pEopLE cuLTuRE TRAVEL pRopERTy BuSiNESS WiNE SpoRT ENTERTAiNMENT
iSSuE 32 R40.00
R1bn Boost FoR SouTh AFRicAN
Land Bank is better placed than ever to assist south Africa’s farming community
In it to win it
the National Lotteries Board has distributed millions but now faces some far-reaching changes
You bet!
Betting World is one of south Africa’s premier bookmaking operations
Dare to think differently
the name eikos derives from Ancient Greek and roughly translates as ‘all that is possible or probable’
New name, same good service sasfin Logistics, formerly Premier freight, is embarking on an exciting new journey
LIGHT IN THE DARK As we approach the December shutdowns, with 2012 coming to an end, we can look back at what has been a turbulent year, economically and socially. But, such is the beauty of South Africa, we can look forward to 2013 and the future with optimism. In all challenges there are opportunities and that is certainly the case here. Yes, 18 years after democracy, South Africa is still grappling with issues of race, representation, redress and equity. Only together, not divided, we can tackle those issues. And business has a major role to play. A major opportunity. South Africa has been hit by a wave of wildcat strikes mainly focused in the mining sector which, if left unchecked, could lead to greater social upheaval and unnecessary death as in the case of the Marikana massacre. At the root of the problem is high unemployment currently at 25.5 percent. The question is how we fix it. In my view, what South Africa needs is a combination of a very large small and medium enterprise (SME) sector and high impact entrepreneurs, eager to drive change. This month we talk to a number of businesses and individuals eager to do just that. The one at the front of my mind, while not an SME, is Land Bank. I had the privilege of talking to Dr Moraka Makhura, who outlined how a R1 billion boost for South African farming could help to create jobs. As has been the case in recent months, a number of the businesses we talk to continue to diversify, grow and capitalise on the opportunities in the African continent, particularly our closest neighbours, creating thousands of jobs along the way. There are businesses like M&C, Traditional Brands and Sasfin Premier Logistics, all of which are expanding and creating or safeguarding jobs. There is a lot to look forward to and much within our pages this month. Enjoy the magazine!
eDitORiAL
editor ian Armitage sub editor Marie Toms editorial Assistant clare Durrant Writer Susan Miller
BusiNess
Advertising sales Manager Matt Syder sales Donovan Smith Eddie clinton Research Manager Stuart Shirra Researchers Elle Watson Sandra parr Stuart platt Tom Lloyd Michael Fair sales administrator Daniel george
ACCOuNts
financial Administrator Suzanne Welsh
PRODuCtiON & DesiGN Magazine design optic Juice
Production manager Jon cooke images: getty, Thinkstock News: NZpA, AAp, SApA
DiGitAL & it
Head of digital marketing & development Syed Ahmad
tNt MuLtiMeDiA
CeO kevin Ellis Chairman ken hurst Commercial David Alstin Publisher TNT Multimedia Ltd TNT Multimedia Limited, unit 209, 16 Brune Street, London E1 7NJ tntmagazine.com
eNQuiRies
Telephone: +44 (0) 207 989 0491 Fax: +44 (0) 1603 624642 matt.syder@tntmultimedia.com
suBsCRiPtiONs
Ian Armitage Editor
call: +44 (0) 1603 343167 ian.armitage@tntmultimedia.com
www.southafricamag.com www.southafricamag.com
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Contents 06 14 18 22 28 32 38 44 50
News eN t eRt A iN M eN t
Interview: Kate Turkington
Kate turkington is one of South Africa’s best-known broadcasters, travellers and travel writers
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L if e s t yL e
Winning the Lotto
The National Lotteries Board has distributed millions but now faces some far-reaching changes
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CO VeR Fo o D & A g R ic uLT uR E
R1bn Boost for South African farming
Land Bank is better placed than ever to assist South Africa’s farming community says Dr Moraka Makhura
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fO Cu s FR A Nc hiSiNg
No fowl play here!
one of the main reasons behind traditional Brands’ success is that it operates on a strong family ethos
Now wait a Minute, man!
Minuteman Press is one of the world’s leading printing franchises
fO Cu s S up p Ly c hAiN
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A logistical dream
South Africa Magazine profiles KZNbased end-to-end logistics provider GMA Logistics (Pty) Ltd
New name, same good service
Sasfin Premier Logistics, formerly Premier Freight, is embarking on an exciting new phase
fO Cu s R iS k MA NA g E M E NT
Dare to think differently
The Eikos Group has dared to think a little differently and the approach has worked says Chairman Dr tony Valsamakis
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fO Cus T Ec hNoLogy
Connective intelligence and the road to expansion
Business Connexion’s Rodwell Zvarayi and Eric Stokes on ‘connective intelligence’, an award winning mobile app and plans to expand
fO Cus M ET A LS
Heavy metal
Pro Roof Steel Merchants has grown from humble beginnings to become one of the largest and most prominent steel merchants in the Southern Africa
fO Cus M A iNT ENA Nc E & RE pA iR
Generating success
Marthinusen & Coutts has eyes on expanding further into Africa
fO Cus E NgiNEE RiNg
Structurally Sound
South Africa Magazine profiles consulting engineering firm Anderson Vogt Consulting
fO Cus BE T T iNg & gA M iNg
You bet!
Betting World is one of South Africa’s premier bookmaking operations
fO Cus M A Nu FA c T u RiNg
The competition left trailing
We talk to top trailers’ national sales and marketing manager William Mathee
eV eNts
Events calendar
Highly recommended events www.southafricamag.com
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All the latest news from South Africa Strike season
Farm workers suspend strikes Farm workers across the Western Cape have suspended an at times violent strike to allow the government to review minimum wages following protests that saw vineyards and houses set alight, and resulted in the death of a man in Wolseley. “An agreement between government and labor suspends the strike for two weeks and workers will return to work tomorrow,” Cosatu said. “Should the new minimum not be acceptable, then workers will continue their strike on December 4.” The farm workers began protesting on November 6, demanding a daily wage of R150. Farmers offered just R80. 6
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Workers will earn a minimum R80 while the review is finished and disciplinary action won’t be taken against those who went on strike, Cosatu said. Labor Minister Mildred Oliphant said that the current R70 a day minimum wage for farm workers would be cancelled and renegotiated.
“The sectoral sets out the minimum wages that people need to be paid in that specific sector,” she said in a statement. “In the inspections that have been concluded, we have found that some farms paid more than the minimum and I believe that is the right thing to do.” Western Cape police confirmed that a man was killed and five other people were injured during protests in Wolseley on November 14. “The man died as a result of police action, but we cannot give more details,” Lt Col Andre Traut said. The Independent Police Investigative Directorate will investigate.
Strike season AngloGold Ashanti’s
Mponeng mine
resumes production Workers at AngloGold Ashanti’s Mponeng mine have ended their illegal strike and returned to work, bringing all the firm’s six operations into full production after weeks of stoppages. Workers at the mine, which is south of Johannesburg, had staged underground sit-ins, demanding monthly wage increases of up to R18,500. “AngloGold Ashanti is pleased to report that normal operations have resumed at its Mponeng mine in South Africa following successful engagement with employee and trade union representatives over the past week,” the company said. All mining and processing at Mponeng was suspended on November 6. The strike was ended by both sides signing an agreement governing “safe work and labour relations”. “This is an important set of guiding principles, drafted and agreed between AngloGold Ashanti and a diverse group of labour representatives,” Mike O’Hare, AngloGold Ashanti’s executive vice president of South Africa, said. “These principles provide a good foundation for a constructive relationship into the future which is essential for all stakeholders given the long-term nature of this business.” The strikes began on September 25 and ended on November 15.
AngloGold
profit slumps following strikes
The world’s third largest gold producer AngloGold Ashanti has announced its earnings slumped 49 percent in the third quarter, due largely to labour unrest and deadly unprotected strikes in South Africa. AngloGold said profits fell to $235 million, compared $457 million a year before, amid strikes that froze production at the company’s six South African mines for more than a month. “It’s been a tough period for the industry here, but we’ve taken decisive action on a number of fronts to stay the course,” AngloGold Ashanti chief executive Mark Cutifani said. “Our major projects are on track and we’re making the decisions to ensure we maintain a lean, fit business that will continue delivering strong returns.” AngloGold Ashanti previously reduced its capital expenditure budget for this year by $200 million to between $2 billion and $2.1 billion. It is also conducting a study of its corporate costs, focusing on drawing fewer, higher-quality ounces from its South African mines and reviewing the timing of projects including the Sadiola Deeps project in Mali and the Mongbwalu project in the Democratic Republic of Congo.
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Strike season
Marikana commission hears
claims of police ‘cover-up’ Lawyers representing miners who were wounded in shootings at the Marikana mine - and the families of the 34 miners killed presented photographs and video footage to the Marikana commission of inquiry on November 6 that suggested police might have planted weapons on massacred miners and that
some of those who were killed had their hands tied behind their back. One body was riddled with 12 bullets, the inquiry heard. Showing video footage recorded after the shooting on August 16, lawyers accused the police of a massive cover-up. Family members at the hearing wept.
Separately, Finance Minister Pravin Gordhan said that South Africa’s export revenues would be R12.5 billion lower this year, as a result of the strikes that swept across the mining sector. Mr Gordhan was responding to a Parliamentary question from the Congress of the People’s Nick Koornhoff.
Amplats workers report for duty Employees of Anglo American Platinum in Rustenburg and Pilanesberg north returned to work on November 15, ending a more than eight-week strike that crippled the world’s largest platinum producer, the company said. Company spokeswoman Mpumi Sithole said the workers returned and would get safety briefings before work began. “The company is pleased to welcome its employees back to work,” Sithole said. “The employees will be briefed by mine management. “We anticipate that it will take a week to get to safe start-up before we can start implementing the ramp-up programme.”
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During the strike the company fired 12,000 workers, then later reinstated them. They reached a deal after Amplats offered a one-time payment and salary options to the striking workers. On November 14, workers agreed to a R4500 once-off payment and a pretax, stand-alone allowance of R600 a month, the National Union of Mineworkers said. Workers were given the option of the R600 allowance or a salary increase of R400 a month. In a statement to investors, the company said its year-end earnings “will decrease by more than 20 percent” compared with the previous year, partly because of the strike.
Money
Eskom
Sport
Proteas, Australia
price hikes draw first Test unavoidable:
Gigaba
Public Enterprises Minister Malusi Gigaba has said that Eskom’s planned 16 percent electricity tariff hike every year for the next five years was unavoidable. “It is not fair, it is necessary,” the Sapa news agency reported Gigaba as saying, following a business breakfast in Fourways on November 13. “Given the challenges that we have, we need to ask South Africans to bare the collective pain to fund this build programme and go through this painful process.” Eskom submitted an application to the National Energy Regulator of SA in October for a 16 percent tariff hike every year for the next five years.
The first Test between Australia and South Africa has ended in a draw, with the Proteas just managing to prevent the hosts from pulling off a shock final day win at the Gabba. Australia’s unlikely hero Nathan Lyon (2-41) ensured some anxious moments when he removed dangerman Jacques Kallis (49) and Jacques Rudolph (11), exposing the Proteas’ tail. When Lyon trapped Rudolph in front, South Africa down a man due to JP Duminy’s series-ending injury were 5-165 in their second innings, just 50 runs ahead with 15 overs left. But AB de Villiers (29 not out) kept his cool to guide the Proteas to 5-166 when play was called off with 11 overs left. The second Test will be held in Adelaide from November 22. If South Africa lose the three-Test series, Australia will claim the world No.1 Test ranking.
Duminy out for rest of Test series Proteas batsman and spinner JP Duminy has been ruled out of the rest of the Test series against Australia and for the foreseeable future after rupturing his achilles tendon in a training mishap following stumps on day one. After enjoying the rub of the green to take a vicelike grip on the three-Test opener, South Africa’s luck
took a spectacular turn for the worse when Duminy slipped on the Gabba surface when running around with teammates. The Proteas reached a commanding two for 255 at stumps with Hashim Amla and Jacques Kallis approaching centuries, but must now finish the series without their leading spin bowling option. www.southafricamag.com
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Business
Vodacom seeks sub-Saharan
acquisitions
On the same day telecoms giant Vodacom announced its H1 results, media reports suggested it is seeking acquisitions in sub-Saharan Africa. The Reuters news agency reported on November 12 that the mobile operator, which is South Africa’s leading mobile operator but is dwarfed in Africa by rival MTN, is looking to grow its African presence. According to the report, Chief Executive Shameel Joosub said that, to maintain the current pace of growth, Vodacom required a bigger African presence. “For us to sustain the growth going forward, we think we need to look at new opportunities,” he was reported as saying. “Our African model is working and we’re confident we can roll it out successfully.” Vodacom already has a presence in Lesotho, Mozambique, Tanzania and the Democratic Republic of Congo (DRC). The telecoms giant announced a 22 percent rise in H1 profit, helping its shares rise five percent, hitting a record high. “This was a great set of results with improvements in the traditional voice business and strong performances in the data and International segments lifting overall revenue growth,” Mr Joosub said in a statement. South Africa´s service revenue grew 1.3 percent to R23.8 billion. “Thanks to our proactive added value approach, particularly the use of voice and data promotions, traffic growth in South Africa more than offset the impact of lower prices. Our strategy of driving smartphone penetration and data usage is working well, with the number of active smartphones in South Africa growing 36 percent and the average amount of data used by each of those handsets up 46 percent. Across the group, only 35 percent of our active customer base is using data so we’re still very much at the beginning of this growth trend,” Joosub added. 10
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Tourism
Cape Town
named Africa’s
best city Cape Town has been named Africa’s best city in the Condé Nast Traveller 2012 Readers’ Choice Awards. It also finished second behind Charleston, US, in the top cities in the world category. The other cities in the top 10 included Florence, Bangkok, Vancouver, Sydney, Beirut, St Miguel de Allende, Buenos Aires and Gustavia. Readers scored Cape Town 92.3 for ambience, 89.3 for lodging, 86.7 for culture and sites, 86.6 for friendliness, 86.0 for restaurants and 69.2 for shopping. 46,476 readers participated in the annual survey. Cape Town Tourism CEO, Mariëtte du Toit-Helmbold, said: “The quality of our tourism industry offerings and the intuitive staff within the sector is ultimately what makes these awards possible. If travellers weren’t going home happy they wouldn’t be voting for Cape Town. We commend the industry and the people that work so hard to help make visitors’ Cape Town experience so memorable.” The Twelve Apostles Hotel and Spa in Cape Town was voted Africa’s best hotel.
Sport
Soccer players die in minibus
crash National Soccer League club Polokwane City FC is mourning the loss of four of its stars following an accident in Limpopo on November 11. The players were killed when their minibus collided with a bakkie along the R71 road near Polokwane. The taxi was travelling from Oscar Mphetha stadium, where the team had played against FC AK. It landed on its side in the path of oncoming traffic, where a bus crashed into it, the Sapa news agency said. Premier Soccer League chairman Irvin Khoza was devastated by the news. “It’s a tragic loss for the South African football family. We extend our condolences to the families of the players and management of the club,’’ he said. The NSL named the players as Koketso Takalo, Robert Mphuti, Moeketsi Nthete and Silvester Mpaketsane. South Africa assistant coach Thomas Madigage, also from Limpopo, died in a car crash near Burgersfort last month. (Image credit: Polokwane City © Backpagepix)
Business
Telkom CEO resigns Telkom CEO Nombulelo Moholi has resigned. Moholi was appointed as Telkom’s fifth CEO in seven years in March last year. “Moholi has notified the company of her intention to step down before the end of her contract period. She has given the board the requisite six months’ notice in this regard,” the parastatal announced. “The company would like to emphasise that Ms Moholi’s intended departure does not impact on its operational capabilities, and on its ability to provide customers with the best possible service.” Telkom also announced that board director Neo Phakama Dongwana had resigned.
Lifestyle
No more ‘Shoot
the Boer’: Malema Firebrand politician and expelled ANC Youth League president Julius Malema will never again sing “Dubula iBhunu” (Shoot the Boer). The Star reported that Malema confirmed news he was party to an out-of-court agreement on the singing of the controversial song. “Yes, I am party to the agreement and I will continue to practice my culture and my heritage and I will continue to be sensitive to the needs of other communities,” he said. “We need to educate our people about our culture in relation to our struggle, but also we need to educate our people of being sensitive so that they do not offend other people or communities.” www.southafricamag.com 11
Business
BHP preparing
Woman dies
departure
Linkin Park gig
for Kloppers
BHP Billiton has confirmed that it is preparing for the departure of chief executive Marius Kloppers with a succession plan. The global mining giant said it had always had a continual succession process for its senior executives. South African-born Kloppers, 50, achieved an Australian corporate record net profit in fiscal 2011 on the back of the mining boom. However profit dived by 35 percent this year as he faced criticism over his tenure. A BHP spokeswoman said succession planning was a critical task and the board had always ensured it had a wellintegrated, continual succession process in place for its most senior executives. “This well-established planning process has worked effectively for many years and delivered a track record of smooth succession at the Group Management Committee level,” she said in a statement. London’s Financial Times has claimed that BHP chairman Jac Nasser is leading the process to replace Mr Kloppers.
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Lifestyle
www.southafricamag.com
after scaffolding collapses outside
A woman has died and another 19 people were injured after scaffolding collapsed at Linkin Park concert in Cape Town on November 7. Rescue teams said high winds caused a temporary scaffolding rig to topple onto a crowd as the American band prepared to go on stage. The incident happened at around 6.55pm SAST. Officials confirmed a 32-year-old woman died as a result of her injuries. A spokeswoman for Cape Town’s Christiaan Barnard Memorial Hospital said: “The woman was at the concert when she was hit by the scaffolding. She was brought to our hospital but sadly passed away at around 11pm.’” According to media reports, around 10,000 people were within the Cape Town stadium precinct when the scaffolding collapsed in an external car park. The gig went ahead as planned. Linkin Park sent condolences to those involved in the tragedy. “Following our performance tonight at Cape Town Stadium, we were advised that several people were injured as a result of the collapse of an advertising tower erected by Lucozade in the parking area outside the venue,” the band said in a statement released on its website. “We wish to express our deep sadness and concern for those injured and our heartfelt condolences to the family of the fan who died as a result of her injuries.”
Economy
Africa’s robust growth no mirage Africa’s robust growth is sustainable and the continent can attract even more investment, an influential group representing the world’s top financial institutions says. The Institute of International Finance (IIF) said that the world’s second fastest growing region could maintain 4.7 percent annual growth seen since 2007, according to its maiden report on sub-Saharan Africa. The IIF represents leading banks and financial institutions around the world, many of which hold large amounts of government bonds. “After emerging Asia, Africa is the fastestgrowing region in today’s world,” said George Abed, head of the IIF’s Africa and Middle East department. “Many countries on the African continent have achieved great progress in stabilising their economies and consolidating their rates
of growth. “What is remarkable about this outcome is that it has been achieved during a period of unprecedented global financial turbulence.” In a report covering seven of the region’s leading economies, the IIF said a potent cocktail of lower debt, better economic management, political stability and an extended resource boom had led to an economic explosion in the long crisis-plagued region. For six of the countries - Ivory Coast, Ghana, Kenya, Nigeria, Tanzania and Zambia - the report said total external debt declined from 62 percent of gross domestic product (GDP) in 2003 to 17 percent in 2011. South Africa continued to receive the bulk of the continent’s inward portfolio investments, the report said.
Business
BHP exits diamond mining BHP Billiton, the world’s largest diversified resources company, has become a little bit less diverse after exiting the diamond mining business. On November 14, BHP confirmed speculation that it would sell its EKATI diamond business in Canada to Canadian miner and jewellery retailer Harry Winston Diamond. The sale price is $500 million, but BHP said it would also book a non-cash
impairment charge of about $200 million on the asset’s carrying value. The move is consistent with a desire by BHP, under chief executive Marius Kloppers, to strip away and simplify the business and follows the recent sale of interests in South African titanium producer Richards Bay Minerals to Rio Tinto. BHP has been disposing of its smaller or less-profitable
divisions with challenging outlooks, including nickel and aluminium, focusing instead on large, long-life, low-cost, expandable, upstream assets. “Together with the recent sale of our interests in Richards Bay Minerals (mineral sands) and Yeelirrie (uranium), (the sale) reflects our ongoing pursuit of a simpler business,” BHP chief executive non-ferrous Andrew Mackenzie said in a statement. www.southafricamag.com 13
iNTERViEW:
K A t E tuRKINGtoN
rafting Whitewater s on the Gange
kate Turkington is one of South Africa’s best-known broadcasters, travellers and travel writers. her weekly Sunday night three-hour live Talk Radio 702 / capeTalk talkshow Believe it or Not is one of the country’s longestrunning radio talkshows.
By Susan Miller
K
ate Turkington’s 702/CapeTalk talkshow Believe It Or Not, a non-denominational and multi-dimensional approach to philosophical, moral and religious topics and issues from our daily lives, celebrated its 20-year anniversary in August last year. 14
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I asked the broadcaster, travel writer and blogger about her longstanding career and fascinating life. Before you arrived in South Africa you worked for the BBC. Did you enjoy it? I worked for BBC in Northern Ireland for seven years with stints at the World Service in London. It was an
amazing time of the troubles, Bernadette Devlin and loads of interviews. I also worked on Good Morning Africa for the BBC. Interestingly, one of my producers from 702 is now working on that – it’s funny how the wheels turn around. I had my own TV show in the 60s so I got to interview everyone including the Beatles!
Kate turkington iNteRVieW
73 r 1st time age fo g in iv d a ub Sc off Zanzibar
With holy man in I ndia On the way to gorilla tracking in Uganda
After living in West Africa for a bit, you say you were very comfortable in Ireland. Why did you end up in South Africa? We thought we should travel a bit before settling down. My late husband always told the story: he wanted to go to South America; I wanted to go to South Africa, and so we compromised and went to South Africa. He had a job with Anglo American in 1970 and we thought it would be for two years but we never left. I love South Africa, there is nowhere in the world like it where the people are so friendly.
Did you join the SABC? I assumed I would work for the SABC but took one look at it and decided to freelance. It was technologically advanced because South Africa got TV so late but it was just a government propaganda machine, as it is now. The bosses have just changed. Things have improved of course. In 1994 there were about 14 radio stations and now there are about 120 - and stations like Radio 702 and Cape Talk and TV stations like e.tv are not government-owned so are freer. www.southafricamag.com 15
Tell us a bit about Believe It Or Not? Believe It Or Not turned 20 in August last year and I had many people calling up to celebrate its birthday. How does it work? I’ve only ever had two pre-recorded programmes in the whole run, because I much prefer it to be live. Only once did I cut a caller off, as I realised from what he was saying that he was a fanatic. I will always listen to people’s views and respect them – even if I don’t agree with what they’re saying. The programme is not about my beliefs but the listeners.
Kate with personal guards in great Rif t Valley 16
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ously at the Living danger Vic Falls Over the 20 years I have regular listeners, some from day one, who have stayed with me and it’s become a family with new listeners joining. From day one the demography has been that just under-70 percent of my listenership are men. I have no idea why. We started off with a majority of white listeners and now it’s about half/half. We enjoy a range of views and a wide listenership and hope for new slants on peoples’ beliefs and enjoy getting different points of view. While people might disagree over ideas etc they all want the same things – a roof over our heads, education for our children and health. Audience numbers have grown and we have also grown together, learning new wisdom and understanding. We have all learnt about each other too. If you think that I do five interviews of 30 minutes per show, and times that by 52 x 20 – we have covered thousands of interviews and topics. The listeners love the topic of reincarnation and I usually start that with an open line. My show when I got back from my trip to India was on What Makes You Happy, and I was flooded with SMS from people. It’s good to know so many of us are happy. It was a great upbeat programme.
Kate Turkington interview
At the K alahari, March 2 008
We enjoy a range of views and a wide listenership and hope for new slants on peoples’ beliefs and enjoy getting different points of view. While people might disagree over ideas etc they all want the same things – a roof over our heads, education for our children and health
Have there been any low points? Well, my daughter Tara phoned the birthday show and spoke about the amount of work that goes into the programme and the discipline that is needed. She reminded me of the time I was a bit rough with a cult leader from Kansas who called on his followers - of which he had a fair amount - to put a curse on me. The Turkington curse! Weirdly, the very next day, one of the 702 transmitters went down. It’s like people who phone in about the world ending on a certain date; I usually say to them, ‘I am sure it will not be ending then. Even if it does, there’s nothing we can do and we won’t even know about it’. Am I a religious or spiritual person? I take no position on that. It’s my job to listen to other people talk about their faith and beliefs. How on earth do you fit in your show, travel writing, media training and more? I keep going at such a pace because I have an enormous amount of energy. I always have had it and it’s a wonderful thing to have, especially as you get older. I find it easy to concentrate on the task at hand. I read quickly, can write an article in under an hour and I read a book a night. I don’t watch much TV. I’ve worked since I was 21 to now (78 years) and have no intention of stopping. I am so lucky because I love what I do. What has changed over the years? The rise of youth culture and electronic media is the big thing. I was lucky. I was tweeting from day one and was among the first to use emails. I Facebook and am quite technically savvy – although I can’t change a light bulb. END www.kateturkington.com www.southafricamag.com 17
W i nn i n g t h e
Lotto Since its inception in 1988 the National Lotteries Board has distributed millions but now faces some far-reaching changes.
By Susan Miller
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National Lotteries Board lifestyle
G
ames of chance have enthralled humans over the centuries. Who among us has not bought into ‘quick-win’ scenarios promised by the National Lottery, slot machines and even horseracing? Certainly not me, but I understand the pull. Years ago kind friends led me away from the casino after I realised I could go on drawing my (limited) funds from a cash machine at the Wild Coast. But taking a lottery ticket or two is ingrained in our family, as my father says ‘you can’t win if you haven’t got a ticket’! We’re not alone. According to worldlottery.net, in 2006 a staggering 82 percent of South Africans played one of the lottery games regularly with an average spend of R81 a month. That’s quite a sum for low-earning South Africans but then, as we all know, it’s the possibility of a life-changing win that draws players in. Last year one lucky player scooped a massive R100 million, enough to change more than his life. That was exceptional though as the jackpot rolled over 24 times. The winner bought a R10.5 quick ticket for the draw and handed it in to the cashier of the store he bought it from after the draw. The machine said it was not a winner but the cashier scanned it twice more and eventually came back with the message that he should contact the Lottery. The rest is history. And it’s not just one game that we play either. Operator Gidani introduced Powerball in 2009 to join Wina Manje (the scratch card game), Sportstake, LOTTO and LOTTOPlus, www.southafricamag.com 19
which put us in the big league – joining Powerball players in the UK, Australia and the US. Launched in 2000, the SA Lotto is far and away the most popular form of gambling in South Africa by value and number of players. Its basis is the Lotteries Act (No 57 of 1997), which provides the framework legislation for lottery regulation, management of the National Lottery, establishment of the National Lottery Distribution Trust Fund (NLDTF) and the allocation of National Lottery proceeds to good causes. The Act, amended several times, remains our most important legislation on lotteries. The National Lotteries Board (NLB) is responsible for overseeing the allocation of funds to various good causes and NGOs across the country. So how is that working out? According to the NLB’s website they granted more than R14.4 billion to good causes since 2001 through the NLDTF, including R2 billion to beneficiaries in the 2011/2012 financial year, ending 31 March. In the first quarter of the 2012/2013 financial year, the NLB paid out R437 million to beneficiaries. As a hugely prominent player in the South African funding arena, it’s naturally come under scrutiny. Critics have suggested that it has been too slow to disperse monies and it is currently offering advice through helpdesks to donor applicants where the required NLDTF disbursement has not met the required five percent per province. Such helpdesks have been set up in the Northern Cape, North West, Free State, Eastern Cape, Gauteng and Western Cape. Earlier this year, in what Media 24 referred to as Lottogate, Gidani was fined R7.5 million for a security breach after an internal thief was able to get away with R250,592 in unclaimed prize money. NLB spokesman Sershan Naidoo said the board 20
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was ‘comfortable that the breach was not severe enough for the licence to be revoked’. Gidani - whose licence expires in 2014 – is keeping the Board informed about the South African Police investigation into the fraud. To add to complications, the chairperson of the NLB, Professor Alfred Nevhutanda, has been the subject of an independent probe ordered by the Department of Trade and Industry (DTI), after it was revealed in 2011 that the NLB had approved more than R41 million in funding to an entity called Makhaya Arts and Culture. They, Media 24 revealed, employed Nevhutanda’s daughter Murendwa as a marketing executive shortly after receiving the multimillionrand grant. Naidoo said the Board ‘welcomed the investigation’.
National Lotteries Board lifestyle
According to the NLB’s website they granted more than R14.4 billion to good causes since 2001 through the NLDTF, including R2 billion to beneficiaries in the 2011/2012 financial year, ending 31 March
While Professor Nevhutanda stressed to me that he had not been part of the distributing agency that had adjudicated and finalised the decision and had not influenced the company that employed his daughter, he admitted that ‘as a leader you must be cautious’. In October the DTI published the Lotteries Policy Review discussion document, which included a variety of proposed reforms. Among them: persons appointed to Distribution Agencies should be appointed based on skills, expertise and availability to serve on a full-time basis and also that persons who agree to be appointed as Distributing Agency members should have no interest in any organisation that benefits from lottery funds. The Democratic Alliance (DA), a critic of the NLB, welcomed the proposed reforms and promised to ‘participate fully in the consultation process to ensure the reformation of the National Lotteries Board’. Shadow Deputy Minister of Trade and Industry, Geordin Hill-Lewis, said the party remained concerned that the document recommended that the Minister of Trade and Industry should ‘still be responsible for appointing members of the Distribution Agencies’. He said the DA believed that ‘new board members should be appointed free from political interference and based on their knowledge of the NGO sector’. So the NLB since its inception in 1988 has distributed millions but now faces some farreaching changes. A well-run, speedy and transparent distribution of funds would be welcomed. After all many of the funding allocations have been very popular with the South African Paralympic team of 2012 receiving funding and some crucial organisations depending on it. Professor Nevhutanda says he wants to leave ‘a legacy of being transparent’ and it was what the public wanted that mattered to him. That is most probably a fair chance of winning and the knowledge that the funds raised are going to the most worthy causes. And, of course, to be the person in the story entitled ‘latest Lotto millionaire’. END www.southafricamag.com 21
R1bn Boost FoR SouTh AFRicAN
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Land Bank COVeR fOCus FooD & AgRicuLTuRE
in July, Land Bank and the African Development Bank entered into a R1 billion funding agreement to give farmers better access to funding.
By ian Armitage
F
ood production at all levels of agriculture needs to be increased to feed South Africa. While some see that as a challenge, many see opportunity. And it is a fantastic opportunity. South Africa already has a fairly large and active agricultural sector and there are almost a thousand agricultural cooperatives and agribusinesses throughout the country. Agricultural exports account for about eight percent of the country’s total exports and the sector contributes around 2.6 percent of GDP for the nation. However, the industry accounts for just 10 percent of formal employment - relatively low compared to other parts of Africa. There is certainly growth potential. And empowerment potential. For 100 years, the Land and Agricultural Development Bank of South Africa (Land Bank) has been the bank of choice for the South African farming community – and is still the only bank specifically specialising in agricultural finance solutions. Land Bank is a development finance institution whose mandate is to support, promote and facilitate the development and transformation of the agricultural sector through the objective of the Land Bank Act. The bank was established in 1912 to promote rural and agricultural development and is a key financial player in agriculture. “We are wholly owned by the Government,” says Dr Moraka N Makhura. “Of course we are a finance institution that’s focused on agriculture and our mandate is to support, promote and facilitate www.southafricamag.com 23
Land Bank COVER focus food & agriculture
the development and transformation of the sector. We operate in terms of the Land and Agricultural Development Bank Act (15 of 2002) and basically this mandate is to provide finance to farmers, promote participation of historically disadvantaged communities, support and promote commercial agriculture and assist government in its land reform initiatives. When we say developments, we are referring to transformation of land development, and in terms of increased production and productivity of agriculture. We are making sure that agriculture is
24
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profitable, reputable and environmentally sensitive, all the while making sure that the country’s food security is maintained and enhanced. We also have to ensure transformation of agriculture to make it equitable in terms of gender balance, racial balance, etc. It’s therefore a broader phase of development. In the main, however, the Land Bank provides finance to farmers through the funding that it raises from the capital market. The government, however, like all shareholders from time to time provides capital injection to meet certain objectives, like
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We are a finance institution that’s focused on agriculture and our mandate is to support, promote and facilitate the development and transformation of the sector
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strengthening the capital base, building the balance sheet, supporting its developmental imperatives and so forth.” Land ownership is a thorny issue in South Africa with government’s assertion that around 80 percent of South Africa’s agricultural land is still in the hands of white farmers against the almost 80 percent of Black Africans. Government’s original plan to have 30 percent of disputed arable land diverted back to the black majority by 1999 has failed. Section 25 of the Constitution states that land must be expropriated “within law” and for an “equitable price”. “So basically, the bank, after 1994, started broadening its scope by including black farmers who used to be excluded,” Dr Makhura explains. “In the past, most South African institutions were only really looking at the white farmers. So after ’94 the bank had to come up with strategies to support historically excluded farmers. That happened in a big way and that ended up,
+27 11 259 4000 info@iqgroup.net www.iqbusiness.co.za
to some extent, stretching some of the financial reserves. It created a funding gap. In addition to policy changes as well, there were also some challenges in the financial sector, with drought in 2003-2004 making it difficult for borrowers to repay their loans. In 2005 the prices of agricultural produce were low and the ability of farmers to service their debts was adversely affected. All those issues started piling up into a financial strain on the organisation. There were also issues in relation to policy and strategy.” This affected the sustainability of many of Land Bank’s operations – it had to act, fast. “We’ve put ourselves and our operations now on a more sustainable level,” Dr Makhura says. “Whilst we remain committed to increasing the outreach, empowering as many people as possible, the main focus for us is to improve processes and systems to ensure that our liquidity or funding is enhanced – that will in turn enables us to achieve even a greater outreach to new farmers. www.southafricamag.com 25
“We’re looking at both sides of funding to make sure we enhance the way we raise funds while continuing to reach out to more farmers and industries. We are also looking at interventions to assist farmers to be more sustainable thus mitigating risk in our financing activities. This includes partnering with other stakeholders in the sector to give new farmers technical support in areas like production, management of finance, how to access markets and so forth. “We are continuing to diversify our sources of funding through which we aim to address two main challenges. These include the liquidity of the Bank, and giving the new farmers cheaper finance through development funding. We have realised that you cannot extend finance acquired at market interest rates at a discounted and hope to sustainably support the emerging farmers for long. If you did, you would soon get out of business. Thus we are on a campaign to get funding from multiple sources that are developmentally oriented including government and multilateral development finance institutions such as the African Development Bank and others.” In July, Land Bank and the African Development Bank entered into a R1 billion funding agreement to enable both emerging and commercial farmers to access finance at affordable rates. The Bank will repay the loan over 15 years. “The loan includes a two year grace period on repayment which enables us to provide funding to emerging famers that is tailor26
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made to their specific cash flow requirements. Emerging farmers, they’re not generating cash straight away, so typical financing mechanisms aren’t always suitable. This offers a grace period in both capital and interest components of the loan until the project or farm starts generating cash flow to service the debt. “This sort of funding is ideal and means the loan can go further.” Dr Makhura is positive that other investors will follow the African Development Bank’s example and that the sector can attract even more developmental funding. “Maybe in the past, agriculture was not viewed as a very critical sector. It was just left to farmers
Land Bank COVER focus food & agriculture
Whilst we remain committed to increasing the outreach, empowering as many people as possible, the main focus for us is to improve processes and systems to ensure that our liquidity or funding is enhanced
and experts and institutions already involved. That said, the sector was always significant in terms of its contribution to the economy through job creation, foreign currency earnings through exports, and the development of downstream economic activities. “What we have seen now, since the turn of the millennium and the onset of the financial crisis, is the increase in food prices and shortages of food in certain places and that has resulted in enhanced significance of farming activities. The sector is a hugely important economic driver and that has created a number of opportunities for growth. For example, there’s an increasing need for food production to ensure food security, and that creates demand for agriculture products such as fertiliser and equipment and so on. Because of this, there is always a need for more scope of production. “Another very interesting driver is that over the last 10 years agriculture has been one of the best performing sectors in terms of return on investment. It creates a higher demand for investors, while presenting opportunities for both the new entrants and established farmers, the government, and financiers. “The end result is that we can introduce new farmers into the sector and if we can find ways to support them then the chances of them succeeding becomes very high.” Land Bank is 100 this year and its work is seemingly more important than ever. END To learn more visit www.landbank.co.za. www.southafricamag.com 27
No fowl
play hERE!
one of the main reasons behind traditional Brands’ success is that it operates on a strong family ethos, an ethos that has seen “old Fashioned” Fish and chips expand its reach and the introduction of a new chicken brand, chingos chicken.
By ian Armitage
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Traditional Brands focus franchising
T
raditional Brands is a name that stands for strong family values, sound business practices and, most importantly, exceedingly good food. It is so successful - and so tasty that it is hard to believe that the “Old Fashioned” Fish and Chips franchise opened its first outlet just five years ago. Today it has over 350. More are expected. If that wasn’t enough, Traditional Brands recently also launched the Chingos Chicken concept, as strategic motivation for what both brands stand for: fantastic value and traditional, good food. The first Chingos store opened in April alongside the “Old Fashioned” flagship store in Elma Park. “Chingos serves all things chicken,” says marketing director Nicolas De Sousa. “The concept developed from a strategy session on what would be the second brand to join the reigns of “Old Fashioned” Fish and Chips. After hours of general concepts and ideas, the natural logic on development had crossed our minds – how did we create “Old Fashioned”? The answer, the success of my mum, Emilia De Sousa, and her idea of what the consumer loves. In our opinion, everyone has something to love at home and the love of a home begins in the kitchen. The concept of the heart of a home combined with the aroma of a hearty kitchen table, a family Sunday lunch, the oven blazing and mum in her apron and mitts with the anticipating thoughts of the warm bite into a fresh Sunday roast. Done mum’s way. That’s what is behind Chingos.”
Chingos builds on the core principles that made “Old Fashioned” Fish and Chips the fastest growing franchised brand in South Africa: clinically clean, friendly service, great quality, low prices and a sound business model which encourages investment. The new brand is strategically positioned to be a constant reminder of where the brand started and how it has evolved, Nicolas De Sousa says. Both brands offer products that have tradition at its core. “How would I describe the Chingos experience? Slow roasting, long basting, patient perfection, are only a few words. Take your mind back to the days you would sit around the kitchen table with your siblings, taking in smells so appetising your stomach would sing. That’s what we recreate. Chicken is one of South Africa’s favourite foods but also not something offered to the masses in this particular way. This isn’t just a chicken recipe, its chicken done Mum’s way. It is chicken made with love and an investment opportunity developed with a core focus on quick returns and sustainability in the www.southafricamag.com 29
toughest of economic climates. Rotisserie chicken is a chicken lovers best friend and it’s our specialty. So where has Chingos been all this time? Waiting, perfecting and misusing ingredients to develop the newest chicken concept for all food lovers alike. Now, finally, a tradition that started in the very home of a mother of three, is ready to be served to the nation with pride.” While meeting the standards of RASA, as well as organisations striving to develop a ‘sustainable seafood industry’, and using only the best product, from A-grade potatoes to sustainably caught fish, Traditional Brands is able to guarantee a product that confirms to the core values of the brand. “Quality and our core values are everything,” Nicolas says. “The evolution of what is now Traditional Brands seeded from the success of “Old Fashioned” Fish and Chips. The evolution was not only stemmed as the big brother of the incredible brand but because we consider it Africa’s greatest ever brand. We consider this to be one of the globe’s greatest brands going forward. We have always been a company that thinks big, but it is now time for us to think further out of the box and begin a process to ‘partner smart’. That is a programme that has begun with the communities around us in Southern 30
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Africa. You can’t expect to develop the need for a product without the understanding of the country’s demands. “Traditional Brands is the umbrella for “Old Fashioned” and Chingos. We are responsible for maintaining high standards and consistency. The Traditional Brands umbrella was most definitely a necessity after the launch of Chingos, not only for a strategic implementation of a complete corporate image but greater introduction to an international level or corporate governance. Traditional Brands will always hold the core focus in its hands for all the brands we own or manage.” He expects 50 Chingos stores to have opened by February. “The benchmark already exceeds that of the initial “Old Fashioned” growth spurt. There is no secret but our recipe of logic of basic strategy implementation, using resources to create demand, and the demand stimulated for the foundation for the sale of a profitable product of service if done right. Of course it always sounds a lot easier in layman’s terms but the detailed formula to the success of our second brand is a great mix of diversity and emotional community awareness. Creating your very own community is essential to every formula for success for growth.
Traditional Brands focus franchising
“Instead of trying to force onto the market what sells, we have altered the formula for demand in a rather drastic manner without the investor or even consumer knowing it. Pricing has increased but so has the concept of value added appeal. The initial cost for the investor has again increased, but so has the formula for improved ROI. Rather than pushing the understanding of cheap and quantity, we have simplified the quality and quantity to more for the same. This has been the core strategy for us to compete with the global leaders and improving on this has always kept direct and indirect competitors guessing at every turn.” Despite the rapid growth of “Old Fashioned” Fish and Chips (a brand that has an average of an 11 month ROI) and the introduction of Chingos, the De Sousa family has not lost its personal touch and passion for the brands – founder and CEO Emilia De Sousa, the inspirational source behind the brand, can often be found standing side by side with a franchisee at the opening of a new store while son Nicolas famously tests and improves products in his own kitchen. With expansion into Africa clearly in its sights, Traditional Brands shows no sign of slowing down. Every year of operation serves as an acknowledgement of the franchise’s success, so do various RASA Awards of Excellence. Traditional Brands is definitely worth keeping an eye on. END To learn more or for franchise opportunities visit www.traditionalbrands.co.za. www.southafricamag.com 31
Now wait a
MINutE
MAN!
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Minuteman Press fOCus FRANchiSiNg
Minuteman Press is one of the world’s leading printing franchises says the man responsible for running its South African operations, Frik van Niekerk.
By ian Armitage
A
s one of the most prestigious printing franchise organisations in the world, Minuteman Press needs little introduction. It has been rated the top printing franchise in the world over 20 times by Entrepreneur Magazine. That’s an amazing feat and perhaps unsurprisingly the firm “occupies a unique position” in the printing industry. “We’re a global business born from the US,” says the man who heads up Minuteman Press in South Africa, Frik van Niekerk. “We’ve been in South Africa since 1996.” Minuteman was founded in 1974 and has been franchising since 1975. “I’m very much enjoying the challenge that is Minuteman in SA. There is a lot of growth still to come in the market and we have ambitious growth plans,” van Niekerk continues. “We’re very happy with performance and have increased sales to date on last year – over 10 percent – so it is going really well. We’re looking to put some new stores in the Western Cape. Everything is going fine.” His goal is to “strengthen and grow existing operations” and add “three to four” new stores a year. The Western Cape, Free State Province and KZN are “the main” focus. “It is an exciting time. We’re certainly seeing the benefits of our marketing efforts and have been updating our SEO-SEM programme that runs through the whole website and generates a lot of leads. I think the brand is getting more and more well-known and I would attribute a lot of the last years’ successes to that.” www.southafricamag.com 33
Minuteman Press focus Franchising
Konica Minolta South Africa Konica Minolta South Africa has a longstanding relationship with South Africa’s biggest printing and copying franchise, Minuteman Press South Africa. The company, through its award winning bizhub digital production presses, has assisted numerous Minuteman Press outlets countrywide to produce the highest quality digital printed material for countless clients. “Konica Minolta South Africa values its relationship with the Minuteman Press group. Our focus goes further than supplying only hardware equipment as we centre our business offering on also providing excellent back up support and additional professional services, such as integration, development of custom solutions and specialised services,” says Leon Minnie, product manager: production systems at Konica Minolta South Africa
Mr van Niekerk joined the firm in 1998. He previously worked for AM International, a firm that supplied Minuteman Press International. “I was employed to provide back-up support to its SA operations and it was in 2009 that I assumed responsibility for the SA region when Adele Schalit, who introduced the concept to South Africa, retired.” Minuteman Press is a franchise organisation that specialises in printing services, copying and document reproduction and graphic design services. By “combining the quality of a commercial printer with the ease and speed of an instant printer”, it has carved a unique niche within the printing industry. “Our outlets offer an extensive range of products and services,” says van Niekerk. “We do everything including digital printing, binding, colour copying, design, embossing, foil stamping, full colour printing, logo design 34
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In addition to the Minuteman Press group, Konica Minolta South Africa has business partnerships with various other print companies that benefit from its award winning production equipment, from short run on-demand printing, quick and effective proofing solutions to corporate print rooms and commercial printers. The company also supplies a range of software solutions to manage centralised print environments, web 2 print solutions, variable data printing (VDP), photo books, mail houses and remote monitoring systems, all to improve productivity and maximise return on investment. Konica Minolta South Africa, wholly owned by the Bidvest Group, stands at the forefront of business solution providers as the principal importer and distributor of the innovative and award winning Konica Minolta range of bizhub digital multi-functional colour and black & white devices, business solutions and digital production equipment, into South Africa as well as Namibia, Malawi, Botswana and Swaziland. Konica Minolta South Africa’s head office is based in Johannesburg and 17 branches and 48 dealerships support its distribution network. For further details, visit www.konicaminoltasa. com or contact Konica Minolta South Africa on 0860 bizhub (249 482)
and saddle stitching. The product range includes envelopes, flyers, invitations labels, manuals, menus, price lists and presentation folders. Pretty much everything.” Minuteman Press, he concedes, isn’t the cheapest – and it wouldn’t pretend it was. What it does offer is unrivalled quality. “Our quality speaks volumes. All businesses I know of use print and we are able to offer high quality service while fulfilling the total graphic needs of almost any customer. The formula works and our financials prove that.” In 2009 Minuteman Press SA enjoyed over five percent growth. In 2010 it was close to seven percent. In 2011 it was 12 percent. This year it was 10 percent. It’s a phenomenal achievement. What’s the secret? “I think that we have always focused on small- to medium-sized businesses in a particular area and that is the key – service delivery,” van Kiekerk answers. “We focus on those customers and at the same time give them excellent service and a high quality product. Our niche market is a void 36
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We remain in that segment of the market and as a franchise we are always growing in number. It has a lot to do with our ability to develop innovative strategies to be a step ahead of the market and competition
Minuteman Press focus Franchising
I think our performance shows that businesses need printing services no matter which way the economy turns
that is created between the big commercial printer and the copy shop type of operation and that is why we’re successful. We remain in that segment of the market and as a franchise we are always growing in number. It has a lot to do with our ability to develop innovative strategies to be a step ahead of the market and competition. We add value for clients and haven’t been tempted to cut back and offer that cheaper price, which often affects quality. “At the end of the day there are some businesses that are all about price and there are some who focus on quality – a quality product, delivered on time and at a reasonable price. We strive for that. “I think our performance shows that businesses need printing services no matter which way the economy turns.” Van Niekerk continues to successfully implemented Minuteman Press’ winning formula on South African soil. He says it has a lot to do with choosing the right franchisee – hard working, highly motivated, with a high regard for service excellence and the ability to “follow systems”. “We’ve created a blueprint for success. Our plan going forward is to remain a leading brand in SA within the industry. We want to build on existing relationships that we’ve taken time to build up and we’re going to expand our footprint, particularly in the Western Cape.” A new Minuteman Press outlet will open in the Western Cape early next year. To learn more visit www.minutemanpress.co.za.
END
www.southafricamag.com 37
dream iT’S A LogiSTicAL
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GMA Logistics fOCus SuppLy chAiN
South Africa Magazine profiles kZN-based end-to-end logistics provider GMA Logistics (pty) Ltd.
By ian Armitage
F
inding the perfect logistics provider is not an easy task. There are many out there. But they aren’t all right for you. And if you choose the wrong one it could wreak havoc on your supply chains, customer service levels and reputation. “At GMA Logistics we’ll tailor-make and integrate global solutions that are powerful and reliable, with leading-edge freight and forwarding expertise across South Africa and around the world,” explains Eugene Arcache, the firm’s managing director. GMA Logistics is a leading provider of shipping, freight forwarding, customs clearing, warehousing, transport and distribution services, with full service centres in Durban, Johannesburg and Cape Town. It has a global network of agents, partners and associations, and is a name you can trust. “Our directors have more than 100 years of collective experience,” Arcache says, adding, “The key to our success is management’s ability to provide hands-on solutions with quick responses to facilitate speedy freight movement. Our aim is to meet global demands with customer focus, operational excellence and through strong leadership.” The original company was formed in 1951. Mr Arcache’s late father founded it, a man he describes as “a shipping man through and through”. That business was known as GM Arcache Shipping (Pty) Ltd, and it was the freight logistics division that was sold to GMA Logistics (Pty) Ltd on March 1, 2008. “The company was started in 1951 by my late father when he was 41 years of age,” says Mr Arcache, taking up the story. “It started from zero and my father built
www.southafricamag.com 39
GMA Logistics fOCus SuppLy chAiN
the company through dedication and hard work. He had a passion for the business and today it is one of South Africa’s leading freight logistics businesses with a fine reputation for its service levels.” The company has gone through various phases of development, and today operates out of its wholly owned properties and other facilities. “I joined the business virtually out of school at the age of 26 and was made Managing Director. I have been here ever since,” Arcache continues. “It was in 2008 that we brought on a Broad-Based Black Economic Empowerment (B-BBEE) partner, Imbewu Capital Partners, selling them a 25.1 percent stake in the new company. The balance of the shares being held by GM Arcache Shipping (Pty) Ltd and management. “We’re very much committed to black empowerment. We are currently a level four compliant company in terms of South African Government legalisation, and we are a value added supplier.” GMA Logistics has many strengths. “Our biggest asset is the tremendous depth of expertise that we have, which is a commodity that is fast evaporating due to the skills shortage in South Africa,” Arcache says. “We have got staff that have been here over 30 years and are regarded as part of the family culture that exists. We’re professional and maintain very high standards in all sectors of our business. We are also very progressive and continue to invest heavily in all areas of our operations, thus ensuring 40
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JVC Freight Carriers Established in 1992, J.V.C Freight are precursors in transportation brokerage, having solid credentials and a dedicated employee compliment that have taken pride in providing quality service standards and from humble beginnings, the enterprise started with a miniscule client base, and has since recorded substantial growth. Primarily, the company’s successes are due to providing every transport need within one organisation in an ever increasing and demanding market. With a growing list of associations and a formidable client base, including GMA Logistics, J.V.C. Freight is a truly a unique company at the forefront of the industry; and one that is evolutionary and its development, thinking and foresight.
Domestic and international transport by road and rail
Your logistics needs managed from A-Z Tel: +27 31 335 6160 Fax: +27 31 337 8527 E-mail: jvc@ispace.co.za Web: www.jvcfreight.co.za
KSN Logistics CC
South Coast Transport 路 路 路 路
General Transport Contractors, Local & Long Distance Hauliers Warehouse & Containerisation Facilities Member of Harbour Carriers Association Member of Durban Chamber of Commerce
Laurel Logistics are proud to be associated with GMA Logistics and wish them every success in the future Head Office: 40 Truro Road, Congella PO Box 12426, Jacobs, 4026 Tel: 0027 31 205 9844/54 Fax: 0027 31 205 9658
Johannesburg: 73 Palmer Street Alrode South, Johannesburg Tel: 0027 11 900 3757 Fax: 0027 11 900 3758
Laurel Logistics 10 Penford Grove Berea, Durban 4001 PO Box 29229, Maydon Wharf
Tel: 031-2099576 Fax: 031-2091429 Cell: 0828813384 Email: laurellog@mweb.co.za
GMA Logistics FOCUS supply chain
our competitiveness in our industry. The company is committed to the highest service levels together with honesty and integrity in all its dealings. GMA Logistics continues to grow yearly and no doubt we are performing ‘better than most’.” Following the financial crunch of 2008, physical volumes declined to the tune of about 30 percent. But “being financially strong and well established” GMA was able to “weather the storm”. “The board of directors took a decision that it would not retrench staff and we would not reduce working hours,” Arcache says. “We held onto our entire infrastructure and human resources, thus ensuring our expertise and readiness for when the economy turned around. That put us in a strong position, as a lot of people had been lost in our industry due to retrenchment. South Africa, like most of the world, went through a tough year in 42
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2009, but we were able to take advantage when business activity started to improve 2010. “From 2010 we continued to grow our business to the tune of about 15 percent per annum. This year we are on target to do the same.” Next up, Africa. “It’s a large emerging market,” Arcache stresses. “By virtue of South Africa being the gateway to Southern Africa, we have placed a lot of focus in the development of this region and therefore positioned our company to take advantage of the increase in freight.” Mr Arcache is just as driven and determined as his father. He has helped build an enterprise, a customer-focused leader. His passion and drive are shared company-wide. Expect to see more of GMA Logistics. END To learn more visit www.gmalogistics.co.za
good service New name, same
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Sasfin Premier Logistics focus supply chain
I
Now 100 percent owned by Sasfin, Sasfin Premier Logistics, formerly Premier Freight, is embarking on an exciting new phase, 35 years after first entering the market.
By Ian Armitage
n March financial services company Sasfin acquired the remaining 31,58 percent of Premier Freight it did not already own. The transaction made Premier a 100 percent subsidiary of Sasfin and led to a number of changes – a new name, for one. The firm now known as Sasfin Premier Logistics is a multi model freight forwarding concern offering logistical solutions to the fields of international freight forwarding, by air, land or sea; customs clearance; domestic deliveries; and warehousing distribution solutions. Peter H Ehrenreich was appointed MD in 2011 and promoted to CEO in 2012. He has been driving change within the business ever since. “It is all part of Sasfin’s drive to expand service offerings into a broader commercial solution business,” he says. “It is an exciting new chapter and we’ve seen a lot happen in the last 12 months.” According to Mr Ehrenreich, being part of “a dynamic group” means Sasfin Premier Logistics can offer clients the services of an expert team, identifying the needs of importers and exporters from start to finish, and also satisfy them. The best way to think of the company now is like runners in a relay race, handing over the baton from one runner to the next. “It is a network, a team, working together, handing over to each other from one leg of the supply chain to the next. We call the concept ‘start to finish’.”
www.southafricamag.com 45
Sasfin Premier Logistics focus supply chain
The concept integrates import trade finance, foreign exchange, marine insurance and all facets of logistics, he says. “This holistic import/export solution is only a small part of the benefits that we, as the Sasfin Group, can offer. It enables businesses to benefit from the flexibility of freed up working capital.” Tamica Ching, sales and marketing director, agrees: “Our customers have responded very well to the change; it’s been very positive. I believe that is because of how we have managed the whole process, internally and externally. We very much view our clients as partners and have kept them abreast of all the developments and changes that have been happening. Clients are excited and I believe we will see the real differences as we investigate additional opportunities to add value.” In line with its ‘new beginning’, Sasfin Premier Logistics restructured internally. A number of management changes have taken place and Mr Ehrenreich has 46
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introduced several new initiatives to the company, including an organisational restructuring and a new integrated IT system. “The state-of-the-art CargoWise/ Compu-Clearing system will increase value for customers in improving efficiencies and transparency on each supply chain movement. We are only just getting started and the system will provide several other customer-specific benefits. “When I came in, I looked at how we conducted business and had lots of ideas about modernisation, how we could streamline the management team - which was top-heavy - and so on. I looked at the entire business and was given full backing from my board. I feel confident because we have wonderful staff, there is a good spirit here in our organisation and we have a strong client base. On that foundation, I think, you can do pretty much anything. “We have made some real, positive changes, which have reinforced the solid foundation on which Premier Freight was
built 35 years ago,” Mr Ehrenreich adds. “We are now a proud full member of the Sasfin Group, which only adds value to our service proposition. We have a great team of inspired people I am proud to work with – and we see a future of sustainable profitable growth in a very competitive industry.” Mrs Ching adds, “We will continue to strive to be a Partner Beyond Expectations.” To the untrained eye, a freight forwarding and clearing business may look a little foreign in a financial services group but Sasfin Premier Logistics is now an integral component of the Sasfin service offering. “We specialise in freight forwarding, by sea, land or air, customs 48
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As part of our strategy we are also looking to expand into other African countries, which would also give the rest of the group new opportunities
clearing, distribution and warehousing, logistics and freight insurance but we are much more than just your normal freight company. We’re a company that prides itself on its high level of service and an ability to develop good relationships with customers based on mutual trust. Sasfin’s other services fit in neatly with what we have traditionally done, providing the financing tools to facilitate trade and adding to our offering. Through the group we are able to offer services such as trade and debtor finance, purchase of forex, foreign exchange risk management solutions, investigating the opportunity to tap into growth incentives such as the manufacturing
Sasfin Premier Logistics focus supply chain
incentive, rebate application and administration, import duty recovery, training, permit application and insurance only to mention a few. Nobody else has that and by providing the logistical infrastructure for any international trade in-house, we’re able to limit the risk faced in financing imports and exports. “It is a really strong offering.” Sasfin first bought a stake in the company after 60 percent shareholder insurance company Hollard sold its stake in 1998. It was the birth of a strategic tie-up that has strengthened significantly in the last year, and mutual benefits will come from this and only expand in the future. “We’ve redesigned our internal processes now around our customers and their requirements,” Ehrenreich says. “We’ve broken down silos and created team units that work a lot closer with each other to ensure positive outcomes and experiences. We’re much more than the typical forwarding company; we’re partners. “As part of our strategy we are also looking to expand into other African countries, which would also give the rest of the group new opportunities. Now that is a lot of work and it will not happen overnight but we’re ambitious. “We’re definitely hungry, our shareholder is as well, and we know critical mass is vital in our industry. However, we will only buy and / or expand organically when it makes sense for our business or can add value to our customers. We want sustainable growth.” END To learn more visit www.sasfinlogistics.com.
differently D are t o t h i n k
The Eikos Group has dared to think a little differently and the approach has worked says Chairman Dr Tony Valsamakis.
By Ian Armitage
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Eikos focus risk management
D
r Tony Valsamakis and his colleagues within the Eikos Group dare to think differently. They’re shrewd, aware that you have to innovate, adopt new strategies and become more adept and resilient with changing market forces. Tony is an internationally recognised risk management professional, with the reputation of being commercially innovative and technically astute. He also has a knack of making the right choice. “At Eikos we consider ourselves unique. Compared to our traditional counterparts we are distinctly different. We’ve a different structure, fresh approach, and we’ve a different scope of expertise and activity. We’re in the business of risk, not necessarily the business of insurance; we have well-developed, defined identification and evaluation processes to cater for most event-type risks that corporates face. We consult, yet we’re able to direct clients towards solutions and facilitate opportunities around clients’ risk mitigation needs.” Areas of expertise include strategic, financial, actuarial, insurance, IT, treasury and market risk analysis, underwriting and process management, he says.
“All these skills are applied to our general client base, and we have a particular focus and a dominant position both in consulting and insurance contexts in the transportation sector. “Our approach lends itself well to an association with a variety of players in the market – brokers, bankers and insurers.” According to Dr Valsamakis, Eikos is managed by a strong team of insurance and risk finance professionals with many years experience in the marine, transportation, risk management and insurance sector, both within South Africa and internationally. “Each has established individual reputations of high regard in their areas of expertise,” he says. “We’re an independent group of companies involved in risk, the business of risk, and its assessment, measurement and, importantly, management. We call our approach IRIS – Integrated Risk and Insurance Strategies. IRIS uses models to accurately simulate outcomes which provide critical decision making tools for the insurance buyer in structuring and pricing risk.” Tony established the Eikos Group – whose name derives from an Ancient Greek word which roughly translates as ‘all that is possible or probable’ – in 1999 and he
Dr Anthony Valsamakis
Our approach lends itself well to an association with a variety of players in the market – brokers, bankers and insurers
www.southafricamag.com 51
Eikos focus risk management
and his team have since been responsible for building a successful enterprise with clients around the world. The group consists of three specialist units: Eikos Risk Capital, Eikos Risk Applications and Group Risk Management Services. Each is autonomous “but we’re all conceptually fused together – a type of integrated diversity.” Eikos Risk Capital provides specialised risk financing solutions – things like insurance architecture and structuring, related feasibility studies and modelling, risk assessments, and insurance price setting – to an international client base. It is one of the few independent specialist alternative risk transfer, retention strategy and risk finance companies in the field, Dr Valsamakis says, and it has pioneered insurance cell structures in South Africa and abroad and developed statistical software that allows clients to spread insurance costs across a group of companies in a fair and objective manner. Eikos Risk Applications is a leading marine insurance broker, specialising in transportation and logistics risk consulting. It manages one of the largest marine broking portfolios in South Africa and is widely recognised as a unique risk services provider. Group Risk Management Services specialises in structuring and managing complex insurance programmes for large corporates. Clients include the Mutual Risk Group, which originates from the unbundling of the Barlows Group. “We’re certainly a unique proposition,” Dr Valsamakis says. And things are going well. “Absolutely. Of course the macro economic situation comes into play. I guess in the future it depends on the world economic scenario. Against the backdrop of a structural change, around 2008 moving to 2012/13, and the problems associated with the decline of the world economies and the impact of this on our 52
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Des Vernon
client base, we have been pretty pleased with the way we have performed. I think that there are underlying changes that are redefining how we move forward, specifically in Europe. In a way, on a macro level, we have to trade through a period of phenomenal change – real change as opposed to just vagaries of the cycle, which are more short-term. Of course, we face the same sort of cost and revenue pressure that any other company would face and in our case we have to be careful about making sure that we do not allow this trend to upset the equilibrium within our company.” And how would he like to see the business develop? “A top priority now, as a Group, would be to increase the return to risk ratio. I guess it’s about balancing adequate return for what we deliver, against costs, which are always under pressure. I would like to see the Group pursue a profitable efficiency for the benefit of our clients and getting to ‘best of breed’ status. Looking forward, I’m very keen to see our concept get some scaleability – our value proposition is clear-cut, succinct and
Eikos focus risk management
Etana Etana is South Africa’s largest dedicated business insurer only through brokers. Our personalised method of doing business - exclusively through brokers - makes use of handshakes and face-toface conversations to find ways of tailoring our insurance products to fit the precise needs of your business. With Etana’s products you pay only for the cover you need. We also understand the long-term value of giving brokers genuine specialist back-up as well as the very best risk assessment and management.
Hugh Reimers
Eikos Risk Applications is the leading independent marine insurance brokerage in South Africa. Our clients range from large and small providers of supply chain services
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To find out about our product offering and more about Etana, visit us online at www.etana.co.za
has been very well received by corporate clients. It would be great to see us extend our influence and footprint.” Hugh Reimers is managing director of Eikos Risk Applications and he has similar growth ambitions. “Eikos Risk Applications is the leading independent marine insurance brokerage in South Africa,” he says. “Our clients range from large and small providers of supply chain services such as clearing and forwarding agents, warehousing and distribution operators etc., to large industrial manufacturing groups all the way down to the small importers and exporters. We handle goods being moved by any and all modes of shipment and ranging from raw materials to finished goods to perishable products such as fruit and HIV medication.” Eikos Risk Applications has focused strongly on developing products for the freight and transportation sector, which deal with the exposures affecting both the cargo owner and the service providers in the supply chain.
“We believe that we offer the most professional broking option in the country in terms of the level of skilled people that we have within our business,” says Reimers. “We’ve carefully selected people of a high calibre who have a good understanding of the supply chain sector, marine insurance and risk finance, which is an important part of our value proposition. We believe that our differentiator is just that – primarily the level of skill that we have within our business compared to our competitors, supplemented by the systems that we have within our organisation and the relationships that we’ve developed with insurers who have grown with us in this sector and who have also developed a sound understanding of our strategy and target markets. These relationships and skillsets have enabled us to develop superior products with faster
Contact: Sue Wood Tel: (011) 822-4111 Fax: (011) 822 4222 Email: sue@cargocare.co.za Website: www.cargocare.co.za
ON TIME - AS PROMISED - AS QUOTED
Experienced agent of Imports, Exports and Road Freight · Voted a 2008 Top 300 empowered company · A level 2 Black Empowered Certified agency offering you 125% procurement recognition · An ISO 9001 (2008) Dekra European standard company · A network of offices in 40 countries · Guaranteed Services – same day as flight arrival delivery – Airfreight · Total accessibility to management · Very high level communication · One central point for all your ocean, air, import or export requirements · Full logistics capabilities · CAA Part 108 certified
turnaround times, wider cover and competitive rating which ultimately brings tremendous benefit to the end user or consumer of our products – the cargo owner.” The advantage to the cargo owner of the freight forwarder facilitating his cargo insurance transaction is the convenience of dealing with one party for all of supply chain needs, including insurance. “In terms of where we go as a company in the future, I think we’re reaching a level of saturation that makes it difficult to continue growing at the same rate as we have until now. We therefore have to look at different ways to grow the business. I think what we’ve done quite well is to find a niche and have developed the people and products which have allowed us to dominate in that sector. “There are other specialist areas of insurance out there that we could potentially look at. Obviously we want to keep doing what we’re doing and there’s still a fair amount of work to be done in our own space. Expanding our insurance offering direct to cargo owners is an area we want to focus a little bit more on for instance. There will always be large corporates that won’t want to place their insurances through a freight operator facility and that’s the area that we really want to target. We firmly believe that we offer ‘best of breed’ marine and transportation insurance solutions to the cargo owner ultimately and our challenge right now is to be front of mind for anyone looking for these solutions, be it through their freight operator or direct if that is what the cargo owner prefers.” 56
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Louis Ferreira
By pooling your risks, the bigger you are the less the cost and the wider the covers can be. We have demonstrated repeatedly that the overall total cost of risk is probably between 15-30 percent cheaper than what you can achieve by unbundling it and standing alone for each of the participants
Eikos focus risk management
The growth bug has caught on with Group Risk Management Services as well. Des Vernon, managing director, and director Louis Ferreira are certainly looking at it. In their case, it is perhaps more challenging - Group Risk Management Services specialises in the structuring and management of complex insurance programmes for large corporates and deals with the risk financing and risk control requirements in these programmes. “There are several ways we can grow,” says Vernon. “For existing insurance pools, in addition to normal growth, it would be a case of finding new participants who share the same work ethics and subscribe to the same risk management principles. Secondly, we can create a replica of what already exists and form a new pool. Finally we can offer risk management services to clients outside of the existing pools. This is already being done. We join your team and we work with you as part of your risk management structures. We’re not external consultants charging you enormous fees.”
In a tough operating environment Group Risk Management Services has performed well. “We deliver a unique service, through a really experienced team in a market where expertise is often lacking. We have a reputation for being reliable, trustworthy and innovative in the outcome and our response. We are able to tailor make our response to your needs rather than delivering something that is not required. I think also our personal relationships and knowledge of our clients’ businesses adds to the success of our service delivery.” “By pooling your risks, the bigger you are the less the cost and the wider the covers can be,” Mr Ferreira adds. “We have demonstrated repeatedly that the overall total cost of risk is probably between 15-30 percent cheaper than what you can achieve by unbundling it and standing alone for each of the participants.” These are exciting times for Eikos Group. END To learn more visit www.eikosgroup.com. www.southafricamag.com 57
Connective
i ntell i g en c e and t h e r o ad t o E X P A N S IO N
Business Connexion’s Rodwell Zvarayi and Eric Stokes on ‘connective intelligence’, an award winning mobile app and plans to expand.
By Ian Armitage 58
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Business Connexion focus TECHNOLOGY
B
usiness Connexion is a company that we at South Africa magazine have come to know well. You might remember in our September issue we talked with TransUnion Credit Bureau’s CEO Geoff Miller. Mr Miller talked about a whole host of issues, including the rise in unsecured credit. He also talked at length about a new, award winning and innovative mobile app the firm developed with Business Connexion’s help. “It allows dealers to punch in a registration or VIN number and find out information about that vehicle instantly. We will be extending this service directly to consumers in the near future,” Miller said. The Dealer’s Guide app provides subscribed dealers with practically instant information about specific passenger and commercial vehicles, as well as motorbikes, giving them the information they need to make an informed buying or selling decision anytime, anywhere. Eric Stokes, Business Connexion’s business unit manager for mobile services, is delighted with it. “It is a great app,” he says. “It tells you what a car of any make, model, age and mileage is worth. It also lets
At Business Connexion we have enjoyed a long history of success with a keen focus on innovation
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Business Connexion fOCus TEchNoLogy
you look up a vehicle by its number plate to see if it’s been stolen, been to the panel beaters, or has had it’s mileage tampered with.” A consumer version is available, with the first vehicle check for free. Thereafter a user can top up their account as and when needed. The software works on almost all handsets, whether it’s an iPhone, Blackberry, or uses the Window’s operating system or Android. “We have a long relationship with TransUnion,” says Stokes. “We partnered to develop this application that could leverage their information and make it accessible from anywhere. “It was originally for dealers, but we’ve decided to make it available to consumers too. “Consumers are empowered by this. It gives them knowledge and negotiating power. The same goes for dealers. It is a great tool.” Business Connexion describes itself as a “black empowered integrator of innovative business solutions based on information and communications technology” and its motto is ‘connective intelligence’. Customers include JSE-listed and key public sector organisations, parastatals and mediumsized companies. Innovation is its “key differentiator”. “At Business Connexion we have enjoyed a long 60
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Business Connexion focus technology
history of success with a keen focus on innovation,” says group executive for international, Rodwell Zvarayi. “Our ethos is ‘connective intelligence’ and it underpins the very essence of our approach. Why? Well when it comes to operating in a market that is more competitive than ever, we always strive to distinguish ourselves from the competition, connecting the world in a distinctive manner. Our unique business model represents our approach to configuring and integrating business solutions. Our solutions are designed to meet our clients’ strategic and operational needs, which we develop.” The firm’s mission, he says, is to provide increasingly simple, content-rich and affordable solutions to Africa and the world. “We are Africa’s leading ICT services provider, renowned for high quality, high performance solutions. We are committed to delivering world-class services and solutions.” According to Zvarayi, the way in which businesses use technology is rapidly changing - driven by the pace of innovation inherent in the ICT industry. 62
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He says Business Connexion is an integral part of that change. “We were ready for cloud computing when we opened the Midrand data centre in 2006. Today, cloud computing is the preferred model for rapid response, high-value and low-overhead ICT solutions, changing the face of doing business. “In an environment like Africa where change and cost consciousness is critical, we deliver at low cost with rapid results. “And importantly, which the TransUnion example shows, we are leaders in application development, data centre services and IT outsourcing.” Africa is Business Connexion’s “next frontier”. It is where growth will come from. “The global economy has undergone a paradigm shift which has impacted the way we all do business. It is therefore imperative for us to identify business challenges specific to our region and then provide ICT solutions to assist our clients in overcoming them. Most companies are facing challenges as their capital expenditure budgets have been cut. We believe that with our cloud solutions we
JHB 39448
Business Connexion focus technology
As a business we have a great deal of achievements
are able to assist many organisations deploy their solutions. “In Africa we are seeing convergence between IT and telecommunications, bandwidth is now available and we see mobile applications as key. We think consolidation will continue in many of the traditional markets and our focus is on growing our African footprint. Africa is the next growth frontier – east coast, west coast and southern Africa are very important to us. Seven of the ten high growth countries in the world are in Africa. We are seeing good governance in countries like Ghana and Zambia. “As a business we have a great deal of achievements to share including our rise in profit, our returns from our African expansion – we have offices in SA, Namibia, Zambia, Kenya, Nigeria and Tanzania, and locally the partnership with Rackspace in cloud computing, our recognition in the area of energy efficiency, and our investment in industrial solutions, as well as application development capabilities.” 64
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What is the secret to Business Connexion’s success? Threefold: Strong management, proven solutions and a clear vision for the delivery of ICT services that “create unprecedented results”. “Even as we continue to scour the market for merger and acquisition targets, we have a sharp focus on customer value – going beyond all expectations,” Zvarayi concludes. “As IT products and services are increasingly becoming commoditised, we’re giving more focus to developing differentiated solutions that leverage our own IP. Our existing range of propriety solutions is being extended to provide greater business value in specific sectors – retail, mining, supply chain, oil and gas, financial services and the public sector. Ultimately these vertical solutions will cater for simplified access in select African markets.” To learn more visit www.bcx.co.za.
Blueprint for Success The pressure to innovate is accelerating. To meet the challenge IBM is partnering for innovation more aggressively, but also tackling more challenging and disruptive types of innovation. Instead of just helping partners to help their clients to create new products or implement more efficient operations, IBM’s pursuing more disruptive types of innovation to build a Smarter Planet. According to Asif Valley, Business Partner Organisation Executive at IBM South Africa , “Building a rich and diverse partner ecosystem is central to driving high-growth areas of the business technology marketplace as well as a key source of competitive advantage for IBM.” “At the heart of this ecosystem is our relationship with approximately 300 Business Partners, including consultants, integrators, software vendors, value-added resellers and distributors. The strategic alliances that IBM has struck with leading solutions partners is a key reason that IBM software brands have surged into leadership positions in key segments.” Approximately 30 percent of total IBM revenue comes from IBM Business Partners and IBM Business Partner relationships account for more than half of its small and midsize business practice. Valley says that working with partners they are responding to clients needs to: Turn information into insight The need to organise, store and mine the information scattered throughout an organisation; spot hidden trends before they occur; predict outcomes in weather forecasting, transportation scheduling, financial performance and more; and provide customised intelligence designed to gain faster insight and return on investment from all the different data is growing. “IBM has taken aggressive steps to remix its business so that it is positioned for leadership in the high-growth business analytics space.” says Valley. “The combination of our middleware and consulting expertise makes IBM well suited to help partners help clients extract new value from their business information and respond at the same rate at which the data arrives.”
Help Cities Work Smarter Technological advances have opened the door for a new order of intelligent infrastructure inside our cities. In city buildings, thousands of wireless sensors monitor everything from motion, temperature and humidity to precipitation, occupancy and light. Sensors, meters and radio frequency identification (RFID) tags are being embedded in cars, roads, pipelines—even the wheels on a train. “Our analytics tools sift through the collected information to help cities respond in real time to changing conditions and keep everything running more safely and efficiently.” says Valley. And with offerings like an intelligent command centers, cities can manage their IT and data centers as well as physical assets such as water mains, office equipment, heating systems and fire hydrants. Connect with the customer What used to be seen as a flow of goods from manufacturers through a distribution chain to customers has become an interactive feedback loop, where consumers, producers, distributors, the media and marketers all have new roles to play. “Smart companies see selling not so much as a traditional function of their organisation but rather as an ever evolving set of services they perform for their customers.” says Valley. In 2010 IBM added to its own IBM WebSphere® Commerce software platform with three acquisitions in Sterling Commerce, for order management and supply chain optimization; Coremetrics, for analysing customer behavior; and Unica, for comprehensively managing marketing campaigns. “Today this means that we can offer partners the leverage points that these powerful software tools and services provide to help clients better address the connected consumer.” “The kind of innovation needed to build a Smarter Planet happens in collaboration with strategic partners who help bring together the business insight and technology to give the client a distinct advantage in today’s rapidly changing environment.” adds Valley. It seems that with collaboration, strategies become actions and everything gets smarter.
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Company Proname Roof fOCus fOCus ??????? METALS
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volum quunt hilit plaut hictur sintia volore conecte mporro hile entrepreneurs modipsae prendem ad rehenie nduciant. come in all shapes Pro Roofmagnis steelipid ma volupta vit ea Evellaudae sin essitincte and sizes, one Merchants has exces grown eatemodite aute cus pror asi tempor aute commonality binds sitio officiet peria consendus earibeatis recae. beginnings them all together: the willingness to from humble todelessum etur si doluptasit venimporro Ut pel inias auta ipienim quo take a risk. become one ofessi the largest cor maior rerro tetus. A man that knows a thing or two and most prominent maiorrum rehenem quide about that is Rafik Mohammed. Soluptasi delesto Aged just 11, Rafik might not TuR REPELENDAES steel merchants in the et dolupicipsam sim have realised the extent of his SAMET ET Africa. dolorro es rem quientrepreneurial spirit as he sold REPERIBuS. Southernquam odictur, nem quam eiumfresh produce from door to door , ute ped et doluptas id explistrum sedit porest, in the small farming town of Brits, voluptam, quodit, unt dolest, By ian Armitage ulparchicae. Leseque but some years later his passion et andionempel ipitent aut pliscias quia nimolent utfor int,business led to South Africa’s aut laborepe ne voloruptio ullacep ernatque volendit major independent steel merchant blab imus endipsam re ???????? undipienim nobit vero company – Pro Roof. His strong vollibea nosam fuga. Name tentibusa as quibus et ute core beliefs in hard work, valuing volorum, ilis es eictota non consed quis dignim es his employees, and maintaining his eserios aut quassimi, tem iuntota tesequia corem nos personal honour in all things, as well faciam qui officit aute si cusandit et alit ad quoas et,the odd calculated risk, have come poribusdam, quatem quas to define this industry leader. mo temquiate voleni doluptae ommodio etus, conet abo. Sequae non estinti dendemDay by day this enthusiastic ilibus, nim veniscienem es et lacearit est unto etentrepreneur illab reminds his staff that eos qui sectatur molupta iuntiat usaped et fuga. Icab money will be made and money will spernam nobit et quatquis ipiendi eND be lost, but stresses that once their aces modit aut inimaxim ut name or reputation is lost, they lose eicilli tiones inctatiis nimod much more. evellaut oditatum imus “I empower people,” says Rafik. sinum, omnis dollit quae “Without the people, there would eius sequasp ersperit, oditia be no company. We allow them ius et min reictotas dolesci the space they need to succeed. atur aliant voluptatis aut You delegate to people, you don’t aces ipidem accuptatur si undermine them and you give them occabore dolo et ut assed mi, opportunities to be able to prove in rerum nulla num il et odit, what they are worth. But we stress sincitiate moluptate ditas that our name and reputation is nullest voluptati con cores everything and we deliver.” et volorpore restius et es Pro Roof Steel Merchants is known explate ctiaern atemposania for manufacturing and distributing a pe veribus dolla nobis site variety of steel products, most notably nonsediam faciatenis sin roofing solutions. pa con pellut utet aut qui It’s great strength is its diversity. offictum coriore ruptati qui “Pro Roof Steel is one of the volenie nderum atet aut largest, most prominent steel auditaessus vere, quam, merchants in Southern Africa, being consed earchil iquibus,
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Company Pro Roof focus name focus metals ???????
Van Flymen and Associates The Pro Roof & van Flymen relationship had its origins in the 1980’s when Pro Roof founder Rafik Mohammed and van Flymen director Clive Cohen met. At that time the business of Pro Roof was housed in modest rented premises in Vereeniging and the ambition and drive that has marked Rafik’s success was already apparent and a relationship forged on mutual trust commenced.
a key player the steel industry,” Rafik says. “From a roofing company, we expanded into a wide array of steel products commonly used in our main operating markets like welded universal columns and beams, fencing and wire, tubing and cold formed as well as roofing solutions.” Pro Roof’s processing and servicing centres headquartered in Vereeniging employ 700 people and regional branches in Cape Town, Pretoria, Durban and Nelspruit create a network and infrastructure to supply the demand of the growing South African economy. Monthly production has been as high as 15,000 tonnes a month. Unsurprisingly, Rafik was a finalist in the 2009 Ernst and Young’s World Entrepreneur Awards, South African Best Entrepreneur category. 68
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Twenty years on, and from those modest beginnings, the Pro Roof growth has been spectacular. What has not changed is the same foundation of trust on which the personal and now company relationship was created. We at van Flymen are proud to be entrusted with both their risk management and insurance placement requirements. The relationship allows the Group to embark on growth of their existing business and to consider new projects with the knowledge that their insurance is in the hands of professionals with the necessary skills and the commitment to personal service.
Company Pro Roof focus name focus metals ???????
Investors took notice and in 2011, JSE-listed Andulela Investment Holding Limited, acquired shareholding in the group. “In line with managements strategy the investment in Pro Roof has been identified as a suitable investment for Andulela,” the company said. “We see our steel side going further downstream,” Rafik explains. “Over the coming years open new retail outlets nationally, and through that network sell our entire basket of products.” Diversification is pursued outside as well as within the steel sector, he says. “The year so far has been a challenging one,” Rafik adds. “It’s not what we expected but also better 70
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It’s all about hard work, commitment, and integrity. Our growth has come about through honour
then when I look at what the industry is doing but it’s tough. It’s very tough. “Locally we’ve had the mining strikes and also transport strikes and we lost three weeks of production and deliveries to customers. The wildcat strikes have definitely had an impact over the last few months and it has it has affected our plans because we couldn’t receive from our suppliers nor could we deliver to our customers.” Good job Rafik has fingers in a few pies. One such pie is property through a property division called Changing Tides. “The property management and development side, which I introduced in 1998 by
creating the Changing Tides property division, is doing very well. That has been much better. Quite active, more on the affordable homes, but also on the industrial side we have had a bit of activity there also.” Changing Tides focuses on industrial, residential and commercial property, including affordable housing and student accommodation. Attention to detail and high building standards set Changing Tides apart from its competitors, as it continues to gain market share. “In all areas of our business we are able to react to trends and opportunities, which our competition can’t always do,” says Rafik. The lasting impression is that Pro Roof is a group committed to growth with a determination to succeed. “It’s extremely fierce business. This is not an easy industry and the challenges can be great,” Rafik says. “But we are confident.” He is sure Africa will be the global centre and driving force for opportunity and future success.
“With our exchange rate as it is we can see it to becoming a reality in terms of growth out of our neighbouring countries, especially on the steel side. The guys are starting to give us a lot more business than in the past. The exchange rate has a big role to play in our export market. When the rand is strong, we lose our market and when the rand weakens we pick up the business again.” Despite recent challenges and setbacks following the strikes that have plagued South Africa, the growth plan for Pro Roof is unambiguous. “If we size our selves up to our competitors then our ambition is to be among the three biggest industry players in South Africa. It’s all about hard work, commitment, and integrity. Our growth has come about through honour. What’s most important is one’s credibility and this is the fundamental principle in my business.” END To learn more visit www.proroof.co.za. www.southafricamag.com 71
Generating
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Marthinusen & Coutts focus Maintenance & Repair
With eyes on expanding further into Africa, Marthinusen & Coutts’ marketing and commercial executive Mike Chamberlain talks to South Africa magazine.
By Ian Armitage
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arthinusen & Coutts (M&C) has been in operation since 1954 and is a leading repairer of high-voltage motors in sub
Saharan Africa. The company, which also manufactures customised electric motors and components, is a division of ACTOM (pty) Ltd. Marketing and commercial executive Mike Chamberlain describes the firm as “a leader in the repair and maintenance of your rotating electrical assets throughout Africa”. “We’re a leader, certainly,” he says. “The ideal service partner.” The company boasts ISO 9001 2008 certification, as well as a host of other quality assurances, and has extensive workshops in Cleveland, Benoni, Rustenburg, and Welkom in South Africa, and in Kitwe, Zambia. It also agent agreements and partners with workshops in Zimbabwe, Botswana, the DRC, Mozambique, Malawi, Nigeria, Namibia and Ghana. Key services include the repair of electric motors and transformers, specialised manufacture, coil manufacture, wire drawing and covering, and mechanical repair capability. The product range includes high-voltage ac motors, low-voltage ac motors, traction motors, flameproof motors and power generators of up to 50 MVA. “Productivity depends on minimising downtime and improving efficiency, and we are the ideal partner in achieving that goal,” says Mr Chamberlain. “The last 12 months have been tough, but we’ve managed to maintain our growth thanks largely to work outside of South Africa. It has come at a welcome time especially with domestic strikes.” Recent strikes in the mining sector have taken a toll and the costs will likely mount up, he explains. “With decreased turnover there is a decrease in the number of machines www.southafricamag.com 73
operating. We are an aftermarket maintenance company of electric motors, generators and transformers and if they’re not operating then there aren’t as many breakdowns or repairs required. With the mines shut, the machines aren’t working and it’s definitely been a problem for us, especially when half the client base is either cutting or ceasing production.” In 2001 the firm successfully acquired a rotating machinery repair facility in Zambia, which it now operates. According to Chamberlain, it is the “largest electro-mechanical repair workshop on the Zambian and DRC copperbelt”. He says it was opened because of an “ever-increasing demand” for M&C’s services in the region. “Zambia and DRC are set to boom, especially in terms of copper mining. Many new projects and mines have come on board with many more plans in the future. That’s why we purchased an engineering shop and now we’re investing in building it up and investing in capital and people in the Zambian operation. We are also performing extensive work in the rest of Africa the Middle East and Asia. We’re looking at investing in a workshop in the DRC as we’re doing a lot of work there already, and other locations in Sub Saharan Africa. “ With the company’s permanent presence in Zambia, customers will not have to send rotating machinery and transformers across the border to South Africa for repair. The operation was set up by taking-over an existing rotating machinery repair operation in Kitwe. 74
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“We’ve made a significant investment in the operation there, upgrading the workshop and bringing it up to international standard,” says Chamberlain. New equipment added to the workshop includes a balancing machine, core tester, a 250 tonne press, a banding machine, a Baker pressure tester, a new lathe and a screw compressor. Further investments will be made in a milling machine, more lathes, a burn off oven and a submerged arc welding facility. “Zambia has a large installed base of electric motors and it’s expanding so that’s the main reason for our wanting a presence there,” says Chamberlain. “We’ll go wherever there are large quantities of electric motors and transformers.It’s not just in Zambia because others, such as the DRC and Mozambique, are growing too. “Power generation is a big, growing area, not only in South Africa but worldwide.
Marthinusen & Coutts focus Maintenance & Repair
Independent power producers are emerging and businesses have been investing in their own generation, across sub Saharan Africa. We do work in the Middle East, Pakistan, and Indonesia also. A lot of that work is done onsite due to the size of the equipment and we would go and do refurbishment projects on old power stations and get them working again.” As an aftermarket service company, M&C is a success because it focuses on customer requirements ensuring a quality repair in the quickest posible turnaround time. This is achieved through continuous training of its high skilled and experienced team, having the best equipped and technically advanced workshops. “Our success comes down to a number of things,” says Chamberlain. “Your people and your skills are very important. We’re also an aftermarket service company, with a flexible approach that focuses on the customers’ needs. Our guys are trained to listen and find a solution that suits. We build relationships of trust and this is very important as we repair critical equipment where breakdowns are very costly. We have to continuously train our people and work hard to continue to grow and satisfy demand. “We’ve had to diversify our product range and we’re continuously upgrading our technology. We’ve just invested in some big capital equipment such as 32 tonne balancing machine, new C&C lathes and a new burn off oven. You have to keep moving because if you get complacent the competition catches up. We want to remain the market leaders.” END M&C has revamped its website. Be sure to visit www.mandc.co.za
We’re also an aftermarket service company, with a flexible approach that focuses on the customers’ needs
L & R Mining Services has been registered since 1991 and has been providing excellent service in a variety of fields to the mining industry. We have gone beyond the borders of South Africa and fabricated ventilation and material handling systems for mines in Botswana, Zambia, and Zimbabwe and abroad for Australia and New Zealand.
On behalf of L&R Mining Services we would like to thank Marthinusen & Coutts for their support throughout the years. Rob Landsman rob@landrminingservices.co.za Cell: 083 282 4089
Tristyn Landsman tristyn@landrminingservices.co.za Office: 011 818 5798
S tr u c t u rall y
S o u nd
South Africa Magazine profiles consulting engineering firm Anderson Vogt Consulting.
By Ian Armitage
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Anderson Vogt Consulting focus engineering
A
nderson Vogt Consulting, a division of Engineering Design and Training, is a consulting Engineering firm well known for civil, structural, and geotechnical work, with offices in Dundee, Durban, Edenvale, Mtubatuba, and Pietermaritzburg. According to Ed Anderson, Principal Engineer, the company has built its reputation on an ethos of thinking “outside the box”. “The consulting firm Anderson Vogt and Partners, established in 1955, recognised that there was need for young engineering professionals, coming from a previously disadvantaged background, to enter into a consulting practice,” he says. “Engineering Design and Training (EDT) was founded to cater for this need. It did not take long to recognise that the young firm, with an unknown name and perceived unknown track record, was at a disadvantage. It was at this point that Anderson Vogt Consulting (AVC), as a division of AVP, was brought into being.” From its beginnings of being involved in small community-based labour intensive projects, the firm has, over time, grown, acquiring the necessary knowledge, expertise, experience, and confidence to take on the design and management of more complex civil and structural engineering projects. In this regard AVC has been taking over the reins from AVP in the last number of years. “AVC has been involved in some diverse and interesting projects,” Mr Anderson says. “The structural design work for the curved video display on the Radisson Hotel at the corner of Rivonia Road and West Street in Sandton was one such project. The videoscreen is made up of modular panels and the structure stands some seven metres high and 12 metres wide. We’ve also done structural inspections and strengthening design on numerous communication towers and masts for various clients. The design and project monitoring of the ground
Eskom’s Matimba Tower (2009)
stabilisation required at the Olifantsfontein water tower and reservoir complex for the Ekurhuleni Metropolitan Municipality was another of our projects.” Other projects include design work for a weir in the Suikerbosch River for Karan Beef and AVC is currently busy with the detailed design of the New Pentecostal Church’s Cathedral in Yoeville, Johannesburg. The impressive structure will have a seating capacity of 10,000 on completion, Mr Anderson says. The firm’s flagship project is the building of the new regional hospital at Edendale, near Pietermaritzburg, which includes the renovation of the district hospital on the same site. Mr Anderson is lead structural engineer and AVC plays a prominent role in the joint venture with two other structural engineering consultancies, Indonsa Projects and Young and Satharia Consulting Civil and Structural Engineers. www.southafricamag.com 77
Artist’s Impression of the Edendale Hospital
“The Edendale Hospital, a well-recognised post-graduate teaching hospital, was originally established in the 1950s and was closely linked with the nearby Grey’s and Northdale Hospitals,” Mr Anderson says. “The district hospital currently has a capacity of 900 beds. When the current project has been completed, the capacity of the district hospital will be reduced to 800 beds with the new regional hospital also having a capacity of 800 beds.” The estimated cost for the complete project is R2.6 Billion, of which the structural component comprises about 30 percent. “Our out of the box ethos was critical in getting involved on this,” Mr Anderson adds. “An Engineer from the Department of Health contacted me and told me that he had a dilemma on his hands. Essentially, the Edendale Hospital had been condemned with the recommendation that it needed to be demolished. He wondered if I could I give a second opinion? On inspecting the structure I found that, yes, there were some structural problems but these could be repaired, at 78
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a cost substantially lower than demolition and rebuilding. These repairs were carried out, and the building is still carrying out its function of serving the local community. I feel that the loss of this hospital would definitely have had an adverse effect on the local community. “Although engineering is a science, it is also dependent on human judgement. Unfortunately the human judgement lets us down and errors in judgement are made and then failures do occur. In recent years I have been requested by the Engineering Council of South Africa (ECSA) to investigate some of these failures. We, as engineers, design structures which will be used by others and the safety of the user is critical. The need to investigate any failure is of utmost importance. The end result of these investigations has to be putting measures in place to reduce the risk of a similar failure occurring again. I must add that in doing these investigations, our engineers at AVC have become more vigilant to the possibility of errors causing
Anderson Vogt Consulting focus engineering
failures resulting in high degree of care being taken in their design and in their checking a colleague’s design.” AVC is living proof that with the right mindset, you can overcome any obstacle. “As to the business climate,” Mr Anderson continues, “we have anticipated a severe recession, and as a result been very conservative with expenditure and have even managed to build up some reserves. Fortunately the recession has not hit as hard as we expected. We have done very well, exceptionally well this year. There are a few reasons for this. First, the work at the Edendale hospital. Then, we were able to get some interesting work from the Kwa-Zulu Natal Department of Transport, for which we did extensive bridge inspections and some road design. The Edenvale branch has a number of projects with the Ekurhuleni Metropolitan Municipality, among others the Kwa-Thema Fire Station and the Etwatwa Township Development. We have also taken on numerous small projects such as the structural design required by people building themselves a new home or even just wanting to extend their existing home. I think that the size of the firm puts us at a great advantage, as it allows us to tackle big projects by pooling the expertise of the different offices but still being small enough to give a home owner the personal touch that they require in building or renovating a home.” The future for AVC is bright. The firm is currently looking into the renewable energy sector, which has great potential for the future.
“We have also completed the prefeasibility studies for some major projects in Madagascar, these have been placed on hold due the current political climate but will be ready to move forward once the situation has stabilised,” Mr Anderson concludes. “The secret behind Anderson Vogt’s success is very simple. It is good service, which includes giving sound advice. Good service will bring repeat business from the larger corporate type client, and new business from the smaller home owner type client because they will relate their experience by word-of-mouth to friends and family.” END To learn more visit www.engdt.co.za.
ISELEKELELO
PROJECT MANAGERS QUANTITY SURVEYORS
Block A, Mtuba Office Park 107 Kiepersol Drive Mtubatuba, 3935
Tel: (035) 550 3905 Fax: (035) 550 2934 Email: info@iselekelelo.co.za
bet! you
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Betting World fOCus BETTiNg & gAMiNg
it’s as easy as 1, 2, 3…
By ian Armitage
B
etting World is one of South Africa’s premier bookmaking operations and a wholly owned subsidiary of JSE listed, Phumelela Gaming and Leisure Limited. If you enjoy a bit of a flutter, this is the place to go. It offers its customers a wide range of horse racing and sports betting products and services, via its national retail footprint, regional call centres and online betting platforms. “We offer the opportunity to bet on a number of sports,” says Betting World managing director Michael Weare. “Whilst horse racing is a big part of our business, recent growth has been in sports betting, with soccer betting in particular showing large growth.” English and European soccer fixtures in particular are very popular and Betting World offers pre-match betting on every match as well as live “in-running” betting on every match televised on South African TV. Its website and mobile betting platforms provide customers with odds and allows them to bet on horse racing meetings from all over the world, as well as on major sports including soccer, rugby, cricket, tennis, golf, motorsport and boxing. “Going forward we believe that our growth lies in expanding our retail footprint and diversification into other betting products and services,” says Mr Weare. “We launched a brand two years ago called Soccer World and have subsequently also launched Cricket World and Rugby World. Our Soccer World website and retail outlets are targeted at soccer betting enthusiasts and aim to provide them with all the information which they require, including exclusive match previews by local soccer celebrities. www.southafricamag.com 81
We’re growing all the time and our online betting in particular is growing year-on-year... That is something we’re looking to continue growing as well as our physical footprint
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“We’ve begun rolling out Soccer World outlets nationwide, with the initial outlets having been opened in Johannesburg and Cape Town, with more to follow in Durban. The new soccer orientated outlets are much larger than the traditional horse racing outlets and are located in and around the rim of the CBD. As the majority of our soccer betting customers look for value by taking large multiple bets, with between eight and 22 selections (teams), the number of operators and the use of technology in these outlets is ensuring a high level of customer service and business efficiency. Customers elect to take these large multiple bets as for a small out lay, they stand a chance of winning a large payout. “We’re also working with service providers such as Betradar in an effort to increase our sports betting products and services. Betradar are a leading European supplier of sporting events and related betting data, and have become quite well known locally. We have been working closely with Betradar and our wagering system supplier on integrated feeds which will allow us to focus on managing risk whilst at the same time providing a far larger product offering to our customers.” The launch of these products is expected to boost Betting World’s online business. “Our financial year ended in July and we had a good year with substantial growth on the previous few years,” says Weare. “We’re growing all the time and our online betting in particular is growing year-on-year and I think that most of our growth from online is on the sports side as opposed to the racing side. That is something we’re looking to continue growing as well as our physical footprint. “Gambling and betting is controlled in South Africa, regionally by provincial gambling boards. This means that we have to apply to all the different provinces independently so as to operate in their regions. We are looking to expand our retail footprint in terms of licensed premises and at the moment we have about 28 applications being processed
Betting World focus BETTING & GAMING
by various gambling boards. Our largest retail footprint is currently in Gauteng, around Johannesburg and Pretoria, with the second largest retail footprint in the Western Cape around Cape Town. This is not necessarily by choice but because of a complicated regulatory environment. As a result of previous legislation, we had a long wait before being allowed to apply to operate in KwaZulu-Natal. We’re busy with an application at present and aim to expand into this province as soon as possible. “Our business strategy is to establish a sizeable footprint of retail shops in South Africa. I think fairly soon we should have about 75-78 shops, and we aim to reach 100 in the next few years. I believe for South Africa and the size of the market that this will offer sufficient coverage. Betting World and Mr Weare’s plans are ambitious. END
Brad Thomas- Regional Manager: Fixed Line Services (L) 082 277 3677 (C) 082 998 1161 (E) Brad.Thomas@vodacom.co.za
Will Heygate - Regional Manager: Storage Technology Services (L) 082 277 3677 (C) 082 998 1161 (E) Brad.Thomas@vodacom.co.za
To learn more visit www.bettingworld.co.za
ThE coMpETiTioN LEFT
trailing…
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top trailers fOCus MANuFAcTuRiNg
top trailers’ National Sales and Marketing Manager William Mathee talks to South Africa Magazine.
By ian Armitage
t
op Trailers is one of the largest trailer manufacturers in South Africa and its website says it offers a “product range tailor made for the need of every customer”. It adds that, apart from manufacturing trailers, it offers “clients excellent aftersale services by servicing and repairing trailers”, while selling “used trailers” and “renting out trailers”. “The fact that we also offer our clients 24-hour road-side assistance in case of a breakdown ensures that we offer the best after sale service in the country,” it says. Top Trailers has three factories, two in Johannesburg and one in Cape Town, as well as a repair depot (which can also build new units) in Middleburg and repair operations in Heidelberg and Richards Bay. It has a sales representative in Namibia too and continues to expand. It is not a surprise to learn the company motto: ‘The sky is not the limit’. I asked National Sales and Marketing Manager William Mathee how he thinks the business is performing in, this, it’s tenth year, and what’s being planned for the future. William, ten years in; what do you make of that? While I’ve been here for just three of those, it is a fantastic achievement. If you look at our designs, every year we focus on new innovations to improve the quality of all our products. One example is the side tipper range, which we are continually updating and innovating. Every new design is a highlight and we intend to do that on an ongoing basis. www.southafricamag.com 85
Top Trailers focus manufacturing
The newest design is the Swingbin you launched last November. Has that been well received? It has done very well. We launched that at the Johannesburg International Motor Show and the main difference between the Swingbin and a side tipper is the safety aspect. With the Swingbin the centre of gravity remains in the middle of the trailer, making it more stable. The bottom basically falls out so it offers a lot more stability. With the Swingbin no tipping takes place, your bottom falls out and the top rises. It is like a mouth that opens. As I said, it has been well received by the market, particularly the bigger players in the industry who have embraced the trend. We produce the Swingbin on its own production line. The smaller market players still perhaps favour the side tippers but we have seen a move to the Swingbin. Demand is certainly there and it is really picking up. 86
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A lot of what you do is tailor made. How does that work exactly? Customers come to us with a unique set of requirements in terms of transport, the terrain, the quality of the roads and the required payload, etc. After we’ve got the basic idea, we will design a trailer. That’s actually how the Swingbin was born. So, ideas can start with a customer and we will follow them through. You joined Top Trailers three years ago from Absa bank. That was quite a change? Yes, funnily enough I worked for Absa for 19 years and Top Trailers was one of my customers. They wanted somebody to look after sales nationally and we started talking. I decided to come across and haven’t looked back since. This is an exciting time at Top Trailers? You’re planning to expand? We are, into neighbouring countries in particular – cross border trade. We want to capitalise on it and see a lot of potential. We are still expanding into Africa. We are in fact sending a team out to Zambia to look at the potential there and I know we are also starting repair work in those areas as well. It is an ongoing process. We’re at the beginnings of the tip of what is a huge iceberg and the potential is massive. We’re busy examining how we can move forward, looking at Namibia, Angola and elsewhere. But at the moment Zambia is particularly attractive. As you know, our customers are also expanding outside SA, and we can piggyback on that, taking our name out into new markets. 88
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You’re looking at opening an agency in Zambia? We are. That’ll come in the next 12 months. The market is healthy then? Well currently it is quiet domestically. Obviously there are external factors at play and the mining strikes have had an impact. It has led to a decline in demand for tippers as projects are delayed or shelved. Things have become increasingly competitive in the second hand market too, with product selling cheaper than it traditionally has. But we’ve been in these cycles before. Activity will pick up.
Top Trailers focus manufacturing
Fortunately we’ve always had a strong order book. We don’t see it being too problematic and we’ve actually seen orders picking up in some segments, particularly road transport/ container carriers. You can see that in our order books and that is an interesting trend. How would you classify Top Trailers? Locally there are three big boys. We’re in with them. There’s us, Afrit and SA Truck Bodies. We’re in the top three. What’s the secret to your success? A very good relationship with suppliers and customers is critical. We are ten years old now and have achieved a lot. In many ways we are just beginning too, especially in the African context. We’ve done well, and we have a strong order book and solid customer base. Big players are happy to work with us and regularly come back. They’re happy with our product and the service we deliver. The quality in the product obviously has to be there. You can’t build anything without that.
We are ten years old now and have achieved a lot. In many ways we are just beginning too, especially in the African context
Your message is ‘sky is not the limit’? That’s our message. Whatever a customer wants or needs, whatever their problem or challenge, we will build it for them, develop a solution. There is never a limit to new ideas. That’s how we are known and want to continue to be known. END To learn more visit www.toptrailers.co.za. www.southafricamag.com 89
Highly recommended events through to early 2013 South Africa The Body sculpture show – Cosmetic Beauty and anti-aging expo Sandton Convention centre Maude Street Sandown 2196 Johannesburg South Africa 23-25 November 2012 www.saconvention.co.za
Medicine (ASLM) Cape Town International Convention Centre Convention Square 1 Lower Long Street Cape Town South Africa 1-7 December 2012 www.Aslm2012.org
The Green Expo Cape Town International Convention Centre Convention Square 1 Lower Long Street Cape Town 8001 South Africa 23-25 November 2012 www.cticc.co.za
South Africa Forex Expo Cape Town International Convention Centre Convention Square 1 Lower Long Street Cape Town South Africa 6 - 7 December 12 www.saforexexpo.com
The Wine Show International Convention Centre 45 Bram Fischer Road Durban 23-25 November www.wineshow.co.za Student Expo – Pretoria Tshwane Events Centre 164 Soutter Street Pretoria West Pretoria, Gauteng South Africa 28 Nov - 29 Nov 12 www.student-expo.com Kamers vol Geskenke Open Window School of Communication John Vorster Drive Ext East Southdowns Irene, Pretoria Gauteng South Africa 25 Nov - 1 Dec 12 www.kamersvol.com Property, Investment and Lifestyle expo Sandton Convention Centre Maude Street Sandown 2196 Johannesburg, South Africa 30 Nov – 2 Dec 2012 www.saconvention.co.za 90
African Society for Laboratory
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Medifest Blue Waters Hotel 175 Snell Parade Marine Parade Durban South Africa 11-13 December www.vantagemedifest.com The World of Cats & Dogs Exhibition Cape Town International Convention Centre Convention Square 1 Lower Long Street Cape Town South Africa 22-24 February 2013 www.dogscats.co.za ARA Week 2013 Westin Grand Hotel Convention Square Lower Long Street Cape Town South Africa 18-22 March 2013 www.citac.com/index.php/ archive/items/ARA-week-2013announcement.html
Africa Global Expo Botswana 2012 Botswana Conference & Exhibition Centre Fairgrounds Plot 50660 Off Machel Drive Gaborone Botswana 21-24 Nov 2012 www.globalexpo.co.bw Africa International Engineering and Technology Fair Kenyatta International Conference Centre (KICC) Harambee Avenue P.O. Box 30746-00100 Nairobi 06 - 07 December 2012 africatechexpo.com The Nigeria Oil and Gas Conference International Conference Centre Abuja Nigeria 18-21 February 2013 cwcnog.com Offshore West Africa International Conference Centre Castle Road Accra Ghana 19 - 21 March 2013 www.offshorewestafrica.com CAPE V, 5th African Petroleum Congress & Exhibition Le Méridien Re-Ndama PO Box 4064 Libreville, Gabon 26 - 28 Mar 2013 www.biztradeshows.com/tradeevents/african-petroleum-congressexhibition.html
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