South Africa Magazine Issue 29

PeoPLe cuLTure TrAVeL ProPerTy BuSiNeSS wiNe SPorT eNTerTAiNMeNT

iSSue 29 r40.00

dawn A new

South Africa has an energy deficit on its hands. is fracking the answer?

Botswana’s mining potential examined

Interview with Charles Siwawa, CEO of the Botswana Chamber of Mines

willis South Africa

South Africa is attracting investment in mega projects that require capabilities that Willis offers

DHL express SSA

A look at DHL’s new sub-Saharan African quality control centre

Listening to the Southern skies

How the SKA radio telescope can help us answer the universe’s big questions

MARIKANA: DEEP TROUBLE FOR SA? The ongoing Lonmin strike has thrust South Africa into the international spotlight for all the wrong reasons.

The “Marikana massacre” – so dubbed by the local media – saw striking miners armed with spears and machetes hack mine guards and police officers to death, followed by strikers being cut down by a hail of police bullets.

The scenes were shocking, reminiscent of our apartheid past.

For me, what happened at Marikana is the tip of a much bigger iceberg and it has lifted the lid on deep undercurrents of labour and social unrest. It is a tragedy that highlights the failure of the ANC, run by a black elite, to improve the lives of the majority of its citizens; Marikana was an explosion of social resentment.

And that isn’t the only uncomfortable truth: the bloody confrontation showed that domestic factors (soaring power tariffs, high labour costs and political uncertainty) are as bigger drag on business activity as the current turmoil in Europe, which South African policy makers from President Zuma down have routinely blamed for a failure to grow the economy or create more jobs.

Perhaps they need to look closer to home?

South Africa will rebound. Hopefully we can learn from the events of August 16.

Enjoy the magazine!

Ian Armitage Editor

EDITORIAL Editor – ian Armitage Sub editor – Marie Toms Editorial Assistant – clare durrant Writer – Susan Miller

BuSINESS

Advertising Sales Manager – Andy williams Researchers – elle watson Sandra Parr Stuart Platt Tom Lloyd Sales administrator – daniel george

ACCOuNTS

financial Administrator – Suzanne welsh

PRODuCTION & DESIGN Magazine design – optic Juice

Production manager - Jon cooke Images: getty, Thinkstock News: NZPA, AAP, SAPA

DIGITAL & IT

Head of digital marketing & development – Syed Ahmad

TNT PuBLISHING

CEO - kevin ellis Chairman - ken Hurst Commercial - david Alstin Publisher - TNT Multimedia Ltd TNT Multimedia Limited, unit 209, 16 Brune Place, London e1 7NJ tntmagazine.com

ENQuIRIES

Telephone: +44 (0) 1603 343902 fax: +44 (0) 1603 283602 andy.williams@tntmultimedia.com

SuBSCRIPTIONS

call: +44 (0) 1603 343902 andy.williams@tntmultimedia.com

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NEWS All the latest news from South Africa

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SPORT Interview: Bridgitte Hartley Bracing talk with a kayaking champion CuLTuRE Listening to the Southern skies How the SKA radio telescope can help us answer the universe’s big questions TECH Head in the clouds?

The paradigm shift is towards cloud computing and it’s already well under way BuSINESS Introducing The Courier Guy… The Courier Guy is one of South Africa’s fastest growing courier brands COVER Fuelling future generations South Africa Magazine talks to Bonang Mohale, Country Chairman & General Manager of Commercial for Shell South Africa fOCuS LogiSTicS Delivering the goods DHL’s Charles Brewer on Africa’s opportunities and challenges fOCuS reTAiL Exploring new frontiers CFAO Zambia’s managing director talks about plans to expand its nissan distribution system fOCuS SecuriTy Inside Zambia’s Security Industry G4S Zambia’s Stewart Scott says better regulation is needed to create a level playing field and a healthier security industry

56 60 72 78 82 86 94

fOCuS MANufAcTuriNg A clean sweep with over 50 years experience producing eco-friendly cleaning goods in namibia, elso Holdings is ready to replicate that success all over Southern Africa fOCuS BANkiNg Invest in the best FnB namibia is the largest locally listed company on the namibian Stock exchange fOCuS iNSurANce Q&A: Willis South Africa Scott Pickering tells us how Africa’s vast natural resources and rapidly emerging middle class represent a fantastic growth opportunity fOCuS MiNiNg What a gem Charles Siwawa, CeO of the Botswana Chamber of Mines, talks exclusively to South Africa Magazine fOCuS TrAVeL Taking to the skies Air Botswana’s turnaround strategy is in full effect as the airline finds its place in an increasingly competitive market fOCuS food & AgricuLTure What a catch Gino Asaro started his fish processing business GSA traders from scratch in 1989 Reeling ‘em in South Africa Magazine profiles terraSan Top of the food chain Berfin is a leading exporter and importer of specialty food products www.southafricamag.com

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All the latest news from South Africa Travel

Durban’s transport system

set for overhaul Durban’s public transport system is set for a major facelift with the city due to implement a new Integrated Rapid Public Transport Network.

The project will consist of four phases and will take 10 years to complete.

It is estimated to cost R25 billion.

Some 14,000 direct jobs and at least 6,000 indirect jobs will be created over the next five years, eThekwini municipality says.

The project is similar to the Bus Rapid Transit system pioneered in Cape Town and subsequently introduced in Gauteng.

The full details are: The procurement of 800 extra-long articulated buses serving three high-volume corridors: Bridge City (KwaMashu) to the CBD, Bridge City to Pinetown and Bridge City through the new Cornubia housing project to Umhlanga; A rail route from Bridge City to the CBD running through Rossburgh, Isipingo and Umlazi; The widening and upgrading of various roads for the first phase of the project, for which R2.4 billion has already been secured from the national Transport Department.

The city needs R8.4 billion to fully implement the first phase; 6

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Dedicated bus lanes and pedestrian walkways; Upgraded bicycle lanes and parking facilities and a bicycle-rent system from transfer stations, similar to those in London and Paris; Park-and-ride facilities for commuters to park their vehicles and then board public transport; A R1.5 billion upgrade by the Passenger Rail Agency of stations and signals along the route to ensure efficient synergy between rail and road transport; New stations and bus terminals; and CCTV coverage and enhanced security at all stations, monitored from a control centre.

Strike season

Lonmin shares plummet

after violence Shares in platinum miner Lonmin fell after the violence caused by union infighting between the dominant National Union of Mineworkers (NUM) and the upstart Association of Mineworkers and Construction Union (AMCU) disrupted operations and resulted in several deaths at a South African mine.

Production was severely

disrupted since Friday10 August as a result of an illegal strike by rock drill operators and increased incidences of violence and intimidation followed.

Seven Lonmin workers and two policemen were killed in the dispute at the company’s West Marikana mine.

Lonmin is listed on the London and Johannesburg Stock Exchange.

Sport

Sascoc chief

Lifestyle

Rebranded eNews to offer UK viewers

happy with ‘African view’

team SA Sascoc chief executive Tubby Reddy has described South Africa’s performance at the 2012 London Olympics as the best since the end of apartheid.

“The young people standing with you, those medals round their shoulders, they deserve a big round of applause,” he said.

The team won six medals in London, including a first in rowing.

The SA Sports Confederation and Olympic Committee set a goal of 12 before the games.

Sky Television viewers in the UK will soon be able to access African news coverage and content from South African news network eNews through its rebranded eNCA channel.

Sky Broadcasting Group has more than 10-million UK subscribers.

Senior eNews anchor Iman Rappetti said the development presented an opportunity to report on African content to a new market.

“We will continue to do news as we have been doing it — but now the people in the UK will be able to see it. We have reported with high standards and integrity and will continue to do so,” she said. www.southafricamag.com

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Property

Business

House prices set to fall McDonald’s SA House prices are expected to deflate in real terms over the next 18 months, a new report shows.

The Absa House Price Index July report revealed that the housing market is forecast to continue to show a relatively subdued price performance towards the end of the year and into 2013.

“Year-on-year growth in the average value of homes in the middle segment of the South African housing market continued to show some strain in July 2012,” Jacques du Toit, Absa Home Loans property analyst, said.

“Economic growth, employment, inflation, interest rates, household income and debt, consumers’ risk profile and consumer confidence will remain key factors to the housing market in the rest of 2012.”

On a month-on-month basis, house price growth is on a slight upward trend since April.

The Absa house price index is based on applications for mortgage finance received and approved by the bank in respect of small, medium-sized and large homes.

to open ‘McKitchen’

in Joburg McDonald’s is set to launch “McKitchen”, its next big evolution, in Victory Park, Johannesburg, MoneyWeb has reported.

The McKitchen will feature a modified cooking platform as well as new innovations to the front counter and beverages, the report said.

“We don’t want to be a plastic canteen that sells burgers,” Greg Solomon, the fast food chain’s South Africa managing director, is quoted as saying.

Strike season

Lonmin drops threat

to fire workers Platinum miner Lonmin has dropped its threat to fire workers who failed to return to work following the deadly clashes between striking rock-drill operators and police.

The government had earlier appealed to the firm to drop its ultimatum to sack staff if they failed to end their strike by August 21st.

Some 3,000 workers walked out at the

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Marikana mine in support of demands for higher pay.

The strike was declared illegal by Lonmin and the mine was shut.

Previously police shot dead 34 strikers prompting national outcry.

President Jacob Zuma declared a week of national mourning and promised to appoint a commission of inquiry into the shooting.

Business

De Beers sorts diamonds Harmony

in Botswana De Beers began rough stone sorting in Botswana in early August, a first step in its transfer from London to Gaborone.

Rough stone sorting or aggregation operations have been based in London for nearly 80 years.

Chief executive officer Philippe Mellier said it was the first step in a process that should be complete by the end of 2013. The move will transform Botswana into a leading international centre,

with about $6 billion worth of diamonds expected to flow through the country.

Botswana and De Beers signed a 10-year deal to move its rough stone sorting and trading division from London to Gaborone in September 2011.

Under the deal Botswana will for the first time directly sell 10 percent of gem stones manufactured locally, while De Beers will also increase the value of diamonds it makes available to manufacturing companies in the country.

Aspen to buy

Australian product

portfolio British drugmaker GlaxoSmithKline PLC will sell the rights to several of its products in Australia to South African-based Aspen Pharmacare Holdings Ltd in a deal that will reportedly cost $270 million.

The company said that the deal involves 25 products it no longer promotes, including genital herpes treatment Valtrex and the antibiotics Timentin and Amoxil.

Glaxo expects the deal to be completed in this year’s fourth quarter.

Aspen supplies branded and generic pharmaceuticals in about 100 countries

Gold posts

surprise

loss South Africa’s thirdlargest gold producer Harmony Gold has reported a surprise fourthquarter loss despite an increase in production.

Harmony reported a headline loss per share of 20 cents for the three months to end-June, down from a profit of 234 cents the previous quarter.

Production climbed to 320,351 ounces on higher tonnage and improved grade.

Cash operating costs however rose five percent to nearly R280,000 per kilogramme, mainly due to an increase in electricity tariffs.

FY operating profit increased by 80 percent, year-on-year, at R5.9 billion, Harmony said.

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Strike season

Investigation into Marikana

mayhem launched The Independent Police Investigative Directorate (IPID) has begun its investigation into the police’s role in the deaths of more than 30 people in clashes at Lonmin’s Marikana mine.

Spokesman Moses Dlamini said in a statement that it was “still [too] early in the investigation to establish the real facts around this tragedy” and that the investigation would “seek to establish if the police action was proportional to the threat

posed by the miners”.

Investigators are working with the criminal record centre and ballistics experts and would focus on collecting all the relevant evidence to assist in the investigation, he added.

Police shot and killed 34 people while trying to disperse protesters at Lonmin’s Marikana mine on August 17. Over 78 people were wounded.

Ten people had already died in the week before the clash.

Miners strike at

Striking miners face

Royal Bafokeng murder charges Rock drill operators at Royal Bafokeng’s BRPM mine have followed the lead of their peers at Lonmin and gone on strike, Business Day reported.

The Bafokeng-Rasimone Platinum Mine (BRPM) is a 67:33 joint venture between Royal Bafokeng Resources and Rustenburg Platinum Mines Limited.

Business Day said workers began the strike on August 22nd, demanding a R12,500 monthly salary.

In June the mid-tier platinum producer announced it was deferring project capital expenditure and that it would halt spend on non-critical items in the short to medium term in a bid to alleviate cost pressures and preserve cash flow.

The JSE-listed firm said it made the decisions in the view that the tough market conditions were likely to prevail for the rest of the year and into 2013.

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Some mineworkers arrested for the bloody protests at Lonmin’s Marikana mine could face murder charges, the Ga-Rankuwa Magistrate’s Court has heard.

The first batch of 39 men were brought into a packed courtroom on August 21, under heavy police guard. A 40th man from the first batch was in hospital.

The court heard that 260 mineworkers were arrested following violent protests at Lonmin’s platinum mine in Marikana, North West.

The prosecutor asked for a postponement, saying the ongoing investigations were wide and complex.

Sport

Business

Proteas become

S.Leone, China

number one

deal

World’s Test side

South Africa are cricket’s number one Test side after beating England in the third Test at Lords to take the series 2-0.

England put up a fine fight in what was an exciting final day but were unable to turn the tide and lost by 51 runs.

Batsman Hashim Amla described the match and the series win as “amazing”.

“England had to come out and play as a draw wasn’t going to help their cause, we had a few moments of drama but we held our nerve and the way Vernon bowled was incredible,” he said. “I hope there’s better to come, we’re a team that’s growing - a few of us have been playing together for three or four years, hopefully we can get better but this series was phenomenal.”

Proteas captain Graeme Smith was almost at a loss for words.

“We have spent so much time just working out how to beat England and win this series that the No1 status hasn’t sunk in yet,” he said.

“Beating England here is such a massive thing; we just need to sit back and enjoy it over the next few days.”

sign $15m fibre optic Sierra Leone and China have signed a $15 million loan agreement for the installation of a fibre optic cable which will boost internet capabilities.

The 17,000-kilometre-long submarine cable runs from Cape Town along the west coast of Africa, through Portugal and to France, connecting 21 countries – 18 of which are in Africa.

“The agreement is in preparation for the completion of the fibre optic installation which will be operational by the end of the year,” Development Minister Samura Kamara told local radio.

“It will enable every Sierra Leonean to benefit from the international fibre connection from Paris to the landing site in Freetown through South Africa which will involve Guinea and Liberia.”

Chinese Ambassador Kuang Weilin said, “the agreement is keeping to the bilateral and development cooperation” between the two states and will be implemented

by Chinese telecommunications giant Huawei.

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I n t erv i ew:

B r i d g i tt e

H a r tl e y

O

lympic fever has swept the nation and the world. I wanted to keep the mood going, so I asked South Africa’s bronze medallist kayaker Bridgitte Hartley about her time at the Games and what winning a medal is really like.

Bridgitte came third in the K1 500m in a time of 1:52.923 after Hungary’s Danuta Kozak, who won in 1:51.456, and Ukraine’s Inna Osypenko-Radomska, who managed 1:52.685.

It must have been amazing?

It really was, I think it’s still trying to sink in …

When did you arrive in London?

I only arrived on 3 August because the rowers were racing on the same stretch of water at Eton Dorney as me – they overlapped by like a day, so we couldn’t practice on the actual course. It didn’t matter because I was training in Austria and there was a good course there.

Did you stay in the Athletes’ Village?

When we were racing, the competition venue for the rowers and the kayakers was out near Windsor, we stayed in Surrey, 30 minutes outside Eton Dorney – I only moved to the main village on Friday after my race.

Bracing talk with a kayaking champion.

By Susan Miller 12

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So you had won already and could relax?

Yes, it was amazing.

Do you mingle with other athletes from other countries?

I mingled with the athletes I knew.

But because I was only there for the last few days we didn’t meet anyone

Interview: Bridgitte Hartley sport

really famous. Just to know you’re staying in the same area as Usain Bolt and all the other athletes is pretty amazing.

To talk about your race. Did you know it was going to be good?

I wasn’t really sure. I only slept like four hours the night before I raced. I was a little bit nervous but I knew that my heat and my semi went well so I think I was starting to realise I had a good chance to get a medal but it wasn’t guaranteed.

Have you raced against the athletes who won the gold and silver before?

I’ve raced against them quite a lot. Actually, I raced against the girl that got silver at the World Championships last year and in my semi-final she blew me out of the water. She was the gold medallist in Beijing; I think when I lined up against her I got so nervous that I let that feeling overwhelm me.

Mentally, I put her on a level above me instead of seeing her as equal. I need to put us all as equals rather than any one above the other.

Was it a close run thing? Could you have done better?

My semi-final went really, really well. Finals are always hard. I’m happy with how it went but it didn’t feel like my best race. I don’t like dealing in what ifs.

You can’t really say how you could or should have done. It’s all about how you can race on the day.

That’s what counts.

What were conditions like on the day?

The conditions were great. It wasn’t your typical London weather; it was warm and sunny. My heat and semi-final day was cold but the final day was perfect.

People even got sunburnt! There was hardly any wind.

It was definitely the best day of my life and I really did get emotional because it’s such a special event

We watched you jump onto the medal podium. What does it feel like?

It was definitely the best day of my life and I really did get emotional because it’s such a special event, it only takes place every four years and it’s fantastic to get a medal and to stand there and see your flag rising up against the other two flags of other great nations. It’s a proud moment. www.southafricamag.com 13

Do you get to keep the medal?

Yes, that’s yours forever.

flat water and I don’t fall out of my boat that often (laughs).

Looking forward to Brazil?

Yes, definitely. I don’t feel like I’ve reached the peak of my career and I feel like I broke through a barrier in London. I’ve realised I can be one of the best in the world.

So what’s next for you now?

Well, I’ve got a holiday now for two months and then I’ve got training again in October but there are no races again until next May.

If youngsters were inspired to try kayaking what should they do?

I think the best way is to join a club. There are dangers in kayaking. You need to get help with the basics first.

Have you had sponsorship along the way?

It’s been mainly our Olympic Committee and Lottery and products but now I think perhaps we’ll open up a couple more doors.

Is kayaking dangerous?

I wouldn’t say so because I don’t fall out of my boat that often. I know that a lot of the clubs use them. I don’t have to as I’m on 14

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As a top athlete what do you do on holiday?

Loll around or active stuff?

It’s nice to do stuff, meeting friends and visiting different places. I’m going now to Portugal to an event called the Meeting of Champions and then I’m heading off to Miami to visit my brother.

And activities?

Well, I’ve been a little overwhelmed with all the media attention in South Africa, it’s been a mad time but I might do something for fun like go surfing or go for a bit of a run every now and then.

Visit www.bridgittehartley.com to learn more about Bridgitte. END

Interview: Bridgitte Hartley sport

PARALYMPICS After the Beijing Olympics, SA came back with 30 medals, 21 of them gold and was placed sixth on the medal table.

The South African Paralympians – a 62-strong squad of athletes – were set a target of 40 medals by the South African Sports Confederation and Olympic Committee (Sascoc) for London’s Game.

I met three of them …

Michael Louwrens, the oldest member of the team at 52, is competing in his 5th Paralympics and is expecting to add to his gold medal tally in the shot put. Paralysed in 1983 after an operation to mend a rugby injury went wrong, he was inspired to compete again after seeing other Paralympians on television.

He comes up against the same athletes on numerous occasions and says the medals are usually fought out between him, a Russian athlete and a Jordanian athlete, “who always kisses me on both cheeks when we meet”.

A previous World Record holder, he’s intent on getting it back again…

Also a multiple medal winner, Illse Haynes (27) competes in the 100m and long jump track and field 13 class

for the visually impaired and is ranked 1st in the world.

She found the London Olympic Village “awesome” and liked its sense of space.

A resident of Stellenbosch, she got involved in disabled sport in 2000.

She was diagnosed with Stargardt disease, which affects the central vision, when she was 11 and started competing when she was 15 years old. Her first Paralympics was at 19 in Athens.

A serious contender for gold in both codes, Illse was nursing a muscle tear but remained hopeful that she would be able to compete at her best. Unlike Michael she thinks this will be her last Paralympics, as she wants to start a family with her husband. “I’ll probably bow out at the World Championships next year in July”.

And then there’s Zanele Situ, 41, in a wheelchair since she was 12. She’s also a multiplewinning Paralympic champion.

She started off doing shot put and table tennis as well as javelin, which she’ll be representing SA in this time.

“I love the event and I love competing”, she says.

A Kokstad resident, she’s a celebrity now in her hometown and like the others, is a dedicated athlete, training five times a week.

How many medals does she have?

“A lot”, she laughs, adding that she keeps them at home.

www.southafricamag.com 15

LiSTeNiNg To THe

Southern

How the SkA radio telescope can help us answer the universe’s big questions.

By Susan Miller

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Listening to the Southern skies culture

I

s there life on other planets? Did it all start with the Big Bang?

Many of us are fascinated by these questions. Soon the SKA (Square Kilometre Array) radio telescope, to be situated largely in South Africa, will help us answer them.

Award-winning science columnist Sarah Wild, Science and Technology Editor at Business Day, has written about the development in her book Searching African Skies – The Square Kilometre Array and South Africa’s quest to hear the songs of the stars.

It tells the tale of the decision to site the biggest, most powerful radio telescope ever to be built in South Africa and our ongoing search for answers in the skies.

The SKA will make pictures from radio waves, instead of seeing light waves, and will be the largest scientific instrument on Earth. Southern Africa -- we partnered with Mozambique, Zambia, Mauritius, Madagascar, Ghana, Kenya, Botswana and Namibia -- was identified as the preferred site after nine years of work by the South African and Australian SKA bid teams.

But lest we get too celebratory, Australia will provide the site for the other.

So ET, we may soon be hearing all your phone calls.

I asked Sarah about the book, her background and what space exploration can mean to us:

There are discoveries about the universe and how it works, but there are also the technological innovations that will change the way we live

www.southafricamag.com 17

You have a Bachelor of Science in Physics, Electronics and English Literature, specialising in radio astronomy. How did you decide on your three majors?

I studied at Rhodes University. It’s one of the few places in the country where you can get a BSc with a non-science major. People seldom end up doing what they studied, so I decided to do what I loved. I enjoyed science at school, but the main reason I took physics was for the challenge. There are very few women in physics. In fact, in my second and third years, I was the only woman in the class. English is my first love.

What sparked your interest in radio astronomy?

Radio astronomy was part of our physics course work. The reason this interest has lingered? It is such a diverse field, full of discovery. There are discoveries about the universe and how it works, but there are also the technological innovations that will change the way we live. Wi-Fi, for example, was discovered/uncovered/first used by radio astronomers in Australia.

Are there many journalists covering the science or/and technology beats?

There are not that many science journalists in South Africa. For the most part, it is science married with health or environment. One of the best science journalists that I know of is Tamar Kahn, Business Day’s science and health editor.

I cover areas such as satellites, nuclear, astronomy, pure scientific research, industrial research and technology, as well as the innovation and research space in South Africa as a whole.

How did the idea for writing Searching the African Skies come about?

I wanted to write the story of the SKA in my voice, in my style, the way that I wanted to tell it. Newspapers didn’t have the space and Business Day also has a very specific style 18

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and register. I was at the right place at the right time.

SKA sounds amazing – is it an actual kilometre in the Karoo? What towns are nearest?

The square kilometre refers to the collecting area of the SKA. If you link a whole lot of radio telescopes together they combine to effectively make one big radio telescope you’re adding all the surfaces of the dishes together and this equals a square kilometre. The closest town is Carnarvon, about 80km away from the SKA core site.

Sutherland has been at the heart of SA astronomy. Is astronomy tourism increasing?

From what I understand, there are plans to create an astronomy tourism route

Listening to the Southern skies cuLTure

Who bears the cost of the SKA project?

The international SKA Organisation is the consortium that will be building the SKA. Member countries buy-in to be a part of the organisation, and it will be funded through that.

So are there habitable planets?

We have already found a number of habitable planets. New findings show that habitable planets in the Milky Way are the rule, rather than the exception.

through the Northern Cape that includes both Sutherland and Carnarvon.

How did you decide on the book’s tone, especially for those of us with no scientific backgrounds?

I wrote the book as though I was chatting to a friend. I imagined that I was telling them about this exciting project.

When does it all start happening?

The SKA hasn’t started yet. Phase one will come online in 2019, with phase two coming online in 2024. South Africa and Australia each have their precursor telescope but it will be a number of years before SKA construction starts.

The same goes for the technology – because of the split it has to be redesigned, and the technology hasn’t been decided on yet.

Of course the one that fascinates us all: could they support life?

That isn’t technically part of the science case. Habitable planets are in something called the Goldilocks Zone, where it isn’t too hot or too cold, and water can exist in liquid form. If there were habitable planets they would be able support carbon-based life.

What do you see as the next steps in radio astrology?

Well, there are plans/thoughts to put a radio telescope on the dark side of the moon.

And what’s next for you as a writer/journalist?

I’m in the middle of a university tour, looking at research on the ground in 10 South African universities. After that, I might start thinking about another book.

BOOK INFO: Publisher, Jacana Media, visit: jacana.co.za END www.southafricamag.com 19

clouds?

HeAd iN THe

The paradigm shift is towards cloud computing and it’s already well under way.

By Lourens Swanepoel, Technology infrastructure director, Avanade South Africa 20

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Cloud computing TecHNoLogy

M

obility, the consumerisation of IT, remote working and Big Data are concepts that everybody is talking about - but they are essentially all facets of one paradigm shift.

Cloud computing is a driver and enabler of each of these trends.

Cloud provides the platform for workers to use their own devices to perform their work wherever they are.

The Big Data global survey, recently released by Avanade, shows that the concept of Big Data has now moved decisively out of the IT department, with business units taking ownership of their data and how to use it effectively. For example, 95 percent of respondents no longer consider data analysts to be IT staff, with 58 percent saying data management is now embedded throughout the business.

Seventy-three percent of respondents said that they had already leveraged data to increase revenues.

Significantly, although South Africa remains very much at the beginning of this journey, Big Data is close to the top of the C-level agenda because local companies have to compete on the International stage.

Like all technology trends, the move towards leveraging Big Data comes with challenges, among them security and the difficulty of just dealing with the sheer volume. The growing number of personal devices within the enterprise is complicating things. The key shift is to be able to think in terms of services delivered through the cloud as a way to make the information available in a useful form.

When it comes to the consumerisation of IT, Avandee research from earlier in the year confirms that personal devices are indeed entering the enterprise space very strongly.

Cloud-based thinking is vital in allowing companies to deliver computing services to an increasingly heterogeneous universe of devices. Businesses can be hamstrung

by seeing their perceptions as fact.

Actually, as the research shows, the reality of IT consumerisation is often rather different from the perceptions people have.

One myth is the idea that businesses are resisting the move.

However, the research shows that businesses are in fact embracing the change, with 73 percent of C-level executives reporting that the growing use of employee-owned technology is a top priority. An overwhelming majority believe that their companies have the right resources to manage the process.

The research showed that mobile devices are already being used for more than just e-mail - collaboration, customer relationship management and enterprise resource planning applications and data are being accessed. Clearly, making all of this available to employees’ devices demands utility-like computing via the cloud, with Software as a Service (SaaS) playing a significant role.

It’s worth noting that the security concerns noted in the Big Data research are echoed in this research. Many employees believe that consumer devices with builtin security are safe for enterprise work, but 55 percent of respondents have already experienced a security breach as a direct result of the consumerisation of corporate IT. Taking advantage of the productivity benefits of the work anywhere, anytime philosophy requires CIOs to start thinking in terms of cloud, and the paradigm shift for them is actually not so large. In Avanade’s experience, local companies are not far behind their peers internationally in the drive to rationalise the amount of IT assets they own and manage. END www.southafricamag.com 21

The

iNTroduciNg

Guy‌

By providing superior service and establishing close relationships with its clients The Courier Guy is now an established courier company offering a range of local, national and international services.

By ian Armitage

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www.southafricamag.com

The Courier Guy BuSiNeSS

t

he Courier Guy is one of South Africa’s fastest growing courier brands. Formed in 2000 as a local same-day parcel and document service the business has grown considerably, now offering a wide range of local, national and international courier services. It has established franchises in Gauteng, KZN, and the Eastern and Western Cape and is actively recruiting franchisees to extend its footprint.

“We operate a Man-In-The-Van model,” says franchise director Helga Steenkamp. “We believe that owner-operators deliver better results and so we use this franchise model to expand the footprint of our brand.

“The concept means franchisees do not need premises and that the start-up and running costs are low – there is no need to set up and office, you work out of the depot and your vehicle. All parcels and documents that come in via our national network of hubs and outgoing parcels for national or international delivery are stored at the depot. This is then coordinated with the Man-In-Van franchisees by the operation teams in the depots and delivered. The Courier Guy franchisees are the actual couriers. They operate from the depot and usually start out with one vehicle in the area until there is an opportunity to expand.

A franchisee has a demarcated area that and has the exclusive rights to that area absolute exclusivity.”

To assist a new franchisee in a new area the franchisee “will automatically take over the existing client base in his exclusive use area. A guaranteed supplementary income of R25,000 pm for the first 12 months will provided further assistance, provided all terms and conditions of the franchise agreement are complied with,” Steenkamp says, adding that this kind of assistance “will ensure that a new Franchisee focuses on growing the business” while the dayto-day expenses are taken care of. “When a franchisee starts off the daily task, they

first of all do collections and deliveries in his exclusive use area and then grow that business by securing new customers. This is done with by our area managers. There’s usually one area manager that will service five franchisees. It is a requirement that a set amount of leads or prospective clients be brought in every month. A lead is someone that shows interest in our services and the franchisee passes that info on to the area manger. The area manager will then endeavour to do what they can to open an account for that customer so that they can then start trading in the franchisee’s area.

The customer has a choice of a pre-paid account system they can use or they can open a 30-day trading account, which is what the larger corporate companies usually prefer to do. The area manager goes at no cost of the franchisee; it’s a cost that the

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franchiser will carry. The area manager also works on a commission incentive basis.

Franchisees are paid for all parcels that they collect and deliver in the area and then we also look at the total amount of turnover that’s generated by our customers in the franchisee’s exclusive use area and we pay our franchisees a commission on that.

“The bigger the turnover becomes, the bigger slice of the pie that the franchisees earns so it’s not just the collection and delivery of packages but it’s also forging that really close relationship with the customer which always stimulates increased business. The whole reason why we decided to go the franchise way was to put the personal touch back into the business. Drivers move around quite often, but with a franchisee’s dedicated team there’s not that movement of staff. Our customers become used to the people that serve them on a regular basis and therefore the franchisee get’s to know their customers on a personal level. This is very important to us. Once you have that relationship, it’s easy to exert yourself and go out of your way for your customers. Word of mouth is an amazing thing and contributes a lot to growth.”

Franchisees are given superb support – The Courier Guy head office 24

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support team includes a franchise manager, a training manager, operations manager, customer services manager and area managers and support staff. It is a solid support structure.

The support services provided includes a fully equipped depot, centralised administration and invoicing facilities, debtors control and parcel tracking.

Franchisees also attend an intensive two-week induction programme before they commence business operation.

The programme covers franchise and business management skills, operational procedures, customer relationship management and business skills.

“Franchisees concentrate on servicing an area, keeping customers happy and growing the business.

We do all the behind the scenes work. Franchisees are paid for every collection and delivery that they do

and all commercial turnover that’s generated, even if their customers have not paid their accounts because the franchisee ultimately renders us a service and that is what we pay them for.”

The Courier Guy’s national master franchise is in Johannesburg and there are regional depots in Durban, Cape Town and Port Elizabeth.

“Franchisees work and operate out of our depots and they will collect from 7am in the morning.

Freight comes in overnight, is collected at 4am and scanned and sorted into the Franchisees areas.

When Franchisees come in they load freight on to their vehicles and off they go.

Customers call the national call centre when they want to place a collection, the collection is then placed on the software system and our operations department will then allocate collections to franchisees. They all have handheld devices so

The Courier Guy BuSiNeSS

once you have that relationship it’s easy to exert yourself and go out of your way for your customers. word of mouth is an amazing thing and contributes a lot to growth

it means they can collect as they are delivering. The operations department is in touch with franchisees on a very regular basis. We can see if a driver is running into trouble and give them assistance.

“Also, when a franchisee comes through a delivery point and someone isn’t there or they have difficulty finding a person, they would then not attempt to phone the client or the person they’re delivering to, but they would contact the depot or the operations department who would then try to find out what the problem is and give them further instruction.

Our franchisees come back at lunchtime for a swap-over and then they go out again in the afternoon. In the evening when they bring the freight that they’ve collected back, the franchisees leave and we have a warehouse team that starts consolidating all the national freight. We have an overnight service, an airfreight service and then a national domestic road freight service and an international service.

“Without us providing that service, a franchisee would only be able to collect a parcel from a customer.”

The services offered

by The Courier Guy franchisees include a same day service, local same day express, local late express same day, local same day

economy, local overnight economy, overnight courier, normal air, economy as well as international exports and imports.

Any business or person can be a customer – from the sole proprietor operating from home to corporate companies who require an in-house operation and hands over all logistical functions to the company.

Steenkamp wants to further extend The Courier Guy’s footprint.

“We ran a competition along with the International Franchise Expo and the South African Franchise Association where we were gave away a franchise opportunity to a potential franchisee and the winner is being announced soon,” she says.

“In terms of inquiries there is a buzz in the industry over The Courier Guy and we have daily inquiries.; I’m still getting emails from people who visited the IFE, asking about being part of The Courier Guy franchise. We’re very optimistic and we think that it’s going to be a great year for us.”

Helga is currently in negotiations with six potential franchisees and is eyeing more.

To learn more about The Courier Guy and to find out about franchising opportunities visit www.thecourierguy.co.za. www.southafricamag.com 25

Fuelling fuTure geNerATioNS

South Africa Magazine talks to Bonang Mohale, country chairman & general Manager of commercial for Shell South Africa.

By ian Armitage

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www.southafricamag.com

Shell South Africa COVER fOCuS eNergy

S

hell South Africa has a plan.

It’s a plan that would not only be hugely beneficial for the company itself but the country as a whole. It would positively impact each and every South African.

But there’s a catch.

It all hinges on shale gas.

The South African Government has imposed a moratorium on any new exploration until the potential impact of its extraction process, known as fracking, can be better understood.

What’s the problem?

Fracking involves pumping a mixture of water, sand and chemicals at high pressure down a borehole into the rock strata containing the shale gas. The process releases the gas, which flows out up the borehole to the surface, where it is captured and contained.

Critics say fracking leads to contaminated water supplies and causes earthquakes we’ve all seen the YouTube footage of an American man lighting a matchstick up to a running kitchen tap, turning it into a blowtorch.

Shell wants to extract shale from the Karoo. The Basin is thought to have large shale gas reserves and there are three main shale areas within the basin: the Prince Albert Shale, the Whitehill Shale and the Collingham Shale.

Shell’s application covers 90,000m2.

Environmentalists say the region is too dry and water reserves are too precious.

The media has jumped all over it.

Bonang Mohale is adamant that the process is safe and says Shell “would never compete with residents for their fresh water”.

He says loathe it or not, a shift to massive production of shale gas would blunt the spectacular rise of carbon dioxide emissions and secure South Africa’s energy future.

According to South Africa’s Department of Energy’s Integrated Resource Plan 2010-2030, the country needs more than 50GW of new electricity generation.

Shale gas, should it be found in viable quantities, would help meet that target.

Shale gas would also create thousands of jobs in what would be a brand new industry.

“Some 10 million South Africans have no access to electricity; 10 million out of the 50 million people in the

country. There is a huge gap in energy supply and the country will have to invest in all types of energy sources to fill that, from coal, to gas, to nuclear and to renewables.

In our view, the case for natural gas is compelling.

A modern natural gas plant emits half the carbon dioxide of a modern coal plant and up to 70 percent less than a decades-old steam turbine coal plant.

“A study conducted on Shell’s behalf by leading South African economic consulting firm Econometrix focuses on two scenarios: the successful extraction of 20 tcf and 50 tcf of the estimated shale gas reserves in the Karoo. This would translate into a GDP contribution of around 3.3 percent to 9.6 percent.

Based on those numbers fracking could add between R80 billion and R200 billion to the country’s yearly GDP. “The study further highlights that, based on the 20 and 50 tcf scenarios, as many as 300,000-700,000 www.southafricamag.com 27

Shell South Africa COVER focus ENERGY

permanent jobs could be created over a period of 25 years, which is the expected lifetime of an initial first phase shale gas development.

“The government has outlined plans to eliminate poverty, reduce inequality and deliver energy to South Africans. There is a real case for commencing exploration and finding out if the gas does exist under the Karoo.

But, as with everything else in business, there are challenges. South Africa has very strict environmental regulations and legislation.

And for us as an industry, we must mitigate those challenges by continuing to maintain the very highest operational standards. Also, for each part of the process, specific environmental impact assessments must be undertaken.”

Shell has and is currently consulting with experts, industry specialists and with the people in the Karoo.

It is important to Shell to understand the concerns and questions people have about the project.

Should Shell be granted an exploration license, it will conduct an extensive Environmental Social and health Impact Assessment (ESHIA).

Only once the Department of Environmental Affairs has approved the ESHIA will the first wells be drilled, Mohale 28

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says. “During the ESHIA process, the Karoo residents will have many opportunities to provide input into the project and their opinions and concerns will influence and inform the project.

“The Energy Information Administration has estimated the shale gas resources in South Africa to be around 485 tcf. Seismic testing will give Shell more information on the geology of the Karoo Basin and will assist in selecting the areas to explore. Only once the seismic testing and ESHIA has been completed, will the final drill sites be selected.

“We recognise that there are concerns and we are doing all we can in that respect.

“We believe that any shale gas exploration and production must only occur in a socially and environmentally responsible manner. Anything less is unacceptable. Our aspiration is to have local communities,

G4S The security of key energy resources is fundamental to our welfare and prosperity.

G4S has extensive experience of working with the world’s leading oil & gas companies and is a proud security service provider not only to Shell in South Africa, but our integrated services are extended to Shell right across the globe.

Our customers trust us as a key partner with the expertise and resources to secure assets throughout their lifecycle, from exploration right through to final divesture.

By understanding the wider challenges of oil & gas industry protection, G4S is able to draw on our expertise, proven capabilities in risk assessment and intelligence, logistics, endto-end project management and integrated technology solutions to deliver effective, comprehensive security solutions.

While you take time out to chill, let us take care of your haven We often envy our feathered friends’ freedom to come and go as they please. Be honest, wouldn’t you also enjoy lounging by the pool whenever you feel like it?

At Aon we realise that worldly possessions do not take the stress out of life. It’s what you do with them that does: like spending quality time with your kids in the garden or hearing your daughter read her first book on the patio. We use our unique insight to design Household and Motor Insurance that takes care of your material success, allowing you the freedom to focus on the important things in life.

Contact us on 0860 100 404 or quoteme@aon.co.za.

Alternatively, SMS “Home” to 31762 and we will call you back.

Put our years of experience, specialist capabilities and passion to the test.

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underwritten by

Shell South Africa COVER fOCuS eNergy

environmentalists, representatives of the tourism industry and the national government work together to develop the Karoo as a vital gas resource in a sustainable manner. We believe South Africa has a chance to show the world how it’s best done.”

Shell has made commitments not to compete with residents of the Karoo for their fresh water.

For the initial exploration wells it intends to import the water by truck or rail.

“Once exploration drilling has commenced Shell will know whether deeper brackish water aquifers (water that is unsuitable for human or animal consumption) are available for use in our operations,” Mohale says.

The ’Karoo Groundwater Atlas’ was commissioned by Shell in 2011 and draws on some of the country’s top hydro geologists who bring more than 250 years of Karoo-specific groundwater experience.

“Essentially, the Atlas identifies the attributes of the Karoo groundwater 32

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resources, combining data from many different sources into a single database. It concludes that groundwater systems up to 300 metres below the surface are well understood, and highlights that groundwater is a renewable resource that should be considered for all water requirements.

“It is clear that further work is required to understand the water systems in deeper geological horizons. The experts also note that, historically, methane gas has already been recorded to occur naturally in groundwater derived from existing shallow boreholes (those less than 150m deep) in the Karoo.

“Water is a scarce commodity in the Karoo but is also key to our operations. The wells we plan to drill require the equivalent of two to three municipal swimming pools of water per well. The entire 24-well exploration project requires in the order of 60 pools of water in total.”

Mohale says that Shell will be able to further reduce its environmental footprint by capturing and reusing the water that comes back out of the ground after the hydraulic fracturing process.

“Regarding the risk of contamination, a recent study by the US Energy Department has looked into the issue and confirmed that when a well is designed and constructed correctly, applying the best drilling standards and practices, groundwater will not be contaminated. We anticipate drilling no more than 24 wells in total at the cost of around $200 million.”

Mohale, who joined Shell on 1 January 2009, has been at the helm

Adding Insurance to Employee Benefits Entrenches Staff Loyalty Shell South Africa engaged with Aon South Africa to develop a comprehensive employee group scheme (EGS) covering short term insurance for their employees’ household and vehicle insurance needs.

“Competitive organisations like Shell realise the value in adding to the fundamental benefits packages that include healthcare, retirement and often disability insurance, with added benefits such as short-term insurance for employees’ personal needs,” explains Mandy Barrett, Employee Group Scheme Specialist at Aon South Africa.

“It basically comes down to the issue of employer/employee relations on a broader front than the traditional benefits scenario, which have long been a given. A company that provides staff with access, via group schemes, to enhanced short term insurance benefits beyond those available to the individual employee in the open market, is seen as a company that commands loyalty and is indeed an employer of choice,” explains Mandy Barrett.

“In today’s financial and business climate consumers are under enormous financial stress.

They remain heavily indebted and their disposable income is under pressure, despite figures showing the situation is easing. The reality is that the cost of living continues to rise alarmingly, petrol prices are increasing dramatically and this is expected to have an upward impact in inflation.

“Moreover, skills shortages remain the biggest challenge for most businesses and the cost of recruitment and training is significant. This does not begin to touch on the less definable costs of lost productivity and possible impacts on corporate image resulting from inexperienced staff as a result of high staff turnover. In this scenario, employee stability is paramount and part of

this stability has to do with the overall financial wellbeing of the employee, which has direct and indirect impacts on corporate viability.

“The advantages to employees via group short term schemes are substantial. Key among these is the purchasing ‘muscle’ they bring to the equation, resulting in attractive premiums, wider covers and negotiating ‘clout’ with the underwriters when it comes to claims.

“The important consideration in the EGS scenario is that the insurance that’s offered has to be of quality and not mass-market, commoditised products. At Aon, we don’t take a one-size-fitsall approach. As a broker, we have access to an extensive and diverse range of insurance products to meet the needs of all individuals within the employer base. We approach each person on the basis of an individual client needs analysis, identifying the employee’s specific risk profile and insurance needs and then respond with an appropriate insurance product to meet those needs.

“Then there is the issue of support for the employer, encompassing marketing material which can be co-branded with the sponsoring company, informative workshops for employees, on site help desks, group presentations and so on, all under the control of a dedicated account manager.

“It all forms part of the bigger picture of staff stability and that in turn means less staff churn, lower recruitment and retraining costs and a more productive business in general where efficiencies and productivity derive from longer serving employees familiar with the workings of the company and who are inspired to perform by the reinforcement that management is concerned for their wellbeing beyond the factory or office doors,” concludes Mandy.

In our view, the case for natural gas is compelling. A modern natural gas plant emits half the carbon dioxide of a modern coal plant and up to 70 percent less than a decades-old steam turbine coal plant

of the South African company during one of its most challenging periods to date – with the global economic recession having a profound impact on the oil industry.

So he is not afraid of hard work.

Oil prices peaked at about $147, then halved from over $120 a barrel the previous year to just below $60 per barrel in the middle of 2009.

Against this backdrop, Shell revised its short-term strategy.

“The recession led to the market for our products declining, while our margins remained under severe pressure. The matter needed to be addressed with great urgency hence the emphasis on cost management.”

Mohale set new targets for his leadership team to ensure the company survived the recession and was able to take full advantage of an anticipated economic upswing.

“Each Shell business and support function had to implement specific cost saving 34

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measures,” he says. “We implemented a freeze on all non-contractual spend – unless it was Health, Safety, Security and Environment (HSSE) or business critical. We also placed a moratorium on most business travel and regrettably had to reduce our headcount.”

The Retail business made deep cuts to its marketing budget by reducing sponsorship activities and exploring synergies across the different businesses to integrate marketing campaigns. The business also re-negotiated agency retainer fees to reduce costs.

The Commercial business launched an asset-neutral project to improve competiveness and also expanded its Deliver for Own Account (DFOA) model whereby a Shell distributor delivers product to customers on a commission basis.

The Supply and Distribution business set about renegotiating all its primary road transport contracts, while simultaneously reducing its vehicle fleet.

Shell South Africa COVER fOCuS eNergy

“It was a gruelling period,” says Mohale.

For almost four years Shell South Africa has been implementing Downstream-One, a global project that introduces simplified processes and systems.

The new system, which includes a SAP platform, went live on 1 October 2009.

“We’ve very happy with our achievements,” Mohale says.

“Our downstream business as it stands is probably in the top ten of Royal Dutch Shell’s global downstream operations. That’s out of something like 104 countries.

“We are very excited because we really believe we have an opportunity to use the attention that we are getting as a result of the Karoo project to create an entirely new business in terms of exploration and production.”

Mohale cautions that as significant as the achievements are, complacency must never be allowed to creep in. “Our competitors will do their best to match our successes. But let me assure you, Shell people – as always – are up to the challenge.”

Shell began operating in South Africa well over a century ago, initially trading in paraffin and kerosene to bring both heat and light to communities of Southern Africa.

Its presence has been inextricably tied to the country’s industrialisation, infrastructure development and the increased use of transportation.

Shell operates a number of oil-related businesses in South Africa including fuel retailing, chemicals, aviation, lubricants, commercial fuels and bitumen.

The company has a market share of around 20 percent and also refines crude oil through the 180,000-barrels per day SAPREF refinery, South Africa’s largest oil refinery, jointly owned by Shell and BP. Located in Durban, SAPREF contributes about nine percent to South Africa’s GDP. Mohale is confident it’ll be a bright future for Shell, South Africa and the region. “The operating environment is tough and highly competitive but our people have the requisite expertise, acumen and can-do attitude to rise to the challenge and ensure Shell remains South Africa’s leading energy company.

“We want to be the world’s most innovative and competitive company.”

To learn more visit www.shell.com. END

www.southafricamag.com 35

goods deLiVeriNg

A

frica is full of opportunity and in recent years has become increasingly attractive for multi-national companies and SMEs alike. It’s almost as if a ‘come and get me’ plea has been issued.

Like most things in life though, it isn’t always that simple.

Africa’s weak transport infrastructure is one of several challenges of operating on the continent.

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However managing this and the continent’s other difficulties are not impossible.

That’s certainly the view of Charles Brewer the managing director for subSaharan Africa at logistics company DHL Express.

DHL is the continent’s leading logistics provider. It has been in Africa for 34 years with operations in 52 countries.

It offers expertise in express, air and ocean freight, overland transport,

THe

DHL Express SSA fOCuS LogiSTicS

South Africa Magazine chats to charles Brewer the managing director of DHL Express SSA about Africa’s opportunities and challenges.

By ian Armitage

contract logistics solutions, as well as international mail services combined with worldwide coverage and in-depth understanding of local markets.

It essentially helps us all do business better.

That’s a fact.

“If you want to operate in Africa there is a degree of uncertainty, there is a degree of risk, and you need to know how to manage that.

It is not unmanageable,” Brewer says. “If you look

at the amount of trade that actually stays in Africa it is less than 30 percent. If you look at the amount of trade that stays in Asia-Pacific or in the Americas or Europe it’s much more like 70 percent. So doing business intra-Africa is actually more difficult in some cases than doing business out of Africa from China, India or from any other market outside of Africa. That’s driven by a number of things. The infrastructure in the customs

if you want to operate in Africa there is a degree of uncertainty, there is a degree of risk, and you need to know how to manage that

www.southafricamag.com 37

DHL Express SSA fOCuS LogiSTicS

environment can be very challenging and very testing in certain countries across Africa. That’s because sub-Saharan Africa has 52 different countries, and each of those countries operates very differently. Compounding this is 52 different customs authorities; all of which work very uniquely. If you are a multi-national company or even an SME operating in a challenging environment, be that customs, political or infrastructural, it is very, very difficult to get your products in or indeed get your products out.”

Africa is of increasing importance for DHL, which is the only major courier to wholly own facilities in every African nation.

It has recognised that it can play a significant role in accelerating Africa’s

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development. After all, says Brewer, exploration, production and building of infrastructure, for instance, cannot evolve and grow without a reliable and vibrant logistics provider.

“DHL is completely committed to supporting all its markets and clients and helping them compete in a competitive world. Africa is a growth market for all of us,” he says.

So what is DHL doing?

“The logistics industry is highly technologically driven and we’ve invested in the obvious things like state-ofthe-art hand scanners that at a swipe of a button transmits time critical data throughout the world; from South Africa to Spain, Switzerland, Sweden or any of the 220 countries we operate in,” Brewer says.

Smart Spaces As technology partner to DHL SSA, Smart Spaces took into account the diversity of their core business, combined with the fast service synonymous to DHL, and developed a custom solution for their flagship offices in Cape Town.

From entering the reception, right through to the staff pause area, you are greeted with ambient music and large visual displays, featuring content DHL decides for that day, all seamlessly integrated into the décor and independently controlled.

The main hub is the state of the art boardroom. The two large screens and drop down projector screen allow them to synchronise, view and interact with various sources of information simultaneously. This allows full flexibility for a magnitude of operational scenarios. HD Video Conferencing connects the SSA hub with partners all over the globe. The controls are user friendly with pre-set scenarios or for advanced alternatives, custom control options allow power users to operate the system all from the intuitive and stylish mobile touch screen.

0027 21 551 0645

info@smartspaces.co.za

www.smartspaces.co.za

At Smart Spaces we live by the definition that technology, loosely defined, is the branch of knowledge that deals with the creation and use of technical means and their interrelation with life, society, and the environment.

Smart Spaces offer a variety of technological systems, not only interacting with your daily life but enriching it.

All solutions are implemented in such a way to compliment your daily activities, boost productivity, save you money and even keep you safe.

We service both corporate and residential markets, making your office or home more user and environmentally friendly. We implement lighting solutions, heating, ventilation and air conditioning control, distributed audio and video systems, CCTV and alarms as well as video conferencing and dedicated cinema rooms. All these are completely integrated in easy to use interfaces on a wide range of touch screens; iPad’s and even your TV or smart phone.

Our team of designers, installers and programmers are all geared towards achieving perfection in every system we provide. From the start of any project, we keep you, the end user, in mind and closely work with architects, interior designers and consulting engineers to converge all your technology in a seamless solution.

To keep all our staff up to date, we attend regular training courses and are affiliated Cedia (Custom Electronic Design & Installation Association) members.

By joining forces with Smart Spaces, you can rest assured that your home and business is receiving cutting edge technology to keep you in control.

Perhaps most significantly of all however, in November last year, DHL opened its new sub-Saharan African quality control centre (QCC) in South Africa.

The centre, which is located at DHL’s Express in Johannesburg office, is one of a series of investments planned by DHL Express in Africa.

“It links sub Saharan Africa to the world via our global quality control centres in Bonn, Singapore (servicing Asia Pacific), Leipzig (servicing Europe) and Cincinnati (servicing the Americas).

“It is a great investment and will allow us to deliver a lot more certainty in what can be very challenging environment.”

At the heart of every QCC he says is a monitoring facility with eyes on the world.

“These centres enable us to manage shipments proactively on a real time basis from start to finish, taking decisive action when necessary to ensure their fast and secure delivery.

“Due to the pace of growth in key emerging markets such as Africa, the need for a quality control centre here – to monitor both the day-today movement of all goods as well as to manage crises as and when they happen – was evident.

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“Simplistically, staff at hubs in Johannesburg, Lagos and Nairobi, wherever, rely on information from this centre. Quality control centres are also able to track shipments from collection to delivery, including export, flight and customs clearance; it just mitigates potential problems that will impact the speed of delivery of a shipment whether that is adverse weather conditions, natural disasters, political unrest or infrastructure breakdown. It doesn’t matter what the factor is.

“If you think of mission critical industries like oil, energy or pharmaceuticals, whatever it is, this is a huge boost.

“By default in this industry things do and can happen and how you manage that is what makes the difference. We’re better able to manage that now.

“It is yet another example of our commitment to Africa.”

This isn’t the end of things; the coming year will see further investment in both facilities and vehicles according to Brewer.

“Africa is a hugely developing market and one thing it does call for is a huge amount of dynamism. Where you plan to invest

DHL Express SSA fOCuS LogiSTicS

over the next 12 months can change fairly dramatically. Typically our investments today and tomorrow revolve around three areas.

Planes and infrastructure is one such area.

We’re soon adding a new aircraft in Nigeria, a significant investment. We have a lot of vehicles across Africa and we’re constantly adding new vehicles. At the moment we’re looking at how we can convert our vehicles to green technology in Africa. We do that in many other parts of the world but it is just harder to do in Africa.”

He says that most recently DHL opened a new facility in Tanzania and “constantly upgrades facilities across Africa.” It has also invested in its people. “Talent development is absolutely critical. It is a developing environment and we invest in our employees to make sure that they’re the very best they can be.”

Brewer cautioned that while Africa represents a huge opportunity, it isn’t currently recording the high growth and returns businesses have enjoyed in Asia in recent years.

That said it is seeing consistent and solid growth.

“The problems in Africa now aren’t too dissimilar to those in China some years ago; not so long ago China was an absolute minefield in terms of logistics,” he says.

“Africa right now may be a slightly slower progression than what we saw in China about 10-15 years ago. But what we see is that in the next 10-15 years you will witness an increase in disposable income in Africa and that will speed things up. If you take one billion people in Africa and you accept that around 40 percent are aware of what DHL can do, and as a result of this their businesses start shipping internationally, then you can see the obvious opportunity.

How do you take the product and make it available to the 60 percent of the population who perhaps hasn’t seen DHL and they don’t know that what they do domestically they can actually do internationally? That’s the exciting opportunity!”

How has DHL managed to put itself in the driving seat in Africa? Brewer says it is a classic case of first to market.

“It is, but we’re not complacent about this and it would be a huge mistake to be so.

To the point we started here 34 years ago in Africa, we’re the only company to have dedicated aircraft and for the most part we’re the only company to have dedicated airside facility. We’re the only company to have the infrastructure whether it’s planes, vehicles or people on the ground that understand the market. That gives us a huge advantage over anybody else. There are other carriers here but they don’t have the same footprint and perhaps knowledge that DHL has. We’re very proud of that and very proud to be the market leader. We’re very proud to make sure that we’re facilitating growing African trade but it’s also about what we are doing tomorrow and it is important to invest in those key areas.”

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

END

www.southafricamag.com 41

n e w f r o nt i e r s CFAO Zambia’s managing director talks about plans to expand its Nissan distribution system.

By Ian Armitage

N

issan sees Africa as an increasingly important market and has been upping production here in South Africa for a while, its sights set on first-time buyers in emerging markets.

One of those key emerging markets is Zambia.

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The country’s only authorised Nissan distributor is CFAO and, according to it’s managing director Sue Mennell, Nissan vehicles are playing a substantial role in its continued development.

CFAO has set its sights on becoming the country’s “number one car dealer” and is currently expanding its network.

“Africa is seen as a fast-growing continent and is an increasingly important market for a number of players,” says Mennell. “Here in Zambia it is very much an exciting time.”

CFAO Zambia was established in October 2000 by French company CFAO Automotive, part of the French group Pinault Printemps Redoute (PPR), which owns luxury brands.

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

CFAO focus REtail

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

CFAO Zambia has grown from nine employees at start-up to a company that employs more than 100 people. It has headquarters in Lusaka and branches in Kitwe and Livingstone with showrooms, service workshops and parts outlets.

“We’re actually planning to expand our branch network and are looking at opening some branches further north in the Copperbelt Province where the mining community is.

“Zambia has huge mineral resources; we are looking at expanding.”

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

“We realise that many people need effective mobility. CFAO is partnering with various finance houses to offer affordable finance plans for vehicle purchase.

Since its inception CFAO has sold many new Nissan vehicles and our sales and forecasts improve every year.

“We are performing very well. Expanding the network is a priority; we need more space. We’re growing all the time. We’ve got many new customers. We sell many more vehicles. And we are

We’ve got a stronghold. Our products are reliable and trustworthy expanding rapidly on the aftersales side.

“Our UD Trucks sales have also really taken off this year.

We are looking at expanding our Truck workshop as a result. So, there’s a lot that needs to be done.”

CFAO’s models include the Navara, Pathfinder, Qashqi, NP300 Hardbody, NP200, Murano and Patrol, sourced from Thailand, Europe, South Africa and Japan.

It recently confirmed a deal with parastatal Zesco to supply 33 UD90 crane trucks and Mennell says “orders are flooding in”.

“It is looking very good. I’m very optimistic about the future.

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

“We are very optimistic.

This is a stable country, www.southafricamag.com 43

CFAO focus REtail

UD Trucks Southern Africa UD Trucks Southern Africa has enjoyed a proud history of success since its establishment in South Africa 1962, becoming the UD Trucks Corporation’s top market outside of Japan.

Over the years, the company has built a strong reputation as a credible and successful truck supplier, boasting unequalled flexibility and full backing from the UD Trucks Corporation in Japan.

which is attracting investment and has strong mining potential, as well as strong tourism and a very strong agricultural industry. We have a growing middle-class and demand is increasing month on month. Zambia is going places for sure.

“We’ve got a lot of expansion and development in the pipeline, some ongoing, and others in planning.

We’re currently putting in a new express service facility to service vehicles faster, a state-of-the-art body shop, and bigger workshops for both passenger cars and trucks, and we’re obviously opening branches in the north. There is a lot going on.”

Nissan cars and UD Trucks are only part of the CFAO story. It is also an authorized distributor for FG Wilson generators.

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“The demand is there and we recently received a consignment of various sized generators. We’ve already installed some and we’re pushing to expand on sales and aftersales for the generators.”

All in all, things are looking good.

“We’ve got a stronghold.

Our products are reliable and trustworthy; everybody knows them and you get a lot of customers who are faithful to the Nissan brand. It is a strong brand and we’re getting new models coming in – we launched the Almera earlier this year for example and we’ve got the new Patrol being launched in 2013. Things are changing. New models are coming out all the time and customers are excited about it.”

To learn more visit www. cfao-zambia.com/nissan END

Now in 2012, UD Trucks Southern Africa is once again moving the benchmark higher with the launch of the new generation Quon extra heavy range. The company is resolved to offer only vehicles engineered, developed and rigorously tested to meet the harsh operating conditions in the region.

The local company is also responsible for UD Trucks’ exports into 12 countries in sub-Saharan Africa, and both right and left hand drive variants will be introduced into the region according to each territory’s market requirements. UD Trucks Southern Africa will continue to develop its footprint in the African market wherever fleets can benefit from its efficient design, state-of-the art technology, quality assembly and dependable support.

Moving into the future as the company build on its proud legacy, UD Trucks will continually aim to fulfil its core values; to be Professional, Passionate and Dependable in every aspect of its business.

For more information, visit www.udtrucks.co.za

UD Trucks Southern Africa proudly associated with CFAO Zambia since 2001 Executive Director Susan Menne smennel@cfao.com | +260 (0) 211 243 112

Sales Manager George Roberts groberts@cfao.com | +260 (0) 211 240 765 Product shown in photograph is for illustration purposes only, and is subject to stock availability.

Plot 9558, corner Sheki Sheki Road & Great North Rd, Emmasdale, Lusaka, Zambia

www.cfaogroup.com

Professional, Passionate, Dependable www.udtrucks.co.za

iNSide ZAMBiA’S

SeCUrItY InDUStrY

Stewart Scott managing director at G4S Secure Solutions Zambia says better regulation is needed to create a level playing field and a healthier security industry.

By ian Armitage

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G4S Secure Solutions Zambia focus SECURITY

G

4S is the leading provider of security solutions in Zambia and is the only international security solutions provider in the country. It operates 13 branches (Lusaka, Kitwe, Ndola, Chingola, Chambishi, Mufulira, Chililabombwe, Mpongwe, Mazabuka, Livingstone, Chipata, Solwezi and Kabwe) in all 10 provinces and offers a wide range of security products and services.

I asked Stewart Scott to tell me more…

You’ve described the current environment in Zambia as “challenging”. What do you mean by that?

The security industry here has evolved over the years. In the past there were no more than a handful of players. At present there are well over 100 registered security companies in the country. This situation poses a significant challenge. It requires that we continually reinvent ourselves in a bid to differentiate ourselves from our competitors both as a unique brand in country and in the products and services we offer to the market.

The lack of regulation in the industry sector has resulted in our exposure as a business to less ethical competitive pressures and the reputation of the industry sector is under pressure due to low levels of staff remuneration and poor working conditions.

It is not uncommon for the more ethical operators in country, including G4S, to be tarred with the same brush.

G4S Secure Solutions (Zambia) Limited is a highly regulated operation through adherence to internal minimum standards both locally and internationally through our group structure. We pride ourselves in being a fair, equitable and morally upstanding employer, our employees are treated with the utmost respect and our executive team is always looking to improve our service offering through enhanced employee conditions and relations.

The challenge in this regard is that there is a significant additional cost associated with the management and running of an ethically and morally upstanding business, a cost that a significant number of players in the security industry in Zambia are not exposed to.

Why is it challenging? And what challenges do you face exactly?

The challenges are several in an economy such as ours, ranging from an uneven competitive environment in terms of price to market, to limited product differentiation at face value and exposure to an ever increasing cost base in terms of the human resource.

However, amongst our top ranking concerns as a company is the fact that the security industry is not regulated in Zambia. Whilst we as G4S embrace healthy competition we are of the considered view that the industry sector must be regulated in a bid to level the playing field and to drive enhanced levels of equitable competition in the market place.

This will pave the way for the establishment of sector-based minimum standards and ensure the sustainability of the industry sector moving forward. www.southafricamag.com 47

G4S Secure Solutions Zambia focus security

How are you responding to that?

The team and myself are constantly evaluating our market position in light of the challenges, meeting routinely to re-strategise our approach and to measure progress against our internal objectives.

The underlying objective of the business executive is to remain relevant in terms of our service offering and to ensure that service quality and value for money remain our key considerations in terms of the offering to our client base and the market in general.

We recognise the critical nature of the challenges we face and the need to address and resolve these challenges in the short-term, more so as a result of the imminent potential for the situation to further degenerate to inoperable levels if left unaddressed.

In keeping with this, G4S in Zambia, alongside various competitors, is pioneering the reestablishment of the Zambia Security Industry Association. Whilst this undertaking is challenging, significant progress has been made and all stakeholders are aligned to both the immediate need for regulation and to assist in achieving this objective.

The interim challenge for G4S in Zambia remains the competitive environment and the markets sensitivity to price. G4S Zambia believes that the key differentiator in the market place remains service quality. The management team and business executive are therefore constantly focused on the need to provide all of our clients with services that meet and or exceed quality expectations.

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Please don’t get me wrong, we are not without our faults and failings, but we pride ourselves on our ability to respond to any adverse incident in a timely and professional manner and in our ability to correct the service shortcoming on a sustainable basis. We therefore pride ourselves on our employees, their drive and ability to effectively service our client needs.

We are currently evaluating our ability to provide bundled security solutions in a bid to heighten efficiency levels whilst driving the proverbial ‘’more bang for our clients buck’’.

The need to drive our value for money proposition remains key to our addressing these challenges head on.

At management level you’ve been working on leadership development. How is that helping?

That is correct. I am a great believer in leadership and teamwork being the underlying success factors of any business. The need to align the executive team, develop our leadership quotient and revisit the fundamentals of the team was a fairly obvious need in terms of the Zambian business and its future success.

The leadership programme has been immensely successful - one team aligned in vision and objective, more effectively leading and managing the business as a team. Buy-in at all levels of the business has been evident and this newly adopted “leadership” culture is infectious.

Professional. Diverse. Reliable.

Sizwe IT has a national footprint with subsidiaries in all nine provinces across South Africa, providing clients with customised technology solutions.

We are committed to transformation and Broad Based Black Economic Empowerment. As the partner of choice for leading organisations who have benefited from our reliability and diverse range of ICT infrastructure solutions since 2001, we have been awarded the 2012 Cisco Gold Partner Award. Sizwe IT specializes in Information Communication Technology Infrastructure, Networks & Integration, Data Centres and Servers, End User Services, Managed Services, Software & Applications and Consultancy.

Delivering Excellence Together Member of the ConvergeNet Group

www.convergenet.com

Have performance levels spiked as a result?

Yes, employee performance levels are certainly on the up and we continue to see improvements in this regard. The business performance in general is on a sustained path of improvement year-on-year.

Although a challenging market is private security a growing industry in Zambia?

Yes the private security industry has grown extensively year-on-year for as long as we can remember.

The security industry will become more and more critical as a service requirement in country.

Demand is most evident from the mining and telecoms sectors, mostly attributable to new in country investment. However, as the government streamlines its spend, the opportunities in terms of security services being provided to the public sector will, in our opinion, become a significant opportunity in the short- to medium-term.

In South Africa we’ve seen a move away from manned security to technology. Is something similar afoot in Zambia?

This is the trend in Zambia. Every business is looking at improved ways of doing things in an efficient and cost effective manner.

Technology presents huge potential to reduce our cost base and drive down cost to customer.

Technology in our opinion will form the basis of the future of security in Zambia but we do run a risk of forming an over-reliance on it.

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Tell me about the legislative environment. Is government policy changing? How so?

Government legislation is a topic much discussed in Zambia at the moment. The new government in Zambia has introduced various changes to the legislation that have challenged convention and have posed various difficulties for the private sector in Zambia, G4S being no exception.

The general consensus in country is that the challenges created through these changes in legislation will be short lived and there is nothing that can’t be resolved through dialogue and effective planning.

G4S in Zambia remains confident that the current legislative environment will foster future sustainable investment in the country and G4S is in Zambia to stay.

G4S Secure Solutions Zambia fOCuS SecuriTy

What are your plans for the future?

Our future plans and goals are basically a lot more of what we are already doing, only better. We believe that our strategy remains viable moving forward and our intention is to continue to strive towards our objectives. The management team needs to remain aware of our shortcomings as a business and continue to drive higher levels of compliance and reduce our failings on a sustainable basis.

The G4S market strategy can be surmised in one sentence, ‘’promote market awareness of G4S and our capability and deliver on our promises’’.

Technology presents huge potential to reduce our cost base and drive down cost to customer.

Technology in our opinion will form the basis of the future of security in Zambia but we do run a risk of forming an overreliance on it

That’s very impressive. What do you believe is the key to the company’s success?

As a business we believe that we are well positioned in the Zambian market. We attribute our success to being part of the global G4S brand. In country we are confident in our people and the levels of expertise.

The secret of our ongoing success we believe lies in our dedication to our clients, our thirst for constant improvement in our business and in the services and products we provide and in the fact that we are aligned as a team.

I couldn’t leave without asking you about the much-publicised Olympics fiasco.

Has the whole debacle dealt a blow to the company’s global reputation and has it affected you in Zambia?

In terms of the affect on our operation, I can’t honestly say it has had any effect.

Our clients expect that we will continue to provide them with the services they have enjoyed historically and the management team remains focused on this. For all intents and purposes it is business as usual.

To learn more visit www.g4s.co.zm. END www.southafricamag.com 51

A clean

sweep With over 50 years experience producing eco-friendly cleaning goods in Namibia, Elso Holdings is ready to replicate that success all over Southern Africa.

By Ian Armitage

52

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Elso Holdings focus manufacturing

C

onsumers in Namibia are dealing with declining disposable income and inflationary pressures are rising.

It naturally has an effect on industry.

In the case of cleaning products manufacturer Elso it has slightly delayed expansion plans.

It hasn’t derailed them by any means, but being a sensible businessman, CEO Rene Rusch has decided to bide his time.

“We are looking to expand certainly,” he says. “We’ve secured our position as a leading manufacturer of cleaning goods in Namibia and so we’ve decided to take our success abroad.”

Over the coming decade, Rusch says, Elso plans to be present in all eight countries in Southern Africa.

“We’ll start more aggressively next year.

Because of the economic slowdown we have opted to hold off. We’ll take it slowly, but we still want to aim for Zambia next year.

“We have to produce bigger quantities to get the economies of scale so we will certainly be expanding.”

He says at the moment, consumers are buying down – opting for cheaper options.

Cheap is seldom best, however.

“They will buy it once, but if it is no good, they are

willing to pay R1 or R2 more.

That’s what we’re really seeing now.

“With inflation rising, everything is more expensive.

If you went with R100 to buy groceries today you only get one bag full. In the past you could buy more.

Electricity, petrol expenses and overall cost of living increased dramatically due to the world economic situation but wages don’t reflect that. Severe pressure for the consumer and the manufacturer makes it difficult and this where I think the problem is.”

Windhoek-based Elso is a market leader, producing several different sorts of cleaning products.

“We are the premier provider of ecologically sound, bio degradable products in Namibia,” says Rusch, who along with his wife acquired the company that has been in business for over 50 years in 1998.

“We manufacture cleaning liquid detergents and soap powders, paper products and cleaning equipment, which we supply primarily to wholesalers and retail, guesthouses/lodges and other businesses,” he explains.

The idea of producing natural products has been with Elso Holdings since its very beginning.

At the time of its founding in 1956, the elephant population in Etosha

We are the premier provider of ecologically sound, bio degradable products in Namibia

www.southafricamag.com 53

NAMPAK TISSUE Nampak Tissue is proud to be associated with Elso Holdings since its inception.

Elso Holdings structured and professional approach to its product and markets mirrors that of Nampak Tissue.

Nampak Tissue along with Elso Holdings will continue to supply high quality cost effective disposable healthcare products to the Namibian market and its Southern African contact points.

National Park was out of control and posed a threat to the park itself. After a cull to solve this problem, the elephant meat was tinned by the local meat factory, while the fat was bought up by a Mr Elmar, who then used it to produce bars of blue soap, which he stamped with the emblem of an elephant.

Some 42 years later, Elephant Soap Company became ELSO Holdings and it still uses the image of an elephant as its logo.

“We took over the company in 1998 and since the main focus for investment has been in new machinery,” Rusch says. ”This is something that is taking place on a continuing basis. When we acquired the business, everything was made by hand.

However since then the company has experienced rapid growth – far beyond even our expectations. Consequently, we have brought in new machinery that has allowed us to both speed up production and increase volumes, allowing us to cater for bigger markets. Additionally, these machines allow us to introduce different product sizes into our ranges.”

Responsiveness to customer demand is particularly important with regard to the retail sector, he adds.

“If you cannot produce the quality and 54

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quantity for these organisations at the speed they demand, they are simply not interested in doing business with you. It is however a valid point to produce quality products and packaging for the retail.

“With retail forming a major part of our customer base, it has been imperative for us to purchase these machines. Of course we are then able to apply these benefits to our other customers too.”

Over the past decade or so, Elso has invested R5 million in new machinery and Rusch says it intends to invest a further R6 million in the coming five years.

Elso’s client base is very diverse, covering virtually all industry sectors.

“In terms of retail, we sell to all the chains in the country, including Pick n Pay, OK, Woermann & Brock , Spar Group , Massmart, Metro Group and Shoprite. Along with hotels, lodges and guesthouses, these two sectors are our target markets of revenue and so our major sales focus. However, we also supply to other businesses like factories, restaurants, government institutions and so on. It is quite a mix.”

Elso has very strong roots in Namibia and in eco-friendly ethics of which it is very proud. It is these factors that Mr

Elso Holdings fOCuS MANufAcTuriNg

Personal Touch

Best advice, service & product delivery Nampak Tissue is a leading supplier of tissue, fluff & related household products in South Africa. The industrial division distributes Twinsaver Away-from-Home toilet paper, tissues, towels, wipes, soaps & dispensers to the commercial sector. Our commitment to providing best practice solutions & the highest quality standards, puts us in good stead to guide & assist those looking for comprehensive washroom solutions.

Industry leaders in the commercial, healthcare & hospitality sectors rely on Nampak Tissue for advice, service and product delivery.

And with a national footprint, many years experience and a wide range of products, you can count on us for the personal touch.

For more information, please contact the Away from Home team on 011-7997232 (tel), 011-7997296 (fax) or visit www.nampak.com/afh

Rusch believes sets the company apart from many of its competitors in the region.

“The most important thing for us is that we are a Namibian company. Also, we are very concentrated on biodegradability in our products, which preserves our heritage as a business and helps to conserve our local natural environment.

“Our company motto is ‘for a better life’, which we have incorporated into our logo. By this we mean that through our products and our manner of business, we want to provide a better life for the future of the people of Namibia and of Africa.”

This commitment to localism does come at a price, and there are a number of challenges to overcome.

“Probably the biggest problem we face is the lack of skilled labour in the local workforce,” says Rusch. “We have decided to take a proactive approach to this and solve the issue ourselves through training.”

Although he is keen to expand into new countries, Elso will not be losing its Namibian roots and heritage.

“Windhoek will remain the manufacturing base, with goods being exported to the various countries. All goods will, of course, still be guaranteed biodegradable and non-toxic.”

Being heritage focused is not a policy that always works in business, yet it is the key to Elso’s success.

Localism and environmentalism are things that we think of as new, yet they have been at the centre of this company for half a century.

Far from being stuck in the past, the management are using the history of the business as a stepping-stone for further success.

“If you’re passionate about what you do and passionate that you want to achieve something then you will be successful; working extra time, going that extra mile. If you don’t love it you won’t succeed,” Rusch concludes.

To learn more visit www.elso.com.na.

END

www.southafricamag.com 55

Invest

best i n

th e

FNB Namibia is the largest locally listed company on the Namibian Stock Exchange and the last two financial year’s has seen the Group move closer to its strategic objective of moving from the country’s preferred to the most valued financial services provider.

By Marie Toms

N

amibia’s financial services sector contributes 5.2 percent to the country’s gross domestic product. It is a vital sector, dominated by big South African institutions.

Indeed, three of the four commercial banks operating in the country - First National Bank (FNB) Namibia, Nedbank and Standard Bank Namibia - are South African owned to a significant degree.

Perhaps unsurprisingly the Namibian government is keen to increase local ownership and management within the sector, helping it achieve the country’s goal of achieving an economic growth rate of seven percent by 2030.

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“I believe decisions in the financial sector made locally are more beneficial and cater better for Namibians,” Namibia’s Finance Minister Saara Kuugongelwa-Amadhila said recently.

FNB Namibia has supported the move.

“In principle we are in agreement with the government stated objectives of transforming the financial services industry,” says Daniel Motinga, FNB Namibia Economist.

“For FNB Namibia, there is nothing new in what the Namibian government is saying, the shareholding of FirstRand in FNB Namibia was diluted from 100% in 2002 to its current level of less than 60 percent, inclusive of the public listing of the

FNB Namibia focus banking

company and a progressive BEE share scheme.”

Of course, the big thing in the banking world at the moment is tapping into the growing number of unbanked and underbanked consumers worldwide.

In Namibia several banks, FNB included, have been more aggressive in offering services and products specifically designed for the market.

“The opportunity is that you can turn a consumer with no financial services relationship into a lifelong customer and partner,” says Ian Leyenaar, FNB Namibia’s Chief Executive Officer.

According to Dixon Norval, Head of Strategic Marketing and Communications at FNB Namibia, there is increasing pressure to extend financial inclusion by offering more appropriate and affordable propositions to marginalised Namibians.

“We believe that the most effective way to do this is by means of electronic selfservice channels that are more affordable, easy to use and safe. To this end, FNB has also commenced with a variety of new initiatives, including the launch of two new products aimed at customers with an irregular income. The new Cardwise and Bankwise Zero options mean that you don’t have to pay monthly account fees and that you can still maintain

your bank account even if you earn an irregular income.”

FNB has continued with its approach to cater for niche market needs with the introduction of niche service areas such as Tourism, Agriculture, Private Clients and RMB Namibia, the latter offering a specialised unit to focus on investment banking.

According to Steve Galloway, CEO of RMB Namibia, it differentiates itself as it consists of a local team of experienced professionals in the field of investment banking.

This team has extensive advisory and arranging experience and has been involved in many of the major corporate transactions in Namibia over the last six years, offering advisory services and innovative solutions to complex transactions. Services include mergers, acquisition and disposals, listings and de-listings, corporate restructuring, including debt restructuring, strategic advice and joint ventures, capital raisings, valuations, BEE transactions, LBO transactions, equity-linked funding (convertible and exchangeable instruments), share incentive scheme structuring, share buy-back solutions and NSX Sponsor advice. This is the first of its kind in Namibia and will help grow the economy by using more local capital.

The RMB Namibia team is closely linked to Rand Merchant Bank in Johannesburg, which houses FirstRand Group’s investment banking expertise.

RMB has concluded deals in over 30 African countries, across a wide range of sectors.

“The approach to project finance is to work closely with the borrower in order to develop a tailor-made, flexible financial and contractual structure that is robust and sustainable in the long-term, with sufficient flexibility to cater for potential variability over the project lifetime,” says Norval. “We believe that the introduction of these units will ensure that these banking services and its profits remain in the country, rather than being wholly expatriated to South Africa.”

FNB Namibia is the largest locally listed company on the Namibian Stock Exchange with a market capitalisation of more than N$3.9 billion, which represents 38 percent of the NSX’s total market capitilisation.

The last two financial years have seen the Group making progress in its strategic objective of moving from the preferred to the most valued financial services provider in Namibia, Norval says. www.southafricamag.com 57

FNB Namibia focus banking

FNB Namibia Holdings comprises of five operating entities: FNB, RMB Namibia, OUTsurance Insurance and FNB Insurance Brokers.

Through its subsidiaries it provides various financial services to individuals, small businesses, corporate businesses and public sector clients.

“Our products and services are available through a country-wide network of 50 branches, 222 ATMs and MiniATMs, and 1,962 point of sale devises across Namibia,” says Norval.

After more than 22 years of independence, Namibia still faces huge economic, social and technical challenges.

Through targeted corporate social investments FNB Namibia is trying make a sustainable difference, Norval says.

“FNB Namibia established one of the first BEE programmes in the country, aimed at wealth distribution and empowerment of previously disadvantaged individuals and groups,” he says. “The programme has two focus areas, one being staff members and the other BEE partners.

The BEE programme commenced as early as 2003 with the acquisition of Swabou Life Assurance Company Ltd, now Momentum Life Assurance Company Ltd. “Given the limited resources, we closely align our corporate social investments with the FNB Namibia group strategy and the National Development Plan, which will remain an ongoing priority.”

“Through the FNB Foundation we spent N$2,694,127 on corporate social responsibility initiatives for the 2011/2012 financial year so far and more than N$26 million since its inception in 2003.”

He says the FNB Foundation extended its partnership arrangements with a number of similar entities that allowed a wider reach for projects.

“Our key future priority is to have a focused approach to corporate social 58

www.southafricamag.com

e-power A private holding company, e.power Consulting & Construction (Pty) Ltd (“e-power”) provides professional engineering, construction and consultancy services to the industry, including: · Building & installation of generator plants · Building & rental to lodges of power packs · Provision of solar systems · Design & creation of electrification plans Our capabilities are enhanced through our affiliate e.control & Panels CC, which specialises in the design and manufacture of low voltage switching panels, generators and other control boards, motor drives, power factor correction panels and distribution boards.

Based from our head office in Windhoek, Namibia, we service the entire SADC region.

investments that will leave a lasting result in the focus areas we selected. We will continue to seek smart partnerships with likeminded investors.”

FNB was awarded the prestigious Bracken Award as the best bank in Namibia for 2011.

The award was presented at the Banker’s Magazine, Bank of the Year Awards in November 2011.

It was the fourth time that FNB Namibia has been the recipient of this prestigious award.

“Our Home Loans Values Department received the Gold Arrow PMR Awards after receiving the Silver Arrow Award three times in a row!” Norval says. “This award is presented for the most work done in the sector to stimulate economic growth and development in Namibia.”

More recently FNB Namibia won the Best Banking Group in Namibia EST award of the World Finance Banking Awards 2012.

Vekuii Rukoro, CEO of FNB Namibia Holdings, proudly said: “FNB Namibia is honoured to be the first Namibian Financial

Your specialist off-grid power provider Diesel generators e.power manufactures, designs, maintains, repairs and rents out diesel generators and power plants to client specifications and requirements, with generator sizes ranging from 20kVA to 700kVA. We also rent Gensets from 20kVA to 700kVA. Construction e.power is a turnkey electricity contractor specialising in: · High voltage electrical installations like load centres and substations · Project management with continuous responsibility · Outsourcing and subcontracting · Commissioning and auditing of new and existing projects, including: · Medium and low voltage reticulation networks · Stand-alone power systems (e.g. diesel alternators, solar and wind plants and in-hybrid configurations) · Industrial automation systems (e.g. PLC & SCADA systems) Maintenance e.power offers excellent maintenance capabilities

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END

Q&A:

w I L L I S SouTH AfricA

Scott Pickering the ceo of Willis South Africa, one of SA’s largest commercial insurance brokers, tells us how Africa’s vast natural resources and rapidly emerging middle class represent a fantastic growth opportunity.

By ian Armitage 60

www.southafricamag.com

Willis South Africa fOCuS iNSurANce

w

illis has been operating in South Africa since 2000 and is one of the largest commercial brokers in the country. It has some 60 associates and two offices (in Joburg and Cape Town), supported by an international network that stretches across more than 100 countries.

Towards the end of 2011, Willis appointed Scott Pickering, Regional CEO of Willis Middle East & Africa, as CEO of Willis South Africa - his task, to align the company with the opportunities Africa has to offer.

Mr Pickering, who remains in charge of the wider region, relocated to South Africa in January 2012.

“South Africa is attracting investment in mega projects that require the kind of global risk management capabilities that Willis offers, combined with our strong experience in the local market,” he says.

I was fortunate enough to ask him a few questions about how the insurance giant aims to tap into Africa’s potential, how the firm is performing and where he sees the company in the future…

Scott, tell me a bit more about your role and remit. You oversee a fair chunk of the business. Do you enjoy the challenge?

As regional CEO for Willis’ Middle East and African operations, I am responsible for over 200 Associates in nine offices across the region. In January this year I took on the role of CEO of Willis South Africa, one of the fastest-growing operations in the Group.

Willis is one of the leading brokers in the Middle East where we’ve been in partnership with Al Futtaim, one of the region’s top business groups, for almost 35 years.

While the world’s focus has been on Asia and Latin America as the key growth areas, I believe that a significant amount of future growth will come from the resourcerich Middle East and African countries. It’s exciting therefore to be part of the “next big thing” and to help position Willis as a leading full-service risk management partner for both domestic and foreign companies looking to expand their footprint throughout the region.

The African continent represents a huge opportunity for Willis. Tell me more?

Our next emerging market target is Africa.

We are working with our Associate Company Gras Savoye, the leading French www.southafricamag.com 61

Willis South Africa focus insurance

We see significant opportunities in the power (including renewable energy) industry in Southern Africa

broker (of which Willis owns 33.3 percent), to grow our joint African footprint that already covers 23 countries on the continent.

Gras Savoye has a very strong presence in the Francophone countries and Willis has a well-established operation in South Africa including a number of correspondent offices in the rest of Africa. Between us we’re looking to maximise on opportunities from our existing branches and fill in the gaps business-wise across the rest of Africa.

We see significant opportunities in the power (including renewable energy) industry in Southern Africa, agriculture in East Africa and mining in West Africa, amongst others.

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Construction associated with infrastructure development is also another big growth area throughout Africa.

According to the African Development Bank, the number of middle-class consumers in Africa has grown 60 percent over the past decade to 313 million, a growth curve that’s on par with the Chinese and Indian middle classes.

These people will be looking to protect their newfound wealth and this presents an unprecedented opportunity for the insurance industry.

All these businesses will be seeking more and more risk management services as they expand, which is why we are so focused on further developing our African strategy.

Do you see South Africa as a sort of gateway to all this?

South Africa is one of our fastest-growing operations globally and with the country being seen as the gateway to Africa, we see huge potential here.

Global investors are taking notice of the burgeoning African middle class and several big brands including Wal-Mart, KFC’s owner Yum Brands, Ford Motor and Vodafone have set up shop in South Africa as a springboard into the continent.

As the dominant market in Africa, accounting for 90 percent of regional life premium volume and half of the regional non-life premium volume, the South African insurance market is ideally positioned to provide

Willis South Africa fOCuS iNSurANce

the insurance and risk management solutions to help facilitate the African expansion plans of both global and domestic companies. So we are glad to have such a strong base in South Africa with the necessary solid insurer relationships to help our clients with their risk management needs.

Of course, it’s not just multinationals that we’re focusing on – we see great potential in the domestic market too. The country has abundant natural resources and mining is a big coverage area. But it’s not just the commodity sector that is experiencing growth: retail, telecommunications, construction, manufacturing and banking are also expanding and need the kind of local risk management expertise backed by the resources and knowledge of a global broker that Willis can deliver.

What are your plans for the local market?

Property and casualty programmes form the basis of our business today together with marine, aviation, energy and construction placements.

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We have traditionally targeted large blue chip accounts from the top 100 JSE-listed companies, many with international and African operations.

A lot of our business also comes from government and parastatals. Four of the top 10 JSE-listed companies are our clients along with two of the largest state-owned companies.

We are looking to diversify our business in the future focusing on midmarket and SME market segments.

To do so we will be looking to leverage best practices and sales tools from within the Willis Group globally.

We are investing in new capabilities in mining and financial and executive risks and have set up a renewable energy practice in Cape Town. We’ve also expanded our risk engineering team - a group of engineers who travel the world to assess the risks in our clients’ operations, so that we can devise the

D&O Liability: More than just dirty water Acid mine drainage (AMD) is the mining industry’s greatest environmental challenge and its greatest liability. An acid-generating mine has the potential for long-term, devastating impacts. Recent media coverage on the outflows of water from abandoned or decommissioned gold mines in the Wits basin and the disused coal workings of the Mpumulanga Highveld, show that thousands of liters of highly acidic, metal and sulphate-enriched water is decanting into river systems from underground workings and tailing dumps. Groundwater is also being contaminated. It’s a major problem.

The government and the mining industry have been forced to act and a government commissioned study on risk mitigation and water treatment was presented to parliament on February 21, 2011. The report suggested that current mine owners should be approached to contribute to fund operational costs, but there is still disagreement about who is responsible for dewatering defunct mines and treating the polluted water.

Treating the water to acceptable standards and selling it to local water utilities as a means of cost recovery has been suggested as a sustainable solution. Clearly, the consequences of doing nothing will result in ever expanding environmental problems ending up in the headwaters of the major river catchments including the Vaal River.

But still the question remains: If the present day challenges are as a result of a century of mining and dumping of waste material, why should the current directors feel concerned? After all, they did not start the process.

Directors can be held personally liable if a director knowingly allows his or her company to pollute the environment by illegally disposing of waste.

This could have serious repercussions. The risk is increased in cases

where no action is taken but not in cases where a company has followed a particular course of action. The trend of recent legislation is to hold directors and officers personally liable for damages in cases involving either their action or inaction. Several environmental statutes specifically make a director personally liable for a crime.

As with public liability policies, pollution is generally excluded from directors and officers (D&O) liability insurance policies. Even when pollution cover is bought as an extension to the standard policy, the cover will still usually exclude fines and penalties, known pollution conditions, intentional or willful misconduct, clean-up costs and first and third party liability.

Since the mining industry has been aware of AMD and the implications thereof for some years now, it is most unlikely that they will be able to buy an insurance policy to cover the risks they now face, unless they can demonstrate to underwriters that they have implemented strict risk management procedures to minimise their risk.

These would include demonstrating good corporate citizenship by having policies and procedures in place that seek to curtail air and water pollution, conserve energy, market safe products, pay for any damage to the environment and regularly report progress to shareholders. They will also need to work closely with the various government departments where appropriate.

We must keep in mind that South Africa as a developing country is developing water scarcity and pollution of the water resources we have, multiplies that scarcity. It is of vital importance that a sustainable solution is found for all our sakes.

Visit: www.willis.co.za

appropriate insurance or mitigation solutions.

Are you seeing results?

We’re third out of all Willis’ international offices (outside the US and UK) when it comes to new business wins, winning 82 percent of all new tenders that we participated in 2011. Our client retention rate is 95 percent. 2012 has continued to build this positive momentum.

The South African insurance market is very innovative and flexible and capacity is plentiful even for the most complex risks.

The market is very competitive with large globals and strong local regional players on both the

we are investing in new capabilities in mining and financial and executive risks and have set up a renewable energy practice

brokerage and insurer side.

Like most markets around the world, a soft insurance environment prevails and risks are generally very competitively priced.

Willis is one of the largest brokers in South Africa.

Of course, our aim is to be number one, but we see our current position as an advantage in that we’re smaller, more nimble and ready to jump at opportunities that come our way.

What trends are you seeing in the insurance market locally? How are you adapting to those?

New products?

Like their BRICS counterparts, South African risk managers, particularly www.southafricamag.com 65

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Willis South Africa focus insurance

We are investing in new capabilities in mining and financial and executive risks and have set up a renewable energy practice in Cape Town

those in companies with African or international expansion plans, are interested in insurance solutions that protect their companies against risks like supply chain disruption, political instability and expropriation, and kidnap and ransom.

While political risk and K&R coverage are very well established products, the insurance industry is working hard to create innovative products to protect clients against heightened risk exposures such as Contingent Business Interruption.

One area of innovation that Willis Group is leading the way on involves tackling the piracy problem in the Gulf of Aden. Willis introduced a unique anti-piracy insurance solution called Vessel Shield™, which gives ships’ masters real time advice to help them navigate dangerous waters.

No ship using Vessel Shield™ has been hijacked.

Locally, the South African government’s commitment to adding 3,725 MW of green energy to the national grid by 2016 will see investment of 100 billion rand in the renewables sector. Getting the right insurance in place for these investors is integral to the success of these projects and Willis SA’s fledgling renewables team is fortunate 68

www.southafricamag.com

Q&A:

Gary Corke, Emerald Risk Transfer Q: In a nutshell, who are Emerald Risk Transfer?

always a concern we do not have some of the

Emerald Risk Transfer are one of the largest

inherent risks associated with other regions.

suppliers of corporate property and affiliated engineering risk insurance solutions on the

Q: When did you first work with Willis?

African continent.

My first job was in Ipswich, England with Guardian Royal Exchange and their office

Q: Which segments of the market do you operate in?

was directly opposite the infamous BlackGlass

Essentially all the larger retail industrial and mining

building of Willis. In fact, I nearly joined that

companies within South Africa, but in recent years

very same office in 1981.

our footprint into the rest of Africa has grown.

Q: What do they provide/do you provide to them?

Q: How are you performing?

I believe the relationship between Willis and

Thanks to a mixture of hard work, good fortune

Emerald is symbiotic. We offer each other

and good risk selection, very well. This year,

solutions. Willis have a host of large industrial

like those before it, has proven profitable for

and mining clients that require corporate property

our shareholders.

and engineering solutions that we try to provide.

We have a host of facultative reinsurance

Q: How can you improve?

requirements that they in return try to help us with.

There is always room for improvement, but I suspect our improvement of relationships with our customers

Q: Do you have a strong working relationship?

have been the most pleasing aspect of our year.

Absolutely. We are people centric and a number of people within Willis Group I regard as

Q: How would you sum up the current state of the

friends away from work. Suitably, my colleagues

industry?

at Emerald have some long-term relationships

The biggest uncertainty for me, and the area I

that have been robust enough to withstand the

have least control over, is the global economy

odd work related problem.

and the effect it has on reinsurers security and reinsurance capacity. The credit risk that

Q: Are you looking forward to continuing working

our reinsurers bring to our balance sheet is a

with them in the future?

concern and one we try to keep an eye on.

Willis are a fundamental part of our strategic thrust, and I certainly hope to work with Willis

Q: Are there lots of opportunities for the company?

for some considerable time.

There are many. Corporate South Africa has, compared to many other regions, performed well.

Q: Finally, what do you believe is the key to

The resources of the African continent create

Emerald’s success?

unique opportunities for investment. Thankfully,

Good people. At Board level, within our staff

our region does not have the catastrophe issues

compliment, our reinsurers, our intermediaries,

associated with North America, Australia, New

and our policyholders. We are a people

Zealand, Japan, Chili, New Zealand and others.

centric organisation, and good people deal

Whilst risk management on our continent is

with good people. www.southafricamag.com 69

Willis South Africa focus insurance

AGCS South Africa South Africa officially joined Allianz Global Corporate & Specialty in January 2010.

Pictured, left to right: Scott Pickering, Peter Moyo (Chairman, Willis South Africa), Joe Plumeri (Willis Group Chairman & CEO) and Tim Wright (CEO, Willis International)

The insurance industry is working hard to create innovative products to protect clients against heightened risk exposures such as Contingent Business Interruption

The Allianz involvement in the South African market began with the acquisition of Shield Insurance Co. in 1981, offering personal, commercial and corporate insurance and continued until 2002. Allianz re-entered the South African market in 2004 to service international insurance programs (IIPs) and selectively target South Africa domiciled corporate clients. As part of the expansion of the AGCS footprint, the South Africa operation has been transferred from Allianz SE to AGCS AG at the beginning of 2010.

We are now offering property, financial lines, engineering, marine cargo and general aviation insurance from our South Africa office. We also provide access to all complementary products and services of the Allianz Group – via its network in over 150 countries - as well as specialist risk consulting support.

to be in a position where we can draw on the expertise and knowledge of our London renewables team who are leading the way in Europe.

It was fascinating talking with Scott and getting a real glimpse into Willis SA’s future.

The African continent is “not for sissy’s” but is a “continent full of unparalleled opportunity.”

With patience and the right strategies, “businesses have the real ability to achieve sustainable” longterm growth, he says.

“I truly believe it is Africa’s time and it is exciting to be living and working here right now.”

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

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END

Gem wHAT A

charles Siwawa, ceo of the Botswana chamber of Mines talks exclusively to South Africa Magazine.

By ian Armitage 72

www.southafricamag.com

B

otswana has experienced a serious resurgence of mining and exploration activity, with new discoveries seeming by every month.

Charles Siwawa, CEO of the Botswana Chamber of Mines, says the minerals sector of the country is flourishing and that “exploration for

Botswana Chamber of Mines focus MINING

a wide variety of minerals is active and several new minerals projects were launched during the past five years or so.”

The Botswana Chamber of Mines has been operational for nearly 20 years through the various mining houses

namely Debswana, BCL, Botash, Kgale Quarries and some exploration companies.

It is a private sector body that is non-profit making with the running of the organisation drawn from among the industry leaders.

As the industry has grown, so too has the Chamber.

“The increasing mining activity in the country saw the creation of the Botswana Chamber of Mines secretariat in Gaborone,” Siwawa says. “That decision was made in 2009, I was brought in as CEO in April 2010 and the office was officially opened by the Minister of Minerals Energy and Water Resources Dr PHK Kedikilwe on 23rd November that year.”

The purpose of the Botswana Chamber of Mines is to serve the interests of the mining companies and to influence policy decisions and strategic intents within the government, nongovernmental organisations and related bodies, Siwawa says. “We essentially promote and protect the interests and image of the mining industry here in Botswana.”

Botswana, he adds, is a country “getting back to its feet” following the disasterous effects of the 2008 global economic meltdown. “The downturn in the global economy commencing 2008 has had serious repercussions

The fact that the Diamond Trading Company (DTC) in Botswana will sort rough stones locally is a huge milestone

www.southafricamag.com 73

Botswana Chamber of Mines focus MINING

on the mining sector in Botswana. The industry went into a lull with some companies closing down whilst others retrenched staff all in an effort to reduce costs and weather the storm. I think since 2010 however the economic landscape has been changing, picking up, to the extent that in July 2011 the country recorded the highest sales of diamonds. That has tailed off slightly in terms of production and we are not yet back to the pre-2008 crisis levels but the upswing can be felt.

On August 17, 2012 another diamond mine, Karowe, operated by Lucara Diamonds was officially opened by the President of the Republic of Botswana, His Excellency Lt General Seretse Khama Ian Khama.”

Diamonds are of course a girl’s best friend; they’re Botswana’s too.

Earlier this month, De Beers began rough stone sorting in the country, a first step in its transfer from London to Gaborone.

Rough stone sorting or aggregation operations had previously been based in London for nearly 80 years.

Chief executive officer Philippe Mellier said it was the first step in a process that should be complete by the end of 2013. The move will transform Botswana into a leading international centre, with about $6 billion worth of diamonds expected to flow through the country.

Botswana and De Beers signed a 10-year deal to move its rough stone sorting and trading division from London to Gaborone in September 2011.

Under the deal Botswana will for the first time directly sell 10 percent of gem stones produced locally while De Beers will also increase the value of diamonds it makes available to manufacturing companies in the country.

“The fact that the Diamond Trading Company (DTC) in Botswana will sort rough stones locally is a huge milestone. From the point of view of what it’ll do for the

The downturn in the global economy commencing 2008 has had serious repercussions on the mining sector in Botswana 74

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country, we believe it is going to inject a significant amount of money into the economy, while we’ll get increased tax yields from the sale of diamonds in this country and also you’ll have a number of secondary industries growing from this move.”

Siwawa is excited. He says the whole country is.

“There is definitely optimism in Botswana.

There is lots of exploration taking place for all kinds of minerals. We’ve coal reserves that are deemed to be the second largest in Africa, behind only to South Africa and we have another new copper mine that has commenced production in the western part of the country that will have a minimum of a 30-year life. www.southafricamag.com 75

There is more exploration currently on-going and we’re certainly expecting more mines to open in the not too distant future.”

Botswana’s mining industry has subscribed to the initiative by the government to diversify the economy from the current mining activities. The country is currently very heavily dependent on diamonds for its revenue.

“We cannot just depend on diamonds,” Siwawa stresses. “We have a diverse mineral resource. We are using it. I think we will soon see Botswana at the height of activity in terms of mining in the next five to 10 years and I say that because we have such a huge coal deposit and opportunities with copper, nickel, silver, uranium, iron ore and many other metals and minerals.

The opportunities with coal are dependent on the infrastructure plan currently being designed to get the raw coal out and into eastern 76

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markets – Asia in particular. The desire is to supply India and China but we’re a landlocked country, and the hope therefore lies in the ability to transport by rail through to the neighbouring countries with ports such as South Africa, Namibia and Mozambique.”

It all sounds very promising. But there must be challenges, right?

“Yes there are. I touched on one the lack of transport infrastructure, in particular railway lines, is one of the biggest challenges hindering progress in the country’s coal sector. Also skilled manpower is in short supply within Botswana and this is more pronounced in the mining industry where the dependence on expatriate skills is heavy. Training of local skills from different perspective is ongoing in a country where there are graduates trained and qualified in inappropriate skills. The Botswana Chamber of Mines has identified

Botswana Chamber of Mines focus MINING

skills deficiencies in the industry and has put strategies in place in order to address these issues fully.

The Chamber is also addressing safety health and environment issues within the industry. Great strides have been made in these areas to ensure the industry operates sustainably.”

Investors are taking note of what Botswana has on offer.

The country has helped its cause by going on the charm offensive, amending its Income Tax Act and Value Added Tax Act to lean towards investors.

The amendment of the Income Tax Act alone resulted in a reduction of company tax from a minimum of 25 percent to 22 percent.

“It is an attempt to lure, to entice and to goad companies to search for non-diamond investments,” says Siwawa. “The country’s success is now falling to a new breed of eager young start-up entrepreneurs in mainly coal and, more recently, also in the copper/silver belt.”

The government has embarked on a strategy to improve the ease of doing business in Botswana and to improve the country’s global competitiveness.

“The attitude of the government is that the private sector must be given the opportunity to participate as freely as possible in mining,” says Siwawa.

A coordinated effort is being made with the new Coal Development Unit in the Ministry of Minerals Energy and Water Resources to have a more substantial go at developing the country’s coalfields. “There is a national strategy on coal development and we have estimated coal deposits of 200-billion tons; coal presents a growth opportunity.”

Siwawa’s view is that there is no reason why Botswana’s other minerals combined mining revenue cannot exponentially grow and even offer diamond revenue some competition.

Botswana, then, is on the up and up.

“I think in the next 10 years we’re going to see Botswana being transformed into one of the largest players in the economy of the world in terms of supplying raw materials and natural resources.

We believe mining will play a significant role in the development of Botswana as a country and also the region as a whole.”

To learn more visit www.bcm.org.bw END

www.southafricamag.com 77

taking T o

T H e

Air Botswana’s turnaround strategy is in full effect as the airline finds its place in an increasingly competitive market.

By ian Armitage

78

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Air Botswana focus TRAVEL

A

ir travel in Africa is an everattractive investment. In Botswana the market is expanding all the time and becoming increasingly competitive, with the country embracing an open sky policy.

Within this new, exciting context, national carrier Air Botswana is finding its place.

The airline’s monopoly over domestically and regionally services is diminishing. But it isn’t about to quit.

“Air Botswana currently employs about 400 people,” says Thabiso Leshoai, Air Botswana’s PR Manager. “The Airline has plans to purchase new aircraft and to add more routes to its network.

“The turnaround strategy currently in place is showing positive results and so Air Botswana finds itself on good footing to move forward and enhance its operations.

“The current plan is to increase operational capacity and so Air Botswana is planning to increase its fleet in the next few months while adding more domestic, regional and international routes.

“The main focus in terms of development for the airline is to enhance management capacity. This is being addressed through relevant and up-to-date training. The aim is for Air Botswana to be successful and for that success to be sustained and maintained for years to come.”

Leshoai confirmed to that Air Botswana recently invested in bigger aircraft, purchasing two AVRO RJ 85 aircraft.

The AVRO RJ 85 aircraft is equipped with a bigger engine and has a carrying capacity of 93 passengers.

“Before purchase, an extensive and exhaustive exercise was undertaken to identify the best maintained aircraft,” says Leshoai. “This is an interesting time for us with the turnaround, which has a number of phases, from getting compliance and staffing qualification levels sorted out to investing in machinery and other such improvements.”

Air Botswana has in recent times posted financial losses, which in part is due to overstaffing, the operation of an ageing, fuel inefficient fleet, increasing operational costs, inadequate management expertise and an inability to retain and attract qualified pilots.

“Times are changing. We are ambitious.

We are proactive,” says Leshoai, adding, “few airlines in the world can have been established so quickly and contributed so centrally to the development of their home countries as has Air Botswana.” The airline launched in 1988.

“Construction of a new terminal and major runway development is going ahead steadily at Sir Seretse Khama International Airport, and terminal building and runway project are also taking place in Francistown, Maun and Kasane, so that these important centres can receive larger aircraft and handle more passengers.”

Air Botswana continues to play a pivotal role in the phenomenal growth Botswana has enjoyed and has built a reputation for quality air services that is quite disproportionate to its modest size.

The Okavango delta is seen from the air outside Jao Luxury Safari Camp

www.southafricamag.com 79

Air Botswana focus TRAVEL

ST LOUIS LAGER LAUNCHES NEW QUALITY CAMPAIGN St Louis Lager, Botswana’s first home grown beer launched its ‘Men Who Love the Best Drink The Best’ campaign, to celebrate its recent Monde Selection Silver Award for Taste and Quality. The campaign, which broke on June 8th 2012 on various mediums of communication was also launched online, the first for any local brand, in a specially designed facebook page.

© Simisa

“Botswana is an African jewel. We have been part of it all, contributing fully to the growth of the economy.”

Air Botswana is based at Sir Seretse Khama International Airport in Gaborone. Its domestic route network links the capital with Francistown, Botswana’s second city, and with Maun, on the edge of the great Okavango Delta, and Kasane, gateway to Chobe River and National Park on the northern border with Namibia.

Regional destinations are Johannesburg, Cape Town, Lusaka and Harare, while Air Botswana also operates between Gaborone and Nairobi through joint services with Kenya Airways.

Its timetable is closely attentive to the needs of 80

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the business and leisure traveler, and is also designed in full support of the important and growing tourism industry.

Botswana is an outstanding destination, with unique natural attractions that draw visitors from all over the world.

“Tourism is the country’s second largest revenue earner after mining,” says Leshoai who explains that many travelers come from all over the world to “experience Botswana’s unique tourism offering”.

Air Botswana is focused on creating a wider reach and gaining more brand exposure.

You can book your tickets online at www.airbotswana.co.bw END

Explaining the new campaign to the media, Marketing Manager for Alcoholic Beverages at KBL, Thabiso Botlhole, highlighted that the campaign recognises the quality demands that the St Louis Lager consumer places on the beer and was proud that the beer consistently meets and exceeds those demands. He explained that the campaign will be twofold: “First, execution of ‘I only ask for one thing.

The Best’ appreciates the uncompromising quality seeking nature of the St Louis Lager consumer,” she said. “This he said applies in all that they do, be it fashion, entertainment, sports, business or leisure activities.

The expectation is always the same, that they will receive the best. The second execution pays homage to men who put their best foot forward when expected to deliver on any task; a trait that symbolizes the level of dedication that goes into delivering the refreshing taste of St Louis Lager. The second execution will be rolled out at a later stage.”

catch wHAT A

gino Asaro the founder of wholesale seafood supplier GSA Traders started his fish processing business from scratch in 1989 – today it continues to expand beyond his expectations.

By ian Armitage 82

www.southafricamag.com

GSA Traders focus FOOD & AGRICULTURE

G

SA Traders are wholesale suppliers of quality seafood products. Established in Cape Town some 23 years ago by Gino Asaro and his wife Susan (GSA - Gino and Susan Asaro), this seafood importer and exporter has developed a comprehensive regional network to become a clear leader in terms of market size. To quote its website, GSA is “entrenched in the South African market as seafood wholesalers and catering suppliers and deals with many international companies importing from various sources and exporting seafood products throughout the world.”

Mr Asaro has a long association with the ocean, fishing and seafood industry.

He grew up fishing with his father Leonardo, a fisherman with his own trawlers, before a four-year stint in the navy and a few years in the boat manufacturing business led him to start producing and selling fish in 1989.

“We started small, building what has now become the substantial GSA Group of companies,” he says. “It all began on a smallholding in Cape Town with a modest factory for smoking fish and processing for restaurants and small markets. Our export market started to develop in Italy and Greece, but we were unable to process

for the European Union and exported products branded in the name of another company who were approved for this market. The only way forward was develop our own brand and risk all we had to construct our own 2000m² state of the art EU processing plant and cold store in Killarney Gardens and we have never looked back.

“Today, the business is thriving. We have developed into an extremely versatile company which has been necessary with ever changing South African and International economies.

While others are struggling we are actually doing brilliantly. We export, we import, we process, and we supply locally so we always have an alternative.

“Our Cape Town factory employs experienced and well trained staff; they are skilled and knowledgeable about all aspects of fish and seafood. Our seafood products are good value for

Today, the business is thriving

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GSA Traders focus food & agriculture

money, of superior quality and we are trusted and accepted by the market.

We process under our own GSA label, but can efficiently arrange CMT (processing) of your own fish, tailor making the products to your own special requirements. All controlled with our established HACCP system.

“Over in Durban,” he adds. “We have GSA Traders KZN (Pty) Ltd which is based in Glen Anil, Durban North. It was established in February 2003 and the division quickly grew and thrived. It is primarily a cold store, with a sales and distribution network, which is a wonderful base for fast and easy access to our local clients there.”

Key markets other than the local one include Europe, America, Asia and Australasia.

“The UK is an excellent export market for us at present along with the United States and Australia.

Africa is another important market which is showing a considerable amount of potential,” Asaro says.

“It is a huge market and we are supplying the cheaper lines of fish which allow the masses a cheap source of good protein. Ghana is developing nicely along with Nigeria and the Congo.”

He is keen to be in as many markets with as many products as possible – it spreads the risks inherent of a changing industry and opens the product to a larger audience.

Although GSA runs without fish quotas, it is buying fish from those who do. Asaro says a number of quota holders are struggling in the current climate as they have all relied heavily on Spanish and European markets. “As we know Europe is struggling and buying less.

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Susan Asaro, General Manager and Gino Asaro, Managing Director

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Locally, we are benefiting, as a lot more fish is available to us, which is lowering the market price. We are excited about the future prospects for our business, despite challenges which may lie ahead. We deal with our problems as an enthusiastic team and we always resolve them with a good solution, utilising our resources to the full and keeping everyone employed. We have never found it necessary to retrench anyone in 23 years.

Hopefully our continued success can help to build our economy and create secure employment for more South Africans. Education, good training and employment are definitely the most important criteria for the growth of

Our seafood products are good value for money, of superior quality and we are trusted and accepted by the market

our country, and of course; more people earning a salary means more people buying and eating fish!

“We are very blessed and manage to do better and better every year, so I can see a positive way ahead. We have been fortunate to be able to acquire the properties on either side of our existing premises in Killarney Gardens and are eager for opportunities to expand in the future.”

The product list of what GSA Traders can supply is huge and, thanks to strong relationships with many suppliers in many countries, it can readily source from around the world.

To learn more visit www.gsatraders.co.za. END www.southafricamag.com 85

reeling

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TerraSan fOCuS food & AgricuLTure

South Africa Magazine profiles TerraSan.

By Marie Toms

t

erraSan Limited is a South African investment group which holds investments in the pelagic fishing, mariculture, agriculture, hospitality and property industries.

Since its inception the aim has always been to add value to “Southern Africa’s southwest coast marine resources as well as participating in sustainable development projects in the area by investing in productive assets,” its website says.

Its fishing business, TerraSan Pelagic Fishery, is a trawling and fish processing business that produces a wide range of fish products for local and export markets.

The company has an impressive history, having been founded in 1965.

It was previously known as Oranjerivier Visserye (Edms) Bpk. The firm also forms part of the Oranjevis joint venture – a 100,000t operation that produces canned pilchards under the Sea Pride brand name as well as manufacturing fishmeal and fish oil.

It is a JV between Pioneer Fishing and TerraSan Pelagic Fishery.

“TerraSan Pelagic holds an undivided share of 28,515 percent in the fish processing and freezing www.southafricamag.com 87

TerraSan focus food & agriculture

plant of Oranjevis Joint Venture and is used on a rental basis,” the firm’s website says.

“The Joint Venture between TerraSan Pelagic Fishery (Pty) Ltd and Pioneer Fishing (West Coast (Pty) Ltd) trades as co-owners under the name of Oranjevis at St. Helena Bay. The joint venture was formed in order to obtain economies of scale by processing more fish through the plant. In 2002 Eagle Fishing (Pty) Ltd, a BEE company, joined the venture. Nett income and losses are shared in the ratio of raw fish delivered by the participants’ pelagic vessels or vessels contracted by them.”

Based in the Western Cape, TerraSan Pelagic Fishery is noted for its excellent pelagic catches.

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TerraSan’s vessels assist other quota holders to catch their fish when the need arises for various reasons

T: 022 713 1139 F: 086 600 0402 www.norsenet.co.za Directors: N.M. Skarbovig (SA) H.P. Selstad (Norwegian)

Norsenet (Pty) LTD has been involved in the manufacturing, net design and maintenance of high quality fishing nets since 1971 for both local and export markets.

Our objective is to supply our clients with the best and most cost-effective nets for the optimisation of catches and to minimize downtime.

INNOVATIONS: · Introduction of braided knotted netting in the bag sections · Tearing strips to prevent the spread of tears from running into adjacent sections of netting · The use of chokes which allows for the greater opening of the aft wing sections · T-Piece Nets. The net can be deepened and lengthened in a short time frame for catching of other fish species · Norwegian Style hanging. Nets hung on double tarred polyester ropes securing the hanging percentages originally designed for

PLANNED MAINTENANCE PROGRAMMES: · Keeping the nets in an optimal condition to reduce downtime · To extend the life span of the net · To enable minimal maintenance costs in a poor season · To reduce the overall maintenance expenditure over the life span of the net · To assist with clients’ annual budgets PRODUCTS: · Braided twines · Twisted twines · Anchovy nets · Pilchard nets · Mackerel nets · Fish farming nets · Tuna nets · Shark nets · Trammel nets · Kapenta dip nets and purse seines nets · Game capture nets

Norsenet are especially pleased to partner Terrasan Pelagic and look forward to furthering our already successful partnership. Norsenet is proudly a Level 4 B-BBEE contributor.

TerraSan focus food & agriculture

Its infrastructure includes a fishing fleet and processing factories.

“We’re a well run business,” general manager Neil Adams told a South Africa Magazine researcher.

TerraSan Pelagic Fishery has a fleet of two vessels: the first, MFV Toliko (RSW), catches “pilchards and non quota (red-eye) species,” according to its website. It has the capacity for 130t; the second vessel is MFV Doloreze (CSW) and it is equipped to “catch cooled pilchards. It has the capacity 90

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We’re a well run business

for 170t industrial fish and 70t directed pilchards.”

“We own several vessels,” Adams added.

TerraSan Pelagic also has catching agreements with BEE private boat owners affording access to additional fishing vessels, according to its website.

“Where possible, other quota holders are accommodated to process their fish in various ways,” its website says. “Quota holders with vessels sell their catch to the Joint Venture at the normal fish price plus a

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FOCUS… SA EXPORTS South Africa’s trade of both primary and processed agricultural products has grown from 10 billion exports in 1996 to 48 billion in 2011. Our wine exports are soaring, despite the recent global economic slowdown, and we are now exporting three times more wine than we did a decade ago. The export of fish and fish products has also rapidly expanded, particularly in China and Cameroon.

South Africa’s export markets have undergone significant structural change since 2001, with new destinations in Asia, the Middle East and North America.

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TerraSan focus FOOD & AGRICULTURE

premium. This is happening more frequently with the migration of sardines from the West Coast to Mossel Bay where quota holders with small vessels are better equipped to catch and land in Mossel Bay and truck the fish to the West Coast. These vessels would be contracted to catch a portion of TerraSan’s pilchard allocation.

“TerraSan’s vessels assists other quota holders to catch their fish when the need arises for various reasons.”

TerraSan Pelagic Fishery is a diverse business, with options. It has a bright future and forms an important part of the TerraSan Group, a business that targets “long term strategic investments”, “partnerships and minority concerns including empowerment” and “other investments like fixed property and loans”.

With a philosophy of sound investments and with the highest standards, morals and good business practises, TerraSan has set a solid foundation for further expansion.

“This has also been the cornerstone of TerraSan’s business and not only underlines growth for the entire group, but also equity and fairness for everyone involved,” its website says.

TerraSan Pelagic Fishery is part owned by Ipikoko (seven percent) and Keenland (which holds 10 percent of the issued share capital).

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

END

This has also been the cornerstone of TerraSan’s business and not only underlines growth for the entire group, but also equity and fairness for everyone involved

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food

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Berfin fOCuS food & AgricuLTure

South Africa Magazine profiles Berfin, a leading exporter and importer of specialty food products.

By Marie Toms

B

erfin is South Africa’s leading exporter and importer of specialty food products and has a proud tradition as a leading food marketer.

The firm is “strategically placed between historic wine lands and beautiful orchards close to Cape Town, to continue a proud tradition as one of South Africa’s leading food marketers,” according to its website.

Operating in 30 countries from South East Asia to Europe, “Berfin is able to offer an exceptional marketing service by drawing on the well-established international connections of the Afrifresh/ Sunpride group,” it adds.

The company was born in 1995.

It as born from demand: a demand for South African grocery products.

“There was a need to take them overseas to different markets,” managing director Grant McGregor told a South Africa Magazine researcher.

In the UK, a key market for many South African producers, Befin works with the likes of supermarket giants Tesco, Sainsbury’s and Waitrose. It works with several smaller players too and is an incredibly strong enterprise.

“We’ve established close relationships with local manufacturers, wholesalers, supermarkets and other retail outlets,” McGregor added.

Befin’s grocery range covers things like milk products, cooking sauces, salad dressings, condiments, fruit juices, canned vegetables and fruit, wines, jams and preserves.

All of that is sourced locally.

Brand names include Ina Paarman and Willow Creek. www.southafricamag.com 95

Berfin focus food & agriculture

The imported products include A Taste of Thai.

Befin’s current focus is expansion.

“The African market is a big focus for us at the moment,” said McGregor.

Given the current turmoil in Europe, which accounts for something like 25 percent of South Africa’s exports, this appears to be a wise move; many Africa countries are growing and, as we’ve seen in the pages of this month’s magazine, there is vast potential.

“There has been a lot of work done to encourage business,” McGregor said.

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“It is a lot easier to trade with other African countries than it was before.”

Berfin is a regular face at international food tradeshows, where it exhibits South African products as well as selecting the best of what the rest of the world has to offer for import to its local markets. It’s website takes up the story, “A frequent visitor to international food trade shows, Berfin exhibits South African products as well as selecting the cream of what the rest of the world has to offer for import to the local markets. Berfin has its own extensive infrastructure,

on-site warehousing, distribution and cold storage and is perfectly positioned to effectively handle all aspects of international trade.

“We offer only those products which meet our standards of excellence in both quality and packaging.”

Over the last 17 years, Belfin has grown from strength to strength. It offers “only those products which meet our standards of excellence in both quality and packaging” and we’re sure it has a bright future.

To learn more visit www.berfin.biz. END

Situated in Diep River, Cape Town, South Africa, the Paarman Foods factory is a model of high-tech manufacturing, employing approximately 150 staff. Although products are produced on a large scale commercial basis, the Paarman family pride themselves on delivering seasonings and sauces with an authentic home-style taste. This is achieved through continuous investment in top quality ingredients, a highly trained workforce and customized processing equipment.

The Ina Paarman products are ordinary enough to find their way into everyday dishes - sophisticated enough to transform the everyday into the exceptional - and consistent enough to have earned consumer trust.

Export Enquiries Grant Mcgregor (grant@berfin.biz) Tel: +27 21 763 7690 Web: www.berfin.biz Address: 5 Primrose Avenue Upper Claremont Cape Town South Africa