PEOPLE CULTURE TRAVEL PROPERTY BUSINESS WINE SPORT ENTERTAINMENT
Barry Hilton
ISSUE 08 R40.00
Everyone’s favourite cousin.
“I was so poor growing up. If I wasn’t a boy, I’d have had nothing to play with”
Sex sells
Inside Sexpo, Africa’s largest health, sexuality and lifestyle expo.
ABB South Africa
A global leader in power and automation technologies.
Eskom
Time to take the gloves off.
SA Football Association (Safa) The battle for South Africa’s football future is underway.
Step into Summer! Summer is almost here. To kick-start the fun, we’ve gone out and got you Barry Hilton. Say “the Cousin” and everybody knows exactly what you are talking about. He has reached international status as a stand-up and is considered to be one of South Africa’s greatest, a household name with his distinctive brand of humour. You can read his hilarious story on page 10. Of course, the big event of the year was the World Cup and we continue to look at the positive effects it is having on our nation. It was a tournament of many firsts. South Africa became the first African nation to host the tournament and, for the first time, Africa had six representatives - Algeria, Cameroon, Ghana, Ivory Coast, Nigeria, and (of course) South Africa. Things didn’t quite work out for Bafana Bafana on the pitch, but they left football’s greatest stage with their heads held high, missing out on a place in the last 16 on goal difference. The performance is being mooted as a building block for better things and this month we talk with SA Football Association (Safa) chief executive Leslie Sedibe about the future of South African football and how Safa is prioritising grass roots investment. We also have several other great articles for you including a look at Africa’s largest health, sexuality and lifestyle expo, Sexpo, an interview with Cas Coovadia, managing director of the Banking Association of South Africa, and we look at Eskom, specifically how the utility is preparing for the future and the role of nuclear power. As if that wasn’t enough, we talk with Riason Naidoo, the first black director of Art Collections at the Cape Town-based South African National Gallery and Old Town House (known collectively as Iziko). There is much, much more inside. Enjoy the magazine!
Editorial
Acting editor – Susan Miller 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 Erica Wark
Business
General manager - Stephen Warman Research manager – Don Campbell Researchers – Andy Williams Elle Watson Chris Bolderstone Dave Hodgson Advertising sales manager – Andy Ellis Sales executive – Jon Jaffrey Sales administrator – Abbey Nightingale
Accounts
Financial controller - Nick Crampton Accounts Margaret Roberts Alexandra Buchlakova
Production & Design
Magazine design – Optic Juice Production manager - Jon Cooke Production assistant - Justine Mackay
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NEWS
All the latest business news from South Africa
people Barry Hilton
Everyone’s favourite cousin: Barry Hilton.
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culture Is it an ism or is it art?
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travel The heart of the Alps
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Sport
We spoke to Raison Naidoo, director of the SA National Gallery, about the South African art scene.
Méribel in the French Alps offers 600km of runs and has 200 ski lifts to choose from – and that’s only the beginning.
Springboks
Springbok rugby is in a serious crisis with the World Cup in New Zealand kicking off just a year from now and they’ve been warned to expect a battle when they face the Barbarians in December
and Insid th, sexuality largest heal . expo lifestyle
FEATURES
REGULARS
Contents
Sex sells o, Africa’s e Sexp
Eskom
take Time to
es off. the glov
le ay. The batt underw future is football
lead . A global nologies ion tech automat
FOOTBALL 24 SA ASSOCIATION 34 GOLD CIRCLE RACING ASSOCIATION 40 BANKING SOUTH AFRICA 44 ESKOM 50 ABB SOUTH AFRICA 60 HOWDEN AFRICA 66 ZIMPLATS 70 BAFOTECH (PTY) LTD 74 THOS BEGBIE 80 FUCHS LUBRICANTS 84 J VAN DER SLUYS 88 CHRISTENSEN TOOLS 92 NAPM 96 SEXPO 102 RAP INTERNATIONAL PACK 106 ROYAL SOLUTIONS 118 CLUB TRAVEL GROUP WINGS TRAVEL 122 MANAGEMENT 128 ATNS 136 AFRICAN NEST LODGE
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All the latest business news from South Africa
South Africa to
weaken rand The Government has said that it would weaken the rand to boost economic growth and create a more competitive exchange rate. It is also reprioritising public spending in an effort to boost the economy and create five million jobs over the next 10 years. In a statement, the Government forecast unemployment will be reduced to 15 percent by 2020 through a focus on a expansion of transportation, energy, housing and other infrastructure, as well as agriculture, tourism, mining and manufacturing. A new “green economy” will also create jobs. “In the green economy for example, the new growth path projects a jobs potential of 300,000 additional direct jobs by 2020 to green the economy, with
80,000 in manufacturing and the rest in construction, operations and maintenance of new environmentally friendly infrastructure,” the statement said. It added that the cabinet has endorsed a set of macro- and microeconomic “interventions”, including more active monetary policy intervention to achieve growth and job targets through a more competitive exchange rate and lower cost of capital. President Zuma has put jobs at the centre of economic policy.
Transformer test bay will reduce
repair times, costs says Eskom A new R100 million test bay at Eskom’s (see page 42) transformer repair subsidiary Rotek Industries has been officially opened in a bid to reduce “the time and cost associated with 6
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transformer maintenance and repair”. The workshop - the only one in Africa capable of refurbishing, repairing and testing the largest transformers operational
within the Southern African electricity supply industry, under one roof - can test transformers from 10 MVA to 910 MVA and to Eskom’s highest power system normal voltage levels of 765 kV.
Absa
STATE
Majali
HUGE LAND
DROPS
takes aim at
Absa bank has applied for the final liquidation of Tshozi Investments, owned by controversial businessman Sandile Majali. Earlier this month Majali hit the headlines after being arrested for his alleged involvement in the “hijacking” of mining company Kalahari Resources. “Absa was in court, applying for the final liquidation of Tshozi Investments Pty Ltd,” Absa bank’s legal head Marthjnus van Rensburg said in a statement. “Tshozi stood surety for a loan that Absa made to Imvume Resources Pty Ltd. Imvume was voluntarily liquidated by its shareholder, Sandile Majali, and Absa is entitled to recover its loan from the surety company. The court reserved judgment.” The application was made in the High Court in Johannesburg. Imvume Resources was the company central to the so-called Oilgate scandal. Imvume obtained tenders from state-controlled PetroSA in 2004, but redirected the taxpayer’s money to the ruling African National Congress for its election campaign.
SUNDAY TIMES TO PRINT ZULU EDITION The Sunday Times, SA ‘s biggest weekend paper, has introduced a Zulu edition. Sunday Times editor Ray Hartley said that the 32-page Zulu edition would carry the best of the Sunday Times national news section, sport, opinion, business and lifestyle
copy, as well as KwaZuluNatal provincial politics, municipal news, celebrity news and sport. It retails for R8. The decision to produce a Zulu edition was motivated by great reader interest and research conducted by the Sunday Times.
CLAIM
The state has decided to drop a land claim against South Africa’s biggest sugarcane farmer. “I am extremely relieved,” farmer Charl Senekal, of KwaZulu-Natal, told the Afrikaans daily. He was facing South Africa’s biggest land claim against one landowner for his 20,000 hectares in the Pongola area. The Gumbi clan had put in a claim for all of Senekal’s land north of the Mkuze River between Mkuze and Pongola, while the Myeni clan wanted to claim the land south of the river. Senekal appointed two ethnologists to look into the claims that were lodged nine years ago. They investigated the claim and concluded that both clans never owned Senekal’s land, and that it had been owned by whites since 1880. www.southafricamag.com
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NEWSINBRIEF The Kagiso Purchasing Managers Index (PMI) remained below the neutral 50-point level in October, but the major subcomponents of the index posted gains for the month.
The City of Cape Town says it is probing a union claim that senior traffic officers are implicated in a scam involving cancellation of fines. The SA Municipal Workers’ Union (Samwu) had earlier given the city a dossier detailing allegations of a corrupt relationship between officers and companies such as car hire firms that ran fleets of vehicles. Artificial bottlenecks in the skills development pipeline need to be “removed and equity and access for all achieved”, Higher Education and Training Minister Blade Nzimande has said. Briefing the media on his delivery and performance agreements with President Jacob Zuma, Nzimande said skills development should be “prioritised to achieve high levels of growth and development”. Petrochemicals company Sasol Synfuels executed the largest shutdown of its kind in the world, when it decommissioned a portion of its Secunda operations on August 27, for a period of three weeks. The shutdown created 14,500 temporary jobs and injected more than R500 million into local industry. South African hydropower plant developer, owner and operator NuPlanet has been granted a licence to build a 5MW greenfield hydropower plant at the Mutirikwi dam, Zimbabwe.
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Eskom has announced plans to reduce its carbon footprint by investing in solar energy. The utility expects to become a dominant solar energy player and there is plenty of funding available to pay for renewable ventures. Eskom has vowed to invest in renewable energy and more efficient coal technologies to reduce its absolute carbon dioxide emissions from 2025.
Growth in traffic for the global airline industry is slowing, but growth rates remain above historical trends, the International Air Transport Association (Iata) has said. In its latest Financial Monitor for September to October, the association highlighted that the passenger traffic in September grew by 10.5 percent on that of September 2009. Copperbelt Energy Corporation has called on engineering, procurement and construction contractors to show their interest in building the 40MW Kabompo Gorge hydroelectric scheme, in Zambia. Copperbelt Energy Corporation plans to spend $120-million on developing the hydropower project by 2015. Mining giant Xstrata has finalised a R42 million contract with Lonrho’s agricultural business to develop and operate a commercial farming and agriprocessing development at its Thorncliff alloys mine in the Limpopo province. The first phase of the project valued at R14.4 million.
GOVT DENIES
PLANNING TO SHIFT ADSPEND The government has denied planning to shift its advertising spend to “patriotic” media outlets like the SABC and the New Age. Assertions to this effect were “ludicrous”, Government Communication and Information Systems (GCIS) said. “It is ludicrous to suggest ... that directing 90 percent of government’s adspend to the public broadcaster and The New Age will take care of government’s advertising needs,” GCIS head Themba Maseko explained.
“Anybody who knows anything about media planning and buying can actually see this allegation for what it is, mischief or, at the very worst, uninformed journalism.” Maseko said government’s communication strategy was informed by a “broad range of trends”.
Wells to RENTA L INDU S TRY step Down
as Transnet
acting CEO State-owned freight logistics group Transnet acting CEO Chris Wells has resigned and plans to step down at the end of March next year. “This, we believe, will give the board the time and flexibility to proceed with appointing a successor,” Transnet acting chairperson Geoff Everingham said in a statement. Wells, who was formerly CFO of the group, took up the position of acting CEO in March 2009, after Maria Ramos resigned to join banking group Absa.
DRIVES NEW
CAR SALES
Strong demand for rental cars helped drive new vehicle sales in October, according to statistics released by the National Association of Automobile Manufacturers of SA (Naamsa). Of the 24,699 new cars sold in October 2010, the car rental sector accounted for 25 percent at 6207 new cars. “One out of every four new cars sold during October 2010 therefore represented a purchase by the car rental industry,” Naamsa said. Overall, industry vehicle sales improved by 22 percent in October 2010 compared to the corresponding month the previous year. In October 2010, 44,056 units were sold compared to 36,052 in October 2009. “New vehicle sales had regained some momentum during the month boosted by exceptionally strong demand by the new car rental industry,” Naamsa added. www.southafricamag.com
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Barry Hilton
Everyone’s favourite cousin.
B
arry Hilton doesn’t need an introduction. Say “the Cousin” and everybody knows exactly what you are talking about. He has reached international status as a stand-up comedian and is considered to be one of South Africa’s greatest, a household name with his distinctive brand of humour. “I was so poor growing up. If I wasn’t a 10
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boy, I’d have had nothing to play with,” jokes a humble Hilton, who became a professional comedian in 1983. Today, he is known as being the “cleanest comedian in South Africa” and he prides himself on his optimistic outlook on life. “I am proudly South African,” he says. Many agree that Barry is, without a doubt, one of the top comedians SA has ever seen. He has performed to sell-out crowds locally
Barry Hilton people
and internationally and was the first South African comedian to perform at the prestigious London comedy club, The Comedy Store. His popularity spans all walks of life and he is one of only a few stand-up comedians to have achieved this type of following. “I just talk about life, what I see - taking every day situations and turning them into hilarious skits on stage,” says Hilton. His comedic approach can, of course, by its very nature, go wrong. Sometimes you just say the wrong thing. But the Cousin get’s it right a lot more than he gets it wrong. “I’ve been in the industry for 27 years, so have been around. Most of the time, we’re rolling around the floor in fits of laughter. But it doesn’t go to plan sometimes and there is a fine line between comedy and rage.” Barry went onto recall a time he called God a “leb”. “This is true, a lady in the audience got very upset at that. She phones me up after and says, “How dare you say that.” I said, “Why?” and she says, “You can’t talk about God in that way.” She got more and more angry, but eventually I reasoned with her. “God’s supposed to be everywhere so it means he’s Lebanese, American, South African, Indian and white and coloured.” She came around to my thinking.” This is a great anecdote from an engaging and generous entertainer who is known (and loved) for an uncanny ability to recognise the fine line between laughing at and laughing with his audience. He handles an array of sensitive issues with skill and people warm to his open personality. “A girl phoned me the other day and said, “Come on over; nobody’s home.” I went over. Nobody was home,” he says in response. “In all seriousness, I pull out all the stops for audiences.” Barry isn’t afraid to poke fun at himself and truly believes in the equation ‘Tragedy
+ Time = Comedy’. “Here is a story, I was working a few months ago in Sibaya Casino & Entertainment Kingdom. It is a massive casino and it holds 780 people. I was just about to go on stage one evening when my brother phoned me. He was gravely ill and was dying of cancer. So, I spoke to him and he said, “listen Baz, best you come and see me because my time is up.” I said, “Okay, I love you very much.” I put the phone down, and then they announced me on stage. “Ladies and Gentlemen, Barry Hilton.” I walked on stage and said, “My brother just phoned me, he has cancer, and he hasn’t got long – what should he do?” I said, “look, commit fraud, they’ll give you 9 years.” That’s funny - of course, it is - but that is how I think of my brother. I use comedy to get me through the everyday situations. That is how we do it in SA.” Barry’s optimistic outlook on life makes the audience feel as one. “I think that is true of a few South African comedians. South African comedians are great. We are known for our sense of humour and the ability to laugh at ourselves. What is it about South African humour that makes it so unique? Well, I suppose it is because we can openly talk about each other without anyone being offended. “I have this great joke about a young Xhosa boy and his amakhwenkwe. We can joke about anything. Yes, I have been in the industry since 1983, and it has changed over the years. But remember, funny is funny!” Barry likes to think of himself as a role model for other South Africans. “A lot of guys have me there as a target,” he says. ”They say, “I have to beat that b*st@rd.” I find the comics that despise you and hate you outwardly are those that admire you most. It is big competition and you have to be better than the next guy.”
I was so poor growing up. If I wasn’t a boy, I’d have had nothing to play with
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BARRY HILTON FAST FACT Name: Barry Hilton Born: 1956 Fast facts: Barry performs an average of 150 shows a year in South Africa and was the first to perform at the Runway Bar, a Johannesburg club that catered to 95 percent British immigrants in the late 80s early 90s. Nickname: The Cousin So what is his funniest moment on stage? “I’ll never forget this,” he answers, “I was working in a club in Cape Town called the River Club. I don’t have a scripted show and here I am, I’m working two sets, and at the beginning of the first set I was talking about how I had just gone to the Koeberg Nature Reserve. I was talking about giraffes and how they walk and all that and how one is always on the lookout and that sort of thing. So, anyways, I digressed from that because that is what I do, and then I came back to it. I was about 45 minutes into the second set and there was a guy in the front row just taking a beer and I said, “So anyways, the giraffe”. He went… You know how you 12
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laugh and you blow everything out? He blew into his beer and it foamed everywhere. It went all over the front row and we laughed and laughed. It was guaranteed the best moment on stage ever. We were paralysed. We couldn’t stop laughing. This guy’s reaction was just brilliant. I was crying. It was brilliant. It was so, so funny.” Barry has a several icons, including Richard Pryor, his comedy hero. He is also a big fan of fellow South African Mel Miller, a hilariously funny comedian, and he is equally fond of John Vlismus and a number of other South African comedians. “John is a nice guy and really hot at the moment,” he says. “There are a lot of good South African comics.” For fun, we asked him which three South African’s he would want to be stranded on a desert island with. “Raymond Ackerman because he will work out a way, not only to get us off the island, but turn it into a tourist resort and a grocery store. I would definitely take Joe Parker, a South African stand up comic. He is my all-time favourite South African comic. He’ll keep me laughing all the time. And I’d better pick the wife. You have to take the wife. I don’t know which one; I’ve had three. So I’d have to choose. I couldn’t take them all, could you imagine? It would be like Jacob Zuma. I’m like him; I’ve had three wives. But mine have all been at different times. He has them all at once, obviously.” Barry is happily married to Sandy and has six children, accumulated over the years (and marriages). “I have a very happy life here in Port Elizabeth. Sandy, the kids and myself are all very happy. “For kicks I fish in my spare time; I love it – there is no audience. I always put them back.” In addition to his tour shows and other activities (DVDs, films and TV shows like the Generation Game), Barry has devised a motivational team-building concept for corporate companies. His “Laughter Factory” shows companies how to bring more laughter into their daily business and professional life
Barry Hilton people
and that “success comes with laughter”. “It is great to be the best, but it is far greater to be best liked. If you share knowledge and you give it to people you become a winner. It is the people that don’t share knowledge that are the losers.” Clients include Microsoft SA, Anglo Gold, First National Bank, Standard Bank, Vodacom, Sun International and Hewlett Packard. “I show people how to bring more laughter into the workplace, and how success comes with laughter.” Which of his jokes would he most like to be remembered for? I can’t feel my legs – written in 1983. Barry pens all his own material and we look forward to hearing more from him in the future.
“One of my favourite skits is one I do about going to hospital and it is about having a procedure on your penis, or your boytjie. To cut the story short, I had a procedure on my penis. I had a reverse vasectomy. I got married again and I wanted to have another child. The story is called “If you use an electronic microscope on my boytjie.” The doctor said to me, “Don’t worry Baz, you’re my mate, we have all this equipment here and great machines. It’ll be fine.” There they are, working on my testicles and the guy said to me, “We have this new machine, it is an electro-microscope.” I said, “Listen, if you tell anybody you had to use an electro-microscope on my penis….” That is Barry Hilton! END
What is it about South African humour that makes it so unique? Well, I suppose it is because we can openly talk about each other without anyone being offended
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ism
art? IS IT AN
OR IS IT
Riason Naidoo, director of the SA National Gallery, gives an honest view of the South African art scene.
R
iason Naidoo, 40, is the first black director of Art Collections at the Cape Town-based South African National Gallery and Old Town House (known collectively as Iziko). His exhibition 1910 – 2010: From Pierneef to Gugulective caused ructions in some SA art circles, with a critic accusing him of ‘WalMarting South African art’. He spoke to us about art, politics and inclusivity.
Was it difficult, is it difficult to enter the art world as a black South African – considering our history? Even studying art at University, this was in 1992 to 1995 – we had 40 14
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Is it an ism or is it art? CULTURE
students and only three were non-white. I had heard of Gerard Sekoto but that was about it. Exhibitions focussed on black artists came only after 1994. Today its very different – but there are still problems – if you look at the universities and who is teaching art and who is writing about art, and many of the art museum directors, it is still largely white with one or two exceptions. I think that will change over time but I would say there hasn’t been too much change in the art world. Is such a thing as South African art? How would you define it? Absolutely. I can break that up into two parts. Obviously there is an indigenous South African art in terms of things like Ndebele beadwork or Venda sculptures. In terms of modern and contemporary history – that’s what 1910 – 2010: From Pierneef to Gugulective is about. It’s asking when modern SA art started to differentiate itself from other modern movements while still being influenced by Europe. You had people like Irma Stern, Pierneef and Maggie Loubser – Irma Stern studied in Germany, Pierneef studied in Holland – bringing ideas to South Africa and responding to a SA environment. For me, that was more interesting than what happened with colonial paintings you could see anywhere in the world – the portraits and hunting scenes. Some of the furore about the new exhibition was caused by the removal of paintings, including scenes by Thomas Gainsborough and Joshua Reynolds (part of the Sir Abe Bailey bequest), to make way for various South African artworks. The bequest, one of the biggest collections of British sporting art, was donated by Sir Abe Bailey, a South African mining magnate. He donated more than 400 works – on show from 1947 – to the gallery on condition some were always on show. Riason got permission from the Sir
Irma Stern’s Bahora Girl
Art on the up
Bonhams sold Irma Stern’s Bahora Girl to a South African buyer for a record R26.7m in London in October, a new world record for South African art at auction. Head of South African Art at Bonhams, Giles Peppiatt said: “Once again Bonhams has demonstrated the growing interest in South African art and the wisdom of selling in London to an international audience.” Pierneef’s Bosveld sold for R8m and the entire auction of 151 pieces raised R66.8m. Hannah O’Leary of Bonhams said that works by black South African artists like Gerard Sekoto and George Pemba are closing the gap. “Last year a Sekoto sold for £330,000,” she said. Bonhams said ‘Resistance Art’, created under apartheid was “increasingly considered of utmost national importance”. Next Bonhams SA Art auction on March 23; bonhams.com www.southafricamag.com 15
Abe Bailey Trust to take the approximately 80 hanging paintings down. How did you create the exhibition? I visited the Johannesburg Art Gallery, Pretoria Art Museum, the Durban Art Gallery, the Tatham Art Gallery in Pietermaritzburg and university, corporate and private collections to fill a lot of the gaps. It was important that other communities could see their histories reflected in the gallery – but then it becomes complex. How so? Historically access to education was harder and black artists were not allowed to study art at universities – so who were these artists who worked outside formal institutions, what are their stories and how do they fit into a larger South African art narrative? These are all challenges to working in the art world in SA. What was the plan? Having visitors coming to SA for the World Cup, I thought it was strategic to focus on ‘reflecting SA art history unique to the country – including the period from 1960 to 1990’, what many historians call resistance art. How is the exhibition ordered? There is a chronological order, starting from early Pierneef, through early Modernism and the 1950s and then into Resistance Art and art post 1990. Half the exhibition is devoted to contemporary art since 1990. This is the first time that the whole National Gallery has being used for one show – I made interventions – grouping works in themes and making visual links. Such as? You have different versions of history side by side and in juxtaposition. In the same room of Pierneef’s painting of the Union buildings I have a contemporary sculpture by Anton 16
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Momberg of Gandhi, who lived in South Africa for 21 years at the same time as the Union – he left in 1914. Then there is a sculpture by Willie Bester entitled ‘1913 Land Act’ next to the Pierneef of the Union Building. This kind of juxtaposition has not been done before – a minority have responded negatively. I was trying to tell a more complete story of SA art... What about the Gugulective? They’re a collective and they’re making interesting work in different media... It was the dropping of the Bailey Bequest that drew criticism? We fully intend to draw on the Bequest for future exhibitions – but what’s important is it is not static. Two of our gallery rooms were static for about 20 years. It’s all about invoking debate. Are different groups still bringing different cultural heritages to SA? Absolutely – this is one of the advantages of a multi-cultural society. Pierneef to Gugulective
Is it an ism or is it art? CULTURE
I love Pierneef’s works, Is he viewed as an ‘apartheid’ artist? No, I think that with a lot of his paintings from the 1920s and 30s, what a lot of art historians have read into his work is that the land is closely related to Afrikaner nationalism and there is an absence of any people –especially black people
Background… Born in Chatsworth, Durban in 1970, Raison studied art to matric. He completed a BA and MA in Fine Art at Wits. Curated photographic exhibitions – including a 2004 exhibition on Durban-based photographer Ranjith Kally, “who has been working for almost 60 years.” He explored South African Indian history and identity in Drum magazine, publishing, The Indian in Drum Magazine in the 1950s. Riason was director of a bi-lateral SA & Mali project, curating the Timbuktu Manuscripts in Mali. His works: painting and new media are represented in SA collections. His most recent work was an animation for the African Photo Bieanalle.
– in his paintings. It’s about structuring the landscape through his paintings and linked to Afrikaner nationalism. Can you like someone’s art without seeing their political connotations? On a purely aesthetic level a work can be beautiful. Its often with hindsight that people come up with new interpretations – its up to the viewer to accept or reject these. Where to from here for SA art? It looks very promising. Look at the global trends, art doesn’t exist in isolation. The last few decades and even the last 100 years have been largely based on European and American trends but now there are signs of China, India and renewed interest in art being produced in this country and new markets. I think Brazil and maybe Mexico are hotspots. Are SA artists doing well? William Kentridge is popular and brings attention to SA art. David Goldblatt exhibits all over the world and there is a whole new crop of artists – like Mary Sibande who was the only African among a group of artists commissioned for a work outside the UN Headquarters – she is not yet 30. What’s next? The upcoming exhibition will be called Adornment and look at dress, costume and art history. We will draw on works from Irma Stern and the Bailey Bequest, pairing how people dressed with contemporary SA designers. END www.southafricamag.com 17
eart of h e th
l p a s e h t Méribel in the French Alps offers 600km of runs and has 200 ski lifts to choose from – and that’s only the beginning. words Inger Smith
P
ristine snow-capped peaks surround us as the ski lift takes us higher into the French Alps. The mountains are grand and beautiful but their size makes me feel like an ant beneath the Eiffel Tower. After all, these are some of the highest mountains in Europe with 80 percent of the ski area above 1,800m. “Don’t worry, I’ll look after you – today, I am your second mother,” says my ski instructor Veronique with a smile. She knows I’m slightly apprehensive about launching myself down these giants, but the excitement of being at one of the finest downhill resorts in the world soon takes over. And it isn’t long before 18
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I understand why skiers and boarders come from far and away on a quest to find the ‘Holy Trail’ of Alpine sports.
Big is best We’re in Méribel, at the heart of the legendary Three Valleys, surrounded by the largest downhill area in the world with 600km of runs and some 200 lifts to choose from. There’s a nice selection of snow parks with halfpipes and jumps, plus endless offpiste opportunities for adrenaline junkies. Its runs suit riders of all abilities, and Méribel’s long, wide slopes give visitors plenty of room to manoeuver.
The heart of the Alps TRAVEL
get round SNOWSHOES: The French Ski School ESF (esf-meribel.com) offers snowshoeing lessons at €28.30 for a half day.
SEGWAY:
GETTING THERE: A number of carriers, including KLM, Air France, British Airways and Lufthansa, operate flights to Paris where you can jump on the Moutiers ski train.
visas:
This scooter reaches 20km/h. Hire one in Méribel-Mottaret at €5 for 10 minutes. An hour’s guided tour costs €25.
South Africans need a Schengen visa.
The local town buses (Meribus) are free and run every day between 7am and midnight, in intervals of 15 or 30 minutes.
French.
BUSES:
when to go:
currency:
Euro. 1 EUR = 9.53303 ZAR (at time of writing).
LANGUAGE: going out:
A pint costs €6-7. meribel.net
Dec to April www.southafricamag.com 19
The heart of the Alps TRAVEL
on top of the world After a few hours on the slope, it’s time to refuel. And what better way then while you’re still out on the piste with a chance to combine French cuisine with fantastic mountain views? Park up your skis and boards and tuck in. One of the most beautiful spots is Restaurant Les Pierres Plates on top of the La Saulire Mountain at 2738m. The lift will take you straight up to the summit, where you can enjoy a good choice of hearty dishes before strapping on your skis and heading downhill. Another pearl is the Oyster Bar at Cote 2000. Enjoy oysters and wine in a cosy Alpine setting on its magnificent sun terrace . Prices are reasonable with six oysters costing €12.
nightlife a go go A ski trip is not complete without an après-ski
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session, so unbuckle your bindings and let your hair down. At Le Rond Point the party pumps from early afternoon until 7.30pm seven days a week. Continue the party at Le Poste de Secours, a stylish club wit funky tunes and a divine cocktail menu, slap-bang in the centre of town. Barometer, a laid-back bar where you can try the notorious French brew Mutzig Old Lager (7.3%) is not far away and for late-night dancing head to Dick’s Tea Bar. If you’re heading to Méribel in March, check out the Altitude comedy and music event (altitudefestival.com) and Little World music fest (littleworldfestival.com). END
» Inger Smith stayed at Hotel l’Orée des
pistes (meribel-oree.com), which costs €160 per person per night half-board. Inger took ski lessons with ESF French Ski School (esfmeribel.com). One day ski passes cost €39.50.
Springboks SPORT
Bok rugby crisis Springbok rugby is in a serious crisis with the World Cup in New Zealand kicking off just a year from now and they’ve been warned to expect a battle when they face the Barbarians in December WRITTEN BY Pierre de Villiers
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f the battle-weary Springboks are expecting an easy game against the Barbarians when the two teams meet at Twickenham in December, the World Champions are in for a rude awakening. Spend some time with Baa-baas assistant coach Alan Solomons and it soon becomes clear that whoever wears the black and white jersey will be breathing fire to ensure South Africa end their year on a crushing low. www.southafricamag.com 21
“People are expecting the Barbarians to play entertaining rugby but it’s extremely important that the team is competitive,” says Solomons, who will be assisting fellow South African Nick Mallett. “While the concept of the Baa-baas is fantastic, the team actually has to win games consistently otherwise people will start wondering whether these matches are really worth anything. Playing for the Barbarians is a privilege and with that privilege comes a responsibility to do well and keep the team relevant. Players who pull on that black and white jersey know this all to well so you will see them giving their all.” There are few coaches better qualified to get the best out of the global stars who play for the Barbarians than Solomons. In 2003 the South African coached the side to victories over England, Wales and Scotland and last year assisted Mallett in plotting the downfall of the All Blacks at Twickenham. While the Baabaas are renowned for their running rugby, Solomons stresses that the success of the side depends on how wellorganised the defence is. “Defence is very much a barometer of what the attitude is like in the team,” explains Solomons, who was assistant coach to Nick Mallett when the Boks won 17 games in a row in the late 1990s. “If the side defends well its shows the 22
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Springboks sport
Role of honour The list of players to run out for the Barbarians over the years, reads like who’s who of rugby. Here are some of the stars who have shone in black and white. • Bryan Habana – The flying Bok wing scored a sensational hat-trick against the All Blacks last year, including a 70 metre dash after one of his trademark interceptions. • Jonah Lomu – The most famous player of all time played four games for the Baa-baas between 2000 and 2002 scoring five tries. • Francois Pienaar – South Africa’s iconic World Cup winner played one game for the Baa-baas against Leicester in 1999. • David Campese – The wizard from Aus played four games for the Baabaas in 1989 and 1990, running rings around Leicester, England and Wales.
attitude of the players is right and things flow quite smoothly from there. In the past we have been able to get the attitude spoton and I’m sure it will be the same again this year.” Whether the Barbarians defensive line will be tested on a regular basis by the under-firing Springboks remains to be seen. After a disastrous Tri-Nations, South Africa headed for their Britain and Ireland tour without 13 of their first choice players. However, Solomons is loath to join the prophets of doom. “No Springbok side is a weak side,” he says. “South Africa has fine rugby players and they have enormous strength in depth. Of course, the Boks will be disappointed with the Tri-Nations and I’m sure they’ll be looking to put things right on this Grand
Slam tour. Whatever side they put out will be a good team and we will have to be well prepared to match them.” While Solomons vows that the Barbarians players will be well drilled, the coach is quick to point out that being part of the team will still be a lot of fun. “The players are looked after extremely well and usually have a fantastic time,” Solomons, who is currently coaching the Southern Kings in South Africa, says. “These big stars from different countries get to sit down and chat with each other, something they don’t often have the opportunity to do in this professional era. That is something the players really enjoy and appreciate. That’s part of it - to have great time. Of course, part of that great experience is performing well on the day.” END www.southafricamag.com 23
The battle for sa’s
football future
a’s
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South African Football Association FEATURE
South Africa Magazine’s Ian Armitage talks with SA Football Association (Safa) chief executive Leslie Sedibe about the World Cup, life after it and the future of South African football.
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his year’s World Cup was one of many firsts. South Africa became the first African nation to host the tournament, vuvuzelas made their mark on the footballing world (so did the jabulani ball), and Spain captured football’s Holy Grail for the first time (I’ve resisted the need to mention Paul the Octopus). Perhaps the most significant first, however, was that, for the first time at a World Cup, Africa had six representatives - Algeria, Cameroon, Ghana, Ivory Coast, Nigeria, and (of course) South Africa. Sadly the continent under-performed, registering just three wins from 18 group games (I have to point out that strong football nations Italy and France also crashed out at the group stage). It was clear Africa had failed to learn from previous mistakes: only Ghana actually prepared well and they enjoyed a fine tournament. South Africa were history’s lowest-ranked World Cup hosts - our 83rd place was worse than the United States (23rd) in 1994 and Japan and South Korea (32nd and 40th respectively) in 2002. But Bafana Bafana left football’s greatest stage with their heads held high, missing out on a place in the last 16 on goal difference. The performance is being mooted as a “building block” for better things by fans, commentators, players, managers and officials. “The France game was fantastic and a great source of pride,” says SA Football Association (Safa) chief executive Leslie Sedibe. “We avoided becoming the first World Cup hosts to never win a game. And, though we did become the first hosts to miss out on qualifying for the second phase, we made the nation proud.” Bafana certainly had a chaotic World Cup build up. When Carlos Alberto Parreira, who left his role of coach after the tournament, was reappointed in October 2009 (after leaving the role in 2008), he took charge of a side that had lost eight in nine matches. However he turned www.southafricamag.com 25
South African Football Association FEATURE
things around and went unbeaten for all but one of his 15 internationals (the Uruguay game being his one defeat).
DEVELOPMENT PLANS IGNORED? What was clear going into the World Cup was that developmental plans had been ignored. Stuart Baxter, who led South Africa between 2004 and 2006, sums things up: “As soon as I mentioned the identification programme, they said we had one. The same for the academy, even though there weren’t really any.” Sedibe was one of the men brought into change this, joining Safa in January. “The goal in essence is to restore Bafana Bafana as
the No1 team in Africa and in a respectable position in the world,” Sedibe says. Key to this is, he adds, “going back to the basics” and developing football at grass roots. “Investing in young soccer players is a key aspect to South Africa’s football future,” he explains. “Without developing players from the regional structures you cannot get talented players that you need in the national team. You need to invest at grass roots level in order to produce a pool of talented players. “We need to invest in grass roots football in South Africa perhaps more than other nations. Sadly, many budding soccer stars never play competitively because they can’t afford the kit or boots, or they lack access to essentials
The France game was fantastic and a great source of pride
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South African Football Association FEATURE
such as goalposts or even a ball or pitch.” He says Safa has a mandate “to promote, advance, administer, coordinate and generally encourage the game of football in South Africa.”
SIGNS OF IMPROVEMENT Things are improving. South Africa is – under new coach Pitso Mosimane - building on the promising foundations of the World Cup. “Today the team is ranked 52. We also are in the top 10 in Africa, which is pretty much where we want to be for this year. Going into the New Year we want to continue to improve our Fifa ranking. This is actually one of the key targets in terms of the contract of the coach. The coach has a performance agreement in place and it is geared towards insuring everybody is accountable and that everyone delivers against performance targets.” Sedibe says Mosimane has been set various
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goals by Safa. Those goals are that Bafana Bafana qualify for the next two Africa Cup of Nations and the 2014 World Cup. “The World Cup preparations were hampered,” says Sedibe. “When Carlos was reappointed Safa made a commitment that we would ideally like a South African to be trained and developed to coach the national team. That’s where Pitso Mosimane came into things – he was academy coach at the time. One of the criticisms was that we lacked identity and we needed a system of play and coaching that had identity. Carlos knew his involvement and worked hard to make sure we achieved that sense of identity in our football. “Pitso has a four-year contract and his first job is to qualify for the 2012 Africa Cup of Nations in Gabon and Equatorial Guinea, then the same competition in Libya in 2013,” Sedibe adds. “Qualification for 2012 is going well and
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we have a big game coming up against Egypt at home, which if we win will put us in a very strong position. “Pitso’s deal also spans the all-important qualifying campaign for the 2014 World Cup in Brazil. And we think it is important we achieve that.” Since the World Cup Bafana have beaten Ghana in a friendly game, beaten Niger in an Afcon qualifier and played out a draw against a strong Sierra Leone side, which recently beat Egypt. “All in all, since the beginning of the year, the team has played 18 matches and has only lost once and that was against Uruguay in the World Cup; they finished fourth in the tournament,” Sedibe says.
GRASS ROOTS While the revolution in Bafana remains on the right track, the same can’t be said for the junior national teams. The national under-20 and national under-17 have both struggled and the Banyana Banyana have been woeful. Sedibe has a real passion for his job. He is determined to change things at all levels. “There is no organised, competitive football in many cities across the country and we are changing that,” says Sedibe. “That will help. “We are pouring money into townships, into poorer schools — the traditional sources of talent in South Africa, channels that have stagnated and become clogged in the postapartheid era. “We have also implemented grass-roots structures,” he adds. A centralised development plan is now in place. “We want to vastly improve the progression of South Africa in footballing circles,” Sedibe continues. “Since winning the African Cup of Nations in 1996 we have really slipped away. We certainly have the financial resources and an infrastructure in facilities that other African countries can only dream of, so we have
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an advantage where it come to becoming a footballing force on the continent again.”
HOW BEST TO INVEST THE WORLD CUP WINDFALL? Safa has received an estimated R1 billion windfall from the World Cup. Sedibe says the money will be spent with the “long-term” in mind rather than near-term. “We are also working on getting the right sponsorships needed to cover development,” he says. “We have had World Cups in USA and South Korea and both have continued sporting success after hosting those tournaments. Do we think we can do the same? Well we are investing funds
South African Football Association FEATURE
gained during the World Cup back into football will return South African football to its “rightful place”.
END OF THE ROAD
gained into grassroots and investing back into football. We are learning from them, particularly the USA. “Interestingly, 17 November is international Fifa day and we are playing against the USA,” he adds. “It is no coincidence that the USA is coming to South Africa. The reason we are playing them is that we are in the process of entering into a structured relationship with them and one of the things the USA will be doing with us is helping us with our development programmes. There are major lessons we can learn from the USA. We have asked them to partner with us, to help us, and bring our game forward.” Sedibe truly believes that investing funds
There has been a lot of press speculation that Sedibe will quit his role in December, when his current contract expires. When Safa president Kirsten Nematandani announced Sedibe’s appointment in January, he said “although it was a 12-month contract, Sedibe was going to be around for a long time as part of our new vision for South African soccer”. Sedibe is coy about his imminent move from the association, saying he is still engaged in talks. “It’s true that I wanted to resign, but there have since been discussions and attempts of persuasion and we’ll see what happens,” Sedibe says. “My contract is 12-months. Will I renew it when it expires in December? We are in discussions with the administration. It is a matter of public record now that I indicated my desire to move on. I had asked if I could move on, but they asked if I could stay and so we are in discussions with the leadership in t erms of my future role. I would obviously want to continue to play a role in south African football.” Let’s hope he does. “I don’t believe we are too far off. We have improved massively in the space of 12-months,” Sedibe says. “All it needs is a well run administration and we need people that are committed to football, the team and the players and just generally for people to be held accountable for what they do.” The tide of South African football seems to be turning - lets hope it isn’t another false dawn and that a tales of power, greed, ambition, political connections and long-established rivalry are a thing of the past. END
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R A C I N G
F ROM
DUR B A N
TO T H E CAPE
Overhead photo of Greyville Racecourse with Durban in the background
Gold Circle Horseracing & Betting is one of the two companies that control all horse racing and tote betting activities in South Africa: John O’Hanlon talks to COO Graeme Hawkins about the difficulties the industry has experienced and Gold Circle’s strategies for survival and growth. 34
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Gold Circle FEATURE
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or historic reasons horse racing in South Africa is divided by region, with Phumelela Gaming and Leisure Limited running activities in the Free State, Northern Cape, Eastern Cape and Gauteng: Gold Circle has the reins in the Western Cape and KwaZulu-Natal. It owns the Clairwood circuit in KZN as well as the Summerveld Training Centre, and holds the Greyville and Scottsville tracks on lease from Durban and Pietermaritzburg councils respectively. In Western Cape it owns the Kenilworth racetrack and leases Durbanville from the City of Cape Town. All racing in South Africa is run on the flat, and the industry is as deeply rooted in the national consciousness as in the UK, for example, or France. There is at least one race meeting every day in the year, and Gold Circle’s courses host some of the classics including the Vodacom Durban July Handicap, the African continent’s biggest and most prestigious event, first run in 1897 at its flagship Greyville racecourse. The August meeting features the Canon Gold Cup, while another of South Africa’s best attended horse races, the J&B Met run in January, is a conditions race that is also a huge social event in Cape Town and one of the highlights of the South African summer season. Gold Circle’s primary source of revenue is the commission it receives through the Tote, though which the company earns around R400 million a year. “We own the Tote and all the totalisator channels, whether on-course betting, internet, telephone betting or off course totes,” says Graeme Hawkins. Punters in South Africa will be familiar with the TAB brand, run
by Gold Circle in collaboration with Phumelela Gaming – it is an example of how these two companies collaborate rather than compete. South Africa has been sheltered from the global recession but has not altogether escaped, and the gaming sector is one that has been feeling the pinch over the last couple of years. Gold Circle’s turnover has fallen by about 10 percent over this period, and the company dipped into loss in the 2008/09 and 2009/10 financial years. During this time it has come through a period of restructuring, cutting over R14 million in operating costs and addressing one of its perceived weaknesses, the mismatch between prize money and tote revenues. In the days of plenty it was possible to maintain high stakes in the industry; however the downturn has seen other countries cutting their levels of prize money in line with lower income levels from betting. “We were loath to follow countries like Ireland and the UK in reducing prize money,” says Hawkins. “We were able to hold the levels for two years, using our reserves, because we were trying to avoid sending negative messages through the industry for as long as we could.” Now Gold Circle has had to introduce a formula for the payment of stake money, which will now represent a percentage of the annual total of totalisator bets laid. So these have been difficult times for the industry, but Gold Circle is weathering the storm, considering the effect of the recession on the industry as a whole says Hawkins. “It is probably fair to say that the entire South African betting industry, lotto, casinos,
We recognised that there was a gap in the market because nobody else was exploiting these opportunities: we had to look beyond our borders
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Gold Circle FEATURE
sports betting as well as horse racing, is approaching saturation. Though it will be difficult to grow domestic business, we have been developing other strategic initiatives that we think will in the future serve the company well and put it in a far more profitable and sustainable position.” Other sources of revenue include sponsorships, land rental and the like, however going forward the best hope for growth probably lies in international betting initiatives and to some extent diversification into other betting products and sports other than racing. Reflecting upon South Africa’s constraints of population and income, the industry started some years ago to consider how it might grow beyond the domestic market. “We recognised that there was a gap in the market because nobody else was exploiting these opportunities: we had to look beyond our borders. We could not just rely on the domestic product to grow our business. So in collaboration with Phumelela Gaming & Leisure we established an international division,” Hawkins explains. The two companies set up a joint venture company called Phumelela Gold Enterprises (PGE). This drives both partners’ international business, selling live South African racing images abroad and importing overseas meetings for the South African betting industry. “Now about R100 million or a quarter of Gold Circle’s annual revenue comes from imported product,” Hawkins says. “This includes Australian, UK, French, Hong Kong or Singapore racing that we bet on locally, as well as what we sell to those countries.” At any one time, South African punters can bet in real time on races in different parts of the
world. And this is a market that has only just started to open up, he believes, offering more opportunities for growth than the domestic horse racing market can offer. While horse racing will always be Gold Circle’s core business, domestic growth is likely to come as much from other channels. One of these is non-tote bookmaking operations through Betting World, another 60/40 JV company, with PGL owning the larger share. For complicated regulatory reasons Betting World can only operate licensed premises in Gauteng and the Western Cape though it conducts telephone and online betting throughout the country. This is a fixed-odds bookmaking operation, and it is not limited to racing. “The biggest part of that business is still horse racing, but interest in other sports is increasing all the time. We have started betting on soccer in particular.” UK fixtures are very popular; every single Premier League match is shown live on South African TV without exception. TAB’s Soccer 6 and Soccer 4 are pool bets, and they are growing in popularity year by year, Hawkins says. The website gives odds on racing meetings all over the world as well as soccer, motorsport, boxing, rugby, cricket and even tennis. With horse racing under pressure globally, perhaps it’s time to offer people different options. However as a horse racing professional Hawkins has no doubt about the future of what is more a way of life than a sport: “We will work our way through the difficult times, just making sure we are packaging and marketing it in a way that keeps pace with the changing times.” END
About R100 million or a quarter of Gold Circle’s annual revenue comes from imported product
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It’s all about
WINNERS!
In the shadow of the winning post, feel the thrill of victory as one sleek thoroughbred thunders past another to land the spoils. Gold Circle, the company that controls horse racing in KwaZulu-Natal and the Western Cape, plays host to the two most important racing seasons on the South African racing calendar. The 100-day Champions Season headlined by the Vodacome Durban July during the KZN winter, and the Sizzling Cape Summer season with the J & B Met and L’Ormarins Queens Plate among the highlights. These racing carnivals attract the cream of the continent’s thoroughbred racehorses, jockeys and trainers, all competing in the cut and thrust of a globally competitive sport. The various training establishments throughout the two provinces produce winners year round with professional trainers and a world of skilled specialists keeping the breeding, racing and betting industries on a winning track. Gold Circle is proud to play a leading role in supporting the South African economy by promoting tourism, providing employment, improving the skills base and advancing transformation in a winning nation.
I nterview
Cas Coovadia MD of The Banking Association of South Africa
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Banking Association of South Africa FEATURE
Cas Coovadia, managing director of the Banking Association of South Africa, talks to South Africa Magazine about the industry’s progress.
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he banking sector is critical to any economy. South Africa has a developed and well-regulated banking system, comparable to that of any industrialised country. The sector has undergone a lot of changes in the past two decades. The promulgation of the Banks Act of 1990 led to a number of banking licenses being issued and by the end of 2001 there were 43 registered banks in South Africa. Saambou’s financial troubles in 2002, however, resulted in a run on BOE and other smaller banks. A number of foreign banks have since established a presence in SA and others have acquired stakes in major banks. It is a healthy sector. “The SA banking industry is currently made up of 19 registered banks, two mutual banks, 13 local branches of foreign banks, and 43 foreign banks with approved local
We think SA has a healthy level of competition in the market, helping low income and the previously ‘unbankable’ get access to finance representative offices,” says Cas Coovadia, managing director of the Banking Association of South Africa. “There have been a number of changes in respect of the regulatory environment, products, and number of players over the years. We think SA has a healthy level of competition in the market, helping low income and the previously ‘unbankable’ get access to finance.” The South African banking system is, he says, world class, with adequate capital resources, technology and infrastructure, as well as a strong regulatory and supervisory environment. www.southafricamag.com 39
Banking Association of South Africa FEATURE
FINANCIAL SECTOR CHARTER The Financial Sector Charter (FSC), a voluntary transformation charter, in was signed in 2003 for implementation in 2004. It means financial institutions have committed to ‘actively promoting a transformed, vibrant, and globally competitive financial sector that reflects the demographics of South Africa, and contributing to the establishment of an equitable society by effectively providing accessible financial services to black people and by directing investment into targeted sectors of the economy’. Coovadia, 59, played a key role in the negotiations around the Charter and has been responsible for driving its implementation. He has also been responsible, at a strategic and policy level, for the industry’s initiatives in low40
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income housing, microfinance, SMME finance, organised business as well as lobbying and Government interaction. “The banking sector has played a major part in the transformation process in the financial industry and we intend to ensure that it continues playing that role,” he says. “How are the banks progressing in terms of the financial sector charter as an industry? Our view is that the industry has done very well generally. “One thing we are always working to improve is to consistently address South Africa’s unbanked population,” he adds. “The banking sector has taken some great strides. The implementation of the FSC resulted in an increase in product offerings, with smaller banks emerging as significant players in enabling access to financial
Citi never sleeps
SM
services and creating some competition in catering for the needs of this market through entry-level banking. “All said, we still need to do more – we need to create a more diversified financial service sector that will have a regulatory environment where it makes it possible for different types of financial institutions to actually service different segments of the market,” Coovadia says. “So you could have cooperative banks for instance. You could have village banks. You could have savings and credit cooperatives. You could have microfinance institutions. I think that what we need is a regulatory environment that would enable all of those institutions, regulate that appropriately, depending on their market and their risk, and I think that will create a situation where there is interaction between formal commercial banks and those sorts of institutions to actually get services to where they need to be delivered.” 42
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STRONG REGULATORY SYSTEM Of course, the South African banking system is heavily regulated. Coovadia says this saved the sector from the global financial crisis that started in 2007, which resulted in bank bailouts in a number of countries. “The SA banks’ risk management systems are fairly robust,” he says. Banks also started to apply stricter lending measures as a result of the implementation of the National Credit Act in 2007. “In South Africa we really withstood the first phase of the crisis very well,” Coovadia explains. “That was the financial crisis.” The country, however, went through an economic recession in 2009, which had an impact on the banking sector. “We were affected by what I call the second phase of the crisis, which was a broader economic crisis. Our major trading partners were badly affected – it led to a slowdown in our economy and that obviously had an impact on the banking
Banking Association of South Africa FEATURE
sector because corporates started borrowing less, people started defaulting and so on. We did have an impact as a result of that, but it wasn’t as strong as some parts of Europe and America. We are still very well capitalised, we have liquidity, and not a single bank required a bailout, nor will that be the case. ” Talking further about the financial crisis, Coovadia adds: “We have been affected but things have started to pick up and the country is moving out of recession. “Has SA fared better than most? Yes. Our banks, mercifully, managed very well, but there’s no question SA has taken pain from the global economic crisis. Everyone agrees that SA’s banking system was largely sheltered from the subprime crisis. Fundamentally, the SA banking system is sound. We don’t have any significant exposure to the catalyst for the crisis overseas. “Things are picking up at the moment but it is slow,” Coovadia continues. “I think we are in for a tough 12 to 18 months. Again, primarily because of external factors: the rand is very strong at the moment. It has an impact on our export and we are an export-orientated economy. The rand is strong because of dollar weakness and inflow of funds as a result of better returns in emerging countries than in Europe or USA. I think, though, that we have turned the corner and growth is slowly starting to be seen.”
exchange rate. It is also reprioritising public spending in an effort to boost the economy and create five million jobs over the next 10 years. “Government has made moves to weaken the rand,” says Coovadia. “I think the businesses in the country would agree with what the government is doing. We would not have agreed with a direct intervention like we saw in the early 1990s, which actually caused a lot of pain. But to get rid of remaining exchange controls, and to look at possible reduction in interest rates to make our markets not as attractive to particularly short-term money coming in, those actions we would agree with.” Coovadia says there is a need to ensure high quality in Government budgeting and spending with appropriate bank, non-bank, supervision and regulation. “We have challenges,” he explains. “South Africa has always been in the situation where I think we have a very good policy environment but we fall short on implementation, for various reasons. So we continuously work with Government. I think the interaction between Government and business is reasonably healthy but we are continuously looking for ways, means and mechanisms through which we can improve.” The financial services sector is the biggest contributor to the South African economy, with the sector representing about 21 percent of GDP during the second quarter of 2010. After a contraction in growth for the most part of 2009, growth in the sector improved in fourth quarter of 2009 and has continued to improve, growing by 2.9 percent in the second quarter of 2010. END
How are the banks progressing in terms of the financial sector charter as an industry? Our view is that the industry has done very well generally
WEAKENING THE RAND The Government has recently said that it would weaken the rand to boost economic growth and create a more competitive
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Eskom FEATURE
S dawn A new
Following a tough (putting mildly) period, Eskom is on the road to recovery and preparing to deal with future challenges.
ince 1923, Eskom has been an integral part of South Africa. It has had recent, well documented, troubles but there is no denying certain facts: in 1994, 30 percent of all South Africans had access to electricity. That now stands at more than 70 percent; Eskom has extended electricity to millions of people. At the same time, the demand for electricity has doubled, on the back of robust economic growth. This growth all but exhausted Eskom’s surplus electricity generation capacity and things came to a head with the load shedding of 2007 and 2008. It was necessary to ensure that South Africa avoided a potential “overall nationwide blackout”. Criticism has been fierce, though. “Eskom’s guardians of strategy have failed in their responsibility to balance the competing strategies of commercialisation, electrification plus transformation with ever dwindling levels of funding,” one media commentator wrote. The main criticism seems to be that Eskom severely over invested during the Apartheid era and has struggled to cope with the demands placed on it in the new South Africa - not helped by Government attempts to commercialise the utility, ever-changing energy policy, low tariffs and the 2009 financial crisis. “2009 was one of the most difficult years in Eskom’s history,” explains Eskom spokesman and senior manager for nuclear stakeholder management Tony Stott. “The chairman of the board and the chief executive resigned; Eskom posted a loss for the year and lost consumer trust and confidence following a number of public crises - load shedding in 2008, leadership crisis and the financial crisis in 2009, to name a few.” The trouble is far from over. “We have an enormous challenge to match the demand and supply in the near future - as early as 2011 onwards,” says Stott. “We have some capacity expansion programmes, including the Medupi, Kusile and Ingula projects, and South Africa’s www.southafricamag.com 45
Eskom FEATURE
ever increasing demand for electricity has necessitated the return to service of mothballed power stations, like Camden power station, amongst other things.” South Africa is taking urgent action now to ensure the security of its power supply, he says. “It is the priority. Eskom is investing heavily to build new plants to ease a strained supply. “Eskom already owns and operates various coalfired, gas-fired, hydro, and pumped storage power stations, as well as one nuclear power station Koeberg. We sell power directly to approximately 6,000 industrial, 18,000 commercial, 70,000 agricultural, and millions of residential customers.”
TIMES ARE CHANGING This is a time of change. The recently published draft Integrated Resource Plan (IRP 2010), a 20-year electricity capacity programme released in October, suggested South Africa will reduce its reliance on coal, and push for nuclear and renewable energy. “South Africa currently relies on coal for almost all of its electricity supply, but the government has proposed that coal’s contribution should drop significantly,” Stott explains. “Nuclear and renewable energy are likely to be much bigger contributors to the country’s energy supply mix.” Nuclear currently supplies 1,800 MW from Koeberg power station, Africa’s only nuclear
We have an enormous challenge to match the demand and supply in the near future
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power plant near Cape Town. According to the IRP 2010 draft, the Government forecasts six 1,600 MW nuclear plants coming on stream between 2023 and 2029. The plan estimates that some 52,248 MW would need to be built on top of South Africa’s current supply of around 40,000 MW to meet fastrising demand and avoid the repeat of the 2008 power crisis. “The IRP 2010 provides the roadmap for the construction of new power stations,” Stott says. “The nuclear option is very appealing. A couple of years ago we had made a serious attempt to complete the commercial negotiations for a second nuclear power station. Both Westinghouse and Areva did a lot of work to submit bids but unfortunately, the global, and Eskom’s, financial position required Eskom to terminate those commercial negotiations. “That started in 2006 and the energy planning at the time showed that we needed to double generating capacity in South Africa,
by 2025. We have 40,000 MW of generating capacity, but studies showed we needed 80,000 MW by 2025. We started environmental impact assessment studies and knew we needed another 40,000 MW and investigated whether half of that – 20,000 MW – could be from nuclear power. Even in those days there were concerns we were too dependent on coal. About 90 percent of all our electricity comes from coal powered power stations and climate change was a big issue, like today, as was water – South Africa is a water stressed country. There were a lot of reasons to look at nuclear; the board was trying to move away from coal. They realised they might have to build one more coal station, but had a closer eye on renewables, particularly solar – SA has a lot of sun – and also the possibility of importing more hydroelectric power from our neighbouring countries. So there was a big drive to look at a different mix of electricitysupply technologies.
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“But the financial crunch came and our board correctly said hold-off until we sorted out funding. “That is being resolved through strong management and looking at the IRP2010 draft, new coal is out, while renewables, mainly wind and solar, and nuclear, are in. There is also a new focus on energy efficiency and making what we have stretch further. “These steps are significant as South Africa faces an energy shortfall.” Steps are also being taken to bring nonEskom power on to the grid. “Independent power producers (IPPs) are needed in South Africa’s energy future,” says Stott. “Government is playing a bigger role to introduce IPPs and take some of the pressure off Eskom.” There has been criticism that Eskom was trying to keep IPPs out of the market, but this, it seems, isn’t true. “Demand-side management, a power conservation programme and IPPs will
Eskom FEATURE
help to solve the energy problems,” adds Stott. “South Africa faces a tight electricity supply situation between 2011 and 2014 and then again from 2018 to 2024.” The state-owned power utility currently supplies some 95 percent of the South Africa’s power, but the government is keen to get private investors on board to help foot the bill for new power plants and reduce the strain on Eskom’s balance sheet. “From 2011 to 2016, to help avoid load shedding, we need more non-Eskom generation and increased energy efficiency,” says Stott.
TARIFF HIKES Following an extensive process of consultation and deliberation, the National Energy Regulator of South Africa (Nersa) approved controversial electricity price increases. There was a price increase of 24,8 percent in April, and there will be subsequent increases of 25,8 percent and 25,9 percent for 2011/12 and 2012/13 respectively. “A lot of this comes back to Eskom itself, it’s funding,” says Stott. “South Africa allowed the price of electricity to reduce – too much, as it happens. This was recognised by our regulator and they agreed that to get to a cost effective tariff the energy prices are going to have to increase dramatically. So for this current year and the next two years they have already said that the increase will be 25 percent - we had a 25 percent increase in April and then 25 next April and a third the following April. Indications are that the two years after that could also be 25 percent each year and then it will drop right down to something in single digits, maybe five or six percent, or even lower, along the lines of normal inflation. That enables Eskom to continue operations and it has also enables Eskom to maintain its credit ratings with the
financial agencies and institutions. “We are, it means, in a position to borrow money at favourable rates. Cost reflective electricity prices, as well as the renewable energy feed-in tariffs (REFIT) will also encourage the Independent Power Producers to enter the electricity-supply sector.” The IRP 2010 has set out expectations for Eskom and it also addresses the role of independent power producers, says Stott. “It is a welcome document,” he explains. “I have to add that Eskom and South Africa still have to face emission reduction targets, water shortages, massive funding requirements and many more challenges – all of this while recovering from the recession and investing in new infrastructure at a rate unprecedented in our country’s history. It is a bright future.” Construction of Koeberg began in 1976 and Unit 1 was synchronised to the grid on 4 April 1984, with Unit 2 following suit on 25 July 1985. Stott was involved in the commissioning and start up of both. He says Koeberg has a pressurised water reactor design and boasts the largest turbine generators in the Southern Hemisphere. Koeberg ranks amongst the safest of the world’s top ranking PWR’s of its vintage and is the most reliable Eskom power station. The station is also vital for grid stability in the Cape. “One of our key strategic objectives is the continuity and security of supply,” Stott concludes. “That will involve the return to service of three old power stations shut down and placed in cold reserve storage in the 1990s, consideration of the extension of the operating life of existing power stations, including Koeberg, and the construction of new power stations.” END
One of our key strategic objectives is the continuity and security of supply
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C ommitted to ABB South Africa is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact.
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ABB South Africa FEATURE
A
BB is a global leader in power and automation technologies. In South Africa, the group has a strong local presence, offering systems, products and services in the areas of pulp and paper, mining, metals and minerals, cement, chemicals and petrochemicals, as well as manufacturing and consumer industries. Its project capabilities include feasibility studies, project management and design, construction, installation, commissioning and customer training – all of which are supported by field maintenance and asset performance services. “ABB South Africa offers customers a wide range of solutions,” ABB South Africa and subSaharan Africa CEO Carlos Poñe, who recently spoke with South Africa Magazine, says. He added that ABB South Africa offers “complete solutions” to utilities, including electrical power infrastructure for transmission and distribution networks and associated products and systems, such as substations, reactive power compensation, utilities automation, water EPC contracts, power plant automation, power line construction, erection and commissioning. It is a comprehensive offering to say the least. “We enable utility, mine and industry customers to improve their performance while lowering environmental impact,” Poñe says. ABB was established in South Africa in 1992 and employs more than 1,500 people.
ABB’S “GREEN” SHOWPIECE Of course, ABB is a leader in power and automation technologies that “enable utility and industry customers to improve their performance while lowering environmental impact.” ABB South Africa, naturally, has a head office that reflects this. Indeed, ABB South Africa’s headquarters, factory, state-of-the-art manufacturing and logistics centre on an 85,000m2 site at Longmeadow near Modderfontein, www.southafricamag.com 51
ISO 9000: 2008 Accredited pre
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ABB South Africa FEATURE
Sheetech SA
Sheetech SA was established in 1996 with ± 10 employees. We were ISO-SABS Accredited as of the 12 July 2001 and are currently a level 1 BBBEE contributor. Quality manufactured products in the manufacturing and engineeering sector has resulted in an increase our clientele creating with it the need for more space, this is when we secured the two new premises . Facilities include over 20 CNC Machines for different applications from guillotine, punching, and bending as well as 20 press work and welding machines. Our clientele is currently ± 100 including nationally and internationally recognised companies.
We specialise in manufacturing of light and medium precision sheet metal work, that are made to customer specification. Products include electronic components , boxes, brackets and other enclosures/components in the metal, motor and electrical sectors of manufacturing and engineering. In 1998, we established a relationship with ABB South Africa through the manufacture of brackets and then moved on to switchgear panels. In 2000 our relationship with ABB, grew stronger as we jointly ventured into the production of RMU housings that needed to be explosion tested and SABS approved. In 2003 this was succesfully accomplished.In recent years we have begun to supply various departments of ABB in SA from traded products, services, medium voltage (Doors, Gas ducts, RMU Enclosures). We aim to become the RMU Explosion Test preferred supplier to ABB for their metal work in all aspects of their electrical enclosures. On the 2 May 2007, we became a official Training Provider under the MERSETA, training SAQA aligned learnerships and Skills Programmes. We are registered to train Engineering Fabrication; Welding application and practice; Metal and Engineering Manufacturing Processes Level 2–4 and CNC Production Machining Level 2. In 2008, we ventured into a social responsibility programme for the training of the disabled, that is, learners with learnerning difficulties and the deaf/hard of hearing. We are currently doing a Project with the MERSETA for People with disabilities. Our ultimate goal is to expand into other provinces in SA and eventually move into manufacturing and supplying of components for the rest of Africa and other international companies. 54
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Johannesburg, is a shining example of a green building built with the very latest environmental concepts and technology. “The development was completed in less than two years,” says Grant Lewington, the business development manager for the Improvon Group, the firm that built and leases the facility to ABB. “ABB has its headquarters, factory and logistics centre on the site. It cost R500 million and the building incorporates the latest environmental concepts and technology - ABB specifically requested an environmentally friendly facility.” “The Longmeadow building features many green-building elements,” Poñe adds. The cost-effective, energyefficient technologies include a building automation system, power factor correction, drives and high-efficiency motors for the heating, ventilation and cooling systems. “Every workstation is fitted with a photosensitive switch that turns on low-energy lights whenever people arrive and turns them off whenever they leave their desks, for example,” Lewington says. “The insulation in the walls, roof and floor also reduces cooling costs, to give you another example of its green credentials.” Poñe says these measures have significantly reduced energy consumption. “From the outset we took decisions to implement green elements
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Radian Transformers (Pty) Ltd specialise in the design and manufacture of High Power Rectifier, Furnace and Convertor transformers. We also design and manufacture standard and special distribution transformers up to 40MVA. We are proud to be a valued supplier to ABB South Africa. Enquiries: radian@radiantrc.co.za p: +27 16 341 3377 f: +27 16 341 3375 www.radiantrc.co.za
ABB South Africa FEATURE
into the building. ABB South Africa is among the first to put this ethos into practice at significant levels.” Longmeadow reduces energy through use of solar heating, recycling heat from air conditioning motors and extensive use of “grey” water, he explains. The building’s H-shaped architectural structure also lowers energy consumption as it makes use of natural light. On top of that, ABB’s Building Management System is programmed to automate, control and manage all of the energy demands in the building and provides a wide range of control functions, including fire control, security, power monitoring and air conditioning control. “The Longmeadow green building serves as an example of our commitment to South Africa and an example of how ABB’s technologies can reduce energy consumption,” Poñe adds. ABB decided to move all its Gauteng operations to the one at Longmeadow. “It helped us to streamline, reduce costs and to operate more effectively,” Poñe says.
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NEW ORDERS STARTING TO COME IN ABB is currently performing very well and the orders are flooding in. It has recently won an order worth $23 million from Eskom to supply an electrical balance of plant solution for the Ingula Pumped Storage Scheme, currently under construction on the border of the Free State and KwaZulu-Natal provinces. The Ingula plant will have the capacity to generate 1,333MW of hydropower to be integrated into the South African grid, when fully operational in 2014. “ABB South Africa has also won a substation order in Botswana,” Poñe tells us. The deal, with Botswana Power Corporation, will see ABB build the new 400/220 kilovolt (kV) Isang substation, located around 40 km from Gaborone, he says. “This is another example of ABB’s continued success in the region and we are pleased to play our part in the development of Southern Africa’s power infrastructure,” explains Poñe. “This project will help Botswana meet growing power needs,” he adds.
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ABB South Africa FEATURE
In 2008, nearly 80 percent of the electricity supplied in Botswana was imported from neighbouring countries. However, as a result of energy shortages in the region, these countries are reducing electricity transfer to Botswana, leading to power cuts and load shedding. “Emerging market economies have shown stronger demand patterns for power and automation products and services in the wake of the global economic crisis than was the case in more established territories,” says Poñe. “Our order growth accelerated in the third quarter on a combination of continued growth in demand from industrial customers, the mines, and an increase in large power orders. “The situation is improving all the time.”
MINE HOIST ACQUISITION Another significant development at the behemoth that is ABB South Africa is that it recently agreed to acquire the Mine Hoist business of South African manufacturer 58
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Coilmech (Pty) Ltd. The acquisition will expand the company’s product range, its local engineering and manufacturing capabilities and also, in Poñe’s words, “demonstrates ABB’s commitment to local mining market”. Mine hoists are used to transfer materials and people up and down mine shafts. ABB South Africa will add the business to its process automation portfolio for customers in the mining sector, helping the mines to “use energy more efficiently”. “This acquisition forms part of ABB’s strategy to support the mining sector with local manufacturing and demonstrates our commitment to the local market,” Pone says. ”It is a technology the ABB Group does not have. Current and future customers will benefit greatly from ABB’s electrical and mechanical integration capabilities, as well as from ongoing improvements in quality and performance arising from ABB’s far-reaching R&D efforts.” ABB South Africa will expand distribution of these solutions through its India, Middle
East and Africa regional distribution channels and increase the product range, Poñe says. The business will also benefit from ABB South Africa’s black economic empowerment (BBBEE) credentials. ABB South Africa is 20 percent owned by women’s empowerment company WIPHOLD. “The future is bright,” concludes Poñe. “In South Africa and sub-Saharan Africa we see a bright future. Actually, globally, the picture is positive also. People will always use electricity, especially in the developing world, and people will always look at saving energy and better efficiency. The markets where we do our core business are very strong. In developing South Africa and developing sub-Saharan Africa, with developing infrastructures, with a lack of power, with a lack of transmission distribution systems, with new companies coming in, and lots of investment in the industrial and mining industries, we are extremely positive about the future.” END
Engravatec has been been a recognized name in the East Rand engraving industry for over 16 years. And offers the following services: Engraving on materials such as ABS, Aluminium, Brass, Glass, Graflux, Gravoply, Leather, Perspex, Rowmark, Stainless Steel, Trafolyte and Wood. ..... Carry a wide range of Trodat rubber stamps ready for shipment at a moments notice .. . . . . Manufactureres of Lapel badges, Labels, Mimmics, Panels, Plaques and Trophies. ..... Engraves on medals, Corporate gifts, Glasses and a variety of novelty Items. For additional data please feel free call Lesley
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Air and gas handling
powerhouse Howden Africa is a market driven, customer-orientated company. It has gained recognition in Sunday Times Top Companies and is performing brilliantly despite the global recession. Ian Armitage learns more.
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Howden Africa FEATURE
H
owden is a major engineering force. Its equipment underpins the African continent and it has played a significant role in the development of large-scale power generation, mining, construction, petrochemical and manufacturing projects. The firm has enjoyed strong and steady growth - pre-tax profit of R40 million in 2004 has now been transformed into more than R100 million, gaining Howden Africa recognition in Sunday Times Top Companies. You wouldn’t notice many signs of the global recession in Howden Africa’s numbers, surprising given that many clients are mining companies that have had to slash production plans in recent times. “We have long-term relationships with customers in many sectors of Africa’s industrial infrastructure,” says Thomas Bärwald, Executive Director Southern Hemisphere and Chief Executive Officer Howden Africa Holdings Limited, who spoke to South Africa Magazine from Howden’s offices in Australia. “I have responsibility for Howden’s operations in Africa, Australia, South East Asia, and South and Central America. We supply expertise and experience, as well as plant and equipment, across a wide range of applications.” Howden Africa has four main business units offering comprehensive engineered systems and after-market support services, focusing on specific industrial sectors or product ranges. “It enables us to meet the needs of customers,” says Bärwald.
The Howden business units located in Africa are Howden Power, Howden Fan Equipment, Howden Projects and Donkin Fans. Two worldclass manufacturing centres, both located in South Africa, support these units and the Johannesburg operation is equipped to handle a diverse range of large scale engineered plant and products, including the design and fabrication of turnkey projects across the full spectrum of Howden’s customer industries, Bärwald says. “We specialise in the design and engineering of a wide range of equipment and have an extensive offering. We have a good reputation and we are close to the customer. Our customers are all lifetime customers.” Trading items like fans for mines, furnaces and water chillers for power plants, Howden Africa has built up an enviable reputation and offers customers a personal service and presence in Africa, with additional advantages of access to an international network of world-class technological and engineering skill from Howden Group technology in Glasgow. “Our involvement in the past development of Africa’s industrial infrastructure is matched by our commitment to the future,” the company says.
Major industries supplied include power generation, petrochemical, mining, agriculture, construction, refrigeration, water treatment, incineration and general industry
RECESSION? WE HADN’T NOTICED Steel companies and aluminium smelters have been the hardest hit over the last couple of years, as demand - particularly from Europe - has dried up. However, there isn’t much of a sign of the global recession in Howden Africa’s numbers. “It is important to remember that not every industry has slowed down, ” Bärwald says. www.southafricamag.com 61
Howden Africa FEATURE
“Coal and gold mines, for example, have been growing. “Order book levels in the Fans and Heat Exchangers division are strong and platinum is picking up also. “There was a lot of stockpiling of platinum but the automotive industry has eaten into the available supply and so more platinum is needed. The platinum industry, we see, is growing. Then, of course, the SADC is open to us and we are seeing more development, especially in mining and infrastructure in Africa now. We have a strong position there because we have knowledge of African culture and we are already there. We are also
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It is important to remember that not every industry has slowed down…. Coal and gold mines, for example, have been growing
highly innovative and have some very good new products.” It isn’t all plain sailing though and a slowdown in private sector investment has affected the Environmental Control division (Howden Projects), which continues to report a decline in its order book despite a number of promising prospects, Bärwald says. “Eskom’s need for power has provided a major boost to Howden’s order book,” he adds. “A big factor that has helped is Eskom. It needed to commission new power stations and we are involved in Medupi and Kusile.
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Howden Africa FEATURE
Wide Range Engineering Wide Range Engineering has been involved with the Howden Group for the past 21 years in the area of applied technology in the field of Application Engineering. We specialize in rolling bearings and design state of the art solutions to eliminate fan problems and concerns, such as lightly loaded Spherical Roller Bearings, high speed issues, special lubrication applications & special materials being utilized. We also design and supply market standard products. The design and manufacture of our own range of Grease and Oil bath lubricated Dual Bearing Housings to the fan industry has been one of our greatest successes. WRE has supplied Dual Bearing Housings to Australia, Russia & Chile on Howden Designed Fans. WRE products manufactured for the Howden Group give them better reliability on their own products enabling them to concentrate more on their own fan designs. This is due to the ease of compatibility of our products to their range of fans. We have enjoyed a successful 20 year partnership with the Howden Group & look forward to the next 20 years in growing our businesses together.
“We have a reasonable order book for the future, that’s for sure,” Bärwald adds. “Of course, we have just seen the draft Integrated Resource Plan (IRP 2010) published and the government has announced its intentions to focus on a expansion of transportation, energy, housing and other infrastructure, as well as mining and manufacturing. These are good opportunities for us. “We also focus on the aftermarket. Many of our machines are still in the field after 30 to 40 years and they’re still working and need servicing,” Bärwald says.
THE HOWDEN ACADEMY Bärwald has worked with Howden for nearly 20 years. Along the 64
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A big factor that has helped is Eskom. It needed to commission new power stations and we are involved in Medupi and Kusile
way, he has worked in Howden’s Australian business and even headed the Chinese operations for nearly two years. “I was appointed executive director for Africa, Australia, South East Asia, and South and Central America and CEO of Howden Africa Holdings Limited in January 2009, and I’m enjoying it. “Howden worldwide has a presence on every continent and an impressive track record of innovation. To carry that forward we invest in technological R&D, innovation, and the training of our staff. “We have, at the moment, like many other engineering companies around the world, a generation change. We have a lot of people that will retire
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in the next five to 10 years and now the next generation has to take over and we want to maintain good skills. We also ensure that if you are in Europe, North America China, Australia or South Africa or South America, you will get the same quality.” Howden has long recognised the importance of allowing individuals to develop their skills and knowledge to their full potential. In 2008, it took the step of adding a formal dimension to its training capabilities by instituting the Howden Academy, a residential training course at the University of Caledonia in Glasgow in which engineers from all Howden business units are brought together for an introduction to the technologies and business practices. “It builds on the co-operation and shared knowledge that has always distinguished us as a company,” says Bärwald. Every Howden engineer is an integral part of an international pool of leading-edge expertise, he adds. END
wide range engineering
T h e
P l ati n u m
S ta n dard Jane Bordenave finds out about Zimbabweâ&#x20AC;&#x2122;s largest producer of platinum ore and how its investments are benefitting the local community.
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Zimplats FEATURE
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latinum miner Zimplats was founded in 1998 by Delta Gold Limited and is the largest producer of the metal in Zimbabwe. The company was established with the specific purpose of taking control of all Delta Gold’s platinum interests. Since 2001 it has been part of the Implats group, one of the largest platinum mining and processing groups in Africa. The company’s activities are situated entirely on the Great Dyke, which is west of the capital, Harare, in the north east of the country. The Great Dyke has been known as an important source of minerals since 1918, when the presence of Platinum was recorded along with copper and aluminium. The Hartley Complex is one of four geological complexes in the dyke, and Zimplats owns the largest portion of it. It is about 100km long and contains approximately 80 percent of Zimbabwe’s PGM mineral resources. The firm’s main asset is the Ngezi mine complex, which is at the southern end of the Hartley complex. The original opencast mine began production in November 2001 and at its peak produced two million tonnes of ore per annum. In 2003, the business began investigating the potential for underground mining at the site. Having successfully developed a trial mine, it established the first of three underground mines, which reached full capacity in 2006, producing one million tonnes per annum. In 2008 the development of the second of these underground mines began and reached full production of 1.2 million tonnes in 2009. Production from the open-pit was systematically replaced by the development of underground mines and was closed late in 2008. When development of the third mine is completed next year, total production at Ngezi will be 4.2 million tonnes per annum. Development of the Ngezi mines has not been cheap – over the past nine years, Zimplats has invested just under $500 million in the asset, $200 million of which has been in www.southafricamag.com 67
Company name FEATURE
the development of the underground facilities. However, it has been a highly strategic and worthwhile investment: the higher-grade underground mines coupled with increased production have enabled the organisation to reduce costs. The main use of platinum is in catalytic converters to control emissions in the automotive sector and, when automotive sales dropped off, the price of platinum plunged from $2,300 per ounce to $800 per ounce in late 2008. Through strong strategic management and increased output, after-tax profits this year soared to $122 million. Other than investment in the development of assets, the firm has spent a significant amount of capital on infrastructure. In 2001, the company constructed a 77km tarmac highway connecting the mine at Ngezi to the processing
plant at Hartley Platinum Mine. The road only took six months to complete yet it is able to take the weight of 100 tonne trucks travelling over it for 20 hours every day. The firm also invests heavily in CSR initiatives in the local area. Over the past 12 months, Zimplats has spent $10 million on the renovation and construction of schools in the town of Turf, the settlement closest to the mine site. Additionally, in June 2010 the organisation financed the construction of an electricity substation for the national power utility at Selous, at a cost of $25 million. The mines are fully mechanised and employ 2,500 people. All staff particularly the key technical staff, benefit from training offered by the organisation. A further 1,500 jobs are dependent on the
Platinum miner Zimplats was founded in 1998 by Delta Gold Limited and is the largest producer of the metal in Zimbabwe
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operation through suppliers and contractors. Zimplats has initiated an ambitious expansion project. Phase 2, as it is known, which will see production levels increase by an additional two million tonnes per annum from a new underground mine. The capacity of the concentrator at Ngezi will be expanded to four million tonnes per annum. The expansion project is set to cost $500 million and, as well as the improvements at the mine, will also include the construction of 1,125 new employee houses, two schools, a hospital and a 35,000 mega litre dam on the nearby Munyati River. Providers of catering services, spares, vehicle servicing, IT hardware and consumables such as stationery will also benefit from this investment. From boom to downturn and back again, Zimplats has remained an important local economic driver and producer of platinum group metals (PMG’s) for the global platinum market. Through this next level of investment and expansion, it will further cement itself as one of Zimbabwe’s largest and most profitable businesses. END
Reynolds Industrial Supplies are proud to be suppliers of smelter electrode casings for the Zimplats Elkem modular electrode system. We also supply crushing and dense medium separation equipment to the coal, gold, chrome and platinum mines. We offer technical services and a comprehensive spare parts service for rolling mills, process line equipment, smelters and hydraulic cylinders. Agents for: Bradford Cylinders, STech Heavy Engineering (broad spectrum engineering – light to heavy), Ametsa Refractories and Vacohub Lifting Equipment. Tel: (011) 422 4834 Fax (011) 422 4756 E-mail: reyindsup@mweb.co.za
Reward through
t e c h n o l o gy
Chris Boone, one of the founders of Bafotech, a scraper winch company tells Jane Bordenave how it has grown from a twoman operation to be one of the key suppliers to the African mining industry.
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Bafotech (Pty) Ltd FEATURE
W
hen brothers Chris and Frans Boone started Bafotech in 1981, they could hardly have imagined it would become what it is today. From one desk and a couple of chairs in their parents’ dining room, the company now has over 120 employees and owns all its premises and manufacturing equipment. The ‘one stop scraper winch shop’ was originally an equipment reseller, however when the third brother Pat joined Chris and Frans as Operations and Technical Director in 1990, they opened a workshop and began production themselves. The organisation now has four buildings, three in Welkom, Free State, and one in Rustenburg, Northwest Province. Having this fully vertically-integrated supply chains is one of the things that really sets Bafotech apart from the competition. “We are one of the few scraper winch producers in South Africa that have brought all production in house,” says Chris Boone, who works as the Marketing Director for the company. This strategy means it can ensure that its products are of a consistently high quality and deliver good value to its customers. In addition to having its own manufacturing plants, the other element that defines Bafotech is its strong commitment to Black Economic Empowerment. “When BEE legislation came in in 2003, we were dedicated to finding the right partner in order to fulfil our duties,” says Boone, “We took our time to find the right people with whom to enter into a BEE relationship – two years in fact – before finding the right company in Matantabelo Investment Holdings (Pty) Ltd, which is wholly owned by members of the Royal Bafokeng Nation (RBN). Until this point, we had been known as Tech-Kraft but when we entered into this relationship we united the ‘Bafo’ from Royal Bafokeng Nation and ‘Tech’ from Tech-Kraft to become Bafotech. Through Matantabelo Investment Holdings (Pty) Ltd, RBN holds 30 percent of our shares.” At more or less the www.southafricamag.com 71
Bafotech (Pty) Ltd FEATURE
same time, Palesa Rantsoereng acquired 20 percent of the companies shares; through her, the company became 20 percent black-woman owned and overall 50 percent black owned. In relative terms, the recession has been fairly kind to Bafotech, “Mines have curbed a lot of their spending in response to the downturn, as, of course, have we. However our biggest client, Impala Platinum, was in the process of buying a lot of new units, which carried us through the worst of it,” explains Boone. “But we also took a proactive approach, rather than battening down the hatches. We hired another marketing executive in the Rustenburg area, who went out and approached all the small, independent mines. Thanks to his efforts, we now have a lot of small mines on our books and that has helped to fill up the gap in orders and helped us along. We are not growing at the same speed as we were before 2008, but things are beginning to pick up and we are concentrating on keeping everyone happy.” Other than the global economic situation, 72
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the company faces challenges in the form of smaller competitors. “Our market is very tight and there is a lot of competition. Of course these smaller companies do not have the same overheads we do and their focus is often on keeping costs low while keeping profit high. However, our priority is quality, rather than cost – we are sometimes more expensive than other providers, but we believe that, taking into account the guaranteed high quality of our products, we still offer our customers very good value for their money.” In order to maintain levels of quality and improve production, the firm has put in place several technological advances over the past few years, “our main investment has been in Computer Numerical Controlled equipment,” says Boone. “We have purchased machinery that is at the cutting edge of this technology and our shafting, bar feed, machining centre and horizontal machine elements are all completely automated. While some sections of the manufacturing process are still manual, such as vertical lathes, when we replace any equipment
I S O 9 0 0 1
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2538
ENGINEERING SERVICES (Pty) Ltd
3 POWER STREET BOKSBURG EAST 1459 Tel: +27 (11) 914-3320/3 Fax: +27 (11) 914-2423 metalogik@metalogik.co.za
GIC O L D E C N A V AD
Metalogik Engineering Services is firmly established in the Southern Africa market and provide a range of services including General Engineering, manufacturing of scraper winch spares, chroming, grinding, earthmoving equipment repairs, welding, gear cutting and metal spray. With stringent quality controls and pride in our work, we are approved suppliers to a number of major companies including Barloworld and Komatsu.
we only buy new, computerised technology, so we are working towards increased automation. This helps us increase accuracy and quality, while also reducing costs.” As well as investment in equipment, Bafotech invests in its people through training and a strong ethos of internal promotion. “We do a lot of in house training for all our staff and we want to advance everyone in their career,” explains Boone. “If there is a job vacancy within the company that is higher up the ladder, we will look first to our own people. Sometimes we will identify an employee who we feel would work well in the position, but who falls short on one or two things in terms of knowledge or experience. In this case we would send them for training with an outside provider to equip them for the job. When they have completed this course and take on their new role, we will continue train them on the job too. This strategy of continuous professional development helps our personnel to further advance in their careers.”
For the future, Bafotech will be pursuing strong growth, with at least 50 percent increase in turnover. “We are going to be growing in terms of profit, however we do not anticipate a 50 percent rise in terms of staff, as new advances in machinery increase automation,” explains Boone, continuing. “The future is all about modern technology: Through advances in our own products will be able to help mines curb accidents and speed up production. We already work with our customers to upgrade machinery all the time, getting it to work safer and more efficiently, and these are two themes that are very important for everyone.” By to working closely and continuously with its customers, Bafotech has secured a place for itself as a key supplier to the mining industry. By committing themselves to using technological advances to drive growth, improve efficiency and maintain the highest quality standards possibly, the Boone brothers have ensured that their company will be a key player for many years to come. END www.southafricamag.com 73
begbie seeks
sustainable
future The economic crisis has clearly hit a number of industries and territories. How has Thos Begbie been impacted? Joint chief executive Eugene Rossouw talks candidly about how the firm is fighting to retain market share.
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Thos Begbie FEATURE
O
riginally founded in 1887 in Johannesburg, Thos Begbie has been serving the mining and smelting-relating industries from its plant in the Mpumalanga Province for over 120 years. The company was nationalised by the Boer Republic to make weapons to fight the British. At the end of the Boer War, it relocated to its current site at Middleberg, where it has operated since 1906. Today its main customers include Hatch, Tenova Pyromet, Bateman, Siemag, Anglo Platinum, Impala Platinum, BHP and Xstrata. The business has recently and is currently undergoing changes. It sold a portion of the firm to Jubilee Platinum PLC.
FIGHTING THE DOWNTURN “The economic crisis has had an impact on our business, we have seen some orders being suspended and projects put on hold as a direct consequence of the commodity crash,” says joint chief executive Eugene Rossouw. “The timing was, however, later than that experienced by other industries as a result of the long cycle in the specific market sector we service. “The recovery, similarly, has occurred later than that of other industries,” he continues. “We are only now, after the commodity prices have started to improve, begun to see projects and development being re-evaluated. The decision process, however, seems to be slower as a result of hesitancy in committing to new projects; some investors seem to still be smarting from the commodity crash.” The Rand strength hasn’t helped either. “It, in particular, has resulted in our prices to our customers in their currency being higher than that when the currency was at previous levels,” Rossouw says. “This has resulted in us facing price pressure when competing for business. We have endured significant cost increases on the value added side and sales values decreased on the revenue side. This has put pressure on our bottom line.” www.southafricamag.com 75
Thos Begbie FEATURE
Thos Begbie, he says, is currently evaluating all areas of costs to remain competitive, globally. “The sale of our Special Metals division to Jubilee Platinum PLC, it came about as a result of our inability to make the investments necessary to get the business to its optimal scale of operation,” Rossouw explains. “The crash in the commodity prices resulted in losses in the business. Jubilee identified the synergy that the operation had with their development plans. The operation offered them the opportunity to fast track their own expansion plan.”
RESTRUCTURED AND REPURPOSED The restructured Thos Begbie Group is currently operating at “lower levels than that of 24 months ago,” Rossouw adds. “Two of the operations have been negatively affected by the current indecision in the transaction of business by the Rail Transport projects,” he says. The delay in the roll out of some electricity transmission infrastructure projects has also had an impact. “The restructure of the Thos Begbie Group was necessitated by the restructure of the legal entities to be able to give
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effect to the Jubilee transaction,” Rossouw explains. “The restructure has also enabled us to clearly identify our own business strategy for the future. “Commodity prices have in some areas returned to prices seen prior to the price crash. Other commodities have languished at lower levels,” he continues. “Market demands of specific commodities have seen some changes with positive effect on that commodity. Other materials prices have not recovered to the full extent as needed by the producers. Generally there has been some recovery of prices.”
RETAINING MARKET SHARE Fighting to retain market share is the big challenge. “As expressed, the current comparative strength of the Rand against the major currencies results in lower prices for products exported and negatively impacts on the competitiveness of businesses engaged in the export markets,” says Rossouw. “Something has to be done to enable the exporters to remain competitive and ensure that imported product prices remain fair and do not result in excessive inflationary price
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Thos Begbie FEATURE
increases. The balance between the production costs and consumption increases in prices as a result of a weaker currency may result in an increase in import prices and lead to further pressure on the manufacturing sector.” He believes the “real effect” of the stronger rand will be higher unemployment and a further reduction in the number of people engaged in the production export industries. ”The current state of the industry is one of hanging in, with the anticipation that economic fundamentals will prevail and there will be a recovery in the business opportunities,” Rossouw explains. “The current situation is forcing the industry to take stock and develop a survival strategy. Jobs have been lost, they will not easily be recovered.” 78
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COMMITTED TO QUALITY Thos Begbie is carefully evaluating the business with the view that it will continue to offer a superior service and offer products at competitive price, Rossouw says. “As a reliable supplier with a strong customer focus, we believe that despite our prices being slightly less attractive, our customers will value our commitment and track record and not only measure us against our prices. “We do have plans for the future but the current situation has resulted in them being put on the back burner.” The goal is to deliver a quality product, consistently on time and at a competitive price, and become the preferred supplier of all the equipment it makes. END
FOSECO FOSECOISISA A PROUD PROUDSUPPLIER SUPPLIER TO TOTHOMAS THOMASBEGBIE BEGBIE
oiling the
k n o w l e d g e
machine
With the industry changing rapidly, Ian Armitage looks at how this market-leading lubricant manufacturer is adapting with it.
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Fuchs Lubricants SA FEATURE
A
s a relative newcomer to the South African lubricants industry, today in competition with major oil companies, Fuchs Lubricants SA, a member of the worldwide Fuchs Lubricants group, believes that its specialised product and reliable customer service are the reasons for its success and continued growth. “As you say, we are a subsidiary of FUCHS PETROLUB AG, one of the world’s largest manufacturers of lubricants, with manufacturing and marketing companies worldwide,” explains Willie Stoltz. “Our local success is therefore supported by an extensive range of core lubricants, with tailor-made solutions for various niche markets.” Fuchs Lubricants SA specialises in “three main areas of lubrication” - automotive, mining and industrial, he adds. “Our products and services are continually evaluated and updated depending on the demands of industry. As far as Fuchs South Africa is concerned we are trading with sales well ahead of last year. In terms of profit margins, the industry has however been hit by escalating costs of raw materials.” Stoltz says the extra demand is from new business, namely “a couple of projects that we picked up towards the middle of last year”. “We can say that industrial and mining, particularly platinum mining, has picked up a lot over 2009.” Throughout the world, Fuchs’ specialised mining lubricants are market leaders in their various fields. The Ceplattyn range of open gear greases are approved on mills and crushers throughout the industry and its fire resistant hydraulic fluids, and rope dressings are also widely used. In response to the excellent growth off the back of such products, Stoltz reports that Fuchs Lubricants SA is “expanding operations” at its headquarters in Isando, on the East Rand. “We have recently purchased a new property across the road to this building to move the warehousing, sales and distribution operations into,” he says. “We are growing and expanding; it is just going all guns.” www.southafricamag.com 81
Fuchs Lubricants SA FEATURE
RISING COSTS The industry has been hard hit by escalating costs of raw materials, which have eroded profit margins extensively. As a means to keep costs under control, the company has implemented a number of innovative “cost-saving methods”, like using its product performance development to help customers cut their cost of operation. “South Africa is a growing market and we will continue to develop new products,” Stoltz says. “What has worked in our favour in recent times is the strong rand,” he adds. “The rand has been good for us and has helped us tremendously. We import quite a bit from our mother company in terms of finished product and in terms of concentrates. So, the strength of the rand helps us here. In terms of our external suppliers, it has helped also, but there was still an overall increase in many raw materials.” According to Stoltz, Fuchs Lubricants SA is a “top performer”, which has “not been 82
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affected” by the effects of the recession in the way many subsidiaries have. “In 2009 we didn’t see the recession in SA. We had a tremendous year – because of new business and new projects picked up. So for us it wasn’t a bad year. It was tougher for the parent and all sister companies across the globe from what we have heard. “Why has SA been performing better? It was strange to us. We – Fuchs Lubricants SA – couldn’t really make out what it was. We haven’t got answers for it, apart from the projects we picked up.” That said he believes the firm’s diversity has played some part. “Because we are diverse, we spread risk. There was a definite downturn in mining in 2008/09 where a lot of the milling plants were closed for some time and only started operating again in July/August 2009. Remember, our products and services are continually evaluated and updated depending on the demands of industry and that is our strength.”
M
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Tel: +27(0)31 576-0600 Fax: +27(0)31 576-0620 Web: www.unichem.co.za
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ExxonMobil Chemical Synthetics ExxonMobil full range of Synthetic Basestocks
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FMC Lithium
Jindui Cheng (JDC) China
Full range of Industrial and Grease Additive packages, Sulfurized products & components.
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CONSERVATIVE GROWTH and A SKILLS SHORTAGE In terms of future growth, Fuchs Lubricants SA has put its 2011 target down to single-digit percentages“just to be conservative”. “It will most probably be a year of consolidation. We are looking at some new projects that we want to kick off in the New Year but they are medium to long-term projects. So 2011, although we have plans for it, whether some of them will come to fruition in the year is a bit doubtful. But, we are expanding.” Stoltz is concerned about the impact that skills shortages in the sector will have in the near future. “It is a challenge, particularly in technical positions,” he points out, adding that in-house training is one way it is trying to “deal with” the skills challenge. “The correct technical skills in the right areas will, in the near future, become extremely scarce,” Stoltz says, adding that, to advance skills development, the company is initiating a programme aimed at training
tertiary-level students over the next few years. “All that said, we are looking forward,” he continues. “Our key strength is – in the oil industry – that we focus on lubricants. We don’t do fuel or refining, and we have specialised niches in the lubrications market; the majors don’t have that. We are lean and mean. We have the expertise and we are flexible. Our service to our customers is very good and we virtually have 24/7 delivery. “We will continue to bring out innovative products in the future and are currently focusing on the automotive market in terms of high spec engine oils. We are also focusing in the metal working industry, OEMs, and we are looking at opencast mining, where we want to bring in new technology. “We are always looking at new niches and areas where we can bring in specialised products.” FUCHS has just acquired the global food-grade lubricants business of SHELL to strengthen its own activities in that highly specialised field. END www.southafricamag.com 83
BUILDING the
CAP E
Paarl construction company J Van Der Sluys is celebrating its halfcentury in the building industry with the completion of some iconic projects and a major rebranding, as Managing Director, Jandre Arangies explained to John Oâ&#x20AC;&#x2122;Hanlon 84
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J van der Sluys (Pty) Ltd FEATURE
I
t is only 50 years since the late Jan van der Sluys (a couple of years after moving from Holland to South Africa) set up the company that bears his name. Later this year, a book will be published celebrating the remarkable growth of a major construction company that has changed the face of Cape Town and its surrounding areas. It also marks the beginning of a new era, as this year also saw the transfer of the last of the Van der Sluys shareholding to Managing Director, Jandre Arangies, Commercial Director, Human Naudé, Contract Director, Jacques Wilken and Tenders and Estimating Director, Weyers Willemse, each of whom now own 25 percent of the equity. The team, while they are determined to modernise and expand the company, is united in its desire to preserve the strengths of the business. “Our people are the most important asset to us,” says Arangies. “My vision for the company is to keep growing to our full potential on the strong foundations we have inherited, but also to keep the family ethic that has grown over the years.” So, as well as looking at our past with gratitude, the golden jubilee book will launch the image and brand of Isipani Construction, a new name for the company, but reflecting a philosophy that has always been in place. Isipani means ‘teamwork’ in Xhosa and it is a concept that was always fostered to empower and include the workforce. Over the next two years, the original name will be phased out, as clients and investors become familiar with Isipani Construction (Pty) Ltd. There will be no radical change of direction though: “We have a strong track record in the industrial, commercial, residential and retail markets and we will keep our focus on these
sectors,” says Arangies. However, a glance at its recent portfolio shows that J van der Sluys (Pty) Ltd has built numerous schools and colleges in the Western Cape: currently it is completing a number of projects on the University of Stellenbosch campus. At present, with credit at a premium and private investors holding back on construction work, Isipani Construction (Pty) Ltd will be focusing its tendering policy increasingly on government work and attempting to capture some of the larger school and hospital projects. To this end, it is likely that the company will be targeting this work as part of joint ventures, something it has not tended to do previously. Hibernian Towers was one of the most outstanding buildings ever conceived for the Boland, the brainchild of the wealthy Irish entrepreneur, Xavier McAuliffe. J van der Sluys (Pty) Ltd completed the R178 million project towards the end of 2009. The project consists of a 23-storey building that dominates the ultra-smart Strand Beachfront and combines shops, offices and 85 luxury apartments, as well as a four-level parking area, a heated indoor swimming pool, a sauna and a gym. The project was far from straightforward: with over 325 anchoring piles, 25000 cubic metres of concrete and 1500 tonnes of reinforcing steel, the construction process was a considerable challenge when it’s considered that the whole building had to be earthquake-resistant. Nevertheless, with 50 years’ experience and accumulated knowledge, as well as a first class reputation among the architects and consultancy firms has kept J van der Sluys (Pty) Ltd in the driving seat. A major work in
My vision for the company is to keep growing to our full potential ... but also to keep the family ethic that has grown over the years
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J van der Sluys (Pty) Ltd FEATURE
progress is the Queen Victoria Hotel, a luxury hotel being created from a former office block. “It’s a complete revamp of the existing building on the Victoria & Alfred Waterfront, one of the best addresses in Cape Town,” explains Jandre Arangies. “We have stripped the building bare and are turning it into a five star hotel, with 37 rooms and a 30-seater restaurant overlooking the Bay.” Arangies would very much like to see the company extend its footprint beyond the Western Cape into the rest of South Africa, and eventually into other African countries as well. One way this might be done is through its existing association with expanding corporate clients such as Medi-Clinic, Southern Africa and the Shoprite Checkers Group. J van der Sluys (Pty) Ltd completed a R7.5 million retail and office building for the latter client in Northern Paarl in 2005: currently it is on the point of handing over a much larger complex for Checkers in Hermanus, 100 kilometres south-east of Cape Town. “This is a R134 million project, one of the biggest and most successful we have done,” says Arangies. “Everyone has put in enormous effort to get it done on schedule and it has brought us very positive feedback and valuable exposure: we see it as the way to greater things with the 86
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Shoprite Checkers Group, as well as all the consultants that were involved on the project.” The multi-storey complex consists of 8,000 square metres of shops and offices, 4,000 square metres of luxury apartments and a 10,000 square metre basement parking area. J van der Sluys (Pty) Ltd has always valued its workforce above all, and Jandre Arangies is keenly aware that personnel development will be the best way the company can continue to recruit the best people and hold on to them. He is certainly their best role model: he has been with the company for 18 years, having joined as an intern during his college days at Cape Town Technicon (as Cape Town University of Technology was then called). “There are very few training facilities for the building industry in South Africa, and we see that as a big gap. But we do concentrate on in-house training and skills transfer. The company runs an innovative programme at its training centre, whereby experienced employees transfer trade skills to newer recruits and are rewarded for every successful candidate they mentor. As part of the ongoing strategy an “employee share ownership” will be introduced at Isipani Construction (Pty) Ltd giving employees a real stake in the success of the company. END
Telephone: +27 (0) 82 852 3877 (Cape Town) Fax Number: +27 (0) 86 666 4911
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Christensen Tools FEATURE
The right tools
f o r t he j o b Jane Bordenave speaks to John Christensen about his family business and its dedication to good quality products with a personal touch.
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Christensen Tools FEATURE
J
ohn Christensen, late grandfather of the current director also named John, founded Johannesburg-based Christensen Tools in 1965. The firm provides specialist tools and equipment to companies and professionals working in the production, maintenance and repair of electronic goods. With offices in Cape Town and Durban, as well as Johannesburg, it is able to offer a comprehensive service to its numerous clients throughout the country. The organisation has a very diverse customer base, covering everyone from independent television repairmen to cell phone network providers. “Our focus is with the professional market, whether that is the actual production and manufacture of new equipment or carrying out repairs, or both,” says Christensen. “For example, one of our clients makes satellite decoders, using our tools right from the beginning of production. On the other hand, we have another customer who maintains telephone masts.” What has made the company so popular and has provided its continued success over the past 45 years is its commitment to customer satisfaction. “We pride ourselves in providing quality products to our clients,” Christensen explains, enthusiastically. “We do a lot of research, both on the internet and by visiting expositions and tradeshows in Europe, to ensure our customers get the best.” Durability is also very important to both Christensen Tools and its clients: “Sometimes I speak to customers who tell me that they bought their toolbox back in 1987 and it is all still in full working order. While we haven’t made repeat sales from that particular customer on that particular product, the good name we get from it and word of mouth recommendation is publicity that you just can’t buy – good customer relations and a good reputation are invaluable.” While tools from the company are undoubtedly more expensive than some that could be picked up in a hardware store, this durability pays for itself. “To explain the value of our goods I give www.southafricamag.com 89
Christensen Tools FEATURE
my team this example – if a Vodacom engineer is fixing a telephone mast and his pliers break, how much will it cost the company in dropped calls and unhappy customers? The reliability of our tools saves our customers money over the long term and is one of our defining features.” In order to ensure that its customers get the best deal, it is important for the organisation to effectively manage its supply chain. However, supply agreements also have the personal touch that permeates this business. “A lot of our supply contracts were established by my grandfather and represent a handshake between businessmen that has lasted for over 20 years,” says Christensen. “We keep that philosophy now – it is important for us that we know our suppliers as friends as well as business partners. During the World Cup, the managing director of Carl Kammerling International
visited us and while we did speak about business, we also spoke as friends.” This close relationship with its suppliers allows Christensen Tools to secure orders despite the comparably small size of this market. “While South Africa is geographically huge, there are only 50 million people living here,” explains Christensen. “On top of that, the general population is not as affluent as in Europe or America, so our market is, in relative terms, really very small. Consequently, as most of our suppliers are either European or American, when we put in an order that is large in South African terms, it’s seen to be quite small in their eyes. But, as we have an excellent relationship with these companies, we are not side lined despite the size of our request.”
We pride ourselves in providing quality products to our clients
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Dedication to its staff is equally important. Christensen himself learnt his trade under the guidance of his father and grandfather and he is eager that his employees receive similar benefits. Personnel are offered various types of training all the way through their career at the company. Those at entry level are offered general basic training and, as they progress up the career ladder, training becomes more specific and focussed on the person’s particular role and talents. “We give training to our employees all the way through their time with us in order to empower; there’s nothing worse than having people beholden to you to show them how to do things. You have to give them the tools and freedom to do that for them selves, which is a very important thing for us to impart to them.” In addition to training, the company offers contributions based health insurance (Medical aid) and pension scheme. When it comes to corporate and social responsibility, the organisation is very proud of its Broad-Based Black Economic
Empowerment certification. “We have been accredited as a BEE supplier by an accreditation agency and we take pride in the fact that it shows our level of contribution not only to the company but also to the country. It is not just about having black shareholders or black managers, it is about making a positive contribution to the country” When asked about the future of Christensen Tools, Christensen sees its continued prosperity as more than just good business practice. “45 years ago my grandfather started this business in a double garage in a residential area of Johannesburg. Now we have four offices and many thousand clients. When I drive up to my office in the morning and see our name on the side of the building, that means something to me and it’s part of my family. We are providing people with something useful, which will benefit many. Christensen tools is something that I am proud of and so I would like it to grow while still maintaining the values that are the core of our business.” END www.southafricamag.com 91
drugs
G eneric
the key to affordable , universal healthcare ?
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Do generic drugs hold the key to affordable, universal healthcare? Ian Armitage talks to NAPM Chairman Dr Skhumbuzo Ngozwana to find an answer.
NAPM FEATURE
T
he past few years have borne witness to huge change within the South African pharmaceuticals industry and the health sector has experienced fast-paced change – from an increasing infectious disease burden driven by HIV/AIDS and TB, new medical developments and technologies to legislative acts and regulatory policies that define how medicine is practiced. South Africa has one of the highest rates of HIV/AIDS infections in the world and just over 10 percent of the entire population is affected. The market for antiretroviral (ARV) drugs looks set to grow and the government has proposed a National Health Insurance (NHI) scheme, which aims to provide healthcare for all South Africans. This is expected to come into effect by 2012 and will be phased in over a 14-year period. “Government policy is to provide affordable universal healthcare coverage to all South Africans and ensure a reliable supply of safe, efficacious costeffective drugs of acceptable quality,” says Dr Skhumbuzo Ngozwana, the Chairman of the National Association of Pharmaceutical Manufacturers (NAPM). “Health is a major challenge for Africa where HIV/AIDS, TB and malaria, in particular, kill millions of people each year. Many deaths could be prevented with timely access to appropriate and affordable medicines.” Ngozwana says generics have a particularly important role to play in increasing access and addressing the high burden of disease. He aims to grow the generic medication market share in South Africa and also intends focusing on increasing the NAPM’s membership and strengthening
the association’s links with other international generic medicine associations. “In recent years, there have been fundamental changes and an increase in generic acceptance, hence we are seeing an increase in generic substitution – this is however nowhere near the acceptance in more developed markets like the US and parts of Europe. There is scope for more generic usage and growth in South Africa and the rest of the continent,” Ngozwana says. Generics have overtaken branded pharmaceuticals in terms of market volume and this trend is expected to continue, taking into account that the demand for cheaper essential drugs. “A generic drug is a bioequivalent of an innovator drug,” explains Ngozwana. “Generics are exactly the same as their branded counterparts in dosage form, safety, strength, route of administration, quality, performance characteristics and intended use. The difference between the two is the price. Generic drug manufacturers incur fewer costs, as they do not have to recover the costs related to original research and development, or the lengthy clinical trials required for registration. Thus generic companies are able to make the drug at a much lower cost.” Pharmaceutical companies argue that generics competition reduces the amount of money they can spend on research and developing new drugs. In order for the proprietary drug makers to recoup the money they spent on drug creation, they are granted a patent, which typically lasts for 20 years. “Legislation is in place and guarantees innovator companies a 20-year exclusivity – after which generics can enter the market,” says Ngozwana,
We aim to create a sustainable and viable local and generic pharmaceutical industry in the SADC
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NAPM FEATURE
NAPM members are manufacturers and suppliers of drugs, mainly generics in South Africa. They include: Abex Pharmaceutica Arrowpharma Aurobindo Austell Laboratories Be-tabs Pharmaceuticals Bodene CAPS Pharmaceuticals Ciplamedpro Columbia Pharmaceuticals DI Medicine Regulatory Consultants Dr Reddy’s Laboratories Pty Ltd Ferring Pharmaceuticals Litha Healthcare MC Pharma Medreich SA Mylan Generics Pharma Dynamics Ranbaxy SA Sandoz SA Sekpharma Teva Pharmaceuticals Thebe Medicare Zydus “Generics cost a lot less and greatly increase access to healthcare,” he stresses. “Look at AIDS. In 1996, HAART - an effective combination therapy that delays the onset of AIDS - became available. The treatment cost $10,000-15,000 per person per year, which was far too expensive for people in the developing world; the price of the drugs clearly needed to come down to an affordable level. That has happened through generic entry and competition. As more generics enter the market, competition increases, placing pressure on both the originator and generic segments of the market, resulting in prices that are more affordable to patients” 94
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Indeed, in 2001 Indian generic drug manufacturer Cipla announced that it would sell a generic copy of a triple-therapy antiretroviral for $350 per patient per year. This had an incredible impact and the competition this generated dramatically drove down the price of anti-AIDS drugs for developing countries, increasing the range of affordable options for national treatment programmes. “The price of antiretrovirals for low- and middle-income countries has continued to fall,” says Ngozwana. “Strict budgets are in place and that can limit treatment. We are the champions of affordable healthcare and also continue to inform healthcare professionals and patients on available options. “The market is very competitive globally. In order to increase their competitiveness, major players have pursued the acquisition trail. Significant domestic suppliers have been the targets. We have seen a lot of consolidation. Innovator companies have also moved R&D or production to overseas centres of excellence, and this resulted in the closure of manufacturing facilities in South Africa (and other markets),” Ngozwana adds. “There are moves to harmonise drug registration in the Southern African Development Community (SADC), which is an important development and one we support,” he continues. “To this end we have seen the formation and inauguration of the Southern African Generic Medicines Association (SAGMA), an important development for the future of generic medicines in SADC and its 15 member states. The Mission of SAGMA is to achieve self-sufficiency and reliability in the local production and/or promotion of affordable, efficacious, quality generic medicines in the SADC region. This initiative has been sponsored by the UN Industrial Development Organisation and spearheaded by NAPM together with active participation from other SADC member countries.”
Composite
According to Dr Ngozwana, the chairman of SAGMA, it would enable SADC countries to work together on issues of common business, scientific and technical interest and assist in making medicines more affordable and accessible to patients in the region. “We aim to create a sustainable and viable local and generic pharmaceutical industry in SADC. “NAPM, established in 1977, is a trade association whose vision is to champion affordable healthcare by promoting generics. By increasing the supply of generics and promoting the market as a whole, the NAPM also assists the Government in its policy of making medicines more affordable and more accessible to all South Africans.” The Government wants to back the local industry, Dr Ngozwana stresses, but could be tempted to procure more drugs from countries like India and China, which can provide drugs at a lower price than local companies. END
D.I. Medicine Regulatory Consultants
PROFESSIONAL PROMPT COST-EFFECTIVE QUALITY REGULATORY SERVICES D.I. Medicine Regulatory Consultants has been serving the pharmaceutical industry for the past 18 years and offers a complete range of medicine regulatory services. Contact Details: 018 297 4072 082 551 7213 (Isabel Oliver – CEO) www.diconsultants.co.za
“heating up”
South Africa
Sexpo is Africa’s largest health, sexuality and lifestyle expo and it is causing quite a stir. Ian Armitage learns more
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Sexpo FEATURE
I
t’s the only event of its kind on the continent. Sexpo has set up shop in South Africa, bringing a staggering array of films, accessories, and vigorous sexual debate to the country. “Sexpo is Africa’s only major fair dedicated to sex,” says Sarah Howarth, sales director at Sexpo, who, in a previous incarnation, was involved in the formation of Sugar Bay, a popular camp for children - far removed from her current job. “I love working here,” she adds. “We are the world’s largest adult sexuality, health and lifestyle exhibition and we delighted that we have successfully brought the event to Africa.” The traditional laws of the rainbow national are in a state of flux. Both gay marriage and polygamy are legal, but sex is not widely discussed and that has something to do with our culture and the way we were raised. “South Africa has certainly become more liberal,” says Howarth. “South African sexuality is really coming into its own. We are moving towards a liberal, responsible and sensually expressive society.” As recently as 18 years ago, you would have been arrested for daring to smuggle a pornographic magazine into the country or locked up for expressing your sexual preference. The change is remarkable. “We have come a long way and it’s time to celebrate,” says Howarth.
“Sexpo is a way of breaking down barriers,” says Howarth. “If you educate and talk about sex in a fun and open way, that is when people start listening.” The problem in South Africa is education and access to information. “We raise issues around sexuality in a light-hearted way and we have workshops that host fun and informative seminars where you can gain valuable health information. We hope it will at least get South African’s talking,” says Howarth. “There used to be a bit of a taboo about Sexpo, with people asking ‘what is it all about?’ It is about sexuality and lifestyle as opposed to a sexshow and the market understands that.” The event is great for the economy too and it brings in a lot of visitors – an added bonus.
Sexpo is a way of breaking down barriers.... If you educate and talk about sex in a fun and open way, that is when people start listening
A SEXUAL EDUCATION South Africa certainly has progressive laws and things are improving, but it still has its taboo subjects – many think the fact we can’t openly talk about sex has had a negative impact on the fight against aids in a country where one in five people is affected the illness.
GUARANTEED SIZZLE
The annual South African Sexpo events are the hottest parties to hit our shores. Sexpo Joburg 2010 was held at the Gallagher Convention Centre, Midrand between 30 September and 3 October 2010. And it was a huge success. “We had a wide variety of adult entertainment on offer and over 180 exhibitors showcasing a wide array of products and services,” says Howarth. “Sexpo is the largest exhibition of its kind in the world. We do Sexpo Joburg, Durban and Cape Town. Next year we will be doing Bloemfontein as well and possibly going up to Namibia.” Joburg’s four-day fun fiesta was packed with non-stop stage entertainment including comedian John Vlismas, Miss Nude Australia Suzie Q, hot and hunky male www.southafricamag.com 97
Sexpo FEATURE
dancers, Pricasso the penile artist, Miss Pole Dance UK Tracey Simmonds, international adult movie stars, hypnotist Alain The Great, lingerie fashion shows, a world-famous Amateur Strip Competition and much more. “The response to Sexpo from the South African market has been beyond belief. It is nearly as popular as Sexpo Australia and it has only been running four years. We had over 50,000 people through the doors at the Joburg show,” says Howarth. “Sexpo is the ultimate adult experience, offering something for everyone,” she continues. “You can meet international industry stars, watch the hottest stage shows, learn to pole dance and win prizes.” 98
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In fact, there isn’t much you can’t do. And it is all in the name of fun.
NEXT UP CAPE TOWN Sexpo will be at the CTICC in Cape Town between 25 and 28 November. 30,000 visitors are expected. “Miss Nude Australia Arianna Starr will serve as event master of ceremonies and we are bringing in the biggest names in the adult world. Sexpo has basically legitimised the adult industry in South Africa and shown that it is sexy and fun and not sleazy. “At the Cape Town show we also have the Ladies’ Lounge, where you can be entertained by local and international hunks and we have
House of condoms House of condoms works with Sexpo to make the show as successful as possible. Our goal is to bring and display the latest and greatest toys, lubrication, and any sex related products. House of condoms always has a very bright stand, that you will never miss when browsing the show. House of condoms staff is also extremely knowledgeable on all the products that are on the stand, and are always there to answer any question that you might have. See us next time at your next sexpo, or view our collection online at
www.houseofcondoms.co.za
Jesse Jane, probably one of the most famous Pornstars, coming over from the US. There is so much to do at the show and something new every day.” Each Sexpo embraces the new and provides variety. It means people keep coming back. “The variety is superb and the nice thing is that you have different events on different days so you have people coming for more than one day,” says Howarth. “They come on the Thursday, for instance, see there is something they really want to see on the Saturday night and they come back again on the Saturday. “I would encourage your readers to come along!” she explains. 100 www.southafricamag.com
FUTURE EXPANSION Sexpo organisers are looking to expand into Europe and the US, Howarth adds. She believes the adult lifestyle exhibition has the potential to become a truly iconic brand, globally. “It has become extremely popular, particularly here in South Africa and obviously Australia,” Howarth says. “We think there is a lot of potential for Sexpo. We have all the ingredients.” Now in its 14th year in Australia, and fourth in South Africa, Sexpo attracted over 250,000 people to its exhibitions across Australia and in South Africa in 2009.
Sexpo FEATURE
We are the world’s largest adult sexuality, health and lifestyle exhibition and we delighted that we have successfully brought the event to Africa
Additional exhibitions are planned for New Zealand and London in 2011. “We are getting a lot of demand,” Howarth says. “About 80 percent of the group’s revenue comes from Sexpo shows.” Sexpo Cape Town runs from November 25 to 28. Be sure to book your place online at www.computicket.com and avoid the queues. “We advise people you use computicket to avoid the queues,” Howarth concludes. “At the Joburg show queues were over a kilometre long!” Remember Sexpo is strictly 18. END www.southafricamag.com 101
R iding out the
s t o rm Tough times are times to get creative, says Andrea Protti, marketing director of RAP International.
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RAP Products International FEATURE
P
rimary packaging suppliers to the cosmetic, toiletry, pharmaceutical, food, beverage and household industries, RAP Products International has quite the history. Formed in 1988 as a specialised pump company by two ambitious brothers, it has certainly come a long way since. “RAP was formed in 1988 supplying SAR pumps. That company subsequently became EMSAR,” says Andrea Protti, marketing director. “The company was founded by me and my brother Rino – the name comes from our initials: Rino, Andrea, Protti… RAP. “Why did we form the business? We recognised the potential for a mediumsized niche player in the packaging industry and went for it. We have subsequently progressed to a full spectrum of primary packaging and now supply a number of industries. “How has that happened? Well the growth came from evolution more than design. It evolved by virtue of adding new lines and ranges: we started with pumps, we then moved to glass bottles, then perfumery glass bottles, and then plastic blow-moulded bottles, which we did ourselves. During that time, injection moulding came to pass to make the components for the actual pumps we were selling and that is really how it has evolved.” RAP today offers a “one-stop shopping opportunity” for all packaging, he says. “We draw on both imported and locally produced products, which compliment each other.”
its acquisition of RAP for R14.7 million. “The acquisition provided additional stability to the Beige portfolio and built economies of scale,” says Protti. “It improved our position and made us into the one-stop shop. “Basically, what happened was that Beige already had a company, a section of their company, which was a plastics division. And we fitted well in that niche.” That division is Crystal Pack. “By joining the two companies together we created an added value…. Primarily, RAP was in a plastics environment for cosmetics and toiletries. But adding Crystal Pack it brought in food and beverage and industrial type products. So we expanded that possibility. The other aspect is that we were just a much bigger company and a much bigger force to be reckoned with.”
We have done an enormous amount of work in the development of new products, ideas and designs of packaging
BEIGE ACQUIRES 100% STAKE A significant milestone for RAP came in 2008 when homecare products manufacturer Beige Holdings announced it had concluded
RECESSION COMES CALLING
Of course, soon after the acquisition, the credit crunch struck. The resulting recession has had a big impact on RAP. “The global recession has left no room for complacency,” says Protti, who can see positives in the resulting changes to the industry. “We decided to follow the mantra ‘When the going gets tough, the tough get going.’” He says the worst thing RAP could have done is assumed it was a case of ‘business as usual’ or started slashing prices. “Successful companies and brands rest on competitive service, quality and differentiation; on captivating consumers,” Protti explains. “Price-cutting in a recession, in my opinion, is a losing strategy. At RAP Products International, instead of cutting back on ‘easy targets’ like marketing and R&D, we did the very opposite and continued to invest www.southafricamag.com 103
RAP Products International FEATURE
heavily in both. Even today we continue to invest substantially in prototype designs and innovation and it is a strategy, I think, that is working and will continue to pay dividends.”
SIGNS OF IMPROVEMENT
We draw on both imported and locally produced products, which compliment each other
2009 was a tough year and the effects on the packaging industry are well documented. Things have improved slightly in 2010, but not massively. “The trading environment is still very tough,” says Protti. “It is dog-eat-dog. The smallest price change can lose you a contract in the blink of an eye and customers are buying less, at the last minute.” 104 www.southafricamag.com
He says end-users do not want to carry too much stock and are utilising J-I-T. “They want us to manufacture the product and put it in their stores in time for them to just sell it. Sometimes that is a very difficult task to achieve, getting that timing absolutely right.” How is RAP coping with those demands? “We have geared ourselves towards the smaller companies, being able to provide a smaller quantity at sometimes higher prices,” says Protti. Clients are currently looking for lighter packaging, reusable packaging, fun packaging, noticeable packaging and convenient packaging too, he
Bottle Printers of SA is a plastic and glass decorating company based in Gauteng, South Africa. The company was started by Bruce Altria in 1991 in his garage and has grown over the past 19 years to a successful business, with two factories, one of which specialises in printing onto plastic products and the other onto glass. Our glass division is based in Bramley View and prints onto glassware, beverage and cosmetic bottles using high stove and organic inks. As well as “frosting” glass products and sleeving plastic, metal and glass containers. Our Plastic division pad prints, Silkscreen’s and foils onto any form of plastic product (buckets, water bottles, lunch boxes etc etc.) We can pad print or silkscreen between 1 – 6 colours per product Tel: ( 011 ) 466 1390 Fax: ( 011 ) 466 1388 / 466 1394 botprint@global.co.za www.bottleprintersofsa.co.za
adds. Value engineering is becoming more important as well. “Of course we haven’t cut R&D so we are able to do this and react to trends,” Protti explains. “The minute you start cutting in those areas, you are cutting the potential of your business. Without the logs on the fire you lose the momentum of the company and you lose the potential of picking up business.”
FUTURE GROWTH? Is the economy improving, has the government done enough to stimulate growth and has the industry turned a corner? It is the million-dollar question. “Economists have been saying we will come out of recession and we are out of it and we will see the light in the next couple of weeks. Well, I have a different view of that situation and I believe that we have still got the last legs of the recession and it is still going to
hit us,” Protti says. “The downward trend will continue before we see an upswing. I believe it will probably take another six to eight months before we see that. That is my opinion of course. Just an opinion.” Protti then comes back to the fact he hasn’t cut marketing budgets and the firm continues to focus on R&D. “We have done an enormous amount of work in the development of new products, ideas and designs of packaging. We have done it during a time when things were lean and once that upswing comes, there is a lot of those logs that have been on the fire that are going to ignite. “Cutting budgets in advertising and R&D, which competitors have done, is not a longterm fix; they are extremely short sighted,” Protti concludes. RAP is suitably prepared for an upswing, when it eventually comes. END www.southafricamag.com 105
leaders in
food pac kagi ng so l u t i o ns
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Royal Pack Solutions FEATURE
Royal Pack Solutions offers a “one-stop solution to the food and catering industry”.
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Royal Pack Solutions FEATURE
A
ccording to a recent study by Frost & Sullivan, increasing demand from the emerging middle class and the growing food and beverage sectors will drive growth for plastic packaging in southern Africa. Its study - Southern African Plastics Packaging Market - says growing affluence has “significantly spurred” growth. It covers linear low-density polyethylene (LLDPE), high-density polyethylene, polystyrene, 108 www.southafricamag.com
With the rand the way it is and the economy the way it is... Business is really tight out there
polypropylene and PET for the period 2006-2016 in South Africa, Botswana and Zambia. But is that true? Frost & Sullivan say the long-term outlook for the food and pharmaceutical plastic packaging sectors is “positive” but that do people in the industry think? “I don’t see the market turning around in the near future,” says Steven Veloza, director of Royal Pack Solutions (Pty) Ltd,
Royal Pack Solutions FEATURE
a company that specialises in the sale and distribution of generic food packaging materials. “I wish I did, but I don’t,” he adds. “I think this is just the way things are now and we have to adapt to it. People are talking about a turnaround next year, but logically I can’t see that happening.” Growth opportunities in the southern African market, it seems, will only be realised in the long-term.
ONE-STOP SOLUTION
Through Royal Catering Equipment, a division of Royal Pack Solutions, we provide the commercial kitchen with a one-stop option
Royal Pack Solutions specialises in the sales and distribution of generic food packaging materials, branded products, catering equipment and other allied products by
110 www.southafricamag.com
offering a “one-stop solution to the food and catering industry”. Its extensive range of generic products also includes a limited selection of perishables and protective clothing. “With branches throughout the country we are well-positioned to supply the market nationally,” Veloza, who is also CEO of Royal Pack Solutions’ parent company J.E. Royal Group and founded the business with his father Richard in 1994, adds. “This entrepreneurial company has evolved from humble beginnings to leading brand,” he continues.
Royal Pack Solutions FEATURE
fast facts Company name: Royal Pack Solutions (Pty) Ltd
Founded: 1994 Industry: Packaging Headquarters: Alrode Web: www.royalpack.co.za Parent company: J.E. Royal Group
CEO: Steven Veloza Company at a glance: Royal Pack specialises in the sale and distribution of generic food packaging materials.
The rapid expansion of the company has been impressive by any measure. “Our growth has been founded upon a solid commitment to pursuing loyal relationships, striving always to provide a quality product, reliable service, and an overall value adding experience. “We have an extensive one-stop offering,” Veloza adds. “For example, through Royal Catering Equipment, a division of Royal Pack Solutions, we provide the commercial kitchen with a one-stop option. We carry a vast selection of catering equipment, ranging from kitchen smalls to small appliances. “Royal Brand Management Solutions, another division of Royal Pack Solutions, provides nationally represented food franchises with a unique service driven product,” he continues. “We offer a complete procurement and logistics solution for the management of their branded packaging and allied products. We currently have a number of well-known franchises on board.” 112 www.southafricamag.com
Telephone: +27 (11) 865 1199 Fax: +27 (11) 865 3671 Email: kiarah@enyuka.com
Kiarah Chemicals has been in existence for the past 10 years. The company has grown to become a viable competitor in the chemical manufacturing industry. Kiarah Chemicals manufactures and supplies industrial cleaning materials to small corporations as well as large institutions: COMMERCIAL: • Office buildings • Hospitals • Malls • Dairies • Commercial parking lots and garages • Industrial Laundromat • Apartment complexes • Restaurants • Schools • Government contracts INDUSTRIAL: • Hospitals • Dairies • Industrial Laundromats
www.kiarahchemicals.co.za
NATIONAL COVERAGE Royal Pack Solutions has seven branches throughout South Africa. “I believe that you need to have a clear vision of where you want to go. You also need to work hard. That’s what it boils down to,” says Veloza of his company’s expansion. Of course, Royal Pack has felt the effects of recession - there is no doubt - and over the last two years, the business has changed, Veloza says. “At first it was quite easy to expand; we could open new branches with ease and we would see results quickly. In the last two years, with the rand the way it is and the economy the way it is, that is not the case anymore. Business is really tight out there. At times like this customers are under pressure and are looking around for
better pricing. Obviously the end result of that is that margins are affected. Times are tough, make no mistake about it.” The tougher times led Veloza to look at the business’s structure, strategy and efficiencies again. “If I can take something good out of this it would be that it forces us to go back and look at the business to see where we have gotten careless, where we spend too much and how we can do what we do better and more efficiently. You have got to get better. You cannot increase prices. On the contrary, you have to reduce them. It is a case of really looking at how you work and making sure you can do things better. “In terms of national footprint, some regions and areas do better than others,” he adds. “I
I believe you need to have a clear vision of where you want to go
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Royal Pack Solutions FEATURE
believe that it is down to the competitiveness of that region. We have gone into some regions where for years and years they have had very little opposition and have been able to maintain a high margin. We have come in there a lot more competitively and aggressively and captured a big part of the market quickly. But in other regions there is a lot of competition, the growth is a lot slower.”
with customers and, of course, suppliers. It stays close to both “We maintain close relationships and we are only as strong as our relationships are,” Veloza says. “I believe maintaining that is vital. It is important because we have been working with suppliers to come through the downturn together. There isn’t a magic fix. I think it just comes down to better communication. It is in both our interests to tackle certain issues, looking at how we could do it and what we would do, together. “I also believe in applying and maintaining an entrepreneurial spirit
We have to adapt to it... People are talking about a turnaround next year, but logically I can’t see that happening
ONLY AS GOOD AS YOUR RELATIONSHIPS As a distributor, the strength of business is based on the strength of relationships 114 www.southafricamag.com
Tel: (011) 900-2323/4 Tel: (011) 868-3154/5 Fax: (011) 900-2648 6 Evans Road, Alrode, South Alberton, P O Box 146693, Bracken Gardens, 1452
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in the business,” he adds. “I believe that is very important in remaining competitive. These days every customer is accounted for. You have to be in touch with the business, what you are doing, customers and the market, to stay on top of things.” Veloza says Royal Pack still has an eye for expansion, but will be “more cautious” when picking opportunities. “It is harder to expand now and it takes longer to break a business even. We will be more cautious, keep costs down, keep our eye on the ball – to survive going forward we need to be as cheap and efficient in our running as possible. “We will keep looking for new ways to penetrate the market. We can’t become complacent. We can’t afford to not move forwards. If you aren’t moving forwards, you are falling backwards.” END
t
www.marcoplastics.co.za
For All Your Packaging Requirements and All Related Hygiene and Safety Ware Tel: (011) 900-3644 Fax: (011) 868-3513 Cell: 082 443 9464 E-mail: paradigmmarketingsa@gmail.com
P.O. Box 166777 Brackendowns 1454
l a n o s r e PT o u ch The
116 www.southafricamag.com
Club Travel Group FEATURE
Wally Gaynor, Founding Managing Director of Club Travel Group, tells Jane Bordenave how a personalised approach to customers’ needs has driven forward his business.
W
ally Gaynor is something of a pioneer in the South African Travel Industry. Having gained considerable experience working for Thomas Cook and Aer Lingus Travel Agent/Tour Operating divisions in his native Ireland, followed by two years in Australia, he established Club Travel Group in 1987. Since then, the company has grown from being just Wally to employing 160 staff and being the largest Independent Travel Group in South Africa. “Club has three divisions: Corporate/ Retail Travel Agencies/Travel Management Companies, a Franchise Division and an online Travel Division,” Gaynor says. “The Thebe Tourism Group part of Thebe Investment Corporation the oldest Black empowerment company in South Africa purchased 51 percent of the Club Group in 2009.” www.southafricamag.com 117
Club Travel Group FEATURE
The firm owns and operates many online travel websites, such as flightsite.co.za, and it remains one of the premier online travel operators in the country, he adds. “I saw the potential of online travel long ago, I don’t believe in reinventing the wheel and in 2007 approached Expedia to get the rights to their Technology in Africa and modify it to suit the local conditions. However they were focussed on markets that were growing at that time, such as Australia, China, etc. So we set about developing our own search and booking engine and, while it wasn’t an easy task, it has really benefitted our business.” As well as operating its own travel websites, it operates other companies Travel websites such as the retail giant Pick & Pay and Travel Latitude who use the engine on a white label basis. 118 www.southafricamag.com
Doing what is best What really differentiates Club Travel Group from its competitors is its philosophy that it should always give the client what is best for them. “We do not try to over sell,” says Gaynor. “If the customer is a young guy looking to travel to the UK then we would find him the cheapest option often with multiple changes, as he will almost certainly have a small budget. On the other hand, if it’s an older person then we would advise them to go non-stop as it may be a bit more expensive but will be more suitable to their needs.” Online customers can also get personalised help by contacting the company’s call centre if they cannot find the results they are looking for through internet.
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This philosophy of personalisation extends to all its business divisions; in addition to online, the company also works in the areas of corporate travel, leisure travel and franchises. These three areas operate in quite different ways. “In terms of corporate travel, we are a travel management company working with companies to better manage their travel spend. Leisure travel requires a different approach but one area is common to both, dedicated, professional staff who care.” The franchise division includes branded and non-branded travel agencies as well as independent travel consultants, they have access to the Club buying power, technology and infrastructure. “We have been voted Africa’s leading travel agency for the past four years running and feel that our personalised approach has definitely been a major factor in that.” Having different divisions has a knockon effect for competition, too. “It varies by business area,” explains Gaynor. “In the area of corporate travel, we are up against big names 120 www.southafricamag.com
like American Express. In high street we are up against other travel agency chains and, but we fare well in all these areas. We are fortunate because, for most travel agents, the main threat is from travel websites, but we already have a very significant presence in that area.”
Growth “slower than expected” While the company has continued to grow, the recession has had an impact. “Growth was slower than expected, but in some ways it has been a good year,” says Gaynor. “The global downturn made us look again at our business and to tighten up the areas that needed it. So we will be coming out of the recession stronger than we went in.” Gaynor also sees his employees and franchisees as an important asset in the pursuit of new business, tapping their knowledge in order to take advantage of niche markets, such as the gay community. “With a change to traditional buying habits
Club Travel Group FEATURE
and a move to online, the traditional agents have to specialise, we have branches that tap into the gay market others target the Islamic community, focussing on these customers’ particular interests and needs, such as transport Hajj and Umrah Pilgrimage Travel.”
Club cares The employees are all actively involved in Club Travel’s corporate responsibility programme Club Cares. In the last 12 months, volunteers have helped to transform the grounds of Stepping Stones crèche in Athlone, it has donated computer equipment to Assist a Learner Trust in Cape Town and staff helped erect and run a ‘food tent’ with not-forprofit organisation Heart, “For us it is very important to give back to our community and our country. In Africa, there is a huge gap between rich and poor and we want to do something to help out. It is something that we do because we love where we live and we feel that there is a lot of need for it. Even if we can
just give a small amount back, we believe that every little bit helps.” The future is looking bright for Club Travel Group. “Over the next five years, we see our main growth coming from the corporate division, as well as the continued growth of online business, we see continued organic growth and possible acquisitions,” says Gaynor. “We also have plans move into Africa with our online brands. However we feel that our human approach – that no matter what part of our company you come into contact with you can always speak to a real person who can help you – defines our organisation and is the main driver of our growth and continued success.” By maintaining this personal touch through the transition into the digital era, when many companies have abandoned it, the company has differentiated itself in a way that serves the customer. It is this personalised and innovative nature that will see Club Travel Group providing personal travel services to all sections of the community for a long time to come. END www.southafricamag.com 121
tr a ve l the future of
M anagement South Africa Magazine interviews Tony Sofianos, CEO and founder of Wings Travel Management.
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Wings Travel Management FEATURE
A
ccording to the charismatic CEO and founder of Wings Travel Management, travel management companies have spent the last couple of years streamlining their businesses and looking for cost savings for clients. The search for efficiency has been relentless, he says, and everybody has been “looking for an approach that makes them stand out”. He thinks Wings has it. Wings was founded in 1992 as a corporate travel management company and has since become recognised for providing a high level of personalised and professional service for the corporate sector, whilst aggressively leveraging technology to advance innovative and customised solutions.
“We have multi-national buying power for offshore, marine and corporate fares, we have 24/7 emergency service, we have specialised expertise, and we deliver a high level of service and value to our clients,” says Sofianos. The integration of strategically situated global operations along with sophisticated technology and pioneering quality management means Wings is able to offer “effective travel management to our clients,” he adds. “Wings is a global organisation with offices in London, Manchester and Aberdeen in the UK, Johannesburg, Cape Town, Pretoria and Durban in South Africa, Houston in the US and now Dubai,” Sofianos continues. www.southafricamag.com 123
Wings Travel Management FEATURE
FAST FACTS Company name: Wings Travel
Management
Founded: 1992 Industry: Travel Dual Head Office: Johannesburg Web: www.wings.travel CEO: Tony Sofianos Company at a glance:
Wings Travel Management is a leading travel management company with a rapidly expanding global operation Wings is also looking at further expanding its African operation by establishing an office in Luanda, Angola. “For the past 15 years, Wings has provided travel management solutions for many clients around the world. We continue, despite the economic situation, to invest in our global expansion plans and we want to continue to build upon our position.” 124 www.southafricamag.com
TMC TRAVEL ALLIANCE ACQUISITION Last September Wings acquired Londonbased TMC Travel Alliance, opening an office in Manchester and announcing a series of high-profile appointments, including that of Paul East, who was brought in from FCm Travel Management. “We also since appointed ex-HRG managing director, Peter Kite, as a non-executive director, which proved to many that we are a serious player,” Sofianos says. “Wings is well on its way to becoming an established part of the travel management community,” he adds. “We have been present in the UK market for the last decade, serving mainly the oil and gas sector from our Aberdeen base. But since acquiring Londonbased TMC Travel Alliance last September we’ve gone to the next level. “Yes, the acquisition was a bold step to take in a recession,” Sofianos continues.
Tailor made travel solutions that work for you.
There is no substitute for experience. At Wings Corporate Travel, we’ve “lived and breathed” the Offshore and Marine Industry for almost 20 years. It is our niche, our specialty, our expertise. Now, as Wings Travel Management we will continue to ensure that our clients’ travel programs are effectively managed, via our tailor made travel solutions and a high touch service offering that works for you. For more information please contact us on businessdevelopmentuk@wings.travel
www.wings.travel TRAVEL MANAGEMENT © 2010 Wings Corporate Travel (Pty) Ltd. trading as Wings Travel Management. All Rights Reserved. (WMC - 1871)
“But it is helping our already established UK operations to achieve a greater market share. It was certainly a bold but very exciting step for our company, especially given the current economic climate. Our company acquisition policy has always been to identify opportunities that are aligned to both our culture as well as our niche market strategy.” Wings has since announced the establishment of a dual head office in London. The headquarters in Johannesburg will always be the company’s spiritual home, however. “A distinct advantage for clients in having a dual head office is in providing travel management for traffic across three continents - Europe, the US and Africa. This ensures effective travel management between the major business sectors around the globe,” Sofianos says.
DUBAI PROMISE Wings recently opened its first offices in the middle east, in Dubai. The Dubai operation, Sofianos says, will specialise in the oil and gas, corporate and marine sectors across the middle east. “Harvey Lines is Director of Operations for the middle east and Africa for Wings Travel Management and will oversee the operation in Dubai,” Sofianos says. “We will provide a quality travel management service for the region.” He says the feedback Wings got in recent years from travel bookers, which inspired the move, is that companies in Dubai are desperately seeking a level of service that they’re not currently getting. “Wings is winning new clients in this market because our service is unique. We’ve tailored our business model to meet the distinctive needs of the oil and gas industry,” Sofianos says. “This is already a strong market for Wings so we’re excited to position an 126 www.southafricamag.com
Wings is well on its way to becoming an established part of the travel management community
Wings Travel Management FEATURE
operation in this key business area,” he adds. “This expansion will enable us to provide a complete travel solution that responds to the needs of the regional oil and gas industry. The strategic importance of launching in Dubai is further underlined by the fact that it is a central business hub in the middle east.”
TECHNOLOGY PLATFORM According to Sofianos, Wings is in the process of revolutionising its technology platform. “All I’ll says is that we are committed to becoming the benchmark in global travel management,” he explains. Wings currently provides innovative technology that is based around a single technology platform that allows accurate data management. Tied to this single platform is a unique quality management system that tracks travel incidents across the broad spectrum of travel activities air, car, hotel, transfer or agency. After the incident is recorded, researched and resolved, a report is compiled for the client to assist them manage supplier performance - not just the travel agency, but all of their travel-related suppliers. “What we are currently focusing on is setting the foundations and fulfilling our vision to grow over the next 10 years,” Sofianos says. “We are never going to be mass market, but we aim to establish ourselves as the key niche player.” It seems uncertainty about the future of the economy has not and will not stand in the way of Wings’ expansion plans. “Clients need fast and efficient travel at a moment’s notice and we need to be ready for that,” Sofianos says. He predicts a period of sustained expansion over the coming years. “We want to increase turnover, bring in new business, and continue our strategy of controlled acquisition strategy,” Sofianos concludes. END www.southafricamag.com 127
F l i gh t o f t he
navigators
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ATNS FEATURE
navigators ATNS is responsible for the efficient running of South Africaâ&#x20AC;&#x2122;s Air Traffic Control Systems.
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ATNS FEATURE
A
TNS, the Air Traffic and Navigation Services Company of South Africa, is the sole provider of air traffic, navigation, training and associated services within South Africa. Operating at 21 airports, including Johannesburg, Cape Town and Durban International, more than half a million aircraft arrival and departure movements are handled annually by its highly trained air traffic management specialists. “We are responsible for the efficient running of SA’s air traffic control systems,” says Anna Sanfilippo, ATNS marketing and communications manager, who spoke to our researcher in September. ATNS’ services extend further than air traffic control, however, and into the provision of vitally important aeronautical information used for all flight
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planning purposes as well as search and rescue activities and the maintenance of a reliable navigations infrastructure. The Air Traffic Control (ATC) training academy trains international aviation professionals and maintains and subscribes to ICAO standards and recommended practices.
We are responsible for the efficient running of SA’s air traffic control systems
TRAINING FUTURE NAVIGATORS
The Aviation Training Academy (ATA), was formed in 1995 to provide ATC training, aviation related training as well as a complete spectrum of technical training courses required for air traffic control, engineering support and airports at the ATC Training centre. Since its inception the ATA has continued to expand.
ATNS FEATURE
“With over 1000 employees, ATNS is committed to training and our training facilities are top notch,” says Sanfilippo. “Based just yards from our Head Office in Gauteng, our training academy not only services ATNS but also the rest of South Africa. “Dependant on the job role,” she continues, “courses, exams and practical assessments are carried out at the academy in order to produce hard working employees who complete their job to the highest standard. Other areas of training also include HR, Finance and Development and Administration. All of which are again, carried out at the academy.” It is the mission of the ATA to provide a comprehensive and affordable range of
applicable air navigation services training in accordance with regulatory regional and international standards. The ATA maintains, amongst others, ISO 9001/2000 accreditation, which makes it a recognised and worldclass training institution. The ATA fully subscribes to ICAO Standard and Recommended Practices (SARPS) and requirements as well. “ATNS has ramped up its training,” Sanfilippo adds. Last year it increased numbers by around 10 percent through training and by hiring staff from the air force and abroad. “I am delighted that we are able to invest in our youth in this manner,” says ATNS CEO Wrenelle Stander. “It gives me great pleasure
With pride, we handle over half a million arrival and departures annually
132 www.southafricamag.com
PROFESSIONALISM
We ensure our customers that we will provide them with the sales and servicing of portable fire extinguishers in a professional manner. Our services include: - Inspections - Numbering (According to the NOSA register) - Recharging of depleted portable units - Hydrostatic Pressure Testing With the servicing we include maintenance documentation. All our servicing is done in accordance to the South African Bureau of Standards 1475 specifications which is taken into serious consideration when evaluating service contractors. We are proud members of: - SAQCC - Fire Protection Association (FPA) - Fire Fighting Equipment Traders Association (FFETA) - Natural Safety TransFire was awarded with the SABS Diamond Mark, which is only presented to the companies, which have complied with the stringent SABS 1475 regulations. TransFire was awarded with a SANAS Accreditation Certificate, which is only awarded to companies that are permitted to do Hydrostatic Pressure Testing.
TRANS FIRE SYSTEMS
Trans Fire expanded, and by doing so Trans Fire Systems came into being to provide our customers with all their fire protection needs. Trans Fire Systems will install and inspect almost every type of commercial automatic detection and suppression system which include:
WIDE RANGE OF PRODUCTS
In addition to comprehensive servicing we offer a full range of fire fighting equipment which include: - Hose Reels - Dry Chemical Powder Extinguishers - Carbon Dioxide Extinguishers - Trolley Units - Vehicle Fire Fighting Units - Fire Hoses - Symbolic Signs - Emergency Lighting - Fire Extinguisher Cabinets and much more.
SANAS ACCREDITATION
TransFire is approved by SANAS as an approved Inspection Body to conduct Hydrostatic Pressure Testing on transportable cylinders. The Occupational Health & Safety Act â&#x20AC;&#x201C; Vessels Under Pressure Regulations states that an inspection and hydraulic test must be done by an approved inspection authority. With only a few approved Inspection and Test Bodies in South Africa, TransFire is classified as a Type C Inspection and Test body which means that we do not sub-contract any part of the inspection and tests.
- Alarm Systems - Suppression Systems - Carbon Dioxide Systems - Clean Agent Systems (FM 200) - Foam Systems - Access Control - CCTV
SERVICES TO SUIT OUR CUSTOMERSâ&#x20AC;&#x2122; NEEDS
All our employees are professionals. Every employee at Trans Fire is trained to fulfil the expectations of our clients. To sustain our image and reputation we have moral and ethical responsibilities to our customers to provide them with the most professional service possible. Annual inspections and services have to be done on a yearly basis and are adequate for most of our customers although many customers require semi-annual, quarterly or even monthly services.
FIRE TRAINING
We have various fire fighting courses available, ranging from intensive courses covering every aspect of fire management, right down to basic courses that show you how to operate an extinguisher.
ATNS FEATURE
to empower such brilliant young minds who will one day be our future leaders.”
INVESTING IN YOUTH AND WOMEN The youth represent the large majority of people in South Africa. Isando-based ATNS has identified it a strategic necessity to tap into this market, particularly young women, and help empower these individuals so as to develop the people of the country. ATNS employs 298 air traffic controllers (15 percent are women). “The number of women working within the business has certainly increased,” says Sanfilippo. ATNS has achieved a good ranking within the top companies in South Africa with regards to female representation at executive management and board level, she pointed out. 134 www.southafricamag.com
Training is important for another reason. Air traffic controllers, like most skilled workers, are in short supply. SA regularly loses staff to overseas.
LEADER IN THE FIELD ATNS is an independent, commercialised company that was established in 1993. As mentioned before, it is the sole provider of its unique services offering within South Africa, and operates at 21 airports throughout the country, including: Johannesburg International Airport Cape Town International Airport Durban International Airport An interesting fact is that Johannesburg can currently move a maximum of 56 aircraft an hour; Cape Town can move 34
and Durban 28. But, the plan is to raise capacity to 64, 40 and 34, respectively. With limited runways and infrastructure, that could be a challenge. “With pride, we handle over half a million arrival and departures annually,” says Sanfilippo.
INTERNATIONAL HEROES ATNS gets 97 percent of its income from providing air traffic control services to airlines in South African airspace, but is also sells services to other countries in Africa. It is currently upgrading the satellite network across southern Africa to guide planes through the skies. The company will provide a similar network in northeast Africa. “We continue to partner into Africa,” says Sanfilippo.
On the international front, ATNS is considered as a leading Air Navigation Service Provider. As original founder of CANSO, the Civil Air Navigation Services Organisation, which serves as the global voice for air traffic management, ATNS strives towards providing for superior quality, cost-effective service delivery. It is heavily involved in the industry and continues to work with many international counterparts to “pioneer innovation in air traffic management,” Sanfilippo says. ATNS is affiliated to the National Department of Transport, with the minister as its only shareholder, and it has a clear vision. It wants to be ‘the preferred supplier of air traffic, navigation, training and associated services to the African continent and surrounding regions’. END www.southafricamag.com 135
T he
‘home from home’ experience
136 www.southafricamag.com
African Nest Executive Lodge FEATURE
A
frican Nest Executive Lodge is an affordable, luxury escape with overnight accommodation and top class conferencing facilities. It is 65km from Sun City, 60km from Pretoria, and the Krugersdorp Lion Park is on its doorstep. “We are a three star establishment, with a convenient location in Krugersdorp in the Western Suburb of Johannesburg, and easy access from the N14 highway and R24,” says Mabel Makibelo, managing director, who helped launch the lodge in 2007. “We are an exclusive retreat between Johannesburg and Suncity. The setting is truly tranquil and it is only 65km to Suncity, 60km to Pretoria and 30km to JHB central. Also it is 5km to Ngonyama/ Krugersdorp Lion Park and we are opposite Talton International Car Racing.” You can escape, enjoy all these sites, experience “true African accommodation”, and guests describe the setting as “paradise”, Makibelo says. If not exploring the lion park or other attractions, time can be spent “relaxing along side the pool,” she adds.
go the extra mile to make clients happy and we cater to them according to their needs. We cater for different cultures. The environment is beautiful.” African Nest Executive Lodge is the perfect venue for conference, weddings, year-end functions and bush breakaways, it seems. “We have 16 rooms, each tastefully furnished. Rooms are air-conditioned and we offer en-suite and TV. The surroundings are beautiful and we specialise in catering to your individual requirements.” It also has body massage facility. “Why the name African Nest? We feel that a nest is a safe, warm place. There is security in the nest and there is also life in the nest. The bird lays eggs in the nest and those eggs are protected. We create an atmosphere that is safe, secure, alive, warm and healthy…. That is African nest,” Makibelo continues.
We feel that a nest is a safe, warm place. There is security in the nest and there is also life in the nest
HOME FROM HOME At African Nest Executive Lodge emphasis is placed on friendly service, comfort and delicious South African food. Meals can be served on request and it is all part of creating a “home from home”. “That is a nice summary. I’d add that African Nest Executive Lodge is ideal as a stop-over for tourists, or as a base for business executives,” says Makibelo. “You can conference here, do corporate team building and other activities as well. “The nest is very different to other lodges. It has a home from home atmosphere. We really
CONFERENCES
The lodge’s conference facilities hold sway with business leaders and Government. With its excellent location, close proximity to the N14 freeway and R24, tranquil atmosphere and experienced personnel which Makibelo is very keen to emphasise - African Nest Executive Lodge is the ideal venue for conventions and conferences, launches and promotions. “As I said, our location makes us the ideal venue for the busy executive who needs to break away into a tranquil and peaceful environment but does not wish to drive hours to reach his destination. It is also great for conferences. African Nest Executive Lodge strives towards excellence and we combine our experience and expertise in order to provide customers with a unique function, tailor-made to suit their needs. “The nest is extremely popular with the www.southafricamag.com 137
African Nest Executive Lodge FEATURE
business world. We have a lot of business customers,” she adds. “So far, I think, being young - we were only developed three years ago - we can be happy with what we are doing. Most businesses take five years to reach their peak so we are still in progress. I think we can get it. “In the future, I want to see maybe a bigger conference facility that can take more than 500 people because I always get requests from ANC, from government, whereby they want to host conferences for large groups. I am also looking to have a fully-fledged health and beauty spa.”
WEDDINGS Of course, African Nest Executive Lodge is also aimed at weddings, year-end functions and bush breakaways – it caters for a lot of church events too, Makibelo says. “African Nest Executive Lodge specialises in catering for the patrons’ requirements, whatever it is.” As a wedding reception venue, African Nest Executive Lodge offers banqueting facilities, with secure parking on the premises. “Luxury rooms are available for overnight guests, who are given discounts when in a wedding party,” says Makibelo. Its kitchen is a big draw, with people coming from far and wide to sample it. “At African Nest, we believe making 138 www.southafricamag.com
your stay and your days memorable and unforgettable. Our excellent facilities will guarantee an experience you will never forget. “African Nest Executive Lodge specialises in catering to your individual requirements, whether cocktails, braai, African cuisine or theme functions. Our food is fantastic. We have the most elegant food. It is freshly cooked. The food is a real draw and we get people from as far and wide as 400km coming to African Nest Executive Lodge just because of the food.” She says the team will go to “all lengths” to meet customer requirements and to ensure, in the case of a wedding for instance, “the dream day runs smoothly.” “The grounds are fantastic. It is a beautiful place. It gives you that feeling - there is a unique atmosphere. The grounds are big and well kept. It is about eight hectors. You have enough time to walk, explore and take in the surroundings of a truly African experience,” Makibelo concludes. “The staff play an important role in creating the ‘home from home’ so making sure we recruit the right people is vital. The lodge has very loyal customer-friendly people. All of them are brilliant, friendly, loyal and very friendly.” A nominal fee is charged to guests who wish to use the African Nest Executive Lodge facilities for a day. END
Come and discover an exclusive retreat between Johannesburg and Suncity. ß Tranquil setting on 8.5hac bushveld, 5km to Suncity, 60km from Pretoria and 30km from JNB central, 5km to Ngonyama/ Krugersdorp Lion Park for modern conference facilities, corporate team building and incentives activities. ß African Nest Executive Lodge has a 3 star grading ß Perfect venue for conference, weddings, year-end functions and bush breakaways, ß African-Nest Executive Lodge offers 16 rooms in unique and different arranged lodges. ß Our air conditioned rooms offers en-suite & TV. ß The garden next to the pool surrounded by palm trees is also ideal for breakfast and dinner in the garden. ß African Nest Executive Lodge specializes in catering to your individual requirements whether cocktails, braai, African cuisine or theme functions ß You can also enjoy a dip in our sparkling pool, an ideal way to cool down after a long day. Body massage and Gym facilities. Please contact us to enquire about our full range of services, or to request more information. We are at: No 33 Reydal Farm Talton, Krugersdorp. P.O Box 10102 Vorna Valley 1686 Mabel: 083 633 2837 Vivienne: 076 307 4320 Email: mmakibelo@yahoo.com
www.africannest.co.za
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