SA Mag - Issue 16

Excellence in service delivery will become the norm in Johannesburg says new executive mayor, councillor Mpho Parks Tau

PEOPLE CULTURE TRAVEL PROPERTY BUSINESS WINE SPORT ENTERTAINMENT

Coca-Cola DomeQ&A with Coca-Cola dome’s Carol Weaving

Canopy Kings South Africa Magazine talks to SA Canopy managing director Tony Walsh

Siemens HealthcareSiemens’ philosophy has always included more than just business - it works hard to help communities

ZambeefZambia’s agri-business powerhouse

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SOUTH AFRICA’S STRIKE SEASONFuel shortages have begun to bite in South Africa as we enter week two in the so-called annual “strike season”. At least 250 gas stations have run out of supplies so far, with strikes are under way in two major sectors, and more are threatened.

Johannesburg and Pretoria are the worst hit by fuel shortages caused by the strike by chemical and petroleum workers. 70,000 workers in these sectors are out on strike and while unions have indicated some progress has been made with employers in the chemical industries, talks in the fuel sector are only expected to get under way in the next several days.

There are concerns that if the strike continues any longer the impact on the economy will be severe across the spectrum - from the mining sector to hospitals and clinics.

You can keep up to date with this on our website.

Turning our attention to the magazine, as well as a look at the strikes so far, we have an exclusive interview with Joburg’s Executive Mayor, Councillor Mpho Parks Tau, who believes excellence in service delivery will become the norm in the city.

We have much, much more inside. I hope you enjoy this feature and everything else in the magazine.

Enjoy the magazine!

Ian ArmitageEditor

EDITORIAL Editor – Ian ArmitageEditorial assistant - Inger SmithSub editors – Jahn Vannisselroy Janine Kelso Tom Sturrock Writers –Colin ChineryJane BordenaveJohn O’Hanlon

BUSINESSAdvertising Sales Manager – Andy Ellis Research manager – Chris BolderstoneResearchers – Jon JaffreyElle WatsonDave HodgsonNicholas DaviesStuart ShirraSales – Andy WilliamsSales administrators – Abby NightingaleKatherine Ellis

ACCOUNTSFinancial controller - Nick Crampton

PRODUCTION & DESIGNMagazine design – Optic JuiceProduction manager - Jon Cooke Images: GettyNews: NZPA, AAP, SAPA

DIGITAL & ITHead of digital marketing & development – Syed Ahmad

TNT PUBLISHING CEO - Kevin Ellis Chairman - Ken Hurst Publisher - TNT Publishing Ltd

South Africa Magazine, The Royal, Bank Plain, Norwich, Norfolk, UK. NR2 4SF

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06 NEWSAll the latest news from South Africa.

14 COVER Th e City of Johannesburg

Th e City’s Executive Mayor, Councillor Mpho Parks Tau talks to South Africa Magazine.

32 Seardel’s turnaround takes shapeSouth Africa Magazine learns that Seardel continues to make further progress on its turnaround journey.

38 A heritage of quality fruitEach serving of Westfalia’s creamy, delicious avocado off ers nearly 20 vitamins, minerals and phytonutrients.

48 Agri-business powerhouseSouth Africa Magazine goes to Zambia and learns more about Zambeef, the country’s agri-business powerhouse

62 Fleet AfricaFleetAfrica is a leader in the fl eet management and full maintenance leasing industry.

66 Dress to impressTh ere is more to Joburg-based Gross & Co than helping chefs dress to impress.

70 When in domeQ&A with the Coca-Cola dome’s Carol Weaving.

74 DB SchenkerTh e supply chain side of your business.

78 KwikBuildExperts in aff ordable, pre-engineered building solutions.

84 MerpakIf you want to talk to somebody use a letter, Merpak MD Deon Joubert tells South Africa Magazine.

90 RichmarkAngel investors and tomorrow’s champions.


Contents94 Safal Steel

South Africa Magazine looks at the new Safal Steel coating facility in Cato Ridge, Durban.

100 Botswana Insurance Company

Insurance is one of Botswana’s fastest-growing sectors, says Dziki Nganunu.

106 Striking GoldPatrick Malaza, CFO of Central Rand Gold, talks to South Africa Magazine.

110 Geberit Southern AfricaGeberit continuously introduces new and innovative products to the market to satisfy the requirements of its customers.

114 InterlamFree State based Interlam (Pty) Ltd., has been providing construction and engineering expertise to a number of industries, especially mining.

118 In the bag Specialising in the manufacture and distribution of refuse bags, Izaka Plastics is “dedicated to innovation and the development of modern fl exible packaging solutions”.

122 Canopy KingsSouth Africa Magazine talks to SA Canopy managing director Tony Walsh.

126 ZIBO boxes cleverZIBO’s customer list reads like a who’s who of South African retailers. How did they achieve it? MD Andre Smit has the answers.

130 Klamfl ex Pipe Couplings Klamfl ex Pipe Couplings has been producing pipe connectors for nearly 50 years.

134 Siemens HealthcareCEO of Siemens Healthcare, Helen Brown, talks to South Africa Magazine.

94

6 www.southafricamag.com

All the latest news from South Africa

Strikes

Three trade unions representing gold miners have resumed annual salary negotiations with the Chamber of Mines.

“We are moving very positively with the unions and it has been very good communication,” chamber spokesman Jabu Maphalala said.

The National Union of Mineworkers (NUM), the United Association of SA (Uasa) and Solidarity would represent unionised employees working for chamber member companies such as AngloGold Ashanti, Harmony Gold and Goldfields.

“We hope that this time around the gold producers will move significantly to 14 percent,” said Frans Baleni, the general secretary of the NUM, which represents the most unionised employees in the sector.

“There should absolutely be no waste of time. We do not have all the time in the world and we cannot waste time dancing on one spot.”

UNIONS MEET CHAMBER OF MINES

OVER WAGESThe NUM and Uasa hope to raise the chamber’s offer from 4.2 percent to 14 percent. Solidarity’s members have given their negotiators permission to ask for 12 percent.

Solidarity’s mining national organiser Louis Pretorius said

it submitted the lower figure in light of the current production environment and Consumer Price Inflation, which is at 4.6 percent.

Coal companies have offered a 4.5 percent wage increase for the lowest category of employee, and 4.2 percent for all other employees.

Companies represented in the Chamber of Mines negotiations include AngloGold Ashanti, Harmony Gold and Goldfields.

The engineering sector of the National Union of Metalworkers of SA began protests on July 4 in pursuit of a 13 percent salary increase.

It has been offered seven percent.


All the latest news from South Africa

JSE DIRECTOR SALARIES UP 23%The salaries of executive directors at firms listed on the JSE are rising. Over the past year salaries of executive directors at the Top 40 JSE companies have risen 23 percent and their short-term incentives 56 percent.

Salaries of directors of smaller companies, however, are shrinking or staying constant.

This is revealed in PricewaterhouseCooper’s third report on the remuneration of executive directors.

The report examined the annual reports of 384 JSE companies published in the year to end April.

Total remuneration of heads of companies with a small market capitalisation declined 6.7 percent, from R2.03 million to R1.9 million.

Gerald Seegers, tax director and head of human resource services at PwC South Africa, said this trend at small-cap companies was in line with international trends.

The highest paid worker earns 300 times more than the lowest paid worker.

Business

CSA CHIEF RECEIVES DEATH THREATSCricket SA (CSA) president Mtutuzeli Nyoka who initiated investigations into allegedly irregular bonus payments to CSA staffers, claims to have received death threats.

According to media reports, Nyoka said that independent sources had informed him that his security was “at risk”, which he was taking seriously as a death threat.

Nyoka’s lawyer, Bernard Matheson, confirmed that he had received warnings that his security is at risk, claiming that Nyoka had called him on a trip to Hong Kong to inform him of the warnings.

“He was told by two different sources that he should be aware that his security was at risk,” Matheson said.

“He was clearly shaken up when he called me and he is concerned about this.”

Nyoka was reinstated by the High Court in Johannesburg in April, two months after he was removed from the CSA board following a clash with CSA chief executive Gerald Majola.

Nyoka had called for an independent investigation last year into bonus payments made to Majola and other CSA staff for hosting the 2009 Indian Premier League (IPL) and ICC Champions Trophy tournaments.

An internal probe was held and Majola was ultimately cleared, but was slapped on the wrist and told to clear future bonus payments with the CSA remuneration committee.

After he was fired, Nyoka threatened to blow the lid on corruption in South African cricket.

He told the court that R68 million had gone missing from a CSA bank account, but the federation defended itself by stating that the money had been held on behalf of the Board of Control for Cricket in India as running costs of the 2009 IPL.

After Nyoka was reinstated, CSA announced in May that an independent audit would be held into its finances.

The following month it was revealed that three members of CSA staff, including Majola, had awarded themselves R1.9 million in bonuses without revealing the full figures to the federation’s board.

Galane said Mbalula would meet with the CSA executive later this month to assess the progress of the audit.

Sport


COSATU CONDEMN PICK N PAY RETRENCHMENTSCosatu has expressed “shock” at Pick n Pay’s announcement that it is contemplating retrenching around 3137 workers.

Pick n Pay said the retrenchments were in terms of Section 189A and 189 (3) of the Labour Relations Act, “due to operational requirements at the company within the non-management bargaining unit”.

Cosatu said in a statement it would back any action its affiliate, the SA Commercial, Catering, and Allied Workers’ Union (Saccawu) took to save these jobs.

“We cannot afford to lose still more jobs at a time when unemployment is still a national crisis.”

Cosatu said that according to Pick n Pay operations director Neal Quirk, the decision was because of the company’s declining profitability and the loss of market share.

It believed “the move is a response to the threat posed

Business

by the takeover of Massmart stores by the union-bashing multilateral, Walmart”.

“We predicted that this would lead to retrenchments in other retail companies, as they struggle to compete with this global giant in the retail sector, and Pick n Pay is proving us to have been right,” Cosatu said.

The attack on jobs would strengthen its determination to stop the “Walmart invasion”.

Cosatu said jobs not only in Massmart stores, but in other retailers like Pick n Pay, and in the South African manufacturing industry would be under threat.

The 13 percent wage increase being sought by striking engineering workers is a “matter of life and death”, the National Union of Metalworkers of SA (Numsa) said.

“We are not backing off,” Free State regional secretary Andile Zitho said in a statement.

He added that even 13 percent was not enough to cushion workers against increases in the costs of food, electricity, education, water, and fuel.

“The 13 percent is a matter of life and death.”

Zitho was responding to the Steel and Engineering Industries’ Federation of SA (Seifsa) claims that it could not afford the wage increases.

Employers in the sector have offered seven percent.

“... The trade unions are demanding wage increases... and a variety of amendments to current employment conditions – all of a nature unaffordable by the Seifsa membership,” executive director David Carson said.

Zitho called the comments “ridiculous”.

WAGE INCREASE “MATTER OF LIFE AND DEATH” SAYS NUMSA

Strikes


BUSINESS: Eskom increased its revenue by 29 percent for its financial year ending March 2011, the power utility has revealed. The increase was driven primarily through tariff hikes it imposed a year earlier. Group revenue was R91.4 billion, up from R71.1 billion. “Revenue growth was driven primarily by the 24.8 percent tariff increase granted by Nersa [National Energy Regulator of SA] effective from 1 April 2010,” according to a booklet on the results released in Johannesburg.

BUSINESS: Omnia has reported a huge surge in profits for its financial year ending March 31. In a statement, Omnia Group MD Rod Humphris said: “The 678 percent increase in profitability for the full year has been driven by an exceptionally good year for our mining and agriculture divisions.” Profit was R451 million, up from R58 million.

POLITICS: Anglo American’s executive director in South Africa, Godfrey Gomwe, believes nationalisation is not government policy. “We believe that the South African government believes in free enterprise... We believe nationalisation is not the policy of the government of South Africa,” he told media gathered at Anglo American’s local procurement and enterprise development fair in Johannesburg. “We believe they will make the right decisions around the debate that’s currently raging.”

NEWSINBRIEF

MASSMART FULL-YEAR SALES UP Massmart, the local retailer that was recently acquired by US group Walmart, said sales for the 52 weeks to June rose 11.7 percent to R53 billion.

The profit boom came even as prices fell 1.3 percent over the same period

Business

Business

NENE: RECOVERY IS

WEAKDeputy Finance Minister Nhlanhla Nene has told a G20 conference on infrastructure and growth that South Africa’s economic recovery is not yet sustainable and is still relying on loose monetary and expansionary fiscal policy.

“While this recovery is stronger than a year ago ... its foundations are not yet sustainable and it is highly dependent on support from expansionary fiscal and monetary policies,” he said.

The economy grew by a stronger than expected 4.8 percent in the first quarter of 2011.

Money

– with the biggest increases seen at Massmart’s Massbuild and Makro divisions.

Makro sales rose 10,5 percent year on year; Massbuild sales rose 14,1 percent.

Comparable store sales increased by 5.2 percent.

“The higher sales

levels associated with the FIFA World Cup Soccer tournament in May and June 2010 reduced total and comparable sales growths in Massdiscounters and Makro in the comparable months in 2011,” the company said.


METAL STRIKE TURNS VIOLENT

SAFA TO PAY R5M FOR BAFANA NAME

The metalworkers’ strike, which began on July 4, has turned violent, according to media reports July 8.

Business Day called the strike “one of SA’s bloodiest and most violent”.

The National Union of Metalworkers of SA (Numsa) claimed that police had shot at four striking workers at the Bolt Corporation in Krugersdorp.

Ekurhuleni metro police revealed that several Numsa members had been arrested for public violence in Germiston, where they had been burning tyres and throwing stones at passing cars.

Constable Mashudu Phatela said nobody was injured and that no damage had been reported. Phatela said the nine would appear in the Boksburg Magistrate’s Court.

Numsa earlier announced that its members would embark on rolling mass action in demand of a 13 percent salary increase. Employers were offering seven percent.

The strike started after the Labour Court’s dismissal of an application for an interdict to stop the strike, brought by the Plastic Converters Association.

The SA Football Association (Safa) will pay R5 million for the trademark to the South Africa national team’s nickname, Bafana Bafana.

After fierce battle with Stanton Woodrush Ltd – which owns the Bafana Bafana trademark for apparel, headwear and footwear – Safa has announced it would buy the full rights to the name.

The row over the use of Bafana Bafana has been raging for 18 years.Safa, which at one point considered changing the team’s

nickname, will pay the R5 million fee over a 12-month period.Safa entered into a joint venture company in 2005 with Stanton

Woodrush called Safa Licensing and Management (Slam).It owned 50.5 percent of Slam, which controlled the

trademark, and Stanton Woodrush owner Wayne Smidt held the other 49.5 percent.

Woodrush bought the Bafana Bafana trademark in 1993.

Strikes

PROTEAS OUT OF NETBALL WORLD CHAMPIONSHIPSSouth Africa have been eliminated from the World Netball Championships after a 58-28 loss to world No 1 New Zealand in the quarterfinals.

The Proteas, ranked sixth in the world, held an 11-10 lead after the first quarter in Kallang, Singapore.

New Zealand, however, bounced back in the second quarter and drew clear, leading 27-17 at halftime.

They went on to win comfortably and progress to the semi-finals.

Proteas head coach Elize Kotze said that despite defeat she was pleased with her team’s performance.

“They had to change their game plans, because we weren’t allowing them to play the way they wanted to,” she said.

“I am delighted that the team is playing with courage and pride, and they no longer feel inferior to the top teams.

“I think this team is just beginning to show what they can do.”

Sport

Sport


TATA PLANS SA FACTORY

DENEL POSTS R111M PROFIT

Tata, the Indian industrial giant, will begin construction of a vehicle assembly facility in Rosslyn, Pretoria, later this month, Business Day has reported.

Debasis Ray, Tata’s spokesman in Dubai, confirmed the investment.

“We’re not giving out any details now, but it’s been in the planning for some time to build an assembly plant in SA,” he said.

The announcement comes at a time of increased interest in automotive investments into South Africa.

Toyota SA confirmed it was negotiating with the government to produce minibus taxis at its Durban plant. Calibra Motor

Denel, South Africa’s largest manufacturer of defence, security and aerostructures products, posted a profit of R111 million for the year ended March 31, after recording a gain from restructuring the group’s pension fund.

Last year Denel posted a loss of R246 million, the company said in a statement.

Denel CEO Talib Sadik said he was pleased with the results after the firm generated R178 million in cash from its operations.

“We are pleased with our results, in particular that the business generated cash from operations of R178 million, as compared to last year, when we utilised R344 million,” Sadik said. “Denel’s defence, security, certification and training clusters, which are profitable for the second consecutive year, generated normalised

Business

Business

Corporation wants to build a factory in Harrismith to produce taxis.

Ray said Tata would announce details shortly of its new South African plant.

“We’re very excited that it’s got to the point that it’s come to fruition. We’re on the doorstep of a major milestone.”

He would not comment on the size of investment or what the plant would be manufacturing.

Tata Motors specialises in manufacturing tough, low-cost commercial vehicles mainly aimed at developing countries.

Its main business in South Africa is a range of heavy, medium and extra-heavy trucks and commercial vehicles, and buses.

profits of R130 million and cash of R278 million, through improved programme management and cost savings.”

The Group’s Financial Director, Fikile Mhlontlo, added that the results had been influenced by “improved efficiencies, cost-containment exercises, improvement of financial performance by associates and significant once-off items”.

These once-off items included a R463 million accounting gain from the restructuring of the closed Denel Pension Fund, he said.

On Denel’s high debt levels, Mhlontlo explained that the funding balance remained stable at R1.85 billion, resulting in an annual interest charge of R118 million. “We are engaging the shareholder with a view to restructuring the funding balance in order to reduce the interest burden,” he said.


Strikes

A huge strike kicked off on July 11 and could soon see petrol stations run dry.

Workers from the Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (Ceppwawu) and the General Industries Workers Union of SA (Giwusa) are expected to down tools, joining the National Union of Metalworkers of SA’s (Numsa’s) strike.

The Fuel Retailers’ Association (FRA) said on July 11 that petrol stations may run dry as fuel workers embark on the countrywide strike.

“In terms of determining when it will run dry depends on how organised the strike is,” chief executive Reggie Sibiya said.

“But we are not going to see it today as most stations have stock.”

Sibiya urged motorists not to panic but be prepared for fuel shortages.

“Hopefully, unions and employers reach a speedy resolution.”

Workers are demanding a minimum salary of R6000 per month and a 40-hour working week.

The policy co-ordinator of Ceppwawu, John Appolis, said that hundreds of companies would be affected, including Sasol, Engen, BP, Caltex Refinery, Total, Adcock Ingram and Tiger Brands.

On July 4, about 170,000 engineering and steel workers from the National Union of Metalworkers of SA (Numsa), the Metal and Electrical Workers Union (Mewusa), the United Association of SA (Uasa), Solidarity, and the SA Equity Workers Association (Saewa) began striking.

They were demanding wage increases ranging from ten to 13 percent, and a ban on labour brokers.

Violence had erupted with one death and six injuries reported.

FUEL SHORTAGE LIKELY AS STRIKES BEGIN

CoAL TO RESUME VELE MINING AFTER GETTING

LICENSECoal of Africa Ltd (CoAL) will resume mining at its Vele project in South Africa after getting environmental approval for the venture, located near a United Nations World Heritage site.

The Australian-based company, formerly known as GVM Metals Ltd, is required to meet specific conditions at Vele because of the “uniqueness of the area,” it said in a statement, without giving further details.

The project is about 27 kilometres from the Mapungubwe Hill ruins, once one of southern Africa’s biggest settlements.

CoAL’s plans to mine at Vele have been opposed by groups including the South African Heritage Resource Agency and a South Africa-Botswana-Zimbabwe conservation body.

CoAL said the construction phase at Vele is expected to be completed within six to nine months from the restart date and will ultimately ramp up to an initial production profile of one million tonnes per annum.

“We welcome the decision…,” John Wallington, Chief Executive Officer of CoAL said in a statement.

Business


NEESKENS NAMED NEW SUNDOWNS BOSS

AIRPORT TARIFFS TO INCREASE

Dutch legend and former Barcelona assistant coach Johan Neeskens has been named as the new coach Mamelodi Sundowns.

Neeskens played in the great Dutch side of the 1970s, featuring in both the 1974 and 1978 World Cup finals.

He has 20 years’ experience as a coach, dating back to 1991.

From 2006 to 2008, he was the assistant coach at Barcelona and last year he was the assistant coach at Turkish club Galatasaray. He has also worked with Guus Hiddink, Frank Rijkaard and Ronald Koeman at national-team level.

Alongside installing Neeskens as coach, the Sundowns announced that they had signed five new players for the coming season.

Former coach Antonio Lopez Habas was shown the exit door at Chloorkop midway through last season and Caretaker boss Ian Gorowa went on to lead the side to a fourth-place finish in the league.

Neeskens’ football education is as good as it gets.

Airport tariffs will increase by no more than 37 percent in the coming three years, the regulator has said.

“There is no exact nominal amount... As regulator, we just discharge specific increases that needs to be implemented by ACSA (Airports Company South Africa),” said Regulating Committee member Unathi Mntonintshi.

“But in terms of the grouping of passengers, the groupings of the size of the planes and the different prices to be charged, Acsa will have that detailed information.”

Tariffs in the current financial year were at 35 percent and would increase to 37 percent in the next financial year, said Mntonintshi.

“It will come down again in the third financial year,” he said without giving more details.

He said what would come out of the increase was not linked to global standards.

When pressed for numbers, Transport director-general George Mahlalela said it was “almost impossible” to tell how much more a passenger would have to pay [per destination].”

The briefing followed a meeting between the department, regulators, ACSA and other representatives from the industry.

Mahlalela said they would review ACSA’s economic regulatory framework in order to facilitate predictable, transparent and balanced tariff determinations in the future.

He said his department, together with industry players, will have intensive and accelerated program in the next six months to address some of the gaps in the economic regulatory framework for airline industries.

“Moving forward it is also important to put in place new funding models for airports,” he said.

SportTravel


E x c l u s i v ei n t e r v i e w :

Excellence in service delivery will become the norm in Johannesburg says new executive mayor, councillor Mpho Parks Tau.By Ian Armitage

i n t e r v i e w :

MPHO PARKS TAU talks to South Africa Magazine

Delivering his State of the Nation Address in March, President Jacob Zuma said South Africa’s goal was “clear” - we want a country

with “decent employment opportunities,” he said, with “modern infrastructure and a vibrant economy and where the quality of life is high. We all have a responsibility to work hard to make this a reality.”

It is an ambitious goal and one that is shared by Johannesburg’s new Executive Mayor, Councillor Mpho Parks Tau.

Despite the critics (“The billing issue is the worst crisis to hit joburg since the turn of democracy and Tau was responsible for it. Yet the ANC think he is fi t to lead?” one South Africa Magazine reader said), mayor Tau is an optimist, hopeful and confi dent about the future of the city, believing that, going forward, “things can only change for the better”.

He is determined to prove any critics wrong.“Joburg will continue to revitalise itself,

boost its energy, regenerate its lustre, retain its magnetism and incredible vibe,” he says.

Tau began his fi ve-year term on May 19, the day after local government elections, and he was elected and sworn in as mayor on Thursday 26 May at the council chambers in Braamfontein.

He took over from Amos Masondo, who served for 10 years, and was the only Joburg mayor to have occupied offi ce for that long.

In his acceptance speech, Tau said he was poised to move the city on to a new developmental growth path. “It will not be business as usual,” he vowed.

He was willing to work together with all political parties and stakeholders, he said. “This will enable us to fi nd workable solutions for the diverse range of developmental challenges facing Joburg as we move towards our vision to become a world class African city.”

Tau said the city was listening “to the people” and that there had been “lots of complaints about local government”. He

City of Johannesburg FEATURE


MPHO PARKS TAU

is committed to addressing all of the city’s challenges, while building a local government that is more responsive, accountable, effective and efficient.

“We need to improve the performance of the management and staff as the organisation,” he said.

“By that I mean, we need to make sure that we improve accountability of the management, of staff and to ensure that everybody is held accountable for the work they are employed to do.

“The people of Johannesburg, clearly during the election campaign articulated to us quite clearly that they need value for their money. All employees of the city must work hard to make sure that we improve service delivery.”

Tau says going forward the city of Johannesburg approach was about consolidating the programme of transformation.

He also said that the city needs to look at the sustainable practices in relation to water, electricity and waste management.

“The city needs to improve repairs and maintenance of the infrastructure,” he said.

At present, 95 percent of Joburg citizens have access to basic services, including quality water, reliable electricity and decent sanitation, Tau tells South Africa Magazine.

He also says Johannesburg is a “desirable destination”.

“We transformed Johannesburg into a desirable destination for trade tourism and investment, a proud and successful host of major events,” he explains. “The task now is to build on Johannesburg’s legacy and take the achievements of the city to a higher level. According to the MasterCard survey released in July 2011, the City of Johannesburg is the third most visited city in Africa and the Middle



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Company name FEATURE

East and the most visited Sub-Saharan city, The MasterCard Index of Global Destination Cities ranks cities by their total inernaitonal visitor arrivals and the cross-border spending by the same visitors.

“I want to give the people of Joburg the assurance that we will not let up in our efforts to help create a better Joburg through the building of better communities.”

The city is currently embarking on a ‘90-Day programme’ – an Accelerated Service Delivery Programme – that is focused on “getting the basics right and sustaining it into the future”. Tau says it will run until September and is looking at issues of basic service provision such as potholes, faulty traffic lights, incorrect billing and insufficient enforcement of by-laws. “We are building our future on the successes achieved in the previous decade of democratic local governance including the stabilisation of our financial position, the development of as strong governance model, successful urban renewal projects in Soweto and the inner city and the implementation of flagship projects such as the Nelson Mandela Bridge and Constitution Hill,” Tau says. “But we also identified important challenges relating to service delivery, managerial weaknesses and long-term development programmes that must be initiated.

“For us to focus on the long-term and strategic imperatives we need to sort out the basis service delivery in the city and do so in a sustainable way.”

The city is putting in place a strengthened system of performance management for senior officials and will set ambitious targets and key performance indicators to ensure positive outcomes.

“We need to address the extreme inequalities in our society, create decent employment and restructure our economic base to meet the needs of all people in the city, especially the poor,” Tau adds.




As part of this Johannesburg has started a revision of its Growth and Development Strategy (GDS), aimed at addressing longer-term challenges facing the city, such as urbanisation; climate change; the sustainability of water resources; energy; and poverty and unemployment.

“This will require a radical change to our modes of operation, for example, a change in waste management processes to move towards a reduction and recycling of waste or the way the city procures services in the market,” says Tau. “The GDS revision will include a broad process of consultation with city stakeholders and outside experts, leading up to a city-wide Summit later in the year.”

Tau, it seems, wants what we all want: a prosperous Joburg.

“We need to take a fresh look at the GDS to ensure that its goals and directives still meet the needs of a dynamic urban

WORKFORCEIn 2009 The City of Johannesburg (CoJ) contracted The Workforce Group to manage their Job Pathways programme. Job Pathways is a dedicated welfare-to-work initiative, linked to the City’s Siyasizana Programme, which offers indigent citizens various social assistance benefits.

CVs are matched to various opportunities including permanent and contract positions, learnerships, internships, apprenticeships, EPWP and community work programmes as well and New Venture Creation (NVC) opportunities.

The NVC opportunity offers basic skills training which can be developed into a small , self-run business. The NVC model has afforded thousands of CoJ unemployed citizens a means of earning an income. Skills taught include: Nail Technician Techniques, Ethnic Hair and Eyelash Training as well as Beaded Jewellery making and cell phone repair.

Plans are in place for NVC phase 2 which will include learnerships, access to micro loans and skills training in the ‘Green’ industry space which has definite earning potential going forward.

Ruth Mabalane, Celiwe Hadebe and Lindiwe Mbanzena recently completed their Nail Technician training. At the time, all three were unemployed. For financial reasons, Celiwe and Lindiwe were unable to complete their high school studies. Since graduating from the NVC programme, both have started selling their services to family and friends and are slowly developing a regular client base. Both are planning to use the income they generate to finish their high school studies. Ruth lives with family in Dobsonville. She has designed a sign for her business ‘Ruth’s Beauty Salon’ which she hangs outside her house to take advantage of passing trade. Ruth is using the income generated from her business to help support her family.


“City Power Maintenance Award”“Professional Electrical Service Provider”

“Community Upliftment” “Business leaders in Industry”

“100% Black Economic Empowerment”

“Electrical Network Build and Maintenance”

www.nys.co.zawebsite location email

67 Stellar Ave, Crown Mines, Johannesburg, South Africa

[email protected]

Emerald Green Power (Pty) Ltd is a privately owned company servicing Johannesburg’s key electrical utility, City Power Johannesburg.The company specializes in Street Light and High Mast installation and maintenance, Network build and Upgrade as well as Metering Services.

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environment,” he says. “We will sit and we will talk to the residents of Johannesburg and we will have a meaningful conversation about the challenges in our city, such as possible water scarcity - expected demand will exceed supply shortly and how do we mitigate this; rising acid mine water tables in some parts of our city; potential dangers for our infrastructure; the shortage of landfi ll sites and what this means for our waste management practices; energy security and load shedding; the impact of climate change;

youth unemployment and youth development ; Infrastructure development and fi nancing ; poverty and under-development ; food security; HIV/AIDS and manageable diseases ; crime; and traffi c safety.

“We have a lot to discuss,” he adds. “We have also realised that the future sustainable development of the city requires a concerted effort from all those who have an interest in the future sustainability of the city of Johannesburg.

“Social partnerships with residents, communities, businesses, organised civil society,



We’ve introduced

programmes to address as many shortcomings as

we can

INDWE RISK SERVICESIndwe Risk Services provides risk and insurance solutions to the City of Johannesburg for the effective management of their Motor Fleet. Our service team has a collective experience of over 100 years in the field of insurance for municipal and public enterprises. We strive to provide the ultimate insurance experience for all of our clients and we are as passionate about their business as they are.

faith-based organisations and other spheres of government, are crucial to address these issues.”

The first draft will soon be released for public comment and consultation. The final document will be adopted for the next five years.

“As part of our commitment to inclusivity, we intend to embark on a broad GDS outreach process in order to allow all Joburg citizens to be part of future agenda setting,” Tau says. “We want to inspire our citizens and capture the imagination of everyone who calls Johannesburg their home. Through this process we will be bold and open about the challenges we face and work collectively to produce a strategy that is not only visionary and path- breaking but more importantly one that is realistic and implementable.

“This intensive city-wide public consultation process will run during the months of August and September 2011 culminating in a GDS Summit in October 2011.”

Tau is focused on ensuring improvement in the quality of services the city provides.

“We should ensure this through investment in repairs and maintenance of our current infrastructure,” he said in his first budget speech. “We also need to ensure that all employees in



SOUTH AFRICA MAGAZINE READER QUESTION

The city of Johannesburg introduced a ‘welfare to work’ programme in 2009 called Job Pathways. The idea was to create income earning opportunities not only in the traditional permanent and contract type positions but also through new venture creation, where unemployed candidates are taught a skills that they can translate into their own small business. Workforce has been successfully running this contract for CoJ for the past two years. Could you tell me more about the city’s job creation initiatives, and specifically about Job Pathways? Dawn, Johannesburg

The City of Johannesburg Job Pathways Programme has evolved rapidly, and is now entering its 3rd year, with 7500 placements made. The programme has compensated for the sluggish growth in new jobs by strongly promoting opportunities for the unemployed to start their own small ventures via quick turnover incubation programmes for everything from nail technicians to ethnic hairdressers to small cell phone service providers.

The programme is constantly experimenting and is now experimenting with the inclusion of micro-finance programmes for small ventures. Linkages to formal channels including internships and learnerships, and this has also been strong.

our city serve the people of Johannesburg, with honesty and diligence.

“We have focused extensive attention on recognising those areas of our work that need significant improvement, as well as developing concrete plans of action to ensure that our citizens continue to see visible improvements in their daily lives,” he continued. “We also acknowledge that fundamental transformation of the city depends on a highly efficient and functional environment. The approach adopted in addressing service delivery issues was to develop a comprehensive and integrated approach for each priority area.”

One of those priority areas, as anyone living in the city knows, is electricity. In recent weeks there have been several power outages in areas such as Observatory, Kensington and other areas in the north-eastern suburbs. The suburb of Noordgesig had a blackout that lasted for almost 33 hours, which lead violent service delivery protest.

“We will do everything in our power to ensure that electricity supply remains uninterrupted across the city,” says Tau. “We have also increased our response team’s availability on weekends so that there is no repeat of such incidents.”

Cable theft and illegal connections are the biggest contributing factors to power outages. Tau has promised to “crack down” on gangs operating to destroy infrastructure: “We will continue to pursue the representation made to the Minister of Justice by Mayor Masondo in April 2011, motivating for strong prosecution and sentencing of cable theft crimes,” he says.

For the next challenge let’s refer back to the angry reader who contacted us to say: “The billing issue is the worst crisis to hit Joburg since the turn of democracy and Tau was responsible for it. Yet the ANC think he is fit to lead?” Billing is a major problem. At least it was, says Tau. “We are all aware that the objectives of the Phakama Project were to redress historical anomalies in our revenue, billing and property value chain and



Tel: (27) 11 578-1700 Fax: (27) 11 974-5586

Email: [email protected]

EDISON JEHAMO POWER is a specialist electrical contractor providing quality construction and maintenance services to the electrical power industry throughout Southern Africa.

EDISON JEHAMO POWER an established and proven ISO 9001 – 2008 accredited business with a strong

emphasis on Health, Safety, the Environment and Quality.

EDISON JEHAMO POWER is experienced in the Construction of:

transmission overhead systems, from 132kV Lines up to 765kV Lines;

distribution overhead systems, from 11kV up to 88kV;

fibre optical installations of OPGW, ADSS, Sky wrap and associated equipment;

major energised and de-energised refurbishment projects on Transmission and Distribution Networks;

Railway Traction OHTE projects.

EDISON JEHAMO POWER has a substantial client base across SADC including State Utilities, Parastatals,

Municipalities and Mining Houses.

EDISON JEHAMO POWER an associate company of the EDISON CORPORATION, owned by Vivian Reddy, is

a 67% BEE Company, with a strong reputation for transformation and skills development.

Providing POWER FOR GENERATIONS.

N° IND97291

11 Foreman Street Spartan Ext 3, 1619

P.O.Box 893,Isando,1600

KELVIN CYDNA 88KV 1, 2, 3 & 4 LINE REFURBISHMENT

The refurbishment of the Kelvin Cydna 88kV lines was based on City Powers requirement to improvethe reliability and capacity of these lines from its current 100MVA to 200MVA per circuit. Thisrefurbishment had to be done under live line conditions as City Power was unable, due to thedemand on the line, to switch the lines off for the work to be carried out.

An initial assessment was first carried out to determine the condition of the four circuits runningfrom the Kelvin Power Station to Cydna substation. This included an assessment of the earthing,towers, existing conductor and fittings. Based on this assessment and City Power’s requirements anew conductor, being the Lisbon/TW from CTC was specified.

Edison Jehamo Power with the assistance of Allteck, a subsidiary of USA based Quanta Services, usedrobotic arms to remove the existing tower fittings, insulators and replace the conductor. A total of69 route km of conductor will have to be replaced, to date a total of 22km has been replaced withthe new conductor At no time while this work has being carried out has City Powers power supplyever been disrupted (as a result of the works).

POSITIVES: A local resource has been employed and has been trained on the principles of equal

potential zones and is assisting the live line crew with work in “close proximity”. No lost time incidents have been incurred on the project No electrical outage has been required for the work done to date No technical problems have been experienced on any of the sections that have been upgraded. An existing capital asset has substantially increased longevity and capacity.

to improve the customer experience,” he said in his budget speech. “We recognise that although the system has stabilised, there were a number of challenges post-implementation. We intervened and are beginning to see some results in areas such as query resolution and revenue collection.

“Although we are seeing progress, we remain extremely concerned about on-going billing challenges that impact on the quality of services that our customers are experiencing on a daily basis.

“It is not acceptable for people to wait long periods of time to have calls answered, or have calls dropped when they eventually get through.

“Managers and employees need to understand and appreciate the gravity of their actions or non-actions and the implications thereof at a much broader level. Some of these challenges are also gaining attention from quarters such as the Public Protector, the Consumer Council and the Auditor-General (AG).

“In fact a meeting in preparation for finalising the Auditor-General’s report, revealed some challenges which warranted our urgent attention.

“In this new term of office we commit to investing in interventions... Over the short- to medium-term, our focus will be on ensuring

that we become more responsive to our residents. This means that it cannot be business as usual. We have always said that the issue of systems are distinct from human errors. We will not tolerate incompetence.

“Our attitude to our management and employees is that of a partner in addressing these issues. We also extend a hand of partnership to communities and residents to work together with us in finding solutions and to help realise our objectives.”

Tau is committed to finding workable solutions for the diverse range of developmental challenges facing the city of Johannesburg.

“We are convinced that the city has a clear roadmap for delivery – both in the immediate and short term as well as in developing a process for long term development,” he concludes. “The city of Johannesburg is poised for an exciting new chapter in its history and let us all work together to help create a better Joburg through the building of better communities.” END



Contact us today:Tel: (011) 683-1546 Fax: 0865116290

E-mail: [email protected]@dev-tech.co.za

DEVTECH is an award winning wholly black owned power company that provides specialized services to public utilities & the private sector. The company was established in 2002 as an electrical contracting organization and has now grown to be entrenched in the construction industry.

We have a 100% black management team with extensive experience.

Our ServicesELECTRICAL BUILDING & CIVILS· Low, Medium & High Voltage reticulation · Paving·· Cable jointing & termination · Concrete slabs (RAYTECH trained & authorised personnel) · Schools· Domestic & Industrial installations · Certiicates of Compliance · Demand Side Management (including solar geyser installations & maintenance)· Public Lighting (Street Lighting & High Masts installation & maintenance.) · Transport & Rigging· Supply of FLUKE testing equipment

We are currently completing electrical projects for City Power Johannesburg, Lesole Civils CC and The Department of Education; and building projects for the Department of Public Works (Limpopo).

Mkhabela Huntley Adekeye Inc. (“MHA”) is a well-established black owned commercial law firm based in Johannesburg.

MHA has a long standing relationship with the MHA has a long standing relationship with the City of Johannesburg Metropolitan Municipality (the “CoJ”). We are proud to have been part of the change initiative within the CoJ. Amongst others, we have advised the CoJ on the legal issues to consider in developing various alternative service delivery mechanisms and played a critical role in the implementation of played a critical role in the implementation of Phase 1A of the Rea Vaya Programme.

Contact DetailsSwitchboard: +2711 783 8020Jackie Huntley +2782 772 4796

www.mhalaw.co.za


takes shapeS E A R D E L ’ S

T U R N A R O U N D

South Africa Magazine learns that Seardel continues to

make further progress on its turnaround journey.

By Ian Armitage

Seardel, the largest clothing and textile manufacturer in South Africa, is in the black for the fi rst time since 2007.

It is a great story and might well rank as one of the most impressive turnarounds of the past two decades.

“Progress has been made,” says Brett Smart, head of Seardel’s clothing division. “The turnaround follows restructuring that began in 2008, when the business was rescued by Hosken Consolidated Investments (HCI). HCI brought a 71 percent stake in Seardel – secured by underwriting a R300 million rights issue that fended off some very concerned banks.”

Seardel has made tough choices. It has closed divisions and retrenched jobs – it infamously axed Intimate Apparel, a division that made lingerie.

“The consolidation process is continuing; it will be complete next year,” says Smart. “There is now a clear vision. Seardel never had a clear consolidated clothing strategy. It was previously run as a decentralised concern. We don’t want to be a jack-of-all-trades and master of none.”

Despite vast improvements operationally, the clothing division remains a concern, under threat from customs fraud and competitors’ using non-compliant vendors in particular.

It makes it diffi cult to compete, says Smart. The Seardel group reported an 11.7 percent

rise in revenue to R2.4 billion in the year to March 2011.

Attributable profi t was R8.5 million from a previous loss of R203.4 million.

The clothing division reported a loss.“One of the biggest factors weighing on

the clothing operations is certainly customs fraud – goods either not declared or under-declared,” says Smart. “Customs fraud is a massive problem as illegal imports set the benchmark price with our customers.

“A 45 percent duty on imported garments exists to protect the local garment industry, but this protection is greatly diminished by

Seardel FEATURE


the levels of garments that arrive in retail stores without duties having been paid at all or reduced duties through the under-declaration of values. The result is the loss of many thousands of local jobs. I think more stringent policing and harsher penalties for breaking the rules are what’s needed.”

The clothing division reported a R21 million operating loss in the year to March. It was a vast improvement on the previous R26 million loss, however.

“We’ve introduced programmes to address as many shortcomings as we can, certainly that are under our control, including improving workfl ow processes to increase factory effi ciency,” adds Smart. “But we need to see meaningful changes to external factors, otherwise the apparel manufacturing operations will always remain under pressure.”

It will deliver huge cost savings, Smart admits, believing it has long been a struggle for the South African clothing industry to produce goods and get those goods into stores at a price that is remotely competitive to the price of imports from China, India, or any other low-cost country. “We are fi ghting back as best we can and have streamlined operations, investing in the right areas, while making sure the business runs as well as possible. We are vertically integrated with closer ties now to other parts of the business and we also have the ability to manufacture from our own fabrics which allows us to specially design garments to meet the needs of the market. That is a differentiator.

“I’ve been with the business 17 years and started with Prestige Lingerie in Durban; I worked in various positions until, 12 years ago, I was appointed a director of Dermar. That was the fi rst company I took on. It just skyrocketed from there. Seardel has clothing companies in Cape Town and KwaZulu-Natal. I took on each in KwaZulu-Natal for an amount of time – Durban Clothing, and SACI, etc. They were all put under the Prestige Apparel umbrella and there has been signifi cant consolidation of Seardel’s clothing companies, enabling


Seardel FEATURE

We’ve introduced

programmes to address as many shortcomings as

we can

LAYING MACHINE

· Lectra auto spreading machine

· Tension free laying

Laniicio Zignone Spa - Biella Italy Tel: +39 0157461.111 E-mail: [email protected] www.zignone.it

ZIGNONE IS A DYNAMIC COMPANY THAT BENEFITS FROM A YOUNG MANAGEMENT TEAM WHO BELIEVE

FIRMLY IN THE “MADE IN ITALY” CULTURE. ZIGNONE STRIVES CONSTANTLY FOR CREATIVE,

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BUTTON IMPORTER AND DISTRIBUTOR

· Established in 1995· Manufacturers of injection moulded

novelties and buttons.· Importers of polyester, metal, abs,

shell buttons.· Buttons to International standards.·· Full dye house.· Head Office and factory in Cape Town· Sales office in Durban and

Johannesburg.

the turnaround we have achieved, although there is still a way to go.”

Seardel has invested smartly in areas that had been uncompetitive, Smart continues. “As a company moving forward, we will continue to invest and look to design and develop product for specifi c end uses… as a business I think we have got great opportunities. We believe in doing the right runs, niche markets, working with the right retailers and looking for areas where we can add real value.”

Value comes from a high technical capability, vertical integration, the ability to perform quick turnarounds, and the number of different ranges, Smart says – Seardel Apparel has it all. “We are a one-stop shop, a major manufacturer of mens, ladies and childrenswear in South Africa and beyond. Our aim is to produce high quality garments at the right price.”

In the past year, Seardel, through Brand ID, has launched Love SA, a range of casual wear, and 46664, is a lifestyle range.

46664 was former president Nelson Mandela’s prison number when he was incarcerated on Robben Island.

The fi nancial results speak for themselves, although there is obviously a lot more to do. END


Seardel FEATURE

Menswear

Pattern Making

Kidswear

8 Pleasant Way,Athlone Industria,

Cape Town, South Africa7764

Manufacturers and Distributors of:· Plastic - Bags, Tubing, Sheeting, Shrink wrap

· EasiGrip bags (re-sealable bags)

· Pallet wrap

· Adhesive tapes - various

· Polypropylene - Bags, sheeting

·· Corrugated board and cartons

· Twines

· Aerothene

· Pizza and cake boxes

· Bubble wrap

· Strapping

· Hand and pedal sealers

·· Tape dispensers

Kelly Road, PO Box 14, Hammarsdale, Natal 3700Tel + 27 (31) 736 2171

www.coatssewingsolutions.com

ACA ThreadsSewing thread suppliers to Seardel Apparel Group www.acathreads.co.za


+27-21-9811133

ACA Flyer 2011.indd 1 2011/07/01 9:53 AM

CDFL fabrics are a vertical manufacturer of single jersey, rib, interlock and pique knitted fabrics, specialising in cotton, viscose, poly/cotton with spandex offering piece dyed, yarn dyed and prints in a variety of special finishes.

CDFL fabrics, represented by CDFL fabrics, represented by TEXEVER INTERNATIONAL, are proud to be associated with the Seardel group.

Please [email protected]

Tel + 27 (0)825705970for more information

38 www.southafricamag.com38 www.southafricamag.com

Each serving of creamy, delicious avocado offers nearly

20 vitamins, minerals and phytonutrients.

qualityWESTFALIA: A HERITAGE OF

fruits

39www.southafricamag.comwww.southafricamag.com

Westfalia is the largest avocado producer in South Africa and its Dusa clonal rootstock is exported worldwide.

The Tzaneen-based fi rm has more than 2,445 Ha of avocado, mango, litchi and citrus orchards, and produces value-added products like dried mango, avocado oil, guacamole and

fresh juice.With farms in Limpopo and one in KwaZulu-Natal, Westfalia is assured

of a range of climates in which to produce fruit.

“Westfalia is a multinational, vertically integrated, fruit and related fruit products supplier. We specialise in avocado and mango marketing, processing, and production,” the fi rm’s website www.westfalia.co.za says. “We market a wide range of mainly exotic fruits including mangoes, avocados, litchis

and cactus pear (prickly pear), as well as citrus fruit,

from our offi ces in the UK, the Netherlands, France and South

Africa. Westfalia primarily produces avocados and mangoes and citrus in

our own orchards in South Africa. Dried mango, avocado purée and avocado

oil are processed in our own factories in South Africa. “

Westfalia, a subsidiary of the Hans Merensky Group, has a foothold in the niche

organic avocado market in England and Europe.“Westfalia Estate is situated on the foothills

of the Drakensberg Escarpment near Tzaneen in the Limpopo Province,” the website adds. “This farm was home to Dr Hans Merensky and is the centre of Westfalia’s agricultural operations. It has been declared a Natural Heritage Site and is demonstrating the balance between indigenous forest (natural vegetation), sustainable agriculture and

Westfalia FEATURE

forestry – all the vision of the founder. For many years citrus was the main agricultural crop grown at Westfalia Estate. However, due to greening disease, citrus production was phased out, with the last trees being removed in the early 1960s. Since then the avocado has been the predominant agricultural crop grown.

“In the late 1980s, the Westfalia business interests were expanded to incorporate other sub-tropical fruit,” it continues.

The South African avocado production season ends mid-October, with the last fruit out of the market by late November.

Westfalia has Africa’s largest collection of avocado genetic material under evaluation, with new cultivars being added continuously. The 1,400 Ha, of which 429 Ha is organic, consists of Hass, Fuerte and Ryan cultivars, providing avocados from March to September. Westfalia imports around 40t a week from Spain from mid-November to February to fi ll seasonal gaps.

It has recently developed and released new early and late Hass-like varieties that will provide fruit outside of the traditional avocado


Westfalia FEATURE

Westfalia South Africa

has grown to form the centre of

one of the single largest avocado suppliers in the

world













season and its mango orchards represent a range of cultivars, including Tommy Atkins, Kent, Sensation, Keitt and Heidi.

“Westfalia South Africa has grown to form the centre of one of the single largest avocado suppliers in the world – Westfalia Fruit Products,” www.westfalia.co.za adds. “Westfalia is a multinational business, vertically integrated to supply fruit- and related products.

“Westfalia specialises mainly in avocado and mango production, as well as the processing and marketing thereof,” it continues. “Citrus, avocados and mangos are primarily produced in our own orchards in South


Westfalia FEATURE

Westfalia to be UC Riverside’s primary licensee for ‘GEM’ around the world

The University of California, Riverside, has signed an exclusive license agreement with Westfalia Fruit Estates to market ‘GEM,’ an avocado variety developed by UC Riverside researchers.

“UC Riverside’s Office of Technology Commercialisation continues to seek out the best partnerships worldwide for the commercialization of citrus and other agriculture varieties developed at our campus,” said Craig Sheward, assistant vice chancellor for technology commercialisation at UC Riverside, confirming the deal. “Westfalia is a leading multinational avocado supplier and a worldwide leader in avocado research, marketing, processing, production and commercialisation. It will

be through the future successful efforts of Westfalia that UCR’s avocado varieties will have an impact on the worldwide avocado market.”

Named after the initials of researcher Grey E. Martin, who selected the variety, ‘GEM’ fruit are produced on a semi-compact, vase-shaped tree. The fruit’s skin color turns from green (when on the tree) to a dark burgundy/black when ready to eat. The tear-drop shaped fruit are borne typically interior in the tree, mostly in clusters, thus protecting the fruit from the elements. The trees also are less prone to severe “alternate bearing” (abundant fruit one year followed by few fruit the next year) than ‘Hass,’ currently the dominant variety in the commercial trade.

Management ReportingOur constant reporting system between us and our clients helps us to identify potential problems which may arise so that counter measures can be taken. This allows us to give regular attention to our high service levels. We have found that with our current contractual clients that any level of change and innovation is a two way street where collective thoughts offered between us and our clients bear the most fruit. Our communication with clients is constant while our quality control staff monitors and tabulates our delivery times in order to supply accurate information to both parties and senior management. At HFR transparency goes all the way to the top.

Planning and ControlWe have a dedicated team of logistics controllers that are in constant communication with the drivers to ensure that they are always on route and on time. To aid them in their task, we use state of the art cellular and satellite technology to pinpoint the exact location of your cargo at any given time of night or day.

Whenever possible , our drivers stick to main routes and toll roads in order to save time and cut down on the wear and tear on our trucks caused by substandard roads.

Because we always know the whereabouts and estimated times of arrival off our trucks, customers can book in their loads as late as a day in advance. We will do our utmost best to ensure that a truck is available to pick up your cargo.

To counteract the fuel supply problem that many other carriers sometimes face, we have our own diesel reserves and pumps in Cape Town, Durban and Johannesburg and work on a cash-only basis for fuel in our depot’s as well as en-route.

FleetAt HFR, we take pride in serving our clients to the best of our ability and the top condition of our fleet serves as testimony to that. By keeping a standard fleet of top brands like Freightliner, Scania, International, Argossy, Thermo King, Carrier Transicold and Cummins we can ensure that parts are always readily available and our well maintained vehicles are always ready to roll.

Maintenance

At HFR our commitment to service excellence is more than skin deep. A truck will never leave the yard unless it is in a pristine condition and full pre-trip inspection is carried out. This keeps breakdowns to a minimum and keeps your cargo arriving on time. Our neat fully kitted state of the art workshop is well stocked with parts and highly skilled technicians that are accredited by the various original equipment manufacturers to perform warranty work and scheduled maintenance.

We have two dedicated breakdown vehicles on standby, every hour of the day, every day of the year. Since we run a fleet of new reliable vehicles from trusted manufacturers, we are also covered by their national network of their breakdown services and we’ll never leave your cargo stranded by the roadside. Should it take longer than four hours to resolve a problem, a new vehicle is dispatched to carry the load to its destination on time.

FMCG Standards

We comply with HACCP and PPECB standards for our prolonged involvement with the FMCG industry.


Africa. Related products, which include avocado oil and guacamole, fresh juice and dried mango – are processed in the Westfalia factories. Westfalia is a respected role-player in the different industries in which it operates. We therefore acknowledge that, as an organisation, we have towards our clients, employees and shareholders, and also to the greater community.

“Westfalia is recognised as a leader in growing, processing and marketing a range of quality products. These are produced under commercially sustainable and environmentally sound practices, through the application of research and development. Furthermore, we are acknowledged as a company with a social conscience and integrity in all our dealings.”

Research and development is an integral part of the company’s operations, marked by constant development of improved cultivars and farming practices.

“As a dedicated supplier, Westfalia

understands and leads our customers through our commitment and a deep knowledge of our products and services, and the world we live in,” Westfalia’s website adds.

“Westfalia offers a range of superior quality dried fruit products. Dried mangos are complimented by other product lines. These dried products have no added sugar and are provided in a preserved or unpreserved form. Organic dried fruit is also offered as an enhanced value product,” it continues.

The Westfalia Nursery situated at Westfalia Estate, is the leading nursery of its kind in South Africa. It is dedicated to the production of high quality trees and is committed to research and development. The nursery is a major supplier of superior avocado trees to the agricultural sector, producing over 100,000 trees per annum for Westfalia Agribusiness, as well as other growers, both nationally and internationally.To learn more visit www.westfalia.co.za. END


Westfalia FEATURE

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powerhouseA g r i - b u s i n e s sZ a m b e e f :

Zambeef is one of the largest agri-businesses in Zambia and is a national, as well as African, success story.

The company began life as a small butcher shop in the capital, Lusaka in 1991.

It has since grown to become one of the biggest food production businesses on this continent.

And it produces just about anything.Place “Zam” in front of just about any food product,

and there is a pretty good chance Zambeef Products PLC is making it.

Unsurprisingly, its tagline is ‘Feeding the Nation’.“We are one of the largest agri-businesses in

Zambia,” Justo Kopulande, Zambeef Product’s head of public relations told a South Africa Magazine researcher.

Zambeef FEATURE


South Africa Magazine goes to Zambia and learns more

about Zambeef, the country’s agri-business powerhouse.

By Ian Armitage













Zambeef is a real giant, involved in the production, processing, distribution and retailing of beef, chicken, pork, milk, dairy products, eggs, edible oils, stock feed, flour and bread.

It also has large row cropping (maize, soya beans and wheat) operations, with around 5,000 Ha of row crops under irrigation and 1,500 Ha of rain-fed/dry-land crops available for planting each year, according to the company’s website.

Zambeef is in the process of rolling out West Africa expansion in Nigeria and Ghana too, in conjunction with Shoprite, as well as a palm project within Zambia.

“Those are certainly the big developments,” Kopulande said.

Zambeef’s financials are impressive. It had annual revenues of ZMK770.5 billion (US$162 million) for the financial year ended 30 September 2010.

“We have one of the leading distribution and retail footprints in Zambia,” Kopulande added.

Zambeef currently operates 87 stores under the Zambeef banner and 20 in-house butcheries in Shoprite supermarket outlets in Zambia, while it has seven of its own fast food outlets under the brand Zamchick Inn.

It operates two in-house butcheries in



Zambeef FEATURE

Shoprite outlets and four stores under the Zambeef banner in Nigeria and a further two in-house butcheries in Shoprite outlets in Ghana, Zambeef’s website says.

NIGERIAN EXPANSION In Febuary Zambeef announced it had invested US$10million at a farm at Ikenna, 80km from Nigeria’s capital Lagos.

It includes a meat processing facility and soybean farming.

“We have already developed a supply chain in Nigeria over the past two years,” Kopulande told our researcher. “Nigeria is important to us going forward.”

What Zambeef has been able

to do in Nigeria in a very short time frame

is nothing short of a miracle

Zambeef’s road to Nigeria began in 2009, after Shoprite had expanded into the country from the supermarket chain’s base in South Africa.

Zambeef operates Shoprite stores in Zambia, and the chain wanted to use Zambeef as a supplier and to staff Shoprite butchery counters in Nigeria.

Zambeef has invested around US$2 million in Nigeria and plans to invest a further US$8 million over the next

eight years to hire staff, open more Master Meats shops and use the Ikenne farm as a hub to supply neighbouring countries, its website says.

Zambeef predicts revenue will more than double in Nigeria by year-end.

“What Zambeef has been able to do in Nigeria in a very short time frame is nothing short of a miracle,” Gerhard Fritz, Africa operations manager for Shoprite, was quoted as saying recently.


Zambeef FEATURE

Zambeef remains

committed to developing

its palm plantation

Privately owned Zambezi Ranching and Cropping, Zambia’s largest mixed farming operation, has a cattle herd of 10,400. During the 2010/11 season we supplied 2,225 head of cattle and around 900,000 broilersbroilers to Zambeef. With annual revenue in the region of K770.5 billion, Zambeef is the largest agri-business in Zambia.

Zambezi Ranching and Cropping currently Zambezi Ranching and Cropping currently employs 2,500 workers and 14 managers who are all responsible for running their own farms. We support local agriculture by supplying a self contained clinic for workers as well as local neighbouring farms, supporting local schools and sporting events.

We do not just supply animals, but also crop We do not just supply animals, but also crop tobacco, wheat, maize, seed maize, soya beans, potatoes and onions. Zambezi Ranching and Cropping has a SILO storage, a handling and drying facility, with a capacity of 9,000 tonnes. We currently irrigate 1,200 hectares in winter and supplement 1,500 hectares in summer.hectares in summer.

Zambezi Ranching and Cropping is situated in Chisamba, Zambia - 28kms north of Lusaka International Airport.

For more information on how we can supply for your business, please contact:

Telephone/Fax: + 260 211 840349

Email: [email protected] /

[email protected]

Private Bag 583X, Ridgeway, Lusaka,

Zambia Penyaonse Farm, Chisamba,

Zambia


Zambeef FEATURE

PALM OILIn January Zambeef announced plans to boost its palm oil plantation in Mpika.

It is a signifi cant move for the fi rm, according to Kopulande. Zambeef said it will invest US$2.5 million in the palm plantation in Mpika, which when in operation would be the lead exporter of crushed palm oil in the region.

In a statement, Zambeef CEO Francis Grogan said that the 20,000 Ha plantation – which was launched in 2008 – would be boosted further to make it achieve its potential and produce the long-term benefi ts.

“Zambeef remains committed to develop its palm plantation,’’ he said.

Zambia is among the largest importers of palm oil from Asia, with Zambeef importing large quantities from Malaysia, which it uses in its limping unit at Zamanita, he added.

To achieve a healthy crop yield, Zambeef has engaged palm experts from Palm Oil Technology of South Africa, one of the leading palm consultants in the world, said Kopulande.

Zambeef’s subsidiary, Zampalm Limited, has already planted the fi rst 3,000 Ha of palms.

“The palm oil project will not benefi t Zambeef in terms of exports, but would also play a key role in our

ZAMBEEF AT A GLANCE

Zambeef Products Plc is one of the largest agri-businesses in Zambia and the West African region, involved in the production, processing, distribution and retailing of beef, pork, chickens, eggs, milk, dairy products, edible oils, flour and bread throughout Zambia and West Africa. The company is also one of the largest cropping operations in Africa with 5,000 Ha under irrigation of row crops. The Group is in the process of rolling out a palm plantation. Zamleather Limited, a wholly owned subsidiary, is involved in the tanning of hides for export to the Far East and Europe as well as the production of finished leather, shoes and industrial footwear, mainly for the domestic and regional markets. The company is headquartered in Lusaka, Zambia.

CEO:Francis Grogan

Financials:Year over year, Zambeef Products Plc has been able to grow revenues. It has also enjoyed bottom line growth.

Palm Plantation:Zambeef has planted the first 3,000 Ha of palm as part of pilot phase. Upon verification of fresh fruit bunch yields, this will be expanded to 20,000 Ha. Growth in West Africa: Zambeef expects strong growth in West Africa with new outlets due to open and thecompletion of the new pork processing plant in Lagos. Further opportunities exist to replicate the Zambian growthmodel in Nigeria, commencing with Zambeef leasing 500 acres North of Lagos to commence beef abattoir andpoultry operations, the company says.


Zambeef FEATURE

business,” Kopulande said. “Palm oil will play a key part in our future,” he added.

AIM LISTINGZambeef recently became the fi rst Zambian company to list on London’s alternative investment market (AIM), raising US$55 million in total in conjunction with a domestic rights issue.

It listed just weeks ago and the listing is seen as an indication that local companies have the potential to penetrate the international market – Kopulande told our researcher that it is a sign that Zambia has an ability to penetrate more international markets.

“We are becoming a more global business, yes,” he said.

The US$55 million raised via a listing on AIM will be used to bankroll the acquisition of ETC Bio-energy Limited, which the fi rm bought at US$45 million in a transaction completed in June.

According Kopulande, the acquisition of ETC Bio-energy Limited will lead to Zambeef controlling almost 100,000 Ha of farmland in Zambia.

The three farms which form the deal – Nampamba, Chambatata and Kampemba Farms on the Zambian Copperbelt – extend over a total of more than 46,000 Ha.

The acquisition of

ETC Bio-energy Limited will lead

to Zambeef controlling

almost 100,000 Ha of farmland

in Zambia

We have Fresh Kariba Bream from the mighty Zambezi!

We are proud to supply Kariba Bream, a delicious fresh water We are proud to supply Kariba Bream, a delicious fresh water fish. Farmed through sustainable farming methods, the fish are

fed on a vegetarian diet with no stimulants on antibiotics. We sell within South Africa aswell as the UK. Our offices are based in

Lusaka and Harare. To discover how we can supply your business, please see our website or contact us.

Visit us at:4th Floor, 101 Union Building101 Kwame Nkurumah AvenueHarare, Zimbabwe

Call: 00 263 4 707313 or 00 263 4 792583

www.lakeharvest.com


Zambeef FEATURE

“These assets will provide the Group with the agricultural throughput for its processing operations which the board believes should generate additional value and higher margin whilst reducing impact of the volatility of commodity price fluctuations and an erratic supply chain on the Group,” CEO Francis Grogan said in a statement following the firm’s AIM listing.

He added that Zambeef Group had raised US$54.97 million in aggregate by way of both a rights issue of 33,558,580 new ordinary shares to existing investors via Lusaka Stock Exchange (LuSE).

“We are delighted that the AIM flotation has been completed successfully and with such high investor demand for Zambeef shares,” Grogan, who is also co-founder of Zambeef,

said. “We now look forward to working with our new and existing shareholders whom we would like to thank for their ongoing support as we continue to grow and expand.

“The growing demand for agricultural products and consumer goods in sub-Saharan Africa together with the increasingly stable political climate in the countries in which we operate creates an exciting platform on which Zambeef can thrive.”

Zambeef’s goal is to increase efficiency and capacity in its primary production facilities, ensuring it remains a low cost protein producer in the region. It also wants to expand its retail and wholesale distribution channels in order to “increase market penetration in the region”.

To learn more visit www.zambeefplc.com.END

The QK Meats Group established in 1991, with its headquarters located in Naas Ireland. QK Meats S.A. is the newest addition to the Queally group of companies. It has the largest de-boning and retail packing facility on the continent of Africa.Our Products / Services include:• Beef, Lamb & Pork De-boning • Retail Packing: Beef, Pork, Lamb & Chicken • Manufacturing of Fresh & Frozen Meat ; IQF Mince / Dice – Beef, Pork, Lamb, Chicken • Cooked and Dried Meats • Cooked Beef, Pork and Lamb • Trading and Cold Storage around Europe and in Sth Africa. • Manufacturing of lean proteins and edible oils (beef and poultry – fresh and frozen) for processing industry. • Poultry MDM, Chicken Backs and Necks.

QK Meats offer a service of frozen meat from Europe, and fresh and frozen from South Africa to all African Countries.

Address:The Maudlins, Naas,Co. Kildare,Ireland

10 Niehaus Street, City Deep , 2001 City Deep , 2001 Johannesburg , Sth Africa.

Contact:Tel: +353 45 876633Fax: +353 45 874918+353 45 874918Email: [email protected]

www.qkmeats.com

THE MAGAZINE FOR THE GLOBAL SOUTH AFRICAN.

To advertise with us, please contactAndy Ellis:

TEL: 00 44 (0) 1603 343367EMAIL: [email protected]

www.southafricamag.com

BOSSPEOPLE CULTURE TRAVEL PROPERTY BUSINESS WINE SPORT ENTERTAINMENT

Tri-Nations preview

2011 Tri-Nations series will

start on 23 July, as Australia

host the Springboks in Sydney

Kevin Anderson: Giant in the Making

South African tennis star Kevin

Anderson is set to cause a few

upsets at WimbledonRoll out the barrel

Oak Valley’s wines have

consistently been rated 4-stars or

better in the Platter wine guide

Avellini BrosWe visit KwaZulu-Natal-based

Avellini Bros, a structural

steel specialist

ISSUE 15 R40.00

T H E

Nissan South Africa’s managing director

Mike Whitfield on the auto giant’s future

and plans to double new car salesBOSS




Kevin Anderson: Giant in the Making

South African tennis star Kevin

Anderson is set to cause a few

upsets at WimbledonRoll out the barrel

Oak Valley’s wines have

consistently been rated 4-stars or

better in the Platter wine guide

Avellini BrosWe visit KwaZulu-Natal-based

Avellini Bros, a structural

steel specialist

BOSST H EBOSSNissan South Africa’s managing director

Mike Whitfield on the auto giant’s future

and plans to double new car sales

Tri-Nations preview




ISSUE 15 R40.00


FleetAfrica is a leader in the fleet management and full maintenance leasing industry.

By Ian Armitage

Fleet outsourcing M A D E E A S Y

outsourcing M A D E E A S Y

outsourcing

The benefits of outsourcing your

fleet are clear and the theory simple.

If something isn’t your area of expertise, then get in expert help from outside to do it, pay for what you need, and avoid the costly long-term management issues of having additional in-house staff focusing on non-core business issues. Indeed, partnering with the right service provider will lead to cost and operational efficiency gains and allow you to focus on your own areas of expertise, which, in turn, means improved business performance.

“At Fleet Africa we strive to provide our customers with customised value-based fleet management solutions. We are a one-stop solutions/service provider, integrating all fleet logistics and related supply chain activities for

FleetAfrica FEATURE


all target markets/segments at local, provincial or national government level, as

well as in the private sector. Our solutions are designed to be flexible and scalable, to suit our client requirements… delivering cost efficiencies and integration into the client’s value chain,” says Kamogelo Mmutlana, CEO, FleetAfrica (Pty) Ltd.

Mmutlana says that FleetAfrica is a “specialised fleet management company” at the forefront of the full service leasing industry in South Africa. A typical FleetAfrica customer is a “big fleet owner” and the firm has some notable success stories, like the City of Johannesburg.

“We manage some of the largest fleets in the country for government, parastatal and private-sector companies. We currently have more than 46,000 vehicles under management, ranging from motorcycles and cars to materials handling equipment, waste compactors, fire engines, and ambulances.

“Within our fi rst few years of operation we secured the then largest government fl eet outsourced contract, City of Johannesburg,” Mmutlana says. “When we took on that contract, they had approximately 7,000 vehicles with an estimated 40 percent utilisation. Through our engagement, we were able, within the fi rst three years, to rationalise to about 4,500 vehicles and achieved improved utilisation of about 98 percent and average availability of 95 percent.”

Another success story is the R146 million per annum contract with the Eastern Cape provincial Department of Transport, which outsourced vehicle

management to FleetAfrica in 2003.

”What is our value proposition? One-stop shop solution, incorporating the specifying of vehicle models, procurement, licensing and registration, vehicle in built programme, management of fuel, insurance, utilisation, maintenance and services, contract compliance, defl eets, replacements and disposals of out of contract vehicles,” Mmutlana says.

According to Mmutlana, FleetAfrica has achieved signifi cant savings and improved service offerings for Government through the management of those contracts. Economies of scale play a major role in


FleetAfrica FEATURE

Our solutions are designed to be flexible and

scalable, to suit our client

requirements

We Repair & Service All makes of Trucks, Trailers & LDV’s

24hr Breakdown : 0732185711 - Phone: 043 7363332 Email: [email protected]

www.vsctruckdieselrepairs.yolasite.com

what FleetAfrica is able to offer. “We are focused on acquiring big fleet clients similar to City of Johannesburg and Eastern Cape Provincial contract, as well as big corporate clients such as Premier Foods, South African Post Office, Nampak and GM,” says Mmutlana.

Of course, these have been challenging times. But FleetAfrica is doing well. “The business has performed well under some obviously trying conditions. We’ve managed to successfully mitigate most of the risks and still post good results,” Mmutlana explains.

He says some disciplined new operating procedures and efficiency measures have helped in terms of performance. “We had to focus primarily on our older fleets whose contract terms were due to expire, and on how to best dispose and/or leverage any potential second economic life opportunity of these assets. We exploited these through refurbishment of specialised vehicles and sub-assets, as well as intra contract fleet exchanges, enhancing our revenue and margin opportunities, and

additional cost and operating efficiencies for our clients in return.”

FleetAfrica has also been working smarter, negotiating better terms with vehicle manufacturers, related suppliers and specialist body builders, for instance, and looking for alternative funding solutions.

“On another level, we’ve had to be very vigilant on how we manage insurance and abuse of vehicles by drivers. Utilisation of smart technologies and use of telematic solutions like vehicle tracking has been invaluable.”

What differentiates FleetAfrica from the rest is the sheer depth and size of its offering. “Customers value the services we offer and rely on us as a one-stop shop, getting their fleet management needs serviced in one place,” says Mmutlana. “It is a tangible advantage.”

Continued service and product innovation, as well as market expansion, are underway, and expected to add to FleetAfrica’s growth and performance into the coming years, Mmutlana concludes. END


impress


D R E S S T O

I f you have dined out recently, chances are you visited a restaurant whose employees were clothed by Chef Works, a global brand with roots that date back

more than four decades to South Africa and a company called Gross & Co.

Chef Works provides jackets, aprons, hats and trousers designed for chefs and kitchen staff, and other restaurant employees.

Products are sold in over 30 countries.

There is more to Joburg based Gross & Co than helping chefs to impress as South Africa Magazine discovers.By Ian Armitage

impress


I f you have dined out recently, chances are you visited a restaurant whose employees were clothed by Chef Works, a global brand with roots that date back

more than four decades to South Africa and a company called Gross & Co.

Chef Works provides jackets, aprons, hats and trousers designed for chefs and kitchen staff, and other restaurant employees.

Products are sold in over 30 countries.

There is more to Joburg based Gross & Co than helping chefs to impress as South Africa Magazine discovers.By Ian Armitage

Gross & Co FEATURE

“We are listening to what the mining industry needs,” says Fourie. “Over the years, we have been very strong into the export market because of the

success of Chef Works, Now, while we are obviously continuing to drive the Chef Works brand forward, we are looking at strengthening our position locally, here in South Africa. What we have done with the mining

“Chef Works is a specialist solution for the kitchen,” says the managing director of the company’s South African operations, Tony Fourie. “The brand is the fashion leader in terms of chef clothing around the world. It is highly innovative.”

Innovation is behind the success of Chef Works, which has grown to become the leader in the culinary apparel industry worldwide.

“Chefs used to be given basic garments, which were not necessarily comfortable. We listened to the needs of chefs, and created a range that used cotton and poly-cotton fabrics and a cool-vent design to make clothing that was durable and comfortable,” Fourie says.

The clothing is fashionable, provides great value for the money, and can be customised with in-stock items or made completely from scratch.

“Innovation is behind the success of Chef Works, and Gross & Co. for that matter,” Fourie continues. “Gross specialises in chefs clothing but we are also industrial protective workware and corporate clothing manufacturer. The fi rm was formed by Joseph Gross in the 1960s when he launched his work apparel sales and manufacturing business and today, with his fi ve sons on four continents, clients across the world benefi t from our long-standing commitment to providing high quality clothing and superior service.”

Together with Joseph’s son Alan Gross, Fourie and all those who work for the company in South Africa continues its core mission - “the creation of a dynamic company with the most talented, most motivated people working together in order to achieve excellence in industry by truly caring for our employees and our clients”.

“We take great pride in having developed the world’s most trusted culinary apparel brand in Chef Works,” Fourie explains. “We’ve done so by working alongside each and every client and by understanding their unique needs. Today, our stylish, comfortable, durable clothing is worn by the world’s leading chefs and institutions and is distributed in over 30 countries.

“What we aim to do now is carry that success over into key South African markets like mining, where we have had a presence but see a bigger potential.”

Gross & Co. has a range of new products, developed over the last three years, and designed with the mining industry in mind.


On top of selling

garments, we have a special laundry service that we offer clients

industry specifically is take existing product – much like we did with Chef Works – and brought a fresh approach to it. We’ve taken workware and made it more attractive, high quality – we don’t want to just produce the cheap, plain and standard uniforms; we are adding value, creating fashionable garments, providing great value for the money, and offering product that can be customised with in-stock items or made completely from scratch.”

One new product, aimed at the mining industry, is a boiler suit with elbow pads and kneepads sewn in.

“The mining industry is demanding,” Fourie says. “Typically the existing products in the market have a short lifespan, such is the environment. Traditionally,

manufacturers would produce standard workware, which was cheap. We are thinking differently. What we have done is created a high quality product that is extremely durable, safe and long lasting; it is a product with kneepads sewn in – that is unique. It means you can’t lose the pads and you don’t need to continually buy new ones or new gear.”

That particular product has been selling well into the industry and it has been warmly received.

“We are happy with the progress,” Fourie says.

To purchase Gross & Co product, customers go through the company’s website, by phone, or through distributors.

“We have 15 sales reps around South Africa and some 12 agents,” Fourie says. “We also have around 75 distributors in South Africa as well as distributors in Zambia, Namibia, Tanzania, the DRC, Zimbabwe, Mozambique and Angola

“On top of selling garments, we have a special laundry service that we offer clients. What we do is

charge per wash. It is a service popular in the food service industry where they need clean garments every day.”

Fourie says the fi rm is also in the process of opening franchise stores around the country – as a matter of fact, an outlet will be open in Angola soon.

“This is an interesting development,” he explains. “They buy into the business and have an interest in it succeeding. We have a number of franchise interests at present, and look forward to opening many more over the next couple of years.

“We have two stores in regional shopping centres which are proving to be very successful and we are about to open a third franchise store.”

This is all about increasing visibility, he adds.


Gross & Co. FEATURE

We are offering new, high quality and

stylish options


“We are looking to expand and have decided to be more aggressive. We’ve increased our advertising, increased our exposure, and increased the visibility of the product.

“Safety gear is actually a bit of a grudge purchase. When people come to buy it they are generally aggravated that they “have to” and any price is expensive. So adding value is extremely important. We have to demonstrate the benefits of our garments.

“Interestingly, during the downturn, we found inquiries increased and so did orders,” Fourie continues. “During tough times people have been buying quality, quality that lasts. Before the climate changed, industry was happy to buy cheap and if it fell apart, it fell apart; this changed and it is no longer an option – they want product that will last.”

The future is bright, Fourie says.“We believe in our business. Chef Works

has opened our eyes and has helped us rethink our approach to other industries. We are offering new, high quality and stylish options. The quality we offer the South

African market is the same as we offer Europe, America and the rest of the world. We know our products will last.”

With local manufacturing, fabric stocks, and control over distribution, this is the time for growth.

“What we were doing is distribution, manufacturing, holding stock, selling direct to end user, selling to retailers, - in actual fact we were doing everything for everybody,” Fourie says. “We have reviewed the business and reeled things in. We have decided to focus on what we are good at, which is managing the product itself and ensuring quality. At the end of the day our quality is what sets us apart.

“It is an exciting time for J Gross & Co.,” he concludes. “Chef Works is doing wonderful things and we are expecting a lot out of the new range of safety gear. Remember too, we also serve the hotel industry, and produce medical scrubs.”

To learn more visit www.gross.co.za. END

The Coca-Cola dome, one of the most spectacular of international events venues, is drawing some of the biggest names and occasions

to Johannesburg.They call it ‘The People’s Venue’, 35 minutes

from the O.R. Tambo International Airport; it is a world of versatile spectacles in the most fl exible entertainment space in all Africa.

Sir Elton John and Rod Stewart; Cirque du Soleil; Celine Dion; even South Africa’s best Extreme Fighters have all booked in, together with shows and events celebrating the best in wine, boats, high fashion and gardening serenity.

South Africa Magazine catches up with the Dome’s managing director Carol Weaving (CW).


By Ian Armitage

W H E N IN DOME:

WITH THE COCA-COLA DOME’S C A R O L W E A V I N G

Carol Weaving, managing director

&W H E N &W H E N IN DOME:&IN DOME:&Q A&Q A&

WITH THE COCA-COLA DOME’S C A R O L W E A V I N G

Q: The dome was recently announced as 19th in Pollstar’s worldwide arena venues chart based on ticket sales for the fi rst quarter of 2011. Has this enhanced your reputation for hosting world-class events? How so?CW: Without a doubt, yes. The Coca-Cola dome is increasingly known as South Africa’s top indoor entertainment and concert venue, regularly attracting famous international artists and performers. This announcement shows that we can compete with the best in the world and we plan to push up this ranking even further in the future.

Q: Has 2011 been a good year, so far?CW: Indeed it has. Despite the economic recession we continue to attract world-class acts, such as the Cirque de Soleil. The Coca-Cola dome is also a popular venue for trade and consumer exhibitions, most of which are scheduled for specifi c times each year.

Q: For 12 years in a row the Coca-Cola dome has been voted Johannesburg’s best concert venue in the Leisure Options Best of Johannesburg Readers’ Choice Awards. What does this tell us about the venue? Are you synonymous with the best concerts in Joburg?CW: This award is based on readers’ votes, so this tells us that the Coca-Cola dome is extremely popular among the people of Johannesburg – and consistently so. The venue is so established that people almost assume any major event will take place there.

We regularly attract top international acts. The Coca-Cola dome is most defi nitely synonymous with the best concerts in Johannesburg.

Q: In terms of what’s coming up, what do we have to look forward to?CW: Lots. We have WWE World Tour 9 and 10 July, James Blunt on 26 August, The Getaway Show from 2 to 4 September, Good Food & Wine Show 22 to 25 September and at least another 20 major events or exhibitions until the end of 2011.

Q: What have been some of the highlights of this year so far?CW: We had a fantastic start to the year with Rammstein live in concert and Cirque du Soleil Saltimbanco where more than 73,000 people attended over the two-week duration

of the production.

Q: We had the pleasure of attending the closing concert of the World Cup at the dome. It was fantastic…CW: The World Cup itself has been described as the greatest show on earth, so it was truly a privilege for the Coca-Cola dome to host the closing concert. The broadcast exposure was huge. Local artists performed with superstar Andrea Bocceli and it was one of the most high profi le events that have ever taken place at the dome.

Q: What defi nes the dome as a venue… and tell us about its ‘wow’ factor? CW: The dome’s main defi ning factor is its versatility. It is suitable for exhibitions of various sizes, for concerts, special events such as product launches, conferences and banquets – large and small. It also has a very effective management team which clients fi nd easy to work with.

Its ‘wow’ factor is surely its unusual shape, which can be seen from far, from many parts of


It is also one of the most flexible entertainment

spaces in Africa and is truly

unrivalled in its capability to host

any event

Coca-Cola Dome FEATURE

Johannesburg. It is also one of the most fl exible entertainment spaces in Africa and is truly unrivalled in its capability to host any event.

Q: How would you sum up the current state of the events and exhibition industry? CW: It has defi nitely not escaped the worldwide economic recession. Although our solid reputation has stood us in good stead, we’ve had to sharpen our pencil, so to speak, to remain competitive. The Coca-Cola dome remains one of the top performing venues in South Africa.

Q: What are your plans for the future? CW: We were recently appointed as commercial managers of the Moses Mabhida stadium in Durban, where we plan to increase the number of high profi le events being held there. In the future we plan to extend our reach in South Africa in terms of venue or facility management even further.

We also plan to increase our footprint in the rest of Africa, where the exhibition market is growing. We were recently appointed as the venue managers of the Abuja International Exhibition Centre in Nigeria, which is currently under construction.

Our vision for the Coca-Cola dome is to continue to be one of the best concert venues in South Africa, increasing visitor numbers and improving our service offerings even further. We currently hold the management contract for the Coca-Cola dome until 2019.

Our main focus for development is to bring more international concerts and exhibitions to the dome, increasing the international footprint of the venue. We are also expanding our ‘greening’ initiatives to become even more environmentally friendly in our operations, and to intensify our corporate social investment programme.

Q: Finally, is there anything you’d like to add?CW: Nearly 650,000 people visit the Coca-Cola dome each year, so we must be doing something right! END


Coca-Cola Dome FEATURE

JUST SETS Just Sets is one of South Africa’s well known Theatre Construction Companies, member of the TPSA. We pride ourselves on assisting our clients with exceptional service and outstanding standards that simply make everyone’s life easier.

We specialize in the sale/rental of: · Staging

· Curtains

· Custom Exhibition Stands

· Revolves / Turntables

· Hydraulic Lift Platforms

· Carpet Hire

· Dance Floors

· Kabuki Drops

We cover our clients’ needs in Event Planning and Theatre Productions. And if you think it is impossible to do, come to Just Sets where we construct from an Idea to a Reality.

Lucidity is a specialist technical production and audio visual equipment rental company

and offers a full technical solution to the corporate and live events industry.

Lucidity is a BEE Level 2 Contributor

www.lucidity.co.za

011 894 5581For more informationwww.safetysail.net

“Never Sleeps”

Need to protect your show stand when you are not there? For peace of mind at an

affordable cost, Safety Sail has been the preferred choice of discerning exhibitors and organizers for more than 12 years.


DB Schenker has a very simple understanding of teamwork: You take care of your core

business; they’ll take care of the supply chain of your business.

O F Y O U R B U S I N E S S

D B S C H E N K E R : T H E

supply chain side

© Deutsche Bahn AG

O F Y O U R B U S I N E S S

Most businesses today are either outsourcing certain functions or considering it.

Outsourcing however is a major decision, and the benefi ts can be diffi cult to defi ne.

The benefi ts discussion typically centres on cost cutting. Outsourcing has been sold by the market as a way to cut costs, by reducing overheads and by having a professional perform the operation. While this is true, it is not the only advantage and should not be the only reason a company decides to outsource.

The benefi ts of outsourcing can be divided into two types: there are the direct benefi ts – those that have an immediate impact; and then, there are the indirect benefi ts – the impact that outsourcing has on the processes that have remained in house.

“As a supply chain specialist, we don’t simply move your goods,” DE Schenker says. “Instead, we execute your supply chain using a broad spectrum of additional value add services that can be seamlessly integrated into even the most complex business models. This includes everything from inbound and manufacturing supply management, to the distribution of fi nished goods, and the support of your aftermarket activities. This is how we can help you to turn your supply chain into a value chain, optimising your business and leveraging a whole range of cost-saving opportunities. Even some you had never thought of that before.”

DE Schenker claims to “be there for you”, “every day and every night”; “across the global”.

“For commitment and good quality, welcome to DB Schenker South Africa,” the company’s website says.

Its branches are strategically located throughout South Africa to service more than

5,500 national destinations.“At the cutting edge of logistics technology,

our bedrock philosophies remain unchanged: reliability, predictability, fl exibility, cost containment, asset security – and the personal touch,” the DE Schenker South Africa website says. “Vision, fl air and two-way interaction characterise our partnerships with client companies of all sizes. We pride ourselves on being realistic, entrepreneurial and agile. We align with the business strategies of our customers, large and small, becoming a fully integrated extension of their operations with one party responsibility. Via a hi-tech plug and play vehicle, we can integrate into customers’

ICT systems – from production to distribution – providing supply chain visibility and strategic reporting capabilities. We manage KPI’s and give our customers access to real time information 24/7.”

DB Schenker in South Africa has traditionally been reliant on the automotive sector, with major contracts with Volkswagen, BMW and

Mercedes Benz, as well as Chrysler and Toyota. “Nowadays the automotive industry has

become one of the most complex, highly developed supply chains, where continuous reliable fl ow of goods and perfect timing are crucial,” information Schenker sent to South Africa Magazine says. “It is more and more complex because of customised and high-tech offers, produced globally with less lead-time. Customers are more and more careful about aftermarket services and environmental friendliness.

“DB Schenker has a powerful history of providing transportation and logistics solutions to automotive and heavy manufacturing industries. Our global customer portfolio includes many of the world’s largest OEMs, tier 1, and tier 2 suppliers.

DB Schenker FEATURE


We pride ourselves on

being realistic, entrepreneurial

and agile

“With more than 30 years of experience in the automotive sector and our dedicated expert teams we have proven to bring maximum value to these complex chains worldwide – leading to less implementation time, best operational processes and profi table solutions,” it continued.

The great thing about DE Schenker’s solutions are that they tailored towards the needs of its client, yet based on market leading solutions for the global economy.

“Our customers include other prominent companies around the globe from our primary industry segments,” Schenker says. “This means that our employees have vast industry specifi c expertise at their fi ngertips and many years of experience in both the planning and implementation of contract logistics services and solutions. So, we are not only experts in logistics, but we also have an in-depth understanding of the market you are operating in, leading to a true win-win partnership.”

Schenker’s production logistics are located close to OEM’s sites – Rosslyn, Port Elizabeth, East London – building an effective connection between the supply markets and the place of production, and the company is able to offers an “integrated solution” suitable for OEM’s as well as their suppliers. “We are uniquely positioned to offer multi-supplier shared operations, feeding OEMs production which includes KANBAN inventory replenishment schemes and JIT/JIS deliveries to the line side,” Schenker says.

“Using fi rst–class IT infrastructure and innovative inventory management methods like VMI we achieve synergies and cost benefi ts with a continual focus on improvement and quality.

“After product quality and reliability, the second most important satisfaction criterion in the automotive branch is service from dealerships,” the company adds. “DB Schenker is the right partner to make the link between you and repair shops and to meet the special requirements of the aftermarket

business: short lead times; high service levels; global coverage; and transparency of global stock levels.

“DB Schenker acquires best practices from a diversifi ed customer base across the globe and continuously meet or exceed customer service levels,” it continues. “We combine our global coverage, transportation network and experience in spare parts and reverse logistics centres as part of the overall and time critical and costly supply chain for maintenance with spare parts and their suppliers.”

With almost 50 years of experience with numerous customers in South Africa, DB Schenker can boast that it is “the best partner for all Automotive Logistics services worldwide – offering the best operational processes, profi table solutions and less implementation time”.

“We are uniquely positioned to offer end-to-end supply chain solutions from procurement to service and aftermarket over all transportation modes like land, air, ocean and rail – with a single point of contact,” Schenker concludes.

To learn more about how Schenker can help you contact +27 11 971 8400; Andreas Kusza / Abhilash Kunjupilla. END


DB Schenker FEATURE

For commitment and good quality, welcome to DB Schenker South Africa

© Deutsche Bahn AG

Helping People Find Better Ways To Do Great Work!

The XBC Group of companies, founded in 1998, comprises of XBC Network Products (Pty) Ltd and XBCCommunications (Pty) Ltd specializing Communications (Pty) Ltd specializing in providing leading edge Data, Voice, Wireless and Video Solutionsto the South African Market.

We provide an unmatched portfolio of We provide an unmatched portfolio of products and solutions to South African businesses with the aim of being a successful and empowered market leader.

Voice Solutions• Unified messaging• Voice Over IP• IP Telephony• Wireless Solutions• Video Email• Video Surveillance• Video Surveillance• Mobile Communications

Data Solutions from XEROX • Document Management• Mono Products for the office• Colour Products for the office• Wide Format Engineering Systems• Consumables• Consumables• Software and Support• Production Systems

Tel: +27 11 974-1140 • Fax: +27 11 392-1916 Head Office – 43 Isando Road, Isando. 1619

Specialists in Logistics& Industrial Guarding Sites· Proven Procedures in place· KPI Driven Management Team· Vastly Different Operational Support Structure

Technology - Technology - Tailor made integrated systems from design, installation, commissioning & maintenance to provide complete security solutions. Including: CCTV, Electric Fences, Access CCTV, Electric Fences, Access Control Systems, Alarm Systems, Gate Motors, and more.

PSIRA No: 595257

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aff ordable, pre-engineered building solutions

E X P E R T S I N

building solutions building solutions

This is an exciting time for a rebranded e-KwikBuild says Business Development

Manager Andrew Hart.

P icture this: you’ve just won a contract to start working on a new site, let’s say mining – great news you say. You want to start work immediately but it

means you need site offi ces, accommodation for staff – all manner of facilities – and you need it to happen fast. What do you do?

The answer is simple: give e-KwikBuild a call.“e-KwikBuild manufactures and supplies

pre-engineered buildings across Africa,” says Andrew Hart, Head of Business Development.

“Our products are suitable for anything from classrooms, medical clinics, accommodation units and low cost housing to bespoke workers’ camps and offi ces.

“Our system allows buildings to be operational within a few days of arriving on site.”

Such is their quality that e-KwikBuild buildings can last a lifetime, whether built

to last in one place, or moved between multiple locations. The quality of the materials means you have longevity no matter your requirement.

“The solutions that we offer provide every modern comfort, fi nished to the highest quality, and have a staggering number of advantages over traditional buildings, like cost effectiveness, fast installation or fl exibility in usage – to name a few,” says Hart. “Our units are assembled in as little as four days, built on either a concrete slab foundation or a light steel frame. Our high quality buildings are fully insulated and we offer bespoke solutions including carpeting, air conditioning and ablution facilities. All units come with a three-month maintenance plan and a fi ve-year structural warranty.”

e-KwikBuild structures can be constructed on any terrain by semi-skilled labour using a dry building process. The materials are weather-proof, fi re resistant, durable, and

e-KwikBuild FEATURE


to last in one place, or moved between multiple locations. The quality of the materials means you have longevity no matter your requirement.

“The solutions that we offer provide every modern comfort, fi nished to the highest quality, and have a staggering number of advantages over traditional buildings, like cost effectiveness, fast installation or fl exibility in usage – to name a few,” says Hart. “Our units are assembled in as little as four days, built on either a concrete slab foundation or a light steel frame. Our high quality buildings are fully insulated and we offer bespoke solutions including carpeting, air conditioning and ablution facilities. All units come with a three-month maintenance plan and a fi ve-year structural warranty.”

e-KwikBuild structures can be constructed on any terrain by semi-skilled labour using a dry building process. The materials are weather-proof, fi re resistant, durable, and

Our system allows buildings

to be operational within a few days of arriving on site

provide excellent insulation while meeting stringent regulations.

“e-KwikBuild delivers on large scale public and private sector projects,” Hart says. “In South Africa these have included providing 120 emergency school classrooms to the Department of Education in the Eastern Cape, Medical Clinics and laboratories for the Department of Health. We’ve been awarded a large contract at Cape Town Station to upgrade trading facilities and have become a major supplier to South African Police Service (SAPS) providing victim friendly support units at a range of training facilities.

“We are moving rapidly into the construction of worker camps for the mining, oil and gas sectors throughout Africa, recently winning a tender with the African Barrick Gold Group, the largest gold producer in the world.”

These are exciting times for e-KwikBuild, which has changed considerably in the last few months.

Together with Commercial Director Roger Stringer, Hart joined in November 2010; both coming from parent company Lonrho, which owns a 51 percent majority stake in the firm. The pair have been implementing significant changes at e-KwikBuild.


e-KwikBuild FEATURE

RS STEELWORKS cc was established in 2005 by Steven Moodley; This is a BBBEE Company with at least ten years experience in the Fabrication and Manufacturing of Steel Products.RS STEELWORKS sees itself as a major role player in assisting its clients to achieve their goals by providing a cost effective service without compromising quality.

OUR RANGE OF SERVICES INCLUDE; Manufacturing of Baseframes for the Prefab Industry Stainless Steel and Mild Steel Baseframes - Mazeleen Flooring - Ramps,

Landings & Staircases - Hand Railings & Bumper Rails - Security Gates & Burglar Bars; Custom Built Trailers - Portals & Lattice

Beams.We also Rollform C Section Lipchannel.

TEL: 021 945 3549 fax: 021 949 6823 [email protected]

www.p-world.co.za

contact:tel: 021 592 4777fax: 021 592 1177

email: [email protected]

Proud to be associated with

KwikBuild

“Since Lonrho took a controlling interest at e-KwikBuild in October 2008, the management’s focus has been to increase production capacity, to meet demand and to grow the business. We are putting in the building blocks for growth; that has been a major part of my role. The opportunities for e-KwikBuild products are considerable, and we believe significant future growth can be generated through Lonrho’s pan-African presence.”

“We – basically – have been brought in to develop the business,” he says. “That is a two-fold thing: firstly there has been a rebrand and secondly we have restructured the company and reviewed the way the company does business.”

In terms of the rebrand he says the e-KwikBuild brand was relatively antiquated prior to him coming on-board; an image evolution was needed. The process is on-going, but already he is seeing some benefits.

“Now everybody at the company from the factory floor to site managers and sales managers understands who we are and what


programmes etc.,” Hart adds, “and now it is about reaping the benefits of that. Our BBBEE equity has risen from under 60% to over 80% of employees coming from previously disadvantaged groups.

In 2010, turnover at e-KwikBuild rose, with the company’s order book looking healthy; today things are even better. “We have already tripled last years’ turnover,” says Hart. “That is the direction the company is going – upwards and forwards.

we are aiming to do,” says Hart. “As far as the restructuring goes,” he

adds, “we moved our production plant, for one; previously our manufacturing was in Port Elizabeth, far removed from our Cape Town HQ; we went offline over Christmas for eight weeks and we set up a brand new manufacturing facility in Cape Town. Obviously there is the streamlining and efficiency savings to come from that but also we wanted to get into a position where we were more responsive both in terms of sales and actual production. This is a lot easier when the factory floor is 50 metres away as opposed to the next province.”

The relocation of the production plant will ensure that e-KwikBuild remains a market leader in the supply of high quality prefabricated buildings. The plant incorporates state-of-the-art applications to the manufacturing process.

“With the restructuring we also tweaked a little bit in terms of management structures,” Hart adds. “The highlight of this has been that we have been awarded our ISO 9001 certificate. That is the first of several ISOs that we’ll be chasing.”

When South African Magazine last spoke to e-KwikBuild, less than a year ago; things were very different. One man – Sello Tlhotlhalemajoe – was the lone salesman with the daunting task of covering the whole country. He remains a huge influence but now has the support of a team with a centralised goal: grow the business, offer better value and get closer to customers.

“When I joined the company they basically had just Sello in sales – that is not an exaggeration,” Hart admits. “But now we have got four business development managers, of which Sello is one, responsible for different geographical areas. We also have three Business Development Analysts, and considerable back office support staff.

“Our HR team have worked hard to put in new systems, structures, hierarchy, training


“These are very exciting times, particularly in further growth of potential in the mining, oil and gas industries.” Hart says. One of e-KwikBuild’s biggest contracts this year was the construction of over R 20 million rands of classrooms, in response to the Eastern Cape Government Emergency Schools programme. e-KwikBuild has supplied, delivered and installed approximately 6000 m2 of classrooms and ablution blocks over a period of 10 weeks. In response to our expanding

work in rural schools and often impoverished areas, e-KwikBuild has developed a strong sense of commitment to the communities with whom we work.

In conjunction with the Department of Education, Social Development and professional teachers, e- KwikBuild, next month are launching a road safety campaign called “KWIKBUILD; “Keeps you SAFE, Keeps you LEARNING.” Upon completion of all KwikBuild classrooms, the teachers will be provided with an educational pack, which includes posters, learning materials and a scheme of work.

All students will be provided with a high visibility armband to wear on their way to school, produced by a KwikBuild supported cooperative.

A key on-going project is The Cape Town Station Traders Mall which was part of the Cape Town station upgrade project for the 2010 World Cup. The original project was to build 150 units in time for the 2010 World Cup with the time frame of just one month from the initial enquiry to completion. Due to the popularity of the units, PRASA (Passenger Rail Agency of South Africa) engaged e-KwikBuild to provide a further 250 trader outlets. These range in size from 4 to 20m2.

“These were big contracts requiring complex and rapid deployment,” Hart says. “We see more of these in the future, as well as more commercial contracts. The commercial side of the business is our focus. We see growth in a lot of segments.”

e-KwikBuild parent company Lonrho, invests and builds businesses in Africa. The company operates in 17 countries across the continent in five strategic business divisions: agribusiness, infrastructure, transport, hotels and support services. These important industries provide some of the building blocks and foundations required for successful economic growth in Africa. e-KwikBuild is destined play a major role in the group’s infrastructure division. END

e-KwikBuild FEATURE


post


If you want to talk to somebody use a letter, Merpak MD Deon Joubert

tells South Africa Magazine. By Colin Chinery

F I R S T P A S T T H Epostpost

“The core and backbone of our business is the mail room directed envelope that requires high-speed automatic insertion. Here the quality, size and consistency of the product are critical and over the years we have invested only in the very best equipment – from Winkler and Dunnebier in Germany. But these volumes are stagnating and we have had to develop other competencies.”

Envelope manufacturers worldwide have lagged behind commercial printers in developing customer service models in both speed to market and capitalising on lucrative jobbing work. Merpak’s expansion programme includes a focus on each.

“The fi rst area is speed to market. It’s not uncommon for a customer to have to wait two to three weeks for an envelope, when in the digital world they can get a brochure printed almost immediately. Quality high speed inserting envelopes remains our core business of course, but we’ve worked very hard and re-directed our energies a little bit to reducing lead times,” Joubert says.

“As the remaining top of the range quality manufacturer and printer we now offer products with a lead time down to 72 hours,

we have standard quoted lead times of 10 days – excellent in this market – and we have Rapid Response and Super Rapid Response. So in theory somebody could have a mail campaign ready within three days from conception to being in the mail with our Super Rapid Response channel.”

The other segment where Merpak is differentiating itself is in an area that until now has been dominated by commercial printers: jobbing work from corporates. “There might be a contract for a letterhead, a brochure and a

Remember the fable about the tortoise and the hare? Deon Joubert brings another pairing to the party of improbable winners: cyberspace

and the snail mail. Joubert is MD of Merpak, the biggest

envelope manufacturer and printer in South Africa and probably the African continent. Headquartered in Johannesburg, Merpak delivers expertise, quality and value across the widest range, using different grades of paper, sizes and shapes. Financial institutions account for 40 percent of its business; Retailers with a large credit customer base such as Woolworths are another major segment.

But these are challenging times. “Right now we have the world recession which is concerning credit extension and therefore envelope use,” says Joubert. ”And of course there are alternative ways of communicating, and electronic communication is a channel that will never come back to envelopes - and what unfortunately is termed ‘snail mail.’ It’s gone into cyberspace.”

But the cyber world is not all-conquering, and Joubert argues that even in this digital age with its glitzy alternative media, the uniquely practical and aesthetic qualities of writing paper and envelopes are unmatched by the electronic options.

The snail mail like the tortoise can be fi rst across the line, and the challenge says Deon Joubert, is exciting.

Formed 42 years ago – and still a founder family-owned business – Merpak has developed competences across different areas, with a speciality in manufacturing premier quality envelopes for high-speed inserting machines.

Merpak FEATURE


The core and backbone of our business is the

mail room directed envelope

that requires high-speed automatic

insertion

few forms – and the corporate will ask them to print the envelopes as well. Traditionally we’ve never been strong in converting that work for printers, but we’ve found we are good at this.”

With a background of consolidation through acquisition of smaller competitors, Merpak is currently negotiating its first diversification. “We have developed competencies in manufacture, logistics, and sales, and after examining our own processes we know we are able to do just about anything. And so the objective at the moment is to look at opportunities in the paper world, and we are close to signing a deal. It will entail converting paper, it won’t be envelopes, but something completely different, and will add to our basket. This is the way we need to go, to broaden the base and add some arrows to our quiver.”

Meantime Merpak is dealing with two challenges. “In a recession people lose their

jobs and then their lines of credit. You might have three or four credit cards and another three or four cards with retailers. Once you lose your credit line we lose perhaps six or seven envelopes as a consequence. As things improve and people get work and open their accounts again and get billed, hopefully we will regain some of this lost volume,” Joubert explains.

“The other challenge, and the more exciting, is the move away from paper-based and into electronic communication. This is being driven very, very hard by financial and marketing institutions; they want to save costs.

“The corporates involved also tell us they are “saving the environment”, but as Mae West said, goodness has nothing to do with it.”

‘Greenwashing’ – a hybrid of ‘Green’ and ‘whitewashing’ – is corporate cost-cutting dressed up as environmental altruism, and


Merpak FEATURE

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Best wishes to MERPAK

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Joubert is critical of “mail and envelope-bashing” by people with hidden agendas.

“A bank for example might suggest you get your statement online and to ‘Save a Tree’. There’s no empirical evidence to indicate (a) that sending a mail electronically is going to save a tree and (b) that by inference using traditional mail cuts down trees.”

According to the UN’s Food and Agriculture Organisation, 90 percent of deforestation is caused by unsustainable agricultural practices, and Joubert points to the persuasive counter intelligence emerging (the UK website www.twosides.info is a good example).”There’s some

wonderful information starting to come out of the paper and print world on the sustainability of paper and paper-based communications.”

Up to 70 percent of paper consumed around the world is being recycled, far out-performing the electronic stream, and Merpak pays

tribute both to the great loyalty of its suppliers and their strong support of the company’s environmental policy.

“Europe has huge electronic waste streams that will become problematic; plastics and metals that can’t be recycled. It’s been said that if paper was invented today it would be hailed as the only truly sustainable communication medium,


We believe very strongly in training

and developing people

and there’s much to support this.”But Joubert concedes his industry is facing a challenge from popular perception. “The electronic media is convenient and instant gratification, and we all use mobile phones, email and all kinds of social networking.

“But that space is so cluttered with an avalanche of information coming at us from all directions, and we say that if you want to get a message from a business to an individual then the letter and direct mail marketing piece is going to hold its head for some time to come. Studies in the UK and Europe suggest that, and the challenge for us is exciting.”

Like every business, domestic economic, social and labour issues confront Merpak. Some 25 percent of Merpak is now Black-owned, and Joubert says it’s important that skills and ownership are transformed.

“South Africa has very, very high rates of unemployment and very strong trade unions. So there is this strange situation where we have quite imposing labour legislation and many people looking for work.

“It’s a fine balance between trying to create a labour-intensive versus a capital intensive operation, and we’ve steadily taken the view that by training people – even if we can’t retain them when they’ve qualified - we will be benefiting both that person and our business while they are with us.

“We have a very aggressive apprenticeship programme and in the last few years we’ve started an apprenticeship programme where we take youngsters, mostly Black kids, straight out of school and teach them to be office administrators. As a result we’ve developed six or seven youngsters who can go out into the world with an experience which I think is exceptional. We move them around our business - from sales to marketing, to stores, logistics, factory, admin - and they see the business from the inside outwards. Now that’s pretty unique. We believe very strongly in training and developing people and put a lot of effort into this.”

Joubert is not overly impressed by growth rate estimates of four percent. “Frankly we need 10 percent if we are going to make a serious dent in our unemployment rates. South Africa is blessed with natural mineral resources, which keep part of the economy and our currency reasonably strong, and we have a fantastic banking system, which will be the springboard that will allow us to export into Africa. But overall we have some stark challenges.”

Meantime the snail mail is poised, tortoise-like. “When you want to talk to somebody use a letter, it’s a mobile solution, it’s private, and it’s personal and it has the look and the feel. And it’s highly effective as the results coming out of direct marketing organisations are proving.

“It might be a little old fashioned but I believe that whether from marketing or a personal point of view use a letter!” END

Merpak FEATURE


Richmark’s dream is to help grow the South African economy by creating

jobs that empower people and provide the necessary funding to support emerging ventures. South Africa

Magazine talks to operations director Eric Delport.

By Ian Armitage

ANGEL INVESTORS AND

A re you a BIG business of tomorrow? Would more support help push you forward? If the answer to that question is yes, why not bring in an

Angel investor?Richmark was founded in 2000 with

the goal of helping talented South African entrepreneurs build companies from scratch, investing in very early stage businesses.

Research tells us such early-stage fi rms really matter economically: they create

most of the new private sector jobs and are responsible for a disproportionate amount of the innovation. Yet formal venture capital fi rms struggle to make smaller deals work. Entrepreneurs are forced to seek funding from family and friends - or angel networks.

Richmark is one of South Africa’s leading angel investors. South Africa Magazine (SAM) caught up with the business’s operations director Eric Delport (ED) who was happy to tell us more…

T O M O R R OW ’ S CHAMPIONS

Eric Delport

SAM: Hi Eric, nice to meet you. I wondered if you could start today by telling us more about the work Richmark does?ED: Gavin Varejes, entrepreneur businessman and philanthropist, started Richmark in 2000. Richmark started out as an Angel Investor, investing in very early stage businesses. The focus was largely on telecoms, as Gavin saw Telecoms as the next great investment sector. His vision of the sector was prophetic. Vocall Cellular (Pty) Ltd was one of the fi rst investments we made and today it is listed as one of Vodacom’s largest Super Dealers. Another successful Richmark investment was a company called Cellfi nd (Pty) Ltd. We invested in Cellfi nd at a very early stage, exited through the sale to Blue Label Telecoms Limited on its listing in November 2007, and today it is regarded as the leader in location based services.

We’ve earned our stripes and over the past 10 years have developed a keen instinct for identifying pearls to invest in.

SAM: Has the company’s focus changed since those early days? ED: No, the company’s focus has not changed, rather, experience has taught us how to fi rstly, identify an investment opportunity and secondly, how to add value to that company to take it to the next level. We have grown to understand our own strengths and our own potential. As a result we only invest in businesses where we know we can add maximum value and in businesses that we know have the potential to soar given the right resources and guidance.

We are the angels of angel investing and have remained true to ourselves in that we only invest in companies that operate in sectors that we are familiar with and understand.

SAM: Why do businesses come to Richmark for angel investment? What makes you different to other angels? ED: The angel investor network is not all that strong in South Africa. There are few angels who are able to offer the level of fi nancial resources that we are able to offer. The Group has continuously reinvested its profi ts and, in so doing, has allowed us to build up a reasonably strong lending base. We combine the fi nancial strength with years of experience as well as a strong business network and are able to offer the young inexperienced entrepreneur these valuable skills that take decades to learn and acquire.

The industry is made up of three classes of investor: private equity investors, venture capitalists and business angels. Private equity investment has seen a strong revival of late with a focus towards Africa, most notably Southern Africa (and especially due to the economic benefi t to South Africa from its recent acceptance to BRICS). There is a strong infl ow to

these funds of foreign money, particularly from North America. Africa is seen as a target investment destination by the rest of the world.

In South Africa, the industry of Private Equity is largely thought of as being characterised by the large private equity companies. They do, after all, make up in excess of 90 percent of all funding. As a result we have seen a tendency towards providing incentives, tax or otherwise, to the formal private equity market. Some incentive has found its way to venture capital investing fi rms and none or very little, it seems, has been aimed at the angel investor.

There has been a strong focus on investment in SMEs. One noticeable aspect

Richmark FEATURE


We try and invest in as much of a

value chain as possible

of the industry is the support, or rather lack thereof, of the formal financial institutions to the SME market. Banking institutes remain traditionally risk averse but now have the additional FICA and Basel II restrictions that clients are challenged with. As a result we have found our investment in a business extended to short-term working capital solutions, a role we would normally expect formal financial institutes to carry. Our role as an investor has then been to take the business to the next level and to make it more attractive and bankable to financial institutions. Inevitably we need to consider these financial implications in our investment decision.

SAM: What challenges do you face, then?ED: A challenge that we are faced with on a regular basis lies in the statutory arrangements of our investments. The new

Companies and Intellectual Properties Commission is not yet operating smoothly or efficiently. We find that this causes unnecessary delays and interruptions in deal structuring or in trying to manage the basic business activities like opening bank accounts or restructuring Boards. Given the legislative challenges (for example FICA), a disorganised CIPCOM is not conducive to managing day-to-day operations of business.

We try and invest in as much of a value chain as possible. We consider the sector we are investing in, we try to understand the full dynamics of the value chain that business might be exposed to and we look for opportunities for real value chain investing. In this way we try and manage and minimise the business risk. It is for this reason we stick to our core focus on investment in sectors we know, in sectors we are already invested in and in sectors where we know we can unlock value through carefully considered value chain investing.

SAM: How do you see the industry developing?ED: There will be more focus on investment in SME’s. Broad Based Black Economic Empowerment is still very prevalent as there is still a strong need to redress the economic imbalance. A focus on BBBEE along with job creation is mandatory in any business decision. These two considerations, economic imbalance as well as job creation, could be catalysts in mobilising considerably more SME funding. It is well known, and the anecdotal evidence is there, that SME growth is needed to tackle the issue of unemployment. Generally though, the deal size and potential return is smaller in this sector, however, Government is targeting investment in SME’s for incentives to promote investment in this sector. In our opinion, South Africa’s SME’s will become the most lucrative investment opportunity.


Richmark FEATURE

Greg van Rensburg (Richmarks Group Accountant)

CONTACT:Donovan Sladetel: + 27 11 974-9300fax: + 27 11 392-5560e-mail : [email protected]

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its 30th year, and is one of South Africa’s leading stockists and

suppliers of quality hardwood from all around the world.around the world.

We offer the finest MERANTI from the Far east, and with a

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We also supply a full range of Board products such as MDF Board, Chipboard, OSB and Marine Ply.

Contact us for more information or see our website

SAM: What about business opportunities outside SA? ED: Our main market right now is South Africa, however, as angel investors, we like to stay close to our investment; we take a seat on the Board of each company that we invest in and actively participate in the day-to-day activities of each business. That said, we are beginning to explore other markets to invest in and we have targeted Kenya as a potential investment market. We are currently conducting our own research on Kenya and the opportunities that it presents.

SAM: Eric, thank you for your time. The work Richmark does is fascinating. We look forward to keeping track of your future investments. Thanks again. END


South Africa Magazine looks at the new Safal Steel coating facility in Cato Ridge, Durban. By Ian Armitage

T H E C O A T I N G

K I N G SS A FA L S T E E L :

In 2006 the Safal Group -- a major manufacturer and supplier of coated steel roofi ng -- announced its intentions to invest in a major steel coating

facility in South Africa. The Group saw the need to increase competition in the coated metal industry and set about establishing an aluminium zinc pre-coated metal manufacturing plant in South Africa.

Safal Steel (Pty) Ltd was born and the plant, which is now in full commercial production, is at Cato Ridge, Durban.

“The plant manufactures and supplies coated steel roofi ng bound for the local and global markets,” Safal Steel’s CEO Ronnie Graham told

South Africa Magazine.The Cato Ridge plant

represents an investment of more than R1 bullion in the local economy, he added.

Graham, a founder of Safi ntra in 1991, said the plant went into full commercial production in 2011.

It is already producing about between 8,000 and

10,000 tons of material a month, he said. “It can go up to 12,000 tons, maybe

13,000 tons of material. The Safal Group chose to invest in South Africa because it is a major economic hub in Africa. They decided it was about time ArcelorMittal had some competition.”

With its harbour, Durban was the best place to set up operations, he said.

The port is the busiest in the country, with all shipping lines visiting it. In addition, Cato Ridge is on the main route between the city and Johannesburg.

The plant was built in partnership with the International Development Corporation (IDC) and the International Finance Corporation (IFC). Their involvement is fi nancial; IDC and IFC are major investors in the project.

“They have been fantastic to work with,” Graham said.

Safal Steel FEATURE


The plant manufactures and

supplies coated steel


Safal Steel FEATURE

The Cato Ridge facility, a US$100 million Greenfi eld project, took two years to commission and stabilse. The fi rst soil was moved in May 2008 and in June 2010 the fi rst machine was commissioned.

The investment has been great for the local economy and the factory itself employs some 370 staff, all but a handful of which are local.

“The job creation is 370 direct,” Graham said. “But it is much more locally and in the wider economy. I think the equation is to multiply the number of workers you employ by a factor of eight – that’s a lot of jobs!”

The benefi ts of the plant are far reaching. The transport sector, specifi cally, benefi ts particularly well, with some 400 trucks passing through the factory gates each month. The harbour is also a major benefi ciary, with thousands of tons of steel shipped through it monthly.

Of the product, some 60 percent is targeted for the local market and the balance for export.

KONECRANESKonecranes (Pty) Ltd South Africa would like to congratulate the Safal Group on the opening of their new plant based at Cato Ridge in Kwazulu-Natal.

As a proud supplier of overhead cranes to the Safal Group, Konecranes (Pty) Ltd supplied a total of thirteen cranes to the new Cato Ridge plant, ranging in size from 5 tons to 30 tons capacity.

Konecranes also supplied a number of cranes to other Safal Group operations as part of the group’s expansion programme.

Konecranes (Pty) Ltd South Africa serves the Sub-Saharan Regional countries of Africa, with the support of its parent company, Konecranes Finland and as such, has the backup of this Global Company which offers a localised, design, manufacture, supply and service to our valued clients for Overhead Cranes, Crane Kits, Electric Hoists, Jib Cranes, Portal Cranes, Container Handling Cranes, Stackers and associated Materials Handling Equipment.

Further expansion may soon be on the cards, Graham said.

“The whole facility is designed for double,” he explained. ”It has a capacity for 150,000 tons a year now, but the end plan is 300,000 tons. We’re already approaching 120,000 tons.”

The brands available at Safal Steel are ZincAL and ColorPLUS, South Africa Magazine understands.

Safal Group produces coated metal using patented aluminium zinc (AZ) coating technology. The group is the only licensed producer in Africa to BIEC International

Inc., the worldwide licensor and acknowledged leader in technologies associated with AZ coated metal.

This innovative technology has been well received in South Africa and globally, Graham said.

“Safal Steel produces flat-coated metal coils for roofing and general engineering applications and the Cato Ridge facility is a fully self-contained coating operation,” he said.

The process includes the pickling and oiling of hot rolled coil, cold reducing the metal to thinner gauges, progressing to the metal coating line and then coating with the AZ Technology.

Finally, the coated metal can be pre-painted with a polyester two-coat system, if the end-user requires.

“All machinery used in the facility is state-of-the-art and we run AZ technology for our metal coating process, which is recognised as the best on the global market,” Graham explained. “We manufacture metal coated steel coils which will be supplied to both the local and global markets. “The brands we make locally are ZincAL and ColorPLUS,” he added.


© Onkelchen

The ZincAL and ColorPLUS brands represent the top-end premium metal-coated range, servicing the high-end roll formers for vertical cladding and roof sheeting.

Safal Steel is the South African arm of Safal Group, a major African multinational with its head offi ce in Mauritius. It has a presence in central, eastern and southern Africa.

The company made its fi rst ventures into South Africa in 1995 when it acquired Safi ntra, Graham said.

The Safal Group manufactures a wide range of metal roofi ng and allied building products across East and Southern Africa, and supplies these internationally to over 40 countries worldwide.

“The group produces cold rolled, galvanised, aluminium zinc coated and pre-painted steel coils conforming to international standards in world class manufacturing facilities,” Graham said.

The Safal Group’s roll forming operations manufacture profi led roofi ng sheets and accessories across East and Southern Africa.

“We are very excited by the future,” Graham concluded. “The South African market has been under a bit of pressure of

late and the building industry has still yet to come through the downturn. There has been limited government spending and issues with government housing projects, where there are huge concerns about corruption – that has slowed the delivering of housing in that sector. But, despite the challenges, we are approaching 70-75 percent capacity and am sure we’ll be close to 100 percent in the next few months.”For more information on Safal Steel’s brands and operations contact:

Tel: 031 782 [email protected]@safalsteel.co.za END


Safal Steel FEATURE

It has a capacity for 150,000 tons

a year now, but the end plan is

300,000 tons


Insurance is one of Botswana’s fastest-growing sectors. Dziki Nganunu, Managing Director of

the biggest and longest-established short-term insurers, Botswana Insurance Company, tells

South Africa Magazine why BIC is staying in front.By Colin Chinery

C A R C O V E R O P T I O N A L … B U T

I N B O T S W A N A

I N S U RA N C E BOOM I N G

Insurance is one of Botswana’s fastest growing sectors and among the most competitive in the economy, with competition growing and consumers

shopping around for better deals and more effi cient service.

With a market share at around 30 percent, the Botswana Insurance Company is not only the biggest and longest established short-term insurer in the country but also one with a uniquely localised focus.

“We are the only independent insurance company here, an advantage that gives us the ability to customise our products to meet the requirements of the Botswana insurance market,” says managing director Dziki Nganunu. “Over the years we have introduced products tailored to this market as opposed to generic African insurance offerings.”

Formed in 1975 and bought in 2003 by a consortium of local and regional investors – fi ve percent of the company is owned by its staff – Botswana Insurance Company’s product range extends from household and motor to engineering and mining.

The quality of its personnel is a byword in the fi nancial services sector. “We do a lot of training and have a very good quality of staff. We have a graduate training programme and every year bring in graduates, bring them up to speed. So we tend to be a magnet for skills from our competitors, brokers and banks.”

The national general insurance sector has been growing quickly, but the impressive annual growth rate fi gures must be set against a market penetration rate which, says Nganunu, is low compared with more developed countries. “But there is greater understanding of insurance, more

Botswana Insurance Company FEATURE


sophistication, and, amongst business people in particular, a growing awareness of need. So uptake is slowly but surely growing.”

Mining and construction have been major drivers of insurance growth, with heavy Government infrastructure expenditure on schools, hospitals, airports, roads and dams. But following the global fi nancial crisis and recession of 2008 these sectors were hit, impacting on businesses reliant on Government spending, and so reducing premium incomes.

While mining makes up some 30 percent of GDP, lower output caused Botswana’s GDP to fall 2.2 percent in the fi rst quarter of this year compared with the previous three months. Nganunu takes a positive view however. “We are by far the leading provider of insurance in the mining sector and most of the mines are insured by us. So long as commodity prices remain high and China and India remain strong, mining

will grow and account for an increasing share of our revenue.

“Mining companies have large exposures and are looking for insurers with a strong balance sheet and able to deal with their long term liabilities. So we are quite bullish on the mining sector – a little cautious over diamonds maybe – but certainly bullish with regard to the other minerals as well as the downstream operations for the diamond industry where we are putting out new products.”

While these industrial sectors are signifi cant, it is the motor market that accounts for the bulk of short-term insurance premiums. And here is a paradox. In Botswana motor insurance is not compulsory and Nganunu estimates that two thirds of motorists are uninsured.

Over the years companies have come and gone but Botswana

Insurance Company has remained

“So while there is a great growth potential there, discussions with the Government over reform are at a very preliminary stage. At present there is some insurance provided by the Government through the Motor Vehicle Accident Fund, a third party physical injury cover that compensates anyone injured in a car accident, but it does not pay for any damage to the vehicle.

“So if you are insured and hit by an uninsured driver, the damage is paid for by your insurer. In effect you end up paying for it yourself, and this is an unfair burden on those who are insured. And while strictly speaking, the insurer should be able to claim from the driver causing the accident, in practice many can’t afford to pay so it is pointless trying to take them to court.”

Motor claims procedures are among the chief beneficiaries of a new claims process implemented by BIC late last year. “Motor

business accounts for some 90 percent of all our claims,” says Nganunu. We have a vehicle assessment centre - the only insurance company in Botswana to do so – complete with our own assessors.

“Most vehicles go there. We also have an online system for appointing repairers. It’s a seamless process for the customer, with a start on the processing of a claim being made even before a claim form has been filled in. Altogether faster, more efficient, and friendlier.”

Close customer relations are at the core of BIC’s business philosophy, an approach quickened over the past couple of years through technology. “We have become more available to our customers via our website, mobile website, and e mails. A client can go online and, for example, request a quote. We also provide policy information such as early notification of renewal via cellphones. While many people in Botswana cannot afford



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computers or do not have a fixed line, almost everyone has a cell phone.”

Looking across the sector Nganunu says the Botswana insurance market is well regulated and well run. “The businesses have good risk management practices for the most part and been of much interest to other insurance players in South Africa, Zimbabwe and other countries. There has been a distinct growth in the number of insurance companies both short-term and life, and this is giving the consumer, both individual and corporate, more choice. Also, with increasing sophistication, there is more shopping around.

“Through the new Non Bank Financial Institutions Regulatory Authority the sector is going through some regulatory changes that are improving the whole quality of the industry. This entails a lot of work and effort for insurers and re-insurers, but these changes will make it a more professional and safer market.”

With the Botswana economy growing more slowly than pre-recession and new competitors moving in, Nganunu says it is will be a challenge for insurers to innovate, manage costs, offer better value for money and improve their service, while at the same time remaining profitable. “The next couple of years will be a little more difficult for the industry,” he says.

“Insurance is about strength and security and good balance sheets. Will the company be there in five years to pay your claims? We have had a number of issues in this market with brokers who have gone under because they were not well capitalised, as well as, in the past few years, a short-term insurer which also went down.

“So this is a critical and indeed fundamental area, and we like to emphasise with our clients the strength of BIC, its capital adequacy and its ability to pay claims. Over the years companies have come and gone but Botswana Insurance Company has remained.” END



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Joburg is a city built on gold, but returning it to its gold mining

heyday is proving quite the challenge for

Central Rand Gold as South Africa Magazine discovers.

By Ian Armitage

S O U T H A F R I C A ’ S

Joburg is a city built on gold, but Joburg is a city built on gold, but Joburg is a city built on gold, but

Johannesburg is South Africa’s city of gold.It is literally built on the stuff.And, just over 100m below some

suburban streets, gold could be mined in substantial quantities, says Central Rand Gold (CRG).

CRG is situated south of the city and operates on the central rand goldfi eld of the Witwatersrand basin.

It was founded on the basis that the main reef leader, which produced historical volumes of gold and ran in the region of 8 g/t, was mined out and that, below it, in the main reef, which runs at about 3- 4 g/t, there was an opportunity to mine viably.

“The reefs we have been mining were worked until the 1970s,” Patrick Malaza, CFO of CRG, tells South Africa Magazine. “In those days, gold was US$35 per ounce and the mining company was only interested in high grade ore, delivering up to, say, eight grams of gold per ton of ore. We are expecting to mine reefs that have an average of four grams of gold.

“Where we are working is not a new mining area,” Malaza adds. “Our aim is to bring gold mining back to Johannesburg.

“However, there are two main problems that we face. The most unexpected has been the discovery of undocumented voids that, frankly, we are surprised to see. Consequently, this means that we have to drill down deeper than we originally intended in order to extract the ore.”

Drilling down deeper is not as simple as it may appear. At 250m below the surface, CRG has struck not gold, but rising contaminated water – CRG is at risk of acid mine drainage

(AMD) fl ooding. “Obviously, this prevents us from going any further down until we have pumped it out. So the immediate challenge is to get this water out so that we can begin full-scale production. Not only that, but we need to stop the water fl ooding into the mine in the fi rst place - otherwise it will be an endless pumping cycle. So our intention is to put in place methods of keeping the water out, pump out the existing water, treat it and then return it to the river system.”

But this process is not as simple as it may seem. “Obviously we need to be involved with the water pumping. However, this is not 100 percent our responsibility,

particularly as we are the ‘new kids on the block’ here, so to speak,” says Malaza. “The liability falls, yes, on the active miners, but also on the South African government and those companies who were mining here before us. So resolving this issue in partnership is very much our current focus as, until we have sorted it out, there can be no more mining, other than what we have going on at a small scale currently.”

He says the “rising tide of contaminated underground water” is from more than 100

years of mining activity in the three geological compartments of the Witwatersrand.

Spillage to the surface is already occurring on the East and West Rand.

“The Central Rand Basin in which we are located has, until recently, been dewatered almost on a ‘last-man-standing’ basis,” Malaza says. “Our founding premise was that this would continue under the sponsorship of a coalition of interested and affected parties, sharing capital and operating expenses into

Central Rand Gold FEATURE


Our aim is to bring the gold

mining industry back to

Johannesburg in a

big way

the future.”Current development is sub-economic because of the double voids, deeper and more promising development is not possible because of lack of defi nition on AMD, and current stopping costs are prohibitive at present levels of dilution, Malaza says.

On 29 March 2011, CRG announced the suspension of underground mining, and an intention to conduct a three-month trial of conventional mining at its operations in Johannesburg.

The company has moved to place its underground mining operations on care and maintenance, Malaza says - the objective is to understand

whether conventional handheld in-stope drilling can be done safely.

“The objective of the trial will be to understand whether conventional handheld in-stope drilling can be undertaken safely, reduce dilution and improve grade selectivity,” CRG said in an interim management statement in May.

The company is currently using a mechanised underground mining method to extract the Main Reef.

CRG continued to extract available ore before it placed its underground operations, except for the conventional trial mining, on care and maintenance, Malaza adds.

“We announced plans


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to halt underground mining in March and announced at the time that up to 150 people would be retrenched when we moved into the care and maintenance phase,” he says.

CRG has since held several meetings with the Department of Water Affairs (DWA) to clarify and agree on the technical principles, funding allocation and timing of the implementation of an interim solution to the AMD problem, currently being experienced in the Central basin of the Witwatersrand area.

“We agreed that the DWA would take the lead role in coordinating the design and implementation of the interim solution, for which Treasury had made R225 million available, and that an implementation agent had been appointed,” Malaza says.

“Underground exploration is continuing,” he continues. “We have reduced personnel, regrettably, and developed a new business plan.”

The company expects 3.5 million euros worth of submersible pumps, with a 72 million litre a day capacity, to be delivered by August,


in order to protect the 250m level and enable gradual dewatering from December.CRG and Malaza feel that there is still insufficient clarity on key water issues, despite the South African government’s AMD report, including targeted minimum water levels, project engineering and technology, the role and responsibilities of the interested parties, cost allocation between interested and affected parties and timing to meet the degree of definition.

“While there is no doubt that this will all be resolved, everything hangs on the timing, which is disappointingly uncertain,” the company said in March.

“In the face of these uncertainties concerning depth, the obvious alternative is to increase development and mining in the upper levels,” it added.

Surface mining of up to 76,000 t of gold-bearing material will continue, probably until September, Malaza says.

To learn more about CRG visit www.crg-sa.com. END


I N N O V A T I V E

Geberit continuously introduces new and innovative products

to the market to satisfy the requirements of its customers.

By Ian Armitage

Waiting for a fl ight from Cape Town the other day, I stumbled across the airport’s toilets. In all honesty I can’t remember

much about them. I do remember a thought I had though: Where would I go if we didn’t have access to a toilet? What if there had been no toilet, no sanitation?

It is a simple fact, life without sanitation kills.

With that thought on my mind, I then started to wonder where the sanitation at the airport came from.

When I got home I did a Google search.I soon found that Geberit supplied the

toilets and sanitation to Cape Town Airport.So, it was them I had to thank. But who are they? Well, Geberit is a European market

leader in sanitary technology, with what it calls “fl ushing technology” as one of its

core competences. The company offi cially

entered the South African market in 2007 when it acquired AMS, the then exclusive importer of Geberit products locally.

“Geberit operates sales offi ces in more than 40 countries, including South Africa,” says Mark Schurr, operations director at Geberit Southern Africa. “I was one of the owners of the AMS business before we sold to Geberit,” he adds. “Having built the business up from nothing basically, I have a huge passion for taking it forward.

“Essentially now, we are much better positioned and we have a huge multinational behind us. I think it is improving our credibly in the

Geberit Southern Africa FEATURE


Geberit brand name products are innovative, durable

and ecologically efficient

country in terms of who we are and what we stand for.”

That said, AMS did a great job of raising Geberit’s profile prior to the acquisition. “Before AMS imported Geberit product, as a brand it was largely unknown and unavailable in South Africa,” Schurr says. “Yes, it was available in isolated cases but what has happened since we came on the scene is that we have largely changed the way that people do plumbing – putting concealed systems into a wall, for instance, was once unheard of. So, I think we have changed the way a lot of people can do things; that is our great achievement.”

Geberit is today a well-known and reliable supplier of sanitary solutions in the South African market. Its marketing concept is targeted at the plumbing trade, specialist wholesalers, specifiers and end users.

“We’ve grown a very strong brand here,” says Schurr.

Geberit continually invests in R&D and is committed to integrating sustainability

into all its work practices and products. Its range of products is designed for use in new buildings as well as in renovation and modernisation projects. It comprises six product lines in the two product areas of Sanitary Systems (Installation and Flushing Systems, Waste Fittings and Traps) and Piping Systems (Building Drainage Systems, Supply Systems).

“Geberit brand name products are innovative, durable and ecologically efficient and provide high-end sanitary solutions for retailers, plumbers, installers and end users,” says Schurr.

Close collaboration with customers and appropriate training and educational measures are important factors for Geberit’s success too and it has been involved in various high profile local projects including the Nelson Mandela Stadium, Cape Town Stadium, Crystal Towers Hotel, One and Only Hotel, George Airport, OR Tambo International Airport, Nedbank Phase II, Alice Lane Towers, Lynwood Bridge, AFGRI Head Office, Soweto Theatre, Killarney Mall Shopping Centre and the Moses Mabhida Stadium.

“Geberit continuously introduces new and innovative products to the market to satisfy the requirements of its customers,” Schurr adds. “Three such products are: the Geberit Monolith which offers a stylish new alternative to the traditional exposed WC; the new Geberit shower element where the shower drain is now in the wall, which is perfect for the floor even shower; and the Geberit DuoFresh, which discreetly extracts unpleasant odours from inside the toilet bowl, purifies the air and releases it back into the room.

“We have managed to build up a very strong brand awareness locally and have established ourselves as a company people know and respect. We are seen as innovative, durable and professional, with high quality products.


“There are many benefits to choosing any one of our systems.”

Indeed there are. The benefits of choosing a Geberit concealed cistern system are not just in terms of aesthetics (having all the nasty bits hidden behind a wall), they are practical and functional too:

Easy to clean toilets: Cleaning becomes much easier with a clear surface under the wall-hung WC, the cistern hidden behind the tiles or wall cladding leaving no exposed pipe work, ensuring hygienic surfaces in your bathroom.

Space saving: a Geberit wall-hung solution takes up less room than a conventional WC and the concealed installation offers flexibility in confined spaces.

Strength and stability: the toilet pan is bolted simply and securely to the installation element. In this sturdy construction, the toilet stays firmly in place and can support weights of up to 400kg.

Water saving toilet system: Geberit’s dual flush and stop flush system conserves water, saving money and the environment.

Accessible maintenance: Geberit cisterns are one-piece blow-moulded units and guaranteed not to leak. No need to break the wall - easy access, the actuator plate can easily be removed, providing ready access to all internal components. Geberit offers a 10-year service guarantee on their cisterns.

Silent filling and flushing cisterns: Geberit’s concealed cisterns are fitted with silent and fast action filling valves and quiet flushing valves, ensuring efficient, quiet and reliable toilets

Invisible luxury: Geberit solutions adapt perfectly to every environment, no matter how much or how little space is at your disposal, providing flexibility and the freedom to design a truly beautiful bathroom.

Creative bathroom design: Geberit’s discreet and stylish flush actuator plates come in a wide range of styles and finishes, so you can choose the one that perfectly complements your bathroom style.

Geberit enjoyed a boom off the back of local investment in infrastructure and the World Cup. It is now eying growth opportunities in Sub Saharan Africa and neighbours like Zambia. This is a player to watch.

To learn more about Geberit visit www.geberit.co.za. END

Geberit Southern Africa FEATURE



Free State based Interlam (Pty) Ltd., has been providing construction and engineering expertise to a number of industries,

especially mining. Fredrik de Beer tells South Africa Magazine what has made them so popular and how they intend on using that

popularity as a launch pad for further success.By Jane Bordenave

A S U P P O R T I N G I N F L U E N C E

Since it’s founding by Mike Taylor in 1978, Interlam has been involved in a wide range of civil engineering, steel fabrication and installation projects

within the mining and public administration sectors. In 2007, the business was taken over by Petros Kanellopoulos and Fredrik de Beer, who had both been with Interlam for over 20 years. The company is based in the city of Welkom, where it is ideally situated to meet the needs of the area’s large gold-mining industry.

Interlam has worked with a large number of top-name gold mine operators. Over the years, it has carried out numerous surface and underground works for AngloGold Ashanti, Gold Fields Mining Group and Harmony Gold Mine and continues to have good relations with them today. “At the moment we are focused mainly on underground projects, specifi cally for Gold Fields Mining Group and Harmony Gold Mine,” says de Beer. “These are both using our expertise using concrete in subterranean conditions to build cold water dams and protect the mines from fl ooding.” With regard to AngloGold, the nature of their relationship has changed. “Unfortunately, AngloGold no longer work in or around Welkom, having moved to Klerksdorp. Consequently, we no longer carry out large-scale engineering for them, but we do continue to work in partnership on a repair and maintenance basis as part of a yearly contract.”

Interlam is also well known and well respected among agencies of the Provincial Administration, as well as state entities. Most recently, it has been working with the engineering department of Eskom. “We have done a substantial amount of work for Eskom, particularly in the past two years,” says de Beer. “One example of the kind of work we have been doing is the construction of a chemical hazard storage unit, as well as new offi ces and workshops in the Alberton area.” In addition, the organisation has also recently completed a contract to paint Welkom’s newest shopping centre, Goldfi elds Mall. “This was quite a challenging project – we had a

very tight schedule to keep to and there was no fl exibility in the deadline. However, we were able to bring all our expertise and experience to the table and get the job done on time and to budget.”

While Interlam has had projects such as these ticking over for the past 12 months, really, de Beer says, it has not been an easy time recently. “To some extent, the global downturn has really only just reached us. South Africa in general fell into recession in 2009, but this kind of economic crisis always takes about a year to hit the construction industry, after it has hit everyone else. This is because construction works on long contracts so, in that sense, everything moves a bit slower. Consequently, this year has been a

Interlam FEATURE


We have done a substantial amount of work for Eskom

tough one and we believe that we have felt the full impact of the recession. We are hopeful though that next year, once our clients have finalised their budgets for 2011/2012, we will have a better pipeline of work and things will begin to pick up.”

To a large extent, though, de Beer believes that you make your own luck and that it is in times like these that a company needs to change its scope and outlook. “Over our history, we have been focused on work in the city of Welkom and its environs. While it remains the hub of gold and uranium mining operations in Free State, there aren’t a huge amount of opportunities around at the moment. For this reason, we are looking very seriously at starting to work on projects not just outside of Welkom, but outside of South Africa. There are some really interesting areas and developing markets in the rest of Africa – particularly in the centre

and the east of the continent. There is still a lot of production going on there, as the countries in those areas, and consequently their construction and mining industries, haven’t really been touched by the global economic crisis. So there are some real possibilities there.”

Interlam seeks to keep itself one step ahead of its competitors through dedication to quality and a strategy of continuous improvement. It is through these qualities that it strives to differentiate itself and hopes to succeed in new markets, as well as in and around Welkom. “Quality is our biggest asset and we pride ourselves on delivering a quality service on each of our projects,” says de Beer. “We are constantly using internally devised quality control mechanisms to ensure that our work meets the high standards not just that our clients


PROUD TO BE

ASSOCIATED WITH

INTERLAM

TEL: 057 396 2149

FAX: 057 396 2159

[email protected]

expect of it, but that we expect of it. Safety is of course also an extremely important aspect of our work and we ensure that our sites are as safe as can be.” In order to maintain its reputation in these areas, Interlam ensures that it keeps up-to-date with the latest advances in methods, mechanics and safety strategies. “We want to keep our people as safe as possible and our quality as high as possible and really, you can’t have one without the other.”

Another method of ensuring quality and safety is the training delivered to its staff. “We are constantly developing training procedures for our staff and updating them with any new safety techniques, or training them with new machinery.” Additionally, all the skilled workers, such as plumbers and carpenters, who work for Interlam have been trained by the company itself. “There aren’t really the opportunities for people to learn these trades in college or in a formal setting, so it is up to us to train them. This way, we can be sure that they have the knowledge they need to work for us and have been trained properly. Every single one of our artisan workers

started out as a labourer at Interlam. Most recently, we have had the pleasure of three of our employees passing their national tests in order to become officially recognised and certified as a plumber, a carpenter and an industrial painter, respectively,” says de Beer.

For the future, Interlam has a dual focu of short-term goals and long-term aims. “We hope that within the next year or so the country’s financial situation will be more stable, increasing consumer and therefore client confidence. That is our goal for the immediate future. In the longer term, we hope to have established ourselves as an expert provider of civil and steel engineering abilities to companies working outside South Africa. With our knowledge, pedigree and demonstrable ability, I am confident we will be able to achieve that.” END

Interlam FEATURE


bagSpecialising in the manufacture and distribution of refuse bags, Izaka Plastics is “dedicated to innovation and the development of modern flexible packaging solutions”.

I N T H E

P inetown-based Izaka Plastics is a leading manufacturer and

distributer of refuse bags. It produces HDPE and LPDE plain and printed refuse bags, and other plastic bags.

Since 2001, it has invested heavily in providing exceptional products and services through design, extrusion, printing, laminating and conversion of fl exible packaging.

“Client-specifi c requirements have always been met with great care and attention to detail - whether a unique application or a specifi c bag construction,” Production Manager Anwar Hayath tells South Africa Magazine. “We are ‘hands-on’, assisting clients from the initial product planning and design stage, right through to completion.”

Izaka, Hayath adds, has the tools, skills and resources – under one roof – to get any job done, “effi ciently and effectively”.

“Our equipment is professionally maintained to ensure minimal down-time and our experienced staff are energetic.”

The company has been an ISO 9001:2008 accredited company since 2009.

“Izaka Plastics provides the quality manufacture of sheeting, tubing, bags in LDPE, LLDPE and HDPE

Izaka Plastics FEATURE


Client-specific requirements have always been met with great care and

attention to detail

both printed and unprinted,” its website – www.izaka.co.za – says. “Izaka Plastics is a customer-oriented company focusing on the manufacture and distribution of a wide range of plastic packaging products. We service a diversified customer base, including packaging wholesalers, retail outlets, industrial packaging, corporate businesses, food outlets and municipalities.”

Izaka is a specialist company, dedicated to innovation and the development of modern flexible packaging solutions for a wide range of Industries. It aims to “become nationally and internationally recognised through our outstanding levels of quality, service and professionalism from our motivated and committed team who are proud of who we are, what we do and how we do it,” its website says.

10 YEARS IN THE MAKINGInaugurated in 2001, Izaka Plastics was founded by Sibusiso Michael Maziya, CEO, who is a qualified engineer and an astute and vibrant industrialist. In the early years, the company was only engaged in the manufacture of refuse bags. Today, it has grown considerably and expanded its operation to extrude and print on various types of bags, tubing and shrink film.

“Izaka’s plant currently comprises 12 bag-making machines, 11 monolayer extrusion lines, two co-extrusion lines, a slitter and two C I printing machines,” Hayath says. “Our equipment is maintained as per our


maintenance plan to ensure optimum production efficiency and minimum downtime,” he adds. “Qualified technicians and reputable suppliers and workshops are engaged to carry out our maintenance work. At our management review it was decided to purchase a pallet-wrap manufacturing extrusion line and a side seal bag-making machine.”

According to Hayath, further innovative expansion plans are being proposed and new equipment could well be brought in.

“It is an exciting future in what is our tenth year,” he says.

SOCIALLY RESPONSIBLEIzaka is proudly South African and is committed to the betterment and development of our nation. It has been independently rated by DRGSiyaya

in terms of Broad Based Black Economic Empowerment codes of good practice and is a Level Three Contributor to BEE.

“We at Izaka Plastics acknowledge that Black economic empowerment as defined in the BEE Act constitutes: “…An integrated and coherent socio-economic process that directly contributes to the economic transformation of South Africa and brings about significant increases in the number of blacks that manage, own and control the country’s economy, as well as significant decreases in income inequalities”,” the company’s website says. “Hence, we at Izaka Plastics are committed to Broad-Based BEE, aimed at the economic empowerment of all black people (including women, workers, youth, disabled people, and people living in rural areas) through: ownership; management; employment equity; skills development; preferential procurement; and enterprise development.”

Izaka Plastics is a socially responsible enterprise and makes various contributions to a number of charities and special programmes. “This is part of our social responsibility to the community,” the company says.

All printer cartridges are donated to ProjectPlus helpus2help.com in aid of the Endangered Wildlife Trust, for example.

“All scrap generated from production is disposed of in a controlled manner,” the firm’s website says. “Recyclable scrap is recycled by a contractor and returned for use in production. Other waste is dumped at DSW dumpsites. Solvents are recycled for further use in production. Most recently we have formed an alliance with Mondi Paper and DSW to install collection points throughout KZN especially to areas that were not previously accessible.

“Izaka Plastics incorporates in its business model a strict adherence to environmental best practices, and offers its customers the world class technologies of oxo-biodegradable

plastics using the additive d2w from Symphony Environmental Limited (UK),” it adds.

Izaka Plastics – a wholly owned subsidiary of Ancient Capital (Pty) Ltd – also recognises that training and development of staff is paramount to the success of any business. MERSTA funding allows it to continuously train and develop staff and all staff members are trained through the Plastics Federation of SA, as well as the Packaging Convertors Association, the company says.

“Drawing on our years of experience, we will guide you to achieve more than you ever set out to achieve...and all without breaking your budget,” Hayath concludes. “We have the strength, innovation, tools and enduring passion to deliver your desired look and feel, communicate your key messages and enhance the personality of your brand.” END

Izaka Plastics FEATURE


South Africa Magazine talks to SA Canopy managing director Tony Walsh.

By Colin Chinery

KINGSC A N O P Y

SA Canopy is one of the biggest canopy manufacturers in South Africa, supplying the local market and exporting into the sub-Sahara

region. A well respected and sought-after brand, its all inclusive range extends from sleek and low profi le units to standard high units – incorporating blank side options – and commercial Spacesavers, with a multitude of fi breglass and glass door options including full doors. “Playing hard, or hard at work, SA Canopy, as a slogan says, has the product to suit your requirements,” says MD Tony Walsh.

Headquartered in Port Elizabeth, SA Canopy manufactures – from its adjacent

plant – canopies for half and one ton light

goods vehicles. It is also the sole South African importer and distributor of Carryboy Canopies and accessories, the number one luxury canopy in Southern Africa. SA Canopy Centre is approved by and

has direct supply agreements with most of the major motor manufacturers and vehicle importers in South Africa

“We manufacture mid-range to commercial canopies and successfully marketed Carryboy as a luxury canopy,” explains Walsh. “South Africa is a very important market for them and our special association gives us a full product offer from luxury through to the commercial type that the plumber and the carpenter would use.”

A defi ning key to SA Canopy’s success is its franchise network of fi tment centres. “Our distribution, our route to market and ability to stock our franchisees with products are all critical.

“A canopy is not an impulse buy, and when somebody, whether a vehicle dealer or the man in the street, comes into one of our fi tment centres, they want a canopy and they want it today. If you haven’t got the stock they go to somewhere that has. But we carry the stock, and along with it the ability of our franchisees to service the market on demand.”

With a 25-year track record, SA Canopies is a well-respected brand, says Walsh. “If you are researching over the net and not through a dealer, we would hope our warranty (if fi tted by an approved SA Canopy Fitment Centre) – two years on the fi berglass

shell and a one year warranty on mechanical items - along with product features, the support we offer nationally, and our competitive pricing, would be enough to swing you to SA Canopy.”

Attracting and developing skills says Walsh, is an on-going problem, “but one that can be overcome” by identifying and investing

in people. “Of course before you train the individual has to have some cognitive ability to take that training on, and so we identify those with potential to grow,” he says. “Then we make the investment in training in a number of aspects from manufacturing techniques and technical skills to diplomas and appropriate degrees, with some of our people sent to local university or institutions offering specifi c training.

“Over the past two years we’ve been building – systematically – a technical department of engineers, invested heavily in the latest computer design equipment, in-house design and component development. We have absolutely no issues with investing in people; it’s part of our core philosophy.


Our vision is to be the

customer’s preferred

choice

brand, its all inclusive range extends from sleek and low profi le units to standard high units – incorporating blank side options – and commercial Spacesavers, with a multitude of fi breglass and glass door options including full doors. “Playing hard, or hard at work, SA Canopy, as a slogan says, has the product to suit your requirements,” says MD Tony Walsh.

Headquartered in Port Elizabeth, SA Canopy manufactures – from its adjacent

plant – canopies for half and one ton light

goods vehicles. It is also the sole South African importer and distributor of Carryboy Canopies and accessories, the number one luxury canopy in Southern Africa. SA Canopy Centre is approved by and

has direct supply agreements with most of the major motor manufacturers and vehicle importers in South Africa

“We manufacture mid-range to commercial canopies and successfully marketed Carryboy as a luxury canopy,” explains Walsh. “South Africa is a very important market for them and our special association gives us a full product offer from luxury through to the commercial type that the plumber and the carpenter would use.”

A defi ning key to SA Canopy’s success is its franchise network of fi tment centres. “Our distribution, our route to market and ability to stock our franchisees with products are all critical.

SA Conopy FEATURE

“We are also working very closely with the Engineering Faculty of the Nelson Mandela Bay University in Port Elizabeth, with regard to the placement of their engineers who need practical work,” Walsh adds. “This serves two aspects; it provides them with exposure to industry and at the same time exposes our people to students with a high level of capability and capacity. It’s a two way learning stream.”

The potential for profitability and success in the canopy manufacturing sector is measured by the availability of canopy-compatible vehicles entering the market on a monthly basis. And that market is in a state described by Walsh as one of “slow recovery”.

“In 2007 -2008 there were 204,000 light commercial vehicles sold in South Africa; in 2009, 94,000. In 2010 there was a recovery to 115,000 and at the moment we are experiencing growth of about eight percent. The market in other words has more than halved and is starting to recover. There’s a scarcity of lcvs, and it’s more and more difficult to maintain the sales levels of 2006-2007.

“Last year we had 15 percent growth in the light

commercial segment and it’s currently running at six and seven. This year they are forecasting between eight and 10. The Japanese situation hasn’t helped South African vehicle producers, with component and parts shortages that resulted in plant shutdowns at many of the local manufacturers for a number of weeks. The recovery figure is still at that eight percent mark but it’s becoming more and more of a struggle.”

Another issue is the availability and extent of disposable income. “The South African public has a very high debt to income ratio and credit has been an issue with banks having very, very stringent lending criteria. More recently there seems to have been a relaxation of credit, so we would expect to see growth continuing maybe eight to 10 percent over the coming years. But this is dependent on a number of factors, especially of course the strength of the national economy.”

SA Canopy’s philosophy says Walsh, works through every aspect of the business. “We are focused on our franchisees


SA Canopy FEATURE

COMPASS GLASS Pty LtdUnit A6, Brackenrite Business Park, Kruis Rd, Brackenfell.TEL: 021 9817785 FAX: 021 9827059

Compass Glass (Pty) Ltd is a wholly-owned subsidiary of the Mazor Group and was established in 2008 in first-class premises at Brackenrite Business Park in Brackenfell , Cape Town.

Through diligent and energetic Through diligent and energetic planning and mobilisation, Compass Glass are already a leading provider of architectural flat glass in South Africa and offer a comprehensive service to the Construction, Automotive and Industrial Sectors through a network of branches in through a network of branches in George, Port Elizabeth, East London and Johannesburg. Compass Glass have assembled a strong team of professional managers, supervisors , foremen and operators with an extensive range of experience in the Flat Glass Industry and the downstream processing of primary float glass into value-added products to service the Regional products to service the Regional Market. Our large pool of skills at every stage of our operation ensures that Customers will benefit in terms of quality and service exceeding best expectations and at competitive market-rates.

Our Range includes :Envirotuff Toughened Safety GlassEnvirosafe Laminated GlassEnviroseal Sealed Insulated Glass

UnitsEnvirosol Laminated Solar Control

GlassEnviro – E Low-E GlassEnviro – E Low-E GlassEnviroclad Ceramic Frit Silk Screen

Printed Glass Enviroprint Digital Ceramic Ink

Printed Glass

Plus a wide portfolio of water-jet Plus a wide portfolio of water-jet cutting and edge-working for top-quality architectural finish.

Cutting

Waterjet cutting

Toughening

Laminating

and their wellbeing, and similarly very focused on our employees, customers and shareholders. We always encourage the entrepreneurial spirit both within our business and franchise network.

“Our vision is to be the customer’s preferred choice and the leading supplier of canopies throughout sub-Sahara Africa. Our mission - which is related more to our short-term and what we do – is always to deliver consistent quality and competitive pricing through continuous improvement of our people, processes and products.

“SA Canopy products are all manufacturer-approved, providing the customer with the peace of mind that his or her vehicle is covered by the best. We want to be seen as an innovative company focused on delivering quality at a good price. We are a business building for the future.” END


ZIBO’s customer list reads like a who’s who of South African

retailers. How did they achieve it? MD Andre Smit has the answers.

By Ian Armitage

boxesboxescleverboxescleverboxesZ I B O

Cape Town-based ZIBO Containers is a manufacturer of rigid plastic containers for a wide variety of requirements within the food

packing industry.Products – for both for domestic and

export markets – are manufactured at its Saxenburg factory.

“ZIBO Containers and the preceding entities from which it has evolved is a long standing company,” says MD Andre Smit, who took over the reigns some 13 years ago. “In the early days ZIBO was a smallish company, only working in certain plastics, for instance, HIPS - high impact polystyrene; it had a quite

old and limited product range. We took it over in 1997 and from there we changed tactics from the sense that we started to work with different types of product and material and we also started to look at new technology and processes. How much has the company changed since? A lot. In those days it was basically producing for the bottom end of the market, a very basic

product range. It has evolved into a company with a national footprint and clients overseas – we serve the food packaging industry here in South Africa and in the export trade. Personnel grew from 30-odd people to 380, who we currently employ.”

Today, he says, ZIBO is a cutting edge manufacturer – by international standards – of rigid high-quality packaging containers, in clear or colours. It specialises in the full spectrum of fresh fruit and vegetables, mushrooms, prepared salads, processed foods and, Smit explains, “general-purpose applications of every type and description”. “Our products are popular throughout South Africa’s retail trade,” he says. “ZIBO’s customer list reads like a who’s who of the industry.”

ZIBO Containers (Pty) Ltd FEATURE


We have tried to stay at the forefront of raw materials technology

© Tamara Kulikova

Investment in state-of-the-art equipment and machinery, training and development has helped ZIBO reach the position it now occupies. “We have tried to stay at the forefront of raw materials technology,” says Smit. “I think that is an important factor. Then, we have always had a strong commitment to quality and we have things like the ISO 9001 and British Retail Consortium (BRC) accreditation; we have all the important food safety standards under the BRC.”

ZIBO is also registered with Sedex. And it has a well-rounded basket of experience, expertise and capability. “We are well positioned I think to assist any customer. We have

innovative packaging solutions.”During 2006 – an important year for ZIBO

– the company relocated its manufacturing arm to its new custom designed factory at

Kuilsriver in the Western Cape. “We also have fully stocked distribution centres in Joburg and Durban, which service the needs of our national customers,” Smit says. “ZIBO has performed quite well over the last years. We have had year on year growth between 15 and 20 percent over the past fi ve years and we keep on investing into the company. I think the customer base that ZIBO is servicing is getting more and more sophisticated and more and more demanding. That is the area in which we focus. We


We design the product;

we develop the product; we

manufacture the product;

we distribute the product;

and we do the aftersales

CONTACT

INFORMATION

PRODUCTS

TEL: 021 9496840/1FAX: 021 9496842E-MAIL: [email protected]

Reg. No. CK88/06787/23 VAT Reg. No. 4770133256

ES&B Supplies was formed in 1992. It has extensive experience in supplying and servicing theengineering and related fields.

The following products are available...Abrasives, Adhesives, Bearings, Abrasives, Adhesives, Bearings, Brushware, Castors, Compressors, Cutting tools, Electrical Accessories, Fasteners, Hand tools, Lubricants, Seals, Silicones, Tapes, Transmission, Packing Material, Power tools, Protective requisites, Paints, Welding equipment. Other Equipment or equipment. Other Equipment or Requirements are available on request.

want to give a complete customer service: We offer the customer an A to Z service. We design the product; we develop the product; we manufacture the product; we distribute the product; and we do the aftersales. We are trying to give an entire value chain to the customer. I think that is the focus that we will have in the future. Instead of having customers running around for their packaging or plastic packaging requirements, we want to be a fi nal solution, not only providing packaging but providing the service as well.”

So what of the future? And how will ZIBO grow? “We will continue to invest in new products and processes,” Smit answers. “We think that is the way to grow the company and that will carry on. We are committed to expansion and technology and new investment, and that is carrying on. We hope to grow the company by providing a good service

at an affordable cost to the consumer. “What is behind our growth story?” he

continues. “I think one key is always being there for the customer. There was a gap in the market for that, a niche – there were a number of packaging materials but nobody at that stage or during the process was prepared to walk that extra mile. We did. Now everybody does. As well as that we have continually invested in new technology and equipment and I think we are very competitive in terms of production speed and production cost, which gives savings to customers and gives us a good footing in the market. We can compete with anyone; we also explore new markets; and have created new markets in packaging. So it was not just a case of working in existing markets and competing for a share, it was also developing new markets.”

To learn more about ZIBO visit www.zibo.co.za. END

ZIBO Containers (Pty) Ltd FEATURE


Klamflex Pipe Couplings has been producing pipe connectors for nearly 50 years. However, as South Africa

Magazine finds out, it is in the last 20 years that the company has come into its own, and in a big way.

By Jane Bordenave

ConnectedB E T T E R

Founded in 1962, for 30 years Krugersdorp based Klamfl ex Pipe Couplings manufactured products solely for Viking Johnson, under

license from British company Victaulic. However, in 1992 Klamfl ex was spun-off and began production under its own name. Since then, it has grown to become an internationally renowned brand and is now the largest producer of pipe couplings, fl ange adaptors, stepped couplings and dismantling joints in the Southern Hemisphere.

It is a busy time for Klamfl ex. Over the past few years there has been an ever-pressing need for water infrastructure

within Africa, which has created increased demand for Klamfl ex products. “There is a defi nite trend throughout sub-Saharan Africa towards creating an increasing number of new water delivery projects,” says Wayne Poisson, marketing manager of Klamfl ex. “These projects, which fulfi l the promises made by

governments in the region, are very much our core focus, i.e., facilitating the delivery of clean water to the population, as well as the removal of waste-water.”

With only 50 employees, Klamfl ex is a highly streamlined business, producing top quality products for the international and South African markets.

A focused dedication to continuous improvement and on-going investment is key to the company’s continuous success in this area.

“We are constantly making investments in upgrading plant in our factories and ensuring we are up to date with the latest developments in technology,” says Poisson. “This allows us to provide our clients with the latest technology in our own products. This strategy also enables us to streamline our production process, meaning we can meet increased

Klamflex Pipe Couplings FEATURE


We take research and

development very seriously

demand without increasing the number of staff we employ.”

As well as investment, Klamflex also ensures continuous progress through a strong research and development programme.

“We take research and development very seriously and view it as an essential component in ensuring that our products are of the highest calibre,” says Poisson. “We have our own in-house R&D department who work to improve our products at all times. However, we also use external consultants, who are able to bring in new ideas and check for any oversights.”

Ever since it began operating under its own name, Klamflex has had a strong focus on markets outside the borders of South Africa. As well as working in African countries such as Zimbabwe, Malawi, Botswana, Zambia and Kenya; it also trades with companies in UK and Ireland, Middle East and Europe. “A focus on export has been a vital part of our business strategy for nearly 20 years, and so

it continues to be,” says Poisson. This strategy has been influential in gaining international accreditation such as American Water Works Association (AWWA) certificate C219-01, ISO 9001and WRAS approvals. “We are a manufacturer of quality goods,” Poisson adds. “And it is our commitment to high quality that makes us so competitive on the international market. Our export clients expect quality to be the utmost consideration and we have placed it at the heart of our business. If you do not have outstanding products at this level, you cannot successfully do business.”

However, what is an advantage in one sector can bring challenges in another. While Klamflex has both international and domestic clients, expectations of quality are quite different between the two. “We do not discriminate between these two groups of clients – the same quality expected by the export market is what we provide to South Africa,” Poisson says. “Unfortunately, this can open us up to the danger of undercutting. In


Klamflex Pipe Couplings FEATURE

Manufacturers of Flanges and Profile Cutting in Mild and Stainless Steel

Also Specializing in:Profile Cutting,

General Engineering,Cutting, Bending and Rolling

24 Rana Road, Isipingo Rail, Durban, 4000

TEL: 031 902 2977 FAX: 0319025946EMAIL: [email protected] / [email protected]

our business, it is not difficult to establish yourself in the South African market; we find that we are constantly finding ourselves competing against companies with only two or three staff. While we manufacture our parts ourselves, these small companies essentially operate as traders, importing goods from the Far East and then selling them on.”

These items often do not come up to the high standards offered by Klamflex, Poisson stresses. “It can be a real challenge, but we will not compromise on quality – it is our defining feature. So we like to impress that upon current and potential clients and demonstrate that better quality is, in the end, better value.”

It’s clearly an approach that has worked; export and domestic sales account for 50 percent of Klamflex’s business each. “Until recently, international sales used to account for a higher proportion of our revenue, but now the two sectors are equal. However, this is not due to losing any clients on the export


side, rather we have grown our domestic business to match it.”

For the future, Klamflex’s vision is focused on two closely linked areas – innovation and growth.

“Within the next five years we intend to have doubled the size of the company,” says Poisson. “We have identified some exciting new markets, particularly in Africa, but we haven’t forgotten about our current clients either; we are in the development stages of a number of new products to add to our range that will be specifically targeted at them.”

A 100 percent growth plan is an ambitious for any business. That said, Klamflex did not get to be the southern hemisphere’s biggest manufacturer of pipe connectors by accident, nor by being coy. This holistic approach examines every avenue for organic growth and determines how best to take advantage of it. In the face of such experience and such clear determination, how could anyone doubt that by 2016 this goal will be achieved? END


AfricaInS I E M E N S H E A L T H C A R E :

F O R

A F R I C A ,

Siemens’ philosophy has always included more than just business - it works hard to help communities.

By Ian ArmitageHealthcare is demanding and

South Africa’s public health system faces severe challenges. HIV/AIDS, TB, staff shortages

(South Africa has roughly 393 nurses and 74 doctors per 100,000 people), and affordability are amongst the most pressing. There are other problems too. Part of the solution, says Siemens Healthcare is in modern equipment and public-private partnerships.

As a business, Siemens is making considerable progress in helping deliver better healthcare; Improvements are evident in several of our major towns and cities. Soon things will get even better. “The National Health Insurance programme is on its way and will be implemented over a 14 year period – it will see huge change in the sector,” says CEO of Siemens Healthcare, Helen Brown.

Under the African National Congress’ plan, agreed last September, South African’s will get universal access to healthcare, with contributions from taxpayers making up for all those who can’t afford their own contributions.

“It will require government to boost investment in hospitals and train more nurses and doctors,” Brown says.

The health insurance plan is estimated to cost R128 billion in its first year, rising to R267 billion by 2020.

“This is a huge step forward but it can’t be said we aren’t already doing our part… We already play a role in terms of public sector patients being treated alongside private patients,” Brown says. “The Walter Sisulu Initiative is a great example. In rural areas, patients do not get diagnosed properly and lack access to the same healthcare as those in built-up areas. The reason for that is a lack of experienced staff, in most cases, as well as limited access to the right equipment. We worked with Netcare on this in a public-private partnership to change that and have made huge strides forward.”

Brown says that currently just 20 percent of the population receive medical care in the

Siemens Healthcare FEATURE


S I E M E N S H E A L T H C A R E :

private sector. Under the new system, everybody would have access to that healthcare.

“I think we really have to start getting past the divisions that exist in South Africa and we need a system that cares for all people and offers them all quality healthcare,” Brown explains. “These changes are a great opportunity for companies like Siemens. The challenge is obviously offering the same healthcare to everyone, reducing overall costs, developing new and fl exible systems and helping to bring some of the patients who do not have private insurance coverage into private hospitals... public and private have a lot to offer and learn from each other in this respect.”

Examples of Siemens’ approach in practice are Netcare’s Sunward Park Hospital and MediClinic’s Gape Gate Hospital, where Siemens installed its latest “state-of-the-art Hybrid OR solution,” says Brown. “Through these installations of high-tech equipment from Siemens, South African Healthcare remains at the forefront of international standards,” she explains. “These hospitals are the fi rst in Africa to have cutting edge Artis Zeego. The system is entirely unique hybrid operating room that accommodates cardiothoracic, vascular

as well as neurological procedures. The Artis Zeego is an interventional C-arm system that employs robotic technology, which allows that hospitals are able to provide outstanding care to a broad spectrum of patients. The system allows for complex procedures to be less invasive making is safer and allowing for potentially shorter hospital stay for the patients. All this, together with CARE (Combined Application to Reduce Exposure) solutions, serves as proof that Siemens Healthcare constantly strives for improved patient care and safety as well as for the

system users.”The technology also

ensures more effective treatment of a patient, resulting in earlier disease diagnosis, ensuring that the correct therapy is provided


Siemens has already established

itself as one of the larger global

healthcare technology suppliers


to the patient, shortening the length of stay in a hospital and ensuring an earlier recovery.

“At Siemens Healthcare we pride ourselves on the fact we provide diagnostic solutions for the management of diseases such as HIV and breast cancer, from diagnosis and prognosis through to therapy and monitoring,” says Brown. “Healthcare providers are able to acquire all the products and solutions for the entire range of patient care from a single source - us.

“Another key to our approach is that we always keeps the client in mind, and, with user-friendly software, our systems usually require minimal training to operate and we have a long history and strong footprint in

Africa,” she adds. As CEO of Siemens Healthcare, Brown

is responsible for the entire healthcare business in South Africa and South East Africa. This portfolio includes Imaging and Therapy, Clinical Products and the Diagnostics segments within the Healthcare business. Her career spans two decades and her vast experience includes laboratory and clinical work, procurement, sales, information systems, marketing and general management as country manager for a major medical diagnostics company.

“Following the acquisition and consolidation of Dade Behring and Bayer Healthcare Diagnostics, the new Siemens Healthcare


Diagnostics (SHD) (Pty) Ltd. was born and there began my career at Siemens,” Brown says. “I steered the business through that merger, helping it grow and I’m now responsible for the entire healthcare business in South Africa and South East Africa.”

Her challenge is to continue to grow the business while still keeping costs under control.

“Siemens has already established itself as one of the larger global healthcare technology suppliers, not to mention a market leader in supplying products and services to the specialised fi elds of diagnostics, therapeutic technologies and knowledge processing,” she says. “We’ve been active in South Africa for almost 150 years since the installation of the fi rst telegraph line from Cape Town to Simon’s Town and today offer a balanced

portfolio of technologies.“We are focused on

Africa,” Brown continues. “It is a wonderful and most encouraging indication of just how seriously we take this continent. It sends out a clear signal that Africa is fi rmly on our radar and the expectations are high. The market potential in Africa is extremely large and we are very excited about our business prospects.”

Brown says Siemens is “in Africa for Africa” and is proud

of the work she is doing.“We are in Africa for Africa...

and I feel very privileged to work for Siemens, a company that has a great culture and is a brand leader,” Brown says. “Our service offering is superb.” END



The Siemens Healthcare Sector is one of the world’s largest suppliers to the healthcare industry and a trendsetter in medical imaging, laboratory diagnostics, medical information technology and hearing aids. Siemens offers its customers products and solutions for the entire range of patient care from a single source – from prevention and early detection to diagnosis, and on to treatment and aftercare. By optimizing clinical workfl ows for the most common diseases, Siemens also makes healthcare faster, better and more cost-effective. Siemens Healthcare employs some 48,000 employees worldwide and operates around the world. In fi scal year 2010 (to September 30), the Sector posted revenue of 12.4 billion euros and profi t of around 750 million euros. For further information please visit: www.siemens.com/healthcare.

Documents

SA Mag - Issue 16