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TSEBO GROUP

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Fo od

fellas Continuing the focus on Tsebo Outsourcing, we talk to Dr Chris Jardine, the man who heads up its catering division. By Ian Armitage 2

www.southafricamag.com


Tsebo Catering Solutions FOCUS tsebo

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sebo Catering Solutions is a South African market leader. It is part of Tsebo Group, one of the country’s largest hospitality services and facilities management companies, and comprises of three entities: Fedics, TsAfrika, and Equality Reef Services. Fedics turned 40 last year and provides outsourced catering to a wide range of corporate clients, manufacturing businesses, hospitals and universities. TsAfrika is a high quality catering company for corporate clients and was acquired by Tsebo two years ago. Equality Reef specialises in bulk catering and hospitality for mines. The man tasked with heading up the operation is Dr Chris Jardine. Dr Jardine is the former group CEO of the J and J Group, a diversified investment and management company and has worked in the logistics, IT and telecommunications, and industrial and financial services sectors. Besides his www.southafricamag.com

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Tsebo Catering Solutions FOCUS TSEBO

Microfuture Microfuture is a packaging distribution company, (Level 2 BBBEE contributor) in Northern Johannesburg. We deliver across Gauteng and the surrounding areas, supplying a vast range of recyclable and eye-catching products. Our food grade products are ideal for restaurants, coffee shops, take-away outlets, hotels, canteens, caterers, conference centres, hospitals, schools, guesthouses and bed and breakfast venues. We supply contract and corporate caterers, who service mines, offices and large industrial sites. Microfuture has long supplied the Tsebo Group, building strong relationships with unit managers and sourcing specialized packaging solutions where needed. Microfuture was launched by Norma Walshe-Gore in 2007, who has over 25 years of experience in packaging and distribution and who has a broad network of service orientated back-up people supporting her, who all have a solid understanding of packaging trends and can assist customers with tailored options.

strong operational track record, he has also served on the boards of companies as diverse as MTN, Transnet, Macquarie First South and Union Carriage and Wagons. He holds BS and MS degrees in Computer Science and a PhD in Information Technology, all from George Mason University in Virginia. It is an impressive CV. And he is aiming to spice up a mature sector, bringing “sexy back,” he says. “One of the biggest challenges that executives in our industry face is to keep pace with a changing world and the competition for talent and so in different ways all of us are trying to bring sexy back to catering,” Dr Jardine, who took the helm of the industry leader in February last year, explains. Great, I thought, but what does it mean? 4

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Microfuture procures products from local and international manufacturers, also exporting these products into different market sectors, and into Africa. We put a basket of products together to suit each customer’s requirements, bearing in mind the customer’s environmental policy, assisting with packaging solutions and we are able to provide company branding on all packaging. Another sector of our business is to offer cleaning products. In the future Microfuture is looking to expand nationally and into other market segments. We have also investigated opportunities to import specialty packaging lines. For more information please contact info@microfuture.co.za or visit us at www.microfuture.co.za.


Food Packaging We are proud to offer you our quality range of food and beverage packing products.

Catering Products Our catering products are suitable for any corporate or private event.

Cleaning Products Have a look at our range of different cleaning utensils and cleaning products.

Tel: 011 462-3418 / 011 462-3418 Email: info@microfuture.co.za Web: www.microfuture.co.za.

Unit 3, Riverside Industrial Park Koevoet Street Kya Sand


Tsebo Catering Solutions FOCUS TSEBO

We’ve looked at our service culture, from basics such as the way we greet our customers on a dayto-day basis and even in the way we present our food. Another goal we resolved to pursue with purpose was to sell profitably

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“This business is over 40 years old now and the barriers to entry are low and the management disciplines are known so we need ways to differentiate ourselves by doing something that hasn’t already been done or tried,” he elaborates. “What became evident was that to move forward, we needed to focus on the basics first. We started with a refreshed operational excellence programme. I then felt that, based on my own considerations when deciding to join the company, there was a need also to make the sector as a whole ‘sexier’. There’s been a big push in that respect. We’ve looked at our service culture, from basics such as the way we greet our customers on a dayto-day basis and even in the way we present our food. Another goal we resolved to pursue with purpose was to sell profitably. Not just in terms of our new contracts but also in our daily sales and recognising opportunities to up-sell. Everything we do fits in logically under those tiers, so whether we talk about standardising some of our menus and streamlining our suppliers, making our menus more profitable, or making our menus more appealing; it all fits under the banner one of the basics.


ELEGANT EQUIPMENT · FRAME MARQUEES · NOMADIC TENTS · FLOORING · DRAPING · CATERING · TIFFANY CHAIRS · TABLES · TABLE LINEN · CUTLERY/CROCKERY · GLASSWARE

We design and manufacture marquees to give you the best quality, service and price.

TELEPHONE: (031) 705 4135

FAX: (031) 705 4143

weddingsandfunctions@3i.co.za www.weddingsandfunctions.co.za 138 Shepstone Road, New Germany


Tsebo Catering Solutions FOCUS TSEBO

La Concorde Bakery The history of this operation goes back three generations, starting off as a quaint corner shop bakery in the early 1960’s; La Concorde Bakery came to be. Now situated in Linbro Business Park, Sandton, the years have seen many changes and developments all designed to keep pace with modern day demands. The bakery over the past few years has undergone radical expansion and growth, in terms of floor space, staff and production growth. We specialise in the wholesale supply of a wide range of bakery and confectionary goods to restaurants, coffee shops, canteens, caterers, schools and universities. We pride ourselves in our ability to work with our customers to create and customize new products that will suit their individual needs.

“We’ve had a huge drive to invigorate and transform the way we deliver dining experiences to customers,” he adds. At the heart of this initiative is the experience and passion of dedicated trainers who impart not only the necessary skills to trainee chefs but also the passion and drive to reach their full potential. “We have a National Craft Trainer who, together with our Regional Chefs, is making a real difference in the up-skilling of chefs – that has been a big part of what we’re trying to do in terms of changing the way food is seen and presented. We want that ‘wow’ factor. A chef that knows how to cook and knows what he is doing will obviously cook the right quantities, cook it the right way, and present it the right way. These little things are all important in ensuring that the platform is stable.” 8

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To ensure timely deliveries, seven days a week, La Concorde owns a fleet of vehicles covering the entire Gauteng Province. The bakery is certified Halaal, and has a Level 2 BEE rating. La Concorde Bakery has been lucky enough to successfully partner the Tsebo Group for nearly two decades, and we wish them luck and success for decades more to come. Contact Details Sales: Cheron Sithebe 0834906696 cheron@laconcorde.co.za Office 011 6080888 Fax 011 608 0303


La Concorde are proud to be associated with the Tsebo Group and wish them success in the future

La Concorde Bakery PO Box 97 Morningside 2057 Email: cheron@laconcorde.co.za Tel: 0834906696 / 011 6080888 Fax: 011 608 0303


Tsebo Catering Solutions FOCUS TSEBO

Despite the challenge of a diverse customer base and having to cater for both lowerend and high-end customers, Tsebo is winning the battle. And while the catering industry may not be heavily dependent on technology, Tsebo Catering is taking an innovative approach towards “pushing the boundaries”. “I’ve been championing the use of business intelligence,” Dr Jardine says. “We have been looking at the whole sphere of analytics to improve the quality of the decisions we make by employing and sharing best practices . We have taken the current systems and we’ve glued them together with a reporting system, which makes it possible for us to look at profitability trends and solve problems at a contract level. At any given point we can see for instance how many people are on the contract, what our margins are with our food and retail products, and generally view performance against a range of metrics and ratios. And we can aggregate that and look at the performance of segments, managers or some other dimensions. We are now in the next phase of our plan, which is to look at how we can forecast better when we’re entering a new environment, what products will sell, how our customers will consume and what are the price point sensitivities. So the whole injection of business intelligence into running a 10

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Cannon Hygiene Cannon Hygiene leads in the provision of hygienic washroom services to Tsebo Cleaning Services in the Cape Town and Port Elizabeth regions, preventing the spread of germs and cross-contamination. We offer a full washroom service, including feminine hygiene Concept Units, soaps, sanitizers, fragrance units & hand drying systems. We also offer Pest Control and our Extreme Deep Cleaning Service. We would like to congratulate Tsebo Group with 40 years of service excellence. We assure you of our commitment to keep your clients satisfied. You can be sure that your clients like our service! In a recent worldwide survey, 92% of our clients agreed that Cannon Hygiene understands their needs and 93% said it provided them with value for money. Further details are available at 0860 22 6000 or www.cannonhygiene.co.za.


We take clean to a whole new level. When it comes to feminine hygiene, a sanitary and seamless solution is vital. Improper disposal can heighten the risk of infection from harmful viruses and bacteria and lead to blocked toilets. Cannon Hygiene’s replace and removal washroom service eradicates 99.999% of all germs and prevents the hazard of crosscontamination.

For more information contact us on 0860 22 6000 or visit at www.cannonhygiene.co.za

Our relationship with Fedics, part of the Tsebo Group, sees us supplying them with prepared vegetables and fresh fruit and the relationship has offered our company, a 100% black-owned South African outfit, “the opportunity of a lifetime" and we look forward to the relationship growing from strength to strength. We supply our products to mass catering companies for projects such as power stations, military bases, hospitals and established institutions where there is catering. We also have an import and export licence and are looking for international fresh produce market agents.


Tsebo Catering Solutions FOCUS TSEBO

B2B Catering Suppliers B2B Catering Suppliers was established to provide all food service equipment to the catering industry including, but not limited to: · Glassware & Barware · Crockery & Cutlery · Industrial Stoves & Heating Equipment · Industrial Refrigeration · Catering Uniforms & Linen · Design & Layout Solutions · Consulting We have a wealth of industryrelated experience and are able to offer this to all our clients. We not only provide food service equipment but also understand how it applies to your business. We believe that because we are a smaller company, we are able to service all our clients promptly and more efficiently. We pride ourselves on this fact and count honesty, commitment and enthusiasm as some of our core values.

Our unique selling point is that we’re able to sell peaceof-mind contract catering services across the spectrum

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business as big as ours is something that we’re trying to push.” The ability to provide a wide range of quality catering services to several different industries on a segmented basis is what separates Tsebo from its competitors. “Our unique selling point is that we’re able to sell peace-of-mind contract catering services across the spectrum,” he says. “We are able to segment and customise our offerings across a range of clients, from corporate clients, hospitals, universities and mines. We have a strong experience base across the full spectrum of contracts, but more importantly, a full spectrum of insight and management expertise in these sectors.” Looking forward, Dr Jardine believes that Tsebo Catering’s footprint will extend even further into Africa. “The next leg of progress is to extend our African footprint. That is something that’s very close to my heart. We have built a fairly sizeable business development team for whose job it


equipment to the

We would like to thank Tsebo Group for all their support & congratulate them on their 40th anniversary as well as wish them continued success for the future.

www.b2bcateringsuppliers.co.za Postal Address: Postnet Suite 266 Private Bag X8 Northriding 2162 Email Addresses: warren@b2bcateringsuppliers.co.za – 082 042 0183 trish@b2bcateringsuppliers.co.za – 084 523 3565 sales@b2bcateringsuppliers.co.za – 011 791 4817

Po Box 12508 Hatfield, 0028 129 Foundry St Silvertondale

Bondi Distributors is a distributor of a full range of food products to the catering and hospitality industries. Our wide range of products includes: · Chilled, frozen and ambient food products · Full range of Packaging and food wrapping products

Tel:

012 804 9204 012 804 9222 Fax: 012 804 9212 Email: bondicc@mweb.co.za Web: www.bondi.co.za

We have partnered the Tsebo Group in servicing the industry for the past 7 years, and we are proud to be associated with the Group because of its leadership in the market. Due to this partnership, this also enables our company to service the wider market sectors throughout South Africa.


Tsebo Catering Solutions FOCUS TSEBO

is to plant the seed for our African growth. Their job is to prospect, especially in the neighbouring countries. They’re going as far as Kenya, Uganda and Nigeria to insure that we are able to go and chase down big projects but also to look at more country based strategies rather than project based strategies. We have a dream ato be a truly pan-African company so we want to have roots in Mozambique, roots in Botswana, roots in Kenya and Ghana – we want to have roots where opportunities manifest themselves. We want to be able to look back at our history as an African company, not just a South African company. 14

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The next leg of progress is to extend our African footprint

“I’m a very strong believer in execution being a strategic differentiator in business. Ultimately once you chart a course, the ability to make it happen and get the job done has to be has to be what distinguishes you. You don’t get marks for the plan; you get marks for the outcome. “We’re confident but we’re also mindful that there isn’t a textbook you can use to deliver on our aspirations. We have to be respectful of the countries and cultures that we’re operating in and move in a constructive way.” END Visit www.tsebo.com.


Mitchell’ s Mosle m Butchery Proud to be associated with Tsebo Group Mitchells Ave Woodlands Mitchell Plain 7785 Cape Town sabmeats@telkomsa.net 0027 21 374 7377

www.n1.co.za info@n1.co.za Tel: +27 21 557 1510 Fax: +27 21 557 2410

Suppliers of a wide range of fresh and frozen products to the local hospitality industry, and an export approved facility We service a wide range of clientele including Government institutions, Ship Chandelers, Industrial Caterers, Hotels and export to many African countries. Personal service from our sales team will help clients with menu planning and costings. We will also help with product development should our clients require a specialised product.

Certified Halaal facility Certified ISO 9000 and HACCP approved


future

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sebo Cleaning Services has grown into a strong player in the contract cleaning market, operating over 150 contracts and employing nearly 5,000 people. The business has remained true to its roots in hospitals, retaining a specialisation in the high-quality segment of contract cleaning. Although the business today has a more diverse clientele, the ethos of high standard of cleaning that is suitable for a hospital environment applies to the service ethic and quality provided by Tsebo Cleaning Services. Tsebo Cleaning Services has a proud record of innovation and technological leadership in the cleaning segment. It only uses only vacuum cleaners with hepa filters to advance indoor air quality, and infection control is benchmarked at current Centres for Disease Control / CDC levels. It was the first to utilise the

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spar k l i n g

PDA – Personal Digital Assistant – as an inspection tool that allows staff to log reports for maintenance, ensuring a proactive and accurate approach to cleaning services. Tsebo Cleaning also was the first to introduce a “call-ontechnology” to enable responsive service and immediate delivery. Within the cleaning industry, only Tsebo has built its company on the twin pillars of service innovation and people investment. Through investment in postgraduate management development, it has the most qualified management team in the industry backed by leadingedge technology, and this delivers the highest standards of cleaning at competitive prices. Tsebo Cleaning invests in the drivers of customer quality experience, in order to guarantee that the Tsebo Cleaning six rules of service remains an unbroken promise.


Tsebo Cleaning Services FOCUS TSEBO

Within the cleaning industry, only Tsebo has built its company on the twin pillars of service innovation and people investment

Tsebo Cleaning Services is a division of Tsebo Outsourcing Group, one of South Africa’s leading black-owned hospitality services and facilities management companies, with a national footprint encompassing southern Africa. A Sotho word that means “knowledge, knowhow and skills” - these are key to the success of a services group. The Tsebo Outsourcing Group, formerly known as the Fedics, reflects the progressive approach of the Group and reinforces its position as a leading transformation company in South Africa. A winning strategy has been one of shared services through the appointment of key national resources, providing greater synergy and expertise across the Group. Over the years, Tsebo Outsourcing has positioned itself as a leading outsourcing company and shows no sign of slowing down. END To learn more visit www.tsebocleaningservices.co.za. www.southafricamag.com 17


T h e best i n

facilities management

solutions

Facilities management is a cornerstone of the operations at Drake & Scull, a Tsebo Outsourcing Group company with aspirations to conquer Africa. We talk with CEO John Wentzel. By Ian Armitage

T

he cost of occupying a building (whether owned or leased) and maintaining related assets is the largest item of budgetary spend for most large organisations, after employee salaries. Any CEO will want to know what those costs are and where savings may be made, strategically and operationally.

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“These days, organisations must think strategically if they are to do more than simply survive in increasingly competitive marketplaces,” says John Wentzel CEO of Drake & Scull, a leader in facilities management (FM). “This thinking applies to both core and non-core business. In the case of the latter, facilities management has a pivotal role to play.”


Drake & Scull FOCUS tsebo

He says when it comes to good FM the advantages aren’t in question. His firm Drake & Scull claims to be “the best in integrated FM solutions”. We had to investigate. “We’re a leader in this arena,” says Mr Wentzel. “We’ve been in the industry longer than anyone else and we’re very diversified. If you look at our major competitors, they’re very good companies, but they work with only one or two significant contracts. We do not have that. We’re evenly spread and have between 50-60 contracts across the company and in a number of different sectors. “I have to mention our people too,” he continues. “Over the last 20 years we’ve developed the expertise to manage different groups from different backgrounds, different languages, ethnicities etc., across multiple sites and multiple industries. In this country it is still very much a people business. Facilities Management isn’t technologically driven as it is in Europe. The technology isn’t as sophisticated and our clients facilities are not as heavily invested in technology compared to Europe The cost of labour here is low compared to Europe so we tend to do things with labour in this country, which global competitors would tend to do with technology in their respective countries. I think we’ve developed the skill to be able to manage many different groups of people.

Our brand difference is about people. Our world class processes and systems are delivered by human beings who can adapt and think on their feet

“Another differentiator is that over the last 12-15 years we’ve had the ability to work with government on public and private partnerships and it has given us the opportunity to understand how that operates and we’ve shown the ability to manage that quite well; we have several across the country and none of our competitors have significant PPP experience. I think those are the things that make us different.” Drake & Scull has the capacity to offer tailored solutions to meet the demands of individual needs, Wentzel says. “We offer workable, reliable solutions and services which are cost-effective. As a client, you have the advantage of obtaining multiple services under one contract using a single point of contact and the advantage of that is that it makes it easy for you to outsource these functions. I think we are good - we have earned a reputation of being the best in integrated FM solutions.” www.southafricamag.com 19


Drake & Scull FOCUS tsebo

Voltex In Africa today, achieving energy efficiency and sustainable energy savings is ever more critical. As a market-leading stockist and reseller of a vast and comprehensive range of electrical and lighting products, Voltex is perfectly positioned to drive the development and implementation of technologies which can achieve this. That’s why Voltex are ensuring continent-wide adoption and knowledge of their sustainable and environmentallyfriendly services and technologies.

Don’t just take Mr Wentzel’s word for it - PMR. africa recently awarded the firm its Golden Arrow Award for External Facilities Management Companies survey. The survey is based on the perceptions of peers and clients, regarding the perceived strengths and weaknesses of external facilities management companies. It’s quite the achievement. “We are incredibly proud to have won the Gold Arrow Award. This award sets a benchmark for others to aspire to and it recognises the hard work and dedication of all the employees at Drake & Scull,” says Wentzel. And despite a challenging economic environment, this focus hasn’t diminished and the firm continues to perform “strongly”. “Our performance reflects the economic situation that our country faces,” Wentzel says. “In terms of where we are, I think we’re comfortable and the business is performing as anticipated. We’ve seen a pullback from major clients who are cost focused, so they’re obviously questioning whether they want to do 20

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Additionally, Voltex has set its sights on expanding its presence into the African market. Voltex MD Stanley Green says that the group, which has 53 strategically-located outlets in South Africa, has plans to increase its activity into Africa. “We are very proud of our national footprint and we do at present distribute our products to some African countries, but we believe that significant opportunities exist to grow our business in Africa, and in doing so better serve our customers,” says Green. Voltex Group Commercial Manager Hugh Ward explains that with the South African business sector under stress, many of its customers are becoming more active beyond the country’s borders. “We will partner with our preferred suppliers and customers going into Africa and in this way, they can have the confidence that they are getting the correct product, at the correct price, at the destination of their choice,” says Ward. Voltex is the largest independent electrical wholesaler in Southern Africa, a stockist and reseller of a vast and comprehensive range of electrical and lighting products, including national and international suppliers and their brands. Voltex is a proudly Bidvest company and is a wholly owned subsidiary of the Bidvest Group Limited, a company listed on the South African stock exchange. Voltex forms part of Bidvest Electrical and enjoys a Level 2 BBBEE rating.


your electrical connection GO GREEN

SWITCH ON

LIGHT UP NDUSTRIAL & COMMERCIAL SWITCH ON

& COMMERCIAL SWITCH GO GREEN

SWITC

LIGHT UP SWITCH ON

INDUSTRIAL & COMMERCIAL www.voltex.co.za


Drake & Scull FOCUS tsebo

Amaloba In 1999 Amaloba Horticultural Services (Pty) Ltd. was established with the assistance of Isivuba Trust, which provided the financial backing and training expertise and we are owned by 100% black Shareholders. It initially entered the interior plantscaping business with a view to setting up a reasonable client base and then moving into the landscaping industry. Being an affirmative action company we need to support and encourage other companies with such policies by giving them opportunities, provided that they are competent enough to deliver quality service. We also ensure that quality service is upheld at all times in disciplines such as exterior landscaping (design, installation and maintenance), interior plantscaping (designing, installation and maintenance).

things the way they have previously and also politically, we’ve seen significant question marks being drawn across outsourcing from a government perspective. It has been a difficult year for the industry. Despite this I’m comfortable that the business is doing as well as it is. Most importantly, we have not lost any of our major clients and that’s probably the biggest achievement. The competition is tough! In fact we have gained accounts and have shown the ability to continue to grow organically in a very difficult market and maintain what we’ve got. I think with that we should be happy.” Next on the agenda is Africa. “Domestically by the end of next year I’m confident that we will be number one in terms of turnover. We’re already number one on the basis of number of clients and number of sites but by the end of next year our market share will be probably be sitting on between 22

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20-25 percent and at that stage it becomes very hard to grow organically because you have to take away from your competitors and it becomes very expensive. Longer term, if we’re going to get the double digit growth that we seek, it’s going to have to be north of our borders into the rest of Africa and that should mean that our growth focus will turn significantly towards that and we have a strategic intention to operate in 12 countries over the next 24-36 months. That will give us the opportunity to grow significantly faster than we would be able to do based on our market share locally. The story of the company over the next two to three years is very much an Africa story and the consolidation in terms of our market share in South Africa.” Wentzel says interest in and from Africa is “significant”. “There are lot of global clients out there who want to have a partner in


We offer: Landscaping consultancy Interior plantscaping consultancy Interior plantscaping (design, installation and maintenance) Landscape designing, installation and maintenance Garden clean up and maintenance services Rental of indoor plants and containers 122 Koedoe Road Laezonia, 0026 PostNet Suite #258 Private Bag X18 North Riding, 2162

Tel: 0027 12 669 9922/3/4 Fax: 0027 12 669 9925 E-mail: amaloba@wol.co.za Cell: Godfrey Masegela 082 905 0831 Cell: Stephan Grobler 082 906 4199

the continent that they can grow with but at the same time have a single point of contact,” he explains. “We are that. Over the last six months we’ve had significant interest and inquiries from large international players saying that they want to set up operations in Africa and expand and want a partner that can manage FM requirements. It’s not just a wish list, we are responding to client demand – especially from large European based corporates, as well as African corporates, who like us, see Africa as more likely to deliver significantly higher rates of growth.” And the market is there for the taking. There aren’t “many major players in the FM space, cross-border”. “One of the things we’ve found in Africa is that we don’t see many, if any, of the major global players operating across the continent, but there are local competitors” Wentzel says. “We think the reason for that is that Africa

is very complex, there are hundreds of languages, many different practices, and each country is so different. Consequently one cannot take a cookie cutter approach. You can’t do the same thing in every country. We are going to seek to identify partners in the respective countries - the ones that understand the industry and may be operating on a small scale. We will try to work with them as an entry approach. For each country one has to understand things such as business practice, tax regimes and political stability. It’s going to be a huge amount of work but we’re excited about it but it won’t be an easy journey. I think this is why we don’t see so many people doing it. It’s so difficult, but we relish the opportunity to expand in to the rest of Africa.” Watch this space. END Visit www.drake-scull.co.za. www.southafricamag.com 23


Energ y T h e busi n ess case Companies have begun adopting energy saving technologies as a matter of good business practice in a world with high and volatile energy prices. Tsebo Energy Solutions’ CEO William Gould gives us the business case. By Ian Armitage

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Tsebo Energy Solutions FOCUS tsebo

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ore and more businesses are talking about cutting costs by using energy more efficiently. Why? Energy is the fastest growing non-labour component of MRO expenditure globally, while in South Africa energy costs have increased by 200 percent in the last three years - a trend we can expect to continue for at least another five. But don’t dispair. Undertaking the simplest of efficiency measures, in combination with making energy management a priority, can yield savings of 20 percent or higher. For high energy use businesses, in which energy expenditure can account for one fifth of overheads, this amounts to a transformative business saving. Yet surprisingly, many senior executives “significantly underestimate” the returns from energy efficiency investments, says William Gould, CEO of Tsebo Energy Solutions, a division of the Tsebo Outsourcing Group. The company’s goal is to ensure clients realise the opportunities to make significant savings to their overheads, through tighter management and control of their energy use, he says. “Businesses are wasting billions of rand every year on energy bills that could be avoided. The bottom line is that, as far as energy is concerned, if you put a viable business case in front of a board, they can see the rates of return; it is clear that any money spent on energy improvements generally yields a better return than what they’re getting in their own core businesses. For argument sake, a typical voltage optimisation, you’ll get a return of anywhere between upwards of 75 percent over four years. Those kinds of ROI are unbelievable. Having said that we do have to convince people.”

The business case is everything. If the true returns from energy efficiency are not being fully recognised, then important projects with the potential to slash both costs and carbon emissions could be being sidelined, he says. “While a greater drive in implementing sustainable business practises is gaining momentum, the primary drive is simply because of the expense. Sources of renewable energy – wind and solar – need to be more seriously considered, but at this stage, they are still very expensive to implement with attractive ROIs in most commercial sectors. Companies like ourselves are watching this space very closely. Advances in technology are driving down photovoltaic panel prices, while similar trends in battery and invertor technologies, coupled to growth in demand, will see the viability of solar power installations rocket in the years to come.” Understanding energy consumption with high level of granularity is absolutely vital, Gould says. It is the foundation of identifying savings. “We’re leaders in this consumption intelligence.” What makes Tsebo Energy Solutions different are three things. Firstly, the ability to rapidly analyse masses of energy data across muiltiple points of consumption, and quickly identify unacceptable www.southafricamag.com 25


Our ability to understand how an energy investment is performing is so critical; it empowers every level of stakeholder, with accurate information because the direct effect of savings can measured in real time

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variances. Secondly, the use of the analyses to trigger interventions - these could be billing errors, voltage imbalances, abnormal non-trading energy consumption through to more longer term projects such as voltage optimisation, lighting retrofits and off-grid interventions, says Gould. Tracking Energy Interventions is the third and a key differentiator. “Our ability to understand how an energy investment is performing is so critical; it empowers every level of stakeholder, with accurate information because the direct effect of savings can be measured in real time on our systems. Energy savings business cases that can be kept alive with current information is the stuff commercial dreams are made of, and this is what we do.” On the subject of voltage optimisation, Tsebo Energy Solutions holds a sole distribution license with EMS Energy Management Systems UK to install and maintain Powerstar® Voltage Optimisation Technology - a market leading voltage optimisation system that guarantees savings. While not widely understood in South Africa, voltage optimisation targets a reduction in three areas: over voltage, harmonic contamination and reactive power, all of which lead to either direct or in-direct savings, says Gould. “The direct savings are guaranteed, that means we put our money where our mouth is, and that’s what made Powertsar so successful in the UK market. They’ve sold 4,500 Units, typically with a payback between two and three years. We are pleased that the SA market is taking off very well. In the space of six months six units have been sold and the demand is strong. We are working really hard and look forward to the exicting ride rolling this out.” Energy efficiency is a must for South African companies based on the high increases in electricity prices, Gould stresses. “All things aside, sustainable business practices pay, and we are very active in engaging the additional commercial leverage. Eskom provides on accredited savings initiatives, through its Demand Side Program.”


Tsebo Energy Solutions FOCUS tsebo

From a macro perspective, SA is under immense pressure to reduce its carbon footprint, with more than 90 percent of power coming from coal-fired plants. It has to find more sustainable sources of energy and grow the necessary infrastructure to match the economic growth the country needs to create employment and alleviate poverty. Souths Africa’s Minster of Finance announced in his 2012 Budget address the immenint imposition of carbon taxation and a white paper is before the legislators. While it will take some time to finalise, businesses that are smart are already beginning to factor this into their strategy to reduce emissions. “We can play an obvious role here too,” Gould concludes. END To learn more visit www.tseboenergy.com. www.southafricamag.com 27


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