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AfricAn Business

SePTeMBer 2011 Volume 2 Issue 9


www.tabj.co.za

The

Journal

IN THIS ISSUE

Business and culture Teachers in Africa

Politics Water Wars

comPany Focus Lubritene

CrunCh time!

can the springboks make it three?

SECTION Title

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eDiTOrs note

Hi fOlks, I hope you are enjoying a fulfilling summer so far. Assuming you are, heres another ray of sunshinea new edition of The African Business Journal. The front cover subtly suggests that something big with a strange-shaped ball is afoot. Yes, Rugby Union World Cup fever is spreading. Crunching tackles, steaming scrums, phenomenal footwork and try line high jinks are the order of the daywhy, you can almost smell the antiseptic spray! To celebrate the occasion Im going to look wistfully back at tournaments gone by, while also forensically dissecting the most threatening teams at this years jamboree. Also, as the paint dries on goalposts in preparation for the new season, we take a look at African footballers who hope to add some sparkle to the frantic cauldron of the English Premier League. This months edition is further proof that the African economy is enjoying a renaissance,

with many industries experiencing a gradual change of fortune, after some difficult months. The companies were profiling cover practically every walk of life from properties and gardening to electronics and carbonated drinks. We also take a look at mining (naturally), cotton, fruit, motor vehicles and many other industries to boot. In addition, we have the next in our series of Poprica (checking out more African influenced music) and a study of how water shortages may cause the next major war. Before I dash, I must also alert you to an exclusive interview with a chap who has been teaching business studies in Egypt. Not only has he been changing young lives for the better, but there has also been the small matter of a revolution to deal with. Over and out, John

TABJ Team

Sara Kopamees | Editor in Chief | sarak@georgemedia.ca John Pinching | Editor | johnp@tabj.co.za Ben Watts | Staff Writer | benwatts@aubj.com.au Cory Wilkins | Editorial Assistant |coryw@georgemedia.ca Vladimir Lukic | Creative Director | vladimirl@georgemedia.ca Chris Moore | Sr. Advertising Designer | chrism@georgemedia.ca Margaret Oldham | Sr. Graphic Designer | margareto@georgemedia.ca Wincy Law | Sr. Graphic Designer | wincyl@georgemedia.ca Tanya George | Advertising Designer | tanyag@georgemedia.ca Marc Mauricio | IT/Production Support | marcm@georgemedia.ca Natalie Edney | Head of Sales | nataliee@tabj.co.za Khayyam Darr | Research Director | khayyamd@tabj.co.za Andrew Miskin | Research Director | andrewm@tabj.co.za Brett Haigh | Research Director | bretth@tabj.co.za Justin Lejuene | Research Director | justinl@irjonline.com Hugh Braithwaite | Research Director | hughbl@tabj.co.za Dee Nazer | Research Director | deen@tabj.co.za Michael Alexander-Jones | President | michaelaj@georgemedia.ca Linda Neal | Chief Executive Officer | lindan@georgemedia.ca Naveed Yusuf | Chief Information Officer | naveedy@georgemedia.ca Gemma Parkins | Executive Assistant | gemmap@tabj.co.za

South africa office GEoRGE MEDIA InC. 23 Wellington road Parktown, 2193 Johannesburg

uK office 2 Sheen road richmond Surrey uK TW9 1ae

Table of cOnTenTs
SePTeMBer 2011 | VoluMe 2 | ISSue 9

046
cOVer feATure news speciAl repOrT

rugBy wOrlD cup 2011 Cruch time! Can the springboks make it three? 010 Muse business news coming out of africa AfricAn fOOTBAllers africas premier exports pOpricA! Part two wATer wArs Could water worries spill into war? TeAcHers in AfricA out of the comfort zone sODA king Sparkling performance cHilTern fArMs Core, what a lovely pear uD Trucks Motor head TrAnspec The industrial body builders iMperiAl Truck renTAls The truck stops here
020 028 036 040 046 052 060 066 086 094

pOliTics Business & culTure fOOD & Drink

TrAnspOrTATiOn

010
094

Table of cOnTenTs
SePTeMBer 2011 | VoluMe 2 | ISSue 9

166
cOnsTrucTiOn

sABle HOMes Willing and Sable penBrO kelnick electric dreams elB equipMenT Moving heaven and earth erBAcOn sMAll plAnT Tools gold MOOlMAn grOup Spearheading South africas property investments MOrgADO Planting the seeds of success VegTecH People in glass houses
Strategy, knowledge, networks and success. how glOBAl pAcific & pArTners continues to outperform all other advisory bodies in industry

108 116 122 132 138 144 152 158 166 174 184 192

MAnAgeMenT & OperATiOns

Msp DeVelOpMenT Building a community


MAnufAcTuring

luBriTene Greased lightening cOTTOn king Keep it reel BellzOne Iron men

Mining

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

can the springboks m

time!

make it three?

12

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

fAVOuriTes TO lifT THe TrOpHy On 23 OcTOBer


11/8 new Zealand 4/1 Australia 6/1 South Africa 10/1 England 16/1 France 20/1 Ireland 50/1 Wales 90/1 Argentina 175/1 Scotland 400/1 Samoa 750/1 Figi, Tonga 1000/1 Everyone else 2000/1 namibia

SEPTEMBER 2011 The African Business Journal

13

When the Rugby Union World Cup story began 24 years ago the organisers had high hopes for a sport that had long-deserved a platform befitting of its massive popularitya stage upon which its finest exponents could display their myriad of skills in front of a captivated international audience. Even in those halcyon days of the late 1980s, not even the most optimistic fans could have predicted the blood and thunder produced by this increasingly spectacular tournament.

of tradition by toppling rugbys original architects and joint hosts, England. Although the game at Twickenhamwhich the Aussies won 12-6was indicative of a low scoring and defensive tournament, it heralded a new chapter of southern hemispheric domination and raised serious questions about Will Carlings famously arduous team briefings (during which Jeremy Guscott would apparently fall asleep). Many saw this as an official changing of the guard and, for England, it began a 12-year hiatus from the World Cup final.

History in the making


For connoisseurs of the previous six campaigns there are particular memories that spring instantly to mind. The first champions, New Zealand, jointly hosted the competition and proceeded to make light work of any team that stood in their way. This included a mercurial French team who were convincingly trounced 29-9 in the inaugural final. That day the nonchalant Kiwi team included legends such as Sean Fitzpatrick, Grant Fox, John Kirwanwho scored a decisive try in the final and Michael Jones. Four years later Australiafeaturing mouthy try machine David Campeselaughed in the face

Pump up the volume


In 1995, Jonah Lomu burst on to the scene leaving a trail of forwards flailing hopelessly in his wake. Huge, powerful and lightning-fast, Lomu stamped his indelible footprint on the tournament, scoring several breath-taking tries. It was South Africa in their own back yard, however, who defied the experts by smashing, skipping and swooning their way to victory, adding a coat of sensational gloss to Mandelas brave new post-apartheid nation. It would also drag the sport kicking and screaming from ale-saturated, nicotine-stained amateur clubhouses into the weight-pumping, speeding-locomotive gymnasium of professionalism.

14

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

A year before the millennium it was Australias turn to bookend the decade with another cup, leaving the legacy that their form over the preceding ten years warranted. The solid and impenetrable 1999 outfit coasted to the final before sweeping aside perennial runners-up France. Most of the points in a 35-12 victory came from Matt Burkes trusty boot, making Australia the first country to trouble the trophy engravers twice. Upsettingly, it would also be the last time that traditional cotton shirts would

be worn at the finals. Shortly after, the big sports brands introduced eye-wateringly tight spandex attire; flattering to some and positively insulting to others. After a dozen years in World Cup final wilderness the colonialists unveiled, at will, a majestic weapon, with a left foot of pure gold. Johnny Wilkinsons schedule of practice teetered on the brink of OCD, but paid dividends right at the death. During the final, in Sydney, England took the game to the Aussies, trading

SEPTEMBER 2011 The African Business Journal

15

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

crunching tackles, getting under their skin and matching them point for point. Led by the lionhearted Martin Johnson, they poured forward in the final seconds, and the ball eventually broke to Wilkinson who dispatched his devastatingly precise drop-kick with ice-cold, consummate ease. At the climax of the 2007 shin-dig, a battered and heavily-criticised England somehow made it into the final again. This time a South African team with tenacity, brutality and creativity to burn

crushed the holders to lift the Webb Ellis trophy for a record-equalling second time. The teams glorious progress through the championship was highlighted by the gazelle-like speed of top try scorer Bryan Habana and never-say-die approach of the talismanic Schalk Burger. It had been yet another classic fortnight of theatre, confirming the Rugby World Cup as a premier fixture on the sporting calendar and leaving a global audience counting down the seconds to 2011.

16

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

Whos coming to the party?


With the tournament a matter of weeks away TABJ dusts off its magnifying glass and examines the match winners, secret weapons, enigmas and potential heroes from the top nations.

sOuTH AfricA
explOsiVes experT: BryAn HABAnA He already has a winners medal proudly pinned to his lapel and Habana will be looking to add another this summer. Although his form has been inconsistent since the memorable 2007 victory, the wingers abundant box of tricks has often reopened when club and country have needed it most. Provided he is given adequate service, the electrifying turn of pace that has earned him the nickname dash, could light up the tournament. Under fire, coach Peter De Villiers will be praying that his star mans afterburners are activated in time for the early stages. ArTillery: MOrn sTeyn, scHAlk Burger, cHiliBOy rAlepelle

SEPTEMBER 2011 The African Business Journal

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englAnD
explOsiVes experT: cHris AsHTOn Ashton caught the eye of England selectors after converting from rugby league in 2007. He put in some unforgettable performances during the early part of 2011 and perfected the knack of being in the right place at the right time, to finish Englands intricate passing sequences. He usually completes a try by swan diving over the line, much to the chagrin of one M. O. Johnson, whose attempts to censor Ashtons gymnastics have proved fruitless. It is the wingers industry and enthusiasm, however, which are most likely to succeed during the World Cup. ArTillery: JOnny wilkinsOn, lewis MOODy, MArc cueTO

irelAnD
explOsiVes experT: BriAn ODriscOll Outside centre and veteran of well over 100 international caps, ODriscoll is one of several members of the Irish contingent who will count this tournament as their last great opportunity for goldware. ODriscoll, who has proved pivotal during several successful Grand Slam campaigns, scored two tries during the last World Cup but didnt quite live up to his nations high expectations, on the loftiest rugby stage. Hell be looking to put that right in the early exchanges this time, delivering his lethal combination of flair and fearlessness. ArTillery: pAul OcOnnell, rOnAn OgArA, gOrDOn DArcy

18

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

AusTrAliA
explOsiVes experT: quADe cOOper A young man with authoritative rugby shoulders, Cooper has dismantled teams with his running breaks and dynamic passing. After the recent Wallabies tour his maturity on the pitch was unfortunately counteracted by an inexplicable Gold Coast stealing spree which earned him a burglary conviction! The inside centre will be hoping to commit grand theft of the sporting variety when his rejuvenated team start their campaign in a potentially tricky encounter against Italy. With Cooper in the ranks a third World Cup for the Aussies is a distinct possibility. ArTillery: JAMes O`cOnnOr, sTepHen MOOre, ADAM AsHley-cOOper

OTHer TeAMs cOMpeTing in THe 2011 rugBy uniOn wOrlD cup


Argentina, Fiji, France, Italy, Scotland, Tonga, Wales, Canada, Georgia, Japan, namibia, Romania, Russia, Samoa, United States

SEPTEMBER 2011 The African Business Journal

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new zeAlAnD
explOsiVes experT: DAn cArTer New Zealand are in pole position to snatch their first title since the inaugural competition and one man sums up their ethos entirely; D. W. Carter. Quiet and reserved off the pitch, but fluent, athletic and devastating on it, Carter is considered one of the greatest fly-halves to have graced the game. Arguably the complete player, he has already dispatched well over 1,000 points, incorporating all the different methods of scoring. Carter will see the World Cup as the ultimate test of his extraordinary abilities. Dont be surprised to if he heads the points table. ArTillery: ricHie MccAw, cOlin slADe, MAA nOnu

frAnce
explOsiVes experT: VincenT clerc In Vincent Clerc Les Bleus have a waspish little dynamo who, on his day, can dazzle, dink, drive through and deceive defences. His diminutive frame, positional sense and fast reactions have often combined to create try scoring opportunities for both him and his team mates. He will be hoping to revive the fortunes of an inconsistent French side who flattered to deceive in the 2011 Grand Slam, but whose finesse and je ne sais quoi is often typified by Clerc. Although a French triumph seems unlikely, he has defiantly stated that France are capable of securing a first title. ArTillery: MAxiMe MDArD, MOrgAn pArrA, DiMiTri yAcHVili TAB

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Muse business news com

NEWS IN REVIEW

new Business, As sTAnDArD Africas largest bank, Standard, has revealed its market-beating performance in the first half of this year, while also laying down plans to launch a bigger onslaught on the domestic and African market in the near future. The banking group reported earnings of R6,64bnan increase of 11 per centand headline earnings per share of 418,4c, a rise of 10 per cent. The market has reacted positively to the results, with its share price closing four per cent, up at R94,50. The CEO of Standard Bank SA, Sim Tshabalala, said Standards desire to lend to individual and corporate customers had never been greater.

He added that after presenting Standards results there had been an all-out effort to use its balance sheet clout to create new business across all market segments. We are open for business but we are not chasing market growth, says Tshabalala. Market share growth is what we do very efficiently and we will continue to act with due diligence in the way we lend and price our risks. Standard now has the largest market share in home loans, credit cards and share of deposits in South Africa and also has 9.3 million retail customers. Group earnings in the period to June got a boost from a 30 per cent increase in earnings

SEPTEMBER 2011 The African Business Journal

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ming out of africa


within the personal and business banking unit of R2,5bn. Meanwhile, retail banking operations in SA showed a growth of 17 per cent in earnings to R5,53bn. pc is DeAD sAys iBM Apples Steve Jobs has regularly claimed that we are living in a post PC universe. Now an IBM executive has added fuel to the fire. Chief technology officer for the Middle East and Africa region, Mark Dean, says the company did the right thing by getting out of the PC business. August marks the 30th anniversary of the ground breaking IBM 5150 PC, which was widely considered to represent the dawn of the PC era. IBM, for years, lead the way in ensuring a PC in every home, a campaign which, in turn, drove an industry that now sells millions of units each year. Although Dean was on the team that helped shape IBMs PC business, he lauds the company for selling its computer business to Lenovo in 2005. While many in the tech industry questioned IBMs decision to exit the business at the time, its now clear that our company was in the vanguard of inDiAn OppOrTuniTies BeckOn fOr sOuTH AfricA South African companies are being urged by Business Unity South Africa (BUSA) vice president Brenda Madumise to become more active in the Indian market. She pointed out that some 102 Indian companies were now active in the South African market, but that South Africa based businesses needed to increase their presence in India. We need to do much more business in India, she said. BUSA and CII [Confederation of Indian Industry] have been working closely to enhance the business relationship between our two the post-PC era, Dean says. The PC is no longer at the leading-edge of computing. In contrast, Microsoft Corporate Communications Chief, Frank Shaw, says he likes to think of the current state of computing as the PC-plus era. Well continue to lead the industry forward in bringing technology to the next billion people on our planet, Shaw says. Well do that as we always have, by working with our partners to deliver amazing experiences to individuals and businesses.

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Muse business news com


of the Business Womens Association. This year has provided economic transformation and job creation. The government wants to see a visible change for women from all walks of life, he said. We are however concerned that the target of 10 per cent for female participation in mining was not met, as the recent Mining Charter review has indicated. This means that more work must be done to open this sector for women, he added. The government has been well-aware that women entrepreneurs remain on the periphery of the national economy and has encouraged women to enter industries that were traditionally dominated by men, including mining. pepkOr increAses eMpire South Africas biggest clothing retailer, Pepkor Ltd., will open stores in Nigeria as Chairman Christo Wiese expands his business empire across Africa. We will invest about R100 million in the first phase of operations, he said. Africa is awakeningits a huge market of almost a billion people, Since 1991, Indias gross domestic product

NEWS IN REVIEW

countries. Successive South African governments since 1994 have prioritised relations with India and now we need to see this come to fruition. has gone up by a factor of four and the countrys per capita income has more than doubled. Foreign direct investment in the country since 2000 has reached $200 billion. Indias integration with the global economy has surpassed all expectations, said CII DirectorGeneral Chandrajit Banerjee. The country has a young population and an expanding middle class. There is an opportunity for all South African businesses to participate, and participate profitably, in Indias development story. sisTers sHOulD DO iT fOr THeMselVes President Jacob Zuma has said that statistics showed that more progress needs to be made to advance women in the business sector. Only 4.4 per cent of the chief executive and managing director positions were held by women. In addition, they held 15.8 per cent of all directorships according to the 2011 Women in Corporate Leadership Census

SEPTEMBER 2011 The African Business Journal

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ming out of africa


with huge resources and a young population. People spend when theyre young and its a growing market; there is enough for everybody. Wiese, ranked as the fourth richest South African on Forbes Magazines list of billionaires, with a net worth estimated at $1.6 billion, controls Shoprite Holdings Ltd., Africas largest grocer, and holds more than a third of Brait SA (BAT)the biggest South African private equity company. The 69-yearold is relying on economies in Africa expanding faster than the U.S. and Europe. Pepkor will follow the example of Shoprite, which has 76 supermarkets in 15 African countries outside of South Africa. Pepkor will then expand gradually in different African regions, adding to its 2,800 stores in South Africa, which include the Pep, Ackermans and the Best and Less brands. Pepkors expansion follows a reorganisation of the retailers shareholding in June with the intention being to let its shareholders take a

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Muse business news com

NEWS IN REVIEW

long-term view, while not having the pressure of having to close their investment in the company. AgenTs giVen unDerwATer pAyMenTs Ferrostaal, the main company in the consortium that sold South Africa submarines as part of the controversial 1999 arms deal, paid more than $40 million to agents in South Africa. Its one of the key findings to emerge from a controvercial internal-compliance investigation compiled for Ferrostaals new management by international law firm Debevoise & Plimpton (D&P). Other key discoveries within the South Africa section of the report, highlight concerns about Ferrostaals business relationship with Chippy Shaik, the former chief of acquisition who played a central role in the tender process. It shows the German companys disdain for the multibillionrand offset obligations that were supposed to flow from the weapons purchases and reveal the two main agents were Greek tycoon Tony Georgiadisknown for his involvement in the Frigate deal and for his association with former President Thabo Mbekiand Tony Ellingford, a former defence-industry executive who was close to late defence minister Joe Modise. A number of former Ferrostaal executives are facing criminal and civil actions in Germany relating to the companys widespread past use of payments to obtain business. The overall findings by D&P concerning Ferrostaals worldwide operations provide important

SEPTEMBER 2011 The African Business Journal

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ming out of africa


the Common Market for the Eastern and Southern Africa trade bloc. It was a move intended to extend quotas on the amount of sugar imports from the region. Trade and Industry minister Dr Mukhisa Kituyi went to great lengths to convince Comesa members and many stakeholders that by 2011 there would be a streamlined sugar industry complete with imports from the region, but it hasnt materialised. Kenya now wants yet another extension, beyond the coming years deadline. In the previous agreement from other Comesa nations, Kenya was to tax all but 200,000 tonnes, while opening the sugar market to imports at the rate of 40,000 tonnes per year. background to the 36-million in payments for the South African deal, though the law firm characterises these as having significant red flags but lacking evidence of criminal conduct. sweeT pOlicies neeDeD TO sTrengTHen kenyAn sugAr inDusTry Three years ago, Kenya requested partners in The countrys development of a vibrant sugar industry has been hampered by the high cost of production, making its sugar uncompetitive. It has to rely on the Comesa countries, but has been slow to open up the market, fearing that the sugar industry, which supports the western Kenya economy, could collapse under the weight of cheap sugar imports.

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Muse business news com

NEWS IN REVIEW

SEPTEMBER 2011 The African Business Journal

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ming out of africa


While the sector has in recent years witnessed some significant reforms, such as proper management of sugar factories, this has yet to have a major impact on the competitive nature of sugar. As a nation, Kenya is desperate to safeguard the industry, but the deadline cannot be extended indefinitely. AnglO AccuseD Of sOuTH AfricAn BiAs Cynthia Carroll, Anglo American CEO, has put up a spirited defence of South Africa after queries from mining analysts. Her passionate response followed Anglos formidable 45 per cent increase in core operating profit in the six months to June. Bank of America Merrill Lynch analyst Jason Fairclough had queried Anglos continuing heavy dependence on a South Africa that he claims is wracked by a protracted mine nationalisation debate. As impressive as all the progress might be towards the company growing outside South Africa, there is no getting away from the fact that half of Anglo remains in South Africa, insists Fairclough. Carrolls responded: Anglo is receiving consistently good readings from the South African government and it continues to believe in South Africa as a place to trade. We are rightly proud of our status domestically but we also have several exciting ventures overseas and are always looking for new international projects. Contrary to popular belief, half of the companys $15 billion worth of near-term approved projects will actually be in South America, including the Barro Alto nickel, Los Bronces copper and Minas Rio iron-ore projects. There are also lucrative ventures in the form of the Collahuasi and Quellaveco copper projects, in Chile and Peru respectively, and the Cerrejon thermal coal project, in Colombia. TAB

AfricAs premier export

After weeks of uneventful friendlies and European competition qualifying fixtures fe ones ever heard, the buzz and pulsating action of the English Premier League has re a healthy contingent of African footballers will be exhibiting their skills in front of s most passionate sports fan. TABJ looks at eight African exports likely to make their

PHOTO CREDITS: naIPung / SHuTTERSTOCk.COm

speciAL report

ts

eaturing teams no eturned. Once again some of the worlds mark this season.

029

30

SPECIAL REPORT African Footballers: africas premier exports

Asamoah GyanSunderland
Asamoah Gyans heroics in last years FIFA World Cup fired him into the media spotlight and helped Ghana to the quarter finals of the tournament. Sunderland boss Steve Bruce shelled out 13 million to French club Rennes for his services and the 25-year old has been busy trying to repay the gaffers faith ever since. Bruce has had a busy summer and has signed the young Egyptian winger Ahmed Elmohamady, following a successful loan spell with the Wearside club last term. In January, the Mackems also signed Beninese playmaker Stphane Sessgnon as a player who Bruce says can play on the left, on the right, through the middlehes lightning quick and hes a match-winner. But it is the skill and experience of Gyan that the club is most likely to rely on this season as the big spenders look to improve on last years underwhelming tenth place finish.

Christopher SambaB

The loyal and dependa Manager Steve Kean is The Blackburn Rovers three relatively uneventful

pointing run in to the 2010

The powerful defender re

come an automatic first-team

Alex SongArsenal

Arsenal defender Alex Song was one of the Gunners

last term and will no doubt be striving to help the N

first trophy since they beat Manchester United in the

Song made his international debut for Cameroo Arsne Wengers side.

Arsenal from French club Bastia in 2006 following a

Having lost their star player Cesc Fabregas to Spa

summer, and with French midfielder Samir Nasri on th

SEPTEMBER 2011 The African Business Journal

31

Blackburn Rovers

able Christopher Samba is facing a season of uncertainty at Blackburn Rovers following the clubs disapunder pressure to deliver from both the clubs impatient fans and its colourful Indian millionaire owners. captain started his career in France, before moving to German capital Berlin to join Hertha BSC. After years, Samba was signed by former Rovers manager Mark Hughes for just short of 500,000.

0-11 season.

epresents Congo and has played 20 times for the Red Devils. Since joining Blackburn in 2007 Samba has be-

m pick and has made more than 140 appearances.

s most consistent players

the club Arsenal, have found themselves craving stability as the 13-times English champions head into a potentially tough season. Song is one of several African players Wenger is hoping to utilise as he aims to add strength to his young skilful side. Recent 10.5 million signing Gervinho, a Cte dIvoire international, and last seasons acquisition of Moroccan striker Marouane Chamakh could go some way towards meeting the expectations of the clubs frustrated fans.

North London club win its

e 2005 FA Cup Final.

on in 2005 and signed for

a successful loan spell with

anish giants Barcelona this

he verge of leaving

32

SPECIAL REPORT African Footballers: africas premier exports

Dickson EtuhuFulham
Plying his trade on the banks of the Thames in West London, Dickson Etuhu has proved himself to be a talented and versatile defensive midfielder during his lengthy spell in the English Premier League. The former Nigerian international has spent his entire career within the English league system and following spells with Manchester City, Preston North End, Norwich and Sunderland, the 29-year old seems to have found his most consistent form at Craven Cottage. Etuhu was part of the starting XI when former manager Roy Hodgson took the club to the final of the 2010 UEFA Europa League and after another relatively successful year under Mark Hughes last season, he looks likely to play a key role this term under the recently appointed Martin Jol. The Fulham midfielder was part of the Nigerias squad that failed to set the world alive at last years World Cup, but has since quit international football after falling out with Super Eagles boss Samson Siasia.

Peter OdemwingieWest Bromwich Albion


After starting his professional career in Nigeria for Benin Citys Bendel Insurance

Peter Odemwingie has since played in Belgium, France and Russia, before being s

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

The forward finished his first season in England as the Baggies top scorer wit

SEPTEMBER 2011 The African Business Journal

33

Benot Assou-EkottoTottenham Hotspurs


sive unit. The brutally honest Benot Assou-Ekotto once said in a U.K. newspaper interview that he left French Club RC Lens because he would earn more money in England. Despite his unorthodox approach to interviews with the British press, the Cameroon international has won over fans of North London club Tottenham Hotspurs with a series of uncompromising yet stylish displays on the left side of Harry Redknapps defenAs part of the Spurs team that qualified for the Champions League two seasons ago, Assou-Ekotto will no doubt be a key figure in this season campaign as the club looks to restore its top-four status. His international career has taken off in the past three years and the defender played every minute of Cameroons three games in the 2010 World Cup.

and in recent weeks has been linked with moves to Premiership rivals Tottenham and Wigan. Football Club, Despite being born in Uzbek SSR, USSR and raised in Russia, Odemwingie was forced to deal with racist abuse from his own fans during his time with Lokomotiv Moscow. Odemwingie, who opted to play for Nigeria, was also eligible for a call up by the Russian and Uzbek national teams.

signed by for-

ummer.

th 15 goals

34

SPECIAL REPORT African Footballers: africas premier exports

Yaya TourManchester City


Arguably the most impressive of Manchester Citys multi-million pound signings last season, Yaya Tour scored both the winning goal against city rivals Manchester United in the semi-final of the FA Cup, and the winning goal in the final against Stoke. In scoring the winning goal at Wembley, Tour brought Manchester Citys fans their first taste of silverware since 1976. Tour joined Manchester City from Barcelona in July 2010, when he linked up with his elder brother and former Arsenal defender Kolo Tour. The pressure is on Roberto Mancinis Manchester City to outperform last seasons successes, and with Champions League football on the cards Tour looks set to play pivotal role in what could be another history-making season for the blues half of Manchester.
PHOTO CREDITS: AHMAD FAIZAL YAHYA / SHUTTERSTOCK.COM

SEPTEMBER 2011 The African Business Journal

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Didier DrogbaChelsea
He may be coming towards the end of his tenure as Chelseas first-choice striker following the 50 million arrival of Spaniard Fernando Torres midway through last season, but no list of Africans making their mark on Englands top league would be complete without Didier Drogba. Known in his native Cte dIvoire for his humanitarian commitments, the countrys all-time highest goal scorer has even found himself in Time magazines 100 most influential people for his role in the countrys peace process. His medal tally includes three Premier League titles, three FA Cups and two League Cups, and he also has captained Cte dIvoire at two World Cups (2006 and 2010). At the grand age of 33 it would be wise not to expect the same fireworks as hes provided in previous seasons, but if Torres continues to struggle in his quest to hit the back of the net, there can be no doubt that Drogba will continue to pile the pressure on the Spaniard, whenever he gets his chance. TAB

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

pArT T wO

speciAl repOrT

a!

T O

38

SECTION Title

HAppy BirTHDAy (1981)


By sTeVie wOnDer
American civil rights activist Martin Luther King. For Stevie i

Contrary to popular opinion this Stevie Wonder foot-tapper i

celebrates a birthday. Indeed, it is a record that was original

was happy to venture into the Cinzano-drenched nightclub o

ren
references to heroic figures of

Rap legend Afrika Bambaataa, or Kevin Donovanas his parents prefer to call

which earned him a life-changing trip to Africa. A couple of years after his breakt

to create this back-spinningly electronic, politically motivated and percussio

wAlk like An egypT


By THe BAngles
girl group from America had brought archaeology involved thrusting your head back and forth using

The Bangles are possibly the first and last band to b

dance which responded obediently to the record ti

AUGUST 2011 The African Business Journal

39

isnt just a frivolous novelty tune that restaurants play every time a guest t represented a continued departure from his funk and soul pomp. At this time he

lly designed to celebrate the monumental achievements and legacy of African-

of 1980s pop, instead.

negADes Of funk (1983)


By AfrikA BAMBAATAA & sOul sOnic fOrce
the past and influential icons of contemporary street culture.

l himchanged his name after he won a writing competition,

through single in 1981 he collaborated with Soul Sonic Force

on infused hip-hop treat. The triumphant lyrics make regular

TiAn (1986)
to the masses in a way that no one could have predicted. The song also gave rise to a daft your neck to exaggerate the movements.

base one of their records on ancient cave drawings. A relentlessly catchy tune, the all-

itle, often with embarrassing results. Popular at weddings and birthdays the choreography

TAB

Could water w

wA

pOliTics

worries spill into war?

ATer wArs

041

42

POLITICS Water Wars

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43

Waterto those who have it, it seems in plentiful supply. Safe drinking water, however, is still denied to one-sixth of the worlds people. as Somali plunges into famine TABJ ponders whether the next great war could be over something as seemingly trivial as water.
wHeTHer iT is for drinking, cleansing, industry or agriculture water has metaphorically, spiritually and physically transcended borders, religions and nationalities. Could something as sacred as water really provoke widespread killing? The idea of going to war over this most fundamental of human rights is not an image most can very readily conjure. Yet, for manyincluding Egyptian diplomat Boutros Boutros Ghalithe concept of violent, large scale conflict over water is a clear and present danger. The former UN secretary firmly believes that many 21st century wars will be fought over water. He reasons that wars have been waged over other natural recourses, such as oil, so why not water?

context of water could mean a low-tech, unsophisticated battle between resource poor, economically unsound nations. It could be guerrilla in its natureeven between civilians driven to desperate measures by drought or famine. Organized military conflict, however, is also a serious possibility. Indeed, governments which are concerned about a breakdown in communication, or another country redirecting water resourcesas has happened between India and Bangladeshmay seriously consider going to war. The philosophy being that the casualties inflicted while fighting to protect or reclaim an established water source would be considerably less than those incurred as a result of not having a supply of clean water. At present the international water scene is one of relative peace. Countries tend to cooperate when it comes to sharing water resources. The level of comradeship, however, is hard to ascertainit maybe just a case of sharing because they dont really know who owns it (land boundaries tend to be established whereas water, by its very nature, is hard to pin down). Despite this relative harmony where water is concerned, the increasingly limited supplies have given rise to tensions, and some international relationships are beginning to fray or get even worse than they already are.

Hard to swallow
The term Water Wars has been around for many years (there is no definitive explanation regarding its origins) and does not necessarily refer to conflict on a grand scale. War in the

44

POLITICS Water Wars

Current water shortages are occurring for a number of reasons. The global population is booming and, in spite of an increasingly brutal AIDS epidemic, this is especially the case in Sub Saharan Africa. Numbers of people are growing at a rate of three per cent every year and, since the 1960s, the population had doubled. In 20 years it will have doubled again. While other countries have adopted a more Western paradigm Sub Saharan Africa still produces comparatively large families.

highest Nile basin users by creating four damns in the last century. In contrast, Ethiopia uses only one per cent of the Niles resources despite its tributaries providing the Nile with 86 per cent of its supplies. Perhaps the only reason that conflict has been avoided is that neighbouring states do not have the military recourses to enter into any kind of organized conflict and therefore succumb to the bullying tactics of richer nations. Water has already contributed to conflict and could be cited as one of the main reasons for the 1967 Arab-Israeli war. In 1964, Israel had started to take large quantities of water for its National Water Carrier project. The Arab states responded by diverting water before it entered Israel, prompting Israeli defense forces to carry out a series of attacks on the diversion works.

Many rivers to cross


Some of the nations most at risk use the basin area of the Nile. The longest river on the planet, it courses through ten countries in north-eastern Africa, from Rwanda to Egypt. Water quality throughout its stretch varies from perfectly drinkable to life-threateningly polluted. Contamination occurs through the effects of industry, agriculture and household waste. Egypt has a historical claim to the Niles resources, having acquired its rights several hundreds of years ago. Although this has been the focal point of speculation, it is nevertheless assumed that any reduction of Egypts supplies, or interference by upstream countries, would be seen as highly provocative. Sudan has been the most active in securing its place as one of the

Water fall
The Middle East, which constitutes five per cent of the global population, shares only one percent of the usable water supply. This has frequently added significantly to the omnipresent hostilities between Israel, Jordan and Palestine. Although all three rely on the River Jordan, it is Israel that controls and frequently limits the supply of water to its neighbours. Although oil has been traditionally the most

SEPTEMBER 2011 The African Business Journal

45

fiercely protected commodity; provocation and global warming could prove a lethal cocktail, making this area a prime location for the first all-out water war. With these examples in mind it is interesting to note that leaders of both Egypt and Israel (President Anwar Sadat and King Hussein respectively) have in the past claimed that they would only go to war with each other over water. A further and undeniable threat is environmental change, including an unpredictable climate, erratic rainfall, drought and the negligible performance of underground water supplies known as aquifers. Often this will escape attention because the damage cannot actually be seen. It is not only poor countries that have removed a disproportionate amount of under-

ground water. In Arizona they are taking water at such a rate that only half will be naturally renewed. The invasion of natural underground supplies will almost certainly continue as previously under-developed countries enter a period of increased industrialization. An additional and constant environmental threat is, of course, the depletion of natural resources through the evaporation of rivers and lakes. Ultimately, there is a very real chance that the combination of nature, greed, ignorance and lack of foresight could result in catastrophic consequences, including war. It is possible that the global community is guilty of burying its head in the sand while the very source of life trickles through its fingers. TAB

046

OuT O cOM

Business & culTure

Of THe MfOrT zOne

48

BUSINESS AND CULTURE Teacher in africa

after years of teaching business students in the u.K., rupert Freeman decided his knowledge could be used to make a difference in africa. In the past year he has been delivering life-changing lessons, while also learning a few of his own.
iTs Been A difficult time if your name is Rupert. As one of this exclusive club attempted to save his grizzly empire, penniless Rupert Freeman was selflessly sharing his knowledge with aspiring, but less fortunate students. TABJ talks to a man who arrived in Egypt to teach business, only to find himself in the middle of a bloody revolution. TABJ: Why did you decide to up sticks and leave your cosy job in England?

ruperT freeMAn: To be honest, I was concerned that Europe was heading for financial meltdown, and schools in the U.K. would be seeking costcutting opportunities (redundancies, pension cuts, reducing the number of white board markers, that kind of thing). Ive been proved right to a certain extent, although admittedly issues in Egyptlike the overthrowing of a tyrannical regimehave put those initial concerns into some perspective! TABJ: What was so appealing about Cairo? rf: Its a different continent, which has an increasing middle class population and average GDP, resulting in better salaries, reasonable tax payments and good working conditions.

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TABJ: Why do you find teaching business so rewarding? RF: It provides an opportunity for me to pass on my extensive experience in business, accounting, marketing, property and sales, to young Egyptian people, while also inspiring entrepreneurship. This will, in turn, improve economic conditions and pave a way for future generations of business people. Its incredibly important that I leave a lasting legacy. I am determined to release potential and these students have it in abundance. They want to live better lives, earn a good wage and provide for their families.

teaching. Typically, Egyptian teaching methods are based on repetitive learning, but I aim to use a more varied and active pedagogy. Keeping people engaged is vital and prepares them for all kinds of different working environments. TABJ: Have they got the potential to succeed in the cut throat world of business? RF: Cairo has historically been a centre of trade between Europe and the rest of the world, with the Suez Canal being the mid-point of the worlds shipping activities. As a result of this historic hub, business studies is the most popular subject at my school, and all these pupils have a natural curiosity about sales and business. It has been a real privilege to be able to nurture this enthusiasm into something dynamic, not only for the individual, but for the whole city. TABJ: When did you realize that the scent of revolution was in the air? RF: There were rumours milling around the staff room shortly before the real problems started, and the British embassy sent a strangely vague email to expats advising them not to go down town. It was clear something very serious was unfolding when we witnessed terrifying gun fights, screams

Its incredibly important that I leave a lasting legacy. I am determined to help release potential and these students have it in abundance. They want to live better lives, earn a good wage and provide for their families.
TABJ: How responsive have your students been so far? RF: My students are very keen to emerge from their, often very difficult, circumstances. They are really receptive to British standards and techniques in

50

BUSINESS AND CULTURE Teacher in africa

and bloodshed at the end of the road we live on. At this point the caretaker of the building dusted off his anachronistic World War II machine gun and all hell broke loose. We hid in our rooms and hoped that eventually we would be picked up and taken to safety. It was surrealin a situation like that you go into a state of shock; your brain simply cannot comprehend what is happening. I do remember briefly thinking, I might actually die here. We were witnessing history, but when your life is under threat you start to question the wisdom of your decisions. It was a warzone, the people were determined to kick the government out and I had no idea how it was going to end.

building dusted off his machine gun and all hell broke loose.
TABJ: What action did the school take to ensure your safety? rf: The school had some fairly odd, but ultimately useful, contingency plans in place, which involved taking us in convoy to the beach resort of Sharm el Sheik. Bizarrely, they bolted us into an all-inclusive hotel until events subsided. The only thing to do all day was eat from the unlimited buffet, until our stomachs begged for mercy. At this point I would lie down before reconvening for the next marathon feeding session. It was very weird to know that crimes against humanity were happening a few miles away and we were just eating until it all died down. All schools in Cairo were closed for six weeks, but I heard that some expats werent taken away from the trouble and they just had to wait.

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

SEPTEMBER 2011 The African Business Journal

51

TABJ: Did you ever consider leaving? rf: Within a few weeks the rebels had conquered ex-president Hosni Mubarak and it seemed that the country was entering a brave new chapter. In hindsight, the Egyptian revolution was relatively short compared to others, and we decided that to leave would be unfair on a school, which treated us so well during a very dangerous period. I also owed it to the students to return and finish the job I started. Its this kind of incident that tests the mettle of a passionate teacher, and Im glad that I stayed.

rf: Film, social discussion, music and even graffiti have become much more open. Shortly after arriving back we attended a film night with a French Revolution theme. This would have been impossible only three months earlier. TABJ: What has been the most rewarding aspect of your job? rf: I thrive on teaching young people the mechanics of capitalism and the potential of enterprise. I have grown to love it in Egypt and to see the people of this incredible country enjoy a sense of freedom and hope has been truly wonderful. The experience of the revolution has been unforgettable and made me realise that my mission here has only just begun. I dont have any regrets. TAB

Within a few weeks the rebels had conquered ex-president hosni Mubarak and it seemed that the country was entering a brave new chapter.
TABJ: How much as Cairo changed since the old regime was overthrown?

fOOD & Drink

052

sODA king

Sparkling performance

54

FOOD & DRINK Soda King

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Soda King puts the fizz into the carbonated drinks industry by providing a veritable kaleidoscope of refreshing, revitalizing and irresistible beverages.
As sODA kings name suggests, it has firmly established itself as pop royalty in stores throughout Africano mean feat when you consider who theyre up against! Its thirst quenching lines cover every conceivable taste, which is just as well in a country where enjoying the great outdoors is a passion and hydration is virtually a way of life.

56

FOOD & DRINK Soda King

Thirst for excellence


The company began its rapid climb to the higher echelons of the drinks industry after purchasing the intellectual property, trademarks, knowledge and recipes from a different organisation, eight years ago. The previous owners had been trading since 1997 but after the takeover in 2003 the company totally reinvented itself as Soda King. After assuming its position on the throne it set about creating a drinks emporium that offers sensational choice and an unrivalled commitment to production. It was an ambitious manifesto, but they havent bottled it (well, in a way they have!).

Remarkably the companywhose headquarters are based at picturesque Camps Bay, South Africastarted with only a few members of staff. This workforce has now risen considerably, and Soda King runs a very smooth operation, using their streamlined and talented workforce as efficiently as possible. Consequently, the guys are a closely knit outfit and as well-oiled as the machines they operate.

Drink up
Soda King has built its distinctive brand through the sheer variety of its products, often venturing

SEPTEMBER 2011 The African Business Journal

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into new, unchartered areas. They currently boast 15 winning flavours, from traditional favourites like sparkling orange, raspberry and lemonade, to more exotic concoctions like coco pine, granadilla and red grape. Other notable hits include cream soda, apple and iron bru. Unsurprisingly, the drink which has been crowned as the most enduring and popular is King Colaa classic riff on the grand old master. Although the company is relatively small compared to its famous rivals, in terms of flavours, combinations and formats it packs a formidable punch. It has certainly proved popular with con-

sumers, who have enjoyed the interesting alternatives to usual soft drink selections. Lets face it everyone should try passion fruit and lemonade at least once in their lives! Under the Aqua King banner it also provides a range of healthy and rehydrating bottled water options. Filtered and purified, these drinks offer the more discerning palette a choice of crystal clear still, sparking or flavoured waters. Its another example of the companys devotion to providing everyone in the country with a drink they will relish consuming. Technological advancements have also

58

FOOD & DRINK Soda King

allowed the company to produce pure non-alcoholic malt drinks without having to go through a brewing process. This ensures a constant and considerable supply of a very popular drink, without any arduous processes.

long-term partnership arrangements that bring bottling expertise and knowledge to the local community at affordable prices. The franchises have enabled the Soda and Aqua King brands to become ubiquitous throughout the country, creating a brand with real presence. It also manifests those sacred virtues of customer trust and brand loyalty as more people are introduced to the companys array of temptations. This development is very important to the steady growth of the company as Managing Director Gian Mani explains: Expanding into Africa is an evolving process that requires adaptation to changing circumstances. Were really pleased with

Fruit of the franchise


In addition to the beverages line Soda King also procures, supplies and installs complete turn-key bottling plants for businesses on the African continent. This occurs under a franchise agreement that allows outlets to take advantage of Soda Kings brands, training, reputation and continuous supply of concentrates. These tend to be

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GRANMALT MALT PRODUCTS


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

Many thanks to Soda King for the great partnership!


www.granmalt.com sales@granmalt.com

the gradual expansion and still maintain big ambitions. Its an exciting platform to do business, with a vibrant economy and great potential for the future. We have also have a proven track-record of delivering the franchise package on time, with continuity of requisite raw materials, equipment, strong brands and complete training of franchisees in all aspects of the business, from technical and production to quality control, he added.

the factories are equipped to produce, market, sell and distribute the complete range of soft drinks, through the highly successful franchise system. With the taste of success as sweet as some of their drinks Soda King plans to open at least another 15 franchises over the next three years. It is also looking at the possibility of expanding outside Africa and eventually becoming a globally recognised brand. It is perhaps the companys slogan that sums up what the company wants its customers to retain and its drinks to encouragea zest for life. TAB www.sODAking.cO.zA

Bubbling
Since its conception Soda King has expanded from one factory, in 2003, to seven across South Africa and other African countries. All

cHilTern f
Core, what a

fOOD & Drink

fArMs

lovely pear

061

62

FOOD & DRINK Chiltern Farms

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a fruit business is only as good as the next apple it selects. For Chiltern Farms each and every one is as delicious as the last.
geTTing yOur fiVe fruit and veg a day can either be slightly arduous or, if youre very lucky, a pleasurable indulgence. There is nothing like sinking your teeth into the sweet and delicious flesh of a crunchy apple or, come to that, a seductive pear. It is with this knowledge that Chiltern Farms prepare their cherished orchards, insisting that the fruit of their efforts are matched by the taste of the fruit they so lovingly produce.

Mudge sticks
For over half a century Chiltern Farms has been run by the devoted and passionate Mudge family. After originally being purchased by their father in the 1950s the operation is now run by Nigel and Des and, like the previous branch of the family tree, they are mad about apples and pears. Nigels son is also involved in the running of the farm, making it three generations of Mudge to join the Chiltern production linea veritable dynasty. The apple certainly doesnt fall far from the tree.

64

FOOD & DRINK Chiltern Farms

The original land consisted of 220 acres which was carefully nurtured to create some formidable orchards. The combination of fertile ground, attention to detail and unique conditions create apples and pears of extraordinary class. Many of those original trees continue to spawn irresistible fruit to this very day.

more countries and, perhaps most impressively, adding a packing house to its facilities. This resulted in the good folk at Chiltern Farms being able to regulate the life cycle of an apple from the exact second it starts to form to the triumphant moment when a customer takes their first bite. Growing, picking, packing and providing pure joyquality control doesnt get any better than this. Multi-national companies should perhaps take note that it is possible to grow a company to grand new heights without sacrificing the family ethos that set the standards in the first place. Des Mudge explains, Our father showed such nous and determination to create the company,

Fast and juice


Over the years Chiltern Farms has considerably expanded its operations. In 1989 things really began to take off as the ambitious brothers began to make their vision a realityincreasing the amount of produce, exporting greater quantities to even

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Because LA Staal is the steel construction company where you will nd experts you can rely on
The design, manufacture and construction of steel structures for factories, warehouses, packing sheds, mezzanines, cellars, cold storage complexes, lean-to structures, aircraft hangars and cooling tunnels are our areas of expertise and what we are trusted for by hundreds of satised clients. We look forward to working side by side with each new and existing customer so we can achieve the best possible solution in the most cost ecient way. And we proudly invite you to hold us to our promise of quality, customer satisfaction and ongoing after-sales service in everything we do.

that we always wanted to follow in his footsteps we had grown up on the farm and it was in our blood. When Nigel and I had the chance to take over the management we recognised the potential for expansion, and now the company exports a variety of fruit all over the world. In addition to the continued production of apples and pears Chiltern Farms now has a 16 hectare plot set aside for the cultivation of Sharon fruit. This increasingly popular, coreless and sweet fruit has been recognised as an antidote against heart attacks and is exported in large consignments nationally and internationally. Another notable fruit to take its place among the resplendent Chiltern acres

are blueberries, which are vociferously consumed in the United Kingdom. Even in tough times Chiltern Farms apples or pears or, indeed, Sharon fruit have risen above adversity to provide nourishment and good health to millions of fans worldwide. When you tuck into a rewarding treat from the fruit bowl suddenly credit crunch takes on a whole new meaning. TAB

uD Trucks
066

MOTOr HeAD

TrAnspOrTATiOn

68

TRANSPORTATION uD Trucks

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

As wiTH Any aspect of motoring, it helps if you know what youre doing. You certainly wont find people at UD Trucks peering under bonnets and scratching their heads. Indeed, when a company

has been passionately building, improving, nurturing and generally tinkering with engines as long as this company, you know that your journey will be a smooth one.

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70

TRANSPORTATION uD Trucks

In reverse
UD Trucks first hit the road back in 1935, when the company was founded in Japan by a German diesel enthusiast called Kenzo Adachi. The business began by manufacturing diesel engines in Tokyo under the name of Nihon Diesel Industry. Over the next 13 years the company would release several new models, while trading under a number of different names. In 1953 the ground-breaking Uniflow scavenging diesel

engine was launched and five years later, Minsei Dieselas the company was then knownwas acquired by Nissan Motor Corporation. At this point the UD Trucks Corporation was born and the company was firmly established as one of Japans leading diesel manufacturers. The company continued to break new ground and in 1973 became the top heavy-duty truck manufacturer in Japan. By 1984, Nissan Diesel trucks were exported to 140 countries worldwide.

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TRANSPORTATION uD Trucks

African odyssey
UD Trucks Southern Africa has enjoyed a proud history of success since it was established in 1962. It is easily UD Trucks Corporations top market outside Japan. Over the years, the company has built a strong reputation as a credible and successful truck supplier, boasting unequalled flexibility in the industry. In 2002, Nissan Diesel South Africa (NDSA) was formed, separating the company from Nissan South Africa in the process. During the following year, the company moved all its facilities to new premises in Rosslyn, underlining its

independence and setting the stage for a new era in which the company could focus entirely on the trucking industry. General manager of corporate planning and marketing Rory Schulz thinks that the UD ethos has been instrumental in their African expansion. Through innovative engineering, aimed at generating benefits for people and the environment, UD Trucks has applied the technologies that it has amassed in the diesel engine field, to produce an even greater range of comfortable, safe and environmentally friendly vehicles, he said.

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74

TRANSPORTATION uD Trucks

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

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TRANSPORTATION UD Trucks

Johannesburg

21 Brunel Street Tulisa Park, Johannesburg, 2197 Tel: (011) 613-1070 Fax: (011) 623-1097

Unit 4, Henton Park, 25 Stella Road Montague Gardens Cape Town, 7441 Tel: (032) 555-1239 Fax: (021) 555-1278

Cape Town

Durban

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

info@aerotruck.co.za

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

WE TAKE THE DRAG OUT OF TRUCKING

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Brand loyalty
UD Trucks Southern Africa only offer vehicles engineered, developed and rigorously tested to combat the unique terrain of the region. The company also continues to develop its footprint in the African market wherever fleets can benefit from its efficient design, state-of-the art technology, quality assembly and dependable support. The company places great emphasis on building long-term relationships with customers by providing ongoing support throughout a

products lifecycle. UD Trucks Southern Africas dealers remain committed to providing their customers with innovative transport solutions and service offerings, built on trust, in-depth industry knowledge and priceless technical skills. As part of its on-going commitment to the truck industry, UD Trucks Southern Africa continually engineers quality local options to meet its customers demands and to develop innovative products for the Southern African market and its unique conditions, added Rory.

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TRANSPORTATION uD Trucks

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TRANSPORTATION uD Trucks

UD Trucks Southern Africa currently has dealers in Angola, Botswana, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, Swaziland, Zambia, Zimbabwe and is currently investigating a number of opportunities for expansion across the region.

Suiting all needs


The Quon range is the embodiment of outstanding extra-heavy commercial vehicles, and has, since its launch, positioned the company at the forefront of the sector. Researched, developed and refined to suit local conditions, the Quon

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82

TRANSPORTATION UD Trucks

PRETORIA ENGINEERS

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

Established in 1931
SPECIALISTS IN TRUCK CHASSIS LENGTHENING AND SHORTENING

range has been specifically designed to provide customers with the best in heavy duty trucking. UD Trucks heavy commercial range is geared to achieve excellent fuel consumption, ensuring that a high average speed is achieved to boost productivity. The class-leading performance of these units is achieved by the unique combination of engine power, transmission and final drive ratios. With its proven flexibility and superb durability, this series is ideally suited to meet the needs of the distribution sector. UD Trucks Southern Africas range of Medium Commercial Vehicles not only adheres to Euro II

emission regulations, but continues to exceed the expectations of customers in various applications. The company takes great care to ensure that it provides a high quality product to sustain our objective of providing the highest possible level of durability.

Customer satisfaction
Built on a passion for engineering, reliability and customer relations, UD Trucks has always offered a competitive edge in a challenging market. The company is determined to adapt to the changing needs of customers and deliver

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UD Trucks staff is continuously trained in

We have the bus for you


Quality, Safety, Reliability & Innovation

accordance with the latest developments, equipping them to solve problems faster and assist customers in finding the right solution in the shortest space of time. With such endearing enthusiasm for trucks, engines and mechanical wizardry it appears that UD Trucks has many more landmarks to reach, proving that reinventing the wheel does have its uses after all. TAB www.uDTrucks.cOM

For further enquiries please contact Danie Human on +27 (0)11 412 2927 danie@busmark.co.za www.busmark.co.za

BUSMARK 2000

services and products that go beyond what is expected.

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

TrAnspe
The industrial

TrAnspOrTATiOn

ec

085

body builders

86

TRANSPORTATION Transpec

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Whether through customisation or modification, body building firm Transpec is providing its ambitious clients with solutions to suit their flourishing fleets.
As glOBAl Businesses look to invest in Africa, the role of local companies in supplying the equipment needed to boost growth is quickly coming into focus and gaining in importance.

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TRANSPORTATION Transpec

The South African commercial vehicle body building firm and trailer manufacturers Transpec is one such business profiting from the increased investment made in the continents industrial sectors. Established in 1985, Transpec has grown from a relatively small position within its industry to become one of the major players in South Africas body building and trailer manufacturing environment. Based in the eastern South Africa state of KwaZulu-Natal, Transpec is a body building firm that aims to work with its customers to provide those complicated, but effective transport solutions that tend to lead to repeat business, according to the firms Financial Director Rowan Alford. Whether its tippers, tankers, panel vans, semi-trailers or drawbar trailers, Transpec is able to offer its clients a broad range of services. Through the customisation of commercial vehicles the company is able to provide many applications required in the transport industry; from painting the cab and body to fleet colours to providing a hydraulic installation, the firm has been supplying its customers with top-of-the-line service for more than 26 years.

Since becoming a democracy [in 1994] there has been a lot more growth in the country, says Alford. The South African economy has, in general, performed pretty well and since that time weve grown by adapting and increasing the size of our production facility.

over the years, weve sustained the business by adding extra production capacity and by also diversifying our products in different areas of the transport industry and covering as many bases as possible.
Weve started tapping markets weve never worked in before and weve started working on a lot of agricultural transport equipment in both the sugar and timber industries, Alford adds. We also moved into the waste removal market in terms of bringing compacters online, and skip loaders and hook lifts, are some of the new products added to the range. On the construction side of the business, Transpec supply tippers and tankers, to a large selection of infrastructure building currently taking place in South Africa.

Growing alongside South Africas progress


The company has a rich history and from its main hub in Pinetown, has been able to react positively to a changing and volatile marketplace.

Into the African business jungle


Today, Transpec is integrating its ambitious targets

SEPTEMBER 2011 The African Business Journal DELFLOW (Pty) Ltd. Postnet Suite 62 Private Bag X1569 Glenvista 2058 Tel: 011 826 3443 Fax: 011 826 4340 e-mail: delow@telkomsa.net Reg. No.:2007/012011/07

89

We oer a range of services such as system design, manufacture of hydraulic and pneumatic systems, eld service, and repair of all types of hydraulic equipment. Delow are importers of the following brands: Duplomatic Oleodinamica Spa- directional valves, pressure control valves and pressure compensated vane pumps. Aber - PTOs, PTO pumps and all truck hydraulic-related products. Ronzio Oleodinamica Spa - aluminium gear pumps group 1 to 3. VPS - Brevini control valves SAM Low speed hydraulic motors

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TRANSPORTATION Transpec

for growth with the developing economies in countries directly north of South Africa. This year, about 40 per cent of our turnover is from the export markets, which represents a real turn around, says Alford. We were doing quite a bit of export into Africa in the early 2000s when the Rand was relatively weak and it was quite cheap to buy equipment. But it was in this period that I think we established ourselves as a supplier into Africa, he adds. We gained a lot of experience in delivering equipment into Africaespecially in markets where conditions can be quite challenging. Alford says that the companys main export

markets are moving beyond the countries it has traditionally serviced and into states in the central region of the continent, as well as neighbouring countries experiencing recent industrial growth. For example, in recent months the company has sold 15 sets of timber trailers in Tanzania, and has received an order for 20 sets of sidetipping trailers from Mozambiques coal sector. Transpec is also experiencing a growing demand from the agricultural sector, notes Alford, with equipment for the sugar industry being sought, which he claims is moving further north. Sugar growers are going north because its warmer and they can generate better yields, he says.

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But weve also found that our clients are approaching us after seeing our products in operation across Africa. Investment in infrastructure and construction in the region has led Transpec to attempt to tap into these industries. Alford says that the company is exporting a lot of construction-based equipment across Africa with road building projects in Congo and Malawi proving to be successful ventures for the firm. We are also collaborating with a large global company where we are working on the body of all the vehicles it is bringing to the region from Japan, remarks Alford. This means were moving into markets in places such as Zambia, Zimbabwe and across other parts of Africa. Theres a lot of movement into the continent, and I think it is where the next growth section is going to be. But even our own domestic market, despite having been a little quiet in the past couple of years, is beginning to rear its head again and is looking much stronger. This renewed market confidence is music to the ears of Alford, who says that both 2009 and 2010 were shocking years with low vehicle sales across South Africa. The companys ability to meet a diverse selection of demands has helped it overcome any problems it was susceptible to in the past two years.

Demands in our industry are often seasonal because of the different industries we work with such as sugar, says alford. What we do is move our production concentration to whatever the biggest demand at the time is. This has given us a lot of flexibility and by having a wide product range we have managed to keep our head above the water.
As heavy industry sharpens its focuses on the vast resources in the southern half of the African continent, Transpec has found itself in a comfortable position despite the difficulties associated with the global economic downturn. TAB

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The truck sto

TrAnspOrTATiOn

l Truck renTAls

ops here

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TRANSPORTATION Imperial Truck rentals

The word imperial conjures up a reassuring impression of authority, experience, reliability and trustprecisely why this company put their name to it.
THe yeAr 1975 was unforgettable in many ways. A blockbusting shark with a vendetta shocked a generation of cinema-goers into cancelling their swimming lessons forever, snarling young punk rockers The Sex Pistols played their legendary first gig and Arthur Ashe delighted the bookmakers by beating favourite Jimmy Connors at Wimbledon.

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While all this was going on plans were being laid out to form the company that would eventually become Imperial Truck Rentalsone of the leading vehicle hire companies in South Africa. Yep, it was a pretty vintage year.

it immediately saw success, resulting in a gradual enlarging of the fleet. As it became increasingly profitable the company started to obtain a wide variety of different vehicles for every type of job, establishing a reputation for specialising in all types of commercial vehicles from half tonne LDVs to huge articulated tractors. The company currently has over 1,300 vehicles on its books and this figure continues to rise. Imperial Truck Rentals supplies its vehicles on a supply and demand basis, with contracts drawn up immediately for long and short term periods. It also has some lucrative long term arrangements as a preferred supplier with major

Gear change
When the company was created by Percy Abelkop in those halcyon days 36 years ago, it began by selling used commercial vehicles. After recognising opportunities in the industry, however, it realised the long term prospects of renting their vehicles were much better. The new operation started on a small scale, with 15 vehicles and only two members of staff but

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100 TRANSPORTATION Imperial Truck rentals

Making Light Work of Extra Heavy Loads


24 Hour Roadside Assist 0800 008 800 www.udtrucks.co.za

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Built on a strong foundation of Ultimate Dependability, a passion for the industry and a professional approach to everything we do, UD Trucks Magnis Bloemfontein is committed to delivering services and products that go beyond the expected. As a name synonymous with quality trucking solutions and products since 1968, the dealership is dedicated to adding value to your business by facilitating vehicle purchases, and ensuring that our customers receive quality technical support and continued parts supply - on time and at a competitive price.

Please contact Graham Howes 071 607 9716 or Dennis Howes 082 293 8159
Product shown in photograph is for illustration purposes only, and is subject to stock availability.

Magnis
Bloemfontein
109 Fritz Stockenstroom Street, East End, Bloemfontein Tel: (051) 432-0280 www.magnistrucks.com

With class-leading operation performance, high levels of safety and a focus on driver comfort, UD Trucks Quon range offers the best in extra heavy trucking. The Quon range is powered by the proven reliance and economy of UD Trucks quality engine series, and delivers low fuel consumption through increased combustion efciency. A number of chassis variations are available to meet various load and road surface challenges, positioning the Quon range at the forefront of protable transport solutions.

102 TRANSPORTATION Imperial Truck rentals

corporations in South Africa. The workforce now runs to 200 permanent staff, but if a customer requires a driver or crane operator the company hires in a person to do that specific job. With this considered there could be up to 1,000 people working for Imperial Truck Rentals at one time. Some of the most popular vehicles with the best returns include crane mounted systems, eight tonne vans, tow lift trucks and refrigerated, light commercial, 4x4 and double cab vehicles. Service provision is a top priority and Managing Director Martin Breed thinks that reliability has been the key. Cementing customer relationships is

essential. We offer the best quality service, selection of vehicles and technical support and our record indicates that people appreciate it. They are assured of excellent service 24/7, and our fleet is available at any time. Were the only company that offer this level of commitment.

Good handling
Continuity has always been an important feature of the business which, since its inception, has had the same owners. At the beginning the company was entirely private before being listed in the early 1990s on the Johannesburg stock exchange and since then it has been trading as a public company.

The automatic choice.


to handle any load. And our cabs come in single or double sleepers. See, trucking is in our blood. It has always been and it will always be.

When youre in the long-haul, you need a truck that delivers. Take our Hino 700 range, which now sports prevent costly clutch degradation. Our engine derivatives range from 380 HP to 480 HP, offering you a range

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

TOYT139891/

JHB/E

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104 TRANSPORTATION Imperial Truck rentals

When founder Percy Abelkop retired in the nineties Bill Lynch took over and three years ago Hubert Brody took the wheel. The company is now managed on an entrepreneurial basis by a team of directors who are constantly looking for new business and increasing profitability. New growth objectives are set every year and the company regularly achieve, and surpass targets. Ironically, the global downturn has actually had a positive effect on the company. It was a rare occasion when the situation actually produced an incredibly impressive balance sheet. Breed explains, When the economy was in a downward mode during the recession there was

actually an improvement. While they waited for the recession to subside trucking businesses, instead of buying fleets, would rent vehicles instead. Last year when the economy wasnt that hot there was an improvement of over 48 per cent.

Well-oiled machine
Although the company is still most prominent in its native South Africa and still very much an advocate of the Rand, it has recently broadened its horizons further into Africa, with vehicles running in Sierra Leone, the Democratic Republic of Congo, Mozambique and Tanzania. With operations so dispersed the company

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106 TRANSPORTATION Imperial Truck rentals

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JOHANNESBURG BRAKE & CLUTCH


141 Albert Street City & Suburban PO Box 34047, Jeppestown 2043 Tel: 011 334-6934/5/6/7 | Fax: 011 334-5671 Email: jhbbrake@mwebbiz.co.za Our company has been a proud supplier to the Imperial Group since 1982, and we have both grown together since then into the prestige brands that we are today. We have always strived to supply excellent service, quality and price to Imperial workshops and thus have built a relationship which has been mutually benecial and allowed us to both succeed. Recently we have joined the family of Imperial Truck Rental by becoming a CBS franchise- part of Parts Incorporated Group- further cementing our close symbiotic relationship in the supply and demand chain, and proving our belief in the future of the winning team.

had to develop a state of the art and highly sophisticated computer system. The software determines the availability of vehicles, where they are running, who the customer is and, perhaps most impressively, the exact number of kilometres driven during each and every one of its thousands of assignments. Its all there on an integrated computer system. When the vehicle moves for instance from the branch into the work shop for repairs it will show on the system. No kilometre is will ever go missing, added Breed. As the company progresses with its expansion plans it will invest in many new vehicles,

continuing to offer the most extensive and cutting edge fleet of vehicles in Africa. These days everything has to be an emotional, mental and physical journey. For Imperial Truck Rentals, it really has been. TAB www.iMperiAlTruckrenTAl.cO.zA

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ng AnD sABle

110 CONSTRUCTION Sable Homes

PLOT 243 SWAVELPOORT LYNWOOD ROAD EXTENSION PRETORIA P.O. BOX 2155 ZWAVELPOORT 0036 TEL: 012 811 2777 FAX: 012 811 2780 PROJECTS@ELKON.CO.ZA REG NO. 1989/025338/23

KONSTRUKSIE & PROJEKBESTUUR

Elkon was founded in 1989 and specialise in upmarket housing developments. We have successfully completed projects of various magnitudes including factories, urban development refurbishments and cluster developments. The companys activities are based on 2 main functions namely construction and project management.
22

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

With the population rising and demand for new, original properties growing by the day, it is reassuring to know that Sable Homes love building incredible properties and great relationships.
In the current climate people are becoming increasingly reliant on their homes as places to relax, socialise, entertain, work and generally reflect their personalities. It certainly helps if the buildings themselves are welcoming structures that residents feel immensely proud of. As far as Sable Homes is concerned the happiness of their customers is the essential foun-

dation upon which the company continues to be built. Indeed, for almost twenty years it has been projecting its enthusiasm for housing through thousands of brilliantly functional and very attractive properties. Properties that inhabitants are proud to call home.

Scaling the heights


Back in 1993just as South Africa teetered on the brink of a brave new eraSable Homes was formed, creating its very own piece of history. Originally the business was founded by Sable Holdings Abcon Group in order to take on the residential development responsibilities of the

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Abcon Group of companies. Previously, the Group had only focused on commercial and retail developments, but were keen to venture into residential properties. After its initial success Sable Homes then expanded further to create Sabreal Property Management, which oversees the management of some of Sables projects and also handles rentals. With the first chapter of the companys history well and truly written Sable Homes now stand out as property developers with an unrelenting and determined focus on superior quality constructions that embody character, style and finesse. Its reputation has earned it a place as one of South Africas leading and most trusted property developerstransforming lives and making dreams a reality. Managing director Anthony Bonnett describes the companys ethos: We have built our reputation on quality, innovation, excellent standards and reliability in a highly competitive environment. It is through our spirit that we are creating not just fabulous homes, but rewarding lifestyles for our clients. With its vast pool of expertise, meticulous management and two decades of innovative design and successful project completions Sable also provide peace of mind for their clients. Bonnett explains: Over the last 20 odd years our

112 CONSTRUCTION Sable homes

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114 CONSTRUCTION Sable Homes

country has seen many development companies formed and fall by the wayside, as the property boom sprung up and crashed. Unfortunately this often means life savings and fortunes are lost owing to unscrupulous or mismanaged practices. With a name and history as big as ours, the property buyer wont lose any sleep.

From first contact, to the ceremonial handing over of the keys, we are instrumental in the entire process of building and acquiring dream homes. We pride ourselves on the skill and expertise of every staff member, added Bonnett. The company currently has 30 dedicated, highly skilled and experienced employees. They will be aiming to increase Sables market share in the Gauteng region, while cultivating its reputation as the property developer of choice for any potential home-buyer or investor.

Dedication
Since the beginning Sable Homes has always strived to constantly change and adapt products and services to meet the ever-changing demands of the property market. It is passionate about growing in harmony with new ideas, technology and expectations. The companys ever-expanding array of offerings features greenfield land development, estate development, sectional title homes and apartments. In addition its portfolio includes retirement and even golf estates. Sable has also recently started delivering complete building packages. Its prestigious position as the residential property developer for the Hazeldean nodal development in Pretoria East, Gauteng, is its most exciting, ambitious and lucrative to date. Hazeldean is a huge project which, on completion, will introduce an astonishing compendium of residential developments, shopping centres, office parks, entertainment venues, park-areas, schools and hospitals.

Green days
The Hazeldean development is one of the biggest green projects in Gauteng, and a substantial investment has already been made in ensuring that the project has a completely eco-friendly infrastructure. It is Sables policy to use only indigenous plants and trees, while maintaining existing wetlands and green areas in Hazeldean. In the course of other projects, notably Heron Banks Golf and River Estate, the siteswhich are situated along the Vaal Riverwere severely impacted through previous land usage and natural hydrological flows were impacted by sand mining, eucalyptus plantations, dirt tracks and informal agriculture. In response, Sable has realigned the structure of the wetlands to accommodate the restoration of precious local biodiversity. The

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company is passionate about making full use of the natural environment and is committed to sound ecological practices. Social media has also been fully embraced by the company, helping it to communicate with clients and established investors, providing them with useful information and updates. Sables refreshingly modern outlook means they will continue to be inspired by the very landscapes they are building on. Its a positive philosophy thats, quite literally, set in stone. TAB www.sABlehomes.co.zA
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Aon Africa is a leading provider of risk management, insurance broking and human resource solutions. With more than 15 offices in over 12 countries across the African continent, we are able to draw on our African footprint & the knowledge of our local experts to bring you cutting edge, relevant insurance solutions.

Contact Patrick Pillai +27 11 944 7299 www.aon.co.za

penBrO ke
electric dreams
The South african electrical specialist Penbro Kelnick has worked on some of the continents largest construction projects and is showing its big-name clients that quality remains king in times of financial hardship.
penBrO kelnick is one of South Africas energy systems and power distribution installation industrys leading lights, and is showing its competitors how putting focus on product quality and employee satisfaction can pay off handsomely.

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118 CONSTRUCTION Penbro Kelnick

The firm, whose interesting name derives from an amalgamation of the names of its two founders Penchard and Hutton-Brown, began life building short-wave converters for AM radio receivers. When Penchard resigned from Penbro to start his own radio production company, HuttonBrown transformed the company into a manufacturer of transformers, wire-wound resistors and coils for contractors. Originally named Penbro Convertors when the company was founded in 1949, it was renamed in 1980 due to its partnership with Kelnick Development. With its broad and versatile range of products, which includes transformers and resistors, the company has grown to become one of the regions leading electronics specialists. We started with only five people and now we have 120, says Penbro Kelnick Managing Director Herman van Aarde. The market has changed quite a bit. We try and manufacture all the old stuff. Were one of the very few companies that still manufacture the stuff we did 30 years ago. Throughout its long history Penbro has embraced change and through its vast experience has manufactured a diverse array of products such as electro-mechanical phase-sequence relays. Penbro has also built a winding machine for the manufacturing of edge-wind resistors in railway locomotives. The company is committed to staying true to an original formula that has worked for it for many years, and through the quality craftsmanship of its products has ensured a large degree of repeat custom. Born in Germany, Van Aarde moved to South Africa in 1948 and joined Penbro in 1964, and has since played a big role in the growth and performance of the company. Van Aarde won the approval of the local community by creating a large number of jobs through his decision to employ people rather than utilising man-made machinery.

Product quality assured


Penbro has provided its services to construction

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

projects and power systems upgrades including railways, hospitals, stadiumsincluding some of the stadia at last years FIFA World Cup in South Africaand the telecoms sector. The South African company also has a metal fabricating department that is able to construct distributor cabinets. But it prides itself on the quality of the design and manufacture of each of its products. Quality is of the highest significance to Penbro and when it designs a product it makes sure to implement reliable components. It is committed to an intense programme of research and development in each of its products, often working with its customers in the

High service levels, after sales support and South African expertise backed by technical support from leading global suppliers. Rotating Machines
Conductor, insulation materials, resins, kits and composites for LV, MV, traction motors and power generators.

Transformers
Raw materials, components, kits, composites and auxiliary equipment for power and distribution transformers.

Bearings
Premium quality bearings into the electric motor, conveyor and mining industries.

08611 WILEC
Te c h n i c a l S o l u t i o n s P r o v i d e r

sales@wilec.co.za

www.wilec.co.za

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

120 CONSTRUCTION Penbro Kelnick

design and implementation of its products to ensure efficiency and reliability. Its most popular products include power resistors, which are used in applications such as heaters, crane control systems, dynamic braking of AC variable frequency drives, electric motors, load testing of energy sources, neutral grounding of AC transformers/generators and harmonic filters. Penbro manufactures three main resistors, including wire-wound resistors, oval and round edge wound resistors, and continuous ribbon resistors, and is the sole distributor of back-up power systems for two French companies. The electrical specialist also manufactures standard load banks, used for applications such as battery integrity testing and equalisation, dynamic braking of AC variable frequency drives, crane and elevator control systems, electric motors and load testing of AC and DC energy sources. The company services equipment throughout Africa and provides training for local communities. We service equipment in Malawi and Tanzania and provide service on a contract basis. We do training for local people and are a support basis for them, says van Aarde. Penbro is looking to expand throughout the wider African continent and has aims of establishing another branch outside of the continent in order to spread its products and farther afield.

Structurally sound, philosophically pure


Penbro consists of seven different departments, all of which are interconnected. Employees are given access to the managing director and many employees have been at the firm for an average of 15 years, thereby demonstrating Penbros commitment to its employees and the close working relationship it has with its workers. One of the reasons why Penbro stands out from its competitors is that everything we sell is manufactured in house, remarks van Aarde. We have a strong design and we are one of the only companies that make certain products, so we are one of the only companies who make some products in South Africa. The company prides itself on its reliable workmanship and product, even when faced with recession or a downturn in the economy. Despite the effects of the global economic crisis the company has avoided making major layoffs while ensuring that the quality of its products remains at the highest possible level. Other companies try to cut down on cost; we avoid that by doing more service. What will happen is that well take over complete service contracts, says van Aarde. Penbro has undergone a lot of transformations since its formation many years ago, but the companys commitment to excellent customer service and

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quality-assured products has remained intact. The company is committed to quality craftsmanship and hiring ethically, and many of its employees are also co-owners of Penbro. In many cases the company has even lent a hand to the lives of its workers by assisting them in building their own houses. This type of commitment to its employees has led the company to receive a level four BEE (Broad Based Black Economic Empowerment Certificate) contributors score. Having worked as a supplier and installer to a number of large projects, including Cape Towns Green Point Stadium and Port Elizabeth

Stadium, and having been commissioned by a large number of big-name clients such as the Bank of Tanzania, Penbro is emerging from the recession with its strong reputation in South Africa and abroad intact, and is no doubt looking forward to an electric future. TAB

elB equipmen

cOnsTrucTiOn

nt MOVing HeAVen AnD eArTH

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124 CONSTRUCTION elB equipment

The South african earthmoving, construction and mining equipment supplier elB equipment is providing high quality machinery in a cost effective manner while maintaining high levels of customer service.
Big prOJecTs neeD big machines and in order to be productive a developer must rely on those companies able to provide high-quality and efficient machinery.

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126 CONSTRUCTION elB equipment

ELB Equipment is one such supplier, offering its customers a broad range of earthmoving, construction, mining and quarrying equipment and solutions. The South African company represents a number of internationally-renowned manufacturers whose products have been designed to meet a range of international standards, strict emission guidelines and safety control regulations. We provide a large range of specialist solutions that enhance our clients profitability and we bring machines from across the world into

southern Africa, says ELB Equipment Director Desmond van Heerden. From its earthmoving equipment division ELB is able to supply clients with a range of earthmoving equipment products that includes wheel loaders and tracked excavators. From its construction equipment division the range includes backhoe loaders, chain trenchers, directional drills and motor grader, while hydraulic hammers, rock drills, and mobile and static crushing and screening plants are available through its mining and quarrying equipment division.

DESIGNED BY THE OWNER FOR THE OWNER


THE NEW TEREx TlB840
With 50 years of engineering expertise, were proud to present the 9th generation Terex backhoe, our most versatile and efficient backhoe loader yet . . . designed around you and your work. With its spacious new cab, curved excavator boom and servo power transmission system the TLB840 maximises your productivity and profitability on the most demanding job sites. Whether digging, reaching, lifting or loading, the TLB840 is breaking new ground in South Africa.
What this means for you
Spacious and ergonomically designed operator cab for increased comfort and productivity. Curved boom for closer loading into trucks and greater obstacle clearance. Deep Dig dipperstick for the clamping of objects between bucket and dipper with optional thumb attachment. High performance 94hp (70kW) charge air cooled engine with a servo power synchro transmission for smooth and economical operation.

SEPTEMBER 2011 The African Business Journal 127

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

TEREX DISTRIBUTION LTD


HEAD OFFICE: 14 Atlas Road Anderbolt Boksburg Tel (011) 306-0700 Fax (01) 918-7208 e-mail: Elb@elbquip.co.za www.elbequipment.com Bloemfontein: (051) 432-3594 Brits: (012) 250-1565 Cape Town: (021) 933-2383 Durban: (031) 464-6522 George: (044) 878-0874 Kimberley: (053) 841-0040 Middelburg: (013) 246-2312 Nelspruit: (013) 755-1003 Polokwane: (015) 293-1978 Port Elizabeth: (041) 581-0774 Wolmaransstad: (018) 596-3032 Botswana: (00267) 240-4320 Namibia: (00264) 61-302-2718 Swaziland: (00268) 518-5348 Zimbabwe: (00263) 913-493-849 Zambia: (00260) 212-210-642

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

128 CONSTRUCTION elB equipment Mining Advert.pdf 1 8/18/2011 8:36:25 AM

TEL: 071 681 9939/12 CELL: 071 680 8029 FAX: 071 680 8874 info@isambane.co.za
C M

PLANT HIRE - TRANSPORT - OPEN CAST MINING - COAL PROCESSING


About Us
Isambane Mining (PTY) Ltd was formed in 2005 and is 100% owend by woman, of which 51% is owned by black women. The company was primarily involved in the processing of coal for power stations all over the Mpumalanga area. Over the years they have grown into a leading Plant and Earth Moving Equipment Hire company with substantial contracts throughout the Mpumalanga region, consisting of coal processing transport and earth moving. Isambane Mining (Pty) Ltd has a Zero Tolerance Safety Policy and maintains an excellent safety record with all our people and equipment ensuring that our customers gain maximum productivity without incidents or injury.

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CMY

As well as providing its clients with specialist solutions and a broad portfolio of movable machinery, ELBs vision statement says that it aims to be alert and ready to meet the requirements of its customers, shareholders, employees and business associates. It is committed to achieving excellence in product distribution and aftermarket service, and has pledged to its shareholders that it will maintain long-term growth. ELBs ambitious aims are being met in part due to its commitment towards the continual development of its staff, ensuring that they act with high levels of professionalism.

Moral values are pretty strong throughout the group, says van Heerden. Were an organisation that believes in supplying world leading products and we give a lot of thought to the equipment that we sell to make sure that they of a good quality and reputable standards.

More than a century of success


The Bateman Group was founded in 1903 by mechanical engineer Edward L. Bateman. Bateman had emigrated from the USA to South Africa to assist local representative Herbert Ainsworth in selling a range of equipment to

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mines. After Ainsworths death in 1919 Bateman bought the business and operated it as an effective and dynamic one-man operation. More than 55 years later, ELB Equipment Limited was established when construction products were introduced under the Bateman umbrella of companies. This was expanded further in 1987 when an autonomous division with responsibility for earthmoving and construction equipment was formed. By the time mining equipment was added to its range, ELB Equipment had become one of the most respected names in its industry.

Bateman Project Holdings Limited was sold to an international consortium of high net-worth individuals in February 2002, and as part of its restructuring, the Edward L Bateman Group of Companies reverted to its former well-established trade name of ELB. Today, the company is a top supplier of engineered products for the infrastructure, mining, processing and construction industries. The company is split up into three different divisions, covering earthmoving equipment, construction equipment, and mining and quarrying equipment.

130 CONSTRUCTION elB equipment

In line with the groups name change in 2002, Bateman Earthmoving Equipment changed its name to ELB Equipment Ltd. It is a decentralised division of the ELB Industrial Equipment Holdings Group listed on the Johannesburg Stock Exchange.

has been a host of new features aimed at enhancing comfort, reducing driver fatigue and aiding productivity. Terex Backhoe Loaders global product manager Jon Beckley says: The new TLB840 is designed to maximise our customers productivity and profitability in these challenging times. Key features of the versatile TLB840 include a curved boom, which provides greater clearance to reach over obstacles and load closer into trucks, and its reduced height provides increased transport clearance. The boom has a new Deep Dig outerslide extending dipperstick, allowing for the clamping of objects between bucket and dipper. An optional thumb attachment is also available for grab and grip applications. High dipper and bucket digging forces allow a dig depth to

Machine variation
Along with its broad range of products for the mining, construction and earthmoving equipment divisions, ELB Equipment is busy preparing for the South African launch of launch of the Terex TLB840 Backhoe Loader, set to take place this October. This ground-breaking machine is one of the most versatile, innovative and efficient Terex backhoe loader to date. Designed around the operator, the TLB840

SEPTEMBER 2011 The African Business Journal 131

5.4 metres while the extending dipper reaches up to 6.7 metres at ground level.

We have spent approximately R80 million on new facilities at our head office in Boksburg, remarks van Heerden. Weve also spent about R6 million at our Kimberly branch and R8 million at our Durban branch, and construction should finish at our new R26 million facility in Middleburg towards the end of this year. With its traditional market in South Africa continuing to perform well, ELB has found itself venturing into neighbouring countries such as Zimbabwe, DRC and Namibia, Swaziland and Zambia. But with its commitment to customer service of the upmost importance, it would surely be no surprise for ELB Equipment to soon find itself in demand even further afield. TAB www.elB.cO.zA

A bright future
ELB Equipment believes in supplying good, stable product and in maintaining a good, stable workforce, notes director Desmond van Heerden. Weve come through a recession without retrenching a single person, while many of our competition struggled, he boasts. We have also paid half-year and full-year dividends right throughout the recession. The companys recent success has led to it deciding to strengthen its existing footprint and investing in some of its existing dealers, as well as some of its own branches.

erBAcOn sM Tools gold

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MAll plAnT 132

134 CONSTRUCTION erbacon Small Plant

Since 1996, erbacon Small Plant has been providing cutting edge equipment for the cream of South africas workforce, making tricky jobs a breeze and offering a variety of modern machinery to a country that is rapidly developing.
wHen peOple DescriBe a tough day at work many claim to have chipped away at the rock face. For Erbacon Small Plant, however, this wellused figure of speech is actually very accurate.

They have been providing the means to chip away, collect, cut, build, blast, saw and seal for the last 16 years.

Heavy duty
With the best will in the world, if youre a miner, construction wizard, brash builder or rousing repair guy and you dont have tools you may as well ditch that utility belt and tuck into those ham and cheese sandwiches now. Civilisation wasnt built on positive vibes alone.

SEPTEMBER 2011 The African Business Journal 135

Stang solutions engineered with tough customers in mind.


We recruit all categories of sta focusing on Power Generation Maintenance & Construction. Our Vision is to train and supply quality temporary & permanent sta and related support services.

www.staffuneed.co.za

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

eclectic range of gadgets includes generators, compressors and compaction equipment, while Fortunately Erbacon supply the most effective, robust, professional and safe equipment, not only to the divisions within its parent company Erbacon Investment Holdings Ltd.but also many major construction outfits throughout South Africa. The extraordinary array of no-nonsense paraphernalia is distributed through Erbacons seven branches (including in Durban, Port Elizabeth and Johannesburg) and its fleet of machines stretch to well over 6,500, while its abundant scaffolding weighs in at 2,500 tonnes. The smaller tools and survey equipment are also readily available. There are five operating divisions within the businessgeneral small plant hire, compressed air, formwork and scaffolding, saw cutting and plant sales. An esteemed member of Contractors Plant Hire Association, Erbacons equipment tackles a huge variety of jobs, most notably formwork drafting, coring, joint sealing, application of polyurea coatings, small demolition work, concrete repairs, sandblasting and flooring services. Such

136 CONSTRUCTION erbacon Small Plant

a diverse set of offerings ensure that companies can often complete all their tasks using Erbacons mighty machines (which feature such curious classics as the Sikalastic 841 ST).

ban which, as its name suggests, is concerned with the aesthetics and preservation of the new Moses Mabhida Stadium. Erbacons equipment has been instrumental in improving the walkways, sealing joints and transforming the parking area around the attraction, making it one of the most pleasing places to visit in the area. The small plant has also been very busy in the last few years, with many multi-million Rand mining projects relying on its facilities, such as the lucrative and highly successful assignment

Changing the landscape


There are a number of projects, for which Erbacon has been the main supplier, that have genuinely made a difference to the community cosmetically, functionally and socially. A fine example is the City Beautification venture in Dur-

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at Eland Mine. It has also been heavily involved in the construction work at Hatfield Station and Junction Camp in Johannesburg. Other impressive ventures include the R20m water supply development at the Mkhwanazi Reservoir, the R100 million project to build the sprawling campus at the University of Zululand City in Richards Bay and re-engineering the Durban Container Terminal. It takes years for a company to build a solid reputation but Erbacon has carefully used its

equipment to create a formidable business with solid foundations. As South Africa continues to look toward a bright and prosperous future the company is in a prime spot to help galvanise the country by using reliability, inventiveness, forward thinking and, of course, the tools of the trade. TAB www.erBAcOn.cO.zA

138

MOOlMAn

Spearheading S property inv

cOnsTrucTiOn

n grOup

South africas vestments

140 CONSTRUCTION Moolman Group

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

experience into an international property development enterprise with a diverse portfolio of projects including corporate, government, retail and residential. Moolman Groups company ethos to stay humble in times of success and to stand firm in the face of adversity, has remained a guiding principal throughout the companys years of experience and expansion.

Project scope
To date, Moolman Group has been working on a number of exciting projects. One of its most noteworthy projects of late is the colossal Mall of the North. Pieter Lombaard, CEO of Moolman Group says, Recently we have been working

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on a few very exciting projects such as the Mall of the North which is opening on April 14. This mall is Polokwanes largest, most modern megashopping centre. The mall represents the largest commercial building in the province and is jointly owned and developed by Moolman Group, Resilient Property Income Fund and Flanagan & Gerard Development and Investment. The project scale is sprawling, and benefits the community in a number of ways. All bricks, sand and stone supplies that were used in the Mall of the North have been supplied from local businesses and the project has created hundreds of jobs for labourers and artisans. The new mall will have access to a range of retailers including a 5,000 square metres Checkers, 5,500 square metres Woolworths, and a 5,000 square metres Pick n Pay. There will also be the first 3D Ster Kinekor in the region (a popular African cinema chain) housing approximately 1,000 seats. Together with Flanagan & Gerard The group is also working on the Middleburg Mall, which is set to be a major shopping destination in Mpumalanga. With plans to open in 2012, the 34,000 square metres shopping centre is perfectly situated next to the N4 highway and easily accessible. The investment of R450 million is a big project for Moolman Group and the company foresees a great future for this development.

Another recent venture that Moolman Group is undertaking is the Game Centre development in Thohoyandou which is known as one of the strongest retail areas in South Africa. The company website states, This is because very little decentralisation of retail facilities occurs, ensuring a strong and vibrant central business district (CBD). The Game Centre is being built up south of Venda Plaza on one of the last remaining pieces of vacant land in the area. The development is about 7,500 square metres. Moolman Group is currently busy building a Makro store in Polokwane as well as being involved with three of the latest Makro buildings in Wonderboom Silver Lake Vaal. Moolman Groups other projects include the Bedworth Centre in Vanderbijlpark also with Flanagan & Gerard, which was completed in November 2010, as well as the Lephalale Mall in Limpopo which will be developed on a 12 hectare site in Onverwacht.

Competitive edge
Being a company that emerged from strong family ties, Moolman Group works with a philosophy that highly values integrity and client relations. As a family business we promote a family culture, says Jannie Moolman. We administer our own portfolio and manage all the property ourselves.

142 CONSTRUCTION Moolman Group

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Within its entrepreneurial spirit Moolman notes its small business structure that aids in a fast turnaround for clients. We are entrepreneurs in a smaller structure so decision making is very quick, says Moolman. We dont have these big corporate structures. Moolman also notes how flexible the company is with clients and how much it values its strong staff. We care about our staff. We look after them the most we can. We are small players in the industry but we are flexible and take opportunities as they come our way, he says. Keeping the business as green as possible is also something that Moolman Group is always striving towards. The company adheres to all environmental laws and knows the importance of keeping up with environmental legislation in its business. It also works in a number of different ways to keep its carbon footprint low. We are quite aware of the challenges and importance of building green and we try to use natural light while optimizing electrical specifications. Moolman notes how important it is for the company to design buildings that are energy efficient as possible. Its a very relevant topic at the moment, he adds. Its corporate social responsibility is also something that the company takes seriously and the team often gets involved with various charity organizations. We like to get involved on the ground.

We recently helped with a school that we saw struggling and for many years we have donated to a charity for child welfare in Polokwane, says Moolman. The company actively assists and contributes to its community in various projects like these. For the future, Moolman Group plans to continue its investments in quality properties. We want to grow and are now in a position for growth opportunities. We are a well-established business and geared up for growth. With its long-term relationships with clients, the company has created a name for itself as a reliable, major South African property developer. Our relationships with our tenants and the fact that we deliver what we promise is key, says Moolman. With integrity and strong client relations, the team at Moolman are geared up for a fulfilling future in South African property development. TAB www.MOOlMAngrOup.cO.zA

MOrgADO
Planting the seeds of success

cOnsTrucTiOn

145

146 CONSTRUCTION Morgado

SEPTEMBER 2011 The African Business Journal 147

With its reliable and efficient customer service, Durbanbased plant hire specialists Morgado offers more than just a wide range of vehicle and machinery solutions.
As One Of the largest plant hire companies in South Africa, Morgado Plant Hire is able to supply its customers from domestic and neighbouring markets with a broad and multi-faceted range of plant vehicles.

148 CONSTRUCTION Morgado

From articulated dump trucks (ADTs), rollers, tractors and bulldozers, to excavators, mobile crushers and tippers, the firm has a comprehensive range of heavy-duty trucks, vehicles and construction-related machines at its disposal. While the Durban-based plant hire specialist and civil construction contractor is known for its extensive variety of machines, it is also recognised for providing excellent customer service. In the past three and a half decades, Morgado has grown to become a leading force in KwaZuluNatals plant hire, civils contracting and logistics industry, and on its website proclaims: We pride ourselves on providing good back-up and supplying

top-class machinery to our customers. The plant hire firm began life in 1975 under its founder Tony Rodrigues as a one man, one TLB-sized operation. His son Luis joined his father in running the business in 1989 and in 2007 his daughter Neli joined the firm with specific responsibilities for the administration of the business. Rodrigues son Luis, a mechanical and civil engineer, says, When I joined Morgado, we had 35 TLBs and worked throughout the wider KwaZulu-Natal area. We then ventured into wheeled loaders, excavators and dozers. We diversified into all types of

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construction plant and so the company expanded.

I used to help him on weekends by repairing and servicing the plant from our home in Umbilo,

now our machines are hired Durban, and the neighbours used to complain throughout South and Southern because we would line our machines up along africa, and we are one of the largest the pavement. plant hire companies in South africa with more than 220 machines, he The foundations for future success adds. But we would prefer to be In 2002, Morgado moved into its current premknown for the quality of our service ises in Glen Anil and has in place a strong founand machines rather than for our size. dation throughout the company, which is able to
provide a springboard for future success. Of his father, Tony Rodrigues remarks, Dad was a workshop foreman and bonded his house to buy his first TLB and start the company. Morgados business model consists of five divisions: civils contracting, plant hire, logistics, materials handling, and crushing and screening.

150 CONSTRUCTION Morgado

The civils contracting division has grown from strength to strength in the past 20 years and today specialises in bulk earthworks, roads and surfacing projects, as well as a range of other construction developments. From excavators to ADTs, and bulldozers to hydraulic peckers, Morgado operates more than 220 machines. The plant and equipment division offers customers support from an in-house workshop, which employs more than 40 mechanics, boiler makers and mechanics assistants. All of Morgados plant operators have been certified to competently operate equipment and the company ensures that supporting

documentation is readily available. Morgado owns and operates 11 low beds capable of transporting up to 60-tonne loads, and therefore requires a professional and efficient logistic division, which it has in place. Thanks in part to its logistic capabilities the company can today boast of being the preferred transporter to several agents and OEMs in South Africa, with cross-border capabilities that include all southern African countries up to Zambia. Morgado has been a regular contractor to the Port Authorities in Durban for several years, involved in loading ships with various commodities from iron ore and coal, to manganese and copper

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EQUIPMENT SPARE PARTS AFRICA PTY LTD

ESP IS THE LEADING SUPPLIER OF REPLACEMENT PARTS FOR EARTHMOVING MACHINERY, DIESEL ENGINES AND TRUCKS IN SOUTH AFRICA.
XCEPTIONAL QUALITY All parts supplied by ESP are subject to the strictest quality controls and are covered by the ESP 9-month parts warranty. AVING MONEY ESPs technology and years of experience are dedicated to a single objective - saving the plant owner money on his machinery, truck and engine repairs. ARTS AVAILABILITY Computer linked warehouses and well trained sta ensure a high level of parts availability and an ecient service to ESPs customers.

concentrate. The firms materials handling division ensures this work is carried our efficiently and successfully with an operation that runs 24 hours a day, seven days a week, 365 days a year. The plant employed in this operation includes 20 tonne and larger pay-loaders, as well as specialised 20 tonne backactor Straddle Machines that measure 7.9 metres high. Finally, the crushing and screening division looks after Morgados three primary jaw crushers, two secondary cone crushers and a tertiary vertical shaft impact crusher. Through such equipment, the company is able to produce crushed stone base and sub-base

materials, aggregates for road surfacing and ready mix concrete, rip rap, gabion and pitching stone as well as processing run of mine material for ore beneficiation. With such a broad range of large machines and solutions on offer to its customers, Morgado is a name that has grown and will continue to grow with the development of big industry and the introduction of big construction projects across the southern tip of Africa. TAB www.MOrgADO.cO.zA

Vegt 152

peOple i

MAnAgeMenT & OperATiOns

tech

in glAss HOuses

154 MANAGEMENT & OPERATIONS People in glass houses

In the current climate growing vegetables has never been so fashionablefortunately Vegtech build the best greenhouses in africa, so everyone can make a statement or, if the need takes them, a cucumber.
prODucing A cOrnucOpiA of vegetables has grown in popularity over the last two decades. Whether it be for environmental reasons, a business or simply in order to show off to the neighbours, people are increasingly keen to cultivate their crops. The seed of Vegtech was carefully planted at the very dawn of these trends, allowing the company to blossom and flourish, in tandem with the popularity

of greenhouses and home-grown produce. Vegtech has grown considerably over the last decade, as companies respond to the various international food crises and water shortages. It provides the opportunity to tackle these issues positively, using the finest materials and most cutting-edge technology.

No pane, no gain
The company was formed in the late eighties and originally traded by importing Israeli agricultural technology through consultants in the northern part of Africa. Later it began farming operations and quickly established the need to update existing equipment,

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while also establishing that other farms needed technology in order for their farms to perform better. At this point the company realised they were on to a winner and settled into building structures for food production. As well as greenhouses it also sells all the hardware needed to grow undercover, offering systems like net houses and tunnels. The company currently has exciting projects in Botswana, Abu Dhabi, Zimbabwe and Angola, while 60 per cent of its trade remains in South Africa.

completed 400 projects. Its vast and versatile range of technologies enables it to supply according to different environments, size and product requirements. The main emphasis for Vegtech always has, and always will be quality; creating desirable products which benefit from low maintenance and a professional finish that will last. Indeed, a great many of their original greenhouses, built more than 20 years ago, are still functioning superbly to this day. Deon Van Rooyen explained that the companys refusal to cut corners means that they will always produce formidable structures. We believe in supplying a greenhouse that is solid

Fertile times
In South Africa Vegtech can boast 20 years of experience, during which they have successfully

156 MANAGEMENT & OPERATIONS People in glass houses

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and fully operational. We have done a lot of fine tuning in terms of how the components connect together and also insulate our structures against the sun, using a revolutionary tape, he said There are small things that no one else does, for instance, all our nuts and bolts are the same as those used in the motor manufacturing industry. You know that in high wind and storm conditions your green house will remain standing! he added. Additionally, the plastic coverings it uses are from a European manufacturer which incorporates the best technology in the world, helping to create exactly the required climate inside. These advances ensure there is much less need to control insects and use fertilisers. This means less chemicals, so the produce tastes better. Meanwhile, there are a special range of nets to put on openings so that customers can maintain a pest-free greenhouse. Above all, the technology creates bigger, healthier and more abundant crops.

Van Rooyen explains, When we go to a place with a very hot climate we prefer to keep the structure smaller, whereas a colder atmosphere is more suitable for bigger houses. Climate also dictates what type of structure we erect. Over the last 20 years we have established precisely which design works best in each area. Most of Vegtechs competitors come from Europe, and although some make similar structures, this is where the similarity ends. Africa has a distinct set of meteorological and atmospheric considerations that are markedly different. When you put a greenhouse up in Europe it is all about how to preserve heat, in Africa the central objective is to get rid of it. This gives Vegtech a unique pool of knowledge that gives it the edge over rivals. In the next five years the company will continue to focus on the lucrative African Market as well as the Middle East and, eventually, India. As Vegtech continues to thrive, on its immovable bedrock of quality, it is determined to keep utilising the unrivalled experience and knowledge that has made it one of the indisputable leaders in a very exclusive field. No wonder confidence, like the vegetables in its greenhouses, keeps growing. TAB www.VegTecH.cO.zA

Big ideas
The company currently employs over 200 subcontractors and 35 full-time employees, many of whom have been applying their craftsmanship to Vegtech projects since the very beginning. There is no limit to the size of greenhouse it can build, but they often use their expertise to determine the scale of the structure according to climate.

158 kn sTrATegy,

neTwOrks A

how Global Pacific & Partne with unique industry business

MAnAgeMenT & OperATiOns

nOwleDge, AnD success

ers continues to outperform s model and advisory practice

160 MANAGEMENT & OPERATIONS Global Pacific & Partners

There arent many advisory firms in the upstream oil and gas industry that can match Global Pacific & Partners stature or its business model: with three decades in the world upstream, having played host to over 5,000 speakers and 30,000 delegates across africa, asia, latin america, Mideast and global gatherings. In fact, there arent any with the companys on-ground and africa-wide experience either.
I believe that our aim has always been to deliver the best quality and this is something we

have consistently achieved and for which we are recognisedin our worldwide events, unique strategy briefings and in our advisory practise, deputy chief executive Babette van Gessel reflects. Over the years we have built a global annual portfolio of high-level conferences which are landmark meetings, running now for over two decades. We have also always sought to be personally and directly involved, and to be innovative and ahead of the game and have been pioneers in several arenas. Take their global e-Conference facilities for online presentation access; since early 2000 this

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suite of online presentation access has operated unrivalled and proved very popular. Or the groups global daily and weekly oil and gas industry newsletters sent to more than 40,000 recipients, which cover all regions, key countries and specialised themes and focuses. No-one matches the model for our worldwide strategy briefings done on Africa, Asia, Latin America and MidEast plus on the world oil future in the manner we have conducted them, and we have hosted over 3,500 clients in these briefings over the years, van Gessel says. They provide a unique blend of upfront insight and networking pre-event with high-impact and intensive conferencing following, and are based on rich content. Keen to gain more perspective on quite how wide-ranging, well-targeted and complimentary Global Pacific & Partners range of services is, TABJ met with van Gessel to hear about how, in her own words, the groups huge communications strategy operates. It goes without saying that those who facilitate knowledge-sharing, networking and information access possess some of the most vital tools any player in any industry relies onbut there arent many that can stand alongside their company when it comes to communicating petroleum, energy and strategy insight from Africa and beyond.

TABJ: We last spoke in July 2010, and looked closely at the events, research and advisory sides of your work today. What might you define to be key focuses at the moment from an events perspective, perhaps upcoming events such as the 21st World Upstream Conference? Please tell us more about what is coming up and why they are globally significant meets. Bg: Yes, we have some globally significant events still taking place this year: our 21st World Upstream will be hosted in Geneva from 20-21 September and is one that looks around the global industry at large with 37 top-level speakers, so setting it apart as a truly global management meeting plus with an in-depth 10th World Oil Future Strategy Briefing taking place just prior. Our 16th Asia Oil Week in Singapore which tracks the oil, gas and LNG game in the region, company strategies and exploration portfolios, follows shortly after on 29-30 September and this is allied with our 20th Asia Petroleum Strategy Briefing, which is the longest running briefing on Asias exploration industry, and really even worldwide. We have been active in Asia since the early 1980s, and Dr Duncan Clarke (Chairman of Global Pacific & Partners) has had extensive experience and presence in the region, so this track record has helped cement our efforts there. Afterwards from

162 MANAGEMENT & OPERATIONS Global Pacific & Partners

31 October-4 November in Cape Town we host the 18th Africa Oil Week which is our flagship event, attracting typically over 800 participants from around the world, from Monday through Friday. It includes the well-known 13th Scramble for Africa Strategy Briefing, plus has 75 speakers at the Africa Upstream and Africa Independents Forum, and with an exhibition. Its the crme de la crme in and on Africa there each year, and really is an important occasion for the industry and Africas deal flow, acreage marketing and transactions. TABJ: In your advisory practiceperhaps also strategy briefingswhat are the pertinent topics reoccurring today? Within this, how is Global Pacific & Partners working to assist its client base in tackling these issues? Bg: On Advisory we only focus on strategy. Its been our metier for over three decades. Mandates are only accepted where we know we can deliver accordingly, and then only on client request. We do not pitch for business. Presently we are acting for the interests of a newly-listed AIM exploration player from Africa, with strategy and advice on assets and growth options, done for the CEO and Board. We are close to finalisation of our mandate for the African Development Bank on oil and gas strategy and investments,

to bring them further into Africas upstream and grow their asset portfolio in greater measure across the industry, and build linkages and deal flow with private companies and related development finance institutions. New Zealand has retained us to assist in solicitation of key corporate oil investors to take up exploration acreage there, and we shall conduct some meetings in early October in Wellington for them on this matter. They have some of the best fiscal terms, operating conditions and unexplored frontiers worldwide. Earlier this year we provided advisory insights for GE Africa on economic issues and potential in Sub-Saharan Africa, and likewise for Engen, one of Africas leading downstream players. In the case of another private company we have been assisting them to get a grip on the oil/gas pipeline markets in Africa and build relationships to the key state oil players across the Sub-Saharan business. So our Advisory practice is really a mix of circumstance, meeting specific client needs, shaping business networks, while assisting with understanding of world and African oil and gas industry markets and issues. TABJ: As part of your mission, I see you have a hand in networking too. Lets look at the clubs and networks that you partner with, and any of them that are particularly significant in terms of news

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

AGENCY FOR AN PR IC FR

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SOU

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PETROLEUM AGENCY SA
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OF PETRO L

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Exploration opportunities are available offshore over shelf


and in unexplored deep water frontier regions.

areas

The onshore Algoa and Karoo basins present opportunities for conventional oil and gas exploration as well as for unconventional gas in the Karoo Basin. South Africa offers an investor-friendly and stable political environment, competitive fiscal and commercial terms and an excellent infrastructure.

Petroleum Agency SA, based in Bellville, Cape Town, is responsible for the promotion and regulation of exploration and exploitation of oil and gas (petroleum) resources within the Republic (onshore and offshore) on behalf of government in terms of the Mineral and Petroleum Resources Development Act.

Contact us to find out about Onshore or offshore exploration opportunities for oil and gas in South Africa Permits and rights for reconnaissance, exploration or production Availability of oil and gas related geotechnical data

Phone: +27 21 938 3500 email: plu@petroleumagencysa.com www.petroleumagencysa.com

agenda and furthering insights/reshaping views for African upstream-related industries today. Bg: There can be no doubt the our PetroAfricanus Club, which was started in 2004 and has attracted over 3,000 attendees at its dinners so far, held in London and across Africa (Cape Town, Nairobi, Lagos, Marrakech, Tunis, Johannesburg) has been of great significance to Africas deal flow and relationships between companies and governments and national oil companies. By end of this year we will have hosted 42 dinners, each with a leading guest speaker. Its a special forum that cements many within our networks around

the world, providing intimate business connections and continuity which has equally been much appreciated by the Clubs Patron and Corporate Members. Our African Institute of Petroleum (initiated 1996 and re-launched 2009) has made its mark, with over 500 individual members, in shaping understanding about the economics of the oil game in Africa. Governments and industry too often narrowly focus on fiscal state take in relation to acreage and investments but this is only one of the economic aspects of corporate portfolio impact. Much wider and larger direct and indirect economic benefits flow outside of fiscal revenues, which should be

TION AND ORA EX PL PL EX

164 MANAGEMENT & OPERATIONS Global Pacific & Partners

accounted for in any calculus. Part of the growth in resource nationalism and the rising tax interest of the state in Africa have arisen as a result of non-appreciation of these facts. Without fullscale economic evaluation of this kind, Africa will be taking the path to less competitive outcomes in this globally competitive market for exploration investment. Our clubs and networks have been fairly instrumental in building bridges between all parties and stimulating relevant discussions. TABJ: On a daily, weekly, monthly and yearly basis, you have all sorts of tools to bring members together, impart vital news and provide insight on current affairs related to industry. Perhaps you can tell us a bit about what it means to facilitate forward-thinking dialogue both between members, yourselves and wider industry, and how Global Pacific & Partners effectively does that?

Bg: Our tools of direct communication include around 30 newsletters that provide breaking oil/gas news daily and weekly. Our Conference events with quality speakers and agenda help shape the corporate landscapes and interfaces with governments. The Strategy Briefings impart world-class strategic insights and knowledge to over 600 clients each year focused on worldwide competitors, economics, strategy, acreage, industry trends, and risks/threats. We also undertake dedicated road-shows for governments and licensing agencies worldwide, and have done so in Africa, Asia, Europe and elsewhere, while last year we did so for Colombia and Gabon. There is networking built into all of these activities. We hope that our clients are enriched by these engagements, and for us its a continuing learning experience: one can never know enough. TABJ: With both yourself and Duncan Clarke at

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the helm, Global Pacific & Partners has certainly amassed many achievements since its founding. Where will the firm go next? What are your company-centric plans and goals, from adding members and targeting other niches of industry to expanding on what is already a highly diverse and comprehensive communications structure? Bg: Our first aim is to survive. Turbulent waters come and go. Success is a bonus, if it comes. As we are a small firm, our main interests is to raise the quality on all our annual platforms, and in that way seek to grow the delegate flow and commerciality too of course, as well as sustain our advisory mandates (which by necessity are episodic). Beyond oil, we have a long track record in Africas economics and this side of our knowledge remains active for advisory mandates too. Actually, Duncan Clarkes new book (Africas Future: Darkness to Destiny) will be published in February 2012 by Profile Books (London). It covers the key drivers on economic growth impacting the economies from the past and present, into the future. It is a rethink on Africa, unlike much of the views you currently hear. But in general we prefer to stick to our knitting. Even so, we may return next year to one arena on which we undertook over one decade of significant conferencing: on Africas downstream, which we understand

well. We will soon also reshape our model for the newsletters, to convert most to commercial ventures, so providing gratis news-flow on both the world and Africa, but also combined with specialised paid services for those that want and need our highly-focused insights. TABJ: For companies, noteworthy individuals and other industry interested parties who want to know more about your work, what do you advise? They can of course visit www.petro21. com, but is there anything else they ought to be looking out for from you? Bg: Well, they can ask to be placed on our management database so as to receive notices on all our events, and they can receive gratis our Newsletters, for updates on our Programs as well as on developments in the industry at large - just send an email to info@glopac.com. As our Advisory practice is like a boutique, interested parties can contact us directly for this also. TAB TABJ thanks van Gessel for her time and input during and after the interview www.peTrO21.cOM

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Msp DeVel

Building a comm

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munity

lOpMenT

168 MANAGEMENT & OPERATIONS MSP Development

Society matters are just as important as material procurement for MSP Developments. The Western Cape property developer explains how the art of prioritising does have its rewards.
Msp DeVelOpMenTs is dedicated to providing home owners with everything they need from the design of their homes, to their construction, to their delivery and beyond. The company designs all of its units along with the infrastructural elements of each of its estates, while bringing what MSP Developments managing director John Coetzee describes as

affordability to the people. Everything cost is worked out properly, notes Coetzee. There are no massive profits anymoreyou cover your overheads and you ensure your profits give you a good chunk of the market. We manage the whole process to keep the price of procurement intact and make it affordable for the new generation of buyers coming through. Launched as MSP Developments in May 2002, the firm has experienced tremendous growth and has brought some of South Africas largest residential projects to the retail market. The group is split into eight divisions, each one coving a specific area of the market from

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marketing and sales, to customer finance, rentals and construction. But despite its ambitious and competitive nature, as well as its large size, MSP rarely moves into territories outside its current market in Western Cape. We stay inside our radius as we can manage that logistically every single day, says Coetzee. The acronym in the companys name stands for multi-spectrum projects and represents the broad range of work the firm carries out across the residential, commercial and industrial sectors. The company is heavily branded and as a result has a strong presence in the mind of locals

in the region, notes Coetzee. Everyone is basically aware of MSP Developments, he says. With old established companies they are able to explain themselves over a number of years, but with MSP we had to put the name out into the market and really brand it. MSP is everywhere thanks to the marketing skills of our founder and managing director Riaan Roos and it is a name recognised across in South Africa. The company employs more than 165 people and has continued to grow in the past 30 months despite the sluggish state of the economy. We did this by ensuring the same level of sales momentum, says Coetzee. When everyone was

170 MANAGEMENT & OPERATIONS MSP Development

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172 MANAGEMENT & OPERATIONS MSP Development

heading downwards we were expanding. We are working on several developments including the large Buh-Rein Estate, which comprises 3,511 residential units, plus commercial units. Were also building 3,000 units at Blue Downs and at Sitari Fields Golf Estate weve purchased another 192 hectares for another 3,200 units.

take more than 10 years to get there, and by that time its will have simply continued to move forward, and therefore it takes a lot of planning, not only on our part as the developers, but also for the financial institutions. With financial institutions lacking confidence due to the recession MSP has set up its own vetting department, thereby ensuring it only forwards good customer application onto the banks. Coetzee says that the effort of the whole MSP team, along with the firms comprehensive approach to business, has enabled the firm to achieve such impressive growth and sells on average close to 80 units per month.

Feeding the affordable housing market


South Africa has a backlog in affordable housing market of more than 500,000 homes and the topic is one of the most discussed, according to Coetzee. If you try to play catch up with this backlog, you would never get there, he remarks. It would

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If look at 2009 when the recession was heading towards its bottom end we still delivered more than 400 units, he notes. In 2010 this figure rose to 490 and this year we should hit 600 units for the year. The company has a 60-seater auditorium, which it often for educational and training purposes for staff, investors and potential buyers. Its important for our buyers to understand what they have signed for, what theyve bought and what affordability means, says Coetzee. The company provides educational support to a selection of community leader supplying them some of its buyers with an education lectures. When people buy a house, they may not always understand the water costs, the taxes and so on, remarks Coetzee. The market changes so much, but as the buyer gains more educated they look for better products and value for money.

our developments, and once in place the professional team constructing the development does not change, because you risk losing focus. We look physically at developments to make sure they dont prohibit the people from living there as every square metre is important, and this includes the security detail. At Buh-Rein Estate, MSP has placed 186 cameras across the development, which also features a security response team and 24/7 security guards on the facility, providing a high level of protection for residents. Like each of the companys other developments Bur Rein is, in effect, a suburb. The development has everything a community requires, including schools, churches, shopping centres, jogging tracks, sports fieldseverything a community needs to live, play and work inside the development. You get good developers and bad developers and we pride ourselves as a good developer and on good design, notes Coetzee. In 2010, MSP won a South African Planning Institute (SAPI) award for its Buh-Rein Estate development, with so much care and attention paid to its developments, there can be no doubt that the company will feature prominently at the next SAPI awards in 2012. TAB www.MspD.cO.zA

Creating a community
MSP Developments plans ahead, which is has to do in order to stay ahead of the demands of the marketplace. We work on at least a five-year plan upfrontespecially when it comes to buying land, says Coetzee. There are many markets to cater for and every site we design is unique. We do not do a copy and paste job on any of

luB 174 G

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BriTene Greased lightening

176 MANUFACTURING lubritene

SEPTEMBER 2011 The African Business Journal 177

lubritene provides solutions for heavy industrial firms that require specialised lubricants in order to operate effectively.

178 MANUFACTURING lubritene

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SEPTEMBER 2011 The African Business Journal 179

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180 MANUFACTURING lubritene

THe luBricAnT speciAlisT Lubritene is playing an important role in the development of many industries across Africa. Noted for its brand of high-performance specialised lubricants, the company prides itself on being able to provide heavy industry with bespoke solutions. Whether it is for drilling, commercial applications, or open-pit mining equipment, the firm will no doubt have a high-performance grease, compound or oil to suit the needs of its customers.

Reborn
Lubritene started life as an importer of high-performance lubricants and in 1996 began to manufacture its own high-performance products. Lubritene Marketing Director Tiaan Oosthuizen says, During this time it became expensive to import these lubricants, so we decided to manufacture ourselves. We were manufacturing some products already, so it was an easy change to go ahead. We then brought out our own brand and marketed it into the mining industry. On the challenge of change, Oosthuizen says it was a daunting experience, but notes that the company has been performing well ever since. Our biggest challenge was in our manufacturing capability in that we had to change or upgrade, he remarks. We had one grease plant from which we made 50 different products, so we had to change the whole manufacturing set up. We installed new grease plants, new blending plants and specialised plants for open gear products, cam compounds and similar products. The company streamlined its manufacturing capacity at the turn of the millennium and has been working at full capacity ever since. Most of Lubritenes products are developed due to problems in the field experienced by its customers on their applications; but as a special-

SEPTEMBER 2011 The African Business Journal 181

back-up service team consists of 30 people, says Oosthuizen. These employees travel all over, visiting client sites to check on their machines and ensure the correct utilization of our lubricants. They check on consumption, work out recommendations and propose new and better ways of applying the lubricants to the component that requires lubrication. Oosthuizen says that it is this attention to detail and service that forms a large part of Lubritenes success. The companys research teams work to optimise products to suit the customers requirements, using science techniques such as vibration analysis and temperature analysis to ensure the lubricant is getting into the places it should. ised company Oosthuizen says it is forced to rely on its customers passing on the message. We are not a major international fuel company who put millions towards their marketing budgets. All our products are mainly sold on word of mouth and in-field performance, he remarks. We make sure it is cost effective, notes Oosthuizen. We have found you can use general purpose grease or you can use our flagship product, and ours will still be more cost effective even if our product is four times as expensive. The company has in place a research and development laboratory as well as a quality control laboratory. Lubritene also offers a range of low-consumption products, including some that are bio degradable, as it attempts to become more environmentally friendly with its products.

Service before sales


The company employs close to 100 employees and is expecting sales to increase in a steady fashion. Were very service intensive and our sales team consists of just six people, whereas our

182 MANUFACTURING lubritene

We have sold a few of these products into the mining industry and we have also developed a drilling lubricant for exploration drilling that will not contaminate underground water supplies, which has been approved by the rSa water board, explains oosthuizen.
There are certain applications where you do need to have to environmental considerations, and most of the time we will have your product to suit your application, he adds.

Beyond the continent


Based in South Africa, the companys growth since 1996 has led it to venture out of the country, into the wider continent and beyond. At the moment we have agents in Ghana, Zambia, Botswana and Zimbabwe, notes Oosthuizen. We talking to people in Angola, and there are people in Tanzania using our product. The company has two outlets in Australia and also exports some of its products to China. We deal through an agent in China and ship the product to Hong Kong, so from our side it is pretty low key, says Oosthuizen. We

SEPTEMBER 2011 The African Business Journal 183

have been in Australia for about six years with our outlets in Perth and in Singleton, so were covered on both coasts. With a broad range of clients and market, the company has survived over the past years and overcame the pressures of recession through an aggressive sales tactic. We made a major push on the sales side to ensure we survived, remarks Oosthuizen. During our toughest year in 2008 we only grow by two per cent, but in the past three years we have grown on average between 15 per cent and 20 per cent, basically because of this major sales push. Lubritene may not be a major international oil company, but thanks to the cost effective nature of its high-performance products and high service levels, many of its customers view it as a vital and valuable partner. TAB www.luBriTene.cO.zA

184 keep iT reel Cotton King

MAnufAcTuring

186 MANUFACTURING Cotton King

Its refreshing when a company focuses solely on what it does best. In Cotton Kings case, the name speaks for itself and, naturally, it wont lose its thread.

SEPTEMBER 2011 The African Business Journal 187

188 MANUFACTURING Cotton King

THere Are Very few needs in life that apply to every single member of the human race. Apart from the obvious examples like water, bread, love, DVD player and, red wine, there is another item that most people simply wouldnt be able to function without. Cotton. A world without cotton, frankly, does not bear thinking about.

part of South Africas fabric for many years. Its mission, from day one, has been to manufacture and market the best quality cotton products, appealing to a wide range of customers. Indeed, these affordable and essential items have also become available throughout the rest of the African continent and across the globe. Since 1998 the company has experienced rapid growth, resulting in an expansion of products and, as high streets become more extensive

Spinning a yarn
Cotton King has been, in the most literal sense,

SEPTEMBER 2011 The African Business Journal 189

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and the demand for convenient cotton utilities increases, there has been a steady rise in Cotton Kings productivity. It is Cotton Kings policy to deliver cutting edge training, while also recruiting the most talented and experienced craftspeople, capable of reaching the high standards established by the company over the last decade. Every employee recognises the responsibility to create desirable items for a very demanding and constantly evolving market. Effectiveness and efficiency are constantly monitored, enabling the workforce to manage production and guarantee that

the supply line remains in tune with targets. This is further improved by incorporating new technology, ensuring maximum output. The range of products offered by Cotton King is supplied to both the local and international markets and retailers include pharmaceutical companies, veterinary services, supermarket chain stores, government departments and private hospitals.

Factory settings
The initial process at Cotton Kings factories involves the cleaning and bleaching of highquality cotton comber, sourced from reputable

190 MANUFACTURING Cotton King

Denis Gourley Packaging a 100% privately owned enterprise and is a prominent supplier of a wide spectrum of packaging materials to the South African market via a network of loyal distributors and end users. Denis Gourley Packaging has grown leaps and bounds since inception due to its commitment to superior quality, superior service, outstanding value, innovation and unblemished loyalty.
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spinning mills nationally and internationally. Rolling and balling of products during this process means materials from different mills merge and become indistinguishable. State-of-theart equipment ensures the final cotton product from this stage is the safest available. Cotton King remains the exclusive manufacturer of cotton budsboth swabs and Q-tipsin South Africa. These high performance buds are supplied to the market under leading brand names and many millions are used every day for small but vital jobs like removing a troublesome eyelash, cleaning a wound or restoring ears to

their original condition. Curiously, cotton buds are one of those few products that mankind would struggle to do without. Although they are simple items, the advance in machinery over the years has made Cotton Kings modern buds the best they have ever produced. The company also supplies cosmetic facial pads to major brands for sale in supermarkets, pharmacies and convenience stores around the African continent. In addition, the Cotton King manufactures indispensible favourites such as cotton wool rolls, cotton wool balls, beauty coils, bleached cotton, non-absorbent cotton wool

SEPTEMBER 2011 The African Business Journal 191

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and pleated cotton wool. If youre using a cotton based product for beauty, cleanliness or cosmetics in South Africa it is 99 per cent certain that it came from the hallowed Cotton King factories. Already crowned as the undisputed monarch of cotton, the company is still growing every day and there is no doubt that its place on the throne is guaranteed for many years to come. TAB www.cOTTOnking.cO.zA

192

BellzO

Mining

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194 MINING Bellzone

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

SEPTEMBER 2011 The African Business Journal 195

196 MINING Bellzone

THere is An ancient saying in mining and, roughly translated, it goes something like this. Gods earth will yield willingly, provided you are willing to put in the work. It is this philosophy, along with modern practices and considerable patience that means Bellzone will stay at the top for many years to come. Its just as welltheyve meticulously planned every step of the next decade and beyond.

The drilling fields


Bellzone Mining Plcan exploration and resource developmentwas founded by Nik Zuks only three years ago, but already it has some big ambitions, which it is determined to realise. The company has already secured iron ore, nickel and copper permits in the Republic of Guinea, West Africa and these credentials have helped to guide the companys early fortunes,

SEPTEMBER 2011 The African Business Journal 197

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as they establish the most lucrative areas for its operations. At the moment it is involved with the vital first phase in Forcariah, with initial production due for the first quarter of 2012. It has jointly funded the venture, which involves carrying out accelerated investigative activity, 30 and 80 kames from the Guinea coast. Projections suggest that there will be a production rate of three to four mtpa of oxide ore, soaring to a rate of 10 mtpa in 2013. In addition the companys promising project at the Kalia Mine is due to produce 20 million tonnes of iron-ore per annum in 2014, expanding

to a capacity of a whopping 50 million tons per annum in 2018. Drilling results and internal estimates indicate that the project has the potential to host more than 10 billion tonnes of magnetite and two billion tonnes of oxide. The massive quantities also make the fledgling company any extremely good prospect for investment, especially at these early stages. Chief Financial Officer Terry Larkan explains the impressive figures: We have a 50 per cent commitment to the current mission at Forcariah, which has a total capital expenditure of $208 million. Our Kalia project will see us committing

198 MINING Bellzone

an even greater capital expenditure programme of $2 billion. Another massive investment, which commences now, and runs through to 2018, will commit in excess of $3 billion to construct a revolutionary, commercially operated railway and port in Guinea for the export of bulk commodities such as iron ore. The facility will transform the lives of thousands in the area.

programme, identifying prospective nickel and copper projects. An aerial survey is also currently being conducted to further define areas for a targeted drilling programme. These techniques will eradicate the time consuming practice of drilling at random, or on a hunch. By carryout research thoroughly and reducing risk the yields will also be significantly higher. Further afield, Bellzone has acquired the rights to buy 70 per cent of whale from Compagnie Miniere de LOuest Africain in South Africa. It is undertaking geological studies on the tenements which could be iron ore rich.

Scanners
Recently, the company has completed a highly sophisticated mapping and surface sampling

SEPTEMBER 2011 The African Business Journal 199

200 MINING Bellzone

Larkan reflects that although they are a very young company, an adventurous approach will pay dividends. We have not been around long, but have proved that our strategies for structuring, engagement with community, environmental considerations and a safe working ethos have formed the company culture and proved it has very solid foundations. There is a real sense of pride combined with huge excitement as we progress towards our targets. We have worked very hard and the next ten years will be the most important in the life cycle of the company, he added

Patriotic personnel
Bellzone is proudly Africa centric. The majority of the workforcewhich has ballooned from three to 200 in less than 36 monthsand all assets are based in Africa. As the company grows so will its presence and the aim is to gain status as one of the top iron-ore outfits in Africa. The entire leadership team has extensive experience of mining all over the continent and

SEPTEMBER 2011 The African Business Journal 201

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further projects throughout Africa and over the next few years will provide the foundations for the next half century. When billions come into the equation, whether a comprehensive understanding of the unique challenges, opportunities and advantages in all conditions within the region. The melting pot of talent is another example of the companys determination to be prepared for every eventuality by using the finest manpower, technology and knowledge in the industry. As well as the deals that are already on the table, the team are constantly on the lookout for www.BellzOne.cOM.Au it is dollars or tonnes, it is surely proof that young companies can think big too. Naturally, Bellzone are in it for the long haulquite literally. TAB

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