Enterprise Africa November 2017

AFRICA

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

November 2017

www.enterprise-africa.net

NECSA:

Environmental Approval Confirms Nuclear Progress

ALSO IN THIS ISSUE:

SKA / Transnet / Metso / AVBOB

BULOVA.COM

Marine Star Collection A Deep Dive into Style The Marine Star collection’s classic styling tows the line of sport, with bold accents, iconic dial patterns and innovative materials.

EDITOR’S LETTER EDITOR Joe Forshaw joe@enterprise-africa.co.za SALES MANAGER Hal Hutchison hal@enterprise-africa.co.za SALES ADMINISTRATOR Emma Neethling sales@enterprise-africa.co.za SENIOR PROJECT MANAGER Sam Hendricks sam@enterprise-africa.co.za PROJECT MANAGER Shaun Cousins shaun@enterprise-africa.co.za PROJECT MANAGER Shannon James shannon@enterprise-africa.co.za PROJECT MANAGER Aarron Chapman aarron@enterprise-africa.co.za PROJECT MANAGER Emily Taylor emily@enterprise-africa.co.za FINANCE MANAGER Emma Smith finance@enterprise-africa.co.za SENIOR DESIGNER Harvey Tarlton harvey@enterprise-africa.co.za CONTRIBUTOR Manelesi Dumasi CONTRIBUTOR Karl Pietersen CONTRIBUTOR David Napier CONTRIBUTOR Timothy Reeder CONTRIBUTOR Colin Chinery CONTRIBUTOR Djamil Benmehidi CONTRIBUTOR Jukka Lethinien

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Chris Bolderstone – General Manager E. chris@cmb-multimedia.com

//

Nuclear power is a subject that polarises opinion.

Much like the global political environment nowadays, it tends to fall into a binary choice – Trump or Clinton, Remain or Leave, to build more nuclear power stations or not. In fact, the arguments are far more nuanced than this and can be debated long into the night when you consider the many factors that influence a choice of one particular direction.

In this edition of Enterprise Africa we focus on one undoubted positive of the South African nuclear program – the production of nuclear medicine which has grown by 25% in the last year. CEO Phumzile Tshelane tells us about opportunities for further growth with a Canadian manufacturer ceasing production of medical isotopes. We also look at the challenges facing the growth of the SA nuclear program, which despite its vocal opposition is one of the largest and most successful globally.

It isn’t just the nuclear market that South Africa is looking to lead the way – eyes from the global scientific market are on South Africa and the progression of the SKA project which when complete will be the largest radio telescope ever built. The precursor to the SKA – the MeerKAT telescope has already proven its value with contributions to ground breaking research into gravitational waves, and further proves that SA has an important role to play in future collaborations.

We also talk to Petra Diamonds, AVBOB, Metso, BluChip Retail, National Ship Chandlers, Sylko and Transnet to understand more about how these proudly South African organisations are experiencing significant growth where their competitors are losing market share. One thing that is common among all of these exciting and growing businesses is strong leadership. Modern leadership seems to be more about a strict people focus – getting the most out of good people and retaining quality for the longterm benefit of the company.

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What is your leadership style? Get in touch with us and tell us your story of growth. We’re online @EnterpriseAfri1

Advertising & Feature Sales +44 1603 559 701 Editorial & Design +44 1603 559 702 E. info@cmb-multimedia.com www.cmb-multimedia.com CMB Multimedia does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/or in advertisements included in this magazine do not necessarily represent those of the publisher. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. © CMB Multimedia Ltd 2017

Joe Forshaw EDITOR

GET IN TOUCH +44 (0) 20 8123 7859 joe@enterprise-africa.co.za www.enterprise-africa.net

www.enterprise-africa.net / 3

06/NEWS: The News Snapshot A round up of some of the latest news stories from around the country

90/EXHIBITION CALENDAR: Key Upcoming Events Across the Country Our regular update to help you keep track of important events and exhibitions taking place across the spectrum of industry sectors

8/NECSA: Environmental Approval Confirms Nuclear Progress NECSA is growing its market share in the international nuclear medicine industry, and is now ramping up plans for a new nuclear power station in the Western Cape.

Site selection and environmental impact reports are complete and DEA approval has been granted. CEO, Phumzile Tshelane tells Enterprise Africa more about why now is a very exciting time for this organisation.

8/ 4 / www.enterprise-africa.net

CONTENTS

30/

16/

58/

INDUSTRY FOCUS: LOGISTICS 16/TRANSNET NATIONAL PORTS AUTHORITY: Harnessing the Ocean’s Vast Riches 24/NATIONAL SHIP CHANDLERS: Your Maritime Link In Africa

INDUSTRY FOCUS: SCIENCE + TECH 30/SKA PROJECT: Taking Our Understanding of the Universe to New Heights

INDUSTRY FOCUS: MINING

INDUSTRY FOCUS: FINANCIAL 58/AFRICAN FINANCIAL SERVICES: Advancing Black Wealth Accumulation Through Healthy Investments 66/AVBOB: A Funeral Insurance Provider Like No Other

INDUSTRY FOCUS: INSURANCE

38/KOFFIEFONTEIN: Petra’s Decade At Koffiefontein

72/RESOLUTION INSURANCE: Resolution Targets Emerging Consumer

INDUSTRY FOCUS: INDUSTRY

INDUSTRY FOCUS: MANUFACTING

46/METSO: Investing and Crushing It

78/SYLKO: Sylko Stronger Than Ever At 70 years

INDUSTRY FOCUS: SAFETY

INDUSTRY FOCUS: RETAIL

52/SELECT PPE: Protecting People Everyday

84/BLUCHIP RETAIL SOLUTIONS: End-to-End Solutions Drives BluChip Expansion www.enterprise-africa.net / 5

Trade contributes to 15% of GDP

Statistics South Africa (StatsSA) has revealed that not only did the trade industry contribute to 15% of South Africa’s 2015 GDP, but it is also the biggest employer in the formal business sector.

A report released in October by StatsSA shows that the trade industry contributed to 22% of employment.

Industry players surveyed include the accommodation industry, food and beverages, motor and retail as well as the wholesale trade industry.

The survey looked at the private and public enterprises registered for valued-added tax and presented estimates for the 2015 period. The report is also a comparison to its 2012 edition. Areas of focus in the report are the income generated, expenditure and employment created by players in these industries.

The wholesale trade industry led the pack with an impressive R1.65 trillion income accumulated in 2015.

This income represents a 12.4% per annum increase, compared to the R1.16 trillion reported in 2012.

The largest contributors were traders in food, beverages and tobacco. Trade in solid, liquid and gaseous fuels and related products trailed with the lowest income stemming from wholesale trade in other household goods.

The total number of people employed by the wholesale trade and industry sector grew from 458 000 in 2012 to 490 000 by the end of June 2015.

The total income for the retail trade industry in 2015 was R819.4 billion. This represents a significant increase of 8.4% per annum from the R642.7 billion in 2012. The increases reported were for non-specialised stores with food, beverages and tobacco textiles, clothing, footwear and leather goods.

In the retail trade industry, 812 104 people were employed by the end of June 2015. Formal employment in this sector increased from 580 265 in 2005 to 812 104 in 2015. Despite the high employment, the biggest loss in employment during the same period was in ‘repair of personal and household goods and retail trade not in stores’, with 22 444 jobs.

In 2015, total income for the motor trade industry was R600.3 billion. Retail sales of motor vehicles, automotive fuel and sales of car parts and accessories contributed to this income.

The total number of persons employed in the motor trade industry at the end of June 2015 was 270 440.

Retail sales of car fuel employed the largest number of workers with 87 633 people employed, followed by the 80 809 people employed in the motor vehicle retailers. Maintenance and repair of motor vehicles employed by 48 543.

In 2015, R54.5 billion was accumulated in profits for the food and beverages industry. The largest contributor to the total income was restaurants and coffee shops followed by takeaway and fast-food outlets and caterers and other catering services. The income represents an increase of 7.4% per annum compared with the income reported in the corresponding survey of 2012 which saw R44 billion in profits.

The total number of persons employed in the food and beverages industry at the end of June 2015 was 174 601.

This number dropped from 184 663 employees in 2012.

The accommodation industry saw a 6.7% per annum income increase over 2012/2015 period. The total income for this industry in 2015 was R47.2 billion, from R38.9 billion in 2012.

Hotels, motels and inns dominated the industry with their profit income of R34 billion collectively.

A total of 109 196 people were employed in the accommodation industry by 30 June 2015. Employment in this sector industry increased by 1.8% per annum as compared to the 103 492 employees reported in the 2012 survey.

6 / www.enterprise-africa.net

NEWS SNAPSHOT

Robben Island goes green

US investors pledge over $1 billion for SA

Tourism Minister Tokozile Xasa says the launch of a R25 million solar-powered mini-grid plant at Robben Island is the first step in turning the world heritage site green.

The Minister unveiled the solar photovoltaic (PV) power plant last month. The solar PV mini-grid has the capacity of generating 666.4 kilo Watt peak (kWp) of clean energy, reducing the island’s reliance on the existing diesel generating system.

The integrated system carries the entire daytime electricity load and prioritises solar PV energy generation, which is supported by an 828 kilo Watt hours (kWh) battery storage – enabling the use solar energy on cloudy days and at night.

“Today is the celebration of the exposition that reinforces a shared vision for the future of tourism.

“This project is the first step in a longer-term initiative of greening the island and discussions are already underway with the management of Robben Island Museum on the implementation of a range of additional energy efficiency projects,” she said.

Robben Island was selected as one of the eight governmentowned attractions in the pilot initiative to retrofit tourism facilities with solar photovoltaic (PV) energy generating systems.

The other seven sites include the Hantam, Karoo Desert, Free State National Botanical Gardens, the Skukuza and Lower Sabie rest camps as well as the Tshokwane and Nkuhlu picnic sites in Kruger National Park.

Estimates suggest that, thanks to the new system, annual diesel usage will drop from around 619 000 litres to 344,000 litres, saving the Island about 275,000 litres of diesel per annum.

A United States investor has announced plans to invest over $1 billion in South Africa over the next few months.

Ambassador Harold Doley, Jr, the Governor of the African Development Bank, said as an international investor, the mediumterm budget, which gave a frank assessment of the state of the fiscus and the economy, has signalled for investors to commit resources to South Africa.

“We think that what you have done is tabled a watershed budget and as an international investor, you have sent a signal to a group of investors that I represent as a lead investor that we are going to invest over the next several months. We are committing over $1 billion to invest in the South African economy in technology, education and agribusiness.

“Technology is the future to train young people, to employ young people and we want to be your partner.

“I am going to tell you something you will seldom ever hear: we want to come here and pay taxes, we want to make money so we can help you with your deficit,”Doley said.

His remarks come after Minister Gigaba tabled a difficult budget, which saw National Treasury announcing a revenue shortfall as a result of a number of factors – from the recapitalisation of the SA Post Office and the SA Airways to low tax compliance that eroded the tax revenue base.

In his medium budget, the Minister announced a downward revision of the projected economic growth to 0.7%.

He also announced measures to avoid an expenditure ceiling breach and to arrest the widening of the budget deficit.

Gauteng invests R30bn in transport infrastructure

The Gauteng Department of Roads and Transport has invested more than R30 billion in the past three years on public infrastructure projects.

“The investments have been on improving our freeway and provincial road networks, the Gautrain, the modernisation of Metrorail and the roll out of bus rapid transit systems in metropolitan municipalities.

“This is apart from that which has been spent on social infrastructure projects such as schools, hospitals and clinics,” Roads and Transport MEC Ismail Vadi said.

“The injection of funds into transport projects is meant to facilitate improved mobility, allow for social inclusion, stimulate economic growth and enable the development of small and emerging contractors,” MEC Vadi added.

The provincial department has, since 2014, spent over R3 billion undertaking heavy and light rehabilitation of the road infrastructure along various corridors in the province.

“In the current financial year, the department’s allocated budget is R6.8 billion, with R1.9 billion specifically earmarked for transport infrastructure,” MEC Vadi said.

www.enterprise-africa.net / 7

NECSA

NECSA:

Environmental Approval Confirms Nuclear Progress

PRODUCTION: Manelesi Dumasi

NECSA is growing its market share in the international nuclear medicine industry, and is now ramping up plans for a new nuclear power station in the Western Cape. Site selection and environmental impact reports are complete and DEA approval has been granted. CEO, Phumzile Tshelane tells Enterprise Africa more about why now is a very exciting time for this organisation.

www.enterprise-africa.net / 9

INDUSTRY FOCUS: ENERGY

//

The last 12-months have been challenging but we have realised great success,” says South African Nuclear Energy Corporation (NECSA) CEO Phumzile Tshelane. When Enterprise Africa spoke with NECSA at the end of 2016, the organisation was preparing for advancement with the country’s much-discussed Nuclear New Build Programme but also displaying its international importance, leading the way in the production of various nuclear medicines.

While the new build process has come to a halt while legislative issues are resolved, nuclear medicine has provided NECSA with opportunities.

The business is famous for its creation of products including Molybdenum99m, Technetium and Iodine-131 which can be used in various medical procedures. The world’s largest

producer of these nuclear medicines was Canada through its Chalk River reactor in Ontario. But it was announced in September last year that the Chalk River reactor would cease production of medical isotopes, leaving a gap in the market which Tshelane hopes to fill.

“We are seeing success, in fact, in the past year sales have increased by just over 25%,” he says. “This is down to a realignment in the market with the exit of the Canadians. For the production of nuclear medicine, you need a reactor that is up to speed and the NRU reactor in Canada was shut down and because of that there was a market realignment.

“There are new areas that we are exporting to but they are not large - we are simply taking over from the exit of the Canadians and that has been good for us.”

South Africa was already the second largest market share holder before the exit of Canada and the country, through NECSA, is now developing new products to ensure it continues with reliable supply of this vitally important material.

“Product development is still a focus but, of course, new products have to go through various testing stages and clinical trials.

We are starting to test some new products now and others are still in development but this does take time.

“Nuclear medicine is a strong focus for us and we expect to grow in strength as we go into 2018 and 2019.”

NEW BUILD HURDLES In April 2016, a High Court Ruling found that intergovernmental deals between South Africa and other nations including Russia,

Our company was formed in September 1998 and was awarded the sole distribution rights in sub-Saharan Africa for the Shimadzu and Aloka products.

Since September 1998, we have focused on establishing an experienced engineering and sales base both to service the existing 1450 Shimadzu and Aloka clients as well as to establish new clientele.

August 2009 saw the inception of the Nuclear Division engaged in the supply of all Nuclear Imaging equipment, both Clinical and Pre-Clinical, together with all pharmaceutical products used in molecular imaging procedures. AXIM also supply equipment for radiopharmaceutical production and quality control equipment and consumables.

Our company is now represented nationally in South Africa and we have established offices and dealers in all the neighbouring countries within sub-Saharan Africa.

AXIM is the distributor for Mediso Medical Imaging Systems who are world leaders in Pre-Clinical Imaging Systems AXIM have collaborated with NECSA on research in radiopharmaceutical drug development and NECSA purchased the NanoScan PET/CT Pre-Clinical Imaging System in 2014. NECSA will be installing the NanoScan SPECT/CT system in 2018 and AXIM looks forward to continuing their relationship with NECSA in the future.

AXIM House, 63 Old Pretoria Road, Halfway House South Africa Jannie Van Zyl: Product Manager – Nuclear Division Tel: +27 11 314 0140 Fax: +27 11 314 0141 info@axim.co.za www.axim.co.za

10 / www.enterprise-africa.net

NECSA

South Korea and the USA to supply materials for the build of new nuclear reactors in the country was unlawful and the future energy mix was once again cast in doubt.

NECSA is a major part of the nuclear decision making process in the country and consults on all aspects of any potential bid, build or approval.

Currently, it is uncertain if and when the nuclear new build programme will resume and at what level. Previous plans had suggested that the 9600 MW that that the government wants to add to the grid by 2030 would come largely from nuclear power; now the suggestion is that just 1359 MW will come from nuclear with other sources making up the balance. But Tshelane remains upbeat about the situation.

“Some of the hurdles we can

anticipate in advance, such as the court case which means our processes need to be redone.

By in large, the court ruling was not against nuclear at all, it was simply saying that we should have followed different processes. We are complying and we want to ensure we don’t hit that hurdle again.”

In positive news for any nuclear build, South Africa’s Department of Environmental Affairs recently authorised a Final Environmental Impact Report (FEIR) from Eskom for a new nuclear power plant site at Duynefontein in the Western Cape, alongside the country’s existing Koeberg nuclear power plant. NECSA and Eskom were busy deciding between two sites, Duynefontein and Thyspunt in the Eastern Cape, and this environmental approval could mark

a start of progress for a new power station. NECSA Chairman Dr Kelvin Kemm said that the announcement signalled to local industry and the world that the country was committed to going through with the programme.

“Once you have environmental impact authorisation, you can then start with work for site preparation,” explains Tshelane. “It’s a very positive early stage that says we can plan for getting water to the site, bringing electricity to the site, building roads etc so it is a very important step. I expect that with the planning work happening now - putting together a project team - we will soon begin work on the Duynefontein site before execution and contractor-appointment probably after 12-months.

“Our environmental impact

PTPI

PEOPLE | TECHNOLOGY | PROCESSES | INTEGRATED

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Founded in 2013, PTPI has delivered and continues to deliver cutting edge IT Processes, innovative Solutions and highly qualified Resources, to organizations in the public, private, and NGO sectors. We strive to become the most sort after IT Solutions Company globally.

We initiate value-added expertise to ensure that we progressively integrate processes & technology.

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www.enterprise-africa.net / 11

INDUSTRY FOCUS: ENERGY

CEO PHUMZILE TSHELANE

12 / Issue No.46 / www.enterprise-africa.net

NECSA

report which was given to the DEA had two sites as our preferred sites. However, we were keen on the Eastern Cape site although neither have fatal flaws. The DEA has approved Duynefontein which is a great positive as we would have asked for approval there in any case. We now want them to approve Thyspunt. My feeling is that both will eventually be approved but Duynefontein happened to be approved first.

“Duynefontein is next to a currently operating power station and so it is something of a brownfield site but Thyspunt would be a greenfield site so the economic impact will be different.

The greenfield site would require much more development. The economic impact in Thyspunt would be fantastic for the economy there,” he adds.

However, not all agree with the CEO and some do not share his optimism. Critics of South Africa’s nuclear plans suggest that the country does not need extra nuclear generating capacity and, importantly, cannot afford it. There are also environmental concerns regarding any nuclear new build.

But Tshelane remains steadfast is his belief that nuclear is essential in securing future supply.

“When people tell you we don’t need electricity, they’re saying we don’t need to develop the economy or infrastructure. Part of the reason put forward is that we have over capacity right now.

Meanwhile, we have sufficient room for maintaining our plant and a healthy reserve margin.

However, if we add something into the economy, like a smelter or a refinery, suddenly we don’t have a healthy reserve capacity and we will run out again. Secondly, people say we need plant that can be built quickly but of course it’s not only speed of development but how long the plant remains in the system.

For example, a solar plant will be in the system for 12- 15 years and that is not solving the problem, you’re kicking the ball ahead of you and quickly catching up to it.”

Currently, initial plans for the near-term future are for the construction of a new pressurised water reactor power station that can add further nuclear energy to

the 5% of total countrywide power supplied by Koeberg power station.

“People complain that we cannot afford nuclear plant but my answer would be we cannot afford not to have nuclear plant,” says Tshelane. “The way to think of it is that you’re building an income generating asset which is constructed over a period of five years and amortised over a period of 15-18 years. By the time the 18 years comes around, the plant is paying for itself – very early.

The affordability argument shows lack of understanding of how infrastructure financing works.”

YOUNG & POSITIVE In October, a group of young South African nuclear professionals signed a Memorandum of Understanding (MoU) with Rusatom International Network, a subsidiary of Russia’s state-owned Rosatom.

The MoU will see the South African Young Nuclear Professional Society (SAYNPS) and its Russian partner share information and develop frameworks to improve education and public acceptance surrounding nuclear

www.enterprise-africa.net / 13

INDUSTRY FOCUS: ENERGY

energy in South Africa.

Young South Africans will help organise trade exhibitions and conferences, take courses at Russian education institutions, witness nuclear sites in operation first-hand, take part in competitions, and regularly exchange knowledge and experiences.

Tshelane is thrilled to see young people getting interested and involved in the industry. “It’s a partnership between our young nuclear movement and a sponsor of some kind that can give them access to operating plant, plant under construction, communication frameworks and more.

“It’s very much a positive for the industry and we’re excited that the youth are getting to grips with real issues in the nuclear industry.

I expect that any alignments that are happening there, whether with Rosatom or other entities, are very positive in terms of getting our youth exposed to different environments and aligning different thoughts and though processes,” he says.

Of course, at home in South Africa, young professionals active in the industry have access to one of the world’s great nuclear assets, the Safari-1 reactor at NECSA’s Pelindaba

facility. The 20 MW light water-cooled, beryllium reflected, pool-type research reactor has been lauded as one of the world’s most successful thanks to its reliability and safety credentials.

“The reactor continues to operate for more than 300 days each year,” says Tshelane. “We haven’t seen any change in terms of operability and the maintenance regime remains the same. We focus on this piece of equipment as an outlet for nuclear medicine and other industrial applications of radio isotopes. The ageing management continues but we haven’t seen any deterioration in

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Founded in February 2000, initially as a niche African CRO focused primarily on regulatory and monitoring services, our services broadened with the addition of contract auditing in 2008 followed by integration of previously outsourced medical advisory, clinical data management and biostatistical services, enabling an in-house full-service offering since early 2013.

Through a series of strategic acquisitions and joint ventures, TCD’s service offering was subsequently supplemented by the addition of TCD eClinical Solutions (eCS) and TCD Outcomes Research (OR), forming the TCD Group. In November 2016, the TCD Group was acquired by EOH Abantu, a wholly-owned subsidiary of EOH Holdings, a listed entity on the Johannesburg Stock Exchange (JSE).

Clinical Trial Experience Since inception TCD has been awarded over 280 clinical trial contracts, across 20 therapeutic areas, by more than 100, predominantly international, clients.

These contracts have spanned all phases of clinical research ranging from First-in-Human Phase I trials to large multicentre Phase III/ Phase IV trials.

Co-Development Cost-effective risk reduction and quality maintenance in our clients’ projects. Providing input into development and GTM strategies, facilitating fund-raising, participating in co-development and risk sharing.

SERVICES INCLUDE: Early Development We partner with centres of excellence to drive efficient early development, getting our clients to GO/NOGO decisions faster through effective design and conduct of First-In-Human, BA/BE, Biosimilar and other early-phase studies. We have a strong network of pre-clinical services with strategic partners across the globe.

Phase II & III Partnering with our customers to bring products to market efficiently and effectively, saving time, reducing costs and improving quality using innovative and adaptive digital technology in clinical trials.

Late-Phase & Post-Approval Partnering with our clients with expert guidance to lead products through late phase research toward increased market access.

Studies are innovative and practical and include Phase IV trials, Observational Studies, Registries & Retrospective Studies

14 / www.enterprise-africa.net

NECSA

the operability of the plant.

“It’s testament to the fantastic people that we have looking after it and the legacy that they’ve taken over from,” he adds.

In the future, NECSA hopes to capitalise on its advantage in the nuclear medicine market while also making inroads in new industry sectors.

“Medicine is a strong focus but we are looking at commercialising other projects that have nothing to do with medicine,” says Tshelane. “In mining and waste management we are procuring different partners that will assist us with commercialisation of new products and services. Our focus is to strengthen our ability to grow our revenue going forward.

We remain outward focussed to ensure that we build the successful relationships that we need.”

NECSA would benefit from

stability in South Africa’s economic climate, but despite the challenges that exist the organisation continues to perform well and remains relatively unscathed by any slowdown. “We do feel the effects of recession but our focus with our products is external and so the effects are small. If we had a bigger market in South Africa, we would feel much more of an effect but our customer base is outside SA for the main part. The decrease in value of the Rand can make us very attractive to foreign buyers and that is the counter balance to what is happening,” says Tshelane.

So, despite the court ruling in April and the local economy which continues to struggle – both of which have undoubtedly set the nuclear new build process back – the future looks bright for NECSA. It is now a market share leader in nuclear medicine

industry and has opportunities to grow, it is a trusted and reliable nuclear manufacturer, and its facilities remain highly-regarded with an exemplary safety record. Asked if his job remains enjoyable, Tshelane is unequivocal in his reply: “I’m having a ball - I enjoy my work a great deal and I think if it were boring and predictable I probably would have left by now.”

NECSA +27 (012) 305 4911 www.necsa.co.za

CLINICAL RESEARCH OUTCOMES RESEARCH Supported by

eCLINICAL SOLUTIONS HEAD OFFICE +27 12 664 1622 | Design House, 121 Amkor Road, Centurion, 0157 PO BOX 15775, Lyttelton, 0140, South Africa www.tcd-global.com | info@tcd-global.com

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TRANSNET NATIONAL PORTS AUTHORITY

Harnessing the

Ocean’s Vast Riches PRODUCTION: Timothy Reeder

Transnet National Ports Authority (TNPA) represents one of the five operating divisions that comprise the Transnet SOC Ltd colossus. It is responsible for the safe, effective and efficient economic functioning of the national port system, providing infrastructure and marine services at South Africa’s eight renowned commercial seaports.

www.enterprise-africa.net / 17

INDUSTRY FOCUS: LOGISTICS

//

The remit of Transnet National Ports Authority is broad and complex, and encompasses the planning, provision, maintenance and improvement of port infrastructure at all South African ports. Its service offering targets primarily port users, among whom can be found terminal operators, shipping lines, ship agents and cargo owners. In this way, it manages the eight commercial seaports along South Africa’s coastline: Richards Bay, Durban, East London, Ngqura, Port Elizabeth, Mossel Bay, Cape Town and Saldanha.

TNPA performs its ‘landlord role’ as one of the five operating divisions at the core of Transnet, the largest and most crucial part of the freight logistics chain that ensures delivery across South Africa and strives to provide integrated, efficient, safe, reliable and cost-effective

services to promote economic growth in South Africa. Every day Transnet delivers thousands of tons of goods around South Africa, through its network and, perhaps most regularly, both to and from its ports, with this cargo then moved onto ships for export while goods are unloaded from overseas.

Transnet’s annual results for the year ending 31 March 2017 were released in July, and helped to illustrate the strength of the organisation as a whole. CEO Siyabonga Gama spoke of the increase in revenue seen over the period, by 5.3% to R65.5 billion, alongside rises in general freight business and EBITDA by 4.9% and 5% respectively. Another of Transnet’s vital five cogs is its Port Terminals (TPT) arm, whose newly appointed Chief Executive Nozipho Sithole describes its own current situation in similar terms.

“It does feel like everything is going well,” she states. “The economy is doing better and we are seeing some good results. We are now focussing very hard on the customer service offering and everything is working very well.”

Also in July, TNPA announced a significant personnel change of its own, with Ms Shulami Qalinge succeeding Mr Richard Vallihu as Chief Executive (CE) and thus becoming the first ever female CE of the organisation. TNPA described how, “the appointment is of significance for an organisation that prides itself on its advancement of women in the male dominated Maritime Industry.

“50% of TNPA’s executive committee is made up of females, while women can be found across the organisation in Operational roles previously reserved for men.”

Qalinge is tasked with providing

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Barberry are leaders in our field with some six million tons per annum of commodities and products under our rail management, and growing!

Barberry’s solutions are supported through partnerships with trusted service providers, premised on complete visibility of the rail supply chain’s performance. With visibility comes accountability!

Barberry has perfected our specialised role in the rail supply chain. We focus on developing ‘Customer-lead’ solutions, ensuring those value chain activities controlled by the Customer - production cycles, loading, and offloading - are expertly designed and managed so to integrate into the overarching rail supply chain solution.

Transnet supports partners like Barberry, whom they know deliver value through keeping their rail assets ‘in motion’. Transnet is transforming itself through innovation, partnerships and training into the ‘Transnet of Tomorrow’.

These are the very values on which Barberry itself has been built.

As the clearest statement of our commitment to rail, Barberry has expanded beyond its coal loading operations through significant investments in rail transshipment facilities and terminals in Elandsfontein (Johannesburg), Newcastle and Musina.

Barberry is committed to seamlessly migrating road volumes to rail; always striving to enhance the customer’s experience on rail, and to lower the costs of logistics.

Barberry understands rail!

18 / www.enterprise-africa.net

INDUSTRY FOCUS: LOGISTICS

TRANSNET

strategic direction and leadership in the implementation of TNPA’s strategic objectives and operational targets, as well as total oversight of the operation of its eight commercial ports accountable for more than 3500 employees. Shortly after this appointment, the company revealed that the Port of Cape Town’s new fuel storage facility, operated by blackempowered Burgan Cape Terminals, had become fully operational, with the terminal having received its pilot consignment of diesel aboard the tanker Marlin Ammolite in the first week of July 2017.

BURGAN “We are very proud that the Burgan Cape facility was officially opened on 29 August 2017,” Qalinge says of the inauguration. “The facility is an example of TNPA’s mandate to create port capacity to meet demand and to enable private sector investment in our ports.

More importantly, the facility increases black ownership in port operations, with a 30% shareholding and ownership. The capacity of approximately 118,000 cm3

will create opportunities to increase liquid bulk imports and contribute to security of supply for the Western Cape and domestic market.”

The benefits of the new facility were evident even before its opening, according to Qalinge. “There was also significant impact on the local economy,” she continues, “which is one of the criteria that we insist on when port facilities are created. This project injected R870 m into the local economy, and created jobs with construction on the site varying from about 50 personnel at inception to about 450 at the end. South African contractors performed all civil works during construction and 23 permanent jobs were created at the facility.”

The fuel storage and distribution facility is spread over approximately 37,273 m2 of land at the port’s Eastern Mole, and is set to help secure fuel supply in the region. Construction began in late 2015 after TNPA awarded Burgan Cape Terminals a 24-year lease to develop a new independent fuel storage, distribution and loading facility. Of the award, Cape Town Port Manager Mpumi Dweba-Kwetana commented: “With an estimated investment of R890 million, the awarding of this contract to a 30% black owned company in partnership with an international operator speaks strongly to Transnet’s commitment to the Market Demand Strategy (MDS) and the vision of the Operation Phakisa programme of creating capacity ahead of demand and unlocking South Africa’s ocean economy.”

Widely known for its picturesque beaches, as well as a coastline stretching across more than 2,500 km surrounded by waters from both the Indian and Atlantic oceans, the potential for South Africa’s ocean economy is without doubt enormous. Aside from tourism, South Africa has, in recent years, identified four priority areas for development, namely: marine transport and manufacturing, offshore oil and gas exploration, aquaculture as well as marine protection services and ocean governance, under

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INDUSTRY FOCUS: LOGISTICS

the Operation Phakisa heading.

Three years ago, the South African Government announced its intention to implement ocean economy projects which it expected to bear fruit to the tune of more than R20 billion in contributions to the country’s Gross Domestic Product (GDP) by 2019. “Going forward, delivery units have been established in the lead departments to drive the implementation of the detailed delivery plans. We will achieve the growth and the jobs we need in the economy,” President Jacob Zuma said at the time.

These ambitious projects, geared toward unlocking the country’s ocean economy has resulted in investments worth R24.6 billion and created more than 6,500 jobs‚ President Zuma announced in October. Zuma said the largest contribution to the total investment in the oceans economy came from infrastructure development, while it was revealed that the government had also contributed R15 billion. “From our own analysis‚ the total ocean sector contributes approximately 4.4% to South Africa’s GDP‚ with the largest contribution coming from the value chains‚” said Zuma.

OPERATION PHAKISA For a company like TNPA, such a central focus on harnessing the potential of the ocean looks set to have an enormous impact on its fortunes moving forward. “TNPA is at the forefront of Operation Phakisa,” states Qalinge, “as an implementing agency for port facility upgrades as well as introducing new port facilities in order to grow the marine manufacturing sector. We are also funding and upgrading all existing TNPAowned Ship Repair facilities in order to better serve and grow the ship repair market. The refurbishment programme, which commenced in 2014, will ramp up to 2019. This will also improve the positioning of these facilities for future private sector involvement.”

It will look to broaden the scope of its service offering through the initiative too, as Qalinge explains that,

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“through Operation Phakisa, TNPA is seeking private sector investment on a concession basis for new facilities at three ports. These include the establishment of an Offshore Oil and Gas Support Hub at the Port of Saldanha Bay defined by three proposed new projects in rig repair and offshore support, a new Floating Dock for the Port of Richards Bay and Boat Building Cluster at the Port of East London.

These initiatives are being progressed with regard to the prevailing economic conditions and investor appetite.”

Qalinge also describes the trying times sparked by an ever-unsure economy, and such initiatives could not be more welcome in helping TNPA to continue to see growth in its business. “Volume performance of the organisation was reflective of the slowing economy.” she begins, “and the downward revision of volume forecasts by customers and credit rating downgrades of the sovereign banks necessitated a revision of our Market Demand Strategy Capex programme.

With Transnet being a catalyst for economic growth, especially with its infrastructure investment focus, this revision certainly had a knock-on effect on the economy.”

There is, however, light at the end of this particular tunnel. “Recent performance statistics give us a sense of optimism that the next twelve months will see elements of recovery,” Qalinge continues. “Our performance over the past five months of our current financial year 2017/18 does point to some green shoots, especially with commodity prices on international markets stabilising, albeit at much lower levels than those experienced prior to the global economic slowdown.

“Transnet is optimistic that the economy appears to be in recovery, evidenced by the volume performance of the cargoes we handle. However, as a responsible entity we remain cautious in terms of costs and timing of investments.”

NEW TUGS Another key player in the bid to unlock the riches held within South Africa’s waters is South African Shipyards, an empowerment-centric organisation which occupies 11 hectares of prime industrial ground in the Port of Durban Bay and has useable water frontage of almost 300 metres. TNPA selected it as a partner to help fulfil its R1.4 billion, nine-tug construction contract at its KwaZulu-Natal ports, a project which has moved with considerable speed from the outset.

Back in September 2016, TNPA Chief Operating Officer, Phyllis Difeto, remarked that, “The work by Durban ship builder, Southern African Shipyards, on this project has helped to cement the marine ship building and support industry locally. Having a local manufacturer also promises excellent after-sales support for the 35year service life of these vessels. Local ship building expertise is exactly what the government’s Operation Phakisa initiatives aim to leverage in unlocking the potential of the Ocean Economy.”

The order entails the construction of nine new tugs, to be built over three and a half years, as part of a wider fleet replacement programme that covers not only tugs but new dredging vessels and new marine aviation helicopters.

In August, the sixth and seventh of these vessels were successfully delivered, edging TNPA closer to the completion of this significant undertaking. “We are particularly proud of the Tug Build Programme and the partnership with Southern African Shipyards (SAS),” says Qalinge.

“SAS was awarded the largest single contract for the building of harbour craft ever issued by Transnet with an approximate value of R1.4bn. We are particularly pleased with the high quality of manufacturing being produced at the shipyard, and the newly launched tug ‘Usiba’ will be delivered to the Port of Richards Bay in November 2017.” Through this project TNPA and SAS have created

TRANSNET

500 direct and 3500 indirect jobs, together with a minimum of 60% locally manufactured components.

A public celebration of all things maritime, the two-day Durban Port Festival, again used Southern Africa’s busiest commercial port to showcase portside fun for all ages, as part of TNPA’s efforts to bring communities closer to their ports. “The Durban Port Festival was once a regular event attracting thousands of visitors until the advent of the ISPS (International Ship and Port Security) code of safety for Ports in 2004,” Qalinge explains. “This is the second Durban Port Festival after the ban was lifted and it has grown substantially. We are proud to share that the number of people who visited the port during the event has doubled from 8000 in 2016 to about 17,000 this year.”

Durban Port Manager, Moshe Motlohi, added: “We reintroduced the Durban Port Festival in 2016 and it was a great success. This is a rare chance to learn more about the Port of Durban and we hope to demonstrate to the public some of the opportunities available in this sector.” TNPA is actively developing what it calls ‘Smart People’s Ports’ that are people friendly and have a focus on community engagement, tourism, leisure, recreation, and career and business opportunities. It is designed to be not only a celebration of marine and maritime identity, but also a further highlighting of the importance of the Oceans Economy, a vital catalyst for job creation and economic growth.

Qalinge concludes by outlining some of the key areas which to not only consolidate TNPA’s existing market position, but also push it to even greater heights. These are exciting times for South Africa’s maritime sector, and the company is ready to play an integral part. “We have a capital budget of R1,768m for the 2017/18 financial year, and there are a number of key projects included in our 2017/18 budget to create and maintain port infrastructure,” she lays out.

“Some of the bigger projects are

investments in refurbishing ship repair facilities as a major contributor to deliver on Operation Phakisa, which have an estimated budget of R156m for 2017/18. We will continue to oversee the tug replacement programme, and acquire new dredgers to expand our dredging capacity and to replace an ageing fleet. We will also undertake berth deepening and lengthening at the container terminal at the Port of Durban to increase the berth depth from 12.8m to 16.5m, and ensure that the Port of Durban can handle super post panama vessels with drafts of up to 14.5m.”

With coastal goods and services alone estimated to contribute over a third to South Africa’s GDP, TNPA is taking all the right steps to ensure that it is key player in the unlocking of its potential.

TRANSNET +27 11 351 9001 transnet@tip-offs.com transnetnationalportsauthority.net

SHULAMI QALINGE

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NATIONAL SHIP CHANDLERS SA

Your Maritime Link

In Africa

PRODUCTION: Manelesi Dumasi

For more than seven decades, National Ship Chandlers has been supplying the seafaring vessels that dock at African ports with quality goods and services, ensuring that trade keeps flowing across the entire African continent.

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INDUSTRY FOCUS: LOGISTICS

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Thanks to its strategic location at the southern tip of the African continent, touching both the Atlantic and Indian oceans, South Africa has long been a hub for the globe’s shipping activity. The maritime industry is behind some of the development of the country, bringing European sailors welcome respite during their journeys to the Far East and back again. With a coastline stretching more than 1600 miles, the opportunities for maritime activity are enormous and, as technology has advanced and the economy has developed, boats, ships and cruise liners have all become regular guests around the country’s coastline.

Today, South Africa’s ports are world renowned as some of the best there is. Welcoming major vessels

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from all over the planet, the likes of Durban, Cape Town, Port Elizabeth, Richards Bay, Saldanha, Ngqura, East London, and Mossel Bay are a home-away-from-home for international maritime personnel.

But as well as being a welcome rest break for those sailing the seas, the country’s ports are also busy refuelling, repairing and restocking destinations. Ships small and large can dock in South Africa safe in the knowledge that they will be able to quickly and effectively refill empty tanks and stores.

One of the key players in this regard is National Ship Chandlers South Africa. Based at the Port of Durban, this business is widely respected and boasts a 76-year history at the forefront of a vitally important industry. It supplies ships of all type

and size with provisions and bonded goods, technical supplies, engine and cabin supplies, clearing and forwarding services, and more.

Starting life in 1941, National Ship Chandlers supplied passing ships with general wholesale merchandise. The company was founded by Norwegian immigrant, Hans Sorvaag. Business continued very successfully over the next 35 years and in 1976 the business merged with another Scandinavian chandler before opening up in Durban. Then, in 1980, the business expanded to Richards Bay, a key strategic move which allowed National Ship Chandlers to provide for ships in neighbouring ports. Nine years later, head office was moved to Durban and new owner, current CEO John Joannou,

NATIONAL SHIP CHANDLERS SA

made his intentions clear: attack international markets. In 2004, a fourth branch was opened in Port Elizabeth, meaning National Ship Chandlers now covered the entire south-eastern coast of South Africa.

2011 saw the company officially recognised as the largest ship supplier in South Africa, with four strategically located branches at the key port destinations in the country.

“As the ship supplier with the greatest infrastructure in South Africa; National Ship Chandlers can ensure successful supply to each vessel, time and time again,” the company states. “Operating from SA’s four famous, and strategically positioned, ports of call – Cape Town, Port Elizabeth, Durban (Head office) and Richards Bay - our comprehensive infrastructure helps us to retain our position as the most trusted and time-honoured supplier in the country.”

90% of imports and exports in Africa are conducted by sea.

The most active general cargo port is Durban, servicing around 4,500 vessels per year and about 8,3000 containers per month.

Estimates suggest that the port conducts trade worth more than $45 billion, demonstrating the value and importance of on-site local suppliers who can assist in the effective operation of such a significant industry sector.

“Our primary goal is to first provide our clients with the highest standards in quality and service, and then maintain these standards throughout the relationship in order to provide them the consistency they require, and deserve,” says John Joannou.

He has indicated his keen interest in expanding internationally and perhaps the first port of call for growth would be on the continent where the business already has a sound understanding of the industry. Africa is home

to some major ports including Mombasa, Djibouti, Lagos, Abidjan, Tangier and Suez, and all of these locations turn around cruise liner traffic and container vessels – key markets for National Ship Chandlers.

The company is home to four specific divisions that cater to differing needs in the industry namely the logistical supply division, in-house clearing and forwarding division, import and export division, and the cruise liner division.

The logistical supply division is made up of a vast fleet of delivery vehicles that can move supplies to any region on the continent to meet vessels. The company has experience moving goods to places like Port Louis, Port Victoria and Maputo, utilising an effective air and sea freight transport network.

Clearing and forwarding

facilitates the swift and efficient clearing of all shipments, deliveries to ships, imports, exports and the logistical freighting of ship’s spares around the world.

The import and export division handles the movement of goods and containers containing perishable products to countries all over the world and around Africa.

The cruise liner division, which has been an active part of National Ship Chandlers for more than 20 years, ensures that the unique and individual needs of luxury passenger liners are meet quickly.

“As the largest Ship Supplier in South Africa, National Ship Chandlers’ experience has led to the understanding that every client, and every kind of vessel, has their own specific needs. That is why we have developed specialised

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INDUSTRY FOCUS: LOGISTICS

NATIONAL SHIP CHANDLERS SA

divisions that are designed to cater for these individual requirements under one holistic and cohesive offering. Essentially, we continue to supply ships in all of South Africa’s ports of call with everything from provisions to technical, deck and engine to cabin, and bonded stores.

We tailor solutions to provide you with the best quality and service available within your niche,” the company says.

Efficiency is at the heart of National Ship Chandlers. The four key ports through which the company has a presence are vital cogs in the trade of the continent and, as such, any slowdown or delay at any port would be felt across the entire region. This is why National Ship Chandlers comes with a vast range of products and services, all the relevant paperwork, and vast experience that helps customers pass through SA’s ports, restocking with ease.

“As the Largest Ship Chandler in South Africa, we have the greatest buying power. This means that you can get the best quality products at the most competitive prices. All our provisions, bonded, cabin, deck and engine stores – imported and local – are listed in accordance with ISSA and IMPA codes,” the company states.

An ISO 9001 quality accredited company, National Ship Chandlers boasts a number of the world’s preeminent marine names as its clients – Garrets Marine Catering Management, Lagaay International and Bernhard Schulte Shipmanagement to name just a few.

“At National Ship Chandlers, we consider the hands-on approach that we take to be responsible for the reputable name we have built over the years as the number one ship supplier in South Africa. And through our reputation we have had the great pleasure of providing our service and provisions, bonded, cabin, deck, and engine stores to many of the

maritime industry’s most revered names,” the company says.

As the South African government looks to the ‘ocean economy’ as an avenue of future economic development through its Operation Phakisa programme, the country’s ports will grow in importance and will be part of a major drive for revenue making trade. Early projections for Operation Phakisa have suggested that South Africa’s oceans have the potential to create up to R177 billion to the gross domestic product (GDP) and create over one million new jobs by 2033.

If activity is to increase through South Africa’s ports, one thing is certain – National Ship Chandlers will be there to assist its clients every step of the way. The company is always looking to grow and sates

that its future will be exciting: “Over 70 years of experience and superlative service is just a drop in the ocean of National Ship Chandlers’ Future.”

NATIONAL SHIP CHANDLERS SA +27 31 2054221 webgeneral@natship.net www.natship.net

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SKA

Taking Our Understanding of the

Universe to New Heights

PRODUCTION: Timothy Reeder

When completed, the Square Kilometre Array (SKA) will be the largest radio telescope ever built and capable of producing science that changes our understanding of the universe. It is an international effort to build the world’s largest radio telescope across one million square metres of collecting area, with a wealth of the world’s finest scientists, engineers and policy makers bringing the project to fruition.

INDUSTRY FOCUS: SCIENCE + TECH

//A VITAL PART OF THE EFFORT TOWARDS BUILDING SKA ON THE AFRICAN CONTINENT IS TO DEVELOP THE SKILLS, REGULATIONS AND INSTITUTIONAL CAPACITY NEEDED TO OPTIMISE AFRICAN PARTICIPATION IN THE SKA//

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The SKA telescope will be co-located in Africa and in Australia, and the sheer scale of the project marks a huge leap forward in both the research and development and engineering processes of building and delivering a radio telescope. The end result will deliver a fittingly transformational increase in science capability when operational, with the SKA set to offer an unprecedented scope in observations; it will exceed the image resolution quality of the Hubble Space Telescope by a factor of 50 times, and allow us to image huge areas of sky in parallel.

A vast range of other similar large

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telescopes are due to be built and launched into space over the coming decades, meaning that the SKA will perfectly augment and complement these all while leading the way in scientific discovery. Deploying thousands of radio telescopes, in three unique configurations, it will enable astronomers to monitor the sky in unprecedented detail and survey the entire sky thousands of times faster than any system currently in existence.

Thousands of SKA antenna dishes will be built in South Africa in the Karoo, with outstations in other parts of South Africa as well as in eight African partner countries.

Lorenzo Raynard is Head of Communications and Stakeholder Relations for SKA SA, and talks in greater depth about the sheer magnitude of the technology underpinning the development: “In South Africa, SKA Phase 1 has entailed the building of the mid-frequency antennas, which will incorporate the MeerKAT radio telescope with its 64 antennas. An additional 150 antennas will be added to that. This represents approximately 10% of the entire SKA project, so we will be looking at somewhere in the region of 2500 antennas at the projects’ completion which will extend across the three spiral arms spanning the African partner countries.”

AVLBI In total, nine countries of the continent will form what is known as the African Very-Long-Baseline (VLBI) network.

While the desert regions of South Africa provide the perfect quiet backdrop for the high and medium frequency

SKA

arrays that will form a critical part of the SKA’s ground-breaking continent-wide telescope, it is not alone in hosting components for the SKA in Africa. Eight partner countries around the African continent will also have radio telescopes contributing to the network that will provide scientists with the world’s most advanced radio astronomy array.

These include Botswana, Ghana, Kenya, Madagascar, Mauritius, Mozambique, Namibia and Zambia.

Raynard explains the significance of this network to the SKA project. “AVLBI is essentially a group of antennas that are set up across a very long baseline that forms an interferometry - a long stretch of antennas that observes as a single unit. There are a number of these already in place, namely the European VLBI and the Merlin telescope, which was one of the first to be formed.”

Interferometry is a type of astronomical interferometry used in radio astronomy whereby a signal from an astronomical radio source is collected at multiple radio telescopes on Earth. The African VLBI Network (AVN), meanwhile, will help to develop the skills, regulations and institutional capacity needed in SKA partner countries to optimise African participation in the array, and enable participation in developing SKA pathfinder technology and science.

The AVN will help to develop the skills, regulations and institutional capacity required to optimise African participation in the SKA and in pathfinder technology development and science.

GOVERNMENT PARTNERSHIPS A ministerial meeting in August this year brought together members of all nine of the SKA African partner countries, each represented by its respective Ministers and Deputy Ministers of Science and Technology.

It was the fourth such occasion, with the purpose of considering progress in the development of human capital initiatives and the formulation of new

academic programmes around physics and astronomy, as well as site selection and the rollout of high performance computing capabilities. “It was also at this meeting that all the ministers from the African partner countries agreed to sign a Memorandum of Understanding (MoU),” Raynard adds, “to establish their commitment in preparation of Phase 2 of the building of this VLBI.” As Raynard explains, for those present the benefits of establishing the African VLBI were laid out for all to see. “The agreement in question was to do with the partner countries investing in radio astronomy,” he says.

“If you are building a VLBI it is simply a case of buying up land in each country and then building the telescope. For this level of investment, however, it is important that each country buys in and, as a result, is able to use the instrument for their own human capital

development. In this way, it will be able to build an expertise base not only in telescopy but also in the science of astronomy and cosmology and the related fields.

“Somebody that is trained in astrophysics, for example, is essentially a data scientist and these skills can be applied to many other areas of the economy - such as banking or finance.

“The other primary benefit of establishing a VLBI is that infrastructure is being established across these African partner countries,” he goes on, “which will help to process the enormous volumes of data that are gleaned from these instruments. That data infrastructure can be made available for other natural science disciplines for conducting research, such as bioinformatics and genome research.

The return on the investment in infrastructure is at a multi-lateral level.”

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INDUSTRY FOCUS: SCIENCE + TECH

SKA

The South African Minister of Science and Technology, the Honourable Grace Naledi Mandisa Pandor, is the Chairperson of the Interministerial Committee of the AVN, and added that, “a vital part of the effort towards building SKA on the African continent over the next decade is to develop the skills, regulations and institutional capacity needed in SKA partner countries to optimise African participation in the SKA.” Also recognised at the meeting was the progress made in the development of the AVN project, particularly with Ghana’s announcement that it had been the first of the eight partner countries of the AVN to complete the conversion of a communications antenna into a functioning radio telescope. The combination of what are termed ‘first light’ science observations included Methanol Maser detections, VLBI fringe testing and Pulsar observations.

Reaching these three objectives confirm that the instrument can operate as a single dish radio telescope and also as part of global VLBI network observations, and Professor Kwabena Frimpong-Boateng, the Ghana Minister of Environment, Science, Technology and Innovation (MESTI), added: “The Ghanaian government warmly embraces the prospect of radio astronomy in the country and our radio astronomy development plan forms part of the broader Ghana Science, Technology and Innovation Development Plan.”

The first light readings have been instrumental in highlighting the capabilities of the finished project, as Raynard explains. “Previously, there had been some trepidation from the African partner countries, with concerns as to exactly what the investment would entail, what benefits it would bring to each country and even whether there would actually be an SKA Phase 2. We noticed a real positive turn following the achievements of Ghana, in the senior officials and at the ministerial level, as people could see tangibly what

benefits having a radio telescope in their country would bring, now that the instrument was in place.” Following these initial observations, the research teams from Ghana and South Africa will continue to carry out observations and analyse the data, to improve accuracy in experiments moving forward.

MEERKAT PROVES ITS WORTH A precursor to the Square Kilometre Array is South Africa’s MeerKAT radio telescope, currently being built in the Northern Cape. The MeerKAT telescope will be an array of 64 interlinked receptors, a term which refers to the complete antenna structure, with the main reflector, sub-reflector and all receivers, digitisers and other electronics installed. 48 of the receptors are concentrated in the core area which is approximately 1-km in diameter.

The MeerKAT array has already spotted hundreds of new galaxies, and is on course to be completed next March. Of its 64 dishes, 43 have already been built. Once assembled, the first SKA prototype dish will link to this array and, over the course of the first phase of construction, to 130 more dishes just like it. MeerKAT proved its status as the best radio telescope of its kind in the Southern Hemisphere through its Array Release 1 (AR1), where 16 of the eventual 64 dishes were integrated into a working, fully functional telescope array. In a small patch of sky covering less than 0.01% of the entire celestial sphere, the MeerKAT First Light image identified more than 1300 galaxies in the distant Universe, compared to 70 known in this location prior to its development.

“We have met all of our milestones on this project so far, and the next of these is to have all 64 antennas integrated by the end of March 2018,” Raynard tells us. “The launch will be soon after that, probably around June or July. As we speak today, all 64 antennas have been lifted, and now the hard work is ongoing to ensure that these are all connected and integrated, and make

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INDUSTRY FOCUS: SCIENCE + TECH

each of these individuals perform as one single telescope.

“We have continually met the goals that we have set ourselves throughout the timeline of this project to get us to this point today.

The Array release 1 took place in April 2016, when we had 16 of the antennas integrated, which was followed earlier this year by our managing to get 32 antennas integrated from single polarisation.

This keeps us well on track to meeting the ultimate 64 antenna milestone.” MeerKAT is funded by the South African Government and is a South African designed telescope, with 75% of its value sourced locally. MeerKAT also represents a sizeable international research and development investment for South

36 / www.enterprise-africa.net

Africa, and will be an integral part of SKA Phase 1.

As these targets have been met and checked off, Raynard explains the visible progress that MeerKAT has been able to measure. “Every time we release an array, we point those antennas to a particular section of the sky and we are thus able to see how the resolution and clarity increase with the augmentation of the number of antennas and the baseline distance between those antennas. We have managed to show the public on each occasion how our observation of the same patch of sky keeps improving.”

The MeerKAT telescope made its debut scientific contribution on an international collaboration and major discovery, as part of an international collaboration of telescopes to

detect gravitational waves – ripples in space and time – for the first time, in addition to light from the spectacular collision of two neutron stars. The discovery was made using the US-based Laser Interferometer Gravitational-Wave Observatory (LIGO) alongside the Europe-based Virgo detector, together with some 70 observatories on the ground and in space observing the event at their representative wavelengths.

“This was the very first time that MeerKAT actually contributed as part of an international collaboration of instruments, and therefore contributed to a better understanding of the neutron star collision and the gravitational wave that resulted from that process,” clarifies Raynard.

“Perhaps most exciting is the

SKA

fact that, because MeerKAT will be integrated into SKA Phase 1, up until such time as this is built it will exist as the largest radio telescope of its kind in the world,” Raynard continues.

“This will attract attention from across the world, which is the other benefit of investing in a large science infrastructure of this kind. Being able to attract that level of intelligentsia from across the globe means that our own talent can begin to be nurtured.

This is a huge component of building a knowledge economy.”

PROTOTYPE BUILDING Attention now turns to construction of SKA Phase 1 itself, currently slated to begin in 2018 and integrate both the MeerKAT and Australian Square Kilometre Array Pathfinder

(ASKAP) precursor telescopes. The SKA Organisation is moving towards finalising the detailed design of the SKA1 radio telescope which will culminate in Critical Design Reviews (CDR) for all the telescope products and associated infrastructure and power during the course of 2018.

“Prototype construction has already started,” says Raynard, as the SKA begins to take shape as a real entity. “We have finished the process of building the very first prototype foundation and we are currently testing this. Because it is an innovation project, very few of the parts are bought from the shelf. All our next steps are based on the previous one, which is where the importance of the precursor and pathfinder instruments are

so valuable. These all form parts of understanding and optimising the design and understanding of SKA Phase 1, and, eventually, SKA Phase 2.” The SKA is a mega-science project, and is set to push the limits of engineering and scientific endeavour over the coming decades, as the development of cutting edge technology and innovation, including the design of the world’s fastest supercomputers, facilitates its construction.

SKA +27 (0)21 506 7300 enquiries@ska.ac.za www.ska.ac.za

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KOFFIEFONTEIN DIAMOND MINE

Petra’s Decade At

Koffiefontein PRODUCTION: Timothy Reeder

It is 10 years since Petra Diamonds, the London-listed diamond producing organisation, took over at the Free State’s Koffiefontein mine. According to General Manager, Lino Nkuna, the great success of the past decade has been the way in which the mine has propped up the local economy while still producing valuable mineral assets.

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INDUSTRY FOCUS: MINING

//

The Koffiefontein diamond mine, located 140km west of Bloemfontein, and is one of the largest kimberlite diamond mines in the world by average carat value.

Purchased from De Beers in 2007 for R81.9m, current owners Londonbased Petra Diamonds has announced that a mine expansion plan will see production at Koffiefontein increase from 50,500 ctpa in 2017 to 85,000 ctpa by 2019. According to Petra, research into existing resources suggest that the mine could still have in excess of 20 years remaining. According to General Manager Lino Nkuna, this is

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remarkable for a mine that was first discovered more than 130 years ago and which has been supporting its local population ever since.

“We call it an antique mine” he says, “it’s one of those mines that you feel grateful to be associated with. The fact that after 130 years, it’s still going forward and looking strong, it gives you renewed energy to be part of it. There’s not many mines that you can take back to the 1870s – most of the current mines are at oldest from the 1930s. I don’t want to call it an old lady because she doesn’t look old and she’s still going forward.”

Currently, Koffiefontein uses a Sub-

Level Caving (SLC) mining method where all of the ore is fragmented by blasting and the host rock in the hanging wall of the ore body caves. This advanced mining method is easily mechanised and is usually investigated when open pit mining is no longer economically viable. Petra is keen on SLC and has implemented the strategy across a number of mines, including the Finsch Diamond Mine located some 260km north west of Koffiefontein (featured in the July 17 edition of Enterprise Africa).

But Koffiefontein is an expert in SLC and is regarded as an example to follow.

“We are a pioneer of SLC mining in

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INDUSTRY FOCUS: MINING

SA, we started before the Finsch mine and we moved from the block cave method. Currently, all of our mining is SLC,” says Nkuna.

The hope is that Petra’s mine plan will see production, through SLC methods, ramp up to 1.1 mtpa by 2019 at an average grade of 8.5 cpht.

“The expansion project started the moment Petra bought Koffiefontein,” explains Nkuna. “It’s a small volume mine but we had to go beyond the original depth of 490m and we’ve extended to 620m. We’ve added extra levels which hold seven million tons that we can still mine without expanding further.

The only thing we are building is a new crushing plant which should be finished by the end of the year.”

Currently, SLC mining is taking place across the 560-580 metre levels and the

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process is running smoothly. “It’s exciting I must say.

“The reason this old lady is still here is because our operation is not about just profit – it’s also about the community of Koffiefontein,” reminds Nkuna. “What we like to do is create a life for the people of the community and look after those people. We will do our level best to make the mine as productive as possible for as long as possible. The pipe is still going and we have put in place studies for the future, but right now we are concentrating on delivering the crush and getting the seven million tons out before we look at digging deeper and going beyond the 620m mark.”

PETRA’S 10 YEARS AT KOFFIEFONTEIN Petra has been running Koffiefontein successfully for a decade. After the

company took control in 2007, it quickly set about installing efficiencies and boosting productivity at the mine. Today, the Koffiefontein is known for very high value diamond production, unearthing white stones of exceptional quality and occasionally a fancy pink diamond. To date, the largest discovery came in 1994 when a 232-carat diamond was found.

Asked if there will be a celebration to mark 10 years of Petra involvement, and a successful turnaround from a mine that Petra started with in a care and maintenance programme, Nkuna says a function is being planned for the end of the year. “It’s in the pipeline.

“We went through a tough time in the month of September with industrial action but we are planning for the end of the year. It’s a big milestone to celebrate. We’re looking to acknowledge

KOFFIEFONTEIN DIAMOND MINE

//THE REASON THIS OLD LADY IS STILL HERE IS BECAUSE OUR OPERATION IS NOT ABOUT JUST PROFIT – IT’S ALSO ABOUT THE COMMUNITY OF KOFFIEFONTEIN// the people who have been a part of the project with Petra; remember when we took over the operation it was closed so we started in 2007 and we’re now looking back over ten years and we can’t acknowledge those years without the people who played a part. We hope to include all employees, suppliers, partners and community members in the function we are planning.”

Koffiefontein translates from Afrikaans to ‘coffee fountain’ and is so-named for its position in the country

where traders would take a rest break when travelling from the coast to the gold mines of the north. Riders would grind coffee beans by hand before using a nearby spring for water. The town was established in 1892 following the discovery of diamonds and the start of mining in 1870. Today, the mine is owned by Petra (74%), Kago Diamonds (14%) and Itumeleng Petra Diamonds Employee Trust (12%).

Nkuna highlights the impact of the mine, especially since the Petra

purchase, on the local community as the single most important element of the past decade.

“We currently employ around 300 people directly and give chances to many entrepreneurs. We are part of a social labour plan (SLP) that tries to develop local skills for the industry.

“We are committed to various projects through the social labour plan and we are reviewed each year.

We have just completed building a new soccer field and stadium, we’ve put in a pipe to supply water to the community, and we are in the process of building a crushing plant for brick making. We also donate money to the schools depending on their needs.

We don’t just wake up in the morning and decide to do these things – we engage with the community on what

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INDUSTRY FOCUS: MINING

KOFFIEFONTEIN DIAMOND MINE

they need and do our best to help.

The soccer field helps encourage the youth to participate in physical activity; we are in a desert area so the pipe has helped to alleviate drought in the community of Koffiefontein; and with the crusher plant and brick making facilities coming in, we will be creating employment. These are the things that make me proud and look forward to serving the community further.”

LONG-TERM FUTURE Current economic conditions have the seen the mining industry facing up to a less-than-favourable investment environment. Many miners have had to consolidate, as deposits become deeper and more challenging to extract on shoestring budgets. But at Koffiefontein, the economic impact is not concerning Nkuna and he remains confident about the ability of Petra to see through these tough times.

“For me, there’s not too much impact,” he says. “Yes, it’s concerning because if you produce a mineral that you cannot sell, you quickly decline.

But one thing that is encouraging is our mineral - diamonds don’t dry out or become old. If we can sustain production, even through instability in the economy, there will be a time where we can sell at a higher price. The more precious minerals you have, the better position you are in to negotiate and remember we compete with big companies like De Beers. If the economy is not in our favour, we will simply hold on to the minerals and negotiate a better price in the future.”

As for the feeling surrounding the future of the industry, where many are pessimistic, Nkuna expects positivity going forwards. So many talk of a ‘skills gap’ and a clear distinction between the goals of corporates and those of the front line but Nkuna says that he is witnessing a constant flow of hot prospects looking to mining as a career.

“People still believe in mining,” he says. “Statistically, safety has been improved across all mining houses

and there are many mining students who are very interested in coming into the industry. Every day, we get CVs of graduates who want to get involved in the industry and be trained by the industry, so for me it’s still the core business for many young people in South Africa. With technology coming in further improving safety, we are seeing quality, intelligent people coming into the business. I’m confident that South Africans still believe in mining as a career to follow.”

The General Manager has been at Koffiefontein for 12-months but his career spans more than 22 years in the industry, having previously worked for Goldfields before joining the diamond mining industry in 2012.

With the mine expansion plan, active community involvement, support from government, and research that suggests many more carats to come, the future looks extremely exciting for Koffiefontein and Nkuna is looking forward.

“There’s nothing more encouraging for the people than hearing that the mine life will be extended for another 10 years. The people of Koffiefontein have no other choice apart from working with this mine so their main concern is how long can we continue mining for and we have confirmed that there is potential for going deeper and that brings good vibes.

It is an exciting time and we are always looking forward,” he concludes.

KOFFIEFONTEIN DIAMOND MINE +27 11 702 6900 info@petradiamonds.com www.petradiamonds.com

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METSO

Investing and

Crushing It PRODUCTION: Colin Chinery

Major new investment in a foundry and a strategy that includes expansion into three African states, mark an eventful year for the South African arm of global manufacturer and supplier Metso. “We are a critical cog in the mining industry, and in terms of innovation and quality I would say we are number one in everything we do,� says Managing Director Julian Palliam.

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INDUSTRY FOCUS: HEAVY INDUSTRY

//

With policy uncertainty and dwindling foreign capital investment in lockstep, a €3.5m (R58m) investment in KwaZuluNatal has given a welcome upbeat to South Africa’s troubled mining industry.

Here at its Isithebe foundry, as

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part of its expansion plans, Jetparkbased Metso South Africa is building a second melting furnace to increase manufacturing capacity for large crusher wear parts castings and ensure global availability.

"The demand for large crusher wear parts is growing in the mining

industry,” said Joni Meronen, director of Mining Crusher Wears “With this investment we ensure we can meet our customers' needs, and through the renewal of the foundry improve our capabilities to deliver high quality heavy wear parts.”

A world leading industrial

METSO

company covering six continents, Finish-owned Metso serves the mining, aggregates, recycling, oil, gas, and pulp, paper and process industries, with the Isithebe plant part of a global foundry network that includes foundries in India, the Czech Republic, China and Brazil.

LATEST TECHNOLOGIES Using the latest manufacturing technologies, and in line with Metso's strict sustainability and quality principles as well as international standards, the renewed foundry will manufacture wear parts for the Nordberg MP2500 cone crusher – Metso’s biggest world-wide - as well as for Metso and third-party primary gyratory. The first product deliveries from the new furnace are scheduled for May 2019.

“The expansion is really a strategic one, with the Isithebe foundry having a good reach into the rest of Africa and global markerts .We believe that MP2500 will be more frequently sold into copper mines,” says Managing Director Julian Palliam.

“It’s an engineering masterpiece.”

The Metso African footprint is well established – this year marks the 60th anniversary of its Vereeniging machining, fabrication and assembly plant – and the Isithebe factory, which became part of the Metso Group in 1970, has played a crucial role in South African and African mining.

Against a backdrop of acquisitions, mergers and reorganisations, 2013 saw a special turning point in Metso's history, following the decision to split the company into two listed, independent entities - Metso Corporation and Valmet Corporation.

With Valmet serving industries using bio-based raw materials, Metso focuses on leading-edge solutions and services for the mining, construction, and oil and gas industries.

WORLD BEST “What is really key at Metso is that every project we go into is very critical for us, and the equipment we supply truly stands the test of time.

An example I recently spoke with a lead engineer from New Caledonia who said, ‘you people produce the best crushers in the world.’

“We are producing quality equipment for the mines where we are involved. We are a critical cog in the mining industry, and in terms of innovation and quality I would say we are number one in everything we do.”

Among recent high profile sales is the Metso C200 jaw crusher, delivered to South Africa’s biggest current mining venture, the $400-million Gamsberg zinc and lead project in the Northern Cape, with approximately 160 million tons of defined ore resources, one of the world’s largest

undeveloped zinc sulphide deposits, But with a Gamsberg spectacular an exception in today’s landscape, successful suppliers are addressing what has become a critical if routine sectoral preoccupation.

With mining companies faced with declining ore grades and more complex ore bodies, as well as increasing environmental and safety requirements, the search for capital efficiency and continuous performance improvement has become the biggest challenge in the industry Here Metso helps its customers achieve maximum performance with a full-scope offering of processing solutions and services that increase operating performance and bring sustainable profit improvements.

“Customers behaviour has changed,” says Palliam. “The buying

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INDUSTRY FOCUS: HEAVY INDUSTRY

pattern has shifted significantly to product optimisation and a more service-orientated life cycle type of business.”

MARKET DIFFERENTIATOR “What differentiates Metso from the competition,” says Country Manager & Vice President Sales and Service Southern Africa, Qasim Abrahams, “is that we offer an end to end process solution. We do not position ourselves as a product supplier into the mining sector; we position ourselves as a partner and solutions provider.”

“With capex expenditure quite limited, today’s mining market dynamics are heavily focused on opex optimisation. We have to look at efficiency in output, and this is really where Metso adds value to the end user, partnering with mines in their operations and assisting them in achieving their goals.

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“What we find benefits all stakeholders is the great increase in dialogue and communication. We are far more closely aligned in terms of strategic objectives, which means we can assist them in getting to where they need to be. When you look at Metso as a value-added partner, this is where you see how we differentiate ourselves from the competition.”

Looking beyond South Africa, Abrahams identifies some key markets where Metso is poised to increase its visibility and activity. “One would be the DRC where we are active but not sufficiently so, and the same goes with Zambia and Botswana. We will be strongly focused on increasing our activities for 2018.

“Over the last few years there has been a lot of focus on the South African Market, and while we see a continually increasing need here, it makes sense for us now to start

investment and activity further out in the bordering countries, making sure we see the returns of market share and bookings.

“It is really country and geopolitical and macro environment dependent, and something we will implement depending on these variables.”

CHARTER FEARS Another variable, more volatile and close to home, surrounds the new Mining Charter. Published in June and strongly opposed by the industry, it puts extra levies on companies and increases black-empowerment requirements.

Ratings agency Moody’s characterised the Charter as “credit negative,” while the Chamber of Mines has slammed it as “an unmitigated disaster, both for the mining industry as a whole and South Africa.”

METSO

Department of Mineral Resources Minister Mosebenzi Zwane has agreed not to implement the charter until there’s a judgment in the judicial review sought by Chamber.

The review is scheduled to begin in December.

“When the BBBEE was first launched in South Africa, there was a huge uncertainty about how it would impact on industry,” recalls Abrahams. “There was quite a slow down in foreign direct investment and business activity, and with the potential new mining charter coming out, you can expect the same type of market reaction.

“Corporations have to see how it is going to pan out, and when the dust settles you hope things will have normalised sooner rather than later.”

Julian Palliam and Qasim Abrahams joined Metso at the beginning of this year with a brief to make changes. “For us, it's really about coming in and showing maybe a different way of working and

thinking,” says Palliam.

“It’s not often you get the opportunity to work with a company where the average years of service is in excess of 15. And this is because the people just love the company, the brand, and the products.

NEW ROAD MAP “I think it has been a successful year because we have managed to shift the burden from what was probably not a very healthy state into a much healthier one.”

Abrahams concurs. “Julian and I and the rest of senior leadership team have been focused on stabilising the ship and getting direction in terms of where we need to go. And by the end of this year we should be in a position where we have basically ticked all the boxes “The one thing that stood out for me - and it is very seldom you can find this in any organisation – was that the people in Metso, specifically in South Africa, want change and

were looking for it; looking for solid leadership, which they seem to feel they have, and have embraced with open arms the new road map.

“It is one of the hardest challenges to get an organisation to jump on board a dramatic shift such as the one we are putting it through.

And in this case they are saying, ‘Thank you for doing this.’ ”

METSO +27 11 961 4000 metso.ir@metso.com www.metso.com

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SELECT PPE

Protecting

People

Everyday PRODUCTION: Djamil Benmehidi

When a company rises quickly to become an industry leader so dominant as Select PPE, it is difficult not to sit up and take notice. Since it was first established in 1998 – just 19 years ago, Select PPE has emerged to become Southern Africa’s leading distributor of personal protective equipment (PPE) through its dedication to staying ahead of the curve and excellent service.

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INDUSTRY FOCUS: SAFETY

//

For those who earn a living in rugged, rough-andtumble industries like the mining and heavy industry sectors, for example, or any other hazardous workplace environment, the risk of serious injury or even death is very real and ever-present.

Today, employers are under greater pressure than ever before to not only provide high-quality personal protective equipment to their staff, so as to ensure their safety, but also implement the systems and internal processes needed to distribute equipment, monitor its issue and return, and ensure that the client companies are health and safety compliant.

Since it first opened its doors for business in 1998, Select PPE has been the go-to name in the PPE sector, and has emerged to become the region’s leading distributor of PPE. A commitment to customer service excellence and expert knowledge on all facets of PPE, and all appropriate legislation and health and safety compliance has led the company to achieve great things in a short space of time. Suffice to say Select PPE’s effect on the industry in which it operates has been transformational.

“20 years ago, Derrick Morris – the first owner of Select PPE –

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was managing sport stores on the mines where he realised the gap and the need for PPE,” says Finance Director, Erika Stols. She continues: “There was so much abuse of PPE systems and process and no record, so he started the managing of the PPE Onsite stores on behalf of the customer. A record keeping process whereby if PPE is issued to the end-user or the user, then he’d keep record of it. That’s how, in essence, Select PPE started.

“It started with hard copy paperwork, where we’d keep record on how many items of PPE were issued to any end-user on a specific site, be it a mining site, manufacturing, plant, construction – it doesn’t matter which industry.

Overtime has evolved further to the extent that we have developed an in-house database and distribution system, created by our longstanding onsite developer. It’s a fantastic system.”

“We have a code of practice or now known as an Issuing protocol, where it’s determined for instance if you are an underground worker – they need gloves, hard hat, ear protectors, mask, boots, and it is all registered on our system when PPE is issued. So, when an employee swipes their employee card, our oneof-a-kind system (fully copyrighted

to Select PPE) either allows you to take the PPE kit you are entitled to the issuing protocol or no, sorry – you have already taken your equipment last week and are outside your IP. An requisition is issued that needs to be authorised by visiting the Head of Department. Select PPE is currently launching our ppe.365. net system, all of which will happen online – we have plans in place to manage the approval process where an end user is outside his IP by using apps. You won’t see people running around with slips anymore!”

This innovative and fully automated stock control IT system has proved to be a resounding success, and has generated cost savings for Select PPE’s customers, including long standing relationships with large blue-chip clients, including various large companies within Africa OGP, manufacturing, agricultural and mining sectors. Not that Select’s ambitions are restricted to the local areas.

The 2016 launch of the company’s new logo was symbolic for the company, in that its inclusion of a silhouette of the African continent is indicative of its ambitious drive to further penetrate new countries and markets. Starting with Zambia and Botswana, this

SELECT PPE

Africa growth strategy will then see the company grow up through Africa in-line with Select PPE’s BP2020 strategy - an ambitious and expansive idea that will see the company diversify its business model and become a distributor of its own range of personal protection equipment.

Stols elaborates on this further, saying: “We’ve opened a number of retail outlets – we’ve got seven now, which are all doing really well. We aim to have 20 open by next year, and we are on course to achieve this.

“We’ve also started our consignment store business this year, where we will be present into a client’s premises/shop and put up a branded shelf in that shop.

Through this, our clients can sell stock on our branded shelfs and walk-in customers can purchase

PPE equipment as they need it.

The launch name for these ‘shops in shops’ is Safe@work - entirely branded and trademarked by Select PPE. We will invoice these consignment customers each month for the cost of goods and stock that has been sold to their customers.

“In 2017 Select PPE launched our range of inhouse protective equipment brands called Pride, Force, and Storm.” While Select PPE’s new retail outlets and expanded operations are impressive, it is this decision to become a manufacturer of its own range of personal protection equipment which will truly help take the company to the next level.

With the support of a manufacturing partner, who was selected carefully after a two-year selection and planning

phase, Select PPE aims to drive its protective equipment product ranges to the top of the industry, to become a market leading supplier of products as well as a distributor.

Thus far, all feedback from potential clients suggests that is new product ranges will be very well received: “We’ve created three different ranges to meet the budgets and needs of all potential clients. The Storm product range is for your high-end, discerning customers that need specialist items; the best equipment, like your blue-chip steel manufacturers, people that use a lot of chemicals, and so on. That’s the Storm range, a premium selection of products aimed at a smaller consumer segment at the top of the market. However, this range will naturally be limited in size,” Stols explains.

QualitySafety T. +27 16 365 5770 F. +27 16 365 5740 E. qualsafe@mweb.co.za W. www.qualitysafety.co.za

Quality Safety cc (QS) was founded in 1978 by Mr. Brian Bland to bring innovative and cost effective safety products to the South Africa and international market. Now consolidated team of more than 400 people are the work force in the company. In 1990 the Quality Safety was established as 1990(Pty) Ltd. The vision of the Quality Safety is to acquire excellence in the field of quality, in both product and services.

The strategy of Quality Safety is to create and provide quality products

in the safety, security and medical equipment related arena. The range of products varies from simple utilitarian and well-designed products, to specific high-tech product ranges manufactured according to stringent and tested standards, which include: • Accreditation with the South African Bureau of Standards (SABS) • Compliance with ISO 9001 standards • Quality Safety rank among the largest local manufacturing companies surpassing multinational companies in the industry.

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INDUSTRY FOCUS: SAFETY

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SELECT PPE

She continues: “Our Pride range on the other hand is our intermediate range, and it has been very well received by the market.

Pride will be a more value conscious product that is synonymous with strength, value, and comfort, and aimed at the far larger mid-market consumer segment.

“The Force range is an entry level option that caters to lower budgets without compromising on safety. Its more for the agricultural sector, such as your small farm owners, for example, that needs equipment and overalls for their workers but who can’t afford the most expensive kit. We’ve just started to receive our first stock order for the Force range.”

Understandably, there is great optimism about the company’s forthcoming entry into this new area of business. Certainly, there is a feeling among the senior management team that this expansion has capped what has been a very successful few years for the business.

It is no secret that the South African economy has endured a difficult period of stagnation and poor business confidence, because of many political and economic difficulties, not least the dire commodities crash that all but collapsed the global mining sector. It is therefore telling that even despite the challenging conditions that existed around the company, Select PPE hasn’t merely survived but thrived, having posted double-digit growth rates, year-on-year.

In the words of Stols, “Select PPE has always been a survivor.”

The company’s 420 highly trained professional staff from every department, be it warehousing, logistics, or procurement, as well as its senior management team, are actively engaged in the company’s success.

Stols reiterates “Select PPE are headed by a transformational CEO –

Peet Pieterse, whom came through the ranks from an entry level manager to leading the whole Select PPE Africa team. His vision and ‘no nonsense attitude’ is well known and are supported by his Senior Team. His ‘we will not compromises’ are: Complete solution offering, selling a service of managing the safety of our customers employees; build a formidable reputation and long-standing customer networks;attribute our success to the high-quality of service, reaction time to the markets, endurance in poor economic cycles and the ability to deliver tailored PPE management systems to our customers; continuously evaluate the market trends and product innovation;service offerings designed to communicate our focus on our customers and employees; be flexible, fast and innovative with regards to changes required to meet our clients’ needs and accomplish goals, cost savings, legislative requirements and KPI’s; and embrace change, honour our communities wherein we work, strongly believe in education and skills transfer initiatives.”

These are heady times for a company which has seemingly perfected the business of protecting workers into a fine art form.

Economic crashes, mining strikes, and political discord have failed to halt Select PPE’s ascent – one can only wonder what the company will achieve in thriving conditions?

SELECT PPE 011 296 3600 marketing@selectppe.co.za www.selectppe.co.za

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AFRICAN FINANCIAL GROUP

Advancing Black Wealth Accumulation

Through Healthy Investments PRODUCTION: Manelesi Dumasi

The goal of African Financial Group is ‘to become a globally competitive and diversified Pan African investment company’. Chairman Dr Gil Mahlati explains that investments into healthcare provision in an underserviced sector of the market will help advance the company one step closer to this vision.

//

Dr Gil Mahlati founded African Financial Group (AFG) in 2001 with the goal of advancing economic transformation in South Africa through the provision of effective investment management and innovative financial solutions.

Mahlati, a Fellow of College of Surgeons of SA from the University of Cape Town (1994) and a Clinical Fellow in liver surgery from King’s College Hospital in London, is one of the country’s most trusted figures in the healthcare industry. He started AFG with his wife, Dr Vuyo Mahlati, who is an expert in the financial services industry and part of the team behind SA’s National Development Plan. Together, the pair have launched AFG from the ground to become a trusted name in the

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Pan-African investment industry.

In an exclusive interview with Enterprise Africa magazine, Dr Gil Mahlati explains how he is using his experience in the global healthcare industry to advance the business and drive economic transformation in a sustainable manner.

“We are trying to use money generated by black people to transform the economy of South Africa instead of using established money,” he says.

“We are an emerging company and we have good ideas. Most of the time if you talk about transformation of the economy in South Africa from an ownership perspective - from minority to majority ownership - what used to happen is that institutions and established companies would

drive that transformation and Africans were recipients of such transformations, but now Africans are in a position to drive transformation themselves, and they have the capital to do so whilst attracting global capital as well. Companies who didn’t have black shareholders but who wanted to do business with the government needed black shareholders so they were pushing transformation. Now we see that black-owned companies are gaining these contracts without the need for lengthy BEE reviews. It’s certainly not straightforward but we are now seeing more money coming from black sources.”

With the advent of BEE in 2003, AFG started out as a partner for deal structuring and financing in the

INDUSTRY FOCUS: FINANCIAL SERVICES

AFRICAN FINANCIAL GROUP

m a i l@sa k h i wo. com

Sakhiwo Health Solutions is a multi-disciplinary health infrastructure consultancy company.

We specialise in strategic health planning, health briefs, facility planning, architectural design, project and construction management, health technology, consultancy and advisory services related to hospital infrastructure development, commissioning and health facility maintenance management.

Sakhiwo acts as an implementing and multi-disciplinary development agency for hospitals and health facilities and pulled together some of the best expertise in South Africa for the establishment of Sakhiwo Health Solutions.

CURRENT PROJECTS

health sector.

“Initially, when we started the company as an investment holding company, we were taking equity positions in transformational BEE transactions. It was myself and my wife, focussing mainly on healthcare across various sectors of the economy. We did deals with Top 40 companies such as Aspen Pharmacare, Old Mutual, Tongaat and similar and we held some shares,” Mahlati reminisces. “After 10-15 years, those deals matured and we took the money to start a financial services entity. We can now offer asset management and stock broking among other financial services.

We are investing in healthcare, in hospitals and primary healthcare clinics across Africa, and we’re also active in housing in South Africa.”

By designing investment vehicles that pool savings in black communities and investing the capital in fast-growing companies that also embrace transformation, AFG offers positive ROI for its clients. Mahlati sees great potential for the delivery of private healthcare services in a specific demographic – the so-called missing middle. Capital generated from mobilising savings within previously excluded groups is used

by AFG to bring first class service offerings to South Africans who are in need and willing to invest in economic initiatives.

“There’s a whole section of our economy, known as the ‘missing middle’, including police, teachers and others in the lower-middle class, that don’t have access to proper private healthcare and proper private housing funding so we are concentrating on that area in South Africa which is around 15 million people. With the middle class growing across the continent, we can see that more and more attention is needed in this sector. This is why we have the stock brokerage and asset manager who are gathering assets to invest

South Africa • Cecilia Makiwane Hospital • Lilitha College of Nursing • Frere Hospital, new Oncology and ICU • Sipetu District Hospital • Thabazimbi District Hospital • Letaba Regional Hospital • Limpopo Academic Hospital • Siloam Hospital • Eastern Cape Health Facilities Maintenance Zimbabwe • The Avenues Woman and Child Hospital

Mozambique • Nampula General Hospital The Gambia • Horizons Private Clinic (TA for AfDB) Namibia • Otjiwarongo Referral Hospital • Ondangwa District Hospital • Khomas District Hospital • Katutura Hospital • Windhoek Central Hospital Botswana • Health Facilities Maintenance

w w w.s a kh i w o .c o m

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in the development of people – healthcare, housing and education.”

GLOBAL PARTNERSHIPS One of the most recent, and most exciting, investments made by AFG involves a partnership with Austrian healthcare provider VAMED. Mahlati, in his pursuit of offering quality private healthcare to the ‘missing middle’, hopes to use this relationship to help develop the foundations for significant healthcare investments here in Africa.

“Now that we have that relationship, I can go to local funding agencies in South Africa, including our own pension fund, and explain that we can now deliver healthcare on a private sector basis to all members of a government pension fund. It gives

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us credibility and gravitas behind our claims,” says Mahlati.

“Since the beginning, I had been looking for a partner in the hospital development and management space because there is the section of the population that doesn’t have access to quality private healthcare – it has to depend on government healthcare but they can afford private healthcare.

The established companies concentrate on the highest end of the market. South Africa’s four big healthcare organisations are based internationally, in places like London or India, so I needed a big global partner that could make a difference on the continent so I approached VAMED,” he adds.

The country’s health industry

has been dashed in recent years by a number of negative stories which have caused lacking confidence in the system. Through 2016/17, estimates suggest that R378bn has been spent on healthcare (approximately 8.3% of national GDP), but R182.71bn was expected to be spent in public sector health facilities which serve more than 80% of the population while an estimated R189.08bn was allegedly spent in the private sector demonstrating the disparity across the industry. The under-resourced and over-extended public facilities have displayed strain and we have seen the recent collapse of public oncology services in Durban and the tragic consequences of Gauteng’s mental health crisis. This has prompted the government to

AFRICAN FINANCIAL GROUP

fast-track its revised plan for National Health Insurance (NHI).

NHI contributions could provide big opportunities for AFG to advance its plans, and with the company’s effective investment management capabilities, now looks like an exciting period. “The government is now talking about NHI and with the emphasis on localisation, we would need to partner with local people, particularly doctors, who could then own a piece of the hospital group,” explains Mahlati. “We have around 110 private hospital licenses that we are looking at in SA and that’s going to need a lot of cash but with the NHI starting in the next few years, we should be able to deliver those costeffective hospitals for that section of the population.”

Before NHI can be fully implemented in South Africa, a

number of legislative and regulatory reforms are needed and this means that the launch of the initiative remains some way off yet.

AFRICAN INVESTMENTS Included in the AFG offering is financial planning and wealth management, risk/life insurance brokerage, estate planning, succession planning and other related financial services and while the company’s core market remains South Africa, Mahlati is always looking to increase reach on the continent. Experience in emerging economic environments, public private partnerships in infrastructure projects, and participation in empowerment transactions elevates the company above potential competition. But key in AFG’s approach is trust and relationship

The best way to predict the future is to create it.

building. “In Africa that is the most important thing,” says Mahlati.

“Your balance sheet and financial capability is important but amongst Africans, trust and relationships are paramount – you only get to do things because people trust that you can do it, not necessarily because your balance sheet is better than another. You earn that trust over years and it involves your focus – what is your business about? Are you transformative or just interested in the bottom line? It’s called the ‘triple bottom line’, and that means your business is concerned with social impact, environment and sustainability in terms of profit.”

In a bid to catalyse infrastructure development projects which will contribute to economic development, AFG has entered into

Consilium Capital Consilium Securities

Consilium

Corporate & Employer Share Scheme Manager

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Stock Broking: Fully regulated and licensed stockbroking service offering an extensive array of securities that include margined and non-margined products. Our stockbroking team deliver discretionary and nondiscretionary services.

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Through the pro-active and appropriate management of this scheme we can assist in attracting, retaining and motivating employees, as well as aligning their interests to that of the company

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INDUSTRY FOCUS: FINANCIAL SERVICES

a relationship with an international equity fund ready to work in Africa.

“We have partnered with a global pension fund aggregator who is interested in funding infrastructure across the continent.

What is good is that they come with all the equity for the project and access to equity is a problem in our environment,” says Mahlati. “We are trying to de-risk projects,” he adds.

“For example, in Botswana we are a working with the national power company and they want to start with renewable energy. If the government can give us a guarantee for the next 20-years then we will fund the whole project. We are doing the same thing in Namibia with infrastructure,

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bringing the global pension fund aggregator who is willing to work with local pension funds in each country. It allows us to come up with specific infrastructure solutions for that particular country – we are doing the same thing all over the SADC region.”

PEOPLE BUSINESS AFG is a business that develops deep trust with clients. Without this trust, no investment business can truly thrive. Mahlati recognises this thanks to his years as a surgeon, where ‘clients’ literally put their lives in his hands. He insists that investing in people is a vital part of business, especially in Africa, where

relationships are so important.

“From the beginning, we have focussed on the triple bottom line – that’s society, environment and sustainable profit,” he says. “I believe you have to take this approach and not simply focus on making tremendous profits and that is how you can be sustainable over time.”

When asked why he decided to make the switch from healthcare to financial services he looks back to the country’s changing circumstances in 1994. “We became free” he says.

“People were allowed to do anything they wanted. Things I couldn’t do before I could then do. What really drove me was the understanding that society is driven by many elements

AFRICAN FINANCIAL GROUP

but the biggest are politics and business so I chose business.”

Ensuring that the right people lead the business forward in the future, Mahlati has already started planning for his retirement. He is keen to keep the family feel to the business, something which reinforces the ideas of trust that the business is built around, and as such is encouraging his children to get involved but being clear that it was never expected of them.

“My daughter has already joined the business. She has her MBA from University in Shanghai, she speaks Mandarin Chinese and I’m starting to look at the next generation and what it will do,” says Mahlati. “My son

is working towards a Masters in Big Data in the US and is working with Deloitte so when/if he is ready he will be welcomed into the business. I want to focus more on healthcare and allow my daughter to look at financial services alongside my wife.”

Before his retirement, Mahlati has set a target of increasing turnover to $1 billion in the next three years.

Right now, that target remains some way off, but he is confident if all factors fall into place at the right time.

“We are in a position to get a lot of assets from pension fund,” he says. “We are going to the States to access global pensions funds and private equity funds but we might not reach the one billion. If we can

get underway with the hospitals, we could get there. We are also hoping to finalise a relationship with Vodacom for the delivery of costeffective healthcare solutions using technology; if that is completed, we will definitely be on our way.

“Times are tough, but they remain exciting,” he concludes.

AFRICAN FINANCIAL GROUP +27 11 325 5186 admin@africanfinancialgroup.com www.africanfinancialgroup.com

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AVBOB

A Funeral Insurance Provider Like

No Other PRODUCTION: Timothy Reeder

AVBOB is the largest mutual assurance society in Africa, providing a complete, one-stop funeral insurance and funeral service solution.

It offers the entire spectrum of funeral services via an extensive national infrastructure consisting of more than 320 offices and a manufacturing plant, employing nearly 7300 people.

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INDUSTRY FOCUS: FINANCIAL SERVICES

FRIK RADEMAN

AVBOB

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The AVBOB Group, consisting of AVBOB Insurance, AVBOB Funeral Service and AVBOB Industries is South Africa’s only mutual society that provides a one-stop funeral insurance and burial service solution.

The Group is deeply rooted in South Africa with a history dating as far back as 1918. At this time it existed as a society in the form of a benevolent fund, or burial society, that happened to have the additional capacity to conduct funerals.

Almost a century later, AVBOB continues to make affordable insurance available so that all people, whether rich or poor, are given access to a dignified and personal send off when such a time arrives.

We asked CEO Frik Rademan to provide some background to the society’s formation, as it nears next year’s celebrations of a century of being woven into South African history. “We started in 1918,” he starts, “primarily because, at that time, many soldiers were returning from World War 1 and brought the Spanish Flu back with them, which meant that a lot of people died.” Rademan refers here to one of the worst viral epidemics of modern time, which by October 1918 had killed anywhere between 50 and 100 million worldwide, and more than half a million in South Africa alone.

In response to the rising funeral numbers, and the resultant rising prices, the Afrikaanse Verbond was established, later to become Afrikaanse Verbond Begrafnis Onderneming Beperk, or the more workable AVBOB. “AVBOB was established when a couple of the poorer citizens came together and, working for nothing, strove to supply or make money available for a decent funeral,” Rademan tells us. “From then the group grew to where we are now, with 320 branches throughout South Africa as well as 23 in Namibia. We have 1.8 million policyholders which equates to 5.4 million lives insured, and offer the entire spectrum of funeral-related products and services.”

AVBOB continues to build its family today, and fulfil the objective which was core to its establishment in 1918 of ensuring a dignified and respectful burial for each if its members. Next year will see it celebrate

a century of playing an integral part in the lives of South Africans, although as Rademan explains, even such a momentous occasion will play second fiddle to the needs of its policyholders. “We will have a centenary function in Pretoria on the 15th August next year, which will cater for almost 400 people, and we will also budget for allocated funds for all the regions throughout South Africa where we have people, in order that we can hold functions for each of these different provinces.”

“Our intention is not to go overboard with parties and the like, however - we’d rather give the money to our policyholders and our employees. We are a mutual insurance company, and this is what differentiates us. As such we are owned by our policyholders and most important for us is to work for them. Over the past ten years we have declared R 8 billion of surplus profits to enhance their policy values, and we plan next year to declare a fifth exceptional bonus, which currently we expect to be worth R 2.5 billion in total. This will be the single biggest declaration to our policyholders to date.”

“We have 7 300 loyal staff around the country and we want to ensure that we are rewarding them with a cash bonus, while we also wish to look after the pensioners and those people who have helped us throughout the last 100 years.”

This outwardly benevolent approach is one which has also been applied to AVBOB’s sense of corporate responsibility.

“Currently we are running a flagship project which sees us donating container libraries to underprivileged schools all around South Africa,” Rademan tells of its social investment program. Minister of Basic Education, Angie Motshekga, labelled AVBOB the single largest contributor of fully functional container libraries given to primary schools in South Africa, each of which is worth approximately R500 000 and comes with 2 500 books, to benefit thousands of learners.

“The success of our involvement saw our original figure of 10 libraries increase to 50, of which we have so far provided 45,” Rademan explains.

The delivery of the 50th and final library of this scheme next August will see the

project reach its end. In its place, the Avbob School Infrastructure Project was launched in July this year at the Joe Solomon Primary School in Heidedal with a value of R 280 million, and aims to provide the learners of nine beneficiaries in total with adequate classrooms in order to accommodate their large number of learners. The investment goes hand in hand with the National Development Plan that aims to eliminate poverty and reduce inequality by 2030.

“We will rebuild and renovate nine schools in the nine provinces of South Africa in which we do business,” Rademan says. “It is an historic moment for AVBOB to be launching this project in Bloemfontein, because the society was established here in Mangaung on 15 August 1918.” Assistant general manager, Kebo Mosweusweu, added: “We at AVBOB strongly believe in uplifting the community and making sure that we equip it with the necessary facilities to succeed.”

When pressed, Rademan identifies some key factors which have led to AVBOB’s dominance of the funeral insurance field.

“We believe that we make it difficult for other players to compete with us; people come to us based on the value proposition,” he offers. “We believe that it is of critical importance that we stay on top of our niche market, and we must therefore be innovative in our products within the funeral market. We are able to offer a number of privileges based on the fact that we are mutual - free funerals, cash bonuses, a year’s premiums back after five years of payments, for example. There is huge competition around every corner, and so in a niche market it is imperative to be the market leader, which is where our mutual status yet again keeps us ahead of the rest.”

The combination of these individual aspects has helped AVBOB to continue to excel in the midst of a harsh recent economic climate. “The economy has turned a little against us,” Rademan says, “and we have felt this particularly keenly in our business as we are at the lower end of the market - we work with the people who are losing their jobs, where mines and businesses are closing down.” Its annual report, however, underlined its resistance

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to the downturn, highlighting a premium increase of 16.0% to R 3.1 billion and a net growth in new business by 14.8%, not to mention the special bonuses both paid and yet to come. “In this our 99th year, the AVBOB Group produced a strong set of results in a challenging economic environment,” Rademan announced at the Annual General Meeting which was held on 16 November 2017.

“The Society performed exceptionally well. Over the six-year strategic planning period which ended 30 June 2017, the Society grew its net new business by a remarkable 156%. The resilience of the product offering, our one-stop service and the expansion of our insurance and funeral footprint supported this growth. This success allowed the Group to expand its workforce by 96% over this six-year period.”

“Putting the needs of our policyholders first is a value that has been passed from generation to generation and is what gives us an advantage. We therefore base our capital management and strategic decisions in terms of our mutual status.”

AVBOB has been a mainstay of recent South African history, and Frik Rademan part of the fabric of the company. As his time as CEO nears its end, we asked him to provide some insight into the legacy he will leave since taking up the post. “I have worked my way up through the Group over the course of the last 35 years,” he tells us. “I was appointed as CEO six years ago, at a time when things were not going terribly well for AVBOB. We had negative growth in more or less all sectors, but a focus on our strategies and our plan meant that we were able to turn things around, and at board level it is vital that we continue to apply these strategies and our differentiators.”

“We have also appointed two journalists to write a book about AVBOB and its history, which will be published next year.

They have interviewed in the region of 110 people across the Group, a wide-ranging sample which includes pensioners, senior staff, funeral undertakers, and many more.

What will be made clear in the book too is that since my taking over, the face of AVBOB has completely changed, but I have always tried to make these changes without

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frightening people or making it seem a daunting process. Without explicitly telling people, I started to implement new ideas and directives within the company, and in this way I got their support. I think the success of this is evident in our tremendous growth; over the last six years we have increased our business by 156% and our premiums by 142%” “I am very proud of what we have achieved, and of having become a top employer which would have seemed impossible six years ago. I cannot do anything without the right people, however, and it has been invaluable to have them behind me and have their support, which allowed us to make this transformation so successfully and position us where we are now.” Indeed, the research of the Top Employers Institute revealed that AVBOB provides exceptional employee conditions, nurtures and develops talent throughout all levels of the organisation and has demonstrated its leadership status in the HR environment, always striving to optimise its employment practices and to develop its employees.

AVBOB’s 2017 annual report also refers to the mutual assurance society as the ‘pacesetter’ for the industry - the frontrunner with whom the rest must fight ever harder just to keep them in sight.

With his customary humility, Frik Rademan justifies AVBOB’s current assessment of its position; after all, the nature of business dictates that one player must emerge ahead of the competition, and it would be near impossible to argue against AVBOB’s residing at the top of the funeral insurance game at this juncture. “Without wishing to sound arrogant, I believe we are the market leader,” he begins, “but there is still room for us to do things better and more effectively.

I do think that most people regard us as the leader in this industry, which ultimately is integral to our strategy.”

Rademan is able to point to additional recent proof to further strengthen such a claim, revealing AVBOB’s success in the largest and most widely-referenced service excellence benchmark in South Africa.

“In the AskAfriKa Orange Index Service Excellence Awards we achieved the number

one spot among the long-term insurers. To scoop this, we are competing against all of the big insurers in South Africa and we are sitting within our niche market with our two or three main products. To be recognised to this extent underlines that we are doing exceptionally well.” Launched in 200l, the Orange Index’s longevity is testament to its ability to provide a reliable yardstick for service measurement in South Africa.

With this in mind, we asked Rademan to turn his attention to AVBOB’s goals for the coming months and years. Would AVBOB be continuing to increase its footprint into the rest of Africa, for example? “While we already have 23 branches in Namibia and it is certainly a big country, there are only two million people living there, which makes it a difficult place to do business,” Rademan lays out. “We are expanding toward the north though, as that is where most of the population is found.”

“Our focus is more on obtaining growth in South Africa, and since last year we have been working towards this. Within the next two years we want to open another 100 branches, mostly in the rural areas, to get closer to our policyholders and provide them with an even better service.”

“One of the key differentiators that sets us apart is that we are the only funeral insurance provider that can supply the funeral service itself, and we also have our own factory to supply the funeral products to the market,” Rademan begins to wrap up. “We believe that we can offer a onestop service, and this, together with our mutual status, gives us the edge over our competitors. We believe that if we can grow organically, open branches and get our products to the people, there is still much room for growth and expansion. We will then consider if it is the right time for us to make our move into the rest of Africa.”

AVBOB +27 12 303 1000 info@avbob.co.za www.avbob.co.za

RESOLUTION INSURANCE

Resolution Targets

Emerging Consumer

PRODUCTION: David Napier

Nairobi-based Resolution Insurance is looking past the current economic woes in Kenya towards a bright future. It is developing new product lines and investing in new technologies to continue ‘protecting what you value’, with customer service of the highest level.

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The Kenyan economy has been hit by an air of negativity in recent months. Political uncertainty has caused havoc across the country and as people wait for political issues to be resolved, investors are taking money elsewhere. The Secretary of the Treasury said recently that growth projections were set to be revised downwards and all were hoping that there is no repeat of 2008 where, after a disputed election and

in a poor global economic climate, growth fell to just 1.7% compared to 7.1% the previous year. The Kenya National Bureau of Statistics (KNBS) said recently that the economy expanded by 5% year-on-year in 2017’s second quarter compared with 6.3% in the same period in 2016.

But even during these challenging times, businesses that are set up in the correct way and are experienced in dealing with different

market conditions can not only survive but thrive.

In the insurance industry, Kenya’s Resolution Insurance is growing its portfolio and attracting more customers each year.

“These periods of time are when people need insurance so people are still buying,” says Managing Director, Alice Mwai.

A subsidiary of the Resolution Group, a leader in East Africa’s

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RESOLUTION INSURANCE

insurance sector, Resolution Insurance provides an individual and commercial product portfolio with its roots in medical and health.

Mwai says that economic turmoil has had some impact on the company’s progress but not enough to cause serious concern in the board room.

“There is certainly some slowdown” she says, “we’ve seen the stock exchange lose value over time. Last year, a law was passed to cap interest rates and so we’ve seen a credit squeeze around banks’ lending to small businesses and individuals and that has impacted on our customers’ ability to buy. We’ve seen some clients reducing the benefits they want to buy and delays in payment of premiums but it’s not been significant.”

In fact, Resolution Insurance is growing its reach, introducing new products, reaching out to new segments in the market, and, at group level, expanding into new geographic territories. Already active in Tanzania and with previous experience in South Sudan and Uganda, Mwai and Resolution see big opportunities in the East African region.

GROWING BUSINESS “I am growing my business within the boundaries of Kenya but I think we are certainly looking at going into new markets, but new markets that are stable. We know where we sit in the East African markets and we know where is stable and where is not, so we will look at the trajectory of the markets around us and see where would be good for investment.”

Currently, Kenya’s insurance penetration rate sits at around 3%, far from the figures achieved in more mature markets identifying opportunities for local growth. 15% of the world’s population lives in Africa, yet the continent remains largely underinsured and the industry remains under-developed outside of a few major African powerhouse economies, signalling opportunities for quality businesses to expand.

Resolution has recognised these chances and is busy creating new products to fit gaps in the market.

“We’ve got new products lines that have been released in the past two years surrounding car and motor insurance,” explains Mwai. “We’ve always done workmen’s compensation insurance and that dovetails very nicely with the medical side of the business, especially when you’re selling to corporate entities and big employers.

The government of Kenya recently passed an insurance law demanding that all ports must buy marine insurance locally so that is one of the products we have developed. We have invested so that customers can do this digitally – we have an online platform through which purchases can be made.

“The other products that we have worked through are typical small business insurance, covering assets in the office, fidelity for employees, and anything that a small business would require and for us that is key because we largely play in the SME and individual family space.

“Another area that we want to go into, and an area that we are busy with pilots and research just now, is with the emerging consumer. This is someone we define as having not purchased insurance before but someone with buying power who perhaps hasn’t seen products packaged correctly or been attracted by suitable payment plans or doesn’t understand the language of insurance. We believe this is the next frontier for insurance in Kenya and across Africa.”

It has been reported that insurance premiums in Kenya are not affordable for the majority of the population, regulation and legislation have been described by industry commentators as ‘weak’, and, crucially, many regard the industry as incomprehensible, not being able to make sense of the language involved.

Mwai says that Resolution is always innovating new products and coming up with ways to simplify communication

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INDUSTRY FOCUS: INSURANCE

in an attempt to break into the ‘emerging consumer’ market.

“There is still an element of ‘grudge purchase’ surrounding insurance in Kenya,” she admits “We must not forget that insurance in Kenya is purchased by someone who has the resources to own a car, a house, and other big purchases - it is not always a priority for people. There can also be a lack of trust as when people need to make a claim, they can be handed a 30-page, highly detailed document to read and then find out their claim cannot be paid. We must simplify our language, try during product development to reduce exclusions in a policy, and try to minimise complications for customers.”

TECH INVESTMENTS An important focus for resolution over the coming months will be investment into technology in order to streamline and smooth out communication issues. All of this will aid companies in their interaction with consumers and industry partners and ultimately improve productivity.

“Insurance companies in Kenya have lacked behind in back office systems related to underwriting, claims management and payments so the industry is now investing into this,” explains Mwai. “There’s also a lot of investment into communication and accessibility for the customer to help them buy and report easier. There’s also investments looking into customer experience and CRM. Over time, there will be investments into data and claims data interchange. Currently, we receive medical insurance claims and medical reports in paper form so we are looking at interconnectivity with hospitals to receive information digitally. This will improve efficiencies and turnaround times.”

Research suggests that in 2016, around 10 million medical claims were received by private insurance companies in Kenya. However, these claims were accompanied by mountains of paperwork - often several

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invoices, medical documentation, doctor’s notes, etc. all of this paperwork must be manually input and checked by the insurance company and this can cause slowdowns and errors.

Automation and the development of digital systems could vastly and quickly improve this situation.

In August, Resolution Insurance announced a MoU with a group of speciality hospitals in India to offer Resolution members direct access to an array of advanced care including cancer, organ transplants, cardiac and orthopedic treatment services. This follows the announcement from the Ministry of Health which suggests that a growing number of Kenyan’s are travelling abroad to seek out highquality but affordable healthcare.

Moves like this are exactly what has given Resolution the reputation of being innovative and creating industry benchmarks.

HISTORIC SUCCESS Resolution Insurance owes much of its current success to a long and inventive history. Founded in 2002, the business was originally named Resolution Health focusing only on medical insurance.

“The company was formed by our founder and director Peter Nduati with the support of other local shareholders,” explains Mwai. “Originally, we were largely targeted towards SMEs and families and that is how we grew through the years. We acquired a good name in the market thanks to the service we provided and the alternative products that we offered.”

The company was the first to offer individuals HIV/AIDS, dental/optical and maternity covers. Thanks to a strict focus on customer service, Resolution’s reputation grew quickly and so a growth in the company’s employee base was required.

“We grew our number significantly and we got to a point where we were the equivalent size to other insurance companies in Kenya and so the regulator was of the opinion that we

should be regulated as an insurance company. At that time, we had acquired a private equity fund as an investor who owned 25% of the business and we agreed to go into licensing as an insurance company in 2013. Getting into insurance licensing meant being regulated like any other insurer who was not just undertaking health insurance but was active with all types of shortterm insurance.

“After getting our licence in 2013, we needed to diversify because health insurance is a high-loss ratio business compared to other types of insurance business and the regulator will look at you and say ‘you have a concentration risk with your portfolio mix’ so we had to diversify quickly. Regulation here is changing from a compliance-based framework to a risk-based framework and this means that some products require more capital and health is one of those. From a return-on-investment and capital employed perspective one needs to diversify to have products that are not so capital intensive coming into the book.”

Today, health and medical remains the core business for Resolution but its portfolio includes travel plans, liability plans, property covers, motor covers and all other classes of general insurance.

Mwai, who has been with Resolution for 13 years and who has worked her way through the company’s ranks, says that good customer service is what will help drive future business.

“We have clients that remain with us and we want to continue servicing them. We’ve done a good job of it and we wouldn’t want to lose that competence. For us, the biggest drive is make sure we keep our customer experience up and keep our losses as contained as possible so that we can make returns on our investments.”

Only taking the position at the top of Resolution Insurance in Kenya last year, Mwai admits that the role has its challenges but remains gratifying. “I’ve had to do a lot of training to develop

RESOLUTION INSURANCE

my skills in different areas – things like communication, public speaking, I’ve started doing by ACII so that I have the papers to show I’m an insurer, I’ve completed my MBA, I’ve worked with change management to ensure I can look after different situations, I’ve gained a good understanding of the role of technology in business; but most importantly, I’ve learned about keeping costs down and ensuring people are moving towards the same goal.

“It hasn’t been easy but I enjoy what I do, I enjoy seeing something grow from nothing to something.

One of my biggest achievements will be when we have set up the general insurance side and hitting the numbers with diversification. We’re significant in health insurance and we have a strategic objective to be 50/50 in three or four years and we are well on the way to achieving those targets.”

PEOPLE POWERED Traditionally an industry where vacant positions can be hard to fill with talented, experienced people, the insurance business requires investments into training and development from organisations that want to thrive.

Resolution has long recognised this and continues to work so that its team is the best in the industry.

“We have around 220 in operations and around 300 sales agents,” says Mwai.

This large team has helped the company drive sales and acquire market share.

“Traditionally, insurance companies in Kenya have distributed through large brokers but we have signed up small agencies and individuals selling insurance and set up an in-house team of insurance sales agents, and that has helped us to grow our market share over time,” she adds.

Development of a strong team with a commitment to company culture and values has seen Resolution awarded a number of accolades in the past two years including commendations for customer service, training, innovation, marketing and customer satisfaction.

“Finding good underwriters and good sales managers is difficult especially someone who can work with a large corporation with large premiums and equally with the emerging consumer where unit premiums are very small. Finding a sales manager who knows the industry, who is tech savvy and who can manage a large pool of people is challenging. We do train, and sometimes we lose people, but it’s an ongoing investment and to date has not stalled us in any way,” says Mwai.

Resolution Insurance has the strategy, the products and the people, and its ambitious leader has eyes set on taking more and more market share in Kenya. Despite the economic outlook which has caused much business confidence to fade, Resolution Insurance continues to thrive and innovate, positioning itself perfectly for future growth.

“We have an ambitious strategy plan, we are in the process of raising capital to comply with new regulations, and we are excited about the opportunities with the emerging consumer space. We do have challenges, especially surrounding fraud, but we are excited about the space and time that we are in,” concludes Mwai.

RESOLUTION INSURANCE 254 709 990 000 info@resolution.co.ke www.resolution.co.ke

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SYLKO

Sylko Stronger Than Ever At

70 years

PRODUCTION: Manelesi Dumasi

In the year of its 70th anniversary, Sylko is a company going through major changes, positioning itself for a strong future in a new factory and with a new owner. Product development and innovation remains at the heart of the business and CEO Michael Attwood tells Enterprise Africa that despite economic woes in the country, now is an extremely exciting time for the business.

INDUSTRY FOCUS: MANUFACTURING

//

Durban’s Sylko is a partner of good times. Manufacturing and distributing paper plates, foils and household kitchen supplies, the company had grown to become the preferred supplier to braais, picnics, parties and get-togethers all over South Africa. A winner of product of the year awards, with regional offices around the country, and with an extremely strong brand, Sylko is enjoying an exciting period.

When Enterprise Africa spoke to Sylko back in November 2016, the company was focussing on product innovation to provide inspiration during a tough economic climate. Then-CEO Grant Attwood spoke of his happiness with the company’s innovative ‘2x Deeper Paper Plates’, winner of a Nielsen product of the year award in the food serving category.

Since then, Grant has made way for brother and COO Michael to take the helm. He was named MD in May and is overseeing a period of positive change.

Recently, Sylko’s performance and contribution to the economy was recognised when the company was purchased by the Twinsaver Group.

Owned by the Attwood family since 2000 and trading in SA since 1947, Sylko has a sterling reputation for business excellence. The transaction with Twinsaver has resulted in

renewed focus for Sylko and Michael Attwood is buoyant.

TWINSAVER ACQUISITION “I’m upbeat about the whole thing,” he says. “I’ve been involved the whole way through and it has taken a long time but we’re at a point where we look back and consider the whole process a good thing. It gives more opportunities for people, for the brand, and for the business in general. The nature of a smaller, privately owned family business was that we found it challenging to raise capital, but now we have ample backing and we have many more resources available for leverage.”

The sale has now achieved all regulatory approvals and has been completed with both parties looking forward to a prosperous relationship.

For Sylko, the next step is overcoming any short-term challenges associated with the purchase and integrating culture with Twinsaver.

“Change in large format is never easy,” Attwood admits. “We didn’t ever think it would happen without interesting developments. At the same time, we were very fortunate that we could almost pick and choose who we sold to as we’ve had several offers over a number of years but never progressed them as they’ve never been the right fit in terms of business focus

and looking after staff. With Twinsaver, they ticked all the boxes. They were very complimentary of the business and excited with the opportunities we present. It wasn’t about us coming into the group from a position of weakness but more about us coming in as a valuable partner and since the acquisition, we have been treated as such. It’s likely that there will be changes but we have been fully consulted with all of those and it’s constantly reiterated that we’re not changing for changesake but changing for a better group performance.”

Key elements of the deal for Sylko were the capabilities that Twinsaver has in the corporate market. Currently, Sylko is highly focussed on the ‘household’ market, selling mainly through established national retailers but Twinsaver provides an opportunity for expansion into other commercial sectors.

“Twinsaver gives us a focus on business-to-business, not formal retail but the likes of hotels, hospitals and similar trades so we foresee growth coming from there as we’ve never focussed on that area and Twinsaver has a lot of traction,” says Attwood. He adds that the reaction of staff to the sale has been hugely positive and the ongoing dialogue between management and employees has helped to smooth the entire process.

“You Think it ! We Move it !”

TMC logistics started in 2010, and has over 18 years’ experience in the distribution sector. TMC is a family business that drives this focus through in its ethics that we look after our customers as a family; we look to provide our customers with distribution solutions and the most cost effective and efficient way to their customers as an extension to their business. With Sylko as a strategic partner we understand there logistics needs and their customers’ expectations and together as a partnership we have grown. We look forward to the new venture and the new challenges ahead with this new merger and wish Sylko an abundance of success going forward and are happy to be a part of this journey.

Arriving at one goal is the starting point to another. ~ John Dewey ~

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SYLKO

“The trust that has been built over the years between management and staff; firstly with my father, then my brother, now me; has helped tremendously. It’s the responsibility of senior members of staff to insulate the staff and business in these times of change and constant, transparent communication is vital.”

PROSPECTON - CORNUBIA Earlier this year, Sylko moved its manufacturing centre from Prospecton, across Durban to Cornubia, to an all-new purpose-built facility. The company is a large-scale manufacturer of disposable and recyclable household foils, paper and plastic tableware, food wraps, baking accessories and many more products, and so the move to a new factory had to be precise and efficient. Thanks to effective planning, the move went off

without a hitch and there was very little business disruption.

“The decision to move came about 18-months before the expiration of our lease on our former premises,” Attwood explains. “We managed to find a developer who would develop a building for us and that was completed in October 2016. We talked with all of our staff in February 2016 and made sure that everyone was happy with the move as it was an extra 40km travel. We were involved in the build of the property to ensure it suited our needs exactly, and it was finished in December 2016. We moved in in March 2017 and the move only took a couple of weeks. We planned everything very well and we had built up stock before we shut down the old factory, decommissioned the machinery and moved everything across.”

Despite being slightly smaller, according to Attwood the new property is a vast improvement and has allowed for efficiency increases and productivity enhancements.

“The new factory is 6400 m2 compared to the old factory which was 7800 m2 so slightly smaller but much more efficient and cost-effective.

“We are now using LED lighting through the whole factory and that has the benefit of being environmentally friendly but also a lot cheaper in terms of electricity cost.

“Aesthetically, we’re in a much nicer area, it has been newly developed, and it’s very close to the airport in Durban. The building is a considerable upgrade on the old facility, it has a very good working feeling for staff and we now have more space from an admin perspective.

“Everything is a little closer

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INDUSTRY FOCUS: MANUFACTURING

together, a little more transparent, everyone is a little more engaged, and the vibe is very good,” he says.

ECONOMIC SLOTH Back in November 2016, the confidence surrounding the South African economy was not strong and businesses, including Sylko, were feeling the effects of a weak market. Today, the picture is not much prettier. Since then, the economy has been downgraded to junk status by international credit agencies, the Rand has continued to fluctuate unpredictably, and the situation remains precarious with official stats suggesting that the country is regularly flirting with technical recession. But last year, Grant Attwood remained positive despite the situation and this year Michael maintains that positivity in a challenging environment.

“Things have not got any better,” he says. “Technically we’re out of recession and have had some positive GDP growth but in reality it’s been far too little and all indications are that it’s going to continue being very tough for a long time to come. Not to mention the fact that there are serious thoughts that we’ll have another downgrade which would take us into junk status from an international debt perspective and FDI would all of a sudden become more expensive and that has massive ramifications in terms of national repo rates and rates from the bank. So, the state of the economy is no stronger than it was last year and there are a lot of indices that are saying that the economy has decoupled quite significantly from what other developing, similar economies have manged to achieve. The country is not giving investors an abundance of things to be confident about.

“Yes, the economy is not good, but we are doing very well.”

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Sylko’s sales have continued and it has maintained strong market share in all of the sectors it operates in. And thanks to the acquisition by Twinsaver, the businesses is now looking at growing its reach.

“We have had a good run for the past year. Our products in general are not purchased at the absolute lowest of the LSM. I think in general our products are not necessities but they are purchased by more affluent people who haven’t been hit as hard and they remain relatively cheap products so it’s not something that a more affluent customer has to forego.”

But it’s not just pricing that has helped Sylko insulate itself from the weak market, it’s also ongoing investment and as we hear so often, those that can invest when times are tough are those that will thrive when times are positive.

“We’ve got a lot more focussed on our brand and the attention we give to it. We’ve increased the promotional activity we put behind it and the distribution of the brand.

Dealer-owned brands have become very prevalent and we are certainly the dealer-owned manufacturer of choice in our categories and that is fantastic.

“Focussing on the brand has given us the opportunity to innovate, for margin enhancement, and for point of difference – which can then be of benefit to the dealer own brands as well. We’ve developed brand equity within the business and that can be used as enhancement for our sellers who can communicate that our products can enhance margins and category growth.

“The challenging economy is almost an opportunity because there are less competitors willing to spend money in a saturated market when the economy is struggling but the minute things get better everyone jumps to invest, but those who can perform well in the tough times will be better off when the

tide turns,” says Attwood.

But, unfortunately, the future remains unpredictable and despite the success of the business over the past 12-months, Attwood is keen to position Sylko for further challenges to come as retailers continue to feel the pinch.

“FMCG and the way that retailers deal with their suppliers has without doubt got more tough. The big retailers are asking us to consider every way we can save on input costs, asking us for every way we can contribute to advertising or promotion, and asking for every way we can contribute to price reductions together with them – and those are tough discussions. The retailers certainly are seeing reductions in footfall and spend, and seeing traffic moving to lower LSM stores,” he says.

70 YEARS STRONG 2017 marks the 70th anniversary of Sylko in South Africa. Starting life as a producer of kitchen products

SYLKO

including wrapping paper, rewound greaseproof paper, crepe, 1ply serviettes and wax paper, the business has grown and diversified to become the industry leader in its chosen markets. But with the company currently being a hive of activity following the sale to Twinsaver, celebrating a milestone birthday has fallen to the wayside.

“It’s on the lips of a lot of people” says Attwood “but the sale of Sylko and the inherent uncertainty that comes with that has downplayed that while we work out where brand focus is going. We have pushed it at trade shows and through point of sale positioning, but it’s taken a back seat while we reorient ourselves. When we reach our 75 years, then we will look at a big celebration.”

Through the end of 2017 and the start of 2018, the focus for the business will switch back from new ownership and new premises to product development and

innovation, further cementing the company as the market leader.

“We are without doubt the market leader in our category,” says Attwood. “Between the dealerowned brands and our own brand, we tend to have 70-80% market shares in the formal retail trade.

We have continued to innovate and add new lines as we go. We’re now growing with cups; we’ve introduced different styles and sizes. With plates, we’ve got a plan for a new development to disrupt the market. On the foil side, we’ve got a big innovation for dispensing that we think will be exciting in the not too distant future.”

Many South Africans are now used to uncertainty. The economic landscape in the country has become predictably unpredictable and because of this, companies that can position themselves for longterm success rather than shortterm gain are those that will shape the industries in which they play.

Sylko is one of these companies and has proven itself over seven decades. With all of the exciting developments underway, this is a business that will remain a partner of South Africa’s good times for many years to come.

“What characterises the good businesses in the South African market is a certain resilience to hardship and an ability to see your way through, understanding that everyone goes through the same hardship but you can’t give in, you must be the best performer,” Attwood concludes.

SYLKO 031 913 9500 consumercare@sylko.co.za www.sylko.co.za

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BLUCHIP RETAIL SOLUTIONS

End-to-End Solutions Drives

BluChip Expansion PRODUCTION: David Napier

BluChip Retail Solutions is expanding its reach across Africa and growing into new markets in Europe and the Middle East. This South African success story started life 20 years ago but only kicked into top gear following a change of ownership five years ago. CEO Brett Stagman tells Enterprise Africa more about the BluChip journey

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INDUSTRY FOCUS: RETAIL

//

With economic uncertainty fuelling negative thought when it comes to commercial activity in South Africa, it’s worth stepping back and looking at the bigger picture. South Africa grew by 2.5% in the second quarter exiting technical recession, the global economy is reasonably buoyant with trade volumes expected to increase by 4.2% in 2017, Africa remains the frontier for development with a number of emerging economies posting strong growth figures, international businesses still look to SA and Africa for expansion opportunities, and South African organisations continue to display financial strength.

Positivity is further evidenced in the retail sector where, according to Euromonitor International, ‘many consumers remain aspirational, with demand remaining strong for essential FMCG, especially products which are in line with global trends.

As a result of consistent demand from

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consumers, retail value growth rates remained positive overall in 2016.

Consequently, retailers continued to develop various strategies such as the expansion of their product ranges, the use of frequent promotions and price reductions to attract consumers and maximise their margins’.

Money continues to flow in South Africa - perhaps not at the rates seen in previous years, but there is certainly business around for those that are willing to go out and find it. And with consumers still looking to retailers, across different industries, to fulfil their needs, retailers are regularly looking at ways they can differentiate themselves from competitors to claim markets share. Whether it’s moving all operations online, opening more stores, consolidating product ranges or expanding to spread risk, the vehicle of the retailer - the shopfront – remains a key component in consumer interaction.

When Ernst & Young reviewed the SA retail sector in 2016, research suggested that retailers are increasingly focussing on customer satisfaction and technology. Findings also showed that ‘retailers with more diversified geographic earnings will be better positioned to withstand the pressures’.

This is where partnering with an experienced, proven and reliable partner can help take business to the next level. BluChip Retail Solutions has been providing innovative industrial shop fitting and brand manufacturing services to big names all over SA and Africa for 20 years. When the company changed ownership back in 2012, its influence really began to grow and its list of services expanded significantly.

Today, this growing company is an ‘idea lab’; a leader in future-technology, specialising in digital displays and content management solutions. It’s ability to provide and turn-key solution is what separates from the crowd.

“We were established in 1997 but

BLUCHIP RETAIL SOLUTIONS

//OUR ABILITY TO OFFER A COMPLETE SOLUTION IS WHAT SEPARATES US FROM THE COMPETITION – AND YES, IT IS A VERY COMPETITIVE MARKET// the business only became what it is today in 2012 so although it is officially our 20-year anniversary, we are not celebrating in a big way,” says CEO, Brett Stagman. “When the business changed hands in 2012, there was a lot of work to do to bring it to a strong position.

Since 2012, we have grown consistently at 25-30% per annum and we intend on maintaining this, or growing it, in the next three years.”

END-TO-END Delivering services from interior design through to steelwork, signage, VR and biometrics, BluChip Retail

Solutions is well-equipped to bring clients retail offerings to life. Whether it’s a greenfield development or an expansion of existing infrastructure, BluChip is experienced in delivering projects from start to finish.

“Our ability to offer a complete solution is what separates us from the competition – and yes, it is a very competitive market,” admits Stagman.

“It may sound niche, but there’s a number of established players in the industry. We can come in with expertise in everything from design and signage, through to construction and steel work and there’s not many

in the industry who can bring the number of different services that we can. That’s testament to our team, and demonstrates the level of knowledge and experience we have.”

BluChip’s portfolio includes work for powerhouse brands such as Spar, Alexander Forbes, Kurt Geiger, Superga, Guess, Timberland, Huawei, HP, Edgars, PwC, Pizza Hut, McDonalds, Pick n Pay, Boardmans, ABSA, Richmark, Forever 21 and many more.

BluChip organises its vast array of services into 15 categories: Design Services, Digital Services, Shop Fitting Services, Installation and Civil Services, Project Management Services, Retail Maintenance Services, Steelwork Services, Glass and Aluminium Services, Signage Services, Retail Property Advisory Services, VR Services, Biometric Services, UHF

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INDUSTRY FOCUS: RETAIL

Services, NFC Services, and Logistics Services. “We are able to transform your dream into a reality with our extensive range of propositions,” the company states.

“I play a strategic role in all the divisions, but each one of divisions has a head of department which manages its division on a stand-alone basis,” says Stagman.

In the ever-changing world of retail, many leaders are clear in their view that bricks and mortar stores are not finished and, while many are moving to solely online models, those that can adapt and tailor their physical offerings are those that are set to thrive. Examples include McDonalds which is implementing touch screen self-service ordering terminals in many outlets, Pick n Pay which has introduced self-service counters, major grocery retailers are installing electronic vehicle charging stations and license plate recognition parking systems, Samsung has rolled out major digital and VR displays in its stores, and Woolworths has expressed interest in the growing movement surrounding drone delivery services.

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South African Council of Shopping Centres (SACSC) CEO, Amanda Stops said recently: “It is not a matter of technology or online stores replacing the physical counterparts but rather how the two can complement each other in a harmonious way. The retailers and shopping centres of the future will be those who get the balance just right and who maximise technology and most importantly understanding the ever-changing needs of the customer.”

Pop up shops opened in New York recently demonstrated what could be widespread innovation of the future with social media integrated touchscreen mirrors in dressing rooms that allow for the request of alternative sizes or colours, charging stations for cell phones, and the ability to complete purchases without standing in lines or exchanging any cash.

Despite offering an industryleading range of services, BluChip and Stagman are keen to continue growing the business, bringing internationally recognised best services to the markets in which it operates.

“For us to achieve significant growth, we are actively going to be targeting new industry sectors. We’re now well-known and our clients are some of the most recognised in the country so our work comes with a strong reputation and that’s something we’d like to move into new industry sectors with new partners. We see major opportunities in the telecoms industry, not just here in South Africa but internationally,” says Stagman.

Growth in this sector has long been a target for BluChip and it has realised significant progress, securing significant deals with big names mobile providers.

“Our partnership with Vodacom has been a fantastic achievement,” says Stagman. “As they’ve grown in South Africa and Africa, we’ve been able to grow with them. Often, we have delivered a full suite of services.

We are hoping that in the future, we will be able to grow in Europe with Vodafone. We’ve already realised involvement in the UK and our target is to grow this exposure in Europe.

We’re also very keen and excited

BLUCHIP RETAIL SOLUTIONS

about prospects in the Middle East, particularly places like Dubai. We’re also extremely excited about the store roll out that we are involved in with Cell C, that will see many new stores opened and existing outlets refurbished and modernised all over the country.”

ALWAYS GROWING Geographic growth is also high on the agenda for BluChip and with a number of brands that the company has serviced successfully in the past expanding on the continent, there are big opportunities for development outside of South Africa.

“We currently manufacture retail furniture for a retailer in Dubai from the Landmark Group, on the Africa front we manufacture for Vodfone in the DRC and Cameroon,” explains Stagman.

“Africa is certainly a new frontier for us,” he adds. “We’re yet to attack new frontiers such as Nigeria or Ghana but we do see opportunities and it will be about finding the right opening. We do believe there remains a massive amount of work available in South Africa.

“Currently, we’re busy rolling out several stores in South Africa’s surrounding countries for Hifi Corporation and the Edcon group of brands.”

In the future, Stagman will look for M&A opportunities to further expand the company’s service portfolio and deliver any service that clients could demand. Minimising any outsourcing that might be needed is the vision, and the company is currently busy finalising its most recent acquisition which will be announced soon. “Acquisition is our preferred method of growing the business,” says the CEO. “We like to bring in skills that will add to what we can offer and constantly grow our service portfolio. It’s also about cost management; if we can acquire a business that can then provide us

with services across the business then it makes a lot of sense as it will save us money.”

Stagman, who joined BluChip three years ago, has experience operating in Africa and he has worked through challenging economic periods. “Prior to this appointment I was the CFO of a subsidiary of Blue Label Telecoms operating in the cellular industry in Mozambique, the DRC and Nigeria. I was living in Nigeria from 2009 to 2012.

“I don’t think the current economic situation is at all about politics - it’s cyclical. You must prepare for peaks and troughs in the economy and you can see that the companies that have managed to prepare correctly are the ones that are not held back when the tough times hit,” he says.

So despite the economic

uncertainty and the slow confidence around South Africa’s commercial sector right now, there are businesses that remain committed to achieving success, and BluChip Retail Solutions is the perfect example – innovative, exciting, modern, well-run, knowledgeable and sitting on a robust platform for strong future growth.

BLUCHIP SOLUTIONS 0861 888 335 sales@bluchip.co.za www.bluchip.co.za

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www.enterprise-africa.net / 89

EXHIBITION CALENDAR

KEY UPCOMING EVENTS ACROSS THE COUNTRY Our regular update to help you keep track of important events and exhibitions taking place across the spectrum of industry sectors.

AFRICA COM Cape Town International Convention Centre NOV 06 – 11 SECUREXPO EAST AFRICA Visa Oshwal Convention Centre, Nairobi NOV 07 – 09 ETHIOPIA TRADE EXPO Addis Ababa Exhibition Centre NOV 08 – 11 COMPACK SOUTH AFRICA Sandton Convention Centre NOV 16 – 18 WEST AFRICA BUILDING AND CONSTRUCTION NIGERIA Abuja International Conference Centre - Eagle Square NOV 14 – 16 MOZAMBUILD Centro Internacional de Conferencias Joaquim Chissano, Maputo NOV 22 – 24 ZAMBIA BUILD New Government Complex Conference Centre NOV 09 – 11

JMP - JOURNÉES MINIÈRES ET PÉTROLIÈRES DU MALI NOV 21 | BAMAKO The 7th International Mali Mining and Petroleum Conference & Exhibition (JMP) is set to take place in Bamako, Mali from the 21 – 23 November 2017, bringing together delegates and speakers from all over the world.

Established as one of the West Africa’s leading extractive industry conferences, this event is organised by the Ministry of Mines of Mali, in partnership with AME Trade Ltd.

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MOZAMBUILD 2017 NOV 22 | MAPUTO MOZAMBUILD is the leading and most well established, construction, building and interiors trade event in Mozambique

AFRICA COM NOV 06 | CAPE TOWN 100’s of expert speakers sharing visionary insights, cutting edge technologies from 450 exhibitors, the hottest networking events the industry has to offer, plus a brand-new Innovation Hall packed with future tech trends and the newest digital products.

TANZANIA TRADE SHOW Mlimani Conference Centre, Dar Es Salaam NOV 24 - 26 JMP - JOURNÉES MINIÈRES ET PÉTROLIÈRES DU MALI Centre International de Conference de Bamako NOV 21 - 23