SA Mag - Issue 23

PEoPLE cuLturE trAvEL ProPErty BuSInESS WInE SPort EntErtAInMEnt

Marsh Alexander Forbes acquisition builds Marsh platform in Africa

ADTADT is South Africa’s largest private security company

MetrobusMetrobus recently revised its routes for the first time in five years

Afena capital The next 50 years “have to be Africa’s”

ISSuE 23 r40.00

ABB CEO Carlos Poñe backs Zuma’s

‘industrialise SA’ call

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5th Anniversary Advert_RR_Full Page 180mm(w) x 250mm(h).pdf 1 1/10/2012 11:46:53 AM

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ZUMA UNVEILS MASSIVE INDUSTRIALISATION PLANPresident Jacob Zuma’s latest State of the Nation address was his best yet. It was full of promise and he’s pledged to boost the economy, skills and jobs with a massive infrastructure development drive.

Zuma announced the government’s investment plans for the next seven years, which will span the provinces.

“The market demand strategy will result in the creation of more jobs in the South African economy, as well as increased localisation and black economic empowerment. It will also position South Africa as a regional trans-shipment hub for sub-Saharan Africa and deliver on NEPAD’s regional integration agenda,” he said.

Zuma’s ‘Industrialise South Africa’ call received a powerful welcome from Carlos Poñe, CEO of leading power and automation technologies corporation ABB South Africa.

On page 18, he talks of his optimism, but carries with it a warning: “Of course new investments into South Africa, in railways, power, renewables, energy effi ciency and solar, are very exciting for us,” he says. “But we must make sure that municipalities walk the talk and give priority to local industries.”

It’s a theme fast gaining momentum in South Africa. The buying power of the state is now moving behind local manufacturers, with a new law allowing the government to name sectors and products that must show a minimum level of local content to qualify for state procurement.

“In South Africa alone we will see 40 gigawatts of electricity capacity built in the next 20 years, and this will be accompanied by new investments into transmission and distribution,” says Poñe.

This is just one of several fascinating insights in this month’s magazine. We have much more inside and I hope you enjoy reading.

Ian ArmitageEditor

EDITORIAL Editor – Ian ArmitageSub editors – Jahn Vannisselroy Marie TomsTom Sturrock Writers –Colin ChineryJane BordenaveJohn O’Hanlon

BUSINESSAdvertising Sales Manager – Andy Ellis Researchers – Jon JaffreyMarie SmithElle WatsonSandra ParrMarcus GrahamSales – Andy WilliamsSales administrators – Katherine EllisDaniel George

ACCOUNTSFinancial Administrator –Suzanne Welsh

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

DIGITAL & ITHead of digital marketing & development – Syed Ahmad

TNT PUBLISHING CEO - Kevin Ellis Chairman - Ken Hurst Commercial - David AlstinPublisher - TNT Multimedia Ltd

TNT Multimedia Limited, Unit 209, 16 Brune Place, London E1 7NJ

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SUBSCRIPTIONS Call: +44 (0) 1603 [email protected]

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262626262626 8686868686864 www.southafricamag.com

06 NEWSAll the latest news from

South Africa

12 INTERVIEW Margie OrfordFrom being detained as a student activist by the police to being taught to shoot by them – it’s been an exceptional journey for top-selling South African crime writer Margie Orford

16 OPINION Is your data giving you

headaches?Gary Allemann, senior consultant at Master Data Management, says that solving the data quality problem will provide a painkiller for the majority of data headaches

18 ABB

26 BRITISH AMERICAN TOBACCO (BAT)

SOUTH AFRICA

36 ACSA

48 MARSH

56 AFENA CAPITAL

64 ADT

72 SENEKAL SUIKER BOERDERY

80 BP

86 CARGO MOTORS

92 ACTI-CHEM

98 BRIGHTS HARDWARE

102 COLEUS PACKAGING

106 LAKE HARVEST AQUACULTURE

114 METROBUS

118 SAR SA

124 REFRALINE

128 SA POST OFFICE

132 MILLTRANS

REG

ULA

RS

FEATUR

ES


contents FEATUR

ES

PEOPLE CULTURE TRAVEL PROPERTY BUSINESS WINE SPORT ENTERTAINMENT

Marsh Alexander Forbes acquisition

builds Marsh platform in Africa

ADTADT is South Africa’s largest

private security company

MetrobusMetrobus recently revised its

routes for the first time in five

years

Afena Capital

The next 50 years “have to

be Africa’s”

ISSUE 23 R40.00

ABB CEO Carlos

Poñe backs Zuma’s

‘industrialise SA’ call

He outlined a number of plans and gave details of what he said was a streamlined cluster of major projects involving mainly Limpopo, Mpumalanga, North West, the Eastern Cape, KwaZulu-Natal and the Western Cape.

He also announced moves to cut the cost of doing business and said he had asked Eskom to find ways of keeping future electricity price-hikes in check.

6 www.southafricamag.com

Lifestyle

Jacob Zuma’s latest State of the Nation address was full of promise and he’s pledged to boost the economy, skills and jobs with a massive infrastructure development drive.

Nothing new there, you might think - Government has been pushing infrastructure as a means of kick-starting the economy and reducing unemployment since at least 2010.

However, Zuma’s promises have been widely welcomed as a step in the right direction.

Cosatu general secretary Zwelinzima Vavi said Zuma’s fourth State of the Nation address, delivered at Parliament, “pressed all the right buttons”.

Zuma was relaxed and confident as he delivered what many considered his best State of the Nation address yet.

Zuma’s state of the NatioN address presses ‘the right buttoNs’

All the latest news from South Africa

South Africa is to issue a complete set of banknotes bearing the image of its first black president, Nelson Mandela.

The South African Reserve Bank announced that it was “in the process of producing” the notes.

“In consultation with President Jacob Zuma and the Minister of Finance, Pravin Gordhan, it was agreed that the new note series will be designed,” a statement read. “The currency will have the same denominations, sizes and colours but the front of all notes will carry a specially designed engraving of former President Nelson Mandela. The reverse side of each denomination will have an image of one of the big five.”

President Jacob Zuma said the banknotes were a “humble gesture” to express South Africa’s “deep gratitude”.

“With this humble gesture, we are expressing our deep gratitude as the South African people, to a life spent in service of the people of this country and in the cause of humanity worldwide,” Zuma said.

Advance notice of the news conference at the central bank had briefly rattled the markets.

No date for the release of the new notes has yet been announced.

sa to issue maNdela baNkNotes


amplats earNiNgs dowNAnglo American Platinum (Amplats), the world’s largest platinum producer, has announced that its earnings for 2011 fell by 29 percent.

It said a government drive to stem the death toll in the South Africa’s mines forced it to halt production 81 times for safety reasons, over double the 2010 figure.

“While we agree with the need for the regulator to stop operations for non-compliance, the key issue is the nature of stoppages and their effectiveness in addressing real risks,” the company said in a statement.

Amplats meanwhile reported an operating profit of R7.97 billion for the year ended 31 December 2011, a 10 percent increase.

Operating free cash flow also increased by 21 percent, to R9.41 billion. Amplats warned however that output would be flat in 2012.

CEO Neville Nicolau said: “We are pleased with our strong financial performance. Anglo American Platinum expects the platinum market to remain in balance in 2012.”

BusinessMoney


Zambia is celebrating winning a first Africa Cup of Nations title after beating tournament favourites Ivory Coast 8-7 on penalties in the final.

Zambia have been runners-up twice and have been inspired throughout the tournament by the loss of the 1993 Chipolopolo team after a plane crash close to the venue of the final in Libreville.

The last time the southern African country reached the final in 1994, it was just a year after 18 Zambian team members died as they took off from the Gabonese capital.

After 14 kicks were converted, Kolo Toure and Gervinho failed to find the target for the Ivorians as Zambia’s Rainford Kalaba also blazed over.

Stoppila Sunzu converted the winning penalty, finding the top corner to complete an unlikely victory.

Ivory Coast’s Didier Drogba missed a 70th-minute penalty to deny his team victory inside 90 minutes.

South African President Jacob Zuma has unveiled a R1 billion fund for low-income earners who struggle to obtain home loans from banks.

Under the plans, people earning between R5000 and R15,000 will be granted an R83,000 subsidy from provincial governments to make it easier for banks to approve their loan applications.

This would cater for a significant number of people who do not qualify for RDP houses but who earn less than required to qualify for a home loan, Zuma said.

The fund would become operational in April and be managed by the National Housing Finance Corporation.

Greek MPs have approved a deeply unpopular austerity bill, demanded by the eurozone and IMF in return for a second bailout and to avoid national bankruptcy.

Altogether the vote was carried by 199 in favour to 74 against. 43 deputies from the two parties in the government of Prime Minister Lucas Papademos, the socialists and conservatives, rebelled by voting against it. They were immediately expelled by their parties.

The Greek people have reacted with anger, with thousands protesting in Athens and cities across with country.

Protesters outside parliament threw stones and petrol bombs, and police responded with tear gas. Scores of police and protesters were injured.

Prime Minister Lucas Papademos urged calm, insisting that the austerity package would “set the foundations for the reform and recovery of the economy”.

Zambia celebrate africa cup of NatioNs

wiN

r1bN boost for waNNabe homeowNers

greek mps pass New cuts

Property

Eurozone

Sport


Retailer Pick n Pay has announced that its CEO Nick Badminton will resign at the end of February.

Mr Badminton, who has been the CEO of the Cape Town-based company for five years, said he was stepping down to spend time with his family.

“I think that it’s a good time for me to take a sabbatical to spend some quality time with my family and my bicycle,” he said in a statement.

“When I came in as CEO, we became singularly focused on the transformation of

pick N pay ceo resigNsSport

Pick n Pay,” he added. “This transformation was centred on winning with our customers. It included improving our product offer and our stores, which necessitated large investments in our operations, particularly the implementation of SAP and centralised distribution. We also converted Score to Pick n Pay. The most important and significant changes necessary to transform Pick n Pay have now either been made or are well advanced in their implementation.

“I feel that I’ve now completed what I set out to do.”

South Africa’s growth will slow to 2.7 percent this year as global financial woes put the brakes on the continent’s biggest economy, Finance Minister Pravin Gordhan has warned.

The forecast is lower than the economy’s expected 3.1 percent growth last year, and far lower than the seven percent the government has said is needed to make a dent in South Africa’s crippling unemployment rate. “The South African economy has

sa ecoNomy to slow to 2.7% growthEconomy

averaged about three percent growth a year since 2009. Against the background of the slowdown in the global economy, real GDP growth is likely to fall to about 2.7 percent in 2012,” Gordhan said.

“We expect a recovery to 3.6 percent and 4.2 percent growth in 2013 and 2014, but these are modest rates of

expansion relative to the social and developmental challenges we face and the opportunities that our mineral wealth and human capabilities offer.

“We have to implement a strategy for faster and more inclusive economic growth. We are not doing well enough in growing our economy and creating jobs for our young people.”


Mining

President Jacob Zuma has squashed more than two years of talk about the nationalisation of South Africa’s mining sector, saying state control or ownership would not work.

Asked if the government planned to nationalise mines, Zuma said: “We’re very clear. It is not our policy. We’ve been saying this inside the country, outside the country. It cannot be.”

He said the ANC Youth League under the leadership of Julius Malema had raised the issue and, as was the norm, it would be discussed at ANC policy conferences.

“It is only that decision of that conference.

Mining production in South Africa rose by 0.3 percent in the fourth quarter of 2011 compared with the third quarter of 2011 after two quarterly declines, Statistics South Africa (Stats SA) has reported.

Zuma squashes miNe NatioNalisatioN talk

sa miNiNg productioN up iN q4

We do not do things in secret... It does not mean that [because] one person has a view it is policy,” he said.

“Please, nationalisation is not the ANC or government’s policy.”

Zuma’s comments lay to rest two years of debate that hit South Africa’s image as an investor-friendly emerging market.

Eight of the 12 mineral groups and minerals contributed positively to the 0.3 percent increase, with coal being the main contributor with a 1.8 percentage point contribution.

Of the four mineral groups and minerals that contributed negatively, platinum group metals (PGM) was the biggest.

Despite the quarterly rebound, mining production was still down year on year.


The South African government has announced plans to set up a R1.6 billion plant to manufacture active pharmaceutical ingredients for antiretroviral medicines (ARVs) used in the treatment of HIV and Aids.

The plant, dubbed Ketlaphela, which will be built near Pelindaba in Gauteng, is a joint venture between the SA government, through Pelchem (Pty) Ltd, and Swiss company Lonza Ltd.

“This joint venture will establish the first pharmaceutical plant to manufacture active pharmaceutical ingredients (APIs) for antiretroviral medicines in South Africa,” Science Minister Naledi Pandor told journalists in Cape Town.

Pandor said the new company would be funded by a capital investment of R1 billion by various state institutions, including the Industrial Development Corporation; more than R500 million from Lonza; and R100 million from Pelchem, a subsidiary of Necsa (Ltd), the Nuclear Energy Corporation of SA.

South Africa currently imports the APIs needed to manufacture antiretrovirals.

sa to build r1.6bN pharmaceutical

plaNt lamola: malema will remaiN our

leader

Politics Healthcare

Suspended youth league president Julius Malema’s political career has been thrown a lifeline by Ronald Lamola, deputy president of the league, who said Feb 13 the ANC youth league “will never agree that its leadership is subjected to unfair and unjust (procedures) or banished for narrow political purposes”.

He said the leadership “has been elected by the 24th national congress of the youth league and remains in office as elected members of the national executive committee.”

He said only the internal processes of the league could decide to elect or remove its leadership, adding that the ANC carried an obligation to educate and guide the youth league on all issues, and should not persecute its leadership for articulating the league’s views.

He said the current leadership would remain in place until June 2014.

Malema was found guilty of sowing divisions and bringing the party into disrepute by an ANC disciplinary committee.


once upon a life: In 1985, the crime writer Margie orford was thrown in jail by South Africa’s apartheid police. the experience defined her. After travelling widely she returned to South Africa in 2001 and now lives in cape town, the setting for her Dr clare Hart series.By Susan Miller

interview: Margie Margie Margie OrfordOrfordOrfordMargie OrfordMargie Margie Margie OrfordMargie OrfordMargie OrfordMargie Margie Margie OrfordMargie

F rom being detained as a student activist by the police

to being taught to shoot by them – it’s been an exceptional journey for top-selling South African crime writer Margie Orford. The author of four books featuring Dr Clare Hart, she’s reached the top of the crime lists.

I spoke to her about her writing and fi rst, why crime?

“I didn’t actually decide on crime but after going back to live in South Africa in 2001 I wanted to write about how stratifi ed society still was. There are only two kinds of people who can believably go from – for example the President’s cocktail party via Clifton to a shebeen in Gugulethu – one is a journalist and the other is a cop.”

Margie decided on protagonist Dr Clare Hart because as a part-time criminal profi ler for the police she can enter the different worlds. Margie could also try and answer her own questions through writing.

“I was a journalist, we’re simple creatures, we say why? South Africa was very violent, there was a lot of crime when

Interview: Margie Orford LIFEStyLE


South Africa was very violent, there was a lot of crime when I got there and I said ‘why?’ Part got there and I said ‘why?’ Part of this series has been a way of

exploring that

ABOUT MARGIE ORFORD

BOOKS:Gallows Hill 2011Blood Rose 2010Daddy’s Girl 2009Like Clockwork 2009

Margie was born in London, grew up in Namibia and was educated in South Africa and the US. She was detained under the then State of Emergency in 1985 as a student activist. After travelling widely she returned to South Africa in 2001 and now lives in Cape Town, the setting for her Dr Clare Hart series.

Read her blogs at margieorford.bookslive.co.za or visit margieorford.com

I got there and I said ‘why?’ Part of this series has been a way of exploring that.”

While she acknowledges those who say we can’t keep on blaming apartheid, she feels we have to look at the past to understand the present.

“I think we lived through a civil war that was not acknowledged ... You have the legacy of 350 years of extreme violence – slavery, colonialism, British Imperialism, apartheid – it doesn’t just go.

“It seems to me that the aggression has gone into the intimate spaces – the body, the family...”

Margie’s understanding of policing was bolstered by her close work with the police. “Obviously I had not had the nicest time at their hands but what was interesting to me was how the transition

to democracy was meant to be implemented by the institutions and the people whose jobs fi ve minutes before had been to implement apartheid.

“They’re very regular blokes, most cops – they’ve even taught me to shoot... (laughs)... Some describe policing in South Africa as ‘armed social work’. Of 85 percent of murders, people kill people they know...”

Most of the Clare Hart books are set in Cape Town, with the exception of Blood Rose which was set in Namibia where Margie grew up. I wondered how important geographical setting was to her?

“It’s very important. It’s about the psycho-geography. I feel I ‘get’ Cape Town and its rhythms. I never thought I could get Johannesburg, but after a recent


visit I think I may fi nally have a Joburg novel coming...

“A lot of crime writers are associated with cities like Ian Rankin and his Rebus series. Edinburgh is a character in the books.”

Fellow Capetonian Deon Meyer is also selling well overseas. I wonder if they could be spearheading a South African crime writing wave, emulating the Scandinavian ‘takeover’ of the crime genre in books, TV and fi lms.

Margie laughs. “Yes, we will force them back into the North Pole!”

But she’s serious about what she’s trying to achieve. “We’re trying to get underneath the skin of ordinary people and fi nd out how they survive the sometimes intense experiences of the country. We need overseas people to respond to the bigger picture. We’re complex and not always fraught or serious, we’re often hilarious as well!”

The takeover is still on the cards as the fi lm rights for Blood Rose have been optioned. I asked if authors like Margie feel jealousy over how their characters are portrayed onscreen?

“Not even a bit. It’s like when your children fi nally get off to school and you say ‘thank God’ now it’s the teachers turn to take charge.”

A lot of crime novels are getting increasingly grisly, where does she fi t in on the bloody barometer?

“My books are more frightening than a spectacle of violence. A lot of crime fi ction involves a huge amount of violence against women and I get a bit pissed off with it. I am more interested in looking at the psychology behind it and creating a sense of fear. Some writers like Patricia Cornwell get to a point where the blood is splattering off the pages onto your glasses. I prefer to keep it offstage.”

Margie travels a good deal to crime festivals and says the camaraderie between crime writers is exceptional.

“You’ll often fi nd two or three of your favourite writers sitting chatting away together. I think part of it is because of the kind of audience we have. People who love crime novels often don’t just follow one author. They’ll buy across the genre so we don’t have to be all jealous of each other”.

What should we expect from forthcoming fi fth book Water Music?

“I am looking at those who are attracted to religious sects or cults. I interviewed a number of ‘extreme’ Christians. Sometimes I would realise that these were the very same kind of people who were in charge of our country during apartheid and you just think ‘but you’re nuts and you were in charge’. Their extreme beliefs were what we lived by...”END


Interview: Margie Orford LIFEStyLE

We’re trying to get underneath the skin of ordinary

people and find out

how they survive the sometimes

intense experiences

of the country. We need overseas people to

respond to the bigger

picture

T he digital revolution has given rise to a literal explosion of data, as the volume of information

shared, distributed and stored increases exponentially on a daily basis. An ever-growing list of regulatory compliance adds to the burden, generating masses of additional data that needs to be managed. This is further complicated by emerging trends such as big data, cloud data, change data capture, data integration, data analysis and so on. To add to these challenges, businesses need to manage a data avalanche on an ever-tightening budget, and there’s really no wonder that data has become the source of so many business woes, causing the proverbial headache.

Compliance generates reams of data that need to be managed, adding complexity onto an already overwhelming data environment. The reality is that compliance is a burning pain for organisations across all industries and sectors, with a long

and continuously growing list of compliance legislation and guidelines including: Sarbanes Oxley; King III; The Protection of Personal Information Bill (POPI); Basel II and Basel III; Solvency II; the Consumer Protection Act (CPA); the Financial Intelligence Centre Act (FICA), the Regulation and Interception of Communications Act (RICA), Legal Entity Identifier (LEI), Public Finance Management Act (PFMA) and the latest Foreign Account Tax Compliance Act (FATCA).

A report recently issued by Aberdeen Research indicates that almost half of finance employees are “challenged by the fact that their organizations are leveraging risk and compliance data in different formats, making it difficult to compare data.” According to the report, complying with regulations is a key concern for CFOs. And a distressing number of respondents indicated that the existing IT infrastructure is lacking in the advanced capabilities needed to support governance, risk and compliance (GRC) initiatives.

This is far from the end of the problem, however. Gartner predicts further headaches, stating that, “by 2016, 20 percent of CIOs in regulated industries will lose their jobs for failing


By Gary Allemann, senior consultant at Master Data Management

O p i n i O n p i e c e : I S y o u r D A t A G I v I n G y o u H E A D A c H E S ?

to implement the discipline of information governance successfully”. Gartner also recommends that these regulated businesses invest in information archiving technology in order to bring data under control.

While Business Intelligence (BI) is touted as the answer to help businesses make sense of their data avalanche, the reality could not be further from the truth. BI has become yet another headache for organisations, along with Master Data Management (MDM), Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), Extract Transform Load (ETL) and a host of other tools. Despite the lauded ability of BI to help businesses improve decision-making, the majority of BI implementations fail or never get off the ground.

One of the main reasons for this failure is the fact that the underlying data is fragmented, duplicated, inaccurate, irrelevant, and outdated. While BI has the potential to deliver fast, reliable information and ‘intelligence’ along with a single version of the truth, this entire house of cards is balanced on one single point of failure – the quality of the data.

Maintaining accurate data, which in turn facilitates

compliance and paves the way for successful BI and MDM, is key in providing the cure for data headaches. However, this typically proves to be a major challenge, mainly due to inefficient processes or reliance on inappropriate technology. Various people may have different ways of documenting the same information and without processes and tools in place to ensure standardization: this leads to duplication and inaccurate data.

Fortunately there is a remedy at hand. Data governance - a combination of disciplines, improved processes and the right technology. If pragmatically applied data governance should assist business to cut through the overload and identify and address the critical data issues that will drive the biggest returns, resulting in clean data that deliver results and information that is accurate. Quality data delivers insight based on fact rather than guesswork, addressing myriad compliance regulations and is the key to successful BI, MDM, CRM and back office implementations.

Solving the data quality problem will provide a painkiller for the majority of data headaches.END

Is your data giving you headaches? oPInIon


While Business

Intelligence (BI) is

touted as the answer

to help businesses make sense of their data avalanche, the reality

could not be further from

the truthGary Allemann, Master Data Management

CONTACT:Master Data ManagementGary Allemann, Senior Consultant

Tel: +27 11 485 4856Email: [email protected]


President Zuma’s announced programme of huge investment in infrastructure and skills is to be followed later this year by

a summit to discuss investment opportunities in a wide range of projects in all nine provinces. While supporting the broad

strategy ABB cEo carlos Poñe tells South Africa Magazine that the focus must be on companies that create employment, raise

skills levels and bring new technologies.By colin chinery

p resident Zuma’s ‘Industrialise South Africa’ call - the multi-billion rand

infrastructure and investment drive heralded in his recent State of the Nation speech - gets a powerful welcome from Carlos Poñe, CEO of leading power and automation technologies corporation ABB South Africa. And along with it, a challenge: No one disputes inadequate infrastructure is inhibiting South Africa’s long-term efficiency and competitiveness. Or that investment is a pre-requisite for increasing GDP and employment. “Of course new investments into South Africa; in railways, power, renewables, energy efficiency and solar, are very exciting for us.

“But we must make sure that municipalities walk the talk and give priority to local industries,” says Poñe.

It’s a theme fast gaining momentum in South Africa. The buying power of the state is now moving behind local manufacturers, with a new law allowing the government to name sectors and products that must show a minimum level of local content to qualify for state procurement.

“In South Africa alone we will see 40 gigawatts of electricity capacity built in the next 20 years, and this will be accompanied by new investments into transmission and distribution,” says Poñe.

“But outside Eskom our distribution network is in urgent, urgent need of refurbishment. We tend to criticise Eskom, but many times the problems have nothing to do with Eskom but rather with the weakness of our distribution network.

“We need to make sure municipalities and Government invest in the distribution network, and that electricity is available not just for all citizens but sufficient to drive industrial development in South Africa.”

Poñe speaks as the head of a corporation that is walking the walk.

A global leader in power and automation technologies, improving performance while lowering environmental impact, ABB has been in South Africa since 1992. With a wide range of power and automation technologies solutions and a comprehensive product and service portfolio, ABB South Africa has a strong local manufacturing capability, employing over 1500 across three manufacturing sites.

And recent order book entries trail-blaze the kind of industrial innovation, competitiveness and drive that Zuma and many others believe must become the norm if South Africa is to resolve its economic and social issues. Growth points include:

Afive-yearfullservicecontractwithNampakCorrugatedtomanagemaintenanceandimproveoverallefficiencyatthecompany’sRosslynPaperMill,Pretoria.

AR98millionorderfromSasolforthereplacementofmedium-voltageswitchgearatfoursubstationsinMpumalangaProvince.

AR72millionorderfora220/33kVturnkeysubstationtoelectrifyanopencastcoilmineprojectinMozambique.

Exports account for 15-20 percent of orders, and Poñe says ABB’s Africa strategy is to use South Africa as a hub for Southern and East Africa. “This means we will manufacture more products in South Africa, with increased engineering and project management done here for the rest of Africa. Our own investments in Southern Africa will probably be driven by the mining and oil and gas industries as much as the power industry.”

But for Carlos Poñe and ABB, massive investment in South Africa’s infrastructure together with top level backing for local industries has another and crucial

ABB FEAturE


World Power Products (Pty) Ltd

World Power Products has often been described as a one stop shop due to the high-tech metal fabrication facilities that are available. Our customized service centre is invaluable to manufacturers without their own facilities with services in:

CNC laser cutting CNC punching CNC bending CNC milling and turning CNC stud welding CNC robot welding CNC plastic injection moulding CNC die casting CNC polyurethane gasket extrusion

Services also include a number of different weldings such as CO2, mig and tig,argon and spot welding, various powder coating lines, a fully equipped tool room and design and development department utilizing the Solidworks software.

PO Box 82200 Southdale 2135130 Side Road, West Turffontein, Johannesburg 2190

Tel: 011 680 5524 | Fax: 011 433 1709Email: [email protected]

Website: www.wpp.co.za

Arthur Carolin, Group General Manager at WPP, talks about a long term commitment between two or more organizations for the purpose of achieving speci� c business goals and objectives. Here is one that has lasted over 25 years.

“World Power Products formed a business relationship in 1986 with ABB then known as ASEA.

Over the years, WPP has witnessed the changes to ASEA BBT and now ABB SA. During this association and throughout dealing with various divisions (BBT-Yelland, BBT-Control Systems, and BBT Power Division), we have also been associated with various divisions from Pretoria West:

Midrand Bedfordview Robertville Alrode Elandsfontein And now Long Meadow.

The association between ABB and World Power Products

We have made many friends in those divisions over the past 25 years, and WPP has played an important role in the contribution to the growth of ABB with various designs and manufacturing improvements and the processing of products supplied by ABB. During this period we have shared many successes and the relationship has been cemented making WPP one of ABB’s preferred suppliers.

World Power Products will continually seek to improve our products and services and the shared objectives and goals to ensure a common direction aligned with each party’s mission”.

component – an accelerating commitment to sustainability.

At November’s COP 17 UN Climate Change Conference in Durban, he added his signature to those of other South African business leaders to the Energy Efficiency Leadership Network pledge confirming commitment to energy efficiency and a sustainable future.

“We are committed to saving energy in our operations as part of our sustainability priorities,” says Poñe. “As a leader in power and automation technology, we have an important role to play in helping our customers to increase their energy efficiency and at the same time lower carbon emissions.”

Sustainability is an integral part of ABB South Africa, its Modderfontein headquarters and

state-of-the-art manufacturing and logistics centre near Johannesburg a showpiece of green construction and environmental friendliness.

Built with the latest environmental concepts and technology, the H-shaped structure lowers energy consumption through the use of natural light. Cost-effective, energy-efficient technologies include a building automation system, power factor correction, drives and high-efficiency motors for the heating, ventilation and cooling systems.

Insulation in the walls, roof and floor cuts cooling costs, while energy is reduced through solar heating, recycling heat from air conditioning motors, and extensive use of ‘grey’ water.

And Longmeadow is more than a model of energy and water efficiency. “From the very beginning we made a decision to create a campus rather than just a place to work. There’s a convenience store for example – very useful if you arrive here very early in the morning, a café shop as well as a canteen, and you can eat outside close to running water. There are Internet cafes for those without access to computers and where we teach employees how to use the Internet. All in all our people have a good environment in which to work, and this combination of the campus together with energy and water efficiency is uncommon.”

Longmeadow was built in 2009, and Poñe estimates that all investments on energy and water efficiency – over R30-R40 million, will have been paid for by 2013 – “an example of how ABB’s technologies can reduce energy consumption.”

And he is encouraged by the vision and commitment of the country’s business leaders. “I have seen South African top managers and big business show real concern and take action on sustainability issues. For many years I was chairman of the Industrial Environmental Forum of Southern Africa (now the Business Council for Sustainable Development: South Africa) a body that included very large companies like Eskom and Sasol, and as far back as nine years ago I could see a huge dedication.

“Starting with pollution and reducing CO2 emissions, this has now widened substantially with social and corporate investment where we see South African managers and companies very much at the forefront.”


ABB FEAturE

WorldPowerProductsstartedbusinessin1963,andhassincebecomealeadinglocalmanufacturerofhighprecisionsheetmetalproducts,aswellasbeingofservicetocustomersfromdevelopmentofdrawingstocompletionofproductsadheringtostringentqualitycontrolprocessesachievingtheISO-9001-2008Certification.

Withalmost50yearsexperienceinthefield,weoperatefromfiveintegratedfactorysites,coveringatotalof30,000squaremetersoffactoryspace,allinthesamearea,andeachwiththelatestmachinery,equipmentandtechnology.

Thecompanyiscommittedtoinnovation,andrealizestheimportancetostayattheforefrontoftheindustrybycontinuallyinvestinginthelatestcapitalintensivemanufacturingtechnologies.

ThelatestacquisitionbeingastateoftheartFiberLasercuttingmachinefromItaly,usingonly20%ofthecurrentenergyconsumptiontothatoftheconventionalCO2Lasers.

DuetodemandsandrequirementsfromtheindustryWorldPowerProductsembarkedontheestablishmentsofPeranoSalesin1975tocaterforinhouseandtheexternaldemandforthemanufactureandsupplyoflocks,hingesandhardwareforthetotheenclosureandpanelmanufacturingindustry.

ContinaStorageSystemswasestablishedin1990withthemainfocusbeingthemanufactureofstoragemanagementsystems,hidensityrackstoragepanelsanddrawers,tooltrolleys,andworkstationbenchesfortheeasystorageandidentificationofspareparts,tools,smallcomponentsetc.

AswellasmanufacturingofthePB300019”rackcabinetstocaterforincreasingtelecommunicationsandinformationtechnologymarkets.

UltimoTechnologywasformedin1993forthemanufactureofthePeranostandardrangeofwallmountedenclosuresandthePB1000seriesahighlyversatilemodularandadaptablerangeoffloorstandingcabinetstosatisfytheincreasingdemandfortheseproducts.

MegaEnclosureswaslaunchedin1998toproducetheMegaseriesofstainlesssteelwallmountedandfloorstandingenclosuresin3cr12,304and316stainlesssteelstoaccommodaterequirementsforcorrosionresistantenclosuresfindingapplicationsincoastal,chemicalandharshenvironmentswheremildsteelandothermaterialsareunsuitable.

WealsohavetheChemopurplatingplanttocaterforvarioustypesofelectroplatingrequirements,inhouseandtotheindustryaswell.

WeareanaccreditedB-BBEEcontributorandWPPisalsoanofficialtrainingproviderundertheMersetawithtrainingSAQAalignedforApprenticeships,LearnershipsandSkillDevelopmentProgrammes.

For more information please contact us on Tel: 011 680 5524 Email: [email protected] www.wpp.co.za

WORLD POWER PRODUCTS PTY (LTD)

MrsE.Bahlig,OwnerandManagingDirectoratWorldPowerProducts,statesthatweatWPPhasandwillalwaysfosterthecultureofbeingthemanufacturerandservicecentreofchoicetotheindustryandbelievethatworkingwithcompaniessuchasABBthekeyphilosophyshouldbearoundapartnershipandthedevelopmentofalongtermrelationship.

But before new employment can be created existing jobs must be safeguarded. “We must guarantee that the jobs that exist, stay, then new investment will create new jobs.”

President Zuma says new investments in South Africa’s roads, railways and ports will create construction jobs and encourage miners and manufacturers to expand their operations.

Among projects announced, a R300 billion investment in a ‘logistics and industrial corridor’ to improve transportation and support businesses between Johannesburg and the port city of Durban, the main artery of South Africa’s economy.

“The massive investment in infrastructure must leave more than just power stations, rail lines, dams and roads. It must industrialize the country, generate skills and boost much-needed job creation,” says Zuma.

Carlos Poñe agrees. “We need more support and procurement for local industries, those that are price and technology competitive. Secondly as a country we must address the skill base issue and see that it is widened.

“We need to create a bigger pool of engineers. We need to train all the engineers we can and bring back to South Africa as many as possible. And this goes right across the spectrum, from engineers that can plan, design, project or site manage.”

While President Zuma – “We can’t only do politics; we must also do the economy” - declares that investors are crucial for job creation, Standard Bank Chief Economist Goolam Ballim says Government needs to recognise that the private sector is the dominant job creator and will participate in the economy when it feels secure.

Carlos Poñe gives a parallel warning. “Without a good and wide skill base in South Africa, we will have a huge challenge to deliver on this project. We should not be looking at price alone. We need to make sure that companies that create employment,


ABB FEAturE

Master Splice & Termination was founded by Johan Visser in 1986 after 30 years’ experience in the electrical industry.

The company is a dynamic and well structured electrical contracting company and supplies Magnetic Proximity Switches and Permanent Magnets to the Mining Industry where they are used on surface and underground for a variety of purposes, including the control and detection of moving bodies. They may be used as limit switches or presence detectors. Because of the robust construction of the switch enclosures, they are positioned in a variety of hostile environments, where they handle the damage and corrosion remarkably well.

We also manufacture and install cable racks for the mining industry. We specialize in winder electrical installations, upgrades and maintenance.

Master Splice & Termination

raise skills levels and bring new technologies are encouraged and supported. These are the businesses that will bring benefit to South Africa in the long run.

“And we must believe in South Africa and Africa. We have enough negativity going around. People need to start being positive about our country and our continent.” END

www.puregas.co.zat: 011 903 9760

[email protected]: 011 903 9766

Ozone FriendlyPropellantslooking after tomorrow, today


S M O K i n G T H ecompetition

British American Tobacco (BAt) South Africa is the

local arm of uK-based British American tobacco (BAt) Group. With over 100 years of history, the firm is South Africa’s largest

manufacturer of cigarettes.By Ian Armitage

J SE-listed British American Tobacco (BAT) South Africa is a smoking superstar. Part of the

British American Tobacco Group of companies, which operates in more than 180 countries worldwide, it is one of the foremost fast-moving consumer goods businesses in the country.

“BAT South Africa holds a unique position within the global tobacco group,” says BAT’s Radu Dobrescu, formerly Head of Operations in Southern Africa.

He told South Africa Magazine that, not only is BAT South Africa, with 24 brands, one of the company’s largest profi t centres, with an enviable domestic market share of 86 percent, but it is also setting an example of successful cultural and structural change – while investing in becoming world-class manufacturing operation.

In that respect, in the years to 2018, some £150 million has been earmarked for upgrades and improvements to BAT South Africa’s operations.

“In South Africa, the business in its present form was created following the global merger of Rothmans International, partly owned by the Rembrandt Group, and London-based British American Tobacco plc,” Dobrescu adds.

In the words of one industry observer, “Without the acquisition of Rothmans International, BAT would have slid off the map of Africa.”

British American Tobacco FEAturE


Locally, BAT South Africa employs more than 2,000 people.

It exports to 31 countries in Africa and the Middle East.

EMPLOYER OF THE YEARIn 2011, BAT South Africa was rated as the ‘Best Employer in South Africa for 2011/12’ by the CRF Institute in its annual Best Employers Certifi cation Index.

The research showed that “BAT South Africa has outstanding HR policies and excellent working conditions”.

The company has built a reputation as a sought-after employer by focusing on employees as people with needs and dreams.

Referencing the company’s work in this area, Clifford van der Venter, BAT South Africa’s HR Director, said in a recent interview:



“There’s an underlying belief that it is great people who make great companies great. You can have the best strategies, the best products and the best brands but at the end of the day it’s the people that make the difference.

“One of the things that enables organisations with our kind of history to remain at the top is a constant renewal, and that has to happen through people. So we have made a deliberate decision to go out and fi nd additional talented people.”

Every year between four to 10 graduates are recruited for a two-year Management Trainee programme.

BAT South Africa makes a similar investment in its Growth Academy, an extensive development programme for existing employees with high potential.

“Over the years we have continued to put maximum effort in growing and nurturing our diverse talent to ensure that we have an excellent leadership pipeline in place. This effort focuses on training and development in the workplace as well as through structured internal and external programmes, aimed at building strong, individually minded leaders who will engage, motivate and inspire our organisation to stand tall in what is undoubtedly a challenging but exciting industry,” said MD, Brian Finch, recently.


British American Tabacco FEAturE

ABOUT BRITISH AMERICAN TABACCO

British American Tobacco, through its subsidiaries, engages in the manufacture, distribution, and sale of tobacco products. The company offers cigars, cigarettes, smokeless snus, roll-your-own, and pipe tobacco products under the Dunhill, Kent, Lucky Strike, Pall Mall, Vogue, Viceroy, Kool, Rothmans, Peter Stuyvesant, Benson & Hedges, and State Express 555 brand names. It has operations in the Asia-Pacifi c, the Americas, eastern and western Europe, Africa, and the Middle East. The company was founded in 1902 and is headquartered in London, UK.

We believe in possibilities—and performance.

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Find out how Alginex® water-based technology can help your LIP cigarette designs.

© 2012 Schweitzer-Mauduit International, Inc. Alginex® is a registered trademark of Schweitzer-Mauduit International, Inc. All rights reserved.

swmintl.com+1 770 569 [email protected]

CONTINUALLY INNOVATINGBAT South Africa is constantly reviewing, renewing, refreshing and innovating its products, the way it does business, the way it operates and, in particular, the way it goes to market.

Several years ago the company moved to a direct sales model to have more direct interaction with its customers.

Another area of huge innovation is working with the South African Police Service and the South African Revenue Service to crack down on the illicit cigarette trade.

The issue forced BAT South Africa to look at its offering in the low-price segment.

“Every year, over R3 billion in tax revenue is lost due to illegal cigarettes,” BAT South Africa said


British American Tabacco FEAturE

over the years

we have continued to

put maximum effort in

growing and nurturing our diverse talent

SWM is an innovation engine. As a premier specialty paper company, we have become a global leader of engineered solutions for the tobacco industry worldwide. One of our solutions is our paper for Lower Ignition Propensity (LIP) cigarettes. Now a rapidly growing requirement in more and more markets, LIP has become the new standard — as it did in the European Union in 2011. Our groundbreaking Alginex® water-based technology enables cigarette manufacturers to meet regulatory requirements without interfering in the smoking experience their consumers seek.

Supporting the Tobacco Industry Globally


We benefi t from our global commercial and industrial footprint, employing close to 3,000 people at 14 different locations on 4 continents, to build a strong bond with multinational and independent customers around the globe. This is true in South Africa, where we pride ourselves on our long-standing business relationships. Together with our customers in this market, we are poised to write a new page by supporting the industry in becoming LIP compliant in 2012.

To learn more about our industry-leading solutions, visit our website at swmintl.com.

Tel: +1 770 569 4271

SWM INTL100 North Point Center EastSuite 600Alpharetta, GA 30022-8246USA

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When only the best packaging will do for intensely competitive cigarette marketers. CTP Gravure

is almost invariably the company of choice - offering these discerning customers exactly the right combination of design innovation, handsome aesthetics and the highest printing and finishing standards.

Your partner in print for products on the move

CTP Gravure (Jhb) a division of CTP LimitedTel: +27 11 345 - 4000 Fax: +27 11 345 - 4400

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in a recent press release. “That’s the equivalent of the cost of more than 44,000 new policemen or 60,000 new homes.”

In response, it introduced a priced-marked pack to inform consumers of the recommended price of its lower-priced brands.

WHERE NExT?In terms of future expansion, the export market, into Africa and the Middle East, remains a key focus for strategic growth and development.

Empowerment is another key focus.

BAT South Africa is currently a Level 6



LIMPOPO TOBACCO PROCESSORS (LTP) is the biggest single supplier of tobacco leaf to British American Tobacco South Africa (BATSA).

LTP is based in Rustenburg in the North West Province of South Africa. The company contracts all flue cured Virginia tobacco farmers in the country. Their combined annual production of 12 000 tons is mostly produced in Mpumalanga and the Limpopo Province, which borders Zimbabwe.

LTP was established in 2004 and replaced the tobacco cooperatives in the north of South Africa. An existing modern factory in Rustenburg was selected by LTP to operate as the green leaf threshing facility for all locally produced tobacco. Buying stations in Nelspruit, Groblersdal, Vaalwater and Rustenburg enable farmers to sell their tobacco in their own growing area.

Suitable tobacco varieties are developed by LTP through dedicated research (financed by BATSA), outstanding agronomy services and best growing practices, increasing the average production yield from 2 500 kg per hectare to 2 800 kg per hectare in a mere five years. Proper management and continuous monitoring also ensure the elimination of non tobacco related material, which secures a safe product of the highest quality.

Tobacco leaf produced in South Africa delivers an outstanding smoking quality and chemical balance, similar to its northern neighbours Zambia and Zimbabwe, on the tip of Southern Africa.

LIMPOPO TOBACCO PROCESSORS

LIMPOPO TOBACCO PROCESSORS is the only green leaf threshing facility in South Africa. Its factory is equipped with all the latest technology and equipment and can process up to 10 tons of green tobacco per hour. Secure, clean warehousing ensures adequate Secure, clean warehousing ensures adequate storage capacity for 3 000 tons green tobacco and 20 000 tons packed tobacco.

PO Box 69Rustenburg 0300South AfricaTel: +27 14 596 5090Fax: +27 86 596 6419Email: [email protected]

The Sun is in our Leaf

our success in the country was not

achieved by accident. We believe that we have retained many of the qualities that

initially helped place us at the forefront of

our industry

Contributor and has various initiatives and targets in place aimed at improving this score on an annual basis.

The fi rm spends more than R30 million annually on corporate social investment projects, mainly in the areas of empowerment, sustainable agriculture, civic life and HIV/AIDS.

BAT South Africa wants to “smoke the competition” by having its customers light up and keep the fl ame burning. In 2004 it celebrated 100 years of business in South Africa. “Our success in the country was not achieved by accident. The company became a leading business from its inception in 1904 and we believe that we have retained many of the qualities that initially helped place us at the forefront of our industry,” the company’s website says.

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



South Africa Magazine profiles Airports Company South Africa (ACSA), which handles about 90 percent of the South Africa’s aviation requirements. By robert Michaels

Up,and upUp,Up,Up,Up, upUp, upUp, upUp,Up,Up, upUp,andandandand up up up up upUp, up up upUp, up

A irports Company South Africa (ACSA) and its subsidiaries engage in the

acquisition, development, provision, maintenance, management, and operation of airports, parts of airports, or other facilities or services that are performed at an airport in South Africa.

ACSA FEAturE


Its services include the development and implementation of individual airport plans comprising land use plans, terminal and runway confi gurations, aircraft fl eet mixes, and passenger traffi c projections.

It also engages in retail and advertising concessions, car parks, property leases, management contracts, and consultancy activities.

It was founded in 1993 and is based in Bedfordview.

It handles about 90 percent of South Africa’s aviation requirements.

away!away!away!away!away!

“ACSA has been in existence since 1993 and has succeeded in transforming fragmented assets into a world-class, profi table state-owned company that is run along commercial lines,” the company told South Africa Magazine.

ACSA has just completed its most ambitious infrastructure capacity development programme ever.

It embarked on an R19 billion programme to generally improve capacity and service offerings at its network of airports.

These improvements, of course, coincided with the hosting of the 2010 FIFA World Cup Finals.

The more signifi cant investments included R2.2 billion


ACSA FEAturE

AcSA has been in existence since 1993 and has succeeded in

transforming fragmented assets into a world-class,

profitable state-owned company that is run along

commercial lines

The Aveng Group is the largest infrastructure development company in South Africa with a proven track record and presence in more

than 30 countries. The Aveng Group has a history spanning more than 100 years and listed on the Johannesburg Stock Exchange (JSE) in 1991. The group’s strong balance sheet position, supported by revenue in excess of R34 billion for the 2010/11 fi nancial year, ranks it as the largest JSE-listed construction group.

Aveng Grinaker-LTA is a highly successful business within the Aveng Group and is focussed primarily on infrastructure, which include the construction and rehabilitation of roads and airport access, runways, taxiways,infrastructure development and rehabilitation.

In road and airport-runway construction and rehabilitation, the business has been involved in various high profi le projects with the Airports Company of South Africa. Work across all major airports in South Africa has consisted of both new and remedial expansion to runways, taxiways and aprons. One other key milestone project was the construction of the new integrated terminal at Cape Town International Airport, which involved the refurbishment of the existing building, run- and taxiway construction at the airport.

LASTING RELATIONSHIPSThe business is founded upon its ability to innovate and be fl exible, as well as establish sustainable relationships with clients. In doing so, the company strives to achieve customer satisfaction by applying world-class expertise, relevant technology and completing projects on time and in budget.

UNRIVALLED HEALTH AND SAFETYSafety is of paramount importance to the Aveng Group and is integral to the way in which business is conducted. Aveng Grinaker-LTA is committed to ensuring that during the execution of it projects,

the health and safety of its employees, clients and the public, as well as the reduction of any environmental impacts, is a priority. Health, safety and environmental issues within the business unit are managed through an integrated ISO 14001 and OHSAS, which has been internationally certifi ed.

BBBEEAveng Grinaker-LTA recognises that transformation is a business and social imperative. Transformation is prioritised within the Aveng Group. Aveng Limited is a value-added level 2 contributor, with a 138% procurement level.

RAND ROADSIn order to provide specialist services required for the surfacing sector, Rand Roads is a specialist division within Aveng Grinaker-LTA. Their product and service offering covers the full value chain of pavements, from bitumen modifi cation and spraying, to asphalt production and paving. Ensuring high standards of quality are always met, the Rand Roads division is accredited with an integrated ISO 14001 and OHSAS 18001 system.

The business’ success lies in its ability to correctly apply its expertise in crafting unique solutions to the challenges posed by each new project.

In recent years, runway and taxiway rehabilitation projects have been successfully completed at major airports in Johannesburg, Cape Town, Durban and other smaller facilities.

Our aim has been to support ACSA in delivering a reliable and quality service to the airline industry and our country.

Tel: +27 11 578 6000 Fax: +27 11 578 6161Email: [email protected]

www.avenggrinaker-lta.co.za



ACSA FEAturE

on a Central Terminal Building at O.R. Tambo International Airport and the new R6.8 billion King Shaka International Airport.

“It is the fi nal building block in a complete redevelopment of the terminal precinct that was commenced more than 10 years ago,” ACSA said.

The smaller airports in the airport network, which are seen by ACSA as an integral part of the overall aviation network, also benefi ted from investment – and many of them played a signifi cant role during the World Cup.

Amongst other things, ACSA completed runway revamp and terminal expansion at Bloemfontein International, a terminal upgrade at East London runway refurbishment at Port Elizabeth as well as terminal upgrades and expansions at Kimberley and Upington.

Networks are too important to ignore and should be managed with the utmost care. How much of your business depends upon a 24/7 and well running network? As a long-standing partner with ACSA, NetSpeed has helped them evolve their network which supports over eight airports. This is testament to NetSpeed’s philosophy – focusing on building long-term customer relationships to deliver network and security solutions that add value and outstanding performance to companies throughout South Africa.

Let NetSpeed Technologies and Entuity Eye of the Storm network management help your IT organisation to:

support the latest IT technologies provide key analytics that illustrate

how well the network is supporting the business and

furnish operational effi ciencies to proactively manage applications, services and IT infrastructure.

A key business challenge today that affects every business is ensuring that continuous network availability becomes a reality. NetSpeed provides the expertise and foundation for successful network performance that meets the unique demands of each client. Extending beyond traditional IT expertise, NetSpeed delivers to its clients’ quantifi able benefi ts that show where IT adds value to the company’s bottom-line. Real savings come with the accurate knowledge of how the network is performing and where to make adjustments. From better bandwidth management and capacity planning; to new technologies such as cloud computing, virtualisation and wireless; NetSpeed works to drive down the cost of IT ownership and provide reliable network performance that ensures a company’s success.

NetSpeed Technologies has recently been recognized for its outstanding efforts in South Africa and has been awarded Entuity Platinum Partner status – an exclusive distributor of the Eye of the Storm Network Management Solution.

For more information or to receive our ACSA customer story, please contact NetSpeed at 011 367 0686, [email protected], or visit www.netspeedportal.co.za.

NetSpeed Technologies

Make sure your network can deliver 24/7 reliable application uptime, because your business and employees depend on it—-networks today are too important to neglect and they should be managed with the utmost care. Get the most from your network—-NetSpeed partners with enterprises, including ACSA, across South Africa to help them proactively take the work out of network management. Effortless management and exceptional performance is strictly by design using Entuity network management, an all in one solution for:

future-proof technology operational efficiency a sharp business focus—business reports for non-IT audiences scalability to meet your needs today and tomorrow and support for new technologies—virtualisation, wireless, cloud computing.

NetSpeed Technologies has recently been recognized for its outstanding efforts in South Africa and has been awarded Entuity Platinum Partner status and is now an exclusive distributor of the Entuity Eye of the Storm Network Management Solution. Contact us today for a copy of our ACSA Customer Story or sign up for a complimentary network assessment at: [email protected].

ELIMINATE NETWORK BOTTLENECKS FOREVER AND UNCORK YOUR EMPLOYEES’ PRODUCTIVITY.

Building 1, Prism Office Park Ruby Close, Fourways Gauteng, South Africa Tel. 011 367 0686

NetSpeed is an authorised Entuity Platinum Partner. Eye of the Storm and Entuity are registered trademarks of Entuity Ltd. www.entuity.com

The investments appear to have paid off and passenger numbers continue to rise.

In 2011 ACSA recorded its highest number of passengers processed to date – breaking the record set in 2007.

“With just under 8.5 million passengers processed in 2011 it can be hailed the year of regained growth,” ACSA said in a statement.

Deidre Davids, Communications Manager, Airports Company South Africa: Cape Town International Airpor, said, “In essence this means that while passenger numbers had started to slowly but steadily grow we had not yet recorded as much growth as in 2007. Now we have fi nally surpassed that and if the trend continues we are on track to regain the growth of the past four years.”

ACSA has also been named in the CRF Institute’s Best Employer list.


ACSA FEAturE

ABOUT ACSA

Airports Company South Africa Limited and its subsidiaries engage in the acquisition, development, provision, maintenance, management, and operation of airports, parts of airports, or other facilities or services that are performed at an airport in South Africa. Its services include the development and implementation of individual airport plans comprising land use plans, terminal and runway confi gurations, aircraft fl eet mixes, and passenger traffi c projections.

The company also engages in retail and advertising concessions, car parks, property leases, management contracts, and consultancy activities. In addition, it involves in the hotel operations, as well as insurance activities. Airports Company South Africa Limited was founded in 1993 and is based in Bedfordview.

Please visit www.g4s.comHead Office (012) 431-3700

� Passenger services, screening & profiling � Aircraft searching & airport security � Aviation support services � Baggage tracking & reconciliation � Baggage management, screening & deliveries � Cargo monitoring, escorting � Cargo screening & security � Central search screening � Off-site control services � Manned Security

SecuringYour

World

PROVIDING GLOBAL AVIATION SOLUTIONS THAT ENSURE THE SAFE TRANSPORTATION OF AIR TRAVELLERS AND CARGO WORLDWIDE

Our mandate is to persistently advance the safety of aviation through the application of secure integrated solutions to protect our customers and the travelling public against security vulnerability.

G4S security personnel at airports receive high level training to satisfy the constantly changing aviation legislation whilst we striveto maintain an evolving range of new security technology.

G4S, the leading global provider of integrated secure solutions, is well established as a major partner in the aviation industry – we

Our Services Include: � Crew transportation & protection � Firearm handling & deliveries � Internal & external training & audit � Line scan operations � Lost property management � Risk evaluation � Development of security programs � System design & installations � X-Ray Operators � Information desk

provide services at 61 airports and 81 airlines in 49 countries around the world. Our emphasis is always on providing solutions which improve security but do not inhibit the flow of a growing number of airline passengers.

G4S aviation works closely with all airport authorities, government departments and customers to ensure security advancement in line with individual needs and the changing global aviation environment. We are proud to be associated with ACSA.

“The leadership vision for ACSA is to ensure that at every level of business there is a leader in place to make the right decisions, lead and inspire their teams to achieve results. The premise is that noone can lead alone and good leadership is when you’ve identifi ed the right team and, together, you move from one point to another. So, it’s all about teamwork. At the same time, it is an opportunity to address past imbalances in particular equipping and promotion of previously disadvantaged


ACSA FEAturE

individuals especially women,” says Monhla Hlahla, Managing Director.

ACSA’s mission is to create, develop and manage world-class airports to the benefi t of all stakeholders. This is achieved within the context of the company’s vision: to be a leading, world-class

airports business. “We are well on our way to

realising this vision, having won a number of prestigious local and international awards recognising not only our operational excellence, but also its customer service and the talent of its leadership,” ACSA said.

the leadership vision for AcSA is to ensure that at every level of

business there is a leader in place to make the right

decisions, lead and inspire their teams to achieve results

Authorised financial services and registered credit provider (NCRCP15)The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). SBSA 111116-03/12

Moving Forward is a trademark of The Standard Bank of South Africa Limited

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‘And’ is how we make the remarkable happen for you.Because without you, it doesn’t matter what we offer.

www.standardbank.co.za/cib


ACSA FEAturE

In a country that is troubled by chronic unemployment, ACSA is a big contributor to job creation.

As recognised by global consulting fi rm Mott-MacDonald, the investment by ACSA in infrastructure development has been appropriate, leading to signifi cant socio-economic benefi ts. It is estimated that the three major international airports sustain about 300,000 jobs (direct and indirect) and that planned future developments, as a result of passenger and cargo growth, will result in the creation of some 150,000 new jobs over the next 10 years, provided the envisaged infrastructure development plans are realised.

ACSA has performed exceptionally well. Last year, the OR Tambo International Airport was named the best airport in Africa, and was also in the top three most-improved airports worldwide at the World Airport Awards for 2010/11 held in Denmark.

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

Protea Coin Group (Technical and Physical Security) (Pty) Ltd is a security and surveillance services specialist.

We were incorporated in 1999 and are based in Pretoria, South Africa.

Our mission is to ensure that Protea Coin Group will continue to improve and sustain its existing client base and therefore become the security provider of choice for the South African security services market.

Our vision is to be the service provider of choice, be known and respected for our ability to always deliver exceptional customer value through service excellence. We become partners to our customers, creating a superior offering and delivering integrated risk solutions, supported by a culture of enthusiastically devoted personnel.

Protea Coin Group (Technical and Physical Security) (Pty) Ltd. operates as a subsidiary of Mvelaserve Ltd.

For more information, visit the company website www.coin.co.za

Protea Coin Group


Alexander Forbes acquisition builds Marsh platform in Africa

Brian Blake, vice chairman of Marsh Africa, tells South

Africa Magazine how the firm’s acquisition of Alexander

Forbes’ brokerage business has expanded its African presence

and will help it realise the “tremendous potential of the

African continent”. By Ian Armitage

i n January insurance broker Marsh greatly expanded its presence in Africa by completing the

acquisition of Alexander Forbes Risk Services.

The deal, which was announced in August, includes the acquisition of Alexander Forbes’ South African brokerage operations, its risk services arm and its insurance brokerage operations in Botswana and Namibia.

Marsh said it also would acquire Alexander Forbes’ local interests in Malawi, Mozambique, Nigeria, Uganda and Zambia, during the fi rst quarter 2012, subject to compliance and regulatory process.

“Combining these businesses considerably enhances our position in the African market,” says Brian Blake, vice chairman of Marsh Africa with specifi c responsibility for developing African business outside South Africa.

“Marsh recognises the tremendous potential of the African continent as a major market for insurance and risk management services. Alexander Forbes is a highly regarded fi rm, which greatly strengthens our immediate presence. We now have a powerful platform to deliver value to the fast-developing sub-Saharan region.”

“While we were satisfi ed with what we had achieved in the South African market to date, it was clear that if we were going

Marsh FEAturE


to build a leading business in Africa — as Marsh has in other geographies — we would require a quantum leap. For Marsh, Alexander Forbes was a perfect cultural fi t: it enjoyed a well respected brand, a strong business across segments and territories and a very solid regional network.”

The move is “positive news for clients, colleagues and the risk and insurance industry across Africa,” Blake, the former CEO of Marsh South Africa, adds, explaining that Marsh Africa will

provide a “broader offering” to clients coupled with strong bench strength of professional capability.

“Clients benefi t from the huge level of expertise brought together in the combined business. Additionally, our global services

and solutions will give a wider range of solutions to business across the region.

“By aligning the local strengths of Alexander Forbes with Marsh’s global resources, we are bringing the world’s best to Africa,” Blake says.

He says Africa was an international market where Marsh lacked the correct degree of presence.

Marsh sees itself as a ‘key player’ on the continent with demand increasing for specialist risk management and brokerage services in sectors such as mining, telecommunications, fi nancial services and energy, he explains.


Marsh FEAturE

clients benefit

from the huge level

of expertise brought together

in the combined business


Marsh FEAturE

“Our core business is insurance broking and risk advisory services,” Blake says. “We also see more opportunities for Marsh’s private equity mergers and acquisition practice, focusing on risk, insurance, lender and vendor due diligence, especially at a time when Africa is experiencing signifi cant focus as an investment destination.”

Marsh is the world’s leading risk and insurance services fi rm; it provides analysis, advice and transactional capabilities to clients in over 100 countries.

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The company returned to South Africa in 1999 when Marsh South Africa was established through a joint venture between Marsh Inc. and First Bowring Insurance Brokers, now First Link Insurance Brokers.

It hasn’t looked back.“With the business environment constantly evolving in South Africa, we went from strength to strength,” says Blake.

“We’ve had great success in South Africa,” says Blake. “And with the Alexander Forbes acquisition we are effectively positioning ourselves as a leading insurance force in the marketplace.”

And the opportunities are plenty. “Over recent years we have seen significant


Marsh FEAturE

opportunity coming out of the sub-Saharan region and Africa generally,” says Blake. “There has been significant Chinese investment, while the big mining houses have also been expanding. Africa is certainly a focal point for investors. And, of course, Africa’s consumer market presents an exciting growth opportunity.

“Africa lacks support infrastructure, however, which creates opportunities too – we have seen a lot of investment in this area.

“Marsh can support clients as they seek to capitalise on this.”

Blake says Marsh in Africa is a business transformed, excited by the future.

“Over the last five to ten years we’ve seen a level of innovation we haven’t seen previously in terms of product development and service delivery. Further, the business model has changed from one that was based on broking or transferring risk for our clients through a traditional market place to one that is more rounded, where we look at issues of risk and risk mitigation before we look at issues of risk transfer,” he explains. “We are today providing a more robust service, rather than a pure intermediary service to clients.

“Innovation will continue and we are seeing developments more specific to our region, which also open up

exciting opportunities,” says Blake. “Micro insurance is one such example. Africa has a large population – 160 million in Nigeria, for example – with a need for risk transfer, at a relatively basic level. Micro insurance can provide that.” END

With the business

environment constantly evolving in

South Africa, we went from

strength to strength

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50 years “ H A v E t o B E

Black-led Afena Capital is an outstanding example of savvy

asset management. And founder and cEo tebogo naledi tells South

Africa Magazine that he wants to be judged on the merits of

Afena’s philosophy, structure and track record. “the transformation

element becomes something that’s important, but it’s kind of

an overlay. At the end of the day all we are is an entrepreneurial business that is majority Black

owned and managed.” By colin chinery

i n what seems a lightning six years, Cape Town-based specialist equity investors Afena Capital

has soared from standing start to a R20 billion management portfolio with over 30 institutional clients and a Top 10 market growth rate.

“In terms of asset growth we have done well, even relative to our peer group,” says CEO Tebogo Naledi.

An owner-managed business operated by founders Tebogo Naledi and three partners, Afena focuses on the management of retirement fund assets and personal investment, predominantly in South African equities.

And while the fi rm is proud of its Level Two Contributor to Black Economic Empowerment rating, its strategy is objectively results-focussed.

“Our philosophy is very much around valuation-based investing in shares in which we have done detailed research, shares we believe to be under-valued looking at their profi tability and performance through the cycle.

“We invest across the market, there’s no size bias and we value companies on their sustainable earnings and through the cycle operating performance.”

While the last two years have been challenging for stock pickers, Afena Capital’s investment returns generated for clients over the long-term have been competitive, says Naledi.

Afena Capital FEAturE


Black-led Afena Capital is an outstanding example of savvy

asset management. And founder and cEo tebogo naledi tells South

Africa Magazine that he wants to be judged on the merits of

Afena’s philosophy, structure and track record. “the transformation

element becomes something that’s important, but it’s kind of

an overlay. At the end of the day all we are is an entrepreneurial business that is majority Black

owned and managed.” By colin chinery


“And we take great pride in the fact that we have not lost a single client since inception – with the small exception of a R50 million incubator fund and this didn’t end for negative reasons. Our job is to look after the true interests of investors over the long-term.”

Like its growth record, Afena’s origins are appealing, hatched by Tebogo Naledi in discussions with four colleagues at Investec where he was a fast-rising executive. “Our basic proposition was to build a quality fund management firm. We wanted it to deliver quality for clients and to be run professionally with integrity. We wanted it to have the best talent to be found in South Africa and whose demographics reflect the society we live in. In South Africa we have quite a painful history that has led to an economy and corporate landscape that is not demographically representative of the country.”

Three of the four are now Afena Capital executives; Khulekani Dlamini, Head of Research, Khaya Gobodo, Portfolio Manager, and Andrew Joannou, Chief Investment Officer , part of a team that has grown to 16. “Foremost among the factors that have been consistent about Afena Capital is our really talented and passionate team of people.”

Graduating from Cape Town University with a Bachelor of Business Science honours degree in Finance and Economics, Botswana-born Naledi, now 38, was uncertain of a career destination. He took a job in the corporate banking division of Standard Bank. Thank you but no


SBG Securities is a stock broking firm serving institutional investors, and is wholly owned by the Standard Bank Group. We offer Equities Sales, Sales Trading, and Equities Research. Our alignment with Standard Bank’s Equity Derivatives and Capital Markets businesses enables us to deliver an integrated offering to both domestic and international clients. Our research is focused particularly on economies, sectors and companies in sub-Saharan Africa and we have research teams based in South Africa, Turkey, Kenya, Nigeria, and the UK. Our equities platform consists of a dedicated team of 90 Equity Professionals based in Johannesburg, London, Lagos, Nairobi, Istanbul and New York. We support our client, Afena Capital, in their drive to exemplify African excellence.

SBG Securitiesthank you. “It was nice to experience what working life was all about, yet I wasn’t really stimulated. But I had been intrigued by my exposure to asset management.”

He moved to asset managers Futuregrowth, rising to Business Development Manager - “it had a socially responsible investment focus that I found appealing” - and three years later moved to Investec. By the time he left there to start Afena he had become MD Africa Business and part of the Investec global executive. “It had been a great move. But I had been bitten by this entrepreneurial bug. I thought, ‘If guys like us aren’t going to do it, then who will?’”

With relatively few Blacks in the senior

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reaches of the asset management sector, it was and remains a good question. “Overall I think it’s a difficult industry in which to start up, establish and grow, and there are many examples of attempts that have not worked out - Black or White owned. If you look at the proportion of assets managed by Black-owned firms it’s a very small percentage - single digits. It’s still a major challenge. We need to see the emergence of more quality Black-owned firms, people like ourselves, and it involves a lot of training, mentoring, and providing a conducive environment. And as an industry we haven’t done enough of that.”

Naledi enlarges on the theme. “If you look at corporate South Africa there’s no doubt that we need to transform. One way of approaching that transformation is to say you will allocate a proportion of your assets. Some firms have taken that approach, allocating say two per cent of their assets to Black managers where the criteria is around how Black is their shareholding, how Black is their team, and things like that.

“We believe that transformation is essential. It’s critical and we are passionate about it. But the way you approach it is very important. An analogy I like to give is like the old Homeland kind of approach – find the lousiest parts of the country and say the Black people must live there. Well that’s not how you transform the industry. The big thing is to identify good quality Black-owned, Black-operated firms. We are not by the way subscribing to 100 percent Black ownership; our approach to transformation is that we want to represent the demographics of this country.


ABOUT AFENA CAPITAL

Athena Capital offers financial advisory services. The firm provides private equity, mezzanine debt, and trade finance transaction advisory services. Additionally, it offers debt and equity finance raising services. The firm caters to the residential property sector. Athena Capital was founded in 2003 and is based in Cape Town. “We set out to build a sustainable legacy in the form of a quality investment management firm that grows client wealth and is truly representative of South Africa,” the company says. “This was the driving force behind the business when it started. We continue to be motivated by this vision. We believe that we are playing a valuable role in generating client wealth by providing a quality alternative in a market dominated by traditional investment management firms.”

regulation is one of the areas where there has been an increase, particularly for start-up businesses, and this has made it much more challenging. But for me skills are right at the top of what is needed to stimulate the economy, savings and growth.

“The legacy of apartheid in terms of the damage done to the skills base is immense. And we are talking across a range from simple basic education to tertiary level, technical and artisan skills, to professional and entrepreneurial skills. There are great technicians and operators here, great entrepreneurs. But if you look at the demographics it is no way reflecting the country. There so many sections locked out of these opportunities.

“And this is where potential exists for this country to truly become great. So in my view, without a doubt, focussing on education and skills – and involving not just academia or government but also industry - is vital.

“Some argue that an injection of capital into the economy will stimulate growth. But a study I have just read shows that while it may, the beneficiaries will remain the current status quo. At the end of the day, if you want to spread the benefits as well, you need to ensure that you upskill people so they can participate in that growth.

“A State of Emergency should be declared around our skills situation. Skills, skills, skills; that for me is top priority.”

As a picker of long haul winners, Afena Capital is not into short term forecasting, but Naledi judges his market to be


“And we want to be judged on the merits of our philosophy, structure and track record. There should be no cutting a slice or pigeon-holing people in to that particular space. The transformation element becomes something that’s important, but it’s kind of an overlay. At the end of the day all we are is an entrepreneurial business that is majority Black owned and managed.”

While skill shortages continue to be a major worry for South Africa’s business sector, over-regulation and red tape emerge as the biggest constraint to business expansion according to the latest quarterly survey from Grant Thornton. Naledi is unpersuaded. “I agree

We take great pride in the fact that we have not lost a single client

since inception


“probably fair to maybe slightly over-valued. We are not concerned about major risk in terms of market collapse looking forward, but neither are we excited about a massive upside coming through.

“Certain pockets of the resources space are looking reasonably attractive, particularly in things like precious metals and maybe oil. Financials too are looking relatively attractive in certain areas. Industrials as a sector are one area that’s had a long run and here we do find a lot more of the over-valued companies. Nothing too exciting out there.”

Naledi says Afena sees itself as being “very much part of the new way of investing that will emerge in the future. We are a team of people who have been very disciplined, very dedicated, and who demographically, reflect our society. Our job is to look after the true interests of investors over the long term, and that does require patience, focus and dedication, qualities that as a firm we very strongly subscribe to.”

And six years after its launch, Afena is looking to expand. “We do have medium to long term ambitions beyond South Africa, and there are many opportunities to add value and many opportunities for us to help in the development of skills and capital markets in the rest of the Continent.

“I’ve been fortunate in being able to work in several countries outside South Africa, and Afena Capital can be a very very exciting part of the development of Africa. The next 50 years have to be Africa’s.” END


The Maitland/ Afena partnership is a mutual success story. We offered Afena our complete, scalable fund administration platform from its inception. This afforded the fledgling boutique the same platform integrity their prospective clients would have expected of some of the world’s largest fund managers. Afena was guided by our administration model and has seamlessly and successfully grown its assets on our platform.

We provide front, middle and back office services giving them the comfort and freedom to focus on what they clearly do so well, which is manage funds. We believe in them and they believe in us. A true partnership.

For more information on Maitland and our funds offering, visit www.maitlandgroup.com

Maitland



ADT’s complete range of security solutions, from

electronic article surveillance (EAS) to access control, fire

detection and suppression systems and remote monitoring,

is all backed by its well-established guarding, monitoring

and armed response services. By Ian Armitage

Safe and

W hat means most to you in the world? You’d do anything to keep it safe, right?

With crime a constant threat, it is only natural to worry.

Fortunately ADT, South Africa’s leading fi re and Security Company, has a solution – or rather several.

ADT is South Africa’s largest private security company and offers both the sophistication of a major international corporation and the home-grown knowledge of a local organisation.

Its position wasn’t built overnight. For many years now ADT has been protecting the homes and businesses of South Africans.

secure

“Since ADT entered the South African market at the turn of the millennium by merging and welding together what were some of South Africa’s leading local security companies then, we’ve grown dramatically,” says Martin Ochien’g, Marketing and Strategy Director at ADT South Africa. “We are the market leader in this space across many disciplines including the monitoring and response business in the residential and small business sectors, and are an increasingly strong player in the commercial and retail security space as well. This leadership isn’t just about penetration and market share, but also about broad services, customer care, and value addition for our customers. Our response times are industry leading, as are our training standards for our armed response offi cers. These combined with a desire to always improve on the customer service side, encourages us to keep re-inventing ourselves to ensure that we stay relevant with the ever changing clients needs.”

According to Ochien’g, ADT’s security systems “are in every major city across SA, and play a crucial part in people’s lives when it comes to security, monitoring, response, medical emergencies and fi re alerts”.

ADT provides fi re and security services to business and residential customers around the country, he says.

ADT FEAturE


our response times are industry leading,

as are our training

standards for our armed

response officers

Martin ochien’g, Marketing

and Strategy Director, ADt

“ADT is the largest private security company in South Africa and a specialist in this fi eld,” he says. “We are very strong in the residential market, where home Security systems are a valued part of home protection and are also driving security and loss prevention solutions in the retail and commercial sectors where businesses value their assets.

“In the retail sector for example, we offer in-store protection for our clients and their customers to enhance not only the performance of the retailers but also to secure the shopping fl oors and uplift the shop profi le for a better shopping experience.”

ADT’s strength is certainly in the residential market. However, in recent years it has been expanding, especially on the commercial side.

A couple of years ago, ADT South Africa launched into the commercial sector with an intense drive to bring internationally tried-and-tested, holistic, security solutions to South African businesses.

“Almost half a million South African homes and businesses trust ADT to protect them and their assets. This growth and strength has been paralleled by accelerating growth in the business and commercial sectors,” says Ochien’g. “While commercial security solutions have been the major focus and area of success for ADT worldwide, for ADT South Africa the focus has been on residential

security, and the opportunity to use the expertise gained from that sector to help drive growth in the commercial and retail sectors can’t be over-emphasised.

“ADT today provides commercial security solutions to thousands of South African businesses in all major urban centres,” he adds. “We offer a comprehensive range of dedicated and integrated security solutions combining manned and electronic platforms with guards, access control systems, burglar alarms, installations, monitoring/armed response and Video services including remote video surveillance, as well as bespoke integrated systems and fi re solutions for specifi c businesses. Our solution range in the retail sector is comprehensive and we have been investing a lot in driving solutions that not only improve store performance but enhance shopper experience as well.”

Not only does ADT have the drive, manpower and technological intelligence to offer these solutions, it also has a comprehensive array of products and service offerings to suit the commercial markets in South Africa, he continues.

“ADT’s complete range of security solutions, from electronic article surveillance (EAS) to access control, fi re detection and suppression systems and remote monitoring,


ADT FEAturE

We continue to offer solutions in the mining and manufacturing

segments with fire systems, access

control, video solutions and retail store performance

solutions


ADT FEAturE

RDC is a proud supplier of locally manufactured security communication products to ADT nationally.

The company has designed and manufactured communication equipment for over 32 years and has partnered with ADT since its inception in 2001. RDC’s long range VHF transmitters relay critical security data from alarm installations, via a repeater network, to base stations located at ADT’s control rooms. RDC is proud to be a supplier to South Africa’s market leader, ADT.

RDC

is all backed by its well-established guarding, monitoring and armed response services. Our approach is to use our local experience, coupled with global knowledge, to put into practice locally what has worked globally especially in the commercial sector while being fl exible to offer local solutions for SA specifi c challenges.

“We are continuously focusing on vertical markets that we have strengths in and coupling that with global experience to bring to SA some of the world’s best security, fi re and loss prevention solutions. One example of these verticals is Mining and manufacturing.

We are continuously focusing on vertical markets

that we have strengths in and coupling that with

global experience to bring to SA some of the world’s best security, fire and loss

prevention solutions

We also have solutions that are very relevant in Finance and banking, and property development. “The future is bright for us. We intend to execute our expansion to continue to drive a safer environment for all in SA.”

That growth will not only come from the SA market but also from the African continent, he says.

“That is something we have done for quite some time already,” Ochien’g explains. “We continue to offer solutions in the mining and manufacturing segments with fi re systems, access control, video solutions and retail store performance solutions in the Sub Saharan Region and this remains a key driver of our growth plans.”

Having an extensive range of products and services all available in one service provider is key. “ADT is the leading player in the fi re and security industry and we come with the added advantage of being able to offer a multiplicity of varied services under one roof.”

Away from business, Ochien’g was keen to mention ADT’s CSR record, and specifically a programme that ADT runs in SA called ADT Teach. “ADT Teach is an innovative computer skills and education programme for high school learners. Through the programme, high school learners from under-privileged schools in the Western Cape and Gauteng regions gain critical computer skills, helping them prepare for more advanced training and education, and entry into the workforce in this critical resource area.”

Trainers visit the schools in ADT Teach mobile computer labs, which are equipped with laptops, a generator and routers.

Since its launch, the programme has benefi ted more than 600 learners.

Tolearnmorevisitwww.adt.co.za. END


Top


cropso F t H E

South Africa Magazine talks to sugarcane and

game farmer charl Senekal.

By Ian Armitage

n orthern KwaZulu-Natal farmer Charl Senekal is one of the most inspirational and truly fascinating people I’ve ever had the pleasure

of interviewing. From humble beginnings as a small farmer,

Senekal, 63, has become one of South Africa’s agriculture industry’s leading personalities.

He is a big man with a big heart and is on congenial terms with high-level members of the ANC (he laughed when I asked him how he came to be so politically connected).

His farm in Mkuze is the largest private sugarcane farm in the world.

“I fi rst got to know senior government offi cials when we built a pipeline carrying water from the Pongolapoort dam to my farms and surrounding communities,” he says.

Senekal says he met then-deputy president Jacob Zuma in 2000 when he contacted him about building the water pipeline, and received the go-ahead to access water from the country’s third largest irrigation dam.

The rest, they say, is history.“I came from a poor background. My father

was a teacher in Pongola,” Senekal says. “When I was 21 I started working at a sugar

mill, and spent 13 years learning as much as I could about sugar, while putting money aside.”

He and his wife Elize eventually saved enough money to lease their fi rst sugarcane farm.

“My father told me that we Senekals worked for others and not ourselves,” Senekal says. “He thought I was mad. We leased a farm that was neglected and lacked tools. Everyone wrote us off and gave us a slim chance of surviving.”

But he proved the critics wrong. Senekal then spent the next 21 years buying, developing and selling sugar cane farms in the Pongola area.

“I became the biggest sugarcane farmer in South Africa,” he says.

In 1999, Senekal, with his wife Elise and children Dreyer, Charl, Andre and Mari, moved to Mkuze and bought Mkuze Estates.

Senekal has impressed all and sundry with his boundless philanthropy, most noticeably, as he

Senekal Sugar FEAturE


crops



mentioned earlier, when he built a pipeline to provide water to over a quarter of a million Ubombo and Mkuze residents.

“When we moved here, buying the land from Anglo American, we noticed the poverty of the area around us and we became determined to put Mkuze on the map,” says Senekal. “The Jozini Dam was just a few kilometres away, yet no water was being pumped for local use. Instead, the surrounding communities had to contend with a trickle of dirty piped water, and often in the winter months had no water at all. Me and my eldest son Dreyer decided to do our own feasibility studies and we discovered that for around R20 million we could lay glass fibre piping, which would not only provide water for irrigating their own sugarcane fields, but also for their private game reserve and the 200,000 strong local community.”

JR Tyres was established in 1995 as a private tyre company by founder Director, Jaap Dittrich. With over 10 years of experience in the tyre business at that stage, he began to build his association with Charl Senekal. This relationship was continued when Charl Senekal developed Senekal Suiker.

JR Tyres believes in personal interaction with their clients and have built long lasting business relationships. These relationships are based on honesty, integrity, respect and often develop into friendships. JR Tyres pride themselves on high moral values, first class service to their clients, product quality and competitive pricing. This has proven to be a successful business philosophy that over the years contributed to the success of Senekal Suiker and also allowed JR Tyres to develop into a productive, profitable and sustainable business. In 1998 JR Tyres became a Conti-Partner of the International Continental Tyres Group.

JR Tyres value their clients and aims to meet the individual needs of their clients. In order to minimize time delays and improve efficiencies, JR Tyres supplied Senekal Suiker with trained staff, equipment, tools, consignment tyres and rims at their workshops.

JR Tyres, as a proud supplier of Senekal Suiker, also conducts regular inspections and surveys on their fleet of trucks, trailers, tractors and other equipment. This has proven to be a valuable tool, in terms of planning and pro-active management of the fleet, resulting in the optimization of both the operational as well as financial aspects of the fleet.

JR Tyres expanded the business over the past 17 years, not only in Northern Kwa –Zulu Natal but also across the border into Swaziland. This expansion is based on the same relationship and business model applied to Senekal Suiker. JR Tyres are therefore very confident that this recipe for success can be duplicated in other areas of Southern Africa.

May the Senekal Suiker and JR Tyres partnership grow from strength to strength and lead to more successful partnerships for both entities.

JR TYRES

I became the biggest sugarcane farmer in South Africa

The Senekal’s, he adds, had a plan, but they could not get permission to pump from the dam. This is where Zuma entered the story.

“We sat watching Zuma’s 1999 New Year’s Eve address on television, and I turned to the family and said: “That is the man I need to speak to.” I then contacted the deputy president’s office and eventually got to speak to him. He was very impressed and said he wanted to come down and see us. A few days after we got permission to draw the water.”

Today the water is some of the cleanest in SA and goes to around 350,000 people, Senekal says.

“We are very positive about life and are committed to making South Africa work for all its people,” he adds. “The country is working for me, no doubt. But I want it to work for all of its 50 million people. I feel very strongly about that.”

Senekal’s is certainly a success story and he continues to invest thousands of rands per year to help uplift poor communities and small farmers.

“We do a lot for the local community and for emerging farmers,” says Senekal. “I’m currently helping almost 3,000 black farmers who are my neighbours to farm better and I run a scheme on my farm called ‘Our Opportunity’ where we took 300 ha of


We do a lot for the local community and for emerging farmers


sugarcane fields, worth R15 million, and gave it to our workers. I did that for all the farm workers that had been here five years or more. That is huge.

“I see us as an example of what can be done between a farm owner and his workers.”

Senekal has 1,000 full-time workers. “I’m also currently building 1800 houses in Mkuze and the

surrounding areas for local people,” he adds. “We’ve invested a lot in the town, but still more needs to be done. We want the town to flourish and be prosperous for all.”

His management team consists of two general managers, a financial manager and six division managers.

His sons, Dreyer, Andre and Charl jnr, and daughter Mari are all involved in some form within the business and Senekal’s wife Elize is also involved.

“We have around 20,000 ha, consisting of the sugar cane plantations as well as a game reserve,” Senekal says. “This situation will soon change dramatically and I aim to increase farming operations in the coming years. I am expanding my operation by another 2000 ha, which will give us 5000 ha under



We are very positive

about life and are

committed to making

South Africa work for all its people

irrigation. It means more people will be employed and more people will be given access to better housing, medical care, etc. We are uplifting the community by increasing our footprint in Zulu land.”

He has great confidence in the sugar industry and its future.

“I do. I have great confidence,” Senekal says. “I have confidence in the sugar industry because it is one of the best organised and managed agricultural industries. The industry enjoys support from government and is an R11 billion per year industry. Direct employment to the industry, I think, must be well over 120, 000 but millions benefit directly and indirectly from sugar. To be a sugar farmer in South Africa is something to be proud of.”

Mr Senekal was chosen as South Africa’s National Farmer of the year in 2003 and is also chairperson of ProAgri - a forum representing the largest commercial farmers in SA. END

B P is the second biggest integrated energy company in the world and its history in South Africa reaches

back over 100 years, where it has consistently been a leader in terms of direct investment and wealth creation.

BP Southern Africa (BPSA) has its head offi ce in Cape Town and is the third largest of seven oil companies operating in the country.

“BP Southern Africa engages in refi ning and marketing of fuels and lubricants,” an industry expert told South Africa Magazine.

BP is committed to South Africa. A global merger with Castrol in 2000 has made an enormous impact on BP’s lubricants business in Africa and BP is today a world leader in the

development of cleaner fuels and renewable energy.

It is also pioneering technologies for the hydrocarbons in the production of cleaner power whilst employing the latest technology to minimise carbon emissions in hydrocarbon exploration and production.

A R40 million fuel technology centre in Johannesburg is developing cleaner fuels for the South African market.

“The centre is part of our long-term investment strategy into the country, which we view as a key growth market,” BP says. “We want to develop world class fuels value chains with an integrated offer to our customers utilising our market positions.

“The centre is one of only four in the world belonging to BP,” it adds. “We want South African consumers to have access to BP’s best available fuel technology, and the centre will ensure that


right pathB A c K o n t H E

Global fuel giant BP is committed

to SA and adding value to

consumers’ lives, while developing

cleaner fuels.By Ian Armitage

the fuels developed for the local market remain unparalleled in quality and performance.”

BP has spent more than R500 million on growing its forecourt infrastructure, expanding fuel delivery capacity and optimising refi ning in the country.

The centre operates under a similar model to those in Germany and the US, focusing on quality assurance, technical service and marketing support for the local market, and plays an important role in the next phase of SA’s cleaner fuels agenda.

South Africa is very important to the BP group and is one of BP’s best performing markets.

ASSET SALEIn 2010 and 2011 BP upped its attempts to position itself for the future, confi rming a $296 million deal through which it would sell its fuels marketing businesses in Namibia, Botswana and Zambia to Puma Energy, as well as its 50 percent interest in each of BP Malawi and Tanzania.

“Puma Energy has agreed to pay BP a total of $296 million in cash, subject to certain post-completion price adjustments,” a BP statement said.

“The sales do not include BP’s refi ning and marketing businesses in Mozambique or South Africa,” the statement added.

Puma Energy has operations in over 25 countries, including several in sub-Saharan Africa.

The decision to divest these businesses followed a strategic review of BP’s southern African refi ning and marketing businesses, BP said.

BP also announced its intention to sell its liquefi ed petroleum gas and tank-fi lling operations in various countries including South Africa.

BP said it intended to sell its LPG bottles and tank fi lling operations in Portugal, the UK, Austria, Poland, Netherlands, Belgium, Turkey, China and South Africa, as well as its non refi nery-integrated wholesale business.

Also included in the sale is LPG storage terminals, bottle-fi lling plants, customer lists, operating licences and logistics assets.

It intends to retain its autogas business in Europe and move it into the Fuels Value Chains, and maintain LPG wholesale outlets to support its refi nery operations.

The LPG bottles and tank fi lling activities will continue to be managed as a global business until sold, BP said.

BP expects to complete any deal by the end of 2013, subject to regulatory and other approvals.

NEW CEO FOR SOUTHERN AFRICABP has also seen several changes at management level in Southern Africa.

The unit appointed Gerard Derbesy as its chief executive offi cer in September 2011.

Derbesy, formerly head of planning performance reporting for refi ning and marketing, has a

BP Southern Africa FEAturE


wealth of refining and marketing experience in the oil industry. This he gained from over 15 years in a variety of roles in continental Europe, the United Kingdom, and the United States, with responsibility for areas including refining, commercial optimisation, supply, and marketing.

BP’s southern African unit also named Priscillah Mabelane as chief financial officer and Alph Ngapo as chief operating officer.

The appointments followed the announcement of Thandi Orleyn as the company’s new Chairperson and were in line with BP’s succession plan policy to achieve transformation in the industry.

Of the appointments, BP said, “BP remains committed to ensuring transformation at all levels within the company and industry at large and will continue to make the appropriate and adequately-skilled appointments.

“We also have every confidence in these new appointees’ abilities to add to what is already a strong team at BP, capable of continuing to deliver and contribute to the company’s growth strategy and the country’s energy needs.”

A GLOBAL TURNAROUNDEarlier this month, BP declared itself “back on the right path” globally following the difficulties of the Gulf of Mexico oil spill with annual profits bouncing back from a $3.7 billion loss to a $25.7 billion profit.

“BP is on the right path,” said Bob Dudley, the chief executive who took over from Tony Hayward following the Deepwater Horizon accident.

“2012 will be a year of increasing investment and milestones as we build on the foundations laid last year. As we move through 2013 and 2014, we expect financial momentum will build as we complete payments into the Gulf of Mexico Trust Fund, restore high-value production and bring new projects on stream,” he added.

To learn more visit www.bp.com.

Look out for a full interview with BP next month. END


BP Southern Africa FEAturE

We want South African consumers to have access to BP’s best available fuel technology,

and the centre will

ensure that the fuels

developed for the local

market remain

unparalleled in quality and performance

G C C T V M O N I T O R I N G I N V E S T I G A T I O N S U N I T

A unique service offered to our clients, which involves 24/7 monitoring of premises and operations of business, be it storerooms, dispatch and receiving, cashiers at till points (voided and saved transactions), shelves and fridge’s, staff, manufacturing and production line and so forth. Security monitoring is an integral part of every business as even a small lapse may cause dangerous situations. GUERILLA CCTV Monitoring Investigations Unit provides tailored solutions backed up with in-depth business monitoring expertise, innovative methods and reliability that can make your business secure against danger.

The company prides itself in providing solutions and services to meet customer requirements. GUERILLA CCTV’s range of TANZANITE, PLATINUM, GOLD, SILVER and BRONZE Service Level Maintenance Agreements as tailored to meet different clients needs with regards to maintenance.

Our agreements provide steller maintenace coverage for Distribution as well as Retail operations, and packages are bulit around providing reactive and preventative maintenance, clean-ups and refocusing , refresher courses on system usage , emergency and weekend services to name a few.

Our company HSSE policies are an important part of the value added services we provide to our clients and an essential component of the company’s business strategy. Through observance and implementation of these policies we can better protect and enhance the enviroment and the overall well-being of our employees.

COMMITMENT TO HSSECOMPANY VALUES AND CULTURE:

“ The quality of a system is only as good as the after sales support and

service”


South Africa Magazine profiles Cargo Motors, a division of Imperial Holdings.

By robert Michaels

A P r o u D

c argo Motors is a division of Imperial Holdings and proudly represents one

of the leading names in the SA motor industry – Mercedes-Benz.

Mercedes-Benz’s history in South Africa dates back to the 1960s.

“Cargo Motors conducts business in three territories: Eastern Gauteng, Northwest and in Limpopo where it trades as Mercurius Motors,” a motor industry expert told South Africa Magazine.

Cargo Motors, was formed in 1955 when Jack Mincer bought the Saker-Bartle group.

The Cargo Motors website takes up the story: “This group of companies included D H Saker, the franchise holder for Studebaker cars and trucks as well as Vanguard cars and Mercedes-Benz trucks. The potential of Mercedes-Benz having its own identity was soon recognized and “Cargo” was formed purely for this franchise (Mercedes-Benz trucks), while D H Saker retained Studebaker and Vanguard.

“The name “Cargo” is a combination of the first letters of the first names of the founders of Daimler-Benz, CAR(L) Benz and GO(TTLIEP) Daimler.”

In 1956, Cargo sold a total of 93 cars, including a Mercedes-Benz 180.

“Cargo’s initial premises consisted of a showroom

and offices in 92 Marshall Street and a corrugated iron workshop in Harrison

Street. The total personnel complement was about 20,” the website says.

Cargo Motors FEAturE


That was quick to change, as Mercedes-Benz grew in popularity. “The rising Mercedes-Benz population in Johannesburg

necessitated the expansion of our services and in line with Cargo’s strategy to bring our services to our customers’ doorsteps; we acquired several service stations, namely Illovo, Braamfontein, Cargorama and Northcliff,” Cargo Motors’ website says.

The 1980s marked the beginning of a new era for the fi rm. The Sandton, Morningside and Wynberg branches were taken over by another Mercedes-Benz dealer.

In 1984 Mercedes-Benz SA was formed.“In our continued effort to grow we opened the Auckland

Park, Kew, Norwood, Rosebank, Benrose and Ridgeway branches and this made Johannesburg the city with the biggest number of Mercedes-Benz outlets worldwide,” Cargo’s website says.

In 1995, Safi con and its subsidiaries were sold mainly to Imperial Holdings. In 1998, Mercedes-Benz SA became DaimlerChrysler SA after the amalgamation between Mercedes-Benz and Chrysler in USA/Germany.



CMC Airconditioners is proud to be associated with Cargo Motors SA.

Specializing in air conditioning and ventilation, from initial design stages to commissioning. Contact CMC Airconditioners for personal service and professional advice.

Sales – Installations – Repairs – Service Contracts

CMC Airconditioners

IT’S MORE THAN JUST OIL.IT’S LIQUID ENGINEERING.

L.G.

In 2000, Imperial purchased Edenvale Motors and this became known as Cargo Edenvale. The new Cargo Edenvale and Cargo M2 City premises were built and known as Cargo Edenvale and Cargo M2 City.

In 2001, Chrysler/Jeep dealerships were established under the Cargo banner and in the same year Honda SA was created and they decided to set up their own dealerships in SA. This meant that they were excluded from the DCSA franchise.

In 2002, DaimlerChrysler SA took over the full franchise of Mitsubishi for SA. In 2004, Cargo Motors was appointed as a dealership for Freightliner. As a result, Freightliner/Fuso and

Western Star form part of the commercial vehicle arm of Cargo Motors.

In that same year, Cargo took over the Mercurius dealerships: Airport, East Rand Mall and Kempton Park and later acquired Polokwane in February 2005.

“Cargo and Mercurius both owned by the Imperial Group were consolidated under the Cargo Management structure as agreed by DaimlerChrysler South Africa,” Cargo’s website says, bringing the story of the company’s epic history to a near-close. “Although Cargo/Mercurius operate under separate names they are effectively run as one business.”

In October 2005 Magic Merkel Motors in Tzaneen was purchased. Today, the dealership trades under the name of Mercurius Motors Tzaneen and forms part of the Polokwane Market Center.

That brings us to the modern day.“Cargo/Mercurius Motors is a progressive,



stable company ranking with the best in the industry. We have a complement of approximately 1,100 employees,” the company says. “We proudly live up to the following values: Honesty, Respect, Passion and Care.”

Talking about the fi rm’s future, Rob Truscott, Cargo’s MD, adds: “Cargo Motors continues to grow. Cargo Motors is in the process of a major upgrade of its facility at M2 City, which services the Johannesburg CBD. It has also just acquired the franchise for Chrysler, Jeep and Dodge in the Bedfordview area. Cargo plans to establish a brand new commercial vehicle dealership in Polokwane.”

Cargo Motors is committed to excellent customer service. This commitment has led Cargo to achieve a number of dealer awards during the past four years, having won Mercedes Benz Passenger Car brand

centre dealer of the year twice, Mercedes Benz Commercial Vehicles brand centre dealer of the year twice and metro dealer Dealer of the year for Chrysler Jeep and Dodge once during that short period.

“We are committed to developing people and have a very active apprenticeship programme,” Truscott continues. “We currently have around 150 apprentices in our business. Apprentices are trained through an Imperial owned state of the art technical training centre located in Germiston. Cargo Motors has an apprentice to technician ratio of 1.5:1, which is benchmark in the industry.

“In the future we will need to get even closer to our customers. On the commercial vehicle side we need to understand more about our customers business to make sure that we provide them with a competitive edge.”

To learn more visit www.cargomotors.co.za / www.imperial.co.za. END

bestS u P P L y I n G bestS u P P L y I n G bestbestt H Ebest


Acti-Chem is a highly specialised, multinational

manufacturer and distributor of biocides, flame-retardants, personal care ingredients and

other speciality chemicals.By Ian Armitage

c ompetition in the chemicals industry is getting more intense. That is

the view of Graeme Robinson, Managing Director of Acti-Chem S.A. (Pty) Ltd.

Acti-Chem is a wholly owned subsidiary of an international group of companies, headquartered in the UK, with the main manufacturing plant and technical facility in Germany. Other production units and operating companies are strategically located in 16 countries worldwide. This extensive global network ensures not only rapid delivery, but also provides unrivalled technical support within easy reach of all markets.

“Our roots in South Africa were firmly entrenched 40 years ago, providing innovative and technologically advanced chemicals to local industries and customers abroad,” says Robinson, who joined the business in 1997, becoming Managing Director in 2006.

“One of the challenges we face on an ongoing basis is that competition has become more intense, not only through existing competitors but also new entrants wishing to gain a foothold in the industry.

“We ascribe this to a large degree on the international financial fall-out of the last few years where economic growth in many parts of the world has stagnated or gone negative with some exceptions, notably China, resulting in many businesses,

Acti-Chem FEAturE



Acti-Chem FEAturE

not only locally but also internationally, aggressively seeking out new business opportunities and markets.”

Despite increasing competition, Acti-Chem continues to go from strength to strength.

“We were satisfi ed with our performance in 2011 and we achieved many of our objectives and targets and, where we didn’t, we weren’t far off,” Robinson says.

Acti-Chem is a market leader in many markets and market segments and, where it isn’t, it has a signifi cant presence.

“Success for us is the collective success of our business rather than any specifi c area of operation,” Robinson says. “We focus on maintaining momentum in those areas where targets are being met or exceeded but we also actively and determinedly looking at those areas where we need to improve, where we can learn from past performances, and how we can move forward.”

Baker Tilly Morrison Murray is a medium sized fi rm with 7 partners and some 60 staff. The fi rm practices in accounting, auditing, company and close corporation secretarial services, taxation services and advice including VAT and PAYE audits, administration of trusts and estates and personnel services including payroll. We have a wide range of clients operating in a wide range of industries.

Our philosophy is to build lasting relationships with our clients, be accessible at all times to service their needs and ensure that we are equipped with the knowledge required to do so.

With the implementation of the new Companies Act on 1 May 2011, come opportunities to grow our business and to provide value added services to our existing client base.

With this new Companies Act which may see fewer companies requiring audits, we need to look for opportunities in other areas and one of these involves broad-based black economic empowerment (BBEEE) accreditation and another is to broaden our internal audit business.

Baker Tilly Morrison Murray

We achieved many of our objectives and targets

Graeme Robinson, Managing Director,

Acti-Chem S.A. (Pty) Ltd.

He is confident that the South African economy will remain resilient to external factors, namely Europe.

“Although we don’t foresee any significant step up in the economic activity in the chemicals industry, we are anticipating that it will be relatively stable with small incremental increases in growth over the next few years.”

Innovation is a vital ingredient for success and, as a multi national group, there are a number of initiatives currently taking place. “There is a lot currently taking place with regard to product innovation in our major R&D centres in Europe, which we are benefiting from and introducing to the South African market,” says Robinson. “Amongst others these revolve around green initiatives such as in our ACTICIDE® dry film applications where over a 10-year timeframe the Group has developed its protection technology for biocides into the AMME™ (Advanced Micro Matrix Embedding).

We focus on maintaining momentum



Acti-Chem FEAturE

“As our Group is opposed to animal testing and is a corporate sponsor of FRAME (Fund for the Replacement of Animals in Medical Experiments), we became the fi rst preservative producer to establish our own in vitro toxicological testing (IVT) facility,” he adds. “IVT supports the safety assessment of personal care, household and other industrial products without the use of animals. IVT provides the toxicological assessment of eye irritation, skin irritation, skin corrosion, phototoxicity and cytotoxicity of cosmetic ingredients and fi nished product formulations. This allows our customers to benefi t and make use of this initiative.

“Our products have also received ready acceptance by users and regulatory bodies such as the US EPA and FDA. We’re also supporting our major actives through the European BPD and other regulatory bodies.”

Robinson is confi dent of future success. “As a business we are well established in our chosen fi elds of operation where we focus on maintaining and consolidating our position.

“We are continuously seeking out new opportunities but predominantly those that align themselves with our current strengths and offerings and we’ll continue to pursue these objectives into 2012 and beyond.

“Although we don’t have any immediately capital expansion plans in South Africa, our Group is actively expanding its international foot print into countries such as China and Brazil.”

Acti-Chem’s activities centre on the supply of a wide range of products including ACTICIDE®, AFLAMMAN®, AFLAMMIT®, FLAMMENTIN® and its Microcare® cosmetics and personal care ingredients range.

Metallica Chemicals is proud to be associated with Acti-Chem as their manufacturing and distribution partner.

Our association, which has stretched for over a decade, has blossomed into a relationship that has effected mutual stability and growth in a competitive market.

We have tailor-made our operation to meet Acti-Chem’s short, medium and long-term needs.

Exploring synergies between us and investment in resources has resulted in process optimizations, cost effi ciencies and greener production. We are committed to delivering service excellence to Acti-Chem and being a key partner in their growth strategy.

Metallica Chemicals

“ACTICIDE®, generically known as biocides, offer safe and effective protection against the microbiological spoilage of a wide range of products, including paints, polymer emulsions, adhesives, inks, metalworking fl uids, detergents, pulp/paper and water treatment, wood, plastics and leather,” Robinson says. “Our technical expertise and experience in local and global markets has fi rmly established Acti-Chem as a leading supplier of isothiazolinone based biocides and an acknowledged world leader in the development of fl ame retardant chemicals. Our extensive range of personal care products have been specially designed to meet the exacting standards demanded by this industry.”

To learn more visit www.acti-chem.co.za. END


Brights Hardware celebrated its 40th birthday in June. It marked the occasion by taking part in an extreme makeover project for Haven’s Shelter in Mitchells Plain – a haven for abused women and children. cEo orlando Luis tells us more about it, his joy at marking the occasion in such a special way, and wider community work. He also discusses what makes Brights so successful, franchise opportunities and why he is optimistic about the future… life really does begin at 40!By Ian Armitage

Life begins

at40

Brights Hardware celebrated its 40th birthday

40

As the saying goes life begins at 40, just ask those at Brights Hardware – it entered its fi fth decade in June.

Brights, as you would expect, took the opportunity to celebrate all the hard work that has gone into establishing the business as a leading name on the Western Cape.

It marked the occasion at its (then) four branches (it now has fi ve… we’ll get onto that) and customers were able to enjoy an array of specials, discounts and other deals and offers.

The Brights Hardware family, however, started celebrating some months before – and in a very different way, CEO Orlando Luis tells South Africa Magazine.

“As fun as celebrations are, we wanted to do more than just throw a party or offer special deals and savings,” he explains.

So, between March and May last year, Brights took part in a special project in partnership with New Kidz on the Block – an “extreme makeover” project for Haven’s Shelter in Mitchells Plain, a haven for abused women and children.

“The management team, the family and staff wanted to celebrate the occasion and make sure the 40th birthday was one to remember,” says Luis. “We embarked on an adventure to give back to the community of Cape Town. Essentially, we wanted to show our gratitude for the past 40 years of Brights growing from strength to strength in the Western Cape and we decided the best way to do that was to invest in a project that could help transform lives. We chose to become part of an extreme makeover project for Heaven’s Shelter in Mitchells Plain.”

Staff, suppliers and customers alike - all eager to contribute - embraced the concept.

“It was amazing to see our staff, loyal suppliers, clients and even volunteers came together on this,” Luis says. “We are very proud to have been part of it and we aim to continue to help in the future.”

Luis, who is the same age as the company, says Brights, which opened its fi rst warehouse in Stikland in 1995, has grown considerably over the years.

And it continues to expand.“We’ve a long-standing and proud

history,” he says. “The business was founded in 1971 by parents - Mr and Mrs Luis. It started out as a general dealer specialising in electrical contracting and repairs. Through the years we’ve grown into a multi-faceted outlet for all building material and hardware needs.”

Brights opened its fi rst franchise store in Plattekloof in 2006. In 2009, it opened one in Blackheath, complete with Garden Centre and Drive Thru Yard, and it acquired Northern Trusses (now Brights Trusses) in the same year.

At the end of last year, Brights opened a brand new franchise store in Uitzicht, Durbanville.

“Months of preparations went into this store and it is now introducing a whole new community to a real hardware store,” says Luis, outlining the move. “The Uitzicht branch carries on the Brights tradition of great value for money, friendly advice and excellent customer service. Offering everything that customers have come to expect.”

He says Brights’ motto ”more than just a hardware store” has played a signifi cant part in its expansion.

“Our product range has grown from 5,000 stock items to over 50,000 and that is down to listening to our clients. If they came in for a product and we didn’t have it then we made sure we did for their next visit. In that sense we have grown with them, always striving to offer the

Brights Hardware FEAturE


highest standards of service and be ‘more than a hardware store’.”

And despite it’s growth, the business is still very much a family. The Luis children, their spouses and Brights staff members who are shareholders, own the Brights business today. This includes Orlando, Marina Da Silva (formerly Luis), Elsa Luis, Johnny Da Silva, Sergio Pedro, and Zulmira Pedro – all family members and part of the company’s management.

Mrs Luis is visible too, working as founding director, and has devoted her time to training and upliftment of Brights’ staff, Luis says.

Sadly Mr Luis passed away in 1998. He is still remembered as a leader with a great vision and bags of energy (his nickname was “Bright Spark”, from which the Brights’ mascot “Sparky” has been born).

“We are a family,” says Luis. “We now have 500 people in that family and we have fi ve stores throughout the Western Cape.

“Brights is still a truly unique and friendly experience,” he adds. “The main thing is that customers are part of the family; they feel that they are part of us.”

Luis is optimistic about the future and a pick up in the industry, following a “challenging” 2011.

“I think tough years create character,” he says. “Our staff has grown a lot this year; we are trying to provide as much training and upliftment as possible. We understand success is in the people and the changes you make to the people in the long-term. Going for 40 years, we know all about it; our people have got us to where we are.

“In terms of our future, the Cape always has great opportunities,” he adds. “Off the back of the FIFA World Cup, we’ve seen visitor numbers rise and we hope that will translate into increased investment in the area and the property market. We have a very positive outlook for Cape Town and South Africa and think that the property market will improve. I have been around the world, to a number of places, and I have found that our quality of life, here, is like nowhere else. There isn’t a place better than Cape Town.”

His vision is for the company is to continue developing and infl uencing their staff and growing their customer base in the Western Cape.

“We want to take what we have developed and expand, opening new franchise stores,” Luis says. “When we open one, it is via an existing member of staff, who is looking to further their career and develop and we give them a huge amount of support.

“Promoting from within means we get people that understand the brand and the business – Brights is in their blood, is part of them. Even in a recession we’ve opened a new store and we are looking at another now – maybe one a year, inviting staff to be involved in the running of those companies.

“We have to ensure the quality and make sure Brights’ service never drops,” he concludes. “Our challenge has remained the same since we opened our doors in 1971 and that is to maintain the highest standards of customer service.” END


Brights Hardware FEAturE

A cross the world obsessive fans collect them, urban kids play street games with them, and in Southern Africa

the dominant player turns out over six billion a year: metal crowns - all that lies between a bottle of a beverage and a thirsty drinker.

Johannesburg-based Coleus Packaging is the sole manufacturer of bottle crowns in South Africa and the biggest name and supplier in ten countries in the sub-Sahara region. Its market share within South Africa is over 90 percent, rising to 100 percent in Botswana, Lesotho and Swaziland. And Coleus is on the move.

With a 30 percent take in the rest of the region, Coleus is poised to seize market share from competitors, says Commercial Director Phillip Sathekge. “In particular we want to drive forward in those areas where we currently do not exist, and where imports make up a huge proportion of the market place. Take Angola as an example - a vast market and one that should be massive for Coleus. With no local supplier it must import from us, Europe or Latin America. So here is just one opportunity for us to gain market share.”

The origins of the bottle cap go back to 1890 and William Painter. Painter was an American, founder of a Fortune 500 company and a prolifi c inventor, holding 80 patents including a safety ejection seat for passenger trains and a machine for detecting counterfeit currency.


the crownc o L E u S W E A r S

Coleus Packaging is a peak performer – sole manufacturer of beverages bottle metal crowns in South Africa and the leading niche name in the

southern half of the continent. And as commercial southern half of the continent. And as commercial Director Phillip Sathekge tells South Africa Magazine, Director Phillip Sathekge tells South Africa Magazine,

coleus strategy is to extend its market and geographical dominance.

Patents more appropriate to our theme included a bottle opener, and a one-time bottle cap. Painter named it a crown after the ‘trade mark’ miniature diamond crown created for Queen Victoria. By the start of the First World War nearly all soft drink and beer bottles wore crown caps, and a century later Phillip Sathekge says demand across Africa is booming.

“In South Africa the market is almost fl at, slightly below current GDP growth. But elsewhere in Africa the growth is signifi cant. In Angola the economy is growing in double digits and the Zimbabwean economy is now being turned around and is already showing double digit growth as well.

“In other African countries outside South Africa there’s huge growth potential, although in

our case the easier markets to penetrate would be in the zero duties Southern African Development Community (SADC) nations. Without comparable trade agreements with South Africa, import duties could present us with challenges beyond southern Africa.”

Coleus produces a variety of metal crowns, tin plate and tin free steel; promotional, twist and pry off. Steel coil is cut into fl at sheets, each coated on both sides to prevent rust and ensuring lining adhesion and printing quality. The coated sheets are then decorated with a design using a high speed UV litho printer, varnished to a bright fi nish, protecting the crown from

Coleus Packaging FEAturE


geographical dominance.By colin chinery

Patents more appropriate to our theme included our case the easier markets to penetrate

geographical dominance.geographical dominance.By colin chinery


Coleus Packaging FEAturE

scuffing and pressed into crown shells. The crowns are then lined and packaged, 10,000 per box, palletised and stretch-wrapped.

Promotional crown tops - where a random unique prize draw number and organisers contact details are printed on the inside of a sealed crown – are a rising trend and market opportunity.

“We pride ourselves on the quality of our products. Unlike competitors who are also manufacturing cans and so on, we concentrate solely on metal crowns and we have not shifted from this remit.”

Coleus began operations nine years ago and was a wholly owned subsidiary of South African Breweries until 2006 when Nokusa Packaging, a black owned company, acquired a 40 percent stake. The nature of the product – and ease of transportation – makes for strong competition, both from local African companies and

In 2001 OD Investments (Pty) Ltd, a black-owned investment consortium acquired a stake in Rheem SA (Pty) Ltd. Today Rheem SA (Pty) Ltd is arguably South Africa’s largest 100% black owned manufacturer and marketer of industrial packaging. The company was established in 1967 and is today synonymous with the South African industrial packaging industry and steel/tinplate cut to length services.

Rheem has a staff compliment of 540 employees with 5 operating plants located in Durban, Alrode, Vanderbijlpark, Cape Town, Jet Park and a distributing agency in Port Elizabeth. The output from these plants supplies the South African market and many other neighbouring countries.

We pride ourselves in building strong business partnerships with our customers who are market leaders within their own industries. The more than 10 years of working closely with Coleus Packaging (Pty) Ltd in meeting their tinplate cut to length needs is a testimony to that strong business partnership.

Rheem SA (Pty) Ltd is SABS ISO9001 Certified. Our unique selling points are customised service, superior quality and customer service. For further details for your industrial packaging needs, please refer to our website on www.rheem.co.za.

Rheem SA (Pty) Ltdglobal manufacturers in Europe, Asia, and the Americas. And currently there is another issue – the exchange rate. “The key concern at the moment is the erratic behaviour of the strengthening Rand, and prediction of future movements is enormously difficult,” says Sathekge.

Ranged against these challenges is the Coleus brand and three key components: innovation, expertise, and quality.

Quality control through to end product is an established feature of Coleus. “To enhance this we have now invested in a full laboratory for incoming inspections, with raw materials from suppliers inspected for quality before acceptance into the process.

“We are constantly looking at innovation and coming up with new ideas relating to our offering. In terms of both the manufacturing of crowns and their usage we have massive expertise on both sides, with specialists from the brewing industry working alongside us. The focus here is on how a product or innovation would work for the customer as well as shaping the technical service we can provide.


“This is where our strength lies; expertise, product quality, innovative strategies, continuous product development, and the special relationship with our customers regardless of size. Our smallest customer takes some 900,000 crowns a month and the biggest 400 million a month. We like to react to customer orders and enquiries within 48 hours, and if we have to dispatch a specialist to a customer’s plant, then within seven days.

“On top of normal after sales service, we deliver on time in full. We say that whatever you order, you will receive it on a given day and in full. We’ve made huge strides in being able to achieve 99.9 percent, but that 0.1 percent shortfall is still not good enough and we are striving to the point where we have 100 percent service delivery.”

Innovations currently under assessment include an increase in container box capacity from 10,000 crowns up to 380,000 – a major gain for customers – and extending shelf life through enhanced oxygen scavenger lining.

Down gauging is another. At the moment crowns are made with a 0.22 millimetre steel gauge, and Coleus is running customer trials with crowns down-gauged to 0.21 and 0.20. “Crowns would become slightly thinner without compromising functionality. The aim is to make material savings that can be passed on to the customer,” says Sathekge.

“Because of our comprehensive expertise we are able to offer more than is available from those competitors who, while focussing on crowns, do not have the specialised knowledge of what happens on the customer side. We undertake to go to the customer, perform technical audits on their equipment, and give them advice in terms of potential problems, operational enhancements, and opportunities.

“This is just one of the services Coleus Packaging provides that gives us competitive advantage, customer satisfaction and appeal, and our pre-eminent position in the southern Africa market.”END


South Africa Magazine travels to Zimbabwe to visit tilapia fish farmer Lake Harvest Aquaculture.By Ian Armitage

future F I S H O F T H E

G arikai Munatsirei, General Manager of the largest tilapia producer in Africa, Lake Harvest, says he is operating in “an insatiable market.” He has good reason.

Tilapia is a fi sh, which could become the biggest food phenomenon of this century.

“Tilapia is a sustainable replacement for cod, for instance. In the US it has really taken off in the last 15 years,” says Garikai.

Lake Harvest’s order books are growing and, unsurprisingly, it is looking to expand.

“We are increasing production to 25,000 tons per annum,” says Garikai. “The expansion programme started at the end of 2009. We are currently operating at between 7,500 tons per annum. Obviously that will more than double in the near future.

“As prices rise and product availability falls, we expect to grow,” he adds. “The expansion will be complete in fi ve years.”

In a recent report the UN Food and Agriculture Organisation (FAO) painted a bleak picture of the state of global fi sheries. Fish consumption has reached an all-time high, while 32 percent of world fi sh stocks is estimated to be overexploited, depleted or recovering, and need to be urgently rebuilt.

“For a company like us, able to produce a sustainable, high quality product, the market potential is quite simply enormous,” Garikai says.

It was in 1997 that Lake Harvest Aquaculture was fi rst granted a licence by the Zimbabwe Parks and Wildlife Management Authority (ZPWMA) to produce tilapia in

Lake Harvest FEATURE


cages in the eastern basin of Lake Kariba.

The total area of the licence was 12 km2 and the licence initially allowed for the production of up to 5,000 tons per annum, this has since been increased to 25,000 tons.

Lake Harvest plans to expand this in a staggered manner to reach maximum annual production of 25,000 tons.

“That will be achieved full through utilisation of our current leased area,” Garikai says.

The project is the only one of its kind in Zimbabwe that involves cage culture of fi sh on an industrial scale and is also currently the largest fi sh farming enterprise in Africa. “We breed and rear the fi sh in land-based fi sh ponds,” Garikai explains. “We then grow the fi sh in fl oating fi sh cages in the lake and then we process the fi sh in our state of the EU approved factory.”Fillets from the factory are exported mainly to Europe and South Africa while the whole bream and by-products are

www.southafricamag.comwww.southafricamag.comwww.southafricamag.com

We breed and rear fish in

land-based fish ponds. We then

grow the fish in floating fish cages in the lake and then we process

the fish in our state of the art EU approved

factory

As VadoMark Logistics is proud to be associated with Lake Harvest as they take on a sustained growth path throughout the sub region.

We have developed a sub regional network of offi ces with the sole purpose of providing effi cient logistics services, reducing lead times while providing shipment visibility.

Our inbound supply chain solutions provide our customers with more control of their purchases from suppliers. The solutions mainly focus on the coordination of processes and fl ows of materials from their suppliers with the goal of making them more effi cient and more cost effective.

Our customers gain visibility of their raw material orders in terms of:

• Order balances

• Call offs

• Dispatches

• Freight movements

• Stock

• PODs

Through replenishment management and proactive supplier and transportation management we add value in the following key areas:

1. An improvement in service levels

2. A reduction of stock

3. A reduction of costs

VadoMark Logisticssold in Zimbabwe, Zambia, South Africa and the regional markets.

“The expansion will have a significant social impact,” Garikai continues. “Lake Harvest currently employs around 700 people and the workforce will reach 2,000 after the expansion.

“The project increases food security locally and low income groups in the area who consume fi sh will have protein in their diets. Expansion would help cut the price of fi sh considerably too, while we also support the local community with investment in education and healthcare.

“Why are we looking to expand? Well, we are trying to say that because the supply of fi sh from the wild is dwindling all the time but demand for fi sh continues to increase worldwide. People eat fi sh for health reasons and we feel that we will be able to supply fi sh with the wild supply declining. It is an opportunity for us to meet increased demand. It is an opportunity for now and in the future. That is why we are doing what we are doing,” Garikai says.

It is a remarkable success story, made all the more remarkable given the recent struggles of the country it operates in – Zimbabwe.

Zimbabwe’s economy was battered heavily by hyperinfl ation, at one time

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estimated at 500 billion percent. The power-sharing government formed in February 2009 has led to some economic improvements, including the elimination of the Zimbabwe dollar and the removal of price controls. The economy is registering growth, but will be reliant on further political and economic stabilisation.

“We did very well to survive hyperinflation,” says Garikai. “The company was started in 1997 and we opened our EU approved factory in 1999 and EU exports commenced immediately. In 2000 the well-documented problems of Zimbabwe for the next 10 years started. Between 2003 and 2005 we started groundwork in Uganda and SON Fish Farm Uganda pilot project opened in 2006. From 2006 to 2007 we did Ghana

groundwork, but not much has happened there yet. By 2008 there were early signs that Zimbabwe was reforming. In 2009 we got a new investor - African Century Group and we haven’t looked back.

“Today we supply the English market to Waitrose through New England Seafood. Tilapia has been farmed in Lake Kariba for the past 15 years.”



We did very well to survive hyperinflation

VadoMark Logistics is a specialist provider of multi-modal logistics, freight forwarding and supply chain management solutions mainly to companies trading in Africa.

With offices in South Africa, Nigeria and Zimbabwe and an agency network covering the whole continent, we make doing business in Africa sweet, offering end to end logistics solutions, supply chain management and global freight forwarding.

We offer a full range of cargo movement and storage solutions to an international customer base as well as a streamlined shipment visibility and monitoring through our state of the art information management system.

With a specialised industry focused approach, our global freight teams ensure your cargo travels the safest, expedient and cost effective way.

Our web-based global information management system will enable you to request quotes and book shipments online, track and trace and generate reports whenever you need them.

With many years of experience in cross-border trade, VadoMark Logistics can provide you with all required services to move your goods worldwide.

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South Africa - either in a multi-user or customer dedicated environment. Our information systems are based on a global standard that facilitate the seamless transfer of information.

Our warehouse and inventory management services ensure that all material entrusted to VadoMark Logistics’ care is stored and managed in a safe, compliant, and professional manner.

We are truly the experts when it comes to custom packaging and crating suitable for air, sea or road shipping. We can pack and ship those fragile, large, awkward and valuable items like computers, servers, artworks and antiques. We specialise in accessing the right type of packaging for any item and using all other resources available to protect your shipment.

We pack your items with our latest and state-of-the-art packaging techniques.

For more information, visit the company website www.vadomarklogistics.co.za



The fi sh is a farmed product whose diet is 95 percent vegetarian and which grows quickly in its indigenous environment in the warm waters of Lake Kariba. At one time the largest man-made lake in the world, Garikai says.

“How are we performing? We are happy with production levels,” he says. “I think the business is doing well. We were unfortunate that our plans were disrupted by the fact that Zimbabwe was crippled by hyperinfl ation. We were struggling to survive until the economy dollarized in early 2009. We switched to the US dollar. It made it easier to work. However, this brought new challenges as all costs like labour, feed raw materials, utilities hardened. Since dollarization, labour costs have increased by over 10-times

Smart Logistics can create logistics solutions to meet your individual needs. When using our service you can measure performance and progress, set achievable targets and have time framed deliveries. You can trust we will deliver an effi cient service for a realistic charge.

We specialise in customs clearing, forwarding and customs consultancy.

Smart Logistics is proud to be associated with Lake Harvest.

Smart Logistics


The project increases food security locally and low

income groups in the area who consume fish will have

protein in their diets

Nutrition for Africa is proud to be associated with Lake Harvest. We look forward to mutually growing our businessin a win-win relationship that we have enjoyed over the years.

NNutrition for Africa supplies: crude oil, mechanically extracted soya meal, cotton cake and a wide range of animal stock feeds.

P.O Box Cy517, Causeway, Harare, ZimbabweTEL: +263 772 203 087/ +263 773 053 781FAX: +263 4 776350, 2926045EMAIL: [email protected]/[email protected]

in real terms and unions used to negotiating wages in Zimbabwe dollars under hyperinfl ation are still clamouring for more!

“Overall, the business environment has improved signifi cantly compared to the Zimbabwe dollar era up to end 2008; our biggest threat now is overpriced labour compared to our neighbours which makes Zimbabwe an expensive place to do business. We think most of the problems are behind us and we are looking to the future with guarded optimism.

“Tilapia, we are sure, is the fi sh of the future,” Garikai concludes. “It is the most sustainable farmed fi sh available to us and is a great source of protein. We are sure that without sustainable aquaculture fi sh will disappear from our oceans and diets.”END


M o v I n G I n t H E right right

Johannesburg’s bus company, Metrobus,

provides public transport for everyone from scholars

to pensioners. Having run for decades, it is now

ensuring it is ‘future ready’ through integration and

green innovation. By Jane Mccallion

M etrobus is a municipal-owned bus transportation company in Johannesburg. Owned by the city, the company transports around

six million passengers per year. As well as commuters, Metrobus also transports scholars and pensioners around the metropolitan area and has six specially adapted buses that are exclusively used by people with reduced mobility.

The City of Johannesburg is currently on a drive towards increasing the use of public transport; Metrobus, naturally, has a major role. “We want to encourage people to move away from cars and into public transport and the bus is one of those methods,” says Lawrence Maqekoane, who became Acting Managing Director of Metrobus in September 2011.

One of the ways in which this is being implemented is the integration of all the public transport services in the city. “We have Metrobus, which is a medium density method of transportation, a high density bus rapid transport (BRT) system and also Metrorail and the Gautrain, which runs through the city. So we are working with the Department of Transport in Johannesburg to integrate everything, meaning that you are able to change from one mode of public transport to another easily. We also want to move towards a system where one ticket can take you on all methods of transport.”

As a public transport service provider, there are a number of challenges that Metrobus faces, however the largest is the fact that its fleet is comprised of aging buses. “The challenge is how do we maintain them so that they don’t breakdown and we end up cancelling that journey, leaving passengers stranded,” says Maqekoane. “We have a trained fleet of mechanics who regularly service our buses to ensure that they run as smoothly as possible, but that can only overcome a certain number of problems.”

Probably the most difficult problem that the company has to deal with in this area is the actual design and engineering of the buses themselves.

Metrobus FEAturE


“We would sometimes find that the bus was manufactured for a different climate, often a European one where it is cold,” he explains, “Then when the bus is imported here, the climate is very different, it is very hot, and the vehicle can’t cope. The design itself, how the vehicle was designed and engineered, is not suitable for local conditions.”

Consequently, Metrobus works with its mechanics to identify the problems that the buses are suffering due to climate and then works with the manufacturer to adapt them to local conditions.

Another way that the company is seeking to resolve the issue of an aging fleet is to purchase new buses. Over the next two years it will be introducing 25 new vehicles to its stable, but these are not merely like-for-like replacements for those that are decommissioned. “We have problems with fuel pollution in Johannesburg, so one of the strategic objectives for the city is to reduce emissions. We also realise that we need alternative sources of fuel that are not linked to crude oil,” says Maqekoane. Currently, Metrobus is running a pilot scheme of two buses, one running on compressed natural gas (CNG), the other running on bio-ethanol. “We have allowed ourselves these two guinea pigs because we didn’t want to take a big risk in the project.”

Another positive aspect of using alternative fuels, particularly bio-ethanol, is that it

creates jobs in rural areas. “The ethanol is made from crops such as sugar beet, which require people to sow, maintain and harvest them, so it creates employment too.”

The trial has now been running successfully for 18 months and is now ready to move into a new phase: Companies were invited to put forward information to the company regarding buses that use alternative fuels. “We have learned a lot during the trial about running green buses, for example different fuels require different tanks and different storage. But in the ‘request for information’ phase, we are open to suggestions on any type of alternative fuel,” says Maqekoane.

This phase will be finished once Metrobus has decided what kind of fuel it will use across all its new green buses and will then enter an invitation to tender stage. It is hoped that all 25 will be on the road at the end of the next financial year, however regulation has to be put in place by the local government before the full rollout can take place. “We can only move ahead once the regulatory framework has been put in place,” explains Maqekoane. “This is a new product and a new technology to Johannesburg and there are many things for the city to consider: Will we have to pay duty on the fuel? If so, how much? Which acts of government will apply? So until that is sorted out, there are still many uncertainties.”


Metrobus FEAturE

Recently, Metrobus revised its schedule and routes for the first time in five years. “One of the advantages of the service that we operate is that it has flexibility. So we could be using a certain route but over time needs change and it is no longer suitable. There may be a new shopping centre and new developments - now there is a shift in terms of the demographic. This route you may now have fewer people and people who are walking a kilometre to get to a bus stop. You need to respond by moving the bus stops, changing the route and changing the timetable, and that’s what we have done.”

Over the next five years, Metrobus will be consolidating its place as part of the integrated transport plan for Johannesburg, says Maqekoane. “It will be like a spider system where we feed into other modes of transport. We have the BRT, but it travels only on a tram route like a train. So to get from your house to the station, you can use Metrobus. We could also feed into the Gautrain. So we see Metrobus as a medium density transport mode that has flexibility to carry passengers to other modes of transport and we are part of the negotiations with other transport modes about that.” END

We want to encourage people to move away

from cars and into public transport and the bus is one of those methods


promisepromisepowerpromisepowerpromise


From a Swaziland orphanage to large corporations, SAR SA is bringing power, vision and promise. technical Director André Badenhorst talks to South Africa Magazine about solar’s potential for SAr and southern Africa.By colin chinery

S A r A n D S u n : t H E

A n D t H E

S AR is the bringer of sun power and stability to a feisty symbol of hope in an

impoverished nation. It was a fast turnaround – 14 days – but Bulembu knows about sudden change and its consequences.

This is an almost forgotten town, once home to fl ourishing white asbestos mine in the far north west of Swaziland. But overnight in 2001 the business went into liquidation, and workers arrived to fi nd the owners had done a midnight bunk.

Almost at once 10,000 people took to the roads looking for work. With just 50 left behind, Bulembu was a ghost town

But if down, Bulembu - in a remarkable turn of fate - was not quite out .Six years ago 1,700-hectares were sold to Bulembu Ministries Swaziland, a not-for-profi t enterprise in a country whose 40 percent plus HIV/AIDS infection rate has created a massive orphan crisis.

BMS has a vision: to rejuvenate the town to a self-sustaining entity by 2020, combining sustainable, innovative enterprises with orphan care for 2,000 of Swaziland’s most vulnerable children. And through education, care, health provision and commerce, BMS is working to develop a new generation of emerging leaders.

But commerce needs electric power, and with Government supply intermittent, of low quality, and prices escalating, Bulembu’s businesses struggled to remain sustainable.

SAR SA FEAturE


So BMS approached SAR Electronic SA in Pretoria for a solar PV power solution, and fi ve months on is delighted with the results. “The installation of these solar panels is an exciting step forward in realising our goal of self-sustainability and moving to clean renewable energy. SAR’s technical aptitude, care for the client, and professional demeanour was clearly recognised.”

SAR designed and installed the open fi eld plant - 108 mono-crystalline solar modules and two SMA STP12000 inverters – producing 25kW of electricity – eight percent of the Bulembu’s electricity needs. “It’s a turnkey project of which we are very proud. And with the price of solar installation dropping every six months, we would be able to complete similar projects at a far cheaper rate. Bulembu is looking for ways to get further funding to increase their solar array, and we are talking with them and hope to be back,” says SAR’s Technical Director André Badenhorst.

SAR SA is a subsidiary of the German SAR Group headquartered in Bavaria that arrived in South Africa in 1997 to start an E46 car project for BMW at its Rosslyn plant near Pretoria. ”We won the order to do the body shop automation, and with it a two year service contract. BMW is still our largest client.”

Traditionally an industrial automation business specialising in manufacturing systems, robotics and material fl ow systems, solar is a recent division at SAR SA. “Our background has given us a lot of the skills in the electrical sphere. The solar business in South Africa is quite attractive at the moment and we were able to enter into the green energy realm through the related division of our mother company in Germany. We have engineers that perform solar design,


SAR SA FEAturE

SEWEurodriveisproudofthepartnershipithasbuiltwithSARElectronicduringouryearsofdoingbusinesstogether.WehavehadvariousdealingswithAndreBadenhorstandhiscreativethinkingcombinedwithengineeringknow-howhasensuredmanyworldclasssolutions.TheSEWproductscomplimentsthefinemotorcontrolrequirementswhichSARimplementsforthevariousapplicationstheydesignandinstall.ThemainproductsofSEWEurodrivearegearedmotors,driveelectronics,industrialgears,servomotorsandrelatedservices.SEWEurodriveispresentwhereeverthereismotion,soyouwillfindusinmorethan80%ofallindustriesincludingmining,foodandbeverage,timber,automotive,portsandharbours,watertreatmenttonameafew.SEWensuresthatassemblylinesarefullyautomatedusingthelatesttechnology.OurMovidrives,Movitrac’s,Movitrans,servomotorsandgearedmotorsensuresmoothtroublefreerunningandiscurrentlyinstalledinvariousautomotiveplantstonamebutone.

SEW Eurodrive

Installed array at Bulembu

and we use the installation team from our industrial automation division who are highly qualified to undertake large solar projects in South Africa.”

Following a long period of training and knowledge transfer from Germany, SAR SA’s Green energy division began marketing and installations work last year, and Badenhorst is “very happy” with the results for 2011.

“We completed three major projects, two of which are still under confidentiality agreements, and ended the year with 150 kW installed, the great majority large projects for corporations.”

Unsurprisingly the Bulembu project has brought a personal sense of fulfilment. “It’s very nice to work with the people from Bulembu, a team of most dedicated people working in a very good cause. To be involved in a project where you can make a real and fundamental difference to people in their daily lives is most special.” But Bulembu also brought special challenges.

We completed three major projects,

the great majority large projects for

corporations


“Since BMS is a non-profi t organisation (external funding to undertake this project was done through the Development Bank of South Africa and the Energy and Environment Partnership) our negotiations with Bulembu took many years before implementation. We’ve been in touch with them all the way through and it took us a long, long time before we reached the point of go-ahead.”

The project was completed in eight days followed by three days monitoring and local training. “When we undertake projects on a turnkey basis we are able to be in and out of a client’s premises in as short a period of time as possible. We spend a lot of time on our planning and design. Having a centre of excellence at our German headquarters where they

consistently do large solar projects means we are able to tap into their skills.

“Coming from our traditional side of the business – automation – we believe in acquiring clients, long-term relationships, giving our clients good service and keeping them for ever. A client can call on us at any time, and as soon as we can we will give them the assistance they require.”

In Europe and the USA, solar power has a unique buyer inducement - households with solar power can sell their surpluses into the grid, an incentive so far unavailable in South Africa and Swaziland. “Unfortunately there’s no motivation for households to put solar PV panels on their roof to sell electricity during the day when they are at work, so this market doesn’t really exist at the moment.

“Yes it’s a frustration because this is the model we see working very well in Europe. Any individual with a small amount of capital can start a little business by installing a solar pv plant on his roof and selling electricity to a utility during the day. But here in South Africa it’s the infrastructure that is holding everything back.


Terrafi x anchors and frames featuring the drilling machine

Installation at school in Delmas

Remove that barrier and you open up a very big business.”

Meantime André Badenhorst sees two growth areas. One is among consumers who need to save electricity or where Eskom is unable to supply new residential area or business. “A major hindrance to growth is Eskom’s inability to supply new businesses with enough electricity. Our climate is the best in the world when it comes to solar irradiation - the amount of sunlight hours during the day and through the year. If we were able to sell power back into the grid I think it would motivate a lot of people to install solar power on their roofs which in turn would alleviate some of Eskom’s problems.”

The second growth market follows the South African Government’s recent award of 18 Independent Power producers (IPPs) licences for very large mega watt solar projects.

”To accomplish them you will need a lot of skills that don’t yet exist in South Africa. So we see a lot of growth for consulting and installation.

“There’s an impression out there that solar is a very easy industry, a simple system to put together. But that is very false. To assemble a large scale solar project takes a lot of planning, detailed design and a lot of project management. Without this you will have a fl awed installation and be continually returning to make adjustments for your client for weeks afterwards.”

Next month (March 26 – 29), power producers and utilities, large energy users, government and investors will gather at Africa’s largest conference and exhibition of its kind - Power and Electricity World Africa – at the Sandton Convention Centre, Johannesburg.

SAR SA will be sharing a stand with Terrafi x solar frame and plant systems - the mounting system SAR uses in projects like Bulembu. “Anyone looking to implement any kind of solar project should seek out the company with the experience, who they can trust to do the turnkey project for them. Do come and visit us.

“With SAR you come to a company that has more than twenty years experience in the engineering fi eld and with a footprint across the globe. You come to a company that can give you quality German engineering offering a full turnkey high quality projects.

“Specify your problem and we will come up with the solution. And we will be with you all the way to the end when you have a fully functioning business.” END


SAR SA FEAturE

Specify your problem

and we will come up with the solution

Installation at school in Delmas

i n 30 years Johannesburg-based Refraline has grown to become a major refractory contracting company in sub-Saharan Africa with a reach extending to the Middle East

and Australia. Refraline specialises in the installation, repair

and maintenance of refractory solutions across a wide spectrum of industries including iron and steel, Ferro-alloys, non-ferrous and platinum group metals. Chemicals, petrochemicals, power generation and mining, are among other key customer sectors. Current assignments include a R10 million copper mine furnace re-lining project in Oman.

Refractories are heat-resistant materials forming the linings for high-temperature furnaces, reactors and processing units. As


Leading refractory contractors Refraline of Johannesburg is winning

increasing business across sub-Saharan Africa and

beyond. “Some of our Europeans competitors see

difficulties in this market, but coming from Africa one

understands Africa a little bit better,” says Managing

Director Manfred rosch.By colin chinery

R eF R A Li n e

H O T S p O T SK E E P S o n

S E A L I n G t H o S E

R eF R A Li n e

H O T S p O T S

well as resistance to thermal stress and other heat-induced physical phenomena, refractories must also withstand physical wear and corrosion by chemical agents. More heat resistant than metals, refractories are essential in the process of heating applications above 1000°F (538°C).

Industrial refractories are used to build structures subjected to high temperatures - line boilers, furnaces of all types and kilns - for example. And their versatility is demanding. Depending upon the application, refractories must resist chemical attack, withstand molten metal and slag erosion, thermal shock, physical impact, catalytic heat and similar conditions.

And since the various ingredients of refractories impart a variety of performance characteristics and properties,

many refractories have been developed for specifi c purposes.

Refraline’s reputation has been built on reliability, fl exibility and fast response times. “When a unit is switched off for maintenance a fast turn-around is often needed. Switch-off can be costly, sometimes R1 million a day on lost production. So fast response and fl exibility are key factors. Quality and our excellent safety record are others around which we have built our business model,” says Managing Director Manfred Rosch.

The company was developing projects in neighbouring countries and the Middle East as far back as the late 1990s, and 15 years on its footprint extends to Botswana, Namibia, Lesotho, Swaziland, Mozambique and Mauritius. Ethiopia, the Middle East and Australia have also seen entry.

Refraline FEAturE


We are already

doing a lot of major projects

in the Democratic republic of the congo, significantly

so in the mining sector

“We are already doing a lot of major projects in the Democratic Republic of the Congo, signifi cantly so in the mining sector and we see considerable growth in this region as well as in neighbouring countries like Zambia.

“More political stability is coming into the region and the more stability the greater the investment that will follow. And we are very well placed to take advantage. Some of our Europeans competitors see diffi culties in this market, but coming from Africa one understands Africa a little bit better.”

The stronger rand and increasing labour costs are making overseas markets - where China and India are especially active - more competitive. “In general terms, the stronger rand is not having such a huge impact. We are not after all in the export of materials. We are exporting mainly services and services become more expensive when the rand gets stronger. On the other hand we benefi t on the imports side, and this helps to keep the balance.”

Referrals and repeat business are impressive factors in Refraline’s growth. “For example we had successfully undertaken BHP Billiton projects in South Africa, and as a result of their success we were invited to tender for the business in Tasmania.

“A contract such as this depends not only on availability, but issues such as what strengths we can bring to the party - for instance the current availability of expertise here in South Africa - when a potential customer approaches us.”

Refraline has a core workforce of more than 300 permanent skilled staff, supplemented by a large pool of temporary personnel. The skilled are mobile - largely domiciled in South Africa - while the less skilled are recruited in the project localities. “But in terms of moving people not all countries are fl exible and this can be a limitation for us.”

For Refraline, as for most companies operating in the manufacturing sector, skilled labour is a continuous challenge. “It’s one we recognised many years back. We do our own in-house training, taking in the region of 10 apprentices every year, and then depending on their potential they move on and up to the supervisor level.”

There is a parallel issue. “You cannot study refractory as a subject at universities; it’s something you have to learn on the job, so we recruit engineers from related industries who then learn about refractories and our specialities.”

Over the past two years the company has expanded both through internal growth, and the acquisition


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Refraline FEAturE

and development of two companies, re-named Refraline SA Industrial Linings, and Refraline Natal. “We are building a Refraline brand,” says Rosch. “We have succeeded too in penetrating deeply into petro chemicals and glass, something that owes much to our excellent safety procedures and record, another strong feature of how we differentiate ourselves from our competitors.”

The company is especially well equipped to handle several refractory contracts simultaneously, employing sophisticated techniques and using specialised construction equipment. For effective lining removal in kilns and ladles for example, Refraline has acquired remote-controlled Brokk MB 330 and MB 150 demolishing machines, which reduce downtime, increase productivity and improve safety.

Other world-class equipment includes hydraulically operated, telescopic, rough terrain forklifts that deliver refractory materials to otherwise inaccessible locations, special mixing and pneumatic conveying machinery, and pneumatically operated bricking rigs.

“The construction industry remains very labour intensive, and while machinery such as the Brokk cuts down on some labour, the installation area it is still very labour intensive. There have hardly been any major developments in technology or techniques over the past 15 years that would enable more equipment to be applied and the labour portion in the bricklaying area reduced.”

Even so for Refraline innovation is continuous priority. “You have to position yourself in the market, which segment you want to place

yourself. Refractory issues and problems cannot be solved by refractory people alone. One needs to open up to the wider industry and take into view the broader operational issues, working together with the customer.” The benefi ts are considerable. At BHP Billiton’s plant at Meyerton near Vereeniging in Gauteng, Refraline succeeded in more than doubling the life of a lining. This was achieved in collaboration with BHP Billiton’s own engineers by changing the lining design and the selection of alternative materials. “I believe this is the way forward; one cannot look at these issues in isolation any more.

“We have begun 2012 with a very full order book and are confi dent about growth continuing into 2013. We are very very positive about the outlook for Refraline. At the end of the day we look at issues from the perspective of the client and what they need. Our focus now and always is on the customer.” END

i t has been an interesting start to 2012 for SA Post Offi ce (SAPO) to say the least.

In January group CEO Motshoanetsi Lefoka resigned.

The Communication Workers’ Union (CWU) welcomed the resignation after the SAPO said had reached a “mutually agreed separation” with Ms Lefoka.

The terms of that agreement were confi dential.

The SAPO said Nick Buick was being retained as acting group CEO and that a new head would be recruited.

The CWU said it consistently highlighted maladministration and


In January the SA Post Office (SAPo)

announced that Group cEo Motshoanetsi

Lefoka had resigned following ‘irregularities’

at the Post office. South Africa Magazine

examines the case.By robert Michaels

amid lease irregularity

post Offi ce ceO departs

corruption under Lefoka’s leadership.

She was placed on special leave in October when a corruption investigation started.

That month there was also a mutual agreement on the termination of the contract of chief operating offi cer John Wentzel.

The CWU urged the SAPO board and the offi ce of the Public Protector to release fi ndings of the investigations as soon as possible.

It believed there were a number of individuals involved in corrupt practices at SAPO.

“We would like to meet with the board to find out exactly what the terms of the resignation were,” CWU deputy president Clyde Mervin said, welcoming Lefoka’s departure, saying the union had been vindicated for raising issues around irregularities at the Post Office.

“The Ecopoint investigation led to two processes: the hearings against three executives - Ms Motshoanetsi Lefoka (the Group Chief Executive Offi cer), Mr. John Wentzel (the Group Chief Operating Offi cer) and Ms M. Lancaster (Group Executive Strategy) with regards to governance/PFMA breaches,” the SAPO said in a statement. “A separation agreement between SAPO and the Group CEO as well as COO was concluded.

“Ms Lancaster was charged and subjected to a disciplinary enquiry before an independent external chairperson. The chairperson of the disciplinary enquiry found Ms Lancaster not guilty of the charges.”

The SAPO said it had referred alleged criminality by two senior managers to the South African Police Service. “The SAPS investigation is progressing and the Company reserves its right to institute action against employees to recover any losses it may have suffered as a result of any action by the employees during employment by the Company,” it said. “The Board of Directors and the management of the SA Post Office however recognise that disciplinary action is just one part of remedial action. Attention is focused on corrective action to eradicate all forms of irregular, fruitless and wasteful expenditure.”

Policy framework had been developed for managing irregular, fruitless and wasteful expenditure, which has been approved by the Board of Directors, the SAPO said. “The Executive Committee (Exco) has appointed a subcommittee to monitor irregular, fruitless and wasteful expenditure and to regularly report to Exco,” it added.

The case against Lefoka centres on the lease of new offi ces involving irregular and wasteful expenditure of nearly R450 million.

Last year the SAPO board announced that R19 million in “fruitless and wasteful” expenditure and R425 million in “irregular expenditure” were incurred in the process of moving the Post Offi ce’s head offi ce from Pretoria to the new building in Centurion.

Despite these irregularities, the SAPO posted strong fi nancial results for the fi nancial year ending March 2011, achieving a three percent increase in revenue to R5.8 billion.

“In an environment where established global postal operators face structural decline with a huge fall in mail volumes and stiff commercial pressures, it is

SA Post Office FEAturE



SA Post Office FEAturE

commendable that our revenue diversifi cation strategy continued to strengthen as mail volumes declined,” said group Chairperson Vuyo Mahlati.

“Other highlights, which are a critical function of our efforts to ensure growth and sustainability, include the robust performance of the Postbank and the proactive approach to corporate governance by the board,” she said.

Postbank posted an increase in non-interest revenue of R88 million as well as an increase if R331 million in its depositors book, despite a low interest rate environment.

During the period, 1.71 million new addresses were rolled out to people in rural and under serviced areas, the SAPO

Criterion Equipment, specialists in the supply and support of leading brands of material handling equipment – including TCM - has been the sole supplier of forklifts trucks to South African Post Offi ce (SAPO) for many years. “SAPO’s highly pressured operations around the country demand an effi cient forklift service, with no interruptions to postal handling as a result of unnecessary breakdowns of equipment,” says Brenton Kemp, managing director, Criterion Equipment, part of Invicta Holdings. “Our pledge to every customer is service excellence. Criterion Equipment supports its machines with a reliable maintenance and support service to ensure absolute reliability and optimum performance of every forklift truck. Reliability of our products is simply non-negotiable.”

TCM environmentally friendly FRSB-VIII reach trucks - known for safe, efficient and precise operation - are modified to suit SAPO’s exact handling requirements, including the need to move roll-tainers around each facility.

Criterion Equipment’s service encompasses the sale of new and used forklift trucks, long and short term rentals, service and maintenance contracts, as well as the supply of genuine TCM parts.

Criterion Equipmentadded. ”An address means that people can become economically active,” said Mahlati. “Ordinary citizens can now open accounts as well as comply with the statutory requirements of RICA and FICA, for example.”

Other highlights worth mentioning included the opening of 26 new post offi ce outlets, as well as more than two million motor vehicle licenses being renewed.

In May 2011, this service was extended to a further 93 post offi ce branches in Gauteng, bringing the total to 259 branches now issuing motor vehicle licenses.

The group’s focus going forward is on change management leadership for a client-centred, cost-effective and effi cient corporatisation of the SAPO in general, and the Postbank in particular.

“In this regard attention will be on human capital development, operations systems and controls improvement, as well as corporate governance to ensure that we deliver the world-class service that the nation has come to expect,” said Mahlati. END

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IsandoP.O. Box 124151, Alrode, 1451Tel: +2711 966 9700 Fax: +2711 966 9726

Cape TownP.O 1417 Parow 7499Tel: +2721 386 8766Fax: +2721 386 8961

Pine TownP.O. Box 557, Pinetown, 3600Tel: +2731 705 3390Fax: +2731 705 3399

Port ElizabethPO Box 2140 North End, Port Elizabeth, 6056Tel: +2741 484 6240Fax: +2741 484 1836

East LondonPO Box 1703 East London, 5200Tel: +2743 736 3008Fax: +2743 736 3602

NelspruitP.O. Box 30041, Steiltes, Nelspruit 1200Tel: +2713 752 6292Fax: +2713 752 6233

PretoriaPO Box 5597, Pretoria, 0001Tel: +2712 379 6132Fax: +2712 379 6131

M illtrans is one of South Africa’s container and freight transport industry’s leading competitors.

Established in 1997, the company has branches in East London, Port Elizabeth, and Cape Town and a fl eet of 52 trucks and 101 trailers.

This, in the words of Jansje Strijdom, HR Administrator, makes it “the right company to deal with any freight transport requirement you have”.

“We give customers our best whether transporting a one ton or 100 tons,” she says.

“We have the knowledge and experience to handle a number of needs including abnormal loads and bonded cartage”

What makes Milltrans different is that it treats every load the same and is commitment to service, she says.

“That certainly makes us stand out,” Strijdon explains. “If something is urgent, we deal with it urgently. We also make abnormal loads, normal and even offer the option of obtaining permits for you. We will listen to customers and develop


Milltrans is a transport and logistics company with branches in Port Elizabeth, cape town and East London. Jansje Strijdom tells South Africa Magazine more.By Ian Armitage

Q UALi T Y n E v E r c o M P r o M I S I n G

solutions. We want to make it as easy as possible for customers to put their load on us.”

This fits in well with the company’s mission statement - to “offer the best possible service at the best price while not compromising quality, ensuring that loads are received on time and in good order”.

“I think we have a better follow-up service and better quality of service than anyone

else,” Strijdom continues. “That is something that we concentrate on; we want to offer a higher level of service than most transport companies.

“We have the quality, excellent follow-up service and superb pricing,” she says.

The result is that Milltrans has performed well, even during the downturn.

“In the last 12 months we have continued to grow, even with the downturn,” Strijdon explains. “We did slow down a little bit because of that, but in the past year it has picked up – so we have continued to grow all the way.

“We are looking to expand in Johannesburg at the moment

Milltrans FEAturE


We give customers our best whether

transporting a one ton or

100 tons

and that process will take time. Basically, we want to open a branch there because we do a lot of loads from Johannesburg and it would be very convenient for us if we had our own premises there.

“We are also looking to expand the fleets at each of our current branches so we can handle more cargo and to do more specialisation when it comes to abnormal loads.”

This is all a move to improve competitiveness, she says.

“Right now the main priority would be to expand our Cape Town branch, brining it inline with our Port Elizabeth and East London operations. Then after that it would be to get the Johannesburg branch going.”

Johannesburg is a strategically important city and has been labelled the ‘gateway to Africa’, enabling access to a number of markets in the world’s second largest continent, which contains 30 percent of the globe’s mineral reserves, and one billion people.

Despite that, Strijdom says there are no plans to increase cross-border logistics.

“It is expensive, while border crossings are slow because of the poor port facilities, railways and highways,” says Strijdon. “Now we do we sometimes do cross-border loads but they are on special request; mainly our loads are in SA because there are a number of complications when it comes to taking loads across the border.”

Fuel costs and skills development are increasing logistics costs, she adds.

“We always try to put contingency plans in place. But the biggest challenge in SA is the continual increase in the fuel price. I think that is the biggest challenge for any transporter, as well as changes in regulatory environment.

“Indeed, companies are increasingly citing fuel among the prime challenges and are adapting to higher fuel levies and other operational costs.

“In South Africa, fuel costs are twice as high for logistics as they are in any other country.”

Driving costs down will be a significant challenge, she says.

“And also, skills development is a significant challenge for the logistics industry in the region. The growing lack of skills not only impedes development but also has a significant cost attached to it.”

Milltrans currently employs 110 staff.


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Milltrans FEAturE

“This will obviously grow when Johannesburg is up and running,” says Strijdom. “This is, regardless of the challenges, an exciting time.

“The first step for opening Johannesburg would be to find the right person to run that branch because each branch we have is run by one of the family members and currently we’ve run out of family members,” she adds. “We don’t have one for Johannesburg so we are looking for the right type of person.”

The roots of Milltrans can be traced back to 1990, when JJ Stapelberg started a small transport company by the name of J+F Vervoer. Starting small and transporting mainly maize in the Eastern Cape, the first expansion of the idea took

place in 1997 with two additional trucks added to the fleet. The company website elaborates: “This was the start of transporting scrap and containers. With the coming of the new millennium, the company changed into a CC and given the name of Milltrans (short for Millennium Transport). The original head office of East London has grown over time to include offices in Port Elizabeth started 2002, and Cape Town in 2005. Milltrans continues to go from strength to strength with each expansion fuelled by the same passion of providing the best customer service possible.”

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

We have the quality, excellent follow-up service

and superb pricing

De Beers, London