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Africa is an important market for Coke as it fights a street-bystreet campaign to increase per-capita annual consumption.
A new gold mine in the Free State.
a new dawn for saru
Interview with Jurie roux SArU’s new CEo.
nomad africa adventure Tours If you are thinking of taking an African adventure there is only one choice.
Why 2010 was a successful year for this iconic brand.
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The real thing: Inside Coca-Cola This month South Africa Magazine goes inside Coca-Cola, the most recognised brand on the planet. There is nothing as global as Coke; it is a billion-dollar enterprise, sold in 206 countries. Coke has been in Africa since 1928 when the first bottling plant and distribution centre were opened in Johannesburg, providing an important base for future growth in South Africa and across the continent. Today, it is in all of Africa’s countries; it is the continent’s largest employer, with 68,000 employees and 160 plants. Africa is an increasingly important market for the multi-national firm and it is in a street-by-street campaign to increase per-capita annual consumption of its beverages. This month, we also learn how Joburg-based Wits Gold is confident that it has a new gold mine after drawing resources at its shallow De Bron-Merriespruit South project in the Free State and we take a look at Destiny Africa, a multi-billion rand development, which aims to transform the Garden Route into a global business and eco-tourism destination. Away from the world of business, we look at how Durban has been cleaning up, examine how UK contemporary art gallery Saatchi Gallery aims to fundsraise for a SA wetlands project and visit Bonhams to learn more about South African art auctions.
Editor – Ian Armitage Acting editor – Susan Miller Editorial assistant - Inger Smith Sub editors – Jahn Vannisselroy Janine Kelso Tom Sturrock Alison Grinter Writers – Colin Chinery Jane Bordenave
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Production & Design
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digital & IT
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all the latest news from south africa
CULTUrE The art of conservation at the Saatchi Gallery
Inspired by the lesser Flamingo Think pink campaign, the gallery aims to fundraise for a sa wetlands project.
LIFESTYLE Durban’s pollution clean up
eThekwini Municipality’s pollution control and risk Management Department keeps big polluters under control in south Durban. Ian armitage speaks to siva chetty, the air pollution oﬃcial who set up the department over a decade ago.
BUSINESS Bonhams Art Auctions
auction house Bonhams holds two auctions of south african art every year – and the prices keep going up – with Irma stern’s work especially in demand.
Interv new CE ’s SArU
wa nd 2010 iconic bra s Why for thi year
A new te. Sta Free
in the Gold Wits gold mine
If you adventure n Africa ice. one cho
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SArU NANDo’S NoMAD AFrICA ADVENTUrE ToUrS
CoUrIErIT METro EMS ForESTrY SA NUKor ApoLLo BrICK TrANTEr HoLDINGS WITS GoLD DESTINY AFrICA BEEKMAN CANopIES SKEMA HoLDINGS ALpHA CIVILS KCArrIM INDUSTro-CLEAN www.southafricamag.com
All the latest news from South Africa Business
sales up 25
outlook stable percent
The Kagiso purchasing managers index (PMI), a gauge of the manufacturing sector’s health, was stable in February, the Kagiso Group has said. “The seasonally adjusted Kagiso PMI stabilised at a reasonably high level in February, reaching 54.8 index points,” Kagiso Trust Investments specialist consultant Theo Vorster said in a statement. Below 50 indicates contraction in the manufacturing sector, above 50 shows expansion. Vorster was pleased with the trend in employment. “The most heartening trend in the latest numbers is that the PMI employment index rose back above the key 50 mark to 51.6, indicating that the factory sector may have started employing again,” he said. New sales orders and business activity were both stable. 6
New vehicle sales improved by 25 percent in February, compared to the same month in 2010, the National Association of Automobile Manufacturers of SA (Naamsa) has said. The industry body explained in a statement that, “Aggregate industry sales had improved by 9880 units to 49,164 vehicles from 39,284 units in February last year.” Total industry sales for the first two months of 2011 were 22 percent up on the same period of 2010. New car sales showed an improvement of 34,056 units, compared to February 2010, Naasma said, while new light commercial vehicles, bakkies and minibuses improved 11 percent to 12,854 units. Naamsa said the outlook for 2011 remained positive.
to seize foreign
Zimbabwe’s defiant president has threatened to seize foreign businesses in retaliation for Western economic sanctions targeting him and his supporters over alleged human rights abuses in the southern African nation. President Robert Mugabe made special mention of Britishcontrolled banks and businesses, saying British interests controlled 400 businesses in the former British colony. “It is time now to take action and to start looking at these companies we must take over,” Mugabe told a rally at the start of a campaign to gather two million signatures for a national petition to take over the businesses.
South Africa have booked their place in the quarterfinals of the ICC Cricket World Cup following a 131-run win over Ireland in Kolkata. Ireland limited South Africa to 272-7 after asking them to bat, with JP Duminy out in the last over for 99. Morne Morkel (3-33) and Robin Peterson (3-32) starred as South Africa bowled Ireland out for 141. South Africa captain Graeme Smith said: “We put ourselves under pressure with some stupid run-outs but JP played a really good knock under pressure. Coming into the tournament there was a question mark over our lower-middle order but the guys there have played superbly well in the last two games. We’ve got one game left against Bangladesh and then hopefully three good games in the knock-out stages.” Smith’s side become the first team to qualify for the last eight from Group B. The Proteas have eight points from five matches but will have to wait to see who their quarterfinal opponents will be. If they win their final Group match against Bangladesh at Dhaka they will finish top of the group and play the fourth placed side in Group A, most likely Pakistan or New Zealand.
Scores: South Africa 272-7 (JP Duminy 99, Colin Ingram 46) def. Ireland 141 (Gary Wilson 31; Robin Peterson 3-32, 3-33). www.southafricamag.com
PRICE Cosatu to take HOUSE GROWTH STILL
Cosatu is planning to campaign against Wal-Mart’s proposed acquisition of 51 percent control of Massmart, the trade union’s general secretary said. “The campaign must be about our life or death,” Zwelinzima Vavi told delegates attending a national bargaining conference for the SA Clothing and Textile Workers Union (Sactwu) in Durban. He urged members to help halt the America’s retail giant’s takeover and force it to agree to conditions that would protect the textile industry, workers and the South African economy. He warned that the takeover would have far-reaching implications. “If it comes here, it will spend millions a day on advertisements. This means that local stores such as Woolworths, will suffer a serious knock and that will lead to retrenchments,” Vavi said. He then accused the chain store of sourcing cheap goods from countries known for exploiting workers. “The American experience tells us that they don’t treat workers well. They are vampires. We must stop them,” he said. Cosatu wants Wal-Mart to agree to abide by local labour laws, source 75 percent of goods locally and to offer better remuneration. 8
LOW: ABSA House price growth continued at its low level in February, according to the Absa House Price Index. “The average nominal value of small, mediumsized and large houses in the middle segment of the South African housing market... continued to show relatively low growth on a year-on-year basis in February 2011,” said Jacques du Toit, sectoral analyst at Absa Retail Bank, in a statement. This was for homes for Absa approved mortgage finance. “The base effect of a recovery in home values 12 months ago is a key factor in the current low level of year-on-year price growth, and is expected to remain an important factor in the first half of 2011,” Du Toit said. He forecast nominal house price growth -- where the effects of inflation are not taken into account -- of 1.5 percent for 2011. This meant prices in real terms -- which factors in the effects of inflation -would drop. The average house price was R1,494,600.
NEWSINBRIEF WE NEED Lifestyle
Crime: A petrol station manager was critically injured when one of his employees set him alight at a Kranskop Engen service station, Limpopo police said the two were seen arguing at the N1 freeway station before the incident occurred.
Government: Technology company Gijima has been re-instated as the supplier of the Home Affairs department’s new R2.1 billion IT system after being axed almost a year ago. Home Affairs minister Nkosazana Dlamini-Zuma announced that the company had been re-instated following negotiations with her department. Poaching: Rhino poaching, which we featured last month, continues to be a major problem for South Africa. Since January 2011, a total of 51 rhinos have been poached across the country. According to the department of environment 182 have been lost at the Kruger National Park alone since January 2010. Culture: Cornelius Bosch, 55, a renowned South African painter has vanished from his Pretoria home without a trace. Bosch was last seen on February 24. His disappearance has left his family and friends gravely concerned for his safety.
SA TOURISM COMPETITIVENESS
DOWN IN 2010 South Africa’s tourism competitiveness declined in 2010, according to an index released by the World Economic Forum (WEF). South Africa is ranked 66 out of 139 countries on the fourth Travel and Tourism Competitive Index released by the WEF at the Global Tourism Forum 2011 in Andorra. In 2009, South Africa was ranked 61. Switzerland, Germany and France have the most attractive
environments for developing the travel and tourism industry. They are followed by Austria, Sweden, the United Kingdom, the United States, Canada, Spain and Singapore. The tourism and travel industry in South Africa directly contributed $10.085 billion to the gross domestic product in 2010. It also provided for 372,000 jobs, according to the index’s country profile.
ON JOBS: GORDHAN South Africans need to become as “singleminded” about creating jobs as they are about cricket and soccer, Finance Minister Pravin Gordhan has said. “South Africans need to become a lot more passionate, more singleminded about what we want to do,” Gordhan explained. “If we were as singleminded on the economy as we were on the Soccer World Cup and how we pulled it off... or about the Cricket World Cup that’s going on... can we get single-minded about job creation in South Africa and transforming the economy?” As business controlled 70 percent of the economy, it should take responsibility for its role, he said. The private sector and labour, not necessarily the government, should be grappling with issues like productivity, he added. The private sector was not playing its role in growing jobs and creating opportunities, as there were too few firms that were too dominant. www.southafricamag.com
esser L e h t y b inspired hink pink T Flamingo
conservation at the saatchi Gallery aims to fundraise for a sa wetlands project
WordS PIeTer de VIllIerS
ack Handley, the famous American humorist is quoted as saying ‘Is there anything more beautiful than a beautiful, beautiful flamingo, flying across in front of a beautiful sunset? And he’s carrying a beautiful rose in his beak, and also he’s carrying a very beautiful painting with his feet.’ Words that reflect the spirit of Think Pink: The Art of Conservation, an exhibition of new works by Jeremy Houghton inspired by the spectacular Lesser Flamingo which opens at the Saatchi Gallery, UK, on 23 March. Supported by Jennifer and Jonathan Oppenheimer, the exhibition will raise funds for the Kamfers Dam wetlands conservation
project just outside Kimberley, South Africa. Mark Anderson, CEO of BirdLife South Africa and Vice-Chair of the Save the Flamingo charity will open the exhibition. “I did my first paintings of flamingos while I was working in South Africa as Head of Art at the International School of Cape Town,” says Jeremy. “South Africa has such a vast array of interesting subjects to paint, but the beauty of flamingos in flight made a huge impression on me the first time I saw them. Although I did a few watercolours of them then, I only started painting large canvasses once I was back in the UK and had the luxury of a big studio.
Saatchi Gallery cuLTure
GACe IN MoTIoN “To my surprise the flamingo has stuck with me as a body of work ever since – their elegance and grace present such a vast number of creative opportunities. As an artist they allow me to be as diverse as I want. There is an endless number of shapes, colours, lines and positions to explore – a veritable kaleidoscope of creativity to play with on a canvas,” he enthuses. His first flamingo canvas takes pride of place in British television personality Jeremy Clarkson’s house, and after Jennifer Oppenheimer bought one she introduced him to Mark Anderson, who has been a champion of the Lesser Flamingo for many years. From this meeting the idea for Think Pink: The Art of Conservation was born. Jeremy says he last visited the Kamfers Dam in January this year and was able to get up close to the birds thanks to the loan of a hide from Mark. “Generally the public cannot get close to them as the wetlands area is on private land and the fact that railway lines run pretty much on all sides makes it difficult and even dangerous to get to. This is definitely a hurdle to ecotourism, but Mark assures me that making the area more accessible is high on the agenda.”
KAMFerS dAM the facts Kamfers Dam supports the largest permanent population of Lesser Flamingos in southern Africa, with up to an estimated 60,000 birds (more than 50 percent of the southern African population). Large numbers of Lesser Flamingos are attracted to the wetland to feed due to the very high concentration of the blue-green algae in the water. During 2007/8 Lesser Flamingos bred on a purpose-built island on Kamfers Dam, producing an estimated 9000 chicks. The island was constructed by Ekapa Mining for which they received the prestigious Nedbank Capital Green Mining Award. Kamfers Dam is the only breeding locality for Lesser Flamingos in SA. It is one of only four breeding localities in Africa (the others being Sua Pan in Botswana, Etosha Pan in Namibia, and Lake Natron in Tanzania). The bird is listed as “Near-threatened” in red data books, due to a declining population, few breeding sites, and human threats to the breeding sites. Kamfers Dam’s ﬂamingos have huge ecotourism and economic value for Kimberley. The city has a Flamingo School, a Flamingo Real Estate, a Flamingo Race Course and a Flamingo Casino. Flamingos are also included in the emblems of the Sol Plaatje Municipality and the Frances Baard District Municipality.
Kimberley diamond in the rough “We have been in discussion with the management of the Flamingo Casino adjacent to the wetlands about providing viewing platforms for the site,” says Mark. “My vision for flamingo tourism in Kimberley extends to a kiosk at the side of the road with guides, postcards and conservation-related information available to tourists. Although this is still not in sight I hope that we will be able to eventually put all this in place. “Kimberley is key to promoting flamingo tourism. It is one of the few sites where it is relatively easy to view the birds. With this exhibition of Jeremy’s paintings we hope to give the preservation of the Lesser Flamingo that much needed boost,” he says.
“The dam faces three main threats - the water quality, water quantity and a proposed housing development next to the site. Currently the recent heavy rains have caused the wetlands to flood, including the breeding island that Ekapa Mining, which has been staunch supporters of the project, originally built. This means that they have to rebuild it, and consequently the online viewing camera that is usually available at africam.com is offline at the moment. The camera will be back online as soon as work is completed on the island. “Money raised from the exhibition will go a long way to conserving the dam and the flamingos, help to eventually turn this diamond in the rough into a commercial asset for the city of Kimberley and ultimately get the dam and surrounding area declared a formally protected area.”
Saatchi Gallery cuLTure
CHAMPIoN oF PINK Jeremy says his relationship with flamingos has become permanent. He has agreed to become a champion for the cause and together with BirdLife South Africa and the Save the Flamingo charity he hopes to raise as much money as possible to help this endangered species, not only at Kamfers Dam but across the world. And would readers find the prices affordable? “Our aim is to raise one million rand with the exhibition, which will be transferring to the Everard Read Gallery in Johannesburg in January and February 2012,” he says. “So, as can be expected, the larger canvasses will be on show and the prices are slightly higher. For those feeling the pinch of the credit crunch there is always the option of viewing the paintings and investing in prints.” END savetheﬂamingo.co.za birdlife.org.za houghtonart.co.uk, visit Jeremy’s gallery by appointment, (uK) 07981 655515 saatchi-gallery.co.uk, NW8 0rH www.southafricamag.com 13
Durbanâ€™s polluter watchdog
up EThekwini Municipalityâ€™s Pollution Control and Risk Management Department keeps big polluters under control in South Durban. Ian Armitage speaks to Siva Chetty, the air pollution official who set up the department over a decade ago.
Durban’s pollution clean up lifestyle
nce labelled the toxic hub of South Africa, south Durban’s struggle against pollution has made national headlines. For decades communities have been faced with “clear and present” health risks and it took government intervention, as well as a lot of hard work locally, to bring the situation under control. Durban has made huge strides. Big polluters have been reined in and eThekwini Municipality’s air pollution department has played a significant role. “The department was established after long-standing concerns about health and pollution problems came to a head in late 2000,” says Siva Chetty, the Pollution Control and Risk Management official who set up the department over a decade ago after a public outcry about pollution and health problems in south Durban. “The unit helps to monitor and license emissions from refineries and over 100 other industries in the city.” Chetty, the Municipality’s deputy head of Pollution Control and Risk Management, is the most experienced Municipal air pollution official in the city and probably the country. “It took a huge effort to get local, provincial and national government together to start tackling the problems in Durban via the Multi Point Pollution Plan,” he says. A medical study in 2002 showed that Merebank primary school children had one of the highest asthma rates in the world, and Chetty’s department has also pushed for a dedicated cancer registry in Durban to probe links between pollution and cancer in the area.
Overall sulphur dioxide pollution levels in Durban have dropped significantly in the past decade because of tougher emission control measures for big industries. “EThekwini Municipality contains just over a third of the population of KwaZuluNatal and generates 60 percent of its economic activity,” Chetty says. “Durban is South Africa’s major port city and the country’s second largest industrial hub, after Gauteng. The four major sectors of the economy are manufacturing, tourism, finance and transport. “We have had a specific focus on the South Industrial Basin,” he adds. “A municipal Air Quality Management Plan has been developed and the Municipality continually monitor and manage air quality in the area. “We’ve fought to successfully reduce harmful atmospheric emissions, encouraged cleaner production practices and promoted the benefits of a effective public transport system.” The South Durban Basin is approximately 4km wide and 24km long, extending from the Durban CBD southward to Umbogintwini. It contains a mix of industrial - heavy industry, chemical storage facilities, sewage works and a number of smaller industries - and residential areas in close proximity to each other. This was allowed to develop as a result of poor planning practices. The South Durban Basin is also a focal point of major transport routes, including highways, a harbour and an international airport. “Communities in the area started to express concern about deteriorating air
It took a huge effort to get local, provincial and national government together to start tackling the problems in Durban via the Multi Point Pollution Plan
quality as far back as the 1960s; efforts intensified in the 80s and 90s as air quality deteriorated even further. “Persistent complaints about high pollution levels, odours, chemical leaks, flares, visible emissions and health complaints ultimately led to a national response to the problem,” says Chetty. Minister Valli Moosa announced the Multi Point Pollution Plan for the South Durban Basin in November 2000. “The aim of the Multi Point Plan [was/ is] to provide an improved decision making structure for air pollution management at local government level, reduce air pollution to meet
health based air quality standards and improve the quality of life for the local community,” says Chetty. “We’ve made huge strides, specifically in air quality management.” As part of the Multi Point Plan, the department engaged with the Norwegian Institute for Air Research who provided expert input in developing the Air Quality Management System for the South Durban Basin, he adds. “A key element of the system is quality control and quality assurance of data,” Chetty says. The monitoring network is a first for Durban and South Africa. The network
Durban’s pollution clean up lifestyle
monitors industrial hotspots, traffic emissions, air concentration and air pollution in the South Durban Basin. “We also completed an extensive health study,” Chetty continues. “The aim of the health study was to determine the health of the local community and the relationship between pollution and deterioration in the quality of life of the South Durban Basin community. From that we developed appropriate air pollution management and control strategies.” A critical component in the implementation of the Multi Point Plan has been multi-stakeholder involvement, Chetty
stresses. “The Multi Point Plan represents a significant departure from the planning and implementation processes of the past, one of the key features being multistakeholder involvement. “Government, community and industry were given an opportunity to constructively work together towards a common goal,” he says. Chetty will leave his role at the Municipality shortly, moving to the private sector. He is sure it won’t be a case of business as usual for the big polluters after he has gone. For more information visit www.durban.gov.za. END
Want good Art? Buy South African
Auction house Bonhams holds two auctions of South African art every year – and the prices keep going up – with Irma Stern’s work especially in demand. Words Susan Miller pICTURES BONHAMS
e all think we know what ‘good’ art is – but it’s clear that South Africa’s modern artists – particularly Irma Stern – are simply in demand! South Africa Magazine’s Susan Miller spoke to Giles Peppiatt, Director South African Art, Bonhams about the forthcoming auction of SA art on March 23.
Has it always been so popular? We’ve been selling South African art at Bonhams for the last 15 years but it was about six years ago that we noticed that the pictures seemed to be doing relatively well so I decided to have a stand-alone sale of South African art. Since then we’ve had two sales a year and we’ve ended up with our sale this March, which I think is estimated at about £10m (around R115m). 18
What works interest people? Irma Stern, JH Pierneef, Gerard Sekoto – they’re the big names. The reason that the SA sales have had such success in London is three-fold: there is this huge South African diaspora who took their art with them. Now they want to sell them over here instead of South Africa because of the exchange controls and 14 percent VAT there. The second is that within this huge ex-pat diaspora are people who are keen to buy too. The third is that – certainly for Irma Stern, she is bought not because she is South African – but because she is a great artist just as no-one really cares if Van Gogh is Dutch or not. People who own Sterns have the chance to place them on the international market that perhaps they hadn’t had before.
Bonhams Art Auctions BUSINESS
Do sellers find you or you them?
Do you authenticate paintings?
Both. It’s my job to be in contact with all the major collectors in the field – and we advertise extensively. We are the biggest international auctioneers of South African art so business comes to us. Sotheby’s get about one picture a year and Christies the same.
It’s a lot of what I do.
How many Sterns are out there? No-one really knows. She was very prolific. I wouldn’t be surprised if there aren’t a couple of thousand works – no-one has done a catalogue of her work. It’s been mooted...
Is your background in art? Absolutely, I’ve been an auctioneer for almost 20 years here. Before this I ran the department of British watercolours , which is good training because most 19th century English watercolours aren’t signed. You are attributing work purely on stylistic grounds.
What are Stern’s attributes? Her brushwork and use of colour.
Did Stern sign all her works?
Was it important for her to be South African?
No, we’ve got a couple of unsigned works in the sale. In some cases the signature is the least important part. If you are a half-good faker, the one thing you are going to get right is the signature. The real signature is in the brush strokes, the way a picture’s painted and it is very difficult for forgers to sustain that over a canvas.
At the time, yes. South Africa then was politically and geographically isolated – culturally too – so she came to Germany, mixed with German painters and went back to South Africa painting in a different style to other artists there. She worked in her own style. Had she been painting in London or Paris it wouldn’t have stood out as much.
And the subject matter she chose? She painted throughout southern Africa and the subjects she painted in Zanzibar and the Congo weren’t available to other artists at the time. Certainly during the war it was more difficult so that meant she was painting very individual subjects. It is her African subjects that I think are most interesting and gave her works the elements no-one else had.
Re the auction – how does it work? Our March 23 sale catalogue should be out about a month before the date. That is distributed to all the people we have on our lists. The exhibition is put on view for about four days prior to the auction. Anyone can turn up and look at the paintings. The buying public want to be sure it’s in perfect condition so you can inspect them properly. We have the auction on the Wednesday at 2pm and at 6pm. At 2pm we sell the works between £2000 (R22,500) to about £100 000 (R1m) and from 6pm the works from £100 000 (R1m) into the millions.
Can anyone attend? Yes. If people are intending to buy they ought to ensure they inspect the picture and are happy with the condition of the work. Thirdly they need to register online or in person and we will take addresses and bank details. 20
All about irma (1894-1966) She was and is a major South African artist who achieved national and international recognition in her lifetime – and whose works are now highly sought after. Born in 1894 to German Jewish parents in SchweizerReneke, a small town in the North West Province of South Africa, she held almost one hundred solo exhibitions during her lifetime both in South Africa and Europe: including Germany, France, Italy and England. Her style evolved over the years. She was a very versatile artist, and worked in oils, water colour, gouache, charcoal as well as ceramics and sculpture. Accepted in Europe, her work was unappreciated at first in South Africa where critics derided her early exhibitions in the 1920s with reviews titled “Art of Miss Irma Stern – Ugliness as a cult”. Her method of working demanded intense concentration. She often put up a sign saying “Do not disturb” and proceeded to paint while chain smoking and drinking strong black coffee. She generally framed her own work, packed exhibitions and arranged sales herself. Irma became acknowledged as an established artist and from the 1940s achieved success locally. She described art production as: “I work a long time at a picture in my head... I never touch the canvas after it is finished.” Often the outline of a composition was delineated in blue. The use of thick paint sometimes applied with a palette knife creates a sense of emotional intensity expressed in the choice of subject matter, be it landscape, portrait or still life. As an adult she travelled extensively in Europe and explored Southern Africa, Zanzibar and the Congo. These trips provided a wide range of subject matters for her.
Bonhams Art Auctions BUSINESS
Do you do a bank check? We normally take credit card details to get people’s credit rating. Then they get a paddle number and a paddle to bid.
How do people bid? There are about three or four ways – in person or you can leave a commission bid, essentially a written bid so we can bid on your behalf. Some people like to bid by phone either because they can’t attend or they don’t wish to attend or be identified. A member of Bonhams staff will be on the phone bidding for them. The fourth way is online bidding, which the auctioneer keeps an eye on. It is a big – and growing – part of our business.
What is your big piece in this sale? A Stern estimated at £1.5m to £2m (R17m). It’s a large, 1954 Zanzibar oil of an Arab priest within an original Zanzibar frame. It was done on her 1945 trip – she produced only about five of these large oils of Zanzibar. We sold Bahora Girl in our sale in October for £2.3m (R26m) and I hope this one will make more.
She is a huge artist? Stern is an artist of international reputation. She‘s about the third highest female artist to be sold at auction ...with Marlene Dumas, also a South African probably the second most valuable woman artist behind Natalia Goncharova, a dead Russian artist. Dumas, who lives in the Netherlands, is the world’s most expensive living female artist.
Will SA art auctions carry on? Yes, I’m not sure we’ll see quite such dramatic price increases but I think we will still see a strong demand. END www.bonhams.com/eu www.irmastern.co.za www.southafricamag.com 21
inSiDe cocA-coLA Africa is an important market for Coke as it fights a street-by-street campaign to increase per-capita annual consumption. By ian Armitage
oca-Cola is the most geographic territory and they’re significant recognised brand on the planet. creators of opportunity in their communities, There is nothing as global driving economic development through as Coke. It is a billion-dollar employment, procurement and other product, sold in 206 countries. It has been commercial activity. 125 years in the making. But these are more than bottlers. They are Coke has been in Africa since 1929 and Coke’s partners in the true sense, sharing in South Africa since 1938 when the first the same vision and mission. bottling plant and distribution centre were The bottlers do something The opened in Johannesburg, providing an Coca-Cola Company doesn’t do: make important base for future growth in South Coca-Cola. Bottlers produce the beverages Africa and across the continent. Today, and deliver all those bottles and cans. They Coca-Cola operates in nearly all of Africa’s also distribute most of Coke’s entire line of countries; it is one of the continent’s beverages, stock and maintain everything at largest employers, with 68,000 employees each outlet. and 160 plants. South Africa is the Its impressive position is largest Coca-Cola market made possible by the hard in Africa and consistently work and commitment of ranks among the best its dedicated employees, performing countries in as well as the strength the world of Coca-Cola. of its local partnerships: Consumers love it. Cocabottlers, suppliers and Cola is the preferred bill egbe, retailers. Its main vision is brand in South Africa for President, Coca-Cola South Africa to benefit and refresh the the fourth year running, is people of Africa. in the top five best To truly succeed Coca-Cola has always employers in the known its products needed to be more than country and has high-standing in terms of products. They needed to be reminders of corporate reputation. good times and warm feelings. But for Coke, Africa is still the untold What many people don’t realise is story, and could be the big story, of the that the Coca-Cola business is actually next decade. a local business. No matter where in the “There’s nowhere in Africa that Coca-Cola world it operates, its brands are produced, isn’t enjoyed. Being in a country is easy; you packed and distributed by bottlers that are can go and set up a depot in every capital deeply rooted in the communities in which city. That’s not what Coke is about. It goes to it operates. every town, every village, every community, South Africa is no different and a key every township,” says Bill Egbe, President, contributor to Coke’s success here is its Coca-Cola South Africa. network of four bottlers: Amalgamated The potential is huge. Africa is finally Beverage Industries (ABI) (a subsidiary emerging as a viable market, riding a of SabMiller), Coca-Cola Fortune (part of hoped-for wave of improving governance and Coca-Cola SABCO), Peninsula Beverages demographics. Coke is in a street-by-street (sometimes called Forbes Group) and campaign to increase per-capita annual Coca-Cola Shanduka Beverages SA (Pty). consumption of its beverages. To do so, Each bottler is responsible for a specific Coca-Cola is applying lessons learned from
There’s nowhere in Africa that coca-cola isn’t enjoyed
its worldwide business with the hopes of having Coca-Cola within arm’s reach of every consumer. And according to Egbe, “Africa offers enormous opportunity for The Coca-Cola Company. In the last 10 years, $5 billion has been invested in the continent and an additional $12 billion is estimated to be invested by 2020.” Annual per capita consumption of CocaCola in South Africa is nearly 260 servings of 8 ounces. Mexico is 665 servings per year where an aggressive courtship of small stores helped boost per capita of Coca-Cola beverages to the highest in the world. The possibilities are huge. John Ustas, the chief executive of ABI, Coca-Cola’s largest bottler in South Africa, recently described Africa as the “best market” for Coca-Cola. He said he believes there is opportunity for the “embedded” annual growth rate for Coca-Cola in South Africa to be pushed to as much as six percent. It is currently two. That opportunity lies in the townships, he said. “We are servicing just under 70,000 customers; we believe there’s potential for 200,000,” Ustas explained. He said he sees a lot of “similarities between South Africa and Mexico” and through investment – and by basically sending more reps out to the streets – the ambitious target was achievable. ABI accounts for about 60 percent of the Coca-Cola sold in South Africa, with the rest shared by the other three bottlers. Ustas is worth listening to. Coke sees the potential too. CEO Muhtar Kent is looking to capitalise on the company’s position in Africa by adding beverage plants and developing packages and products to serve a growing population with rising incomes. To do that Coke has to get the product “close” to customers. In Alexandra, a dense township in Johannesburg, Coca-Cola has 24
done just that. Last year, ABI filled streets with drink coolers and Coke signage. To keep the coolers full, the bottler extended credit to merchants who didn’t have the capital to take on inventory. Coca-Cola’s longtime CEO Robert Woodruff said that Coca-Cola should always be “within an arm’s reach of desire.” The Company is working to ensure that Woodruff’s vision in 1923 is a reality. Coke plans to spend several billion dollars 26
Being in a country is easy; you can go and set up a depot in every capital city. That’s not what coke is about. it goes to every town, every village, every community, every township bill egbe, President, Coca-Cola South Africa
in Africa over the next 10 years as part of its plan to double, by 2020, the $100 billion in global system revenue last year. Okay, you ask, why Africa? Well, mature markets such as the U.S. and Europe are growing at slower rates than many emerging economies. Coca-Cola has as its strategy to ensure its beverages are affordable and available. In Africa, most soft drinks are sold in returnable glass bottles. Returnable bottles help keep prices down so the company can reach more customers.
Despite its plans for growth, Coca-Colaâ€™s business in Africa is about more than just maximising profits, it is based on the idea that the health of its business depends on the health and sustainability of the communities in which it operates. It has put significant resources into HIV/AIDS education, prevention and treatment programmes, water projects, recycling, and education and infrastructure improvement. In addition, Coca-Cola has invested in economic development and entrepreneurship, through the development of spaza shops, taxi ranks and car washes in the townships, and retail training and support. The Coca-Cola Africa Foundation headquartered in Swaziland, was established in 2001 as a response to the growth and impact of the HIV pandemic. Today, the Foundationâ€™s community
activities focus on four key areas central to life in Africa: water, health, education and entrepreneurship. The Foundationâ€™s RAIN (Replenishment Africa Initiative) Water for Schools programme has resulted in a nearly $4 million (nearly R30 million) investment in South Africa from Coca-Cola and the government. Coke has made a huge investment in terms of social and economic development and has a dedicated team that focuses on this market and develops sustainable small businesses. On 8 May 2011, Coke will be 125 years old. It started out in business in 1886, selling
about nine servings a day. That number is 1.7 billion now. It used to have one product; it now has 3,300 beverage products. The company says its mission is to benefit and refresh everyone touched by their business. It seems they are delivering on that promise. There is a real magic around brand CocaCola. It conjures up personal memories. Happy times had. Happy times to come. As the business expands throughout Africa that magic will rub off on many more local communities, much in the same way as it has in South Africa. END
A new DAwn For
saru South Africa Magazineâ€™s ian Armitage talks with Jurie roux, chief executive officer of the South African rugby Union (SArU), about new sponsors, revamped competitions, the world cup and the benefits of a new operational structure.
Pictures: ÂŠ Getty Images, Inc 30
he 2011 season is underway and it promises to be one of the most enthralling in the professional era. It is the inaugural season of a new-look Vodacom Super Rugby competition, new sponsorships have recently been announced and a newly restructured operational organisation is being rolled out. This is also a season in which the Springboks’ bid to retain the Rugby World Cup. One way or the other this will be a defining year for South African rugby. “This is a very exciting season for South African rugby as well as for SARU as an organisation,” says Jurie Roux, chief executive officer of the South African Rugby Union (SARU), who recently spoke with South Africa Magazine. “Certainly in South African rugby we stand on the threshold of a new era. Obviously, a new Vodacom Super Rugby format and a Rugby World Cup make this a very significant year from a player perspective, but we are also at a departure point from an operational point of view. This year we will re-engineer our operations following the merging of the amateur and commercial arms of the organisation and create a new structure more accurately focused on delivering on a revisited strategic plan. “By this time next year I expect SARU to be an entirely different organisation; working to that point is going to be stimulating, challenging but ultimately exciting.” The new Vodacom Super Rugby format features more matches with more opportunities for emerging talent with an increase in matches 94 to 125 in an expanded season that concludes on July 9. There will be 20 local derbies in each nation.
This is a very exciting season for South African rugby as well as for SAru as an organisation
“Supporters wanted more derby matches and we’ll be giving them that,” says Roux. There is a lot going on this year and keeping an eye on financial performance is one of many challenges. “Obviously we’re a business so things like bottom line are of great importance and I’ll be paying close attention to our financial operations,” Roux says. “But there is a lot going on the pitch. Will we win the Tri-Nations and the Rugby World Cup, for instance, and how will we perform in the Junior Wold Championship? And then there are the operational matters, and by year end we would expect to have a clearly defined vision and mission statement and an operational structure that speaks to SARU’s strategic goals.” Roux is excited about the upcoming World Cup and is confident of the Springboks’ chances. “We have an outstanding crop of players and a management that has worked with them for the past three years and understands exactly what is needed for success. “I am confident that we will put out an outstanding team that has the personnel and talent to win the Rugby World Cup. But you can never be confident of success – there are other good teams competing and small moments can turn the course of the very biggest games.” SARU has a “headline plan in place” to ensure World Cup success, he says, but, of course, there are a lot a Vodacom Super Rugby competition matches to play before the players become fully available to the national coaching staff for the Tri-Nations in July. Some have been critical of the number of games key players might play. But Roux is happy. “We are happy with our planning and what we have in place. The expectation is that teams will have to look at rotating their players more than previously to manage the requirements of a tournament that will be three or four games longer for some teams. And to do that the likelihood is that more 32
Juan Smith in action during the Cheetahs captains run at Vodacom Park on February 24, 2011 in Bloemfontein, South Africa
A new vodacom Super rugby format and a rugby world cup make this a very significant year from a player perspective, but we are also at a departure point from an operational point of view
players will be given a taste of Vodacom Super Rugby. “Of course, we have a chance to become the first nation to retain the trophy and to win it for a third time – so we have a lot at stake – and we are gearing towards it.” Away from the top end of the sport, SARU is doing a lot of work at grassroots level to ensure the game’s success for future generations. The dissolving of the old commercial arm (SA Rugby (Pty) Ltd) into SARU will be significant in all this, says Roux. “Developing and fostering the game at a grassroots level had been separated out from promotion and commercial
development of the game at an elite level and obviously the synergies between the two had been lost. What the change allows is the reintegration of all elements into more streamlined and focused units in which both of the former arms can benefit. We’re now in a position where the boundaries have gone and we’re much better placed to develop the game and exploit the opportunities that arise, whether they be in grassroots development programmes or in maximising returns from commercial opportunities. “The organisation had been divided into www.southafricamag.com 33
Fans line the streets to celebrate South Africa winning the 2007 rugby World Cup during a ticker tape parade on 29 october, 2007 in Cape Town, South Africa.
a professional arm, SA Rugby (Pty) Ltd, to look after commercial brands - wholly owned by SARU - which looked after amateur rugby and the development side of the game. The organisation had two governance structures and two operational heads as well as separate operations staff, although some services were shared between the two. Removing that duplication and aligning the organisation’s goals has been a significant change,” Roux explains. Earlier this year, SARU announced a five-year agreement with Absa to sponsor the Springboks. Roux is delighted. “They’re old friends of rugby having sponsored our sport through their different incarnations for more than a quarter of a century,” he says.
“What was nice was that the headline deal was done within a month of going to market, which underlined the appeal of the Springbok brand and Absa’s enthusiasm for the engagement. “We have an almost shared DNA in that we’re both major South African institutions with a footprint in every corner of South Africa and, after their long association; they understand the sport and what we can do for each other. They bring credibility, value, blue chip credentials and an enthusiasm for the team and the sport that has been proven over many years.” Roux assumed the role of SARU CEO last October. He says it has been a “stimulating” challenge, which was “exactly what he wanted.” He is heralding in a new era and is leading the restructuring of the organisation.
we have a chance to become the first nation to retain the trophy and to win it for a third time
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The Rugby World Cup means there no tours this season and the shortened Tri-Nations tournament starts in July, with the Springboks meeting Australia in Sydney before facing New Zealand in Wellington, where the team will also play the opening two matches of the Rugby World Cup. The World Cup kicks off on September 9, with the Springboks playing the first of their four Pool D matches against Wales. They also face Fiji, Namibia and Samoa. The South African season concludes on October 29 â€“ one week after the Rugby World Cup final â€“ with the final of the Absa Currie Cup. END
Finger on the
Quinton cronje, Nandoâ€™s marketing director, talks exclusively to South Africa Magazine about why 2010 was a successful year for this iconic brand. By ian Armitage
uinton Cronje is a dedicated man. The former economics lecturer turned marketing guru is besotted with the company that employs him – Nando’s. And why wouldn’t he be? Nando’s is one of the country’s most enduring and risque brands, and it sells some of the best chicken you can buy. “When the modern history of South Africa is written, there will be an entire chapter dedicated to Nando’s,” he says. Nando’s core product, which is the signature peri-peri flame-grilled chicken, is made from the freshest A-grade butterfly cut chicken, marinated for 24-hours and with excess fat trimmed off. It also prides itself on only serving food with no added colour, flavour, additives or MSG. Nando’s famed ingredient, the peri-peri, is rich in vitamin C, vitamin A, high in antioxidants and, best of all, the capsaicin in the chillies helps enhance metabolism and, consequently, burns fat quicker. It has a lot going for it. Over the last 12 months, Cronje has been pushing this point, as well as several others, and a recent campaign introduces “General Kenako” who heads the Nando’s Peri-volutionise Your Health campaign. The word Kenako means ‘the time is now’ and it is all part of a master plan to encourage the general public to adopt healthy eating habits. As fun as this campaign is, Cronje says, it isn’t his favourite. So what is? “My favourite so far was the campaign we ran during the World Cup. We have all heard of situations where a foreigner has asked whether we have lions that wander the streets or whether South Africa has supermarkets. The campaign was all about different misconceptions that foreigners have about South Africa and South Africans. We took a light hearted look at these false impressions and had a bit of a laugh at them…and ourselves.”
The campaign aimed to rally South Africans together in offering foreigners the best that the country has to offer: It was all about Bafana Bafana and making sure South Africa played the perfect host. It paid off. “We grew 30 percent over the World Cup period and we are very, very happy with that,” Cronje says. Nando’s financial year ended in February and – thanks largely to gains during the World Cup period - it has beaten budget by five percent. More impressively, it has attracted over 400,000 new customers and grown its market share from 15 percent to 16.5 percent. “We’ve had a very successful 12 months,” says Cronje. Is that success down to just advertising? “No,” Cronje explains. “Certainly not. It is the brand and the quality of food. I think that no matter what you say about advertising, consistency of customer experience is key and so is the service and product offered.” He describes the service at Nando’s as “amazing” and believes it is that which keeps customers coming back. Nando’s core product is a major factor too. “Advertising has an effect in that in brings people in, but more than anything it is the amazing chicken and the amazing people we have that work in the brand that are important,” says Cronje. “Also, we have a lot of product innovation. Product innovation has definitely attracted new customers, no doubt, especially in terms of health and wellness. “I think when it comes to the Nando’s brand there is a lot that appeals to customers,” he adds. The one area he would like to improve, though, is the youth market. “We are probably under-indexing there,” Cronje says. “We have a multi-appeal brand, but if anything I would say we have inroads still to make in the younger markets.
we always look to improve, attract new users and maintain existing standards
“That is something we are working to improve. How will it be done? I think through locations and product offering.” The key to Nando’s success over this last year has been threefold: convenience, health and value for money. “Convenience is vital,” says Cronje. “There is a need for food that is prepared in a suitable timeframe in locations that are close to where people live and work, because, you know, it really stems from the fact people have increasingly busy lives. “Health is another big factor,” he adds. “That is a consumer megatrend. The more people eat fast food, the more their need for healthier eating increases. “Finally value for money in the current climate has been extremely important. Now Nando’s is and always will be a premium brand but that doesn’t mean we can’t offer
value. You certainly get what you pay for when you come here.” Cronje would like to keep up the momentum gained in 2010 throughout 2011 and intends to ensure firm’s turnaround strategy remains on track. “We always look to improve, attract new users and maintain existing standards. “KFC is very dominant in this sector so we would really like to take a bit more of their market share. And why not? We have the quality experience and an amazing product quality. Once people experience the brand they keep coming back.” He’d like to do another major advertising campaign very soon, so keep your eyes pealed: few people keep as watchful an eye on the psyche of the nation as the good folk at Nando’s. END
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Nomad a f r i c a ADvenTure TourS
Nomad Africa Adventure Tours FeATure
if you are thinking of taking an African adventure there is only one choice, Nomad Adventure Tours. By ian Armitage
omad Africa Adventure Tours is 100 percent African owned, has a fleet of over 40 trucks, around 130 staff and 30 scheduled departures a month, all over Southern and East Africa. Nomad has run over 6,500 tours to date, which 57,500 clients (and counting) have enjoyed. It really is the only choice for an African adventure. “We started Nomad Africa Adventure Tours in 1997 and consider ourselves to be a leading example of how to run adventure holidays and experiences,” says managing director Alex Rutherford. “We remain a force in this sector, but, and this is why we are so strong, have retained the magic, the personal touch, that saw us grow so successfully originally.” He says the company was founded on “old fashioned hard work” and started from almost nothing. “We’ve learnt a lot over the years but have never forgotten the lessons learned in the early days. Personally, I learnt a lot, especially in terms of people management. “We deliver high quality tours and receive on average 4,000 positive feedback forms annually,” Rutherford adds. “Why are we a success? I think it is down to a number of things. First and foremost it is because this is Africa. Africa conjures up images of discovery, magic and adventure. People are really drawn to the continent. Africa has it all: interesting culture, warm and welcoming people, awe inspiring places, unique animals, dramatic landscapes and epic adventure. Africa has it all in abundance, it is a land of surprises and contrasts.”
Africa has it all: interesting culture, warm and welcoming people, awe inspiring places, unique animals, dramatic landscapes and epic adventure. Africa has it all in abundance, it is a land of surprises and contrasts
Nomad Africa Adventure Tours FEATURE
From one truck, two employees and one departure a month, Nomad has grown considerably. “We have done this through meticulous attention to detail,” Rutherford says.“We always keep a promise. We have mission statements, goals and objectives that we follow religiously. “Our guiding principles are quality, responsibility, accountability, integrity, honesty, service, efficiency, and fun and adventure. “We have stuck to these principles since the beginning and are confident they will steer us successfully into the future too.” Nomad strives to offer exceptional value for money, African holidays. Its size and knowledge allows it to negotiate better facilities at a better price than many other companies in the market.
“We are proud of the quality of our tours. We are fully licensed and insured and are confident that we are offering some of the best tours and services available in Africa,” Rutherford says. “Each and every adventure tour is unique and all people are treated as individuals.” What initially made Nomad stand out, and this remains a key selling point, is that it is African owned. In the early days, it was one of a few. There is greater competition of course these days, but Rutherford is proud of the company’s origins. “We live in and work in Africa,” he says. “It means that our finger is firmly placed on the pulse of the continent. This enables us to ensure customers receive the best Africa has to offer.”
Camping Backpackers Ticket Office
Delight in a choice of magical Lake Tours. . . . Where the five eco-systems come together! On board you will be hosted by your skippers and guides in South Africa’s first World Heritage Site, the iSimangaliso Wetland Park. Our boat is ideally equipped to cater for office parties, conferences, birthday parties or weddings.
We offer a wide variety of tours, charters & safari services along the Elephant Coast: • Lake Cruise bookings • Cape Vidal tours • Horse riding • Hiking trailers • Game Viewing (Big 5) • Hippo tours • Night drives • Deep sea fishing • Kayaking • Birding • Whale & turtle watching (seasonal)
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Situated on the main road, within walking distance from shops & restaurants
we are proud of the quality of our tours. we are fully licensed and insured and are confident that we are offering some of the best tours and services available in Africa
Rutherford drove from London to Cape Town in a Land Rover (the trip took 10 months), but his most memorable tour experience came when he arrived at Sossusvlei, in the Namib desert. After having all the clients excited about the desolation of the place, he found it drowned by floods, with green grass growing on the dunes. “It started raining and everyone was extremely unimpressed with setting up camp in the rain,” he says. “To break the tension we picked a suitable victim, and threw him in the mud. A massive mud bath/fight ensued resulting in 44
one of the best days on tour.” Nomad may have started as a niche, almost ‘extreme’type holiday company, but the market it entered is today very different. “It has changed,” Rutherford admits. “In the early days the travellers were nearly always young. They were very poor and very easy going. It was the traditional backpacker market. Today, our market consists of all ages across all nations and draws people who want to really experience Africa in a high value and secure group environment.
Nomad Africa Adventure Tours FeATure
“The gaps between us and our competition has narrowed, which is good for consumers as they have a greater choice,” says Rutherford. “At the same time, we work hard to be innovative to attract business. In terms value for money, being a driving force, we do have the edge on the market. This type of touring and the market that we are attracting has become mainstream. To cater for the change in the market we have created accommodated tours, which are basically identical to the camping tours except that guests stay in accommodation, i.e., a motel or hotel typeaffair. We have found these tours extremely popular with slightly older groups.” Camping tours, he says, have an average age of around 30, while accommodated tours average around 35-40. “We provide an
infrastructure that is suitable for everyone – the vehicle, the guides, the activities – but the nature of these trips and the places we go means that the amount of other options on offer is so great is that you’ll find it is suitable for everyone. For example, a youngster in their 20s who wants to do extreme sports, like skydiving, bungee jumping etc., will sit quite comfortably nextdoor to someone who is there to experience the animals and the people and may be in their 60s,” Rutherford says. “We make sure we can cater for a broad demographic.” The economic downturn has had a huge affect on tourism. It has affected a lot of people, a lot of places and a lot of venues, says Rutherford. “We have noticed changes in booking trends. Funnily enough, people www.southafricamag.com 45
Nomad Africa Adventure Tours FeATure
are booking a bit later than they normally do. Our lead times are shorter. The exchange rate is also a factor - the rand is strong and that means that we are now competing not only with our traditional competition but with other destinations too. “Historically, Africa is associated with being cheap, which isn’t necessarily true. Certainly some things are cheap, but others are not. In terms of running a quality operation there are no shortcuts – quality costs money.” He says the recent successful hosting of the FIFA World Cup and further democratisation across Africa will pay dividends for tourism in the continent and is confident that the long-term future of the industry is sound. “In terms of our booking numbers we have seen in the last few months a swing up again and so I feel that the worst of the downturn has passed.
LUpANDI SAFArI Situated on the banks of the Luangwa river and home to both directors, patsy Hahn and Herman Miles, the Wildlife Camp offers a variety of options. rustic en-suite chalets, a secluded en-suite tented camp, a Bushcamp for overnight walking safaris and within walking distance from the main camp - a beautiful campsite. our qualified Zambian guides lead all our walking safaris and use a fleet of converted 130 land rovers, ensuring comfort and extra space for your game drive. The Wildlife Camp is situated on land owned by Wildlife and Environmental Conservation Society of Zambia. We operate under their auspices and revenue generated from the camp enables us to donate US$ 50 000-00 per annum to the society, which in return supports the wildlife and people of the Luangwa Valley and Zambia, the main focus being in the education of the Zambian Children in conservation.
Holidays should make you feel good…
We operate under the auspices of the Wildlife Environmental and Conservation Society of Zambia. By supporting the camp you enable us to donate US$50 000-00 per annum towards the education of Zambian children in conservation
Staying with us will!!
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After the Victoria Falls, Zimbabwe’s most popular and stunning travel destination BACK INTO THE WILD! Home to the world famous ALERT lion rehabilitation programme. Now a major UK TV documentary series – LION COUNTRY Where else in the world?..
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Nomad Africa Adventure Tours FeATure
Business is on the rebound.” Competition from other destinations will remain strong, he says. But he comes back to the fact that Africa is unique and has a lot to offer. “Classically cheap destinations like the Far East will always be tough competition. But they haven’t got certain things that Africa has got, although they have their own draw cards. It is dirt-cheap. That is an obstacle. But Africa offers this great sense of adventure for many travellers.” Although the typical Nomad customer may
have grown up, it is slightly more affluent and wants “sophisticated packages”, Rutherford stressed that the sense of adventure will never be lost. “That’s what makes this type of trip –the idea that everything is new, unknown and untouched. “Another thing to mention is that our tours are no longer considered just the domain of the adrenalin junkies. What we have learnt to do is to adapt. I like to say, ‘Most people like ham, so we’ll stick ham on the pizza, but not everyone like olives!’” To learn more visit www.nomadtours.co.za. END
Africa offers this great sense of adventure for many travellers
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SOSSUS ON FOOT
SCENIC DESERT TOUR & CAMPING Experience real desert life, dunes, desert farming, water and authentic Bushmen on a desert farm property. We also specialize in Sossusvlei and provide information for all visitors and group tours.
Express D e l i v e r y
Tim Steel, Country General Manger of TNT Express in Southern Africa, tells Jane Bordenaveabout the changes in trade within the region and the services his company seeks to meet them.
TNT Express FeATure
s one of the world’s leading express delivery services providers, TNT Express has been working in South Africa for 35 years and now employs over 400 people across six depots in the country. The South Africa office is also responsible for the rest of the Southern Africa region. The company has a broad client base throughout Southern Africa from SMEs, right through to larger multinationals. “The automotive sector is, of course, one of the most important in South Africa, as are manufacturing and Hi-tech,” says Tim Steel, country general manger of TNT Express in Southern Africa. “South Africa is largely an import economy, which is the case across much of the rest of our region, and we bring in materials or parts for these sectors,” he adds. “We also export samples and, less often, finished articles.” All of this means that having a good express service is vital. In the past the main trade routes were between South Africa and Europe. However, over the past four or five years, with the growth of the manufacturing sector in the Far East, this has changed and increasingly the most important links are with China and India. In fact these trade routes are not only the fastest growing but also among the largest trade lanes as well. In order to make the most in this, TNT Express has been expanding physically. “We have acquired businesses in India and in China, as well as another three in South America,” says Steel. Giving the example of work being done in China, he continues: “We now have over 1250 depots across the whole of the country, so we are able to offer our clients in Southern and South Africa uniquely high service levels out of the Far East. At point
we now have over 1250 depots across the whole of the country
TNT Express FeATure
of collection from a factory in China, we can then easily move the product by road to an air gateway using the infrastructure built by these companies before we acquired them. We then deliver to our clients by a combination of air and/or road. In short, we can literally offer our clients goods transportation services from the door of the factory in China or India, direct to the end consumer.” Tailored delivery is part of the full-service approach that TNT offers its clients. “Our Economy Express option is completely unique in South Africa and offers our customers a balance between price and speed, depending on their needs,” explains Steel. Whereas previously the 24-hour guaranteed delivery was the focus for the majority of clients, now businesses can choose a 36 or 48-hour delivery time, which will give them a 15 – 20 percent reduction in the cost of shipping. “What makes this product different as well is that these are still guaranteed delivery times – just because
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TNT Express FEATURE
there’s a reduction in price, doesn’t mean there’s a reduction in service quality.” The reasons for the increase in the popularity of Economy Express are twofold. Firstly, says Steel, the recession has had an impact. With people looking to reduce overheads and investigating more economical ways of doing business, accepting a slightly extended delivery time for a reduced price has become attractive. But it is also attracting new businesses looking for a good value, joined-up shipping service. “Before now, in Southern Africa there were many people who were using multiple logistics providers in order to try and get the best deal. They would use one smaller, local company to take the goods from the factory to the airport, a different air-freight company to take it from one country to the other, then yet another company to move it by road on the final leg of its journey,” Steel explains. “But doing
business in this way generates numerous invoices and airway bills and can cause delays at customs. By using our Economy Express service, these companies only have to deal with one express provider, one goods consignment, moving from door to door at a competitive price. We then send them all the customs documentation together in a single automated email too, in a way that would not be possible using three different suppliers.” TNT Express can offer help with customs, Steel says. “Customs legislation in South Africa has changed recently to bring it into line with international standards. While this is a good thing in many ways, it has also presented its own challenges in terms of compliance and general unfamiliarity on the part of the client. However we have been working closely with the South African Customs authority to ensure a smooth transition both for us and for our customers. We have invested in a new
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interface and we are also able to send all documentation, from the invoice generated at the factory when the cargo was first picked up, through airway bills and customs forms, to the authority even before the items have arrived in the country. This makes the whole process a lot easier for everyone.” While the company’s main clients operate in the worlds of industry and automotive, it also turns its extensive knowledge, experience and expertise in the field of express transportation to other specialised areas. “We also do work with clinical trials,” says Steel. “That requires a great deal of both care and specialist ability. We carry human tissue samples, cell cultures and related cargo between destinations at either ambient temperature or a specified temperature – whatever is needed by the
client, we can offer to them.” Looking to the future, Steel sees a great opportunity for organic growth. “There are currently still a large number of small and medium sized players in the market, and a number of local South African companies. If you look at how the export industry has developed in other emerging markets, you will see that the number of these small and medium enterprises reduces. This is because these organisations, particularly those that are family run, decide that now is the time to ‘cash out’ and sell their business to one of the big players, such as TNT Express. So as the market continues to grow here in Africa, we intend to grow with it organically and provide our expertise and quality of service to more corners of the market.” END
whatever is needed by the client, we can offer to them
Courierit is a highly experienced courier, renowned for its ability to adapt to customer requirements.
ÂŠ Andrejs Pidjass 56
here are many reasons to use a professional courier. Couriers are an important link in the global economy and without the services they offer, individuals or businesses cannot ensure that important documents reach the desired destinations at specified times. Courier companies offer the opportunity to make sure that time sensitive documents and important parcels reach their destinations on time as well as in the same condition in which they left. A courier offers peace of mind and will take your shipment, large or small, and ship it to wherever it needs to go, in the most efficient, safest, and most budget conscious manner. They provide an extensive range of services, and you can, as standard, utilise GPS tracking to keep tabs on your delivery, which is optional for most everyday mail services. This, of course, means you pay a premium - couriers are usually more expensive than typical mail services but you get what you pay for. There is more to this than you initially thought, hey?
we pride ourselves on offering a personalised courier service to anyone and everyone who wants a package delivered quickly and safely
leAdING PlAyer Now we have established the vital role the courier plays, which one should you choose? It is a tough question. There are many different services out there, from those offered by the international, wellknown brands, all the way down to smaller, local players. Courierit is a local whiz in express airfreight distribution. It specialises in express/courier document and parcel services nationally through branches in all major centres in South Africa. â€œWe have been established for a decade now and have built up rapidly based on a fantastic www.southafricamag.com 57
CourIerIT at a glance Courierit offers a professional service ensuring prompt response to calls for collections, prompt delivery of shipments and prompt reaction to queries. It offers an extensive range of services. It is ﬂexible in its ability to adapt to customer’s requirements, be it collection or delivery times/ places or billing procedures. The company is technologically advanced and offers a fully integrated and secure online system for transmitting text and data in a secure environment. It monitors the status of any consignment at every stage, from despatch to its ultimate delivery. This PC-based system has been centrally developed to allow unlimited expansion in all areas and fields, to ensure their customers constantly receive information in the most modern methods. It is tailor made and ﬂexible and easily adapted to suit all customer requirements. Domestically it offers In-House Ops, which includes full inhouse operations, and live track and trace facilities on a door-todoor basis. It offers competitive rates.
service provided with a personal touch,” Marnie Dreyer, General Manager at Courierit told a South Africa Magazine researcher recently. The firm is renowned for providing a “first class service” to each and every customer and manages deliveries to over 2000 destinations and towns across the country. “We pride ourselves on offering a personalised courier service to anyone and everyone who wants a package delivered quickly and safely,” the company says on its website, www.courierit.co.za. “Courierit successfully merges the physical and virtual aspects of logistics in order to provide its customers with a superior seamless solution to the problems associated with the industry,” it continues. Interestingly, its website adds, “The management and staff are highly experienced self-motivated individuals with a successful proven track record for service excellence in the airfreight industry… Courierit has a unique training programme whereby historically disadvantaged individuals are trained to become successful entrepreneurs within our industry.”
eXTeNSIVe oFFerING The Courierit Group specialises in international freight, warehousing and re-mail. In 2005, in response to demand from the local market, Freightit was formed and it has added a very strong string to the Courierit bow in that it is able to offer customers an import or export component. Freightit has been extremely successful with various international contracts through its ethos of “personalised relationships and hand to hand logistics solutions”, the company says. “Through a partnership with Warehouseit we are
able to offer a warehousing facility with pick/pack abilities, enabling our clients to order and despatch cargo without even lifting a finger,” its website adds. “Opened in 2009, Remailit offers mailing solutions for a vast range of clientele who ship bulk international mail.” Courierit’s success is based on its ability to identify and understand its clients’ needs, fulfil and maintain service levels, and continuously adapt and develop systems to fulfil all requirements, “We have specific areas of strength,” the company says. “We work to high standards to ensure customers get a high quality service. “The strength of our company lies in our staff,” the company website adds. “We believe in the same, and spend one percent of our annual budget on training. We reward our staff, and in so doing, meet the ongoing needs of our customers.” Courierit’s goal is to make a difference in South Africa, and Africa as a whole,
Regional Distribution Services
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“by optimising people effectiveness and ensuring behavioural competence”. Its policy is to enrich society, to assist previously disadvantaged groups and disabled individuals through collaborative support and development programmes. “Courierit (Pty) Ltd is committed to nation building and playing its part in the upliftment of its Employees and South Africa’s citizens,” the company website says. Courierit SA (Pty) Ltd is fully committed to implementing Broad Base Black Economic Empowerment (BBBEE). It completed a BEE audit in February 2009, achieving a level 6 on the Empowerdex audit. “Courierit has established a share incentive trust, which has a 10 percent shareholding in the company; this is Courierit’s Black ownership vehicle,” the company website says. “The 10 percent shareholding was donated by the company to its staff as token of its appreciation to its employees, for their continuous commitment, loyalty and motivation.” END www.southafricamag.com 59
F IR S T C L A S S
Metro EMS is so much more than an ambulance service for the Western Cape â€“ it has evolved into a world class life saving organisation bringing patients into contact with front line medical specialists. By John Oâ€™Hanlon.
Metro EMS FeATure
r Cleeve Robertson has been heading the Western Cape’s first response service since it was constituted in its present form in 2001. Its evolution under his leadership has been remarkable, though he is quick to acknowledge that its inspiration and shape can be credited to Dr Alan McMahon, who was instrumental in bringing the 20 rural, local authority based ambulance services together with Cape Town in 1973 to form a unified service. “Alan started the Metro EMS system we know today including the rescue organisation, the communication system and in doing so revitalised the entire EMS system throughout Cape Province.” Under the new dispensation in 1994 the Western Cape became a smaller province, and control was finally taken from the local authorities’ hands in 2000. “Placing EMS under the province made it easier to manage in terms of personnel, finance and admin,” says Robertson, and he adds that by direct financial responsibility removed the inevitable competition for resources between the local authorities. EMS was ready to up move to world class, and it showed: “Today the ambulances all look the same, everyone wears the same uniform, you get the same equipment and there is equity between urban and rural services.” For operational purposes the ambulance service is organised in two divisions, the acute service which deals with emergency calls and Healthnet (Health non-emergency transport) – between them they operate a fleet of over 400 vehicles and respond to 40,000 calls a month. For flexibility a proportion of the vehicles are hybrids that can
we always buy the largest capacity tools and maintain them so they will last for decades ... you can’t have a failing product in an emergency
Metro EMS FEATURE
take wheelchair and seated passengers as well as stretcher cases, says Robertson. “We also provide dedicated services – for example for patients needing regular dialysis – they have tight slots on the machines and we have to make sure they are there at the right time.” This can be a challenge since they might live well outside the city. Response times are all important. The current CAD (computer aided despatch) system both controls and monitors performance and has made a huge differenced in performance. “Within Cape Town it now takes about 90 seconds to get all the details from the call, then three or four minutes to get that information ambulance despatch.” The average response time in the urban areas is about 15 minutes and this is some achievement in a city with endemic traffic 62
congestion. “At the start of 2010, 23 percent of calls were attended in less than 15 minutes: now we at around 62 percent in Cape Town, and much higher in other urban areas in the province.” So CAD has done a good job, but five years of working with it has revealed gaps and it is due for replacement by a more comprehensive system. “The new system will include electronic patient records and a lot more data. We have reasonable despatch and performance data that shows how well we are responding but we do not have very specific data around the conditions of the patients we are treating and conveying.” Metro EMS staff are a very talented bunch these days. The job requires much more than drivers with some first aid training. They have to understand hazardous materials, have the engineering ability to free patients trapped
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Metro EMS FeATure
in machinery or crashed cars, and since they might have to attend accidents in mountainous or wilderness areas they need training in surviving hostile conditions. Rescue vehicles are equipped with very sophisticated tools, many of them supplied by specialist Dutch manufacturer Holmatro: “We always buy the largest capacity tools and maintain them so they will last for decades, and start every time. You can’t have a failing product in an emergency,” says Robertson. Medical skills come first though. Most deaths occur at the scene of accidents, and stabilising patients is just as important as getting them to hospital quickly. The original training centre set up in the 1970s by Alan McMahon moved several times before taking over a building at the former Otto du Plessis Nursing College at Tygerberg Hospital. It now offers a full range of emergency care courses: these were provincial qualifications until 1992 when they became registrable with the Medical and Dental Council, now the Health Professions Council. The emergency service has become increasingly demanding and Robertson anticipates further rationalisation in training: “There is a move to introduce degree level qualifications as the status and knowledge base of the profession grows, and we can expect tertiary level qualifications to become the norm.” One of the courses available is the Flight Medical Diploma. “Two things have revolutionised rescue in this country, cellphones and helicopters, especially in mountainous areas,” he says. EMS operates three aircraft, two Augusta 119-KE helicopters converted for medical response and a Pilatus PC-12 light aircraft that is used for more
mundane work like patient transfer from rural hospitals to Cape Town hospitals. One helicopter is based in Cape Town, the other at Oudtshoorn where it is not affected by the frequent coastal fogs. The latter covers the Central Karoo as well as the Western Cape and will fly urgent cases direct from local clinics to George Hospital in Cape Town. The wilderness search and rescue is assisted by volunteer cells throughout the province. If someone breaks a leg in the Cederberg a professional group of my staff would respond, augmented by volunteers with 4x4s and survival skills, adds Robertson. “That system has become very dependent on helicopters.” The achievements of the last decade mean that the citizens of the Western Cape have an emergency service that stands comparison with the world’s best. It is a pity then that they can’t access it with a simple number like 999 in the UK or 911 in America. Cleeve Robertson has been on a decade-long mission to get 112 registered as an official national emergency number for mobiles and landlines. At present Vodacom, Cell-C and MTN each has a separate call centre that routes through emergency calls to the hospital service in the area where the call comes from, but these need to be amalgamated he says, and the technology exists to save many more lives. “There are 250 informal settlements in Cape Town alone so if you are calling from there you can be difficult to find. But GPS can now pinpoint the caller for the ambulance. We just need the number and the back office system to make it possible.” END
Two things have revolutionised rescue in this country, cellphones and helicopters, especially in mountainous areas
Thanks to the combination of the single as a world leader in helicopter design and powerful pratt & Whitney 1,002 shp manufacturing committed to providing the turbine engine with new, state-ofmarketplace with a modern, comprehensive commercial product line, agustaWestland responds the-art design main rotor blades, to worldwide current customer demand for a high the AW119Ke provides excellent performance, modern, multi-role single-engine performance capabilities with an helicopter with the aW119Ke - Koala enhanced. operational envelope extended also to demanding hot and high With its Maximum Take-OďŹ€ Weight increased conditions at high gross weights. to 2,850 Kg./6,283 lb, the aW119Ke oďŹ€ers its customer unmatched performance with a The AW119Ke is faster than its resulting payload/range capability that makes competitors and offers the largest it an unrivalled helicopter in its category. cabin and luggage capability of any helicopter with the lowest cost per seatmile in its class. It can accommodate up to 7 passengers with high interior operational capability. Dual hydraulic and helipilot systems ensure high safety levels. All the upgrades can be retrofitted to the previous AW119 Koala.
role CAPAbIlITy The AW119Ke provides offshore operators incredible payload/range characteristics. The Law Enforcement and Homeland Security variant offers extended patrolling time in addition to the cabin flexibility already appreciated by various police departments. The VIp/corporate configuration offers greater payload, separate interior and high cruise speed. The outstanding payload/range and speed capability are also beneficial to the EMS operators community, which has given widespread appreciation to the large cabin, fully separated from the cockpit. The increased operating envelope, together with the significant sling load capability of the AW119Ke are beneficial to the utility roles, including fire fighting activity.
CuSToMerS The AW119Ke has achieved a rapidly growing success in the world market with orders by a number of customers for various applications including VIp/corporate transport, offshore transport, EMS, fire fighting, law For more information enforcement, utility. Among customers are Spanish please contact: fire fighting operator FAASA, the Finnish Border Tel: +39 0331 229935 Guard and the red Cross AMS and Metro EMS Fax: +39 0331 229287 of South Africa. Around 190 AW119 helicopters www.agustawestland.com have been ordered to date in approximately 30 countries by over 90 customers. www.southafricamag.com 65
forests A STIrrING IN THE
Decreasing forest areas are pushing productive capacity to the limits and frustrating the timber and wood industries growth ambitions. roy Southey of the Wood Foundation tells colin chinery about the danger of lost opportunities and the socio-economic implications for South Africa.
Forestry SA FeATure
hecked by conservation strategies and competing land uses, South Africa’s commercial forests now account for a mere one percent of total land area; down from a peak of over 1.5mha in the late 1990s to 1.28mha. And with the country nearing the limit of productive capacity, the timber trade is sounding a warning. “We want to expand,” says Roy Southey, chairman of industry body Forestry SA’s marketing arm launched last year, the Wood Foundation. “Wood is an eco-friendly renewable resource with outstanding Green credentials, should be seen as such and used in greater quantities or in more and better applications than is currently the case “The entire sector is dependent on the capacity of South Africa to establish and grew forests, but only one percent of our land mass is ideally suitable for forest development. What we are lobbying for, and trying to convince Government and the decision makers over is the urgency of utilising this capacity to its fullest. At the moment we are not quite there.” The forestry industry is a substantial foreign exchange earner for South Africa, employs around 130,000 people, mostly in rural areas, and is a significant contributor to the socio-economic scene. And Southey says the potential for growth is “quite substantial.” “The Government has announced its intention to allow the forestry industry to expand quite significantly in the Eastern Cape and KZN. But like almost all things with governments anywhere in the world; it’s a slow process. The political will is there, but to get it moving along officialdom has to get its house in order and its act together.” Trees and the Green interest might seem a flawless symbiotic relationship, but commercial forests have been criticised by environmentalists for their high volumes of water extraction. The charge was justified in the past, but no longer, says Southey. Forestry and water retention are now allies. www.southafricamag.com 67
Forestry SA FEATURE
“Years ago the amount of water used by the forest industry was pretty well unknown. Trees trended to be planted like a green carpet in and out of the valleys and across the wetlands. And while it was understood that forests consumed a lot of water, exactly how much, and the effect it had on stream-flow were less certain.” Alerted to the issues, the Government through the Department of Water Affairs and Forestry began a series of projects. Trees were planted in water catchment areas and stream-flow reductions were measured. One result was 1998 National Water Act setting out new provisions for the licensing of stream flow reduction activities - in effect targeting only commercial forestry. “We now have a far more informed view of where we should and should not plant forests,” says Southey.
The South African forestry industry has refined its practices and plants correctly, with the result that forests no longer pose an environmental threat. “Modern day foresters are controlled by regulations and their own conscience. “To expand the forests you have to take into account a number of considerations, of which water is an obvious one. South Africa is a predominantly dry or semi-arid country and water production is all-important. So you can’t establish forests where they might come into conflict with water production, and we have to be continually researching water usage and dovetailing it with water production for human consumption.” Other environmental issues include natural habitat for fauna and flora. “We don’t want to establish forests in sensitive areas. All these points need to be balanced up, and the Wood Foundation is saying,
‘Let’s have a balanced approach to the whole forestation question; let’s involve the environmentalists, the foresters, the water interests and the Government, so that we can find a solution where everybody can share in the resources and forestry can expand to its ultimate potential without infringing on anyone else’s rights.’” The strategy is working, with over 75 percent of South Africa’s forests now managed to standards set by global industry watchdog the Forest Stewardship Council. And in its report ‘Forestry 2030 Roadmap’ the Department of Agriculture, Forestry & Fisheries notes that a well-managed forestry operation has positive effects on water quality, surface run-off, evaporation and topsoil. One regulatory response causing unease within the industry is the water tax, but from Southey, a measured response. “The water tax affects all agricultural products and as with all taxation, it’s a contentious subject. Foresters are concerned that because of perceptions that forestry is a water-thirsty activity it will be unfairly disadvantaged in comparison with say the cane or maize industries. “We don’t oppose the idea of a water tax and we understand what it is trying to achieve. We just want to ensure we get our fair consideration.” But for South Africa’s timber sector the problem of imminent production capacity is part-masked by another - lower demand, in particular from the construction industry. In a head-on response the Wood Foundation is lobbying the government to modify its housing construction policy through the selective use of wood rather than bricks and mortar. This would give a shot in the arm for the timber trade, support rural economies and job creation, and steer the country towards Green building practices and the implementation of energy efficiency legislation. At present South Africa’s carbon footprint is the highest on the continent, with per capita emissions of 10 tons per person.
When we say Experience, it is not so much a statement of our history as it is evidence of the skill that is already empowering a great future. We are proud of the pioneering and leadership roles we have fulfilled in forestry and wood processing for over 50 years. This experience has enabled us to contribute real innovation to our industry - innovation that has become a world standard. THIS IS THE WORLD OF MERENSKY, ARE YOU READY TO JOIN US? www.merensky.co.za
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Forestry SA FEATURE
“Our core objective is to promote the vital role wood plays in influencing our lives through sustainable forestation and building practices,” says Southey. “Wood is biodegradable, serves as a great insulator, uses less energy to process than steel, concrete, aluminium or plastic, and is 100 percent renewable. It is easy to maintain and has excellent insulation and acoustic characteristics while also being flexible to work with and aesthetically pleasing.” In Australia, New Zealand, the United States, and parts of Europe, timber framed construction is widely accepted and used extensively. But here in South Africa Southey notes there is - not least among architects and specifiers – “a basic lack of common knowledge. Our homes are built traditionally of brick and mortar, and timber is not regarded in this light. So we are trying to change the perception and lobbying Government to include in their housing projects the option of timber frame construction.” And the campaigning is seeing some success. ”Even two years ago most local authorities wouldn’t even consider timber framed construction as an acknowledged building method. Today most authorities and municipalities do accept it, and is being widely used in the Cape Province, KZN and various other parts of the country. The Government has said it is very open to finding out more about the issue and considering it if it holds benefit. So it’s gaining ground quite significantly, especially in the second home, upper and coastal markets, although at this stage it is not seen as an answer to the mass housing need.” Meantime the looming inability to fully meet domestic needs could scarcely come at a worse time, with research firm International Wood Markets predicting surging Chinese demand could more than double timber prices over the next four years. Southey takes a more relaxed view. 70
“We are already an importer of exotic hardwoods and so on for the furniture industry. But at some point we will need to become an importer of structural lumber and timber products. And this will come pretty soon after the world returns to economic normality. However I think this excess will be absorbed quite comfortably within the economy and we shall continue to produce the majority of demand ourselves.” But on the fundamental supply-side challenges facing the timber and wood sector, Southey’s call to Government and public is unequivocal. “Timber is an entirely renewable and environmentally-friendly resource that needs to be seriously considered, with the decision makers allowing the industry to expand to its full potential while taking into consideration all interested parties. “And there is a further need - for forestry and the wood sector to be seen in South Africa as the important strategic component it is and with the status it deserves.” END
experience, YOUR advantage their
ÂŠ Tomas Hajek
Nukorâ€™s Sales and Marketing Manager Cobus Richter tells Colin Chinery more about Nukor, well known in the Southern African Sawmilling, remanufacturing timber industries.
hough small as a percentage of national land mass, South Africa’s forest area is one of the most productive fast-growing timber plantation areas in the world. And within SA’s commodity sector the timber industry - as well as being a significant player on the global scene - is third only to mining and agriculture in scale of turnover and employment. South Africa is also the largest industrial roundwood producer in Africa - roundwood is wood material finished to a round or halfround shape. One reason is world leadership in genetics and tree improvement research, the latter producing increased yields upwards of 25 percent. Another is the presence of companies like the Nukor Group of Johannesburg and Nelspruit, established for over 50 years, technology supplier to the timber industry and a byword in the Southern African sawmilling and remanufacturing timber industries. Commercial plantation forestry in South Africa encompasses large planted forests established to supply key raw materials for the mining, construction and industrial markets, as well as pulp mills, sawmills and factories processing the raw materials. Nukor’s expertise and technology is focussed in the value-added chain; areas such as sawing, cutting, kiln-drying, planing, laminating, as well as preparing woods for specific end usages like construction and furniture manufacturing. “We are the biggest company in our specific sector in Southern Africa, and our clients range from small enterprises to major international corporations,” says Nukor’s 34 year old sales
and marketing manager Cobus Richter. Now Nukor is extending its focus to incorporate bio energy. “For the forestry sector downstream by-products can be used to generate electricity. There have been political challenges but most of the uncertainty could be clarified later this year. And this would mean a lot of people will be investing in these range of facilities,” says Richter. The Nukor Group is made up of five companies of which three are trading concerns - Nukor Sawmilling (Pty) Ltd, Nukor Woodtech (Pty) Ltd and Nukor Forestry (Pty) Ltd. Nukor House (Pty) Ltd is a property holding company while Nukor Holdings (Pty) Ltd is the holding company and responsible for Group administration. The Group is responsible for numerous large projects, often supplied on a turn-key basis, delivering a complete, tailor-made individualspecific Greenfield programme and solution. Nukor engineers train new operators during the erection and commissioning of a plant, with follow-up training periods of four weeks, six months and one year after commissioning. Individual machines are supplied – some made locally but mostly imported from Europe – along with conveyors, kilns and complete remanufacturing, backed by installation, maintenance, training, spares –over R8m worth in stock - and repairs. Single sawmill machinery sold and serviced include frame and chain saws, band and circular saws, portable sawmills and machines, brush cutters and sprayers. Nukor is also engaged in kiln drying, timber upgrading plants, conveying and transport systems, finger jointing, planing, moulding, laminating, ripping and profiling and shelving plants.
we are the leading technology supplier in Southern Africa for the timber industry
Major factors behind the Nukor success include: An infrastructure servicing and maintaining existing sawmills as well as on-going commercial and technical support for new projects large and small. â€œNukor is well aware of African conditions as far as management, timber and maintenance is concerned, a familiarity resulting from fifty years experience in the Southern African market. All our design work for the sawmilling industry is based on local conditions,â€? says Richter. The development of local facilities for the design and manufacture of sawmill equipment. Many items including complete log sorting plants have been standardised, tried and tested over many years. As a result design faults are eliminated. Management and key personnel have together some 20 to 40 years experience within the sawmilling and remanufacturing supply industry. They are constantly keeping abreast of global techniques and 76
procedures through continuous visits to manufacturers and installations. The Group is strongly service orientated. Nukorâ€™s half-century progress is impressive. By 1968 it was exporting sawmilling equipment to neighbouring countries including Malawi and Zimbabwe, as well as marketing progressive kilns designed, manufactured and erected by Nukor. Eight years later it won its first order for a turnkey sawmill project, resulting in Nukor expanding its technical department for the design and fabrication of conveying equipment within South Africa. By 1980 it had established an engineering works. And as the sawmilling industry became more labour conscious and further mechanisation was required on existing mills, the technical department was further increased, with new equipment designed and patented for curve sawing and log sorting. In 1988 a branch was established in Nelspruit to service the Eastern and Northern areas of the country.
Latest technology MühLböck progressive kiln NUkOR GROUP Tel: 011 610 2000 Fax: 011 610 2020 E-mail: firstname.lastname@example.org www.muehlboeck.com
© Einar Bog
“Nukor has always been and will remain “The water tax is having a significant 1 21.02.11 service oriented with its own factory trainedSüdafrika_82,5x117,5.indd impact. In the future this could become service engineers and strong technical quite an expensive exercise for a landowner. department,” says Cobus Richter. There are And overall it would make the timber currently nine Cad work stations on the design industry less competitive locally versus side, all continuously up-graded. Depending internationally. Some people are calling it yet on work volumes, Nukor and its subsidiaries another added burden.” employ between forty and seventy mainly Other challenges says Richter are the technical-orientated personnel, and most staff Governments new land reform policy – “a point members have been with the company for of concern for investment into the future” - and between fifteen and forty years. exchange rates, with a strong Rand putting the With skills availability and training industry under pressure from imports. universal challenges in South Africa, Nukor Despite this Nukor is well positioned focuses on in-house training and promotion for further expansion. “We are the leading along with placements on subsidised technology supplier in Southern Africa for external courses. Nukor also collaborates the timber industry that has relation to with and supports the wood technology the primary and secondary processing of department of a local training college in the roundwood,” says Cobus Richter. “We spend faculty of forestry. a lot of time with our customers, getting to With forest plantations now categorized know them and not just in a professional by the Government as stream flow reduction manner. We see ourselves as a partner in their activities, the ensuing water tax and its businesses, not limited to selling equipment implications for sustainable forestry are and then moving away, but adding benefit to concerning the timber sector. our customers.” END www.southafricamag.com 77
ApoLLo LAyS ouT
BuIlDInG BrIcKs OF recOVerY
Mellow and reassuringly traditional, clay bricks are also cost-effective, energy efficient, and an exceptional moderator of temperatures within homes and commercial buildings, as Jan vorster, ceo of Apollo Brick explains. 78
Apollo Brick FEATURE
outh Africa infrastructure spend in preparation for the 2010 Soccer World Cup was a colossal R357 billion. It was a state engineered bonanza like no other in our history; R62.5 billion on highways, R16 billion invested in airports, R13.7 billion on rail systems - including the high-speed link between Johannesburg and Pretoria - and a little over this on sports stadiums. But even before the closing ceremony, the construction sector had gone cold turkey. And in the inevitable contraction, along with the housing and retail build slump impact of global recession, 54,000 jobs were lost in the second quarter of last year. In the sub-sector categories demand for face brick and clay brick reduced significantly. “We took a serious knock in the recession,” says Jan Vorster, CEO of Apollo Brick. “We had to close two factories and dropped our production substantially, with - sadly - an accompanying cost cutting and retrenchment of people. The encouraging side of this story is how we managed this downturn with the help of all management levels and staff to assist and make plans to ride out the rough times and stayed cash positive, where it not for their contribution and cooperation we would have been worse off.” The construction of low cost housing remains a significant feature of the building and construction industry. And with Government commitment to spending up to R350 billion on housing by 2020, and home ownership an essential component of wealth creation, building and property is potentially a powerful engine for growth and prosperity. Even so, Vorster is cautious. “Over the next 12-18 months I think there will be a gradual pick up, but selling prices will continue to be under pressure. Overall it’s not going to be a dramatic recovery.” Apollo Brick can manufacture 200 million NFP & NFX bricks a year at its plants at Olifantsfontein / Bapsfontein in Gauteng and Atlantis near Cape Town, using the traditional www.southafricamag.com 79
Apollo Brick FeATure
process of mining, clay beneficiation, extrusion, open air drying and clamp burning. A principle based clay brick manufacturer operating in a mining environment and BEE accredited, it sells to major, medium and small contractors in the construction industry, as well as to building material merchants and private individuals. “Anybody can pick up a phone or go to our website and order bricks directly from us.” Clay brick making is specialised and labour-intensive, 70 percent semi-skilled. “This is not an industry where you can pull people from the street so training is on going. Communications are very important, and I think we are a hands-on company, with little formality, good systems and a fairly flat structure.” The permanent and current most popular building material in South Africa is clay bricks, cement bricks, with fabricated steel insulation panels, concrete panels and Polystyrene plastered with an external weather-resistant product is among alternative solutions under examination - driven by the perceived high cost of building. But the majority of highprofile buildings here are constructed of clay brick, durable, easy to work with and highly sought-after for its structural, thermal and acoustic insulation properties. Clay bricks are one of the most cost effective ways to include thermal mass in buildings, absorbing and storing heat throughout the day, and then slowly releasing it at night. This ensures the moderation of internal temperatures, leading to lower energy consumption and a reduction in heating and cooling costs during the lifespan of the building. And the importance of thermal mass naturally inherent in clay bricks is critical here in the South African climate where well defined average 24-hour temperature swings characterise the six major climatic zones. “Investigative work is being done at the moment looking at sustaining the ambient temperature of houses constructed out of clay 80
roBoTIC HANDLING SYSTEMS Apollo Brick (pty) Ltd awarded robotic Handling Systems with a contract to developa system palletising their extruded bricks onto rectangular wooden pallets. The systemhas, to date, set approximately 30 million bricks onto pallets. Some of the advantages of robotic setting include: reduced drying cycles of the extruded brick; reduction in reject product and a saving in forklift fuel consumption as the pallets are packed at a consistent rate as opposed to hand setting. robotic is currently designing a system for Apollo Brick to palletise 30,000 bricks per hour, using three ABB IrB7600, 400kg - 6 axis robots. robotic became a Value Added partner for ABB in September 2010 and has to date, ordered eight 400kg - 6 axis robots from ABB.
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Apollo Brick FeATure
bricks, temperatures that make it comfortable for the occupants,” says Vorster. “If you look at the life span of a building, including energy usage, comfort for the occupants and aesthetics clay bricks gives a big advantage.” Apollo’s trademark and brand signature is quality. “We manufacture a quality brick. The whole process from the mining right through to manufacturing and drying and final product is closely monitored.” It is a process susceptible to weather conditions and variations in the quality of the clay material mined. Critical factors influencing operation and profitability are weather conditions, drying times, wastage, cost management and sales. At the Gauteng factory Apollo has invested in a laboratory where the normal production quality parameters are monitored and verified. Every month the various clays are tested and on a quarterly basis the products are tested to ensure compliance with the relevant set standards and with the SANS 227 requirements. Economic downturn has forced clay brick manufacturers to examine their operational efficiencies. In some cases, there have been mergers and internal restructuring, while others have shifted their focus to developing products for the low-cost housing market. The biggest focus in the construction industry over next few years says Vorster will be to reduce the energy requirements to run a building. “This will affect us as producers to assist in this drive with our products for example to produce perforated products as opposed to solid products,” he says. “And the exciting part is to see what is happening with materials and modifications, and create buildings where you reduce energy requirements. This is the direction we are moving in.”
Even so the traditional or habitual characteristics of demand are ever powerful. “But you have to produce what your clients want,” says Vorster. “So using a variation of clay products is starting to take off, and with demand increasing we are adjusting production accordingly, with the result that we can reduce costs and pass a price benefit to the customer. Customer relations are very important, and when you go through a recession it becomes even more important than you had thought.” Automation is becoming a significant operational factor, although Vorster tries to balance this with staff interests and the employment needs of the community. Apollo is BEE Level 4, with 15 percent of the company owned by a workers trust, and programmes assisting local community projects with finance and management help are integral to its broader operation. “You need to run the plant 24 hours a day, and so automation is cost-effective. But
Anybody can pick up a phone or go to our website and order bricks directly from us
it’s also linked to the increased labour inflexibility we experience.. Managing your way through a recession with inflexibility is close to impossible.” Apollo used sub-contractors to transport bricks from its factories to the building sites and depots, and Vorster says traffic congestion, particularly around Johannesburg, is a headache. “We need to improve our transport efficiency and cut costs.” A problem largely out of his hands? “No, very few problems are out of your hands. I think there’s quite a lot we can do with regard to transportation and the delivery of bricks, by using technology and closer liaison with our clients. “And there are real opportunities for utilising the off-peak times on the highways. This would certainly reduce costs and improve the efficiency of the trucks, increasing truck utilisation from say 11-12 hours to 14-16 hours. At the moment many deliveries are linked to normal daylight hours. So yes there’s a lot you can do.” END
DeBATe: Are BuineSS eThicS More iMporTAnT ThAn
profit? Joshua ngoma the charismatic ceo of Tranter Holdings, a company that seeks to invest in or acquire businesses where it can make a meaningful impact and contribution, talks to South Africa Magazine and explains there is more to business than profit. By ian Armitage
Tranter Holdings FeATure
he dark horse of South Africa’s diverse mining industry is blackowned, black-managed Tranter Holdings, on which there are top black mining personalities: Sipho Nkosi, Humphrey Mathe, Mxolisi Mgojo and Joshua Ngoma, former Eyesizwe and Exxaro executives. Their goal is simple; bring prosperity to Southern Africa’s economy. “We founded the business in 2002 and operationalised in 2007,” explains Ngoma, Tranter’s CEO, an inspirational character. Ngoma, who took time out of his busy schedule to talk with South Africa Magazine, has worked all of his life in the mining industry, initially with ZCCM in Zambia then Cementation Mining and several other businesses including De Beers, Anglo Platinum and Sasol Mining. “Our objective is to focus on the mining and energy industries in Africa and acquire businesses in those fields,” continues Ngoma. “We are also looking to give opportunity to those that would not otherwise have had the ability to actively and directly participate in the economic activities of our region. “Basically, we seek to create, invest in or acquire businesses where we can make what we call a meaningful impact.” The Tranter group is divided into mineral resources on one hand and mining services on the other. In mineral resources the company typically acquires early stage prospecting or exploration interests and brings them up the value curve. Tranter Exploration (“TEX”), one of the group’s many subsidiaries, is actively involved in securing prospecting rights in South Africa, Zambia and the SADC region in general. In 2008, Tranter Holdings, through TEX helped form a Zambian local Company that it
partnered with to form Tranter Resources Zambia, which has two big tenements of manganese and copper/cobalt. The company is currently in the advanced stage of exploration drilling for manganese, and in the initial stages of exploration for copper/cobalt. “We want a balanced portfolio of investments in the mining industry,” says Ngoma. Apart from TEX, Tranter has two other subsidiaries that involved in pure investments. Tranter Kismet, formed with a group comprising predominantly professional women, owns shares in Wits Gold, which is primary listed on the JSE and secondary listed on the Toronto Stock Exchange (“TSX”). Through Tranter Gold, comprising Tranter Holdings and five other broad based economic empowerment groups, Tranter owns shares in Great Basin Gold, a Canadian company that is primary listed on the TSX and secondary listed on the JSE and American Stock Exchange (“AMEX”). “On the services side,” Ngoma says, “we have Tranter Energy and Mining Services (“TEMS”), a mining and energy focused company, which recently, and significantly, acquired Boart Longyear’s South African Rock Drill manufacturing operations, a move that signalled our intentions to expand strategically. That business, now called Tranter Rock Drills (“TRD”). “The deal included Boart Longyear’s percussive rock drills and hard rock tools product lines for sub-Saharan Africa and the rest of the world, and all its manufacturing operations in Roodepoort,” he continues. “What was important in this transaction, and in line with Tranter’s philosophy of empowering people, is that 25 percent of the business is owned by all the TRD’s employees, without exception. After the acquisition of
we want to help local professionals to empower themselves
Tranter Holdings FEATURE
the business Tranter management put in place an intensive programme to develop all the TRD employees to higher levels of responsibility and today TRD is fully, effectively and efficiently managed and partly owned by its employees. TEMS is now one of the major suppliers of pneumatic rock drills and hard rock tools in Sub-Saharan Africa, the Americas, and parts of Europe.” Ngoma adds: “We are looking to grow the Tranter Exploration and Tranter Energy and Mining businesses simultaneously.” With respect to mining exploration, Tranter has to date spent more than $2 million exploring manganese, copper and other minerals in Luapula in north eastern Zambia. “Tranter Resources Zambia is the first indigenous company that has gone into large scale exploration in Zambia with the aim of becoming the first mining company to develop large scale mining in the province after the
completion of the initial exploration programme and feasibility studies,” Ngoma says. “Tranter Resources Zambia is led by its own CEO, Dr. Sixtus Mulenga, who also heads the local shareholder partner,” he adds. “Here we have used our experience in South Africa to help empower local professionals within the mining sector.” He says that Zambia has done a lot to encourage local investors to work side by side with foreign investors as a way of empowering local businesses. “We want to help local professionals to empower themselves,” Ngoma explains. “That is the Tranter Holdings remit.” Tranter has been exploring for various base metals such as copper, tin, zinc, aluminium and others in Luapula province, he says. “Zambia is a promising market, as is Botswana, which is also investor friendly. In those countries we aim to help local people Rockdrills Ready For Dispatch
that lack the capacity to venture into large scale mining. “We have, of course, four subsidiaries and the Zambian venture is a part of what we do, but our main focus at the moment, I have to stress, is Tranter Exploration and Tranter Energy and Mining Services. We intend to grow both of these divisions. “In terms of the growth, I think that things are slowly picking up in the industry,” Ngoma adds. “We have seen the rock drills product orders increase and also, generally, if we look at [what is happening in] the market in terms of commodities, you can see that the prices are going in the right direction, which will encourage more production. If we look at the economy too, we are seeing growth from quarter to quarter, which shows we are moving out of recession and going towards growth. So that should be good for the mining industry, I think.” Africa is being democratified and good governance and good governments have been installed. The continent is now beginning to
boom, and this represents opportunity for the likes of Ngoma and Tranter Holdings. “There is increased democratisation in Ghana and West Africa and it does represent a business opportunity,” he admits. “We have seen good opportunities in West Africa. The democracy and stability in those regions is good for us and we can now go with confidence into those areas.” Much of what Tranter intends to do is in the planning stage, he explains. “One of the things you have to be careful not to do is move at a speed you cannot control. You have to develop sustainably. “We are proud of what we have been doing in Zambia and with how the Tranter Rock Drills business is progressing. “We want to expand the services business by bringing in other divisions like environmental management and geological services,” Ngoma concludes. “But that will come in due time: we have planned for that and we think it is going in the right direction. “ To learn more about Tranter visit www. tranterholdings.com. END www.southafricamag.com 87
Joburg-based Wits Gold is confident that it has a new gold mine after drawing resources at its shallow De BronMerriespruit South project in the Free State. By colin chinery
Wits Gold FeATure
Results of a scoping study are due in April alifornia bags the best gold and a bankable feasibility study should be rush songs but South Africa has completed in the third quarter of next year. “I produced the most gold - a third ever mined, all but a fraction from really think we’ve got a new mine here,” says the Witwatersrand Basin reaching from east of Wits Gold CEO Marc Watchorn. The average gold production in the Johannesburg down through the Free State. Witwatersrand basin occurs beyond 2km, But it doesn’t come easily. South Africa while this deposit is relatively shallow, starting mines at the world’s furthest depths, and the at 500m below surface and going down to deeper you go the richer the ore uncovered. about 1.25km. And for the first time, Wits has And while the Wits Basin still has enormous reserves, development has been hampered by declared a uranium resource at the project, the costs of accessing the ore bodies generally where it has an indicated 6.1-million pounds of U3O8. located at depths greater than 3km. Indications are that all the higher Even so, with few new gold strikes around grades of gold are close to the 500m sub the world that can be turned into profitable crop, and good grades at mines, South Africa’s gold shallow depths is music miners are planning to dig to investor’s ears, with the deeper than ever before to get potential for early capital access to rich veins. repayment. Two shallow But deep mining is dark South African gold mines like a journey to the centre of that have been successful the Earth. At 3,461 meters, recently are the ASX and the depth of AngloGold JSE-listed Gold One’s Ashanti’s Mponeng mine in Modder East mine on the the West Wits area is 11 times WITS Gold Ceo MArC WATCHorN East Rand, and the TSX the height of the Eifel Tower. and JSE-listed Great Basin Rock temperatures can reach Gold’s Burnstone mine in Mpumalanga. 65 degrees centigrade. It is also dangerous – Wits Gold’s De Bron-Merriespruit (DBM) an average of 11 deaths every month project has similar geometries to Modder and costly. East, which although shallower, is not as But now Joburg-based Wits Gold is large as DBM‘s 2.5-million ounces at 8 g/t. confident that it has a new gold mine after Although it must be kept in mind that the DBM drawing resources at its shallow De Bronproject has a total indicated resource of nearly Merriespruit South project in the Free State, 6 million ounces. And while the Burnstone increasing its total indicated resource at the resource might be larger, its reef is narrower project by 52 percent to 5.9-million ounces. Within this the JSE and TSX- listed gold and than the DBM reef which has multiple superimposed layers that offer flexibility. uranium explorer has identified a shallow, It was a year ago that Wits Gold discovered high-grade part of the ore body, delineating that its De Bron project had the makings of an indicated resource of 2.4 million ounces a shallow mine, but lacking critical mass it with a grade of 8g/ton, with a further 1.7 made a deal with Harmony Gold’s Merriespruit million inferred ounces at a similar grade. (The difference between indicated and inferred south. Wits bought Harmony’s 40 percent in the De Bron project for R275m, paid for in ounces is the degree of confidence that those shares, along with a R10m deposit to secure ounces are there - with the latter the lowest access to Harmony’s Merriespruit property. level of certainty).
i really think we’ve got a new mine here
Wits Gold FeATure
Wits will pay Harmony R51m in May for ownership of the property which features heavily in the upgraded resources Wits Gold began in 2005 when it acquired mineral rights on the three major gold mining companies; AngloGold Ashanti, Gold Fields and Harmony in different areas of the Wits Basin adjacent to their mining leases. “We are an exploration company,” says Wits Gold’s Investor Relations Manager Hethen Hira. “After we acquired the data we put together geological models 90
wits gold’s defining feature is that we have mineable shallow resources that can be brought to account in a short time frame WITS Gold’S INVeSTor relATIoNS MANAGer HeTHeN HIrA
and identified project areas. These are multi million ounce underground areas, and we prioritise them based on their depth. And that’s where we are with the DBM project - between 500 and 1,000 metres below surface. Our key project will be up and running in three years time. Wits Gold’s defining feature is that we have mineable shallow resources that can be brought to account in a short time frame.” With the long-term decline of South Africa’s gold production seeing output fall from 427,981 kg in 2000 to 204,923 kg in
2009, what are the job implications for the De Bron-Merriespruit South project? “We had a discussion at the recent Mining Indaba in Cape Town. We were talking to a group that sank 1,000 metre shafts who estimated it would take about one- to two-years’ to sink the shaft and in the process employ about 400. Mining itself would depend on the resource blocks, but we could safely say direct 1,000 jobs. And as mature mines close, skilled labour becomes available.” In mining, investment is substantial and lead times long. “It’s mainly timing. It takes time to drill boreholes, evaluate the data, do prefeasibility studies and get resource statements out. Environmental work can take over a year. “There will always be a demand for gold, with a likely increase in investment here and in the platinum sector. We are targeting our shallow projects, which will get to production
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quicker after the feasibility stage, and as there is going to be increased investment, especially where the resources are known to exist.” Might investment be deterred by periodic threats of nationalisation from within sections of the ruling ANC? “The nationalisation call is rhetoric put out by people who want to get attention. The country sticks by its constitution, and this says that if property rights are taken away the owner must be compensated. The Government so far has stuck to its constitution and I don’t think it has the means to compensate. So we don’t see it as a threat at this stage.” In Wits Gold’s 2010 annual report, chairman Adam Fleming said much of the painstaking work of an exploration company happened behind the scenes, with little to get investors excited about. “Scanning for non-existent press releases from Wits Gold,” said Fleming,”is about as much fun as watching paint dry.” Well now the paint is drying, and patient investors like what they are seeing. END www.southafricamag.com 91
George DESTINY AFrICA Forging AheAD This multi-billion rand development, which entails a mega conference centre, hotel, waterfront apartments and eco centre, will transform the garden route into a global business and eco-tourism destination. By ian Armitage 92
Destiny Africa FeATure
estiny Africa is one of Africa’s single biggest private development projects. It is highly ambitious and aims to transform the Garden Route into a global business and eco-tourism destination. The R28 billion project will integrate world-class conferencing, a ‘knowledge city’, business-park, university cluster, medical and biosphere tourism and eco-residential and housing developments. “In all 2.5 million square metres of bulk rights have been approved for the project,” explains Fred Brown, the long-time project director, who has recently been promoted to CEO. It will ensure substantial developmental activity for Western Cape, he says. “It is a project of huge scale and ambition. Zoning approval was granted in 2009. The 437-hectare site is on the Garden Route within George.” Brown adds that although Destiny Africa was affected by the world economic slump, it was definitely still going ahead. “The recession has had an impact, but we are not deterred. The phase we are in now is that we are busy with rolling out the financial roadmap,” he says. Any starting date is still provisional, but the processes are being forged ahead with, with hopes that civil work could begin as early as 2012. “The financing of the project had slowed down as a result of the slump but the development, which entails a mega conference centre, hotel, waterfront apartments and eco centre is still being rolled out,” Brown says. “Importantly, all the approvals are in place and we have a letter of approval from the Western Cape provincial government supporting it. The civil work isn’t far off. We can start putting in the roads and
infrastructure during the later part of next year, which is a positive step forward.” Destiny Africa has helped George municipality with the upgrading of the Outeniqua Waste Water Works, making a positive contribution towards the local water situation. Brown says that “certain people” had put a question mark over large developments asking how they could be justified when George’s water storage capacity is inadequate to provide in its current needs. “Businesses and communities within the George area are aware that change is imperative,” Brown explains. “The project has been welcomed in anticipation of job creation for locals. It has the potential to uplift the social wellbeing of the communities in the area and it will contribute hugely to local tourism, local industry, SME development, and foreign exchange earnings through international conferencing.“ The main beneficiaries will be residents in poor areas like Thembalethu and Pacaltzdorp, he says. “Potential is huge,” Brown adds. “Even conservative projections envisage the creation of an estimated 50,000 direct and indirect jobs over the next decade. “A major driver and lead element in the overall vision of Destiny Africa is MICE or the meetings, incentives, conferences and expos,” he continues. “Destiny Africa also creates a platform to promote the Garden Route as the world’s premier eco-tourism destination. The Garden Route packs the most eco-diversity into the smallest land area on the planet. The potential goes untapped... we aim to change that.” Destiny Africa was initiated by a local consortium of business people via Khama Investments and KDMC, which was formed
Businesses and communities within the george area are aware that change is imperative
by Thys Pretorius, while land and development rights were obtained in partnership with Rand Merchant Bank. Brown has been heavily involved since the beginning. “The development company Destiny Africa Investment Holdings was set up to drive the project,” he says. Destiny Africa could be crucial to South Africa’s long-term strategy to become globally competitive and globally attractive as an investment destination and magnet for international skills, he adds. Brown explains: “International experience has proved that job growth and the growth of national economies can be triggered by using an ecosphere catalyst at the right location.” Successes include California’s Silicon Valley, Singapore, Shanghai, Hyderabad, Cancun and Cairns in Australia.
“We want to build a better South Africa, an empowered South Africa,” says Brown. “Destiny Africa aims to create a receptive environment integrating learning, business, lifestyle and eco-components - a smart city designed to attract smart people and smart business. That’s the Destiny Africa proposal.” Brown believes that business confidence has returned and investment is picking up. That said, property is still not see as a sound investment, although perceptions are changing. “This development provides a good investment and we are telling investors all about it,” Brown says. “There are other projects like this you could invest in, but we think this represents the best opportunity.
even conservative projections envisage the creation of an estimated 50,000 direct and indirect jobs over the next decade
Destiny Africa FEATURE
advert_Layout 1 2011/03/18 12:45 PM Page 1
“The Western Cape provincial government has been creating the right stimulation for the economy, to encourage investment; they obviously play an important role in the success of this scheme,” he continues. “They have given us great support. George has great potential. Obviously, I would like to see more support, but that is only normal, and we mustn’t forget the provincial government has already approved the development and is committed to its success.” Brown welcomed recent proposals to create incentives to make George a more investor friendly town - an initiative touted at the George municipality’s Economic Summit. “We need such a driver to help stimulate the economy,” he concludes. “It is great to see things taking off. This will be a first for Africa.” To learn more about Destiny Africa visit www.destinyafrica.co.za – this is not active at present. END
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Beekman, headquartered in cape Town, has been growing its market share in gauteng and the surrounding areas. Managing Director Kobus Stander tells us more. By ian Armitage
eekman, a canopy manufacturing pioneer, started off as a family business, based in the Western Cape. The company was established in 1977 and remained very much a family business until the Imperial Group brought a 51 percent share in the company in 2006, which grew to 100 percent two years later. The company is one of the industry leaders, specifically in the production of fibreglass canopies, says Kobus Stander, the man appointed managing director after Imperial took full control. “Imperial brought a 51 percent controlling share in 2006 and had acquired 100 percent control by 2008,” he tells South Africa Magazine. “Today we offer one of the widest ranges of canopies and accessories with fitment centres and agents across South Africa, equipped to cater to OEM-specific requirements or any customer need.” Stander has vast experience in the motor industry and was appointed managing director in June 2008. “This was a great challenge, too good to turn down and I have enjoyed it so far. The remit was to become even stronger in the market and we are well on our way to doing that,” he says. “Although Beekman falls under the Imperial umbrella it operates independently. Since 2008 we have put a lot of effort into bringing a new corporate culture into the business and expanding it to cover a greater area.” Becoming part of a corporate company was a challenge that the employees welcomed, Stander says. In line with Imperial’s forward thinking credo, Beekman has changed its corporate logo and has rolled out the new identity to solely owned depots, and then onto independent agents nationwide.
“Beekman remained very much a family business until the Imperial Group came into things; we didn’t want to lose that too much or take anything away from what was already a strong company. But this has made us stronger,” Stander continues. Beekman is one of the three major canopy producers and distributors in South Africa, with a healthy share of the overall market. It has, until recently, concentrated most of its marketing and sales efforts in the Western, Eastern and Northern Cape, where it holds impressive share of the canopy market. Beekman was seen as a good fit for the Imperial Group’s automotive operations, Stander stresses. It is one of the two manufacturing operations in the Imperial Automotive Retail portfolio: the other manufacturing operation is Jurgens, which makes caravans and trailers. “A big advantage for Beekman is that we have our own design and development facility in Cape Town and can also call on the group and benefit from them,” says Stander. “For instance, we have benefitted from the extensive facilities at Jurgens, which makes mainly caravans.” He went onto explain that Jurgens has extensive fibre tech experience as well as production capacity and it has helped with expansion into the Gauteng market. “Our focus has been on growing our business in Gauteng, the largest canopy market in the country, as well as in KwaZulu-Natal, another important market. The fact that Beekman became a wholly owned subsidiary of Imperial Automotive Retail has given us access to the resources that enable us to be far more aggressive in these areas. “Gauteng is a large canopy market, which is why we have targeted it,” Stander adds. “Obviously about 70 percent of South Africa’s
we are now targeting growth in new areas
economy happens in Gauteng. That is why our main focus is to grow that market.” Beekman currently has eight fitment centres and 28 agents countrywide. With the opening of a new standalone sales and fitment outlet in Randburg, it is now set for further growth. “We want to be where there are several motor dealership in close proximity, as we believe this type of service will play a big role in growing our business.” Beekman sells thousands of canopies a year and offers a range of more than 140 models - that includes catering for older model bakkies, as well as supplying accessories and bakkie lids. Beekman’s quality standards are particularly high and it is registered and approved by major vehicle manufacturers and distributors such as Toyota, Ford, Mazda, Nissan, General Motors, Hyundai and Kia.
It also puts a lot of effort into training, upskilling and upliftment programmes. “We put 20 unemployed people through MerSETA-approved training courses, with the majority of them later being employed at our factories,” Stander says. “We are extremely proud of our manufacturing plant in Cape Town, where we have been awarded ISO 90012008 certification. All our manufacturing processes and quality controls meet international standards,” he continues. In terms of the future, the short term will remain tough; longer term, things are far more promising. “We are always looking for new business opportunities and among our recent developments is the introduction of a range of very well finished steel canopies sourced from Thailand,” says Stander. “We are extremely excited about the future. Exciting times really do lie ahead,” he says. END
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paysoff DIVErSIFIED INVESTMENT STrATEGY
Don’t put all your eggs in one basket is the perfect mantra for someone looking to create a strong investment strategy, says Fred wörner, ceo of Skema Holdings. By ian Armitage
Skema Holdings FeATure
iversification is good for business and the mantra “Don’t put all your eggs in one basket” is perfect for someone looking to create a strong investment strategy. This is the opinion of Fred Wörner, CEO of Skema Holdings. He is proof that a diversified portfolio across industries can help you weather any storm. It will minimise risk and help you grow, he says. “Skema is both a globally competitive and diversified company,” Wörner tells South Africa Magazine. “We are involved in the manufacture and distribution of steel products, as well as conserving the environment through ecotourism. As you’ll see on our website, we have spread our portfolio across several industries… One way to hedge your portfolio against a downturn in a particular market is to invest across markets.” Many portfolios, he says, fail because they are weighted heavily toward one industry. The problem with the strategy is that if the industry suffers a downturn, your entire portfolio is at risk. “Skema Holdings is predominantly a manufacturing business, which produces the axles that go into trash carts sold all over the world,” Wörner explains. “Indeed, we are world’s largest supplier of waste bin axles, manufacturing from graded steel. Then, we have the friction rock stabilisers part of the business and both segments are recognised nationally and internationally for excellence. “We have CNC machining, electro plating and robotic welding,” Wörner says. The newest string to the bow – opened 2008 - is Karkloof Spa. The resort is located 24km from Pietermaritzburg, along the Otto’s Bluff Road and close to the Albert Falls Dam. It was primarily conceived as an escape or sanctuary,
far away from everyday pressures, like the noises, demands and stresses of big cities like nearby Durban, Wörner says. “This is a place where it’s okay to do nothing,” he explains. “Karkloof Spa boasts a luxury boutique lodge with 16 individually decorated villas, an expansive world-class Spa and 3500 hectares of bountiful terrain abundant with wildlife, offering you a variety of unforgettable experiences. “I like to say it is an ‘escape from time where you can surrender to nature’s bespoke offerings’,” he adds. At Karkloof Spa, the offering is one of “timelessness”. You can sleep as late as you want, and when you get up you can ask for what you want and it will be provided. It’s a luxury allinclusive resort. “I wanted to build a destination spa because I love spas, but it was also a good business move,” says Wörner. “Instead of competing with several thousand game lodges, we became a destination spa and we are competing against a much smaller number. “Yes, we wanted to compete in a smaller market, but at the same time we wanted to compete with the best in the world. “I wanted to create something that could compete with the best – and we have done that.” Karkloof Spa – which has an abundance of game and species of black and white rhino, buffalo, giraffe, zebra, wildebeest and a multitude of antelope, warthog and monkeys onsite - was recognised as “the best discovery of 2009” by Tatler magazine in the UK and as one of the top 50 spas in the world by Conde Nast Traveller. It also won first place under accommodations of the Indaba 2009 Welcome Awards. “Our main business for the last 20 years has been export of wheelie bin axles,” Wörner
one way to hedge your portfolio against a downturn in a particular market is to invest across markets
Skema Holdings FEATURE
says. “With the onset of the recession in October 2008, business fell off a cliff. The European market disappeared all together, almost overnight. By 2009, we had virtually nothing into Europe. Yes, it has since started picking up, but it is not steady. You get some orders for a month or two or three, and then it dries up. It is very tough; it is inconsistent uptake. “For us, with the strong rand, it is more difficult too: customers want to buy from us, but they can’t; it isn’t viable,” he adds. “Volumes are thus erratic. Markets are not strong and buoyant.” Wörner says there was – and still is – “nothing” Skema can do in terms of efficiencies; the manufacturing operation is already amongst the best in the world. “It is a challenging market and we have worked to reposition ourselves,” he says. “We have, through the 1990s, gotten involved in the mining industry with our friction rock stabilisers. That has had some reasonable years and since mid-2010 has been picking up nicely. 102 www.southafricamag.com
We have had growth there and that is where I think the future of our business will be.” The design of Skema’s friction rock stabilisers allows them to tighten as lateral rock displacement occurs, enhancing their yield capabilities. “After installation, the tube grips more tightly,” says Wörner. “It never needs tightening.” All friction rock stabilisers, he adds, are assembled using a state-of-the-art robotic welder, ensuring that the end product is “built to consistent high levels” of quality. Wörner says: “We have high hopes for this business. Exports of wheelie bins will continue, but we don’t see much growth short-term in that market. Recycling, for instance, is no longer a major focus for governments crippled by recession – they’ve focusing budgets on schools, police and that sort of thing. “Of course, the hospitality and wellness business has a bright future too,” Wörner continues. “Karkloof Spa is also home to a breeding programme for disease-free African buffalo herds. We are working
Zinchem is a division of the R1 billion a year Zimco Group of companies which forms part of the international Ecobat group. Zinchem supplies both local and international markets from a plant in Benoni, just outside Johannesburg. Zinchem was founded after the Second World War as a division of Anglo American at the time, to product Zinc Dust, which was used for gold cementation in Cyanide solutions. Through the adoption of best-practice Pyrometallurgical and Hydrometallurgical processes, Zinchem converts Primary and Secondary Zinc to superior quality Zinc chemicals, Chemicals and Zinc Alloys in accordance with the highest international standards. Our product range includes grades of Zinc Oxide, Zinc Dust, Zinc Sulphates, Zinc Nitrate, Copper Sulphate and a wide range of Zinc Alloys.
Tel: 011 746 5000 Fax: 011 421 2235 firstname.lastname@example.org
www.zinchem.co.za to establish a significant population of disease-free buffalo. The Karkloof Spa buffalo are bred in controlled circumstances in order to be certified as disease free. There is money to be made in this. Last year it saved our bacon and we sold over R40million worth of buffalo.” Karkloof Spa is the largest destination spa in Africa. It is a five star resort, catering for the top end of the market, where, says Wörner, “money doesn’t matter so much, but time does”. Customers are time poor but cash rich, he says; this is an escape. “It is all part of our strategy of diversifying into something unrelated to the steel industry,” Wörner explains. “Axles, mining equipment and tourism will move in different cycles so that when one business is perhaps having a difficult time, another one is performing well. We have moved into new niches, like buffalo breeding and other areas like hospitality and tourism. That is where we see a lot of growth and potential; we see them playing an important role in our future.”
Karkloof Spa was the only property in KwaZulu-Natal to have membership to Relais and Châteaux in 2010 and now takes its place amongst the best properties in the world. “Of course, I have good management teams running each segment – I am based here at the resort and look predominately after this business - and we will remain focused on all parts of the Skema group,” Wörner concludes. “One of the key elements leading to our success over the past 20 or so years has been the company’s neverwavering focus on quality – we were one of the first to get the ISO accreditation, for instance, and started out as a regional winner, becoming a national player, and then an international contender. This has spread across all segments and into new business ventures, as seen with the resort, which is a world-leader. This will continue.” To learn more about Skema Holdings or the Karkloof Spa visit www.skema.com or www.karkloofspa.com. END www.southafricamag.com 103
Breede KInGs OF THe
rIVer ValleY Since its establishment in 1985, Alpha Civil has been at the forefront of construction activities in the Breede river valley. By ian Armitage
Alpha Civil FeATure
he South African construction industry as a whole is cyclical in nature. These cycles – good and bad - end. Unfortunately, says Breede River Valley civil engineering and contracting specialist Alpha Civil, construction in the Western Cape Province is currently in a depressed state. Some experts have forecast that the housing industry will start to see an improvement this year. With regard to construction in the non-residential market, which includes factories, warehouses, shops, offices etc, the levels of investment are expected to continue to decline, however. “In terms of total construction works such as civil works, roads, bridges, pipelines and the like, the level of investment has dropped year on year,” says Alpha Civil director Gert Labuschagne. He warned that given all of this, as well as lower tender prices, there are some pretty tough times ahead for Western Cape contractors. “As a business, we have had to adapt and change to where the focus of investment lies. Look at the recent construction projects awarded: local government is a critical client of the industry.” The public sector is playing a much bigger role, he says. “The private sector is determined by factors like interest rates, confidence, economic perceptions of growth and actual growth. The government and local authorities, on the other hand, are far less sensitive to change in the short term and
they have budgets that they plan towards. They also have integrated development plans in place. “Yes, it has been a tough period,” Labuschagne continues. “But, we tend not to emphasise one specific part of the economy or focus on one particular form of contract or client. We are people that can do more than one thing: we are batsmen and bowlers. We are in a fortunate position that we are in a very diverse market. We don’t specifically look for or focus on a specific project or type of work. We can move with the demand.” Since its establishment in 1985, Alpha Civil has been at the forefront of construction activities in the Breede River Valley. With an enviable track record, backed up with years of experience, the firm can specialise in “technically and logistically complex projects of all sizes,” says Labuschagne. “Our headquarters is in Worcester and we draw on vast experience to excel in niche multi-disciplinary contracts including road and weigh bridge construction, urban and rural developments, office and industrial buildings, retail centres, reservoirs and environmental remediation.” The company also has extensive experience in the provision of infrastructure for the food and wine industry. “Where are we seeing current demand coming from? Well, there is a lot of maintenance work going on in terms of the road networks and we have had a lot of culvert structure work. We tendered two jobs recently valued at R26 million and the total scope of works for the whole contract, not just our part of it, was R100 million. Some of the culverts were is a sorry state
in terms of total construction works such as civil works, roads, bridges, gas pipelines and the like, the level of investment has dropped year on year
and it involved inspecting, repairing and replacing a number in the Western Cape.” The food and wine industry, too, is full of potential. “We are fortunate in our location; we are surrounded by fruit and wine farmers. They have had a bumper crop this year. We are hoping that when the money comes through for this bumper crop that they’ll start expanding. The wine industry here is a big industry, as is the food sector. There is a lot of work we are hoping for.” Alpha Civil is a CIDB Grade 7CE contractor. It means the firm
can tender for contracts of a value up to R40 million. The highest grading is nine. Alpha Civil is prohibited from tendering for contracts up the grading scale and the tender system has some floors, says Labuschagne. “The idea is that those with a nine grading should appoint smaller, local contractors on big projects,” he explains. “Costs mean it doesn’t always work like that. What has happened with us is that we have effectively given up on large contracts where we can be subcontractors because it is just too expensive. We can’t compete. “Like all things in life, however, the situation is not
As a business, we have had to adapt and change to where the focus of investment lies. Look at the recent construction projects awarded; local government is a critical client of the industry
Alpha Civil FEATURE
all bad,” he continues. “But, it is definitely not all good. You find the bigger contractors survive on smaller margins and the smaller contractor, obviously to survive, needs a bigger margin. It is an inherent problem in economies of scale. I don’t think the problem lies with the CIBD; I am sure it is not confined to this industry – it is commonplace.” Labuschagne says public sector clients are making “contracts smaller, breaking up the big ones into smaller chunks”, perhaps in response to this. “We have a lot to offer,” Labuschagne says. “Alpha Civil has local knowledge, competency and skill. Sometimes using a bigger piece of equipment or a bigger contractor on a smaller project is like cutting a carrot with a cleaver. You need a small knife for small work, you need a big knife for big work.”
Alpha Civil has something of everything. With considerable in-house or external resources available, the company provides needs analysis, feasibility studies, cost effective design, procures permits, offers construction and project management, and scheduled maintenance. High profile projects include a turnkey contract completed in 2010 for Amalgamated Packaging Limited to the value of R27.4 million, and construction of a new cellar and tasting area at Waverley Hills Cellar, Wolseley. As part of the drive to conform to Government’s BBBEE policy, Alpha Civil bought out a local ABE construction company, Tema Projects and sold 25,1 percent of the company’s shares to HDIs of both companies. END
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happen M A K I N G
Some of the greatest companies sprang from the combination of an idea and a passion - gautengâ€™s leading building materials and services business, K Carrim group, has plenty of both. 108 www.southafricamag.com
K Carrim Group FeATure
here are serial entrepreneurs and then there are family businesses; it’s hard to say which category K Carrim Group should be placed in. Certainly E Carrim belongs to the former: the founder of the construction materials dynasty set an outstanding example to his children, the youngest of whom -AB (Aby) Carrim - had not even been born when he opened the original hardware store, KE Bazaar, in the old Marabastad Area of Pretoria in 1964. Aby Carrim recalls that his father came from a highly disadvantaged background and was brought up in poverty and without the benefit of a father to guide him. “He worked for various different people before he eventually started buying paint in small quantities, selling it at a profit.” Following those early success, and a loan from a relative, E Carrim was able to “take on a small shop, and he built the entire business from that,” Aby says. Sadly E Carrim passed away in December 2010, at the age of 70. But, he has left a remarkable legacy: the truly entrepreneurial spirit he demonstrated has been passed onto his sons. Just as impressively, the 50-square metre shop he started has since grown into a diverse building materials group with more than 60,000 square metres of premises in the Gauteng area. Hardware is still the core business though. K Carrim Builders Mecca and K Carrim Wholesale Hardware, which has superseded the original shop, has grown into a comprehensive distributor of building materials serving both the trade and the DIY market and supplying other hardware stores within South Africa and abroad.
“The founding principle, to serve customers with the goods and services they really need, has shaped the business through its growth period,” says Aby Carrim. “K Carrim was built simply on the basis of serving whatever the customers who walked in asked for. For example when they needed roof trusses we eventually bought a business that made roof trusses. There was a shortage of supply at one time so we looked into setting up various other industries that complements the business in order to serve the clientele.” The diversity of the group is one of its characteristics these days. Among the businesses that have been added along the way are Tile Mecca, which imports and distributes tiles and bathroom equipment, supports a design service and has installed tiling in a number of exclusive locations in South Africa and abroad. “Ultimately we grew into the property and real estate business because that added value to the retail and wholesale operations,” says Aby. “We became our own best customer! We put our resources into our own property business and one thing fed off another.” The property business started 1980 with residential housing units, and then moved up to commercial property. More recently Carrim went into the hospitality business though at arm’s length - acquiring a luxury hotel in Cape Town: the Icon hotel, close to the V&A waterfront and International Convention Centre. “It has a roof top swimming pool with amazing views over the city, Management, however, is outsourced to Living Hotels, which markets the up-market concept,” says Aby.
K carrim was built simply on the basis of serving whatever the customers who walked in asked for
K Carrim Group FeATure
So today’s K Carrim group, though it is still focused on retail, has branched out into manufacturing, wholesale, property development – and logistics, trading out its 40,000 square metres distribution centre. Growth has taken place at opportune moments from the point of view of the economy and market conditions, Aby says. In more straitened times the job gets harder. “It is a challenge to grow now, and the risk factor is high. But there is room for growth in our market and we are making efforts to capture it”. He stressed that rewards are also greater to expand in this economical climate.
we are a family business and we like to uphold what is moral and ethical, what is good for the country
These days that will do nicely, and in any case, the greenshoots of recovery can be seen. “In my opinion and that of my colleagues we have passed through the hardest times. The company has reached critical mass, the big risks are behind us, and things can only get better. While growth is restricted for a while we just had to work very hard to capture what business there was, and we have succeeded thank God. We are on the up!” While investment in new housing dried up and the building materials side of the business fell, people spent more on home improvement. Now the banks are starting to lend again, mortgages are coming though faster than a year ago. And any increase in
trade sales brings growth in hardware too. As Aby Carrim puts it, “If you are buying timber for your roof you need hammer and nails to knock it together!” The latest new venture is a new nail and roof screw factory set up from scratch just a few months ago. At first glance this looks rather counterintuitive – why make commodity fastenings like this when they are easy to import? The decision sprang from a combination of commercial sense and the ethos of the company he explains. “We had been importing nails and screws but we believed that we could do it profitably in South Africa and at the
same time bring some new skills to our local employees. We brought in some people from overseas to help us set up the operation then transfer their skills to our staff.” This desire to do the right thing by the employees, as well as what is good for business, reflects the principles of the late Chairman of the Group, E Carrim. “We are a family business and we like to uphold what is moral and ethical, what is good for the country, and what enhances our good name as we go along! Now the way forward is to live everything he taught us and remember every little thing he said even more than before.” END
i truly believe that we are still able to grow our total business at perhaps five percent per annum
The importance of
clean Industro-Clean manufacturers and distributes cleaning machines. The company offers single disc, machines, scrubber-driers, sweepers, dry vacuum cleaners, wet and dry vacuum cleaners, as well as a host of other equipment and services.
eatness is not hard to achieve. Look around you: what do you see? If your surroundings are not neat, it can be a source of stress. So, achieving clean and ordered surroundings should be a priority. How and where do you start? In 1980 Industro-Clean (Pty) Ltd was formed. The current directors, Arthur Bath, Dave Manson and Terence Waterston recognised the need to “create a niche business that was focused on offering customers exemplary service and choice” and, most importantly, was prepared to “work with any client irrespective of its size or status.” In March 1982 – according to the firm’s website, www.industroclean.co.za - IndustroClean and Wetrok signed an agreement which laid the foundation for “Wetrok South Africa to become a significant player on the South African cleaning landscape.” A cleaning giant was born in 1984 when Wetrok South Africa successfully applied for a licence to manufacture – locally - Wetrok branded chemicals. The licence gave Wetrok SA the capability to “offer a one-stop total solution to customers, considerably increasing exposure for the brand.” Wetrok SA operates as a subsidiary of Wetrok AG. “The next watershed in Wetrok SA’s local journey was the launch of the hospital cleaning method,” the website adds. “This was a dramatic departure from what was common practice at the time and today Wetrok SA is exceptionally proud of the fact that the SAQA Unit Standard principles for hospital cleaning are still based on its cleaning method.” Its HQ is in Honeydew, northwest of Johannesburg, and there are 11 branches across South Africa, as well as a distributor in Namibia. In order to boost training and skills, Wetrok SA established the Siyaya Skills Institute
cost-efficiency, reliability and back-up are prime considerations
in 2002 – a skills training initiative that has brought the role of the cleaner “out of the washroom closet and into the spotlight”. “Industro-Clean has never marketed a cleaning concept based only on price - there are greater considerations than just initial costs – performance, maintenance and servicing, spares availability, reliability and trade-in or residual value,” the company says. “Cost-efficiency, reliability and back-up are prime considerations and are an essential element of the Wetrok offering.” Industro-Clean has ISO 9000 quality management system accreditation from SABS and a Level 4 BBBEE status by Transformex. The company is an active member of several professional bodies, including the National Contract Cleaners Association (NCCA). Industro-Clean is also a distributor for HOST Carpet Cleaning Systems, Royal Vacuum Cleaners, PacVac, Rubbermaid, Vileda and Filmop, all products that are complementary to the Wetrok product range. 114 www.southafricamag.com
NILFISK ACQUIRES SHARE Industro-Clean is a key player in the South African market. Recently, Nilfisk-Advance – a Danish firm which manufacturers professional cleaning equipment, sweepers, scrubbers, high-speed polishers, vacuums, pressure washers, and floor machines - expanded its Southern African base by acquiring a substantial share in the company. The share acquisition and conclusion of a distribution agreement “will greatly enhance Nilfisk-Advance’s presence in the African subcontinent” where the company already operates through its South African Sales Company, Nilfisk-Advance’s CEO says. “By gaining access to Industro-Clean’s outstanding levels of expertise and its well established presence in the contract cleaning, institutional, and health sector, we are underlining our excellent position for growth in this very interesting emerging market,” says Jørgen Jensen, President and CEO of Nilfisk-Advance.
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“Industro-Clean was founded in 1980 by its current senior management and after more than three decades of steady growth presently occupies a market leading position in the country,” says Industro-Clean director Dave Manson, who spoke with a South Africa Magazine researcher recently. “Core product categories comprise floor cleaning and maintenance equipment, detergents, access floor matting, janitorial and mopping trolleys, as well as consumables and specialized hygiene products.” In order to maximise the benefits of the strategic alliance between Nilfisk-Advance South Africa and Industro-Clean, the companies will adopt a “coordinated approach where each company continues to concentrate on its core market segments”. Nilfisk-Advance South Africa will continue to place its focus on general industry, automotive, construction, mining, agriculture, engineering and manufacturing while Industro-Clean will concentrate its efforts in the contract cleaning and institutional field, as well as the private and public health sector.
“With this new strategic partnership we will be able to supply professional cleaning equipment for all sectors and therefore expect our turnover from South Africa to double within the next 3-5 years,” says Jensen. The two companies already have a good working relationship. For a number of years Nilfisk-Advance South Africa has exclusively supplied Industro-Clean with the full range of Viper cleaning equipment. Viper products emanate from Nilfisk-Advance’s Chinese manufacturing company with the same name, acquired in 2008 and known for its rugged, no frills highly competitively priced floor care range of equipment. In a press release, Nilfisk-Advance said the partnership will ensure its products are distributed “throughout all sectors of the South African economy and thus place one of the world’s most extensive and most proficient product ranges at the disposal of all customer segments in the African subcontinental region”. END www.southafricamag.com 115
ROSES ARE RED, BUT THE ACSA FEATHER AWARDS ARE GREEN. Winner of the 2010 ACSA Feather Award for OR Tambo, Cape Town and King Shaka International Airports, in recognition of service excellence.
Visit www.europcar.co.za to read more.