SA Mag - Issue 11

PEOPLE CULTURE TRAVEL PROPERTY BUSINESS WINE SPORT ENTERTAINMENT

Rhino conservationWith rhino poaching on the rise, Dr. Joseph Okori talks about the fight against this illegal trade.

Gearhouse South AfricaGearhouse SA has reached a dominant market position under leadership of Ofer Lapid.

Prasa CresEffective public transport has positive spin-offs for the economy.

Lancet LaboratoriesOne of South Africa’s oldest and most respected private pathology laboratories.

ISSUE 11 R40.00

KFC set to grow African footprint says General Manager of the brand’s African operations, Keith Warren.

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3www.southafricamag.com

InvestIng In AfrIcA: Why the contInent Is Worth explorIngAfrica may seem an unlikely investment opportunity, but with its markets growing fast, the continent looks increasingly attractive.

Africa is being democratified and good governance and good governments have been installed.

One of a number of companies looking to grow off the back of this is KFC. Keith Warren, general manager of KFC’s African operations, who is doubles up as Managing Director of Yum! Restaurants International, says that Yum! is well aware of the “African opportunity” and recently outlined plans to expand its KFC footprint in Africa from its current level of 655 restaurants to 2,100 a decade from now.

On page 22, he tells South Africa Magazine that “Africa has vast potential” and outlines the company’s plans, goals and objectives.

This month, we also look at the worrying rise in rhino poaching, which has reached an all-time high in South Africa. Deaths averaged nearly one rhino per day and a total of 333 rhinos were illegally killed in 2010, including 10 critically endangered black rhinos.

Already this year 23 white and two black rhinos have been lost.

Enjoy the magazine!

Ian Armitage Editor

edItorIAl editor – Ian ArmitageActing editor – Susan Miller editorial assistant - Inger Smithsub editors –Jahn Vannisselroy Janine Kelso Tom Sturrock Alison Grinter Writers –Colin ChineryJane Bordenave

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Accountsfinancial controller - Nick Crampton

productIon & desIgnMagazine design – Optic Juiceproduction manager - Jon Cooke

dIgItAl & Ithead of digital marketing & development – Syed Ahmad

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www.southafricamag.com

22

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68 88 100

54 1064 www.southafricamag.com

06 nEWSAll the latest business

news from South Africa.

10 CuLturE RhinoconservationWith rhino poaching on an upward swing, Dr. Joseph Okori talks to South Africa Magazine about the fight against this illegal tradeand what is behind the worrying increase.

14 SupEr 15 SuperRugby

ReturnsWith the Super 15 in full swing, former Springbok prop Cobus Visagie gives his verdict on how the South African franchises will do.

18 BuSInESS StandardBankTerence Sibiya, Corporate & Investment Banking Director at Standard Bank, talks to Ian Armitageabout how the bank is helping to build the “Africa of tomorrow”.

22 KFC

32 ACSA

48 BOArDMAn BrO’S(pty) LtD

54 DhL SOuth AFrICA

60 hyprOp

68 ShELL SOuth AFrICA

82 LAnCEt LABOrAtOrIES

88 StAALMEEStEr

92 prASA CrES

96 rAKO LABELS

100 rOBErt BOSCh SOuth AFrICA

106 GEArhOuSE

rEG

uLA

rS

FEAtur

ES


Contents

PEOPLE CULTURE TRAVEL PROPERTY BUSINESS WINE SPORT ENTERTAINMENT

Rhino conservation

With rhino poaching on the rise,

Dr. Joseph Okori talks about the

fight against this illegal trade.

Gearhouse South Africa

Gearhouse SA has reached a

dominant market position under

leadership of Ofer Lapid.

Prasa CresEffective public transport

has positive spin-offs for

the economy.

Lancet Laboratories

One of South Africa’s oldest

and most respected private

pathology laboratories.

ISSUE 11 R40.00

KFC set to grow African

footprint says General

Manager of the brand’s

African operations,

Keith Warren.

Finger lickin’ good

6 www.southafricamag.com

All the latest news from South AfricaBusiness

Mining ChaMber denies Coal supply probleMsSouth Africa does not have a coal supply or quality problem, despite Eskom saying it does, the Chamber of Mines has said.

“There is no coal supply or quality crisis,” the chamber’s chief executive Bheki Sibiya said in a statement.

Eskom’s chief commercial officer Dan Marokane told a coal conference in Cape Town that the security of coal supplies over the long term was a worry.

The power utility reportedly blamed the coal mining industry for supplying poor quality coal, which affected its electricity supply capacity, Sibiya said.

Eskom said the coal mining industry was diverting poorer quality coals, traditionally provided to Eskom, to the so-called lucrative export markets.

However, Sibiya argued the average quality of coal received by Eskom did not appear to have changed significantly over the last decade.

Only two power stations were known to have been affected by coal quality problems, and there had since been agreements between the mining companies and Eskom to resolve the quality issues, he said.

Sibiya warned that current Eskom problems should not be confused with the 2008 electricity crisis and denied that South African coal miners were diverting coal suitable for Eskom to exports.

The chamber was not aware of any future coal supply shortages threatening Eskom.

neotel appoints new CeoNeotel - South Africa’s first converged telecommunications network operator – has announced that it has appointed Sunil Joshni as the company’s new managing director and CEO.

Joshni will take up his position at the company on April 1 replacing Ajay Pandey who spent five years with Neotel.

Non-executive chairman N Srinath said: “Sunil brings with him extensive experience in the global enterprise segment as well as expertise in global managed and network services.

“He is strongly positioned to take Neotel forward along with the changing needs of the market, as enterprise customers shift their focus more towards managed services, in line with global trends.”


All the latest news from South Africa

eMployers warned to “plan” for 2011 publiC holidaysEmployers have been warned to plan carefully for the public holidays in 2011 to avoid a “costly loss of productivity”.

“There will be some additions to the usual public holidays in 2011 thanks to the Monday rule and some tempting long weekends that only require one day’s leave,” Faan Coetzee, a labour law specialist at the law firm Cliffe Dekker Hofmeyr warned.

“If employers don’t plan in advance, they might suffer a costly loss of productivity, which could have a snowball effect on the economy.”

Public holidays on May 1 and December 25 both fall on a Sunday. In terms of the Public Holidays Act, Monday 2 May will become an additional public holiday.

“Having two days away from work for one public holiday

impacts on working arrangements and shifts and this needs to be considered in advance by employers.

“The result is that collective agreements may govern public holidays, working arrangements and shifts.”

Coetzee said the courts had not as yet had an opportunity to consider what would happen when the day after a Sunday public holiday is also a public holiday.

Business

Sport

absa naMed new springbok sponsorAbsa Bank will be the new official sponsors of the Springboks, the SA Rugby Union (Saru) announced.

After nine years as an associate sponsor, the bank took over as the new official team sponsor from Sasol in a five-year deal, which also includes the Springbok Sevens team.

The deal is rumoured to be in excess of R50 million per year.

“It’s my very great pleasure to confirm one of rugby’s longest standing friends as our

new Springbok sponsor,” said Saru president Oregan Hoskins.

“In many ways this announcement completes the circle. For the past 25 years Absa – through their various incarnations –have supported the Currie Cup and shown a commitment and passion for the sport, which has few rivals among sponsors in any South African sports code.”

Although other major sponsors such as SA Breweries were mentioned in the run-up to this announcement, Saru CEO Jurie Roux said there was little hesitation in welcoming the bank on board.

“The deal was largely signed and sealed within a month of our beginning to seek a new sponsor, which is a tribute to Absa’s enthusiasm for rugby and the massive appeal of the Springboks,” said Roux.

LifestyleBusiness


Malawi row over whether new law bans fartingTwo of Malawi’s most senior judicial officials are arguing over whether a new bill includes a provision that outlaws breaking wind in public.

Justice Minister George Chaponda says the new bill would criminalise flatulence to promote “public decency”.

“Just go to the toilet when you feel like farting,” he told local radio.

However, he was contradicted by Solicitor General Anthony Kamanga, who says the reference to “fouling the air” means pollution.

“How any reasonable or sensible person can construe the provision to criminalising farting in public is beyond me,” he said.

The Local Courts Bill, to be introduced during February reads: “Any person who vitiates the atmosphere in any place so as to make it noxious to the public to the health of persons in general dwelling or carrying on business in the neighbourhood or passing along a public way shall be guilty of a misdemeanour.”

retail sales up 8.3 perCent

Retail trade sales increased by 8.3 percent year-on-year in December, compared with a revised 8.0 percent increase in November, Statistics SA has said.

The agency said retail sales grew by 7.7 percent in the fourth quarter last year, compared with the same period a year ago.

The highest annual growth rate was recorded for retailers in pharmaceutical and medical goods, cosmetics and toiletries (25.9 percent), followed by retailers in household furniture, appliances and equipment (11.5 percent), all other retailers (9.1 percent) and general dealers (9.0 percent).

Food

nestle sa injeCts r505M into loCal eConoMyNestle South Africa has announced that it will invest R505 million into the construction of two new factories. It also announced its recent acquisition of a soya processing company in Potchefstroom.

These investments will create 350 permanent jobs.

“Nestle is proud to make this announcement as it demonstrates the company’s ongoing commitment to

investment in Africa,” said Sullivan O’Carroll, Managing Director of Nestle South Africa.

Nestle is investing R244 million into the construction of a 16,000 square metre factory for the production of Milo and Cheerio cereals which are currently being imported. A further R155 million will be invested into the construction of another factory in Babelegi for the production of Maggi products.

Finance:The first initial public offering in Rwanda, the sale of a 25 percent stake in the country’s brewery Bralirwa, has been successfully completed. The IPO raised 29.5 million dollars and was nearly three times oversubscribed.

Sport: South Africa coach Pitso Mosimane dropped troubled World Cup stars Katlego Mphela and Teko Modise for Bafana Bafana’s friendly against Kenya in Rustenburg on 9 February. Teko Modise, MacBeth Sibaya and Katlego Mphela, were all axed because of inactivity at club level. Kagisho Dikgacoi was spared despite his lack of competitive action for Fulham. “His experience is valuable, and there is a credibility and integrity to him,” said Mosimane.

entertainment: Kings Of Leon fans will have to wait until November to watch the foursome live in concert, following a postponement of their Johannesburg and Cape Town concerts scheduled for March. The postponement, announced by organisers Big Concerts, was to allow drummer Nathan Followill time to recover from surgery for a torn right labrum and bicep.

HealtHcare: The health department is “changing its approach” from waiting for TB patients to come to hospitals and clinics, to going out and finding them. “Our performance up to now has been fairly passive... We used to sit back and wait for people to come in, this is not how you can actually deal with a problem like TB,” David Mametja from the health department’s TB control and management unit said. “We want to move beyond clinics and hospitals and start looking for TB in the households.”


Money

jse to get new, faster trading systeMThe Johannesburg Stock Exchange (JSE) is getting a new trading system that will make equity market transactions 400 times faster.

The JSE plans to move its equity market trading activity -- the buying and selling of company shares -- onto a system called Millennium Exchange.

The new system would operate from Johannesburg, instead of London where it is currently based.

There had been a “handful” of incidents where the JSE had to stop trading, due to problems with “international connectivity”.

“By moving the engine to Johannesburg, we eliminate this problem and are able to offer our clients improved service availability and stability,” JSE chief operating officer and head of the equity market Leanne Parsons said.

The system was expected to increase the equity volumes traded on the JSE and therefore liquidity.

“In our experience, whenever we take a step forward with our trading technology, trading volumes also follow,” said Parsons.

“If we want to remain a world-class and relevant exchange in a highly competitive industry, we must remain abreast of technological advances.”

Millennium Exchange is the “flagship product” of MillenniumIT, which creates technology solutions for capital markets, has headquarters in Colombo, Sri Lanka, and is a wholly-owned subsidiary of the London Stock Exchange Group.

newsinbrief

10

With rhino poaching on an upward swing, Dr. Joseph Okori talks to South Africa Magazine about the fight against this

illegal trade and what is behind the worrying increase.By Ian Armitage

www.southafricamag.com

Poaching ON THE RISE IN SOUTH AFRICA

Rhino

Rhino poaching in South Africa has reached an all-time high. Deaths averaged nearly one rhino per day and a total of 333 rhinos were illegally killed in 2010, including 10 critically endangered black rhinos.

According to Dr. Joseph Okori, WWF African Rhino Programme Manager, the yearly total is the highest ever experienced in South Africa and nearly triple 2009 when 122 rhinos were killed in the country.

An additional 23 white and two black rhinos have been lost to poaching since the New Year.

“The current wave of poaching is being committed by sophisticated criminal networks using helicopters, night-vision equipment, veterinary tranquilisers and silencers to kill rhinos at night while attempting to avoid law enforcement patrols,” Dr. Okori explains. “They are also using media, like the internet, to

build stronger demand and improve communication.

“The criminal syndicates operating in South Africa

are highly organised and use advanced technologies. They are very well coordinated and what is alarming is that we are still seeing the involvement of local professionals, vets in particular, as well as game ranchers and rangers, in this trade.

“What is behind the rise?

The incentive, we believe, is money. With the global recession tourism is affected, game owners and rangers are struggling and there is greater enticement for some of them to get involved in the illegal trade.”

The increased poaching trend is extremely worrying. If it is not stopped, the rhino conservation wins of the last decade will be in jeopardy, Dr Okari says.

Rhino poaching across Africa has risen sharply in the past few years, threatening to reverse hard-won population increases achieved by conservation authorities during the 20th century.

rhino conservation CULTURE


The increased poaching trend

is extremely worrying. If it is not stopped, the rhino

conservation wins of the last

decade will be in jeopardy

One problem is that conviction rates remain relatively low.

“An increase in convictions, backed up by tougher penalties is certainly needed,” Dr. Okori says. “The South African government needs to demonstrate its continuing commitment to protecting rhino but it isn’t just on their shoulders. There is need for similar action in consumer states too.

“We are also pursuing other diplomatic channels with partners like TRAFFIC in our fight against the illegal poaching and trade and the abuses of the current system. Through them we have established coordination links between officials in South Africa and Asia, which has the highest demand for rhino horn. It is vital that we raise public awareness of the illegal trade in rhino horn. WWF believes our international presence in more than 100 countries, including those where much of the horn is shipped to, will help.

“We have partnerships with governments, NGOs and people who are conservation-aware,” he continues. “With those who are not yet aware, we work to create that awareness. We aim to invest donor funds securely and wisely in projects, which will make rhino populations across Africa more productive and viable.

“We are tackling the entire supply chain and specifically targeting those at the top of the syndicates. Only a concerted international enforcement pincer movement, at both ends of the supply and demand chain, can reverse the trend.”

At the root of the rhino crisis is the continued use of rhino horn in traditional Chinese medicine.

Illegal rhino horn is highly sought after for use in traditional medicines in China and Vietnam, despite the fact that rhino horn has been extensively analysed and contains no proven medicinal properties.

“Research conducted by the wildlife trade monitoring network TRAFFIC revealed that most rhino horns leaving Southern Africa

are being smuggled to Vietnam and probably China,” says Dr. Okori.

In Vietnam, rhino horn demand is on the increase. It is already huge in China.

“Rhino horn has long been prized as an ingredient in traditional Asian medicine. It has also been claimed recently that rhino horn possesses cancer-curing properties, despite there being no medical evidence to support that.”

South Africa, he says, is home to approximately 21,000 rhinos, more than any other country in the world, and despite the worrying rise in poaching, there have been fantastic steps forward in the conservation of this wonderful beast.


“We have seen African white rhino populations rise from less than 100 in the late 19th century to more than 20,000 today and that is a phenomenal conservation success story that can be attributed to the combined efforts of all those involved,” says Dr. Okori. “However, consumers of rhino horn across Asia are now seriously compromising this achievement by motivating groups to kill rhinos.

“In order to halt this - and I must stress how important this is - substantial resources need to go into law enforcement and awareness, both in Africa and in Asian consumer countries

where all trade in rhino horn is illegal.” In South Africa, WWF’s Black Rhino Range

Expansion Project aims to increase the overall numbers of black rhino by making available additional breeding lands. This is done by forming partnerships with owners of large areas of natural black rhino habitat. So far, 98 black rhino have been “translocated” to new range lands and at least 26 calves have been born on project sites.

“It’s one thing to know about rhinos, another to have them and look after them and successfully breed them,” says Dr. Okori.

“WWF has adopted a more strategic and proactive approach to rhino conservation and continues to make progress. Black rhino are a solitary animal and we have about 1,678 in South Africa. Our breeding and expansion programme is recognised as one of the best around.”

Indeed, 12 percent of all the black rhino in KZN have come as a result of the WWF expansion programmes. “We have not only increased numbers of rhino, but also increased the area of land available to them,” Dr. Okori explains.

Rhinos constitute one of the much-revered “Big 5” of African wildlife tourism, including elephants, lions, leopards and Cape buffalo. For more than

45 years, WWF has been involved in rhino conservation and management in Africa. Its African Rhino Programme has continued to provide a coordinated approach for rhino conservation since its introduction in 1997 and with people like Dr. Okori (who has had his arm broken by a buffalo and been chased by leopards) determined to make a difference, the poachers had better watch out!

For more details visit wwf.panda.org. EnD


Substantial resources need

to go into law enforcement, both in Africa and in Asian consumer

countries where all trade in rhino horn is illegal

rhino conservation CULTURE


With the Super 15 in full swing, former Springbok prop Cobus Visagie gives his verdict

on how the South African franchises will do.By Pierre de Villiers/Ian Armitage

RugbyR E T U R N S

SuPeR


Rejoice, the Super 15 is finally underway and we can now look forward to six months of high-level rugby. The 2010 final between the

Bulls and the Stormers played at the heart of Soweto was a moment of grace and emotion, which the whole country will long remember.

There are five South African representatives in the competition this time, extended from last year’s format, including the Bulls, defending champions, who hope to retain their crown.

The Bulls are a popular choice and have received widespread backing as they look to achieve an historic pass of three: can the winners in 2009 and 2010 join the Crusaders, the only ones to have won three consecutive trophies?

Cobus Visagie, the former Springbok prop, gives his prediction of how the South African franchises will do.

BUllSAs always the Bulls will be a major force and will be really boosted by the return of Fourie du Preez. They also have great depth thanks to utility players like Francois Hougaard. A concern for the reigning champs will be the fitness of the influential Victor Matfield, who was suffering with a neck injury in the lead-up to the competition. One of the biggest mistakes of 2010 was that Matfield played too much rugby and there is a concern that it could catch up with him. The great lock has to be managed properly during the Super 15. If he misses a few games it won’t be great for the Bulls but might really pay off for the Springboks.

STORMERSI think there’s something really special happening at the Stormers and you can see that when it comes to their defence. In the past the Stormers lost tight games in the final minutes but they are now able to pull those

Super rugby returns SUPER 15

Rugby

matches through. You saw that when they beat the Sharks in a recent warm-up game. The fact that they can now win close games in the last minutes is a sign of a team with good, sound underbelly. It bodes really well for the Super 15.

ShARkSA lot of the success at the Sharks will depend on the wisdom of coach John Plumtree and how he sorts out his combinations. Where to play John Smit will be his main selection headache. I understand the Sharks are considering playing him in all the positions in the front row which I think is a mistake and places John in a difficult position, especially since he has lost a lot of weight to prepare himself to be hooker. I do realise that Plumtree is in a tough position because

during the autumn internationals Bismarck du Plessis was the best international hooker so it’s tough not to play him. There is also a case to be made for keeping the Bok frontrow together especially since Beast Mtawarira was probably the best loose head during the autumn internationals. I don’t think Plumtree has a back-up tight head so he will need to keep Jannie du Plessis on board as well. Selection is going to be tough for the Sharks and I would rather not be in the coach’s position!

lIONSOne of the biggest talking appoints is whether the Lions can buy their way to success by bringing in a lot of talented players. If you asked me this before I came to the UK I would have said it is not possible but players


have become professional in every sense of the word so their motivation is around personal achievement and understanding the commercial side of building a brand for yourself and a company. In that respect I do think you can buy a good team. The important thing for the Lions will be whether they have good leadership, whether they have a captain and coach that can bring a team together and create a side with the right values. I think John Mitchell is a very shrewd coach and that they will do better than people think this season.

ChEETAhSThe Cheetahs is a team that will really benefit from the new conference system with loads of local derbies. They are a real bogey team for some of the local sides and I can see them surprising a few teams. They will need to beat local opposition to build up the confidence that will be crucial if they want to achieve their first away victory.

FINAl PREDICTION: I think the Stormers will beat the Crusaders in the final. EnD

Super rugby returns SUPER 15



B U I L D I N G T H E A F R I C A O F

Terence Sibiya, Corporate & Investment Banking Director at

Standard Bank, talks to Ian Armitage about how the bank is helping to build

the “Africa of tomorrow”.

The African decade is upon us. As China continues to boom we will see the Chinese offer more large-scale infrastructure development

to African governments in return for natural resources and farmland to support it’s vast population. The Americans and Europe also want in.

In turn, African countries are challenging old perceptions of corruption and violence through practicing better governance. Ghana is one of Africa’s strongest democracies and very much the leader in this respect. African countries will continue to veer in favour of increased prosperity and the picture continues to be replacement of Western aid for Africa by Eastern trade with Africa.

This represents an opportunity for South Africa, which has already inked a series of trade and energy deals with China.

Standard Bank BUSINESS


“We are committed to making a difference to financial services in South Africa and the other select emerging markets,” says Terence Sibiya, Corporate & Investment Banking Director at Standard Bank, speaking to South Africa Magazine about the bank’s plans for the continent and how it aims to play a role in all this. Ghana, he says, is expected to grow at an amazing 20 percent rate in 2011, while strong growth in emerging markets is driving demand for infrastructure.

“The challenge for financial institutions is to finance these projects competitively and sustainably,” Sibiya explains. “It is all about building the Africa of tomorrow. With the 2010 World Cup in South Africa and the huge infrastructure spend that prompted we have had a great opportunity to perfect funding models that can unlock the infrastructure bottleneck that exists in the pan-African

space. Standard Bank Group is one of the big four full-service South African banks and we have a wide representation which spans 18 African countries and 21 countries outside of Africa with an emerging markets focus. We are in a great position.”

Sibiya was previously the director and head of global foreign exchange sales at Standard Bank of SA and has been with the banking institution since 2005, when he assumed the position of senior manager, corporate finance. The following year he became director and head, strategic equity investments. He has also worked for US-based consultancy firm Aurora Associates International as a project manager and for Total SA as head of strategy and services.

“We, as Standard Bank, do a lot to support infrastructure development and it is a major part of our future focus,” he continues. “To give you an example, we have been strong supporters of the Airports Company of South Africa’s (ACSA) vision of providing the gateway to Africa. ACSA embarked on a drive to deliver efficient capacity expansion to match forecast passenger growth and meet the traffic demands for the 2010 World Cup and beyond. To deliver on this goal, it required finance and we are proud to have been able to partner with ACSA in two financial deals. In 2007, we were the joint lead manager in a bond issue – worth R2 billion - to raise capital for airport expansion. That same year, we were joint arranger of a R12 billion domestic medium-term note programme. The capital was used to upgrade two major international airports - OR Tambo and Cape Town - and construct the King Shaka International airport in KwaZulu Natal.”

Airports, Sibiya says, are the gateways to countries. They play a vital role in forming travellers’ perceptions and can make or break a travelling experience. For that reason they are appealing investments. “ACSA has done an excellent job in South Africa,” he explains. “It has come a long way since 1993, when it


was formed and is now a shining example of a successful State Owned Entity. Others can learn a lot from this example.”

ACSA has proved that Africa is catching up with the rest of the world and with more infrastructure projects on the cards across Africa, Standard Bank aims to continue to help to “Build the Africa of tomorrow”.

“Why you should talk to Standard Bank?” Sibiya says. “It is a good question. For one, we have participated in numerous regionally important infrastructure projects on the African continent. We have in-depth knowledge and we customise innovative financing solutions to meet our clients’ individual requirements. We also have extensive experience in arranging export credit for projects involving cross-border investments, specialising in customised political and market risk structuring involving single or multi-sourced export finance, political risk insurance and development finance products. Most significantly, we have established a track record in advising on major projects in Africa.

“Infrastructure will help build the Africa of tomorrow; Standard Bank is committed to laying a foundation from

which we can all build and develop Africa,” Sibiya concludes. “There are lots of opportunities. Kenya is a great one. The government has hastened the expansion of airports and we have the experience to help with that. We are also looking at projects in Nigeria and the DRC, with a proposed new international hub in Kinshasa particularly appealing. Ghana, too, is full of opportunity, and there is huge opportunity in Angola as well.”

With the help of Standard Bank, Africa, it seems, is set to boom.

To learn more visit www.standardbank.co.za EnD

Standard Bank BUSINESS



KFCS E T T O G R O W A F R I C A N

A frica has been the next big thing for a long time. Sceptics say it will continue to be just that for many years to come.

However investment in Africa is growing. And with African markets booming, it looks like an increasingly attractive investment option.

“Africa is being democratified – Ghana is a great example – and good governance and good governments have been installed. Africa is now beginning to boom,” says Keith Warren, general manager of KFC’s African operations. “Chicken on the bone is the protein of choice in Africa,” the native South African, who doubles up as Managing Director Of Yum! Restaurants International, adds.

Yum! is well aware of the “African opportunity” and recently outlined plans to expand its KFC footprint in Africa from its current level of 655 restaurants to 2,100 a decade from now.

“Africa has vast potential,” says Warren.He stressed that the improved political

stability of various African governments, the region’s vast population and a growing middle class - as well as the fact that chicken is a dietary staple in Africa – has led Yum! to set its sights on the continent.

“The vast majority of KFC’s restaurants in Africa are in South Africa, but we are being more aggressive in opening new restaurants across the continent,” says Warren. “We currently operate in 10 African countries: South Africa, Nigeria, Lesotho, Namibia, Botswana, Swaziland, Mozambique, Egypt, Tunisia and Morocco.”

The first KFC in South Africa opened in 1971 and Yum! is accelerating development into Nigeria as well as launching into Ghana, Zambia, Malawi, Kenya, Tanzania, Angola, Senegal, Cameroon and the Democratic Republic of Congo, he explains. “More and more businesses are now moving into emerging markets as growth

KFC FEATURE


Keith Warren, General Manager of KFC’s Africa operations, and

Managing Director Of Yum! Restaurants International, talks to Ian Armitage about KFC’s success

in South Africa, expansion plans and how the company is using the brand

to “improve the lives of others”.

in developed countries has slowed.” Warren points to examples like Wal-Mart

Stores Inc., which recently offered to buy 51 percent of South African retail giant Massmart Holdings Ltd., as evidence to support his claims. “Africa is attractive for Western brands,” he says. “People are now focusing on the emerging world and a lot of companies, especially Chinese ones, have invested in Africa.”

KFC has strong brand awareness in Africa. Of the roughly one billion people in Africa, Warren estimates it currently reaches 180 million.

The menus at African KFCs are similar to those in more developed markets, with the main difference being that there are more options for chicken pieces.

Warren says: “Africans stay away from processed foods. They want chicken on the bone.”

The great thing about the chain, he adds, is that it appeals to wealthier Africans as well as to people living on lower income levels.

The company sells four chicken wings for $1.20 and two chicken pieces with a portion of fries for $2.80.

“The combination of KFC being a global brand and it’s strength in Southern Africa has created a brand that is highly aspirational across Africa. People will save up to buy the $2.80 meal, even if only once every three months,” Warren says.

KFC sells chicken more cheaply in South Africa than most parts of the world because local labour costs are lower, he adds. “We appeal to wealthier Africans as well as to people living at a more modest income level,” Warren says. Yum! has 44 percent market share in South Africa and there are more than 600 KFCs in the country. It is South Africa’s biggest quick service restaurant brand.

It is hugely successful in South Africa and many of KFC’s staff training and development programmes, its environmental focus and promotion of


KFC FEATURE

huhtAMAKIWith over 90 years of history, huhtamaki has a presence in over 30 countries and employs over 12,000 people worldwide. It strives to consistently provide unmatched expertise, operational excellence and innovative thinking - to help customers to sell more.

huhtamaki is eco-savvy, concentrating on environmentally friendly raw materials and packaging technologies. products are manufactured with the aim to protect natural resources, optimize process efficiency and to apply the best available techniques to reduce solid waste generation, effluent discharges and emissions.

huhtamaki focuses on packaging for the Food Service Industry, providing sustainably developed packaging – representing some of the world’s most renowned brands, such as KFC.

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healthier diets, and its social responsibility initiatives, are the first of its kind in the country.

“The KFC brand is very strong,” Warren stresses. “We are seeing significant growth.

“Africa over the next 10 to 20 years will have massive potential.”

KFC plans to invest about $500 million in its African expansion. But, the expansion will present plenty of challenges. In some countries, KFC imports its chicken from South Africa and Brazil. But there is still “a lot of protectionism in Africa,” Warren stresses. “In Nigeria and East Africa, imports of chicken are banned,” he says.

In those places, KFC has been working with local suppliers to ensure the quality and safety of their chicken meets the company’s high specifications.


KFC FEATURE

All said, its growth plan is ambitious. “We are planning to open 20 KFC outlets in Nigeria in 2011,” says Warren. “We’ve got seven stores there now and we are going to build 20 next year.”

Yum! forecasts that it will have 300 KFC restaurants in Nigeria by 2020.

“We opened our first Nigerian KFC restaurant in December 2009,” Warren says. “Why Nigeria? Well, 160 million people, eating chicken on the bone, as their primary protein, has to be a good thing.

“Of course the poor infrastructure and bureaucracy as well as finding good partners are challenges.”

KFC in Nigeria is currently a joint venture between an existing Indian franchisee of the company (Devyani International Limited (DIL)) and a local Nigerian.

RAIB000326_KFC Africa_ad_3.indd 1 2011/02/16 11:40 AM

“Nigeria is just one of many countries,” Warren says.

KFC’s expansion can have positive effects for local industry players, he adds, citing the example of Rainbow Chicken in South Africa. “They’ve grown as we have grown in South Africa. They’ve built their business on KFC and we account for about 25 percent of their business.”

Growth will also be achieved in South Africa, where KFC is planning to open some 200 new restaurants in the next five years.

“South Africa enjoys one of the highest levels of penetration per population anywhere in the world,” Warren says. “If we look at the US, KFC has a penetration of 17 restaurants per million of the consuming population. Our penetration in South Africa is 36 restaurants per million of the consuming population. That is largely driven by brand strength, but as I said earlier, it also comes down to chicken on the bone being a valued source of protein and the ‘finger licking good’ taste of KFC.”

KFC is committed to Africa. Its Add Hope campaign is proof of this. By adding just R2 to your meal, you can help KFC feed vulnerable people, typically children, and make a real difference.

“In 2007, KFC decided to put hope on its menu and made a long-term commitment to fight hunger by focusing on the most vulnerable members of our communities,” says Warren.

Add Hope is an independent, trusted organisation. KFC donates all the resources and marketing, so that every cent it raises goes towards feeding hungry children in South Africa.

“Add Hope has driven greater awareness and much needed continued support for the global problem of starvation,” Warren continues. “We have a number of grassroots, national and high-profile initiatives, which give us an opportunity to engage with our local communities, often with the enthusiastic involvement of our staff.

“Add Hope aims to do just that: we want to Add Hope to people and to communities.


KFC FEATURE

hErMES Since 1977 hermes has produced high quality ice cream cones and sweets & soft serve ice cream powders. Constantly introducing new technologies and techniques into its manufacturing process makes hermes products particularly profitable in terms of quality, innovation and cost. taste, crispiness and look has for years made hermes the finest on the market. Every hermes product is made from the finest quality materials. It pays close attention to every detail. Even in the fast-paced automated world of today, hermes relies on personal attention to ensure quality and customer satisfaction.

hermes’ reputation for quality, reliability and service has been achieved through excess of 34 years of experience within the ice cream cone industry and is confirmed by its many customers.

hermes is a proud supplier of ice cream cones to KFC and we wish them every success in their endeavours.

HERMES CONE & SNACK MANUFACTURERS93 Rustenburg Road, Krugersdorp West, 1739, Gauteng, South Africa

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“We want to make a real difference in the lives of ordinary South Africans. This is a long-term commitment that we have undertaken as a brand. We are dedicated to raising funds at every possible opportunity and making a sustainable difference in the lives of the underprivileged.”

The KFC’s philosophies are adapted from the Yum! Dynasty Model, he says.

As well as Add Hope, KFC recently announced a new partnership with Cricket South Africa. The deal relates to mini-cricket, the entry point to the sport, and KFC has committed to a sponsorship programme of five years with the option of extending a further five years further down the line, Warren says.

“That’s right, KFC recently took over the reins of the mini-cricket programme,” he explains. “KFC is committed to cricket from the ground up.”

For more than two decades mini-cricket has been giving primary school children,


KFC FEATURE

Established over thirty years ago, Lufi l Packaging boasts a proud record as one

of South Africa’s leading manufacturers of printed and plain paper bags and associated

packaging products.

Our Products and FeaturesPaper Bags

Flat Bags | Boutique Bags | Bakery Bags | S.O. Bags | Sjoppers | Duplex Bags Charcoal Instantlite | Satchells | Potato Bags

OptionsPrinting | Plain | Printed | Material | Virgin | Recyclable | Compostable

Wrapper TissueGreaseproof or Resilio Serviettes (1 or 2 ply)

Environmentally-friendly paper packagingEstablished thirty years ago, Lufi l Packaging manufactures a comprehensive range of environmentally-friendly paper packaging solutions in South Africa.

The company supplies a diverse range of industries from industrial and government to healthcare and pharmaceutical. The largest sector, however, is fast food where Lufi l is a market leader.

All Lufi l’s products can be supplied plain or printed, with customer-specifi c sizing and construction.

Lufi l also uses resilio paper , which provides an economical solution to the duplex bag to eliminate leaking. Resilio has a high grease and moisture resistance and was specifi cally developed to resist high-in-fat food products.

The added advantage of resilio is that it offers grease resistance plus the benefi ts of paper, being that the porosity of the paper means the food will not sweat.

In addition to its own range of products, Lufi l is also the local agent for Rapid Action Packaging (RAP). A major player in the British packaging sector, RAP boasts a customer list that includes the most prominent UK-based retailers and fast food operators.

RAP specialises in the design and manufacture of innovative, cost effective and environmentally responsible packaging solutions and aims to maintain a leading edge in the market as a producer of designs that are ergonomic, economic, and environmentally responsible. Its wide range of packaging systems include fl exible food wraps, short-life and long-life carton sandwich wedges, fresh and long-life food trays and the Softpak fl ow wrapping lines.Made predominantly of paper they provide a greater surface area for branding which differentiates it from other traditional fi lm fl ow packs with labels applied.

©RICH PRODUCTS CORPORATION OF SOUTH AFRICA77 Earp Street, Ophirton, 2091PO Box 39286, Booysens, 2016, South Africa.Tel: 0860-0-RICHS | www.richs.com

Rich Products Corporation is known around the world as a pioneer in the frozen food

industry and a leading supplier and solutions provider to the food service, in-store bakery,

and retail marketplaces. Since 1945, the company’s history has been

marked by innovative breakthroughs, an unparalleled commitment to “Caring For Customers Like Only a Family Can™”.

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from all walks of life, the opportunity to experience the game of cricket, learning basic skills from batting to bowling and fielding in an entertaining environment.

“KFC Mini-Cricket is more than just about the game; it’s an opportunity to teach children valuable life lessons and social skills such as teamwork and discipline, while promoting a balanced and active lifestyle,” Warren says. “It is all about reinforcing the principle that we are part of the, or aspire to be part of the, fabric of daily life for every South African. That means being part of things like cricket and being part of things like encouraging a responsible and balanced lifestyle, particularly amongst the youth. Naturally when you have blokes like AB De Villiers that came through mini cricket in their day, it is also about developing the talent of the future South African cricket team.”

Somewhere in fast-food heaven, Colonel Harland Sanders is smiling. EnD


ACSA does not only provide airlines with world-class, secure infrastructure - it also promotes tourism, economic growth and job creation.

takeoff takeoff takeoff SA SEt FOr


ACSA FEATURE

Depending on which figures you believe, before the global economic downturn, the airline sector in Africa was expected

to grow 5-6 percent per year over a 20-year period. As the globe recovers from the downturn, things are picking up in the airline sector. The International Air Transport

Association (IATA) reported full-year 2010 demand statistics for international scheduled air traffic that showed an 8.2 percent increase in the passenger business and a 20.6 percent increase in freight. Demand growth outstripped capacity increases of 4.4 percent for passenger and 8.9 percent for cargo. Average passenger load factor for the year was 78.4 percent, which is a 2.7 percentage point improvement on 2009. The freight load factor saw a 5.2 percentage point improvement to 53.8 percent.

Compared to the pre-recession levels of early 2008, December air travel volumes were four percent higher. Airfreight was one percent higher than pre-

recession levels; however volumes have fallen five percent since the peak of the post-recession inventory re-stocking boom in early 2010.

“The world is moving again. After the biggest demand decline in the history of aviation in 2009, people started to travel and do business again in 2010. Airlines ended the year slightly ahead of early 2008 volumes, but with a pathetic 2.7 percent profit margin. The challenge is to turn the demand for mobility into sustainable profits,” said Giovanni Bisignani, IATA’s Director General and CEO.

African carriers experienced a sharp rebound of nearly 12.9 percent in 2010,

The year under review ended on a high note with the successful

completion of the major expansions

at OR Tambo and Cape Town

International Airports

although load factors remained well below the industry average, at 69.1 percent. Their year ended with December demand at 11.7 percent above previous year levels.

So there is obvious potential. Grabbing it with both hands is a little tougher.

Airports Company South Africa (ACSA) has been in existence since 1993 and has succeeded in transforming once fragmented assets into a world-class, profitable state-owned company that is – they proudly say - “run along commercial lines”.

Its vision is to provide a “gateway to Africa” and ACSA has just completed its most ambitious infrastructure capacity development programme ever. Five years ago, it embarked on an ambitious R17 billion programme, which would generally improve capacity and service offerings at its network of airports to match forecast passenger growth.

A new R2.2 billion Central Terminal Building at OR Tambo International Airport was one of the major investments. ACSA calls it “the final building block” in a complete redevelopment of the terminal precinct that was commenced more than 10 years ago. “The building finally brings all the domestic and international areas into one contiguous space, which greatly improves passenger experience and


ACSA FEATURE

StAnDArD BAnKStandard Bank Group supports the Airports Company of South Africa’s (ACSA) vision of providing the gateway to Africa and is proud to have been able to partner with ACSA in two financial deals.

In 2007, Standard Bank was the joint lead manager in a r2 billion bond issue to raise capital for airport expansion. that same year, Standard Bank was joint arranger of a r12 billion domestic medium-term note programme. the capital was used to upgrade two major international airports (Or tambo and Cape town) and construct the new King Shaka International airport in KZn.

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ACSA FEATURE


orientation,” ACSA says. “This flagship of OR Tambo International Airport is complemented with recently completed pier and apron developments that allow us to accommodate new generation large aircraft.”

The terminal precinct at Cape Town International Airport has also undergone a complete transformation. “By April 2010, the redeveloped airport boasted a common use central terminal with vastly improved retail and food and beverage offer, an additional 4,000 bays in a second parkade as well as a significantly improved road network,” ACSA says. “A first for this airport is the introduction of an elevated

drop-off kerb, which allows passengers to access the check-in hall with greatly improved ease and protection from the elements.”

Of course, we couldn’t mention ACSA without saying something about the new R6.8 billion King Shaka International Airport, which started operating last May, or indeed the work it has done in improving the

smaller airports in the airport network. “The successful move to the new airport is a huge accomplishment, not only for the airport community here, but the country at large. It makes all of us proud to stand here today and

The smaller airports in the

airport network are not neglected as they are seen as

an integral part of the overall aviation

network

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NetSpeed Technologies can help keep your network running smoothly. Please visit the NetSpeedwebsite for the case study with ACSA and for more information on NetSpeed.www.netspeedportal.co.za.

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ACSA FEATURE

report that the airport is running smoothly,” said the King Shaka International Airport’s general manager, Terence Delomoney, on the airport’s opening.

“The smaller airports in the airport network are not neglected as they are seen as an integral part of the overall aviation network,” ACSA says. “ACSA has 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.”

Airports and infrastructure growth play critical roles in the national economy. They plan a big part in President Zuma’s vision for South Africa. A recent survey by the University of Johannesburg showed that the economic impact of OR Tambo, Cape

Town and Durban international airports was significant, with a combined contribution towards GDP of R85 billion. Impressively, the three airports generated 33,700 direct, on-airport jobs and 227,600 indirect jobs.

Sunday 7 November 2010 marked one year since Airports Company South Africa, Cape Town International Airport opened its doors to the new central terminal building.

Since then, the airport has processed over seven million passengers and seen 43,222 aircraft departures.

The central terminal building’s consolidated Domestic and International check-in area was a first for the airport. Another first was the consolidated security screening point allowing the airport to derive “greater efficiencies”. Through the airport’s expansion programme other firsts included the elevated roadway,


STS Engineering a level 2 BEE rated company was established in1999 by a group of

professionals, specializing in mechanical and structural engineering projects with special emphasis on architectural and space frame

structures.

STS Engineering recently completed its work at the King Shaka International Airport and is currently constructing the Dube Square Canopy to be located in the precinct of the Dube Trade Port headquarters. The project consortium includes Civil and Structural Engineers, Mark Mallin and Henry Fagan of Henry Fagan & Partners and landscape architect Tanya De Villiers of CNdV.

Our specialised areas of business are as follows:• Project Management• Pipelines• Engineering Services• Steam, Water, Gas Lines• Mechanical Steelwork

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Sagren Naidoo, the company director can be contacted on:

Cell: 0837015907 Fax: 0866843602 Email: [email protected]

While we believe in spreading the love all year round, we’ve decided to show a little more of it this month. So, as well as our excellent service,look out for our great value ‘Red Hot Special’ rates. Think red over the month of love, and get ready to receive more than you expected. With Avis.

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ACSA FEATURE

transport plaza, parkade with 4,000 parking bays - double the size of the first one - and eight new air bridges for use by Domestic passengers.

With the new terminal also came a new automated baggage system which has already processed 2,972, 902 pieces of luggage!

The airport has just come through its peak season.

“The opening of the central terminal building last year was a proud moment for all airport employees, but it was also a proud moment for Cape Town. It brought

with it much needed additional capacity. It offers ample space, wonderful retail facilities and it’s functional. Many Capetonians heaved a sigh of relief when they moved through it for the first time,” said Deidre Hendricks, Communications Manager, Cape Town International Airport.

During the World Cup, Cape Town airport handled approximately 23,000 passengers per day.

The airport’s busiest day was 7 July, where just under 27,000 passengers were processed.

ACSA operates South Africa’s 10 principal airports, providing airlines with world-class, secure infrastructure.

“Our mission is to manage world-class airports for the benefit of all stakeholders,” ACSA says. “Our vision is to be a world-leading airport business.”

“Airports Company South Africa has a wonderful basket of world-class assets, and a high level of intellectual capital, through


The opening of the central terminal

building last year was a proud

moment for all airport employees, but it was also a

proud moment for Cape Town

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

Living with the ever present risk of security attacks by terrorists and extremists is just one of many challenges facing the aviation industry in the 21st century. G4S security personnel at airports receive high level training to satisfy the constantly changing aviation legislation whilst we strive to maintain an evolving range of new security technology.

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

Stylecraft’s extensive offi ce furniture range caters for all requirements; top executive; boardroom; reception; and clerical to computer environments. The ranges are complemented by numerous size options and accessories to give you fl exibility in layout and design when trying to keep uniformity and when catering for different sectors.

Stylecraft Offi ce Design is proud to be associated with ACSA on the completion of the new King Shaka International Airport.

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ACSA FEATURE


a competent Board and an enthusiastic management team that is instilling a fresh spirit of excitement. I am therefore confident in ACSA’s ability to optimally sweat these assets in future, in order to deliver a reasonable commercial return to our shareholders,” Sindi Zilwa, ACSA Chairman said in the company’s 2010 annual report.

“The year under review ended on a high note with the successful completion of the major expansions at OR Tambo and Cape Town International Airports, as well as the refurbishment and expansion of the smaller national airports and completion of the greenfield King Shaka International Airport… It has, however, been a demanding year with incredibly tight deadlines for infrastructure delivery, and I would like to express my profound gratitude to all ACSA management and staff, as well as key stakeholders and business partners,” added Monhla Hlahla,

IntELLEpArKIntellepark’s relationship with King Shaka International Airport began almost four years ago when we were appointed by the ILembe consortium and their Electronic services subcontractor thales Italy in cooperation with ALCAtEL Lucent in Durban.

the ASytEC product from Germany is Intellepark’s flagship pay on Foot system. Our system that was installed has been proven in the Overseas and South African markets as being reliable and accurate. A similar system has been installed at the Lanseria Airport and Frankfurt international airport, with Frankfurt being ASytEC’s largest pay on Foot site in the world.

the King Shaka International Airport is an extremely important installation for Intellepark, its Directors, management team and staff and we look forward to a long lasting relationship with the ACSA management team and their operational staff members.

Office number (011)394-5730 Cell 071 114 4244

ACSA FEATURE

Managing Director. “The African continent remains a critical market for ACSA to expand its services and grow traffic by ensuring easier travel within the continent. While Europe and North America remain attractive markets that require deepening, ACSA will also explore traffic growth opportunities by leveraging the South-South partnership between South Africa, Brazil, India and China,” she continued.

ACSA’s airports are undoubtedly some of the very best platforms to showcase Africa’s excellent craftwork to international visitors, she said, and ACSA is committed to uplifting the community.

ACSA views B-BBEE and the need to transform the South African economy seriously. It has set some rigorous targets for preferential procurement and enterprise development programmes amongst others.


FACT BOX

AIRPORT STATISTICS

CAPE TOwN INTERNATIONAlDeparting passengers 3,912,000Arriving air traffic movements 46,302Annual passenger handling capacity 14,000,000

DURBAN INTERNATIONAlDeparting passengers 2,208,000Arriving air traffic movements 26,454Annual passenger handling capacity 4,500,000

PORT ElIzABETh INTERNATIONAlDeparting passengers 676,000Arriving air traffic movements 39,169Annual passenger handling capacity 2,000,000

EAST lONDON AIRPORTDeparting passengers 337,000Arriving air traffic movements 17,930Annual passenger handling capacity 1,200,000

BlOEMFONTEIN INTERNATIONAlDeparting passengers 199,000Arriving air traffic movements 11,362Annual passenger handling capacity 600,000

GEORGE AIRPORTDeparting passengers 270,000Arriving air traffic movements 20,931Annual passenger handling capacity 900,000

UPINGTON INTERNATIONAlDeparting passengers 21,000Arriving air traffic movements 3,395Annual passenger handling capacity 100,000

kIMBERlEy AIRPORTDeparting passengers 66,000Arriving air traffic movements 5,980Annual passenger handling capacity 200,000

SOURCE: ACSA 2010 Annual Report

Windhoek Port ElizabethRichards BayWalvis Bay

Kimberley Kruger Mpumalanga (Nelspruit)

MaputoLubumbashi

Johannesburg GaboroneGeorgeHoedspruit

Bloemfontein East LondonDurbanCape Town

Image Credits: Johannesburg - Gauteng Film Commission. Durban, East London, Kimberley, Port Elizabeth, Richards Bay, Nelspruit - Wikimedia Commons

16 Destinations all over Southern Africa, non-stop.You could choose other ways of getting to your holiday spot but flying with us is easy and non-stop. Flying with us is also convenient, because we fly to major destinations and smaller cities all over Southern Africa and the DRC, every day. Taking a break? Then make the most of your time off. Because we fly for you.

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FACT BOX

EthIOpIAn AIrLInES

Ethiopian Airlines, one of the largest and fastest growing airlines in Africa, made its maiden flight to Cairo in 1946. with the addition of flight services to Maputo and Bangui, Ethiopian provides dependable services to 39 cities in Africa and a total of 60 international destinations spanning four continents.

Ethiopian won the NEPAD Transport Infrastructure Excellence Awards 2009 and the 2009 “Airline of the Year” award from the African Airlines Association (AFRAA). In August, 2008, Ethiopian won “the 2008 Corporate Achievement Award” of Aviation & Allied Business for setting the pace towards the development and growth of the African aviation industry. Ethiopian is also the first African carrier to win the 2008 Brussels Airport Company Award in recognition of its distinguished long haul operations witnessed through the introduction of new routes, new products, and close cooperation with Brussels Airport in marketing activities.

ACSA FEATURE

“The Group has intensified implementation of B-BBEE and now requires any potential service provider to have a minimum Level 4 accreditation status on B-BBEE, as required by the Codes of Good Practice issued by the Department of Trade and Industry,” said Monhla Hlahla.

ACSA actively encourages all its contractors and suppliers to use small- to medium-sized enterprises and women-owned organisations in delivering goods and services. The Group achieved a Level 3 B-BBEE contributor status, which means that ACSA has exceeded its Level 4 target and accomplished a recognition level of 110 percent for every Rand spent.

It distributed R24.3 million through Corporate Social Investment (CSI) projects

during 2009/10, which is remarkable given that it was a difficult trading period, which was characterised by a decline in passenger numbers, inflationary pressures, increases in operating requirements associated with the new infrastructure, 2010 FIFA World Cup operational readiness, reduced liquidity and increases in borrowing costs.

Looking to the future, the new infrastructure provides a platform to grow revenues. The negative pressures on aviation and travel have started to ease and, as the globe returns to something resembling economic ‘normality’, things look good for ACSA.

To learn more about ACSA visit www.acsa.co.za. EnD



RESPECT THE

T here are many advantages to running a family business. Of the companies registered in the industrial world around three-

quarters of all businesses are family-owned. The list includes some of the world’s best-known brands. Toyota, Wal-Mart, Samsung, Benneton, and Ford, are great examples.

Working with people you love, sharing a long term definition of success, being your own boss, having flexibility and security, and building a financial legacy for retirement and future generations are just a few of the benefits that family businesses boast.

“We are a family-run, family-owned business who has retained our traditional beliefs while moving with the times to remain extremely competitive,” says Richard Boardman, managing director of Boardman Bros (Pty) Ltd, one of South Africa’s leading manufacturers and distributors of high quality fast moving consumer goods, hardware, paints, hair care and body care products, and candles, for the last 40-odd years. “The business was started by brothers Dennis and Newton Boardman, my father and his brother, in the 1960s. In 1969 Boardman Bros (Pty) Ltd. was established and remains a family owned and operated business - just as the brothers envisioned,” he adds.

The business started off with 32 staff members in rented premises of 460 square metres in Stutterheim. The factory, says Boardman, was initially only a packing operation, but went into full production of various products in 1971. The range was increased during the same year and further expansion took place in 1978, with the introduction of a candle manufacturing plant. During 1984 production of wire nails, panel pins and clout nails began in a separate factory building. Another factory building was built in Ladysmith, KwaZulu Natal, in 1985 and incorporated as Boardman Bros (Natal) (Pty) Ltd. This factory produces the

Boardman Bros (pty) Ltd FEATURE


richard Boardman, managing director of Boardman Bros (Pty)

Ltd, one of SA’s leading manufacturers and

distributors of high quality fast moving consumer

goods, hardware, paints and candles for the last

40 years, sings the praises of family-owned and

run businesses.

same range of products with the exception of the wire nails, which are only produced at Stutterheim. Since then, both factories have been expanded a number of times, Boardman says.

Stutterheim now operates under about 11,000 square metres and Ladysmith, the home of Boardman Bros (Natal) and Clover Leaf Candles, about 10,000. The purchase of Clover Leaf Candles, a leading local manufacturer of decorative candles, in 2006, was a major coup, says Boardman, as was the 2007 purchase of Wonda Wave, a small local hair and body care products manufacturer which gave Boardman Bros access to the large ethnic hair care market.

“We are today an established, respected household name that is recognised beyond South African borders and offers a product range of over 1,400 products,” explains Boardman. “Our range can be broken down into four main categories namely candles, hardware, fast-moving consumer goods and hair care,” he adds. “Our leading brands are Newden, Powa, Madubula, Buzzooka,

Supa Pva, Supa Gloss, Numba 1 PVA, Wonda Wave, Birdy, Nikki, Dusk, You and Me, Black Sensation, and Hair Life.”

Because it is family-run and owned, Boardman Bros has a successful business identity and reputation. If people see you are a family company, they will instinctively trust you more. “In our experience customers and supplier recognise that family businesses are in it for the long run and are more likely to put your relationship with them above a single transaction,” Boardman explains. “Family companies are also often very flexible and quicker to act,” he says. “This has helped us grow and change over the years and meant we have continually improved and evolved as an enterprise. We’ve kept a close eye on market trends, made acquisitions where necessary, haven’t been afraid to invest and have continually grown and developed. We’ve created economies of scale through expansion and output increases and that has helped us a lot. It all means we are now in a strong position.”



A shared vision and strong family values ensure prosperity. This is certainly true of the Boardman Bros (Pty) Ltd. The second generation celebrated four decades of success last year and Boardman is determined to ensure the company remains successful, profitable and a sustainable family business, which will one day be handed over to the third generation.

“We have a long term goal,” he says. “But always the short term aim is to ensure that Boardman Bros remains successful, profitable and continues to grow. In recent years with the downturn that has been difficult, but we have achieved it.”

The Boardman clan, he says, were brought up with the same values – honesty, reliability and simple old-fashioned values. These values glue the business, and the family, together.

“We are confident that our products offer the best value for your rand, and we are in constant pursuit of excellence,” Boardman says. “It was always a goal of mine to join the family business, but I looked at it as more of a responsibility as well. My 11 years as managing director have been highly enjoyable and I’m proud of what we have achieved.”

Philanthropy is high on the Boardman Bros (Pty) Ltd agenda. An ethos of social responsibility has always been part of the company. “We believe that being part of a small town like Stutterheim has tremendous benefits and to enjoy them you have to contribute to the wellbeing of the community,” says Boardman.

For this reason Boardman Bros have a yearly budget, which is spent on helping the local community; notably sponsoring local Stutterheim rugby teams as well as the local Stutterheim Soccer League.

“We are proud of such things,” Boardman says.

For the moment, the economy has not returned to levels seen during the so-called boom years of 2007-8. Boardman Bros (Pty) Ltd has weathered the worst of the storm without losing market share or retrenching staff, who are extremely loyal and often work for the firm for many, many years. Weaker players though have dropped out of the market. Boardman is witnessing some improvements in margins and growth is likely but it is fragile and unpredictable. “We have had months where we grow 10-15 percent and others where we are down,” he says. “At the end of 2010, for instance, we did do very well, but January this year was flat. We’ll wait and see what happens; it is month to month at the moment.”

He sees growth in Wonda Wave and decorative candles. There is potential not just in South Africa, but further afield too. “We see opportunity in sub



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Saharan Africa,” Boardman says. “We see opportunity in the paints business too, growing our range to cater for more mid-income customers. At the moment, we appeal mainly to the low-income groups.”

Product development – and revamping – is essential, he says, in maintaining revenues and turnover. “If you do the same thing for 40 years, you’ll be bust. You have to be fresh. You have to develop new products and you have to be able to repurpose and revamp existing product, opening up opportunity in new markets.”

With the third generation due to start joining the company this decade, the future for this well-oiled manufacturing machine is bright.

To learn more about Boardman Bros (Pty) ltd visit www.newden.co.za. EnD


competitiveneil Kuschel, VP Commercial, DHL Express Sub-Saharan Africa, talks about opportunity

in Africa, helping SMEs become globally competitive, training and CSR.

H E L P I N G S M E S B E C O M E

G L O B A L L Y

DhL FEATURE


W ith an eye on helping small and medium-sized enterprises (SMEs) be better equipped to conduct

business on a global level, express delivery and logistics services provider DHL recently announced it is offering various services to SMEs meet the challenges of international trade and commerce.

Among these offerings is a brand new, dedicated team, whose sole job is to “look after” SMEs. Why choose DHL? Well, “nobody knows Africa” like them, says Neil Kuschel, VP Commercial, DHL Express Sub-Saharan Africa.

“We plan to give SMEs in South Africa access to global markets. SMEs don’t typically have their own procurement or logistics department.

“We are able to provide services to hundreds of small and medium-sized companies, which are an engine for growth and represent the future of Africa.

“The express sector is one of the major drivers of global trade and we are excellently positioned to capitalise on this through our services which meet our customers’ domestic and international transport requirements, anywhere around the world.”

About 95 percent of DHL’s customers in Africa are SMEs, yet they account for just 20 percent of volume, Kuschel noted. But it is fast growing market.

“When the economy dipped in 2008/9 a number of large African countries retrenched and implemented a number of cost cutting measures,” he says. “We saw the big companies cutting back a lot harder and faster than smaller enterprises. On top of that, a lot of those who have been retrenched have gone into business on their own; It means there is increasing opportunity in the SME sector.”

He continues: “Across Africa there seems to be a belief that now is the time to take your future into your own hands. The African culture is extremely entrepreneurial, vibrant

competitiveG L O B A L L Y

and passionate. We are seeing double-digit growth in the number of small trading companies. These guys are growing rapidly and the one thing they all have in common is that they don’t have logistics departments. They don’t have expertise in that. Their core competency lies elsewhere. But they need companies like DHL to offer advice, local knowledge and world-class services in order to grow. We see ourselves as a facilitator of trade.”

SMEs, he stresses, are growing rapidly and increasingly need access to new markets, from which to source from and sell into. “There is huge opportunity across Africa, but dealing locally is complex,” Kuschel says. “For a small company in South Africa to be able to look and leverage growth in the DRC, Nigeria or Ethiopia, they need to be able to talk to a company that knows what it is like to operate there,

understands local issues and has experience in those markets. We can help open up those markets to them.”

DHL has a huge Sub-Saharan presence; it operates in every country and has over 30 years of experience in the region.

“We have about 3,500 staff across the region, 1,000 of which are in South Africa,” Kuschel says. “This may sound like a bit of a funny statistic, but if you add the number of years our staff have worked with us, in total, we have over 20,000 years of experience in Sub-Saharan Africa. Nobody can come close to matching that. Most of our competitors operate through agents. We have our own teams. It allows us tight control.”

In all, he says, DHL has around 280 offices across Africa. Significantly, it has 25 so-called “gateways”.

“We have 25 gateways across Sub-


DhL FEATURE

We see ourselves as a

facilitator of trade

Saharan Africa,” Kuschel explains. “Backed by a team of professionals in customs clearance, our state-of the art gateways are basically fast, convenient and hassle free clearance facilities. As a result of faster recovery and processing time, customers will benefit from better throughput times on import consignments and export consignments.”

The Gateway facilities enable DHL to provide customers with enhanced solutions, faster clearance and seamless handling of in-bound and out-bound international consignments, he says.

“Significantly, we see DHL as a barometer of industry,” Kuschel continues. “We only move the material our customers want to move. If their business is growing, we move more; if their business is contracting, we move less. We saw a real slowdown in 2008/9 and growth was stagnant right up until 2010. The decline had stopped some time before, but the tough conditions remained. In Q2 and Q3 of 2010 we showed consistent growth. Q4

saw levels reach their highest point ever. We are confident the economy in Africa is on the up and trade between Africa and the Far East is booming.”

The Rand has helped make imports stronger and companies - who now have greater international buying power - are sourcing more products from overseas, he adds. “That benefits us of course. We are seeing rapid growth in our imports and as Africa is being democratified, and good governance and good governments have been installed, exports to neighbouring countries, from South Africa, are increasing.”

To support the growth, DHL is investing in training. “We continually enhance our culture of international expertise by providing Certified International Specialist training to all employees, a new requirement for every DHL Express employee,” Kuschel says.

As well as training, DHL has also been growing its involvement in CSR initiatives. “We recently became becomes new sponsor for Western Province, Stormers Rugby

Teams and Newlands Rugby Stadium,” Kuschel explains. “It is a three-year umbrella sponsorship agreement.”

DHL is the global market leader in international express, overland transport and airfreight. It is also the world’s number one in ocean freight and contract logistics. It offers a full range of customised solutions – from express document shipping to supply chain management – and its goal is to build “strong, long-term partnerships” with customers by providing world-class services, across all its operations, Kuschel says.

“We are extremely proud and excited to be the new official sponsors for the Western Province and Stormers Rugby Teams.

“This opportunity will further reinforce the brand, promoting positive public and customer perception.

“By strengthening our ties with Rugby, we have an opportunity to strengthen our marketing platform.”

The value of the sponsorship goes far

beyond the financial contribution for DHL, he says: it’s about customers, employees and the people of South Africa.

“We are looking to foster even deeper relationships with our customers; we have a long history of supporting rugby and this ties in with our global sponsorship as the new Official Logistics Partner to Rugby World Cup 2011.

“The game of rugby is perfectly in line with DHL’s values, such as a strong heritage, the importance of teamwork, speed and commitment, along with a strong desire to succeed,” Kuschel says. “In South Africa our commitment to sport not only aligns itself with the DHL brand, but to the country’s obligation in developing and nurturing South Africa’s talent and thereby cultivating the sporting professionals of the future.

“The sponsorship will provide a platform for DHL to interact directly with rugby fans and to contribute to the improvement of the fan experience. Fans have a lot to look forward to.”EnD



DhL FEATURE

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If higher electricity rates and taxes are putting tenants under pressure, South Africa’s dynamic retail property sector remains strong. And with

its asset base nearly doubled by the acquisition of Attfund Retail, high-end market leaders hyprop

are looking to the future as Colin Chinery discovers.

A H E A V E N L Y

H yprop’s acquisition of unlisted Attfund Retail almost doubles South Africa’s leading JSE retail property fund’s asset

base to R20 billion, bringing Clearwater Mall, Johannesburg, Woodlands Boulevard Pretoria, Cape Gate Retail Precinct, and a 25 percent undivided share in Centurion Mall to Hyprop’s shopping centre portfolio.

Hyprop also gets Atterbury Value Mart Pretoria and Cape centres Somerset Value Mart, Willow Bridge Lifestyle Centre, plus a

20 percent indirect share in Garden Route Mall.

Shopping centres have been the dominant driver in the retail sector of South Africa’s commercial property industry, delivering the best results during the global economic meltdown.

While the retail market remains strained as a result of reduced consumer spending and highly indebted households, global research shows that South Africa’s retail sector remains buoyant despite changing market conditions and consumer behaviour.

It now accounts for 14 percent of the total GDP, employs almost a million people, and annual retail sales exceed R524-billion.

EXCEllENT OPPORTUNITyAcquisition was an excellent opportunity, says Hyprop. The alternative for Attfund Retail was to list independently, which in some sense would have meant that Hyprop was no longer in this unique space as the premier specialised retail fund in South

hyprOp FEATURE


The alternative for Attfund

Retail was to list independently, which in some

sense would have meant that

Hyprop was no longer in this

unique space

Africa. There would have been one more player on the block, so the opportunity to merge two very compatible portfolios into a fund with an obviously greater substance and scale was very appealing and made business sense.

A marriage made in Heaven, as someone put it? Well, yes, but it’s not only in the compatibility of the properties and their quality, but also the compatibility of the

management team in terms of depth of experience, culture, and retail and management philosophy, which has made this a success.

SPECIAlISTSSince inception in 1987 Hyprop has honed its specialist focus on premium regional and super-regional shopping centres, and today six of South Africa’s prime shopping centres account for 94 percent of Hyprop’s direct property investments.


hyprOp FEATURE

Hyprop is a very well

managed, often conservative, retail investment

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The bulk of this investment activity has been over the last two years and is now complete. The Glen, foremost shopping centre of Johannesburg South, saw a substantial extension open before Christmas 2009, and the impact on shopper flow and turnover growth has been superb. At the same time Hyprop extended its reach at Canal Walk, Greater Century City Cape Town, and the largest shopping venue in Africa – a great product adding a new dimension to a super regional shopping centre.

There is major investment too at Rosebank Mall Johannesburg, with construction work starting in June and a planned opening in October 2013. With the R26 billion Gautrain rail project expected to be fully operational at the end of June, Hyprop anticipates quite a renaissance in respect of apartment and office blocks, and wants to expand its shopping centre to cater to the growing market.

There is a cautionary ROI note however for the Southern Sun Hyde Park Sandton,

part of the exclusive Hyde Park Shopping Centre, open and trading for a year. It’s a fantastic four star hotel that’s had excellent reviews. But occupancy is not what Hyprop would like it to be. The hotel industry in South Africa has been under significant pressure over the last 18 months - some people say it’s the worst trend in the industry in the last 40 years - so the timing of the opening was not ideal. That said, the product itself is superb and it will do well in the medium to long term.

So what is behind the slump? Well, it is complex, but there have been major cutbacks in corporate travel both in terms of the number of trips people take and the grade of hotel they stay in. At the same time the combination of global recession and the strengthening of the Rand have seen a major reduction in top end international visitors to South Africa, both by reduction in numbers and in the period of stay.

A third factor is that in anticipation of the World Cup there was a new enthusiasm and investment in hotel


hyprOp FEATURE

QUICk FACTS

COMPANy NAME: HypropFOUNDED: 1987lISTING: JSEwEB: www.hyprop.co.za

© 2011 Grant Thornton South Africa. All rights reserved. Grant Thornton South Africa is a member firm of Grant Thornton International Ltd (‘Grant Thornton International’).

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For more information please contact Rodney Osborne or Cindy Steyn at the following contact details:Marsh (Pty) limited4 Sandown Valley Crescent, Sandown, SandtonPrivate Bag X14, Benmore 2010+27 (0) 11 506 5000www.marsh-africa.com [email protected]

Marsh is proud to be associated with Hyprop Investments Ltd. We wish them every success in their future endeavours.

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hyprOp FEATURE

products, a feeling that the World Cup would be a fantastic money spinner for the hotel business. The result is that there is over-supply in places like Johannesburg and Cape Town, with a lot of competition and rate cutting.

Meantime, the South African’s love of big shopping malls is unabated. Big destination modern shopping facilities that have a good combination of convenience, aspirational retail and leisure facilities are successful

the world over. In South Africa they have become a social gathering place. People tend not to go to parks or for walks in the High Street, so the community centre almost is within your super regional shopping destination, and this is an added benefit for Hyprop.

PROACTIVEAfter a decade of extraordinary growth and development in the retail property sector, opportunities are now becoming fewer and fewer. City planners are focussing more on densification as opposed to suburban sprawl.

This has been boosted by

the Attfund acquisition and the coming together of

these two great portfolios and two great management

teams


Hyprop’s strategy of proactive asset management has enabled its shopping centres to adapt their retail offerings to tenant demands and the evolving lifestyle trends of shoppers. And with a track record of consistent growth in distributions, Hyprop has been continually ranked as one of the top-performing listed property funds in the country.

Hyprop has managed to maintain a very effective annual distribution growth despite bit of a slowdown over the past couple of years, but prior to that well into the double digits and over the last years high in the single digits. Between both its income growth and the unit price, its property has done very well for its investors.

Hyprop is a very well managed, often conservative, retail investment fund that has delivered a tremendous investment performance. This has been boosted by the Attfund acquisition and the coming together of these two great portfolios and two great management teams. EnD

PORTFOlIO

ShOPPING MAllS: The Mall of Rosebank, The Glen Shopping Centre, Canal Walk Shopping Centre, Stonebridge Shopping Centre, Southcoast Mall and Hyd Park Shopping Centre

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hOTElS: The Grace and Southern Sun Hyde Park


Shell began operating in South Africa well over a century ago, initially trading in paraffin and kerosene to bring both heat and light to communities of Southern Africa.

Shell S O U T H A F R I C A


Shell FEATURE

S ince energy is closely linked to economic growth, Shell’s presence has been inextricably tied to South Africa’s industrialisation,

infrastructure development and the increased use of transportation.

“We are naturally proud of Shell’s long association with Southern Africa,” says Bonang Mohale, Country Chairman & VP of Shell Oil Products Africa, South Region.

“This is an important and strategic country for Shell and we’re delighted that for several years now Shell has retained its preferred fuel brand status in this highly competitive market.”

Shell operates a number of oil-related businesses in Southern Africa including fuel retailing, chemicals, aviation, marine, lubricants, commercial fuels and bitumen. The company employs around 1400 people and operates some 750 strategically located service stations, with a market share of nearly 20 percent.

The company also refines crude oil through the 180 000-barrels per day SAPREF refinery, South Africa’s largest oil refinery, jointly owned by Shell and BP.

Located in Durban, SAPREF contributes about nine percent to South Africa’s gross domestic product. The refinery also manages and operates the single buoy mooring (SBM) on behalf of various petroleum companies. About 77 percent of South Africa’s crude oil imports are handled through the SBM.

Mohale, who joined Shell on 1 January 2009, has been at the helm of the South African company during one of its most challenging periods to date.

During 2010 we focused on

bedding down the system, so we’re

now reaping the benefits

of a simplified, uniform platform which ultimately

ensures a stronger focus on the customer


“The global economic recession had a profound impact on the oil industry,” says Mohale.

He elaborates that oil prices peaked at about $147, then halved from over $120 a barrel the previous year to just below $60 per barrel in the middle of 2009.

Against this backdrop, the company revised its short-term strategy to focus on reducing costs and generating cash.

“The recession led to the market for our products collapsing, while our margins remained under severe pressure since our cost base had increased substantially. The matter needed to be addressed with great urgency hence the emphasis on cost management.”

The focus on cash, Mohale explains, stemmed from a number of large projects that Shell’s Upstream business had embarked on that require significant cash injections for many years before they start to generate profits.

Mohale set tough targets for his leadership team to ensure the company survived the recession and was able to take full advantage of an anticipated economic upswing.

“Each Shell business and support function had to implement specific cost saving measures,” he says.

Shell FEATURE

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Dis n and warehousing – 24 to 48 hourdelivery turnaroundPr g and kagingInsurPr rement and pr t sourFull turn-key supply n managementAll administra veFore ourt equipmentPoint of saleShop ngsPr l items

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We at the Document Warehouse pride ourselves on our experience in designing and creating document management solutions, using a combination of the multitude of archive services that we have to offer. this incorporates managing your incoming mail through our mailroom services, converting the original documentation to image and taking care of your storage requirements in our archive warehouse.

“In addition, we implemented a freeze on all non-contractual spend – unless it was Health, Safety, Security & Environment (HSSE) or business critical. We also placed a moratorium on most business travel and, regrettably, we also had to reduce our headcount by about 200 staff.”The Retail business made deep cuts to its marketing budget by reducing sponsorship activities and exploring synergies across the different businesses to integrate marketing campaigns. The business also re-negotiated agency retainer fees to reduce costs.

The Commercial business launched an asset-neutral project to improve competiveness and also expanded its Deliver for Own Account (DFOA) model whereby a Shell distributor delivers product to customers on a commission basis.

Shell FEATURE

SApphIrE LOGIStICSSapphire Logistics has a compliment of Blue Chip clients for whom the company has been providing products and services within the logistics environment for many years.

the company has become a “one stop shop” for its client base and services their clients in various sectors including the banking and financial services sector, the motor industry as well as the petro chemical market in Southern Africa.

Amongst these is Shell South Africa with whom Sapphire has been associated in one form or another for more than 20 years. Sapphire’s service offer to Shell includes so much more than what is traditionally seen as pure logistics or warehousing and distribution.

Everything required to promote, launch or activate a brand, from design of uniforms, standard equipment, promotional items, and printed material to manufacture, warehousing, distribution and delivery.

Sapphire Logistics’ constant goal is exceptional customer service. their clients do not need a multiplicity of suppliers, manufacturers, designers or distributors – Sapphire will handle all aspects of the project from start to finish.

this article was commissioned by Sapphire Logistics. For more information please E-mail: [email protected] telephone: +27 21 530 1220 www.sapplive.co.za

Freightmax is proud of their association and long-term partnership with Shell South Africa. As a true extension of Shell’s business, Freightmax manages the logistics of packaged lubricants, providing a full logistics service, including end-of-production shuttling, distribution centre management, servicing collecting customers, export container packing, primary and secondary transport. In addition, Freightmax offers a comprehensive national network, extensive modern fleet and operates sophisticated real-time warehousing environments in major South African centres.

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The Supply and Distribution (S&D) business set about renegotiating all its primary road transport contracts, while simultaneously reducing its vehicle fleet by about 20 percent. S&D also reviewed the company’s depot footprint in the process to optimise its network, eliminate inefficiencies and reduce costs.

“It was a grueling year, but we ended 2010 on a high note,” says Mohale enthusiastically. “We achieved all our numbers, especially our profit targets and most other business objectives.”

But three accomplishments in particular stand out for Mohale. For almost two years, Shell South Africa had been implementing Downstream-One, a global project that introduces simplified processes and systems. The new system, which includes a SAP

platform, went live on 1 October 2009.“During 2010 we focused on bedding

down the system, so we’re now reaping the benefits of a simplified, uniform platform which ultimately ensures a stronger focus on the customer,” Mohale says.

Shell is also the first international oil company operating in South Africa to achieve a Level 3 Broad-Based Black Economic Empowerment (BBBEE) contributor status.

Mohale says this was achieved through a concerted transformation programme, underscored by the employment of young black women through the company’s graduate recruitment programme and the development of black entrepreneurs through Shell’s retail network programme. “We are

Shell FEATURE

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G4S is a global solutions provider to the Oil & Gas industry with a long association with the major players in this sector, protecting over 100 facilities in 35 countries, and thousands of kilometres of pipeline. We believe that the most secure and beneficial solutions come from understanding the challengers of the global Oil & Gas industry and ensuring the security of personnel and facilities involved in exploration & recovery operations, in addition to the secure delivery of the product through its distribution network.

By raising standards across the industry, and by combining technological solutions with the expertise of some of the world's finest security professionals, G4S can deliver solutions that meet today's stringent security requirements reliably, cost-effectively and in harmony with the Oil & Gas industry's operations network.

proud of this accomplishment because it is a key milestone in our ongoing journey to build capacity and ensure meaningful participation of previously disadvantaged individuals and groups in the economy.”

This achievement is, however, preceded by several other transformation milestones.

In 1998, Shell South Africa embarked on a refinery processing deal with its BEE partner, Thebe Investment Corporation. This deal was followed by an aviation marketing joint venture with Thebe in 2001.

In 2002, Thebe acquired a 25 percent interest in Shell South Africa Marketing (Pty) Ltd and in 2008 Thebe’s equity participation was extended to Shell’s entire value chain by acquiring 25 percent of Shell South Africa Refining (Pty) Ltd, which owns Shell’s refining interests in the country.

Shell also actively supports various social investment programmes with specific emphasis on environmental conservation, education and capacity

building. By way of example, last year Shell signed a three-year multi-million rand partnership with Food and Trees for Africa (FTFA).

“The FTFA partnership will see a substantial greening programme being undertaken at 200 under-resourced schools across the country. Some 10 000 trees will be planted at these schools and numerous organic food gardens will be developed to support learner nutrition,” Mohale says.

The third noteworthy highlight for 2010 is that Shell achieved its highest ever Brand Preference score. “A score of 34 percent firmly entrenches our position as South Africa’s preferred fuel brand,” a delighted Mohale adds. “This proves that we are living up to our commitment to meet and exceed customers’ requirements for energy products, which we have done through extensive research, understanding customer needs, and providing the right products to meet these needs.”

Mohale cautions, however, that as

Shell FEATURE

significant as the achievements are, complacency must never be allowed to creep in. “Our competitors will do their best to match our successes. But let me assure you, Shell people – as always – are up to the challenge.”

Beyond South Africa’s borders, in the midst of an already tough year, Shell announced in April 2010 that it would be divesting from 19 countries in Africa where it has Downstream operations. Only Shell South Africa was not included as part of the divestment review, although its LPG business, known as Easigas, was included.Mohale explains the decision is in line with a global Shell Downstream programme, The Three Keys to Winning, which drives the group’s selective growth ambitions, its desired footprint and its focus on operational excellence.

“Across the world Shell is concentrating its Downstream footprint on those markets that are considered core and where the company has the right combination of growth potential, supporting infrastructure, concentration of assets, people and brand strength.”

Shell is currently in exclusive negotiations


Speed, Choice and Convenience

Every successful business relies on effective data communication. that’s why Fastnet offers their customers wireless services based on 3 principles – Speed, Choice and Convenience.

With over 16 years of experience in wireless data and point of Sale connectivity services, Fastnet brings their customers tailored products that meet the requirements of any company that that requires high availability data communication with automated network redundancy.

Fastnet has continuously been working at offering services that are at the forefront of innovation to both meet and exceed their customers’ needs. It’s this work ethic that gives people the speed, choice and convenience they’ve come to expect from Fastnet.

So, if communication is the lifeblood of your business, call Fastnet

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Shell FEATURE

with two joint buyers for the entire portfolio of African countries. Shell previously announced that the key features of a deal it is aiming for is one in which Shell would retain a shareholding in the businesses and the Shell brand would remain across most businesses and products including Retail and Lubricants. The company is also seeking to keep its current organisational structure largely in place, thereby minimising potential job losses.

Looking ahead to 2011, Mohale is optimistic that Shell South Africa will once again deliver on its various targets.

“HSSE remains our first and most important priority, since running our business safely is the cornerstone of everything we do. Our goal to ensure zero harm to people and the environment is an absolute imperative so that everyone gets home safely.”

Mohale says that an immediate and urgent challenge for Shell South Africa is to ensure uninterrupted fuel supply to commercial and


FIRE AND INSTRUMENT SERVICESFire and Instrument Services (Pty) Ltd was founded in 1991, concentrating primarily on the fields of fire detection, fire suppression and systems automation. We are a proud supplier to Shell South Africa.

Besides the above, the company’s field of expertise has extended to include security systems (access control, intruder detection and CCTV) as well as full facilities management services including electrical demand side power management, air-conditioning control and monitoring, carbon footprinting and full systems management. We specialise in truly smart and economically efficient buildings. Our experience makes us the leader in the South African smart building industry.

Our expertise includes the design, supply, installation and commissioning of complete systems solutions using the i-series of building management software from Scansoft Technologies (www.scansoft.co.za), the most up to date suite of building management software available today.

Assuming a position at the front of the building systems integration market does not mean that we have neglected the foundation of our business. We continue to invest in the original core of our business, fire detection and suppression. Our staff are continually trained on the latest fire detection systems and we are thus qualified to design and install the most modern fire detection systems from manufacturers including Aritech, Ziton, Edwards, Notifier, Eltek Marine, Technoswitch and Vesda. We have recently purchased the most up-to-date Retrotech room integrity testing equipment and are now able to offer room integrity testing for large enclosures anywhere in South Africa. The room integrity test allows for verification of existing suppression systems, but more importantly, it should be used as part of the enclosure design process before sensitive electronic equipment is installed in a protected space.

From our head office in Parrow to our branch office in Johannesburg, we are able to offer a complete turnkey solution for both fire detection and suppression, as well as building automation solutions throughout South Africa, and all the way up into the rest of Africa. We currently have operations ranging from Marion Island in the Southern Ocean all the way up through Africa to Dubai.

Our specialised marine division is able to design, install and service all types of marine fire detection and suppression systems. We are active in Cape Town’s vibrant ship repair facilities, as well as in the increasingly busy ship manufacturing activities that are a growing part of the industry in Cape Town.

Sectors of industry to which we provide our services include Industrial plants and processes, Commercial buildings, Data Centres, Special Risks, Archives, Mining, and the Marine and Offshore industry.

For more information regarding our company, please visit our website at www.firepro.co.za or contact us on [email protected] or +27 (0)21 930 3228.

Explore. Drill down. Deliver.

Local expertise, global experience dimensiondata.com

Understanding what gets the job done is an invaluable resource. That’s why energy companies choose us.

Dimension Data is a specialist ICT solutions and services provider. With over a decade’s worth of experience in the Middle East and Africa, we enable energy companies to run seamlessly and ceaselessly.

Our proven expertise enables our clients to improve productivity, enhance efficiencies and reduce costs.

To power your business forward into the future, contact us.

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retail customers. In addition, the marketing businesses will focus on profi table volume growth and increasing brand visibility and market share through fuel launches and site upgrades.

“Operational excellence will remain a key theme with various targets set across the different businesses to improve the efficacy of our operations with particular emphasis on cost management and compliance with business principles and guidelines.”

He adds that the people-related focus areas are on improving change management and accelerating training and competence programmes for staff.

“We’re in business to win,” concludes Mohale. “The operating environment is tough and highly competitive, but our people have the requisite expertise, acumen and can-do attitude to rise to the challenge and ensure Shell remains South Africa’s leading oil company.” END


Lancet Laboratories is one of South Africa’s oldest and most respected private pathology laboratories and

continues to expand into Africa, says Lancet Laboratories marketing

director Peter de Wet.

ExpandingI N T O A F R I C A

Lancet Laboratories is one of Africa’s leading pathology laboratories, providing vital diagnostic and monitoring pathology

services in South Africa, Botswana, Ghana, Kenya, Mozambique, Swaziland, Uganda, Zambia and Zimbabwe.

Lancet is SANAS accredited and currently operates in both the public and private healthcare sectors. It cares for around 18,000 patients a day and offers an extensive range of pathology services, from sophisticated molecular and cytogenetic investigations to advanced chemical analyses.

“We operate pathology services north of Free State and have several hundred labs (around 300) across Africa,” says Lancet Laboratories marketing director Peter de Wet. “Our aim is to be the dominant force in the emerging new markets in South Africa and Sub Saharan Africa. We provide a wide range of lab tests and have positioned ourselves well geographically.”

Lancet was established almost 60 years ago in the heart of Johannesburg’s central business district. In 1996 the main laboratory moved to the suburb of Richmond, enabling Lancet to effectively service the whole of the Gauteng region, says de Wet. In 2000 it merged with the Durban pathology practice, Pillay MacIntosh & Partners, which had a major presence in KwaZulu-Natal, further expanding its geographical reach. More recently, Lancet has merged with the Dyson and Niehaus Laboratories.

“We continue to grow and develop, with a special focus on expanding services throughout Africa,” says de Wet. “We provide access to quality monitoring and diagnostic services and there is, in our view, an obvious and growing need for good pathology services on the African continent. Our geographical positioning is significant and strengthens our position as the leading

Lancet Laboratories FEATURE


private pathology laboratory in Africa.”Lancet has a large network of nurses

and phlebotomy staff who service private and public hospitals and clinics, as well as depots in Gauteng, Mpumalanga, Limpopo, KwaZulu-Natal and the North-West Province, he adds. Its team of dedicated couriers operate in all of these regions, collecting specimens from medical practices and depots and delivering them safely and efficiently to nearby laboratories. Lancet’s main laboratory in Richmond processes both routine and specialised pathology investigations and also acts as a reference laboratory to many smaller laboratories throughout South Africa, Botswana, Ghana, Kenya, Mozambique, Swaziland, Uganda, Zambia and Zimbabwe, says de Wet.

“As part of our growth strategy, we will be opening up facilities in Nigeria in the foreseeable future. As one of the major

players in the African economy, Nigeria is an important market for us and we will ensure that our facilities provide Nigerians with access to high quality diagnostic and monitoring services.

“We also have large reference laboratories in Durban and Pretoria - servicing KZN and northern regions - and numerous smaller STAT laboratories have been established in private hospitals and clinics,” he explains.

Lancet has been heavily involved in the fight against HIV/AIDS and tuberculosis (TB). On national TB day (24th March 2010) it announced details of an upgrade of its TB laboratory facilities in Johannesburg to a Pathogen 3 (P3) status.

de Wet says the lab uses new equipment that “rapidly processes samples”. TB is the principal level-3 pathogen in South Africa.

“The laboratory is also designed to create a safe working environment,” he



says. “Importantly, the upgrade of the facilities caters for the numerous diagnostic challenges that TB presents to the medical community.”

Lancet, he says, uses small, contained molecular biology techniques to make a rapid diagnosis within a few hours of receiving a specimen, while Epilente software links and monitors patients over long periods.

“We are prepared to support the drive for extensive testing and effective treatment of TB,” de Wet says.

He adds that recent developments in molecular biology have increased the diagnostic abilities and accuracy of diagnostic laboratories. These techniques are used in the new laboratory in Johannesburg.

“Lancet is leading the way. It is important to be at the forefront of TB treatment and diagnosis and I think we are.”



For the future, de Wet says, Lancet is continually pursuing SANAS accreditation for all its facilities and has ambitious plans to expand its African footprint.

“We will continue with the expansion of our footprint into Africa,” de Wet explains. “Expansion will occur at a measured pace given that we don’t want to over extend ourselves. When we go into a new country, we take in a core team from South Africa to get the fundamentals in place, empowering the local professionals with Lancet’s best-practice training. Equipped with the appropriate skills, our qualified local team is then charged with the responsibility of managing the operation. We want local expertise and also people that understand the local culture and the local way of doing things. If I go into Kenya, the approach there is very different to the approach used in South Africa, just in terms of the way folks interact. Local knowledge is imperative

Phadia believes the road to better healthcare begins with results. Results that cut through the confusion and uncertainty, and allow healthcare providers to act decisively for their patient’s health and well-being. Results that can restore a child’s freedom, a parent’s confidence, and a grandparent’s ability to embrace them both.

Results are the reason its vision is to make reliable diagnostic technology available to everyone. The company’s mission is to dramatically improve the management of allergy, asthma, and autoimmune diseases by providing healthcare professionals with superior diagnostic technologies and clinical expertise.

www.phadia.com

Medinox strives to offer its valued customers exceptional quality at affordable prices. With mx® Safety Blood Lancets, this goal is no exception. Medinox is able to provide medical practitioners and institutions with lancets of an exceptional quality at reasonable prices. In addition, Medinox offers a diverse range of medical supplies and surgical disposables.

Medinox cc, Harvil House, 254 Ashden Rd, Mondeor+27 11 942 5203 [email protected]

Medinox, proud supplier of mx® Safety Blood Lancets to Lancet Laboratories

and you can’t expect expats to come in with that level of local knowledge – it takes a long time to acquire it. We would rather use local people with skills and assist in strengthening their capabilities.”

Lancet aims to reinforce and maintain its position as the leading private laboratory in Southern Africa. de Wet says this will be achieved by maintaining high levels of service, investing in technology and encouraging innovation. It will also continue to invest in its people.

“We recognise the importance of our personnel and are committed to training them to provide a service that we expect our clients to receive. We are committed to continuous improvement in all aspects of our operations but can’t stress enough how important the staff are to the future success of Lancet Laboratories. We try to value our staff and create a good working environment.” EnD


Established in 1951, Staalmeester manufacturers a wide range of products typically used by customers in the agricultural industry.

C O S t E F F I C I E n C y A N D S E R V I C E T O T H Efarmer

Staalmeester FEATURE


A number of family businesses have featured in this month’s magazine. Staalmeester is another name to add to the list. As we’ve

seen, there are many advantages to running a family business. Working with people you love, sharing a long term definition of success, being your own boss, having flexibility and security, and building a financial legacy for retirement and future generations are just a few of the benefits that family businesses boast.

Staalmeester was established in 1951 and it has been in business ever since. It manufactures a wide range of products like hammer mills and forage processing machines – there are some great videos of these wonderful machines on video sharing site Youtube. “As early as 1950 Mr PML Coetzee designed and manufactured the first mobile harvester and ground nut sheller in South Africa, which was later exported to other parts of the world,” Staalmeester’s website says, detailing this market leading manufacturer’s origins. “As entrepreneur Mr Coetzee saw the need for many other locally manufactured implements designed especially for the South African conditions,” it continues. “He then continued to design and manufacture these implements. As patent engineer he received an Honorary Doctors degree in 1964 as Mechanical Engineer, with full professional status.”

Coetzee powered the business with private capital and did a lot of pioneering work with his unique new designs. In 1982 he retired as managing director and his son Martin took over the business. “Staalmeester Importers and Exporters (Pty) Ltd and Staalmeester

Agricultural Imports CC is steered by Mr. Martin Coetzee as an family enterprise,” the website says.

The Staalmeester 6776 hammermill, Staalmeester S290 wood chipper and Staalmeester DS-540 double chop are some of Martin Coetzee’s pioneering innovations and he continues to drive this successful family enterprise forward. He has successfully

retained Staalmeester’s traditional beliefs while moving with the times to help the company remain extremely competitive.

“The 6776 is a multi-purpose heavy-duty hammermill and easily comparable to any industrial hammermill currently on the market,” Staalmeester says. “The enormous feeding tray handles anything from square bales, shelled maize, maize on the cob to maize stalks. The adjustable closing plate matches the amount of maize you wish to be milled with the kW available. A large

diameter auger feeds material evenly through to the rotor housing aperture. An outstanding characteristic is the sophisticated intake auger on the rotor axle, which eliminates breaking up of bales and primitive manual intake.”

Today Staalmeester exports to various countries and participates in many international exhibitions including the world’s largest static and demo agricultural show, Expo Chacra. It manufactures product in Hartbeesfontein in the North West Province.

“Modern day Staalmeester has strengthened its export to various countries like Egypt, Malaysia, Chile, Libya, Saudi Arabia, Nigeria, Kenya, Malawi, Ethiopia, Mozambique, Botswana, Zimbabwe, Zambia and Namibia with great success,” the company says. “We manufacture the Staalmeester

As early as 1950 Mr PML

Coetzee designed and manufactured

the first mobile harvester and

ground nut sheller in South Africa


Staalmeester FEATURE

municipalities and nature conservation enterprises. It also works with customers in the sugarcane, mushroom and feedstock industry as well as road maintenance and rehabilitation, forestry and waste recycling.

“We have agents and outlets countrywide,” Staalmeester says.

The company imports from Italy (finger wheel rakes, disc mowers and fertilizer spreaders), Spain (fertilizer spreaders and ground preparation implements), Germany (high speed

hay rakes), Denmark (mowers and mower conditioners), Austria (single and double row forage harvesters), Brazil (pick up harvesters, forage harvesters and forage wagons, fertilizer spreaders and boom sprayers), Finland (wood chippers and log splitters) and Turkey

range in collaboration with Entag in Egypt under a licensing agreement for the Egyptian market and Middle Eastern countries, mainly for the processing of solid waste, waste recycling and rice straw.

“Our factory has a covered working area of 8,200 square meters and a display area of 16,400 m².

“Presently we are focussed on key markets within South Africa but have started to strengthen our exports to various countries with great success.”

The company’s motto is “productivity, cost efficiency and service to the farmer” and Staalmeester focuses on general commercial farmers, specialised dairy farmers, specialised cattle and sheep farmers, correctional services, game farming,

The 6776 is a multi-purpose

heavy-duty hammermill and

easily comparable to any industrial

hammermill currently on the

market

Auto Johnco is geregistreer in 2000 en amptelik in 2001 begin met besigheid. Diens en lewering van produkte is vir ons van groot belang. Ons onderhandel met groot verskaffers en beding die beste pryse en beskikbaarheid van produkte vir ons kliënte.

Die produkte wat ons voorsien is skryfbehoeftes, toiletpapier, garage rolle, verpakkingsmateriale (bokse, bubblewrap, palletwrap, aerothene, tape), plastiek, mediese bokse, mediese ice packs, abrasives, fasteners, landbou dryfaste en ratkaste.

Johan & Colleen de Wet

AUTO JOHNCO CCReg. No. 2000/012002/023 | VAT No. 4020201309

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Enoagricola rossi s.r.l., a leader in the agriculture sector for over

25 years. the mission of enoagricola rossi s.r.l. is to supply haymaking,

agricultural, and oil mill machines and be acknowledged by its customers

as the preferred supplier, not only because of the intrinsic quality of its

products, but also because of its attention to all the production, economic,

and environmental aspects of its business.

www.enorossi.it

(fertilizer spreaders and hay rakes).It main products are hammermills,

hammermill combinations, wood chippers, forage harvesters, forage wagons, fertilizer spreaders, log splitters, slashers, trailers, rotorcultivatiors, seedbed formers, mowers, hay rakes, balers and tractors.

Because it is family-run and owned, Staalmeester, like most family businesses, has a successful business identity and reputation. If people see you are a family company, they will instinctively trust you more.

Agriculture has, for many years, formed the backbone of Africa’s economy, contributing 60 percent of GDP and accounting for bulk of the continent’s employment, mainly in the rural areas. In addition, the sector contributes a huge amount to the total export earnings of the continent and about half of the tax revenue, while providing for most of Africa’s food requirements.

To learn more about Staalmeester and its extensive product range visit www.staalmeester.co.za. EnD


Effective public transport has positive spin-offs for the economy, environment and social advancement. But as Cromet Molepo, CEO of

PRASA CRES tells Colin Chinery, to get the South African public to use the rail system, it needs to be seen as safe, reliable and efficient, with train

stations attractive meeting places.

STRAINTIME TO LET THET R A I N T A K E T H E

prasa Cres FEATURE


The financial stability turnaround strategy lead by the Prasa Group CEO, Lucky Montana, is premised on a high quality service that will ensure a continuously satisfied customer, says Molepo, 55, with a lifetime career in top level real estate. A number of new ‘state-of-the-art’ stations including NASREC, Century City, Cape Town Station upgrade, Doornfontein, Rhodesfield and Moses Mabida were completed on time for the World Cup opening, and a least 40 station refurbishments and six station upgrades will be completed by the end of this financial year.

“A further 50 stations are planned for improvement or refurbishment for the year

ending March 2012. Cape Town Station and Mabopane stations have been the focus of major upgrades over the past financial year, with the Cape Town project substantially complete and Mabopane due to be completed sometime next year.”

Commuter rail has a long history in the public transport environment, but underfunding has led to the neglect of essential upgrades, maintenance, and refurbishments. And with current rolling stock going back to the ‘60s and infrastructure

decades old, there has been a decline in the quality of service.

But now there is movement along the track, with Prasa investing heavily in rolling stock refurbishment and infrastructure upgrade and modernisation. “The South African Government has taken a strategic decision to invest in public transport, and the amount of money projected to be spent in the coming years is a clear indication of its commitment.

“Our role at Prasa Cres basically is to ensure that the station facilities are attractive for commuters, and visitors to our stations and not just the places where

South African rail travel is a luxurious and seductive affair when filtered through the tourists’ prism of The Blue Train and Rovos Rail. But no Five

Star appeal on the commuter lines. For the average South African, rail travel is uninviting, unreliable, and no contender in his consuming love affair with the car.

“There’s still a perception that the rail service is only fit for the poor working class, with commuters still perceiving the rail system to be unsafe, inaccessible and unreliable,” says Cromet Molepo, CEO of the property management services, Prasa Cres a division of PRASA (Passenger Rail Agency of South Africa.

This view forms the cornerstone of the PRASA Group turnaround plan, a strategy, which says Molepo “ensures these perceptions and at times realities are dealt with head on.”

Since its establishment in 2009, PRASA has invested heavily in rolling stock refurbishment and infrastructure upgrade and modernisation. And with the efforts to stabilise the service over the past few years, “there are indications that rail transport is beginning to regain its rightful place in the public transport space, and a gradual improvement of customer satisfaction index.”

A watershed was the opening last year of the R24 billion Gautrain, Africa’s first high-speed urban train and widely hailed antidote to Johannesburg’s notorious traffic jams. Coinciding with the hosting of the Soccer World Cup, the wealthy joined the underprivileged flocking to upgraded stations and reliable services. Suddenly rail was no longer the reserve of the poor working class.

A further 50 stations

are planned for improvement or

refurbishment for the year ending

March 2012

people spend as little time as possible. The private sector will be invited to invest in the numerous upgrades, and we are in discussions with a number of commercial operators to locate the services at our stations. We will be putting in place ATMs, retail facilities and other services and conveniences – that’s the focus for the next coming years. Although there were still doubting Thomas’s, the thousands of people who were able to travel between the major city and stadias during the World Cup indicated the crucial role rail services can play in moving the masses of people in the preferred public transport system. And with Gautrain and our Business Express Services in major cities within SA, you start getting a mixture of different income groups using the train.”

South African cities like those in all major countries will never be able to cope without reliable public transport system, says Molepo. “Traffic congestion, the high cost of toll fees,

and the time spent travelling on the road are becoming counter-productive. From Pretoria to Johannesburg for example – 54km or 34 miles - takes two hours each way

travelling by road – and as much as three hours at peak times.

“If this can be reduced to one hour each way you are putting back immediately two or even four hours of productive work. And during the journey people could be doing some work on their computers, reading, etc in the comfort of a train. So there’s no doubt that the multiplier effect in the South African economy will be enormous.

“The introduction of a reliable high speed train service is no longer an option but a necessity. The Government has committed to the introduction of the service between Joburg and Durban, a project estimated to take anything between 10 and 15 years, and like the Gautrain, this will involve a number of stakeholders to deliver. Some of the African


prasa Cres FEATURE

South Africans can achieve the

impossible when we put our

minds to it

countries, Morocco for example, are also embarking on similar HSL services, so South Africa cannot be left behind given its position as an economic powerhouse in the continent and a gateway to Africa.”

Molepo sees rail as being best positioned to play a critical role in the socio-economic transformation and development of South Africa. “It is currently one of the – potentially - most cost efficient and value-for-money modes of transport, particularly for the rural and urban poor. There are however legacy challenges such as the ageing infrastructure and lack of appropriate skills to maintain and manage it and these are issues PRASA has identified as critical challenges to be dealt with immediately.”

The current patronage of at least two million commuter trips per day is still a “drop in the ocean of what potentially this mode of transport could be carrying,” says Molepo. “But by refurbishing the rolling stock, improving the signalling system and upgrading the infrastructure, this is

projected to increase significantly in an effort to make Prasa number one public transport operator on priority corridors over the next four to five years.

“And the role Prasa plays in the transformation and development of the country cannot be underestimated. The mass transportation system will be the backbone on which the economy can only prosper to guarantee a shared growth to all communities and parts of the country.”

With the combined efforts to stabilise the service over recent years, Cromet Molepo says there are indications that rail transport is “now beginning to regain its rightful place in the public transport space.” More than that, the launch of the Gautrain, along with state-of-the-art World Cup stadiums, is being seen as proof that South Africa is no longer travelling second class in the world. “It has created a feeling of national pride,” said the former Transport Minister Jeff Radebe last year. “South Africans can achieve the impossible when we put our minds to it.” EnD


Rako Group needs no introduction to manufacturers whose products require labels - and which don’t? Now the specialised German

printing firm has moved into South Africa.

S H R I N K I N G Y E T

Cape Town is an industrial powerhouse and a focus of South Africa’s food, beverage and household goods manufacturers.

It was the perfect location to choose when Rako decided the time was right to establish a presence in Africa as part of its global expansion strategy. In March 2009 the group set up a company in China, and it is significant that just a year later it chose South Africa as the next market in which it really needed a presence.

The factory was completed by November 2010, and in a remarkable two week period transferred two up to the minute Mark Andy 2200 eight-colour presses, and a Mark Andy 830 three-colour press, from a local printing company it had acquired, and had them in production. From scratch, says managing director Uwe Boegl, a brand new label production facility in Capricorn Business Park had been created to exactly the same standards as at its headquarters at Witzhave near Hamburg.

That will inevitably put the South African packaging industry on the qui vive. Rako Group is a major international player in label printing technology, with centres of excellence in flexible packaging, security technology and smart labelling, related engineering software and even, through its subsidiary LeoMat Engineering, in the manufacture of machines for slitting, die cutting, or overprinting labels.

Joining the three Marc Andy presses are two ABG International, one Rotoflex and a LeoMat P430 rewinder; the factory has been equipped with a brand new, R18 million German Gallus EM 430 S multi-substrate and multi-process press that will enable it to print up to 10-colour UV flexo and rotary

screen on flexible materials and self-adhesive labels for the local market. Intensive training has been undertaken in cooperation with the manufacturer and the machine will be running by the end of February 2011.

However even Rako can’t open up shop in a completely new market and hope to take it by storm. “You have to plan your approach to the market meticulously,” says Uwe Boegl. “Rako Labels South Africa will continue to produce mainly premium self adhesive labels, wrap around labels and tags, but completes its product range with sophisticated products like smart labels, booklet labels and shrink sleeves

which will be supplied from Germany until the Cape Town factory has completed its accreditation processes and trained its staff to handle the more sensitive raw material stock.”

Shrink sleeves, he adds, are the product of the future in the beverage, food and personal healthcare markets, offering the customer a great branding and marketing medium with the added advantage that they can incorporate tamper-proofing and anti-counterfeiting features. “We are bringing experts

in from Germany to train our people how to run unsupported film, sleeve and store temperature-sensitive stock, because by the end of the year we propose to have a fully equipped sleeving facility here.”

Though the work of establishing a new factory in record time and without disrupting the existing client base was incredibly demanding, it was made easier by what he calls the ‘mother hub’ in Witzhave. The physical layout of the plant, its workflows and its supply chain are all modelled on the processes that have been applied and proven

rako Labels FEATURE


I have set up a very rigorous

training plan with our suppliers

covering the whole of

2011


rako Labels FEATURE

contrasting with the laissez-faire attitude that sometimes prevails.

The second route is to follow the developments taking place in regional growth economies. Angola, Mozambique, Zambia and Zimbabwe are all showing growth in manufacturing but suffer from a dearth of label manufacturers.

Rako will do best in the most demanding of applications, where it has well tried solutions. While the beverage and food market offers large volumes for self adhesive, wraparound labels and sleeve labels, the personal healthcare and petrochemical market requires highly refined labels where design and performance are all important. He is offering these clients the most suitable stocks from selected suppliers for each application and a premium print quality up to 200 lines-per-inch screen on his new Gallus press including cold foiling and relief varnishing – way ahead of current practice in South Africa.

This is Rako’s first venture into the African market. With the widest and best quality printing capability at present available in South Africa, Boegl believes that by 2012 the local company will be the preferred supplier to those international customers with production facilities in South Africa, hitherto dealt with from Germany. EnD

in Germany. About half the 22 staff were taken on from the acquired company, the remainder hired locally. Boegl is the only expatriate on the staff, though print instructors and quality control supervisors have been flown in for limited periods on a rotating basis.

Currently, then, the new company has plenty of printing capacity and a workforce that is still getting up to speed with its potential. During February a pre-press and graphics department has been started. “It is a big step forward to be handling all artworks in-house and to ensure a consistent colour management by digital proofing, digital plate making and colorimetric ink matching as well as spectrophotometric quality control in the pressroom,” he says.

The focus now will be to complete the process of quality and hygiene accreditation at this factory. “With ISO 9000 and HACCP verification we are able to fulfill the expectations of larger corporations, even the ones that already do business with Rako globally.” This means that training will have to be ongoing, and in this Rako’s own resources from the mother hub are being augmented by training from international machinery and raw materials suppliers like Avery Dennison, Ritrama, UPM and Raflatac as well as local ink and die manufacturers Select Inks and Rototec. Says Uwe Boegl: “I have set up a very rigorous training plan with our suppliers covering the whole of 2011: everyone gets at least two hours’ training each week from one or other of them.”

Marketing strategy follows two distinct routes, he continues. “We don’t want to disrupt the market too radically by only grabbing customers from the competition. There are plenty of gaps crying out to be filled, and the biggest one is for a truly reliable labelling supplier – German excellence proudly produced in South Africa!” Unwavering quality, the guarantee of consistent colour management from proof to stock delivery to subsequent repeat orders, and on-time delivery every time will be a significant USP

AvEry DEnnISOnAvery Dennison roll Materials is dedicated to the manufacture of the leading global brand of self-adhesive roll labelstock - Fasson®. roll Materials Asia pacific trains its partners and label printers from the region at the Self-Adhesive Converting College it established in Kunshan, providing professional training in self-adhesive label printing and converting technologies.

today, the Fasson® brand is synonymous with innovation in pressure-sensitive materials and customer-focused service. It represents best-in-class quality, reliability and performance, with product applications in virtually every major industry around the globe.

Avery Dennison welcomes RAKO Labels to South Africa

Global and local partner of RAKO Labels

[email protected]

08000AVERY (28379)

4008 RAKO (proof2).indd 1 2011/02/01 3:21 PM

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LABEL & PRINTING SYSTEMSA division of SAREPCO Investments Holdings (Pty) Ltd.



LABEL & PRINTING SYSTEMS A division of SAREPCO Investments Holdings (Pty) Ltd.

Tel: 011 805 4811 Fax: 011 805 4814email: [email protected]


I nVenT eD FOR LI Fe1 2 5 Y E A R S O F B O S C H

When Bosch coined the phrase “invented for life” they meant it as South Africa Magazine

discovers.

Bosch Group is a giant of industry. The Stuttgart-based privately held firm includes Robert Bosch GmbH, the world’s largest car parts

manufacturer and supplier.Robert Bosch South Africa (RBSA)

currently employs 977 members of staff and generated sales of R1.374 Billion in 2007. In South Africa, the company sells numerous high-quality Bosch products - from spark plugs to technically advanced workshop

equipment and irons to freezers and drill bits. It is responsible for the manufacture and distribution of automotive parts and systems for OEM’s, franchise dealers and the independent automotive aftermarket, as well as the aftermarket distribution of power tools and security systems.

Robert Bosch South Africa is a regional

branch of the Bosch Group, one of the world’s biggest private industrial corporations, with generated sales exceeding 47 billion euros. Bosch has a large share of the South African power tools and security systems aftermarket and appeals to individual consumers as well as to retailers looking for quality products to enhance lifestyles and complement their existing ranges.

“Automotive Technology is one of the biggest corporate divisions in the World Wide Bosch Group. In 2007, sales increased to approx. 28.4 billion euros. Bosch is the world’s largest manufacturer of automotive parts and systems,” RBSA says. “In 2007, the corporate division generated annual sales worth app. 11.7 billion euros. Bosch South Africa operates in the Power Tools, Household Appliances and Security Systems divisions.”

robert Bosch South Africa FEATURE


Bosch products’ success

has been their high level of

innovation and high quality

Technological milestones1955: Image from a leaflet advertising the Junkers Gasiator gasfired radiator, evoking the promise of a cozy, warm home.Pictures throughout: Bosch

125 yEARS AND COUNTING2011 is a big year for Bosch. In fact, it is a double anniversary: it is celebrating its 125th anniversary, as well as the 150th anniversary of its founder’s birth. It was on November 15, 1886, that Robert Bosch established his “Workshop for Precision Mechanics and Electrical Engineering” in Stuttgart, Germany, and that laid the foundations for what has since become a leading global supplier of technology and services. Born on September 23, 1861, in Albeck near Ulm, he was a technology pioneer who propelled his company to international



success. Bosch died in Stuttgart on March 12, 1942, aged 80.

Today, the company he created does business through more than 300 subsidiaries and regional companies in over 60 countries, and has a workforce of more than 280,000 associates worldwide. An international network of sales companies and partners

spans some 150 countries, ensuring that the company’s products and services will continue to feature in important growth markets in the future.

“Our customers, as well as everyone who has ever used Bosch products, have also played a role in the company’s 125-

The history of internationalization at Bosch1982: Engineering draftsmen at work in Bangalore, India

Many of our pioneering technological achievements

were the result of our fruitful

interaction with our customers

AUTOMOTIVE PLASTICS (PTY) LTD. Head office. Factory. Telephone: +2711 708 1838 (4 lines) +2711 462 0693 Fax: +2711 708 1829 Postal Address: Website : www.advplastics.co.za P.O.Box 35632 Email: [email protected] Northcliff [email protected] R.S.A 2115

We are an ISO 9001: 2008 listed company who specialize in injection moulding products with the main focus on the automotive sector. In 2005 ADV Automotive Plastics was started to concentrate on the automotive sector. We have machines ranging from 30 ton to 150 ton in this facility and ma-chines ranging from 20 ton to 500 ton in our sister division. We are a family run business that was started in 1982. Between us we have 78 years of injection moulding experience. The main focus of our business is to supply quality product at a reasonable price. We have had a proud association with Robert Bosch for the last 17 years supplying them with injec-tion moulded product. Our association with them facilitated the need for a stand alone company to concentrate on the automotive sector. For further information please visit our website.

year success story,” Franz Fehrenbach, the chairman of the Bosch board of management, said in a press release sent to South Africa magazine.

Hermann Scholl, the chairman of the shareholders meeting and of the supervisory council, agreed, and added: “Many of our pioneering technological achievements were the result of our fruitful interaction with our customers. And a spirit of innovation pervades our company to this day – an unceasing search for new areas of business, markets, and technologies.”

PAST, PRESENT, AND FUTUREFor the Bosch Group, the

BOSCh… All IN ThE NUMBERS

SOUTh AFRICA:Annual sales: R1.374 billionlocations: Johannesburg & BritsNo. of employees: 977

wORlDwIDE:

Annual Sales: 45.1 billion eurosNo. of employees: 280,000

SOURCE: www.bosch.co.za

Franz Fehrenbachchairman of the board of management of RobertBosch GmbH since 2003

double anniversary will be the dominant event of 2011. Through numerous activities around the world, the company will “mark a year to remember”. The first of these activities is the interactive anniversary website, which is now online. At www.125.bosch.com, everything revolves around the “BoschGlobe,” which encourages visitors to explore and take part.

In “Bosch world” visitors can embark on a journey through time and even suggest

ideas as to how the company could develop in the future. “In the anniversary year, we want to trace an arc from our origins to the future. To achieve this, we have prepared many activities for our customers, business partners, and associates,” says Uta-Micaela Dürig, senior vice-president of corporate communications at Bosch.

wEll POSITIONED FOR ThE FUTUREWith 3,800 patent applications filed each year and more than 3.5 billion euros invested annually


Megatrends such as climate

change, renewable energies,

demographic change, eco-friendly mobility,

and increasing interconnection

as a result of the internet are

becoming increasingly important

Technological milestones1967: Market launch of the Volkswagen 1600 E featuring the first Bosch electronic gasoline injection system, the D-Jetronic

in R&D, Bosch aims to maintain its focus on innovation in the future, and in this way to lay the foundations for further sustainable growth.

With the long-term in mind, Bosch is investing in promising markets such as renewable energy and so-called electromobility. Some 50 percent of the annual R&D budget, remarkably, is devoted exclusively to products that conserve energy and resources.

“Bosch products’ success has been their high level of innovation and high quality,” a recent Bosch press release said. “It was these properties that allowed the company founder Robert Bosch to gain a foothold in international markets as early as the end of the 19th century. From the first workshop in Stuttgart, the company rapidly developed into an international business. The construction of a low-voltage magneto device for vehicle engines in 1897 is the start of a long list of Bosch innovations. It was succeeded in 1902 by the Bosch high-voltage magneto ignition system. This was

the decisive commercial breakthrough in the company’s rise to a successful, leading automotive supplier.”

Bosch has played a decisive part in shaping the automobile’s evolution and will continue to do so. New systems developed by the company are helping to reduce the fuel consumption and emissions of motor vehicles powered by internal-combustion engines, amongst other things. Indeed, the company is also pushing forward with further electrification of the powertrain and its parallel full hybrid technology, which allows vehicles to run solely on electricity, has already gone into series production at the German automakers VW and Porsche.

All-electric drives for cars are currently being developed as well.

“Megatrends such as climate change, renewable energies, demographic change, eco-friendly mobility, and increasing nterconnection as a result of the internet are becoming increasingly important,” Bosch says. EnD



Technology for the futureBosch generator gearboxes convert the movement of the rotor blades into electrical power. The photo shows a generator gearbox in the lower half of its housing.


Gearhouse South Africa has reached a dominant market

position under the strong leadership of Ofer Lapid.

rentalC O M P A N Y

S A ’ S L A R G E S T

Gearhouse South Africa has grown from a small Johannesburg-based lighting company with an equipment inventory of R300,000

in 1991 to a countrywide total technical solution group with a current net book inventory valued at R270 million.

It is a remarkable story and one that started in 1996 when Gearhouse PLC, a UK-based company with operations on five continents,

acquired Lighting Unlimited, as it was then known. In 2001, a successful MBO of the South African division of Gearhouse PLC was completed and Gearhouse South Africa was born. The locally based and proudly South African company has since reached dominant market share under the strong leadership of Ofer Lapid, its Founder and Managing Director.

“Gearhouse South Africa offers the skills and expertise of many internationally recognised experts within its lighting, audio, structures, power, rigging, set and audio visual divisions,” he says. “Technical design services are offered as a value-added service to facilitate accurate planning and budgeting for the event, whilst leadership in safety practice assures you of incident-free eventing,” Lapid adds.

Gearhouse South Africa’s head office is in Bezuidenhout Valley, Johannesburg, but it also offers regional services with fully staffed and equipped branches in Cape Town and Durban. It is able to offer access to the full range of technical services though a single contact, countrywide, Lapid explains, and this gives the firm a competitive advantage. “Not only are we the industry market leader in terms of size capacity and technology, we are defined by our innovative approach and the intellectual capital of our staff,” he says. “We are unique

Gearhouse FEATURE


Not only are we the industry market leader in terms of size

capacity and technology, we are defined by our innovative

approach and the intellectual capital

of our staff

Gearhouse SA supplied lighting, audio, rigging, power and sound

for the 2010 world Cup Closing Ceremony, Photo louise Stickland

in having the widest range of services currently available in SA all under one roof and everything accessible through a single contact. Our competitive advantage lies in the fact that we provide a turnkey technical solution, with specialists in each field.”

“We are always looking to improve our operational systems and maintain standards in line with the highest international benchmarks,” he continues.

In terms of customers, it is a broad spectrum, and can be anyone planning an event, of any size, Lapid says. However - and interestingly - Gearhouse South Africa’s client base has turned around from a 20 percent corporate sector to an 80 percent corporate sector over the past few years. “We specialise in lighting, audio, staging, power, rigging, audio visual, including camera and broadcast facilities, sets and video conferencing, which individually, or as a package, provides our clients with that little extra that we like to call ‘Magic’,” Lapid explains. “Additional services

available within the group include LED Outdoor screens, grandstand seating, theatre equipment rental, portable venues, IT rental and a venue technical management service operating in key venues across the country.

“Unfortunately we took a knock during the recession, as did most rental companies, but we were very grateful to have survived without having to resort to retrenchments or any other drastic action. In my eyes, the recession was part of the cycles and trends that beset businesses during their lifespan. We have survived so far and we intend to get stronger.”

Gearhouse South Africa supplied full technical production for the FIFA World Cup Kick-Off Celebration Concert, staged at Orlando Stadium in Soweto. It was a fantastic achievement and one Lapid was happy to shout about. “The show was broadcast to tens of millions of music and football fans worldwide, the night before the first match,” he says. “We did the rigging, lighting, sound, LED screens, power, stage and set. It was an


Gearhouse FEATURE

Metro FM Awards 2010, photo Catriona Regan

The O�spring UB40 Sting Counting Crows Avril LavigneMichael Buble Pink Westlife 30 Seconds to Mars Enrique Iglesias

Tom Jones Billy Joel Tina Turner Lionel Richie JamiroquaiRobbie Williams Whitney Houston Sting Andrea Bocelli Bryan Adams

Foreigner Live Lenny Kravitz Meatloaf Michael Jackson U2 Kings of Leon Roxette Neil Diamond Rammstein John Legend

Chris de Burgh The Killers Cli� Richard Kelly Clarkson Elton JohnThe O�spring UB40 Sting Counting Crows Avril Lavigne

Michael Buble Pink Westlife 30 Seconds to Mars Enrique IglesiasTom Jones Billy Joel Tina Turner Lionel Richie Jamiroquai

Robbie Williams Whitney Houston Sting Andrea Bocelli Bryan AdamsForeigner Live Lenny Kravitz Meatloaf Michael Jackson

U2 Kings of Leon Roxette Neil Diamond Rammstein John LegendChris de Burgh The Killers Cli� Richard Kelly Clarkson Elton John

The O�spring UB40 Sting Counting Crows Avril LavigneMichael Buble U2 Westlife 30 Seconds to Mars Enrique Iglesias

Tom Jones Billy Joel Tina Turner Lionel Richie Jamiroquai

once-in-a-lifetime music event.“We also did the closing ceremony, which

was an honour to be involved with and an opportunity to showcase the technical capabilities of the country,” he adds.

Although Gearhouse South Africa achieved fantastic results during the Soccer World Cup, its September and October trade was weaker than anticipated, prompting Lapid to say there had been a “hangover from the World Cup”. Lapid believes the country “has not yet felt” the full benefit of the brand SA marketing during that period.

But Gearhouse has found opportunity in other areas. Indeed, Johannesburg-based In2Structures – part of the Gearhouse South Africa Group of Companies – has been selling its Supa Dome structures to clients mainly based in the Middle East, Dubai in particular.

The group has also launched Gearhouse Splitbeam, a company providing competitive theatre specific long-term equipment rental.

“They are servicing an area of the market that we were unable to service adequately till now,” says Lapid. “Also the past year has seen a major internal turnaround to focus on client service and the implementation of checks and controls to ensure adherence to the Client Value Chain in all of our operations. We demand service from our suppliers and in turn service our clients to the best of our ability.”

The industry, he says, is maturing year-on-year. “The base of the pyramid is growing broader,” Lapid explains. “Every year there are more suppliers and more events. A robustly competitive climate is keeping us on our toes, teaching us how to reinvent ourselves and growing the industry.

“We are definitely changing with it and our ability to constantly evolve in line with, or ahead of, industry trends is something we are well known for.”

In terms of growth areas, event “greening” and carbon footprint reduction are leading the


way, he says. “Event greening and reduction of our carbon footprint with the natural progression to energy efficient fixtures and processes are big areas. Also the recession has a left a legacy of tighter budgets. We don’t work in an industry that is essential and when spending on technical, people are wanting more for less.”

To offset this, Gearhouse South Africa is working to improve and streamline its systems to optimise delivery. “The industry is upgrading services in general,” Lapid says. “Currently the major difference is in the quality delivered in the urban areas versus the standards delivered in the rural areas. My hope is that the future will hold more parity across all areas and tours across the continent will see minimal differences between cities in

terms of standards.“The more growth we see in the middle

class, the more potential consumers we will have. The events industry will continue to be strong. Digital technology such as the iPad will never replace the excitement of a live event.”

In the future, Lapid wants to see his company build on its reputation. Also, he would like to see more In2Structures portable venues in use.

He sees growth in West Africa too.But what is the secret to Gearhouse South

Africa’s success? An ability to foresee market trends and evolve to meet those needs ahead of the rest, coupled with a positive and proactive approach to raising the bar, Lapid says. “Of course most of it is due to hard work and perseverance,” he concludes. EnD

Gearhouse provided all technical elements for 2010 Bidvest

Chairman’s awards, photo zoom

Gearhouse FEATURE

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SA Mag - Issue 11

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Transcript of SA Mag - Issue 11