SAMag - Issue 26

PEOPLE CULTURE TRAVEL PROPERTY BUSINESS WINE SPORT ENTERTAINMENT

ISSUE 26 R40.00

A CAN-DO ATTITUDE Nampak’s Angolan investment exceeds expectation

Interview: Ezra Ndwandwe

Entrepreneurship can boost employment!

Olympic dreams

SASCO official look forward to the London Olympics

Kraft Foods SA

Cadbury Dairy Milk is a fair trade pioneer

Imperial rule

IMPERIAL Logistics is a global logistics and supply chain management leader

Countdown to London 2012 South Africa’s countdown to the London Olympic Games is well and truly on and we have high hopes. The South African Sports Confederation and Olympic Committee (SASCO) has spent R34 million on preparations for the games and R15 million more to ‘deliver the team’ according to CEO Tubby Reddy.

On page 18, Ezera Tshabangu, SASCO’s General Manager: High Performance Department, talks about the work that has gone into getting the team ready for London and what we can expect to achieve.

Editorial

Editor – Ian Armitage Sub editor – Marie Toms Editorial Assistant – Clare Durrant Writer – Colin Chinery

Business

Advertising Sales Manager – Andy Williams Researchers – Elle Watson Sandra Parr Thomas Aras Stuart Platt Tom Lloyd Sales administrator – Daniel George

Accounts SASCO President Gideon Sam is confident that we can return with a haul of 12 medals. Is that likely? And is it money well spent?

Away from the Olympics, we interview the creator and producer of The Big Break Legacy Ezra Ndwandwe who is convinced entrepreneurship can lift South Africans out of unemployment. We also look at how Nampak’s investment in Angola is progressing, weigh up the pros and cons of Fairtrade, learn why SA’s fishing industry is excited for the future and we bring you all the latest business and lifestyle news. Finally, we’ve an exclusive interview with the DTI’s Deputy DG Tumelo Chipfupa and we talk to IMPERIAL Logistics’ Chief Integration Officer Cobus Rossouw.

Financial Administrator – Suzanne Welsh

Production & Design

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

digital & IT

Head of digital marketing & development – Syed Ahmad

TNT Publishing

CEO - Kevin Ellis Chairman - Ken Hurst Commercial - David Alstin Publisher - TNT Multimedia Ltd TNT Multimedia Limited, Unit 209, 16 Brune Place, London E1 7NJ tntmagazine.com

Enquiries

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

Enjoy the magazine!

Subscriptions

Ian Armitage Editor

www.southafricamag.com

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

www.southafricamag.com

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Contents 06 14

news All the latest news from South Africa Interview Ezra Ndwandwe Susan Miller catches up with the Big Break Legacy creator

cover

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sport Olympic countdown Can SA bring home the expected 12 medal haul?

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FOCUS MANUFACTURING Nampak Bevcan South Africa Magazine revisits Angolata, the beverage can-making plant in Angola completed last year

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50 54

FOCUS SUPPLY CHAIN Imperial Rule We talk to IMPERIAL Logistic’s chief Integration Officer Cobus Rossouw

the decline Halting As the number of letters being posted continues to decline, Zimpost has to evolve

60 66 70

FOCUS MANUFACTURING The DTI Are special economic zones good news for South Africa, for industry and for jobs?

Iron & Steel Unica An ambitious plan to expand production and create jobs

Land Rover Jaguar Operations director Brian Hastie

and managing director Kevin Flynn talk to South Africa Magazine

fantastic Plastic SA Leisure (Pty) Ltd. designs, produces and sells plastic consumer products

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FOCUS FOOD & AGRICULTURE It’s a fair crop Cadbury Dairy Milk is a South African fair trade pioneer nicely afloat Staying Diversification key to the success of

Pioneer Fishing’s east coast operation

Mills Brenner The home of Shaya

FOCUS PROPERTY City for the new century Century City is Cape Town’s premier mixed-use development

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awakening Vukile’s Property company Vukile performs

well in difficult trading environment

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FOCUS HEALTH CARE Health care heroes Intercare is transforming the health care system FOCUS CONSTRUCTION The turnaround specialists Interview with Lafarge Gypsum SA’s Jean-Paul Croze FOCUS TRAVEL NACL Zambia Zambian airport facelift lands more tourists FOCUS retail The comeback kid South Africa Magazine profiles Super Group, the global logistics and supply chain management specialists www.southafricamag.com

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All the latest news from South Africa Lifestyle

New police boss named Mangwashi Victoria Phiyega has been appointed South Africa’s first woman police commissioner, replacing General Bheki Cele, President Jacob Zuma has announced.

“I have decided to release General Cele from his duties,” Zuma said.

Polokwane-born Phiyega currently chairs the presidential stateowned enterprises review committee and is a director

at Tsa Rona Investments.

She was also part of the 2010 Soccer World Cup bid committee.

Explaining his decision to dismiss Cele President Zuma said “The board has found General Cele to be unfit for office and has recommended his removal from office.

“Having thoroughly considered the report of the board, and applied my mind thereto, I have decided to

release General Cele from his duties.

“General Cele still has a lot to contribute to the country given his experience and commitment to making South Africa a better place for all each day.”

Last year, Public Protector Thuli Madonsela found Cele’s that involvement in deals to acquire police office space was “improper, unlawful and amounted to maladministration”.

Sport

Bafana Bafana coach axed Pitso Mosimane has been sacked as South Africa’s head coach with two years left on his contract.

He was axed following Bafana Bafana’s disappointing 1-1 home draw against Ethiopia in the opening match of the campaign to qualify for the 2014 World Cup. Steve Komphela, a former Bafana captain, will guide the team in their next two matches.

He has asked for patience and support for the 6

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team as they resume their 2014 Fifa World Cup qualifying campaign.

“The players we have in camp, who are soldiers, need support,” he said.

“We have to accept and support. It’s the only way.”

Bafana Bafana failed to qualify for this year’s African Cup of Nations and the South African FA have acted quickly to ensure the World Cup dream doesn’t end in tatters.

Business

Gautrain Business completes first passenger run to

Park Station The Gautrain has made its first passenger run to the new Park Station in the Johannesburg CBD. The new line was scheduled for launch last year but was delayed by water seepage in the tunnel.

Passengers up until now have caught the train to Rosebank station and then a Gautrain bus into the Johannesburg CBD. A single pay-as-you-go train trip between Hatfield and Park stations costs R52 while the analogous trip between Sandton and Park costs R22.

Cell C to axe 150 workers

South Africa’s third-largest cellphone operator Cell C has announced plans to retrench 150 employees, which it says are vital in terms of repositioning the company and making it more competitive.

Cell C currently employs around 1280 permanent and fixed-term employees and has a 13 percent share of the cellphone market.

The retrenchments are part of new changes under the leadership Alan KnottCraig, the former Vodacom CEO who joined Cell C on April 1, promising to change the South African telecoms space.

The layoffs would account for 12 percent of the company’s workforce.

confidence

hits 10-year low The South African Chamber of Commerce and Industry (SACCI) says business confidence plunged to a 10year low of 92.8 in May, with the unstable global economic environment taking its toll on domestic firms.

The SACCI Business Confidence Index (BCI) is now at its lowest level since November 2002 when the index stood at 92.1. Its most recent low was 93.1 in March 2009, during the recession which started in December 2007.

The BCI was 94.3 in April.

“Local business environments continue to be plagued by challenges. The lack of alignment across economic policy positions locally is cause for concern as business seeks policy stability in an increasingly perplexing domestic economy,” SACCI said in a statement aptly named ‘Harsh Business Realities’.

It added, “SACCI is concerned that the fiscal tightrope that Europe needs to walk while balancing economic sustainability and political intolerance will leave Europe’s debt crisis unresolved for the short to medium-term. The contagion from the economic impasse in Europe is gaining in global impact as faster growing economies are now also experiencing a slowdown while circular and multiplier effects continue to grow.”

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Euro Crisis

Barclays CEO

says euro will survive

Bob Diamond, the CEO of Barclays, has backed the euro to survive despite renewed speculation that it may collapse.

Speaking in a Bloomberg Television interview, the 60 year old American said, “The underpinnings of the single currency, the underpinnings of the integrated economy across Europe are very, very strong. We’re going to continue to see some event risk as we, in our opinion, march toward, over the next couple of years, closer to fiscal and political integration.”

Spain recently became the eurozone’s fourth country to ask for a rescue and the future of Greece still hangs in the balance.

The region’s debt crisis won’t force Barclays to scrap its profitability target, Diamond said.

“Our commitment is very, very serious around creating returns across all of Barclays that are comfortably ahead of the cost of equity,” he said.

Mr Diamond added that the bank was seeing “some positive signs” with all three of its biggest units posting improvements in the first quarter.

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Business

Cosatu to push

for national

minimum wage

A draft policy document to be discussed at the Congress of South African Trade Unions’ (Cosatu) congress in September is proposing the introduction of a national minimum wage and a radical overhaul of the collective bargaining system.

Cosatu has proposed a three-tiered approach - the introduction of a national minimum wage; establishment of a mandatory centralised bargaining system to replace the current voluntary one; and universal income support for all adults.

“Our departure point is that one national minimum wage has numerous advantages over the current situation, providing it is set at a reasonable level, to improve workers’ lives,” Cosatu’s draft document reads.

“It would be comprehensive, clear, simple and provide a social floor for all. This is in contrast to our numerous, fragmented sectoral minimal wages with massive discrepancies and gaps.”

Euro Crisis

Spain’s banks

rescued Spain’s government has declared victory after performing a U-turn and agreeing on a eurozone rescue for its banks.

The 17-nation eurozone has agreed to provide a loan of up to 100 billion euros for distressed Spanish banks - a deal which Economy Minister Luis de Guindos insisted the deal was not a rescue, just a loan that imposes conditions on the banks.

Prime Minister Mariano Rajoy, who previously declared Spain’s banks would not be rescued, described the aid as a win for Spain and Europe.

The deal has eased concerns of a currency break up and in Asian trade the euro rose one percent against the dollar.

Lifestyle

Food more expensive

in rural SA

People in rural areas paid more than their urban counterparts for the same food in April.

The Food Price Monitor, compiled by the National Agriculture Marketing Council, found rural communities paid R14,89 more than urban consumers for the same food basket — far higher than the R2,37 extra reported in March.

Rural shoppers paid R8,24 more than their urban counterparts for 5kg of maize meal, also significantly higher than the price difference in April last year.

“A loaf of white bread, a loaf of brown bread, 750ml sunflower oil and Ceylon/ black tea were the only items for which rural consumers paid less than urban consumers in April,” the report said.

Business

SKA to be shared between

SA, NZ and Australia The bid to host the world’s largest radio telescope has ended in a tie, with the project to span South Africa, Australia and New Zealand.

“We have decided on a dual site approach,” said SKA board chairman John Womersley at a press conference held at Amsterdam’s Schiphol Airport.

South Africa’s site for the project is the Karoo region in the Northern Cape.

The Square Kilometre Array, or SKA, will be the largest and most capable radio telescope ever made and will allow scientists to see back in time.

The project comprises 3000 dishes and will be funded by a consortium of 20 nations. It seeks to answer the biggest

questions about the early universe and will observe such things as what happened after the big bang and how galaxies evolved. It will also attempt to uncover more about the “dark energy” that fills the majority of the universe.

The telescope array, which is expected to have a working life of several decades, could even detect signals that may be from extraterrestrials. www.southafricamag.com

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Sport

Afcon could cost SA R400m Hosting of the 2013 Africa Cup of Nations is projected to cost South Africa R400 million the Local Organising Committee (LOC) chief executive Mvuzo Mbebe has admitted.

Mbebe, the former SABC

Group Executive for Content Enterprises, was speaking at an LOC press briefing.

He said the final costs of the event would be agreed upon next month after a meeting with Treasury.

Mbombela, Port Elizabeth,

Lifestyle

Rustenburg and eThekwini will host Afcon matches, with Soccer City in Johannesburg set to hold the opening and closing ceremonies.

South Africa will host the 29th edition of Africa’s biggest sporting showpiece.

Business

Employment

boss nosedives Taxi sacked over

in May

After registering a 4.3 percent rise in April‚ employment in South Africa slumped an annualised 3.1 percent in May‚ the latest Adcorp employment index has revealed.

All sectors suffered declines.

The sharpest declines were recorded in transport (12.7 percent), mining (12 percent), agency work (9.1 percent), domestic workers (8.4 percent), and elementary workers (five percent).

Employment in professional positions grew 4.9 percent; senior manager employment was up 2.2 percent.

The index is regarded as the most representative monthly barometer of employment trends in South Africa.

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expenses row Santaco has expelled its president Jabulani Mthembu after a forensic investigation found “compelling evidence” that he had falsely claimed almost R1 million in expenses.

Mr Mthembu was suspended in December.

“We have unearthed compelling evidence that many defalcations occurred to the prejudice of Santaco and by extension the South African taxpayer,” Santaco said.

Mthembu allegedly claimed R25000 a month for accommodation, breakfast and laundry services at Tusisa Guest House in Pretoria – a guesthouse that doesn’t exist, Santaco’s Western Cape president Vernon Billet said.

Audit firm Tayfin started the investigation after Santaco’s national executive council was alerted to possible irregularities.

Santaco, which claims to represent more than 90 percent of the multibillion-rand minibus taxi industry, has plans to list a new low-cost airline on the JSE.

Sport

Man U price for Cape Town

friendly

‘a bargain’

The City of Cape Town has defended the decision to host a friendly match between English Premier League side Manchester United and Ajax Cape Town just weeks after failing to become one of the host cities of the 2013 African Nations Cup. United will play friendly matches against Ajax and Amazulu next month but Cape Town’s mayoral committee member for tourism, events and marketing, Grant Pascoe, said yesterday the Mother City paid less than R7 million for the privilege and got the English club at a “bargain”.

“We do not just give money away to events and tournaments,” he said. “We do revenue share so that we can recoup our costs as well and whatever services we rendered.

“You must understand that in the Cape Flats and in Cape Town across the townships Manchester United is probably the biggest supported team, uh … European team.”

Business

Find new markets,

trawlers told

SA’s commercial hake trawl fisheries could lose their Marine Stewardship Council (MSC) membership from next month, meaning they could no longer sell into the lucrative European market, a Department of Agriculture, Forestry and Fisheries official has warned.

Europe takes a large slice of SA’s deep sea trawlercaught hake catch — valued at R1.4 billion a year.

Agriculture, Forestry and Fisheries Minister Tina Joemat-Pettersson suspended SA’s annual observer programme through which scientific observers go out to sea to determine the size of SA’s hake stock, and how much can be caught sustainably.

“European consumer pressure requires such certification for fish products, without which European markets are not available,” Lionel Adendorf, a Department of Agriculture, Forestry and Fisheries spokesman on fisheries, said.

“While we will not be able to access these markets, it will give us an opportunity to look at new markets, particularly where strong and solid trade relations exist.

“We have had access to the European market long before MSC was introduced as an eco-label. It is worth noting that MSC is not the only eco label — there are also others ... It therefore does not mean SA will have no access to the European markets, but that our white fish will not be available in certain stores where MSC is a requirement.

“A result of this will be a slight decline in profits for producers but we do not expect job losses.”

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Travel

Africa to get new low-cost airline

following Lonrho deal Diversified investment company Lonrho is setting up a new pan-African lowcost airline, Fastjet.

The initiative is in conjunction with EasyJet founder Sir Stelios HajiIoannou and EasyGroup.

Fastjet -- which is an expansion of Lonhro’s popular East African low-cost carrier Fly540 -- would not operate in South Africa in the near future according to reports and would focus on east, west and southern African countries in the short term, an initiative that Lonrho executive chairman David Lenigas said could “change” the African landscape.

Lonrho said it would dispose of its aviation business, Lonrho Aviation, to Rubicon Diversified Investments, an AIM-listed investment company, for $85.7 million via a reverse takeover.

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Ed Winter, the chief executive of Rubicon, said customers should expect average fares as low as $70-$80 on link-ups between fast-growing cities such as Kenya’s Nairobi and Angola’s Luanda.

“It is the optimum time to launch because Africa is hugely underserved from an aviation perspective. It is the last frontier for aviation,” said Mr Winter, who was formerly chief operating officer of EasyJet. “Africa has a rapidly growing middle class with GDP growth fuelled by oil discoveries. It has few good roads or railways and cheap air travel is a real alternative,” he added.

Business

G DP increases

2.7% in Q1

Seasonally adjusted real GDP rose by an annualised rate of 2.7 percent during the quarter.

Manufacturing also grew - by 7.7 percent during the quarter - contributing over a third of the increase in GDP. Finance, real estate and business services also performed well, rising by 4.1 percent.

Construction rose by 3.8 percent.

However, the quarter also saw a strong contraction in the mining industry, which fell by 16.8 percent.

A fall in production was blamed on tightening electricity supply.

“Both production and consumption of electricity were low due to plant maintenance,” said Stats SA spokeswoman Kedibone Mabaso.

Business

Business backs Satawu judgement SA’s largest business advocacy group‚ Business Unity SA (Busa), has welcomed the Constitutional Court’s ruling on liability for damages during strikes‚ saying it provides legal certainty to businesses in cases where public gatherings become destructive and result in injury‚ loss of property or life.

Raymond Parsons‚ Busa deputy CEO‚ said it agreed with the court that organisers should be obliged at all times to take reasonable steps to avoid violent and disruptive conduct that could cause harm to private property and persons.

“Organisers of gatherings‚ including those which are linked to employment-related concerns‚ should be expected to make contingency plans to avoid collateral damage of the kind identified by the court‚” he said.

The Constitutional Court ruled that the SA Transport and Allied Workers’ Union was responsible for damages caused during a march in Cape Town in May 2006. It found that the Regulation of Gatherings Act afforded victims effective recourse when a gathering became destructive and resulted in injury‚ loss of property‚ or life.

Titanium industry

given R100m boost The government has allocated R100 million over a three-year period to the development of a titanium industry in South Africa.

The money, given by the Department of Science and Technology (DST), will be made available to the CSIR’s Titanium Centre of Competence (TiCoC), said CSIR materials science and manufacturing light metals manager Dr Willie du Preez.

South Africa has the

world’s second-largest titanium-bearing resources in the world, after Australia, but it does not produce any metal.

TiCoC was founded by the DST to remedy this situation.

Of the R100 million in allocated funding, R29 million will be spent on the construction of a pilot plant to produce titanium powder at a rate of 2 kg/h by the second quarter of next year.

“We recently received the go-ahead and the funding

for the plant,” notes CSIR materials science and manufacturing light metals research group leader Dr David van Vuuren. “We are in the detailed design phase of the plant now.

“Our primary activities all centre around efforts to make powder from the titanium-bearing mineral.”

Producing titanium powder is a vital building block in establishing a titanium industry.

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I N T ERV I EW:

EN dwandwe zra

Entrepreneurship can lift South Africans out of unemployment says Big Break Legacy creator Ezra Ndwandwe.

By Susan Miller

T

he creator and producer of The Big Break Legacy, the ‘TV programme that identifies, builds competence and empowers entrepreneurs’ is a firm believer in the power of entrepreneurship to lift South Africans out of unemployment.

Born in Vosloorus near Boksburg, Ezra Ndwandwe has worked for a number of international and multinational blue-chip companies.

Nowadays, with a Bachelor of Science (Bsc) from Wits, a Masters in Business Leadership qualification and as an expert in Corporate Strategy Development and Business Process Re-Engineering, he consults widely as the CEO and founder of Dual Point Consulting.

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Ezra Ndwandwe INTERVIEW

What does Business Process Re-engineering mean?

We say let’s go back to your basic identity and your aims. Let’s see how you can achieve your objectives and what processes will be needed. Businesses can lose their way and this helps to put them back on track.

We work with small and extremely large businesses like Vodaphone.

And some state utilities like the Department of Transport.

Do you believe in affirmative action?

It’s a good intention but it needs to be guided. You can’t just affirm someone – you need to invest in their skills to make up for any shortcomings in experience. Or the programme won’t deliver as well as it could do.

When we look at a business we look at its strategy and whether its processes are correct to meet its goals, we look at its systems and we look at its staff, its human capital and what is needed for it to deliver to the maximum.

This would incorporate BEE (Black Economic Empowerment) and affirmative action as part of the overall process.

Have you ever wanted to go into politics?

For my sins (laughs) I have been asked before but I feel I am good at business.

Is the SA government business-friendly?

It aspires to be as business-friendly within the confines of its political agenda. Business needs to find space within the political confines.

Do they make it easy enough for small businesses?

The intention is there but how it plays out sometimes is not ideal. There is a lot of talking the talk but a lack of understanding of entrepreneurship. In South Africa entrepreneurship is a measure you take when you can’t get a job. It should be what people are thinking about every day.

Tell us how Big Break Legacy came about?

I was watching American Music Idols and it dawned on me that the process made it so much easier for performers and musicians to showcase their talents to the big players in the industry. You could describe the show as Business Idols. It’s a chance for entrepreneurs to showcase what they can do.

When we look at a business we look at its strategy and whether its processes are correct to meet its goals, we look at its systems and we look at its staff

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Was there a lot of interest in the show?

We had something like 25,000 entries –that gave us a sense of just how hungry South Africans were to be self-sufficient.

What were you looking for?

For creativity and innovation. We wanted new ideas that had to be commercially viable. We also asked if the business could be upscaled. Could it be grown to the next level? The fourth aspect was its potential social impact – including how many jobs it could create.

How does BBL ensure all contestants walk away empowered?

They walk away with unprecedented exposure as business people and their ideas; they all get scholarships to renowned Business Schools where they can get a background in sustainability of business etc; they receive technical tools through our MTN sponsors and get coaching and advisory services for a year on how to structure their businesses.

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Ezra Ndwandwe INTERVIEW

Is R5million prize money enough to get a business going nowadays?

In SA terms it is more than enough...

What plans for BBL? We’ve committed to at least five seasons with the sponsors and the channel and we are setting up support mechanisms so that anyone who enters will be on our database and can be offered a place at our Academy and other tools to help them with their business strategy.

You are doing a PhD on the role of entrepreneurship in growing the economy.

How important is it?

Any company, from a small one to a huge conglomerate, started with an idea or a passion. This is the engine of the economy, small businesses create jobs – especially as the conglomerates are downsizing due to the recession.

What is your hope for SA? South Africa and Africa are full of potential – if only people could realise that. We need more self-sufficient people and communities. We need to get rid of the mindset that looks to government for aid. Our entrepreneurship is survivalist – simply getting food on the table every day – it’s not looking at the big picture.

People are thinking too small. I always say in SA it is difficult NOT to be an entrepreneur.

There are so many opportunities.

What economic model do you believe is right for business and people?

Capitalism with a social conscience. I am just not sure how to ensure that happens.

But capitalists must realise they don’t live in a vacuum and uplift others so that we can overcome poverty.

The Big Break Legacy is on SABC2 on Thursday nights at 7.30pm, visit www.thebigbreaklegacy.com END

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Olympic

dreams

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Olympic Dreams sport

A

Ezera Tshabangu, General Manager: High Performance Department at SASCO looks forward to the upcoming London Olympics – can SA bring home the expected 12 medal haul?

By Susan Miller

s this year’s London Olympic Games approach and we all start to get fixated on times, speeds and medal counts – and whether our top athletes and swimmers like Caster Semenya (800m) and Chad le Clos (200m butterfly) can excel and beat the world’s best – spare a thought for the South African Sports Confederation and Olympic Committee’s (SASCO’s) backroom personnel.

While SASCO President Gideon Sam asserts (with what many media commentators believe is ‘wishful thinking’) that we can return with a haul of 12 medals, there’s no doubt the administrators deserve a medal or two.

I asked Ezera Tshabangu, General Manager: High Performance Department at SASCO, about the work that has gone into preparing our Olympics team.

(Beware the acronyms... dealing with them should really be an Olympic sport).

How does the process begin?

The CEO, Tubby Reddy, appoints a project team, headed by a project manager, which is responsible for the day to day operations ensuring that all aspects of the Olympics are covered, including liaison with the London Organising Committee of the Olympic

and Paralympic Games (LOCOG) and the International Olympic Committee (IOC) where applicable.

What administration tasks are involved?

Administration tasks include the finalising of the Project Implementation Plan on MS Project and the allocating of tasks to project team members. These include services to the athletes such as preparation, medical and scientific interventions, antidoping, athletes and officials agreements, sportsperson policies, competition wear and sports entries.

We also have to look at the logistics of accommodation, transportation, generic clothing, the pre-departure camp and the accreditation of all team members.

How does SASCOC go about preparing prospective team members? Is there a coalition between the various sporting codes and how do athletes and teams get picked?

The selection policy is agreed to by SASCOC and the National Federations (NFs). This is drafted from the IOC/IF agreed policies and modified by the National Olympic Committees (NOC).

All NFs are responsible for ensuring that their athletes are aware of the policy they need to adhere to and to ensure that they attend the www.southafricamag.com 19

relevant qualification events. The NFs then submit the names of qualified athletes to SASCOC for final approval by the Board.

How does the SA team get allocated accommodation in the Olympic Village?

SASCOC gets allocated accommodation by LOCOG based on the number of athletes and officials part of the team. We then allocate accordingly based on the space we have.

Do the various codes need different times to acclimatise before the start of the Games?

Some have indicated they do, however, the team will be leaving SA together. Some will go directly to their pre games training camps and others straight to the village.

Who stays with the team members and looks after each discipline?

Each code of sport will have a Code Manager/Team Leader to ensure that athletes within that code get to their training and competition venues. Over and above this, there is a Chef de Mission responsible for the entire delegation and there is the support of the GTM (General Team Management) constituted mainly of the Project Manager and some SASCOC Support staff. These individuals are responsible for ensuring that all members of Team SA have the best support they should get to enable them to perform rather than worry about logistics.

How many team members is SA expected to send?

It depends on the final number of athletes that qualify, however we are looking at about 150-160 including officials.

Will SA compete in every event?

No. At the moment - based on the sports we have qualified for - we are likely to participate in 18 sports.

(After speaking to Ezera the SA men’s hockey side also qualified for the Games, joining the women’s hockey side that qualified in March. The men’s team sealed their spot after beating host nation Japan at the final Olympic Qualifying Tournament in Kakamigahara on May 6).

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We do not want to single out any athletes as we believe all the athletes have put in extensive effort to qualify for the Games

Olympic Dreams sport

FACT BOX SASCOC has spent R34 million on preparations for the Olympics and R15 million more to ‘deliver the team’ according to CEO Tubby Reddy.

The South African swimming team are to be hosted for a two-week training camp by Princess Charlene of Monaco in their build-up to the Games. Swimming South Africa said its squad will travel to Monaco from July 7 – 22 before heading for the Games. Previously Charlene Wittstock, the Princess, swam for South Africa in the 4x100 metres medley at the 2000 Sydney Olympics where her team finished fifth.

Who are our main hopes for Gold at the moment?

We do not want to single out any athletes as we believe all the athletes have put in extensive effort to qualify for the Games.

That’s a fair comment from SASCO so let’s look at which South Africans are being picked by the media as likely medal contenders: The Mail & Guardian suggests Gideon Sam is pinning his hopes on Cameron van der Burgh (100m breaststroke), Chad le Clos (200m butterfly), the men’s 4x100m freestyle or 4x100m medley relay with its team of Van der Burgh, Le Clos, Charl Crous (backstroke) and either Darian Townsend or Gideon Louw in swimming.

In athletics there are 400m hurdlers Louis Jacob van Zyl and Cornel Fredericks, long-jumper Khotso Mokoena and 800m runner Caster Semenya.

Also mentioned are Sunette Viljoen (javelin) and the men’s 4x400m relay team.

In mountain biking Burry Stander is definitely a contender and there’s also Sifiso Nhlapo in the BMX cycling event.

SASCOC, the media and indeed all South Africans are hoping that our Olympic Team do better than they did in Beijing in 2008. Then, 265 athletes competed and we came back with only one medal – long jumper Khotso Mokoena’s silver. END www.southafricamag.com 21

A CAN-DO ATTITUDE

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Nampak Bevcan focus MANUFACTURING

A

Last summer South Africa Magazine covered Nampak’s investment in a new canning plant in Angola. Nampak Bevcan’s investment was to ensure that its Angolan customers were more efficiently serviced and signalled that Nampak’s African expansion was back on track.

By Ian Armitage

ngolata, the beverage can-making plant in Angola completed last year by South Africa’s Nampak, has “exceeded expectations” according to Erik Smuts the managing director of Nampak’s Bevcan. “We always knew the market would require the installation of a second line, but we did not expect the demand to come so soon,” he says.

Smuts believes that there is more potential to invest, given the huge opportunities that exist in the once war-torn country.

It is easy to see why – Angola is one of sub-Saharan Africa’s largest and fastest growing economies, with a rapidly expanding financial sector and huge potential in areas such as agriculture, telecoms and energy.

“Overall we are very happy with how things are now going in Angola,” he tells South Africa Magazine. “Our operation is getting up to speed – and we are running close to full capacity on our single line investment.”

Construction of the plant in the Viana Industrial Zone in Angola’s capital Luanda started in 2008 after SABMiller awarded Nampak Bevcan a contract to supply cans to CocaCola Bottlers Luanda. However, Bevcan’s Angola project was initiated in 2004- and production only started in 2011. It was a long time coming.

“This is Bevcan’s first and Nampak’s single largest greenfield investment outside of South Africa,” says Smuts, detailing the background. “Angola is the fastestgrowing economy in Africa and possibly in the world.”

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Nampak Bevcan focus MANUFACTURING

The firm had been exporting cans to Angola from South Africa. With the volumes growing, the decision was made to install a local can line.

“It was a matter of saying, if we go in there, we can sell every can we can make.

Because we were already supplying many cans to the country from South Africa, we believed that we needed to build the facility in Angola to secure our business.

Potentially we could have lost the entire market should another player have built a line in the country.”

Things have turned out well and Bevcan is now more effectively servicing Angolan customers.

The main benefits that Bevcan bring to its customers

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in Angola are reduced lead times, substantially lower working capital costs in imported material stockholding, storage and demurrage and finally, as a result, a lot of the logistical headaches of complex and long import supply chains have been removed.

Smuts says this success could lead to other expansion opportunities.

“Cuca BGI and Coca-Cola Bottling Luanda are currently our main clients in Angola but we are definitely looking at expanding our client base.

We are in discussion with some of the other players in the market.”

While there are huge opportunities, he cautions that Angola has not been an easy place to work.

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PPG Packaging Coatings is a leading producer of coatings, inks and compounds for the Packaging industry. We serve the beverage, food, cosmetic, personal care and pharmaceutical markets as well as the paint and chemical industries.

Through our technical expertise, our service excellence and with over 125 years of experience, PPG Packaging Coatings constantly adapts and develops versatile, innovative and high performance coatings with outstanding appearance.

www.ppg.com

Nampak Bevcan focus MANUFACTURING

“One of the biggest difficulties we’ve found is around red tape. The high levels of bureaucracy are a problem, which we discovered first hand.

In some ways this is understandable given the developing nature of the economy and the desire to build a sustainable model. But, it certainly has presented challenges and delays in our project.

“I would say that doing business in Angola takes more than money; you need to be patient.

But there are wonderful opportunities.”

Angola’s manufacturing sector is in its infancy and has primarily been based on product assembly.

“From what I know we are probably one of the first that started investing into serious manufacturing, especially at this level of sophistication,” says Smuts.

The current infrastructure is not supporting such operations however and is very limited. Although there is electricity, the stability of the national grid is not good enough to support wide-scale manufacturing.

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“We generate all our own electricity. The same goes for water supply where as yet there is no piped water to our site. A pump station is currently being built to supply the area, but in the meanwhile we are trucking in our requirements.”

He says that while there are challenges, the manufacturing sector is definitely starting to grow.

“At a macro level the Angolan government has spent huge quantities on basic infrastructure. Luanda has effectively been rebuilt! This does augur well for the future, but in no small measure we have been pioneers in Angola. ” What advice would he give to other foreign investors looking to do business in Angola? “The first thing is: be patient. There remains substantial bureaucracy which needs to be carefully navigated. There are many rules. Do not take shortcuts. There will be the temptation to start projects or ventures prior to getting all the approvals.

PPG Industries is a leader in its markets, a streamlined and efficient manufacturer and operates on the leading edge of new technologies and solutions.

With more than 125 years of existence, PPG is today a global coatings and specialty products manufacturer with over two-thirds of our $13.4 billion sales in 2010 generated by our coatings activity. Strengthening the commitment to this sector, PPG went through multiple acquisitions in recent years, the most significant in EMEA being the Ameron acquisition in 2006, Sigma Kalon in 2008. They provided access to new market sectors in EMEA in Architectural, Marine and Protective coatings and increased our presence in Automotive, Refinish, Industrial, Aerospace and Packaging coatings businesses. It is our vision to continue being the world’s leading coatings and specialty products and services company, serving customers in construction, consumer products, industrial and transportation markets and aftermarkets. PPG has manufacturing facilities and equity affiliates in more than 60 countries around the globe.

Not only that, PPG is one of the world’s leading producers of packaging coatings. We supply innovative, high-performance products for virtually every end-use.

The metal packaging industry is becoming increasingly innovative. New shapes, novelty printing and distinctive decoration help brand-owners’ products stand out on the shelves. To make this happen, PPG Packaging Coatings is constantly adapting and developing coatings to be versatile, easy to apply, reliable and to achieve outstanding appearance.

PPG Packaging Coatings operates in Europe, Africa, Asia, Australasia and on the American continent.

Our corporate R&D centre is located in Alison Park, Pennsylvania where chemists dedicated to the Packaging business focus on long-term projects. Our development laboratories are located around the world to respond to local market needs.

PPG Packaging Coatings’ products and services offer a complete range of solutions for the Beer & Beverage cans and easy-open-ends, food cans, aerosols cans, tubes, general line cans and drums, caps and closures and peel-ends markets. Our product portfolio comprises technologies for both aluminium and steel substrates, encompassing both internal & external coatings with products that combine superior performance at value-added costs. Also included are coatings designed for plastic tubes made for thermal and UV curing, combined with all the relevant application processes.

Since PPG Coatings South Africa has a unique manufacturing facility in Alrode, Johannesburg, we are well positioned for local value-add to PPG’s global cutting edge technologies. Our local access to PPG’s global research network and quality approach coupled with our local infrastructure and support makes PPG an essential business partner.

PPG Coatings South Africa has successfully supplied Bevcan with external decorations for the 2PC Beer and Beverage can for more than the past decade. We are well positioned to support the Beverage market with all their internal and external coating and Ink requirements.

This is just one way in which PPG supports their customers with quality systems, inventory management and the overall integrity of their cans.

www.ppg.com/packagingcoatings www.southafricamag.com 29

Nampak Bevcan focus MANUFACTURING

We have been fastidious in ensuring that we comply with Angolan legislation to avoid further delays and substantial costs at a later period in our investment.

“One of the reasons for the delay in the project is that we did not take shortcuts. We know that if we chose to follow such a path it certainly would have compromised our investment in the long-term. I would caution against that.

“I would also caution any investor to assess the costs very carefully. There are a many hidden costs in the system.

“Ultimately however we hope to install a second production line in Angola and continue to grow our presence in the market. We are in discussions with our major customers to secure the volumes for this line - the original

Cuca BGI and Coca-Cola Bottling Luanda are currently our main clients in Angola but we are definitely looking at expanding our client base. We are actually in discussion with some of the other players in the market

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Industrial Oleochemical Products Packaging Coatings SA has been supplying Nampak Bevcan with internal coatings under license from Akzo Nobel for both two piece food and beverage cans for over 2 decades and pride ourselves on outstanding and consistent quality products.

A brand new state of the art production facility was commissioned in Durban in 2010 to cater for both current spray lacquer technologies as well as BPA free material.

Our environmentally friendly, water-based Aqualure™ range of low VOC can coatings are recognized globally as providing the highest levels of internal protection of metal cans in the beer and beverage markets.

Manufactured under licence from Akzo Nobel by PACSA, a division of Industrial Oleochemical Products, Aqualure™ coatings perform a dual role in protecting both the beverage from the metal container and the container from the beverage, both aspects becoming increasingly important as more aggressive and lavour sensitive products are introduced into the market.

www.oleo.co.za Tel: +27 31 461 8680 Fax: +27 31 461 3743

plant footprint was designed for more than one production line. Everybody knows the primary investment came at a massive cost if compared to similar installations anywhere else in the world, but the benefit of putting the second line in is that it should cost substantially less. This is where additional value can be unlocked for our customers. A one-line operation on its own is not necessarily an attractive proposition for a can maker. “When we invested in Angola the view was always to have more than one line and we are at the point now where we are looking to expand this investment.�

Generally Nampak’s strategy appears to be delivering good value as demonstrated in the reported revenue growth for the first half of the 2012 financial year.

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Everybody knows the primary investment came at a massive cost compared to anywhere else in the world, but the benefit of putting the second line in is that it should cost substantially less and this is where the value gets unlocked for our customers

Nampak Bevcan focus MANUFACTURING

Steady growth in profits from South Africa and the benefits from investments in the rest of Africa are expected to contribute to an improvement in profitability for the full year, Smuts says. “Bevcan is in a positive space at the moment. Generally the demand for beverage cans has improved.

There is clearly a favourable swing in consumer perceptions and attitudes towards cans. This is very exciting.

We are investing quite heavily behind this improved picture. We have started a big investment programme to recapitalise the business. At the request of our customers we are installing new capacity that will convert much of the industry from steel to aluminium cans. We anticipate that this demand for aluminium material will grow, which

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Valspar’s diverse array of products makes it one of the most complete paint and coatings suppliers anywhere. This product line includes: Consumer “Do-it-yourself” Paints, Packaging Coatings for aerosol, tube & monobloc, beverage, food, drum, pail and additives for plastic containers; Wood Coatings; Industrial Coatings for sheet metal, appliances, floors, windows and original equipment manufacturers; Automotive and Refinish Systems; and Coatings Intermediates.

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Nampak Bevcan focus MANUFACTURING

is likely to result in a conversion of the entire market over the next few years. We expect the first new high speed aluminium production line to be installed in one of our South African factories some time next year.”

What is the secret to Bevcan’s success? Simple: it’s people. “We have an exceptional team and a policy of trying to attract the best people into our organisation. We have several technical experts on board. In my mind these are some of the best in the South African manufacturing industry. Not only are they very good at beverage can manufacture, but also many have been with us for a long time. This depth of experience really contributes to our success.

We have people that can make a plan when it is needed and react quickly to our customers’ requirements. We call this the CAN-DO attitude of Bevcan!!”

As the only beverage can manufacturer in Southern Africa providing steel beverage cans and aluminium ends, Bevcan prides itself on delivering absolute customer satisfaction.

Nampak is now a more focused organisation, and with a stronger balance sheet, it is actively pursuing a number of new growth opportunities in South Africa and the rest of Africa.

To learn more visit www.nampak.com. END

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Bevcan is in a positive space at the moment.

We are seeing good growth across most sectors. Generally the demand for beverage cans is good and there is clearly a favourable swing in consumer perceptions

Imperial

rule

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Imperial Logistics focus supply chain

South Africa Magazine talks to IMPERIAL Logistics’ Chief Integration Officer Cobus Rossouw.

By Ian Armitage

I

MPERIAL Logistics is a global logistics and supply chain management leader. To quote its website it “moves business and industry through innovation, inspiration and foresight”.

Through its established southern African and international divisions, this logistics giant provides fundamental logistics and end-to-end supply chain management solutions to blue chip customers in almost every industry in several countries. Chief Integration Officer Cobus Rossouw says the company is performing well, looking to expand and has an ongoing commitment to the African supply chain community.

It is also committed to growing and developing the industry’s skills and body of knowledge.

“IMPERIAL Logistics positions itself as an extension of our own customer’s business, building its customer’s brand alongside its own,” he explains. “In southern Africa we are a multi-branded business, comprising specialist operating companies including Imperial Cargo, Imperial Distribution, TFD, Tanker Services, Volition, CIC, Freightmax, e-Logics, The Cold Chain, Broco, Cargo Africa amongst others.”

IMPERIAL Logistics International comprises four operating units - Panopa Logistik, neska, IMPERIAL Shipping, Lehnkering and Brouwer Shipping.

Rossouw sees logistics as a “growth enabler”.

“I believe integrated supply chain management could be

www.southafricamag.com 39

Imperial Logistics focus supply chain

leveraged to achieve overall organisational transformation. While integrated supply chain management is not often considered as an enabler for change management, it can be a catalyst for organisational transformation.

“Most supply chain professionals focus on the improvement of the supply chains of the organisation, or at most, the value chains in which the organisation operates.

Few professionals consider their potential impact towards the overall transformation of the organisation.”

IMPERIAL Logistics is unquestionably the market leader and things are going very well for the JSE-listed firm which announced increased revenue and operating profit for the six months ending 31 December 2011.

Rossouw is naturally delighted.

“Logistics in Africa is a key area of growth.”

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The African logistics operations recorded revenue of R8.3 billion and operating profit of R512 million in the six months ending December 2011.

“We achieved growth despite a challenging trading environment. We have certainly confirmed our leadership position as a logistics service and supply chain management outsource provider,” Rossouw explains. “Excitingly our relationships with our clients have expanded to include not only the traditional transport and warehousing execution, but also logistics planning and integrated supply chain management. We are becoming a more fundamental part of our clients’ operations and business - and we are helping them succeed.”

He says that IMPERIAL Logistics has implemented various internal initiatives to ensure that clients can benefit from the broad spectrum of services offered by the company.

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Imperial Logistics focus supply chain

“As our clients’ supply chains mature, IMPERIAL Logistics has provided integrated solutions to address their challenges – we are a comprehensive service provider.

“We have also made exciting progress with the standardisation of information technology and this allows us to spread best practice between operations, to offer clients leading-edge solutions and to remove cost of duplication.”

Various strategic growth initiatives remain core to IMPERIAL Logistics, he says. This includes the “expansion of African operations”, comprehensive involvement in “intermodal logistics” and specific focus on skills development, sustainability and transformation.

“Those are very important to our business going forward.”

IMPERIAL Logistics’ commitment to addressing the skills gap in South Africa’s supply chain industry was recognised at the Association for Operations Management of Southern Africa’s (SAPICS) Supply Chain Education Excellence Awards.

“We won that for our Fast Forward skills development initiative,” says Rossouw. “It was named the top Corporate Supply Chain Education Programme of the Year and we faced strong competition from other industry players that included Barloworld Logistics, UTI and Value Logistics.”

Fast Forward, he says, takes a practical approach to growing the industry’s skills base by providing a framework of supply chain and logistics education and professional development for current and aspiring supply chain professionals.

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I believe integrated supply chain management could be leveraged to achieve overall organisational transformation

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Imperial Logistics focus supply chain

“The Fast Forward initiative operates across various levels - from facilitating workplace entry to in-house supply chain management programmes, tertiary education support and industry collaboration and research.”

The workplace entry element of the programme is facilitated through the IMPERIAL Logistics’ Graduate Development Programme, which offers a chance to gain “hands-on experience” throughout all areas of the logistics and supply chain management industry.

“We have a number of in-house supply chain management development initiatives,” Rossouw adds.

46

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Fast Forward also includes a partnership with the Gordon Institute of Business Science (GIBS). Rossouw says that is aimed at “elevating the visibility of supply chain management in and between firms” to help “drive improvement” and make supply chain management a career of choice.

“Why are we doing all of this? Well the first aim is to develop priority skills, which have become scarce - industrial engineers, for example. Our goals are aligned with Government objectives and ,through Fast Forward, we are actively pursuing developmental outcomes for our economy, our industry and our people.”

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He is optimistic about the firm’s future. “There is tremendous potential for us going forward in Africa and we are pursuing growth.

“For a long time people looked at Africa and getting into Africa by using southern Africa as a springboard and that remains an important way to get products to consumers in Africa and to get products and resources out of Africa. The most important change that we are actively driving is that you can’t achieve access to Africa only through South Africa. You have to develop the corridors and points of entry on the coasts as well – places like Kenya, Mozambique and Tanzania.

It is important to invest.

48

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We have also made exciting progress with the standardisation of information technology

We are actively involved in strengthening our position, either by acquisition or organically, developing new capabilities.”

IMPERIAL Logistics, which entered the South African logistics and transport market in 1975, has traditionally pursued acquisition as a means of expanding the Logistics business into Africa. One recent example is the acquisition of Namibian firm CIC – a group that has facilities in Namibia, Botswana, Swaziland, Mozambique and South Africa.

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

END

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ard.

Imperial Logistics focus supply chain

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Halting

decline the

As the number of letters being posted continues to fall, Zimpost has to evolve.

By Ian Armitage

50

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Zimpost focus supply chain

I

t is a fact of life that things change.

I think it was Harold Wilson who said that he who rejects change is the architect of decay; the only human institution that rejects progress is the cemetery.

The cemetery is pretty much where the postal letter is heading.

20 years ago it was king.

But things change: people and business wanted to send messages across faster.

Along came mobile telephones and the Internet.

It was just a matter of time before Zimbabwe’s postal company Zimpost got into trouble.

The letter has never been less popular and the number being posted continues to fall.

Zimpost has reacted.

“Since 2003 we have experienced a 40 percent decline in mail volumes.

The reduction in postal output and the advent of quicker online methods of communication have forced us to move into areas like real estate, renting out our office space and internet cafes to get revenue to sustain our operations,” Zimpost managing director Douglas Zimbango says.

“The postal service has suffered from electronic substitution. Today mobile devices provide SMS and social media services so people have shifted away from letters. Fewer people

The reduction in postal output and the advent of quicker online methods of communication have forced us to move into areas like real estate, renting out our office space and internet cafes to get revenue to sustain our operations

are writing them, send bills or even pay bills via postal mail.”

According to Zimbango the decline started in 2003.

Back then it handled 100 million pieces of mail.

In 2004 it was half that.

In 2010 it dropped down to just 15 million pieces of mail.

“Everything in this generation happens in cyber space,” Zimbango says. “We have however found solace in opening Internet cafes as part our strategic move.”

Cutting costs and surviving has become priority number one for Zimpost. After all it still has a mandate to provide a universal service.

“Our postal service plays a pivotal role in the country in terms of poverty alleviation and regional integration – it is very important. It is not just a case of saying the letter is dead and us shutting up shop.

That is not an option. And besides there will also be a demand for postal services.

Always. For that reason we want to become better. It is imperative that we build and implement strategies centred on quality service delivery and a greater focus on the customer to survive. That is what we are doing.”

Cutting costs is important too.Zimpost has streamlined its operations.

It is now automating its counter network.

“It will save an additional $1 million per month,” Zimbango says. www.southafricamag.com 51

Zimpost focus supply chain

The computerisation project started last year and Zimpost has set aside $3 million to cover the cost as it moves to catch up with international standards.

“Successful completion of this will increase our revenue base. No doubt,” Zimbango says. “We will counter automate 28 outlets and it will earn us in the region of $500,000 per month. We will eventually roll it out further, saving even more and increasing revenue.”

Software development for the pilot project has been completed. Zimpost will pilot the scheme in Harare to monitor it closely before rolling it out to the 28 outlets countrywide.

“We will be putting it out strategically.

Targeted outlets will be regional centres, border towns and high volume offices.”

Irish-American software developer Escher has been contracted to do the work with Zimbabwe. Escher has experience of similar projects having worked with other postal administrations in Botswana, Mauritius and South Africa, Zimbango says.

“The automation drive will improve our efficiency in our operations. Speed at our counters will be increased and movement of information from one outlet to another will be 52

www.southafricamag.com

increased making our service more reliable.

We want to regain all the lost customers.

New product line and services will also be introduced. Certainly we want to bring more customers into the system. And since Zimpost is situated close to the people, we want to transform post offices into modern centres where a number of transactions can happen under one roof.”

That isn’t the only measure.

“We are also introducing a new mailing system called Hybrid Mail where clients’ mail or statements will be sent electronically to different strategic points across the country,” Zimbango adds. “The move is a further attempt to diversify services. With the new system, what happens is that if any one of our customers, for example, that is based in Mutare and wants to send their statements or mail to Plumtree, all they have to do is simply bring in the mail in an electronic form, like a disc or memory stick, and we plug it in at our machines and send it. The printing will happen at the point of delivery. The Zimpost officers in that particular place will just take out the printed mail or statement and deliver it to the customer. It will cut time when delivering the physical mail.”

Funding for that scheme is also in place, Zimbango says. “We are currently going through the normal process of going to tender. The big hybrid mail machines will be at various regional centres with smaller ones located in the outlying areas.”

Over and above all that Zimpost has diversified into post bus passenger transport too.

The buses carry both passengers and mail.

To date the company has acquired two post buses, one servicing Harare-Beitbridge and the other servicing Bulawayo-Victoria Falls.

“We are actually in the process of acquiring 10 more,” Zimbango says. “We have already issued a tender. It would add to the two we already have.

“The buses carry both passengers and mail and is part of our attempts to revamp the company. Our plans are that the post buses will service all low mail volumes in areas that are in rural areas so that we limit our costs. The buses will be able to cover areas that are not covered by other buses.

“New technologies have forced clients to abandon traditional methods of communication and to remain relevant we have to do things like this. We have to stay competitive and diversify.

“We are sure letters will not completely die but we do need to remain relevant and that’s why we are going into new areas like the post bus service.

“We decided to do this so that economically we remain viable.”

Missing market shifts is what causes most business failures.

They fall into trouble either because they fail to notice the shift or for some reason react late to the changes in market needs.

The last 10 years have been revolutionary in the manner in which businesses have evolved.

Wish we Zimpost luck.

To learn more about Zimpost visit www.zimpost.co.zw. END

www.southafricamag.com 53

A ns wer i ng Zu ma’s ‘INDUSTRIALISE SA’ CALL

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Department of Trade and Industry focus manufacturing

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The Department of Trade and Industry’s Deputy DG Tumelo Chipfupa and Chief Director: Infrastructure Investment Support Unit Kaya Ngqaka explain why special economic zones are good news for South Africa, for industry and for jobs. South Africa Magazine reports.

By Ian Armitage

outh Africa needs jobs.

Unemployment recently swelled to 25.2 percent, with the economy shedding 75,000 jobs in the first quarter of the year.

The SA Chamber of Commerce and Industry (Sacci) said it indicated a need for “businessfriendly” regulation.

According to the DTI’s Deputy DG Tumelo Chipfupa, South Africa is to use special economic zones (SEZs) to do just that and transform the country’s economic prospects.

The plan is to use them to accelerate economic and employment growth.

They will replace the country’s industrial development zones (IDZs).

“It has been officially recognised that the IDZs have not been successful as they could have been in meeting their goals of employment creation and accelerated industrial development,” says Chipfupa.

He has high hopes for SEZs. “There are a lot we a lot of things we hope to get out of them.”

There are several reasons why IDZs were unsuccessful. Unlike many SEZs around the world, investors in South Africa’s IDZs receive no special incentives. And, despite initial promises that businesses in the zones would be treated expeditiously in the management of VAT and tax obligations relating to imports and exports, in practice there was little variation on the usual treatment afforded to all businesses.

From their conception, the IDZs lacked a comprehensive policy framework, Chipfupa says.

This has led to weaknesses in governance, planning, www.southafricamag.com 55

Department of Trade and Industry focus manufacturing

implementation, management and operations.

A lack of inter-agency coordination has resulted in serious deficiencies.

These lessons have been learned and will be reflected in the SEZs. “The top priority for South Africa’s SEZ programme will be to establish zones in which it is considerably easier to establish and run globally competitive businesses particularly labour-intensive businesses,” Chipfupa says.

It will help aid President Zuma’s call to ‘Industrialise South Africa’, the multibillion rand infrastructure and investment drive

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SEZs will enable us to strengthen our manufacturing base and attract investors to the country

heralded in his State of the Nation speech.

“SEZs must do more than offer an investment proposition that is marginally better than what is available outside the zone - success requires that SEZs be globally competitive. The SEZ policy and bill aim to put a governance framework in place to improve management of zones, expand range of support measures, ensure a longterm financing framework to attract long-term investment, contribute towards industrial development, establish a SEZ board to advise the minister and establish a SEZ fund to back-up incentives.”

IDC – a new path to development Since 1940, the Industrial Development Corporation, South Africa’s largest development finance institution, has helped to build the industrial capacity that fuels the country’s economic growth, by funding viable businesses.

As the government’s key partner in revitalising the economy, the IDC focuses on priority economic sectors that offer the greatest potential to unlock job opportunities.

Our vision To be the primary driving force of commercially sustainable industrial development and innovation to the benefit of South Africa and the rest of the African continent.

Our mission The Industrial Development Corporation is a national development institution whose primary objectives are to contribute to the generation of balanced, sustainable economic growth in Africa and to the economic empowerment of the South African population, thereby promoting the economic prosperity of all citizens. The IDC achieves this by promoting entrepreneurship through the building of competitive industries and enterprises based on sound business principles.

Chillibush6742IDC

What we do Through partnership, the IDC provides funding in support of industrial capacity development by: • Proactively identifying and funding high-impact projects • Leading the creation of viable new industries • Using our diverse industry expertise to drive growth in priority sectors • Taking up higher-risk funding in early-stage and high-impact projects

Telephone: 086 069 3888 Email: callcentre@idc.co.za To apply for funding online visit www.idc.co.za

What we offer you The IDC assists start-up and existing businesses with a minimum funding requirement of R1 million and a maximum of R1 billion.

Funding is offered across its mandated sectors under the following Strategic Business Units: • Agro-Industries • Chemicals and Allied Industries • Forestry and Wood Products • Green Industries • Healthcare • Information and Communication Technology • Media and Motion Pictures • Metal, Transport and Machinery Products • Mining and Minerals Beneficiation • Strategic High Impact Projects and Logistics • Textiles and Clothing • Tourism • Venture Capital Special funding schemes are available that address transformation and entrepreneurial development (TES); topping up equity contributions from entrepreneurs (TES & RCF); and sector-specific schemes (horticulture, forestry, clothing and textiles, hospitals).

The IDC Gro-e-Scheme provides funding for projects from R1 million to R1 billion at prime less 3% for up to five years.

The IDC’s business support programme addresses non-financial support to entrepreneurs. Assistance is provided with capacity building to improve project viability.

If you have a project that can contribute to building South Africa’s industrial capacity and creating jobs, visit www.idc.co.za to find out how the IDC can help build your opportunity.

Chief Director: Infrastructure Investment Support Unit Kaya Ngqaka views SEZs as “an instrument of industrialisation”.

“There are a number of instruments that could be used to achieve our industrial objectives and position South Africa in the global economy with a strong industrial base – SEZs are certainly one. They have worked in China and other countries, of course. SEZs will enable us to strengthen our manufacturing base and attract investors to the country. We need to make ourselves a stronger choice. The BRICS partnership is opening up opportunities, as a gateway to the continent and SEZs will help us take advantage of our position and mineral resources.”

South Africa’s trade to the BRICS countries of Brazil, Russia, India and China, increased by 29 percent last year.

“SEZs are tools for long-term industrial and economic development. They create an enabling and sustainable environment for foreign and domestic direct investment to thrive. And they help to build targeted industries, developing regions and building

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industrial infrastructure,” Chipfupa adds.

“The aim is to promote value-added exports and export-oriented industries and to attract domestic and foreign direct investment, as well as desired foreign technologies.”

Trade and industry minister Rob Davies has given his assurances that proposed legislation on SEZs will be finalised and implemented as speedily as possible and has described them as “one of a number of new instruments we have developed to create an appropriate environment for foreign direct and domestic investment as well as the development of strategic industrial capabilities”.

It is an acknowledgement that SEZs won’t work on their own; they will help support the development of targeted industrial capabilities, the IPAP and New Growth Path framework, Chipfupa says.

“Government is behind SEZs. They allocated R2.3 billion over the medium term of new funding for this. That speaks for itself.”

He points to new schemes such as the DTI’s recently announced drive to boost

Department of Trade and Industry focus manufacturing

Government is behind SEZs. They allocated R2.3 billion over the medium term of new funding for this. That speaks for itself

competitiveness in the manufacturing sector as key also.

“We have unveiled moves to boost job creation and competitiveness in manufacturing through the Manufacturing Competitiveness Enhancement Programme (MCEP).”

The R5.8 billion support scheme was unveiled during February’s budget and is a three-year programme designed to boost investment in the sector and encourage a broad range of manufacturers to invest in competitivenessraising equipment and processes.

Eligible companies can apply for capital investment grants and funding to improve their competitiveness.

“The manufacturing sector has experienced a number of challenges,” says Chipfupa. “The result is that many are reluctant and wary about making investments. We want to support manufacturers, encourage manufacturers to make investments that are going to raise competitiveness.”

Firms can begin applying for grants from June 4.

“Do I think SA has a bright future? Yes I do,” Chipfupa says. “We have overcome many challenges as a nation and certainly overcome the odds. We’re very optimistic about our future.”

He points to successful moves to stabilise the clothing, textiles and leather and footwear industries that had helped save further job losses as reasons for optimism.

“The Clothing and Textile Competitiveness Improvement Programme not only stalled employment losses but led to a modest increase in employment. We learn a lot for schemes like it and use the thinking to make sure programmes like the SEZ are as successful as possible. South Africa has a very bright future.”

To learn more about the DTI, its programmes and how your business could benefit visit www.dti.gov.za. END www.southafricamag.com 59

mettle S howing its

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Unica Steel focus manufacturing

U

Unica Iron and Steel Pty Ltd’s managing director Mohammed Asif Qasim talks South Africa Magazine through a plan to considerably expand production and create local jobs.

By Ian Armitage

nica Iron and Steel Pty Ltd’s fully integrated mini steel plant is a first of its kind in South Africa. It is a scrap based steel plant, where scrap metal is melted in induction furnaces and made into ingots. These are then reheated and rolled into mild steel square bars, mild steel flat bars and mild steel angle iron, managing director Mohammed Asif Qasim says.

“The concept originates from China and India.

Basically we are making steel from steel. We take the scrap and roll it into light mild sections which are used to produce mild steel products like window sections, flat bars, angles and channels.”

Domestic demand has been strong he says, which has led to Unica embarking on a major investment programme.

“At this present moment the capacity has reached its maximum of 3000 tons and now we are in an expansion phase which will be completed by year end.

Thereafter we will be able to manufacture 8000 tons a month,” Mr Asif Qasim explains. “We currently employ 450 people and the main area is 36,000 square metres, with 10,000 under roof. With our expansion, our employment will go up to 650 people and the main www.southafricamag.com 61

Unica Steel focus manufacturing

area will be nearly 100,000 square metres with around 17,000 to 18,000 square metres under roof.”

He says that Unica currently runs an induction furnace with six-ton capacity and a cycle time of under two hours. “With our new furnace, which will be installed, that will dramatically improve. We will have 20 tons per cycle.”

Elaborating on the manufacturing process, Asif Qasim continues: “After we have made the billets we heat them at around 1100 °C so that they become soft and from there it goes into the rolling mill where it is rolled into mild steel square bars, mild steel flat bars and mild steel angle iron. The products that we’re rolling at the moment are 25 x 25 x 2 mm angles to 40 x 40 x 5 mm angles. In the future we’ll be able to manufacture up to 60 x 60 x 6 because

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Marshal Manufacturing & Exports Private Limited

The concept originates from China and India.

Basically we are making steel from steel

Marshal Manufacturing & Exports Private Limited is a multi faceted company, which started off as a trading house and has gradually consolidated its business by getting into manufacturing. Today MMEPL, operates across various industry verticals from steel, cement to agriculture, power and earth moving equipment.

MMEPL has also been aggressively executing turnkey projects in Middle East and Africa for sponge iron plants, rolling mills, clinker grinding units, ball mills, oil expellers, solvent extraction plants and refining plants since 1998. Over the years MMEPL has earned itself a reputation of being one of the very few companies in its field that delivers with honest, clear and consistent business practices.

Unica Iron & Steel has been sourcing raw materials and consumables from MMEPL since 2008. Mr Ashish Kampani, the Global Business Head of MMEPL says, “Unica and we share a long term relationship. It has developed successfully based on our mutual understanding of achieving best practice and sustainable competitive advantage.”

the new mill will be bigger. Our range of products will then increase also. We’ll be able to go up to a 100 millimetre flat bar.”

All products are currently manufactured to SANS 1431 250 WA, a mild steel commercial grade. Other grades are available on request he says.

The process is labour intensive – using workers rather than processing machinery – and the company believes in multi-skilling.

Asif Qasim says the new investment will create jobs.

“We had budgeted the expansion at R45 million but we’re expecting by the time it is completed in February next year it will be up to R60 million for this build. It has been financed part by us (50 percent) and our investment has been matched by the IDC (the other 50 percent). They’re backing us as we are proven investors and also because of steel consumption here in South Africa.

The country consumes five million tonnes of steel every year. Unica production is at the moment yearly is 20,000 tons. With this

expansion, it will go up to a maximum of 110,000 tons. The consumption of South Africa yearly is five million tons and the most I can produce is 110,000 tons. So obviously the demand is there and we could produce more if we had room. There’s a lot of capacity still to fill and this will create a lot of jobs.” www.southafricamag.com 63

Unica Steel focus manufacturing

Unica has a strong marketing division he explains, selling products to all the biggest consumers in the domestic market – the likes of Pro Roof and Durban’s Macdonald Steel. “These are big names in the market.

Each one of them has very strong retail branches – some have up to 20 branches - and each one can sell around 3,000 tons of steel a month.

My production per month will be 9,000 tons divided between eight or more customers so I do not see any problem selling it. In fact we are always under pressure and behind our orders.”

Asif Qasim says when the plant first opened, Unica had to go to India to find skilled staff as it was a new concept locally and there weren’t the skills.

Money was invested into training and local people now have the knowledge to play a

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role in the expansion.

“In South Africa we actually have a lack of skills and you must remember the plant we have is the first of its kind in the country.

Steel banks are here but they are huge plants, more automated, but our plant is more manual and labour intensive. This is a concept from India and China. We are the first of our kind here. When we first started up we had a lot of trouble being able to train people so we went to the government and asked them if we could bring in skilled labour from India to train the local people and they allowed me to bring in 45 people. Those 45 expats are staying here in South Africa and are residents. They are taking care of the old plant and under them about 405 other people are working in the mill. We have trained

Alert Steel Established over 30 years ago, AltX listed Alert Steel provides various steel, steel-related products and services to the building industry. With 18 operations in South Africa and a growing list of AlertExpress containers, the group is well equipped to meet the needs of its growing customer base.

There’s a lot of capacity still to fill and this will create a lot of jobs

about 100 local workers so when our capacity increases obviously we’ll spread these guys around to different departments and enhance their skills further. We have got a fully operational skill development department, which takes care of each and every person. They’re monitoring people and taking care of them, helping them to work in the industry.

With our expansion we’ll employ more people. There will be more manual labour.”

Unica has a policy of creating employment for as many people as it can and we wish them luck with the expansion.

To learn more visit www.unica.co.za END . www.southafricamag.com 65

Motoring ahead

South Africa Magazine chats with Jaguar Land Rover South Africa’s operations director Brian Hastie and managing director Kevin Flynn who tell us more about some exciting opportunities at the company in this Q&A.

By Ian Armitage

S

outh Africa’s auto industry continues to grow boosted by low interest rates, improved vehicle affordability, new high technology model introductions, easier access for consumers to vehicle finance and pent-up demand. It is fair to say then that times are reasonably good for Jaguar Land Rover (JLR). Land Rover is a brand loved by South African consumers, drawn in by its style and reputation. Sales are up -- it is one of the most profitable car companies in SA -- and the company is expanding its staff complement, eager to grow the business off the back of several successful vehicle launches. Operations Director Brian Hastie (BH) and Managing Director Kevin Flynn (KF) tell us more.

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How is the business performing?

BH: 2011 was a successful year for Jaguar Land Rover South Africa. It was aided by improving market conditions and consumer confidence and supported by marketing some of the best products available in our respective segments.

We have focused on customer experience to support the premium Land Rover, Range Rover and Jaguar products that we sell. The South African premium market is a demanding one where luxury is evolving into more than just leather and quality finishes, but the time enjoyed in our brands’ environments. Luxury in an increasingly demanding world is having time to relax – and we have been able to

Jaguar Land Rover focus manufacturing

offer that to our customers, whether enjoyed behind the wheel of any of our products or in our dealerships.

Last year you launched the all-new Range Rover Evoque. How has that been received?

BH: Range Rover Evoque has been an unprecedented success. The South African market has been no exception to the product’s global acclaim. Demand remains strong long after launch and we are unable to supply the demand, with customers content to wait just a little for the satisfaction of owning the Evoque. The broader media has shared this sentiment and it is reassuring to appreciate their realisation that more than just a styling statement, the Range Rover Evoque remains a capable Land Rover.

So what’s next?

BH: Jaguar Land Rover is nearing the completion of a major revamp to our head office necessitated by literally doubling our staff complement. This has been borne out of the necessity to grow to meet current market demands, but also to prepare ourselves for the future growth of our brands into even more market segments going forward and we are capitalising on our good fortunes now to prepare for the future.

That’s great. How would you sum up the current state of the industry then?

BH: The South African new vehicle market is seeing strong recovery, admittedly from a low base. But with growth of almost 20 percent, we are confident that the market is returning to realistic and sustainable levels.

Are there any challenges though?

BH: There are. JLR’s biggest challenge in the SA market is a macroeconomic one in that emerging from the recession SA consumers are “buying-down” into lower vehicle segments than they have traditionally been used to. Volume manufacturers are experiencing good growth.

And while the premium market in SA is unusually strong with a bigger share of the overall market than one might expect, this trend is putting pressure on niche premium segment sales. This knocks-on to all our products from Land Rover, Range Rover and Jaguar, forcing us to challenge ourselves to become more innovative in the way we market, and by maintaining our levels of service and customer experience in order to retain the market we’ve already captured.

Are you excited for the future?

BH: Yes. We have made major human capital investment this year by expanding our head-office structures to support our dealer network and growing market demand.

This extends to customer experience, marketing, sales, operations and technical, but importantly training as well. Our Jaguar Land Rover Academy is just one sign of our investment in skills to support all our initiatives.

Equally, an activity like the Land Rover Experience, our off-road driving skills programme, is unique in the SA market to have internationally accredited driver trainers.

Kevin, over to you. Obviously plans are afoot to increase staff numbers. Is it a challenge finding the right people? And what approach do you take to training?

KF: Jaguar Land Rover South Africa takes training particularly seriously. Our people are our biggest asset and our key differentiator in the premium car market is how we service our customers. All the premium car players in the market make fantastic products – but it is how our customers engage with our brands that will keep them loyal or attract and convert them to our brands. After all, we are www.southafricamag.com 67

Jaguar Landrover focus manufacturing

Motorvia Motorvia’s long professional relationship with Land Rover stems from the mid 80’s as a proud logistics and warehousing provider.

Motorvia is contracted to various OEM’s and vehicle manufacturers for the storage and distribution of their vehicles throughout Southern Africa totalling approximately 170,000 domestic units annually.

As the leading automobile transporter in South Africa, Motorvia sets the trend by using state of the art vehicle carriers and warehousing facilities.

selling luxury cars that bring with them a certain level of expectation from the evolving luxury car buyer.

We have our own Training Academy at our head office in Pretoria that upskills technical, sales and management staff across all sectors of our business, be they at head office or in our dealer network. Similar thinking globally drives JLR and many of our staff engages with the UK training facilities to understand our sophisticated and innovative products.

An example of our approach to training is evidenced by the Land Rover Experience – our off-road driving instructors are the only in South Africa who are internationally accredited.

We are equally obsessed with transferring these expertise not only to our Land Rover owners, but all 4x4 motorists as witnessed by our current SUV training campaign.

Are you a force to be reckoned with in the SA motor industry?

KF: Yes we are. But few actually realise it. By virtue of our volumes of premium cars at a 68

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price point, we are one of the most profitable motor companies in the country, rather than the perception that we are merely a distributor of imported niche products.

We are blessed with some of the greatest products in their respective market segments currently available. And the increasing demand for our vehicles means we have had to grow with that market: our head office operations are literally doubling in size and capacity as we build a team of passionate Jaguar and Land Rover enthusiasts that live and breathe our brands every day.

Brian talked a lot about the customer experience. Would you care to elaborate?

KF: We have a particular focus on customer experience and a department dedicated to ensuring their satisfaction with our products, our dealers and every interaction they experience with their vehicles. We are small enough to be able to engage with customers almost individually, supported by marketing that is as innovative as our brands.

Land Rover is an enabling brand – it’s not just a luxury SUV: Land Rovers allow a certain lifestyle; they enable their owners to explore the great outdoors, to experience destinations.

Jaguar is a brilliant niche in the premium sedan and sports car segments, offering beautiful styling and innovative technology that appeals to a growing number of discerning buyers intent on distinguishing themselves from the standard premium set.

Add to that the traditional appeal of two iconic British brands and the fact that they complement each other so well in terms of lifestyle and ownership lifecycles, and a Jaguar or Land Rover can accommodate every luxury vehicle buyer demands.

Digital marketing channels allow us incredible flexibility and real-time learning about customer demands and perceptions and we leverage those masterfully and are able to evolve and change with them.

Carefully selected niche publications provide

traditional awareness support and outdoor executions are driven by a fantastic source of global media and marketing assets.

Our best results come from getting potential customers into our vehicles – once they experience them, they are more easily convinced of our proposition. Existing customers are our best ambassadors.

Like Brian, are you excited for the future?

KF: I am. Our head office capacity is literally doubling, focusing on systems and processes to improve efficiencies and cope with the increasing demand for our products. Our focus will extend to our dealer capacity and representation while remaining focused on sustaining viable dealer environments that can provide impeccable service to our customers.

To learn more about JLR and to view its extensive range of world-class motor vehicles visit www.landrover.co.za and www.jaguar.co.za END www.southafricamag.com 69

fantastic P lastic

SA Leisure (Pty) Ltd designs, produces and sells plastic consumer products.

By Ian Armitage

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SA Leisure focus MANUFACTURING

F

ounded in 1989 by chairman David Jaffit, SA Leisure (Pty) Ltd designs, produces and sells an extensive range of plastic outdoor furniture, gardening, do-it-yourself, houseware and home/office storage products.

It pretty much has it all - tables, chairs, loungers, umbrella stands, trunks and tubs, cupboards, shelving, hoses, hose reels, refuse bins, tool storage solutions, cooler boxes, combo sets, jugs, ice bricks, toolboxes, storage boxes, organisers, utility and fishing storage products and bins.

“We are based in Rosebank and operate as a subsidiary of RMB Corvest

Group,” the company tells South Africa Magazine. “We are currently the largest consumer goods injection moulding firm in South Africa with in excess of 50 Injection machines ranging from 105 tons to 3100 tons.”

It has three large blow-moulding machines as well as a division that specialises in the compounding of plastic materials.

“We specialise in the manufacture of plastic consumer products and we convert over 10,000 tons of various plastic raw materials per annum.”

SA Leisure employs 450 permanent wage and salary staff.

It produces over one million chairs per annum.

We are currently the largest consumer goods injection moulding firm in South Africa

www.southafricamag.com 71

And it is an eco-friendly business.

“Our plastic is eco-friendly. We design and produce a wide range of products using only virgin and quality recycled eco friendly plastic. All products manufactured by SA Leisure (Pty) Ltd may be recycled.

“We design and produce a wide range of products to help organise your lives.”

You might be familiar with brands such as Big Jim, Buddi and Miss Molly.

All of SA Leisure’s products are “world class”, “competitive” and “innovative”.

“We have dominated the outdoor furniture category. All our outdoor patio furniture is suitable for outdoor use. Our outdoor range of products are fashionable, light-weight and easy to assemble, manufactured from high

SA Leisure operates from the following locations: Company Head Office and Showroom in Johannesburg operating in 750sqm of covered space.

Two factory locations in Natal operating in 20,000sqm of covered space.

Two warehouse locations in Natal operating in 9000sqm of covered space.

A warehouse in Isando Gauteng operating in 3000sqm of covered space.

A warehouse in Cape Town operating in 1200sqm of covered space. impact polypropylene and are UV protected.

Our range is also well known for comprising a unique Olympic budget range produced from quality recycled polypropylene.”

SA Leisure’s expertise in blow-moulding has enabled it to remain one of the most competitive suppliers in the cooler box manufacturing category, while its gardening category “has a comprehensive range of refuse bins, hosepipes and key garden organisation accessories”.

“Our main gardening forte has been embedded in our unique hosepipe engineering which has proved to blossom over many years with distinctive no kink, no twist, no tangle features and UV protected coating,” the company says.

Its DIY range includes toolboxes and storage solutions designed for optimum functionality and practical use.

“Our range hosts a diversity of innovative products, injection moulding manufactured from high impact polypropylene virgin material to guarantee quality products. We aim to remain competitive and economical while keeping up with creative modern trends and fashions,” the company adds.

It has a range of toys/kiddies storage – a spin-off from its main storage category.

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SA Leisure focus MANUFACTURING

“With aesthetic colour appeal integrated with functionality our products boast of practicality that every home needs.

“Our Big Jim bike is proudly based on classic original motorcycle design produced from state of the art blow moulding machinery with only high impact quality virgin material being used.”

Its Buddi range is a leader in the office space.

“Our unique Buddi range of products has been designed around a typical office environment enabling a free flow of documents through the system. This Buddi system has been carefully designed around primary office function and practicality. With new product revamps and engineering, the Buddi range is set to hit the market confidently. Our office products are manufactured with high impact injection moulding machinery using virgin

“Always good service, quality at the right price.”

Plastic component manufacturer, our services include: · Injectionmoulding of furniture inserts, caps and manufacturing components. · Blowmoulding of medical bottles, button tubes and Ice bricks · Plastisol Dipmoulding of protection caps, handgrips, cable glands, wire connectors, bellows, towhitch covers, etc We work all over South Africa with a variety of industries including: · Automotive & appliance · Engineering & Furniture · Medical & Packaging · Beverage, cosmetic and paper We have considerable experience with materials such as ABS, Polypropylene, Polyethylene to more complex ones like Nylon, Eva and PVC. We are proud to be approved suppliers to among others: SA Leisure, Whirlpool SA, SA Breweries, Defy SA, Brits Automotive systems, Sappi Fine Paper, Bell Equipment and many more.

Old Mill Road 22/24 Tongaat, 4400 T: (0027) 32 9448 499 F: (0027) 86 6843 135 KZN South Africa

E: abc-plas@iafrica.com W: www.abcplastics.co.za

polystyrene as a raw material and are all 100 percent recyclable.”

It is a strong offering.

“Since our inception in 1989, our company has measured continuous growth patterns in existing and emerging market share. SA Leisure has now become one of the largest producers of plastic consumer products in South Africa,” the company concludes. “We aim to continue evolving with these proud achievements and make it our business to produce functional, practical and desirable products to suit the unique needs and requirements of our customers for many years to come.”

SA Leisure’s products are available through all the major retail chains.

For more information visit www.saleisure.co.za. END

IT’S A

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Cadbury focus FOOD & AGRICULTURE

O

Cadbury Dairy Milk is a South African fairtrade pioneer. South Africa Magazine talks to Greg Banach, Kraft Foods South Africa’s category leader for chocolate, who says there are “numerous benefits” to buying Fairtrade products.

By Ian Armitage

ne billion people worldwide live in ‘extreme poverty’, while another 2.5 billion live in what’s defined as ‘poverty’.

Cocoa farmers are some of the world’s poorest people and many of them earn on average about $35 a year.

They depend on selling their beans to pay for the essential things in life.

Many farmers don’t make enough money and can’t afford food, medicine, clean water or school for their children.

Fairtrade is a marketbased approach designed to change that and promote sustainability.

It is an initiative about better prices, empowerment, decent working conditions, local sustainability and fair terms of trade for farmers and workers in the developing world.

Not sure what Fairtrade is? Well have you ever bought a Fairtrade product before? Do you know what it means to buy a Fairtrade product? If your answer to any or all of these questions is no, and we’re guessing it is, you’re not alone. Many consumers are unaware of the existence of fair trade products, let alone where to buy them or the benefits of supporting the fair trade industry. www.southafricamag.com 75

Cadbury focus food & agriculture

Business Connexion Business Connexion has been proud to support the operations of Kraft Foods in South Africa for the past eight years, ensuring its production is as smooth and reliable as its chocolate.

Since Cadbury was purchased by Kraft Foods our relationship has grown to see us provide infrastructure support services to Kraft throughout Africa.

Kraft Foods is now reorganising its manufacturing plants to meet growing demand, by producing different snacks in different countries and introducing a multiple shift environment. Managing this process correctly and efficiently is a complex task, and Business Connexion is well placed to support Kraft as it expands its operations and seeks energy-saving initiatives.

As a world-class African services company, Business Connexion understands Kraft’s challenges and has the Connective Intelligence to be the technology partner that underpins its business.

You know the old adage ‘Give a man a fish, he eats for a day. Teach a man to fish, he eats for a lifetime?’

That pretty much sums up Fairtrade: to teach producers and developing communities to become self-sufficient rather than put a short-term financial band-aid on poverty.

“Cocoa farmers are self sufficient.

The challenge is empowering lives and communities so that they continue to farm and produce cocoa?” says Greg Banach, Kraft Foods South Africa’s category leader for chocolate.

Kraft Foods is something of a pioneer in this respect and its Cadbury Dairy Milk chocolate plain slabs became the first Fairtrade certified confectionery product in South Africa.

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Kraft Foods are very proud to be the first major business to achieve Fairtrade certification in this country

Business Connexion 789 16th Road Randjespark Midrand Tel: +27 (0) 11 266-5111 Industrial Solutions Contact: Frans van Eeden Tel: + 27 (0) 11 266 5370

Industrial Solutions In today’s globally competitive world, every industrial company needs information technology systems that will not let them down. A missed order, a delay in production or a glitch in quality is an opportunity for rivals to steal your business. Manufacturing companies can only operate optimally with an IT environment where production, inventory, quality and maintenance are actively managed from the factory floor and supported by robust, reliable and well-designed systems. No downtime is acceptable, since the slightest pause could cause months of delay in production.

Business Connexion supplies both those solutions with its MES and High Availability Systems (HAS) that deliver round-the-clock reliability, short mean time to respond and repair. MES technologies manage the Production, Maintenance, Quality and Inventory functions; to ensure the correct products are made using the correct method, capacity is allocated so the entire facility is used optimally, schedules are controlled for each machine, and data is collected to create useful knowledge, not just figures.

It’s also crucial that the technologies are designed to fit the manufacturing processes, and not for industrial processes to be compromised to match the IT systems. Yet too often, vendors supply industrial solutions that require the customer to suit the systems.

The performance of individual machines, departments and the entire plant is measured accurately to plan and allocate resources correctly, and results can be monitored on an executive dashboard or fed to mobile devices for on-the-go accountability.

JSE-listed Business Connexion has built its reputation on understanding that industrial environments cannot be dictated to by the IT infrastructure. Customers need robust, rugged and highly reliable solutions on the shop floor, and Manufacturing Execution Systems (MES) that bridge the gap between the factory and the boardroom.

Industrial Solutions from Business Connexion are product and vendor agnostic and will design and implement an MES solution to meet the specific requirements of the client based on the current site installed systems, bringing MES and HAS into the real world of competitive, industrial manufacturing.

“Kraft Foods are very proud to be the first major business to achieve Fairtrade certification in this country,” says Banach. “For us to go Fairtrade in South Africa is a major breakthrough for the whole of the Fairtrade movement in Africa. We have an all-African cocoa supply chain; it is a totally African affair.

“Why is Fairtrade so important?” he asks. “Well, it helps ensure a sustainable supply of top quality cocoa and keeps the country’s millions of chocoholics happy at the same time. The Fairtrade certification guarantees that Africa’s cocoa producers receive at least world market price per ton of cocoa beans.

Producers also receive a compulsory investment into economic, social or environmental projects that will benefit their communities.

“South African consumers should look out for the distinctive blue, black and green Fairtrade logo on packaging.

It is being carried on Cadbury plain Dairy Milk slabs and bars in the 20g, 35g, 90g, 145g and 180g sizes.”

Kraft Foods SA cocoa comes from West Africa and it takes a whole year’s crop from one tree to make 1lb (454g) of cocoa. Each tree only produces around 30 pods each year.

Each pod contains 30-40 seeds/ cocoa beans.

Fairtrade Africa represents over 500,000 African small-scale producers and farm workers supplying the international Fairtrade market in 23 countries. Until 2008, South Africa only exported Fairtrade products to Northern countries, mostly in Europe, but due to a growing demand for locally produced sustainable products, Fairtrade decided to offer its products directly 78

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The Fairtrade certification guarantees that Africa’s cocoa producers receive at least world market price per ton of cocoa beans

Cadbury focus FOOD & AGRICULTURE

to African consumers, starting in South Africa. There are now several local wineries and coffee roasters selling Fairtrade labelled brands in the country and imported coffee, tea and sugar is available. Fairtrade products are available in Pick n Pay’s, Ultra Liquor stores, Spars, Shoprite Checkers and coffee shops.

“We have achieved a lot but it could be better,” Banach says. “Unfortunately Fairtrade still has quite a low level of awareness in SA. There’s an awareness of three percent. It’s not something that the market demands but we’re consciously doing it because it’s the right thing to do.

We hope that by going Fairtrade it we’ll raise awareness of sustainability and hopefully more and more consumers will get knowledgeable and start to buy and shop with a conscious.”

One initiative Cadbury Dairy Milk is running to boost awareness is Faircrows.

“We launched Faircrows off the back of the successful launch of Fairtrade-certified slabs,” Banach says.

“Faircrows is an interactive campaign which encourages shoppers to buy with their hearts and live the Fairtrade lifestyle. It is a symbol of how the brand protects and empowers small-scale cocoa farmers. Just as a scarecrow protects farmers’ crops, the iconic Faircrow symbolises the protection and empowerment that Fairtrade certification provides for our producers.”

The Faircrows campaign is an exciting and interactive drive which encourages consumers to look out for the Fairtrade logo, to buy Fairtrade, and by doing so, contribute to the empowerment of small scale farmers.

“It’s about getting people to understand it in an approachable way,” Banach adds. “Faircrows is a really great visual arc that can bring people in and help them learn about Fairtrade. It helps consumers understand what Fairtrade is, tells the story of cocoa from West Africa, educates consumers and hopefully it’ll get them to pledge to buy with their heart as well as their heads.

Hopefully consumers will be aware that this is much more than a sticker on a label and understand what it means and the good that it can do.

I think if you give people a great experience instead of telling them in a sort of dry way then people will get the message and want to engage with the Fairtrade brand.”

Fairtrade is indeed much more than a sticker on a label. To learn more visit www.cadbury.co.za or www.faircrows.co.za. END www.southafricamag.com 79

DIVERSIFICATION KEEPS

Eyethu NICELY AFLOAT

South Africa Magazine profiles Pioneer Fishing’s east coast operation, Eyethu.

By Ian Armitage

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Eyethu focus food & agriculture

E

yethu is a trawling and fish processing business that produces a wide range of fish products for local and export markets.

Based in Port Elizabeth for the past 20 years, and part of the Pioneer Fishing Group, the company is noted for its excellent pelagic catches and also for the high quality of its white fish catches, mainly hake.

Its infrastructure includes a fishing fleet, processing factories and engineering services. Pioneer Fishing markets its products.

“Pioneer Fishing Ltd exports products produced by the East Coast operation, Eyethu,” says general manager Tony Edmeades.

Mr Edmeades joined Eyethu just a few months ago, brought in to help improve and expand its operations.

“I started with Pioneer Fishing last year, mainly focusing on their squid operations,” he says, explaining that he was previously with Port Elizabeth-based Calamari Fishing (part of the Oceania Group) prior to joining Pioneer. “I have a wealth of industry experience.”

Eyethu has a fleet of four vessels.

Products include squid, bait, cutlets as well as frozen and fresh hake, kingklip and sole.

“We own several fishing vessels and quite a significant processing facility - in fact it’s the only EU approved fish processing facility factory in Port Elizabeth. We have Zolani, a pelagic fishing vessel, which targets pilchard off Port Elizabeth and the Mossel Bay coastline. We sell that product into the bait market. That’s mostly exports. We do obviously supply the local market, but the majority of our sales are export sales.

“We then have Oupa Joewie. That catches inshore trawl fish, mainly hake and sole, along the southern coast of Africa. The fish are placed on ice and delivered freshly to the Eyethu factory.

“Then we’ve got the Marretje, which is the flagship vessel. It mainly uses the bottom trawl method to catch deep-sea hake and has recently converted to the mid-water trawl fishing method in order to also catch horse mackerel, which we aim to sell into North Africa. We’re having a few teething problems at the moment but we’re experimenting with different types of trawl and we’ll get it right.

“Our final vessel is Zuiderzee.”

Zuiderzee is the Pioneer Fishing Group’s only long line fishing vessel.

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Edmeades says it was converted from an inshore trawler into a long line fishing vessel to catch hake that was primarily for the export market in Europe and specifically Spain.

“That is our only long line vessel,” he says.

A very big part of Eyethu’s market once lied in export with some 60 percent of its pilchard catch normally going overseas and about 40 percent of its hake.

However, with reduced demand from overseas since the financial crisis, that proportion is changing Edmeades says.

“Obviously the financial crisis in Europe has affected us. But what keeps us quite nicely afloat is our emphasis mainly on quality rather than mere volume. We concentrate mainly on fish of high quality and this is appreciated by our customers.”

He says the weakness in the eurozone has forced Eyethu to change.

“Obliviously the Spanish are catching their own fish and of course the weakness in the eurozone has seen prices collapse. As a matter of fact we can now get better margins by selling into the local market. That’s why we’ve adapted some of our vessels and changed the way we process some of the fish.

Our motto is that ‘anything fresher is still swimming’ and that is the quality we deliver.

But like I said we are seeing that local prices are actually better than those we can get in Spain at the moment.”

Importantly, it isn’t just about good prices - Africa is more than willing to fill the void, Edmeades says. “We’ve been developing our local market and when the Spanish market comes back we’ll have to reassess things but I’m not expecting that in the near future. What we are doing is looking to supply more fish into Africa, targeting coastal communities where there is strong demand for fish. I think there has been a real awakening in Africa and also in South Africa, where people are eating more fish. In the past we were focused heavily 82

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on Europe and maybe the 2008 crisis has forced us to open our eyes and rethink our approach.”

Eyethu has been working to get options, diversify its offering and strengthen its operations. In a way the loss of business in Europe has been a blessing. “Anything that forces you to look at your market and expand your market is a good thing – that is what the euro crisis has been. It has forced us to restructure and make a go of it in Africa and South Africa. When the Spanish market comes back we’ll be in a fantastic position. We won’t be reliant on one market.

If a certain country or client can’t take the fish one week it wont matter as we’ll have others lined up to buy it.”

All of Eyethu’s ships are equipped with all the latest equipment including radar and even net monitors that enable them to tell what type of fish are in their nets at any given time.

Its operations are EU and NRCS, and also PPECB approved.

Eyethu focus food & agriculture

It is this flexibility that Edmeades sees as vital to the firm’s future success.

He says Eyethu has a bright future.

“A lot of fishing has a seasonality aspect to it but we are flexible in our operations and take in contract fish when we fill our quotas to keep the processing plant full. Of course we obviously do all the processing for squid on behalf of Pioneer Fishing East Coast and they’ve grown their squid supply base and we’re processing that. But all the fishing has a seasonality factor

and you have to remember you are employing people permanently and you need to diversify to ensure a consistent workflow. You want consistent volumes going through the factory. “ In the fishing industry though there is a saying that 40 percent is nature and God’s will. And no matter how well you plan, nature can spring a surprise. “You are at the mercy of nature so to fish successfully and show a profit takes the right equipment and many years of experience.”

Eyethu Fishing has a policy of creating

employment for as many people as it can. It is labour intensive, using workers rather than processing machinery, and the company believes in multi-skilling.

Eyethu is also active in the field of social responsibility and is focused on sustainability.

“South African consumers should check out our fresh fish shop selling direct to the public - if the fish were any fresher it would still be swimming!”

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

END

Shaya THE HOME OF

Maize product producer Brenner Mills is one of South Africa’s leading branded food companies.

By Ian Armitage

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Brenner Mills focus food & agriculture

M

aize is consumed daily by millions of South Africans as an integral part of their diet and Hammanskraal-based Brenner Mills has been milling and producing it for over 70 years.

The firm is a leading player in the market and Shaya is famous across subSaharan Africa where maize is a staple for an estimated 50 percent of the population.

“We are one of the leaders in the country and are involved in the maize milling industry, the manufacturing of animal feeds and the mixing and packaging of grain related products,” marketing manager Eddie Ueckermann told a South Africa Magazine researcher earlier this month. “Our brands are Shaya, Cup Final, Magic Rice and Brennco.”

Brenner operates out of six factories - three in Limpopo and two in Gauteng.

Outsourced distribution centres are spread over the rest of the country.

The customer base covers a wide range of national retail chain stores, national wholesale chain stores, private wholesalers, private retailers, spaza stores as well as corner cafes.

“Maize meal still accounts for the majority of the group’s revenue,” added Ueckermann.

“We manufacture quality products and provide excellence in service.”

The maize mills in Makhado, Bela Bela and Hammanskraal are important suppliers of maize meal and maizerelated products in their respective regions.

Brennco Brands, with its main factory based in Hammanskraal, supplies a variety of products to the national retail and wholesale chain stores as well as to a range of smaller privatelyowned outlets.

The main products produced by Brennco Brands are a range of dried vegetables, an excellent range of birdseeds and a number of house brands for the retail market, Ueckermann said.

“Maize meal Brands such as Shaya and Cup Final are market leaders and the brand name Brennco has become synonymous with bird seed in the formal retail sector.

“We’ve also started packing rice and Magic Rice is now a valued brand in the Limpopo, Northern Province and Mpumalanga regions.”

Brennco Feeds situated in Makhado produces a wide range of balanced chicken, game, pig, dog and ruminant feeds.

To ensure that the highest standards of manufacturing are adhered to, the facilities

We make use of sophisticated tools and information systems to ensure we remain at the forefront of our industry

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Brenner Mills focus food & agriculture

Wolvaardt Inc

are audited by outside auditors on a regular basis.

“As of May 23, 2007, we’ve operated as a subsidiary of KAP International,” Ueckermann added.

“We have around 550 staff.”

Brenner operates under the leadership of Eric Goldblum and Steven Brenner, both of whom have several decades’ worth of experience (Eric joined Brenner in 1972 while Steven joined in 1989).

“We have a very experienced team and efficient manufacturing operation. We have world class technology and undergo regular audits to ensure we maintain the very best standards.

“We make use of sophisticated tools and information systems to ensure we remain at the forefront of our industry.”

According to Ueckermann, Brenner is looking to expand and will “better utilise” existing plant and equipment to grow the business.

E-commerce is an area of expansion.

“We are looking at ways to better utilise technology in that respect,” he admitted.

To learn more visit www.brennermills.co.za. END 86

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In 2005 Brenner Mills approached us to assist the Company with various long outstanding debt collections. We have since then expanded our service offering to Brenner Mills to include among other, civil litigation, drafting of commercial contracts, notarial deeds and bond registrations.

Wolvaardt Inc is a dynamic firm which has found its niche in a highly competitive market through service excellence and an intensive, efficient approach to achieve desired results for Brenner Mills and our other clients.

Our key strengths are dedication to a beneficial result for our clients, personal approach to debtors and a team of skilled staff who work towards reaching the same goal.

We have had a successful year with collections on behalf of Brenner Mills and during the past 12 months we have managed to settle major cases. Several large outstanding collection matters have successfully concluded and at the same time we have managed to ensure a possible future business relationship between the parties.

We pride ourselves in being known for our thoroughness, efficiency and personal approach. Our drive for continuous improvement has ensured an increase in successful litigation matters.

The industry is highly competitive and this in turn puts pressure on margins. Our clients are facing increased defaults due to economic conditions and inflationary pressure. There are however opportunities in the commercial market and our unique approach to debt collection will assist us in taking advantage of those opportunities.

Our future goals are to continue our current growth path, continuously improve our procedures to stay in touch with market requirements and the ever changing legal landscape. We strive to set the benchmark for client service.

The key to our success is a passion for what we do, our dedicated employees and open line of communication between us and Brenner Mills. We have customised our approach to Brenner Mills’ requirements which has resulted in mutually beneficial results for all parties concerned.

Wolvaardt Incorporated is a dynamic firm providing legal services to an array of clients ranging from individuals to large corporate entities and strives to ensure professional legal services with a personal touch. We offer various legal services and we trust that we will be able to assist you with your individual needs, including:

DEBT COLLECTION Litigation: • Motor vehicle accident claims; • Damages Claims; • Matters relating to the areas of family -, contractual – and consumer law; • Medical Negligence.

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INSOLVENCY LAW: • Sequestrations • Liquidations • Rehabilitations • Restructuring and Refinancing • Business Rescues

Collections and settlement negotiations; Civil litigation; Legal Corporate Contracts; Bond registrations and other

Other services include: COMMERCIAL LAW Corporate Law: • Litigation and Dispute Resolutions • Negotiating and drafting of commercial contracts and agreements some of which, but not limited to: • Purchase and sale agreements; • Leases; • Articles of association of Companies; • Shareholders agreements; • Association Agreements; • Finance and Management Contracts; • Creation of Trusts.

Tel: (012) 362 3087 / 3734 / 2901

PROPERTY LAW: • Transfer of properties; • Personal bond registrations; • Specialised Conveyancing; • Rezoning and subdivision of land; FAMILY LAW: • Antenuptial contracts, both pre- and post nuptials; • Divorce matters and settlement negotiations and drawing up of the settlement agreements; • Maintenance disputes.

Fax: (012) 362 0160 / 086 676 8339

www.wolvaardtinc.co.za

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ANDRE VAN DER SPUY: 0763913878 E-mail: andre@cispak.co.za RUAN VERMEULEN: 0824473668 E-mail: ruan@cispak.co.za GAFFIE DU TOIT: 0828555117 E-mail: gaffie@cispak.co.za TEL: +27 (43) 7263393 E-mail: mwcispak@mweb.co.za

new Century A city for the

South Africa Magazine revisits Century City, Cape Town’s premier mixed use development.

By Ian Armitage

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Century City Focus property

C

The first completed building in Quayside when 52 of the 63 homes have been sold since its launch late last year

hris Blackshaw, CEO of the Century City Property Owners’ Association (CCPOA), has every reason to celebrate.

Why? Well have you been to Century City, the 250-hectare precinct that the CCPOA is responsible for running, lately?

Blackshaw says it has truly become a city within a city, with the built form more than tripling in the past eight years.

“I think it now stands at something like 850,000 square metres with total investment to date totalling about R17 billion,” he says proudly.

It is a remarkable feat. In 2004 when the Rabie Property Group acquired the remaining undeveloped land and associated rights, the built form on site had been just over 280,000 square metres.

“There has been a massive surge,” Blackshaw says.

The CCPOA essentially acts like a mini-municipality (a very good one at that) and is responsible for a host of things including public transport, access and traffic control, maintenance of all infrastructure and common areas, landscaping of all public areas, conservation and management of Intaka Island nature reserve (something we’ll talk about later) and storm water management.

Blackshaw says there are an estimated 50,000 people now living and/or working there.

“It’s safe to say Century City has bucked the trend,” he says. “Okay, so the pace of development since the dizzy heights of 2005/6 has slowed but it never stopped. And now things are really moving again. Property World – our official on-site residential www.southafricamag.com 89

Century City Focus property

sales office – says that levels are now getting back to those we saw in 2005. It is exciting.

“There’s been a tremendous rise in demand for residential units at Century City. I was in a meeting this morning with the developers (Rabie) and their latest residential development – Quayside – which they launched late last year, has already sold 52 of its 63 residential opportunities so they’re actually bringing forward a new neighbouring development – Quaynorth – which they will launch later this month.

“On the commercial side, things have never stopped at Century City either, but they did slow down,” he adds. “This sector is now also picking up. We’ve got Chevron relocating their regional head office here and their new 9,000 square metre (about 30,000 square feet) building is under construction. We’ve also got a number of other new office blocks being built as well as a new private school catering for 800 learners that’s been signed and sealed and they’ll be breaking ground later this month to open in January next year when the school year starts.”

A central location, wellmaintained infrastructure and a safe and secure environment are the major 90

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draw cards for those who have relocated to Century City.

“We have a 24/7 control centre with rapid response to deal with any emergency, around 100 CCTV cameras, 30 access control rooms and five response vehicles,” says Blackshaw. “There are 83 security officers who are deployed at key locations and undertake foot, bicycle and vehicle patrols. In addition we have two dedicated Metro Law Enforcement officers and, since the beginning of March this year, a full-time City Traffic Officer.”

Remarkably, Century City, which has development rights of 1.4 million square metres, is still growing.

There’s been a tremendous rise in demand for residential units at Century City

An architectural perspective of the Business Centre building due to come on stream in late 2013

To create an engineering masterpiece, who do you turn to?

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Transportationnnnnnnnnnnnnnnnnnnnnnnn nnnnnnnnnnnnnnnnnnnnbridges sssssssssroadssssssssssssssssssssssssssss ssssssssssservices Canalsssssssssssssss HHO Afnnsn nnn nnnsn nf nsn nnnn nnnnsnntinn nnn nnvnnvnnnnn snnh Cnnnsns Cnns. Wn nnn nn sSO 9001 nssnnnnnnn snnnnns snnsn fnn nnnnvnnnnn qsnnnns nnnjnsnn nn tinn, snnhnn bsnnnn nnn nn nsn snnnnnn’ nntinfnstinn.

Cape Town

Johannesburg +27 21 425 2870

East London www.hho.co.za

Mthatha

Century City Focus property

Artist perspectives of Quaynorth residential development

“A further 550,000 or so square metres remains to be developed and the CCPOA will continue to grow and expand its services in line with future development,” Blackshaw says. “I think what is exciting is that Century City has more than got that critical mass. So it’s not a question of ‘is it going to succeed?’ or ’who’s it competing with?’ anymore.

The major infrastructure is in place and is now starting to mature so in a sense now it’s really going forward.

We’re in a fortunate position as we have already got the building development 92

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I think what is exciting is that Century City has more than got that critical mass

rights for 1.4 million bulk square metres so in terms of planning approvals, there’s no applications needed for developments rights – one has a basket of rights and one draws down from that. So in terms of going forward, Century City is flexible enough to accommodate a range of people who want to come here. For example – if you’re a large insurance company looking to have your national or regional offices here and require a 40000 square metre bulk building – we can accommodate you on the site without having to go

HHO AFRICA When the developers of Century City needed civil engineering consultants with whom to partner to realise the potential of the site, HHO Africa were an obvious choice. We have the full range of civil engineering expertise required and have a proven track record. Since the establishment of the firm in 1926, we have prided ourselves in the quality our work, technical excellence and the ability to find optimal solutions to engineering challenges.

and water-borne sanitation. HHO Africa have extensive experience in the planning, design and implementation of the essential components which make up any city.

At Century City we have had the privilege of working alongside a visionary client and being part of a professional team who are creating a mixed-use precinct that is very special. We value teamwork and good relations.

“Innovating infrastructure for life� is the phrase that perhaps best summarises the underlying philosophy at HHO Africa. We have assisted numerous satisfied clients to realise their development potential by the successful unlocking of parcels of land. We create innovative and appropriate solutions to the many technical challenges that land developers face and have forged strong relationships with clients and professionals within the built environment.

At Century City we have conceptualised major transportation infrastructure, ranging from integrated rapid transit systems and public transport interchanges to roads and non-motorised transport networks. HHO Africa are experienced in all facets of transportation and modeling.

Out of view is a facet of any city which is seldom seen.

Beneath the surface are important municipal services that supply all consumers in Century City with electricity, potable water, irrigation water, broadband infrastructure

We have also extended several kilometers of canals and waterways, which have created a very special environment, with opportunities for water sports and recreation. Perhaps more importantly, the waterbody receives stormwater, which it attenuates and cleans.

Century City Focus property

through a major and lengthy planning approval processes.

Within six-months you can be building and creating your new office. On the other side, if you’re a smaller person wanting a 100 square metre office, we can accommodate that too. The possibilities are endless and it is really exciting because as the economy improves and as the demand comes, we can amend and adjust our offering to meet the different needs of people who are looking for a place to stay and to work.”

Blackshaw says building work has started on a new R85 million Business Centre which will provide furnished serviced offices to businesses of various sizes. “We are at the heart of the greater Cape Town metropole and the city within a city combines office, residential, retail and leisure opportunities on a scale unlike anything else in South Africa or indeed the African continent. This is an integrated environment that is perfectly tailored to the leisure, work and lifestyle demands of today’s society. When Century City is fully developed it will be almost as large as the Cape Town CBD. It is already home to numerous multi-nationals including IBM, Liberty Life, Aurecon, PriceWaterhouseCoopers, Mazars and Vodacom, to name just a few.”

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Gorrie & Findlay

We are at the heart of the greater Cape Town metropole and the city combines office, residential, retail and leisure opportunities

Gorrie & Findlay was established in 1968 and has been a member of the Masters Builders Association from 1972, specialising in turnkey projects and dealing directly with their clients.

Recently, in Century City, six office blocks were constructed for Growth Point Properties, which are all fully tenanted, as well as completing the Softline Regional Head Office.

Park Lane As a result of the recession there has been a complete lack of office space being developed within Century City, Cape Town’s prime office development.

It has been confidently predicted that, as a result of this lack of current development, there will be a critical shortage of office space over the next 12 to 24 months, during which time Gorrie & Findlay’s Park Lane development will become available for occupation.

A group of school children leaving the recently completed Intaka Island Environmental Education Centre at Century City

park lane:

CENTURY CITY – CAPE TOWN

A-GRADE OFFICE BUILDING FOR SALE OR TO LET P O S I T I O N · P O S I T I O N · P O S I T I O N

T

his development consists of an attractive, architecturally designed 3344 bulk m² (which could be increased to 3754 m²) A-Grade office building, which includes:

● 98 basement parking bays ● 5 ground floor open parking bays

● 23 off-street visitors parking bays and storage areas ● Large ground floor terrace/piazza area, with first floor balconies overlooking this area

Q U A L I T Y · Q U A L I T Y · Q U A L I T Y All located within the heart of Century City, with a restaurant and coffee shop also planned directly opposite this development The Park Lane plans have already been approved by the Century City Property Owners Association and the Site Development plans have been approved by the Blaauwberg Municipality which means construction can commence immediately.

Full drawings, elevations and a 3-D model can be viewed on our website www.gorrieandfindlay.co.za

(Click onto Park Lane under Current/Future Developments on the menu)

PHONE JAMES GORRIE 083 - 675 5365

Century City Focus property

Orbis Security Solutions In 2011, Orbis Security Solutions became part of the Securitas South Africa family. Securitas is the recognised global knowledge leader in the security industry, where knowledge is not only the cornerstone in the business philosophy, but it is also the key success component. We apply this philosophy to Century City through a multi -layered and multi-faceted approach to safety, security and crime prevention. With a zero tolerance approach to crime our highly trained personnel monitor the vast network of cameras, patrol, and with highly visible vehicles, ready to respond to any situation on a 24 hour basis.

An aerial photograph of the burgeoning Century City development in Cape Town

What South Africa Magazine likes most about Century City is its green lung which lies smack bang in the middle of the concrete jungle. It’s an ‘environmental oasis’ with some 16 hectares of wetland and bird sanctuary.

“It’s in the midst of all of the high-rise buildings and you’re hardly aware that it’s there,” says Blackshaw.

Intaka Island comprises eight hectares of seasonal pans and eight hectares of reconstructed wetlands which serve as a natural purification system for the eight kilometres of canals.

The reserve is rich in birdlife and indigenous flora.

“It has proven very successful with 140 bird species and 177 96

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indigenous plant species,” Blackshaw adds. “The Intaka Island reserve is something we are very proud of and in fact, last year, we opened an environmental education centre which has been very well received and successful.

In 2011 we had 77 school groups through the centre and over 13,000 visitors. We have partnerships with the Western Cape Education Department and a range of other organisations. Often environmental centres don’t have a lot of money and are housed in temporary buildings and run by organisations that mean very well, but don’t have the resources at their disposal.

What we managed to do with

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The Intaka Island reserve is something we are very proud of

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the Intaka Island Environmental Education Centre was to harness a professional team from land surveyors and architects and a range of other professionals who work here in Century City, to give of their time and energy pro bono. In addition many of the contractors and suppliers who work here have given us materials and we have received donations of over R2 million. The net result is that we have a very modern, very attractive and very functional environmental educational centre which is fully paid for. It’s been a really exciting project to see how our residential and business communities were prepared to put their hands in their pockets or do some hard work and help us realise this project.”

His aim going forward is to ensure Century City remains at the cutting edge and he is optimistically looking forward to further growth in the precinct.

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

END

www.southafricamag.com 97

Vukile’s a w a k e n i n g Property company Vukile is performing well in a difficult trading environment says CEO Laurence Rapp. It plans to grow by continuing to focus on its retail footprint and improving the quality of its office portfolio.

By Ian Armitage

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Vukile focus PROPERTY

V

ukile has one of South Africa’s most successful property portfolios.

The fund is exposed to retail centres in lower-income areas including the Randburg Square, Dobsonville Shopping Centre in Soweto, Phoenix Plaza in Durban, Daveyton and the Hillfox Power Centre in Roodepoort.

Chief executive Laurence Rapp says the fund is “poised for growth”.

SA landlords are generally struggling to fill vacant office, industrial and retail space and push through higher rentals on lease renewals.

Vukile has nevertheless managed to achieve rental growth across all three segments as reported recently in their annual results.

“The portfolio has performed well in a difficult trading environment in which the industry faced higher vacancies, escalating costs and an uncertain economic outlook,” says Rapp.

Highlights for the past year include an increase in the annual distribution of 6.1percent, the acquisition of an R1.5 billion portfolio from Sanlam and the raising of a corporate bond programme.

“We brought 20 properties in a package worth R1.5 billion and added some 25 percent to the size of the portfolio. It will provide a springboard for future growth. Our market capitalisation has grown and we are now a strong mid cap property fund with a market capitalisation of about R6.6 billion.

Our assets under management are at about R7.6 billion.”

www.southafricamag.com 99

Vukile focus PROPERTY

Rapp says the company plans to expand in rural and urban markets and it will expand some of its township malls.

“The malls aimed at the lower LSM market are achieving better trading densities and stronger growth in the number of monthly visitors than most urban malls.

“The performance of township malls has made it a red-hot sector to be active in.”

Vukile’s Daveyton Mall in the East Rand attracts 920,000 visitors a month.

Its mall in Dobsonville attracts 958,000 visitors a month.

“While we want the fund to be a balanced one in having exposure to retail, industrial and commercial, the focus will be on retail,” Rapp adds. “We have a strong pipeline of acquisitions in townships and rural areas – we want to increase our exposure in this market and there are a number of deals we are evaluating.

“An increase in disposable income and shifting spending patterns in lower-income segments of the market led us to take this view. We are in good shape. The market is not easy. But I think the fact we have over half of our assets in the retail sector has helped. Even in this difficult market we have been able to achieve positive rental reversions in all three sectors of the market — retail, offices and industrial. In the current soft market that is exceptional.”

Mr Rapp expects trading conditions to continue to remain challenging, especially on the office front. “To stress, we think our retail centres will continue to perform 100 www.southafricamag.com

WE’RE PROud TO PROvIdE A WIdE RANGE Of PROPERTY-RELATEd SERvIcES TO vukILE PROPERTY fuNd

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well. Overall the portfolio has performed admirably.

I do see a modest uptick in the industrial sector and, based on our experience over the past few months, it appears that the office sector may have bottomed out. The sector has faced some vacancy and re-letting challenges. SA landlords have generally struggled to fill vacant office space and push through higher rentals on lease renewals.

It is perhaps too early to predict a recovery but it is encouraging to note, looking at our results, vacancy levels across the portfolio are beginning to improve.”

Looking to the future, he stresses the Sanlam acquisition is the initial step of the company’s “new strategy” to be more “acquisitive and proactive” 102 www.southafricamag.com

and will also provide it with “further scope for growth”.

Vukile has accordingly decided to reduce its exposure to lower B grade CBD offices and replace them with higher quality offices in popular office nodes.

“We are confident of again delivering reasonable growth in distributions in the next year,” Rapp says. “We will certainly grow going forward.

“The word Vukile is a Zulu word which means ‘Awaken’ or ‘Arise’. It’s very much a proactive type of word and that’s the essence of the new energy in the company. We’ve changed our logo and we feel it symbolises the new energy and the new awakening. We have an aggressive growth strategy and we’re a lot more proactive in terms of looking for deal and opportunities. We’re going

We are confident of again delivering reasonable growth in distributions in the next year. We will certainly grow going forward

Vukile focus PROPERTY

FACT BOX Vukile declares healthy profit: Vukile declared and paid an early distribution of 70.5 cents per unit for the second half of the year in April 2012. In total, the distribution for the full year was 124.81 cents per unit representing growth of 6.1 percent for the full year. The full year’s distribution equals 99.8 percent of the profit available for distribution. The early distribution was done to avoid any dilution that would have resulted through the issue of linked units required to partially fund the R1.5 billion acquisition of a portfolio of 20 properties from Sanlam, which was concluded during April 2012.

to remain a diversified fund in three sectors of the market and we are going to specifically try to deepen our niche in lower-income areas, looking at rural and urban opportunities, as it’s a strategy that has worked well for us historically. We are exploring acquisitions of retail centres as well as joint venture development opportunities in the retail environment that would complement our existing portfolio. The focus will remain firmly on retail in emerging markets and we are keen to grow Vukile’s exposure to this market segment. However, that won’t preclude us from acquiring property assets that cater for higher income groups should the right opportunities present themselves.”

Moves to improve the quality of their office assets would continue, Rapp says.

“The next part of the strategy is looking to continually to upgrade our office and industrial portfolio through both acquiring better properties, upgrading existing properties that we already have and, at the same time, selling out of riskier properties in areas that we

think are no longer showing growth potential.”

He is determined to grow Vukile’s portfolio.

“The strategy is to grow our portfolio far more aggressively than before.

The Sanlam deal shows we are not afraid to put our money where our mouth is.”

To learn more visit www.vukile.co.za. END www.southafricamag.com 103

H ealth care

heroes Quality care, customer focus and an integrated offering define leading health care group Intercare, which CEO Dr Hendrik Hanekom says is well positioned to play its part in the transformation of the South Africa’s health care system.

By Ian Armitage

D

r Hendrik Hanekom is a visionary, determined to “transform” South Africa’s health care and “promote high standards” of professional health care management.

The 57-year-old, whose specialties include the design, development and administration of integrated health care delivery systems, is the co-founder and Chief Executive of the Intercare Group.

South Africa’s public health care sector is currently “over–burdened” Dr

104 www.southafricamag.com

Hanekom says, while demand is increasing for “a better standard of service delivery coupled with affordability and accessibility for a larger part of the population.”

Private health care needs some form of disruptive innovation and Intercare, he says, is “well positioned to play that role.”

“The Intercare Group specialises in the provision of a variety of health care services across the network of 15 medical and dental centres and two subacute and rehabilitation hospitals,” he explains.

Intercare provides job opportunities for almost 500 people and delivers health care services annually to more than 600,000 patients country wide.

The brand is built on three pillars: customer focus, quality care and an integrated offering.

“Intercare was founded in 2000 with the establishment of its first medical and dental centre in Lynnwood in 2002,” Dr Hanekom says. “Three other medical and dental centres followed shortly one in Fourways and two in the Western Cape, in Tyger Valley and Blaauwberg.”

Intercare focus health care

Expansion has been impressive, with eight in Gauteng, two in the Eastern Cape and four in the Western Cape.

The first centre for KwazuluNatal opened a month ago.

Five years ago the company entered the hospital market with the opening of the 58-bed Tyger Valley sub-acute and rehabilitation hospital.

In 2009 Intercare Hospital Holdings was registered to focus on the building and management of hospitals with special emphasis on day and sub-acute hospitals.

Two new hospitals will open soon.

“In Pretoria we will soon open a three theatre, 24-bed same day surgery hospital as well as a 36-bed sub-acute and rehabilitation hospital.

They’ll open in August,” Dr Hanekom says. “The next steps are the continued expansion of the national footprint of the medical and dental centres, growing the sub-acute and rehabilitation hospitals and establishing these day hospitals.”

Intercare’s focus is on convenience, speed and efficiency; patients don’t wait hours in a queue.

It is a one-stop, quality care service.

“We are not only rendering services, we are selling convenience and access to quality health care. That is unique to the Intercare experience,” Dr Hanekom says.

Intercare medical and dental centres are based on the retail concept of availability under one roof - saving the patient time, money and effort – and longer opening hours makes it more accessible for the busy family of today.

Services include doctors, dentists, oral hygienists, pathologists, radiologists, physiotherapists and optometrists. Most Intercare centres also host dieticians, psychologists, psychiatrists,

The Intercare Group specialises in the provision of a variety of health care services

www.southafricamag.com 105

Intercare focus health care

audiologists, speech therapists and biokineticists. Baby clinics and travel health services are also available, while nursing services offer wound care.

Intercare has also established the Centre for Lifestyle Management, identifying and treating patients with lifestyle diseases including high cholesterol, diabetes and hypertension. The aim is to equip patients with knowledge about their disease, treatment options and help them manage their lifestyle to ensure optimal wellness, Dr Hanekom says.

“What is important is that we don’t focus only on sickness but also wellness.

Because of the high cost of health care at the top end, we believe there is great scope to come with some innovative solutions and that’s our approach. Within the current hospital environment, only about 15 percent 106 www.southafricamag.com

of all surgery in South Africa is done in a same-day clinic. In the rest of the world that is as high as 60-80 percent. We believe that from an innovative point of view, by offering same-day surgery on a par with the rest of the world, we can really provide a much more cost effective alternative in South Africa.”

With more and more patients needing additional care and rehabilitation before returning home, but for a variety of reasons unable to stay in an acute hospital, Intercare established its first sub-acute and rehabilitation hospital in the Western Cape in 2006. The approach here is ‘high touch, low-tech’ as opposed to the ‘hightech, low touch’ of acute care facilities, and is part of Intercare’s strategy to encourage full recovery from serious illnesses and prevention of future complications.

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AstraZeneca Pharmaceuticals (Pty) Ltd. Reg. No.1992/005854/07. 5 Leeuwkop Road, Sunninghill, 2157.

Tel: +27 11 797 6000. Fax: +27 11 797 6001. www.astrazeneca.com. Expiry Date: March 2014.

AstraZeneca

COMPANY INFORMATION

AstraZeneca is a global, innovationdriven and integrated biopharmaceutical corporation. Its mission is to make a meaningful difference to patients through great medicines that bring benefits to their health and add value to stakeholders and society.

AstraZeneca manufactures and markets prescription medicines for six important areas of healthcare, which include some of the world’s most serious illnesses.

STATISTICS / DEMOGRAPHICS / HISTORY Year founded: Merging of Astra Pharmaceuticals (Pty) Ltd and Zeneca Pharmaceuticals (Pty) Ltd at the end of 1999 Employees: Over 61 000 employees (46% in Europe, 24% in the North America, 7% in Latin America and 24% in Asia, Africa and Australasia); 9 300 employees at 23 supply and manufacturing sites in 16 countries, 250 in SA of which 116 is field force.

Branches: Johannesburg (Head Office to South Africa and Sub-Saharan Africa) Durban, Cape Town, Bloemfontein and Pretoria Memberships: Pharmaceutical Industry Association of South Africa (PIASA) and International Federation for Pharmaceutical Manufacturers and Associations (IFPMA) Strategic partnerships: NGO’s such as CANSA and Breast Health Foundation, Foundation for Professional Development and African Medical and Research Foundation (AMREF)

For patients and physicians, it provides medicines for some of the world’s most serious diseases.

For the people who pay for healthcare, it works to make sure that the medicines offer real value for money. For its employees, it provides a culture in which they can feel appreciated, energised and rewarded for their contribution. For its shareholders, it aims to deliver value through its continued focus on innovation and running its business efficiently. For the wider community, it wants to be valued for the contribution its medicines can make to society and trusted for the way in which it does business.

It works closely with all stakeholders to understand their challenges and how it can combine its skills and resources to achieve a common goal of improved health.

Because health connects us all.

NATURE OF BUSINESS Activity: Manufactures and markets prescription medicines Disease areas: Cancer, neuroscience, cardiovascular, respiratory, gastrointestinal, inflammation, infection and diabetes R&D: Invests over $4-billion

in R&D each year. Around 15 700 people work in the R&D organisation and it has 14 major R&D centres in 8 countries, including Sweden, the US and the UK. Astra Pharmaceuticals, a generic arm of AstraZeneca Pharmaceuticals, provides novel R&D researched compounds.

Listings: Positioned in the top 8% in the sector in the Dow Jones World and STOXX (European) Sustainability Indexes Awards: AstraZeneca has been rated No.1, 8 years in a row in the Pharmaceutical Industry in Managed Health Care in SA, both with Funders and Providers.

BUSINESS & FINANCE Financial year-end: December Holding Company: AstraZeneca Pharmaceuticals Bank: HSBC Accountants: KPMG Sales: In 2010 worldwide sales totalled over $33-billion (including 10 medicines with sales of over $1-billion each) Market share: In 2011 AstraZeneca contribwuted 4.2% to the total market of the total pharmaceutical industry in South Africa TRAINING & CSI CSI: Project Phakamisa, an initiative where diagnosed breast cancer patients are guided and supported in the public system Programme: Phakamisa – Breast Cancer and Kids Haven

CONTACT INFORMATION CEO: Guni Goolab Directors: Legal and Compliance: Louendrie Pillay, Sales and Marketing – Specialist Care: Christo Kruger, Sales and Marketing – Primary Care: Karl Friberg Medical, Clinical and Regulatory: Khanyi Mzolo Human Resources: Katie Schaefer Physical address: 5 Leeuwkop Road, Sunninghill 2157 Postal address: Private Bag X30, Sunninghill 2157 Telephone: +27 (0)11 797 6000 Fax: +27 (0)11 797 6001 Website: www.astrazeneca.com

Intercare focus health care

“On the sub-acute side, we really believe it is not just about a cheaper alternative,” Dr Hanekom says.

“Most people admitted to a subacute and rehabilitation hospital do have a number of co-morbidities.

We have a very effective team of doctors, therapists and nurses that can do proper rehabilitation and prevent the readmission of that patient in the future.

“I believe that at the day hospital level we can provide a more cost effective alternative than the acute hospitals because you don’t need such expensive care facilities. Your starting costs are so much lower because staff aren’t working 24 hours so there are many reasons why you can offer them a much more cost effective alternative because you don’t sit with the high overheads that an acute hospital is faced with. International studies have shown that the quality and patient satisfaction is on par, if not better than in the acute hospitals.”

The new national health insurance scheme is set to change the face of public health care in South Africa forever.

The pilot launched in April and it will be phased in nationally over the next decade.

The public sector has shifted from tertiary to primary health care provider and private hospitals have taken over many tertiary and specialist health services.

Dr Hanekom says the new insurance scheme will help to offer health care to more people. However, it seems more and more South Africans are prepared to pay for private health care as long as they are getting value for money in terms of standards of service and care received.

110 www.southafricamag.com

The next steps are the continued expansion of the national footprint of the medical and dental centres, growing the sub-acute and rehabilitation hospitals and establishing these day hospitals

What is life without health?

We are a global research-based biopharmaceutical company and we understand that in the absence of health, life is not easy. That’s why our skills are invested in maintaining a flow of life-changing medicines. Our portfolio of products are used in the treatment of some of the world’s most serious diseases, including cancer, heart disease, neurological disorders such as schizophrenia, respiratory disease and infection. It’s also why, as one of the leading multinationals in South Africa and Sub-Saharan Africa, we are combining forces and sharing experiences with our partners, and in so doing, are able to enhance our science and go even further in the pursuit of our goal – better health for all.

Find out more at www.astrazeneca.com or call us on +27 11 797 6000.

AstraZeneca Pharmaceuticals (Pty) Ltd. Reg. No.1992/005854/07. 5 Leeuwkop Road, Sunninghill, 2157.

Tel: +27 11 797 6000. Fax: +27 11 797 6001. www.astrazeneca.com. Expiry Date: March 2014.

“We believe the national health insurance scheme will be a good thing for the business. Our interpretation of the NHI is that first of all there will be more people with access to health care and services can be purchased from either the private or the public sector. If you look at our primary care facilities they can be contracted to provide a service to a defined population so I really believe that we are really well positioned to offer a service to the NHI patient.�

Dr Hanekom was a general practitioner seven years before joining the Medical Association of SA. He became chief executive in 1990 and played a leading role in its transformation into the South African Medical Association.

112 www.southafricamag.com

We believe the national health insurance scheme will be a good thing for the business

Intercare focus health care

For eight years he served as a board member of the World Medical Association and was an advisor to the Director General of the World Health Organisation.

He left organised medicine in 1999 and in March 2000 established Intercare.

Dr Hanekom has regularly called for the South African medical profession to “take quantum leaps” and “have the courage to look beyond the status quo and not be afraid of the unknown.”

Private sector advances he says include cooperation within multidisciplinary and multiprofessional health care delivery systems, participation in preventive and promotive health care and rapid progress towards identifying and implementing more cost-effective therapies.

“We at Intercare are striving to create a better health experience – altogether - for the people of South Africa. That is our vision,” he concludes.

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

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turnaround

nears completion

114 www.southafricamag.com

Lafarge Gypsum SA focus Construction

Lafarge Gypsum SA’s Jean-Paul Croze tells South Africa Magazine that the firm’s transformation and turnaround is almost complete while outlining plans for the future.

By Ian Armitage

L

afarge Gypsum SA has undergone a remarkable transformation and buoyed by “exciting opportunities in Africa” the company is set to grow.

Just a few years ago the story was very different.

The business was struggling.

Things needed to change.

That change started when managing director Jean-Paul Croze, who was formerly vice-president of manufacturing and performance for the Gypsum Division in France and was vice-president of manufacturing in Asia, came to South Africa in 2008. The business was not in good shape.

He started by tackling HR and management challenges which had hindered growth, confident of realising the undoubted potential.

However, soon after, the global financial crisis took a hold throwing a real “spanner in the works” and forcing Mr Croze to look also at performance, technical and commercial challenges. That was a blessing, he says.

“The context and the market gave me the opportunity to address most of the challenges you can find in a business. We moved from losses to profit even in a crisis period.”

Croze has certainly led a revival at the Alrode-based operation and its plants at Roodekop and Alrode are now performing well.

It has been “further assisted” by the fact Lafarge Gypsum SA is the only plasterboard manufacturer in South Africa to have achieved Ecospecifier green labels for its products.

The green labelled products helps to enhance green ratings for green star buildings.

The scene is set for future success.

“Although we haven’t really left the downturn and the market remains tight, with some of the effects still being felt and uncertainty remaining in the eurozone and other markets, we have done well and maintained our quality and customer confidence,” says Croze, who has huge international experience and a strong industrial background with a particular focus on plasterboard, compounds and metals www.southafricamag.com 115

Lafarge Gypsum SA focus CONSTRUCTION

products. “We have focused on performance and have achieved cost reduction with HR optimisation and performance improvement; we’ve never compromised on quality and are starting to reap the rewards as the markets gradually improve and growth becomes more realistic.

“We have expanded the product range and developed a full range of Lafarge products - standard, technical and ceiling plasterboards, a range of skimming plasters and developed a range of cove cornices. All these products are now recognised in the market as top and reference quality.

“We are starting to see some good success in 2012 although on the commercial side we are still below our production capacity. However we are in a strong position and remain in the fight.”

We are starting to see some good success in 2012 although on the commercial side we are still below our production capacity

116 www.southafricamag.com

Lafarge Gypsum was established in South Africa in 2004 following the acquisition of MacSteel Interior System and operates a gypsum mine at Pofadder in the Northern Cape Province and two international class manufacturing facilities in the south-east of Johannesburg: a plasterboard factory at Roodekop, which began production in 2007 and a factory in Alrode, which manufactures steel ceiling grids, metal studs, access flooring and suppliers of aluminium profiles.

“We are working more and more on full systems, offering and guaranteeing high technical properties with global cheaper solutions for end users, the challenges being to get these solutions prescribed and

Sable Packaging 24 Park Street Jeppestown Johannesburg Tel: 0027 11 624 2504 Fax: 0027 11 624 2536 Email: mzwanele@sablepackaging.co.za Web: www.sablepackaging.co.za

We supply the FULL range of packaging material from flexible packaging and paper products, to self-adhesive tapes and strapping products.

Our head office in located in Johannesburg, and we also have branches situated in KZN, and both Eastern & Western Cape.

Our flexible packaging product range includes, but is not limited to: · Shrink film · Stretch film (pallet wrap) · Bubble wrap · Aerothene

We service the following industries, amongst others: · FMCG · Aluminium · Pharmaceutical · Rubber · Mining & Construction

We also offer boxes, tapes and strapping for all your packaging needs. All our products are manufactured and supplied to specific customer requirements.

Our state-of-the-art in-house conversion facility and fleet of delivery trucks puts Sable Packaging far ahead of the competition in turning around orders in the quickest time possible.

customers progressively changing and valuing it,” Croze says. “We are also working to offer competitive solutions for things like low-cost housing and – through our parent – we are getting the international expertise and are able to develop, adapt and test new systems to address customers’ needs.

“Potential for plasterboard ceiling and partitioning systems development is huge.

118 www.southafricamag.com

We are continuously ensuring that the products are sustainable and we encourage and promote efficient building which is the Lafarge way.”

Lafarge Gypsum has been improving operations at Roodekop since Croze took charge and has ramped up production capacity.

Cheap Chinese imports, which have flooded the market, remain a challenge however.

“That is a problem,” Croze says. “Of course

we had the downturn and that forced price pressure as smaller players tried to survive. Price in some parts of the market has taken over quality and the guarantee and that is an issue. It is becoming more and more difficult too because we have more product coming in from China, cheap product. They aren’t of the quality we have and don’t have the same guarantees but budgets are tight and consumers

Lafarge Gypsum SA focus Construction

can be tempted. We have of course managed to focus on maintaining our quality without passing additional cost onto the customer and have a competitive offering. I think that has been a real success.”

There is growth in the market and things are moving in the right direction.

“How do you see the industry developing? I see plasterboard solutions taking more and more space in partitioning, in the commercial and also in the residential market. I also see customers being more and more

sensitive to the environment, energy saving, sustainable development and a host of other issues. That means giving more and more possibilities for the plasterboard system to be developed and to become more and more competitive.”

South Africa demonstrated strong growth in the years leading up to the financial crisis and Croze was originally brought in to help expand Lafarge Gypsum’s operations.

That is happening.

“Plenty of neighbouring countries such as Botswana, Zambia, Zimbabwe, Mozambique and Namibia are consistently growing,” he says.

“I would say we have rationalised our organisation a bit and we have refocused our export but the growth potential here is big.

“We see lot of potential in the use of plasterboard in Africa. What challenges do we face? Helping and supporting the development of plasterboard systems is the big one.

We have to address all segments of the market – commercial, upmarket residential housing and also low cost housing.”

Lafarge is established and known in the cement market in Africa and clearly there are lots of opportunities for Lafarge Gypsum SA. The challenge is to realise those opportunities.

“We have a strong, competent team and I am optimistic and confident about the future,” Croze concludes.

Lafarge wants to create a legacy for tomorrow and all its initiatives are geared in that direction.

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

END

www.southafricamag.com 119

lands Z ambian A I R P O R T

FACELIFT

MORE TOURISTS

120 www.southafricamag.com

NACL focus travel

National Airports Corporation Limited (NACL) of Zambia’s strategy to upgrade, expand and improve the nation’s four most important airports continues at a pace.

South Africa Magazine catches up with director of airports services Prince Chintimbwe who says airport capacity should not hinder Zambia’s “propensity to grow”.

By Ian Armitage

T

ourism is one of Zambia’s key economic drivers next to agriculture and mining and it is a sector undergoing serious growth, with an increasing number of people looking to experience the country’s stunning landscapes and wildlife.

The government has recognised the significance of the sector and has pursued several programmes aimed at improving Zambia’s tourism industry and infrastructure.

It has allocated extra funds to promoting Zambia as a tourist destination, but more importantly, has invested in the upgrade and expansion of the country’s most important airports.

“We have a strategy to upgrade, expand and improve four important airports and create a gateway to the country that will leave a lasting impression,” says National Airports Corporation Limited (NACL) of Zambia’s director of airports services Prince Chintimbwe. NACL is the government owned parastatal which manages, maintains and develops the four designated international airports in Lusaka, Livingstone, Mfuwe and Ndola.

“We are responsible for those four airports, yes,” Chintimbwe says.

“Most visitors and workers arriving in Zambia enter the country via Lusaka, the country’s main airport. Harry Mwaanga Nkumbula International Airport (formerly Livingstone) is another very important airport and it services the tourist destination of Victoria Falls.”

Mfuwe services the South Luangwa National Park and Ndola, which lies in the heart of the Copperbelt province, is the route www.southafricamag.com 121

NACL focus travel

of access for the mining industry – an industry in full expansion mode.

“Our mandate covers those airports,” Chintimbwe says.

“The expansion in mining and tourism has been reflected in the passenger figures, which have been increasing. The growth has also been felt by the regional airports.”

NACL was established in 1989 by an act of parliament with a mandate to provide air navigation across the nation and airport services at Harry Mwaanga Nkumbula International, Mfuwe, Simon Mwansa Kapwepwe and Kenneth Kaunda International airports.

Over one million passengers passed through Zambia’s airports in 2011.

Kenneth Kaunda International airport, which Chintimbwe describes as “the international gateway to Zambia”, handled 65 percent of all those passengers and is NACL’s flagship airport.

“Why are we improving our airports?” he asked.

“The airport is the first and last thing people see when they come to and leave the country. We want the experience to be lasting.

“Lusaka is clearly the main gateway with three other airports that have very specific roles within the airport system. Certain facilities were in much greater need of development than 122 www.southafricamag.com

others so our investments and plans are based on that and are phased.”

NACL has created a master plan for the development of Kenneth Kaunda International, Harry Mwaanga Nkumbula International, Mfuwe and Simon Mwansa Kapwepwe up to 2029.

“It is an ambitious plan we have and we have done and will be doing a whole host of things,” Chintimbwe says.

“Work at Harry Mwaanga Nkumbula International is well underway and we are hoping to have phase I finished very soon.”

Harry Mwaanga Nkumbula International airport received 10 million euros from the European Union in 2007, which was

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spent rehabilitating and extending the apron and runway to three kilometres.

“We have a phased approach,” Chintimbwe says. “Phase I began in August 2010 and includes the construction and equipping of the concourse area and departure lounge. This will go straight into operation when it’s complete later this year. Phase II will start from that point and will conclude with the construction of the arrivals part of the international terminal.

“This whole project to improve that airport is expected to cost around $95 million, according to the master plan by Leigh Fischer.”

Kenneth Kaunda International airport will undergo the most extensive expansion that will be phased over the next few years.

A new terminal building designed for international arrivals and departures will replace the current facility, as well as the construction of

124 www.southafricamag.com

auxiliary infrastructures such as aprons and taxiways. A new control tower will also be developed on the west side of the new terminal building.

“Lusaka, of course, is the nation’s international gateway and the plans here are on a much larger scale,” Chintimbwe confirms. “Designs are already completed for the construction of a new terminal capable of handling over two million passengers a year. It is estimated to cost around $196 million.”

Lusaka airport was built in 1967 and has only seen minor upgrades over the decades. The new terminal will be located adjacent to the current facility.

“Like I said, we developed a plan which is constructed in phases and the focus currently is on Harry Mwaanga Nkumbula International.”

The upgrades and improvements to all of the airports are absolutely vital, Chintimbwe adds. “The current

We have a strategy to upgrade, expand and improve four important airports and create a gateway to the country that will leave a lasting impression

NACL focus travel

infrastructure predates independence.

We’re working to change this as quickly as possible - capacity and the facilities and infrastructure should not hinder our propensity to grow. We are trying to make the capacity available to meet demand.

“Where we are already making improvements, the aesthetics are very important. From the aesthetic perspective, considerable thought has gone into designing the airports to represent the region in which they are located. All our airports will carry a theme.”

Once the work is completed, it will equip Zambia to fully develop its blossoming tourist trade and to provide comfortable and attractive travel facilities for the many people arriving and departing with the mining industry.

To learn more visit www.nacl.co.zm END

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126 www.southafricamag.com

Super Group focus retail

South Africa Magazine profiles Super Group, the global logistics and supply chain management company.

By Ian Armitage

T

ransport and logistics firm Super Group is a darling of the JSE at present. Just a few years ago, however, it seemed it was all over - its share price had plunged following botched efforts to expand rapidly into Africa, which necessitated a R1.2 billion recapitalisation to help it avoid bankruptcy.

The restructuring saw it dispose of non-core assets such as Mica stores.

Things have certainly changed. Super Group is, well, much more super.

Despite the highly competitive economic and trading environment, it is performing very well – the transport and logistics firm saw significant earnings growth in the six months ended December, thanks largely to operations in Africa. Operating profit was up 36 percent to R405 million from the previous corresponding period, with cash generated from operations up by 105 percent to R767 million, while consolidated gearing was reduced to 15 percent, from 27 percent previously.

Super Group attributed the results to the “satisfactory performance” of the South African supplychain business and the strong improvement in

www.southafricamag.com 127

Super Group focus retail

operating margins reflected

by African logistics.

Super Group’s fleet solutions business performed extremely well, securing new contracts and reducing costs.

The group’s dealerships also saw sales volume growth, with a 19 percent rise in new vehicle sales.

The success of its dealership division is based on building long-term relationships with clients, staff and suppliers, and it is currently looking to expand. The dealership division has been a strong performer and Super Group is keen to grow it. Currently the division consists of 23 franchised motor dealerships – 20 passenger vehicle and three commercial vehicle dealerships – based in Gauteng and the North West Provinces.

“Approximately two-thirds of sales are passenger vehicles, with the remainder comprising light, medium and heavy commercial vehicles,” the company’s said in a recent release.

Super Group’s share price went up 82.8 percent between February 2011 and February 2012 and has ballooned since - a sign of just how well things are going.

Despite some obvious challenges, it has a lot to look forward to.

One challenge is the fact that the South African 128 www.southafricamag.com

iX Online Motoring iX Online Motoring Super Group dealerships following services:

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Super Group focus retail

logistics system is undergoing fundamental change, having committed itself to increasing the proportion of freight travelling by rail. According to Transnet’s new Market Demand Strategy announced by President Jacob Zuma during the state of the nation address, Transnet will spend R300 billion over the coming seven years to increase the competitiveness of rail. You might think this was bad for Super Group? Actually no - it is banking on intra-African trade growing much quicker than rail capacity, offering opportunities.

Super Group is on the acquisition trail again after spending much of the late 1990s rationalising its operations and selling non-core and unprofitable businesses.

130 www.southafricamag.com

The group has identified a few acquisition opportunities in the dealership and supply chain divisions.

It has acquired new dealerships in South Africa, getting hold of Lexus the Glen in Glen Eagles, Chrysler Jeep Dodge East Rand, Suzuki Boksburg, Alfa Midrand and Jaguar East Rand.

“Super Group Dealerships plans to grow, remain professional and give our clients outstanding service.

We would like to add BMW, Kia and Hyundai to our stable,” the company told South Africa Magazine.

It is currently redeveloping three dealerships in Rustenburg – Audi, Renault and Volkswagen.

To learn more about Super Group visit www.supergroup.co.za. END

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