SA Mag - Issue 20

PEOPLE CULTURE TRAVEL PROPERTY BUSINESS WINE SPORT ENTERTAINMENT

New � inking New Possibilities Q&A with Hyundai South Africa operations director Albrecht Grundel

Taking to the skiesEast London Airport’s airport manager Michael Kernekamp talks to South Africa Magazine

� e hungry LionLion of Africa Insurance is South Africa’s first insurance company to achieve a Level 1 B-BBEE rating

Preparing for the digital switchoverAltech UEC recently opened one of the worlds most advanced set-top-box factories

ISSUE 20

PEOPLE CULTURE TRAVEL PROPERTY BUSINESS WINE SPORT ENTERTAINMENT

New � inking New Possibilities Q&A with Hyundai South Africa operations director Albrecht Grundel

Taking to the skiesEast London Airport’s airport manager Michael Kernekamp talks to South Africa Magazine

� e hungry LionLion of Africa Insurance is South Africa’s first insurance company to achieve a Level 1 B-BBEE rating

Preparing for the digital switchoverAltech UEC recently opened one of the worlds most advanced set-top-box factories

ISSUE 20

M A L E M ASUSPENDEDF R O M T H E A N C

3www.southafricamag.com

YOUTH CALL FOR JOBS, END TO POVERTYThere has been a lot to shout about this month. South Africa recorded a trade surplus of R2.5 billion in September. The Kagiso purchasing managers’ index (PMI) remained largely unchanged in October. Sales of new vehicles increased by 19.8 percent year-on-year. And South Africa’s unemployment rate declined to 25 percent in the third quarter as manufacturing and retail sales rebounded.

Are these signals that the economy may have recovered from a slowdown in the second quarter?

Perhaps.

But the youth aren’t happy. Especially when it comes to jobs.

They have taken their frustration over poverty and joblessness to the streets responding to a call by tough-talking ANCYL leader, Julius Malema, who has been demanding more jobs, better housing and other help for the poor. He also wants to nationalise the mines.

What did this action teach us? Well, the protest may have been aimed as much at infl uencing ANC economic policy as showing older leaders Malema cannot be ignored. Next year, President Jacob Zuma faces an internal party leadership vote that could determine who will be South Africa’s next president.

Enjoy the magazine!

Ian ArmitageEditor

South Africa’s next president.

EDITORIAL Editor – Ian ArmitageSub editors – Jahn Vannisselroy Janine Kelso Tom Sturrock Writers –Colin ChineryJane BordenaveJohn O’hanlon

BUSINESSAdvertising Sales Manager – Andy Ellis Research manager – Chris BolderstoneResearchers – Jon JaffreyDave hodgson Marie SmithElle WatsonLuke AshfordSales – Andy WilliamsAlan RedmondSales administrators – Katherine EllisDaniel george

ACCOUNTSFinancial Administrator –Suzanne Welsh

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

DIGITAL & ITHead of digital marketing & development – Syed Ahmad

TNT PUBLISHING CEO - Kevin Ellis Chairman - Ken hurst Publisher - TNT Multimedia Ltd

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

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848484848484 585858585858 343434343434

969696969696 2828284 www.southafricamag.com

06 NEWSAll the latest news from

South Africa

12 TRAVEL exploring the

Masai MaraAAP Travel Writer LeahmcLennan visits Kenya’sworld-famous masai maraNational reserve.

16 CULTURE Johannesburg

Motor showWhether you are a die-hard automotive freak or simply someone with a basic feeling toward cars, this was the event for you.

18 PEOPLE Julius Malema

suspended from the anc

Is this the end of his political career?

22 DUTOIT GROUP

28 STADIUM MANAGEMENT SOUTH AFRICA

34 UNITED NATIONAL BREWERIES

40 HYUNDAI SOUTH AFRICA

46 DAV PROFESSIONAL PLACEMENT GROUP

50 BOTSWANA RAIL

54 UNIVERSAL MINING AND CHEMICAL

INDUSTRIES

58 TROLLOPE MINING SERVICES

64 EAST LONDON AIRPORT

68 BKS GROUP

72 ALEXANDER FORBES

76 SWAZILAND ROYAL INSURANCE

CORPORATION

80 SWAZIBANK

84 LION OF AFRICA INSURANCE

88 ALTECH UEC

92 ZURICH INSURANCE

96 CENTRIQ INSURANCE

100 AFRIFRESH GROUP

REG

ULA

RS

FEATUR

ES


Contents22

FEATUR

ES

6 www.southafricamag.com

Lifestyle

Young South Africans took their frustration over poverty and joblessness to the streets on 27 October, responding to a call by the tough-talking youth leader of the governing African National Congress, Julius Malema, who has clashed with older party leaders over economic policy.

Police and ANC Youth League marshals kept a close watch as around 1,000 protesters gathered in Johannesburg, in what was a party atmosphere.

The protesters, who carried placards that said “We Demand Nationalisation” and “Expropriation of Land Without Compensation”, sang and danced in downtown Johannesburg and showed support for Malema, who along with five other Youth League leaders are facing ANC disciplinary hearings and may be expelled for bringing the ruling party into disrepute.

The rally was at the start of a march organised by the ANCYL to the Chamber of Mines and the Johannesburg Stock Exchange

Youth call for jobs, end to povertY

and then to President Jacob Zuma’s office in Pretoria, some 60 kilometers away.

A tall fence was erected around the stock exchange and public access was restricted.

Malema, 30, led the “economic freedom march” and held an overnight vigil. He is demanding more jobs, better housing and other help for the poor, and wants to nationalise the mines.

ANC leaders say talk about nationalising mines undermines investor confidence. Malema says whites remain privileged 17 years after the end of apartheid, and that big business largely remains in white hands.

All the latest news from South Africa

European leaders have agreed a crucial plan to reduce Greece’s debt and provide it with more rescue loans.

After marathon talks last night in Brussels, the leaders said private banks holding Greek debt had accepted a loss of 50 percent.

Banks must also raise more capital to protect themselves against losses resulting from any future government defaults.

The deal is aimed at preventing the crisis spreading from Greece to larger economies like Italy, but the leaders said work still needed to be done.

It also approved a mechanism to boost the eurozone’s main bailout fund – The European Financial Stability Facility (EFSF) – to about 1 trillion euros.

The framework for the new fund is to be put in place in November.

Markets around the world have reacted well to the news.

eu leaders agree debt deal


Eurozone crisis

china hopes eu will stick to bailout

China has said that it hopes the Eurozone will stick to a bailout plan reached at October’s debt crisis summit, after Greece called a surprise national referendum on 1 November.

Foreign ministry spokesman Hong Lei said China had “taken note” of developments.

World markets have plunged after the shock announcement that Greece will hold a vote on the package of measures agreed last week to try to rescue the eurozone from a worsening debt crisis.

Europe has approached China - which is already a major holder of European debt – to help finance an expansion of its bailout fund – the European Financial Stability Facility (EFSF).

China has so far been non-committal about what help it could provide.

“China is ready to explore ways to fight against the (debt) crisis with the EU,” Hong said. “China has been and will continue to be a major investor in the EU market.”

south africa records trade surplus in september

South Africa has recorded a trade surplus of R2.5 billion in September on increased exports of precious and semi-precious stones and mineral products.

The South African Revenue Service said that exports rose by 11.1 percent month-on-month to R67.8 billion, while imports increased by a negligible 0.8 percent to R65.3 billion.

It is the first surplus registered by South Africa in three months.

Trade


Travel

Qantas passengers have again taken to the skies after Fair Work Australia (FWA) ordered all industrial action to be terminated.

Qantas’ decision to ground all flights from 29 October left nearly 70,000 people stranded.

The airline’s defiant chief Alan Joyce said 31 October that Qantas would return to “business as usual” as soon as possible.

FWA made its ruling terminating all industrial action between Qantas and the Transport Workers Union (TWU), the Australian International Pilots Association and the Australian Licensed Aircraft Engineers Association (ALAEA) following a meeting in Melbourne.

It gave the parties 21 days to resolve their differences.

Joyce apologised to all the airline’s customers

Qantas back in the air following strikes

million a day, it saved the airline in the long run, he said.

“I’ll make whatever tough decisions are needed to be made in order to ensure the survival of this great company,” he said.

The TWU says it hopes to settle the dispute but may challenge the ban on strike action.

“If the company negotiates in good faith, which is what we’re expecting the company to do, the next 21 days we will not be taking industrial action,” TWU national secretary Tony Mr Sheldon said.

“We are also considering with our legal advisers whether we should appeal this decision.”

and said he hoped the backlog could be cleared within 24 hours, adding he believed the Qantas brand would recover.

“I have every confidence that we will recover back to a 65 percent domestic market share and recover internationally,” he said.

Joyce added that it had been the right decision to ground the airline in a bid to stop the ongoing industrial action that was costing the airline A$15 million a week.

Although grounding all 108 planes had cost A$20


new vehicles sales up 19.8% in october Sales of new vehicles increased by 19.8 percent year-on-year last month to 36,826 units, according to the latest stats from the National Association of Automobile Manufacturers of South Africa (Naamsa).

“October 2011 aggregate industry domestic sales had improved by 8,309 units or 18.9 percent to reach 52,338 vehicles from 44,029 vehicles sold during October last year. Total year to date domestic sales in calendar 2011 remained 16.5 percent ahead of the corresponding ten months in 2010. October 2011 export sales at 25,860 vehicles had registered a marginal decline of 712 units or 2.7 percent compared to the 26,572 units exported in October last year,” Naamsa said in a statement.

“Overall, out of total October 2011 industry reported sales of 52,338

Business

vehicles, 77.6 percent or 40,629 units represented dealer sales, 14.2 percent represented sales to the car rental industry, 5.2 percent sales to government and 3.0 percent represented industry corporate fleet sales,” it added.

A major contributor to the ongoing strength in the new-car market in recent months was the continued above-average demand by car-rental companies, with the car-rental industry during October 2011 accounting for 19.4 percent of total new-car sales.

“The new-car market for 2011 is now expected to show an improvement of between 16 percent and 18 percent on the 2010 figures,” Naamsa said.

“Over the medium term, domestic sales should continue to register growth, but probably at a more subdued rate, in line with the overall performance of the South African economy,” it added.

jobless rate declines to 25% in Q3South Africa’s unemployment rate declined to 25 percent in the third quarter as manufacturing and retail sales rebounded.

It is a signal that the economy may have recovered from a slowdown in the second quarter, where the unemployment rate increased by 174,000.

The jobless rate fell from 25.7 percent, Statistics South Africa (Stats SA) said.

The number of people in work rose 193,000 to 13.3 million. This is the highest increase observed since the recession in 2009, Stats SA said and was mainly driven by the growth in the formal sector, which grew by 2.6 percent.

The informal sector remains turbulent quarter-to-quarter. It contracted by 2.4 percent or 53,000 jobs after an increase of 34,000 jobs in the previous quarter.

Despite a decline in unemployment in the third quarter, 4.4 million people remain unemployed and just over 3.0 million have been unemployed for a period of a year or more.

60.2 percent of the job seekers do not have matric.

Last month young South Africans took their frustration over poverty and joblessness to the streets, responding to a call by tough-talking ANCYL leader, Julius Malema, who has been demanding more jobs, better housing and other help for the poor. He also wants to nationalise the mines.


Money Energy

South African President Jacob Zuma attended the G20 Summit in Cannes, France, from 3 to 4 November, where he promoted the need for enhanced growth, jobs and infrastructure development on the African continent.

He was accompanied by Finance Minister Pravin Gordhan.

According to a statement by The Presidency, Zuma called for global governance reforms to reflect the interests of the Africa and the developing world. The Presidency said that South Africa used the summit to call for strong action by Europe to implement already announced measures to prevent a global recession.

“As a small open economy, we pushed for better response measures to curb currency volatility,” Zuma said.

Issues discussed at the summit included the global economic situation; reforming the International Monetary Fund (IMF); strengthening the financial sector; as well as the volatility of commodities markets and their effect on food prices.

“We should refocus our attention (on) promoting growth that is inclusive in an effort to address poverty,” Zuma said.

“The reform of international financial institutions remains a critical point for South Africa.

“On IMF reform, South Africa has a specific objective: to increase the voice and participation of sub-Saharan Africa and the creation of a third chair for sub-Saharan Africa.”

SA urged the summit to agree on measures to help African countries transition to a greener economy.

The World Bank has approved an additional loan worth US$250 million (some R2 billion) for Eskom’s renewable energy support programme. The money will be used to help Eskom develop its concentrating solar power plant near Upington and its Sere wind power plant.

The loan is funded by the World Bank’s Clean Technology Fund which promotes scaled-up financing for demonstration, deployment and transfer of low-carbon technologies with significant potential for long-term greenhouse gas emissions savings.

“The loan will help Eskom to implement two of the largest renewable energy projects ever attempted on the African continent,” the bank said in a statement.

Eskom, a major supplier of energy to South Africa and neighboring countries, is keen to reduce its carbon footprint.

The state-owned utility is spending billions of dollars to build and upgrade existing coal-fired power plants to meet immediate energy needs, and wants to diversify the energy mix toward cleaner sources of energy.

Last month, Eskom signed two loan agreements worth US$365 million with the African Development Bank to develop the Sere and Upington projects.

Eskom said it hoped to begin construction of the Sere wind project early next year.

The World Bank came under fire last year for approving a US$3.75 billion loan for the development of a coal-fired plant in South Africa, but Eskom said the project was necessary to ease the country’s chronic power shortages.

Zuma heads for g20 summit, seeks help to curb volatile currencY

world bank approves second eskom loan


Sport

henrY Quits new Zealand

role

sponsors concerned

about csa ‘brand integritY’

Graham Henry has stood down as New Zealand coach, nine days after guiding the All Blacks to a 8-7 World Cup final triumph over France.

He steered the All Blacks to 88 wins in 103 tests.

“I’ve had enough, it has been a privilege to be involved in the All Blacks. I’m very proud of what they’ve done over the last eight years,” the 65-year-old said.

Henry said he would be making no immediate announcement on his future plans.

The allegations of corruption in South African cricket have shaken the confidence of potential sponsors who have expressed their concern about Cricket South Africa’s (CSA) brand integrity to the sports ministry.

South Africa are currently playing Australia in a one-day and Twenty20 series, with no sponsors.

CSA has secured sponsorship only for the Proteas Test and one-day teams. There is believed to be a sponsor for the upcoming Test series that starts in Cape Town on November 9, but this has not been announced yet.

CSA fired its president for a second time after he challenged CEO Gerald Majola for receiving allegedly irregular bonuses from the Indian Premier League (IPL) two years ago and the turmoil has seriously affected its reputation.

Sponsors once lined up to be associated with CSA and the Proteas, but after major sponsors Standard Bank and mobile phone giant MTN withdrew, new sponsors have been very reluctant to come forward.

Potential sponsors and their agents met the Department of Sport and Recreation to discuss their concerns over the brand integrity of CSA’s properties.

The meeting with Gert Oosthuizen, deputy minister in the Department of Sports and Recreation, was arranged by SAIL, a rights commercialisation agency, in the wake of an announcement by sports minister Fikile Mbalula a fortnight ago that he would institute an inquiry into the affairs of CSA.

Financial services company Momentum also attended the meeting, according to Business Day.

A report by auditors KPMG is believed to have pointed to Majola as being in breach of the Companies Act on several counts for bonuses paid to him and other CSA staff by the organisers of the 2009 IPL and Champions Trophy, which were held in South Africa.

CSA has persisted in refusing to make the report public. Acting director-general of the sports ministry, Sumayya Khan said sponsors were concerned.


Travel Writer Leah McLennan visits Kenya’s world-famous Masai Mara National Reserve.By Leah McLennan, AAP Travel Writer

exploring the exploring the masai maraexploring the masai maraexploring the

W illiam in the driver’s seat turns around and

says to us: “They’re mating, get a photo”.

Not an everyday comment, but we are, after all, in Kenya’s world-famous Masai Mara National Reserve.

I’m in an open-top minibus in an area teeming with lions. A mixture of fear and excitement is pushing stress hormones through my body and lifting my heart rate.

Exploring the Masai Mara TRAVEL


We are smack-dab in the middle of a pride of about 20 tawny beasts. On one side of the bus there is a group of females lazing about with their cubs. On the other side a male, his face encircled with a huge brown mane, sniffs a lioness.

“If we stay here they will mate again in another 15 or so minutes,” says William, who has an in-depth knowledge of African animals’ behaviour and social structure.

The four of us in the safari bus sit tight and eventually the large cats summon the energy to again “make love”, a euphemism for what could otherwise be described as one-minute of rough, frantic movement followed by a few loud, elongated groans.

“Look the zebras are mating too,” Maree, an Australian on her honeymoon, says, pointing into the distance.

All of a sudden, it’s like we’re on the set of the BBC’s Planet

Earth series with David Attenborough.We might have missed the Great

Migration but this Great Copulation is just as entertaining.

Intimate encounters with or between the “big fi ve” - lion, leopard, elephant, buffalo and rhino - are just some of the experiences you can expect in the Masai Mara, a sprawling, unfenced savannah grassland in the country’s remote southwestern corner. This predator-packed park is the northern continuation of the Serengeti National Park in Tanzania.

Our home for the next two nights is the Sarova Mara Game Camp, a property with 73 tents, a restaurant and swimming pool encircled by a 24-hour electric fence that stops the animals popping in to say hello.

Graceful antelopes the size of Chihuahuas, called Dik-diks, nibble on the grass outside our Club Tent. “If Dik-dik dead then lion here, if Dik-

dik ok then you should be fi ne,” Paul, a security guard, says half jokingly as he places our bags in the “tent”, which has an ensuite bathroom, king-size bed, permanent roof and heavy wooden doors.

After unpacking I sit outside on the balcony, with its uninterrupted bush views, and keep a close eye on Kenya’s version of the canary in the coalmine.

This camp provides all the elements to optimise the chances of a perfect night’s sleep - a mosquito net-covered bed and relaxing neutral-coloured furnishings - but I don’t know how much sleep I will get as my nerves are a mess.

I’m overwhelmed by irrational fears - from being trampled in my bed by an elephant to being whisked away by Somali pirates (though this is highly unlikely).

The affable Paul chuckles infectiously when I tell him of my fears


and I show him the tiny pocket knife I’ve brought along to defend myself from predators and pirates.

A wine should calm my nerves and help me sleep, I think, so I make a bee-line for the main lodge, an attractive high-ceiling dining room that serves a buffet full of meats and seafood and the camp’s own vegetables and herbs.

After sharing a bottle of South African wine with my travel companion I turn in early, hoping that I won’t come face-to-face with any animals before we start tracking them at 6am.

Thankfully the only animals I spot are in my dream and I bounce out of bed at dawn, eager to head out and wake up the animals. There’s no need to wake up the lions though, they’ve been hunting all night and are quite lazy by the time we fi nd them.

We’ve easily ticked off the big fi ve, so William goes in search of hippopotamus and stops the vehicle near a creek where a pod wallow in the water.

We get out of the car to

have a closer look. We watch the fat, jolly creatures from the safety of the top of the river bank, while a group of French tourists bravely (or stupidly) venture down to water level.

“The hippo is considered the most dangerous animal in Africa,” William says.

I glance back at the bus and plan my emergency evacuation should a rogue hippo emerge, bellowing loudly, swinging its head like a giant sledgehammer and coming towards me with its massive open mouth full of slashing teeth.

“The hippo is extremely aggressive, unpredictable and unafraid of humans,” William continues.

“And the last time I was here a dozen or so crocodiles were just there sunbaking on the rocks.”

That’s it, I’m off. I fi nd myself back in the bus, having returned without even knowing how I got there.

Our four drives over the two days in the Masai Mara are fi lled with highlights. There’s the moment we drive


through a creek and fi nd ourselves temporarily bogged next to a pride of lions. I could have reached out and tickled their ears.

Then there’s the moment we spend watching a herd of larger-than-life elephants, as well as zebras, gazelles, jackals, ostriches and warthogs, against the backdrop of the setting sun.

The Masai Mara delivers some of the best animal viewing in Africa and on our third morning in Kenya I’m reluctant to leave. But the safari must go on and after an early breakfast we say goodbye to Paul and the other staff at Sarova Mara. We’re off to Lake Nukuru, the home of rhinos and waters that are coloured pink with the fl amingo population.

“Don’t forget to send me a baby kangaroo when you get home to Australia,” Paul says as we pile into the van and William hops back into the driver’s seat.

“I will send you a baby Dik-dik to keep you safe from the lions,” he says with a chuckle. END

Exploring the Masai Mara TRAVEL

WHEN TO GO: While many tourists fl ock to Kenya's Masai Mara National Reserve during the high season from July to October, to witness the wildebeest migration, the winter months are also a great time to go.

MORE INFORMATION: www.magicalkenya.com

Editor’s comment: If you've ever dreamed of taking a safari in east Africa now might be a good time to go. Kenya's tourism industry is facing tough times as it tries to prevent a drop in visitor numbers following a series of attacks on travellers and aid-workers near the Somali-Kenya border.

T he highly anticipated Johannesburg International Motor Show kicked off last month on

high octane, with lovers of all things motoring heading to the Nasrec grounds to see what manufacturers had in store for them this year.

And what a treat they got.Motoring manufacturers pulled

no punches, aiming to ensure their offering stood out.

They kept expo-goers enthralled in a bid to drive traffic to their dealerships.

Audi, Mini and Land Rover drafted in their celebrity ambassadors to give

their brands a bit of star quality.And audiences liked what they saw.Things got into full swing on Saturday,

October 8 as the public made its way through the Expo Centre gates for the first of nine days after the first two days had been reserved for the media and VIP guests.

A number of exciting concept cars and new models were unveiled during the first two days and underlined the fact that this is the biggest and best motor show in South Africa.

Was there a showstopper? Well, yes - the incredible Chevrolet Miray concept had to be the winner. The carbon fibre clad beast is powered by electric motors as well as a 1.5-litre


J O h A N N E S B U R g M O T O R S h O W

Whether you are a die-hard automotive freak or simply someone with a basic feeling toward cars, this was the event for you.

By Ian Armitage

turbocharged four-cylinder engine. It was flown to South Africa straight from the Frankfurt Motor Show where it was also a big hit.

This was not only a show confined to passenger cars though and there were large displays of motorcycles, scooters, trucks and buses as well as selection of accessories and components.

Of course, South Africans love their bakkies. The Toyota Hilux is the best

seller in the market overall and there were numerous models on display, suiting almost every requirement for business or leisure.

Volkswagen also got in on the act with its Amarok.

The bakkies market has changed considerably in recent years with the advent of the ‘lifestyle’ bakkie - the once simple bakkie is no longer simple.

Of note was the budget Chinese offering from Foton.

Johannesburg Motor Show Overview CULTURE


The Ford Ranger and Mazda BT-50 also caught the eye, while Suzuki South Africa constructed a huge stand with an outdoor extreme theme, complete with a tree house as well as its entire range of passenger cars, boats and off-road vehicles.

In all the show was a huge success.

Website: www.jhbmotorshow.co.za END

A NC Youth League president Julius Malema has been suspended from the ruling party for fi ve years.

The ANC’s national disciplinary committee announced that it had found Malema guilty of misconduct and sowing division in the party. He was asked to step down as youth league president.

Malema was not in Johannesburg when his suspension was announced, because he was writing an exam at the Polokwane campus of the University of South Africa.

His statements on Botswana were considered “reckless” and brought the ANC into disrepute, the party’s national disciplinary committee chairperson Derek Hanekom said.


By Ian Armitage

Julius MaleMa suspended froM the anc for fiVe Years IS ThIS The eND of hIS PoLITICAL CAreer?

Earlier this year, Malema said the youth league would send a team to Botswana to consolidate opposition parties and help bring about regime change there. He apologised for the remarks, but the damage had been done – it caused serious diplomatic embarrassment for the ANC.

Malema was also found guilty of interrupting a meeting of ANC offi cials, which included President Jacob Zuma.

That guilty fi nding related to Malema, ANCYL deputy president Ronald Lamola,

treasurer general Pule Mabe, secretary general Sindiso Magaqa and deputy secretary general Kenetswe Mosenogi.

On that charge, the group was suspended from the ruling party for two years. The sanction was suspended for three years.

Malema was found not guilty on a third charge of inciting racial hatred and inflaming divisions in the country.

Once a close ally of President Zuma, Malema has become one of his strongest critics, accusing him of ignoring poor South

Julius Malema PEOPLE


Africans who helped bring him to power.

His guilty verdict boosts Mr Zuma’s re-election bid. Malema wants him replaced as party leader ahead of the 2014 elections, but it is now diffi cult to see how he could infl uence or affect the ANC leadership contest next year.

It has been reported that Malema will appeal against the ANC’s decision to suspend him. He is able to appeal, but was already suspended for his statements on Zimbabwe (Malema, remember, declared the ANC’s support

for President Mugabe at a time when President Zuma was mediating between the country’s coalition members).

Following Malema’s suspension, an ANC spokesperson said: “Disciplinary procedures are not meant to end anybody’s political career, they are meant to correct behaviour.”

The ANC is to celebrate its 100th anniversary in 2012 and offi cials appeared keen to show that the party will not be dictated to by a young, outspoken, controversial and, often, unruly leader.

Malema is a hugely divisive fi gure. He has previously been found guilty of using hate speech by singing an anti-apartheid song Shoot the Boer [white farmer], which has since been banned.

He once vowed to “kill for Zuma”.In 2009, Malema launched a campaign

to nationalise mines and expropriate white land without compensation, which was consistently contradicted by leaders of his own party and ridiculed in the press and by the industry.

He was not a force to be reckoned with then.

This is now. In September, the one-time “buffoon” of South African politics was named as one of Africa’s 10 most powerful young men by international business magazine Forbes.

“The ANCYL wields enormous power in South African politics, and played a pivotal role in the election of incumbent president, Jacob Zuma, during the 2009 presidential elections,” Forbes said.

That statement was not far off the mark. Malema came from nowhere and, in just three years since his election in 2008 as ANC Youth League president, inserted himself at the very centre of debate about South Africa’s future political direction.


BIOJUlIUS SEllO MAlEMA

Julius Sello Malema was born 3 March 1981, in Seshego. He is best known for his controversial statements and speeches, and once intense support for African National Congress president Jacob Zuma. Malema, a Pedi, was raised by a single mother, a domestic worker in Seshego township, Limpopo. According to varying reports he joined the Masupatsela (”Trailblazers”) pioneer movement of the African National Congress at age nine. His school career was undistinguished and he failed two high school grades as well as several subjects in his fi nal secondary school examination. In fact, his marks were so low that they later attracted signifi cant media attention. Malema was elected as both chairman of the Youth League branch in Seshego and the regional chairman in 1995. In 1997 he became the chairman of the Congress of South African Students (Cosas) for the Limpopo province, and in 2001 he was elected as the national president of that organisation.He was elected as the president of the ANC Youth League in April 2008, in a close race at a national conference held in Bloemfontein. The election – and the conference – was characterised by what Malema himself later described as “unbecoming conduct”. Allegations of irregularities in the polling procedure saw the conference adjourned shortly after the election results were announced. It was resumed only in late June, when Malema’s election was offi cially accepted.

In October, Malema led a youth league march to persuade the government to seize mining and called for “economic freedom”. The protesters, who carried placards that said “We Demand Nationalisation” and “Expropriation of Land Without Compensation”, sang and danced in downtown Johannesburg and showed strong support for Malema. It showed it could not be ignored. On the two touchiest issues in South African politics – macro-economic policy and race relations – he is the central player.

What the ruling party has done with this ruling is to draw a line in the sand. This is in many ways Jacob Zuma’s victory in a long and bruising fi ght.

But the question remains - will Malema’s suspension save Zuma from his detractors within the broader structures of the ANC? They want to see him vacate the top job come next year when the party holds its leadership election.

Malema was, at one point, considered a president in waiting. Is that now history? END

Julius Malema suspended from the ANC PEOPLE

In September, the one-time “buffoon” of South African politics was named as one of Africa’s 10 most

powerful young men by international business

magazine Forbes



A N U N W A V E R I N g F A I T h I N T h E


A N U N W A V E R I N g F A I T h I N T h EF A I T h I N T h E

The DuToit Group is a leading South African

producer and distributor of fruit and vegetables.

Pieter du Toit, Managing Director of the Dutoit

group: Marketing, talks to Ian Armitage.

T he name Dutoit is synonymous with quality – just ask its customers, which include the likes of UK supermarket group Asda. The company exports

about 60 percent of all its produce and 15 percent of that - around 10,000 tonnes of apples and pears - goes directly to the Walmart-owned fi rm. It has been supplying Asda for more than a decade.

Business Leader of the Year in the 22nd Business Leader of the Year awards run by Die Burger and the Cape Town Chamber of Commerce, Dutoit Group is without doubt a leading South African player in the production and distribution of fruit and vegetables.

“We feel very honoured to be recognised,” says Pieter du Toit, Managing Director of the Dutoit Group: Marketing at Western Cape business Dutoit Group, which employs 8,000 people in high season. “The previous winners have typically been from the corporate world – this was the fi rst time, as far as we are aware, that it has gone to an agricultural business.”

As South Africa’s leading fruit and vegetable producer, Dutoit Group, has, over a period of time, taken steps to position this family-owned business for full commercialisation. This included the appointment of core people to assist the Du Toit Family and the Dutoit Group’s management during the continual process of transformation.

“We have three divisions – Dutoit International, Dutoit Agri and Dutoit Invest,” Du Toit says.

“We are built by people who have an unwavering faith in the future.”

According toDu Toit, who grew up on the family farm in the Ceres region, the company was established in 1893.

Over the years it has introduced cutting-edge technology, innovation and high levels of client services, which fully integrates client needs in the production and packaging process.

Dutoit Group produces, packs and markets more than 15 million units of fruit and vegetables annually in both the local and international market.

DuToit Group FEATURE


“We have extensive fruit and vegetable growing divisions, cold storage and packing facilities,” says Du Toit. “Our farms and business units are managed on a decentralised basis and we specialise in integrating the production process with the needs of our customers.

“We grow, pack, market and distribute quality agricultural products - apples, pears, nectarines, onions, potatoes and sweet potato,” he adds.

The key to Dutoit’s success is its supply chain and partnership model.

“We actively seek investment partners to join with us in building a superior supply chain,” says Du Toit.

The main criteria for prospective partners are a deep passion for fresh produce and “a specific field of expertise and interest”.

“The Dutoit Group offers market access through its Dutoit and Gydo brands and marketing and distribution team. We offer technical support through a team of experts in the respective disciplines of fruit production and handling. We offer financial support through access to competitive financial instruments. We aid with business development. We mentor to drive entrepreneurship and create wealth. We also offer BEE initiatives through the Crispy Group,” says Du Toit. “We have an integrated development model in the sense that we go from the seed through to planting, picking, production, pack-houses, shipping, etc. We don’t own shipping, but we try to negotiate and establish partners with knowledge to deliver to the customer a good business opportunity in our products.

“It is all about keeping costs down and making it simple – the process of delivery simple.”

A great example of this partnership model in practice is Cape Fruit Coolers, which Du Toit is chairman of. It is a joint venture between Maersk Group, Goede Hoop Sitrus, Ceres Koelkamers and Dutoit Group, which offers a pallet cooling service for the fruit exporters that make use of the Cape Town harbour. “Cape Fruit Coolers prides itself in perfect protocol handling coupled with personal service levels unheard of in this very important part of the cold chain,” says DuToit.

The Dutoit Group has a 37.5 percent share in Cape Fruit Coolers, which recently increased its plant in the Killarney Yarns Industrial area by 30 percent. “It is to meet the growing needs of fruit growers to meet the shipment of their products,” Du Toit explains. “In a highly competitive market environment, Cape Fruit Coolers team is positive that this expansion will make export more competitive. The expansion includes new inspection facilities.

“Cape Fruit Coolers plays an important role in the value chain from farm to store shelves. They help to keep product fresh and enable it to enjoy a longer shelf life.”

Cape Fruit Coolers is an independent organisation with the sole aim of servicing the fruit export industry. It is a world-class cold



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storage facility, making use of cutting edge technology and state-of-the-art refrigeration facilities.

Dutoit’s growth target is to “double” the company every fi ve years. It has been successful in that over the last 50 years, according to Du Toit. “Obviously it gets more complicated the bigger you get. That is still our target and we believe we have got policy and strategy in place to do that.

“We will look to maximise our existing resources, while seeking out new partners. I think this partnership approach is unique in the industry – it certainly isn’t common. Agricultural land all over the world, but especially SA is a big investment. We can help partners maximise their investment.

“Of course the big uncertainties in SA these days are about land reform policy from Government. But you have to accept policy change as the rules of the game; we concentrate on what we can control and that is that we need to be internationally competitive and our customers want us bigger – and we will give them that. We are looking to grow. We want to be run as a commercial, internationally competitive company.”

The rand’s strength had made the past year diffi cult for the group - the currency’s 15 percent growth in the past year, with a fi ve percent growth in operational costs, had resulted in a 20 percent hit on the com¬pany’s income. Du Toit says labour makes up 40 percent of the company’s operational costs, and water and electricity made up another substantial contribution.

“But in spite of tougher times, the company has remained profi table - the operation is slick,” he says. “And we have a wealth of expertise and knowledge to draw on.

“Prices are set according to a seasonal programme and then reconfi rmed on a three-week basis,” Du Toit adds. “If price agreement can not be reached with a retailer for instance, the volumes are readjusted and



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14

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the fruit redirected elsewhere.”Up next is growth on the African

continent. Dutoit is the apple of Walmart’s eye (through it’s work with Asda, which it has been supplying with fruit and vegetables since 1997 when the South African agricultural market was deregulated).

“Our long-standing relationship with Asda has given us stability in tough times and, also, it means that where Walmart goes, our fresh produce could follow.

“We are looking to expand in Africa, the Middle East and the Far East. These are markets that are very interesting to us.

“We are very positive about our position. We are in a good production area and are in a position to capitalise on new opportunities,” Du Toit concludes. END


What is post-World Cup life like for Soccer City? South Africa Magazine asks Jacques grobbelaar, Director of Stadium

Management South Africa, how he plans to fill seats.By Ian Armitage

A lasting

T he Soccer City Complex and its main FNB Stadium,

formerly known as Soccer City, in Soweto is a world-class sport venue. Renovated specifi cally for the 2010 FIFA World Cup, it is no “white elephant” and its success as a venue looks set to continue.

The 94,000-capacity stadium, also referred to as

“The Calabash”, hosted the opening game of the 2010 World Cup as well as the fi nal between Spain and the Netherlands, both sell-

outs and huge successes. But the question following

the event was, what would this and the other massive stadiums be used for next?

Stadium Management South Africa already had some answers, having spent months before the tournament planning for life after the World Cup and securing new contracts.

The forward planning obviously paid off.

“The FNB Stadium -- built in the late 1980s specifi cally for soccer, on the brink of Soweto -- hosts big sport games like the Soweto Derby

between Orlando Pirates and Kaizer Chiefs as well as international football and rugby matches,” says Jacques Grobbelaar, Director of Stadium Management South Africa, which manages the Soccer City Complex, FNB Stadium, Soweto’s Orlando and Volkswagen

legacyA lasting legacyA lasting

Stadium Management South Africa (Pty) Ltd FEATURE


Dobsonville stadiums and Rand Stadium in southern

Johannesburg. “The Complex and the main FNB stadium is a fi rst world stadium, with a super atmosphere.”

In addition to soccer and rugby, world-

famous entertainers also perform at the venue.

“We’ve hosted the 360 degree U2 concert, Neil Diamond, Coldplay and more recently Kings of Leon,”

Grobbelaar confi rms. “So, although there were initial concerns that the World Cup stadiums wouldn’t be used to their full potential, this is defi nitely not the case with

the stadia we manage.”Tournament CEO

Danny Jordaan promised South Africans that the new facilities would leave a legacy for generations to come.

“To ensure a lasting legacy and the commercial viability of the stadiums, they will be used for both rugby and soccer,” Jordaan said before the World Cup.

“This country has also used sports stadiums for major political rallies, concerts and church events. They can, therefore, also be used for other events outside of sport,” he added.

According to Grobbelaar, Stadium Management South Africa has a 10-year thoroughly thought out plan



STAdIUM MANAGEMENT SOUTH AFRICA’S PORTFOlIO:

THE SOCCER CITY COMPlEX, FNB STAdIUM (NATIONAl STAdIUM)Situated off Nasrec Road on the outskirts of Soweto, the 94,000 capacity FNB Stadium hosted the opening ceremony, opening match, four fi rst-round matches, one second-round match, one quarter fi nal and the fi nal of the 2010 FIFA World Cup.

ORlANdO STAdIUMDemolished and rebuilt from scratch, the new Orlando Stadium, in Orlando East, Soweto, was one of the training venues for the 2010 FIFA World Cup. The stadium houses 40,000 seats, 120 hospitality suites, 2 VIP suites, One VVIP suite, Conference facilities, a Gymnasium, and a 200-seat auditorium.

vOlKSWAGEN dOBSONvIllE STAdIUMTucked away in the township of Dobsonville is one of Soweto’s famous football stadiums, the Volkswagen Dobsonville Stadium. Situated on Main Road, between Montlahla and Majova streets, the stadium has underwent refurbishments to the tune of R69 million in preparation for the 2010 FIFA World Cup.

RANd STAdIUMOne of Johannesburg’s oldest stadiums, Rand Stadium, underwent a R76 million revamp in preparation for the World Cup. Located just a few kilometres from the central business district and a stone’s throw from the Turffontein Racecourse, Rand Stadium has a contemporary design and a highly technical nature. A roof covers the 3,000 spectators who can be accommodated in the grandstand and houses a total of 25,000 fans.

Johannesburg. “The Complex and the main FNB stadium is a fi rst world stadium, with a super atmosphere.”

and rugby, world-famous entertainers also

recently Kings of Leon,”

“So, although there were initial concerns that the World Cup stadiums wouldn’t be used to their full potential, this is defi nitely not the case with

2 VIP suites, One VVIP suite, Conference the stadia we manage.”

Danny Jordaan promised South Africans that the new facilities would leave a legacy for

legacy and the commercial

for the Soccer City Complex. “Our advantage is that Soweto is home to South African football’s biggest teams, Orlando Pirates and Kaizer Chiefs.”

The Soccer City Complex is an obvious venue for Bafana Bafana games and, Grobbelaar says, Stadium Management South Africa is currently in talks with international music performers. “We have been given full responsibility to run the Stadium, which is owned by the City of Johannesburg, and, I think we are doing a great job,” he explains. “Perhaps our biggest problem is that there are just too many events , but it is a good position to be in.”

Stadium Management South Africa receives no funding from the City of Johannesburg for maintenance. It accepted full financial responsibility of the venue and Grobbelaar doesn’t have any concerns about future sustainability. “We know that the stadium will be utilised,” he says. “Stadium Management South Africa is the most dynamic and capable team to manage flagship sport venues and that is exactly why the City of Johannesburg has appointed us as the official management company for the Soccer City Complex, FNB Stadium, Orlando, Rand and the Volkswagen Dobsonville stadiums.”

We have been given full responsibility

to run the Stadium, and are doing a great job


Grobbelaar says a large percent of the management group’s profit is ploughed into community development projects around Johannesburg, while the rest is held back for future development and maintenance. “We are committed to the community and making sure that our venues are managed in the most dynamic and competent way.”

Stadium Management South Africa was a recent winner at the Stadium Business Awards 2011. Barry Pollen, Director of Stadium Management SA attended the awards ceremony and presented the firm’s strategy for delivering a legacy for the Soccer City Complex. “The judging panel was amazed this year by the incredible levels of commitment, ingenuity and above all passion behind the delivery of outstanding venues and experiences for fans,” said judge Michael Bolingbroke, COO, Manchester United FC.

To learn more about Stadium Management South Africa and its fabulous sport venues visit www.stadiummanagement.co.za. END



We know that the stadium will

be utilised. Stadium

Management South Africa is the most

dynamic and capable team to manage flagship

sport venuesJacques grobbelaar,

Director

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South Africa Magazine profiles South African sorghum beer producer, United National

Breweries (UNB).By Ian Armitage

Sorghum beerS A ’ S L E A D I N g

producer

U nited National Breweries (SA) (Pty) Limited (UNB) engages in

the manufacture and sale of Sorghum beer (Umqombothi), an opaque beer made from sorghum grain.

Umqombothi is the core business of UNB. It produces and distributes it in five breweries and numerous distribution depots strategically situated throughout South Africa. UNB was formerly known as National Sorghum Breweries, was incorporated in 1970 and is based in Midrand.

“Although the company was registered as early as 1970, United National Breweries (SA) (Pty) Ltd. was re-structured and revived in 1996,” the company’s website says, detailing the company’s interesting past. “It has a

United National Breweries FEATURE


rich and varied history and started out as scattered breweries under the control of various Development boards, Municipalities and Management boards. Decades earlier, various breweries that brewed for the local consumers in the municipalities and development areas were amalgamated under control of IDC by directive of the Government.

“This later gave rise to one of the first black economic empowerment companies in South Africa under the name of National Sorghum Breweries (NSB). Although the formation of this group was huge step forward for the Traditional Beer industry in South Africa the transition was not seamless and NSB ran into financial trouble. A global tender was advertised for investment and management assistance

and the UB Group of India became stakeholders in 1996. It also managed to take over the business of the traditional beer subsidiary of SAB, TBI in 2000.”

It adds: “UNB is a professionally managed company with employees of diverse backgrounds and talents. The early recovery and later growth objectives united the different teams into an effi cient unit working for a turn around of fortunes they were faced with.

“The nature of traditional beer in that it is an actively fermenting product with a very limited shelf life that necessitates on-the-ground and hands-on management requiring a decentralized operational base. UNB operates in this decentralised fashion with centralised strategic, fi nancial and corporate controls.”

UNB’s mission is to retain and consolidate its position as a leading South African manufacturer and marketer of Sorghum beer and alcoholic beverages, associated products and services, through “profi table operations, to extend the cause of Black Economic Empowerment and enhance the value for shareholders.”

Its Phelindaba Brewery is UNB’s largest sorghum brewery with a production of nine to ten million litres monthly, averaging 350,000-375,000



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UNB is a professionally

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litres per day, distributing and selling Umqombothi in northern Gauteng and all of the provinces north, west and east of it up to the borders of Botswana, Zimbabwe, Mozambique and Swaziland. The success of this mammoth operation is due to the enthusiasm of the entire Phelindaba team led by the No-Nonsense Mr. Pierre van der Vyver, Sr. Vice-President-Operations.

“Beer has many names, from Cerveza in Spanish, Pia in Hawaii to Utshwala in South Africa,” it adds.



Beer is defined as an alcoholic beverage that is produced by

brewing and fermenting of starches derived from cereals. It is differentiated from other fermented alcoholic products

that use non-starch raw materials such as wine, which main ingredient is grape juice,

and mead, which is mostly comprised of honey

“The word Beer has its roots in the Latin ‘Bibere’, meaning ‘to drink’ and was simply named ‘The Drink’. Passionate Beer drinkers today will almost certainly agree that there is just one drink. Cultures across the globe seem to have started brewing beer independently and beer is theorised to be the glue that gave the critical mass to the agricultural revolution that started around 10,000 years ago and caused the formation of small cooperative communities forming larger economic alliances leading to the domination of regional cultures.

“Beer is defined as an alcoholic beverage that is produced by brewing and fermenting of starches derived from cereals. It is differentiated from other fermented alcoholic products that use non-starch raw materials such as wine, which main ingredient is grape juice, and mead, which is mostly comprised of honey.

“According to analysts, beer is also the oldest and most consumed alcoholic beverage and the most popular drink worldwide after water and tea.”

Today, competition is fierce - there many different types and brands of beer, with global companies buying out strong regional brands to try and achieve market domination. “UNB also caters for a niche market, for consumers who cannot tolerate the gluten content of mainstream beers that use wheat, barley and rye,” UNB’s website says.

UNB is Sorghum’s champion. It describes the beer as the “mother of all beers”.

“Sorghum Beer is an unfiltered alcoholic beverage made according to the different recipes that survived the long journey from mother to daughter over thousands of years as it’s recipe and use migrated down from North Africa to Central and Southern Africa with tribes moving down to seek a better life,” UNB’s website says.

United National Breweries is the leading South African manufacturer and distributor of sorghum beer. END


Hyundai South Africa operations director Albrecht grundel talks brand awareness, reliability, business, style and strategy in an exclusive interview with South Africa Magazine. By Ian Armitage

A ssociated Motor Holdings, a division of Imperial Holdings,

announced in April 2000 that it had signed a distribution agreement with Korea’s Hyundai Motor Company to import and distribute of Hyundai vehicles and parts for Southern Africa. More than a decade on, Hyundai Automotive SA is today still committed to becoming the best automotive brand in South Africa.

With a network of more than a 100 dealerships in Southern Africa, including Namibia, Botswana and Swaziland, and good name for maintaining high customer service standards, it is well placed to achieve just that.

Operations director Albrecht Grundel (AG) tells us more…

h Y U N D A I


Hyundai South Africa operations director Albrecht grundel talks brand awareness, reliability, business, style and strategy in an exclusive interview with South Africa Magazine. By Ian Armitage

Q&A

A ssociated Motor Holdings, a division of Imperial Holdings,

announced in April 2000 that it had signed a distribution agreement with Korea’s Hyundai Motor Company to import and distribute of Hyundai vehicles and parts for Southern Africa. More than a decade on, Hyundai Automotive SA is today still committed to becoming the best automotive brand in South Africa.

With a network of more than a 100 dealerships in Southern Africa, including Namibia, Botswana and Swaziland, and good name for maintaining high customer service standards, it is well placed to achieve just that.

Operations director Albrecht Grundel (AG) tells us more…

h Y U N D A IQ&A

h Y U N D A IQ&A

Hyundai South Africa FEATURE


South Africa Magazine (SA Mag): Albrecht, thanks for taking the time to talk with us. Could you tell us about Hyundai in South Africa and your future goals?

AG: We have recently had the groundbreaking ceremony in Bedfordview where Hyundai Automotive South Africa’s new head office is being built. We expect to open it officially in a year’s time, and the finished building will be a token of Hyundai’s

commitment to the local market and our customers – present or future. Our goal is not merely to be successful in terms of the number of cars sold – we aim to be a most-loved automotive brand, and that means that we would like to deliver even higher levels of service through our dealer network in South Africa, Namibia, Botswana and Swaziland.



South Africa Magazine (SA Mag): Albrecht, thanks for taking the time to talk with us. Could you tell us about Hyundai in South Africa and your future goals?

AG: We have recently had the groundbreaking ceremony in Bedfordview where Hyundai Automotive South Africa’s new head office is being built. We expect to open it officially in a year’s time, and the finished building will be a token of Hyundai’s

commitment to the local market and our customers – present or future. Our goal is not merely to be successful in terms of the number of cars sold – we aim to be a most-loved automotive brand, and that means that we would like to deliver even higher levels of service through our dealer network in South Africa, Namibia, Botswana and Swaziland.

SA Mag: How do you think the business is performing? Has this been a good year? AG: Yes, our year has been better than 2010 thus far, and Hyundai Automotive South Africa’s business is performing well. As in many other industries, the downturn in the economy and slow recovery has had an effect in the car business too. However with our new styling Hyundai is a favourable brand with South African consumers and therefore we are in the fortunate position that several of our models are doing very well. The demand for our models have seen us increase our market share in many of the segments where Hyundai is represented.

SA Mag: How would you sum up the current state of the industry then?AG: The industry is still subdued, both from a buyer’s perspective as well as a retailer. People are buying down into lower segments due to diffi culties with affordability. The challenge is to be able to offer the desired products in such a scenario. I can confi dently say

that Hyundai South Africa is meeting that challenge. Buyers spending their hard-earned money in diffi cult fi nancial times also want good, reliable and quality products at accessible prices. We are also meeting that challenge with the Hyundai product offering.

SA: Are there lots of opportunities for the company?AG: Hyundai Motor Company and Hyundai Automotive South Africa have experienced unprecedented growth, regardless of the diffi cult times encountered locally and in the global economy. When these diffi culties were at their worst in 2009, many people were holding back on the acquisition of a new car or vehicle. Now that we have moved away from those extreme diffi cult fi nancial times, people have found their fi nancial situations less restraining and have replaced their vehicles or bought their fi rst car. Our strength lies in the wide product offering of



SA Mag: How do you think the business is performing? Has this been a good year? AG: Yes, our year has been better than 2010 thus far, and Hyundai Automotive South Africa’s business is performing well. As in many other industries, the downturn in the economy and slow recovery has had an effect in the car business too. However with our new styling Hyundai is a favourable

that Hyundai South Africa is meeting that challenge. Buyers spending their hard-earned money in diffi cult fi nancial


Hyundai, and all of them at very reasonable prices in each of the segments where they are represented, and with the attractive design and the build and material quality that have taken the Hyundai brand to the next level.

While our range is almost complete and completely overhauled over the past three years, we are about to add a few more models within the next year that would really make Hyundai one of the manufacturers with the widest variety and most comprehensive range of models. Hyundai Commercials have also grown their market share and we are looking at possibilities of expanding our range of commercial vehicles.

SA Mag: Have you identifi ed a clear market strategy? What is it?AG: Hyundai will offer high-end, high-quality values at a surprisingly attainable price and values that customers never experienced or expected. This will not be limited to just the product, but throughout Hyundai’s entire business, operations and services. At the beginning of 2011 we launched “New Thinking, New Possibilities”. This encompasses Hyundai’s new brand concept, “Modern Premium”, which aims to provide customers with emotional value and experiences beyond expectations through new thinking and new possibilities. The new brand direction also captures the

44 www.

spirit of change at the automaker, which has shown dramatic growth in all areas of business. Customers do not believe that expensive cars with unnecessary technology are premium – they want their core needs fulfi lled at an accessible price, with a car that exceeds their expectations, and a car that refl ects their values and the times in which they live. Hyundai is not just a company that makes cars, but also one that creates new possibilities. Our goal is not to become the biggest car company, but to become the most-loved car company and a trusted lifetime partner of our owners.

complete and completely overhauled over the past three years, we are about to add a few more models within the next year that would really make Hyundai one of the manufacturers with the widest variety and most comprehensive range of models. Hyundai Commercials have also grown their market share and we are looking at possibilities of expanding our range of commercial vehicles.

limited to just the product, but throughout Hyundai’s entire business, operations and services. At the beginning of 2011 we launched “New Thinking, New Possibilities”. This encompasses Hyundai’s new brand concept, “Modern Premium”, which aims to provide customers with emotional value and experiences beyond expectations through new thinking and new possibilities. The new brand direction also captures the

44 www.

price, with a car that exceeds their expectations, and a car that refl ects their values and the times in which they live. Hyundai is not just a company that makes cars, but also one that creates new possibilities. Our goal is not to become the biggest car company, but to become the most-loved car company and a trusted lifetime partner of our owners.

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SA Mag: do you continue to innovate? How so? AG: Our innovations are visible on the road, in every new Hyundai that has been sold. The fresh, attractive new design of our cars – on the outside as well as inside the cabin – have been applauded by the motoring media as well as the customers who buy them. The suspension and steering systems have undergone an equally exponential improvement to create cars that are not only well built, but also fun to drive. We are incorporating new technology in our sound systems, Bluetooth interactivity with cell phones and media players, and globally Hyundai is developing interactive communication systems through Blue Link that would make the life of a motorist in future products even more enjoyable.

Hyundai has spent millions of rand over the past few years in the development of new, more refi ned and better performing engines and drivetrains. They are developed in-house and a new range of very effi cient turbocharged engines with a small displacement is about to be implemented in our model range in the near future. Hyundai is also well aware of the challenges posed by the need to curb global warming and the lowering of emissions by motor vehicles. This also drives the development of engines that conform to and exceed the standards of the most stringent regulations regarding emissions such as Euro 6 or California’s ULEV2 (Ultra-Low Emission Vehicle standards). Hybrid drivetrains and electric vehicles are also developed at a fast pace, and Hyundai’s Blue Drive models with exceptional fuel consumption are a spin-off of this drive to make a contribution to global efforts to keep our planet and our air clean.

SA Mag: How do you see the industry developing?AG: The need for individual transport in South Africa will continue to drive a high demand for cars, given the lack of ample public transport. The challenge would be to provide smaller cars that are safe, able to travel longer distances when needed, with engines that can provide the performance needed on the oxygen-starved Highveld where the highest concentration of vehicles is found in South Africa. Bigger, luxury models will also have to be equipped with more effi cient engines delivering lower fuel consumption and lower emissions of CO2.

Albrecht thanks for answering our questions; we wish you well.

To learn more visit Hyundai SA’s website, www.hyundai.co.za. END


The suspension and steering systems have undergone an equally exponential improvement to create cars that are not only well built, but also fun to drive. We are incorporating new technology in our sound systems, Bluetooth interactivity with cell phones and media players, and globally Hyundai is developing interactive communication systems through Blue Link that would make the life of a motorist in future products even more enjoyable.

Hyundai has spent millions of rand over the past few years in the development of new, more refi ned and better performing engines and drivetrains. They are developed in-house and a new range of very effi cient turbocharged engines with a small displacement is about to be implemented in our model range in the near future. Hyundai is also well aware of the challenges posed by the need to curb global warming and the lowering of emissions by motor vehicles. This also drives the development of engines that conform to and exceed the standards of the most stringent regulations regarding emissions such as Euro 6 or California’s ULEV2 (Ultra-Low Emission Vehicle standards). Hybrid drivetrains and electric vehicles are also developed at a fast pace, and Hyundai’s Blue Drive models with exceptional fuel consumption are a spin-off of this drive to make a contribution to global efforts to keep our planet and our air clean.

A t a time when skills shortage is a term on every leader’s lips, attracting and keeping

top talent is key challenge. Having the right people is fundamental to the success of any company.

So how do you attract the right people to your company?“When considering a new position, candidates will care about many different things from growth and development to fairness and equality,” says Kast, a superb leader and businesswoman, who has been CEO at DAV since its inception in 1975.


Ingrid Kast, CEO at DAV Professional Placement Group - a recognised leader in the recruitment industry and a company that attracts as many sector excellence awards as it does top candidate CV’s - chats to South African Magazine about this critical challenge.By Ian Armitage

t a time when skills shortage is a term on every leader’s lips, attracting and keeping

top talent is key challenge. Having the right people is fundamental to the success of any company.

So how do you attract the right

Ingrid Kast, CEO at DAV Professional Placement Group - a recognised leader in the recruitment industry and a company that attracts as many sector excellence awards as it does top candidate CV’s - chats to South African Magazine about this

toptoptalenttalenttoptalenttoptoptalenttoph O W T O A T T R A C T A N D K E E P

“Over the past 37 years,” Kast continues, “we’ve spoken to and interviewed thousands of candidates, and discovered that compensation is not the only reason we are able to attract top talent to both DAV and our client’s companies.

“The vast majority of people want to know how their goals, strengths and values fi t with the company’s vision, needs and culture. At DAV our main focus has always been putting the right person in the right position. Our candidates know that we will not send them on an interview unless we know the position is a great fi t for them, that they will walk away knowing ‘this will be the best career move of my life.’ And our clients know that the candidates we send them are ones that take the team and the company forward.”

This insistence on quality and integrity is at the root of DAV’s success at a time when many recruitment fi rms throw any CV at a position; it is one of the many reasons that 80 percent of business is repeat business and 63 percent of DAV’s candidates come to them through referral.

So, is there an advantage to using a recruitment company over sourcing directly or through the HR department? “The biggest advantage that our clients talk about is the sheer scope of our network,” says Kast. “At any given time, only 33 percent of the potential candidate pool is actively looking to move. It’s our knowledge of how and where to find the ones that aren’t, that we bring to the process. With the skills shortage a reality, our clients find this to be an invaluable advantage.”

DAV enjoys an additional advantage over its competitors, however, and that is in its very strong core of people, senior consultants and team leaders. This is remarkable in an industry, which - because of its competitiveness - is notorious for large staff turnover. Typically, within the recruitment sector, for every four people that join, only one remains. But at DAV, it is the other way around - out of four three remain. For their clients and candidates this means dealing with expert, trustworthy and industry savvy people who build and maintain long-term relationships.

In-house training is a major key. “This has always been our strength,” says Kast.

“Training is fundamental to our success. “We are constantly monitoring the countries

that lead the edge in recruitment practices, namely the US and UK, for the world’s best in training innovation. We have access to the best and latest material, and we bring international trainers to us – whenever there is cutting edge development in the art of attracting, leading and keeping people, we have it.”

Is there anything else companies should be aware of in attracting and hiring top talent?“The key to successful hiring is uncovering what candidates really care about right from the earliest moment of contact. In a very deep and sincere way, put yourself in their shoes. Address what they care about and you will be rewarded with a committed candidate and the best talent on board for your company,” says Kast.

“We have seen that very often what candidates care about is joining a company where they will enjoy their work, the people they work with, and the culture. In addition, they want to work with a leader that understands what motivates them and brings out the best in them.”

As winners of Deloitte’s Best Company to work for, DAV is a recruitment leader that clearly knows what works in the on-going challenge of attracting and keeping top people, knowledge and insight it continues to share with clients in supporting them as employers of choice.

DAV Professional Placement Group FEATURE


Okay, so you’ve found the right person - the next challenge is keeping them.

“There are few worse feelings for a leader than when a valued employee announces he or she is leaving,” says Kast. “Luckily – in most cases – employee resignation is a process, not an event, so we have time to address the situation. The best news for anyone charged with leading people: we can interrupt the disengagement process and salvage key talent at critical, predictable points along the decision path to departure.

“The best defence is a good offense: meeting with everyone within our span of responsibility on a regular basis. Regular meetings ensure a timely exchange of information and make it less likely that we are caught off guard if someone is planning to go.

“We can also learn a lot about what motivates our people by observing them in various situations. Noticing when their faces have smiles and their voices have enthusiasm. Observing, also, what they are not expressing and might be holding back.

“If we notice a change in behaviour, we communicate… as concisely as possible. If there is an issue, we can ask first what their proposed solution is, or what they might need to turn that situation around, before offering our own advice or decision.”

Kast says DAV leaders spend extra time with their people. It is important to learn what keeps them motivated.

“Whatever it is, we want to keep doing it! And, we want to nip in the bud anything that could threaten

our relationship with our people.”

About dAvDAV is exceptionally well established - the oldest permanent recruitment company in South Africa - with a history of repeat business and long-standing relationships with clients and candidates alike. This has led to the DAV brand becoming exceptionally strong and recognised.

A leading player in the engineering and ICT industries, DAV also has specialist divisions in fi nancial markets, offi ce support, German and foreign language speakers and mid to top-level management.

“We have grown organically, adding new divisions and expanding staff with year-on-year growth,” says Kast. ‘We now operate into Africa and have a strong strategic relationship with a Munich-based fi rm Kast Kinnear. It has become more and more important for candidates to have international experience and this relationship allows us to place candidates who would like to explore European opportunities. But for those who love South Africa and Africa, we have access to the best opportunities with top blue chip companies throughout the continent.

Some 144 people work for DAV in Johannesburg, with another 30 in its Cape Town Offi ce.

In 1988 there were just nine employees – the growth story is remarkable.

Website: www.dav.co.za END


DAV Professional Placement Group FEATURE

We have seen that very often

what candidates

care about is joining a company

where they will enjoy

their work

For over a decade, our partnership with DAV Recruitment has made us best suited to help them nd the right professionals for their organisation.

To this effect we have combined our expertise, eexperience and hard-won instinct to ensure we source candidates with the skills to help your business excel.

Physical Address :No 8 Viscount Of ce Park, Viscount Road, Bedfordview

Postal Address :Postnet Suite 44, Private Bag X1, East Rand, 1462

TTelephone: 0861 CAREER (227 337)

www.pnet.co.za


Botswana Railways (BR) is Botswana’s state owned

railway company.By Ian Armitage

T r AC K I N G T h e

Botswana Railways FEATURE

“Botswana Railways has a railway network that comprises of a main line which runs from Ramatlabama in the south and Bakaranga in the north, three branch lines which connect Botswana Railways’ stations to the mines from which BR transports commodities, crossing

loops, private and service sidings as well as station yards,” the company told South Africa Magazine.

The distance for the entire railway network of Botswana Railways is: Main Line - 640 km; Francistown to Sua Pan (branch line) - 174.5 km; Palapye to Morupule Colliery (branch line) - 16 km; Private Sidings - 50 km; Service Sidings - 20 km; Station Yards - 30 km; and Crossing Loops - 20 km.

“The Main Line comprises of long welded 50 kg/m rails, which are continuously welded on concrete sleepers with 50 kg/m turn out sets,” the BR said. “The Francistown to Sua Pan Branch line is made up of long welded 40 kg/m rails which are continuously welded on concrete sleepers with 40

kg/m turn out sets; and Serule to Selibe-Phikwe and Palapye to Morupule branch lines comprise of jointed 40 kg/m rails on steel sleepers with 40 kg/m turn out sets.

“BR signed an agreement with Ansaldo Union Switch and Signal, a company based in Queensland, Australia, to design and construct the signalling and telecommunications infrastructure for the entire BR network. BR and Ansaldo agreed to form a joint venture entity to carry out the maintenance contract of the signalling and telecommunications infrastructure. An agreement was also signed between BR and the Rail Project Group as represented by Ansaldo Union Switch and Signals,” it continued.

m ost southern African countries are heavily investing in rail line expansions to transport

more export coal to ports to meet growing global demand, especially from Asia.

Botswana is no different.

In September, India’s Minister of State for Commerce and Industry Jyotiraditya Scindia stressed the need to ‘diversify trade’ between India and Botswana. He offered technical assistance to Botswana in the strengthening of rail network and other transport logistics.

Some Indian fi rms, including government-run infrastructure fi rms RITES and IRCON of the Indian Railways, have already provided technical consultancy services to Botswana for various infrastructure projects.

As a land locked country, with huge natural reserves, Botswana’s rail network is vital and thus there is a great opportunity for Botswana Railways, which discontinued its passenger train (the ‘blue train’) on 1 April 2009.

Botswana Railways (BR) is the national railway of Botswana. It was created in 1987 when the government of Botswana bought out the Botswana-based sections of the National Railways of Zimbabwe (NRZ). NRZ had been initially operating the rail system after Botswana had gained independence.

51www.southafricamag.com 51www.southafricamag.com

We understand

the importance

of job creation

and expanding our brand

Botswana’s railway systems have been around for quite some time, and have seen major changes, especially as of late.

Passenger services used to operate between Francistown and Lobatse however, these day time services stopped in 2006 and overnight services stopped in 2009 in order to focus solely on the highly lucrative freight and parcel transportation.

Plans for new railways are in the mix with the 1,500 km Trans Kalahari Railway planned.

Robert Kalomo, Namibia’s Director of Railway Affairs in the Ministry of Works said in February that construction of the TransKalahari Railway would take five years, with costs expected to range between $5-9 billion.

The Trans-Kalahari line would stretch from Mmamabula to Walvis Bay, with a possibility of a connection to the South African Waterberg coal field, touted to become South Africa’s next major coal mining area.

Several consortiums have submitted bids for the project, including Canadian-listed CIC Energy Corporation, Kalomo said.

“The setup of this terminal is not specified, but it will be as modern as possible to reduce harmful side-effects on the environment,” Kalomo said.

He added that the country was also looking at extending its rail network to Katima Mulio on the Zambian border.

The Namibian-Zambian rail line would enable Zambian minerals to be exported via the west-coast port, avoiding the congested routes through Durban and Dar es Salaam

Botswana Railways FEATURE


in Tanzania.“Namibia (would) also revisit the idea to construct a new port at Cape Fria near the Angolan border,” Kalomo said.

In October 2010, Botswana Railways started building a large shopping mall near Gaborone Station to add to its business model. It is projected to create thousands of jobs for Botswana, where unemployment and poverty are high. The shopping mall will create 3,000 jobs when in full operation. “We understand the importance of job creation and expanding our brand,” BR told South Africa Magazine.

With this important ideology in mind, Botswana Railways launched a private company, Botswana Railways Properties (Pty) Ltd, a wholly owned subsidiary. The goal behind the venture is to work within the world of real estate and property management. Real estate in Botswana is bursting with potential and Botswana Railways Properties helps to manage the company’s already existing assets.

“Botswana Railways Properties came about from the revision of the Botswana Railways Act in 2004, which allowed for commercialisation of Botswana Railways’ land,” BR said. “The formation of Botswana Railways Properties will make the company more commercially viable and add to its appeal in the property market. “ END


Aerospace

Consumer durables

Medicaldevices

Mining

Wholesalesuppliers& distributors

Machinery &equipment

Electronics Food &beverage

Metalfabrication

Automotive components & accessories

Construction

Chemicals& fertilizers

Plastics & rubber Pharmaceutical

Z ambia is blessed with substantial mineral resources. The major metal, which has been exploited for

nearly a century, is copper. Since the establishment of Zambia as a

nation, the metal has been and still is, the single largest contributor to the economy.

But mining has a bigger role to play.To ensure that it does, the

Government has taken bold steps. A new Mining Act was put into place

in 1995. The main features of the act were: the divestiture of government from the business of mining through privatisation of the mines; the liberalisation of the fi scal policy; and the provision of several tax concessions to mining companies.

In this context, Universal Mining and Chemical Industries (UMCIL) was born.

“We are Zambia’s main steel and iron producer,” UMCIL director Julius Kaoma explains. “We are helping to transform Zambia, for the betterment of Zambians.”

According to Kaoma, UMCIL is investing some US$70 million (some K350 billion) in the implementation of the second phase of the integrated iron and steel project in Kafue, South of the Zambian capital Lusaka.

Kaoma says this is part of an ambitious project, which will include the construction of a 50 km all weather gravel road from the Kafue steel mill to the Sanje Hill iron ore mine west of Kafue.

“The total investment cost for the second phase of the project is forecast to gobble up more than US$70 million when it is completed,” he says.

According to Dr Kaoma, the second phase of the project would also involve the mining of a 400,000 tonnes a year of high-grade iron ore after the resettlement of Sanje Hill communities not far from the mine.


Julius Kaoma Technical director at Universal Mining and Chemical Industries (UMCIL) talks to South Africa Magazine.By Ian Armitage

STeeL ANDI r o NZ A M B I A ’ S M A I N

P R O D U C E R

STeeL ANDI r o N

“The project will also include the erection of a direct reduction plant for the processing of iron ore by the steel mill into sponge iron using Maamba coal,” he explains. “The sponge iron or direct reduced iron will substitute steel scrap that is anticipated to be in short supply next year considering Zambia neighbours’ ban on steel scrap export and the poor generation of the commodity in the country.

“In terms of the road construction, that is going to be jointly done with the Zambian Government,” he adds. “We have started the construction of the road - so

far 20km of road has already been done. We do hope by early next year, the road will be fully completed. This includes the procurement of machinery and equipment for both the sponge iron plant and the iron ore mine as well as infrastructure development and Sanje Hill community resettlement.

“We are working with the Government and we have to resettle the people living in the surrounding areas because of the development of the mine.

“The phase will also see the increase in the labour force to more than 2000 workers when the project comes fully on stream.”

Universal Mining and Chemical Industries FEATURE


Besides iron ore, Kaoma says, there would be demand for other raw materials like coal, limestone, dolomite, manganese ore, fl uorspar, kyanite and others.

There would also be demand for construction material like sand, gravel and cement.

“We currently run a steel plant whose production capacity is 100,000 tonnes per year. Scrap is the main component in steel,” Kaoma says. “We are Zambia’s leading supplier of steel with scrap being the main component in steel production which has been so much sought from Zambia in recent months.”

Photograph courtesy of Tahilla Photography

He says that the mine in Mumbwa has the capacity of 250 million tonnes of iron ore reserves and is located 200km west of Kafue in central province.

The mine at Sanje Hills (Nampundwe) reserves estimates stand at 10 million tonnes of high-grade iron ore with the project generating employment for 600 people.

“Our steel plant is in Kafue in the Lusaka Province and it has a production capacity of 100 000 tonnes per year. Scrap presently is the main component in any steel production, it will be phased out with iron ore as scrap supply is sustainable.” Kaoma stresses.

As the steel mill expands to meet customer’s needs, the Mumbwa iron body will need to be opened up. The ferrying of the iron ore to the Kafue Steel Mill calls for investment in a railway. UMCIL will be investing more than US$130 million, which is required to undertake such a project.

The railway line would be pivotal in addressing transport infrastructure bottlenecks, Kaoma says.

“We have planned to build a railway line and we will also develop the mine in Mumbwa, as I explained before. The railway line will facilitate easy transportation of our mine products. The railway line will be cheaper than road transportation. It will be easy for us to move our products between Lusaka and Mumbwa and ease pressure on the roads.

“It would connect our two mines would be in Mumbwa and Nampundwe respectively,” he says.

Dr Kaoma says the company has already an impact on the international market as the steel products the company currently manufacture meets South African Standards, an equivalent of European and American Standards and establish itself. It is currently producing between 36,000 tonnes and 40,000 tonnes of steel per year.

“We have our expansions planned and we will increase production stage by stage because this is what the market can absorb,” Kaoma says. “Most of our product is exported - we export mainly within the region to Malawi, Zimbabwe, Mozambique Botswana, Rwanda, Burundi, Democratic Republic of Congo, Tanzania, South Africa and we’ve had inquiries from Namibia and Angola.

“Africa is on an infrastructure boom and demand for steel is up considerably as a result.”END


Universal Mining and Chemical Industries FEATURE


o N T h e UP

Trollope Mining Services provides

surface mining expertise and services to the mining industry. Its

journey is an uplifting story of triumph

over adversity.By Ian Armitage

T rollope Mining Services provides surface mining expertise

and services to the mining industry. It was formed in 1975 when two brothers, Peter and John, bravely took their fi rst steps in business and started off by purchasing ex-military equipment from auctions. They used their farm as a base, reusing their new acquisitions on short-term contracts clearing farms.

They then moved onto small-scale mining.

During those early days the brothers saw their business outgrow the farm, prompting a move down to Johannesburg. They focussed predominantly on the coal mining sector, but ventured too into manganese, gold and platinum.

“Trollope has traditionally specialised in open pit mining; taking signifi cant volumes from the ground, drilling and blasting it, removing the rock and stock piling the usable ore material,” Managing Director Guy Hopkins explains. “The company’s main facility is now situated just outside Johannesburg - incorporating head offi ces and workshops. There are also bases in Thabazimbi and Ogies. Every contract also has its own workshops and offi ces on site.

Trollope Mining Services FEATURE


“We are today a formidable business in the medium-sized opencast mining sector.”

Current services include opencast mining, rehabilitation, bulk earthworks, plant hire, crushing & screening and road construction, he says.

“We have substantial operations on different mines in the coal, andalusite, gold and platinum industries and have a substantial fl eet of equipment. Over the years we have enjoyed a sound working relationship with several well-known companies including Anglo Platinum, Xstrata Coal, Anglo Coal, Exxaro, Kumba Resources, and Goldfi eld.”

According to Hopkins, for many years Trollope’s biggest contract was with Xstrata in South Africa.



We have substantial operations on different mines

in the coal, andalusite, gold and platinum industries and have a substantial fleet of

equipment

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However, when the crash came in 2008, some of the agreements had to be terminated due to economics.

“The client ended up closing half of their mines and cancelling most of their contracts with 28 days notice. Trollope lost 80 percent of their turnover in a month. Ironically, however, it was these cancellations that have been a catalyst for the company’s transformation.”

He says the company started to take on a greater variety of contracts among the junior to middle mining houses.

“The economic downturn made us look at the bigger picture,” Hopkins explains. “I think in hindsight it was undoubtedly a good thing that we were freed from the some of the long-term contracts, as it enabled us to pursue other options.”

In the past Trollope was far too exposed in one single sector, with one client. Now it has an impressive range of clients, projects in several different sectors of the industry, a great reputation and a steady cash fl ow.

“In terms of our future, there are plans to expand within key African areas, notably Zambia and Botswana – we want to expand the business.

“Our order book is almost full. We probably went into the downturn quicker than anyone else, so we managed to emerge from it quicker and equip ourselves for the future,” says Hopkins. “Some of the other guys are still carrying old contracts at poor rates at not getting the yields or profi tability.”

Signifi cantly, the company has also had the opportunity to fi ne tune its equipment policy as well as revamp the way it does business.

All primary machinery must now be new with a high level of availability, ensuring it has the longest possible life span, while also providing reliability and exceptional performance.

“Peter and John are still very much involved in the company and are as


passionate as ever,” Hopkins says. “John is involved in the plant side, where he is currently mentoring an up and coming manager, and Peter is lending his considerable acumen to business development.

“We are keen to retain a family ethos within the business, while still embracing core corporate principals, with structured systems, policies and procedures. It’s about striking the right balance.”

Trollope Mining Services was recently appointed mining contractor at



Junior South African coal exploration and development company Continental Coal’s coal project in Vlakvarkfontein, in Mpumalanga province

Under the terms of the initial three-year contract mining agreement, Trollope will be responsible for the management of the site and all the mining and crushing activities.

“We are delighted to have got this,” says Hopkins.

Trollope was selected following a highly competitive bid process, during which a number of major mining contractors submitted tenders. The awarding of the mining contract followed a rigid selection and review process that included an assessment of the mining contractors’ credentials, capabilities, equipment and labour availability, as well as visits to a number of their existing contracting operations.

“The mine is located in the Delmas area, adjacent to State-owned power utility Eskom’s Kendal power station,” says Hopkins.

The colliery has a measured resource of 17 million tons and is to be developed as a conventional opencast mining operation. It is forecast to produce 350,000 t/y of A-grade and B-grade export-quality

We are keen to retain a

family ethos within the business

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Manufacturers’ names, numbers, symbols and descriptions are used for reference purposes only and it is not implied that any part listed is the product of the manufacturers

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coal and one million tons a year of domestic-quality coal over the mine’s initial 10-year life.

“We offer a more complete service to clients,” adds Hopkins. “At the moment for us, it is very buoyant. We’ve picked up a couple new jobs.

“There is general buoyancy in the market,” he says. “For the last year we have been pricing tenders left, right and centre. Obviously with the gold price coming up, with economies of scale you can actually go down deeper and make it more viable. And with Eskom and the coal requirements there is a lot of opportunity and a lot of junior miners have started up.”

Trollope’s journey is an uplifting triumph over adversity. END


Just over a year ago East London Airport opened an upgraded terminal capable of handling over a million passengers a year. Airport manager Michael Kernekamp talks to South Africa Magazine.By Ian Armitage

TA K I N G T o T h e

L ast November East London Airport officially opened an

upgraded terminal capable of handling over a million passengers a year. It has more space for restaurants and parking. Government and local business have hailed the development as an economic boon for the region.

“The development is a milestone and central to the city and province’s economy,” says Airport Manager Michael Kernekamp.

Work was completed in April 2010, even though it did not form part of South Africa’s 2010 Fifa World Cup plans.

“There have been major additions to the airport building,” Kernekamp says. “The space had been increased to 6,800m², and there are now 15 check-in points, a bigger departure lounge, and increased space for restaurants and parking.”

He said that more than R100 million had been budgeted for the project.

“Local businesses have

East London Airport FEATURE


welcomed it. It attracts investors and is great for businesses and the economy. The feedback has been overwhelmingly positive.

“The expansion meets passenger demands - the capacity of East London Airport stood at around 700,000 passengers a year before the upgrade, and we were bursting at the seams. Now we can handle over a million.

“It all comes down to the vision of the Airports Company of South Africa and the government.”

Kernekamp says projected figures suggest it will reach capacity in 2017. His goal is to continue to improve the airport.

“East London Airport was established in 1993 as part of the Airports Company South Africa along with four international airports - Cape Town, Durban, Pilanesberg and Johannesburg - and five domestic airports - Bloemfontein, Port Elizabeth, Kimberley, Upington and

George,” he says. “The recent terminal upgrade project has been superb, and I’m very proud to have taken part, but that isn’t the end. We continue to focus on customer satisfaction and our ‘end-to-end’ process. From arriving, parking, queuing time at check-in and time before boarding, to arriving, collecting baggage, going through passport control and leaving the airport are all top priorities for us. We have created a world-class airport.”

This strategy of continual improvement has led to the company joining the ACI (Airport Council International), whose research department produces data that helps airports benchmark their operational statistics to industry standards, Kernekamp says.

In addition, a quality management system and an airport service quality system have been introduced.

“We endeavour to provide a world-class service, clean and suitable facilities,” he says. “We look at global practices, making technology systems up-to-date, ensuring resources are geared towards customer service. We of course have key performance indicators. The new terminal has been a catalyst for that.”

The company’s future developments and capital investments include a runway improvement programme,

which will run over a three year period at a cost of R189 million and is set to commence soon.

“We have appointed the consultants to do the work and have got to the point where we have done the design and gone out to tender. We are evaluating the tenders now. If all goes well we will be appointing the preferred contractor by December at the latest,” Kernekamp says. “Hopefully we can get the site established before the builders break in December

and then we should be commencing, if all goes well, with that runway refurbishment on 9 January 2012. That should be a 15-18 month project.”

He adds: “Alongside this, we believe in investing in our people. We believe in people development that includes appointing, improving and retaining the right people.

“We value passion, results, integrity, diversity and excellence.”

East London Airport is projecting passenger growth between five and six percent growth over the next 12 months.

“This year passenger numbers are up two percent compared to last,” Kernekamp says. “We are sitting nine percent below budget. The global turmoil has contributed to that, certainly.


East London Airport FEATURE

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diversity and excellence

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Fortunately, most travellers that use our airport are business passengers. So, we haven’t had the growth we budgeted for, but the upside is that we are actually better off than some of our sister airports that have a huge number of leisure passengers. They’ve taken a knock. The advantage of having a situation where the passenger profi le is 80 percent business travel has made our business more sustainable – because business must continue. People cut back on the leisure aspect but they don’t really cut back too much on business travel. We haven’t felt the negative effects of the recession in the same way as other airports.

“That said it hasn’t been good in terms of the passenger growth that we hoped for. Our designed capacity is 1.2 million per annum. We are sitting at 720,000 at the moment. We have plenty of capacity moving forward based on whatever the future demand is.” END


BKS Group is a leading multi-disciplinary

consulting engineering and management company with over 45 years of experience.

By Ian Armitage

E N g I N E E R I N g A

BKS Group is a leading multi-disciplinary

E N g I N E E R I N g A

future

BKS Group is one of South Africa’s most respected multi-disciplinary

consulting, engineering and management firms. It covers the full spectrum of civil engineering disciplines in South Africa and a number of other African countries. It has grown considerably in the years since inception to open 17 offices across South Africa, as well as in Libya, Mozambique and Kenya, with global aspirations.

The company has won a slew of professional awards, including more than 50 in the last decade alone, as well as numerous plaudits for individual staff members.

“Our vision is to be the African World class leader in the art of supplying sustainable development solutions,” COO Tim ter Haar tells South Africa Magazine. “We strive to offer tailored solutions and aspire to expand our footprint globally.”

Ter Haar, former Business Unit Head for BKS KwaZulu-Natal Region, and was appointed to the position of COO in October 2010.

“My remit is to realise the strategic vision of BKS, with a focus on further securing mega projects in the post-2010 phase,” says ter Haar, who has worked for BKS since October 1992.

Considering that South Africa’s market activity has slowed down over the last six

months, and that the unrest in Libya has downwardly impacted international operations, things are going well for BKS, whose most famous project is perhaps the Gautrain.

The Gautrain’s new city to city high speed train route between Johannesburg and Pretoria officially opened in August - to the delight of commuters.

After a month of delays, the first 38-minute ride between Johannesburg and Pretoria took place when VIPs caught the train at Sandton Station shortly after 7.30am.

It was a journey that could end frustration for motorists commuting between the two cities daily.

BKS Group FEATURE


“I have been driving to Pretoria from Randburg and back, for 11 years, and it made my life miserable,” passenger Gloria Maaka-Tlokana said. “But this is so much easier, peaceful and secure and I can tell my family exactly what time I will be home.”

The R25.7 billion project is expected to cut the number of cars on the congested N1 Ben Schoeman freeway by 20 percent.

“The first leg of the project - between Sandton and the OR Tambo International Airport - was launched successfully two weeks before the start of the 2010 World Cup,” says ter Haar.

Omdurman Water Supply and Optimisation Scheme

“BKS is a dynamic company and ensures that its specialists are available to work on projects either individually, or as part of an integrated team,” says ter Haar. “Gautrain is one of many projects we’ve worked on.

“We have countless industry accolades for innovative and successful project implementation, strong and dynamic leadership, and a team of highly specialised engineers, technicians, project managers and support staff. We have proven that we’re able to take on the most challenging projects and complete them successfully within time and budget constraints and in accordance with client specifications and needs.”

BKS’s vision, called vision 2030, has several objectives, one of which is “expanding the global footprint”.

Africa is a continent keen to increase its participation in the global economy. And it is booming. The result is increased investment in infrastructure.

“Poor infrastructure and inadequate infrastructure

services are among the major factors that hinder Africa’s development,” ter Haar says. “There is a lot of opportunity for us, particularly in Qatar.

“We are actively persuing work there and plan to open an office in the country. Obviously they have the 2022 World Cup. With our 2010 projects and infrastructure work around that – stadiums, roads, Gautrain, etc. – I think we are in a good position to use that knowledge and experience to pick up work in Qatar. There is a window of 10-12 years or more of opportunity in Qatar. That is our major, new opportunity.

“In terms of other areas, we are looking also at Namibia. There is a lot of mining work, possible oil and gas offshore and it has a well-balanced economy. It has developed fast and there are a lot of infrastructure projects there,” ter Haar adds.

BKS has picked up a few major projects locally too.

“We are working, for example, on the Medupi Power Station Project, which is the biggest dry-cooled power station and is currently under construction ,” says ter Haar.

BKS has been appointed to audit and design the concrete and steel structures for the Medupi Power Station’s Power Island in conjunction with an Italian Engineering company. BKS has also received a separate stand-alone appointment for the detail design of all the concrete structures in the Boiler Island, as well as certain structural steel components of the project.

It has also been appointed to audit construction works on the Power and Boiler Islands with the final goal to issue the relevant structural stability certificates.

“The equivalent contracts were also awarded to BKS for the Kusile Power Station,” ter Haar adds.

BKS is also working on the construction of a new R500 million press shop at Volkswagen Group South Africa’s Uitenhage plant, in the Eastern Cape.

The investment is in addition to the R4.5 billion already invested by the company in the country over the past four years.


We are busy

investing in the youngKing Shaka International Airport

BKS Group FEATURE

Volkswagen(VW) manufactures the new Polo for the local and export markets at Uitenhage, as well as the Polo Vivo range for the domestic market.

“Construction of the new press shop was a strategic investment for VW,” says ter Haar. “We have extensive experience on projects like this in the automotive industry, having worked for many years with the likes of Toyota. We have also secured a similar contract recently with Mercedes.”

Ter Haar is an engineer with a lot of experience. He joined BKS in 1992 on a bursary scheme and has flourished.

BKS is currently on a push to make engineering attractive to youth and meet ambitious growth targets.

“The industry is aging,” ter Haar admits. “We have quality engineers, with vast experience, but the majority are in

the over 50 age bracket. There is certainly a gap of engineers. Skilled people left the country in 1994 and the decade after. We are busy investing in the young, improving our bursary schemes - investing in the future. The next generation is an important consideration. We target children at schools, the brightest minds and then we try to award as many bursaries as we can each year. In addition to that, we indentify key staff and train them – we send them on courses to extend their knowledge. We also have an excellent mentoring programme.”

At the annual CESA Aon Engineering Excellence Awards held in August, BKS was privileged to receive the “Best International Project” award for the Omdurman Water Supply and Optimisation Scheme in Khartoum, Sudan. “This award shows what we can do,” ter Haar concludes. “We were up against tough competition and we’re happy to add this project to our enviable international track record. We look to get more projects like this.” END

TO AdvERTISE WITH US, PlEASE CONTACT

ANdY EllIS ON

+44 (0) 1603 343367OR

[email protected]



Change is in the air atwhich has launched a new brand identity and sold its brokerage business to local office of US professional services group Marsh & McLennan. South Africa Magazine learns more.By Ian Armitage

‘ N E W ’ A L E X A N D E R F O R B E S S E L L S

brokerageChange is in the air at Alexander Forbes,Change is in the air at Alexander Forbes,Change is in the air atwhich has launched a new brand identity and sold its brokerage business to local office of US professional services group Marsh & McLennan. South Africa Magazine learns more.

‘ N E W ’ A L E X A N D E R F O R B E S S E L L S

brokeragebrokeragebrokerage

A brand is a company’s calling card – its fi rst impression. And Alexander Forbes wants to leave a lasting one.

In the words of its CEO Edward Kieswetter, “our higher purpose is to enhance your quality of life, now and into the future.”

Alexander Forbes has invested in a new brand, a new logo and new look, which, it says, “underpin a renewed commitment to making a difference”.

“The investment in a new brand is not a short-term commitment,” Kieswetter says. “It is a carefully considered decision to create the right impression for an Alexander Forbes whose reputation must continue to be founded on realising our client’s dream, and, through that, our own.

“The brand is founded on the premise that we should all be able to have our dreams come true and live without regret.

“Our new brand is more than a logo – our brand is an evolution of the existing Alexander Forbes brand, but it is also a break from the past and a fresh interpretation of the Alexander Forbes promise.”

Kieswetter adds: “Our logo represents a new strategic direction. It signals a clear shift forward, a determined, modern and meaningful expression of what we stand for and spire to.”

The insurance broking company that became Alexander Forbes was founded in 1935. It grew through the expansion of Price Forbes Life and Pension Brokers, which were founded in the 1950s.

In 1999, after a series of corporate restructures and mergers, the global Alexander Forbes brand was created and adopted. Today, headquartered in Sandton, it is a leading provider of risk, insurance, health, retirement and multimanager investment solutions internationally. Primary operations are based in South Africa, Africa, the UK and parts of Europe. Group operating income for 2010/11 was R4.6 billion. Operating profi t increased by eight percent to R1.1 billion over the same period.

Kieswetter says: “The group’s overall fi nancial results for the year to March were satisfactory and characterised by marginal growth in revenue with stringent control of cost whilst still continuing to make the necessary investments in its resources, systems, controls, leadership and brand.”

Alexander Forbes FEATURE


These investments and capacity building were important to drive the targeted growth in top-line revenue in the medium- to long-term.

UK operations, which had been severely hit by the recession, recovered substantially. “The turnaround brought about in the financial services business in the UK, to return to profitability, was particularly pleasing. The recovery in equity markets supported the results in both Investment Solutions and certain parts of the Financial Services businesses,” Kieswetter says.

The significant cost saving measures implemented over the past two years drove the improved performance.

“Demand for pension de-risking solutions, as well as advice on the impact of recent taxation and pending pension changes, remain strong.”

In September, Marsh, a wholly owned subsidiary of Marsh & McLennan Companies, announced that it had reached an agreement to acquire Alexander Forbes’ brokerage business. The business comprises Alexander Forbes Risk Services and certain local and correspondent operations serviced across sub-Saharan Africa, including Botswana

and Namibia. Kieswetter says that the

deal was consistent with Alexander Forbes’ growth strategy and would be mutually beneficial.

The transaction is subject to regulatory and other approvals.

“Alexander Forbes Risk Services will gain access to the expertise of the world’s leading international insurance broker, while Marsh will develop their African footprint through our established on-the-ground expertise and extensive client relationships,” Kieswetter explains.

The consideration payable by the various Marsh subsidiaries is R808.7 million, but


Alexander Forbes FEATURE

lEXCorp is a specialist legal expense Underwriting Manager in South Africa. lEXCorp has had a long standing association with Alexander Forbes. Our core focus is the development and provision of innovative legal solutions in a wide range of areas, including Commercial, Personal and Niche markets.

lEXCorp is a proud underwriting manager for the Red Carpet legal Assistance range of products developed by Alexander Forbes. Our leading team of lawyers and Advocates possesses both the expertise and capacity to provide a range of solutions to Retailers, Affinity schemes, Banks, Businesses, Brokers and the general public.

LEGAL EXCHANGE CORPORATION

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Legal disputes are often costly and stressful to pursue or defend. The financial risk and uncertainty of the outcome deters many people from taking legal action. This is where Legal Expense Insurance can hhelp mitigate your risk and limit your exposure.

Unlike conventional insurance, LEXCorp works with a country-wide network of Legal firms, Attorneys and Advocates who are appointed to represent the insured in legal proceedings. LEXCorp service includes a 24 hour legal advice call centre and document review on sstandard legal contracts. The entire process of litigation is monitored and managed from start to finish.

Our core business is the development, management and distribution of Legal Expense Insurance products and services. Legal Access is our main brand product, sspecially designed to provide indemnify against legal costs and expenses on a wide range of legal disputes, including Personal, Commercial, Affinity and Niche markets.

LEG

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NS

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AN

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may, subject to certain conditions and the achievement of specified revenue, operational and strategic performance targets, increase by up to R310.5 million to R1.119 billion. The transaction is due for completion in the fourth quarter of 2011.

Marsh said in a release that it will have “taken a significant step forward” in expanding its presence in Africa - in particular, it will have a leading market position in South Africa. “The transaction combines Alexander Forbes’ well-established South African operations, broader network and respected enterprise with Marsh’s global solutions, resources and placement capabilities to enhance Marsh’s competitive position in key markets,” Marsh said.

Peter Zaffino, President and CEO of Marsh, explained: “Marsh recognises the tremendous potential of the African

continent as a major market for insurance and risk management services. In Alexander Forbes Risk Services we will acquire a highly regarded firm, greatly strengthening our immediate presence and providing us with a powerful platform to deliver value to the fast-developing sub-Saharan region.”

David Batchelor, Head of International at Marsh, added: “This transaction is positive news for our clients, colleagues and the risk and insurance industry across Africa. Our clients will benefit from the deep expertise brought together in the combined business; our colleagues will enjoy expanded career opportunities; and our global services and solutions will give greater options to companies of all sizes across the region.”

This is an exciting time for Alexander Forbes, whose growth strategy remains on track. Learn more at www.alexanderforbes.co.za. END

Q& AQ& AQ& AQ& A


SRIC is an acronym for the Swaziland Royal Insurance Corporation and its main business is to provide short-term insurance, life insurance to individuals, as well as pension administration in the country. South Africa Magazine learns more.By Ian Armitage

S WA Z I L A N D r o YA L I N S U r A N C e C o r P.

S RIC is Swaziland’s leading insurance company. The fi rm talks to South

Africa Magazine’s editor Ian Armitage and tells him more about the challenges facing the country and the fi rm…

South Africa Magazine (SA Mag): SRIC has been lauded for its resilience and sound fi nancial management. Please tell us more about SRIC and your future goals?SRIC: Swaziland Royal Insurance Corporation (SRIC) is your one stop house for all your insurance needs. The Corporation has been providing security and peace of mind for over three decades to help protect what matters to you most. SRIC was established in 1973 by a King’s Order-in-Council in terms of founding legislation No 32/1973. The mandate of the Corporation is “to provide adequate and proper insurance business of all classes including both short and long term insurance, in accordance with the conditions appropriate in the normal and proper conduct of insurance business.” The Swaziland Royal Insurance Corporation commenced writing business in January 1974. Our future goal is to provide world-class service to our customers, grow the business and make profi t for shareholders and the sustenance of the Corporation.

SA Mag: How do you think the business is performing?SRIC: The business is performing relatively well in spite of the economic challenges we are trading in. This, though, has not been a good year to most businesses owing to the diffi cult economic conditions of the country, which are worsening by the day. A number of infrastructure projects that were in our books were stalled and others had to be downscaled. Competitive fl exible pricing, terms and conditions are

Swaziland Royal Insurance Corporation FEATURE


Swaziland Royal Insurance

Corporation is your one stop for all your

insurance needs

ways to demonstrate that we are resilient.

SA Mag: How would you sum up the current state of the industry?SRIC: The industry is growing if you consider the new entrants. The office of the Registrar of Insurance and Retirement Funds is in a better position to respond to the question as they have the holistic picture of the industry as a regulator. The major challenge we face is the difficult economic conditions the country is faced with as that impact negatively to all businesses.

SA Mag: What is your take on the current global financial troubles, as well as the financial crisis in Swaziland?SRIC: The country is facing very difficult economic conditions. Most business entities have government and civil servants as their major clients, if government does not have money, there is no way they can transact thus their business is affected. It is very difficult for prospective clients to take up new policies be it investments or whatever if they are not sure if their salaries will be cut.

Economic forces will always have an impact on our new business. The cut on interest rates provides a stimulus for consumers and investment demand expansion. As people have more disposable income, their demand for investments increases thus enabling them to open up for new policies as their affordability capacity is enhanced. But with the current financial crisis in Swaziland, prospective clients will in turn tend to cling more to the little they have due to the uncertainty of the future, with regards to job security or the most talked about salary cuts. Most businesses are negatively affected by this and SRIC is no exception, there is so much dependence on governments proper functioning for


SA Mag: Okay, so it is a tough time, but are there opportunities for the company?SRIC: Yes, opportunities will always be there. There is a substantial market segments that are untapped for a number of reasons and our marketing is focused on product awareness, creating interest, providing information and stimulating demand. There is growing competition in the insurance industry. We currently have a total of nine registered insurance companies operating in the country, with us being the only composite insurer, providing both short and long term insurances under one roof.

SA Mag: How have you responded to that?SRIC: The Corporation welcomes competition, we believe it is good for any industry as it brings about the element of giving people choice. Competition is healthy in the sense that it improves services, and forces establishments to charge competitive prices. We have an insurance sector which functions well in the country. The office of the Registrar of Insurance was established about five years ago, through the Insurance Act of 2005 and Retirement Funds Act of 2005. It is this office that regulates and supervises the insurance and retirements funds industry.

Head OfficeB3 Building, Corner Siteshi & Stores Street, Mbabane Tel : +268 2409 0222 Fax : +268 2404 4985 Mobile : +268 7628 7800Email address: [email protected]: www.b3group.co.sz

B3 Group Swaziland (Pty) Ltd is a reputable Funeral Assurance Company managed by well qualified and competent ex-Life Assurance Managers with a combined experience of over 50 years. Our vision is to be the leading service provider that speedily delivers beyond Ubuntu with passion in our chosen market segments. We provide outstanding services, satisfaction and client delight through our Ubuntu culture so as to maximize rewards to clients, employees, shareholders and other stakeholders.

B3 Innovative Products – The Executive Plan Range of Products

B3 has once again gone further beyond and offers the following:• Now provides the futuristic Executive Plan Range of products with cover

benefit of up to E 50,000.00 ( whole family E 174,000.00 ) for our clients to select from, what suits their needs. This is crowned by an optional family monthly Income Benefit of up to E 5,000.00 for 6 months on the death of principal member.

• It further provides optional accident benefit for double payment of up to E100,000.00 on death of principal member as a result of an accident with free premium waiver benefit for 6 months to those covered in the plan.

• It also provides a car usage for 2 days to help the family with funeral arrangements as well as a memorial tombstone of up to E 7,500.00.

The RainMaker

B3 is also pleased to further introduce to the market The RainMaker Executive plan range product that can payout with zero cash withdrawal projections of up to E 400,000.00 at a maximum term.• The RainMaker brings a sense of investment flexibility while

you enjoy your Funeral plan benefits.• A client can now have a cash withdrawal from the

investment fund during the lifespan of the client’s funeral plan at 5 years intervals or deferment option, which

such funds can for the education of a child, wedding or paying dowry etc.

while you enjoy normal funeral benefits.

B3 Group Swaziland (Pty) Ltd is a reputable Funeral Assurance Company managed by well qualified and competent ex-Life Assurance Managers with a combined experience of over 50 years. Our vision is to be the leading service provider that speedily delivers beyond Ubuntu with passion in our chosen market segments. We provide outstanding services, satisfaction and client delight through our Ubuntu culture so as to maximize rewards to clients, employees, shareholders and other stakeholders.

B3 Innovative Products – The Executive Plan Range of Products

RD Zikalala (Executive Managing Director)

most business to prosper, by virtue that she is the biggest employer and biggest spender, more especially to an economy of our size. This challenges the production sector of the economy and these are our clients, hence the negative effects on our business.

SA Mag: What do you think Swaziland needs?SRIC: It is obvious that Swaziland’s revenue declined drastically more especially the SACU receipts therefore the leadership must appreciate the challenges and adjust expenditure to be in line with our declining revenue. Government needs to embark on projects that will stimulate revenue. We need a government that will direct a greater part of its expenditure towards

health and education due to the fact that we have a huge population below the age of 25 with a very high HIV infection rate.

SA Mag: Have you identified a clear market strategy? What is it?We have definitely identified a clear market strategy. We shall not disclose at this stage for obvious reasons. What we can say is that we are constantly looking at ways to develop actuarially sound products to offer to the Swazi Nation. The industry is growing as more and more people are being exposed to insurance literacy through various media houses. We are committed to continue providing world-class service to customers, continuing to develop competitive products that are relevant to the Swazi economy.

SRIC, thanks for answering our questions. We

wish you and the country (our neighbours) well. END

Swaziland Royal Insurance Corporation FEATURE

S waziland is a country long stalked and now engulfed by the shadows of fi nancial crisis. Africa’s last absolute monarchy, with a mostly impoverished population of one and a quarter million is in fi nancial ruin; running out of cash

for salaries, health care and fuel. Seventy per cent of the population lives on the

equivalent of R16 or less a day and one in four Swazis aged 15 to 49 is infected with HIV/AIDS; the highest prevalence in the world.

Struggling to stay solvent after losing last year 60 percent of its revenues from a regional customs union - the government’s


Swaziland continues to sink in a financial and social crisis seemingly without end. Could

the reform-mandated SwaziBank be a key to stability and recovery? Its dynamic MD Stanley Matsebula believes so, as South Africa Magazine reports.By Colin Chinery

S W A Z I B A N Kthe saviour for a country in crisis?

S waziland is a country long stalked and now engulfed by the shadows of fi nancial crisis. Africa’s last absolute monarchy, with a mostly impoverished population of one and a quarter million is in fi nancial ruin; running out of cash

for salaries, health care and fuel. Seventy per cent of the population lives on the

equivalent of R16 or less a day and one in four Swazis aged 15 to 49 is infected with HIV/AIDS; the highest prevalence in the world.

Struggling to stay solvent after losing last year 60 percent of its revenues from a regional customs union - the government’s


Swaziland continues to sink in a financial and social crisis seemingly without end. Could

the reform-mandated SwaziBank be a key SwaziBank be a key SwaziBankto stability and recovery? Its dynamic MD Stanley Matsebula believes so, as South Africa Magazine reports.By Colin Chinery


main source of income – Swaziland’s deepening fi nancial crisis has triggered a series of unprecedented demonstrations by public servants over salary cuts. Schools have shut down and the country’s only university failed to reopen for the New Year owing to lack of funds.

Echoes of Greece? Greece’s government debt, at 155 percent of gross domestic product, is at unsustainable levels. In Swaziland’s case the equivalent number is a humble 20 percent. Indebtedness is not Swaziland’s principal problem. It has a cash-fl ow crisis and been unable to secure domestic or foreign funding to meet the shortfall.

The Government’s fi scal position has been spurred by stagnant economic growth, a vast pork barrel public sector wage bill and reckless expenditure. According to Minister of Finance, Majozi Sithole, each year the country loses nearly double the annual social services budget to corruption.

Earlier this year Swaziland asked South Africa for a loan after the African Development Bank turned down its plea for help. With another neighbour - Zimbabwe - in economic crisis, Pretoria agreed, fearful no doubt of Swaziland’s imminent collapse. But Swaziland has yet to sign the $368-million loan

agreement. Baulking at the pre-requisite internal reforms demanded – a roadblock to an International Monetary Fund bail out – seems the most probable explanation.

This is the scenario facing SwaziBank, pivotal player in the economy and major driver and potential saviour of national recovery.

SwaziBank has a Government mandate to steer the development of the economy at all costs, including promotion and development of the economy and maximum participation of the citizens of the country. Domestic savings and resources for development are to be mobilised and key sectors such as industry, agriculture, mining and tourism backed. The mandate is exclusive to SwaziBank and no other bank in the world has it, says Managing Director Stanley Matsebula.

SwaziBank is preparing to pump in E500 million into the country’s economy, mobilising more resources from its cooperating partners in and out of the country.

“We are focusing on job creation projects, value adding projects and so on, which will come in handy to government as these will serve as an extended revenue base,” says Matsebula. “The bank has a huge base of big companies doing business with it. During this cash flow crisis

SwaziBank FEATURE

SwaziBank has demonstrated

what an enlightened

public/private partnership can achieve in developing

African economies, as

many other banks are

primarily only interested in

profits and not the people

Stanley Matsebula, MD SwaziBank

main source of income – Swaziland’s deepening fi nancial crisis has triggered a series of unprecedented demonstrations by public servants over salary cuts. Schools have shut down and the country’s only university failed to reopen for the New Year owing to lack of funds.

Echoes of Greece? Greece’s government debt, at 155 percent of gross domestic product, is at unsustainable levels. In Swaziland’s case the equivalent number is a humble 20 percent. Indebtedness is not Swaziland’s principal problem. It has a cash-fl ow crisis and been unable to secure domestic or foreign funding to meet the shortfall.

The Government’s fi scal position has been spurred by stagnant economic growth, a vast pork barrel public sector wage bill and reckless expenditure. According to Minister of Finance, Majozi Sithole, each year the country loses nearly double the annual social services budget to corruption.

Earlier this year Swaziland asked South Africa for a loan after the African Development Bank turned down its plea for help. With another neighbour - Zimbabwe - in economic crisis, Pretoria agreed, fearful no doubt of Swaziland’s imminent collapse. But Swaziland has yet to sign the $368-million loan

agreement. Baulking at the pre-requisite internal reforms demanded – a roadblock to an International Monetary Fund bail out – seems the most probable explanation.

This is the scenario facing SwaziBank, pivotal player in the economy and major driver and potential saviour of national recovery.

SwaziBank has a Government mandate to steer the development of the economy at all costs, including promotion and development of the economy and maximum participation of the citizens of the country. Domestic savings and resources for development are to be mobilised and key sectors such as industry, agriculture, mining and tourism backed. The mandate is exclusive to SwaziBank and no other bank in the world has it, says Managing Director Stanley Matsebula.

SwaziBank is preparing to pump in E500 million into the country’s economy, mobilising more resources from its cooperating partners in and out of the country.

“We are focusing on job creation projects, value adding projects and so on, which will come in handy to government as these will serve as an extended revenue base,” says Matsebula. “The bank has a huge base of big companies doing business with it. During this cash flow crisis

SwaziBank FEATURE

SwaziBank has SwaziBank has demonstrated

what an enlightened

public/private partnership can achieve in developing

African economies, as

many other banks are

primarily only interested in

profits and not the people

Stanley Matsebula, MD Stanley Matsebula, MD SwaziBank


in the country we have managed to keep many of them afloat rather than allowing them to foreclose.

“SwaziBank has demonstrated what an enlightened public/ private partnership can achieve in developing African economies, as many other banks are primarily only interested in profi ts and not the people from whom they derive those profi ts.”

The Government is SwaziBank’s sole shareholder, but plans for partial privatisation are fast moving to fruition. This was one of the main issues the IMF wanted to have sorted out during its last visit to the country. The IMF says it will assess progress when it returns, believing that privatisation could help government generate revenue. The change of share structure at SwaziBank is expected to open fl oodgates for the privatisation of other parastatals.

Swaziland Prime Minister Sibusiso Dlamini says partial privatisation is important to accelerate completion. “This partnership between the private sector and government will provide improved technology and fi nancial products, as well as an injection of cash and the effi cient and competitive ethos and techniques of the private sector. As we look forward to opening that new page in SwaziBank’s evolution, we trust that the new infusion of the private sector dynamism and innovation will also be of conspicuous benefi t to the development arm of the bank.”

Stanley Matsebula agrees. “Gearing itself to an even bigger role, especially with the experience we have had with the Government’s fi nancial problems means SwaziBank should take a more active role. Many businesses depend on Government contracts for survival, and the Bank could maybe assist some of them to look beyond, diversify, and lessen this dependency. We are working on this and will focus on it increasingly in the future.

“What differentiates us from other banks is we offer long-term fi nancing across all sectors, and are more interested in development fi nance, job creation and value-adding projects. And this is what the national economy needs. Other banks tend to be more short-term focused.”

Matsebula has been the major force behind the dramatic turnaround of the SwaziBank from a loss-making institution - at one stage near to closure. Under his astute leadership it has made a dramatic turnaround, and continues to grow at a remarkable rate and achieving unprecedented profi tability.

Despite the prevailing economic environment, SwaziBank has managed to increase its deposits substantially, recording deposits for the fi scal year ending last March of E934,064 million (the Swaziland currency is pegged to the Rand) compared with E811,529 million in the previous year.

“Our deposits were magnifi cent, particularly given that the economy is not performing well. However, we’ve been growing our deposits far above infl ation, which is a great achievement,” says Stanley Matsebula.

“When we took over the Bank I realised public confi dence in the bank was at its lowest ebb and


His Majesty King Mswati III poses

with SwaziBank Cup soccer champions

immediately after the fi nals.

Metropolitan Life Swaziland is a subsidiary of MMI Holdings Limited group, a listed entity created through the recent merger between Momentum and Metropolitan.

The policy of the international operations of MMI Holdings Limited, Metropolitan International, is to seek in�uential local partners who will take a meaningful shareholding in the business.

Metropolitan Life Swaziland subsequently entered into a strategic partnership with Swazi Bank where the latter purchased a 33% stake in the life insurer. Swazi Bank brings complementary strengths to the partnership including, knowledge and experience in the local market and an established network of relationships with key role players that supports business growth.

Metropolitan’s core values focus on people, trust and performance and similar themes exist in the way Swazi Bank conducts its business.

METROPOLITAN LIFE SWAZILAND’S PARTNERSHIP

WITH SWAZI BANK

so our fi rst task was to restore it. People are now starting to feel that this is a bank for the future. In 2007 when the credit crunch struck the world we found that the big corporates needed medium and long-term fi nance and we came in handy for them to provide it. In the beginning we did not have a lot of these big corporates, but now many of them are doing business with us.”

“We provide exceptional customer service and identify the needs of our customers with whom we have exceptional relationships. Many have been with the bank since it was fi rst established. “

With a Masters Degree in Applied Economics from the American University, Washington D.C., majoring in money and banking, he has held senior management positions in and outside Swaziland. Before his appointment as Managing Director of SwaziBank in 2000, he worked for different organizations in Swaziland and in South Africa, including the Development Bank of South Africa.

When Nelson Mandela’s Government took power, Matsebula was seconded to the President’s offi ce as Financial and Economic Advisor responsible for the transfer of funds all over South Africa for reconstruction and development programmes. Now his sights are on rescuing and then growing the Swaziland economy.

“As a Bank we want to see more internal and external investments to ensure more jobs and more enterprises set up. New industries will also bring more revenue to the Government, but at the same time the Government in the short and medium term needs to succeed in reducing expenditure in line with current revenue. In the long-run the Government should look at its revenue expansion, creating more jobs, increased investment in Swaziland and perhaps bringing a better image for the country.”

What would he say to potential investors? “That they should not look at the negative publicity from which the country is currently suffering. Instead focus on the medium and long-term prospects for Swaziland… and these are very good and rosy. Swaziland is very good for agriculture, mining and exploration – much of which awaits exploitation - and is a very attractive country for tourism. It’s very important we work with potential investors and then we can set about removing obstacles, which the country is more than ready to do away with.

“The SwaziBank will continue to play centre stage in the economy. We know we are managing a very diffi cult mandate where we combine development and commercial banking, but one assists the other and we shall play a major role looking into the future.

“Our challenge is to make sure we provide development fi nancing in a sustainable way, assist in job creation and create value-adding in the economy. It is a role and an opportunity to which we are committed.” END

SwaziBank FEATURE


Lion of Africa Insurance is South Africa’s first insurance company to achieve a Level 1 Broad Based Black Economic Empowerment (B-BBEE) rating.By Ian Armitage

T h E h U N g R Y

L ion of Africa Insurance is one of South Africa’s leading short-

term insurers, operating in the commercial and personal lines market segments with a range of specialist insurance products.

Jonathan Holden, Operations Executive, says Lion covers “many of the Top 100 JSE listed companies” and is the largest insurer to the local authorities sector.

“We have, I think, innovative and uniquely tailored products,” he explains.

Lion of Africa has a national footprint and extensive broker network and is at the forefront of short-term insurance solutions in South Africa, Holden says.

“Founded in 1999, Lion of Africa Insurance plays a leading role in empowerment and transformation within South Africa’s financial services sector.”

In 2010, Lion became the first local short-term insurer to achieve Level 1 Broad-Based Black Economic Empowerment (B-BBEE) status.

Speaking about the achievement, the CEO of Lion of Africa, Adam Samie, said that he was proud that the group was contributing to the development of previously disadvantaged members of the population in South Africa.

The transformation of the insurance group was not only about compliance.

“Lion of Africa achieved Level 1 status due to a holistic approach to transformation and the empowerment of our society. This ideal, coupled with fundamental improvements in our procurement, and enterprise development activities, has ensured that we remain the leaders in transformation in our market sector,” Holden explains.

“We have also made substantial improvements in our employment equity and skills development programmes.”

According to Samie, transformation in the short-term insurance sector is not about mere compliance, but about contributing to the development of the previously disadvantaged people in South Africa’s multicultural society, ensuring that the country can ultimately achieve its economic goals on a sustainable basis to the benefit of all.

This is a view also held by Holden. “True empowerment will aid South Africa’s market share on the continent, specifically in the short-term insurance sector, which, while small in global terms, is the largest segment by far on the

Lion of Africa FEATURE


Founded in 1999, Lion

of Africa Insurance plays a leading role in empowerment

and transformation

within South Africa’s financial services sector

Jonathan holden, Operations Executive

continent. This market represents one of the biggest opportunities for new products and growth in our country and I believe local companies can play a key role in servicing other African markets, as well as other emerging economies globally.”

In addition to this commitment to transformation, Lion’s commitment to its clients is also first-class. “We find solutions, meeting all insurance needs and challenges head-on, to ensure that our customer base continues to grow.

“As much as we tailor our products to the specialised needs of our clients, we also recognise that insurance has become a global business. We have excellent relationships with some of the largest and leading players in the global market and we pride ourselves on simple and effective business solutions.”

In July, Lion of Africa celebrated the opening of its new head office in Sandton.

“We have enjoyed considerable success to date,” says Holden. “We now have a head office fitting of our brand which is located in the heart of South Africa’s financial district. Our new footprint will ensure that our company goes from strength-to-strength,

cementing our position as one of the country’s leading insurers.”

In April, Lion of Africa acquired the insurance portfolio managed by specialist engineering and contracting underwriting manager, RHM Technical Services (RHM). The acquired portfolio – which Holden says will be consolidated into that of the Lion of Africa Engineering Division - includes prominent JSE-listed companies amongst others. “The acquisition of RHM further enhances Lion of Africa Insurance’s position as one of the leading engineering insurers in the local market,” he says. “Lion of Africa has gained an enviable reputation as one of the leading providers of specialist short-term insurance for the commercial market and RHM will assist us in further building on this product offering.”

Holden says the acquisition will also position the company strategically to compete for a significant segment of Africa’s multi-billion


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dollar infrastructure developments. “The injection of RHM’s technical engineering expertise will effectively position us as one of the key players in this specialised insurance fi eld on the African continent.”

RHM has acted as underwriting managers for Lion of Africa Insurance since January 2000, Holden adds, managing the company’s specialist engineering portfolio. “The RHM portfolio has made an enormous contribution to our growth and profi tability over the years and the consolidation of the portfolio under the Lion of Africa Insurance banner is a natural progression for the business,” he says.

RHM staff moved into Lion of Africa’s national headquarters in Sandton.

“This is a very exciting time for Lion,” Holden concludes. “I think by the end of the year we will see a new record top line or gross written premium for the company. We are dominant in the local authority and municipal space. We’ve also become one of the top players in the large corporate space. One of our target areas now is the mid-market commercial client base. It comprises a substantial element of the South African insurable market and our growth plan naturally must include this sector.

“We are also looking at some niche or specialist insurance lines, which we would like to start growing out, making sure we have the right expertise and systems in place to complement our already strong core markets.”

Lion of Africa’s growth over the last couple of years has been unrivalled and impressive. The future most certainly looks bright. END

Lion of Africa FEATURE


Altech UEC recently opened one of the worlds most advanced set-top-box factories. South Africa Magazine learns more.By Ian Armitage

P R E P A R I N g F O R T h E

T echnology company Altech UEC recently opened a

high-tech manufacturing facility outside Durban. Director of Manufacturing Jannie Viljoen told South Africa Magazine that it is a world-class electronics manufacturing facility with a manufacturing capacity of over three million digital set-top-boxes per annum. These Set-top-boxes are needed as South Africa and sub-Saharan African countries convert their television signals from analogue to digital transmission (DTT). “From this new hub, we will be able to deliver units to millions of homes across the region as part of the DTT migration programme,” Viljoen says. “We were a company that, through years of organic growth, had set up production in multiple facilities. It was incredibly inefficient. It was time for consolidation, to bring everything back under one roof to improve efficiencies and to give us a platform for further growth. We took the decision to relocate to a bigger premise and we are now benefiting from that.”

The Southern African Development Community (SADC) declared DVB-T2 as the digital terrestrial television standard of choice for the region. The target for the switch off of analogue TV transmission being December

Altech UEC FEATURE

We were a company that, through years of organic

growth, had set up production in multiple facilities. It was

incredibly inefficient


World Class electronic assembly capability

State of the art 13,500m2 manufacturing facility in Mount Edgecombe, durban

2013, with DTT signals expected to reach 96 percent of South African households in April of that year. Demand for set-top-boxes in South Africa expected to reach more than nine million, and a further 30 million required for the rest of sub-Saharan Africa. In response, Altech UEC took the decision to consolidate six buildings on two sites into a single, state-of-the-art, 13,500 square metre factory in Mount Edgecombe, Durban. The factory is vertically integrated offering advanced electronic assembly, plastic moulding capabilities as well as final integration inclusive of testing and packaging for dispatch.

“Our investment in this facility is in direct support of government policy with regards to employment creation,” Viljoen says. “Not only are we employing over 600 people in the factory alone, but local services such as packaging, delivery and installation will create multiple small

business opportunities in the years to come.” The associated economic benefits for South

Africa are huge – from technical support to retailing, all components of the value chain will benefit. The digital migration will see the introduction of more channels resulting in an increased demand for especially regional-based programming. This too will create more jobs for local content producers and their supply chains.

The story of Altech UEC is remarkable. After the arrival of television in South Africa in 1976, South Africans were limited to four channels. Supporting their partners, Altech UEC has

revolutionised television viewing in South Africa. In 1995, MultiChoice launched DStv and Altech UEC was given the contract to supply the digital decoders. Since, Altech UEC has designed and manufactured a number of ‘world first’ products such as the first DualView decoder in


Altech UEC FEATURE

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2002 and the first Digital Satellite Personal Video Recorder (PVR) in 2005.

“We design and develop digital set-top boxes and interactive software solutions for pay-TV and free-to-air operators in South Africa and internationally. We offer our products in satellite, terrestrial, cable, and IP transmission modes; our products range from entry level standard definition set-top-boxes to feature rich, high definition personal video recorders, ” says Viljoen. “At Altech UEC we are optimistic about the future. We are prepared for the increased demand for locally manufactured set-top-boxes for the imminent DTT migration programme.

“Government is bullish in terms of job creation, so I believe that there will be a lot of support for the manufacturing industry, a lot of focus on ICT to drive job creation and I also believe the electronic assembly industry will see a lot of investment in the next two to three years.

“Are we well-placed to benefit? I think so,” Viljoen continues. “What differentiates us in South Africa is our location, experience and capacity. Since manufacturing DStv decoders in our own factory from 1997 we have shipped over 12 million decoders to various locations both locally and internationally. Using over 1.5billion components per annum gives us enormous purchasing power and flexibility with our vendor base. We can leverage in terms of our manufacturing cost – the more volume you get in a facility, the better your cost structures become.

“With our design, development and manufacturing capabilities Altech UEC has been very successful in the set-top box market. Expanding our organisation to offer advanced services and systems integration, together with comprehensive after sales support, we are actively in pursuit to dominate on the African continent.” END


Business transformation puts Zurich south africa in a strong position

Chris grieve, Executive head - Sales and Market

Underwriting at Zurich South Africa, talks

transformation, ambition and strategy.

By Ian Armitage

Z urich Insurance Company South Africa Limited (formerly SA Eagle) has been on a journey - a

journey of transformation. It has done so, says Chris Grieve, Executive Head - Sales and Market Underwriting, to “achieve future profitable growth aspirations and to provide the market with world class service”.

Zurich has taken decisive action across all areas of its business to enhance the focus around brokers and customers and to improve operational capabilities, so as to strengthen “market position and build a solid operating platform for the future,” he explains.

Grieve was appointed to the position of Head of Market Underwriting in November 2010 and subsequently took over Sales, becoming Executive Head of Sales and Market Underwriting in February this year. He has spent 30 years in the industry and gained invaluable experience from his previous roles with Mutual & Federal and, more recently, Willis Re where he held the positions of Executive General Manager and Managing Director respectively. He plans to bring industry experience in strategic leadership across underwriting, broker relationships and business development which, given what Zurich is planning to achieve, is vital.

“Zurich’s vision is clear – to be the leading empowered insurer in its chosen markets,” he says. “We will grow and develop the organisation bringing the Zurich global capability to Africa, and to do this, it was essential that we take the necessary actions to create a solid foundation for the future; we’ve been doing that over the last 18 months and we are now starting to see the results.

“The changes we have made are all about making the right choices, thinking

Zurich South Africa FEATURE


about how to enhance the focus around brokers and customers. We plan to be the leader in our chosen markets and to get us there we had to put in place solid building blocks to ensure that we achieve the targets we have set - that meant we had to take some serious decisions about the way we run our business.”

Zurich focused, amongst other things, on getting the right people in the right roles, Grieve says. “The transformation has already paid off. Our results have been pleasing,” he explains. “We have seen a decline in business volumes due to some of the action taken, but our ongoing focus around our plan is really paying off – I’m particularly pleased about the improvement in underwriting results despite challenging market conditions and lower premium volumes. We’ve

also implemented a number of market-leading claims initiatives which have had a positive impact on the cost of claims and service levels.

“We expect to improve our performance through the delivery of a focused growth strategy – and we will continue to invest in enhancing our propositions and service. As an example, we have recently launched our new Broker Value Proposition and this has gone down extremely well amongst the broking community. Very simply, we need to make it easy for our brokers to do business with us and further initiatives to achieve this objective will be rolled out in the coming months.”

Regarding Zurich South Africa’s prospects, he continues: “Having reshaped our organisation and delivered an improved set of financial results, we are now in a strong


We expect to improve our performance through the delivery of a

focused growth strategy

Chris grieve, Executive head -

Sales and Market Underwriting

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Zurich South Africa FEATURE

position to take ourselves to the next level. “Our multi-segment multi-distribution

business strategy places a clear focus on identifying both distribution and market segment opportunities that will support future growth – we are all confi dent that the outlook is really positive.

“Zurich is a global super brand and we want to exploit this to the maximum to ensure that the African market benefi ts, as the rest of the world does.”

With signifi cant local and international sales, underwriting and claims expertise supporting Zurich’s ambitious plan, Grieve says it has “every opportunity” to increase market share and reinforce its position as a leading insurer. Zurich in South Africa is headquartered in Johannesburg and has a network of offi ces throughout the country. It has a subsidiary insurance company in

Botswana and an associate company in Mauritius. The local operation reports into Dubai.

“Taking into account the strong growth potential of Africa and the fact that the region has been relatively resilient through the economic turmoil, it is an important market for Zurich,” Grieve says. “Our local team has put hearts and souls into strategic thinking and attracted industry expertise in sectors relevant to the region and our robust plans.”

Zurich operates in the domestic, commercial, small commercial and Corporate segments, including the specialist Marine and Engineering markets, transacting all lines of business within these segments. The company markets its products almost exclusively through insurance brokers who provide very valuable advice to clients on product, price and claims assistance.

Website: www.zurich.co.za END

innovation innovation innovationI N S U r A N C e innovation innovation innovationI N S U r A N C e innovation


Backed by Santam, Centriq Insurance specialises in risk finance, cell captives, underwriting and affinity business. South Africa Magazine learns more.

By Ian Armitage

C entriq Insurance, through its short-term and life insurance subsidiaries, has been providing

clients with risk fi nance, cell captives, underwriting management and affi nity insurance solutions, amongst others, for over a decade now.

“Established in 1998, we serve JSE-listed companies, multinationals, state organisations, large affi nity groups and specialist underwriters, as well as trade unions, retailers, associations and employee groups, to mention but a few,” says CEO Michael Blain, a Chartered Accountant who also holds a Bachelor of Commerce and a Bachelor of Accounting degree from the University of the Witwatersrand and an MBA from Wits Business School.

Having held various managerial positions in the fi nance and insurance sector, including that of Assistant General Manager of Finance and Special Projects at Commercial Union, Finance Director at PSG Anchor Life, and General Manager: Business Development at the Nova Group, before being appointed at Centriq Insurance as CEO in 2005, Blain fi nds the South African insurance sector both gratifying, exciting and challenging. “The fact that the insurance industry is constantly evolving makes it an interesting fi eld to work in, leaving one with a sense of excitement as you continuously need to adapt,” he says.

It therefore comes as no surprise that Blain’s primary goal is to ensure that Centriq remains relevant and successful. “We are still a young but established organisation, continuously trying to carve out a niche for ourselves. Therefore, we’re constantly working on taking our business model

Centriq Insurance FEATURE


Backed by Santam, Centriq Insurance specialises in risk finance, cell captives, underwriting and affinity business. South Africa Magazine learns more.

By Ian Armitage

to the next level,” he says.This is evident in the

ambitious growth targets Centriq has set for itself. With a current annual revenue of in the early billions, Blain says the next step for the company is to double the fi gure by 2015. “It is ambitious, but achievable with the right focus and commitment. The main challenge, however, being what the global economy will do. Other than that, I believe there is a need in the local market for fresh ideas and innovation, and ethical, reliable partners – a gap we aim to fi ll,” he says.

Overall, Centriq is performing well. “Our fundamentals are good and

our business partners are all holding their own in terms of their growth,” says Blain.

He adds that to remain competitive in the insurance sector, Centriq Insurance strives to be the best in what they do.

As opposed to traditional underwriting models, Centriq also believes in offering clients and business partners’ sustainable, competitive and tailor-made solutions. “We do not try to do everything ourselves. Centriq chooses to partner with skilled and experienced partners who possess particular capabilities and business acumen in their selected target niches. Our portfolio features a uniform


profi le in which partners embrace a risk-sharing philosophy and understand and practice sophisticated risk management principles. This is achieved via a consultative, problem-solving approach while direct dialogue with clients enables us to customise insurance programmes in response to our clients’ unique concerns and objectives,” says Blain.

This outlook saw Centriq being assigned an A+ grading by the Global Credit Rating Company (GCR) for the third consecutive year recently, based on its ability to pay claims; its specialised product offering as key differentiating

left - right: Michael Blain - CEO, Mark Stone - Business Head Affi nity, Martin Penny - Business Head Corporate, Martin le Roux - Business Head UMA

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After years of inspiring performances in its own productions, KEU brought its flexibility and creative dexterity to the Centriq stage earlier this year.

The captivating combination of benefits enhances performance and ensures that projects in the film, television, events and entertainment industries get the right cover for their specific risks. Tailor-made insurance solutions have always been a hallmark of our performance. Add an insightful portrayal of unparalleled service

excellence and the final product is worthy of energetic applause. KEU Underwriting Managers CC underwritten by Centriq Insurance Company Ltd, will partner only with

registered short term brokers to ensure your risk is covered.

factor; its net profi t; its conservative investment approach; its ability to maintain a comfortable solvency margin at promoter level; and its ability to manage credit risk relating to third party sponsored cells. Centriq’s innovative approach is bearing fruit. The company’s fresh approach to business, profi t-sharing and the formation of strong partnerships has made it a popular choice across the niche sectors it operates in, while differentiating them from the product and service offerings of Santam – which has 100 percent shares in Centriq.

Going forward, Blain says that Centriq will continue to strengthen its position in the market place through the provision of high-level underwriting facilities by means of its underwriting management agency (UMA) partnership model; contingency policy offerings and cell captive

Centriq Insurance FEATURE

facilities, amongst others. “We will also continue to invest in staff with

multi-functional expertise while maintaining our focus on systems infrastructure to further improve efficiency and enhance risk management.”

Given the above, Centriq’s success lies in their excellence, creativity, innovation, and strong, transparent partnerships.

“Traditional insurance companies have not really ventured into this space and traditional insurance firms have not been able to offer tailor-made solutions to customers, especially as far as companies are concerned. And this is where Centriq’s business model will continue to play an integral role as it enables us to meet our clients’ exact needs through the design of suitable products, which allows them to on-sell it,” concludes Blain. END

reap


The Afrifresh Group is a leading global exporter of fresh fruit, food products and wine from South Africa. Roy Fine, new

development director, talks to South Africa Magazine.

By Ian Armitage

Y O U

sowW h A T Y O U

T he Afrifresh Group is a leading global exporter of fresh fruit, food products and wine from South Africa.

The group, which was founded in South Africa in 1992 as an import business to supply retailers with “out of season” fruit, has acquired extensive farmland throughout the country giving it direct infl uence over quality and consistent control of supply.

This dynamic group continues to expand and the current CEO, Chris Conradie, is one of the original founders.

“Following the deregulation of the fruit export industry in 1997, we saw an opportunity to start exporting South African fruit all over the world; the government had deregulated the industry and dismantled many fruit trading boards, leaving global customers with direct access to export quality fruit,” explains new development director, Roy Fine, taking up the story. He says that, prior to deregulation, there were many control boards including the likes of the Deciduous Fruit Board, through which every producer had to work and each board would determine which distributors could be supplied.

“It was a single-channel market, which restricted activity and made it difficult to trade in. Deregulation meant that it was possible to deal with individual companies directly. We took advantage of that opportunity to start exporting and in 1997 I started Sunpride (Cape) Pty Ltd with my family, which was one of the first new export fruit companies; The Fine Family has been in the produce industry in South Africa since 1908, and my late uncle Leo Fine, was Chairman of Unifruco and later Capespan for many years.”

The family has origins in farming that date back to the 1940s and strong roots in the Elgin Valley, Fine says.

“In 1999, in one of the fi rst mergers in the fruit export sector, I merged Sunpride with another new and emerging exporter, Afrifresh. With the benefi ts of economies of scale and added expertise, the enlarged Afrifresh Group quickly became one of the top fi ve South African fruit exporters,” he adds.

Initially the group exported all fruit lines, but found it was better to specialise, and later focussed on grapes and citrus, as they were both large volume lines and were counter-seasonal, allowing the management and team to operate productively, 12 months of the year.

“We also supply local supermarket chains such as Woolworths with part of their programmes and plan to grow this local business, but at least 70 percent of our fruit is currently exported,” says Fine. “The Afrifresh Group is not only involved with farming and export fruit, but has also established a successful wine business called African Pride Wines (Pty) Ltd and a food business called Berfi n (Pty) Ltd; we also have a raisin factory and business called Fruits du Sud. These businesses strengthen our relationships with the major international supermarkets, as they see us as not

The Afrifresh Group FEATURE


I will look at new projects, new farming

opportunities and maybe entering new markets

Roy Fine, Development Director

just as fruit suppliers, but rather as trading partners.”

The Afrifresh Group’s philosophy has always been to control “the chain”, and as a result, over the years, it has integrated backwards into primary production, as well as forwards into pack-houses, logistics and distribution.

According to Fine, the Group currently has 22 farms and numerous pack-houses, with a total farming area of over 30,000 hectares, and support the farms with a top technical and management team.

“The Group marketing department is responsible for marketing our fruit all over the world and there is virtually no country

we don’t export to. While our volumes continue to grow, so have our markets expanded,” Fine says. “The EU represents approx 40 percent of total volume, Asia comes next, but we also directly supply India, Japan, Malaysia, Indonesia, China and Russia, with the latter being probably our fourth largest market.

“As we specialise in grapes and citrus specifi cally, which are counter-seasonal, we export grapes from mid-November to May, and citrus from April to October.”

Fine’s challenge is to look at new opportunities, while Chris Conradie looks after the daily operations of the business.

“What does my role essentially boil down to? Well, I will look at new projects, new farming opportunities, new supermarket clients, and maybe entering new markets; I also look at business development in the sector as well as growth funding and investors.”

Earlier this year, Standard Chartered Private Equity bought 30 percent of the Afrifresh Group for US$20 million.

According to Fine, the new funding will support the company’s plans to expand its global footprint as a producer and exporter of citrus and table grapes.


“We are working on increasing our local production and export potential, which includes increasing exports to Asia. We are also looking at the opportunities in Sub-Saharan Africa and how we can use our IP to get involved and add value. Over the last few years Afrifresh has grown mainly through farm acquisitions, which has helped us create an integrated, profi table and sustainable business.”

Further expansion is on the cards. “Chris, myself and our senior team, believe that the bigger picture is that the world population is growing at an alarming rate (just passed the seven billion mark) and against this, that arable land is diminishing – so, we are essentially heading for a “train smash” in so far as more and more people are seeing higher food infl ation and less and less available product. We see this problem also as an opportunity to grow the farming side both in SA and eventually outside SA as well, and with our committed, passionate and qualifi ed team, I believe we can take up the challenges.

“Currently we don’t have any farms out of SA but we are looking at farming opportunities in Mozambique, Angola and Zambia. Down the line, when things improve in Zimbabwe, we would certainly look there too.”

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Afrifresh aims to expand to meet future demand. “We see the agricultural sector as dynamic and exciting and want to expand and we are continually looking for ways to increase our farming operations and hectarage. The market and demand is certainly growing. South Africa is a very good source of top quality produce with a good location, with world-class infrastructure and logistics. We are certainly very bullish about the future.”

Fine says Afrifresh is always looking for more “partnerships” and “investors” with which the company can work and use their expertise and huge knowledge to take the business into the future.

“I believe South Africa and Southern Africa can play a very important role in addressing the world’s food security problems. The world’s population continues to grow, and resources are diminishing. We have to do something now to ensure food is available in the future. We are looking to increase the yield of crops per hectare, and maximise our land use, but we also

want to grow by developing more good arable land. I can see a lot of investment coming into Southern Africa and am having discussions with a number of potential investors from the UK, China, Europe and the Middle East to achieve that. There are great opportunities for agriculture.”

From humble beginnings in 1997, employing a few people, the Afrifresh Group has created many new jobs and opportunities, trained and assisted numerous people and has today a highly effi cient team in excess of 80 people, and a farm work-force of more than 3000, with turnover in excess of R1 billion.

Most importantly, everyone in the Group is passionate about the business and embraces the challenges ahead.

“The prospects are good,” concludes Fine. “We see a bright future for agriculture. We have the legacy, people, passion, expertise and vision to build on our past successes.” END

The Afrifresh Group FEATURE

School Aid 4Afria t/a Touch Africa, UK Office Arnel House, Peerglow Centre, Marsh Lane, Ware, Herts SG12 9QL, Tel: 01920485333, Fax: 01920484477, Cell: 07773844444 Email:[email protected], Website

http://www.touchafrica.eu, Registration Number 1137365, Touch Africa, South African Office, 161 Heugh Road, Walmer, Port Elizabeth, 6001, Tel: +27 (0) 41 581 5335, Fax: +27 (0) 41 581 5334, Cell: +27 (0) 76 170 449

Email: [email protected] Website: http://www.touchafrica.info Section 21 Company Registration Number 2007/024885/08

NPO. Reg. No: 75773

Touch Africa is a non-profit organisation whose mission it is to “make school a better place” for previously disadvantaged children in South Africa. We have offices in both the UK and South Africa and have been operating since 2007.

The focus of our energies is on children between the ages of 2 and 18 and the scope of our work includes but is not limited to the:

rehabilitation of schools and provision of basic education equipment electrification and provision of ablution facilities provision of self-sustaining economic activity school feeding sporting facilities installation of IT and Science Laboratories

Our Vision: Touch Africa’s vision is to improve education facilities particularly in rural areas. We strive to uplift and enrich the learning experience, help to develop a passion for learning and therefore help to make previously disadvantaged children valuable citizens of the future.

Background: Vast areas of South Africa are rural where access to water, electricity and transport and access to information is either non-existent or limited. Children therefore are not getting equal opportunity to education.

Government: Deputy President Kgalema Motlanthe has commented that backlogs in infrastructure are hugely problematic and that partnership between the government, the private sector and funding partners is crucial.

You can help us by adopting a school in South Africa Contact Richard Cook on 019 204 85333 or email [email protected] or Elise Fish on 027 (0) 76 170 6449 or email [email protected]

SA Mag - Issue 20

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Transcript of SA Mag - Issue 20