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CHRISTO WIESE
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INSIDE TOP 500 UPFRONT Contributors and featured clients
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Editor’s letter
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Foreword
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FEATURES Interview with Christo Wiese
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Taking stock of GDP
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Top 500 - how the winners are decided
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The Top 500 companies in South Africa
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The big five of banking
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Special economic zones
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The future of state-owned companies in South Africa
Retail possibilities in South Africa
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Minister, Public Enterprises
The future of state-owned companies in South Africa
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Leadership, structure and people
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by Lynne Brown
Retail possibilities in South Africa by Christo Wiese
Special economic zones by Rob Davies Minister, Trade and Industry
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Feeding our nation by Fiona Wakelin
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CONTENTS
Credits
ARTICLES
Keeping buoyant
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TOPCO MEDIA
Feeding our nation
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CEO Ralf Fletcher
BPO industry in the spotlight
UPFRONT
Making South Africa a winning nation
President Jacob Zuma maps the way forward Government initiatives stimulate the economy
INDEX
A-Z of the Top 500 companies
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Editorial Director Ryland Fisher
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Editor Fiona Wakelin
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National Sales Manager Judy Twaambo-Chileshe Head of Sales/Project Manager Guy Chicken Brand Executive Stephani Ferreira Business Solutions Nina Zani Research Sandra Bock
TOPCO STUDIO Production Director Van Fletcher Editorial Assistant Jocelyn Stiebel Creative Director Emil Lime Designers Kamiela Abrahams Michelle Rademeyer Traffic Manager Candice Land artwork@topco.co.za Distribution & Subscriptions Ingrid Johnstone Proof Reader Dawn Katovsky Photographer Marnus Meyer Make-up Artist Kirsti Van Zyl Printers Paarl Media Images ŠshutterstockŽ Gallo Flickr Head Office Top Media & Communications (Pty) Ltd T/A Topco Media Bree Street Studios, 2nd Floor 17 New Church Street, Cape Town Tel: 086 000 9590 Fax: +27 (0) 21 423 7576 Email: info@topco.co.za Website: www.topco.co.za
The Wiese factor An interview with Christo Wiese
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DISCLAIMER
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Top Media & Communications (Pty) Ltd T/A Topco Media Reg. No. 2011/105655/07. While every care has been taken when compiling this publication, the publishers, editor, and contributors accept no responsibility for any consequences arising from any errors or emissions. ISBN: 9780620531054
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UPFRONT
CONTRIBUTORS & FEATURED CLIENTS
CONTRIBUTORS LYNNE BROWN
ROB DAVIES
JEREMY GARDINER
CHANTELL ILBURY
Lynne Brown is Minister of Public Enterprises and served as a Premier of the Western Cape Province from 25 July 2008 to May 2009. Prior to her appointment as a premier, she was MEC for Finance and Tourism in the Western Cape.
Rob Davies is Minister of Trade and Industry. He holds a doctorate in Political Studies from the University of Sussex and a Master’s in International Relations from the University of South Hampton. He was a member of the South African Ministerial delegation to the World Trade Organisation in Cancun in 2003 and Hong Kong in 2005
Jeremy Gardiner joined Investec in 1991. He has been a Director at Investec Asset Management and Investec Fund Managers since December 1999 and is responsible for communicating Investec’s views on global and domestic markets and economies to the investing public and the world at large.
Chantell Ilbury is an independent scenario strategist, facilitator, speaker and author. She specialises in the use of scenarios and game-playing strategy to guide corporate teams through strategic conversations.
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BRIAN KANTOR
ANDREW OLIVIER
ANCHEN VAN ANTWERPEN
CHRISTO WIESE
Brian Kantor serves as Chief Investment Strategist and Economist, Investec Wealth and Investment. He was the founding Chairman of Victoria and Alfred Waterfront (Proprietary) Limited, leading that company and the redevelopment of the Cape Town Waterfront from 1988 to 2001 and is Professor Emeritus, University of Cape Town.
Andrew Olivier is managing partner of the Working Journey, an Australian consulting company with offices in Sydney and Adelaide. The Working Journey (www.theworkingjourney. com) has strong links in South Africa. Andrew’s most recent book is “Organisational Design: What Your University Forgot to Teach You” (2013).
Anchen van Antwerpen is the founder of 3flow Consulting, a Cape Town based company specialising in master data analytics and insight management. She has over 15 years’ experience in the online retail sector, h aving had a front row seat to the development of South African ecommerce.
Christo Wiese is an independent non-executive director at Steinhoff International Holding; non-executive chairman of Invicta Holdings; and chairman of Pepkor and controlling shareholder of Shoprite Holdings, Africa’s largest retailer. He was recently awarded an honorary doctorate for his contribution to the South African economy.
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FEATURED CLIENTS Bestmed Medical Scheme ….…...….. Pg 86
GIBB
Bidvest Protea Coin ….…............…… Pg 34
Grid Worldwide .................................... Pg 93
SANRAL ............................................... Pg 102
Claremart ….…….........................…... Pg 19
JHB Water .......................….…....……. Pg 58
UCT Graduate School of Business .... Pg 101
EXPOCENTRE ...………................... Pg 106
MSC ….……...................................…. Pg 84
VKB Agriculture .................................. Pg 52
FleetAfrica….…..........................…..… Pg 82
Nashua ........................…. Inside Front Cover
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PG Bison ............................................ Pg 66
EDITOR'S LETTER
UPFRONT
BUSINESS INTELLIGENCE IN EVERY SENSE OF THE WORD Whilst at times it may feel as if technology has made the world a crowded house in which to live, it has fundamentally changed the way we do business, banking, communicate and even conduct conflicts. Farmers across regions, astronauts in space, surgeons on different continents and school children in rural areas are now connected in a way that was inconceivable 50 years ago. We have redefined the term 'community' – and Toffler’s third wave continues to gather ever-increasing momentum. The only constant is change and, like the dinosaurs, if we are not adaptable and agile in our response to changing external forces, then the light at the end of the tunnel may just be a train. As editor of Top500 I am privileged to be in conversation with leaders in industry and government who are in the vanguard of seizing challenges and turning them into opportunities. This leading B2B publication provides invaluable business intelligence in the form of the listing of the top 500 best-managed companies in the country together with incisive features and articles written by industry experts, top of their game. On our front cover is the iconic Christo Wiese, who was recently named the richest man in South Africa and who has blazed a trail in the retail industry as well as on the mergers and acquisitions front. In this edition we have included: an article by, and an interview with, Dr Christo Wiese; Prof Brian Kantor, Chief Strategist and Economist from Investec, who unpacks the GDP; Rob Davies, Minister of Trade and Industry, speaking about the Special Economic Zones and Lynne Brown, Minister of Public Enterprises, who updates us on the status of state-owned companies. The article on the banking sector presents an overview of 'the Big 5', and the feature on requisite organisations addresses success from a level of work and complexity paradigm. The 'Big Issue' feature takes a look at the state of our nation from different perspectives. This publication truly provides business intelligence in every sense of the word and I hope you enjoy engaging with the research, the articles and the features as much as I have.
Fiona Wakelin Editor
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SOUTH AFRICA A NEW PLATFORM FOR BUSINESS A Foreword by Thulani Nzima, Chief Executive Officer, South African Tourism
It gives me great pleasure to pen this Foreword on behalf of South Africa’s tourism industry – with particular reference to business eventing. Tourism continues to play a meaningful role in contributing to the economic development of our country and our people and remains one of the six economic growth sectors, as identified by government, on which to focus its efforts to support investment and facilitate growth.
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One particular offering of this sector is business events, which was identified by the Department of Trade and Industry as one of three niche tourism segments. In response to this and the mandate articulated in the National Tourism Growth Strategy, South African Tourism established a business events unit within the organisation to help grow the industry by taking advantage of the international interest in the country as a destination for conferences, incentives and exhibitions.
FOREWORD
The South Africa National Convention Bureau (SANCB) was launched in 2012 and promotes the country as a preferred business events destination by focusing on its infrastructure and facilities, from telecoms to modern transport and healthcare, world-class hotels and cuisine to a vibrant cultural life. Our business also focuses on the unique selling proposition that South Africa offers the global business events market, for being a ‘value for money’ destination, possessing accessible and reliable infrastructure and a professional industry. At the time of the launch of the SANCB, we agreed with industry partners and stakeholders on the following five year goals and targets to grow the South Africa business events industry: • Increase the size of South Africa’s business events industry by 50% • Double the impact of business events on tourism yield and geographic distribution • Broad recognition in South Africa of the business events industry as a major driver of job creation, skills development and transformation of the nation’s knowledge and creative economy It is safe to say that, since then, South Africa’s business events industry has continued to soar, securing 163 international association conferences for the country over the next five years, which will attract over 150 959 professionals. This in turn will create 753 event days and generate an estimated R3.19-billion in economic impact. The significant wins have thrust South Africa onto the global stage and fast-tracked our global rankings. According to the International Congress and Conventions Association (ICCA), the most accurate and reliable gauge in the world of how destinations perform in the association market, South Africa hosted 124 international and regional association meetings moving South Africa from 34th positing in 2013 to 32nd position in 2014.
Tourism (including business events) continues to support one in ten South Africans in employment and contributes about 9.5% of the country’s GDP in total. From mining, manufacturing and information and communication technology to creative industries and medical sciences, hosting events in these sectors contributes significantly to the macro-economic benefits for our country. It is because of this contribution that tourism has become one of our country’s bedrock industries for growth, for development and for socio-economic progress. These are the benefits we want our local industry and corporates to know about and our counterparts across the continent to experience. While South Africa is the undisputed leader in business events on the African continent, the country still has to work hard to attract and host more regional association conferences. The continent hosted 308 association meetings out of the 11 565 held worldwide. We are changing this through our business trade show platform, Meetings Africa. The business event trade show offers ample opportunity for African exhibitors to network and do business with hosted buyers from the rest of the Continent. It is now the leading, biggest and longest running business events trade show in Africa. It is also highly regarded as a quality show that is fast changing the way global business events industry views the Continent. South Africa’s business events are globally competitive, locally relevant and on an all-round winning path. We invite all who want to be part of this growth and contribute to it, to work with us to see its full impact realised.
This makes South Africa the top business events destination on the Continent ahead of Kenya, Senegal and Egypt, which fared impressively - and ahead of other global destinations, such as Hong Kong, the UAE and New Zealand. The wider impact of the industry’s success is evident beyond the foot and air traffic we see, or the lengthy awards and accolades our destination receives. Our successes demonstrate to the world how rich we are in intellectual and human resources, highlights our professional and able business events industry that is on hand to deliver exceptional experience and our intimate understanding of the economic sectors where South Africa is a leader globally. But perhaps more importantly, our success is evident in the lives and livelihoods of the people who are directly and positively impacted by these meetings and big events.
THULANI NZIMA Chief Executive Officer, South African Tourism
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THE WIESE FACTOR A SOUTH AFRICAN SUCCESS STORY The year 2015 marks the golden anniversary of the opening of the first Pep store in Upington. Fifty years later, Christo Wiese, chairman of Pepkor and controlling shareholder of Shoprite, speaks to Fiona Wakelin about his journey – and doing business in South Africa today.
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INTERVIEW WITH CHRISTO WEISE
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ARTICLE
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“I was born in 1941 and we lived on a farm until we moved to Upington in 1947. It was a fascinating place to grow up in because, in those days, it was still very much a frontier town. It was out in what people would refer to as ‘the bundu’. “People were isolated in a very harsh, very beautiful part of the world. They had to work hard to do well for themselves – but the town itself was dynamic. It was post the Second World War. There were lots of things that just weren’t as available as they are today. But what was fascinating is how, in one generation, in my lifetime, I saw people who had been a relatively poor but very proud community, becoming very prosperous.
“I always say to people when they ask ‘what is the secret to success?’ – very simply, it’s a four letter word, spelled W-O-R-K.” “I was fortunate in that I grew up in a business home. My father had a farm but he also had a business in town. Eventually my mother had her own business. And so I learned about those things, in a way, almost subconsciously. Today I notice how many people there are that are welleducated but simply have no idea as to how a business works. Sitting around the dinner table while things are discussed – you become aware of the very basic principles. You know that the customer is king and you’ve always got to be ready to render the best possible service. So for me it came very naturally. “Although when I grew up I didn’t plan to make business my career. I wanted to be a lawyer, actually. I started off by saying I wanted to be a magistrate – I thought that it was quite romantic. Intellectually it appeared to be challenging. But as I say I’m very grateful for the fact that I grew up in the home that I did with parents who loved life but had very clear beacons. My dad died young, he was 64. But my mum lived to the age of 94 – she was a remarkable woman.
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“I left Upington at the age of 15 to go to school at Paarl Boys High; then I went to university and until my 24th year never even considered not going back to Upington, because it was my world. And then, one day I got up and I knew that I would never go back there permanently.” AND THE HISTORY OF PEP? “PEP started as a very, very small business. It was literally one room. There wasn’t an abundance of capital and it started out there in Upington. Infrastructurally, it was adequate, because it had rail and one plane a week to Cape Town and it had roads, although mostly gravel, to the big city. But in terms of starting a small business, we experienced all the challenges that every small business experiences – there was never enough money and it was difficult getting credit. We had to find the right people to work in the business. – the list of challenges that every small business person will be painfully familiar with. But the point I always make is that all big businesses have one thing in common, they all start out as small businesses. “There were a few other challenges that I would rank pretty high in priority. We’ve been through our share of recessions, where the economy just slowed dramatically, where it currently is very slow going. We’ve gone through all the political turmoil of the ‘80s and then the speech in 1990 and the advent of the new South Africa. Those were all challenges that we had to face. But there’s nothing unique about it. People in other countries, other societies go through far worse upheavals and the trick is to adapt and to learn to live with it.” ‘TIMING IS EVERYTHING’ BUT SO IS CHOOSING THE RIGHT PEOPLE. WIESE SPEAKS ABOUT VALUES AND THE IMPORTANCE OF A BUSINESS CULTURE. “Right at the outset Renier van Rooyen, founder of PEP, who is one of South Africa’s great entrepreneurs, said we had to articulate our values, or our philosophy, very clearly so that everybody would know the kind of drumbeat to which we march. We used five words: faith, positive thinking, hard work, enthusiasm and compassion. Faith can mean many things – faith in yourself, faith in your fellow man,
faith in a higher being, in your country. Hard work speaks for itself. I always say to people when they ask ‘what is the secret to success?’ – very simply, it’s a four letter word, spelled W-O-R-K. If you work the solutions will come. Somehow some people think they can skip that and it will all happen. If your business culture is based on sound principles, people who are not comfortable with that culture, will stick out. So it is a sort of a natural process of weeding out those who do not contribute. “One of the strengths in PEP was that it was like a family business. Family members all joined and then friends and then the family of the friends. So that formed the nucleus and that, I believed, contributed to establishing and developing the culture. And today, one of the things I’m very proud of: PEP is totally reflective of the demographics of South Africa – and has always been, even in the really bad, old apartheid days. So that’s been a wonderful experience.” MOVING ON TO THE CURRENT SITUATION IN SOUTH AFRICA “The one point I often try to make to people, when they complain about South Africa, the question always has to be – compared to what? Just look around you. What must it be like to run a business in Iraq or Afghanistan or Yemen? But people always want to compare South Africa to Switzerland. And then you go to Switzerland and you find they’ve got their own problems. “South Africa is going through a tough patch currently in its trajectory but it’s not the toughest patch that its been through. Look at the South African war and you can imagine what happened to the rural people, both white and black after the scorched earth policy. They had nothing left – and they’d entered a new century and the world was changing. So the patch we’re going through at the moment may seem pretty tough – but if you compare it to others, it’s actually less so. “That is not to say that there aren’t enormous challenges or huge problems. I don’t get discouraged but I do get very frustrated – only because it is so easy to do a few things that will make life so much better for so many more people. “The one area in which South Africa has
INTERVIEW WITH CHRISTO WIESE
FEATURE
“The patch we’re going through at the moment may seem pretty tough - but if you compare it to others it’s actually less so.”
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“If you’re not positive about life, how do you get on?”
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INTERVIEW WITH CHRISTO WIESE
consistently outperformed the rest of the world since 1994 has been tourism, which is a tremendous, miracle industry. And then suddenly we get new visa rules. Now China and India are not promoting South Africa anymore as a tourist destination – because if someone from China wants to get a visa he has to personally travel to a South African embassy or consulate. The result is already a noticeable decline In tourist numbers from those areas, I am told. “So those things are extremely frustrating. How do we get through it? We talk about it, we put the case forward and we know that things change – and sooner or later the light will dawn. It’s an old cliché but everybody in South Africa, across racial and ethnic groups will sink or swim together.” WIESE CONTINUES TO BE OPTIMISTIC ABOUT SOUTH AFRICA’S FUTURE. HE SPEAKS ABOUT SPREADING THE OPTIMISM AND GETTING PEOPLE TO STAY AND INVEST IN THE COUNTRY’S FUTURE. “It’s my perception that South Africans are among the people in the world who beat up on themselves the most. Everything that happens here is a calamity. Again, coming back to my earlier point, compared to what? If I could have my way, I would like people to understand something that I’ve been struggling with, which is – what is the benefit of being negative? “I’m not starry eyed, I don’t close my eyes to the challenges and the problems, but how do I benefit myself or my community or my country by being negative? Nobody has ever been able to explain that to me. It comes back to those five words, positive thinking could actually be number one – if you’re not positive about life, how do you get on? “To be an entrepreneur, you’ve got to be positive. Because if you get up in the morning thinking about what can go wrong in your world today - that can wipe you out. You’ve got to just be that little bit adventurous. You don’t focus on what can go wrong, but what you can
make right and build your business. And this leads me to what can we, as South Africans, do about the troubled times we find ourselves in. The first thing we can do is stop beating up on ourselves. We need to have conversations, public conversations. No one person has all the wisdom to solve South Africa’s or the world’s problems. We know it will be a huge joint effort, but the prize of success is enormous.” SPEAKING OF SUCCESS, WIESE KEEPS POWERING AHEAD – NAMED AS SOUTH AFRICA’S RICHEST MAN FOR 2015 – THIS YEAR BRAIT, IN WHICH HE IS MAJORITY SHAREHOLDER, PURCHASED AN 80% SHARE IN VIRGIN ACTIVE AND 90% OF CLOTHING RETAILER NEW LOOK. “As you know Virgin Active was bought by Brait. Brait focuses on businesses with very good management, with high growth potential and businesses that are highly cash generative. Virgin ticked all three of those boxes. What is interesting is that Richard Branson, the entrepreneur, retains a 20% stake, which we feel is important. “Virgin Active is already the dominant player in that industry, in both South Africa and the UK. It has started rolling out in high growth economies in South East Asia, where they see tremendous scope for that kind of business. So it has a very, very high growth profile and excellent management and we are very excited about it. But obviously Brait will from time to time, as they normally do, update the market on how the business is going.” WIESE’S BUSINESS ACUMEN AND PASSION IS ALL ENCOMPASSING. HE SPOKE AT LENGTH ABOUT HIS INVOLVEMENT WITH THE FREEMARKET FOUNDATION INITIATIVE WHICH IS MAKING A PROFOUND DIFFERENCE TO THE LIVES OF THOSE WHO ARE NOT ABLE TO PARTICIPATE IN THE ECONOMY BECAUSE THEY DO NOT HAVE TITLE DEEDS TO THE LAND ON WHICH THEY LIVE.
FEATURE
“Poor people around the world own trillions of dollars of assets but can do nothing with them, because they do not have legal title. The land on which their homes are built, whilst legally belonging to the state or municipality or provincial government, in practice belongs to the occupier. Hernando de Soto, Peruvian economist in his book The Mystery of Capital said that what government should do is simply, through a stroke of a pen, make those people owners. “The Free Market Foundation, after years of knocking at doors and lobbying, finally made a breakthrough in Free State and Western Cape to convince government to give the land to the occupant. They’ve managed to bring that cost down to R1 850 per unit. “My family donated 100 units in the Free State and 100 units in the Cape. The point I made at that handing over ceremony was that in the preamble to our Constitution it is stated that South Africa belongs to all the people who live in the country. This initiative gives body to that concept because now it is possible, if we get this initiative rolling the way I’m hoping it will, for every household in South Africa to have title deed.
“Everybody in South Africa, across racial and ethnic groups will sink or swim together.” “This is something in which every South African can participate. We can, literally, in a year or two, transform South Africa. It’s not just about the monetary value but about human dignity. There are 12 million formal housing units in South Africa. If each one of those housing units donated one title then everyone would own their land. And the South African landscape would be completely transformed.”
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TAKING STOCK OF GDP by Brian Kantor
Investec Chief Economist, Brian Kantor takes a close look at South Africa’s GDP in the second quarter in 2015 – and finds all is not as it seems ... The SA economy in Q2 2015 was not as it appeared – after taking an inventory. According to the first readings of gross domestic output (GDP), in real terms for Q2 2015 the SA economy performed very poorly. It is estimated by stats SA to have shrunk by 1.3% on a seasonally adjusted annual rate in the quarter.
(All figures are taken from the Quarterly Bulletin of the SA Reserve Bank, September 2015.)
REAL GROSS DOMESTIC PRODUCT 6
Percentage Change
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Quarter to Quarter* Year on Year
4 3 2 1 0 -1
*Seasonally adjusted annualised rates
2010
2011
2012
2013
2014
2015 Source: SA Reserve Bank
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TAKING STOCK OF GDP
On a second reading for the second quarter of figures provided by the SA Reserve Bank, which include estimates of the demand side of the economy, the outcomes seem even worse. Gross Domestic Expenditure (GDE) is estimated to have declined by as much as a 7.2% rate in the quarter. The outcomes were not nearly as dire as might be inferred from either the GDP or GDE estimates. Final demand, the sum of
FEATURE
spending by households, firms and the government sector, actually grew by about 1%. That final demands continued to grow at a very modest pace is consistent with our own measures of economic activity. What turned final demands into very weak GDE growth rates was a dramatic decline in inventories. Inventories in Q1 grew by R8.8-billion on a seasonally adjusted annual rate. In Q2 they declined by the equivalent rate of over R38-billion. This decline in inventories was enough to reduce real GDP in the quarter by as much as 6.2%.
REAL GROSS DOMESTIC EXPENDITURE AND FINAL DEMAND Percentage change from quarter to quarter 15 Final demand Gross domestic expenditure
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0
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-10 2010
2011
Seasonally adjusted annualised rates
2012
2013
2014
2015 Source: SA Reserve Bank
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Much of the action is attributable to the large seasonal adjustment factor interpolated to the estimates of inventories, the consistency of which may well be questioned. It is normally the case that the second and third quarters are periods when inventories are built up and the fourth and first quarters are normally associated with a general run down in inventories. But as the Reserve Bank comments, inventory events in Q2 were anything but normal in the mining and oil sectors. To quote the Economic Review of the Reserve Bank for Q2 2015: “Following a modest build-up in inventories in the first quarter of 2015, real inventory levels declined significantly at an annualised pace of R38.9-billion (at 2010 prices) in the second quarter. The rundown of real inventories in the second quarter of 2015 was mainly due to the destocking in the mining and manufacturing sectors, partly reflecting subdued business confidence levels and a decline in import volumes.� In the mining sector, inventory levels at platinum mines in particular contracted during the period on account of a significant increase in the exports of platinum in order to fulfil offshore export obligations. The rundown of inventories in the manufacturing sector partly reflected lower crude oil import volumes due to scheduled maintenance shutdowns at major oil refineries over the period. Consistent with a slower pace of increase
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in retail trade sales, the level of real inventories in the commerce sector rose in the second quarter. Industrial and commercial inventories as a percentage of the nonagricultural GDP remained unchanged at 13.8% in the first and second quarters of 2015. Inventories can run down because firms lacking confidence in future sales plan for a reduction in goods held on the shelves or in warehouses. They may also run down in an unplanned way because firms are surprised by the actual sales they were able to make. The planned reduction in inventories can represent bad news for the economy as orders decline. The unplanned reduction can mean better news should firms attempt to rebuild inventories. Similarly, a planned increase in inventories can reflect a more confident outlook for sales to come. An unplanned build-up of inventories may also reflect unexpectedly poor current sales volumes and so fewer orders to come in the quarters ahead. Making the distinction between planned and unplanned inventory accumulation will be all-important for any forecast of economic growth. In the case of the SA economy in Q2, it seems clear from the Reserve Bank statement that the run down in inventories in Q2 was for largely idiosyncratic reasons, making the application of seasonal adjustments particularly subject to error.
TAKING STOCK OF GDP
Judged by the estimated growth in final demand, the economy did not deteriorate in Q2 as the statistics on the pure face of it may suggest. In our judgment of the National Income Accounts released for Q2, the economy continues on its unsatisfactorily slow growth path as other indicators of the economic activity, including our own Hard Number Index, have revealed. The economy is growing slowly and not shrinking, nor is it about to do so.
FEATURE
There is, moreover, at least one silver lining to be found in the latest statistics: as much as inventories subtracted from the growth rate, net exports added as much, due to the growth in export volumes and the stagnation of import volumes. The trade balance went into surplus and the current account deficit declined thanks to the weaker rand and the relative absence of strike action.
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“As much as inventories subtracted from the growth rate, net exports added as much, due to the growth in export volumes and the stagnation of import volumes.� Another development this year, essential to lessening the tax burden on the productive part of South Africa and so increasing potential growth, is the further decline in public sector employment in Q1 noted by the Reserve Bank. Lower tax rates and less spending on employment
A combination of export growth and a stronger trade balance, combined with a smaller budget deficit accompanying fewer expensive public officials, of the kind revealed in Q2 2015, is some of the right stuff necessary to recalibrate the SA economy in the collective mind of the global capital market from a fragile to a resilient economy.
http://www.zaeconomist.com/sa-economy/ taking-stock-of-gdp/ September 17th, 2015
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benefits for a bloated public sector and also lower interest rates, will help stimulate a recovery in the allimportant household spending that is essential for faster, sustained growth over the longer run.
What it takes to be a TOP
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100 000 members of the public attend our auctions annually 57 000 website visitors to our website per month 1000 auctions carried out by us in a year 80+ Properties on auction every month 65 different newspapers used to highlight our properties 60 repossesed vehicles on offer every month 0% is the amount of commission our sellers have to pay
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021 425 8822 www.claremart.co.za 49 Somerset Rd, Green Point, Cape Town, 8001
Leading The Industry
SOUTH AFRICA’S TOP 500 COMPANIES
HOW THE WINNERS ARE DECIDED The Top500 research methodology has been designed in conjunction with the University of Cape Town’s Development Policy Research Unit Top 500 aims to identify the top five companies in each of the 100 business sectors monitored by Topco Research Department. In order to do so, some measure of the qualities that we consider to be characteristic of top companies must be designed in order to rank companies. To be classed as one of South Africa’s best companies, we expect companies to excel in three key spheres, namely financial performance, empowerment, and policy and accreditation. The criteria within financial peformance speak to the ideas of top companies being large, growing and productive institutions that are leaders by virtue of their size and dynamism. Financial performance is measured by four indicators: turnover, rate of turnover growth, rand turnover growth, and turnover per employee.
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Size is both an indicator and an outcome of whether or not a company is a top company. From the perspective of financial performance, turnover is used to proxy company size and this indicator has a large weight within the measure. The dynamism of top companies is reflected in their ability to expand and grow, and so we include two indicators – one relative, one absolute – of growth in the scoresheet. The former indicator is the rate of turnover growth over the year, since top companies are faster-growing, while the latter is the rand value of the turnover growth. Absolute turnover growth is included to account for the fact that top companies’ growth should make a large contribution to increased total output. These two indicators have a medium weight within the scoring system. Top companies are more productive than other companies and the final performance indicator, turnover per employee, which has a medium weight, speaks to this characteristic. The business sector has an important role to play in promoting equity and social transformation. Top companies are committed to fulfilling this role, and this commitment is measured using six criteria. Two of these criteria focus on companies’ commitment to the goal of transformation as
TOP 500
demonstrated in their employment profiles, namely the shares of employment accounted for by female employees and by black employees respectively. Top companies, however, go further than just employment, and are committed to ensuring greater diversity at the level of management and control. The proportions of black and female executive and non-executive directors are evaluated to complete the scoring for this sphere. Top companies are involved within communities and are committed to quality. This sphere of policy and accreditation accounts for the remainder of the total score. In gauging companies’ engagement and involvement within communities, we measure their total spend on corporate social investment activities relative to net profit. Companies are also judged on the existence of written policies regarding employment equity, skills development, health and safety, HIV/Aids, and the environment. Since the quality of policies is extremely difficult to quantify, we are required to rely on the number of written policies as an indicator. Companies with written policies in place in all five areas are awarded the maximum score for this item. The final criterion within this sphere, commitment to quality, is proxied by the number of SABS-approved accreditations held by companies.
RESULTS
Going forward, the objective is to continue to refine the criteria according to which performance within the three spheres is measured. Further, from 2016, the Topco Research Department will begin providing tailored benchmarking reports for interested participating companies based on the data collected for the Top500 rankings. These reports will allow a more nuanced consideration of a company’s strengths and weaknesses in terms of the data collected relative to other participating companies.
MornĂŠ Oosthuizen Deputy Director
Development Policy Research Unit University of Cape Town
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PRIMARY RESOURCES
1. COAL
2. GOLD
3. PLATINUM
Exxaro Coal (Pty) Ltd
Gold Fields Limited
Anglo American Platinum Limited
Sasol Mining (Pty) Ltd
Sibanye Gold Limited
Impala Platinum Holdings Limited
Glencore Operations South Africa (Pty) Ltd
AngloGold Ashanti Limited
Aquarius Platinum (South Africa) (Pty) Ltd
Anglo Operations Limited
Harmony Gold Mining Company Limited
Royal Bafokeng Platinum Limited
Continental Coal Limited
DRD Gold Limited
Lonmin PLC
Exxaro tops this sector yet again. The company experienced 10.9 percent growth in turnover. Sasot has the second highest annual turnover showing 10 percent with Glencore taking third place.
Gold Fields Limited wins top honours for the fifth time by virtue of its sheer size, turnover and employee efficiency, followed by Sibanye Gold Limited, placing second overall. With the second highest turnover growth rate at 16.8 percent. Anglo Gold Ashanti Limited takes third followed by Harmony Gold Mining.
5. DIVERSIFIED MINING
6. GAS
Kumba Iron Ore Limited
Anglo American South Africa Limited
The Petroleum, Oil and Gas Corporation Of South Africa (Pty) Ltd
Palabora Copper (Pty) Ltd
BHP Billiton Energy Coal South Africa Limited
Assmang Limited
Exxaro Resources Limited
Merafe Resources Limited
African Rainbow Minerals Limited
4. METALS AND MINERALS
Metmar Limited
Sasol Limited Afric Oil (Pty) Ltd African Oxygen Limited t/a Afrox Easigas (Pty) Ltd
For the fourth year running Kumba Iron Ore takes first position, with the highest turnover (almost double that of the second largest in this sector). Palabora Mining Company moved up to second spot from third with a turnover growth rate of 28.4 percent. In third place, Assmang Limited and Merafe Resources Limited moves up from last year and experiences the highest growth in turnover of 37.6 percent.
Diversified mining giant Anglo America South Africa Limited, is top in this sector, for the seventh year running. In second place with the highest turnover per employee is BHP Billiton SA Holdings Limited. The company with the best net profit after tax (NPAT) was Exxaro Resources Limited coming in at third.
SECONDARY BASIC INDUSTRIES
The Petroleum, Oil and Gas Corporation of South (PetroSA) is first with exceptional turnover growth of 36.2%. The second largest player for this period was Sasol Gas Limited, with a 19.1 percent growth in turnover from last year and strong productivity per employee. Afric Oil placed third with the highest turnover per employee, followed by Afrox in fourth.
7. DIAMOND MINING
1. SPECIALITY CHEMICALS
2. PAINT MANUFACTURERS
De Beers Consolidated Mines Limited
Sasol Limited
ICI Dulux (Pty) Ltd
Alexkor (SOC) Limited
Omnia Holdings Limited
Kansai Plascon (Pty) Ltd
Trans Hex Group Limited
AECI Limited
Dekro Paints (Pty) Ltd
Petra Diamonds Southern Africa
Rolfes Holdings Limited
Luxor Paints (Pty) Ltd
Rockwell Diamonds Incorporated
African Oxygen Limited t/a Afrox
De Beers takes the crown in this sector by virtue of turnover. Following is Alexkor. In third, Trans Hex Group Limited is to be noted for their high turnover per employee.
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Anglo American Platinum Limited has held top position for six consecutive years by virtue of their size, profitability and turnover. It is the largest company in the sector with an employee base of 50 000 with the highest turnover growth rate of 22.3 percent. Following in second is IMPLATS (which achieved the second highest turnover and second highest turnover growth). Aquarius Platinum South Africa and Royal Bafoken Platinum Limited take third and fourth place respectively.
For the sixth year running, Sasol Limited takes first position and is the most profitable company in the speciality chemicals sector. The company has the highest rate of turnover per employer. Omnia Holdings takes second from AECI with turnover growth of 23.7%. AECI moves down a place to third overall and takes the third highest growth in turnover at 15.3%. Following is Rolfes Holdings Limited, despite having the lowest turnover at the end of the financial year, they achieved the highest turnover in growth of 26 percent.
TOP500 / 7
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EDITION
ICI Dulux takes top honours, with the second highest rand growth as well as the highest turnover per employee. Kansai Plascon Africa falls down a place to second overall , followed by Dekro Paints in third.
TOP500 COMPANIES *
3. BUILDERS MERCHANTS
4. BUILDING & CONSTRUCTION MATERIALS
5. CEMENT
Massbuild (Pty) Ltd t/a Builders Warehouse, Builders Express, Builders Trade Depot
PG Bison Holdings (Pty) Ltd
Pretoria Portland Cement Company Limited
Afrimat Limited
AfriSam (South Africa) (Pty) Ltd
Corobrik (Pty) Ltd
Lafarge Cement (a division of Lafarge South Industries Africa (Pty) Ltd)
Italtile Ceramics Limited Cashbuild South Africa (Pty) Ltd Distribution & Warehousing Network Ltd (Dawn)
Mazor Group Limited Esor Limited
Iliad Africa Trading (Pty) Ltd Taking top honours in the builders merchant sector is Massbuild, trading as Builders Warehouse, Builders Express and Builders Trade Depot. Massbuild recorded the highest turnover, the highest rand growth, and the highest turnover growth. In second place with a turnover growth rate of 10.9 percent is Italtile Ceramics Limited. Third position goes to Cashbuild despite having the second highest turnover and Distribution & Warehousing Network Limited takes the fourth spot overall.
Repeating its number one performance from last year, PG Bison showed highest turnover, as well as strong efficiency per employee in their sector. Moving from fourth position last year, Afrimat Limited rises to number two. They have the second highest turnover growth of an exceptional 34.3 percent. Close rivals are Corobrik and Mazor (new entry), who achieved the highest turnover in growth of 91.5 percent.
Afrimat Limited Wearne Group of Companies Pretoria Portland Cement (PPC) takes the lead as the sector’s largest player and the company with the highest turnover. PPC has taken the number one spot five out of six times, recorded the highest turnover, the highest rand growth, and the highest turnover per employee. Afrisam South Africa has the second highest annual and second highest turnover per employee, whilst Lafarge Cement is awarded third place overall with a turnover growth of 34.3%.
6. CONSTRUCTION GROUPS
7. FORESTRY & FOREST PRODUCTS
8. STEEL
Aveng Africa Limited
Sappi Limited
ArcelorMittal South Africa Limited
WBHO Construction (Pty) Ltd
Mondi Limited
BSI Steel Limited
Murray & Roberts Holdings Limited
Hans Merensky Holdings (Pty) Ltd
Aveng Trident Steel (Pty) Ltd
Basil Read (Pty) Ltd
Komatiland Forests (Pty) Ltd
Hulamin Limited
Motheo Construction Group (Pty) Ltd As leader in this sector, Aveng Limited scores a 26.5 percent growth in turnover. WBHO Construction places second with an impressive 32.9 percent turnover growth, the highest in the sector. Placing third overall, Murray & Roberts Holdings Limited has the second highest turnover and the second highest turnover per employee. Basil Read clocked in at fourth. Worth noting is new entry, Motheo Construction Group in fifth place with the highest turnover growth of 56.9%.
GENERAL INDUSTRIALS
Evraz Highveld Steel & Vanadium Limited Sappi expands dissolving wood pulp capacity to over 1.3 million metric tons per year and takes top honours this year with the highest turnover in their sector and highest employee efficiency, followed by packaging and paper solutions company Mondi, firmly in second, with second highest turnover and the second highest turnover growth of 11.8 percent. Placing third overall, Hans Merensky Holdings has the highest rand growth and the highest turnover growth of 35.1 percent. Komatiland Forests takes fourth spot.
ArcelorMittal South Africa wins with the highest turnover, almost more than double that of the second highest earner. BSI Steel takes second place with an impressive turnover growth rate of 31.7 percent and the highest turnover per employee. Aveng Trident Steel takes third, and Hulamin Limited achieved fourth spot overall with the highest productivity per employee, and second highest turnover growth of 15.6 percent.
2. DIVERSIFIED INDUSTRIALS
3. ELECTRICAL EQUIPMENT
Denel SOC Limited
The Bidvest Group Limited
ACTOM (Pty) Ltd
SAAB Grintek Defence (Pty) Ltd
Imperial Holdings Limited
Power Technologies (Pty) Ltd
DENEL Vehicle Systems.
Barloworld Limited
Voltex (Pty) Ltd
Armaments Corporation of South Africa (ARMSCOR)
KAP Industrial Holdings Limited
Consolidated Infrastructure Group Limited
Thales South Africa Systems (Pty) Ltd
Remgro Limited
Ellies Holdings Limited
1. AEROSPACE AND DEFENCE
Denel rises to first place, taking over from BAE Land System, who won last year. Denel recorderd the highest annual turnover. Saab Grintek Defenceis is second with the highest turnover in growth of 25.6 percent. Denel Vehicle Systems is awarded third place, followed by Aramaments Corporation of South Africa. Overall the sector is averaging a turnover in growth of 9 percent.
RESULTS
As largest employer with second highest turnover, The Bidvest Group takes top honours. Following is Imperial Holdings, second largest employer with the highest turnover and hghest rand growth and in third place is Barloworld Limited, with second highest turnover per employee. KAP Industrial Holdings Limited has the highest growth in turnover of 30% for the period.
Moving from second position last year, ACTOM rises to number one as the largest manufacturer, solution provider, repairer and distributor of electro-mechanical equipment in Africa, Close second and third are Power Technologies and Voltex, followed by a new entry, Consolidated Infrastructure Group Limited with an exceptional growth in turnover of 31.1 percent.
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4. ELECTRONIC PRODUCTS
5. INDUSTRIAL PRODUCTS AND EQUIPMENT
6. HEAVY MACHINERY
Reunert Limited
Barloworld Equipment
Bell Equipment Limited
Allied Technologies Limited
Invicta Holdings Limited
Babcock Africa (Pty) Ltd
Siemens SA (Pty) Ltd
Hudaco Industries Limited
ELB Group Limited
Saab Grintek Technologies (Pty) Ltd
Winhold Limited
Komatsu Southern Africa (Pty) Ltd
Vektronix (Pty) Ltd
Austro Group Limited
CSE/Northmec
Overall the sector had an increase in annual turnover growth up from 3.3 percent to 11 percent. Reunert takes top spot again with the highest annual turnover. Allied places second with the highest rand growth and is followed by Siemens and Saab Grintek Technologies, with the second highest turnover growth. Vektronix SA takes fifth with a huge 58 percent in turnover growth.
For the third year running, Bell Equipment Limited takes the crown, with the highest turnover along with the highest rand growth. followed closely by Babcock Africa, with the second highest growth in turnover of 20 percent. Overall, the sector averaged a turnover in growth of 17 percent.
7. ENGINEERING GROUPS
8. CONSULTING ENGINEERS - MINING & INFRASTRUCTURE
9. MINING SERVICES
Aurecon South Africa (Pty) Ltd
Gibb (Pty) Ltd
Murray & Roberts Cementation (Pty) Ltd
Aecom South Africa (Pty) Ltd
SMEC South Africa (Pty) Ltd
Petmin Limited
WSP Group Africa (Pty) Ltd
Tenova Mining & Minerals (Pty) Ltd
Mmakau Mining (Pty) Ltd
Bosch Holdings (Pty) Ltd
Bigen Africa Services (Pty) Ltd
Sentula Mining Limited
SA Five Engineering (Pty) Ltd
Arup (Pty) Ltd
Manhattan Corporation (Pty) Ltd
Taking top honours in the engineering groups sector again, is Aurecon South Africa. They are the largest company in the sector. Aecom SA, with the highest turnover in growth of 9.9 percent, takes second position as a global provider of professional technical and management support services to a broad range of markets, including transportation, facilities, environmental, energy, water and government. Overall the sector experienced a turnover in growth of 9 percent.
CYCLICAL CONSUMER GOODS
Gibb is in first place for the second year running. The largest company in the sector in terms of turnover along with the top spot in turnover growth of 12 percent and with the highest rand growth. Climbing up from fourth last year to second this year is SMEC SA, followed by Tenova Mining & Minerals SA (Pty) Ltd, with Bigen Africa Services in fourth.
Maintaining its first position, Murray & Roberts has the highest turnover and is the largest employer in terms of size. New entry this year Petmin Limited, a dividendpaying cash-generating junior miner listed in Johannesburg,goes straight to second place with an impressive 61.4 percent turnover growth as well as the highest rand growth. It is followed by another new entry this year, Mmakau Mining (Pty) Ltd, with the second highest turnover and the second highest turnover growth.
1. AUTOMOBILES
2. COMMERCIAL VEHICLES
3. AUTOMOTIVE COMPONENTS
Mercedes-Benz South Africa (Pty) Ltd
UD Trucks Southern Africa (Pty) Ltd
Metair Investments Limited
Toyota South Africa Motors (Pty) Ltd
Hino South Africa (Pty) Ltd
Feltex Automotive
Volkswagen SA
Man Truck and Bus SA (Pty) Ltd
Mahle Behr South Africa (Pty) Ltd
Ford Motor Company
TATA Automobile Corporation SA (Pty) Ltd
Faurecia Exhaust Systems SA (Pty) Ltd
Nissan South Africa (Pty) Ltd
Iveco South Africa (Pty) Ltd
Torre Automotive (Pty) Ltd
Mercedes Benz South Africa has again taken the top spot in the automobile sector by virtue of its size, profitability and turnover, as well as the highest employment efficiency. It’s the largest company in the sector with a turnover double the size of any other player. The second largest player for the period was Toyota South Africa Motors.
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Taking first position in the Industrial Products and Equipment sector is Barloworld Equipment. Following is Invicta Holdings Limited, with the highest turnover growth of 35 percent.
T O P 5 0 0 / 7 th E D I T I O N
Making its way up to the top of the sector is UD Trucks Southern Africa (Pty) Ltd Following in second is Hino South Africa, with the second highest turnover growth of 14.3 percent, as well as the highest rand growth.
Metair Investments Limited has the highest turnover in the sector, double that of the second highest earner. Coming up from fourth spot in the last issue, Feltex Automotive moves to second in the sector with an impressive 50% in turnover growth, as well as the second highest turnover.
TOP500 COMPANIES
RESULTS
NON-CYCLICAL CONSUMER GOODS 4. HOUSEHOLD APPLIANCES
1. BEVERAGES – SOFT DRINKS
Defy Appliances (Pty) Ltd
Amalgamated Beverage Industries
The South African Breweries (Pty) Ltd
Ellies Holdings Limited
Coca Cola (Pty) Ltd
Namibia Breweries Limited
Home of Living Brands (Pty) Ltd
Pioneer Foods Groceries (Pty) Ltd
Brandhouse Beverages (Pty) Ltd
Nu World Holdings Limited
Appletiser SA (Pty) Ltd
Sedibeng Brewery (PTY) Ltd
Whirlpool South Africa (Pty) Ltd
Quality Beverages 2000 (Pty) Ltd
Halewood International SA (Pty) Ltd
Taking top honours, winning five out if six times, Defy is the largest company in the sector by virtue of its turnover. Following in second is Ellies Holdings Limited with a turnover growth rate at 16 percent - the second highest turnover. Overall the sector averaged an 8% turnover growth.
Amalgamated Beverages Industries, a division of South African Breweries, also a supplier of Coca-Cola products has maintained its ground and takes top honours again in the beverages /soft drinks sector boasting a turnover almost six times higher than the second highest earner. Coca-Cola takes second place, followed by Pioneer Foods Groceries (Pty) Ltd with an exceptional growth in turnover of 33.3 percent.
2. BEVERAGES – BREWERIES
SAB is one of the global leaders in the sector and the group took the top spot again – largely due to its dominant size with the highest employee efficiency. Namibian Breweries takes second with the highest growth in turnover of 10.3 percent. Brandhouse Beverages and Sedibeng Brewery take third and fourth positions respectively.
3. DISTILLERS AND VINTNERS
4. AGRICULTURE
5. FARMING
Distell Limited
Senwesbel Limited
RCL Foods
KWV South Africa (Pty) Ltd
Afgri Operations Limited
Astral Operations Limited
Orange River Cellar Co-op Limited
GWK Limited
Sovereign Food Investments Limited
DGB (Pty) Ltd
Vrystaat Corporation Limited (VKB)
Country Bird Holdings Limited
Omnia Nutriology Distell boasts a turnover double the size than that of its competitors and is also the largest company in its sector. KWV South Africa places second and is followed by Orange River Wine Cellars Co-operative Limited in third with the highest turnover growth. The industry as a whole showed growth in turnover averaging at 10 percent.
Senwesbel Limited is market dominant and our sector leader again this year. The company holds the highest turnover – a key mark of a well-managed company, with the highest turnover per employee for the year. A close contender is Afgri Limited, with the second highest turnover and the highest rand growth. Worth noting is GWK limited with a 29 percent growth in turnover.
RCL takes first place again. The company has the highest turnover and strong employee efficiencies with an impressive 28.7% growth in turnover, and is the second largest employer. Astral Operations Limited holds onto second place and is the largest employer in the sector with the second largest turnover, along with 4.5 % growth in turnover. Sovereign Food Investments Limited is noted for the highest turnover per employee.
6. FISHING
7. DAIRY PRODUCTS
8. FOOD PROCESSING GROUPS
Oceana Group Limited
Clover SA (Pty) Ltd
Tiger Brands Limited
Sea Harvest Corporation Limited
Parmalat SA (Pty) Ltd
Pioneer Food Group (Pty) Ltd
Premier Fishing SA (Pty) Ltd
Faircape Dairies (Pty) Ltd
AVI Limited
Irvin & Johnson Limited
DairyBelle (Pty) Ltd
Rhodes Food Group (Pty) Ltd Crookes Brothers Limited
Marpro Trawling Oceana Group Limited has the highest rate of turnover per employee and is also the largest in the sector. The company had a positive 10 percent in turnover growth. Sea Harvest takes second place with the highest turnover growth of 19.4 percent followed by Premier Fishing SA in third and Irvin and Johnson in fourth.
Clover has maintained its ground for another year as the largest player in the field with the second highest employee efficiencies. Closely followed by Parmalat South Africa with the second highest turnover and the highest turnover per employee for the year. Fair Cape Dairies comes in at number three, followed by DairyBelle.
Tiger Brands takes first position by virtue of its sheer size, profitability and turnover. It is the largest company in the sector and increased its turnover growth by 19.1 percent from last year with strong productivity per employee. Achieving second position is Pioneer Food Group with the second highest turnover in the sector.
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9. SUGAR
10. PACKAGING
11. CONSUMER ELECTRONICS
Tongaat Hulett Limited
Nampak Limited
LG Electronics SA (Pty) Ltd
Illovo Sugar Limited
Mpact Limited
Samsung Electronics South Africa (Pty) Ltd
TSB Sugar RSA Limited
Transpaco Limited
Hisense SA Sales Holdings SA (Pty) Ltd
Bowler Metcalf (Pty) Ltd
Philips South Africa (Pty) Ltd
Consol Glass (Pty) Ltd With an impressive turnover growth of 48.5 percent and a turnover double that of the other companies, Tongaat dominates the market and is our sector leader for the fourth time in a row. Second place is awarded to Illovo Sugar Limited with the second highest turnover, followed by TSB Sugar RSA Limited.
Top of the packaging sector, Nampak’s turnover is double that of the second contender Mpact Limited. The company is also the largest employer. Mpact Limited is noted for the second highest turnover with strong employment efficiency, followed by new entry Transpaco Limited with the second highest turnover growth of 7.6%.
LG Electronics has the highest turnover growth of 9.4 percent in the sector, followed by Samsung. Hisense SA Sales Holdings takes third place and Philips South Africa is in fourth.
12. PERSONAL PRODUCTS
13. BEAUTY PRODUCTS
14. PHARMACEUTICALS
Unilever South Africa (Pty) Ltd
Revlon South Africa (Pty) Ltd
Aspen Pharmacare Holdings Limited
Amka Products (Pty) Ltd
Estee Lauder Companies (Pty) Ltd
Adcock Ingram Holdings Limited
Kimberly-Clark South Africa (Pty) Ltd
L'Oreal South Africa Holdings (Pty) Ltd
Pfizer Laboratories SA (Pty) Ltd
Beige Holdings Limited
Annique Health and Beauty (Pty) Ltd
Cipla Medpro South Africa Limited
HPC (a division of Tiger Brands Ltd)
Avon Justine South Africa (Pty) Ltd
Litha Healthcare Group Limited
Unilever has the greatest turnover - triple that of the other companies, also scoring the highest in turnover per employee, the mark of a well-managed company in our rankings. Amka Products scores second highest growth in turnover of 9.1 percent for the year. Kimberly-Clark South Africa has the fourth highest employee efficiencies.
Revlon South Africa ascends to first postion with the highest net profit after tax (NPAT), as well as second highest rand growth. Estee Lauder takes second with the highest turnover, followed by L’Oréal in third overall.
Aspen Pharmacare Holdings Limited, has kept its title as the leading multinational South African holding company for pharmaceutical concerns, and the largest drug company in Africa. They have the highest turnover and are the largest employer, along with the second highest growth in annual turnover of 19.8 percent for the year. Following in second is Adcock Ingram Holdings Limited, a company that manufactures, markets and distributes a wide range of healthcare products with the third highest growth in turnover of 18.4% for the period, as well as the second highest rand growth. Pfizer Laboratories SA comes in at number three.
TERTIARY
CYCLICAL SERVICES 1. SHOPPING CENTRES Sandton City Shopping Centre Canal Walk Shopping Centre Menlyn Park Shopping Centre Victoria & Alfred Waterfront
2. DIRECT RESPONSE MARKETING
3. BEE ACCREDITATION AGENCIES
Homechoice Holdings Limited
Honeycomb Transformation (Pty) Ltd
Glomail (Pty) Ltd
Empowerdex (Pty) Ltd
Homemark (Pty) Ltd
EmpowerLogic (Pty) Ltd
Verimark Holdings Limited
AQRate (Pty) Ltd
Eastgate Shopping Centre
Sandton City Shopping Centre has made it to the top again, with over 300 leading local and international retailers. Moving up from fourth position last year to second is Canal Walk Shopping Centre in Cape Town, with a total retail area of 141,000-square-metres.
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National Empowerment Rating Agency (Pty) Ltd (NERA) Prime position in the direct response marketing sector goes to new entry Homechoice Holdings Limited. The company has the biggest turnover, with the highest employee efficiencies. Homechoice recorded the highest growth in turnover of 15.9 percent. Second position goes to Glomail followed by Homemark.
At number one is Honeycomb Transformation (Pty) Ltd, pushing the highest profitability per employee, and highest turnover in growth of 22.8%. Empowerdex takes second, with the second highest turnover. EmpowerLogic and AQRate take third and fourth spot respectively.
TOP500 COMPANIES
4. DIVERSIFIED RETAILERS
5. RETAIL - SOFT GOODS
6. FURNITURE RETAILERS
Shoprite Holdings Limited
Edcon Holdings (Pty) Ltd
JDG Trading (Pty) Ltd
Massmart Holdings Limited
Truworths International Limited
Lewis Group Limited
Woolworths Holdings Limited
Pepstores
OK Furniture
Clicks Group Limited
The Foschini Group Limited
House & Home Furniture SA
Pick 'n Pay Stores Limited
Mr Price Group Limited
Shoprite attains the title of the sector winner with the highest turnover in the sector. Massmart takes top spot for employee efficiency followed by Woolworths with a 22.9 percent growth in turnover for the period.
Edcon Holdings has the highest turnover and 3.3 percent growth in turnover for the period, followed by Truworths International Limited with a 22.4 percent in turnover growth. Taking third this year, Pepstores scored the second highest turnover growth of 18.8% with the highest employee efficiencies. Foschini moves down two places to fourth followed by Mr Price Group Limited.
Winning the furniture retail component is JDG Trading. The company has the biggest turnover, and has the highest employee efficiencies. Lewis Group is in second position, followed by OK Furniture, a trading division of Shoprite Checkers, with a 4.8 percent turnover growth as well as third highest turnover. Taking fourth is House & Home Furniture SA with the highest turnover in growth of 12.5 percent.
9. HOTELS
7. SPORTS APPAREL
8. GAMING AND LEISURE
Nike South Africa (Pty) Ltd
Sun International Limited
Tsogo Sun Hotels
Adidas SA (Pty) Ltd
Tsogo Sun Holdings (Pty) Ltd
City Lodge Hotels Limited
Puma Sports Distribution (Pty) Ltd
Peermont Global (Pty) Ltd
The Radisson Blu Waterfront
HI-TEC Sports Distributors (Pty) Ltd
Gold Circle (Pty) Ltd
Peermont Hotels & Resorts
Reebok South Africa (Pty) Ltd
Phumelela Gaming & Leisure Limited
Legacy Hotels and Resorts (Pty) Ltd
Nike holds the number one position in the sports apparel sector, followed closely by Adidas. Puma takes third, followed by HI-TEC Sports Distribution (Pty) Ltd.
Sun International has taken first place for five consecutive years by virtue of its sheer size, profitability and turnover. It is the largest company in the sector and increased its turnover by 8.1 percent.
RESULTS
Top in the hotels sector is a Tsogo Sun Hotels, with 45 years of experience, it is the leading hotel group in Africa. They have the highest turnover, along with the highest growth in turnover of 17.9 percent.
10. TRAVEL AND TOURISM
11. BROADCASTING CONTRACTORS
12. MEDIA GROUPS
Flight Centre SA (Pty) Ltd
Multichoice South Africa Holdings (Pty) Ltd
Naspers Limited
Club Travel SA (Pty) Ltd
eNCA (Pty) Ltd
Kagiso Media Limited
South African Travel Centre
South African Broadcasting Corporation Limited (SABC)
Times Media Group Limited
Cullinan Holdings Limited
Primedia (Pty) Ltd
Caxton & CTP Publishers & Printers Limited
Tourvest Holdings (Pty) Ltd
African Media Entertainment Limited
Primedia (Pty) Ltd
Flight Centre takes the lead this year, experiencing the highest turnover. Club Travel follows in second, with South African Travel Centre in third up from fourth last year with an exceptional 33.3 percent in turnover growth. Cullinan Holdings takes fourth during this period.
MultiChoice South Africa's activities include the operation of Pay-Television and internet subscriber platforms. The MultiChoice South Africa group includes the digital satellite Pay-Television business (DStv), which has been in operation since 1995. They have taken first position in the broadcasting sector – a positon that they have held for five consecutive years.
In the media group sector, Naspers Limited has the highest turnover, it is the largest in terms of size, along with the highest efficiencies per employee. Naspers saw a 27.3 percent growth over the period. The highest growth was by Kagiso Media, with an impressive 42.8 percent - they take second place and Times Media is third moving down one spot from last year.
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13. MEDIA AGENCIES
14. BRANDING AND DESIGN AGENCIES
Omnicom Media Group SA (Pty) Ltd)
EXP SA
Media Edge CIA (Pty) Ltd
Switch Group (Pty) Ltd
Network BBDO (Pty) Ltd
Thirty Four Degrees South Marketing (Pty) Ltd
The MediaShop (Pty) Ltd
The Brand Union (Pty) Ltd
Initiative Media (Pty) Ltd
Grid Worldwide Branding & Design (Pty) Ltd
Omnicom Media Group SA retains its title this year with the highest turnover, and strong employee efficiencies. Media Edge CIA have the highest turnover per employee.
Retaining number one position, Exp SA is still the largest in the branding and design sector. They have the largest turnover and highest efficiencies. The Switch Group follows in second place, with second highest turnover, along with second highest turnover per employee With the highest growth in turnover of 42.2 percent is ThirtyFour Degrees South Marketing.
15. ADVERTISING Ogilvy & Mather South Africa TBWA South Africa (Pty) Ltd J Walter Thompson Company SA (Pty) Ltd King James Advertising Cape Town (Pty) Ltd Saatchi & Saatchi (Pty) Ltd
Ogilvy & Mather have again taken number one position in the advertising sector. With the highest turnover, Ogilvy is also the most efficient in terms of the highest turnover per employee. TBWA attains second place with second highest turnover, second highest profitability. J Walter Thompson takes third. Also highly commended is King James which had the highest growth in turnover of 18.2 percent
16. OUTDOOR MEDIA
17. FOOD SERVICES
18. LEGAL SERVICES
Wideopen Platform (Pty) Ltd
Bidvest Food Services (Pty) Ltd
Cliffe Dekker Hofmeyr Inc
Continental Outdoor Media (Pty) Ltd
Air Chefs SOC Limited
Bowman Gilfillan Incorporated
Primedia Outdoor
Compass Group Southern Africa (Pty) Ltd
Werksmans Incorporated
Outdoor Network Ltd t/a Outdoor Network
RoyalMnandi Food Service Solutions (Pty) Ltd
Webber Wentzel
Feedem Pitseng (Pty) Ltd
Norton Rose Fulbright
In this sector companies have maintained their rankings from the previous year. For the second time in a row, Wideopen Platform steps up as number one and manages the highest rates in turnover per employee. Continental Outdoor Media remains at number two, with the second highest employee efficiencies, and Primedia Outdoor takes third.
19. EXHIBITION AND CONFERENCE FACILITIES
ICC Durban (Pty) Ltd Cape Town International Convention Centre Company (Pty) Ltd (CTICC)
A leader in the food services sector is Bidvest Food Services, with highest turnover and highest employee efficiencies. Air Chefs SOC take second place; Compass Group Southern Africa is the largest employer with Royalmnandi having the highest growth in turnover of 30.6 percent.
20. BUSINESS PROCESS OUTSOURCING Innovation Group (Pty) Ltd Syntell (Pty) Ltd Aegis BPO Holdings South Africa (Pty) Ltd
CSIR International Convention Centre
Direct Channel Holdings (Pty) Ltd
Gallagher Convention Centre (Pty) Ltd
Global Telesales (Pty) Ltd
Cliffe Dekker Hofmeyr Incorporated takes first position with the highest growth in turnover of 26.7percent and strong employee efficiencies. Moving from fifth last year to second, Bowman Gilfilan has the highest turnover. Werksmans Incorporated are to be noted for having the highest turnover per employee.
21. RESEARCH COMPANIES AC Nielsen Marketing and Media (Pty) Ltd TNS Research Surveys (Pty) Ltd Ipsos SA (Pty) Ltd African Response (Pty) Ltd Citizen Surveys (Pty) Ltd
Sandton Convention Centre Best in the sector with an impressive turnover growth rate of 51 percent, is ICC Durban, winner of the 2014 Africa's Leading Meetings and Conference Centre Award. Cape Town International Convention Centre takes second spot again with the second highest turnover, along with the third highest growth in turnover of 12.4 percent.
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T O P 5 0 0 / 7 th E D I T I O N
The Innovation Group takes the top ranking again this year. It has the sector’s highest turnover, along with the second highest growth in turnover of 15 percent. The field was tight with two strong players Syntell and Aegis Outsourcing South Africa vying for second spot. Syntell took the second place, with the second highest turnover, and Aegis BPO Holdings South Africa, takes third spot with the highest growth in turnover of 75 percent.
Coming up from second in the last issue, AC Nielsen takes first place with the highest turnover and highest rand growth. TNS drops down a place to second overall with the second highest turnover. Third place winner is Ipsos SA, followed by African Response.
TOP500 COMPANIES
RESULTS
22. RECRUITMENT GROUP
23. WASTE MANAGEMENT
24. CORPORATE SECURITY SERVICES
Adcorp Holdings Limited
Enviroserv Waste Management (Pty) Ltd
Bidvest Protea Coin Group (Pty) Ltd
The Workforce Holdings Limited
Interwaste Holdings Limited
Fidelity Security Group (Pty) Ltd
Kelly Group Limited
The Waste Group (Pty) Ltd
G4S Secure Solutions SA (Pty) Ltd
Primserv Group Limited
Enforce Security Solutions (Pty) Ltd
ADvTECH Ltd
Bidvest Magnum Group
Adcorp Holdings is in first place with its superior turnover and its solid growth in turnover of 34 percent for the year, along with the highest efficiencies per employee. The second highest turnover was from Workforce. Coming in third is Kelly Group, followed by new entry, Primserv Group with the second highest growth in turnover of 21.6 percent.
Enviroserv Holdings takes top again. With the highest turnover within its sector, it is the most efficient with the highest productivity per employee, closely followed by Interwaste, up from the third spot last year, with the second highest growth in turnover of 23.2 percent. The Waste Group is third overall.
In the Corporate Security Services sector, The Protea Coin Group has the highest turnover, is second largest in terms of size and has the second highest turnover per employee. Fidelity Security Services is awarded second place - and is the largest employer - followed by G4S Secure Solutions in third. Enforce Security Solutions takes fourth.
25. HYGIENE SERVICES
26. PRIVATE SECURITY SERVICES
27. AIRLINES
Sanitech
ADT Security (Pty) Ltd
South African Airways (SAA)
Bidvest Steiner
Securitas SA Holdings (Pty) Ltd
Comair Limited
Rentokil Initial (Pty) Ltd
Bidvest Magnum Shield Security Services (Pty) Ltd
Mango Airlines (Pty) Ltd
Supercare Services Group (Pty) Ltd
Chubb Fire and Security SA (Pty) Ltd
SA Express Airways (Pty) Ltd
Servest Hygiene (Pty) Ltd
Command Security Services SA (Pty) Ltd
SA Airlink (Pty) Ltd
Sanitech takes the lead in the hygiene services sector, with the highest turnover and highest turnover per employee. Close competitors are Bidvest Steiner, with the second highest employee efficiencies and Rentokil Initial taking third position.
28. CAR HIRE Avis Budget Bidvest Car Rental (Pty) Ltd Europcar First Car Rental Hertz Car Hire
Maintaining number one position this year is Avis Budget. It is the largest employer and recorded the highest turnover in the period, along with the highest productivity levels and the highest growth in turnover of 15.6 percent. Budget Rent-A-Car South Africa takes second. Europcar takes third place with the highest employee efficiencies.
ADT Security is in first place for the third year running. It has the highest turnover and grew it 32.3 percent in the period. It is the second largest employer, with strong employee productivity. Securitas SA Holdings follows in second with a 14.9 percent growth in turnover (second highest in the sector). Bidvest Magnum Shield Security Services and Chubb Fire Security (SA) take third and fourth spot respectively.
South African Airways is market dominant and our sector leader for the third year running - with a strong turnover, it is also the largest company in the sector with strong employee efficiency. Comair experienced the highest growth in turnover at 28.4 percent whilst South African Express Airways experienced the third highest turnover per employee.
29. FLEET MANAGEMENT & VEHICLE TRACKING
30. FREIGHT FORWARDING
Amasondo Fleet Services (Pty) Ltd
Bidvest Panalpina Logistics
Mix Telematics Limited
Kuehne-Nagel (Pty) Ltd
Fleet Africa
Hellmann Worldwide Logistics (Pty) Ltd
DigiCore Holdings Limited
Savino Del Bene (South Africa) (Pty) Ltd
Avis Fleet Services
Barlow Logistics Africa (Pty) Ltd
At the top of the sector , having climbed from second place last year, is Eqstra Holdings Limited. Providing services on a global scale, the company has the greatest turnover. Moving up from fourth position last year Mix Telematics takes second with the highest growth in turnover of 15 percent. Fleet Africa moves down to third whilst having the highest turnover overall.
For the third year running, Bidvest Panalpina Logistics is the leader in the sector, recording the highest turnover and is the sectors largest employer. Kuehne-Nagel is noted for the highest growth in turnover, followed by Hellman Worldwide Logistics.
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31. COURIER SERVICES Skynet Worldwide Express and Logistic Solutions Aramex South Africa (Pty) Ltd DHL Worldwide Express
Dawn Wing Logistics (Pty) Ltd TNT Express Worldwide (South Africa) (Pty) Ltd Skynet Worldwide Express is now the largest independently operated distribution network in the world. It is the largest player in the sector, both in terms of employee size and overall turnover. Up from third and taking second place with the second highest growth in turnover of 7.8 percent, along with strong employee efficiencies is Aramex South Africa. Coming in third is DHL Express with the highest turnover per employee.
32. ROAD FREIGHT Imperial Logistics Trencor Limited Super Group Holdings (Pty) Ltd Cargo Carriers Limited Value Logistic Limited
Ranking first once again is Imperial Logistics. with the highest turnover and the highest rand growth. New entry, Trencor Limited, had the highest turnover in growth of 44.7 percent and was highest in terms of employee efficiencies. Super Group moved to third spot with the second highest turnover. On the overall the sector is doing well, averaging growth in turnover of 20.7 percent.
NON-CYCLICAL SERVICES
33. SHIPPING Grindrod Limited Mediterranean Shipping Company (Pty) Ltd Toll Global Forwarding (SA) (Pty) Ltd MOL South Africa (Pty) Ltd Maersk (Pty) Ltd
In the Shipping sector Grindrod takes the top placing again with the highest annual turnover. Second, with the highest growth in turnover is Mediterranean Shipping Company with an exceptional 35.6 percent.
2. MEDICAL AID ADMINISTRATORS
3. HOSPITAL MANAGEMENT & LONG-TERM CARE
Discovery Medical Scheme (Pty) Ltd
Discovery Health (pty) Ltd
Netcare Limited
Bonitas Medical Fund
Metropolitan Health (Pty) Ltd
Medi-Clinic Southern Africa Limited
Medihelp Medical Scheme
Medscheme Holdings (Pty) Ltd
Life Healthcare Group Holdings Limited
Fedhealth Medical Scheme
Allcare Administrators (Pty) Ltd
Lenmed Health
Bestmed Medical Scheme
Sechaba Medical Solutions (Pty) Ltd
Melomed Hospital Holdings Limited
As the biggest company in terms of turnover, Discovery Health maintains the top position in this sector. It has grown its turnover at 25 percent for the year. Bonitas Medical Fund enters the top five in second, boasting a turnover growth of 20.2 percent.
A sector leader in two areas, Discovery Health again attains first place. It is the largest company in the field, with a beneficiary’s percentage of 52 percent of the market share. Metropolitan Health takes second place with a 48.5 percent beneficiary market share.
Netcare has held first position for the seventh time. It is the largest player with the highest turnover, and it increased turnover by 10.4 percent over the period. They are also the biggest employer in the sector. Medi-Clinic Southern Africa Limited has the highest employee efficiencies. The highest growth in turnover came from Lenmed Health at an exceptional 52.8 percent.
4. FOOD RETAILERS
5. TELECOMS (WIRELESS)
1. MEDICAL AID SCHEMES
Shoprite Holdings Limited Woolworths Holdings Limited Spar Group Limited
Vodacom Group Limited MTN Group Limited
6. TELECOMS (FIXED-LINE) Telkom SA SOC Limited Neotel (Pty) Ltd
Cell C (Pty) Ltd
Pick n Pay Stores Limited Shoprite is the largest employer with 78 000 employees and records the second largest growth in turnover of 11.8 percent for the year in review. Woolworths, up two place from fourth, is second. They reflect the highest turnover growth off 22.9 percent. Spar is third, with the highest employee efficiencies.
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Vodacom's superior turnover and solid growth in turnover for the year, along with the highest efficiencies per employee, resulted in the company attaining top placing. Despite a decline in turnover for the period, MTN takes second with the second highest turnover.
In the telecommunication (fixed) sector Telkom is top, dominating the market with its superior turnover and strong efficiencies.
TOP500 COMPANIES
UTILITIES 1. WATER
FINANCIAL
RESULTS
1. BANKS
2. SHORT-TERM INSURANCE
Rand Water
The Standard Bank of South Africa Limited
Santam Limited
Johannesburg Water (Pty) Ltd
FirstRand Limited
The Hollard Insurance Company Ltd
Umgeni Water
Barclays Africa Group Limited
Mutual & Federal Insurance Company Limited
Mhlathuze Water
Nedbank Group Limited
AIG South Africa Limited
Sedibeng Water
Capitec Bank Limited
Zurich Insurance Company South Africa Limited
Standard Bank wins as this year’s top banking company for the period under review with the highest turnover, and the strongest employee efficiencies. The highest return on equity comes from FirstRand Bank Limited, with the lowest cost to income ratio.
Santam Limited maintain the position they have held for five consecutive years.They are the biggest player in the market with the highest turnover and the second highest growth in turnover of 6.4 percent during this period. The Hollard Insurance Company Limited and Mutual & Federal Insurance Company Limited take third and fourth spot respectively.
With the highest turnover, as well as being the largest company in terms of employees, and strong employee efficiencies Rand Water takes first place. Close second is Johannesburg Water with similar staff count and turnover and some stiff competition for the leading position in the industry, followed by Umgeni Water.
3. LIFE INSURANCE
4. INVESTMENT HOLDING COMPANIES
Old Mutual Life Assurance Company (South Africa) Limited
Remgro Limited
MMI Holdings Limited Sanlam Limited Liberty Holdings Limited Hollard Life Assurance Company Limited Old Mutual has achieved crown status. With strong rand turnover per employee, the company continues to show healthy net profits and efficiencies across their operations. MMI Holdings experienced the highest growth in turnover with an exceptional 45.9 percent, while Liberty has the highest profitability per employee.
Hosken Consolidated Investments Limited Royal Bafokeng Holdings (Pty) Ltd Sekunjalo Investments Limited Brimstone Investment Corporation Limited
Remgro achieves first again with the highest turnover overall. Turnover growth for the investment holding companies sector averages around 15.9 percent, and Royal Bafokeng shows the highest turnover per employee.
5. REAL ESTATE HOLDINGS & DEVELOPMENT Growthpoint Properties Limited Redefine Properties Limited Vukile Property Fund Limited Pareto Limited Capital Properties Limited
With the highest turnover, Growthpoint Properties has been the winner of this sector for 2 consecutive years. The company is also the largest listed company with current market capitalisation of R70- billion. Redefine is commended for having the highest growth in turnover of 21 percent.
6. AUCTION HOUSES
7. ASSET MANAGEMENT
8. ACCOUNTING AND CONSULTING
Strauss & CO
Coronation Fund Managers Ltd
PricewaterhouseCoopers South Africa
Claremart Auctioneers (Pty) Ltd
Old Mutual Investment Group (South Africa) (Pty) Ltd
KPMG South Africa (Pty) Ltd
Aucor Sandton (Pty) Ltd
Stanlib Limited
Deloitte
Stephan Welz & Co
Allan Gray (Pty) Ltd
Grant Thornton THL Consulting (Pty) Ltd
Consolidated Auctioneers
Investec Limited
Ernst & Young Advisory (Pty) Limited
Coming up from third spot in the last issue, Strauss & Co is number one in its sector. They have the highest turnover per employee and had a positive 19.3 percent growth in turnover, followed by ClareMart Auctioneers and Aucor Sandton.
For the second time in a row, Coronation Fund Managers steps up as number one with an astounding 84 percent growth in turnover, followed by Old Mutual Investment Group with a 21.7 percent in turnover growth. The sector as a whole had a good year, with all participating firms increasing in turnover.
PricewaterhouseCoopers, the largest professional services firm in the world, takes top position once again this year, having the greatest annual turnover of the sector. KPMG has the second highest growth in turnover of 11.5 percent. Followed by Deloitte and Grant Thornton THL Consulting (Pty) Ltd. respectively.
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INFORMATION TECHNOLOGY
1. COMPUTER HARDWARE
2. TELECOMS (EQUIPMENT)
3. IT COMPONENT DISTRIBUTORS
Mustek
Ericsson South Africa (Pty) Ltd
Pinnacle Holdings Limited
IBM South Africa (Pty) Ltd
Siemens (Pty) Ltd
Sahara Computers (Pty) Ltd
Dell Computer (Pty) Ltd
Tellumat (Pty) Ltd
Advanced Channel Technologies
Hewlett-Packard South Africa (Pty) Ltd
Alcatel-Lucent South Africa (Pty) Ltd
Rectron (Pty) Ltd
Sahara Computers (Pty) Ltd
Altech Alcom Matomo (Pty) Ltd
Incredible Connection
This year Mustek takes the crown, with the highest growth in turnover of 16.3 percent, second highest turnover with strong employee productivity. IBM is in second place with the highest turnover, followed by Dell.
Ericsson South Africa takes the lead again with the highest employee productivity rates, along with the second highest turnover. Coming second, Siemens SA has the highest turnover.
6. TELECOMMUNICATION SOLUTIONS
4. OFFICE AUTOMATION
5. INFORMATION TECHNOLOGY GROUPS
Nashua Limited
Dimension Data (Pty) Ltd
Vox Telecommunications (Pty) Ltd
Bytes Document Solutions (Pty) Ltd
Bytes Technology Group South Africa (Pty) Ltd
Jasco Electronics Holdings Limited
Itec Group SA (Pty) Ltd
Business Connexion (Pty) Ltd
Westcon SA (Pty) Ltd
Kyocera Document Solutions South Africa (Pty) Ltd
EOH Holdings Limited
Tellumat (Pty) Ltd
Samsung Nac (Copiers)
Datatec Limited
Huge Telecom (Pty) Ltd
Nashua takes top spot with the highest turnover, while Bytes Document Solutions is at second and Itec comes in at third.
7. INTERNET SERVICE PROVIDERS
Dimension Data leads once again, for the period in review, with the highest turnover and strong employee efficiencies. The highest growth in turnover comes from Bytes technology South Africa at 14.9 percent. With the highest employee productivity, Business Connexion (Pty) Ltd comes in at a close third place.
8. BUSINESS SOFTWARE SOLUTIONS
Internet Solutions
Microsoft SA (Pty) Ltd
MWEB Connect (Pty) Ltd
ENRA Technologies CC
MTN Business Solutions (Pty) Ltd
T-Systems SA (Pty) Ltd (TSSA)
iBurst (Pty) Ltd
SAP South Africa (Pty) Ltd Sage South Africa (Pty) Ltd
Internet Solution has achieved first position, with the highest turnover and strong turnover per employee, followed closely by MWEB Connect with the highest turnover in growth of 3.7%. MTN Business Solutions takes third.
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Once again Pinnacle Technology Holdings Limited, one of the largest information and communication technology companies in Africa, takes the lead.They have the highest turnover - and highest turnover growth of 12.9 percent. Following in second place is Sahara Computers.
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In the Business Software Solutions sector, Microsoft ranks first with the highest turnover. ENRA Technologies CC, in second place , has the highest profitability per employee. New entry, T-Systems SA (Pty) Ltd (TSSA) takes third spot with strong employee efficiencies, along with the second highest turnover.
Coming from fourth position in the last issue, Vox Telecommunications is number one in its sector with the highest turnover, second highest turnover per employee and a positive 11.9 percent growth in turnover. New entry, Jasco Electronic Holdings enters the top five in second, with the highest growth in turnover of 16.5% and the second highest turnover. Westcon South African takes third place with impressive employee efficiencies.
TOP500 COMPANIES
EDUCATION
9. SERVICE DELIVERY (SOC) Eskom Holdings Limited Transnet Limited Airports Company South Africa (ACSA) Telkom SA SOC Limited Air Traffic and Navigation Services Company First in the service delivery sector, Eskom Limited has the highest turnover, almost three times that of the second contender. It is the second largest in terms of size and takes the top position, with the highest employee productivity. Transnet Limited, the largest employer with 60 000 employees, has the second largest turnover and takes second place. Airports Company South Africa Limited performed well with a 16.1 percent turnover growth, placing third best in the sector overall.
1. UNIVERSITIES University of Cape Town (UCT) University of Stellenbosch University of South Africa (UNISA) University of Witwatersrand University of KwaZulu-Natal Taking first place this year in the university sector is the University of Cape Town, with strong financial performance and the highest turnover per employee.
RESULTS
2. BUSINESS SCHOOLS Gordon Institute of Business Science (GIBS) Graduate School of Business - University of Cape Town (GSB) Wits Business School - Universsity of Witwatersrand UNISA Graduate School of Business Leadership (SBL) University of Stellenbosch Business School (USB) Gordon Institute of Business Science (GIBS) has moved up from being ranked third last year to top place this year. It takes the honour with strong financial results and profitability, along with the highest turnover over the period.
* Results from financial period 2013 - 2014 Outcomes are dependent on data received
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BIDVEST PROTEA COIN
COMPANY PROFILE
PETRUS VAN NIEKERK CHIEF EXECUTIVE OFFICER
VALUE PROPOSITION . Bidvest Protea Coin, a proud member of Bidvest Group, is known and respected for its ability to provide an end-to-end security service that is tailored to the specific needs and requirements of its customers. By unlocking synergies in each of its operations the company is able to provide unique security solutions across South Africa to customers in the financial, mining, industrial, retail, educational, aviation and gaming sectors, as well as residential estates and corporate business parks. These security solutions include the ability to provide physical guarding by a complement of some 24 000 officers trained to best serve a specific requirement. In addition, innovative in-house technical and hi-end fencing solutions add further value to protection and detection efforts – all backed by 24-hour control centres and maintenance technicians. Our extensive experience combined with a full suite of investigators and information analysts, tactical response units, vehicle tracking and recovery, canine and equestrian units and air-wing, provide the solution to the constantly changing operational landscape and its security demands. The Bidvest Protea Coin philosophy ensures security excellence and is based on responsiveness to client needs through its reliance on suitably trained and committed personnel, active day-to-day management involvement and an individualised approach to each customer. The company is humbled by being awarded the accolade as the No.1 Company in the security sector for 2014 and 2015.
COMPANY INFORMATION Employees: ±23 342 (South Africa) Head Office: Centurion Branches: 122 branch offices as well as various international offices, including Ghana and UAE Trade affiliations: Private Security Industry Regulatory Authority (PSIRA) Memberships: Security Industry Association, Security Association of South Africa, South African Intruder Detection Services Association, South African National Security Employees Association and Security Services Employers Organisation Quality Assurance: SABS, ISO 9001:2008 BUSINESS & FINANCE Turnover: >R2.5 billion Financial year-end: 30 June
Market share: Manpower: 5% Market: 7 – 10% Owner: Bidvest Ltd TRAINING Gijima, an industry leading training academy established by Bidvest Protea Coin, develops personnel to provide the best services possible, irrespective of the skills required by the market. The academy underpins the company’s dedication to service excellence. Bidvest Protea Coin provides in-house training in PSIRA Grades A-E, firearm competency, physical security, mining security, residential estate security, tactical response, VIP protection, soft skills and management developmental training.
CONTACT INFORMATION Chief Executive Officer: Petrus van Niekerk Chief Operating Officer: B.S. de Waal Chief Financial Officer: A. Still Non-Executive Director: B. Gosai Executive Director: M. Selepe Non-Executive Director G. Dludla Telephone +27 12 6658000 Email: info@proteacoin.co.za Website: www.proteacoin.co.za Address: 222 Witch-Hazel Avenue, Highveld Technopark, Centurion, South Africa
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THE BIG FIVE OF BANKING
by Anchen van Antwerpen
The South African banking landscape has changed significantly over the last couple of years. New complexities have led the industry to assess their positions on local and global levels and strategies are being evaluated to align with new realities.
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THE BIG FIVE OF BANKING
FEATURE
“South African banking is in a healthy state at present, showing a strong return on equity. However, change is the only constant and banks will have to navigate through many challenges and opportunities to stay relevant.”
The 2008 economic crisis has had a lasting effect on the global banking industry. The United States and Europe were most affected – and whilst this had direct consequences for South Africa, tight regulations and the average South African bank’s adequacy ratio being much higher than those of its global counterparts – has left SA relatively unscathed. This is not to say that South Africa does not have its own stumbling blocks to overcome. Higher inflation/interest rates, labour unrest, the weak rand, energy crisis and the retail industry showing its lowest YOY growth since 2009, are just some of the issues that are having an effect on the industry. These factors point out the importance of each bank’s agility in dealing with an ever-changing landscape. Traditional banking is giving way to a new focus on change and capacity for adaption to ensure progress.
FUTURE STRATEGIES One bank that has surpassed all expectations is Capitec. Capitec entered the market in 2002 as an affordable, transparent everyday banking service offering just one product – 30-day loans at a 30% interest. Twelve years later and it is set to rival the Big Four banks, consistently rolling out scalable transactional banking services. Capitec’s share price has grown by 172% since March 2014 and it is forecast that it will continue its explosive growth for at least the next four years. In absolute terms Capitec is already larger than Nedbank when it comes to overall growth, customer numbers and acquisition. There has also been an influx of international investment in the bank reaching an overall foreign shareholding of just over 16%. This is also set to increase exponentially.
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Overall, there are many important factors every bank has to consider when adapting their strategies to ensure a competitive and dynamic future. Each bank will have to answer to regulators, stakeholders and especially their customers while keeping a close eye on their competitors. We have identified four main areas of focus that can change the landscape of the South African banking industry. COMPETITION South Africa’s five banking powerhouses – ABSA, Capitec, First Rand Limited, Nedbank and Standard Bank – have made great strides in working to stay ahead of their competitors, with Standard Bank leading the pack for five consecutive years. (Data: Topco Media Top 500 companies – banking sector).
NET INTEREST INCOME 4.5E+10 4E+10 3.5E+10 3E+10 2.5E+10 2E+10 1.5E+10 1E+10 5E+09 0 2008/2009
2009/2010
2010/2011
ABSA
Capitec
First Rand
Nedbank
2011/2012
2012/2013
Standard Bank
As stated, when it comes to YOY growth Capitec has consistently eased its way into the market. They offer better value at a cheaper price and also have the highest NPS of its peers. They are keenly aware of the needs of the majority of South Africans.
CAPTEC % GROWTH
However according to 13th edition of the PwC survey on banking in South Africa – Shaping the bank of the future, local competition is no longer the biggest focus-point for SA Banks. Except for possible international infiltration, the real threat is the possibility that nonbanking parties are now wanting a slice of the pie. Facebook is in the process of applying for an Electronic Money Institution license and Google has already introduced their “Mobile Wallet” solution. These enterprises also do not yet have to conform to any banking regulations which makes the business opportunity even more attractive.
CAPITEC % GROWTH 0
0 28,90%
0.288956127 62.98%
0.629802622
46,36%
0.463615023 16,20%
0.161988773 2008/2009
2009/2010
2008/2009
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2009/2010
2010/2011
2011/2012
2010/2011
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2012/2013
2011/2012
“Customer service quality and customer acquisition and retention remain an essential part of customer centricity.”
2012/2013
THE BIG FIVE OF BANKING
FEATURE
CUSTOMER BEHAVIOUR Customer Satisfaction (SAcsi South African Customer Satisfaction Index) (Survey 16 122 customers)
#
BANK
SAcsi 2015
SAcsi 2014
Year Change
Points from average
% from average
1
Capitec
82.2
81.5
0.7%
+5.9
7.7%
2
FNB
79.3
79.5
-0.2%
+3.0
3.9%
3
ABSA
74.8
72.4
2.4%
-1.5
-2.0%
4
Nedbank
74.8
74.3
0.5%
-1.4
-1.9%
5
Standard Bank
73.7
74.4
-0.8%
-2.6
-3.4%
Industry Average
76.3
RETAIL CHANNELS Different Retail Channels Measured
ABSA
Capitec
FNB
Nedbank
Standard Bank
ATM
81.0
75.7
80.8
79.0
78.6
Branches
74.9
82.1
75.3
78.0
75.0
Online Banking
75.9
82.0
81.2
79.4
74.7
Cell Phone Banking
80.8
82.9
84.6
78.2
80.6
Banking App
76.2
NA
83.9
77.9
76.9
Customer Service quality and customer acquisition and retention remain an essential part of customer centricity and FNB has taken the lead in this endeavour spending more than half a billion rand on acquisition through adspend – R100-million more than any other bank.
Its client base has seen tremendous growth by, most importantly, making the transition from one bank to another an almost seamless process. It is no longer necessary for a customer to accept below average or out of date services. The branch model is already dwindling and
in a fast-paced world, online and mobile banking have become the drivers in customer satisfaction.
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TECHNOLOGY User-friendly interface
use a certain bank’s services when the same service is available from multiple banks? Most of the data is readily available but not used in the correct context. Banks will have to focus on creating customer personas. Whether traditional or digital, customers always prefer to be treated as individuals with distinct preferences.
Technology is regarded as a key enabler for innovation and therefore unsurprisingly will be the main focus point for the Top Five banks in the year to come. A few banks have already had great success in migrating their client base to electronic channels. Rapid expansion can however be derailed by archaic systems. New and improved software is available to ensure speed to market, which also makes it easier for new competitors to have a better offering in half the time. It is estimated that a total of over R5-billion will be utilised to fund the ever-growing technological need.
Protecting the customer The same data used to understand the customer will also need to be used to prevent fraudulent transactions, identity theft and other cybercrimes. Millions of rands are lost each year because of card fraud. Banks are taking these financial knocks as customers cannot be held liable for data theft.
Knowing the customer A lot of time and money will also be spent on understanding the customer. Customer data will have to be utilised in a smarter way. It is not enough to just know who the customer is and what services they are using. The question is: what is the customer’s intent? Why do or don’t they
TALENT MANAGEMENT Banking can be described as the art of managing people. In today’s competitive environment it is essential to have the right staff in place to ensure that the customer
comes first. Employees and customers are therefore both essential on the road to success. If the employees are happy it will resonate in the customer experience. We are immerced in a digital world. It is easy to forget that customers still want to be seen as individuals. Technology is a vehicle used to ensure a seamless banking experience and if correctly implemented customer complaints should be at a minimum. However that does not mean everything can be solved by a click of a button. A customer needs to know that there is a well-trained, qualified person that they can trust to answer necessary questions. Unfortunately South Africa still has a lack of local talent and banks are still mostly looking for individuals with global experience. ABSA, First Rand and Standard Bank have radically reduced their number of employees over the last couple of years, while Nedbank remained stable and Capitec grew substantially.
NUMBER of EMPLOYEES 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 2008/2009
2009/2010 ABSA
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Capitec
2010/2011 First Rand
Nedbank
2011/2012 Standard Bank
2012/2013
THE BIG FIVE OF BANKING
FEATURE
ALL COMPANIES HAVE CONSISTENTLY FOCUSED ON EMPLOYMENT EQUITY.
% BLACK EMPLOYEES 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 ABSA
Capitec 2008/2009
First Rand 2009/2010
2010/2011
Nedbank 2011/2012
Standard Bank
2012/2013
FEMALE EMPLOYEES DOMINATE THE NUMBERS WITH AN AVERAGE OF MORE THAN 60% PER BANK.
% FEMALE EMPLOYEES 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 ABSA
Capitec 2008/2009
First Rand 2009/2010
2010/2011
Nedbank 2011/2012
Standard Bank
2012/2013
CONCLUSION South African banking is in a healthy state at present, showing strong Return on Equity. However, change is the only constant and banks will have to navigate through many challenges and opportunities to stay relevant. These include: Rise in emerging markets Product offering Regulatory changes
African footprint Demographic changes Political landscape
Urbanisation Government interest Economic environment
All of these factors play a vital role in the future of South African banking. There will always be challenges. But in the end it really is all about the customer and the way they interact with their banking service. Innovation is key and banks need to change the speed in which they can deliver new products and services to customers. The focus should be on the needs of the customer of the future.
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SPECIAL ECONOMIC ZONES: EXPANDING INDUSTRIAL CAPABILITIES by Rob Davies, Minister of Trade and Industry
South Africa’s special economic zones policy and programme aims to deepen and expand industrial capabilities in partnership with foreign and domestic direct investors in mind. The Industrial Policy Action Plan (IPAP) outlines the type of desired industrial capabilities and the approach is not so much as to pick winners but rather to support emerging strong performers with the potential to significantly impact broader economic development.
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SPECIAL ECONOMIC ZONES
FEATURE
“The Department of Trade and Industry intends to coordinate governmentwide efforts to ensure that special economic zones effectively contribute to the country’s industrial development goals.�
The special economic zones programme entails coordinated and strategically sequenced interventions in three areas i.e. sector, regional and land development. Sector development entails clarifying the desired industrial capabilities, industrial clusters or product capabilities to be developed and supported. The regional dimension focuses on clarifying the regional context in which the desired industrial capabilities are to be developed as well as strengthening the regional innovation systems without which industrial development cannot be sustained. Land development focuses on administrative arrangements such as processing applications for permits and licences and compliance related environmental and other impact assessments.
Clarity on these three areas is critical for an effective programme and has to precede its design, together with strategic interventions to unlock foreign and domestic direct investment and translate foreign direct investment into domestic industrial capabilities. Countries that succeeded in integrating and synchronising interventions in these three areas have generally performed better with their special economic zones programmes. In South Africa, special economic zones are an important component of industrial policy. While the global experience with special economic zones remains mixed, special economic zones have led to huge economic gains. In China for instance, some regions have undergone significant transformation from focusing
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on primary industrial activities to being modern industrial hubs. The Department of Trade and Industry intends to coordinate government-wide efforts to ensure that special economic zones effectively contribute to the country’s industrial development goals. INDUSTRIAL DEVELOPMENT ZONES South Africa’s experience with the industrial development zones programme since 1998 has laid the foundation for building and expanding some key industrial value chains. To date, the designated and operational industrial development zones have attracted 59 investors on site with investments of over R10-billion with 8 500 direct jobs created. In addition, there are 27 secured but not yet operational investors with their projected investments totalling about R11-billion and approximately 4 000 projected jobs. Most of these investors have been attracted to the industrial development zones recently as government improved its incentives package through the new special economic zones programme. It is worth noting that of the 28 investors located at Coega Industrial Development Zone, 50% are foreign, 32% domestic, 11% are joint ventures between domestic investors, and 7% are joint ventures between foreign and domestic investors. In the case of the East London Industrial Development Zone the figures are 37%, 33%, 19% and 11% respectively. In both cases, it is apparent that linkages between foreign and domestic investments are growing stronger. This renewed appetite arises from learnings from the old industrial development zone programme. Against this background, the new special economic zones programme policy approach emphasises the following: Greater focus on identifying and clarifying desired industrial capabilities, value chains and product lines for each special economic zone Greater focus on host regions rather than just the fenced-in industrial areas Understanding and creating administrative arrangements that
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respond speedily to the needs of investors across all spheres of government Flexible design that responds to regional needs and contexts rather than just focusing on coastal regions or regions adjacent to international ports Long-term planning coordinated across and between the spheres of government and also with other development players A competitive suite of support measures including tax, financial and non-financial measures Additionally, the new special economic zones programme is now backed up by a competitive package of incentives for qualifying investments which include a 15% corporate tax rate, an accelerated building depreciation allowance, employment tax incentive for selected categories of jobs, as well as VAT exemption and duty free incentives for inputs in value-added exports. As indicated earlier, more and more investors are now lining up to locate in South Africa’s special economic zones. Utilising the new package of incentives and within the strategic framework outlined in the Industrial Policy Action Plan, the dti has been working with all provinces to identify potential special economic zones. Studies to determine the long-term economic viability of these proposed zones are at different stages of completion and will undergo a rigorous process of assessment and subsequent designation if a business case has been successfully made. PROPOSED SPECIAL ECONOMIC ZONES The proposed special economic zones fall into the following categories: Mineral processing zones: intended to support and promote the beneficiation of South Africa’s mineral reserves especially platinum-group metals, coal and iron ore. In this regard, special economic zones are proposed in Musina and Tubatse (PGMs beneficiation) in Limpopo and Bojanala (PGMs beneficiation) in North West.
Clean technologies and advanced manufacturing zones: intended to develop capabilities in a range of industrial sectors including clean technologies, electronics, information and communication technologies. In this regard, special economic zones are proposed at NASREC in Gauteng, Atlantis in Western Cape, Upington in the Northern Cape and the already designated Dube TradePort in KwaZulu-Natal.
SPECIAL ECONOMIC ZONES
Agro and life sciences zones: intended to promote the beneficiation of agricultural resources and thus develop industrial capabilities in food processing, pharmaceuticals and medicinal and related industries. In this regard, special economic zones are proposed at Nkomazi in Mpumalanga, Maluti-a-Phofung in the Free State and Mthata in the Eastern Cape.
THE INVESTMENT PIPELINE Moving forward, progress includes the completion of most of the feasibility studies, designation and launching of the Dube Trade Port as an industrial development zone. In addition, the application for the designation of the Maluti-a-Phofung as an industrial development zone has been approved and the licence will be issued in the foreseeable future.
FEATURE
More than the completion of some administrative processes and arrangements, the investment pipeline for a number of these zones is quite impressive. The potential investments include over R36-billion in a metallurgical complex over five years, over R1-billion for local production of fuel cells, over R50-billion in a new steel complex, about R800-million in an MRO facility and about R2-billion in a planned logistics hub.
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KEEPING BUOYANT
A GLOBAL PERSPECTIVE by Jeremy Gardiner
According to Bloomberg, SA is one of the most stressed-out nations in the world, second only to Nigeria. This is entirely understandable given what we have had to endure over the last year. The list is too long and depressing to go through, but at least we are still afloat and managing to keep our nose above the water.
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KEEPING BUOYANT
However, in order to feel better, we need a calm, growing and gradually healing world. Looking around the world, this eventuality is indeed achievable; however this depends on removing some obstacles currently threatening global economic peace. A slowing Europe and China have significantly curbed US growth for 2015/16. Forecasts have been reduced from 3.5% for 2015 to current levels of around 2%. Whilst stable, this is certainly far less exuberant than initial forecasts and Janet Yellen’s challenge in deciding when to raise rates is based on trying to ascertain just how much slower the US can still go, as well as concerns around the global economy. Fortunately for the US, oil neutrality remains a reality. Despite a collapse in the oil price, the shale drilling industry has managed to cut costs, reducing their breakeven oil price to around $50 per barrel. So although the number of rigs has fallen, production has remained constant. Although oil prices will eventually rise, a combination of shale drilling, plus Iraq, Iranian and Libyan oil coming onto the market in increasing numbers, should see lower oil prices with us for some time to come. Goldman Sachs are predicting $20 per barrel. In the meantime, the Middle East – destabilised as a result of a decade of war – has seen a mass exodus of refugees seeking exile in Europe, the biggest movement of people since WWII. While the numbers look enormous on television, they are still relatively small compared to the number that Lebanon, Turkey and African states, (including ourselves) have taken. It could all work out well. Europe has been facing a demographic time bomb for some time with the elderly living potentially 20 years longer than their money and an instant gratification generation of youth who think that ‘having kids looks like quite a lot of hard work’ and are not producing the requisite number of taxpayers to help government look after impoverished pensioners. If they can successfully
incorporate the refugees into society and get them to work, it would go a long way toward solving their problems. If they don’t, they face a welfare nightmare, a whole host of social ills including a rise in crime and the resultant xenophobia. Economically in Europe, the latest bailout has seen Greek fears subside for the moment. They will most certainly rise again, but not for a while. Vladimir Putin remains defiant, but not outrageously so, as he struggles to contain a collapsed Russian economy and currency. A big concern at the moment is the happenings in China. A rollercoaster stock market was not a surprise. Up 100% in 12 months and down 30% in two weeks should come as no surprise to anyone. The Chinese government (fearing social unrest as a result of losses) is spending billions of state pension fund dollars in an attempt to keep markets high, but this is unsustainable and unfair to the pensioners whose pension fund money was used. Arresting market traders is also not cool. All markets want is honesty on the Chinese GDP growth numbers. It is widely believed that they will massage the official numbers to somewhere between 6.5 and 7%. However, analysts say that looking at all the underlying data available, the real numbers are nowhere near that level. So what is it? Anywhere between 6 to 7%, markets can digest. Any less will be a problem. The emerging market (EM) storm continues unabated and this is expected to continue, at least in the short term. Fears around US federal rate hikes and Chinese growth (or lack therefore), have neatly usurped the position of fear held previously by Greece and President Putin’s escapades in the Crimea. This negative sentiment has seen over a $1-trillion flow out of emerging markets over the past year and to put that into perspective, it’s roughly double the amount that existed in 2008 during the financial crisis.
ARTICLE
So collapsing currencies, slowing growth, recessions and rating downgrades are all de rigeur of emerging market life at the moment and SA is no exception. Our currency has been hammered to 15year lows, along with the rest. However, while we are slowing, we are at least still growing. Unlike Brazil, our debt is still investment grade and pretty safe for the next 18 months, provided Minister Nene can keep government expenditure under control. To ensure we are completely safe however, we need to get growth going. Part of that will happen naturally (assuming we don’t see a Chinese growth collapse), but leadership from government would help a lot e.g. Removing the visa regulations and promoting tourism, particularly to the Chinese, would be a good place to start. Post the EM exodus in 2008, approximately $2-trillion flowed back into emerging markets over the next four years. Granted, much of that was the result of QE, the quantum of which will be less this time. Just getting some of the $1-trillion that has left in the past year would make things feel a lot better. And they need to come; the gap between what western pension funds have in their funds and what they owe their pensioners who are living 20 years longer than expected is growing substantially and pension deficits are not going to be reduced earning less than 1% on German debt. Emerging market yields will help a lot. Essentially though, for that to happen we need a boring, bland world. No more Greece, no more Putinesque aggression, an end to Fed tightening, (or the threat thereof), and clarity/honesty on the Chinese growth numbers. A world without drama would see confidence return followed by a risk-on environment, which would see gentle flows resuming, gradually healing currencies, economic growth and a host of other ills.
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FEEDING OUR NATION by Fiona Wakelin
In 2015 we face the twin challenges of climate change and the projected doubling of the population on the African continent to 2.4 billion by 2050.
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FEEDING OUR NATION
ARTICLE
“Although the country is food secure at national level, at household level more than 20% of the population is vulnerable to food insecurity.”
GLOBAL CONTEXT “Global food production must rise by 70% by 2050 to feed over nine billion people worldwide; without strong adaptation measures, climate change will reduce food crop yields by 16% globally and by 28% in Africa over the next 35 years ... food security, poverty and climate change are closely linked.” – Department of Agriculture, Forestry and Fisheries
markets for small-scale primary producers; climate change and lack of adequate, timely and relevant information on food security. The right to sufficient food is contained in Section 26 and 27 of the South African Constitutional Law of 1996. The Bill of Rights states that “every citizen has a right to have access to sufficient food, water and social security” and that “the State must take reasonable legislative and other measures, within its available resources, to achieve the realisation of this right”.
SOUTH AFRICA South Africa faces serious food security challenges. These include inadequate safety nets and food emergency management systems; inadequate access to knowledge and resources to make optimal choices for nutritious and safe diets; land is not always optimally utilised for food production, often due to lack of access to production means; limited access to processing facilities or
The National Development Plan, Vision 2030, entrenches the need for the country to continue addressing this challenge. The Food and Nutrition Security Policy is a key vehicle for delivering the Plan’s objectives. Cabinet approved the Policy in September 2013 and mandated the Department of Agriculture, Forestry and Fisheries and the Department of Social Development supported by other line function Ministries to lead implementation.
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HOUSEHOLD FOOD AND NUTRITION SECURITY PROGRAMME The 2012 General Households Survey reflected that high levels of unempolyment, increased food and fuel prices have impacted negatively on households’ abilities to access food. The Household Food and Security Programme is guided by the following objectives: Ensure access to food for the poor and vulnerable Improve nutrition security Develop market channels for emerging food producers Foster partnerships Enhance safety nets and foodemergerncy management systems In response to this challenge the National Department of Social Development is establishing a network of food distribution centres throughout the country. By 2016
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the proposed model will have set up nine provincial food centres, 45 community food depots and 91 community nutrition development centres in partnership with NPOs operating in targeted communities. FOOD SECURITY PROGRAMME In the Foreword to the Department of Agriculture Forestry and Fisheries Strategic Plan 2013/14 to 2017/18, the Honourable Minister Tina Joemat-Pettersson stated: “Although the country is food secure at national level, at household level more than 20% of the population is vulnerable to food insecurity. Two main factors contribute to food vulnerability, namely unavailability and unaffordability. While government has introduced a number of job-creation programmes to address this, if there is not enough food produced locally, communities would still suffer food insecurity. This is, in fact, the situation with many communities in South Africa at the moment.
“The Food Security Production Programme is therefore aimed at ensuring food availability at local and household levels. The aim of government is to support farmers to ensure food production on the identified 1 million hectares of underutilised land through mechanisation services, production inputs and marketing of produce. “Maize and beans will be prioritised as most of our rural communities already produce these crops. As part of this programme, provinces will identify communities, smallholder farmers and businesses to participate. The involvement of private contractors will be beneficial in supporting communities to utilise the land, particularly underutilised high-potential production areas. Furthermore, the use of contractors will also speed up the creation and support of small, medium and micro enterprises (SMMEs) and in this way, contribute towards employment creation and economic growth.”
FEEDING OUR NATION
“The issue of food security is a top priority for the country.” The Food Security Production Programme links subsistence producers and smallholder producers to schools (i.e. to supply the School Nutrition Programme), public hospitals and prisons; this means that subsistence farmers will then have the opportunity to become smallholder producers in their own right.
ARTICLE
FOOD SECURITY BULLETIN
CLIMATE CHANGE
The Department of Agriculture, Forestry and Fisheries brings out a monthly Food Security Bulletin (http://www.daff.gov.za/ daffweb3/Home/Crop-Estimates) which makes available crop production forecasts by the Crop Estimates Committee, comprised of officials from the following Institutions: Department of Agriculture, Forestry and Fisheries; Provincial Departments of Agriculture; various ARCInstitutes (Soil, Climate and Water, Small Grains Institute and Grain Crops Institute); and Statistics SA. This enables crop producers and policy makers alike to have a holistic five year view of South Africa’s staple crops.
Due to the drought experienced in the country, South Africa had to import yellow maize in March 2015. The drought had damaged crops in Free State and North West, which comprised 64% of output in 2014. The price of white maize has risen by 27% in Johannesburg this year and yellow maize, used mainly as animal feed, by 13% with the Crop Estimates Committee predicting the smallest harvest since 2007. This could have negative impacts on food inflation with neighbouring countries suffering from similar conditions. The reality of global warming and its potential consequences makes the issue of food security a top priority for the country and the strategic goals for Vision 2030.
REFERENCES http://www.energy.gov.za http://www.daff.gov.za http://www.nda.agric.za http://www.daff.gov.za/doaDev/topMenu/DAFF%20Strategic%20Plan%202013.pdf www.dsd.gov.za
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VKB is a South African agricultural enterprise which was established almost 100 years ago and incorporates a unique vision focused on collaboration with interested parties. Through revolutionary ideas, strategies were developed that transformed the once cooperative enterprise into a modern, dynamic company that offers a variety of solutions for stakeholders in the agricultural value chain. “Producers in the area in which we conduct business, own and control the VKB Group. Strategies therefore remain focused on permitting the company to stay a truly agricultural producer business that focuses on creating a competitive edge in economical products and input for producers while current successes are, amongst others, attributed to identifying and applying of synergies, effective utilisation of economies of scale and investment in relevant segments of the food and agricultural value chain.” VKB is a financially sound institution with an annual turnover well exceeding R8-billion, securing their position as one of the leading agricultural companies in South Africa. Since 2007, VKB has repeatedly been nominated as one of the top 500 companies in South Africa and employer of choice for its 3 500 employees. This is achieved through capitalising on our rich heritage and by applying sound cooperative principles and values. These principles ensure that any association with the group remains a noteworthy experience. The VKB Group’s primary strategic focus will therefore remain the rendering of agricultural input services and products, the provision of financing solutions, insuring of assets and risks, the efficient handling, storage and marketing of grain, as well as addressing the mechanisation needs of its clients. This is done through an extensive network of retail branches, silo complexes, insurance offices and mechanisation outlets in Eastern Free State and Limpopo. Business in these areas is conducted under the brand VKB in Eastern Free State and NTK in Limpopo. “With sustainability as its key strategic drivers, recent integration investments aim to unlock or create value from commodities produced by farmers in our service area and beyond, by adding value to these products through processes in factories owned by the group. “The most significant of these is Grain Field Chickens, a broiler abattoir which also offers diversification strategies for producers which, in turn, will contribute to food security by keeping South African agricultural producers financially sound. Producers can register as contract growers for the project and commodities such as maize and soya beans are used as protein source in broiler feed. “TripleV Feeds, as well as Nu-Pro Feeds are animal feed factories which provide a critical service to the contract growers of Grain Field Chickens, but also established trusted retail brands in the industry. Maximum capacity utilisation of these plants ensures that quality feed can be supplied at the most economical value to both customers and contract growers within the VKB Group service area. “Free State Oil produces quality soya oil and cake in this state of the art crushing plant, which positions this company as one of the important links in the agricultural value chain investments of the group. The oil cake gets supplied to the animal feed factories in the group, which, collectively with the abattoir, allows producer investors to enjoy cumulative margins through
these investments whilst a stable and sustainable demand is created for the products they produce. “Maize mills in Mokopane, Thohoyandou and Frankfort are structured in line with the food value chain strategy investment strategy. These mills produce a variety of quality products under the Magnifisan, Flamingo and Imbali brands. The VKB Group is also investigating a significant investment in a flour mill, which, if certain conditions are accepted and approval is obtained from the Competition Commission, will become part of our exciting assembly of industries. “The group’s strategic focus on food security also reflects in the investment of a SANSOR approved laboratory in Reitz to manage the regulatory aspects of seed production for wheat, which is needed to produce bread and create demand for wheat in our service area.” A dedicated logistics division ensures efficient and cost effective management of requirements of the group and employs a fleet of vehicles and equipment for this purpose. The VKB Group’s team of agricultural economists has the necessary expertise to support any agricultural producer with advice and services to ensure long-term sustainability. The agricultural economists assist producers with a view to enabling them to take correct and, informed economic decisions. VKB markets and supports, through training and visits, a wide variety of computer programmes for specific use in agriculture. The development of emerging farmers is a top priority for the VKB Group. The Developing Agriculture Division in its long-term development strategy therefore strives to attain the goals of Vision 2030 – Leadership in the Development of Sustainable Commercial Farmers. The purpose of this strategy is socio-economical development by furthering social capital, economic growth, stability, employment, food security, alleviating poverty, and better distribution of income. The VKB Group is interacting with 40 emerging farmers with a joint arable area of 3 000 ha in extent, which extends across the company’s service area. VKB is equally committed to the training and development of previously disadvantaged individuals by including them in their dynamic workforce. The VKB Group affords these employees the unique opportunity to specialise in a wide range of employment opportunities in the various segments of the agricultural value chain in which the group invests. Corporate Social Investment (CSI) is the cornerstone of good corporate citizenship and forms an integral part of Broad-Based Black Economic Empowerment (BBBEE), transformation, corporate accountability and governance programmes. As a corporate citizen VKB realises that it must fulfil its responsibility towards the communities within which the company functions. The VKB Group is also of the opinion that the company has a fundamental role to play in the social and economic upliftment of the communities to which it has committed itself. The VKB Group’s committed staff, loyal clients, a visionary board of directors, innovative efficient management and committed suppliers form part of the competitive edge that the company has over its rivals.
BPO INDUSTRY IN THE SPOTLIGHT
The Business Process Outsourcing (BPO) industry in South Africa is a major source of employment for the country which has created approximately 215 000 jobs.
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BPO INDUSTRY IN THE SPOTLIGHT
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BPO MARKET JOB BREAKDOWN DOMESTIC
OFFSHORE
Gauteng
13 800
5 300
Western Cape
29 400
16 000
KZN
20 100
5 400
Other
5 000
TBC
Source: BPeSA Barometer project 2015
Please note, these are the closest estimates computed from mathematical calculations and assumptions from the available national data at the time of research. With generally low entry requirements, the majority of people employed in the industry fall in the youth bracket of 18 to 30 and come from previously disadvantaged communities. The relative ease of access of the industry makes it an important job creator for the country. GROWTH Despite the market being dominated by domestic business, with most of South Africa’s largest corporates managing their own centres, the international BPO market has accounted for the majority of the industry’s recent growth. Between 2010 and 2015, international BPO business grew from approximately 10 000 to 26 700 people. This growth has been driven by a number of factors.
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Presence of international outsourcers South Africa is home to some of the world’s largest BPO organisations. These multinational organisations continue to use South Africa as a base to service their international clientele. International outsourcers currently present in South Africa include: Aegis, Capita, CCI, Coracall, EXL, Merchants, Serco, Teleperformance, WNS and Webhelp.
3 LARGE ENGLISH SPEAKING TALENT POOL •
•
• Presence of international brands South Africa services a number of the world’s biggest organisations in both front office (voice based interaction) and back office work. Brands currently being serviced from South Africa include Amazon, Asda, Bloomberg, British Gas, BP, Engen, iiNet, 02, Lufthansa, Shell, Shop Direct, State Street, TalkTalk and Vodafone. International acknowledgement South Africa is an award winning BPO location and since 2012 has won three international awards. These awards, along with continued investment from global brands, have added to the attractiveness of the location: • 2012 National Outsourcing Association, Offshoring Destination of the Year • 2013 European Outsourcing Association, Offshoring Destination of the Year • 2014 National Outsourcing Association Professional Awards, Skills Development Programme of the Year,
4 •
•
•
• COMPETING VALUE PROPOSITION As an international BPO destination, the South African offering is built around five core areas:
1
COST SAVINGS
South Africa offers major cost savings to source destinations such as the UK of at least 50%, on a steady-state operating basis (including overheads). Added further to this is a national incentive through the Department of Trade and Industry.
2 • •
•
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5 •
•
FIRST WORLD EXPERIENCE South Africa’s infrastructure is world class, making it an easy place to conduct business. South Africa is well positioned to service the European market in terms of similar time zones. It is also strategically located to provide 24/7 customer support services to the US and Australian markets. In addition to time zone benefits, international flights terminate in South Africa at convenient times allowing maximum productivity for trips to the region.
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•
South Africa is ranked 3rd, behind India and the Philippines, among offshore BPO global locations that can support English services. South Africa is well known for its cultural similarities with the UK, Australian and US markets, making it an ideal customer service destination for these locations. South Africa has a number of top universities and tertiary academic institutes generating in the region of 180 000 graduates each year.
DEEP DOMAIN SKILLS South Africa’s tertiary education system produces a large number of qualified actuaries (three times as many as India), chartered accountants and other specialists each year. South Africa’s data protection laws, products and certifications are world renowned and are similar to those used in the UK and EU. According to the World Economic Forum, South Africa is ranked 1st in the world for a number of financial indicators including Auditing and Reporting Standards. South Africa is an internationally renowned Legal Process Outsourcing (LPO) destination, with strong legal skills similar to those found in Europe. Approximately 7 000 graduates are produced each year, with the local demand accounting for around 3 000 graduates. South Africa is a leader in international BPO standards and has been highly influential in the development of the global ISO contact centre standard.
ROBUST ENABLING ENVIRONMENT The South African government works closely with the private sector, industry bodies and investors to create an enabling business environment. The South African telecommunications landscape has improved significantly since 2000, with costs falling by 85% between 2003 and 2009. The cost and quality of international bandwidth has been further assisted by the arrival of various undersea cables. BPESA has partnered with The Rockefeller Foundation to grow the BPO industry in South Africa and help promote the concept of Impact Sourcing.
BPO INDUSTRY IN THE SPOTLIGHT
THREATS TO THE MARKET Skills shortage The major challenge to the growth of the industry is skills development. There is a huge amount of interest in South Africa from an international BPO perspective, but the main problem is that the demand for industry-specific talent could soon exceed the supply. South Africa produces over 600 000 school leavers and university graduates each year. This is further assisted by a large base of unemployed graduate talent. “Despite a large base of qualified talent in South Africa, there is a shortage of skills in certain key areas. This is no more prevalent than at team leader level. Without a solid base of middle management, the quality of the South African offering will suffer, putting increased pressure on the current crop of team leaders and pushing market prices up for both the domestic and international operators. In order to address this issue we are currently embarking on a national skills strategy,‘’ says Tebogo Molapisane, CEO of BPESA. The BPESA strategy aims to: • Understand the gap between demand and supply of key skills (skills gap analysis) • Formulate a competency framework against which all programmes and qualifications relevant to the industry’s needs can be aligned • Develop a curriculum framework per core role (Job Function) with priority emphasis on scarce and specialist skills • Establish a skills academy through which skills programmes will be developed and delivered to the industry. These programmes will address the skills requirements for unemployed work seekers, BPO agents (front, middle and back office, as well as across industries), team leaders and supervisor specialist roles and operations management • Develop a capability to provide Quality Control, Assessment and Certification services to individual and organisational members • Institutionalise skills development by incorporating high schools, FET colleges and universities into the delivery model to provide a sustainable talent pipeline REACHING A NEW MARKET “There is a huge untapped talent pool in South Africa perfectly suited to servicing the industry, the problem is finding and educating these individuals. In response to this demand we have worked with educational game specialists, Formula D Interactive, to develop a game that helps to identify work ready talent for the industry,’’ says Molapisane. Team C4 is an industry first gamification initiative, which uses game mechanics to identify talent through four mini games that test the player’s language, problem solving, numeracy and communication skills.
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“This is a fantastic initiative funded by our global partners The Rockefeller Foundation and I believe it will go a long way towards dealing with a potential skills shortage in the industry,’’ says Molapisane. GLOBAL SUPPORT As part of BPESA’s partnership with The Rockefeller Foundation, the industry association aims to develop the BPO landscape in South Africa through strategic focus areas such as Impact Sourcing. Impact Sourcing is a business delivery model which provides quality and cost at parity with traditional BPO with optimised enhancements such as a qualified, trained untapped talent pool with skills sets to meet client needs along with lower attrition rates and higher corresponding levels of employee engagement. As a result, it is expected that businesses within the industry will increasingly adopt inclusive hiring as part of their core business practice and that the talent pool for the industry will increase and become more diversified, providing employment to youth who would otherwise have limited access to jobs. “We have identified BPO as a perfect channel to assist us in creating large scale employment across not only South Africa, but Africa as a whole, to benefit the Continent’s high potential but disadvantaged youth. In BPESA we have found a partner that can help us achieve our objectives and we are very excited to be working alongside them once more,” says Mamadou Biteye, Managing Director of The Rockefeller Foundation Africa Regional Office.
SOUTH AFRICAN POTENTIAL The BPO industry through foreign investment currently accounts for over 26 700 jobs in South Africa. It is hoped that this number will grow significantly over the next five years and in the process will help make a meaningful impact on the unemployment rate in South Africa. “It is wonderful to see the extent to which the South African BPO delivery has progressed over the past four years. South Africa has now moved from bordering on onshore-equivalence in 2011 to exceeding onshore capability in complex voice and sales protection and enhancement services in 2015, with LPO now also beginning to kick-off. We have also witnessed the BPO market move from early adoption to the start of the growth curve phase, with the creation of 200 000 international jobs a real possibility,” says John Willmott, CEO NelsonHall. “There is a huge opportunity for this industry to make a serious dent in unemployment in this country. If we can get the public and private sectors working together to make South Africa attractive as an international BPO destination there is no reason why we can’t create a hundred thousand new jobs through foreign direct investment. As global leaders in the English customer service market, the Philippines employ over 1.3 million people. As a location they have 500 000 English speaking people – comparable with South Africa. The opportunity is there we just need to take it,’’ says Molapisane.
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LUNGILE DHLAMINI MANAGING DIRECTOR
VALUE PROPOSITION Johannesburg Water SOC Ltd (JW) is a municipal entity, wholly owned by the City of Johannesburg and is mandated to provide water and sanitation services to approximately 4.4 million residents within the jurisdiction of Johannesburg. JW supplies 1 574 Ml/day of potable drinking water, procured from the bulk supplier, through a distribution network of 11 896 km, 122 reservoirs and water towers and 35 water pump stations.
CONTACT INFORMATION Managing Director: Lungile Dhlamini COO: Ntshavheni Mukwevho Financial Director: Busisiwe Shongwe Executive Director of Stakeholder Relations and Communications: Hilgard Matthews Executive Manager Human Resources and Corporate Governance: Thembalethu Fikizolo Chief Internal Auditor: Duduzile Tshabalala Company Secretary: Graham Luden Telephone +27 11 688 1400 Address: 17 Harrison Street, Marshalltown, Johannesburg Postal address: PO Box 61542, South Africa, 2107 Website: www.johannesburgwater.co.za Toll-free/call centre/customer care number: +27 860 562 874/ +27 11 375 5555
The spent wastewater is collected and reticulated via 11 786 km of wastewater network and 37 sewer pump stations. It treats 973 Ml/day of sewage which can fill a dam four times the size of Emmarentia Dam at six wastewater treatment works, which two of its biogas-to energy plants which convert methane gas to energy are located. Johannesburg Water has a very capable, sophisticated world class system in place to carry out its mandate efficiently to its customers.
VISION & MISSION JW strives to be a world class African water and sanitation utility and to provide all citizens with quality water and sanitation services whilst adhering to our corporate values of teamwork, accountability, cost effectiveness, communication and customer service. STRATEGIC GOALS JW’s five-year strategy is aimed at providing quality water and sanitation services in a financially sustainable, economically viable, customer responsive and environmentally sound manner. A wide range of planning based on its Asset Management Framework has informed the company’s focus. The company’s strategic objectives have been built around themes focusing on: customer priority, infrastructure investment, operations efficiency and promoting working culture excellence. INITIATIVES JW’s strategic intent has been drawn from the City of Johannesburg’s strategy, GDS 2040 and focuses on eight city priorities that are of core relevance to JW’s operations. The company has embarked on a multi-year infrastructure renewal programme, to replace 900 and 800 km of water and sewer networks by 2017. Since the programme started two years ago JW has replaced 182 water and sewer pipes across the City of Johannesburg, stretching over 33 km. This initiative has significantly reduced physical water leakages, pipe bursts, sewer pipe blockages and collapses, increasing the quality of services that JW is rendering to its customers. R1.1-billion of capital expenditure was achieved by the company in the 2014 financial year, a total that is up R268-million from the previous financial year.
JOHANNESBURG WATER
COMPANY PROFILE
Reducing energy costs and mitigating climate change are other initiatives that are very close to the heart of the company, such that it has started a process of rolling out biogas-to-energy plants at its wastewater treatment plants in the north and south of the city. A total of 3 578 tons CO2e of
Furthermore, the company has created 194 small business opportunities in line with the City’s Jozi@work small business and decent jobs creation initiative. The company’s incubation programme started in 2013/14 financial year and appointed 65 SMMEs with a 2CE,
greenhouse gas (GHGs) emissions have been offset since the commissioning of the completed plants in 2013.
Construction Industry Development Board (CiDB) grading all to be incubated to 4CE grading by 2016. These SMMEs will be equipped with valuable skills and knowledge that they can use to grow their businesses.
EMPOWERMENT As a municipal-owned company, JW’s B-BBEE verification covers six of the seven B-BBEE elements, excluding ownership. The company is rated a Level-4 B-BBEE contributor. JW’s procurement activities contributed R440-million (2013: R289-million) directly to the economic transformation of the City of Johannesburg and as such, have the ability to directly contribute towards alleviating unemployment and income inequalities by providing business and employment creation opportunities to the residents of the city of Johannesburg.
The water utility is passionate about the development of the youth. The company currently has 16 bursars predominantly in the civil engineering field, 11 Interns placed in different departments within the company, 45 internal employees who are on learnerships and 15 unemployed young people who are currently in college on an apprenticeship in plumbing.
COMPANY INFORMATION COMPANY STATISTICS / DEMOGRAPHICS / HISTORY Year founded: 2001 Employees: 2 522 BUSINESS & FINANCE Revenue/Sales: R8.4-billion Holding company: The City of Johannesburg Metropolitan Municipality Bank: Standard bank
CONTRACTS & AWARDS • South African Institute of Civil Engineers (SAICE) Award of Technical Excellence for the Northern Wastewater Treatment Works Biogas-to-energy plant • 1st place by Olifantsvlei Works of the Water Institute of Southern Africa (WISA); Isigidi award for the Best Operated Wastewater Treatment Works • 3rd Place by Driefontein Works of the Water Institute of Southern Africa (WISA); Isigidi Award for the Best Operated Wastewater Treatment Works less than 25 million litres per day
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RETAIL POSSIBILITIES IN SOUTH AFRICA by Christo Wiese
The current low growth of South Africa’s GDP poses an additional challenge to the SA retail sector. Other challenges include, inter alia, increasing administered prices (eg. electricity), unemployment, and consumer debt levels.
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Although most of the large South African retailers appear to cope fairly well – albeit with generally lower operating margins, there are some who show clear signs of distress – particularly those with highly leveraged balance sheets. There is little doubt that in retail a strong balance sheet is a clear competitive advantage. Only a handful of retailers are showing signs of distress although some commentators suggested that the retail industry would be one of the top three industries to be in distress in 2014. What we have seen, in an industry that is predominantly a high volume, low margin business, a deterioration in margins. For example: Pick & Pay’s relatively low gross margin decreased from 18% to 17.7% for the year ended Feb 2012 to 2013 whilst Shoprite’s gross margin has decreased marginally less from 20.9% to 20.8% from June 2013 to June 2014; and J.D Group’s gross margin in the same period, decreased from 28.1% to 25.9%.
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“Despite all the challenges still faced by the Continent, there is, today, a new level of stability and willingness to engage with business in most jurisdictions.”
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In addition to the challenges already mentioned, the industry also has to cope with the following: 1 Consumer spending levels remain weak, especially with respect to non-essential goods 2 Operational costs are rising as variable costs (e.g supplier prices and fixed costs) are increasing 3 Technology has shifted consumer behaviour, giving more importance to the digital presence of a brand and the ability to purchase items on-line in preference to physically purchasing from a store 4 Increased competition, both locally and from multi-nationals as globalisation continues its trend of making the world smaller. One rising concern, especially in the South African retail market, is the increasing debt levels of consumers. Retailers are facing increasing strains on their credit sales. The rising debt levels, coupled with increasing interest rates, means that credit sales may no longer be the significant driver of sales growth that they once were.
The National Credit Regulator (NCR) statistics indicate that as many as 9.7 million consumers are struggling to pay their debt obligations. This represents nearly half of all credit active consumers, which is a concerning statistic given the reliance on credit by certain retailers. With retailers often extending credit to these same customers in an attempt to drive sales, the retail industry is likely to see the level of bad debts increasing in the future (National Credit Regulator, June 2014). Credit results in the deferral of cash within the business, and may increase liquidity risks if left unmatched with creditor obligations. Thus far SA retailers appear to have fared considerably better than their UK counterparts.
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At the start of 2009, several of the historically successful and highly profitable United Kingdom retailers were forced to enter into business administration in order to rescue their businesses and brands, e.g. Woolworths, Clintons, Game, HMV and Blockbuster. The closure of these big brand names brought about a major shock to the UK’s retail industry. The predominant reasons behind these closures had been identified as: the economic climate during that time increased competition, as well as the advent of the Internet which resulted in changes in consumer behaviour. It can be concluded that without action, the same fate may befall certain South African retailers. This means that SA retailers will simply have to up their game, and that those who strive to be among the winners will have to continue to improve efficiency and to innovate. Fortunately our top retailers have a good track record in this regard. SA Retailers have one huge factor in their favour which UK retailers for example lack - namely the opportunities that Africa offers for growth. This potential is best illustrated by Africa’s steady growth in real GDP - averaging 5% per year over the past decade; growth made possible by strong underlying fundamentals in terms of inflation, fiscal deficits and financial stability. It is now widely accepted that Africa is home to some of the world’s fastest growing economies. In fact, more than half of the world’s 10 fastest growing economies currently are in Africa. The World Bank’s latest projections are for these high growth rates to continue over the next decade and for Sub-Saharan Africa to remain the fastest growing region in the world – outside Asia. Of course, it is true that these growth figures, impressive as they are, come from a low base, illustrated by the fact that Sub-Saharan Africa as a whole accounts for only 2.5% of world GDP. This figure reduces to 1.3% if one excludes the region’s two powerhouses, South Africa and Nigeria.
Secondly, one should be aware, that the business climate in every country in the region is different, as is the level of infrastructure development as well as the availability of skills. In the Pepkor-Shoprite group, we have been in the fortunate position of following the transformation of the African landscape closely. Those of us who have a positive vision of the Africa of the 21st century are often accused of being bright-eyed optimists. I, for one, have never been able to see the point in being anything by positive. But, that aside, it seems clear that even the pessimistic investor will have to agree that the case for continued high growth rates in our region is a compelling one, as articulated in an ironic comment recently made by The Economist: “If potential were edible, Africa would have the best-fed people on earth”. Therefore, many of us remain very optimistic about Africa’s future and its continued growth. As is often the case, this growth will not necessarily be linear and there are certain to be occasional setbacks. But despite all the challenges still faced by the Continent, there is today a new level of stability and willingness to engage with business in most jurisdictions. This, combined with better access to information, easier communication, higher levels of education, transparency and the spread of democracy, has worked to substantially change our Continent’s traditional image of a dark and dangerous place to do business. Although the market for retailers appears strained in South Africa, the future is not completely bleak. Many South African companies have begun expanding operations internationally. Woolworths has become the largest retailer in the southern hemisphere following the completion of the deal with David Jones in Australia. Shoprite has seen a 9.7% increase in turnover owing to their presence in 163 stores throughout 15 African countries. Steinhoff has realigned its entire business model from manufacturing with no pricing power to being a vertically integrated furniture business offering manufacturing,
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sourcing, logistics and retail across Europe, the UK, South Africa and Asia Pacific, with pricing power leading to significant growth. Lastly, Walmart’s recent acquisition of Massmart indicated the growing interest globally in the potential of our market.
Three of the above-mentioned South African retailers are included in the 50 fastest growing retail brands internationally. The traction in these brands and their international presence has led to success with compound annual growth rates over the five years ending 2012 of: 1 S teinhoff International Holdings 36.3% (3rd internationally) 2 S hoprite Holdings 14.2% (33rd internationally) 3 W oolworths Holdings 11.9% (46th internationally) All in all, therefore it appears that the South African retail industry, despite the current head winds, remains an exciting sector, bearing in mind that of the top 20 retailers in Africa 17 are South African.
“SA retailers have one huge factor in their favour which UK retailers for example lack – namely the opportunities that Africa offers for growth.”
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FORESTRY SECTOR IDEALLY SITUATED TO ENABLE RURAL DEVELOPMENT
Almost half the economic activity generated in the agricultural sector can be attributed to forestry, contributing 1.2%, out of agriculture’s total 3%, to South Africa’s GDP. “And with its ideal placement in undeveloped, rural areas, forestry is an ideal driver for rural economic development,” says Mr Roy Southey, Executive Director at Sawmilling SA. Indeed, the most recent Fibre Processing and Manufacturing Sector Education and Training Authority (FP&M SETA) report highlights the industry’s progress in responsible forestry operations and its contribution to the economic and environmental viability of communities. FORESTRY AND THE ECONOMY The agri industry employs approximately 165 000 people, of which 92 700 jobs (22.5%) are in the forestry sector. The sawmilling, mining timber, pulp and paper and other related industries account for the remaining 72 300 jobs, according to SETA. About 1.28 million hectares or 1% of the total South African land area is afforested. Forestry’s gross contribution to GDP is worth about R28.1-billion annually. Add the value of the paper industry and the total comes to R45-billion per year. Roundwood sales alone generate R7.5-billion per year. Furthermore, there is the opportunity to earn export revenue by supplying wood and wood products to the rest of the Continent, as two major stakeholders, Sappi and Mondi, are already doing. STIMULATING SMALL BUSINESS The forestry industry has on average created 1 000 job opportunities for new growers every year over the last 30 years. The Department of Agriculture, Forestry and Fisheries pursues a nett afforestation target of 10 000 hectares a year. This is in rural areas, where few other viable opportunities for economic activity exist - and could generate an additional R500-million a year. Southey says technological advances make forestry a sustainable option to further stimulate enterprise development. “We can now put a small sawmill down anywhere in the country, at a reasonably low cost. These units are light and easily mobile. This gives rural communities relatively quick and easy access to the industry.” Southey cites the ten, mainly community owned mills, in Ugie as a prime example. The mills employ over 300 local people and cut timber for its own community and for resellers in the region. What is left is sold to the leading South African diversified timber company PG Bison’s particleboard plant. “All forests are in rural areas. This is our space. Beyond the legislated need, we believe that creating economic opportunities here is our moral duty.” USING MORE TO USE LESS Besides the economic turbulence of the last 7 years, various factors have caused the industry to lag behind in efficiency and its ability to supply in demand. For example, the recovery rate per log of wood has dropped well below the international standard of 60%. “We needed to use more of the tree, so we use less of our scarce resources.” PG Bison has taken the lead by using Scandinavian technology at its sawmill in George. What used to be waste, now becomes international quality particle board. “The challenge now is to involve as many stakeholders as possible in the conversion into high-tech. The large factory has to make way for smaller operations that spread the benefit wider. In this way forestry can become – and is becoming – a driver for a rural economic revival.” RESPONSIBILITY “We are very good at the science of growing “green” trees. We are more responsible than many other role players internationally when it comes to our carbon footprint and environmental management,” says Southey. The SETA report mentions the contribution of Mondi to linking pristine natural areas such as wetlands and forests in ecological networks. www.pgbison.co.za
Ugie Board Plant with the Prentjiesberg in the background
SUCCESS IN A FOREST:
PG BISON ONCE AGAIN IN THE TOP FIVE PG Bison, leader in the diversified timber industry, has once again been nominated as one of South Africa’s five most financially successful companies in its sector by the Top 500: South Africa’s Best Companies publication. The star cooler at the SupaWood press in Boksburg
operations is its delivery of close to 16 000 interlinks to its customers every year. Furthermore, PG Bison’s forestry interest in the George area supply poles to the agricultural industry – specifically for vineyards in the Cape region – as well as for transmission lines and road signage under the brand Woodline Long-Life Poles. Thesen Sawmill, situated just outside George, supplies structural timber in Western, Southern and Eastern Cape.
A PERFECTLY SITUATED INDUSTRY In 2014, the company was named winner in the Builders’ and Construction Materials’ category, ahead of a number of leading companies within the industry. Top 500 measures companies’ financial success, as well as their policies and human resource strategies. The publication then lists the top five companies in 100 different categories.
PG BISON AT A GLANCE
PG Bison, a South African company with South African owners, is headquartered in Wynberg, Johannesburg. The company is a subsidiary of KAP Industrial Holdings and a Level 3 B-BBEE contributor. It currently owns 89 000 hectares of land (41 100 of which is afforested) and its board plants and plantations are scattered across Gauteng, Mpumalanga and Eastern Cape provinces. Although the company is a significant employer with close to 1 800 people on its payroll, thousands more are employed by small businesses that provide supporting services to its plants.
PRODUCTS OF INTERNATIONAL QUALITY
PG Bison is currently one of the largest suppliers of wood-based panel products to the building industry in South Africa and also exports to a variety of African countries. The company’s main focus is the production of particle board and medium-density fibreboard. These are then upgraded and sold under the brands Bisonbord (premium quality, interior grade particle board), SupaWood (exceptional medium-density fibreboard), DecoBord (BisonBord or SupaWood surfaced with a resincoated pre-finished, printed paper foil), and MelaWood (durable, scratch and moisture resistant melamine-faced board). “Our products are used predominantly in home storage, such as kitchen and built-in cupboards, as well as domestic furniture. We also supply to the office furniture and shop fitting industries,” says Gerhard Victor, CEO of PG Bison. Testimony to the scale of the company’s
Victor says the company’s timber plants and plantations are ideally situated to contribute toward economic development. “Plantations and sawmills are by definition situated in rural areas. It goes without saying that these areas face significant challenges in education, healthcare and employment. “The industry is already putting a roof over South Africans’ heads through its structural timber products. Many forestry companies – including PG Bison – are making investments in ways that stimulate locally owned small enterprise developments. Past partnerships with local and provincial government have brought development to our most vulnerable communities,” he explains.
A FOCUS ON RURAL DEVELOPMENT
A recent report (December 2014) by the Fibre Processing and Manufacturing Sector Education and Training Authority (SETA) highlights a serious focus in the industry on responsible forestry operations and how forestry
Ugie Board Plant fibre drying section
activities contribute to the economic and environmental viability of local communities. For example, more than R600-million will be invested by PG Bison in the rural economy of the Mkhondo Local Municipality (Piet Retief) in eastern Mpumalanga over the next five years. This investment in a brand new, state-ofthe-art continuous press will enable the company to produce 1 000 m3 of particle board per day. “We will, therefore, be able to deal with South Africa’s future demand for chipboard. However, besides the fact that Piet Retief is well located for the Gauteng market, I am particularly pleased with the fact that we are building plants in local economies where they are most needed,” comments Victor. Once the plant is completed, the company’s total chipboard capacity will be 2 000 m3, as its facility in Ugie in the Eastern Cape also produces 1 000 m3 per day. This is sold under the brands BisonBord and MelaWood.
PARTNERSHIPS WITH GOVERNMENT According to Victor, PG Bison’s particle board plant, operating in Ugie in the Eastern Cape since 2008, is a good example of a combined effort between government and the private sector to invest in rural communities. The Industrial Development Corporation values the combined investment in infrastructure and services at more than R2.1-billion. Of the SMMEs in the services industry around the plant, 80% are locally owned and 85% are black-owned or B-BBEE compliant. The enterprises employ 2 369 people, of whom 2 115 (90%) are local residents of Ugie. These include timber suppliers, informal sawmills, community forestry groups, Working on Fire and a wide range of other suppliers – from security and gardening services, to cleaning and road maintenance. Most importantly, this number excludes direct employees paid by PG Bison itself and represents the downstream value added. Finally, the Eastern Cape Development Agency has found that 4 814 jobs have been indirectly created. These are people employed by service providers – grocery and clothing stores – outside the timber industry, who survive through the spending of salaries earned within the industry.
“If this model can be applied to other afforested areas in our country – in Mpumalanga, KwaZulu-Natal and Eastern Cape – we have the potential of bringing significant transformation to the rural landscape,” says Victor.
INVESTING IN PEOPLE PG Bison is home to an extensive range of social investment initiatives, varying from interventions in schools in communities around its plants and plantations, to supporting the establishment of black-owned and staffed SMMEs (a few examples of which are listed below). • Through the company’s bursary scheme, R1.1-million was invested in the education of eight employees. In many cases this has proved to be a golden ladder from being an ordinary employee at a plantation, to being a qualified forester. • The company’s fully accredited training centre supports its bursary programme. The centre offers a General Education and Training Certificate in General Forestry, including Basic Chainsaw and Brush Cutting. Its busiest year on record was 2012-2013, when 868 learners qualified. • The company has also created a vegetable farming business in Ugie in partnership with the local municipality. It is staffed and owned by 13 residents and supplies the local hospitality industry. The area under cultivation is in the process of being expanded to more than six hectares. PG Bison furthermore supports community-owned sawmills that supply both local communities and companyowned plants with raw material.
“PG Bison is home to an extensive range of social investment initiatives, varying from interventions in schools in communities around its plants and plantations, to supporting the establishment of black-owned and staffed SMMEs.” DIRECT COMMUNITY INVOLVEMENT An example of the company’s support to the education sector is a continuous initiative where four schools in Ugie are assisted with infrastructure such as classrooms and ablution facilities. Textbooks and strategic development frameworks within school management are also provided. These and other interventions have led to the pass rate in these four schools increasing by 20% over the past six years. Furthermore, the company employs young, unemployed adults as teaching assistants. Many of them have received access to bursary schemes, which allow them to study toward a variety of degrees. “We appreciate the fact that there is always more work to be done when it comes to rural development and rightly so,” comments Victor. “However, I can proudly say that it is still possible to be born into a poor rural area, only to rise to the fullness of one’s potential.”
THE FUTURE OF STATE-OWNED
COMPANIES IN SOUTH AFRICA by Lynne Brown, Minister of Public Enterprises
State-owned companies (SOCs) in South Africa need to provide security of supply that is reliable, affordable and innovative with clean audits, appropriately remunerated executives and community and skills development initiatives. The vision is for all entities to be financially sustainable and environmentally compliant.
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“The DPE has ensured stringent adherence and alignment to key policy and planning documentation - these include the National Development Plan (NDP) and New Growth Path (NGP).”
TAKING THE BULL BY THE HORNS The Presidential Review Committee (PRC) on state-owned enterprises (SOEs) focused on identifying the gaps and overlaps in governance, management and government participation of SOEs in the economy. The diagnosis was done with the intention of securing the future of national SOEs and national state-owned companies (SOCs) and by so doing, securing the future of South Africa’s socio-economic stability. The Department of Public Enterprises (DPE), as the department responsible for corporate governance of substantial SOCs in the energy, transport, forestry and other sectors, submitted proposals to the February 2015 Cabinet Lekgotla on the implementation approach of the PRC recommendations with a view to the
streamlining and strengthening of SOCs. All but two have been approved. This focused approach has become the trademark of the guarantee to all citizens regarding optimally performing SOCs in the immediate future. It is a hallmark for which the DPE, in collaboration with key players, has taken the lead. The policy and planning space of government is also synchronised with delivery imperatives. The Medium Term Strategic Framework (MTSF) 2014 to 2019 has prioritised the rapid roll out of the capital expenditure programme. Given the current economic outlook, there is an increased dependency on the state to re-ignite the economy and ensure the stability of our future. The SOCs are critical to the execution of the government’s programmes over the next five years – in addition to being key agencies of delivery.
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The DPE has ensured stringent adherence and alignment to key policy and planning documentation – these include the National Development Plan (NDP) and New Growth Path (NGP). Over and above this, there is an understanding that as SOCs stabilise and increase in their net contributions to the fiscus and overall quality of life, the ideal is for each entity to have the scope to serve as a catalyst for new industries and socioeconomic potential in the region. OVERCOMING ADVERSITY, OPTIMISING OPPORTUNITY The South African government is a global leader in the developmental state space and since 1994 has been a pioneer in the realisation of the transformation agenda. Firmly at the helm of people-centric governance, it is committed to honouring the social compact of uninterrupted security of supply to all South Africans. The DPE is core to this social compact and in collaboration with key role-players remains committed to achieving this goal. With a substantial portfolio of SOCs, the DPE has both expertise and experience in the impact the Entities have on scale – both positively and adversely. In the last five years (2009 to 2014) of the previous MTSF period, there has been clear national and regional illustration of the increasing role that SOCs have to play in the economy through the implementation of the New Build or Capacity Expansion Programme. Without this Programme, in spite of the challenges, Southern Africa may well have featured in political atlases, very differently. During this period, Transnet successfully launched its Market Demand Strategy that dramatically increased infrastructure expenditure from R110-billion to R300-billion over the next seven years. The national freight carrier has improved by 24% in terms of on-time train departures compared to the previous year and by 5% compared to budget; this was due to monitoring and follow-up
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on the root causes of deviations. Ease of business is central to industrial growth. Furthermore, the turnaround plan for Denel has begun to yield results and refocusing of the SAFCOL and Alexkor Strategies are continuing. Such encouraging impacts are not confined to South Africa – ramifications, good or bad, are central to the stability of the region and the Continent as a whole. In the 21 years since the dawn of democracy, significant lessons have been learnt in this respect and what is surfacing as key is the collective responsibility of all government departments and stakeholders to effectively deliver through national SOCs. In this context, DPE is no longer a shareholder ministry de facto responsible for only six strategic enterprises but has been recognised as a pioneer in this field to comprehensively support and revolutionise all of South Africa’s 735 State-Owned Enterprises through a mix of measures and policy instruments – which includes legal and governance as well as administration capacities. Only a department, which has a net worth of past deliverables, would be mandated by Cabinet (following consultation) with such responsibility – and only a department with critical and scarce skills would be in a position to accept such a mammoth portfolio. This responsibility is the duty government has to all citizens and all people who have tasked political principals to ensure the meeting of their constitutional rights. The agreement that SOCs’ performances are a national, rather than solely departmental effort, has resulted in reorganisation that optimally locates entities where they are most appropriately utilised to optimise delivery. Cabinet makes such decisions in the interests of the national agenda and to ensure that commitments to the electorate are met. In the case of SAA, the need for improvement in operational performance together with strong financial performance has been recognised. As a result, in
December 2014, Cabinet resolved to shift the oversight of SAA to National Treasury. Collaboration between the Department and National Treasury remains crucial for the full turnaround of the national carrier. An additional shift has been the transfer of Broad Band Infraco (BBI) from DPE to DTPS for full optimisation. The BBI shift is the realisation of government’s resolve that ICT sector SOCs must be consolidated for effective execution of the South Africa connect strategy to achieve the 2020 broadband universal access target. Unequivocally committed to research and good governance as a primary component of government business, the DPE aims to ensure optimal shareholder oversight and reform through effective policy, research and legislation. Re-building public confidence in public entities of such a substantive nature demands this leadership. Whilst the use of shareholding in government as an instrument to achieve developmental objectives is not new, it can be extremely powerful when done correctly – and needs to be managed extremely carefully as the sustainability of these enterprises ultimately depends on their on-going financial viability. The balance between transformation and financial imperatives must be constantly monitored, for when one outweighs the other, the adverse effects are felt by the very people who entrusted government with this care in the first place.
“The SOCs are critical to the execution of the government’s programmes over the next five years - in addition to being key agencies of delivery.”
THE FUTURE OF STATE-OWNED COMPANIES IN SOUTH AFRICA
This government continues to remain both transparent and accountable in every sector and is the first to acknowledge that current energy constraints are negatively affecting the economy. However, recently, Eskom has shown progress in remodelling. One critical milestone is the commissioning of Medupi Power Station’s unit 6 in the second quarter of this financial year. This achievement is adding an additional 800MW to the grid which effectively translates into relieving pressure on the current severely constrained grid. Eskom is accelerating its programme to build Kusile and Ingula power stations which are scheduled to add an additional 10 000 MW to the grid between June 2015 and May 2020. Transnet too is accelerating, aiming to increase transporting volumes of cargo to rail, with a target of 330MT shifted by 2019 compared to the current 207 MT – thereby freeing up the roads. For the Southern African region, this is critical and a step toward regional integration and improved stability. Ensuring financial sustainability of national
SOCs is a key focus. The 2016 CAPEX for both Eskom and Transnet will substantially increase and see an injection into the already large collective asset value of these two SOCs currently at R740-billion. BATHO PELE, WITHOUT DOUBT The national SOCs are re-defining socioeconomic landscapes through continued tangible skills development and meaningful employment for South Africa’s youth in spite of energy and logistic challenges. As at 31 December 2014, a total of 3 939 new trainees were enrolled at national SOCs, of which 209 were artisan trainees; 384 were technician trainees; 228 were engineering trainees; and eight were cadet
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various experiential learning programmes. With regard to “Improving the Quality of Education” as per the Basic Education Accord, Government, through SOCs, has taken a deliberate decision to bring technology and promote Mathematics and Science to rural and disadvantaged schools that ordinarily would be neglected in terms of mainstream support initiatives. CONCLUSION The future of South Africa’s SOCs is intertwined with the future of all South Africans – the future of our SOCs can therefore be understood as the future of our people. It is a future we are looking forward to.
pilots. In addition, 3 110 trainees were enrolled in various sector specific training programmes. Over and above this, Eskom (through the Strategic Youth Development Initiative) has ensured the enrolment of 1 916 matriculants into the utility’s trade skills programmes as well as 560 graduates into
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RICHARD VRIES
GROUP CHIEF EXECUTIVE OFFICER
VALUE PROPOSITION GIBB is a leading multi-disciplinary engineering consulting firm based in South Africa with 67% black ownership. The firm has a strong African orientation with a large geographical footprint on the continent. The firm has been operating since 1956 and has proven capabilities in delivering world-class projects of any magnitude. GIBB prides itself on delivering high quality projects underpinned by an independently certified ISO 9001 quality system since 1999. GIBB recognises and appreciates the potential offered by the African continent. The firm has, over the years, developed an in-depth understanding of the challenges of developing infrastructure in Africa. GIBB has executed various, complex projects across various sectors and engineering disciplines across many African countries. The firm remains committed to achieving excellence in every project, and is proud to be the firm of choice for the Continent’s greatest engineers, who are leading experts in their fields. GIBB’s technical expertise is enhanced through our relationships with various global partners. GIBB is conscious of the environment in which it operates in and continuously seeks ways to offer sustainable solutions on its projects. GIBB recently secured the South African Professional Services of the Year Award and Productivity SA Award. GIBB’s long track record of industry awards is a testament of recognition by industry peers. The winning combination of top talent, in-depth industry knowledge, well-earned reputation for excellence and commitment to timeous, within budget delivery ensures that the client is guaranteed ultimate success of every project. GIBB has executed projects in Angola; Cameroon; Djibouti; DRC; Ethiopia; Gambia; Kenya; Malawi; Mauritius; Mozambique; Namibia; Rwanda; Senegal; Uganda; and Zimbabwe. The firm also boasts offices in Botswana; Ghana; Lesotho; Nigeria; Seychelles; Swaziland; Tanzania and Zambia.
COMPANY INFORMATION Year founded: 1956 Founding members: David Hill and Leo Kaplan Employees: 790 SA Branches: Bloemfontein; Durban; Cape Town; East London; Pretoria; Johannesburg; Port Elizabeth; Queenstown; Mthatha, Newcastle Trade affiliations: GBCSA, MESA SAACPP, SABOI, SANCOLD, RFA Strategic partnerships: BBCBE BUSINESS & FINANCE Turnover: R 1 061 704 019 Operating profit: R 123 309 501 Net profit: R 74 789 176
Financial year-end: 28 February 2015 Subsidiaries: GIBB (Pty) Ltd, Arcus GIBB Nigeria, GIH Limited, ACE GIBB, SVA International (Pty) Ltd Holding company: GIBB Holdings (Pty) Ltd Bank: Nedbank Limited, Zenith Bank Plc, Skye Bank Plc, Access Bank Plc, Bank One Limited Accountants: LDP Inc. JSE listing and date: N/A Foreign listing and date: N/A Current client base: In excess of 2000 Major accounts / key clients: Sanral, Eskom, Transnet, Rand Water, OR Tambo District Municipality
CONTACT INFORMATION Group CEO: Richard Vries Chief Financial Officer: Mohamed Mayat Marketing & Communications Manager: Wanda Pretorius Human Resources Executive: Philip Barnard Physical address: 14 Eglin Road; Sunninghill; Johannesburg Postal address: PO Box 2700, Rivonia, 2128 Telephone: 011 519 4600 Email: rsewchurran@gibb.co.za Website: www.gibb.co.za
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LEADERSHIP, STRUCTURE AND PEOPLE WHAT IT TAKES TO BE A REQUISITE ORGANISATION
by Andrew Olivier
Requisite Organisation (RO) is the name given to a holistic body of work that offers proven principles and practices around how organisations should be designed and operated, based on building and maintaining strong relationships aimed at achieving goal directed outcomes.
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LEADERSHIP, STRUCTURE AND PEOPLE
FEATURE
“This messy, unpredictable and stressful process of transition offers no guarantee of success. Failure is all too common, but when successful, a new order emerges and a new level of work complexity is created.”
THE FOLLOWING THREE STRANDS AND THEIR SPECIFIC CHARACTERISTICS CONSTITUTE A REQUISITE ORGANISATION (RO): Levels of Work Complexity (Structure) Talent Management, specifically capability usage (People) Effective Managerial practices (Leadership) RO, also referred to as scientific management, was pioneered by Dr Elliott Jaques and developed into an integrated set of models, tested principles and global applications across different industries over a period spanning more than fifty years. RO comprises three integrated facets: Structure, People and Leadership and has documented applications globally, across industries such as Defence, Telecommunications, Mining, Energy,
Construction, Health, Government, Financial Services, Hospitality and Religious Organisations. This article will largely focus on the first strand – that unpopular but necessary topic of hierarchy and using levels of work complexity, the vertical axis of organisational design. Hierarchy remains the most efficient way of structuring an enterprise, if its basic principles are understood. It is not about power or prestige, but about adding value. Some Theory – the Growth of Organisational Complexity Organisations are complex adaptive systems and evolve by creating, adding, modifying or discarding pieces on their journey. New levels of work emerge to meet demands generated by higher level of contextual complexity, which may be self-directed or environmentally imposed. Organisations continually shape shift in response to their environments.
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The Nobel Prize winner, Ilya Prigogine’s work showed that any system, in response to increasing energy, would eventually implode (fail) or transform to something new at a higher level of complexity. Ashby’s Law of Requisite Variety states that internal complexity must match internal conditions and no perfect state is ever reached or reached for long.
LEVELS OF WORK COMPLEXITY
complexity resulting in short time spans of decision-making. Each work theme is based on increasing complexity. “Complexity may be defined in terms of the number of variables operating in a situation, the clarity and precision with which they can be identified, and their rate of change”
RO states that in order for an organisation to be successful it needs to have clearly separated Levels of Work Complexity, with each theme performing unique functions:
This messy, unpredictable and stressful process of transition offers no guarantee of success. Failure is all too common, but when successful, a new order emerges and a new level of work complexity is created; the organisation moves into a new state of existence. Successful organisations become more complex over time. Nature abhors scarcity and equilibrium, loving abundance (growth), seeming chaos and simplicity of design.
Each work theme has a unique value add that is not the same as any other level and will only develop in response to events, external or internal For a new level of work to be added successfully the lower level must function well, iteratively Each work theme has a naturally occurring decision-making time span, defined as the amount of time before the level above can judge the outcome of the most complex decisions (Jaques, 1989). At Work level VII, it may be up to fifty years before the real impact of the decisions can be felt. The market has dumbed down
The Added Value Domain is where operational efficiency, productivity and expertise are critical. It is where most businesses operate and is focused on achieving outputs in the most cost effective manner, providing efficient services and being able to respond or initiate quickly. Work is about serving a known client base with known products and services and asking if the systems, processes and procedures are still doing what they should be doing and if it is possible to do them more effectively.
DOMAINS AND WORK LEVELS ADDED VALUE DOMAIN
(time span of decision making up to two years) – operational, delivering on strategy, quicker, faster, better service … where services delivered, things made, mined most of work takes place here!!
INNOVATIVE DOMAIN (time span of decision making up to 10 years) – this is where business strategy is decided upon and agreed; new innovations, markets, products, alliances, JVs, research, M&A.
VALUES DOMAIN
(time span of decision making not greater then fifty years)
LEVEL I Q: (QUALITY) LEVEL II S : (SERVICE) LEVEL III P : (PRACTICE) HINGE LEVEL LEVEL IV SD : (STRATEGIC DEVELOPMENT) LEVEL V SI : (STRATEGIC INTENT)
HINGE LEVEL LEVELVI CC : (CORPORATE CITIZENSHIP) LEVEL VII CP : (CORPORATE PRESCIENCE) EMERGENT LEVEL Emergent Level driven by need for long term sustainability- supra context for Values Domain
Acknowledgments ; Jaques, Stamp and Hoebeke. From the Working Journey©, Andrew Olivier 2003.
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Innovative projects sourced here - people and resources assigned, approved @ Level V. ‘representatives’ collective resources, ranging across boundaries.
LEADERSHIP, STRUCTURE AND PEOPLE
Here, pride in the work, its quality and delighting customers and guests is important as it holds reputation, brand and image.
immediate team on a day-to-day basis. Roles in this work level would include team leader or supervisor. Work is in the now, with short time spans.
The second ‘work chunk’ is the Innovative Domain and is the executive levels of management. Here strategic direction is set and frameworks created to take the organisation forward over a time span from three to ten years. This domain is responsible for stakeholder and shareholder relationship management, the forging of joint ventures, new products, services and innovative ideas. This is the top end of an independent company or division within a large group. There are two work levels found within this domain.
Work Level II or Service work is the application of knowledge and experience to a particular situation or issue. This includes ensuring availability of resources, dealing with and resolving issues so that image and reputation of the organisation is enhanced. This would all take place within the prescribed boundaries and available resources. The concern remains to ensure Quality outputs when managing a permanent team or being a specialist.
The third domain is concerned with the management of multinational and global enterprises and has two work levels. The Values Domain is about shaping business units within their individual contexts, sensing changing values, nascent trends and patterns and making them tangible and real to stakeholders and shaping institutions that are able to interact with these new forces. Changes at these levels are across boundaries and cultures and deals with multiple and diverse unified whole systems. The impact of decisions made at this level may not be felt for 50 years. DESCRIPTORS OF WORK LEVEL Work Level I or Quality is defined as using skills and training to produce an output that is largely prescribed, tangible, measurable and meets a specific need, within a specified time. This work is critical because it ensures the organisation’s viability and represents the first point of contact with the public and needs great care and attention. Pride in work is hugely important, as is the understanding of products, the value of the company and being embodiments thereof. This Level of Work involves managing oneself or an
Roles in this work level include the first level of full-authorised line managers. Such roles are accountable for task assignments of the team; use of resources and equipment, setting an annual budget, ensuring adequate team members and approving expenditure. It is also the first level where we find specialists and professional services (accountants, doctors, scientists). Work Level III or Practice is the work theme of senior management and is concerned with the coordination, integration, planning and management of people and resources in order to achieve specified outputs in an optimal manner. The issues of systems of work becomes a unique value add at this level. Roles in this work level include managers who meet, liaise and coordinate their work with that of other managers at regular management meetings. The span of decision-making may be at a maximum of two years. The two executive work levels – Strategic Development (Work Level IV) which translates the strategic intent of an organisation into business plans, performance and operational objectives, manages continuity and change and
FEATURE
Strategic Intent (Work Level V), which sets direction and is accountable for viability, establishes governance and regulatory frameworks – are held in a state of dynamic tension. This is where GMs are found (Level IV) and CEOs or MDs of a division of a multinational or international. Jacques’s research and that of others shows that over time an individual’s capability unfolds at a predictable rate and generates the need for different and larger work challenges as our way of processing information changes. This deep organic need to seek new challenges is often unnamed, but it is a call to adventure that cannot be ignored. As our capability for decision-making unfolds so our need for challenges increase. In response we seek different roles (paid or unpaid) with greater complexity. This rate of change differs from individual to individual, but all take place within seven Growth Modes. Depending on our Growth Curve we move through different transition points at different ages, entering and growing into new levels of cognitive complexity (our ability to handle ambiguity and uncertainty in exercising judgement when we do not and cannot know the details) and thus work themes or levels. Entry and exit transition points from each cycle can be traumatic, if we are finding ourselves underutilised. If we are in flow, meaning we are appropriately challenged and enjoying what we are doing, we hardly notice this transition. Sadly, too often this is not the case. The challenge is finding the right roles at the right time. If we do not we become underutilised (not using our given capabilities to the full) or overextended (the work challenges take us out of flow and make us uncomfortable).
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‘Flow’ is a sought-after state when we are really connected with our work challenges (paid or unpaid) and find life is fun, stimulating, meaningful and often reflects periods we look back at with fondness. We often tend to forget ourselves during such periods as time and work and fun become one.
This is illustrated in Figure below, the ‘Flow’ graphic below used in the management of Talent Pools: Organisations often map the capability of their talent pools to meet current and future organisational needs. The key reason for this is to ensure availability and ‘flow’ between tasks and those with the need for the challenge.
However, while this capability for dealing with complexity is essential it is not the full picture – employees also need to have the knowledge, skills and experience to deal with the specific role. They should value the work (want to do it) and have wisdom (or EQ) to do it in such a way as to cause no harm.
FLOW (= INDIVIDUAL’S CURRENT ACTUAL CAPABILITY + DOING RIGHT LEVEL OF WORK)
SCOPE OF CHALLENGE
Poor or no decision making and increased risk to enterprise
ANXIETY
(loss of intuition, self worth, abuse)
C UR
WORRY
AP
O EN H – – W RDED ” A ES EW IM R T D OF AN T S D BE NISE HE G T ECO –“ R E AR E ,W
AB
E
Y ILIT
T C E FF
E TH
W O F L O THE W V
E ALU
RK
I S I EC
UR
D E IV
KC
O
ANXIETY
(loss of intuition, self worth - abuse)
Failure to apply mind – increasing wastage and out of control costs – increasing risk to enterprise
Adapted from Michael Czikszentmihalyi (1973) and G Stamp (1993).
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G N I K
FRUSTRATION
CAPABILITY
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E
A
BOREDOM
PERPLEXITY
E N O Z
ME
O ETS
R WO
LL HA
ES NG
W ND
E
LEADERSHIP, STRUCTURE AND PEOPLE
FEATURE
THE IMPORTANCE OF EFFECTIVE MANAGERIAL LEADERSHIP Requisite Organisation has, through its research and observations, identified a number of core managerial leadership competencies that need to be used in daily and longer-term practices. Many of these practices are aimed at building trust and fairness. RO is formal and clear in the use of how to design a business from the ground up, including structure, role types and authority. The Requisite Leadership competencies are regarded as basic essential skills for all who lead a team. All managerial leaders need training to understand the basic competencies and practices needed to be an effective managerial leader. Some examples of these core competencies are: Design strategy to meet level of work requirements Effective planning to deliver the strategy Assigning work with authority both vertically and cross functionally Setting a task so the “what, by when, by whom, with what� is known Leading a team so all contribute and the outcome is achieved on time and budget and the five questions of all employees can be answered Managing relationships effectively to release energy and creativity and achieve outcomes Assuring effectiveness with no harm Understanding processes and systems of Work so systems are requisite Designing flexible and effective structure to deliver the functional outcomes In conclusion a requisite organisation means doing business with efficiency and competitiveness and the release of human creativity (Jaques, Requisite Organisation, 1992).
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FLEET AFRICA
COMPANY PROFILE
KAMOGELO MMUTLANA CHIEF EXECUTIVE OFFICER
VALUE PROPOSITION Backed by over 20 years’ experience in the fleet management industry and significant operational and financial capacity, FleetAfrica manages outsourced fleets on behalf of blue chip companies, government departments, municipalities, mines and state-owned entities. The company’s vision is “to be the number one provider of fleet management solutions on the African continent.” FleetAfrica (a division of Super Group Africa (Pty) Ltd) applies international fleet management best practice to its operations, and utilises leading management information systems and tools to assist customers in making their business models more efficient, and profitable. The company’s experience, infrastructure and general fleet management expertise form the foundation of an effective, structured enterprise and supplier development programme, which operates within the context of the FleetAfrica value chain to open up economic opportunities to previously disadvantaged entrepreneurs. FleetAfrica is proud to have assisted numerous black entrepreneurs in setting up and managing sustainable businesses within the fleet management industry. To date, the FleetAfrica enterprise and supplier development programme has benefited more than 10 previously disadvantaged entrepreneurs, including: Lunganosi Vehicle Inspections, Keyame Logistics, Africa Best Fleet Solutions, Peu Petrolium, Orban Printers and Abonhlane Consulting. Services sourced from these businesses include vehicle condition auditing, the provision of vehicle registration plates, vehicle licensing, vehicle inspections, vehicle branding, vehicle delivery, vehicle maintenance, after-market fitments and human resources support.
COMPANY INFORMATION BUSINESS & FINANCE Turnover: R523-million Operating profit: R116-million Net profit: R118-million Financial year-end: June Holding company: Super Group Africa Pty Ltd ADDITIONAL CONTACT DETAILS: FleetAfrica Head Office FleetAfrica House Super Group Park 27 Impala Road Chislehurston Sandton Tel: +27 11 523 4300 Call Centre: 0800 10 15 20 Email: info@fleetafrica.com
CONTRACTS & AWARDS Industrial standards: ISO 9001: 2008 Recent awards: 2014’s Top 500 first in sector Recent major contracts: Transnet and City of Tshwane
Autoport & VDRC Workshop No.1 Dr Vosloo Drive Bartlett Boksburg Tel: +27 11 397 6810/1 Fax: +27 11 397 6304
FleetAfrica Centurion FleetAfrica Western Cape No 32 Cabernet Street Saxenburg Park No1 Blackheath Tel: +27 21 905 7240 Fax: +27 21 905 7243
ffice Unit 16, 244 Jean Avenue Die Hoewes Ext O 197 Centurion Tel: +27 12 640 4596 Fax: +27 86 522 6333
CONTACT INFORMATION Chief Executive Officer: Kamogelo Mmutlana Chief Financial Officer: Bruce Mcdonald-Watson Business Development Executive: Tshidiso Seoposengwe Physical address: 27 Impala Road, Chislehurston Sandton Telephone: +27 11 523 4300 Email: info@fleetafrica.com Website: www.fleetafrica.com Toll-free/call centre/customer care number: +27 800 10 15 20
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for the real world SWISS PRECISION
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MEDITERRANEAN SHIPPING COMPANY SA THE DEPENDABLE INDEPENDENT
JOHANNESBURG TEL: (011) 263-4000 EAST LONDON TEL: (043) 702-8293 FTW7468
GENEVA SWITZERLAND
CAPE TOWN TEL: (021) 405-2000
PORT ELIZABETH TEL: (041) 505-4800
DURBAN TEL: (031) 360-7911
PRETORIA TEL: (012) 335-6980
WALVIS BAY TEL: (+264) 64 209-600
MSC
COMPANY PROFILE
CHAIRMAN: CAPTAIN SALVATORE SARNO
VALUE PROPOSITION The Mediterranean Shipping Company (MSC) has an innovative, flexible and unique approach to shipping that has allowed the company to grow significantly over the last twenty years. Founded in 1970, MSC is now the biggest user of the South African ports and by 2003 was the second biggest container carrier in the world, operating in excess of 440 container vessels. Their global direct services from South Africa to all continents continue, being enhanced by direct services into West Africa on MSC’s Asia/South Africa/West Africa pendulum service implemented in 2012, which has increased export opportunities into West Africa. Dedicated vessels also service the East African Coast. MSC’s dramatic growth over the past decade can be attributed to two things: the quality management system that aims at consistently improving service levels within the shipping community and MSC’s willingness to initiate change to meet the requirements of clients, principals and meeting environmental issues. The credibility of our service has ensured that we have maintained a large base of loyal customers. With dedicated employees and continuous developments of infrastructure and technology we are growing this base from day to day. Another success for MSC has been the diversification into the business of the company’s own container depots, situated in Durban, Uitenhage, Cape Town, Johannesburg, Pretoria, East London and Rosslyn, which boasts its own rail siding, facilitating clients access to the manufacturing plants, a particularly critical issue for the motoring industry. Our vision, is customer satisfaction. Apart from our on-time delivery policy, we have an unique “one stop shop” concept, whereby, we are able to manage and control the entire logistics to/from our vessel to/ from delivery to door. MSC is a “family” organisation and cultivates a culture of personal commitment and contribution from each of its employees. Its operating principles are based squarely on being fair and honest. We continue to thrive on providing a personal, tailored made service for our individual customers.
CONTACT INFORMATION
COMPANY INFORMATION
Managing Director: Rosario Sarno
Year founded: 1978 Employees: 1290 Branches: 6
Financial Director: Bryan Baylis
• W inner of the prestigious KZN Exporter of the Year and Service Provider Category (2013, 2014, 2015) • Top 500 – SA Best Managed Companies Top 5 in the Shipping Sector (2015)
PRODUCTS/SERVICES OFFERED MSC provides global coverage, linking South Africa globally and directly with East & West Africa, Europe, UK, USA (East & West Coast), Asia, Middle East, India, Far East, South America, Australia, Indian Ocean Islands, Madagascar, Mozambique and East Coast South America. MSC also provides door-to-door logistics solutions within these countries
CONTRACTS & AWARDS Recent awards: • L loyds Loading List / Freightliner Shipping Line of the Year (1996, 1998, 2000, 2003, 2005, 2007, 2011, 2012, 2013, 2014) • PMR Golden Arrow Award – Best Shipping Company in KwaZulu Natal (1999, 2010) • PMR Diamond Award (2011, 2012, 2013, 2014, 2015) – Outstanding 1st overall • Finalist in the KZN Top Business Awards (2013, 2014, 2015)
EMPOWERMENT INITIATIVES Owner Driver Scheme: Total of 385 heavy duty vehicles and 860 trailers for the carriage of containerised cargo. This facility enables previously disadvantaged persons to own their own business by running and managing their own vehicles, which is financed and managed by MSC.
Cadet Training Program: A cadet training program has been arranged by Captain Sarno in co-ordination with the port operator in South Africa – Transnet Port Terminals. The programs allows 25 cadets at any one time (from disadvantaged backgrounds) onto MSC vessels around the world, to obtain work experience / onboard training on ocean going vessels. The program started in September 2012. This is basically an offering from MSC globally to the South African maritime industry.
Chairman: Captain Salvatore Sarno
National Commercial Director: Glenn Delve Human Resources Manager: Max Rowley Physical address: Mediterranean Shipping Company House, 54 Dr Langalibalele Dube Street, Durban, 4001 Postal address: P O Box 10687, Marine Parade, 4056 Telephone: 031 360 7911 Fax: 031 332 9277 Website: www.msc.com
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Healthy Body. Healthy Mind. Keeping Corporate SA healthy for the last 51 years.
At Bestmed Medical Scheme, we’re proud of the fact that we were voted Healthcare Product Supplier of the year 2015 in the recent FIA awards. We’re also proud that we pay 99.2% of claims within 15 days or less. But what we’re most proud of is that over the past fifty one years, our corporate wellness programme has motivated a fortune of people in the workplace to lead healthier, more productive lives. For a medical aid that means business, call us on 086 033 3838, e-mail us at newbusiness@bestmed.co.za or visit www.bestmed.co.za And be part of a winning family.
Better living. Better life. ©Bestmed Medical Scheme 2015 Bestmed Medical Scheme is a registered Medical Scheme (reg. no. 1252) and an Authorised Financial Services Provider (FSP no. 44058).
705549 Top500 F2.indd 1
2015/09/25 9:26 AM
BESTMED MEDICAL SCHEME
COMPANY INTERVIEW
BESTMED MEDICAL SCHEME Bestmed provides great healthcare benefits to nearly 200 000 beneficiaries through their ten unique and flexible benefit options. With Bestmed you get the best when it comes to accessing quality healthcare.
CHRIS JACOBUS LUYT
EXECUTIVE: MARKETING AND DISTRIBUTION
CONTACT DETAILS
Name: Chris Jacobus Luyt Occupation and Position: Executive: Marketing and Distribution Previous Portfolios: Worked at executive level for more than a decade Universities: University of Pretoria, Harvard Business School Qualifications: BA, Hons, MBA CM (SA) Chartered Marketer
TO WHAT WOULD YOU ATTRIBUTE YOUR COMPANY’S TOP 500 RANKING THIS YEAR? Bestmed has grown sustainably over the last decade and a half. Although we have a history that spans over more than 50 years, the recent emphasis on client centricity and broker services has led the company to win some momentous industry awards. WHAT SKILLS DO YOU THINK LEADERS OF THE FUTURE ARE GOING TO NEED? HOW DO YOU IDENTIFY THOSE LEADERS IN YOUR BUSINESS? I have a quote by which I try to live my life: “Some leaders we follow because we fear them. Some leaders we follow because we respect them. A few, however, take us to a place where we wouldn’t have gone ourselves and when we get there, they allow us to say we got there ourselves.” At Bestmed our focus is on nurturing participative leadership. We follow a strong Ubuntu principle where a person is only a person through people. WHAT DOES ETHICAL BUSINESS MEAN TO YOU AND HOW HAVE YOU REALISED THAT? Ethical business is, in a sense, an oxymoron because doing unethical business is not doing business at all. A business that is based on an unethical and corrupt methodology is in its very nature unsustainable. South Africa’s financial sector regulations are reportedly some of the best in the world. At Bestmed we strive to comply with them. IS THE DRIVE FOR SUSTAINABILITY CHANGING THE WAY YOU DO BUSINESS? HOW? Sustainability is the drive to develop business models that take the longterm approach instead of focusing on short-term solutions. The Internet era, the advances in social media and online news means that consumers are becoming more knowledgeable and
expect trusted relations from products and service providers. HOW IMPORTANT IS SOCIAL MEDIA TO YOUR ORGANISATION? HOW HAVE YOU INTEGRATED IT INTO YOUR STRATEGY? Social media has enabled us to stay abreast of current affairs and to know exactly what is happening in the world around us. Five years ago, the idea of having a service provider on your social media was unheard of. Marketing within companies had to undergo a huge shift in the way we communicate and engage with our consumers. It is no small task to communicate directly with consumers in a permission-based model, but an organisation that does not connect with its consumers on social media does not stand a chance to function optimally. It is a continuous challenge. Bestmed aims to become a part of its members’ lifestyle by communicating our core values of better living, better life and our wellness philosophy of living a full, active and happy lifestyle. We appreciate interacting with members on a one-on-one basis on social media and we enjoy the privileges of being able to communicate directly with our almost 200 000 family members through social media. WHERE DO YOU HOPE TO EXPAND/ IMPROVE? Bestmed has the opportunity to expand its market share; and the need to create sustainable health solutions is growing every day. There has never been a better time to be in the health sector based on the plethora of technological advances, challenging economic times and the increasing importance of healthcare products as life expectancy is improving worldwide.
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THE
BIG ISSUE
THE STATE OF THE NATION
MAKING SOUTH AFRICA
A WINNING NATION by Chantell Ilbury
To those with a keen but uninformed eye, first impressions can be deceitful, as I found out in one of my first forays into auctions. I bought a beautiful teak table; it was a rich, ember red in colour with echoes of the quirky 70s in its design. I saw one or two chips on it but shrugged them off as giving the table character. However, on closer inspection at home I noticed the red was simply a veneer and underneath the table was chipboard. I was devastated.
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MAKING SOUTH AFRICA A WINNING NATION
ARTICLE
“If we are to remain a premier league player, we need good quality education. Young people are our pipeline to growth.”
But the table’s functionality found a purpose, so I stuck it in a corner, and as it wore the chips became cracks and eventually the veneer stripped away leaving the table’s coarse composure exposed and vulnerable. It became an eyesore, so I threw it away and forgot about it. However, recent events have brought that table back to mind. As a scenario strategist and facilitator working with executive teams across a wide range of different sectors, including resources, agriculture, manufacturing, health, education and finance, I have been a sounding board for the key uncertainties that are shaping their strategies. In the process I have seen emerge a shift in sentiment – a rather unsettling big picture of the country’s current condition, one in which the word ‘veneer’ seems apt.
Clem Sunter and I speak of a South African scenario gameboard with three possible scenarios defined by levels of global competitiveness and internal stability or social cohesion: ‘Premier League’, where our internal harmony compliments our global competitiveness; ‘Second Division’, where we are poor but peaceful; and ‘Failed State’, where internal conflict rips apart a country that has lost status on the international playing field – it is shown the red card and sent off the field. So where are we? As a nation we’re competitive but shackled by stumbling levels of cohesion, symptoms of a socially driven country seemingly still finding its feet as a fledgling democracy. Compared to the rest of the Continent we are advanced to a degree where we’ve assumed the title of gateway to a rising Africa and as junior member of BRICS we have a bright future ahead of us. Or do we?
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generation that will bear the brunt of making them happen. They will need good research skills, excellent scholarship and leadership on a large scale. Currently South Africa’s leadership is fragmented and the NDP doesn’t seem to be pulling us into one vision for South Africa.
COMPETITIVENESS POSITIVE PREMIER LEAGUE
RELEGATION ZONE
INTERNAL CONFLICT
FAILED STATE
INTERNAL HARMONY
2nd DIVISION
COMPETITIVENESS NEGETIVE
© Chantell Ilbury & Clem Sunter - http://www.mindofafox.com/
If we are to measure up to the claim of the gateway space into Africa and remain a Premier League player, we need to meet the characteristics of a winning nation. It’s worth revisiting those and examining how we measure up. The first of these is a good quality education. Young people are our pipeline to growth. China places great emphasis on education; they think long-term growth, not immediate gains. Lowering pass rates in order to increase the number of passes is a long-term unintended consequence of becoming less competitive. There’s no denying that education is increasingly a concern in this country. Not so long ago we could point to pockets of excellence in education as evidence that the youth following in the steps of our democracy’s founding fathers had a future in the Premier League. But serious concerns around the merit of our children’s education – from pre-primary right through to higher education – now come increasingly to the fore in my strategic discussions with business leaders, who are, more often than not, firstly parents. There is also the issue of how digitalisation’s changing the future
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of the way we work. It has upended the traditional model of the working environment, wrenching control of the means of production from big business and putting it in the hands of the consumer. This is via the creativity of coders who are designing applications and creating startups that disintermediate current business models and make former consumers of services the producers of the same – creating ‘prosumers’. The term ‘availability of skills’ is also appearing increasingly often on a list of the key uncertainties that face many of my clients. It points to an education system that seems out of touch with an increasingly technical and brutally competitive global business environment. But is this really the case? Or are our universities and colleges simply matching curricula to the educational foundations forged at school? Are we preparing our children for the future world of work? These are questions I am often asked and I usually reply with my own question: can business play a part in this extrapolation of skills from the basis of a sound education? James Martin in his book The Meaning of the 21st Century says these changes need to be taught to young people – the
The next characteristic of a winning nation is a strong work ethic and a spirit of entrepreneurship. The fact that almost one-in-three South Africans receive a social grant is a concern. We are the only country in Africa to provide social grants. With such a programme in place where is the encouragement to be entrepreneurial? Winning nations also encourage a high rate of savings. This is difficult in the current global low growth scenario, as times are very hard. Interestingly, it seems the middle-class in particular are feeling the squeeze. On top of this, South Africans are not renowned for having a culture of saving. A winning nation is also reflected in adequate supportive infrastructure for a high-growth economy. Infrastructure for electricity, water, transportation and ICT are of particular importance, and need to be integrated to support optimal growth. An effective government displays the capacity to deal with this complexity. In this respect the South African government is left wanting. Key uncertainties driving many business scenarios I help build are the provision of electricity and water – resources that are critical to a nation’s development, especially around manufacturing and industrialisation. Failure – at national, provincial and municipal level – to design and implement a clear strategy and management plan is reflected in the crumbling infrastructure and almost continuous public displays of frustration around the failures in service delivery. A winning nation also needs to be an export-orientated global player that supplies goods and/or services to foreign markets that they can’t get elsewhere. South Africa is a resource-based economy with huge challenges in our mining and
MAKING SOUTH AFRICA A WINNING NATION
agriculture sectors – two load-bearing pillars of production and employment. However, mining is under stress: resource nationalism has been pushed on to a table already heaving with the weight of unclear policy and ongoing strikes for more pay and a reduction of inequality.
South Africa’s economy is still powered by big business and the government still expects it to be a major employer. There’s seemingly little focus on developing small businesses and removing the obstacles that hinder their movement onto the playing field.
Agriculture is fitful. The issue of land ownership is steeped in fractious emotion, fuelled by the impending changes in property rights for foreigners and generosity in promise to previously disadvantaged South Africans, but uncertainty in policy and delivery. This is worrying for the mega farmers who provide 80% of domestic produce under the shadow of concerns for ‘food security’. Unless a new model can work to balance ownership and to secure production, tensions will remain high. But a winning nation doesn’t rely only on big business such as mining and largescale agriculture – it manages to engender a collaborative balance between big and small business in a dual-logic economy.
One of the most common complaints I hear is around the complexity of regulations for small businesses, especially in dealing with big business who, themselves, are often under regulatory pressure – such as ensuring B-BBEE quota are met when dealing with suppliers. This is not the case in most of Africa, where small businesses thrive on a playing-field that is not only more open, but more accessible. Small businesses give a voice to entrepreneurship; if South Africa is to remain in the Premier League it will need to find a way to ensure that such entrepreneurship is empowered.
ARTICLE
it is here where South Africa seems most at risk. The Organisation for Economic Cooperation and Development (OECD) defines a cohesive society as one that works towards the well-being of all its members, fights exclusion and marginalisation, creates a greater sense of belonging, promotes trust and offers its members the opportunity of mobility. South Africa is just opening up this debate, despite 21 years of democracy and a perceived goal of a Rainbow Nation. The rainbow analogy, many would argue, has long since lost its sparkle and in its place are seemingly impatient and aggravated calls for rapid transformation, despite little clarification on what the term actually means. It’s a word that has been thrust to the forefront of political discourse and hammered in with narrow definitions, power imbalances and a lack of empathy; and it’s hampering meaningful social change.
Social harmony is one of the main characteristics of a winning nation; and
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Movements such as ‘Rhodes Must Fall’ at the University of Cape Town and ‘Open Stellenbosch’ and ‘Luister’ at the University of Stellenbosch are examples of these narrow definitions. The youth seem to have taken transformation as the new revolution. If the debate were robust, but calm and wide reaching, it would be the catalyst for deeper debate and real social evolution. Instead the voice demanding transformation is monologic with little patience for meaningful engagement – hardly constructive towards social cohesion. A comparison would be helpful at this juncture: I have just returned from Kigali in Rwanda – the scene of a protracted and brutal genocide – across ethnic lines – that was playing out at the exact same time that South Africa was enjoying the first breathless steps into democracy. Today, Rwandans will say to you, there are no Tutsis or Hutus, only Rwandans. They have transformed themselves from a divided nation at war with itself to one that is peaceful and proud. Moreover they are driving an economy with 7% growth. South Africa’s growth is hovering around 1.5% and it is a divided nation, increasingly focusing on driving wedges deeper into the divide. True transformation is a multidisciplinary process. South Africans should embrace it holistically, not from the perspective of a single metric. There are three more characteristics of a winning nation we need to consider. The first of those is competitive personal and company tax. The South African fiscus leverages off the back of an assessed taxpayer base of only about 10% of the population. This would be unsustainable in the best of times, but the demands of a burgeoning social grant programme and the increased pressures of a listless economy, are putting extra strain on this fragile, already heavily taxed base. An answer would be to create an attractive environment for foreign direct investment – another characteristic of a winning nation. But South Africa is competing with the rest of Africa, which is opening up and offering huge opportunities for mega-projects, with
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little demands on international companies to play by strict rules of engagement, especially around labour. Many of the international companies I work with say South Africa is also earning a reputation for policy uncertainty – another major barrier to foreign direct investment. And that brings us to the final characteristic of a winning nation – an efficient government; one that builds capacity, optimises processes and presents a lean but effective structure with a clear and decisive vision. Government should be the enabler for business and society, not the meddler or barrier. It should provide intelligible leadership without undue control. Teams in the Premier League earn their place through the guidance of effective leadership. Unfortunately this is where South Africa faces its greatest risk of relegation. It is fair to say that the concerns of most companies I work with are with an eye on the government and are around political will and governance, and, of course, corruption and mismanagement. Processing the language of business leaders, I get the impression that bickering between government and business is the worst it’s ever been. Mistrust is such that it engenders dispiriting levels of social cohesion. Interestingly, these are some of the themes that arose in a recent edition of the BBC TV series ‘Talking Business’ in which I participated. It was titled ‘South Africa in Crisis’. I was intrigued, even a little alarmed, at the boldness of the title and I wondered if it was fair to say South Africa was in a crisis. But if we’re not in a crisis, then what condition are we in? On our scenario gameboard we are currently still playing in the Premier League, but only just. We are in fact skating on the thin veneer that separates us from the Second Division. Our players seem to have lost the focus and the rallying team spirit that helped us in our upward climb not so long ago. The chips and cracks in the veneer are growing and the world has noticed what’s underneath.
But there is a growing flicker of hope. Over the last 15 years I have seen the face of corporate South Africa change. The ‘tip-toe’ period of transformation – when boards danced with regulation – is over and a growing corps of black business leaders is digging in its heels against a government they feel is steering the country away from growth. These leaders are passionate, focused and committed to business and its role in building the county. They’re not backward looking; instead they’re talking about the current reality with open, agile minds and driving our thinking forward. If they are allowed to succeed, they will help steer us away from the veneer, towards a country that is based on solid and clear business principles, one that will climb its way towards the top of the Premier League. If not, then we’ll stumble in the cracks in the veneer and tumble into the Second Division; but with our fractious social condition, a Failed State will not be that far away.
“But if we’re not in a crisis, then what condition are we in? On our scenario gameboard we are currently still playing in the Premier League, but only just.”
Anti-Est. Inspiring a social movement for change. Let go of what you think you know. Question everything. Assume nothing. Unlearn. Anti Est is a movement away from habit and indoctrination and towards a new way of viewing the world – with honest, open eyes. Anti Est asks you to Unlearn so you can learn anew. In a world characterised by consumerism and “mass produced” opinions, it encourages authenticity of thought and conversation, and embraces the craft culture with unexpected, hand-made food and drink. Since it opened in Braamfontein, a previously derelict neighbourhood on the fringe of the Johannesburg city centre, it has become a catalyst for change – encouraging people from the Northern suburbs to rethink where they socialise. And they’ve done so in droves, abandoning the comfort of their usual stomping grounds for a place that sets the stage for a re-examination of what society and years of habit have dictated to be true.
10 years of creating and refreshing South Africa’s most iconic brands. #makeitmeansomething
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THE STATE OF THE NATION
PRESIDENT JACOB ZUMA
MAPS THE WAY FORWARD
At the three-day meeting of the ANC’s 4th National General Council (NGC) held in Gallagher Estate, Midrand, from 9 to 11 October 2015, President Jacob Zuma reaffirmed the ANC’s commitment to transformation and the values expressed in the Freedom Charter – which strives towards a nation that is non-racial, non-sexist, democratic and prosperous.
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PRESIDENT JACOB ZUMA MAPS THE WAY FORWARD
Before the President addressed the 3 000 strong NGC, National Executive Committee member, Jeff Radebe, delivered the 2015 NGC declaration in which the Party’s commitment to a number of ideals were outlined. These incuded rooting out corruption, factionalism, the “buying of members” and “gate keeping” at branch level. Radebe said the ANC’s Integrity Commission’s decisions would be binding on all members. Zuma echoed these concerns and spoke frankly about falling membership, which he attributed to the factionalism, vote buying and gate keeping at branch level outlined in the declaration. A strong anti-corruption message came across loud and clear, with the President calling for life-style audits to be conducted on all civil servants: “Government should conduct lifestyle audits on all employess of the State and its related entities. The vettting process should be expeditied. There should be a single vetting agency to vet all strategically-placed civil servants and those who reject promotion even though it comes with an improved remuneration package.” On the final day of the three day Congress, the NGC resolved to advance women in leadership positions and address the issue of communal landownership for women in rural areas. OTHER RESOLUTIONS AND COMMITMENTS INCLUDED: The call for a speedy promulgation of the amendments to the Mining and Petroleum Resources Development Act – and resolution of the current dispute over the interpretation of the terms of the country’s Mining Charter
ARTICLE
Promotion of energy security and implementation of the energy mix including coal, renewables, gas, nuclear and hydro Support of NEDLAC constituencies to advance discussions on a minimum wage in the South African economy Support for the review of the Preferential Procurement Policy Framework Act The saving of South Africa’s steel production industry The 50/50 parity between men and women principle Prioritisation of mining towns’ settlement programmes including basic services Prevention of the resale of RDP houses Review of the powers of school governing bodies and the fast-tracking of building more schools in villages and townships Fast-tracking the implementation of the National Health Insurance Strengthening the security of tenure for farm workers; land rights for people in communal areas should be formalised Expediting of The Expropriation Amendment Bill The ideals of Pan Africanism – and commitment to good governance, democracy, human rights, justice and the rule of law; a peaceful and secure Africa where development is people-driven, relying particularly on the potential of women and youth; and an Africa that is a strong and influential global player and partner Recommended review of South Africa’s membership of the ICC
Reference: http://www.anc.org.za/
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THE STATE OF THE NATION
GOVERNMENT INITIATIVES
STIMULATE THE ECONOMY by Thembelani Mazibuko
Numerous initiatives are in place to stimulate growth and development in the South African economy. Most recently the South African government has initiated the Accelerated and Growth Initiative for South Africa (ASGISA), the New Growth Path, the National Development Plan and the National Industrial Policy Framework (NIPF), which seeks to articulate South Africa’s overarching approach to industrial development.
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GOVERNMENT INITIATIVES STIMULATE THE ECONOMY
ARTICLE
“The economy is not made up of a set of discrete and isolated activities, but a range of primary and secondary sectors that are fundamentally interlinked and mutually supportive, requiring carefully calibrated, interlocking interventions.” – IPAP The Industrial Policy Action Plan (IPAP) forms part of the NIPF and moving towards 2016 and beyond, the IPAP has the following key focus areas: Public and private procurement: Ensuring State Owned Enterprises are a vehicle for industrialisation by taking on new projects and investing in infrastructure. This key area also focuses on stimulating manufacturing through procurement.
Leveraging South Africa’s resource endowment: xtracting as much value from South Africa’s mining industry E as possible will be accomplished through creating linkages and partnerships between mining and manufacturing companies; and the creation of policies whereby big mining companies favour small suppliers (as well as supplier development) in order to create world class companies in the mining supply chain.
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Support for manufactured exports: This involves increasing South Africa’s competitive advantage by supporting companies and industries, which have already shown that they can compete with the best, and will be done in several ways: •
•
•
•
Partnering with the global Original Equipment Manufacturers (OEMs) in order to assist the Department of Trade and Industry in identifying and nurturing high potential companies to become part of their supply chains. OEMs are able to provide global experts to assist South African companies in enhancing their capability and competitiveness Building and strengthening (through finance, incentives and other measures) well performing companies in the manufacturing sector Growing exports and African regional integration by increasing the number of South African exports into African countries Supporting black industrialists, which speaks to growing manufacturing through increased participation by black industrialists who have historically been excluded from this sector
Deputy President Cyril Ramaphosa has announced plans to create six million new job opportunities by 2019 via the Expanded Public Works Programme. CONTRACTION AND GROWTH ACROSS SECTORS
The Industrial Policy Action Plan goes into great detail regarding the stimulation of growth and job creation. These measures are geared towards using South Africa’s natural resources to stimulate the valueadded sectors of the economy. Some of the measures that are being put in place include building strong and competitive manufacturing with strong growth and employment multipliers; mineral and resource beneficiation which will create growth up and down the value chain; leveraging state infrastructure spend through localisation programmes and designations; using tariffs to the best advantage and cutting down on illegal and substandard imports; clamping down on collusion and price-fixing; expanding financing of industrial companies through finance and incentives; supporting green industries, renewables, energy efficient technologies as well as advanced manufacturing and materials; and lastly, deepening support programmes in automotives, metals, agro-processing, clothing, textiles, leather and footwear. Manufacturing in particular has been identified as a key driver of economic growth with IPAP stating:
labour-intensive, value-adding economic activity in the production sectors, led by manufacturing”. It goes on to say that “manufacturing sectors ‘pull through’ inputs from primary and other manufacturing and service sectors and transform them into high-value products, stimulating employment along the entire value chain.” It makes the argument that these sectors provide additional impetus to downstream sectors particularly in the service industries because manufacturers use, amongst others, financial, travel, IT and security services. The future looks bright for South Africa – but how bright depends on how efficiently the dti and other government departments work together to implement the policy measures that seek to stimulate our primary and secondary sectors. News of investment by Unilever as well as by Gestamp Wind Tower and Hitachi in Atlantis are signs that the dti’s efforts to attract investment are bearing results. At the same time, news that Facebook and Google are soon to open offices in South Africa is encouraging and points to the growth of our knowledge economy.
“The economy is not made up of a set of discrete and isolated activities, but a range of primary and secondary sectors that are fundamentally interlinked and mutually supportive, requiring carefully calibrated, interlocking interventions.” REFERENCES CHALLENGES AHEAD http://soer.deat.gov.za/608.html
Since the early 1990s, economic growth in South Africa has been driven mainly by the tertiary sector, including wholesale and retail trade, tourism and communications. The country is now moving towards becoming a knowledge-based economy, with a greater focus on technology, e-commerce, financial and other services. The latter half of 2010 saw the manufacturing industries enjoying a period of growth. This, however, did not last and 2011 showed major contraction amid ongoing depressed global conditions. How well the secondary sector performs in South Africa is integrally linked to performance in the primary sector. Amid falling commodity prices and slowing demand from China, there have already been over 23 000 job losses in the mining sector.
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One of the biggest challenges will be the implementation of the measures outlined in IPAP. Tariffs and import duties that favour large economies such as China and the United States need to be addressed. Another area of concern is the possibility of collusion wherein big companies undermine government’s procurement from small business by artificially charging below-cost price knowing that smaller companies cannot compete. ‘Duopolies’ and ‘oligopolies’ may also use their buying power to force primary producers to only sell to them. The government therefore needs the political will to ensure there are structures and regulations in place that will pre-empt these challenges. The IPAP further states that in order for long-term development to occur there should be “higher growth, exports and
www.motherjones.com/kevindrum/2009/03/repeal-glass-steagall http://georgewbushwhitehouse.archives.gov/news/ releases/2008/11/20081115-1.html https://www.thedti.gov.za/industrial_ development/industrial_development. jsp http://www.thedti.gov.za/news2013/ ipap_2013-2016.pdf http://mg.co.za/article/2015-08-05-g http://www.techcentral.co.za/ what-can-google-do-for-southafrica/59324/ https://www.thedti.gov.za/editmedia. jsp?id=3185
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*Top500 Companies Index Sorted by company name, sector, and telephone number
A
AC Nielsen Marketing and Media (Pty) Ltd Research Companies ...........................(+27 11) 495 3000
ACTOM (Pty) Ltd Electrical Equipment...............................(+27 11) 820 5111
Adcock Ingram Holdings Limited Pharmaceuticals.....................................(+27 11) 635 0000
Adcorp Holdings Limited Recruitment Groups...............................(+27 11) 244 5300
Adidas SA (Pty) Ltd Sports Apparel.......................................(+27 21) 442 6200
ADT Security (Pty) Ltd Private Security Services........................(+27 86) 010 0911
ADvTECH Ltd Recruitment Groups...............................(+27 11) 676 8000
AECI Limited Speciality Chemicals...............................(+27 11) 806 8700
Aecom South Africa (Pty) Ltd Engineering Groups................................(+27 12) 421 3500
Aegis BPO Holdings South Africa (Pty) Ltd Business Process Outsourcing ..............(+27 11) 461 9000
Afric Oil (Pty) Ltd Gas........................................................(+27 11) 911 4284
African Media Entertainment Limited Broadcasting Contractors.......................(+27 86) 123 7234
African Rainbow Minerals Limited Diversified Mining....................................(+27 11) 779 1300
African Response (Pty) Ltd Research Companies ............................(+27 11) 709 7888
Afrimat Limited Building and Construction Materials / Cement ..............................................................(+27 21) 917 8840
AfriSam (South Africa) (Pty) Ltd Cement..................................................(+27 11) 670 5500
Afrox Speciality Chemicals / Gas.....................(+27 11) 490 0400
AIG South Africa Limited Short-Term Insurance.............................(+27 11) 551 8000
Air Chefs SOC Limited Food Services........................................(+27 11) 978 1881
Air Traffic and Navigation Services Company Limited
Service Delivery (SOC)..........................(+27 11) 6 07 1 000
Airports Company South Africa (ACSA) Service Delivery (SOC)............................(+27 11) 723 1400
Alcatel-Lucent South Africa (Pty) Ltd Telecommunications Equipment.............(+27 12) 648 3038
Alexkor (SOC) Limited Diamond Mining.....................................(+27 11) 788 8809
Allan Gray (Pty) Ltd Asset Management................................(+27 21) 415 2301
Allcare Administrators (Pty) Ltd Medical Aid Administrators.....................(+27 11) 290 6200
Allied Technologies Limited Electronic Products................................(+27 11) 715 9000
Altech Alcom Matomo (Pty) Ltd Telecommunications Equipment............ (+27 11) 235-7640
Amalgamated Beverage Industries
BAE Land Systems South Africa (Pty) Ltd
Beverages - Soft Drinks..........................(+27 11) 676 9000
Aerospace and Dencce..........................(+27 11) 747 3300
Amasondo Fleet Services (Pty) Ltd
Barclays Africa Group Limited
Fleet Management and Vehicle Tracking.(+27 11) 458 7555
Banks.....................................................(+27 11) 350 4000
Amka Products (Pty) Ltd
Barlow Logistics Africa (Pty) Ltd
Personal Products..................................(+27 12) 674 0400
Freight Forwarding ................................ (+27 11) 445 1600
Anglo American Platinum Limited
Barloworld Equipment
Platinum.................................................(+27 11) 373 6111
Industrial Products and Equipment.........(+27 11) 929 0000
Anglo American South Africa Limited
Barloworld Limited
Diversified Mining...................................(+27 11) 683 .9111
Diversified Industrials..............................(+27 11) 445 1000
Anglo Operations Limited
Basil Read (Pty) Ltd
Coal.......................................................(+27 11) 638 9111
Construction Groups..............................(+27 11) 418 6300
AngloGold Ashanti Limited
Beige Holdings Limited
Gold.......................................................(+27 11) 637 6000
Personal Products..................................(+27 11) 976 0900
Annique Health and Beauty (Pty) Ltd
Bell Equipment Limited
Beauty Products.....................................(+27 12) 345 9800
Heavy Machinery ...................................(+27 35) 907 9111
Appletiser SA (Pty) Ltd
Bestmed Medical Schemes
Beverages - Soft Drinks..........................(+27 11) 263 9250
Heavy Machinery ...................................(+27 35) 907 9111
AQRate (Pty) Ltd
BHP Billiton Energy Coal South Africa Limited
BEE Verification Agencies.......................(+27 21) 914 9451
Diversified Mining....................................(+27 11) 376 9111
Aquarius Platinum (South Africa) (Pty) Ltd
Bidvest Food Services (Pty) Ltd
Platinum.................................................(+27 10) 001 2848
Food Services........................................(+27 31) 571 2400
Aramex South Africa (Pty) Ltd
Bidvest Magnum Group
Courier Services.....................................(+27 11) 457 3000
Corporate Security Services...................(+27 86) 124 3770
ArcelorMittal South Africa Limited
Bidvest Magnum Shield Security Services (Pty) Ltd
Steel.......................................................(+27 16) 889 9111
Private Security Services........................(+27 86) 124 3770
Armaments Corporation of South Africa (ARMSCOR)
Bidvest Panalpina Logistics
Aerospace and Dencce..........................(+27 12) 428 1911
Arup (Pty) Ltd Consulting Engineers .............................(+27 11) 218 7600
Aspen Pharmacare Holdings Limited Pharmaceuticals.....................................(+27 31) 580 8600
Assmang Limited Metals and Minerals................................(+27 11) 779 1000
Astral Operations Limited Farming..................................................(+27 12) 667 5468
Aucor Sandton (Pty) Ltd Auction Houses......................................(+27 11) 237 4444
Aurecon South Africa (Pty) Ltd Engineering Groups................................(+27 12) 427 2000
Austro Group Limited Industrial Products and Equipment.........(+27 11) 222 8300
Aveng Africa Limited Construction Groups..............................(+27 11) 779 2800
Aveng Trident Steel (Pty) Ltd Steel.......................................................(+27 11) 861 7111
AVI Limited Food Processing Groups........................(+27 11) 502 1300
Avis Budget Car Hire..................................................(+27 11) 923 3500
Avis Fleet Services Fleet Management and Vehicle Tracking.(+27 11) 552 9000
Avon Justine South Africa (Pty) Ltd Beauty Products.....................................(+27 10) 205 5000
B
Babcock Africa (Pty) Ltd Heavy Machinery ...................................(+27 11) 601 1000
Freight Forwarding .................................(+27 41) 408 6302
Bidvest Protea Coin Group (Pty) Ltd Corporate Security Services...................(+27 12) 665 8000
Bidvest Steiner Hygiene Services....................................(+27 11) 923 9490
Bigen Africa Services (Pty) Ltd Consulting Engineers .............................(+27 12) 842 8700
Bonitas Medical Fund Medical Aid Schemes.............................(+27 11) 262 7060
Bosch Holdings(Pty) Ltd Engineering Groups................................(+27 31) 535 6000
Bowler Metcalf (Pty) Ltd Packaging..............................................(+27 21) 704 2223
Bowman Gilfillan Incorporated Legal Services........................................(+27 11) 669 9000
BP Southern Africa (Pty) Ltd Retail and Commercial Fuels..................(+27 11) 488 5111
Brandhouse Beverages (Pty) Ltd Beverages - Breweries............................(+27 21) 442 7100
Brimstone Investment Corporation Limited Investment Holding Companies..............(+27 21) 683 1444
BSI Steel Limited Steel.......................................................(+27 11) 861 7600
Budget Car and Van Rental Car Hire..................................................(+27 11) 398 0000
Business Connexion (Pty) Ltd Information Technology Groups..............(+27 11) 266 5111
Bytes Document Solutions (Pty) Ltd Office Automation...................................(+27 11) 928 9111
Bytes Technology Group South Africa (Pty) Ltd Information Technology Groups..............(+27 11) 715 9000
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C
Canal Walk Shopping Centre Shopping Centres...................................(+27 21) 529 9600
Cape Town International Convention Centre Company (Pty) Ltd (CTICC) Exhibition and Conference Facilities.......(+27 21) 410 5000
Capital Properties Limited Real Estate Holdings and Developmen...(+27 11) 612 6870
Capitec Bank Limited Banks.....................................................(+27 21) 809 5900
Cargo Carriers Limited Road Freight...........................................(+27 11) 485 8700
Cashbuild Limited Builders Merchants.................................(+27 11) 248 1500
Caxton & CTP Publishers & Printers Limited Media Groups.........................................(+27 21) 929 6200
Cell C (Pty) Ltd Telecommunications (Wireless)................(+27 11)324 4000
Chubb Fire and Security SA Limited Private Security Services........................(+27 11) 761 7000
Cipla Medpro South Africa Limited Pharmaceuticals.....................................(+27 21) 914 0520
Citizen Surveys (Pty) Ltd Research Companies ............................(+27 21) 447 4484
City Lodge Hotels Limited Hotels.....................................................(+27 11) 557 2600
Claremart Auctioneers (Pty) Ltd Auction Houses......................................(+27 21) 425 8822
Clicks Group Limited Diversified Retailers.................................(+27 21) 460 1911
Cliffe Dekker Hofmeyr Inc Legal Services........................................(+27 11) 562 1000
Clover SA (Pty) Ltd Dairy Products........................................(+27 11) 471 1400
Club Travel SA (Pty) Ltd Travel and Tourism..................................(+27 21) 427 1900
Coca Cola (Pty) Ltd Beverages - Soft Drinks...........................(+27 11) 6440666
Comair Limited Airlines....................................................(+27 11) 921 0111
Command Security Services SA (Pty) Ltd Private Security Services........................(+27 21) 511 5109
Compass Group Southern Africa (Pty) Ltd Food Services........................................(+27 11) 209 2400
Consol Glass (Pty) Ltd Packaging..............................................(+27 11) 874 0000
Consolidated Auctioneers Auction Houses......................................(+27 11) 872 1890
Consolidated Infrastructure Group Limited Electrical Equipment...............................(+27 11) 280 4040
Continental Coal Limited Coal......................................................(+27 11) 881 1420
Continental Outdoor Media (Pty) Ltd Outdoor Media.......................................(+27 11) 514 1400
Corobrik (Pty) Ltd Building and Construction Materials........(+27 31) 560 3111
Coronation Fund Managers Ltd Asset Management................................(+27 21) 680 2000
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Country Bird Holdings Limited
Eastgate Shopping Centre
Farming..................................................(+27 11) 447 6044
Shopping Centres...................................(+27 11) 479 6000
Crookes Brothers Limited
Edcon Holdings (Pty) Ltd
Food Processing Groups........................(+27 39) 978 4600
Retail - Soft Goods.................................(+27 11) 495 6000
Skynet Worldwide Express and Logistic Solutions
ELB Group Limited
Courier Services.....................................(+27 21) 912 6100
Ellies Holdings Limited
CSE/Northmec Heavy Machinery ...................................(+27 11) 922 2000
CSIR International Convention Centre Exhibition and Conference Facilities.......(+27 12) 841 3884
Cullinan Holdings Limited Travel and Tourism..................................(+27 11) 770 7751
D
Dairy Belle (Pty) Ltd Dairy Products........................................(+27 11) 506 8600
Datatec Limited Information Technology Groups..............(+27 11) 233 1221
Dawn Wing Courier Services.....................................(+27 11) 961 4800
De Beers Consolidated Mines Limited Diamond Mining.....................................(+27 11) 374 7000
Defy Appliances (Pty) Ltd Household Appliances............................(+27 31) 460 9711
Dekro Paints (Pty) Ltd Paint Manufacturers................................(+27 21) 903 3131
Dell Computer (Pty) Ltd Computer Hardware...............................(+27 11) 709 7700
Deloitte & Touch (Pty) Ltd Accounting and Consulting.....................(+27 11) 806 5000
Denel SOC Limited Aerospace and Dencce..........................(+27 12) 671 2700
DGB (Pty) Ltd Distillers and Vintners..............................(+27 11) 653 1000
DHL Worldwide Express Courier Services.....................................(+27 11) 921 3666
DigiCore Holdings Limited Fleet Management and Vehicle Tracking.(+27 12) 450 2222
Dimension Data (Pty) Ltd Information Technology Groups..............(+27 11) 575 0000
Direct Channel Holdings (Pty) Ltd Business Process Outsourcing ..............(+27 11) 399 6000
Discovery Health (pty) Ltd Medical Aid Administrators.....................(+27 11) 529 2888
Discovery Medical Scheme (Pty) Ltd Medical Aid Schemes.............................(+27 21) 527 1111
Distell Limited Distillers and Vintners..............................(+27 21) 809 7000
Distribution and Warehousing Network Limited (Dawn) Builders Merchants.................................(+27 11) 323 0450
DRD Gold Limited Gold.......................................................(+27 10) 001 4930
E
Easigas (Pty) Ltd Gas........................................................(+27 11) 389 7700
Heavy Machinery ...................................(+27 11) 306 0700
Electrical Equipment...............................(+27 11) 490 3800
Ellies Holdings Limited Household Appliances............................(+27 11) 490 3800
Empowerdex (Pty) Ltd BEE Verification Agencies.......................(+27 11) 883 8548
EmpowerLogic (Pty) Ltd BEE Verification Agencies.......................(+27 86) 111 4003
eNCA (Pty) Ltd Broadcasting Contractors.......................(+27 11) 537 9300
Enforce Security Solutions (Pty) Ltd Corporate Security Services...................(+27 31) 573 7600
Engen Petroleum Limited Retail and Commercial Fuels..................(+27 21) 403 4911
ENRA Technologies CC Business Software Solutions...................(+27 73) 482 4113
Enviroserv Waste Management (Pty) Ltd Waste Management...............................(+27 11) 456 5660
EOH Holdings Limited Information Technology Groups..............(+27 11) 607 8100
Ericsson South Africa (Pty) Ltd Telecommunications Equipment.............(+27 11) 844 2000
Ernst & Young Advisory (Pty) Ltd Accounting and Consulting.....................(+27 11) 772 3000
Eskom Holdings Limited Service Delivery (SOC)............................(+27 11) 800 8111
Esor Limited Building and Construction Materials........(+27 11) 776 8700
Estee Lauder Companies (Pty) Ltd Beauty Products.....................................(+27 11) 516 3000
Europcar Car Hire..................................................(+27 11) 479 4000
Evraz Highveld Steel & Vanadium Limited Steel.......................................................(+27 13) 690 9911
EXP SA Branding and Design Agencies...............(+27 11) 549 5340
Exxaro Coal (Pty) Ltd Coal.......................................................(+27 12) 307 5000
Exxaro Resources Limited Diversified Mining....................................(+27 12) 307 5000
F
Faircape Dairies (Pty) Ltd Dairy Products........................................(+27 21) 557 7600
Faurecia Exhaust Systems SA (Pty) Ltd Automotive Components........................(+27 41) 451 0936
Fedhealth Medical Scheme Medical Aid Schemes.............................(+27 11) 671 2000
Feedem Pitseng (Pty) Ltd Food Services........................................(+27 11) 439 2300
Feltex Automotive Automotive Components..........................(+27 31)4604200
A-Z INDEX
Fidelity Security Group (Pty) Ltd
Hewlett-Packard South Africa (Pty) Ltd
Interwaste Holdings Limited
Corporate Security Services...................(+27 11) 763 9000
Computer Hardware...............................(+27 11) 785 1000
Waste Management...............................(+27 11) 323 7300
First Car Rental
Hino South Africa (Pty) Ltd
Investec Limited
Car Hire..................................................(+27 31) 335 8400
Commercial Vehicles..............................(+27 11) 809 9111
Asset Management................................(+27 21) 416 2000
FirstRand Limited
Hisense SA Sales Holdings SA (Pty) Ltd
Invicta Holdings Limited
Banks.....................................................(+27 11) 282 1808
Consumer Electronics ............................(+27 21) 832 2999
Industrial Products and Equipment.........(+27 21) 929 4780
Fleet Africa
HI-TEC Sports Distributors (Pty) Ltd
IPSOS (Pty) Ltd
Fleet Management and Vehicle Tracking.(+27 11) 523 4300
Sports Apparel.......................................(+27 21) 506 6900
Research Companies ............................(+27 11) 709 7800
Flight Centre SA (Pty) Ltd
Hollard Life Assurance Company Limited
Irvin & Johnson Limited
Travel and Tourism....................................(+27 11) 778 177
Life Insurance.........................................(+27 11) 351 5000
Fishing....................................................(+27 21) 440 7800
Ford Motor Company
Home of Living Brands (Pty) Ltd
Italtile Ceramics Limited
Automobiles.........................................(+27 12) 8 42 2 911
Household Appliances............................(+27 11) 267 3300
Builders Merchants.................................(+27 11) 510 9050
Homechoice Holdings Limited
Itec Group SA (Pty) Ltd
Direct Response Marketing.....................(+27 21) 680 1000
Office Automation...................................(+27 11) 236 2000
G4S Secure Solutions SA (Pty) Ltd
Homemark (Pty) Ltd
Iveco South Africa (Pty) Ltd
Corporate Security Services...................(+27 12) 431 3700
Direct Response Marketing.....................(+27 11) 430 6005
Commercial Vehicles..............................(+27 11) 205 3990
Gallagher Convention Centre (Pty) Ltd
Honeycomb Transformation (Pty) Ltd
Exhibition and Conference Facilities.......(+27 11) 266 3000
BEE Verification Agencies.......................(+27 11) 880 1630
Gibb (Pty) Ltd
Hosken Consolidated Investments Limited
J Walter Thompson Company SA (Pty) Ltd
Consulting Engineers - Mining infrastructure
Investment Holding Companies..............(+27 21) 481 7560
Advertising.............................................(+27 11) 806 8000
..............................................................(+27 11) 519 4600
House & Home Furniture SA
Jasco Electronics Holdings Limited
Glencore Operations South Africa (Pty) Ltd
Furniture Retailers.................................. (+27 21)-980 4000
Telecommunications Solutions................(+27 11) 266 1500
Coal.......................................................(+27 11) 459 2300
HPC
JDG Trading (Pty) Ltd
Global Telesales (Pty) Ltd
Personal Products..................................(+27 11) 840 4000
Furniture Retailers...................................(+27 11) 408 0408
Business Process Outsourcing ..............(+27 21) 415 3550
Hudaco Industries Limited
Johannesburg Water (Pty) Ltd
Glomail (Pty) Ltd
Industrial Products and Equipment.........(+27 11) 657 5000
Water.....................................................(+27 11) 688 1400
Direct Response Marketing...................(+27 87) 1 60 0 250
Huge Telecom (Pty) Ltd
Johnson & Johnson (Pty) Ltd
Gold Circle (Pty) Ltd
Telecommunications Solutions................(+27 11) 603 6000
Personal Products..................................(+27 21) 710 4111
Gaming and Leisure..............................(+27 31) 314 1500
Hulamin Limited
Gold Fields Limited
Steel.......................................................(+27 33) 395 6911
G
Gold.......................................................(+27 11) 562 9700
Gordon Institute of Business Science (GIBS)
I
J
K
Kagiso Media Limited Media Groups.........................................(+27 11) 034 9200
Business Schools...................................(+27 11) 771 4000
IBM South Africa (Pty) Ltd
Kansai Plascon (Pty) Ltd
Graduate School of Business University of Cape Town (GSB)
Computer Hardware...............................(+27 11) 302 9111
Paint Manufacturers................................(+27 11) 549 8000
iBurst (Pty) Ltd
KAP Industrial Holdings Limited
Internet Service Providers.......................(+27 87) 720 7200
Diversified Industrials............................. (+27 21) 808 0900
ICC Durban (Pty) Ltd
Kelly Group Limited
Business Schools...................................(+27 21) 406 1922
Grant Thornton THL Consulting (Pty) Ltd Accounting and Consulting.....................(+27 10) 590 7200
Grid Worldwide Branding & Design (Pty) Ltd Branding and Design Agencies...............(+27 11) 502 4600
Grindrod Limited Shipping.................................................(+27 31) 304 1451
Growthpoint Properties Limited Real Estate Holdings and Development..(+27 11) 944 6000
GWK Limited Agriculture..............................................(+27 53) 298 8200
H
Halewood International SA (Pty) Ltd Beverages - Breweries............................(+27 11) 746 4200
Hans Merensky Holdings (Pty) Ltd Forestry and Forest Products..................(+27 11) 381 5750
Harmony Gold Mining Company Limited Gold.......................................................(+27 11) 411 2000
Hellmann Worldwide Logistics (Pty) Ltd Freight Forwarding .................................(+27 11) 928 7000
Hertz Car Hire Car Hire..................................................(+27 21) 935 4800
Exhibition and Conference Facilities.......(+27 31) 360 1000
Recruitment Groups...............................(+27 11) 722 8000
ICI Dulux (Pty) Ltd
Kimberly-Clark South Africa (Pty) Ltd
Paint Manufacturers................................(+27 11) 861 1000
Personal Products..................................(+27 11) 456 5700
Iliad Africa Limited
King James Advertising Cape Town (Pty) Ltd
Builders Merchants.................................(+27 11) 847 7300
Advertising.............................................(+27 21) 469 1500
Illovo Sugar Limited
Komatiland Forests (Pty) Ltd
Sugar.....................................................(+27 31) 508 4300
Forestry and Forest Products..................(+27 86) 172 3265
Impala Platinum Holdings Limited
Komatsu Southern Africa (Pty) Ltd
Platinum.................................................(+27 11) 371 9000
Heavy Machinery ...................................(+27 11) 923 1000
Imperial Holdings Limited
KPMG South Africa (Pty) Ltd
Diversified Industrials..............................(+27 11) 372 6500
Accounting and Consulting.................... (+27 11) 647 7111
Imperial Logistics
Kuehne-Nagel (Pty) Ltd
Road Freight...........................................(+27 11) 677 5000
Freight Forwarding .................................(+27 11) 574 7000
Incredible Connection
Kumba Iron Ore Limited
IT Component Distributors.....................(+27 11) 258 8300
Metals and Minerals................................(+27 12) 683 7111
Initiative Media (Pty) Ltd
KWV South Africa (Pty) Ltd
Media Agencies......................................(+27 11) 780 6200
Distillers and Vintners..............................(+27 21) 807 3911
Innovation Group (Pty) Ltd
Kyocera Document Solutions South Africa (Pty) Ltd
Business Process Outsourcing ..............(+27 11) 790 5200
Office Automation...................................(+27 11) 540 2600
Internet Solutions Internet Service Providers.......................(+27 11) 575 1000
T O P 5 0 0 / 7 th E D I T I O N
109
L
Lafarge Industries South Africa (Pty) Ltd) Cement..................................................(+27 11) 657 0000
Legacy Hotels and Resorts (Pty) Ltd Hotels.....................................................(+27 11) 806 6888
Lenmed Health Hospital Management & Longterm Care.(+27 11) 213 2078
Lewis Group Limited Furniture Retailers...................................(+27 21) 460 4400
LG Electronics SA (Pty) Ltd Consumer Electronics ............................(+27 11) 323 8000
Liberty Holdings Limited Life Insurance.........................................(+27 11) 408 3911
Life Healthcare Group Holdings Limited and subsidiaries Hospital Management & Longterm Care.(+27 11) 219 9000
Litha Healthcare Group Limited Pharmaceuticals.....................................(+27 11) 516 1700
Lonmin PLC Platinum.................................................(+27 11) 218 8300
L’Oreal South Africa Holdings (Pty) Ltd Beauty Products.....................................(+27 11) 286 0700
Luxor Paints (Pty) Ltd Paint Manufacturers................................(+27 11) 397 6622
M
Maersk (Pty) Ltd Shipping ................................................(+27 21) 408 6911
Mahle Behr South Africa (Pty) Ltd Automotive Components........................(+27 31) 719 7600
Man Truck and Bus SA (Pty) Ltd Commercial Vehicles..............................(+27 11) 928 6800
Mango Airlines (Pty) Ltd Airlines....................................................(+27 86) 101 0217
Manhattan Corporation (Pty) Ltd Mining Services......................................(+27 11) 748 8800
Marpro Trawling Fishing....................................................(+27 21) 440 5600
Massbuild (Pty) Ltd Builders Merchants.................................(+27 11) 797 0400
Massmart Holdings Limited Diversified Retailers.................................(+27 11) 517 0000
Mazor Group Limited Building and Construction Materials........(+27 21) 556 1555
Media Edge CIA (Pty) Ltd Media Agencies......................................(+27 11) 582 6000
Medi-Clinic Southern Africa Limited Hospital Management & Longterm Care.(+27 21) 809 6500
Medihelp Medical Scheme Medical Aid Schemes.............................(+27 12) 334 2000
Mediterranean Shipping Company (Pty) Ltd Shipping.................................................(+27 31) 360 7911
Medscheme Holdings (Pty) Ltd Medical Aid Administrators.....................(+27 11) 671 2000
Melomed Hospital Holdings Limited Hospital Management & Longterm Care.(+27 21) 699 0950
Menlyn Park Shopping Centre
NERA
Shopping Centres...................................(+27 12) 471 0600
BEE Verification Agencies.......................(+27 11) 463 8563
Merafe Resources Limited
Nedbank Group Limited
Metals and Minerals................................(+27 11) 783 4780
Banks.....................................................(+27 11) 294 4444
Mercedes-Benz South Africa (Pty) Ltd
Neotel (Pty) Ltd
Automobiles...........................................(+27 12) 677 1500
Telecommunications (Fixed-Line)............(+27 11) 585 0000
Metair Investments Limited
Netcare Limited
Automotive Components........................(+27 11) 646 3011
Hospital Management & Longterm Care.(+27 11) 301 0000
Metmar Limited
Network BBDO (Pty) Ltd
Metals and Minerals................................(+27 11) 591 0500
Media Agencies......................................(+27 11) 91 20000
Metropolitan Health (Pty) Ltd
Nike South Africa (Pty) Ltd
Medical Aid Administrators.....................(+27 21) 480 4511
Sports Apparel.......................................(+27 11) 256 0700
Mhlathuze Water
Nissan South Africa (Pty) Ltd
Water.....................................................(+27 35) 902 1000
Automobiles...........................................(+27 12) 529 6000
Microsoft SA (Pty) Ltd
Norton Rose Fulbright
Business Software Solutions...................(+27 86) 022 5567
Legal Services........................................(+27 11) 685 8500
Mix Telematics Limited
Nu World Holdings Limited
Fleet Management and Vehicle Tracking.(+27 11) 654 8000
Household Appliances............................(+27 11) 321 2111
Mmakau Mining (Pty) Ltd Mining Services......................................(+27 11) 268 6780
Oceana Group Limited
Life Insurance.........................................(+27 12) 671 8911
Fishing....................................................(+27 21) 410 1400
MOL South Africa (Pty) Ltd
Ogilvy & Mather South Africa
Shipping.................................................(+27 21) 441 2200
Advertising.............................................(+27 11) 709 6600
Mondi Limited
OK Furniture
Forestry and Forest Products..................(+27 11) 994 5400
Furniture Retailers...................................(+27 11) 456 7000Â
Motheo Construction Group (Pty) Ltd
Old Mutual Investment Group (South Africa) (Pty) Ltd
Construction Groups..............................(+27 11) 789 8440
Mpact Limited Packaging..............................................(+27 11) 994 5500
Mr Price Group Limited Retail - Soft Goods.................................(+27 31) 310 8000
MTN Business Solutions (Pty) Ltd Internet Service Providers.......................(+27 11) 235 6500
MTN Group Limited Telecommunications (Wireless)...............(+27 11) 912 3000
Multichoice South Africa Holdings (Pty) Ltd Broadcasting Contractors.......................(+27 11) 289 3000
Murray & Roberts Cementation (Pty) Ltd Mining Services......................................(+27 11) 201 5000
Murray & Roberts Holdings Limited Construction Groups..............................(+27 11) 456 6200
Mustek Limited Computer Hardware...............................(+27 11) 237 1000
Mutual & Federal Insurance Company Limited Short-Term Insurance.............................(+27 11) 374 9111
MWEB Connect (Pty) Ltd Internet Service Providers.......................(+27 21) 596 8300
N
Namibia Breweries Limited Beverages - Breweries..........................(+264 61) 320 4999
Nampak Limited Packaging..............................................(+27 11) 719 6300
Nashua Limited Office Automation...................................(+27 11) 232 8000
Naspers Limited Media Groups.........................................(+27 21) 406 2121
110
T O P 5 0 0 / 7 th E D I T I O N
O
MMI Holdings Limited
Asset Management................................(+27 21) 509 5022
Old Mutual Life Assurance Company (South Africa) Limited Life Insurance.........................................(+27 21) 509 9111
Omnia Holdings Limited Speciality Chemicals...............................(+27 11) 709 8888
Omnia Nitriology Agriculture..............................................(+27 11) 709 8990
Omnicom Media Group SA (Pty) Ltd) Media Agencies......................................(+27 11) 303 2000
Orange River Cellar Co-op Limited Distillers and Vintners..............................(+27 54) 337 8800
Outdoor Network Outdoor Media.......................................(+27 31) 563 5966
P
Palabora Copper (Pty) Ltd Metals and Minerals................................(+27 15) 780 2911
Pareto Limited Real Estate Holdings and Development..(+27 11) 258 6800
Parmalat SA (Pty) Ltd Dairy Products........................................(+27 21) 809 1400
Peermont Global (Pty) Ltd Gaming and Leisure..............................(+27 11) 267 9200
Peermont Hotels & Resorts Hotels.....................................................(+27 11) 557 0557
Pepstores Retail - Soft Goods.................................(+27 21) 937 2300
Petmin Limited Mining Services.......................................(+27 11)706 1644
A-Z INDEX
Petra Diamonds Southern Africa
Revlon South Africa (Pty) Ltd
Savino Del Bene (South Africa) (Pty) Ltd
Diamond Mining......................................(+2711) 702 6900
Beauty Products.....................................(+27 11) 971 0800
Freight Forwarding .................................(+27 11) 437 3000
Pfizer Laboratories SA (Pty) Ltd
Rhodes Food Group (Pty) Ltd
Sea Harvest Corporation Limited
Pharmaceuticals.....................................(+27 11) 320 6000
Food Processing Groups........................(+27 84) 024 6244
Fishing....................................................(+27 21) 468 7900
PG Bison Holdings (Pty) Ltd
Rockwell Diamonds Incorporated
Sechaba Medical Solutions
Building and Construction Materials........(+27 11) 445 3000
Diamond Mining.....................................(+27 53) 531 1300
Medical Aid Administrators.....................(+27 11) 353 0000
Philips South Africa (Pty) Ltd
Rolfes Holdings Limited
Securitas SA Holdings (Pty) Ltd
Consumer Electronics ........................... (+27 11) 471-5000
Speciality Chemicals...............................(+27 11) 874 0634
Private Security Services........................(+27 11) 786 0172
Phumelela Gaming & Leisure Limited
Royal Bafokeng Holdings (Pty) Ltd
Sedibeng Brewery (PTY) Ltd
Gaming and Leisure..............................(+27 11) 681 1500
Investment Holding Companies..............(+27 11) 530 8000
Beverages - Breweries............................(+27 01) 216 1000
Pick ‘n Pay Stores Limited
Royal Bafokeng Platinum Limited
Sedibeng Water
Diversified Retailers / Food Retailers ......(+27 21) 658 1000
Platinum.................................................(+27 10) 590 4510
Water.....................................................(+27 56) 515 0200
Pinnacle Holdings Limited
RoyalMnandi Food Service Solutions (Pty) Ltd
Sekunjalo Investments Limited
IT Component Distributors.....................(+27 11) 265 3000
Food Services........................................(+27 12) 001 7160
Investment Holding Companies..............(+27 21) 427 1400
Pioneer Foods Groceries (Pty) Ltd Beverages - Soft Drinks..........................(+27 21) 974 4000
S
Sentula Mining Limited Mining Services......................................(+27 11) 656 1303
Pioneer Foods Group
SA Airlink (SOC) Ltd
Senwesbel Limited
Food Processing Groups........................(+27 21) 974 4000
Airlines....................................................(+27 11) 451 7300
Agriculture..............................................(+27 18) 464 7800
Power Technologies (Pty) Ltd
SA Express Airways (Pty) Ltd
Servest Hygiene (Pty) Ltd
Electrical Equipment...............................(+27 11) 706 7184
Airlines....................................................(+27 11) 978 9900
Hygiene Servces.....................................(+27 11) 608 1888
Premier Fishing SA (Pty) Ltd
SA Five Engineering (Pty) Ltd
Shell South Africa (Pty) Ltd
Fishing....................................................(+27 21) 427 1400
Engineering Groups................................(+27 21) 905 4110
Retail and Commercial Fuels..................(+27 11) 996 7000
Pretoria Portland Cement Company Limited
SAAB Avitronics
Shoprite Holdings Limited
Cement..................................................(+27 11) 386 9000
Aerospace and Dencce..........................(+27 12) 672 8000
Diversified Retailers / Food Retailers.......(+27 21) 980 4000
PricewaterhouseCoopers South Africa
Saab Grintek Technologies (Pty) Ltd
Sibanye Gold Limited
Accounting and Consulting.....................(+27 11) 797 4000
Electronic Products................................(+27 12) 672 8000
Gold.......................................................(+27 11) 278 9600
Primedia (Pty) Ltd
Saatchi & Saatchi (Pty) Ltd
Siemens South Arica (Pty) Ltd
Broadcasting Contractors / Media Groups.(+27 11) 506 3000
Advertising.............................................(+27 11) 548 6000
Electronic Products................................(+27 11) 652 2000
Primedia Outdoor
Sage South Africa (Pty) Ltd
SMEC South Africa (Pty) Ltd
Outdoor Media.......................................(+27 11) 475 1419
Business Software Solutions...................(+27 11) 304 2000
Consulting Engineers .............................(+27 12) 481 3800
Primserv Group Limited
Sahara Computers (Pty) Ltd
South African Airways (SAA)
Recruitment Groups...............................(+27 11) 691 8000
Computer Hardware...............................(+27 11) 542 1000
Airlines....................................................(+27 11) 978 1000
Puma Sports Distribution (Pty) Ltd
Sahara Computers (Pty) Ltd
Sports Apparel.......................................(+27 21) 551 0832
IT Component Distributors.....................(+27 11) 542 1000
South African Broadcasting Corporation Limited (SABC)
Q
Samsung (Copiers) Office Automation...................................(+27 31) 53 92786
Quality Beverages 2000 (Pty) Ltd
Samsung Electronics South Africa (Pty) Ltd
Beverages - Soft Drinks..........................(+27 21) 534 8070
Consumer Electronics ............................(+27 11) 549 1500
R
Sandton City Shopping Centre Shopping Centres...................................(+27 11) 217 6000
Rand Water
Sandton Convention Centre
Water.....................................................(+27 11) 682 0911
Exhibition and Conference Facilities.......(+27 11) 779 0000
RBA Holdings Limited
Sanitech (a division of Waco Africa (Pty) Ltd)
Specialised Finance................................(+27 11) 483 5000
Hygiene Servces.....................................(+27 11) 823 6060
RCL Foods
Sanlam Limited
Farming..................................................(+27 31) 242 8600
Life Insurance.........................................(+27 21) 947 9111
Rectron (Pty) Ltd
Santam Limited
IT Component Distributors.....................(+27 11) 203 1000
Short-Term Insurance.............................(+27 21) 915 7000
Redefine Properties Limited
SAP South Africa (Pty) Ltd
Real Estate Holdings and Development..(+27 11) 283 0000
Business Software Solutions...................(+27 11) 235 6000
Reebok South Africa (Pty) Ltd
Sappi Limited
Sports Apparel.......................................(+27 31) 459 8800
Forestry and Forest Products..................(+27 11) 407 8111
Remgro Limited
Sasfin Holdings Limited
Investment Holding Companies..............(+27 21) 888 3000
Specialised Finance................................(+27 11) 809 7500
Rentokil Initial (Pty) Ltd
Sasol Limited
Hygiene Services....................................(+27 21) 670 4700
Speciality Chemicals / Gas.....................(+27 11) 441 3111
Reunert Limited
Sasol Mining (Pty) Ltd
Electronic Products..................................(+27 11) 517 900
Coal.......................................................(+27 17) 610 1111
Broadcasting Contractors.......................(+27 11) 714 9111
South African Post Office (SAPO) Service Delivery (SOC)............................(+27 12) 649 7000
South African Travel Centre Travel and Tourism..................................(+27 11) 616 7956
Sovereign Food Investments Limited Farming..................................................(+27 41) 995 1700
Spar Group Limited Food Retailers...........................................(+27 31) 719 1900
Stanlib Limited Asset Management...................................(+27 11) 448 6000
Stephan Welz & Co Auction Houses......................................(+27 11) 880 3125
Strauss & CO Auction Houses......................................(+27 21) 683 6560
Sun International Limited Gaming and Leisure..............................(+27 11) 780 7000
Super Group Holdings (Pty) Ltd Road freight............................................(+27 11) 523 4000
Supercare Services Group (Pty) Ltd Hygiene Services....................................(+27 11) 709 8100
Syntell (Pty) Ltd Business Process Outsourcing ..............(+27 21) 710 2081
T O P 5 0 0 / 7 th E D I T I O N
111
A-Z INDEX
T
Tarsus Technologies (Pty) Ltd IT Component Distributors.....................(+27 11) 531 1000
TATA Automobile Corporation SA (Pty) Ltd Commercial Vehicles..............................(+27 11) 255 9802
TBWA South Africa (Pty) Ltd Advertising.............................................(+27 11) 322 3200
Telkom SA SOC Limited Telecommunications (Fixed-Line) / SOC Service Delivery..... ..............................................................(+27 12) 311 3911
Tellumat (Pty) Ltd Telecommunications Equipment / Telecommunications Solutions ..............................................................(+27 21) 710 2911
Torre Automotive (Pty) Ltd
Vektronix (Pty) Ltd
Automotive Components........................(+27 11) 627 2500
Electronic Products................................(+27 43) 707 1000
Total South Africa (Pty) Ltd
Verimark Holdings Limited
Retail and Commercial Fuels..................(+27 11) 778 2000
Direct Response Marketing.....................(+27 11) 699 8000
Tourvest Holdings (Pty) Ltd
Victoria & Alfred Waterfront
Travel and Tourism..................................(+27 11) 728 0540
Shopping Centres...................................(+27 21) 408 7500
Toyota South Africa Motors (Pty) Ltd
Vodacom Group Limited
Automobiles...........................................(+27 11) 809 9111
Telecommunications (Wireless)...............(+27 11) 653 5000
Trans Hex Group Limited
Volkswagen SA
Diamond Mining.....................................(+27 21)Â 937 2000
Automobiles...........................................(+27 41) 994 4111
Transaction Capital
Voltex (Pty) Ltd
Specialised Finance................................(+27 11) 049 6700
Electrical Equipment...............................(+27 11) 879 2000
Transnet Limited
Vox Telecommunications (Pty) Ltd
Tenova Mining & Minerals (Pty) Ltd
Service Delivery (SOC)............................(+27 11) 308 3000
Telecommunications Solutions................(+27 87) 805 0000
Consulting Engineers .............................(+27 11) 899 9111
Transpaco Limited
Vrystaat Corporation Limited (VKB)
Texton Property Fund Ltd
Packaging..............................................(+27 11) 887 0430
Agriculture..............................................(+27 58) 863 8111
Specialised Finance................................(+27 11) 263 9500
Trencor Limited
Vukile Property Fund Limited
Thales South Africa Systems (Pty) Ltd
Road Freight...........................................(+27 21) 421 7310
Real Estate Holdings and Development..(+27 11) 288 1000
Aerospace and Defence.........................(+27 11) 313 9001
Trustco Group International (Pty) Ltd
The Bidvest Group Limited
Specialised Finance................................(+27 11) 644 6622
Diversified Industrials..............................(+27 11) 772 8700
Truworths International Limited
WBHO Construction (Pty) Ltd
The Brand Union (Pty) Ltd
Retail - Soft Goods.................................(+27 21) 460 2300
Construction Groups..............................(+27 11) 321 7200
Branding and Design Agencies...............(+27 11) 895 9300
TSB Sugar RSA Limited
Wearne Group of Companies
The Hollard Insurance Company Ltd
Sugar.....................................................(+27 13) 791 1000
Cement..................................................(+27 11) 459 4500
Short-Term Insurance.............................(+27 11) 351 5000
Tsogo Sun Holdings (Pty) Ltd
Webber Wentzel
The MediaShop (Pty) Ltd
Gaming and Leisure..............................(+27 11) 510 7700
Legal Services........................................(+27 11) 530 5000
Media Agencies......................................(+27 21) 680 7040
Tsogo Sun Hotels
Werksmans Incorporated
The Petroleum, Oil and Gas Corporation Of South Africa (Pty) Ltd
Hotels.....................................................(+27 11) 510 7800
Legal Services........................................(+27 11) 535 8000
T-Systems SA (Pty) Ltd (TSSA)
Westcon SA (Pty) Ltd
Business Software Solutions...................(+27 11) 254 7400
Telecommunications Solutions................(+27 11) 848 9000
Gas........................................................(+27 21) 929 3000
The Platinum Group (Pty) Ltd Retail - Soft Goods.................................(+27 21) 461 1207
The Radisson Blu Waterfront
U
W
Whirlpool South Africa (Pty) Ltd Household Appliances............................(+27 11) 663 5300
UD Trucks Southern Africa (Pty) Ltd
Wideopen Platform (Pty) Ltd
Commercial Vehicles..............................(+27 12) 564 9500
Outdoor Media.......................................(+27 11) 832 2800
Umgeni Water
Winhold Limited
Water.....................................................(+27 33) 342 1111
Industrial Products and Equipment.........(+27 11) 345 9800
Unilever South Africa (Pty) Ltd Personal Products..................................(+27 31) 570 2911
Wits Business School - University of Witwatersrand
Branding and Design Agencies...............(+27 11) 706 9370
UNISA Graduate School of Business Leadership (SBL)
Woolworths Holdings Limited
The Waste Group (Pty) Ltd
Business Schools...................................(+27 11) 652 0000
Diversified Retailers.................................(+27 21) 407 9111
Waste Management...............................(+27 12) 562 0330
University of Cape Town (UCT)
Woolworths Holdings Limited
The Workforce Holdings Limited
Universities.............................................(+27 21) 650 9111
Food Retailers........................................(+27 21) 407 9111
Recruitment Groups...............................(+27 11) 532 0000
University of KwaZulu-Natal
WSP Group Africa (Pty) Ltd
Thirty Four Degrees South Marketing (Pty) Ltd
Universities.............................................(+27 31) 260 7111
Engineering Groups................................(+27 21) 511 1337
Branding and Design Agencies...............(+27 21) 480 3400
University of South Africa (UNISA)
Tiger Brands Limited
Universities.............................................(+27 12) 429 3111
Food Processing Groups........................(+27 11) 840 4000
University of Stellenbosch
Zurich Insurance Company South Africa Limited
Times Media Group Limited
Universities.............................................(+27 21) 808 9111
Short-Term Insurance.............................(+27 11) 370 9111
Media Groups.........................................(+27 11) 280 3000
University of Stellenbosch Business School (USB)
TNS Research Surveys (Pty) Ltd
Business Schools...................................(+27 21) 918 4111
Research Companies ............................(+27 21) 657 9500
University of Witwatersrand
TNT Express Worldwide (South Africa) (Pty) Ltd
Universities.............................................(+27 11) 717 1000
Hotels.....................................................(+27 21) 441 3000
The South African Breweries (Pty) Ltd Beverages - Breweries............................(+27 11) 881 8111
The Standard Bank of South Africa Limited Banks.....................................................(+27 11) 721 9000
The Switch Group (Pty) Ltd
Courier Services.....................................(+27 11) 437 3300
Toll Global Forwarding (SA) (Pty) Ltd
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Shipping.................................................(+27 11) 565 2600
Value Logistic Limited
Tongaat Hulett Limited
Road Freight...........................................(+27 11) 929 6700
Sugar.....................................................(+27 32) 439 4000
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Business Schools...................................(+27 11) 717 3544
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Bestmed Medical Scheme 2015 © Bestmed Medicalmedical Schemescheme 2015 (Reg. no. 1252) stmed Medical Scheme is a registered Bestmed Medical Scheme(FSP is a no. registered d an Authorised Financial Services Provider 44058).medical scheme (Reg. no. 1252) and an Authorised Financial Services Provider (FSP no. 44058).
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or a medical aid that means business, call us on 086 033 3838, e-mail us at For a medical aid that means business, call us on 086 033 3838, e-mail us at ewbusiness@bestmed.co.za or visit www.bestmed.co.za newbusiness@bestmed.co.za or visit www.bestmed.co.za nd be part of a winning family. and be part of a winning family.
For over 51 years, Bestmed has been For over 51 years, Bestmed has been providing affordable medical aid cover providing affordable medical aid cover through ten unique plans for every stage through ten unique plans for every stage of our members’ lives. Join the family of our members’ lives. Join the family today, and we’ll cover you for life. today, and we’ll cover you for life.
t Bestmed Medical Scheme, we’re proud of the fact that we were voted At Bestmed Medical Scheme, we’re proud of the fact that we were voted ealthcare Product Supplier of the year 2015 in the recent FIA awards. Healthcare Product Supplier of the year 2015 in the recent FIA awards. e’re also proud that we pay 99.2% of claims within 15 days or less. But what We’re also proud that we pay 99.2% of claims within 15 days or less. But what e’re most proud of is that over the past fifty-one years, our corporate wellness we’re most proud of is that over the past fifty-one years, our corporate wellness ogramme has motivated countless people in the workplace to lead healthier, more programme has motivated countless people in the workplace to lead healthier, more oductive lives. productive lives.
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Keeping Corporate SA Keeping Corporate SA healthy for thefor last healthy the last 51 years. 51 years.
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Healthy Body. Healthy Body. Healthy Mind. Healthy Mind.
You can tell You can tell how healthy howa healthy a medical scheme medical scheme is by its cover. is by its cover.
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