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Aaron

Mokoena Bafana Bafanaâ&#x20AC;&#x2122;s captain shares his dreams for South Africa

Midas Group

That golden touch

Metcash

Rebrand awareness

Busmark 2000

Heavyweight bodybuilders

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Prepare to be Jonssonised

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In praise of the F word Wherever you look right now, it’s hard to avoid the F word. Or the WC. Best of all though, it is proving equally impossible for the world to ignore SA. Football, the World Cup and South Africa are on everyone’s lips and by the time the final whistle blows, more than 26 billion pairs of eyes will have been trained on our country. The number of foreign tourists arriving here may have been driven down a little by the recent world-wide recession, but hopes remain high that South Africa will see tangible economic benefits and, as President Zuma says, will also benefit “for years after the tournament”. It will be a while yet before you are able to tell us what the tournament and its immediate aftermath meant for your own enterprises, and in that respect, South Africa Magazine would be pleased to hear from you. In the meantime, here are some of the numbers to help you focus your marketing strategies in a year when everything South Africa and its business community can offer the world will be in the spotlight as never before. For example, the experts at the media specialist Brand Republic reckon that a live global average audience of 125 million will be glued to their television sets for each match. The final on 11 July is set to be the most watched sporting final in history. South Africa hopes to top the 2006 audience of 322 million people by 5%. Perhaps surprisingly, those of you expecting a men-only market to sell to via football would be very much mistaken – the female share of viewing is expected to be as high as 42% this year. Those looking to the lucrative youth market won’t be disappointed either. South Africa’s World Cup will deliver an audience profile where significantly more than a third of the audience is aged 16 to 34. If you thought football was downmarket, you would be wrong again; our 2010 audience will be made up of more well-off individuals than any previous World Cup. As one expert put it: “The World Cup is the largest shared experience in the world – with all the benefits that brings.” We hope it works for you.

Editorial

Acting Editor – Daniel Landon Deputy Editor - Samantha Baden Chief sub-editor - Janine Jorgensen Editorial assistant - Inger Smith Sub Editors – Jahn Vannisselroy Janine Kelso Tom Sturrock Alison Grinter Chief Writer – Colin Chinery Writers – Ruari McCallion Jane Bordenave

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Sport Aaron Mokoena

Bafana Bafana captain Aaron Mokoena shares his hopes for South Africa, his belief in football to unite communities, and why vuvuzelas are tops

entertainment Game for a laugh

Culture Green and gold

Food A taste of South Africa

Sport Man of the match

Comedian Marc Lottering explains why SA show Bafunny Bafunny will get the World Cup party started

Award-winning designer David Davidson takes us behind the scenes at this year’s South African exhibit at the Chelsea Flower Show

The Rainbow Nation is a country of food lovers, as Lehla Eldridge discovered when she compiled a unique local cookbook

When South African footballer Albert Johanneson played in the 1965 FA Cup final, he changed the competition and the sport forever

Group Midas lden touch That

FEATURES

REGULARS

Contents

k 2000 ilders Busmareight bodybu sh Metca d awareness

kwear nised n Wor so Jonsso e to be Jons Prepar

Heavyw

Rebran

24 Midas Group 34 Metcash 46 Hyundai 52 Jonsson Workwear 58 Busmark 2000 64 Safika 70 Petrolium SA 76 Buffalo City 80 East London Golf Club 84 Monier Roofing 88 Tallie Marine 94 Transnet 98 Joburg Water 104 IWC 108 Gallo Music 112 Inmins

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EYE ON THE

BALL

Bafana Bafana captain Aaron Mokoena shares his hopes for South Africa, his belief in football to unite communities, and why vuvuzelas are tops. Writen by Susan Miller.

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Aaron Mokoena SPORT

e caught up with Bafana Bafana captain Aaron Mokoena before the momentous moment when the 2010 Fifa World Cup kicks off in Johannesburg.

What does hosting the World Cup mean for South Africa? Lots of things, it gives South Africa the chance to show the world its beauty and diversity – visitors can go to all the beautiful places, such as the safari parks and wineries. At the same time, the World Cup will boost the economy and create work. It’s up to us to make the most of this opportunity.

Will Bafana Bafana cope in its group, which has Mexico, France and Uruguay? We know that the World Cup demands the highest style of football, and we are up against tough countries. We are the hosts and we need to prepare ourselves mentally. We have the target of getting to the quarterfinals. We have a mountain to climb and we must use our supporters, they will be the 12th player we need.

Do South African fans have realistic expectations of Bafana Bafana? In June and July last year we played the Confederations Cup and our fans were amazing. They gave us the support we needed and we did well. The fans know what we can do.

Have Bafana Bafana underperformed in the past? Looking at our performances in the Confederations Cup and the games afterwards, we were a success. We will try to build on that … the Confederations Cup was our rehearsal for the World Cup. Before that, the past is the past …

If you weren’t in Bafana Bafana, who would you support? It’s the first World Cup to be held in Africa and I am hoping the African countries playing do well. Of course, there are brilliant sides, such as Argentina, Brazil and England, but I am hoping that Ivory Coast and Ghana do well.

What is your role as captain? Leading by example, but I have been so fortunate in Bafana Bafana to be surrounded by players who make the job easy. Experience plays a big role in leading a team more specifically in the big events. I am looking forward to the World Cup opener very much.

Your foundation aims to provide opportunities for youngsters through football. What does the sport offer young people? The Aaron Mokoena Foundation aims to create opportunities for young people, using football as a vehicle. We understand that not everyone can be footballers, but there

It’s all about positive development, which many South African kids lack are other roles, such as administrators and doctors – it’s all about positive development, which many South African kids lack. I want to give opportunities to young stars – to both boys and girls. That is why we are looking at setting up study centres in all the provinces of South Africa. I want my legacy to be the foundation’s work. I was brought up near Johannesburg [in Boipatong] and I want the work to roll out from there. www.southafricamag.com

How can South Africans living in the UK get involved in the Aaron Mokoena Foundation? The foundation’s website will tell them what they can do to help. Volunteers have been so helpful already and I would be delighted if more South Africans wanted to get involved.

You launched the foundation in the UK in January, you’re a Unicef advocate, and you’ve been involved in United 4 Bafana

Bafana and Fifa’s 1 Goal campaign, as well as England’s 2018 World Cup bid. Where do you find the time? I am so fortunate that I am surrounded by amazing people who do a lot of the actual work. I am proud to be an ambassador for the campaigns.

What impression do you hope visitors will have of South Africa when they leave? That South Africa is a country that is great to visit and that they can always come back, and that the experience was good for South Africans. I always tell people, switch off from the papers and go and see for yourselves what a great country it is and what great people South Africa has.

What’s next for you after the World Cup? I aim to achieve a lot off the field. I want to spend some time with ‘my baby’, the foundation. It will be a positive legacy. On the field, obviously, we will see what happens at Portsmouth – what the players wanted was the opportunity to play in Europe …

What have you enjoyed most about living – and playing –in the UK? In summer, the weather is amazing, and to be honest, there are also amazing people here who are so passionate about their football – you meet genuine warmth in England. 8

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Aaron Mokoena SPORT

What are your hopes for the future of South Africa? I really hope crime will be less in the future, that jobs are created so that people can be employed and that we can fight HIV/Aids together. Most of all, education is important and I am hopeful that all kids will be given the opportunity to learn. Really, the most important thing for South Africa is the economy, and getting more investment from foreign companies.

FACT FILE Age: 29 Born: Boipatong, Gauteng Football career: 1997-1998 Jomo Cosmos 1998-1999 Bayer Leverkusen 1999-2003 Ajax 2001 Germinal Beerschot (loan)

On a serious note, what do you think of vuvuzelas?

2002 Germinal Beerschot (loan)

[Laughs] They are amazing. I can actually play one myself. You have to have the right technique – maybe it’s like bagpipes? That’s how we know we are in South Africa, the sound keeps the players going. The noise of loads of horns in the stadium is just amazing for South African players. Fifa did have a debate about vuvuzelas, but after they visited they bought into them. END

2005-2009 Blackburn Rovers

2003-2005 Racing Genk 2009-present Portsmouth Position: Defender World Cup watch: Fifa suggests Mokoena is one of the key players in South Africa’s group matches against Mexico, Uruguay and France.

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laugh Game for a

Comedian Marc Lottering explains why SA show Bafunny Bafunny will get the World Cup party started. Written by Pierre de Villiers.

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Bafunny Bafunny ENTERTAINMENT

tand-up comedian Marc Lottering can’t wait for soccer fans to start streaming into South Africa for the World Cup. “We are very grateful to the foreigners because a lot of us are going to be paying off our bond by them renting our places,” he says with a chuckle. “I’m also sure a few South African women will be pregnant by the time the soccer fans leave, so we’ll have a lot of fair-skinned children with straight hair running around. It’s all very exciting.”

COMEDY MILEAGE Like most comics in South Africa, Lottering (back row, second from right) is getting a lot of comedy mileage out of the arrival of soccer’s great showpiece. From the paranoia surrounding the high crime rate, to disruptions caused by roadworks and the misfiring national team, the World Cup is a goldmine for any stand-up worth his microphone. An indication of the impact of the tournament is Bafunny, Bafunny, a comedy show that will see Lottering and seven other top South African comedians take to the stage at the Royal Albert Hall to shoot the breeze about the Beautiful Game and its impact on the Rainbow Nation. “The show is a chance to poke fun at ourselves, the questions we have about how Bafana Bafana will do and the concerns we have about the tournament,” says Lottering. “I think South Africans find it therapeutic to sit in a room together and laugh at themselves. It unites people and acts as a release.”

growing excitement Lottering hopes Bafunny Bafunny will bring the growing excitement surrounding the World Cup to the expat community in London. “To start off with there was a feeling in South Africa that no one was really going to benefit from the World Cup, so people wondered why we were sticking our necks out to do this thing,” says Lottering. “There are so many problems we have to sort out that don’t involve the World Cup. But the closer it gets to kick-off, there is real belief that we will rise to the occasion and that the event will be fantastic. “With so many expats in the UK, we hope to capture a great South African spirit at the Royal Albert Hall and celebrate that we are putting on a sporting event the world will watch.”

Best of the best With Bafunny Bafunny featuring a mix of established stars (John Vlismas, Barry Hilton, Mark Banks and Kagiso Lediga) and rising talent (Nik Rabinowitz, Trevor Noah, and Loyisa Gola), a good atmosphere is guaranteed. “Even though the country’s best comedian Julius Malema can’t make it, it’s a great line-up,” says Lottering with a giggle. “The comedy scene www.southafricamag.com 11

in South Africa is fantastic at the moment – comedy is the new rock ’n’ roll in the country, especially in Jo’burg and Cape Town. “Young comedians are stepping up to the plate, and Gola and Noah are great. The political rollercoaster in our country is really encouraging comedians – and we are sharpening our pencils.”

A great night out With so many comedians coming out of the woodwork, it’s no surprise that the stand-up circuit in South Africa is buzzing at the moment.

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“People are looking at the comedians more and more to see what we make of the latest news headlines,” Lottering points out. “Audiences are so supportive, they want to hear comedians’ take on politics because if you don’t laugh at some of the stuff that’s happening now, you would just bury your head under the duvet. It is also wonderful to see how mixed the crowds have become. In the past, I could say there would be a lot of people from the Cape Flats in my audience but you can’t predict that any more.” While South Africans are united in their newfound appreciation for comedy,

Bafunny Bafunny ENTERTAINMENT

Lottering says, people’s sense of humour varies in each province. “As a comedian you have to change your material as you travel through the country,” he explains. “I find that in Johannesburg they like more universal comedy, while in Cape Town they like comedy about the small nuances of life, such as standing in a queue and irritating bank tellers. Also in Jo’burg, I have to speak slower because sometimes they can’t understand what I’m saying. Actually, me talking fast just indicates an inherent fear that there’s a Caspir with tear gas round the corner ready to take me away.”

great idea to just get out and hand over the keys. South Africans are very forgetful and we tend to believe that it’s our car and just continue driving,” he says. “We are also very generous in asking whether we can hold your camera and take pictures of you. So long as you are a bit cautious the World Cup is going to be a great experience. ”

FISH OUT OF WATER With so many South Africans now calling the UK home, London has become part of the South African stand-up circuit with comedians adjusting their material accordingly. “The crowds in London like to hear about your early experiences in the city because it reminds them of the time when they first arrived,” Lottering says. “For instance, when I went to a supermarket I waited for someone to start putting my groceries in a plastic bag and got some very funny looks. I am also amazed by how no one in London makes eye-contact and how South Africans living over here have a new accent, until you start buying them a few drinks and then they sound very South African again. People tend to enjoy it when you bring these sorts of things up.”

Cautious optimism At the Bafunny Bafunny show, soccer will be the over riding theme though, and Lottering is ready to hand out advice to those who are heading to South Africa for the World Cup. “Visitors should know that if someone asks to test drive their hire car, it’s not a www.southafricamag.com 13

Green and

gold Award-winning designer David Davidson takes us behind the scenes at this yearâ&#x20AC;&#x2122;s South African exhibit at the Chelsea Flower Show. Written by Pierre de Villiers.

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The Chelsea Flower Show CULTURE

atching the supporters of the Kirstenbosch Botanical Gardens put together an exhibit at the Chelsea Flower Show is an extraordinary experience. For hours on end volunteers unpack and pull together flowers and plants before arranging them into a beautiful patch of South Africa in the heart of London. “Everyone puts in their best effort, and although the work is hard, we are all equally enslaved,” says David Davidson, a longtime designer of Kirstenbosch exhibits at the show, which is hosted by the Royal Horticultural Society. “It’s exciting to know that you are a part of the most prestigious horticultural show in the world and having the opportunity to showcase South Africa’s floral wealth is a very gratifying and proud moment.”

Gold rush Davidson and his helpers have every reason to feel proud of South Africa’s accomplishments at Chelsea over the years. In the history of what is the ‘World Cup of Horticulture’, the country has won 30 gold medals, with Davidson and design partner Raymond Hudson picking up 17 medals over the past 17 years for their designs. South Africa’s success at Chelsea Flower Show is all the more remarkable given the fact that the team is at a distinct disadvantage when putting together the exhibit. “The logistical challenge is a significant one,” Davidson says. “Firstly, most of the exhibitors are local or EU-based and bring live plants to the show. Our material must all be sent as cutflower material because of a phytosanitary regulation regarding the importation of soil from South Africa. This puts us at a disadvantage. However, our material performs well, and is usually displayed in a naturalistic setting, which makes plants look as if they’re growing. At the end of the show www.southafricamag.com 15

this is always a disappointment to buyers hoping to obtain a live protea plant.” Sourcing the material is also challenging. “We usually try to represent the national flora, and this means finding plants from the various national botanical gardens and specialist growers around the country,” Davidson explains. “Another logistical issue is the air-freight cost, which accounts for about one-third of the budget. The flowers are packed into standard export flower cartons, or custom-made crates.”

TEAM EFFORT The size of the team that travels to Chelsea varies from year to year, with Kirstenbosch relying heavily on volunteers. The core team comprises the design duo, a team coordinator and usually two or three horticulturists whose main function is to manage the stand during the show. Prior to judging, the group has five days in which to construct the exhibit and put in place all the plant material. When it comes to design, Davidson and Hudson rank among the best in the country, consistently dreaming up wonderful displays. “I am often asked where I draw my inspiration from and the answer is usually the same: nature,” Davidson says. “Sometimes it’s a geographical place or landscape you want to evoke but at another level it’s an almost microscopic examination of the patterns, design or diversity within the flora or a specific group of plants, that sparks off the idea.”

FINDING INSPIRATION Davidson and his team consistently come up with designs that command admiration from passers-by. “Our main claim in creating a unique Chelsea exhibit is that plants and flowers are indigenous to South Africa, which for foreign viewers is all very exotic,” says Davidson. 16

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The Chelsea Flower Show CULTURE

“That is part of the fascination, together with the fact that for gardeners in the northern hemisphere, most of these plants are impossible to grow successfully. After 34 years of exposure at the show, combined with the level of media coverage the South African exhibit elicits, our flora has for many years been a favourite among visitors.”

AWESOME TRIBUTE The inspiration behind this year’s design is South Africa’s incredible biodiversity – the country is the third most biologically diverse country in the world – and the team know that high expectations will demand hard work. For Davidson and his group, though, simply being at the greatest flower show on earth is motivation enough. “The Chelsea Flower Show is an awesome tribute to the plant kingdom,” says Davidson. “Simply being a part of this astounding assembly of amazing plants and fantastically creative ideas, is about as exhilarating as it gets.”

GARDENROUTE Why not visit these green spaces this summer? Kensington Roof Gardens

Chelsea Physic Garden

Royal Botanical Gardens

Hampton Court grounds

Kensington High St, W8 5SA A tranquil patch in the heart of London, the roof gardens are located 100ft above Kensington High Street. Don’t miss them at night. See roofgardens. virgin.com

Royal Hospital Rd, SW3 4HS Founded in 1673 by the Worshipful Society of Apothecaries, this garden body in Chelsea conducts research into nearly 5000 plant species. See chelseaphysic garden.co.uk.

Kew, TW9 3AB Enjoy 121 hectares of lush gardens, botanical glasshouses and an abundance of birdlife between Richmond and Kew. See kew.org.

East Molesey, KT8 9AU The stunning grounds surrounding the royal palace includes a maze, planted during the 1690s, in which paths add up to half a mile in length. See hrp.org.uk/ hamptoncourtpalace.

www.southafricamag.com 17

A taste of S outh A frica

The Rainbow Nation is a country of food lovers, as Lehla Eldridge discovered when she compiled a unique local cookbook. Written by Pierre de villiers.

t’s a well-known fact that most cooks hate revealing their recipes. Imagine then, the tall order that awaited Lehla Eldridge, who decided to put together a cookbook by knocking on doors in South Africa and asking people to share their greatest dishes.

AMAZING CUISINE “I know it sounds like madness and, to be fair, I did get doors closed in my face a few times,” the author of The South African Illustrated Cookbook says. “But more often than not people would open their hearts and their kitchens to me and reveal how they made their amazing dishes.” 18

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The South African Illustrated Cookbook FOOD

Eldridge’s journey started in Cape Town, from where she drove through the Karoo and across to Durban. She then journeyed down to Coffee Bay on the Wild Coast before exploring the Cape’s West Coast and the Klein Karoo. “I would go to a little dorpie, drop by the café and ask who the best chef or baker was,” Eldridge (main image) recalls. “A lot of the time I would hear: ‘Ja, that’s Mrs Buekes’. Then I would try and find Mrs Buekes. Sometimes that would happen quickly or I would have to wait in the village for a few days. Initially, I had a towny mentality and wanted to get things done quickly, but I had to slow down and accept that it would take time. I might have to wait for three days and they might say no. Or people would open their hearts and say: ‘Ja, come in’ and share their recipes.”

CREATIVE COOKING Eldridge admits that not all the dishes she sampled were a treat for the taste buds, especially when cooks strived to be as inventive as possible. “At Evita Bezuidenhout’s restaurant [Evita se Perron] in Darling I had a chocolate lamb curry,” she remembers. “The combination of tastes wasn’t to my liking, but you have to applaud the creativity that goes into a dish like that. I think South African cooks tend to be inventive and passionate because they draw from so many cultures. Different cultures have a different approach to cooking but everyone is united in their love of food.”

INTERESTING CHARACTERS As you would expect from a country as diverse as South Africa, Eldridge met enough interesting characters in her travels to fill a dozen books. “Oh, I met the most incredible people along the way,” says the author. “There was this man in Durban who was the godfather of sweetmeats. If I could cast him in a movie I would. At first he was stand-offish but as I spent time in his shop, he became so warm and welcoming. We kind of connected and he was lovely.” Eldridge also discovered talented local cooks in some unlikely places. “I started chatting to a young Afrikaans guy in a car park in Richards Bay who was selling koeksisters,” she recalls. “He was the sweetest guy and I couldn’t believe someone who was just 19 could produce such great food.”

ILLUSTRATING THE POINT To further convey South Africa’s love affair with grub, Eldridge has included charming illustrations in her book. “I would just plonk myself down in the road with my paintbox and start working,” www.southafricamag.com 19

The South African Illustrated Cookbook FOOD

she says. “It was an amazing experience because I would get a crowd of people around me curious about what I was doing. In Durban, a girl of about eight sat next to me. My paint water got dirty and she offered to change it for me. She ran off and came back with clean water and it was so sweet. Those are magical moments I won’t forget. “In Kalk Bay, this guy came up to me and he said: ‘No man, your boats are all wrong’,” she says with a chuckle. “At first I thought, how rude but then I realised he was absolutely right so I changed it. Meeting so many interesting people really made the trip special.”

SOUTH AFRICAN FLAVOUR Eldridge hopes that, with the World Cup fast approaching, her book will show those planning to visit South Africa just how much there is to enjoy in the country “There is so much to experience in South Africa,” she says. “I hope the book is seen as an opportunity for people to take South Africa into their house and kitchen and get a real taste of the country.” » The South African Illustrated Cookbook by Lehla Eldridge (Allison& Busby) is out now 20

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Albert Johanneson SPORT

African When South lbert footballer A played Johanneson FA Cup in the 1965 nged the final, he cha and the competition r. Written sport foreve inson. by Chris Atk

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n May 1, 1965, a South African footballer called Albert Johanneson stepped on to the turf at Wembley Stadium and straight into the history books. It was the first time a black man played in the FA Cup final, a moment that changed the face of the Beautiful Game and paved the way for the likes of Steven Pienaar, and Benni McCarthy to achieve success in the Premiership. Johanneson’s involvement in the game marked the high point in a career that featured many peaks but ended in tragedy when, following years of racial abuse from supporters, the player turned to alcohol and died a broken man at the age of 53.

EXTRAORDINARY ABILITY Born in Johannesburg, Johanneson (left) was playing soccer for Germiston Coloured School and Germiston Colliers in the 1950s when teachers noticed his extraordinary ability to beat defenders with the greatest of ease. News of his talent reached England, where another South African, Gerry Francis, was carving out a career for himself at Leeds United. Despite singing the youngster’s praises, Francis had a tough time convincing coaching staff to take a chance on his compatriot. “They refused to pay his fare and they told me: ‘How can we be sure he will make it?’” Francis remembers. “I said: ‘Well, you refused to pay my fare and I made it’. They finally agreed to cover the cost, but weren’t happy.”

THE MARK OF APARTHEID Upon his arrival in 1961, it was clear that apartheid had left its mark on Johanneson. After his first training session, the South African wasn’t sure whether he was allowed to share a bath with his white teammates. He soon found out that it was fine to do so when the other Leeds players stripped off his clothes and threw him in. 22

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On the pitch, Johanneson looked the part immediately on the wing, impressing in his debut against Swindon and crossing beautifully for Jack Charlton to score.

BECOMING A STAR The South African’s skill soon made him one of the greatest players in the First Division (now the Premiership) and in 1964-65 season he was the top scorer with 15 goals in 41 games. One goal in particular against Newcastle United, captured the imagination of the crowd and fellow players. Storming towards goal down the middle of the field, Johanneson controlled a long ball before beating defenders and calmly slotting it home past the goalkeeper.

VILE CHANTS The South African star’s season was capped off by his appearance in the FA Cup final, but just as Johanneson reached the height of his powers, racist elements on the terraces started to affect him. Francis, himself a victim of verbal abuse, remembers how traumatised Johanneson was by the vile chants. “It was terrible,” Francis recalls. “I remember people shouting ‘nigger’ at me from the stands. I was strong enough to take it but the abuse really got to Albert. It left him completely shattered. Every time someone shouted abuse at him, I think it hurt him deeply.”

Albert Johanneson SPORT

Leaving a legacy Just how much the abuse affected Johanneson could be seen by his dip in form late in his career. He joined York City during the 1970-71 season and scored only three goals in 26 appearances before retiring. The years after football weren’t kind to Johanneson and he sank into alcoholism. He died a recluse in 1995 in his small flat in Leeds. Johanneson’s problems with substance abuse have not tainted the legacy he leaves behind. The South African’s bravery in the face of provocation still acts as inspiration to other players, while his success at Leeds opened the door to the Premiership for other

stars such as Lucas Radebe, Phil Masinga and, later, Benni McCarthy (above), Steven Pienaar, Quinton Fortune and current South African captain and Portsmouth player Aaron Mokoena. The high esteem in which Johanneson was held at the time of his death could be gauged by the number of football stars that attended his funeral. One of the greatest players of all time, the late George Best, said of the South African: “Albert was a brave man to actually go on the pitch in the first place, wasn’t he? And he went out and did it. He had a lot of skill. A nice man as well which is, I suppose, the more important thing, isn’t it? More important than anything.” www.southafricamag.com 23

motor Get your

running Jane Bordenave talks to Warren Espinoza, Chief Operating Officer of automobile aftersales business Midas Group about how the company has become the market leader and what it is doing to stay there.

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Midas Group FEATURE

idas Group is the market leader in the automobile after sales industry. Founded in 1968 and floated on the stock market in 1986, the company has an established presence in both the wholesale market and by way of franchises in retail. In 1973, also founded NAPA â&#x20AC;&#x201C; the National Automotive Parts Association. Comprised of 85 members, it acts as a marketing and bulk-buying & marketing organisation, ensuring that members receive preferential prices from suppliers and value-adding promotions.

Our sales have improved during this tough period as vehicle owners drive their vehicles for longer in preference to purchasing new It is this dual route to market that differentiates the firm from its competitors and has allowed it to rise to the position it is in now: It operates five franchises, Midas, Motolek, CBS, Adco and Auto Care & Diagnostics which cover all the different direct-to-consumer aspects of the motor after-sales business and have over 400 individual stores throughout South Africa. The Group delisted in 2002 and, as of December 2009, a majority owned subsidiary of the Imperial Holdings Group, itself listed on the JSE. Despite being ostensibly in the automobile sector, Midas Group hasnâ&#x20AC;&#x2122;t suffered in the way that car dealerships or manufacturers have during the recession. â&#x20AC;&#x153;Our key market covers vehicles that are between 4 and 13 years of age. What we are benefiting from at www.southafricamag.com 25

Midas Group FEATURE

the moment is the large number of new vehicle sales that took place in 2005, which are just coming out of warranty now,” explains Mr Warren Espinoza, Chief Operating Officer of the Group, “Our sales have improved during this tough period as vehicle owners drive their vehicles for longer in preference to purchasing new”. However, he does temper this, going on to say, “the lack of disposable income in the pockets of South Africans has meant to some extent that consumers have tried to reduce their kilometres travelled and have deferred their vehicle maintenance plans.” Clearly, this five-year lag between the new sales and after sales markets means that the dip in new vehicle sales

Robert Bosch South Africa Proudly part of the World Team

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experienced by the automotive industry in 2007 – 2009 will impact on the aftermarket in a few years time. However, the breadth of services and products offered by the company

and its franchisees mean that it is well positioned to ensure continual growth. “We have a number of product divisions within our business, some of which are niche divisions based on consumer discretionary spend,” says Mr Espinoza. “These products are sold primarily through our franchisees, which, over the years have diversified their stock, adding non-automotive ranges to the core vehicle after sales items on offer.” While these divisions have suffered during the recession, as customers drew in their belts, with the recovery that will inevitably take place, sales have started to pick up. “Taking our Midas franchise as an example, we profiled our existing customer base in these stores, concluding that the type of person walking through the door is someone who enjoys DIY and out-door pursuits, so we cater to that market too.” As such, these shops carry products targeted at this kind of customer, such as outdoor, camping and fishing equipment, and other items that are not necessarily directly related to the auto after-care market. Aside from the commercial aspect of the business, the company has an important set

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Midas Group FEATURE

of core values centred on the notion of social upliftment. The largest and most important initiative to come from this is the adoption of three schools by Midas Group, “about six years ago, when we decided that we wanted to put something back into the community, we asked our shop stewards to canvass our staff in the warehouses for suggestions as to what we could do,” says Mr Espinoza, “they suggested helping a particular school located in a poor area on the outskirts of Johannesburg. The government funds received by the school was inadequate, so we decided to approach the headmistress and offer additional finance.” Since starting this relationship, the firm has been involved in building new classrooms, helping to nearly quadruple the number of pupils in attendance, as well as paying for extra teachers, building toilet blocks and paving the playing field. Most recently, the

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Armstrong Holdings As part of the Tenneco Industrial Group – one of America’s leading industrial groups, Monroe is the largest independent producer of ride control products in the world. In 1997, Tenneco Automotive and Armstrong Holdings entered into a JV to manufacture and market ride control products in SA; these being distributed via the likes of Midas and most franchise fitment groups, as well as various independent outlets. Producing over 60 million shock absorbers per year and with an annual turnover of approximately R6 billion, 55% of Monroe’s production is geared towards the manufacturing of original equipment for most well-known brands of car – including 90% of those driven in SA. Monroe are also responsible for the distribution of the Tenneco ‘Rancho’ product – America’s best selling off-road specialist brand, with a unique nine setting adjustment.

Midas Group FEATURE

company has attracted local media attention while installing a soccer sports field. Midas Group has also adopted another two schools, one in Port Elizabeth and one in Durban. While these three schools form the spine of the companyâ&#x20AC;&#x2122;s social upliftment programme, there are also other initiatives in place, such as the bursary programme offered to exceptional pupils at the Johannesburg school to enable them to continue their studies to standard 10. As well as encouraging education in the outside world, the company also places great importance on the training and up skilling of its employees. Due to its size, the business is covered by the South African Skills

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Schaeffler South Africa Automotive Aftermarket, through its brands LuK, INA and FAG is proud to be a supplier to the Midas Group! The Midas Group is a major distributor of Schaeffler Group products through its National Wholesale and Retail structures to independent workshops, fitment centres and end users. In order to optimally maintain an excellent working relationship, Schaeffler South Africa, with the only OE passenger car clutch manufacturing facility in the country, has invested substantially in production, distribution, warehousing, technical and sales support infrastructure. Schaeffler South Africa, a member of the Schaeffler Group

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Midas Group FEATURE

Development Act, where all staff members are assessed for potential training needs. A sign of how seriously Midas Group takes its obligations under the act is itâ&#x20AC;&#x2122;s ABET training scheme. While management level staff may be sent to universities or colleges for short training courses, the company cares and provides for those employees in need of basic literacy skills in house though ABET, so there is no upheaval with them needing to travel further a field. In addition to these mandated educational and training elements, the Group also has a state-of-theart diesel training centre. This is the area of largest capital investment in technology, to ensure that it is constantly at the cutting edge of new developments in diesel vehicles. This centre offers knowledge transfer to Midasâ&#x20AC;&#x2122; customers and their technicians, ensuring that they are, in turn, able to offer the best to their clients.

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The company has an important set of core values centred on the notion of social upliftment

Midas Group is innovative, socially and environmentally aware and responsible and client conscious and it is these attributes that have put it into the strong position it is today. While warehousing and selling stock is the foundation of its business, it is the companyâ&#x20AC;&#x2122;s commitment to good service and building a relationship with its clients that has made it the market leader. While there are challenges ahead in the automotive after sales market, Midas Group has positioned itself in such a way that it can counterbalance them through its auxiliary product ranges. As the company continues to grow and mature, it will maintain its place at the forefront of the industry, demonstrating just exactly what best practice means in the sector. END

CELEBRATING THE POWER OF ENDURING RELATIONSHIPS

Willard Batteries has enjoyed a long and fruitful relationship with Midas over the years and looks forward to more of the same in years to come!

NEW LOOK

METRO POISED FOR MASSIVE COUNTER OFFENSIVE

After years on the slide, Metcash is transformed as Metro, and ready to seize market share. And dynamic new CEO Peter Dobson tells Colin Chinery, â&#x20AC;&#x153;We shall be concentrating on attacking every single competitor that we can go up against

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Metcash FEATURE

ifteen years ago Metcash was the biggest food business in the country. In its heyday it operated close to 300 stores in Southern and East Africa and operations in Australia. All seemed set on an ever-rising trajectory. What followed was like the funeral march of a gravity-challenged meringue. “There were cash-flow problems related to overstocking, some stores were in impractical locations and there was an oldschool management team,” says Maryla Masojada, director of research house ‘Trade Intelligence.’ “All sorts of things went wrong,” says CEO Peter Dodson. If not quite Metcrash, it had become Metcrunch

It’s my intention to increase sales by 50%. That sounds like a long shot but I promise you, it’s very do-able Dodson is the man brought in seven months ago to move Metcash back on track in South Africa’s annual R260b food business. This is the Fast Moving Consumer Goods (FMCG) sector, and Dodson, 59, could not be moving faster. From his office in Johannesburg’s Theta district he says, “You are talking to me almost at the brink of everything turning around at Metro.” Metro is the new collective brand name for five separate brands - Metro Cash ‘n Carry, Metro Supermarket, Metro Express, Metro Hybrid and Metro Liquor. Logo unchanged, but new colours; black and vivid orange. www.southafricamag.com 35

THE VALUE CHAIN FOR AFRICA Metcash will continue on its business transformation and growth trajectory through its adoption of the SAP Retail solution, says Martin Schirmer, sales director at SAP Africa. According to Schirmer “retailers were late adopters of standard software, and took the approach of developing their own software, because of the lack of a product that provided the holistic end-to-end retail type function. Metcash found itself in a similar predicament and undertook a strategic decision to adopt the SAP Retail application as the solution of choice”. The SAP for Retail solution portfolio combines SAP business suite applications with a broad set of integrated retail applications. The suite brings together the complete value chain for the customer, from initial consumer interactions at the point of sale, through the retail supply chain, to the enterprise back office in order to help retail companies operate efficiently in an increasingly competitive and challenging industry. Metcash, being a big retail brand, found value in the solution offering which provided the following ben-

efits: increased visibility which enables better decision-making, integration of all business processes and the ability to drive innovation. “The Retail industry is dynamic and is driven by consumer behaviour. It is therefore necessary to have a robust platform which enables

“Ultimately the SAP Retail application provides the necessary agility, provides a platform to drive innovation and enables the customer to have ‚one version of the truth.” Martin Schirmer, Sales Director, SAP and supports agility. Ultimately the SAP Retail application provides the necessary agility, provides a platform to drive innovation and enables the customer to have ‘one version of the truth’” says Schirmer. SAP Africa addresses the Sub-Saharan geography of 43 countries through five hubs: English speaking West Africa; East Africa; the Southern African Development Commu-

nity (SADC); Portuguese speaking Africa and French speaking Africa. SAP Africa’s client base numbers hundreds of reputed companies which range from small business to global organisations. These include retail chains Pick n Pay and Shoprite Checkers, mining company Anglo Platinum, agricultural services provider AFGRI, banking giants Standard Bank and Absa, Beverage company SAB Miller and food manufacturer Pioneer Foods.“Of the top fifty companies in South Africa at least 80% use SAP,” says Schirmer. SAP has been in the retail sector for more than ten years. “Since then we’ve made considerable progress particularly in South Africa, growing strongly into the key retailers. The

“SAP offers three key benefits: visibility into your business; agility especially in the area of dynamic processes; and ultimately driving innovation which is a prerequisite of a sustainable business.” Schirmer believes that what differentiates SAP from its competitors is its “go-to-market” approach which is based on Industry solutions with extensive industry content. “This ensures that we have the best business knowledge and related content embedded in our solutions. It’s what you do with that content that provides the organisation with its competitive advantage. In my opinion our Intellectual Property or content is generally stronger than that of our competitors which results in greater depth and breadth of our applications and that’s what people buy into” says Schirmer. In conclusion, Schirmer believes that SAP offers three key benefits: visibility into your business so you can make decisions pro-actively; agility especially in the area of dynamic processes; and ultimately driving innovation which is a prerequisite of a sustainable business.”

Massmart group was the first retail customer and more success followed through winning accounts like: Pick n Pay; Shoprite Checkers; and Metcash. Globally more than 8000 retailers rely on SAP software to remain competitive” says Schirmer.

SAP is the world’s leading provider of business software(*), offering applications and services that enable companies of all sizes and in more than 25 industries including automotive, utilities, travel and transport, consumer and package goods, discreet, banking and the public sector, become best-run businesses. With more than 97000 customers in over 120 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE, under the symbol “SAP”. For more information please call +27 11 235 6045 or visit http://www.sap.co.za

Metcash FEATURE

Business Connexion Business Connexion upgrades servers and systems for Metcash Metcash Africa has invested considerably in new hardware and IT systems over the last couple of years, with Business Connexion providing the solution design and deployment support for this sizeable project. Metcash Africa is one of the larger distributors of fast-moving consumer goods (FMCG) on the continent. Having wholesale and retail operations across South Africa, Metcash also has numerous branches in four other countries in the region: Lesotho, Swaziland, Namibia, and Malawi. With some 140 plus wholesale outlets within South Africa, Metcash depends on reliable systems to have a live overview of its operations. Other wellknown chains also fall under the Metcash umbrella, which includes, Wholesale Liquor Warehouse, Stax and the network of Friendly convenience stores. It became essential for Metcash Africa to upgrade their existing systems “This project is very large, encompassing everything from desktops to the main servers at the Ormonde head office in Johannesburg,” says John

Jenkins, chief executive, Business Connexion, Services Group.

service delivery to Metcash customers and suppliers.”

“Business Connexion has focused on the server, storage and back-office aspects of this extensive upgrade.”

Expertise contributed from Business Connexion’s side facilitated further improvements.

Metcash had an existing system that was based on an in-house, customised software solution and a variety of interconnected hardware on which it was running, both at the branches and at head office. This system had reached its limit in terms of processing and storage capacity. “The upgrade was essential,” says Jenkins. “Business Connexion was able to contribute the specialised consulting so that a number of key goals were achieved in the process. We were able to upgrade to the best available P595 IBM server technology and rationalise the complex connections between branches and head office to improve performance and reliability. In addition, the use of blade servers allows complete scalability for future needs.” “Simultaneously, this made an enormous contribution to the overall Metcash operation. The new solution provides better productivity for employees, improved workflow, better management and reporting and – last but not least – improved

D-Day at Metro “I’ve just finished the financial recapitalisation of the business”, says Dodson.” We’ve gone through a complete people re-structuring of the organisation, all the planning of turning the stores around, remodelling and rebuilding them, getting the ranges right, the entire IT system right.” Seven months on and now it’s D Day. The biggest innovation is the rolling out of hybrid stores servicing both individual shoppers and trade customers. “We are going hell for leather,” says Dodson. “In the next few weeks we start up with seventeen stores on the 38

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“A critical aspect for Metcash, as for practically any business, is disaster recovery (DR),” says Jenkins. New servers were installed, thus relegating the old IBM servers to a DR function, when required. “Metcash has immediately benefited from the more powerful, reliable and stable production environment that the new hardware and software provides. The reduced burden on the company’s IT staff is a major contribution in itself.” Metcash’s investment in the new system should lead to reduced operational costs, improved productivity and service delivery – thus fulfilling the primary objectives of the project. “Looking ahead, the whole system will be integrated through VSAT connections to outlets throughout South Africa and neighbouring countries,” says Jenkins. “This is work in progress and it will enable the Metcash group to have efficient, reliable, reporting and management of their geographically diverse operations.”

conversion route. And until they are converted, in the balance of the stores we will make our offer available to the retail public as well.” Of the R260b food sector 60% is owned by the retail market and 40% by wholesale. “Being in the wholesale market Metcash had never ventured into the retail market. So effectively they had cut out 60% of the market. And of course the retailers do exactly the same, cutting out 40%. But hybrids now offer to 100% of the market…that’s their potential business.” Dodson knows the rewards. Before arriving at Metcash he managed a company that nine years ago had been a group of family

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Metcash FEATURE

businesses. “We converted all the stores into hybrids and the turnovers rose in most instances by between 200 and 1,000%, with net profitability increasing from 1% net to 5% plus.”

The New Metro look Metro currently has 140 stores in South Africa, all cash and carries with no retailing component. Ten are trade centres - large ‘box stores’ of around 14,000 sq metres Outside South Africa there are a further twelve stores in Namibia, eleven cash n carries and one large ‘box store’. In Malawi 109 stores - 250 sq metre LV type stores - with six cash n carries in Swaziland and another four in Lesotho.

In the new Metro, cash n carry will be predominantly food, typically 15,000 SKUs – Stock Keeping Units - with non-food items such as small appliances, plates and mugs. By October 1st five central distribution centres will be open. “In the model we are creating in these hybrids we shall be taking these big box stores – the Trade Centres - cut them in half and put bakeries, butcheries, hot foods and very large perishable departments into the food arena And in the half set we move out of we shall be introducing other line shops bottle stores, pharmacies, hardware stores et al. “We will be in one side of the building and another range of tenants going into the other. I will be cutting the physical space by 50%, 42

www.southafricamag.com

We’ll bring food into your homes at a hell of a lot cheaper price than you’ve been paying historically

but it’s my intention to increase sales by 50%. That sounds like a long shot but I promise you, it’s very do-able.” As elsewhere in the world, recession has cost South Africa enormous job losses. “But our losses have been really really large. At the moment unemployment here is approaching 30% and it’s a torrid time for everybody. So while the market is worth R260b, its growth if anything is just about flat on last year.

Competitors beware “So the only opportunity for anybody in this industry is to take market share away from competitors. And certainly that is our intention in Metro. We shall be concentrating on attacking every single competitor that we can go up against.”

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Metcash FEATURE

Supermarket chains in South Africa operate on margins of between 22% and 24% including rebate. For cash and carry wholesale operations says Peter Dodson, it’s almost half that margin - between 13 and 14%. “And now with us entering the hybrid business, once we allow retail customers into our stores it’s going to be extremely difficult for the retailers to compete on price, given that both of us buy at almost exactly the same price. “I regard anybody that distributes and sells food as a competitor. There are four major supermarket chains; number one is Pick n Pay, the next Shoprite, the third is Spar and the fourth a group of companies called Massmart.

ideas. He will shake things up.” So what was his first impression on day one at the office? “We are minute compared with the others but what I saw was a gigantic opportunity. I’ve known the stores for many many years. In the early 1990s Metcash was the largest food business in South Africa because at that stage they owned Metro in Australia which was a very large component of the business. “Fifteen years ago they became the first food business in South Africa to go through the R50b mark. The other chains, Pick n Pay, Shoprite and Massmart went through about 18 months ago for the first time. “So this used to be an enormous business. But about five years ago they sold out of the Australian operation and underwent a management buy-out. Since then they’ve had

Metcash has gone into the doldrums in South Africa in the last ten years… very very badly “You then have another component to the distribution of food, the larger, more formal independent distributors. And these days they are mostly hybrids – very few are just wholesale or cash-and-carry. “The total of these stores is close to 20% of the market. So even though they are a substantial part of the market, the big chains in South Africa have often been quite arrogant in not recognising the collective strength of these chaps. More recently people like the Massmart Group have started recognising the achievement and risk of these independents.”

‘He will shake things up’ Masojada describes Dodson as a “highly respected retailer, not afraid to pioneer new 44

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a very hard time of it, a really really hard time. “Metcash has gone into the doldrums in South Africa in the last ten years… very very badly. We have not kept pace with the market and very little has been spent on the repairs and maintenance of our stores which are now looking incredibly old, shabby, and unfriendly towards consumers. “When I came in I could see what we needed to do urgently, not only from a store point of view and a customer point of view. But also structurally we had to change before we could go forward. Most of these things are now in place and the business has been stripped of debt. “We have just re-capitalised the entire group. I raised R300m on a rights issue to start the whole redevelopment of our entire stores programme and to convert everything

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www.ese-sa.co.za from cash-and-carry wholesale into hybrid cash-and-carry. “The banks, who had an enormous amount of debt in this business, have converted all that debt into equity because they like new story we are going to put together here. They have absolute belief in it.”

Cheaper food is on your way The secret of war, said Napoleon, is communications. And Dodson moves into his revolution with 5,500 staff in new corporate uniforms, an upbeat identity, and a monthly briefing. “People and communication are very important, and the communication of everything that we have done and are doing goes out to our staff by video every month. I have personally been around every single one of our stores in the group and I will do so twice, to every store every year.” And his message for the South African shopper? “We’ll bring food into your homes at a hell of a lot cheaper price than you’ve been paying historically.” END

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HYUNDAI

ON FAST TRACK AS T H E NE X T T O Y O T A

Hyundai is now the worldâ&#x20AC;&#x2122;s fourth largest auto manufacturer; the frog that amazed by turning into the handsome Prince. Colin Chinery talks to Hyundai South Africaâ&#x20AC;&#x2122;s Marketing Director Stanley Anderson about a brand that is taking on the old giants and winning.

www.southafricamag.com

Hyundai FEATURE

emember the perennial status tag for Hyundai…’Not Ready for Prime Time’? Well into the baggage of history it goes. For Hyundai, Prime Time is here. Last autumn the Korean automaker leapfrogged past Ford to become the world’s fourth largest producer. And according to Jez Frampton, CEO of international consulting agency Interbrand, Hyundai Motor’s global brand recognition is set to grow as Japanese rival Toyota Motor Corp deals with an expanding recall. “They seem to be a brand that’s moving and shaking. Toyota has a great brand. Hyundai is in the process of building a great brand.”

At Hyundai South Africa we are really flying With passenger car share 10% and rising, Hyundai South Africa’s Marketing Director Stanley Anderson is no less bullish.” At Hyundai South Africa we are really flying at the moment. I’m trying to dig out the exact reasons but I’m too busy selling cars!” Among them the recently-launched supermini Hyundai i20: stylish and spacious, combining comfort, safety and reliability in a package both affordable and economical. And latest of the fast-sellers is the Hyundai iX35, successor to the mighty Tucson, which along with the i20s predecessor the Getz, Anderson attributes the five year resurgence of the once Death’s Door Hyundai South Africa brand. With the i10, i20 and i30 already available here, the fourth-generation compact SUV has dropped the Tucson badge and emerged as the iX35. “Within two and half weeks of its launch we’ve already doubled the average monthly www.southafricamag.com 47

Hyundai FEATURE

Tucson sales” says Anderson, 45 year old exMercedes exec. The new iX35 Hyundai is a sleek crossover of athletic proportions. It’s bigger, bears a sharper-looking facade and comes with a luxurious interior cabin as part of a move up market. Pitched as an urban car rather than an outdoor 4×4, this stylish newcomer is equipped with the newest fuel-efficient engines and 6-speed manual and automatic transmissions. “As a family all-rounder with decent soft-road capability,” says motoring writer Dave Abrahams, “it fits the bill with style and comfort at prices that’ll have its competitors very worried indeed.” The new iX35 represents the evolution of the brand’s exterior and interior design, through the introduction of ‘fluidic sculpture’, an architectural language which in the words of Thomas Buerkle, Chief

Designer at Hyundai Motor Europe, gives a first impression of a “striking appearance generated through feminine sculptural layers combined with broad, athletic proportions.” “Hyundai is benefiting from a perfect storm,” says James Bell, market analyst for Kelley Blue Book. “It’s a result of introducing new products while Honda’s mainstream vehicles, like the CR-V and Accord, are a bit stale, and Toyota is experiencing a huge consumer-perception crisis.” Hyundai surpassed both Toyota and Honda in February in Kelley Blue Book’s ranking to become No. 1 in customer loyalty. And says Anderson, the brand’s new drive is Quality. “We want people to say they are buying Hyundai not because of its value for money but because of its quality. “With the iX35 we are starting to attract a different customer. We are seeing BMWs

Hyundai is now becoming the focus in South Africa

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and Mercedes Benz being traded in on iX35s. People are looking at the BMW X1 just launched and saying, for R60-R70, 000 less the iX35 has better spec, is the better looking vehicle, and ‘I’ll buy the Hyundai’. “So the resistance to the brand, especially in the premium segment has definitely declined a lot. I’d say this has happened over the last 18 months since we launched the i20 which has also been extremely successful. Through communications, marketing and quality, Hyundai is now becoming the focus in South Africa. “There is money out there and people want the new models and the new cars. They’ve recovered, they are back on track as far as factors like the home loan and bond payments, and there’s a very positive sentiment across South Africa. And I think the World Cup’s got a lot to do with it. We’ve launched a couple of promotions around the World Cup and this is doing the brand a lot of good. People are excited about 2010 and when they are positive they may buy.”

Long renowned for high spec and value for money, Hyundai is developing a reputation for reliability, backed by a five year warranty. It is a brand moving up from the ‘Inexpensive’ to the ‘Affordable.’ “We’ve got a fantastic range of vehicles, one of the best in the market even against Toyota and VW in terms of price and spec levels,” says Stanley Anderson. For Hyundai SA, dealership relations, after sales service, customer care and staff training and retention are core to success. “We communicate extremely well with our dealers, fifty per cent of whom are independently-owned. For four years in a row we have come out top in a survey in which dealers’ rate manufacturers/importers. “Customer service – especially after sales service - is paramount for us. We tell our service managers that the salesman sells the first Hyundai and the workshops the second and third.” Staff training and retention is critical says Anderson. Hyundai South Africa has a www.southafricamag.com 49

Hyundai FEATURE

dedicated training centre and sponsors and equips six State technical schools. Internal recruitment and promotion is another priority. One example; After Sales Director Michael Rohde started on the bench twenty years ago. In 2008 the South African auto market dropped by 50% and last year by another 25%. Despite this Hyundai SA sold the same volume in 2009 as in 2008, gaining 1.5% share of a declining market. “One of the main impacts in our market was the interest rate. It went up to 15.5%, but over the last 18 months has come down and is now sitting at 10%. This makes a big difference in terms of affordability and finance approvals.”

As interest rates came down the market bottomed out. Resurgence appeared at end of last year and up to April 2010 the SA’s market is up 15% while Hyundai SA sales increased by 75% year on year. “When interest rates hit those highs major bank car repossessions climbed to 7,000 a month in a market of 25,000 cars a month. A huge proportion of new vehicle sales were repossessed and most of the cars auctioned were less than 18 months old. Customers became clever, knowing they could get a car at 60% -70% off market value. “The banks took an absolute hiding. And for the South African auto sector this had more impact than the global recession as such.”

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Anderson moved to Hyundai SA at the start of 2001, shortly after acquisition by Imperial’s distribution arm, Associated Motor Holdings had saved it from liquidation. “I’ve never been scared of a challenge. At Mercedes Benz I took over the Colt pick ups, launched a new range and in three years brought it up to be one of the top three light commercial vehicle sellers. “I was head hunted for this position at Hyundai and I thought well, there is nothing like a challenge. I believe its much easier getting to the top than staying there. “The first three years were hell. We had six and a half thousands cars in stock and were retailing 200 a month at that time. Fleet companies wouldn’t see us, rental companies wouldn’t buy our cars. That’s all gone. This year we’ll sell 10,000 cars to rental companies. “I always say that with a good product you can build a brand. We are a serious player in the market and we are going to be the next Toyota.” END

CUSTOMISED… HARMONISED… JONSSONISED For South African workwear manufacturing leaders Jonsson, it’s more than pride in appearance. “Whether you are an employee, a customer or a supplier, once you’ve been touched by the brand you are ‘Jonssonised’”, Group CEO Nick Jonsson tells Colin Chinery.

our companies, one group, and a single driving culture and vision: workwear manufacturing leaders Jonsson are a striking exemplar of South African business dynamism and growth. Formed in 1955 and re-constructed twelve years ago, the Durban-based Jonsson Work Wear Group is now one of Africa’s leading workwear brands, with 2500 employees and returning each year since 1999 an annual compound growth in excess of 30%. And if you think workwear is workaday you haven’t shared the company and enthusiasm of Nick Jonsson. The brand is not only about the label says the 44 year old Group CEO. “It’s about the product, the quality, and the service. “From the way we do things to the way we treat people. Whether you’re an employee, a customer or a supplier, once you have been touched by the brand you are ‘Jonssonised.’” Pressed for a definition Jonsson says no one can understand his business until they join

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Jonsson Workwear FEATURE

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Jonsson Workwear FEATURE

him on a tour. ”Every single thing we do we’ve got to be the best in the world. Coming second has no place in our business. We make sure our factories have the best equipment, we train our people properly, and our distribution centres are laid out magnificently. “If you walked into our offices and didn’t know we were in workwear you’d probably think we were a more creative business, perhaps an advertising agency. “We encourage creativity and independence among all our staff and have an unbelievable attitude and total obsession with getting the job done right.” Originally a family business started by his father, workwear had been just one component of its clothing manufacturing operation. But by the time Nick Jonsson took over twelve years ago it was accounting for 35% of turnover. “The business always had a good reputation but I realised very strongly that workwear was where I could build a serious business.” With South Africa in the throes of huge political change, and major problems for manufacturing, Jonsson closed all non-

workwear parts of the business. What remained was an operation employing just under 300, “and making some pretty ordinary products. “We changed pretty well everything we did – the only thing left was that it was called Jonsson. And luckily for us it’s worked really well. “The first thing we did was to start making terrific products, products that we were so proud of and which we knew wouldn’t fail us, that we could sell with confidence and would change the whole way workwear was perceived by people in southern Africa.” The potentially road-blocking perception factor and the necessity of transforming it into a positive, has been central to Jonsson’s vision and success. “This has always been a market supplied by cheap products that added no value to the wearer. We set about changing that perception to show to both purchasers and wearers that work clothing is a seriously important part of work life, turning it from being a dead overhead of little value beyond satisfying a need, to a spend where it actually added value to the business. “If you clothe people properly you increase their performance and make them proud of the brand they are working for. And customers then feel differently about their suppliers. “If you are finding solutions for people regarding their supply chain you are adding a huge amount of value. So on many fronts we have changed the perception of workwear in South Africa, and I’m happy to say we go from strength to strength.” Four independently-managed companies make up the Jonsson Group; Jonsson Workwear – 33% of whose output is exported,

If you clothe people properly you increase their performance and make them proud of the brand they are working for

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Alexander Fraser Group INTERNATIONAL TRADE & TRADE FINANCE

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Jonsson Workwear FEATURE

chiefly to Europe and Australia (where it will shortly be setting up a factory), Jonsson Uniform Solution supplying bespoke products and service to major supermarket groups, restaurant chains and large security and cleaning companies, Jonsson Manufacturing, and Jonsson International, the global sales division based on the Isle of Man off the north west coast of England. Jonsson has recently moved into footwear – “we think this is going to be the next huge growth area in our business” and safety equipment and appliances. “Workplace health and safety is getting more attention that previously and I feel it will grow even more,” says Nick Jonsson. “With the opening up of our economy over the last 15 years and many of our big businesses listed abroad, there’s been a great deal more talk about health and safety, especially in the mining sector. “Anglo American for example has put a huge emphasis on health and safety and this has had a big effect in South Africa. It’s got

a long way to go but there’s no doubt it’s become much more important.” Jonsson’s declaration of performance is unequivocal: unrivalled quality and service, a unique understanding of its clients markets, form and function in every item produced, tailored solutions for each and every client, and local and international experience. “When you’ve been manufacturing and delivering world-class workwear for over half a century, your experience is as valuable as your product. What keeps us ahead is not our ability to meet our customer’s demands but our ability to exceed them.” Recruitment is a key function, with Jonsson looking for those with strong values “and who are brilliant to be around. “I’m not really interested in how good they are at operations or selling or warehousing or whatever. We want to attract people who want for the business what I want for the business. Everything we do is different, we are swimming against the tide but the bottom line is that it’s worked. “We say everyone who works here has got to be ‘Jonssonised’ because we are different from other firms. And over a period of time our customers hopefully also become ‘Jonssonised’ because they suddenly set their workwear or uniform requirements at a much higher level. We have terrific supplier relationships and we work very hard at this. We want them prosper by doing business with us.” Leadership unsurprisingly, is another Jonsson ‘Must.’ “Right from the lowest levels

We’ve never made an acquisition; we’ve started everything ourselves from scratch

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For further information please contact us using the following contact information: PO Box 105, King William’s Town, 5600 South Africa Tel: +27 (0) 40 608 6200 Fax: +27 (0) 40 608 6334 E-Mail: Kelvyn Breetzke : kbreetzke@dagama.co.za Export Contact - Mike Toet : mtoet@dagama.co.za Shweshwe Contact - Helen Bester : hbester@dagama.co.za National Sales Executive - Peter Campbell : pcampbell@dagama.co.za

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we teach leadership and make sure people government’s clinics. Lesotho in winter is take responsibility. We like to identify leaders coldest place on Earth and a lot of people ACA Flyer.indd the 1 early on and help them develop. Some think fall ill, so we feed them fortified soup two or leadership is only the top few people but I three times a day.” believe it is right down.” Jonsson denies the label of paternalist. In twelve years the Group has never worked “Our business is a meritocracy, but it’s a short-time day, a record of which Nick important to us that everyone who works for Jonsson is proud. “It’s extremely unusual in us is treated with dignity and respect. Just our industry. In factories in Africa people don’t because someone has a low level job doesn’t get a great deal of money, and at all costs mean they are any different to me. We’ve all we make sure they do not have to work short got a role to play. time. I think this is one reason why we do such “We’ve never made an acquisition; we’ve good work; our people trust us.” started everything ourselves from scratch. Our In Lesotho, where it has four factories with a business is going from strength to strength, fifth on stream, Jonsson Workwear set up a clinic and to an extent we limit our growth so we where its employees have easy access to doctors, don’t get ahead of ourselves. an optometrist, and two HIV counsellors. “We see the next three years as extremely “We supply our staff with all the drugs they exciting and there’s no doubt we’ll achieve need. It saves them time and they are seen over 30% per annum over this period. within an hour. Traditionally they would leave “You know, we don’t realise the power we work for at least a day to go to a doctor and have to change people’s perceptions about lose a whole day’s pay. their own brand through our input, and to “And we are giving them better health change people’s business. We are faced with care than they are getting from their some very exciting possibilities.” END

2010/06/02 4:

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Drivingforce T he C ountry â&#x20AC;&#x2122; s

Jane Bordenave talks to COO of Busmark 2000, Hermann Staude, about how his company has become the leading provider of buses in South Africa

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Busmark 2000 FEATURE

aving started as a small school bus manufacturer in 1974, Busmark 2000 has grown to become one of the leading creators of communal transport in Africa. The company has experienced three stages of growth over the past 36 years, from its initial maximum production capacity of eight buses it grew o to 20 per month in 1989, increasing again in 2000 to its current monthly output of up to 90 busses. Over this period, the company has diversified its operations and now produces vehicles for municipalities and private companies as well as schools. The diversification that took place over the

past 10 years was enabled by splitting the company into three segments, as Hermann Staude, the company’s Chief Operating Officer explains, “originally, we were a custom-build business, as was standard for the market at the time. This was largely the reason for our low output. However, in 2000 we split our operations into custom, semicustom and modular products. When we did this, we became the first South African bus manufacturer to introduce such a unique production line system and this in itself drove our market share and was the catalyst for the company’s recent phenomenal growth.” In fact, the growth brought about through this www.southafricamag.com 59

Busmark 2000 FEATURE

diversification has led Busmark 2000 to the position of being the single largest supplier of buses in South Africa, with a market share of 37%. Additionally, the company sells into most of the countries in southern Africa, and is now also the largest provider in Mozambique. The firm’s range of vehicles is very varied and due to its diverse manufacturing capabilities, it attracts many different kinds of client. One of the sectors that benefits most from the semi-custom production facilities is the mining industry, “these companies want a modular product, in that they want something that is easy to keep on the road, find spare parts for and so on,” explains Mr Staude, “but there’s a lot of customisation that needs to be done to enable the bus to deal with

conditions at the mine – a stock standard city bus wont work in the extreme environment you find there.” Totally custom buses are normally provided to two sectors, the safari industry and special services industry such as mobile libraries. With the safari industry, the needs of each tour operator are different, as they themselves are offering different products from each other and operating in different areas. Thus, they present contrasting specifications, which the company needs to respond to on an individual basis. Library buses travel long distances, visiting villages that do not have their own municipal library or even electric power. These vehicles carry their own on board power generator, computers and toilet, as well as books, offering the citizens of each town the chance to exchange

We are very proud of the structure of all our vehicles, whether they are custom built or fully assembled books and use pubic computers, even though there is not a permanent facility available. Other than the company’s diverse range of product possibilities and high production run numbers, one of the things that makes it so attractive to customers is the safety of the buses it produces. Due to the nature of South African geography, outside of urban centres the quality of the roads connecting villages, towns and cities can be less than ideal. Sadly, this has lead to a number of incidents where buses have crashed or rolled over, injuring or killing its occupants. For Busmark 2000, it is of utmost importance to ensure that if one of their vehicles is involved in a crash then the passengers inside will be safe, “we have a substantial research and development department, where we do a lot of in house testing on the structural integrity of 60

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TRIDENT STERLING TUBE Trident Steel is an AVENG group company with our main operations centrally situated in Roodekop, Germiston and other facilities in Alrode, Durban, Port Elizabeth and Cape Town. We supply a wide product range to the steel industry in South Africa as well as internationally from our extensive steel yards, modern and comprehensive steel processing and steel service centers, specialty steel division and tube manufacturing plant. We offer our customers a quality product, delivered on time at a competitive price. Our growth is guaranteed by the contribution we make to the success of our customers. www.trident.co.za Graham MacDonald Field Sales Manager +27 83 229 7278 / +27 11 908 1806 Fax 011 864 3093 Graham.Macdonald@trident.co.za

Busmark 2000 FEATURE

city of Cape Town’s new public transport system. Having seen chassisless buses in operation in Europe, the city planners approached the company to Specialising in labour hire build a fleet for them – a project that had never been undertaken in South Africa before. To overcome the problem PROVIDING LABOUR HIRE TO of inexperience in this particular field, • Mining sector • Metal industry the firm entered into a partnership with • Petrochemical industry • Engineering industry Optare, a UK-based company that was • Plastics and chemical • Motor industry amongst the first to develop this style • Building and construction • Road and freight industry of vehicle, “this is a very unique design, • Warehousing • Scaffolding and there is no sense in us setting out to reinvent the wheel,” says Mr Staude, • Tel: (011) 907 0390 • Fax: 0866 875 488 “so working with Optare on this project • E-mail: wayne@tymes.co.za www.tymes.co.za was the obvious solution.” The first bus for the scheme has been produced at the buses,” says Mr Staude, “we are very proud Optare’s English plant, to be shipped over to of the structure of all our vehicles, whether Busmark 2000 as a prototype for CKD assembly they are custom built or fully assembled. We development. The companies are now working go over and above the legal requirements together to enable more localised production in regarding vehicle safety and have a structure South Africa. that has been proven to save lives: Our buses So what new developments are in store for have been involved in a number of extreme Busmark 2000? “There is the possibility to rollover events – much more damaging than move into Compressed Natural Gas Buses, legal requirements – and in every one there especially in Mozambique as it is a plentiful were no fatalities at all, whereas often such resource in that country, but some South accidents can resulting African cities are in 20 or even 50 people also looking into dead.” As a result of it,” says Mr Staude, this highly impressive “over the next five safety record, the years, because of company has acquired the rising demand a new contract for city busses, supplying buses to we believe our Kenya, where there production-line plant were over 700 fatalities in the last two years as a will double in size, as will our custom plant, result of bus crashes. while the semi-custom side of our business Despite the fact that Busmark 2000 has will probably shrink. We are also working to an impressive range of products already on become a public company in five years time.” offer, one of the main challenges it faces is the It is clear that the bus building business in rapidly changing face of what its customers are South Africa is still a growth market and that, looking for. These changing demands don’t just having manoeuvred itself to the front of the cover small tweaks to existing bus designs, but field in terms of quality, safety and production wholesale redevelopment of what a bus is and capabilities, Busmark 2000 is the company to what it can do. One example of such event is the lead this market into the future. END © Creamer Media 280510CG

T S Tymes Labour Solutions L

Over the next five years we believe our production-line plant will double in size

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Safika Holdings FEATURE

A MARRIAGE OF

ETHICS AMBITION In a climate where many businesses are struggling, Safika Holdings is flourishing – so what’s their story? Erica Wark speaks with Moss Ngoasheng, CEO of Safika Holdings Pty

afika’s financial strength comes from the diversity of their portfolio. They have been able to make shrewd investments in multiple sectors as they have acquired specialist knowledge in many fields. In fact, if you’re wondering just how broad the investment portfolio is then here are some sectors they currently invest and operate in: Financial services, construction, manufacturing, IT, telecommunications, media, water management, gaming. Their door is always open door to opportunities for investment, and they are well positioned to now move into new market sectors, and new markets geographically too. You find here a local company with global perspective and global ambition. www.southafricamag.com 65

Safika Holdings FEATURE

Safika is a company with its finger on the pulse of South Africa’s economy. They can assist companies to proactively seek areas for business and guide businesses to securing vital contracts. If we take the World Cup as an example, they have assisted three companies in their portfolio to secure contracts surrounding this event. Again we find great diversity here: A furnishings manufacturer: providing furniture for hotel expansion projects A construction business: providing cement A utilities provider: providing water tanks for many municipalities The benefits for these companies are many; obviously these are opportunities for lucrative contracts, secondly it means that companies can showcase their products and services on a large scale, moreover, it is also an opportunity to support South Africa in the global forum.

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Essentially, if you’re on board with Safika, then you can trust that your investment or your company will have a view from the forefront of economic developments – this is because you have Moss Ngoasheng at the helm. Before leading Safika, Ngoasheng has been an Industrial Economist by trade, and after co-founding Safika in 1995, he then actually became Economic Advisor to the President of South Africa. Ngoasheng’s time is now devoted to leading Safika forward, and so you’re in excellent hands. We’ve talked lots about ‘business’ now, and certainly their track record is impressive, and their future prospects exciting, but a side of Safika that has perhaps impressed me most is that they are not only a company with big ambition, but also big heart. I’ve been learning about who is directly benefitting from their business successes….. and that is South Africa and South Africans!

© 2010 KPMG Services (Proprietary) Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in South Africa. MC5832

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Safika Holdings FEATURE

Safika have been widely recognised for their ethical work. This is something very important to Ngoasheng, who firmly believes that “the social challenges of South Africa cannot be addressed by government alone” and recognises that businesses have a social responsibility, and potential to affect change in this arena. Safika, therefore, truly live this philosophy – with 80% of their work force, of over 1500 people, having come from disadvantaged backgrounds. Outside of their business activities they fund many charitable organisations, which means quality of life is affected across many communities in South Africa. Safika works with a number of different partners on these activities. Some of the social projects include: The Trust for Community Outreach and Education – a collective of six organisations working in rural development in various parts of the country focusing on adult basic education; clean water, access to roads, clinics and grazing fields, and enriching communities by providing fertilizer and seeds to help communities become self sufficient. Education Africa – who, among others, distribute mountain bikes to underresourced schools, builds affordable education facilities in impoverished regions of South Africa, and supports early childhood development through training and supporting care givers. SAMUN – South African Model of the United Nations Ditikeni – an investment company with 19 non-government organisations as shareholders. These NGOs have programmes focussing on rural development, conflict resolution, early childhood development, crime prevention, student support, and supporting church organisations in their community development work. The 19 NGOs have over 2 million beneficiaries. 68

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In this arena Safika are switching from corporate investment to instead investing in people and communities who are in need of support within South Africa. Therefore, whether your dream is to build a business, to be able to provide a meal for your family, or to gain access to education, Safika is helping people all over South Africa realise their ambitions. With Safika you find a combination of two powerful components; a foundation of sound business acumen, and an ambition to function is as a conduit, moving people and businesses from aspirations to realisation. The result of this alchemy is a success that is selfperpetuating. Every company that they invest in, in turn will feed money back into the South African economy, in addition to Safika’s direct altruistic endeavours. How many companies can we really see out there who marry ambition and ethics like this? The integrity that underpins Safika’s business and philanthropic aims makes this company a rare find, and in my books a very desirable one to work with. For more information please visit www.safika.co.za END

Company name FEATURE

Legacy Modutec is a full-service furniture designer and manufacturer located in Wynberg (Johannesburg) specializing in the corporate, hospitality and retail industries.

t: + 27 11 445 9830 f:+27 11 445 9831 41A 4th Street, Wynberg e: sean@modutec.co.za www.legacymodutec.co.za

Chartered Accountants & Registered Auditors

Travel Solutions with a difference.

Nwanda Incorporated

“Quality delivery” Our services include: • Accounting • Administration of Estates • Auditing • Consulting • Due Diligence • Forensic Auditing • Estate Planning & Preparation of Trusts & Wills • Financial Management Consulting • Internal Auditing • Investigations • Secretarial Services • Taxation

Physical Address: Cambridge Place Office Park • The ChambersCnr Kirkby and Oxford Rds • Bedford Gardens Postal Address: PO Box 751767 • Gardenview • 2047 Telephone: 011 622 0926 Fax: 011 622 7956

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Niche Travel Solutions

Contact Mohammed Jogee on 011 790 3477 or visit www.cummingtravel.co.za

A division of Tourvest Travel Services

Fueling the

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nation

Petroleum Agency SA FEATURE

hree weeks on and the oil continues to pump from the rogue BP drilling platform in the Gulf of Mexico. It’s the biggest oil disaster in U.S. history and a fractious economy and a fragile ecology will suffer. For BP the total cost of clean up and claims could reach $37 billion says Credit Suisse, and the Financial Times London tells us BP’s head man has admitted error - “BP ‘not prepared’ for spill’” Multi national giant BP has a slogan – ‘Beyond Petroleum.’ The sentiment – and more significantly the principle - is shared by Petroleum Agency South Africa. Though in this case without post-spillage irony.

SA environment protect ‘very strong’ For the Agency exploration goes in lockstep with environmental and resource stewardship. Environmental protection, says Dave van der Spuy, the man responsible for promoting South Africa’s offshore exploration, “plays a “very strong and important part in this organisation. “While we promote oil and gas exploration we are also the regulator. And we have a section that deals specifically with the environment.” Unsurprisingly the lessons and implications of the BP spillage have washed up on the Agency’s front door. “It’s made us look very very closely at the issue of financial guarantees and so on that companies present before being qualified to explore and operate in South Africa,” says van der Spuy, Petroleum Agency SA’s Manager for Resource Evaluation.

SA exploration safeguards ‘up front’ “We’ve always been particularly strong on this point. And I think that unlike many countries, we take the environment into consideration before granting a right. “All the issues around it, impact on environment and so on, have to be www.southafricamag.com 71

Petroleum Agency SA FEATURE

investigated, and there should be assurance that exploration and production will not damage the environment or particular issues relating to it. “All of this is done up front, which I think differentiates us from a lot of countries that grant rights and then worry about the environment afterwards. We are very strong on this issue.” The Agency has been soliciting bids for offshore acreage off the Southern and Western coasts of the country. “Currently we have some dozen local and international companies operating off shore South Africa with between 20 and 30 different exploration rights or permits,” says van der Spuy, a 48 year old geologist who began his career with the then national oil company as a geo chemist. ”On shore there are over 40 companies with issued exploration rights and around 60 applications still in process.” Among the possible offshore prospectors is Royal Dutch Shell, which recently won exploration rights in the Orange Basin deepwater area off South Africa’s west coast. The exploration area covers some 37,000 square kilometers - about the size of the Netherlands. Located in water between 500 metres and 4,000 metres deep, it has so far 72

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seen limited exploration activity. “The Orange Basin offers an exciting frontier exploration opportunity to apply the deep water technical ability we have built up around the world over the past three decades,” according to Ceri Powell, Executive Vice President International Exploration. “Things are certainly starting to look up for us so far as exploration is concerned,” says Dave van der Spuy. “The finalisation towards the end of last year of the Royalties Act gave certainties around the last outstanding issues that were preventing international explorers from proceeding with their exploration programmes.”

Offshore activity Onshore activity is concentrated largely on coal bed methane (CBM) in the Karoo coal bearing basin in the north and east. Over 40 licences already issued to companies exploring coal for methane. Anglo Operations, a subsidiary of Anglo American, is among the first to commit itself to the new resource, and plans to drill 39 new boreholes to assess its reserves, believed to exceed one trillion cubic feet. There is also recent and very strong interest in shale gas in the southern Karoo Basin.

NT ENERGY AFRICA (PTY) LTD Looking to the future with Coal Bed Methane exploration Specialising in the “Non Traditional Energy” field, NT Energy Africa are leading the way in South Africa in the search for Coal Bed Methane (“CBM”) Operating in four provinces, NT Energy, are fast approaching their first milestone, that of confirming “Total Gas in Place”, in the first of their Exploration Licences. In conjunction with their project managers and technical consultants “EPMC” cutting edge technology has been developed in South African. EPMC has assisted NT Energy in assessing the CBM potential of the South African Coal Seams. With local partners in place and Strategic Joint Venture Agreements concluded, NT Energy Africa is in a very favourable position to develop a real Clean Energy Source in South Africa.

NT ENERGY AFRICA Address: Unit 11,The Arena, Capital Hill Commercial Park, Le Roux Avenue, Midrand Tel: +27 (0)87 820 5910 Fax: +27 (0)86 511 0696 e-mail: info@ntenergy.co.za

Petroleum Agency SA FEATURE

in certain energy technologies; gas-toliquids, coal-to-liquids, and nuclear pebblebed technologies for example. However deepwater oil success would propel South Africa to the forefront of the continent’s leadership and energy development. And van der Spuy believes upping the percentage is a realistic expectation. “We have areas in the deep water that are as yet completely unexplored. Because of South Africa’s particular history, international exploration obviously stopped as sanctions against the previous regime came into place. “During that time exploration was only through the national oil company and it is only relatively recently that international explorers have returned to South Africa. At the same time the technology to explore in deeper water is becoming available and is being applied.” “So onshore’s looking very interesting. Probably the furthest along is Anglo Operations, working in the Waterburg Basin who has already conducted CBM production tests and appraisals. It seems to us that CBM onshore may develop into a new and quite interesting source of energy. Shale gas of course is completely unknown.” Total hydrocarbon production in South Africa currently accounts for approximately 10% of domestic needs, and compared with some other African states the country is a minor hydrocarbon producer. Small and depleting fields off the south coast in the Bredasdorp Basin have produced up to 25,000 barrels a day of liquids (oil plus condensate) and 190 million cubic feet a day of gas. This production is now in decline.

SA world leader But South Africa has a diverse industrial base, and unlike many other African producers, oil and gas exploration is not critical to the economy. It is a world leader 74

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Unexplored deep waters “The deeper water areas of the west coast south coast and east coasts remain almost completely unexplored. Looking at the existing seismic data that does exist, we have interpreted findings which we think are very encouraging, and I think some of the new operators share these feelings with us. “So yes I do think it is realistic to expect that we could reduce our dependence on imports through a far greater percentage than it is at the moment.” The main challenge for offshore exploration is the remoteness of South Africa from other exploration centres. “It’s difficult to get hold of drill rigs and drill ships at a reasonable rate. The engineering environment has challenges but this is not exclusive to South Africa… you have only to consider those in the North Sea for example.

Infrastructure challenges “A further challenge for South Africa is the lack of infrastructure. So if there is a discovery - particularly of gas - it would take time to develop. And in any event the exploration cycle

1C Barnes High Street London SW13 9LB United Kingom +44 20 8878 0212 +33 6 43 91 60 35

Aiming to boost South Africa’s oil production

is very very long in terms of the expectations of the public, and it will be a number of years before we can say confidently whether something is there or not.” Meantime the promotion of public and industry awareness of what is going on in the country’s oil and gas exploration fields is a crucial part of Petroleum Agency SA’s endeavours. “It’s absolutely important. The oil and gas industry in South Africa doesn’t have a very large presence in the public eye. Indigenous oil and gas provides a very small percentage so it’s very public, and certainly hasn’t the large presence of other extraction sectors like gold and diamond mining. “But I think with the increasing activities that are going on onshore and what we expect offshore in the future, it will become very important for us to increase awareness of the importance the industry is starting to grow for itself. “And a parallel objective is to increase the awareness of the role that Government

is playing – and particularly the Petroleum Agency – in ensuring that resources are exploited in a sustainable and responsible manner. It’s a particular angle of our outreach to the South African market.

International partnerships “Internationally our main aim is to attract explorers to share the risks of exploration with the South African state, and this is handled very much through oil and gas exploration trade shows.” New legislation has brought enhanced stability and equability. And with it says Dave van der Spuy, “a new interest in exploration in South Africa for onshore and unconventional sources of gas such as CBM and shale gas. Also for conventional exploration offshore for gas and oil, with new opportunities in deeper water. “Our message to the South African public and beyond is that this new interest and exploration will - hopefully in a few years time - reduce our imports of oil and gas.” END www.southafricamag.com 75

BUFFALO S O L D I E R S The municipality of Buffalo City has been facing problems in its operations and service delivery. The recently-appointed executive mayor and city manager are in the process of pulling the city together in time for the World Cup, Ruari McCallion reports.

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Buffalo City FEATURE

he 880,000 citizens of the municipality of Buffalo City deserve a better service than they have been receiving from their city government – and they are in the process of getting it. The largest municipality after the metro areas of Cape Town, Johannesburg, Pretoria and Durban, Buffalo City was created by the South African government’s reorganisation of local administration that was commenced in 1999. Buffalo City includes East London, King William’s Town, Bhisho and the surrounding villages within its municipal borders. It has to be conceded that the reorganisation did not go as well as was hoped – even the city’s garbage has not been properly collected. In 2009, Dr Lulama Zitha was seconded from the Office of Corporative Governance and Traditional Affairs to assist Buffalo City in its drive to transform itself into a forward-looking area, attractive to business, vibrant, and resident and tourist-friendly. She took up her duties in Spring 2010, as acting manager. Buffalo City starts with some obvious advantages, with glorious beaches and a pleasant year-round climate. It already has a major industrial employer, in Daimler-Benz’ assembly plant, and it has much less crime than Johannesburg. However, its once-strong textile industry has collapsed in the face of cheap imports from the Far East. Unemployment runs at over 30 per cent, the rural areas do not offer long-term career prospects and it is heavily dependent on the public sector. These are meaty problems for Dr Zitha and executive mayor Zukisa Faku, who has a background of activism and political involvement stretching back to the early 1980s. She is a firm believer in raising skills and employability through education at all levels.

“The economy of the municipality is unbalanced, with both employment and welfare support dependent upon the public sector,” said Dr Zitha. “The South African government’s welfare programme covers unemployed parents, chronic disease support and also a programme for low-income rented housing. There is free education for poorer families and Poor Grant Relief funding for the municipality. Water and electricity is subsidised. As a result, city tax receipts are not that high.” Which may indeed be the case but the city has not been good at spending even that. At a meeting in May 2010, Dr Zitha announced that the city had more than R1 billion available, which should be spent before June. Residents in East London have threatened to pay their rates into an escrow account, rather than to the city, because rubbish has not been collected. The response has been to launch a campaign and project called MAD, which stands for ‘Make a Difference’. The month of May saw words turn to action, as residents, young people, members of sports clubs and even parolees roll their sleeves up and set about cleaning up Dimbaza, near King William’s Town, on 12 May and Zwelitsha on 19 May. A similar clean-up day was scheduled for Mdantsane on 2 June. They swept the streets, closed down unlicensed rubbish dumping areas, provided more rubbish drop-off points, and picked up litter. It seems odd that there should be tax revenues in the city treasury but the streets are not being cleaned. “My objective is to ensure the implementation of the turnaround strategy and to ensure delivery of services,” said Dr Zitha. “I had to suspend a number of officials, who were simply not doing their work. There was money to construct and maintain roads –

We are seeking to recruit students who are able but disadvantaged and help them with their education

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Buffalo City FEATURE

it wasn’t happening. Money to collect rubbish wasn’t spent. We are starting to get people who can deliver services, especially to the poor areas. Within two days of my arrival, work started on building a 50km stretch of roads in Mdatsane, which is the largest township outside Soweto. A developer called Club View is now constructing the roads. We are getting private contractors to undertake refuse collection. We are also hiring people on shortterm, temporary bases to go round and do the jobs that need doing – collecting refuse, cutting the grass – and so we have even been able to create some employment opportunities.”

Other areas requiring urgent attention include the provision of low-cost housing and the installation of sanitation facilities. Eight hundred and fifty new units have been started but the elimination of the ‘bucket system’ – essentially, ‘slopping out’, as it is known in prisons – is behind schedule. “The bucket system was supposed to have been eradicated in 2007,” said Dr Zalitha. “We are implementing solutions that are costeffective and have an immediate impact, so that means chemical toilets. They don’t need heavy investment.” Because prospects have been poor locally, there has been a drift of young people to the metro areas. “We are seeking to recruit students who are able but disadvantaged and help them with their 78

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Amatola Water Providing sustainable bulk water services to Buffalo City Municipality Amatola Water provides various support services to Buffalo City Municipality, which range from bulk water supply to secondary services such as infrastructure development, water conservation and water demand management and a variety of implementation agent related services to municipal eradication backlog programmes. In addition to the Operations & Maintenance services provided, Amatola Water is currently assisting local government through project implementation services to eradicate backlogs for water and sanitation in rural schools and communities in and around Buffalo City Municipality.

education. After they qualify, we hope to retain them within the city. We are sending people for more advanced training, with the help of private partners. We have an internship programme, although that has to be improved. We meet regularly with Daimler-Benz in order to develop ongoing partnerships and are working with PricewaterhouseCooper on future skills development. We are looking to make Buffalo City attractive to the private sector.” Failure to mention the ongoing political infighting in Buffalo City would simply be a gloss painted over deep cracks. Different factions have disrupted meetings, seemingly more dedicated to frustrating opponents than in getting things done for the municipality. The help of senior officers of the ANC has been requested to sort differences out, restore discipline and get the city moving forward. “We want to see Buffalo City develop into a vibrant community, which effectively provides services to its people and is a place they are proud to live,” Dr Zulitha said. “We want to build tourism and compete with Cape Town and Durban. Buffalo City has a good port, car manufacturing and basic industrial infrastructure. We have an airport, very good weather and excellent prospects.” END

This is Amatola Water Amatola Water is a state-owned, non-profit business enterprise which serves as a multi-service, bulk water services provider. Its core aim is to assist local government in the effective development and sustainable provision of safe, reliable water supply and waste water services. With its headquarters in East London in the Eastern Cape Province, Amatola Water operates twelve plants and seven sub-regional, bulk distribution networks in a designated service area covering most of the Amathole and part of the Chris Hani District Municipalities. It offers comprehensive contract services to all local municipalities for water abstraction, treatment, bulk supply and water quality monitoring for domestic, industrial and agricultural use. Through effective partnerships with local government and water services authorities, we are committed to our vision of being the preferred bulk water services provider for the Eastern Cape.

Amatola House, 6 Lancaster Road, Vincent, 5247 Tel: +27 (43) 707 3700 â&#x20AC;˘ Fax: +27 (43) 707 3701

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Te e i n g o f f Jane Bordenave talks to General Manager of East London Golf Club, about the effect of hosting important golfing events has had, and how important competition is in the golfing world.

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ounded in 1893, East London Golf Club is one of the oldest clubs in South Africa. Located on the East Coast, the course offers magnificent views of the Indian Ocean and presents new challenges every day to even long time members. With over 1000 members and 70 employees, East London Golf Club is the largest club in the Border Golf Union area. The Club which has consistently been rated in the Top 20 courses in South Africa, has played host to the South African Open Championship on nine occasions, the South African Amateur Championship on 12 occasions and, as of 2009, it is the home of the Africa Open Tournament, “we’ve had many of the South African golfing greats play here over the years,” says Brenden Fourie, General Manager of the Club, “Gary Player, Bobby Locke and Ernie Els amongst others, have visited, and Retief Goosen won the Africa Open here in 2009.”

East London Golf Club FEATURE

This increase in championship and celebrity activity at the Club is more than just a badge of honour, though, it is also an important marketing hook. Currently, 70% of rounds played annually at the club are played by members, which makes up 50% of the annual revenue. Due to its location, the Club gets few visitors, South African or international, as Mr Fourie explains: “We are regarded as being off the Garden Route – the area around Port Elizabeth – so whereas golf clubs on the Garden Route may get upwards of 1000 international visitors per year, we see under 100.” However, one month after hosting the Africa Open Tournament, the club saw an increased number of international visitors come to play, “the Tournament is co-sanctioned by the European Tour and coverage of the competition was broadcast to 66 countries across five continents. Clearly

having this event here has helped to raise our profile amongst golfers in South Africa and across the world.” While numbers have died down as the winter season rolls in, Mr Fourie is hopeful that the publicity brought by the major sporting events held at the club will continue to increase visitor numbers. But increased media exposure isn’t the only consideration regarding East London Golf Club’s membership and visitor numbers: While competition is good for all businesses, in the world of golf the relationship between neighbouring clubs is more complex, “We are 130km from the nearest course that is of a similar level to us and, as most people don’t want to travel for an hour and a half when they go on a tour, this does impact negatively upon our visitor numbers,” says Mr Fourie. The reality for golf courses is that, without other competing facilities of a comparable www.southafricamag.com 81

East London Golf Club FEATURE

level within easy reach, you find yourself dependent entirely on the local population for business, with little hope of increasing the flow of visitor numbers. However, things are about to change for East London Golf Club – a new rival golf course is in the process of being built just across the Gonubie River. This situation is, of course, as Mr Fourie describes it ‘a double edged sword’; while the new course will almost certainly take away some of the rounds played at the East London Golf Club, it will help to attract new national and international visitors, boosting overall revenue. Sport is not the only side of East London Golf Club’s business, though: 45% of the club’s annual revenue comes from use of its function facilities. The club offers seven different conference facilities ranging in size and is a popular wedding venue. “Many local companies make use of our function facilities for conferences that may last from a day up to a week,” says Mr Fourie, “we also get a significant number of government departments holding meetings here, and the occasional group from outside the local area. As such, this is another important area of our business.” Situated in the Nahoon Point Nature Reserve, the natural environment is one of East London Golf Club’s most important assets and a big draw for potential 82

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Red Alert Red Alert is proud to be associated with the East London Golf Club and assisting to ensure it is one of the premier golfing facilities in the Eastern Cape. Club members and visitors enjoy a modern Halfway House which was sponsored and built by Red Alert.

customers. Upkeep of the club’s property with conservation and environmental concerns bourn in mind is therefore of great importance, and something that it takes very seriously, “our green keeper is well versed in environmental concerns regarding the club and the local area, so he knows what needs to be done and how to go about it,” Mr Fourie says, “most recently we have planted around 50 native

Gary Player, and Ernie Els amongst others, have visited, and Retief Goosen won the Africa Open here in 2009 trees as part of an ongoing project.” The Club has been working with the Nature Reserve to remove alien species of plant and replace them with South African ones, but this is not something that can be done over night. Many of the foreign species of plant that are present on the grounds are, in fact, mature trees that cannot simply be uprooted all at once. Although the club is planting both saplings and older trees, it will still take between 20 and 50 years for them to grow to the size of those that are in situ. This means that both the Club and the Nature Reserve are effectively working to nature’s time scale – this renaturalisation programme has been going on so far for ten years and still has a way to go. Nevertheless, this project has commercial benefits as well as environmental ones; golfers enjoy playing

courses that are well kept and that are beautiful to look at and be in. One of the clubâ&#x20AC;&#x2122;s largest recent investments has been in this area of improving player experience, having spent R4 million improving the greens and tee boxes. East London Golf Course is clearly a largely undiscovered gem, with beautiful surroundings and excellent facilities. Although it is off the beaten track, away from the South African golf clubs that receive the largest proportion of visiting golfers and are perhaps the most famous, it is East London that has been chosen to host the Africa Open Tournament. While increasing the number of rounds played at the Club is more complex than simply ramping up its marketing activities, being known as the home of Africa Open will no doubt increase interest amongst both international and domestic visitors. It is through this and its own work on maintaining all its facilities that will reveal East London Golf Club to be one of the jewels in the South African golfing crown. END

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M ON I E R P O I SED FO R SA

ROOFTOP REVOLUTION

Peak encounter. Two out of three South African homes have metal roofingâ&#x20AC;Ś a convention Severin Daniels of world concrete tile leader Monier is challenging head on.

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Monier Roofing FEATURE

he extraordinary diversity and richness of South Africa’s landscape, cultures, wild life and ecology never fails to enthral the visitor. But one feature of national life that surprises is a domestic near-uniformity: the typical home owners’ preference for metal roofs. “Those of us from Europe cannot imagine that metal sheeting forms 65% of the market, and I was puzzled when I came to South Africa,” says Severin Daniels, Interim Marketing Director of Monier SA, national division of the global roofing giant. Daniels arrived here from Germany in March with a mission simple and unambiguous: to convert the South African home owning market to the advantages of concrete tile roofing. “There are a million reasons for concrete. If you look at the life span of a concrete roof you are talking fifty years: look at the life span of a metal roof and depending on the quality, you are looking at five to twenty years. That alone is a strong positioning argument.

for example - and a comprehensive range of systems and products for pitched roofs and chimneys, Monier offers premium product quality as well as innovation. And its international activities are expanding still further. Monier Roofing specializes in the supply of a vast range of concrete roof tiles, roofing system components and a premium clay roof tile range.

Stylish and guaranteed The roof tile range spans six unique profiles supplied in four finishes to support the most ambitious designs. And among the roof tiles Monier offers a stylish Arkitone range with a mixture of colours to suit a variety of themes. Quality imported clay tiles are offered in three profiles with six colour ranges supported by a thirty year guarantee on frost resistance. At the forefront of roofing innovations, it recently introduced ‘EasyFash’ which had been developed specifically for roofing purposes, and provides top sealing, ease of use and easy sustainability. Monier Roofing SA dates back to 1949 when the company, then known as Vereeniging Tiles, installed the first double action line production tile machine. Now with eight strategically located branches - Bloemfontein, Brits, Cape Town, Durban North, Germiston, Port Elizabeth, Queensburgh, and Richards Bay - and four depots - Vereeniging, Camperdown, East London and George Monier is the largest provider in the South African concrete roofing market. It sells tiles and all non-tile components including underlying membranes, outlets and dry ridging system.

Sixty five%” of the market in South Africa is metal, and there’s no good reason for that

Concrete arguments “As regards installation, while many people think metal is easier, when it comes to the detail that’s not true. There are many misconceptions in this area. My number one target is to attack the metal market. 65% of the market in South Africa is metal, and there’s no good reason for that.” Operating in 40 countries and across four continents, the Monier Group is the world’s leading provider of building materials for pitched roofs, roofing components and chimney and ventilation systems. With a well-known brand portfolio Redland in Britain and Braas in Germany

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Monier Roofing FEATURE

Aesthetics “In terms of aesthetics,” says Severin Daniels, “people in South Africa actually feel that metal sheeting is nicer and has a more modern look. “Some think that tiles have an old fashioned look but there are flat tiles as well. You can have it all. “Obviously a concrete tile is limited to a certain pitch, and hands up, I am at the mercy of our few technical limitations.” Daniels has identified areas of potential. “The current market in South Africa is highly commoditised - a market where people can see no difference in the product. “During the boom many products came on the market and there was little concern about differentiation. But now the situation has changed. We are in a recession and there is over-capacity in the commodity market.

“But it’s called Double Roman not only by us but by all our competitors. People will go to a hardware store and simply ask for a ‘Double Roman.’ “So there’s enormous room for differentiation, an area where little or no marketing been done. We are as usual focussing on the continuous improvement of our quality, and highlighting our best features so that we can capitalize on what we see as an opportunity.” Monier Roofing SA’s aim is to extend and embody the national and international successes of its parent company, and are recognized as the most reliable manufacturer of concrete roof tiles in the South African roof cladding industry. High among the market growth drivers say Daniels, will be marketing and product differentiation. “Monier’s philosophy has been very much production driven, moving towards sales-driven. Now it is on the verge

If you look at the life span of a concrete roof you are talking fifty years

Monier differentiation “One of the big challenges for us is that we have to de-commoditise this business by differentiating ourselves, and this an area in which I have started to address.” Currently Monier SA is selling one profile tile, accounting for 75% of the market - the ‘Double Roman’, an interlocking concrete tile and one of the most economical.

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of entering a marketing-driven business. Marketing is an investment that has to be tackled headon.”

More power to your roof Monier’s fast advance into additional functions of energy generation and maintenance - spearheaded by a new corporate slogan – ‘More Power to Your Roof’ - has particular relevance for South Africa where energy is at a premium. Severin Daniels is excited by the possibilities for the South African domestic market, such as energy generation and sun-reflecting under-tile membranes. “Overall, South Africa has a special place in the Group because the potential is so high. The ground here is very fertile.” END

Tallie Marine... A NAME WRITTEN AND RIDING ACROSS

South Africas waters For generations the name of Tallie has been synonimous with South African commercial boatbuilding. The exceptional quality and customer service provided by this West Cape boat yard are bywords among customers from governments to fishermen. Colin Chinery talks to Managing Director Anton Tallie about his craft and his values.

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Tallie Marine FEATURE

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Tallie Marine FEATURE

t Helena Bay is the one place on the West Coast where you can watch the sun rise over the sea. In the changing morning light distant dolphins enchant their shoreline spectators. 150 kilometers north of Cape Town, the largest bay in Africa is also home to South Africa’s fishing industry. Tinned fish products such as pilchards in tomato puree, hake and fish-meal are processed at factory concentrations in communities like Stompneus Bay, West Point and Sandy Point. Together they provide more that half the country’s R2 billion annual fish production. And at Sandy Point Harbour is the only commercial boat builder in the country – Tallie Marine, a name much respected in boat building and fishing, and synonymous with this part of the world. Managing Director Anton Tallie recalls a visit two years ago from a party of Norwegians. “One of them was a fisherman, another an architect and the third an attorney. They were looking to buy glass fibre vessels and had been all round Europe and as far as China. When they came to our yard they told me they would look no further. My boats, they said, were the best they had seen.”

Custom built Tallie Marine will customise any boat according to instruction; quality, value and customer service as assured as the local weather is capricious. In the last 15 years 130 vessels have been conceived and finished at its harbour side yard; landing craft, catamarans, but above all fishing boats, from 33ft prawn trawlers to 83 ft stern trawlers. Vessels have been supplied for Mozambique, Namibia and to the Government of Angola as well as the South African market. 90

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Family business This is a family business, the fourth generation of Tallies’ since forebears settled here from Malta, and from modest beginnings began building wooden boats for the local market. As well as Anton, there is son Antonie, Director/Mechanical Engineer, brother Hein, Director/Shipwright, Anton’s wife Rinette, Financial Director, and Donna Tallie Marketing manager, daughter-in-law, married to Antonie. Tallie Marine began in 1988 as a maintenance and repair shop, working on

wooden, steel and GRP (glass reinforced plastic) vessels. But with limited life span and high maintenance costs, Anton saw that wooden vessels would become almost extinct, and so in 1995 he designed and built his first GRP. GRP doesn’t corrode, is fairly low maintenance and relatively light weight. Well built and maintained GRP boats are standing the test of time, and for the past 15 years Tallie has been a One Stop boat building and maintenance yard with a reputation for exceptional quality, affordability and customer focus. “I grew up with wooden boat building,” says the 60 year old MD. “My grandfather, father, and his brothers were all shipwrights, and in their time they built a lot of wooden boats. But scarcity of the right wood for the right application, the price and the limited lifespan of wooden vessels moved us away from this form of construction. That’s why we moved to GRP.”

The One Stop Yard Tallie Marine does everything under one roof from moulding and filling the boat structure and applying the wood and steel work, to fitting accommodation, wheelhouses, winches and aft storage platforms.

We believe in service, service to our people and service to our customers This says Anton Tallie, is what makes this company so versatile. Design is geared towards low resistance, so maintaining excellent speed with low HP engines and saving on fuel and running costs. Wood and steel are used in limited areas; hardwood for accommodation, bulwark

Triton Naval Architects

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capping and in some window designs, and all steel is either 316 stainless steel or galvanized mild steel. The vessel bottom is painted with antifouling, but with the rest of the colouring all in the gelcoat and fibreglass, no further painting is required.

Harvest of the sea Tallie Marine vessels are built for diverse fishing applications including bottom trawling, purse seining, long lining, mining, squid fishing and research. A seine is a net laid out in a circle around a school of fish and drawn into a purse that closes the bottom, trapping the catch inside. Seiners are used for pilchards, anchovy and horse mackerel, with crews ranging from two or three to more than a dozen deckhands. Longliners commonly target swordfish, tuna, halibut, sablefish, using a long line with baited hooks attached at intervals. Designed with large hold capacities, Tallie Marine vessels nonetheless maintain www.southafricamag.com 91

Tallie Marine FEATURE

spacious engine room and accommodation areas. Many are built to include more than one application enabling products to be processed at sea. The moulds are so versatile that a range of sizes, from 33 feet to 100 feet, are able to be built. “Around Cape Point we fish in some of the roughest weather anywhere in the world. It’s very hard work, and it’s hard on the equipment. And unlike in Europe, people here tend not to look after their vessels that well. Private owners are an exception, but some skippers are very hard on their vessels. It’s all a bit different. So the vessels have to be strong in all kinds of weather and maintenance free.”

Values and ethos As a well established and respected family, the Tallies’ have succeeded in transmitting their high standards and work ethos into a company that is reliable, viable and – through employment opportunities - a source of upliftment for the local community and the lives of its employees. 92

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“The name Tallie has been synonimous with boat building in South Africa for many years. And for me the most important thing in my life is our name; it’s very very dear to me.

Belief in service “We believe in service, service to our people and service to our customers. The atmosphere in our yard and workshops is fantastic. We don’t have strikes, we don’t have problems. And that’s very important.” If Tallie Marine is the only commercial boat builder in South Africa, anything approaching monopoly power holds no temptations. “For the past two years we have absorbed all cost increases and kept our prices. If you raise your prices people can’t buy and I would have to have lay-offs in my yard. So I keep the prices down. I would love to take orders from abroad and our prices are very good, but transport to Europe is very expensive. “My core people have been with the company since before 1995 and I have some here who started with my late father. So I

Tallie Marine Boatyard We build them tough for the rough seas! must keep busy and keep the guys employed. And we try to help the local people, and this also helps us to stay in business.”

before

Skills and loyalty Tallie Marine employs around 80 and trains and up-skills new recruits who have aptitude and potential. Here stability is a feature as it is with the supply chain. “We tend to stay with our suppliers and don’t jump from one to another. We don’t do that sort of thing. For me that’s unethical.” Building fine boats is one expression of a talent and personality, but for Anton Tallie is boating also a relaxation and recreation?

Whenever I see my boats I’m proud

For all your boatbuilding requirements as well as maintenance, repairs and refurbishments that will add years to your vessel!

after

“You know if you are a mechanic you need to have a race car. But that’s not always the case. I have 5.5 metre rubber duck which I use to catch fish with. I enjoy that, but for recreation I fly in the Western Cape area, with a gyrocopter and I also fly with fixed wing. And yes I have built my own.”

Adrenalin Does the sight of a Tallie boat out on the waters still turn the heart? “You know it’s funny to think, but you do get used to it. Up to a point we build on a production line so many of the boats are the same, you don’t have that adrenalin like with the first vessel of a kind. But if we do a new kind of vessel, a new development, well then something of that old feeling returns. Now I’m busy training my grandson. He’s four and I had him out in a boat yesterday.” “But whenever I see my boats I’m proud. Many times I wish my father was still here to see what we have done. He would have been proud too.” END

PO Box 84, Sandy Point Harbour St Helena Bay, 7390 SOUTH AFRICA Tel: +27 (0)22 736 1283 Fax: +27 (0)22 736 1383 Email: info@talliemarine.com

www.talliemarine.com

TRANSNET RAIL E N G I N E E R I N G :

ON T R ACK 2 0 :10

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Transet FEATURE

A solid history of quality service and innovation… Erica Wark speaks with Toba Tobogga, General Manager at Transnet Rail Engineering

hile TRE may not be boasting about their activities, they are certainly not modest in their commitments. The 2010 World Cup heralds a period of exponential growth of numbers using public transport in South Africa. You may be aware of free train services to those who have bought World Cup tickets, which have been laid on to support the logistics of the World Cup. However, did you realise that it is Passenger Rail Agency of South Africa (PRASA), TRE’s industry partner who is behind the provision of the free services? TRE’s endeavours behind the scenes have made all of this possible. Their reason for doing this? TRE have made a commitment to provide reliable and quality service, and this is a promise they aim to uphold whether service ‘as usual’ or whether service under the strain of an extraordinary influx of passengers, such as around this spectacle. TRE is one of the largest rolling stock organizations in the railway industry, specializing in maintenance, repair, upgrade, conversion and manufacture. Operating as a division of Transnet Limited, TRE has eight product focused businesses dedicated to the various segments of the railway rolling stock sector, namely: Locomotives, Coaches, Wagons, Rolling Stock Equipment, Rotating Machinery, Wheels, Auxiliary and Foundry. These businesses are situated in 132 depots, six factories and TRE has approximately 13 000 employees throughout South Africa. While focus is mainly on the South Africa market, investment in research and development to service the specific requirements of Africa and the rest of the world has led to an ever expanding range of rolling stock products. The proximity of the coastal plants to major ports facilitates the movement of products to and from overseas markets. www.southafricamag.com 95

Transet FEATURE

Programmes such as Lean Six Sigma, complemented by agreements with the original equipment manufacturers (OEM) for skills and know-how transfer have placed TRE firmly on the map as a world class manufacturing organization. The Southern African rail freight industry is dominated by heavy haul operations in support of regional mining activity, especially iron ore and coal. TRE’s most notable contribution to the industry is the HS self steering freight bogie, an innovative design, acclaimed world wide as a feat of modern railway engineering. The track gauge in Southern Africa is narrow by comparison with the North America and Europe (1067 mm as opposed to 1435mm). This created many difficulties for railway engineers in our region with the dynamic stability of vehicles. Undaunted by the challenges, TRE developed and over the years refined HS bogie to the point where it is the exclusive choice for all heavy and medium haul operations in Southern Africa. A mark of this success is seen in the statistic that more than two thirds of the entire region’s freight now travels on these bogies because of their superior ride quality, rolling resistance efficiency and track friendliness. Their ton per axle capacity now rivals and sometimes exceeds those of broader gauge bogies, an achievement which has led to South Africa’s annual rail cargoes of 100 million tons of iron, coal and manganese. 96

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With this legacy I was itching to know what is in pipeline now? Transnet Rail Engineering achieved a milestone recently when Transnet signed a contract to acquire 100 brand new diesel-electric locomotives. A substantial portion of the manufacturing including assembly, testing and commissioning will be performed by TRE. The contract was signed with GE South Africa Transportation (GESAT). The first 10 locomotives will be assembled by GE at its plant in Erie, Pennyslvania with the balance assembled by TRE in South Africa. Apart from assembly TRE will be fabricating brand new sub assemblies for the 90 locomotives. In turn GESAT will supply all the major components such as the engines, alternators, blowers and all other major hardware. TRE will do the complete assembly. The value of the subcontract is R355 million, while the total value of the whole contract is R2.32 billion. Most of these locos are earmarked for use on the general freight lines, although they could also have application on South Africa’s heavy haul lines. Looking beyond this one project, Thoba advised that the TRE is actually investing R392 million in the current financial year to expand the business through growth initiatives and maintain current business by replacement of equipment and facilities for higher efficiency, service quality and a safer working environment.

• Swasap has been established and manufacturing axles for Transnet Rail Engineering for over 60 years • Axles are exported to customers worldwide including major markets in Europe and North America • We are BEE compliant • We maintain an ISO 9001 QUALITY MANAGEMENT SYSTEM and hold manufacturing accreditation to AAR M101, GMRT2470 and other world standards • GFM forge, fully equipped factory and world class laboratory and metrology facilities

Some more areas that will receive investment, solely within Transnet’s dedicated Rail Engineering sector, are: Diesel Centre of Excellence Equipment A Prep Newcastle/Wentworth/City Deep Lifting Shop Polokwane Coal line 81mt expansion Beyond the connections internally, TRE’s most important business imperative is in contributing to the success of Transnet’s strategy by supporting its sister company Transnet Freight Rail’s volume growth, especially on target commodity flows by further increasing availability and reliability of the locomotive and wagon fleets. Externally, sales to various railway markets are being developed for diesel locomotives, specific commodity freight wagons and rolling stock equipment such as wheel sets, traction motors, engines, parts and components. To keep up to speed with developments at Transnet Rail Engineering and the Transnet group please visit www.transnet.co.za END

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Engen Lubricants. Keeping your operations on track.

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Send your product enquiries NOW to: CONTACT: Welcome Ngeju (welcome@swasap.com) Sales Director ADDRESS: 4 Rinkhals Street, Industries East, Germiston: 1400

We believe in breakthrough thinking when it comes to fuels, lubrication and service. Thinking that enables us to source and research products that have been developed, tested and produced specifically for our unique South African conditions. As a local producer of quality guaranteed fuels and lubricants, and the sole supplier of Mobil lubricants, Engen is proud to be a hands-on supplier to the Transnet operations. If you would like to know more about our products and services please call the Engen Customer Service Centre on 08600 36436 or visit www.engen.co.za

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WORLD CLASS DRINKING WAT E R ?

COME TO JOBURG! Global demand for water is greater than ever and rising. Driving demand are population growth and mobility, rising living standards and changes in food consumption. “With increasing shortages, good governance is more than ever essential for water management,” says a UN official. “Combating poverty also depends on our ability to invest in this resource.” With a world class product, Johannesburg Water is ahead of the game, Lusanda Jiya tells Colin Chinery. 98

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Johannesburg Water FEATURE

uestions from World Cup visitors arriving at O.R. Tambo International Airport: will I get tickets, which nation will lift sport’s most coveted trophy, what’s the weather like, and… is Johannesburg’s drinking water safe? With daytime highs in the 60s and night time lows near 40, the reception might be a little too warm, but relax; Joburg’s water is as fresh and as safe as back home. Perhaps more so says Johannesburg Water’s Managing Director Gerald Dumas, reflecting that in parts of Europe it is common to see signs indicating when it is not safe to drink the tap water. “Sometimes we are even scared to brush our teeth and we go out (in Europe]) and buy a bottle of water. So, our water is safe.” Johannesburg Water’s network supplies some 3.8 million people from Orange Farm to Midrand, and Roodepoort to Alexandra.

Recently it won the “Blue Drop” award, with its regulator, the Department of Water Affairs saying the city has the cleanest water nationally and among the best in the world. Speaking at a briefing on the R3.1 billion programme of improvements and replacements within the city’s 10 000km water-mains network, utility’s laboratory support manager, Russel <co correct> Rimmer, said each month some 500 samples are taken and analysed to ensure compliance with the SANS 241 standard - more than the legally required number.

Joburg gets top award Johannesburg Water (JW) was formed in January 2001 as an independent company with the city of Johannesburg as sole shareholder. This is an operational model known as corporatisation, promising efficiency gains comparable to those of privatization while permitting greater www.southafricamag.com 99

state involvement that can mitigate negative social risks inherent in privatisation. Shareholder responsibilities are delegated to an appointed board of directors, with an executive committee (EXCO) overseeing service delivery standards. With annual turnover topping R4 billion, services are provided along business principles with the aim of ensuring customer satisfaction and cost recovery. Residents throughout the city says JW, can look forward to improving levels of service and additional water connections in areas where they do not exist. “When JW came together it was an amalgamation of water departments of the smaller municipalities now incorporated in the city of Johannesburg. Initially it made of loss of just over R200m a year, but within three years this had been turned around to a profit of over R300m,” says Lusanda Jiya, Executive Manager Communication & Stakeholder Relations at JW.

Losses into gains “This was largely the result of programmes put in place, including the upgrade and rehabilitation of infrastructure across the city. Areas which had the highest water losses and frequency of repeat bursts were targeted, and the halting of these water losses was translated into the gains seen in the financial turn around.” Sanitation is the other arm of Johannesburg Water, JW owning and directly managing six wastewater treatment works treating all the domestic sewage and industrial effluents discharged into its sewers. These works, which treat 930-million litres of sewerage daily, must comply with standards laid down by the national Department of Water Affairs and Forestry (DWAF). There are approximately 90 industries in the city discharging large quantities of problematic effluents to Johannesburg Water’s sewers. All industrial effluents from

We … can plan for the maintenance of infrastructure with a capital programme to address aging infrastructure

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Johannesburg Water FEATURE

these factories is monitored to ensure that it does not contain dangerous or toxic chemicals. “The current programme targets a number of suburbs across the city with an on-going upgrading of waste water treatment works capacity. We feel comfortable that we are now a financially viable company that can plan for the maintenance of infrastructure with a capital programme to address aging infrastructure,” says Lusanda Jiya.

Ageing infrastructure For JW as with almost any water utility anywhere in the world, addressing the ageing infrastructure problem is the biggest single challenge. Many of the disruptions currently experienced are due to connecting new pipelines laid parallel to the old. JW is also replacing old asbestos cement pipelines prone to leaks and accounting for at least 10% of water losses. “You can only maintain to a point, and then it must be replaced if it is going to cope for the next 80 to 100 years. It’s an on-going

problem and there will never be a time when we can say we have fixed the entire infrastructure and we’ll never have problems again. “In 2007 we did a desk top study looking at the state of the infrastructure, and on that basis planned the capital programme to ensure we had a financing model in place which each year incrementally addressed the ageing infrastructure issue.” At this stage population growth is not a big problem, says Jiya. “New formal settlements have water and sanitation provision planned in but informal settlements and townships inevitably are less predictable.” (By the late 1990s, 24 per cent of the city’s African residents lived in informal dwellings, 15 per cent were without flush toilets and 13 per cent were without tapped water). “There are rows of informal settlements literally mushrooming at different points across the city.” But ahead of them becoming formalised, JW together with the City’s housing department, provides a basis access called a Level of Service 1, providing communal fresh water taps as well as toilet and sanitation facilities.

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Johannesburg Water FEATURE

Facing the skills issue While an ageing network is JW’s greatest challenge, skill shortage is a close runner. And in line with the City of Johannesburg skills development programme, it has developed an in-house strategy to address staff skills and competency needs, an approach driven by the programme priorities rather than the compliance requirements of the Skills Development Act. “Shortage of skills is an issue for most sectors of the South African economy, especially specialised and technical skills, and we have met this challenge head on,” says Lusanda Jiya. “There is a long-standing scholarship programme targeting specific areas, in particular engineering. We sponsor scholars to enter university and offer them work experience in their holidays. When they graduate we are able to offer them work.” There is also an internship programme and mentorship by experienced engineers. “It’s about entry into the profession which we facilitate in the internship programme, but also training and up-skilling those already in the job.” Johannesburg Water says Jiya, prides itself on being able to ensure that everyone will have access to water of the best quality in the country.

World class service “We do our best to provide a consistent service, reducing as much as possible all interruptions and interactions to that service. All consumers have access to our call centre where they are able to report all queries or issues with us. “In terms of our infrastructure, the management systems and the technical and professional expertise we have in house enables us to offer to our consumers a quality service, something we take great pride in. Financially we should be unassailable, and maintain for years ahead the level of world class service that we have achieved.” END 102 www.southafricamag.com

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C US T O M E R FO C US G I V ES I W C A

TOWERING PRESENCE Water cooling specialists IWC have won top end market share and business retention with quality bespoke solutions and a comprehensive customer service. â&#x20AC;&#x153;We are selling the technology and the know-how to solve problems and improve efficiencies,â&#x20AC;? says IWC Director Roger Rusch.

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IWC FEATURE

t’s not the biggest operator in the South African industrial water cooling sector, but IWC and its famously strong focus on quality and customer-specific solutions has won it the business and allegiance of industry giants. Businesses like Eskom, Africa’s largest producer of electricity, and Sasol, the mining, chemicals, and synfuels corporation. Among the reasons for top end market share and business retention; quality bespoke solutions and a comprehensive customer service.

Tailor-made solutions “We try not to fit everybody into the same box. Instead we look for tailor-made solutions for our customers, which most of our competitors don’t,” says IWC Director Roger Rusch “The big guys tend to give a fairly stock standard offering, whereas we set out to understand their requirements and give them a product or solution that will meet their needs.” Midrand-based IWC (Pty) Ltd, founded in 1986 as Industrial Water Cooling, specializes in evaporative water cooling for a wide range of applications. Industries covered include power generation, mining, petrochemical, sugar, steel, food & beverages, air-conditioning and refrigeration. IWC’s product range includes: Package Cooling Towers under the Searle Bush brand. Large Field erected Mechanical Draught cooling towers of all types and materials of construction. Refurbishment of the latter, as well as Natural Draught cooling towers.

Repeat business a IWC factor “We are also almost certainly the only South African company that does the whole range of cooling towers from the smallest fibreglass package unit suitable for anybody from dry cleaners, injection moulders, canneries - all the way up to the refurbishment of large

natural draft towers for clients such as Eskom and Sasol,” says Roger Rusch. ”We have a huge amount of repeat business from both these corporations, and of all the towers Eskom have re-furbished over the last 10-15 years I would guess we have done about 80% of that work.” Focus is based on high quality (ISO 9001-2000 accredited company), excellent service standards and a competitive price structure.

Excellent customer base “The multi-national guys have far bigger overheads and for us it’s fairly easy to be more competitive and gain market share,” says Roger Rusch, 40, an engineer who started out as a South African Air Force Technician. The recession left IWC relatively unscathed. “We had some quiet months, but with our very good customer base we succeeded in getting a good deal of work during that time. And at the moment that period seems to be behind us. In fact we have managed to secure a very healthy order book that should carry us for the next two to three years.”

We extend to our suppliers the same gratitude that we show our customers IWC Training IWC staff is expertly trained, with both inhouse and external training ensuring a strong well-established team and that a smooth operation is put into place. “We have a fairly stable employment base and we spend a lot of time and effort training, focussing on increasing skills and issues like health and safety. The South African labour market has its challenges. It’s fairly difficult to get skilled labour and the prevailing economic climate at any one time plays a part in this.” www.southafricamag.com 105

IWC FEATURE

Supply Chain loyalty Staffing stability finds a parallel with IWC’s relationship with its supply chain. “We extend to our suppliers the same gratitude that we show our customers,” says Roger Rusch. “And while we make a note of others, we have been loyal to our main suppliers for many years, reciprocating their own loyalty to us.” IWC’s technical staff makes extensive use of advanced computer software and communication methods. This enables the company to meet customers’ specific requirements, a core feature of its operation and success. Thermodynamic design is undertaken through purpose-developed inhouse software, whose heat transfer characteristics have been determined experimentally and further refined from data collected in the field.

All-inclusive service The experience gained in the installation of cooling towers and associated plant, as well as the extensive development work undertaken over the years has resulted in IWC’s allinclusive range of services from feasibility studies to the installation of complete plant on a turnkey basis.

Refurbishment and Upgrading IWC has been active in the refurbishment of cooling towers and bulk air coolers of all makes, types and sizes over the past two decades. This includes the installation of fill material, drift eliminators, spray systems and nozzles as well as fan mechanicals. As an alternative to a new purchase, old cooling towers can often be satisfactorily refurbished. In many old towers wood fill and drift eliminators have been replaced with more modern plastics and stainless steel. Many times the type of fill originally installed is found to be is ill-suited to the water conditions, and the existing fill has been 106 www.southafricamag.com

replaced with more suitable non-clogging fill materials such as polypropylene or stainless steel splash-pack. In many cases it has been possible to upgrade the performance of an existing tower by judicious re-design of the internal components and fan system.

Africa leader IWC is the African leader in the refurbishment of Natural draught cooling towers, and over the past 18 years has undertaken the great majority of these projects in the region. The company has also developed online methods, so reducing down time and

Pultrusion Engineering Solutions (Pty) Ltd t/a Firbetek

Manufacturers of

GRP Fibreglass Profiles and Products • Anti-corrosion • Light weight • Low on maintenance • Low electrical conductive • High strength GRP Products include Handrails, Stair Treads, Floor Grating, Cat Ladders, Walkway Structures, Cable Support Systems, Structural GRP Profiles and any customized structures.

Bridge Road, Busaf Park, Unit 3, Stikland, Bellville 7530, SOUTH AFRICA Telephone number: +27-21-948 0851 Fax number: +27-21-948 7942 info@fibretek.co.za www.fibretek.co.za

production cuts normally associated with this type of project.

Turnkey Solutions As part of its comprehensive service IWC also offers complete turnkey solutions covering the full design supply, installation and commissioning of the following: All types of cooling towers and bulk air coolers. Pumps, piping and all associated equipment. Electrical, instrumentation and control systems. Filtration, screening and dosing equipment. Heat exchangers (Plate, Shell & Tube, etc) All necessary civil and structural design and construction.

Testing and Evaluation Performance and acceptance testing of cooling towers is undertaken in accordance with recognised international standards (CTI). “Using our own measurements and

data logging equipment we can also assist you with the evaluation of your existing cooling towers and water cooling system,” says Roger Rusch.

Replacement Parts for all Types of Cooling Towers IWC can offer a wide range of spare or replacement parts for many makes of cooling towers, some of the replacement components which can be provided are: Mechanical items such as fans, drive shafts, gearboxes and motors Drift eliminators in PVC, Stainless Steel, ABS, etc Fill materials of all types

Expertise and Flexibility “We are selling the technology and the know-how to solve problems and improve efficiencies. We have the flexibility and set out to understand problems before offering a solution.” END www.southafricamag.com 107

the red rooster’s on song! South Africa’s national team enter the World Cup to the strains of ‘Shapa Bafana Shapa’ the official song released by Gallo, the ‘Red Rooster’ label that has come to symbolise the nation’s popular music

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Gallo Music FEATURE

Cream of the top In addition, the album’s second CD includes the best of South African music, with evergreen hits by the likes of Lucky Dube, Stimela, Mango Groove, Ladysmith Black Mambazo, Miriam Makeba, Hugh Masekela, Vicky Sampson, Thandiswa Mazwai, West Nkosi and Dr Victor. Says Greenberg of the choice of DJ Cleo’s track as the official song for Bafana Bafana: “Without detracting from the other artists at all, it was the cream of the crop. It just seemed to fit as the (team’s) theme song – when we heard it, it was a no-brainer.”

I know what the crowd wants to hear

mall wonder Gallo Music’s iconic Red Rooster is calling from the topmost perch. Bafana Bafana are going into the FIFA 2010 World Cup South Africa with their own official song: ‘Shapa Bafana Shapa’, by multi award-winning artist DJ Cleo, and released by Gallo - the country’s largest and oldest independent record label. The rousing kwaito/house song is the title track of the official Bafana Bafana double album. And Gallo Records has pitched a “full-on” official licensed album for the national soccer side to various artists, says the label’s Local Division General Manager, Neil Greenberg. The resulting album features a CD of new tracks, including artists such as DJ Cleo, Chomee, Jozi, Skwatta Kamp, Speedy and Stoan, Eddy Grant, Kurt Darren, Cantona featuring Dr Victor, Jamali, Don Clarke and Leon Schuster, and Don Clarke and the Crutch Mullets.

For DJ Cleo, it has been an honour merely to be asked to pitch for the album – and it is doubly so for his track to be chosen as the official Bafana Bafana song: “I’m humbled, and in the same breath, honoured.” But he concedes he has the advantage of being a lifelong soccer fan, and deejaying and performing at football matches for years.

On the receiving end “I know what the crowd wants to hear. The DJ box is often only a few metres from the crowd, and I can hear what people are shouting. I’ve been on the receiving end a lot and the giving end a lot.” Shapa Bafana Shapa, a combination of kwaito vocals over house music, is just the ticket, says DJ Cleo – and he is confident that it will find favour with South African football fans. “We’re going to ride this mother until the wheels drop off!” The red cockerel has long come to represent what is widely regarded as The record company in South Africa, consistently excelling in delivering on time what the customer wants. www.southafricamag.com 109

Gallo Music FEATURE

Soaring wings Prospering under its soaring wings, the legacy of the late Miriam Makeba, Ladysmith Black Mambazo and an entire ‘Whose Who’ of South African music. Ella Fitzgerald and Bing Crosby are among earlier Greats associated with the country’s oldest and largest independent record label. A remarkable percentage of South Africa’s best-known and loved artists have also enjoyed a connection with the company at some stage of their careers. Take even a brief look through most personal music collections in South Africa and you are almost certain to uncover the company’s famous ‘red cockerel’ trademarks prominently displayed on covers and sleeves.

When we heard it, it was a no-brainer Gallo Music is part of the Avusa Media Company and made up of the following sectors: Gallo Music Group / Gallo Record Company / Gallo Music Publishing Warner Music Gallo Africa RPM Record Company Formed in 1926, they are the largest and oldest independent record label in South Africa. They own approx. 75% of all recordings ever made in SA, including major international artists such as Ladysmith Black Mambazo (2009 Grammy Winner - and Bhekumuzi Luthuli. Gallo are also the sole distributors of Warner Music in SA (Madonna, Greenday, Nirvana etc) in both physical and digital form - primarily mobile orientated. RPM are the largest dance music company in SA. The Gallo Music Group brand appeals to all age groups and across all social sectors 110 www.southafricamag.com

Mediaguide Mediaguide, the leading broadcast monitoring company in Africa, is proud to have been associated with Gallo Music for over 12 years. New delivery platforms have changed the way the industry approaches their business, as streaming and downloading now co-exist with radio as a means for fans to discover and experience music. It has become essential for industry players to have timely and valid information about what is being played over the airwaves.

with a product range that includes CDs, DVDs, music videos and audiocassettes. As a result of its licensing agreements with prominent foreign music labels, together with an aggressive policy of recording the best local artists, Gallo brings to listeners the music they want across many different genres, from soft ballads to kwaito - a South Africanized style of hip hop - pop rock to African fusion.

Gallo sets the trends In fact there is scarcely a single music style that has not featured in the Gallo catalogues. And many times it was Gallo recordings that set them in place. The story goes back to 1926 when a young entrepreneur, Eric Gallo set up a one man business, Brunswick Gramophone House, in a small shop in downtown Johannesburg. Born in South Africa of Italian parentage, he spent 54 years at the helm of the organisation he founded, in the process becoming one of the country’s most famous businessmen. He retired in 1980 but retained the title of ‘Life Chairman’ until his death in 1998.

Gallo milestones: Gallo built Africa’s first recording studio in 1933. Gallo was the first record company to produce an African hit record. A former Gallo discovery – Miriam Makeba – won the first Grammy Award given to any

Mediaguide

artist from the African continent. Another Gallo group, Ladysmith Black Mambazo were the first and only South Africans to ever win two Grammy’s. Gallo owns the largest archive of South African music, estimated to comprise some 75% of all recordings made in the country. For eight decades Gallo has been both creator and custodian of a huge part of South Africa’s musical heritage. There is great optimism that Gallo’s role in discovering, nurturing and popularising South Africa’s vast musical resources and talents will continue well into the future.

Cream of the top In terms of African music, Gallo has so much material in its 90 years of archives that he can’t accurately estimate how many songs it controls; over a million songs certainly. Maybe two million.

Local music in demand Systematic cataloguing is essential for two reasons. With the rise of black consumerism, local music is in greater demand than ever in the South African media market. And secondly licensing homegrown songs in Rands is far more cost-effective than renting the rights to use international hits in dollars or euros. It also makes licensing South African music overseas more lucrative. In 1996 Gallo became part of a new Black empowerment vehicle called Johnnic – later becoming Avusa - and today the company, officially known as the Gallo Music Group, remains a valued component of South Africa’s most prominent media and entertainment conglomerates. END

Mediaguide

PROUDLY PART OF Media

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TH M EC A ONNEK

Inmins FEATURE

old Fields’ South Deep mine, located in Gauteng Province, around 45 km southwest of Johannesburg, is one of the deepest mines in the world. When it was opened, in 1961, it had a projected life of 70 years – but there’s still a lot of life left in the old hole yet. The ore body has been remodelled for the next 30 years – a decade longer than the original estimate – and output is being increased, with the recommissioning of the South Shaft. The project, part of an R8.5 billion capital investment programme for the mine, is intended to increase productivity up to 800,000 oz of gold a year by 2014. Opportunities of this sort are welcome for companies like Inmins Trading (Pty) Ltd, which has placed a large order in its supply chain, but they don’t allow them to go to their heads. Inmins has been in business since 1969 – originally as Dan Perkins Holdings – and has succeeded by knowing its market and doing its job well.

Our business is about consumables – pipes, valves, hoses and so on “We get big orders from time to time, for big projects, but we know they’re not sustainable long-term. Inmins Trading is, as its name indicates, largely a trading company,” said Wietsche Fourie, who joined the company in 1989 as financial manager and is now CEO. “Our operation adds value to pipe – we buy it, buy flanges, weld them together, make expansion joints, and so on. We also supply hoses.” Its customer base extends across mining and general industry, from small enterprises to giants like Sasol. It also provides business-specific supplies in the industrial chain, such as to the fruit packing industry in the Cape. www.southafricamag.com 113

“Most of our turnover comes from supplying to mines but margins are low in that area,” said Fourie. It is also subject to a pretty wide-ranging economic cycle. “Mining ups and downs are, principally, on capital expenditure. As long as the mines are digging rock out, we are supplying. Our business is about consumables – pipes, valves, hoses and so on.” Inmins is headquartered in Germiston, Gauteng province, which is well-placed to service the mining activities north of the Vaal. But its geographical markets extend across the country. It has also supplied Zambia’s copper industry and into Zimbabwe, but as specials and one-offs, rather than consistently. It has a network of support and distribution offices across the country. “We have one manufacturing, fabrication and processing plant, in Chamdor, Krugersdorp, and 18 other locations around the country,” he said. “We’re in Cape Town, Rustenburg, Pretoria, Welkom, Klerksdorp – we have the whole country covered.” As suppliers and traders, Inmins is constantly striving to achieve the best deals – and, from time to time, to compete with suppliers who decide to go direct to the customer.

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“Our strength is our ability to handle volume,” Fourie explained. The ongoing challenge is to find new products to replace those that it may have lost distribution rights for, have become obsolete, or been superseded by better designs or quality. “We are between the mines and suppliers and we rely on volume and inventory turn.” Achieving inventory turn, stock control and efficient supply chain management is easy to say but not that simple to achieve. Inmins has invested in systems and people in order to ensure that it operates effectively and profitably. “In order to balance your inventory, you need a very good information system,” he continued. “You need to know when to order and to order in time. You need to be close to your suppliers, to understand their lead time, and to be close to our customers. Consumables are normally pretty reliable, in terms of forecasting demand, but every so often there is a big expansion.” Inmins focus on effective operations has been in getting its information system right. “We run a decentralised system,” Fourie explained. “Our guys on the ground get close to their customers, to know their business and

Inmins FEATURE

understand their needs. If we do find something stops moving in one part of the country, we can move it elsewhere, quickly. The power of our business is our network of operations, in all areas. Over time, we have opened new branches to support new mines, or acquired offices in areas where we want to establish a presence.” Inventory control is run on a Universe database, with software from Interdyne. “We have found that the software is relatively easy to customise for the functions we require,” he said. “We stayed away from the large companies – we found that they were trying to get us to change the way we run our business, because that was the way their software works! We have stuck with Interdyne for 10 years or so and we’re happy with them.” Fourie believes that the system and management structure, including experienced people empowered to take decisions on the basis of their knowledge and local information,

has enabled the company to run and maintain a tight ship – and to remain profitable, even in difficult times. Mining is cyclical but it looks as if it may be in an upward phase, after the setbacks of the financial crisis over the past two years. Inmins is servicing the platinum mines northwest of Pretoria; there are new developments in the Steelport area and new mines in the east. Gold mines in Gauteng and the Free State area, coal mines east of Johannesburg and in the Highveldt, Iron and ores in the North Cape all need consumables. Inmins Trading is part of Winhold Group, which will reach its 65th anniversary in September 2010. It had revenues of just under R1 billion in 2009. Inmins itself was delisted from the Johannesburg Stock Exchange in May 2005 but it issued 25.1% of its share capital to BEE parties, including an employee group and outside partners. END

d aptors, Steppe gs, Flange Ad isphere of Pipe Couplin m er He ur rn ct he ufa ut an ints in the So The largest m g (Pty) Dismantling Jo th Inmins Tradin Couplings and COUPLED wi en e. be ur ve fut e ha ess in th is proud to em every succ and we wish th