www.fortune.com/adsectionsS1

ith a growing middle-class, in addition to high-profile infrastructure developments, social and professional empowerment programs for the disenfranchised, lucrative assets, and an increasing number of small businesses, South Africa is more than able

to compete on an international level. A world leader in mining, South Africa’s mineral reserves are worth

$2.5 trillion. Overall, the country is estimated to have the world’s fifth-largest mining sector in terms of GDP value, with the highest reserves of manganese and platinum group metals (PGMs), and some of the largest reserves of gold, diamonds, chromite ore, and vanadium. A far-reaching National Development Plan (NDP), which aims to create 5 million new jobs by 2020, has identified mineral beneficiation as a priority growth area for job creation.

To fully leverage this wealth and develop the socioeconomic landscape, the government is focusing on the shortfalls. In a recent press statement, Deputy President Cyril Ramaphosa, who is also the incumbent facilitator for the Southern African Development Community (SADC), welcomed Business Leadership South Africa’s (BLSA) commit-ment to help the government address difficulties arising from the coun-try’s constrained supply of electricity. BLSA expressed its willingness to work with the government to restore public and business confidence in Eskom, as the national electricity utility, and in the economy at large, which has stagnated in recent years. This is despite an 80% increase in foreign direct investment in 2013 and excellent investment attrac-

tiveness ratings from the major credit agencies. The introduction in the last 10 years of Black Economic Empower-

ment initiatives, which are challenging equality head on, and seeing an explosion in women’s rights, are now yielding exciting results. As Liepollo Pheko, president of the decade-old Businesswomen’s Associa-tion of South Africa (BWA), explains: “Women in Africa are not less empowered than in other parts of the world. We have some exceptional women. The BWA objective is to give an evidence base of corporate citizenship of women in this country. Since we started surveying both JSA-listed and non-listed companies and initiatives, and measuring social economics, we have found that we are way ahead of many other countries in the world. The way women are portrayed in the media, in our literature—even the phrases that we use—create stereotypes.

“Even though a lot of women on the African continent do not work in the formal economy, the informal/parallel economy is the biggest contributor to GDP growth. Cross-border traders across the SADC re-gion contribute about R.17 billion to the economy each year. There are women running shops, selling fruit, vegetables, and clothes, for exam-ple, who do not want to enter the corporate world, but who do want to start up a business. In general, they are more reliable in recapitalizing and paying back loans. The institutional framework therefore needs to meet them more than halfway.”

Boosting BusinessAs with many emerging economies, it is the investment holding companies that provide the solution to wealth. Their long-term vision

SOUTH AFRICAA New Age of Sustainable GrowthNow in its third decade of freedom and democracy, South Africa has become a force to be reckoned with on the global stage.

www.globalbusiness.uk.com

SPECIAL ADVERTISING SECTION

Phuti MahanyeleCEOShanduka Group

Sikhumbuzo Eric KholwaneMEC, Department of Finance, Economic Development, and Tourism of Mpumalanga

WNgoako RamatlhodiMinister of Mineral Resources

makes them ideal providers of capital for the infrastructure projects that literally build up a country—power, roads, water, health care, and education—and set it on the road to prosperity. In South Africa, the Shanduka Group is one of the big names in this area.

Founded in 2001 as a black-owned investment holding com-pany, its diverse portfolio is made up primarily of resource companies and food and beverage companies, with a presence in the financial services, energy, telecom, property, and industrial sectors. As well as South Africa, its reach includes Mozambique, Mauritius, Ghana, and Nigeria, and as CEO Phuti Mahanyele asserts, it actively seeks partners with a history of delivering profitable earnings and capable management teams that embrace transformation. Unlike other holding companies, Shanduka’s business focus is not only about creat-ing shareholder value but also about making an impact on communities and society.

“Educational impact is still across racial lines and must change,” Mahanyele says. “We have therefore implemented an Adopt a School Program, for example, where schools throughout the country are sup-ported via infrastructure development—building classrooms, science laboratories, etc.—where in-house engineers, former schoolteachers, and others come up with special school programs, and then partner organizations are brought in to implement them by adopting the school and offering financial support.”

The visionary CEO believes in investing in oneself. Mahanyele left a comfortable job with a good salary because she was not growing and was not content in the job she had. She filled the company require-ments for a black person in the company and that role, but soon real-ized she needed to do more. She applied for an internship at Standard Bank in New York—“the greatest opportunity of my life”—and worked there for seven years before moving back to her home country, where

she noticed people were beginning to do things for themselves.

“I left a job that no longer served me, and shortly after received a call from Shanduka. Now we help create and support new entrepre-neurs through our Black Umbrella scheme,” she says proudly.

“The highly successful scheme offers a three-year mentorship for committed entrepreneurs, who are asked to submit periodic financial statements in exchange for access to Shanduka’s tools and knowledge, a new thing for most of them.”

Championing Mining BeneficiationAlthough mining accounts for a third of the country’s GDP, the sector is in need of more investment, with a particular focus on commodities and targeted areas. As Minister of Mineral Resources, Ngoako Ramatl-hodi explains: “We are open to sit down and speak to any legitimate party which is looking to create jobs and also focus on beneficiation to build local communities. Greater beneficiation requires collabora-

www.fortune.com/adsections S2

SPECIAL ADVERTISING SECTION

“We help create and support new entrepreneurs through our Black Umbrella scheme.”

Phuti Mahanyele, CEO, Shanduka Group

18 Acacia Road, Chislehurston SandtonTel: +27 11 305 8900 | mmaboya@shanduka.co.za

www.shanduka.co.za

Investment partner of choice

Shanduka Group is an investment holding company seeking to pursue expansion into Africa, particularly in the energy, infrastructure and property sectors. Shanduka also facilitates access to financing, markets and advice for emerging entrepreneurs through its Shanduka Black Umbrellas initiative.

11878

nedbank.co.za

Nedbank Limited Reg No 1951/000009/06. Authorised financial services and registered credit provider(NCRCP16).

BANKING BEYOND BANKING HAPPEN

MAKING

SOCIALLY RESPONSIBLE BANK OF THE YEAR

This year Nedbank received both the Socially Responsible and Most Innovative Bank of the Year Awards at the African Banker Awards.

SPECIAL ADVERTISING SECTION

www.fortune.com/adsectionsS3

tion from all stakeholders in terms of, among other things, creating an enabling environment throughout the minerals and value chain.”

Siyanda Resources (Pty) Ltd, a resources investment company, was formed in 2004 by black mining engineers and other black profes-sionals and is focused on the acquisition and management of acquired assets for optimal performance. Executive chairman Lindani Mthwa gives an overview of his company and its vision: “South Africa has a well-capitalized financial system, a relatively advanced infrastructure, and is leading development across Africa. Other countries doing well are Mozambique, Angola, and Botswana, and there is still room for South African companies to open in these markets, as despite their presence there, they are not developed enough.

“Siyanda trades with Angola, the DRC, and Botswana—to which ferrosilicon is supplied by DMS. In terms of diamond production, most of the gems come from Angola, Botswana, and Namibia, but Siyanda’s partnership with De Beers means we are the sole provider for the company in the rest of Africa. The infrastructure may not be great, but the leaders of those countries are starting to understand the value of creating infrastructure for the transportation of products.

“Siyanda transports most of its products by road, although for exports to Australia it uses ports. South Africa’s port infrastructure is highly developed and allows for fast and effective transportation of products to importing countries. Power cuts still exist and this is a result of quick growth, as South Africa got ahead of itself.”

With this now being addressed, Siyanda is expanding. “We have ore in South Africa,” Mthwa says. “We work in partnership with the government and the NDP because beneficiation is a key element of this process. We have closed a deal with a Texan firm, which will put up a ferrochrome smelter here. Power is needed for this, and electric-ity must be abundant for this to happen. This will create jobs locally. We have good experience in exporting ores into Asia, specifically China and Japan, and now the big stainless-steel producers must be engaged with. In early 2014, Siyanda traveled to Asia and Turkey to attract beneficiators, those who use stainless steel, as South Africa does not

have that expertise.“Siyanda has also gone to South Korea and knows who the players

in the industry are and who to turn to. We have attracted Asian and American companies to come and work with us, because we should be smart enough to know what we are good at and what we are not, and to build partnerships with those that can help us. This is why we are partnering with Texas now.”

More than 80% of South Africa’s coal can be found in Mpu-malanga, a province that is also rich in platinum, chromite, zinc, cobalt, copper, iron, and manganese, and home to the awe-inspiring, 20,000-square-kilometer nature zone, Kruger National Park.

With such major assets to its credit, the province is alive with investment potential, as Sikhumbuzo Eric Kholwane, MEC of the Mpu-malanga Department of Finance, Economic Development, and Tourism, acknowledges: “Using the NDP as a base, we have developed our own provincial growth and development plan, where we seek to reindustrial-ize and modernize the province.”

At the Mpumalanga Economic Growth Agency (MEGA), acting CEO Thulani Nobela explains the two major focuses for South Africa’s econ-

omy-driving province—which borders with Swaziland, Mozambique (and so the Maputo Port), and Zimbabwe—right now: “We are by nature an agricultural province, so there is huge opportunity in agro-processing in the province. The DTI has identified the Nkomazi municipality as one of the areas to develop a special economic

zone; this is where we hope to build agro-processing industries and hubs. MEGA is also driving the Mpumalanga International Fresh Pro-duce Market in Nelspruit. This seeks to collect agricultural produce from different producers, exporting some and selling the rest in local markets. Building will soon begin.”

Let There Be GrowthWith its focus on bridging the gap between African and global markets, Makwande Energy Trading (Pty) Ltd. is a powerful force in providing creative solutions for clients wanting crude oil and petroleum products at a global level. Formed in 2006 by a team of black women through South Africa’s Black Economic Empowerment program, Makwande Energy Trading has been labeled a Level-1 BBBEE supplier and enjoys a formidable reputation for its dynamic expertise.

“Our strong knowledge of the energy market, a large regional and international network, and a highly experienced management team have allowed us to become specialized in petroleum trading, opera-

Mike BrownChief ExecutiveNedbank Group Ltd.

Thulani NobelaActing CEOMEGA

Lindani MthwaExecutive ChairmanSiyanda Resources

Siyanda Resources mining operations www.siyandaresources.co.za

“Siyanda has closed a deal with a Texan firm to build a ferrochrome smelter here.”

Lindani Mthwa, Executive Chairman, Siyanda

SPECIAL ADVERTISING SECTION

www.fortune.com/adsections S4

tions, and risk management,” says CEO Nona Chili, an award-winning former commodities banking executive who boasts 17 years’ experience in the oil sector, including a three-year stint at Total South Africa. “We are now looking for opportunities with oil and gas companies that can add value to our current activities and assist with skills transfer to the broader community.”

Makwande Energy Trading, a Johannesburg-based firm that takes its name from a Nguni word meaning “let there be growth,” is com-mitted to service excellence, growth, innovation and strategic partnerships. Makwande Supply and Distribution (Pty) Ltd is a logistics company within Makwande Group, speciallizing in the transportation of fuel by road tankers. It was established in February 2009. “With a serious and committed company on board, we could embark on feasibility studies for the storage side, as well as accomplishing mutually beneficial long-term value for the firm,” Chili says.

In the meantime, Cas Coovadia, managing director of the Banking Association South Africa, is encouraging lending institutions to provide access to finance through various funds, and driving policy change, which is critical for inclusive growth. The Nedbank Group Ltd is one of South Africa’s four largest banking groups by assets and deposits, with Nedbank its principal banking subsidiary. It is in the Johannesburg Stock Exchange top 40, having had ordinary shares listed there since 1969, and has been on the Namibian Stock Exchange since 2007. Market capitalization was R.107 billion ($8.8 billion) on December 31, 2013, with Old Mutual plc its majority shareholder, owning 52%.

“South Africa’s financial sector, from a geographic, physical, and financial infrastructural—stock exchanges, debt capital markets, access to lawyers and accountants—point of view, is highly advanced,” says

Mike Brown, Nedbank Group Ltd’s chief executive. “South Africa is a curious mix of a developed and emerging market, but its financial services sector is in most ways a developed sector.”

Brown explains Nedbank’s expansion strategies: “Nedbank oper-ates in Swaziland, Lesotho, Namibia, Zimbabwe, and Malawi, and in 2014 bought an initial 36% stake in Banco Unico of Mozambique. We plan to own between 50% and 70% of that business within a few years. We are also looking to add another three to four countries to that

footprint over the next five years in the region. The partnership approach in central and western Africa is the second strategy element. In Africa, lo-cal knowledge is extremely important, and while we have the competitive advantage in southern and eastern Africa, we don’t naturally have it in central and western Africa.

“We have been involved with ETI and Ecobank for about six years now, and around 65 of our corporate customers use this alliance. When ETI, had a problem with Nigeria’s Oceanic Bank, Nedbank helped them finance this transaction and at the same time negotiated rights to purchase up to 20% of ETI which were recently exercised.”

Siyanda Resources Nedbank Building - 81 Main StreetMarshalltown 2107, Johannesburg, South Africa

Tel: +27 11 832 2543www.siyandaresources.co.za

100% South African company optimizing assets for a profitable future

An investment company working with some of the biggest names in mining, we focus on financing long-term green and brownfield projects to bring some of na-ture’s most precious metals, minerals and energy com-ponents to the fore. MEGA 2 McAdam Street, Nelspruit

Tel: +27 137527286thulani.nobela@mega.gov.zawww.mega.gov.za

Handsome rewards from expansive growth

Makwande Energy Trading (Pty) LtdSandton, South Africa, Gauteng, South Africa Tel: +2711 322 4444 | nchili@makwande.com

www.makwande.com

Service Excellence, Growth and Innovation

“We are looking to add another three or four countries to our footprint.”

Mike Brown, Chief Executive, Nedbank Group Ltd.

•In a previous Special Advertising Section, we incorrectly referred to Mongolia as a former-USSR republic and would like to apolo-gize unreservedly for this oversight.

www.fortune.com/adsectionsS5

Fully enclaved within South Africa, and hugely mountainous—at 1,400 meters (4,600 feet), its lowest point is the highest lowest altitude of any country in the world—Lesotho is exceptional. Along with Swaziland and Morocco, it is one of the few African states to have a constitutional

monarchy and the only African country with a ski resort. While these facts alone might tempt a curious traveler to pay a

visit and enjoy the wide-open spaces, UK investors can rest assured that there is a wealth of diverse openings to tempt them, as Felleng Mamakeka Makeka, High Commissioner of Lesotho in London, assures: “Lesotho has a healthy pipeline of potential investors in diamond mining. This seems to be the sector that most appeals to the UK, and in active discussions with [David Cameron’s] govern-ment regarding cooperation, we realized that the next best way for Lesotho to go is agriculture. Given the country’s historical and traditional background, and the fact that many British people al-ready know about Lesotho, we want to be able to create sustainable tourist activity here.”

Following the flight of former prime minister Motsoahae Thomas Thabane to South Africa after an attempted coup last year, a coali-tion government headed by Pakalitha Mosisili was formed in March 2015. When Global Business met Thabane last summer, he was keen to invite the UK to invest in the former British protectorate now it has democratized its institutions.

As Thabane explained: “License applications will be carried out

through a transparent and verifiable process, and the security of their investments will be guaranteed in terms of the actual money that goes into the bank and compliance to the agreement.”

With plans being drawn up to electrify the country through hydropower, which will naturally lead to industrialization, Lesotho is certainly ripe for investment. The UK is already involved in the Lesotho Highlands Water Project, a bi-national project drawn up between the Lesotho and South African governments in 1986.

As Refiloe Tlali, chief executive of the Lesotho Highlands Devel-opment Authority, explains: “South Africa wants water, and Lesotho wants hydropower, as well as other ancillary developments around that. The project is very important for Lesotho for economic reasons, in that the royalties we receive can be used for development. It also gives us the opportunity to contribute to preserving the environ-ment.”

Moeketsi Majoro, former minister of development planning, acknowledged that an integrated set of individual agencies and action would accumulate growth: “We will take advantage of large investments in water transfer—some $4.5 billion, by reinvesting $1 billion in hydroenergy, and $500 million in mining,” he says. “A lot of money is going to be flushed into the economy by leveraging it back into other sectors.”

Former minister of tourism Mamahele Radebe said: “Tourism would undoubtedly create jobs for our people; however, we need a proper tourism infrastructure in Lesotho. We need electricity at our tourist sites; we need roads, water, and we need five-star hotels.”

Mpaiphele D. Maqutu, chief executive of the Lesotho Tourism Development Corporation, a marketing agency for the Ministry of Tourism, Environment, and Culture, explains LTDC’s strategy: “The regional markets comprise just over 90% of annual visitors to Leso-tho, so we focus on striking synergies with the South African Tour-ism Authority. If entire South African towns can mushroom around the Lesotho tourism product, that speaks volumes for Lesotho. After the hustle and bustle of city life, when they want to escape from the concrete jungle they can come to Lesotho and unwind.

“The demand is there for local people and for international visi-tors: setting up a hotel would certainly give investors a good return on investment. Internationally, the German market is our largest, followed by Netherlands, the UK, and, more recently, the U.S. and China. We are trying to attract investment in greenfield projects as selected development areas for tourism, particularly in Semonkong

LESOTHOThe Mountain KingdomLesotho sits on top of the world in both its geography and topography, and it is looking ahead to an exciting future.

SPECIAL ADVERTISING SECTION

Tel: +266 2231 2427 | www.visitlesotho.travel

EXPLORE THE KINGDOM IN THE SKY

Lesotho Stone EnterprisesTel: +266 2232 7485 / 5888 8889 | lesothosandstone@gmail.com

www.lesothostone.co.za | www.lesothosmartsandstone.co.za

Leaders in Sandstone

www.fortune.com/adsections S6

SPECIAL ADVERTISING SECTION

and Sani Top in the Mokhotlong area.”The 9-kilometer (5.6-mile) Sani Pass,

which connects Lesotho to South Africa’s KwaZulu-Natal province through the Northern Lesotho Mountains, has been named as one of the 15 epic roads to drive before you die by Hostelworld, due to its steep inclines.

“There is a lot of opportunity for invest-ment in tourism in Lesotho,” Maqutu says. “People stay in the Free State and then drive into Lesotho to enjoy the splendor of our

wilderness, high altitude, and breathtaking landscapes. Lesotho’s relationship with South Africa is like that of a gold ring encasing a diamond.

After people have done the Kruger National Park, seen the Big Five, done the beach, and gone to Durban and Cape Town, they can come to Lesotho to relax and unwind. We also appeal to people who love endurance sports, motorbikes, quad bikes, and high-altitude running. Lesotho is a diamond yet to be discovered. Everybody should come and visit this magnificent, magical mountain kingdom; one of the three remaining kingdoms in Africa.”

Mining in Lesotho is believed to have started as early as 1957 with the discovery of kimberlite diamond pipes in the country, and now the Ministry of Mining is concentrating on beneficiation. Their spokesperson said: “Beneficiation, particularly in diamonds, will cre-ate jobs so that later on we can begin jewelry production.”

Technology and know-how, as well as beneficiation, can add value to Lesotho’s mining sector. Lesotho Stone Enterprises is a Lesotho-based company primarily engaged in the quarrying and production of sandstone products. Set up in 2004, it is one of the biggest sandstone manufacturers in Africa, exporting 80% of the mineral mostly to South Africa.

Director David Zhai says: “Our raw product, natural sandstone, comes from Lesotho and as a company we benefit the local com-munity in Lesotho. We employ over 200 local staff and offer them a good salary to make sandstone products for building houses. The

price of sandstone was very high before we set up our company; people were not using much machinery to cut it, so it was very expensive. Since we have been in operation, however, the price of sandstone has halved. Before it was only used on government and municipal buildings; now normal houses are being built from sandstone. Lesotho Stone now supplies the Reconstruction and De-velopment Program with stone for the houses it builds for the South African government.”

The Lesotho Communications Authority and its chief executive Monehela Posholi also understand that the relationship between the country and its larger, powerful neighbor extends to the utilization of Lesotho’s access to the continental Internet cable system, which will help the country become a bigger player in the ICT sector.

As he explains, “We see a lot of opportunities for Lesotho to step into niche areas. For instance, we would like to make Lesotho an ICT hub, and that is quite possible with the projects that we have in the pipeline, which will allow Lesotho to be an active player in the ICT sector.”•

Universal access to affordable and reliable energy is a critical part of a country’s attraction for potential investors, as is the need to know that regulators are working transparently and independently of government influence. As such, Professor Ntoi Paul Rapapa, CEO of the Lesotho Electricity and Water Authority (LEWA) is sending out a message of assurance to investors to harness the FDI needed for important energy projects, including solar and wind power.

“For foreign investment in power generation—which we highly encourage—if there can be an agreement between our national utility and any independent power producer (IPP) to supply power, our utility will be able to recover the costs as long as it procures competitively,” he says. “Reasonable returns are provided for and there is also scope to create specific generation projects entirely for export.”

Lighting the Way Ahead

Lesotho Electricity and Water Authority7th Floor, Moposo House, Kingsway RoadMaseru 100, Lesotho | Tel: +266 2231 2479secretary@lewa.org.ls | www.lewa.org.ls

Hydroelectric power generation: A shining example of bilateral cooperation www.lhwp.org.ls

Mpaiphele D. MaqutuCEO Lesotho Tourism Development Corporation

Developing a reliable communications infrastructure that is capable of delivering a variety of services has remained a priority of the government of Lesotho. Since its establishment in 2000, Lesotho Communications Authority, in collaboration with key stakeholders, has worked tirelessly to ensure that Lesotho builds a reputable com-munications infrastructure. Lesotho is now connected to the world’s communication systems through a variety of international gateways, including the high-capacity East African Submarine System (EASSy) that is also linked to the West Africa Cable System (WACS). Today’s business processes are heavily dependent on robust and super-fast communications infrastructure. Lesotho offers business-friendly communication servi-ces at competitive terms. Lesotho and its communications sector offer many business opportunities. Talk to us to explore this wealth of opportunities.

Lesotho Communications Authority 6th Floor, Moposo House, Kingsway Road, PO Box 15896, Maseru 100, Lesotho Tel. +266 2222 4300 / 5222 1300registrar@lca.org.ls | www.lca.org.ls

Connecting to the World