Enterprise Africa October 2023

AFRICA

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

October 2023

www.enterprise-africa.net

Golden Nile Brew Unparalleled in Quality Exclusive interview with Nile Breweries Country Director, Adu Rando ALSO IN THIS ISSUE:

Woolworths / Avis SA / Aspen Pharmacare / Safaricom

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EDITOR Joe Forshaw joe@enterprise-africa.net

EDITOR’S LETTER

SENIOR PROJECT MANAGER Sam Hendricks sam@enterprise-africa.net SENIOR PROJECT MANAGER James Davey jamesd@enterprise-africa.net PROJECT MANAGER Ekwa Bikaka ekwa@enterprise-africa.net PROJECT MANAGER Eleanor Sarbutt-King eleanor@enterprise-africa.net PROJECT MANAGER Jamie Waters jamie@enterprise-africa.net LEAD DESIGNER Aaron Protheroe aaron@enterprise-africa.net FINANCE MANAGER Isabel Murphy isabel@enterprise-africa.net

CONTRIBUTOR Manelesi Dumasi CONTRIBUTOR Timothy Reeder CONTRIBUTOR Benjamin Southwold CONTRIBUTOR William Denstone

Cheers to Uganda! The country’s Nile Breweries is internationally renowned and, from its two sites, produces a portfolio of highquality, great tasting beer made from 99.5% local content, by local people. It’s a true story of success, growing from family business to organisation of national importance, enhancing governance and standards all the time.

Few can claim to have delivered such a lasting impact. AB InBev has ensured Nile Breweries local ingredients has grown from 70% to almost 100%, employment figures have grown dramatically, the product portfolio has expanded, and ESG and CSR initiatives continue to advance positive projects in the country, especially around water health. This is a case of big business doing great while doing good – not something we hear about too often.

South Africa’s powerhouse retailer Woolworths is also a brand that is unanimous in the country, recognised for quality and excellence in stores and online. Currently undertaking a five-year strategy that will see major improvements behind the scenes, aligning the company with global sustainability practices, Woolworths is looking at packaging, local supply chain, CO2 emissions, and much more to ensure it is a viable operation in decades to come.

Avis South Africa, the world’s leading car rental brand, is currently going through an interesting period as it becomes part of Zeda – the newly JSE-listed holdings business created after Avis was unbundled from Barloworld, allowing it to grow further across southern Africa. CEO Ramasela Ganda is keen on sustainability through efficiency and is promoting a fresh set of ESG values through a mainly female leadership team.

The theme here is that all are zeroing in on improvements that impact the local community, and if more businesses would join the regional push then more progress could be made developing sustainable, lasting supply chains, and wider wealth distribution.

Published by Chris Bolderstone – General Manager E. chris@cmb-multimedia.co.uk Fuel Studios, Kiln House, Pottergate, Norwich NR2 1DX +44 (0) 1603 855 161 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 2022

Tell us how your business is investing in the community that it calls home, and what impact these investments are making beyond profit. We’re online at LinkedIn.

Joe Forshaw EDITOR

GET IN TOUCH +44 (0) 1603 855 161 joe@enterprise-africa.net www.enterprise-africa.net

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CONTENTS NILE BREWERIES 6 Golden Nile Brew Unparalleled in Quality SAFARICOM 14 Purpose Beyond Profit WOOLWORTHS 20 Woolworths Drives Good Business Journey ASPEN PHARMACARE 28 Global Growth Continues for SA Powerhouse LIFE HEALTHCARE 34 Investing in the Future of Quality Healthcare AVIS SA 40 Successfully Connecting Humanity KCB GROUP 46 KCB Promises Better for People

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40 MONTIGNY 52 Growing New Standards for Commercial Forestry LESEDI 56 Empowering Africa with Innovative Engineering SAOTA 60 Creativity and Originality Key to Global Growth MANSER SAXON 66 Shaping Cities and Communities for Three Decades MARSH AFRICA 72 Understanding Modern Business Risk Alongside the World’s Best 78 SAFOSKOR Minerals In Demand, Globally www.enterprise-africa.net / 5

NILE BREWERIES

Golden Nile Brew Unparalleled in Quality PRODUCTION: James Davey

Multi-award-winning Nile Breweries, the home of Uganda’s Nile Special, is targeting significant growth over the next five years with more beer coming from its two breweries and new brands coming from its international portfolio. Country Director Adu Rando talks to Enterprise Africa about the major potential in Uganda.

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Adu Rando, Country Director

INDUSTRY FOCUS: FOOD & DRINK

//

Hongera (cheers or congratulations) to Nile Breweries, Uganda’s decorated brewing business, part of AB InBev, home of Nile Special and Eagle Lager and a host of other beers. Since 1951, the company has been quenching thirsty Ugandans, utilising the very best water as its base ingredient, tapped directly from the source of the River Nile in Jinja in the south of the country.

Alongside brewing excellence (Nile Special has won gold at the Monde Selection Awards in Belgium 23 years in a row) Nile Breweries is also driving sustainability and positive economic impact in the country. With a leading market share position and a strong relationship with government (paying more than 2% of total tax revenue in the country), the growth

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taps are open and Country Director Adu Rando sees a glass half full.

“Uganda is, in our view, one of the countries with the biggest opportunities for growth for a few reasons,” he says.

Rando has worked across the globe for AB InBev and was the first employee to move from the global conglomerate into Nile Breweries when AB InBev took a stake in Nile’s holding company SABMiller in 2016.

He says that the business has three obvious growth channels. First is general growth that occurs alongside a growing economy. 4.7% GDP growth in 2022 and 5.3% in 2023 is strong in a post-Covid environment that has flattened other regional economies.

“We see from experience we have in other markets that as the economy develops, there is a big

boom in beer consumption.

“Since Covid-19 has been brought under control, we are seeing strong growth because the government is investing in its microeconomic policies.

Things are stable and consistent, with manageable inflation. There is longterm thinking around infrastructure development and that boosts business and attracts investors. More recently, the deal with Tanzania for oil pipelines to travel across the country has been generating economic progress with many companies looking to get involved. These initiatives give us good confidence that the economy will continue to grow with strong and consistent fundamentals.”

He adds that beer, a nonessential item, is one which tends to be purchased when an economy is

NILE BREWERIES

performing well and the public has disposable income. “It is the number one thing that people go for when they have spare money in the pocket and that makes it a super connected way to gauge how the economy is growing.”

Currently, Nile Breweries is on track for a strong year, suggesting positivity in the local economy.

As part of the AB InBev family, Nile Breweries can call on a strong international product portfolio when looking to fulfil needs in different market segments. At the top end of the market Nile Breweries delivers Stella Artois and Budweiser, and across the affordable range it has a range of highquality products. But Rando believes there could be opportunities for other recognised brands to enter Uganda and this is another avenue for growth.

“There are significant portfolio opportunities,” he stresses. “There seems to be a trend with younger consumers who are seeking slightly sweeter but lower alcohol products and while we do have some products

in the portfolio, we have alternatives in South Africa, including Flying Fish, that are not yet present in Uganda that we could potentially bring in.

“It’s likely that we will bring in the Corona brand,” he adds. “It’s not

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INDUSTRY FOCUS: FOOD & DRINK

news that Corona is one of the three flagship global brands of ABInBev and there is guidance that these should be available in all markets globally. It’s in the works but we don’t know exactly when that will be launched as a high-end product.”

FORMALISING MARKETS The third growth opening is more complicated and longerterm. One of the key underlying challenges for the beer industry in Uganda is illegal, informal, criminal alcohol distilling and brewing.

Rogue traders bring in tankers of risky ethanol, incorrectly documented to avoid detection, and add sugars or flavourings to make dangerous moonshines in unsanitary, hazardous conditions. No tax duty is collected and so the products are incredibly affordable. Bottled up in used plastic jerry cans or containers, this form of informal waragi is addictive and high in alcohol content.

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If this black market, underground economy can be formalised or disrupted, and just a small percentage of participants moved to the professional, formal alcohol market, the starting point for consumers is beer, where Nile Breweries leads the way.

“The formal alcohol sector is only estimated to be 35% of all alcoholic beverage consumption,” says Rando.

“There’s a lot of homework to be done by policymakers in the country, and the big stakeholders including the government to tackle this problem.

“We are helping to put together a task force to assist them with best practices from modern countries where there has been an improvement in regulation and the fight against illicit or counterfeit alcoholic beverages.

It’s a win-win-win situation as by removing illicit players from the market, you generate more revenue for the government through taxation and you migrate consumption into the safer formal sector, especially

beer. We are certainly not looking to close down a local village mother cooking home brew banana wine.

“We are dominant in the affordable beer market and we are already getting positive comments from the government around regulation.

There is a new bill being pushed which will allow police to seize counterfeit, plastic bottle alcohol.”

Alcohol remains a strong part of the Ugandan culture, but unlicensed, unsanitary brewing continues to blight communities and Nile Breweries recognises the need to offer affordable products that can help encourage people to choose beer over unsafe alternatives.

“Our Eagle products – lager, extra and dark – are excellent as entry level products in the market,” reminds Rando.

In September, Nile Breweries began a campaign dedicated to education around responsible drinking. ‘Enjoy Like a Boss, Be a Champion of Moderation’ is the strap line for the project, hoping

NILE BREWERIES

to sensitise the public on dangers of drinking too much and the associated health issues. Rando was onsite in Mbarara to help launch the campaign which will run until December.

Taking market share from the informal space is dependent on economic growth which will allow the public more Shillings to spend on beer.

YEAR-ON-YEAR GROWTH Combining economic growth with portfolio opportunities and retrieval of informal market share will take Nile Breweries on a strong growth path that Rando hopes could yield significant growth statistics.

“We believe and expect that we can achieve double digit sales year-on-year over the next five years.

Growing by more than 10% y-o-y over the next five years is going to be a massive growth engine for Africa, and we are doing it this year, in year one.”

An important engine in this growth is the company’s BEES app.

An ecommerce and SaaS product designed by AB InBev to improve sales performance and digital reach, the app is used across 24 countries with five million users. Launched in Uganda in 2022 to bring efficiency in trade sales, BEES was quickly adopted, growing to achieve 90% of sales digitally after just five months. “Today more than 95% of ours sales flow through the app, with more than 80% of our customer base making purchases on a monthly basis,” says Rando. BEES allows the company to learn more about its customers and trends in the market, providing convenience, transparency, tailor made promotions, new services with other digital partners.

Encouragingly, all this growth and innovation comes in the first full fiscal year for the business since the lockdowns of Covid-19. Uganda did not ban the sale of alcohol but it did prohibit bars from opening.

This was only lifted in full in February 2022. Since then, the company has

seen nothing but growth and plans to capitalise at its brewery sties.

“For 2025 we will need to add things,” admits Rando. “There is physical space at both sites but Mbarara has the biggest space and we only have one line so expansion there makes sense.” But planning is bitter-sweet as the excitement around growth comes with concern about water quantity – a focus area for AB InBev globally.

The Mbarara brewery draws from the River Rwizi which flows from west to east, emptying into Lake Victoria. As part of AB InBev’s global strategy around water stewardship, various initiative are underway to improve quality and supply in Mbarara with the company aiming for 100% of communities in high stress areas where it operates to have measurably improved water availability and quality by 2025.

At Jinja, where the White Nile emerges before pouring 4200 miles across Africa to the Mediterranean Sea, Nile Breweries is a driving

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INDUSTRY FOCUS: FOOD & DRINK

force in the community.

“Jinja has the capacity for expansion and likely in 2025 or 2026, we will see another line to support our growth,” Rando reveals. “That creates more jobs, and increases the amount of opportunities we deliver in terms of buying more from farmers and packaging companies etc. We are keen on developing locally as much as we can and we are one of the most successful companies in AB InBev when it comes to doing that.”

He adds that the company went from 70% locally sourced materials five years ago to almost 100% today. “Our impact on the local economy is massive.”

LOCAL, RELEVANT Local impact and Ugandan involvement has been at the heart of Nile Breweries since its establishment.

The solid infrastructure built by the founders, supporting native jobs and

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sustainability, was part of the reason the government took a stake in the business before selling to SAB in 2002. Now, the Jinja facility produces 1.8 million hectolitres annually and Mbarara adds more than 650,000 hectolitres each year. To achieve this vast production a widespread value chain is engaged.

“It’s a massive effort,” smiles Rando.

“I am very impressed with the level of effort around the things that need to be done to secure this. For example, everything needs to be planned two years in advance. To properly cater for the amount of barely we need to grow means we need to plan the amount of seeds we need to bring in.

The proper quality seeds for the type of barley that makes quality beer is not available anywhere – it’s a big investment to certify those seeds.

There are tonnes of seeds that must be sourced and then distributed to farmers and the logistics planning is large.”

Uganda’s agricultural landscape

is fragmented and characterised by challenging terrain. Rando says that his team recently acquired a fleet of offroad motorcycles, reminiscent of competition dirt bikes, so that agents could reach small rural farms faster.

“In the last five years, we have helped directly train, digitally include, and financially empower around 25,000 farmers. Every year, we visit and train around 10,000 farmers ourselves. It takes a robust structure to deliver this.

“If we fail to produce the barley that we need to support our brews and we have to import, that is a double hit for us as it costs more and we lose tax benefits that you gain for local production.”

AB InBev has invested heavily in Uganda over the past decade to ensure localisation of production. A $20 million maltings facility was complemented by a $6 million technology investment into a barley humidity machine that keeps the product in perfect conditions in the silo to extract more

NILE BREWERIES

Our Chairman Mr. Ranmal Viram Keshwala over 30 years of experience in manufacturing, industry management and distribution at a regional level, he perfected his profession between India, the UK and Uganda. He actively supports businesses as the Minister for Trade and Industries of the Busoga Kingdom. With close ties to the community, he is passionate about finding solutions to bring products to the end user, aiding other manufacturers with key components needed for processing and supporting charitable institutions and women’s groups.

Since its establishment the Group has grown in strength to strength through experience, reputable manufacturing, the successful implementation of its distribution network, reliable logistics and quality services.

To innovate, produce and continually develop quality products whilst offering employment opportunities and commitment to the community.

To identify customer and market needs to create and avail premium products that will improve quality of life, productivity and functionality.

Contact: +256751914596 | keshwalagroup.com (Mr. Srikant Jha, Senior Sales Manager. Beverages Division)

malt and, ultimately, more flavour while reducing waste at the same time.

Both investments created significant jobs and local opportunities.

For Rando, living and working in a country with one of the highest per capita alcohol consumption stats in Africa, the potential bubbling

// IN THE LAST FIVE YEARS, WE HAVE HELPED DIRECTLY TRAIN, DIGITALLY INCLUDE, AND FINANCIALLY EMPOWER AROUND 25,000 FARMERS //

up brings crisp excitement.

“I visited Uganda before I moved for the job,” he remembers. “It always was the country that gave me the best feeling. Ugandans are hardworking, ambitious, proactive, engaged, and looking for new opportunities with digital solutions. There is a young, resilient population, with good education, and a consistent government regime and that brings long-term thinking around the economy – the growth potential here is undeniable.”

He highlights historic recognitions of the brand alongside modern, international quality standards as the perfect recipe for a tasty business.

“People light up every time we talk about Nile Special here in Uganda. We brew, pulling water from the source of the Nile, and the way the brewing

process has evolved in recent decades has made the quality standard for Nile Special world class. Quality is measured at every stage in the brewing process and with every input, and Nile Special was ranked top for quality across all of our beers in the whole of Africa across 12 countries that we operate in.”

Growth of Nile Breweries would not be possible without the support of Ugandans and the long value chain that brings the beer portfolio to life.

Rando is ambitious and raises a glass to a fruitful future in the Pearl of Africa.

“As a brand, Nile Breweries is the pride of the country. It is iconic and the quality is unparalleled,” he concludes.

WWW.NILEBREWERIES.COM

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SAFARICOM

Purpose Beyond Profit PRODUCTION: James Davey

East Africa’s Safaricom, on a mission to become a leading technology business, has taken a strategy around sustainability that involves continual upliftment of the whole community.

Entering into several new partnerships that will advance its position around ESG, this is a growing business with a strong focus.

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INDUSTRY FOCUS: COMMUNICATIONS

Peter Ndegwa, CEO

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In Kenya, where innovation around mobile data and technology is some of the most advanced in the world, the landscape for the big players is highly competitive. Mobile network operators providing telephony, communication, data connectivity, money transfer, cloud storage, and much more are challenged by consumers to keep up with the rapid pace of development.

For businesses, this is often one of the most challenging aspects around sustainability. How can you please customers, stay apace with technology, control cost, and have an impact beyond profitability? This is the conundrum for Safaricom, and one which it is so far able to manage better than most.

“We are committed to Transform Lives through our products and services,” says CEO Peter Ndegwa.

Operational across Kenya and Ethiopia, Safaricom has a customer network exceeding 42 million

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people and is listed on the Nairobi Securities Exchange (NSE). Annual revenues of around KES 298 billion ($2.5 billion) are generated through mobile communication subscriptions and the famous M-PESA product.

Today, the company is aiming to become a fully-fledged technology company by 2025, supporting people when they want to connect with each other, with businesses and information, and with opportunities.

Safaricom customers enjoy 5G data plans and roaming connectivity alongside fixed broadband and much more. Businesses can take advantage of secure fibre, M-PESA for business, cybersecurity, and a product portfolio of financial services products from the likes of AAR Insurance.

In September, the company inked a new partnership with diversified financial service group Britam to bring new packages that include data and insurance products to drive improved financial security and inclusion.

Labelled Data Plus, the offering is about more than simply data. Micro insurance products delivered through mobile network operators is a booming space, especially in Africa, with little infrastructure required beyond a feature phone and data connectivity.

“Safaricom remains keen on bridging the digital divide, and we do this by availing affordable data bundles and 4G devices, which empower Kenyans to leverage our extensive network coverage and enjoy the transformative power of the internet,” said Chief Consumer Business Officer, Fawzia Ali. Evah Kimani, Britam’s Director of Partnerships and Digital, added: “We are delighted to partner with Safaricom, to offer customers innovative and affordable insurance solutions that safeguard their dreams and aspirations. Through this partnership, we aim to reach out to millions of Kenyans who do not have access to insurance protection against various risks that can affect their livelihoods and well-being.”

This is just the latest offering in a range of announcements which has seen Safaricom address needs of customers through innovation and technology.

// ENVIRONMENTAL CONSIDERATION IS CRITICAL TO THE SUCCESS OF OUR BUSINESS AND AS SUCH WE HAVE A ROBUST STRATEGY THAT IS RESPONSIVE TO GREEN GROWTH AND CLIMATE CHANGE INTERVENTIONS //

SAFARICOM

INTEGRATING ESG Success of Safaricom in its traditional markets is well-documented – the company is iconic in East Africa. but this is not just the result of quality products and service, it comes inexorably as a result of the company positioning itself as a community partner.

Safaricom’s ambition to transform lives is lived within the business and is demonstrated through the investments it makes into corporate social responsibility projects.

September saw the company partner with a group of Kenyan banks to secure a loan that would fund ESG-related schemes in the country.

Standard Chartered Bank, Stanbic Bank, ABSA Bank and KCB Bank came together to provide KES 15 billion (potentially rising to 20 bn) which

www.aar-insurance.com

will be used to focus on reducing its emissions to reach Net Zero targets, tracking gender diversity, and monitoring social equality impacts.

“In line with our focus to advance our sustainable business agenda, this funding will unlock our ability to create more diversified investments that will support transformative investments in new technologies, systems and services that allow us to comprehensively manage our ESG footprint,” said CEO Peter Ndegwa.

Bringing ESG to the fore and embedding this culture within any business is no easy task. While the will is normally there, change is difficult for everyone – especially companies with thousands of employees across different divisions and geographies.

This good news came after another positive in August when the

company was awarded for its climate initiatives. At the Environmental Sustainability Awards from Kenya Private Sector Alliance (KEPSA) and the United Nations Environment Program (ENEP), Safaricom was recognised for innovation across digital and green solutions that contribute positively to the climate, people, and profits.

Particularly encouraging was the company’s deal with the Kenya Forest Services to plant five million trees by 2025, an initiative that will create 2,000 direct jobs and 5,000 jobs indirectly. Then there’s the recycling of 913 tonnes of e-waste as well as the successful recycling of 88.1% of the company’s solid waste across FY 2022.

Safaricom also reduced carbon dioxide emissions by solarizing up to 1,400 of its network sites as it looks to become a net-zero emitting organisation by 2050.

Proud to be supporting Safaricom

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INDUSTRY FOCUS: COMMUNICATIONS

“We are grateful that our efforts towards environmental sustainability are being recognised,” said Ndegwa.

“Environmental consideration is critical to the success of our business and as such we have a robust strategy that is responsive to green growth and climate change interventions.

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This ensures that as a company we are producing and consuming responsibly. We also work with a wide array of partners on various environmental stewardship initiatives.”

In the same month, Safaricom invested more than KES 50 million in community projects in the central

counties of Nyandarua and Laikipia.

Through the Safaricom Foundation and the M-PESA Foundation, education, health, and environment projects will benefit 5000 people and 100 schools. Infrastructure renovations will continue to take place across school buildings, and associated technology and digital solutions will be delivered and advanced. Fruit tress will also be donated to drive reforestation and regreening drives.

“At Safaricom,” said Ndegwa, “we believe in the importance of investing in the communities around us, and we do this as a brand and through the Safaricom and M-PESA Foundations. Education is one of the areas we are keen to make an impact, and by investing in these schools in Nyandarua and Laikipia Counties, we are transforming lives and enhancing the learning outcomes of hundreds of learners.

“This tree planting exercise,” he

SAFARICOM

added, “is part of our commitment to plant five million trees by 2025 and to be a net zero organisation by 2050.

The school regreening programme on the other hand will support schools in revenue regeneration, improve food security and ecosystem services.”

FOUNDATIONAL SUPPORT The Safaricom Foundation is a vital arm of the business and recently celebrated its 20th anniversary. In that time, the division has invested more than KES 5 billion in community projects which have directly impacted more than eight million people.

To celebrate, Safaricom donated special packs to maternal units at hospitals around the country as well as food hampers for children’s homes.

Ndegwa is understandably proud.

“In the past two decades, Safaricom Foundation has grown to become one of the biggest enablers of Kenyan communities. Whether through partnering with individuals on small investments that have a big impact, or implementing large-scale, long-term programs of nationwide scale, our purpose of transforming lives has always been at the core of the Foundation.”

Chairman Joseph Ogutu added: “As we celebrate 20 years of transforming lives, we have learned a lot and developed key insights into how we approach philanthropy. One key strategy that has defined our interventions is partnerships with experts in the fields we seek to create impact, and with the communities we aim to transform. As we look to the future and implement our 2023-2026 strategy, partnerships will remain important in our work as a Foundation.”

Looking forward from an ESG perspective, Safaricom has officially joined the UN Global Impact Forward Faster initiative which will assist in the acceleration of the 17 key Sustainable Development Goals to meet the 2030 Agenda.

This initiative is an attempt to

bring businesses together within a community that takes action to drive positivity in gender, climate action, living wage, water resilience and finance and investment.

This progress is vital as, recently discussed by UN Secretary-General Antonio Guterres, there has been a slowdown in progress, globally, around the Sustainable Development Goals.

“We have taken up the challenge to fast-track key sustainability action areas as the 2030 deadline approaches.

I am glad that we at Safaricom are shaping the narrative on the delivery of the SDGs which are key to reducing inequalities and making our planet better,” said Ndegwa.

“As much as we are doing a lot in short and long-term investments to integrate ESG into our business practices, there is still some way to go as global challenges such as climate change, the Covid-19

pandemic and conflicts have slowed down momentum on the achievement of some of the goals. As the private sector, we can collectively find ways to overcome the challenges through partnerships to fulfil our agenda,” he added.

The company’s core business combined with its commitment to upliftment continue to separate it from competition. FY 2023 numbers improved across almost all metrics with service revenue, messaging revenue, mobile data revenue, and M-PESA revenue on the up. Safaricom is an industry leader that moves with purpose beyond profit, and that makes it truly sustainable.

WWW.SAFARICOM.CO.KE

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WOOLWORTHS

Woolworths Drives Good Business Journey PRODUCTION: James Davey

One of south Africa’s most historic and favourite retailers, Woolworths is deepening its connection with consumers by placing sustainability at the heart of everything it does. Julie Maggs, GM Beauty, tells Enterprise Africa more about the challenges and opportunities with a sustainability strategy driving the business forward.

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INDUSTRY FOCUS: RETAIL

//

South Africa’s Woolworths is perhaps the most recognised, and one of the most loved, brands in the country. In fact, in August 2023, the Kantar BrandZ Most Valuable South African Brands report listed Woolworths as the eighth most valuable brand in the country, highlighting the company’s focus on sustainability as a key driver of success. “Sustainability has become a fundamental requirement for doing business and it is also an enormous opportunity for brands,” the report said.

In October 2022, the company was the first SA retailer to remove single use plastic bags from all of its food markets.

Part of a zero-packaging waste to landfill strategy, which includes adopting

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recycled and recyclable packaging, Woolworths has since removed single use plastic straws, utensils, cotton bud stems and more from its product range.

“We are deeply committed to our zero-packaging waste to landfill vision and delighted to have reached this target,” said Chief Technology and Sustainability Officer, Latiefa Behardien.

In August 2023, used coffee bean sacks that are converted into mannequins for use in the fashion space were adopted by Woolworths, taking another step towards reducing plastic waste to landfill to zero.

“We are delighted to be the first large retailer in South Africa to make such a significant investment in them and going forward we will

continue to add more into our stores,” said Tracey Lotter, Woolworths Head of Visual Merchandising.

In May 2023, another fresh initiative was hitting the roads as, in partnership with DSV and Everlectric, Woolworths became the first SA retailer to rollout electric panel vans for delivery services, reducing carbon footprint and cementing its position as a sustainability leader.

“Last year we announced our commitment to electric delivery vehicles, and we are delighted to now have nearly half our fleet powered by the sun. The new electric vehicles have been introduced on selected routes in Cape Town and Gauteng with further rollouts and extensions

WOOLWORTHS

into KwaZulu Natal planned to follow as soon as possible,” said Head of Online and Mobile, Liz Hillock.

But in the often hard-to-green beauty sector, where Woolworths remains an industry leader, success has been limited. In September 2022, the company was celebrating the launch of innovative new lipstick products, packaged using paper and bamboo. Recyclable and certified by the Forest Steward Council® (FSC®), these new products form part of the Wbeauty range and come in a range of colours to suit different consumers.

However, the beauty sector remains challenged from a sustainability perspective. Plastic packaging is an obvious blight. Water usage during

manufacture is significant. Chemicals and animal testing linger as welfare issues. And locally crafted products are often more expensive than imported, mass-produced goods.

GBJ Thankfully, Woolworths has taken a commitment to a ‘Good Business Journey’ through which it aims to be more sustainable, more transparent, and more inspirational to others.

In the beauty industry, where sustainability leadership is required to encourage good practice, the company has onboarded industry veteran Julie Maggs to lead the way forward. She is ambitious and committed to the group’s strategy.

“I have worked in the beauty retail industry for close to 30 years,” she details, adding that her career spans multiple departments at EDCON before joining Woolworths in 2022. “Woolies is synonymous with sustainability and giving back - the Beauty department is no different.

“We’re heading into an exciting time with ambitious goals ultimately designed to double Woolies Beauty over the next five years,” she continues.

“We are committed to supporting local industry, not just through buying product, but ensuring that we educate and grow small businesses with our expertise and investment.”

When the company began phasing out plastic bags in the food division,

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INDUSTRY FOCUS: RETAIL

// WE’RE HEADING INTO AN EXCITING TIME WITH AMBITIOUS GOALS ULTIMATELY DESIGNED TO DOUBLE WOOLIES BEAUTY OVER THE NEXT FIVE YEARS // it partnered with a local company to develop a durable, reusable bag. This helped that business to treble its staff count and become a sustainable business in its own right.

For Wbeauty, the Woolworths

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house brand, local businesses have been engaged on everything from packaging to formulation and marketing. All products are vegan, cruelty-free, and paraben free. The range includes skincare, foundation, eye products, lipsticks, and associated makeup essentials.

“Wbeauty proudly manufactures close to 90% of their products locally,” smiles Maggs. “We have a number of partners, including SDK Agencies who are 100% black owned and woman-led and specialise in colour, fragrance, and skincare. Across our various suppliers we’ve created 500 jobs – a benefit to the local economy.”

Having launched a number of brands and new concepts in the past

(MAC, Bobbi Brown, Kiehls), Maggs has a clear understanding of what customers want and how they want to engage. And the environment is mixed. All want sustainability, all want quality and affordability, but different products must be consumed in various ways. Woolworths recently launched AMAZI in key stores around the country; an offering where consumers can attend beauty bars and enjoy nail services. AMAZI is proven to have had a real impact through upliftment, education, and empowerment.

“We’re exceptionally proud to partner with them,” says Maggs.

“From a sustainability perspective, we take immense pride in how we formulate our home brands,” she adds,

WOOLWORTHS

saying that new brands are imminent but must adhere to the company’s strict standards. “We only use responsibly, ethically, and sustainably sourced vegan ingredients, our packaging is recyclable or reusable, and we don’t test on animals. We have big ambitions in our Beauty business. We’re looking to introduce new brands (both local and international) and incorporate beauty departments into more stores and double the value of the Woolworths Beauty business over the next five years.

This focus and determination is already evident in our Canal Walk store which is home to our newest WBeauty flagship.”

REFLECTED IN RESULTS Woolworths Good Business Journey involves a number of key deliverables as part of the company’s Vision 2025.

Having a fully transparent, traceable,

and ethical supply chain by 2025; all private label products will be reusable, repairable, resealable, or recyclable by 2025; all key commodities will be from traceable sources by 2025; and all private label clothing, beauty, and home products will contain at least one renewed, reused, or recycled production material input by 2030.

Add this to net zero carbon impact by 2040 and 100% of energy to come from renewable sources by 2030 and the focus on positive change looks strong for Woolworths.

At the same time, the business itself must be sustainable and profitable to ensure the good work is viable in the long-term. In August, the company released financial results for the year ending 25 June 2023. Turnover was up 7% to R85.7 billion, profit before tax was up 29.5% to R6.7 billion, and

Group CEO Roy Bagattini, was thrilled.

“It has been a transformational year for our Group,” he said. “I am very pleased with the progress our teams have made in executing against our strategies, delivering a strong set of results and the highest earnings per share in the history of our Group.”

In the post-Covid environment, where shopping trends and retail life have changed dramatically, Maggs reports that beauty has remained strong throughout.

“It’s a category known to be generally resilient, and we’re enjoying a resurgence both in stores and online,” she says. “We’re particularly pleased about maintaining growth in our Online division in a post-Covid world because the initial sentiment suggested people were shopping online instead of visiting stores. We’re

Embracing Local Craftsmanship: Aranda Textile Mills and Woolworths In a world where sustainability and supporting local industries have become paramount, Woolworths has been a pioneer. For over two decades, Woolworths has partnered with Aranda Textile Mills, a South African manufacturer renowned for its exquisitely crafted blankets and throws.

Aranda’s journey with Woolworths reflects a shared commitment to preserving the legacy of Aranda’s textile weaving expertise while promoting sustainable and ethical manufacturing practices.

The unmatched name brand in woven blanket products since 1953 www.aranda.co.za | info@aranda.co.za | (+27) 11-693-3721

Aranda Textile Mills salutes Woolworths for its unwavering dedication to South African craftsmanship, recognizing the vital role it plays in supporting local industry and livelihoods. Together, we celebrate the fusion of tradition and sustainability, weaving a brighter future for South Africa.

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INDUSTRY FOCUS: RETAIL

// THESE INSIGHTS HARNESS OUR ABILITY TO STAY ON THE PULSE AND, WHEN PARTNERED WITH CUSTOMER DATA, DETERMINE WHICH TRENDS ARE MOST LIKELY TO RESONATE WITH OUR SHOPPERS AND PERFORM WELL // learning that our customers do both.”

Away from Woolworths stores, as many employers have slowly called for a return to the traditional workplace, the beauty industry is also realising positivity and, thanks to its

26 / www.enterprise-africa.net

convenience, Woolworths has been best positioned to meet demand.

“The return to office trend has increased opportunities for our makeup and fragrance business; categories that were sluggish during lockdown, while we’ve maintained the demand for skincare which was a lockdown win for us,” says Maggs.

But post-Covid, while successful in some areas, has been a real challenge in others as the economic impact and changes in consumer behaviour have been difficult to keep up with. Whether its macro challenges around energy supply or individual spending power, Woolworths has had to remain nimble.

“Our key challenges include supply chain issues relating to availability of packaging, cosmetic ingredients, loadshedding and the cost of living,” admits Maggs.

“These challenges have led

us to collaborate with suppliers further in advance and be agile in our approach (to packaging, for example) when needed.

“Loadshedding has been a significant burden this year,” she adds, noting more than 4000 hours of blackouts in 2023 by mid-July. “The cost of diesel to run generators (all Woolies stores stay open during loadshedding) has had a marked effect on our bottom line. This extends to our local suppliers too – many of them have been forced to spend capital on solar or generators which influences their cashflows.

“Our customers are under enormous financial pressure, and this has driven us to continue creating and delivering high-quality products at a price many would consider affordable,” she says, against the backdrop of a weak Rand, high interest rates, escalating debt, and inflationary stress.

WOOLWORTHS

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OFFERING OPPORTUNITY To deliver the necessary excellence expected by the public, especially when times are tough and repeat business from loyal customers is essential. This is how Woolworths satisfies shareholders and continues to grow in a highly competitive retail industry. This excellence comes from people. Part of the company’s Good Business Journey is to promote inclusive growth for all, and Maggs says this a real strength within Woolworths.

“An achievement I’m particularly proud of is having worked from the bottom up and being fortunate enough to offer others the same opportunity,” she explains. “At Woolies we value people; our training and graduate programmes make it possible for employees to learn on the job, regardless of their backgrounds.”

Building these skills allows for better planning, stronger development, and deeper understanding of markets, and this keeps Woolworths at the cutting edge allowing it to compete on metrics beyond just price.

“In terms of trends and forecasting, there are dedicated teams designed to track and forecast new opportunities, and we rely on them to inform our innovation in the space. These insights harness our ability to stay on the pulse and, when partnered with customer data, determine which trends are most likely to resonate with our shoppers and perform well,” explains Maggs.

Through all of the innovation and positive influence that Woolworths contributes, it is now recognised as a globally as a responsible retailer.

This was solidified in September when the company celebrated

its 15-year partnership with WWF South Africa through which the pair have spearheaded advancements in sustainable farming and seafood sourcing, water stewardship, alien plant clearing, on-pack recycling labelling, and various other initiatives.

With beauty, fashion, and food all taking big strides forward in sustainable performance this year, Woolworths continues to lead the way, setting an example for other retailers, while consistently reinforcing its brand position in the minds of all South African consumers.

WWW.WOOLWORTHS.CO.ZA

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ASPEN PHARMACARE

Global Growth Continues for SA Powerhouse PRODUCTION: James Davey

South Africa’s Aspen Holdings continues to ink international partnerships, utilising stateof-the-art facilities to manufacture critical medicines for local and export markets. The company’s reach and portfolio is unmatched and financial performance is proving the ongoing strategy to be very healthy.

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INDUSTRY FOCUS: HEALTHCARE

//

The past five years have been tumultuous for Aspen Pharmacare (Aspen), Africa’s leading pharmaceutical manufacturer. With the pandemic and ensuing economic crisis, the company’s attention was dragged in several directions all at once, while demand for traditional products continued. It required careful management and thorough planning, even when time was precious.

25 years since listing on the JSE, the employer of almost 4000 people in Africa supplies medicines to more than 115 countries through a significant global footprint. In South Africa the company is headquartered in Kwa Zulu-Natal and, through its brands, is well-recognised as a powerhouse in the pharmaceutical industry. The aim today is to deliver value to all stakeholders as a responsible corporate citizen that provides high-quality,

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affordable medicines globally.

Despite the global healthcare challenges of recent times, Aspen has been pumping out good numbers and performing strongly, taking challenges in its stride and adjusting where necessary. The nimble approach to business has helped the company to achieve strong results for the year ending 30 June 2023.

Revenue grew by 5% with EBITDA up by 1%. Group Chief Executive Stephen Saad was happy with performance and reiterated a focus on growth.

“We are pleased to announce solid results for the year with record revenue and normalised EBITDA delivered in H2 2023,” he said. “Pleasing reported revenue growth was achieved

by Commercial Pharmaceuticals and Manufacturing of 6% and 3% respectively, despite the volatile global trading environment.

“We have achieved outstanding progress in our endeavours to secure addition manufacturing volumes for our newly installed expanded sterile production capacities,” he added. “We are tracking well to achieve our previous

// WE HAVE ACHIEVED OUTSTANDING PROGRESS IN OUR ENDEAVOURS TO SECURE ADDITION MANUFACTURING VOLUMES FOR OUR NEWLY INSTALLED EXPANDED STERILE PRODUCTION CAPACITIES //

ASPEN PHARMACARE

guidance of related contributions of R2 billion in calendar year 2024, increasing to R4 billion in calendar year 2025.”

He was excited about potential in sterile manufacturing where the company has capacity for expansion.

Here, new partnerships have been key in unlocking opportunities.

“These new long-term collaborative opportunities in Manufacturing, together with the Serum agreement, concluded in 2022, will provide substantial support to our mediumterm strategy to fill our sterile manufacturing capacity. This in turn presents a potential annual contribution of at least R8 billion per annum.”

NEW PARTNERS The Serum agreement saw Aspen team with Serum Institute of India to manufacture, market, and distribute Aspen-branded vaccines for Africa. Inoculations against pneumococcal, rotavirus, and poly valent meningococcal, and hexavalent vaccines are now to be made in Africa

by Aspen SA Operations with more products to be discussed in the future.

Saad was clear that local manufacturing of pharma products is now an essential part of strategic planning for national health security.

“Africa has learnt from the experience of previous pandemics including HIV and now COVID, that regional capacities are fundamental to solving regional health challenges,” he said. “The agreement concluded with the Serum Institute, and the anticipated grant funding from the Gates Foundation and Coalition for Epidemic Preparedness (CEPI), complement our previously stated commitment to expand sustainable and durable vaccine manufacturing on the continent to reduce Africa’s global vaccine dependency.”

That grant funding was eventually secured in December 2022 when the Bill & Melinda Gates Foundation and CEPI supported Aspen’s local manufacturing ambitions with

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INDUSTRY FOCUS: HEALTHCARE

funding of US$30 million. Using the money to support the rollout of the Serum partnership, the preparedness of Africa to deal with outbreaks of disease, epidemics, and pandemics has been greatly improved.

“We thank both CEPI and the Gates Foundation for their commitment to support regional manufacture for Africa,” stated Saad. “Their commitment, together with our partnership with Serum, is an important first step in ensuring expanded and enduring equitable access to a pipeline of medicines and vaccines manufactured in Africa for Africans… This support will ensure we can continue to invest and expand our capacities, secure in the knowledge of future offtakes.”

HISTORIC COLLABORATORS In further effort to increase the reach and scope of Aspen across sub-Saharan Africa, focussing particularly on getting

32 / www.enterprise-africa.net

medicines to patients who need them, Aspen recently partnered with Lilly (subject to regulatory approval) on a distribution agreement that sees Aspen with rights to sell, promote, and distribute Lilly products throughout South and sub-Saharan Africa.

Saad was understandably excited at the prospect, highlighting the opportunity for yet more coverage where it is sorely needed.

“Aspen has enjoyed a longstanding relationship with Lilly over two decades, and we are delighted to enter into this agreement with them,” he said. “We are honoured that, not only have our commercial and regulatory capabilities been recognised, but also our dedication to ensuring broad access to African patients in need of cutting-edge medication. Lilly has an impressive portfolio coupled with a very strong pipeline, both of which strongly support this objective.

We have confidence in our team’s ability to deliver to all stakeholders on the opportunity presented.”

General Manager for Lilly SASSA, Cesar Buendia, said: “The agreement with Aspen offers remarkable potential to reach more patients and expand access to Lilly’s medicines.”

Soon after the Lilly announcement came a landmark agreement with Novo Nordisk which sees Aspen manufacturing human insulin at its Gqeberha facility. Catering for the needs of people with diabetes in Southern Africa – estimated at around five million people and growing – the pair intend to deliver more than 16 million vials in 2024. Around 250 people will work on the line at the state-of-the-art facility in the Eastern Cape, and Saad says that the trust shown in Aspen by international organisations reinforces its position in the market as an industry leader.

“Aspen has a clear objective and

ASPEN PHARMACARE

focus to capacitate Africa and give quality affordable access to critical medicines from sites based in Africa that are also capable of exporting to global markets. We are proud to be associated and working with Novo Nordisk, a global leader in many areas including diabetic insulins. We hope to build off this initial foundation with Novo Nordisk to further expand access. In addition, this development is important to retaining critical skills and developing new talent on the continent and to diversifying global supply chains to ensure security of supply and improved patient access. To this end, the technical and skills transfer agreement is key and an endorsement of Africa’s role in the regional and global pharmaceutical supply chain. We thank Novo Nordisk for this demonstration of their confidence in Aspen, together we can positively impact the millions of patients most in need.”

GLOBALLY RELEVANT Working hand-in-hand with other industry leaders from around the world continues to drive Aspen’s brand reputation and quality output, and this strategy is showing no signs of slowing soon. Earlier in the year, Aspen Healthcare FZ penned a deal with Saudi Chemical Company Holding in the Middle East to partner on manufacture and distribution in Saudia Arabia and beyond.

“We are excited to announce our strategic collaboration with Saudi Chemical Company Holding and its subsidiary AJA Pharma.

This agreement endorses Aspen’s continuous commitment to align with the Kingdom’s 2030 vision and our drive to provide high quality healthcare products to patients in the Kingdom, the Middle East region and beyond,” said Aspen Healthcare Regional CEO for Middle East, North

Africa and Turkey, Daniel Vella Friggieri.

For Africa, and for the vast supply chain and customer base that relies on Aspen to thrive, international expansion is very welcome. Following the opening of the new facility in Gqeberha in 2021, the goal has always been to utilise capacity for the production of medicines that will benefit the continent.

That plan continues to rollout.

“We continue to actively explore additional contract manufacturing opportunities as well as further product portfolio enhancements to further drive growth into the future,” concludes ever optimistic Saad.

ASPENPHARMASA.CO.ZA

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LIFE HEALTHCARE

Investing in the Future of Quality Healthcare PRODUCTION: James Davey

One of South Africa’s leading listed healthcare organisations, Life Healthcare, is investing in the long -term future by continuing to acquire strong businesses that will result in positive outcomes for patients. It’s a solid business model that shows no signs of slowing but provides certainty where it is most needed.

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INDUSTRY FOCUS: HEALTHCARE

//

Perhaps the most certain thing in business is that one industry above all others does not welcome uncertainty – healthcare. When people are most in need there is no room for confusion, hesitation, vagueness or doubt.

Thankfully, in South Africa, there is world-class private healthcare, and the industry is home to some of the very best. Large, modern, well-equipped healthcare facilities are what to expect from the private sector. Even with a shortage of qualified nurses in the country, the private space continues to thrive because of short waiting times and exceptional outcomes.

A small number of large businesses make up the private space, and each is highly regarded with patients paying a premium for the best service available, often in spaces set amongst rose gardens, or overlooking

36 / www.enterprise-africa.net

the ocean, or nestled in cosy valleys with mountainous backdrops.

Life Healthcare is one of the industry leaders, with operations across 13 international markets and 64 hospitals in South Africa. The company has 4000 specialists in its network and treats 600,000 in-patients annually.

To eliminate uncertainty and provide patients with total clarity at all times, Life Healthcare has worked hard to build scale and value. Since establishment in 1983, the company’s reputation has boomed thanks to a focus on quality service delivery.

Going forward, the company’s growth strategy is multifaceted but incorporates merger and acquisition (M&A) activity as a key pillar. Recent acquisitions have strengthened the brand significantly and have allowed for aggressive growth in areas previously untapped by Life

Healthcare. Importantly, these developments also contribute to strong financial performance which allows for ongoing innovation and growth across the company.

NUCLEAR IMAGING In March, Life Healthcare acquired the non-clinical imaging operation of TheraMed Nuclear in Gauteng. By using specialist technology and nuclearbased medicines and molecules, the company can detect and treat various organ dysfunctions and cancers.

Three sites in Gauteng provide SPECT imaging, similar to PET-CT but using radiotracers and special cameras to create 3D imagery of internal organs.

“PET-CT scans are important to help clinicians determine if a tumour may be cancerous, whether cancer has spread to other parts of the body or how well treatment is working,” said Group Chief

LIFE HEALTHCARE

Medical Officer, Dr Mark Ferreira.

Life Healthcare CEO, southern Africa, Adam Pyle added: “The acquisition further entrenches our commitment to investing in medical imaging in South Africa, with our capability now extending into nuclear and molecular imaging. As part of this journey, we plan to drive improved accessibility for clinicians and their patients in earlier detection and more accurate treatment planning for cancer patients across the country.

“This first nuclear-medicine acquisition for Life Healthcare serves to complement the expansion of our Oncology services and furthers the growth in our nonacute business, following our acquisitions of the non-clinical operations of East Coast Radiology and Eugene Marais Radiology.”

Ultimately, greater access to early diagnosis will be the outcome, and this will save lives.

“We believe that including imaging and diagnostics within our business operations aligns well with our core operating model and strategic objectives. In time, we hope our efforts will expand access to quality care for all South Africans, especially critical care of oncology patients,” said Pyle.

Growth through acquisition can mean cheaper back-office functions after a combination of existing portfolios, but the key here is synergy in service provision.

KIDNEY CARE In May 2023, Life Healthcare was again on the growth path, acquiring the renal dialysis clinics of Fresenius Medical Care. 51 clinics across the country will

join Life Healthcare’s existing renal care programme where positive outcomes are the number one goal. Fresenius Medical Care had many people already mid-programme and this, said Pyle, was essential to continue.

“We are delighted to have been entrusted by Fresenius Medical Care to take over the renal care of their patients in southern Africa which will complement our existing renal dialysis services. As part of Fresenius Medical Care’s global dialysis provider portfolio optimisation, Life Healthcare will take over most of their renal services in southern Africa. It is therefore essential that their existing patient care plans continue uninterrupted and hence the role Life Healthcare has committed to.”

All patients and employees were transferred to Life Healthcare, with a 12-month onboarding

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INDUSTRY FOCUS: HEALTHCARE

process established to ensure a smooth process.

Dialysis is a process usually started when kidneys fail. Toxins and fluids build un in the bloodstream because the kidneys are no longer capable of filtering the way they should.

Currently, the process is intrusive and uncomfortable and significant care must be taken to ensure relief.

At the end of 2022, a special new unit was launched at the Vincent Pallotti Hospital in Cape Town. The Ethos™ radiotherapy system uses artificial intelligence to adjust treatments depending on the needs of the patient. This precision approach better targets tumours and reduces the radiation dose. It also improves efficiency across decision making, speeding up processes and removing some uncertainties.

“The Ethos™ radiotherapy system offers a faster and more personalised,

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targeted approach to radiotherapy treatment which means we really are placing the patient at the centre of care.

It’s our way of navigating our patients into the future of oncology care as we continue to live our purpose of making life better,” commented Pyle.

Again, the company is investing in best-in-class technology to better the lives of patients and provide stronger, more reliable treatment, that brings positive outcomes, quicker.

ROBUST PERFORMANCE To fuel further expansion, Life Healthcare listed on the A2X in December 2022. Primarily listed on the JSE, this secondary listing on Sandton’s A2X follows in the footsteps of other healthcare companies looking for additional capital raising instruments.

“By making use of innovative technology and efficiencies we are able to provide our patients with quality

care and improved outcomes,” said Group CEO Peter Wharton-Hood.

“Our listing on A2X extends this principal to our shareholders by providing them with an alternative platform, that, through the use of the latest high-performance technology, offers savings in the form of price improvement and lower exchange fees whenever they transact in Life Healthcare shares,” he added.

All of the progress in the past 12 months have made for significant progress financially. In May, Life Healthcare announced its results for the six months ending 31 March 2023.

Group revenue was up by almost 13% to R15.3 billion and operating profit rose by 13.5% to R2.7 billion thanks to strong performance across acute and non-acute business.

“We have again shown solid operational performance across all markets, maintaining momentum, and

LIFE HEALTHCARE

// IT’S OUR WAY OF NAVIGATING OUR PATIENTS INTO THE FUTURE OF ONCOLOGY CARE AS WE CONTINUE TO LIVE OUR PURPOSE OF MAKING LIFE BETTER // making steady progress in executing on our long-term strategy. We remain wellpositioned for sustainable growth in 2023 and beyond,” said Wharton-Hood.

Revenue was up by 11.6% and EBITDA grew by 13.5% year-on-year.

Acquisitions and new partnerships were vital in this strong performance.

“Our operations saw a good increase in underlying activities, whilst improved occupancies resulted in good revenue growth and improved margins.

Increased activity came off the back of normalising operations after Covid-19, and the successful completion of our network deals. We launched our valuebased, integrated care product for renal dialysis in January 2023, to provide more consistent, holistic, and cost-effective care for patients and negotiated our first renal value-based contract with one of South Africa’s leading medical schemes. These results include an additional cost of R40 million related to increased diesel usage as a result of the electricity challenges,” said Pyle.

Going forward, progress will continue and uncertainty for patients will be minimised through consistent delivery of modern services. In turn,

the company expects to continue delivering strong results.

“We are bullish about seeing further volume growth in the remainder of the financial year and expect to see paid patient days (PPD) volumes grow around 10% in southern Africa for the full year. We also anticipate scan volume growth of between 6% and 8% in our UK and European diagnostic imaging market. The Group remains in a strong financial position, with net debt to EBITDA at 2.17x, compared to the 2.03x as at 31 March 2022,” said Wharton-Hood.

WWW.LIFEHEALTHCARE.CO.ZA

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AVIS SA

Successfully Connecting Humanity PRODUCTION: Timothy Reeder

Now driving forward under the Zeda brand, listed on the JSE in December 2022, Avis South Africa is reinforcing its position as an industry leading mobility provider with interests in car rental and fleet management, globally recognised for quality.

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INDUSTRY FOCUS: AUTOMOTIVE

//

The journey of leading car rental business Avis South Africa continues to accelerate as it navigates the chicanes of a challenging economic conditions and new corporate structure. Rent a car is one of the largest division of the business, with strong operations across Fleet and Car Sales.

Heavily reliant on tourism, the rent a car business, Avis SA, had to calculate a new route when the pandemic hit, and CEO Ramasela Ganda – who joined the company four days before national lockdowns and tourism restrictions were

announced in South Africa – was forced to implement several strategic initiatives to keep the engines ticking over.

The success of the company during this time – supporting delivery services, acquiring dormant fleets, changing vehicle profiles, and splitting each market based on regional constraints – displayed power and strength when it was sorely needed with competitors and industry peers crashing or stalling.

This energy and success during the toughest of times saw Avis SA lauded by its major shareholder,

BEING A STANDALONE BUSINESS WILL ENABLE BETTER FOCUSED EXECUTION OF OUR INTEGRATED MOBILITY STRATEGY, WHICH CATERS TO THE EVOLVING CUSTOMER’S NEEDS IN OUR MARKETS OF OPERATION 42 / www.enterprise-africa.net

Barloworld. As the pandemic eased, Avis quickly took pole position in the local market and began to realise the fresh importance of connecting people with each other and with the country.

UNBUNDLING Internally, a discussion began around unbundling Avis from the Barloworld portfolio and allowing the company to take a new path. All were certain that international tourism would return to the market in time, and this is where Avis thrives. In the first four months of 2023, 3.7 million international visitors passed through South Africa’s ports of entry. Most of the entrants came from the continent, but the rising numbers are encouraging for all.

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Continued from page 42 become part of a new structure following the unbundling from Barloworld in November 2022.

“This is a bittersweet moment for Barloworld,” admitted Group CEO, Dominic Sewela. “While we conclude our restructuring and portfolio shift to defensive, relatively asset light and cash generative industrial sectors, based on a business-to-business operating model, we are also letting go of an incredibly strong business whose adaptability has taken it from strength to strength.

“This decision was taken in the interest of maintaining value for our shareholders. As two separate companies each business will be able to operate in a more focused and efficient manner – actively pursuing our growth ambitions in different sectors and verticals.”

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Ganda was understandably excited, steering the company towards a bright future with a full tank of optimism in the form of around 1700 knowledgeable employees, a fleet management and leasing portfolio of more than 250,000 vehicles, and a brand recognised around the world for quality.

“This is the beginning of an exciting chapter for us as we pivot from Barloworld with a solid foundation,” she said. “Being a standalone business will enable better focused execution of our integrated mobility strategy, which caters to the evolving customer’s needs in our markets of operation. We provide an array of mobility solutions including car rental, fleet management and leasing as well as car sales in 10 countries.”

Avis SA became part of Zeda, a holding company with the rights to the Avis and Budget brands. Avis is the oldest car rental business in the

country and Budget has a strong network, with positions at most airports and a fantastic fleet.

“Through these operations, which have downstream benefits for the southern African economy and play a vital role in key value chains and sectors, Zeda demonstrates its role as a catalyst of economic growth,” added Ganda.

The purpose of Zeda is ‘connecting humanity’. To do this, mobility solutions will bring people, businesses, opportunities, and industry sectors closer together. The name has heritage after Zeda Car Rental was established in Bloemfontein in 1967 with just three cars, acquired by Avis just a year later.

FRESH JSE LISTING After unbundling, Ganda’s attention turned quickly to the JSE and a fresh listing, attracting new investment to Zeda – pedal to the metal.

AVIS SA

Previously the CFO at Ekurhuleni Metro and Executive at Barloworld Equipment, she is an accounting and finance professional by training.

After much preparation and planning, the listing hit the JSE’s main board on 13 December 2022 promising investors a company at the forefront of mobility in southern Africa.

“Today is an important day in the evolution of not only our company but the future of mobility for the region. We have come full circle as we come back to the JSE as Africa’s largest and only integrated mobility solutions provider,” said Ganda.

“Our 55 years of operating have seen us navigate various trends in the operating environment. As a standalone business, we will be more agile in continuing to anticipate and respond to these trends including the current positive changes that

we are seeing in mobility and more specifically the changes we are seeing in customer behaviour. Our Avis Budget product proposition is one that is well positioned to leverage these opportunities and drive greater adoption of the usership economy.”

The momentum of Zeda through a busy period has been strong and Avis and Budget have both been allowed to accelerate. This was clear in the company’s financial results for FY 2022 which showed an increase in revenue of 6.6% to R8.1 billion, an increase in EBITDA of 28.1% to R2.8 billion, and a 52.8% increase in operating profit to R1.3 billion. Interim results for the six months ending 31.03.23 also revenue up 20% and operating profit up 25%.

“We are resolute in our commitment to deepening the adoption of the usership economy through delivering integrated mobility solutions. We are

executing our strategic pillars under the themes fix, optimise, and grow to unlock value for shareholders,” said Ganda.

Importantly, the services delivered by the business and the interactions with Avis staff around southern Africa will continue to be the best in the industry.

Customers will receive great cars, at competitive prices, through a well-oiled system that allows for international tourists to experience the same level of excellence they could expect in New York, London, Sydney, or Tokyo. This will continue to drive financial performance, and all stakeholders will benefit.

“We have a beautiful country for people to explore,” Ganda smiles.

WWW.AVIS.CO.ZA

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KCB GROUP

KCB Promises Better for People PRODUCTION: James Davey

‘For People, For Better’ is the new motto for leading East African financial services business KCB Group. By bringing all stakeholders closer together through a new purpose, the company is already achieving strong results as it looks to become the preferred financial solutions provider, achieving results for all shareholders.

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INDUSTRY FOCUS: FINANCE

//

Kenya has long strived for a repositioning of its economy, becoming more diversified and more open to fresh opportunities to participate at continental and global level. Its financial services sector is a perfect example of success.

Growing from a primary resource based economy, characterised by agriculture, forestry, fishing, mining, and others, the economy now boasts important secondary and tertiary industries based around tourism, manufacturing, and financial services.

This financial services ecosystem has gained world-famous status thanks to innovative, localised solutions such as M-PESA and other mobile money transfer systems. But the economy was rocked by the Covid-19 pandemic and dropped from previously growing

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at an average of 5.9% year-on-year between 2010 and 2018 to achieving just 4.8% GDP growth in 2022. While many expect the East African nation to return to pre-Covid growth levels over time, the economy is now reliant on strength of world markets in Europe, North America, and the Far East. As planned, Kenya is an important African player on the global stage, but continuing innovation and progress is the next major challenge.

At the heart of the financial

services space in Kenya and East Africa is KCB Group. A leading commercial bank with savings, loans, insurance, investments, debit and credit cards, and more. Headquartered in Nairobi, the company is one of the largest commercial banks in the country and has been awarded for customer service, innovation, and responsibility in the past two years.

Subsidiaries cover much of East Africa with KCB Banks across Kenya, Burundi, Rwanda, South

// WE HAVE WITNESSED NOTABLE IMPROVEMENT IN ECONOMIC ACTIVITIES OVER THE PAST TWO YEARS POST THE PANDEMIC, ALTHOUGH MACROECONOMIC UNCERTAINTIES PERSIST //

KCB GROUP

Sudan, Tanzania, Congo, and Uganda. The company’s employee count is above 11,000 and profits were around KShs 16.1 billion at the end of the first half of 2023.

BRAND PURPOSE Driving the boom of formal financial services and fintech in the region, KCB has become increasingly important from a job creation and CSR perspective. With roots going back more than 125 years, the Kenya Commercial Bank that is recognised today was officially branded in 1970 when the mantra of ‘being closer to the people’ is adopted. That ideology has never been forgotten and today the company has more than 200 branches and more than 380 ATMs all over Kenya, and more than 60

branches across other nations.

This network has allowed for KCB to build a customer base of 32 million people. nurturing and building ion this success, and assisting in the ongoing diversification of the economy in East Africa, KCB adopted a new Brand Purpose – ‘For People, For Better’. This philosophy, adopted in 2022, involves a new set of values that surround the need to be connected, courageous, and closer. Group CEO Paul Russo embraced the fresh purpose and said it would have an impact on the growth of businesses across the region.

“Through this purpose, we seek to position our brand as the region’s undisputed financial services leader which puts people and their diverse needs first, to make life better for the millions of customers we serve,” he said.

“To achieve this, we will be guided by our values of being closer, connected, and courageous anchored on the pillars of customer obsession, productive culture, and sharper execution.”

The talent war underway in Kenya is also addressed by the new ideology as KCB looks to position itself ahead of others, attracting and retaining top people.

KCB employees quickly bought into the purpose and the company moves forward as one, focussed on achievement of positivity in challenging conditions.

“We entered 2023 with positive momentum and we shall build on this and ensure that we make significant step change in culture and performance, across all our business units,” Russo added.

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INDUSTRY FOCUS: FINANCE

“Our unwavering commitment to customer centricity will continue to drive our vision and strategy.

Our focus to deliver on our strategy in 2023 will be underpinned by execution of embedding of customer obsession, new to bank customer acquisition, cross selling of products, being digital to the core, enhancing operational efficiency, prudent asset quality management, and delivering

a tangible culture transformation.”

Taking his role in May 2022, Russo has worked through numerous roles within KCB and understands the importance of the business to the wider East African economy.

“We have witnessed notable improvement in economic activities over the past two years post the pandemic, although macroeconomic uncertainties persist,” he said. “Across

// THROUGH THIS PURPOSE, WE SEEK TO POSITION OUR BRAND AS THE REGION’S UNDISPUTED FINANCIAL SERVICES LEADER WHICH PUTS PEOPLE AND THEIR DIVERSE NEEDS FIRST, TO MAKE LIFE BETTER FOR THE MILLIONS OF CUSTOMERS WE SERVE //

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the East Africa region, the rally in economic growth which started in 2021 continued throughout 2022 albeit at a slower pace. This expansion was underpinned by heightened business activities and a rebound in key sectors.

Our role as KCB was to support the recovery of personal customers and businesses across the region to enable them to bounce back stronger. On this front, we were able to achieve success.”

STRONG RESULTS In August, the company’s half yearly results for 2023 were positive and showed strength through conviction as the new brand purpose combined with ambition and historic success came together to demonstrate what is possible.

54% growth in total assets to KShs 1.86 trillion helped to fuel net profit

KCB GROUP

figures of KShs 16.1 billion. Revenue also grew by 22.2% to KShs73.1 billion.

Russo was delighted, saying: “Despite a challenging economic environment across our operating markets, the business remained resilient delivering a strong balance sheet and increased contribution from regional businesses.

Profitability was under pressure in the first half from increased funding costs on higher market deposits rates, prudent provisioning on legacy credit facilities, and provisions for legacy legal claims at NBK. “Looking ahead,” he added, “noting the actions we have taken and with significantly improved liquidity, business focus is on accelerated performance in the second half of the year while supporting the distressed customers.”

Group Chairman Joseph Kinyua

also focussed on the potential for future growth, saying: “The Group is well-positioned for future growth, riding on its solid governance structures and digital capabilities, strong regional presence and committed staff to support customers and other stakeholders. We are deliberate in making a meaningful transformation for communities and making a greater contribution towards economic progress across markets.”

One area of particular strength was highlighted in September when KCB was labelled Best Bank in Auto Finance for 2023 at the Automotive Industry 100 Awards (AIA). Financing of cars, trucks, buses, and related equipment is a core focus with KCB’s Asset Finance and Insurance business.

Because of such strength in these areas, KCB remains one of Kenya’s most

resilient financial service providers.

Now representing around 7.5% of GDP in Kenya, and growing in other countries, banking and financial services is woven into the economy like never before, and this is good thing for the transformation of the region. With KCB driving change, and always pushing for quality across all metrics, the industry has a fierce and passionate stalwart that will ensure progress. The new Brand Purpose will push KCB into a new era with strength and Paul Russo is excited.

“The KCB lion will continue to roar, and the roar will be loud and undisputed, For People.

For Better,” he said.

WWW.KCBGROUP.COM

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MONTIGNY

Growing New Standards for Commercial Forestry PRODUCTION: Sam Hendricks

Eswatini’s Montigny Investments continues to lead the way in Africa, and globally, around sustainable forestry, creating value from every part of a tree, and building a culture of excellence for the large local workforce.

//

As a leading, sustainable source of construction materials and other products, wood is often overlooked. Iron, steel, plastic, and concrete are the modern choice of the builder. Easy, flexible, premade, predrilled, they are mass produced and strong, and therefore in high demand. But wood has always been the cornerstone of strong construction, and importantly it has always been a renewable and organic product.

In southern Africa, large commercial forests are not common and much wood for manufacturing is imported. But in

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Eswatini, surrounded by South Africa’s Mpumalanga and KwaZulu-Natal as well as Mozambique, forestry is big business.

Agriculture is one of the country’s big contributors to GDP and forestry is a big part of this critical sector. The fertile land is fantastic for growing trees, and strong wood goes into construction boards, scaffolding, posts, mining braces, poles, chip boards, timber planks, packaging crates, pulp and biomass, and related products including essential oils.

The industry leader in this space is Montigny Investments. A 100% Eswatini company, Montigny employs thousands

of locals and creates many opportunities through its value chain. It manages more than 80,000 ha, with 55,000 under active timber management. The company has eight processing plants for different products, transporting more than one million tons of timber each year.

The group is made up of Montigny Usutu, a large man-made forest estate resource purchased from Sappi in 2014; NHR Investments, the South African trading arm of the business distributing in SA and abroad; TDM, a trading arm responsible for timber products and biomass for export markets;

INDUSTRY FOCUS: FORESTRY

and Swazi Poles, a eucalyptus pole manufacturer with SANS certification.

At Montigny, the value of wood has never been questioned and its obvious benefits in construction, infrastructure, and a range of other sectors are well-known and well-catered for.

“What makes us stand out from our competitors primarily is the way in which we add value to every part of the tree. We are able to extract and utilise up to 95% of the tree’s value because of the breadth of our markets,” says CEO Andew Le Roux.

STANDING TALL Today, the company is the largest private, integrated timber company in southern Africa and turns over more than E1 billion. This formidable organisation flies the flag for Eswatini and has, since 1997, grown into

a respected corporate citizen.

“We are committed to sustainable, profitable and ethical business practices, that benefit the local economy and add value to the Eswatini Nation,” Montigny states. “[We have] grown from a small family business into the largest private timber owner-operator in Southern Africa and we service approximately 40% of the regional wet-off-saw timber market, and have diverse timber-trading interests in South Africa, Eswatini, Mozambique, Namibia, Angola, Zambia and Japan.

“The Usutu Forest Complex represents one of the largest, continuous man-made forestry estates in the world, with extensive and well-developed infrastructure and the shortest average stump-to-mill distance in the region.”

Sustainability is high on the

agenda and was installed by Founder Neal Rijkenberg as an underpinning principle in the business which has been nurtured over the past quarter century.

Land is monitored carefully, fire safety is always advancing, products are cut and transported ethically, and new forest zones are continually planted. Today, Montigny adds value to products locally while creating fuel for local biomass plants.

“We are deeply committed to sustainable forestry. We are careful to protect biodiversity and delicate ecological areas within our forests. As much value as possible is extracted from felled timber, and the remaining waste is used to generate energy,” the company says.

SUSTAINABILITY IS KEY By utilising sustainable principles, the company is able to maximise all that it works with and that is what makes it an industry leader. Swazi Poles is the perfect example of where the company has adapted to sustainably meet the needs of a market. Demand for overheard line support from SADC nations, as they power up metropolitan and rural areas, has helped this division to thrive.

“We use only the best quality matured gum trees. Pure Eucalyptus Grandis and Grandis Clone in the form of Eucalyptus Grandis x Urophylla. Our timber originates from sustainable forest and we ensure a full grading process as to deliver best quality.

“We offer a full range of building and fencing poles, as well as transmission poles. Our procurement is in line with our orders from our own

// THE USUTU FOREST COMPLEX REPRESENTS ONE OF THE LARGEST, CONTINUOUS MAN-MADE FORESTRY ESTATES IN THE WORLD // 54 / www.enterprise-africa.net

MONTIGNY

sustainable Eucalyptis plantations. We have active sales agents in the field that can assist on various levels of requirements as for the construction of shade netting of various agricultural products,” the company says.

By understanding the unique needs of the market in Eswatini and around southern Africa, the company can quickly build relationships and glean knowledge of what is required.

This allows for informed planting now, and additional value add on products already heading to mills.

“Montigny owns four sawmills at Bhunya and Nhlangano, one Essential Oil plant, one chipping plant, one chipboard plant and a rented sawmill at Bulembu,” it boasts.

“We take an innovative approach

to product development and supply.

We actively focus on extracting the maximum value from the timber at our disposal, and have extended our product range accordingly, from standard lumber supply to finished products.

Competitive pricing and our commitment to excellence, in both product quality and service delivery, has seen us establish long lasting relationships with suppliers, service providers and clients around the world.

Our customers include the planking industry (for both industrial and fine carpentry use), pallet users, the mining industry, charcoal consumers, paper manufacturers, furniture makers and construction companies.”

By 2050, the demand for wood products will grow by 54%. Global

climate targets will be a part of the increase as wood is viewed as a replacement for plastics and demand continues to rise in construction and energy. But forests cannot cope alone – too much is already being lost or logged illegally. Sustainability is the key to the future of the industry, and the most important factor in building a resilient forestry sector globally, to help in the battle against climate change and nature degradation. Montigny is an example to follow and is leading the way in southern Africa when it comes to responsible, sustainable forestry management.

WWW.MONTIGNY.CO.SZ

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LESEDI

Empowering Africa with Innovative Engineering PRODUCTION: Sam Hendricks

Lesedi is a major engineering, procurement and construction company, having successfully completed numerous key projects in the nuclear, industrial power, mining, and oil and gas environments. A thriving home for engineers, Lesedi is becoming essential in solving the regions infrastructure problems.

//

South Africa’s engineering sector is in something of a transition as the needs of the country and the problemsolving nature of engineers are not coupled. An energy network in crisis, with power supply failing to meet demand, and a shocking decline in the number of engineers staying in the country is damaging the industry when it is sorely needed.

According to the South African Institution of Civil Engineering (SAICE),

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the infrastructure issues in the country are exacerbated by the number of engineers leaving for foreign shores.

SAICE’s Infrastructure Report Card (IRC) suggested at the end of 2022 that too many senior engineers in the civil sector had left the industry, leaving gaps in skills and stalling younger talent development due to lack of mentorship.

But while the problem is a national issue, not all companies are downtrodden by negativity. In fact, South Africa remains home to some

of the world’s best engineering talent thanks to the mining, construction, and power generation industries. Within some companies sits a base of engineers that are skilled, knowledgeable, and proactive – it’s a hotbed of innovation where world-class standards are not only abided by but advanced.

Lesedi is one such business.

Located in Century City, Cape Town, the company was known for many years as a services provider to the nuclear energy space, specifically for Eskom at

INDUSTRY FOCUS: ENGINEERING

the Koeberg nuclear plant. But today, Lesedi (the Sesotho word for light) is a multidisciplinary, multi-industry, multi-skilled engineering, procurement, and construction company, responsible for major projects across power generation, mining, and oil and gas.

At Lesedi, the engineering light shines brightly, and few are looking to leave South Africa when the country needs them most. With more than 300 employees, the history of the company is deeply rooted alongside Koeberg nuclear power station. Four years after construction began in Cape Town in 1976, Lesedi Nuclear Services was established. In 1984, the first two units began commercial operation at Koeberg and Lesedi acted as a leading engineering partner throughout. By 2001, the company was well-recognised and struck up a partnership with French AREVA NP selling a 45% and starting a BBBEE company. In 2006, AREVA acquired a further 6% and the company

began to diversify and become involved in other energy infrastructure projects.

After a construction boom in the lead up to the 2010 FIFA World Cup, Lesedi was joined by Group Five and J&J Group in 2012, bolstering skills across the industry. By 2018, the company was well-established and proven, and AREVA (now Framatome) remains the major shareholder. “We are a home grown South African company, ready to take on the next challenge for Africa.

We are a company born in Africa, for Africa, empowering Africa. With Lesedi evolving into a firmly established African company, the time has arrived to rebrand the company to reflect its purpose and vision for the future. Lesedi therefore launches its new identity and is on a journey of transformation,” the company said recently as it launched a new brand identity.

With this fresh image, Lesedi now aims to be the leading EPC enterprise on the continent. Solving

complex challenges, while creating the opportunity for the people of Africa to empower, energise and enrich the continent.

TRADITIONAL ENERGY Currently, South Africa’s power generation mix comes mainly from coal with the balance made up of oil and nuclear, and a minority from hydro power and wind or solar or other renewable sources. While this is set to change, the swap will be slow. However, Lesedi wants to participate in the transition and use its experience across the energy sector to fuels South Africa’s future.

At Koeberg – Africa’s only nuclear power station, one of the world’s safest – Lesedi has been a key supplier of maintenance products and services for many years. The company built two tanks for the storage of borated water that is used in the reactor cavity and spent fuel cooling system. In 2018, these tanks were installed on site after being manufactured locally. 12 metres in diameter and 18 metres high, these large tanks were made from high-grade stainless steel and required specialist equipment and knowledge to install, removing old units at the same time through a period of planned outage.

“Lesedi has been executing upgrade and maintenance projects at Eskom’s Koeberg Nuclear Power Station for almost 30 years. This work includes having completed over 150 modifications on the plant and is supplemented by nuclear services

// LESEDI HAS BEEN EXECUTING UPGRADE AND MAINTENANCE PROJECTS AT ESKOM’S KOEBERG NUCLEAR POWER STATION FOR ALMOST 30 YEARS // 58 / www.enterprise-africa.net

LESEDI

contracts with a number of foreign nuclear power stations located in England, Brazil, China, France and the USA,” the company says.

At the Salem nuclear power station in New Jersey, USA the Lesedi team again proved its value in the nuclear sector when it assisted a major team effort to replace baffle bolts around a core barrel. This is potentially a dangerous and risky manoeuvre where every eventuality must be mapped out. Working with local teams, as well as site owners, Lesedi’s experience in Cape Town was a major part of the project which was completed event free. Both projects allowed for the stations to be returned to action quickly, providing minimal CO2 energy to large populations.

RENEWABLE SOURCES In alternative and renewable energies, the company is also a forerunner, leading the way in engineering excellence through application of world-class standards and deployment of industry leading suppliers from steel and raw materials to fixings and software. At the Palmiet Pumped Storage Scheme in the Western Cape, Lesedi helped in the replacement of four 35-bar reciprocating air compressors. Lesedi had to design, manufacture, test, supply, deliver, instal and commission of the four air compressors along with associated equipment that allow the system to function efficiently and effectively.

In solar energy, the company is a trusted partner of Exosun – a global solar technology provider. The company’s clever engineering allows solar panels to follow the line of the sun and maximise output. In southern Africa, Lesedi will work on solar farms with to manage and maintain Exosun infrastructure and ensuring the power of the sun is harnessed in full.

Already active the Namibian desert, this technology will expand across the region as the obvious benefits of solar in southern Africa begin to rollout.

Even biomass projects are undertaken by Lesedi. These types of project need heavy engineering to make sure things can move, heat, cool, and digest correctly. By burning wood and other organic matter, CO2 emissions are produced by the fuel source is entirely renewable. It is expected that around 80% of Africans rely on some form of biomass for their energy needs and this will be the case the next decade.

Lesedi worked with partners in Ghana to produce biogas from cocoa husks as the world’s second largest coca producer looks to add new sources to its network.

“Our experience supporting the development of REIPPP biomass projects as well as other biomass, waste to energy, coal to power, solar and gas and oil to power projects has led to the development of industry partnerships that improve the development process,” the company states.

With so many projects across so many different areas of expertise, Lesedi is truly a shining light in the South African engineering space, not fearful and distracted by negativity, but ambitious and creative, making things happen, and trusting engineers to solve problems. Here, engineers have freedom to achieve and Lesedi continues to pave the way for new engineers to enter the market and learn, ultimately solving South Africa’s infrastructural challenges.

“We build relationships, reputations and confidence by combining a can-do attitude with engineering expertise in pursuit of empowering Africa. Our purpose is to create that which empowers others to create,” the company says.

WWW.LESEDINS.CO.ZA

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SAOTA

Creativity and Originality Key to Global Growth PRODUCTION: Sam Hendricks

Legendary architectural firm SAOTA, established in Cape Town, is now a world-recognised for being to imagine what others cannot. The creativity flowing from this industry leader is helping to remind that South Africa is a design and innovation centre of the world, and can contribute in no small way on the global playing field.

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Images © SAOTA

INDUSTRY FOCUS: ARCHITECTURE

//

Sometimes you know something is special, not because of the way it looks or how much it costs, but because of the feeling it gives you. To achieve this the only common element – whether its art, food, property, fashion, music, or something else – is creativity. Using the mind, harnessing imagination, generating ideas to solve a problem, however creativity occurs, nothing can be special without it.

In architecture, creativity is indispensable. According to Einstein, it’s about ‘seeing what other see and thinking what no one else ever thought’. When creating original ideas for property, without a creative mind, there will be no uniqueness.

And that is what people pay for.

In South Africa, Stefan Antoni

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established his architectural firm which is now SAOTA based on the delivery of creativity above all else. In fact, there’s a popular story about the construction of the company’s head office in sunny Cape Town where the designs had been completed and construction was underway. Contractors arrived with cranes to complete the installation of a special roof. But Antoni halted progress. He saw that the roof would partially close off views of Table Mountain – not an option for the creative. He redesigned the concept and scrapped the old roof – at cost – to ensure the team at SAOTA would always have the best, uninterrupted view of Cape Town’s jewel.

Obviously, creativity cannot be tamed or shackled; it cannot be obscured or masked. For creativity

to thrive, there has to be a handsoff approach, one which allows the imagination to run wild, with quality end product in mind rather than numbers and spreadsheets.

This is why SAOTA has been so successful and how it has grown out of South Africa to become a powerful player in international markets, boasting some of the most soughtafter minds in the world, and counting some of the most beautiful and acclaimed properties in its portfolio.

WORLDS FINEST In South Africa, SAOTA is the practice behind the Ocean View Drive (OVD) 919 building in Bantry Bay tucked neatly behind Lion’s Head with views out across the South Atlantic, over to Robben Island, up to the 12

SAOTA

Apostles, and through Camps Bay. The 5000m2 home claimed the 2016 Architizer award and the 2016 Lafarge Artevia Decorative Concrete Award in its size category. When marketed in 2016 a Germany family fell in love with the views and space and the sale made R290 million - then the most expensive home on the continent.

Linear concrete structures act as frames for the various views around the property, and the openness allows the nature of the cliffside position to creep into the space. Riveted into the land between hilltop and sea, this famous space is perhaps the crowing SAOTA project in the Cape depending on your views around creativity.

Some look at Kloof House, also in Cape Town, looking over the city bowl as a true display of creativity. Unlike any other building in the region, this large

// THE DESIGN OF THE PROJECT WAS INSPIRED

BY THE SURROUNDING LANDSCAPE, WITH A FOCUS ON USING NATURAL MATERIALS AND CREATING A SEAMLESS CONNECTION BETWEEN THE INDOOR AND OUTDOOR SPACES // development is designed to take in the most of the surrounding landscape and has a spectacular clerestory-type roof that allows light and dark into the space.

Arranged across three levels, each floor has access to gardens or courtyard, and the hillside pool allows for water to be connected with greenery. This is a signature of SAOTA and allows clients that feeling of connection to nature. A pool like this, and a rooftop made in this way are not necessary,

but the creativity on show highlights a company that is not willing to compromise on delivering special.

But then SAOTA’s Buffelsdrift project, more traditional and complex than OVD 919 or Kloof House, is for some the epitome of creativity. On a site with a number of Cape Dutch buildings made from traditional materials using heritage methods, SAOTA was part of a team that handled restoration of the farm in the heart

GLOBAL EXPERTISE. LOCAL KNOWLEDGE. With a legacy of over 240 years, our 4,000 collaborators located in 40 countries have made a difference to our clients by delivering high quality outcomes in the built environment through advice focused on cost, quality and sustainability.

By combining fresh perspectives with sector expertise, Rider Levett Bucknall Indian Ocean t/a RLB Hooloomann has become a leading independent organisation in Project and Construction Management, Quantity Surveying, Cost and Commercial Management and Advisory Services. Committed to creating value for our clients, we are creating a better tomorrow through flawless execution today.

CONTACT US Tel: +230 467 7000 | Email: contact@io.rlb.com REGIONAL OFFICES | Mauritius | Maldives | Seychelles | Sri Lanka AREA OF OPERATIONS | Sub-Saharan Africa | India

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INDUSTRY FOCUS: ARCHITECTURE

of the productive agricultural area of Ladismith in the Western Cape.

The main house and the wine store were refurbished to immaculate standards, bringing SAOTA two fresh awards – the 2021 CIfA Award for Architecture and the 2022 Corobrick SAIA Award of Merit.

“The design of the project was inspired by the surrounding landscape, with a focus on using natural materials and creating a seamless connection between the indoor and outdoor spaces. The buildings were built from locally sourced stone and timber, and the large windows and open-plan design allow for ample natural light and stunning views of the surrounding mountains,” the company said.

GLOBALLY RECOGNISED SAOTA is one of the few modern SA-born companies to truly and successfully expand its brand beyond South Africa’s borders. It’s excellence in

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delivery and quality client experience is well-documented, but it is likely the level of creativity present in the business which has allowed it to garner such a widespread reputation.

In July 2023, the company had two projects shortlisted for awards at the World Architecture Festival (WAF). Firstly, in the category of Future Project Leisure-Led Development, the Wuxi Film Club project in China was nominated for excellence, drawing inspiration from a Hollywood landscape where architectural elements unfold like a movie plot.

Secondly, the Silver Mountain project in the Aspen Hills, has been recognised as a finalist in the Future Project House category. Here, the company again pulls inspiration from nature and designed the slanted roof structure to line up with the mountain range from which it projects.

“We look forward to participating in the festival and showcasing

our innovative designs alongside other exceptional projects from across the globe,” SAOTA says.

From west to east, SAOTA is busy with exciting initiatives. This level of expansion would not be possible without the inventive minds of the people within SAOTA; after all, you cannot create without creativity.

“Our most active city markets at the moment are Dubai and Miami,” said SAOTA Principal Philip Olmesdahl.

“We started working in Dubai in 2010 and have since been involved in over 80 projects in the city, of which 13 are located on Palm Jumeirah and five on Frond G – a stretch of land known as Billionaires’ Row. We are excited to be working in a booming market and in such an iconic landscape. With projects on multiple continents, we design buildings for diverse contexts, sites, and climates – aspects that are core to our design ethos.”

In Dubai, the Casa Del Sole – a

SAOTA

// IT’S ABOUT FOSTERING AN ENVIRONMENT WHERE CURIOSITY FLOURISHES, CREATIVITY IS NURTURED, AND COLLABORATION CREATES MAGIC // villa on the Palm Jumeriah was sold recently for $82 million (R1.47 billion).

Designed by SAOTA, the building is now one of the most expensive homes ever sold in Dubai, despite not being finished. Expected to complete soon, the property is vast and calls on the

brightest minds from design, style, construction, and finishing. Using the finest materials from around the world, this is a statement just as much as a luxury home. It answers the question of why SAOTA? Why pay more? In this realm in Dubai, you could easily spend less and still have a deluxe property that would make almost all jealous.

But why go that extra few inches and spend that little bit more? To unlock true creativity. To be exclusive. To be amongst the elite of the world’s buildings. To push boundaries.

This forward-thinking approach is something that will not stop as SAOTA is already designing the future by onboarding a team of ambitious young interns who spent time across all SAOTA departments learning how the company operates and promotes innovation.

“SAOTA’s intern program isn’t just about introducing fresh minds

to the field of architecture; it’s about fostering an environment where curiosity flourishes, creativity is nurtured, and collaboration creates magic,” the company said.

As the company passes its enthusiastic creativity to the next generation, the focus on unleashing imagination will be at the heart of this business and helping to further cement South Africa as a destination recognised for originality and ingenuity.

“We can change the world and make it a better place. It is in our hands to make a difference,” said a famous South African, and he knew all about creativity.

WWW.SAOTA.COM

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MANSER SAXON

Shaping Cities and Communities

for Three Decades PRODUCTION: Jamie Waters

When it comes to updating, changing, or caring for property in Mauritius, Masner Saxon is the leading contracting group, with divisions capable of handling any project. From interiors to air conditioning and fire security, the company can do it all. This year, the company celebrates its 30th anniversary, looking back on a strong history of delivery of quality.

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INDUSTRY FOCUS: CONSTRUCTION

//

Mauritius is perhaps one of the most exciting opportunities in Africa right now. Economic development, societal advancement, long-term thinking, and an attractive and stable environment make for a fantastic business landscape to match the paradise that is the island’s natural beauty.

Where the Indian Ocean laps the white sandy beaches of Mauritius’ long coastline, the land – crafted by volcanoes – is characterised

by Filao trees, beautiful and fast growing and long lasting, known for being resilient and strong.

Here, on the pearl of the Indian Ocean – independent for 55

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years – a collection of tough and robust businesses is building deep expertise across various industries, servicing the growing Mauritius economy and helping in the drive for diversification. This group, the IBL Group, is creating a varied portfolio, listed on the Stock Exchange of Mauritius, that holds the vision of ‘creating a brighter future for all.

With more than 300 companies in the group, there isn’t much you could want that IBL couldn’t provide. In the past, Enterprise Africa has heard from Eagle Insurance and IBL Shipping about building capacity and quality on the island. Now, we learn more about the group’s contracting offering. Manser

Saxon was acquired by the IBL Group to bring a unique but widespread skillset to the group, complementing existing operations in the sector.

Manser Saxon is a multi-discipline contracting business specialising in mechanical, electrical and plumbing as well as fit out interiors and facilities management. Headquartered just north of Port Louis, the company is celebrating 30 years of successful business and continues to grow in the year of its pearl anniversary.

TAILOR-MADE “We deliver tailor-made solutions to the construction and allied industries and serve a wide range of clients

MANSER SAXON

locally as well as in the Indian Ocean region,” the company states.

“Manser Saxon employs about 1600 people, deployed across ten divisions and associated companies, based locally and abroad, each offering different services. Innovation being at the heart of our values, we always strive to bring new products and services that will best suit the needs of our clients.”

Increased demand for housing

and an enhancement in government infrastructure spending has helped the construction industry to boom.

Private investment has also been encouraged and many new businesses across retail and tourism have opened doors, looking to rebound from the Covid-19 slowdown.

For Manser Saxon, the opportunities are vast. The company boasts divisions across interiors, electrical, fire prevention, plumbing,

// WE DELIVER TAILOR-MADE SOLUTIONS TO THE CONSTRUCTION AND ALLIED INDUSTRIES AND SERVE A WIDE RANGE OF CLIENTS LOCALLY AS WELL AS IN THE INDIAN OCEAN REGION //

elevators, air conditioning, and a facilities team. While many claim to have a full suite of products to cover an entire building footprint, the usual way to achieve this is through outsourcing and losing ultimate control over quality and delivery. For Manser Saxon this is not an option and the details put in place by clients are meticulously followed by inhouse teams to ensure the best outcomes.

“MS Interiors is a one-stopshop solutions provider, offering technical facilities for the design, manufacture and installation of shop fittings, case goods, ceilings, and partitioning systems amongst others,” the company says.

“MS Electrical is specialised in the design, building and installation

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INDUSTRY FOCUS: CONSTRUCTION

of both medium voltage and low voltage electrical systems. MS Fire Prevention and Network specialises in the design, building and installation of fire detection and fire suppression systems.”

MS Plumbing is concerned with small, medium, and large developments, designing, installing and commissioning public health installations, swimming pool installations, firefighting and fire extinguishing systems.

The facilities management

division of the business is run in JV with ENGIE, a leading European energy business, and has a team of more than 150 technicians capable of handling many applications. This division has been active in Mauritius for more than 16 years and is well-known for getting the best from a building.

“MS Elevators is the exclusive supplier of the brand Otis, as well as the first company to have offered environment-friendly technologies such as Regendrive and belt technology as a substitute to wire

// BETTER OPERATIONAL EFFICIENCY AND NEW CONTRACTS CONTRIBUTED TO THIS POSITIVE MOMENTUM //

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ropes in Mauritius,” the company says of this specialist division.

“We are the leading supplier of lifts, escalators, and travellators in Mauritius. With more than 600 lifts and escalators in operation, MS Elevators comprises of a team of dedicated engineers and technicians who ensure efficient installation and maintenance of all products.”

Tornado Ltd is the final specialist division of Manser Saxon and is involved in the design, supply and installation of air conditioning systems for light commercial and industrial projects as well as individual clients. Representing a number of high-profile international brands, the company installs best-in-class technology from Samsung, Daikin, Fujitsu, TCL, Montair and more.

MANSER SAXON

OPPORTUNITIES EVERYWHERE According to Ernst and Young, the budget set out by the government in Mauritius is both ambitious and achievable, searching for 8% economic growth, and rests on two key sectors – tourism and construction and infrastructure. Here, Manser Saxon is the key player. Imagine construction of a new skyrise hotel on the beach in Grand Baie. With the country expecting 1.4 million tourists to arrive by July 2024, there is a need for modern, international standard accommodation.

Manser Saxon can complete an interior fit out across a brand new hotel, install and test elevators, install and commission air conditioning systems, create security plans with extensive technology, put in place fire and security systems that guarantee success, and ensure all plumbing and

maintenance is of first class standard.

Manser Saxon can then provide and ongoing service well into the building’s life, ensuring efficiency. Not only can the company do all this with quality ensured, it can boast three decades of experience and a portfolio of completed projects that demonstrate excellence. Few others, across all industries, can offer these assurances in Mauritius, and the IBL Group remains confident in its expert subsidiary.

“A significant turnaround was achieved by Manser Saxon, which registered improved performance across all segments.

Better operational efficiency and new contracts contributed to this positive momentum,” the group said in its annual report.

Developed and created in Mauritius, the company has local

manufacturing sites and factories that create interior materials. The 1600-strong team is based locally, and the ownership through IBL Group is Mauritian. Because of this connection to the region, financial success feels all the more important, and this is why there will be no slowing down, even after 30 years of growth.

“Manser Saxon’s dynamic interconnected specialist teams are focused on quality, workmanship, and meeting deadlines,” the company concludes.

WWW.MANSERSAXON.COM

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MARSH AFRICA

Understanding Modern Business Risk

Alongside the World’s Best PRODUCTION: Sam Hendricks

As one of the world’s premier insurance brands, Marsh has long been viewed as a company with all the answers. But as modern risks continue to morph and change, there is a need to stay up to date, and Marsh has that ability. New markets, new tools, and fresh ideas are helping to keep this powerhouse at the cutting edge of the market.

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INDUSTRY FOCUS: FINANCIAL SERVICES

//

Recognised the world over as one of the biggest and best names in risk management and insurance, Marsh McLennan is a powerhouse with more resources, more insight, more history, and more global presence than almost any other company in the space. The combination of Marsh, Guy Carpenter, Mercer, and Oliver Wyman makes for a formidable offering and portfolio which has supported clients, both private and commercial, for decades.

In Africa, the group has strong interests across the continent acting as a leading risk advisor and insurance broker. With tens of thousands of people around the world, in 130 countries, Marsh’s differentiator is that it still understands the local conditions in the markets that it operates in.

Whether it’s climate risk in East Africa, infrastructure breakdown in South Africa, or political risk in West Africa,

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the company – and the group – has feet on the ground delivering expert insight, advising clients appropriately on the risks that face their business or personal circumstances.

But even with local insight and world-class products, risk is a constantly changing element that must be monitored closely to ensure a reasonable response.

MOROCCO EXPANSION After historic success in South and southern Africa, there has been a push to take market share in other parts of the continent with strong economic conditions and healthy underlying indicators.

In November 2022, Marsh announced that it would acquire the remaining share of Beassur Marsh, a leading insurance broker in Morocco. Following the acquisition of an initial stake in 2019, the

new deal will see Marsh grow its presence in North and West Africa.

When the deal finalises, the new entity will be known as Marsh Morocco and current CEO Mehdi Tazi will continue, supported by Anis Safraoui, Head of North and Western Africa and other regional leaders.

Christos Adamantiadis, CEO, Middle East and Africa, Marsh, said: “Following our successful investment three years ago, we’re excited to acquire a majority stake in Beassur Marsh as we continue to develop our expertise and support our clients in the Moroccan insurance market. The combined business will enable us to invest further in the business and set a new standard for insurance and risk advisory services in North and West Africa.”

The changing nature of risk has encouraged expansion into new markets as clients are desperate for a deeper understanding of

MARSH AFRICA

new risks. Whether emerging from technology or innovation, or from changing threats from climate or societal instability, the need for intelligence and data is growing.

MODERN RISK Marsh has identified a number of risks that are currently being overlooked, especially for businesses. The company conducts research across all industry sectors and local specialists quickly gain intuition around where the group could bring a solution.

Three key concerns for African leaders to mull are climate, trade credit, and cyber security.

Scott Williams, ESG Coordinating Director for Marsh MEA, says that the well-documented implications of climate change such as rising sea levels, extreme weather events, loss of habitats, and more are an existential risk to society. But risks to business, categorised as transition risk and

physical risk, have not been adequately addressed by many. Transition risks involve business-related elements such as technology and reputation. With little data available for a long-term energy transition from an insurance perspective means that choosing the right cover can be hard. Physical risks involve acute and chronic pain points, such as the acute devastating floods in KwaZulu-Natal last year. Chronic pains develop as a result of much longer-term changes which are not yet fully understood and often do not have policies developed to support.

Almost all companies in the Middle East and Africa will not have the resources to understand these risks in depth, and so partnering with a expert is essential.

“While many forward-looking companies in the region are already taking action to reduce their impact on rising temperatures and boost their resilience, the specific timelines and exact outcomes of the evolving climate change threat

remain unclear,” says Williams.

“The interconnected nature of economies, sectors, and global markets means that your MEA business will likely be impacted at some point in the near future,” he adds.

A more recognised risk is nonpayment or missed payment from customers. Typically a more understood risk for businesses and insurers, there are many products in place to mitigate. With bleak economic outlook for South Africa and other countries in the region, the expectation from most is that bad debt figures may rise with SMEs bearing the brunt. Trade credit insurance from Marsh protects against this risk and offers a number of associated benefits. Improvement in cashflow, allowing for exploration of new markets, increasing sales volumes, and reducing the risk of insolvency are all achieved with the right cover.

But finding the right cover is critical.

“Amid slower global economic

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INDUSTRY FOCUS: FINANCIAL SERVICES

// THE INTERCONNECTED NATURE OF ECONOMIES, SECTORS, AND GLOBAL MARKETS MEANS THAT YOUR MEA BUSINESS WILL LIKELY BE IMPACTED AT SOME POINT IN THE NEAR FUTURE // growth, high energy prices, inflation, and higher interest rates, companies in the Middle East and North Africa are increasingly at risk of delayed payment or non-payment by customers based either in the region or in the UK, Europe, US, and Latin America where late payments have spiralled out of control in some sectors,” explains Milind Jain, Marsh’s Credit Speciality Leader, Middle East and North Africa.

“In order to protect themselves against bad debts, information is key. Companies should lean on their insurers and relevant information providers such as trade associations and professional bodies to perform due diligence

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on partners ahead of providing them with goods and services.

“Companies should consult a broker to make sure they have the most suitable insurance coverage in place and are taking all measures available to mitigate their trade credit risks,” he says.

CYBER THREAT Perhaps one of the most important risks that Marsh has identified for businesses is the complete lack of protection against cyber-attacks.

Not a new phenomenon, many find it puzzling that companies of all shapes and sizes are still so exposed to cyber threats, and many have little or no plans in place to handle such a

problem. Whether it’s theft of data, ransomware, extortion, financial loss, or something different, cyberattacks are one unwelcome element of the still blossoming digital age.

In a report prepared by Marsh and Microsoft, statistics suggest that just 4% of businesses in the Middle East and Africa are confident in their organisations ability to deal with cyber threats.

“The vast majority of organisations are still struggling to understand the risks posed by their vendors and digital supply chains,” says Christos Adamantiadis.

He highlights the UAE where over the past few years there have ben more than 166,000 victims of cybercrime, representing a combined loss of more that US$745 million. For businesses. The report also found that 37% of businesses had no insurance related to cyber risk, and few were implementing enterprise-wide solutions that incorporate all teams

MARSH AFRICA

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and not just the IT department.

“Executives’ confidence in their organisation’s core cyber risk management capabilities – including the ability to understand and assess cyber threats, mitigate and prevent cyber-attacks, and respond to attacks - remains a major concern,” details Adamantiadis. “Indeed, 60% of respondents stated that they have not even conducted a risk assessment of their vendors or supply chains.

“Given the accelerated growth in the complexity and scale of cyberattacks in the MENA region over the past few years, these findings are particularly troubling. The toll of almost three years of unrelenting workplace disruption, digital transformation, and ransomware attacks does not yet appear to have made a significant impact on the way that business leaders think

about risk. This is surprising given the nature of a series of high-profile events.

“Every business, everywhere and no matter their size or sector, must act now to protect themselves, their supply chains and the wider economy,” he highlights.

“Modern-day cyber incident response plans should be refreshed, with a new focus that takes into account evolving forms of cyber-attacks, such as ransomware, and the increased sophistication of cyber attackers,” adds Marsh Africa CEO, Spiros Fatouros.

Thankfully, Marsh and the wider Marsh McLennan Group is well-positioned to guide clients on a lasting journey that will allow for deep understanding of risk, and plan to mitigate that risk wherever possible.

Gone are the days of a business thinking only about products being

stolen or accidental fires on premises as their main danger. Even for small businesses, the picture is now much more complex and a global partner with local knowledge is a great asset.

Marsh is as experienced as they come. “No longer a company of companies, we are one enterprise with four global businesses that are taking on the great challenges of our time—together,” the company says.

“Our Purpose has never been more important or more relevant: We make a difference in the moments that matter. We do this best when we bring our collective expertise to meet the most complex challenges that our clients and society face today.”

WWW.MARSH.COM/ZA

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FOSKOR

SA Minerals In Demand, Globally PRODUCTION: Jamie Waters

South Africa’s mineral resources are continually recognised as outstanding on global markets, whether it’s metals, coal, or phosphates. Foskor mines phosphoric rock which is used to make acids and fertilisers, and without the dominant player (Russia) trading freely, Foskor has been able to reinforce its position as a leading international partner.

There is more to come from this historic, proudly South African business.

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INDUSTRY FOCUS: MINING

//

On South Africa’s east coast, at Richards Bay, valuable and sometimes hard to find minerals and commodities are loaded to vessels heading off around the world. This export activity keeps the world turning, and reinforces South Africa’s importance as a global mineral resources powerhouse. Simply, without the excellence of what hides in the earth in South Africa, economies would not advance the way they do.

Whether it’s precious metals, battery minerals, or diamonds, the country is famed for what it can pull from the ground. But at Richards Bay, one the key products moving is phosphate. Coming from the local

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Foskor processing facility, after being railed from Phalaborwa in Limpopo on the fringe of the Kruger National Park. In Phalaborwa, a vast reserve of phosphate rock is cut from the earth in a mass mining operation that has been active since 1953. 70 years since it was commissioned, the mine is expected to hold more than 1.5 billion tons. If accurate, that would keep the mine active for the best part of the next century based on current annual target production.

Unlike the metals and coal that the country exports, phosphoric rock is not used in manufacturing or energy.

Agriculture, food production, and the chemical industry is the end goal,

with phosphoric rock processed into phosphorus, typically using sulphuric acid and ammonia as catalysts. It is added to a combination of other materials to make world-class fertiliser that is spread over crops to ensure healthy growth. Phosphorus helps plants to use and store energy and assists in the process of photosynthesis, alongside potassium and nitrogen.

For farmers with wide open fields and productive lands, fertilisers made with South African materials add that extra magic that brings strong and healthy crops to fruition.

By producing phosphoric rock at scale, South Africa joins major economies including China, USA,

FOSKOR

Russia, Egypt, Australia, and Saudi Arabia as those with top phosphate reserves. In Africa, Morocco, Western Sahara, Senegal, and Algeria are also recognised phosphate countries, but South Africa has a long-standing and proven route to market with fundamentals in place to ensure quality and volume.

MARKET OPPORTUNITY When Russia invaded Ukraine in February 2022, the price of fertiliser soared. With Russia a key exporter but exiled from global markets, supply diminished quickly. Prices had already been high following the Covid-19 chaos, supply chain breakdowns, and a spike in energy input costs.

While agricultural products were exempt from some restrictions, the reputational issue of trading with

// PROGRESS HAS BEEN MADE WITH FOSKOR, WHICH HAS MOVED FROM BEING A DRAIN ON THE CORPORATION’S BALANCE-SHEET, TO A NET PROFIT POSITION, CONTRIBUTING TO IDC GROUP’S INCOME // Russia and the cost of navigating the complicated banking process required to deal with the country made fertiliser a product driving demandpull inflation. This placed South Africa and Foskor in a somewhat fortunate position. The company, which is majority owned by the state-owned Industrial Development Corporation (IDC), had been through a number of years of challenge around production and efficiency, but with prices at a peak, there was an opportunity.

Foskor quickly went about completing orders for major clients in Europe, Asia, Latin America, the Middle East, at home in South Africa and across the SADC region. The company can produce 2.4 million tons of phosphate rock each year, and the product is highly rated, often regarded as some of the purest in the industry.

It reassured customers of its stability, and reminded that, despite uncertainty around the rail line operated by Transnet between Phalaborwa and

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INDUSTRY FOCUS: MINING

// FOSKOR’S REVENUE INCREASED BY 64.8% DURING THE PERIOD DUE TO INCREASED SALES VOLUMES AND COMMODITY PRICES, AND AN OVERALL IMPROVED OPERATING ENVIRONMENT // Richards Bay, Foskor could fulfil.

The IDC was delighted with the upturn in Foskor’s fortunes and its more than 1500 people were praised for their contribution. Ebrahim Patel, South Africa’s Minister of Trade, Industry and Competition said: “As part of improving institutional capability, the IDC has focused on the turnaround of struggling

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subsidiaries – progress has been made with Foskor, which has moved from being a drain on the Corporation’s balance-sheet, to a net profit position, contributing to IDC Group’s income.

“In support of our export strategy, additional exports of about R40.7 billion will be generated

by IDC-supported companies, for committed funding in the year

under review,” he added, speaking of the organisations achievements in the year ending 31 March 2023 IDC CEO TP Nchocho was also happy, commenting: “With support, our subsidiary Foskor turned its fortunes around to deliver a net profit of more than R700 million.”

FRESH FUTURE? Isaac Malevu demonstrated clearly the success that Foskor was realising.

“Foskor’s revenue increased by 64.8% during the period due to increased sales volumes and commodity prices, and an overall improved operating environment… [The company], with improved profits of

FOSKOR

R2.8 billion, managed to turn around a loss of R541 million in 2021/22 through cost efficiencies and a marked recovery of impairments on financial assets,” he said.

Previously, the IDC had been clear when stating that it could not realistically remain as a major shareholder in Foskor and that private investment should be sought to allow the company to thrive. The IDC wants to dilute its shareholding or sell Foskor to allow capital to flow into the business. The strong performance this year has made any transaction more sustainable. Now, a JSE listing is being discussed and while nothing is finalised without board approval, there is hope

that fresh equity could be attracted.

For Foskor people, there is hope that a fresh period of strong and positive business could return the brand to a proudly South African icon.

In 2020, the company was lauded as a Top Employer, recognised by the Top Employers Institute of the Netherlands, which certifies people practices within forward-thinking organisation globally. At the time, the company was said to have exceptional employee conditions with a nurturing and developmental culture which allows talent to thrive. Recently, the company was working with the National Union of Mineworkers (NUM) to restore employee confidence and

bring a consultative approach to strategic planning for the future.

With an opportunity to cement itself on the international stage, Foskor remains busy as its people work hard to take advantage of the prospects in the market. One certainty that remains whatever the case, South African minerals are some of the best in the world, and global markets need high quality, reliable supply more than ever before.

WWW.FOSKOR.CO.ZA

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EXHIBITION CALENDAR

KEY UPCOMING EVENTS ACROSS THE REGION Important events and exhibitions taking place across sub-Saharan Africa, giving brands a platform to tell their story.

OCT

19 OCT

25

EAST AFRICA TOURISM & HOSPITALITY EXPO 2023 OCT 19-21 | TANZANIA

East Africa International Trade Exhibition on multi-sector products, equipment & machinery is the largest trade event held annually in Tanzania, the hub of the vast East African market. The exhibition attracts exhibitors from countries and visitors from all over East & Central Africa, thus giving exhibitors an excellent opportunity to explore several countries at one time.

TECHSPO CAPE TOWN OCT 25-26 | CAPE TOWN

TECHSPO Cape Town 2023 is your chance to …

• Check out exhibitors showcasing the next generation of technology & innovation.

• Be inspired, amazed and educated on how these evolving technologies will impact your business for greater growth.

• Interact with technology enthusiasts, build your network and reunite with your peers.

The 6th annual TECHSPO Cape Town, two-day technology expo returns October 25th and 26th, 2023 to the V&A Waterfront Cape Town Avenue Conference Venue in Cape Town, South Africa. TECHSPO Cape Town brings together some of the best developers, brands, marketers, technology providers, designers, innovators and evangelists looking to set the pace in our advanced world of technology. Watch exhibitors showcase the next generation of advances in technology & innovation, including; Internet, Mobile, AdTech, MarTech and SaaS technologies. Be prepared to be inspired, amazed and educated on how these evolving technologies will impact your business for greater growth.

As part of TECHSPO Cape Town is a limited attendance event, DigiMarCon Africa 2023 Digital Marketing, Media and Advertising Conference (https://digimarconafrica.com). If the conference is where the learning, theory and inspiration happens, then the TECHSPO floor is where the testing, networking and product interaction takes place.

NOV

21

WEST AFRICA PLASTPRINTPACK NOV 21-23 | ACCRA, GHANA

The plastprintpack West Africa is a trade fair for plastics, chemicals, printing and packaging technology. The fair is aimed at professionals in the industry. The visitor can get information of the newest products and technologies for the plastics and chemical industries and in the printing and packaging industry in a pleasant atmosphere. The fair offers latest information about products and market trends as well as news from the industry. It is also an excellent opportunity to learn more about new innovations.

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OCT

KENYA AGROFOOD

OCT

KENYA PLASTPRINTPACK 2023

OCT

EAST AFRICA TOURISM &

11 NAIROBI | OCT 11-14 11 NAIRIBI | OCT 11-13

19 HOSPITALITY EXPO 2023 TANZANIA | OCT 19-21

OCT

TECHSPO CAPE TOWN

NOV

ZIMEC 2023 KITWE, ZAMBIA | NOV 1-2

NOV

3

ASFW (AFRICA SOURCING & FASHION WEEK) ADDIS ABABA, ETHIOPIA | NOV 3-6

NOV

WEST AFRICA PLASTPRINTPACK

25 CAPE TOWN | OCT 25-26 1

21 ACCRA, GHANA | NOV 21-23

Sustainability Lives Here.

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