Enterprise Africa May 2017

AFRICA

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

May 2017

www.enterprise-africa.net

DR KIT VAUGHAN:

On the Cusp of a Breast Cancer

Breakthrough ALSO IN THIS ISSUE:

Tiber Construction / Ample Insurance Brokers / Jawbone / Laastedrif Farming

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EDITOR’S LETTER Joe Forshaw EDITOR joe@enterprise-africa.co.za Hal Hutchison SALES MANAGER hal@enterprise-africa.co.za Emma Neethling SALES ADMINISTRATOR sales@enterprise-africa.co.za Sam Hendricks SENIOR PROJECT MANAGER sam@enterprise-africa.co.za Shaun Cousins PROJECT MANAGER shaun@enterprise-africa.co.za Shannon James PROJECT MANAGER shannon@enterprise-africa.co.za Adam Dowson PROJECT MANAGER adam@enterprise-africa.co.za Emma Smith FINANCE MANAGER finance@enterprise-africa.co.za Harvey Tarlton SENIOR DESIGNER harvey@enterprise-africa.co.za

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Published by CMB Multimedia Chris Bolderstone – General Manager Logo Two E. chris@cmb-multimedia.com Sackville Place, 44-48 Magdalen Street, Norwich, NR3 1JU T. +44 (0) 20 8123 7859 E. info@cmb-multimedia.com www.cmb-multimedia.com CMB Multimedia does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/or in advertisements included in this magazine do not necessarily represent those of the publisher. Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. © CMB Multimedia Ltd 2017

Welcome to our latest edition…

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The theme for the May edition of Enterprise Africa is entrepreneurship. All of the companies we speak to have grown from nothing to become leaders in their chosen sector, facing major challenges along the way, some that are totally unavoidable and some that have required clever strategy planning to overcome.

Our lead feature stories come from Western Cape construction company L.A. Staal, Jo’burg-based marketing specialist Jawbone Brand Experiences, mechanical automation specialist S4 Automation & Integration, and quality service driven Ample Insurance Brokers.

All of these highly reputable and successful organisations started life with nothing apart from an idea, with just one or two people pulling the strings. They are examples of exactly how far you can go with determination and entrepreneurial spirit – rife in South Africa.

This determination and spirit will be required more than ever in the coming months as political, economic and global forces will continue to create challenges for businesses. This is demonstrated in our features from Villiera Wines who export products all over the world, and Laastedrif Farms who send their fruits and vegetables to the UK and Africa. But with the uncertainty coming from Brexit, changes to tariffs, and the widespread indecision that has become prevalent in all markets, it is getting more difficult to trade internationally and only those with effective strategies will succeed.

We also hear from CapeRay Medical, the innovative and exciting Cape Town-based medical engineering company that is almost ready to start commercially manufacturing its Aceso imaging systems that help detect breast cancer. This is a company that can change people’s lives for the better and is searching for market opportunities and partners around the world. CapeRay is another example of a business that started small with just a concept and a drive to succeed – South African entrepreneurship at its finest.

Tell us about your story of entrepreneurial success. We’re online @EnterpriseAfri1

Joe Forshaw EDITOR

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

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06/NEWS: The Month that was...

A round up of some of the latest news stories from around the country

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

8/CAPE RAY MEDICAL: “We’re on the cusp of releasing our machine into the market so it’s an exciting time” Cape Town-based scientific engineering company, CapeRay Medical, has spent the past seven years and a lot of creative skill, ambition and innovative thinking to design, build and test its Aceso imaging system for the early detection of malignant cancer in dense breast tissue. The company is now seeking further investment and industry partnerships to build on the phenomenal success that has been achieved so far.

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CONTENTS

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46/

58/

INDUSTRY FOCUS: CONSTRUCTION

INDUSTRY FOCUS: EVENTS

16/L.A. STAAL: L.A. Staal: Building For The Future

46/JAWBONE BRAND EXPERIENCES: Jawbone: As Passionate About Your Brand As You Are

22/TIBER CONSTRUCTION: Tiber Close to Completion With Discovery Project and Remaining Positive Amidst Tough Market Conditions

INDUSTRY FOCUS: AGRICULTURE 28/LAASTERDRIF FARMING: Laastedrif Adding Value With Pride & Care

INDUSTRY FOCUS: AUTOMATION 34/S4 AUTOMATION AND INTEGRATION: S4 Drives SA Automotive Automation Industry

INDUSTRY FOCUS: SAFETY 52/BBF SAFETY: Investments Secure BBF Safety’s Industry Status

INDUSTRY FOCUS: WINE 58/VILLIERA WINES: Villiera Sparkles on International Stage

INDUSTRY FOCUS: INSURANCE 66/CLIENTÈLE: 25 Years of Business Excellence At Clientèle

INDUSTRY FOCUS: INSURANCE

INDUSTRY FOCUS: SECURITY

40/AMPLE INSURANCE BROKERS: The Benchmark For Service Delivery In The Insurance Industry

72/OMEGA RISK SOLUTIONS: Omega to Expand in West and North Africa www.enterprise-africa.net / 5

NEWS IN BRIEF CITY OF TSHWANE TO CREATE OVER 20,000 JOBS

The City of Tshwane will create more than 20,000 job opportunities through the Expanded Public Works Programme (EPWP) as part of efforts to eliminate poverty, Mayor Solly Msimanga said last month.

“We have also prioritised the proliferation of EPWP job opportunities for the people of Tshwane. Within the next financial year, the city is looking to create 23,000 EPWP job opportunities for our people to alleviate the burden of poverty,” said the Mayor.

Delivering his maiden State of the Capital Address (SOCA), Mayor Msimanga said the City will ensure that these opportunities are distributed in a fair and transparent manner.

“This will be supported by the numerous projects we intend to commence within the coming financial year,” he said.

The creation of jobs will also be supported by the building of a new fire station in Mamelodi and in so doing ensure that the people of Mamelodi have better access to this emergency services.

“The creation of these job opportunities will also be made possible by a R660 million investment in our industrial nodes such as Watloo, Rosslyn, Kangala and other identified areas with respect to bulk infrastructure that brings work opportunities closer to the people of those areas.”

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TRANSNET EYES AFRICAN EXPANSION SA’s Transnet, the biggest freight operator on the African continent, is pursuing commercial opportunities in Senegal, Liberia and Nigeria, among others, according to Public Enterprises Minister, Lynne Brown.

“These include possible joint ventures in areas such as rail and port opportunities; the development of infrastructure at ports and establishing transport corridors in those countries.

“Transnet is not only committed to develop infrastructure but their presence must also change the socioeconomic conditions of those living close to these projects.

“The company must also as far as

possible procure locally and develop Small, Medium and Micro Enterprises in those countries,” the Minister said.

The road into the continent started in May 2015 when Transnet adopted its Africa Strategy which is based on their mandate to develop and pursue commercial opportunities on the rest of the continent more actively.

The continent has 15 landlocked countries requiring access to ports than anywhere else.

“If we can address Africa’s logistics infrastructure deficit, we can change the quality of lives of all Africans. And we look to Africa as a key, underdeveloped market.”

DTI INJECTS R4.9BN INTO CLOTHING, TEXTILE SECTOR The Department of Trade and Industry (dti) has approved R4.9 billion for the clothing and textile sector to create and save jobs.

Trade and Industry Minister Rob Davies said the dti, through the Production Incentives Programme (PIP) within the Clothing and Textiles Competitiveness Programme (CTCP), approved R4.9 billion to create and save jobs in the sector.

In addition, more than R3.1 billion was disbursed until the last financial year, Minister Davies said in a speech last month at the first Clothing Manufacturing Industry Sector Summit hosted in

Durban by the National Bargaining Council for the Clothing Manufacturing Industry (NBCCMI).

Throughout the sector, a number of companies which qualified and drew from both programmes, were able to save 81,252 jobs. An additional 9672 jobs were created and the net new jobs grew by 4785 until the last financial year from the

inception of the CTCP. “Whatever is needed to be done to protect the industry, it must be done but it should be in the interest of industry development and to improve the local supplier base. We want to see consequences for those who do not want to implement localisation and empowerment,” said Davies.

NEWS ROUNDUP R7BN BOOST FOR UNIVERSITY INFRASTRUCTURE Higher Education and Training Minister Blade Nzimande has announced major new investment in university infrastructure, which will see government spending R7 billion on a range of projects countrywide.

Minister Nzimande said the investment will be spent over the next two years on new student housing, laboratories, communications technology, and other essential facilities, as well as essential maintenance and the further expansion of the new universities.

It also includes R1 billion per year into the new Mpumalanga University and Sol Plaatjie University in the Northern Cape.

Nzimande also announced that a further R2.5 billion has been targeted to the historically disadvantaged universities

for over the next five years so that they can realise their full academic potential, while shaking off their historic image as the academic orphans of apartheid.

The Minister said government is committed to strengthening, developing and broadening access to universities, as is visible in the doubling of student numbers over the past 20 years.

“Investment in infrastructure, including teaching and research spaces, equipment and conducive student living environments is key to ensuring that the universities can deliver on their empowerment mandate. This approach required a particular commitment to improving living and learning conditions in the historically disadvantaged

institutions,” Minister Nzimande said.

The Minister’s announcement of a massive boost in university infrastructure spending, builds on the significant progress achieved since 2007 through the department’s Infrastructure and Efficiency Grant.

This has in the past 10 years seen R14.87 billion spent on ensuring that the universities have adequate infrastructure to ensure growth in priority areas such as science, technology and engineering, animal and human health sciences, and teacher education programs.

All universities across the country have benefited from this investment, with historically disadvantaged institutions prioritised since 2010 for a greater proportion of the funding.

KZN TO GET TITANIUM BENEFICIATION PLANT KwaZulu-Natal Premier Willies Mchunu says the announcement of a R4.5 billion investment in the Richards Bay Industrial Development Zone (RBIDZ) confirms that KwaZulu-Natal is a preferred destination for foreign direct investment.

The Leader of Government Business and MEC for Economic Development, Tourism and Environmental Affairs, Sihle Zikalala, last month presided over the strategic partners signing ceremony, which was attended by captains of industry and members of the diplomatic corps representing New Zealand, Zimbabwe and Germany.

The partnership involving RBIDZ, Nyanza Light Metals and New Zealand based company, Avertana Ltd, paves the way for the construction of a titanium beneficiation plant.

“This positive news will boost business confidence and help attract

more investment into the province.

Such developments are important, given the fact that there are fears of a recession resulting from the downgrading of South Africa.

“We acknowledge that we are not the only nation in the world that has had to adjust to the harshness of the impact of recession and other global economic challenges such as downgrading by rating agencies.

Over the past years, we have been working hard to help our people to survive through the rough storm…

This investment will help to create more jobs for our people,” said Premier Mchunu.

Speaking at the signing ceremony and representing the Premier, MEC Zikalala said they are excited that RBIDZ will now host this strategic plant, which will help to ensuring that KwaZuluNatal remains a national leader in the production of chemicals.

“The plant will produce titanium dioxide pigment, a product used in paint, toothpaste and colourants for food products. The construction of the plant will commence next year, while production is expected to begin in late 2019.

“The Department of Trade and Industry extended a grant of R17.1 million to the company for feasibility studies and has also approved an investment allowance of R900 million.

“We appreciate the news that about 550 permanent jobs will be created when the Nyanza plant is operational and that 1200 indirect and 800 direct jobs will be created during construction,” MEC Zikalala said.

The RBIDZ, with the financial assistance of the SEZ Fund of the dti, is also funding and managing projects involving the widening of Alumina Allee Road and the upgrading of the municipal industries substation.

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CAPERAY MEDICAL

“We’re on the cusp of releasing our machine into the market

so it’s an exciting time” PRODUCTION: David Napier

Cape Town-based scientific engineering company, CapeRay Medical, has spent the past seven years and a lot of creative skill, ambition and innovative thinking to design, build and test its Aceso imaging system for the early detection of malignant cancer in dense breast tissue. The company is now seeking further investment and industry partnerships to build on the phenomenal success that has been achieved so far.

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C

www.wineandspiritreview.com / 9

INDUSTRY FOCUS: MEDICAL

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In modern times, where technology development and innovation are more common than ever, the methods used to diagnose and treat illness are constantly changing and improving.

However, even with this positive thought we have to remember that illness is also constantly changing and developing. One illness in particular, cancer, an old foe but one that has been in the spotlight for the past three decades, is receiving significant attention from the healthcare industry and being handled better now than ever before while remaining a prevalent taker of human life. An estimated 7.4 million men and 6.7 million women are being diagnosed with cancer worldwide each year. The disease is the leading cause of death globally, accounting for an estimated 8.2 million deaths in 2012 and approximately 15% of all deaths. Breast

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cancer is the most common cancer in women worldwide and millions around the world are diagnosed with the condition each year. It is a growing concern in sub-Saharan Africa, having surpassed cervical cancer as the leading cause of death in many countries. According to a 2014 journal entry, Breast Cancer in Sub-Saharan Africa, in the US National Library of Medicine - National Institutes of Health: “The problem of breast cancer in Africa is compounded by the lack of standardised diagnostic and treatment programs and that many women delay seeking treatment for symptoms, with a large proportion of the diagnosed cancer being ones that are not amenable to treatment.”

Experts in the industry agree that, as with all cancers, earlier detection of breast cancer is vital in successfully fighting the condition and the same journal recommends ‘educational

campaigns about the importance of early detection’.

Technology has assisted greatly in detection of breast cancer and mammography (using low-energy x-rays to provide exploratory images of the breast) has become a standard diagnostic breast screening tool.

Unfortunately, even when women are screened in the recommended way, cancers can be missed – it has been reported that mammography alone can miss between 37% and 70% of breast cancers in women with dense breast tissue. For Dr Kit Vaughan CEO of CapeRay Medical, and fellow Director, Professor Tania Douglas, this idea was unacceptable.

Douglas (Director of the Medical Imaging Research Unit at UCT) and Vaughan (14 years as the Hyman Goldberg Chair in Biomedical Engineering at UCT and a pioneer of the medical device industry in South

Your Yourpartner partnerinin development developmentfinance finance

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The Thesystem systemhas hasaa anumber numberof advantagesover overexisting existingtechnologies, technologies,such suchas: The system has number ofofadvantages advantages over existing technologies, such as:as: • •Greater Greaterpatient patientthroughput throughput(10 (10minutes minutesper perscan scanversus versus3030minutes minutesper perscan) scan) •• •Greater patient throughput (10 minutes per scan versus 30 minutes per scan) Lower Lowercost costofofownership ownership •• •Lower cost of ownership Reduced Reducedbreast breastcompression compression •• •Reduced breast compression Call 0860 693 888 or email callcentre@idc.co.za Reduced Reducedradiation radiationdose dose •Call Reduced radiation dose www.idc.co.za Call 0860 0860 693 693 888 888 oror email email callcentre@idc.co.za callcentre@idc.co.za IDC provides business financing for local manufacturing and global commercialisa�on of South African-developed medical devices. www.idc.co.za www.idc.co.za Apply for business financing of R1 million or more at idc.co.za , email callcentre@idc.co.za or call 0860 693 888.

INDUSTRY FOCUS: MEDICAL

Africa) are two drivers behind the establishment of CapeRay Medical and the development of the Aceso system – a device that combines fullfield digital mammography (FFDM) and 3D automated breast ultrasound (ABUS), significantly improving diagnostic accuracy in dense breasts.

Today, the technology is trialled, tested and ready for mass production and CapeRay is now seeking investment and industry partners to bring the project to life.

ACESO - GREEK GODDESS OF HEALING “This concept of being able to do an x-ray and ultrasound at the same time has been around for a while, we didn’t dream up the concept of merging the two, there’s patents going back to the late 90s. There were a few prototypes built by companies

in the mid-2000s, including major international companies, but they were basic, crude prototypes,” explains Vaughan. “What is different about our idea is that we’ve found a way of doing this in an elegant and inventive way, that allows for a single system to acquire two different sets of images simultaneously in a clinical environment, where you can see one woman every ten minutes. We believe that it’s not a trivial undertaking; it takes elegant engineering and creativity.

“We now have one of the world’s foremost radiologists on-board, Dr Daniel Kopans, a Professor of Radiology at Harvard University and the Massachusetts General Hospital.

He is very keen and committed to working with us to develop our next generation system which will combine 3D X-ray with 3D ultrasound. He was

the original inventor of the Digital Breast Tomosynthesis (DBT) and that is basically 3D mammography and it’s an area that people are very excited about. Our collaboration will take us to the next level and the chances of missing a cancer, particularly in a younger woman with dense breast tissue, will be significantly diminished. We anticipate that these are the kind of collaborations that will get investors excited.

“We believe we have shown what we’re capable of, we’re in the process of finding a strategic partner, and we now need to gain further investment and we’re talking to potential partners right now.”

CONFORMITÉ EUROPÉENNE Currently, CapeRay Medical is going through an auditing and certification process and will soon gain the CE

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Quality System Registration Third Party Validation to International Standards

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Risk Management

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CAPERAY MEDICAL

mark, essential for selling equipment in international markets and attracting investors.

“In order to be able to sell our systems, both in South Africa and internationally, we need to secure the CE mark and that is issued by the notified body - essentially an auditor,” details Vaughan. “That CE mark audit started in late-January with a specialist company called Underwriters Laboratories who have proved very helpful. They’ve conducted the off-site audit and reviewed the information in our technical file, and the on-site audit will happen in Cape Town in mid-May. We anticipate securing the CE mark in June. As part of the process

to secure the certification, you also have to have the system independently tested and that test report is currently about halfway through. It’s being conducted by a company in the USA and is an expensive process. They test for electromagnetic interference and compatibility, and also safety testing.

We had to ship our product to Baltimore and we also sent an engineer out to complete repairs and testing and we hope for that process to be complete by the beginning of June. When these processes are complete, we will be ready to market ourselves and sell systems in South Africa and around the world and that is good news. It’s taken us seven years and almost £3 million

(approx. R45 million) to get to where we are today.”

Any future business that CapeRay Medical may achieve will be based on its ability to gain the relevant approvals, endorsements and authorisations from industry bodies, and obtaining these certifications will also bolster the business as an investment case. Fortunately, extensive clinical trialling and testing has already been documented and further trials are set to start in the near future as Vaughan explains.

“We are carrying out final tests on a new machine which will be installed into a military hospital in Wynberg, Cape Town. We’re going to run a long-

//HEALTH-WISE: ENSURING QUALITY AND SAFETY COMPLIANCE IN THE MANUFACTURE OF MEDICAL DEVICES Technological innovation in the field of medicine is happening at a pace never seen before, and nowhere is quality and safety control more important than in the manufacture of devices on which lives, health and well-being depend.

Equally important, however, is the business need to get fully certified products to market without delay. Balancing these two objectives is one of the greatest challenges facing companies that not only have to invest heavily in research and development, but also have to meet stringent regulatory standards.

This is where UL (Underwriters Laboratories), which has over 120 years of experience in testing and certification, is such an invaluable business partner. UL’s Health Sciences teams are amongst the most diverse and experienced in the world, helping manufacturers to get their products to market faster.

Using specialist industry teams, we help our customers to meet key milestones in the development of sophisticated medical devices, making sure they conform to regulatory requirements every step of the way. We assist in securing compliance right from concept through to launch and, thereafter, help to maintain it throughout the lifecycle of the product.

If regulatory requirements are not met at all of stages of the product lifecycle, this could lead to costly delays or even embargoes, bans, recalls and liability actions.

At UL, we offer the latest ISO 13485 quality certification to support global regulatory requirements. Our services include non-clinical testing; usability studies; EMC and performance testing; safety certification; and compliance training in order to facilitate speedy and unrestricted access to both local and international markets. We also work directly with government agencies around the globe to help inform IT policy, especially as it relates to cyber security and interoperability.

UL’s global presence further enables us to offer our customers testing, regulatory and certification services in their own languages and time zones, as well as to meet regulatory requirements in multiple counties. And we provide comprehensive, customised learning management systems that can be integrated directly into their compliance and quality systems in order to demonstrate compliance to regulators.

The benefits of this integrated approach are real and quantifiable, and include lower costs, reduced business risk and, ultimately, healthier patients.

Speak to UL about becoming your partner in safety and quality assurance today. www.ul.co.za

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INDUSTRY FOCUS: MEDICAL

term clinical trial with one of our key collaborators and she will be looking at 2000 patients over a 12-month period so that’s a nice, large trial where we will look at efficacy. We have completed two other clinical trials, both of which have resulted in journal publications. The first clinical trial was in April/May 2014 and the second was in November/December 2015 and the two publications were released in Clinical Imaging and Diagnostics, the latter a Swiss-based journal where there’s a special section on breast imaging. Those two reports form part of the basis for our submission for the CE mark. Later this year, we will be looking to secure FDA (Food and Drug Administration) approval and that will rely on the clinical data in those reports. We’re on the cusp of releasing our machine into the market so it’s an exciting time.”

Securing potential customers for the future is now of vital importance to CapeRay Medical and will help

potential investors and partners see the possibilities for the products, at home and internationally. In order to kickstart the sales process, CapeRay has made a real effort at international trade shows and has built relationships with distributors which look set to bear fruit.

“Our intention is to sell our first systems in South Africa where we are already lining up customers,” claims Vaughan. “We recently returned from a trade show in Dubai where we exhibited successfully, allowing us to establish links with distributors in Europe and the Middle East. We’re about to appoint distributors in Iran, Bulgaria and Turkey and we anticipate through those distributors finding homes for our first overseas systems. Our longer-term vision, that’s for the next four years, we’re anticipating linking up with a strategic partner that’s already in the medical imaging market place with a significant geographic footprint that can help us scale up production and

marketing, and grow our turnover.

This year, we’ll sell a modest number of machines but in five years we hope to sell 40-50 per month, and that still represents a small percentage of the global market.”

CapeRay Medical owns various pieces of intellectual property, including a US patent for digital tomosynthesis (creating a 3D image of the breast using X-rays), and a design patent in the US and EU for a patient handle, while there are two patents recently awarded in the UK and US for its dual-modality technology that enables the fusion of X-rays and ultrasound – this is a South African company at the cutting edge of technology, separating itself from global competition with innovation and creativity.

GROWTH IN 2017 With the global political environment making for an uncertain and

CAPERAY MEDICAL CEO, KIT VAUGHAN

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CAPERAY MEDICAL

unpredictable economic situation, some may think that now is not the best time to seek investment. However, Vaughan and CapeRay Medical are clear when stating that now is the time to focus on what is within their control, namely their products. “Political and economic uncertainty is a factor when looking for investment but it’s something over which we have no control,” he says.

“What I know is that we have a very exciting product and a very exciting pipeline for new products in the future that will make a real difference in the lives of women around the world. I’m sufficiently optimistic that we will secure investment. In March, we received a letter from the US Patent and Trademark Office granting us a key patent which they’ll issue soon and that protects our ability to do dual-modality imaging and that will help investors to feel secure about the intellectual property which now has international value. Whoever invests in

our company can be assured that they will have something of real value.”

Of course, with growth of turnover, revenue and production comes growth in the workforce. Currently home to some of the country’s brightest engineers, Vaughan hopes the headcount will grow and CapeRay will attract a new group of specialists across a range of disciplines.

“We anticipate that in the next three or four years we will grow our employee base from 10 to 40.

“In the early years of the business, the focus has been on research and development and we’ve hired mostly engineers. We’re very closely attached to the University of Cape Town and we have access to some extremely talented people. In time, we’ll be looking at different skills including finance, marketing and industrial engineering and there is a challenge to find these skills but we’re optimistic that we’ll always be able to attract top people.”

Is Vaughan proud of all that has been achieved over the past seven years, with millions being spent to bring products to market, extensive research being conducted, and CapeRay coming so close to the widespread establishment of a real solution? Not quite yet.

“There’s a sense of satisfaction. I’ll feel positive when our systems are in regular clinical use and starting to make a difference in savings women’s lives by contributing to the early detection of breast cancers and the treatment thereof. When the company is fully financially viable, then I’ll feel proud,” he concludes.

CAPERAY MEDICAL +27 21 702 4299 info@caperay.com www.caperay.com

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L.A. STAAL

L.A. Staal: Building For The Future

PRODUCTION: Karl Pietersen

Worcester-based steel construction company, L.A. Staal is working on a new manufacturing facility to increase its production and cope with ever-increasing demand from a list of happy customers. Founder and Managing Director, Charles Lambrechts tells Enterprise Africa about how, over the past 30 years, L.A. Staal has become the steel construction company where you will find experts you can rely on.

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INDUSTRY FOCUS: CONSTRUCTION

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In 2018, leading Western Cape steel construction business, L.A. Staal, will celebrate its 30th anniversary. Starting life as a small contractor back in the 80s, the company has grown significantly and today has the ability to design, manufacture and construct steel structures for factories, warehouses, packing sheds, mezzanines, cellars, cold storage complexes, lean-to structures, aircraft hangars and cooling tunnels. Working primarily in the Western Cape for clients in the agriculture sector, L.A. Staal has a long list of satisfied customers who regularly return to the Worcester-based company for future work. Away from its core offering, the company also has experience outfitting shopping centres, schools, sports pavilions, community centres and other buildings where steel structures and components such

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as industrial roofing, side and gable cladding are needed.

One of the core values that runs through the heart of L.A. Staal is a commitment to quality workmanship, creating complete customer satisfaction and resulting in lasting relationships. These values are instilled in the company

by Founder and Managing Director, Charles Lambrechts. He explains more about the key to three decades of successful business.

“If you have a dream, you must chase it; you must work hard for it, and you must be honest.

“The past three years has been our best ever and I think the next two years will be strong. Of course, I am not certain of this but we are expecting to continue growing.

“Our profit has been good because we keep productivity very

high, our turnover has been good, our client base is growing and so we are trying to grow with them so that we are able to deliver the goods that we promise, on time,” he says.

As for celebrating 30 years, being a very hands-on member of the team, Lambrechts hasn’t organised anything just yet but certainly will in the coming months. “We haven’t had the time to make any serious plans yet. We will celebrate because not many businesses make it through 30 years.”

BUILDING FOR THE FUTURE The current focus for Lambrechts and his team is the building of a new manufacturing facility which will allow the company to increase production and take on unique jobs for others in the local industry.

L.A. STAAL

“We are building a new manufacturing facility on our existing premises,” he explains.

“Our existing workshop is outdated and we are installing a new factory so that we can up our production by a third. We will also install an engineering centre which we will utilise ourselves and also market to other companies in our industry.

“We are busy with the third phase of the building, it was supposed to be finished last month but that didn’t happen. We’re in the process of moving over and it should be complete soon.”

Of course, projects for clients continue and while the company works on its own manufacturing facility, it must remain focussed on achieving goals for its clients. This is a particularly busy time of year for L.A. Staal and Lambrechts details

projects that are under way or being discussed that will carry the company through 2017.

“We’re currently working on projects for agricultural companies in the Western Cape, mainly those in the fruit industry,” he says. “This is the time of year when the big projects start. Our business is seasonal as we work mainly for farmers. When they slowdown, our pipeline slows down. They require pack sheds or cold storage rooms to be put together in just two or three months and so our production for the entire year is probably just five or six months. We have made sure we are able to produce as we know we would lose market share if we can’t. For the rest of the year we are working on smaller projects, such as schools for the local government.

“We’re also busy talking with

the government of Senegal about potentially putting up freezer rooms for the fishing industry. There are always opportunities for people that want to work and that fills us with confidence.

“We find that it’s better to work close to home but if we need to go elsewhere then we will go, we don’t mind. We have worked in the Eastern Cape, also in the fruit industry, and we have worked in Angola and other places across the border. We would always consider appropriate opportunities, wherever they might come up,” he adds.

L.A. Staal’s construction teams are flexible and nimble, ready to quickly move around the country to suit the needs of clients. Together with a fleet of transportation vehicles and a 25 ton lift crane,

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INDUSTRY FOCUS: CONSTRUCTION

L.A. STAAL

the company has the hardware to support its knowledge and experience.

STRONG PEOPLE Considering L.A. Steel stands with its customers the whole way through a construction project, from initial design development through to final handover, the people that represent the company and work with clients on a daily basis have to live up to the sterling reputation that has been developed over the years. While Lambrechts does admit that keeping hold of the best people can be a challenge he says that L.A. Staal creates an enjoyable working environment and focusses heavily on inhouse training and upskilling.

“During downtime, we focus on training in a big way,” says Lambrechts. “I started the business in 1988 as a very small operation, with only five employees. Through the years we grew and now employ 170 people. I worked for a similar company previously but realised I wanted to work for myself. I’m happy I took the decision but it was very difficult in the beginning.

“One of the biggest challenges I faced was keeping good workers.

I put a lot of money into training people and it’s important not to lose that. I try to pay my people a very good salary and create a working place that is enjoyable – that’s almost all you can do.”

Outside of his own business, Lambrechts believes in supporting people as much as possible. He ensures L.A. Steel sources its steel from SA companies where possible and support like this is much needed in an industry facing tremendous challenge right now.

The steel industry is of strategic importance to the country and Trade and Industry Minister Rob Davies told government counterparts recently that the

industry contributes as much as R600 billion to the country’s GDP, with many other sectors relying on steel to maintain their own operations.

“We buy our steel locally and I firmly believe in supporting local industries,” says Lambrechts, knowing any further difficulty coming from the steel industry could impact on an already challenging construction landscape.

Importantly, growth is still a key word at L.A. Staal, not just internally but for clients too. “We grow with our clients. I’ve been in business for almost thirty years and I’ve had clients who I’ve worked for 28 years.

I still work with them every year on new projects and as they grow, we grow,” enthuses Lambrechts.

And after 30 years at the helm, navigating economic, political and

societal change, is Lambrechts jaded from the pressure of driving a company from nothing to become a business full of experts you can rely on?

“My sons are involved in the business and I am currently training them but that is a long process. I am still very involved with the business and I thoroughly enjoy my work,” he concludes.

L.A. STAAL 023 342 7246 info@lastaal.co.za www.lastaal.co.za

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STOCK PHOTO © XXXX

DISCOVERY BUILDING UNDER 22 CONSTRUCTION / www.wineandspiritreview.com

TIBER CONSTRUCTION

Tiber Close to Completion With Discovery Project and Remaining Positive

Amidst Tough Market Conditions PRODUCTION: David Napier

Tiber Construction is currently building the new R2.2 billion Discovery headquarters in Sandton. Alongside this mega-project, it boasts an extremely strong history and a list of completed projects that rival any out there. MD, Jose Correia tells us more about the challenges facing the company and his belief that a positive attitude will always bring success.

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INDUSTRY FOCUS: CONSTRUCTION

140 WEST STREET

//

Just two years ago, in mid2015, the South African construction industry was described as being ‘on its knees’ and ‘in a parlous state’ by the Financial Mail.

The stock prices for the listed firms had plummeted, revenues had decreased and demand was dry. The effects of the global economic slowdown were very real and the harsh conditions were compounded for the big players by fines that had been handed out in 2013 for collusion and price fixing offences.

The outlook was not pretty.

2016 brought renewed optimism, with a slight upturn in the global economic climate (albeit overcast by the wave of global political impossibilities becoming reality) and a number of new projects being announced, but the overall picture remained bleak.

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The start of 2017 saw President Zuma once again commit to increased spending on infrastructure and development in his SONA but for those active in the construction industry, the number of projects in the pipeline remains slim and the environment is extremely challenging.

But challenging doesn’t always mean bad, and there are companies who have remained positive and who are enthusiastically searching for new opportunities; companies which are not as cumbersome as the ‘Big 5’.

Sandton-based Tiber Construction has a number of exciting megaprojects underway and is confident about securing future contracts, and Managing Director Jose Correia says that although times are certainly tough, those businesses that are able to remain positive and find

opportunities are the businesses that will ultimately thrive.

“People are looking for opportunities and I always believe that there are opportunities in the midst of adversity. Many people are risk averse and the challenge is finding those who see the opportunities,” he says.

“There’s a lot of uncertainty, and developers are finding it more difficult to attract international tenants. We are currently tendering on various projects and in negotiations for several others, as we need to replace the contracts that are nearing completion. We’re hoping to secure three projects that would commence by mid-June/July 2017. As tough as the market is, there are developers that have approached us with potential opportunities, so we’re confident. There is work out there but getting things started is taking

TIBER CONSTRUCTION

longer than normal.

“We have our ears to the ground and we are aware that listed businesses and big corporates are really struggling in the current environment.

“As an emerging, commodity based market, we feel the ripple effects from what happens in Europe and the West. Most of the buildings we work on are for big corporates and they have international exposure and that filters through to our market.

Industry pressures are driven by South Africa’s unique and constant political uncertainty, but that is changing due to global political uncertainty which I believe will unlock future investment in the country.”

BUILT IN HISTORY The success that Tiber Construction has realised in the past decade is a result of the reputation that has been developed over the past 66 years.

The company has experienced ups and downs, and has endured through economic, political and societal change. Established as a small familyrun construction business back in 1951

by Paolo Rivera, Tiber Construction has Italian and Portuguese roots with a history of partnership between the Rivera and Cardoso families that spanned six decades and two generations. Gaspar Cardoso joined Paolo Rivera at Tiber in 1955 and Francesco Rivera joined the business in the late-60s. Gaspar’s son, Fernando Cardoso, joined the business in 1981 and is the current CEO of the Tiber Group. Jose Correia became part of the team in 1994.

The business flourished from the mid-70s and whilst construction has always been the engine of the business, land opportunities were identified and Tiber’s property portfolio was steadily built up over the following 40 years. Tiber Bonvec, as it was known then, undertook all of Tiber Property Group’s developments, whilst always maintaining a strong position in the tender market and building up a list

of clients with which it under took negotiated repeat business as it still does today.

With both the development portfolio and construction business growing, in 2010, Fernando Cardoso led a management buyout of the construction business from the Rivera family and this was the catalyst for a period of superb growth and involvement in prestigious buildings.

Sadly, both Francesco Rivera and Gaspar Cardoso and passed away in the 2011 and 2012 respectively and as part of the restructuring of the Tiber Group, the property portfolio and management business was sold to Growthpoint in a R6.6bn deal in 2013.

“In 2015, we decided that we would rebrand as Tiber Construction and we made subtle changes to all branding to enhance what we are about. We now generate a lot of work

from the tender market but also negotiate many projects with existing clients with whom we have built strong relationships, due to the level of quality, commitment and excellence we deliver,” details Correia.

“Today, we continue to look for development opportunities and to get involved in deals that will contribute and sustain work flow for our construction business which remains the engine of the Tiber Group. We’ve taken up opportunities that have presented themselves and we’ve developed two recent projects by partnering with like-minded organisations. It’s a good source of income and sustainability but most of our work remains on the construction side,” says Correia.

“It sets us aside from most similar companies in our country; we have extensive development knowledge

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INDUSTRY FOCUS: CONSTRUCTION

which is beneficial to our clients. We engage closely with Clients and advise on how to improve on buildability, increasing feasibility and ultimately advise on how best to maximise development opportunities on a piece of land.”

Tiber Construction can also offer a complete development package, which is something that smaller or lesser-established companies can’t do.

“When a developer has a scheme in mind but he wants a one-stop-shop to deliver it, we offer a turnkey solution, taking away the client’s responsibility to employ agents, consultants and contractors. We can then take on the full scope; employing consultants, completing construction work, and delivering the project from start to finish which very few companies can do,” says Correia.

“Our success of the past, our quality, and the level of delivery attracts repeat business and that is what you need now as the market is tight, margins are tight and the tender market is cut-throat,” he adds.

DISCOVERY BUILDING With a long list of impressive achievements that read like a ‘who’s who’ of corporate headquarters in the Sandton area, Tiber will add further success to its portfolio with the impending completion of its biggest project to date; the R2.2 billion Discovery Life headquarters, which it is undertaking as a JV with WBHO. “We’re not the size of the listed entities; we can’t tackle many mega projects at the same time. We like to have a model where we have one large anchor project and other smaller projects that feed off the anchor project. Discovery is our anchor project; it’s a massive building. It’s 110,000 m2 of lettable space, the largest single tenanted building in the southern hemisphere,” explains Correia.

Construction of the Discovery building, in the centre of the so-

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//PEOPLE ARE LOOKING FOR OPPORTUNITIES AND I ALWAYS BELIEVE THAT THERE ARE OPPORTUNITIES IN THE MIDDLE OF ADVERSITY// called ‘richest square mile in Africa, started in October 2014 and upon final completion will become a new home to more than 6000 Discovery employees.

“We have another substantial project, a 23,000 m2 high rise building in Sandton, called 140 West Street.

“The Discovery project is a Development JV between Growthpoint and Zenprop and 140 West Street is a development owned

by Zenprop. We have forged great relationships with both developers which has resulted in us building many of their AAA grade buildings in the past.

“We are also busy with a number of retail refurbs, extensions and alterations to Centurion Mall and Benmore Gardens, both Redefine Properties.

“The first phase of handover at Discovery is set for October 2017 and the second phase handover is set for February 2018. Management will start phasing out by July/August so we are back in the market pursuing new opportunities,” says Correia.

The new Discovery building has significant green credentials and will become another Sandton development to make the most of modern technology designed to make buildings as efficient as possible.

Tiber is recognised as a builder with substantial green building expertise and Correia says that in today’s market, this is something you cannot do without.

“Initially there was resistance but as technology and systems improve, we’ve embraced it. If you’re a serious developer and you’re trying to put

AAA grade space together that doesn’t have a minimum four green star rating, you’re not going to find tenants for your building.

“As green building principals has become more user friendly, the costs have decreased. For the level of building we do, it is now become the norm rather than the exception.”

SOLID FUTURE With some predictions stating that meaningful economic growth is expected to return to the SA economy by 2020, the ability of companies to secure project deals for the next two years is important. Tiber has a number of interesting projects underway and set for the future, but the company is still searching for its next big contract.

While Correia expects to have deals secured in the coming months, he admits that one of the challenges for

TIBER CONSTRUCTION

the business is the improvement of its BBBEE status. Currently a level-6 registered company, Tiber is working hard to improve this rating in the near future.

“One of our challenges is our BBBEE status. We’re actively looking for empowerment opportunities and believe that when we find the right solution, it will unlock big opportunities for the company and our view on growth in the current market will be different.

“We have a homegrown brand of people and we have a great culture in the company. We’ve built a great foundation of people we can trust.

We believe that our employees are our biggest assets. We also have a phenomenal bursary programme ensuring that we have a consistent flow of great young students that then phase into our organisation seamlessly

ensuring continuity of our principals and culture going forward.

The MD also suggests that, even within the tight market conditions, he believes that there is enough work in South Africa and Tiber will not, at this stage, look beyond the borders for new opportunities.

“Some companies prefer to look into Africa due to a lack of local opportunities. There are huge risks as every single country has different rules of engagement. We believe there’s enough for us in the local market to keep us going for a long time so I don’t think we will take those risks at this time.”

Tiber’s strapline reads: ‘The buildings we build, reflect who we are’; it’s buildings are magnificent, highly technologically advanced, a delight for clients, and a perfect demonstration of the skill level that the company

holds. Despite the challenges of the economy, Tiber is a company you can rely on and a partner that can meet all your construction needs now, and in the future.

“We are in a challenging environment but you have to be positive. We are a private business, we run a totally different set up to the listed firms, and we believe there are opportunities. I am cautiously optimistic,” Correia concludes.

TIBER CONSTRUCTION +27 11 430 7700 tiber@tiber.co.za www.tiber.co.za

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LAASTEDRIF FARMING

Laastedrif Adding Value With

Pride & Care PRODUCTION: Karl Pietersen

The Laastedrif Farming group is looking to build on its already strong reputation by adding value to its products, improving and increasing its irrigation systems, and increasing its fruit exports in international markets. Owner and CEO, Rossouw Cillié tells us more…

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INDUSTRY FOCUS: AGRICULTURE

ROSSOUW CILLIÉ AND HIS FAMILY

//

Laastedrif Farms, in the Swaarmoed area east of Ceres in the fertile Cape Winelands, produces stone and pome fruit, a wide selection of vegetables, onion plants and seeds, operates a pome fruit nursery and is also involved in sheep farming. The group is a powerhouse in the SA agricultural sector, supplying to major supermarket groups across the country (including Shoprite Checkers and Woolworths), exporting vegetables into Africa and internationally into the UK (including Tesco) and fruit worldwide.

Laastedrif’s operations are split across seven farms; Laastedrif & Kleinvlakte, Uitkoms, Nouga, Morceaux, and Sebulon & Nuwerus. The total operation covers 20,000 hectares but just 1200 hectares are irrigated.

For more than 100 years, and through many generations, the Cillié family has been farming with pride and care in the Ceres Valley, and across Laastedrif’s land. Around 140 km from Cape Town, the town of Ceres is located in an area of the Western Cape proven for successful food production.

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The Ceres Valley produces the finest deciduous fruit in South Africa and it is also home to some of the most successful vineyards around.

Rossouw Cillié is Managing Director and Owner of the Laastedrif Farming group and is looking to increase the numbers coming from the company’s land in the coming years, while adding value and improving and upgrading the irrigation system that is so important to the entire operation.

“We’re making use of a weather forecasting irrigation model which gives us temperatures, humidity and evapotranspiration, and from that model we can decide on the necessary irrigation methods,” he says. “We’re also busy with a computerised system to monitor the moisture in the soil in our veggie business so we can have hourly details on what’s going on with irrigation and moisture in the soil.

It’s not finished; it will take some time, we’ve had some challenges as across our farms there is limited cell phone reception and that is required for this system.

“We’re busy with telecommunication companies to see what we can do with the reception so our system can connect. Currently, cell phone reception is our biggest limiter; without this problem, we would be much further down the road with this project,” he adds.

As one of the most diverse and ecologically rich regions in SA, the Ceres Valley and Laastedrif farmland has to make the most of natural resources and this can make business challenging. Irrigation is central to production, and because of the area’s unique hydrogeology, maximising water conservation helps support sensitive habitat systems. Laastedrif is set up to produce all year round and any information that can be taken back from the irrigation system helps with preparation for the future.

“This information helps us plan for the future and helps us to understand the perfect amount of water to be using during the different seasons. With veggies, we produce 12 months of the year and this information allows us to plan better. Water is very scarce and

LAASTEDRIF FARMING

we’re limited with permits as to what we can irrigate and how much water we can use so planning is very important.

We have an intensive programme in place to monitor water usage,” explains Cillé.

“We have two types of water use – run-off water that we collect in dams, and underground water. Underground water is monitored very intensively with our geologist on a weekly and monthly basis as we must protect that scarce resource. 20,000 hectares sounds like a lot of land but a lot of that is natural veld and mountains and that is very important as it gives us catchment areas for water. We can make use of all of the rain and snow when it flows during the winter time and we can store it for irrigation in the summer.

“The cost of these investments is continuous and it’s not a one-time purchase that you can step away from;

every year you have to spend more money but it’s important.”

ADDING VALUE Rossouw Cillié, like his father before him, is not only an outstanding farmer, he is also an astute business man and entrepreneur. He serves on the boards of Ceres Fruit Growers (CFG), True Cape, KORKOM, Laastedrif and other industry organisations. Under his leadership, Laastedrif has grown significantly.

“The business has changed a lot over the years,” he explains. “Previously, when it was my dad and myself, it was a single business with a few workers doing about 120 hectares of irrigated land. That was 25 years ago and now we have 1200 under irrigation so we’ve seen enormous growth. We are proud of what has been achieved but we keep our feet on the ground. I try to split my time between office and farm.

NUCLEAR packaging

Implementation of our new systems is helping to make things smoother.”

Cillé, a winner of provincial and national ‘Farmer of the Year’ awards as well as a Shoprite Checkers Supplier of the Year award, knows that the next stage in the growth of his business is through adding value to products to meet the demands of consumers – this will be the focus for the short-term future of the business.

“We’re especially keen on valueadd. With the number of lines that we grow, it’s very important to add value.

Everything that we produce, we want to keep the value-add inhouse. We want to invest much more into technology that can help with value-add – it’s part of our long-term strategy.

“Packing facilities and processing facilities will receive investment, and we’re also looking at technology that can prepare our products so they are

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INDUSTRY FOCUS: AGRICULTURE

ready to microwave or ready to eat. We want to control the value chain and make the chain from us to the consumer as short as possible. We would prefer it if the only connection between us and the consumer is the supermarket. This is so we can keep control of quality and so we can add value for the consumer,” he says.

Vertically integrating the chain in this way brings both financial and quality control elements to the Laastedrif business and makes for a more complete offering for customers around the world.

GROWING FRUIT EXPORT Currently, Laastedrif is looking to grow its export offering, especially with fruit.

The current economic climate is not creating an environment conducive for exponential business growth but Cillié emphasises the importance of finding opportunities wherever possible.

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“We haven’t experienced any real slowdown. The biggest challenge is worldwide. You must gear yourself for change. If there’s drought, you must prepare and come up with a solution; with politics and economic factors, there’s always an opportunity to be found; you must never stop thinking, you always have to search for new opportunities,” he says.

“There are extremes that you can’t control and you can’t focus on those. You must control the factors you can or you’ll never move forward.

“Our business is split into two legs; vegetables and fresh fruits. With vegetables, at this stage, we would rather add value and grow business with our current clients such as our clients in the UK and in Africa with local supermarket groups. The demand from our current client base is so big that we don’t need to grow elsewhere when we have such big opportunities already in existence. With

fruit, we have an export company with some other farmers and that company is looking at new opportunities in the Middle East and Far East.”

Fresh fruit export to ‘traditional markets’ in Europe has been slowly declining over the past three decades, now representing around 43% of all fresh fruit exports. This is why development of partnerships in emerging markets such as Vietnam, the Philippines, Thailand, Indonesia and South Korea is helping to boost fresh fruit exports, a sector which contributes half of all agricultural exports and brought in around R26 billion in 2015.

Even with development of fruit exports, Laastedrif will not be looking to increase its acreage at this time as there is significant room for expansion on current land.

“We can grow our business by 40% in a relatively short period (next couple of years) on the land we have so I don’t

LAASTEDRIF FARMING

think we will invest a lot in new land except if an exciting opportunity comes our way we will always explore,” says Cillié. “We want to make maximum use of what we have and grow our production from 1200 to 1500 hectares of irrigated land. We also want to maximise income through value adding activities before we look at further punnets of production.”

MOST VALUABLE RESOURCE Across all operations, the Laastedrif Farming group employs around 800 people and Cillié is unequivocal in his view that people are the most important aspect of the business. The talents of people are key to the success of Laastedrif. This is why Cillié tries to ensure all employees are well catered for, and the family values on which the company is based are instilled across the board.

“We try and give our employees families work. We are on a farm and the

surroundings are rural so it’s not easy to find work. If our employees have children, we try to help with schooling and university and then try to give them an opportunity on the farm if possible. We also have a BEE farm where employees hold a 60% share and all employees have access to education, medical care, pensions and more. We try and give the first opportunities for employment to the families of existing employees as they grow up around the business and they understand the principles.

“Working with people is always a challenge, everyone thinks differently. We try and instil family values throughout the operation and I think we have been mostly successful doing this.

“It’s not easy; as we’ve grown, there’s been a lot more challenges. We’re not just farmers anymore; we’re doctors, teachers, uncles, grandfathers, HR, finance, marketing; everyone has to be

multi-skilled,” explains the MD. Thanks to its quality people and quality products, Laastedrif is one of the fortunate few South African farming operations to remain upbeat and positive about the future. Following the droughts of 2015 and the international credit agencies recent downgrade of the country’s status to Junk, many are facing an uncertain and unpredictable future.

Laastedrif has positioned itself on an extremely robust base and will continue to strive for growth.

“Growing our value-add offering, improving irrigation and trying to get improved yields per hectare is our immediate focus,” Cillié concludes.

LAASTEDRIF FARMING +27 (23) 316 2366 www.laastedrif.co.za

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S4 AUTOMATION & INTEGRATION

S4 Drives SA Automotive

Automation Industry

PRODUCTION: Karl Pietersen

Ambitious and innovative Port Elizabeth-based S4 Automation & Integration has outgrown its current facility and will be moving into new premises in early-2018. The move will help the business achieve its growth targets and diversify into new markets.

Founder and CEO, Vaughn Fulton tells us more…

//

Last month, at the National Association of Automobile Component and Allied Manufacturers show in Durban, Minister for Trade and Industry Minister Rob Davies reminded of the importance of the country’s automotive sector. “The auto industry is key to the future of manufacturing in this country,” he said. He stressed the importance of local input in the auto industry and cited Australia’s industry as an example that had all but disappeared thanks to a lack of support.

The automotive sector contributes around 7.5% of GDP and employs approximately 113,000 people directly, making it vital to ensuring economic growth. Critical in the auto value chain is the automotive component

segment, the most labour intensive sector, accounting for around 72% of the total. South Africa has some of the world’s most advanced and experienced component manufacturers and there is demand from not only the local market but internationally too.

Port Elizabeth-based S4 Automation & Integration has been supplying the country’s big auto manufacturers for over 20 years.

The company is a service oriented organisation that offers superior turnkey automation and machine building solutions. While the current economic climate is not encouraging significant growth from many businesses, S4 is expanding and founder and CEO, Vaughn Fulton puts the current success down to a strong automotive industry.

“There hasn’t been any real

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INDUSTRY FOCUS: AUTOMATION

growth in the past year and South Africa has been stagnant. However, the automotive industry within the country is holding its own,” he says. “A Chinese company announced a major investment in Port Elizabeth, new model programmes have been announced by existing players, and my feeling is that even with our political challenges, South Africa still offers good value to the global auto industry. We have attractive labour rates, you will find decent expertise in the country, and there are good leaders located here.”

Thanks to a unique product and service offering, S4’s expertise has been in demand for some time and with new opportunities opening up and important relationships with European partners growing all the time, S4 is moving into a new office building to bring all departments under one roof and leave room for further development.

Originally scheduled for completion in January 2018, construction of the new office is underway in Fairview off Willow Road in Port Elizabeth.

“We are currently quite segmented.

We’ve outgrown our current premises and had to move our software department into additional premises which is around 8km away and that’s not helpful from a management perspective. Our new facility will put all office staff and manufacturing in one place. It’s a 3000 m2 facility on 6500 m2 grounds.

“We are slightly delayed and we’re probably looking at April; everything is underway and we will open in April 2018,” says Fulton.

TRULY SOUTH AFRICAN For more than two decades, S4 has been building a reputation for delivering quality, and customers in the automotive and automated production industries know that calling on S4 will result in a seamless, end-to-end service incorporating cutting-edge hardware and software expertise. But the company hasn’t always been an industry leader; in

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its early days back in 1994, Fulton and his business partner, the late Hilary Fisher, ran the operation from a small house in North End Port Elizabeth.

“Our primary focus at that point was electrical check out system testing for motor vehicles. That involved intercepting a battery current while telling the driver which units to switch on and then ensuring the consumer - whether its lights, wipers or any electrical consumer - was drawing the expected rated current and therefore fully operational. We could quickly detect blown park lights or similar using this system. That was primarily with VWSA,” he explains.

In the early days, growth was relatively slow and after three years the company employee count was around six people. In 1996, as the country changed, the company received a real boost after agreeing to a partnership with a German international electronics company for Africa, DSA. “When I went to Germany I explained my situation and said I wanted to act as partner with potential for work for VWSA. I said, ‘VW will place the order with me, you send me the equipment, and when they pay me, I’ll pay you’ and they just laughed at me. I didn’t know the financial system at all. Fortunately, trust prevailed and they gave it a shot and it worked well with the relationship growing.”

Having a close relationship with the country’s automotive manufacturers, and now with the backing of a significant European partner, S4 began to realise further opportunities for expansion.

“Electronic engine management control units started to emerge in the market and they better control the efficiency of the engine but they needed to be programmed so that was a natural migration for us. We continued to work with DSA, they would send the equipment and we would do all the local programming for VWSA. We grew and started working with GMSA and a few other companies too,” explains Fulton.

GROWTH & DEVELOPMENT Over the years, S4 became a reliable and consistent supplier to the industry and used its expertise to solve problems as they arose.

“Being onsite in the motor industry, mainly with VWSA in the beginning, allowed us to see other opportunities.

We had expertise and they would ask us to look at various other aspects such as vehicle tracking systems etc. We continued to grow and started training people with new skills, adding more people into the plants and gaining maintenance contracts for high-level electronic support equipment in various plants,” says Fulton.

A further catalyst for growth came in 2008 when S4’s German partners decided to solidify the relationship between the two companies by taking a shareholding.

“My original partner retired eight years ago and when his shares were on the market, DSA bought in with a 30% shareholding. The business case for this is the Rand and the labour rate in SA offers much better value than in Europe so they would use our guys to go around the world and sub-contract for them. This model worked for us so we partnered with roll and brake and wheel alignment company BEP in Belgium on the same basis.”

In 2012, the company began investigating different opportunities, specifically in industrial turnkey automation.

“We continued to look for expansion opportunities and we had software, process and automotive expertise so the next natural step was to build PLC (programmable logic controller) panels for automation.

To offer a full-suite of services, we partnered with Mosmech Engineering for all the mechanical bits and pieces but the market didn’t take to it because we were two separate entities and people wanted a one-stop-shop. We then found ourselves in the fortunate position of having the opportunity to purchase Mosmech outright and from

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Centurion, Durban, Rustenburg, Port Elizabeth, Vaal Triangle, Klerksdorp, Richards Bay, Lydenburg, Cape Town, Northern Cape, Namibian Subsidiary

INDUSTRY FOCUS: AUTOMATION

there the business soared. We grew from 45 to 170 people.”

S4 moved from a small to a medium sized company overnight and positioned itself for diversification and further growth. Part of the challenge was combining the cultures of the two different companies into one unified automation company. “Initially, there was a lot of finger pointing between the electrical and mechanical departments, but some serious teambuilding soon sorted that out.

“Now, of our 170 people, around 30 are working solely for DSA here in SA and eight of them are travel engineers, working around the world doing service and installations for DSA. Around five software engineers are working solely for BEP. “Building these relationships takes time, especially with European companies. We need all the source code and all intellectual property before we can help as that is essential for writing

//WE ARE DEFINITELY ONE OF THE AUTOMOTIVE AUTOMATION FRONTRUNNERS IN THE EASTERN CAPE// and modifying programmes. That is a big ask and there is obviously a trust barrier to break that was a real challenge but I think we done that very well and are on extremely good terms with all our partners with high levels of trust,” says Fulton.

None of this expansion would have been possible without the success that the company created within South Africa’s automotive sector, and the skillsets that S4 employees have displayed constantly over the years.

The current levels of expertise within the organisation, and the relationships that have been developed have created a robust platform from which S4 can continue to grow.

ORIGINAL HOME OF S4 AUTOMATION IN 1994

NEW HOME OF S4 AUTOMATION FROM 2018

INDUSTRY LEADERS “We are definitely one of the automotive automation frontrunners in the Eastern Cape, there’s no doubt about that, but there is strong competition in certain areas” admits Fulton. “Some of the competitors have been around much longer and some play in offshore markets and with less focus on the local market. We are definitely the strongest in Industrial software as we have learned a lot from our German partners.

There are well-skilled smaller companies that we do compete with but we are fortunate to be able to tackle sizable project now.”

Along with the opening of the new facility in Port Elizabeth, S4 will also

//THERE HASN’T BEEN ANY REAL GROWTH IN THE PAST YEAR AND SOUTH AFRICA HAS BEEN STAGNANT. HOWEVER, THE AUTOMOTIVE INDUSTRY WITHIN THE COUNTRY IS LOOKING UP// 38 / www.enterprise-africa.net

S4 AUTOMATION & INTEGRATION

look to bolster presence at its support bases in Pretoria and Durban. With the industry growing across SA’s borders, S4 is also keen to investigate opportunities on the continent.

“We’ve just appointed a dynamic manager in Pretoria from our Port Elizabeth office and we will focus heavily on the Gauteng region in the second half of this year.

“East Africa is showing a lot of promise and growth; a lot of South Africa’s local motor manufacturers are opening up small operations in East Africa and that will open doors for us.

“We also meet regularly with our German partners as they are constantly changing their products. DSA in particular has no mechanical wing to their business and we see synergy between our operations so we’re not ruling out further collaboration to offer them automation solutions,” says Fulton.

Of course, expansion of this kind will not be a distraction for the company’s talented people but Fulton does state that effective HR

management will be a key strategy for the business as it grows into the future.

When asked what has been the key ingredient to the success of S4, “I have to say surrounding ourselves with the right people. We have an extremely good culture within the business, largely thanks to our general manager and visionary Andrew White, who has been a wonderful asset to the company,” says Fulton. “I could be hit by a bus, but if Andrew is hit, we would be in trouble.

The biggest challenge that we face going forward is retention of our skilled people and the attraction of skilled people, especially in the area of design and PLC programming.

“10 years ago, there was a good pool of people to choose from but today that pool has waned completely and it’s a very challenging process to find good staff. We do have a good relationship with the University of Port Elizabeth and we do earmark talented students and help them with bursaries.

“We make investments in training but we do have the problem of

poaching by companies who can offer higher salaries, including the offshore markets” he adds.

Despite this challenge, S4 remains a company that has the ability to grow - creating employment, driving innovation and creativity and bolstering the reputation of SA expertise in international markets. Thanks to its high-quality systems and solutions, its ability to build and maintain lasting relationships and a history of excellence, the future is looking bright.

“The company is in very strong position and we are excited about the future but we will continue to closely monitor the economic situation and the health of the automotive industry,” Fulton concludes.

S4 AUTOMATION & INTEGRATION + 27 41 451 1250 sales@s4.co.za www.s4.co.za

www.enterprise-africa.net / 39

AMPLE INSURANCE BROKERS FOUNDER & MD EILEEN STOFFBERG

AMPLE INSURANCE BROKERS

The Benchmark For Service Delivery In

The Insurance Industry

PRODUCTION: Manelesi Dumasi

Ample Insurance Brokers is celebrating its 10th anniversary and Founder and Managing Director, Eileen Stoffberg is toasting a decade of delivering the highest quality products and service to customers across the country.

www.enterprise-africa.net / 41

INDUSTRY FOCUS: INSURANCE

//

The South African insurance industry is a fantastic business to be in. It’s a sector with major opportunities, there’s major established players but there’s room for new entrants, there’s a talented employee base, and a customer base which is growing and changing every day. The industry in SA stands as one of the most advanced in the world and boasts one of the highest premium-to-GDP ratios and a wide cross section of wellregulated and innovative insurers according to research from the Oxford Business Group.

In recent months, Enterprise Africa has explored the success that some highly recognisable international brands have achieved in tough market conditions, with most citing innovation as the key to success, and this month hear from an established but growing player, Ample Insurance Brokers,

42 / www.enterprise-africa.net

the Johannesburg-based company that specialises in vehicle policies.

Of course, competition is rife in this booming sector and each business has to separate itself from the rest so Ample has opted for a firm stance on quality service delivery and an innovative approach to its HR strategy.

To date, these ideals have helped the business reach the 10-year mark but Founder and Managing Director, Eileen Stoffberg believes there are still big opportunities for growth.

“Our vision is to set the benchmark for service delivery in the insurance industry of South Africa.

“Approximately two thirds of vehicles on South African roads are uninsured and so we are excited to start offering a new product which has recently been developed by one of our business partners targeting the uninsured portion of the market.”

That number of uninsured

equates to more than 11 million cars, with another 800,000 cars being described by South Africa’s Automobile Association as ‘unroadworthy’. Of course, uninsured motorists leave themselves open to serious financial penalties if they are involved in a road incident and this can make life extremely difficult.

“Paying for repairs and recovering costs after a crash can be a slow, painful and expensive process. This will potentially leave you without transport or reliant on public transport, where it is available, meaning your crash and the result of your being uninsured, will impact on your life in significant ways,” said the AA. But why are people driving uninsured? Is it because of cost? Or availability of products? Or ignorance of the importance of cover? Or perhaps the fact that insurance remains a ‘grudge purchase’?

AMPLE INSURANCE BROKERS

Whatever the case, the AA reminds: “People may argue that the costs of insurance are simply too high. Our view is that the costs of non-insurance are higher.”

Safety awareness group, Arrive Alive reiterates: “South African vehicle hijackings and road crash statistics provide more than enough evidence to the importance of vehicle insurance.”

Ample Insurance believes that each client has their own individual insurance needs and, in an effort to reduce the number of uninsured drivers, offers a range of different options to suit everyone.

“We take what we do very seriously,” says Stoffberg, “and subsequently we are always looking for products in the market that will suit our clients’ changing needs.

“Our aim has always been to offer everything a client could need around insurance. Hence the name Ample -

more than enough!”

The company has built a reputation in the industry for being trustworthy, innovative, professional, connected, reliable, modern and giving personal attention, and over the years Ample has built a customer base that spans all the country’s provinces.

With economic uncertainty dampening the appetite for growth from many of the international companies that are headquartered elsewhere in the world, opportunities for local players with regional knowledge and a finger on the pulse are widespread and Stoffberg is keen to take advantage.

“We haven’t been overly effected by any economic slowdown and we are not concerned. I believe South Africa has so much to offer and so many opportunities for young entrepreneurs.

“We are light and nimble and can

easily adjust to changes in the market.

I believe this sets us apart from our competitors.

“I believe that in general people want value for their hard-earned money, regardless of the state of the economy. As a broker, we have the benefit of being able to offer the customer many different products from different insurers as opposed to a direct insurer which can only offer one brand,” she says.

A HISTORY OF QUALITY SERVICE Ample Insurance started its life back in 2007, pre-global financial crisis and before recent legislations that have disrupted the industry came into place, and 10 years later it is a very different company but committed to the principles on which it was founded.

“We are a very fast paced innovative company,” says Stoffberg.

“We adapt together with our clients’ needs.

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INDUSTRY FOCUS: INSURANCE

“I started the business from a small rented space when I was 24. I think the only thing I owned then was a printer. The rest was all on loan. I believe my sales reputation opened many doors in the beginning. And here we are ten years later!

“My primary experience has been in the insurance industry. I started working in the industry when I was 17 years old selling short-term insurance policies.

“I have always been very customer driven and knew I would be able to be as a successful entrepreneur as I was an employee.

Being young, innovative and versatile, the only way to bring this to the market was to start my own business.”

Today, just as in 2007, Ample puts quality service delivery at the forefront of everything it does.

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Stoffberg says that quality service delivery comes from quality people and the creation of a culture where people can thrive.

“I can attribute Ample’s success to ruthless persistence and outstanding people who are selfmotivated and do not need to be managed. We are well rounded and ensure we understand the needs of our clients.”

AMPLE PEOPLE The approximately 50 people that make up the Ample employee base are a group of young professionals who have proven themselves as a driving force in the industry.

Previously, Ample has been named as the SA Underwriters New Brokerage of the Year award and has claimed the Auto & General Hero’s Platinum award.

“It has been our company policy

not to head hunt,” details Stoffberg.

“We invest in people that have potential and help them get the experience and skills required. 95% of all Ample staff are under 35, so youth development is a great part of our business.”

The development of a positive company culture has been vital for the business as the highly competitive nature of the industry makes for an environment where poaching and high staff turnover is common. For those looking for a career with a company that is looking forward, invests in its people, is a recognised financial services provider, and celebrates success, look no further than Ample.

“We try and create a fun family environment, where we value every single person and position. Because we look for people who fit in with our culture, it is easy to keep them

AMPLE INSURANCE BROKERS

because they are happy.

“One of our success stories is a lady that started with me as a domestic worker at my house in 2006. From there, she started doing some admin work at the office. During this period, she completed her matric. She then got the relevant training and has since become one of the top sales people in the company.

Next is achievement of her full qualification,” she enthuses.

ONE DECADE DOWN… With 10 years’ experience as a business, Ample is today perfectly positioned to become the ‘go-to’ broker for vehicle insurance in the country. The relentless focus on quality service delivery, and the release of innovative new products to help fill the gap in a vastly

underinsured market make for a bright future.

Later this year, the company will officially celebrate its 10th anniversary and then Stoffberg and the team will continue planning strategies for further growth.

“The date has been penned and marked on the calendar and we will celebrate proudly,” she says.

Could the future see Ample follow the lead of many others in the industry with expansion beyond South Africa’s borders?

Global advisory firm, KPMG has called the continental industry a ‘giant waking up’, saying ‘there’s a real buzz about the sector because opportunities are immense’. Being typically ambitious, Stoffberg says that Africa “isn’t something that I have considered yet. But if the opportunity comes knocking…”

Right now, Ample is thriving, and with a culture of excellence and the ability to offer the best possible cover and the best prices, Stoffberg has created a snowball that is rolling towards the top spot in this South African industry that has so many opportunities.

“I love what I do, which they say is key to a good entrepreneur,” she concludes.

AMPLE INSURANCE BROKERS (321) 222-1488 info@ampleins.com www.ampleinsurancecompany.com

www.enterprise-africa.net / 45

JAWBONE BRAND EXPERIENCES

Jawbone: As Passionate About Your Brand

As You Are

PRODUCTION: David Napier

Leading South African activation agency, Jawbone Brand Experiences penned significant growth and achievement in 2016 and is looking to position itself for further success in 2017 and beyond. Building its client base, expanding into Africa and continuing to deliver service of the highest quality are all targets for Jawbone and CEO Sven Reinertsen.

//

The eventing and exhibitions industries in South Africa, and Africa, are big business. More and more companies are realising the potential that these modern marketing methods hold. Being able to communicate directly with your clients; with decision makers in potential client’s organisations; being able to deliver a specific message in an inventive and novel way – marketing is changing and eventing, exhibitions and experiential marketing are key drivers in this revolution.

The stats don’t lie; a study by the Association for African Exhibition Organisers (AAXO) undertaken during

2015/16 showed that estimated total income from direct, indirect and induced income over the period totalled an extraordinary R75 billion.

Around 153,000 jobs were created during the study period. Salaries paid to employees in the industry were approximately R13.5 billion and approximate contribution to national interest through taxes were around R3.3 billion. Many international companies have recognised the potential of the exhibition space with an estimated 50% of conferences and trade shows in SA now being run by foreign businesses – that figure is even higher on the continent.

But how do you make the most

of this type of marketing? How can you make eventing, exhibitions and experiential marketing work for your company, and contribute to brand and business development? First and foremost, it pays to partner with an expert and one of South Africa’s leaders in the creation of brand experiences is Jawbone.

Founded nine years ago by CEO, Sven Reinertsen, Jawbone works with major brands to create concepts and manage them through to completion.

From the design and manufacturing of exhibition stands to managing and coordinating brand campaigns or events, Jawbone aims to achieve below-the-line impact that exceeds

www.enterprise-africa.net / 47

INDUSTRY FOCUS: EVENTS

JAWBONE CEO, SVEN REINERTSEN

expectations of both consumers and brand teams.

Jawbone has realised significant growth since its establishment; starting as a one-man operation, the company is now home to more than 30 people and works with some of the country’s most recognised brands.

“Jawbone started in 2008 in Durban and we started doing some freelance work for some of the bigger agencies, getting exposure to big brands and managing the regional part of their campaigns,” explains Reinertsen. “Within a few months, we realised there was a gap in the market to set up our own company while still working for our existing clients. We would do anything from golf days

48 / www.enterprise-africa.net

to any work in the eventing space.

We were more eventing specific and we would outsource some of the larger jobs but we realised that we would lose control of quality. In the 18 months after our establishment, we set up a small operation in Johannesburg, interestingly we were working from my grandmother’s garage, so it started from nothing.

We grew, we bought more stock, and we expanded, eventually opening an official office and branch in Jo’burg. In 2011, we moved all operations from Durban to Johannesburg and we’ve been in our current premises ever since. Now, we’ve outgrown this office and from the start of 2018 we’ll be looking to move into new premises

that is double the size.”

BUILDING LASTING PARTNERSHIPS The growth of the company is a result of Jawbone’s ability to build lasting relationships. The company says that it is ‘as passionate about your brand as you are’ and works with a ‘culture of delivering service excellence’.

This is evidenced by the length of partnerships standing with current clients.

“We’ve been lucky enough to regularly partner with a couple of big brands over the years, specifically, Tiger Brands and Energade who we’ve been working with for six years. They sponsor the Comrades Marathon, the Springbok rugby team

JAWBONE BRAND EXPERIENCES

and the ABSA Cape Epic – a lot of large international sporting events that we’ve built exhibition stands for, positioned branding and handled stock distribution,” details Reinertsen.

“We’ve also been working with Unilever and the SPAR Group for many years. We handle trade shows around the country and we’re in the process of building new stands for them right now.

“We do events, exhibitions and experiential marketing. If we’re active with a client with one service, we will try and get involved with more services as that allows us to become more integrated with the business and offer clients more.

With Unilever for example, it started with just exhibition stands but now we also handle logistics and stock for nationwide brand campaigns, and through that we do work for many brands under the Unilever umbrella, everything from golf days to year-end functions to branded merchandise. We still remain focussed on eventing, we try not to move too far from our core as we know we must maintain the highest levels of service excellence,” he adds.

Offering customers the highest level of quality, alongside experience and expertise developed over the past decade, separates Jawbone from its competitors. In addition, Jawbone operates across different platforms; it’s not just an exhibition stand builder, event manager or campaign designer. The company can move across these connected but very different offerings and, if needed, can incorporate all of them into a single package.

“We play in a lot of different spaces so we face a lot of competition,” admits Reinertsen.

“There’s a lot of exhibition stand manufacturers who stick to that, they have lots of stock and not great quality. We will never be as cheap as them but we don’t claim to be the cheapest. We are quality

and execution focussed. We push value - we may be slightly more expensive but you’re getting more for your money. We’re looking for opportunities to collaborate with brands who let us do more than just build exhibition stands but that means we also have to compete with agencies. We want to be involved in strategy and have input. We do have a lot of competitors but we are uniquely positioned as we play across multiple sectors. Client direct is where relationships are built and that is how we will continue to grow.”

CREATING GROWTH Now with an established client base and geographical reach around South Africa, Jawbone is looking to expand organically. Growing out of its current home in Strijdompark, the company will soon move into bigger premises

while also expanding its operations to reach into sub-Saharan Africa.

“We have done some work in Botswana. At the Electra Mining exhibition, we have three clients that we’ve worked for there. We’ve just done a rebrand and roll-out for Bryte Insurance in Botswana. We’re also busy doing work for Chicken Express in Johannesburg and hoping to help them launch in Africa, in Zambia, Kenya and Uganda,” says Reinertsen.

“The African market is a different beast, we’ve done extensive research into African expansion and we’ve found that unless we have a largescale contract or a big brand partner that could help us establish a satellite office, managing from South Africa is a bit of a challenge. Also, regulations change and we need people on the ground, so it’s not a simple undertaking.”

圀䔀ᤠ刀䔀 䨀䄀圀䈀伀一䔀ᤠ匀 䈀䔀匀吀 䬀䔀倀吀 匀䔀䌀刀䔀吀⸀

䌀漀渀琀愀挀琀 甀猀 昀漀爀 愀 昀爀攀攀 愀猀猀攀猀猀洀攀渀琀 漀昀 礀漀甀爀 戀甀猀椀渀攀猀猀⸀ 䔀砀挀漀Ⰰ 䴀愀渀挀漀 ☀ 猀愀氀攀猀 攀砀攀挀甀琀椀漀渀 挀漀愀挀栀 愀渀搀 洀攀渀琀漀爀椀渀最 猀瀀攀挀椀愀氀椀猀琀⸀ 䌀攀氀氀㨀 㠀㌀ 㐀㐀㜀 ㌀㘀㘀㐀 簀 䔀洀愀椀氀㨀 戀愀爀渀攀礀䀀琀栀攀最爀漀眀琀栀攀渀最椀渀攀攀爀⸀挀漀洀

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INDUSTRY FOCUS: EVENTS

In South Africa, traditional media companies are becoming increasingly keen to enter the events and exhibition industry to build new revenue streams. Each year, income from declining print circulation and monetisation challenges across digital platforms means that media companies are looking for the next trend that can bolster turnover.

Eventing has proved successful for international media companies such as the New York Times and the Financial Times in London, both boasting significantly improved revenues from event related activity over the past two years. Cape Town’s Garreth Bloor, mayoral committee member for Tourism, Events and Economic Development said last year: “We have developed a track record as an events destination and the economic spin-offs from these events

50 / www.enterprise-africa.net

hold enormous benefits for the city and its residents. The direct economic impact through visitor and organiser spend is estimated at over hundreds of millions of Rand an event and this year should be no different.” Jawbone has recognised this potential and is planning Western Cape expansion in the mid-term future.

“We are no longer a start-up company, we’re well-established but we’re under no illusion that without continued hard work and quality delivery we will not be able to continue on our growth path.

“We’ll be moving to a bigger factory in Johannesburg in February/ March 2018 and a new Durban office will follow in the next 12 months as well. We partner with a company in Cape Town and that works very well but in the next two or three years we hope to set up an office there too,”

enthuses Reinertsen.

ECONOMIC SENSITIVITY Following last month’s international credit agency downgrade, South Africa’s economy is in a fragile state. Feeling the effect of global economic uncertainty and battling hard to revive confidence and investment, businesses have started to feel challenges filtering through the system and Jawbone is no exception. Fortunately, the company is coming off the back of an extremely productive 2016 and is wellpositioned for the future.

“We definitely see that people have smaller budgets and a lot more price sensitive. People have been blunt and told us ‘we’re not looking to save money, we want to spend less’,” says Reinertsen. “However, many brands understand that in a

JAWBONE BRAND EXPERIENCES

weak economy, you need to continue spending and deal with experts so that is where we position ourselves.

We had a few big contracts last year but there’s no guarantee they’ll come back this year. We have big plans but it all depends what the spending is like. In the next six to 12 months, we expect the market to tighten but as yet, we haven’t been effected too much.

“Even some of the larger events have been slightly smaller than normal recently. It’s a booming industry but the economy does limit the amount of money available. After we get through the difficult years to come, it will continue to boom in a great way.”

POSITIVE EXPECTATIONS The CEO says that exciting and large-scale plans are already being discussed with existing and new clients and, should these ideas become reality, Jawbone could end 2017 with extremely impressive results.

“We’re quoting on a few big jobs now. The Comrades Marathon with Energade is a big focus for us and our management and manufacturing team all go and spend time in Durban for this job. We’re also quoting on a country-wide rollout for an international coffee brand.

“We doubled our numbers last year and increased our profit by 700% so we are coming off a strong base. We aren’t in the mindset of just surviving; we are thriving. While others are trying to undercut us to pay their overheads, we have ambitious plans to grow. We’re confident in the ability of our team and there’s still enough money being put into the industry,” he adds.

Phumulani Hlatshwayo, General Manager at the Exhibition and Event Association of Southern Africa (EXSA) said recently: “We have long realised that exhibitions and events are a serious engine to drive job creation

and economic impact.” He added that to remain relevant and advance the industry “exhibition industry professionals need to present a clear, comprehensive business case to key stakeholders about how to achieve strategic value.” Jawbone has done this and will continue to do this.

Now a business of significant size and reputation, the tough times surrounding the birth of Jawbone are distant memories and Reinertsen and his talented team are looking forward.

“In the beginning, it was just myself and my wife. She was a talented salesperson and a brand manager and we took a gamble as I said to her I could only guarantee to pay her a salary for three months if she came and worked with me, but it paid off. We started small but we’ve been able to handle the scale and significantly increased workload.

“We’ve had a few close calls where cash flow has been tough but I believe we’ve come through that and the level of projects we are now able to quote on without dropping quality sets us apart. We’re an established business with a strong cash position and we are very positive about the future,” he concludes.

JAWBONE BRAND EXPERIENCES +27 11 792 2522 pr@jawbone.co.za www.jawbone.co.za

We provide a quality product, on me and within budget for our clients. That's why they ssck with us.

The N01 manufacturer of quality inflatables in Africa.

Over 30 years of experience and based in Johannesburg, South Africa

Tel: 011 262 2061 Cell: 083 600 4877 www.zeppelin.co.za

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BBF SAFETY GROUP CEO, SILVIO CERIANI

BBF SAFETY GROUP

Investments Secure BBF Safety’s

Industry Status

PRODUCTION: Manelesi Dumasi

BBF Safety Group is home to some of the most recognised safety footwear brands in Africa. The business is now on a growth path and is implementing strategies that will see it expand and develop to claim an industry leader position in all markets that it operates in.

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INDUSTRY FOCUS: SAFETY

//

Like many manufacturing sectors around the world, the South African footwear manufacturing industry has faced significant pressure over the past decade thanks to basement price imports coming from China that have made sustainable operations extremely difficult. Enterprise Africa has heard this from some of the countries prominent clothing manufacturers in the past few months, and it seems that footwear is no exception. Most of the big global fashion footwear manufacturers started creating their products in China a long time ago (think about Nike, Adidas and Puma) but what about safety footwear – the not always glamourous boots, steelies, leathers and hard soles. Could this industry, in high-demand from

54 / www.enterprise-africa.net

South Africa’s mining and industrial sectors, face decline thanks to the Chinese factor? According to local manufacturer, BBF Safety Group and CEO, Silvio Ceriani, this problem was the key driver behind the formation of the company in 2014.

“Our establishment came about in concerted defence against Chinese imports in the footwear industry in South Africa,” he says. “With Chinese imports growing at a rapid pace, the SA footwear industry was slowly diminishing. We first saw it happen in the casual footwear market and the same started happening with safety footwear, so much so that imports accounted for more than 50% of all safety shoes sold in the country.

“It was a concern for local

manufacturers, of which the four main competitors were Beier Safety Footwear, Bagshaw Footwear, United Frams and Wayne Plastics. Frams itself had been hit so hard that it started to become an importer of safety footwear and that was a spark behind merging to form an organisation that had some depth. We had strong brands in different parts of the market and we positioned them so we could protect ourselves and share volume – something which all factories require. We created the BBF Safety Group and we’ve been successful.”

Today, the BBF Safety Group owns highly trusted, recognised and reputable brands including; Bova, Bronx Safety, Frams, Fuel, Inyati, Lemaitre, Sisi and Wayne. Calling on experience of more than 200 years in South Africa, BBF Safety Group utilises technical product leadership, performance and quality to consistently enhance the customer service experience. With the exception of Bronx, all brands are manufactured

BBF SAFETY GROUP

in South Africa and the group has now resolved the majority of the major challenges that came about when merging the different organisations in 2014.

“It was a real challenge to bring the businesses together because of the different cultures and people’s reluctance to change,” explains Ceriani.

“We had two major challenges; firstly, companies had to adjust the culture that they were used to, and secondly, you have to mitigate against causalities of the merger. People don’t like change and when a merger happens you inevitably lose people, both weak and strong, so you have to minimise fallout.

Our merger definitely bought about challenges and we are still facing some today. From a management point of view, everyone is now on board and we have a very clear strategy and direction.

We have a good idea of what we want to do with the brands and now comes the hard work of making it all happen

– we are in the implementation part of our strategy.”

FOOT ON THE INVESTMENT PEDAL The experience, knowledge and brand equity now held by BBF Safety makes for an attractive offering. To ensure that the offering is backed up by consistent quality, the company has made investments into new systems and machinery and is implementing upgrades right now, as Ceriani explains.

“After a lot of research, we decided on a new IT system which will act as the backbone and bring together our four factories,” he says. “At the moment, we’re operating across different systems and it’s very difficult to manage four divisions utilising the different systems.

It means we have to do a lot more work to get the required information we need so we’ve done a lot of homework and selected a JD Edwards system. The next phase of the project is to implement everything and we’re hoping to have

this project up and running soon. It takes a lot of resources and time but it has to be done.”

From a production perspective, new machinery has arrived from overseas to bolster volume. “We’ve bought two machines, one is a new gum boot machine from Italy, which has been commissioned and is now operational, and the other is a new double density PU machine from Germany – a 30 station DESMA, which is also up and running, giving us extra capacity,” details Ceriani. “We’re also commissioning a double density rubber machine from Italy where we have already completed dry runs and now await the rubber from overseas before we perform additional trial runs. We have designers and mould makers coming from overseas to discuss product designs and moulds for the machine. There are new markets that we plan to enter and each market has its own requirements regarding moulds

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INDUSTRY FOCUS: SAFETY

and upper-design. We will be investing a lot of money in mould design as that is our product as we foresee a great opportunity in creating brand equity.

“We have a number of upgrades on our CAPEX list, some that we’ve bought already and some which will be replaced throughout this year. This is mainly auxiliary components for our main machines,” he adds.

SAFE TO GROW? The economic climate, that has halted or disrupted the expansion plans of many of the country’s businesses, has had an impact on BBF Safety. Customers are always looking for value, especially when times are tough, and the fear is that they could look to cheaper, inferior products to save money. Fortunately, the company remains positive and the tide continues to turn with the economy expected to return to

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meaningful growth in the next 24 months.

“Despite all the challenges, we are still moving forward and being positive. Have we come through the worst of it? Probably. The rest of this year will be tough but we are bullish about the future, expecting growth,” says Ceriani.

This growth will come from driving exports into Africa and select international markets. Internally, the company is also looking at the possibility of further mergers and acquistion activity to continue its expansion strategy.

“We’ve realised that we are now of such size that we can’t just be dependent on the local economy and therefore exports is a big drive for us. Any serious growth will come from export or acquisition. The local economy is flat and in some sectors it is negative so there is a mixed bag

that we have to adjust to.

“We’re looking at acquisitions that will happen this year – we are already quite far down that road”. the CEO explains.

African exports are key for BBF Safety and South Africa’s neighbours, Namibia, Botswana, Zimbabwe and Mozambique, will be the primary focus. However, it doesn’t stop there; the company already has a growing presence in Nigeria, Ghana, Tanzania, Kenya and Uganda where Ceriani says BBF Safety is still busy building its name and gaining traction in the market.

“Definitely Africa is our core focus but I don’t mean all of Africa, there’s some countries that we feel are conducive to good business and we will focus there along with the Middle East. Our secondary focus is on our PU gumboots and we also believe there will be other opportunities that will

BBF SAFETY GROUP

develop. For example, we recently received an order from Malaysia and we never expected that. Now we will continue to explore that region and see what other doors can open there,” he says.

BBF – THE SAFETY PEOPLE Following the merger of the various organisations that make up BBF Safety, the company now employs approximately 1200 people across manufacturing, marketing, sales and management. With the growing export division, a whole range of new machinery, and plans for increasing market share in the near future, Ceriani would like the staff count to grow although this can be challenging.

“In any organisation, people are what makes things happen - without people you don’t have a business. It’s always a challenge and its always time

consuming but it’s something we focus on. We want to attract the right calibre people and it’s a very important area for us. We’ve restructured and enlarged our sales force including a proficient export division, so we now have a lot of foot soldiers out there creating demand and that’s extremely helpful.

“The footwear industry in South Africa was an ageing industry and we are trying to attract young people but it’s very difficult. We do look for specific skills but they are scarce so we train from within, especially on the shop floor,” he says.

Currently, BBF is South Africa’s industry leader and, considering future plans, building a career with the company would be a wise move for any ambitious young South African.

The company’s tagline, “We Are Safety”, has never been more appropriate – if you need safety

footwear, BBF Safety is the go to name in the country. With the new efficiencies being delivered through the new IT platform, consistent quality and added-capacity from new machinery, increasing sales through an export drive, and a group of brands that are recognised and respected throughout Africa, this is a business with a solid base to build from.

“There’s no doubt that we want to be one of the top recognised companies in safety footwear and any other areas that we choose to operate in,” concludes Ceriani.

BBF SAFETY +27 31 710 0400 www.bbfsafety.co.za

PU Sock

12 Sugarbush Crescent, Mahogany Road , Westmead, 3600

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C VILLIERA WINES

Villiera Sparkles on

International Stage

PRODUCTION: David Napier

Villiera is a family run winery in Stellenbosch. Managed since 1983 by the Grier family, the company is planning to release new products and expand its export offering. Head of Sales, Marketing and Export and third-generation family member, Cathy Brewer tells us more‌

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INDUSTRY FOCUS: WINE

//

Villiera Wines is a modern but historic South African wine producer and wine tourism destination located conveniently in the country ’s wine -hub between Cape Town and Paarl, in Stellenbosch. The business has positioned itself among the elite of the market and produces a range of high-quality wines including white, red and sparkling varieties. It exports all over the world, has won a host of different awards, and continues to develop as a business each year.

For the past 34 years, Villiera Wines has been headed by the

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Grier family. Cousins Jeff and Simon Grier started the business in 1983 and began rejuvenating the land, planting new vines of classical local varietals. Cathy Brewer, Jeff ’s sister, joined the business shortly after the family purchased the farm and today she is a Cape Wine Master along with her brother, heading up sales, marketing and exports.

She tells us that, as a company, Villiera Wines has come a long way in the past three decades and is now a profitable, respected, community-driven, and environmentally friendly business

creating some of the best South African bubbly on the market. “ We’re a third-generation family business but the first two generations were in poultry,” she says. “My grandfather came out from the UK on a ship bound for Australia and a Dutch friend of his told him to stop and see Cape Town so he did and he stayed, going to agricultural college and starting a poultry business which grew to become one of the largest in the Western Cape. My father and uncle joined the company and later decided to diversify and plant a vineyard. We had a bush

VILLIERA WINE

cellar but we never had a winery or established name. In 1983, when Villiera came on the market, my father and uncle bought the property and my brother was a winemaker and my cousin had studied farming so they ran the business. I was in IT and gave that career up to join the company in 1987 after studying at Prue Leith’s School of Food and Wine in London. “ The first vineyards were planted in the early 1920s by French Huguenots with the name De Villiers and that’s where the name comes from. In the early

1940s, the first cellar was built but it was very small. When we bought the farm in 1983, production was around 4000 cases. It has grown a lot from then until now where we produce 100,000 cases.”

Amongst the Villiera product list you’ll find Cabernet Sauvignon, Merlot, Pinotage, Sauvignon Blanc, Chenin Blanc, Gewurztraminer, some of the best sparkling from South Africa including Villiera Tradition Brut NV and Tradition Rose Brut made by the Cap Classique method, and also a fantastic desert wine. “ We have 400 hectares of

which 180 is planted to vineyard but half of it is being returned to its natural state with indigenous trees and a wildlife sanctuary so at the moment our choice is to plant more where we can or source grapes from elsewhere.

We could plant more but that’s a seven-year project and we don’t have plans to plant in the next couple of years.”

STRONG BUSINESS CASE Villiera Wines is taking note of the current challenging business environment stemming from the economic situation in the

SIMON GRIER (LEFT), CATHY BREWER (CENTRE) & JEFF GRIER (RIGHT)

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INDUSTRY FOCUS: WINE

country. Recently downgraded by international credit agencies, and facing a dip in the value of the currency, Villiera (a company heavily involved in exports where a weaker Rand helps) continues to monitor the situation. “ We are certainly not immune; we have to work three times as hard to remain in the same place,” admits Brewer.

“However, it hasn’t affected us too much. Cape Town is buzzing – the tourists are there in big numbers.

Wine tourism is growing; we’ve seen it grow in the last year – it’s definitely on the up,” she says. “It’s a little different in Johannesburg where times have been tough but Villiera has a reputation for delivering across a number of different price points and people have a habit of going for what they know is safe when times get tough so our brand is well positioned.”

In 2017, South African wines are increasingly being singled out as among the most exciting globally and importers enjoy preferable trade agreements with some New World producing countries, including South Africa. But for Villiera, market access is not a concern right now.

The company enjoys good support locally and in export markets, making for a strong business case.

“We are profitable which is not a given in South Africa due to the competitiveness and complexity of the wine business. We have a strong brand in the local market and we got involved in bottle-fermented sparkling wine very soon after we started here and that has done well – it grew from nothing to become 40% of our business,” explains Brewer.

SUSTAINABLE An important aspect of the Villiera Wines business is the commitment to environmentally sound principles and sustainable farming practices that the Grier family have instilled

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throughout their ownership.

Viticulturalist Simon Grier has long backed any scheme that supports environmentally friendly vineyard practices and, as such, Villiera has not sprayed insecticides for more than a decade – some pest control is handled by the resident flock of 1000 Peking ducks. Over the past five years, there has also been a conscious effort at Villiera to return much of the land to its natural state. Many indigenous trees have been planted and the 220-hectare wildlife sanctuary was opened in 2009. Today, the home of Villiera Wines is also a ‘vibrant eco-system’ attracting huge flocks of guinea fowl, pheasant, steenbok, Cape foxes, grey mongooses, porcupines and the threatened blue crane.

Back in 2010, Villiera Wines installed solar panels on rooftops across the farm, further enhancing the company’s eco-credentials. The panels generate 132 KW of power, enough to fulfil the daytime energy requirements (outside of harvest time). At the time, this was the largest solar project in the country.

These efforts resulted in 2010 in Villiera’s wines being recognised by the SA Wine and Spirit Board and now all wines carry its Sustainability Seal.

People is also a big focus at Villiera. Investing heavily in people development has paid dividends for the business and has resulted in a talented and enduring workforce.

Some of the primary investments include onsite education and medical facilities, and Brewer explains that this results in success for the company.

“Part of our mission statement involves caring for our 120 people and that’s part of what we stand for along with making quality wine. There’s examples of people who were here when we bought the property who didn’t even have

a matric and they have received training and are now running various departments.

“Our education, medical and wildlife sanctuary investments are made because we want to and we believe it’s the right thing to do – we are not forced to do these things. The wildlife sanctuary does boost our tourism offer and that is helpful. We have an established wine route here and if you want to attract tourists you can do wine tasting but it’s better to have added value. if people come here and can spend extra time going on a game drive, it creates more memories that last longer.”

The investments that Villiera has made into environmental and sustainable practice, and also into its people are not simply to create an image of a ‘nice’ corporate citizen or to market the company as a ‘green’ warrior; they are part of a wider business strategy for continual sustainable growth.

“We have developed strong partnerships with Woolworths and Marks and Spencer in the UK and they prefer to work with companies who are sustainable, environmental and have credentials in place,” says Brewer. “We get a big reward from investing in people as our staff are happy because their kids are cared for and that means they stay here for a long time.”

PRODUCING FOR THE FUTURE The future looks bright for Villiera Wines and, despite the economic factors that are limiting growth for some SA companies, Brewer remains upbeat thanks to new products that are being developed, new family

Villiera

VILLIERA WINE Wines

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INDUSTRY FOCUS: WINE

//WHEN WE BOUGHT THE FARM IN 1983, PRODUCTION WAS AROUND 4000 CASES. IT HAS GROWN A LOT FROM THEN UNTIL NOW WHERE WE PRODUCE 100,000 CASES// members coming into the business, and potential new markets for export.

“We export about 30% of our production and our products go to many markets. Germany and the UK are good for us and so is Belgium. We also sell smaller amounts to Japan, Hong Kong, China, USA, Canada, Switzerland, the Netherlands, and we’ve just started in Poland. We have strong connections with our neighbours here in Africa; Namibia, Botswana, Zimbabwe, and we have good relationships with distributors in Uganda, Ghana and Reunion.

“We would like to grow our presence in Russia because they enjoy sparkling wine and we are a big bubbly producer. We would also like to see more growth in Africa, especially Nigeria where they are drinking a lot of Champagne. We

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know that Africa is tough; you have to gain the right local partner,” says Brewer.

Villiera Wines sparkling products are made using traditional French methods and the company’s Méthode Cap Classique (MCC) Villiera Tradition Brut NV uses the traditional Champagne grapes along with a 16% contribution from Pinotage. It has claimed a number of accolades over the years and was first produced by Villiera back in 1984 with the help of Champagne producer Jean Louis Denois.

Because of the success that Villiera has achieved with sparkling wine, this will be the focus area for new products in the future.

“We’re always trying to remain innovative, especially with bubbly,” says Brewer. “We weren’t the first to make bottle fermented sparkling in South Africa but we were the first

VILLIERA WINE

to do it on a commercial scale. We are also the first to create a natural, 100% chardonnay, and the first to create a rosé bubbly – there’s a lot of firsts in our stable. At the moment, we are looking at a superpremium bubbly for the top end of the market, which will be made in very small quantities. We are also looking at something at the other end of the market, that’s more fun and more for the beginner drinker.

But we haven’t even decided on names for these products yet.”

Of course, planning and preparation for new products is slightly different in the wine business and requires forwardthinking and discussion with customers because of the time scales involved.

“With bubbly, you have to plan a long time ahead. For a prestige cuvée, you’re looking at five to eight years before you even release your first products. When you’re working on something with more volume, you have to check with your big clients. If they say yes, then we always move forward as we’re safe in the knowledge we can sell some cases.”

From a Grier family perspective, the future is also bright. Although Brewer says that the next generation are never pressured to become involved with the business, and leadership positions are never held for family members, the next generation has shown an interest and is becoming involved right now. “We have the first member of the fourth generation joining the business in May as a winemaker.

His name is Xander Grier, the son of David, and he has worked in California, Tasmania, France and here in South Africa in Hermanus.”

She is also excited about the potential coming from Villiera’s French property, Domaine Grier, a small vineyard in the Roussillon region in the South of France

purchased in 2006. Varieties planted include Syrah, Grenache, Carignan, Maccabeu and Chardonnay and the vineyard receives the perfect amount of wind, rain and sunshine to create brilliant wines under the Domaine Grier brand.

“We believe there is huge potential for growth from our French property,” says Brewer. “We’re already importing some of the wines made there into South Africa but we want to really grow that business further,” she concludes.

“Our Monro Brut is my favourite Villiera product; it’s a rich prestige style of Cap Classique. With whites, I prefer Sauvignon Blanc and with reds I prefer Bordeaux style blends – we have a fantastic Syrah and Grenache from the South of France which is great.”

As the reputation and reach

of Domaine Grier continues to increase, and as the business in South Africa continues to toast success in local and export markets, the Villiera Wines brand looks set to become stronger and more in demand than ever before, despite economic challenges faced at macro level.

VILLIERA WINES +27.218652002 wine@villiera.com www.villiera.com

PERSONAL TOUCH WITH A GLOBAL REACH

Air & Sea Freight Forwarding and Customs Clearing Specialist Wine & Spirits Division Warehousing: Bond and Duty free Facilities Dedicated Consolidation service National Distribution: road & rail, heavy-lift and special transport Worldwide Agent Network Project Cargo Marine Insurance

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BASIL REEKIE, CLIENTÈLE GROUP MANAGING DIRECTOR

CLIENTÈLE

25 Years of Business Excellence

At Clientèle PRODUCTION: Karl Pietersen

The Clientele Group has been providing South Africans with affordable insurance products for over 25 years. The company’s goal is to be South Africa’s most reliable and valued financial services partner and, calling on a strong history and a talented employee base, it is quickly managing to realise this vision.

INDUSTRY FOCUS: INSURANCE

//

South Africa’s financial sector is one of the country’s most robust industries. Providing services including commercial, retail and merchant banking; mortgage lending; insurance and investment products to millions of people, through innovative and inventive new methods - financial services truly acts as a shining beacon for investors.

Backed by a sound regulatory and legal framework which has attracted many of the world’s most prominent financial institutions, South Africa’s sophisticated financial services industry is globally respected and the leader on the continent. It is a driver of the economy and a serious developer of new products and ideas that suit the growing demands of a differentiated client base.

As the country has changed, so has the market and today the demand for financial products is widespread. However, although the industry is making great inroads and bringing down the number of uninsured and unbanked, it has received criticism for being too complicated. A report published last year by the Organisation for Economic Co-operation and Development (OECD) found that, in general, South Africans had low levels of financial literacy with just 30% gaining minimum target scores. The trend was consistent in countries around the world with many countries showing low levels of financial knowledge but South Africa placed bottom of the charts.

Fortunately, there are companies that have recognised this and that have developed business models and products to suit the market place. Take Clientèle for example.

Specialising in life, health and legal products, the company prides itself on offering convenient and easy to understand financial services products to the public through various direct marketing and sales distribution channels.

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This is a business that fits perfectly within the country’s highly reputable industry and has claimed awards that demonstrate its excellence. In 2009, Clientèle was named Best Insurance Company in the Star’s Readers Choice Awards; in 2010, it claimed best rated company listed under the Life Sector of the JSE on the Business Times Top 100 Companies Survey; in 2013 it was awarded 1st position for Service Excellence in the long-term insurance industry by the Ask Afrika Orange index; from 2013 to 2015 it ranked in the Elite Top 20 in the Financial Mail Top Companies, in 2014 Clientèle ranked second in Financial Mail Top Companies; and in 2016, the company took home top honours at the fiercely competitive CCMG Awards.

“Clientèle is no stranger to industry awards,” said Henry Dlandla, Executive: Client Services. “We are consistently recognised because we remain committed to putting our clients first. To them we say, thank you for your loyalty, we will not stop trying to find new ways to improve your experience with us.”

Clientèle’s product range includes affordable funeral, health, legal, life and loan products, along with investment and wealth offerings.

Group Managing Director, Basil Reekie tells Enterprise Africa that the company has changed and developed over the years, coming a long way since its founding 25 years ago.

“Clientèle, then called Clientèle Financial Services (CFS), was founded in 1992 by Brian Benfield and Bruce Howard originally as a financial services intermediary. In 1998, we were recapitalized to form Clientèle Life, which later became the launching pad for other exciting ventures, including the IFA Business Opportunity, South Africa’s largest and most successful insurance network marketing based company and Clientèle Legal.

“Lots has changed since our establishment. We now have a staff count of approximately 1,800. Our offering was originally limited to funeral cover and now amongst others it includes savings, funeral, health insurance, legal and life products. The turnover then was also a lot smaller back then, now we have a turnover of a couple of billion per annum. We are also now a JSE-listed company,” he says.

In its early days, Clientèle spotted a gap in the market and started to exploit it through innovative marketing and new ways of selling. “There was a huge market opportunity,” says Reekie. “At the time, there was no telesales insurance provider in the market - what Clientèle did at the time was truly revolutionary. By using the previously unexploited mediums of television and the telephone, we made our simple and accessible insurance products available to ordinary South Africans using well-known media personalities.”

Thanks to this strategy, Clientèle has become a recognised, award winning South African organisation that provides shareholders with sustained growth and returns on their investments, with Return on Shareholder Equity consistently exceeding 50%, and continues to develop exciting new products.

“We are one of the bigger players in the telesales space, as well as the health insurance market, and the legal insurance market,” details Reekie. “We are also leading the way in funeral insurance as can be evidenced by our recent launch of the, first of its kind in South Africa, Ultimate Funeral product which includes our interesting Premium Pay Back Benefit. This benefit pays back all premiums on death of the Main Insured or spouse on top of the cover amount. In the last year, we added to this offering by including the option to receive 50% of the Main Insured’s

Sharing. It’s the most powerful form of humanity. It is something we are taught before we can even walk. Because in sharing lies positive growth for all. The chance to prosper. To give and receive.

It holds the promise of a strengthened society. It connects us and evolves us. From learning to getting people ready to work. From dreaming of careers to studying for them.

From having fun to meeting responsibilities. From being born free to living free. It stimulates the innovators and inspires future leaders. Sharing is something we practice everyday. We listen, we care, we design, we add value, to your life and that of others.

We empower small businesses to think big and big businesses to remember the small. There is a beginning to Shared Growth.

But there is no end. And each time we share we know that some day, in some way, it will be shared again.

When we share, we grow. When we grow, we all prosper.

Share. Grow. Prosper.

Authorised Financial Services Provider Registered Credit Provider Reg No NCRCP7

INDUSTRY FOCUS: INSURANCE

premiums back at age 65 and the rest of the premiums back on a valid death claim.”

This type of innovation, creating products to meet the needs of clients rather than creating products that are beneficial to the business, and leveraging the experience and knowledge that the company has built over the past quarter century has created an extremely strong business case which Reekie is confident will only grow in the future.

“2016 was tough for the industry,” he says. “However, we have been performing well over the last few years and have no doubt that we will continue to do so into the future. We have increased our profits by more than GDP growth every year for the last 18 years and this is something that we are exceptionally proud of.”

GROWING FROM WITHIN The aforementioned awards that Clientèle has claimed over the years are thanks to its people. Financial services is an industry built on people and firms are now looking at how they can attract and nurture people with a mindset and ideas that develop lasting relationships, creating value over the long-term.

Following the global financial crisis, investment in people has been a top priority for most serious financial players. According to PwC, ‘the commitment and behaviour of the people within your organisation will be critical in rebuilding the trust of consumers, markets and governments, without which investment, growth and profitability will not recover’.

Investing in people and developing people is vital for Clientèle as Reekie explains: “It is incredibly important, especially for us as a relatively large corporate. We are particularly proud of our staff bursary programme which has given deserving employees the opportunity to further their studies. Furthermore,

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we have programmes which allow those with leadership potential to be equipped with essential management skills, enabling an easy transition to the next level. We have made soft and hard skills training available to employees at all levels, free of charge, through our bursary and training programmes.

“At Clientèle we focus on the big picture,” he adds. “We are constantly asking ourselves how we can add value to our clients, our company and our people. The insurance industry at the moment is very competitive.

Those companies that succeed have to be ahead of the curve. At a management level, we encourage managers to reinvent their systems and processes regularly to make them as client-centric as possible. We have also taken steps to draw upon the ideas and suggestions from staff at all levels. We regularly hold innovation competitions that reward Clientèle’s brightest for their creativity and long-term thinking on real business problems and encourage them to implement their ideas.”

Traditionally, buying insurance has gone down in most people’s budget as a ‘grudge purchase’ and the benefits are not realised until a claim is necessary. This is when an upskilled, knowledgeable and passionate workforce comes into play. Claiming on a funeral or hospital policy can add to an already stressful time but if you are able to deal with award-wining customer service agents, who are clear and easy to understand, and process claims quickly and efficiently then you are likely to respond positively and potentially repeat purchase and recommend. This is exactly why Clientèle has adopted a companywide client centric approach, through its staff, to delight customers.

“Over the last year, we have continued with our ongoing programme, Treating Clients Well (TCW), to develop into an

organisation that is increasingly client centric,” explains Reekie. “We have seen significant improvements in our service to clients, as well as greater integration of this philosophy in sales, support and service teams.”

He goes on to say that the TCW programme is developing a competitive advantage for the company.

“TCW has changed the way our staff treat our clients and clients truly are starting to see this and it really is doing truly great things for our brand and reputation.”

Of course, to build a workforce that delivers quality service and follows our TCW philosophy, you first have to find people with the basic skill level required and retain them so that they can be constantly developed. Clientèle like many other organisations in the insurance industry has found that there is a shortage of skills in the industry and so is investing in educational programmes.

“The skills shortage is indeed evident within the industry. As a result, we have prioritised education for our Corporate Social Investment Initiatives. For example, since 2009 we have invested around R10 million in the IFA Bursary Scheme, offering learnership opportunities for young people. We also ensure that we attract and retain top talent,” says Reekie.

According to South Africa’s Insurance Sector Education and Training Authority (Inseta), the industry faces a number of challenges when it comes to attracting and retaining talent – mainly, a lack of interest in the industry, poaching and job hopping, advances in technology quickly changing people’s responsibilities, and lacking professionalism in the industry. This is why corporate initiatives such as those invested in

by Clientèle are so vital for industry development.

CLIENTÈLE

A PARTNER FOR LIFE As we quickly move through 2017, Clientèle is planning new products and operations in new markets to ensure it remains a relevant and reliable partner to all its clients.

“We are currently developing a new health insurance product range that we will be launching soon and we are expanding our Ultimate product range to encompass all our product categories.

When asked about Africa, Reekie said, “We would consider expanding on the African continent should the timing and opportunity be right.”

Does the company feel threatened by the current economic climate? Will this disrupt any growth plans? According to Reekie, Clientèle focusses on what it can control and influence and, as such, expects growth to continue.

“The external environment is always important and without doubt something that we always keep an eye on, however we focus on what we have direct control of which is our internal processes and procedures and our products and methods of distribution, rather than the external environment which we have little direct impact on.

“We expect to continue to perform well despite the challenging economic times,” he says.

Going forward, there are many opportunities for this industry leading organisation. According to Oxford Business Group, ‘the South African insurance market stands as one of the most advanced in the world… Much of the country remains unbanked and either uninsured or underinsured. This presents significant opportunities for local and regional players, as they look

to develop more inclusive products that meet the needs of low-income customers. In addition to providing much-needed coverage, the segment is expected to unlock substantial growth potential for insurers in the years ahead’. It’s history, product range, and quality service offering make Clientèle a perfect partner to meet the needs of this growing sector.

Even with the uncertain economic environment, Clientèle looks set to grow this year, capping off 25 years of business excellence.

CLIENTÈLE 011 320 3000 services@clientele.co.za www.clientele.co.za

An ever-changing business environment, cutthroat competition, regulatory initiatives, and a host of other challenges can derail your longterm plans. Developing and implementing sustainable strategies entails an innovative and disciplined approach while navigating immediate obstacles. QED partners with clients to help identify and address current and future challenges by providing cutting-edge actuarial and risk management services.

We are proud to be Clientèle Life’s actuarial par tners for more than a decade and wish them continued success in future.

PROFESSIONALISM | EXCELLENCE | INSIGHT +27 11 038 3700

|

www.QEDactuarial.co.za

|

info@QEDactuarial.co.za

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OMEGA RISK SOLUTIONS

Omega to Expand

in West and North Africa PRODUCTION: Karl Pietersen

Daniel Lengosane, Vice Chairman and Acting MD of Omega Risk Solutions, tells Enterprise Africa about how the company’s experience has seen it grow to become one of the continent’s most trusted security industry names, and how it is gearing up for further geographic and technological expansion.

//

Sub-Saharan Africa is a thriving region for the security industry. As we learned back in September 2016 after speaking to G4S, there’s major opportunities for companies that are able to offer first class service. There are many drivers of demand in the security business including ever-increasing numbers of imported goods (in 2010, the UK exported more goods to SubSaharan Africa than to China and India combined), many of the world’s fastest growing economies

are located in Sub-Saharan Africa, many African Governments are looking to diversify their economies away from commodity reliance, and a rapidly growing African middle class with disposable income has created huge demand for consumer goods. Combine these drivers with the diversity of potential threats (terrorism, political conflict, theft at lucrative mining operations) and you find that the challenges for the security market are substantial.

However, where challenges exist, so do opportunities for progressive,

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INDUSTRY FOCUS: SECURITY

VICE CHAIRMAN DANIEL LENGOSANE

forward-thinking companies expanding into developing regions.

Omega Risk Solutions is the perfect example of a company that has shown innovation and skill on its journey to the top of the industry. Headquartered in Pretoria, Omega Risk Solutions is a truly South African company with operations in 11 countries around the continent, whereas many competitors who operate on a similar scale are international businesses headquartered in Europe or the USA. From Director-level down to front line employees, Omega Risk Solutions has uniquely African experience sourced from military, police, political and closeprotection backgrounds. Take Vice Chairman and Acting MD, Daniel Lengosane for example. He tells

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Enterprise Africa more about his background in the security industry and how his experience has been beneficial in growing the business.

“I was trained by the ANC as a security practitioner,” he says. “I trained in Germany as a bodyguard, learning advanced driving and close-protection. In 1994, I worked for Nelson Mandela as a bodyguard for four years and I then moved to work with then-Deputy President Thabo Mbeki as Head of Security.

Eventually, I became Director of Internal Security in the Presidency.

This demonstrates the experience we have at Omega Risk Solutions.

I joined the company in 2005 and today I use my experience to source new opportunities while contributing in a decision-making capacity.

“Omega Risk Solution was

established by a consortium of risk management experts who are passionate about providing advanced, integrated security solutions to clients. These people came from a military background with the South African National Defence Force (SANDF) and also worked for G4S and other firms before later deciding to form their own company in South Africa in 2003. The management team now offers traditional security management experience gained in Africa, Australia, Europe, the Middle East, UK and the USA. We’ve been successful in Africa because of our footprint, and because of our understanding of the market on the continent, starting from South Africa.”

The company’s core offering includes: Security surveys, protection (manned guarding, monitoring and response), technology (providing a one stop turn-key solution), loss control, occupational and environmental safety, fire risk management, and first aid.

AFRICAN SECURITY In the past 14 years, Omega Risk Solutions has grown from a rudimentary manned security operation to become a supplier of integrated security solutions. Utilising the most modern, advanced and highly technical equipment available, the company provides a best-in-class offering.

“We offer integrated security solutions,” explains Lengosane.

“We integrate physical security and electronic security under one umbrella. Most clients now want to see integrated security solutions where you mix man-guarding with technology.”

In terms of video surveillance, cyber security and the use of digital technology for security purposes, industry commentators agree that

OMEGA RISK SOLUTIONS

the market in sub-Saharan Africa is still hugely underdeveloped.

Nevertheless, Omega Risk Solutions does not adopt a ‘one glove fits all’ approach. The company is aware that every client has unique requirements and, as such, every project is approached holistically yet individually. Considering the potential of the market for technological advancement and the general trends in the industry towards electronic solutions, Omega Risk Solutions remains aggressive in its approach to R&D. “We do have Directors who are very strong in the electronic field and who assist with research and development. Electronic security is a growing market across the world so we remain at the forefront of the industry as we know this is important when trying

to be competitive. Research and development is a part of us and we are linked to other companies who are very active in this space so we are always pushing ourselves with these relationships so that we have the latest equipment, the latest technology and the most advanced units available,” says Lengosane.

As a man with so much experience in this industry, and as a company with such a robust reputation, Lengosane and Omega Risk Solutions know that you cannot afford to remain stationary in this business – there’s always new opportunities to be explored and there’s always new ideas being developed. In the future, the company has ideals on becoming a global company, establishing a presence in the Middle East and further afield, but the immediate

focus is bolstering business in Africa, especially in the mining and automotive sectors.

“We have been deeply involved in the automotive industry in South Africa. We are trying to establish ourselves as the provider of choice for the automotive industry and we’re beginning to make successful inroads,” details Lengosane. “We currently have contracts with the three major companies in the industry and we are also moving quickly into the mining industry where we are working with most of the major mining houses of South Africa.

“The biggest diamond mining business in South Africa looks to us for security solutions and that industry is highly sensitive all over the world but in South Africa they look to us because of the

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INDUSTRY FOCUS: SECURITY

Omega Risk Solutions offers specialist security services including: •

Risk surveys and audits

•

Forensic and other specialised investigations

•

Information technology security

•

Integrity assessments and profiling

•

Security training programmes

•

VIP protection, protocol and safe transport services

•

De-mining and explosive ordnance disposal services

•

Drugs, explosives and firearm detection

•

Business intelligence

•

Cash management services

experience and skill that we have as a company. We are active all over the continent in the diamond industry.”

One technological advancement in particular is becoming more attractive in the mining business, thanks to the sheer size of the sites which require security solutions and Omega Risk Solutions has recognised this and is investigating potential for clients.

That advancement is drones and Lengosane explains that they could provide a helpful link in the security chain.

“Drones are becoming the most preferred method of video camera recording as they can cover a range of different areas,” he says. “They are easy to operate but there are serious restrictions in some countries because of air traffic, so there are advantages and disadvantages. I think the world is moving towards increased use of

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drones, especially in the mining sector where one site takes a massive piece of land. Using drones, with an aerial view, becomes more efficient but we will certainly still need integrated security solutions; we’ll still need bodies on the ground and cameras in other areas.

Technology is certainly helping us but we will always need integrated solutions.”

SECURING INDUSTRY STATUS The security industry in South Africa is rife with competition. However, the competitive nature of the industry brings about innovation and invention as companies vie for market share. Lengosane says that Omega Risk Solutions has managed to remain at the forefront of the industry because of its relentless focus on delivering results for the client.

“You must always think about how you can become a better

service provider to your clients and potential clients,” he says. “It’s a major challenge to stay at the front of this business in South Africa.

We currently have around 9000 registered security companies in the country. We have almost two million registered security officers, we have around 500,000 active security officers and it is a serious challenge to remain on top. It’s all about how you manage your resources.

“We believe that where there are challenges there are always opportunities. It’s a R50 billion industry and there will always be competition. We have survived because of the way we have delivered for our clients and that is the biggest testament to our business.”

The company’s next growth strategy involves gaining business in regions that have been under serviced in the past, namely West and North Africa, but this takes time and patience, and strong partnerships with reputable local organisations. “We’ve been talking to potential partners about expansion,” says Lengosane. “West Africa is a target market for us. We have a presence in Nigeria, Ghana and Gabon but we still need to enter Cameroon, Senegal and many other countries in that region. North Africa is another area we would like to get involved with.

“It is now a requirement to partner with local entities. Security is a highly sensitive industry – you deal with weaponry, you arrest people etc and most governments want to see their own people getting involved with this type of industry so we partner with locals and ensure everyone is taken care of,” he adds.

SECURE ECONOMY? “We have seen challenges and we know there are issues with the economy,” admits Lengosane. “South

OMEGA RISK SOLUTIONS

Africa is part of the global economy and is linked to the rest of the world through our multinational companies.

Whatever happens in Europe has an impact here in South Africa. Let’s say the price of gold or diamonds drops and mines have to close their operations, that affects us directly.

“However, we see opportunities.

Manufacturing holds opportunities for us. Construction has many opportunities and, as a growing economy, we will likely always have those opportunities. There are things that make us worry but there are things that we are excited about.

“If you are a company with a clear, sound strategy you are always able to source new opportunities,” he says.

PEOPLE MAKE SOLUTIONS Of course, training and development is important and Omega Risk Solutions management team places a large emphasis on effective upskilling, but Lengosane says that this is aided by a robust selection process.

“People are the engine of the organisation as without them there’s no partnership between you

and your clients.

“We currently have around 11,000 employees across Africa.

Outside of South Africa, the biggest number of employees sits in Mozambique where we have 4000 people. We also have a strong presence in Angola, Nigeria, Ghana, Tanzania, Lesotho, Zambia and other countries.”

Membership to several of the continent’s most prominent security industry associations makes for a working environment that is cutting edge. Omega Risk Solutions ensures employees are given access to the latest knowledge and developments, making them the perfect link between the company and its customers.

“We belong to SIA (Security Industry Alliance) and 85% of security companies in South Africa are members. We are SECUREX members and we attend SECUREX exhibitions to see all the latest gadgets from all over the world.

Through initiatives like this, we expose our people to the latest technology and we ensure they are happy,” says Lengosane.

+27 41 365 1125

+27 41 365 3829

In the future, the Vice Chairman and Acting MD expects the company to increase its staff count, especially outside of South Africa, in its target growth regions of West and North Africa.

Now one third of the way through 2017, Omega Risk Solutions has started the year strongly and continues on the growth path that has seen it become recognised as a true industry leader. With expansion plans in the pipeline for the future, experience that is unmatched and an unwavering commitment to providing quality, integrated security solutions that effectively meet and exceed the needs of clients, this is a company to watch, one which could hold the key for your security needs.

OMEGA RISK SOLUTIONS +27 12 541 0480 mail@omegasol.com www.omegasol.com

sales@guardsecure.co.za

www.guardsecure.co.za

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EXHIBITION CALENDAR

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

MACHINE TOOLS AFRICA Expo Centre Nasrec, Johannesburg MAY 09 – 12 MIFE Greek Campus - Cairo downtown MAY 10 – 12 AFRICAN UTILITY WEEK Cape Town International Convention Centre MAY 16 - 18 EAST AND CENTRAL AFRICA COM Radisson Blu Hotel, Nairobi MAY 17 – 18 INDUTEC Gallagher Convention Centre MAY 17 - 19 NICONEX - BUILDING MATERIALS & CONSTRUCTION EXPO Eko Hotel & Convention Centre, Lagos MAY 30 - JUN 01

EAST AND CENTRAL AFRICA COM MAY 17 | NAIROBI East Africa Com reflects the rapid convergence between the telecoms, media, broadcasting, and technology spaces. It’s a premium ICT show that connects and informs the entire East African digital ecosystem.

IPPs, consultants, contractors and regulators to source the latest solutions or to meet new clients and suppliers. Participating as an exhibitor will enable you to make crucial contacts within the African power and water industry, enter new markets and widen your network.

AFRICAN UTILITY WEEK MAY 16 | CAPE TOWN The 17th annual African Utility Week is the only global meeting place, conference and trade exhibition for African power and water utility professionals. African Utility Week offers a unique networking opportunity for engineers, stakeholders and solution providers alike.

This market leading trade exhibition is the first port of call for senior decision makers from utilities, governments, large power users,

MACHINE TOOLS AFRICA MAY 09 | JOHANNESBURG Looking for the latest machine tool products, solutions and suppliers to gear up your business for 2017 and beyond? Then look no further than Machine Tools Africa 2017.

It’s a revolution. A showcase of all that rotates, turns, cuts, forms, bends, shapes and more. It’s the place where you’ll find the most innovative products, technologies, solutions and services that this industry has to offer in machinery, tools, spares and technical support.

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UP

Delivering sustainable infrastructure that improves our world. “DOING GOOD WHILE DOING BUSINESS�

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