samag - issue 17

PEOPLE CULTURE TRAVEL PROPERTY BUSINESS WINE SPORT ENTERTAINMENT

Appletiser Over the last decade Appletiser’s revenue has tripled and profits quadrupled

Copperbelt Energy Corporation The sole distributor of electricity to the major mines on Zambia’s Copperbelt

Rovos RailThe most luxurious train in the world

JHIDipula and Mergence Africa property funds sign up JHI

accessibility • experience • excellence

South Africa’s all round venue of choice

Unlimited possibilities. Whatever you need, we’ll cover it.

Johannesburg, South Africa • +27 11 794 5800 (t) • +27 11 794 5808 (f) • [email protected] • www.coca-coladome.co.za

follow us on: (www.facebook.com/thecocacoladome) (www.twitter.com/CocaCola_dome)

3www.southafricamag.com

OUR TIME HAS COME

Excited for the Rugby World Cup to kick-

off in New Zealand next month? Looking

forward to all the drama and excitement

only major international fi xtures can

bring? To help whet your appetite for

September’s Rugby World Cup, South

Africa Magazine brings you a guide to the

Springboks’ chances. Can they do what

no team has yet managed and retain their

World Cup crown? Find out on page 12.

This month, we also look at Perseus

Mining’s lead project, Central Ashanti

Gold Project (CAGP), formerly known as

Ayanfuri, in Ghana. The SAG mill recently

commenced processing ore and fi rst gold

production is expected within a week. You

can learn more about that on page 100.

Staying with business, we visit Appletiser,

a real South Africa success story, which

has tripled revenues and quadrupled

profi ts over the last decade - a highly

palatable return.

Turn to page 72

for that one.

We have lots

more inside. I

hope you enjoy

reading the

magazine.

Ian Armitage

Editor

EDITORIAL Editor – Ian ArmitageEditorial assistant – Inger SmithSub editors – Jahn Vannisselroy Janine Kelso Tom Sturrock Writers – Colin ChineryJane BordenaveJohn o’Hanlon

BUSINESSAdvertising Sales Manager – Andy Ellis Research manager – Chris BolderstoneResearchers – Jon JaffreyElle WatsonDave Hodgsonnicholas DaviesStuart ShirraSales – Andy WilliamsSales administrators – Abby nightingaleKatherine Ellis

ACCOUNTSFinancial controller - nick Crampton

PRODUCTION & DESIGNMagazine design – optic JuiceProduction manager - Jon Cooke Images: GettyNews: nZpA, AAp, SApA

DIGITAL & ITHead of digital marketing & development – Syed Ahmad

TNT PUBLISHING CEO - Kevin Ellis Chairman - Ken Hurst Publisher - TnT publishing Ltd

South Africa Magazine, The royal, Bank plain, norwich, norfolk, UK. nr2 4SF

TnT publishing Limited, 10 Greycoat place, London, SW1p 1SB tntmagazine.com

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

SUBSCRIPTIONS Call: 00441603 [email protected]

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110110110110110110 4444444444444 www.southafricamag.com

pEopLE CULTUrE TrAVEL propErTy BUSInESS WInE SporT EnTErTAInMEnT

appletiser

Over the last decade

Appletiser’s revenue has tripled

and profits quadrupled

Copperbelt energy Corporation

The sole distributor of

electricity to the major mines

on Zambia’s CopperbeltRovos Rail

The most luxurious train

in the world

JHiDipula and Mergence Africa

property funds sign up JHI

ISSUE 17 r40.00

Copperbelt energy Corporation JHiDipula and Mergence Africa

property funds sign up JHI

R O a d t O n e W Z e a l a n d :

sOuTH aFRiCa

o U r T I M E H A S C o M E

06 NEWSall the latest news from

south africa

12 SPORT Can the Boks win the

Rugby World Cup? With the excitement building, south africa Magazine takes a look at the springboks’ World Cup chances. Th e defending champions will be strong contenders for sure but can they bring home the trophy?

18 SUNDAYS RIVER CITRUS COMPANY

26 MEDITERRANEANTEXTILE MILLS

32 ROTOLABEL

38 ROVOS RAIL

44 RENAULT SOUTH AFRICA

50 DUBE TRADEPORT

56 FIMA

62 GOBA (PTY) LTD

68 THE BOARDWALK

72 APPLETISER

78 ELSO HOLDINGS

82 JHI

REG

ULA

RS

FEATURES


Contents

88 G4S NIGERIA

92 COPPERBELT ENERGY CORPORATION

96 DEPT OF WATER AFFAIRS

100 PERSEUS MINING

106 SWIFT MICRO LABORATORIES

110 VINEYARD HOTEL & SPA

114 SA CANOPY

118 NATIONAL AIRPORTS CORPORATION LTD

OF ZAMBIA

122 LETABA ESTATES

126 MERIDIAN WINE MERCHANTS

6 www.southafricamag.com

Lifestyle

A national municipal workers strike begun August 15 with union officials insisting that a strike was the only way to pressurise employers into offering better salary increases.

“We have learnt that Salga [SA Local Government Association] only responds once they are pressurised,” said SA Municipal Workers’ Union (Samwu) spokesman Tahir Sema.

“Workers started downing tools from this morning.”

Samwu workers were officially demanding an 18 percent pay hike, but Sema said that they would not settle for less than 10 percent.

Salga spokeswoman Milisa Kentane said their offer stood at 6.08 percent.

“Our doors remain open [for talks],” she explained. “But 18 percent is just not an option. Our municipalities will be unable to carry that.”

A Salga advert, which appeared in newspapers on August 14, stated that the

Municipal workers strike starts

unions and employer had reached a multi-year salary agreement in 2009.

According to that deal, workers got a 13 percent increase in 2009, 8.48 percent increase in 2010 and would get 6.08 percent in the current year.

Parties would be able to re-open negotiations if inflation went either below five percent or above 10 percent.

“In this instance, the parties agree that the CPI [Consumer Price Index] stands at 4.08 percent. Based on this, the unions requested that negotiations be re-opened,” stated Kentane in the advert.

Sema said the union “remained committed to meet” with Salga for more talks.

“We rejected the paltry offer of six percent made to workers by the employer body, Salga. We are demanding 18 percent or R2000, whichever is greater,” said Sema.

Various “march activities” would take place countrywide as Samwu expected 145,000 workers to take part in the strike.

All the latest news from South Africa

Springbok captain John Smit suffered what looked like a nasty arm injury during the Springboks’ 14-9 Tri-Nations loss to Australia on August 13.

It is feared the injury could potentially end the most experienced captain in world rugby’s World Cup dream.

However, a South African Rugby Union (Saru) spokesperson confirmed that he has not been ruled out of the 2011 Rugby World Cup.

While Smit is in a fair amount of discomfort following the injury, the spokesman said there is no doubt that he will be part of the touring party that leaves for New Zealand on September 1.

A final assessment will be made on August 15.

sMit injury woe


Sport

Manufacturing up in june

stats sa: Mining production

down in june

Manufacturing production in South Africa rose 0.9 percent year-on-year in June after a revised 1.0 percent growth in May, Statistics South Africa (StatsSA) data shows.

Manufacturing rose 0.7 percent in the second quarter of 2011 compared to the same period in 2010.

According to the data, the increase was largely based on a 3.7 percent jump in production in basic iron and steel, non-ferrous metal products, metal products and machinery.

There was also an increase of 2.3 percent in motor vehicles, parts and accessories and other transport equipment.

However, petroleum, chemical products, rubber and plastic products reported a 1.9 percent fall in manufacturing.

The food and beverage side of the sector declined 2.6 percent.

StatsSA says six of the 10 manufacturing divisions reported positive growth rates over the period.

Mining production for June 2011 fell 0.7 percent year-on-year, according to data released by Statistics South Africa (StatsSA).

Seasonally adjusted mining production in the second quarter of 2011 dropped 1.1 percent,

Business

Business

compared to the first quarter of 2011.

The main contributor the drop was a 2.7 percent decline in the production of platinum group metals, while iron ore production rose by 1.3 percent.

According to the data, mining production actually

increased seven percent in the second quarter of 2011.

Seasonally adjusted sales of minerals decreased R2 billion for the three months ended May 2011, compared with the three months ended February 2011, StatsSA said.


Sport

South Africa’s old guard failed to meet expectations as they were beaten 14-9 by Australia in a tense Castle Tri-Nations encounter in Durban on August 13.

The world champions, who had selected their strongest available team for almost two years, started out promisingly, but failed to really kick on and eventually slumped to a third loss in five matches against the Wallabies at Kings Park.

Australian centre Pat McCabe scored the only try of the evening and James O’Connor kicked three penalties as the visitors scored all their points in the second half.

Springbok pivot Butch James landed six points for the home side with the other three coming via a long range Steyn penalty.

Springbok coach Peter de Villiers said his team succeeded in starting the Test match strongly but did not capitalise on scoring opportunities.

springBoks’ old guard fails to Meet chaMpion

expectations

“We wanted a good start, which we got but then we never make the most of our first half performance,” said De Villiers.

“If we took one or two of our chances, it would have put us in a good position.”

The Springbok mentor, however, felt there were many good things to come out of a game he described as being lost “on the scoreboard only”.

“There are many positives to take out of this. We controlled the game

in the first half when we looked very, very good. We just have to build from there,” he said.

“I think we created the chances for ourselves, we just didn’t take it.

“That in itself is good and bad. Good that we could control the game like that considering the some of the guys hadn’t played any rugby for so long.

“But then on the other side, you expect the guys to convert opportunities into points which we didn’t do.”

Business: Eskom increased its revenue by 29 percent for its financial year ending March 2011, the power utility has revealed. The increase was driven primarily through tariff hikes it imposed a year earlier. Group revenue was R91.4 billion, up from R71.1 billion. “Revenue growth was driven primarily by the 24.8 percent tariff increase granted by Nersa [National Energy Regulator of SA] effective from 1 April 2010,” according to a booklet on the results released in Johannesburg.

Business: Lonrho’s seafood division, Oceanfresh, is to supply hake fillets to Walmart stores in the US from October. In June, Lonrho Agriculture acquired a 51 percent stake in Oceanfresh Seafood (Pty) Ltd, with plans to “expand the company operations into new markets” including the US.

LifestyLe: Child poverty is high in South Africa, a United Nations Children’s Fund study has revealed. The study on the impact of the global economic recession had on children indicated that child poverty remained high at 65.5 percent compared to 52 percent of the country.

PoLitics: Anglo American’s executive director in South Africa, Godfrey Gomwe, believes nationalisation is not government policy. “We believe that the South African government believes in free enterprise... We believe nationalisation is not the policy of the government of South Africa,” he told media gathered at Anglo American’s local procurement and enterprise development fair in Johannesburg. “We believe they will make the right decisions around the debate that’s currently raging.”

newsinBriefspringBoks’ old guard fails to Meet chaMpion

expectations


dewani can Be extradited, says judge

Shrien Dewani can be extradited to South Africa to stand trial for the murder of his wife, Anni, while on honeymoon, London Judge Howard Riddle said.

South African prosecutors say they have evidence that Mr Dewani paid a Cape Town taxi driver to arrange Anni Dewani’s murder.

Mr Dewani, 31, from Bristol, denies any involvement in the killing.

The decision will have to be ratified by the UK Home Secretary Theresa May.

Mr Dewani’s legal team have said they may lodge an appeal against the decision.

The Bristol businessman has denied any involvement and fought extradition proceedings. He says he is suffering from severe post-traumatic stress disorder and is too unwell to be extradited.

Judge Riddle took over two hours to read out his judgement and said the “court must consider the strong public interest in honouring our extradition treaty”.

He said while he had “no doubt” that Mr Dewani was suffering from severe post-traumatic stress disorder and depression, he was satisfied he would receive the appropriate mental healthcare in South Africa.

The judge was satisfied that Mr Dewani would be held in a prison with good facilities and that he would be kept in a single cell.

Lifestyle


The Gautrain’s new city to city high-speed train route between Johannesburg and Pretoria has officially opened - to the delight of commuters.

After a month of delays, the first 38-minute ride between Johannesburg and Pretoria took place when VIPs caught the train at Sandton Station shortly after 7.30am.

It is a journey that could end frustration for motorists commuting between the two cities daily.

“I have been driving to Pretoria from Randburg and back, for 11 years, and it made my life miserable,” passenger Gloria Maaka-Tlokana said.

“But this is so much easier, peaceful and secure and I can tell my family exactly what time I will be home.”

The launch was announced by Gauteng transport MEC Ismail Vadi.

The R25.7 billion project is expected to cut the number of cars on the congested N1 Ben Schoeman freeway by 20 percent.

The first leg of the project - between Sandton and the OR Tambo International Airport - was launched successfully two weeks before the start of the 2010 World Cup.

Water seeping into the tunnels between the Rosebank and Park stations was apparently the reason the launch of this phase was put on hold.

Lifestyle

joBurg-pretoria gautrain opens to puBlic

odds are 60-40 against douBle-dip says gordhanFinance Minister Pravin Gordhan has said that, in the Government’s view, the odds are 60-40 against the global economy falling back into a so-called ‘double-dip’ recession.

He said the government was carefully monitoring the latest global financial crisis.

“I think our own view at the moment is it’s 60-40 against the double-dip. There are other people who say it’s now 50-50... but let’s wait and see, and we’ll keep South Africa informed about what we need to do.”

Cabinet urged South Africans and businesses to “exercise caution and responsibility” in the management of finances, in view of current world economic events.

“Cabinet would like to reassure South Africans on our financial austerity measures, especially in light of the plunge by global markets in the recent week,” spokesman Jimmy Manyi said.

Even before the 2008 financial crisis, South Africa had taken the necessary measures to ensure the soundness and stability of its financial system and fiscal accounts. This had enabled the country to weather the crisis when it hit. As a result, South Africa was one of the first countries in the world to register positive growth post the recession, he said.

Economic growth accelerated to over three percent and the growth forecast for this year was 3.4 percent.

The National Treasury will publish growth forecasts in October, when it releases the medium-term budget policy statement.

Business

Double-amputee sprinter Oscar Pistorius and controversial world 800 metres champion Caster Semenya have been included in South Africa’s 26-member squad for the World Athletics Championships in Daegu, South Korea, at the end of August.

“We selected all those athletes who fulfilled the qualification criteria,” Athletics SA (ASA) president James Evans said.

“With 11 athletes competing for the first time at this level, we are very clearly looking to 2012 and beyond,” he added.

Cabinet spokesman Jimmy Manyi has confirmed that reduced toll tariffs for the Gauteng freeway improvement project phase A1 had been approved.

Motorcycles would pay 24 cents a kilometre, light motor vehicles 40 cents, medium vehicles R1, and “longer” vehicles R2 a kilometre, he said.

Qualifying commuter taxis and buses would be exempted entirely.In addition to the 31 percent e-tag discount, other discounts

applicable would be the time of day discount available to all vehicles, and a frequent user discount for motorcycles and light motor vehicles fitted with an e-tag.

Cabinet had agreed that Transport Minister Sibusiso Ndebele should give effect to the approval in terms of the SA National Roads Agency Limited and National Roads Act, Manyi said.


panic as uk riots spreadRioting spread across the UK August 9 after a third night of violence, with unrest flaring in several major English cities.

In London, homes were burgled and bystanders were attacked by masked youths, while shops were looted and buildings were set alight.

Birmingham, Liverpool, Nottingham and Bristol also saw violence.

Prime minister David Cameron returned early from his holiday to discuss the unrest, which first flared after a peaceful protest in Tottenham over the fatal shooting of a man by police.

The Met Police described the events that followed as “copycat criminal activity”.

London’s Deputy Mayor Kit Malthouse blamed the violence on a relatively small number of criminals motivated by greed rather than worries about the conduct of the police or wider social problems caused by Britain’s sluggish economic recovery.

TravelSport

Lifestyle

pistorius, seMenya in sa teaM

caBinet approves lower

gauteng tolls

“It is exciting to see this kind of talent at our disposal for the next four years, and with an average age of 24 years, this is quite healthy.”

Pistorius, who was cleared to run against able-bodied athletes in May 2008, left it late, but qualified in style for the global championships.

Ranked 18th in the world this year, Pistorius improved the A-qualifying standard by 0.18 seconds.

He was also named in the men’s 4x400m relay squad.

Semenya, meanwhile, was inconsistent in her build-up to the global championships.


With the excitement building, South Africa Magazine takes a look at the Springboks’ World Cup chances. The defending champions will be strong contenders for sure

but can they bring home the trophy?By Ian Armitage

Can the Boks win theRugby World Cup?

O n 9 September New Zealand kick-off the 2011 Rugby World Cup, facing Tonga in Auckland. Two days later in Wellington, South Africa defend their title, with Wales providing the first

challenge to the Springboks’ crown.Despite injury doubts around John Smit – the most

experienced captain in world rugby sustained an arm injury during the 14-9 Tri-Nations loss at home to Australia – the defending champions will be going into the 2011 World Cup as one of the hot favourites.

Recent form however hasn’t been good. Critics say it will take a mega effort to get anywhere near wining

the title again.The biggest rivals at the moment have to be New

Zealand and England. New Zealand recently crushed South Africa 40-7, the Boks’ worst ever defeat. That loss

left coach Peter de Villiers wondering how to make it better before the start of the World Cup. There were positives tough, he said.

Rugby World Cup SporT


“If you look at the scoreboard you’ll be very, very disappointed but if you look at how we sometimes controlled the game but couldn’t convert our possession into points, that was more disappointing than anything,” he said.

“We don’t want to become a good losing side. As winning becomes a habit, so does losing and we don’t want that kind of habit.”

Can South Africa retain their title? We think so, but it won’t be easy. The Boks are in the so-called “pool of death” with Samoa, Wales, Fiji and Namibia, and no team has ever won back-to-back titles. What they do have is bags of experience. Collectively, captain marvel Smit and vice captain Victor Matfield have played over 200 Tests and, between them, can handle any leadership challenges. In Jean de Villiers and Jaque Fourie the Springboks have a seasoned and very intelligent combination that should be able to create opportunities for Bjorn Basson, one of the fastest men on a rugby field. For sheer physicality too, noone in the world can match the Boks and the likes of Willem Alberts, Schalk Burger and Tendai ‘The Beast’ Mtawarira will be landing hits that will rattle the ancestors of their


opponents. South Africa also have a ridiculous amount of depth with the emergence of Patrick Lambie, Lwazi Mvovo, Coenie Oosthuizen and Sarel Pretorius set to further bolster the Bok ranks.

One weakness is the kick-and-chase gameplan, although with teams unwilling to take risks during the World Cup this could actually work in SA’s favour.

The key player has to be Fourie du Preez. If one man can get mileage out of South Africa’s dodgy game plan, it’s him, with his pinpoint kicks and clever passes.

South Africa did not compete in the first two World Cups in 1987 and 1991 because of anti-apartheid boycotts, but the Springboks have more than made up for it since, winning the tournament twice in four attempts. Will this be title number three? The, the boks play a brand of fast and physical rugby that is notoriously difficult to beat. END

We don’t want to become

a good losing side

peter de Villiers

ENGLAND ROAR?

Can Martin Johnson’s promising team go one better than their final defeat at the hand of the Springboks in 2007? Former Springbok and Saracens hooker Schalk Brits certainly thinks so. “If England can just get their kicking game up to scratch and play in the right areas, they could win this World Cup,” Brits said in a recent interview with This is London. “I really think they’ve got a chance. Attack isn’t such a big deal in the World Cup,” he added. “Look at previous tournaments: people are scared to take chances, so your kicking game dominates and your defence dominates.

“England’s defence is normally good. During the Six Nations, the set-pieces were really good; they’ve got a great scrum and a great 10.”

Brits said that he was impressed with Jonny Wilkinson’s form and that he would start the world cup winner in New Zealand.

“Toby Flood is an awesome player and has played some good rugby for Leicester but I’d still play Wilkinson in the World Cup.”



THE RiVALS

NEW ZEALAND DAWN?

New Zealand are the best rugby team in the world and are definitely the favourites. Their strength is consistency. The All Blacks rarely have a bad game and to beat the number one team in the world you have to force them into making mistakes. That’s easier said than done with Richie McCaw and Daniel Carter keeping the players around them calm and collected. In centre Sonny Bill Williams the All Blacks also have the most dangerous attacking player in the world, a man whose offloads in the tackle are already legendary.

Where they could fall short is mentally. There will be a lot of pressure on the home side to succeed. The All Blacks are also overly depended on Dan Carter. With no obvious replacement waiting in the wings, an injury to the fly-half will be disastrous for New Zealand. Carter breaking down is not coach Graham Henry’s only injury concern with Super Rugby taking its toll on rising stars like Israel Dagg and Sean Maitland.

The All Blacks’ key player is almost certainly Richie McCaw. Captain McCaw can single-handedly destroy teams with his skill at the breakdown.

Former Springboks coach Jake White, who guided South Africa to their second global crown in France in 2007, has said he believes Graham Henry’s team will end their series of World Cup chokes when they host the tournament for the first time since 1987.

If McCaw, Carter and Williams have a half decent Tri-Nations the All Blacks it’s hard to see them not winning.

such a big deal in the World Cup,” he added.


pool D teams

A T A G L A N C E

FiJi

iRB RANKiNG (AS OF AUG 15): 14

WORLD CUP APPEARANCES (iNC 2011): Six

WORLD CUP BEST: Quarter-fi nals 1987, 2007

The Fijians live and breathe rugby, the game dating back on the island to 1884. Their pace and daring has seen them become a byword for the sevens game, but they have never quite broken through in 15s. In what is a very tight pool, Fiji will be competing all the way with Samoa and Wales for second place behind likely group winners South Africa.

NAMiBiA


WORLD CUP APPEARANCES (iNC 2011): Four

WORLD CUP BEST: Pool stages

Qualifi ed for their fourth World Cup with victory over Ivory Coast and won the IRB Nations Cup in 2010 but will have ambitions no greater than chalking up a fi rst ever win at the fi nals. And even that is going to be tough for the Namibians.



SAMOA


WORLD CUP APPEARANCES (iNC 2011): Six

WORLD CUP BEST: Quarter-fi nals 1991, 1995

Watching Samoa is not for the faint-hearted. In between some dazzling running which has earned them plenty of success in the sevens arena, they are renowned as the hardest tacklers on the planet. The Samoans favourites to take second spot in the pool.

SOUTH AFRiCA

iRB RANKiNG (AS OF AUG 15): Third

WORLD CUP APPEARANCES (iNC 2011): Five

WORLD CUP BEST: Winners 1995, 2007

Obvious favourites to qualify as pool winners, the Springboks will be aim to do what no team has yet managed - retain their World Cup crown. Champions under Francois Pienaar on home soil in 1995 and current skipper John Smit four years ago, the South Africans head down under with a stable squad and with class oozing from every department. The Boks have never lost to Fiji, Samoa or Namibia and only once in 25 meetings against Wales.

WALES

iRB RANKiNG (AS OF AUG 15): Seventh

WORLD CUP APPEARANCES (iNC 2011): Seven

WORLD CUP BEST: Third place 1987

In November the Welsh lost narrowly to South Africa before being held to a draw by the Fijians. That was followed by three wins in the Six Nations with defeats by England and France. Recently beat England in a World Cup warm up. Third spot is likely in this group.


p A C K , p A L L E T I S E A n Ddd

Ken nieuwenhuizen, the managing director of Sundays River Citrus

Company (SRCC), talks to South Africa Magazine about a host of issues including Black Empowerment.

By Ian Armitage

i n 2009, Ken Nieuwenhuizen, the managing director of Sundays River

Citrus Company (SRCC), having spent many years travelling around the world working for drinks giant Coca-Cola, was presented with a very different and challenging opportunity - the lure of entering the fi eld of agriculture and joining SRCC proved irresistible.

“I’m Eastern Cape born and bred,” he tells South Africa Magazine. “The challenge was one too good to rebuff.”

Formed in 1924, SRCC – today a specialist in sorting, grading, packing, palletising and dispatching fruit for export and local markets - originally operated as a citrus packing facility. Back then, the citrus industry was Government controlled and the Control Board sold its produce. This all changed in the late 90s, Nieuwenhuizen says.

“Deregulation changed everything. SRCC was formerly run as a co-operative but now operates as a company limited by guarantee and is owned by 120 members; we are essentially non-profi t, with our primary objective being to maximise the returns to our producers,” he explains.

SRCC is located in the

Sundays River Citrus Company FEATUrE


Eastern Cape’s Sundays River Valley, an area that is rich in agriculture.

“We have three primary crops: lemons, navels and valencias,” Nieuwenhuizen says.

Having packed 20,000 cartons in its first year, the company and its grower shareholders managed to increase production to the record of 8.5 million cartons packed and exported during



the 2006 season – almost 12 percent of South Africa’s total citrus crop that year.

“Because of the variables in citrus production, on average, we pack anything between seven and 8.5 million cartons per annum,” Nieuwenhuizen says.

SRCC has a firm customer base in the UK, supplying high-profile supermarkets such as Tesco. It also has numerous customers across

We have three

primary crops

Now makes 15% more concrete.



Europe, Russia, the Middle East and the Far East. Meeting the demanding requirements of customer accreditations has become an integral part of its offering and has contributed to its success.

“Although we obviously supply our local market, because of the counter-seasonality of our product, most of our total produce is exported to countries in the northern hemisphere,” Nieuwenhuizen says.

While the company does not supply to the US market, it is active in Canada, he adds.

The picking season starts in March and runs through to October each year.

“With most customers based overseas, the big challenge we face is time,” Nieuwenhuizen says.

Indeed, delivering perishable goods over long distances and making sure they stay in excellent condition isn’t easy; the market place is demanding and competitive. “The length of our supply chain is a big challenge,” Nieuwenhuizen adds. “As soon as we’ve packed the fruit we need to place it under refrigeration; our challenge is to ensure that the produce is packed and refrigerated properly for the whole duration – our objective is not to break the cold chain!”

The company closely monitors cold chain performance based, inter alia, on the management of ‘dwell time’, he says.

“We want to minimise the time that our fruit is stored in local refrigeration before it is shipped so various storage initiatives are being explored to achieve this goal.

“Although, on the whole I think we manage the process well and I’m happy with our performance, we will always strive for continuous improvement in this vital aspect of our supply chain. ”

Experienced workers inspect all the fruit throughout the packing process, while traceability has become increasingly important. “Traceability has become a

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Helicovir™ is a scientifically proven killer of bollworm and very effective when used as a regular preventative spray. By establishing and maintaining a threshold level of virus in the field growers are able to cause mass death of bollworm populations to below economic threshold levels.

Helicovir™ has been effectively used in sorghum, maize, sweetcorn, wheat, vegetables and fruit crops such as citrus, apples, peaches, plums and berries. Helicovir™ is registered for organic farming.

FoodTech

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John Bean Technologies (Pty) Ltd Koper Street, Brackenfell 7560 • PO Box 891, Brackenfell, 7561 Tel: 021 982-1130 • Fax: 021 982-1136 Email: [email protected] • www.jbtcorporation.com

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JBT F&BR JULY 2011.indd 1 2011/07/07 3:06 PM

requirement of many of our customers and we are able to trace produce back to every orchard.

“Traceability and close relations with each farm are an integral part of our success.”

Nieuwenhuizen is also very excited by the progress of SRCC’s Black Empowerment programme.

He is committed to increasing the number of black farmers that are members of the company.

“That’s the goal,” says Nieuwenhuizen. “We are aiming to increase the number of black farmers that are members of our company through a government-assisted programme that purchases

farms, educating, training and preparing the farmers to run their operations. Our structure allows us to do this successfully, by retaining these black farmers as members of our organisation and providing them with all the support services that we offer.

“We have been extremely successful with six farms under that programme so far,” he continues. “We have reached a production level of about 13 percent of our volume coming from those farms and we would want to try and get – not that we will have a ceiling – to about 30 percent over the next few years. We are now actively looking for more farms that are up for sale.”


Traceability and close relations with each farm are

an integral part of our

success

Linde 2.5 TON

Linde 3.0 TON

Linde Electric E15C


Nieuwenhuizen says his goal is to “consistently obtain superior returns for our producers, our primary customers,” and cites farm management as one of the big challenges the future will throw up. “It is all about trying to satisfy the customer – that is no different to any other consumer related business; the challenge we and our producers will always have is to produce and supply consistently the top quality fruit that meets our customers’ increasingly high standards, while faced with ever-increasing input costs and a volatile exchange rate, on a profitable and sustainable basis.

“Another matter we wrestle with is the issue of labour versus automation,” he adds. “We have to balance our desire to offer employment opportunities with the need to be more efficient.

“We are currently very labour-intensive but you also have to look at equipment to improve the quality and efficiency of your operations.

“To stay in the race you have to follow trend, and we are always looking at how we can upgrade our operations to ensure that we remain a citrus leader, while balancing out our desire to offer local employment opportunities.

“SRCC is the benchmark for the citrus service industry in Southern Africa, and it is committed to being an innovative citrus enterprise and the first choice for citrus services and products for our customers worldwide,” he concludes.

To learn more visit www.srcc.co.za.END

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Fifty years old this october, Mediterranean Textile Mills has an inimitable knowledge of the South African textile sector. However with a dynamism and ambition to rival any start-up, this company is far from stuck in the past. By Jane McCallion

A G o o D y A r n

T he story of Mediterranean Textile Mills is one of true entrepreneurship. In October 1961, Bruno Varoli, an imigrant from his native Italy, established what

was then known as Mediterranean Woollen Mills in Hammarsdale, KwaZulu-Natal. What began as a facility recycling the wool from old coats sent from Europe has grown into an enterprise that supplies textiles for use in fashion, school wear, work wear and more. The company is still family owned, with Bruno Varoli’s son, Marcus, having taken the reigns a number of years ago.

While it was founded as a woollen mill, it was only 10 years until Mediterranean Textile Mills took on its current name. It was also at this time that the staple fabric produced by the mill changed from wool to poly-viscose, as Sales Director Lindsay Meyer explains. “We had moved on from just

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Mediterranean Textile Mills FEATUrE


woollen coats and the poly-viscose blend allowed us to produce fabric that could be made into skirts, jackets, trousers, and so on. It was through this that we were able to become associated with the major retailers in South Africa and business just grew from there.”

Being a privately owned business has afforded Mediterranean a lot of its success, Meyer believes. “Being owned and run by one man has always been an advantage for us in terms of giving us fl exibility and adaptability. For example, if Marcus feels the company needs a new piece of equipment to broaden our range, we are able to simply go out and buy it without having to get approval from co-directors. It was this that enabled us to move from wool into poly-viscose in the fi rst place.”

This ability to be responsive to the market has been very important, as Mediterranean has seen lots of changes and faced many challenges over the years. In 2000, the company introduced a Lycra blend into its range, which gives extra comfort to the wearer. In 2005, the company added a weft knitting operation into its portfolio, and produces quality open width and tubular fi nished fabrics.

The business’s innovative edge, which has been the driving force in its success, has been even more important recently. Competition from China has put a great deal of pressure on the South African textile and clothing manufacture sectors and there have already been casualties. “Approximately 50 percent of the garments you will find in retailers throughout the country are bought in ready made from China. Understandably, this has a direct effect on our customers, i.e. the companies who make out textiles into finished garments for the retailers, and it’s getting tougher,” says Meyer. Even in the organisation itself, there has been one loss. “Mediterranean has always been known as a vertically integrated organisation. We carried out all the processes from spinning to finishing ourselves, which once again afforded us a great degree of flexibility and enabled us too keep a greater eye on quality. However, last year we were forced to sell our

spinning division, simply because it was no longer economical to keep it, and we now buy in the yarn we use.”

One area that has been particularly hit by imports is fashion; although Mediterranean still works in this sector, demand for domestic produce has been dwindling. “There is also the problem that attitudes to clothing have changed dramatically over the decades since our business started,” says Meyer. “A generation or two ago, people would buy a pair of gloves and keep them until they were worn out. Now, fashion is fast and disposable, which puts the emphasis on price rather than



We had moved on from just

woollen coats and the poly-

viscose blend, which allowed us to produce

fabric that could be made into skirts, jackets,

trousers

Rudolf Chemicals (Pty) Ltd17 Progress Road,New Germany, Pinetown

Telephone : +27 31 705 8961Fax : +27 31 705 8964Email : [email protected]

TRADED RAW MATERIALS (PTY) LTD

TRM CONGRATULATES MEDITERRANEAN TEXTILE MILLS ON 50 YEARS OF EXCELLENCE

TRM has serviced the Textile TRM has serviced the Textile Industry with Raw Material products for 20 years.

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As a proud supplier to As a proud supplier to Mediteranean Textile Mills, we hope that all the hard work put together by the staff and management will take them to a very bright and prosperous future.

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quality.” However, the organisation has been working hard both to fight this trend where possible and to pick up business in other areas. Two areas that are particularly successful are school wear and work wear. “We provide the basic grey twill fabric that is used to make school garments for PEP Stores, which is one of the country’s biggest retailers of school clothes,” Meyer explains. “Another of our divisions deals specifically with government tenders. Through this side of our business, we supply all the fabric for police shirts, army shirts and have recently won the contract for the Post Office as well.” Additionally, Mediterranean manufactures protective clothing such as overalls. In this sector, the company has a major advantage in that its products are accredited by the South African Bureau of Standards (SABS). “All uniforms used by large public companies such as ESKOM have to have the SABS marque. So if there is ever a tender for that kind of work, we have

an advantage and that is also an area where, largely, there is no competition from abroad.”

This kind of deal has not been handed to them on a plate, however, and there has been a lot of industry-level lobbying carried out, in which Mr Varoli has been very involved. “Marcus often meets with representatives from the

Department of Trade and Industry to discuss the kinds of challenges our industry is facing and what can be done to address them,” says Meyer. There have been some important victories, such as regulations that have recently been

put in place which mandate that any garment worn by an employee of a government or quasi-governmental authority must be made in South Africa from textiles also made in South Africa. “The truth of the matter is, it is in everyone’s interest to keep the industry going,” says Meyer. “The textiles industry employs a lot of people, so if it goes so do those jobs. Also, we have seen from other countries, that if the textiles industry disappears, the clothing industry follows suit very quickly after. What’s more, one those skills are gone, they are virtually impossible to bring back – decline in the industry is a one way



The textiles industry

employs a lot of people

TWO SHIPS TRADING 221

(PTY) LTD

Distributors of

Products

Tel: +27 31 702 4347 Fax: +27 31 709 5137


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Proud suppliers to Mediterranean

TextilesDyeing and Finishing

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street, so we have to fight to protect it.”For the future, Mediterranean

Textile Mills has exciting plans that stay true to its principles of verticality, localism and innovation. Earlier in 2011, the company secured a loan from the Industrial Development Corporation of South Africa to set up a clothing operation in one of it’s premises. Here it will soon employ 400 local people to manufacture its own range of workwear, shirts and underwear, which will be sold under the brand “afri-CAN, we can do it”. The launch of this range will open up new avenues of business and, Meyer says, could even one day lead to a chain of stores. With Mediterranean’s past successes, forward-thinking nature and position as a champion for industry, this type of ambition is something that is well within the bounds of possibility. END


In a saturated and highly competitive market, leading top-end self-adhesive label manufacturer Rotolabel is committed to world quality products and a principled,

customer-orientated strategy, sales director Grant Watson says.

By Colin Chinery.

quality and values

T o p L A B E L p r o D U C E r A D H E r E S T o

T he face is both familiar and anonymous. From award-

wining South African wines to the aisles and shelves of our top retailers, the creations of Cape Town based Rotolabel reach out to court our attention; high quality self-adhesive labels from a top designer and producer in its niche.

Founded in 1982, Rotolabel specialises in high quality pressure sensitive label printing. “We are major suppliers to the food, wine and hygiene industries and have built a reputation for total commitment and dedicated service to our

Rotolabel FEATUrE


Digital responds

much quicker to the market since you

don’t need plates and negatives

clients,” says sales director Grant Watson.

“While we collaborate with top companies and brands, we deal right across the spectrum, treating everyone exactly the same, whether a blue chip customer or someone straight off the street. That is our philosophy.”

As well as advanced printing technology, Rotolabel offers innovative finishing techniques including foiling, varnishing and a range of other added-value processes necessary to produce world-class labels. Rotolabel has also been a pioneer and front-runner of digital printing,

advantage in a competitive market such as the wine industry with its insistence on high quality labels on demand and at keen prices. The versatility of digital printing meets these challenging requirements both in quality and cost-effectiveness.

“Digital responds much quicker to the market since you don’t need plates and negatives. Its cost is very competitive on the smaller runs, stock is better managed and the quality unquestioned. It’s also easy and inter-changeable, and here in South Africa where 60 or 70 percent of average runs are less than 2,000 metres, digital fits in without question.”

So the market is increasingly demanding? “Very much so. Economic circumstances being as they are, everyone is trying to keep their inventory lower. Expectations of printers are almost like a mall; everything is on the shelf, and South Africa is totally over-traded.

“Some people simply do not understand why there are lead times in manufacturing, so the expectation is that they can pick up a phone and within a day or two get labels. And we’ve got to try and meet that. There’s no two ways about it, over the last two years this need or perception has become


We are a world-class company when it

comes to consistency

of quality

© KURZOver the years, Synchron has established a nationally respected reputation, based on their philosophy of quality products, competitive pricing and service excellence. Synchron appreciates the loyalty of Rotolabel and attributes this to the partnership we have formed over the years based on a mutual over the years based on a mutual desire to supply quality solutions to our customers at all times.

Synchron suppliers of:• Hot and cold foils

• Pigmented and coding foils• Holographic foils• Scratch off foils

• Magnetic stripe and signature panel foils• Brand security solutions• Brand security solutions

Contact details:National Customer Service Number : 0860 109983

www.synchron.co.za www.kurz.de

Proud to be associated with

Rotolabel

For all your delivery needs

Rotolabel FEATUrE

more prevalent in the market. Lead times are becoming more demanding, and as a company if we are not hungry enough for it then someone else will get the work. We must continue to stay hungry and not turn any work away.”

With movement out of recession, will trading expectations improve? “I think South Africa’s moving back into recession. The World Cup gave us a huge silver lining but talk around now and you find volumes are down.”

A front runner in its market, Rotolabel is facing two main challenges says Watson. “It’s a saturated market and organic growth is no longer there. This is a huge challenge because we have not been a company that aggressively targets customers who are not ours. That has not been our philosophy, but there’s a big question mark over our heads now.

We are known to be very professional, very fair. We like to build long-term relationships. We like to be a nice

company

“Where might new growth come from? A lot of new players are coming into the market because they think South Africa is the footway to the Africa. It could be - in other forms of packaging definitely - but in self-adhesive labels I don’t see it.

“Another issue is that a lot of retailers are tending to go to one layer, switching for example from a bag and a label to a printed bag - and despite what may be said, it’s not happening for environmental reasons.

“It’s very important to look at total cost, not just the cost of the packaging but also the cost of issues like minimum quantities, stock and re-orders. With labels you can order less stock and have change overs in design, products or legislation.

“Normally - and especially with digital - you can order say 10,000 labels in at a time and not have to worry about keeping an inventory. But with printed form you can get to 300,000 in three months and then have to order another 300,000. So what’s the cost of stock holding on you cash?

“Yes a printed product could be a few cents cheaper than a label and a product, but look at the cost of the re-orders which will be a lot higher, along with your stock and write off risks. In a word, you must look at the


L ABEL ALES

www. labelales .co.za

P.O. Box 719 GOODWOOD, 7459

Tel/Fax: 021-5565736Cell: 079-497-3595E-Mail: [email protected] REG: 4480228875

• SUPPLIERS & BROKERS

• GODEX AND CITIZEN THERMAL LABEL PRINTERS

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We are serious about delivering the best personal service and products at the best prices to suit your requirements.

total cost and total implication not just a single shot.”

Technology and innovation are keys to Rotolabel’s success, and Watson points to additional values.

“We are a world-class company when it comes to consistency of quality. Anyone can print a good label but consistency is paramount. Give us a range and we will ensure that the elements within that range match each other.

“I think we’ve got very good values. We are known to be very professional, very fair. We like to build long-term relationships. We like to be a nice company.

“A real company made up of people, not figures and numbers and driving profits. It’s about really going out of our way for a customer - I know that’s a cliché, but we really live it - to ensure that our customers lives are as hassle-free as possible. We get huge demands from our customers and with our never-say-die attitude always go out of our way to meet them.

“Another defining factor I feel is our people - another cliché, I know. In my sales team of nine for example, the average length of service is 10 years so they have a strong knowledge and grasp of the business, which is very important. And they enjoy their job, they want to be here.

“We were once a family firm and although we are a now a corporate we don’t have the centralised corporate mentality and still instil family values. Why come to us? Because we really care and go out of our way for the customer. Lots of people say that, but I believe we really do it. Look at our customer profile and you will see very many have been with is for a long time.”

Simplicity it has been said, is the ultimate sophistication and Watson agrees.” We try to make things simple, stick to the basics, live by being honest, having integrity and doing things right. And we want to be very convenient to deal with.

“At Rotolabel we are very professional, have all the expertise, and will make your life easier. People sometimes shy away thinking ‘oh they deal with Woolies, they deal with Johnson and Johnson, they are going to be expensive.’ Well that’s simply not the case, quite the reverse in fact. Wherever you are coming from we are committed to producing labels which match the stature and quality of your products.” END

Rotolabel FEATUrE


Experience the extravagant elegance of rail and travel on the most luxurious train in the world. Rovos Rail’s pride of Africa.

By Ian Armitage

I n T H E W o r L D

T H E M o S TLuxurious Train

R ovos Rail’s Pride of Africa is arguably the most luxurious

train in the world and it, in the words of marketing manager David Patrick, offers an “old-world elegance and luxury”.

“We are celebrated for our class and elegance and are rightfully proud of our dining and on-board service,” Patrick says. “Our entire experience is consistent in meeting the highest possible luxury standards. The coaches have been painstakingly rebuilt with fine wood panelling, traditional furnishings and period décor for a grand ambiance.”

Unsurprisingly, since its establishment in 1989, Rovos Rail has earned an international reputation for its truly world-class travel experiences.

“Our unique safaris through the heart of Africa combine magnificent scenery with the glamour and excitement of the golden age of rail travel,” Patrick says.

Rovos rail is not just a South African experience, and its routes extend to five countries.

“Our unique train safaris through the heart of Africa combine some of the most magnificent scenery with the glamour and excitement of the golden age of rail travel,”

Patrick explains. “We create an atmosphere of good food, good wine and good conversation. On board you can recapture the romance and atmosphere of a bygone era, when privileged travellers experienced the magic and mystery of Africa in a relaxed and elegant fashion.”

Rovos Rail is the work of Rohan Vos, a latecomer to the world of trains. He was involved in the motor spares industry when one of his staff got him involved in a steam train restoration project in 1986. Since then he has collected and restored probably the largest and most original train set in the world. The rolling stock dates from around 1911 to 1930 and now runs on private tours all over Southern Africa. He even has his own station, Capital Park, built in the 1940s in Pretoria.

“There’s a story behind all of the Rovos Rail locomotives, their acquisition and restoration,” Patrick says.

Indeed, each one has a distinctive character and charm and all are named after members of owner Vos’ family.

The first engine acquired was No 2702 Bianca, a Class 19D locomotive built by Borsig in 1938. It was purchased in 1986 from Loewenthal’s Scrap Metal.

Rovos Rail FEATUrE


The design of the train has given us suites

considerably larger than the world’s

famous trains such

as the orient Express, the Blue

Train, royal Scotsman in England and El Andalus

in Spain

Today, the company runs two trains with a passenger capacity of 72 each. They, along with Rovos Rail’s rolling stock, consisting of 60 carriages and fi ve operating locomotives, its administrative operations and workshops, are based at Capital Park.

“Capital Park has played such an important part in South African Railways History and provides the perfect home for our trains,” Patrick says.

The site covers 25-acres and boasts 15 lines, totally a distance of 12km of which a 100m section is under roof.

“We have something wonderful here,” Patrick adds. “We have rebuilt the site to world-beating standards, establishing a working railway museum.

“Our Headquarters caters to steam enthusiasts, tourists and local visitors alike. “

Unsurprisingly, the services offered by Rovos have become increasingly popular amongst members of South Africa’s business community. So much so that it runs a Rovos Rail Events Train, which Patrick says is “an ideal venue for corporate clients to stage conferences, incentives or product launches”.

The train accommodates up to 250 guests and is only suitable for daytime journeys.


Rovos Rail FEATUrE

ALEXANDER FORBES

It would be fair to say that our tourism industry has had a wonderful growth-opportunity boosted by the success of the 2010 Soccer World Cup, which also allowed the Insurance Industry to grow and prove that we have the know-how to advise our clients on risk and to manage the risks brought about by an ever expanding tourism industry with growing numbers of guests.

We also played a role in helping clients implement risk management practices, aimed at reducing the impact of any identified risk and which allowed the clients to measure up to international standards.

These risk management practices continue today and have been embedded into the businesses, making the clients more competitive and sustainable.

“Limited only by time and distance, there are many alternative uses for the train, which include a three-hour circular trip around Pretoria or a one-way journey to any destination within eight hours’ rail travel time from Pretoria,” explains Patrick. “Depending on the number of guests, the Events Train can host, with full-bar facilities, a five-course sit-down dinner for up to 96 guests, a three-course sit-down meal for up to 192 guests in two sittings or, for 250 guests, hot snacks, canapés and cocktails served for the duration of the journey. “

Overnight journeys of varying durations remain the core business, however.

“I would encourage South Africa Magazine readers to step aboard the wood-panelled coaches, classically remodelled and refurbished to mint condition, and enjoy fine cuisine in five-star luxury.”

There is a lot going on at Rovos Rail. To learn more visit www.rovos.com. END

tbsp

/// beyo

nd th

e line 3

3667/E

Sip on a coconut whilst strolling down Copacabana Beach.

Attend the opening ceremony of the Olympics.

Order a beer in German at the Oktoberfest.

Watch Celtic take on Rangers in Glasgow.

Beat a Russian at chess. Get a haircut in Harlem.

Swim in Lake Titicaca.

Ride an elephant.

Surf in Hawaii.

Stay in an ice hotel. Snorkel in the Seychelles.

Touch the Great Wall of China.

Travel to the end of the world.

Flirt with an air hostess on Japan Airlines.

Have a mojito in Hemingway’s Bar, Havana.

Drive through the South of France on a Vespa.

Live without regret.

An Authorised Financial Services Provider

33762 AF ELEPHANT 250X180.indd 1 2011/07/28 12:04 PM


Rovos Rail FEATUrE

Namibian Explorer13-day Escorted TourThis journey captures the very essence of namibia, which boasts wild seascapes, rugged mountains, remote deserts, stunning wildlife and colonial cities. The tour culminates with a visit to Victoria Falls!

THE HIGHLIGHTS

• Six nights on board the pride of Africa, one of the world’s finest luxury trains

THE HIGHLIGHTS

• Ten nights on board one of world’s top luxury trains, with all meals and drinks included; complimentary mini-bar in your compartment

• Two-night stay at five-star Tau Game Lodge, with several game drives

• Fabulous meals and service on board pride of Africa

• Kimberley Diamond Mine and Museum, with historic tram ride

• Victoria Falls Hotel overnight with plenty of time to explore the falls

• Zambezi river Sunset Cruise

• Chisimba Falls excursion

Rovos Rail: The African CollageNine-day Escorted TourThis 2,100-mile, nine-day South African adventure departs three times annually. Travel from pretoria eastwards to Malelane, south to Swaziland and Durban, west to Bloemfontein, then southwards again through port Elizabeth, oudtshoorn and George to Cape Town. you can enjoy game drives in Kruger park, Mkhaya reserve and Hluhluwe Game reserve; spend an evening in Durban and visit Addo Elephant park, as well as an ostrich farm in oudtshoorn. The journey ends in Cape Town.

THE HIGHLIGHTS

• plenty of time to relax and enjoy the many amenities of the train itself – the pride of Africa, one of the world’s finest luxury trains

• Travel on spectacular rail descent down the Montagu pass into George

• Several game drives in open vehicles: Kruger park, Mkhaya reserve and Hluhluwe Game reserve

• Addo Elephant park – home to over 450 elephants, as well as Cape buffalo, black rhino and a variety of antelope species

• ostrich farm visit in oudtshoorn

• Traveling the Garden route from Knysna

• Visit to the KWV Brandy Distillery in Worcester

• Tours of Durban and Bloemfontein

Bloemfontein, then southwards again through

• Six days exploring namibia: Fish river Canyon, Sossusvlei, Windhoek, Walvis Bay, Swakopmund, and incredible desert scenery

• Victoria Falls – truly one of the natural wonders of the world; sunset cruise on the mighty Zambezi river

• Touring the Cape peninsula

• Watching the sun rise over the Sossusvlei Sand Dunes

• Visit the former diamond mining village and now ghost town of Kolmanskop

• All tours, meals, all drinks with lunch and dinner, transfers, transportation and accommodations on the train, in hotels or lodges included

Rovos Rail Cape Town to Dar es Salaam14-day Escorted Tourrovos rail’s luxury train The pride of Africa runs between Cape Town and Dar es Salaam several times annually. This 14-day private rail tour stretches across South Africa and Botswana, touches Zimbabwe at Victoria Falls, and crosses Zambia to Tanzania.

TOURS

• Tours of Durban and Bloemfontein

Simon Max Bannister, Return, (From the Series Plastikos), 2010, Reclaimed Polyethylene. Collection: The Artist. SBSA 94916 -8/11 Moving Forward is a trademark of The Standard Bank of South Africa Limited

Moving ForwardTM

Water, the [Delicate] Thread of LifeWater is fundamental to every aspect of life on earth. Through the eyes, minds and creative endeavours of South African

artists such as Willem Boshoff, Karel Nel, William Kentridge, David Goldblatt, Deborah Bell, Norman Catherine and Marcus Neustetter, this exhibition explores the many facets of one of the most precious and threatened commodities on earth.

Standard Bank Gallery 29 July – 1 October 2011

Monday to Friday: 8am – 4.30pm Saturday: 9am – 1pm Tel: 011 631 1889

www.standardbankarts.co.za


Xavier Gobille, CEo of Renault South Africa, proudly speaks

about the accomplishments and vision of his team as renault celebrates 15 years in SA,

South Africa Magazine reports.By Ian Armitage

1 5 y e a R s o F r E n A U L T

I n S A

iMAGES: Quickpic.co.za

15 Years on, Renault marks it’s re-entry into the SA market.

1 5 y e a R s T his is a landmark year for Renault South Africa - it is celebrating the 15th

anniversary of its return to the domestic market.

The auto giant returned to SA in 1996 with little fanfare, via a partnership with Imperial Holdings’ Imperial Car Imports division.

Back then the average South African had little knowledge of the brand. The older generation had some recall of the Renault 5 of the 1970s, but that was about it.

It is all a far cry from what Renault South Africa is today.

“The Renault story today is very different; the brand has once again established itself as a leading contender,” CEO of Renault SA, Xavier Gobille told South Africa Magazine.

“The trendsetting Renault Scenic MPV, the Renault Mégane and the Clio have become familiar sights on our roads.

“Renault has proven its presence in the South African Motor Industry by its phenomenal growth and quality improvements.

“Today Renault is performing extremely well and has experienced a marked increase in sales volumes as a result of some great new product launches enabling the brand to break into and compete competitively in new segments.”

Renault’s commitment to South Africa is unquestionable, he added.

“We are totally committed to Renault’s success in South Africa; we’ve launched 16 exciting new cars locally in the last two years alone.

Renault South Africa FEATUrE


The renault story today is very different; the

brand has once again established itself as a

leading contender

Elegance meets sophistication and practicality in Renault’s new Fluence sedan



Revitalised Sandero range offers even better value, matched to class-leading space and features

FACT BOXNAME: Renault SA

CEO: Xavier Gobille

RETURNED TO SA: 1996

MODEL RANGE iNCLUDES: Renault Clio, New Clio 3, Megane Sedan, Megane Shake it!, Megane Sport, Laguna, Scenic and Espace

AT A GLANCE: South Africa plays a significant role in Renault’s global plan for sustainable growth and new product development. Its investment in local South African production is significant and just a part of a long-term commitment to the country.

EASTVAAL RENAULT

5 Moses Kotane Street : Bethal P O Box 2092 : Bethal : 2310

Tel : (017) 647 1098Fax: (017) 647 1099

Eastvaal Motors Bethal, represents the Eastvaal group in respect of Renault. Eastvaal Motors Bethal is geographically well positioned, with over 6 national roads converging on our town. The new N17 runs directly past our dealership. At Eastvaal Motors Bethal our focus is on customer satisfaction, from sales, parts and workshop, we strive to maintain a relationship with our customers based on integrity, transparency and trust. No job is to big or to small for us!

Come and enjoy a cup of coffee while you peruse our wide range of Renault vehicles, from the zippy Renault Sanderos to the impressive Fleunce! Its smooth silhouette hides a spacious interior, an elegant nish and a wide range of equipment. An outstanding drive! This vehicle boasts an array of features, including including Bluetooth handsfree kit, MP3 audio, and Satnav.

Leather seats, and all the safety features one would expect in this classy sedan!

Take a test drive and experience Renault ambloyance and technology. Contact us on 017 6471098 for any and all queries. Our experienced and friendly staff will gladly assist you.

“South Africa plays a significant role in Renault’s global plan for sustainable growth and new product development. Our investment in local South African production is significant and just a part of our long-term commitment to this country. We look to the next 15 years with justified optimism.”

In 2010, Renault grew total sales by 45.5 percent and sold over 10 000 cars, moving from 11th to ninth in market rankings.

This year, sales to end July grew a remarkable 23.1 percent, more than that of the market, which grew 19.7 percent.

It is a great achievement.“In our 15th year, we continue to

show the depth of Renault’s product range by launching a diverse number of new models and entering new segments. Renault South Africa is set to grow from strength to strength,” Gobille said.

The Renault reputation for quality of product, superior driving experience and quality of service has made Renault a sought-after franchise, he added.

The Renault model range covers a large sector of the market with the Renault Sandero, Twingo, Clio, Fluence, Megane Hatch and Coupe, Scenic Laguna, and Koleos 4x2 and 4x4 versions passenger ranges. Also, the Renault Sport derivatives doing very well – Twingo RS, Clio RS and Megane RS.

“We have great confi dence in South Africa and it is our intention to participate fully in the future growth of this country. We see our role as not only sharing in the growth of the automotive market here, but also sharing and assisting in the upliftment of this society that has so much potential. South Africa is earmarked to play a signifi cant role in


renault has proven its presence in the South African Motor Industry

by its phenomenal growth and quality

improvementsSouth Africa and it is our intention to participate fully in the future growth of this country. We see our role as not only sharing in the growth of the automotive market here, but also sharing and assisting in the upliftment of this society that has so much potential. South Africa is earmarked to play a signifi cant role in

Branches

Proud service provider to Renault South Africa since 2006


our company’s global plan for a successful future.

“Our decision to invest in local production clearly underscores our commitment to and confi dence in the local market.

“There are very exciting times ahead for Renault South Africa and I have great expectations. We have accepted every challenge that has come our way and now, the results are speaking for themselves.”

Gobille believes that Renault SA now has all the strategies in place to take full advantage of the brand’s potential.

Fancy driving the change yourself? To take a look at the Renault range, find your local dealership, or to book your test drive please visit www.renault.co.za. END

Renault South Africa is proudly expanding the Gordini range with the launch of the exceptional new Clio Gordini Renault Sport at the 2011 Knysna Hillclimb, sponsored

green


T H E F U T U r E I S

over the next decade a “green” city, costing

an estimated r5 billion, with hotels, office blocks,

upmarket retail and entertainment outlets,

restaurants and medical facilities, is being developed

by Dube TradePort next to King Shaka International

Airport, South Africa Magazine reports.

By robert Michaels

W hat will the cities of the future look like? Will they be baron wastelands, ravaged by nuclear

holocaust, or will they be some sort of utopia, boasting no crime, no pollution, and no over-crowding?

Fortunately the latter seems more likely and Dube TradePort’s new and ambitious “Green” city, known as Dube City, gives us a glimpse at tomorrow’s high-tech metropolis.

The R5 billion environmentally friendly “city” is to be built next to Durban’s state-of-the-art King Shaka International Airport.

Planners say Dube City, touted to become “Africa’s fi rst urban green precinct”, will consist of hotels as well a business, retail, trade and entertainment hub, and will offset the high carbon footprint created by the R7.8 billion airport.

The project is being spearheaded by Dube TradePort, the provincial government-owned entity which helped secure the R7.8 billion airport development for KwaZulu-Natal.

“Our key objective is to offset the growing carbon footprint in the early stages of the development of the airport and the trade port. We are developing a carbon calculator that will guide development in the region over the medium- to long-term,” Dube TradePort CEO Rohan Persad said in an interview with the Times newspaper, adding that the precinct “would serve” local communities in the Dube TradePort region, aviation users, passengers and other stakeholders.

A paperless environment and the reduction of expenses that result from the use of less energy, heating and cooling are the hallmarks of Dube City, he said.

“Dube City is part of our bigger strategic vision to create a world-class ‘aerotropolis’ around King Shaka International Airport over the next 20 years. The vision is

Dube TradePort FEATUrE




to create a 24-hour business, trade, leisure and entertainment hub, which will be linked to the airport, Umhlanga, Durban and Ballito by a future light rail service,” Persad told another paper - the Mercury - in May.

“Dube TradePort will include Dube City, in addition to a further 200,000m2 for light industry and property development near the trade zone at the Cargo Terminal and the agri-port,” he said.

“It will boast state-of-the-art IT and high-speed fi bre optic broadband communications capabilities as part of an overall cyber-port.”

Persad went on to say that Dube TradePort would operate as a “master planner”, developing the land around the airport that it owned with the Airports Company South Africa (ACSA). “The Dube TradePort Corporation has now been legislated by the KZN government as a provincial government-owned public company to lead the further development of the plans. ACSA own and run the airport, but we are leading the master-planning and development of the support zones around the airport as majority 60 percent shareholder,” he said. “While we are the master

BOSCH INVEKAWithin the Dube AgriZone, Bosch Inveka is responsible for the complete construction and installation of 16 hectares of greenhouses in 3 blocks, where tomatoes, cucumbers, sweet peppers and anthuriums will be grown. The project will be a turnkey one, in which the rolling hills of this landscape have made way for a horticultural area in a year’s time. The entire project is being established and executed in collaboration with the local government, and the greenhouses are intended for local growers.

iMAGE: CNdV Africa

iMAGE: Korigin

L&M Landscapers

Tel: (039) 3113582/9 Fax: (039) 3113700Cell: 073 235 9024

email: [email protected]

www.bizaiafrica.co.za

Trading as Biza iAfrica

driven bygreenhouse technology

www.boschinveka.nl

Our long lasting experience guarantees a broad knowledge of the greenhouse industry. Bosch Inveka has proven herself capable of perfect completion of turnkey projects all over the world. The complete organi-zation process is controlled from one location. Responsibility is held in one hand, and there’s one contact point for all your questions and comments. Our organization has knowledge of all techniques available to advise you and to support you in realizing turnkey projects. A high service level, also after the realiza-tion, guarantees optimal reliability of all vital processes.

The specialist in Complete Greenhouse Projects

Bosch Inveka is realizing a complete greenhouse project of 16 HA with Dube Tradeport.

It will boast state-of-the-art IT and high-speed fibre optic broadband

communications capabilities as part of an

overall cyber-port

developers, in some cases we will get involved in jointly developing specific sites at Dube TradePort to act as a catalyst to spur its development. We are also thinking bigger and beyond the TradePort land. We aim to closely integrate our plans with surrounding development and major land owners and developers – such as Tongaat Hulett Developments – as part of the greater aerotropolis plan.”


LANDSCAPE ARCHITECTSAND URBAN DESIGNERS

DUBE CITY

[email protected]@cndv.co.zawww.cndv.co.za

T: +2721 424-5022F: +2721 424-6837

Dube TradePort’s own headquarters, 29˚South, opened in August this year, and forms part of this new green city.

29˚South is situated at the heart of Dube City and incorporates office, hospitality, entertainment and retail experiences. It sets the standard for a minimum 4-star green rating by the Green Building Council.

In setting out to achieve the maximum available green star rating, the area will boast pedestrian-friendly zones, a tree-lined boulevard and dedicated cycle lanes, Persad said.

It will also incorporate multi-functional lawn spaces and a public square, while natural light will be fully utilised, with light sensors calculating the amount of light entering the space.

Heating, ventilation and cooling (HVAC) systems, which have carbon dioxide sensors to ensure that sufficient air is distributed through the office spaces, will be regulated through temperature sensors to reduce the amount of energy required, he added.

Photocopy machines would even have their own exhaust risers, extracting the harmful toxins and gases emitted.

In addition, rainwater will be collected and used.

“Waterless urinals will be installed and this will also reduce the amount of water consumed in the building,” Persad said.

With aerotropolis precincts already in Beijing, Amsterdam and Dallas, Dube City marks a move in the direction of a new trend that sees a shift in the concept of building cities around airports.

The job market is expected to benefit hugely.Dube TradePort told South Africa

Magazine that some 35,000 jobs would be created not only in KwaZulu-Natal, but throughout the country. END


iMAGE: CNdV africa



F I M A H A S I T

COVeReD

A major expansion programme will see South Africa’s biggest flexible

packaging brand, Fima, taking greater market share. Marketing manager

Megan Kronberger tells Colin Chinery about its customer-focused vision, and a strategic re-assessment to counter

competitive imports.

a complimentary after dinner mint, your favourite chocolate bar or a 25kg sack

of cement; the likelihood is the wrapping comes from Fima, South Africa’s leading name in flexible packaging.

Fima specialises in the production of Biaxially Oriented Polypropylene (BOPP) – and is South Africa’s sole producer, with a local production plant at its headquarters in Chamdor, Johannesburg.

BOPP is now a must-have packaging solution; its extensive benefi ts including unique combination properties such as stiffness, balanced shrinkage,

transparency, sealability, barrier, shine, and twist retention.

Applications include fl exible packaging, pressure sensitive tape, printing and lamination, stationery, metallising, fl ower sleeves, cable wrap and insulation.

As South Africa’s leader in fl exible packaging solutions, Fima develops innovative products for its customers and partners with a range of clear, white, matt and metalised products for packaging, labelling, and carton overwraps, as well as alternative packaging solutions. Fima’s fi lms are used for the packaging of snacks, chocolate bars, baked goods, confectionery, hygiene products, as well as wrap-around labels for the beverage market and carton overwraps for the tea and tobacco industry.

To meet rising plastic market demand, Fima has embarked on expansion plans

Fima FEATUrE


producer, with a local production plant at its headquarters in Chamdor, Johannesburg.

BOPP is now a must-have packaging solution; its extensive benefi ts including unique combination properties such as stiffness, balanced shrinkage,

transparency, sealability, barrier, shine, and twist retention.

Applications include fl exible packaging, pressure sensitive tape, printing and lamination, stationery, metallising, fl ower sleeves, cable wrap and insulation.

As South Africa’s leader in fl exible packaging solutions, Fima develops innovative products for its customers and partners with a range of clear, white, matt and metalised products for packaging, labelling, and carton overwraps, as well as alternative packaging solutions. Fima’s fi lms are used for the packaging of snacks, chocolate bars, baked goods, confectionery, hygiene products, as well as wrap-around labels for the beverage market and carton overwraps for the tea and tobacco industry.

To meet rising plastic market demand, Fima has embarked on expansion plans

COVeReD

As Fima Films expands to meet South Africa’s packaging needs, ANDRITZ is proud to be their technology partner.

Fima is South Africa’s leading flexible packaging producer, and the only pro-ducer of BOPP (biaxially oriented polypro-pylene) in the country. For its important expansion programme, Fima selected ANDRITZ Biax to deliver a new 8.7 m wide BOPP production line at its Chamdor plant.

ANDRITZ Biax supplies technology, plants, and on-going service for all types of biaxially stretched films to producers around the globe. Learn how you can benefit from the ANDRITZ Biax package.

Contact us today at [email protected].

ANDRITZ unwraps new BOPP line for Fima Films

Top service

and improved

technology by

ANDRITZ Biax

Worldwide relia

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www.andritz.com

that will see production at 31,000t of film at plate capacity per annum by 2013. Backed by the Industrial Development Corporation, and funded by local banks, it is pitched towards beating imports and creating jobs in the supply chain. Last month Fima confirmed an order for an 8.7 metre BOPP line, as well as an 8.7 metre Biaxially Oriented Polyethylene Terephthalate (BOPET) line with the Andritz Group - with a capacity to produce 31,000 and 25,000 tons respectively at its Chamdor plant.

“We are enthused that Fima’s new line will become a reality sooner than was originally expected. Our ultimate goal is to be able to meet the demands of the South African market, as well as export to other parts of the continent,” says Fima CEO Patrick Munyembate.

South Africa is seeing a big push to replace glass and paper with plastic products, and across Africa the growth of BOPP is estimated at 12 percent over the next 10 years. Environmental responsibility in

product usage is a Fima objective. “We currently have an Ambassadors programme made up of employees dedicated to customers and local community projects. Now we want to grow and extend this to share our knowledge and educate the local communities on the importance of recycling and not littering. ‘Plastic does not litter, people do!’ Although we are a long way from there, we are in discussions with the local municipality to work together to achieve this.”

For Fima, major expansion is a must-do strategy. With its current two lines producing 11,500 tons of BOPP film, it can serve only 30 percent of the South African market with locally produced film. The balance is met by imports, whose scale and cost are a constant challenge.

“However, we will always have the import challenge as they are cheaper and more so lately the challenge of printed BOPP for the local packaging market.

“Meantime we must ensure we give our customers the best product, price and service to also make them more competitive globally. Our challenge at the moment is focussing on 2013, and our short term strategy is one of satisfying our market by putting out products that they want to seed the local market.”

Part of the Treofan Group for over 25 years, a 2009 management buyout gave the local company financial control and Treofan SA re-launched as Fima. A year later a Black Economic Empowerment transaction saw Wendile Investment Holdings - a 100 percent black-owned company - as majority shareholder. The Treofan Group link remains close, with Fima having exclusive selling rights in Sub-Saharan Africa.

While Fima is currently producing only BOPP, it is also investing in a BOPET line – a polyester film made from stretched polyethylene terephthalate. BOPET is used for its high tensile strength, chemical and dimensional stability, transparency, reflectivity, has an aroma barrier properties and electrical insulation. “This is another flexible packaging solution we want to offer the packaging industry in South Africa and Africa,” says Kronberger.

Paradoxically, Fima’s current production ceiling has forced it to adopt an import strategy. “In order for us to gain more market share we have implemented a strategy where we import the ‘deficit’ of what we cannot produce to grow the market so when our line is ready in 2013 we are poised to supply the market with our additional capacity.


Fima FEATUrE

Importing products we cannot produce locally allows us to supply more of the market, and faster. We also aim to grow our exports market into Africa so we can supply the additional capacity, as we are currently supplying only Zimbabwe, Kenya and Mauritius.

“CEO Patrick Munyembate has a huge passion for the plastics market and is a great presence in the industry here in South Africa. Our vision is to give the market what it wants, work closely with our customers and give them a packaging solution at a reasonable price, tailored to their needs and requirements. As part of our objective of local people making local products we see ourselves growing out from South Africa into Africa. And if our customers will support local supply, we will create more jobs.

“We want to be seen not just as a supplier but as a partner, educating and advising our customers and industry about our products, their features and benefits. In the flexible packaging field we are the experts. So stick around and watch this space!” END


Goba is a name that seems to crop up in connection with almost every major project in South Africa. Craig Simmer, business development director of Goba (Pty) Limited, talks to South Africa Magazine about Goba’s momentous 2010 and plans for the future.By Ian Armitage

everydayT o U C H I n G

everyday L ast year was a momentous one for Goba (Pty) Limited. The independent, progressive South African consulting engineering

fi rm was involved in the development of no less than four of the World Cup stadia - the multiple award-winning Moses Mabidha Stadium; the Greenpoint Stadium; the Nelson Mandela Bay stadium; and the Mbombela Stadium. Goba was also involved in the preparation of transport operational plans for the World Cup event in Cape Town, Johannesburg and Mbombela, as well as a host of other projects.

“We offer multidisciplinary services packaged to meet each client’s project requirements,” says business development director of Goba, Craig Simmer. “We commit ourselves to working closely with clients, creating cost-effective solutions and enabling the acquisition of new quality assets.”

Goba is a name that seems to crop up in connection with almost every major project in South Africa, from mines and tunnels to transportation, roads, dams and pipelines and port development. Founded in 2001 through the merger of two established companies, Goba Moahloli & Associates and Keeve Steyn Incorporated, it has built up a unique reputation for professional integrity linked with the ability to deliver complex specialised projects effectively.

“We have worked on projects vital to national growth, such as the Berg River Dam that brings water to Cape Town, and the Gauteng Freeway Improvement Project (GFIP), and the widening and deepening of the entrance to the Port of Durban,” Simmer says. “In addition, the company is part of a consortium that is managing the implementation of the Mokolo-Crocodile and VRESAP pipelines and pump stations - major bulk water supply projects required to drive industrial growth in Lepalale and Mpumulanga respectively.”

Goba (Pty) Limited FEATUrE




“We see a lot of future growth coming from within the Transport Division,” Simmer explains.

With over 35 years of experience, the objective of the Goba Transportation Division has been to provide clients with work and advice of the highest quality that adds value to projects. This has resulted in this Division being acknowledged as one of the best in the fi eld, Simmer says.

“We also do a lot of work on mine surface infrastructure on things like materials handling, haul roads, water and power reticulation, polluted water dams and control systems, as well as the offi ces, workshops and buildings on the surface,” he adds. “That is a big part of our business also, as is Water.”

Goba is linked up with the likes of Sasol, working in a joint venture with RSV Enco, for instance, providing EPCM services for the multi-billion rand Thubelisha and

Most of the fi rm’s turnover comes from the Transportation Division, the largest of Goba’s four divisions, he adds.

“Our four divisions are Transport, Mining and Industrial, Water and Structures and Bridges,” Simmer explains. “On the Transport side, we have been involved in several multi-billion rand projects throughout the country, including, as I said, the Gauteng Freeway Improvement Project, a R30 billion project, which saw a major upgrading of the main freeway network in Gauteng and the introduction of electronic toll collection in the country.”

Goba, he says, is also at the forefront of the national initiative to restructure public transport services within South Africa and is involved in the planning and operation design of integrated rapid public transport networks in three of the fi ve major metropolitan areas in the country, including Johannesburg’s Rea Vaya.

UNIPLAS PRODUCTS

Uniplas Products cc is a young black owned company based in Johannesburg, Gauteng. As part of Goba Mining’s commitment to local procurement and enterprise development Uniplas was engaged to provide procurement and commercial services for two of their Coal Mine Projects in Secunda. Over the past three years Uniplas has established a great working relationship with Goba and I can proudly say that Goba have shown exceptional commitment and support throughout this time. I do believe that successful and sustainable partnerships are the key to sustainable development.

Thank you Goba!

Our ambition is to deliver real value for our clients, like Goba. And we know that value means different things to different people. That is why we will work with you to understand what’s important to help keep you a step ahead of the competition. To find out how we can work with you visit: www.pwc.com/za

©2011. PricewaterhouseCoopers (“PwC”), the South African firm. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers in South Africa, which is a member firm of PricewaterhouseCoopers International Limited (PwCIL), each member firm of which is a separate legal entity and does not act as an agent of PwCIL. (11-09584)

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Uniplas core business is to provide a good, quality support service to the

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This service includes: Planning, Procurement, Contract Administration,

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UNIPLAS PRODUCTS

Impumelelo mines. But growth really is everywhere. “I’m sure Goba will continue to expand. We expect the government to continue to put funds into infrastructure. There are a number of big projects we have our eyes on,” Simmer says.

Goba, he continues, has embarked on an aggressive growth strategy designed to increase the range and detail of the services it offers clients. The multi-faceted strategy allows for organic growth, he says. “The strategy also allows for targeted acquisitions and mergers with companies that are entirely in tune with Goba’s current service offerings as well as the overall strategy.

“We have recently acquired consulting engineers and development managers, Crosswell Engineers, who have been in existence for a number of years and have successfully undertaken numerous projects in the civil infrastructure, electrical and commercial development sectors.”

As well as business development, Simmer is responsible for overseeing Goba’s excellent mentorship programme, set up to assist graduates towards obtaining professional registration. “It is aimed at retaining and training new talent,” he says. “It shows our commitment to investing in the future of the company by mentoring young blood.



THE TRAVEL LINKThe Travel Link was established on 01 June 2000 with a vision of catering to the ever growing needs and expectations of today’s traveller, by bringing a higher level of personal service to both the corporate and leisure traveller. We are a boutique agency with world class client service standards and our team provides customised and personalised travel solutions. The Travel Link is committed to being a truly South African company that contributes to the economy and empowerment through skills development. We value diversity as a key business imperative as demonstrated in our diverse team.

We are proud to be the preferred travel management provider for Goba, and wish them well for all future ventures.

I’m sure Goba will

continue to expand

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At The Travel Link we provide higher levels of service by listening, understanding and paying

attention to the specific needs and expectations of our corporate and leisure clients, and then buying the

right product at the right price.

“We’ve had mentoring programmes for many years however they have been applied on a less formal basis. It is all now a lot more formal and mentorship committees have been set up in every regional office and they work closely with an external mentor. The programme is supported by senior management and we think the success of the programme speaks for itself - a number of professionals gained registration from this.”

The South African market is competitive; many of the large infrastructure projects are yet to gain momentum. In response, most of the major players are creating new integrated services offerings or expanding overseas to increase market opportunities. Indeed, South African construction companies are looking to the rest of Africa for growth and opportunities, Simmer says, and Goba is no different.

“The business has been performing

surprisingly well,” he explains. “It is resilient.“We had a bit of a hangover from the

World Cup, with slow pickup with new projects, and because there has been a bit of overspend within the municipalities there have been a lot of cutbacks. But we have managed to retain market share and we are remaining profitable where other companies aren’t.

“We are willing to move into new markets, for example gaining greater exposure in Sub Saharan Africa, and are evolving our value proposition, as I said before.

“One of the growth areas going forward is public transport almost certainly and most of the State Owned Entities such as Transnet and Eskom have substantial build out programmes and are major opportunities,” Simmer says. “We are looking at new geographic areas, with Sub Saharan Africa a major focus. At this stage we are targeting around 10-15 percent of our business to come out of those countries,” he concludes. END

When you step inside the Boardwalk Casino and

Entertainment World you should be prepared to be thrilled! Located in Port Elizabeth, and next to the Nelson Mandela Bay beachfront, its close proximity to many beachfront hotels makes it a haven for locals and visitors alike.

The Boardwalk’s general manager Clifford Ngakane (CN), who has been with parent company Sun International group for 22 years now, tells South Africa Magazine (SA Mag) more about recent successes, how things are about to get better, and why you should visit…

SA Mag: Clifford, how are you doing? it’s great to meeting you… First off, we wanted to learn more today about the hotel and casino. What does consist of? What defines it? And what are its hallmarks?CN: Hi, and great to meet you also... Well, the Boardwalk Casino and Entertainment World is currently the most popular leisure attraction in Port Elizabeth, second only as a destination to the beautiful beaches of Nelson Mandela Bay, which the property overlooks. To date, the complex has drawn more than 30 million visitors.


South Africa Magazine chats with Clifford ngakane, general manager of The Boardwalk Casino and Entertainment World, who tells us more about port Elizabeth’s most popular leisure

destination in this unique Q&A.

QQ&Q&Q a&a& W I T H T H E B o A r D W A L K ’ S C L I F F o r D n G A K A n E

SA Mag: So what’s new?CN: In October 2010, Sun International announced that it will invest R1 billion in a comprehensive upgrade of the property, which will further entrench its positioning as the destination of choice in the region. The high standard the Boardwalk currently sets, as a fun entertainment destination for the whole family, will be enhanced even further by the improved facilities. Extra space inside the Casino complex and at the retail area, coupled with world-class gaming technology and the latest in decor and hospitality trends, will give the property a fresh and exciting new look.

SA Mag: What will change then?CN: While Boardwalk has always provided a premium mix of entertainment options for the customer, the upgrade will take this one step further, thus maintaining its status as the most visited leisure destination for both the residents of Port Elizabeth and visitors to the city.

From high quality shows to fi rst-ever-seen casino games, family entertainment, luxury relaxation, must-see attractions, and now world-class business and conferencing facilities, the new Boardwalk will truly provide something for everyone, not only in the Port Elizabeth region but further afi eld too. This is part of Sun International’s consistent promise to bring the best mix of offerings available to its South African customers.

SA Mag: Part of the R1 billion expansion includes building a new convention centre. Tell us more about that… CN: Yes, the entirely new luxurious 5-star hotel and multi-purpose convention centre will attract both business and leisure tourists to Port Elizabeth, to the benefi t of all residents in the city. Not only will the increased number of visitors to the city have a ripple effect on other businesses, but locals will also be able to enjoy these new facilities, which offer superb luxuries such as a health and fi tness centre, spa and restaurant and bar with sweeping views of the ocean.

Overall, the enhanced and improved facilities will offer all customers and visitors an even better and even bigger Boardwalk than they already enjoy.

Construction is now well underway and is due for completion by December 2012.

SA Mag: Away from the exciting expansion, and looking more generally at the business, how do you think The Boardwalk is performing? Has this been a good year?CN: A positive trading environment and a solid performance from The Boardwalk enabled

the property to raise its EBITDA 14 percent by February 2011, ahead of the previous year *. In further positive news, the Eastern Cape Gambling and Betting Board (ECGBB) awarded The Boardwalk with a 15-year exclusivity license in October 2010.

With new employment opportunities provided by the new hotel, health spa and fi tness centre, multi-purpose convention centre, larger casino fl oor area, as well as signifi cantly expanded retail area providing space for new shops, restaurants and other concessionaires and service providers, The Boardwalk Casino will provide more than 3,500 direct jobs in the local economy when we reach a fully operational phase in 2013. In the current economic climate this is an achievement we can be proud of, and we are grateful that we will be able to have a real impact on the severe shortage of jobs in the Eastern Cape. * Sun International interim results February 2011

The Boardwalk Casino FEATUrE


SA Mag: That’s brilliant! Okay, so with your thoughts on the future, please tell us about the business and future goals? Have you identifi ed a clear market strategy? CN: Thousands of additional business and leisure tourists are expected to include Nelson Mandela Bay in their travel itinerary from 2013, when the expansion project is complete. The ideally sized conference centre and new hotel will appeal to many event organisers and conference planners. Out-of-town visitors will be attracted by big name shows and events that the conference centre will be able to host, for the fi rst time.

The expansion programme is being backed by a comprehensive marketing plan that will not only see the new conferencing, casino and entertainment complex being promoted locally, but also in key European, American and Asian markets through Sun International’s global marketing network.

We will market the complex as a bouquet of unique, must-see offerings. This includes the combined offering of The Boardwalk’s strategic gateway to the Eastern Cape and the Garden Route, access to world-class exhibition and convention facilities, accommodation to suit all pockets, and fi rst class entertainment for the whole family.

SA Mag: All sounds very promising…CN: It is and we are very excited. When complete, our new convention centre, for instance, will offer the best entertainment venue capable of meeting the requirements of international bands, musicians and other acts. This in turn will allow Port Elizabeth to become part of Sun International’s touring circuit for major acts.

The Boardwalk has already become synonymous with key events on the Nelson Mandela Bay calendar through the participation, sponsorship and promotion of events that have become signifi cant tourism attractors to the region in their own right. These include the increasingly popular

Boardwalk birthday festival month in October, the Metro’s Summer Season over Christmas, and the annual Splash Festival in Easter, all of which have the potential to attract visitors from around the country and the world.

The Boardwalk also plans to initiate major new ‘must-see, must-do’ events to draw additional tourism to the region. These will further enhance the international appeal of the new-look Boardwalk, and will be important when the property is marketed internationally alongside other major attractions by Sun International’s marketing offi ces around the world.

Sun International’s marketing team has played a key role in positioning the company’s various properties internationally. With the addition of 5-star accommodation and a technologically advanced conference facility, this should make the Boardwalk an attractive new option for foreign visitors. The property will also be featured prominently at Sun International’s stands at all major exhibitions.

Clifford thanks for answering our questions; we look forward to visiting the new facilities when they are completed toward the end of next year! END


The Boardwalk Casino FEATUrE

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A p p L E T I S E r

sleek and

health, bubble

Appletiser is a South African mother earth

natural, a success story with a

global presence, effervescing growth

and profitability. And, MD Francois rozon tells South Africa Magazine, a new packaging

and marketing breakthrough could double its size over the next two years.

By Colin Chinery

F orty fi ve years after pioneer fruit grower Edmond Lombardi created

a unique apple drink in the Western Cape, the bubbles still rise, high, sparkling and clear, keeping Appletiser, the company that he founded, at the top of the refreshment and lifestyle market.

With three products each lightly carbonated, 100 percent pure fruit and free of additives - Appletiser, Grapetiser and Peartiser - the Elgin Valley brand has a R1 billion annual turnover.

Over the last decade revenue has tripled and profits quadrupled, a highly palatable return. Unsurprisingly South Africa is the biggest market. But almost 50 percent of production and turnover accounts from sales across 30 countries – 15 of them key - with Britain the biggest, and Australia, growing at 30 percent in each of the last five years, moving up fast in second

Appletiser FEATUrE


place.MD Francois Rozon

cites typical accolades from consumers fresh to his drinks:’ By far the best tasting fruit juice I’ve ever come across, ’ more than a fruit juice’, ‘wonderful aromas’ ‘authentic fl avour’, ‘superb taste.’

“In a nutshell it’s the quality of the products, from the crystal clear transparency of the liquid, the champagne golden colour and fine bubbles, all the way to the packaging and the way it looks. The aroma - which in the case of Appletiser hasn’t changed over the past 45 years – makes for delicious fruit refreshment, something we are very

We are a 100 percent pure

sparkling single fruit juice, and this makes us something special

and pretty unique

proud of. We are a 100 percent pure sparkling single fruit juice, and this makes us something special and pretty unique out there in the market place.”

Competition comes from across a diverse market, including flavoured waters, diet soft drinks and even iced teas. “It’s a large competitive set and the consumer can make a choice from a broad portfolio of brands,” says Rozon.

Appletiser market ascent has been achieved through principally its super premium offering, with its glass pack highly effective in meeting special occasion needs, as well as the hotel, café, and restaurant trade. But Appletiser has identified a market area where, says Rozon, “we haven’t really been playing.” This is the sweetspot – chiefly grocery and convenience – populated by bottles made of PET, recyclable polyethylene. “As a result we have developed a plastic bottle solution for Appletiser and our other flavours which we have just launched in South Africa, and will be in the UK and Europe early in the New Year.

“It’s been a long process of overcoming a lot of difficult technical issues, and now we have the opportunity to potentially double in size again over the next two or three years. We shall be bringing to market firstly a single serve 350ml PET pack, which we call the daily edition, since you can take it along pretty much anywhere in your lunchbox or handbag. Also a 1.25litre pack, which we describe as our weekend pack perfect for sharing at home with family and friends. This brings accessibility and affordability to consumers at a time of relatively difficult economic conditions.

“So roughly for the same price of a traditional, special occasion 750ml glass bottle, we will be able to offer 66 percent more volume. It’s a breakthrough, allowing us to be far more competitive and play more as a premium soft drink than we have


Appletiser FEATUrE

traditionally have been. So all in all, great progress and an exciting two or three years ahead of us.”

Current challenges and growth considerations says Rozon include the ability to scale the business in countries that have not reached critical mass - most of the large overseas markets have local production – Appletiser shipping the flavour and aroma base. And with local blending of apple juice concentrate, water and Co2. “This requires having the right partner and the right investment behind the brand. Another challenge is to constantly look at the capabilities we have, and build upon them to keep up with growth to achieve our full potential.”

He agrees there has been a powerful re-appraisal among consumers. “In South Africa as elsewhere where we trade, the shopper has become a lot more discerning, especially following the recession we have just gone through. So we need to be able to offer a premium product, and make consumers understand the value we bring to them. That’s a key challenge for us”

Meantime the typical South African consumer, like those elsewhere, is faced with a personal challenge and potential life-killer: over weight and obesity. Sixty one percent of the population is affected, a figure that reaches 72 percent in Cape Town. Seventeen percent of urban domiciled one to nine year olds are obese, and the Heart and Stroke Foundation, concerned at the expanding waistlines of young South Africans, is asking retailers to stop enticing children into unhealthy eating habits.

“I’ve always been a proponent of a balanced diet, and the great thing about our products is that they have a low glycemic index – GI - which means longer lasting energy to help us through the day. In Britain we have been part of the Government’s Five a Day initiative, and for a long time we were the only soft drink or sparkling beverage allowed in schools. Here in South Africa the Five a Day is not a Government programme but is industry-driven, an initiative which we are a part of.

“Over weight and obesity is becoming a serious problem in South Africa and new findings are helping people realise that we have to do something about it. We believe Appletiser provides a good healthy alternative to a lot of products out there that don’t have the same integrity and vitality. If there’s a message to be sent I would say, Live a full life, a balanced life, and as


We believe Appletiser provides a

good healthy alternative to a lot of

products out there

a healthy alternative to traditional soft drinks make Appletiser part of your beverage repertoire.”

Appletiser’s business philosophy says Rozon can be summarised “as a small enterprise that tries to be true to the integrity of its product, its brand, and where we try to be the best at what we do, putting the consumer at the centre of our values.”

Edmond Lombardi died 29 years ago aged 84. By the time he retired he had successfully transformed his 493 hectare farm some 70 km southeast of Cape Town, into a community of employees, striving

for the fulfi lment of their ambitions in the process of maximising the production of top quality apples, pears and plums.

And on his death the pioneer grower and philanthropist created the EJ Lombardi Trust which today continues the work he began, notably in raising the living standards of the Western Cape labouring population.

“This legacy and involvement is central to our existence and being,” says Rozon. “We are part of the small community of the Elgin Valley, and our aspiration is to contribute, whether


Appletiser FEATUrE

in terms of economic development or educational programmes, whether for pre-school, High School learners, for our employees, or supporting the Empowerment initiative in the community.

“We want to make an impact and be something of an activist in working with others in making this valley, in terms of sustainable farming and water use, one of the fi rst ‘Green Valleys’ in South Africa if not in the world. And that’s exciting. It’s one of the things we do in the background, but we do it because we believe in it. It’s our home and it’s where we come from.” END

Unique in appearance, authentic in design and renowned consistency makes Fontana the leader in supply of closures to the Beverage Industry.

Fontana continues to meet its commitments and obligations to sustainability by being able to offer various biodegradable closures and preforms from mid-2011. All products made from biodegradable polymer will biodegrade in an anaerobic (landfill) environment, breaking down through microbial action within the landfill, into biogases and inhurt humus, leaving behind no harmful materials. As recycling has always been Fontana’s top priority, one needs to take note that only 26% of all PET bottles are recycled. For this reason, Fontana believes that in order to contribute more positively to its environmental commitments, an alternative to recycling should be offered. The biodegradable Fontana Closures are an alternative.

www.fontana.co.za

FONTANA

The idea of producing natural products has been with Elso Holdings since its very beginning. At the time of its founding in 1956, the elephant population in Etosha National Park was out of control and posed a threat to the park itself. After a cull to solve this problem, the elephant meat was sold, while the fat was bought up by a Mr Elmar, who then used it to produce bars of blue soap, which he stamped with the emblem of an elephant. Some 42 years later, Elephant Soap Company became ELSO Holdings and it still uses the image of an elephant as its logo.


With over 50 years experience producing eco-friendly cleaning goods in namibia, Elso Holdings is ready to replicate that success all over southern Africa, South Africa Magazine reports.By Jane McCallion

C L E A nC L E A n

W indhoek-based cleaning products manufacturer Elso Holdings

is the premier provider of ecologically sound, guaranteed non-toxic products in the Namibia. Its current owners Mr and Mrs Rusch acquired the company in 1998, however it has been in existence for over 50 years. Today it manufactures cleaning liquids and powders, paper and cleaning equipment, which it supplies primarily to wholesalers and retail, guesthouses and businesses.

Since the company was taken over in 1998, the main focus for investment has been in new machinery. As Mr Rusch explains, this is something that is taking place on a continuing basis. “When we acquired the business, everything was made by hand. However since then the company has experienced rapid growth – far beyond even our expectations. Consequently, we have brought in new machinery that has allowed us to both speed up production and increase volumes, allowing us to cater for bigger markets. Additionally, these machines allow us to introduce different product sizes into our ranges.” Responsiveness to customer demand is particularly important with regard to the retail sector. “If you cannot produce the quality and quantity for these organisations at the speed they demand, they are simply not interested in doing business with you. With retail forming a major part of our customer base, it has been imperative for us to purchase these machines. Of course we

are then able to apply these benefits to our other customers too.” Over the past 13 years, Elso Holdings has invested R5 million in new machinery and intends to invest a further R6 million over the coming five.

Elso Holdings’ client base is very diverse, covering virtually all industry sectors. “In terms of retail, we sell to all the chains in the country, including Pick and Pay and Shoprite. Along with hotels, hostels and guesthouses, these two sectors are our major sources

of revenue and so our major sales focus. However, we also supply to businesses, which in fact account for 23 percent of our sales of paper products, factories, restaurants, the government and so on. So it is quite a mix.”

The organisation has very strong roots in Namibia and in eco-friendly ethics of which it is very proud. It is these factors that Mr Rusch believes sets the company apart from many of its competitors in the region. “The most important thing for us is that we are a Namibian company, not South African like many of our competitors. Local people fabricate everything we sell, nothing is imported, and we are not answerable to a team of chemists sent in from abroad to check on our work. Secondly, we are very concentrated on biodegradability in our products, which preserves our

heritage as a business and helps to conserve our local natural environment. These two ideas come together in our company motto ‘for a better life’, which we have incorporated into our logo. By this we mean that through our products and our manner of business, we want to provide a better life for the future of the people of Namibia and of Africa.”

This commitment to localism does come at a price, however, and there are a number of challenges for Elso Holdings to overcome. “Probably the biggest problem we face is the lack of skilled labour in the local work force,” says Rusch. “However, we have

Elso Holdings FEATUrE


Local people fabricate

everything we sell, nothing is

imported


Elso Holdings FEATUrE

per annum. “Our expansion project will begin next year, when we will target Zambia,” says Rusch. “From there we will gradually move into the rest of the countries and finally end in South Africa. The reason for this is that South Africa already has a large market with many established brands, so it is better to establish ourselves in the rest of southern Africa before entering the most competitive market.” The business will also establish small regional offices in the capital of each country to aid with customer relations with each of the national markets. However, through expansion it will not be losing its Namibian roots and heritage: Head office will still be in Windhoek and it will remain the manufacturing base, with goods being exported to the various countries. All goods will, of course, still be guaranteed biodegradable and non-toxic too.

Being heritage focused is not a policy that always works in business, yet it is the key to Elso Holdings’ success, not least because its heritage was so far ahead of its time. Localism and environmentalism are things that we think of as new, yet they have been at the centre of this company for half a century. Far from being stuck in the past, the management are using the history of the business as a stepping-stone for further success, helped by the fact that these values are so important today. Without a doubt, this philosophy will also bring them even greater future results both at home and abroad. END

decided to take a proactive approach to this and solve the issue ourselves through training. We are currently in the process of getting an education programme underway within our business. This will give basic skills training, including reading, writing and speaking English; this really is the first base for us, because some of the people cannot speak or understand English very well. Once we have that in hand, we can go forward.” The second major challenge, he says, is lack of government support. “In Namibia the manufacturing sector is really under pressure, as we don’t have the sort of support or incentives that are available to South African companies, for example.”

Having secured its position as a leading manufacturer of cleaning goods, Elso Holdings has decided to take its success abroad. Over the next 10 years, it plans to be present in all eight countries in Southern Africa. Once completed, total sales for the company will exceed US$100 million and the growth rate in sales will be between 20 and 25 percent

Nampak Tissue is a leading supplier of tissue, fluff & related household products in South Africa. The industrial division distributes Twinsaver Away-from-Home toilet paper, tissues, towels, wipes, soaps & dispensers to the commercial sector. Our commitment to providing best practice solutions & the highest quality standards, puts us in good stead to guide & assist those looking for comprehensive washroom solutions.

Industry leaders in the commercial, healthcare & hospitality sectors rely on Nampak Tissue for advice, service and product delivery. And with a national footprint, many years experience and a wide range of products, you can count on us for the personal touch.

PersonalTouch

For more information, please contact the Away from Home team on

011-7997232 (tel), 011-7997296 (fax)or visit www.nampak.com/afh

Best advice, service & product deliveryNampak Tissue is a leading supplier of tissue,

PersonalTouch

Best advice, service & product delivery

NAMPAK TISSUENampak Tissue have had a strong working relationship with Elso Holdings since their formative days. Elso Holdings and Nampak Tissues business relationship operates on two fronts.

Firstly as a conversion partner on our jumbo tissue side, manufacturing our locally discontinued range on behalf of our client base in Namibia, and in later years on our Away From Home product range.

Elso Holdings wide base of representation in Namibia has afforded us the opportunity to expand our “Twinsaver” range to all corners on Namibia as well as being a springboard to the North.

Elso Holdings professional approach to operations, product, quality and management mirrors that of Nampak Tissue.


Following some recent and big contract awards like Dipula and Mergence Africa, property services company JHI is eyeing further expansion, says Johann Boshoff, property

management director. Is the property management market showing signs of recovery?

By Ian Armitage

s i g n u p J H i

D I p U L A A n D M E r G E n C E A F r I C A p r o p E r T y F U n D S

“With a gamut of tools at our disposal, our services include property management, retail management, broker services, property development and redevelopment, as well as marketing of property developments, facilities and project management, maintenance planning, research and consulting, valuations and tenant representation service,” he explains.

In a significant contract win, JHI was recently awarded the management contracts for the property portfolios of Dipula Property Fund and Mergence Africa Property Fund (funds we profiled back in issue 13).

Dipula has 91 buildings with a capital value of R773 million, and Mergence Africa has 51 buildings, with a capital value of R597 million. Both portfolios include commercial, retail and industrial properties in most major cities around South Africa.

The Dipula Property Fund was established in 2006 and is co-owned by Redefine Property Fund and the black-owned and managed Dijalo Property Services, which is headed by Saul Gumede. Mergence Africa Property Fund is similarly co-owned by Redefine and the black-owned and managed Mergence Africa Properties. Mergence Africa Holdings operates in the property and financial sectors and was formed in 2004 by Izak Petersen and Masimo-a-Badimo Magerman.

Boshoff says JHI was invited to tender for these two contracts along with two other companies.

“JHI was invited to tender and based on our track record as a reputable

T he past year has been extremely positive for property services company JHI, which has seen signs of recovery in several sectors.

Finance Minister Pravin Gordhan says the South African economy has moved out of recession, but the recovery has been mixed, uneven. Property Management companies have been reporting varied results.

“2010 and 2011 have been good years for JHI with strong growth in our property and retail management client base, as well as growth of existing clients’ property portfolios,” says JHI property management director Johann Boshoff. “JHI currently manages approximately R45 billion in property assets, which reflects an increase of 25 percent in the value of properties managed in 2008/9. We are also experiencing a marked increase in facility management, development management and valuations activities.”

JHI is an independent property services company with specialised skills and over a century of experience.

It currently manages some 1,550 buildings, comprising eight million square metres, and over 14,000 tenants.

The Gauteng-based firm operates in all major centres in South Africa and has a presence in Namibia, Mozambique, Zambia, Botswana, Lesotho, Zimbabwe and Ghana. It strives to be a “key property partner” in Africa, Boshoff says. Plans are well under way to open in Kenya later this year.

JHI FEATUrE


JHI currently manages

approximately r45 billion in property

assets

property management company, our national footprint and property management model, which covers a broad spectrum of services over and above the norm, we were awarded the management contracts for the property portfolios of Dipula and Mergence,” he says.

Despite the outstanding performance of 2010 and, so far, 2011, as well as contract wins like this, there are causes for concern.

Extreme weather, political protests, financial upheavals and declining job opportunities across Europe and the US have increased the possibility of a double-dip recession, according to economists, and interest rate rises are likely – a fact not lost on Boshoff.

“That is a challenge,” he admits. “An economic slow recovery in South Africa, exacerbated by the fact that globally we appear to be headed for a double-dip recession and the possibility of rising interest rates due to inflationary pressures, is a major worry. This is coupled with a market contending with ongoing, restrained access to finance, and consumers/marketplace

beset by increased municipal rates, rising fuel and electricity costs, among others, and in Gauteng impending toll fees, which will impact negatively on the business sector. In addition, we believe that a lack of resources such as energy and water will see ‘Green’ living become a priority for all - with an associated cost factor - which in turn presents an opportunity for JHI.

“Other opportunities include socio-economic development, including infrastructural improvements, an emerging market focus, with increased prominence of Africa as an investment option and environmentally friendly/sustainable development, plus opportunities to capitalise on new technology and practices,” Boshoff adds. “There are opportunities for investors investing in commercial property at today’s low base levels, with the potential for significant growth in values in the medium- to long-term.”

He says JHI is “exploring every opportunity” to expand its footprint into Africa based on annuity income generating


JHI FEATUrE

[email protected]

assignments. It is also striving to offer existing and potential clients a “one-stop” service with a comprehensive and quality driven offering to cater for all their property related needs.

He sees Zimbabwe too, a market where JHI has been expanding, as a strategically important.

“We see Zimbabwe as an emerging nation poised for fast turnaround growth,” Boshoff says. “JHI has always viewed Zimbabwe as a country with huge potential and the ability to change rapidly, and despite the current problems experienced there, we believe it can become a sought after business destination not only for South Africa but also for the rest of the continent and the global market.

“With no proper credit system in place and purchases made on a cash basis, the credit crunch has hardly affected these countries, as is the case with Africa in general – apart from South Africa,” he continues. “And the fact that the US Dollar is the common or base currency in use – in addition to their own local currencies – adds appeal for investors. This is borne out by the success of supermarket chains such as Shoprite and Game, as well as mobile phone operators and business hotels. Such expansion through Africa and increased trading continues to boost the local economies of these countries, while providing new jobs and catering for an emerging middle-class. It is positive to note that increasingly, forward-thinking governments in Africa are encouraging foreign direct investment and opening up trade with the rest of the economies in the region.”

With the recent conversion of Zimbabwe’s monetary system to US Dollar, JHI is “seeing a strong trend among the country’s local developers and fund managers to begin exploring ways of catching up with the international property markets,” Boshoff says.

JHI entered the Zimbabwean property services market with the acquisition of East African Properties, a company with an existing property management portfolio comprising 48 properties, which are a mix of industrial and retail.

These managed assets represent a total capital value in excess of US$40 million, spread across Zimbabwe, but with a concentration in the commercial hub of Harare.

JHI also plans on opening its doors in Kenya towards the latter part of this year.

In Ghana, JHI is soon to commence management of the Marina Mall in the Airport City area of Accra. END


JHI FEATUrE

www.theworkshopcentre.co.za

www.theworkshopcentre.co.za

www.greenstonemall.co.za

We are privileged to be selected by JHI to tender and execute works for more than 25

years. Certainly the best organised and managed property consultants in South Africa.

We salute JHI, keep up the good work and thanks.

Proud to be associated with JHI

Contact: Stephen Ayerst: email: [email protected]


Group 4 Securicor (G4S) namibia’s managing director Dries Kannemeyer talks to South Africa Magazine.By Colin Chinery

securingy o U r W o r L D

g 4S Namibia is the leading provider of security solutions in a country celebrating 21 years of independence. Part

of G4S, the world’s leading international security solutions group and one of the largest private employers in the world, its programme of integrated solutions ranges from risk assessment to delivery, working in partnership with governments, businesses and other organisations.

“In our fi eld there’s only one company, and that’s G4S Namibia,” says managing director Dries Kannemeyer. “We pride ourselves in maintaining exceptional service levels with highly trained staff, serving our clients 24/7.”

Operational areas include alarm monitoring and armed response, manned security, electronic security and surveillance, valuables in transit, installation and maintenance of intruder detection systems, and secure vaulting and storage facilities.

There are an estimated 12,000 to 15,000 security personnel in Namibia, and with 2,000 trained operatives, and with branches in Windhoek, Walvis Bay, Swakopmund, Rosh Pinah and Oshakati, G4S is the country’s largest security company. Its origins reach back to 1994 as South African-based Gray Security Services. In 2001 it was bought by Securicor and three years later following a merger it became Group 4 Securicor.

“G4S Namibia was still a very small company with a focus on guarding and manned security, but then we acquired an alarm, monitoring and response company 2006 and in 2007 a cash services business,” Kannemeyer says. Further acquisitions followed in the Walvis Bay area, and at Namibia’s leading holiday resort, Swakopmund.

With a population of just two million, a less urbanised society, and stricter government enforcement of laws, crime rates are proportionately lower in Namibia than in South Africa. “There’s a good relationship between the public and the Namibian police and if there is a violent crime I can assure you that within a week the culprit will have been brought to the courts. One of our biggest problems in Namibia is petty theft and breaking into homes and businesses. In the capital

Windhoek our company has an excellent relationship with the city police, and most businesses in Namibia are connected to G4S alarm systems, with a minimum reaction time of four minutes,” says Kannemeyer.

What aside from its size makes G4S Namibia distinctive? “We adhere 100 percent to the Labour Act

G4S Namibia FEATUrE


We pride ourselves in maintaining exceptional

service levels with

highly trained staff

covering areas such as basic conditions of employment, wage agreements, health and safety, contracts, and trade union and employer recognition and we are a very transparent company, doing what we say we are doing, and responding immediately on any issue.

“We have a management in place that gives our clients the very best service. Our staff are smartly dressed, our vehicles clean, neatly branded and immaculate, and we have an excellent relationship with our clients, keeping them up to date with the latest technology. We are like a One Stop Shop Centre - you can get manned guarding, cash in transit, alarm monitoring and response, vehicle tracking and surveillance. We have a state of the art control room and I don’t think there’s a better one in Namibia.”

Reference to the Namibian Labour Act, compliance is revealing. ”As things stand, unfortunately anybody can come in and start up a security company in Namibia,” Kannemeyer says. “There is a Security Act but regrettably we do not have an active Security Board to regulate it. We are trying hard to get it up and running, but at this stage we do our own screening to ensure adherence to at least minimum standards.

“One of our biggest challenges is the standard of people entering the security industry. It is currently one of the lowest paying sectors, and while as a member of the Security Association of Namibia we have established a minimum wage, a lot of companies are not adhering to it, and it must be said the policing of it is very weak.

“The training standard of people coming into the security industry is also very low, and this is why we undertake our own training,

based on the South African training requirements from the Private Security Industry Regulatory Authority – PSIRA - using their minimum standards to train our people. We also undertake our own armed response and management training.”

Staff advancement is another G4S commitment. “We believe in uplifting the living standards of our people, and as an example, we are the only security company providing its staff with a pension fund and medical care. We are also involved in programmes of


social responsibility and community care.”

Born in Namibia – then Pretoria-administered South West Africa – Kannemeyer, 53, spent 20 years in the South African Defence Force following conscription. He won a degree in Military Science at University of Stellenbosch and a Masters in Leadership at the University of South Africa. In 1996 he joined Gray Security in South Africa and transferred to Namibia as General Manager in 2002. Four

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years later he was appointed MD for what is now G4S Namibia.

He is currently overseeing a development programme that includes upgrading of facilities and operations such as better tracking systems, and a radical extension of cash and transit services - with the possibility of a ground-breaking cash centre that would relieve clients of all cash handling responsibilities.

With two major mining contracts – Skorpion Zinc in the south of the country, and the open-pit Rössing Uranium mine, ninety km north of Walvis Bay,” Kannemeyer says. “This produces over seven percent of the world’s uranium as uranium oxide (U3O8) and supplies nuclear-power utilities throughout the world. We are currently looking at a couple of new mines and at this stage the prospects are looking very very good.”

G4S already has contracts with the Namibian Government, he adds, and these are set to increase as “slowly but surely the

Government is becoming dissatisfied with the security services it’s getting.”

“Normally they go for the lowest tender and cheapest option but now they are starting looking for reputable companies. We already have contracts with semi-state companies including Air Namibia, and the National Port Authority (Namport) which manages the ports at Walvis Bay and Luderitz.

“Over the next two to three years I think there will be a couple of Government contracts coming our way. These would be substantial and have a very significant impact on our scale and growth. And further expansion is very important to us.

“If a client wants peace of mind he or she does not have to go further than turn to G4S. We offer them a One Stop service and I can assure you that the best service they can get is from us. In this country there is only one company, and that’s G4S Namibia.” END

C opperbelt Energy Corporation (CEC) is a privately owned company that operates and maintains a network comprising transmission, distribution and

generation assets and a control centre on Zambia’s Copperbelt. Its transmission and distribution network consists of 884 kilometres of overhead lines and 38 high voltage substations.

The current carrying capacity of the network is in excess 700MW, according to its website.

Listed on the Lusaka Stock Exchange, CEC is the sole distributor of electricity to the major mines on the Copperbelt in Zambia, as well as an electricity supplier to neighbouring Democratic Republic of Congo. In


CEC is expanding from a utility company that buys power to one which also generates its own power, a move that will help create several jobs and make Zambia’s power situation better.By Ian Armitage

S U C C E S SS U C C E S Sgenerating

November 2009, it became a full member of the Southern African Power Pool (SAPP) and is, therefore, well placed to serve mines throughout Southern Africa.

“We supply power to Konkola Copper Mines, Mopani Copper Mines, Chambishi Copper Mines, Chibuluma Copper Mines and NFC Africa Mining,” Aaron Botha, project director, tells South Africa Magazine, which visited Zambia as part of a special focus.

The Copperbelt company

currently buys electricity from the Zambia Electricity Supply Corporation (ZESCO), under a bulk supply agreement, he explains.

“Mining is defi nitely good for business, as far as CEC is concerned,” Botha adds.

However, there is a catch – and it’s a big one.Zambia, like all of southern Africa, is facing a power

defi cit, worsened by the increase in the number of mines and mining-related activities.

With demand projected to increase to 750-800MW by 2012, and with Zambia heading to a power defi cit, CEC is doing all it cane to address the high demand for power and is injecting more than $140 million into the Kabompo Gorge hydropower station which it expects to complete in 2015.

Copperbelt Energy Corporation FEATUrE


generating

Botha explains that there is a huge and long-term investment in hydropower generation.

“We are investing millions into the Kabompo Gorge project with actual construction expected to start next year. This is very important for Zambia because we are headed for a power deficit,” he says.

“CEC is fast positioning itself as a developer of energy infrastructure in Africa and is well respected in the region for its skills in designing and operating transmission systems. Our aim is to supply reliable energy and high quality services to meet our customers’ unique and changing needs efficiently and proactively,” Botha adds.

Zambia would mostly be hit by a power deficit in the next two years and the Kabompo project is vitally important to CEC, he says.

“The Kabompo Gorge Hydro Power Station is very important. A CEC led consortium was awarded the

project to undertake a feasibility study and development of that project in 2008. The feasibility is now complete and the project area is located between Solwezi and Mwinilunga at Kabompo Gorge on Kabompo River, in the North

Western Province of Zambia. The power station is expected to bring development opportunities to the districts around the project area and will connect into the main Zambian electricity grid through


Copperbelt Energy Corporation FEATUrE

CEC is fast positioning itself as a developer of energy

infrastructure in Africa

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Renewable energy plays a vital role when it comes to balancing the need for more power with minimum environmental impact. Addressing challenges like intermittent supply and often connecting remote locations, ABB has integrated more than 200 gigawatts of hydro, wind and solar power into the grid – enough electricity to serve the needs of nearly 70 million people. With a 125 year heritage of technology innovation ABB continues to shape the grid of the future. www.abb.com/betterworld


a transmission line to the nearest ZESCO substation at Lumwana.”

The Greenfield hydropower plant once completed is expected to generate about 40MW of power. It will have a large dam and reservoir covering approximately 35 square kilometres. Botha says the tendering process is expected to be undertaken this year with the view to commence construction works next year.

Because of the size of the project and the amount involved, the company would source most of the required money from development banks, he says.

“It is progressing well, but we are on a tight schedule,” Botha explains. “As well as the final feasibility study, which was issued by the consultant Amanzi (a consortium of Arcus Gibb, Knight Piesold and SSI), we have completed the Environmental and Social Impact Assessment and it has been approved by the Zambia Environmental Management Agency (formerly Environmental Council of Zambia). We’ve also signed a Letter of Understanding with the Chiefs in the affected

areas of North Western Province and have completed a request for Expressions of Interest from potential contractors through advertisement in the international media. A number of responses were received, from which a shortlist of five companies has been selected, who will be invited to submit a full bid. Final bids are expected to be received during the fourth quarter of 2011.”

It is expected that significant further progress will be made in developing the project during 2011 and 2012, he adds, with the selection of an Engineering, Procurement and Construction (EPC) contractor and project lenders, further development of project documentation and site preparation activities.

“CEC is expanding from a utility company that buys power to one that also generates its own power, a move that will help create several jobs and make the power situation better,” Botha concludes. “There is huge potential in this country for hydro power generation.” END


Water and Environmental Affairs Minister Edna Molewa is ringing the changes at the Department of Water Affairs, South

Africa Magazine learns. By robert Michaels

Water, water

E V E r y W H E r E

i n November 2010, Edna Molewa replaced Buyelwa Sonjica as Water

and Environmental Affairs Minister – the move was part President Jacob Zuma’s Cabinet reshuffl e, which was announced on 31 October 2010.

Molewa set to work immediately, aiming to “halt the disarray in the Department of Water Affairs” and coordinate

and monitor the provision of basic services such as water, electricity, refuse removal and sanitation.

On her first day as Minister, the Department of Water Affairs put its Chief Financial Officer, Onesmus Ayaya and the Deputy Director General for Corporate Services, who was also the Acting Director General, Nobubele Ngele on “precautionary suspension pending an

investigation into irregular procurement practices”.

In May 2010, the offi ce of the Auditor General completed an investigation and published a report in which certain offi cials including the two were implicated in several breaches of procurement procedures. In a separate investigation, the Public Service Commission is also fi nalising its process wherein the two

Department of Water Affairs FEATUrE


In South Africa, water demand is

expected to rise by 52 percent in the

next 30 years while the supply of water is sharply declining

individuals have also been implicated in further but separate allegations of procurement malpractice.

The department has been working hard since to restore its image as a service provider instead of a corrupt tender base.

And it is imperative it does. In South Africa, water demand is

expected to rise by 52 percent in the next 30 years while the supply of water is sharply declining. If current trends of leakage from aged and poorly maintained municipal infrastructure and the loss of wetlands persist, this growth in demand will intensify competition for water resources across all sectors of the economy (agriculture, energy industry and domestic). Should status quo in management practices remain, a gap of 17 percent between water demand and supply is forecast by 2030. This gap will have serious social and political implications and strongly impact South Africa’s plans for economic growth.

Tackling the issue of acid mine drainage and pollution of water resources in Gauteng province is another one of Molewa’s immediate priorities.

In her Budget Vote speech in June, Molewa chose to focus on the positives, explaining “In the water sector, when the government took offi ce in 1994, a mere 62 percent of households had access to clean drinking water, today that fi gure stands at an average of 93 percent. We are working hard to achieve a 100 percent and will work collaboratively with of local government to increase their capacity to deliver quality services to all South Africans. We are aware of the many rural communities who have in many instances been bypassed by our bulk infrastructure which we will attend to through better planning that will help us to close existing water services delivery gaps. We will also have to deal with the challenge of illegal water connections to our infrastructure.

“The water sector is a strategic catalyst for job creation and economic development,” she continued. “Virtually all strategic sectors that are drivers for the New Economic Growth Path depend in large measure on the availability of water as a resource, including Mining, Energy, Industrial and Agriculture. Our reconciliation studies of our capacity to meet our water needs tell a story of great

challenge in the management of water resources. We will have to respond to the challenge of water availability and provision for economic growth. These include the exploration of our groundwater reserves, desalination of sea water in coastal areas, recycle and reuse approaches, inter-basin transfers and the very important behavioural issue of water conservation. We cannot afford to waste water, anywhere, anytime in South Africa.”

The department, Molewa said, was working on developing an “integrated approach to water provision to ensure continuous supply from source to tap”, while refurbishing wastewater treatment infrastructure, enhancing water and waste water treatment skills through mandatory training, and strengthening the Blue and Green Drop Certifi cation programme, amongst other things. “In Mpumalanga, we will implement of the Mokolo and Crocodile River (West) water augmentation project, with a total cost of about R2 billion to deliver water to Eskom’s new Medupi power station


Department of Water Affairs FEATUrE

GOBA (PTY) LTDThe Goba Water Division’ s capabilityencompasses the full range of the hydrolicalcycle and all types of water relatedinfrastructure, recognising the immense valueof water as a key national resource. Hence,we constantly review methods of efficient andcost effective water use and managementsolutions across the full range of planning,design, implementation and commissioning.

We specialise in the following areas:

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Water and Sanitation Services

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EDNA MOLEWA: PROFiLE

Edna Molewa served as minister of social development since May 2009, and before that she was premier of North West province from 2004 to 2009.

A former teacher, Molewa began her political activism serving in the underground structures of African National Congress (ANC) between 1976 and 1990. She currently chairs the ANC Women’s League in North West.

Edna Molewa (centre)


and other industries in the area as well as domestic water to the Lephalale local municipality,” she explained, elaborating on many of the numerous ongoing projects. “We are constructing the Spring Grove Dam on the Mooi River in Kwa-Zulu Natal, costing R2.2 billion and investing R91 million to raise the Hazelmere Dam, to augment the water supply to Umgeni Water. In Limpopo, we will construct a water conveyance system from the Vaal Dam to Secunda to augment supply to Eskom power stations and Sasol. Added to this there are a number of other water projects around the country including the Water

Treatment Works and Bulk Distribution systems from Nandoni Dam in Limpopo; a pipeline from the Flag Boshielo Dam to Mokopane, feasibility studies and designs of the Umzinvubu and Foxwood Dams in Eastern Cape; the Bulk Distribution Pipelines and reticulation networks from the Jozini Dam in KZN; the Groot Letaba Augmentation project, consisting of the raising of the Tzaneen Dam; the finalisation of the plans of the construction of the N’wamitwa Dam and the associated Water Treatment Plants and Bulk Distribution pipelines.”

The Department of Water Affairs is the

custodian of South Africa’s water resources. It is primarily responsible for the formulation and implementation of policy governing this sector. It also has override responsibility for water services provided by local government.

While striving to ensure that all South Africans gain access to clean water and safe sanitation, the water sector also promotes effective and efficient water resources management to ensure sustainable economic and social development. To learn more visit www.dwa.gov.za. END


The rapid growth of Africa’s mining industry is to continue into the future,

says Mark Calderwood, managing director and CEo of Perseus Mining.

By Ian Armitage

g O L D e np E r S E U S ’

O p p O R T u n i T y

Perseus Mining FEATUrE


g old’s meteoric rise has been well documented.

The metal reached a price of US$1786.54 per ounce in early August and it is expected to rise further still, with the gold market feeding off Eurozone uncertainty and, to a certain degree, off ongoing fears of slowing in the US.

Gold is the quintessential hedge when there are worries about the economy and this represents a great opportunity for gold producing regions.

From 2005 to the end of 2010 there were approximately 15 new gold mines in West Africa alone, averaging 200,000 ounces per year.

Perth-based Perseus Mining is amongst those benefi ting from the commodity’s soaring rise and is well aware of the obvious opportunity that lies in gold production. Its lead project is the Central Ashanti Gold Project (CAGP), formerly known as Ayanfuri, in Ghana, where it is working towards being in production soon.

The CAGP comprises a group of large gold deposits located in the Ashanti gold belt.

“It represents a big opportunity for us,” managing director and CEO, Mark Calderwood, tells us. “A

major milestone was achieved on August 9, 2011 when the SAG mill commenced processing ore and first gold production is expected within a week, in line with expectations of first gold in the third quarter of 2011.

“It was a tremendous effort by all involved to bring this substantial project to fruition within 14 months of starting site works.

“The construction and operations teams put in a fantastic effort towards completing the project on schedule.”

Commissioning the process facility to name plate capacity and optimisation of gold recoveries is expected within three months.

“The mining ramp-up is progressing, and is on schedule for an average mining rate of 1,100,000 m3 per month. Approximately 4,200,000 m3 of material has been mined to date, including about 700,000 tonnes of ore,” Calderwood says.

ASX-listed Perseus has forged a reputation as one of West Africa’s most successful gold explorers. It is focused on under-explored gold belts in West Africa.

“We are a miner and our first gold sale will be this quarter,” Calderwood adds. “We have two major projects at different stages of evaluation and development.”



The construction

and operations

teams put in a fantastic

effort towards

completing the project on schedule

Mineralised waste being discharged to stockpile

The company plans to produce at the initial rate of 220,000 ounces of gold in year one in Ghana and wants to increase this to about 280,000 ounces per annum by 2013.

“The beauty of gold doré is that it can be sent to any refinery in the world,” Calderwood, who spent 11 years in Ghana before moving back to Perth to head up Perseus, continues.

As well as developments in Ghana, Perseus is also planning the development of its Tengrela Gold Project in Côte d’Ivoire, with production targeted for late 2012 or earlier. “We are tendering the design - we have tendered the SAG for that one – and we are also about to lodge the EIS,” Calderwood says. “We are continuing our strategy of rapidly increasing our resource and reserve base.”

Tengrela has the potential to become a significant contributor in the company’s goal to develop into a 450,000 ounce per year gold producer by 2013.


Group Five is a diversified construction services, materials and infrastructure investment group

Group Five Projects was awarded a contract by Perseus Mining Limited for the Engineering, Procurement and Construction of a 5.5 MTPA Gold Processing Plant in Ayenfuri Ghana, on a LSTK basis with DRA Mineral Projects as a 50/50 Joint Venture.

The contract with an order value of US$82.5 Million was awarded in November 2009. Design started in November 2009 and site access was given to the Joint Venture in June 2010, with the first breaking of ground occurring on 17 June 2010. The plant was accepted as practically complete on 20 July 2011, a record for construction in West Africa.

Corner Paul Smit & 13th Avenue Anderbolt Boksburg North I PO Box 26807 East Rand 1461 South Africa I Tel +27 11 899 4600 I Fax +27 11 918 2707 I Email [email protected] I www.groupfive.co.za

Commissioing of the Gold Barring Furnace with a slag pour on 23rd July



GOLDEN OPPORTUNiTYIn addition to its projects in Ghana and Côte d’Ivoire, Perseus retains a 23.9 percent stake in Manas Resources Limited, which it spun off in 2008 as a focused Kyrgyz Republic gold explorer and developer.

Perseus also has a 19 percent stake in, as well as a strategic alliance with, Burey

Gold Limited, a listed exploration company focussed on Guinea.

Calderwood has been managing director and CEO at Perseus since it listed in 2004 and he is a member of the Australasian Institute of Mining and Metallurgy.

He served as Managing Director of Afminex’s West African operations and has extensive experience in the West African region as well as a network of contacts throughout the region.

Recent years indicate a rapid growth in the African mining industry that is likely to continue well into the future as more markets open up and new resource companies enter the market. Perseus will play its own part in it.

“We are on track to start production with CAGP and we are also planning the development of Tengrela. Tengrela has the potential to become a significant contributor to our goal to develop into a 500,000-ounce per year gold producer,” Calderwood says.

“West Africa is pretty early on in the discovery curve, exploration curve in terms of maturity, and there are a number of discoveries in the pipeline, given the rate of exploration that is going on. We will look to add further projects to our portfolio, aiming to get our production levels up.

“We are an aggressive explorer and we have a lot of rigs – about 12 rigs at the moment - and are doing a lot of drilling. We do over 300,000 metres of drilling a year.

“We are looking for robust open-pit ore bodies, which are quick solid operations that have quick payback and relatively low cost. We are looking at mines that produce 150,000 ounces per annum – that is our minimum target for new projects,” Calderwood concludes.

To learn more visit www.perseusmining.com.END

First ore into the mill, 21st July 2011

Bisha Gold Project – Eritrea

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South Africa Magazine talks to Anza Bester, business development manager at Swift Micro Laboratories,

about food safety standards, expansion, a major milestone and the services the company provides.

By robert Michaels

years

S W I F T M I C r o L A B o r A T o r I E S :

20Celebrating

s ince its inception in 1991 – it was the fi rst commercial food-testing laboratory in South Africa – Swift Micro

Laboratories’ brand name has become synonymous with quality and service. Today, celebrating 20 years of business, the company provides a comprehensive product-safety service to the food and beverage, cosmetic, hospitality and related industries throughout the SADC region.

“I think we are certainly very unique amongst our competitors, not only as a result of our size or experience, but because we remain a market leader when it comes to innovation, quality and portfolio of services,” says Anza Bester, Swift’s business development manager. “Part of our mission statement is to match innovative approaches and quality management systems with the unique needs of each client. As a result, our service portfolio is continually expanding to meet demand and keep abreast of international trends, legislation and innovation.”

Microbiological testing is the company’s core business, with clients able to access the largest range of ISO 17025-accredited microbiological test methods. Other services on offer include the design, implementation and auditing of quality management systems such as HACCP, PRP’s, ISO22000 and BRC.

“Our state-of-the-art laboratories in Midrand and Cape Town employ highly-qualifi ed microbiologists and food scientists to analyse products on the same day they are received,” Bester says.

Trainers present customised courses in-house at clients’ premises, at Swift’s training venues in Midrand and Cape Town or in major centres across South Africa and Namibia.

“Our training courses include group discussion, case studies and role-play and are customised according to individual client needs, specifi cations and processes,” adds Bester.

Swift Micro Laboratories is a FoodBev SETA accredited training provider and holds exclusive rights to present the Campden BRI Advanced HACCP course in the SADC region. The company is now also an approved CPD accredited training provider for the Health Professions Council of South Africa (HPCSA).

Swift Micro Laboratories FEATUrE


part of our mission statement is to match innovative approaches

and quality management systems with the unique

needs of each client

Its Hygiene Department consultants are qualified in Environmental Health and/or Food Technology. Hygiene audits, based on regulations under the National Health Act (Act no. 61 of 2003) and R918, are customised. Audit findings are backed up by scientific evaluation of swabs, with product samples being tested in Swift’s ISO 17025 accredited laboratories and audit reports providing detailed action plans and recommendations.

A technical support team is made up of technically-qualified Microbiology and/or Food Science staff whose core function is to provide technical back-up for clients. This team adds value by interpreting results and reports as well as conducting on-site problem solving to ensure customer satisfaction.

Thusfar, 2011 has been an exciting year for Swift: besides celebrating 20 years of service excellence, Swift opened a new office in George (southern Cape), providing customers as far afield as Beaufort West and Humansdorp with access to a full portfolio of services.

“Our same-day, top-quality service is now on offer to southern and Eastern Cape clients,” Bester explains.

The company has expanded its scope of testing services, with accredited nutritional (and other chemical) analyses. It also has an exclusive service agreement with George Weston Technologies in Australia to provide nutritional and other chemical analyses locally. These include glycaemic carbohydrates, dietary fibre, vitamins, mineral and protein.


Swift Micro Laboratories FEATUrE


In June, Swift brought its services closer to the KwaZulu-Natal market when it opened a new regional office in Durban, located in Kingfisher Office Park in Mount Edgecombe.

Services include independent microbiological sampling, hygiene audits, training/technical assistance with problem solving and help with microbiological monitoring programmes as well as quality management systems. The Durban office also serves as a depot for sampling equipment and carries items such as cooler boxes, ice bricks, swabs and sterile sample containers.

Adding yet another string to its bow, the company’s commitment to quality management was rewarded on 3 June when it was declared a winner at the annual 2011 South African Quality Awards in the category Quality Services (for large enterprises).

Run by the Department of Trade and Industry, the annual awards promote quality and effective quality-management methodologies in South African business. They recognise companies that “adhere to proper quality norms” and comply with local, regional and international quality standards.

Awards are made in five categories, with Swift receiving recognition for service that best reflects commitment to local production and quality. The win means the company qualifies for entry into the SADC Annual Quality Awards in 2012.

“We are absolutely delighted to have received this award – it’s wonderful to be acknowledged for our hard work,” says Bester.

While Swift has clients throughout South Africa, Namibia, Botswana and Mauritius, its services are available to companies across the continent.

“Swift Micro Laboratories is proud of the way we do business and we are vested in building long-term partnerships with our clients through service,” Bester concludes. END


The Vineyard Hotel & Spa is a Cape Town idyll, a place of tranquillity and hospitality. General manager

roy Davies talks to South Africa. By Ian Armitage

World-class,accommodationluxury

s et against the gorgeous, lush and leafy backdrop of Newlands, the Vineyard Hotel & Spa offers just

the right amount of privacy and exclusivity while still keeping with the cosmopolitan atmosphere that Cape Town is known for.

The deluxe 207-roomed hotel is one of the finest establishments in the Western Cape, offering a luxurious and romantic atmosphere in the heart of the suburbs. Guests can indulge in the finer things in life, from world-class dining experiences, to totally luxurious and revitalising spa treatments.

Best of all, it is a stone’s throw away from the hustle and bustle of the city centre, some of SA’s best shopping destinations, and famous Cape Town beaches.

“We are one of Cape Town’s most open secrets,” says Roy Davies, general manager of the Vineyard Hotel & Spa. “The vineyard is the oldest lady in Cape Town and have been looking after guests for over 100 years. We are one of the finest venues in Cape Town for conferences, wonderful for weddings or special occasions.”

Originally built by Lady Anne Barnard in 1799, the Vineyard Hotel & Spa remains a traditional and elegant retreat, celebrated for its peaceful setting and the excellence of its cuisine and fine wines.

“The hotel is filled with works by leading South African artists and offers rooms ranging from single to family suites, both mountain and courtyard facing,” says Davies. “We have two outstanding restaurants: the Square, a favourite

Vineyard Hotel & Spa FEATUrE


for breakfast and dinner, as well as a popular sushi bar; and Myoga run by Mike Bassett, renowned for his contemporary fusion style of cooking. The patio also is a great sun downer venue, with the slopes of the mountain as the backdrop, when the sun slips behind it!”

According to Davies, the Vineyard Hotel & Spa is well known for its warmth and efficient service, and is “the gateway to all the delights of greater Cape Town”.

“The big thing about the Vineyard when you arrive at the hotel you see a restored old house, and you will form the impression that it is small,” Davies says. “But it’s one of those places where you peal back the layers as you move through and it is a continual surprise.

“It is a relaxed atmosphere. For some, the Vineyard is their local and they want it to remain their secret hideaway. It is not a property that has been advertised over the years and made a big thing of. It has quietly got on and does what it does very well.

“The people that come here are not ostentatious

or glitzy, but they may be well travelled,” he adds.

The original house was built in a vineyard of 20,000 vines, but over time this dwindled and 150 years ago disappeared. In 2008 a hundred vines were planted and will bear fruit for winemaking very soon. “We were a vineyard without vines,” Davies says. “We

have generated a partnership with five family-owned vineyards, four in Stellenbosch, and another in Constantia.”

The hotel offers wine-paired dinners


Vineyard Hotel & Spa FEATUrE

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where guests hear about the farms and the “very special” relationships, Davies adds.

“We are building up a point of wine reference,” he says.

Davies started at the Mount Nelson Hotel and then did a short stint at Sun International. In 1989 he opened The Bay Hotel and then spent around 10 years there. He then decided to be an entrepreneur for about seven years, which took him to the UK, and returned to SA in 2006 to take up a post at the Vineyard Hotel as general manger.

“I haven’t looked back since,” Davies says. “The Vineyard Hotel & Spa is a wonderful hotel of variations; The pool area, for example, boasts a deck area that is tranquil and in summer have a green base, Table Mountain and blue sky for a view.

“There is also an amazingly fitted out gym with the Angsana Spa as a neighbour. Future goals include growing our wine interest to infect our guests with the collective passion for wine. We have regular wine events and strive to ensure that they each have a twist that creates interest for our guests, visitors and local supporters.”

The warmth and attentiveness of the staff too is almost a routine of comment among guests, Davies adds. “This is a family owned business and the family has looked after the staff over the years to the degree that they feel like part of it. The staff takes that hospitality to the guests many of whom keep coming back.

“Any hotel can be smart in appearance and slick, but staff make the difference. Our staff have a lot of heart and caring – which is not something you often find in hospitality because a lot of services are often outsourced.

“This is a family run and operated business and the values of family extend to everything we do,” he concludes.

The hideaway also has a strong green culture. For further information visit the Vineyard Hotel & Spa website. END


South Africa Magazine talks to SA Canopy managing director Tony Walsh.

By Colin Chinery

TOps T H e

L O TS A C A n o p y

ability to stock our franchisees with products are all critical.

“A canopy is not an impulse buy, and when somebody, whether a vehicle dealer or the man in the street, comes into one of our fi tment centres, they want a canopy and they want it today. If you haven’t got the stock they go to somewhere that has. But we carry the stock, and along with it the ability of our franchisees to service the market on demand.”

With a 25-year track record, SA Canopies is a well-respected brand, says Walsh. “If you are researching over the net and not through a dealer, we would hope our warranty (if fi tted by an approved SA Canopy Fitment Centre) – two years on the fi berglass shell and a one year warranty on mechanical items - along with product features, the support we offer nationally, and our competitive pricing, would be enough to swing you to SA Canopy.”

Attracting and developing skills says Walsh, is an on-going problem, “but one that can be overcome” by identifying and investing in people. “Of course before you train the individual has to have some cognitive ability to take that training on, and so

we identify those with potential to grow,” he says. “Then we make the investment in training in a number of aspects from manufacturing techniques and technical skills to diplomas and appropriate degrees, with some of our people sent to local university or institutions offering specific training.


SA Conopy FEATUrE

s A Canopy is one of the biggest canopy manufacturers in South Africa, supplying the local market and exporting into the sub-Sahara

region. A well respected and sought-after brand, its all inclusive range extends from sleek and low profi le units to standard high units – incorporating blank side options – and commercial Spacesavers, with a multitude of fi breglass and glass door options including full doors. “Playing hard, or hard at work, SA Canopy, as a slogan says, has the product to suit your requirements,” says MD Tony Walsh.

Headquartered in Port Elizabeth, SA Canopy manufactures – from its adjacent plant – canopies for half and one ton light

goods vehicles. It is also the sole South African importer and distributor of Carryboy Canopies and accessories, the number one luxury canopy in Southern Africa. SA Canopy Centre is

approved by and has direct supply agreements with most of the major motor manufacturers and vehicle importers in South Africa

“We manufacture mid-range to commercial canopies and successfully marketed Carryboy as a luxury canopy,” explains Walsh. “South Africa is a very important market for them and our special association gives us a full product offer from luxury through to the commercial type that the plumber and the carpenter would use.”

A defi ning key to SA Canopy’s success is its franchise network of fi tment centres. “Our distribution, our route to market and

our vision is to

be the customer’s preferred

choice

“Over the past two years we’ve been building – systematically – a technical department of engineers, invested heavily in the latest computer design equipment, in-house design and component development. We have absolutely no issues with investing in people; it’s part of our core philosophy.“We are also working very closely with the Engineering Faculty of the Nelson Mandela Bay University in Port Elizabeth, with regard to the placement of their engineers who need practical work,” Walsh adds. “This serves two aspects; it provides them with exposure to industry and at the same time exposes our people to students with a high level of capability and capacity. It’s a two way learning stream.”

The potential for profitability and success in the canopy manufacturing sector is measured by the availability of canopy-compatible vehicles entering the market on a monthly basis. And that market is in a state described by Walsh as one of “slow recovery”.

“In 2007 -2008 there were 204,000 light commercial vehicles sold in South Africa; in 2009, 94,000. In 2010 there was a recovery to 115,000 and at the moment we are experiencing growth of about eight percent. The

market in other words has more than halved and is starting to recover. There’s a scarcity of lcvs, and it’s more and more difficult to maintain the sales levels of 2006-2007.

“Last year we had 15 percent growth in the light commercial segment and it’s currently running at six and seven. This year they are forecasting between eight and 10. The Japanese situation hasn’t helped South African vehicle producers, with component and parts shortages that resulted in plant shutdowns at many of the local manufacturers for a number of weeks. The recovery figure is still at that eight percent mark but it’s becoming more and more of a struggle.”


SA Canopy FEATUrE

Another issue is the availability and extent of disposable income. “The South African public has a very high debt to income ratio and credit has been an issue with banks having very, very stringent lending criteria. More recently there seems to have been a relaxation of credit, so we would expect to see growth continuing maybe eight to 10 percent over the coming years. But this is dependent on a number of factors, especially of course the strength of the national economy.”

SA Canopy’s philosophy says Walsh, works through every aspect of the business. “We are focused on our franchisees and their wellbeing, and similarly very

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focused on our employees, customers and shareholders. We always encourage the entrepreneurial spirit both within our business and franchise network.

“Our vision is to be the customer’s preferred choice and the leading supplier of canopies throughout sub-Sahara Africa. Our mission - which is related more to our short-term and what we do – is always to deliver consistent quality and competitive pricing through continuous improvement of our people, processes and products.

“SA Canopy products are all manufacturer-approved, providing the customer with the peace of mind that his or her vehicle is covered by the best. We want to be seen as an innovative company focused on delivering quality at a good price. We are a business building for the future.” END


Zambia’s airportsambia’s airports

faceliftS E T F o r

South Africa Magazine talks to National Airports Corporation Limited (nACL) of Zambia’s prince Chintimbwe about the strategy to upgrade, expand and improve the nation’s four most important airports.By Ian Armitage

W hen we sat down to talk with National Airports Corporation Limited (NACL) of Zambia’s director of

airports services, Prince Chintimbwe, you couldn’t help but think about Zambia’s undoubted potential. Investment in the country continues to rise, driven by mining, manufacturing and tourism.

“To give you an example, Chinese direct investment in Zambia exceeded $1 billion in 2010 and created more than 15,000 jobs,” Chintimbwe said. “Zambia is a country driven by two thriving industries: mining and tourism,” he added.

He has a valid point - mining is an industry in full expansion mode, while tourism is undergoing serious growth, as Zambia continues to draw increasing numbers of people keen to experience the country’s stunning landscapes and wildlife.

“Because of this we have a strategy to upgrade, expand and improve four important airports and create a gateway to the country that will leave a lasting impression,” Chintimbwe said, before telling us about some of the improvements NACL has planned.

“What are those four airports? Well, most visitors and workers arriving in Zambia enter the country via either Lusaka, the country’s main airport, Livingstone, which services the tourist destination of Victoria Falls, Mfuwe which services the South Luangwa National Park, and Ndola which lies in the heart of the Copperbelt province and is the route of access for the mining industry. Our mandate covers those airports,” he said. “The expansion in mining and tourism has been refl ected in the passenger fi gures, which have been increasing at a rate of 10 percent year-on-year. The growth has also been felt by the regional airports.”

NACL was established in 1989 by an act of parliament, with a mandate to provide

NACL Zambia FEATUrE


air navigation across the nation and airport services at Livingstone, Mfuwe, Ndola and Lusaka airports.

In 2010 it handled around 1.09 million passengers. Lusaka airport, which Chintimbwe describes as “the international gateway to Zambia”, handled 65 percent of all those passengers and is NACL’s flagship airport.

“Why are we improving our airports?” Chintimbwe asked. “The airport is the fi rst and last thing people see when they come to and leave the country. We want the experience to be lasting.”

According to Chintimbwe, NACL has invested grant aid from the US Trade and Development Agency to create a “master plan for the development Lusaka, Livingstone, Mfuwe and Ndola, up to 2029”, an exercise that was concluded not too long ago.

“It is an ambitious plan we have and we will be doing a whole host of things,” Chintimbwe said. “At Livingstone, for instance, the intention is to attract and handle long haul tourist fl ights, and we are already well advanced towards that goal.”

Livingstone airport received 10 million euros from the European Union in 2007, which was spent rehabilitating and extending the runway to three kilometres, he added.

A new terminal is also in development.“We have a phased approach,”

Chintimbwe said. “Phase I began in August 2010 and includes the construction and equipping of the concourse area and departure lounge, and this will go straight into operation when it’s complete in April 2012. Phase II will start from that point and will include with the construction of the arrivals part of the international terminal.


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“The new terminal will be furnished with the very latest technology from cargo and baggage handling through to passenger processing and security systems,” he continued.

Once construction is completed, Chintimbwe hoped that the current terminal would be retained for internal fl ights, although that isn’t settled yet.

“This whole project to improve Livingstone is expected to cost around $95 million. Lusaka, of course, is the nation’s international gateway and the plans here are on a much larger scale. Designs are already completed for the construction of a new terminal capable of handling over two million passengers a year. It is estimated to cost around $196 million.”

The upgrades and improvements are absolutely vital, he said. “The current infrastructure predates independence;

NACL Zambia FEATUrE

Lusaka for example was built in 1967. We are working to change this as quickly as we can - capacity and the facilities/infrastructure should not hinder our propensity to grow. We are trying to make the capacity available to meet demand.

“Where we are already making improvements, the aesthetics are very important,” Chintimbwe added. “From the aesthetic perspective, considerable thought has gone into designing the airports to represent the region in which they are located. All our airports will carry a theme.”

Once the work is completed, it will equip Zambia to fully develop its blossoming tourist trade, and to provide comfortable and attractive travel facilities for the many people arriving and departing with the mining industry, he concluded. END

“B eautiful Country, Beautiful Fruit” runs the South African promotion

theme now in British shops, and high up in Northern Province, Letaba Estates is delivering the delectable reality.

The fruit-growing sector contributes 4-5 percent of South Africa’s GDP and significant foreign

currency earnings. And while many farms are small, large-scale producers such as Letaba Estates - fruit production and fruit processing - predominate, making up perhaps 70 percent of total output.

“We are a top quality producer of both fresh fruit and processed products, vertically-integrated, managing the business from seed to shelf and big enough to provide the backbone of any supply programme,” says CEO Marius de Bruyn.

Letaba Estates is part of African Realty Trust (ART), established 109 years ago and one of the oldest


Fruit is a South African Big Earner and employer, and Letaba Estates a growing presence in world markets. CEo Marius de Bruyn talks to South Africa Magazine about its

qualities, ambitions, and impressive philosophy. By Colin Chinery

F r o M S E E D T o S H E L F

F R O M s eeD T O s H eLF

registered companies in South Africa. The first citrus trees here were planted in 1922 as part of a Government project before ART acquired the fledgling estate and began farming in 1932. Some 29 years later a juice processing and value add operation, Letaba Citrus Process (LCP), was established alongside the fruit-growing Letaba Estates entity. Today 3,090 acres are given over to citrus (soon to be 4,000 acres), and 370 acres to bananas; fresh fruit accounting for some 40 percent of turnover - depending on seasonal climatic fluctuations.

“Juice – there are currently few ‘own’ brands, LCP working instead with global brands – accounts for around 20 percent of the South African market share,” says de Bruyn.

New and exciting foreign markets are expanding for South African fruit, with some growers reporting a contraction in traditional and well-established destinations where increased home production is cutting into imports. But Lataba, riding high and wide, is not among them. “In our main export markets we haven’t been threatened by domestic production. We seem to be in a unique window of opportunity in terms of supplying fruit where domestic production doesn’t place any real threat to our product, no head on competition,” de Bruyn explains.

“But it is certainly the case that our growth focuses for the past three to five years have been Asia and the Middle East, more specifically, mainland China and

South East Asia, which have been increasing their consumption rate.” And this, he says, “has created phenomenal opportunities for us.”

And as Johan Rossouw, General Manager Farming emphasises, growth means employment – Letaba has a workforce of 1700. “Job creation is a major beneficiary of South African fruit farming and the development potential of those working on the farms. And for us this is very significant, being a rural major primary agricultural producer, and with the people we employ supporting many thousands of people locally.”

For an industry reliant on agro-chemicals, the sustained global upsurge in oil prices and its derivatives has been a major issue, and Lataba Estates has reacted by implementing new transport and freight methods, improving load efficiency – a critical area - and using its port facilities significantly more efficiently, especially in the areas of cutting handling and storage costs.

These are challenges to which Andries van Wyngaardt, General Manager Processing adds another

Letaba Estates FEATUrE


- geography. “We are 500kms from Johannesburg where the economy and expertise is largely concentrated. Up here everything we do we have to do ourselves and in effect be the expert. This ranges from back-up power generators to run the entire plant to on site and effluent treatment.

“You can only achieve self-sufficiency on this scale through a motivated workforce. The growth we’ve shown in the last couple of years and the length of time we have been in business as a major contributor to the South African business environment is a testimony to the success story.

“We are one of the few in the industry that has already been audited and accredited with an official BEE rating as a Level 5 contributor. Some of the areas where we did extremely well in include business and enterprise development, where we assist local growers in meeting the challenges they face, and giving them not necessarily preferential treatment, but treatment more specific to their needs. Internally we have a policy where we promote our own employees, a commitment that breeds excellence and enforces continuous training and improvement of our workforce. Across our labour force it is common to find two to three generations working for the company; it seems the rule that people remain in our employment for a very long time and that speaks for itself.”

To the basics of self-sufficiency Letaba has added a further critical strategy – Going Green. “We had a high consumption of carbon fuels in the form of coal. This we already halved by a fuel swap into bio-mass,” says de Bruyn. “It’s something we are placing a lot of emphasis on, and we are in the process of converting our complete energy-producing coal consumption.”

“We are also pursuing major improvements in juice processing and environmental impact; we are now at the point where we comply with the most stringent requirements between international customers and local legislation. On the farming side we have improved soil structure and tree health, and reduce dependency on harmful agro chemicals.

“Over the past five years we’ve made great strides in this strategy by introducing more biological materials into our production. And for me this is an extremely big positive in our business. We are now getting to the


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point where we are producing higher quality fruit from healthier trees in a more biological environment.”

To what extent does the Green agenda count in the decisions of the shopper? “Although insignificant for the bulk of South African consumers today it is becoming increasingly significant for local customers. A further driver is the pressure on water resources and increase in energy cost,” says van Wyngaardt. ”In a pre-emptive strike, we believe that this ‘green approach’ will not only reduce the burden on our environment, but will also improve the long-term sustainability of our business” de Bruyn adds.

Letaba’s goal is to become the world leader in the production and processing of fresh fruit, specifically citrus and sub-tropical fruits through a motivated, innovative and committed workforce, says de Bruyn. ”This entails a highly integrated structure, and we pride ourselves on the scale of our training and upliftment, something that impacts not only on our

workforce but also in the lives and employment of the wider community around us. All this comes with a lot of responsibility.

“From an international standpoint maybe Black Economic Empowerment is not that important, but from a South African perspective it is critical. We were the first primary agricultural producer in South Africa to be BEE accredited, a major achievement in itself, and to be rated Level 5 even more so. Our commitment is to move further ahead, and find continuous improvement of our processes and business.” END

Letaba Estates FEATUrE

We are now getting to the

point where we are producing

higher quality fruit from healthier

trees


Improvement in the quality of South Africa’s culinary offering has been great for Meridian Wine Merchants, marketers and distributors of fine South African wines,

MD Gavin Dittmar tells South Africa Magazine.By Ian Armitage

M E r I D I A n ’ S

s outh African wine is equal to the best in the world and South Africa is the world’s seventh-largest wine producer. At home, South African wine is ever popular.

According to wine businessman and marketer Gavin Dittmar, improvement in the quality of South Africa’s culinary offerings over the past 15 years has helped to increase the appreciation of fine wine in

South Africa. He says industry figures show wine local wine consumption levels to be rising by between two percent and four percent per annum, a trend, which is predicted to continue.

“It’s great for our business, Meridian Wine Merchants,” says Dittmar. “Improvements to the quality and the diversity of South Africa’s culinary landscape can only be of benefit to the wine industry – a trend we have seen more and more. Currently more is spoken and written about food than ever, and wherever food comes into the picture, wine is seen as its natural partner.”

Dittmar, who has been marketing and selling wine since the mid 1990s, says that today’s diners are truly spoilt for choice when it comes to wine compared to when he first started out.

Huge strides have been made. The marketing and distribution of South African wine has changed dramatically in the past 15 years, prompted by new opportunities and challenges mainly due to the political liberation of South Africa and the ending of sanctions. That combined with a global shift to free international trade during the 1990s meant the South African wine industry suddenly found itself in a new operational environment, an environment, which created new opportunities. “There were definite improvements in wine quality as our brands now needed to compete on a global stage,” says Dittmar. “Producers were also exposed to better winemaking techniques and styles.

Meridian Wine Merchants FEATUrE


We focus not only on

wine sales and distribution but on wine

marketing and brand building

as well

128


“With the emergence of a large middle-class since 1994 there is certainly a greater awareness of wine amongst South Africans as well as a greater interest in wine as a partner to food and as a beverage in general.

“It is all very pleasing.”Dittmar says Meridian Wine Merchants is a

company of “dedicated people, committed to the excellent brands”, which it “represents through a focused approach to wine sales, marketing and distribution”, quoting the fi rm’s website. “We take pride in our excellent service levels,” he says. “We strive to always be innovative, creative and visionary, ensuring that we remain leaders in the wine industry.”

Meridian, he adds, stocks a huge variety of wine and you can fi nd anything from speciality brands like Anthonij Rupert , Cederberg, Delaire, and Meerlust to the more mainstream brands of Ken Forrester, La Motte, Leopard’s Leap, and Beyerskloof.

It also represents the French Champagne houses of Billecart-Salmon, Barons De Rothschild and Pommery.

“The Meridian portfolio is divided into, Meridian Latitude and Meridian Longitude each of which has it’s own national sales team headed up by regional sales managers,” Dittmar says. “Latitude comes from the Latin word “latus”, meaning wide, focusing on the brands driving growth and requiring broad distribution through all sales channels. Longitude meanwhile represents the brands that require more specifi c brand positioning.”

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Meridian’s national sales team, he continues, is made up of a passionate and vibrant group of “wine ambassadors” dedicated to the brands they represent.

“We focus not only on wine sales and distribution but on wine marketing and brand building as well, offering a full range of services,” Dittmar says.

“Although South Africans are not predominantly wine drinkers, the industry, and are always looking for ways to develop the local market,” he adds.

“The black upper-middle class, increasingly referred to as the Black Diamonds, are the most significant opportunity we have seen for many years,” Dittmar says. “They have emerged as one of the strongest buying influences in the economy.”

Many challenges exist, however. “Stakeholders in the South African wine industry

are increasingly under pressure because although exports are growing, the strong rand erodes the profits; there is a global over supply of wine; there is an influx of new brands; large retailers are densely concentrated and wield the power against a fragmented supply side; and prices are perpetually under pressure. That’s why it is important to do business in a focussed way.

“The South African wine market has undergone and continues to undergo changes at both the producer and consumer levels. Producers in the wine industry face a challenge to deliver wine offerings that are aligned with wine consumers’ needs and preferences. This is challenging because there is always a lag time of at least five years from planting a vineyard to putting a bottle on the table. ”

As a business Meridian has enjoyed fantastic growth. It is also a socially conscious business and is heavily involved in the Make A Difference Foundation, which gives academically talented but economically disadvantaged youths an exceptional opportunity to reach their full potential as leaders and role models in South African society.

To learn more visit www.meridianwines.co.za. END



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samag - issue 17

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