SA Mag - Issue 24

PEOPLE CULTURE TRAVEL PROPERTY BUSINESS WINE SPORT ENTERTAINMENT

ISSUE 24 R40.00

Continental Coal

Coal is still energy’s VIP

Subway

The best bite in town

Umbhaba Estates

Roy Plath, Banana Grower Extraordinaire

Top Trailers

One of the largest trailer manufacturers in SA

De Beers, London

NEW LABOUR LEGISLATION GETS CABINET APPROVAL Cabinet has approved the highly controversial Basic Conditions of Employment Amendment Bill and the Labour Relations Amendment Bill, which will now be submitted to Parliament who’ll conduct public hearings on their content.

The new legislation addresses the controversial question of labour broking, which the Congress of South African Trade Unions (Cosatu) wants to be banned completely.

The Government however has reiterated that it will not budge on the decision to regulate labour brokers and not scrap them.

The charge is that labour brokers are the main drivers of “casualisation of labour” and that their practices are “the absolute contradiction to the principle of decent work”. They have “driven down workers’ wages and conditions of employment” and “do not create any jobs but sponge off the labour of others and replace secure jobs with temporary and casual forms of employment”.

On page 20, Tim Downes, COO of Capital Outsourcing Group, explains why the government is making the right decision, despite huge public opposition (March’s Cosatu one-day strike cost the economy billions). He says labour brokers offer an alternative to permanent employment and provide a means for first time employees to gain experience and receive job training in specific skills.

Away from that contentious topic, this month we have a number of other exciting stories for you, including a look at banana grower Umbhaba, construction firm Bophelong Construction, and food giant Subway.

We also look talk to South African-born singer Aletia Upstairs, bring you all the latest business and lifestyle news, and have an exclusive interview with Sibongile Mkhabela, CEO of Nelson Mandela Children’s Hospital Trust. That last piece is a touching story and well worth a read.

Enjoy the magazine!

Ian Armitage Editor

EDITORIAL

Editor – Ian Armitage Sub editors – Jahn vannisselroy Marie Toms Tom Sturrock Writers – Colin Chinery Jane Bordenave John o’hanlon

BUSINESS

Advertising Sales Manager – Andy Ellis Researchers – Jon Jaffrey Marie Smith Elle Watson Sandra Parr Marcus graham Thomas Aras Sales – Andy Williams Sales administrators – katherine Ellis 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 343367 Fax: +44 (0) 1603 283602 andy.ellis@tntmultimedia.com

SUBSCRIPTIONS

Call: +44 (0) 1603 343367 andy.ellis@tntmultimedia.com

www.southafricamag.com www.southafricamag.com

3

24 12

58 84 100

4

44

www.southafricamag.com

16 80

PE

URE CULT OPLE

ISSUE

24 R4

TRAV

OP EL PR

ERTY

WIN

0.00

Contents

ilers t trailer Top Trathe larges SA

n ay Subw t bite in tow

Coal ’s VIP nental Conti still energy

Roy Plardinaire Extrao

The bes

is Coal

All the latest news from South Africa

ENTERTAINMENT Cabaret, Cabaret!

South Africa Magazine meets South African-born singer Aletia Upstairs

Nelson Mandela Children’s Hospital Trust’s cherished Children’s Hospital in Johannesburg has taken a huge step forward

20

FEATURES

REGULARS

06 12

CULTURE Mkhabela’s mission

in One of acturers manuf

tates Grower aba Es a Umbh th, Banan

NEWS

16

NESS BUSI

24 34 44 48

CAPITAL OUTSOURCING GROUP UMBHABA BRITISH AMERICAN TABACCO BOPHELONG CONSTRUCTION PRO ROOF

54 58 62 68

BP SOUTH AFRICA

76 80 84 88

GRID GROUP

72

92 96

100 106 110 116

CONTINENTAL COAL SAIL FEEDOM PITSENG FOTON MOTOR COMPANY

ROADHOG TRAILERS MINUTEMAN PRESS STEFANUTTI STOCKS MARINE SUBWAY AFRICA LESOTHO ENERGY COMPANY KADOMA PAPER MILLS TOP TRAILERS WILLOW CREEK IWC www.southafricamag.com

5

All the latest news from South Africa Business

One-day strike and protests

hit SA hard

Thousands of South Africans marched in cities around the country on 3 March as the Congress of South African Trade Unions (Cosatu) called a one-day strike to protest against labour brokers -- and remind the government of the movement’s power.

The strike was aimed at the mining, manufacturing, retail and services industries.

The protests were peaceful. Business groups claim the action cost the economy as much as R10 billion.

More than 200,000 people joined Cosatu’s protest marches in all nine provinces, in major cities and towns, including East London, Newcastle and Kimberley.

About 150,000 Cosatu members, ANC Youth League supporters and ordinary citizens took to the streets in the Johannesburg CBD demanding an end to 6

www.southafricamag.com

labour broking and the e-toll system.

About 10,000 people marched to parliament in Cape Town and 30,000 brought central Durban to a halt.

Cosatu general secretary Zwelinzima Vavi said the ANC government, after dismantling the apartheid system, was now creating a similar system based on economic classes.

“Just as we made apartheid unworkable, we will make this system unworkable,” Vavi said. “We defeated the apartheid government, which excluded our people based on colour.

This government is coming with a new apartheid - economic apartheid.”

Lifestyle

SA marks

Human Rights Day

On March 21, President Jacob Zuma led a national commemoration of the day when apartheid-era police gunned down 69 blacks protesting segregation in the township of Sharpeville 52 years ago.

He said South Africa honoured its annual Human Rights Day by remembering “these patriots and thousands of others who fell” in the struggle that led to the first all-race elections that swept Nelson Mandela to power in 1994.

Zuma spoke in Soweto, a controversial choice in the eyes of the residents of Sharpeville who held violent protests.

He acknowledged that strong inequalities persist and that the government had failed to provide basic rights like housing, sanitation, clean water and healthcare across the board.

“We have done well in a short space of time. However, we are aware that as more people gain access to these socio-economic rights, many more still live in hardship.”

Business

Contentious new labour

legislation gets cabinet

approval Cabinet has approved the Basic Conditions of Employment Amendment Bill and the Labour Relations Amendment Bill following long and protracted negotiations in the National Economic Development and Labour Council.

The bills will now be submitted to Parliament, which will conduct public hearings on their content.

The legislation addresses the controversial question of labour broking, which the Congress of South African Trade Unions (Cosatu) wants to be banned completely.

Cosatu held a national strike earlier this month on the issue.

Zwelinzima Vavi, general secretary of Cosatu, described brokers as human traffickers, saying they did not create jobs.

“The proposed amendments to the act deal with a number of developments ... in particular they respond to the growth of informalisation in the South African labour market (labour broking),” said Jimmy Manyi, spokesman for the Cabinet, at a media briefing.

www.southafricamag.com

7

Business

Implats,

Zimbabwe agree stake

transfer

Implats (Impala Platinum), the world’s second-largest platinum producer by volume, and the Zimbabwean government have agreed a deal to transfer a 51 percent of Implats’ Zimbabwean subsidiary Zimplats to local investors.

The deal follows protracted negotiations with the government, which is enacting laws to compel foreign-owned mining companies with operations in the country to transfer 51 percent ownership to black Zimbabweans.

The Implats deal is the first large deal to be reached between mining companies and the government after it introduced an indigenisation law two years ago.

However, the details — particularly around valuations and funding — are yet to be finalised.

8

www.southafricamag.com

Business

Sasol’s first-half

profit jumps 81%

South African petrochemicals company Sasol, the world’s top maker of motor fuel from coal, has announced that its fiscal first-half profit has increased 81 percent on higher oil prices and a weaker rand.

Earnings attributable to shareholders for the six months ended 31 December 2011 increased by 83 percent to R13.9 billion from R7.6 billion in the prior year, while headline earnings per share and earnings per share increased by 81 percent to R23,50 and by 82 percent to R23,05, respectively, over the same period, the Johannesburg-based company said in a statement.

Chief executive David Constable said: “We are pleased to announce record interim earnings, which continues our strong track record of delivering superior shareholder returns. Our focus on cost containment and capital project execution continues as part of our strategy of sustainable value creation across our businesses in South Africa and abroad.”

Business

Harmony Gold unveils employee ownership plan Harmony Gold, South Africa’s third-biggest gold producer, has unveiled new shareownership plans.

Harmony plans to give employees who work for the firm up to 2.9 percent of its share capital.

The company said 33,000 employees below management level would benefit from the scheme.

Graham Briggs, CEO of Harmony Gold, said: “It is with great excitement that we announce the launch of Harmony’s employee share ownership plan

(ESOP), a venture that recognises the importance of the employees who sustain our business.”

The plan, he said, not only benefited Harmony’s employees, but also “enhanced the company’s close relationships with our unions”.

The National Union of Mineworkers (NUM) has majority membership at Harmony Gold.

Frans Baleni, general secretary of the NUM, said the union was impressed

by Harmony’s move to share wealth.

“The NUM believes each and every employee at Harmony to be deserving of a portion of the success to which they contribute. I’m pleased at the company’s acknowledgement of this fact,” he said.

Eurozone

Greece ratifies multi-billion bailout The Greek parliament has formally ratified a second eurozone bailout scheme worth up to 130 billion euros to save it from defaulting on its national debts.

The text was approved by 213 socialist and conservative parliamentary deputies and opposed by just 79 members from the communist left and far right.

The result was in little doubt

given the large majority, which the transitional government of caretaker Prime Minister Lucas Papademos can command.

The ratification came after Greece received a first payout of 7.5 billion euros under its second international bailout.

Greece received 5.9 billion euros from the eurozone and 1.6 billion euros from the International Monetary Fund. www.southafricamag.com

9

Business

Formal sector

employment

increases The number of people employed in the formal non-agricultural sector of the SA economy picked up in the fourth quarter of last year, Statistics South Africa (Stats SA) said, releasing its December Quarterly Employment Statistics survey.

It said the number of people employed in the formal sector increased by 23,000, or 0.3 percent, taking the number of people employed in the formal nonagricultural sector to an estimated 8.381 million in the fourth quarter, from an estimated 8.358 million in the third quarter.

The December Quarterly Employment Statistics survey also showed that an estimated 8.381 million people were employed in the formal non-agricultural sector of the South African economy in December 2011.

This reflected an annual increase of about 130,000 or 1.6 people compared with December 2010, an estimated 8.251 million employees.

SA is currently battling to reduce unemployment and eliminate poverty.

To meet the government’s target of creating five million jobs by 2020, the economy should be adding about 140,000 new jobs each quarter.

10

www.southafricamag.com

Sport

Pistorius not yet assured of London

2012 Olympic place Four-time Paralympic champion Oscar Pistorius is not yet assured his chance to compete against ablebodied athletes at the London 2012 Olympics, despite bettering the A-qualifying standard time twice this season.

In his latest superhuman feat, the 25-year-old, called the Blade Runner because of his carbon fibre blades, ran 45.20sec in a meet on March 17, which is inside the International Association of Athletics Federations (IAAF) A-qualifying standard of 45.30.

He ran a personal best of 45.07 last July in Lignano in Italy.

Both times are good enough to earn him a place in London.

However, each year’s qualification process starts anew which means that Johannesburg-born

Pistorius has to better the 45.30 mark once again after March 31 – at an international meet – to be eligible for selection for the South African Olympic team.

The ruling was agreed upon by Athletics South Africa and the South African Sports Confederation and Olympic Committee (SASCOC).

“He [Pistorius] still has to run the qualifying standard at an international meeting after March 31 as agreed with SASCOC and also compete at the SA Senior Championships in Port Elizabeth on April 13-14,” said an Athletics South Africa statement.

Pistorius was the first amputee to compete at the IAAF world championships in Daegu, last year.

Sport

White

Business

Smaller

tariff rejects increase

England

coaching job

South African World Cup winning coach Jake White has ruled himself out of the running to become England’s next permanent head coach.

White is nearly a year into a four-year deal with the Brumbies in Australia and says he will see out his contract.

He tweeted: “[It is] always hard turning down a chance to win a World Cup but rugby is about making the right decisions and that’s to stay with the Brumbies in Australia.”

for Eskom The National Energy Regulator of SA (Nersa) has announced it will reduce power utility Eskom’s average price increase to 16 percent for the period from the beginning of 1 April 2012 until March 31 2013.

As a result of the move, the average standard price of electricity will increase to 60,66c/ kWh, instead of 65,85c/kWh as envisaged in Nersa’s 2010 electricity price determination.

Business Unity South Africa (BUSA) welcomed the decision to grant Eskom a reduced tariff increase of 16 percent, down from the original 25.9 percent approved in the Multi-Year Price Determination (MYPD 2).

Eskom said Nersa’s decision would not derail the utility’s projects or affect its financial sustainability.

“The announcement comes at a time when BUSA had become increasingly concerned about the impact of increasing electricity prices on the cost of doing businesses in South Africa,” BUSA said.

www.southafricamag.com 11

Cabaret,

Cabaret!

South Africa Magazine meets South African-born singer Aletia upstairs.

By Susan Miller

12

www.southafricamag.com

Cabaret, Cabaret! ENTERTAINMENT

In the end a lot of your fans become your friends

F

or South Africanborn singer Aletia Upstairs life couldn’t be more of a cabaret.

Based in London, UK, since late 2007, she’s created two successful cabaret shows Miss Demeanour and In These Shoes that have played at a number of West End venues, and has released a couple of new albums of original material.

Her shows have been critically acclaimed and while she’s still busking away at becoming a world superstar, she’s breaking into the highly

competitive London scene with aplomb.

Born in Stellenbosch, with the ‘non-stage’ surname Badenhorst, the drama graduate from UCT is on a creative roll – and never forgets that it all started as a child performer in The Sound of Music at the Nico Malan Theatre.

And it’s not just venues and videos, with two days before enrolment was due this year she applied for and was accepted into an MA in Performance Design and Practice at Central Saint www.southafricamag.com 13

Martins College of Art and Design.

“I managed to find a way to do an MA in cabaret, and they were open to the idea that I continue doing cabaret,” she says.

Auditioning as a performer is always going to be different – the bulk of her work was sent in as Youtube clips, which were accepted by the administrators.

And as a part of the MA she’s on her way to Kerala, India with her class. Aletia intends to create a cabaret that is inspired by kathakali (a famous Kerala dance/ drama form) on her return, which she admits will be a challenge.

Famous for its use of fixed facial expressions and hand gestures to communicate a story, kathakali is far removed from cabaret but she wants to use it as an inspiration.

“Something of the kathakali spirit will be in there,” she says.

The class are going for two and a half months and all 14 members will concentrate on different

aspects of the dance form and take from it what is important to them.

“I will be the only one trying to make this into my actual MA project – to bring it into cabaret.

That’s my big project for the next few months. Our leader wants it to be a story created around the story of Pinocchio (he’s Italian) and I like the idea of working around a fairytale,” she says.

Indeed In These Shoes included aspects of Cinderella, Red Shoes and Dorothy from the Wizard of Oz and mixed up the shoe-related stories – melding fairytales with contemporary stories.

“A few friends suggested I should have been looking for shoe sponsorship or getting shoe designers involved,” she laughs.

Aletia intents to perform the show in India after finding that when she’s in a tight spot all she needs is ‘herself and her iPod’.

Keeping an eye on her musical output as well, she recently recorded a single ‘Catch Me When

FACT BOX Name: Aletia Upstairs

At a glance: Albums include Goin’ Back Home 5, Possibility and Urban Gypsy Singles.

Aletia also has Upstairs Productions to produce shows, CDS and corporate performances.

Her brother is Francois Van Coke of Fokofpolisiekar.

14

www.southafricamag.com

Cabaret, Cabaret! ENTERTAINMENT

Miss Demeanour there’s a section where the audience can choose which language they would like me to sing in and because I have got a lot of languages the choices range from Swahili to Japanese to Afrikaans!

“Also it’s such a multi-cultural city so you find different kinds of audiences for all kinds of material.”

“And where else can you do a show including the music of Weill, Brel and Sondheim, add in a bit of Shakespeare, Latin, stand-up comedy and puppetry and still find room for some Piaf and Liza Minnelli?”

Aletia has built up a dedicated fan base in the city and they follow her around to gigs. “In the end a lot of your fans become your friends,” she says, insisting this is not in any way sinister...

Sometimes I end up standing on the stage just watching audience members doing their thing

I Fall’ in the “fantastic, amazing” Milestone Studios in Cape Town, with the mixing to be done in London.

A visitor to Cape Town every year, Aletia brought both her shows over with her and regularly performs with the award-winning chanteuse DanieIe Pascal.

“She has even mentored me a bit and we are talking about doing something together, maybe in December this year,” says Aletia.

So what’s special about performing in London?

“The number of venues is amazing and also audiences like to interact. Sometimes I end up standing on the stage just watching audience members doing their thing. In

How do artists keep going in London?

“You diversify. I’m also part of a jazz trio (with a pianist and double bassist) and we’ve had quite a few gigs – sometimes admittedly providing the background music in restaurants and functions but it’s a good way to make money.”

What are the good and bad things about those kinds of gigs?

“The good part is I get to do some of my own songs. But then there are the requests for old standards like Summertime and Fly Me To The Moon – they’ve been done to death...”

What’s it like playing back-up to a meal in a restaurant?”

“You can end up feeling like you are a CD player but I love interacting with people so I usually end up getting their attention. After all I studied drama and I am also an actress so I make damn sure I have eye contact.

Every time they put their knives and forks down to clap, you’ve won!” END Keep up with Aletia at aletiaupstairs.com www.southafricamag.com 15

MkhABELA’S

MISSIoN:

Operation children’s hospital Seven years after it was first mooted by the Nelson Mandela Children’s Fund, Nelson Mandela Children’s hospital Trust’s cherished Children’s hospital in Johannesburg has taken a huge step forward.

By Susan Miller

16

www.southafricamag.com

Operation children’s hospital CuLTuRE

S

ibongile Mkhabela, CEO of Nelson Mandela Children’s Hospital Trust is nothing if not determined, yet even her tummy ‘is in knots’ when she thinks about the mountain that has to be climbed before the Trust’s cherished Children’s Hospital opens its doors in Johannesburg.

The project is finally on its way, seven years after it was first mooted by the Nelson Mandela Children’s Fund. Its Parktown location has been chosen ‘not too far from Wits Medical School and Johannesburg General Hospital’, KPMG has signed off on the business case and the government is on board to cover operational costs from 2014.

But as Bongi says, “we have collected about R200million and it’s an R1billion project.”

I asked her about the passion she and Mr Mandela feel for the project.

“Well, that’s hard because it’s not purely academic. My five-year-old son Lindokuhle was in hospital suffering terrible burns after an accident.

While I sat at his bedside in the ICU I noticed how children were together with adults in wards. I also spoke paediatricians who were tired out by fighting for their patients rights.

“Children after all are not simply little adults.

They have their own needs. In the 30 days that Lindo was in ICU I camped in the hospital, using toilets to freshen up. No-one had thought there would be mothers in a ward. It’s a mess!”

Tragically Bongi lost her son and said by the time she left the hospital she knew “how badly we were failing our children”.

And she was not alone in this feeling because many of the NMCF Trustees and Nelson Mandela too had been on the ward, watching over her son.

They were shocked to learn that there are only four children’s hospitals across the whole of Africa – two in Cairo, one in Kenya and, one in Cape Town serving nearly 450 million children.

As the then CEO of the NMCF, (a role she will return to when the Hospital is operational) Bongi was seconded to head up the NMCH Trust and says there was a ‘big push’ from Nelson Mandela to get the project going. “The old man was pushing for something that would be his legacy for children”. www.southafricamag.com 17

She’s passionate about making it happen. “It’s a chance for us all to make a contribution towards the welfare of our children and also for us to contribute towards something that a man who has never wanted anything for himself, wants so badly”.

A wonderfully warm person with an infectious laugh, Bongi has fond memories of working with Mr Mandela.

“I came to the children’s fund in 1999 when he was stepping down from being President. In 2001 I took over as CEO and got to work with him and account to him. He had amazing energy. I would get a call on Sunday morning at 8am and think ‘Oh God, what now?’ ” Long an advocate of children’s rights, she says the bond between Mandela and children is remarkable. “We have donors of seven who come to give because they love him, Lindo used to call him the ‘children’s president’.

Working closely with him you got used to being asked ‘but what do the children think?’ ”

at a glance Key partners in the Children’s Hospital include: National and Gauteng Departments of Health National and Provincial Treasury University of Witwatersrand Sibongile Mkhabela has also worked as the national co-ordinator of the Advice Centres Association, the National Programme Director of the Development Resources Centre and as a consultant for the United Nations Development Programme.

18

www.southafricamag.com

Operation children’s hospital culture

So what is the dream? “‘No child will be turned away due to inability to pay’. Eighty percent will be public patients and 20 percent will be private patients. Ten percent of the 20 percent will be from SADC countries paid for by their governments on the basis of bi-lateral agreements.

The other 10 percent will be children who are on medical aid schemes like my daughter and my granddaughter,” Mkhabela says.

Determination and passion have played their part throughout her life.

A Sowetan ‘through and through’, Bongi played a leading role in the 1976 Soweto uprising as a student activist.

In hindsight what does she think it meant?

“It was a defining moment. The response of the government was defining because even when we were planning the protest we never thought they would kill and that by the end of the day we would have Hector Pieterson and others dead. For me there was no turning back...”

The only female activist on trial for ‘sedition’ along with ten others, Bongi was among five activists sent to prison. “As I was sent down (she laughs at the expression), I thought to myself I can stay here physically but I don’t have to be here mentally or emotionally. It was a daily struggle to break you ...”

Sent initially to Kroonstad Women’s Prison, the “female equivalent of Robben Island”, she ended her sentence in Pretoria Central in solitude.

No child will be turned away due to inability to pay. Eighty percent will be public patients and 20 percent will be private patients. Ten percent of the 20 percent will be from SADC countries paid for by their governments on the basis of bilateral agreements. The other 10 percent will be children who are on medical aid schemes like my daughter and my granddaughter

“They described me as unmanageable,” she laughs.

The strength needed to get through her prison stay is on display when she talks about the ongoing work on the hospital project.

“We will be judged by the number of children helped and the number of personnel we have trained and also how we have changed the ethos of how our children are dealt with in all our facilities.”

I left our interview feeling uplifted and sure this would be so! END To find out more about the hospital or donate towards it please visit www.nelsonmandelachildrenshospital.org www.southafricamag.com 19

PoWER To ThE

people?

Labour brokers are a contentious issue, but, says Tim Downes, Coo of Capital Outsourcing Group, they are a valuable alternative to permanent employment, which is conducive to economic growth.

By Ian Armitage

20

www.southafricamag.com

Capital Outsourcing Group FEATuRE

L

abour brokers are contentious, an issue people really care about.

It is an issue that drew thousands out of work to marches in every province as part of Cosatu’s recent strike.

The tone was highly emotive: labour brokers are “bloodsuckers” whose activities amount to “slavery” and who treat workers as “commodities”.

“We will never understand the regulation of labour brokers, we want a total ban,” said Cosatu president S’dumo Dlamini at the union’s protest in Durban.

He said Cosatu had discussed the issue of labour brokers with the government. If its demand they be banned was not met, another march would be held in August.

“We don’t want labour brokers,” marcher Joshua Ngcobo said. “We want the government to get rid of them.

How can you work without benefits? That’s what happens with labour brokers.”

SACP secretary-general Blade Nzimande told workers that labour brokers had no place in the country, did nothing to impart skills to workers and undermined government efforts to educate workers Nzimande’s charge is that labour brokers are the main drivers of “casualisation of labour” and that their practices are “the absolute contradiction to the principle of decent work”.

They have “driven down workers’ wages and conditions of employment”.

They “do not create any jobs but sponge off the labour of others and replace secure jobs with temporary and casual forms of employment”.

The ANC Government however have reiterated that they will not budge on the party’s decision to regulate labour brokers and not scrap them entirely, irrespective of the criticism from its alliance partner.

The government is considering amending the Labour Relations Act to ensure that after six months, labour broker employees will automatically be deemed permanent employees of the broker with the full range of organisational rights and benefits kicking in; and enforce equal pay for equal work subject to a number of overriding conditions.

“The government has made firm proposals to amend the law on labour brokers,” says Tim Downes, COO of Capital Outsourcing Group, specialists in outsourced staffing, recruitment and HR solutions. “Government promised in its 2009 election manifesto to introduce laws to regulate contract work, subcontracting and outsourcing, and address the problem of the abusive practices of certain brokers.

“We’ll see new regulation on those and it will make a difference.”

Founded in 1985, Capital Outsourcing Group specialises in the supply of outsourced staffing, recruitment and HR solutions. It employs more than 22,000 temporary staff at any one moment and has an annual turnover of R1.4 billion.

With its well-established branch network, Capital Outsourcing covers all major centres in South Africa, as well as most southern African countries. It boasts longstanding relationships with an impressive list of bluechip clients across many industry sectors.

The company prides itself on a non-corporate, handson approach to business characterised by a decentralised structure, personalised service and rapid decisionmaking. Its centralised administration division consistently achieves an industry-leading pay accuracy of 99.5 percent, and consistently develops its systems to maintain this competitive edge.

In terms of our Broad Based Black Economic Empowerment score, Capital Outsourcing has an AAA rating from Empowerdex. www.southafricamag.com 21

“The issue with regard to labour broking is hotly debated,” says Downes.

“The debate is emotive.

“Yes, there are labour brokers who break the law, the same way there are employers and unions who break the law. This is not sufficient reason to ban all brokers.”

He says labour brokers offer an alternative to permanent employment. It provides a means for first time employees to gain experience and receive job training in specific skills.

It is argued that this is conducive to economic growth but many argue that it is not conducive to fair treatment of the labour force mainly as a lack of understanding of what proper labour brokers do.

“South Africa’s high unemployment rate is linked to the global economic depression where more and more companies can only take on fewer and fewer employees year on year.

This is exacerbated where SA is compared to international productivity levels. There is a real need for brokers as companies require labour for a limited amount of time so that they can match production 22

www.southafricamag.com

requirements to cyclical demand,” Downes says.

“We are currently facing a few political hurdles in terms of how the unions perceive labour brokers and they are flexing muscles. That presents a difficulty.

“However, people are still using labour brokers.

In fact, we personally, are hitting records. There is definitely a need for us.

“Labour broking is definitely an entry point into the labour market for many. What we are finding is that 30 percent of those we employ initially get taken permanent in the first year.

“For the unions I think it is an emotive thing.

However we pay union and bargaining council fees on all the sites where they are represented, in fact seven percent of our workforce is unionised.

There is a role for us as we represent those people who are not employed but there is a need for part-time employment.”

Does Cosatu really believe that by banning brokers they will force companies that can’t afford it to have more full time jobs? The obvious answer is no. If the

Capital Outsourcing Group FEATURE

local cost of labour becomes too onerous and not profitable they will mechanise or move production offshore.

“How do we see the year ahead?

What opportunities are there? Well, new regulation will come in and it will help reputable, respected players like us who abide by the rules.

“Also, we see a lot of growth in Africa.

We are seeing a significant inflow of capital into places like Mozambique, Angola and Ghana. We have been in Malawi for five years and there are opportunities in the DRC and Kenya.

“It is a case of continuing what we are doing in Africa.”

The continent is booming, Downes stresses, and there will “be a requirement” to get workers.

“What makes us successful? A few things, really. One is that we have invested

in technology in terms of getting the processes right and becoming transparent and fast moving. For me it is the ability to provide a smooth flow of information and to provide the backbone of a larger company – knowing we are reliable – yet having that personal service.

“We decided about eight years ago to go web-enabled. It means we can resolve queries quickly and operate out of remote locations.

“Also our de-centralised structure enables a highly personalised service and rapid decision-making. We are firmly committed to supplying the best staff – staff that will improve productivity and service. And we always work to achieve a thorough understanding of any clients’ business.”

To learn more about Capital Outsourcing Group visit www.cog.co.za. END

BANANA GROWER

Extraordinaire Umbhaba Estates’ founder, Roy Plath, is a vigorous advocate of free trade. he was instrumental in contributing to the deregulation of the then Banana Control Board in the early 1990s and says that government interference, even with the best of intentions, can have disastrous effects.

By Ian Armitage 24

www.southafricamag.com

Umbhaba FEATuRE

R

oy and Cheryl Plath founded Umbhaba Estates from scratch in 1979.

The entrepreneurial skills and qualities of the familybased management team have resulted in the prolific performance and growth of the business over the past 33 years, which is almost without equal in the agricultural sector.

Mr Plath is a banana grower extraordinaire and has grown his business into one of the leading agricultural businesses in South Africa. If you think farming bananas is an idyllic, easy life in a sub-tropical paradise, you are dead wrong.

Bananas are, in all honesty, a logistical nightmare - temperature sensitive and highly perishable products that need a lot of care and attention. In short they are one of the most labour intensive crops you can farm.

“As an individual grower we supply around 20 percent of the South African market with bananas. We deliver up to 1,500 tons per week, sometimes more, in peak season,” says Plath.

Umbhaba is much more than a banana grower. Bananas have a three-week window from the time of picking to being eaten by consumers. They grow, mature, ripen, must be picked, stored and delivered all year round.

Careful irrigation and accurate

temperature control play a major role in the growth and ripening but processing and transporting are relentless pressures.

“We prefer to remain in control. All ripening, transporting and marketing activities are done in-house. Our bananas are grown, harvested, packed according to customer’s specifications, ripened, transported and delivered to our customers in unblemished condition on a daily basis. We have become a vertically integrated business with numerous facets and specialised departments.”

we supply around 20 percent of the South African market with bananas. We deliver up to 1,500 tons per week, sometimes more, in peak season Roy Plath

This approach obviously pays off.

Umbhaba counts some of South Africa’s leading chain stores amongst its loyal customer base.

Plath is a passionate man, an outspoken advocate of free-market values and was instrumental in contributing to the deregulation of the then Banana Control Board in the early 1990s, after which other agricultural boards followed suit. He says that following the privatisation and scrapping of the various control boards and the ending of subsidies, government leaders, until recently at least, largely refrained www.southafricamag.com 25

Umbhaba FEATURE

from over-regulating business.

His business flourished as a result. “The deregulation gave us a relatively free-market environment in which to operate and that allowed our business to grow and provide more jobs as well as our customers to benefit from reduced prices and the improved quality that competition inevitably brings.

Government interference, even with the best of intentions, typically creates distortions.”

“It was not an easy ride, however,” Plath continues. “I had to grow my business through some of the toughest economic times including a period where the prime lending rate peaked at 24 percent per annum. I was over my head in debt and I received no preferential treatment or government allowances but where others saw danger I saw opportunity. The Grace of God, lots of hard work and a largely free market environment all contributed to the measure of success that I have been able to enjoy in this business.”

The benefits of a free market economy with minimal government interference are self-evident, he says. “A free market enables creativity and initiative to thrive and results in better business, more jobs and a higher per capita income as opposed to an environment of big government and over-regulation. Government intervention is seldom good, whatever the intention. State controlled monopolies have a very poor record of delivery. They generally achieve very little while causing massive inefficiency and waste. More regulation generally 26

www.southafricamag.com

I believe strongly in free market principles and believe they promote an environment where entrepreneurs are able to grow and flourish, bringing those they employ along with them and that means prosperity for all Roy Plath

Sunny Packs Manufacturing (Pty) Ltd is one of South Africa’s leading corrugated board and carton manufacturers. We supply the local market, commercial and agricultural, as well as export to other countries.

Sunny Packs is privately owned. We are situated at 48 Denne Road, Boksburg, South Africa. Our staff compliment is between 250 and 300 people, from specialists to labourers. Our factory manufactures corrugated board, and we convert this board into custom designed cartons/products for our customers. We have our own laboratory to test our board and boxes for: crush tests, burst tests, box compression testing etc. These results are made available to customers on request. We are currently busy with BRC accreditation.

Sunny Packs as a company operates within the complex and challenging economic and social landscape that characterizes South Africa. Added to this responsibility is the task of operating effectively in the global environment, and satisfying the demands of a wide consumer base.

Contact us for more information

t: +27 11 878 5920 f: +27 11 823 6951 e: sunnypacks@telkomsa.net susan.sunnypacks@gmail.com www.sunnypacks.com

Leading Edge in Corrugated Products

Umbhaba FEATURE

means less prosperity. There is adequate evidence throughout the world that free-market environments are the only ones that ultimately deliver a better life for all.�

Plath cites countries such as Germany, USA and the UK as examples of the benefits of free market and compares them to some of the worst such as North Korea and Zimbabwe where the majority of people live in abject poverty. “A free market can only flourish if there is freedom of association and freedom of choice in the context of a truly free society where individual rights are respected and protected irrespective of race or creed. A free market system relies more on competition and less on regulation.

Competition brings out the best 28

www.southafricamag.com

What counts are jobs for the poor and a vibrant free economy with as little red tape as possible

water, less risk Better quality, more profit Less

The Netafim range of irrigation solutions helps you grow more with less, reducing water usage by up to 40% Every drop counts Contact Netafim for all your drip irrigation needs: Tel: +27 21 987 0477

sales@netafim.net

www.netafim.com

Umbhaba FEATURE

in us by leading to high levels of innovation and the lowest prices.

There is a strong incentive for individuals to create, improve, and generate progress. Thus, economically speaking, a free market economy sees much more success than other systems.

“I believe strongly in free market principles and believe they promote an environment where entrepreneurs are able to grow and flourish, bringing those they employ along with them and that means prosperity for all. When our business grows, our people grow too. We give back. The majority of businesses do. Your people are your strongest asset. Without them you fail. You have to reward them.

Even small one-man businesses play an important role in a sound economy.

30

www.southafricamag.com

“I am nothing,” he says. “What counts are jobs for the poor and a vibrant free economy with as little red tape as possible.” Plath points out the sad reality that the people who suffer most when businesses become disincentivised due to onerous and excessive legislation are the poorest of the poor. “True profit is not something to be feared or to be ashamed of, because it works to the benefit of all. The only way to improve the standard of living of all South Africans is to grow the economy by creating wealth and this especially with the creation of employment opportunities.”

Umbhaba has an annual bonus scheme for all staff and constantly invests in training and upliftment.

“To enable an economy to operate at a high level, significant investment is required in order to support it,” Plath says. “Over the years we have invested large amounts of capital in the business and constant upgrading and technological enhancements have become part of our business model. We believe that we have developed a unique proposition to ensure that value is added to the economy and wealth is created for all of our employees.”

He notes, with concern, an increasing trend

PROUD TO SUPPLY

UMBHABA WITH QUALITY PACKAGING THE M7040 / M8540 NARROW A full-scale model change introduces re-engineered and redesigned M40-Series tractors ergonomically designed to provide optimal performance and comfort.

Good service Good advice 1 Plankie Street, Nelsprut Tel: 27 13 753 3631 email: info@rudamans.co.za

89 Main Reef Road Langlaagte P O Box 790 Crown Mines, 2025 Tel: (011) 830-0370 Fax: (011) 837-0899 E-mail: sales@airothene.co.za

Umbhaba FEATURE

by government towards overregulation and legislation. “If you over-legislate you end up bogging down rare and vitally important skills, you reduce the profitability of businesses as a result and you kill jobs. Instead of realising that business owners have a real necessity for and appreciation of workers and that a genuine cordial business working relationship must flourish and grow if the business is to succeed, the stance created by current legislation has become negative and destructive in that, too often, the employer/employee relationship is seen as one of two enemies colliding. That simply isn’t the case here. We are a family, all of us working together, for each other.

“There are challenges, but we meet them head on,” says Plath.

32

www.southafricamag.com

Umbhaba’s top-class transport fleet distributes its fruit across South Africa on a daily basis. Fuel and other costs have become a significant issue so drivers are trained to maximise fuel savings and are rewarded accordingly.

Despite the challenges, Umbhaba is an undoubted success and has become a fully-fledged family business in which the next generation is efficiently running the business on a daily basis, with all the hard work and sacrifices this entails. Its continuing success lies in a hands-on approach by Plath together with his family and management team.

And, of course, his belief in free trade.

“We are looking forward to the future. We would certainly like to grow the business and see our country grow. South Africans are a great people.”

When asked for a last thought he says, “Nkosi sikelel’ iAfrika. We need wisdom to go forward in our country, South Africa.” END South Africa Magazine would like to thank Roy for sharing his story. If you have a similar tale to tell or want to share your business experiences with us contact the editor – ian.armitage@southafricamag.com.

SMOKING THE

competition

34

www.southafricamag.com

British American Tobacco FEATuRE

British American Tobacco (BAT) South Africa is the local arm of uk-based British American Tobacco (BAT) group.

With over 100 years of history, the firm is South Africa’s largest manufacturer of cigarettes.

By Ian Armitage

J

SE-listed British American Tobacco (BAT) South Africa is a smoking superstar. Part of the British American Tobacco Group of companies, which operates in more than 180 countries worldwide, it is one of the foremost fast-moving consumer goods businesses in the country.

“BAT South Africa holds a unique position within the global tobacco group,” says BAT’s Radu Dobrescu, formerly Head of Operations in Southern Africa.

He told South Africa Magazine that, not only is BAT South Africa, with 24 brands, one of the company’s largest profit centres, with an enviable domestic market share of 86 percent, but it is also setting an example of successful cultural and structural change – while investing in becoming worldclass manufacturing operation.

In that respect, in the years to 2018, some £150 million has been earmarked for upgrades and improvements to BAT South Africa’s operations.

“In South Africa, the business in its present form was created following the global merger of Rothmans International, partly owned by the Rembrandt Group, and London-based British American Tobacco plc,” Dobrescu says.

In the words of one industry observer, “Without the acquisition of Rothmans International, BAT would have slid off the map of Africa.” www.southafricamag.com 35

Company name FEATURE

Olore debis ea parum repudis etur? Solorior sumquam eniminto est rectio idebitae latem dolorrum cone doles entintemquae iuribus aectecto dolo blam aut quas explict asperferum aut omnis ipsunt occabo. Endit eruptat acculpa comnitatur, sitiost, cus doluptas idera incto bea cuptatiis voluptaquam eumquas delessi temperiosame pelesequi simaio doluptati rempos alit labo. Nam, cum estem inti optatur simus sunti culleni mpernamus ut amus dolupti tectempedi blandis aliassincia voluptam etur alibus qui volorecaecto quias sequid ut aut omnimaxime esequissum doluptaerum volent ex est, volest rehent facium ut ent pratur, ommos ex everes aute officia dus maionse catibea im ideribus esto conseritas que plit utemoluptur?

Pelluptatem qui doluptas simporepre in cum acestrum dolorenditat lab idellaborro vit re vellecearis ma dia vellutem si sunt, amus dusandero quibusdae vit aut voluptatem nimaionseque ommolectur, quia volor re consequatur? Tat mo mossum acearum volorro occus, sequam sunt accus a si odigenient.

Ipsa nulpariscia verum et, quati non preptatur ad quiae perumqui culparumque placiis as explitiae niendi ab il im es veles culless invere, optio quaspiet fugit fugit as velibea venderc iandendis diciet eatiis expe sent, omnistem quas as culpariti simusam numenti nveribernate si dolut qui que est qui ditiore ruptaquis dolorestet mintus ent acim liquis et aci nat prerume pellor aut rest hiciamention 36

www.southafricamag.com

rehent quam doloreste quisquis ventorem quiae con postist utet eos repereh enitatio et lab ipsam sum ut voluptatias dollo quiandem venemporio etur, sam, optaquunt et volupta estibus.

Vit mil et alicia cus remperu ptatis repera niminia de voluptatur, omni dendebitiam, omnitatem con re et quisquam qui dolor moluptae dus utatata verferchil ma quation secuptat qui re, cus ut andis sunt veratempos este net latatur?

Lissitem voluptaquo cuptatem exceatur, suntionsequi aute naturiamus amus estiis aperferiant verestrum doluptionsed qui odigniae pos eos eic tet auta conet debis sum facerferitia dolora volo te ventium doluptatis quis dolupta turiostium aut ducimus dunteni hitionsed quas etuscit erundel itaturit que molupta sum eaque comnis ea por sinvers pellicatum aut que vendis sandi bea susae.

Taspient ut et volut as et ut volecto taquatus doluptium aborum eum volor alia sanis et, tem quist, con ent peribus.

Qui dollabor si ditatec totatem olecto maximagnis quam in pori is pliquiatecab is untiani doluptae quas doloreius il ipsum enduciu mquatio. Nequi as ped ute sandit omnis utate vendebis mos volore, con cum ventur, sita autem sus sinverro dolupta dolorporis dolo entium es molumque aces pra aut doleniet libustiur reptatur?

Quiduci sinciet ped moloria dolupis magnis maiores tiatiasit venest que reperunt ditat fugit facia cora quis de sape officatis expel ea dolorenimusa aut ent repe voloratur?

Ab imus aliqui con exerit, ulpa

British American Tabacco FEATuRE

EMPLOYER OF THE YEAR In 2011, BAT South Africa was rated as the ‘Best Employer in South Africa for 2011/12’ by the CRF Institute in its annual Best Employers Certification Index.

The research showed that “BAT South Africa has outstanding HR policies and excellent working conditions”.

The company has built a reputation as a sought-after employer by focusing on employees as people with needs and dreams.

Referencing the company’s work in this area, Clifford van der Venter, BAT South Africa’s HR Director, said in a recent interview: “There’s an underlying belief that it is great people who make great companies great. You can have the best strategies, the best products and the best brands but at the end of the day it’s the people that make the difference.

“One of the things that enables organisations with our kind of history to remain at the top is a constant renewal, and that has to happen through people. So we have made a deliberate decision to go out and find additional talented people.”

38

www.southafricamag.com

over the years we have continued to put maximum effort in growing and nurturing our diverse talent

Shifting Gears The IMPERIAL Logistics Story

Combining consistent fundamentals with tangible value-add and delivering fast moving, forward thinking logistics and supply chain solutions.

• Largest southern African LSP with established International footprint and reach • Largest employer of industrial engineers and logistics professionals • Providing dedicated and consolidated warehousing • National distribution footprint – Annually, Southern African fleet travels the equivalent of 545 times to the moon and back • A choice between owned fleet and large sub-contractor base • Access to the appropriate mode of transport whether air, sea, rail or road • Supply chain management optimisation and integration through strategy formulation, operations improvement, people alignment and technology enablement

Winner of the 2011 Mail & Guardian Greening the Future Awards

Companies and Organisations with Innovative Environmental Strategies that Improve Business Performance.

Transport & Warehousing | Consumer Products | Specialised Freight | Integration Services | Africa

www.imperiallogistics.co.za

Tel: +27 11 821 5500

British American Tabacco FEATuRE

Every year between four to 10 graduates are recruited for a two-year Management Trainee programme.

BAT South Africa makes a similar investment in its Growth Academy, an extensive development programme for existing employees with high potential.

“Over the years we have continued to put maximum effort in growing and nurturing our diverse talent to ensure that we have an excellent leadership pipeline in place.

This effort focuses on training and development in the workplace as well as through structured internal and external programmes, aimed at building strong, individually minded leaders who will engage, motivate and inspire our organisation to stand tall in what is undoubtedly a challenging but exciting industry,” said MD, Brian Finch, recently.

CONTINUALLY INNOVATING BAT South Africa is constantly reviewing, renewing, refreshing and innovating its products, the way it does business, the way it operates and, in particular, the way it goes to market.

Several years ago the company moved to a direct sales model to have more direct interaction with its customers.

Another area of huge innovation is working with the South African Police Service and the South African Revenue Service to crack down on the illicit cigarette trade.

40

www.southafricamag.com

IMPRESSIVE DESIGNS Choosing a display vendor is like choosing a business partner. Our quality, service and attention to detail using the latest technology (CNC routers, laser & diamond polishing machines) ensure your product is the best. If you can imagine it, we can probably make it with our more than 25 years of experience and our in-house design team.

Since its founding in 1985 IMPRESSIVE DESIGNS cc has become one of the leading manufacturers of high quality display and literature products.

Our success can be directly attributed to our being an owner managed business, with the owner being supported by an able and enthusiastic team, this leads to attention to detail, prompt service and strict quality control.

Our web page and catalogues reflect our sincere desire to inform, earn, and keep the trust of our clients and their business.

We look forward to serving our clients’ needs while building a lasting and ongoing partnership with them.

We have a wide - and ever growing - range of quality products, and we also cater for customized speciality products to meet our customers’ requirements, specifications and special needs.

Our product range is too numerous and varied for us to be able to mention everything here, but we list details of some of the more popular ones here :Standard Products Single & Multiple Brochure holders, Menu & Business Card Holders, Store display, Point of sale units, Ticket holders, Shelf display stands Special Products Perfume and Cosmetic Display, Ticket Holders, Keyrings, Magazine Stands, CD Racks, Photo Frames and Spectacle Display Systems.

Our customers include :- All leading retailers in South Africa, Supermarkets, leading Shopfitters, Advertising Agencies, Sports shoe companies, Perfume and Cosmetic Houses, Eyewear companies, and many more companies needing to display their goods in Retail Stores and Shops.

PLEASE NOTE THAT WE ARE A LEVEL 1 BEE CONTRIBUTER TOGETHER WITH A 1.6 VALUE ADDED BONUS. If you don’t see what you want here please contact us, because in most instances, if you can imagine it – we can design and make it :Phone

021 592 1270 (International 027 21 592 1270)

Fax

086 5811 222 or 021 5916 480 (International 27 86 5811 222 or 27 21 591 6480)

E-Mail

impdes@iafrica.com or rico@impressivedesigns.co.za

Web page www.impressivedesigns.co.za

British American Tabacco FEATuRE

The issue forced BAT South Africa to look at its offering in the lowprice segment.

“Every year, over R3 billion in tax revenue is lost due to illegal cigarettes,” BAT South Africa said in a recent press release. “That’s the equivalent of the cost of more than 44,000 new policemen or 60,000 new homes.”

In response, it introduced a priced-marked pack to inform consumers of the recommended price of its lower-priced brands.

WHERE NEXT? In terms of future expansion, the export market, into Africa and the Middle East, remains a key focus for strategic growth and development.

Empowerment is another key focus. BAT South Africa is currently a Level 6 Contributor and has various initiatives and targets in place aimed at improving this score on an annual basis.

42

www.southafricamag.com

MPC Recruitment Forging exclusive recruitment partnerships with key clients is proving highly successful for MPC Recruitment and its partner companies, including BAT. “The relationship can become so efficient that the agency will proactively track available positions, while also communicating with HR managers throughout the organisation on a regular basis to inform them of available talent, trends, statistics and news in the industry,” contends Hough Joubert, MD of MPC. “The best possible and most well-matched talent, matching the job specification exactly, is presented”.

This partnership strategy is resulting in an increased quality of staff to partner companies with a reduced recruitment cost and a faster turnaround time.

mpc recruitment

MPC Recruitment can offer: In-house business partnerships for complete, partial or project recruitment National footprint – 7 branches in major cities Generalist agency with in-house industry specialists Flexible range of permanent, contract and short term recruitment solutions Certified BBBEE Level 2 status Proud member of APSO Fingerprinting facilities in all branches for credit, criminal and qualification verification

Fingerprint Scanning Another value-added service from the MPC Group!

Durban

031 562 8001

Cape Town

021 552 8048

Johannesburg

011 706 9042

Nelspruit

013 741 2593

Pretoria

012 658 0758

Port Elizabeth

041 367 4666

East London

043 748 2098

f in

www.mpc.co.za

The firm spends more than R30 million annually on corporate social investment projects, mainly in the areas of empowerment, sustainable agriculture, civic life and HIV/AIDS. BAT South Africa wants to “smoke the competition” by having its customers light up and keep the flame burning. In 2004 it celebrated 100 years of business in South Africa. “Our success in the country was not achieved by accident. The company became a leading business from its inception in 1904 and we believe that we have retained many of the qualities that initially helped place us at the forefront of our industry,” the company’s website says.

To learn more visit www.batsa.co.za. END www.southafricamag.com

follow us on!

Since 1998, the MPC Recruitment Group has been pioneering and providing an innovative and flexible range of recruitment solutions to many of the largest corporate companies in South Africa. MPC believes that transparency, integrity, trust and an in-depth knowledge of their clients’ businesses are the cornerstones of success. Proof that this philosophy works is that the MPC Group now boasts a national network of branches in major cities, with further expansion in the pipeline.

contract wins BoPhELoNg CELEBRATES

B

ophelong Construction has enjoyed a good start to the year, winning new contracts totalling R104 million.

Director Andrew Oelofsen says the contracts include the upgrade of Allandale Road in Midrand and work for Anglo Platinum in Limpopo.

Bophelong won the construction contract worth R30 million with Anglo at the end of last year, Oelofsen says.

Bophelong currently has an impressive number of completed projects in its portfolio, mostly in Gauteng.

“We won three big contracts at the end of 2011. We, as a business, cover everything from road works – including road maintenance, earthworks and

44

www.southafricamag.com

project management – to the installation of municipal services, sewer, water, minor concrete works and building works. In fact, through partnering with industry associates, Bophelong can provide a full turnkey design and construction service, providing the perfect solution for any construction project.”

He says the work being undertaken on Allandale Road will address traffic congestion issues on what is a very busy road.

“It is part of the Waterfall Development being constructed in Midrand, which is a huge property development. It will be mixed-use consisting of housing, a shopping centre near the Allandale Road turnoff, a retirement village, a hospital, schools and a business park.

“That contract is a high value contract, worth R40 million. Once the residents start buying

Bophelong Construction FEATuRE

Three recent contract wins have given mid-sized construction firm Bophelong a great start to 2012, says director Andrew oelofsen.

By Ian Armitage

property and move in, we’ll have a lot more traffic in the area, on Allandale Road in particular, which is the main feeder from the freeway. Now our role is basically to upgrade the road so it can handle the future volumes and throughput. We will be upgrading and widening Allandale Road, constructing a new intersection and relocating a bulk water line. It is a big project.”

It is due for completion in 2012, he says. But it is a project not without challenges.

“What makes the job slightly more complex, besides the large volumes of existing traffic, is that there is a massive cut that has to happen. We have got about 170,000 cubic metres to cut out of the existing road - and that is where we are stuck at the moment. We would like to climb into it and start moving that material but we can’t because there are a lot of services running in the cut. They have to be relocated prior to us doing those bulk excavations.”

Anglo Platinum is a company Bophelong has worked

with in the past. In December it was awarded a R30 million, eight-month contract, which will see it construct a car park, earthwork platforms and water dams at its Hackney and Twickenham shafts.

“That’s up in Limpopo,” says Oelofsen. “The work will be at two shafts, Twickenham and Hackney, which are a few kilometres apart. They are platinum mines that require infrastructural upgrades in order to improve their mining processes. Both of these shafts have packages of work that will we be doing – building www.southafricamag.com 45

Bophelong Construction FEATURE

dams, waste dumps, and roads, parking areas.”

These mines account for about 40 percent of the world’s platinum output and are very safety focused.

This is an exciting aspect of the contract, says Oelofsen.

“They have incredibly high standards. You have to rise to the occasion there. If they find any of your personnel working unsafely, they’ll stop the project. You have to be trained and monitored constantly and they are very strict in terms of occupational health and safety and the environment.

But look, this is normal. It is a very nice job, a nice secure job to work on, and an extremely good client to work for.”

The final recent contract win was with the Johannesburg Road Agency (JRA), a contract worth R34 million.

The JRA has embarked on a project to upgrade gravel roads to a surfaced standard in the informal settlements of the greater Johannesburg municipality.

“You might think all roads are the same,” says Oelofsen, “but this is very different to the Allandale Road project. The JRA has awarded us the Orange Farm project on a design and construct basis. Orange Farm has terrible infrastructure, which needs upgrading. It is a big project, a complex project. We were awarded that at the end of last year. We have been on site now for about two months. Construction is well underway there.”

Beyond these, Oelofsen is optimistic of securing more work soon. “We have a fair bit in the pipeline. We were very busy 46

www.southafricamag.com

towards the end of 2011 when it came to tendering.”

Founded in 1984, Bophelong is a real homegrown success story. It was formed by Bryan Westcott as a family business in partnership with his brother-in-law, and chartered accountant, Andrew Vos. Originally, Bophelong was engaged in very smallscale work, such as building driveways and shopping centre car parks and went on to be involved in more complex construction work for the 2010 Soccer World Cup. Bophelong is based in Randburg, Gauteng, and close to 90 percent of its work is carried out in the province.

The balance takes place in the Limpopo Province.

The company’s client base is apportioned according to a 70:30 ratio, with the majority of its work coming from the public sector, and the balance being sourced in the private sector.

“Work for municipalities, such as building roads, is a good, steady, reliable source of income,” Oelofsen says. “What really sets Bophelong apart in the eyes of its clients, other than its ability to successfully take on projects big or small, is that we can work well under pressure, delivering projects on time, within budget and according to specification. The level of customer satisfaction in this area is so high that we have won contracts even when our bid was higher than some competitors’. We also look to avoid the escalation of any problems, preferring instead to work together with consulting engineers and the client to overcome these challenges.”

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

END

TJDR 51762/E

APARTNERSHIP SOLID STARTS

WITH A LONG-TERM

VISION Behind every successful partnership is a solid vision.

Which is why we at PPC, are not only proud to be associated with Bophelong Construction, but would also like to thank them for their continued support as we seek to create pillars of success together.

Our strength, Your vision.

STEEL RESoLvE AND PRoFITS WITh hoNouR

48

www.southafricamag.com

Pro Roof FEATURE

At age 11, Rafik Mohamed might not have realised the extent of his entrepreneurial spirit as he sold fresh produce from door to door, but some years later his passion for business lead to South Africa’s major independent Steel Merchant Company - Pro Roof. Mohamed’s strong core beliefs in hard work, valuing his employees, and maintaining his personal honour in all things formed the foundation of this R1 billion industry.

By Colin Chinery

M

ost entrepreneurs will reminisce on the early exposure to trading and the corporate world, true to the fact that a fire begins with an early spark. Thirteen-year-old Bill Gates was programming computers when the idea of a personal computer was born, which lead to Microsoft, while his British counterpart Richard Branson’s first profitable business venture was a magazine called Student at the age of 16 which later resulted in the global Virgin brand.

Rafik Mohamed’s journey started at an earlier age, when at just eightyears-old he began selling fresh produce from door to door in the small farming town of Brits in the North West Province.

Like many entrepreneurs he reminisces how he left school in his matric year to support his family and look after his sick parents. “I gave my father R1100 - the profit from months of trading. This made him very emotional, a moment I would never forget. From that point I learnt the basic purpose and principles of business, something that no school or university can teach.

“The telling lessons he enriched in me is that my name is the most valuable asset,” he says, with a lump in his throat.

Mohamed also marks this very sentimental moment as the “glue that bonded him to his father”.

Months later he suffered the loss of his role model father and took the reigns of the family and its responsibilities.

Day by day this enthusiastic entrepreneur reminds his staff that money will be made and money will be lost, but emphasises that once their name or reputation is lost they lose much more.

Shortly after taking over his father’s www.southafricamag.com 49

Pro Roof FEATuRE

hardware store Rafik Mohamed saw an opportunity in demand for roof sheeting. Without hesitation he approached a steel company and proposed the idea of opening a roof sheeting manufacturing business. They accepted and in 1988 Pro Roof Steel was founded.

“I was the driver, manufacturer, machine operator, order taker, accountant and receptionist… I was Pro Roof.”

He was loaned R30,000 to buy steel and traded 3,000 tons in the first year. “My strong customer base and support from the people around me made it easy to break into the market,” says Mohamed.

The company reported a growth rate of 40 percent and a net profit of R1 million in its first year of trading, a clear signal that he was spot on with his over ambitious projections.

Fast-forward to 2012 and Pro Roof Steel is now one of the largest, most prominent steel merchants in Southern Africa, being a key player the steel industry.

From a roofing company, it has expanded into a wide array of steel products commonly used in its operating markets including welded universal columns and beams, fencing and wire, tubing and cold formed as well as roofing solutions. Pro Roof’s processing and servicing centres headquartered in Vereeniging employ 700 people and regional branches in Cape Town, Pretoria, Durban and Nelspruit create a network and infrastructure to supply the demand of the growing South African economy. Monthly production is in access of 15,000 tonnes a month.

50

www.southafricamag.com

Unsurprisingly, Rafik Mohamed was a finalist in the 2009 Ernst and Young’s World Entrepreneur Awards, South African Best Entrepreneur category.

“It was an honour,” he says.

JSE-listed Andulela Investment Holding Limited, recently acquired shareholding in Pro Roof Steel Merchants. “In line with managements strategy the investment in Pro Roof has been identified as a suitable investment for Andulela,” the company said. “We see our steel side going further downstream,” Rafik Mohamed explains.

“Over the next three years we plan to open over 30 retail outlets nationally, and through that network selling our entire basket of products.”

While the steel branch has just seen a further acquisition, diversification is pursued outside as well as within this sector, most recently into mining, with a platinum scaling

operation agreement with an Anglo American subsidiary.

In recent months the company’s biggest growth has been in property management and development, which Mohamed introduced in 1998. His property division - Changing Tides focuses on industrial, residential and commercial property, including affordable housing and student accommodation.

While there are developments in the exclusive residential northern suburbs of Johannesburg, Hoosien Mohamed, the MD of Changing Tides, prefers supplying the demand for the lower-end of the property market. The attention to detail and high building standards set Changing Tides apart from its competitors, as it continues to gain market share. “Being an independent we are able to react to trends and opportunities, which our competition can’t do,” says Hoosien Mohamed.

The entire group is committed to growth and the determination to succeed

For your steel and finance requirements contact us at: Jan Bosch Johan van Rooyen Steel Source Africa (Pty) Ltd Steelinvest Group Off: +27 11 6970003 South African Office Mob: +27 82 881 9064 Mob: +27 825511856 Fax: +27 86 672 5787/+27 11 697 0110 johan@steelinvestgroup.com jan@steelsource.co.za www.steelinvestgroup.com · Traders of long and flat products to the Steel Industry · Providing finance and logistical solutions in collaboration with first class steel producers · Office Locations: Houston, Johannesburg, Antwerp, London, Paris, Dusseldorf, Dubai, Istanbul, HongKong, Shanghai, Singapore, Delhi · Established in 2002 · Service Center in Antwerp, Antwerp Decoil Center, Capacity of 280'000 mt per year in high grade steel for special applications · Trade Finance company: Westford Trade Services · Operational in Africa since 2007

Pro Roof FEATuRE

has translated into an ever-expanding customer base as well as a constantly increasing array of capital equipment. Every decision maker and manager subscribes to a philosophy of transparency, accountability, integrity, excellence and innovation in all their business dealings. This Rafik Mohamed still monitors personally. Quality, service and pricing are Pro Roof’s trademarks in a market where competition is severe, he says.

“It’s extremely fierce. This is not an easy industry and the challenges can be great.”

Asked about perennial skills and training he says the effect of the government’s skills levy has been positive. “But the question is whether or not people capitalise on it, use it to empower themselves and advance.” Rafik Mohamed comments on the ability to retain quality staff and management, “To do this you must share. We believe in empowering people, building relationships and improving lives, and entrepreneurship with incentivisation, decentralised management that communicates.”

Rafik is confident that Africa will be the global centre and driving force for opportunity and future success. He explains, “Europe and the Americas is in a mess. In Asia or the Gulf you are a small fish in a big 52

www.southafricamag.com

ocean. In Africa you are a big fish in a pond.”

Is South Africa a pivotal place in this “brave new Africa”?

“Absolutely! We are a springboard into the rest of Africa,” he answers.

“We might have some third world issues but our first world infrastructure makes this country unique. As time goes we are seeing more global entities and brands using South Africa as a gateway to the African continent, taking full advantage of the excellent infrastructure.”

Rafik acknowledges the gaps that need to be addressed in promoting and giving opportunities in Africa. “I don’t think entrepreneurship in South Africa has matured its potential, nor is it being fully promoted.”

The growth plan for Pro Roof is unambiguous. “If we size our selves up to our competitors then our ambition is to be among the three biggest industry players in South Africa. It’s all about hard work, commitment, and integrity.

Our growth has come about through honour. What’s most important is one’s credibility and this is the fundamental principle in my business. I look after the legacy that my dad left me and teach the Pro Roof team and my children that the most credible thing in life is your name. You are who you are. It’s not money.

Lose your name and you’ve lost everything. In the context of your business you build bridges, you don’t burn them. My ultimate success will be determined by my ability to permanently enforce this philosophy which I lived by.” END

INSURANCE & RISK MANAGEMENT There is strength in numbers and our strength is complemented by our association with the leading product providers who support our vision and business.

We are proud of our association with Pro Roof Steel.

Contact Us Tel no: 011 442-6160 Fax no: 011 442-5936 email : admin@vanflymen.co.za www.vanflymen.co.za

We provide the following policies:

Short Term Insurance · · · ·

MATERIAL DAMAGE ACCIDENT · CONSEQUENTIAL LOSS LIABILITY · TRANSIT MOTOR · DOMESTIC

Marine Division · · · ·

IMPORTS · EXPORTS GENERAL TRANSIT SMALL CRAFT ADVANCE LOSS OF PROFITS

Specialised Risk · · · · · ·

ALTERNATIVE RISK TRANSFER CONSTRUCTION & ENGINEERING PROFESSIONAL INDEMNITY GUARANTEES-ENGINEERING & FINANCIAL FINANCIAL GUARANTEES BROADFORM LIABILITIES

DJ HARDWARE

Proud to be associated with Pro Roof Steel

Contact us today!

DJ Hardware PO Box 397 Blantyre Malawi Tel: 00265 888 834 729

right path BACk oN ThE

B

P is the second biggest integrated energy company in the world and its history in South Africa reaches back over 100 years, where it has consistently been a leader in terms of direct investment and wealth creation.

BP Southern Africa (BPSA) has its head office in Cape Town and is the third largest of seven oil companies operating in the country.

“BP Southern Africa engages in refining and marketing of fuels and lubricants,” an industry expert told South Africa Magazine.

BP is committed to South Africa.

A global merger with Castrol in 2000 has made an enormous impact on BP’s lubricants business in Africa and BP is today a world leader in the

54

www.southafricamag.com

development of cleaner fuels and renewable energy.

It is also pioneering technologies for the hydrocarbons in the production of cleaner power whilst employing the latest technology to minimise carbon emissions in hydrocarbon exploration and production.

A R40 million fuel technology centre in Johannesburg is developing cleaner fuels for the South African market.

“The centre is part of our long-term investment strategy into the country, which we view as a key growth market,” BP says. “We want to develop world class fuels value chains with an integrated offer to our customers utilising our market positions.

“The centre is one of only four in the world belonging to BP,” it adds. “We want South African consumers to have access to BP’s best available fuel technology, and the centre will ensure that

BP Southern Africa FEATuRE

global fuel giant BP is committed to SA and adding value to consumers’ lives, while developing cleaner fuels.

By Ian Armitage

the fuels developed for the local market remain unparalleled in quality and performance.”

BP has spent more than R500 million on growing its forecourt infrastructure, expanding fuel delivery capacity and optimising refining in the country.

The centre operates under a similar model to those in Germany and the US, focusing on quality assurance, technical service and marketing support for the local market, and plays an important role in the next phase of SA’s cleaner fuels agenda.

South Africa is very important to the BP group and is one of BP’s best performing markets.

ASSET SALE In 2010 and 2011 BP upped its attempts to position itself for the future, confirming a $296 million deal through which it would sell its fuels marketing businesses in Namibia, Botswana and Zambia to Puma Energy, as well as its 50 percent interest in each of BP Malawi and Tanzania.

“Puma Energy has agreed to pay BP a total of $296 million in cash, subject to certain postcompletion price adjustments,” a BP statement said.

“The sales do not include BP’s refining and marketing businesses in Mozambique or South Africa,” the statement added.

Puma Energy has operations in over 25 countries, including several in sub-Saharan Africa.

The decision to divest these businesses followed a strategic review of BP’s southern African refining and marketing businesses, BP said.

BP also announced its intention to sell its liquefied petroleum gas and tank-filling operations in various countries including South Africa.

BP said it intended to sell its LPG bottles and tank filling operations in Portugal, the UK, Austria, Poland, Netherlands, Belgium, Turkey, China and South Africa, as well as its non refinery-integrated wholesale business.

Also included in the sale is LPG storage terminals, bottle-filling plants, customer lists, operating licences and logistics assets.

It intends to retain its autogas business in Europe and move it into the Fuels Value Chains, and maintain LPG wholesale outlets to support its refinery operations.

The LPG bottles and tank filling activities will continue to be managed as a global business until sold, BP said.

BP expects to complete any deal by the end of 2013, subject to regulatory and other approvals.

NEW CEO FOR SOUTHERN AFRICA BP has also seen several changes at management level in Southern Africa. The unit appointed Gerard Derbesy as its chief executive officer in September 2011.

Derbesy, formerly head of planning performance reporting for refining and marketing, has a www.southafricamag.com 55

BP Southern Africa FEATURE

wealth of refining and marketing experience in the oil industry. This he gained from over 15 years in a variety of roles in continental Europe, the United Kingdom, and the United States, with responsibility for areas including refining, commercial optimisation, supply, and marketing.

BP’s southern African unit also named Priscillah Mabelane as chief financial officer and Alph Ngapo as chief operating officer.

The appointments followed the announcement of Thandi Orleyn as the company’s new Chairperson and were in line with BP’s succession plan policy to achieve transformation in the industry.

Of the appointments, BP said, “BP remains committed to ensuring transformation at all levels within the company and industry at large and will continue to make the appropriate and adequately-skilled appointments.

“We also have every confidence in these new appointees’ abilities to add to what is already a strong team at BP, capable of continuing to deliver and contribute to the company’s growth strategy and the country’s energy needs.”

56

www.southafricamag.com

We want South African consumers to have access to BP’s best available fuel technology, and the centre will ensure that the fuels developed for the local market remain unparalleled in quality and performance

A global turnaround Earlier this year, BP declared itself “back on the right path” globally following the difficulties of the Gulf of Mexico oil spill with annual profits bouncing back from a $3.7 billion loss to a $25.7 billion profit.

“BP is on the right path,” said Bob Dudley, the chief executive who took over from Tony Hayward following the Deepwater Horizon accident.

“2012 will be a year of increasing investment and milestones as we build on the foundations laid last year. As we move through 2013 and 2014, we expect financial momentum will build as we complete payments into the Gulf of Mexico Trust Fund, restore highvalue production and bring new projects on stream,” he added.

To learn more visit www.bp.com.

END

THE AGENCY P26325 250X180

Moving our economy in the right direction

Transnet is moving towards a world-class and sophisticated rail network that facilitates the delivery of coal, iron ore, manganese, cars, liquid b u l k a n d c o n t a i n e r i s e d g o o d s . We transport huge amounts of freight every day to help sustain and grow our economy.

So the next time you see a Transnet logo, chances are that the vehicle you are driving spent time on one of our trains. We’ll stop at nothing to keep everything moving.

Did you know? Every day Transnet Freight Rail moves freight along its approximately 20 500 kilometre rail network – of which 1 500 kilometres comprises heavy haul lines for export coal and iron ore.

www.transnet.net

C O N T I N E N TA L

S H O W S C OA L IS ST I LL

ENERGY’S The black diamond is not green’s best friend, but for energy users worldwide its popularity is running high and growing.

And for thermal coal producer Continental Coal, Africa is the big resource and Asia the market focus, as CEo Don Turvey tells South Africa Magazine.

By Colin Chinery

58

www.southafricamag.com

VIP

E

nvironmentalists may bark but the coal wagons roll on. And on. In the past 10 years global coal consumption has risen by close on 50 percent and will continue to grow through this decade. Greenhouse gas emission bad hat it may be, but King Coal is standing his ground against the Green Knight.

China accounts for nearly half of global demand and analysts see a massive increase in imports from 175 million tonnes to around one billion by 2030. Adding to this fellow Eastern rising star India is forecast to increase its imports by more than five times to at least 400 million tonnes over the same timespan.

The passage of the Kyoto Protocol in 1997 may have contributed to rising Asian coal consumption by encouraging countries to reduce their own CO2 emissions while not discouraging countries from importing goods made in countries using coal as their primary fuel for electricity. Go figure.

“Whether people like it or not, coal is still one of the cheapest forms of energy in the world,” says Don Turvey, CEO of South African thermal coal producer Continental Coal, with a project portfolio in South Africa’s major coal fields. Used

Continental Coal FEATURE

in power stations worldwide to generate electricity, thermal coal’s importance is set to continue, fuelling an estimated 44 percent of global electricity in 2030.

Formed to take advantage of the robust domestic and global demand, and with particular focus on Southern Africa, Continental is targeting production from its portfolio of predominantly export thermal coal mines of 10Mtpa ROM by 2015.

Already listed in Australia, last year Continental placed its ordinary shares on the London Stock Exchange’s Alternative Investment Market (AIM), a move Turvey says will enlarge its international profile and engagement with additional European funds and institutional investors.

Continental Coal currently has two operating open cast coal mines, the Vlakvarkfontein and Ferreira, producing close to two million mt per year of thermal coal for the export and domestic markets. A third, Penumbra a shallow underground mine project started last September - is scheduled to begin export production in the third quarter of this year.

And with a Bankable Feasibility Study completed, a fourth mine - the De Wittekrans Coal Complex Project - is set to become the company’s largest new development.

Others initiatives include the Vlakplaats coal project under an agreement with major global coal investors Korea Resources Corporation (KORES), and a black economic empowerment (BEE) partner.

Whether people like it or not, coal is still one of the cheapest forms of energy in the world Don Turvey

www.southafricamag.com 59

Continental Coal FEATURE

“We’ve got a long and strong project pipeline in South Africa, about 65 million tonnes of classified reserves and over 600 million tonnes of resources. A big factor is that we are operating in an established coal mining area, not especially challenging and well supported by rail, road, and power.”

Over the border in Botswana are three further projects, which Turvey sees as a longer term play.

“A domestic market is starting to develop there and we have an exploration target of over two billion tonnes. Here too exports are a key, but this will only happen once there is a rail and port link. Coal mining companies are putting pressure on Government to establish a rail and port network, and there are a lot of initiatives taking place involving private companies from China, India and elsewhere in the East involved.

“At present while we haven’t any assets in Mozambique, Tanzania or Kenya, we’ve been looking at projects - coking coal in Mozambique, and in Tanzania and Kenya most probably thermal coal.

We are focused around the east side of Africa with a view to the growing market in Asia.”

60

www.southafricamag.com

Continental is focused on both export and domestic sectors. “The latter is very important, supplying domestic customers such as Eskom, with whom we recently signed a long term agreement. At the same time exports are a key from a revenue perspective and adding a lot of value if you have the projects to support.”

Coal, says Turvey, is a necessary and responsible partner in the energy supply mix. “Whether people like it or not, coal is still one of the cheapest forms of energy in the world. It’s still the dominant supplier of energy, and over the years we haven’t seen any slow down in sea-borne export growth - in fact year on year there’s a continuing growth.

“It’s the same on the domestic side. The building of two new coal fired power stations is evidence of that growth.

The replacement of production to Eskom in the next two to five years will create further potential for supplies.

“The fact is that the other alternative sources of energy cannot keep up with the growth in demand - especially the renewables. We are not antirenewables or anti-nuclear, there’s a space for all of it, in fact we see nuclear and renewable energy resources’ increasing their share of the total energy mix. But this doesn’t mean coal will diminish, in fact in many places it will increase. There’s a worldwide growth in demand as more nations urbanise and industrialise. Then you have countries like Germany that have turned against nuclear.”

At Joy Global, we’re taking mining to the next level.

Long recognised for efficient and reliable equipment, we’re taking the mining industry to even higher levels with the development of cost-focused technologies.

Our global interface enables us to reduce risk management, analyze productivity and monitor machine health. Joy Global’s Smart Services is designed to optimise mining systems, boost performance and maximise production — all at the lowest cost.

Through our proven solutions, customer partnerships and extensive aftermarket support, Joy Global continues to take mining operations to the next level.

www.joyglobal.com Zero Harm Mentality • Most Productive Mines • Lowest Cost

Joy Global (Africa) Headquarters 1 Steele Street, Steeledale, Johannesburg, South Africa 080 CALL JOY Australia China India Poland Russia South Africa South America United Kingdom United States

With coal suffering from negative environmental perceptions, sector hopes are heavily pinned on Clean Coal developments such as a current example from Britain. This is the new carbon capture and storage coal fired plant - Caledonia Clean Energy Project – to be based at the port of Grangemouth, west of Edinburgh designed to capture carbon emissions on more than 90 percent of its production capacity.

“The way coal is now mined is to be as clean as possible, with usage having the minimum environmental impact. Great strides have been made to ensure that.”

Meantime, Continental Coal is advancing at an impressive pace driven by a very strong management team most with large mine background. Now committed to moving Continental on to mid-tier status, their strategy is simple - growth, with an enabling operating cash flow and depth funding.

“We are a company with a deep profile of organic projects in South Africa, successful in supplying into both the domestic and export

markets and with the capability of developing projects, Penumbra being an example.

“From a management perspective we have a team in place to deliver on the operations side and in the project pipeline. We have a good handle on our costs and know how to manage our margins.

“Key strategic alliances and partnerships we have established, such as those with the very powerful EDF trading and a South African first with KORES, have been significant for Continental Coal. Every one of these deals comes with due diligence.

And when you get the green light it’s a vote of confidence. The fact that we’ve managed to secure debt funding for our third mining development is a further example of investor confidence.

“We are an experienced operator with the ability to grow the company organically and through M&A. We strive to deliver.

Continental Coal is heading to become a significant global mid-tier coal company.” END www.southafricamag.com 61

game IN ThE

South Africa Magazine talks to Jaco Beukes, Coo of SAIL, ThE commercial sports entity in South Africa.

By Susan Miller

62

www.southafricamag.com

J

aco Beukes, COO of SAIL, might not like using the term ‘one-stop-shop’ but that is what the multi-faceted sports marketing, consultancy and hospitality agency offers its clients – which include Cricket South Africa, Vodacom and ABSA among other big names.

A wholly owned subsidiary of MARC Group Ltd, SAIL Rights Commercialisation (Pty) Ltd, operates throughout South Africa and incorporates all aspects of sports commercialisation within its company. The Group has been operating for the past 13 years in the sport and entertainment field.

SAIL FEATURE

Recently nominated for four Virgin Active Sports Industry Awards, including Sports Agency of the Year, SAIL is focused on becoming “THE commercial sports entity in South Africa”.

Beukes says, “In the South African context we are definitely unique in the sense that most of our competitors have different companies for each of our service offerings.”

In the South African context we are definitely unique in the sense that most of our competitors have different companies for each of the service offerings

SAIL offer differentservice offering’s under one roof’, including hospitality, event creation and management; event infrastructure services, rights creation, representation and sales; ticketing, public relations, brand commercialisation; sponsorship and packaging rights, digital advertising, licensing and consulting to rights holders.

So, how does the holistic approach benefit clients? “As a corporate you can now deal with one person who can offer you hospitality linked to a sponsorship opportunity, linked to LED advertising who can implement that as well, this must be a huge benefit,” says Beukes. “On the other side of our value chain – we could be the rights holder or the stadium’s operator and in the same sense a corporate can deal with one party who can handle all their commercialisation needs – selling their sponsors, suites, doing their hospitality, as well as their stadium advertising.”

Part of SAIL’s growth strategy includes a sevenyear commercial agreement, which they recently signed with Stadium Management South Africa (SMSA) for the collective commercial rights of world-class Gauteng venues Soccer City, Orlando Stadium, Dobsonville Stadium and Rand Stadium.

SAIL has exclusivity for all commercial rights including suite sales, advertising, rights and sponsorship, event hospitality and all leases at the four stadiums. www.southafricamag.com 63

Delmont Caldow Caterers Delmont Caldow Caterers have been in the hospitality industry for over 30 years and our talented staff delivers a winning menu time and time again.

Notably in 2004, we collaborated with SAIL to host the Vodacom Year End Function at the Coca-Cola Dome, catering for 5000 guests. With our talent and their expertise in managing events of any scale and nature, we produced an event that grew over 6 successive years, finally catering to 6500 guests in 2009.

Other services such as ticketing, merchandising, LED screen rentals, PR and marketing will also be explored.

“How do we maximise the usage of the stadiums? Great question.

We are realistic in terms of the demand. Should there be a move away from sport but an increase in the demand for entertainment Soccer City offers a unique opportunity in the sense that it has a 98,000 stadium capacity.

Our responsibility is to make people aware of this and that it become the venue of choice for any substantial artist or promoter who wants to tour. From a sport point of view we are already in discussions with National Federations to bring their main events there and to establish a culture where Soccer City or FNB stadium becomes the National Stadium.

64

www.southafricamag.com

Soccer City offers a unique opportunity in the sense that it offers a 98,000stadium capacity

Our relationship with SAIL has grown over the years, and with the addition of Circa’s professional project management team, we have continued to creatively collaborate, delivering a well planned, perfectly executed, stylish and memorable occasion for their clients and guests.

For SAA’s Annual Awards evening, in December 2011 we were provided with an opportunity to show just how inspired this partnership is. Our service was impeccable, 400 waiters attended to the 4000 guests with ease as an on-site chef compliment of over 180 qualified personnel whipped, frothed and flambéd a magnificent plated menu.

We are humbled to be part of SAIL’s continued success.

SAIL FEATuRE

“No other stadium in South Africa can compare with its commercial value and capacity.

“Event creation is also one of our strategic offerings. We will take, as an example at our Vodacom Challenge there and increase the number of events at the stadia which increase our probability to sell our inventory.”

SAIL has already taken the holistic, commercial process forward at Loftus Versfeld Stadium in Pretoria. In its third year representing and working with the Blue Bulls, the company provides full commercialisation solution to the Bulls including sponsorships sales, hospitality, advertising and ticketing.

MARC Group, also owns 50 percent shareholding in the Bulls , so, Beukes says, it was an ‘easy integration’.

“Within the last two months we have gone one step further and introduced on online ticketing and CRM (customer relationship management) solution.

“It just adds more value, people might not see ticketing as a commercial opportunity but if you bring in a CRM model , you can really add value to the client but also to a potential sponsor,” says Beukes. “We can now give sponsors real, tangible benefits in the form of a value database and access to their target markets.”

Other big news for the company is a five-year partnership with the Sunshine Tour and the International Federations of PGA Tours to host new golf competition, in 2013, which is the Tournament of Hope.

This event will be broadcast to over 98 countries worldwide and promote awareness of HIV/AIDS in Africa. It is set to run from November 25 to December 1, which will coincide with World AIDS Day. www.southafricamag.com 65

Beukes believes that in terms of the event’s stature it’s going to be something that we haven’t seen in South Africa before.

“It is indeed part of the top five World events. My understanding is that the top 70 players in the world are indirectly secured for this event,” he says.

After providing hospitality for the 2010 World Cup in a joint venture, SAIL is undaunted by big challenges and will be taking on the dual roles of event manager and promoter for the Tournament of Hope.

“The promoter is in essence the party who takes on the Financial risk to the event. This will include securing all the revenues related 66

www.southafricamag.com

SAIL FEATURE

Sport is an ever-growing opportunity and SAIL are positioned uniquely in terms of our competitors

to the event. We will in addition take the risk for all the guarantees and players cost. The challenge lies in securing revenues for the event which is a combination of the ticket sales, the various levels of sponsorships, the advertising opportunities and the auxiliary events (which are associated with the tournament) which will include aspects like gala dinners, additional golf events and we are also exploring other sporting events.

The company is proud to be associated with promoting awareness of HIV/AIDS prevention at the event.

“We want to make sure that we get a tangible return on the charity aspect of it as well.

AIDS statistics have improved marginally over the last couple of years but HIV/AIDS is still a massive problem within the African continent,” Beukes says.

While it is cementing its South African successes, SAIL also has its eye on expanding into Africa, probably assisted by fellow MARC Group company EXP, which operates in “14 countries in Africa”.

With SAIL at the forefront of South African sport and entertainment, Beukes stresses the company’s commitment to innovation – whether it’s through LED board advertising or introducing a new ticketing system which both allows flexible pricing options and platform adjustments.

He’s confident about where the company is heading. “Sport is an ever-growing industry and SAIL is positioned extremely well in terms of our competitors.” END www.southafricamag.com 67

taste A q u esti o n o f

Feedem Pitseng is South Africa’s largest privately owned caterer, which prides itself on its innovative and client centred approach to business.

By Jane McCallion

68

www.southafricamag.com

Feedem Pitseng FEATURE

F

eedem Pitseng is largest independently owned contract catering company in South Africa and it continues to show consistent growth.

The firm has 2,200 employees - cooks, chefs, dieticians and hygiene experts - who are located across the country, operating canteens and providing meal services in a range of settings, from factories to educational institutions to hospitals.

What makes Feedem Pitseng different, Johannes Wessels CEO says, is that it was the first catering company to embrace the principles of black empowerment, which it did by entering into partnerships and profit-share schemes with employees and entrepreneurs.

It is also a company where all the shareholders have remained active members of the management team.

“The company was founded in 1975 by Jeremy Webb,” says Wessels. “For the first 12 years of operations, Feedem Pitseng was a delivered meal company, rather than an industrial catering company, taking cooked food to construction sites around Edenvale in Johannesburg. In 1987, Webb was joined by Andrew Constandakis, Mike Maree and William Bolton, who helped to steer Feedem Pitseng in the direction of industrial catering, where it really began to bloom.”

Wessels initially joined Feedem Pitseng in 2003 and

took his current role in 2010.

“Being privately owned is what sets Feedem Pitseng apart from the rest of its field. Being a self-funded enterprise allows us to focus on our customers: we do not exist merely to create shareholder value. At the same time, we’re fairly big, which allow us to afford the necessary infrastructure to support larger contracts.”

All the food served in Feedem Pitseng-run kitchens is prepared fresh on site, he says. “We buy from close to 200 suppliers around the country. These are all specialist wholesale companies that deliver the ingredients to our kitchens, from which our catering staff prepare the meals. However, we do sometimes use local suppliers, such as dairy farms, as well.”

Over recent years, there has also been a change in the demand for what customers in their meals. “The middle class of South Africa is expected to double by 2020, so there’s been a change in the eating patterns over the past few years as people become more health conscious. However it has also been found that South Africa has the fastest growing BMI in the world. Although there’s a big drive towards healthier food, more than 50 percent of South Africans are overweight, which is rather high compared to the rest of the world and is on the rise.”

Wessels says that while there’s a certain part of the

Being privately owned is what sets Feedem Pitseng apart from the rest of its field. Being a self-funded enterprise allows us to focus on our customers

www.southafricamag.com 69

South African population that is becoming more health conscious, a large proportion of the people who previously did not have the money to buy a lot of food are now able to buy takeaways and other unhealthy meals. “It is almost moving in two directions – one part of the population is eating more and getting fatter, the other part is becoming more health conscious. There’s a definite need for the ingredients and whatever is in the food to be displayed where people buy food. In most of our canteens we always give the healthier option and try to have programmes to drive healthier eating.”

One of the major challenges facing Feedem Pitseng are the redundancies caused by the economic downturn – not within Feedem itself, but at the organisations it provides catering for. “South Africa has lost about a million jobs since 2008 and most of our customers are employees of other companies, so our market has shrunk by almost one million people,” says Wessels. “The other challenge we have, and it’s our biggest challenge, is controlling costs when inflation is on the rise and fuel prices in particular are going through the roof. Add to that the fact that in certain areas of South Africa they’ve put in toll roads, which also adds to the cost of our product. So the challenge is to control costs and to recover the cost of higher prices from our customers, who are already decreasing and at the same time whose disposable income is down from what it was a few years ago.”

70

www.southafricamag.com

While these are major challenges, Wessels is not disheartened. “The South African economy seems to have turned and the employment figures are on the rise, so hopefully we will overcome that in the years to come.”

Feedem Pitseng is in a strong position and has a close relationship with its staff – a vital ingredient in business success. One example of this is the company’s corporate social responsibility (CSR) programme, whereby employees help to choose which organisations will benefit: “We have started a programme where we invite our staff to introduce to us social organisations that are in need that they are physically involved in. For example, if someone is working in a soup kitchen or at an orphanage and they can prove their involvement, we will allocate funds from our R140,000 CSR budget to help those organisations. In doing so we try to do two things; firstly, showing our commitment to the community, but also involving our staff and help build teamwork.

We also provide for our staff in more traditional ways, through employee training and payment towards medical aid, as well as having in place pension funds for all employees.”

Feedem Pitseng FEATURE

We use bacterial cleaning, which is harmless to the environment, rather than chemical cleaning

Feedem Pitseng’s immediate future goal is to double the size of the company in the next five years.

Remarkably, there are certain provinces of South Africa in which it has little or no representation. “Although we’re a national company, we’re not well presented in all geographical areas. The main two areas like this are Eastern Cape, which we have started to grow over the last two years – we weren’t there at all three years ago – and in the year to come we hope to move into Free State, including Bloemfontein, and Northern Cape, particularly Kimberly. After that we will probably move to areas like Mpumalanga and Limpopo.”

He says that, in the longer term, the firm will look at moving into the rest of Africa, where it is “currently not represented at all”.

To learn more www.feedempitseng.co.za. END

Feedem Pitseng has always had a great taste for success.

Feedem Pitseng’s fresh and progressive approach has helped them become South Africa’s largest independent catering company. FNB is proud of their growing achievement.

To speak to a Commercial Banker who specialises in your industry, email newbus@fnb.co.za or visit www.fnb.co.za

MetropolitanRepublic/8484/E

Commercial Banking

First National Bank – a division of FirstRand Bank Limited.

An Authorised Financial Services and Credit Provider (NCRCP20).

Wessels says it has taken an innovative approach to its environmental commitments too, with a focus on its cleaning and waste activities. However, rather than just working on the ‘reduction’ template that many businesses do, Feedem Pitseng has elected instead to make a real change.

“We use bacterial cleaning, which is harmless to the environment, rather than chemical cleaning. It’s far more natural than your normal cleaning products.”

While the idea of bacterial cleaning may sound slightly alarming in a catering context, the microorganisms and enzymes used in this type of product are harmless to humans. Indeed, this type of cleaning is so effective and so environmentally neutral that it was used to help clean up after the Deep Sea Horizon oil spill.

“Some waste is inevitable in catering, however,” Wessels says. “We have chosen to repurpose leftovers and peelings, rather than put them in landfill, and all the food that is not used is recycled as fertiliser.”

Foton Daimler – more thAn a merger between two global automotive giants for Foton Trucks SA

Foton Motor Company, China’s leading producer of commercial vehicles, entered the South African market in 2011. Foton Trucks SA CEO, Ismail Asmal, talks to South Africa Magazine.

By Ian Armitage 72

www.southafricamag.com

O

n February 18, 2012 two global automotive giants Foton and Daimler merged, establishing the Foton Daimler Automotive Co., Ltd. This says prominent businessman, Ismail Asmal, was the start of an exciting new chapter.

Asmal has a wealth of experience in the mini bus and parts industries. About

Foton Motor Company FEATURE

two years ago he decided it was time for a new challenge - and so, together with a few private investors, brought Foton Trucks to South Africa.

“Globally and locally the alliance between the giants is a milestone for the Automotive Industry.” he says. “For Foton Trucks SA, the impact the merger will have on the Foton Trucks brand is huge – you can’t buy the credibility that Daimler brings you, this is the result of nine years of hard work.”

Foton Trucks SA launched in June 2011.

“Foton is a global commercial vehicle sales champion, and Daimler is a world-class commercial vehicle enterprise,” says Asmal.

“The medium and heavy-duty truck joint venture built by two outstanding companies pools the high-quality genes of both and lays a solid foundation for the future.”

Locally, the Foton Daimler merger will strengthen and add support to the already positive image that is being built by Foton Trucks South Africa having only entered the SA market in 2011.

“By working together with Daimler, Foton takes another step forward in the business of globalisation, which allows us to be more aggressive locally as far as pricing and affordability are concerned,” Asmal says.

Foton Trucks SA has secured the rights to distribute Foton Commercial vehicles above 1,500 kg in Southern Africa.

The medium and heavyduty truck joint venture built by two outstanding companies pools the high-quality genes of both and lays a solid foundation for the future

Foton Trucks SA is a subsidiary of AICC Automotive Imports and began the homologation process during the latter part of 2010.

“The company was started in China in 1996. It has grown to become the world’s largest manufacturer of commercial vehicles in terms of sales since 2009,” says Asmal. “The South Africa operations sold and delivered 82 vehicles between June and December 2011 and we are very pleased with that.

The response to us from the market is good. People are happy with the product.

“In terms of our positioning, I think we are a good match to the big trucking companies and we have a focus on excellent aftersales. We are also targeting Zimbabwe and Botswana as well as Mozambique and Namibia.

We will concentrate on these countries – our neighbours. We www.southafricamag.com 73

want to be near them in terms of stock supply as well as the very necessary back-up. However, we are selling product further a field in Africa also.”

Foton entered the South African market with a range of trucks initially covering the 1,5-ton to eight-ton payload sector. Eventually this will include heavy to extra heavy trucks and buses as well, Asmal says.

Foton Trucks SA’s sourcing opportunities are literally endless, he explains, as Foton is one of China’s largest commercial vehicle manufacturers with an extensive range of quality commercial vehicles.

“Our extra heavies are here, they have been homologated, and they will be introduced to the market this

By working together with Daimler, Foton takes another step forward in the business of globalisation

year,” Asmal says.

Despite being less than a year old, Foton has high hopes for the future.

“In our first two years we want to get five percent market share. Then we want to build on that. In five years we’d like to be at about 30 percent market share, which is an ambitious target, but one that I believe is achievable.” An extra heavy 6x4 tipper truck will be launched in soon.

“These are exciting times,” Asmal says. “By 2020, Foton China is aiming to become one of the top 10 automobile

Foton Motor Company FEATuRE

manufacturers in the world.�

Foton Motor Company has built production and assembly (CKD) plants in Indonesia, Vietnam, Russia, Mexico, Pakistan, Turkey, Iran and other countries. It has also established sales and service networks in Central Asia, Western Asia, South-East Asia, Southern Asia, Africa and Eastern Europe, covering more than 100 countries.

Foton Trucks SA operates from headquarters that are easily visible from the R24 highway, near OR Tambo International Airport, in a facility that includes a warehouse, workshop and parts distribution centre. END

Quarter page advert 82.5mm(W) x 117.5mm(H) To learn more visit www.fotontrucks.co.za.

Diesel Engines For Every™ Application Tel:

Cummins South Africa (Pty) Ltd Tel: +27 11 421 9906 Fax: +27 11 422 4319 www.cummins.com/southafrica

Quality

performance AND

PERSoNIFIED

The Grid Group is one of our country’s leading property developers.

By Ian Armitage

76

www.southafricamag.com

T

he Grid Group, one of South Africa’s leading property developers and building contractors, has a number of high profile clients, amongst them Massmart. “That project is a big warehouse building in Riverhorse Valley,” says The Grid Group’s Russell Winship, who recently talked with a South Africa Magazine researcher. “It is a massive structure that is easily noticed,” he says.

Some of the construction statistics for that project are staggering, with as much

as six rugby fields cast in concrete for parking alone.

But it is just one of a whole bunch of projects Grid Group has worked on and completed.

“We’ve been involved with some leading construction projects, such as the Grideye office park in KwaZulu-Natal, the Porsche Umhlanga Building, and The Aspect and The Cube mixed-use developments at Umhlanga Ridge,” explains Winship.

And the awards have flooded in. Grid Group won a Master Builders Association Excellence in Construction Award for its work on the www.southafricamag.com 77

Porsche Umhlanga Building. That shouldn’t be a surprise, Winship says. The company has quite the “pedegree”, having been formed in 1967 and been owned and led by Bruce Winship and his family for the past 24 years.

“Blending contemporary architecture and practicality, Porsche Umhlanga has burst out the red dust at speeds of zero to 100 in record breaking time, arriving first on the block the new housing for this glamorous vehicle has already got heads turning and people talking,” Grid Group’s website says, talking about the flagship project, proudly proclaiming that the “challenge to construct a high-class eyepiece was met with enthusiasm and confidence by the Grid team who are proud to be part and parcel of the high performance products both companies are accustomed to delivering.”

It is one of best examples of green building in South Africa.

“We brought some professionals over from America to assist us in developing the building and park,” Winship says.

It is designed to be energyefficient and to have low emissions.

“We firmly believe that green building helps with social upliftment, as well as being financially efficient,” Grid Group says.

Grid Group is primarily focused in Durban and the KwaZulu-Natal region. The company employs around 250 people, covering the whole range of activities associated with construction. Its revenues are in the region of R500 million.

“We already have R400 million booked in for this year,” says 78

www.southafricamag.com

Winship. “We have been in the market for 45 years and are a stable, dependable company, with a strong portfolio of completed work.

“We strive for the most economical prices,” he continues - a strategy, which coupled with an unwavering reliability and dedication to quality buildings, has made Grid Group “one of the most highly respected” building construction companies in the property development business. “We have several businesses within the group, covering a whole range of construction.”

The companies within Grid Group are Grid Developments, Grid Construction and Grid Rentals. It’s clear that what began as a construction business now offers project management, small works, residential homes, rentals and commercial and office space: “While our years of experience and expertise as building contractors mean we can tackle even

Grid Group FEATURE

the largest contracts with complete confidence, we are also equally adept at handling the smallest jobs,” the company’s website says. “No matter how big or small the project, our customers are rest assured that it will be completed on time, within their budget and to the satisfaction of even the most exacting clients,” added Bruce Winship, CEO. “We have made it our highest priority to produce the best products at competitive prices.

I believe one must have a humble attitude, but be dogmatic in a selfbelief that all goals will be achieved.

Of prime importance to The Grid Group is maintaining the focus of quality and efficiency, while building strong effective relationships at all levels.”

This approach will see Grid Group well in the future, especially in what is a tough trading environment. So too will the fact that it has learned over the last few years to be highly innovative.

“Throughout the South African property development and construction sectors, developers are now cutting their prices to stay afloat,” an industry insider told South Africa Magazine. “Many of the professionals serving the construction sector, some of whom four or five years ago had more work than they could really cope with, are now struggling and facing an uncertain future.”

Will President Jacob Zuma’s pledge to ‘industrialise SA’ help? Only time will tell.

Something does need to change. END To learn more visit www.grid.co.za.

King road oF ThE

South Africa Magazine profiles Roadhog Trailers, established in 2002.

By Ian Armitage

E

stablished in 2002, Roadhog Trailers has, in the words of director Gordon Moyle, “grown steadily and speedily through hard work and dedication”.

Looking at its trailers, it is easy to see why the business has grown. Its trailers are distinctive. They’re strong.

They are desirable. But who is to thank? Moyle, who recently spoke with a South Africa Magazine researcher, says Roadhog owes its success to its 80

www.southafricamag.com

dedicated staff, “loyal customers, and its many efficient suppliers”.

Things, he added, started small – a business run by its owner and current MD Gary Reddan, a mechanical engineer.

Reddan is still in charge. But it isn’t small anymore, producing around 70 trailers per month.

“The thing about our trailers is that they really do speak for themselves,” says Moyle. “The best advert for our products is that our trailers outperform

Roadhog Trailers FEATuRE

in terms of reliability, strength and quality.”

The result is that Roadhog is one of the fastest growing trailer manufacturers in the country. The firm’s website takes up the story, “In order to accommodate a growing client base and the phenomenal demand for these exceptional trailers, new premises have been built in the Northdene

The thing about our trailers is that they really do speak for themselves

industrial area. Customers are offered a professional aftersales service centre for the servicing and repair of trailers. Roadhog Trailers is set on embracing all the opportunities and challenges it will encounter.

Its objective is to grow the operation into a truly national company, providing trailers to the transport industry that will ‘carry the load into the future’.” www.southafricamag.com 81

Roadhog’s vision is to “be the leader” in its industry by “exceeding the expectations of our customers, employees and suppliers”, while it’s mission statement is to “provide topquality heavy-duty trailers that will meet customers’ precise requirements” and to be the “preferred supplier in our industry by delivering exceptional value to our customers and setting the standard for quantity innovation and leadership”.

It is doing that. “We take pride in the quality of the trailers and trailer components we produce,” Moyle explains.

“That is probably the thing that distinguishes us the most. You can tell the quality. Customers know when they buy a Roadhog that they are assured of the best quality and finish available.”

We strive to do better than our competition by making quality trailers that are strong, lightweight and that have been tested thoroughly

82

www.southafricamag.com

Roadhog Trailers FEATuRE

Roadhog Trailers has what Moyle described as a “Three-Phase Quality Assurance Process” to ensure quality – it is a step-by-step process, from which quality is built into the trailer.

“It is a way of ensure all trailers are of the highest possible quality,” he says.

Like most manufacturers, the global financial crisis and subsequent slowdown in global markets has subdued business.

Roadhog was making around 100 trailers a month before the crash. It is at 70 now. That is still a remarkable figure, Moyle says.

“At the height of the recession this figure dropped to almost what it had been when the company first began trading. It was very low. But we have rebounded and since then business has improved, and while we don’t employ as many people as we once did, we are making an impressive amount of trailers a month. If the current trend continues, we will catch up with our pre-recession success soon and be back at or even above the 100 mark.”

One challenge for Roadhog -- and this is one that all South African businesses have to overcome -- is a shortage of skilled labour. Regretably, says Moyle, this has had an effect on what Roadhog is able to do, and how it would like to grow.

“There is a shortage of skilled labour. Fortunately, most of our production staff – fitters, welders, and boilermakers – are in separated into divisions this saves on training, but means that new designs may require

more supervisors attending to the production staff to ensure quality,” he says. “Quality, I must stress, is everything. We strive to do better than our competition by making quality trailers that are strong, lightweight and that have been tested thoroughly.”

Roadhog’s trailers aren’t just your typical, off-therack trailer - often they are made to specific customer requirements. “We are able to offer a bespoke service,” Moyle says. “We are eager to continue growing the business and have strategies in place to achieve that,” he adds. “To this end, we have been designing new trailers and monitoring the competition to stay a step ahead. Any new trailer, as with any Roadhog, will be strong specialised trailers made from the latest materials.” END To learn more visit www.roadhogtt.co.za.

The value for money paint Distributed by Super Auto Paints Head Office: 247 Aberdare Drive , Phoenix Industrial Park Tel: 031-5077781 Fax: 031-5002867 Email: phoenix@superautopaints.co.za Springfield Park: 1 Peters Road, Springfield Industrial Park Tel: 031-5777323 Fax: 031-5777322 Email: springfield@superautopaints.co.za Pinetown: 117D Old Main Road, Pinetown Tel: 031-7015449 Email: pinetown@superautopaints.co.za

PRINT

The

KINGS

84

www.southafricamag.com

Minuteman Press FEATuRE

M

one of the foremost and most prestigious printing franchise organisations in the world, Minuteman Press fulfils the graphic needs of almost every type of business.

By Ian Armitage

inuteman Press is the largest and most prestigious printing franchise in the world. It has been rated the top printing franchise in the printing industry over 20 times

by Entrepreneur Magazine and was founded in 1974.

Today, it occupies a unique position in the printing industry.

“The business was established in the USA in 1974 and has been franchising since 1975 and today has thousands of units worldwide, including South Africa, where the first Minuteman Press outlet opened in 1996,” says the man who heads up Minuteman Press in South Africa, regional vice president Frik van Niekerk.

Van Niekerk started his career in the printing industry with AM International, who supplied Minuteman Press International.

“That’s where my involvement started,” he explains. “In 1998 I was employed by Minuteman Press International to provide back-up and support to its South African operation and it was in 2009 that I assumed responsibility for the South African region when Adele Schalit, who introduced the Minuteman Press concept to the South African market, retired.

“I’m very much enjoying the challenge,” van Niekerk adds.

“There is a lot of growth still to come in South Africa and we have ambitious plans to grow the business. My goal is

The business was established in the uSA in 1974 and has been franchising since 1975 and today has thousands of units worldwide Frik van Niekerk

www.southafricamag.com 85

strengthen and grow our existing outlets, while adding between three and four new ones a year.

The business is currently focused on the Western Cape, Free State Province and KwaZulu-Natal.”

Minuteman Press is a franchise organisation that specialises in printing services, copying and document reproduction and graphic design services.

By combining the quality of a commercial printer with the ease and speed of an instant printer, it has carved a unique niche within the printing industry. Its outlets offer an extensive range of products and services, van Niekerk says. “We do everything including digital printing, binding, colour copying, design, embossing, foil

86

www.southafricamag.com

stamping, full colour printing, logo design and saddle stitching. The product range includes envelopes, flyers, invitations, labels, manuals, menus, price lists and presentation folders – we do it all.

“Now, we are not the cheapest in the market place, but we offer an unrivalled quality. All businesses use print and our franchises are capable of fulfilling the total graphic needs of almost every type of business.”

The formula works, van Niekerk says. “This year has been good for us, just like the years before were good for us. Since Minuteman Press started in the South African market it has grown every single year. In 2009 we enjoyed over five percent growth and in 2010 we had close to seven percent growth. We eclipsed that in 2011 with over 12 percent growth.

“We, as a franchise, are always growing in terms of numbers and it has, especially in the recessionary times, a lot to do with our ability to develop innovative strategies to be a step ahead of the recession and competition. In a tough time, you can either strategise, and come up with means and ways of adding value for clients, or you can cut back, go for that cheapest price.

We opted to add value. It is just a case of in the difficult times, being sharper, and working smarter. What we have found over the years is that the minute the economy goes tight, print is the quickest and easiest means of advertising to get your business boosted.

Minuteman Press FEATuRE

That is what we do. We are a business-to-business marketing organisation.

“At the end of the day there are some business people for whom everything is about price,” he adds. “Then there are those for whom the focus is on a quality product, delivered on time and at a reasonable price. We strive for that.

“Every business needs printing on a daily basis no matter which way the economy turns.”

The ideal franchisee, van Niekerk says, is one that is “hard-working and ambitious”.

Experience in the industry is not necessary.

“In terms of the franchisee, we offer a lot of support. For instance, we will assess the suitability of potential locations; those assessments take into account the population, surrounding businesses and business centres. We also help to ensure the optimisation of shop space, and layouts are designed based on the unique floor plan of each store.”

In a typical Minuteman Press outlet a press operator, a counter and graphics employee will support the franchisee.

“Like I said, we offer a lot of support. The regional Minuteman Press head office provides preopening, as well as post-opening assistance and support. This includes technical and marketing support as well as assistance with the interviewing, testing, hiring and training of personnel.

“The franchisees also attend a two-week training course in the USA, at the corporate headquarters training facility in Farmingdale.

There they are taught the technical

and business skills necessary to effectively manage a Minuteman Press franchise. If deemed necessary, Minuteman Press will conduct on-site training for franchise employees.

“The ideal Minuteman Press franchisee should be outgoing, hardworking and highly motivated with a high regard for service excellence and the ability to follow systems. It is important they strict to the winning Minuteman Press formula.”

When asked what the plans were going forward, van Niekerk simply said Minuteman Press wanted to remain a leading brand in South Africa within the industry. “We want to constantly work on the relationships that we have taken the time to build up,” he says. “But, yes, we are looking to expand. We are currently looking at KZN and the Western Cape. I’m in negotiations now with three new potential franchisees for the Western Cape.”

Minuteman Press International has created a “blueprint for success”, he concludes. END To learn more visit www.minutemanpress.co.za.

crest wave oN ThE

oF A

88

www.southafricamag.com

Stefanutti Stocks Marine FEATuRE

S

Stefanutti Stocks Marine is a significant player in the marine civil engineering market in South Africa and Africa.

By Ian Armitage

tefanutti Stocks Marine (formerly Civil & Coastal Construction) needs little introduction. It is a significant player in the marine civil engineering market in Africa and is a division of the Johannesburg-listed Stefanutti Stocks Group.

“Being part of the group has enabled us to take a big step forward,” says Simon Allen, managing director at Cape Town-based Stefanutti Stocks Marine, who recently talked to South Africa Magazine.

“The original business, Civil & Coastal Construction, had reached a point where the projects it had were too big for a two-man business to take on. We needed a big brother.

Someone to help with our methodology, systems and technical and commercial infrastructure.”

It was Stefanutti Stocks that took up the offer. It was the perfect match, says Allen, and the marriage has led to major changes that he feels “needed to happen”.

When he joined Civil & Coastal Construction in 1994, it was a company that looked upon an R50,000 project as “significant work”. Today, as Stefanutti Stocks Marine, it operates on projects over R1 billion.

“We are a one-stop design and civil engineering construction contractor and have delivered successful solutions not just here in South Africa but also across the continent.” www.southafricamag.com 89

Stefanutti Stocks Marine FEATuRE

The firm has worked on a number of blockbuster projects in South Africa and Africa, one of its biggest to date being in Cape Town’s Table Bay Harbour, widening and deepening the Ben Schoeman dock.

“That project is worth R1.25 billion,” Allen says.

Stefanutti also worked on the reconfiguration of Quays 1, 2 and 3 in Walvis Bay Harbour, Namibia, and it is currently doing a lot of work in the Port of Durban, the largest container terminal in the Southern Hemisphere.

Transnet National Ports Authority, which is responsible for managing and governing Port of Durban, has at any one time between 40 and 60 projects worth billions of rand underway at the port and in this fiscal year alone R770 million is being spent on infrastructural development projects.

“Stefanutti Stocks Marine has captured three contracts in the port of Durban, all for the reconstruction of existing berths using a combination of sheet piles, tubular and king piles installed by ICE and PTC vibrators,” says Jolanda Burggraaf, Snr Site Engineer.

“The harbour handles the greatest volume of all the ports in southern Africa, a total of around 5,000 ships which is about 40 percent of the ships calling at all South African ports. Our reconstruction will increase the capacity of these berths by stabilising the existing quay structure and increasing the berths’ widths towards the water.”

90

www.southafricamag.com

OVERALL SCOPE OF STEFANUTTI’S WORKS AT PORT OF DURBAN ISLAND VIEW BERTH 2 Supply and install 65 tubular steel piles, reinforced concrete filled, 10% raked at 1:4 Supply and install 60m sheet piles Rock fill Dredge 8,000m3 Supply and install scour protection

ISLAND VIEW BERTH 5 Supply and install 32 tubular steel piles, reinforced concrete filled, all vertical Install 230m sheet piles (sheets free issue from client) Rock fill Dredge 10,000m3 Supply and install scour protection Construct 18m span reinforced concrete deck superstructure including fire protection, stormwater and catchment chambers plus supply and install quay furniture

MAYDON WHARF BERTH 12 Supply and install 267m sheet piles with anchor wall and tie rods Demolish existing quay and reconstruct layerwork and paving Rock fill Dredge 20,000m3 Construct reinforced concrete cope beam, deck and quay furniture

The contracts concern Island View Berth 2, Island View Berth 5 and Maydon Wharf Berth 12.

Work at Island View Berth 5 and Maydon Wharf Berth 12 is underway.

The work at Island View Berth 2 is 95 percent completed, says Burggraaf.

“The challenge has been that while the work has been happening, the port has been operating at capacity, 24-hours-a-day, 365-days-a-year,” Burggraaf says.

“Work at Island View Berth 5 and Maydon Wharf Berth 12 is slower. The start of piling works for both these two contracts was dependent on the availability and delivery of barges on which large cranes are loaded to work off the water, as well as the piles themselves, all being supplied from Europe. In the interim the Maydon Wharf Berth 12 and IV Berth 5 teams worked on submitting method statements and risk assessments in preparation for the main works. Both contracts are now well underway.”

Stefanutti Stocks moved on site on berth 12 in July and the entire project involving berths 12-14 and 1-4 will be complete by July 2016.

The area between Maydon Wharf berths 9 and 13 is likely to become a new stand-alone container terminal once the berth deepening is complete.

“It is a very big project,” Burggraaf says.

Stefanutti Stocks Marine’s many projects have come to fruition because of its determination. Allen says that is borne of a desire to be the best. “We want to be the best marine civil engineering contractor in Africa. There aren’t many specialist marine contractors in this market. Our objective is to be the preferred one-stop shop marine civil engineering contractor in Africa.

“We strive for technically challenging projects and carry out both design and construction work.”

To learn more about Stefanutti Stocks Marine visit www.stefanuttistocks.com. END www.southafricamag.com 91

best bite ThE

IN ToWN

In the franchise outlet global League sandwich chain Subway has now overtaken MacDonald’s incredible but true. And 2012 will see a projected store increase in South Africa of almost double its current count, and expansion into other African countries accelerated, says Debbie Martins, Area Development Manager Subway Sub Saharan and Southern Africa.

By Colin Chinery 92

www.southafricamag.com

W

hile many South Africans are increasingly cash rich they are also finding themselves time short. And with more and more women entering the work place and a breakdown of the nuclear family, South Africans are finding it harder to find time to prepare meals at home. Unsurprisingly the fast-food restaurant option is booming.

In the feisty world of franchising nothing beats a good old-fashioned fast food outlet. It’s not happenchance that in the world top ten franchises, seven are fast food brands, and within this broad sector sandwich franchises are growing into a franchise genre all of their own.

Last year the US-based Subway overtook burger supremo MacDonald’s

Subway Africa FEATuRE

as the franchise with the most number of outlets worldwide – 33,749 sites in 95 countries compared with 32,737 for McDonald’s at the time.

In recent years Subway has made a major push into international markets with its successful franchised business model emphasising small, low-cost outlets.

Subway came to South Africa 16 years ago in 1996 and now has 17 franchise stores here with another 30 projected for this year. There are 12 outlets across Tanzania and Zambia.

“Although we’ve been here 16 years up till now there has not been a strong focus on building stores,” says Randburg-based Debbie Martins, Area Development Manager Subway Sub Saharan and Southern Africa. “But this year we have implemented a national marketing campaign. Our focus is to Build Sales, Build Profits, and Build Stores. We are very excited about the prospects of continuing to build the Subway brand in South

Africa and we feel the market is right for Subway and the introduction of our growth strategy.”

From Argentina to Zambia, the Subway core menu - with cultural and religious variations – remains essentially the same along with a strong emphasis on freshness and customer involvement.

As part of its new South African push, campaigns are rolling out every eight weeks, with an introduction of turkey meat as the current promotion.

While turkey meat is available in South African delicatessens and the cold cut sections of major stores, very few brands in the Quick Service Restaurant sector offer turkey. “Turkey meat is nowhere close to being as popular as it is in Britain and the USA. But it’s a healthier option, a very tasty meat, www.southafricamag.com 93

and we are excited about how the consumer will adapt to it.”

A Subway menu highlights a selection of sandwiches low in fat and under 350 calories and the brand has a reputation for offering customers a better alternative to traditional greasy and fatty fast food. “We are not by any means indicating we are a health shop, but we do give healthier options, and ‘Eat Fresh’ is very much a focus for us.”

What makes a Subway sandwich a unique experience?

“It’s made freshly before your eyes, just the way you like it; the sandwich making process is very user friendly, and the customer becomes part of the experience.

“We have 16 standard sandwiches as well as options specific to a country or particular market. In South Africa for instance its chicken mayonnaise, in Tanzania an offering based around vegetarian feta cheese in tikka spice. As a customer you make the decisions on a sandwich all the way down the line. You might pick cheese from the menu and then decide on the kind of cheese, which bread from five different types – in our stores we bake every four hours - types of vegetables and all the way down to the sauces and extras that go with it. And of course we have vegetarian options and variations.

“At many places elsewhere the sandwiches are pre-made and I have to have what is offered to me.

But as a Subway consumer I’m very much in control of what I am having in my sandwich. Walk by a Subway store and you can smell 94

www.southafricamag.com

the fresh bread and the fresh cookies – very enticing!”

The perception that sandwich franchises are healthier than burger franchises is one reason for the rapid expansion of Subway. Lower start-up costs, minimal equipment and space requirements and the no cooking factor are other appealing reasons for the prospective franchisee.

Recruiting the right franchisee, one that fits the ethos of the brand is obviously key, says Martins. So too is a sound business aptitude and a sound business plan. “It’s all about team work, being an entrepreneur.

Like any franchise Subway has systems and controls in place.

“Motivation is central to success, and initially you need to be hands-on. It’s not that simple to make a good return on you’re business when you are not involved.”

The quality of training is crucial, and for South African franchisees this is undergone in a number of training centres across the world, South African’s franchisees generally go to either Dubai or India. Staff training includes Subway’s own on-line university as well as hands-on instruction. “The way you get to make the perfect sandwich is through practice.”

Securing the right site selection is another imperative aspect of a successful Subway store; Subway undertakes extensive research into issues such as viability, visibility, accessibility and demographics.

Identifying the major traffic patterns, the availability of parking, the cost of utilities, the rent per square foot are other factors to consider when locating a site.

Subway Africa FEATuRE

It can take eight to 10 weeks from the signing of the franchise agreement to the opening of a store, and then a further three months – during which teething issues are identified and resolved – before the official Grand Opening.

Franchisee investment input is between R750,000 to R1 million, depending on store size, with those in shopping malls and food courts among the smaller. Stores vary in size between 35-60 Square metres.

“The main challenge is making sure we have the right people on board.”

Subway’s suppliers are selected by price and reputation, and with a strong and growing focus on local producers. Contracts are reviewed every six months and in line with its growth plans. “We’ve got a really good group of suppliers on board, who understand our growth strategy, where we are going, and who want to grow with us.”

In Tanzania and Zambia where KFC, Debonairs Pizza, and Steers are established – the

growth is impressive and accelerating, and Martins is encouraged by the potential. “We are doing very well, absorbed into the market and consumers seem to seriously love Subway.

“The big thing about Subway is that we are worldwide and Number One QSR in terms of volume (in number of stores). There are always challenges when you go into an emerging market, but all have been faced across the globe and we have reference to the experiences of a very large network. We don’t have to re-invent the wheel.

“From the consumer’s point of view, having a Subway sandwich as a meal is healthier, and fun to make and eat. From the perspective of the franchisee there are exciting opportunities here in South Africa and elsewhere in Africa where we are positioned. We see our brand growing in leaps and bounds in the next couple of years - so keep your eyes open and see what’s happening in Subway Africa!” END

for all

A better life

Lefa Motlalane acting general manager of Lesotho Energy Company, the sole electricity provider in Lesotho, talks to South Africa Magazine.

By Ian Armitage

96

www.southafricamag.com

Lesotho Energy Company FEATuRE

L

esotho Electricity Corporation (LEC) generates, transmits, and distributes electricity. It owns and operates hydro power stations and was founded in 1969.

“We are headquartered in our capital, Maseru,” says Lefa Motlalane, acting general manager, who has worked for the firm since 2003.

Motlalane took over the reins, albeit on a temporary basis, following the resignation of the previous general manager. He would like the job full time, having been “chosen because of his experience”.

“We are the sole electricity provider in Lesotho,” Motlalane explains. “We take everything from large industrial customers to customers in small, rural areas.

“Our goal is to generate, transmit, distribute and supply electricity to everybody across the country at competitive and affordable prices.

We generate, supply and distribute electricity throughout the Kingdom and are now moving into rural areas, which have never been serviced before. Before LEC, the government provided electricity and they used a very small coal generating plant, which generated a small amount of energy. We now have a bigger, cleaner energy portfolio and provide electricity throughout the country at a very good rate.”

Motlalane says that around 70 percent of what LEC distributes in the country is generated locally, while 30 percent is imported from neighbours South Africa and Mozambique.

Eventually all of Lesotho’s power will be generated locally, with any surplus sold abroad.

“What sort of energy do we have? In Lesotho we only have renewable. We only have hydro,” Motlalane explains. “Lesotho has huge hydro potential and we have hydro power stations. The highlands water project is Lesotho’s flagship hydro project and it is something we were heavily involved in. It is in the second phase now and we will be instrumental in making sure electricity gets to this project.”

Under the water project, created in partnership with South Africa, Lesotho exports water to South Africa’s Gauteng province through a series of

We are the sole electricity provider in Lesotho. We take everything from large industrial customers to customers in small, rural areas

dams and tunnels blasted through the mountains. Gauteng has little water of its own and needs Lesotho to quench its thirst. As a double benefit, the multibillion-dollar project also generates enough hydroelectric power to meet about 90 percent of Lesotho’s energy needs.

Water literally is Lesotho’s “white gold”.

“It is a project where South Africa buys water that in turn generates enough electricity to meet Lesotho’s needs,” Motlalane says. “We are endowed with huge water resources for power generation.”

Lesotho is a tiny landlocked mountain kingdom. It is just over 30,000 km in size with a population of approximately two million.

Motlalane says the firm has an important role in helping the Kingdom to grow and flourish. About 40 percent of the population live below the international poverty line of US$1.25 a day. www.southafricamag.com 97

“Energy is vital to our country and our country’s growth. LEC plays a huge part in the success. There is lots of potential for Lesotho to grow and we want to power it.

“Access to electricity aids economic productivity and improves people’s quality of life. Without power, clinics cannot deliver babies safely at night, children cannot study longer, businesses close at sunset and vaccines cannot be reliably refrigerated.”

LEC has been doing much to expand access for the poor. “We have been rolling out electricity into rural areas,” Motlalane says. “It is important to us. We are committed to reaching our millennium tariff goals.

“At the moment we are still left with six percent of households to connect.”

On September 2000, 191 countries adopted a resolution at the United Nations General Assembly called the Millennium Declaration. From this, a number of Millennium Development Goals, or MDGs, were developed.

“The main purpose is a vision for the future, a world with less poverty, better health and education, and equal opportunities for all,” says Motlalane.

The MDGs are an integrated set of eight goals and 18 time-bound targets to be reached by 2015.

Energy is not a goal as such but its input is crucial to reaching most of the millennium development goals.

“Electricity is needed to power small industry and enterprise, run health clinics and light schools.

Without it, rural poverty will not be eradicated,” Motlalane says. “We 98

www.southafricamag.com

Lesotho Energy Company FEATURE

are pleased with the progress we have made.

I think we have made a lot of it. When you come into the country now you see most rural areas have electricity.”

LEC, he continued, is currently conducting a prefeasibility study that will see a further plant added to its energy portfolio. “We are in the process of building a new plant with a French company. We are doing a prefeasibility study. It will be 1000MW of pump storage at Monontsa in the North of the country.

“What are the goals? Well what will happen here is that because Lesotho’s demand is less than 1000MW, more or less, we will take 200 MW from there and the rest will be exported to South Africa. Eskom has shown interest in taking that.

“To summarise, a pre-feasibility study is under way for the construction of a 1000MW pumped-hydro energy storage project.”

Motlalane thinks it will be operational by 2018 and with thoughts to the future, he says a lot will happen in 2012.

“We are now a fully fledged utility. We will go through changes in 2012. In 2001 an interim management task force was brought in to turn around LEC because then it was making financial losses. These guys came in and turned things around and restructured the company. So, immediately after it surfaced from the losses it was making, we realised the structure was more rigid and didn’t support the business in the way we wanted. This is why now we need to restructure to get the right structure that makes sure we deliver on what we need, aligning processes better to the business.

“This is an exciting time to be part of LEC.” END To learn more visit www.lec.co.ls.

Number 12, Lakeside Hotel Office Block, Lakeside Hotel Maseru, 100, Kingdom Of Lesotho

Telephone: +266 22 32 3030

P. O. Box 9266 Maseru, 100, Kingdom Of Lesotho

E-mail: likoankoetlaconstruction@gmail.com

Likoankoetla is a privately-owned business that was established in 2008 with the vision of construction development in mind. We specialise in unique, culturally-motivated buildings and other built structures. Likoankoetla has been involved in several government-funded projects which involved building construction and renovations.

Fax: +266 22 32 4520

Our products and services include: Building Construction, Plant and Transport Hire,Road Construction and Rehabilitation and Renovation Works

clean

sheet A

100 www.southafricamag.com

Kadoma Paper Mills FEATURE

As the only paper mill in Zimbabwe for tissue and fine paper, Kadoma Paper Mills is in an advantageous position. However, as general Manager Prosper Chijokwe explains, it still has challenges and ever increasing and changing demands to meet.

By Jane McCallion

F

ounded in 1980 by ART Corporation, Kadoma Paper Mills is the only producer of tissue and fine paper in Zimbabwe. The company is headquartered in Kadoma, approximately 140km south west of the capital Harare.

The majority of the tissue paper produced by Kadoma Paper Mills – some 85 percent – is manufactured using recycled waste paper, which is primarily sourced from Zimbabwe. Until two years ago, this figure was 100 percent, as General Manager Prosper Chijokwe explains. “We started using virgin pulp to produce

People prefer pureness and a certain segment of the market would prefer the whiter, softer, virgin paper

www.southafricamag.com 101

Kadoma Paper Mills FEATuRE

about 15 percent of our products in 2009. The reason for this is the market here is changing: People prefer pureness and a certain segment of the market would prefer the whiter, softer, virgin paper. So we decided to diversify away from 100 percent recycled in line with what was happening in the market.�

This move to the production of more expensive, virgin tissue paper is a mirror to the reason the company manufactured recycled paper for the first 30 years of its life. When the factory was initially commissioned, the 102 www.southafricamag.com

We are currently doing feasibility studies into doubling our production capacity from 15 tonnes to 30 tonnes per day

machine that was purchased could only produce recycled tissue.

At the time, due to low household income in the country, this was the ideal solution, as the vast majority of the population could not have afforded to buy virgin paper.

However, with a growing middle class, the market for virgin paper has opened up.

In terms of both supply and distribution, Kadoma Paper Mills’ production chain is highly integrated: Both its primary supplier and customer are sister companies within the ART group. “Our

Softex Tissue Products is jointly owned by ART and Hunyani Holdings, and was started in 1983 with state of the art equipment, and has perfected the art of paper converting and selling tissue rolls and related paper products. The company, with a staff complement of about 130, has also diversified into feminine (sanitary wear) and baby products. Softex has recently expanded into hygiene products.

Tissue Products Softex Supersaver Nurse Tissue Wish Luxury Pack Wish Facial Tissue Springsoft Snip Springsoft Sable Softies

Rainbow Caterpack Serviettes

Softex Femcare is a division within Softex Tissue Products, birthed under a vision of providing a “Total Hygienic Package” to its customers. Since Softex was already in the tissue business, diversification into the feminine and baby ware products was inevitable. The division was launched in September 2006 with premium brands namely Nurse Cotton wool, Assure sanitary pads, Assure Tampons and Baby Disposable Nappies.

The brands have gained wide range acceptance in the market and are currently being distributed through all major retail and wholesale outlets. However, efforts are currently underway to make sure that this range of products is available to all Softex customers at arms length. Softex Femcare is thus expanding its distribution arm to cover small retail shops, pharmacies, salons and flea markets. All this is part of Femcare’s initiative to avail affordable sanitary products to every woman in Zimbabwe and beyond.

Hygiene Products Hand washing and soap systems/dispensers Toilet seat cleaners Sanitary bins Bins sanitizers Sanitizer dispensers Refills Aerosol dispensers & refills

For more information please contact: Tel: +263 4 770099 Fax: +263 4 770132 www.artcorp.co.zw

Femcare Products Assure Sanitary Pads Assure Tampons Nurse Cotton Wool Baby Disposable Nappies Adult diapers Sweety diapers Softex sanitary pads Softex panty liners

biggest supplier is National Waste Collections, which is a group company,” says Chijokwe. “Our main customer is a sister company called Softex and they take 50 percent of our output.”

Like Kadoma Paper Mills, both National Waste Collections and Softex are primarily Zimbabwean companies, collecting local waste and selling to the local market respectively. However, Kadoma is not constrained by its national borders and also exports to Zambia, Malawi and Burundi.

Additionally, while the majority of the waste paper used in the manufacture of its tissue products comes from Zimbabwe, is also imports from South Africa and the pulp for its virgin tissue comes from much farther afield. “The hardwood pulp comes from Mondi in South Africa, then the softwood we combine it with for the virgin tissue comes from Austria and Sweden,” says Chijokwe - both of which are known for their sustainable forestry industries.

The company also uses a lot of coal in its manufacturing processes, which fires the boilers, and is also sourced from local businesses.

While the global economic crisis did not impact on Kadoma Paper Mills’ market, its supply chain was affected. “We don’t sell to Europe, so we were not affected in that respect, however, some of our suppliers are European and one or two companies who used to supply us have folded due to the financial crisis.”

Although Kadoma Paper Mills is the only producer of tissue and fine paper products in Zimbabwe, it is not without competition. Both South 104 www.southafricamag.com

Kadoma Paper Mills FEATURE

African and Chinese paper mills export to the Zimbabwean market and normally have larger facilities.

An additional challenge is that these competitors will sometimes sell the finished product direct to shops, rather than selling in bulk to companies that then cut and finish the product for sale to the consumer. “Right now, we are quite small and only producing 15 tonnes a day, which makes it very difficult to compete in terms of economies of scale,” says Chijokwe.

However, the company does have in place a plan to overcome this hurdle. “We are currently doing feasibility studies into doubling our production capacity from 15 tonnes to 30 tonnes per day,” explains Chijokwe. “The main question is whether it would be better for us to purchase an additional machine with the same capacity as our current one, or to upgrade it to 30 tonnes a day. Once a decision has been made on that, we will be able to move ahead with the project.”

Another problem facing the organisation has been a national skills shortage, “In the period between 2005 and 2008 in particular, we lost a lot of people to South Africa and so there is a real difficulty finding people to work with us who have the relevant skills,” says Chijokwe. “To overcome this, we are providing training ourselves to young people. We have a quality assurance department, which is linked with our training office. They provide the necessary basic training, but also keep an eye on trends in the industry worldwide, so we can put in place programmes to ensure that our employees have all the relevant

We have a quality assurance department, which is linked with our training office. They provide the necessary basic training, but also keep an eye on trends in the industry worldwide, so we can put in place programmes to ensure that our employees have all the relevant skills and that their knowledge is up to date skills and that their knowledge is up to date.”

While the production of recycled paper could be considered an environmental business strategy in itself, Kadoma Paper Mills also has other active green programmes in place “As a company we are ISO 14000 certified, we have a separate quality certificate as well, and we run within the national benchmark,” says Chijokwe. “As part of this, we have an environmental management system in place whereby we monitor and try to reduce the water consumption per tonne of paper, coal usage per tonne of paper, electricity and the usage of the waste paper. Unfortunately, we are not able to measuring pollution levels currently, as we don’t have the capacity to do that. But in general terms, our commitment is to try to minimise our consumption of natural resources as a far as possible.”

The main objective for the company in the near term is to implement its expansion strategy, doubling the capacity of the plant. “We know that there is the market capacity and the demand for us to double our rate of production. We aim to be have decided how we are going to achieve this soon and have it up and running by 2017, which is what will take the company forward in the long-term.” END www.southafricamag.com 105

front ouT IN

Top Trailers is known for creativity and innovation.

This year it celebrates its tenth birthday.

By Susan Miller

106 www.southafricamag.com

Top Trailers FEATURE

T

op Trailers, one of the largest trailer manufacturers in South Africa celebrates its tenth anniversary this year, business operations having commenced on March 1, 2002.

I asked National Sales and Marketing Manager William Mathee (MW) how he thinks the business is doing and what’s being planned for the future.

Q: How do you mark the last ten years?

MW: We look at our designs from the past ten years.

Every year we focus on new innovations in order to improve the quality of all our products.

One example is our Side Tipper range where we started off with Mark 1 and we’re currently at Mark 6 in design terms. Every new design is a highlight and we intend to do that on an ongoing basis.

Q: Tell me more about your newest design?

MW: Our brand new Swingbin was launched in November last year at the Johannesburg International Motor Show. The main difference between the Swingbin and a Side Tipper is the safety aspect. With the Swing Bin the centre of gravity remains exactly in the middle of the trailer, making it more stable.

The bottom basically falls out so it offers a lot more stability. With the Swingbin no tipping takes place – your bottom falls out, your top rises – it’s like a mouth that opens.

Q: You tailor make trailers for customers. How does that work?

MW: The customer will contact us with his/her unique requirements in terms of the product the customer transport, the terrain and the quality of the roads and the required payload. After he gives us the basic idea, we will design a trailer for him. The Swingbin came about through one of our customers who had the idea when he was fitting his kitchen doors. When he opened the doors he said hang on a second – ‘when I open this everything just falls out’. He came to us. The concept is very simple. We started talking and ended up with the swing bin.

So ideas can start with customers and we will follow them through.

Ideas can start with customers and we will follow them through William Mathee

Q: Can you sell these ideas all over the world?

MW: Yes. We are currently focused on our local market but our intention is to expand

www.southafricamag.com 107

into neighbouring countries like Angola and Zambia. We will also take our product overseas. At the moment we’re still battling to keep up with local demand but there is a lot of potential out there. Whoever we intend to be the first big mover, reaping the benefit of it.

Q: How would you classify your company?

MW: There are basically three big operators in South Africa – Afrit Trailers, SA Truck Bodies and Top Trailers. We see ourselves in the top three.

Q: And where are your premises based?

MW: We’ve got three factories – two in Joburg in the Wakefield area and one in Cape Town in Atlantis.

Then we’ve got the repair depot (it can also build new units) in Middleburg. We also do repairs in Heidelberg and in Richards Bay in KwaZulu Natal.

Apart from moving cross border and looking at opportunities overseas, we will also look at local expansion on an ongoing basis

Q: Are there any new avenues for Top Trailers?

MW: Apart from moving cross border and looking at opportunities overseas, we will also look at local expansion on an ongoing basis. We operate a small business, Leader Trader Bodies, in Ermelo where we focus on new Rigid Tipping Bodies as well as general trailer repairwork.

Q: Over the last ten years how have things changed in the industry?

MW: The requirements affecting the materials you use have changed. There is a lot of emphasis on quality and durability. If we compare the trailers that we build now to trailers that we built ten years ago there is a big improvement. Our railway system over the last ten years has being shocking so road transport had to replace it. There are a lot more trucks out there. In terms of the volume and demand for trailers over the last ten years you actually can’t compare it.

Q: Does industry keep in touch with government?

MW: The National Road Transport Association meets every month. It helps to know exactly what the industry requirements are and the influence of government and the decisions they made, on the industry.

108 www.southafricamag.com

Top Trailers FEATuRE

Q: Many countries are going through a crisis how do you feel about the SA economy?

MW: My view is that by the end of this year things should be better. Of course it depends on the sector that you service.

Coal mining is in demand and it’s going very well. Luckily for us the majority of our customers transport coal and that is one of our specialised applications.

new. The manufacturing side was a bit new but I do have my MBA so I had some background. To be honest it is still a bit of a challenge.

Q: How important are business relationships?

MW: A very good relationship with our suppliers is critical as your factory and business depends on getting the right raw materials at the right time.

We are working towards being part of an integrated network involving our customers and suppliers. We like to let our suppliers know exactly what we are busy with.

Q: Your motto: ‘the Sky is Not the Limit’ is certainly catchy MW: The message we want to get across ‘is that whatever the design or the need, whatever the customer wants – we will build it for him. There’s no limit in terms of new ideas and innovation. That’s how we want to be known...’ END

Q: Are Top Trailers exceptional in offering 24 hour road side assistance to all your customers? They could be anywhere in SA...

MW: Yes, that is one of our competitive advantages. If there is a service need we will send somebody out wherever the customer is even if it takes him five to ten hours to get there. That it is not negotiable. That is simply what we do.

Q: I see you joined Top Trailers three years ago?

MW: Yes, funnily enough I worked for Absa Bank for 19 years and Top Trailers was one of my customers. They wanted somebody to look afters sales nationally and we started talking. I decided to see what happens on the other side of the fence.

Q: That was quite a change?

MW: I was involved in asset finance so from a financial point of view it was not

Q: What would you like to say to your customers?

MW: If it was not for them our business wouldn’t exist. I would like to thank them for their support.

Squeezing the Willow Creek’s pioneering Gourmet Squeeze olive oil bottle is causing quite the stir – chefs, foodies and kitchen novices alike absolutely love it and the accolades (and sales) are rolling it. The firm hopes to use it as a springboard for growth, says managing director Andries Rabie, who proclaimed, “There is nothing else like it on the market”.

By Ian Armitage

110 www.southafricamag.com

Willow Creek FEATURE

T

here are many inventions that have changed the world – The iPad, the barcode, the microwave, social networking, and the text message have all helped shape the world we know today (South Africans known to be Africa’s most active ‘Tweeters’).

Rather aptly, it was one of those inventions, Twitter, which led us to the discovery the next big thing, Willow Creek’s revolutionary Gourmet Squeeze bottle.

The Gourmet Squeeze, says its inventor, Andries Rabie, Willow Creek’s managing director, is about to “change the world of olive oil forever”.

Rabie describes it as a “real game changer”, which “has already won several awards” including Best Kitchen

A great feature is that it has an oxygen barrier and UV filter built into the brown hue of the bottle to keep the oil’s shelf life of at least two years intact

www.southafricamag.com 111

Willow Creek FEATuRE

Cupboard Must-have and Best South African Product in the 2011 Fairlady Consumer Awards, a Gold Medal at the Gold Pack Awards and a distinction at the esteemed L’Orciolo d’Oro olive oil competition in Gradara, Italy – a special feat considering that other entrants included olive oil masters from Italy, Spain, Greece and Argentina.

“People love Gourmet Squeeze for its practicality and convenience,” Rabie says. “The handy 750ml bottle boasts an easyto-use nozzle with a 1.5mm pour opening, which allows you to direct and control the flow of olive oil as desired. Simply unscrew the cap, give the bottle a gentle squeeze and voila – no fuss, no mess.”

The unique nozzle allows the olive oil to be poured slower than with traditional olive oil spouts, he says, which has a number of advantages including minimising waste.

“It is one of those things that when you have used it once you wonder how you ever coped without it!”

The PET bottle is also “environmentally friendly and fully recyclable” and the fact that it cannot break when dropped is another huge plus. It will forever change the lives of chefs, foodies and kitchen novices alike.

“A great feature is that it has an oxygen barrier and UV filter built into the brown hue of the bottle to keep the oil’s shelf life of at least two years intact,” explains Rabie.

“We want our clients to have a really extraordinary experience when using our products – both in terms of quality and superior taste 112 www.southafricamag.com

and in terms of modern efficiency.

This product ticks those boxes.”

Willow Creek Olive Estate is known for its award-winning olive oils and its groundbreaking innovation regarding the packaging of their products, he says.

“Everybody is going mad about the Gourmet Squeeze. We only launched it a few months ago in South Africa and it has already surpassed all of our other variants in terms of unit sales, even our flagship Directors Reserve. We have a special running with Pick n Pay and it is doing phenomenally well. We are very happy.”

Significantly, May will mark the tenth anniversary of Willow

Proud Transporters of Willow Creek Olive Estate Products

It is one of those things that when you have used it once you wonder how you ever coped without it For more information or reference contact details on these projects or any other Grotto assignment, kindly contact our oďŹƒces: Grotto: PO Box 1570, Parow 7499 4 Manchester Road, Airport Industria 2, Cape Town Tel: +27 (0)21 386 1555 Fax: +27 (0)21 386 1606 Email: info@grotto.co.za Web: www.grotto.co.za

Creek’s first venture into the world of olive oil.

“I grew up on the farm, which has been in the family since 1781,” Rabie says. “Farming is in my blood and I’ve always had a passion to create something where you can add value. I believe the future of farming lies in adding value not only in the land itself but also in a brand. At that moment in time we were farming wine grapes, table grapes, potato seed and some other vegetable crops.

A friend of mine told me about olives and I started investigating it. That was 1997. I realised we had the perfect climate for it as well as soils with 3.5 million parts of calcium, which are probably the highest calcium composites in the Western Cape. It is ideal conditions and makes the fruit intensely flavoured.

“Olives became my passion.

They are now part of me. I think

Farming is in my blood and I’ve always had a passion to create something where you can add value.

I believe the future of farming lies in adding value not only in the land itself but also in a brand

that is what makes us so successful – we are passionate about what we do. I started planting the first trees in 1999. In 2002, I started producing the first oil and from there it has just exploded. We are now about 50 times bigger than we were in terms of volume of oil and we are still growing – we still have to grow another probably 50 percent from our production where we are now. We have come a long way in terms of volume produced.”

All the main cultivars are grown on Rabie’s farm, in the Nuy Valley, just outside of Worcester, including Frontoio, Corotina and Koroneiki.

“We’ve got approximately 173,000 trees across several varieties including table cultivars like Mission and Kalamata,” he says.

114 www.southafricamag.com

Willow Creek FEATuRE

Willow Creek Estate comprises 270 hectares and has become one of the largest estate olive oil producers in the South Africa.

“What is our secret? We are consistent, have a quality product that appeals and are innovative.

“We are selling predominantly into the local market, but we are actively seeking export, especially with the Gourmet Squeeze. We had a show in Washington in the USA and have an agent there. We also have an agent in Hong Kong, selling into the Chinese market.

“Olives are seasonal. In SA we harvest April, May and June, so we are starting soon with a new harvest. Olive oil is always at its best when it is freshly pressed. An intense olive oil can last for up to three years, but

the rule of thumb is a Best Before date two years from production although this varies according to the cultivars and the degree of ripeness of the olives used in the blend.

“It is a commodity product, obviously. You have to build long-term relationships with clients and you need to start fishing a year before you catch any fish.”

The future, then, is bright. “I have a saying that you have to be the first, the best and different – I like to base everything I do on those principles,” Rabie says. “We are very much looking forward to celebrating our anniversary in May, on the weekend of May 11-12, and have a whole host of events planned. We’ll celebrate in style.”

To learn more visit www.willowcreek.co.za. END www.southafricamag.com 115

cool ThE kINgS oF

Water-cooling specialists IWC has won top end market share and business retention with quality bespoke solutions and a comprehensive customer service, says IWC Director Roger Rusch. Late last year, Medu Capital took an interest in the firm, acquiring a 62 percent equity stake.

By Ian Armitage

116 www.southafricamag.com

W

hile it is not the biggest operator in the South African industrial watercooling sector, IWC has won it the business and allegiance of industry giants.

“We are selling the technology and the know-how to solve problems and improve efficiencies,” says IWC Director Roger Rusch, who spoke

to a South Africa Magazine researcher. Businesses like Eskom, Africa’s largest producer of electricity, and chemicals giant Sasol, are amongst the names IWC has worked with.

The secret to the firm’s success? A famously strong focus on quality and customerspecific solutions, says Rusch.

“We offer quality bespoke solutions and a comprehensive customer service,” he explains.

IWC FEATURE

“We try not to fit everybody into the same box. We look for tailor-made solutions for our customers. We set out to understand their requirements and give them a product or solution that will meet their needs.”

Midrand-based IWC (Pty) Ltd was founded in 1986 as Industrial Water Cooling. It specialises in evaporative water-cooling for a wide range of applications. Industries covered include power generation, mining, petrochemical, sugar, steel, food and beverages, airconditioning and refrigeration.

“Early on, IWC developed in-house expertise to undertake custom GRP fabrications related to the cooling tower industry,” says Rusch.

It also undertakes on-site GRP piping repair work as well as corrosion resistant linings.

“We do the whole range of cooling towers from the smallest fibreglass package unit suitable for anybody from dry cleaners, injection moulders, canneries, all the way up to the refurbishment of large natural draft towers for clients such as Eskom and Sasol,” Rusch, an engineer who started out as a South African Air Force Technician, adds. www.southafricamag.com 117

IWC FEATURE

Last year, Medu Capital, a leading private equity fund, acquired a 62 percent equity interest in IWC, to, it said at the time, “capitalise on extensive business opportunities that currently exist in the refurbishment of water cooling towers across Africa”.

It said that, while renewable energy solutions are increasingly coming to the fore, coal powered energy will continue to be a primary source of power generation across Africa for the foreseeable future.

Research by Global Industry Analysts suggests the global market for cooling towers will reach US$1.8 billion by 2015, driven mainly by repairs and innovations.

“As the only company on the African continent that has the technology and capability of providing online refurbishment service to its customers, investing in IWC is a strategic move for Medu

118 www.southafricamag.com

Capital and we are proud to have a prestigious player such as IWC as part of our investment portfolio,” said Ernest January, a director at Medu Capital.

“This investment is in line with our objectives, which are to partner with established companies and strong management teams that achieve above-average investment returns, and promote transformation,” he added. “Repairs and innovations are likely to drive growth in the short run, as mandated by the environmental regulations of governments across the world. In the future, the focus is likely to shift towards construction materials, positioning and energy consumption of fans, reduced noise levels and the use of natural cleaning systems to restrain bacterial growth.”

As the only company on the African continent that has the technology and capability of providing online refurbishment service to its customers, IWC was the logical choice.

“It was a strategic move for Medu Capital,” says Rusch.Medu Capital has R1.5 billion of funds and assets under management and a track record of partnering and adding value to the growth strategies of medium size businesses operating in all sectors of the economy.

The future for IWC is bright. “We have a lot of experience in the installation of cooling towers and

EFFICIENT, DURABLE FANS CAN MAKE A DIFFERENCE IN DRY OR WET COOLING APPLICATIONS …

HOWDEN KNOW-HOW Howden’s cooling fans are used in Africa’s power stations, mines and industrial plants for dry cooling applications and in cooling towers. Whether they are used in boiler houses or steel works, our fans offer a combination of superior performance and efficiency.

Modern fan selection software is used to determine the correct blade shape and rotational speeds for each application. Once they are installed our fans provide the highest flow of air and maximum energy efficiency.

All Howden cooling fan installations receive comprehensive support, from the initial proposal and engineering to long-term service and technical maintenance at site. Special low-noise models are available, and high-durability options can be specified for use in hostile environments where fans are subject to acid attack.

Howden Africa 1A Booysens Road, Booysens 2091 Johannesburg, South Africa Tel: +27 11 240-4000 Fax: +27 11 493-0546 Email: enquiries@howden.co.za Find out more:

howden.co.za © Howden Africa. All rights reserved 2012

117x170.indd 1

associated plant, and an all-inclusive range of services,” says Rusch. “We’ve been active in the refurbishment of cooling towers and bulk air coolers of all makes, types and sizes over the past two decades – and that includes the installation of fill material, drift eliminators, spray systems and nozzles as well as fan mechanicals.”

As an alternative to a new purchase, old cooling towers can often be refurbished, he says.

In most old towers wood fill and drift eliminators are replaced with more modern plastics and stainless steel. In many cases, it has been possible to upgrade the performance of an existing tower by judicious re-design of the internal components and fan system.

“We are the African leader in the refurbishment of Natural draught cooling towers, and have a vast amount of experience,” Rusch says. END

2012/04/04 8:42 AM

We have a lot of experience in the installation of cooling towers and associated plant, and an all-inclusive range of services Roger Rusch

To learn more visit www.iwc.co.za. www.southafricamag.com 119

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

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

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

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

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

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

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