the african business journal dec 2011 - john pinching
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The African Business Journal (TABJ) is a digital publication with an intoxicating cocktail of news articles, lifestyle features and company profilesTRANSCRIPT
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 ►
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
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
© 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
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
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Parktown, 2193
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uK office
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GEoRGE MEDIA InC.
TABJ Team
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
028066
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
112166
cOncreTe mAnufAcTurers
AssOciATiOnconcrete conversation
010
cOncreTe mAnufAcTurers
AssOciATiOnconcrete conversation
010
Business
12 BUSINESS � concrete manufacturers association
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.
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
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
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
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
18 BUSINESS � concrete manufacturers association
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.
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
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
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
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
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
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.
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
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
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
29DECEMBER 2011 � The African Business Journal
Gaddafi is dead-- how it came about really doesn’t matter
“He is the pivotal figure in a
countdown to World War III”Hunter S. Thompson, 1986
CONFRONTATIONS BETWEEN THE REBELS AND AL-GADDAFI IN AL BAYDA | PHOTO SOURCE: WIKIMEDIA COMMONS
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)
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.
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.
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
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,
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
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.
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
ZAmBiAunited nation040
ZAmBiAunited nation
Business
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
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.
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:
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
46 BUSINESS � Zambia
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.
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
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
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
51DECEMBER 2011 � The African Business Journal
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
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
BOk TO THe fuTure054
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
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
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
PreTTY flYkruGer mPumAlAnGA inTernATiOnAl AirPOrT
058
AViATiOn
PreTTY flYkruGer mPumAlAnGA inTernATiOnAl AirPOrT
60 AVIATION � Kruger mpumalanga International airport
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.
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
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.
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
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
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066
HYunDAi AuTOmOTiVeGear change
TrAnsPOrTATiOn
HYunDAi AuTOmOTiVeGear change
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
69DECEMBER 2011 � The African Business Journal
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
71DECEMBER 2011 � The African Business Journal
72 TRANSPORTATION � hyundai automotive
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.
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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
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.
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
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
Get in touch today for more informationSince 1953
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
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.
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
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.
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
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.
83DECEMBER 2011 � The African Business Journal
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
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.
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086
Stars of ccTVG4s
securTY
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.
89DECEMBER 2011 � The African Business Journal
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
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
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.
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
sTAYcOlD inTernATiOnAlThe king of cool
094
sTAYcOlD inTernATiOnAlThe king of cool
refriGerATiOn
96 REFRIGERATION � Staycold International
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
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,
99DECEMBER 2011 � The African Business Journal
C
M
Y
CM
MY
CY
CMY
K
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
101DECEMBER 2011 � The African Business Journal
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.
103DECEMBER 2011 � The African Business Journal
104 REFRIGERATION � Staycold International
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
l.A. sTAAlThe steel sovereign106
l.A. sTAAlThe steel sovereign
cOnsTrucTiOn
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
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-
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
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
sTefAnuTTi sTOcks HOlDinGsbuilding bridges
112
sTefAnuTTi sTOcks HOlDinGsbuilding bridges
cOnsTrucTiOn
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
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;
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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.
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116 CONSTRUCTION � Stefanutti Stocks holdings
STEFANUTTI RECENTLY COMPLETED A THREE-BRIDGE PROJECT IN SIERRA LEONE.
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
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
118Where the streets are paved with goldc.e.l. PAVinG PrODucTs
PAVinG
120 PAVING � c.e.l. Paving Products
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
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.
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
OJ cOnsTrucTiOnnew kids on the block124
OJ cOnsTrucTiOnnew kids on the block
PrOPerTY
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.
127DECEMBER 2011 � The African Business Journal
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.
129DECEMBER 2011 � The African Business Journal
Email: [email protected] • Lafrenz Industria,Tel: 061-261 810/215 752 • Fax: 061-261 811
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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
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.”
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,
132 PROPERTY � oJ construction
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
134JOllY GOOD sPOrTs
134
sPOrTs GeAr
JOllY GOOD sPOrTs TFG Sports
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.
137DECEMBER 2011 � The African Business Journal
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
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
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,
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
142 SPORTS GEAR � TFG Sports
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.
144 SPORTS GEAR � TFG Sports
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
146 MINING � Evraz Highveld Steel & Vanadium Limited
evraz highveld Steel & Vanadium limited
mADe Of sTeel
146
147DECEMBER 2011 � The African Business Journal
mADe Of sTeel
146
mininG
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.
149DECEMBER 2011 � The African Business Journal
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.
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.
152 MINING � Evraz Highveld Steel & Vanadium Limited
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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.”
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
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Contact Corne Britz:T: (+27)13 656 1060/37 | F: (+27)13 656 1086
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
DesmOnD equiPmenTdezzi-nated driver156
DesmOnD equiPmenTdezzi-nated driver
mininG
158 MINING � desmond equipment
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.
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
161DECEMBER 2011 � The African Business Journal
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162 MINING � desmond equipment
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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.
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
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
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
THe lime Of THe cenTurYSa lime & Gypsum
166
mininG
THe lime Of THe cenTurYSa lime & Gypsum
166
168 MINING � Sa lime & Gypsum
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.
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
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
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.
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
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