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ITHUBA - Changing the narrative and using the national lottery as a vehicle for change
ITHUBA - Changing the narrative and using the national lottery as a vehicle for change - A case study
Excellence from the start
Zamani Holdings was founded in 2008 as an equity funding business by Charmaine and Advocate Eric Mabuza. A consortium of credibleB-BBEE and high profile investors were attracted to form ITHUBA Holdings (RF) (PTY) LTD (RF), a sole purpose vehicle created to operate the South African National Lottery.
In inviting investors to ITHUBA, the leadership gave consideration to various national imperatives which they believed were vital to SouthAfrica’s economic development.These imperatives included acknowledging and implementing the BEE strategy, as a mechanism through which to increase economic participation of previously disadvantaged black South Africans.
A further imperative was beingresponsive to the needs of allstakeholders, including governmentand civil society, particularlyin addressing socio-economicdisparities which still exist amongstmost sectors of our population.
Zamani’s strategic intent waspositively met when ITHUBA wasawarded the third National Lotterylicense, effective June 2015, underthe leadership of Charmaine Mabuza,the Group CEO of Zamani Holdings,which employs 240 employeescountrywide.
Within just 5 months of being awardedthe license, ITHUBA had completedall the roll-out requirements necessaryto begin the National Lottery trading.This included installing 9000terminals in urban and peri-urbanareas, increasing the NationalLottery footprint to 45%; ensuringthat retailers were fully equippedand trained to promote and sell theNational Lottery games; and ensuringthat every operational detail was inplace to ensure a smooth transitionfrom the previous operator.
Long before we knew pandemics such as COVID-19 were so destructive,ITHUBA embarked on a journey to move the National Lottery to the digital realm. With the latest technology and innovation ITHUBA digitised its online playing options and draw processes.
All draws are now conducted using a safe and secured digital method. Through the RNG (Random Number Generator), ITHUBA was able to proceed with draw-based games without interruption, while other Lotteries around the world had to close due to the pandemic.
ITHUBA is the only operator in the world that sells the Lottery through banks, setting the benchmark for Lotteries across the globe. The World Lotteries Association (WLA) recognises ITHUBA as part of the top 5 performing Lotteries globally. Leveraging off the success of the South African National Lottery operator, ITHUBA, Zamani Holdings is looking to use its knowledge and expertise to expand north of South Africa’s borders, into southern Africa. However, its ultimate goal is to become a truly pan-African group supplying the whole continent.
Game Portfolio:
• Since 2015, Ithuba has more than doubled the games in the National Lottery portfolio. This includes the launch of 6 online EaZiwin games, SportStake 8 and Daily LOTTO
• After comprehensive research, Ithuba established that players wanted to play for bigger amounts daily and, as a result, DAILY LOTTO was launched
• In over a year since its launch in March 2019, DAILY LOTTO has paid out more than R817-million to more than 71-million winners
• In 2020 ITHUBA launched 9 EAZIWIN online games
• The launch of USSD and 1 Voucher for greater player convenience in 2020
• The launch of DAILY LOTTO with Standard Bank on their USSD and website channels
• The continued expansion of B2B channel sales with ABSA launching LOTTO and POWERBALL games as their initial offering and FNB launching DAILY LOTTO in March 2021.
Charmaine Mabuza
Founding member and group CEO of Zamani Holdings; CEO of Ithuba Holdings
Charmaine Mabuza is one of South Africa’s leading businesswomen and a true example of entrepreneurial excellence. Women in executive leadership positions are a rarity in the gaming industry and she is among a very small percentage of women who lead gaming companies, and an even smaller percentage of women who lead such industries globally. Charmaine is the first black female to run a lottery operation in South Africa.
In the six years ITHUBA has been operating, she has led the charge to align the company with international best practices and cutting-edge technology, implementing a strategy to move the National Lottery into a digital realm. Charmaine Mabuza is someone entrepreneurs and aspiring leaders can look up to, she truly encapsulates what a true leader is.
She is a firm believer in education and that one should never stop learning. She is setting an example by furthering her studies at Harvard Business School.
Of all the hats that she wears, mom, wife and grandmother are her favourite roles. In her busy schedule, Charmaine always finds the time to spend quality time with her family. She enjoys gardening, cooking and traveling.
Her hard work and resilience have been exemplary and have inspired other women, especially young women to go for their dreams. Long before her role as the CEO of ITHUBA, Charmaine was already breaking boundaries in the business world. She established a name for herself as a director in Wiphold, the first female-owned company to list on the JSE in 1999.
Charmaine Mabuza has displayed remarkable resilience in rising above difficult challenges. She has been praised for her forwardthinking leadership style and ability to handle high-pressure situations, seeking to solve challenges quickly and decisively. She is the driving force behind the formation of ITHUBA. Under her leadership, ITHUBA transformed and changed the narrative of the South African National Lottery.
LEADERSHIP POSITIONS:
• Deputy Chair for the Mpumalanga Provincial University Council
• Former Managing Director of Empilweni Payout Services (Pty) Ltd
• Former Trustee on the Board of GRIP (Greater Rape Intervention Project)
• Former Sheriff of the High Court
• Former member of South African Board for Sheriffs.
AWARDS
• Vision 2030 Top Woman in Education Award for her role in affording access to education for disadvantaged youths.
• Forbes Africa Social Impact Award (2020) for philanthropy through various projects that have uplifted the lives of South Africans from all walks of life.
Ithuba: Enhancing the socio-economic development of South African society
INTERVIEW WITH CHARMAINE MABUZA, CHIEF EXECUTIVE OFFICER, ITHUBA HOLDINGS
Congratulations on winning the Top Empowerment Business Leader of the Year Award 2021. What does winning this headline award mean to you?I am delighted to be acknowledgedfor the efforts ITHUBA is making toempower black people and womenacross all our operations. At ITHUBAwe see empowerment as vital tolong-term business success, sobeing named Top EmpowermentBusiness Leader of the Yearconfirms that our vision is working.
Having black women in leadership positions is nothing new for me. My entrepreneurial spirit was nurtured by my mother, who singlehandedly managed a number of small businesses in KwaZulu- Natal. Her dedication inspired me to follow in her tracks. I am proud that ITHUBA is a leader in Africa’s gaming world and especially proud that our success is primarily due to confident black women.
To what do you attribute your success?We believe that transformation ispart and parcel of delivering on ourbusiness promise. Within the gamingsector ITHUBA stands out because wehave 60% women representation inour executive compared to the industryaverage of 20%. Our operations arealigned with international best practiceand we invest heavily in technologyinnovation.
Our ITHUBA team has reinvigorated the National Lottery brand and provided more opportunities for players to win life-changing jackpots through a revived game portfolio. Well before the national lockdown we moved the National Lottery to a digital realm. This meant that throughout the various lockdown restrictions that we have faced due to Covid-19, South Africans could continue playing on the National Lottery website, on the Mobile App, and through the digital platforms of our banking partners – Absa, FNB, Standard Bank and Nedbank.
ITHUBA also introduced the groundbreaking Random Number Generator draw system, a new method of drawing lottery numbers, which is now the industry standard. The RNG has a high level of systems security as well as internal and independent audit systems that can verify the complete integrity of lottery draws.
What is your “why”? What excites you about what you do?There is nothing that excites memore than knowing that I havemade a difference to somebody’slife. We provide income-generatingopportunities to our small businesspartners across South Africa andthrough our selection of games wegive all South Africans the chance toincrease their wealth.
Our success in expanding the footprint of the National Lottery enhances the socio-economic development of South African society, as we give back approximately 27% of the value of ticket sales to the National Lottery Distribution Trust Fund, which disburses the funds to good causes.
In February this year, ITHUBA contributed financial relief to 82 BBEEE-owned businesses across South Africa. A total sum of R15 million in grants was dispersed to beneficiaries of the ITHUBA Supplier and Enterprise Funding Programme, with companies receiving amounts of up to R1.5 million.
The opportunity to run the National Lottery is a privilege that has enabled ITHUBA to give back to the wonderful people of our country.
What have been some of your major milestones – both personal and business?I have always been convinced that wecannot have a sustainable economyif women and black people remain onthe fringes. In 2015, when ITHUBAstarted operating the National Lottery,I was the only female CEO in thegaming sector. Today, gaming is stillheavily male dominated, so I seetransformation as essential.
There were fewer games available to lottery players when ITHUBA started operating the National Lottery. Within 6 years of operation, we have doubled the number of games in the National Lottery portfolio, thanks to our innovative game design team.
Our partnership with all the major banks has strategically expanded access to the National Lottery. Players can now access National Lottery games on their internet platforms. Three years ago, ITHUBA launched the first ever National Lottery Mobile App. At the same time we mobilised the National Lottery by rolling out 175 000 handheld devices.
Just a year after ITHUBA took over the National Lottery we achieved a significant percentage increase in sales. This made ITHUBA one of the best performing lotteries in the world.
In 2017, the World LotteryAssociation announced that theSouth African National Lotteryaccounted for half of the lottery salesof the entire African continent.
This year, in recognition of ourempowerment efforts, ITHUBAprevailed in two categories of theGender Mainstreaming Awards:Large National Company PositiveRole Model Gauteng, and LargeNational Company Positive RoleModel – South Africa. ITHUBA wasalso a finalist in the Investing in YoungWomen category. On the global front,ITHUBA was recognized by GamingIntelligence as Lottery Operator ofthe Year in Africa, and, as ITHUBACEO, iGaming Business positionedme among the Top 10 Most InfluentialWomen in Gaming.
From a purely business perspective, what particular challenges have you experienced and how did you solve them? When ITHUBA started operating the National Lottery, we had to ensure that we address the gender representation gap within the industry which is primarily male-dominated. We had to ensure that we appoint and equal number of female executives compared to our male-counter-parts. This is a global challenge within the gaming industry, and I am pleased to say that within our executive committee, we have 50% female representation.
What differences have your solutions made to your company?ITHUBA’s ability to keep abreastof innovation and technologyadvancement has allowed us toexpand the footprint of the NationalLottery and increase sales. This inturn has meant we have been ableto put back substantial amounts intothe South African economy and toeducate young professionals, developentrepreneurship, and supportwomen and youth.
When we were awarded the NationalLottery contract in 2015, I becamethe first female CEO in the gamingsector for the whole of Africa andone of the few in the world. Fromthe outset I have made sure thattransforming the racial and thegender profile of the gaming sectorremains a top priority.
How has COVID affected your business model?I believe that any business – big orsmall – should have a continuity planin place, ready to implement in a timeof crisis. We were all caught off guardby COVID-19, but ITHUBA was a jumpahead when the pandemic hit SouthAfrica – we had a strongly flexibleteam in place, and we had alreadyadopted the innovative technologythat enabled us to transition to onlinegaming. Our players were able tomake use of our digital platforms.
Growing online gaming has been oneof the best things we have done forthe economy. Africa will get a piece ofthis big pie.
What would you say is your leadership style?I tend towards a collaborative style.A leader knows how to get the bestout of their team and I take the timeto know and understand my subjectmatterexperts and encourage themto debate and find solutions thatare a win-win for all.
However when the going is tough Iam prepared, as any leader must be,to follow the toughest and loneliestpath. And you need to have astrong vision of where you want thebusiness to go. For example, we seeITHUBA opening out further acrossthe African continent.
How do you relax?I have a very hectic and demandingjob as the CEO, so what I value aboveall is spending time with family overthe weekend.
Do you have a message of hope for our readers out there?While the COVID-19 pandemic hasbeen devastating for our lives and formany people’s livelihoods, we havebecome more realistic about howto handle it. As a country we havelearnt some valuable lessons in howto survive the challenges that it hasbrought. Now that the governmenthas relaxed the restrictions, ourpriority should be to re-energise theeconomy and create more jobs. If wework together with our government,by creating opportunities for morecitizens to enter the productiveeconomy, we will be building a betterfuture for ourselves.
We are Top Peformers in innovations that change lives and the world.
ITHUBA’s innovations and empowerment programmes have positioned us as The Best in the Game. Our continued support and development of cutting-edge technologies has rewritten the lottery space globally. We are proud to be industry leaders in the game of changing lives and making a difference.
www.nationallottery.co.za
