SA Mag - Issue 19

PEOPLE CULTURE TRAVEL PROPERTY BUSINESS WINE SPORT ENTERTAINMENT

A source of inspiration Source Interior Brand Architects (Source IBA) is an interior architecture and design specialist

A fruitful endeavour Bosman Family Vineyards has a long heritage in South African wine production

On the right trackTransnet Rail Engineering (TRE) is the African continent’s largest rail engineering organisation

Fashion: From Soweto to LondonFashion designer Lesego Malatsi talks to South Africa Magazine

ISSUE 19 R40.00

Dragon RedEMBRAcIng

ThE

WE TALk To gREAT WALL MoToRS (gWM) SA chAIRpERSon Tony pInFoLd

3www.southafricamag.com

WoRLd cup dREAMS EndThe Rugby World Cup dream has ended. South Africa are out and the Boks have already returned home following a 11-9 quarterfinal defeat to Australia in Wellington.

South Africa only had themselves to blame, turning the ball over on 11 occasions, but referee Bryce Lawrence was also unusually lenient, with Wallabies flanker David Pocock, who won the man of the match award, benefitting hugely.

On another night it could have been very different!

The World Cup exit has been particularly hard for me to stomach – it is after all the end of an era. Fourie du Preez, considered one of the best scrumhalves in the world, will join Japanese club Suntory, along with Danie Rossouw who has been at his side with both the Springboks and the Blue Bulls. Skipper John Smit is set for a move to English side Saracens and Victor Matfield and Bakkies Botha are also likely to make way for young blood as the Boks prepared to herald a new era.

That new era will be with a new coach - Peter de Villiers said after the match he would call it quits

De Villiers was a political choice as the man to replace Jake White. He had no shortage of critics, their motivation varying from a lack of faith in his qualities as a coach through a dislike of his occasional unwise comments, but he took a gifted squad to the Tri Nations championship and a series against the Lions, both in the same year. His resignation, after losing to the Wallabies was a graceful exit.

The South African Rugby Union says it will decide who takes charge of the Springboks next season at the end of the year.

Enjoy the magazine!

Ian Armitage Editor

EdIToRIAL Editor – Ian ArmitageSub editors – Jahn Vannisselroy Janine Kelso Tom Sturrock Writers –Colin ChineryJane Bordenave John O’hanlon

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

AccounTSFinancial Administrator –Suzanne Welsh

pRoducTIon & dESIgnMagazine design – Optic Juiceproduction manager - Jon Cooke Images: Getty, Thinkstocknews: NZPA, AAP, SAPA

dIgITAL & IThead of digital marketing & development – Syed Ahmad

TnT puBLIShIng cEo - Kevin Ellis chairman - Ken hurst publisher - TNT Multimedia Ltd

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

TNT Multimedia Limited, 10 Greycoat Place, London, SW1P 1SB tntmagazine.com

EnquIRIESTelephone: 0044 (0)1603 343267Fax: 0044 (0)1603 283602 [email protected]

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www.southafricamag.com

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06 nEWSAll the latest news from

South Africa

12 cuLTuRE FromSowetotoLondon

FashionWeekFashion designerLesego Malatsi talks toSouth Africa Magazine.

16 BuSInESS ThefutureofhealthcareInterview with neil Boyce, Country Manager of GE Healthcare

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32 gREAT WALL MoToRS SouTh AFRIcA

40 STALLIon SEcuRITy pRopERTy SERVIcES

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70 MoThEo conSTRucTIon

74 SEALAkE InduSTRIES

80 hIdRoELEcTRIcA dE cAhoRA BASSA

86 BoTSWAnA RAILWAyS

90 oRAngE RIVER cELLARS

94 Jpc

98 BoSMAn FAMILy VInEyARdS

102 REMA TIp Top

106 SouRcE IBA

110 TELEcoMunIcAcoES dE MocAMBIquE

114 ShELL oIL BoTSWAnA

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Contents

6 www.southafricamag.com

Eurozone crisis

Slovakia’s parliament has voted against measures to bolster the powers of the eurozone bailout fund.

Slovakia was the last of the eurozone’s 17 members to vote on expanding the European Financial Stability Facility.

The measure failed to pass by 21 votes, but that

German Chancellor Angela Merkel and French President Nicolas Sarkozy say they have reached agreement on strengthening Europe’s shaky banking sector following talks in Berlin where they discussed the eurozone debt crisis.

Merkel said she and Mr Sarkozy were

Slovakia voteS againSt eurozone bailout expanSion planS

eurozone criSiS talkS held in berlin

result had been anticipated after a junior party – the Freedom and Solidarity (SaS) party – in the centre-right coalition said it would abstain.

The party said it was opposed to taxpayers being asked to cover the debts of richer countries.

A new vote is expected.

“determined to do the necessary to ensure the recapitalisation of Europe’s banks.”

She spoke after talks with Sarkozy at Berlin’s chancellery aimed at forging an agreement ahead of a summit of the European Union’s 27 leaders later this month.

All the latest news from South Africa

South Africa’s R2.4 billion loan to Swaziland has yet to be signed, according to reports in the media.

South Africa’s Treasury confirmed on 10 October that no funds had been transferred.

“The loan agreement has not been signed by the Swazi authorities and as such no money has been transferred to Swaziland,” Treasury spokeswoman Bulelwa Boqwana said.

Swaziland is desperate for financial support after losing about 60 percent of its revenue from the Southern African Customs Union, which had slumped due to slowing trade.

The first instalment of the loan was due to have been transferred to Swaziland in August, with subsequent payments credited in October and February.

As part of the agreement Swaziland had to align its fiscal policy to International Monetary Fund (IMF) standards, allow South African experts unhindered access to improve the country’s fiscal and budgetary plans, create platforms to attract foreign direct investment, and institute reforms to stabilise Swaziland’s economy.

Swazi loan not Signed yet


blackberry ServiceS Suffer outage

apple unveilS iphone 4S

Just hours after Blackberry maker Research in Motion (RIM) claimed all its services were “operating normally” users have complained of a new crash.

RIM said in a statement the issue responsible for delays in subscriber services had been resolved.

But angry users took to social media like Twitter to report renewed issues with their handsets and an inability to send messages and emails.

Kenya’s Safaricom Ltd. said on Twitter that its Blackberry customers were experiencing a “technical fault” and apologised for any inconvenience.

The cause is believed to be due to server problems at RIM’s data centre in Slough, UK.

Apple and its new CEO Tim Cook have unveiled the latest iteration of the iPhone - the iPhone 4S.

The phone boasts an improved camera and significantly extended battery life.

However, it is identical in form to the previous model, disappointing fans who had hoped for a thinner, bigger-screened design.

MTN and Vodacom, the networks that carried the iPhone 4, are unable to say whether they will be bringing Apple’s latest iteration of the iPhone to our shores.

iPhone 4S will run the latest iOS5 operating system.South African consumers will likely have to wait and see

when exactly the device will be launched in South Africa. It will be available in the US, Australia, Canada, France, Germany, Japan and the UK from October 14.

BusinessMoney


World

Travel

Former Ukrainian Prime Minister Yulia Tymoshenko has been found guilty of abuse of office and sentenced to seven years in jail.

Judge Rodion Kireev ruled she had criminally exceeded her powers when she signed a gas deal with Russia in 2009 and ordered her to pay compensation of $189 million for losses incurred by Ukraine’s gas monopoly Naftogaz.

Mrs Tymoshenko said the charges were politically motivated and vowed to appeal against

The oil spill from the container ship Rena, which struck a reef in New Zealand’s Bay of Plenty, has been declared the country’s worst maritime environmental disaster.

Officials urged people to avoid the area, warning that the water off Tauranga city had become “highly toxic”.

Fist-sized tarballs first washed ashore on 10 October, five days after the 236m Liberian-flagged container ship ran aground Astrolabe Reef, 12 nautical miles off the coast.

New Zealand’s Environment Minister

former ukrainian pm yulia tymoShenko jailed

oil Spill declared ‘new zealand’S worSt’

her sentence and fight for Ukraine “till her last breath”.

She added that the judge was “taking Ukraine’s freedom” and that the “verdict won’t stop me”.

Mrs Tymoshenko has always maintained that the trial was politically motivated and has accused

President Yanukovych of masterminding the prosecution.

As a convicted criminal, she would be unable to participate in Ukraine’s next presidential elections in 2012.

Nick Smith said the oil spill was inevitable and the clean-up could take weeks.

“I want to acknowledge that this event has come to a scale where it is New Zealand’s most significant maritime environmental maritime disaster,” he said.

“The advice I’m receiving is that the amount of oil is five-fold what was released in earlier periods.

“This operation is going to be a marathon, not a sprint.”

South Africa missed out on qualification for the African Nations Cup after they could only manage a 0-0 draw against Sierra Leone at the Mbombela Stadium on 8 October.

With Niger losing 3-0 in Egypt, a win for either side in Nelspruit would have sent them through.

The draw left South Africa tied with Niger and Sierra Leone, and ahead on goal differential — which is usually good enough to advance.

There were celebrations at the final whistle and the team even did a lap of honour.

But, the Confederation of African Football (CAF) used head-to-head results among the three teams to decide who should go through. That meant Niger went through to the tournament in Gabon and Equatorial Guinea as leaders of Group G and South Africa went out.

“Let’s hear what CAF says,” coach Pitso Mosimane said in a TV interview. “Did we qualify? What do you think? If we’ve qualified I’m very happy.

“I don’t know.”The South African Football Association

(Safa) has written a letter to CAF, challenging qualifying criteria that saw Niger go through.

Safa vice president Mandla “Shoes” Mazibuko said the letter was sent immediately after establishing that Bafana had not actually qualified for the tournament.

bafana bafana out of african nationS cup


apple ‘viSionary’ Steve jobS dieS aged 56

Co-founder and former chief executive of US technology giant Apple Steve Jobs has died at the age of 56.

US President Barack Obama led the tributes, saying: “Steve was among the greatest of American innovators - brave enough to think differently, bold enough to believe he could change the world, and talented enough to do it.”

Jobs announced he was suffering from pancreatic cancer in 2004.

Apple said his “brilliance, passion and energy were the source of countless innovations that enrich and improve all of our lives”.

“The world is immeasurably better because of Steve.”

Jobs introduced the colourful iMac computer, the iPod and the iPhone to the world.

BusinessSport


Sport

South Africa are out of the 2011 Rugby World Cup following a 11-9 quarterfinal defeat to Australia in Wellington.

In many ways South Africa only had themselves to blame, turning the ball over on 11 occasions, but referee Bryce Lawrence was also extremely lenient, with Wallabies flanker David Pocock benefitting hugely.

Pocock won the man of the match award, and was superb, but the story could have been very different on another night.

A heartbroken springbok scrumhalf Fourie du Preez said that the World Cup exit was even harder to stomach in the knowledge that an era had ended.

“We did all the hard work tonight, and during the World Cup, to win this game, and to come up short at the end of the day is hugely disappointing,” Du Preez said.

“It has been a long road for us and this is a very sad exit.”

Du Preez, considered one of the best scrumhalves in

bokS luck out againSt auStralia

the world, will join Japanese club Suntory, along with Danie Rossouw who has been at his side with both the Springboks and the Blue Bulls. Springbok coach Peter de Villiers said after the match he would call it quits, skipper John Smit is set for a move to English side Saracens, while Victor Matfield and Bakkies Botha were also likely to make way for young blood as the Boks prepared to herald a new era.

Du Preez admitted the defeat to the Wallabies was one was one of the most frustrating matches he had played.

“Any game you lose in a Springbok jersey is hugely disappointing and you don’t

want to lose badly either,” he said.

“If you look at the way we played, we are proud of our performance tonight and that makes it so much harder to take.”

Late in the second half, Du Preez had a chance to score a try, but lost the ball just metres before the try line.

The only area in which the Wallabies were superior to the Boks, according to the match statistics, was in the number of handling errors made by the two sides.

Australia, who had the ball for 44 percent of the match, knocked it on nine times while the Springboks made 11 handling errors.

“I think that just shows that stats don’t mean anything,” Du Preez said.

“We felt that we were in control the whole game, even after the first half when we went to the change room at 8-3.

“We felt that we were totally in control and that’s just the way rugby goes.

“We did enough to win the game, it just didn’t show on the scoreboard.”

The Archbishop of Canterbury, who gave Zimbabwean President Robert Mugabe a dossier of alleged abuses against Anglicans, has left the country.

The head of the worldwide Anglican church has left following a meeting with President Robert Mugabe, the longtime ruler, over abuse and intimidation of his church’s worshippers.

The Archbishop of Canterbury, Rowan Williams, on 11 October flew out of Harare for neighbouring Zambia, the last stop of his southern Africa tour which began in Malawi.

On 10 October Williams presented President Mugabe with a dossier on the abuse and intimidation mainstream Zimbabwean Anglicans are suffering.

Anglicans in Zimbabwe have been divided since a breakaway bishop, Nolbert Kunonga, was excommunicated in 2007 for inciting violence in sermons supporting Mugabe’s party.

Kunonga’s followers have taken over the main cathedral, schools, hospitals and the church’s bank accounts.

the archbiShop of canterbury

leaveS zimbabwe


maSSmart and SabS agree to help SmeS

Massmart and the South Africa Bureau of Standards (SABS) have signed an agreement designed to help small businesses improve their product quality.

Massmart CEO Grant Pattison told reporters in Johannesburg that his company recognised the “opportunity to develop” the local supplier base “while ensuring safer, higher quality products” for customer.

“The Consumer Protection Act that came into effect in April 2011 fuelled the initiative,” he said.

The deal covered three areas, according to Sylvester Ratlabala, SABS commercial executive. First, the SABS would conduct quality audits on suppliers to Massmart’s value chain. Second, it would test products on Massmart’s shelves to ensure they met the required standards. Third, SABS would provide training to Massmart’s suppliers, particularly small and medium businesses (SMEs), on meeting standards.

“The goal is to ensure that SMEs that supply to Massmart’s chain have quality products that can be competitive,” Ratlabala said.

BusinessReligion

Soweto

F ive years ago Lesego Malatsi couldn’t find a job. In September, he showed his designs at one of the biggest

fashion showcases on the planet - London Fashion Week.

Malatsi, a graduate of Richard Branson’s Centre of Entrepreneurship in Johannesburg, was invited to showcase his work at the “official off-site event to the premium shows”, Fashion Finest Renaissance.

“I don’t think words can explain my feelings of showing at such an event, especially when it’s considered such a significant privilege by my peers in the industry,” Malatsi, a popular, young fashion designer, says.

After the show, Fashions Finest said the collection had set the catwalk alight, tweeting the clothes were “hotter than hot”.

“Taking part in this event was such an honour. It gave me a chance to share South Africa’s unique creativity, energy and


Fashion designer Lesego Malatsi talks to South Africa Magazine.By Ian Armitage

F r o M

F A S h I o n w e e kLondont o

vibrancy with a wider audience.”Malatsi says The Branson Centre of

Entrepreneurship’s support and practical advice gave him the confidence to succeed.

“My clothing range was very popular on the ramp and I received high praise for my work. The Branson Centre supported me and gave me the advice I needed to succeed and has helped me create jobs for many people.”

Malatsi took part in the event alongside designers from Angola, Zambia, Nigeria, Ghana, the US and the UK. Two other South African designers – Stiaan Louw and Laduma Ngxokolo – were also at London Fashion Week for the Ubuntu International

project showcase.While Malatsi currently manages

his own business, Mzansi Designers Emporium, which employs 18 people, his success as an up-and-coming fashion designer wasn’t instant.

“Like many young South Africans, when I finished my studies I couldn’t find a job. So I started my own business instead,” Malatsi says. “However, finding support to help me launch my fashion label wasn’t easy so I approached the Branson Centre of Entrepreneurship and was afforded many networking opportunities to promote my business.”

That was in 2006.“I never dreamed I would

be showing my clothes on the international stage. I never realised it could happen and it is very exciting. I grew up under a corrugated-metal roof in Soweto.

“There is a lot of talent in Africa. It made me realise how important my success was to not just me and my family, but in terms of

empowering other people.”He has a five-year plan to create

From Soweto to London Fashion Week CULTURE


I never dreamed I would be

showing my clothes on the international stage. I grew up under a corrugated-metal roof in

Soweto

850 jobs in South Africa and to take African fashion global.

“Currently I have a store at the popular Maponya Mall in Soweto and I export clothing to a fashion store in Regent Street, Cambridge, UK. We aim for much more, and hope to create many more jobs.”

His story is remarkable.“I have gone from

stitching ready-to-wear garments in a Soweto township mall set amid shanties to savouring the

my hand at accounting. I soon altered my career aspirations, following some experiences I had, which changed my mind and how I saw things.”

Malatsi went onto study fashion at the Cape Peninsula University of Technology and has been making clothes since.

His signature is his African print and inspired garments.

“I use what I think is authentically South African and colours representing the diversity of the country’s culture.

“I think designers must be true to themselves and their roots if they are to impress an international audience.

“In many instances designers have been encouraged to try and use an almost European model, which is the wrong approach, I think. My understanding now is if you want to be a global competitor, you must bring something to compete with – something unique.”

What are his thoughts on showing at London Fashion Week?

“I feel like I’ve conquered one of the greatest challenges,” he says. “And yes, showcasing at the London Fashion Week has been my goal for years.”

In a country where unemployment is on the rise


sweet success of London’s Fashion Week,” Malatsi says.

“During London Fashion Week I displayed a collection of new look African prints at the Fashion Finest event.

“Honestly, you don’t know how to prepare, but it went very well.

“I certainly took the long road to London that started in a tiny home in Soweto. I had entrepreneurial flair from a young age and after leaving high school tried

and youth have little hope for the future, entrepreneurship is critical to boosting employment and fostering long-term economic growth.

Malatsi is a man with a bright future.

For more information about The Branson Centre of Entrepreneurship, which is operated by Virgin Unite, the non-profit foundation of the Virgin Group, visit www.bransoncentre.org or www.virginunite.com.

To learn more about Mzansi Designers, visit www.mzansidesigners.co.za. End


In many instances designers have been

encouraged to try use an almost like European

model, which is the wrong approach, I think. My

understanding now is if

you want to be a global competitor,

you must bring something to compete with – something

unique

From Soweto to London Fashion week CULTURE

A “deadly divide”, a healthcare system “not working…going in the wrong direction…worse than existed during apartheid.” These were the words of

Health Minister Dr Aaron Motsoaledi, addressing the Board of Healthcare Funders’ (BHF) conference at Sun City in July, where pricing, affordability and sustainability were all in the spotlight.

The solution, he says, pledging to meet “head on” a public health system “in a crisis of quality”, lies in re-engineering the country’s primary healthcare system. And during the conference, Dr Motsoaledi announced a three streams plan of care with particular focus on rural areas and the provision of specialists in each of the rural district municipalities.


Interview with Neil Boyce, Country Manager of GE healthcare. By Colin Chinery

T h E F U T U R E O Fhealthcare

solutions and basic health care needs. South Africa must reduce mortality rates and ensure no one is lost to basic illnesses.”

From his Johannesburg headquarters Boyce is responsible for developing and expanding customer relationships in South Africa and beyond, as well as implementing a delivery transforming strategy around long-term public and private sector partnerships.

“Our product offerings are developing a rather more rural and basic focus. The Government doesn’t want to buy only high-end; they want us to offer a full solution covering all segments and sectors of the market. In the past we’ve had one size fits all scenarios, selling top end equipment and service at a premium price and not catering for this bigger picture.

“This is changing, addressing the South African situation where up to eight million people have healthcare insurance and the Government looks after the rest – 42 million. The National Health Insurance model recently announced -- to be phased in over 14 years according to Dr Motsoaledi -- has looked at best practice worldwide and tried to find the best out of each. The Government wants to bring more people into the net, work on basic healthcare and bring down basic statistics such as infant mortality, and we are perfectly placed to play a leading role.”

GE Healthcare provides transformational medical technologies and services that are shaping a new age of patient care, and is a leading maker of diagnostic imaging equipment including MRI, ultrasound, and computed tomography (CT) scanners.

With expertise in medical imaging and information technologies, diagnostics, patient monitoring systems, drug discovery, biopharmaceutical manufacturing technologies, performance improvement and solutions services, GE Healthcare is helping its customers deliver better care to more people around the world at a lower cost. It

The future of healthcare BUSINESS


Both plan and analysis strike a chord with Neil Boyce, Country Manager of GE Healthcare South Africa.

“My vision for healthcare is that we do the basics right. For example up until a few years ago South Africa was not getting the basics right with regards to HIV. South Africa is now the biggest anti retroviral market in the world,” Boyce, appointed last year to play a leading role in driving GE Healthcare’s organic growth in South Africa, tells South Africa Magazine.

“In rural areas people are still dying from malaria, from TB and other basic diseases that can be treated or cured. Here at GE we will be looking increasingly at diagnostic

is also partnering with healthcare leaders to implement a shift to sustainable healthcare systems.

“The South African market for GE Healthcare is witnessing a dramatic growth and we have already identified a clear market strategy,” says Boyce, who has an extensive background within the healthcare industry in various roles including sales at Johnson & Johnson, and 10 years at Tyco Healthcare as Sales & Marketing Director for the surgical, medical and imaging business.

One of the company’s priorities is the training of health-service suppliers, and Boyce expects GE Healthcare to play an integral role in supporting primary health services through mobile hospital units.

“This year we plan to start schooling 500 people in partnership with training institutions. We will offer specific training courses for the likes of hospital managers and technicians. Training is one of the foundations of our business. We have a lot of in house training and skills development, getting our staff to the next level, uplifting and enabling previously disadvantaged people and companies.”

On-going training across modalities within GE Healthcare is accelerating. “It’s been exciting but very difficult to hone the training programmes from the high-end perspective of Europe and the United States to that of South Africa where we are trying to do the basics right first and then expand to the next level. In parallel we will continue to bring to the local market relevant innovative technologies. But as we say at GE, it’s not innovation for innovation’s sake; it’s about innovation that successfully targets our customers and their patients’ needs.”

But the big test in training is funding and cost. “It’s very expensive. South Africa is a vast country with a huge turnover of people coming, people going, and it’s challenging.”

At the forefront of GE’s commitment to sustainable and cost-effective healthcare

globally and here in South Africa is ‘Healthymagination’, a programme with over 100 innovations all focused on addressing three critical needs: lowering costs, touching more lives and improving quality.

Specifically, it is geared to: Significantlyreducethecostof

proceduresandprocesseswherepossiblewithGEtechnologyandservices

Increaseaccesstoservices,technologiesandhealtheducation

Greatlyimprovequalityofcareforpatientsbypartneringwithphysiciansandotherstakeholderstofocusoninnovationthatsimplifyandrefinehealthcareproceduresandacceleratestandardsofcare.

“Healthymagination is a GE pillar, a big driver, reducing the cost and getting more people into affordable health,” says Boyce. “The recent commercial launch of GE Healthcare’s Vscan - a pocket-sized ultra sound visualisation tool - in South Africa is in line with the Healthymagination initiative,


another clear reflection of its mission focusing on bringing high quality healthcare at lower costs to more people. It can potentially help in reducing the time needed for diagnosis as well as reducing patient wait times and improving physician workflow. We are continuously developing innovations focused on reducing costs, increasing access and improving quality and efficiency.”

Rising costs is a hot issue in South African healthcare, and the biggest concern for employers, brokers and medical schemes within the healthcare industry according to findings from the 2010 OMAC Actuaries & Consultants Healthcare Survey. Medical schemes are still struggling to contain these costs, while at the same time members perceive the benefits to be decreasing, says the study.

Boyce concurs and says as well as having top end equipment, GE Healthcare is looking towards the more reasonably priced middle to top end products tailored for the emerging market. “GE is a vast company and has a lot of resource and financial muscle. We’ve

looked at our product offering, the way we go to market, and the smarter and more productive options. We have a lot of expertise in giving hospitals models to work from the back door to the front and we are driving this expertise home. We aim to make hospitals more productive for the benefit both of the patient and the funding Government.

“At present the infrastructure isn’t geared to accommodate the growth, both from the hospital building and specialist provision perspectives. GE has had a look at this, and when it comes to training and education we are one of the market leaders. We have a fantastic model to accommodate this and train end users, be they radiologists, cardiologists, doctors, sisters, midwives and other disciplines.”

With hospitals projects development, a core competency, GE Healthcare South Africa has a designated team working with architects, EPC contractors and Investors, where it is looking at opportunities to design and provide integrated equipping solutions for new Greenfield site hospitals. “This is another area where we can add expertise, and we have another very experienced team specialising in the Public and Private Partnership (PPP) model and a very strong consortium looking at the road forward. In this consortium, we are the Medical Technology Partner and will handle the complete Medical Equipping solution. The Government has announced five or six PPPs and we must be able to compete and get into this market and add value to accommodate the National Health Care model. Altogether I believe we can provide a comprehensive solution to the healthcare market.

“Yes we are an American Group, but effectively a South African company with American back up looking at South African and African challenges and opportunities. For us to be successful we need to find a localised African solution for African challenges, using the skills, tool box and vast resources that GE has.” End


The future of healthcare BUSINESS


A S L I G h T L Ydifferent approach

Dave honeyman, Executive: Business Development of guardrisk Allied

products and Services (pty) Ltd, and Kees Goedhart, Executive:

Underwriting Short-Term Insurance at Guardrisk Insurance Ltd, talk to

South Africa Magazine.

G uardrisk is wholly owned by Alexander Forbes and began in South Africa

1992 as the world’s first cell capture insurer.

The basic approach of Guardrisk is to provide a three-fold service to clients, encompassing insurance and risk management. Its central focus is on assisting companies in insuring and financing their risk exposures.

“We study the companies` risk exposures and then come up with customised solutions to look after their needs,” says Dave Honeyman, Executive: Business Development of Guardrisk Allied Products and Services (Pty) Ltd. “Their positions are carefully evaluated, and on the basis of this solutions are tailored to suit each client.”

These solutions contain three elements, namely preventative measures, predictable risk and catastrophic risk. Guardrisk comprises three wholly owned operating subsidiaries, Guardrisk Insurance Company Limited, Guardrisk Life Limited and Guardrisk Allied Products and Services (Pty) Ltd (formerly Cre8).

“Guardrisk that takes a slightly different approach to most,” says Kees Goedhart, Executive: Underwriting Short-Term Insurance at Guardrisk Insurance Ltd. “In terms of insurance, we are a cell captive insurance company servicing corporate clients, specialising in alternative risk transfer,” Honeyman adds.

The concept of cell captives is relatively simple: A cell captive insurer (in this case Guardrisk)

guardrisk FEATURE


nAME?????????????????????????????????

nAME?????????????????????????????????

Risk analysisSelf insurance product for municipalities which includes internal and autonomous risk management;

A range of ‘add-on’ products• Access to an extensive range of insurance solutions (marine, aviation, special equipment, etc) through our re-insurers• Re-insurance partners that are most reputable and stable re-insurers• Careful analysis of client needs to ensure placement of insurance with the best option for that client• Customised solutions for each client, ensuring their needs are met• Support to major clients to help in managing risk and occupational health and safety issues• Quick turn-around time on claims administration• Efficient and effective administration of the claims process• Excellent track record of claims paid

Municipal Products and ServicesLateral Unison Specialist Financial Services prides itself on keeping South Africa’s municipalities functioning and free from financial risk. We have a specialist team in place with many years of experience in providing this particular service.

We offer a range of dedicated products for municipalities that include insurance, premium financing, financial planning, risk assessment and risk management.

Our particular expertise in finding the correct solution for the complex and comprehensive requirements ofmunicipalities.

We have several large municipalities as our clients, including a number of District Municipalities.

Insurance productsLateral Unison offers a specialist financial service to our municipal clients that is based on a detailed, comprehensive and thorough assessment of their particular needs.

We partner with our municipal clients in order to manage the insurance risk effectively, minimise undue losses, outages and delays.

The exceptional service we offer to our municipal clients is achieved because we make it our business to understand the greater context and environments within which municipalities operate, in order to tailor-make the right insurance products to meet specific needs and challenges.

Insurance is provided for• Buildings and their Improvements• Plants and various Assets• Vehicles and machinery• Technical and specialist equipment and infrastructure• Specialised items.

Risk assessment servicesLateral Unison has a scanning and risk assessment service which operates efficiently with our client municipalities. Our experienced staff frequently visit ‘on site’, and they do both formal and informal risk assessments. If a hazard or problem is noticed, this is noted and action is recommended.

Frequent risk assessments are important and necessary because this is how a small problem is picked up and dealt with before it becomes a major issue that can ‘cascade’ into a major risk.

Risk management Risk management is a natural follow-on from risk assessment and is a process which is managed in conjunction with our clients, characterised by constant feedback and intervention loops.

Lateral Unison Insurance Brokers (Pty) Ltd is a licensed financial services provider, with a proven track record of providing trusted risk insurance products to individuals, businesses, municipalities and parastatals.

Lateral Unison has a range of end-to-end services that support our core business of Insurance and risk management.

We believe people are the heart of any good business, and the business of risk needs people who care about the solutions they provide. As such every single client’s risk is carefully assessed and analysed, with the appropriate solutions provided. We offer customised solutions to match our clients’ needs, with support offered in the management of risk and in many instances, overseeing health and safety issues as well.

We provide a comprehensive and innovative range of products and services forindividuals, companies and municipalities

Lateral Unison’s dedicated teams participate actively in the appropriate committees in an advisory and support role, so that solutions are sought and applied with the client in order to risk manage issues that arise.

This is only possible because of the excellent working relationship that we develop up with our municipal clients.

www.lateralunison.co.za

Tel : 0860 lateral/5283725

An Authorised Financial Services Provider(FSP 17169)

Risk analysisSelf insurance product for municipalities which includes internal and autonomous risk management;

A range of ‘add-on’ products• Access to an extensive range of insurance solutions (marine, aviation, special equipment, etc) through our re-insurers• Re-insurance partners that are most reputable and stable re-insurers• Careful analysis of client needs to ensure placement of insurance with the best option for that client• Customised solutions for each client, ensuring their needs are met• Support to major clients to help in managing risk and occupational health and safety issues• Quick turn-around time on claims administration• Efficient and effective administration of the claims process• Excellent track record of claims paid

Municipal Products and ServicesLateral Unison Specialist Financial Services prides itself on keeping South Africa’s municipalities functioning and free from financial risk. We have a specialist team in place with many years of experience in providing this particular service.

We offer a range of dedicated products for municipalities that include insurance, premium financing, financial planning, risk assessment and risk management.

Our particular expertise in finding the correct solution for the complex and comprehensive requirements ofmunicipalities.

We have several large municipalities as our clients, including a number of District Municipalities.

Insurance productsLateral Unison offers a specialist financial service to our municipal clients that is based on a detailed, comprehensive and thorough assessment of their particular needs.

We partner with our municipal clients in order to manage the insurance risk effectively, minimise undue losses, outages and delays.

The exceptional service we offer to our municipal clients is achieved because we make it our business to understand the greater context and environments within which municipalities operate, in order to tailor-make the right insurance products to meet specific needs and challenges.

Insurance is provided for• Buildings and their Improvements• Plants and various Assets• Vehicles and machinery• Technical and specialist equipment and infrastructure• Specialised items.

Risk assessment servicesLateral Unison has a scanning and risk assessment service which operates efficiently with our client municipalities. Our experienced staff frequently visit ‘on site’, and they do both formal and informal risk assessments. If a hazard or problem is noticed, this is noted and action is recommended.

Frequent risk assessments are important and necessary because this is how a small problem is picked up and dealt with before it becomes a major issue that can ‘cascade’ into a major risk.

Risk management Risk management is a natural follow-on from risk assessment and is a process which is managed in conjunction with our clients, characterised by constant feedback and intervention loops.

Lateral Unison Insurance Brokers (Pty) Ltd is a licensed financial services provider, with a proven track record of providing trusted risk insurance products to individuals, businesses, municipalities and parastatals.

Lateral Unison has a range of end-to-end services that support our core business of Insurance and risk management.

We believe people are the heart of any good business, and the business of risk needs people who care about the solutions they provide. As such every single client’s risk is carefully assessed and analysed, with the appropriate solutions provided. We offer customised solutions to match our clients’ needs, with support offered in the management of risk and in many instances, overseeing health and safety issues as well.

We provide a comprehensive and innovative range of products and services forindividuals, companies and municipalities

Lateral Unison’s dedicated teams participate actively in the appropriate committees in an advisory and support role, so that solutions are sought and applied with the client in order to risk manage issues that arise.

This is only possible because of the excellent working relationship that we develop up with our municipal clients.


Tel : 0860 lateral/5283725

An Authorised Financial Services Provider(FSP 17169)

concerns itself with underwriting, investment management and the claims process. Often accounting services are also provided. Each client company is treated as a cell, effectively insuring themselves. So, instead of taking out insurance with a third party company, clients form their own in-


guardrisk FEATURE

house micro-insurance companies, transferring money to this entity in order to build up a fund to cover insurance eventualities.

“We help companies insure and finance their risk exposures by undertaking a strategic study of the risk exposures and engineering solutions to manage and finance them,” says Honeyman.

“We help clients determine how much to spend on preventative measures, predictable risk and catastrophic risk,” Goedhart continues. “We offer underwriting

services, claims and investment management, and accounting services to client companies. Effectively the clients each own their own mini insurance company.”

We help companies insure and finance their risk exposures

LateraL Unison insUrance Brokers (Pty) Ltd

“We don’t just do conventional insurance,” Dobrowsky says. “We go a step further and we look at our client’s risk portfolio.

“As far as we are concerned the client is king. We are able to provide them the best solutions because we understand that – and our single biggest focus is the client. We consistently and always exceed their expectations. We believe in honesty, integrity and accountability and pride ourselves on being a friend face, whether the cover is for an individual, a company or municipality.

“And, as needs and businesses change, we change too, innovating and providing new and unique solutions.”

Lateral Unison does a lot of work with municipalities and prides itself on keeping them functioning and free from financial risk.

“We have a specialist team with many years of experience. We offer a range of dedicated products for municipalities that include insurance, premium financing, financial planning, risk assessment and risk management. We have several large municipalities as our clients, including a number of District Municipalities,” Dobrowsky says.

His vision is for Lateral Unison, is to become not only South Africa’s top insurance company but a world leader, providing innovative insurance risk solutions to companies on a global scale.

“We see our business exploding in the future,” Dobrowsky concludes.

“The business was founded in 2000 and we have made it our business to provide the best possible

brokerage services in risk mitigation and management to our clients,” says General Manager Daniel Dobrowsky.

Over the past decade the business which was founded in a garage by CEO Mr Craig Dobrowsky has prided itself on building lasting relationships with clients and is today proud to be considered one of South Africa’s top service providers in the risk insurance industry.

“We have a strong reputation,” Dobrowsky says. “We believe in mitigating, reducing and sharing risk.

“We also believe people are the heart of any good business and the business of risk certainly needs people who care.”

Lateral Unison has a range of end-to-end services that support its core business of insurance and risk management.

It offers customised solutions to match clients’ needs with support

offered in the management of risk and in many instances,

overseeing health and safety issues as well.

For more information please contact: Tel: 0860 5283725



Lateral Unison Insurance Brokers (Pty) Ltd is a licensed financial services provider with a proven track record in offering risk insurance products to individuals, businesses, municipalities and parastatals.

Cell captive insurance is essentially based on equity participation, he says.

“This keeps costs down and gives clients access to a broad base of insurance skills and benefits traditionally enjoyed by short-term insurers,” adds Goedhart.

The insurance products that are provided to cells are primarily in the life insurance class, including group benefits, health insurance, funeral benefits, investment protection, post retirement medical cover and pre-funding.

“Guardrisk has an excellent reputation and a strong history,” says Honeyman.

This past year was an exciting one for Guardrisk, with Guardrisk Life performing extremely well.

“The Guardrisk Group enjoyed sound growth in 2010, once again delivering sustainable financial


guardrisk FEATURE

results,” says Honeyman. For the year ended 31 March

2011 the group’s life and short-term operations recorded gross premium income, excluding reinsurance inwards, of R5.4 billion, up 17 percent from R4.6 billion in 2010.

During the period, gross premium income written in clients’ cells increased by 14 percent to R3.3 billion (2010: R2.9 billion); total assets rose by 13 percent to R7.7 billion (2010: R6.8 billion); and cell shareholders’ funds grew six percent to R1.6 billion (2010: R1.5 billion).

STALkER huTchISon AdMIRAL

Stalker hutchison Admiral (pty) Ltd (ShA) is the largest niche underwriting manager in Southern Africa offering the widest range of products. ShA is a wholly-owned subsidiary of Santam Limited, which is the largest short term insurer in South Africa. Santam is a level 3 BBBEE company and has been awarded a triple A claims paying ability rating by global credit Rating.

client relationships are one of the cornerstones of ShA and we are very proud of our long standing relationships and our proven track record of honouring our commitment and claims paying ability.

“We have continued to create value for our clients,” says Honeyman, explaining the secrets behind the fantastic performance.

Guardrisk paid dividends amounting to R274.7 million to its life and short-term ordinary shareholders.

“Guardrisk’s revenue base continues to diversify,” Goedhart adds. “We have corporate risk solutions, the life division and Guardrisk Allied Products and Services.”

“Guardrisk provides third party clients the ability to add value to their customers, providing branded products which create a competitive differentiator and boost the bottom line. The creation of value also extends to the customers of Guardrisk’s clients, who get the security of a product that is issued

Sasria, building extraordinary relationships

Special risk insurer Sasria Limited (Sasria) was founded in 1979. It provides short term insurance solutions to both corporates, commercial and personal lines clients. Sasria provides insurance for politically motivated riots, non political riots, public disorder, strikes, lockouts, civil commotion, labour disturbances and terrorism.

Sasria functions through a network of Agents of which Guardrisk is one. Guardrisk is among Sasria’s top contributors in terms of Sasria premium business. Due to our business model, partnership between Sasria and agent companies/brokers is critical in providing adequate insurance covers to our mutual clients. As a Sasria Agent, Guardrisk, is instrumental in the administration of the Sasria business as we do not do direct business with clients.

In order to ensure that we provide our mutual clients with relevant cover, Sasria increased its limits to R1.5bn in 2010, this is a value add to corporate clients. Furthermore Sasria has recently introduced

a facility to enable municipalities to insure councilors’ property under the municipalities’ policies. This is another step towards ensuring that Sasria is relevant to its distribution channels (Agents and Brokers) as well as the clients.

Effective functioning of the value chain is of key importance to Sasria. In order to enhance the value chain, Sasria is focusing on stakeholder relationship management and customer centricity. To this end Sasria developed and implemented a Customer Web Portal (CWP) with the view of improving the communication channels with its Agents. The portal has a document management facility for claims administration, underwriting administration, and the most recent development of e-coupons. Guardrisk was one of the first Agents that made use of the CWP and are already enjoying the benefits of it.

Sasria is striving for excellence and to maintain good working relations with all Brokers and Agents.

For claims queries please contact [email protected] ; for underwriting queries please contact [email protected]; for complaints and compliments please contact [email protected] or [email protected].

and underwritten by a financial services provider, along with point-of-sale convenience.”

Guardrisk has nurtured its brand carefully over the past two decades. Probably the best evidence that Guardrisk’s is truly a well respected brand is the fact that a peer ranking has confirmed Guardrisk as South Africa’s number one alternative risk transfer insurer in PWC’s biennial Strategic and Emerging issues in South African Insurance four times in a row.

Since its inception, Guardrisk has shown an appetite for investing and innovating for growth.

“The Guardrisk team is a remarkable group of people whose dedication, hard work and passion sets us apart,” concludes Honeyman.

Alexander Forbes recently sold its risk services broking operation, Alexander Forbes Risk Services, to the Marsh group.

Guardrisk Holdings – including its three local businesses: Guardrisk Insurance, Guardrisk Life and Guardrisk Allied Products and Services – was not part of this transaction; nor were international offices in Mauritius and Gibraltar (Euroguard).

“We believe that, if anything, this transaction reaffirms Guardrisk’s independence within the Alexander Forbes Group, underscoring the fact that we operate as a completely autonomous entity,” Herman Schoeman, MD of Guardrisk said.

To learn more about Guardrisk visit www.guardrisk.com. End


guardrisk FEATURE

Guardrisk holdings - including its three local businesses: Guardrisk

Insurance, Guardrisk Life and Guardrisk Allied Products - was not

part of this transaction

www.sasria.co.za+27 (0) 11 881 1300

Sasria has a key focus on education and development of the youth, it has embarked on a number of projects that focus on improving Mathematics and Science skills amongst teachers and learners.


RedE M B R A C I N G

T h E

Dragon?

Great Wall Motors (GWM) SA chairperson Tony Pinfold talks to

South Africa Magazine, charts GWM’s rise, sets ambitious

sales targets and explains why policy action is needed to support local production from

low-volume sellers.By Ian Armitage

great Wall Motors South Africa FEATURE


H ong Kong-listed Great Wall Motors (GWM) arrived in South Africa in February 2007, with 1,500 units reaching Durban

ready for sale across the country. GWM pick-ups and multi-wagons accounted for most of the new arrivals. By March, the first vehicles began selling.

GWM has since sold 30,000 units in the country.

“We act as GWM’s sole agent in South Africa,” explains GWM SA (Pty) Limited’s chairperson Tony Pinfold. “GWM’s products are reliable and well suited to local conditions, and they have been trusted by local users.”

GWM SA’s head office, as well as its logistics and central parts distribution

warehouse, is based in Durban. Its main aim is to provide “honest, reliable

and well equipped” vehicles to the broader South African market

at exceptional prices and with outstanding service levels.

The brand has grown consistently and so has

the product range. Today its SUVs, hatchbacks, passenger cars and pick-ups are a regular feature on South African roads.

“GWM is a healthy, growing brand,” says Pinfold.

GWM SA started with 23 dealers. Today it has over 65. In 2008, there were 24 Chinese vehicle brands present in South Africa – either trading, or in the process of getting certifications - but, in

the aftermath of the 2009 recession, several

left the local market.As well as the recession,

GWM SA has overcome perceptions regarding Chinese brands to exceed early sales projections. According to Pinfold, GWM initially projected that it would sell between 3,000 and 4,000 units in South Africa in its first years of operation; to date, the company has sold in excess of 30,000 units in South Africa.

“While we were affected by the economic slowdown and experienced a drop in sales, sales remain above initial projections,” Pinfold says.

“One of the biggest hurdles that we have faced is other Chinese brands,” he adds. “Quality issues, poor service and parts backup created a negative perception of Chinese-



manufactured vehicles. We had all been tarred with the same brush, but we have since proved our long-term commitment to the market and our quality.

“We are by far the biggest Chinese brand in South Africa and are no longer compared just in terms of Chinese companies – we are compared with the broader market brands.”

Despite the great progress, there is still more to achieve.

And GWM SA needs help - help from the Government.

“Government should create a step-in programme that will assist small-volume sellers to start manufacturing vehicles locally,” says Pinfold.

He would like to see government introduce a programme that allows for smaller brands to assemble cars and bakkies for a fixed period under a more relaxed set of rules.

“At the moment, it is impossible to compete,” he says. “What would a step-in programme achieve? Well, it could offer some incentives to build volume and eventually enter the new APDP (Automotive Production Development Programme), which pledges support for assembly at an annual plant level of 50,000 cars and bakkies, or more.”

Government’s truck-

We are by far the biggest

Chinese brand in South

Africa and are no longer

compared just in terms of Chinese companies

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specific assembly support programme, in the process of being redrafted, allows for support for small-volume truck plants with their much less complex assembly processes and local content.

“There has not been a new local manufacturer in South Africa for years. Why? It is because it is too difficult to compete. We would like to manufacture locally. We could then compete with the manufacturers on an equal footing. We could create jobs and get some benefits – South Africa is a springboard to Africa,” Pinfold says.

“It is difficult for a completely built-up importer like us to compete with local assemblers, as government support programmes allow them to import vehicles at almost no duty.

“There have been proposals to solve the issue, like for instance, the development a multi-model East London plant, an idea put forward by the East London Industrial Development Zone. I don’t like that idea and don’t



think it would work. For one, how do you convince your parent company to build vehicles in a plant where competitor vehicles are going to be manufactured? It is very, very difficult. We need a level playing field. If government is serious about what they have been saying, they need to have a step-in programme – it will assist small-volume sellers to start manufacturing vehicles locally. Our parent would encourage us to manufacture locally, as SA could be used as an export base for the whole of Africa.

“The Chinese would love to get into full production – the South African market is the biggest market in Africa, so it has to be here really,” Pinfold explains.

CONGRATULATIONS GWM

Tel: +27 11 396 9040 Fax: +27 11 396 9050 46 Tulbagh Road, Pomona, Kempton Park 1620

www.onelogix.com

ON YOUR RECENT SUCCESS

Regardless of such challenges, GWM SA is ambitious and wants to get close to 7,000 unit sales in 2011.

“We are pleased with the figures we have attained thus far. Currently, it is difficult however to speculate whether we’ll achieve 7,000 unit sales or not. We are concerned by the global economy, the US, and what is happening in Europe – it is having an effect here in South Africa, least not in terms of the rand. It makes it more expensive to import. Europe is obviously in trouble and we are looking at what could be another global financial crisis. We hope to hit around 7,000 units this year. It might be ambitious given what I’ve just said, but we are hopeful.”

South Africa is GWM’s second-biggest right-hand-drive export market. SA ranks as the fourth-largest overall GWM export market, while Russia is the biggest.

For Pinfold, who has been active in the motor wholesale industry in South Africa for “many years”, it all started with a pick-up he

saw on a visit to China.“I immediately sought to secure the

local distribution rights,” he tells South Africa Magazine. “It took me many years to convince GWM to produce right-hand-drive vehicles.”

Today pick-ups remain GWM SA’s biggest sellers.

GWM currently offers the Steed 3 pick-up and newer Steed 5 for sale, as well as the recently launched H5 sports utility vehicle, which will soon see the introduction of a diesel derivative.

Pinfold is excited about the H5 sports utility vehicle, voted 2010 Chinese Green Engine of the Year, describing it as a “very up-to-date engine” in terms of performance and fuel consumption. “The H5 four-door five-seater petrol SUV is a stylish new vehicle, available for less than R210,000,” he says. “The beefy front engine, rear wheel driven 4x2 has a sporty front grille, elegant lines and 17 inch wheels to ensure a modern



Business Banking

appeal... the H5 also boasts additional comfort features and is perfect for everyday driving and scenic exploration.

“In South Africa, where SUVs now account for around 25 percent of new passenger vehicle sales, the H5 offers a more affordable 4x2 SUV alternative that is accessible to South Africans in the middle-income bracket.”

The Florid hatchback and the more muscled-looking Florid Cross, as well as the CB150 with its distinctive design, also form part of the GWM vehicle range.

New to the market will be the small C10 hatchback with a 1.5 litre petrol engine, which will be introduced early in 2012, according to Pinfold.

“There are plans for medium and large passenger cars as well, but only some time in the future.”

To learn more visit www.gwm.co.za. End

A s much as you might want to pretend otherwise, there

are people out there who want to steal from you or your business and damage property – they may even want to steal your identity. Worse still, they want to steal from your customers! You should be aware of this potential and take security measures to inhibit such people from achieving their

goals. Questions you may have include: Why would someone want to steal or damage your property? What types of harm can be done? Or what type of property security is needed?

Theft can have a highly damaging effect on your bottom line. In South Africa, shoplifting and employee theft alone cost retailers millions of rands. Addressing the problem can give you an important


Sim de Wet, head of Stallion Security property Services,

is a well-known personality and contributor in the

security industry. he talks to South Africa

Magazine about hedging risk and why security is vital.

By Ian Armitage

h E D G I N G Y O U R

competitive advantage. A recent study found that nearly three times the number of top-performing retailers use electronic article surveillance technology to prevent loss when compared with under-performing retailers.

Each time an item is stolen from a retailer, the retailer has to sell up to three additional items to make good the loss on the stolen goods.

Stallion Security property Services FEATURE

P R O T E C T I N G Y O U R

Midrand , Durban, Cape Town, Bloemfontein, Port Elizabeth

SHARECALL 0 8 6 1 G E O T A BW W W . G E O T A B . C O . Z A

Geotab™ is in the business of helping our clients increase revenue using advanced Fleet and Resource Management Technology.Company expenditure is drastically reduced by using advanced vehicle and personal tracking solutions, all of which use GPS satellite technology for exact position, true speed, routing and all stops.Backed up by Checkmate™, one of the most powerful ttracking and management software platforms available, the Geotab™ range of products provide our worldwide clients unmatched accuracy, reliability and savings.

We manufacture a number of different hardware platforms;

GO Engine™ is our top of the range solution with automatic reading of engine fault diagnostics in supported vehicles. The major advantage in this application is the early warning of maintenance issues GO Engine™ gives to the modern fleet user. GO Engine™ is available in both GO4™ & GO5™ platforms.

GO4™ is our advanced Fleet Management platform catering for fleet users that require an adaptive application that can monitor up to 8 auxiliary devices. GO4™ is designed for all fleet sizes, from a single vehicle to thousands of vehicles. GO4™ is a constantly live [real-time, as the vehicle moves] monitoring Fleet Management platform.

GO5™ is our standard Fleet Management platform designed as a cost-effective live solution. Identical to GO4™ in every way with the exception of auxiliary device monitoring, GO5™ conforms to 90% of fleet users’ requirements.

GO Recover™ is our Stolen Vehicle Recovery platform, used to recover vehicles and or cargo across South Africa. A total of 450 ground recovery crews operate 24 hours a day, seven days a week to ensure one of the highest recovery rates in the industry. Air recovery [using a fleet of helicopters] is available as an added cost option, when required.

Checkmate™ is our proprietary software suite of choice. The hardware platform [GO4™ or GO5™] in the vehicle communicates the vehicle’s position and activity to the Geotab™ central server farm via GPRS. This information is sent to the Checkmate™ software suite securely and provides instant access to fleet activity. Fixed monthly data packages allow for 24/7/365 connectivity, wwithout any additional charges being levied.

Added Value options, such as the integration of a Garmin device with GO4™ caters for on-the-fly routing, directly to a vehicle as and when required. A no-cost message option is available in the Garmin integration. Cross-Border travel in remote areas is managed by integrating the Iridium GPS [satellite] data modem allowing for data to be sent back to Checkmate™ iirrespective of how remote the vehicle is. Built-in accelerometers in both GO4™ & GO5™ allow for the monitoring of Driver Behaviour, in real time. A plethora of accredited auxiliary devices is available for GO4™.

Security, though, is everybody’s concern – from the homeowner that must ensure his home is equipped with sufficient physical and electronic security measures to a government’s defence force that must ensure that a country’s population is secure.

Johannesburg-based Stallion Security Property Services (SSPS) provides safety and security services to the office, office park and shopping centre “focussing on a specific niche market of the South African security industry”.

The company was started in April 1998 as part of the Stallion Group to concentrate purely on the Property Industry.

Managing director Sim de Wet, having come from Anglo American Property Services (AMPROS), has a very good knowledge and understanding of the industry, both from the Landlord’s viewpoint and the service provider’s viewpoint.

“SSPS has been built on sound and solid business ethics and principles and this has proved successful in acquiring and maintaining large and long-term contracts with blue chip clients,” de Wet says. “Building long term relationships based on trust, integrity and service is what any service industry should be all about. In order to achieve this, every SSPS client has direct access to the MD of the company at any time concerning service or complaints.”

SSPS’s current clients include, amongst others, Sasol Ltd, De Beers, JHI Property Managers, Discovery Health, Growthpoint Property Group, Broll Property Managers, Ericsson SA, Macsteel, OTIS, ERIS Properties, Fedbond Property Group, First National Bank, Standard Bank, Murray and Robberts, Zenprop Properties, Ntwhese Property Managers, Anglo American, Drake and Scull, Government Employees Pension Fund and the United Nations.

“Stallion Security Property Services

commits itself to deliver a well-disciplined guarding operation, ensuring that clients’ safety and security are our first priority,” de Wet says. “We prides ourselves on adding value to all of our clients. We spend a lot of time understanding the nature of our clients’ businesses so we can adapt our specialised safety and security services to meet their needs. Rendering supplementary services, at no additional cost, as an integral part of the contract that are not normally supplied by other service providers.

“Stallion is owner managed and therefore our business approach is to create close and long-standing partnerships with our clients, so that they are assured that their property is safe and that we have a well-disciplined operation that is always available. Furthermore, our property security service is



26552 SA mag ad stallion.indd 1 2011/10/05 5:51 PM

equipped with a fully trained management team, who dedicated to service clients with commitment, loyalty and professionalism.

“I’m a firm believer that security and safety cannot be separated if you want to provide the best service to your client.

“With this approach you bring a lot of added value to the client.”

A shopping centre, an office block, or any other working environment must be managed in terms of the Occupational, Health and Safety Act. The Act is complex and this is the one reason why many companies tend to separate safety and security.

SSPS and all its security officers are PSIRA (Private Security Industry Regulatory Authority) registered.

De Wet says there is now a softer approach to security at offices and shopping malls – the days are long gone where you could post an aggressive security guard at a shopping complex. Security guards are now “the first point of contact” when visiting a building; they’re more like ambassadors.

“To achieve this guards are selected for their appearance, communication skills and are trained in customer care and public relations.

“It is our policy to utilise available manpower effectively, either by promoting, or appointing the best-qualified person for the position. Wherever possible, we promote from within.”

De Wet says that the SSPS invests, on an ongoing basis, in the training and development of staff. “We conduct our own company induction training and ongoing refresher training


I’m a firm believer that security and safety cannot be

seperated if you want to provide the best service

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With an impressive 134 service hubs inside South Africa and Sub Saharan Africa, Siyaya can

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at the Learning Centre and provide our staff with on-site practical training on an on-going basis to ensure acceptable standards are maintained and constantly improved.”

All the training will be in vain if there is no proper supervision, de Wet stresses.

“We believe 24-hour supervision is vital in ensuring, through a pro-active and honest approach, our commitment to the client is achieved.

“A duty manager is on duty at all times and he co-ordinates and controls the activities of the officers on duty. Should an incident be reported at any one of SSPS sites, he is always available for immediate response and advice.”

De Wet adds that, if you cannot measure something, then you cannot manage it effectively. As a result,

all levels of management undertake regular meetings with clients.

“Our vision and motto is, “Creating Confidence” and “Making your Security Problems Ours”,” de Wet says. “When a client uses SSPS they no longer have a security problem, a security concern yes, but not a problem, as they pay him to make their problem his and this is the way SSPS operates.

“Confidence comes from always trying to do the right thing, at the right place, at the right time - the first time round. But when things do go wrong it is the absolute belief that we will investigate the problem, resolve the problem, have a post mortem of the problem then identify and implement steps to prevent reoccurrences. It is that trust relationship that creates the confidence. “

To learn more visit www.stallion.co.za/property. End


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Geotab™ and Stallion have had an association for a number of years, with the latest software suite, Checkmate™ 5.5 being put in place at Stallion earlier this year. The two companies have refined the system at Stallion [GO Live™] in such a manner that Stallion has immediate and constant access to all their vehicles as they are travelling around.

Geotab™ has local representation in 32 countries including North America, Australia, and various countries in Africa, the Middle East and Europe. With over 350, 000 vehicles monitored by Geotab™ we are acknowledged as being a force in our industry.

Corporate offices are located in Johannesburg, Durban and Cape Town with local offices situated in Port Elizabeth and Bloemfontein.

A technological leader and innovator in the fleet management industry worldwide, Geotab™ was placed 41st in the 2010 Deloitte Technology Fast 50™. This annual competition ranks the fastest growing technology companies in Canada, underlining Geotab’s commitment to technological innovation.

A typical example of this commitment is X-Act™, our patented positional technology that measures the position of a vehicle as it is travelling. In a recent study a 471 kilometre trip was independently measured and found to be 99.92% accurate, an astonishing achievement.

Our catchphrase – “You can’t manage what you don’t measure” is the mantra we live by.

When deciding on which fleet management system to adopt always consider that your business is not static and will change as it grows. Consequently a service provider that caters for this is a non-negotiable.

Why settle for standard reports when Geotab™ Reports Builder caters for customized reports to be designed, and implemented in a matter of minutes. Any auxiliary devices that are specified should be simple and add value, if it sounds too good to be true it normally is, and can lead to in-vehicle failure.

Tough and robust hardware is another absolute. Geotab™ has an in-vehicle failure rate of below 1%.

South African fleet management leader Geotab™ was formed in Midrand in 1998. A member of the Gerber Goldschmidt Group of companies we are financially stable and enjoy the reputation of being the supplier of choice with a number of global corporates, both here at home and across the globe.

All of our hardware platforms are designed and manufactured to cater for the harsh environment they are subjected to on a daily basis. Over the years our various hardware platforms have built the reputation of being ‘fit & forget’.

Our in-vehicle failure rate, measured since 1998, is well below 1%. All new devices are tested exhaustively before release to the market – GO4™ & GO5™ endured road testing in excess of 2 million kilometres prior to release.

Our hardware platforms use accelerometers as standard, allowing for the measurement of harsh driving behaviour – acceleration, deceleration and lateral movement are monitored continuously. The capacity to rate a Driver’s behaviour opens up a number of advantages, not least of which is the ability to acknowledge good driving habits

Should a vehicle generate a severe impact the hardware in the vehicle uploads Accident Data ‘Over The Air’ [OTA] automatically. This is linked to our Automatic Exception Notification function within Checkmate™ informing the relevant personnel in your organisation that an accident has taken place.

The Accident Data [GO4™ - 100 minutes of second-by-second movement data – 6,000 data logs] is available in real time allowing for the accident to be managed remotely if required.

From a maintenance perspective the GO Engine™ range of devices allows for the remote viewing and management of engine data, collected from the vehicles’ On-Board-Diagnostic computer [OBD]. This allows for the management of each vehicle’s preventative maintenance programme without the need to visit each vehicle.



A division of Transnet SOC Limited, Transnet Rail Engineering comprises a group of product-focused businesses, which manufacture, upgrade, convert, repair and maintain railway rolling stock. The company also supplies spares and associated transport equipment.Edited by Ian Armitage

right trackO N T h E

T ransnet Rail Engineering (TRE) is the African continent’s largest rail engineering organisation by far. It supplies and maintains the rolling stock used by

both Transnet Freight Rail, South Africa’s main-line freight railway operator, and PRASA, the Passenger Rail Agency of South Africa, the country’s passenger rail carrier. In the more recent past, it has been supplying both rolling stock and technical support services to South Africa’s neighbouring states such as Botswana, Namibia and Angola among others. For example, TRE landed a recent contract to potentially build 3,000 new wagons for Riversdale coal mine at Moatize in Mozambique.

“Our strong position has been achieved through the leveraging of core competencies and strategically positioned factories and maintenance facilities in the key transport corridors,” says TRE CE Richard Vallihu. “TRE is a leading South African supplier to the railway industry through its ability to manufacture, upgrade and refurbish rolling stock and rail-related products. Our principal objective is to meet and exceed all our commitments and obligations to our partner companies in the rail industry.”

TRE began its operations almost a century ago as the Mechanical Engineering Workshops of the South African Railways and grew in unison with the expansion of railways in the region.

By 1990, when its owner, the South African Transport Services re-registered as Transnet Limited, Transnet Rail Engineering was formed as a separate division and now operates as a portfolio of eight national product-focused businesses: namely Locomotives, Coaches, Wagon, Foundry, Rolling Stock Equipment, Rotating Machines, and Wheels and Auxiliary.

As much of South Africa’s rolling stock was very old, the introduction of new technology was an urgent priority. Much of the earlier technology was no longer supported with spares and repairs were becoming problematic. TRE undertook various remanufacturing programmes where, particularly, locomotives were stripped completely and rebuilt to new condition once more. However, these remanufacturing initiatives also allowed TRE engineers to upgrade the technology at the same


TRE FEATURE

the weight of the unit and is fitted with self-steering HS type bogies for high speed, high stability and extended wheel life. The load compartment is manufactured from 3CR 12 corrosion resistant steel, which provide superior life in excess of 20 years. The iron-ore line has also had 100-ton payload wagons developed for it.

Riversdale / Rio Tinto Mozambique, has made TRE’s Uitenhage Centre the supplier of choice for a wagon fleet to carry the Moatize coal. An initial order was placed for 200 tippler coal-wagons to carry coal to the port of Beira. Each wagon weighs 21.5 tonnes and has a 71 cubic metre carrying capacity, which translates to a payload per wagon of approximately 61.5 tonnes of coal. To ensure the wagons deliver long service lives, Uitenhage is manufacturing the load-boxes from corrosion and abrasion-resistant 3CR12 steel.

More recently TRE has been designing and building new wagons types. Fertiliser manufacturer Omnia has expanded its production capacity and consequently now needs more tanker wagons. The contract for the manufacture of 120 ammonia tanker wagons by TRE’s Germiston Centre was signed in June 2010.

The new ammonia tankers are capable of carrying 3,000 litres and will have an axle loading of 20 tons. These 18-metre-long wagons will have a maximum tank diameter of 3.2 metres. The tanks will be constructed of special boilerplate material, which is intended for use on high-pressure vessels.

While manufacturing new wagons is important, keeping them


TRE FEATURE

time, replacing older analogue-type control systems with modern microprocessor based systems. Attention was also given to driver comfort with the refurbished locos being fitted with air-conditioned, ergonomic cabs in order to alleviate driver fatigue.

During the 2010/11 financial year, TRE successfully built 50 Class 39/200 ”as new” diesel locomotives, which are now running on TFR lines. TRE is now busy with the build/assembly of ninety class Class 43000 GE locomotives, a project that is going according to programme. For the first time, TRE is building under-frames and bogies – new technology that has been brought into the organisation, explains Vallihu.

And then the demands of South Africa’s high profit railway lines, the coal and the iron-ore export lines saw the development of new, higher payload wagons. In South Africa, more than 100 million tons of coal and iron ore are transported every year on some of the world’s longest trains comprising wagons that are designed, developed, manufactured and maintained by TRE.

For example, the CCR11 wagon is a purpose-made 1,067mm gauge, bulk-coal heavy-haul gondola wagon capable of carrying an 84-ton payload.The wagon features a monocoque design to reduce

headquartered in Isithebe, Powertrans’ combination of sales, service and efficiency puts it at the forefront of the automatic transmissions and engines market. Over the years, the business has continuously expanded, growing its service offering, reaching out to a greater number of clients in a mix of industries. Today, in fact, says company MD Raven Naidoo, Powertrans even designs and manufactures its own tractors for the Agricultural and Construction Industry.

But, this is a company that keeps its ears to the ground... always... guaranteeing clients the best support, competitive prices and excellent quality.

Powertrans does more than supply industry with a vast range of superior quality engineering components, it also provides the technical resources needed to keep machinery operating at an optimal level. It services, among other brands, Mercedes-Benz, CAT, Deutz, Kirloskar, ADE, Perkins, Sisu and Mitsubishi - it is no surprise it’s

South African-owned manufacturer and supplier Powertrans strives to offer its clients the “best value solutions”. This has been the driving force behind many successful years of business.

poWERTRAnS

To learn more please contact Tel: (032) 459 1561Fax: (032) 459 1202

Email: [email protected] www.powertrans.co.za

53www.southafricamag.com 53www.southafricamag.com

motto is “sales and service”.

The company’s vision is to be “a powerful force in the engineering industry”, providing superior technical solutions to its customers. This will be achieved through its quality products and the best technical skills available.

Powertrans, which is heavily involved in the repair and rebuilding of all types of heavy-duty automatic transmissions and engines for earth-moving equipment, brings in a turnover of R30 million a year.

“Powertrans services and supplies many customers in a host of different industries,” Naidoo says.

Beside its Durban branch, Powertrans has another branch operating in Richards Bay.

“We are constantly expanding and growing our involvement within the industry,” Naidoo adds.

Powertrans currently employs just over 100 employees at its main branch in Isithebe.

in service is equally imperative. TRE recently opened a new R120 million South Dunes Wagon Maintenance Depot, which was officially handed over in July 2011. The state-of-the-art facility was built to service an increasing demand for wagons.

“This opening signifies progress and movement after expansion of the port left us unable to grow our repair business,” says General Manager: Wagons, Peter Cona. “Not only is the depot the newest and best, it is extremely well equipped and laid out. Richards Bay is one of our two most productive depots, maintaining some 6,000 of our fleet of over 7,000 coal line wagons.

“This goes beyond mere job creation and capacity building. We are at the same time up-skilling employees to maintain the new technology. The depot has high performance standards and can compete with any in the world,” he adds.Transporting passengers is also a priority for the South African

governments Department of Transport. Here TRE is playing a dynamic role taking out of date suburban coaches and fitting them upgraded body shells, constructed using a modular design with complete stainless steel sides, ends and roofs.

A TRE success story, the 10M5 commuter coach has been developed to be South Africa’s principal short distance passenger transporter. Its interior capacity has been designed to carry the maximum number of passengers in uncrowded comfort.

The construction of the 10M5 combines affordability and reliability with quality manufacture. Its durable, vandal resistant interior is constructed of fire retarding material. For additional passenger safety, the doors are fitted with a driver-controlled interlock system, to ensure they stay closed while the coach in motion.

Also, responding to a more recent need for an executive standard passenger unit, TRE developed the Business Express short haul passenger coach. Its interior is tasteful yet comfortable, but at the same


This opening signifies

progress and movement

Tel: +27 11 369 0600email: [email protected]

www.velavke.co.za

Vela VKE Consulting Engineers has made a significant contribution to the development of South Africa’s rail network through its experience in railway design and construction as well as broader expertise in tunneling and major bridges.

time designed to be hard wearing. This ‘office on rail’ is fitted with a dedicated area with 220 volt AC power to accommodate laptop computers. Other services in this coach include Internet connectivity and wi-fi, and restaurant-quality coffee on tap.

For the long-distance train traveller, TRE has developed the main line coach. Here a typical trainset would consist of sitter coaches, sleeper coaches, catering coaches and a coach to house a generator. The trainset is supplied with 220 volt AC power, and the level of comfort is calculated to avoid passenger fatigue. TRE has also adapted this type of coach to have either conference or hospitality facilities built in.

In all of its activities, TRE places the safety of its employees and anyone else involved with the company above all else. Leading by example, Richard Vallihu cautioned against complacency and stressed the need to improve safety standards.

The aim of maintaining TRE as a safe efficient world-class company is being driven with relentless vigour by its top management. To enhance efficiency, TRE has invested millions of rands in the Lean Six Sigma manufacturing system, which is now in its fourth year of implementation. The system has been inculcated into every level of TRE, mainly through the Letsema system, where groups of workers are allowed, and expected, to manage their own specific aspect of the production process. Also, through the Letsema structures, TRE has been training hundreds of people to cut out waste in the manufacturing processes and to continuously improve systems and efficiency.

Five years ago in 2006, the international consulting firm McKinsey & Co. was employed by Transnet to look at world benchmarks with a view to upgrading the local operation.

ABOUT TRANSNET

TransnetSOCLtdisSouthAfrica’srail,portandpipelineparastatal,headquarteredintheCarltonCentreinJohannesburg.ItwasformedasalimitedcompanyonApril1,1990andisresponsibletotheDepartmentofPublicEnterprises.

ThebusinessunitsofTransnetare: TransnetNationalPortsAuthority TransnetPortTerminals TransnetPipelines TransnetFreightRail TransnetRailEngineering TransnetCapitalProjects

TRE FEATURE

PHAHAMA SYSTEMS DEVELOPMENTLocated in the heart of South Africa's Silicon Valley, Centurion, Phahama Systems Development (Pty) Ltd (PSD) provides a full range of services from engineering development and prototyping to systems assembly. PSD is a turnkey electronic manufacturer, offering a complete solution - from Component sourcing and procurement to Surface Mount and Conventional Assembly, as well as Final Assembly and Test. We excel in design, engineering services, prototyping and manufacture of products, and provide a provide a high speed prototyping service with quick turnaround times for medium productions.

PSD has 15 years experience in the Rail Engineering field, including redevelopment and turnkey systems and is capable of doing testing and maintenance on various railway industry products. We also use the latest Automated Optical Inspection machines to ensure the highest possible quality of all products to IPC610 class 3 and 2 requirements.

We are committed to meeting your needs.

PSD aims to serve customers in a way that will surpass any other competitor.

SERVICES:

Complete Turnkey manufacturing, Design and R&D engineering • Circuit, PCB and product design.• PCB Layout and design.• PCB 24 Hour prototyping services.•• System upgrades.• Product testing. • Technical advice on component obsolescence and re-design. • Embedded software. • Power systems.• Fine Pitch Surface mount technology.

Latest and cost-effective Latest and cost-effective assembly techniques • Low volume to medium volume through put.• Fully automated SMD Line (with ± 22,000 placement per hour, including BGA'S).•• General assembly as well as precision fine pitch work.• Perfect quality assisted by our SMD vision inspection system.• Low to medium scale production.• Lead-free compatible re-flow oven.• DEK 248 full vision system.•• Zelfex universal stencil frame.

Population of single sided and double sided boards • Population of single sided and double sided boards• Population of complex multilayer boards• Assembly of SMT and through-hole boards

Other Services Other Services • Parts Procurement and Store Management• PCB and Product Assembly• Test• Quality Control• Rework

Telephone: +27 12 665 4750 Fax: +27 12 665 4755 www.phahama.com

PHAHAMA SYSTEMS DEVELOPMENTLocated in the heart of South Africa's Silicon Valley, Centurion, Phahama Systems Development (Pty) Ltd (PSD) provides a full range of services from engineering development and prototyping to systems assembly. PSD is a turnkey electronic manufacturer, offering a complete solution - from Component sourcing and procurement to Surface Mount and Conventional Assembly, as well as Final Assembly and Test. We excel in design, engineering services, prototyping and manufacture of products, and provide a provide a high speed prototyping service with quick turnaround times for medium productions.

PSD has 15 years experience in the Rail Engineering field, including redevelopment and turnkey systems and is capable of doing testing and maintenance on various railway industry products. We also use the latest Automated Optical Inspection machines to ensure the highest possible quality of all products to IPC610 class 3 and 2 requirements.

We are committed to meeting your needs.

PSD aims to serve customers in a way that will surpass any other competitor.

SERVICES:

Complete Turnkey manufacturing, Design and R&D engineering • Circuit, PCB and product design.• PCB Layout and design.• PCB 24 Hour prototyping services.•• System upgrades.• Product testing. • Technical advice on component obsolescence and re-design. • Embedded software. • Power systems.• Fine Pitch Surface mount technology.

Latest and cost-effective Latest and cost-effective assembly techniques • Low volume to medium volume through put.• Fully automated SMD Line (with ± 22,000 placement per hour, including BGA'S).•• General assembly as well as precision fine pitch work.• Perfect quality assisted by our SMD vision inspection system.• Low to medium scale production.• Lead-free compatible re-flow oven.• DEK 248 full vision system.•• Zelfex universal stencil frame.

Population of single sided and double sided boards • Population of single sided and double sided boards• Population of complex multilayer boards• Assembly of SMT and through-hole boards

Other Services Other Services • Parts Procurement and Store Management• PCB and Product Assembly• Test• Quality Control• Rework

Telephone: +27 12 665 4750 Fax: +27 12 665 4755 www.phahama.com

As new technology is fundamental to the advancement of its business, TRE works closely with original equipment manufacturers (OEMs) and railway engineering specialists across the globe. State-of-the-art and best engineering practice are incorporated into its growing product portfolio and – in addition to its own in-house design office – TRE has access to other specialist design companies to acquire the blueprints for developing new rolling stock. Many of its plants have received ‘Centre of Excellence’ awards and accreditation by OEMs, while its products are marketed worldwide.

Transnet Rail Engineering strives to delight its customers and to exceed the expectations of the rail freight industry.

“The processes of manufacture and overhaul are as important as the product itself and Transnet Rail Engineering is not only committed to increased research and development but also to invest in new production equipment, infrastructure and training of its personnel. This also includes a fully integrated computerised SAP driven system of control extending to all activities.”

Through six well-equipped, ISO-certified factories and, with a workforce of 13,000 qualified personnel, TRE extends its railway customer portfolio to Africa and the world.

To learn more visit www.transnet.net End


TRE FEATURE

This gave rise to the Vulindlela process, which required that TRE meet certain operational benchmarks by the 2010/2011 financial year. Today, TRE is proud that it has met, and in many cases, exceeded these targets. The two principal measures for the Vulindlela campaign were to reduce the ‘faults per million kilometres’ score and increase the availability of rolling stock to percentages in the high 90s. To put that in perspective, globally, availabilities of 95 percent are what many rail networks set for new locomotives. Because the locomotive fleet in South Africa is between 30 and 50 years old the targets were adapted slightly. In spite of this handicap, TRE manufactured and maintained rolling stock is achieving reliability figures that exceed accepted benchmarks for rail in the rest of the world.

“To achieve these results has taken huge commitment from our people,” says Vallihu.

“PSD was established in 1994,” says Derick van Basten, 54, CEO for the group of companies including Central Circuits, Phahama Systems Development and Central Electronic Technologies. “Since then we have grown the number of products that we are the approved supplier of to Transnet Rail Engineering (TRE) to more than 200. The latest edition is the IGBT chopper replacement where we are the main contractor in the consortium of three companies.

“We also source and supply components to TRE. We also introduce various improvements the various railway systems.

“We have a good relation with TRE and we are also the only local company supplying them with all the different controller cards for the different locomotives,” he adds. “Our niche market is in high voltage applications specifically the railway environment, which is an extremely dirty (electronically wise) environment.

“Many years of experience and dedication will bring success in such markets.”

PSD is currently doing research and small-scale prototyping on a complete integrated, dynamic test bench for locomotive controller systems.

Located in the heart of Centurion, South Africa’s Silicon Valley, Phahama Systems Development (Pty) Ltd provides a full range of services from engineering development and prototyping to systems assembly. It is a PCB assembly manufacturer, offering a complete solution, from component procurement to surface mount and conventional assembly, as well as final assembly and test.

For more information please contact: Tel: +27 12 665 4750 Fax: +27 12 665 4755

www.phahama.com


This will enable the user to test the complete electronic system as a whole and to identify faults up to component level on any sub-system or electronic card assembly. In conjunction with this, it is developing a generic controller system that can be used on different fleets.

“Our market strategy is to identify potential future problem mainly due to the availability of old technology and components,” van Basten says. “In such cases we will do a feasibility study, limited research and design to be ready when the potential problem becomes real. Another strategy is to take the problem of our clients shoulder and to solve it.”

PSD has been in the railway market for more than 15 years and will keep on focusing on this market due to our superb expertise and opportunities in this market.

phAhAMA SySTEMS dEVELopMEnT


T O TA L S O LU T I O N

T O T A L S O L U T I O N

I N Acan

Long established as the top name in South African metal

can production for the non-beverage market, nampak

divFood is facing emerging competition and export

challenges with confidence, says divisional managing director Ephraim Msane.

By Colin Chinery

E ach year Nampak DivFood, South Africa’s leading food and

diversified can supplier and All in One solution provider to the industry sells an impressive total of almost one and a half billion food and diversified cans into the domestic market. Worldwide it supplies into 35 countries.

This is the Nampak ‘Can Do’ spirit; signed, sealed and delivered.

“Over the years we have developed skills ranging from packaging design to production and customer support. And customers put great value on the depth of our experience. We have the largest packaging R&D facility in South Africa if not the southern hemisphere, and we keep a very close eye on what is happening in the global packaging sector,” says divisional managing director Ephraim Msane. “Put all this together and it clearly gives us the edge.”

Manufacturing and marketing a diverse range of high quality two-piece and three-piece cans, Nampak DivFood’s portfolio includes a comprehensive choice of plain and lacquered ends, full-aperture tinplate easy-opening ends, and peel-offs. All manufactured to exacting requirements from largely local tinplate.

And as one of the few metal can manufacturers

nampak divFood FEATURE


producing tinplate and aluminium aerosols worldwide, Nampak DivFood tailor-makes aerosols in varied sizes and shoulder profiles. With designs printed in high quality detail, brand image – a Silent Salesman – is enhanced, leaving an impression of product quality in the eyes and minds of consumers. Nampak DivFood also shapes its aluminium aerosol cans - an advantage in a market where packaging shape is perceived to be uniform across different brands.

In collaboration with Nampak Research & Development, Nampak DivFood cans are backed by cutting-edge materials, food technology and microbiology laboratories. These world-class facilities play an integral role in providing microbiology and spoilage investigation, thermal process validation, new materials and shelf life evaluation, container physical testing, hygiene audits and other canned food must-haves. A complete and



We aim to provide our customers with

total packaging solutions that

strike the optimal balance between

high container performance,

safety, and low price

Before

After

Inks and coatings to Nampak DivFood

Printing Ink Specialists

A Proud supplier of

EAGLE INK SYSTEMS KZ NATAL (PTY) LTDA SUBSIDIARY OF EAGLE INK HOLDINGS (PTY) LTD

11 The Avenue East, PROSPECTON 4110P.O. Box 74079, ROCHDALE PARK 4034

Tel: (031) 912-1928/39/44/49Fax: (031) 912-2034

E-mail: [email protected]: [email protected]

Adding value across the globeAdding value across the globeAdding value across the globe

www.alutrade.co.za Tel: 011 791 3339

Examples of the products we proudly supply to Nampak Divfood

ALuTRAdE on behalf of our partner factories & Alutrade congratulations to the nampak Team on outstanding accomplishments under difficult market conditions. We feel privileged to have a product range that allows us to supply products to a number of nampak facilities. To the team in Mobeni, thank you for your many years of support – we look forward to growing together with you in 2012.

In Vanderbijlpark we appreciate the opportunity to be of service to you this past year and look forward to building on our foundations and to introducing Retortable-peel-off-Lidding to the South African market in the near future.

At Bevcap we are in the early stages and appreciate the professional approach of the management team, we look forward to being of service to you in 2012.

To each of the nampak Team Members – Well done & thank you.

PPG Packaging Coatings is a leading producer of coatings, inks and compounds for the Packaging industry. We serve the beverage, food, cosmetic, personal care and pharmaceutical markets as well as the paint and chemical industries.

Through our technical expertise, our service excellence and with over 125 years of experience, PPG Packaging Coatings constantly adapts and develops versatile, innovative and high performance coatings with outstanding appearance.

www.ppg.com

highly professional supply chain management system enables its customers to reach their markets in record time.

Nampak DivFood has over 60 years experience in manufacturing plain and decorated metal containers, making it the acknowledged South African leader in aerosols, metal containers and decorative tinware.

Two modern design studios, equipped with state-of-the-art computerised design systems, complement DivFood’s design capability and provide customers with limitless decoration options for added shelf-shout.

Its promotional tinware includes beautifully finished tins celebrated for their designs and excellent print quality, offering a functional, visually appealing, durable and relatively inexpensive option for promotions and limited-edition product ranges.

As a creative and innovative manufacturer with access to the best international technology, Nampak DivFood is able to fulfil almost any customised requirement across wide market segments.

While competition in the past has been limited, new companies have recently entered the can-making sector and are attempting



PPG Industries is a leader in its markets, a streamlined and efficient manufacturer and operates on the leading edge of new technologies and solutions.

With more than 125 years of existence, PPG is today a global coatings and specialty products manufacturer with over two-thirds of our $13.4 billion sales in 2010 generated by our coatings activity. Strengthening the commitment to this sector, PPG went through multiple acquisitions in recent years, the most significant in EMEA being the Ameron acquisition in 2006, Sigma Kalon in 2008. They provided access to new market sectors in EMEA in Architectural, Marine and Protective coatings and increased our presence in Automotive, Refinish, Industrial, Aerospace and Packaging coatings businesses. It is our vision to continue being the world’s leading coatings and specialty products and services company, serving customers in construction, consumer products, industrial and transportation markets and aftermarkets. PPG has manufacturing facilities and equity affiliates in more than 60 countries around the globe.

Not only that, PPG is one of the world’s leading producers of packaging coatings. We supply innovative, high-performance products for virtually every end-use.

The metal packaging industry is becoming increasingly innovative. New shapes, novelty printing and distinctive decoration help brand-owners’ products stand out on the shelves. To make this happen, PPG Packaging Coatings is constantly adapting and developing coatings to be versatile, easy to apply, reliable and to achieve outstanding appearance.


PPG Packaging Coatings operates in Europe, Africa, Asia, Australasia and on the American continent. Our corporate R&D centre is located in Alison Park, Pennsylvania where chemists dedicated to the Packaging business focus on long-term projects. Our development laboratories are located around the world to respond to local market needs.

PPG Packaging Coatings’ products and services offer a complete range of solutions for the Beer & Beverage cans and easy-open-ends, food cans, aerosols cans, tubes, general line cans and drums, caps and closures and peel-ends markets. Our product portfolio comprises technologies for both aluminium and steel substrates, encompassing both internal & external coatings with products that combine superior performance at value-added costs. Also included are coatings designed for plastic tubes made for thermal and UV curing, combined with all the relevant application processes.

Since PPG Coatings South Africa has a unique manufacturing facility in Alrode, Johannesburg, we are well positioned for local value-add to PPG’s global cutting edge technologies. Our local access to PPG’s global research network and quality approach coupled with our local infrastructure and support makes PPG an essential business partner.

PPG Coatings South Africa have successfully supported DivFood and Nampak R&D with the development and implementation of the interior universal lacquer coatings system of fish, fruit and general line cans currently in use. This is just one way in which PPG supports their customers with quality systems, inventory management and the overall integrity of their cans.

www.ppg.com/packagingcoatings

to establish a presence. “This is probably the biggest challenge we have,” says Msane. ”Aside of course from the ongoing South African challenge of exchange rate fluctuations. Needless to say we continue to organise ourselves appropriately to meet this new competitive challenge and remain the leading supplier that we have been for years.”

Nampak DivFood is itself a direct exporter, selling can-making components and cans. “We have over 40 national markets throughout the world. South America and the Far East are major markets, and selling into Africa is a key strategic goal.

Welsh notes too the big push from client base to cut costs. “There are also environmental pressures. South Africa may be regarded in some places as Third World but in terms of the multinationals we deal with, South Africa is set the same standards as elsewhere in the world. So compliance with the same benchmarks on say re-cycle ability or carbon footprint are demanded and expected,



We have over 40 national markets

throughout the world. South America and

the Far East are major markets, and selling into Africa is a key

strategic goal

Metal pressing - Plastic Injection - Surface Treatment - Toolmaking Services

We offer our customers engineering solutions on metal and plastic components on medium to high volume production.

We are specialists in the field of high-speed progression tooling, metal pressings, Injection moulding production and surface treatment on high volume tin components.

We have been part of the Nampak Divfood operation for over 10 years, adding value as a supplier to their needs on high volume metal and plastic components.

We strive to offer our customers:We strive to offer our customers:• RELIABILITY• QUALITY• COMPETITIVE PRICING

Gem Manufacturers are committed to Broad-Based Black Economic Empowerment and are certified ISO9001:2008 under the SABS certification body.

309 Derdepoort roadSilvertonPretoria

South AfricaTel: +27 12 804 9124/5

Email: [email protected]

and we find all of these kinds of issues are coming to the fore in South Africa now. We have substantial investments in recycling initiatives, and because we intend to be in this business for a very long, long time we want to make sure that in the way we do business everything is as sustainable as possible.

“We want to provide the best quality and the best service for our customers, hence the investment in new equipment, new printing equipment for example that will give us faster turn-around time and better quality. We’ve also put in new end making machinery, again to give customers a better service and lower cost.” Over the years Nampak DivFood has shown that it will invest behind increased customer requirements. A good example of this is the addition of two lines to its aluminium aerosol can manufacturing capacity in the past three years.

“A main point is that we don’t just supply a can, which is what our competitors generally do,” adds Msane

”Basically they buy machines, make products and then sell them. They don’t, for example, spend much time with their customers to support their machines in terms of running their lines effectively. They don’t spend as much time explaining how their products behave in the can.

“Nampak DivFood on the other hand, gives full support in all these areas. So if a customer comes to us he receives not merely a view on which can to use or how it should be made, but advice all the way through to how his product is going to perform once inside the can.

“We aim to provide our customers with total packaging solutions that strike the optimal balance between high container performance, safety, and low price. And at Nampak DivFood we have the experience, expertise, innovative edge and strength of resource that no other local manufacturer can match.” End

I n the Rainbow Nation, Black Empowerment projects can be a façade, a blowout, or more often a scoreboard pass across a line from

scrape-by to outstanding. With the Motheo Construction Group empowerment fi nds towering achievement and a role model.

The inspiration of Soweto-born and former political exile Dr. Thandi Ndlovu, what began as a hobby saw her create Motheo Construction in 1996. Since then as developers, contractors and project managers Motheo has delivered over 34,000 serviced sites and 60,000 affordable housing units, translating into over R3 billion worth of affordable national housing stock.


It began as one remarkable woman’s hobby and in 14

years has grown to become a notable player in the

construction industry and an empowerment success story.

Director Tim Potter talks to South Africa Magazine about

the rise and vision of the Motheo Construction Group.

By Colin Chinery

Success B U I L T F O R B U I L T F O R Success B U I L T F O R Success Success

B U I L T F O R Other projects include the R70 million Orlando rail station close to the World Cup training stadium, and consortium partner for the new head office for the Department of International Relations in Pretoria, valued at R1.35 billion, with Motheo holding a 12.7 percent construction stake

“Our history is wrapped up in the delivery of low income housing and we’ve diversified out of that background into what I would call low-tech building and civil structures,” says MCG Director Tim Potter. “In terms of recognition as a player in the sector we are very well known, particularly in government circles where ninety per cent of our work is done.

“In terms of empowerment, Dr Thandi’s objectives are empowering not only Blacks but also females. We are 54 percent Black owned and 52 percent Black female owned. Currently we have nine shareholders, of whom six are Black female and we have two black female directors who are both executive in the business. In terms of senior, middle, and junior management we are meeting all the requirements to score full points on the Black Enterprise Empowerment scorecard. We are employing a workforce of around 1,000, and of these 20 are Whites. So Motheo is predominantly a Black company.”

Potter puts the national housing backlog at around two and a half million, and says part of the issue is straightforward but in human terms complex in its resolution. “If people are staying in traditional areas should they continue to live there if the world is urbanising?

“Obviously they need to live near their employment opportunities, so you end up with a scenario where those moving to work

opportunities end up congregating on the outskirts of major cities. The Government is trying as fast as it can go to accommodate this incoming mass but the required bulk infrastructure continues to lag.

“On the other hand you have those who are resistant to move, and instead try to eke out an existence where they have lived traditionally. Should municipalities in those areas be doing housing infrastructure development, or looking down the track and facing the inevitable and allowing people to move on?

“That’s the debate, but what is inescapable is that there are a lot of people to house. We are currently building four to five thousand houses a year, and could do a lot more if the Government had the delivery capacity to release the projects.”

Potter, a professional engineer with an extensive civil engineering background -including 18 years with Murray and Roberts – has been with the Motheo Construction Group since 1998. “We secure work in many ways - tendering for municipality property projects for example, as well as in the open market. We also negotiate contracts with clients who see us as a preferred contractor, and typically this occurs both in the private sector and with Government on the low income side. Work in this area is allocated

rather than tendered on price because it is based on fixed revenue - you advocate what product you will provide for the given amount of money.”

If construction figures are impressive, on-site subsidiary benefits can be incalculable. Collaboration and training involvement with local suppliers is one such area. “It’s a mindset and a process. We’ve probably worked with in excess of over 300 smaller

Motheo construction group FEATURE


We are very well known,

particularly in government

circles


Motheo construction group FEATURE

ALERT STEEL Established over 30 years ago, AltX listed Alert Steel provides various steel, steel-related products and services to the building industry.

With 19 operations in South Africa and Zimbabwe and a growing list of AlertExpress containers, the group is well equipped to meet the needs of its growing customer base.

builders, and hopefully we have left them construction and entrepreneurial skills that have helped them embrace new projects after we’ve moved on.”

New community cohesion is another. “Before starting a project we set aside two or three months, sit down with a local representative steering committee and agree what the processes and outcomes will be. We form a document, a social compact which says effectively, ‘this is how we’ve agreed to behave and this is the likely outcome’. If everybody plays to that piece of paper the project runs smoothly. If not you can guarantee that you will have a hiatus.

“This is probably a hallmark of why our projects have run so well. If you didn’t do this you would be foolish to start implementing them; you’d end up with endless debates about minor issues and everything coming to a halt.”

Success and a growing reputation for excellence and delivery can turn out to be a challenge however. “Having done quite a lot of work in a number of provinces, there’s always the sense that if you have had a lot of work you should make way for others. So yes, success can be an impediment to your future, and this is one of the things we are having to deal with.

“Regionalism is another – if you are not based and fully active in a particular province, preference is given to those that are. And as you grow a business you tend to centralise, in our case Johannesburg, with satellites operating in those provinces where we have significant work.

“Another challenge is the corruption issues that have become a trend over the past three or four years. You face the fact that if you take a moral stance then certain projects for which you are eminently suited will just not come your way. It’s like anything where you are dealing with government as a client. So you step back and look for other opportunities, and some of our movement into the private sector is as a result of this.”

Potter sees the private sector as one area of potential growth. “While Government housing projects should continue to provide a base load, our technical capacity is growing and this gives us the opportunity to work in other centres, particularly with parastatal and larger private sector entities.”

He is impressed by what he describes as the maturity with which the Group’s founder and Executive Chairman Dr. Thandi has approached the development of this business.

“She’s been in the firing line in regards to Empowerment and the ‘Is-it-Black-enough?’ and similar sorts of debates. Her approach has always been to blend empowerment with capacity. And in growing the business over these 14 years Motheo has demonstrated empowerment while at the same time delivering on projects and giving a quality product.

“Other models have said in effect ‘Go 100% Black’ to demonstrate ownership of the business. In some cases this has meant tokenism, with traditional White businesses

posing as Black businesses, or in other cases 100 percent Black businesses with inadequate skills and capacities. And that has resulted in failure. So since inception Dr Thandi has tried to walk the middle road, and over time I think it’s proved to be a successful model.

“As we transition from where we are now to a company that from an ownership perspective reflects South Africa’s demographics - and that’s the intention - I think her strategy will prove to be correct. By then this will be a business doing R1 billion a year, capable of tackling projects of considerable size, and a force to be reckoned with in the construction industry.

“Already the mark we have left in the country’s residential sector is that here is a fully Black empowered entity that delivers consistently on quality and deadlines. If governments are looking for innovative thinking, pilot projects and consistent performance, Motheo Construction Group has a lot to offer.” End

E dible oil, soap and candles manufacturer Sealake Industries was founded in 1972 by

Mahomed Rayhaaz Essack (Baboo). Since it’s inception, the

Pietermaritzburg-based company has grown to become one of South Africa’s largest popular producers of edible oils, soap and candles. As well as producing and packing its own brands, the company manufactures own label products

for some of the country’s biggest retailers, including Shoprite Checkers, Spar and Pick n Pay.

Sealake products are extremely popular with South African consumers, with particular standout brands including Win soap, Sunbrite Candles, Sunseed, Safa and Golden lite Cooking oils. All products are sold throughout South Africa, in both independent stores and national supermarkets. The company also has a successful export business, with its products being sold in many African Countries.

Over the past three decades, Sealake Industries has evolved and kept up with market trends, which is one of the reasons for the launch of its candle and soap


Family-run edible oils manufacturer Sealake Industries (pty) Ltd has been producing quality household commodities for nearly 40

years. General manager Farouk Vawda tells South Africa Magazine how the company became one of the leaders in the oil, candle and soap markets.By Jane McCallion

Affordable Quality

Affordable Quality

divisions in the 1980s. However, what the company is seeing at the moment is not so much a demand for radical innovation or new lines, but for responsiveness to customers’ economic constraints. “One of the main trends that we’re seeing at the moment as a company is the desire amongst consumers for more economical options when purchasing our products,” says general manager Farouk Vawda. “This has been

Sealake Industries FEATURE


One of the main trends that we’re seeing at the moment is the

desire amongst consumers for more economical options

76


particularly noticeable with regards to our cooking oils. Traditionally, we had produced 500ml, 750ml, 2Lt, and 5Lt bottle sizes. However, in recent years, we have also added 375ml, 1.5Lt and 4Lt volumes to our ranges.” By following this strategy, the organisation has ensured that, no matter whether the consumer wants to buy in bulk or only wants to spend a few Rand on a smaller bottle, there is a product that suits them.

The current economic turmoil has not just affected household budgets and consumer spending, but also the commodity markets, which, as you would expect, has had a distinct effect on Sealake Industries. “Our company is involved, at its most basic, in the manufacture of commodities,

in the sense that oil, soap and Candles are daily required items,” says Vawda. “However, the raw

materials that go to make these consumer commodities

are also commodities in their own right and it

is well known that the commodities

markets are particularly volatile after the 2008 economic crisis.”

To get an idea of how this affects manufacturers such as Sealake Industries, one need only consider the fact that the price of crude sunflower oil has risen from $1200 to

$1900 in 2008. The company

Our company is involved in the

manufacture of commodities,

the sense that oil, soap and candles

are daily required

items

www.southafricamag.com

1 Du Toit Viljoen Rd, Willowton, Pietermaritzburg, Kwazulu Natal, South Africa, 3201 Tel: +27 (0) 33 387 3212, www.qpet.co.za

Q- PET (Pty) Ltd is a major supplier of PET bottles and closures to SEALAKE INDUSTRIES. We are proud of our long and mutually successful relationship, which first commenced in 1994 with the conversion from PVC to PET bottles. Q-PET (PTY) LTD were also the preferred suppliers of PVC bottles at that time, our relationship therefore dates back to time, our relationship therefore dates back to the period, 1996.

Over this time period SEALAKE INDUSTRIES and Q-PET (Pty) Ltd have worked together in growing our respective businesses and today both companies can rightfully claim to be leaders in their field. The management and staff of Q-PET (Pty) Ltd have thoroughly enjoyed the partnership over the last 15 years and congratulate SEALAKE INDUSTRIES management and staff for reaching this wonderful milestone. We look forward to their continued support and assure SEALAKE INDUSTRIES that Q-PET (Pty) Ltd will continue to support and SEALAKE INDUSTRIES that Q-PET (Pty) Ltd will continue to support and provide our best service to them.

has sought to overcome these challenges through diversification “as well as introducing different sized bottles for our own cooking oils, which we have also worked with our clients to develop as well as launch new products in this range, which we did in July and August this year.” Currently, it is commissioning a brand new state-of-the-art crushing plant that will produce the highest quality of sunflower and soya oils.

Sealake Industries oversees all aspects of the manufacture of its products, from the introduction of the raw materials into the machines to the packing of the finished items. However, its supply chain does not stop there: The business also has its own distribution fleet. “We have a personal relationship with our customers, which is why we have always done our own distribution,” says Mahomed Obaid Essack, general manager of Sealake subsidiary Unity Food Products (Pty) Ltd. “In fact, this has been an area of investment


Sealake Industries’ subsidiary, Unity Food Products (Pty) Ltd, distributes “hELIOS PURE SUNFLOWER COOKING OIL”, a premium brand that is loved and enjoyed by all South Africans (and has been for over 60 years). Unity Food Products (Pty) Ltd has commissioned a brand new state-of-the-art margarine plant to cater for the growing demand of margarines and spreads for the baking industry. Brands include helios, Golden Lite, Ruby and Cresta.

MD, Mahomed Rayhaaz Essack (Baboo), won the 2010 “Supplier of the year - National Award” for Shoprite Checkers. This is another reason why hELIOS PURE SUNFLOWER COOKING OIL is South Africa’s NO.1 Brand.

We are suppliers of activated bleaching clays to the edible oil industries in South Africa.

We also supply flavours and fragrances to

various manufacturing companies, as well as Citrus Oils and Aromatics.

Zebochem is proud to have been associated with Sealake Industries for the past 13 years. We wish them every success in future growth

and development plans.

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for us; we recently augmented our fleet with 30 additional vehicles, including bulk tankers over the past two months.” The main advantages, he explains, are reliability and flexibility. “Outsourcing can bring about two problems. Firstly, delivery companies will not always have available the type or number of vehicles you need when you need them. Secondly, you become less responsive to growth. Finally, it also allows us to reduce our costs.” The business also assists with the delivery or return needs of its clients as well as the transport industry as and when

they need them. Over the next five years, the company is seeking

to expand its lead in the market in a number of ways. “One of the ways in which we are hoping to improve the business is through implementing eco-friendly initiatives in our production methods, which we are hoping to roll out over the next 12 months. We also want to extend these principles to our suppliers and encourage them to improve their sourcing and production methods as well,” adds Essack. “In the longer-term, we will work with our employees and suppliers to become one of the leaders in our industry. By this I do not necessarily mean the biggest company out there, but the best quality and the most diverse. We are looking now at how to grow our operations in size and in range while maintaining quality focus and it is this which will take Sealake Industries forward.” End


W hen it gained independence in 1975 Mozambique was one of the world’s poorest countries. Socialist

mismanagement and a brutal civil war from 1977 to 1992 made the situation worse. In 1987, the government embarked on a series of radical macroeconomic reforms designed to stabilise the economy. These steps combined with fiscal reforms, donor assistance and with political stability, led to dramatic improvements. However, Mozambique remained dependent upon foreign assistance, and many remain below the poverty line.

At the end of 2007, and after years of negotiations, the government took over Portugal’s majority share of the Hidroeléctrica de Cahora Bassa, S.A. (HCB) company, a dam that was not transferred to Mozambique at independence because of the agreement had with the Portuguese Government.

Mozambique paid EUR700 million for a 67 percent shareholding in HCB, which later increased to 85 percent, while Portugal holds a 15 percent stake. The deal brought closure to a decades-old dispute between the two


hidroelectrica de cahora Bassa, S.A. (hCB) is a Mozambique-based electric utility.By Ian Armitage

futureP O W E R I N G T h E

countries over the rights to the company.

An agreement to sell the remaining15 percent stake owned by the Portuguese state was signed in March 2010. However, the deal isn’t yet complete.

Under that agreement, the stake will be split into two equal portions and one will be transferred to Mozambican power company Companhia Eléctrica do Zambeze and the other handed over to Portugal’s REN – Redes Energéticas Nacionais, for later sale to Portuguese companies.

The deal was due to have been concluded by 31 December, 2010, but Portuguese financial newspaper Diário Económico recently reported that the process was at a standstill due to “considerable disparities” in the valuation of the project.

Negotiations were “on the right path” according to the Portuguese Foreign Minister, Paulo Portas, however. Speaking in July he said that a “relevant company” had shown interest in buying 7.5 percent of HCB, although he refused to name the company.

Mozambique’s energy minister, Aiuba Cuereneia said that the agreement was clear and that 7.5 percent of the stake had to be sold to Companhia Eléctrica do Zambeze but, according to media reports, he did not refer to the “disparities in the valuation of the project.”

Asked about whether the current economic and financial crisis in Portugal was affecting the sale of the HCB stake, Cuereneia said that the terms of the agreement were clear and added that, so far, “there has been no contact from the Portuguese government about this matter.”

HCB’s customer base includes Eskom, Mozambique Electricity Utility (EDM), ZESA, Zimbabwean producer and distributor of electricity, and other SAPP countries. Its main suppliers include ABB, Siemens, LNEC, Areva, Alstom and EFACEC. It is a member of Southern African Power Pool (SAPP), International Council on Large Electric Systems (CIGRE), Electric Utility Cost Group (EUCG), International Commission of Large Dams (ICOLD) and International Hydro Power Association (IHA).

The dam itself represents the largest in southern Africa and the Cahora Bassa Lake,

at 270 km long and about 30 km wide, and covering a flooded area of 2,700

square kilometres, is the fourth largest artificial lake on

the continent.

hidroelectrica de cahora Bassa FEATURE


The project to build the Cahora Bassa hydropower scheme began in 1969 and took about seven years to complete, with HCB focusing on generating, transmitting and selling clean electricity. During the Mozambican Civil War, the DC transmission lines were regularly sabotaged to the extent that 1,895 towers

current (HVDC) transmission system delivering electricity to the border of South Africa. As the civil war came to an end, HCB selected South African organisation Trans-Africa Projects (TAP) to carry out construction management, quality assurance and design support service for the rehabilitation of the project. Restoration



needed to be replaced and 2,311 refurbished over a distance of 893 km on the Mozambican side of the line.

The dam’s original construction plan had involved South Africa in an agreement that decreed Portugal would build and operate a hydroelectric generating station at Cahora Bassa as well as a high-voltage direct

For the first time in its history,

hidroeléctrica de Cahora Bassa, will hand over some of

its annual profits to the Mozambican government

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work began in August 1995 but was hampered by the combination of difficult terrain and areas populated with live land mines, while heavy rainfalls also impacted the programme to restore power lines.

Today, the Hydropower scheme that HCB operates on the Zambezi river contains five 415 megawatt turbines, with most of the electricity generated at Cahora Bassa being sold to the South African Utility company.

The Cahora Bassa hydroelectric facility posted profit of over 962 million meticals (some $31.14 million) in 2010 and paid dividends for the first time to the Mozambican government.

“For the first time in its history, Hidroeléctrica de Cahora Bassa, will hand

over some of its annual profits to the Mozambican government, its main shareholder,” the company said in a statement.

The company’s net profit in 2010 totalled, “962.472 million meticals,” and the dividends earmarked for the state, “totals US425.2 million,” the facility’s management said.

The Mozambican hydroelectric dam has said that this performance is a 30 percent rise in operating profit, which was achieved via an, “increase in the company’s profits and controlled rise in costs.”

Since control of Cahora Bassa was handed over to the Mozambican state, the company has contributed almost $100 million to Mozambique’s state revenues. End

The Mozambican hydroelectric

dam has said that this performance

is a 30 percent rise in operating

profit

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Botswana Railways (BR) is Botswana’s state owned

railway company.By Ian Armitage

T R AC K I N G T H E

M ost southern African countries are heavily investing in rail

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

Botswana is no different.In September, India’s Minister of

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

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

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

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

“Botswana Railways has a railway network that comprises of a main line which runs from Ramatlabama in the south and Bakaranga in the north, three

branch lines which connect Botswana Railways’ stations to the mines from which BR transports commodities, crossing loops, private and service sidings as well as station yards,” the company told South Africa Magazine.

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

“The Main Line comprises of long welded 50 kg/m rails, which are continuously welded on concrete sleepers with 50 kg/m turn out sets,” the BR said. “The Francistown to Sua Pan Branch line is made up of long welded 40 kg/m rails which are continuously welded on concrete sleepers with 40 kg/m turn out sets; and Serule to Selibe-Phikwe and Palapye to Morupule branch lines comprise of jointed 40 kg/m rails on steel sleepers with 40 kg/m turn out sets.

“BR signed an agreement with Ansaldo Union Switch and Signal, a company based in Queensland, Australia, to design and construct the signalling and telecommunications infrastructure for the entire

Botswana Railways FEATURE


BR network. BR and Ansaldo agreed to form a joint venture entity to carry out the maintenance contract of the signalling and telecommunications infrastructure. An agreement was also signed between BR and the Rail Project Group as represented by Ansaldo Union Switch and Signals,” it continued.

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

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

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

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

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

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

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

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

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

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

In October 2010, Botswana Railways started building a large shopping mall near Gaborone Station to add to its business model. It is projected to create thousands of jobs for Botswana, where unemployment and poverty are high. The shopping mall will create 3,000 jobs when in full operation.


Botswana Railways FEATURE

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“We understand the importance of job creation and expanding our brand,” BR told South Africa Magazine.

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

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


The Orange River area in Northern Cape is probably South Africa’s least acknowledged wine growing area. however, orange River cellars is working to change attitudes and increase awareness of this unique area and the quality wines it has to offer. By Jane McCallion

A R E G I O N O F

L ocated in Northern Cape, Orange River Cellars is a

co-operative comprised of five individual cellars growing wine grapes in the Orange River region. It was established on 23 December 1965, initially as a single cellar – Upington – with the first harvest taking place in 1968. Over the following decade, Groblershoop, Grootdrink, Kakamas, and Keimoes joined the organisation. Wines from all five cellars are blended at the Upington cellar and sold both in the South African market and internationally. Each year, the five cellars produce between 160,000 and 180,000 tonnes of grapes, which go to produce wine, fortified wine and grape-based spirits, and concentrated grape juice.

While the co-operative is fast being recognised as a prime wine producer, Upington cellars were originally erected as a spin-off from grapes that were used for the production of raisins. Initially, it produced distilled wine and shortly after added wine for brandy to its repertoire. However, it is over the past 20 years that business really took off, when the cellars became involved in the manufacture of its own drinking wine. Additionally, in 2009, Orange

River Cellars bought a grape juice concentrate factory from wine giant KWV, further widening its product and client base.

As well as making wine for clients such as wholesalers and supermarkets, it also sells under its own labels both domestically and around the world. Known as Orange River Cellars in South Africa and the UK, Star Tree in the USA, and Oranjerivier in the Netherlands, the wines are growing in popularity as the Orange River region gains recognition as a premier South African wine region. “This has actually been something of a challenge for us over the years,” explains Roos Visser, marketing director for the co-operative. “There is a saying that the Orange River area isn’t good for producing quality wines. Historically, this was perhaps true, but thanks to the efforts we have made in the region, this is no longer true – in fact it hasn’t been for many years. We have put a great deal of effort into our marketing as well as improving our vines and we are beginning to turn this misconception around, but there is still work to be done.”

Two of the ways in which Orange River Cellars has been working to combat this negative perception of the region have been the employment of viticulturists and the installation of state-

orange River cellars FEATURE


We have close to 700

farmers producing

grapes for our five cellars

Marco Pentz - one of the 22 winemakers at Orange

River Cellars

of-the-art equipment. The viticulturists – specialists in the growing and health of wine vines – ensure the quality of the grapes grown for Orange River Cellars. “We have close to 700 farmers producing grapes for our five cellars and we have to make sure that they are all growing to a uniformly high standard,” explains Visser. “From ten years ago we hired six viticulturists who visit all our farmers and help them get the best from their crop on a continuous basis, which helps us get the best from our wine.” From a technological aspect, Orange River Cellars has spent between R15 million and R20 million per annum for the past ten years on new equipment alone. New acquisitions include three centrifuges for the filtration of wine, installed over the course of the past two years, and cooling equipment in the bottling department. “The new cooling equipment has been quite a revolution. Five years ago, it would have taken us three days

to cool a 50,000 litre tank of wine to 0ºC. Now it takes just three hours,” says Visser. “This has been very important as we need to speed up production to meet the increasing demand we are seeing year-on-year.”

While demand for Orange River Cellars’ wines is growing across all sectors, one of the most interesting growth areas is China. “The Chinese Market is becoming very active in the buying and selling of more up-market, expensive and serious wines,” says Visser. “I think that the awareness of wine as a social drink amongst the Chinese people is increasing, which is leading to rapid market growth. As China is closer to Australia and New Zealand than it is to us, we do face competition from wine producers in these countries, however we are already selling our own wine under two different labels there and it presents great opportunities for us.”

Over the next five years, the Orange River Cellars is focused on increasing the


orange River cellars FEATURE

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amount of high-quality, higher-value wines. “Over the past five years, we increased our wine production from 34 million litres to 43 million litres per annum. Over the next five years, we want to take that up to 50 million litres. However, that is only a possibility if we can grow the market too,” explains Visser. “We will never produce wine if we aren’t certain that we can sell it, so we will be seeking to drive up demand and drive up our capacity in tandem with that.” The company will not be abandoning its other, cheaper products either. “We want to develop our grape juice cultivars so that they will produce more tonnes per hectare, as there is still a big market for grape juice concentrate both in South Africa and in the world.” Finally, the co-operative wants to build a closer relationship with its wholesale clients. “Two of the biggest wholesalers in the country are considering buying all their wine for brandy and spirits from us. This is a very exciting development for us as it will benefit all our producers in the future.” And as the popularity of wine from the Orange River region continues to grow, the fortunes of Orange River Cellars can only continue to grow with them. End


Soweto is no longer Johannesburg’s unwanted stepchild, as South Africa Magazine discovers.

By Ian Armitage

F I N D I N G AN E W B E AT

F I N D I N G A S everal years ago, the City of Johannesburg embarked on an intensive investment

focus on Soweto, which is starting to bear fruit.

Home to a million people, Soweto is set to grow even more. About 43 percent of Johannesburg’s population resides in Soweto and, with several high-density housing developments such as the Jabulani precinct underway, its numbers are set to grow exponentially.

Joburg property company FEATURE


The people behind the Jabulani Precinct, and development in Joburg for that matter – the Joburg Property Company (JPC) – talk to South Africa Magazine about the project in this Q&A, looking specifically at the Soweto Theatre, Soweto’s first professional performing arts centre.

South Africa Magazine (SA Mag): How much will the construction of the theatre cost? JPC: The theatre is expected to cost R150 million with R60million of that being from the developer.

SA Mag: When did construction begin and when is the theatre expected to be completed? JPC: Construction of the theatre started in June 2009; earthworks for the site were completed in

N E W B E AT

October 2009. It is expected to be operational by November 2011.

SA Mag: Once up and running, how is the theatre going to benefit Soweto? JPC:This will be the first professional performing arts centre in Soweto. Which will enable emerging and established artistic groups to showcase their talent in a 420 seat main venue.

SA Mag: Are there any theatre or arts groups already identified that will utilise the Soweto Theatre? JPC: We are certain that groups will be coming through as and when they need to use the venue once its complete at the moment we have not identified any groups to utilize the venue.

SA Mag: Can you please give finer details of what the theatre will comprise; e.g. state of the art equipment, type of stage, lighting, AV, seating, rehearsal rooms, etc? JPC: The design, which Architecturally presents a modern facade to its surroundings in the form of three brightly coloured boxes which were inspired by the theatrical “black box” concept, comprises of:

A420seatmainvenuewithanendstagefullyprovidedwithwingsandbuttress.

Twosmaller“blackbox”venuesof180and90seatsrespectively.

Agenerousindoorfoyerareawithcirculationtoallthreevenues.

Multi-levelchangerooms,storageroomsand“greenroom”.


Joburg property company FEATURE

Group Five is a diversified construction services, materials and infrastructure investment groupWe have the skills and experience to deliver any aspect of an infrastructural project, including concept development, manufacturing, construction and operations and maintenance. The group’s capabilities have been honed to deliver comprehensive infrastructure solutions to sectors that have a high potential.

Woodmead North Office Park, 54 Maxwell Drive, Woodmead, South Africa I

Tel +27 11 253 8400 I Fax +27 11 253 8492 I Email [email protected] I

Website www.groupfive.co.za

Interfacewithoutdoorcovered“plaza,whichwillserveasadditionalinformalperformingspace.

SA Mag: Soweto Theatre, I believe, forms part of the broader Jabulani Precinct. Tell us more about the precinct and what the finished product will look like? JPC: The Jabulani CBD Precinct was always intended to be the CBD of Soweto but remained, for much of the history of Soweto, little more than a vast void of vacant land in the heart of a growing population. Since 2006 Jabulani has begun to flourish and take its rightful place as Soweto’s CBD, with the inception of a number of significant developments, including the 320 million (40,000m2) Jabulani Mall and the 300 bed Jabulani Provincial Hospital. The Jabulani development will deliver over 15,000m² of retail, 20 000m² of offices and 3,500 mixed income residential units. 30 percent of the

residential units will be affordable units. The high density, pedestrian orientated development will include a high quality public environment focused on a public square and park adjoining the new theatre. It is valued at R3 billion when complete.

SA Mag: How much will be spent on Jabulani Precinct? JPC: To date over R20million has been spent on the Soweto Theatre.

SA Mag: Who was awarded the tender for the building of the Theatre?JPC: Jabulani Development Company, a BEE joint venture which is led by Inkanyeli Projects.

To learn more about JPC visit www.jhbproperty.co.za. End


With a pedigree stretching back over 200 years, Bosman Family Vineyards has a long heritage in the South African wine production industry. But while its history remains its

foundation, the company is now making a name for itself as a leading ethical producer, as South Africa Magazine discovers.

By Jane McCallion

Fruitful

F ounded in the 18th Century and located close to Wellington, Western Cape, Bosman Family Vineyards is a pioneering ethical wine producer. Growing over 50 varieties

of grape for research, cultivation and production purposes, its main commercial focus is chenin blanc, pinotage, shiraz and cabernet sauvignon. After a 50-year hiatus in wine production to focus solely on grape cultivation, the fi rst bottles of Bosman Family Vineyards own-label wine were opened in 2007 and continue to grow in popularity. Managing director, Petrus Bosman, is the eighth generation of the Bosman Family to run the company.

The idea of running an ethical business lies at the heart of Bosman Family Vineyards’ ethos. It is one of the few South African wine producers that can claim to run on a 100 percent fair trade basis across all its vineyards. “We are fully accredited by Flo-CERT, which allows all wines made from our grapes to be sold under fair trade labels across the world,” says Bosman. “This is renewed on an annual basis through a yearly audit by Flo-CERT. The auditing process is for us more than a chance to simply retain our certifi cation, though; we also see it as an opportunity to discover how we have progressed in the business at a social level and to identify which areas we can focus on for improvement.”

While full accreditation was not achieved until 2009, as Bosman explains the move to fair trade was a natural progression, rather than a revolution. “Being recognised as a fair trade producer had been a long standing goal for us and, as such, we had been working to fair trade principles for many years before gaining accreditation. However, it was once we had completed our BBBEE process that we were able to move forward with this.”

The BBBEE programme at Bosman Family Vineyards has been quite radical, going beyond simply ensuring that there is black ownership within the company. In 2008, the company completed the largest land reform in the South African wine industry. “In the late 2000s, the government of South Africa set a target for one third of all agricultural land to be in black ownership and we decided that

Bosman Family Vineyards FEATURE


we wanted to take a proactive approach to this challenge,” says Bosman. “We were really in a very fortunate position when it came to this project, in that we have employees whose families have been living and working with us for generations – some have even been here as long as my family. So there was already a great deal of trust established between us.” The land reform consisted of 430 hectares of prime vineyard, with half of it located in one of the most sought after wine producing regions in the country. “I think this shows how serious we are about the reform in that we included award-winning vineyards in the transaction,” he says. “But this whole exercise was not a separate project from our main business. While remain partners in the land and can help to continue its development, we also included shares in our cellar as part and parcel of the reform. This is where a lot of the value adding activities take place and so they benefit from the whole value chain, not just the acreage of vineyard.”

Employees at Bosman Family Vineyards receive a wide range of training, from job specific such as how to use specialist tools and machinery, to general agricultural skills like tractor driving, through to personal safety and wellbeing. Additionally, for those who have taken part in the land reform, training in general business skills and finance is also available. However, the benefits for employees offered by the company go far beyond just training. 95 percent of employees live where


We were really in a very fortunate position when it came to this project, in that we have employees

whose families have been living and working with us for generations

they work in property owned by the business. “Each or our estates has its own accommodation, which is set aside for our employees, with many of them having lived there for generations,” says Bosman. “It is offered rent-free for as long as the family is working for us and we also take care of sanitation, provision of water, electricity and waste removal.” The organisation also provides transport for workers’ children to the local primary school or, for the high-school aged, to the town centre, as well as transportation for employees if they need to work on a neighbouring farm. “We are also involved in social

welfare, including providing our workers with access to private medical care. We have a crèche for babies and toddlers up to pre-school, and a retirement home where we continue to look after our former workers after all the years of work they put in for us. We also support some recreational activities, including sports clubs like netball and rugby, and cultural activities like dance and music clubs.”

The future perspective of the company is very much in line with both its present status and its history, that is to say continuing as a leading ethical wine producer while also growing on a commercial basis. “Within the next five years we would like to see all the wine we produce labelled and sold as fair trade wine,” says Bosman. “We also hope to sell 50 per cent of the wine we produce under our own label, so raising our own brand awareness is a major medium-term goal for us.”

Well I’ll drink to that. End

Bosman Family Vineyards FEATURE

102 www.southafricamag.comwww.southafricamag.com

With almost 30 years experience working in South Africa and unrivalled expertise, conveyor belt and industrial tyre manufacturer Rema Tip Top is fast becoming the single

supplier of choice for heavy industry. By Jane McCallion

T I P T O PT I P T O PT I P T O PT I P T O PT I P T O PT I P T O PT I P T O PS E R V I C ES E R V I C ES E R V I C ES E R V I C ES E R V I C ES E R V I C ES E R V I C E

T i p T o p S e r v i c e

R ema Tip Top is a global company, originally founded in Germany in 1923 by the brothers Otto and Willy Gruber. The organisation began

operating in South Africa over 20 years ago and its South African headquarters is located in Brakspan, on the outskirts of Johannesburg. In addition to this central office, it also has five distribution branches around the country and has grown to become a leading service provider for the local mining industry.

At the heart of its operation is the manufacture, delivery and maintenance of conveyor belts, heavy duty, off road industrial tyres, and related components to clients throughout sub-Saharan Africa. “While we are an industrial service provider, and do provide to other sectors, the main industry in south and southern Africa is mining. So it would not surprise you to hear that our main customers include Anglo-American, Rio Tinto, BHP Billiton, Harmony Gold Mining and De Beers Group,” says Thorsten Wach, CEO of Rema Tip Top South Africa.

What has made Rema Tip Top so popular with such big international clients is its ability to act as a ‘one stop shop’ for not only their equipment needs, but also service, training and parts. “This gives us a distinct edge over our competition,” explains Wach. “While we may have one or two notable competitors in each of our business areas, there is no other company covering all these areas in the way that we do. So there might be conveyor belt manufacturers who compete with us in that area, but don’t make components. Then there are components manufacturers, but they don’t make belts. We have everything under one roof.”

There is also the company’s pedigree to consider; Rema Tip Top has had a permanent presence in South Africa since the 1980s and has its 90-year global heritage to draw on. “It is our expertise and wide product portfolio together that are what really make us different.”

Rema Tip Top FEATURE


T i p T o p S e r v i c eT i p T o p S e r v i c e

Maintaining this expertise is something into which Rema Tip Top puts a lot of effort. “One of the main challenges facing us as a company in South Africa is the shortage of skills and expertise here,” says Wach. “Of course this isn’t unique to us – it’s the main challenge for every business in the country. So we are very, very focused on providing complete and on-going training to our staff at all levels.” This emphasis

on continuous professional development has allowed the organisation to promote a strong culture of internal promotion. “We like to try and bring people up through the ranks once we have trained them, as we know they have the full range of skills that we require.”

As well as the manufacturing and delivery of items Rema Tip Top also offers servicing and maintenance as part of its ‘one stop shop’ mentality.

“Increasingly, mining companies are seeking to outsource more and more secondary activities, and maintenance is a key issue within that,” explains Wach. “This is a great opportunity for us; mines that want to outsource, don’t want to talk to lots of different companies, they want to speak to just one person. With our expertise, we are able to do that. We are about to talk to them


about total concept ownership, from the initial provision of the items through to maintenance and upkeep, and not just in one product area but across a whole system.”

The key to being able to successfully pursue these opportunities when they arise, says Wach, is through having a strong balance sheet.

“Only certain sizes of company can offer this kind of service. We are fortunate in that, because we are part of an international group, we have that strong backing.”

Another challenge facing Rema Tip Top is how to make its products as

green and environmentally friendly as possible.

Rubber, by its very nature, is more difficult to re-use

and re-purpose than other common industrial

materials such as steel. So, efforts at becoming more sustainable are

heavily focused on waste reduction. “As a manufacturer

and producer of rubber, it is our responsibility to try

and reduce wastage. A lot of our research and development is focused on achieving this, as

well as finding ways to make secondary products from the

waste rubber that we do produce,” says Wach.

Other initiatives used by the company outside of its manufacturing processes include the use of hydro-turbines to meet

some of the plant’s power needs. “We are also looking

at installing more efficient

machinery in the factory to reduce our overall energy consumption, while examining all our manufacturing processes to see if we can make them more efficient and less polluting.”

When looking to the future, Wach believes that the company’s continuing success lies in its commitment to being a ‘one stop shop’ for its clients. “As well as being able to supply our clients with all the parts it needs without having to look elsewhere, we will also be looking to move into full maintenance contracts, perhaps also for clients who don’t use us as a supplier but want access to our maintenance expertise.”

What is certain is that, with a reputation as a knowledgeable supplier with a broad portfolio and a client-focused attitude, Rema Tip Top has made itself indispensible to one of South Africa’s most important industries.End

Rema Tip Top FEATURE


Source Interior Brand Architects (Source IBA) is an interior architecture and design firm which offers a total design package across the hospitality, leisure, corporate, civic and retail industries.By Ian Armitage

A s o u r c e o f

inspiration

Source IBA FEATURE


S ource Interior Brand Architects (Source IBA), as the name reveals, is a specialist interior

architecture group whose approach to design is to remain internationally relevant, whilst drawing on Africa as a

constant source of inspiration.The group’s portfolio includes a host of

corporate and hospitality developments, such as 15 on Orange, The Westin Cape Town, Arabella Sheraton Kleinmond Spa,

Kempinski Mokuti Lodge, Park Inn by Radisson Sandton, Radisson Blu Hotel Port Elizabeth, Southern Sun Hyde Park, Virgin

Atlantic Lounge, Virgin Spa as well as offices for JP Morgan, Mastercard, Tebfin and Fusion

– all successfully completed using a unique methodology, which has become the hallmark of the Cape Town-based firm.

“In our view, a designer acts as a filter for various inspirations and ideas, creating something

unique and new,” says Jeremy Stewart, the firm’s founder. “We are inspired by Africa yes, totally, and other influences, and we believe our role or mission

is to create new, modern design styles, recognising all influences, such as European, classical, colonial

and African. But we aren’t copycats. We want something that feels unique.

“I see things as more of a methodology, filtering ideas, looking for what works, rather than a specific design or style.”

This method has worked well for Source IBA.“We set up the firm in 2002,” says Stewart. “At the time

we saw a gap in the market for South African and African design with integrity.

“Our brand originates out of the belief that Africa is a fountain of creativity and inspiration and today Source IBA operates throughout Africa, UAE and the Indian Ocean.

“We have studios in both Cape Town and Johannesburg, and the team consists of many multi–disciplined and talented staff members; it is the most talented team I have ever worked with.”

Despite the obvious success, Stewart doesn’t have an ego. And it isn’t all about him. He and his partners – Evon Smuts-Rogers in the Cape Town studio and Andrew Merrington

and Peta Bank in the Johannesburg studio –always attribute Source IBA’s successes to the team as a whole.

“A combination of interior design and interior architecture, Source IBA is involved in maximising the architectural envelope by designing from the inside out. Each designer plays a huge part in that.

“We have an ethos of doing the best work with the best brands, working on the right, challenging, project and that, I think, is what is behind our success – we push ourselves and strive for better; we never stop developing, pushing the envelope in interior design.”

Stewart has always had a passion for art and architecture and says that awareness of the services Source IBA offer has much improved over the last decade.

“Most people ask the question ‘what does an interior architect do?’ and they are always surprised by just how much goes into what we do and how far it goes. For us, the process starts early on, when we meet the architects and

come up with a design that starts from the inside out in an attempt to maximise the building’s functionality. I have to stress that we are not architects – we would never pretend to be and we’d never pretend we had the same skills as them, as we don’t; rather, we work with them to maximise a building’s potential.”

According to Stewart, a typical hospitality project would entail the developer and operator working out the size of building – how many rooms, etc.

The interior architects would then come on board and sit with the architectural team, developer, engineers and service engineers to develop a brief “to maximise the building’s potential”.

“We aim to get the most out of any space, which to achieve, means you have to work closely with the architects. In a hotel, for example, of which we have done many, it is all about making the most out of the rooms, which have to have a minimal footprint and be cost effective, all the while retaining a sense of spaciousness, ergonomics and that sort of thing.”

The guest’s experience is also critical to a project’s success, he says.

“It is incredibly important to think about how people interact with a particular space. Then, also in a hotel,


Source IBA FEATURE

there are the back-of-house areas and that sort of thing. Those areas have different considerations.

“In all, it is an interesting process that is much more than creative design – it requires a multilayered approach.”

Stewart is very proud of the work Source IBA does and is always on the lookout for new, challenging projects.

“A main criteria for deciding to come on board a project is that it has to be stimulating and challenging – a process that will teach us something.

“When Virgin approached us, for example, for the Virgin Atlantic Lounge, we had never done anything like it before and took it on wholeheartedly – for us the most exciting projects are types we have never embarked on before. We started by analysing the profile of a typical traveller and then set about designing a space that would suit their needs. In a space as stressful as an airport lounge, it is all about helping the traveller to chill out. It was challenging and very, very interesting.”

One thing Source IBA is renowned for is the way in which it helps developers maximise their budgets, without wasting

materials or money. It is this approach that has guaranteed long-standing and trusting relationships with the likes of the Rezidor Hotel Group.

As successful as Source IBA has been over the last decade, with projects in Mali, Zimbabwe, Nairobi and other African countries, the next few years could be even more satisfying for Stewart.

“We are expanding across Africa. When we started, I’d probably say 90 percent of our work was within the borders of South Africa. Now, 70 percent of our work is outside our borders. We work right across Southern Africa and the Indian Ocean islands. I’ve just come back from a conference in Morocco and there is still growth in Africa as whole. South Africa is a gateway to Africa and there is huge opportunity.”

To learn more visit www.sourceiba.co.za. End


Telecomunicacoes de Mocambique (TDM) is Mozambique’s telecoms parastatal.By Ian Armitage

Changing withT H E T I M E S

M ozambique is a fast-

developing economic nation. The country escaped the global economic crisis with barely a dent in its GDP growth, which is expected to stay above seven percent from 2011 onwards.

Following years of civil war, Mozambique is a country on a mission to develop into a 21st century economic powerhouse. Telecoms play an important role in that.

This has put pressure on telecoms parastatal Telecomunicacoes de Mocambique (TDM) to expand.


Telecomunicacoes de Mocambique (TDM)is Mozambique’s telecoms parastatal.By Ian Armitage

Changing withChanging withT H E T I M E S

Changing withT H E T I M E S

Changing with

M ozambique is a fast-

developing economic nation. The country escaped the global economic crisis with barely a dent in its GDP growth, which is expected to stay above seven percent from 2011 onwards.

Following years of civil war, Mozambique is a country on a mission to develop into a 21st century economic powerhouse. Telecoms play an important role in that.

This has put pressure on telecoms parastatal Telecomunicacoes de Mocambique (TDM) to expand.

TdM FEATURE


TDM’s past, present and future are intrinsically linked

to politics in the southern African country. The company was established

in 1981 following the termination of the Posts, Telegraphs and Telephones

(PTT) government agency. In late 2002 TDM became into a limited liability company and

was renamed Telecomunicacoes de Mocambique SARL. Today, the TDM Group of companies includes mCel, Mozambique’s first mobile operator (of which TDM owns 74 percent), cable TV provider TVCabo Mozambique (which it owns

50 percent of in conjunction with the Visabeira group), and TELEVISA (of which TDM owns 50 percent).

It also owns 100 percent of its subsidiary Teledata.“TDM is responsible for the provision of public

telecommunications service in Mozambique. It is also an Internet Service Provider,” the company told South Africa Magazine.

MOZAMBIqUE: GREAT OPPORTUNITYMozambique remains one of the poorest countries in the world. It is still emerging from the after-effects of almost two decades of civil war that devastated its infrastructure and economy.

Many parts of the country are yet to be cleared of landmines and Mozambique regularly suffers from devastating droughts and floods – all of which hampers the country’s development.

Despite these challenges, Mozambique is experiencing robust economic growth.

One industry which continues to attract investment is communications.


Mozambique was one of the first countries in the region to reform its telecommunications landscape, immediately after a long civil war ended in 1992. The mobile sub-sector has experienced excellent growth rates following the introduction of competition in 2003 between Vodacom Mozambique and mCel.

However, market penetration is still well below the African average. The expected launch of Mobitel as the third mobile network in late 2011 is expected to deliver a boost to subscriber growth in the sector but also drive the average revenue per user (ARPU) lower again, which had already stabilised following the introduction of mobile broadband services and higher tariffs.

The government is intent on introducing competition to the fixed-line sector as well, but it is unclear whether it will privatise TDM.

THE POWER OF THE INTERNETInternet usage in Mozambique has been hampered by the fixed-line infrastructure and the high cost of international bandwidth, but this market sector is now accelerating following the introduction of various kinds of broadband services including ADSL, WiMAX and 3G mobile, and the landing of two international submarine fibre optic cables in the country (Seacom and EASSy).

TDM is a shareholder in WIOCC, which is the largest investor in and operator of the EASSy submarine cable system.

“Through this TDM provides international connectivity to

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neighbouring landlocked East-African countries,” TDM told our reporter.

In June, broadband provider Seacom signed a master services agreement with TDM.

Seacom said the agreement would give the company and its customers access to the “largest and most distributed fibre-optic network in Mozambique”, as well as a diverse route into Zimbabwe and an additional border presence in Malawi and South Africa.

Seacom is best known for its submarine fibre-optic network system, which was launched on July 23, 2009. This network directly connects South Africa and eastern Africa with Europe and southern Asia, covering a distance of more

than 17,000km.Customers in Zimbabwe would be able to connect

to the Seacom system in Maputo, Mozambique, via Mutare in Zimbabwe, Seacom said in a release in June.

Seacom said the additional route through Mozambique would complement Seacom’s existing route through South Africa via Beit Bridge and provide Zimbabwean customers with resiliency (maintaining an acceptable level of service during faults and challenges to normal operation) and redundancy (backup systems).

“This agreement with Telecomunicacoes de Mocambique demonstrates our commitment to partner with established players to improve the range of service to customers while continuously expanding the reach of Seacom’s low-cost services into landlocked countries across the region,” Seacom chief executive Brian Herlihy said.

To learn more visit www.tdm.mz. End

TdM FEATURE


k E E P I N G

O i L e d B O T S W A N A

Shell oil Botswana has recently introduced

a more efficient, new fuel product that has a

formulation designed to provide motorists with extra kilometres at no

extra cost.By Ian Armitage

k E E P I N G

O i L e d

S hell is Botswana’s biggest oil company with a 35 percent market share. It is an important market for the global energy and petrochemicals giant, says the chairman of

Shell Oil Botswana, Boitumelo Sekwababe.“Shell is a global company with over 100,000

employees in more than 100 countries and territories, Shell helps to meet the world’s growing demand for energy in economically, environmentally and socially responsible ways.

“As a major player in Botswana’s economy, Shell recognises it has a role to play in the development of

Botswana beyond its core business operations,” he says.

Botswana faces a number of fuel challenges. It has a single source of supply - South Africa. SA refineries are old. There are pipeline and port capacity issues. And storage capacity is limited to 10 days supply.

“There are transport constraints and Botswana is a price taker,” Sekwababe adds.

These factors push prices up.To offset that, Shell invests

considerable sums in R&D.And it has good news to report.“We are to launch a new

product, New Shell Unleaded Extra,” Sekwababe says.

“The launch follows months of research into how best to mitigate customers from the global economic uncertainties and subsequent challenges.

“We are committed to delivering better fuels around the world and have been working to develop fuels to address motorists’ need for improved fuel economy and

to get value for money. Research has shown that our customers today want fuels that will take them further without having to pay more.”

The New Shell Unleaded Extra has fuel efficiency which, when used in combination with Shell Fuel Save

Shell oil Botswana FEATURE


We are to launch a new product, New

Shell Unleaded Extra. The

launch follows months of research

tips, can help reduce customers’ financial burden. Sekwababe says it also contains a triple-action

cleaning component, which helps to prevent the build up of mileage robbing deposits and supports vehicles to perform more efficiently. “The New Shell Unleaded Extra helps to protect valuable engine parts.”

Shell Oil Botswana has been a front-runner in introducing innovative products in the market. It introduced V Power to give motorists power at their command, and Diesel Extra that has an additive package to clean and protect customers’ engines. Shell is now replacing LRP with the New Shell Unleaded Extra petrol with fuel economy that gives the motorist extra kilometres at no extra cost.

The Minister of Minerals, Energy and Water Resources, Ponatshego Kedikilwe, who attended the launch, said the product will ensure that the country has access to reliable and affordable petroleum services.

He noted that research has been carried out to make the fuel as efficient as possible and congratulated Shell Oil Botswana for introducing a high quality fuel at competitive prices.

“This, I must say, is in consonance with my ministry’s vision of reducing carbon dioxide emissions and being environmentally friendly,” Kedikilwe said.

“Given soaring oil prices last year, high technology fuels such as the new Shell Unleaded Extra that has the ability to reduce consumption, as I am told, will contribute to the positive and sustainable growth of the country in an environmentally sustainable manner.

“The product is a high quality fuel, and comes to Botswana at competitive prices and the consumer is guaranteed extra kilometres at no extra cost.”

Kedikilwe said given the souring of oil prices last year, the new Shell unleaded extra would contribute to sustainable growth in an environmentally sustainable manner.

He commended Shell Oil Botswana’s track record as a leader in fuel innovations and energy solutions.

Sekwababe tells South Africa Magazine that, in terms of Botswana’s fuel future, developments like this are vital – yet, some hard truths must be faced.

“There are some hard truths,” he says. “There has to be a step change in energy use. There will be a growth in populations as growing economies enter their energy intensive phase. Demand increases

are expected as industry and infrastructure grows to match population growth. Supply will struggle to keep pace with that and there will certainly be reduced growth in easily accessible oil and gas. Also, environmental stresses will only increase. We face challenges in the management CO2 emissions and environmental degradations.”

Earlier this year, Shell agreed to sell a majority stake of its distributions and retail business in 14 African countries to private equity fund Helios and Vitol, a Dutch international oil trader, for $1 billion.

The transaction led to the creation of two joint venture firms that will “guarantee the availability” of Shell branded products, while reducing new investments by the oil giant in the most of its retail business in Africa.



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N’Dabeni Business Park,6 Inyoni Street, N’Dabeni,Cape Town, South Africa.

Telephone: +27 21 530 1220Facsimile: +27 21 532 0446

Johannesburg

Unit 3, 88 Loper Avenue,Spartan Extension 2, Aeroport,Johannesburg, South Africa.

Telephone: +27 11 387 1800Facsimile: +27 11 974 0406 www.sapplive.co.za

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South Africa Magazine Technical Specifications.pdf 1 10/5/2011 1:33:19 PM

Shell said one joint venture - 80 percent owned by Vitol and Helios - would own and operate its existing oil products, distribution and retailing businesses in the 14 African countries, with the potential to add five more, including Botswana.

Another company, 50 percent owned by Shell and 50 percent by Vitol and Helios, will own Shell’s

existing lubricants blending plants in seven countries and manage distributor relationships in each of the countries where the main venture operates.

“We believe that combining Vitol’s world class supply expertise and Helios’ deep understanding of the African operating environment with the Shell brand...will create significant new growth opportunities for the business,” Tope Lawani, Managing Partner of Helios

Investment Partners said in joint statement in February.

For Shell, the transaction has a number of benefits and leaves the headache of financing and day-to-day operations to partners.

In 2010, Shell indicated that it was exiting 19 African countries as it shifted its focus on the lucrative oil exploration and production business and cutting investments in the retailing business, which it said was profitable for only smaller operators.

Operations in five countries, which were earlier targeted for sale, including Botswana, Togo, Tanzania, Namibia and La Reunion, could be sold to the two investors “at a later date.”

“This is a good deal for our customers as well as for Shell,” Mark Williams, Royal Dutch Shell’s Downstream Director said a statement.

“We will significantly reduce our capital exposure in line with our strategy to concentrate our global downstream footprint, and

continue to provide the high quality Shell products that our African customers have come to trust and rely on over many decades.”

Western oil firms have been reducing their interests in an ever-changing market. Shell remains devoted to Botswana, however.

“We remain committed to Botswana,” Sekwababe says. End



We will significantly reduce our

capital exposure in line with our

strategy to concentrate our global

downstream footprint

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

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

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

NPO. Reg. No: 75773

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

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

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

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

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

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

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

Documents

SA Mag - Issue 19