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CRUNCH TIME! CAN THE SPRINGBOKS MAKE IT THREE? THE AFRICAN BUSINESS JOURNAL BUSINESS AND CULTURE Teachers in Africa POLITICS Water Wars COMPANY FOCUS Lubritene SEPTEMBER 2011 Volume 2 Issue 9 www.tabj.co.za IN THIS ISSUE

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Page 1: The African Business Journal Sept 2011 - John Pinching

CrunCh time! can the

springboks make it three?

The

AfricAn Business Journal

Business and culture Teachers in Africa

Politics Water Wars

comPany FocusLubritene

SePTeMBer 2011 Volume 2 Issue 9 www.tabj.co.za

IN THIS ISSUE ►

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

2 SECTION � Title

maerskline.com Proudly serving AfricaHow do we serve Africa? By delivering on time.

If you look at what Maersk Line has achieved in schedule reliability over the past years, you could almost say we’ve invented modern on-time delivery – in West Africa and around the world.

Why does on-time delivery matter so much? Because it enables you to plan with greater certainty and to serve your customers more reliably. Now that is something everyone can benefit from.

At Maersk Line, nothing would please us more than to help take your business to the next level of consistent on-time delivery.

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

R1124_Africa_African_Business_Journal_letter_AD3.indd 1 12-07-2011 21:14:20

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

eDiTOr’s note

Hi fOlks,

I hope you are enjoying a fulfilling summer

so far. Assuming you are, here’s another ray

of sunshine—a new edition of The African

Business Journal.

The front cover subtly suggests that

something big with a strange-shaped ball

is afoot. Yes, Rugby Union World Cup fever

is spreading. Crunching tackles, steaming

scrums, phenomenal footwork and try line

high jinks are the order of the day—why, you

can almost smell the antiseptic spray!

To celebrate the occasion I’m going to

look wistfully back at tournaments gone by,

while also forensically dissecting the most

threatening teams at this year’s jamboree.

Also, as the paint dries on goalposts in

preparation for the new season, we take a

look at African footballers who hope to add

some sparkle to the frantic cauldron of the

English Premier League.

This month’s edition is further proof that

the African economy is enjoying a renaissance,

with many industries experiencing a gradual

change of fortune, after some difficult

months. The companies we’re profiling cover

practically every walk of life from properties

and gardening to electronics and carbonated

drinks. We also take a look at mining

(naturally), cotton, fruit, motor vehicles and

many other industries to boot.

In addition, we have the next in our

series of Poprica (checking out more African

influenced music) and a study of how water

shortages may cause the next major war.

Before I dash, I must also alert you to

an exclusive interview with a chap who has

been teaching business studies in Egypt. Not

only has he been changing young lives for

the better, but there has also been the small

matter of a revolution to deal with.

Over and out,

John

maerskline.com Proudly serving AfricaHow do we serve Africa? By delivering on time.

If you look at what Maersk Line has achieved in schedule reliability over the past years, you could almost say we’ve invented modern on-time delivery – in West Africa and around the world.

Why does on-time delivery matter so much? Because it enables you to plan with greater certainty and to serve your customers more reliably. Now that is something everyone can benefit from.

At Maersk Line, nothing would please us more than to help take your business to the next level of consistent on-time delivery.

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

R1124_Africa_African_Business_Journal_letter_AD3.indd 1 12-07-2011 21:14:20

Page 4: The African Business Journal Sept 2011 - John Pinching
Page 5: The African Business Journal Sept 2011 - John Pinching

Sara Kopamees | Editor in Chief | [email protected]

John Pinching | Editor | [email protected]

Ben Watts | Staff Writer | [email protected]

Cory Wilkins | Editorial Assistant |[email protected]

Vladimir Lukic | Creative Director | [email protected]

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

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

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

Tanya George | Advertising Designer | [email protected]

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

Natalie Edney | Head of Sales | [email protected]

Khayyam Darr | Research Director | [email protected]

Andrew Miskin | Research Director | [email protected]

Brett Haigh | Research Director | [email protected]

Justin Lejuene | Research Director | [email protected]

Hugh Braithwaite | Research Director | [email protected]

Dee Nazer | Research Director | [email protected]

Michael Alexander-Jones | President | [email protected]

Linda Neal | Chief Executive Officer | [email protected]

Naveed Yusuf | Chief Information Officer | [email protected]

Gemma Parkins | Executive Assistant | [email protected]

South africa office

23 Wellington road

Parktown, 2193

Johannesburg

uK office

2 Sheen road

richmond

Surrey uK TW9 1ae

GEoRGE MEDIA InC.

TABJ Team

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

Table of cOnTenTs SePTeMBer 2011 | VoluMe 2 | ISSue 9

046cOVer feATure

news

speciAl repOrT

pOliTics

fOOD & Drink

Business & culTure

rugBy wOrlD cup 2011 Cruch time! Can the springboks make it three? 010

Muse business news coming out of africa 020

AfricAn fOOTBAllers africa’s premier exports 028

pOpricA! Part two 036

wATer wArs Could water worries spill into war? 040

TeAcHers in AfricA out of the comfort zone 046

sODA king Sparkling performance 052

cHilTern fArMs Core, what a lovely pear 060

uD Trucks Motor head 066

TrAnspec The industrial body builders 086

iMperiAl Truck renTAls The truck stops here 094

TrAnspOrTATiOn

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

010

094

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

Table of cOnTenTs SePTeMBer 2011 | VoluMe 2 | ISSue 9

MAnAgeMenT & OperATiOns

MAnufAcTuring

Mining

cOnsTrucTiOn

166sABle HOMes Willing and Sable 108

penBrO kelnick electric dreams 116

elB equipMenT Moving heaven and earth 122

erBAcOn sMAll plAnT Tool’s gold 132

MOOlMAn grOup Spearheading South africa’s property investments 138

MOrgADO Planting the seeds of success 144

VegTecH People in glass houses 152

Strategy, knowledge, networks and success. how glOBAl pAcific &pArTners continues to outperform all other advisory bodies in industry 158

Msp DeVelOpMenT Building a community 166

luBriTene Greased lightening 174

cOTTOn king Keep it reel 184

BellzOne Iron men 192

Page 9: The African Business Journal Sept 2011 - John Pinching
Page 10: The African Business Journal Sept 2011 - John Pinching

CrunCh time!can the springboks make it three?

Since its conception in 1987, the rugby union World Cup has always created history, drama, heroes, villains, nail-biting scenarios and moments of pure brilliance. This year’s simmering cauldron of rivalries will be brought to the boil in new Zealand—exactly where it all started more than two decades before. let the battle commence.

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

CrunCh time!can the springboks make it three?

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

12 COVER STORY � Crunch time! Can the Springboks make it three?

fAVOuriTes TO lifT THe TrOpHy On 23 OcTOBer

11/8 new Zealand

4/1 Australia

6/1 South Africa

10/1 England

16/1 France

20/1 Ireland

50/1 Wales

90/1 Argentina

175/1 Scotland

400/1 Samoa

750/1 Figi, Tonga

1000/1 Everyone else

2000/1 namibia

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

13SEPTEMBER 2011 � The African Business Journal

When the Rugby Union World Cup story began

24 years ago the organisers had high hopes for

a sport that had long-deserved a platform be-

fitting of its massive popularity—a stage upon

which its finest exponents could display their

myriad of skills in front of a captivated interna-

tional audience.

Even in those halcyon days of the late

1980’s, not even the most optimistic fans could

have predicted the blood and thunder produced

by this increasingly spectacular tournament.

History in the makingFor connoisseurs of the previous six campaigns

there are particular memories that spring in-

stantly to mind.

The first champions, New Zealand, jointly

hosted the competition and proceeded to make

light work of any team that stood in their way.

This included a mercurial French team who were

convincingly trounced 29-9 in the inaugural final.

That day the nonchalant Kiwi team included leg-

ends such as Sean Fitzpatrick, Grant Fox, John

Kirwan—who scored a decisive try in the final—

and Michael Jones.

Four years later Australia—featuring mouthy

try machine David Campese—laughed in the face

of tradition by toppling rugby’s original architects

and joint hosts, England. Although the game at

Twickenham—which the Aussies won 12-6—was

indicative of a low scoring and defensive tour-

nament, it heralded a new chapter of southern

hemispheric domination and raised serious ques-

tions about Will Carling’s famously arduous team

briefings (during which Jeremy Guscott would ap-

parently fall asleep). Many saw this as an official

changing of the guard and, for England, it began

a 12-year hiatus from the World Cup final.

Pump up the volumeIn 1995, Jonah Lomu burst on to the scene leav-

ing a trail of forwards flailing hopelessly in his

wake. Huge, powerful and lightning-fast, Lomu

stamped his indelible footprint on the tourna-

ment, scoring several breath-taking tries. It was

South Africa in their own back yard, however,

who defied the experts by smashing, skipping

and swooning their way to victory, adding a coat

of sensational gloss to Mandela’s brave new

post-apartheid nation. It would also drag the

sport kicking and screaming from ale-saturated,

nicotine-stained amateur clubhouses into the

weight-pumping, speeding-locomotive gymnasium

of professionalism.

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

14 COVER STORY � Crunch time! Can the Springboks make it three?

A year before the millennium it was Austra-

lia’s turn to bookend the decade with another

cup, leaving the legacy that their form over the

preceding ten years warranted. The solid and

impenetrable 1999 outfit coasted to the final

before sweeping aside perennial runners-up

France. Most of the points in a 35-12 victory

came from Matt Burke’s trusty boot, making

Australia the first country to trouble the trophy

engravers twice. Upsettingly, it would also be

the last time that traditional cotton shirts would

be worn at the finals. Shortly after, the big

sports brands introduced eye-wateringly tight

spandex attire; flattering to some and positively

insulting to others.

After a dozen years in World Cup final wil-

derness the colonialists unveiled, at will, a

majestic weapon, with a left foot of pure gold.

Johnny Wilkinson’s schedule of practice tee-

tered on the brink of OCD, but paid dividends

right at the death. During the final, in Sydney,

England took the game to the Aussies, trading

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

15SEPTEMBER 2011 � The African Business Journal

crunching tackles, getting under their skin and

matching them point for point. Led by the lion-

hearted Martin Johnson, they poured forward

in the final seconds, and the ball eventually

broke to Wilkinson who dispatched his devas-

tatingly precise drop-kick with ice-cold, con-

summate ease.

At the climax of the 2007 shin-dig, a battered

and heavily-criticised England somehow made

it into the final again. This time a South African

team with tenacity, brutality and creativity to burn

crushed the holders to lift the Webb Ellis trophy

for a record-equalling second time. The team’s

glorious progress through the championship was

highlighted by the gazelle-like speed of top try

scorer Bryan Habana and never-say-die approach

of the talismanic Schalk Burger.

It had been yet another classic fortnight of

theatre, confirming the Rugby World Cup as a

premier fixture on the sporting calendar and

leaving a global audience counting down the

seconds to 2011.

It dragged the sport kicking and screaming out of ale-saturated, nicotine-stained amateur clubhouses into the weight-pumping, speeding-locomotive gymnasium of professionalism.

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

16 COVER STORY � Crunch time! Can the Springboks make it three?16 COVER STORY � Crunch time! Can the Springboks make it three?

Who’s coming to the party?With the tournament a matter of weeks away TABJ dusts off its

magnifying glass and examines the match winners, secret weap-

ons, enigmas and potential heroes from the top nations.

sOuTH AfricAexplOsiVes experT: BryAn HABAnA

He already has a winners medal proudly pinned to his lapel and

Habana will be looking to add another this summer. Although his form

has been inconsistent since the memorable 2007 victory, the winger’s

abundant box of tricks has often reopened when club and country have

needed it most. Provided he is given adequate service, the electrifying

turn of pace that has earned him the nickname ‘dash’, could light up

the tournament. Under fire, coach Peter De Villiers will be praying that

his star man’s afterburners are activated in time for the early stages.

ArTillery: MOrné sTeyn, scHAlk Burger, cHiliBOy rAlepelle

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

17SEPTEMBER 2011 � The African Business Journal 17SEPTEMBER 2011 � The African Business Journal

englAnDexplOsiVes experT: cHris AsHTOn

Ashton caught the eye of England selectors after converting from

rugby league in 2007. He put in some unforgettable performances dur-

ing the early part of 2011 and perfected the knack of being in the right

place at the right time, to finish England’s intricate passing sequences.

He usually completes a try by ‘swan diving’ over the line, much to the

chagrin of one M. O. Johnson, whose attempts to censor Ashton’s

gymnastics have proved fruitless. It is the winger’s industry and enthu-

siasm, however, which are most likely to succeed during the World Cup.

ArTillery: JOnny wilkinsOn, lewis MOODy, MArc cueTO

irelAnDexplOsiVes experT: BriAn O’DriscOll

Outside centre and veteran of well over 100 international caps,

O’Driscoll is one of several members of the Irish contingent who will

count this tournament as their last great opportunity for goldware.

O’Driscoll, who has proved pivotal during several successful Grand

Slam campaigns, scored two tries during the last World Cup but didn’t

quite live up to his nation’s high expectations, on the loftiest rugby

stage. He’ll be looking to put that right in the early exchanges this time,

delivering his lethal combination of flair and fearlessness.

ArTillery: pAul O’cOnnell, rOnAn O’gArA, gOrDOn D’Arcy

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

18 COVER STORY � Crunch time! Can the Springboks make it three?18 COVER STORY � Crunch time! Can the Springboks make it three?

AusTrAliAexplOsiVes experT: quADe cOOper

A young man with authoritative rugby shoulders, Cooper has dis-

mantled teams with his running breaks and dynamic passing. After the

recent Wallabies tour his maturity on the pitch was unfortunately coun-

teracted by an inexplicable Gold Coast stealing spree which earned him

a burglary conviction! The inside centre will be hoping to commit grand

theft of the sporting variety when his rejuvenated team start their cam-

paign in a potentially tricky encounter against Italy. With Cooper in the

ranks a third World Cup for the Aussies is a distinct possibility.

ArTillery: JAMes O`cOnnOr, sTepHen MOOre, ADAM AsHley-cOOper

OTHer TeAMs cOMpeTing in THe 2011 rugBy uniOn wOrlD cupArgentina, Fiji, France, Italy,

Scotland, Tonga, Wales, Canada,

Georgia, Japan, namibia, Romania,

Russia, Samoa, United States

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

19SEPTEMBER 2011 � The African Business Journal 19SEPTEMBER 2011 � The African Business Journal

new zeAlAnDexplOsiVes experT: DAn cArTer

New Zealand are in pole position to snatch their first title since the

inaugural competition and one man sums up their ethos entirely; D. W.

Carter. Quiet and reserved off the pitch, but fluent, athletic and devas-

tating on it, Carter is considered one of the greatest fly-halves to have

graced the game. Arguably the complete player, he has already dis-

patched well over 1,000 points, incorporating all the different methods

of scoring. Carter will see the World Cup as the ultimate test of his ex-

traordinary abilities. Don’t be surprised to if he heads the points table.

ArTillery: ricHie MccAw, cOlin slADe, MA’A nOnu

frAnceexplOsiVes experT: VincenT clerc

In Vincent Clerc Les Bleus have a waspish little dynamo who, on his

day, can dazzle, dink, drive through and deceive defences. His diminutive

frame, positional sense and fast reactions have often combined to cre-

ate try scoring opportunities for both him and his team mates. He will be

hoping to revive the fortunes of an inconsistent French side who flattered

to deceive in the 2011 Grand Slam, but whose finesse and ‘je ne sais

quoi’ is often typified by Clerc. Although a French triumph seems unlikely,

he has defiantly stated that France are capable of securing a first title.

ArTillery: MAxiMe MéDArD, MOrgAn pArrA, DiMiTri yAcHVili TAB

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

20 NEWS IN REVIEW

Muse business news coming out of africa

new Business, As sTAnDArD

Africa’s largest bank, Standard, has revealed its

market-beating performance in the first half of

this year, while also laying down plans to launch

a bigger onslaught on the domestic and African

market in the near future.

The banking group reported earnings of

R6,64bn—an increase of 11 per cent—and head-

line earnings per share of 418,4c, a rise of 10

per cent. The market has reacted positively to the

results, with its share price closing four per cent,

up at R94,50.

The CEO of Standard Bank SA, Sim Tshaba-

lala, said Standard’s desire to lend to individual

and corporate customers had never been greater.

He added that after presenting Standard’s results

there had been an all-out effort to use its balance

sheet clout to create new business across all mar-

ket segments.

“We are open for business but we are not

chasing market growth,” says Tshabalala. “Mar-

ket share growth is what we do very efficiently

and we will continue to act with due diligence in

the way we lend and price our risks.”

Standard now has the largest market share

in home loans, credit cards and share of depos-

its in South Africa and also has 9.3 million retail

customers.

Group earnings in the period to June got a

boost from a 30 per cent increase in earnings

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

21SEPTEMBER 2011 � The African Business Journal

business news coming out of africa

within the personal and business banking unit of

R2,5bn. Meanwhile, retail banking operations in

SA showed a growth of 17 per cent in earnings to

R5,53bn.

pc is DeAD sAys iBM

Apple’s Steve Jobs has regularly claimed that we

are living in a ‘post PC universe’. Now an IBM ex-

ecutive has added fuel to the fire. Chief technol-

ogy officer for the Middle East and Africa region,

Mark Dean, says the company did the right thing

by getting out of the PC business.

August marks the 30th anniversary of the

ground breaking IBM 5150 PC, which was widely

considered to represent the dawn of the PC era.

IBM, for years, lead the way in ensuring a PC in

every home, a campaign which, in turn, drove an

industry that now sells millions of units each year.

Although Dean was on the team that helped

shape IBM’s PC business, he lauds the company

for selling its computer business to Lenovo in 2005.

“While many in the tech industry questioned

IBM’s decision to exit the business at the time, it’s

now clear that our company was in the vanguard of

the post-PC era,” Dean says.

“The PC is no longer at the leading-edge of

computing.”

In contrast, Microsoft Corporate Communica-

tions Chief, Frank Shaw, says he likes to think of the

current state of computing as the ‘PC-plus’ era.

“We’ll continue to lead the industry forward in

bringing technology to the next billion people on

our planet,” Shaw says. “We’ll do that as we always

have, by working with our partners to deliver amaz-

ing experiences to individuals and businesses.”

inDiAn OppOrTuniTies BeckOn fOr sOuTH AfricA

South African companies are being urged by Busi-

ness Unity South Africa (BUSA) vice president

Brenda Madumise to become more active in the In-

dian market. She pointed out that some 102 Indian

companies were now active in the South African

market, but that South Africa based businesses

needed to increase their presence in India.

“We need to do much more business in

India,” she said. “BUSA and CII [Confederation of

Indian Industry] have been working closely to en-

hance the business relationship between our two

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

22 NEWS IN REVIEW

Muse business news coming out of africa

countries. Successive South African governments

since 1994 have prioritised relations with India

and now we need to see this come to fruition.”

Since 1991, India’s gross domestic product

has gone up by a factor of four and the country’s

per capita income has more than doubled. For-

eign direct investment in the country since 2000

has reached $200 billion.

“India’s integration with the global economy

has surpassed all expectations,” said CII Director-

General Chandrajit Banerjee. “The country has a

young population and an expanding middle class.

There is an opportunity for all South African busi-

nesses to participate, and participate profitably,

in India’s development story.”

sisTers sHOulD DO iT fOr THeMselVes

President Jacob Zuma has said that statistics

showed that more progress needs to be made to

advance women in the business sector. Only 4.4

per cent of the chief executive and managing direc-

tor positions were held by women. In addition, they

held 15.8 per cent of all directorships according to

the 2011 Women in Corporate Leadership Census

of the Business Women’s Association.

“This year has provided economic transfor-

mation and job creation. The government wants

to see a visible change for women from all walks

of life,” he said.

“We are however concerned that the target of

10 per cent for female participation in mining was

not met, as the recent Mining Charter review has in-

dicated. This means that more work must be done

to open this sector for women,” he added.

The government has been well-aware that

women entrepreneurs remain on the periphery

of the national economy and has encouraged

women to enter industries that were traditionally

dominated by men, including mining.

pepkOr increAses eMpire

South Africa’s biggest clothing retailer, Pepkor

Ltd., will open stores in Nigeria as Chairman

Christo Wiese expands his business empire

across Africa.

“We will invest about R100 million in the first

phase of operations,” he said. “Africa is awaken-

ing—it’s a huge market of almost a billion people,

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

23SEPTEMBER 2011 � The African Business Journal

business news coming out of africa

with huge resources and a young population.

People spend when they’re young and it’s a grow-

ing market; there is enough for everybody.”

Wiese, ranked as the fourth richest South Afri-

can on Forbes Magazine’s list of billionaires, with a

net worth estimated at $1.6 billion, controls Shop-

rite Holdings Ltd., Africa’s largest grocer, and holds

more than a third of Brait SA (BAT)—the biggest

South African private equity company. The 69-year-

old is relying on economies in Africa expanding

faster than the U.S. and Europe.

Pepkor will follow the example of Shoprite,

which has 76 supermarkets in 15 African countries

outside of South Africa. Pepkor will then expand

gradually in different African regions, adding to its

2,800 stores in South Africa, which include the Pep,

Ackermans and the Best and Less brands.

Pepkor’s expansion follows a reorganisa-

tion of the retailer’s shareholding in June with

the intention being to let its shareholders take a

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

24 NEWS IN REVIEW

Muse business news coming out of africa

long-term view, while not having the pressure of

having to close their investment in the company.

AgenTs giVen ‘unDerwATer’ pAyMenTs

Ferrostaal, the main company in the consortium

that sold South Africa submarines as part of the

controversial 1999 arms deal, paid more than

$40 million to agents in South Africa.

It’s one of the key findings to emerge from a

controvercial internal-compliance investigation

compiled for Ferrostaal’s new management by in-

ternational law firm Debevoise & Plimpton (D&P).

Other key discoveries within the South Africa

section of the report, highlight concerns about

Ferrostaal’s business relationship with Chippy

Shaik, the former chief of acquisition who played

a central role in the tender process. It shows the

German company’s disdain for the multibillion-

rand offset obligations that were supposed to

flow from the weapons purchases and reveal the

two main agents were Greek tycoon Tony Geor-

giadis—known for his involvement in the Frigate

deal and for his association with former Presi-

dent Thabo Mbeki—and Tony Ellingford, a former

defence-industry executive who was close to late

defence minister Joe Modise.

A number of former Ferrostaal executives

are facing criminal and civil actions in Germany

relating to the company’s widespread past use of

payments to obtain business.

The overall findings by D&P concerning Fer-

rostaal’s worldwide operations provide important

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

25SEPTEMBER 2011 � The African Business Journal

business news coming out of africa

background to the €36-million in payments for

the South African deal, though the law firm char-

acterises these as having “significant red flags”

but lacking evidence of criminal conduct.

sweeT pOlicies neeDeD TO sTrengTHen kenyAn

sugAr inDusTry

Three years ago, Kenya requested partners in

the Common Market for the Eastern and South-

ern Africa trade bloc. It was a move intended to

extend quotas on the amount of sugar imports

from the region.

Trade and Industry minister Dr Mukhisa

Kituyi went to great lengths to convince Comesa

members and many stakeholders that by 2011

there would be a streamlined sugar industry

complete with imports from the region, but it

hasn’t materialised.

Kenya now wants yet another extension, be-

yond the coming year’s deadline. In the previous

agreement from other Comesa nations, Kenya

was to tax all but 200,000 tonnes, while open-

ing the sugar market to imports at the rate of

40,000 tonnes per year.

The country’s development of a vibrant sugar

industry has been hampered by the high cost

of production, making its sugar uncompetitive.

It has to rely on the Comesa countries, but has

been slow to open up the market, fearing that

the sugar industry, which supports the western

Kenya economy, could collapse under the weight

of cheap sugar imports.

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

26 NEWS IN REVIEW

Muse business news coming out of africa

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

27SEPTEMBER 2011 � The African Business Journal

business news coming out of africa

While the sector has in recent years witnessed

some significant reforms, such as proper manage-

ment of sugar factories, this has yet to have a major

impact on the competitive nature of sugar. As a na-

tion, Kenya is desperate to safeguard the industry,

but the deadline cannot be extended indefinitely.

AnglO AccuseD Of sOuTH AfricAn BiAs

Cynthia Carroll, Anglo American CEO, has put up

a spirited defence of South Africa after queries

from mining analysts. Her passionate response

followed Anglo’s formidable 45 per cent increase

in core operating profit in the six months to June.

Bank of America Merrill Lynch analyst Ja-

son Fairclough had queried Anglo’s continuing

heavy dependence on a South Africa that he

claims is wracked by a protracted mine nation-

alisation debate.

“As impressive as all the progress might be

towards the company growing outside South Africa,

there is no getting away from the fact that half of

Anglo remains in South Africa,” insists Fairclough.

Carroll’s responded: “Anglo is receiving con-

sistently good readings from the South African

government and it continues to believe in South

Africa as a place to trade. We are rightly proud of

our status domestically but we also have several

exciting ventures overseas and are always look-

ing for new international projects.”

Contrary to popular belief, half of the com-

pany’s $15 billion worth of near-term approved

projects will actually be in South America, includ-

ing the Barro Alto nickel, Los Bronces copper and

Minas Rio iron-ore projects. There are also lucra-

tive ventures in the form of the Collahuasi and

Quellaveco copper projects, in Chile and Peru

respectively, and the Cerrejon thermal coal proj-

ect, in Colombia. TAB

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

AfricA’s premier exportsAfter weeks of uneventful friendlies and European competition qualifying fixtures featuring teams no one’s ever heard, the buzz and pulsating action of the English Premier League has returned. Once again a healthy contingent of African footballers will be exhibiting their skills in front of some of the world’s most passionate sports fan. TABJ looks at eight African exports likely to make their mark this season.

PHOTO CREDITS: naIPung / SHuTTERSTOCk.COm

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

AfricA’s premier exportsAfter weeks of uneventful friendlies and European competition qualifying fixtures featuring teams no one’s ever heard, the buzz and pulsating action of the English Premier League has returned. Once again a healthy contingent of African footballers will be exhibiting their skills in front of some of the world’s most passionate sports fan. TABJ looks at eight African exports likely to make their mark this season.

speciAL report

029

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

30 SPECIAL REPORT � African Footballers: africa’s premier exports

Asamoah Gyan—Sunderland

Asamoah Gyan’s heroics in last year’s

FIFA World Cup fired him into the media

spotlight and helped Ghana to the quarter

finals of the tournament.

Sunderland boss Steve Bruce shelled

out £13 million to French club Rennes for his

services and the 25-year old has been busy

trying to repay the gaffer’s faith ever since.

Bruce has had a busy summer and has

signed the young Egyptian winger Ahmed

Elmohamady, following a successful loan

spell with the Wearside club last term.

In January, the Mackems also signed

Beninese playmaker Stéphane Sessègnon

as a player who Bruce says “can play on the

left, on the right, through the middle—he’s

lightning quick and he’s a match-winner”.

But it is the skill and experience of Gyan

that the club is most likely to rely on this sea-

son as the big spenders look to improve on

last year’s underwhelming tenth place finish.

Christopher Samba—Blackburn Rovers

The loyal and dependable Christopher Samba is facing a season of uncertainty at Blackburn Rovers following the clubs disap-

pointing run in to the 2010-11 season.

Manager Steve Kean is under pressure to deliver from both the clubs’ impatient fans and its colourful Indian millionaire owners.

The Blackburn Rovers captain started his career in France, before moving to German capital Berlin to join Hertha BSC. After

three relatively uneventful years, Samba was signed by former Rovers manager Mark Hughes for just short of £500,000.

The powerful defender represents Congo and has played 20 times for the Red Devils. Since joining Blackburn in 2007 Samba has be-

come an automatic first-team pick and has made more than 140 appearances.

Alex Song—Arsenal

Arsenal defender Alex Song was one of the Gunners’ most consistent players

last term and will no doubt be striving to help the North London club win its

first trophy since they beat Manchester United in the 2005 FA Cup Final.

Song made his international debut for Cameroon in 2005 and signed for

Arsenal from French club Bastia in 2006 following a successful loan spell with

Arsène Wenger’s side.

Having lost their star player Cesc Fabregas to Spanish giants Barcelona this

summer, and with French midfielder Samir Nasri on the verge of leaving

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

31SEPTEMBER 2011 � The African Business Journal

Christopher Samba—Blackburn Rovers

The loyal and dependable Christopher Samba is facing a season of uncertainty at Blackburn Rovers following the clubs disap-

pointing run in to the 2010-11 season.

Manager Steve Kean is under pressure to deliver from both the clubs’ impatient fans and its colourful Indian millionaire owners.

The Blackburn Rovers captain started his career in France, before moving to German capital Berlin to join Hertha BSC. After

three relatively uneventful years, Samba was signed by former Rovers manager Mark Hughes for just short of £500,000.

The powerful defender represents Congo and has played 20 times for the Red Devils. Since joining Blackburn in 2007 Samba has be-

come an automatic first-team pick and has made more than 140 appearances.

Alex Song—Arsenal

Arsenal defender Alex Song was one of the Gunners’ most consistent players

last term and will no doubt be striving to help the North London club win its

first trophy since they beat Manchester United in the 2005 FA Cup Final.

Song made his international debut for Cameroon in 2005 and signed for

Arsenal from French club Bastia in 2006 following a successful loan spell with

Arsène Wenger’s side.

Having lost their star player Cesc Fabregas to Spanish giants Barcelona this

summer, and with French midfielder Samir Nasri on the verge of leaving

the club Arsenal, have found themselves craving stability as the

13-times English champions head into a potentially tough season.

Song is one of several African players Wenger is hoping to utilise

as he aims to add strength to his young skilful side. Recent £10.5 mil-

lion signing Gervinho, a Côte d’Ivoire international, and last season’s

acquisition of Moroccan striker Marouane Chamakh could go some

way towards meeting the expectations of the club’s frustrated fans.

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

32 SPECIAL REPORT � African Footballers: africa’s premier exports

Dickson Etuhu—Fulham

Plying his trade on the banks of the Thames

in West London, Dickson Etuhu has proved

himself to be a talented and versatile defen-

sive midfielder during his lengthy spell in the

English Premier League.

The former Nigerian international has

spent his entire career within the Eng-

lish league system and following spells

with Manchester City, Preston North End,

Norwich and Sunderland, the 29-year old

seems to have found his most consistent

form at Craven Cottage.

Etuhu was part of the starting XI when for-

mer manager Roy Hodgson took the club to the

final of the 2010 UEFA Europa League and after

another relatively successful year under Mark

Hughes last season, he looks likely to play a

key role this term under the recently appointed

Martin Jol.

The Fulham midfielder was part of the Ni-

geria’s squad that failed to set the world alive

at last year’s World Cup, but has since quit

international football after falling out with

Super Eagles boss Samson Siasia.

Peter Odemwingie—West Bromwich Albion

After starting his professional career in Nigeria for Benin City’s Bendel Insurance Football Club,

Peter Odemwingie has since played in Belgium, France and Russia, before being signed by for-

mer West Bromwich Albion boss Roberto Di Matteo for an undisclosed fee last summer.

The forward finished his first season in England as the Baggies’ top scorer with 15 goals

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

33SEPTEMBER 2011 � The African Business Journal

Benoît Assou-Ekotto—Tottenham Hotspurs

The brutally honest Benoît Assou-Ekotto

once said in a U.K. newspaper interview that

he left French Club RC Lens because he

would earn more money in England.

Despite his unorthodox approach to

interviews with the British press, the Camer-

oon international has won over fans of North

London club Tottenham Hotspurs with a

series of uncompromising yet stylish displays

on the left side of Harry Redknapp’s defen-

sive unit.

As part of the Spurs team that qualified

for the Champions League two seasons ago,

Assou-Ekotto will no doubt be a key figure in

this season campaign as the club looks to

restore its top-four status.

His international career has taken off in

the past three years and the defender played

every minute of Cameroon’s three games in

the 2010 World Cup.

Peter Odemwingie—West Bromwich Albion

After starting his professional career in Nigeria for Benin City’s Bendel Insurance Football Club,

Peter Odemwingie has since played in Belgium, France and Russia, before being signed by for-

mer West Bromwich Albion boss Roberto Di Matteo for an undisclosed fee last summer.

The forward finished his first season in England as the Baggies’ top scorer with 15 goals

and in recent weeks has been linked with moves to Premiership rivals Tottenham

and Wigan.

Despite being born in Uzbek SSR, USSR and raised in Russia, Odemwingie was forced

to deal with racist abuse from his own fans during his time with Lokomotiv Moscow.

Odemwingie, who opted to play for Nigeria, was also eligible for a call up by the

Russian and Uzbek national teams.

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

34 SPECIAL REPORT � African Footballers: africa’s premier exports

Yaya Touré—Manchester City

Arguably the most impressive of Man-

chester City’s multi-million pound signings

last season, Yaya Touré scored both the

winning goal against city rivals Manches-

ter United in the semi-final of the FA Cup,

and the winning goal in the final against

Stoke. In scoring the winning goal at Wem-

bley, Touré brought Manchester City’s fans

their first taste of silverware since 1976.

Touré joined Manchester City from

Barcelona in July 2010, when he linked up

with his elder brother and former Arsenal

defender Kolo Touré.

The pressure is on Roberto Mancini’s

Manchester City to outperform last sea-

son’s successes, and with Champions

League football on the cards Touré looks

set to play pivotal role in what could be an-

other history-making season for the blues

half of Manchester.

PHOTO CREDITS: AHMAD FAIZAL YAHYA / SHUTTERSTOCK.COM

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

35SEPTEMBER 2011 � The African Business Journal

Didier Drogba—Chelsea

He may be coming towards the end of his tenure as Chelsea’s first-choice

striker following the £50 million arrival of Spaniard Fernando Torres midway

through last season, but no list of Africans making their mark on England’s

top league would be complete without Didier Drogba.

Known in his native Côte d’Ivoire for his humanitarian commitments, the

country’s all-time highest goal scorer has even found himself in Time maga-

zine’s 100 most influential people for his role in the country’s peace process.

His medal tally includes three Premier League titles, three FA Cups and

two League Cups, and he also has captained Côte d’Ivoire at two World

Cups (2006 and 2010).

At the grand age of 33 it would be wise not to expect the same fireworks as

he’s provided in previous seasons, but if Torres continues to struggle in his quest

to hit the back of the net, there can be no doubt that Drogba will continue to pile

the pressure on the Spaniard, whenever he gets his chance. TAB

PHOTO CREDITS: AHMAD FAIZAL YAHYA / SHUTTERSTOCK.COM

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

Poprica!TABJ takes a second leisurely stroll through the enthralling landscape of African-influenced pop music. This month’s set list explores three more unforgettable discs, all from the most indulgent decade in the history of mankind.

pArT

TwO

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

Poprica!

speciAl repOrT

pArT

TwO

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

38 SECTION � Title

Contrary to popular opinion this Stevie Wonder foot-tapper isn’t just a frivolous novelty tune that restaurants play every time a guest

celebrates a birthday. Indeed, it is a record that was originally designed to celebrate the monumental achievements and legacy of African-

American civil rights activist Martin Luther King. For Stevie it represented a continued departure from his funk and soul pomp. At this time he

was happy to venture into the Cinzano-drenched nightclub of 1980s pop, instead.

HAppy BirTHDAy (1981) By sTeVie wOnDer

Rap legend Afrika Bambaataa, or Kevin Donovan—as his parents prefer to call him—changed his name after he won a writing competition,

which earned him a life-changing trip to Africa. A couple of years after his breakthrough single in 1981 he collaborated with Soul Sonic Force

to create this back-spinningly electronic, politically motivated and percussion infused hip-hop treat. The triumphant lyrics make regular

references to heroic figures of the past and influential icons of contemporary street culture.

renegADes Of funk (1983) By AfrikA BAMBAATAA & sOul sOnic fOrce

The Bangles are possibly the first and last band to base one of their records on ancient cave drawings. A relentlessly catchy tune, the all-

girl group from America had brought archaeology to the masses in a way that no one could have predicted. The song also gave rise to a daft

dance which responded obediently to the record title, often with embarrassing results. Popular at weddings and birthdays the choreography

involved thrusting your head back and forth using your neck to exaggerate the movements. TAB

wAlk like An egypTiAn (1986) By THe BAngles

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

39AUGUST 2011 � The African Business Journal

Contrary to popular opinion this Stevie Wonder foot-tapper isn’t just a frivolous novelty tune that restaurants play every time a guest

celebrates a birthday. Indeed, it is a record that was originally designed to celebrate the monumental achievements and legacy of African-

American civil rights activist Martin Luther King. For Stevie it represented a continued departure from his funk and soul pomp. At this time he

was happy to venture into the Cinzano-drenched nightclub of 1980s pop, instead.

HAppy BirTHDAy (1981) By sTeVie wOnDer

Rap legend Afrika Bambaataa, or Kevin Donovan—as his parents prefer to call him—changed his name after he won a writing competition,

which earned him a life-changing trip to Africa. A couple of years after his breakthrough single in 1981 he collaborated with Soul Sonic Force

to create this back-spinningly electronic, politically motivated and percussion infused hip-hop treat. The triumphant lyrics make regular

references to heroic figures of the past and influential icons of contemporary street culture.

renegADes Of funk (1983) By AfrikA BAMBAATAA & sOul sOnic fOrce

The Bangles are possibly the first and last band to base one of their records on ancient cave drawings. A relentlessly catchy tune, the all-

girl group from America had brought archaeology to the masses in a way that no one could have predicted. The song also gave rise to a daft

dance which responded obediently to the record title, often with embarrassing results. Popular at weddings and birthdays the choreography

involved thrusting your head back and forth using your neck to exaggerate the movements. TAB

wAlk like An egypTiAn (1986) By THe BAngles

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

wATer wArsCould water worries spill into war?

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

pOliTics

wATer wArsCould water worries spill into war?

041

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

42 POLITICS � Water Wars

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43SEPTEMBER 2011 � The African Business Journal

Water—to those who have it, it seems in plentiful supply. Safe drinking water, however, is still denied to one-sixth of the world’s people. as Somali plunges into famine TABJ ponders whether the next great war could be over something as seemingly trivial as water.

wHeTHer iT is for drinking, cleansing, industry

or agriculture water has metaphorically, spiritu-

ally and physically transcended borders, religions

and nationalities. Could something as sacred as

water really provoke widespread killing?

The idea of going to war over this most fun-

damental of human rights is not an image most

can very readily conjure. Yet, for many—including

Egyptian diplomat Boutros Boutros Ghali—the

concept of violent, large scale conflict over water

is a clear and present danger. The former UN

secretary firmly believes that many 21st century

wars will be fought over water. He reasons that

wars have been waged over other natural re-

courses, such as oil, so why not water?

Hard to swallowThe term ‘Water Wars’ has been around for

many years (there is no definitive explanation

regarding its origins) and does not necessarily

refer to conflict on a grand scale. ‘War’ in the

context of water could mean a low-tech, unso-

phisticated battle between resource poor, eco-

nomically unsound nations. It could be guer-

rilla in its nature—even between civilians driven

to desperate measures by drought or famine.

Organized military conflict, however, is also a

serious possibility. Indeed, government’s which

are concerned about a breakdown in commu-

nication, or another country redirecting water

resources—as has happened between India and

Bangladesh—may seriously consider going to war.

The philosophy being that the casualties inflicted

while fighting to protect or reclaim an established

water source would be considerably less than

those incurred as a result of not having a supply

of clean water.

At present the international water scene is

one of relative peace. Countries tend to cooper-

ate when it comes to sharing water resources.

The level of comradeship, however, is hard to as-

certain—it maybe just a case of sharing because

they don’t really know who owns it (land boundar-

ies tend to be established whereas water, by its

very nature, is hard to pin down).

Despite this relative harmony where water is

concerned, the increasingly limited supplies have

given rise to tensions, and some international

relationships are beginning to fray or get even

worse than they already are.

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

44 POLITICS � Water Wars

Current water shortages are occurring for

a number of reasons. The global population is

booming and, in spite of an increasingly brutal

AIDS epidemic, this is especially the case in Sub

Saharan Africa. Numbers of people are grow-

ing at a rate of three per cent every year and,

since the 1960s, the population had doubled. In

20 years it will have doubled again. While other

countries have adopted a more ’Western’ para-

digm Sub Saharan Africa still produces compara-

tively large families.

Many rivers to crossSome of the nations most at risk use the basin

area of the Nile. The longest river on the planet,

it courses through ten countries in north-eastern

Africa, from Rwanda to Egypt. Water quality

throughout its stretch varies from perfectly drink-

able to life-threateningly polluted. Contamination

occurs through the effects of industry, agriculture

and household waste.

Egypt has a historical claim to the Nile’s

resources, having acquired its rights several

hundreds of years ago. Although this has been

the focal point of speculation, it is nevertheless

assumed that any reduction of Egypt’s supplies,

or interference by upstream countries, would be

seen as highly provocative. Sudan has been the

most active in securing its place as one of the

highest Nile basin users by creating four damns

in the last century.

In contrast, Ethiopia uses only one per cent

of the Nile’s resources despite its tributaries pro-

viding the Nile with 86 per cent of its supplies.

Perhaps the only reason that conflict has been

avoided is that neighbouring states do not have

the military recourses to enter into any kind of

organized conflict and therefore succumb to the

bullying tactics of richer nations.

Water has already contributed to conflict and

could be cited as one of the main reasons for

the 1967 Arab-Israeli war. In 1964, Israel had

started to take large quantities of water for its

National Water Carrier project. The Arab states

responded by diverting water before it entered

Israel, prompting Israeli defense forces to carry

out a series of attacks on the diversion works.

Water fallThe Middle East, which constitutes five per

cent of the global population, shares only one

percent of the usable water supply. This has

frequently added significantly to the omni-

present hostilities between Israel, Jordan and

Palestine. Although all three rely on the River

Jordan, it is Israel that controls and frequently

limits the supply of water to its neighbours.

Although oil has been traditionally the most

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

45SEPTEMBER 2011 � The African Business Journal

fiercely protected commodity; provocation and

global warming could prove a lethal cocktail,

making this area a prime location for the first

all-out water war.

With these examples in mind it is interest-

ing to note that leaders of both Egypt and Israel

(President Anwar Sadat and King Hussein re-

spectively) have in the past claimed that they

would only go to war with each other over water.

A further and undeniable threat is environmen-

tal change, including an unpredictable climate,

erratic rainfall, drought and the negligible perfor-

mance of underground water supplies known as

aquifers. Often this will escape attention because

the damage cannot actually be seen.

It is not only poor countries that have re-

moved a disproportionate amount of under-

ground water. In Arizona they are taking water

at such a rate that only half will be naturally

renewed. The invasion of natural underground

supplies will almost certainly continue as previ-

ously under-developed countries enter a period

of increased industrialization. An additional and

constant environmental threat is, of course, the

depletion of natural resources through the evap-

oration of rivers and lakes.

Ultimately, there is a very real chance that

the combination of nature, greed, ignorance and

lack of foresight could result in catastrophic con-

sequences, including war.

It is possible that the global community is

guilty of burying its head in the sand while the very

source of life trickles through its fingers. TAB

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

OuT Of THe cOMfOrT zOne046

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

OuT Of THe cOMfOrT zOne

Business & culTure

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

48 BUSINESS AND CULTURE � Teacher in africa

after years of teaching business students in the u.K., rupert Freeman decided his knowledge could be used to make a difference in africa. In the past year he has been delivering life-changing lessons, while also learning a few of his own….

iT’s Been A difficult time if your name is Rupert.

As one of this exclusive club attempted to save

his grizzly empire, penniless Rupert Freeman was

selflessly sharing his knowledge with aspiring,

but less fortunate students. TABJ talks to a man

who arrived in Egypt to teach business, only to

find himself in the middle of a bloody revolution.

TABJ: Why did you decide to up sticks and leave

your cosy job in England?

ruperT freeMAn: To be honest, I was concerned

that Europe was heading for financial meltdown,

and schools in the U.K. would be seeking cost-

cutting opportunities (redundancies, pension cuts,

reducing the number of white board markers, that

kind of thing). I’ve been proved right to a certain

extent, although admittedly issues in Egypt—like the

overthrowing of a tyrannical regime—have put those

initial concerns into some perspective!

TABJ: What was so appealing about Cairo?

rf: It’s a different continent, which has an in-

creasing middle class population and average

GDP, resulting in better salaries, reasonable tax

payments and good working conditions.

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49SEPTEMBER 2011 � The African Business Journal

TABJ: Why do you find teaching business so re-

warding?

RF: It provides an opportunity for me to pass on

my extensive experience in business, accounting,

marketing, property and sales, to young Egyptian

people, while also inspiring entrepreneurship.

This will, in turn, improve economic conditions

and pave a way for future generations of busi-

ness people. It’s incredibly important that I leave

a lasting legacy. I am determined to release po-

tential and these students have it in abundance.

They want to live better lives, earn a good wage

and provide for their families.

“It’s incredibly important that I leave a lasting legacy. I am determined to help release potential and these students have it in abundance. They want to live better lives, earn a good wage and provide for their families.”

TABJ: How responsive have your students been

so far?

RF: My students are very keen to emerge from their,

often very difficult, circumstances. They are really

receptive to British standards and techniques in

teaching. Typically, Egyptian teaching methods are

based on repetitive learning, but I aim to use a

more varied and active pedagogy. Keeping people

engaged is vital and prepares them for all kinds of

different working environments.

TABJ: Have they got the potential to succeed in

the cut throat world of business?

RF: Cairo has historically been a centre of trade

between Europe and the rest of the world, with

the Suez Canal being the mid-point of the world’s

shipping activities. As a result of this historic hub,

business studies is the most popular subject at

my school, and all these pupils have a natural

curiosity about sales and business. It has been

a real privilege to be able to nurture this enthu-

siasm into something dynamic, not only for the

individual, but for the whole city.

TABJ: When did you realize that the scent of revo-

lution was in the air?

RF: There were rumours milling around the staff

room shortly before the real problems started, and

the British embassy sent a strangely vague email

to expats advising them not to go down town. It

was clear something very serious was unfolding

when we witnessed terrifying gun fights, screams

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

50 BUSINESS AND CULTURE � Teacher in africa

and bloodshed at the end of the road we live on.

At this point the caretaker of the building

dusted off his anachronistic World War II machine

gun and all hell broke loose. We hid in our rooms

and hoped that eventually we would be picked up

and taken to safety.

It was surreal—in a situation like that you go

into a state of shock; your brain simply cannot

comprehend what is happening. I do remember

briefly thinking, ‘I might actually die here.’ We

were witnessing history, but when your life is

under threat you start to question the wisdom

of your decisions. It was a warzone, the people

were determined to kick the government out

and I had no idea how it was going to end.

“It was clear something very serious was unfolding when we witnessed terrifying gun fights at the end of the road we live on. at this point the caretaker of the

building dusted off his machine gun and all hell broke loose.”

TABJ: What action did the school take to ensure

your safety?

rf: The school had some fairly odd, but ultimately

useful, contingency plans in place, which in-

volved taking us in convoy to the beach resort of

Sharm el Sheik. Bizarrely, they bolted us into an

all-inclusive hotel until events subsided. The only

thing to do all day was eat from the unlimited

buffet, until our stomachs begged for mercy. At

this point I would lie down before reconvening for

the next marathon feeding session.

It was very weird to know that crimes against

humanity were happening a few miles away and

we were just eating until it all died down. All

schools in Cairo were closed for six weeks, but I

heard that some expats weren’t taken away from

the trouble and they just had to wait.

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51SEPTEMBER 2011 � The African Business Journal

TABJ: Did you ever consider leaving?

rf: Within a few weeks the rebels had conquered

ex-president Hosni Mubarak and it seemed that

the country was entering a brave new chapter.

In hindsight, the Egyptian revolution was rela-

tively short compared to others, and we decided

that to leave would be unfair on a school, which

treated us so well during a very dangerous pe-

riod. I also owed it to the students to return and

finish the job I started. It’s this kind of incident

that tests the mettle of a passionate teacher, and

I’m glad that I stayed.

“Within a few weeks the rebels had conquered ex-president hosni Mubarak and it seemed that the country was entering a brave new chapter.”

TABJ: How much as Cairo changed since the old

regime was overthrown?

rf: Film, social discussion, music and even graf-

fiti have become much more open. Shortly after

arriving back we attended a film night with a

French Revolution theme. This would have been

impossible only three months earlier.

TABJ: What has been the most rewarding aspect

of your job?

rf: I thrive on teaching young people the me-

chanics of capitalism and the potential of en-

terprise. I have grown to love it in Egypt and to

see the people of this incredible country enjoy

a sense of freedom and hope has been truly

wonderful. The experience of the revolution

has been unforgettable and made me realise

that my mission here has only just begun. I

don’t have any regrets. TAB

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052

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

sODA kingSparkling performance

fOOD & Drink

052

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

54 FOOD & DRINK � Soda King

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

55SEPTEMBER 2011 � The African Business Journal

Soda King puts the fizz into the carbonated drinks industry by providing a veritable kaleidoscope of refreshing, revitalizing and irresistible beverages.

As sODA king’s name suggests, it has firmly established itself

as pop royalty in stores throughout Africa—no mean feat when

you consider who they’re up against! Its thirst quenching lines

cover every conceivable taste, which is just as well in a coun-

try where enjoying the great outdoors is a passion and hydra-

tion is virtually a way of life.

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

56 FOOD & DRINK � Soda King

Thirst for excellenceThe company began its rapid climb to the higher

echelons of the drinks industry after purchasing the

intellectual property, trademarks, knowledge and

recipes from a different organisation, eight years

ago. The previous owners had been trading since

1997 but after the takeover in 2003 the company

totally reinvented itself as Soda King. After assum-

ing its position on the throne it set about creating

a drinks emporium that offers sensational choice

and an unrivalled commitment to production. It was

an ambitious manifesto, but they haven’t bottled it

(well, in a way they have!).

Remarkably the company—whose headquar-

ters are based at picturesque Camps Bay, South

Africa—started with only a few members of staff.

This workforce has now risen considerably, and

Soda King runs a very smooth operation, using

their streamlined and talented workforce as ef-

ficiently as possible. Consequently, the guys are

a closely knit outfit and as well-oiled as the ma-

chines they operate.

Drink upSoda King has built its distinctive brand through

the sheer variety of its products, often venturing

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57SEPTEMBER 2011 � The African Business Journal

into new, unchartered areas. They currently boast

15 winning flavours, from traditional favourites

like sparkling orange, raspberry and lemonade,

to more exotic concoctions like coco pine, grana-

dilla and red grape. Other notable hits include

cream soda, apple and iron bru. Unsurprisingly,

the drink which has been crowned as the most

enduring and popular is King Cola—a classic riff

on the grand old master.

Although the company is relatively small com-

pared to its famous rivals, in terms of flavours,

combinations and formats it packs a formidable

punch. It has certainly proved popular with con-

sumers, who have enjoyed the interesting alter-

natives to usual soft drink selections. Let’s face it

everyone should try passion fruit and lemonade

at least once in their lives!

Under the ‘Aqua King’ banner it also provides

a range of healthy and rehydrating bottled water

options. Filtered and purified, these drinks offer

the more discerning palette a choice of crystal

clear still, sparking or flavoured waters. It’s an-

other example of the company’s devotion to pro-

viding everyone in the country with a drink they

will relish consuming.

Technological advancements have also

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

58 FOOD & DRINK � Soda King

allowed the company to produce pure non-alco-

holic malt drinks without having to go through

a brewing process. This ensures a constant

and considerable supply of a very popular

drink, without any arduous processes.

Fruit of the franchiseIn addition to the beverages line Soda King also

procures, supplies and installs complete turn-key

bottling plants for businesses on the African con-

tinent. This occurs under a franchise agreement

that allows outlets to take advantage of Soda

Kings brands, training, reputation and continu-

ous supply of concentrates. These tend to be

long-term partnership arrangements that bring

bottling expertise and knowledge to the local

community at affordable prices.

The franchises have enabled the Soda and

Aqua King brands to become ubiquitous throughout

the country, creating a brand with real presence.

It also manifests those sacred virtues of customer

trust and brand loyalty as more people are intro-

duced to the company’s array of temptations.

This development is very important to the

steady growth of the company as Managing Direc-

tor Gian Mani explains: “Expanding into Africa is

an evolving process that requires adaptation to

changing circumstances. We’re really pleased with

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59SEPTEMBER 2011 � The African Business Journal

[email protected]

GRANMALT MALT PRODUCTS

for easy production of• non-alcoholic malt beverages• malted milk• beer

Many thanks to Soda King for the great partnership!

the gradual expansion and still maintain big ambi-

tions. It’s an exciting platform to do business, with a

vibrant economy and great potential for the future.”

“We have also have a proven track-record of

delivering the franchise package on time, with

continuity of requisite raw materials, equipment,

strong brands and complete training of franchi-

sees in all aspects of the business, from techni-

cal and production to quality control,” he added.

BubblingSince its conception Soda King has expanded

from one factory, in 2003, to seven across

South Africa and other African countries. All

the factories are equipped to produce, market, sell

and distribute the complete range of soft drinks,

through the highly successful franchise system.

With the taste of success as sweet as some of

their drinks Soda King plans to open at least another

15 franchises over the next three years. It is also look-

ing at the possibility of expanding outside Africa and

eventually becoming a globally recognised brand.

It is perhaps the company’s slogan that sums up

what the company wants its customers to retain and

its drinks to encourage…a zest for life. TAB

www.sODAking.cO.zA

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

cHilTern fArMsCore, what a lovely pear

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

cHilTern fArMsCore, what a lovely pear

061

fOOD & Drink

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

62 FOOD & DRINK � Chiltern Farms

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63SEPTEMBER 2011 � The African Business Journal

a fruit business is only as good as the next apple it selects. For Chiltern Farms each and every one is as delicious as the last.

geTTing yOur fiVe fruit and veg a day can either be slightly arduous or, if

you’re very lucky, a pleasurable indulgence. There is nothing like sinking

your teeth into the sweet and delicious flesh of a crunchy apple or, come to

that, a seductive pear.

It is with this knowledge that Chiltern Farms prepare their cherished

orchards, insisting that the fruit of their efforts are matched by the taste of

the fruit they so lovingly produce.

Mudge sticksFor over half a century Chiltern Farms has been run by the devoted and

passionate Mudge family. After originally being purchased by their father in

the 1950s the operation is now run by Nigel and Des and, like the previous

branch of the family tree, they are mad about apples and pears. Nigel’s son

is also involved in the running of the farm, making it three generations of

Mudge to join the Chiltern production line—a veritable dynasty. The apple

certainly doesn’t fall far from the tree.

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64 FOOD & DRINK � Chiltern Farms

The original land consisted of 220 acres

which was carefully nurtured to create some

formidable orchards. The combination of fertile

ground, attention to detail and unique conditions

create apples and pears of extraordinary class.

Many of those original trees continue to spawn

irresistible fruit to this very day.

Fast and juiceOver the years Chiltern Farms has considerably

expanded its operations. In 1989 things really be-

gan to take off as the ambitious brothers began to

make their vision a reality—increasing the amount

of produce, exporting greater quantities to even

more countries and, perhaps most impressively,

adding a packing house to its facilities. This result-

ed in the good folk at Chiltern Farms being able to

regulate the life cycle of an apple from the exact

second it starts to form to the triumphant moment

when a customer takes their first bite. Growing,

picking, packing and providing pure joy—quality

control doesn’t get any better than this.

Multi-national companies should perhaps

take note that it is possible to grow a company to

grand new heights without sacrificing the family

ethos that set the standards in the first place.

Des Mudge explains, “Our father showed such

nous and determination to create the company,

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65SEPTEMBER 2011 � The African Business Journal

The design, manufacture and construction of steel structures for factories, warehouses, packing sheds, mezzanines, cellars, cold storage complexes, lean-to structures, aircraft hangars and cooling tunnels are our areas of expertise and what we are trusted for by hundreds of satisfied clients.

We look forward to working side by side with each new and existing customer so we can achieve the best possible solution in the most cost efficient way. And we proudly invite you to hold us to our promise of quality, customer satisfaction and ongoing after-sales service in everything we do.

Because LA Staal is the steel construction company where you will find experts you can rely on

that we always wanted to follow in his footsteps—

we had grown up on the farm and it was in our

blood. When Nigel and I had the chance to take

over the management we recognised the potential

for expansion, and now the company exports a

variety of fruit all over the world.”

In addition to the continued production of ap-

ples and pears Chiltern Farms now has a 16 hect-

are plot set aside for the cultivation of Sharon fruit.

This increasingly popular, coreless and sweet fruit

has been recognised as an antidote against heart

attacks and is exported in large consignments na-

tionally and internationally. Another notable fruit to

take its place among the resplendent Chiltern acres

are blueberries, which are vociferously consumed

in the United Kingdom.

Even in tough times Chiltern Farms’ apples

or pears or, indeed, Sharon fruit have risen

above adversity to provide nourishment and good

health to millions of fans worldwide. When you

tuck into a rewarding treat from the fruit bowl

suddenly ‘credit crunch’ takes on a whole new

meaning. TAB

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

MOTOr HeADuD Trucks

066

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

TrAnspOrTATiOn

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

68 TRANSPORTATION � uD Trucks

As wiTH Any aspect of motoring, it helps if you

know what you’re doing. You certainly won’t find

people at UD Trucks peering under bonnets and

scratching their heads. Indeed, when a company

has been passionately building, improving, nur-

turing and generally tinkering with engines as

long as this company, you know that your journey

will be a smooth one.

With over seven decades of experience and literally millions of miles on the clock uD Trucks is the epitome of the well-oiled machine.

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69SEPTEMBER 2011 � The African Business Journal

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70 TRANSPORTATION � uD Trucks

In reverseUD Trucks first hit the road back in 1935, when

the company was founded in Japan by a German

diesel enthusiast called Kenzo Adachi. The busi-

ness began by manufacturing diesel engines in

Tokyo under the name of Nihon Diesel Industry.

Over the next 13 years the company would

release several new models, while trading un-

der a number of different names. In 1953 the

ground-breaking Uniflow ‘scavenging’ diesel

engine was launched and five years later, Minsei

Diesel—as the company was then known—was

acquired by Nissan Motor Corporation. At this

point the UD Trucks Corporation was born and

the company was firmly established as one of

Japan’s leading diesel manufacturers.

The company continued to break new ground

and in 1973 became the top heavy-duty truck

manufacturer in Japan. By 1984, Nissan Diesel

trucks were exported to 140 countries worldwide.

African Business Journal-SYSPRO supply chain.indd 1 8/12/2011 3:25:50 PM

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71SEPTEMBER 2011 � The African Business Journal

African Business Journal-SYSPRO supply chain.indd 1 8/12/2011 3:25:50 PM

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

72 TRANSPORTATION � uD Trucks

African odysseyUD Trucks Southern Africa has enjoyed a proud

history of success since it was established in

1962. It is easily UD Trucks Corporation’s top

market outside Japan. Over the years, the com-

pany has built a strong reputation as a credible

and successful truck supplier, boasting un-

equalled flexibility in the industry.

In 2002, Nissan Diesel South Africa (NDSA)

was formed, separating the company from

Nissan South Africa in the process. During the

following year, the company moved all its facili-

ties to new premises in Rosslyn, underlining its

independence and setting the stage for a new

era in which the company could focus entirely

on the trucking industry.

General manager of corporate planning and

marketing Rory Schulz thinks that the UD ethos

has been instrumental in their African expan-

sion. “Through innovative engineering, aimed

at generating benefits for people and the envi-

ronment, UD Trucks has applied the technolo-

gies that it has amassed in the diesel engine

field, to produce an even greater range of

comfortable, safe and environmentally friendly

vehicles,” he said.

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73SEPTEMBER 2011 � The African Business Journal

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74 TRANSPORTATION � uD Trucks

“Through innovative engineering, aimed at generating benefits for people and the environment, uD Trucks has applied the technologies that it has amassed in the diesel engine field, to produce an even greater range of comfortable, safe and environmentally friendly vehicles.”

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75SEPTEMBER 2011 � The African Business Journal

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76 TRANSPORTATION � UD Trucks

Johannesburg21 Brunel StreetTulisa Park,Johannesburg, 2197Tel: (011) 613-1070Fax: (011) 623-1097

DurbanUnit 1, 36 Alexander Rd.Westmead, Pinetown, 3610Tel: (031) 700-9017Fax: (031) 700-9079

[email protected]

Cape TownUnit 4, Henton Park,25 Stella RoadMontague GardensCape Town, 7441Tel: (032) 555-1239Fax: (021) 555-1278

Aero Truck supplies innovative aerodynamic solutions for the Southern African trucking industry. As SA's leading manufacturer and supplier of truck aerodynamic systems we provide state of the art aerokits for all makes and models of trucks. Where required we also undertake development projects examples of which are Barloworld's environmentally friendly "Green Truck" and Baker's Transport Advanced Aerodynamic test vehicle. With over 20 years experience Aero Truck is are able to provide the service levels our customers expect together with the expertise to ensure that you too see real savings on your fuel bills. We also supply one of SA's strongest and most stylish range of bullbars for trucks: The Ecobar.

WE TAKE THE DRAG OUT OF TRUCKING

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

77SEPTEMBER 2011 � The African Business Journal

Brand loyaltyUD Trucks Southern Africa only offer vehicles

engineered, developed and rigorously tested

to combat the unique terrain of the region. The

company also continues to develop its footprint

in the African market wherever fleets can benefit

from its efficient design, state-of-the art technol-

ogy, quality assembly and dependable support.

The company places great emphasis on

building long-term relationships with custom-

ers by providing ongoing support throughout a

product’s lifecycle. UD Trucks Southern Africa’s

dealers remain committed to providing their cus-

tomers with innovative transport solutions and

service offerings, built on trust, in-depth industry

knowledge and priceless technical skills.

“As part of its on-going commitment to the

truck industry, UD Trucks Southern Africa con-

tinually engineers quality local options to meet its

customers’ demands and to develop innovative

products for the Southern African market and its

unique conditions,” added Rory.

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78 TRANSPORTATION � uD Trucks

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79SEPTEMBER 2011 � The African Business Journal

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80 TRANSPORTATION � uD Trucks

UD Trucks Southern Africa currently has

dealers in Angola, Botswana, Lesotho, Madagas-

car, Malawi, Mauritius, Mozambique, Namibia,

Seychelles, Swaziland, Zambia, Zimbabwe and is

currently investigating a number of opportunities

for expansion across the region.

Suiting all needsThe Quon range is the embodiment of outstand-

ing ‘extra-heavy’ commercial vehicles, and has,

since its launch, positioned the company at the

forefront of the sector. Researched, developed

and refined to suit local conditions, the Quon

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81SEPTEMBER 2011 � The African Business Journal

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82 TRANSPORTATION � UD Trucks

range has been specifically designed to provide

customers with the best in heavy duty trucking.

UD Trucks’ ‘heavy’ commercial range is

geared to achieve excellent fuel consumption,

ensuring that a high average speed is achieved

to boost productivity. The class-leading perfor-

mance of these units is achieved by the unique

combination of engine power, transmission and

final drive ratios. With its proven flexibility and

superb durability, this series is ideally suited to

meet the needs of the distribution sector.

UD Trucks Southern Africa’s range of Medium

Commercial Vehicles not only adheres to Euro II

emission regulations, but continues to exceed

the expectations of customers in various applica-

tions. The company takes great care to ensure

that it provides a high quality product to sustain

our objective of providing the highest possible

level of durability.

Customer satisfactionBuilt on a passion for engineering, reliability

and customer relations, UD Trucks has always

offered a competitive edge in a challenging

market. The company is determined to adapt to

the changing needs of customers and deliver

755 Rood Street, Hermanstad 0082 • P.O. Box 50079, Hercules 0030, South AfricaTel: 012 379 4241 | Fax: 012 379 4240

PRETORIA ENGINEERS

SPECIALISTS IN TRUCK CHASSIS LENGTHENING AND SHORTENING

Established in 1931

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83SEPTEMBER 2011 � The African Business Journal

services and products that go beyond what

is expected.

“We want to contribute to the performance of our customers’ businesses by always endeavouring to offer products that strive to give the most efficient lifecycle possible. We aim to thoroughly and completely understand customers’ needs, and then provide them with services and products that fit their businesses,” enthused rory.

UD Trucks’ staff is continuously trained in

accordance with the latest developments, equip-

ping them to solve problems faster and assist

customers in finding the right solution in the

shortest space of time.

With such endearing enthusiasm for trucks,

engines and mechanical wizardry it appears that

UD Trucks has many more landmarks to reach,

proving that ‘reinventing the wheel’ does have its

uses after all. TAB

www.uDTrucks.cOM

BUSMARK 2000

For further enquiriesplease contact

Danie Human on+27 (0)11 412 [email protected]

We have the bus for you“Quality, Safety, Reliability & Innovation”

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

TrAnspecThe industrial body builders

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

TrAnspecThe industrial body builders

085

TrAnspOrTATiOn

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86 TRANSPORTATION � Transpec

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87SEPTEMBER 2011 � The African Business Journal

Whether through customisation or modification, body building firm Transpec is providing its ambitious clients with solutions to suit their flourishing fleets.

As glOBAl Businesses look to invest in Africa, the

role of local companies in supplying the equipment

needed to boost growth is quickly coming into focus

and gaining in importance.

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

88 TRANSPORTATION � Transpec

The South African commercial vehicle body

building firm and trailer manufacturers Transpec is

one such business profiting from the increased in-

vestment made in the continent’s industrial sectors.

Established in 1985, Transpec has grown from a

relatively small position within its industry to become

one of the major players in South Africa’s body build-

ing and trailer manufacturing environment.

Based in the eastern South Africa state of

KwaZulu-Natal, Transpec is a body building firm

that aims to work with its customers to provide

those complicated, but effective transport solutions

that tend to lead to repeat business, according to

the firm’s Financial Director Rowan Alford.

Whether its tippers, tankers, panel vans,

semi-trailers or drawbar trailers, Transpec is able

to offer its clients a broad range of services.

Through the customisation of commercial

vehicles the company is able to provide many

applications required in the transport industry;

from painting the cab and body to fleet colours

to providing a hydraulic installation, the firm has

been supplying its customers with top-of-the-line

service for more than 26 years.

Growing alongside South Africa’s progressThe company has a rich history and from its main

hub in Pinetown, has been able to react positive-

ly to a changing and volatile marketplace.

“Since becoming a democracy [in 1994]

there has been a lot more growth in the country,”

says Alford. “The South African economy has,

in general, performed pretty well and since that

time we’ve grown by adapting and increasing the

size of our production facility.

“over the years, we’ve sustained the business by adding extra production capacity and by also diversifying our products in different areas of the transport industry and covering as many bases as possible.”

“We’ve started tapping markets we’ve never

worked in before and we’ve started working on

a lot of agricultural transport equipment in both

the sugar and timber industries,” Alford adds.

We also moved into the waste removal market

in terms of bringing compacters online, and skip

loaders and hook lifts, are some of the new prod-

ucts added to the range.”

On the construction side of the business,

Transpec supply tippers and tankers, to a large

selection of infrastructure building currently tak-

ing place in South Africa.

Into the African business jungleToday, Transpec is integrating its ambitious targets

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89SEPTEMBER 2011 � The African Business Journal

DELFLOW (Pty) Ltd.Postnet Suite 62 Private Bag X1569 Glenvista 2058Tel: 011 826 3443 Fax: 011 826 4340e-mail: [email protected]. No.:2007/012011/07

We offer a range of services such as system design, manufacture of hydraulic and pneumatic systems, field service, and repair of all types of hydraulic equipment.

Delflow are importers of the following brands:

• Duplomatic Oleodinamica Spa- directional valves, pressure control valves and pressure compensated vane pumps.• Aber - PTO’s, PTO pumps and all truck hydraulic-related products.• Ronzio Oleodinamica Spa - aluminium gear pumps group 1 to 3.• VPS - Brevini control valves• SAM – Low speed hydraulic motors

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

90 TRANSPORTATION � Transpec

for growth with the developing economies in coun-

tries directly north of South Africa.

“This year, about 40 per cent of our turnover

is from the export markets, which represents a

real turn around,” says Alford. “We were doing

quite a bit of export into Africa in the early 2000s

when the Rand was relatively weak and it was

quite cheap to buy equipment.

“But it was in this period that I think we es-

tablished ourselves as a supplier into Africa,” he

adds. “We gained a lot of experience in deliver-

ing equipment into Africa—especially in markets

where conditions can be quite challenging.”

Alford says that the company’s main export

markets are moving beyond the countries it has

traditionally serviced and into states in the central

region of the continent, as well as neighbouring

countries experiencing recent industrial growth.

For example, in recent months the company

has sold 15 sets of timber trailers in Tanzania,

and has received an order for 20 sets of side-

tipping trailers from Mozambique’s coal sector.

Transpec is also experiencing a growing

demand from the agricultural sector, notes Al-

ford, with equipment for the sugar industry being

sought, which he claims is moving further north.

“Sugar growers are going north because it’s

warmer and they can generate better yields,” he says.

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91SEPTEMBER 2011 � The African Business Journal

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92 TRANSPORTATION � Transpec

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93SEPTEMBER 2011 � The African Business Journal

“But we’ve also found that our clients are ap-

proaching us after seeing our products in opera-

tion across Africa.”

Investment in infrastructure and construc-

tion in the region has led Transpec to attempt

to tap into these industries. Alford says that the

company is exporting a lot of construction-based

equipment across Africa with road building proj-

ects in Congo and Malawi proving to be success-

ful ventures for the firm.

“We are also collaborating with a large global

company where we are working on the body of

all the vehicles it is bringing to the region from

Japan,” remarks Alford. “This means we’re mov-

ing into markets in places such as Zambia, Zim-

babwe and across other parts of Africa.

“There’s a lot of movement into the conti-

nent, and I think it is where the next growth sec-

tion is going to be. But even our own domestic

market, despite having been a little quiet in the

past couple of years, is beginning to rear its head

again and is looking much stronger.”

This renewed market confidence is music to

the ears of Alford, who says that both 2009 and

2010 were “shocking years” with low vehicle

sales across South Africa. The company’s abil-

ity to meet a diverse selection of demands has

helped it overcome any problems it was suscep-

tible to in the past two years.

“Demands in our industry are often seasonal because of the different industries we work with such as sugar,” says alford. “What we do is move our production concentration to whatever the biggest demand at the time is. This has given us a lot of flexibility and by having a wide product range we have managed to keep our head above the water.”

As heavy industry sharpens its focuses on the

vast resources in the southern half of the African

continent, Transpec has found itself in a comfort-

able position despite the difficulties associated with

the global economic downturn. TAB

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

iMperiAl Truck renTAlsThe truck stops here094

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

iMperiAl Truck renTAlsThe truck stops here

TrAnspOrTATiOn

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

96 TRANSPORTATION � Imperial Truck rentals

The word ‘imperial’ conjures up a reassuring impression of authority, experience, reliability and trust—precisely why this company put their name to it.

THe yeAr 1975 was unforgettable in many ways. A blockbusting shark

with a vendetta shocked a generation of cinema-goers into cancelling

their swimming lessons forever, snarling young punk rockers The Sex Pis-

tols played their legendary first gig and Arthur Ashe delighted the book-

makers by beating favourite Jimmy Connors at Wimbledon.

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97SEPTEMBER 2011 � The African Business Journal

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98 TRANSPORTATION � Imperial Truck rentals

While all this was going on plans were being

laid out to form the company that would eventu-

ally become Imperial Truck Rentals—one of the

leading vehicle hire companies in South Africa.

Yep, it was a pretty vintage year.

Gear changeWhen the company was created by Percy Abelkop in

those halcyon days 36 years ago, it began by selling

used commercial vehicles. After recognising oppor-

tunities in the industry, however, it realised the long

term prospects of renting their vehicles were much

better. The new operation started on a small scale,

with 15 vehicles and only two members of staff but

it immediately saw success, resulting in a gradual

enlarging of the fleet.

As it became increasingly profitable the compa-

ny started to obtain a wide variety of different vehi-

cles for every type of job, establishing a reputation

for specialising in all types of commercial vehicles

from half tonne LDVs to huge articulated tractors.

The company currently has over 1,300 vehicles on

its books and this figure continues to rise.

Imperial Truck Rentals supplies its vehicles

on a supply and demand basis, with contracts

drawn up immediately for long and short term

periods. It also has some lucrative long term ar-

rangements as a preferred supplier with major

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99SEPTEMBER 2011 � The African Business Journal

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100 TRANSPORTATION � Imperial Truck rentals

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

101SEPTEMBER 2011 � The African Business Journal

24 Hour Roadside Assist 0800 008

800www.udtrucks.co.za

Built on a strong foundation of Ultimate Dependability, a passion for the industry and a professional approach to everything we do, UD Trucks Magnis Bloemfontein is

committed to delivering services and products that go beyond the expected.

As a name synonymous with quality trucking solutions and products since 1968, the dealership is dedicated to adding value to your business by facilitating

vehicle purchases, and ensuring that our customers receive quality technical support and continued parts supply - on time and at a competitive price.

Please contact Graham Howes 071 607 9716 or Dennis Howes 082 293 8159

109 Fritz Stockenstroom Street, East End, Bloemfontein

Tel: (051) 432-0280

www.magnistrucks.com

MagnisBloemfontein

Product shown in photograph is for illustration purposes only, and is subject to stock availability.

Making Light Work of Extra Heavy Loads

With class-leading operation performance, high levels of safety and a focus on driver comfort, UD Trucks’ Quon range offers the best in extra heavy trucking.

The Quon range is powered by the proven reliance and economy of UD Trucks’ quality engine series, and delivers low fuel consumption through

increased combustion efficiency. A number of chassis variations are available to meet various load and road surface challenges, positioning

the Quon range at the forefront of profitable transport solutions.

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

102 TRANSPORTATION � Imperial Truck rentals

corporations in South Africa.

The workforce now runs to 200 permanent

staff, but if a customer requires a driver or crane

operator the company hires in a person to do

that specific job. With this considered there could

be up to 1,000 people working for Imperial Truck

Rentals at one time.

Some of the most popular vehicles with the

best returns include crane mounted systems,

eight tonne vans, tow lift trucks and refrigerated,

light commercial, 4x4 and double cab vehicles.

Service provision is a top priority and Manag-

ing Director Martin Breed thinks that reliability has

been the key. “Cementing customer relationships is

essential. We offer the best quality service, selec-

tion of vehicles and technical support and our

record indicates that people appreciate it. They are

assured of excellent service 24/7, and our fleet is

available at any time. We’re the only company that

offer this level of commitment.”

Good handlingContinuity has always been an important feature

of the business which, since its inception, has had

the same owners. At the beginning the company

was entirely private before being listed in the early

1990s on the Johannesburg stock exchange and

since then it has been trading as a public company.

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103SEPTEMBER 2011 � The African Business Journal

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

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

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

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

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

The automatic choice. T

OY

T13

9891

/JH

B/E

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

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

104 TRANSPORTATION � Imperial Truck rentals

When founder Percy Abelkop retired in the

nineties Bill Lynch took over and three years ago

Hubert Brody took the wheel. The company is

now managed on an entrepreneurial basis by a

team of directors who are constantly looking for

new business and increasing profitability. New

growth objectives are set every year and the com-

pany regularly achieve, and surpass targets.

Ironically, the global downturn has actually

had a positive effect on the company. It was a

rare occasion when the situation actually pro-

duced an incredibly impressive balance sheet.

Breed explains, “When the economy was in a

downward mode during the recession there was

actually an improvement. While they waited for the

recession to subside trucking businesses, instead

of buying fleets, would rent vehicles instead. Last

year when the economy wasn’t that hot there was

an improvement of over 48 per cent.”

Well-oiled machineAlthough the company is still most prominent

in its native South Africa and still very much an

advocate of the Rand, it has recently broadened

its horizons further into Africa, with vehicles run-

ning in Sierra Leone, the Democratic Republic of

Congo, Mozambique and Tanzania.

With operations so dispersed the company

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

105SEPTEMBER 2011 � The African Business Journal

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

106 TRANSPORTATION � Imperial Truck rentals

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

107SEPTEMBER 2011 � The African Business Journal

Our company has been a proud supplier to the Imperial Group since 1982, and we have both grown together since then into the prestige brands that we are today. We have always strived to supply excellent service, quality and price to Imperial workshops and thus have built a relationship which has been mutually beneficial and allowed us to both succeed.

Recently we have joined the family of Imperial Truck Rental by becoming a CBS franchise- part of Parts Incorporated Group- further cementing our close symbiotic relationship in the supply and demand chain, and proving our belief in the future of the winning team.

JOHANNESBURG BRAKE & CLUTCH141 Albert StreetCity & SuburbanPO Box 34047, Jeppestown 2043

Tel: 011 334-6934/5/6/7 | Fax: 011 334-5671Email: [email protected]

had to develop a state of the art and highly so-

phisticated computer system. The software de-

termines the availability of vehicles, where they

are running, who the customer is and, perhaps

most impressively, the exact number of kilometres

driven during each and every one of its thousands

of assignments.

“It’s all there on an integrated computer sys-

tem. When the vehicle moves for instance from

the branch into the work shop for repairs it will

show on the system. No kilometre is will ever go

missing,” added Breed.

As the company progresses with its expan-

sion plans it will invest in many new vehicles,

continuing to offer the most extensive and cut-

ting edge fleet of vehicles in Africa.

These days everything has to be an emotional,

mental and physical ‘journey’. For Imperial Truck

Rentals, it really has been. TAB

www.iMperiAlTruckrenTAl.cO.zA

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

Sable homeswilling AnD sABle108

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

Sable homeswilling AnD sABle

cOnsTrucTiOn

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

110 CONSTRUCTION � Sable Homes

KONSTRUKSIE & PROJEKBESTUUR

WE DELIVER........ON TIME

PLOT 243 SWAVELPOORT • LYNWOOD ROAD EXTENSION • PRETORIAP.O. BOX 2155 • ZWAVELPOORT 0036 • TEL: 012 811 2777 • FAX: 012 811 2780 • [email protected]

REG NO. 1989/025338/23

Elkon was founded in 1989 and specialise in upmarket housing developments. We have successfully completed projects of various magnitudes including factories, urban development refurbishments and cluster developments. The company’s activities are based on 2 main functions namely construction and project management.

22

With the population rising and demand for new, original properties growing by the day, it is reassuring to know that Sable Homes love building incredible properties and great relationships.

In the current climate people are becoming

increasingly reliant on their homes as places to

relax, socialise, entertain, work and generally

reflect their personalities. It certainly helps if the

buildings themselves are welcoming structures

that residents feel immensely proud of.

As far as Sable Homes is concerned the hap-

piness of their customers is the essential foun-

dation upon which the company continues to be

built. Indeed, for almost twenty years it has been

projecting its enthusiasm for housing through

thousands of brilliantly functional and very at-

tractive properties. Properties that inhabitants

are proud to call home.

Scaling the heightsBack in 1993—just as South Africa teetered on

the brink of a brave new era—Sable Homes was

formed, creating its very own piece of history.

Originally the business was founded by Sable

Holdings Abcon Group in order to take on the

residential development responsibilities of the

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

111SEPTEMBER 2011 � The African Business Journal

ABJ HALF PAGE AD.pdf 1 2011/08/19 5:30 PM

Abcon Group of companies. Previously, the Group

had only focused on commercial and retail de-

velopments, but were keen to venture into resi-

dential properties. After its initial success Sable

Homes then expanded further to create Sabreal

Property Management, which oversees the man-

agement of some of Sable’s projects and also

handles rentals.

With the first chapter of the company’s his-

tory well and truly written Sable Homes now

stand out as property developers with an unre-

lenting and determined focus on superior quality

constructions that embody character, style and

finesse. Its reputation has earned it a place as

one of South Africa’s leading and most trusted

property developers—transforming lives and mak-

ing dreams a reality.

Managing director Anthony Bonnett de-

scribes the company’s ethos: “We have built

our reputation on quality, innovation, excellent

standards and reliability in a highly competitive

environment. It is through our spirit that we are

creating not just fabulous homes, but rewarding

lifestyles for our clients.”

With its vast pool of expertise, meticulous

management and two decades of innovative

design and successful project completions Sable

also provide peace of mind for their clients. Bon-

nett explains: “Over the last 20 odd years our

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

112 CONSTRUCTION � Sable homes

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

113SEPTEMBER 2011 � The African Business Journal

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

114 CONSTRUCTION � Sable Homes

country has seen many development companies

formed and fall by the wayside, as the property

boom sprung up and crashed. Unfortunately this of-

ten means life savings and fortunes are lost owing

to unscrupulous or mismanaged practices. With a

name and history as big as ours, the property buyer

won’t lose any sleep.”

DedicationSince the beginning Sable Homes has always

strived to constantly change and adapt products

and services to meet the ever-changing demands

of the property market. It is passionate about grow-

ing in harmony with new ideas, technology and

expectations.

The company’s ever-expanding array of offer-

ings features greenfield land development, estate

development, sectional title homes and apart-

ments. In addition its portfolio includes retirement

and even golf estates. Sable has also recently

started delivering complete building packages.

Its prestigious position as the residential prop-

erty developer for the Hazeldean nodal develop-

ment in Pretoria East, Gauteng, is its most exciting,

ambitious and lucrative to date. Hazeldean is a

huge project which, on completion, will introduce

an astonishing compendium of residential develop-

ments, shopping centres, office parks, entertain-

ment venues, park-areas, schools and hospitals.

“From first contact, to the ceremonial hand-

ing over of the keys, we are instrumental in the

entire process of building and acquiring dream

homes. We pride ourselves on the skill and ex-

pertise of every staff member,” added Bonnett.

The company currently has 30 dedicated,

highly skilled and experienced employees. They

will be aiming to increase Sable’s market share

in the Gauteng region, while cultivating its repu-

tation as the property developer of choice for any

potential home-buyer or investor.

Green daysThe Hazeldean development is one of the big-

gest green projects in Gauteng, and a substantial

investment has already been made in ensuring

that the project has a completely eco-friendly

infrastructure. It is Sable’s policy to use only

indigenous plants and trees, while maintaining

existing wetlands and green areas in Hazeldean.

In the course of other projects, notably Heron

Banks Golf and River Estate, the sites—which are

situated along the Vaal River—were severely im-

pacted through previous land usage and natural

hydrological flows were impacted by sand mining,

eucalyptus plantations, dirt tracks and informal

agriculture. In response, Sable has realigned

the structure of the wetlands to accommodate

the restoration of precious local biodiversity. The

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

115SEPTEMBER 2011 � The African Business Journal

company is passionate about making full use

of the natural environment and is committed to

sound ecological practices.

Social media has also been fully embraced

by the company, helping it to communicate with

clients and established investors, providing them

with useful information and updates.

Sable’s refreshingly modern outlook means

they will continue to be inspired by the very land-

scapes they are building on. It’s a positive philoso-

phy that’s, quite literally, set in stone. TAB

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Aon05151 Sable Ad.indd 1 2011/07/28 10:03 PM

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

The South african electrical specialist Penbro Kelnick has worked on some of the continent’s largest construction projects and is showing its big-name clients that quality remains king in times of financial hardship.

penBrO kelnick is one of South Africa’s energy systems and power

distribution installation industry’s leading lights, and is showing its com-

petitors how putting focus on product quality and employee satisfaction

can pay off handsomely.

penBrO kelnickelectric dreams

116

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penBrO kelnickelectric dreams

cOnsTrucTiOn

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

118 CONSTRUCTION � Penbro Kelnick

The company is committed to staying true to an

original formula that has worked for it for many years,

and through the quality craftsmanship of its products

has ensured a large degree of repeat custom.

Born in Germany, Van Aarde moved to South

Africa in 1948 and joined Penbro in 1964, and

has since played a big role in the growth and per-

formance of the company.

Van Aarde won the approval of the local

community by creating a large number of jobs

through his decision to employ people rather

than utilising man-made machinery.

Product quality assuredPenbro has provided its services to construction

The firm, whose interesting name derives from

an amalgamation of the names of its two founders

Penchard and Hutton-Brown, began life building

short-wave converters for AM radio receivers.

When Penchard resigned from Penbro to

start his own radio production company, Hutton-

Brown transformed the company into a manufac-

turer of transformers, wire-wound resistors and

coils for contractors.

Originally named Penbro Convertors when

the company was founded in 1949, it was re-

named in 1980 due to its partnership with Kel-

nick Development.

With its broad and versatile range of prod-

ucts, which includes transformers and resistors,

the company has grown to become one of the

region’s leading electronics specialists.

“We started with only five people and now we

have 120,” says Penbro Kelnick Managing Direc-

tor Herman van Aarde. “The market has changed

quite a bit. We try and manufacture all the old

stuff. We’re one of the very few companies that

still manufacture the stuff we did 30 years ago.”

Throughout its long history Penbro has em-

braced change and through its vast experience has

manufactured a diverse array of products such as

electro-mechanical phase-sequence relays. Penbro

has also built a winding machine for the manufac-

turing of edge-wind resistors in railway locomotives.

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

119SEPTEMBER 2011 � The African Business Journal

projects and power systems upgrades including

railways, hospitals, stadiums—including some of

the stadia at last year’s FIFA World Cup in South

Africa—and the telecoms sector.

The South African company also has a metal

fabricating department that is able to construct

distributor cabinets.

But it prides itself on the quality of the design

and manufacture of each of its products. Quality

is of the highest significance to Penbro and when

it designs a product it makes sure to implement

reliable components.

It is committed to an intense programme of

research and development in each of its prod-

ucts, often working with its customers in the

“Who do I approach for value in providing an innovative solution to my business?....”

High service levels, after sales support and South African expertise backed by technical support from leading global suppliers.

Rotating MachinesConductor, insulation materials, resins, kits and composites for LV, MV, traction motors and power generators. TransformersRaw materials, components, kits, composites and auxiliary equipment for power and distribution transformers. BearingsPremium quality bearings into the electric motor, conveyor and mining industries.

JOHANNESBURG (HEAD OFFICE) +27 (11) 629 9300 | DURBAN +27 (31) 569 4883CAPE TOWN +27 (21) 556 5720 | MIDDELBURG +27 (13) 246 2330/1PIETERMARITZBURG +27 (33) 345 0264

0 8 6 1 1 W I L E C [email protected] www.wilec.co.za

Te c h n i c a l S o l u t i o n s P r o v i d e r

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

120 CONSTRUCTION � Penbro Kelnick

design and implementation of its products to

ensure efficiency and reliability.

Its most popular products include power resis-

tors, which are used in applications such as heat-

ers, crane control systems, dynamic braking of AC

variable frequency drives, electric motors, load

testing of energy sources, neutral grounding of AC

transformers/generators and harmonic filters.

Penbro manufactures three main resistors,

including wire-wound resistors, oval and round

edge wound resistors, and continuous ribbon

resistors, and is the sole distributor of back-up

power systems for two French companies.

The electrical specialist also manufactures

standard load banks, used for applications such as

battery integrity testing and equalisation, dynamic

braking of AC variable frequency drives, crane and

elevator control systems, electric motors and load

testing of AC and DC energy sources.

The company services equipment throughout

Africa and provides training for local communities.

“We service equipment in Malawi and Tan-

zania and provide service on a contract basis.

We do training for local people and are a support

basis for them,” says van Aarde.

Penbro is looking to expand throughout the

wider African continent and has aims of estab-

lishing another branch outside of the continent in

order to spread its products and farther afield.

Structurally sound, philosophically purePenbro consists of seven different departments,

all of which are interconnected. Employees are

given access to the managing director and many

employees have been at the firm for an average

of 15 years, thereby demonstrating Penbro’s

commitment to its employees and the close

working relationship it has with its workers.

“One of the reasons why Penbro stands out

from its competitors is that everything we sell

is manufactured in house,” remarks van Aarde.

“We have a strong design and we are one of the

only companies that make certain products, so

we are one of the only companies who make

some products in South Africa.”

The company prides itself on its reliable

workmanship and product, even when faced with

recession or a downturn in the economy. Despite

the effects of the global economic crisis the

company has avoided making major layoffs while

ensuring that the quality of its products remains

at the highest possible level.

“Other companies try to cut down on cost;

we avoid that by doing more service. What will

happen is that we’ll take over complete service

contracts,” says van Aarde.

Penbro has undergone a lot of transformations

since its formation many years ago, but the compa-

ny’s commitment to excellent customer service and

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121SEPTEMBER 2011 � The African Business Journal

quality-assured products has remained intact.

The company is committed to quality crafts-

manship and hiring ethically, and many of its

employees are also co-owners of Penbro. In many

cases the company has even lent a hand to the

lives of its workers by assisting them in building

their own houses.

This type of commitment to its employees

has led the company to receive a level four BEE

(Broad Based Black Economic Empowerment

Certificate) contributors score.

Having worked as a supplier and installer

to a number of large projects, including Cape

Town’s Green Point Stadium and Port Elizabeth

Stadium, and having been commissioned by a

large number of big-name clients such as the

Bank of Tanzania, Penbro is emerging from the

recession with its strong reputation in South

Africa and abroad intact, and is no doubt look-

ing forward to an electric future. TAB

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

elB equipment 122

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

elB equipment MOVing HeAVen AnD eArTH

cOnsTrucTiOn

122

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

124 CONSTRUCTION � elB equipment

The South african earthmoving, construction and mining equipment supplier elB equipment is providing high quality machinery in a cost effective manner while maintaining high levels of customer service.

Big prOJecTs neeD big machines and in order to be productive a developer must rely on

those companies able to provide high-quality and efficient machinery.

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

125SEPTEMBER 2011 � The African Business Journal

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

126 CONSTRUCTION � elB equipment

ELB Equipment is one such supplier, offer-

ing its customers a broad range of earthmoving,

construction, mining and quarrying equipment

and solutions.

The South African company represents a

number of internationally-renowned manufactur-

ers whose products have been designed to meet

a range of international standards, strict emis-

sion guidelines and safety control regulations.

“We provide a large range of specialist solu-

tions that enhance our clients’ profitability and

we bring machines from across the world into

southern Africa,” says ELB Equipment Director

Desmond van Heerden.

From its earthmoving equipment division

ELB is able to supply clients with a range of

earthmoving equipment products that includes

wheel loaders and tracked excavators. From

its construction equipment division the range

includes backhoe loaders, chain trenchers, di-

rectional drills and motor grader, while hydraulic

hammers, rock drills, and mobile and static crush-

ing and screening plants are available through its

mining and quarrying equipment division.

DESIGNED BY THE OWNER FOR THE OWNERTHE NEW TEREx® TlB840With 50 years of engineering expertise, we’re proud to present the 9th generation Terex® backhoe, our most versatile and efficient backhoe loader yet . . . designed around you and your work. With its spacious new cab, curved excavator boom and servo power transmission system the TLB840 maximises your productivity and profitability on the most demanding job sites. Whether digging, reaching, lifting or loading, the TLB840 is breaking new ground in South Africa.

To find out more about the Terex® TlB840, phone +27 11 306 0700 or visit www.elbequipment.com

What this means for you Spacious and ergonomically designed operator cab for

increased comfort and productivity.

Curved boom for closer loading into trucks and greater

obstacle clearance.

“Deep Dig” dipperstick for the clamping of objects between

bucket and dipper with optional thumb attachment.

High performance 94hp (70kW) charge air cooled engine

with a servo power synchro transmission for smooth and

economical operation.

TEREX DISTRIBUTION LTD

HEAD OFFICE: 14 Atlas Road Anderbolt Boksburg Tel (011) 306-0700 Fax (01) 918-7208 e-mail: [email protected] www.elbequipment.com

Bloemfontein: (051) 432-3594

Brits: (012) 250-1565

Cape Town: (021) 933-2383

Durban: (031) 464-6522

George: (044) 878-0874

Kimberley: (053) 841-0040

Middelburg: (013) 246-2312

Nelspruit: (013) 755-1003

Polokwane: (015) 293-1978

Port Elizabeth: (041) 581-0774

Wolmaransstad: (018) 596-3032

Botswana: (00267) 240-4320

Namibia: (00264) 61-302-2718

Swaziland: (00268) 518-5348

Zimbabwe: (00263) 913-493-849

Zambia: (00260) 212-210-642

© Terex Corporation 2011 – Terex is a registered trademark of Terex Corporation in the United States of America and many other countries.

02318 Terex TLB840 Ad-South Africa 273x210.indd 1 18/08/2011 14:34

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

127SEPTEMBER 2011 � The African Business Journal

DESIGNED BY THE OWNER FOR THE OWNERTHE NEW TEREx® TlB840With 50 years of engineering expertise, we’re proud to present the 9th generation Terex® backhoe, our most versatile and efficient backhoe loader yet . . . designed around you and your work. With its spacious new cab, curved excavator boom and servo power transmission system the TLB840 maximises your productivity and profitability on the most demanding job sites. Whether digging, reaching, lifting or loading, the TLB840 is breaking new ground in South Africa.

To find out more about the Terex® TlB840, phone +27 11 306 0700 or visit www.elbequipment.com

What this means for you Spacious and ergonomically designed operator cab for

increased comfort and productivity.

Curved boom for closer loading into trucks and greater

obstacle clearance.

“Deep Dig” dipperstick for the clamping of objects between

bucket and dipper with optional thumb attachment.

High performance 94hp (70kW) charge air cooled engine

with a servo power synchro transmission for smooth and

economical operation.

TEREX DISTRIBUTION LTD

HEAD OFFICE: 14 Atlas Road Anderbolt Boksburg Tel (011) 306-0700 Fax (01) 918-7208 e-mail: [email protected] www.elbequipment.com

Bloemfontein: (051) 432-3594

Brits: (012) 250-1565

Cape Town: (021) 933-2383

Durban: (031) 464-6522

George: (044) 878-0874

Kimberley: (053) 841-0040

Middelburg: (013) 246-2312

Nelspruit: (013) 755-1003

Polokwane: (015) 293-1978

Port Elizabeth: (041) 581-0774

Wolmaransstad: (018) 596-3032

Botswana: (00267) 240-4320

Namibia: (00264) 61-302-2718

Swaziland: (00268) 518-5348

Zimbabwe: (00263) 913-493-849

Zambia: (00260) 212-210-642

© Terex Corporation 2011 – Terex is a registered trademark of Terex Corporation in the United States of America and many other countries.

02318 Terex TLB840 Ad-South Africa 273x210.indd 1 18/08/2011 14:34

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

128 CONSTRUCTION � elB equipment

As well as providing its clients with specialist

solutions and a broad portfolio of movable ma-

chinery, ELB’s vision statement says that it aims

to be “alert and ready to meet the requirements”

of its customers, shareholders, employees and

business associates.

It is committed to achieving excellence in

product distribution and aftermarket service, and

has pledged to its shareholders that it will main-

tain long-term growth. ELB’s ambitious aims are

being met in part due to its commitment towards

the continual development of its staff, ensuring

that they act with high levels of professionalism.

“Moral values are pretty strong throughout

the group,” says van Heerden. “We’re an organ-

isation that believes in supplying world leading

products and we give a lot of thought to the

equipment that we sell to make sure that they of

a good quality and reputable standards.”

More than a century of successThe Bateman Group was founded in 1903

by mechanical engineer Edward L. Bateman.

Bateman had emigrated from the USA to South

Africa to assist local representative Herbert

Ainsworth in selling a range of equipment to

PLANT HIRE - TRANSPORT - OPEN CAST MINING - COAL PROCESSING

TEL: 071 681 9939/12CELL: 071 680 8029FAX: 071 680 [email protected]

Isambane Mining (PTY) Ltd was formed in 2005 and is 100% owend by woman, of which 51% is owned by black women.

The company was primarily involved in the processing of coal for power stations all over the Mpumalanga area. Over the years they have grown into a leading Plant and Earth Moving Equipment Hire company with substantial contracts throughout the Mpumalanga region, consisting of coal processing transport and earth moving.

Isambane Mining (Pty) Ltd has a Zero Tolerance Safety Policy and maintains an excellent safety record with all our people and equipment ensuring that our customers gain maximum productivity without incidents or injury.A

bout

Us

C

M

Y

CM

MY

CY

CMY

K

Mining Advert.pdf 1 8/18/2011 8:36:25 AM

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

129SEPTEMBER 2011 � The African Business Journal

mines. After Ainsworth’s death in 1919 Bate-

man bought the business and operated it as an

effective and dynamic one-man operation.

More than 55 years later, ELB Equipment

Limited was established when construction

products were introduced under the Bateman

umbrella of companies. This was expanded fur-

ther in 1987 when an autonomous division with

responsibility for earthmoving and construction

equipment was formed.

By the time mining equipment was added to

its range, ELB Equipment had become one of the

most respected names in its industry.

Bateman Project Holdings Limited was sold

to an international consortium of high net-worth

individuals in February 2002, and as part of its

restructuring, the Edward L Bateman Group of

Companies reverted to its former well-estab-

lished trade name of ELB.

Today, the company is a top supplier of en-

gineered products for the infrastructure, mining,

processing and construction industries.

The company is split up into three different

divisions, covering earthmoving equipment,

construction equipment, and mining and quar-

rying equipment.

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

130 CONSTRUCTION � elB equipment

In line with the group’s name change

in 2002, Bateman Earthmoving Equipment

changed its name to ELB Equipment Ltd. It is

a decentralised division of the ELB Industrial

Equipment Holdings Group listed on the Johan-

nesburg Stock Exchange.

Machine variationAlong with its broad range of products for the

mining, construction and earthmoving equipment

divisions, ELB Equipment is busy preparing for

the South African launch of launch of the Terex

TLB840 Backhoe Loader, set to take place this

October. This ground-breaking machine is one of

the most versatile, innovative and efficient Terex

backhoe loader to date.

Designed around the operator, the TLB840

has been a host of new features aimed at en-

hancing comfort, reducing driver fatigue and

aiding productivity.

Terex Backhoe Loaders global product man-

ager Jon Beckley says: “The new TLB840 is de-

signed to maximise our customers’ productivity

and profitability in these challenging times.”

Key features of the versatile TLB840 include a

curved boom, which provides greater clearance to

reach over obstacles and load closer into trucks,

and its reduced height provides increased trans-

port clearance. The boom has a new ‘Deep Dig’

outerslide extending dipperstick, allowing for the

clamping of objects between bucket and dipper.

An optional thumb attachment is also avail-

able for grab and grip applications. High dipper

and bucket digging forces allow a dig depth to

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

131SEPTEMBER 2011 � The African Business Journal

5.4 metres while the extending dipper reaches

up to 6.7 metres at ground level.

A bright future ELB Equipment believes in supplying good,

stable product and in maintaining a good,

stable workforce, notes director Desmond

van Heerden.

“We’ve come through a recession without

retrenching a single person, while many of our

competition struggled,” he boasts. “We have

also paid half-year and full-year dividends right

throughout the recession.”

The company’s recent success has led to it

deciding to strengthen its existing footprint and

investing in some of its existing dealers, as well

as some of its own branches.

“We have spent approximately R80 million

on new facilities at our head office in Boksburg,”

remarks van Heerden. “We’ve also spent about

R6 million at our Kimberly branch and R8 million

at our Durban branch, and construction should

finish at our new R26 million facility in Middle-

burg towards the end of this year.”

With its traditional market in South Africa

continuing to perform well, ELB has found itself

venturing into neighbouring countries such as Zim-

babwe, DRC and Namibia, Swaziland and Zambia.

But with its commitment to customer service

of the upmost importance, it would surely be no

surprise for ELB Equipment to soon find itself in

demand even further afield. TAB

www.elB.cO.zA

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

erBAcOn sMAll plAnT132Tool’s gold

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erBAcOn sMAll plAnT132

cOnsTrucTiOn

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

134 CONSTRUCTION � erbacon Small Plant

Since 1996, erbacon Small Plant has been providing cutting edge equipment for the cream of South africa’s workforce, making tricky jobs a breeze and offering a variety of modern machinery to a country that is rapidly developing.

wHen peOple DescriBe a tough day at work

many claim to have ‘chipped away at the rock

face.’ For Erbacon Small Plant, however, this well-

used figure of speech is actually very accurate.

They have been providing the means to ‘chip

away’, collect, cut, build, blast, saw and seal for

the last 16 years.

Heavy dutyWith the best will in the world, if you’re a miner,

construction wizard, brash builder or rousing re-

pair guy and you don’t have tools you may as well

ditch that utility belt and tuck into those ham and

cheese sandwiches now. Civilisation wasn’t built

on positive vibes alone.

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135SEPTEMBER 2011 � The African Business Journal

Fortunately Erbacon supply the most effec-

tive, robust, professional and safe equipment, not

only to the divisions within its parent company—

Erbacon Investment Holdings Ltd.—but also many

major construction outfits throughout South Africa.

The extraordinary array of no-nonsense para-

phernalia is distributed through Erbacon’s seven

branches (including in Durban, Port Elizabeth

and Johannesburg) and its fleet of machines

stretch to well over 6,500, while its abundant

scaffolding weighs in at 2,500 tonnes. The

eclectic range of gadgets includes generators,

compressors and compaction equipment, while

smaller tools and survey equipment are also

readily available. There are five operating divi-

sions within the business—general small plant

hire, compressed air, formwork and scaffolding,

saw cutting and plant sales.

An esteemed member of Contractors Plant

Hire Association, Erbacon’s equipment tackles

a huge variety of jobs, most notably formwork

drafting, coring, joint sealing, application of poly-

urea coatings, small demolition work, concrete

repairs, sandblasting and flooring services. Such

Staffing solutions engineered with tough customers in mind.

Cell: 082 905 6142 Tel: 011 626 3290Mac Muller

www.staffuneed.co.za

We recruit all categories of staff focusing on Power Generation Maintenance & Construction.

Our Vision is to train and supply quality temporary & permanent staff and related support

services.

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

136 CONSTRUCTION � erbacon Small Plant

a diverse set of offerings ensure that companies

can often complete all their tasks using Erba-

con’s mighty machines (which feature such curi-

ous classics as the Sikalastic 841 ST).

Changing the landscapeThere are a number of projects, for which Er-

bacon has been the main supplier, that have

genuinely made a difference to the community—

cosmetically, functionally and socially. A fine ex-

ample is the ‘City Beautification’ venture in Dur-

ban which, as its name suggests, is concerned

with the aesthetics and preservation of the new

Moses Mabhida Stadium. Erbacon’s equipment

has been instrumental in improving the walk-

ways, sealing joints and transforming the parking

area around the attraction, making it one of the

most pleasing places to visit in the area.

The small plant has also been very busy in

the last few years, with many multi-million Rand

mining projects relying on its facilities, such as

the lucrative and highly successful assignment

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137SEPTEMBER 2011 � The African Business Journal

at Eland Mine. It has also been heavily involved

in the construction work at Hatfield Station and

Junction Camp in Johannesburg.

Other impressive ventures include the

R20m water supply development at the Mkhwa-

nazi Reservoir, the R100 million project to build

the sprawling campus at the University of Zu-

luland City in Richard’s Bay and re-engineering

the Durban Container Terminal.

It takes years for a company to build a solid

reputation but Erbacon has carefully used its

equipment to create a formidable business

with solid foundations. As South Africa con-

tinues to look toward a bright and prosperous

future the company is in a prime spot to help

galvanise the country by using reliability, inven-

tiveness, forward thinking and, of course, the

tools of the trade. TAB

www.erBAcOn.cO.zA

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MOOlMAn grOupSpearheading South africa’s

property investments

138

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MOOlMAn grOupSpearheading South africa’s

property investments

cOnsTrucTiOn

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140 CONSTRUCTION � Moolman Group

With a mission to maximize long-term returns for its shareholders through property investment, this South african, family-run company, Moolman Group, is one who symbolizes a modern South africa through its developments. Since 1967, Moolman Group has specialized in property investment, development and management. The company is in touch with the realities of the South african property industry and utilizes its entrepreneurial spirit in all of its varied projects.

MOOlMAn grOup wAs founded in the Limpopo

Province and has evolved over its decades of

experience into an international property de-

velopment enterprise with a diverse portfolio

of projects including corporate, government,

retail and residential. Moolman Group’s com-

pany ethos to “stay humble in times of success

and to stand firm in the face of adversity,” has

remained a guiding principal throughout the

company’s years of experience and expansion.

Project scopeTo date, Moolman Group has been working on

a number of exciting projects. One of its most

noteworthy projects of late is the colossal Mall

of the North. Pieter Lombaard, CEO of Moolman

Group says, “Recently we have been working

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141SEPTEMBER 2011 � The African Business Journal

on a few very exciting projects such as the Mall

of the North which is opening on April 14.” This

mall is Polokwane’s largest, most modern mega-

shopping centre. The mall represents the larg-

est commercial building in the province and is

jointly owned and developed by Moolman Group,

Resilient Property Income Fund and Flanagan &

Gerard Development and Investment.

The project scale is sprawling, and benefits

the community in a number of ways. All bricks,

sand and stone supplies that were used in the

Mall of the North have been supplied from local

businesses and the project has created hun-

dreds of jobs for labourers and artisans. The new

mall will have access to a range of retailers in-

cluding a 5,000 square metres Checkers, 5,500

square metres Woolworths, and a 5,000 square

metres Pick ‘n Pay. There will also be the first 3D

Ster Kinekor in the region (a popular African cin-

ema chain) housing approximately 1,000 seats.

Together with Flanagan & Gerard The group

is also working on the Middleburg Mall, which

is set to be a major shopping destination in

Mpumalanga. With plans to open in 2012, the

34,000 square metres shopping centre is per-

fectly situated next to the N4 highway and easily

accessible. The investment of R450 million is a

big project for Moolman Group and the company

foresees a great future for this development.

Another recent venture that Moolman Group

is undertaking is the Game Centre development in

Thohoyandou which is known as one of the stron-

gest retail areas in South Africa. The company web-

site states, “This is because very little decentralisa-

tion of retail facilities occurs, ensuring a strong and

vibrant central business district (CBD).”

The Game Centre is being built up south of

Venda Plaza on one of the last remaining pieces

of vacant land in the area. The development is

about 7,500 square metres.

Moolman Group is currently busy building a

Makro store in Polokwane as well as being in-

volved with three of the latest Makro buildings in

Wonderboom Silver Lake Vaal.

Moolman Group’s other projects include

the Bedworth Centre in Vanderbijlpark also with

Flanagan & Gerard, which was completed in

November 2010, as well as the Lephalale Mall in

Limpopo which will be developed on a 12 hect-

are site in Onverwacht.

Competitive edgeBeing a company that emerged from strong family

ties, Moolman Group works with a philosophy that

highly values integrity and client relations. “As a

family business we promote a family culture,” says

Jannie Moolman. “We administer our own portfolio

and manage all the property ourselves.”

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142 CONSTRUCTION � Moolman Group

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143SEPTEMBER 2011 � The African Business Journal

Within its entrepreneurial spirit Moolman

notes its small business structure that aids in

a fast turnaround for clients. “We are entrepre-

neurs in a smaller structure so decision making

is very quick,” says Moolman. “We don’t have

these big corporate structures.” Moolman also

notes how flexible the company is with clients

and how much it values its strong staff. “We care

about our staff. We look after them the most we

can. We are small players in the industry but we

are flexible and take opportunities as they come

our way,” he says.

Keeping the business as green as possible is

also something that Moolman Group is always striv-

ing towards. The company adheres to all environ-

mental laws and knows the importance of keeping

up with environmental legislation in its business.

It also works in a number of different ways to keep

its carbon footprint low. “We are quite aware of the

challenges and importance of building green and

we try to use natural light while optimizing electrical

specifications.” Moolman notes how important it is

for the company to design buildings that are energy

efficient as possible. “It’s a very relevant topic at

the moment,” he adds.

Its corporate social responsibility is also some-

thing that the company takes seriously and the

team often gets involved with various charity orga-

nizations. “We like to get involved on the ground.

We recently helped with a school that we saw

struggling and for many years we have donated to a

charity for child welfare in Polokwane,” says Mool-

man. The company actively assists and contributes

to its community in various projects like these.

For the future, Moolman Group plans to con-

tinue its investments in quality properties. “We

want to grow and are now in a position for growth

opportunities. We are a well-established business

and geared up for growth.” With its long-term rela-

tionships with clients, the company has created a

name for itself as a reliable, major South African

property developer. “Our relationships with our ten-

ants and the fact that we deliver what we promise

is key,” says Moolman. With integrity and strong

client relations, the team at Moolman are geared

up for a fulfilling future in South African property

development. TAB

www.MOOlMAngrOup.cO.zA

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MOrgADOPlanting the seeds of success

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MOrgADOPlanting the seeds of success

145

cOnsTrucTiOn

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146 CONSTRUCTION � Morgado

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147SEPTEMBER 2011 � The African Business Journal

With its reliable and efficient customer service, Durban-based plant hire specialists Morgado offers more than just a wide range of vehicle and machinery solutions.

As One Of the largest plant hire companies in South Africa, Mor-

gado Plant Hire is able to supply its customers from domestic and

neighbouring markets with a broad and multi-faceted range of

plant vehicles.

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

148 CONSTRUCTION � Morgado

From articulated dump trucks (ADTs), rollers,

tractors and bulldozers, to excavators, mobile

crushers and tippers, the firm has a comprehen-

sive range of heavy-duty trucks, vehicles and

construction-related machines at its disposal.

While the Durban-based plant hire specialist

and civil construction contractor is known for its

extensive variety of machines, it is also recog-

nised for providing excellent customer service.

In the past three and a half decades, Morgado

has grown to become a leading force in KwaZulu-

Natal’s plant hire, civils contracting and logistics

industry, and on its website proclaims: “We pride

ourselves on providing good back-up and supplying

top-class machinery to our customers.”

The plant hire firm began life in 1975 under

its founder Tony Rodrigues as a one man, one

TLB-sized operation.

His son Luis joined his father in running the

business in 1989 and in 2007 his daughter Neli

joined the firm with specific responsibilities for

the administration of the business.

Rodrigues’ son Luis, a mechanical and civil

engineer, says, “When I joined Morgado, we had

35 TLBs and worked throughout the wider Kwa-

Zulu-Natal area.

“We then ventured into wheeled loaders, exca-

vators and dozers. We diversified into all types of

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149SEPTEMBER 2011 � The African Business Journal

construction plant and so the company expanded.

“now our machines are hired throughout South and Southern africa, and we are one of the largest plant hire companies in South africa with more than 220 machines,” he adds. “But we would prefer to be known for the quality of our service and machines rather than for our size.”

Of his father, Tony Rodrigues remarks, “Dad

was a workshop foreman and bonded his house

to buy his first TLB and start the company.

“I used to help him on weekends by repairing

and servicing the plant from our home in Umbilo,

Durban, and the neighbours used to complain

because we would line our machines up along

the pavement.”

The foundations for future successIn 2002, Morgado moved into its current prem-

ises in Glen Anil and has in place a strong foun-

dation throughout the company, which is able to

provide a springboard for future success.

Morgado’s business model consists of five

divisions: civils contracting, plant hire, logistics,

materials handling, and crushing and screening.

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

150 CONSTRUCTION � Morgado

The civils contracting division has grown from

strength to strength in the past 20 years and

today specialises in bulk earthworks, roads and

surfacing projects, as well as a range of other

construction developments.

From excavators to ADTs, and bulldozers to

hydraulic peckers, Morgado operates more than

220 machines. The plant and equipment division

offers customers support from an in-house work-

shop, which employs more than 40 mechanics,

boiler makers and mechanics assistants.

All of Morgado’s plant operators have been

certified to competently operate equipment

and the company ensures that supporting

documentation is readily available.

Morgado owns and operates 11 low beds ca-

pable of transporting up to 60-tonne loads, and

therefore requires a professional and efficient

logistic division, which it has in place. Thanks in

part to its logistic capabilities the company can

today boast of being the preferred transporter to

several agents and OEMs in South Africa, with

cross-border capabilities that include all south-

ern African countries up to Zambia.

Morgado has been a regular contractor to the

Port Authorities in Durban for several years, in-

volved in loading ships with various commodities

from iron ore and coal, to manganese and copper

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151SEPTEMBER 2011 � The African Business Journal

concentrate. The firm’s materials handling divi-

sion ensures this work is carried our efficiently and

successfully with an operation that runs 24 hours a

day, seven days a week, 365 days a year.

The plant employed in this operation includes

20 tonne and larger pay-loaders, as well as special-

ised 20 tonne backactor Straddle Machines that

measure 7.9 metres high.

Finally, the crushing and screening division

looks after Morgado’s three primary jaw crush-

ers, two secondary cone crushers and a tertiary

vertical shaft impact crusher.

Through such equipment, the company is

able to produce crushed stone base and sub-base

materials, aggregates for road surfacing and ready

mix concrete, rip rap, gabion and pitching stone

as well as processing run of mine material for ore

beneficiation.

With such a broad range of large machines

and solutions on offer to its customers, Morgado

is a name that has grown and will continue to

grow with the development of big industry and

the introduction of big construction projects

across the southern tip of Africa. TAB

www.MOrgADO.cO.zA

EQUIPMENT SPARE PARTS AFRICA (PTY) LTD

ESP IS THE LEADING SUPPLIER OF REPLACEMENT PARTS FOR EARTHMOVING MACHINERY, DIESEL ENGINES AND TRUCKS IN SOUTH AFRICA.

XCEPTIONAL QUALITYAll parts supplied by ESP are subject to the strictest quality controls and are covered by the ESP 9-month parts warranty.

AVING MONEYESP’s technology and years of experience are dedicated to a single objective - saving the plant owner money on his machin-ery, truck and engine repairs.

ARTS AVAILABILITYComputer linked warehouses and well trained staff ensure a high level of parts availability and an efficient service to ESP’s customers.

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

VegtechpeOple in glAss HOuses

152

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VegtechpeOple in glAss HOuses

MAnAgeMenT & OperATiOns

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154 MANAGEMENT & OPERATIONS � People in glass houses

In the current climate growing vegetables has never been so fashionable—fortunately Vegtech build the best greenhouses in africa, so everyone can make a statement or, if the need takes them, a cucumber.

prODucing A cOrnucOpiA of vegetables has grown

in popularity over the last two decades. Whether it

be for environmental reasons, a business or simply

in order to show off to the neighbours, people are

increasingly keen to cultivate their crops.

The seed of Vegtech was carefully planted at the

very dawn of these trends, allowing the company to

blossom and flourish, in tandem with the popularity

of greenhouses and home-grown produce.

Vegtech has grown considerably over the last

decade, as companies respond to the various

international food crises and water shortages. It

provides the opportunity to tackle these issues

positively, using the finest materials and most

cutting-edge technology.

No pane, no gainThe company was formed in the late eighties and

originally traded by importing Israeli agricultural tech-

nology through consultants in the northern part of

Africa. Later it began farming operations and quickly

established the need to update existing equipment,

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155SEPTEMBER 2011 � The African Business Journal

while also establishing that other farms needed tech-

nology in order for their farms to perform better.

At this point the company realised they were

on to a winner and settled into building structures

for food production. As well as greenhouses it also

sells all the hardware needed to grow undercover,

offering systems like net houses and tunnels.

The company currently has exciting projects in

Botswana, Abu Dhabi, Zimbabwe and Angola, while

60 per cent of its trade remains in South Africa.

Fertile timesIn South Africa Vegtech can boast 20 years of

experience, during which they have successfully

completed 400 projects. Its vast and versatile

range of technologies enables it to supply ac-

cording to different environments, size and prod-

uct requirements.

The main emphasis for Vegtech always has, and

always will be quality; creating desirable products

which benefit from low maintenance and a profes-

sional finish that will last. Indeed, a great many of

their original greenhouses, built more than 20 years

ago, are still functioning superbly to this day.

Deon Van Rooyen explained that the com-

pany’s refusal to cut corners means that they

will always produce formidable structures. “We

believe in supplying a greenhouse that is solid

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156 MANAGEMENT & OPERATIONS � People in glass houses

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157SEPTEMBER 2011 � The African Business Journal

and fully operational. We have done a lot of fine

tuning in terms of how the components connect

together and also insulate our structures against

the sun, using a revolutionary tape,” he said

“There are small things that no one else does,

for instance, all our nuts and bolts are the same as

those used in the motor manufacturing industry.

You know that in high wind and storm conditions

your green house will remain standing!” he added.

Additionally, the plastic coverings it uses are

from a European manufacturer which incorpo-

rates the best technology in the world, helping to

create exactly the required climate inside.

These advances ensure there is much less

need to control insects and use fertilisers. This

means less chemicals, so the produce tastes bet-

ter. Meanwhile, there are a special range of nets to

put on openings so that customers can maintain a

pest-free greenhouse. Above all, the technology cre-

ates bigger, healthier and more abundant crops.

Big ideasThe company currently employs over 200 sub-

contractors and 35 full-time employees, many of

whom have been applying their craftsmanship to

Vegtech projects since the very beginning.

There is no limit to the size of greenhouse it can

build, but they often use their expertise to determine

the scale of the structure according to climate.

Van Rooyen explains, “When we go to a place

with a very hot climate we prefer to keep the

structure smaller, whereas a colder atmosphere

is more suitable for bigger houses. Climate also

dictates what type of structure we erect. Over

the last 20 years we have established precisely

which design works best in each area.”

Most of Vegtech’s competitors come from

Europe, and although some make similar struc-

tures, this is where the similarity ends. Africa has

a distinct set of meteorological and atmospheric

considerations that are markedly different. When

you put a greenhouse up in Europe it is all about

how to preserve heat, in Africa the central objective

is to get rid of it. This gives Vegtech a unique pool of

knowledge that gives it the edge over rivals.

In the next five years the company will con-

tinue to focus on the lucrative African Market as

well as the Middle East and, eventually, India.

As Vegtech continues to thrive, on its immov-

able bedrock of quality, it is determined to keep

utilising the unrivalled experience and knowl-

edge that has made it one of the indisputable

leaders in a very exclusive field. No wonder con-

fidence, like the vegetables in its greenhouses,

keeps growing. TAB

www.VegTecH.cO.zA

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sTrATegy, knOwleDge, neTwOrks AnD successhow Global Pacific & Partners continues to outperform with unique industry business model and advisory practice

158

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sTrATegy, knOwleDge, neTwOrks AnD successhow Global Pacific & Partners continues to outperform with unique industry business model and advisory practice

MAnAgeMenT & OperATiOns

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

160 MANAGEMENT & OPERATIONS � Global Pacific & Partners

There aren’t many advisory firms in the upstream oil and gas industry that can match Global Pacific & Partners’ stature or its business model: with three decades in the world upstream, having played host to over 5,000 speakers and 30,000 delegates across africa, asia, latin america, Mideast and global gatherings. In fact, there aren’t any with the company’s on-ground and africa-wide experience either.

“I believe that our aim has always been to

deliver the best quality and this is something we

have consistently achieved and for which we are

recognised—in our worldwide events, unique strat-

egy briefings and in our advisory practise,” deputy

chief executive Babette van Gessel reflects.

“Over the years we have built a global an-

nual portfolio of high-level conferences which

are landmark meetings, running now for over two

decades. We have also always sought to be per-

sonally and directly involved, and to be innovative

and ahead of the game and have been pioneers

in several arenas.”

Take their global e-Conference facilities for

online presentation access; since early 2000 this

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161SEPTEMBER 2011 � The African Business Journal

suite of online presentation access has oper-

ated unrivalled and proved very popular. Or the

group’s global daily and weekly oil and gas indus-

try newsletters sent to more than 40,000 recipi-

ents, which cover all regions, key countries and

specialised themes and focuses.

“No-one matches the model for our world-

wide strategy briefings done on Africa, Asia, Latin

America and MidEast plus on the world oil future

in the manner we have conducted them, and we

have hosted over 3,500 clients in these briefings

over the years,” van Gessel says.

“They provide a unique blend of upfront in-

sight and networking pre-event with high-impact

and intensive conferencing following, and are

based on rich content.”

Keen to gain more perspective on quite how

wide-ranging, well-targeted and complimentary

Global Pacific & Partners’ range of services is,

TABJ met with van Gessel to hear about how, in

her own words, the group’s huge communica-

tions strategy operates. It goes without saying

that those who facilitate knowledge-sharing,

networking and information access possess

some of the most vital tools any player in any

industry relies on—but there aren’t many that can

stand alongside their company when it comes to

communicating petroleum, energy and strategy

insight from Africa and beyond.

TABJ: We last spoke in July 2010, and looked

closely at the events, research and advisory

sides of your work today. What might you define

to be key focuses at the moment from an events

perspective, perhaps upcoming events such as

the 21st World Upstream Conference? Please tell

us more about what is coming up and why they

are globally significant meets.

Bg: Yes, we have some globally significant events

still taking place this year: our 21st World Up-

stream will be hosted in Geneva from 20-21

September and is one that looks around the

global industry at large with 37 top-level speak-

ers, so setting it apart as a truly global manage-

ment meeting plus with an in-depth 10th World

Oil Future Strategy Briefing taking place just prior.

Our 16th Asia Oil Week in Singapore which tracks

the oil, gas and LNG game in the region, company

strategies and exploration portfolios, follows short-

ly after on 29-30 September and this is allied with

our 20th Asia Petroleum Strategy Briefing, which

is the longest running briefing on Asia’s explora-

tion industry, and really even worldwide. We have

been active in Asia since the early 1980s, and

Dr Duncan Clarke (Chairman of Global Pacific

& Partners) has had extensive experience and

presence in the region, so this track record has

helped cement our efforts there. Afterwards from

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162 MANAGEMENT & OPERATIONS � Global Pacific & Partners

31 October-4 November in Cape Town we host the

18th Africa Oil Week which is our flagship event,

attracting typically over 800 participants from

around the world, from Monday through Friday. It

includes the well-known 13th Scramble for Africa

Strategy Briefing, plus has 75 speakers at the

Africa Upstream and Africa Independents Forum,

and with an exhibition. It’s the crème de la crème

in and on Africa there each year, and really is an

important occasion for the industry and Africa’s

deal flow, acreage marketing and transactions.

TABJ: In your advisory practice—perhaps also

strategy briefings—what are the pertinent topics

reoccurring today? Within this, how is Global Pa-

cific & Partners working to assist its client base

in tackling these issues?

Bg: On Advisory we only focus on strategy. It’s

been our metier for over three decades. Man-

dates are only accepted where we know we can

deliver accordingly, and then only on client re-

quest. We do not pitch for business. Presently

we are acting for the interests of a newly-listed

AIM exploration player from Africa, with strategy

and advice on assets and growth options, done

for the CEO and Board. We are close to finalisa-

tion of our mandate for the African Development

Bank on oil and gas strategy and investments,

to bring them further into Africa’s upstream and

grow their asset portfolio in greater measure

across the industry, and build linkages and deal

flow with private companies and related develop-

ment finance institutions. New Zealand has re-

tained us to assist in solicitation of key corporate

oil investors to take up exploration acreage there,

and we shall conduct some meetings in early Oc-

tober in Wellington for them on this matter. They

have some of the best fiscal terms, operating

conditions and unexplored frontiers worldwide.

Earlier this year we provided advisory insights for

GE Africa on economic issues and potential in

Sub-Saharan Africa, and likewise for Engen, one

of Africa’s leading downstream players. In the

case of another private company we have been

assisting them to get a grip on the oil/gas pipe-

line markets in Africa and build relationships to

the key state oil players across the Sub-Saharan

business. So our Advisory practice is really a mix

of circumstance, meeting specific client needs,

shaping business networks, while assisting with

understanding of world and African oil and gas

industry markets and issues.

TABJ: As part of your mission, I see you have a

hand in networking too. Let’s look at the clubs and

networks that you partner with, and any of them

that are particularly significant in terms of news

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163SEPTEMBER 2011 � The African Business Journal

agenda and furthering insights/reshaping views

for African upstream-related industries today.

Bg: There can be no doubt the our PetroAfrica-

nus Club, which was started in 2004 and has

attracted over 3,000 attendees at its dinners so

far, held in London and across Africa (Cape Town,

Nairobi, Lagos, Marrakech, Tunis, Johannesburg)

has been of great significance to Africa’s deal

flow and relationships between companies and

governments and national oil companies. By end

of this year we will have hosted 42 dinners, each

with a leading guest speaker. It’s a special forum

that cements many within our networks around

the world, providing intimate business connec-

tions and continuity which has equally been

much appreciated by the Club’s Patron and Cor-

porate Members. Our African Institute of Petro-

leum (initiated 1996 and re-launched 2009) has

made its mark, with over 500 individual mem-

bers, in shaping understanding about the eco-

nomics of the oil game in Africa. Governments

and industry too often narrowly focus on fiscal

“state take” in relation to acreage and invest-

ments but this is only one of the economic as-

pects of corporate portfolio impact. Much wider

and larger direct and indirect economic benefits

flow outside of fiscal revenues, which should be

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Petroleum Agency SA is a government owned organisation designated in terms of the Mineral and Petroleum Resources Development Act. The Agency promotes exploration for onshore and offshore oil and gas resources, regulates exploration and production activities and is the custodian of the national petroleum database. Sustainable and optimal development of South Africa's indigenous oil and gas resources on behalf of our country's people is of utmost importance and this is reaffirmed through our vision of “a viable sustainable and responsible upstream industry in South Africa”.

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Contact us to find out aboutOnshore or offshore exploration opportunities for oil and gas in South Africa

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Phone: +27 21 938 3500email: [email protected]

www.petroleumagencysa.com

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

164 MANAGEMENT & OPERATIONS � Global Pacific & Partners

accounted for in any calculus. Part of the growth

in resource nationalism and the rising tax inter-

est of the state in Africa have arisen as a result

of non-appreciation of these facts. Without full-

scale economic evaluation of this kind, Africa will

be taking the path to less competitive outcomes

in this globally competitive market for exploration

investment. Our clubs and networks have been

fairly instrumental in building bridges between all

parties and stimulating relevant discussions.

TABJ: On a daily, weekly, monthly and yearly ba-

sis, you have all sorts of tools to bring members

together, impart vital news and provide insight on

current affairs related to industry. Perhaps you

can tell us a bit about what it means to facilitate

forward-thinking dialogue both between mem-

bers, yourselves and wider industry, and how

Global Pacific & Partners effectively does that?

Bg: Our tools of direct communication include

around 30 newsletters that provide breaking

oil/gas news daily and weekly. Our Conference

events with quality speakers and agenda help

shape the corporate landscapes and interfaces

with governments. The Strategy Briefings impart

world-class strategic insights and knowledge to

over 600 clients each year focused on world-

wide competitors, economics, strategy, acreage,

industry trends, and risks/threats. We also un-

dertake dedicated road-shows for governments

and licensing agencies worldwide, and have

done so in Africa, Asia, Europe and elsewhere,

while last year we did so for Colombia and Ga-

bon. There is networking built into all of these

activities. We hope that our clients are enriched

by these engagements, and for us it’s a continuing

learning experience: one can never know enough.

TABJ: With both yourself and Duncan Clarke at

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

165SEPTEMBER 2011 � The African Business Journal

the helm, Global Pacific & Partners has certainly

amassed many achievements since its found-

ing. Where will the firm go next? What are your

company-centric plans and goals, from adding

members and targeting other niches of industry to

expanding on what is already a highly diverse and

comprehensive communications structure?

Bg: Our first aim is to survive. Turbulent waters

come and go. Success is a bonus, if it comes.

As we are a small firm, our main interests is to

raise the quality on all our annual platforms, and

in that way seek to grow the delegate flow and

commerciality too of course, as well as sustain

our advisory mandates (which by necessity are

episodic). Beyond oil, we have a long track re-

cord in Africa’s economics and this side of our

knowledge remains active for advisory mandates

too. Actually, Duncan Clarke’s new book (Africa’s

Future: Darkness to Destiny) will be published in

February 2012 by Profile Books (London). It cov-

ers the key drivers on economic growth impacting

the economies from the past and present, into

the future. It is a rethink on Africa, unlike much

of the views you currently hear. But in general we

prefer to “stick to our knitting”. Even so, we may

return next year to one arena on which we under-

took over one decade of significant conferencing:

on Africa’s downstream, which we understand

well. We will soon also reshape our model for the

newsletters, to convert most to commercial ven-

tures, so providing gratis news-flow on both the

world and Africa, but also combined with special-

ised paid services for those that want and need

our highly-focused insights.

TABJ: For companies, noteworthy individuals

and other industry interested parties who want

to know more about your work, what do you

advise? They can of course visit www.petro21.

com, but is there anything else they ought to be

looking out for from you?

Bg: Well, they can ask to be placed on our man-

agement database so as to receive notices on

all our events, and they can receive gratis our

Newsletters, for updates on our Programs as well

as on developments in the industry at large - just

send an email to [email protected]. As our Advi-

sory practice is like a boutique, interested parties

can contact us directly for this also. TAB

TABJ thanks van Gessel for her time and

input during and after the interview

www.peTrO21.cOM

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

Msp DeVelOpMenTBuilding a community

166

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

Msp DeVelOpMenTBuilding a community

MAnAgeMenT & OperATiOns

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

168 MANAGEMENT & OPERATIONS � MSP Development

Society matters are just as important as material procurement for MSP Developments. The Western Cape property developer explains how the art of prioritising does have its rewards.

Msp DeVelOpMenTs is dedicated to providing

home owners with everything they need from the

design of their homes, to their construction, to

their delivery and beyond.

The company designs all of its units along

with the infrastructural elements of each of its

estates, while bringing what MSP Developments

managing director John Coetzee describes as

“affordability to the people”.

“Everything cost is worked out properly,”

notes Coetzee. “There are no massive profits any-

more—you cover your overheads and you ensure

your profits give you a good chunk of the market.

“We manage the whole process to keep the

price of procurement intact and make it affordable

for the new generation of buyers coming through.”

Launched as MSP Developments in May

2002, the firm has experienced tremendous

growth and has brought some of South Africa’s

largest residential projects to the retail market.

The group is split into eight divisions, each

one coving a specific area of the market from

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

169SEPTEMBER 2011 � The African Business Journal

marketing and sales, to customer finance, rent-

als and construction.

But despite its ambitious and competi-

tive nature, as well as its large size, MSP rarely

moves into territories outside its current market

in Western Cape.

“We stay inside our radius as we can manage

that logistically every single day,” says Coetzee.

The acronym in the company’s name stands for

‘multi-spectrum projects’ and represents the broad

range of work the firm carries out across the resi-

dential, commercial and industrial sectors.

The company is heavily branded and as a

result has a strong presence in the mind of locals

in the region, notes Coetzee.

“Everyone is basically aware of MSP Develop-

ments,” he says. “With old established companies

they are able to explain themselves over a number

of years, but with MSP we had to put the name out

into the market and really brand it. MSP is every-

where thanks to the marketing skills of our founder

and managing director Riaan Roos and it is a name

recognised across in South Africa.”

The company employs more than 165 people

and has continued to grow in the past 30 months

despite the sluggish state of the economy.

“We did this by ensuring the same level of sales

momentum,” says Coetzee. “When everyone was

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

170 MANAGEMENT & OPERATIONS � MSP Development

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171SEPTEMBER 2011 � The African Business Journal

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

172 MANAGEMENT & OPERATIONS � MSP Development

heading downwards we were expanding.

“We are working on several developments in-

cluding the large Buh-Rein Estate, which comprises

3,511 residential units, plus commercial units.

“We’re also building 3,000 units at Blue Downs

and at Sitari Fields Golf Estate we’ve purchased

another 192 hectares for another 3,200 units.”

Feeding the affordable housing marketSouth Africa has a backlog in affordable housing

market of more than 500,000 homes and the topic

is one of the most discussed, according to Coetzee.

“If you try to play catch up with this backlog,

you would never get there,” he remarks. “It would

take more than 10 years to get there, and by

that time it’s will have simply continued to move

forward, and therefore it takes a lot of planning,

not only on our part as the developers, but also

for the financial institutions.”

With financial institutions lacking confidence

due to the recession MSP has set up its own

vetting department, thereby ensuring it only for-

wards good customer application onto the banks.

Coetzee says that the effort of the whole

MSP team, along with the firm’s comprehensive

approach to business, has enabled the firm to

achieve such impressive growth and sells on

average close to 80 units per month.

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

173SEPTEMBER 2011 � The African Business Journal

“If look at 2009 when the recession was

heading towards its bottom end we still delivered

more than 400 units,” he notes. “In 2010 this fig-

ure rose to 490 and this year we should hit 600

units for the year.”

The company has a 60-seater auditorium,

which it often for educational and training pur-

poses for staff, investors and potential buyers.

“It’s important for our buyers to understand

what they have signed for, what they’ve bought

and what affordability means,” says Coetzee.

The company provides educational support to

a selection of community leader supplying them

some of its buyers with an education lectures.

“When people buy a house, they may not

always understand the water costs, the taxes and

so on,” remarks Coetzee. “The market changes so

much, but as the buyer gains more educated they

look for better products and value for money.”

Creating a community MSP Developments plans ahead, which is has to

do in order to stay ahead of the demands of the

marketplace.

“We work on at least a five-year plan up-

front—especially when it comes to buying land,”

says Coetzee. “There are many markets to cater

for and every site we design is unique.

“We do not do a copy and paste job on any of

our developments, and once in place the profes-

sional team constructing the development does

not change, because you risk losing focus.

“We look physically at developments to make

sure they don’t prohibit the people from living

there as every square metre is important, and

this includes the security detail.”

At Buh-Rein Estate, MSP has placed 186

cameras across the development, which also

features a security response team and 24/7 se-

curity guards on the facility, providing a high level

of protection for residents.

Like each of the company’s other develop-

ments Bur Rein is, in effect, a suburb. The develop-

ment has everything a community requires, includ-

ing schools, churches, shopping centres, jogging

tracks, sports fields—everything a community needs

to live, play and work inside the development.

“You get good developers and bad develop-

ers and we pride ourselves as a good developer

and on good design,” notes Coetzee.

In 2010, MSP won a South African Planning

Institute (SAPI) award for its Buh-Rein Estate de-

velopment, with so much care and attention paid

to its developments, there can be no doubt that

the company will feature prominently at the next

SAPI awards in 2012. TAB

www.MspD.cO.zA

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

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Page 175: The African Business Journal Sept 2011 - John Pinching

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MAnufAcTuring

Page 176: The African Business Journal Sept 2011 - John Pinching

176 MANUFACTURING � lubritene

Page 177: The African Business Journal Sept 2011 - John Pinching

177SEPTEMBER 2011 � The African Business Journal

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Page 178: The African Business Journal Sept 2011 - John Pinching

178 MANUFACTURING � lubritene

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Page 179: The African Business Journal Sept 2011 - John Pinching

179SEPTEMBER 2011 � The African Business Journal

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Page 180: The African Business Journal Sept 2011 - John Pinching

180 MANUFACTURING � lubritene

THe luBricAnT speciAlisT Lubritene is playing

an important role in the development of many

industries across Africa.

Noted for its brand of high-performance

specialised lubricants, the company prides itself

on being able to provide heavy industry with be-

spoke solutions.

Whether it is for drilling, commercial applica-

tions, or open-pit mining equipment, the firm will

no doubt have a high-performance grease, com-

pound or oil to suit the needs of its customers.

RebornLubritene started life as an importer of high-per-

formance lubricants and in 1996 began to manu-

facture its own high-performance products.

Lubritene Marketing Director Tiaan Oosthui-

zen says, “During this time it became expensive

to import these lubricants, so we decided to

manufacture ourselves. We were manufacturing

some products already, so it was an easy change

to go ahead.

“We then brought out our own brand and

marketed it into the mining industry.”

On the challenge of change, Oosthuizen says

it was a “daunting” experience, but notes that the

company has been performing well ever since.

“Our biggest challenge was in our manu-

facturing capability in that we had to change or

upgrade,” he remarks. “We had one grease plant

from which we made 50 different products, so we

had to change the whole manufacturing set up.

“We installed new grease plants, new blend-

ing plants and specialised plants for open gear

products, cam compounds and similar products.”

The company streamlined its manufacturing

capacity at the turn of the millennium and has

been working at full capacity ever since.

Most of Lubritene’s products are developed

due to problems in the field experienced by its

customers on their applications; but as a special-

Page 181: The African Business Journal Sept 2011 - John Pinching

181SEPTEMBER 2011 � The African Business Journal

ised company Oosthuizen says it is forced to rely

on its customers passing on the message.

“We are not a major international fuel com-

pany who put millions towards their marketing

budgets. All our products are mainly sold on word

of mouth and in-field performance,” he remarks.

Service before salesThe company employs close to 100 employees and

is expecting sales to increase in a steady fashion.

“We’re very service intensive and our sales

team consists of just six people, whereas our

back-up service team consists of 30 people,”

says Oosthuizen. “These employees travel

all over, visiting client sites to check on their

machines and ensure the correct utilization of

our lubricants.

“They check on consumption, work out rec-

ommendations and propose new and better ways

of applying the lubricants to the component that

requires lubrication.”

Oosthuizen says that it is this attention to

detail and service that forms a large part of

Lubritene’s success.

The company’s research teams work to

optimise products to suit the customer’s require-

ments, using science techniques such as vibra-

tion analysis and temperature analysis to ensure

the lubricant is getting into the places it should.

“We make sure it is cost effective,” notes

Oosthuizen. “We have found you can use general

purpose grease or you can use our flagship prod-

uct, and ours will still be more cost effective even

if our product is four times as expensive.”

The company has in place a research and

development laboratory as well as a quality

control laboratory.

Lubritene also offers a range of low-con-

sumption products, including some that are bio

degradable, as it attempts to become more envi-

ronmentally friendly with its products.

Page 182: The African Business Journal Sept 2011 - John Pinching

182 MANUFACTURING � lubritene

“We have sold a few of these products into the mining industry and we have also developed a drilling lubricant for exploration drilling that will not contaminate underground water supplies, which has been approved by the rSa water board,” explains oosthuizen.

“There are certain applications where you do

need to have to environmental considerations,

and most of the time we will have your product to

suit your application,” he adds.

Beyond the continentBased in South Africa, the company’s growth

since 1996 has led it to venture out of the coun-

try, into the wider continent and beyond.

“At the moment we have agents in Ghana,

Zambia, Botswana and Zimbabwe,” notes Oost-

huizen. “We talking to people in Angola, and

there are people in Tanzania using our product.”

The company has two outlets in Australia and

also exports some of its products to China.

“We deal through an agent in China and

ship the product to Hong Kong, so from our

side it is pretty low key,” says Oosthuizen. “We

Page 183: The African Business Journal Sept 2011 - John Pinching

183SEPTEMBER 2011 � The African Business Journal

have been in Australia for about six years with

our outlets in Perth and in Singleton, so we’re

covered on both coasts.”

With a broad range of clients and market, the

company has survived over the past years and

overcame the pressures of recession through an

aggressive sales tactic.

“We made a major push on the sales side

to ensure we survived,” remarks Oosthuizen.

“During our toughest year in 2008 we only grow

by two per cent, but in the past three years we

have grown on average between 15 per cent

and 20 per cent, basically because of this major

sales push.”

Lubritene may not be a major international

oil company, but thanks to the cost effective

nature of its high-performance products and high

service levels, many of its customers view it as a

vital and valuable partner. TAB

www.luBriTene.cO.zA

Page 184: The African Business Journal Sept 2011 - John Pinching

keep iT reel184

Cotton King

Page 185: The African Business Journal Sept 2011 - John Pinching

MAnufAcTuring

Cotton King

Page 186: The African Business Journal Sept 2011 - John Pinching

186 MANUFACTURING � Cotton King

It’s refreshing when a company focuses solely on what it does best. In Cotton King’s case, the name speaks for itself and, naturally, it won’t lose its thread.

Page 187: The African Business Journal Sept 2011 - John Pinching

187SEPTEMBER 2011 � The African Business Journal

Page 188: The African Business Journal Sept 2011 - John Pinching

188 MANUFACTURING � Cotton King

THere Are Very few needs in life that apply to

every single member of the human race. Apart

from the obvious examples like water, bread,

love, DVD player and, red wine, there is another

item that most people simply wouldn’t be able to

function without. Cotton. A world without cotton,

frankly, does not bear thinking about.

Spinning a yarnCotton King has been, in the most literal sense,

part of South Africa’s fabric for many years. Its

mission, from day one, has been to manufacture

and market the best quality cotton products,

appealing to a wide range of customers. Indeed,

these affordable and essential items have also

become available throughout the rest of the Afri-

can continent and across the globe.

Since 1998 the company has experienced

rapid growth, resulting in an expansion of prod-

ucts and, as high streets become more extensive

Page 189: The African Business Journal Sept 2011 - John Pinching

189SEPTEMBER 2011 � The African Business Journal

and the demand for convenient cotton utilities

increases, there has been a steady rise in Cotton

King’s productivity.

It is Cotton King’s policy to deliver cutting

edge training, while also recruiting the most tal-

ented and experienced craftspeople, capable of

reaching the high standards established by the

company over the last decade. Every employee

recognises the responsibility to create desir-

able items for a very demanding and constantly

evolving market. Effectiveness and efficiency

are constantly monitored, enabling the work-

force to manage production and guarantee that

the supply line remains in tune with targets.

This is further improved by incorporating new

technology, ensuring maximum output.

The range of products offered by Cotton King is

supplied to both the local and international markets

and retailers include pharmaceutical companies,

veterinary services, supermarket chain stores,

government departments and private hospitals.

Factory settingsThe initial process at Cotton King’s factories

involves the cleaning and bleaching of high-

quality cotton comber, sourced from reputable

The Lenzing Group benefits from more than seven decades of experience. The unique combination of consistent customer orienta-

tion with leadership in quality and innovation is the foundation for our Leading Fiber Solutions.

With fibers made from the renewable resource wood, Lenzing fully meets the requirements of the market: Consumers increasingly

care about the environment, whilst continuing to enjoy all the convenience they are used to. This development favours the demand

for Lenzing Viscose® and TENCEL®.

Leading Fiber Solutions

www.lenzing.com

Lenzing cellulose fibers set global benchmarks.

Page 190: The African Business Journal Sept 2011 - John Pinching

190 MANUFACTURING � Cotton King

spinning mills nationally and internationally.

‘Rolling’ and ‘balling’ of products during this

process means materials from different mills

merge and become indistinguishable. State-of-the-

art equipment ensures the final cotton product

from this stage is the safest available.

Cotton King remains the exclusive manufac-

turer of cotton buds—both swabs and Q-tips—in

South Africa. These high performance buds are

supplied to the market under leading brand

names and many millions are used every day for

small but vital jobs like removing a troublesome

eyelash, cleaning a wound or restoring ears to

their original condition. Curiously, cotton buds

are one of those few products that mankind

would struggle to do without. Although they are

simple items, the advance in machinery over

the years has made Cotton King’s modern buds

the best they have ever produced.

The company also supplies cosmetic facial

pads to major brands for sale in supermarkets,

pharmacies and convenience stores around the

African continent. In addition, the Cotton King

manufactures indispensible favourites such as

cotton wool rolls, cotton wool balls, beauty coils,

bleached cotton, non-absorbent cotton wool

Denis Gourley Packaging a 100% privately owned enterprise and is a prominent supplier of a wide spectrum of packaging materials to the South African market via a network of loyal distributors and end users.

Denis Gourley Packaging has grown leaps and bounds since inception due to its commitment to superior quality, superior service, outstanding value, innovation and unblemished loyalty.

tel +27 (0)31-569 1344 | fax +27 (0)31-569 1347 | [email protected] | www.denisgourleypackaging.co.za

Page 191: The African Business Journal Sept 2011 - John Pinching

191SEPTEMBER 2011 � The African Business Journal

and pleated cotton wool. If you’re using a cotton

based product for beauty, cleanliness or cosmet-

ics in South Africa it is 99 per cent certain that it

came from the hallowed Cotton King factories.

Already crowned as the undisputed monarch

of cotton, the company is still growing every day

and there is no doubt that its place on the throne

is guaranteed for many years to come. TAB

www.cOTTOnking.cO.zA

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Page 192: The African Business Journal Sept 2011 - John Pinching

BellzOne192

Page 193: The African Business Journal Sept 2011 - John Pinching

Mining

BellzOne Iron men

Page 194: The African Business Journal Sept 2011 - John Pinching

194 MINING � Bellzone

It’s not work for the faint-hearted but Bellzone has iron-ore exploration in its blood and keeps breathing new life into the industry with a potent combination of traditional knowledge, reliable systems and space-age wizardry.

Page 195: The African Business Journal Sept 2011 - John Pinching

195SEPTEMBER 2011 � The African Business Journal

Page 196: The African Business Journal Sept 2011 - John Pinching

196 MINING � Bellzone

THere is An ancient saying in mining and, roughly

translated, it goes something like this. ‘God’s

earth will yield willingly, provided you are willing

to put in the work’. It is this philosophy, along

with modern practices and considerable pa-

tience that means Bellzone will stay at the top

for many years to come. It’s just as well—they’ve

meticulously planned every step of the next de-

cade and beyond.

The drilling fieldsBellzone Mining Plc—an exploration and re-

source development—was founded by Nik Zuks

only three years ago, but already it has some

big ambitions, which it is determined to realise.

The company has already secured iron ore,

nickel and copper permits in the Republic of

Guinea, West Africa and these credentials have

helped to guide the company’s early fortunes,

Page 197: The African Business Journal Sept 2011 - John Pinching

197SEPTEMBER 2011 � The African Business Journal

as they establish the most lucrative areas for

its operations.

At the moment it is involved with the vital first

phase in Forécariah, with initial production due

for the first quarter of 2012. It has jointly funded

the venture, which involves carrying out acceler-

ated investigative activity, 30 and 80 kames from

the Guinea coast. Projections suggest that there

will be a production rate of three to four mtpa of

oxide ore, soaring to a rate of 10 mtpa in 2013.

In addition the company’s promising project

at the Kalia Mine is due to produce 20 million

tonnes of iron-ore per annum in 2014, expanding

to a capacity of a whopping 50 million tons per

annum in 2018. Drilling results and internal esti-

mates indicate that the project has the potential

to host more than 10 billion tonnes of magnetite

and two billion tonnes of oxide. The massive

quantities also make the fledgling company any

extremely good prospect for investment, espe-

cially at these early stages.

Chief Financial Officer Terry Larkan explains

the impressive figures: “We have a 50 per cent

commitment to the current mission at Forécari-

ah, which has a total capital expenditure of $208

million. Our Kalia project will see us committing

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We work with clients to develop practical solutions to improve their supply chain e� ectiveness across our areas of expertise: global procurement, strategic sourcing & planning, project logistics and supply chain management.

Headquartered in Perth, Western Australia and with a newly opened o� ce in the United Kingdom, we utilise consolidation hubs and despatch centres across fi ve continents to deliver product and service solutions competitively, timely and at the lowest total cost.

Our range of industrial products includes but is not limited to:

OTR tyres • Drilling fl uids • MRO • OEM parts • PPE • Consumables

Single contact Customised solutions Global Reach

Page 198: The African Business Journal Sept 2011 - John Pinching

198 MINING � Bellzone

an even greater capital expenditure programme

of $2 billion.”

Another massive investment, which com-

mences now, and runs through to 2018, will

commit in excess of $3 billion to construct a

revolutionary, commercially operated railway and

port in Guinea for the export of bulk commodities

such as iron ore. The facility will transform the

lives of thousands in the area.

ScannersRecently, the company has completed a highly

sophisticated mapping and surface sampling

programme, identifying prospective nickel and

copper projects. An aerial survey is also currently

being conducted to further define areas for a tar-

geted drilling programme. These techniques will

eradicate the time consuming practice of drilling

at random, or on a hunch. By carryout research

thoroughly and reducing risk the yields will also

be significantly higher.

Further afield, Bellzone has acquired the

rights to buy 70 per cent of whale from Compag-

nie Miniere de L’Ouest Africain in South Africa.

It is undertaking geological studies on the tene-

ments which could be iron ore rich.

Page 199: The African Business Journal Sept 2011 - John Pinching

199SEPTEMBER 2011 � The African Business Journal

Page 200: The African Business Journal Sept 2011 - John Pinching

200 MINING � Bellzone

Larkan reflects that although they are a very

young company, an adventurous approach will

pay dividends. “We have not been around long,

but have proved that our strategies for structur-

ing, engagement with community, environmen-

tal considerations and a safe working ethos

have formed the company culture and proved it

has very solid foundations.”

“There is a real sense of pride combined with

huge excitement as we progress towards our tar-

gets. We have worked very hard and the next ten

years will be the most important in the life cycle

of the company,” he added

Patriotic personnelBellzone is proudly Africa centric. The majority of

the workforce—which has ballooned from three to

200 in less than 36 months—and all assets are

based in Africa. As the company grows so will its

presence and the aim is to gain status as one of

the top iron-ore outfits in Africa.

The entire leadership team has extensive

experience of mining all over the continent and

Page 201: The African Business Journal Sept 2011 - John Pinching

201SEPTEMBER 2011 � The African Business Journal

a comprehensive understanding of the unique

challenges, opportunities and advantages in

all conditions within the region. The melting pot

of talent is another example of the company’s

determination to be prepared for every eventual-

ity by using the finest manpower, technology and

knowledge in the industry.

As well as the deals that are already on the

table, the team are constantly on the lookout for

further projects throughout Africa and over the

next few years will provide the foundations for the

next half century.

When billions come into the equation, whether

it is dollars or tonnes, it is surely proof that young

companies can think big too. Naturally, Bellzone

are in it for the long haul—quite literally. TAB

www.BellzOne.cOM.Au

For all your Diamond Drilling needs contact us...

HEAD OFFICED & B Supplies,12 Dwyer Street, BoulderWestern Australia, 6432.

T 08 90932820 | F 08 90932821

Phillip Usher 0407990291 - [email protected] Gamble 0418935852 - [email protected]

PERTH OFFICED & B Supplies, Unit 1 , 23 McDonald CrescentBassendean, Western Australia, 6054.

T 08 93790111 | F 08 93790222

Peter Usher 0407914663 - [email protected]

Page 202: The African Business Journal Sept 2011 - John Pinching

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