Top Banner
THE AFRICAN BUSINESS JOURNAL BUSINESS South Africa’s unique economy INTERVIEW Concrete Manufacturers Association COMPANY FOCUS TFG Sports DECEMBER 2011 Volume 2 Issue 12 www.tabj.co.za IN THIS ISSUE
174

The African Business Journal Dec 2011 - John Pinching

Dec 18, 2014

Download

Documents

John Pinching

The African Business Journal (TABJ) is a digital publication with an intoxicating cocktail of news articles, lifestyle features and company profiles
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: The African Business Journal Dec 2011 - John Pinching

The

AfricAn Business Journal

BusinessSouth Africa’s unique economy

interviewConcrete ManufacturersAssociation

Company foCusTFG Sports

december 2011 Volume 2 Issue 12 www.tabj.co.za

IN THIS ISSUE ►

Page 2: The African Business Journal Dec 2011 - John Pinching

2 SECTION � Title

maerskline.com Proudly serving AfricaHow do we serve Africa? With the continent’s best network.

What makes our network the best in West Africa? You do – because it’s your wishes, concerns, ambitions and growth targets that lie behind every decision we make.

We offer the market’s best overall coverage, fastest transit times and most frequent sailings in West Africa. Add to that our

acknowledged leadership in on-time delivery and our attentive, personalised customer service, and you’ve got a world-leading partner who is reliable, flexible and easy to work with.

If there’s anything else you could ask for, let us know. We’re listening to Africa.

West Africa services – New & improved!• 22 custom-built ships, the largest in West Africa• The market’s best network• Unmatched schedule reliability• Personalised service and strong local presence

R1124_Africa_African_Business_Journal_letter_AD2.indd 1 12-07-2011 21:13:32

Page 3: The African Business Journal Dec 2011 - John Pinching

EDITOR’S Note

Salam wa alEIkum!

Ye Gods, the world has changed since I

last spoke to you, dear reader.

To say that it’s been an interesting month

in Africa would be an understatement. The

freedom fighters of Libya have had the final

say in an old fashioned battle between the

forces of good and evil.

A certain mad dog, whose name they

choked on for so many years, will never speak

again, and for Libya that is a pretty good result.

For the first time in over four decades its

people can breathe easily and, consequently,

our cover story focuses on the extraordinary

revolution, liberation and future of Libya.

This issue also takes a look at another

significant swing of the political pendulum—

this time in Zambia—where the new

government means business; big business.

There is also an analysis of the South

African economy; looking at the traits

that have allowed it to apply pragmatism,

character and strength at a time when more

experienced trading platforms have buckled.

Hot on its heels, is a look at the future of

South Africa’s rugby team, courtesy of our local

correspondent and, boy, he pulls no punches in

his assessment of how the Boks were managed

during the Rugby World Cup 2011.

In addition, we’ve got an insightful interview

with Hamish Laing, Director of the Concrete

Manufacturers Association and, naturally, he

provides some really solid answers.

Our comprehensive array of company

features from the cream of Africa’s business

community draws inspiration from several

industries this time, including transport, mining,

and construction. There is even a feature on an

airport where wildlife is free to roam around the

departure lounge and an impala greets guests

at check-in. Seriously, folks, what more could

you possibly want?

Enjoy the festive season, wherever you are,

John

Editor

maerskline.com Proudly serving AfricaHow do we serve Africa? With the continent’s best network.

What makes our network the best in West Africa? You do – because it’s your wishes, concerns, ambitions and growth targets that lie behind every decision we make.

We offer the market’s best overall coverage, fastest transit times and most frequent sailings in West Africa. Add to that our

acknowledged leadership in on-time delivery and our attentive, personalised customer service, and you’ve got a world-leading partner who is reliable, flexible and easy to work with.

If there’s anything else you could ask for, let us know. We’re listening to Africa.

West Africa services – New & improved!• 22 custom-built ships, the largest in West Africa• The market’s best network• Unmatched schedule reliability• Personalised service and strong local presence

R1124_Africa_African_Business_Journal_letter_AD2.indd 1 12-07-2011 21:13:32

Page 4: The African Business Journal Dec 2011 - John Pinching

© 2010 KPMG Africa Limited, a Cayman Islands company and and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in South Africa. mc6332

An extraordinary firm, with extraordinary people, on an extraordinary continent.Africa is complex. It is multi-cultural, multi-lingual, geographically vast and steeped in political history. At the same time, the modern business world is increasingly less interested in Africa’s past and primarily interested in working in a unified, seamless context.

KPMG’s organisational structure allows us to manage our operations in a way that makes the most sense in terms of the efficiency and effectiveness of our operations. Our business model, common tools and methodologies, as well as shared values allow us to work with our clients seamlessly across borders.

kpmg.com

Page 5: The African Business Journal Dec 2011 - John Pinching

John Pinching | Editor | [email protected]

Ben Watts | Staff Writer | [email protected]

Laura Hedges | Editorial Assistant | [email protected]

Vladimir Lukic | Creative Director | [email protected]

Chris Moore | Sr. Advertising Designer | [email protected]

Margaret Oldham | Sr. Graphic Designer | [email protected]

Wincy Law | Sr. Graphic Designer | [email protected]

Tanya George | Advertising Designer | [email protected]

Marc Mauricio | IT/Production Support | [email protected]

Natalie Edney | Head of Sales | [email protected]

Khayyam Darr | Research Director | [email protected]

Andrew Miskin | Research Director | [email protected]

Brett Haigh | Research Director | [email protected]

Justin Lejuene | Research Director | [email protected]

Hugh Braithwaite | Research Director | [email protected]

Dee Nazer | Research Director | [email protected]

Michael Alexander-Jones | President | [email protected]

Linda Neal | Chief Executive Officer | [email protected]

Naveed Yusuf | Chief Information Officer | [email protected]

Gemma Parkins | Executive Assistant | [email protected]

Heather MacPherson | General Accountant | [email protected]

Simon Curran | Vice-President/Publisher | [email protected]

South africa office

23 Wellington road

Parktown, 2193

Johannesburg

uK office

2 Sheen road

richmond

Surrey uK TW9 1ae

GEoRGE MEDIA InC.

TABJ Team

Page 6: The African Business Journal Dec 2011 - John Pinching

Table of cOnTenTs december 2011 | Volume 2 | ISSue 12

040Business

sPOrTs rePOrT

AViATiOn

TrAnsPOrTATiOn

securiTY

refriGerATiOn

cOncreTe mAnufAcTurers AssOciATiOn concrete conversation 010

muse news coming out of africa 020

GADDAfi is DeAD—how it came about really doesn’t matter 028

ZAmBiA united nation 040

sTrAnGe currencies 048

BOk to the future 054

kruGer mPumAlAnGA inTernATiOnAl AirPOrT Pretty fly 058

HYunDAi AuTOmOTiVe Gear change 066

fATs the way to do it 080

G4s Stars of ccTV 086

sTAYcOlD inTernATiOnAl The king of cool 094

Page 7: The African Business Journal Dec 2011 - John Pinching

028066

Page 8: The African Business Journal Dec 2011 - John Pinching

Table of cOnTenTs december 2011 | Volume 2 | ISSue 12

PrOPerTY

PAVinG

cOnsTrucTiOn

mininG

sPOrTs GeAr

l.A. sTAAl The steel sovereign 106

sTefAnuTTi sTOcks HOlDinGs building bridges 112

c.e.l. PAVinG PrODucTs Where the streets are paved with gold 118

OJ cOnsTrucTiOn new kids on the block 124

Jolly good sports: TfG sPOrTs 134

eVrAZ HiGHVelD sTeel & VAnADium lTD. is a truly responsible South african steel player 146

DesmOnD equiPmenT dezzi-nated driver 156

sA lime & GYPsum The lime of the century 166

Page 9: The African Business Journal Dec 2011 - John Pinching

112166

Page 10: The African Business Journal Dec 2011 - John Pinching

cOncreTe mAnufAcTurers

AssOciATiOnconcrete conversation

010

Page 11: The African Business Journal Dec 2011 - John Pinching

cOncreTe mAnufAcTurers

AssOciATiOnconcrete conversation

010

Business

Page 12: The African Business Journal Dec 2011 - John Pinching

12 BUSINESS � concrete manufacturers association

Page 13: The African Business Journal Dec 2011 - John Pinching

13DECEMBER 2011 � The African Business Journal

next year South africa’s concrete manufacturers association (cma) celebrates its 40th anniversary. TabJ got in touch with cma director hamish laing to speak about the trade association’s role in promoting its industry and find out how it has taken on the challenges it has been forced to confront during the current global financial turmoil.

How did the CMA come into existence and what is its role?The association was set up 39 years ago when the whole concept of mak-

ing masonry bricks and blocks out of concrete first came to South Africa.

It was founded by manufacturers to develop the standards and the

technical detailing for concrete products, and is today responsible for set-

ting industry guidelines.

We are made up of six divisions, which run their own affairs, but if they

decide to carry out research and development project then we would assist

them in commissioning consultants.

It used to be a called the Concrete Masonry Association, but it has

evolved over the years to include concrete pipes, roof tiles, floor slabs, pav-

ing and concrete retaining wall blocks.

Page 14: The African Business Journal Dec 2011 - John Pinching

14 BUSINESS � concrete manufacturers association

What are the benefits of being a CMA member?We are seen as an authority and we do

revisions of standards on a regular basis,

which are approved by an independent entity.

Therefore, one of the key advantages of

being a member of the association is that

you can join your local division technical sub-

committee and play some role in influencing

the standards.

We also do a lot of marketing on behalf of

our members and promote our members as

trusted technical leaders. Someone looking for

a concrete-related product is able to go onto

our website to find their nearest member and

buy from them.

Do you support the cement sector through educational initiatives? We work to encourage younger engineers and

students to come and find out more about concrete

and often hold seminars that offer background in-

formation and updates on technical developments.

We also spend time with education establish-

ments so that we can catch young engineers as

early as possible in their careers and we produce

technical publications to assist suppliers and influ-

encers to specify and use our products properly.

Are you working with any national associations from neighbouring countries?Unfortunately not, but we do have some

Page 15: The African Business Journal Dec 2011 - John Pinching

15DECEMBER 2011 � The African Business Journal

members from neighbouring countries who

wanted to be associated with us because there

is no national association in Zimbabwean,

Botswana or Mozambique for example.

Some of these companies like to be able to

come to our meetings and stay abreast with the

technological changes and trends taking place

within the industry.

How did last decade’s property development boom affect the industry in South Africa? While I wasn’t with the association at the time,

I was with a commercial company and saw how

prices accelerated beyond inflation.

That was the old supply and demand

scenario, which has led to raw materials

— especially the selling price of concrete

products — to accelerate beyond inflation.

I do, however, predict a period of growth in

the retrofitting construction sector, which would

benefit the cement industry, because a lot of ce-

ment goes into these types of projects.

How did the global downturn affect the industry and the CMA’s standing? The first bubble to burst was the residential

bubble and that bubble burst very quickly for

those involved in residential construction, which

includes a lot of masonry and roof tiles firms.

Many of our members were, however,

involved in infrastructure projects for last year’s

Page 16: The African Business Journal Dec 2011 - John Pinching

16 BUSINESS � concrete manufacturers association

World Cup, and some parts of the industry that

were not solely focused on the residential side

of things enjoyed a honeymoon period, and

following the meltdown continued to grow.

South Africa remains quite strong when it

comes to the concrete sector and, despite some

of our members complaining, if you actually

look at the production averages we had some

huge years that were abnormal; if you take

them out of the equation then we are actually

not doing too badly.

A few of our members invested in extra

production capacity during the good times and

now they’re looking a little bit silly with their

huge machines, but without receiving the orders

required to ensure they are being used.

But we have only lost one member in the

last two years and we gained one from Zimba-

bwe, so there was very little attrition, which was

quite surprising.

Surely concrete manufacturers are benefitting from the resource boom currently taking place across Southern Africa? My personal feeling is that South Africa is badly

positioned to make use of the boom further

north; because of the logistics it’s a tough mar-

ket to crack.

But even though we’ve had a downturn, ce-

ment sales figures have stopped dropping and

have equalised with a slight increase in the past

Page 17: The African Business Journal Dec 2011 - John Pinching

17DECEMBER 2011 � The African Business Journal

three months. Before that they had been consis-

tently dropping for three years.

We’re probably looking more at of an L-

shaped rise rather than a V-shaped rise, so it’s

going to be a slow increase.

Is the industry attempting to improve its environmental impact and lower the notoriously high amount of CO2 it produces?Some of our members are constantly looking at

reducing their carbon dioxide emissions and with

our partners at the Cement and Concrete Insti-

tute we are pushing sustainability initiatives.

Cement is the second most used product in

the world, second only to water, so it produces a

lot of carbon dioxide; but if you dilute it with ag-

gregate it can actually be relatively green.

We are encouraging our members to use as

much recycled concrete as possible, and one of

our members in Cape Town uses up to 80 per

cent of recycled material in his process.

In the old days we’d knock down a build-

ing and dump it, but these days it is processed

through mobile crushers and often sent to peo-

ple like this member who will use the material

in block making, or for road material, so it’s not

being wasted. TAB

www.cmA.OrG.ZA

Page 18: The African Business Journal Dec 2011 - John Pinching

18 BUSINESS � concrete manufacturers association

Page 19: The African Business Journal Dec 2011 - John Pinching

19DECEMBER 2011 � The African Business Journal

ABOuT… HAmisH lAinG

Hamish Laing moved to South Africa

from the UK in 1982 as a qualified

civil engineer and took up a role

with the Department of Water

working in concrete dam design.

After two years he moved into the

private sector and so began what he

describes as “a 20-year love-affair”

with concrete.

Before joining the CMA in

2010, Laing had worked on the

production and technical side of

the concrete industry, as well as in

sales and marketing, and product

development positions for cement

companies and ready-mix concrete

companies.

“My background allows me to pick

things up very quickly and I also

have experience in marketing and

one of the main objectives of the

CMA is to market its members’

products,” he says.

Page 20: The African Business Journal Dec 2011 - John Pinching

20 SECTION � Title20 NEWS IN REVIEW

muse news coming out of africa

everyone will jump on the train and it will become

part of the telecommunications landscape.”

neTHerlAnDs AnD AfricA in fArminG AlleGiAnce

Leader of the Netherlands-African Business Coun-

cil—Bob Van Der Bilj—has said that it may establish

an agricultural institution, consisting of demonstra-

tion farms, in an attempt to support small scale

farmers.

A business seminar for Copperbelt companies

was held in Kitwe to discuss the possibility of open-

ing the facility in Zambia because its relationship

with the Netherlands would allow it to become the

largest exporter of agriculture produce in Africa.

Van Der Bijl’s main objective was to find SME

(Small and Medium Entrepreneurs) partners and

he said: “Each of the Dutch SMEs has its own

area of interest, but what we want to do is estab-

lish relations between the Dutch and Zambian

SMEs and then they can begin to look at their

area of interest.”

These areas of interest range from cocoa-

growers and brick-makers, to infrastructure and

the mining industry.

AfricAn 4G-fOrce

Africa could have its first 4G network by next

year as wireless phone operators prepare to

meet the growing data demand from smart-

phone users.

Mobile phone companies around the globe

are moving towards long-term evolutionary (LTE)

networks that support high-speed wireless

services, as smart-phones and tablet comput-

ers become the increasingly popular option for

surfing the web.

Lars Linden—head of Ericsson in sub-Saha-

ran Africa—said: “You will see the first networks

in 2012. It will surprise me if the big dragons

such as MTN, Vodacom and Airtel don’t con-

tinue developing.”

4G is expected to reduce network congestion

and provide a faster connection for the fast-emerg-

ing market of tablet computers and smart-phones.

MTN, Vodacom and Safaricom—big names in

African telecom—are already running trials of the

4G technology in South Africa and Kenya.

It has become an interesting race to see who

is first in Africa,” Linden said, “but sooner or later

Page 21: The African Business Journal Dec 2011 - John Pinching

21OCTOBER 2011 � The African Business Journal 21SEPTEMBER 2011 � The African Business Journal

news coming out of africa

Bill Osborn—Copperbelt Show Society Chair-

person—said there were many investment oppor-

tunities in Zambia, and the government and its

partners were keen to invest in the construction

of Multi Facility Economic Zones (MFEZ).

BurGer kinG

Fast food chain McDonald’s Corporation has an-

nounced that its global comparable sales increased

by 5.5 per cent in October this year. The company

was only expecting a 4.1 per cent growth.

The metric used to gage the corporation’s

financial health compares store sales, but

excludes recently opened or closed stores.

In the US, comparable sales figures exceed-

ed expectations of 3.2, and instead rose to 5.2

per cent, in part thanks to its Monopoly game

promotion offered to customers who purchase

Big Mac meals, Chicken McNuggets and other

selected products.

McDonald’s largest market, Europe, grew

4.8 per cent in sales figures after a 3.4 per cent

forecast by analysts, largely driven by high perfor-

mance in France, Russia and the UK.

With more than 33,000 locations worldwide, Mc-

Donald’s serves 64 million people in 114 countries.

PHOTO CREDIT: TUPUNGATO / SHUTTERSTOCK.COM

Page 22: The African Business Journal Dec 2011 - John Pinching

22 SECTION � Title22 NEWS IN REVIEW

muse news coming out of africa

nAmiBiAn TrAVel neeDs

Monique Swart—founder of the African

Business Travel Association (Abta)—has said

that Namibia’s business travel industry is, “very

immature, but by no means clueless.”

An alleged mis-quoting in The Namibian

newspaper cited her as saying that Namibia’s

travel buying is, “like a third world country and

100 per cent clueless”.

In response to these allegations, Swart said:

“Having travelled to Namibia for our launch event

in July this year and having engaged with many of

the travel industry professionals in the region, we

are of the opinion that for the most part, the mar-

ket is very immature, but by no means clueless.”

She added that although there are a number

of unprincipled travel agents in the region

abusing the buyers’ lack of knowledge and acting

unprofessionally, Abta does not believe that the

region as a whole is corrupt.

According to Swart, buyers in the region are

not practical enough when it comes to looking at

what they are actually paying for and she urges

them to think carefully about potential hidden

costs concealed within a ticket price.

cHrisTmAs sA-VinGs THis YeAr

A recent survey by Deloitte has shown that 62

per cent of local shoppers believe the South Afri-

can economy to be in recession, 69 per cent are

Page 23: The African Business Journal Dec 2011 - John Pinching

23OCTOBER 2011 � The African Business Journal 23SEPTEMBER 2011 � The African Business Journal

news coming out of africa

aiming to spend less money on Christmas pres-

ents this year, 78 per cent said they would buy

goods on sale and 67 per cent would consider

buying house-branded products.

Deloitte surveyed a sample of 18,354

shoppers and further results showed that 63

per cent would focus more of their Christmas

spending budget on food groceries this year,

rather than gifts, and 38 per cent would use

loyalty points earned throughout the year to

purchase goods.

Despite the caution implied by the survey,

South Africans were found to be generally more

optimistic about the 2012 financial situation

than their European equivalents.

Kay Walsh—senior economist at Deliotte—

said: “Although we are affected by the global

recession, our positioning within Africa and

the emerging markets of countries has cush-

ioned us from some of the effect of the global

meltdown. This may be responsible for some of

the optimism being displayed towards 2012 by

South Africans.”

Retail figures are also suggestive of some resil-

ience, with emerging middle-class shoppers playing

a key part in the expected recovery, Walsh added.

cHArles AnD cAmillA cOncluDe wHisTle-sTOP

sOuTH AfricAn ADVenTure

Prince Charles and the Duchess of Cornwall have

finished a successful five-day tour of South Africa

and are now heading for Tanzania.

The royal couple were greeted warmly by

the South African public and government of-

ficials. David Cordingley—director-general of the

British Council—said: “The positive reception

they received from the South African public

helped cement the relationship and create a

positive atmosphere.”

The tour took their highnesses to Johannes-

burg, Durban and Cape Town where they partici-

pated in meet and greet activities with members

of the public, attended exhibitions and met chil-

dren involved in the Nelson Mandela Children’s

Fund project.

Prince Charles attended a garden party

hosted by Dame Lady Nicola Brewer in Hyde

Park, Johannesburg, and was presented with a

Page 24: The African Business Journal Dec 2011 - John Pinching

24 SECTION � Title24 NEWS IN REVIEW

muse news coming out of africa

photograph album of King George VI and Queen

Elizabeth’s visit to South Africa in 1947.

The couple also experienced a traditional

Zulu dance before lunching with King Zwelithini

and being treated to a tour of the Phinda Game

reserve.

“Their royal highnesses were able to raise

awareness of issues which are close to their

hearts,” Cordingley said. “These included trade

between two countries, sustainable develop-

ment, conservation, youth opportunities and

unemployment.”

rOllercOAsTer riDe fOr AfricAn Business

cOnfiDence

The latest African Business Confidence Index

(ABCI), spanning 30 countries across the conti-

nent, has shown an expansion in the non-man-

ufacturing sector, but the exact opposite in the

manufacturing sector.

The ABCI showed an increase of 3.6 per cent

in the non-manufacturing sector, bringing its

latest total up to 56.9 per cent, but the manu-

facturing index showed a decline of 1.6 per cent,

leaving its latest total at 49.7. A level of 50 per

Page 25: The African Business Journal Dec 2011 - John Pinching

25OCTOBER 2011 � The African Business Journal 25SEPTEMBER 2011 � The African Business Journal

news coming out of africa

cent and above suggests a notable expansion.

The index measures business confidence

across the continent through the examination of

indicators such as production, employment, sup-

plier deliveries, customer inventories, new export

order and imports for the sector.

Marketing manager of Wilkins Engineer-

ing in Ghana—Agyenim Boateng—said: “Africa is

gradually becoming the hub of a certain business

trend championed by the Asian market. This has

accounted for many imports into the country,

thereby increasing stocks and turnaround times.”

DiAmOnDs Aren’T fOreVer

In response to the decreasing confidence in manu-

facturing, Elaine Dugmore—founder of Kalahari

Kanvas in Botswana—said: “With regard to exports,

we feel that the global uncertainty is generally caus-

ing customers to think twice before ordering.”

The Oppenheimer family is selling its 40 per

cent stake of De Beers—the diamond business it

has been connected with for the last century—to

Anglo American for $5.1 billion.

Nicky Oppenheimer denied claims that

the matter had been planned for a long while.

Page 26: The African Business Journal Dec 2011 - John Pinching

26 SECTION � Title26 NEWS IN REVIEW

muse news coming out of africa

“This has been over the last three to four

weeks,” he stated, “There were absolutely no

talks or any suggestions that it would happen

before this.”

Analysts suggested the Oppenheimers had

waited for the diamond market to recover before

selling their stake, but Oppenheimer responded to

any queries regarding the timing of the sale with:

“Why now? Because John Parker (Anglo American

Chairman) made me an offer now.”

Oppenheimer explained his surprise at Park-

er’s offer and said that it was a difficult and emo-

tional family decision to make and that all reasons

were fully explored. “In the end all members of the

family took the unanimous view that this was the

right thing to do,” he added.

Since his grandfather founded the business

in South Africa in 1902, Oppenheimer has an

attachment to the country and although has no

specific plans yet, is likely to focus his energy and

profits back into the South African economy.

“I don’t intend to fade away into the wood-

work,” he added, “My golf is too bad to make it a

regular occurrence.”

GHAnA GOes fOr GOlD

Prince Kofi Amoabeng, CEO of UT Bank, Edward

Effah, CEO of Fidelity Bank and Zoomlion’s

CEO, Joseph Agyepong, all received top awards

at the West African Ernst and Young Entrepre-

neurs awards.

Held in Nigeria, the competition judged can-

didates in areas such as innovation, strategic

thinking and direction, for their companies. It was

the first time in 25 years of the event that Ghana

participated.

Effah was delighted to be recognised outside

the Ghana border and said: “It is further testimony

we’re on track to achieve our vision of creating

a world class Ghanaian bank, run and owned by

Ghanaians, while also giving further encourage-

ment to fellow Ghanaian entrepreneurs.”

Agyepong stressed his belief that Ghana is

rich with experience and talent. “The country must

recognise people of this calibre and see how best

we can all contribute to the development of Gha-

na,” he commented.

Country Leader of Ernst and Young—Ferdinand

Gunn—said: “They (the competitors) have learnt a

Page 27: The African Business Journal Dec 2011 - John Pinching

27OCTOBER 2011 � The African Business Journal 27SEPTEMBER 2011 � The African Business Journal

news coming out of africa

lot by going through a nomination process, being

checked to make sure they met criteria, shortlist-

ed, interviewed and further scrutiny.”

One of the two representatives for West Af-

rica at the global Ernst and Young Entrepreneurs

awards in Monte Carlo, USA, next year, will be

Aigboje Aig-Imoukhuede—CEO of Access Bank.

minD THe GAP

Professor Barney Jordaan—director of the Africa

Centre for Dispute Settlement, at the University of

Stellenbosch Business School (USB)—has high-

lighted that the wage disparity between top execu-

tives and entry level employees is considerably

higher than other developing and even first-world

countries.

The PricewaterhouseCoopers (PmC) Executive

Directors Remuneration Practices report outlined

the matter earlier this year, and showed the con-

tinually growing wage gap as one of the largest in

the world.

Due to employee dissatisfaction with the

disparity, Jordaan said: “Employers are urged to

review existing structures, as well as investigate

the most appropriate method of remuneration for

their company structure.”

The report highlighted a 23.3 per cent

increase in pay for executive directors on the

stock exchange, and the R8.25 million bonus

received by CEO of Woolworths, Ian Moir, on

top of his R5.312 million pay package for the

average year.

Jordaan agrees that the experience and high

levels of responsibility held by chief executives do

entitle them to higher pay, but he emphasised his

belief that such large gaps between wage rates

do not necessarily result in better performance

and productivity.

In order to improve performance and overall

morale, Jordaan believes management and em-

ployee incentives, for workers at all levels, should

be taken into consideration. TAB

Page 28: The African Business Journal Dec 2011 - John Pinching

28 COVER FEATURE � Gaddafi is dead—how it came about really doesn’t matter

John Pinching’s Stream of Consciousness:

Gaddafi is dead-- how it came about really doesn’t matter

Page 29: The African Business Journal Dec 2011 - John Pinching

29DECEMBER 2011 � The African Business Journal

Gaddafi is dead-- how it came about really doesn’t matter

Page 30: The African Business Journal Dec 2011 - John Pinching

“He is the pivotal figure in a

countdown to World War III”Hunter S. Thompson, 1986

Page 31: The African Business Journal Dec 2011 - John Pinching

CONFRONTATIONS BETWEEN THE REBELS AND AL-GADDAFI IN AL BAYDA | PHOTO SOURCE: WIKIMEDIA COMMONS

Page 32: The African Business Journal Dec 2011 - John Pinching

32 COVER FEATURE � Gaddafi is dead—how it came about really doesn’t matter

A FRENCH NAVY AS365 F DAUPHIN RESCUE HELICOPTER FROM FRENCH AIRCRAFT CARRIER CHARLES DE GAULLE (R91) TEST LANDS ABOARD THE AMPHIBIOUS COMMAND SHIP USS MOUNT WHITNEY (LCC/JCC 20). CHARLES DE GAULLE IS OPERATING IN THE MEDITERRANEAN SEA SUPPORTING THE COALITION LED OPERATIONS IN RESPONSE TO THE CRISIS IN LIBYA. (U.S. NAVY PHOTO BY MASS COMMUNICATION SPECIALIST 1ST CLASS GARY KEEN/RELEASED)

Page 33: The African Business Journal Dec 2011 - John Pinching

33DECEMBER 2011 � The African Business Journal

It was, of course, quite appropriate that col. Gaddafi or moammar Khadafy or el-Qaddafi—or whatever his bloody name actually was—spent his last few minutes cowering in a filthy tube. Quite literally, a rat up a drainpipe.

Page 34: The African Business Journal Dec 2011 - John Pinching

34 COVER FEATURE � Gaddafi is dead—how it came about really doesn’t matter

Despite all the self-awarded military honours,

which decorating his regalia in those absurd pub-

licity photos, when the game was up, the cowardly

Colonel could only resort to grovelling. Shortly

afterwards his last day on planet earth appeared

on Gaddafi’s Wikipedia biography, and a communal

sigh of relief blew through the North African desert.

In death he was just as revolting as he had

been in life. There was something inevitably maca-

bre, unsettling and haunting about his final throes—

something that went beyond that of a regular hu-

man end. As his remains were dragged through the

streets, the dark cavities that made up his facial

orifices still seemed to emit traces of the life that

had just expired; vapours of something akin to pure

evil. It was horrible—there’s no denying it.

It was a measure of this despicable man’s

depths that, even when all life had exited, he

could still cast a terrifying death stare to the world.

Ultimately, however, history will record the termi-

nation of his rein, at the hands of the people he

betrayed for nearly half a century, as the most

important detail.

Digital death

The instantaneously available nature of Gaddafi’s

humiliation was also a reminder that in this age of

digital technology and mass media, we are imme-

diately transported to news as it breaks. We, the

watching world, were given the chance to witness a

rotten tyrant brought to his knees through a form of

instant justice and for many—including this author—

it was taken. I can’t now ‘unsee’ the footage and, I

must admit, there have been a couple of mornings

when the rubbery and repellent face of ‘the colonel’

has revisited me, but I also understand on these

days of reflection that I did not view his death as

someone might witness a snuff movie. There was

no perverse or particularly gratifying pleasure.

Barbaric though the footage was, we need to

see beyond the graphic violence and concentrate

on what it symbolises—the end of a drawn out and

grizzly chapter. The pleasure was in seeing the

uprising of a people and their chance for freedom;

their opportunity to reach out and touch a future

untainted by an abhorrent fiend.

The Libyan people, in truth, had earned their

right to do whatever they wanted with Gaddafi.

Page 35: The African Business Journal Dec 2011 - John Pinching

35DECEMBER 2011 � The African Business Journal

“As his remains were dragged through the streets,

the dark cavities that made up his facial orifices

still seemed to emit traces of the life that had just

expired; vapours of something akin to pure evil.

It was horrible--there’s no denying it”

MARK III PHOTONICS / SHUTTERSTOCK.COM

Page 36: The African Business Journal Dec 2011 - John Pinching

36 COVER FEATURE � Gaddafi is dead—how it came about really doesn’t matter

This was not the time for drawn-out court cases.

It only would have given him more time to polish

his pantomime image—the alter ego which has, all

too often, detracted from the foul stench of his vile

regime.

After 42 years of hell the vast majority of

Libyans wanted their new chapter to start im-

mediately. Not in three years, or even three days.

They wanted their nemesis to be destroyed in

order to start anew. It is not for governments of

other countries to decide whether justice had

been done.

The people were dancing in the streets of

Libya and that told you all you needed to know

about justice. The dawn of a new era had cast

its light across Sirte and Tripoli and Benghazi

and, indeed, over every man, woman and child

that has ever felt oppressed by Gaddafi and him

motley crew of odd-balls and psychopaths.

In the welter of moronic outfits, bizarre

womenfolk and mentalists sons, a cretinous,

terrorist is gone and the world should be might-

ily relieved.

The revolution that sparked a revolutionFreeing the world from villains is difficult at the

best of times, but when those parasites are in

lofty positions the task becomes almost insur-

mountable—but never impossible.

Overhauling a regime requires organisa-

tion, passion, courage and, not to mention,

people—thousands of them. This summer the

first people to reach the end of their collective

tethers and—in many ways the real revolutionar-

ies of this story—were the Tunisians. It was their

determination which engendered the very hope

that first emerged in Egypt and then, critically,

in a suburb of North Africa called Libya.

What now for Libya

For Libyans, not just in Libya, but all over the

world, this represents their inauguration into the

free world. Once the party poppers have been de-

ployed and the last of the fondant fancies have

been consumed, it will be a time for slow reflec-

tion and a perusal of the possibilities connected

with being a liberated country.

In terms of becoming a trading platform and a

credible economic force, Libya has tremendous po-

tential. It is still an oil-rich haven and this remains a

great foundation on which to build other global en-

terprises—the sort of opportunities that have been

denied to the people of Libya for so long.

Rebuilding the carnage of international

business relationships, destroyed by the regime,

Page 37: The African Business Journal Dec 2011 - John Pinching

37DECEMBER 2011 � The African Business Journal

THE DICTATOMETER

NASTY

WRETCHED

HORRIFIC

EVIL

EVIL

BEYOND

BELIEF

THE DEVIL

INCARNATE

MOA

MM

AR G

ADDA

FI

ADOL

F H

ITLE

R

BEN

ITO

MUS

SOLI

NI

POL

POT

IDI A

MIN

SAD

DAM

HUS

SEIN

Page 38: The African Business Journal Dec 2011 - John Pinching

38 COVER FEATURE � Gaddafi is dead—how it came about really doesn’t matter

I have to say the reintroduced ‘Kingdom of Libya’ flag is an

absolute classic and, almost, worth waiting 42 years for.

The stylish combination of red, black and green, with moon

and star detailing, give it a grandiose aesthetic, which is at

once memorable and-- most importantly-- optimistic.

Page 39: The African Business Journal Dec 2011 - John Pinching

39DECEMBER 2011 � The African Business Journal

will undoubtedly take time. Creating trust is

all part of the brave new world in which Libya

and its new government now operate. There

have already been encouraging signs, however,

that former foes are keen to get round

the table, play cards and eventually strike

deals. America, China, the UK and countries

throughout mainland Europe have all stated

that their intention to help galvanise the trade

links with Libya.

With so much optimism crystallising around the

new nation, soon Gaddafi will become just another

Halloween mask. A pitiful figure to poke fun at. In

the meantime Libya will start to see business, op-

portunity and freedom as a way of life. TAB

Of all the people to have foolishly accepted Gaddafi’s hospitality, it is without doubt the image of

Tony Blair’s warm, vomit-inducing handshake that rankles most resonantly with the British public. No

amount of oil or indeed ‘forgiveness’ can condone such a disgraceful lack of judgement. Obsessed by

legacy, permatanned, obscenely greedy and with an inordinate amount of blood lacing his hands—no-

body has met that damning assessment so resoundingly since one Richard Milhous Nixon.

There’s something even more insidious about Blair, however—maybe it’s the daft wife or that

he was, in many ways, responsible for the Dianafication (yes even more than old Diana herself) of

British society. Was it not he that tore dignity straight out of the heartland of dignified conduct?

Hey, David Frost, isn’t it about time you dusted off the clipboard and gave our inglorious ex-

leader a good grilling? Think of the movie, ten years down the line! You would be played, of course,

by Michael Sheen and Tony Blair’s shoes will, naturally, be occupied by…er…Michael Sheen.

The Blair

witch

project

Page 40: The African Business Journal Dec 2011 - John Pinching

ZAmBiAunited nation040

Page 41: The African Business Journal Dec 2011 - John Pinching

ZAmBiAunited nation

Business

Page 42: The African Business Journal Dec 2011 - John Pinching

42 BUSINESS � Zambia

With a new government and a fresh sense of optimism, Zambia’s destiny is, at long last, in its own hands

unTil recenTlY iT was difficult to see how Zam-

bia would be able to fully emerge from its trou-

bled past. Now with a new style of leadership at

the helm, there is every reason for optimism, as

the country reenergises its trading platforms and

prepares for a fruitful future.

Sculpting a brighter futureThe inspiringly-named Patriotic Front Govern-

ment (PF) has swept into office with a refreshing

flourish; officially snatching the reins of power

on September 23. Its victory had arrived three

days before, with a landslide victory in the gen-

eral elections. During the successful campaign it

vowed to ensure that taxes were proportionate to

the profits made by mining companies.

Subsequently, the intrepid new Zambian

Government has announced that it would consult

with mining firms before changing the tax regime.

It has also insisted that no changes will be made

without a thorough analysis of the current cli-

mate faced by the industry.

The country’s newly elected president, Mi-

chael Sata, insisted: “We cannot destroy compa-

nies that are giving the country money.”

He added that the PF had some useful

Page 43: The African Business Journal Dec 2011 - John Pinching

43DECEMBER 2011 � The African Business Journal

statistics and these would be tabled before the

mining companies and used to come up with a

taxation that suits everyone concerned.

Meanwhile, the largest labour union in the

Zambian mining industry—The Mineworkers

Union of Zambia (MUZ)—has approved the rein-

troduction of a windfall tax. It said that Zambia

was not benefiting from increased prices of cop-

per, under existing legislation.

The union, which has a membership of more

than 15,000—stated that Zambia has already lost

millions through unpaid taxes by mining compa-

nies. MUZ president Boniface Mukuka said the

suggestion by the new government, to reintroduce

the windfall tax for the mining companies, was a

welcome move and should be supported by all

Zambians—as a point of national pride and ethics.

He also recommended that the new minister

of mines and minerals development should take

a fresh look at the employment of casual labour

in the mining sector.

“Employment of labour on casual terms is

not appropriate, especially as workers have been

fired at will, and without benefits,” he reflected.

Currently mining companies in Zambia pay

a three per cent mineral royalty tax, 30 per cent

corporate tax and 15 per cent variable tax.

In his inaugural speech (see pull out box),

President Michael Sata added that foreign

investment was still vitally important to Zambia,

as it not only created jobs but galvanised the

economic empowerment of Zambians.

“We will continue to work in fair partnership

with the investors already in the country, while

also welcoming new ones,” he said. “It is our

hope that investors will abide by the labour laws

of the country ensuring that Zambians are not

disadvantaged.”

Ten commandmentsMichael Sata, also represents the first elected

Catholic head of state—and devout believer—in

the country’s history. Consequently he has stated

that his government would religiously follow the

tenets of the 10 Biblical Commandments.

“This government will be governed uncondi-

tionally by the ten Commandments,” he revealed.

“Thou shall not steal, do unto others as you

would like them to do unto you,” Sata told parish-

ioners at a church in Lusaka’s upscale Rhodes

Park district.

“For the first time this country has a Catholic

president and our government will support the

church,” Sata said, reminding those present that

the nation was predominantly Catholic.

He has also started his tenure with a pledge to

crack down on the rampant corruption that turned

voters away from his predecessor, Rupiah Banda.

Page 44: The African Business Journal Dec 2011 - John Pinching

44 BUSINESS � Zambia

Banda had campaigned unsuccessfully on

the strength of Zambia’s economy—which grew

7.6 percent last year—and pointed to new hos-

pitals, schools, roads and electricity projects as

proof of his success.

Sata, however, took 43 per cent of the vote,

leaving Banda with only 36 percent. The new

leader candidly harnessed the anger of the youth

and the unemployed, promising them a brighter

future under his guidance.

Zambia gained independence from Britain in

1964 and Sata is its fifth president.

Building bridgesAnother of Sata’s early missions is to administer

some much needed relationship repairs. It has

already apologised to Angola for backing the los-

ing party in the country’s 27-year civil war. It is

essential for Zambia to instigate good relations

with its oil rich neighbours.

Angola will also want access to Zambia’s cop-

per resources, and this will act as a useful sweet-

ener as Sata attempts to expunge years of tension.

“As I am talking, our first president, Dr. Ken-

neth Kaunda, is in Angola. I have sent him as

my envoy to go and personally apologise to the

president,” Sata told Angola’s new ambassador

Balbina Malheiros Dias Da Silva.

Angola had accused Zambia of backing the

UNITA movement, which lost the war to the MPLA

party of President Jose Eduardo Dos Santos—a

charge which had previously been refuted.

Zambia relies on semi-refined oil imports

from the Middle East, but has been studying

plans to import crude oil from Angola and set up

a new oil refinery locally.

Sata has also indicated that links to Angola

by road and railway could be possible in the

near future.

Meanwhile, Sata has also been seeking an

apology from another neighbour, Malawi, for the

way he was treated during a visit four years ago.

President Bingu wa Mutharika’s government

arrested Sata when the then opposition politician

travelled to Malawi to visit a former president. He

was wrestled into a car and driven several hundred

kilometres before being dumped at the border and

told never to darken their doorstep again.

As yet, an invitation to reconcile has not

been made.

China in their handsThe wind of change blowing through Zambia has

also strengthened its relationship with China has

been quick to make clear its willingness to form a

partnership that would promote bilateral economic

and trade cooperation between the two countries.

Foreign Ministry spokesman Hong Lei said:

Page 45: The African Business Journal Dec 2011 - John Pinching

45DECEMBER 2011 � The African Business Journal

“China and Zambia share a traditional friendship

and pushing forward cooperation will bring more

tangible benefits for both parties.”

Sata is enthusiastic about a more fruitful

partnership and welcomed Chinese business in-

vestment during a meeting with China’s Ambas-

sador to Zambia Zhou Yuxiao.

“The Chinese government backs capable and

credible companies to carry out investment and

cooperation in Zambia,” Hong added, noting that

China always asks its companies in the African

nation to obey the laws and fulfil corporate social

responsibility.

China has been instrumental in building a

number of infrastructure projects that benefit the

people of Zambia, and its companies have cre-

ated well over 10,000 jobs for locals, by conduct-

ing investment and cooperation on the basis of

equality and mutual benefits.

Somewhat immodestly, Hong claimed that

this has effectively provided an impetus for Zam-

bia’s social and economic development.

In recent years, major Chinese companies in

Zambia have maintained the policy of “not con-

ducting fund withdrawal, production cancellation,

or job cuts,” Hong said. TAB

Page 46: The African Business Journal Dec 2011 - John Pinching

46 BUSINESS � Zambia

Page 47: The African Business Journal Dec 2011 - John Pinching

47DECEMBER 2011 � The African Business Journal

sPeecH TO PArliAmenT

Extract from President Michael Sata’s opening

parliamentary speech

Mr. Speaker,

I am delighted to address this house on the

opening of the first session of the eleventh

national assembly under the Patriotic Front

Government. Allow me to congratulate you,

Mr. Speaker, on your deserved election to

this esteemed position in the house. Let me

also congratulate the deputy speaker and the

deputy chairperson of committees of the whole

house on their election to these important

positions.

In the same vein, I wish to congratulate all the

honourable members of parliament on their

election to this house. I equally congratulate

the nominated members of parliament. The

great task before us now, as members of

this house, is to effectively contribute to the

development of our great nation.

I would like to salute the people of Zambia,

regardless of their political affiliation for

peacefully participating in this year’s elections.

Our people’s spirit demonstrates the well

renowned peaceful character and maturity of

the Zambian people and the respect which we

accord one another as we elect our leaders.

This is as it should be in a democratic country.

The patriotic front government recognises

that putting the country on the path for

sustainable growth will require a well planned

development agenda. Our development

agenda is simple, as it emphasises the need

for the government to promote pro-poor

growth for the vulnerable in our society.

My government, therefore, commits itself

to streamlining the development planning

and finance portfolios. Medium and long

term planning will continue to be the

guiding framework for the country’s national

development, with priority given to key

programmes aimed at poverty reduction and

wealth creation.

Page 48: The African Business Journal Dec 2011 - John Pinching

While the rest of the world wallows in the bog of sustained financial insecurity, South africa’s economy is a different animal altogether.

sTrAnGe currencies048

Page 49: The African Business Journal Dec 2011 - John Pinching

While the rest of the world wallows in the bog of sustained financial insecurity, South africa’s economy is a different animal altogether.

sTrAnGe currencies

Business

Page 50: The African Business Journal Dec 2011 - John Pinching

50 BUSINESS � Strange currencies

wHen YOu sPenD your days, and often nights,

sniffing around the endlessly fascinating busi-

ness landscape of South Africa you realise that,

what makes it tick, and how it reacts, is in a

class all of its own.

South Africa is a burgeoning market, hosting

more global enterprises and international trading

activity than any time in its history. Of course, it is

therefore susceptible to the global factors inherent

within the worldwide economic downturn. There

are, however, several features of South Africa’s

economy which set it apart from other countries.

As a relatively young, enthusiastic and opti-

mistic trading platform its economy tends to ebb

and flow, peak and trough or shake and stir. It

is more of an exciting roller coaster ride as op-

posed to a sustained crawl through the trenches

of financial hardship. When the recession acts,

South Africa reacts. There’s a pliability—some

room to manoeuvre—that other more historically

entrenched economies lack.

There are, inevitably, extremely trying times in

South Africa, but when there is a sharp decline, it

has frequently been followed by an equally abrupt

upturn in the fortune—not only of the economy—

but as recorded by individual companies. This

lends weight to the argument that South Africa’s

street wise businesses have become accustomed

to thinking quickly and acting decisively.

In the brave new environment of a positive

post-apartheid nation companies are typically

less cautious and much more likely to invest,

even in a high-risk situation. It is this kind of

slightly renegade mind-set that has seen com-

panies in South Africa emerge, survive and even

flourish during a situation that, in other conti-

nents, prompted fear, confusion and failure.

“a slightly renegade mind-set has seen companies in South africa emerge, survive and even flourish during a situation that, in other more established continents, prompted fear, confusion and failure.”

Greek tragedyYou only have to look at the situation in parts of

the Eurozone to see what happens when old hab-

its die hard. The plight facing Greece has unfold-

ed before our very eyes on news channels across

the globe, culminating in furious protests from a

Page 51: The African Business Journal Dec 2011 - John Pinching

51DECEMBER 2011 � The African Business Journal

Page 52: The African Business Journal Dec 2011 - John Pinching

52 BUSINESS � Strange currencies

confused and disenfranchised Greek population,

who see no way out of the financial meltdown.

The Greeks can look back proudly at one of

the oldest civilisations in the history of mankind

and an ancient tradition of trading with their own

currency, but the adopting of a single currency

has seen its economy lurch hopelessly, before

over-balancing completely. Its old system was

simply not compatible with the multi-lateral, new-

fangled Euro. Even Pythagoras would struggle to

sort out the current mess.

After ten years of gobbling up the seemingly

endless slip-stream of Euros—seduced by their

apparently inexhaustible supply—the Greek econ-

omy has crashed horribly, with thousands unable

to recover or reimburse what they had already

borrowed, and many more unable to borrow more,

in a desperate attempt to save themselves.

Similar patterns have developed all over Europe

and suddenly all Eurozone members are having

to take collective responsibility for some ominous

black holes—striking at the confidence of not only

businesses but—more worryingly, the banks.

This is where the brio and independence of

South Africa’s economy soars where others floun-

der. Remember, it still less than 20 years since

the birth of the ‘new’ South Africa. There remains

a freshness in its approach and a togetherness

in its spirit. Surely, this is less to do with coinci-

dence and more in tune with a united nation.

“This is where the brio and independence of South africa’s economy soars where others flounder. remember, it still less than 20 years since the birth of the ‘new’ South africa. There remains a freshness in its approach and a togetherness in its spirit.”

SurvivalIn TABJ’s daily communication with South African

companies, in a broad range of industries, includ-

ing property development, mining, healthcare,

food & drink, transport and security, there seems

to be a common denominator that links each and

every one—core optimism.

There is also a tendency among South

African companies to cooperate during crunch

times, preferring to see other businesses as

allies rather than enemies. A mining company

Page 53: The African Business Journal Dec 2011 - John Pinching

53DECEMBER 2011 � The African Business Journal

that can no longer afford to buy new machinery

decides instead to rent equipment and sudden-

ly lucrative contracts are exchanging hands that

suit two or three companies rather than one.

Property development companies, keen to

continue galvanising their country, keep building.

Building their future—quite literally. Its attitude is

not down tools—it’s to pick them up and create

great, visually astonishing but affordable hous-

ing. Black empowerment has also come to the

party in a big way—even in a time of tumult. Peo-

ple from previously disadvantaged backgrounds,

who are now running profitable companies refuse

to let a thing like a massive recession bring a halt

to their business activities.

“black empowerment has also come to the party in a big way—even in this time of tumult. People from previously disadvantaged backgrounds, who are now running profitable companies, refuse to let a side issue like a massive recession bring a halt to their business activities.”

Further afield South African companies—often

encouraged by the government are branching out

to India, China, Japan and America where new

partnerships are stabilising any lingering threat of

a catastrophic downturn.

This ‘never say die attitude’ provides the

heartbeat and the soul of a country that sets

a new standard in courage and discipline. The

healthy attitude appears to be momentum and

movement. South Africa’s economy is still grow-

ing and perhaps that will to reach the summit

has prepared it for an obstacle that the UK, USA

and mainland Europe are still measuring up.

Mandela’s mandate for South Africa in 1994

called for courage, while insisting ‘anything is

possible’. Perhaps now, more than any other

time, South Africa is proving just that. TAB

Page 54: The African Business Journal Dec 2011 - John Pinching

BOk TO THe fuTure054

Page 55: The African Business Journal Dec 2011 - John Pinching

andrew miskin, our man in South africa, peers into the cellar of the recent rugby World cup campaign and emerges with a bottle that—despite being half full—shows great potential, as long as certain people can keep their noses

BOk TO THe fuTure

sPOrTs rePOrT

Page 56: The African Business Journal Dec 2011 - John Pinching

56 SPORTS REPORT � bok to the future

out of it.AlTHOuGH refereeinG sTAnDArDs dominated

the headlines, justice prevailed, as the host na-

tion troubled the trophy engravers for the first

time in 24 long years.

Having said that, there were glimpses from

the Springboks throughout the World Cup—

and especially in the disappointing semi-final

against the Wallabies—that on their day, they

are still a fear-inspiring proposition; dominating

the first phases and a demonstrating a typically

brutal approach to the opposition attack.

Although it may be boring to many, the

Springboks play proper, traditional rugby, and to

the purist that has its own allure.

Looking forward though, we may well have

seen the blossoming of a more expansive game,

with the Wallabies stretched on several occa-

sions during that strangely one-sided quarter

final in Wellington; which the dominant side lost.

Were it not for some average finishing, this

would have been a 20 point victory, but the

Boks will argue (and rightly so) that the founda-

tion was laid at the scrums and lineouts, where

they were majestic. It may well be that a little

more time in the saddle—playing through the

phases, while kicking far less—will be all that

is required for South Africa to dominate, once

again, at international level.

Greener on the other sideThe passion and talent at junior level is phenom-

enal, and it is only a matter of time before the

correct structures—with less political meddling at

senior level—provide the team with the freedom

fulfil their potential.

The disgraced coach—P Divvy, as this strange

little man is disparagingly known—has apparently

nominated himself for a further role in SA Rugby,

quoting ‘unfinished business’. This is a truly

undignified act from a man with an ego inversely

proportional to his shoe size.

He needs to step aside for those who have

experience at the highest level, and will be able

to lead the team without irrepressible figures

such as Smit and Matfield, who effectively

Page 57: The African Business Journal Dec 2011 - John Pinching

57DECEMBER 2011 � The African Business Journal

coached the team during De Villiers’s tenure.

There are quality coaches in South Africa,

and names such as Brendan Venter, Heyneke

Meyer and Rassie Erasmus come to mind as

worthy candidates, but should one of these

gentlemen be appointed, they would have an

uphill battle against political interference, from

those with no clue about the game. None of

these ‘old school’ candidates would relish such

a complicated task.

Getting a coach to South AfricaJake White’s tenure was probably most notable

for his clever use of the press, and hard-nosed

diplomacy toward the powers that be in SA Rugby.

It remains to be seen whether similarly unpopular

choices for the head coach role will survive the

same pressures. Indeed, would they even want it,

especially when you consider the freedom pro-

vided in well-paid roles throughout Europe.

With this considered—and I’m aware that it

is a sensitive subject—why does SA Rugby not

look outside the homeland to fill this hugely

pressurised role? Robbie Deans has stepped up

to his task with the Wallabies admirably, as has

John Kirwan with Japan, while John Mitchell has

also got the Lions performing brilliantly.

Admittedly, all these coaches are Kiwis, but

they are excellent at what they do, and they

may well manage the political issues with less

emotion than a Heyneke Meyer or especially

the outspoken Brendan Venter. He came short

with the press in England in hilarious fashion

recently, and one would imagine that his but-

tons would be pushed even harder, should he

take up a role with SA Rugby.

Burger kingIn terms of players, the Boks are truly blessed,

and the next few years should produce a golden

harvest. There is little disputing that the machine

with a heart, Schalk Burger, is the man that

should be given the captaincy, as he represents

all that is good about the previous Bok team, and

all that is possible with the new incarnation.

A few words of personal advice to the new

Bok regime, if I may be so bold. Please put Pat

Lambie at 10, and I guarantee, you will never

look back—we already have the likes of Gio Aplon

and Frans Steyn to play at 15. He is a natural, at-

tacking No. 10. Put him there, give him security,

and watch him dictate the new style of rugby that

the Boks are inevitably moving towards.

Sport certainly has the ability to lift or crush

a nation, and rugby is no exception. After what

was a promising, and then hugely disappointing

RWC 2011 for the Springboks, as a nation we now

await the dawn of an exciting new era. TAB

Page 58: The African Business Journal Dec 2011 - John Pinching

PreTTY flYkruGer mPumAlAnGA inTernATiOnAl AirPOrT

058

Page 59: The African Business Journal Dec 2011 - John Pinching

AViATiOn

PreTTY flYkruGer mPumAlAnGA inTernATiOnAl AirPOrT

Page 60: The African Business Journal Dec 2011 - John Pinching

60 AVIATION � Kruger mpumalanga International airport

Page 61: The African Business Journal Dec 2011 - John Pinching

61DECEMBER 2011 � The African Business Journal

When you arrive at KmIa, the spectacular views and friendly faces appear well before take-off. Fasten your seat belts and enjoy the flight as South africa’s most majestic airport transports you into wonderland.

Page 62: The African Business Journal Dec 2011 - John Pinching

62 AVIATION � Kruger mpumalanga International airport

sOme AirPOrTs Are a bit like stepping into a Kaf-

kaesque nightmare of sinister sterility. KMIA (Kru-

ger Mpumalanga International Airport), however,

want its holiday-makers and business customers

to enjoy a dream-start to their trip. The company

prides itself on ensuring that every jaunt leaves

passengers wanting to reach for the skies.

Soaring to new heightsThe idea for KMIA came about when the pro-

vincial government realised they needed an

upgraded international airport, as a response to

increased demand. Construction commenced in

2001 and, after all the licences were obtained, it

was completed in October 2002. From the begin-

ning it was very clear that there was nowhere on

earth quite like this charismatic little gem in the

heart of the South African countryside—near Nel-

spruit. Currently the scheduled airline services in-

clude links to Johannesburg, Cape Town, Durban

and Livingstone; featuring 25 flights every day.

Its original manifesto was committed to

making the airport experience as pleasurable as

possible—and that’s exactly what the company

still aims for today. To enhance the feeling that

passengers are fully immersed in bush land

there are even a couple friendly of impala wan-

dering around—apparently, they’ll help you with

your luggage, if you ask nicely.

The airport has a 3.1 km runway, which is

able to carry any kind of aircraft, up to the size

of Boeing 747. There are also 80 permanently

Page 63: The African Business Journal Dec 2011 - John Pinching

63DECEMBER 2011 � The African Business Journal

employed members of staff. Due to the delight-

ful surroundings and family atmosphere that the

airport promotes, the staff turnover is very low

and many of the workforce have been carrying

out their jobs from the very first day of business.

They haven’t gone to look for greener pastures—

there aren’t any.

Manager Marcello Martini has also been there

since the beginning and he has in no doubt what-

soever about what makes the facility so magical.

“The airport itself is unique; there is noth-

ing else like it in the country and it’s also got

the largest thatched roof structure in Africa,”

he enthuses. “It was designed and built to give

passengers the feeling that they’ve landed in a

national park as soon as they get there.”

Silver liningThe airport was initially designed to handle

between 500-600 thousand passengers. Ev-

ery year, however, passenger numbers and air

traffic movement grow, as people discover an

aviation masterpiece.

When the directors started developing the

airport they had a very definite vision, which has

come to fruition in style—quite literally. Initially,

the tour operators arrive with their open air ve-

hicles, before taking the passengers to the lodge.

This takes about an hour by car and throughout

the journey they are driving through mesmerising

countryside. By the time they arrive at the airport

they are under the spell of the bush and seldom

do holidays begin in such a spectacular fashion.

Page 64: The African Business Journal Dec 2011 - John Pinching

64 AVIATION � Kruger mpumalanga International airport

KMIA has even featured in the New York

Times as one of the most desirable places to visit

(which is unusual for an airport!) and customers

have regularly been known to take more photos

at KMIA than they do on their holidays.

“usually people find airports sterile and a bit depressing. at ours people have smiles on their faces and don’t want to leave—it’s an unforgettable experience. I’m sitting in probably the most picturesque office in the country,” adds martini proudly.

Marius Nel, who has also enjoyed a decade

at KMIA, thinks the key to success lies in dispel-

ling what an airport ‘should’ be and embracing a

different formula. “In comparison with a big city

airport, we are rural, so everything around us is

a tourism venue. We don’t have any pollution; we

just have greenery and wildlife.”

Flight futureOne of the most notable achievements for the

airport is the success it has had in competing as

a private player in a market dominated by facilities

owned and operated by the national government.

If proof were needed, other privately owned

airports have actually contacted KMIA seeking

Page 65: The African Business Journal Dec 2011 - John Pinching

65DECEMBER 2011 � The African Business Journal

sound business advice. Even the newly built

airport in Swaziland has visited to witness exactly

how the staff are managing and operating the

airport so smoothly.

“Aviation is a very exciting industry because

it’s service-related industry and the challenge is

always to keep exceeding expectations. We are

competing against big commercial airports, but

because we are private, we can make our own

changes and charge our own fees. KMIA can

also increase output at the moment without an

increase of manpower. This makes us very com-

petitive,” explains Martini.

In the next few years KMIA—once it has

reached 300,000 customers per year—will

be expanding on the size of the apron, before

extending the terminal building. It’s certainly an

exciting time to be on board.

KMIA’s story shows that in order to excel in

any industry the prerequisites are heart, soul,

passion and—if you can possibly get them—some

interesting animals. No wonder this stunning air-

port is the very model of a high flyer. TAB

www.mceGlOBAl.neT

Business or leisure, fly Airlink – the Regional Feeder Airline – linking you tomore of the smaller towns, cities and regional centres in Southern Africa, thanany other airline. Earn Voyager Miles and enjoy convenient connections withSAA, their Star Alliance Partner airlines and other international carriers. Bookyour flight direct on www.flyairlink.com or contact your Travel Agent or SAACentral Reservations on +27 11 978 1111.

Spread your wings, fly Airlink – for frequent, affordable and reliable service.

Maseru

Durban

East London

Port ElizabethCape Town

Maputo

Manzini

Nelspruit

George

Kimberley

Umtata

Beira

Johannesburg

PietermaritzburgUpington

Harare

AntananarivoMadagascar

Bulawayo

Polokwane

PembaMozambique

Bloemfontein

Phalaborwa

Ndola

Lusaka

Livingstone Tete

Nampula

Page 66: The African Business Journal Dec 2011 - John Pinching

066

HYunDAi AuTOmOTiVeGear change

Page 67: The African Business Journal Dec 2011 - John Pinching

TrAnsPOrTATiOn

HYunDAi AuTOmOTiVeGear change

Page 68: The African Business Journal Dec 2011 - John Pinching

68 TRANSPORTATION � hyundai automotive

In motoring terms hyundai—the jewel in Korea’s motoring crown—is a byword for quality. mature, modern, elegant, reliable and smooth, hyundai’s vehicles have been dazzling drivers for decades

Page 69: The African Business Journal Dec 2011 - John Pinching

69DECEMBER 2011 � The African Business Journal

Page 70: The African Business Journal Dec 2011 - John Pinching

70 TRANSPORTATION � hyundai automotive

in TODAY’s cOmPuTeriseD world, things often move

forward at a bewildering pace. Hyundai have always

produced cars that set the pace—quite literally—

when it comes to modern motoring.

Using all its experience and nous the company

has managed to maintain its traditions, while mov-

ing with the times and meeting the requirements of

a demanding marketplace. With a bit of fine tuning

the company overcame its difficulties at the start of

the century and has now emerged phoenix-like to

park among the top manufacturers in the country.

Reinventing the wheelIt’s 2011 and Hyundai South Africa—based in

Page 71: The African Business Journal Dec 2011 - John Pinching

71DECEMBER 2011 � The African Business Journal

Page 72: The African Business Journal Dec 2011 - John Pinching

72 TRANSPORTATION � hyundai automotive

Page 73: The African Business Journal Dec 2011 - John Pinching

73DECEMBER 2011 � The African Business Journal

Suppliers in:• Turboformance Turbo Protectors• Offical supplier and fitment agent to Hyundai South Africa• Official Willard Battery agent, including car, truck, solar, standby and traction• We also fit zenon light kits and dual battery systems

“We sell peace of mind”

It is our mission to further impact as leaders in the supply and fitment of batteries, Turbo Protectors and related equipment on a professional level.

Battery Cabin was established in 1980 and put under new management in 1996 under the ownership and leadership of Mark Davis. Battery Cabin has been supplying batteries and related items to the public and trade for 31 years.

Tel 011 970 2716 | 011 970 1150 | Fax 011 970 2055 [email protected] | [email protected]

Turbochargers – supply, service & installations of all makes of Turbochargers

TURBOFORMANCE R.S.A. Tel: +27 (013) 753 2885 Fax +27 086 623 7062Email: [email protected] Website: www.turboformance.co.za

Page 74: The African Business Journal Dec 2011 - John Pinching

74 TRANSPORTATION � hyundai automotive

the heart of Johannesburg—is enjoying a renais-

sance. Its loyal troop of over 150 employees have

enjoyed their greatest year in South Africa to

date. Sales have soared and everyone is happy—

especially the customers!

The brand was first launched in South

Africa back in 1995. This early incarnation ran

until the start of the new millennium. It was

then taken over by the current management in

April 2000 and hasn’t looked back. Since then

it has been enthusiastically providing Hyundai

motor vehicles (from light and medium com-

mercial vehicles, up to 4 tonnes), while also

distributing parts and accessories.

Marketing Director Stanley Anderson has wit-

nessed an amazing turnaround in the company’s

fortunes. “We’ve shown huge growth in the past 11

years. After the previous liquidation, there was a lot

of negativity around the brand,” he says. “When we

took over, The Sunday Times, said “nobody in their

right minds would ever buy a Hyundai”, but now

we’re in the top three, out of 50 brands.”

The reason for Hyundai’s success in the last

decade has primarily been because of its brilliant

and inspiring products. A notable turning point

was the launch of the Tucson, which was pivotal

in re-establishing the brand and being embraced,

once again, by the motoring market.

Page 75: The African Business Journal Dec 2011 - John Pinching

75DECEMBER 2011 � The African Business Journal

Tel: +27 16 362 0311-5 Email: [email protected] www.btm.co.za

BTM started in 1978 manufacturing bullbars, towbars and roll bars to the automotive industry. As with any company we had the privilege of going through the ups and downs the industry threw at us. As from the 1st of October 2011, BTM is a proud partner in Trimas Corporation which allows us to be very competitive in the market in terms of OEM products. Trimas Group, consists of four companies that produce high quality, custom-engineered roof racks and towing products for the Australian-based original equipment manufacturer market.

Through links to its international TriMas partners, the unit has world-wide access to advanced product research, development and technology. We are now able to offer products from Hayman Reese, Rola Roof racks, Parkside etc. The ability we as a South African manufacturer, now have to compete with overseas technology and products will put BTM in a different league to local suppliers. We trust that this will enable us to grow the local OEM market and to offer above average products and service to our various customers

Proud to be associated with Hyundai Automotive

Page 76: The African Business Journal Dec 2011 - John Pinching

76 TRANSPORTATION � hyundai automotive

Durban - Johannesburg - Cape Town

Specializing in:• Automotive Logistics • International Forwarding

• Export Forwarding (Land, Sea & Air)

• EDI Customs Clearing • Warehousing (Bond & Free) • Distribution

• Supply Chain Management • Consulting • Marine Insurance

DurbanJohannesburg

Cape Town

+27 (0)31 337 5506+27 (0)11 974 8914+27 (0)21 385 1866

[email protected]

Get in touch today for more informationSince 1953

Page 77: The African Business Journal Dec 2011 - John Pinching

77DECEMBER 2011 � The African Business Journal

From that steady re-entry Hyundai has fol-

lowed up with a series of absolutely world class

vehicles; leading the market with models such as

the Accent, Santa Fe and the i35. These inven-

tive and stylish creations were largely respon-

sible for fine tuning the brand and creating a new

design language for Hyundai. Another develop-

ment has been the design centre in Germany,

which has proved to be a nerve centre of innova-

tion, panache and kudos.

Premier league statusThe new models have sold in their thousands

and consequently the company has developed

a reputation for unconditional quality and out-

standing aesthetics.

“The new status for Hyundai its brand direction

is ‘modern premium’. This is a model in which we

offer a premium quality product that is an accept-

able or affordable price for as many people as

possible,” explains Anderson. “We believe that pre-

mium quality shouldn’t just be for the elitist few.”

The insistence on a superior build has also

lent real individuality to the brand. Indeed, the

distinctive appearance of Hyundai vehicles has

been mightily refreshing in an industry where

cars have started to become indistinguishable.

As well as individuals and couples, families

Page 78: The African Business Journal Dec 2011 - John Pinching

78 TRANSPORTATION � hyundai automotive

have also taken a shine to the contemporary Hyun-

dai range. The cars are at once practical and desir-

able, therefore providing modern families with the

ultimate performance from their vehicle.

Another vehicle that has sold in very large

numbers is the versatile Hyundai H100 pick-

up truck. It provides the ideal solution to South

Africa’s unforgiving landscape and multitude of

labour intensive industries like mining and prop-

erty development.

Fast forward to the futureWith a great many sales already on the books, and

growth in the last 12 months rising to the tune of

16 per cent, the success of the last few years is

set to continue unabated. “Globally the demand

for the Hyundai brand has increased year on year,

and there is every chance that we will increase the

number of plants in South Africa,” enthuses Ander-

son. “Next year we could easily increase the current

output by 10 or 20 per cent.”

Having been at the helm for 12 years, Stan-

ley has put plenty of miles on Hyundai South

Africa’s clock. While at the company he has

overseen all the vast array of gear, colour, oil and

engine changes, but even he couldn’t have envis-

aged quite such a smooth and sustained period

in the fast lane.

Page 79: The African Business Journal Dec 2011 - John Pinching

79DECEMBER 2011 � The African Business Journal

“It has been quite remarkable. I’m honoured

because most rental companies didn’t want to

look at us 10 years ago, and now we’re right

back at the top where we belong.”

It just goes to show, there’s no substitute for

class. Surely an important lesson lies in Hyundai

South Africa’s story, which every company should

take heed of. Sometimes you need to go in reverse

before you start accelerating. TAB

worldwide.hyundAi.com

Page 80: The African Business Journal Dec 2011 - John Pinching

fATs THe wAY TO DO iT080

on the eve of its 20-year anniversary Forwarding african Transport Services (FaTS) can look back on a truly global service, while always looking forward to the next delivery.

Page 81: The African Business Journal Dec 2011 - John Pinching

fATs THe wAY TO DO iT080

on the eve of its 20-year anniversary Forwarding african Transport Services (FaTS) can look back on a truly global service, while always looking forward to the next delivery.

TrAnsPOrTATiOn

Page 82: The African Business Journal Dec 2011 - John Pinching

82 TRANSPORTATION � Forwarding african Transport Services

‘keeP THe ecOnOmY moving!’ It’s been the cen-

tral message from government, politicians and

virtually everyone you happen to bump into.

FATS is one of the few companies that can claim

to have done precisely that. Indeed, motion,

progress and movement is at the very heart of

everything it does.

Travel companionFor almost two decades FATS has shipped, flown,

packed, delivered and stored cargo all over the

world. Thousands of customers have relied on its

multitude of services to ensure their vital wares

arrive safely, securely and promptly. No project

or item is too awkward or obscure—the team at

FATS thrive on a challenge! The company has a

vast array of transport solutions to suit customer

needs both domestically and internationally.

The company is situated in the heart of

Durban and initially built its reputation in South

Africa, while going on to expand into central Af-

rica and globally. Its offering of road, air, sea and

specialised freight services also encompass a

multitude of solutions and strategies.

Caron Harris and her sister, Elaine—who has

recently retired—started the business in 1992

and since then they haven’t looked back. Their

partnership has been absolutely pivotal to the

success of the company.

“We are quite the opposite and excel in dif-

ferent areas. Trust is an important aspect of any

partnership, and if you can’t trust your family

who can you trust?” explained Caron. “My sister

is really a people person and I’ve got a technical

background. It’s a good cop, bad cop scenario!”

With the new management team, the key has,

again, been a good mix of characters that bring

different elements to this ambitious company.

Driving forwardThe company’s speciality and niche market when

it first ventured into the business was to deliver

cars to central Africa by roads, up to DIC and

down to Zambia, Zimbabwe, Malawi and Mozam-

bique. It gained a fine reputation for getting jobs

done professionally and negotiating journeys in

the most efficient way possible.

Its domestic success has given rise to exciting

leads into China and India. Naturally, Caron is really

very excited about an increasing global enterprise.

“It’s about broadening our horizons and specifically

choosing partners worldwide. Now we really can

offer a full logistical solution now, growing our sea

and our air side of business,” enthused Caron.

In order to keep up with the ever-increasing

demand, FATS’s main truck deployment station

partner in central Africa has grown from two ve-

hicles to the 258 it has today.

Page 83: The African Business Journal Dec 2011 - John Pinching

83DECEMBER 2011 � The African Business Journal

Page 84: The African Business Journal Dec 2011 - John Pinching

84 TRANSPORTATION � Forwarding african Transport Services

The company has also maintained continuity

with its workforce, while also utilising the skills

of contract and seasonal workers. It’s a system

that offers exactly the level of flexibility required

within a modern haulage business.

This level of knowledge and planning has

enabled the FATS to actually thrive during a po-

tentially turbulent time. Indeed, its last quarter

report saw an increase of 68 per cent, making it

the best year in the company’s history.

Pivotal to this continued success has been

the ability to harbour the innovation and impetus

of a multinational company while retaining the

ethos of a family business.

Writing on the wallThe company is always looking at new mar-

keting channels and has already had some

successful radio-based campaigns. Recently,

however, FATS came up with a brilliant plan to

Page 85: The African Business Journal Dec 2011 - John Pinching

85DECEMBER 2011 � The African Business Journal

inspire young people, connect with street art

and imprint the company’s name further on to

the urban landscape—quite literally.

The stroke of genius was a graffiti competition

in which three artists committed their designs to

a huge surface, in the shape of the unmistakable

FATS logo (a slightly over-nourished woman haul-

ing some cargo). The event attracted hundreds of

guests and, once again, the word on street was

that FATS continues to break new ground.

It certainly has been an incredible journey,

which started with an idea from two sisters, and

has grown into an international operation that

continues to gain momentum. With so many

miles on the clock the team have shown no signs

of slowing down and are more excited than ever

about delivering a brilliant service. TAB

The City Couriers Group offers customers integrated distribution, transport and warehousingsolutions through a national network. Our network consists of 118,000 square metres ofwarehousing under roof, 700 vehicles and 1,500 dedicated staff and we constantly strive foroptimization to improve service at the lowest possible cost. The City Couriers group has extendedcapability in long distance transport, through City Linehaul.

“ Customer focused, solution driven...”

Logistics specialists

Providing key customers with turn key container management solutions through our containerparks reliable service at low overall cost and understanding that the cost of inefficiency in supplychain, service quality and reliability are critical objectives to The City Couriers Group.

w w w . c i t y c o u r i e r s . c o . z a350 Umhlangane Road, Riverhorse Valley, Effingham, Durban, South AfricaT +27 (31) 580 2000 F +27 (31) 569 6254

Page 86: The African Business Journal Dec 2011 - John Pinching

086

Page 87: The African Business Journal Dec 2011 - John Pinching

Stars of ccTVG4s

securTY

Page 88: The African Business Journal Dec 2011 - John Pinching

88 SECURITY � G4S

When your livelihood depends on places, products, people or possessions, security is everything. This is exactly why G4S thrive on producing intelligent systems, designed to give its customers complete peace of mind.

Page 89: The African Business Journal Dec 2011 - John Pinching

89DECEMBER 2011 � The African Business Journal

Page 90: The African Business Journal Dec 2011 - John Pinching

90 SECURITY � G4S

in TODAY’s cOnsTAnTlY changing, technologi-

cally advanced world, optimum security is a

priority for most businesses. Hi-tech solutions

and forward thinking have replaced padlocks

and crossed fingers, and G4S have been at the

epicentre of the revolution.

Key notesG4S is a global risk management consulting

and specialist security company, formed through

the amalgamation of Wackenhut, Group 4 and

Securicor in 2004. The merger has resulted in a

formidable business, with decades of combined

experience and expertise, employing well over

half a million people worldwide.

The G4S Africa headquarters are based

in Pretoria, providing a vital hub linking all the

African countries. Trusted by well over 13,000

customers in South Africa, the company pro-

vides an unrivalled range of security services

to a wide spectrum of customers in both public

and private sectors. It specialises in solving

security and safety in cases where the threat is

considered particularly high.

Through the development of long-term part-

nerships with customers in key sectors, the com-

pany devises strategies to help clients deliver

their business objectives, manage risks, protect

critical assets and improve service delivery.

As well as its South Africa operations

G4S operates in 29 countries across the

African continent, including Kenya, Ghana,

Mozambique, Namibia, Tanzania, Mauritania,

Malawi, Uganda, DRC, Morocco and Nigeria.

This unique network of operations has created

an excellent platform to support global

customers working in key sectors such as oil,

gas, ports and mining.

When you’re in the long-haul, you need a truck that delivers. Take our Hino 700 range, which now sports

Automated Manual Transmission. This not only makes our trucks more comfortable to drive, it also helps

prevent costly clutch degradation. Our engine derivatives range from 380 HP to 480 HP, offering you a range

to handle any load. And our cabs come in single or double sleepers.

See, trucking is in our blood. It has always been and it will always be.

The automatic choice.

TO

YT

1398

91/

JHB

/E

139891TOYT 27.9X21.6.indd 1 8/15/11 8:42 AM

Working across a wide range of geographic

markets and business sectors, these

bespoke services include:

• Aviation security

• Security systems (CCTV, Access

Control/Time & Attendance, intruder

detection, fire panels, video analytics)

• Remote off-site monitoring (ROM)

• Alarm monitoring & response

• Close protection duty

• Journey management

• Special Cargo Handling

• Loss reduction software

• Security management software

• Personnel screening & vetting services

• Cash solutions

serVices

Page 91: The African Business Journal Dec 2011 - John Pinching

91DECEMBER 2011 � The African Business Journal

When you’re in the long-haul, you need a truck that delivers. Take our Hino 700 range, which now sports

Automated Manual Transmission. This not only makes our trucks more comfortable to drive, it also helps

prevent costly clutch degradation. Our engine derivatives range from 380 HP to 480 HP, offering you a range

to handle any load. And our cabs come in single or double sleepers.

See, trucking is in our blood. It has always been and it will always be.

The automatic choice. T

OY

T13

9891

/JH

B/E

139891TOYT 27.9X21.6.indd 1 8/15/11 8:42 AM

Page 92: The African Business Journal Dec 2011 - John Pinching

92 SECURITY � G4S

Moving with the timesIn a rapidly evolving country like South Africa,

G4S has had to constantly re-evaluate its ser-

vice provision, as new and exciting technology

emerges. It is this meticulous approach which

has been pivotal to the company’s success, ac-

cording to Marketing Manager Daphne Du Preez.

“A stand-alone guarding service is not conducive

to sustainability, especially when technology is so

progressive and continues to evolve. Any secu-

rity service provider not already recognising this

trend will be left trailing behind,” she says. “With

the rapid advancement of technology, G4S has

ensured that we maintain our lead in the market

place by designing our own innovative product

lines and software packages.”

Due to recent economic trends, which have

dictated that customers need to cut costs with-

out increasing risks, G4S has incorporated cre-

ative combinations of technology and manpower

to keep providing exceptional products that won’t

break the bank.

In addition to the financial circumstances,

the company has also adjusted in accordance

with the growing emphasis on health and safety

management in the workplace.

“More and more customers require us to com-

ply with, participate in and assist with this aspect

of the business. Health and safety now encom-

passes additional infra-structure, fire-fighting and

first aid. G4S has risen to the challenge and has a

robust approach, employing qualified individuals

to drive these essentail areas,” explains Du Pleez.

Green daysThe impact of climate change and the ever-

increasing pressure to reduce carbon footprints,

has also changed the way G4S operates over the

last couple of years.

Indeed, when it comes to measuring, report-

ing and reducing greenhouse gas emissions,

G4S is the leader in its field and, since 2009, the

company has set itself a series of challenging

targets to increase sustainability.

Page 93: The African Business Journal Dec 2011 - John Pinching

93DECEMBER 2011 � The African Business Journal

“In Sa alone we have achieved an eight per cent reduction in our employee intensity measurement, installed recycle bins, adopted an electricity monitoring system and implemented ‘green’ office equipment procurement, as standard,” enthuses du Preez

Planning aheadG4S is one of only 20 FTSE 100 companies that

have delivered consecutive earnings growth over

the past five years, demonstrating not only the

inherent strength of the business and market

position, but also its sustainability. At the heart of

the company’s ethos is an insistence on integrity,

supported by its recognition as an ethical trader.

In the New Year and beyond the company

will continue to bolster its impressive African

footprint by running operations in Tunisia, South

Sudan, Ethiopia and Liberia.

In the last three years G4S have received no

less than 39 industry awards, recognising the

quality of its people, training and security solu-

tions. Proving that it is running rings round the

opposition the company has also been announced

as the Official Security Services Provider to the

London 2012 Olympic & Paralympic Games.

After such a rewarding and progressive few

years, G4S continues to make great strides in

galvanising the industry. Suffice to say, embrac-

ing the future has never felt so secure. TAB

www.G4s.cO.ZA

Page 94: The African Business Journal Dec 2011 - John Pinching

sTAYcOlD inTernATiOnAlThe king of cool

094

Page 95: The African Business Journal Dec 2011 - John Pinching

sTAYcOlD inTernATiOnAlThe king of cool

refriGerATiOn

Page 96: The African Business Journal Dec 2011 - John Pinching

96 REFRIGERATION � Staycold International

Page 97: The African Business Journal Dec 2011 - John Pinching

97DECEMBER 2011 � The African Business Journal

crikey—it’s freezing inside! Which is just how Staycold International like it. after all, the company have been staying cool for over three decades

Page 98: The African Business Journal Dec 2011 - John Pinching

98 REFRIGERATION � Staycold International

in An AGe where fresh produce has never been

more desirable, the human race has become

ever-more reliant on refrigerating, chilling and

freezing facilities. Extending the life of food and

drink is exactly what Staycold has been doing

since 1979 and, to this day, it remains passion-

ate about reinventing cooling appliances for the

next generation. Suffice to say, with this compa-

ny, it’s all in the name.

Cold playWhat you really want when you’ve got a six

pack of beer and—of course some fruit and

veg— in the fridge, is for everything to be a at

the perfect temperature.

During 1979 punk rock reached its sum-

mit, Sigourney Weaver tackled alien life forms

and Byorn Borg fought off rampant teenagers

at Wimbledon. The Swedish legend, however,

wasn’t the only iceman making an impact—it was

also the year in which a pair of ambitions direc-

tors formed Staycold International. It was the

beginning of a brave new era and a great time to

be involved in an evolving industry

Since those halcyon days the company has

manufactured a vast array of display coolers,

freezers and smaller chest-based coolers. The

company enjoys a fine reputation for quality,

Page 99: The African Business Journal Dec 2011 - John Pinching

99DECEMBER 2011 � The African Business Journal

C

M

Y

CM

MY

CY

CMY

K

Page 100: The African Business Journal Dec 2011 - John Pinching

100 REFRIGERATION � Staycold International

reliability and versatility, often releasing new,

modernised models, incorporating cutting-edge

technology.

Reassuringly, its range of products are as

confident and ultra-cool on the outside as they

are on the inside, with a futuristic appearance,

E Glass and frontal ventilation. Whatsmore, the

rate of cooling is up to three times faster than ri-

val units. Ranges include both hinged and sliding

door varieties, while the open display, multi-deck

option promotes items brilliantly in a retail envi-

ronment. There are also units available, which

can effortlessly maintain sub-zero temperatures.

Camping fridge freezers add another dimen-

sion to the brand by offering a portable and

good-looking solution, which allows customer to

dine in style, wherever they are.

The company can also produce units to the

exact specifications required by customers in-

cluding details like multiple shelving, anti-perish-

able silicone, galvanised steel interior, polyure-

thane insulation and illuminated header lights.

In addition, the company’s products also

have a life span and price tag, which freeze its

rivals out—quite literally.

Currently the most popular models come

with ‘HD’ and ‘SD’ prefixes.

Staycold has always been a determined and

Page 101: The African Business Journal Dec 2011 - John Pinching

101DECEMBER 2011 � The African Business Journal

Page 102: The African Business Journal Dec 2011 - John Pinching

102 REFRIGERATION � Staycold International

ground breaking leader in a very competitive field.

“The competition has increased as the search for

an ever better, more efficient unit continues to gath-

er pace,” explains Manager Benitto Nel. “This has

made us expand our research and development ef-

forts. Quality and long life cycles have always been

of paramount importance to us.”

“Just about every manufacturer has by now

copied the sliding door principle pioneered by

us,” he adds.

Cool customersThe company has two nerve centres—in South

Africa and England—and has employed a multi-

talented workforce of 130 throughout 2011. As

well as supplying the domestic market, the com-

pany also provides display coolers to major bot-

tlers, while also exporting coolers to both the UK

and Australia.

Staycold researchers are very interested in

adapting products to suit the specific environ-

ments and climate, in different countries and

regions.

One of these ground-breaking creations is a

unit specifically designed to handle African condi-

tions. It is able to perform even in areas with a

poor power supply, high heat and humidity. Stay-

cold products actually remain at three degrees

even at tropical temperatures.

Various changes to compressors, glass, re-

frigeration CFC gas variations, lighting and using

technology uniquely, have helped the company

improve the effectiveness of every unit.

“We are determined to keep exploring the

African market, bringing our products to other

countries and continuing to supply our neigh-

bours,” enthuses Nel.

Factory recordStaycold has always seen the benefit of moving

with the times and constantly reinvests in the

company—energising its buildings, products and

employees.

Page 103: The African Business Journal Dec 2011 - John Pinching

103DECEMBER 2011 � The African Business Journal

Page 104: The African Business Journal Dec 2011 - John Pinching

104 REFRIGERATION � Staycold International

Page 105: The African Business Journal Dec 2011 - John Pinching

105DECEMBER 2011 � The African Business Journal

The factory has recently been extended in

order to ensure the smooth running of produc-

tion and guarantee optimum quality control. The

extension involved the addition of 4500 square

meters to the operation. Meanwhile, the compa-

ny is also determined to keep promoting environ-

mentally sound practices and solutions.

“Staycold has achieved record production

levels and proved to, both ourselves and our

customers, that the company can adapt quickly,

recover quickly and respond to customer de-

mands,” says Nel.

“We know that we can deliver and with that

belief the company will continue to manufacture

excellent products at a high rate; enabling us to

further expand into even more markets.

Over the next few years the company will be

striving to develop the global brand, keep ex-

ceeding customer expectations and making sure

they remain in the premier league of refrigerat-

ing technology. As long as they have ice running

through their veins the Staycold staff will make

sure your goods stay cold. TAB

www.sTAYcOlD.cO.ZA

Page 106: The African Business Journal Dec 2011 - John Pinching

l.A. sTAAlThe steel sovereign106

Page 107: The African Business Journal Dec 2011 - John Pinching

l.A. sTAAlThe steel sovereign

cOnsTrucTiOn

Page 108: The African Business Journal Dec 2011 - John Pinching

108 CONSTRUCTION � l.a. Staal

Western cape-based steel construction experts la Staal is putting more than two decades worth of experience into each of its projects and, from its base in the South african province, is playing a leading role in the country’s steel industry.

since iTs fOrmATiOn in 1988 LA Staal has grown

from humble beginnings into one of the Western

Cape’s leading experts on steel construction.

Today the company designs, manufactures

and constructs a range of steel structures, from

factories and warehouses to packing sheds and

cold storage complexes.

It is also experienced in outfitting shopping cen-

tres, schools, sports pavilions, community centres

and a range of other buildings that require steel

structures or components, and provides repair and

extension services for existing structures.

With 24 years of successful business devel-

opment under its belt LA Staal is using its experi-

ence to stay ahead of the competition.

“You learn so much over the years that you

use it try to and stay ahead of your competitors,”

says chief executive officer Charles Lambrechts.

“At the moment we are designing and manufac-

turing what the client wants.

“We don’t manufacture in bulk like a lot of

Page 109: The African Business Journal Dec 2011 - John Pinching

109DECEMBER 2011 � The African Business Journal

other people, but we do manufacture to the cli-

ents’ specifications, and from our side we always

try to use our expertise from over the years to try

and help the client save money.”

LA Stall utilises its skills and services to work

with a range of businesses from Western Cape’s

significant agricultural sector to industrial and

commercial operations from across the province

and beyond.

Despite so many different building materials

being available to contractors and building experts

nowadays, the advantage of using steel, notes

Lambrechts, is that it can be used in wider spans

between columns than a material such as wood,

allowing for wider and structurally-sound structures;

something that is vitally important when working

with big-name clients with plenty of products to store.

Out in AfricaFrom its base in Western Cape, the company has

also provided structures to companies outside of the

state and also in other countries including Angola.

“The work that we normally do in Angola in-

volves putting up churches, agricultural projects,

cold storage facilities, and factories,” remarks

Lambrechts.

But the key to the company’s successful

business model, Lambrechts says, lies in provid-

ing customised steel construction and its involve-

Page 110: The African Business Journal Dec 2011 - John Pinching

110 CONSTRUCTION � l.a. Staal

ment from early in the construction stage of

many of its projects.

“Over the years we have built up a client base

and by keeping many of our customers happy we

have found they have come back to us,” he notes.

“If you provide them with good quality work

and they’re satisfied then, at the end of the day,

they will come back to you.”

Structural successIn building long-term relationship with its clients,

LA Staal is working to ensure that the service it

offers its customers includes maintaining the

steel structures it has erected.

“There are a lot of companies that take the

cheaper option that often find themselves left

without help after a building has been put up,

such as a leak or some of the sheets blowing

off,” comments Lambrechts.

“When one of our customers is in trouble we

will be there to help them,” he notes. “Even if is

just one sheet that requires replacing, we will re-

place it,” he remarks. “If they’ve got a leak, then

we’ll go and fix the gutter.”

With its 200-tonne monthly capacity, LA Staal

is able to run up to 40 projects at any one time —

a number that it is unlikely to increase in order to

remain focused on quality, rather than quantity.

“If one of our clients asks us to put up a door

or change something or a structure, then we

Page 111: The African Business Journal Dec 2011 - John Pinching

111DECEMBER 2011 � The African Business Journal

must be able to have the capacity to help them,”

says Lambrechts. “We can’t just chase money at

the end of the day — we must service our clients

and we must provide them with back up.”

Strength in sombre timesThe effect of the global economic downturn on

the steel industry has led LA Staal to shift its

focus towards the commercial markets.

“It has affected us and our turnover is down, be-

cause in the Western Cape the economy starts with

the farmers and if the farmers are struggling, then

the rest of us will struggle,” remarks Lambrechts.

“As the bulk of our work is within agricul-

ture, we have tried to shift our focus a little more

towards the commercial side and we are looking

towards the commercial sectors to make up for

what we lose in agricultural projects.”

By providing a wide range of service options

and reliable products to customers from a variety

of industrial backgrounds it is no surprise that LA

Staal is finding itself in demand from businesses

looking for professional assistance. In providing

such services and products LA Staal has ended up

playing a leading role in the development of many

industries across the southern tip of the African

continent. TAB

lAsTAAl.cO.ZA

Page 112: The African Business Journal Dec 2011 - John Pinching

sTefAnuTTi sTOcks HOlDinGsbuilding bridges

112

Page 113: The African Business Journal Dec 2011 - John Pinching

sTefAnuTTi sTOcks HOlDinGsbuilding bridges

cOnsTrucTiOn

Page 114: The African Business Journal Dec 2011 - John Pinching

114 CONSTRUCTION � Stefanutti Stocks holdings

as one of South africa’s leading construction groups, and with the capacity to deliver a range of projects in some of africa’s toughest markets, Stefanutti Stocks is playing a leading role in development the continent’s construction business.

wiTH mOre THAn 12,000 employees on its books

and the capacity to deliver a variety of projects

across Africa, Stefanutti Stocks (Pty) Ltd is playing

a leading role in the transformation taking place

across the continent’s construction market.

From its South African base, the multi-disci-

plinary group is aiming to become the preferred

construction partner for all of its stakeholders as

it establishes a comprehensive track record of

industry excellence.

Along with its Level 3 B-BBEE contributor ac-

creditation, the group has been awarded a Grade

9 rating from the South African Construction

Industry Development Board (CIDB), proving that

it has an unlimited tender capability.

Constructing connectionsFrom the construction of a 129-room hotel in

the South African town of Orange and improve-

ment work on Bospoort Dam, to the widening

of Ben Schoeman Dock, Stefanutti Stocks has

Page 115: The African Business Journal Dec 2011 - John Pinching

115DECEMBER 2011 � The African Business Journal

been utilising its skills and abilities across a wide

range of projects in Southern Africa.

The company has established a presence in

Angola, Botswana, Malawi, Mozambique, Na-

mibia, Swaziland, Zambia and Zimbabwe, as well

as its home base of South Africa, and has even

ventured further north.

In partnership with Stefanutti Stocks Geo-

technical, Stefanutti Stocks Civils recently com-

pleted a project in remote Sierra Leone to con-

struct three rail bridges.

Tendered by African Minerals Limited, the

contract was part of a 120 kilometre railway line

project with the aim of transporting iron ore from a

mine in the Tonkolili district to the port of Pepel.

The joint venture was completed and handed

back to the client on time despite a tight sched-

ule and logistical problems associated with the

isolated nature of the project.

Each of the three structures underwent a

geotechnical study, which resulted in the deci-

sion to installed permanently-encased oscillated

piles on two of the bridges, and permanently

encase auger piles on the other.

Stefanutti Stocks Geotechnical approached

Bauer Germany to supply two BG28 piling rigs

and one MC64 crawler crane along with spe-

cialised equipment for piling through boulders;

CORPORATE BANKINGCORPORATE

NET#WORK BBDO 8012667Nedbank Limited Reg No 1951/000009/06, VAT Reg No 4320116074, 135 Rivonia Road, Sandown, Sandton, 2196, South Africa. We subscribe to the Code of Banking Practice of The Banking Association South Africa and, for unresolved disputes, support resolution through the Ombudsman for Banking Services. We are an authorised financial services provider. We are a registered credit provider in terms of the National Credit Act (NCR Reg No NCRCP16).

As primary banking partner to Stefanutti Stocks Holdings Limited for over 20 years, we are delighted to be associated with one of the top-tier companies in the construction sector. We pride ourselves on delivering exceptional service and customised

solutions based on a sound understanding of your business needs. For more information contact us on +27 (0)11 294 3279.

The keystone to a lasting partnership is understanding.

Page 116: The African Business Journal Dec 2011 - John Pinching

116 CONSTRUCTION � Stefanutti Stocks holdings

STEFANUTTI RECENTLY COMPLETED A THREE-BRIDGE PROJECT IN SIERRA LEONE.

Page 117: The African Business Journal Dec 2011 - John Pinching

117DECEMBER 2011 � The African Business Journal

equipment that ensured the piling phase of the

project was completed successfully and on time.

Two of the bridges, known as Tonkolili and

Tabai, consisted of three 22-metre-long spans,

while Rokel Bridge consisted of five 22-metre-

long spans.

According to the company, the single biggest

challenge on the project was its remote nature and

the resulting logistical issues associated with it.

Another challenge it was forced to overcome

was the annual rainfall Sierra Leone experiences.

With two seasons a year rotating between dry

and wet conditions, the wet season would end up

testing the company to its limit.

Despite restrictions being placed on the

schedule of the projects by the wet season,

which lasts from July to December, the construc-

tion firm was able deliver each of the structures

on time within a six-month time frame.

Modelling brillianceAs one of South Africa’s leading construction

groups, Stefanutti Stocks is looking to maximise

its shareholder value as it aims to build a sus-

tainable business presence in Africa, as well as

in targeted international markets.

As a multi-disciplinary construction firm, the

company is well positioned to manage a range

of projects of any scale, including large-scale

building construction, mechanical and electrical

power structures, public private partnerships,

services for the mining industry, and road and

earthworks projects.

On its website the company declares:

“We will create a desirable place of work, a

natural home for creativity, enthusiasm and

personal safety.”

Through its projects, such as the three

bridges development undertaken in Sierra

Leone, the company has proved time and time

again that it is able to deliver on time, even if

working under difficult conditions and in re-

mote environments. TAB

www.sTefAnuTTisTOcks.cOm

Page 118: The African Business Journal Dec 2011 - John Pinching

118If your business specialises in one specific area, expertise is the most essential commodity.

Where the streets are paved with goldc.e.l. PAVinG PrODucTs

Page 119: The African Business Journal Dec 2011 - John Pinching

118Where the streets are paved with goldc.e.l. PAVinG PrODucTs

PAVinG

Page 120: The African Business Journal Dec 2011 - John Pinching

120 PAVING � c.e.l. Paving Products

Page 121: The African Business Journal Dec 2011 - John Pinching

121DECEMBER 2011 � The African Business Journal

lAYinG THe fOunDATiOns is an important part of

any business. When you’re in the paving game

it’s something you do on a daily basis—quite liter-

ally. C.E.L. Paving Products places its reputation

beneath the feet of its customers, and is proud to

put the company’s name to each and every one

of its paving stones.

Chip off the old blockThe company began life as a brick and block

masonry manufacturing company, selling all the

associated materials. It was originally formed

as Claud’s Brickworks by Claudino Gorgulho

and his son, Claude.

Gradually, however, Claude realised that, in

order to see off the competition, they needed to

specialise in one area—and do it brilliantly.

“My brother, Claude, started talking to people

in the industry and found a lot of potential in

producing only segmented paving bricks,” ex-

plains Lenny Gorgulho, co-owner of C.E.L. “He

recognised that there was a gap in the market

for specialised paving materials, so ultimately he

decided to forgo the brick and block side of the

business and specialise solely in the manufac-

ture and development of paving bricks.”

The new operation began in 1998 when the

company moved to new premises in Blackheath,

Cape Town, where it now has two plants. With the

fresh objectives established, the company was

able to increase its flexibility by making materi-

als that were out of the norm. Alongside the

generic range the company has released some

truly original varieties into the market.

BlockbustersC.E.L. has also started manufacturing a land-

mark range of retro style materials. More of a

European style brick, it consists of cobbles and

vintage pavers, which are mottled in colour and

fit instantly into the landscape. In addition every

single block is a different shape and colour. Their

nostalgic appearance has proved a massive hit

with South African customers.

“as a result of developing the mould and mix design, we’re the only company that produces the range. It’s made with roving edges and a non-uniform surface, so once it’s laid, it looks old-fashioned and rustic,” enthuses lenny. “When it first came onto the market people found it to be a refreshing and aesthetically beautiful alterative. They loved its uniqueness.”

Encouraged by its popularity the brothers

galvanised the manufacturing process further

Page 122: The African Business Journal Dec 2011 - John Pinching

122 PAVING � c.e.l. Paving Products

by introducing a vast array of different finishes,

textures and colours.

Good foundationsThe company currently employs 70 staff and

every year its efficiency increases, supported

by quicker production, smoother packing and

advances in technology.

C.E.L. also has the advantage of running a

day and a night shift at both plants. This en-

sures that the constant supply of materials to

customers is maintained. The efficiency of the

plants has proved essential since the introduc-

tion of the new, specialised products.

The main drive for this ambitious company is

to keep getting better, remain at the forefront of

paving technology in South Africa and for cus-

tomers to automatically think of C.E.L. products

before anybody else’s.

Pride also comes in the constant attention

to quality, and Lenny believes that this has been

pivotal to C.E.L.’s success story. “We don’t cut

corners with our costing on anything; people rely

on us because of our standards in the industry.

Page 123: The African Business Journal Dec 2011 - John Pinching

123DECEMBER 2011 � The African Business Journal

Our paving has been recognised for being among

the best in the country and we recently won three

national awards as well as the premier award tro-

phy for paving at the 2010 CMA Awards for Excel-

lence competition—an unprecedented feat!”

Solid performanceIn order for C.E.L. to become leaders in the field it

has employed the combined practices of a major

corporation, while retaining the ethos of a family

run business. The brothers remain the faces of

the company—quite literally.

This insistence on taking responsibility has

engendered the sort of trust among customers that

is absolutely priceless in the current market. The

C.E.L. brothers refuse to sacrifice the craft and skill

required to make excellent products and—rather

than put profits before quality—they have let the

company grow organically, at a manageable speed.

“Customer service is the most essential

element of the business and that’s how you can

ensure quality, ensure your product selection and

ensure that the customers are happy—people

appreciate the fact that they can come to us

directly,” Lenny concludes.

It has been this very approach which has

enabled the company to continue to see out the

recession and it looks forward to more prosper-

ous decades as one of the Western Cape’s most

distinctive, entrepreneurial and successful build-

ing material visionaries.

The next few years are sure to provide C.E.L.

with further adventures, as it explores exciting

projects and new horizons; and branches further

into the African market. Paving for the future has

never felt so good. TAB

www.celPAVinG.cO.ZA

Page 124: The African Business Journal Dec 2011 - John Pinching

OJ cOnsTrucTiOnnew kids on the block124

Page 125: The African Business Journal Dec 2011 - John Pinching

OJ cOnsTrucTiOnnew kids on the block

PrOPerTY

Page 126: The African Business Journal Dec 2011 - John Pinching

126 PROPERTY � oJ construction

Keeping it in the family is always a good platform for a business. The two brothers that run oJ construction have found it the perfect foundation for their booming property development business.

Ockie AnD AnDre Oosthuizen are a pair of ambi-

tious brothers who are rapidly cementing a repu-

tation for the creation of spectacular high-end

buildings in Namibia. Running a young company

has allowed them to take stock of the property

market and deliver fresh ideas, high standards

and, above all, incredible properties.

Page 127: The African Business Journal Dec 2011 - John Pinching

127DECEMBER 2011 � The African Business Journal

Page 128: The African Business Journal Dec 2011 - John Pinching

128 PROPERTY � oJ construction

Creative Intelligence...

Solid groundOJ Construction began its journey when founder

Ockie left his previous property developing com-

pany to explore his vision of producing upmarket

housing and superior quality structures.

Shortly after, he was joined at the company’s

helm by brother Andre, who shares his enthusiasm

for changing the Namibian landscape, and even

contributed the design for OJ Construction’s eye-

catching logo.

Keeping it in the family has certainly proved

to be a wise decision and Ockie has never regret-

ted leaving the safety of his previous job.

“I worked for a big company with massive

construction projects where, due to the scale,

there was often a bit of quality left out. I wanted

to start a smaller company where attention to

detail and a high standard of finishing were guar-

anteed,” says Ockie.

Driven by this admirable manifesto, Ockie

began taking on projects in 2006. Immediately

the company started building and renovation

work, while also overseeing a couple of small

developments. These assignments involved four

town houses and several small office blocks, and

proved to be a great way of establishing OJ Con-

struction as a front runner in creating imagina-

tive and practical structures.

Page 129: The African Business Journal Dec 2011 - John Pinching

129DECEMBER 2011 � The African Business Journal

Email: [email protected] • Lafrenz Industria,Tel: 061-261 810/215 752 • Fax: 061-261 811

MANUFACTURER IN CONCRETE AND TERRAZZO PRODUCTS

Visit our showroom to view a wide variety of:• Winbloks & Ornament Stone• Concrete Paving & Stepping Stone• Lintels• Floor mixes• Flower Pots• Channels• Pillar Heads & Wall Coping• Umbrella Stand• Pallisade Fencing

www.wibeku.com

After impressing in those vital early stages

the company has expanded considerably, dou-

bling its turnover every year.

“By the fourth year we were up to 40-50

million and we’re now standing at about 100

million for this year,” enthused Ockie. “Next year

it’s going to probably increase to 200. Although

we’re expanding nicely, I want to stay within the

borders of Namibia, ensuring we can keep reach-

ing the same high standards.”

Stairway to heavenThe company mainly build in Windhoek and, at the

time of writing, it is developing an exciting 24 unit

complex. The structure is comprised of ‘mixed use’

units which are cleverly split into bachelor flats, one

bedroom flats and office space.

OJ Construction buildings are certainly adding

some genuine class to the Namibian landscape. “In

Namibia there are a lot of high rise buildings going

up and many of them are mixed use. We’re doing

two projects now and next year we’ve got at least

another three of the same type,” explains Ockie.

One of the company’s other prestigious

contracts is with a big development group part-

ner, currently responsible for constructing the

biggest commercial development in Namibia—a

huge multiplex shopping centre. Surrounding the

Page 130: The African Business Journal Dec 2011 - John Pinching

130 PROPERTY � oJ construction

structure will be a number of residential flats, du-

plex houses and warehouses for commercial use,

which OJ Construction will be responsible for.

“It’s a whole little town on its own, built in a

circle and therefore spread out from the shop-

ping centre. The retail structure gradually gives

way to office space and beyond that, large resi-

dential units. I think it’s a tremendously exciting

new model for Windhoek and believe the local

population will really benefit from it,” says Ockie.

Fixtures and fittingsThe company likes to maintain a versatile work-

force, which is formed according to the require-

ments of each individual project. Typically, OJ

Construction use contractors whose skills the

company builds up, particularly on the manage-

ment side. Refreshingly, it also advises staff

about organise their finances.

When it comes to working practices Ockie likes

to let the experts within his company have the free-

dom to get on with exactly what they’re good at.

“I wouldn’t be able to tell a guy how to plaster

a wall; I’m in the management side of business

and it’s my job to employ highly skilled contrac-

tors who can get on with a job and do it brilliantly.

Most of the time the company employ some-

where in the region of 500-600 people.”

Page 131: The African Business Journal Dec 2011 - John Pinching

131DECEMBER 2011 � The African Business Journal

It’s just as well that the business can rely on

so many skilled craftsmen, in what has certainly

been the most industrious year in OJ Construc-

tion’s history.

In addition to its activities in the private sec-

tor, the company is involved in some significant

industrial development projects with the gov-

ernment. One of which is in partnership with a

Namibian development corporation, whose main

vision is to create work for the construction in-

dustry and people of Namibia. This is designed to

ensure that smaller companies can open up their

businesses in centres of industry.

One of these centres is a garment factory,

Page 132: The African Business Journal Dec 2011 - John Pinching

132 PROPERTY � oJ construction

Page 133: The African Business Journal Dec 2011 - John Pinching

133DECEMBER 2011 � The African Business Journal

which OJ Construction has recently completed.

The self-contained modern premises encompass

each and every process in the retail cycle, from

the manufacture of clothing and accessories, to

selling the items in the factory shop.

As a company with such a futuristic philoso-

phy it’s only natural that OJ Construction also

maintains a photographic record of its achieve-

ments on Facebook.

With an even bigger year in 2012 to look

forward to the brothers are certainly building an

impressive legacy—brick by brick. TAB

Page 134: The African Business Journal Dec 2011 - John Pinching

134JOllY GOOD sPOrTs

Page 135: The African Business Journal Dec 2011 - John Pinching

134

sPOrTs GeAr

JOllY GOOD sPOrTs TFG Sports

Page 136: The African Business Journal Dec 2011 - John Pinching

136 SPORTS GEAR � TFG Sports

In a world where sport covers such a multitude disciplines, demographics and even desires, there is one company that prides itself on catering for all tastes.

Page 137: The African Business Journal Dec 2011 - John Pinching

137DECEMBER 2011 � The African Business Journal

Page 138: The African Business Journal Dec 2011 - John Pinching

138 SPORTS GEAR � TFG Sports

THese DAYs YOur reason for visiting a sports

store could be anything from choosing an im-

plausibly white pair of trainers—which you intend

to go night clubbing in—to sizing up the latest

range of aero-dynamic football. Whether you’re a

dedicated follower of fashion or tenacious rugby

star, who likes nothing more than to get caked in

mud, it helps if your sports gear provider knows

what they’re doing. With 30 years’ experience

and 325 stores nationwide, TFG Sports really is

the best in the business.

Top of the leagueIn 1982 Jimmy Connors swept his nemesis

John McEnroe aside in Wimbledon’s battle of

the brats, Alex ‘Hurricane’ Higgins swaggered

his way to the World Snooker Championship

and professional rugby consisted of downing

18 pints in the clubhouse. It also happened to

be the year that TFG Sports began its flagship

brand ‘Totalsports’ which now dominates the in-

dustry with 175 stores, in malls and high streets

throughout South Africa.

Ten years later Sportscene followed and

now reaches millions more customers with 124

stores. Duesouth—which specifically targets the

outdoor market—was launched in 2004 and has

31 locations so far.

is all in

Adidas would like to thank The Foschini Group - Sports Division for their loyal support

adi fosch thank you ad.indd 1 2011/11/03 3:34 PM

Page 139: The African Business Journal Dec 2011 - John Pinching

139DECEMBER 2011 � The African Business Journal

is all in

Adidas would like to thank The Foschini Group - Sports Division for their loyal support

adi fosch thank you ad.indd 1 2011/11/03 3:34 PM

Page 140: The African Business Journal Dec 2011 - John Pinching

140 SPORTS GEAR � TFG Sports

Every year the brands have expanded and

Marketing Director Fernando Ventura believes

that knowing its customers and maintaining

momentum has been the key.

“We’re growing at a rapid pace, in fact,

for the last two years we’ve launched 40-50

stores a year,” he enthuses. “We have three

very well differentiated brands, which are

well-positioned in the marketplace of each

respective sector.”

South Africa is blessed with virtually

uninterrupted sunshine and, as a sports-mad

nation, the great outdoors has proved very

useful indeed, for TFG’s Sports’ ethos. The vast

open areas enable most of the population to

enjoy easy access to football, running, fitness

and rugby.

The country itself, therefore, provides the

perfect platform for its broad assortment of high

quality sportswear, footwear and equipment to

cater for the wide range of customer needs.

The three degreesTotalsports is the company’s premier sports

merchandise destination offering a veritable

cornucopia of top brands such as Nike, Adidas,

Page 141: The African Business Journal Dec 2011 - John Pinching

141DECEMBER 2011 � The African Business Journal

Asics and Puma. As well as offering an impressive

array of performance attire, the stores are well

stocked with the very latest in sport-inspired

fashion wear, which incorporates a house brand

called ‘fusion’. The store also supplies the most

up to date replica jerseys of a whole host of soccer,

rugby and cricket teams.

“In this day and age the fanatic supporter will see their team’s colours as a fashion statement,” explains Ventura.

In contrast Sportscene is more of an urban

sports-lifestyle brand, aimed at young people in the

16-24 age group. The shops hold extensive lines of

branded clothing, footwear and accessories; all with

the necessary dose of ‘street cred’, which is such

an essential part of youth culture in South Africa.

“These cutting edge stores have a particu-

larly strong focus on footwear,” adds Ventura.

“We call ourselves ‘the kings of sneaker-wear’,

so it’s very much a sneaker kind of mentality,

and therefore positioned quite differently.”

The company’s third brand caters for the

slightly older consumer—customers in their

Page 142: The African Business Journal Dec 2011 - John Pinching

142 SPORTS GEAR � TFG Sports

Page 143: The African Business Journal Dec 2011 - John Pinching

143DECEMBER 2011 � The African Business Journal

30s, 40s, 50s and beyond. Its hosts a mainly

outdoor range, which includes modern high-

tech equipment and clothing for the more

radical sportsperson.

“This is for guys who go out for the day and enjoy exciting activities, hiking, mountain biking and extreme sports,” says Ventura.

“From a marketing point of view, we have three

very different businesses, so we’ve been able to

negotiate the downturn very well,” he concludes.

Setting the paceTFG still has big plans to expand its three popular

brands, with stores opening at the same rate as

the last few years. The company recognises that,

as South Africa continues to encourage its wide-

spread urban developments, there will be count-

less opportunities to bring the facilities to even

more customers.

Meanwhile, the company—which already

has a presence in Namibia and Botswana—

is keen to expand its interests in the rest

of Africa with planned branches in Zambia,

Nigeria and Mozambique.

Page 144: The African Business Journal Dec 2011 - John Pinching

144 SPORTS GEAR � TFG Sports

Page 145: The African Business Journal Dec 2011 - John Pinching

145DECEMBER 2011 � The African Business Journal

With such an instantly recognisable set of

brands TFG Sports’, empire is certainly a far cry

from the average sports store of thirty years ago.

“The stores have become more sophisticated and we’re very, very focused on the delivery of modern sports outlets. We think our retail stores certainly do stand up to scrutiny anywhere in the world and we’re proud of the standard we set.”

As the sporting landscape continues to

broaden and more people wear tracksuits to

the office, the three brands will keep moving

with the times and bringing the finest regalia to

neighbourhoods all over Africa. With such a huge

following, it’s reassuring to know that the ball is

firmly in TFG Sports’ court. TAB

www.TfG.cO.ZA

Page 146: The African Business Journal Dec 2011 - John Pinching

146 MINING � Evraz Highveld Steel & Vanadium Limited

evraz highveld Steel & Vanadium limited

mADe Of sTeel

146

Page 147: The African Business Journal Dec 2011 - John Pinching

147DECEMBER 2011 � The African Business Journal

mADe Of sTeel

146

mininG

Page 148: The African Business Journal Dec 2011 - John Pinching

148 MINING � Evraz Highveld Steel & Vanadium Limited

evraz highveld Steel and Vanadium limited (evraz highveld) has been making its mark on the South african economy as the country’s leading steel and vanadium slag producer, and despite working in a difficult global economic environment the company has continued to embrace a range of sustainable and social initiatives.

Page 149: The African Business Journal Dec 2011 - John Pinching

149DECEMBER 2011 � The African Business Journal

Page 150: The African Business Journal Dec 2011 - John Pinching

150 MINING � Evraz Highveld Steel & Vanadium Limited

wHen eVrAZ HiGHVelD—fOrmerlY known as

Highveld Steel and Vanadim Corporation Limit-

ed—came on the market in 2007, Evraz snapped

up the entity, marking an exciting new chapter in

South African steel history.

Evraz purchased 87 per cent of the firm that

year and soon changed its name to Evraz High-

veld Steel and Vanadium Limited as part of a

brief rebranding exercise. Evraz Highveld director

and chief executive officer Michael Dennis Garcia

says that the company changed its colours from

the old blue “to orange, yellow and red to symbol-

ise the steel making process.”

As South Africa’s leading producer of flat

products, structural steel and vanadium slag,

the company has been keeping a close eye on

global market trends to ensure its production

remains in demand.

Page 151: The African Business Journal Dec 2011 - John Pinching

151DECEMBER 2011 � The African Business Journal

“Demand has been stable-to-soft, and con-

sidering the concern that Europe and America

could enter a full recession, growth in South

Africa has not been that impressive, thereby leav-

ing the general outlook for both vanadium and

steel guarded,” says Garcia.

Despite the uncertainty surrounding the

global markets, Evraz Highveld’s most recent

set of results, released in August, saw the steel

producer swinging back to profitability following

tougher times in 2010.

“This reflected the moderate strengthening of

the domestic steel market, both in terms of pric-

ing and demand, and reflected better operations

within the company,” Garcia remarks.

“In South africa there is a higher growth rate than in most Western countries, but it’s still not as robust as in the brIc countries.

“We sit somewhere in the middle and while

we expect prospective growth it won’t be the

same as you will see in India, China and Brazil.”

Supporting social endeavoursAs a committed part of the local economy,

Evraz Highveld is giving back to the community

through a series of forums and educational

programmes. One such endeavour is providing

assistance and support to local schools and

healthcare facilities through the Evraz Highveld

eMalahleni Community Forum, which runs its

social economic development projects.

The company also operates a skills develop-

ment programme through a highly-regarded inter-

nal training centre, which trains its own employ-

ees as well as external applicants.

Page 152: The African Business Journal Dec 2011 - John Pinching

152 MINING � Evraz Highveld Steel & Vanadium Limited

B&S ARE PROUD TO BE A VALUABLE PARTNER TO EVRAZ HIGHVELD STEEL AND VANADIUM LIMITED, SINCE 1990.

B&S Specialises in:

• Metal Recovery from Slag• Hot Slag Processing• General Materials Handling• Value Recovery from Waste• Opencast Mining

WE PROVIDE SPECIALIST MATERIALS HANDLINGSOLUTIONS ON CONTRACT, FOR HIRE AND JUST IN TIME …

Contact Us on [email protected] + 27 – (0) 13 – 659 7061 / 62

Rapid Freight's mission is to excel as a leading company in an ever-changing transport environment by providing exceptional transport and logistics services to our clients.

We are specialists in superlink flatbeds and tautliners and triaxle flatbeds. We do normal and abnormal transport by road nationally to all destinations in South Africa and also to all countries in sub Saharan Africa. Every industry has a leader so contact us to find why we are the preferred transport supplier to many blue chip companies.

TEL : +27 861 272743 | FAX : +27 21 559 8841www.rapidfreight.co.za

A LEADER IN THE INDUSTRYProudly appointed transport supplier to Evraz Highveld Steel and Vanadium Limited

Page 153: The African Business Journal Dec 2011 - John Pinching

153DECEMBER 2011 � The African Business Journal

In regards to enterprise development, the

team has identified a selection of suppliers from

within its supply chain who it is looking to work

with over the coming year as part of an enter-

prise development strategy, aimed at helping to

set up businesses and long-term partnerships.

“The aim of this project is to promote enter-

prise development throughout our supply chain,

which we will then further develop through a

phased approach,” explains Garcia.

Evraz Highveld was also recently awarded a

Level 5 Broad-Based Black Economic Empower-

ment (B-BBEE) accreditation.

“It is one of the key strategies that the South african government has in place to ensure that previously disadvantaged populations of South africans who were not fully able to participate in the economy during the apartheid years, are able to participate,” explains Garcia.

“Each business that wants to conduct busi-

ness with government is required to have a B-

BBEE rating,” he notes. “The higher your rating the

more favourable your position is in terms of being

able to compete for government tenders.

“It’s an advantage to us in the market place

to have a strong rating; it affects not just our ten-

ders but also the business opportunities of our

customers,” he adds.

Evraz Highveld is also focusing on its environ-

mental position and has in place an environmen-

tal strategy that consists of three key components.

“We have a lot of initiatives in place to improve

our environmental standing,” confirms Garcia.

“These include full compliance with all environ-

mental legislation, developing an environmental

footprint that enables growth and meeting the

conservation expectations of our stakeholders.”

Improving infrastructure and efficiencyNot content with supporting community initia-

tives and remaining ever mindful of its operat-

ing environment, Evraz Highveld is also exam-

ining different methods to greatly reduce its

consumption of electrical energy.

“South Africa is in dire straight when it

comes to electrical energy,” remarks Garcia. “The

country has implemented a 25 per cent year-on-

year electricity price increase and it is therefore

becoming a big input cost for us and is putting

our business at significant risk.

“Therefore, we are examining new reduction

technologies in our iron-making process that

will greatly reduce the electrical intensity of our

steal making.”

Page 154: The African Business Journal Dec 2011 - John Pinching

154 MINING � Evraz Highveld Steel & Vanadium Limited

As a result the company is opting to move

forward with plans to install a cogeneration

plant, and recently completed a pre-feasibility

study on a facility that would allow it to cre-

ate power to meet up to 50 per cent of its own

electricity requirement.

“This would take us off of the electrical grid

to a great extent and next year we will be under-

taking an official feasibility study that will help

us nail down the reduction technology we use,”

explains Garcia, adding that the team hopes

this project will come to fruition within the next

three to four years.

“The Evraz Way”According to Garcia, the steel producer has been

employing what it terms “The Evraz Way” in order

to improve efficiency across the business. Its com-

mitments in terms of social, environmental and en-

ergy efficient realms are clear, and this is the ethos

that supports development across the board.

“We kicked off the programme earlier this

year and we have several initiatives going on

throughout the company where we have identified

waste and redesigned our processes to greatly

reduce wastage,” he explains.

“It is really about applying lean

FERRET COAL KENDAL

Ferret coal Kendal is a coal producer and supplier of B-grade coal to the local domestic market(including leading Paper, Steel and Related producers) as well as to Power Utilities, with Operations in the Witbank area of South Africa, approximately 100 kilometers from Johannesburg.

Products produced:• Large Nuts (45x75mm) • Small Nuts (28x45mm) • Peas (10x28mm) • Duff (2x10mm)

Ferret Coal Kendal is part of the GMR Group, which is a Bangalore headquartered global infrastructure major with interests in the Airports, Energy, Highways and Urban infrastructure.(visit website WWW.GMRGROUP.in for details)

Focused on reliable and quality support to the industry

homelandenergygroup.com

Contact Corne Britz:T: (+27)13 656 1060/37 | F: (+27)13 656 1086

Page 155: The African Business Journal Dec 2011 - John Pinching

155DECEMBER 2011 � The African Business Journal

manufacturing principles and reducing all forms

of waste across all business processes in both

manufacturing and administrative processes.”

Following the lead of the global economic

downturn, the company is looking to use the

coming months to consolidate its business

interests. With demand lower than capacity

across South Africa’s steelmaking industries,

Evraz Highveld has opted to take a measured,

strategic approach in the coming months and

years. Its conservative stance is refreshing, and

in placing greater focus on infrastructural im-

provements, environmental commitments and

social endeavours, it is also an exemplary enter-

prise when it comes to responsible business for

the steelmaking sector. TAB

www.HiGHVelDsTeel.cO.ZA

We are proud of 40 years’ service to Highveld and salute Evraz and the new skipper, Mike Garcia.

FABRICATORS OF WATER-COOLED AND OTHER CRITICAL FURNACE SPARES.

[email protected] | Tel: 011 827 0325

Page 156: The African Business Journal Dec 2011 - John Pinching

DesmOnD equiPmenTdezzi-nated driver156

Page 157: The African Business Journal Dec 2011 - John Pinching

DesmOnD equiPmenTdezzi-nated driver

mininG

Page 158: The African Business Journal Dec 2011 - John Pinching

158 MINING � desmond equipment

Page 159: The African Business Journal Dec 2011 - John Pinching

159DECEMBER 2011 � The African Business Journal

From its humble beginnings desmond equipment has developed into an intercontinental success story and, with its dezzi brand of transport equipment, is now aiding the development of businesses across africa, as it provides a healthy mixture of friendly service and quality machinery.

Page 160: The African Business Journal Dec 2011 - John Pinching

160 MINING � desmond equipment

in suPPlYinG HeAVY industry transport machin-

ery to the mining, timber, sugar, harbour and

construction sectors, Desmond Equipment has

become a key player for many businesses operat-

ing across Africa.

From tractors and haulers to loaders and

dump trucks, the Dezzi range of equipment

has been busy keeping businesses moving

since 1995.

Des Gutzeit, the company’s managing direc-

tor, set up the family-owned transport company

after completing a two-year apprenticeship with a

Ford tractor dealership more than 30 years ago.

Gutzeit borrowed the sum of R300 to buy his first

truck and after 30 years of trading is head of a

company that is currently blossoming.

“When I was 20 years old I heard that the

local railway authority was looking for trucks

to hire, so I went to the station master and he

asked me to bring a lot of trucks,” says Gutzeit. “I

only had one truck, but I told him I had three.

“I said to the station master that two of the

trucks were busy and he told me to bring them

whenever I could. So I started off with the one

truck and I worked there for about four months

saving enough money to buy another truck.

“I told him the second truck was on its way,

and he asked me to bring that one as well,” he

Page 161: The African Business Journal Dec 2011 - John Pinching

161DECEMBER 2011 � The African Business Journal

The Right Technology Matters

& The Right Partnerships MatterCummins South Africa (Pty) Ltd provides sales, service and support to Original Equipment Manufacturers, Distributors, Dealers and Customers in the Southern African region and is proud to be associated with Desmond Equipment.

Our Engine Business Unit will assist you in specifying engines with application engineering service for repower projects with different support models, from branch level service, repairs and supply of parts to maintenance and full service solutions.

Today and in the future, Cummins will continue to deliver power uniquely matched and integrated in every construction mechanisation, through advanced engineering. Together we make people's lives better by unleashing the power of Cummins.

Cummins South Africa Contact:

Cell No: +27

www.cummins.com/southafrica

+27 11 421 9906 Tel No: Lionel Smith Cell No: +27 82 331 2854Ettiene Holtzhausen 73 702 6799

Page 162: The African Business Journal Dec 2011 - John Pinching

162 MINING � desmond equipment

• Dezmond equipment are using Dunair in Earth moving applications.• Dunair manaufacture a range of vehicle aircon kits for almost all makes and models that do not come factory fitted with aircon • A dealer network of more than 200 dealers throughout South Africa.• A range of replacement aircon parts for all popular makes and models sold in South Africa• Dunair manufacture a range of Bus roof top aircon systems with a range of large aircon compressors to suite.• Seeking partnerships in Africa.

Dunair is a division of Smiths Manufacturing part of the Matair groupWebsite: www.dunair.co.za; Contact: [email protected]; Tel: 0800 203 027/8

continues. “From there I saved enough money

to buy a third truck and that was actually from

where I started the business from.”

Within a year of buying his third truck Gutzeit

had invested in a front-end loader and began

transporting sand and gravel, while also carting

bricks for his father.

Desmond in demandHaving set up a fully-fledged transport business,

Gutzeit continued to guide the company along

similar lines for its first 10 years, before entering

the ready-mix and brick manufacturing industry.

In 1981, Gutzeit sold the ready-mix and brick

manufacturing side of the business, reinvesting

the money into buying new transport machines.

By 1994, the company had decided to build

its own machines and in 1995 built its first front-

end loader.

“Today we build 17 different models, in-

cluding seven different-sized dump trucks, five

different-sized front-end loaders, tractors for

the industrial market, cane loading equipment,

timber trucks, and a range of dump trucks for the

mining sector,” says Gutzeit.

Through the success of its Dezzi brand of ma-

chinery, Desmond Equipment has built a strong

and loyal customer base across the continent.

Page 163: The African Business Journal Dec 2011 - John Pinching

163DECEMBER 2011 � The African Business Journal

“We have a lot of machines in Mozambique,

Zambia and Zimbabwe, including a lot of ma-

chines in the sugar cane industry” Gutzeit notes.

“We even design our machines to suit the site

conditions and needs of our customers.

“There’ll always be a place in the market for

good machines at the right price,” he says. “But

Africa is not an easy market to work in — espe-

cially if you’re based in the middle of nowhere,

2,000 to 3,000 kilometres away from service

departments.”

Today, Desmond Equipment has a factory on

the southern coast of South Africa, a one-hour

drive south of Durban and manufactures be-

tween 100 and 200 machines per annum.

“We have a team of more than 100 in the fac-

tory in South Africa and we have a dealer network

that encompasses Cape Town, Port Elizabeth and

Durban, as well as our own outlet and marketing

offices in Johannesburg,” Gutzeit notes.

Taking on the competitionWorking across a range of sectors, from con-

struction and mining, to harbours, sugar and tim-

ber, can lead to the demand for the company’s

machines changing on a monthly basis.

“Some months we’ll sell a lot of machines

to the mining industry and then in other months

Page 164: The African Business Journal Dec 2011 - John Pinching

164 MINING � desmond equipment

we’ll sell a lot of machines into the sugar cane

industry,” says Gutzeit.

With an influx of manufacturers from East

Asia entering the African marketplace, the in-

dustry has changed enormously in the past few

years, but Desmond Equipment has managed to

remain as relevant as ever by supplying equip-

ment designed to work in tough conditions, that

is easy to repair and is operationally low cost.

“Last year wasn’t the best year for South

Africa financially, and I think the rest of the world

as well, but we managed to remain very busy as

the sugar industry was booming and always has

been,” remarks Gutzeit.

The company’s philosophy is taken from a

saying Gutzeit’s father used — ‘Give a guy a good

deal and he always comes back, but burn him

once and you never see him again’.

“That’s a philosophy we keep to and often our

customers become our friends,” remarks Gutzeit.

With his own aircraft and landing strip Gutzeit

is even able to use his pair of wings to fly and de-

liver spare parts to customers across Africa.

“We fetch customers from wherever they

want to be picked up and we fly them to the fac-

tory and give them a tour of our facilities and

serve them lunch, before flying them back in the

evening,” he says. “It’s nice to get the customers

Page 165: The African Business Journal Dec 2011 - John Pinching

165DECEMBER 2011 � The African Business Journal

here to show them the factory and do business.”

By always being on hand to help its custom-

ers, and with an honest ethos grounded in the

company’s humble beginnings, Desmond Equip-

ment and its Dezzi brand is busy writing the next

chapter of its fascinating story by developing its

reach across the African continent. TAB

Page 166: The African Business Journal Dec 2011 - John Pinching

THe lime Of THe cenTurYSa lime & Gypsum

166

Page 167: The African Business Journal Dec 2011 - John Pinching

mininG

THe lime Of THe cenTurYSa lime & Gypsum

166

Page 168: The African Business Journal Dec 2011 - John Pinching

168 MINING � Sa lime & Gypsum

Page 169: The African Business Journal Dec 2011 - John Pinching

169DECEMBER 2011 � The African Business Journal

From its base in South africa, the country’s leading agri lime company is looking to expand its interests in markets across the continent. TABJ looks at the success of Sa lime & Gypsum and its subsidiary africa lime Products to find out how it plans to build a continental empire.

Page 170: The African Business Journal Dec 2011 - John Pinching

170 MINING � Sa lime & Gypsum

wiTH VAriOus lime and gypsum production sites

across South Africa, SA Lime & Gypsum is lead-

ing the industry across Africa’s largest economy.

The company started trading in 2003 and,

with its focus on agricultural lime and gypsum, has

grown into the biggest agri lime company in Africa.

“We are the only nationally-represented lime

company in SA and also the biggest in Africa,”

declares director Hendrik Heÿl. “The company

originally started in Cape Town and in 2004 be-

gan expanding across the rest of South Africa.

“We now have an agent network totalling

150 across the country and deliver products

from logistically well-situated sources in every

province,” he adds.

SA Lime & Gypsum, the brainchild of manag-

ing director Carl Taljaard, was founded with the

help of co-owner Hendrik Heÿl, and quickly began

Page 171: The African Business Journal Dec 2011 - John Pinching

171DECEMBER 2011 � The African Business Journal

to climb to the top of the ladder to ultimately be-

come Africa’s biggest agricultural lime company.

From industrial gypsum to neutralime,

SA Lime & Gypsum supplies a variety of lime-

based products.

The company’s current product portfolio and

applications includes roadlime, an unparalleled

aid in the modification and stabilisation of soil

beneath road and similar construction projects,

and quicklime, which is used in a wide variety of

environmental and industrial applications.

It also trades in waste treatment lime for

wastewater treatment plants that is used as the

chemical for correcting the pH balance of acidic

waters, precipitating heavy metals, phosphates

and its flocculating action.

Africa Lime Products, a subsidiary of SA Lime

& Gypsum Group, was been established in 2008

and began trading in 2009 to act as the compa-

ny’s vehicle to direct its expansion plans across

the African continent.

The subsidiary, which started trading in

2009, specialises in the production and market-

ing of the full range of value-added calcium and

magnesium products.

The company’s core business revolves

around the chemically-driven lime cycle, and its

key product, arsenal, is sourced, processed and

distributed from strategic locations in close vicin-

ity to its key markets.

“The formation of this company was a natu-

ral progression for our group, following the rich

history of SA Lime & Gypsum, a market leader

within the agri lime industry,” says Heÿl.

Competitive edgeThe key competitive advantage SA Lime and Gyp-

sum has is that its business strategy lies in the

Page 172: The African Business Journal Dec 2011 - John Pinching

172 MINING � Sa lime & Gypsum

synergy between the agricultural and industrial

lime markets, notes Heÿl.

“Most waste materials from the company’s

industrial plants and other industrial sources, to

which have exclusive access, are easily marketed

and sold into the agricultural market,” he remarks.

“As far as forward integration is concerned,

the company has been able to finance all capi-

tal requirements to date with internal funds,”

he adds. “These include a lime hydration plant

along South Africa’s western coast and a vari-

ety of mobile minerals processing and earth-

moving modules.

“Various exciting opportunities currently exist

in the lime industry, both in South Africa and on

the rest of the continent.”

With stable economic and political conditions

and its rich deposits of copper and cobalt ore,

the company has selected Zambia as the plat-

form for its future growth strategy into Africa and

began trading in Zambia earlier this year.

Having registered a wholly-owned subsidiary

in Zambia and obtained the investment license

required to start operations within the country, the

company has appointed a team to look after its

interests in Zambia and signed contracts with sup-

pliers of limestone to ensure raw material security.

“In line with the company’s proven busi-

ness model, the location of these sources has

been strategically selected close key markets

to provide a competitive advantage through the

reduction or elimination high-transport costs,”

remarks Heÿl.

Page 173: The African Business Journal Dec 2011 - John Pinching

173DECEMBER 2011 � The African Business Journal

“In January 2012 we will see the incorpora-

tion of Africa Lime Products (Mozambique) and

we are currently busy finalising the takeover of a

mine in southern Mozambique, as well as sort-

ing out plans to establish new mines in other

locations in Mozambique,” he adds.

Lime is fineHeÿl says that the lime industry hasn’t been

overly affected by the economic turndown that

has caused havoc to so many other industries in

the past few years.

“The agri business was not affected at all

and we have maintained 35 per cent growth

since the start of the recession,” he notes. “The

industrial business also expanded dramatically

during these years and we are happy to have a

growing market share during tough times.

“Our planning in the next five years is aggres-

sively towards Africa and we are already investi-

gating opportunities in various new locations,”

he remarks. “Growth in sales and profit has been

exceptional and the firm supply contracts we

have in place put the company in a very healthy

financial position.”

From relatively healthy positions, SA Gypsum

& Lime and Africa Lime Products are both look-

ing to develop an expansion plan that will put the

group on a platform to become a global player

within the resource sector. TAB

www.sAkG.cO.ZA

Page 174: The African Business Journal Dec 2011 - John Pinching

The new logistics helps your business grow.It gives a small business as much power as a global chain. UPS gives you 400,000 dedicated staff, the world’s largest transportation network and an investment of millions of dollars in technology every year. But not everything’s bigger. There’s less form filling, less paperwork, less fuss. So you can spend time on what you know best.

© 2010 United Parcel Service of America, Inc. UPS, the UPS brandmark and the colour brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.

Sign up today to take advantage of UPS shipping discounts. Visit www.discountpartnerships.venngo.net and use promo code Canadian Business. For more information on UPS products and services, please visit UPS.com® or call 1-800-Pick-UPS®.

UPS_CBJ_FP_ad.indd 1 12/10/10 3:02 PM