ITALIAN-SOUTH AFRICAN CHAMBER OF TRADE AND INDUSTRIES

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Page 1

Italy’s footprint in South Africa

Culturally, Italy is one of the world’s great nations. In opera it towers over its European counterparts thanks

to composers such as Verdi, Donizetti and Puccini. Their work has infl uenced scores of singers and composers through the years, ranging from Benito Gigli, Tito Gobbi, Enrico Caruso and Anna Maria Alberghetti right through to Luciano Pavarotti and Andrea Bocelli. Thousands of tourists still fl ock to Italy’s top opera houses such as La Scala in Milan, which are among the world’s most illustrious. Although the fi rst opera house was built in Venice in 1637, the very fi rst opera, Dafne, is said to have been developed around the time of Lorenzo de Medici, in Florence in 1597, and was performed at the Pitti Palace by Jacopo Peri and Ottavio Rinucci.

The Renaissance truly was a turning point in history, and the social values that devel-oped around that time are still evident in every aspect of Italian society, whether in Italy itself or abroad. Interestingly, there are now more Italians living overseas than in Italy. In South Africa (SA) there are an esti-mated 80,000 people of Italian descent and

many businesses founded in SA by Italians are built on the principles of family, ethics and taking pride in one’s work.

Like SA, this narrow peninsula has seen political upheavals and imbalances of power. There are still very distinct cultural divides within Italy, and dialects are spoken in dif-ferent regions. Yet in spite of the political instability the Italians have endured over the years, they have managed to hold on to what they value, and this includes family tradition and ethical codes of conduct in business.

Of course the Renaissance was by no means the end of Italy’s rise to world prominence in various fi elds. In the 60 years of being a republic, the Italians have managed to remain passionate in every aspect of their daily lives. Attention to detail and an innate sense of beauty can be seen in every major and minor part of life–right down to the wrapping of a bunch of fl owers bought at a roadside stall. In this way the culture is all-pervasive.

Viniculturally, Italy has its own story, too. The fi rst offi cial wine-producing region in Europe is thought to have been Chianti, in 1716. Italian wines are revered around the

Italy is the land of verdant Tuscan hills, opera, good food, Venetian canals and the Vatican state. This is the country of Da Vinci, Raphael and Michelangelo–giants of the Renaissance whose legacy lives on in the Italy of today. The Italian people have every right to be proud, not only of their acclaimed historical heritage, but also of their continuing contribution to the modern world.

Message from the Italian ambassador to South Africa, His Excellency Alessandro Cèvese

Having already served in South Africa between 1992 and 1996,

when I was posted here as counsellor at the Embassy of Italy in Pretoria, I am already familiar with a country which I have learned to appreciate and admire for its successful transition to democracy and for its many achievements since then. My previous experience also gave me the chance to establish strong links with the locally-based Italian business community, whose contribution to the economic and social growth of South Africa has been consis-tently relevant. I do therefore believe that this same community can play a key role in further expanding the relations between Italy and South Africa in many different areas. Indeed, this advertising feature in TIME magazine can be instrumental in encouraging Italian businesses to look at the many opportunities for investment in South Africa, also bearing in mind the great challenge represented by the organi-sation of the 2010 FIFA World Cup.

A list of priority sectors may not be exhaustive, yet I would like to stress the

(continued on page 4)

Italy’s footprint in South AfricaItaly’s footprint in South AfricaItaly’s footprint

Italy is the land of verdant Tuscan hills, opera, good food, Venetian canals and

Italy’s footprint in South Africa

Page 6 HIGHLIGHTS OF THE ITALIAN-SOUTH AFRICAN ENGAGEMENT

TRADE & INDUSTRYSPECIAL ADVERTISING SECTION

Italy was the fi rst EU member to sign an economic agreement with South Africa. The ties be-tween the two countries are continually being strengthened: in 2002 Italy’s President Carlo Azeglio Ciampi was the fi rst-

Growing legal legacy

Lawyer Maurizio Mariano, director of Johannesburg law fi rm Biccari Bollo Mariano Inc, is a South African Italian who in a short

space of time has left signifi cant footprints in both Italy and SA. His efforts to promote the wellbeing of his compatriots have received the highest recognition; he was the fi rst person ever from SA to receive the Grande Offi ciale, order of OSSI, from the Italian government. This award is made to individuals for community work on behalf of Italian communities outside Italy and rebuilding Italy after WW2. Mariano says that for Italian immigrants the concept of skills transfer is nothing new: the majority of Italians who have settled in SA have brought skills with them.

“As for the future,” he says, “we are optimistic. We are aware of the problems, and we want to be part of shaping the future of Africa. Italians are proud of what they can contribute, there is an age-old Italian saying: Il lavoro nobilità, which means that work makes you honourable. We believe that work is life, and life is to be shared. Personally, I believe working purely for personal gain is futile and dishonourable. The real reward of one’s work lies in the hearts of those who are able to share in what you build.” This sentiment is what drives Mariano and his fi rm: to achieve on behalf of others.

On a lighter note, Mariano plays a pivotal role in the organisation of the Miss Italy SA competition each year, and is very active as a member of the Italian Club and Italdev. The Miss Italy SA pageant forms part of the global Miss Italy in the World competition, which is held in Italy every year. Mariano is also a founding member of the HIP (Hellenic, Italian, Portuguese) Alliance.

Mariano cites poverty alleviation and upliftment as prime concerns in South Africa. As he is a lawyer with a Master’s Degree in international law, it’s no surprise that the ANC (of which he is an active member) jumped at the chance to involve him in two crucial policy working groups. Thus he is now at the forefront of impending changes regarding the transformation of the courts and the Constitution amendments.

Mariano, who studied in Rome for a year, retains his links with Italy and takes his wife and children there on annual visits to reconnect with family and friends.

Italy, which accounts for 4% of all world trade, has in recent years continually increased its year-on-year trade with South Africa and is now one of South Africa’s top economic partners, a position that reached its peak in 1998. During that year, investment in SA increased by 426% compared to the previous year. By 2004, direct private investments from Italy topped €38.5million. Total trade in 2004 was €3.157billion, a comfortable increase of 19% over the previous year.

Italy makes its mark

ever Italian head of state to visit South Africa.

Offi cial visits by the speaker of SA’s parliament, Dr Frene Ginwala in 2002, and a subsequent visit by South Africa’s President, Thabo Mbeki earlier this year (accompa-nied by a delegation of business people from the private sector) has only cemented the burgeoning relationship.

Bilateral agreements between the two countries have been signed in the areas of trade, health, culture, science and technology, public transport, education, cinema and sport. Relationships both on govern-mental level and in the private sector are healthy, and growth in trade and exchange is set to continue its upward trend.

Page 7ITALIAN-SOUTH AFRICAN CHAMBER OF TRADE AND INDUSTRIES

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TRADE & INDUSTRY

Members of BUSA (Business Unity SA) met with over 200 trade counterparts in Italy–repre-senting businesses of all sizes. A Memorandum of Understanding was signed between BUSA and Confi ndustria, an Italian business association, to bolster relation-ships and guide the way forward. During the visit, President Mbeki asked BUSA to identify six or seven areas for future business focus. These are likely to include infrastructure and tourism, mining, agriculture and tech-nology. A delegation of around 200 business people from Italy is expected in SA during 2007.

Exports to South AfricaTotal exports from Italy to SA in 2005 topped €1.3 billion, a 13.5% increase on the pre-vious year.

The biggest increase in exports to SA in a single sector during 2005 was that of refi ned energy products, notably unleaded fuel, which increased by a whopping 235% over the previous year, and constitutes 3.5% of Italy’s total exports to SA. The largest chunk of exports to SA was mechanical machinery and domestic appli-ances, almost 32.5% of the total exports. Precision instruments, which have shown a healthy 28.6% growth over 2004/2005,

represented over 13% of the total exports.

Another growth area was chemical/pharmaceutical prod-ucts, which have grown more than 24% over 2004 and make up 12% of total exports.

The growing popularity of Italian food and beverage prod-ucts is undisputed, and the fi gures show a steady growth of 13% over the previous year. Peroni beer, a traditional Italian brand, was recently launched in SA, according to Trade Commissioner Gianpaolo Bruno.

Culinary contributions

Another of the Mariano brothers, Gianni Mariano, has carved

a niche for himself as a successful restau-rateur. After 10 years as owner of the Brazilian brand of coffee shops, he and his friend Paolo Scalla wanted to return to their roots. The Mastrantonio brand was thus

born. It has grown to a sizeable group of 25 outlets under various brand names, and employs more than 500 staff members.

“The way forward is to train people to become confi dent and self-suffi cient. I believe this is the best way to make a sustainable contri-bution to the future of this country,” Mariano says.

He believes that the values to pass on to his children are simple, and incorporate a code of behaviour combining Italian culture, traditions and moral values with those of Africa, in particular the spirit of Ubuntu (humanity to others). He says that he wants his children to fi nd their own path in life and appreciate the freedom to be what they want to be.

But Mariano has more than food on his plate; he was awarded the Business Day BASA Mentor of the Year in 2005, and is actively involved in the Artists Proof Studio project in downtown Johannesburg.

Mariano recollects a time when it was hard to fi nd Italian products in SA. But now, against a changing landscape, his food chain seeks to retain authenticity in a market where many exploit the perceived value of an Italian name, but do not always adhere to the authenticity of the food.

These sandstone blocks at the cutting facility Graniti Tecnica will later be cut into slabs with a thickness of 2cm or 3cm

ITALIAN-SOUTH AFRICAN CHAMBER OF TRADE AND INDUSTRIESPage 8

TRADE & INDUSTRY

Italy is the world’s largest pro-ducer of gold jewellery–18% of all gold jewellery is produced in the country, with more than 200 million pieces of jewellery produced annually. Italy is still the largest consumer market in Europe and the world’s undis-puted trendsetter. The largest export market for Italy remains the U.S.

Italy annually imports around 75% of SA’s 450 tonnes of gold exports for jewellery. In 1997, leading Italian gold jewel-lery manufacturer Filk joined hands with local Cape Town gold chain manufacturing plant OroAfrica, forming Filk Gold Chains of SA, which produces more than 6 tonnes of gold chains annually.

Two of Italy’s top automotive leather manufacturers, Mario Levi Spa and Ambra Leather, opened a new multimillion-rand leather plant in Uitenhage, in the Eastern Cape in 2001. This investment underlined Italian confi dence in the South African economy.

In the near future, Ferrero, the chocolate company, will be

building its own manufacturing plant in SA. Its brands are already well established and this will allow extensions to their product range.

The largest Italian company doing business in SA today is Fiat Auto South Africa (FASA) which, after its return to SA in the post-sanctions era, is con-tinuing to make its presence felt in the auto market. Fiat has, in fact, achieved the distinction of being the third-fastest-growing manufacturer when it comes to overall new vehicle sales fi g-ures, year to date August 2006 compared with August 2005.

In a market set to be enhanced by the introduction next year of private leasing, Fiat is certain to extend its hold on the market. Fiat Auto SA MD Giorgio Gorelli says: “The extension of our current range of Fiat models together with the refreshed Alfa Romeo line-up, which plays a role in the upper end of the mass market, has put us in a position of strength. Another contributing factor to our current success has been the major improvements in quality–

this obviously has a very positive effect on customer satisfaction.

This was part of the compa-ny’s turnaround strategy, which addressed aspects such as pro-cedures and systems, in order to increase its capacity to react better to dealers’ and customers’ demands.”

Gorelli says each drastic move has its challenges, but expressed satisfaction with his staff and dealer network in facing up to the challenge. “We now have a sturdy platform to work from.”

“The launch last year of the Strada pickup has done much for Fiat. The imminent launch of the extended cab version of the Fiat Strada makes it the perfect choice for those who want to buy a pick-up without a double cab, yet still want the convenience and security of a double

cab.” Gorelli says demand is in fact exceeding production capacity and the company overcomes this by importing from its factories in Brazil.

“South Africa saw the launch of the new Alfa Spider at Auto Africa in October–a truly exciting event,” Gorelli says. This fi ery fast car will only grace the garage of a chosen few, yet it says a great deal about its designers and manufacturers.

Another Italian subsidiary with a strong foothold in the SA market is fashion eyewear manufacturing and distributor Luxottica Group. The South African operation was estab-lished in 1998. “At that time we had a warehouse in Midrand, but have subsequently changed the nature of our operation to one which distributes directly from Italy, on customers’ The Fiat Strada is an example of Fiat’s extended product range in the South African market

Page 9HIGHLIGHTS OF THE ITALIAN-SOUTH AFRICAN ENGAGEMENT

TRADE & INDUSTRY SPECIAL ADVERTISING SECTION

Earthmoving equipment

I s it some twist of fate, or just journalistic fancy that sees signifi -

cance in the fact that a man, born in Ethiopia, who has moved through ten primary schools before eventually settling in Johannesburg, has built an earthmoving company?

Joe (Giuseppe) Stravino, founder of BLC Plant, today Africa’s leading used equipment dealer in earthmoving equipment, was born in Ethiopia and not in the village of Stravino in Northern Italy, as one might want to assume. His father hails from Milan and his grandpar-ents from Naples. Although he quali-fi ed as a civil engineer, he decided to apply himself to the side of the busi-ness where interpersonal contact would be greater than in the design offi ce. His business endeavours have led to the employment of 220 people–and are still expanding across the globe.

BLC has two sister companies, Blackwood Hodge, which deals in used spares, and The Used Equipment Company, a joint venture with Barloword Equipment, formed to create a platform for marketing used Caterpillar equipment in Southern Africa.

“This strategic partnership has opened many new doors for us and facilitated continued expansion onto the continent,” says Stravino.

His two sons, Luigi and Paolo, have joined the business in recent years and with the birth of his fi rst grandson earlier this year, there are now four generations of Stravinos living in Johannesburg.

“Recent changes in SA have led to greater ease in trading around the world and we are still seeing the opening of more markets,” he says.

“Upliftment starts in your own yard,” concludes Stravino, whose company stretches over eight plots in Johannesburg. “Each of us should take care of what we have as a start.” BLC continues to attract attention because of this very ethic: its facilities are counted among the best in the world.

orders,” explains director Stefano Toffoli.

“Eyewear, be it sunglasses or prescription specs, have become a fashion item, which is why designer brands have grown at an exponential rate. In South Africa’s growing economy, more people are becoming fashion conscious and are asking for these designer items. Luxottica’s range of around 20 brands available in sub-Saharan Africa includes the likes of Ray-Ban, Dolce & Gabbana, Versace, Prada, Donna Karan, Bulgari, Chanel, Burberry, Arnette and Vogue.

“Our portfolio is always fresh, with plenty of trendy brands, and we share the same launch time as Europe,” says Toffoli. “In Africa we are up to date with the latest fashion trends.”

Italy-based Luxottica Group, which is the world’s largest eye-wear company with a portfolio that comprises 26 house and designer brands, is present in 130 countries through whole-sale subsidiaries and distribu-tors and manages nearly 6,000 optical and sunglasses stores in all major markets from North America to Asia-Pacifi c and China.

With Italy and South Africa sharing the feature of being surrounded by sea, the shipping sector is strongly represented in SA with Ignazio Messina & Co, fi rst started in 1921. Having grown from a one-man busi-ness, its head offi ce in Genoa now has a fi rm foothold in SA.

It currently has 17 of its own ships sailing under the Italian fl ag, and additional ships, spe-cialized ro-ro containers and full containers can be chartered. The company runs a regular liner service between South Africa and the major ports in the Mediterranean Sea.

One notable co-operation between South African and Italian companies is that of Betta Sanitaryware and Sacmi Whiteware. Betta is part of the local Ceramic Industries Group, South Africa’s largest ceramics manufacturer. Its use of Sacmi’s industrial machinery has given it the edge by employing robotic glazing, high-pressure casting equipment and using the latest technology developed in Italy. Italian technology is thus making its way into South African bathrooms.

If the current growth pat-terns continue as planned, Italy and South Africa will continue to take a bigger share of each others’ overall trading, with a steady upward growth pattern.

Italy and South Africa will

continue to take a bigger share of each others’ overall trading