SA Mag - Issue 18

PEOPLE CULTURE TRAVEL PROPERTY BUSINESS WINE SPORT ENTERTAINMENT

ISSUE 18 R40.00

PioTrans

Rea Vaya operator looks to end strikes

Swaziland Electricity Company

Investment remains strong despite enormous economic challenges

Indwe Risk Services

Don’t allow your company to be exposed to unnecessary risk

Phumelela Gaming and Leisure SA horseracing company seeks international expansion

South Africa’s all round venue of choice

accessibility • experience • excellence

Unlimited possibilities. Whatever you need, we’ll cover it.

Johannesburg, South Africa • +27 11 794 5800 (t) • +27 11 794 5808 (f) • info@coca-coladome.co.za • www.coca-coladome.co.za

follow us on:

(www.facebook.com/thecocacoladome)

(www.twitter.com/CocaCola_dome)

ECONOMIC GROWTH SLOWS

These are volatile times. Fears about the US economy and the eurozone continue to mount and it is beginning to have an effect on us here in South Africa.

Sacci’s Business Confidence Index (BCI) dropped 4.7 points year-on-year to 98.6 in August 2011, its biggest fall since 2009.

The fall was mainly due to fears about the US economy and the eurozone, raising concerns about current and expected low levels of growth, stagnation of economic activity and job losses.

“These developments had a negative impact on the global economic outlook and on business confidence across the world including South Africa,” Sacci said.

South Africa’s economy shrunk to a growth rate of 1.3 percent in the second quarter of 2011, according to Statistics SA, and Cabinet has urged South Africans and businesses to “exercise caution and responsibility” in the management of finances, in view of current world economic events.

Yet, even before the 2008 financial crisis, South Africa had taken the necessary measures to ensure the soundness and stability of its financial system and fiscal accounts. This enabled the country to weather the crisis when it hit. As a result, South Africa was one of the first countries in the world to register positive growth post the recession.

It is also worth remembering the opportunities that exist in Africa, the world’s richest continent. Investors believe the current global economic crisis may provide a tremendous investment opportunity.

Chinese investment in Africa is already notoriously extensive – estimated at $33 billion between 2002 and 2007 alone. And many other emerging Asian economies are joining the 21st Century scramble for Africa.

African countries are challenging old perceptions of corruption and violence through practicing better governance, trying to entice private sector firms to fund infrastructure projects that were conceived before the global financial crisis struck.

This all represents an opportunity for South Africa.

Enjoy the magazine!

Ian Armitage Editor

EDITORIAL

Editor – Ian Armitage Editorial assistant - Inger Smith Sub editors – Jahn Vannisselroy Janine kelso Tom Sturrock Writers – Colin Chinery Jane Bordenave John O’hanlon

BUSINESS

Advertising Sales Manager – Andy Ellis Research manager – Chris Bolderstone Researchers – Jon Jaffrey Elle Watson Dave hodgson Sandra Parr Sales – Andy Williams Sales administrators – Abby Nightingale katherine Ellis

ACCOUNTS

Financial controller - Nick Crampton

PRODUCTION & DESIGN

Magazine design – Optic Juice Production manager - Jon Cooke Images: Getty News: NZPA, AAP, SAPA

DIGITAL & IT

Head of digital marketing & development – Syed Ahmad

TNT PUBLISHING

CEO - kevin Ellis Chairman - ken hurst Publisher - TNT Publishing Ltd South Africa Magazine, The Royal, Bank Plain, Norwich, Norfolk, Uk. NR2 4SF TNT Multimedia Limited, 10 Greycoat Place, London, SW1P 1SB tntmagazine.com

ENQUIRIES

Telephone: 0044 (0)1603 343267 Fax: 0044 (0)1603 283602 emailus@southafricamag.com

SUBSCRIPTIONS

Call: 00441603 283573 subscriptions@southafricamag.com

www.southafricamag.com

www.southafricamag.com

3

24 16 48 60

4

10

www.southafricamag.com

102

74 90

REGULARS

Contents

06

NEWS

all the latest news from South africa

10

CULTURE

Action-packed Cape Town

You don’t have to be a history buff, wine connoisseur or fashionista to fall in love with South africa’s “mother City”.

FEATURES 16

REZIDOR HOTEL GROUP

INDWE RISK SERVICES GRINDOD INTERMODAL (PTY) LTD HFR REFRIGERATED TRANSPORT UNILEVER ZIMBABWE ZAMBEZI RANCHING AND CROPPING

Cover

24 34 42 48 54 60

SWAZILAND ELECTRICITY COMPANY

66 70 74 82 86 90 96 102

PHUMELELA RACING PIOTRANS (PTY) LTD FLEETAFRICA ABAGOLD CIVILCON CFAO ZAMBIA BOSVELD SPAR ZAMBIA www.southafricamag.com

5

All the latest news from South Africa Lifestyle

Joburg commute

amongst worst says IBM Commuter ‘Pain Index’ A new survey on commuting released

by IBM has found that for many people in metropolitan areas around the world, getting to work is more painful than ever.

The IBM study looked at the daily commute in a number of economically important international cities and reveals a surprising pattern - even though commuting has generally become more bearable during the past year, drivers are complaining a lot more about traffic and the stress and anger it causes.

This is particularly true of Johannesburg, which remains one of the worst cities in the world in which to commute, the study says.

Joburg has undergone recent multibillionrand investments on a highway improvement project and seen the launch of the Gautrain and Rea Vaya, all of which have improved travel in the city.

The seemingly endless roadworks though – which cause gridlock and stop-start driving – combined with the driving habits of taxi drivers, are some of the stress triggers in 6

www.southafricamag.com

Johannesburg commuting.

“On average, drivers in Nairobi, Mexico City, Johannesburg, Beijing, Bangalore, and Moscow spend the longest time – 36 minutes or more – on the road to get to their workplaces or schools,” the IBM survey found.

Asked if traffic had increased their stress levels “significantly” this year, 52 percent of respondents in Johannesburg agreed, a dramatic increase on the 30 percent who reported significant stress last year.

Respondents reported that traffic jams had a negative effect on stress levels, health and productivity.

Crime

Strikes

South Africa’s NUM promises murder rate drops South Africa’s murder rate dropped 6.5 percent to 15,940 murders in 2010/11 compared to the preceding period, annual crime statistics showed Thursday.

The figures were drawn from April 2010 to March 2011.

Attempted murder also decreased - some 12.2 percent compared to the previous 12-month period.

There was a decrease in sexual offences by three percent but the number of reported rapes – rapes remember sometimes go underreported – rose from 55,097 to 56,272.

During the period under review, 94 police officers were killed in the line of duty. This was down from the previous year’s figure of 110.

Car hijackings were down to their lowest level since 2003/04.

‘stress’

for Eskom

Marches and pickets planned by the National Union of Mineworkers (NUM) were “the beginning of big wars to come” with parastatal electricity supplier Eskom, the union has claimed.

NUM spokesman Job Matsepe said in a statement that the “working lives of Eskom management will never be the same again”.

“They will have sufficient stress to deal with,” Matsepe said.

NUM, the National Union of Metalworkers of SA (Numsa) and Solidarity are demanding a 13 percent wage increase.

Infrastructure

Railway deck to boost

Joburg investment

Modern high-rise buildings towering over sprawling retail shops in the inner city, a thriving economy with an efficient transport system, sustainable jobs and an active business hub: this is the vision of Johannesburg’s railway decking development.

Railway decking is a model commonly employed in big cities to overcome space limitations by building a structure above the railway lines.

Johannesburg’s multi-billion rand railway deck is to be built in phases over

30 years, east and west of the city’s central Park Station. It will have a range of housing options – low cost and mixed rental units – hotels and office blocks.

The decking work is expected to begin in 2012 in two inner city suburbs – Doornfontein and Fordsburg – according to Virgil James, City of Joburg spokesperson.

“The City is currently finalising the feasibility and consultation phases,” James said. “However, the development of nondecked areas on the periphery of the deck is due to start by the end of 2011.” www.southafricamag.com

7

Money

Business

Vavi calls Economic Swazi loan a

growth

‘mistake’ slows to 1.3 percent

Cosatu secretary general Zwelinzima Vavi said that a government decision to give Swaziland a R2.4 billion bailout was wrong.

“We are saying it was a mistake... that’s our tax money you are giving to them,” he told a Food and Allied Workers’ Union congress in Johannesburg.

The reality was that most South African workers still did not earn a decent living wage, yet it was bailing out other struggling countries.

Cosatu said it would take up the battle of the Swaziland people because it wanted them to have freedom.

It wants a democratic multi-party system in the African kingdom.

The union federation recently sent a delegation to Swaziland to participate in pro-democracy protests. Deputy Cosatu president Zingiswa Losi and deputy international secretary Zanele Matebula were arrested and deported.

Swaziland is in financial crisis and political parties have been banned since 1973.

King Mswati III holds the country’s ultimate executive, legislative and judicial power.

South Africa agreed to loan Swaziland the money on condition that it be used for economic and political reform.

8

www.southafricamag.com

South Africa’s economy shrunk to a growth rate of 1.3 percent in the second quarter of 2011, official statistics showed.

Statistics SA said the second quarter of 2011 saw real gross domestic product (GDP) slowing to 1.3 percent from the first quarter’s 4.8 percent.

StatsSA said the biggest contributors to the GDP were general government services, which increased by 0.8 percentage points, followed by finance, real estate and business services and the wholesale, retail and motor trade and catering and accommodation industry.

Economic activity in the manufacturing industry shrunk by seven percent while mining and quarrying shrunk by 4.2 percent, StatsSA added.

Unadjusted real GDP for the first six months of 2011 compared to the same period last year was 3.3 percent.

In 2010, economic growth was 2.8 percent, while the economy contracted by 1.7 percent in 2009 when South Africa was in recession.

The economy came out of recession in the third quarter of 2009. Pre-recession growth reached levels of five percent.

Finance Minister Pravin Gordhan has said South Africa needs sustained growth of seven percent for 20 years to substantially decrease unemployment.

Sport

Business

Zimbabwe threatens to cancel

Rugby Zimplats license World Cup gets underway

in Auckland

The seventh Rugby World Cup has been officially declared open at Eden Park Stadium in Auckland, New Zealand.

The president of the International Rugby Board Bernard Lapasset set the ball rolling for the 48-match tournament, which will reach its climax with the final at the same venue on October 23.

The first match between New Zealand and Tonga started immediately after the opening ceremony at 8.30pm local time (10.30am SA time) on September 9.

The rugby world is primarily focused on the All Blacks and their quest to end their 24-year wait for World Cup glory so the pressure is pretty much off the Boks, which makes them a formidable proposition.

Zimbabwe’s indigenization minister has said he will cancel the license of South African-owned platinum mining giant Zimplats because the firm is refusing to hand over 51 percent of its shares to blacks.

Robert Mugabe’s side of Zimbabwe’s shaky coalition government wants all foreign and white-owned firms worth over $500 million to hand over majority shares within five years.

Prime Minister Morgan Tsvangirai argues that the move will discourage investment.

Zimplats is among 11 firms that were given ultimatums in August to furnish “acceptable” indigenization plans.

“Zimplats continues to defy the laws of this land,” Indigenization Minister Saviour Kasukuwere was quoted as saying by the official Herald newspaper.

Impala Platinum of South Africa has the majority shareholding in Zimplats, which mines for platinum on the Great Dyke, a range of hills stretching through central Zimbabwe.

Entertainment

Darren Scott quits

amid racial row

SuperSport Rugby World Cup anchor and Jacaranda 94.2 breakfast host Darren Scott has resigned amidst a racial row.

A SuperSport statement said that it had “granted Darren Scott an indefinite leave of absence from his role as a presenter on its channels, in order that he may focus his attention on personal matters, which have been the subject of recent media reports”.

“This follows an earlier discussion between Scott and SuperSport,” the statement added.

The row erupted after Scott allegedly called a colleague a kaffir several times at a Jacaranda 94.2 team building event.

SuperSport spokesman Clinton van der Berg told Beeld newspaper that Neil Andrews and Peter Davies would take over as presenters.

Jacaranda 94.2 spokeswoman Jenny Griesel confirmed his departure from the radio station, where he hosted the “Just Plain” breakfast show. www.southafricamag.com

9

n w o T e p Ca ACTION

PACkED

You don’t have to be a history buff, wine connoisseur or fashionista to fall in love with South Africa’s “Mother City”

By Adam Edwards

a

squeal of confused excitement goes up among the other surfers treading water offshore. What looks like a fin edges above the surface, snaking between my friends and I. My over-active imagination kicks into overdrive: “This is it,” I say to myself, expecting my life to flash before my eyes.

But before I know what’s happening, I’m screaming excitedly to my friends, pointing at the blackish-brown object slipping through the water.

10

www.southafricamag.com

“Look,” I yell, just as a tiny pup leaps out of the water, “a baby sea lion.”

The excitement reaches fever pitch as the bug-eyed scamp swims within a whisker’s length of us, flippers twirling, lapping up the attention.

“Only in Cape Town,” I tell people afterwards – a cheesy sentiment, but the so-called “L.A. of Africa” is one of those rare places that actually live up to the gushing travel reviews.

Mediterranean climate, exhilarating mix of cultures, laid-back pace, and some of the best waves in the southern hemisphere are

Action-packed Cape Town CULTURE

just a few of the reasons INSIDER’S GUIDE: which have me coming n, Myrna van Pinxtere back year after year. d an r ite wr e nc a freela My friends, on the d se ba nt de stu r’s maste other hand, are drawn by ls her in Cape Town, revea the hair-raising activities favourite hangouts. the Cape region has to offer – as I quickly discover Q: WHERE DO YOU when they start producing GO TO CHILL OUT? ends pamphlet after pamphlet, as I usually meet my fri ls in we settle down for lunch at for half-price cocktai tend one the smart bistros the city centre. We et – that line the historic to head to Kloof Stre rists V&A Waterfront. there are fewer tou they are on Long a lot cheaper than e ar s ink dr the d an Thankfully, the troupes of here my particular Buzz Cafe is one of nt. fro ter Wa the or fire-breathers, jugglers and Street delicious food illed out and serves ch y all re it’s , es rit favou traditional African dancers Mountain. s great views of Table ha it , us Pl ls. tai ck and co battling it out on the quayside by called Labia. this old cinema near to go to d ten we , Then ballroom of the offer a welcome distraction, ce – it used to be the pla le litt d od y all re It’s a – but I love the and the conversation soon ubles up as a café too do d an y ss ba Em n Italia ow art films rather moves on. ce. They usually sh pla the of l fee c lgi nosta people prefer it as But it’s not long before s, but a lot of local vie mo am tre ins ma than more relaxed. talk turns to climbing Table n drinks and it’s a lot ow ur yo e tak n ca you Mountain, the soaring flatER CAPE TOWN’S OTH OF E M topped mountain that looms SO E AR AT H Q: W MS? above the city, and before I LITTLE-KNOWN GEout the city is the range and ab s know what’s happening, I find One of the best thing Town has some For instance, Cape er. off on d myself on a three-hour slog up foo of ty quali Street is one of my luga on Waterkant Be . nts joi i this 3,500ft (1,000m) Everest. sh su t grea nu at Asoka – a the Asian-fusion me e lov I ile wh , es (Just thinking about it makes my rit favou oof Street. e-cum-bistro on Kl legs ache.) swish cocktail loung eat for fancy gr is Long Street The Royale Eatery on Cock-a-hoop at conquering Observatory called in t an rustic restaur a ’s re the d an s, er burg such a mammoth, my friends and rican dishes like rves hearty South Af se t’s tha sh ne Ga Café I catch a cab to Long Street, in springbok fillets. “pap and veg” and the heart of the city centre, for a few well-deserved drinks. Packed bars and clubs overflow onto mezzanine verandas, and people huddle around tables to watch the comings and goings in the street below. Leaning against the wrought-iron balustrades with live music and laughter ringing in my ears, I feel like I’m in New Orleans’ French Quarter during Mardi Gras, rather than Africa on a weeknight.

?

FOR AN ADVENTURE OD GO S E’ ER H W Q: minutes and Langebaan, 90

ternoster The area around Pa end a few days with is a great place to sp , wn To pe Ca of rth no d and I camped there last, my frien up s wa I en Wh . ds frien ere we could hear a at Tietiesbaai wh se the to xt ne ht rig t at night. the surf from our ten whales frolicking in nd- and kitewi for t t is also grea This stretch of coas mountain biking, on kayaking, sailing, nti me to t a no , ng rfi su aan you can go scub ing. Plus, at Langeb hik d an ing rid t. as rse ho cks off the co explore the shipwre diving with seals or

www.southafricamag.com

ADRENALINE

-FU

ELLED ADVEN Tandem skyd TURES: ive: skydivecap etown.za.net Shark diving: sharkcagediv ing.co.za Bungee jumpi ng: faceadrena lin.com Elephant-bac k safari: addo elephantback safaris.co.za

As the late-night band starts to hit its stride, however, I decide to call it a night, and head back to my digs for some much-needed shuteye.

I’m staying a short taxiride away in Observatory – a bohemian suburb packed with buzzing hole-in-thewall bars, and shabby-chic cafes and restaurants where you can enjoy anything from a quiet coffee over a book or a sumptuous three-course meal for less than a tenner – to a rowdy night dancing Coyote Ugly-style on the bar, depending on what takes your fancy.

The next morning, I wake up at the crack of dawn 12

www.southafricamag.com

The sight of the comical penguins waddling on the beach and swimming among bathers has me in hysterics

itching to hit the beach. From Observatory it’s a 30-minute drive to the premier windkite- and surfing hotspots at Kalk Bay and nearby Muizenberg – scene of my nose-to-nose encounter with the Cape Fur Seal pup.

(Apparently, they just look like sea lions.)

After a few hours pounding Muizenberg’s waves, my friends and I decide to head down the coast to Kalk, and grab lunch at the Brass Bell – an opensided restaurant-cum-bar that I manage to drift back to every time I’m in the city.

Action-packed Cape Town CULTURE

Bikini-clad beauties and bronzed-gods sit at rustic picnic tables exchanging stories of their day’s exploits over some of the best (and most reasonably priced) grub in the city.

Gentle waves lap against the restaurant walls, sending a refreshingly cool spray into the air, and I ponder chilling out here for the rest of the day – but the promise of seeing the pint-sized Jackass penguins further down the coast at Boulders Beach proves just too alluring.

The waters in this part of the Cape, known as False Bay, may be home to animals more typically associated with Antarctica than Africa, but this stretch of coast is actually the warmest in Cape Town.

However, if you don’t mind your surf bracing, the Atlantic coast has some of the best waves. In the South African summer (November-March) Kommetjie’s Sunset Reef even boasts some of the biggest waves in the world, which on good days can reach a bone-crushing 25ft (eight metres).

The sight of the comical penguins waddling on the beach and swimming among the bathers has me in hysterics.

My pals, on the other hand, are preoccupied with thoughts of the seabirds’ mortal enemies – the waters off Cape Town are home to one of the largest populations of Great White sharks in the world and, unbeknown to me, they’re planning a cage-dive with these toothy predators.

I manage to give this excursion a wide birth – I’ve seen Jaws too many times to be dangled over the side of a boat like giant bait.

Buoyed up by their shark-dive, my friends book themselves onto an array of deathdefying excursions: skydiving, paragliding, abseiling down the back of Table Mountain – just the thought of it sends my legs to jelly.

Their ultimate sights, though, are set firmly on the world’s highest commercial bungee jump, a few hours drive from the city along the tourist-clogged Garden Route.

I decide to hire a car and set out along this spectacular drive (suffice to say, I’ve no plans to take the 216m plunge), and it’s not long before I discover why South Africa’s answer to Route 66 is so popular: it’s the sheer number of sights and activities on offer.

I feel like the proverbial kid in a sweet shop, unable to settle on just one treat.

“Should I go dune boarding at De Hoop or black-water tubing down Storms River?

But I also fancy zip-wiring though the forests of Tsitsikamma, ostrich racing in Oudtshoorn and whale-watching at Hermanus… ooh, and I really want to ride an African elephant.” www.southafricamag.com 13

Unfortunately, I end up wussing out of most the activities (or running out of time).

I do, however, manage to summon up the courage to go zip-wiring, and spend an unforgettable afternoon whizzing through the forest canopy like a crack-SAS soldier.

But my cowardly streak comes to the fore, once more, when I’m offered the chance to ride an ostrich – I’ve never seen an animal run so fast.

My trip along the coast takes me as far as Addo Elephant National Park – home to the largest concentration of ellies on the planet – where I book on to a guided night-safari to witness Africa’s big game in their eerie nocturnal world.

Driving through the bush, the driver scans the darkness with his industrial-strength torch, wisely ignoring the incandescent eye-shine of the antelope and kudu standing agape by the side of the road.

Suddenly, he cuts the engine, and after a tense few minutes a pride of lions emerges from the shadows, encircling our jeep. As the rest of the passengers and I watch in awe, gripped by the same rush of adrenaline and fear as a scary movie in a blackened cinema, a crackled message comes over the radio, and before I know what’s happening, we’re off in hot pursuit of something else.

After a few twists an turns, the driver slams on the brakes once more and out of 14

www.southafricamag.com

the darkness appear a herd of more than 60 elephant marching trunk to tail.

It is the perfect end to my jaunt up country.

Back in Cape Town, I spend my last few days flitting between Long Street and the beach, before deciding that it’s only polite to drop by a couple of vineyards. (“When in Rome,” as they say.)

I make a beeline for the Boschendal estate near the picturesque town of Franschhoek and while away a blissful couple of hours sipping wine under a spanning oak tree, before continuing the “vineyard crawl” with a visit to Spier, near the historic town of Stellenbosch.

Boschendal may ooze character, but the sprawling Spier estate is my hands down favourite. Its swanky restaurant set among the trees, and cheetah outreach programme (where you can play with the cubs or stroke fully-grown adults) has me like a rabbit in its glitzy commercial headlights.

My friends and I stock up on vino and head back into the city to watch the sunset from Lion’s Head, the sphinx-shaped hill that flanks Table Mountain.

After an hour-or-so climb, we finally make it to the top and crack open a bottle of Boschendal just as the setting African sun dips into the Atlantic. The others start reminiscing about the best part of their adrenaline-fuelled

Action-packed Cape Town CULTURE

PARTY TOWN

The fun-loving Ca petonians have a shindig for every occasion.

Here are just a few dates for your dia ry:

OBSERVATORY FE STIVAL OF ARTS

WHAT: This bohem ian neighbourhood , with its beautifullylatticed Victorian houses and frontier -town feel, is transformed into a giant festival-gr ound during the weeken d-long music, arts and film event. Observ atory’s main stree ts are given over to live pe rformances, gigs and market stalls, and the once traffic-clo gged streets throng with people as the large st street-festival in so uthern Africa kicks into full swing.

WHEN: December

5-7, 2011

CAPE MINSTRELS

CA

RNIVAL WHAT: To foreign visitors, the sight of dance troupes daubed in black and white face paint with tambourines , whistles and trum pets in hand, may seem astonishin gly un-PC, but th is emancipation ce lebration is the highlight of Cape Town’s cultural calendar. The mixe d-race “coloured” community – who form the racial majority in Cape Town – spend mon ths rehearsing their dance steps and creating their ou tlandish suits in preparation for th e noisy Mardi Gras style parade that Capetonians of ev ery background line the streets to ch eer on.

WHEN: January 2, 2012 holiday, while I slip into my own little world and start planning my next (action-packed) visit. I just hope I’ll have discovered my inner daredevil come this time next year! END

CAPE TOWN PRID

E FE

STIVAL WHAT:Cape Town may be known as th e “L.A. of Africa”, bu t in one respect at least, the city has m ore in common with San Francisco. Sin ce the legalisation of homosexuality in 19 94, this laid-back metropolis has estab lished itself as the gaycapital of Africa. Ev ery February, thou sands flock to the city for 10 days of parties, parades, beach pic nics and pageantry .

WHEN: February 24 - March 4, 2012 THE CAPE TOWN

FEST

IVAL WHAT: The sound of African drums and calypso-jazz fl oat on the breeze.

Bollywood dancer s vie with Zulu “warriors” for the crowd’s attention.

Man-made giraffes amble down Long Street. This unusua l festival is part Ri o Carnival, part Lion King the Musical – with just a dash of Okto berfest thrown in for good measure. At its heart, though, is the simple aim of bringing Cape Town ’s various races toge ther for a night of fun and revelry.

WHEN: March 17, 2012 CAPE TOWN INTE JAZZ FESTIVAL RNATIONAL

WHAT: Each year, more than 40 artis ts from across the re gion and around th e world descend on the city for the even t, which was headlin ed this year by US super-group Earth , Wind & Fire. The highlight of the fes tival is a free conc ert in the city centre th at blends the local Dixieland jazz, with pop and R‘n’B. WHEN: March 30-3 1, 2012

SEE: capetown.travel, sharkcagediving.co.za, skydivecapetown.za.net, addoelephant.com www.southafricamag.com 15

Powering THROUGH The Swaziland Electricity Company continues to invest heavily in capital projects despite enormous economic challenges, Managing Director Pius Gumbi tells South Africa Magazine.

By Ian Armitage

16

www.southafricamag.com

The Swaziland Electricity Company FEATURE

S

waziland has been faced with enormous economic challenges, exacerbated by a major decline in revenue from the Southern African Customs Union (SACU).

Revenue from SACU – the world’s oldest customs union, comprising Botswana, Lesotho, Namibia, Swaziland and South Africa – contributed 76 percent of the Swazi government’s income in 2009 but dropped in 2010 and is expected to continue declining over the next decade.

The global recession has been blamed, and it is within this new framework that the Swaziland Electricity Company (SEC) must operate.

“The situation is challenging and we are dealing with a potential decline in business as a major customers result of opting for self-generation.

This is due to the high increases in tariffs over the past three years, as well as the decline in the industrial base,” Managing Director Pius Gumbi tells South Africa Magazine. “Our country’s economy has come under severe pressure as a result of the significant decrease in SACU revenue.

This has seen the country’s deficit increasing and has

We remain positive that once all the ongoing initiatives are implemented, they will see us remain sustainable in these arduous economic times Pius Gumbi, Managing Director

www.southafricamag.com 17

The Swaziland Electricity Company FEATURE

forced Government to cut down on certain capital projects and expenditure.

“The reduction in economic activity has also had a negative effect on our business growth.

The closure of two big companies during the last financial year has had a negative impact on our business. This is reflected in a 4.1 percent decrease in our sales volume.”

Despite negative macroeconomic challenges, SEC has performed exceptionally well, he adds.

“We are restructuring to ensure we remain sustainable. Emerging challenges include the increasing domestic network, which puts a strain on the quality of supply as well as the decline in large customers. This is due to a proportion of them closing down, others opting for self-generation as well as a decline in the industrial base.

“Some elements of the restructuring remain ongoing, in particular the remuneration review, whose objective is to address concerns about manpower costs. We remain positive that once all the ongoing initiatives are implemented, they will see us remain sustainable in these arduous economic times.”

SEC is currently in the process of converting 18

www.southafricamag.com

customers from the post paid to prepaid system, a process that is close to completion.

It’ll help improve service, Gumbi says.

“We want to ensure all of our valued customers are serviced properly,” he explains.

SEC – formerly Swaziland Electricity Board – is state owned and sole provider of power in the country.

It has, over the last five years, been involved in infrastructure development through out Swaziland.

The projects for 2011 included the construction of new substations in Mayiwane and Lawuba and the completion of Manzini North.

Manzini North Project was completed on schedule and commissioned in July 2010.

The substation is expected to improve the quality of supply in the sub-region.

The Mayiwane Substation and the feeder line from Sihhoye were awarded to Consolidated Power Projects (Pty) Ltd in October 2010 and the construction work began with the feeder line in February 2011. This project is expected to be completed

by December 2011.

SEC is also in the process of building four new depots.

Gumbi says the depots will help improve the company’s turnaround time and meet customers’ needs.

So far SEC has been able to secure land for such

DU-VAN DEVELOPERS Du-van Developers prides itself of being the main contractor for the SEC Regional Headquarters Building in Manzini.

Du-Van Developers is well known for the major structures constructed in the kingdom of Swaziland, we are not only Building Contractors but carryout most Civil Engineering Works e.g. to Water and Sewer Reticulations, Bridges, Dams, Roads and Townships, Retaining Walls and Driveways.

No job is too small.

We are proud of being involved in the following major projects: •

Swaziland Government - Interministerial Office Block - Mbabane

•

IDM/ Simpa Campus Kwaluseni

•

Swaziland Pension Fund Head Quarters - Mbabane

•

Ministry of Defence Headquarters - Lozitha

•

RiverStone Mall - Manzini

•

Siteki Reservoirs – Lubombo Region

•

NERCHA Head Quarters Mbabane

Over the years Du-Van Developers has focused on building a team that offers the skills and experience necessary to achieve a quality product for its clients.

Tel: (+268) 2518 4699 (+268) 2518 4766 Fax: (+268) 2518 5129

P.O.tBox1414 Matsapha Swaziland

BUILDING THE NATION BUILDING AND CIVIL ENGINEERING CONTRACTORS

Email: info@duvan.co.sz http://www.duvan.co.sz

   



     



The Swaziland Electricity Company FEATURE

projects at Madlangemphisi and Sithobela areas.

Gumbi says alongside the depots, land had been secured for the building of substations at Nkhaba and Siphofaneni. A project called system re-enforcement had started at Mayiwane where a 66/11kV substation would be built. It would be powered from an overhead line from Sihhoye, which would be constructed on steel monopoles.

“These depots will assist in bringing service closer to customers and also in responding to incidents promptly,” Gumbi says.

“In response to His Majesty King Mswati III’s call to lead the country towards attaining first world status, we continue to invest heavily in capital projects,” he adds. “During the last financial year, E228 million was spent on new projects, some of which were still in progress at year end. This will ensure stability in power supply.

GM Operations Meshack Kunene displaying some of the equipment at the Manzini North Substation

Construction works at the new Manzini Regional Offices

20

www.southafricamag.com

“It is regrettable that no progress has been made on the Thermal Power Station Project due to a delay in obtaining the Mining and Exploration Licence from the relevant body.

We remain hopeful that this will occur soon as all the Company’s necessary preparations have been concluded.”

During 2010/11, SEC recorded a total income of E190 million, a 58 percent increase compared to the previous year.

Revenue increased by 22 percent to E973 million, which is attributed to tariff increases.

The stability of the local currency, the Lilangeni, against the US Dollar and the Euro helped the Company to keep foreign exchange losses to a minimum.

“SEC’s customer complement grew by 13 percent, bringing the total number to 99,631 from a previous customer base of 88,182,” Gumbi says. “SEC continued to roll out the Prepayment Project resulting in 83.4 percent of SEC customers migrating to prepaid supply.

“Customer growth by tariff category continued to be dominated by the domestic sector which constitutes 89 percent of SEC’s customers.”

One of the biggest threats to SEC is theft.

It is losing about E136 million per year as a result of people stealing electricity.

Gumbi says the commercial losses of electricity being stolen through illegal connections are a great concern, as a lot of money that would otherwise reduce the cost burden on honest consumers was being lost.

People steal electricity through bypassing SEC’s system, which has a negative effect on good customers who end up footing the bill because SEC also has to meet its obligation to Eskom.

It is a catch-22 because one of the reasons people steal electricity is because is often expensive.

SEC is currently buying units at E221.43 during peak hours and some would find

www.technoquip.co.za

Technoquip Swaziland is a dynamic local distributor of Overhead HT & LT Transmission Line Products, Telecommunication products, Test and Measurement equipment. We are also specialists in the analysis, design, development and implementation of information systems for the management of engineering, financial, production, office automation and other services.

Technoquip Swaziland supports and provides the necessary tools to sustain optimal management of the information systems.

Information from a wide spectrum of sources forms the key ingredient in all decisions.

NIFTY INVESTMENTS (PTY) LTD

MATSAPHA INDUSTRIAL SITE, PLOT 689, TABANKULU ST, MATSAPHA PO BOX 1756 MANZINI, M200

FAX: + 268 5504358 SALES: +268 2550 4358 /2550 4820/25185136/25184409 EMAIL: info@niftygroup.co.sz WEBSITE: www.niftygroup.co.sz

Nifty Investments is a venture driven by a team of Swazi directors whose regional approach to business is core to the investments they have made. Nifty Investments believe there is no such thing as overnight success, but conscious determination, strategy and hard work will deliver over a period of time.

The core business activities of Nifty Investments are: • CONSTRUCTION, INTERIOR DESIGN AND WALL COATING • PROMOTIONAL PRINTING i.e. on T-SHIRTS AND CAPS etc • TELECOMMS AND DATA SUPPLY • PROTECTIVE CLOTHING & SAFETY EQUIPMENT SUPPLY • EVENTS MANAGEMENT & EQUIPMENT HIRE • SUPPLY OF EFFLUENT AND WASTE WATER MANAGEMENT PRODUCTS AND SERVICES • EXCLUSIVE FURNISHING AND CURTAINING FOR HOME AND OFFICE

The Swaziland Electricity Company FEATURE

themselves spending in the region of E1 million on just electricity.

“It’s a challenge for the country as a whole,” Gumbi says.

Swaziland does not currently allocate money in its national budget to address this issue.

A potential solution could be amending the Electricity Act, which does not currently have any punitive measures for people who steal electricity.

Customer growth by tariff category continued to be dominated by the domestic sector which constitutes 89 percent of SEC’s customers

POWERLINE We have been providing top quality service at competitive rates to the commercial, industrial, corporate, domestic and agricultural industries since 2002.

Our main members are fully qualified with necessary registration and licence numbers, equipping us with the facility to provide our clients with compliance certificates for any installation.

All installations carried out by Power Line Investments are in accordance with SANS 10142 specifications and our L.P. Gas installations are in accordance with the LP Gas Association of South Africa (SAQCC No. 501 /502)

Manzini North Sub station

SEC is able to trace people who steal through compilation of a consumption report. A red flag could be raised where someone who had been spending maybe E500 per month suddenly spends less than E50 through tampering with the prepaid meter.

To learn more about SEC and the themes in the article visit www.sec.co.sz. END

22

M.V. & L.V. Reticulation | Air conditioning & refrigeration | LP Gas Installations

Proud to be associated with Swaziland Electricity Company Tel/Fax: (00268) 236 365 11

admin@powerlinesd.com

VEM VUSISIZWE ENGINEERING & MAINTENANCE (PTY) LTD

VEM (registered 2009) is a multi-skilled engineering and maintenance company.

We have proudly worked with SEC to help complete the conversion of conventional credit electrical meters to modern prepayment metering.

Contact us today to discuss how our skilled workers can complete your projects.

King Mswati III Ave West Smithco Complex P.O. Box 2033 MATSAPHA.

Tel. (+268) 518 5434 Fax. (+268) 518 5434 E-mail vusie.dube@realnet.co.sz

+268 2518 6525

info@brandingdesign.co.sz

SIGNAGE BILLBOARDS A FRAME ARCH FLAGS FLAGS GAZEBO TELESCOPICS SHARK FINS WALL BANNERS PVC BANNERS STICKERS VEHICLE WRAPS

+268 2518 7159 info@embroidery.co.sz

EMBROIDERY SEWING DOMING SCREEN PRINTING HEAT TRANSFER CORPORATE GIFTS PROMOTIONAL GOODS

fastest ONE OF ThE WORLD’S

24

www.southafricamag.com

The Rezidor Hotel Group FEATURE

growing hOTEL ChAINS

South Africa Magazine profiles The Rezidor Hotel Group, one of the world’s fastest growing hotel chains.

By Ian Armitage

T

he Rezidor Hotel Group is one of the world’s fastest growing hotel chains. Since 1994, the number of rooms has increased tenfold and Rezidor now has a portfolio of over 420 hotels in 64 countries across Europe, the Middle East and Africa.

You could say success has come quickly – and compared to its competitors that is certainly true.

“It is a remarkable tale,” says Andrew McLachlan, VP for Africa & the Indian Ocean Islands, who established the Rezidor Africa development office in Cape Town in 2007.

According to McLachlan, around 40 percent of the group’s total hospitality offering in operation is in the emerging markets of Africa, the Middle East, Russia and CIS. “What’s more, of the 100 plus hotels or 20,000

rooms in the pipeline 75 percent is in the emerging markets of Africa, the Middle East, Russia and CIS,” he says.

And it is set to grow.

“Africa is a strategically important market, very much so,” McLachlan adds. “As the mature markets of the West become increasingly saturated, this is where we sees our future.”

McLachlan’s task is clear: grow Rezidor’s presence on the African continent. He says that will be achieved by growing and consolidating the position of Radisson Blu and Park Inn by Radisson – two of Rezidor’s major brands.

“As far as Africa is concerned, I’m convinced that the opportunity is wide open,” he says. www.southafricamag.com 25

The Rezidor Hotel Group FEATURE

“There is clear recognition that this is where our future focus should be.

“The new hotels currently under development will be located in the capitals or financial hubs of these economies.

“The Rezidor Hotel Group is one of the world’s fastest growing hotel chains, and a strong presence in emerging markets is viewed as critical to long-term success.”

Over the last 48 months, McLachlan’s office has added 34 new hotels to the portfolio.

“The goal is to grow quickly,” he says.

Rezidor’s story is all the more remarkable when you consider that, in the early years, growth in Africa was slow.

A PORTFOLIO OF GREAT HOTELS RADISSON BLU HOTELS Radisson Blu Hotels & Resorts are first class, full service hotels that combine a stylish and contemporary approach to design, with a culture of innovative thinking designed to meet the very specific needs of its guests. These innovations include its ‘Yes I Can!’ spirit of hospitality, a great choice of concept rooms with Nespresso® coffee machines in Business Class, a 100 percent Guest Satisfaction Guarantee programme, an Easy Connect approach to IT with Free high-speed Internet access for all guests and meeting delegates, and a fantastic range of bars, restaurants, leisure facilities such as spa and wellness centres and meetings and events venues. www.radissonblu.com

PARK INN Park Inn by Radisson is an energetic, familyfriendly hotel brand that takes pride in delivering what really matters: a good comfortable bed in a clean and safe environment. From check-in to the moment of departure, the Park Inn by Radisson experience is committed to being friendly, efficient, uncomplicated and hassle-free. With colourful lobbies and great, contemporary room styles and restaurant spaces, Park Inn by Radisson promises you the best sleep in town... every time at any hotel in Europe, Africa and the Middle East. www.parkinn.com Exterior - Radisson Blu Hotel Sandton

26

www.southafricamag.com

Learn more at www.rezidor.com

THIS IS OTRUM ENTERPRISE Personalised. Branded. Exclusive.

Simple, smooth and sophisticated guest interface. Designed to enable all guests to explore the interactive offering with confidence.

Guests are often unfamiliar with the TV channels on offer. Provide them with an EPG so that they can clearly see what programmes are on now and what’s next.

Entertain your guests with a comprehensive range of blockbuster & feature movies, documentaries, children’s programming and comedies.

While your guest relaxes in front of the TV, you can use this opportunity to promote in-house facilities, special offers or third party services.

Keep your guests informed by providing real time information direct to their TV. Live news, local flight times and much more.

Guests always appreciate receiving weather information, no matter what the purpose of their stay.

OTRUM Enterprise, your information and entertainment portal.

For more information, please contact: Ms Nandi Mamabolo Tel: +271 187 54 302, Mobile: +27 72 215 0788, Email: nandi.mamabolo@otrum.co.za, Website: www.otrum.com

The Rezidor Hotel Group FEATURE

Lobby – Radisson Blu Hotel Sandton

Unlike established competitors such as Intercontinental, Sheraton or Hilton, Rezidor did not open its first hotel in Africa until 2000.

However, McLachlan says, a shift in executive board strategy in 2006 saw the group focus on creating a “locally-driven, decentralised structure” and a strong management presence on the ground in Africa.

“I think we were the first international hotel group to open a development office for Africa in Africa and that was a masterstroke by Kurt Ritter, President & CEO of Rezidor, who really drove that idea.

“Having local people on the

28

www.southafricamag.com

The Rezidor hotel Group is one of the world’s fastest growing hotel chains, and a strong presence in emerging markets is viewed as critical to long-term success

ntertainment portal.

OTRUM ENTERPRISE

otrum.com

CHANGING YOUR WORLD 9/1/11 2:23 PM

Personalised. branded. Exclusive. This is OTRUm Enterprise - your information, communication and entertainment portal. be prepared for a user experience like no other. Empowering hoteliers to harness the potential of guest profiling and in-room marketing, this ground-breaking solution is truly changing your world by driving revenue growth and optimising the service offering.

CLOUD BASED COMPUTING

PLAY THEIR GAME, RAISE YOUR’S

Moving to ‘The Cloud’ is no longer a pipe dream. The ethos of OTRUM Enterprise is the collection of all data to a central online storage facility, enabling central data analysis to take place and making hotel server room equipment redundant. Allowing for proactive service monitoring and minimal onsite technical support, as well as reducing energy consumption.

Guests come to your hotel with a range of gadgets, and their need to be ‘in-touch’ with the wider world is paramount. Okay, so you provide Internet – so does nearly every hotel in the city – it is time to differentiate. Your guests want to know what is happening in the world and they want to know it in real time - news, weather, flight status etc. Imagine this automatically generated and continuously updated on-screen in every guest room. With OTRUM Enterprise, you can.

ENTERPRISE INTELLIGENCE & GUEST PROFILING know your guest, know your customer. The better you know your guest, the more chance you have to successfully promote in-house services and drive your revenue growth. Anybody can advertise the hotel restaurant by placing posters in the elevator, now it is time to get smart – target individual guests according to their profile type.

With OTRUM Enterprise, you can.

Technology savvy guests are the norm, this is their playing field and what better than to give them a new toy? OTRUM’s smartphone app can be paired with the guest room, enabling the guest to experience interactive TV in a new way.

CONTACT

how about adjusting pricing of services according to the guest profile? Do you have low demand for Internet during the daytime – then plan a campaign to all leisure guests who might be relaxing in their rooms in the afternoon. Animate banners onto their TV screens, you can even personalise the message and send it in different languages. OTRUM Enterprise provides the tools, and you apply your knowledge of hotel trends.

OTRUM operates globally, with local presence in key markets. OTRUM South Africa provides sales, consultancy and technical services throughout Africa. With offices in Johannesburg and Nairobi, we are well placed to serve your needs on the continent. Our installed base includes Park Inn Sandton, Radisson Blu Gautrain, Radisson Blu Sandton Isle and Radisson Blu Port Elizabeth in South Africa, Polana Serena in Mozambique and Sankara hotel in Nairobi kenya to name a few.

Imagine this on a global hotel chain level – the possibilities are endless, and there is a revenue stream just waiting. You have full control of the guest experience, with the power to communicate – you just need to decide “what, where and when” and the rest is easy.

OTRUM South Africa provides a dedicated Sales and Consultancy team as well as having a team of highly qualified After Sales Engineers who can provide remote and on-site support when necessary. All of our technical staff have achieved certification status within OTRUM, and take part in continuous training.

Tel: +271 187 54 302, Mobile: +27 72 215 0788, Email: nandi.mamabolo@otrum.co.za www.otrum.com

www.southafricamag.com 29

The Rezidor Hotel Group FEATURE

ground who understand the market helped us gain an advantage for sure.”

In May, The Rezidor Hotel Group announced that two new Park Inn by Radisson hotels would be built in Africa: The Park Inn Nairobi Westlands, Kenya, and The Park Inn Polokwane in South Africa.

The Park Inn Polokwane in the South African province Limpopo will feature 160 rooms and is scheduled to open in Q1 2013.

The Park Inn Nairobi Westlands in Kenya will add 126 rooms to Rezidor’s pipeline and welcome the first guests in Q4 2013.

“Africa is one of our key markets for future business development,” says McLachlan. “Africa is an emerging continent and offers huge natural resources, improved infrastructure and increasingly stable economies and governments. At the same time it lacks internationally branded hotel rooms or has a dated hotel inventory.

“Nairobi definitely meets our growth strategy requirements and underlines how important East Africa is for our further development in key cities and resort destinations. We see a promising potential in this region and are glad to be present in Nairobi, East Africa’s commercial and aid hub.”

The hotel will follow a Radisson Blu Hotel featuring 256 rooms located in Upper Hill, the upscale new financial and business district of Nairobi, which is under development, McLachlan says.

The hotel is scheduled to open soon, he adds.

“From the wildlife to the nightlife, Nairobi is a city unlike any other,” McLachlan explains.

Radisson Blu Resort & Thalasso Djerba Tunisia

30

www.southafricamag.com

having local people on the ground who understand the market helped us gain an advantage Andrew McLachlan, VP for Africa & the Indian Ocean Islands

Proud to be associated with the Rezidor group

Radisson Hotel

Radisson Hotel

Radisson Blu Hotel

Park-Inn Hotel

Park-Inn Hotel

Accra - Ghana

Maputo - Mozambique

Ikeja - Nigeria

Cape Town

Victoria Island - Nigeria

Pursuit of Excellence Stauch Vorster Architects has earned its reputation as a market leader throughout Africa, by consistently delivering high quality architecture into a diverse number of market sectors including hospitality, residential, commercial, and retail.

By encouraging strong interaction with dynamic clients such as Rezidor, we continue to strive towards exciting tailor-made solutions for each project.

Long Beach Resort - 2011 Mauritius Offices

Stauch Vorster Architects

Cape town Durban Johannesburg Maputo Mauritius Port elizabeth Pretoria

4 Chaplin Road, Illovo Johannesburg, 2196 South Africa Tel: +27 (0)11 268 6090 Fax: +27 (0)11 268 6091 www.svarchitects.com

The Rezidor Hotel Group FEATURE

Pool – Radisson Blu Hotel Sandton

Restaurant – Radisson Blu Hotel Sandton

The Park Inn Polokwane, meanwhile, is Rezidor’s third Park Inn by Radisson hotel in South Africa, following Sandton, Johannesburg and Cape Town.

Polokwane is a major economic centre and the hotel is seen as “strategically important” for Rezidor.

“Its proximity to the neighbouring countries of Botswana, Zimbabwe, Mozambique and Swaziland, as well as a convenient distance from Kruger National Park make it the ideal regional gateway to South Africa,” McLachlan says.

The brand new property will be located alongside Polokwane Golf Course and across the road from the Peter Mokaba Sports Stadium.

32

www.southafricamag.com

RADISSON HOTEL MAPUTO

WSP is proud to have worked with the Rezidor Hotel Group on their recent project in Mozambique. The new Radisson Hotel is situated in Maputo, the prime city of Mozambique, marking Rezidor’s presence in 54 nations.

WSP carried out multidisciplinary engineering services, providing all structural, civil, mechanical, electrical, fire, wet service and IT engineering designs - making this 10 storey property a modern and striking building. www.wspgroup.co.za

The International Airport will be 7km away.

Besides 160 modern and comfortable guest rooms, the hotel will offer a signature RBG grill restaurant, 580 square meters of meeting facilities, a gym, an outdoor swimming pool, and ample parking.

“South Africa offers considerable development opportunities for our young and dynamic mid market brand Park Inn

by Radisson. We aim to enter all nine provincial capitals in the future in addition to the larger cities of Johannesburg, Cape Town and Durban.”

Rezidor has a very flat management structure, which means that reaction times and decision-making are fast and streamlined.

McLachlan sees this as a one of the reasons behind the firm’s success.

Another unique advantage held by Rezidor is its ability to access capital, he says.

Funding is critical to the success of hotel

development, but can be seen as particularly risky in new, untested markets.

Several years ago Rezidor founded AfriNord Hotel Investments, which is an equal partnership between Rezidor and four Nordic government development agencies, which, says McLachlan, it uses “on a caseby-case basis” if funding is needed.

“It means we can provide mezzanine debt funding, which is a competitive advantage,” he explains.

Globally, Rezidor manages a portfolio of three hospitality brands, each designed to capture a distinct segment of the market.

“When we opened our Africa office in 2007, we had a 2015 target of 50 hotels open or under development,” McLachlan concludes. “That target has already been moved forward by three years to 2012, when we will have surpassed our original goal.

“This is a very exciting time for us,” he adds. END

Risky BUSINESS

34

www.southafricamag.com

Indwe Risk Service FEATURE

b

usinesses face risk every day.

In fact, without risk a business or organisation would not grow and thrive.

Risk Management, according to the UK’s Institute of Risk Management’s definition, is “the process, which aims to help organisations understand, evaluate and take action on all their risks with a view to increasing the probability of their success and reducing the likelihood of failure”.

Risk management, it says, “gives comfort to stakeholders” – meaning shareholders, customers, employees and so on – that the business is “effectively managed” and enables “the organisation confirm its compliance with corporate governance

Don’t allow your company to be exposed to unnecessary risks, says Indwe Risk Services’ Peter Olyott.

By Ian Armitage

requirements”.

So what is risk then?

“Risk is the difference between what you expect to happen and what actually transpires,” says Peter Olyott, Executive Head: Operations of Indwe Risk Services. “Risk management is then the process of identifying risks to which a certain organisation is exposed, evaluating these risks in terms of how often they may occur and how serious the impact may be.”

Once this exercise is done, he says, the next step will be to determine how best to manage or treat these risks.

“Effective risk management is used to underpin the strategy of an organisation. If www.southafricamag.com 35

Indwe Risk Service FEATURE

used effectively, it provides the organisation with a level of competitive advantage and if applied poorly or incorrectly, may have the opposite effect.

“Why is risk management important?

Let’s be honest, businesses are vulnerable to a range of threats which can change constantly,” Olyott adds. “No business exists in isolation to the world around it and consequently leaders of the business have a responsibility to the stakeholders of the business to effectively manage the risks to which the organisation is exposed.”

Risk Management, he stresses, is relevant to all organisations whether they are in the public or private sector, or whether they are large or small.

“It should form part of the culture of the organisation, with an effective policy and programme led by top management with clear responsibilities laid down for every manager and employee to be involved in the management of risk,” Olyott says.

It supports accountability, performance measurement and reward thus promoting efficiency at all levels.

“It is very important to understand the purpose of risk management, as it is important to understand what risk in fact is. Risk is characterised by a degree of uncertainty. Where there is certainty as to the expected frequency and severity of events, the risk reduces. Conversely, where there is a great degree of uncertainty as to both the severity and frequency, the risk increases. “ He says risk management is hugely beneficial.

“How can it benefit an organisation?

Several ways. I guess first off it means there are no unpleasant surprises. The risk of unexpected risks occurring is greatest at the onset of a risk management programme and gradually diminishes as the programme grows in maturity. Second, if you manage risk effectively it means you can 36

www.southafricamag.com

SANTAM Premier insurance brokerage, Indwe Risk Services and Santam, South Africa’s leading short-term insurer, have a partnership dating back many years.

Today the two companies continue to build on the triangle of trust between the insurer, broker and client. Indwe is secure in the knowledge that its clients who are placed with Santam enjoy financial security and an innovative approach to pro-active and cost-effective risk solutions. Santam also brings its credo of Insurance, good and proper to Indwe’s client base, assuring them of insurance that is done with stature, integrity and certainty.

Indwe Risk Service FEATURE

No business exists in isolation to the world around it and consequently leaders of the business have a responsibility to the stakeholders of the business to effectively manage the risks to which the organisation is exposed

38

www.southafricamag.com

gain an advantage over its competitors. Also, effective risk management allows companies to recover faster and more economically should the worst happen.

Thirdly, often a particular risk is created in terms of the law and an effective risk management programme allows companies to operate successfully and comply with the laws to which they are subject to.�

Olyott adds that a wellmanaged business will ultimately benefit from a better-priced and structured insurance portfolio. “Risk management will also create a safer work environment for your employees.

Driving intelligence Discovery Insure gives you comprehensive motor cover with seamless access to benefits and services and structured flexibility for additional vehicle, personal and household cover.

Through its incentive-based driver programme, VitalityDrive TM , Discovery Insure encourages you to improve your driving. It rewards you for good driving; ensuring your vehicle is roadworthy and making sure you adhere to driving safety standards. VitalityDrive TM also provides a set of tools and services to protect you and your family on the road.

Guardrisk provides niche insurance products for the commercial market and is the world’s largest cell captive insurance group of its kind.

To find out more about Guardrisk call +27 11 669 1000 or visit our website at www.guardrisk.com.

An authorised financial services provider.

“What is the future of risk management?

Increasingly complex.

“Global market dynamics continue, technological changes abound, environmental risk becomes evermore concerning and complex and new dimensions of societal risks are coming to the fore, resulting in a rapidly evolving risk management landscape. Risk and compliance functions have certainly become even more critical and complex. Most companies are reviewing their current and future state of risk and compliance blueprints. An example could be legal and reputation risks in using social media like blogs and Facebook and Twitter or the cross border legal risks present in international online shopping portals. “ Indwe Risk Services is backed by a legacy of enduring and trusted relationships, providing tailor-made solutions and treating its clients’ needs as its own.

So says Olyott.

The merger of Thebe Risk Services and Prestasi Brokers in 2006 gave rise to Indwe Risk Services. While Thebe Risk Services originated as Hoskens Insurance Brokers in 1903 and became the insurance arm of the Thebe Investment Corporation, the country’s oldest black empowered group, Prestasi Brokers was established in 1972 and became rapidly known for its innovative short-term insurance offerings for individuals and the SMME sector.

Indwe believes in personal relationships and offers face-to-face consultations. While constantly looking for ways to improve individual, corporate and commercial product solutions, the company is committed to providing excellent service to all its clients.

“We offer unique tailored cover and risk solutions,” Olyott says.

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

40

www.southafricamag.com

END

BYTES SYSTEMS INTEGRATION Bytes Systems Integration has extensive experience and expertise in the design, implementation and operational management of customised IT solutions through the integration of hardware and software systems from global technology leaders. Our mission is to deliver sustainable value to all our stakeholders, through the convergence of the best IT innovations, systems and people.

THE DIFFERENT TYPES OF RISKS Pure risks (insurance risks). This is when the status quo is maintained if the risk doesn't happen, or there is a loss when the risk does occur. Pure risks generally account for around a small percentage (say 10-15 percent) of the risks facing an organisation.

Incidental risks. Examples of this kind of risk would be interest rates, foreign exchange rates and even rates of taxation. In a bank, for instance, these risks would be core.

Fundamental risks. These risks are generally outside of the control of the organisation and tend to affect the economy as a whole.

An example would be a recession, terrorism, rioting or war. These risks can also have both a positive and negative outcome, depending on the circumstances and the approach of the organisation.

Speculative risks. These are generally regarded as the "profit and/or loss" risks, which businesses and their executives must take in order to grow and develop their businesses.

Indwe Risk Service FEATURE

2280 SSP SAMag Ad.pdf

1

2011/09/02

9:25 AM

An agile business partner keeps you ahead of the curve Providing agile solutions to over 130 insurance companies in over 50 countries, SSP is the flexible partner that adapts with you to help you achieve your best.

C

M

Y

CM

MY

CY

CMY

K

For insurance technology solutions talk to us.

www.ssp-worldwide.co.za

GRIndROd

I n T ER m O da L

( P T Y ) LT d

42

www.southafricamag.com

Grindrod Intermodal (Pty) Ltd FEATURE

South Africa Magazine profiles Grindrod Intermodal, a division of Grindrod Freight Services, which provides complete landside logistics solutions for containerised cargo.

By Ian Armitage

G

rindrod Intermodal provides a complete service in the movement of containerised cargo, from receiving the cargo, to storage, packing and onward distribution by road/rail to final destination. The company was incorporated in 1999 and is based in Johannesburg. It operates as a subsidiary of Grindrod Ltd. “We are a one-stop service provider for the movement of containerised cargo,” Grindrod Intermodal’s CEO Jan Nair told a South Africa Magazine researcher in August.

“We provide movement of containerised cargo, from receiving, storage, packing, and onward distribution by road or rail to final destination,” he added.

This was achieved, Nair said, by consolidating four businesses within the Grindrod Group – Cross Country Containers, CMC Grindrodm Grindrod J&J and Unitainer.

“The cost of the supply chain contributes significantly to the final selling price of the product. It is for this reason that many South African companies, in order to remain competitive, have looked long and hard at ways to improve their supply chain efficiencies,” Grindrod’s website says, explaining the decision to merge four separate, yet complimentary businesses.

In bringing these four businesses together, Nair said, Grindrod Intermodal merged effective administration with strong operations.

Today Grindrod Intermodal has 500,000m² of depot and warehouse space.

“Greater supply chain efficiencies are now offered through the merger of a complimentary national infrastructure in the region of 500,000m², assets to the value of R150 million and resources including a dynamic team of 650 dedicated employees,” Grindrod’s website says. “Key Account Managers are positioned in the offices of major customers to ensure forward and backward integration,” it adds. www.southafricamag.com 43

Grindrod Intermodal (Pty) Ltd FEATURE

The Transport arm, formerly Cross Country Containers, where Nair spent 10 years prior to it becoming Grindrod Intermodal, specialises in the provision of inland transport and logistical services to the Freight Industry. Services include the “railage” of full and empty containers, covering all routes between Transnet Port Terminals and Transnet Freight Rail Terminals within South Africa and other Southern African destinations, a local cartage service in the major cities and a long distance service covering Southern Africa.

“The company’s operating system has been developed to produce all prescribed transport documentation required in the transportation of containers,” its website says. “The system enables the monitoring of the movement of containers between the respective delivery points and reporting progress to customers.”

The depot offering of Grindrod Intermodal (formerly CMC Grindrod), caters for “general purpose and reefer container handling, storage and husbandry requirements by highly skilled artisans and technicians”.

The Warehousing operation (formerly Grindrod J & J) offers “their blue chip client base high levels of operational expertise”.

“Also included is bonded warehousing, for a diverse range of cargo including wine, cars and general cargo. An integral part of the groupage operations is the inter depot road and bond transport, managed by Grindrod Intermodal operations,” Grindrod says.

Finally, Unitainer buys, sells and leases second-hand containers as well as refrigerated containers and offers storage, cleaning and pre-trip facilities for tank containers through its facilities close to the port of Durban.

It also specialises in converting secondhand marine containers into accommodation.

“Grindrod Intermodal has offices and facilities in Durban, Johannesburg, Cape Town and Port Elizabeth,” Nair, who took 44

www.southafricamag.com

About Grindrod Grindrod Limited is a South Africa-based holding company, engaged in the movement of cargo by road, rail, sea and air, through integrated logistics services. The Company operates in five divisions: Shipping, Trading, Freight Services, Financial Services and Group. Ship operating activities consist primarily of Unicorn Calulo products tankers, Unicorn Calulo bunker tankers, handymax and the Parcel Service. The Trading segment includes agricultural commodities, mineral commodities and marine bunkers. Freight Services includes Company's investments in ports, terminals, rail, seafreight and head office operations. The Financial Services include corporate banking, corporate finance, retail, asset management and treasury. On February 1, 2010, it acquired Sinpor Trading (Pty) Limited. On April 21, 2010, it acquired Fuelogic (Pty) Limited. On May 1, 2010, the Company acquired United Barge Owners B.V. and Associated Bunkeroil Contractors B.V.

The Newlyn Group congratulates Grindod Intermodal and thanks it for its support.

Umlaas Road, Durban, SA

The Newlyn Group wishes Grindod Intermodal continued success in all its future endeavours.

Briardale, Richards Bay, SA

Baront, Richards Bay, SA

Grindrod Intermodal (Pty) Ltd FEATURE

over the reins from Richard Foulds, the founder of Cross Country Containers, in 2007, said.

Asked what he felt was the secret to Grindrod Intermodal’s success, Nair added: “We believe in developing our people, recognising and rewarding individual strengths and making them accountable.

I have a philosophy that management should run the business as if it was their own and this is one of the secrets to our success. I certainly have every intention to continue this philosophy.”

And the future is bright.

The development of Richards Bat Terminal and investment at Maputo and 46

www.southafricamag.com

Matola ports represent an opportunity for Grindrod Intermodal to expand.

Also included is bonded warehousing, for a diverse range of cargo including wine, cars and general cargo

NEW CONTAINER WAREHOUSE In November, as part of a R50million development, Grindrod Intermodal opened a stateof-the-art, new warehouse in Bluff Road, Durban, designed to bring its full suite of services to the containerised freight industry up to “21st century standards”.

The new warehouse, which is 8,700 m², is next to a 7,000m² yard which is used for the handling of mining minerals and was purchased in 1970 by former Grindrod chairman Murray Grindrod senior for R450,000.

Taking you to new heights Toyota Forklift is the global market leader in materials handling equipment with a reputation for safety & efficiency, innovative research & development and quality products…

AND helping you reach new heights

TEL : +27 (0) 11 395 0600

EMAIL : toyota@eiegroup.co.za

The facility also has further open yard space for handling full and empty containers, a washing and repair workshop, and a weighbridge; it is also full SA Revenue Service (Sars) customsbond compliant.

The site was used to house Unicorn Lines’ empty container fleet.

“The new facility not only stores containers, but also offers a complex warehousing and distribution service that includes cross-dock and bonded warehousing operations, empty and full container depot services, nationwide and cross-border transportation by rail and road, and container sales and/ or leasing,” said Nair of what began as a relatively small in-house depot operation and has been transformed into the flagship Grindrod Intermodal development. END

WEB : www.eiegroup.co.za

LOCAL & LONG DISTANCE HAULS

CONTACT US FOR MORE INFORMATION: Tel: 031 8111 266\51 email: 0318111266@neomail.co.za

CUSTOmER dRIVEn SUCCESS

48

www.southafricamag.com

HFR Refrigerated Transport FEATURE

The story of a business reducing its size due to the recession is hardly news. however it is not every company that can turn this into a huge opportunity for success.Yet this is exactly what HFR Refrigerated Transport has managed to do, as South Africa Magazine finds out.

By Jane Bordenave

H

FR Refrigerated Transport is one of the leading specialist fresh and frozen foods transporters in South Africa and has been in operations since 1994. The company travels across the Republic and into the immediate cross-border areas of neighbouring countries.

Having begun as a sole proprietor with a single truck, the organisation now has over 100 temperature-controlled vehicles and is run by Managing and Financial Director Japie Meyer.

The company’s main cargo is fresh and frozen food. Much of this is fruits and vegetables produced in the Transvaal, however it also does work for the Botswana Meat Board and Sea Harvest. In addition, it also carries what is known as ‘dry’ cargo, which is often valuable items, such as electronic equipment.

While what is mainly a food haulage company may not seem like the obvious choice for

www.southafricamag.com 49

HFR Refrigerated Transport FEATURE

transporting these kinds of goods, HFR Refrigerated Transport has a distinct advantage over its less specialised competition: Locking boxes. Due to the need for complete temperature control, all its trailers are airtight and lockable, which provides an ultra-secure, if unusual, means of transport for valuable items.

The business currently has a fleet of 108 trucks, which it is augmenting to 157 over the coming year. However, not only is this not the first time this fleet has grown, but it is not the largest it has been in its history either.

Just a few years ago there were nearly 100 more. “Before the economic downturn, the company had expanded to the point where we had 254 trucks,” Meyer says.

“But when the crisis came, we had to rationalise our business and restructure everything, starting with cutting down to 108 vehicles.”

While for many firms this may have seemed like a disaster, for HFR it presented a real opportunity. “The nice thing about restructuring from such a big company to a smaller one is that we were able to keep the best assets and the best drivers and even our biggest clients. So the benefits not only outweighed the negatives, but they came through very quickly. We were also able to focus on customer satisfaction and our service levels now are even higher than they were in the past.”

Another major effect of this restructuring was to look again at efficiencies. “One of the main things that we have been able to do is change the engine differential on the trucks from 4.6 to 4.11,” says 50

www.southafricamag.com

Meyer. “Just by doing this, we have reduced our fuel consumption by between ten and 12 percent. This may not seem like much, but spread over a fleet of over 100 vehicles it really makes a difference.”

While the reduction in fleet size in the late 2000s allowed HFR Refrigerated Transport to streamline its business, it has now arrived at the stage where it is ready for growth again. “We have a very good reputation and are acquiring a number of new clients via word-of-mouth recommendation from our existing customers. Now, in order to maintain the high service levels that are expected of us, we need to purchase new vehicles to keep up with demand.”

So why not bring fleet numbers back up to 250?

“Since the restructuring, we are much sharper and more focused. We have been able to determine that, due to the efficiencies we have made we will be able to provide exactly the same kind of service with 157 trucks as we did with 254. This way we are able to keep vehicle numbers down while still keeping our customers satisfied,” Meyer says.

The 49 new vehicles the company is acquiring are made by Freightliner, the American truck manufacturer, which is part of Daimler. The reason

THE OLD SHANGHAI FIRECRACKER FACTORY 701228

FROM THE MOMENT I SIT DOWN, IT’S CLEAR WHO THE KING OF THE ROAD IS

All great drivers know that a Freightliner is one of the most affordable trucks to keep running at its best. It demands less from you so you can save more. This lady knows what she wants, but won’t put you through hell for it.

ANOTHER REASON WHY IT TAKES A LOT TO STOP A FREIGHTLINER. 0 8 6 1

1 1 4

0 0 1

•

FREIGHTLINER APPROVED DEALER

w w w . f r e i g h t l i n e r . c o . z a

Barrie Ferreira Sandown Motors Commercial Vehicle Centre Centurion

SINCE 1940

Tel: 012 621 7401 Fax: 086 683 1505

HFR Refrigerated Transport FEATURE

We were also able to focus on customer satisfaction and our service levels now are even higher than they were in the past

behind this decision was twofold: Firstly, the majority of the existing HFR Refrigerated Transport fleet (58 percent) is already made by Freightliner; secondly, it is a more economical choice than many of the European trucks. “The purchase of these new vehicles represents a very high level of capital investment for us, so we wanted to get the most cost efficient deal,” says Meyer, “When you consider that each of these trucks costs in the region of R2 million, you get a feeling of the level of commitment we are making. When you then find out that these trucks cost between R100,000 and R200,000 less than most other trucks and that they are also cheaper to maintain, the choice is obvious.”

The growth of the business is also providing new job opportunities. With the arrival of the new trucks, staff numbers are rising from 202 to 260 employees. “Roughly two-thirds of the people joining us are drivers,” explains Meyer. “We are something of a training ground for truck drivers.

Not only do we fully train our own staff, but we are also certified to train other company’s drivers. Once again, this is all part of the service levels that our clients expect, and we ensure that our employees 52

www.southafricamag.com

have the highest possible levels of training before they head out onto the road.”

While a single purchase of a large number of trucks such as is happening at the moment is obviously a strategically important process, truck lifecycle management is also key to the success of the business; each vehicle is kept in service by HFR Refrigerated Transport for four years before being sold on to the second-hand market. “Once again, this really comes down to our commitment to customer service levels,” says Meyer. “After four years in out application, the trucks will have around 800,000km on the clock. It is at around this point that trucks can be more prone to breakdown and while that may not matter as much if you are hauling non-perishable cargo, for us it is

GEA Refrigeration Africa - providing efficient transport temperature controls systems, accessories and service from 11 branches throughout sub-saharan Africa.

Thermo King - Truck and trailers units to suit all your fleet requirements, including the latest energy efficient T-series units, the SLX units and the clean, silent and reliable Cryotech temperature control systems. Full CryoTech systems move liquid CO2 from the refillable vehicle tank through a sealed evaporator coil inside the cargo space, thus cooling the coil. Temperature controlled air is circulated over the coil and through the cargo space. Finally, having extracted all the useful energy, CO2 vapor exhausts to the atmosphere (not into the cargo space). Heat, for defrost of the evaporator coil and temperature control, is generated by vehicle engine coolant or electric heaters (standby operation).

GEA Refrigeration Africa - your one stop mobile refrigeration partner, keeping your fleet moving!

a major concern.” Nevertheless, second-hand HFR Refrigerated Transport trucks are in high demand. “We maintain our trucks to the highest levels, so we are always able to get a good return when we sell them. In fact, we have developed such a good name for ourselves and such a strong relationship with dealers that they often approach us to see if we are looking to sell any of our vehicles.”

As far as the future is concerned, HFR Refrigerated Transport is taking a steady approach. “We are currently in a very comfortable position as a company,” Meyer concludes.

“We’re running very smoothly and our focus is not on expansion for the sake of expansion, but on increasing client satisfaction and raising the bar on service levels – that’s our driving motivation.” END

CAPE TOWN 14 Jig Avenue, Montague Gardens Tel: 021 551 9390 Fax: 021 551 9320 Email: mwatters@elitefibre.co.za JOHANNESBURG Cnr Kruger & Mimetes Street, Denver Ext 11 Tel: 0861 00 99 13 Fax: 011 615 8563 Email: frans@elitefibre.co.za

Our Superior Quality and Service Travels

DURBAN 30 Mahogany Road, Mahogany Ridge Tel: 0861 10 00 74 Fax: 031 700 6127 Email: khan@elitefibre.co.za

MANUFACTURER OF INSULATED TRUCK BODIES AND TRAILERS REPAIRS OF ALL TRUCK BODIES AND TRAILERS FUEL SAVERS

GRP INSULATED TRAILER BOX MANUFACTURED

FOR HFR TRANSPORT

www.elitefibre.co.za

Zimbabwe’s economy is slowly coming out of the wilderness, which is great news for firms like Unilever Zimbabwe who “toughed it out” during economic decline and hyperinflation.

By Jane Bordenave

O

ne is a lonely number, unless you’re Unilever, which has always prided itself on being a more customer-focused organisation than its competitors and was one of the first companies in Zimbabwe to market to consumers directly.

It produces some of the country’s best-known home and personal care products – Lifebuoy soap and Omo Washing Powder, to name just two – and was founded in 1946 by Unilever PLC.

54

www.southafricamag.com

Inspirational Zimbabwean businesswoman Nancy Guzha spearheads the company and is, rightly, very proud of the firm’s recent – and past – successes.

“When Unilever entered the Zimbabwean market in the 1940’s, we were one of the first companies to approach consumers directly,” Guzha told South Africa Magazine. “We sent representatives out to people’s homes with product samples and we were able to encourage the people of Rhodesia – as it was then known – to change their shopping

Unilever Zimbabwe FEATURE

habits by building familiarity with our brands. We were also one of the pioneering companies in a racially divided country to market across the racial divide and reach out to both black and white consumers.”

The strategy worked and was also one of the first examples of marketing seen in the country.

“Unilever Zimbabwe is now known as something of a ‘marketing guru’,” Guzha added. “Through the years, we have made a name for ourselves as something of a training ground in terms of marketing, but it can all be traced back to those early days of door-todoor techniques. It was by allowing consumers to really engage with our brands that we were able to grow into a successful business.”

By the mid 1990s, she said, Unilever Zimbabwe had reached the pinnacle of its success so far - with record turnover and employment figures.

Yet, before the end of the decade, its fortunes had changed dramatically due to the economic meltdown in Zimbabwe. In 1998, the Zimbabwean economy began to contract, resulting in negative growth from 1999 onwards. With the resulting decline in consumer spending, Unilever saw sales drop and was forced to close its factory.

But, it never left Zimbabwe.

“Even when we were operating at a loss, we never closed,” Guzha said. “Our view of Zimbabwe has always been that we are here for the long-term, that one day the economy would recover – and that day is now here.

Thanks to the high levels of education in the country and the generally high levels of per capita income, this country will always be a very good market for our products. This is why, even when inflation hit 6 million percent, we stayed put.”

This decision paid off. In February 2009, Zimbabwe moved to a multi-currency system, and the economy began to stabilise.

The crisis had taken its toll, however. “As with all enterprises in the country, we really www.southafricamag.com 55

Unilever Zimbabwe FEATURE

struggled at first as we had lost a lot of money,” explained Guzha.

Being part of a global organisation allowed the business to recover quickly.

“We received a great deal of help from Unilever sister companies – namely Kenya and South Africa, mainly in the form of guarantees, which allowed us to recapitalise our business.”

It was this pan-African network in particular that supported Unilever Zimbabwe through the difficult times. Despite mothballing its own factory due to prohibitive operating costs, the company was able to restructure its supply chain. It began importing ready-made products from Unilever South Africa and Unilever Kenya. Not only did this allow it to continue operating, it enabled Unilever Zimbabwe to regain consumer confidence and brand recognition.

“It was a brilliant, if risky, move,” Guzha said. “I was not in this position at the time, but the leadership who were here made all the right moves, which are now starting to pay off.”

In 2010, Unilever Zimbabwe re-opened its factory and begun producing its own products once again – a magnificent turnaround.

“Our plant is running, although it is operating at very low capacity,” Guzha 56

www.southafricamag.com

said. “Our strategy is to steadily invest for the future. We are investing back into our company, but we are doing so cautiously. The cost of restarting a factory that has been idle for several years to full working order is not an amount we are able to spend all in one go. Nevertheless, roughly 50 percent of our current turnover is derived from locally made products, with the other 50 percent is from sales of products imported from South Africa and Kenya.”

The steady recovery of the Zimbabwean economy is once again making it an attractive destination for foreign investors. However, Guzha believes that Unilever’s steadfast commitment to Zimbabwe has helped maintain its success in the country. “In the 2009/2010 financial year, our business grew by over 100 percent. Of course, the recovery of the economy played a significant part in this and GDP is also growing at around eight percent in 2011, but the importance of us not leaving Zimbabwe should not be underestimated.

“No matter what happened in the economy, consumers continued to buy our brands such as OMO detergents,Sunlight washing-up liquid and Stork margarine.

We are seeing ever increasing demand and now that our factory has come back online, our products are becoming more widely available locally. We remained in the country and maintained brand recognition amongst consumers and we are now reaping the benefits of that decision. Anyone knows if you go through a hard time with someone, your relationship always strengthens. Our brands are that partner to Zimbabwean consumers and customers – we have an infinitely stronger relationship.”

ISO 9001:2008 CERTIFIED

QUALITY, LOCALLY MANUFACTURED PUMPS AND PUMP ACCESSORIES. Including Borehole, Industrial, High head pumps, Mono Forcelift hand pump and the new Tiger treadle pump.

HARARE OFFICE & FACTORY 101 Kelvin Road South, Graniteside P. O. Box 2049, Harare, Zimbabwe.

Tel 263-4 771180-83, 756831-5 Fax 263-4 771179 E-mail sales@monopumps.co.zw BULAWAYO OFFICE 131 Jason Moyo Street P. O. Box 213, Bulawayo, Zimbabwe Tel 263-9 66221-2 889941 Fax 263-9 66221-2 E-mail gmarozva@monopumps.gatorzw.com

www.monopumps.co.zw

Unilever Zimbabwe FEATURE

Having winning brands also helped.

“Consumers continued to be loyal to our brands even when they were not widely available simply because Unilever brands make people’s lives better. Our vision as Unilever is that we work to create a better future everyday which, simply put, means our brands help people to look better, feel better and enjoy life more everyday. To do this, we have to understand our consumers intimately and we are relentless in maintaining a close and mutually beneficial relationship with our customers.”

Unilever is as committed to recruiting local talent and training the local workforce as it is to doing business in Zimbabwe. Guzha, herself was in fact recruited abroad. “At 18, after I finished my A-Levels in Zimbabwe, I moved to the UK for five years. There I studied a BTEC in Agriculture followed a BSc (Hons) in Agricultural Economics and Management at the University of Reading. In my final year of studies, I was recruited by Unilever Zimbabwe at one of the roadshows that they hold in order to try and encourage African talent to return home as business leaders.”

Once she returned home, she entered into a graduate training programme, before joining the company’s marketing department and working her way up.

Guzha is not unusual in this respect, though.

Unilever is committed to discovering native African talent and preventing ‘brain drain’, including bringing people back from abroad.

And training is not just for people entering managerial programmes.

“We believe in the need to invest in and train every single person working for us. This is because, while a person may be doing a lower ranking job today, in six months or a year, they may be eligible for promotion.

Unilever is a unique employer in that we recognise and nurture both performance necessary to deliver today and potential critical to keep delivering in the future– and we invest in both. So we offer both general and career-path specific training.”

58

www.southafricamag.com

ABOUT UNILEVER 160 million times a day, someone somewhere chooses a Unilever product. It is a world-leading brand, a top maker of packaged consumer goods, and its products are sold in about 180 countries throughout Africa, Asia, the Americas, and Europe. The company’s offerings span several categories, including dressings and spreads; ice cream and beverages; personal care; and home care. Unilever’s vast portfolio boasts a dozen brands that each ring up billions of dollars annually. Best sellers include Hellmann’s mayonnaise, Knorr soups, Lipton tea, Dove and Lux soaps, and Sunsilk hair care.

As far as the future is concerned, the main focus is growth and recovery. Strengthening of the Zimbabwean economy is expected to continue, and Guzha expects to see Unilever Zimbabwe mirror its fortunes, but to continue growing ahead of both GDP and competition.

“We have a well educated populace and a lot of natural resources and mineral wealth that are not yet being fully exploited, both of which will help Zimbabwe grow as a country.

With regards to our growth as Unilever, it is unlikely to continue at 100 percent, however we do expect it to be upwards of 70 percent – not just because of recovery of the economy, but also because we intend to continue being better and faster at recognising and exploiting opportunities in the marketplace.

“It is our commitment to Zimbabwean consumers and customers that has seen us through even the toughest times and it is a commitment that will continue well into the future.”

There is much written in the press about Zimbabwe. Now is a time for optimism and positives. Life there is changing. It is stabilising economically, has ditched its currency in favour of a more stable multicurrency system, and survived the worst period of hyperinflation in modern history. It is now a “hot pick” for savvy investors. END

t… h g rei f ur o y r o it f a ’t w n a c ou y n he W

Allen Wack and Shepherd Global Freight is a leading player in the shipping and freight forwarding industry in Zimb Zimbabwe, proudly offering preeminent and reliable services in customs clearing, forwarding, imports and exports and warehousing for air, road, rail and sea. We have a strong global network that allows us to reach into all major ttrading destinations.

Allen Wack and Shepherd Global Freight Contact No: +263 4 487970-6 Fax No: +263 4 487979 Email:all@aws.co.zw

is proud of being the supplier of choice for

and fully supports Unilever Zimbabwe’s Managing Director’s plans for continued growth and development.

Z a m b ezi ranc h ing and C ropping Privately owned Zambezi Ranching and Cropping is Zambia’s largest mixed farming operation. South Africa Magazine talks to Managing Director Graham Rae.

By Ian Armitage

60

www.southafricamag.com

Zambezi Ranching and Cropping FEATURE

G

raham Rae is one of the most fascinating people I’ve ever had the pleasure of interviewing.

He knows farming. It is what he does.

Rae, a hugely successful commercial farmer, used to do it in Zimbabwe, a country he was born, grew up in and loved.

Today he struggles to think of going back to the place where his grandparents were born in 1910.

Rae, who now lives in neighbouring Zambia, is one of several hundred white farmers who fled Zimbabwe because of President Robert Mugabe’s campaign to redistribute whiteowned farms to landless blacks.

He said militants from Mugabe’s ZANU-PF party tried to kill him before he left in 2001. “[It] was all down to survival,” Rae says of his decision to leave.

The Zimbabwean government launched a programme of land seizures in 2000, stripping white farmers of their property, a move that was almost wholly responsible for the near total collapse of a once thriving commercial agriculture sector, says Rae. He used to own a 1,100 hectare farm in Shamva, Zimbabwe, which boasted the largest private dam in Zimbabwe that also serviced 56 other black and white farmers in the area.

With his wife Bernadine and three children, he left after numerous threats and a tip-off that he could be killed.

Now, they live happily on Penyaonse Farm, perched on a

hilltop, 45 km northeast of Zambia’s capital Lusaka.

“Listen, it has been very much Zambia’s gain this whole thing,” Rae says.

“Zambia has prospered and yes I would say that Zimbabwean farmers like me have played a role, but so too have farmers from elsewhere, like South Africa.

“I think what has happened in terms of Zambia’s growth can be attributed to the strong leadership that has been shown in this country,” he adds.

Rae says at his farm they have increased crop production considerably and created many new jobs; farmers like him have also introduced new farming methods and improved soils to enhance yields, while supporting families through outreach programmes and opening a medical clinic.

I think what has happened in terms of Zambia’s growth can be attributed to the leadership that has been shown in this country

www.southafricamag.com 61

Zambezi Ranching and Cropping FEATURE

ZSIC GENERAL INSURANCE

Zambezi Ranching and Cropping, a huge farming network, has medical clinic for workers and communities nearby, he says.

“When we first moved to Zambia, only 100 hectares of Zambezi Ranching & Cropping Ltd was cultivated but we’ve changed that, putting in hectares of white maize, seed maize, wheat, soya beans and tobacco,” explains Rae. “We are now cropping 4,000 hectares with room for expansion.

“Tobacco production has increased massively in Zambia since I arrived; there are 2,500 workers compared to 150, and the number of beef cows has grown to almost 11,000,” he adds.

62

www.southafricamag.com

ZSIC General Insurance limited has been very instrumental in designing an array of packages in the Agriculture Insurance sector which include; crop insurance, livestock insurance and the farm pack. These are very interesting packages however, the farm park is one of more eye-catching towards most Zambian farmers; this is a farmer packaged insurance cover which brings all the farm assets in one policy with one renewal and one premium.

It also gives an extra incentive in the form of discounts. The following classes are covered in the farm pack: 1. Fire & perils – Buildings and contents 2. House owners – Dwelling houses 3. House holders – Household goods 4. Employers Liability – Legal Liability from employers 5. Public liability – Legal liability from the public 6. Money – Money in safe or transit 7. Livestock – Death or theft of animals 8. Personal accident – Personal injury or death 9. Deterioration of stock – cold room failure 10. Plant all Risk – on farm plant and machinery 11. Motor – Motor Vehicles 12. Goods in Transit – Goods to and from the farm A farmer qualifies to take up a farm pack policy if he is using up a minimum of three sections of the risks already indicated.

“Since our arrival, tobacco output has increased significantly and more jobs have been created. There were approximately 1,000 to 1,200 breeding cows and around 17,000 hectares of land when we got here; we’ve now expanded the land holding up to 33,000 hectares. We put up silos; we have expanded our cattle herd to around 11,000 head; we are doing chickens – we do 210,000 chickens every six weeks - and we’ve put in 1,500 hectares of irrigation. We have revamped all the buildings, staff housing, built new houses, and built new storage facilities, so we’ve done a hell of a lot.

“These days we are cropping huge amounts per annum and selling a lot of livestock.”

It is a fantastic growth story.

During the 2010/11 season, Zambezi Ranching and Cropping supplied 2,225 head of cattle of Zambeef, Zambia’s biggest agricultural firm with a revenue of K770.5 billion. www.southafricamag.com 63

He thanks Carl Irwin, Francis Grogan and Adam Fleming, for their part.

“It has been a great journey and obviously we are hungry for more.”

Rae takes pride in being part of Zambia’s agriculture sector and owns a stake and management rights in Zambezi Ranching and Cropping.

So what next for him, the firm and the ZRC Farms?

Well, Rae, for one, plans to cut tobacco output, because of high production costs.

Tobacco output in Zambia reached 40 million kg in 2010.

Farmers are also growing maize and other cash crops.

“The tobacco industry certainly faces challenges and has peaks and troughs,” Rae says. “Tobacco is increasingly costly to produce. Price increases often cause consumers to stop smoking all together. If volumes fall in countries where tobacco sales are the highest, this could spell doom for the industry. For that reason we have to start thinking about diversifying and at the moment we are looking at potatoes, onions and canned tomatoes.”

64

www.southafricamag.com

Tobacco production has increased massively in Zambia since I arrived; there are 2,500 workers

Zambezi Ranching and Cropping FEATURE

Growing potatoes could be an answer, he stresses.

“I’ve got a colleague who runs a potato distribution business and he is forecasting a 20 percent growth per annum on potatoes,” Rae says. “They [the distribution company] are utilising about 1,600 to 2,000 tons of potatoes a month; of that Zambia is producing about 800 tons. So there is a huge gap for expansion.

“On onions, most of the onions are imported out of the Eastern Cape and there is a market there, if we can learn to grow the right varieties and store them properly. There is also opportunity for supplying both crops into the Democratic RepuC. Potatoes have been flown / air freighted into the DRC.” A new an exciting development is that of canning tomatoes.

“That is an initiative with the global conglomerate Glencore. They have come here and are looking at putting some canning plants in. We are in trials at the moment,” Rae says.

“If you look at potatoes, tomatoes and tobacco, they all come from the same family, so you can’t grow them together because of the common diseases,” he cautions.

Regardless, these are optimistic times.

“Cropping is an exciting part of our business, with lots of opportunities,” Rae continues. “We’ve probably another 800 hectares of irrigation development that we can do, while we are always looking to improve our methods and invest in technology. We look too at maintaining our eco-systems and environment. That is vital. Anything we see as environmentally non-friendly we have to look at moving away from it; we are looking at pesticides, to give you an example, and fertilisers.”

Rae also wants improvements on the ranching side of the business and an increase to carrying capacity. “When you look at Brazil, it has the world’s largest commercial livestock herd.

Zambia has a way to go!”

A concern he has is that the farming population is getting older and older.

“At the last Zambian National Farming Union annual conference, the president raised this issue with the president of the country and said that farmers were getting older and older and something had to happen to make it more attractive for young Zambians to go into farming.

Most of the younger generation drift off into the towns and cities for the bright lights,” Rae says.

Zambia remains one of the most politically stable countries in the Southern African Development Community (SADC) and Africa as a whole. There has been democracy since 1991 and the country is likely to boom for many years to come. END PO Box 350231 Lusaka - Zambia Cell: 0977 791387/8/9 0978772551 Telefax: 0211 273111/118 Email: sales@irritechzm.co.zm

VALLEY CENTRE PIVOTS DRIP IRRIGATION CONVENTIONAL OVERHEAD IRRIGATION Performance.

Period.

PUMPS & PIPES

S A h orseracing company see k s

i n ter n atio n a l

expansion Phumelela Gaming and Leisure Limited, which is listed on the JSE, operates horse racing and tote betting in seven of South Africa’s nine provinces. The company has transformed South African horseracing since its inception in 1998 and its plans for the future include growing tote betting on other sports like soccer and its international business.

By Ian Armitage

66

www.southafricamag.com

Phumelela Racing FEATURE

T

here is at least one race meeting every day of the year in South Africa with the exception of Christmas Day. About 440 race meetings are held annually and some 250 of these are held at Phumelela racecourses. The other 190-odd are run in KwaZulu-Natal and the Western Cape, the two provinces in which horseracing and tote betting is operated by Gold Circle.

Phumelela was formed in 1998 as part of a corporatisation process that saw the three racing clubs in Gauteng, the engine room of the South African economy, transfer their assets to the new company. In the following years, horseracing in the Northern Cape, Free State and Eastern Cape joined Phumelela, which was listed on the JSE in 2002.

Phumelela has installed floodlights at Turffontein, its flagship racecourse in Johannesburg, and there are also lights at Greyville, Gold Circle’s premier racetrack in Durban. Collectively there are 42 meetings under lights annually at these two venues.

All racing in South Africa is run on the flat and the sport is nearly as deeply rooted in the national consciousness as in the UK, for example, or France.

Phumelela and Gold Circle work closely together in many facets of horseracing and all tote bets in the country are combined into single national pools under the banner of TAB, the betting division of Phumelela and a brand well known to horseplayers in South Africa.

There are over 400 TAB outlets and two telephone betting centres. Bets can also be taken through mobile phones utilising WAP and USSD technology, and on the Internet.

Phumelela’s tote betting system is also capable of

commingling internationally and hosts the global tote pools on the Dubai International Racing Carnival and Dubai World Cup itself annually.

South Africa has been sheltered from the global recession, but has not altogether escaped and the gaming sector has felt the pinch over the last couple of years.

Horseracing in many other countries has been forced to reduce the number of race meetings and/or prize money because of the economic downturn, which has obviously diminished revenue, but Phumelela is weathering the storm.

Betting on sport is one of the fastest growing forms of gambling globally and Phumelela operates three tote bets on soccer – Soccer 4, the hugely popular Soccer 6 and the recently introduced Soccer 10. Total tote turnover on the three bets during the current soccer season is expected to reach nearly R400 million.

The company also recently launched Rugby 5, a tote bet on rugby, to coincide with the start of Rugby World Cup 2011.

“Our soccer bets have brought a sea of new faces into the TAB arena, some of who now bet on horseracing as well, and are proving a valuable new source of revenue,” says Phumelela’s GM Marketing & Communications Robert Garner. “Like our soccer bets, Rugby 5 will bring many more new faces into the TAB environment and we are aiming to launch tote bets on other sports like cricket in the months ahead.

“Advances in technology are also facilitating betting through electronic channels like mobile phones and this will assist us in recruiting new customers and driving betting turnover on horseracing and sport,” Garner adds.

About a quarter of Gold Circle’s annual revenue comes from imported product

www.southafricamag.com 67

Phumelela Racing FEATURE

Phumelela is also the major shareholder in Betting World, a corporate bookmaking chain in South Africa that is well placed to capitalise on the huge increase in betting on sport.

While tote bets on sport will assist in growing Phumelela’s domestic business, there are also many opportunities for growth internationally.

Several years ago Phumelela and Gold Circle entered into a joint venture titled Phumelela-Gold Enterprises (PGE), which is managed by Phumelela.

PGE is responsible for all South African racing’s international dealings and sells South African racing as a supplementary betting product to overseas countries seeking additional betting opportunities for their customers, as well as importing international races for TAB clients to bet on. Currently, South African races are transmitted daily to more than 20 countries.

It’s true to say that TAB customers enjoy one of the best horseracing menus in the world.

PGE imports the best races from numerous countries daily, including the UK, Australia, Dubai, France and Singapore.

“About a quarter of Gold Circle’s annual revenue comes from imported product,” says Gold Circle’s COO Graeme Hawkins, who recently spoke with South Africa Magazine.

“This includes Australian, UK, French or Singapore racing that we bet on locally, as well as what we sell to those countries.”

In April, PGE and Australian company Tabcorp announced what they called an “important development in their strategic relationship” with the two partnering in an international totalisator gateway business.

“The relationship will take the form of an incorporated joint venture known as Premier Gateway International (PGI),” the companies said in a release. “Tabcorp is the first international tote operator to accept the invitation to join PGE in the gateway business.”

Tabcorp is Australia’s premier gambling and entertainment group and is a market leader 68

www.southafricamag.com

in wagering, offering tote odds, fixed odds and sports betting, as well as the operator of the two largest tote pools in Victoria and NSW. Rian du Plessis, Phumelela Group CEO, said he was delighted by the deal. “We are enthusiastic about entering into this strategic relationship with Tabcorp and look forward to working with them in developing the Isle of Man gateway to its full potential. The gateway will offer different tote operators the ability to comingle tote pools with different totes through one software solution as opposed to having to develop a variety of solutions.”

The variety of systems and technologies utilised for tote betting in racing jurisdictions across the globe is a major hurdle to global co-mingling. This is due to the significant reciprocal investments in time and resources, which are required to co-mingle tote pools.

A global tote gateway, such as PGI, expedites and facilitates co-mingling because once a tote system is connected to the gateway, it will have access to other tote systems around the world that are already linked to the gateway.

David Attenborough, Tabcorp`s Managing Director of Wagering, said: “Tabcorp welcomes the opportunity offered by PGE to be the first major international wagering company to participate with them in the gateway business. Global co-mingling has historically been expensive and protracted.

This gateway business offers tote operators more efficient and less costly access to other global totes.”

The PGI gateway will enhance the sale of South African racing globally because punters in more countries will be able to bet directly into established TAB pools in South Africa, which will increase the product’s appeal.

“We are expanding aggressively abroad and are constantly seeking new opportunities through PGE,” says du Plessis. “In the future we are looking for international operations to account for half of our profits and we are positioning ourselves as a major player on the emerging global 24/7 horseracing circuit.” END

Increase productivity Envision success Accelerate growth

Sage ERP Accpac is an advanced accounting application built on a worldclass, object-orientated and multitiered architecture. It’s designed for companies of all sizes and is the foundation for an integrated set of end-to-end business management applications.

AccTech Systems, proud supplier of Sage ERP Accpac to Phumelela for the last 12 years.

Your Payroll & HR Solution...

Geared for your requirements

www.praxima.co.za info@praxima.com Tel: +27 (0)87 353 4140

P io T rans loo k s to

end strikes Rea Vaya reached a major milestone in February when the Taxi Operators Investment Companies formally took control of the BRT’s Bus Operating Company - PioTrans (Pty) Ltd. The firm has faced several challenges since.

By Ian Armitage

70

www.southafricamag.com

PioTrans (Pty) Ltd FEATURE

I

n 2006, Johannesburg City council decided to move to a fully-fledged Bus Rapid Transit (BRT) system called Rea Vaya – something we’ve covered extensively in South Africa Magazine.

High-level buy-ins and partnerships, especially from the minibus-taxi industry, made its implementation possible and it began as a starter service with 40 buses on 30 August 2009.

It has been improved significantly since and has been well received by commuters.

“Rea Vaya reached a major milestone in February when the Taxi Operators Investment Companies formally took control of the BRT’s Bus Operating Company - PioTrans (Pty) Ltd. It was another first in a landmark project,” Eric Motshwane, spokesperson for PioTrans, told South Africa Magazine when we spoke to him in August. “Rea Vaya is the first BRT system in South Africa; in the beginning taxi operators, Metrobus and other public transport operators worked alongside each other in a congested, mostly informal landscape. With Rea Vaya many private vehicle users switched to the bus.”

The main challenges for public transport in Johannesburg were that the poor lived far away from work and so had to spend more money on transport; congestion on roads resulting in longer travel time; congestion in the inner city; lack of access for disabled commuters; that the government historically had put very little money towards public transport; and problems with regulation of the large and broad based taxi industry.

PioTrans is Rea Vaya’s first bus operating company. We are committed to delivering a transportation service that is safe, reliability, regular and clean. Those are the cornerstones of our operation, always respecting the environment

www.southafricamag.com 71

PioTrans (Pty) Ltd FEATURE

Rea Vaya changed all that.

“It is a huge transformation, a one of a kind, visionary and it has triggered a massive shift among the members of the informal transport sector by developing and providing viable and practical solutions,” Motshwane said.

International experience has shown that a BRT system can attract between 10 and 20 percent of private car users to public transport, he added.

“It has a big socio-economic impact,” Motshwane explained.

Nine Taxi Operators Investment Companies, owned by over 300 taxi operators, are now in charge of PioTrans (Pty) Ltd and have a 12-year Bus Operating Contract - they also scrapped 585 taxis in order to be able to become shareholders of the company.

“PioTrans is Rea Vaya’s first bus operating company,” Motshwane stressed. “We are committed to delivering [a] transportation service that is safe, reliability, regular and clean. Those are the cornerstones of our operation, always respecting the environment.”

We spoke to Motshwane as PioTrans filed for a second interdict to end a strike amongst its drivers, which started last month.

The strike started on August 1 and PioTrans went to court to get an urgent interdict for workers to return to work on the morning of August 8, but the workers continued to strike.

It went again on September 5.

“We are hoping for a favourable court ruling. We hope the judge will understand that providing transport for the commuters is in his hands and grant us the interdict,” Motshwane said prior to the hearing. “The bus driver strike has left thousands of passengers stranded for more than a month and we are negotiating with the striking workers.”

The initial strike started without notice, leaving about 40,000 passengers stranded.

“We are doing everything in our power to convince the courts that they should agree to the interdict. If the courts side with us then it would mean that, by order of the courts, the employees would have to comply and return to work.

“That would bring an end to the strike and would usher in a new process that if there were any complaints or issues then they could be addressed.”

Unfortunately, PioTrans lost in court. Striking BRT 72

www.southafricamag.com

We have approximately 35,000 passengers a day.

We are looking to double the number of passengers with time including the potential to have new buses and also extend routes

bus drivers have now vowed not to back down.

The bus drivers are demanding an increase in their salaries, plus medical aid and a provident fund.

Both PioTrans and the bus drivers’ union, the South African Municipal Workers Union (Samwu) are trying to negotiate some sort of deal.

“The salaries paid by the company are in the average of the industry and those that the union is requesting represent a 300 percent increase,” says PioTrans CEO Victor Cordoba. “Yes, we lost at the court but it was for a technicality and at no point did the laborr court reject the reasons of the company.

“The company, drivers representatives and the union are

SPC SERVICES STANDARD PEST CONTROL

10 Thor Street Ennerdale Ext 1, 1830 Tel no: 082 978 9469 anvernagel@gmail.com

Specialising in pest control, Weed control, Garden maintenance services, Treatment of all Industrial and Commercial buildings, Restuarants, Domestic houses, Busses, Churches, Shopping complexes, Conference centres, Shops etc.

All staff are registered with the Department of Agriculture.

SERVICE IS OUR PRIORITY

having a mediation process that hopefully with end the strike.”

For now however there is no way of knowing when the bus service would return to normal.

“PioTrans is a real first. We want to get it back to normal as quickly as possible,” Motshwane concluded.

“We have approximately 35,000 passengers a day. We are looking to double the number of passengers with time including the potential to have new buses and also extend routes. There are further phases for Rea Vaya due to come in and the system is to expand.

“You have to remember that here we transformed the industry from informal to formal.

“Despite recent struggles, it has been a great success.” END

Fleet outsourcing MADE EASY

FleetAfrica is a leader in the fleet management and full maintenance leasing industry.

By Ian Armitage

74

www.southafricamag.com

FleetAfrica FEATURE

T

he benefits of outsourcing your fleet are clear and the theory simple.

If something isn’t your area of expertise, then get in expert help from outside to do it, pay for what you need, and avoid the costly long-term management issues of having additional in-house staff focusing on non-core business issues. Indeed, partnering with the right service provider will lead to cost and operational efficiency gains and allow you to focus on your own areas of expertise, which, in turn, means improved business performance.

“At Fleet Africa we strive to provide our customers with customised valuebased fleet management solutions. We are a one-stop solutions/service provider,

integrating all fleet logistics and related supply chain activities for all target markets/segments at local, provincial or national government level, as well as in the private sector. Our solutions are designed to be flexible and scalable, to suit our client requirements… delivering cost efficiencies and integration into the client’s value chain,” says Kamogelo Mmutlana, CEO, FleetAfrica (Pty) Ltd. Mmutlana says that FleetAfrica is a “specialised fleet management company” at the forefront of the full service leasing industry in South Africa. A typical FleetAfrica customer is a “big fleet owner” and the firm has some notable success stories, like the City of Johannesburg.

“We manage some of the largest fleets in the country for government, parastatal and private-sector companies.

We currently have more than 46,000 vehicles under management, ranging www.southafricamag.com 75

FleetAfrica FEATURE

from motorcycles and cars to materials handling equipment, waste compactors, fire engines, and ambulances.

“Within our first few years of operation we secured the then largest government fleet outsourced contract, City of Johannesburg,” Mmutlana says. “When we took on that contract, they had approximately 7,000 vehicles with an estimated 40 percent utilisation.

Through our engagement, we were able, within the first three years, to rationalise to about 4,500 vehicles and achieved improved utilisation of about 98 percent and 76

www.southafricamag.com

Our solutions are designed to be flexible and scalable

average availability of 95 percent.”

Another success story is the R146 million per annum contract with the Eastern Cape provincial Department of Transport, which outsourced vehicle management to FleetAfrica in 2003. ”What is our value proposition? Onestop shop solution, incorporating the specifying of vehicle models, procurement, licensing and registration, vehicle in built programme, management of fuel, insurance, utilisation, maintenance and services, contract compliance,

A NISSAN

Pick-Up for Any Application For an astonishing 7 decades, Nissan has provided an impressive range of light commercial vehicle (LCV) solutions globally. The company has been catering to the demanding needs of the SA market for an astounding 50 years, ranging from private individuals, small and medium fleets, to large fleet organisations like, Fleet Africa, UTI, Imperial, and the list goes on. It is therefore no idle boast for the company to claim to have the most comprehensive range of LCV offerings available in the country, boasting a position of leadership through full LCV market coverage!

The Nissan commercial brand offers a proud heritage, proven capability and excellent value.

Nissan SA literally covers every LCV niche, and has the ideal product for each and every individual requirement. Beginning with the half-ton NP200, the replacement for the legendary 1400 bakkie, the line-up then moves up to the hardest working all-South African NP300 1-tonner, the ideal dual usage Navara Double Cab and kingkab range and the irrepressible Patrol Pickup to cater for every need precisely. having a model for each and every commercial requirement is not the only reason why Nissan remains a firm favourite for local buyers. Each vehicle also proudly upholds the legendary Nissan toughness and reliability, and owners can rest assured of getting years of gruelling work from any model bearing a Nissan badge. Each of these vehicles proudly upholds the Nissan brand philosophy to supply safe, innovative, reliable and cost effective vehicles that meet the unique needs of commercial customers as well as a strong national dealer network.

Providing the best value proposition hinging on excellent cost of ownership and running costs is the golden thread in Nissan’s line-up with a range comprised of various specification grades to cater to specific customer requirements.

in the EU test regime for a CO2 production of just 140g/km! These fuel-sipping engines, combined with great styling and sporty interior finishes higher up in the range, make for the perfect workhorse and leisure offerings sort after in the half-ton segment.

NP200

While the NP200 boasts a class-leading load capacity of 800kg as well as the longest and widest load bed in the half-ton class, it retains the infectious fun-factor which helped create a legend of the original 1400. It’s an exceptionally hard worker which transforms at the whim of the driver to a stylish, trendy, and universally-loved icon, genuinely enjoyable to drive.

The Nissan NP200 has stepped quite comfortably into the big shoes of its predecessor, the Nissan 1400 Bakkie. The Nissan NP200 sells in excess of 1000 units per month, making it an incredibly strong contender in the half-ton segment, close on the heels of the popular Corsa Utility.

The NP200 is available in economical yet great performing engine variants - 1.6-litre 8V and 16V and the punchy 1.5 dCi motors. The petrol 8V and 16V engines deliver impressive outputs of 64kW and 128Nm and 77kW and 148Nm respectively with fuel consumption at a frugal 8L per 100kms. The diesel motor produces 63kW at just 3750 rpm, as well as a beefy 200Nm of torque at a relaxed 1900rpm, while returning a meagre 5.3l/100km The Nissan Navara Double Cab

If it’s a stylish, trendy vehicle while at leisure as well as a class-leading yet safe load-carrier during the work hours that you need, the NP200 is the right answer, every time. If it is just pure peace of mind that you are after, the Nissan NP200 is the only option in the segment offering a class-leading 6 year/150 000km warranty!

NP300

The Nissan NP300 Hardbody Single Cab

Another local legend, the NP300 hardbody is available in 15 model variations covering the full spectrum of 1-ton customer needs, from workhorse to hi-Rider, incorporating both petrol and diesel power trains, as 4X4 and 4X2, in both single- and double-cab variants.

The Nissan NP300 hardbody range includes a powerful 2.5-litre diesel engine derived from the aspirational Navara model. This mill is a high-tech common-rail turbo diesel power plant, producing 98kW at 3600rpm and a stonking 304Nm of torque at 2000rpm, in the process making hauling significant loads easier, and more economical so.

As well as the mountain of torque to make light of even the toughest of working conditions, the latestgeneration technology employed in this 2.5-litre motor offers the smoothest acceleration and excellent fuel economy, rated at just 8l/100km in the EU test cycle despite the enticing amount of twist on tap. The range also includes competitively priced 2-litre and 2.4-litre petrol models offering great value, reliability and durability.

The NP300 range is designed with the safety of occupants as a key consideration, beginning with the outright strength of the ladder frame chassis on which this 1-tonner is built, the side-impact protection bars, cleverly-designed crumple zones to absorb the energy from frontal impacts, and all grades from SE and up come with dual airbags fitted as standard equipment and last to last but not least – absolute stopping power comes standard on selected models across the range with ABS*.

Continuing in the well-deserved tradition of strength from the Nissan brand, the NP300 comes with a reinforced load bed to offer durability that leads the 1-ton segment, and distinguishes itself from its competition by offering all of these desirable features at exceptionally competitive price points. Customers can also rest assured that the NP300 hardbody offers some of the most competitive running costs for fleets thanks to the proven technology underpinning the range.

Navara

The Nissan Navara offers a comprehensive line-up from kingkab to double cab body styles. The range consists of entry, mid and high grade double cabs in 4x2 and 4x4, as well as entry grade kingkab models in 4x2 and 4x4; ensuring that there is a Navara suited to your needs. And if the most powerful diesel bakkie on the market is what you’re after, then the Navara 3.0L V6 Turbo Diesel is just for you. The Navara certainly stands above the rest being the first 1-tonner with a V6 Diesel engine, as well as some other segment-firsts like SATNAV, reverse camera, ABLS (active brake limited slip) and VDC (vehicle dynamic control), to mention but a few.

The Nissan Navara KingKab

The Nissan NP300 Double Cab

Still packing that unmistakable Navara styling, generous luxury addenda particularly in the higher specification grades, and Nissan strength and reliability, the Navara line-up offers customers an attractive option in the 1-ton bakkie market.

Patrol Pickup

If you need the toughest, most undauntable pick-up available on the market today, a vehicle which looks, feels, and drives in a manner commensurate with this bold claim, the Patrol Pickup will leave you wanting nothing more whatsoever – and has been doing this for the last 60 years globally.

So if you need an LCV for your growing or established business, a vehicle in the Nissan commercial range has the ability to satisfy your needs, perfectly. *Available from October 2011

FleetAfrica FEATURE

defleets, replacements and disposals of out of contract vehicles.”

According to Mmutlana, FleetAfrica has achieved significant savings and improved service offerings for Government through the management of those contracts. Economies of scale play a major role in what FleetAfrica is able to offer. “We are focused on acquiring big fleet clients similar to City of Johannesburg and Eastern Cape Provincial contract, as well as big corporate clients such as Premier Foods, South African Post Office, Nampak and GM.” Of course, these have been challenging times.

But FleetAfrica is doing well. “The business has performed well under some obviously trying conditions. We’ve managed to successfully mitigate most of the risks and still post good results,” Mmutlana explains.

He says some disciplined new operating procedures and efficiency measures have helped in terms of performance.

“We had to focus primarily on our older fleets whose contract terms were due to expire, and on how to best dispose and/or leverage any potential second economic life 80

www.southafricamag.com

We Repair & Service All makes of Trucks, Trailers & LDV’s 24hr Breakdown : 0732185711 - Phone: 043 7363332 Email: vsctruck@intekom.co.za www.vsctruckdieselrepairs.yolasite.com

Customers value the services we offer and rely on us as a one-stop shop

opportunity of these assets. We exploited these through refurbishment of specialised vehicles and sub-assets, as well as intra contract fleet exchanges, enhancing our revenue and margin opportunities, and additional cost and operating efficiencies for our clients in return.”

FleetAfrica has also been working smarter, negotiating better terms with vehicle manufacturers, related suppliers and specialist body builders, for instance, and looking for alternative funding solutions.

“On another level, we’ve had to be very vigilant on how we manage insurance and abuse of vehicles

by drivers. Utilisation of smart technologies and use of telematic solutions like vehicle tracking has been invaluable.”

What differentiates FleetAfrica from the rest is the sheer depth and size of its offering. “Customers value the services we offer and rely on us as a onestop shop, getting their fleet management needs serviced in one place,” says Mmutlana. “It is a tangible advantage.”

Continued service and product innovation, as well as market expansion, are underway, and expected to add to FleetAfrica’s growth and performance into the coming years, Mmutlana concludes. END www.southafricamag.com 81

Sea FRUIT OF THE

Christo du Plessis, managing director of Abagold, tells South Africa Magazine that South African abalone, known to South Africans as perlemoen, is one of the most desirable seafood dishes in the world.

By Ian Armitage

a

bagold Limited’s story is remarkable. The South African firm has grown from humble beginnings as an experimental hatchery some 20 years ago, to become one of the largest land-based marine aquaculture operations in the world, incorporating several large abalone farms and a world-class processing plant.

And the company keeps growing.

“Perlemoen is a seafood delicacy unique to the South African coastline,” says Abagold’s Christo du Plessis, a perlemoen lover. “Demand continues to rise.”

82

www.southafricamag.com

It is popular the world over, but especially so in the Far East where it has almost mythical status among chinese people, he says.

However, aggressive poaching saw abalone added to the endangered species list, and, although it has since been removed, it is by no means safe.

It is steadily being wiped out, experts say.

It is a serious problem but one du Plessis believes farms such as Abagold’s can help solve through providing ‘an alternative’ to wild caught abalone.

Abagold FEATURE

TURNING THE TIDE Headquartered in the New Harbour, Hermanus, Abagold specialises in farming Abalone shellfish and is helping to preserve the culinary treat, while meeting ever-increasing demand.

“It was clear that the only possible solution to future availability of abalone was aquaculture,” du Plessis says. “Abagold was born.”

Established in the early 1990s with minimal seed capital, Abagold has now grown into a position where it is the leading producer of South African abalone, exporting some 220 tons yearly, representing a monetary value of more than R55 million.

“We just recently received a capital injection of R53 million to grow production over the coming years,” du Plessis says. “The money was invested via BEE shareholders, which brings the empowerment shareholding component in Abagold to 25 percent.”

The capital injection will be used to grow Abagold’s production to an estimated 475 tons annually over a period of five years.

“The financial injection from Inspired Evolution’s R700 million equity fund, Evolution One, will put us in a commanding position as a leading player in the hatching, rearing, processing and exporting

It was clear that the only possible solution to future availability of abalone was aquaculture.

Abagold was born.

of local abalone,” du Plessis says.

“It will enable us to expand abalone production capacity for export, meeting increased demand from the Far East, and will help us set the global standard for cultivated abalone production – that’s the objective,” he continues.

Abagold currently comprises three farms: Sea View, Bergsig and Amaza.

In 2010 the company purchased a further seven hectares of land adjacent to Bergsig, with a view to establishing a fourth farm – something that is now a reality.

Construction work on this project, called Sulamanzi, has already started and the first tanks will be operational by the fourth quarter, du Plessis says.

Once completed, this new farm will raise Abagold’s total production capacity to 475 tonnes per annum and the staff complement, which currently stands at 270, will increase.

“Farming abalone is a labour intensive effort. We will have to considerably increase the number of people we currently employ; it’ll have to be grown to around 470.”

Du Plessis says most of the production will be exported and that “to increase” Abagold’s green footprint the new farm will have dedicated seaweed www.southafricamag.com 83

tanks. “We will strip nutrients in the abalone effluent water by growing seaweeds, which will then be fed back to the abalone. In this way water is returned to the sea cleaner than when it left.”

Plans are also in place to install a turbine in the effluent line to recover electricity.

Abagold is also well placed to supply the local municipality with desalinated drinking water du Plessis says.

“Why is this important to us? Well we are committed to responsible growth through innovation, science and mariculture best practice,” he says, before talking more about the production process: “In the larval rearing area, fertilised eggs are hatched and nursed for the first week before they are transferred to the hatchery, where settled animals spend the first few months feeding on diatoms. Animals are weaned onto macroalgae in the nursery and grown to spat size.

“The hatchery produces excess spat every month – this way only the best animals are picked out to ensure the superior final product. Grow-out tanks are situated on our three farms and prime selected animals from the hatchery are placed on Sea View where expert staff provide them with the best possible care.”

84

www.southafricamag.com

Abagold FEATURE

Once the abalone are of a suitable age and size, they are moved out to Amaza where the intermediate sized animals are housed.

Finally, they are taken to Bergsig to complete their growth phase.

Combined, the current farms house 2,000 landbased tanks that require more than 7,000 tons of pumped seawater every hour.

“It is a big operation and carries big costs,” du Plessis says.

“The Abagold story is a remarkable one, having grown from humble

beginning into one of the largest land-based marine aquaculture operations in the world and one of the principal employers in the Overstrand,” he adds. “It is our aim to achieve sustainability.

Responsible growth is vital. We see many growth opportunities, but then we aren’t the only farm that is expanding and we are seeing more and more players come into the industry.”

Abalone is considered a delicacy in all parts of the East, where it is commonly known as Bao Yu, and almost always forms part of

a Chinese banquet.

The availability of commercially farmed abalone has allowed more common consumption of this once rare delicacy, and it is locally available as a canned product.

“South Africa produces something like 1,000 tons of farmed abalone a year and I believe globally the market is something like 50,000 tons,” du Plessis concludes.

To learn more visit www.abagold.co.za. END

LEVEL 2 BBBEE STATUS

PROUD SUPPLIERS TO ABAGOLD

OF GENERAL INDUSTRIAL MAINTENANCE PRODUCTS SUCH AS:

Abrasives, Adhesives, Blades, Cable Ties, Castors, Circlips, Drills, Grease Nipples, Fasteners, Gloves, Hand Tools, Holesaws, Hoses, Hose Clamps, Food Grade Lubrication and Maintenance Sprays, Metals, Nylon, Perspex, Valves, Fittings and Flanges and much more.

7 TRAMBER PLACE BLAKE STREET OBSERVATORY TEL 021 447 2697 - FAX 021 447 3973 email: hopfast@netactive.co.za

dante Zorzi COMMERCIAL DIRECTOR OF CIVILCON

South Africa Magazine chats with Dante Zorzi, commercial director of Civilcon, who tells us more about some exciting opportunities at the company in this Q&A.

By Ian Armitage

C

onstruction giant Aveng Group recently announced that its profit was down in a difficult year.

In a statement following the release of its annual results for the year ended June 2011, CEO of the Aveng Group Roger Jardine said, “South African construction and infrastructure environment has slowed significantly, particularly in the public sector.”

Headline earnings per share – a measure of profit – were down 37 percent while revenue held steady at R34.3 billion.

The JSE-listed company, however, experienced “strong growth” in its 86

www.southafricamag.com

order book, which was up 19 percent to R37 billion.

Aveng warned that infrastructure investment by the public sector was likely to remain under pressure over the next two years.

Within that context, we visited Civilcon, a well established and highly regarded multidisciplinary civil engineering contractor, which has a CIDB rating of 8CE, allowing it to tackle individual projects of up to R130 million in value, to find out more about how life is treating them.

Commercial director Dante Zorzi (DZ) had some interesting answers…

SA Mag: Dante, how are you doing? It’s great to meeting you… First off, we wanted to learn more about your background in this industry?

DZ: It is a family business, which I have grown up around. As a student I spent my holidays working here and upon completing university and getting my degree I started working for Civilcon full-time.

Civilcon FEATURE

SA Mag: What do you think you bring to the role?

DZ: I think I bring out the box thinking and youthful energy to the company. I am creative, a good problem solver and have an eye for detail. Being tech savvy also allows me to see innovations that may improve efficiency in the company and add a 21st century touch to the way we do things.

SA Mag: What brought you into the industry?

DZ: The fact that you are presented with new challenges on a daily basis means that you need to be dynamic and able to solve problems. This keeps you on your toes and the makes working in the industry exciting.

SA Mag: What exactly does your role entail?

DZ: A wide range of duties that includes business development, project management, strategic management and planning as well as marketing and market research.

SA Mag: Are you enjoying the challenge?

DZ: Yes, as I said the dynamics of the industry make everyday interesting. I also have a lot of flexibility and freedom to make changes where I see fit and support from the directors to implement my ideas.

SA Mag: Please tell me about Civilcon and your future goals?

DZ: Civilcon is a well established and highly regarded multidisciplinary civil engineering contractor specialising in concrete structures specifically bridges and precast concrete members (pretensioned precast beams and other bridge related precast). Another large part of business operations is the roads and mass earthworks.

Based in Olifantsfontein, we are predominantly active in Gauteng and the surrounding provinces with the capacity to serve anywhere in the country should the need arise.

The company was established 30 years ago by Mauro Zorzi and his partner Luca Pennelli, and has a Construction Industry Development Board or CIDB rating of 8CE, which allows us to tackle individual projects of up to R130 million in value. This is the second highest rating and our goal is to ultimately reach a CIDB rating of 9CE, which puts us in the unlimited class for civil engineering contractors.

SA Mag: It has been suggested that construction has been slowing and that infrastructure investment by the public sector will remain low www.southafricamag.com 87

for some time. Given that context, how do you think the business is performing?

DZ: The business is performing well considering that the industry has been hit by a dramatic slowdown post 2010 Soccer World Cup. To be honest, the year started off fairly slowly and wasn’t looking that great, but things have improved with a lot of work starting to come out in recent months. Ultimately the next two quarters will determine what context this year will be viewed in and things are starting to look promising.

SA: How would you sum up the current state of the industry then?

DZ: : Compared to the pre 2010 World Cup boom years it has not been a good year for the industry. However this was an anomaly in the industry trend that saw a majority of companies rapidly expanding to meet the challenges of finishing the various infrastructure upgrades, stadiums and airports prior to the tournament. Post 2010 World Cup saw the industry in decline and a serious shortage of work in the public sector that resulted in thousands of job losses due to layoffs. As a result most of the listed companies are posting reduced earnings for the year. However during the national budget speech earlier in the year there was a promise of vast spending on further infrastructure upgrades that will be rolled out during the course of the next five to ten years. The next phase of infrastructure upgrades will be dominated by the refurbishment and expansion of the existing road and railway system as well as increasing the capacity of the countries water supply and wastewater treatment works. We are already beginning to see this work being rolled out so things are bound to improve.

SA: What are the current industry trends/challenges?

DZ: Besides the recent shortage of work the biggest challenges facing the industry are: 1) Corruption in certain government departments and municipalities which has seen the emergence of what the media has dubbed “tenderpreneuers” or companies with political affiliation that are given work regardless of the 88

www.southafricamag.com

outcome of the tender process; 2) The loss of skills in the industry and the rapidly ever-increasing cost of unskilled labour; 3) Labour unrest linked to annual trade union activity; 4) Strict labour legislation with rigid hiring and firing practices means that it is both time consuming and extremely costly to layoff people when the industry is in decline. This puts a lot of pressure on smaller companies and is ultimately enough to result in their closure.

SA: How are you working to overcome those?

DZ: We continue to look for work and submit bids with clients that we know to be ethical and transparent while avoiding those that are plagued by corruption.

We are constantly training our workforce so that we may improve their skills and work output. We do our best to plan for and manage the consequences of the annual “strike season” of industrial action linked to the various trade unions associated with the industry. As for the labour laws, we hope that they will be relaxed in the future to allow for some flexibility in what is on all counts a “seasonal” industry.

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

Civilcon FEATURE

SA: Are there lots of opportunities for the company?

DZ: Yes, with continued growth of our population and economy comes the need for infrastructure to meets the demands associated with this. Many old roads and bridges are being upgraded, or replaced, new infrastructure is being rolled out to rural areas that are beginning to boom. The rainy season alone presents a vast amount of work as older bridges struggle to cope with the amount of water we are experiencing of late. So despite the recent slow down things look promising.

SA: Have you identified a clear market strategy?

DZ: Ultimately our market strategy is dictated by economic and political conditions within the country as the majority of our work comes from government contracts. As such we have dynamic strategy that’s gives us the flexibilityy to quickly adapt to ever changing market conditions.

SA: Do you continue to innovate? How so?

DZ: Yes we are always looking for ways to improve the efficiency of workflows, reduce costs, and improve quality. This is done through both in-house innovations gained from field experience and from various vendors offering us products that are of benefit. This industry is a constant learning curve as there are always new ways to do old things better, faster and cheaper.

SA: How do you see the industry developing?

DZ: As one of the emerging economic powerhouses, South Africa can only grow from strength to strength. Its construction industry is the backbone of that growth and as this country continues to grow so the industry will rise to meet the demand.

We look forward to what the future will bring and embrace it with open arms, for this is truly a land of opportunity even though the industry tends to be a bit of rollercoaster ride. We will stick to our strengths and continue to produce the quality work for which we are renowned.

SA: How would you like to see the business develop, then?

DZ:I would like to see the business continue to grow while maintaining profitability. Short term we would like to expand locally and ultimately receive a CIDB 9 rating. Medium term we would like start up in neighbouring African countries as there is a lot of opportunity in terms of construction of infrastructure in these emerging economies after years of civil war and political unrest. I would also like to see the company grow, not only physically, but also more importantly in terms of our skills, our efficiency and, our quality. There is an old quote -- I cannot recall the author -- that says, “You’re either moving forward or dying, stagnation does not exist in our universe”. I find it a very appropriate vision for the company.

Dante thanks for answering our questions and for the wonderful insight. END

Nissan vehicles play a substantial role in the daily lives and continued development of Zambia says Sue Mennell managing director of Nissan distributor CFAO Zambia.

By Ian Armitage 90

www.southafricamag.com

n

issan distributor CFAO Zambia has set its sights on becoming the country’s number one car dealer and is planning to expand its network countrywide.

The ambitious brand positioning strategy follows significant and continuing investment in Zambia.

“CFAO Zambia was established in October 2000

by French group Pinault Printemps Redoute (PPR), a company, which owns luxury brands,” says CFAO Zambia’s managing director Sue Mennell, who was appointed to the role just over a month ago. “The Lusaka headquarters has recently undergone major redevelopments with a new Nissan showroom, parts

CFAO Zambia FEATURE

warehousing and service and parts reception completed, while work will soon commence on additional new purpose-built service repair and body-shop and paint-shop facilities. “Nissan Motor vehicles play a substantial role in the daily lives and continued development of nations like Zambia and it is very much an exciting time.�

This is an investment cost in excess of US$1.5 million, the company said.

Nissan Motor vehicles play a substantial role in the daily lives and continued development of nations like Zambia

www.southafricamag.com 91

CFAO Zambia FEATURE

OBJECTIVE: GROWTH

We are looking at opening some outlets further in the north in the Copperbelt Province where the mining community is

92

www.southafricamag.com

Since its establishment, CFAO Zambia has concentrated on two main objectives, one to firmly establish the company within the motor vehicle industry in Zambia and secondly to re-establish the name and reputation of the Nissan brand whose market share had shrunk to just six percent in 2000.

“Over the years CFAO has made considerable headway,” Mennell says. “What I have now is the exciting challenge of building on it.”

CFAO Zambia has grown from nine employees at start-up to a company that employs more than 100 people.

DEEP DEEP

to the surface

www.stanbicbank.co.zm

It has headquarters in Lusaka and branches in Kitwe and Livingstone with showroom, service workshops and parts outlet.

“We are looking at opening some outlets further in the north in the Copperbelt Province where the mining community is,” Mennell adds. “Zambia has huge mineral resources; with the world economy getting back on track the price of commodities like copper has gone up and it is an interesting one for us. We are looking at expanding.”

Motor vehicles are no longer a luxury but a necessity and the biggest challenge to owning a vehicle is finance, she says.

94

www.southafricamag.com

CFAO Zambia FEATURE

“We realise that many people need effective mobility.

CFAO is partnering with various finance houses to offer affordable finance plans for vehicle purchase.

Since its inception CFAO has sold many new Nissan vehicles, including 500 last year alone, and the forecast for this year is more than 600 units, which will give Nissan an overall market share of over 12 percent.

CFAO’s models include the Navara, Pathfinder, NP300 Hardbody, NP200, and X-Trail, sourced from Japan, Europe and South Africa.

“I’m very optimistic about the future,” Mennell concludes.

“Where would I like to see CFAO Zambia in the coming years?

Well, I would like to see us as the number one vehicle supplier in the country. That is our ultimate aim. If we could do that it would be fantastic. I would be glad to be able in a few years to look back and see what we have managed to do – opening new outlets, selling vehicles and service vehicles right across Zambia; that is the aim. It is a massive country and some of the north hasn’t been looked at yet.

“We are very optimistic. This is a very stable country, which is attracting investment and has strong mining potential, as well as strong tourism and also a very strong agricultural industry. As well, we have a growing middle-class and demand is increasing month on month. Zambia is going places for sure.” END

Q& a with Piet Smit, managing director of Bosveld Group

Piet Smit, managing director of Bosveld Group, talks to South Africa Magazine.

By Ian Armitage

96

www.southafricamag.com

Bosveld Group FEATURE

b

osveld Sitrus Pty Ltd is a private company that specialises in the production and export of citrus fruit. It was established in 1954 by the late Milaan Thalwitzer (snr) and is the biggest citrus production company in the Bosveld Group, which currently produces around 2.3 million cartons (15 and 17 kg) of citrus for the export market.

Some 60 percent of the total citrus production is Valencia oranges (including Delta, Midknight, Turkey), with 35 percent grapefruit (Marsh, Ruby Red and Star Ruby) and five percent lemons.

All fruit is packed in one of five self-owned pack houses situated at Hoedspruit, Letsitele, Boane and Malelane.

In addition to citrus, the group also produces mango, litchi, banana and sugar cane.

Piet Smit (PS) is the Group’s managing director is. He is a lawyer-turned-farmer who has a burning passion for fruit and who is determined to see Bosveld grow. And grow it has, with the recent acquisition of Gold Frontier Citrus (GFC).

South Africa Magazine (SA Mag) recently talked to Piet, who told us more.

SA Mag: Piet, thanks for taking the time to speak with us; we know you are away on business in Russia, so it is most appreciated. Could you start by telling us more about your background in the industry? We understand you were a lawyer. What brought you into farming?

PS: I am now part of a family business that started in the 1950s.

And yes, I am actually an attorney who gave up the law 17 years ago for farming. My father-in-law, Milaan Thalwitzer, and his father laid the foundations; my two brothers-in-law, Cornel van der Merwe and Marinus Neethling, and me are simply building on that.

www.southafricamag.com 97

Bosveld Group FEATURE

SA Mag: You certainly are!

Tell us more about the Golden Frontiers Citrus acquisition‌ PS: That acquisition has seen us extend our interests in the citrus, banana, sugar and sub-tropical fruit sectors. We acquired the shareholdings belonging to both TSB (51 percent) and the Industrial Development Corporation (49 percent).

The takeover is expected to result in Bosveld Sitrus increasing its basket of fruit products from just over three million cartons to six million cartons. The effective date of the transaction was 1 98

www.southafricamag.com

April 2011.

To go into more detail, with this acquisition, the Bosveld Group now has full control over Komati Fruits. Komati Fruits is a well-known citrus exportmarketer in which Bosveld Sitrus and Golden Frontiers Citrus previously had equal shareholding.

The takeover saw Dr Hopiie Nel, a well-known personality in the citrus industry, relinquished his position as managing director of Golden Frontier Citrus, with my brother-inlaw, Cornel, taking on the role.

Meanwhile, my other brother-in-law, Marinus, has moved from our

group headquarters in Letsitele to Malalane in the Mpumalanga Province where, as director of production and purchasing, he will be closely involved with day-to-day activities at Golden Frontier Citrus.

SA Mag: Why did you decided to buy Golden Frontiers Citrus and what are the benefits?

PS: Consolidation. We have been working very closely with the company on the marketing side over the last 10 years and it was just logical to acquire it when the opportunity presented itself.

It now gives us full control of all the production and marketing aspects. The farm is situated in another growing region and it forms part of our

Agriculture • AGRICULTURAL CONSULTANTS • ANIMAL NUTRITIONIST • PROJECT MANAGEMENT • COMMODITY TRADING • MENTORSHIP PROGRAMS

Transport

TEL: +27 12 347 5452 FAX:+27 12 347 2823 echbert@summerlane.org

Piet Smit with Freek Dreyer, director of Zest Fruit at the World Food show in Moscow

risk management strategy different climate, soils, and water resources, etc.

What are the benefits?

Economies of scale, risk management and better marketing opportunities!

We also recently took up shares in a company called Zest Fruit, which concentrates on exporting fruit to the Middle East, Far East Russia and other new markets such as Bangladesh, India and Iran.

This is an exciting time.

SA: How then do you think the business is performing?

Has this been a good year?

PS: We are performing well but there is still a lot to improve to increase production and quality and to 100 www.southafricamag.com

We also recently took up shares in a company called Zest Fruit, which concentrates on exporting fruit

keep up to the ever growing input costs and sometimes unreasonable demands by the markets and customers.

We will do our utmost to keep being competitive and adhere to the REASONBLE demands by the markets.

To answer your second question, has this been a good year? Well no, not really. It hasn’t been a particularly good one! SA growers just want to survive.

Why is that? Well, there is low demand for fruit and veg worldwide and global economic problems do influence the consumers’ ability to buy fruit.

Earthquakes in Japan had huge influence on demand for especially grapefruit.

Also there were huge orange crops in Spain, Egypt and Morocco, which meant our oranges arrived in overstocked markets.

High oil prices too resulted in high shipping tariffs -- BAF prices were very high -- and we have had to deal with a strong rand as well.

High input costs such as electricity (25 percent), labour (almost 26 percent) over the last few years, has put our profitability under pressure.

We are also constantly faced by the SA government’s drive for land distribution.

While we are not opposed to land distribution, the uncertainty of the whole process is unbearable.

On top of that, demands

Bosveld Group FEATURE

by supermarkets regarding food safety, accreditations and social responsibilities are also costing the farmers a lot of money, while the supermarkets always want to buy at the lowest price. We support all their food safety and social responsibility ideas but they are pushing it too far in order to sell their product and not for the reasons initially intended for, in my view. As soon as the market comes under pressure some walk away from programmes to buy at the lower market price, completely forgetting, first all the efforts producers make to get accredited and, second, their own standards by buying fruit from non accredited origins.

More positively, we are in the middle of a wet cycle and enough irrigation water is available for the next few years.

SA Mag: Given all you’ve just said, how would you sum up the current state of the industry?

PS: The SA industry is well organised, plays a leading role in the cooperation between southern hemisphere producing countries, and is technologically advanced, with research at the forefront, but it is under pressure as I already mentioned.

In terms of marketing, fragmentation is playing a bigger role every year with a lot of producers becoming producer/ exporters, not always with the right knowledge of the market. It can disrupt the SA marketing effort.

SA Mag: You’ve just brought Golden Frontiers Citrus. This is part of a wider consolidation in the industry. Tell us more about that…

PS: Well, the smaller growers generally are under pressure and quite a few had to leave the industry in the last few

years. And there is now more direct business between grower and receiver/end seller. Also, export is moving from the historically important markets in Western Europe more East, which is why I’m in Russia today.

SA Mag: You have obviously identified a clear market strategy…

PS: We have. We aim to become the most admired and sought after leading grower and exporter of citrus in SA and seek to form partnerships with leading buyers of citrus worldwide.

We will always be on the lookout for new opportunities.

Piet thanks for answering our questions; we wish you well. END

verbind tot jou sukses Met groot opgewondenheid kondig ons aan dat Novon WTP, Avello, Ububele Alfa Chemicals en Alfa Agro Chem, saamgegroepeer het en sal in die toekoms onder die nuwe Yield handelsmerk handeldryf.

Yield spesialiseer in die voorsiening van landbou advies, asook ‘n omvattende reeks hoë gehalte, goedgekeurde onkruiddoders, plaagdoders, swamdoders en groei reguleerders.

Ons streef daarna om ‘n suksesvolle opbrengs vir ons kliënte te verseker.

agricultural business partners

Vir enige navrae, skakel gerus ons kliënte hulplyn nommer 082 801 6759. www.yieldagri.com www.southafricamag.com 101

SPAR ZAMBIA

ChARTS 40% maRkET SHaRE

SURGE SPAR is a unique retail concept, a hugely successful global organisation of independent retailers and wholesalers working together. Mike Yeatman, CEO of SPAR Zambia, tells South Africa Magazine of its current burst of expansion and the major assault this “proudly Zambian� supermarket group is poised to make on the retailing sector.

By Colin Chinery

102 www.southafricamag.com

SPAR Zambia FEATURE

W

hen Mike Yeatman travels across the Zambian high plateau 200 miles north of Victoria Falls wearing a ‘SPAR’ shirt, people call out, ‘Hey Mr SPAR, when are you coming to the Copperbelt?’

And Yeatman, CEO of SPAR Zambia knows why. “They want retailing competition; they want an alternative.” And the 58-year- old Zimbabwean is delivering the goods. His is company on course for growing the current seven stores to 30 by 2015.

SPAR has been in Zambia eight years, its flagship, SPAR Arcades in Lusaka, the capital city with a population of 1.7 million: a boom city with new buildings, chain stores and shopping malls rising everywhere.

But until recently the grocery retailing market here was relatively unsophisticated. “The sector started effectively 17 years ago when Shoprite arrived and, until we opened, Shoprite dominated. Now Pick n Pay has just arrived, but Zambia is not like South Africa or Zimbabwe and neighbouring countries where there are a lot of competing supermarkets.

“Overall there are a lot of small shops, but there’s capacity for the supermarket chains to grow.”

At SPAR, we seek to create a retail experience which will attract and retain customers through our ‘Passion for Food’

SPAR is a unique global retail concept, responding to the convenience needs of various modern day lifestyles, and its outlets identified through their innovative, creative, quality and customeroriented character.

Near the entrance of a typical store the focus is on fresh produce, appealing to customers in a hurry and looking to buy filled sandwiches, salads, readymade meals and fresh juices. Further inside are top-up items in the dry grocery and nonfood sections as well as a bakery, butchery and deli.

Essential to meeting these convenience needs, SPAR has long opening hours, a youthful modern appearance and a focus on fresh quality and quick friendly service – ‘The Best Fresh Store Which is Closest to the Customer’ And now SPAR Zambia – already one of the largest producers of fresh bread in the market - plans to achieve a third of the formal retail market share over the next five years. Strategies are in place, rolling out, and creating a stir. A year ago, with seven stores and the distribution bakery, SPAR Zambia began an operational re-alignment with partnership stores turning into franchises in line with the SPAR worldwide system. By the close of 2010 there were www.southafricamag.com 103

Spar Zambia FEATURE

three franchise and four corporate stores, and Yeatman sees franchising as the powerhouse of SPAR Zambia’s future growth.

“Since then and following two and a half years of re-structuring, we have opened a store in Chipata, capital of the Eastern Province on the border with Malawi. In November we have another two corporate stores opening in Lusaka and we have just signed up a franchisee in our third largest city Ndola, which will re-launch as SPAR in October. The same month our out of town store at Livingstone, capital of the Southern Province and tourist centre for the Victoria Falls will be closed and re-located into the centre of Livingstone. So we’ve got a hectic few months ahead of us.”

SPAR International is a phenomenon.

104 www.southafricamag.com

Founded in the Netherlands in 1932

by Adriaan van Well in response to the emergence of grocery chains in Europe, SPAR is now the world’s largest international food retail chain, with 13,600 stores in 33 countries. There are 803 in South Africa – where it arrived in 1962 26 in Botswana and 69 in Zimbabwe. The biggest SPAR nation is Britain with 2,560 stores, each one a franchise.

But despite this global reach, SPAR is not a multinational company but an organisation of independent retailers and wholesalers working together. True to the original philosophy of each country operating autonomously, it forms a unique partnership that allows it to operate locally and offer customers a personal service supported by the benefits of global business.

The ability of SPAR to develop stores best suited to local cultures and individual locations is seen as a major competitive strength. SPAR continues to modernise and successfully develop leading edge concepts, supports local communities in terms of employment and of purchasing local products, and believes in developing strong supplier linkages.

“At SPAR, we seek to create a retail experience which will attract and retain customers through our ‘Passion for Food’, and by constantly monitoring best international retailing practice.

Our objective is to become the retail destination of choice through a retailing environment characterised by freshness, range, uniqueness, authenticity and visual excitement,” says Yeatman.

His chief focus is quality and service: the aim to widen the range of products offered to customers by working with other SPAR countries, such as South Africa, Holland and the UK. Why shop at SPAR? “We offer a bigger product range and better selection than our competitors. If you look at our mission

Cargo Management & Logistics CML Zambia is fully licensed by the ZRA and offers a full range of clearing / forwarding / bonding / warehousing and distribution facilities, with a total of 13 offices located throughout Zambia.

CoNtaCt Ndola (Northern Region) Tel. Intl +260 21 2650486 2650885 / 2650886 / 96 6999221 Fax. Intl +260 21 2650880 Email. ethan@cmlzambia.co.zm

Lusaka (Southern Region) Tel. Intl +260 21 1272352 1272339 / 96 6999219 Fax. Intl +260 21 1272301 Email. john@cmlzambia.co.zm

www.cml-ltd.co.uk FTW5199

25435

Mosi is the light drinking, passionately brewed and internationally awarded lager that delivers that refreshing and satisfying taste. That taste that is as truly Zambian as the people who enjoy it!

)

A big nation has a big thirst.

It takes a lager that has been born and brewed in Zambia to satisfy that thirst. A lager that reflects the character of a progressive, friendly and proud nation. A nation that moves ever forward but never forgets its roots.

(Z

REFRESHING THE NATION’S THIRST TEL: + 260 211 212756 FAX: + 260 211 212755

accounts@fresh.co.zm admin@fresh.co.zm

Fruit & Veg City (Z) Ltd is a wholly Zambian Company specializing in the wholesale supply of fresh perishables countrywide and dealing in all sectors of the market.

We pride ourselves in getting quality produce from the farmer to the end user. Fruit & Veg City (z) Ltd is a loyal supporter of local Zambian farmers, both commercial and small scale, that supply fresh produce on a daily basis.

The Company is run by a highly dedicated and dynamic team who are also proficient in all aspects of food handling and hygiene standards required of the Industry.

Fruit & Veg City (Z) Ltd have established a strong and loyal relationship with the Spar chain of supermarkets in Zambia supplying their stores countrywide.

Not For Sale To Persons Under The Age Of 18.

SPAR Zambia FEATURE

statement, what we pride ourselves on is being the Best in Fresh, and maintaining affordable pricing across our extensive range of products.

“And we offer great service to our customers. It’s part of the SPAR International Strategy, part of our strategy, and how we believe we will grow,” Yeatman says.

SPAR International’s Dutch HQ has expectations of strong growth in Zambia and Yeatman will not disappoint. Skills are an issue here, and Yeatman has embarked on in-house training, developing a succession plan, and encouraging personal development and commitment to core values and strategies. “At SPAR Zambia we receive technical assistance from SPAR South Africa and support through SPAR International.

We are growing all the time, and the career opportunities and prospects for advancement with us are excellent.

“And on the broader front the national economy is growing and we believe we can contribute greatly to that growth. And an important factor here is that we are a Zambian company. With respect to our competitors, Shoprite and Pick n Pay have 106 www.southafricamag.com

mainly South African shareholders, whereas we are registered in Zambia and have Zambian shareholders.”

National identity and distinctiveness are critical both for SPAR and to Yeatman.

“It’s very important and something we must market with more emphasis. We are saying, support SPAR, it’s a local company supporting local people, and it’s an important part of our strategy. In Zambia there are a lot of vegetable farmers, and we like to buy their products along with locally produced fresh meat and chicken.

There’s not a lot of fresh fruit grown here and we buy in from South Africa. Subject to them being competitive, we also support local manufacturers and local distributors of international brands. And like SPAR International, SPAR Zambia is very much involved in community projects and social responsibility. It’s another strong aspect of our Zambian identity.

“Meanwhile we continue to modernise and successfully develop leading edge concepts.

We have passed through our period of consolidation, and opening four stores in two months is evidence of this. I see unbelievable growth for SPAR Zambia.” END

Touch Africa is a non-profit organisation whose mission it is to “make school a better place” for previously disadvantaged children in South Africa. We have offices in both the UK and South Africa and have been operating since 2007.

The focus of our energies is on children between the ages of 2 and 18 and the scope of our work includes but is not limited to the:      

rehabilitation of schools and provision of basic education equipment electrification and provision of ablution facilities provision of self-sustaining economic activity school feeding sporting facilities installation of IT and Science Laboratories Our Vision: Touch Africa’s vision is to improve education facilities particularly in rural areas. We strive to uplift and enrich the learning experience, help to develop a passion for learning and therefore help to make previously disadvantaged children valuable citizens of the future.

Background: Vast areas of South Africa are rural where access to water, electricity and transport and access to information is either non-existent or limited. Children therefore are not getting equal opportunity to education.

Government: Deputy President Kgalema Motlanthe has commented that backlogs in infrastructure are hugely problematic and that partnership between the government, the private sector and funding partners is crucial.

You can help us by adopting a school in South Africa Contact Richard Cook on 019 204 85333 or email touch.africa@btconnect.com or Elise Fish on 027 (0) 76 170 6449 or email elise@touchafrica.info

School Aid 4Afria t/a Touch Africa, UK Office Arnel House, Peerglow Centre, Marsh Lane, Ware, Herts SG12 9QL, Tel: 01920485333, Fax: 01920484477, Cell: 07773844444 Email:touch.africa@btconnect.com, Website http://www.touchafrica.eu, Registration Number 1137365, Touch Africa, South African Office, 161 Heugh Road, Walmer, Port Elizabeth, 6001, Tel: +27 (0) 41 581 5335, Fax: +27 (0) 41 581 5334, Cell: +27 (0) 76 170 449 Email: elise@touchafrica.info Website: http://www.touchafrica.info Section 21 Company Registration Number 2007/024885/08 NPO. Reg. No: 75773