Enterprise Africa June 2019

AFRICA

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

June 2019

www.enterprise-africa.net

The BevCo on Marathon Journey to Industry Success Exclusive interview with CEO Michael Benjamin ALSO IN THIS ISSUE:

CT Aluminium / Palabora Mining Company / Port of Cape Town / Portland

AWESOME AFRICA, NOW MORE ACCESSIBLE With our expanding network we provide seamless air freight solutions from South Africa to the world, via our global hub in Dubai. Business is booming across the African continent and Emirates SkyCargo, in association with our airline partnerships, connects African business with the rest of the world. From precious metals to the finest foods, we’ve got you covered.

skycargo.com

EDITOR’S LETTER

EDITOR Joe Forshaw  joe@enterprise-africa.co.za SENIOR PROJECT MANAGER Sam Hendricks  sam@enterprise-africa.co.za SENIOR PROJECT MANAGER Tommy Atkinson  tommy@enterprise-africa.co.za PROJECT MANAGER Shannon James  shannon@enterprise-africa.co.za PROJECT MANAGER James Davey  jamesd@enterprise-africa.co.za PROJECT MANAGER Chris Wright  chrisw@enterprise-africa.co.za FINANCE MANAGER Chelsea Pettifer  Chelsea@enterprise-africa.co.za SENIOR DESIGNER Liam Woodbine  liam@enterprise-africa.co.za CONTRIBUTOR Manelesi Dumasi CONTRIBUTOR Karl Pietersen CONTRIBUTOR David Napier CONTRIBUTOR Timothy Reeder CONTRIBUTOR Colin Chinery CONTRIBUTOR Benjamin Southwold CONTRIBUTOR William Denstone

Published by Chris Bolderstone – General Manager E. chris@cmb-media.co.uk Rouen House, Rouen Road, Norwich NR1 1RB

//

So, Cyril Ramaphosa is the sixth democratically elected President of South Africa and it seems as though business couldn’t be happier. Ever since his entry into politics, Ramaphosa has been known as business-friendly and now industry leaders are hoping that long-term stability, policy certainty, and economic strength can finally be achieved.

Since his tenure began, economic stability has seemed like a dream; far off in the future, without any realistic path to achievement. But now that he has five years in front of him, Ramaphosa is aiming to end corruption, restore confidence in state-owned organisations, create new jobs in new industries, embrace the Fourth Industrial Revolution, and drive steady economic growth as the dominant African player in global markets. Without doubt, his ambitions are shared by the business community, and the certainty that comes with his election has been largely welcomed.

At the Port of Cape Town – one of the key entry points for goods into South Africa – Port Manager Mpumi Dweba tells us about major investments that are set to be realised in the coming years. At Palabora Mining Company in Limpopo – South Africa’s largest copper mine – Comms Manager Lydia Radebe tells us that underground expansion of the mine continues to move downwards with great success. In Cape Town, at CT Aluminium – leading window and door manufacturer – huge investments into new technology are now starting to show their value. Beverage manufacturing specialist, The Beverage Company, is planning expansion into new markets. Clearly, for those with a well-planned strategy, South Africa remains an upbeat place to do business, and further certainty will only add to the positivity.

Get in touch and tell us more about what the results of the election mean to you, and if you believe that anything will change in the future, as promised by President Ramaphosa.

We’re online, as always, @EnterpriseAfri1 and at LinkedIn.

Administration & Finance +44 (0)20 7193 0419 Advertising & Feature Sales +44 (0)20 8123 7859 Editorial & Design +44 (0)20 7193 2735 E. info@cmb-media.co.uk www.cmb-media.co.uk CMB Media Group 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 Media Group Ltd 2019

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

84/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/THE BEVERAGE COMPANY The BevCo on Marathon Journey to Industry Success Operating in the highly-competitive soft drinks manufacturing industry in southern Africa is no easy business, and only those with a clear and considered strategy succeed. A relatively new player to the market, in its current form, The Beverage Company is looking to constantly grow by offering a range of ‘local hero’ brands combined with globally recognised champions. CEO Michael Benjamin tells us more about the company’s establishment, growth, and ambition during these tough economic times.

8/ 4 / www.enterprise-africa.net

CONTENTS

18/

27/

INDUSTRY FOCUS:MANUFACTURING 8/THE BEVERAGE COMPANY The BevCo on Marathon Journey to Industry Success

34/ 50/SAFARICOM Investing in New Capability to Fuel Future Growth INDUSTRY FOCUS:AGRICULTURE

18/CT ALUMINIUM Manufacturing Quality and Strength = Solid Sustainable Growth

59/ZAMBEEF Retail Roll Out Boosts Award Winning Zambeef

INDUSTRY FOCUS:MINING

65/FRESHMARK Truly the Pick of the Bunch

27/PALABORA MINING COMPANY PMC Lifts Municipal and Provincial Economy INDUSTRY FOCUS:LOGISTICS 34/PORT OF CAPE TOWN Investment to Position Port Among SA’s Finest INDUSTRY FOCUS:TECH

INDUSTRY FOCUS:FINANCE 71/SANTAM NAMIBIA Insurance That Adds Value INDUSTRY FOCUS:CONSTRUCTION 77/PORTLAND Portland Shows Strength Amidst Unstable Industry Backdrop

40/TARSUS TECHNOLOGY GROUP Cloud Simplified From Tarsus www.enterprise-africa.net / 5

NECSA CEO REMOVED FROM OFFICE

RAMAPHOSA - ACHIEVING A SA WE WANT

Former-NECSA CEO Pumzile Tshelane Energy Minister Jeff Radebe has removed Phumzile Tshelane as Chief Executive Officer and Board Member of the Nuclear Energy Corporation of SA (Necsa) as of Saturday, 11 May. “Please note that having considered the serious nature of the charges against Mr Phumzile Tshelane together with the Board resolution and the recommendation of the disciplinary panel, I have in terms of the Section 17 (1) (c) and 22 (4) (c) of the Nuclear Act, Act 49 of 1999 taken a decision to remove Mr Phumzile Tshelane in his position as the Chief Executive Officer and Board member Necsa,” said the Minister.

At a media briefing in December last year, Radebe announced that Tshelane has been placed on precautionary suspension.

Meanwhile, the Necsa board will soon embark on the advertising and recruitment process to fill the vacant position in the board.

Necsa, which falls under the ambit of the Department of Energy, is responsible for undertaking and promoting Research and Development (R&D) in the field of nuclear energy and radiation sciences.

6 / www.enterprise-africa.net

©President Ramaphosa Photo GCISs

President Cyril Ramaphosa has called on business, labour as well as South African citizens, to mobilise all resources to address poverty, inequality and unemployment, as the country embarks on a new era, key to which would be forging an ethical state free of corruption.

“Let us forge a compact for an efficient, capable and ethical state, a state that is free of corruption, for companies that generate social value and propel human development, for elected officials and public servants

who faithfully serve no other cause than that of our people. We must be a society that values excellence, rewards effort and rejects mediocrity,” he said.

Acknowledging that the road ahead will be difficult, the President said the entire society would have to use courage, wisdom and perseverance to “achieve the South Africa we want.”

The President was addressing the country, shortly after being inaugurated as the sixth democratically elected President of the Republic.

NEW HILTON HOTEL FOR CAPE TOWN The Canopy by Hilton brand will open a new hotel in Cape Town in 2021. In a management agreement with Growthpoint Properties, Hilton Hotels will open its 150 room, Long Kloof Studios hotel on the corner of Park Road and Kloof Street.

Canopy by Hilton is a brand targeted at travellers looking for an authentic local feeling and positions its hotels in areas off the beaten track.

According to a statement from Growthpoint and Canopy by Hilton, the hotel will represent a R550 million investment into the city.

“Canopy by Hilton becomes our third brand to gain a presence in the city and we are eyeing further expansion. The decision to locate Africa’s first Canopy by Hilton here, is testament to not only the strength of the destination, but the quality of partners at Growthpoint, as we seek to create a showcase interpretation of the brand to introduce to the African continent,” said Patrick Fitzgibbon, senior vice president, development for Hilton in Europe, the Middle East and Africa (EMEA).

NEWS SNAPSHOT SA COMPANIES READY TO TAKE OPPORTUNITIES IN UGANDA South African companies seeking trade opportunities in Uganda have expressed satisfaction with progress made in the East African country.

Local companies in the agro-processing, capital equipment, energy and furniture sectors participated in the Outward Trade and Investment Mission (OTIM) through the Department of Trade and Industry (dti).

The mission is organised and funded by the dti through its Export Marketing and Investment Assistance Scheme (EMIA). The objective of the scheme is to develop export markets for South African products and services and to recruit new foreign direct investment into the country.

The 25-member delegation arrived in the capital Kampala in May and searched for trade and investment opportunities the East African country for a week.

SIBANYE BECOMES WORLD’S MOST PROMINENT PLATINUM MINER Sibanye has moved on from its golden era and now becomes the world’s number one platinum miner following the acquisition of Lonmin which was approved by shareholders at the end of last month.

The company now sits ahead of Anglo Platinum in the rich platinum industry of South Africa and is only second in the world behind Russia’s MMC Norilsk Nickel PJSC when it comes to palladium output.

Along with capital assets, Sibanye now employs some

90,000 people across mining, processing and management, bringing political clout to the company.

CEO Neal Froneman said: “This is a culmination of a long-term strategy. It positions us in the PGMs sector where we believe in the long term future.”

Commentators suggest the deal could add $150 million to annual cash flow; money which Froneman will have to use to help pay down Sibanye’s large debt after several acquisitions.

TRAVELSTART BRINGS IN NEW INVESTORS Travelstart, Africa’s leading online travel company has announced a new partnership with global private markets investment firm HarbourVest, with $58 billion under asset management, who will become a significant funding partner for the company.

HarbourVest will support Travelstart’s further expansion in geographies and growth in new verticals in the continents $194 billion tourism and travel market.

“The partnership with HarbourVest is a confirmation of the future opportunity in online travel in this continent, our business and our team,” says Stephan Ekbergh, founder and CEO of Travelstart. “We are very excited to have them on board.”

The investment comes on the back of MTNs Asset Realisation Program. MTN and Travelstart will continue its commercial relationship.

Stephan Ekbergh - Travelstart Group CEO

www.enterprise-africa.net / 7

THE BEVERAGE COMPANY

The BevCo on Marathon

Journey to Success PRODUCTION: Karl Pietersen

Operating in the highly-competitive soft drinks manufacturing industry in southern Africa is no easy business, and only those with a clear and considered strategy succeed.

A relatively new player to the market, in its current form, The Beverage Company is looking to constantly grow by offering a range of ‘local hero’ brands combined with globally recognised champions. CEO Michael Benjamin tells us more about the company’s establishment, growth, and ambition during these tough economic times.

8 / www.enterprise-africa.net

INDUSTRY FOCUS: MANUFACTURING

//

A leading soft drinks manufacturing business in South Africa is coming up with a plan that will delight customers by delivering a range of locally prominent brands combined with internationally-recognised staples. A forward-thinking and modern organisation, The Beverage Company (The BevCo) was officially established in 2018 after the merger and acquisition of several regional players, creating a nationally significant business.

Headed by industry veteran Michael Benjamin, The BevCo has, in a short period of time, utilised the existing infrastructure at its disposable to create a powerful South African business with exposure across all of the southern African nations.

Right now, there are plans bubbling away behind the scenes that will see The BevCo grow further to take on some of the mighty names in the highly competitive industry, while all the time remaining sustainable and responsible.

Michael Benjamin CEO

10 / www.enterprise-africa.net

STRENGTH IN DEPTH In 2018, after years of planning and strategizing, The BevCo was launched after a consortium, led by Ethos, acquired Little Green Beverages (LGB) and Softbev, two of the country’s large manufacturers and brand owners.

LGB was strong in the Eastern Cape, Mpumalanga and Gauteng, and Softbev was strong in KZN, the Western Cape, and Gauteng through its subsidiaries Shoreline and Quality Beverages.

With the acquisitions came important brands including Coo-ee, Jive, Refreshhh, Reboost, 7UP, Capri-Sun, Mirinda, Mountain Dew, Pepsi and Pepsi Max. This created a platform from where The BevCo could become an able challenger. Today, the business has more than 1000 employees across five manufacturing locations in all of South Africa’s major metros.

CEO Michael Benjamin, a big sports fan, talks to Enterprise Africa about the ambitions of this young and vibrant company, using the marathon as his analogy.

“I don’t sleep happy at night knowing we are number two. Others are

looking to take our share, so we always need to be growing our business – if you’re not growing then you’re dying,” he says.

“I would love to be number one but we have to stand back and look at whether that is a realistic dream in a five year period – and in that time frame it is unrealistic. By any measure, Coca-Cola is the leader in the market. I always say it’s like running a marathon.

If you can run the marathon in four hours, that is great. But if you want to get to world-class levels, there are many hurdles to overcome. As you get quicker and quicker, things become slightly easier. That is the journey we are on.

We need to concentrate not only on market share but our building blocks of penetrating each market, making our brands relevant, investing behind the scenes – whether that is refrigeration, communication, or ensuring product quality. By doing all the right things, we will get to grow the business, but you can’t preordain growth or market share.

There is a realisation that we are going through the hard yards and you can’t wave a wand to achieve success.”

THE BEVERAGE COMPANY

8. Western Cape Marketing presentation-TBC Conference 26.9.18 Day 1

PACEMAKERS A strategic decision was taken a long time in advance of the founding of The BevCo to ensure that the whole organisations stays thirsty for success.

This decision saw an Exco and management team appointed that has impressive industry experience but has not been fatigued. It is packed with energy and has been given freedom to go out and build on a robust platform.

“Within these businesses, there are incredible entrepreneurs and entrepreneurs tend to move with speed – we don’t want to lose that,” says Benjamin.

“The collective leadership has a very sough-after track record,” he adds. “We haven’t gone for ivory tower people; we have gone for people who have run operations and are specialists in their fields. We have a number of

// FOR US TO STAY RELEVANT, WE BELIEVE WE NEED TO GAIN A BIGGER PORTFOLIO //

people who are midway through their careers and have plenty of time left yet where they want to achieve rather than seeing this as their swansong.”

By making the entire leadership team shareholders, The BevCo has ensured that its top people are invested in results. “It drives a very different decision-making process. They are tied to the credibility of the business and they are invested in the growth agenda,” says Benjamin.

Ensuring that a forward thinking approach is instilled throughout the organisation, leadership takes the time every quarter to get out to each of the company’s sites and talk to employees face to face, in a transparent manner, to further understand performance statistics and look at what is working and what is not. This is all part of a wider vision for the business. “It all comes back to our purpose,” explains Benjamin.

“If we get it right, each employee will improve the financial situation for their family through investment in skills and their own learning. If this happens, it will improve returns to shareholders, and that will help us build an African legacy of true excellence.”

TRUE EXCELLENCE The BevCo brings an unrivalled product portfolio to its clients. Choice is a key factor in its offering for consumers and, between its local heroes and global champions, customers are given excellent variety. But the portfolio is never finished, and Benjamin admits much is happening behind the scenes to develop the product range.

“It doesn’t take a rocket scientist to work out that there is a massive shift in global consumer trends and these impact our local trends. For us to stay relevant, we believe we need to gain a bigger portfolio. We have a number of categories we are very actively looking at. To give you an indication, R&D will be quadrupled next year and that should indicate, from a strategic point of view, our level of investment and belief in what we need to do to stay relevant.”

Without revealing exactly what sort of brands are being investigated, Benjamin says that the company is extremely interested in global trends and will invest accordingly.

“Health and wellness is certainly a focus,” he says. “There are unique challenges with water quality in

www.enterprise-africa.net / 11

INDUSTRY FOCUS: MANUFACTURING

// R&D WILL BE QUADRUPLED NEXT YEAR AND THAT SHOULD INDICATE, FROM A STRATEGIC POINT OF VIEW, OUR LEVEL OF INVESTMENT AND BELIEF IN WHAT WE NEED TO DO TO STAY RELEVANT // Africa and so some categories are about sustaining life rather than just refreshment. There are other categories that surround meal replacement. There are categories that have a growing awareness around packaging and carbon footprints – we are looking at a wide range of options.”

True excellence in the product range can only be achieved if true excellence is chased across the company’s

manufacturing base. With sites in Johannesburg, Cape Town, Durban and East London, The BevCo has South Africa well covered and will not look to invest into further premises at this time.

However, true excellence is an ongoing and everchanging journey, and so The BevCo is looking to make the most of its existing infrastructure, expanding and improving what is already in place.

“We are looking at expanding our five manufacturing facilities,” details Benjamin. “All of our sites have different areas where they are strong and weak.

We have identified pockets of excellence which we think we can share and use to improve the operating level of the business. We are putting in canning lines which gives us flexibility for innovation and materially improves our canning volume - these can be put in on existing sites. There is not a strategic need to go and expand our footprint, and subsequent costs, when we do have the facilities that we can grow and evolve.”

With reduction in plastic usage on the radar for all manufacturers, the canning line comes at the prefect time for The BevCo. Aluminium cans are fully

7. Justin Geyve Chief Commercial Officer and Ernie Els with Els for Autism Water

12 / www.enterprise-africa.net

recyclable, strong, adaptable and have the ability to sustain carbonation.

“Anytime a commercial imperative meets a sustainable imperative, you’ve got a winner for business,” says Benjamin. “The canning line gives the ability to play in a wider market, it gives us the ability to be better with recyclable material, and it delivers efficiency. We were one of the first companies, if not the first, to go into recycled PET and the challenge there is putting in carbonation that lasts. Sustainability for us is not only in packaging.”

He goes on to explain how a wider sustainability drive is helping the company to become efficient at a worldclass level.

“Cape Town is known for its water scarcity. We managed to move our water ratio down from 1.8 litres per litre produced to 1.3 litres which is globally world-class. We use new software which monitors our sustainability with water, electricity, wastage and more. The result has been all of the figures being driven down. Even decisions like where we position our distribution centres have been made with sustainability in mind.

THE BEVERAGE COMPANY

Truck volumes, distances, centre of gravity – everything is done to ensure we align a commercial imperative with a sustainability imperative.”

Structuring in this way has helped the company to expand its presence across southern Africa, with demand for its brands continuing to grow. Already available in Namibia, Botswana, Zambia, Lesotho, Eswatini and Mozambique, The BevCo will undoubtedly look for further opportunities on the continent.

“It’s no secret that there is population growth around Africa and with that comes available disposable income and a broader range of choice which we can create that might not be available in those markets,” says Benjamin. “Because of this, growth in Africa and bolstering exports into Africa is most definitely part of our strategy.

All of the original entrepreneurial businesses have developed really strong relationships with a number of role players in these markets, and they are committed to a growth agenda.”

TAXING SUGAR PROBLEM While The BevCo has achieved much in its short life, there have been challenges that needed swift and decisive action – primarily the Sugary Beverages Levy, introduced in April 2018.

Known as the ‘sugar tax’, the idea is to help reduce health concerns in South Africa that are attributed to over consumption of sugary goods. As the sub-Saharan African country with the highest rate of adult obesity, the country certainly has work to do. The sugar tax was fixed at 2.1 cents per gram of

// ANYTIME A COMMERCIAL IMPERATIVE MEETS A SUSTAINABLE IMPERATIVE, YOU’VE GOT A WINNER FOR BUSINESS //

sugar content that exceeds four grams per 100ml, from 1 April 2019 this has increased to 2.21 cents per gram of sugar. The first four grams per 100ml are levy free and fruit juices are exempt.

Initially, there was major concern among manufacturers that the tax would hit the bottom line hard, but for those that were prepared and willing to innovate, a concern has become an opportunity.

“For me, that was a major shock in the industry,” remembers Benjamin. “We had to decide on a strategy in a very tense operating environment. We did a lot of testing in the background and we engaged widely with stakeholders. We eventually took what we considered to be a calculated bet by diverting all of our R&D to developing our underpinning consumer promise of offering as good a taste as any competitor, at a better price. We worked hard to make sure we stuck to the taste promise. In November, we put reformulated products into the market one by one, six months ahead of the sugar tax, to see how they interfaced with consumers. Market testing is one thing but many things fail when consumers finally come into contact with them, but we had no adverse feedback or anything else. When the sugar tax came about, we were very comfortable with our ability to deliver a product that consumers wanted. On the 31st of March, we closed production for a day so there was absolute clarity between pre and post sugar tax with us only producing below the levels required for the authorities.”

This success was almost unmatched

by The BevCo’s competitors. Preparation, innovation, and ongoing communication with customers allowed the company to deliver exactly what the market required.

“It has certainly given me a boost as I know that we can try new things and be successful,” says Benjamin.

Now, The BevCo is going even further and exploring ways to constantly adapt the product portfolio so that health conscious, taste conscious, and value conscious consumers are all satisfied.

// WE HAVE A RALLYING CALL ABOUT RISING UP. WE RISE UP AHEAD OF THE ECONOMY, WE RISE UP AHEAD OF THE INDUSTRY, AND WE RISE UP AHEAD OF OUR OWN PREVIOUS RESULTS // “Take energy drinks which are growing in popularity globally – we see now as the perfect time to reformulate and offer a healthier drink that still matches what consumers want in terms of taste, mouthfeel, tanginess. In October last year, we took our biggest energy brand, Reboost, and reformulated it from 12 grams of sugar down to four, and 88% of people preferred it. We were able to go into peak with the same full-body mouth feel, at a competitive price point, which is better for the consumer. It stood up against the tests and has been a real success,” says the CEO. SPARKLING WHILE OTHERS GO FLAT Demonstrating the typical entrepreneurial fashion that Benjamin wants to flow throughout The BevCo, the CEO is not willing to let a slow South African economy put a dampener on the company’s growth prospects.

The country has not posted significant growth figures for almost a decade, and has also been through several technical recessions. But with the political situation now seemingly stable, and with business very much at the forefront of government’s approach to economic development, now is a good time for companies with a strong strategy.

Continues on page 16

www.enterprise-africa.net / 13

SUSTAINABILITY, INNOVATION and ENVIRO-FRIENDLY OPPORTUNITIES It is our intention to be a supplier that looks at the Safest and most economical way to wrap a pallet. This does not mean that we must be the cheapest per roll or per kilogram, rather we want to offer a package whereby the full value of packaging is achieved. This means that we can offer the knowledge of how plastic and the wrappers should be run, without having to rely on the OEM to always be on site to do adjustments. As plastic specialists we are backed by our NEWTON TEST CENTRE who are on hand to offer solutions to all types of packaging and machinery.

With the use of technical development Taigan has been able to offer innovation through the fact that we have moved from a 3 layer cast stretch film to now being the Company that offers 33 and 55 layer NANO stretch film to the South African market, a feat that no other manufacturer can match. This development was made in order to look at reducing the amount of plastic required to wrap a pallet without detracting away from the importance of why wrapping is being used. It is not a sake of downgauging to protect manufacturers margins, it is done to improve packaging by using high tech raw materials that allows for NANO technology to be successful worldwide.

Sustainability is a key influence for any market. The understanding that if we did not look at improving efficiencies in extrusion and the correct use of raw materials, this would leave us at a stagnate situation. It is for this reason and the belief that for us to succeed, new equipment such as 2 more 55-layer NANO CAST LINES are on order or being installed, thus offering a monthly extrusion tonnage of 10000 tonnes.

Traceability also has developed with NANO extrusion and we are able to track the exact extrusion conditions of each roll and at what position on the shaft by checking the BARCODE in each roll core. This information gives the DNA of each roll extruded and supplied to our customers. Rolls of our NANO film is protected by individual cartons, although this might seem a bit expensive handling conditions are eliminated, and no waste occurs due to damaged edges.

NANO film is 100% recyclable. The film is OXO degradable which means it is not BIODEGRADABLE, but the portions break down into smaller pieces which makes it easier to recycle. When we supply our hand wrap rolls it is our intention to create a footprint whereby we look to recycle the returned core and offer a savings to the customer. Our hand wrap cores are manufactured in Green for identification.

NANO film is ENVIRO FRIENDLY as it is manufactured to offer thinner film which means less plastic is needed to contain a pallet of goods. The correct use of raw material in extrusion by adding layers such as 33 or 55 allows for the strength and puncture to be maintained and the integrity of the film to be no compromised. This is a first for our country and we are market leaders to promote our social responsibility.

The importance of correct wrapping needs to be understood. Stretch film has been developed to hold goods on a pallet in the SAFEST way but by overstretching the film can result in unstable pallets of goods being transported. It is for this reason that we offer load RETENTION testing at each trial so that we can determine the correct amount of plastic to apply and at the correct cycle which should achieve a maximum stretch value of 5.5 – 6um around a pallet. Thinner or thicker offer other challenges such as waste or falling loads. The correct settings on automatic wrappers are the key to offering effective cost savings.

A full cost analysis is always conducted by our team to set standards and hold us accountable for our product performance .

OUR GOALS : -

Always look at saving money in a responsible way

-

Innovation and understanding customer needs

- Technical development and training at each site 14 / www.enterprise-africa.net - 100% commitment to all customers to be their packaging solution and partner -

Introduce our T.nano55 as the next stage of enhancing the packaging at reduced costs

-

Improving on the current packaging and being partners not suppliers – ADD VALUE

-

Taigan follows it’s triangle of trust, QUALITY, INTEGRITY and EXCELLENT SERVICE with you the customer at the centre. It is branded on all our products.

14 / www.enterprise-africa.net

THE NEXT GENERATION OF STRETCH FILM

THE t-nano RANGE OF 33 AND 55 LAYER STRETCH FILM IS THE NUMBER ONE CHOICE FOR SUSTAINABILITY, LOAD STABILITY AND SAFETY. Contact us today and we’ll show you how the innovative technology behind t-nano stretch film can help your business increase load stability and save costs without sacrificing your consideration for the environment.

TAIGAN.CO.ZA • JHB: +27 11 974 1811 • CPT: +27 21 948 8215

INDUSTRY FOCUS: MANUFACTURING

Isando Johannesburg DC

Continued from page 13 “There are headwinds but that is no excuse. There have been headwinds over the past few centuries and people have found ways to thrive, growing really sustainable and powerful companies. I can’t see why we wouldn’t be able to do that,” says Benjamin.

“Anytime there is an election, there is a degree of uncertainty but that normally passes. There are not normally massive changes, and I don’t think there has been in South Africa. Getting the election out of the way is business positive, people now have a degree of certainty and direction. President Ramaphosa has been clear on many fronts, especially being business friendly, but that doesn’t mean that everyone is.

There has been an acknowledgement that government can’t provide growth, employment and everything. Business will be the engine, whether it’s large or small and medium enterprises. People know that it’s now worthwhile investing – we definitely know that. Our canning line represents many millions that are

16 / www.enterprise-africa.net

being put into the ground because of our long-term belief in the returns.

“Leadership is South Africa has to stand up and realise that we can’t wait for someone else to help us. We have to create individual businesses that behave ethically, drive growth, allow for inclusion of everybody, and behave like first-world organisations – as trends move, we can’t get stuck in the past,” he adds.

It is this attitude of success during difficult times that help positivity to continue. “We are outperforming the industry,” states Benjamin.

“We have a rallying call about rising up. We rise up ahead of the economy, we rise up ahead of the industry, and we rise up ahead of our own previous results. That has resonated quite well and we are on track to achieve our business case. Anytime you go through M&A you are worried that people have prepared their business for sale, and in FMCG you can stock the market. We seem to have navigated the initial nine months well but we are concerned about the economy going forward. The amount that we have had to do to protect bottom

line has been considerable and we expect it to carry on like that. But, we see the resilience needed to do this as a competitive advantage. When there are headwinds in the economy, not many people are successful, so we see it as an opportunity,” he adds.

COMMUNITY COMMITMENT Despite having a national footprint and a major workforce, The BevCo remains a committed, proudly South Africa business with customers, consumers and communities at its heart. The goal

// WE HAVE IDENTIFIED POCKETS OF EXCELLENCE WHICH WE THINK WE CAN SHARE AND USE TO IMPROVE THE OPERATING LEVEL OF THE BUSINESS //

THE BEVERAGE COMPANY

of the business has never been to install a corporate feel into daily operations.

It has never been suggested that a ubiquitous power brand should take over all manufacturing and distribution; in fact, the opposite is true – The BevCo wants to keep a plethora of local hero brands available to ensure it has a stake in a wide range of communities around southern Africa.

“One of our driving forces remains relevance in the local communities,” states Benjamin.

Just one example of how the company has excelled with community upliftment came after The BevCo partnered with South African golfing star Ernie Els to contribute towards support for children living with autism. For every 500ml bottle of Refreshhh water sold, The BevCo donates 25c to the Els for Autism Foundation.

“We want to find ways to contribute that are relevant to our communities and impacts on them. The autism prevalence rate is exceptionally high and is growing globally. It has no boundaries in economics, race, age or anything else.

There is a centre in Braamfontein that is focussed on helping people with autism and we saw that as a very tangible way to show commitment locally to something more than just profit,” Benjamin explains.

The BevCo has also established The Beverage Company Education Fund which awards scholarships to disadvantaged students. 39 young people who were struggling to access education will benefit from the fund in 2019. In the future, this investment will continue, reaching R750,000 by 2020.

In the future, The BevCo is without doubt a business to watch. Ambitious, innovative, nimble, ethically driven, and committed to South Africa, a plan has been made for every scenario. The ultimate goal is to play a more significant role in the industry in Southern Africa, and currently everyone in the business is satisfied with progress.

“Looking at the level of innovation since the acquisition of LGB, we’ve probably averaged around one per day, whether it’s pack size, flavours, sugar tax reformulations, source of water supply – that is an incredible rate,” says Benjamin.

It’s difficult to find drawbacks in this exciting young business. With soft drink consumption, and associated effects on health, under a greater spotlight than ever before, only those that do things right will be truly successful.

“We have an extraordinary team of highly-competent, highly-experienced individuals who are passionate about the business and committed to our strategy.

Plus, we have a portfolio of much-loved brands which offer excellent quality at an affordable price. We also have hugely supportive shareholders (in Ethos and Nedbank) who have partnered with us – both financially and strategically – and share our strategic vision and vigour.

“Yes, it’s going to be hard work.

But we are resilient and accustomed to rolling up our sleeves,” Benjamin concludes.

WWW.THEBEVERAGECOMPANY.CO.ZA

www.enterprise-africa.net / 17

CT ALUMINIUM Manufacturing Quality and Strength =

Solid Sustainable Growth PRODUCTION: David Napier

Leading window, door and shopfront business, CT Aluminium, is bucking the trend when it comes to growth in the manufacturing industry. By carefully investing into new technology and approaching business with a sound strategy, the company has done nothing but expand since 2014. Production Director, Gareth Gilks talks to Enterprise Africa about the success of this expert aluminium and glass organisation. www.enterprise-africa.net / 19

INDUSTRY FOCUS: MANUFACTURING

//

South Africa’s manufacturing industry has been in decline for the last decade. In the past, the country has been a strong manufacturer, known for its expertise across multiple industries including automotive, textile, metals, chemicals, electronics, food and beverage products, and many more.

But with cheap imports of extrusions coming from around the world, high costs associated with labour and distribution, and a lack of skills, local manufacturing has struggled.

In 1997, manufacturing contributed 18% of the country’s GDP. Last year, that figure was down to 11%.

The global financial crisis impacted on the industry hard. With the wider economy growing at no more than 2% between 2008 and 2012, manufacturers have faced many hurdles.

Across Africa, manufacturing has been hailed as a solution to unemployment and balance of payments concerns, but with the fast onset of the Fourth Industrial Revolution, many companies are struggling to keep up and the fear is that manufacturing could again fall to the wayside.

For South Africa, President Ramaphosa has highlighted manufacturing as part of his plan to

// THE KEY IS TO GET YOURSELF INTO A POSITION SO THAT WHEN TIMES ARE TOUGH AND THE OPPORTUNITY FOR WORK IS LIMITED, YOU ARE THE PREFERRED SUPPLIER THAT PEOPLE WANT TO APPROACH // 20 / www.enterprise-africa.net

stimulate economic growth. By the end of 2018, he was already ahead of his target to attract R100bn in FDI, and big manufacturers including Nissan, Ford, Mercedes-Benz, BAW SA, Defy and many more have made hefty commitments to the country.

On the ground, it seems as though the tide is turning, at least for some of the country’s quality-focussed manufacturing businesses. For Cape Town-based CT Aluminium - a leading supplier of aluminium windows, doors and shopfronts - investments into modern technology and a positive approach to business have helped the company to achieve impressive growth.

“Last year was a tough year but, thanks to good management, we created a buffer for lean times,” explains Production Director Gareth Gilks.

“That allowed us to get into a position where we could ride out the storm.

Things are a lot better this year and, yes, the economy remains weak, not growing as it should be but there is still development taking place and the key is to get yourself into a position so that when times are tough and the opportunity for work is limited, you are the preferred supplier that people want to approach.

“Providing a good product, with good service, while being competitive, we have placed ourselves in a position so that we are well-known in the Western Cape and the people that deal with us know that they can rely on us.

Word of mouth has taken us a long way and right now, we are extremely busy,” he says.

MANUFACTURING SUCCESS Founded in 2000, CT Aluminium began as a small-time manufacturing business, serving a small client base from a small rented building on a farm in Durbanville. After initial success, Richter van Renen bought into the business as a partner and eventually became the sole owner. He continued with a focus on quality. By 2012, the company’s

// WE CHOOSE TO NOT COMPETE ON PRICE ALONE. WE OFFER FANTASTIC SERVICE AND REPUTATION, AND WE ARE BACKED BY QUALITY // reputation spanned the Province and CT Aluminium had become the go-to supplier in the Western Cape. Capacity had been reached and a move to bigger premises was required. In 2014, the company settled into its new home at the Brackenfell Industria. “Since we moved in 2014, all we have done is grow. We are now at a point where we need to stop growing so quickly and consolidate everything and streamline so that we can look at growth again. In 2015, we became a (Pty) Ltd,” states Gareth.

Key in the company’s growth has been investment into new technology that has improved efficiency, quality and capacity. By sourcing machinery from Europe, CT Aluminium has aligned its tech with the best in the industry. Over the past two years, R8 million has been spent on profiling, cutting, glass and double-glazing technology.

“The first big buy we completed was from Elumatec which supplies profile machining centres to the aluminium and UPVC industry and is a world-leading company,” details Gareth.

“In 2015, they came to us with the idea for a revolutionary machine called the SBZ628. It is a fully automated profile machining centre and it eliminates a lot of manual work. We looked into the idea and learnt more about the technical details and we decided to go for it. We placed the order in 2015 and they started building it. In September of that year, Elumatec had a trade show at their factory in Germany and we

CT ALUMINIUM

went over the look at the machine for the first time.”

Elumatec installed the machine at CT Aluminium’s site in February 2016 and it was just the second installation in the world. “Currently, it remains the only machine of its type in Africa and the only one in the southern hemisphere. It gives us an extreme advantage,” says Gareth. Efficiency, safety and labour savings have all been achieved since the installation was completed.

“Previously, we would send down paperwork with cutting lists for operators on saws. Now, everything is programmed on computers in the office and that programme is exported to the machine which tells the operators which profiles to load onto the conveyor belt and the machine does the rest. Everything comes out

of the other side with labels printed so that the assemblers know exactly where each part goes. It has allowed us to redistribute staff to other areas of the production line, taking them away from the processing part and moving to the assembly line.”

GLASS UPGRADE After the Elumatec SBZ628 was installed, CT Aluminium’s production capacity grew significantly and the machine helped the company to push through bigger numbers. While this was of course a real boost for the business, it was creating a bottleneck in the glazing department. “We decided that the next step must be to automate the glass department which was still very manual,” Gareth explains.

“We approached FG Trading and created a glass processing plant inside

our existing factory. We invested into two new Macotec cutting tables from Italy, one is an automated float glass cutting machine and the other is an automated laminate glass cutting machine. We also invested in an inline polishing machine so that we can process our glass, especially performance glass, and a washing bay to clean the glass.”

A new overhead crane with a suction unit was added so glass could be moved around the factory safely and quickly. All of this new equipment meant that the building had to be expanded but management was more than willing to make the investment so that quality, efficiency and productivity could improve.

Another addition to the glass system is a double-glazing machine.

Double-glazed windows trap air

www.enterprise-africa.net / 21

INDUSTRY FOCUS: MANUFACTURING

between two glass panels reducing heat loss, dimming outside noise, and improving efficiency performance.

The introduction of CT Aluminium’s new machine - being installed in June - will allow the company to cater for its own requirements, avoiding long waiting times.

“It’s big enough to be able to manufacture what we need for ourselves. It’s solely for inhouse use as currently, we are waiting from seven to 10 working days for double-glazing from other suppliers,” says Gareth.

RENEWABLE ENERGY INVESTMENT One of the major hindrances for South Africa’s manufacturing businesses has been security of energy supply.

Manufacturing is an energy intensive industry; it requires a constant supply of electricity, especially as machines take on more and more of the workload. Eskom has faced significant challenges keeping the lights on and load-shedding has returned in 2019.

For CT Aluminium, this is unacceptable

22 / www.enterprise-africa.net

so the company has taken action, investing in a solar panel and wind turbine installation to bring muchneeded power to the factory when the national grid fails.

“Production is important and any interruption to our production can have major impacts on the business,” admits Gareth. “Going down the renewable route, apart from saving money on electricity, offers us consistency and reliability so that we can keep manufacturing regardless of the situation with Eskom.”

Solar panels are already in place on the roof and they contribute to the company’s power system, but when the wind turbines are installed later this year, CT Aluminium will have the potential to be almost completely selfsustainable as Gareth explains.

“It makes a lot of sense to go that way,” he says. “Electricity is expensive wherever you are and, in South Africa specifically, supply has been inconsistent with recent spates of power outage; unfortunately, it doesn’t

look like the situation will be sorted anytime soon. Without electricity, manufacturing is impossible. So, we are currently in the process of having renewable energy installed. We have solar panels on the roof of the building already and by the end of June, we should have four large wind turbines installed as well. On a sunny day with a nice wind, we should be able to go off the grid.

“The solar panels are a small component of the whole installation; the wind turbines will generate the majority of the electricity. There’s not a significant benefit from just solar on its own but when combined with wind turbines, we will start to see the real benefits. The technology is all coming out of Europe and it is an investment into security of supply.”

PROJECT BUSINESS Despite the economic challenges that have plagued the country, and the SADC region, South Africa’s Western Cape – particularly the Cape Town metro area

CT ALUMINIUM

– has been somewhat sheltered when it comes to property development.

According to leading real estate business, Knight Frank SA, coastal cities are among the most desired when it comes to residential property – the area where CT Aluminium is strongest. “The major coastal cities of Cape Town, Port Elizabeth and Durban outperformed inland markets. This trend was driven in part by demand from domestic buyers relocating to the coast from inland cities for lifestyle reasons, with locations in Cape Town and along the Western Cape coast generally attracting the strongest interest,” the report stated.

The city itself is seeing a number of new apartment blocks being developed, there are several retirement villages and gated communities under construction, and new private housing estates are popping up all over Cape Town’s suburbs.

For CT Aluminium, strong relationships with property developers including Rawson, Devmark Construction and GLC Developments make for an exciting project pipeline.

“Right now, the Evergreen Lifestyle Village is a big project for us. It’s an upmarket retirement village which is situated in Val de Vie Estate in the Western Cape. Val de Vie is probably the number one estate in South Africa and it’s a big project where we are busy with Phase 1 which will go on until around October this year. We are also hoping to be awarded Phase 2; so far, it’s looking good, but nothing is guaranteed,” says Gareth.

The entire project consists of around 400 units with Phase 1 consisting of 81 units. “We are responsible for the windows, doors, garden gates, and pergolas for garages and patios.”

An apartment block started in 2018 is nearing completion right now.

“It’s a big project for Rawson Property Developers. We are working on an eight-story building and it was the fourth building we have done with

LEADING MANUFACTURER OF ALUMINIUM SYSTEMS CT Aluminium is a long standing elumatec customer. From humble beginnings to a world class manufacturing plant elumatec is proud to have been part of their journey. Understanding the principal that “only quality can produce quality” their management invested in the latest machine technology supported by innovative software to complement their already quality driven operation. Elumatec wishes them well with their new products and is looking forward to being part of the next chapter of CT Aluminium’s journey.

www.elumatec.com +27 21 5514 420 capetown@elumatec.co.za

www.enterprise-africa.net / 23

INDUSTRY FOCUS: MANUFACTURING

// WITHOUT ELECTRICITY, MANUFACTURING IS IMPOSSIBLE. SO, WE ARE CURRENTLY IN THE PROCESS OF HAVING RENEWABLE ENERGY INSTALLED // Rawson,” Gareth explains.

He says that work with Rawson in 2017 displayed the value of the company’s new technology.

“They were busy with two buildings that went up simultaneously and that was a challenge. The factory goes into overtime and the investment into new machinery starts to really prove its worth. There is absolutely no way would have been able to take on such a job without those investments.”

Rawson and similar clients are perfect partners for CT Aluminium as

24 / www.enterprise-africa.net

the focus is all about quality. All CT Aluminium designs are verified using AAAMSA (Association of Architectural Aluminium Manufacturers of South Africa) specifications and guidelines, and the company’s technology ensures international quality standards are met.

“When Rawson approached us for the first building, the contract was out for tender and we won that contract despite being unknown to them.

We got to refine our methods while working in that first building and since then we have moved forward with the same formula which works very well,” says Gareth.

Because of the number of projects underway in the Western Cape, and the ongoing desire for residential property in the area, CT Aluminium’s expertise is now in high demand.

“Between Evergreen and everything else we have going on, we are very busy. There are a number of upmarket estates going up right now and quite a few of our long-term clients are working in these estates.

“We are hoping to get Phase 2 at Val de Vie, Rawson will be putting up another building later this year and we hope to be involved there, and then there is GLC Developments which is putting up mixed estates and apartment blocks and has some exciting projects in the pipeline,” details Gareth.

STRONG AGAINST COMPETITION CT Aluminium’s product is proven in various environments. It is made in South Africa, for South African conditions. It is made to specific strength standards and this sets the company apart from its competitors who often focus on price over quality.

“We buy all of our profiles and extrusions from WISPECO stockists,” states Gareth. “They are the biggest extruder in Africa and have been around for decades. A few years ago, we decided to only use WISPECO profiles so that we could rely on quality, technical back up and more.

“There are a lot of other suppliers

CT ALUMINIUM

Stockist & supplier of all Crealco Architectural Aluminium Extrusions and related Hardware

Beyond a Stockist

At Bauxite Extrusions and Hardware (Pty) Ltd we pride ourselves in quality and service. We understand the demands of the construction industry and therefore understand the importance of delivering the correct, quality aluminium extrusions and hardware on time. We assist in the following: • Tender Support • Technical support at factory & on site • New extrusion designs & die cutting • Shop drawings We are a proud Crealco Distribution Partner (CDP) and AAAMSA Corporate Member. All of our aluminium extrusions comply with the British Standard of Aluminium Extrusions BS EN 755:2008.

Our Powder Coating Applicators carry the Qualicoat Seaside mark for all exterior and interior architectural aluminium extrusions.

Unit 3, 52 Willow Road, Bellville

of the same-looking systems who import cheaper profiles from China.

They decrease the wall thickness and make things lighter as the price is based on the weight of the extrusion.

When you put together a product like a window or a door, these extrusions look the same but they do not perform the same way and that is a challenge for us. Consumers are price sensitive and are not always aware of what they are buying. It’s difficult to compete against others like that but we choose to not compete on price alone. We offer fantastic service and reputation, and we are backed by quality. At the end of the day, we offer lots of technical expertise, we have an inhouse draughtsman, and we have years of industry knowledge – that goes a long way.”

Because of this focus on quality,

|

021 204 8232

|

Corporate Member

collin@bauxitestockist.co.za

CT Aluminium has outlasted many of its rivals in the industry and is now positioned perfectly for further growth. Gareth even hints at expansion into new markets as the company approaches the end of its second decade in business.

“We are looking at getting into the aluminium shutters market and if that takes off, there is no more space in our building so we would have to run that from a new business premises.”

Whatever challenges the economy is facing, and however the manufacturing sector is performing, CT Aluminium makes it abundantly clear that success is very achievable and, with the correct strategy, ongoing growth can be realised.

“Personally, I feel that things are going to get better in the economy. We are not having discussions about what

we will do if things slow down - we are only talking about growth. You have to keep up the momentum because if you don’t you will lose any advantage,” says Gareth.

“When times are difficult, that is not the time to crawl back into your shell and wait for things to happen. Those are the times to see opportunities and get a step ahead so that when things improve, you are already ahead of the competition.

You have to use the bad times to your advantage to get ahead of the curve,” he concludes.

WWW.CTAL.CO.ZA

www.enterprise-africa.net / 25

PALABORA MINING COMPANY

PMC Lifts Municipal and Provincial Economy PRODUCTION: Manelesi Dumasi

Since our last look at the massive Palabora Copper mine in Limpopo, much progress has been made with Lift II – the ambitious underground expansion project – and with engaging the Phalaborwa community. Manager: External Affairs and Communications, Lydia Radebe talks to Enterprise Africa about development on site. www.enterprise-africa.net / 27

INDUSTRY FOCUS: MINING

//

Now is not an easy time for those involved in mining. Challenging local and global economic conditions, ongoing changes to technology and innovation, quality mineral deposits becoming more difficult to find, and an unending focus on safety and environmental issues make for a difficult sector to navigate.

In South Africa, the situation is particularly concerning. The mining industry was the catalyst behind the growth of the country, but that is changing. GDP growth is not expected to exceed 1.4% in 2019. The economy has not grown significantly for almost a decade. Year-on-year statistics up to the end of March 2019 showed a 1.1% decline in overall mining production and commodity pricing, especially for copper and other base metals, is down.

Earlier this year, a scientific research team from across Europe met in Slovenia to witness a new robotic mining machine, UX-1, head into old flooded mines in search of

28 / www.enterprise-africa.net

valuable minerals. The success of the project has prompted further interest and investment into automated mining equipment with the thought that human jobs could eventually be under threat. Platinum miners, many of whom have been on strike several times in the past three years, are set for further discussions with government to avoid industrial action which would force platinum prices upwards . These are just a few examples of threats and challenges facing modern miners.

But it’s not all doom and gloom.

Globally, mining is still a highly relevant industry, contributing to almost everything we consume every day and employing millions of people. Those that are happy to invest and those that are looking forward to an exciting future are the companies that are leading the industry forward. Despite the challenges, many are strongly positioned for further growth.

In South Africa, one example is Palabora Mining Company (PMC).

Based in Limpopo, next to the Kruger National Park, and close to the border with Mozambique, PMC (also known as Palabora Copper) is the dominant employer of the region, home to a workforce of around 3700 people. The copper mine along with the smelter and refinery complex is a key link in the country’s copper supply chain, and a significant exporter to global markets.

Operating since 1956, PMC (which takes its name from the town where it operates – Phalaborwa) is known globally for copper production and is also a significant producer of magnetite, vermiculite, sulphuric acid, anode slimes and nickel sulphate.

// PALABORA COPPER IS UNDERTAKING A LIFE-OF-MINE EXTENSION PROJECT KNOWN AS THE LIFT II //

PALABORA MINING COMPANY

LIFT II Currently, the mine is going through a life extension programme which will see it go further underground, taking life-of-mine through to 2033. Manager: External Affairs and Communications, Lydia Radebe tells Enterprise Africa more about the ongoing expansion project.

“Palabora Copper is undertaking a life-of-mine extension project known as the Lift II. The project includes the magnetite reclamation and beneficiation study aimed at creating additional revenue from the 250 million-legacy stockpile. The company committed about R700 million to the pre-feasibility study and approximately R10 billion is expected to be spent throughout the development of the project.”

After receiving investment from a

Chinese consortium in 2013, PMC was acquired by new owners and received a welcome flow of capital to restore ailing infrastructure.

“To this end, the Chinese Consortium approved R10.4 billion to extend the life of mine to beyond 2033, R878 million to refurbish the smelter to ensure that Palabora Copper continues to produce copper rod, and R261 million to construct the floatation plant to improve copper recoveries, operational efficiencies and lower operational costs,” she says.

Today, PMC is owned 80% by the consortium consisting of HBIS, Tewoo, General Nice and CADFund through Smart Union Resources South Africa. The balance is jointly owned by the South African government through the Industrial Development Corporation (IDC),

black empowerment consortium, PMC employees and communities.

The owners knew that, with the local and global economic climate combined with the trends in mining, investment was needed.

Without committing to upgrades and overhauls, the business faced mine closure and smelter shut down.

Lift II is helping convert the mining method to a block-cave system. Block-caving sees the ore body undermined so to collapse under its own weight before being removed and treated. It is popular around the world and is especially useful when open-pit mining becomes too deep or expensive and operations must move underground.

After the R9.3 billion was given the go ahead in 2015, a Palabora spokesperson said: “We’ve always

www.enterprise-africa.net / 29

INDUSTRY FOCUS: MINING

// WE’VE ALWAYS BEEN KNOWN AS SOUTH AFRICA’S PRINCIPAL PRODUCER OF REFINED COPPER AND THIS PROJECT ALLOWS US TO EXTEND THAT LEGACY FOR THE NEXT 20 YEARS // been known as South Africa’s principal producer of refined copper and this project allows us to extend that legacy for the next 20 years.”

The 2000m wide pit drops more than 450m into the ground and produces more than 30,000 tons of copper each year.

Currently on site at Palabora, work is underway to sink a new ventilation shaft. The new shaft will reach 1200m down and will be completed after new surface headgear and winders are installed in the first quarter of 2020.

PHALABORWA For more than six decades, the Palabora Copper mine has been the heart of activity in the region.

Mining has become the employment industry of choice for locals, and for commuters who travel from other regions to work for PMC. The company has also championed jobs for local people, work for local SMEs, economic development for Ba-Phalaborwa and Limpopo, and CSI investments that make a difference locally.

PMC has, for several years, been recognised by the Dutch-based International Top Employers Institute which highlights companies that go above and beyond to create sustainable and enjoyable workplaces for employees.

“Our comprehensive independent research revealed that Palabora Mining Company 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,” the Institute said of PMC. Talking about all of the African companies to be included in the 2019 certification, Top Employers Institute CEO, David Plink said: “These companies help enrich the world of work with their outstanding dedication to HR excellence, and because of this, they are recognised as an employer of choice.”

The company’s work in the local community is equally as impressive as Lydia Radebe explains: “Since 2013, the Chinese Consortium – through Palabora Copper – has spent more than R186,500 million in socio-economic development initiatives in Phalaborwa.

“The smelter refurbishment project - smelter retrofit - and construction of the floatation plant are implemented in partnership with China’s Beijing General Research Institute of Mining and Metallurgy (BIGRIMM). In addition to technology transfer, BGRIMM has contractually committed to employ 90% of

unskilled labour and 80% of the semiskilled labour from the Phalaborwa and transfer new skills to Palabora Copper employees who work at the smelter to empower them to operate and maintain the refurbished smelter once completed.”

As a result of the activity on site, there is also much spin-off work that is greatly assisting local companies to grow. Road construction, school renovation, infrastructure development, service provision, and community engagement programmes have all benefitted from PMC’s work.

“In collaboration with the BaPhalaborwa Municipality and other strategic stakeholders PC established a road rehabilitation project which involves tarring of roads and streets in Namakgale,” says Radebe.

“To date, Palabora Copper has collaborated with various

// IN COLLABORATION WITH THE BAPHALABORWA MUNICIPALITY AND OTHER STRATEGIC STAKEHOLDERS PC ESTABLISHED A ROAD REHABILITATION PROJECT WHICH INVOLVES TARRING OF ROADS AND STREETS IN NAMAKGALE //

PHALABORWA FIRE & GENERAL SALES & SERVICE OF ALL TYPES OF FIRST AID FIRE EQUIPMENT, SPRINKLER, DETECTION & ONBOARD FIRE SUPPRESSION SYSTEMS

HEAD OFFICE: 34B NELSON MANDELA STREET, PHALABORWA 1390 T: 015 781 2101 E: FIREGEN@TELKOMSA.NET

30 / www.enterprise-africa.net

PROVIDING QUALITY MINING SERVICES THROUGH COMPETITIVE PRICING AND HIGH-END EXPERTISE Underground Tunnelling and Mining Services

Surface Load & Haul and Ore Re-Handling Solutions

Surface Mobile Ore/ Waste Crushing

Conventional and Mechanised Shotcreting

Surface Mine Drilling Services

Our services are solutions driven. We provide comprehensive mining high end quality services.

Bora is a 100% black owned company with professional services to offer. Bora can offer its services as trial before the client decides on a long-term engagement, and through Bora Mining Services, you get quality service, cost effective pricing and the project is executed timeously.

For more information to all other mining services, contact us at: 6 Alex du Toit Street Phalaborwa 1390 T: +27 15 781 2442

C: +27 73 659 9704 e: admin@springbokgroup.co.za www.boramining.co.za www.springbokgroup.co.za

We love hearing your success stories through Ours - Bora Mining Services (Subsidiary of Springbok Group Pty Ltd)

INDUSTRY FOCUS: MINING

PROUD PARTNERS WITH PALABORA MINING COMPANY

32 / www.enterprise-africa.net

strategic stakeholders, including the Ba-Phalaborwa Municipality to rehabilitate Ackson Malatji road, Zakes Ngwasheng road and Maphutha Malatji road in Namakgale Township in Ba-Phalaborwa Municipality. The amount spent on the rehabilitation of these roads is over R44 million.

“Palabora Copper has constructed nineteen bus shelters around the Ba-Phalaborwa Municipal areas to ensure that bus users wait for busses under the shade considering the heat in Phalaborwa.

“Palabora Copper has renovated Block C of Matome Malatjie High in Maseke Village and painted Lepato High School in Makhushane to ensure that pupils study in a conducive environment,” she adds.

Operationally, PMC is also endeavouring to become as environmentally friendly as possible and improve efficiencies. Copper mining is energy intensive and the company contends with a “forevergrowing, half-a-billion Rand energy

PALABORA MINING COMPANY

bill”. To help curb this situation, an Energy Management Programme and ongoing focus on quality processes are in place.

“The company is a certified ISO 14001 business, that subscribes to world leading practices. Located directly adjacent to the worldrenowned eco-tourism attraction, the Kruger National Park, Palabora Copper coordinates several onsite wildlife management and cultural heritage programmes as part of its ongoing sustainability drive,” says Radebe.

“PMC launched an Energy Management Program in 2012 collaborating with a consulting company resulting in the employment of 12 energy specialists and project managers that would, in conjunction with mining personnel, identify, implement and sustain energy cost saving projects. As a result, 117 initiatives were identified, and following stringent technical and financial adjudication processes, 31 projects were implemented. As a result of their Productivity Approach

over the past five years the company has saved R232 million through initiatives surrounding electricity, coal and liquid fuels, and water savings.”

By the end of July 2017, the Energy Management Program had a net benefit of R173 million after external funding of R28 million was also factored.

“PMC’s Energy Management Program has not only created a sustainable model making us energy efficiency leaders in the mining sector but has also emphasised our standpoint regarding their environmental responsibility,” adds Radebe.

PMC is adapting to changing conditions. The future of mining will be totally different compared to what we know today. With the advent of the Fourth Industrial Revolution, this change will happen perhaps quicker than some may have expected. By extending the life of mine to 2033 at least, PMC has set the foundations for future development. And by investing in the local community that has been so vital to its success over the years, the

company now has loyalty and support from its key stakeholder group.

“The company has written and developed its code of ethics to follow strategic imperatives which include: providing a safe and healthy work environment for all employees and contractor employees; practicing sound environmental management to ensure the sustainable biodiversity of the natural environment within which it operates,” says Radebe.

The Palabora Igneous Complex still has a lot to offer and PMC is ensuring that value is extracted responsibly.

WWW.PALABORA.COM

www.enterprise-africa.net / 33

PORT OF CAPE TOWN

Investment to Position Port

Among SA’s Finest PRODUCTION: Karl Pietersen

Investment into new and existing infrastructure at the Port of Cape Town will see it grow and become a one stop shop for all types of vessel travelling around the southern African coast. Everything from liquid bulk, ship repair and tourism through to ship building, container cargo and human capital is getting attention, and Port Manager Mpumi Dweba-Kwetana is optimistic about what the future holds.

//

In October 2017, Transnet Port Terminals CEO Nozipho Sithole told Enterprise Africa that she was ‘buoyant’ about the future.

“Everybody around me is energetic and keen. When I hear our customers tell us that we are now delivering the world class services that they would expect from port terminals, it is an exciting time.” She said that the SOC was at the forefront of the country’s ‘Operation

34 / www.enterprise-africa.net

Phakisa’ and is actively investing in programmes to revitalise South Africa’s port infrastructure..

18-months on, and in Cape Town specifically, this focus is ongoing.

The Port of Cape Town is perfectly situated at the continent’s southern tip, providing the ideal stopping point for all ships moving between Europe and the western hemisphere and the Middle East and Australia -

especially container vessels.

The port is home to ship repair, bunkering, cargo, storage, and marine services, but Port Manager, Mpumi Dweba-Kwetana is keen to continue upgrading, refurbishing and improving so that the Port of Cape Town is recognised internationally for excellence. Ship repair in particular is important as the port looks to offer a full turn key solution for clients.

INDUSTRY FOCUS: LOGISTICS

ONE STOP SHOP “For Transnet National Ports Authority, ship repair is a very important feature for South Africa so we started looking at how we can position South Africa as a globally competitive country for ship repair,” she tells Enterprise Africa.

“We are already doing ship building in South Africa, we are already doing ship repair in South Africa, so we started looking at whether there is a possibility for us to participate in the market of green ship recycling, and what is the concept really about – is there a possibility that we can host it in our ports around the country.”

In September, Dweba-Kwetana was part of a Transnet NPA team present at Cape Town ICC hosting guests to discuss the requirements of port users in the region. The meeting found that the Port of Cape Town has three critical sectors which require ongoing focus - liquid bulk, ship repair and tourism.

Nozipho Mdawe, Acting Chief Exec at TNPA stated that investment would be made at Cape Town to ensure efficiency.

36 / www.enterprise-africa.net

R950 million will be invested to boost ship repair at the port with the aim of modernising its ageing facilities including the 130-year-old Robinson Dry Dock, the 70-year-old Repair Pier and Sturrock Dry Dock, and the 45-year-old Syncrolift.

Detailed studies aimed at creating additional container capacity through the Cape Town Container Terminal reconfiguration project, which would increase the terminal’s capacity to 1.4m TEU per annum, are being pursued.

“In the next two to three years, you will see a lot of bunkering activity and you will see a lot of ship repair facilities being refurbished and readied,” explains Dweba-Kwetana. “We are looking at infrastructure across all of our docks and we are doing refurbishment and replacement across these facilities so they are able to position us as a ship repair port of choice. We are also focussing more on developing customer added value. We are doing so by ensuring we retain the customers that we have and attracting new customers to call into our waters. It’s very important that we improve our

// IN TERMS OF OUR VALUE PROPOSITION, WE ARE POSITIONING OURSELVES AS A ONE STOP SHOP // operational efficiencies and it is very critical that our infrastructure is in good, efficient running order. We are also focussing more on delivering our capital projects on time.”

The Port of Cape Town is also going through a Craft Replacement Strategy where it hopes to replace two work boats and two tug boats before the end of 2020.

On the tourism side, much progress has been achieved. “Our partnership with the V&A Waterfront for the development of a Cruise Terminal facility at E Berth has created a world-class facility akin to the Property Development facility of the V&A. This project is now at Phase three of its development. We invite industry in Cape Town to engage the V&A in this regard,” Mdawe said.

PORT OF CAPE TOWN

GREEN SHIP RECYCLING Another extremely exciting development comes in the form of a potential Green Ship Recycling centre which would help to position the South African port system as environmentally conscious. The Port of Cape Town is currently undertaking a study to evaluate the attributes of hosting a green ship recycling centre.

“This study will be used by ports all over the country and we will see which port will be suited to green ship recycling. We are pursuing green ship recycling because we are geographically positioned to successfully tap into the market,” says Dweba-Kwetana.

Globally, shipping is one of the most polluting of all industries and any effort to reduce waste from activity is openly welcomed. When a ship reaches the end of its life, often it will end up in a ship graveyard, rotting until it can be scuttled, deep-sea sunk, or broken down. Green ship recycling involves reusing parts of a ship that might otherwise be wasted, ensuring the isolation of those parts of the ship which are harmful and dangerous to both marine and human lives, conserving beaches and marine ecosystem by proper discarding of ship breaking waste, and creating new revenues from traditionally worthless materials. This practice is becoming increasingly popular around the world as human impact on the environment, both land and sea, is increasingly under the spotlight. The main waste product from shipbreaking is steel and aluminium, which can be reused in bars, rods, and other industrial applications.

For ships coming to the end of their life, there is currently few recycling options around the southern African coast, and the Port of Cape Town recognises this gap in the market.

“In terms of our value proposition, we are positioning ourselves as a one stop shop. It is our intention that when ships call into the Port of Cape Town, they are able to get repairs, they can

SEA2CRADLE PROVIDES RESPONSIBLE, CONTROLLED AND CONTAINED SHIP RECYCLING SERVICES

ZERO POLLUTION ZERO ACCIDENTS ZERO INCIDENTS Sea2Cradle is a global expert in green and responsible ship recycling, providing a hassle-free way for ship owners to responsibly have their ship, rig, platform or FPSO recycled in a controlled and contained manner.

The entire process meets the highest standards of Health, Safety and Environment. We only work with yards that fully comply with our standards and those of the EU SRR, Basel Convention, Hong Kong Convention.

SERVICES  INVENTORY HAZARDOUS MATERIALS  AWARENESS & SAFETY TRAINING  MANAGEMENT & OPERATIONS  RECYCLING SUPERVISION  BROKERAGE

RESPONSIBLE SHIP RECYCLING

170 RECYCLING- AND 102 IHM PROJECTS

For a free quotation on our services, please visit our website and complete the form

Sea2Cradle B.V. Scheepmakershaven 59 3011 VD Rotterdam, TheNetherlands Tel. +31653677232 sales@sea2cradle.com www.sea2cradle.com

www.enterprise-africa.net / 37

INDUSTRY FOCUS: LOGISTICS

get bunkers alongside and reduce time unloading and loading cargo, they can have hull cleaning, and they can access a host of other services,” says Dweba-Kwetana.

HUMAN CAPITAL All of this investment and improvement cannot be successful without effective human capital to push the Transnet and Port of Cape Town mantra. In September, a new Maritime Training Centre was opened for TNPA at the Port of Cape Town to develop skills and employability of youths from disadvantaged backgrounds, readying them for careers with Transnet.

Part of Operation Phakisa, the training centre provides a vast range of courses and also helps upskill TNPA employees.

“Our human capital is vital,” says Dweba-Kwetana. “If you want to improve efficiencies, you can have state-of-the-art infrastructure but if you don’t not invest in your human capital then

38 / www.enterprise-africa.net

you are in trouble. That is why we are focussing more on creating employee value by capacitating them, ensuring they are able to service the customer to the best of their ability. We are also ensuring we improve health and safety and improve our relationships with local stakeholders and local companies.

“As an agency of the state we have a responsibility to contribute positively to the economy of the country by providing proper skills development programmes, training artisans and developing engineers to ensure the sustainability of our ports and to stimulate growth of the maritime economy. These skills will ensure that young people can participate meaningfully in the economic development of the country.”

“We are aggressively looking to ensure we satisfy our customers and supply them with an integrated service offering so when they call into the Port of Cape Town, they can get everything they require from a port,” she says.

ANTARCTIC CENTRE Helping to focus international attention on the Port of Cape Town, at the end of 2018 the Department of Environmental Affairs announced plans to build an Antarctic Centre on site. Many countries send research and exploration vessels to Antarctica and often the last stop point is the Port of Cape Town. There is a specific season in the year (Nov-Mar) when these missions are achievable thanks to perfect weather conditions.

In December, the SA Agulhas II departed the Port of Cape Town on an annual Antarctic relief voyage. Many countries hold interest in Antarctica, and the hope is that the port’s new Antarctic centre can help build bridges with other nations. Germany, Norway, Russia, Belgium, Japan, the United Kingdom, India, Sweden, the Netherlands and Finland all travel to Antarctica for research purposes.

“The Port of Cape Town, and Cape Town in general, is being used by most countries when they take on expeditions in Antarctica. Last year, as a port and as Transnet, we were

PORT OF CAPE TOWN

Mpumi Dweba-Ketanna

approached by the Department of Environmental Affairs to help to launch the season – the time when there is daylight and the continent is not in 24/7 darkness. As a part of that we wanted to indicate to the world that Transnet and the DEA are planning to establish an Antarctic base. I know there are countries that are prepared to have their offices here in South Africa and the centre will be used to bring Antarctica to Cape Town. People that call into the Port know that we recently entered into a concession with the V&A Waterfront so that they can build, manage, own and operate a cruise terminal at the Port of Cape Town. By its nature, that positions the Port as a recreation and tourism hub. Part of the activities to complement the V&A Waterfront and the cruise terminal will be the Antarctic Centre. The plans from the DEA and us is to bring awareness from people in the Western Cape, particularly Cape Town, so that they are aware of the centre and the activities that are taking place here. We want to bring in schools and establish a research centre so that

global researchers can make a base in Cape Town. We are also planning to build offices for other counties that use the Port of Cape Town as their departure port before visiting Antarctica,” details Dweba-Kwetana.

DEA Director General Nosipho Ngcaba said: “The centre will accommodate the Antarctic Logistics Network, which will be a virtual network of members that provide advice, assistance and referrals as businesses that understand polar conditions. This will provide a single point of contact for all Antarctica related business enquiries, offering clients effortless connections to private businesses, educational institutions, research bodies and government agencies.”

This investment feeds into the country-wide Operation Phakisa strategy, set out by government to unlock the economic potential of the country’s oceans in order to create economic growth and job opportunities through fast-tracked development.

In the future, more investment looks likely at the Port of Cape Town

after further studies were approved to discover the potential for construction of a desalination plant. Initial suggestions indicate that the Quay 700 area of the port could become home to a 1-3 million litres per day sea water reverse osmosis plant. Currently, the port is appointing consultants to understand the viability of the project with the aim of introducing the system by the end of 2020. After emerging from one of the worst droughts in living memory, Cape Town would undoubtedly welcome another solution to the water issue in the region.

All of the work underway at the Port of Cape Town is a great example of how Transnet is working to ensure that the port is perfectly positioned to meet the needs of an ever-evolving shipping sector and helping to develop the Western Cape into a ship repair, marine industry, sea tourism leader.

WWW.PORTS.CO.ZA/CAPE-TOWN.PHP

www.enterprise-africa.net / 39

TARSUS TECHNOLOGY GROUP

Cloud Simplified From Tarsus PRODUCTION: David Napier

Tarsus Technology Group CEO Miles Crisp talks to Enterprise Africa about the company’s success delivering effective cloud-based solutions to clients across southern Africa.

Alongside its hugely successful distribution business, and a host of other exciting group divisions, the Tarsus On Demand cloud offering is a quickly growing industry-leader.

//

The ICT industry is perhaps one of the fastest changing of all. In the space of just three decades, the internet and advanced computing power has changed the way the world works, and the demand for faster, more efficient, easier to use, and more complex IT hardware and software continues to grow. Staying abreast of all of these changes is almost impossible and those companies operating in the space face a difficult task every day, helping their customers make their investments appropriately.

The whole shift in systems is

40 / www.enterprise-africa.net

becoming known as the Fourth Industrial Revolution – where technology is helping to blur the boundaries between the physical, digital, and biological worlds. Things like artificial intelligence (AI), the Internet of Things (IoT), virtual reality (VR), robotics, 3D printing, quantum computing and more are quickly disrupting every business sector and completely reshaping the customer experience.

Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, was the first to officially recognise the advent of the

Fourth Industrial Revolution and he warned in 2016 that “the changes are so profound that, from the perspective of human history, there has never been a time of greater promise or potential peril”. This goes for both individuals and businesses. Just look at the likes of Nokia – a company which failed to keep up with technological advances and ultimately paid the price, giving up its significant market share to rivals very quickly.

In South Africa, one of the country’s leading IT distribution organisations, Tarsus Technology Group

INDUSTRY FOCUS: TECHNOLOGY

(TTG), is going through a shift which is seeing it incorporate more and more cloud-based services as businesses embrace the IoT, big data and AI. Founded in 1985, TTG has adapted from simple distribution of IT hardware to become an integrated supplier of the highest quality products, solutions and professional services including supply chain optimisation, cloud-based solutions, IT security services, compliant disposal of IT goods and other electronic goods. Made up of five specific divisions, TTG’s expertise is vast and its brand is now among the most trusted in the market.

Tarsus Distribution is the biggest of the Group and surrounds the supply of technology products to wholesalers, retailers, and businesses through the reseller channel.

ON DEMAND CEO Miles Crisp, who has been with Tarsus for the past seven years and oversaw the rebrand from MB Technologies in 2015, says that Tarsus On Demand – the cloud services division - is starting to perform extremely well.

“It’s any of our services, or anywhere we sell, on a subscription or consumption basis - it’s not only cloud-specific services,” he says. “We have aligned ourselves very strongly with Microsoft, mainly because there is a large installed base and they are converting from a perpetual licensing basis very aggressively onto a subscription base for 365. We are partnering with them and we have 35% market share in South Africa on that process in our particular customer definition.

We believe in solutions that are smart−and we put our heart into providing excellent service.

The Pogir Group is an independent personal-service-brokerage for: Personal and Business Insurance, Healthcare, Employee Benefits and Life Financial Planning.

Call: (+27) 11 879 7200 www.pogirgroup.co.za Follow us

42 / www.enterprise-africa.net

FSP 2128

“The other part of it is Microsoft have finally brought large data centres online in South Africa. Because of historical data sovereignty issues, there has been a reluctance to move into the big international cloud service providers such as Microsoft. We are now selling their Azure product and we see enormous growth coming from that because end-users have the assurance that their data is being hosted in their geographical region.

“This is a very important and quickly growing area for us which is more than doubling every year. We expect it to more than double this year and then more than double annually, sustainably for the next few years,” details Crisp.

Microsoft in particular is looking to get customers onto subscription packages where they pay a monthly fee for access to software and only have access to the software for as long as they pay the subscription rather than purchasing a perpetual license. At the end of 2018, Microsoft hiked its license pricing by 10% to speed up the switch to a subscription basis. Microsoft’s popular Office 365 software is now only available through a subscription model and, in most cases, this represents a saving compared to the pricing of a traditional perpetual license.

Microsoft data centres in Cape Town and Johannesburg, officially opened in March 2019, support Azure cloud services. Microsoft expects them to start supporting Office 365 by the third quarter and Dynamics 365 by the fourth quarter. For this reason, Crisp is confident that TTG can benefit.

“Our big volume business, which is mainly hardware across all different categories, is Tarsus Distribution and that is the bulk of the group from a turnover and gross margin perspective. By the end of this year, cloud distribution will comprise just 5% of group revenue but it will comprise much more at a gross margin line, doubling every year,” he says.

TARSUS TECHNOLOGY GROUP

LOGISTICS Another quickly growing part of TTG is its logistics offering. Given the nature of the distribution division, logistics is a key element of the organisation.

Successfully delivering goods to where they need to be has become second nature for Tarsus Distribution, but the company saw the opportunity to expand this area of expertise and this idea has been fruitful.

“Hardware distribution - PCs, printers, screens, peripherals, consumables, anything that requires physical delivery – that is the mothership for us,” says Crisp, commenting on the importance of the division.

“Another very fast-growing part of our business is third party logistics,” he adds. “We use our infrastructure to distribute our customer’s goods as a service - we don’t buy and sell the goods

concerned. We handle all of the logistics for one of the biggest IT retailers in the country and our warehouse becomes their hub. About half of what we move for them is product that we sell them and half is from elsewhere - for example, TV screens, toasters and microwave ovens that they also sell through their retail outlets. That part of our business is growing really fast and it’s thanks to our ability to work off existing infrastructure without additional cost.”

Tarsus is an approved distribution partner for a number of global brands including Acer, OKI, Canon, Dell, Epson, HP, Lenovo, Kaspersky, Samsung and many more. The network and experience that has been built up moving tech products around the region from its portfolio of brands has helped TTG develop a deep understanding of what is required for a

successful logistics operation.

“It’s all contracted and accounted for through our distribution business, we own the warehouse from which we operate and we have control over the actual trucks, so it is a nice logistics service.

“We are working closely with the HiFi Corporation and Incredible Connection of the JD Group and we are bringing on many other customers at the same time. For example, we have handled the IT distribution for FNB on behalf of their service provider, Digital Planet, for several years,” says Crisp.

And while logistics is a growing part of TTG, IT remains at the heart of what it does and the company maintains strong IT expertise so that staff can constantly communicate with clients, always offering the best advice and service.

Continues on page 46

Make the switch to Epson inkjet Replacing a laser printer with an Epson inkjet is an easy decision with benefits that can reduce your overheads, boost productivity and cut energy usage.

Discover the advantage by www.epson.co.za/advantage-inkjet

Advantage Inkjet

98% 96% 99%

less printer intervention* less energy* less waste*

For further information visit www.epson.co.za/advantage-inkjet

www.enterprise-africa.net / 43

Increased cloud email services adoption highlights need for improved cyber resilience Don’t put your eggs in everyone else’s basket Microsoft’s announcement that it has launched its first cloud datacentres in Africa - one in Cape Town, another in Johannesburg - is a cause for celebration among South Africa’s business sector. As we hurtle into the Fourth Industrial Revolution, access to cloud infrastructure will be critical to power artificial intelligence and edge computing innovation. And while only Azure is supported at present, Microsoft plans to soon launch Office365 from these datacentres, offering organisations increased productivity. Amazon and Huawei also have plans to establish local data centres over the next few years.

However, organisations’ tendencies to rely exclusively on single cloud service providers for day-to-day operations have exposed them to undue risk. With services such as Office365, organisations are not only putting all their eggs in one basket: they are putting all their eggs in the same basket that everyone else is putting all their eggs.

The volume of users on cloud-based email services such as Office365 means there is more malware created for these environments. Criminals know they have only one lock to pick to gain access, so they focus their attention on these cloud services because of the potentially large payoff.

As more businesses move email and data to Office365, there’s an increased need to protect against malicious or accidental loss of data. Mimecast’s latest Email Security Risk Assessment (ESRA) report, an aggregated analysis of tests that measure the efficacy of widely used email security systems globally, including Office365, illustrated the scope of the problem. Of the more than 232 million emails inspected, organisations’ existing email security systems missed more than 26 000 malware attachments, 53 000 impersonation attacks and 23 000 dangerous file types.

What You Really Get From Office 365 Microsoft offers certain protection-of-data capabilities as part of its Office365 services, which are designed to protect against data loss caused by its own infrastructure failing. But these services don’t always offer protection against accidental deletion, data corruption, advanced cyberattacks, or malicious users or administrators. These can often lead to downtime which can bring business operations to a standstill. Continuity is essential to any modern organisation’s efforts to maintain productivity but is not always achievable when all business-critical applications run on a single cloud provider’s infrastructure.

It’s not only breaches, human error or technical error that can cause downtime for an organisation. Wellreported and widespread Office365 outages - the most recent of which took place in Europe in mid-January - highlight what can happen when email data becomes unavailable. As more organisations move to Office365, we’re likely to see South Africa featuring on Downdetector’s outage map. Outages pose serious productivity risks to users who rely on Software-as-a-Service monocultures to support their operations. Even more concerning is the possibility that employees will turn to their unsecure personal Gmail or Yahoo Mail accounts when Office365 goes offline. You then have absolutely no control over email activity.

Important data stored on Office365 can also be lost due to accidental or malicious deletion or ransomware.

If your organisation doesn’t have an independent backup in place, and deleted data passes through short term folders such as the Recycle Bin, Deleted Items folders or retention policies without being recovered, it is lost forever.

Interested in seeing how Mimecast can make email safer for YOUR business? Email success@mimecast.com and use the reference #MIMECAST&TARSUS we will be in touch with you and we be in touch to discuss next steps.

rica S o u t h Af cast

me

Mi at rt

pe ex

M ikey M ol

s, c fe s s i

ybe

rs

u ec

rit

y

How Can You Improve Cloud Email Resilience?

To mitigate the risks associated with cloud services, organisations should look to improve their cyber resilience.

An effective cyber resilience strategy should include layered security protection, independent data storage and alternative access routes to key systems like email, for when the worst does occur. The cyber resilience strategy should further include a backup and recovery plan. This was always a priority for organisations when their systems were on premise. The fact that data is now in the cloud does not change this.

South African organisations are arguably a step ahead of their international counterparts in their cyber resilience efforts. The latest research by Mimecast and Vanson Bourne found that 49% of South African organisations have a cyber resilience strategy in place, against a global average of 46.2%. But this still means that half of organisations are yet to have a comprehensive strategy in place.

Recent Osterman Research titled “Why Your Company Needs Third-Party Solutions for Office365”, indicates that organisations globally are starting to supplement the service with third party products to achieve cyber resilience. The study found that nearly one-third of organisations implementing Office365 plan to use thirdparty solutions that will provide improved security, archiving or other capabilities, rather than relying on what is available natively in Office365. In fact, 37% of the typical Office365 budget in 2019 will be spent on a cheaper plan in conjunction with third-party security, archiving and other solutions.

Increased adoption of cloud services is a welcome development in the South African business sector and will support organisations as they strive for greater agility and scalability. But putting all your eggs in one basket – the same basket as everyone else – leaves you exposed to a broad range of risks that can have a debilitating effect on your operations. Using a third-party provider and having an effective cyber resilience strategy provides a safety net and enables organisations to quickly return to standard operations without losing critical data or productivity.

 0861 114 063 / +27 (0) 11 722 3700

 info@mimecast.com

www.mimecast.com

INDUSTRY FOCUS: TECHNOLOGY

Tarsus Technology Group CEO Miles Crisp

Continued from page 43 “We do have technical capabilities.

For example, if things are returned to us, we have the capability to asses those goods and send them back for warranty, repair them, or push them into the second hand market. If you look at what is core to us, it is our logistics capability and our IT capability,” explains Crisp.

STRENGTH IN SA Headquartered in Johannesburg, between Sandton and Midrand, TTG has made its name trading in South Africa.

Its customer base is a largely a South African one, its suppliers (apart from international tech brands) are largely South African, and its knowledge and expertise is South African. But, as many companies do when they reach a certain size, TTG has looked to the continent

46 / www.enterprise-africa.net

for growth. The company is now present in Botswana, Namibia, Zimbabwe, Mozambique, Zambia, and East and West Africa.

Growth and strategy in key markets in East and West Africa has been reviewed recently as TTG looks to optimise its presence. Across Africa, each nation has its own rules, regulations, languages, cultures, and business characteristics, and successfully managing operations across multiple countries can be challenging.

“We don’t move physical goods to East and West Africa, it’s only software at this stage as the supply chain from South Africa into these regions is very complicated. Constant changes in rules and regulation mean we have to remain constantly vigilant and adjust strategy where necessary,” he says.

At the end of 2018, a study compiled

// IF YOU LOOK AT WHAT IS CORE TO US, IT IS OUR LOGISTICS CAPABILITY AND OUR IT CAPABILITY //

by World Wide Worx and Syspro found that South African companies are keen on adopting new technologies and, although slower than some developedcountry counterparts, as speed of advancement continues to increase, more than half of the companies surveyed in the study suggest that they would be interested in adopting new tech (big data, machine learning and blockchain for example) in the future.

Albeit at a slower pace, southern African companies based in neighbouring

INDUSTRY FOCUS: TECHNOLOGY

// OUR CUSTOMER SERVICE IS THE BEST BECAUSE WE HAVE THE ABILITY TO INTEGRATE QUICKLY AND EFFICIENTLY INTO OUR CUSTOMER’S EXISTING SYSTEMS // countries will likely follow suit. This is good news for TTG which, according to Crisp, will continue to look for growth opportunities in southern Africa.

“We are looking at the SADC region for growth,” he says. “Each country has different fortunes and they change quickly. We have seen a lot of growth in Botswana whereas we have seen severe constraints in Namibia because of a slow economy. Mozambique has just had the terrible cyclone which has impacted the country severely and that will result in a slowdown there for some

48 / www.enterprise-africa.net

time. Interestingly, we have seen a lot of growth coming out of Zimbabwe. There is a lot of price control there and they have just had big increases in prices, but the availability of cash comes and goes so we remain cautious there.”

Outside of South Africa, Tarsus’ On Demand division, where software purchases on a subscription basis are sold, provides big opportunities for growth. TTG’s GAAP Point of Sale division, which caters for the hospitality industry, also provides big opportunities and is already active in Zimbabwe, Lesotho, Swaziland, Namibia, Zambia, Malawi, Uganda, Tanzania, and Kenya.

FLAT FUTURE? South Africa’s economic conditions have not encouraged strong growth in recent years, yet TTG has consistently delivered positivity. While the macro economic climate remains depressed and business leaders hunt for certainty, Crisp admits that the market might not be growing. The solution here is to grow market share.

“We’re not seeing growth in the industry as a whole but we have seen growth in market share. What is benefitting us at Tarsus is a change in the business model from actual transactional hardware purchases through to the cloud. We had the big investment recently from Microsoft and no other competitors have effectively matched it. The growth we are seeing comes from that kind of niche. In the actual distribution business growth has been fairly flat and we don’t expect that to change in a big way in the short-term future. There is still a latency around government policy and momentum with the changes that have been promised,” he says.

Tarsus Distribution is already an industry leader; GAAP is the undisputed leader in its sector; Tarsus On Demand is rapidly growing its share; Printacom and Tarsus Dispose-IT are all smaller contributors to overall revenue but both are looking to claim further market share. To achieve this, Crisp says that customer service has to be the best it can be.

TARSUS TECHNOLOGY GROUP

Sit back and relax while our bots take care of your manual, repetitive tasks.

Digital Transformation through RPA Robotic Process Automation (RPA) is the technology that allows computer software, or a “robot” to emulate the actions of a human interacting with desktop applications to execute a business process. An RPA software robot never sleeps, makes zero mistakes and provides exceptional ROI.

In partnership with

For more information call us on +27 11 519 3000 or visit us at www.xpertekcontact.co.za

“We pride ourselves on our customer service but we know our competitors also have impressive offerings,” he says.

“We are confident that we are doing a better job in the On Demandcloud space and the migration of customers and their end users. The assistance we can give to resellers to move their customers on to a cloud basis instead of buying their own licensing is an area where we have invested heavily in expertise.

“We are confident that we are also the leaders in third party logistics and retail specifically. We supply retailers and retail is around a quarter of our business. Our customer service is the best because we have the ability to integrate quickly and efficiently into our customer’s existing systems. The supply chain systems are integrated

with the systems of our customer and that is seamless, without heavy documentation. In those categories, we are confident that our service levels are better and we are on top of our competition,” he adds.

This confidence positions TTG perfectly to help guide clients through the country’s migration into the Fourth Industrial Revolution. TTG has the hardware, it has the software, it has the expertise, it has the logistics, it has the presence, and it has the reputation.

“The world must embrace the Fourth Industrial Revolution because it is a new way of doing business that will be with us for a foreseeable future, and as government and society we should collaborate in creating the enabling environment for entrepreneurs to adapt and adopt the 4IR technologies for the creation of a better life for all,” said the

Department of Trade and Industry’s Deputy Director-General of Special Economic Transformation, Sipho Zikode at the opening of the South African Innovation Summit (SAIS) in Cape Town last year.

Entrepreneurs and business leaders will be forced to choose a technology partner, and TTG sits atop the industry with a positive outlook.

“We are happy that we are running efficiently. We will be watching our costs closely and trying to grow our top line quickly. Business success is all about efficiency, cost management, and managing the market, and that is what we do well,” Crisp concludes.

WWW.TARSUS.CO.ZA

www.enterprise-africa.net / 49

SAFARICOM

Investing in New Capability

to Fuel Future Growth PRODUCTION: David Napier

New stores, new call centres, new 4G coverage, new customers, new products, new innovations, and a new CEO on the horizon – now is an extremely exciting time for Kenya’s Safaricom, one of the leading communication businesses in East Africa.

50 / www.enterprise-africa.net

INDUSTRY FOCUS: TECHNOLOGY

//

Starting life in 1997 as a subsidiary of Telkom Kenya, Safaricom has come a long way in the past two decades. In 2000, when the UK’s Vodafone acquired 40% of Telkom Kenya, Safaricom’s amazing growth story began. With just 26,000 subscribers by 2002, and just KSh 9 billion annual revenue, Safaricom was small but playing in a booming market. After much innovation, tech advancement and huge effort to delight customers, the company now boasts more than 30 million customers, more than 5000 employees, more than 64% market share, and KSh 225 billion revenues.

Owned 40% by Vodafone Kenya, 35% by the Government of Kenya, and 25% by various retail and institutional investors, Safaricom is one of Kenya’s leading communication organisations and holds the vision of ‘empowering a connected society’.

The future is extremely exciting for Safaricom as it pushes for further growth and improved market share in an economy which expanded at its fastest rate in 10 years last year (6.3%), and is expected to continuing growing by around 6% in 2019.

30 MILLION & COUNTING In March, for the first time, Safaricom’s customer base reached more than 30 million. The company claimed that this landmark milestone cemented its position as the leading mobile service provider in Kenya.

// THE GROWING DEMAND FOR OUR SERVICES IN VARIOUS PARTS OF THE COUNTRY IS DRIVEN

BY THE NEED FOR CUSTOMERS TO ADOPT A DIGITAL LIFESTYLE // 52 / www.enterprise-africa.net

// THIS BREAKTHROUGH REFLECTS OUR CUSTOMER’S VOTE OF CONFIDENCE IN OUR PURPOSE OF TRANSFORMING LIVES // “We would like to thank each of our more than 30 million customers for choosing Safaricom as their preferred network which has contributed to our achievement of this remarkable and historic milestone,” said Sylvia Mulinge, Safaricom’s Chief Customer Officer. “This breakthrough reflects our customer’s vote of confidence in our purpose of Transforming Lives. Last year as we turned 18, we announced our brand promise of ‘Nawe Kila Wakati’, where we renewed our commitment to always deliver great value on our network.

“We continue to appreciate our customers through the ‘Ndoto Zetu’ initiative, where we are coming together to make a difference to their communities, inspired by their dreams. Our objective is to make a positive change across more than 500 communities,” added Mulinge.

Safaricom rewarded its loyal clients by dishing our various bonus airtime and data packages in March.

NEW CALL CENTRE Also in March, further excitement came for Safaricom as it opened a new call centre in the western city of Eldoret. With a quickly growing urban population, Eldoret is an important strategic regional hub for Safaricom.

The KSh 900 million new centre created employment for around 800 people and is designed to help improve customer service and efficiency.

Currently, the company receives some 150,000 calls each day and its target is to improve the speed and manner in which these calls are handled.

“We celebrate yet another milestone in line with our strategic business objective of putting the customer first. We want to ensure that, as we continue growing and investing

in technology and in our network, we do not lose sight of our customers and their needs,” said Mulinge.

Uasin Gishu County Governor, Jackson Mandago was present to launch the new facility and he commented: “We welcome Safaricom’s move to set up a Call Centre in Uasin Gishu. Eldoret is a cosmopolitan town and is also one of the fastest growing towns in Kenya making it an attractive destination for businesses. We thank Safaricom for partnering with us to transform the lives of our people.”

Right from the start, Safaricom has been keen on local employment. The company quickly went about hiring 300 interns from various local educational facilities. “This will not only help us to build partnerships with the learning institutions but will also enable us offer the youth work experience and mentorship,” said Mulinge.

Currently, Safaricom is busy rolling out a number of initiatives designed to reduce the number of enquiries flooding into its call centres.

An in-app AI chatbot system named Zuri available through Telegram and Facebook Messenger allows customers to handle basic requests without the need to call, and a new voice biometric system called Jitambulishe allows customers to reset personal information, including their M-PESA pin, without the need to call.

NEW MIGORI STORE Another boost for Kenya’s west came at the beginning of April when Safaricom announced the opening of a new retail store in Migori. The seventh store in the county, and 53rd overall, is aimed at customers who previously had to travel to Kisii County.

“The need to open the retail shop has been driven by the high number of

INDUSTRY FOCUS: TECHNOLOGY

customers who are seeking our services at the care desks. We felt the need to have a space where we can have all our products and services under one roof even as the care desks continue to offer some basic services. We expect to serve an average of 250 customers every day in this new shop,” said Chief Special Projects Officer, Joseph Ogutu.

“The growing demand for our services in various parts of the country is driven by the need for customers

// WE WANT TO ENSURE THAT, AS WE CONTINUE GROWING AND INVESTING IN TECHNOLOGY AND IN OUR NETWORK, WE DO NOT LOSE SIGHT OF OUR CUSTOMERS AND THEIR NEEDS // 54 / www.enterprise-africa.net

to adopt a digital lifestyle, enquiries on DigiFarm, fiber to the Home and Business, E-Commerce and M-PESA services. Part of our strategy is to be able to cater for all these services at the shops and ensure that we offer integrated solutions to all our customers,” said Ogutu.

M-PESA ON ALIEXPRESS In an effort to further enhance customer experience, and to drive more traffic through its own channels, Safaricom announced in March that it had formed a partnership which would allow for the purchase of goods through AliExpress using M-PESA. M-PESA, one of the world’s most popular mobile-phone based money transfer systems, was developed specifically for Safaricom and launched in 2007. It has become world-renowned because of its rapid success, and can now be used, especially by microtraders, to purchase manufacturing goods from China.

Safaricom has teamed with Ant

Financial Services – one of the world’s largest fintech service providers – and together the two organisations will position M-PESA at the checkout stage of a transaction through AliExpress.

“Our more than 21 million customers can now enjoy the safety, reliability and convenience of M-PESA when shopping on AliExpress, a leading, global e-commerce marketplace. This partnership seeks to connect Kenyans to even more business opportunities by enabling them to seamlessly source, purchase and import goods from the world’s leading manufacturer,” said Mulinge.

“We are keen on leveraging the power of mobile technology to transform lives, and we see a great opportunity to do this by connecting people to people, to knowledge and to opportunities. We believe that the mobile phone has the ability to pull down some barriers to trade by enabling global e-commerce, and this partnership with Ant Financial Services marks yet another important milestone

SAFARICOM

Bob Collymore - Safaricom CEO

not just in Safaricom’s efforts to take M-PESA beyond Kenya, but to Kenya’s participation in the international e-commerce marketplace,” she added.

Cashless transactions are on the rise globally, and in Kenya payments through mobile phones are the preferred method. This is just another step in Safaricom’s journey towards taking M-PESA global.

FULIZA In January, the company launched a new M-PESA overdraft facility. In line with the company’s mantra of ‘transforming lives’ it was discovered that millions of transactions are cancelled every day because of a lack of funds in people’s accounts. Usually, the funds are topped up quickly and the transaction is quickly completed, so the new overdraft system helps to solve that problem.

Chief Financial Services Officer, Sitoyo Lopokoiyit says that investment into big data analytics, customer research, and innovative technology

has allowed the company to realise the gap in the market, and fill it with a new product – Fuliza.

“It is a product that we developed together with our partners KCB and CBA, and what it does is provide an overdraft facility with M-PESA that allows customers to complete their transactions,” he says.

“Before we develop a product, we get a lot of customer insights.

We’ve had KCB M-PESA for four years, M-Shwari for seven. Over the years, we have gotten a lot of insight from customers on what they want.

“Safaricom has invested millions of dollars in the technology that we have for M-PESA. We have invested a lot in systems that actually enable us to understand what our customers want.

We also do a lot of research to find out what our customers want, and get a lot of feedback from the other products we have. That is what has enabled us to develop a product that has resonated very well with Kenyans,” he adds.

Fuliza is Swahili, meaning

‘continuously flowing’, coming from the word mfululizo.

“We began testing this product in October last year,” explains Lopokoiyit.

“We went live on January 5 this year after testing the product for three months with 50,000 customers. We had gained a lot of insight after analysing our big data to understand what the customer wants, and we’ve been finetuning the product since then.

“It’s good to see that we hit the right tone in terms of the product with our customers. But the numbers are not the only thing that’s important to us. It’s also about whether we are transforming lives.

“We have received good feedback on how to improve the product, even though customers are generally happy with it. There are certain things that we have started changing based on the feedback that we have been getting, but we are still in the early days. This is a product that will take another 12 months or so to be fully mature, as we get more feedback from our customers

www.enterprise-africa.net / 55

INDUSTRY FOCUS: TECHNOLOGY

and insights from the data we collect.”

The plan for the future is to take Fuliza into the seven other African countries where Vodacom has a M-PESA presence. The overdraft is designed to solve a clear problem in the market, and while Lopokoiyit is keen to point out that it is not a traditional loan, it certainly comes as a lifeline as demonstrated in the phenomenal growth that the product has achieved.

“Fuliza is now another Kenyan buzzword,” says Lopokoiyit.

MORE 4G Safaricom launched its 4G network in 2014 and has every day since looked to improve and widen the now essential service.

In May, it was announced that the company plans to double the number of 4G base station sites to 5000 by March 2020. This will result in 80% country coverage across all major towns and cities.

The company expects to spend

56 / www.enterprise-africa.net

KSh 36 billion on the project which will help bring internet speeds of up to 100 MB per second to a majority of the population.

Outgoing CEO, Bob Collymore made the announcement as he detailed a net income increase of 14.7% for the financial year ending 31 March 2019.

“For a majority of Kenyans, the mobile phone is often the first

and only link to the Internet. By broadening our 4G coverage to almost anyone in the country, we aim to ensure that no one has to miss an opportunity or get left out because of lack of access to affordable, quality, high-speed broadband.”

This, combined with the news of the launch of a 400G network link in February, make for a highly attractive

SAFARICOM

// THE NUMBERS ARE NOT THE ONLY THING THAT’S IMPORTANT TO US. IT’S ALSO ABOUT WHETHER WE ARE TRANSFORMING LIVES. // offering for existing and new customers.

The 400G link enables Safaricom to support increasing video consumption alongside demand for higher video quality from both its home and mobile customers. The aim here is to better serve customers with increasingly connected smart homes. Also, mobile data usage has been doubling year-onyear and the Safaricom fibre network now reaches more than 220,000 homes and 17,000 businesses. The 400G link is supported by Chinese tech giant, Huawei, and will quadruple the company’s capacity to carry internet traffic over 500 kilometres. The link will achieve a speed of up to 400 Gigabits per second, an upgrade from the previous connection which offered speeds of 100 Gbps.

While voice services and M-PESA

still make up the largest contributions to revenue, Collymore was clear that diversification of a quality portfolio will help to drive growth in the future.

“We are pleased with the strong results we have delivered for the year, building on our long track record of delivering relevant products and putting the customer first. We foresee continued growth in the future,” said Collymore.

“Looking ahead, the business will sustain its momentum of investing in the quality of our service and diversification of our revenue portfolio to ensure sustained returns to shareholders.”

But, with Collymore to step down following a period of extended medical leave in 2017/18, the challenge for Safaricom is now to quickly appoint a successor to help lead East Africa’s

most profitable company continue to thrive. Some have called for the next company leader to be Kenyan, but Collymore has said getting the right person is the most important thing.

The company will move forward whatever the situation in the boardroom, and continuing to solve problems and transform lives will remain at the core of everything Safaricom does. Perfectly positioned to grow further in the future, now is an exciting time for the company “Kenya is a hotbed of innovation and technology and there is no other place in Africa that is as vibrant as Kenya in FinTech,” says Lopokoiyit – and we should expect to see Safaricom exports like M-PESA more and more around Africa.

WWW.SAFARICOM.CO.KE

www.enterprise-africa.net / 57

ZAMBEEF

Retail Roll Out

Boosts Award Winning Zambeef PRODUCTION: Manelesi Dumasi

Zambeef is a forever-changing business that now sees itself moving from being just a farming operation to becoming a fully vertically integrated agri food retail organisation. With activity in Nigeria and Ghana, this listed Zambian powerhouse is showing how important and exciting African businesses can become. www.enterprise-africa.net / 59

INDUSTRY FOCUS: AGRICULTURE

//

Landlocked between the DRC, Tanzania, Malawi, Mozambique, Zimbabwe, Namibia, Botswana and Angola, Zambia is an exporter but battles with transportation to get its products to market. The economy is centred around copper mining and agriculture and trades products by road with neighbouring African countries, sending some mineral assets to ports of Beira, Maputo, Durban, Dar es Salam and Luanda for global export.

Across almost all of Zambia, land is prime for agriculture. The humid subtropical climate is perfect for maize, and the crop counts as one of the country’s most important exports.

Agriculture is the dominant industry for employment and, with a population of around 17 million spanning some 750,000 km2, it makes a lot of sense.

One of the leading agricultural firms in the country is Zambeef.

Founded in 1994 by Carl Irwin, Zambeef has grown to become an integral vertically integrated supplier in Zambia’s food market. Zambeef is involved in the production, processing, distribution

60 / www.enterprise-africa.net

and retailing of beef, chicken, pork, milk, eggs, dairy products, fish, flour and stock feed. The Group also has large cereal row cropping operations (principally maize, soya beans and wheat), with almost 8000 hectares of row crops under irrigation, which are planted twice a year and a further 8500 hectares of rain-fed/dry-land crops available for planting each year. The company is now home to more than 7500 employees and has exposure in Ghana and Nigeria.

Today, the company is listed on stock exchanges in Lusaka and London and receives global attention for its work. An active corporate community citizen, Zambeef contributes to the regional economies in which it operates.

After listing on the stock exchange in 2003, Zambeef has been firmly fixed on the path of growth. The National Pension Scheme Authority (NAPSA) is one of the largest shareholders meaning every working Zambian indirectly holds a stake in the company’s success. In 2016, the CDC Group invested US$65 million into Zambeef, resulting in a 17.5% ownership stake. This saw the

company’s listing on the AIM in London improve dramatically, helping the company to expand its operations and roll out increased levels of service across the country.

Overall, the company’s activity on the stock exchange has been positive and senior management remain committed to growth through this medium.

“Listing on the stock exchange was one of the best business decisions we ever made at Zambeef,” said outgoingChief Executive Officer Francis Grogan.

“It enabled us to raise the capital we needed to expand, broadened our shareholder base, and ensures that we maintain the discipline of good corporate governance.”

Grogan will end his tenure as CEO at the end of this year and will be succeeded by Walter Roodt, who has served as Deputy Managing Director among other positions and has been present within the company since 2008.

He was promoted to joint-CEO, working alongside Grogan for the remainder of his time with Zambeef.

“Walter’s appointment as an

ZAMBEEF

Executive Director is in line with the Group’s well-considered succession plan and is validation of his hard work and commitment to the Group over the past 11 years. The Board looks forward to working closely with Walter in his new role,” said Group Chairman Dr Jacob Mwanza.

CORPORATE GOVERNANCE In February, the company was awarded for its excellence in corporate governance. The Lusaka Stock Exchange hosts the annual awards ceremony to highlight listed companies that demonstrate strong adherence to its code regarding corporate governance which measures transparency, accountability, responsibility and fairness. Zambeef has claimed the Corporate Governance Award in 2007, 2008 and 2019.

“Zambeef believes in positive corporate governance,” commented Mwanza. “We want our employees happy, and to operate within the law.

As a public company we are regulated by the stock exchange both in London and Lusaka. Our focus is to ensure we are compliant with all the rules and regulations. We want to make sure we don’t just make a profit but also contribute to development, food security and to Zambia’s economic growth.”

Mwanza was present to collect the award alongside outgoing CEO Francis Grogan, Head of Corporate Affairs and General Manager Retailing Felix Lupindula and other members of the senior management team.

This success was followed up in April when Zambeef announced that its new Kitwe Processing Plant had been brought online. Designed to improve efficiencies

and economies of scale in serving the Northern parts of the country, the Kitwe Processing Plant will ease pressure on the existing distribution centre at Huntley Farm in Chisamba.

“The market for Zambeef products is growing and so is the company.

We aim to give added value to our customers with the one-stop shop concept in the form of our macro outlets – which have been well received. But beyond the shopfront we are investing heavily in the processes, the machinery and the facilities that will ultimately enhance the customer experience and value offered by Zambeef,” said Felix Lupindula.

“Our goal is to continue providing our customers with affordable, accessible, available and quality products that can rival any other product on the market locally or

www.enterprise-africa.net / 61

INDUSTRY FOCUS: AGRICULTURE

// OUR GOAL IS TO CONTINUE PROVIDING OUR CUSTOMERS WITH AFFORDABLE, ACCESSIBLE, AVAILABLE AND QUALITY PRODUCTS THAT CAN RIVAL ANY OTHER PRODUCT ON THE MARKET LOCALLY OR OTHERWISE // otherwise. The plant employs a first in, first out (FIFO) method together with other quality management practices to ensure consistent and efficient product and service delivery,” added Lupindula.

The plant is an exciting development for the company and is home to a number of new facilities including a weighbridge, high-capacity cold-rooms, increased storage and a

62 / www.enterprise-africa.net

new employee canteen.

Following the expansion of the company’s retail activity in the region, the new centre became clearly necessary as Zambeef looks to further cement its foothold in the country’s food retail market. New outlets in Kasumbalesa, Solwezi, Kasama, Wusakile, Ndola City Centre (NCC), Nkana East and Mansa have all opened recently and are designed around Zambeef’s macro store blueprint, consisting of butchery, Novatek Animal Feed and Zamhatch sales outlets as well as outlets for industrial footwear and protective clothing.

Huntley Farm will remain the company’s core distribution centre but the Kitwe Processing Plant – the first on the Copperbelt – will act as a decentralised hub for the towns in the northern regions.

TASTY RESULTS In 2016, Zambeef continued to act as one of the country’s largest employers, largest contributors of tax, and fuelled as much as 1% of the country’s GDP.

With the ongoing growth of the business, and a continued roll out of the company’s network, 2018’s financial results were welcomed as robust.

For the year ending September 2018 (in US$), revenue improved by 9.6% and gross profit was up 15.3%.

Operating profit jumped by 31%.

“Zambia’s economy remained relatively stable for the majority of the financial year to September 30, 2018.

However, September saw the Kwacha suffer significant depreciation as economic conditions weakened amid wide concerns for emerging markets.

Notwithstanding this downturn the Group’s results were encouraging, with revenue in Zambian Kwacha increasing by 14.2% year-on-year. The Group experienced robust volume and margin growth in the Retail and Cold Chain Food Products division and Stockfeed division, which together underpinned revenue growth,” detailed Dr Mwanza.

“Despite these temporary macro concerns, which are now abating, the new financial year has started well for Zambeef with continued revenue,

ZAMBEEF

margin and volume growth. The Group expects to continue to grow US$ earnings in 2019, and generate positive free cash in the financial year.

It remains committed to employing EBITDA to fund working capital, capital expenditure for financially viable projects, and to service debt and, as a result, the Group does not intend to raise further debt in the near future. In line with its stated strategic objectives, it plans to continue to reduce its debt levels in the medium term, which will help to mitigate foreign exchange and interest rate risk exposures.”

// WE WANT TO MAKE SURE WE DON’T JUST MAKE A PROFIT BUT ALSO CONTRIBUTE TO DEVELOPMENT, FOOD SECURITY AND TO ZAMBIA’S ECONOMIC GROWTH //

Grogan agreed, saying: “The Group has ended the financial year with a renewed sense of optimism.

The continued dedication of our management and staff, supported by a strong Board, remain key to this as we progress into an exciting new phase of growth.”

At the end of March, Zambeef’s Half Year Trading Update highlighted that macro-economic concerns remained prominent for the company. The Retailing and Cold Chain Food Products Division saw revenue grow but margins come under pressure.

“Whilst it is pleasing to report that the Group continues to grow revenue in the Retailing and Cold Chain Food Products, it is disappointing to report that volumes are expected to be similar to the prior period, and margins have come under pressure in difficult market conditions as mentioned above. The depreciation of the Kwacha has driven up input costs which we were unable to fully pass on to the consumer in the first six months. Management have noted that Zambeef has started to see

margin improvements towards the end of Q2, and expects margins to gradually improve in the second half of the year,” the company stated.

But, with more capital expenditure and investment planned for 2019, now is the time for all at Zambeef to be excited. The company is further engraining itself into Zambian society with the roll out of its retail network and, as its non-core business assets are divested, the company will remain a preeminent vertical food and agri business.

“Proudly Zambian coupled with Feeding the Nation are two very important mottos for us,” says Lupindula, as Zambeef makes the most of a growing local market and unrivalled local agricultural knowledge.

WWW.ZAMBEEFPLC.COM

www.enterprise-africa.net / 63

FRESHMARK

Truly the Pick of

the Bunch PRODUCTION: William Denstone

The fruit and vegetable procurement, buying and distribution arm of Shoprite South Africa’s largest retailer – Freshmark, supplies fresh produce to the Group’s stores both within South Africa and across the majority of its outlets throughout the continent. With new varieties coming thick and fast and old favourites harvesting ever earlier, these are bountiful times for this key industry player. www.enterprise-africa.net / 65

INDUSTRY FOCUS: AGRICULTURE

//

Freshmark is one of the largest purchasers of fresh produce in Africa today for South Africa’s largest retailer, sourcing the majority of the Shoprite Group’s requirements directly from local producers. This allows it to fulfil its longstanding promise of the utmost freshness to the customer, while also reducing transport and packaging costs.

Much effort has been, and continues to be, put into establishing an extensive local network of suppliers, an objective which is being mimicked across the continent as the Shoprite Group expands further into Africa.

Freshmark prices itself on maintaining direct relationships

66 / www.enterprise-africa.net

with farmers, cutting out the ‘middle man’ traditionally associated with this industry, and has established growing programs with each in order to discuss the quality and quantity of the products which are harvested every year.

Alongside the commitment to supporting local goods, at times of need Freshmark is also positioned to import fruit and vegetables to allow it to ensure both a wider variety and that all-important continuity of traditionally seasonal fresh produce, as well as to introduce specialty fruit and vegetables to both the local and international markets.

Freshmark operates its own network of distribution centres and negotiates production contracts with

// THE INTRODUCTION OF NEW VARIETIES HAS LED TO MORE CHOICES // over 1114 growers to see some 95% of its fresh produce sought from the local environs. It has long played a key role in equipping emerging farmers with the knowledge and skills to produce and meet international GLOBALG.A.P. standards, which guarantee safe and sustainable agricultural production to benefit farmers, retailers and consumers throughout the world.

NEW VARIETIES One impact of Freshmark’s stringent attention to the latest and most cutting-edge international research is the regularity with which it is then able to bring new and improved varietals and products to the Group’s markets.

While South Africa may be renowned as one of the world’s top table grape exporters, offering a broad selection of new and improved varieties to markets in Europe, North America and Asia, many of its new cultivars are now also proving popular among consumers in the domestic market, with this expansion of grapes’ appeal providing a welcome boost to the category.

Although it is taking longer for many new varieties to become household names in South Africa, there are some notable changes taking place on the domestic table grape market. Tania Van Der Merwe, Freshmark’s National Procurement Buyer of Stone fruit, Grapes and Exotic Fruit, explained how increasing the number of proprietary varieties is positively impacting sales and helping to extend the sales season for domestically-grown fruit.

“We have been experiencing a better eating quality and larger berry size,” she explained. “Meanwhile,

L

A V L N L EY IO WING WITH O R G

Freshmark Sweet potatoes the most under-estimated nutritional vegetable

PROUD PRODUCER OF:

KOBUS: +27 82 567 1902 NICO: +27 63 681 7127 EMAIL: admin@lionvalley.co.za

INDUSTRY FOCUS: AGRICULTURE

better late varieties have given us the opportunity to achieve a longer shelf life that is able to extend our season by approximately six weeks.

“We have also become more accurate with our storage programs,” Van Der Merwe continued, “which is sorely needed for late varieties.

“The introduction of new varieties has led to more choices and has changed our specifications. We’re still competing with the export market, but there are more newer varieties available for our local market.

“Quality remains key for any consumer, and therefore suppliers need to ensure shelf life,” Van Der Merwe said of the key factors in growing the sector further. “They also need to ensure consistent harvests annually. The worst for retail is to market a new line for a season and then have limited volumes the next season.”

AN APPLE FIRST Resulting from an exclusive agreement between Freshmark/ Checkers and TopFruit, the South African licensee for New Zealandbased T&G Global, JAZZ™ has arrived as the first fully-branded club variety apple on South African shelves for which Checkers has the exclusivity rights for the next three years.

“Checkers are very committed to this brand and have made sure that all stores that stock the apples have eye-catching point of sale material and recipe cards in stores,” says Liza Matthews, marketing manager at TopFruit.

“JAZZ™ apples are sold in fullybranded packaging which is a first for a branded apple in South Africa.

Normally all branded apples are sold in the supermarket’s own look and feel bags with only the brand’s logo visible on the bag. A consumer marketing campaign has been developed to promote the brand and drive sales during the period that the apples are available.”

According to TopFruit, JAZZ™ apples were first born in New Zealand orchards following a union of Royal Gala and Braeburn varieties.

“Seventeen years later JAZZ™ apples have become a global favourite, being grown in thirteen countries under a closely controlled quality growing programme and sold in 45 countries.

“The JAZZ™ brand’s success can be attributed to the consistency and uniqueness of the JAZZ™ apple eating experience and its durability and versatility,” the company said.

PEAR POTENTIAL The promise noted two years ago now of the blushed pear Celina has finally borne fruit, in the form of the fruit’s first harvest in South Africa.

This comes as a major lift to the industry and the export of the new variety will play an important future role in the early season.

68 / www.enterprise-africa.net

FRESHMARK

// QUALITY REMAINS KEY FOR ANY CONSUMER // Celina will, for the first time in nearly 20 years, offer a viable opportunity for the South African industry to offer the world’s markets a range of blushed pears from early until late season. The first commercial volumes of Celina were harvested this season in various areas, and offered to consumers in South Africa through Freshmark and the Shoprite Checkers Group.

“Celina is the earliest of a range of blushed varieties that South African growers are offering the world’s markets,” says Stargrow’s Andries van der Westhuizen. “It has really been in high demand this year and performed very well in terms of prices.”

“It is the grower’s best friend, because it delivers an excellent yield, the trees come into production fairly early and it eats very well,” concluded

Stargrow’s chairman Michiel Prins.

“We are delighted to have it as part of our portfolio. The early promise is certainly there to be one of those varieties which could help shape a new South African pear sector both in terms of returns to the farm and market performance.”

WWW.SHOPRITEHOLDINGS.CO.ZA

www.enterprise-africa.net / 69

SANTAM NAMIBIA

Insurance That

Adds Value PRODUCTION: David Napier

Partnering with an insurance provider that is modern, innovative and forward-thinking but comes with a wealth of industry experience is vital for both businesses and individuals.

In Namibia, the leader in this space is Santam Namibia. By focussing on strong people development strategies, this business is delighting customers and driving positive results.

//

When the economy is slow, everything is more difficult.

Confidence is knocked, investment is quick to dry up, and a focus on cost management is rapidly installed. Even thriving businesses and individuals recognise the threats and

begin to re-evaluate their strategy.

While a slow economy does not mean that business has to stop, it certainly makes things harder.

In Namibia, one of the world’s least populated countries, the economic climate has left a lot to be desired in

recent years. In April, it was announced that the economy had been shrinking to 10 consecutive quarters. Importing electricity from Eskom in South Africa, and desperately seeking private investment in its energy sector, Namibia faces many challenges.

www.enterprise-africa.net / 71

INDUSTRY FOCUS: FINANCE

// WE HAVE A BROAD AND SOPHISTICATED MULTI PRODUCT AND MULTICHANNEL DISTRIBUTION OFFERING THAT PROVIDES OUR CLIENTS WITH COMPREHENSIVE COVER THROUGH A WIDE RANGE OF VALUE-ADD PRODUCTS // Central figures from both the public and private sector have weighed in and called for government and business to work together to relieve the situation and encourage economic recovery.

President Hage Geingob has announced a new high-level panel designed to plan economic reform, and leaders from the banking sector have called for stability and certainty to ensure a sustainable recovery even though many admit it will likely take a long time.

Against this backdrop, Namibia’s businesses have struggled. Even the big corporates have not managed to come through unscathed. But for those with a solid footing, and for those which are innovating and supply products and services that customers really need, there is light at the end of the tunnel.

Take Santam Namibia for example.

The local arm of the international insurance business based in Johannesburg, Santam Namibia is the country’s largest and most trusted names in the short-term insurance industry.

With a market share of more than 30%, Santam Namibia has been operating since 1956. Listed on the Namibia Stock Exchange (NSX), this powerhouse insurance business has become a reliable partner for many in Namibia and has developed a strategy to overcome economic peaks and troughs.

“Over the years, Santam has been able to continually reposition and improve itself in the changing business environment, to employ the best people, to provide a relevant offering to clients, and to optimise systems to drive efficiency. This is and will remain at the core of our value proposition,” the company says.

72 / www.enterprise-africa.net

But insurance – which is still a grudge purchase in many people’s eyes – is often much more difficult to sell when times are tough. It is often the first area of the budget to be investigated when belts are tightened and cheaper options are sought to manage costs.

Santam Namibia navigates this environment by offering a diverse product portfolio to different market segments.

“Santam has managed to build a diverse group that encompasses four business units and an international investment portfolio,” the company says.

“This diversity, coupled with a worldclass scientific underwriting capability, enables the group to steer its way through the ups and downs of the typical underwriting cycle.”

Within this portfolio, commercial, personal and niche insurance requirements are all catered for.

On the personal side, car, buildings, contents and legal products are delivered.

For commercial, business, guesthouse, tourism, leisure and entertainment products are offered; and for niche needs, marine, aviation and corporate property risk is all catered for.

“For commercial insurance, we offer a business portfolio in South Africa and Namibia that serves small to large enterprises by providing flexible and unique commercial insurance solutions that are tailored to suit the needs of entrepreneurs and businesses. We follow a client-centric approach by rating commercial risks according to tailored risk profiles.

“For personal insurance, we have a broad and sophisticated multi product and multichannel distribution offering that provides our clients with comprehensive cover through a wide

range of value-add products. Our policies offer unique benefits to their target segment and can be tailored through flexible excess structures and policy benefits to suit each client’s needs,” the company says.

“For niche insurance, we offer solutions suited for this market’s complex and unique risks. Underwriting these classes requires skilled resources to assess and quantify the risk and exposure, and is evaluated through our underwriting managers and business units. Our strategic intent is to provide specialist products that are client-driven and supported by bespoke underwriting criteria to manage and quantify their risks.”

Insurance is ultimately a people business and people sell insurance, manage insurance and use insurance – without people you have no customers, and without good people inside the business, you cannot develop relationships with customers.

For its entire life in Namibia, Santam has focussed on recruiting, developing, and retaining the best people. With a population of just over 2.5 million but an unemployment rate of more than 25%, skills are not easy to come by. Most employment in Namibia comes from agriculture, mining, infrastructure and tourism so when you find employees for roles in insurance, and you invest in them, it is important to keep them.

“Our employees enable us to provide good client service and to manage our risk pool effectively. Given the reality of a skills shortage in the general insurance industry, there is an increasing need to build and retain a productive and diverse workforce that can respond to changing ways of doing business,” the company explains.

// FOR NICHE INSURANCE, WE OFFER SOLUTIONS SUITED FOR THIS MARKET’S COMPLEX AND UNIQUE RISKS //

Get real insurance FNB Insurance Brokers can offer you far more than just advice. As an experienced and well-established insurance provider, we can offer you insurance solutions to preserve your wealth by protecting your personal assets, backed by excellent service and expert advice.

Protecting your assets and the security of your business should be an important aspect of your business' overall financial plan, and we want to help you make the best choices.

Every life has a value and is worth protecting. We also do Life Planning, because‌ no one knows what the future holds.

Our dedicated team of experts will take the time to understand your needs, guide you on the insurance products best suited to you, and negotiate a premium based on your unique profile for both your personal and your business needs.

Visit www.fnbnamibia.com.na/insurance or contact us on 0 61 299 8233.

INDUSTRY FOCUS: FINANCE

The wider Santam Group has, for several years, been named as a Top Employer for the African continent.

Organised by the Netherlandsbased Top Employers Institute, the commendation is given to those that nurture and advance employees.

“Our comprehensive independent research revealed that Santam Ltd 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,” said the Top Employers Institute.

Being labelled a Top Employer for 2019 for the fourth year running, Santam sits proudly among the continent’s elite.

“We believe that the 2019 Certified organisations demonstrate exceptional employee conditions and encourage the development of these practices by putting their people first. These

74 / www.enterprise-africa.net

companies help enrich the world of work with their outstanding dedication to HR excellence, and because of this, they are recognised as an employer of choice,” said Top Employers Institute CEO David Plink.

Billy Elliott, Top Employers Institute Manager: Africa agreed, saying: “We have seen a progression of HR in Africa over the last few years, and it is our role to empower and advance people strategies across the world.

We are driven not just to certify but to benchmark and connect outstanding employers around the world.”

For Santam Namibia, stringent and productive HR is not a choice, it’s a necessity. “Scarce skills development is an issue that requires action at national, industry and company level. Only when contributing on all three levels will companies benefit and employees and government be able to achieve success.”

By installing a culture surrounding the values of excellence, humanity, integrity, innovation and passion,

Santam Namibia believes it can attract, develop and retain first class employees that help to drive results for the company and for customers.

In 2018, results for the Santam Group were largely positive despite a challenging economic picture across southern Africa.

Up to the year ending 31 December 2018, Santam realised Growth of 7% in conventional insurance gross written premiums to R27.7bn, conventional insurance underwriting margin of 9.2%, and return on shareholders’ funds of 31.8%.

Compared to 2017, these results were warmly welcomed.

Group CEO, Lizé Lambrechts said: “The 2019 period will be the final year of our Vision 2020 strategy. We will use the period to define our new strategy for 2020 and beyond. Our strengths remain our diversified footprint, people, capital strength, recognised brand, technical expertise and ability to grow business flows outside of South Africa.”

SANTAM NAMIBIA

Going forward, Santam is perfectly positioned to thrive in Namibia.

Already recognised as an industry leader, the company is prepared to grow as the industry booms. Last year, Fitch Solutions, a market research and analysis buisness said that Namibian insurance is ready to develop. “We

// AT SANTAM, WE BELIEVE IN A SIMPLE PRINCIPLE - THAT INSURANCE IS SOMETHING THAT SHOULD ADD VALUE AND PEACE OF MIND, NOT QUESTIONS, UNCERTAINTY, PARAMETERS OR EXCUSES //

envisage stable growth in the overall gross premiums in 2019 and over the five years to 2023. The overall outlook for the Namibia insurance industry remains stable with a series of drivers supporting our positive forecast. The macroeconomic headline growth will continue to support a steady uptick in premiums and rising consumer and investor sentiment along with economic modernisation and infrastructure investments will bode well for the commercial sector requirements.”

PWC agreed highlight Namibia as a nation with particularly low insurance penetration. saying: “Africa’s insurance industry is largely underdeveloped, and insurance penetration levels are very low by global standards.

“The demographics of the population and their changing behaviours in a world dominated by connected devices, the internet, and social media, all combine to make access easier and increase penetration levels.

“Insurers surveyed in South Africa

and other African markets expect decent increases in both life and non-life gross premiums over the next three years.

“New multichannel approaches and product design based on knowledge of customers and their needs are required.”

For Santam, this burgeoning industry has been home in Namibia for more than six decades. The future looks bright and, despite economic drawbacks, as long as Santam can do what it always has, then there is no reason why this successful organisation cannot continue to dominate while furthering its industry-leading position.

“At Santam, we believe in a simple principle - that insurance is something that should add value and peace of mind, not questions, uncertainty, parameters or excuses,” the company ensures.

WWW.SANTAM.NA

www.enterprise-africa.net / 75

PORTLAND

Portland Shows Strength

Amidst Unstable Industry Backdrop PRODUCTION: David Napier

The family-run Portland Quarry, Readymix and Hollowcore business in the Western Cape is expanding its offering by improving its products and growing its reach around the province. In a challenging construction industry, this 30-year old company is a true sign of strength. General Manager Nicol Heyns talks to Enterprise Africa about Portland’s ongoing development. www.enterprise-africa.net / 77

INDUSTRY FOCUS: CONSTRUCTION

Heyns Family at Portland’s 30 Year Celebration

// WE WILL ALWAYS TRY TO BE THE LEADER IN EVERYTHING THAT WE DO //

//

South Africa’s construction industry remains on shaky ground. Research from FNB and the Bureau for Economic Research said in March that confidence in the industry is at its lowest point in more than 20 years, with more than 90% of respondents taking part in a quarterly survey unsatisfied with business conditions.

High national debt, little spending on infrastructure and a depressed economy have created what some industry commentators have labelled a ‘soft and crumbly sector’ where even some of the biggest names have not been able to weather the storm.

78 / www.enterprise-africa.net

Since 2010, and the FIFA World Cup projects which flooded the industry with work, construction has slumped as major government infrastructure projects have either dried up or quickly slowed down.

A rebalancing of the industry has taken place and those companies involved have had to adapt to embrace a new reality.

President Ramaphosa has vowed to attract new foreign and local investment to the country, and in March he said that billions of Rand was already flowing into the market after just a few months of his investment drive.

In the construction industry,

where projects usually last months and years, stability and market certainty are vital. Unfortunately for South Africa, where stability and certainty are not easy to come by, these vital elements have not been delivered.

But there are pockets of positivity and groups who look to the future with vigour, seeing opportunities rather than threats. This is certainly the case at Portland, the Western Cape-based quarry, readymix and hollowcore business that supplies into the regional construction, building and infrastructure industries.

“The economy is the way it is, and it makes it tough to come

PORTLAND

through unscathed. You still have to run the business and you can’t just refuse to supply everyone. You have to negotiate the best terms with your clients and ensure you protect your business,” General Manager Nicol Heyns tells Enterprise Africa.

Having grown impressively over the past three decades, this family business has created employment for almost 200 people. Its products have been involved in some of the Western Cape’s most important construction projects, and the Heyns family is refusing to accept negativity in its business. Portland owns a large Malmesbury Hornfels quarry north of Cape Town, and readymix and hollowcore factories. After growing a strong client base and an excellent reputation, Portland is looking to expand across all areas.

DIGGING DEEP “Looking at future growth, we have done a lot of research across all areas of the business. We want to expand in everything that we do,” says Heyns.

“The Western Cape is booming.

The bigger construction companies and civil companies are trying to expand their footprint into the Western Cape because there is a lot of opportunity here. There is definitely enough opportunity here for Portland for the next 10-20 years.”

Increasing quarry tonnage, installing new readymix plants, growing the number of hollowcore products sold, and developing the company’s range of precast concrete products are all targets for the GM. The improvement of products is also on his radar, helping to further Portland’s reputation for quality.

“The target for the tonnage from the quarry went up a lot of the past two years but that is because the market demanded that from us. We had to bring in mobile crushers to help process the extra materials. It’s the same with readymix – we have done research about the different areas that could benefit from a new plant and if the market demands that we expand, we will certainly do so.

“With Hollowcore, we are currently expanding. We are not putting up extra factory space, but we are making some internal changes by looking at our curing methods to up our quantities by 30%.

“We want to become superior in what we do. At the quarry, we are looking at putting up wash plants so that we can deliver a better stone – that will help us grow our margins.”

SMART DECISIONS The Volvo H-Series wheeled loaders are constantly taking the kind of smart decisions that we know you’d appreciate. Every working moment, the intelligent systems on the L150H, L180H and L220H are making subtle adjustments that minimize fuel consumption and wear and tear on components, leaving the operator free to concentrate on doing the job quickly and productively. All of which should help you to make your next smart decision...

Babcock International Group www.babcock.co.za Authorised dealer for Volvo Construction Equipment

L150H_144x100_EnterpriseAfrica_PortlandHoldings.indd 1

2019/05/17 13:42

www.enterprise-africa.net / 79

INDUSTRY FOCUS: CONSTRUCTION

// OUR MAIN FOCUS IS TO IMPROVE OUR QUALITY AND IMPROVE OUR CLIENT SATISFACTION. THIS WILL MAKE US THE PREFERRED SUPPLIER IN THE AREAS THAT WE OPERATE AND CERTAINLY THE NUMBER ONE SUPPLIER FOR THE WESTERN CAPE //

Walling at Youngman Roofing in Maitland

80 / www.enterprise-africa.net

Portland closely monitors the quality and variety of other products across different markets so that it can remain at the very front of the industry in South Africa. The company is now aspiring to higher standards in terms of basic megapascal (MPa) – a measure of strength or pressure.

“On the readymix side, you always have to be in front of the market,” says Heyns. “That is why we are looking at self-compacting concrete, we are looking at areas like the UAE where they have a standard of 60. 80, and 100 MPa concrete compared to South Africa where the standard is 25 or 35.

We would definitely like to adapt our range so we are ahead of the market.”

Traditionally, Portland’s hollowcore business has been a supplier of decking and walling but the business has grown to manufacture other precast products for the construction sector.

“We also sell precast staircases, precast beams, precast lintels, precast columns and we think there is a big opportunity to expand this. We have doubled the size of our precast factory to be able to supply more staircases and beams, and we are entering a large project where everything is precast driven and must be concrete finished.”

This expansion and positive thinking is proof of Portland’s experience in the market. Over the past 30 years, the business has witnessed a number of national economic slowdowns and has adjusted to navigate them all. Preparing for when the market turns is vital, says Heyns.

“Unfortunately, the market and the economy are very tough in South Africa, especially in the run up to the elections.

The developers are in two minds on whether to push forward or wait and see what happens. That is normal and construction is a cyclical industry but while you are in a slow period you must prepare for the next boom. At some point, things will turn around and you have to be prepared for the work that will come in your direction.”

PORTLAND

HISTORIC SA BUSINESS Portland was established in 1988 by Heyns’ father Nico and business partner Helenus Scholtz. In the beginning, the business was focussed on property development with Nico being focussed on development and Scholtz an attorney with an interest in deeds.

The pair handled all building and construction, putting together teams and carrying out work, before also getting into marketing.

“When Portland started, it was called Portland Bouers (builders). For the first decade it was all about property development,” says Heyns.

“In 1998, Portland got the transport and marketing rights for Hardrock Quarry. Two years later, Portland acquired the quarry and registered the name as Portland Quarry. After acquiring the quarry, the company started Portland Readymix to buy directly from Portland Quarry.

“By the end of 2000, Portland Bouers, had 60-70 properties in the rental market and that was a big part of the business.

On the marketing side, Nico and Helenus had grown their activity and became 66% owners of RealNet Estate Agency.”

By 2003, Portland was no longer directly involved in building and development. While still purchasing parcels of land for development purposes, the company was now selling the land into the market at tender for a construction company to take on the project. All employees of Portland Bouers were moved to Portland Quarry, Portland Readymix and Portland Hollowcore which started in 2006.

Today Readymix and Hollowcore makes up around 40% of the total Portland Group each with Quarry representing around 20%.

In 2015, the Heyns family bought the stake from Helenus Scholtz and since then, it has been running as a family business. “My dad Nico is the Managing Director, my mother Kitta is also a Director, my sister Aniska is the Business Systems Manager, and I am the General Manager,” says Heyns.

“We do have our disagreements but overall, we all support each other. It’s nice to know that people in the office will back you, whatever the situation.

We are a very good team and we all work together well, with the same outlook and the same goals.”

In order to keep a finger on the pulse of the development sector, Nico and Kitta Heyns established Nicka Beleggings Pty Ltd in 2005. The company works on small individual developments and is a completely separate entity from Portland.

“They’ve completed a few developments and they are working on upmarket residential apartments. They are putting a beachfront building into the market now with units that are priced between R4-8 million. There are two more high-end residential buildings going up later this year with around 40 units. All are located in Blouberg,” says Heyns.

SOLID PIPELINE Right now, Portland is supplying into a number of large construction and infrastructure companies that are involved in some major projects around the Western Cape. In the future, the company is looking to deepen its involvement in these projects and to build its reputation among these big clients.

“National Asphalt is a big client for the quarry and they buy a lot of road stone from us. We want to be able to supply all the stone requirement for National Asphalt as long as we are able to deliver the correct spec.

“Our other big customers are logistic companies who make deals with construction companies to supply product to their projects. On the Readymix side, we have great relationships with a number of clients

BORNMAN & HAYWARD ATTORNEYS

Attorneys, Notaries, Conveyancers And Mediators

Our Vision We as directors and staff, as a team, pride ourselves in providing quality legal solutions with integrity and efficiency. We are committed to the values of loyalty to our clients and one another with sincerity, honesty and integrity.

Our Mission Integrity. Efficiency. Solutions.

www.borhay.co.za www.enterprise-africa.net / 81

INDUSTRY FOCUS: CONSTRUCTION

WE FOCUS ON

SUPERIOR SERVICE AND ON-TIME DELIVERY AT COMPETITIVE PRICES

Preferred Steel Suppliers to Portland

D & E Group is proud of our history, staff and track record in the Western Cape and we continue to strive for exceptional customer service and long term honest partnerships with both suppliers and customers.

www.degroup.co.za • 021 907 4700

82 / www.enterprise-africa.net

from the development, building and construction industries. For example, we started supplying Balwin Construction earlier this year, everything is running well and we are looking forward to beginning a big project together in May. “For Hollowcore, Balwin is again a big customer and we are happy to be working with them on a precast design that is used across the Western Cape. Calgro M3 is very active with government projects and they are precast driven. They are expanding their footprint in the Western Cape and we are happy to be supplying them on the Belhar Gardens development. Concor is a strong brand in South Africa and we are busy building a relationship together. We are also excited about a relationship we are building with Stefanutti Stocks. These big companies are all starting to work more with precast and that is exciting for us,” details Heyns.

“For both Readymix and Hollowcore, Group 5 was a big customer but they are now in business rescue

PORTLAND

so we are in negotiations with the companies that are taking over the projects,” he adds.

Housing, commercial buildings, industrial property, roads, and more are all taking Portland products and the company’s reach continues to grow.

In terms of geographic expansion, with so much work still waiting in the Western Cape, Heyns is reluctant to push into other provinces at this time.

He explains that a strategy has been

// LOOKING AT FUTURE GROWTH, WE HAVE DONE A LOT OF RESEARCH ACROSS ALL AREAS OF THE BUSINESS. WE WANT TO EXPAND IN EVERYTHING THAT WE DO //

developed which will see Portland grow away from its home at the quarry in steady 50km steps.

“We want to grow the company but we don’t necessarily want to grow outside of the Western Cape at this stage,” he says. “We would like to expand our reach within 50km of our existing sites. We want to be the preferred supplier of the materials we offer in the Western Cape and so it doesn’t make sense to open up plants that are long distances away from our existing operation.”

This is a company that knows its market, and has 30 years of experience delivering quality. As the second generation of family leadership moves to the fore, the challenge will be to overcome slow market conditions.

“The Group 5 situation has been troublesome for the industry but we have been through this type of thing before with the likes of NMC and Botes & Kennedy.

“We know we have to run our business safely but we also know we

must continue to push boundaries.

We will always try to be the leader in everything that we do so whatever work there is comes to us first, and with that I am confident,” says Heyns.

Compared to a construction industry which remains unsteady, Portland is strong and Portland is stable, and the people behind the business have built a robust strategy to take the company forward without allowing any cracks to show.

“Our main focus is to improve our quality and improve our client satisfaction. This will make us the preferred supplier in the areas that we operate and certainly the number one supplier for the Western Cape,” Heyns concludes.

WWW.PORTLAND.CO.ZA

www.enterprise-africa.net / 83

EXHIBITION CALENDAR

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

SIGN AFRICA 2019 JUNE 05 - 06 | CAPE TOWN The Sign Africa Expo is Africa’s leading event for the printing and signage industries.

The Sign Africa and FESPA Africa event, sponsored by Roland, is a platform for visitors to get their fingers on the pulse of this vibrant, ever-evolving industry. It will assist your digital technology investments and allow you to research product diversification as well as new ideas for next-level business growth and profitability. Speak to product experts on how to best meet your customers’ demands and remain competitive.

The Expo will showcase all aspects of wide format digital printing, garment decoration, screen printing and signage. Visitors can be inspired by the latest technologies and trends right in their own city.

SA AIDS CONFERENCE 2019 JUNE 11 – 14 | DURBAN In 2019 the 9th SA AIDS Conference, 1114 June, will be held at the Durban ICC. This is a biannual conference hosted by Dira Sengwe and organised

by The Foundation for Professional Development (FPD) who also serve as the Conference Secretariat for the Conference Committee Structures.

84 / www.enterprise-africa.net

This conference is the second largest HIV conference in the world, attended by over 3,000 people, 25% of which are from countries other than South Africa.

It is one of the most prominent medical meetings in southern Africa.

Delegates include scientists, medical practitioners and representatives from the public sector, NGO and faith-based sectors and the corporate sector.

AFRICA’S BIG SEVEN JUNE 23 - 25 | JOHANNESBURG Africa’s Big 7 is the only food and beverage trade show in Africa to bring together hundreds of global suppliers with motivated buyers from each segment of the buying community.

Africa’s Big 7 is the annual meeting place for food professionals across the continent who visit to source, meet and gain insight into the very latest developments affecting the industry.

As an important event at Africa Trade Week 23-25 June 2019, Africa’s Big 7 takes place with The Hotel Show Africa, two high-level conferences, global chef competitions, hospitality talent and an impressive programme of FREE training plus a range of other exciting features and demonstrations you will not want to miss.

AFRICA AUTOMATION FAIR TICKETPRO DOME JUNE 04 - 06 CAMINEX 2019 KITWE SHOW GROUNDS, ZAMBIA JUNE 04 - 06 INDUTEC 2019 GALLAGHER CONVENTION CENTRE JUNE 11 – 13 AFRICA CONSTRUCTION EXPO GALLAGHER CONVENTION CENTRE JUNE 11 - 13 AFRICA’S BIG SEVEN GALLAGHER CONVENTION CENTRE JUNE 23 - 25 CHINA TRADE WEEK SOUTH AFRICA 2019 GALLAGHER CONVENTION CENTRE JUNE 23 - 25 THE HOTEL SHOW AFRICA 2019 GALLAGHER CONVENTION CENTRE JUNE 23 - 25 WEST AFRICA BUILDING & CONSTRUCTION GHANA 2019 KEMPINSKI HOTEL GOLD COAST CITY ACCRA JUNE 26 – 28 NIGERIA BUILD EXPO 2019 THE LANDMARK EVENTS CENTRE, LAGOS JUNE 27 – 29

Your engine reliability Our trusted range Trusted by the best to deliver a complete range of advanced products and support.

For generations, aviation has counted on Shell Aviation to provide high-quality fuels and to deliver innovative oils, greases, and fluids – all designed to increase your efficiency and reliability, and backed

by Shell’s comprehensive support.

To learn more about Shell Aviation fuels please contact Saj Hoosen:

To learn more about AeroShell lubricants please contact Steve Cloete:

Shell Downstream South Africa (Pty) Ltd Phone: +27 6 09 766 766 Email: sajidah.hoosen@shell.com

Atlas Aviation Lubricants Phone: +27 11 917 4220 Email: steve@atlasoil.co.za

13232/E

YOU’VE SPENT YEARS WRITING YOUR SUCCESS STORY. NOW IT’S TIME TO SIGN ON THE DOTTED LINE.

At PPS we encourage leading professionals to continue realising their ambitions.

We provide excellence in financial, investment and insurance solutions to ensure graduate professionals have the freedom to focus on their goals and benefit from a Profit-Share Account that has no rival.

If you’re good enough to get in, why would you go anywhere else?

For more information contact your financial advisor or visit www.pps.co.za