The African Business Journal Dec 2011 - John Pinching

AfricAn Business
december 2011 Volume 2 Issue 12

www.tabj.co.za
The
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IN THIS ISSUE
Business South Africas unique economy
interview Concrete Manufacturers Association
Company foCus TFG Sports
SECTION Title
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EDITORS Note
Salam wa alEIkum! Ye Gods, the world has changed since I last spoke to you, dear reader. To say that its been an interesting month in Africa would be an understatement. The freedom fighters of Libya have had the final say in an old fashioned battle between the forces of good and evil. A certain mad dog, whose name they choked on for so many years, will never speak again, and for Libya that is a pretty good result. For the first time in over four decades its people can breathe easily and, consequently, our cover story focuses on the extraordinary revolution, liberation and future of Libya. This issue also takes a look at another significant swing of the political pendulum this time in Zambiawhere the new government means business; big business. There is also an analysis of the South African economy; looking at the traits that have allowed it to apply pragmatism, character and strength at a time when more experienced trading platforms have buckled. Hot on its heels, is a look at the future of
South Africas rugby team, courtesy of our local correspondent and, boy, he pulls no punches in his assessment of how the Boks were managed during the Rugby World Cup 2011. In addition, weve got an insightful interview with Hamish Laing, Director of the Concrete Manufacturers Association and, naturally, he provides some really solid answers. Our comprehensive array of company features from the cream of Africas business community draws inspiration from several industries this time, including transport, mining, and construction. There is even a feature on an airport where wildlife is free to roam around the departure lounge and an impala greets guests at check-in. Seriously, folks, what more could you possibly want? Enjoy the festive season, wherever you are, John Editor
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TABJ Team
John Pinching | Editor | johnp@tabj.co.za Ben Watts | Staff Writer | benwatts@aubj.com.au Laura Hedges | Editorial Assistant | laurah@tabj.co.za 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 | hughb@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 Heather MacPherson | General Accountant | heatherm@georgemedia.ca Simon Curran | Vice-President/Publisher | simonc@irjonline.com
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Table of cOnTenTs
december 2011 | Volume 2 | ISSue 12
040
Business
cOncreTe mAnufAcTurers AssOciATiOn concrete conversation muse news coming out of africa GADDAfi is DeADhow it came about really doesnt matter ZAmBiA united nation sTrAnGe currencies BOk to the future kruGer mPumAlAnGA inTernATiOnAl AirPOrT Pretty fly HYunDAi AuTOmOTiVe Gear change fATs the way to do it G4s Stars of ccTV sTAYcOlD inTernATiOnAl The king of cool
010 020 028 040 048 054 058 066 080 086 094
sPOrTs rePOrT AViATiOn TrAnsPOrTATiOn
securiTY refriGerATiOn
066
028
Table of cOnTenTs
december 2011 | Volume 2 | ISSue 12
cOnsTrucTiOn
l.A. sTAAl The steel sovereign sTefAnuTTi sTOcks HOlDinGs building bridges c.e.l. PAVinG PrODucTs Where the streets are paved with gold OJ cOnsTrucTiOn new kids on the block
Jolly good sports: TfG sPOrTs
106 112 118 124 134
PAVinG PrOPerTY sPOrTs GeAr mininG
eVrAZ HiGHVelD sTeel & VAnADium lTD. is a truly responsible

South african steel player
146 156 166
DesmOnD equiPmenT dezzi-nated driver sA lime & GYPsum The lime of the century
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mAnufAc AssOci
01 cOnc
concrete co
Business
10 creTe
cTurers iATiOn
onversation
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BUSINESS concrete manufacturers association
DECEMBER 2011 The African Business Journal
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next year South africas concrete manufacturers association (cma) celebrates its 40th anniversary. TabJ got in touch with cma director hamish laing to speak about the trade associations role in promoting its industry and find out how it has taken on the challenges it has been forced to confront during the current global financial turmoil. How did the CMA come into existence and what is its role?
The association was set up 39 years ago when the whole concept of making masonry bricks and blocks out of concrete first came to South Africa. It was founded by manufacturers to develop the standards and the technical detailing for concrete products, and is today responsible for setting industry guidelines. We are made up of six divisions, which run their own affairs, but if they decide to carry out research and development project then we would assist them in commissioning consultants. It used to be a called the Concrete Masonry Association, but it has evolved over the years to include concrete pipes, roof tiles, floor slabs, paving and concrete retaining wall blocks.
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What are the benefits of being a CMA member?

We are seen as an authority and we do revisions of standards on a regular basis, which are approved by an independent entity. Therefore, one of the key advantages of being a member of the association is that you can join your local division technical subcommittee and play some role in influencing the standards. We also do a lot of marketing on behalf of our members and promote our members as trusted technical leaders. Someone looking for a concrete-related product is able to go onto our website to find their nearest member and buy from them.
Do you support the cement sector through educational initiatives?

We work to encourage younger engineers and students to come and find out more about concrete and often hold seminars that offer background information and updates on technical developments. We also spend time with education establishments so that we can catch young engineers as early as possible in their careers and we produce technical publications to assist suppliers and influencers to specify and use our products properly.
Are you working with any national associations from neighbouring countries?
Unfortunately not, but we do have some
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members from neighbouring countries who wanted to be associated with us because there is no national association in Zimbabwean, Botswana or Mozambique for example. Some of these companies like to be able to come to our meetings and stay abreast with the technological changes and trends taking place within the industry.
scenario, which has led to raw materials especially the selling price of concrete products to accelerate beyond inflation. I do, however, predict a period of growth in the retrofitting construction sector, which would benefit the cement industry, because a lot of cement goes into these types of projects.
How did last decades property development boom affect the industry in South Africa?
While I wasnt with the association at the time, I was with a commercial company and saw how prices accelerated beyond inflation. That was the old supply and demand
How did the global downturn affect the industry and the CMAs standing?
The first bubble to burst was the residential bubble and that bubble burst very quickly for those involved in residential construction, which includes a lot of masonry and roof tiles firms. Many of our members were, however, involved in infrastructure projects for last years
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World Cup, and some parts of the industry that were not solely focused on the residential side of things enjoyed a honeymoon period, and following the meltdown continued to grow. South Africa remains quite strong when it comes to the concrete sector and, despite some of our members complaining, if you actually look at the production averages we had some huge years that were abnormal; if you take them out of the equation then we are actually not doing too badly. A few of our members invested in extra production capacity during the good times and now theyre looking a little bit silly with their huge machines, but without receiving the orders required to ensure they are being used.
But we have only lost one member in the last two years and we gained one from Zimbabwe, so there was very little attrition, which was quite surprising.
Surely concrete manufacturers are benefitting from the resource boom currently taking place across Southern Africa?
My personal feeling is that South Africa is badly positioned to make use of the boom further north; because of the logistics its a tough market to crack. But even though weve had a downturn, cement sales figures have stopped dropping and have equalised with a slight increase in the past
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three months. Before that they had been consistently dropping for three years. Were probably looking more at of an Lshaped rise rather than a V-shaped rise, so its going to be a slow increase.
lot of carbon dioxide; but if you dilute it with aggregate it can actually be relatively green. We are encouraging our members to use as much recycled concrete as possible, and one of our members in Cape Town uses up to 80 per cent of recycled material in his process. In the old days wed knock down a building and dump it, but these days it is processed through mobile crushers and often sent to people like this member who will use the material in block making, or for road material, so its not being wasted. TAB www.cmA.OrG.ZA
Is the industry attempting to improve its environmental impact and lower the notoriously high amount of CO2 it produces?
Some of our members are constantly looking at reducing their carbon dioxide emissions and with our partners at the Cement and Concrete Institute we are pushing sustainability initiatives. Cement is the second most used product in the world, second only to water, so it produces a
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ABOuT HAmisH lAinG

Hamish Laing moved to South Africa from the UK in 1982 as a qualified civil engineer and took up a role with the Department of Water working in concrete dam design. After two years he moved into the private sector and so began what he describes as a 20-year love-affair with concrete. Before joining the CMA in 2010, Laing had worked on the production and technical side of the concrete industry, as well as in sales and marketing, and product development positions for cement companies and ready-mix concrete companies. My background allows me to pick things up very quickly and I also have experience in marketing and one of the main objectives of the CMA is to market its members products, he says.
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muse news coming out o

everyone will jump on the train and it will become part of the telecommunications landscape. neTHerlAnDs AnD AfricA in fArminG AlleGiAnce Leader of the Netherlands-African Business CouncilBob Van Der Biljhas said that it may establish an agricultural institution, consisting of demonstration farms, in an attempt to support small scale farmers. A business seminar for Copperbelt companies was held in Kitwe to discuss the possibility of opening the facility in Zambia because its relationship with the Netherlands would allow it to become the largest exporter of agriculture produce in Africa. Van Der Bijls main objective was to find SME (Small and Medium Entrepreneurs) partners and he said: Each of the Dutch SMEs has its own area of interest, but what we want to do is establish relations between the Dutch and Zambian SMEs and then they can begin to look at their area of interest. These areas of interest range from cocoagrowers and brick-makers, to infrastructure and the mining industry. Mobile phone companies around the globe
NEWS IN REVIEW SECTION Title
AfricAn 4G-fOrce Africa could have its first 4G network by next year as wireless phone operators prepare to meet the growing data demand from smartphone users. are moving towards long-term evolutionary (LTE) networks that support high-speed wireless services, as smart-phones and tablet computers become the increasingly popular option for surfing the web. Lars Lindenhead of Ericsson in sub-Saharan Africasaid: You will see the first networks in 2012. It will surprise me if the big dragons such as MTN, Vodacom and Airtel dont continue developing. 4G is expected to reduce network congestion and provide a faster connection for the fast-emerging market of tablet computers and smart-phones. MTN, Vodacom and Safaricombig names in African telecomare already running trials of the 4G technology in South Africa and Kenya. It has become an interesting race to see who is first in Africa, Linden said, but sooner or later
SEPTEMBER 2011 The African Business Journal OCTOBER
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PHOTO CREDIT: TUPUNGATO / SHUTTERSTOCK.COM
Bill OsbornCopperbelt Show Society Chairpersonsaid there were many investment opportunities in Zambia, and the government and its partners were keen to invest in the construction of Multi Facility Economic Zones (MFEZ). BurGer kinG Fast food chain McDonalds Corporation has announced that its global comparable sales increased by 5.5 per cent in October this year. The company was only expecting a 4.1 per cent growth. The metric used to gage the corporations financial health compares store sales, but
excludes recently opened or closed stores. In the US, comparable sales figures exceeded expectations of 3.2, and instead rose to 5.2 per cent, in part thanks to its Monopoly game promotion offered to customers who purchase Big Mac meals, Chicken McNuggets and other selected products. McDonalds largest market, Europe, grew 4.8 per cent in sales figures after a 3.4 per cent forecast by analysts, largely driven by high performance in France, Russia and the UK. With more than 33,000 locations worldwide, McDonalds serves 64 million people in 114 countries.
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nAmiBiAn TrAVel neeDs Monique Swartfounder of the African Business Travel Association (Abta)has said that Namibias business travel industry is, very immature, but by no means clueless. An alleged mis-quoting in The Namibian newspaper cited her as saying that Namibias travel buying is, like a third world country and 100 per cent clueless. In response to these allegations, Swart said: Having travelled to Namibia for our launch event in July this year and having engaged with many of the travel industry professionals in the region, we are of the opinion that for the most part, the market is very immature, but by no means clueless.
She added that although there are a number of unprincipled travel agents in the region abusing the buyers lack of knowledge and acting unprofessionally, Abta does not believe that the region as a whole is corrupt. According to Swart, buyers in the region are not practical enough when it comes to looking at what they are actually paying for and she urges them to think carefully about potential hidden costs concealed within a ticket price. cHrisTmAs sA-VinGs THis YeAr A recent survey by Deloitte has shown that 62 per cent of local shoppers believe the South African economy to be in recession, 69 per cent are
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aiming to spend less money on Christmas presents this year, 78 per cent said they would buy goods on sale and 67 per cent would consider buying house-branded products. Deloitte surveyed a sample of 18,354 shoppers and further results showed that 63 per cent would focus more of their Christmas spending budget on food groceries this year, rather than gifts, and 38 per cent would use loyalty points earned throughout the year to purchase goods. Despite the caution implied by the survey, South Africans were found to be generally more optimistic about the 2012 financial situation than their European equivalents. Kay Walshsenior economist at Deliotte said: Although we are affected by the global recession, our positioning within Africa and the emerging markets of countries has cushioned us from some of the effect of the global meltdown. This may be responsible for some of the optimism being displayed towards 2012 by South Africans. Retail figures are also suggestive of some resilcHArles AnD cAmillA cOncluDe wHisTle-sTOP sOuTH AfricAn ADVenTure Prince Charles and the Duchess of Cornwall have finished a successful five-day tour of South Africa and are now heading for Tanzania. The royal couple were greeted warmly by the South African public and government officials. David Cordingleydirector-general of the British Councilsaid: The positive reception they received from the South African public helped cement the relationship and create a positive atmosphere. The tour took their highnesses to Johannesburg, Durban and Cape Town where they participated in meet and greet activities with members of the public, attended exhibitions and met children involved in the Nelson Mandela Childrens Fund project. Prince Charles attended a garden party hosted by Dame Lady Nicola Brewer in Hyde Park, Johannesburg, and was presented with a ience, with emerging middle-class shoppers playing a key part in the expected recovery, Walsh added.
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photograph album of King George VI and Queen Elizabeths visit to South Africa in 1947. The couple also experienced a traditional Zulu dance before lunching with King Zwelithini and being treated to a tour of the Phinda Game reserve. Their royal highnesses were able to raise awareness of issues which are close to their hearts, Cordingley said. These included trade between two countries, sustainable development, conservation, youth opportunities and unemployment.
rOllercOAsTer riDe fOr AfricAn Business cOnfiDence The latest African Business Confidence Index (ABCI), spanning 30 countries across the continent, has shown an expansion in the non-manufacturing sector, but the exact opposite in the manufacturing sector. The ABCI showed an increase of 3.6 per cent in the non-manufacturing sector, bringing its latest total up to 56.9 per cent, but the manufacturing index showed a decline of 1.6 per cent, leaving its latest total at 49.7. A level of 50 per
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cent and above suggests a notable expansion. The index measures business confidence across the continent through the examination of indicators such as production, employment, supplier deliveries, customer inventories, new export order and imports for the sector. Marketing manager of Wilkins Engineering in GhanaAgyenim Boatengsaid: Africa is gradually becoming the hub of a certain business trend championed by the Asian market. This has accounted for many imports into the country, thereby increasing stocks and turnaround times.
DiAmOnDs ArenT fOreVer In response to the decreasing confidence in manufacturing, Elaine Dugmorefounder of Kalahari Kanvas in Botswanasaid: With regard to exports, we feel that the global uncertainty is generally causing customers to think twice before ordering. The Oppenheimer family is selling its 40 per cent stake of De Beersthe diamond business it has been connected with for the last centuryto Anglo American for $5.1 billion. Nicky Oppenheimer denied claims that the matter had been planned for a long while.
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GHAnA GOes fOr GOlD Prince Kofi Amoabeng, CEO of UT Bank, Edward Effah, CEO of Fidelity Bank and Zoomlions CEO, Joseph Agyepong, all received top awards at the West African Ernst and Young Entrepreneurs awards. Held in Nigeria, the competition judged candidates in areas such as innovation, strategic thinking and direction, for their companies. It was the first time in 25 years of the event that Ghana participated. Effah was delighted to be recognised outside the Ghana border and said: It is further testimony were on track to achieve our vision of creating a world class Ghanaian bank, run and owned by Ghanaians, while also giving further encouragement to fellow Ghanaian entrepreneurs. Agyepong stressed his belief that Ghana is rich with experience and talent. The country must recognise people of this calibre and see how best we can all contribute to the development of Ghana, he commented. Country Leader of Ernst and YoungFerdinand Gunnsaid: They (the competitors) have learnt a Analysts suggested the Oppenheimers had
This has been over the last three to four weeks, he stated, There were absolutely no talks or any suggestions that it would happen before this. waited for the diamond market to recover before selling their stake, but Oppenheimer responded to any queries regarding the timing of the sale with: Why now? Because John Parker (Anglo American Chairman) made me an offer now. Oppenheimer explained his surprise at Parkers offer and said that it was a difficult and emotional family decision to make and that all reasons were fully explored. In the end all members of the family took the unanimous view that this was the right thing to do, he added. Since his grandfather founded the business in South Africa in 1902, Oppenheimer has an attachment to the country and although has no specific plans yet, is likely to focus his energy and profits back into the South African economy. I dont intend to fade away into the woodwork, he added, My golf is too bad to make it a regular occurrence.
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lot by going through a nomination process, being checked to make sure they met criteria, shortlisted, interviewed and further scrutiny. One of the two representatives for West Africa at the global Ernst and Young Entrepreneurs awards in Monte Carlo, USA, next year, will be Aigboje Aig-ImoukhuedeCEO of Access Bank. minD THe GAP Professor Barney Jordaandirector of the Africa Centre for Dispute Settlement, at the University of Stellenbosch Business School (USB)has highlighted that the wage disparity between top executives and entry level employees is considerably higher than other developing and even first-world countries. The PricewaterhouseCoopers (PmC) Executive Directors Remuneration Practices report outlined the matter earlier this year, and showed the continually growing wage gap as one of the largest in the world. Due to employee dissatisfaction with the disparity, Jordaan said: Employers are urged to review existing structures, as well as investigate the most appropriate method of remuneration for their company structure. The report highlighted a 23.3 per cent increase in pay for executive directors on the stock exchange, and the R8.25 million bonus received by CEO of Woolworths, Ian Moir, on top of his R5.312 million pay package for the average year. Jordaan agrees that the experience and high levels of responsibility held by chief executives do entitle them to higher pay, but he emphasised his belief that such large gaps between wage rates do not necessarily result in better performance and productivity. In order to improve performance and overall morale, Jordaan believes management and employee incentives, for workers at all levels, should be taken into consideration. TAB
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COVER FEATURE Gaddafi is deadhow it came about really doesnt matter
John Pinchings Stream of Consciousness:
Gaddafi is dead--how it came
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e about really doesnt matter
He is the pivotal figure in a countdown to World War III

Hunter S. Thompson, 1986
CONFRONTATIONS BETWEEN THE REBELS AND AL-GADDAFI IN AL BAYDA | PHOTO SOURCE: WIKIMEDIA COMMONS
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A FRENCH NAVY AS365 F DAUPHIN RESCUE HELICOPTER FROM FRENCH AIRCRAFT CARRIER CHARLES DE GAULLE (R91) TEST LANDS ABOARD THE AMPHIBIOUS COMMAND SHIP USS MOUNT WHITNEY (LCC/JCC 20). CHARLES DE GAULLE IS OPERATING IN THE MEDITERRANEAN SEA SUPPORTING THE COALITION LED OPERATIONS IN RESPONSE TO THE CRISIS IN LIBYA. (U.S. NAVY PHOTO BY MASS COMMUNICATION SPECIALIST 1ST CLASS GARY KEEN/RELEASED)
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It was, of course, quite appropriate that col. Gaddafi or moammar Khadafy or el-Qaddafior whatever his bloody name actually wasspent his last few minutes cowering in a filthy tube. Quite literally, a rat up a drainpipe.
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nation of his rein, at the hands of the people he betrayed for nearly half a century, as the most important detail.
Digital death
The instantaneously available nature of Gaddafis humiliation was also a reminder that in this age of digital technology and mass media, we are immeDespite all the self-awarded military honours, which decorating his regalia in those absurd publicity photos, when the game was up, the cowardly Colonel could only resort to grovelling. Shortly afterwards his last day on planet earth appeared on Gaddafis Wikipedia biography, and a communal sigh of relief blew through the North African desert. In death he was just as revolting as he had been in life. There was something inevitably macabre, unsettling and haunting about his final throes something that went beyond that of a regular human end. As his remains were dragged through the streets, the dark cavities that made up his facial orifices still seemed to emit traces of the life that had just expired; vapours of something akin to pure evil. It was horribletheres no denying it. It was a measure of this despicable mans depths that, even when all life had exited, he could still cast a terrifying death stare to the world. Ultimately, however, history will record the termidiately transported to news as it breaks. We, the watching world, were given the chance to witness a rotten tyrant brought to his knees through a form of instant justice and for manyincluding this author it was taken. I cant now unsee the footage and, I must admit, there have been a couple of mornings when the rubbery and repellent face of the colonel has revisited me, but I also understand on these days of reflection that I did not view his death as someone might witness a snuff movie. There was no perverse or particularly gratifying pleasure. Barbaric though the footage was, we need to see beyond the graphic violence and concentrate on what it symbolisesthe end of a drawn out and grizzly chapter. The pleasure was in seeing the uprising of a people and their chance for freedom; their opportunity to reach out and touch a future untainted by an abhorrent fiend. The Libyan people, in truth, had earned their right to do whatever they wanted with Gaddafi.
MARK III PHOTONICS / SHUTTERSTOCK.COM DECEMBER 2011 The African Business Journal 35
As his remains were dragged through the streets, the dark cavities that made up his facial orifices still seemed to emit traces of the life that had just expired; vapours of something akin to pure evil. It was horrible--theres no denying it
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This was not the time for drawn-out court cases. It only would have given him more time to polish his pantomime imagethe alter ego which has, all too often, detracted from the foul stench of his vile regime. After 42 years of hell the vast majority of Libyans wanted their new chapter to start immediately. Not in three years, or even three days. They wanted their nemesis to be destroyed in order to start anew. It is not for governments of other countries to decide whether justice had been done. The people were dancing in the streets of Libya and that told you all you needed to know about justice. The dawn of a new era had cast its light across Sirte and Tripoli and Benghazi and, indeed, over every man, woman and child that has ever felt oppressed by Gaddafi and him motley crew of odd-balls and psychopaths. In the welter of moronic outfits, bizarre womenfolk and mentalists sons, a cretinous, terrorist is gone and the world should be mightily relieved.
lofty positions the task becomes almost insurmountablebut never impossible. Overhauling a regime requires organisation, passion, courage and, not to mention, peoplethousands of them. This summer the first people to reach the end of their collective tethers andin many ways the real revolutionaries of this storywere the Tunisians. It was their determination which engendered the very hope that first emerged in Egypt and then, critically, in a suburb of North Africa called Libya.
What now for Libya

For Libyans, not just in Libya, but all over the world, this represents their inauguration into the free world. Once the party poppers have been deployed and the last of the fondant fancies have been consumed, it will be a time for slow reflection and a perusal of the possibilities connected with being a liberated country. In terms of becoming a trading platform and a credible economic force, Libya has tremendous potential. It is still an oil-rich haven and this remains a great foundation on which to build other global enterprisesthe sort of opportunities that have been denied to the people of Libya for so long. Rebuilding the carnage of international business relationships, destroyed by the regime,
The revolution that sparked a revolution

Freeing the world from villains is difficult at the best of times, but when those parasites are in
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THE DICTATOMETER
ADOLF HITLER
IDI AMIN
POL POT
EVIL BEYOND BELIEF
EVIL
HORRIFIC
WRETCHED
NASTY
MOAMMAR GADDAFI
THE DEVIL INCARNATE
BENITO MUSSOLINI
SADDAM HUSSEIN
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I have to say the reintroduced Kingdom of Libya flag is an absolute classic and, almost, worth waiting 42 years for. The stylish combination of red, black and green, with moon and star detailing, give it a grandiose aesthetic, which is at once memorable and--most importantly-- optimistic.
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The Blair witch project

Of all the people to have foolishly accepted Gaddafis hospitality, it is without doubt the image of Tony Blairs warm, vomit-inducing handshake that rankles most resonantly with the British public. No amount of oil or indeed forgiveness can condone such a disgraceful lack of judgement. Obsessed by legacy, permatanned, obscenely greedy and with an inordinate amount of blood lacing his handsnobody has met that damning assessment so resoundingly since one Richard Milhous Nixon. Theres something even more insidious about Blair, howevermaybe its the daft wife or that he was, in many ways, responsible for the Dianafication (yes even more than old Diana herself) of British society. Was it not he that tore dignity straight out of the heartland of dignified conduct? Hey, David Frost, isnt it about time you dusted off the clipboard and gave our inglorious exleader a good grilling? Think of the movie, ten years down the line! You would be played, of course, by Michael Sheen and Tony Blairs shoes will, naturally, be occupied byerMichael Sheen.
will undoubtedly take time. Creating trust is all part of the brave new world in which Libya and its new government now operate. There have already been encouraging signs, however, that former foes are keen to get round the table, play cards and eventually strike deals. America, China, the UK and countries throughout mainland Europe have all stated
that their intention to help galvanise the trade links with Libya. With so much optimism crystallising around the new nation, soon Gaddafi will become just another Halloween mask. A pitiful figure to poke fun at. In the meantime Libya will start to see business, opportunity and freedom as a way of life. TAB
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ZAmBi
united natio
Business
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on
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BUSINESS Zambia
With a new government and a fresh sense of optimism, Zambias destiny is, at long last, in its own hands
unTil recenTlY iT was difficult to see how Zambia would be able to fully emerge from its troubled past. Now with a new style of leadership at the helm, there is every reason for optimism, as the country reenergises its trading platforms and prepares for a fruitful future.
on September 23. Its victory had arrived three days before, with a landslide victory in the general elections. During the successful campaign it vowed to ensure that taxes were proportionate to the profits made by mining companies. Subsequently, the intrepid new Zambian Government has announced that it would consult with mining firms before changing the tax regime. It has also insisted that no changes will be made without a thorough analysis of the current climate faced by the industry. The countrys newly elected president, Michael Sata, insisted: We cannot destroy companies that are giving the country money. He added that the PF had some useful
Sculpting a brighter future

The inspiringly-named Patriotic Front Government (PF) has swept into office with a refreshing flourish; officially snatching the reins of power
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statistics and these would be tabled before the mining companies and used to come up with a taxation that suits everyone concerned. Meanwhile, the largest labour union in the Zambian mining industryThe Mineworkers Union of Zambia (MUZ)has approved the reintroduction of a windfall tax. It said that Zambia was not benefiting from increased prices of copper, under existing legislation. The union, which has a membership of more than 15,000stated that Zambia has already lost millions through unpaid taxes by mining companies. MUZ president Boniface Mukuka said the suggestion by the new government, to reintroduce the windfall tax for the mining companies, was a welcome move and should be supported by all Zambiansas a point of national pride and ethics. He also recommended that the new minister of mines and minerals development should take a fresh look at the employment of casual labour in the mining sector. Employment of labour on casual terms is not appropriate, especially as workers have been fired at will, and without benefits, he reflected. Currently mining companies in Zambia pay a three per cent mineral royalty tax, 30 per cent corporate tax and 15 per cent variable tax. In his inaugural speech (see pull out box), President Michael Sata added that foreign
investment was still vitally important to Zambia, as it not only created jobs but galvanised the economic empowerment of Zambians. We will continue to work in fair partnership with the investors already in the country, while also welcoming new ones, he said. It is our hope that investors will abide by the labour laws of the country ensuring that Zambians are not disadvantaged.
Ten commandments
Michael Sata, also represents the first elected Catholic head of stateand devout believerin the countrys history. Consequently he has stated that his government would religiously follow the tenets of the 10 Biblical Commandments. This government will be governed unconditionally by the ten Commandments, he revealed. Thou shall not steal, do unto others as you would like them to do unto you, Sata told parishioners at a church in Lusakas upscale Rhodes Park district. For the first time this country has a Catholic president and our government will support the church, Sata said, reminding those present that the nation was predominantly Catholic. He has also started his tenure with a pledge to crack down on the rampant corruption that turned voters away from his predecessor, Rupiah Banda.
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BUSINESS Zambia
Banda had campaigned unsuccessfully on the strength of Zambias economywhich grew 7.6 percent last yearand pointed to new hospitals, schools, roads and electricity projects as proof of his success. Sata, however, took 43 per cent of the vote, leaving Banda with only 36 percent. The new leader candidly harnessed the anger of the youth and the unemployed, promising them a brighter future under his guidance. Zambia gained independence from Britain in 1964 and Sata is its fifth president.
UNITA movement, which lost the war to the MPLA party of President Jose Eduardo Dos Santosa charge which had previously been refuted. Zambia relies on semi-refined oil imports from the Middle East, but has been studying plans to import crude oil from Angola and set up a new oil refinery locally. Sata has also indicated that links to Angola by road and railway could be possible in the near future. Meanwhile, Sata has also been seeking an apology from another neighbour, Malawi, for the way he was treated during a visit four years ago. President Bingu wa Mutharikas government arrested Sata when the then opposition politician travelled to Malawi to visit a former president. He was wrestled into a car and driven several hundred kilometres before being dumped at the border and told never to darken their doorstep again. As yet, an invitation to reconcile has not been made.
Building bridges
Another of Satas early missions is to administer some much needed relationship repairs. It has already apologised to Angola for backing the losing party in the countrys 27-year civil war. It is essential for Zambia to instigate good relations with its oil rich neighbours. Angola will also want access to Zambias copper resources, and this will act as a useful sweetener as Sata attempts to expunge years of tension. As I am talking, our first president, Dr. Kenneth Kaunda, is in Angola. I have sent him as my envoy to go and personally apologise to the president, Sata told Angolas new ambassador Balbina Malheiros Dias Da Silva. Angola had accused Zambia of backing the
China in their hands

The wind of change blowing through Zambia has also strengthened its relationship with China has been quick to make clear its willingness to form a partnership that would promote bilateral economic and trade cooperation between the two countries. Foreign Ministry spokesman Hong Lei said:
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China and Zambia share a traditional friendship and pushing forward cooperation will bring more tangible benefits for both parties. Sata is enthusiastic about a more fruitful partnership and welcomed Chinese business investment during a meeting with Chinas Ambassador to Zambia Zhou Yuxiao. The Chinese government backs capable and credible companies to carry out investment and cooperation in Zambia, Hong added, noting that China always asks its companies in the African nation to obey the laws and fulfil corporate social responsibility. China has been instrumental in building a number of infrastructure projects that benefit the people of Zambia, and its companies have created well over 10,000 jobs for locals, by conducting investment and cooperation on the basis of equality and mutual benefits. Somewhat immodestly, Hong claimed that this has effectively provided an impetus for Zambias social and economic development. In recent years, major Chinese companies in Zambia have maintained the policy of not conducting fund withdrawal, production cancellation, or job cuts, Hong said. TAB
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BUSINESS Zambia
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sPeecH TO PArliAmenT
Extract from President Michael Satas opening parliamentary speech Mr. Speaker, I am delighted to address this house on the opening of the first session of the eleventh national assembly under the Patriotic Front Government. Allow me to congratulate you, Mr. Speaker, on your deserved election to this esteemed position in the house. Let me also congratulate the deputy speaker and the deputy chairperson of committees of the whole house on their election to these important positions. In the same vein, I wish to congratulate all the honourable members of parliament on their election to this house. I equally congratulate the nominated members of parliament. The great task before us now, as members of this house, is to effectively contribute to the development of our great nation. I would like to salute the people of Zambia,
regardless of their political affiliation for peacefully participating in this years elections. Our peoples spirit demonstrates the well renowned peaceful character and maturity of the Zambian people and the respect which we accord one another as we elect our leaders. This is as it should be in a democratic country. The patriotic front government recognises that putting the country on the path for sustainable growth will require a well planned development agenda. Our development agenda is simple, as it emphasises the need for the government to promote pro-poor growth for the vulnerable in our society. My government, therefore, commits itself to streamlining the development planning and finance portfolios. Medium and long term planning will continue to be the guiding framework for the countrys national development, with priority given to key programmes aimed at poverty reduction and wealth creation.
sTrAnGe cu
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While the rest of the South africas econom
Business
urrencies
e world wallows in the bog of sustained financial insecurity, my is a different animal altogether.
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BUSINESS Strange currencies
wHen YOu sPenD your days, and often nights, sniffing around the endlessly fascinating business landscape of South Africa you realise that, what makes it tick, and how it reacts, is in a class all of its own. South Africa is a burgeoning market, hosting more global enterprises and international trading activity than any time in its history. Of course, it is therefore susceptible to the global factors inherent within the worldwide economic downturn. There are, however, several features of South Africas economy which set it apart from other countries. As a relatively young, enthusiastic and optimistic trading platform its economy tends to ebb and flow, peak and trough or shake and stir. It is more of an exciting roller coaster ride as opposed to a sustained crawl through the trenches of financial hardship. When the recession acts, South Africa reacts. Theres a pliabilitysome room to manoeuvrethat other more historically entrenched economies lack. There are, inevitably, extremely trying times in South Africa, but when there is a sharp decline, it has frequently been followed by an equally abrupt upturn in the fortunenot only of the economy but as recorded by individual companies. This
lends weight to the argument that South Africas street wise businesses have become accustomed to thinking quickly and acting decisively. In the brave new environment of a positive post-apartheid nation companies are typically less cautious and much more likely to invest, even in a high-risk situation. It is this kind of slightly renegade mind-set that has seen companies in South Africa emerge, survive and even flourish during a situation that, in other continents, prompted fear, confusion and failure.
a slightly renegade mind-set has seen companies in South africa emerge, survive and even flourish during a situation that, in other more established continents, prompted fear, confusion and failure.
Greek tragedy
You only have to look at the situation in parts of the Eurozone to see what happens when old habits die hard. The plight facing Greece has unfolded before our very eyes on news channels across the globe, culminating in furious protests from a
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BUSINESS Strange currencies
confused and disenfranchised Greek population, who see no way out of the financial meltdown. The Greeks can look back proudly at one of the oldest civilisations in the history of mankind and an ancient tradition of trading with their own currency, but the adopting of a single currency has seen its economy lurch hopelessly, before over-balancing completely. Its old system was simply not compatible with the multi-lateral, newfangled Euro. Even Pythagoras would struggle to sort out the current mess. After ten years of gobbling up the seemingly endless slip-stream of Eurosseduced by their apparently inexhaustible supplythe Greek economy has crashed horribly, with thousands unable to recover or reimburse what they had already borrowed, and many more unable to borrow more, in a desperate attempt to save themselves. Similar patterns have developed all over Europe and suddenly all Eurozone members are having to take collective responsibility for some ominous black holesstriking at the confidence of not only businesses butmore worryingly, the banks. This is where the brio and independence of South Africas economy soars where others flounder. Remember, it still less than 20 years since
the birth of the new South Africa. There remains a freshness in its approach and a togetherness in its spirit. Surely, this is less to do with coincidence and more in tune with a united nation.
This is where the brio and independence of South africas economy soars where others flounder. remember, it still less than 20 years since the birth of the new South africa. There remains a freshness in its approach and a togetherness in its spirit.
Survival
In TABJs daily communication with South African companies, in a broad range of industries, including property development, mining, healthcare, food & drink, transport and security, there seems to be a common denominator that links each and every onecore optimism. There is also a tendency among South African companies to cooperate during crunch times, preferring to see other businesses as allies rather than enemies. A mining company
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that can no longer afford to buy new machinery decides instead to rent equipment and suddenly lucrative contracts are exchanging hands that suit two or three companies rather than one. Property development companies, keen to continue galvanising their country, keep building. Building their futurequite literally. Its attitude is not down toolsits to pick them up and create great, visually astonishing but affordable housing. Black empowerment has also come to the party in a big wayeven in a time of tumult. People from previously disadvantaged backgrounds, who are now running profitable companies refuse to let a thing like a massive recession bring a halt to their business activities.
Further afield South African companiesoften encouraged by the government are branching out to India, China, Japan and America where new partnerships are stabilising any lingering threat of a catastrophic downturn. This never say die attitude provides the heartbeat and the soul of a country that sets a new standard in courage and discipline. The healthy attitude appears to be momentum and movement. South Africas economy is still growing and perhaps that will to reach the summit has prepared it for an obstacle that the UK, USA and mainland Europe are still measuring up. Mandelas mandate for South Africa in 1994 called for courage, while insisting anything is possible. Perhaps now, more than any other time, South Africa is proving just that. TAB
black empowerment has also come to the party in a big way even in this time of tumult. People from previously disadvantaged backgrounds, who are now running profitable companies, refuse to let a side issue like a massive recession bring a halt to their business activities.
BOk TO THe fu
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sPOrTs rePOrT
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andrew miskin, our man in South africa, peers into the cellar of the recent rugby World cup campaign and emerges with a bottle thatdespite being half fullshows great potential, as long as certain people can keep their noses
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SPORTS REPORT bok to the future
out of it.
AlTHOuGH refereeinG sTAnDArDs dominated the headlines, justice prevailed, as the host nation troubled the trophy engravers for the first time in 24 long years. Having said that, there were glimpses from the Springboks throughout the World Cup and especially in the disappointing semi-final against the Wallabiesthat on their day, they are still a fear-inspiring proposition; dominating the first phases and a demonstrating a typically brutal approach to the opposition attack. Although it may be boring to many, the Springboks play proper, traditional rugby, and to the purist that has its own allure. Looking forward though, we may well have seen the blossoming of a more expansive game, with the Wallabies stretched on several occasions during that strangely one-sided quarter final in Wellington; which the dominant side lost. Were it not for some average finishing, this would have been a 20 point victory, but the Boks will argue (and rightly so) that the founda-
tion was laid at the scrums and lineouts, where they were majestic. It may well be that a little more time in the saddleplaying through the phases, while kicking far lesswill be all that is required for South Africa to dominate, once again, at international level.
Greener on the other side

The passion and talent at junior level is phenomenal, and it is only a matter of time before the correct structureswith less political meddling at senior levelprovide the team with the freedom fulfil their potential. The disgraced coachP Divvy, as this strange little man is disparagingly knownhas apparently nominated himself for a further role in SA Rugby, quoting unfinished business. This is a truly undignified act from a man with an ego inversely proportional to his shoe size. He needs to step aside for those who have experience at the highest level, and will be able to lead the team without irrepressible figures such as Smit and Matfield, who effectively
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coached the team during De Villierss tenure. There are quality coaches in South Africa, and names such as Brendan Venter, Heyneke Meyer and Rassie Erasmus come to mind as worthy candidates, but should one of these gentlemen be appointed, they would have an uphill battle against political interference, from those with no clue about the game. None of these old school candidates would relish such a complicated task.
may well manage the political issues with less emotion than a Heyneke Meyer or especially the outspoken Brendan Venter. He came short with the press in England in hilarious fashion recently, and one would imagine that his buttons would be pushed even harder, should he take up a role with SA Rugby.
Burger king
In terms of players, the Boks are truly blessed, and the next few years should produce a golden harvest. There is little disputing that the machine with a heart, Schalk Burger, is the man that should be given the captaincy, as he represents all that is good about the previous Bok team, and all that is possible with the new incarnation. A few words of personal advice to the new Bok regime, if I may be so bold. Please put Pat Lambie at 10, and I guarantee, you will never look backwe already have the likes of Gio Aplon and Frans Steyn to play at 15. He is a natural, attacking No. 10. Put him there, give him security, and watch him dictate the new style of rugby that the Boks are inevitably moving towards. Sport certainly has the ability to lift or crush a nation, and rugby is no exception. After what was a promising, and then hugely disappointing RWC 2011 for the Springboks, as a nation we now await the dawn of an exciting new era. TAB
Getting a coach to South Africa

Jake Whites tenure was probably most notable for his clever use of the press, and hard-nosed diplomacy toward the powers that be in SA Rugby. It remains to be seen whether similarly unpopular choices for the head coach role will survive the same pressures. Indeed, would they even want it, especially when you consider the freedom provided in well-paid roles throughout Europe. With this consideredand Im aware that it is a sensitive subjectwhy does SA Rugby not look outside the homeland to fill this hugely pressurised role? Robbie Deans has stepped up to his task with the Wallabies admirably, as has John Kirwan with Japan, while John Mitchell has also got the Lions performing brilliantly. Admittedly, all these coaches are Kiwis, but they are excellent at what they do, and they
PreTT
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kruGer mP inTernATiOn
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TY flY
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AVIATION Kruger mpumalanga International airport
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When you arrive at KmIa, the spectacular views and friendly faces appear well before take-off. Fasten your seat belts and enjoy the flight as South africas most majestic airport transports you into wonderland.
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sOme AirPOrTs Are a bit like stepping into a Kafkaesque nightmare of sinister sterility. KMIA (Kruger Mpumalanga International Airport), however, want its holiday-makers and business customers to enjoy a dream-start to their trip. The company prides itself on ensuring that every jaunt leaves passengers wanting to reach for the skies.
earth quite like this charismatic little gem in the heart of the South African countrysidenear Nelspruit. Currently the scheduled airline services include links to Johannesburg, Cape Town, Durban and Livingstone; featuring 25 flights every day. Its original manifesto was committed to making the airport experience as pleasurable as possibleand thats exactly what the company still aims for today. To enhance the feeling that passengers are fully immersed in bush land there are even a couple friendly of impala wandering aroundapparently, theyll help you with your luggage, if you ask nicely. The airport has a 3.1 km runway, which is able to carry any kind of aircraft, up to the size of Boeing 747. There are also 80 permanently
Soaring to new heights

The idea for KMIA came about when the provincial government realised they needed an upgraded international airport, as a response to increased demand. Construction commenced in 2001 and, after all the licences were obtained, it was completed in October 2002. From the beginning it was very clear that there was nowhere on
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employed members of staff. Due to the delightful surroundings and family atmosphere that the airport promotes, the staff turnover is very low and many of the workforce have been carrying out their jobs from the very first day of business. They havent gone to look for greener pastures there arent any. Manager Marcello Martini has also been there since the beginning and he has in no doubt whatsoever about what makes the facility so magical. The airport itself is unique; there is nothing else like it in the country and its also got the largest thatched roof structure in Africa, he enthuses. It was designed and built to give passengers the feeling that theyve landed in a national park as soon as they get there.
Silver lining
The airport was initially designed to handle between 500-600 thousand passengers. Every year, however, passenger numbers and air traffic movement grow, as people discover an aviation masterpiece. When the directors started developing the airport they had a very definite vision, which has come to fruition in stylequite literally. Initially, the tour operators arrive with their open air vehicles, before taking the passengers to the lodge. This takes about an hour by car and throughout the journey they are driving through mesmerising countryside. By the time they arrive at the airport they are under the spell of the bush and seldom do holidays begin in such a spectacular fashion.
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KMIA has even featured in the New York Times as one of the most desirable places to visit (which is unusual for an airport!) and customers have regularly been known to take more photos at KMIA than they do on their holidays.
Marius Nel, who has also enjoyed a decade at KMIA, thinks the key to success lies in dispelling what an airport should be and embracing a different formula. In comparison with a big city airport, we are rural, so everything around us is a tourism venue. We dont have any pollution; we just have greenery and wildlife.
usually people find airports sterile and a bit depressing. at ours people have smiles on their faces and dont want to leave its an unforgettable experience. Im sitting in probably the most picturesque office in the country, adds martini proudly.
Flight future
One of the most notable achievements for the airport is the success it has had in competing as a private player in a market dominated by facilities owned and operated by the national government. If proof were needed, other privately owned airports have actually contacted KMIA seeking
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sound business advice. Even the newly built airport in Swaziland has visited to witness exactly how the staff are managing and operating the airport so smoothly. Aviation is a very exciting industry because its service-related industry and the challenge is always to keep exceeding expectations. We are competing against big commercial airports, but because we are private, we can make our own changes and charge our own fees. KMIA can also increase output at the moment without an increase of manpower. This makes us very competitive, explains Martini. In the next few years KMIAonce it has reached 300,000 customers per yearwill www.mceGlOBAl.neT be expanding on the size of the apron, before extending the terminal building. Its certainly an exciting time to be on board. KMIAs story shows that in order to excel in any industry the prerequisites are heart, soul, passion andif you can possibly get themsome interesting animals. No wonder this stunning airport is the very model of a high flyer. TAB
HYunDAi AuTO
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TRANSPORTATION hyundai automotive
In motoring terms hyundaithe jewel in Koreas motoring crownis a byword for quality. mature, modern, elegant, reliable and smooth, hyundais vehicles have been dazzling drivers for decades
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in TODAYs cOmPuTeriseD world, things often move forward at a bewildering pace. Hyundai have always produced cars that set the pacequite literally when it comes to modern motoring. Using all its experience and nous the company has managed to maintain its traditions, while moving with the times and meeting the requirements of a demanding marketplace. With a bit of fine tuning the company overcame its difficulties at the start of the century and has now emerged phoenix-like to park among the top manufacturers in the country.
Reinventing the wheel

Its 2011 and Hyundai South Africabased in
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the heart of Johannesburgis enjoying a renaissance. Its loyal troop of over 150 employees have enjoyed their greatest year in South Africa to date. Sales have soared and everyone is happy especially the customers! The brand was first launched in South Africa back in 1995. This early incarnation ran until the start of the new millennium. It was then taken over by the current management in April 2000 and hasnt looked back. Since then it has been enthusiastically providing Hyundai motor vehicles (from light and medium commercial vehicles, up to 4 tonnes), while also distributing parts and accessories.
Marketing Director Stanley Anderson has witnessed an amazing turnaround in the companys fortunes. Weve shown huge growth in the past 11 years. After the previous liquidation, there was a lot of negativity around the brand, he says. When we took over, The Sunday Times, said nobody in their right minds would ever buy a Hyundai, but now were in the top three, out of 50 brands. The reason for Hyundais success in the last decade has primarily been because of its brilliant and inspiring products. A notable turning point was the launch of the Tucson, which was pivotal in re-establishing the brand and being embraced, once again, by the motoring market.
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Proud to be associated with Hyundai Automotive

BTM started in 1978 manufacturing bullbars, towbars and roll bars to the automotive industry. As with any company we had the privilege of going through the ups and downs the industry threw at us. As from the 1st of October 2011, BTM is a proud partner in Trimas Corporation which allows us to be very competitive in the market in terms of OEM products. Trimas Group, consists of four companies that produce high quality, custom-engineered roof racks and towing products for the Australian-based original equipment manufacturer market. Through links to its international TriMas partners, the unit has world-wide access to advanced product research, development and technology. We are now able to oer products from Hayman Reese, Rola Roof racks, Parkside etc. The ability we as a South African manufacturer, now have to compete with overseas technology and products will put BTM in a dierent league to local suppliers. We trust that this will enable us to grow the local OEM market and to oer above average products and service to our various customers
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From that steady re-entry Hyundai has followed up with a series of absolutely world class vehicles; leading the market with models such as the Accent, Santa Fe and the i35. These inventive and stylish creations were largely responsible for fine tuning the brand and creating a new design language for Hyundai. Another development has been the design centre in Germany, which has proved to be a nerve centre of innovation, panache and kudos.
a reputation for unconditional quality and outstanding aesthetics. The new status for Hyundai its brand direction is modern premium. This is a model in which we offer a premium quality product that is an acceptable or affordable price for as many people as possible, explains Anderson. We believe that premium quality shouldnt just be for the elitist few. The insistence on a superior build has also lent real individuality to the brand. Indeed, the distinctive appearance of Hyundai vehicles has been mightily refreshing in an industry where cars have started to become indistinguishable. As well as individuals and couples, families
Premier league status

The new models have sold in their thousands and consequently the company has developed
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have also taken a shine to the contemporary Hyundai range. The cars are at once practical and desirable, therefore providing modern families with the ultimate performance from their vehicle. Another vehicle that has sold in very large numbers is the versatile Hyundai H100 pickup truck. It provides the ideal solution to South Africas unforgiving landscape and multitude of labour intensive industries like mining and property development.
16 per cent, the success of the last few years is set to continue unabated. Globally the demand for the Hyundai brand has increased year on year, and there is every chance that we will increase the number of plants in South Africa, enthuses Anderson. Next year we could easily increase the current output by 10 or 20 per cent. Having been at the helm for 12 years, Stanley has put plenty of miles on Hyundai South Africas clock. While at the company he has overseen all the vast array of gear, colour, oil and engine changes, but even he couldnt have envisaged quite such a smooth and sustained period in the fast lane.
Fast forward to the future

With a great many sales already on the books, and growth in the last 12 months rising to the tune of
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It has been quite remarkable. Im honoured because most rental companies didnt want to look at us 10 years ago, and now were right back at the top where we belong. It just goes to show, theres no substitute for class. Surely an important lesson lies in Hyundai South Africas story, which every company should take heed of. Sometimes you need to go in reverse before you start accelerating. TAB worldwide.hyundAi.com
fATs THe w
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on the eve of its 20-year anniversary Forwar
look back on a truly global service, while alw
TrAnsPOrTATiOn
wAY TO DO iT
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rding african Transport Services (FaTS) can
ways looking forward to the next delivery.
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TRANSPORTATION Forwarding african Transport Services
keeP THe ecOnOmY moving! Its been the central message from government, politicians and virtually everyone you happen to bump into. FATS is one of the few companies that can claim to have done precisely that. Indeed, motion, progress and movement is at the very heart of everything it does.
We are quite the opposite and excel in different areas. Trust is an important aspect of any partnership, and if you cant trust your family who can you trust? explained Caron. My sister is really a people person and Ive got a technical background. Its a good cop, bad cop scenario! With the new management team, the key has, again, been a good mix of characters that bring different elements to this ambitious company.
Travel companion
For almost two decades FATS has shipped, flown, packed, delivered and stored cargo all over the world. Thousands of customers have relied on its multitude of services to ensure their vital wares arrive safely, securely and promptly. No project or item is too awkward or obscurethe team at FATS thrive on a challenge! The company has a vast array of transport solutions to suit customer needs both domestically and internationally. The company is situated in the heart of Durban and initially built its reputation in South Africa, while going on to expand into central Africa and globally. Its offering of road, air, sea and specialised freight services also encompass a multitude of solutions and strategies. Caron Harris and her sister, Elainewho has recently retiredstarted the business in 1992 and since then they havent looked back. Their partnership has been absolutely pivotal to the success of the company.
Driving forward
The companys speciality and niche market when it first ventured into the business was to deliver cars to central Africa by roads, up to DIC and down to Zambia, Zimbabwe, Malawi and Mozambique. It gained a fine reputation for getting jobs done professionally and negotiating journeys in the most efficient way possible. Its domestic success has given rise to exciting leads into China and India. Naturally, Caron is really very excited about an increasing global enterprise. Its about broadening our horizons and specifically choosing partners worldwide. Now we really can offer a full logistical solution now, growing our sea and our air side of business, enthused Caron. In order to keep up with the ever-increasing demand, FATSs main truck deployment station partner in central Africa has grown from two vehicles to the 258 it has today.
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TRANSPORTATION Forwarding african Transport Services
The company has also maintained continuity with its workforce, while also utilising the skills of contract and seasonal workers. Its a system that offers exactly the level of flexibility required within a modern haulage business. This level of knowledge and planning has enabled the FATS to actually thrive during a potentially turbulent time. Indeed, its last quarter report saw an increase of 68 per cent, making it the best year in the companys history.
Pivotal to this continued success has been the ability to harbour the innovation and impetus of a multinational company while retaining the ethos of a family business.
Writing on the wall

The company is always looking at new marketing channels and has already had some successful radio-based campaigns. Recently, however, FATS came up with a brilliant plan to
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350 Umhlangane Road, Riverhorse Valley, Effingham, Durban, South Africa T +27 (31) 580 2000 F +27 (31) 569 6254
www.citycouriers.co.za
It certainly has been an incredible journey, which started with an idea from two sisters, and has grown into an international operation that inspire young people, connect with street art and imprint the companys name further on to the urban landscapequite literally. The stroke of genius was a graffiti competition in which three artists committed their designs to a huge surface, in the shape of the unmistakable FATS logo (a slightly over-nourished woman hauling some cargo). The event attracted hundreds of guests and, once again, the word on street was that FATS continues to break new ground. continues to gain momentum. With so many miles on the clock the team have shown no signs of slowing down and are more excited than ever about delivering a brilliant service. TAB
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securTY
G4s
Stars of ccTV
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SECURITY G4S
When your livelihood depends on places, products, people or possessions, security is everything. This is exactly why G4S thrive on producing intelligent systems, designed to give its customers complete peace of mind.
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SECURITY G4S
in TODAYs cOnsTAnTlY changing, technologically advanced world, optimum security is a priority for most businesses. Hi-tech solutions and forward thinking have replaced padlocks and crossed fingers, and G4S have been at the epicentre of the revolution.
As well as its South Africa operations G4S operates in 29 countries across the African continent, including Kenya, Ghana, Mozambique, Namibia, Tanzania, Mauritania, Malawi, Uganda, DRC, Morocco and Nigeria. This unique network of operations has created an excellent platform to support global customers working in key sectors such as oil, gas, ports and mining.
Key notes
G4S is a global risk management consulting and specialist security company, formed through the amalgamation of Wackenhut, Group 4 and Securicor in 2004. The merger has resulted in a formidable business, with decades of combined experience and expertise, employing well over half a million people worldwide. The G4S Africa headquarters are based in Pretoria, providing a vital hub linking all the African countries. Trusted by well over 13,000 customers in South Africa, the company provides an unrivalled range of security services to a wide spectrum of customers in both public and private sectors. It specialises in solving security and safety in cases where the threat is considered particularly high. Through the development of long-term partnerships with customers in key sectors, the company devises strategies to help clients deliver their business objectives, manage risks, protect critical assets and improve service delivery.
serVices
Working across a wide range of geographic markets and business sectors, these bespoke services include: Aviation security Security systems (CCTV, Access Control/Time & Attendance, intruder detection, fire panels, video analytics) Remote off-site monitoring (ROM) Alarm monitoring & response Close protection duty Journey management Special Cargo Handling Loss reduction software Security management software Personnel screening & vetting services Cash solutions
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JHB/E
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/
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SECURITY G4S
Moving with the times

In a rapidly evolving country like South Africa, G4S has had to constantly re-evaluate its service provision, as new and exciting technology emerges. It is this meticulous approach which has been pivotal to the companys success, according to Marketing Manager Daphne Du Preez. A stand-alone guarding service is not conducive to sustainability, especially when technology is so progressive and continues to evolve. Any security service provider not already recognising this trend will be left trailing behind, she says. With the rapid advancement of technology, G4S has ensured that we maintain our lead in the market place by designing our own innovative product lines and software packages. Due to recent economic trends, which have dictated that customers need to cut costs without increasing risks, G4S has incorporated creative combinations of technology and manpower to keep providing exceptional products that wont break the bank.
In addition to the financial circumstances, the company has also adjusted in accordance with the growing emphasis on health and safety management in the workplace. More and more customers require us to comply with, participate in and assist with this aspect of the business. Health and safety now encompasses additional infra-structure, fire-fighting and first aid. G4S has risen to the challenge and has a robust approach, employing qualified individuals to drive these essentail areas, explains Du Pleez.
Green days
The impact of climate change and the everincreasing pressure to reduce carbon footprints, has also changed the way G4S operates over the last couple of years. Indeed, when it comes to measuring, reporting and reducing greenhouse gas emissions, G4S is the leader in its field and, since 2009, the company has set itself a series of challenging targets to increase sustainability.
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In Sa alone we have achieved an eight per cent reduction in our employee intensity measurement, installed recycle bins, adopted an electricity monitoring system and implemented green office equipment procurement, as standard, enthuses du Preez
In the last three years G4S have received no
Planning ahead
G4S is one of only 20 FTSE 100 companies that have delivered consecutive earnings growth over the past five years, demonstrating not only the inherent strength of the business and market position, but also its sustainability. At the heart of the companys ethos is an insistence on integrity, supported by its recognition as an ethical trader. In the New Year and beyond the company will continue to bolster its impressive African footprint by running operations in Tunisia, South Sudan, Ethiopia and Liberia.
less than 39 industry awards, recognising the quality of its people, training and security solutions. Proving that it is running rings round the opposition the company has also been announced as the Official Security Services Provider to the London 2012 Olympic & Paralympic Games. After such a rewarding and progressive few years, G4S continues to make great strides in galvanising the industry. Suffice to say, embracing the future has never felt so secure. TAB www.G4s.cO.ZA
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sTAY inTe
The kin
refriGerATiOn
YcOlD ernATiOnAl
ng of cool
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REFRIGERATION Staycold International
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crikeyits freezing inside! Which is just how Staycold International like it. after all, the company have been staying cool for over three decades
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REFRIGERATION Staycold International
in An AGe where fresh produce has never been more desirable, the human race has become ever-more reliant on refrigerating, chilling and freezing facilities. Extending the life of food and drink is exactly what Staycold has been doing since 1979 and, to this day, it remains passionate about reinventing cooling appliances for the next generation. Suffice to say, with this company, its all in the name.
the perfect temperature. During 1979 punk rock reached its summit, Sigourney Weaver tackled alien life forms and Byorn Borg fought off rampant teenagers at Wimbledon. The Swedish legend, however, wasnt the only iceman making an impactit was also the year in which a pair of ambitions directors formed Staycold International. It was the beginning of a brave new era and a great time to be involved in an evolving industry Since those halcyon days the company has manufactured a vast array of display coolers, freezers and smaller chest-based coolers. The company enjoys a fine reputation for quality,
Cold play
What you really want when youve got a six pack of beer andof course some fruit and veg in the fridge, is for everything to be a at
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100 REFRIGERATION Staycold International
reliability and versatility, often releasing new, modernised models, incorporating cutting-edge technology. Reassuringly, its range of products are as confident and ultra-cool on the outside as they are on the inside, with a futuristic appearance, E Glass and frontal ventilation. Whatsmore, the rate of cooling is up to three times faster than rival units. Ranges include both hinged and sliding door varieties, while the open display, multi-deck option promotes items brilliantly in a retail environment. There are also units available, which can effortlessly maintain sub-zero temperatures. Camping fridge freezers add another dimen-
sion to the brand by offering a portable and good-looking solution, which allows customer to dine in style, wherever they are. The company can also produce units to the exact specifications required by customers including details like multiple shelving, anti-perishable silicone, galvanised steel interior, polyurethane insulation and illuminated header lights. In addition, the companys products also have a life span and price tag, which freeze its rivals outquite literally. Currently the most popular models come with HD and SD prefixes. Staycold has always been a determined and
DECEMBER 2011 The African Business Journal 101
talented workforce of 130 throughout 2011. As well as supplying the domestic market, the company also provides display coolers to major bottlers, while also exporting coolers to both the UK and Australia. Staycold researchers are very interested in adapting products to suit the specific environments and climate, in different countries and regions. One of these ground-breaking creations is a unit specifically designed to handle African conditions. It is able to perform even in areas with a poor power supply, high heat and humidity. Staycold products actually remain at three degrees even at tropical temperatures. ground breaking leader in a very competitive field. The competition has increased as the search for an ever better, more efficient unit continues to gather pace, explains Manager Benitto Nel. This has made us expand our research and development efforts. Quality and long life cycles have always been of paramount importance to us. Just about every manufacturer has by now copied the sliding door principle pioneered by us, he adds. Various changes to compressors, glass, refrigeration CFC gas variations, lighting and using technology uniquely, have helped the company improve the effectiveness of every unit. We are determined to keep exploring the African market, bringing our products to other countries and continuing to supply our neighbours, enthuses Nel.
Factory record
Staycold has always seen the benefit of moving with the times and constantly reinvests in the companyenergising its buildings, products and employees.
Cool customers
The company has two nerve centresin South Africa and Englandand has employed a multi-
The factory has recently been extended in order to ensure the smooth running of production and guarantee optimum quality control. The extension involved the addition of 4500 square meters to the operation. Meanwhile, the company is also determined to keep promoting environmentally sound practices and solutions. Staycold has achieved record production levels and proved to, both ourselves and our customers, that the company can adapt quickly, recover quickly and respond to customer demands, says Nel. We know that we can deliver and with that belief the company will continue to manufacture excellent products at a high rate; enabling us to further expand into even more markets. Over the next few years the company will be striving to develop the global brand, keep exceeding customer expectations and making sure they remain in the premier league of refrigerating technology. As long as they have ice running through their veins the Staycold staff will make sure your goods stay cold. TAB www.sTAYcOlD.cO.ZA
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l.A
The
cOnsTrucTiOn
A. sTAAl
steel sovereign
108 CONSTRUCTION l.a. Staal
Western cape-based steel construction experts la Staal is putting more than two decades worth of experience into each of its projects and, from its base in the South african province, is playing a leading role in the countrys steel industry.
since iTs fOrmATiOn in 1988 LA Staal has grown from humble beginnings into one of the Western Capes leading experts on steel construction. Today the company designs, manufactures and constructs a range of steel structures, from factories and warehouses to packing sheds and cold storage complexes.
It is also experienced in outfitting shopping centres, schools, sports pavilions, community centres and a range of other buildings that require steel structures or components, and provides repair and extension services for existing structures. With 24 years of successful business development under its belt LA Staal is using its experience to stay ahead of the competition. You learn so much over the years that you use it try to and stay ahead of your competitors, says chief executive officer Charles Lambrechts. At the moment we are designing and manufacturing what the client wants. We dont manufacture in bulk like a lot of
other people, but we do manufacture to the clients specifications, and from our side we always try to use our expertise from over the years to try and help the client save money. LA Stall utilises its skills and services to work with a range of businesses from Western Capes significant agricultural sector to industrial and commercial operations from across the province and beyond. Despite so many different building materials being available to contractors and building experts nowadays, the advantage of using steel, notes Lambrechts, is that it can be used in wider spans between columns than a material such as wood, allowing for wider and structurally-sound structures; something that is vitally important when working with big-name clients with plenty of products to store.
Out in Africa
From its base in Western Cape, the company has also provided structures to companies outside of the state and also in other countries including Angola. The work that we normally do in Angola involves putting up churches, agricultural projects, cold storage facilities, and factories, remarks Lambrechts. But the key to the companys successful business model, Lambrechts says, lies in providing customised steel construction and its involve-
110 CONSTRUCTION l.a. Staal
ment from early in the construction stage of many of its projects. Over the years we have built up a client base and by keeping many of our customers happy we have found they have come back to us, he notes. If you provide them with good quality work and theyre satisfied then, at the end of the day, they will come back to you.
cheaper option that often find themselves left without help after a building has been put up, such as a leak or some of the sheets blowing off, comments Lambrechts. When one of our customers is in trouble we will be there to help them, he notes. Even if is just one sheet that requires replacing, we will replace it, he remarks. If theyve got a leak, then well go and fix the gutter. With its 200-tonne monthly capacity, LA Staal is able to run up to 40 projects at any one time a number that it is unlikely to increase in order to remain focused on quality, rather than quantity. If one of our clients asks us to put up a door or change something or a structure, then we
Structural success
In building long-term relationship with its clients, LA Staal is working to ensure that the service it offers its customers includes maintaining the steel structures it has erected. There are a lot of companies that take the
must be able to have the capacity to help them, says Lambrechts. We cant just chase money at the end of the day we must service our clients and we must provide them with back up.
towards the commercial side and we are looking towards the commercial sectors to make up for what we lose in agricultural projects. By providing a wide range of service options and reliable products to customers from a variety of industrial backgrounds it is no surprise that LA Staal is finding itself in demand from businesses looking for professional assistance. In providing such services and products LA Staal has ended up playing a leading role in the development of many industries across the southern tip of the African continent. TAB lAsTAAl.cO.ZA
Strength in sombre times

The effect of the global economic downturn on the steel industry has led LA Staal to shift its focus towards the commercial markets. It has affected us and our turnover is down, because in the Western Cape the economy starts with the farmers and if the farmers are struggling, then the rest of us will struggle, remarks Lambrechts. As the bulk of our work is within agriculture, we have tried to shift our focus a little more
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sTef sTOc
buildin
cOnsTrucTiOn
fAnuTTi cks HOlDinGs
ng bridges
114 CONSTRUCTION Stefanutti Stocks holdings
as one of South africas leading construction groups, and with the capacity to deliver a range of projects in some of africas toughest markets, Stefanutti Stocks is playing a leading role in development the continents construction business.
wiTH mOre THAn 12,000 employees on its books and the capacity to deliver a variety of projects across Africa, Stefanutti Stocks (Pty) Ltd is playing a leading role in the transformation taking place across the continents construction market. From its South African base, the multi-disciplinary group is aiming to become the preferred
construction partner for all of its stakeholders as it establishes a comprehensive track record of industry excellence. Along with its Level 3 B-BBEE contributor accreditation, the group has been awarded a Grade 9 rating from the South African Construction Industry Development Board (CIDB), proving that it has an unlimited tender capability.
Constructing connections
From the construction of a 129-room hotel in the South African town of Orange and improvement work on Bospoort Dam, to the widening of Ben Schoeman Dock, Stefanutti Stocks has
The keystone to a lasting partnership is understanding.
As primary banking partner to Stefanutti Stocks Holdings Limited for over 20 years, we are delighted to be associated with one of the top-tier companies in the construction sector. We pride ourselves on delivering exceptional service and customised solutions based on a sound understanding of your business needs. For more information contact us on +27 (0)11 294 3279.
CORPORATE
CORPORATE BANKING
Nedbank Limited Reg No 1951/000009/06, VAT Reg No 4320116074, 135 Rivonia Road, Sandown, Sandton, 2196, South Africa. We subscribe to the Code of Banking Practice of The Banking Association South Africa and, for unresolved disputes, support resolution through the Ombudsman for Banking Services. We are an authorised financial services provider. We are a registered credit provider in terms of the National Credit Act (NCR Reg No NCRCP16).
NET#WORK BBDO 8012667
been utilising its skills and abilities across a wide range of projects in Southern Africa. The company has established a presence in Angola, Botswana, Malawi, Mozambique, Namibia, Swaziland, Zambia and Zimbabwe, as well as its home base of South Africa, and has even ventured further north. In partnership with Stefanutti Stocks Geotechnical, Stefanutti Stocks Civils recently completed a project in remote Sierra Leone to construct three rail bridges. Tendered by African Minerals Limited, the contract was part of a 120 kilometre railway line project with the aim of transporting iron ore from a
mine in the Tonkolili district to the port of Pepel. The joint venture was completed and handed back to the client on time despite a tight schedule and logistical problems associated with the isolated nature of the project. Each of the three structures underwent a geotechnical study, which resulted in the decision to installed permanently-encased oscillated piles on two of the bridges, and permanently encase auger piles on the other. Stefanutti Stocks Geotechnical approached Bauer Germany to supply two BG28 piling rigs and one MC64 crawler crane along with specialised equipment for piling through boulders;
116 CONSTRUCTION Stefanutti Stocks holdings
STEFANUTTI RECENTLY COMPLETED A THREE-BRIDGE PROJECT IN SIERRA LEONE.
equipment that ensured the piling phase of the project was completed successfully and on time. Two of the bridges, known as Tonkolili and Tabai, consisted of three 22-metre-long spans, while Rokel Bridge consisted of five 22-metrelong spans. According to the company, the single biggest challenge on the project was its remote nature and the resulting logistical issues associated with it. Another challenge it was forced to overcome was the annual rainfall Sierra Leone experiences. With two seasons a year rotating between dry and wet conditions, the wet season would end up testing the company to its limit. Despite restrictions being placed on the schedule of the projects by the wet season, which lasts from July to December, the construction firm was able deliver each of the structures on time within a six-month time frame.
building construction, mechanical and electrical power structures, public private partnerships, services for the mining industry, and road and earthworks projects. On its website the company declares: We will create a desirable place of work, a natural home for creativity, enthusiasm and personal safety. Through its projects, such as the three bridges development undertaken in Sierra Leone, the company has proved time and time again that it is able to deliver on time, even if working under difficult conditions and in remote environments. TAB www.sTefAnuTTisTOcks.cOm
Modelling brilliance
As one of South Africas leading construction groups, Stefanutti Stocks is looking to maximise its shareholder value as it aims to build a sustainable business presence in Africa, as well as in targeted international markets. As a multi-disciplinary construction firm, the company is well positioned to manage a range of projects of any scale, including large-scale
Where the streets a

If your business specialises in one specific area, expertise is the most essential commodity.
c.e.l. PAVinG
PAVinG
are paved with gold
G PrODucTs
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120 PAVING c.e.l. Paving Products
lAYinG THe fOunDATiOns is an important part of any business. When youre in the paving game its something you do on a daily basisquite literally. C.E.L. Paving Products places its reputation beneath the feet of its customers, and is proud to put the companys name to each and every one of its paving stones.
fresh objectives established, the company was able to increase its flexibility by making materials that were out of the norm. Alongside the generic range the company has released some truly original varieties into the market.
Blockbusters
C.E.L. has also started manufacturing a landmark range of retro style materials. More of a European style brick, it consists of cobbles and vintage pavers, which are mottled in colour and fit instantly into the landscape. In addition every single block is a different shape and colour. Their nostalgic appearance has proved a massive hit with South African customers.
Chip off the old block

The company began life as a brick and block masonry manufacturing company, selling all the associated materials. It was originally formed as Clauds Brickworks by Claudino Gorgulho and his son, Claude. Gradually, however, Claude realised that, in order to see off the competition, they needed to specialise in one areaand do it brilliantly. My brother, Claude, started talking to people in the industry and found a lot of potential in producing only segmented paving bricks, explains Lenny Gorgulho, co-owner of C.E.L. He recognised that there was a gap in the market for specialised paving materials, so ultimately he decided to forgo the brick and block side of the business and specialise solely in the manufacture and development of paving bricks. The new operation began in 1998 when the company moved to new premises in Blackheath, Cape Town, where it now has two plants. With the
as a result of developing the mould and mix design, were the only company that produces the range. Its made with roving edges and a non-uniform surface, so once its laid, it looks old-fashioned and rustic, enthuses lenny. When it first came onto the market people found it to be a refreshing and aesthetically beautiful alterative. They loved its uniqueness.
Encouraged by its popularity the brothers galvanised the manufacturing process further
122 PAVING c.e.l. Paving Products
by introducing a vast array of different finishes, textures and colours.
plants has proved essential since the introduction of the new, specialised products. The main drive for this ambitious company is to keep getting better, remain at the forefront of paving technology in South Africa and for customers to automatically think of C.E.L. products before anybody elses. Pride also comes in the constant attention to quality, and Lenny believes that this has been pivotal to C.E.L.s success story. We dont cut corners with our costing on anything; people rely on us because of our standards in the industry.
Good foundations
The company currently employs 70 staff and every year its efficiency increases, supported by quicker production, smoother packing and advances in technology. C.E.L. also has the advantage of running a day and a night shift at both plants. This ensures that the constant supply of materials to customers is maintained. The efficiency of the
This insistence on taking responsibility has engendered the sort of trust among customers that is absolutely priceless in the current market. The C.E.L. brothers refuse to sacrifice the craft and skill required to make excellent products andrather than put profits before qualitythey have let the company grow organically, at a manageable speed. Customer service is the most essential element of the business and thats how you can ensure quality, ensure your product selection and ensure that the customers are happypeople appreciate the fact that they can come to us directly, Lenny concludes. It has been this very approach which has enabled the company to continue to see out the recession and it looks forward to more prosperous decades as one of the Western Capes most Our paving has been recognised for being among the best in the country and we recently won three national awards as well as the premier award trophy for paving at the 2010 CMA Awards for Excellence competitionan unprecedented feat! distinctive, entrepreneurial and successful building material visionaries. The next few years are sure to provide C.E.L. with further adventures, as it explores exciting projects and new horizons; and branches further into the African market. Paving for the future has never felt so good. TAB www.celPAVinG.cO.ZA
Solid performance
In order for C.E.L. to become leaders in the field it has employed the combined practices of a major corporation, while retaining the ethos of a family run business. The brothers remain the faces of the companyquite literally.
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OJ cOns
new kids on
PrOPerTY
n the block
sTrucTiOn
126 PROPERTY oJ construction
Keeping it in the family is always a good platform for a business. The two brothers that run oJ construction have found it the perfect foundation for their booming property development business.
Ockie AnD AnDre Oosthuizen are a pair of ambitious brothers who are rapidly cementing a reputation for the creation of spectacular high-end buildings in Namibia. Running a young company has allowed them to take stock of the property market and deliver fresh ideas, high standards and, above all, incredible properties.
Creative Intelligence...
Solid ground
OJ Construction began its journey when founder Ockie left his previous property developing company to explore his vision of producing upmarket housing and superior quality structures. Shortly after, he was joined at the companys helm by brother Andre, who shares his enthusiasm for changing the Namibian landscape, and even contributed the design for OJ Constructions eyecatching logo. Keeping it in the family has certainly proved to be a wise decision and Ockie has never regretted leaving the safety of his previous job. I worked for a big company with massive
construction projects where, due to the scale, there was often a bit of quality left out. I wanted to start a smaller company where attention to detail and a high standard of finishing were guaranteed, says Ockie. Driven by this admirable manifesto, Ockie began taking on projects in 2006. Immediately the company started building and renovation work, while also overseeing a couple of small developments. These assignments involved four town houses and several small office blocks, and proved to be a great way of establishing OJ Construction as a front runner in creating imaginative and practical structures.
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Email: wibeku@iway.na Lafrenz Industria, Tel: 061-261 810/215 752 Fax: 061-261 811
www.wibeku.com
After impressing in those vital early stages the company has expanded considerably, doubling its turnover every year. By the fourth year we were up to 40-50 million and were now standing at about 100 million for this year, enthused Ockie. Next year its going to probably increase to 200. Although were expanding nicely, I want to stay within the borders of Namibia, ensuring we can keep reaching the same high standards.
complex. The structure is comprised of mixed use units which are cleverly split into bachelor flats, one bedroom flats and office space. OJ Construction buildings are certainly adding some genuine class to the Namibian landscape. In Namibia there are a lot of high rise buildings going up and many of them are mixed use. Were doing two projects now and next year weve got at least another three of the same type, explains Ockie. One of the companys other prestigious contracts is with a big development group partner, currently responsible for constructing the biggest commercial development in Namibiaa huge multiplex shopping centre. Surrounding the
Stairway to heaven
The company mainly build in Windhoek and, at the time of writing, it is developing an exciting 24 unit
structure will be a number of residential flats, duplex houses and warehouses for commercial use, which OJ Construction will be responsible for. Its a whole little town on its own, built in a circle and therefore spread out from the shopping centre. The retail structure gradually gives way to office space and beyond that, large residential units. I think its a tremendously exciting new model for Windhoek and believe the local population will really benefit from it, says Ockie.
ments of each individual project. Typically, OJ Construction use contractors whose skills the company builds up, particularly on the management side. Refreshingly, it also advises staff about organise their finances. When it comes to working practices Ockie likes to let the experts within his company have the freedom to get on with exactly what theyre good at. I wouldnt be able to tell a guy how to plaster a wall; Im in the management side of business and its my job to employ highly skilled contractors who can get on with a job and do it brilliantly. Most of the time the company employ somewhere in the region of 500-600 people.
Fixtures and fittings

The company likes to maintain a versatile workforce, which is formed according to the require-
Its just as well that the business can rely on so many skilled craftsmen, in what has certainly been the most industrious year in OJ Constructions history. In addition to its activities in the private sector, the company is involved in some significant industrial development projects with the government. One of which is in partnership with a Namibian development corporation, whose main vision is to create work for the construction industry and people of Namibia. This is designed to ensure that smaller companies can open up their businesses in centres of industry. One of these centres is a garment factory,
which OJ Construction has recently completed. The self-contained modern premises encompass each and every process in the retail cycle, from the manufacture of clothing and accessories, to selling the items in the factory shop. As a company with such a futuristic philosophy its only natural that OJ Construction also maintains a photographic record of its achievements on Facebook. With an even bigger year in 2012 to look forward to the brothers are certainly building an impressive legacybrick by brick. TAB
JOllY GOOD sPOrT
sPOrTs GeAr
Ts TFG Sports
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136 SPORTS GEAR TFG Sports
In a world where sport covers such a multitude disciplines, demographics and even desires, there is one company that prides itself on catering for all tastes.
THese DAYs YOur reason for visiting a sports store could be anything from choosing an implausibly white pair of trainerswhich you intend to go night clubbing into sizing up the latest range of aero-dynamic football. Whether youre a dedicated follower of fashion or tenacious rugby star, who likes nothing more than to get caked in mud, it helps if your sports gear provider knows what theyre doing. With 30 years experience and 325 stores nationwide, TFG Sports really is the best in the business.
John McEnroe aside in Wimbledons battle of the brats, Alex Hurricane Higgins swaggered his way to the World Snooker Championship and professional rugby consisted of downing 18 pints in the clubhouse. It also happened to be the year that TFG Sports began its flagship brand Totalsports which now dominates the industry with 175 stores, in malls and high streets throughout South Africa. Ten years later Sportscene followed and now reaches millions more customers with 124 stores. Duesouthwhich specifically targets the outdoor marketwas launched in 2004 and has 31 locations so far.
Top of the league

In 1982 Jimmy Connors swept his nemesis
is all in
Adidas would like to thank The Foschini Group - Sports Division for their loyal support
Every year the brands have expanded and Marketing Director Fernando Ventura believes that knowing its customers and maintaining momentum has been the key. Were growing at a rapid pace, in fact, for the last two years weve launched 40-50 stores a year, he enthuses. We have three very well differentiated brands, which are well-positioned in the marketplace of each respective sector. South Africa is blessed with virtually uninterrupted sunshine and, as a sports-mad nation, the great outdoors has proved very
useful indeed, for TFGs Sports ethos. The vast open areas enable most of the population to enjoy easy access to football, running, fitness and rugby. The country itself, therefore, provides the perfect platform for its broad assortment of high quality sportswear, footwear and equipment to cater for the wide range of customer needs.
The three degrees

Totalsports is the companys premier sports merchandise destination offering a veritable cornucopia of top brands such as Nike, Adidas,
Asics and Puma. As well as offering an impressive array of performance attire, the stores are well stocked with the very latest in sport-inspired fashion wear, which incorporates a house brand called fusion. The store also supplies the most up to date replica jerseys of a whole host of soccer, rugby and cricket teams.
In contrast Sportscene is more of an urban sports-lifestyle brand, aimed at young people in the 16-24 age group. The shops hold extensive lines of branded clothing, footwear and accessories; all with the necessary dose of street cred, which is such an essential part of youth culture in South Africa. These cutting edge stores have a particularly strong focus on footwear, adds Ventura. We call ourselves the kings of sneaker-wear, so its very much a sneaker kind of mentality, and therefore positioned quite differently. The companys third brand caters for the slightly older consumercustomers in their
In this day and age the fanatic supporter will see their teams colours as a fashion statement, explains Ventura.
30s, 40s, 50s and beyond. Its hosts a mainly outdoor range, which includes modern hightech equipment and clothing for the more radical sportsperson.
Setting the pace

TFG still has big plans to expand its three popular brands, with stores opening at the same rate as the last few years. The company recognises that, as South Africa continues to encourage its widespread urban developments, there will be countless opportunities to bring the facilities to even more customers. Meanwhile, the companywhich already has a presence in Namibia and Botswana is keen to expand its interests in the rest of Africa with planned branches in Zambia, Nigeria and Mozambique.
This is for guys who go out for the day and enjoy exciting activities, hiking, mountain biking and extreme sports, says Ventura.
From a marketing point of view, we have three very different businesses, so weve been able to negotiate the downturn very well, he concludes.
With such an instantly recognisable set of brands TFG Sports, empire is certainly a far cry from the average sports store of thirty years ago.
The stores have become more sophisticated and were very, very focused on the delivery of modern sports outlets. We think our retail stores certainly do stand up to scrutiny anywhere in the world and were proud of the standard we set.
As the sporting landscape continues to broaden and more people wear tracksuits to the office, the three brands will keep moving with the times and bringing the finest regalia to neighbourhoods all over Africa. With such a huge following, its reassuring to know that the ball is firmly in TFG Sports court. TAB www.TfG.cO.ZA
146 MINING Evraz Highveld Steel & Vanadium Limited
mADe Of sTeel
evraz highveld Steel & Vanadium limited
mininG
146
evraz highveld Steel and Vanadium limited (evraz highveld) has been making its mark on the South african economy as the countrys leading steel and vanadium slag producer, and despite working in a difficult global economic environment the company has continued to embrace a range of sustainable and social initiatives.
wHen eVrAZ HiGHVelDfOrmerlY known as Highveld Steel and Vanadim Corporation Limitedcame on the market in 2007, Evraz snapped up the entity, marking an exciting new chapter in South African steel history. Evraz purchased 87 per cent of the firm that year and soon changed its name to Evraz Highveld Steel and Vanadium Limited as part of a brief rebranding exercise. Evraz Highveld director
and chief executive officer Michael Dennis Garcia says that the company changed its colours from the old blue to orange, yellow and red to symbolise the steel making process. As South Africas leading producer of flat products, structural steel and vanadium slag, the company has been keeping a close eye on global market trends to ensure its production remains in demand.
producer swinging back to profitability following tougher times in 2010. This reflected the moderate strengthening of the domestic steel market, both in terms of pricing and demand, and reflected better operations within the company, Garcia remarks.
In South africa there is a higher growth rate than in most Western countries, but its still not as robust as in the brIc countries.
We sit somewhere in the middle and while we expect prospective growth it wont be the same as you will see in India, China and Brazil.
Supporting social endeavours

As a committed part of the local economy, Evraz Highveld is giving back to the community through a series of forums and educational Demand has been stable-to-soft, and considering the concern that Europe and America could enter a full recession, growth in South Africa has not been that impressive, thereby leaving the general outlook for both vanadium and steel guarded, says Garcia. Despite the uncertainty surrounding the global markets, Evraz Highvelds most recent set of results, released in August, saw the steel programmes. One such endeavour is providing assistance and support to local schools and healthcare facilities through the Evraz Highveld eMalahleni Community Forum, which runs its social economic development projects. The company also operates a skills development programme through a highly-regarded internal training centre, which trains its own employees as well as external applicants.
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In regards to enterprise development, the team has identified a selection of suppliers from within its supply chain who it is looking to work with over the coming year as part of an enterprise development strategy, aimed at helping to set up businesses and long-term partnerships. The aim of this project is to promote enterprise development throughout our supply chain, which we will then further develop through a phased approach, explains Garcia. Evraz Highveld was also recently awarded a Level 5 Broad-Based Black Economic Empowerment (B-BBEE) accreditation.
to have a strong rating; it affects not just our tenders but also the business opportunities of our customers, he adds. Evraz Highveld is also focusing on its environmental position and has in place an environmental strategy that consists of three key components. We have a lot of initiatives in place to improve our environmental standing, confirms Garcia. These include full compliance with all environmental legislation, developing an environmental footprint that enables growth and meeting the conservation expectations of our stakeholders.
Improving infrastructure and efficiency
It is one of the key strategies that the South african government has in place to ensure that previously disadvantaged populations of South africans who were not fully able to participate in the economy during the apartheid years, are able to participate, explains Garcia.
Each business that wants to conduct business with government is required to have a BBBEE rating, he notes. The higher your rating the more favourable your position is in terms of being able to compete for government tenders. Its an advantage to us in the market place
Not content with supporting community initiatives and remaining ever mindful of its operating environment, Evraz Highveld is also examining different methods to greatly reduce its consumption of electrical energy. South Africa is in dire straight when it comes to electrical energy, remarks Garcia. The country has implemented a 25 per cent year-onyear electricity price increase and it is therefore becoming a big input cost for us and is putting our business at significant risk. Therefore, we are examining new reduction technologies in our iron-making process that will greatly reduce the electrical intensity of our steal making.
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Ferret coal Kendal is a coal producer and supplier of B-grade coal to the local domestic market(including leading Paper, Steel and Related producers) as well as to Power Utilities, with Operations in the Witbank area of South Africa, approximately 100 kilometers from Johannesburg. Products produced: Large Nuts (45x75mm) Small Nuts (28x45mm) Peas (10x28mm) Du (2x10mm) Ferret Coal Kendal is part of the GMR Group, which is a Bangalore headquartered global infrastructure major with interests in the Airports, Energy, Highways and Urban infrastructure.(visit website WWW.GMRGROUP.in for details)
As a result the company is opting to move forward with plans to install a cogeneration plant, and recently completed a pre-feasibility study on a facility that would allow it to create power to meet up to 50 per cent of its own electricity requirement. This would take us off of the electrical grid to a great extent and next year we will be undertaking an official feasibility study that will help us nail down the reduction technology we use, explains Garcia, adding that the team hopes this project will come to fruition within the next three to four years.
The Evraz Way

According to Garcia, the steel producer has been employing what it terms The Evraz Way in order to improve efficiency across the business. Its commitments in terms of social, environmental and energy efficient realms are clear, and this is the ethos that supports development across the board. We kicked off the programme earlier this year and we have several initiatives going on throughout the company where we have identified waste and redesigned our processes to greatly reduce wastage, he explains. It is really about applying lean
FABRICATORS OF WATER-COOLED AND OTHER CRITICAL FURNACE SPARES.
We are proud of 40 years service to Highveld and salute Evraz and the new skipper, Mike Garcia.
bqefrank@wol.co.za | Tel: 011 827 0325
manufacturing principles and reducing all forms of waste across all business processes in both manufacturing and administrative processes. Following the lead of the global economic downturn, the company is looking to use the coming months to consolidate its business interests. With demand lower than capacity across South Africas steelmaking industries, Evraz Highveld has opted to take a measured, strategic approach in the coming months and years. Its conservative stance is refreshing, and in placing greater focus on infrastructural improvements, environmental commitments and
social endeavours, it is also an exemplary enterprise when it comes to responsible business for the steelmaking sector. TAB www.HiGHVelDsTeel.cO.ZA
156
DesmOn
dezzi-nated
mininG
nD equiPmenT
driver
158 MINING desmond equipment
From its humble beginnings desmond equipment has developed into an intercontinental success story and, with its dezzi brand of transport equipment, is now aiding the development of businesses across africa, as it provides a healthy mixture of friendly service and quality machinery.
in suPPlYinG HeAVY industry transport machinery to the mining, timber, sugar, harbour and construction sectors, Desmond Equipment has become a key player for many businesses operating across Africa. From tractors and haulers to loaders and dump trucks, the Dezzi range of equipment has been busy keeping businesses moving since 1995. Des Gutzeit, the companys managing director, set up the family-owned transport company after completing a two-year apprenticeship with a Ford tractor dealership more than 30 years ago. Gutzeit borrowed the sum of R300 to buy his first
truck and after 30 years of trading is head of a company that is currently blossoming. When I was 20 years old I heard that the local railway authority was looking for trucks to hire, so I went to the station master and he asked me to bring a lot of trucks, says Gutzeit. I only had one truck, but I told him I had three. I said to the station master that two of the trucks were busy and he told me to bring them whenever I could. So I started off with the one truck and I worked there for about four months saving enough money to buy another truck. I told him the second truck was on its way, and he asked me to bring that one as well, he
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Dezmond equipment are using Dunair in Earth moving applications. Dunair manaufacture a range of vehicle aircon kits for almost all makes and models that do not come factory tted with aircon A dealer network of more than 200 dealers throughout South Africa. A range of replacement aircon parts for all popular makes and models sold in South Africa Dunair manufacture a range of Bus roof top aircon systems with a range of large aircon compressors to suite. Seeking partnerships in Africa. Dunair is a division of Smiths Manufacturing part of the Matair group Website: www.dunair.co.za; Contact: info@dunair.co.za; Tel: 0800 203 027/8
continues. From there I saved enough money to buy a third truck and that was actually from where I started the business from. Within a year of buying his third truck Gutzeit had invested in a front-end loader and began transporting sand and gravel, while also carting bricks for his father.
manufacturing side of the business, reinvesting the money into buying new transport machines. By 1994, the company had decided to build its own machines and in 1995 built its first frontend loader. Today we build 17 different models, including seven different-sized dump trucks, five different-sized front-end loaders, tractors for the industrial market, cane loading equipment, timber trucks, and a range of dump trucks for the mining sector, says Gutzeit. Through the success of its Dezzi brand of machinery, Desmond Equipment has built a strong and loyal customer base across the continent.
Desmond in demand
Having set up a fully-fledged transport business, Gutzeit continued to guide the company along similar lines for its first 10 years, before entering the ready-mix and brick manufacturing industry. In 1981, Gutzeit sold the ready-mix and brick
We have a lot of machines in Mozambique, Zambia and Zimbabwe, including a lot of machines in the sugar cane industry Gutzeit notes. We even design our machines to suit the site conditions and needs of our customers. Therell always be a place in the market for good machines at the right price, he says. But Africa is not an easy market to work in especially if youre based in the middle of nowhere, 2,000 to 3,000 kilometres away from service departments. Today, Desmond Equipment has a factory on the southern coast of South Africa, a one-hour drive south of Durban and manufactures be-
tween 100 and 200 machines per annum. We have a team of more than 100 in the factory in South Africa and we have a dealer network that encompasses Cape Town, Port Elizabeth and Durban, as well as our own outlet and marketing offices in Johannesburg, Gutzeit notes.
Taking on the competition

Working across a range of sectors, from construction and mining, to harbours, sugar and timber, can lead to the demand for the companys machines changing on a monthly basis. Some months well sell a lot of machines to the mining industry and then in other months
well sell a lot of machines into the sugar cane industry, says Gutzeit. With an influx of manufacturers from East Asia entering the African marketplace, the industry has changed enormously in the past few years, but Desmond Equipment has managed to remain as relevant as ever by supplying equipment designed to work in tough conditions, that is easy to repair and is operationally low cost. Last year wasnt the best year for South Africa financially, and I think the rest of the world as well, but we managed to remain very busy as the sugar industry was booming and always has been, remarks Gutzeit.
The companys philosophy is taken from a saying Gutzeits father used Give a guy a good deal and he always comes back, but burn him once and you never see him again. Thats a philosophy we keep to and often our customers become our friends, remarks Gutzeit. With his own aircraft and landing strip Gutzeit is even able to use his pair of wings to fly and deliver spare parts to customers across Africa. We fetch customers from wherever they want to be picked up and we fly them to the factory and give them a tour of our facilities and serve them lunch, before flying them back in the evening, he says. Its nice to get the customers
here to show them the factory and do business. By always being on hand to help its customers, and with an honest ethos grounded in the companys humble beginnings, Desmond Equipment and its Dezzi brand is busy writing the next chapter of its fascinating story by developing its reach across the African continent. TAB
Sa lime &
THe lime Of T 16
mininG
& Gypsum
THe cenTurY 66
168 MINING Sa lime & Gypsum
From its base in South africa, the countrys leading agri lime company is looking to expand its interests in markets across the continent. TABJ looks at the success of Sa lime & Gypsum and its subsidiary africa lime Products to find out how it plans to build a continental empire.
wiTH VAriOus lime and gypsum production sites across South Africa, SA Lime & Gypsum is leading the industry across Africas largest economy. The company started trading in 2003 and, with its focus on agricultural lime and gypsum, has grown into the biggest agri lime company in Africa. We are the only nationally-represented lime company in SA and also the biggest in Africa, declares director Hendrik Hel. The company
originally started in Cape Town and in 2004 began expanding across the rest of South Africa. We now have an agent network totalling 150 across the country and deliver products from logistically well-situated sources in every province, he adds. SA Lime & Gypsum, the brainchild of managing director Carl Taljaard, was founded with the help of co-owner Hendrik Hel, and quickly began
and quicklime, which is used in a wide variety of environmental and industrial applications. It also trades in waste treatment lime for wastewater treatment plants that is used as the chemical for correcting the pH balance of acidic waters, precipitating heavy metals, phosphates and its flocculating action. Africa Lime Products, a subsidiary of SA Lime & Gypsum Group, was been established in 2008 and began trading in 2009 to act as the companys vehicle to direct its expansion plans across the African continent. The subsidiary, which started trading in 2009, specialises in the production and marketing of the full range of value-added calcium and magnesium products. The companys core business revolves around the chemically-driven lime cycle, and its key product, arsenal, is sourced, processed and distributed from strategic locations in close vicinto climb to the top of the ladder to ultimately become Africas biggest agricultural lime company. From industrial gypsum to neutralime, SA Lime & Gypsum supplies a variety of limebased products. The companys current product portfolio and applications includes roadlime, an unparalleled aid in the modification and stabilisation of soil beneath road and similar construction projects, ity to its key markets. The formation of this company was a natural progression for our group, following the rich history of SA Lime & Gypsum, a market leader within the agri lime industry, says Hel.
Competitive edge
The key competitive advantage SA Lime and Gypsum has is that its business strategy lies in the
Various exciting opportunities currently exist in the lime industry, both in South Africa and on the rest of the continent. With stable economic and political conditions and its rich deposits of copper and cobalt ore, the company has selected Zambia as the platform for its future growth strategy into Africa and synergy between the agricultural and industrial lime markets, notes Hel. Most waste materials from the companys industrial plants and other industrial sources, to which have exclusive access, are easily marketed and sold into the agricultural market, he remarks. As far as forward integration is concerned, the company has been able to finance all capital requirements to date with internal funds, he adds. These include a lime hydration plant along South Africas western coast and a variety of mobile minerals processing and earthmoving modules. began trading in Zambia earlier this year. Having registered a wholly-owned subsidiary in Zambia and obtained the investment license required to start operations within the country, the company has appointed a team to look after its interests in Zambia and signed contracts with suppliers of limestone to ensure raw material security. In line with the companys proven business model, the location of these sources has been strategically selected close key markets to provide a competitive advantage through the reduction or elimination high-transport costs, remarks Hel.
In January 2012 we will see the incorporation of Africa Lime Products (Mozambique) and we are currently busy finalising the takeover of a mine in southern Mozambique, as well as sorting out plans to establish new mines in other locations in Mozambique, he adds.
Lime is fine
Hel says that the lime industry hasnt been overly affected by the economic turndown that has caused havoc to so many other industries in the past few years. The agri business was not affected at all and we have maintained 35 per cent growth since the start of the recession, he notes. The industrial business also expanded dramatically during these years and we are happy to have a growing market share during tough times. Our planning in the next five years is aggressively towards Africa and we are already investi-
gating opportunities in various new locations, he remarks. Growth in sales and profit has been exceptional and the firm supply contracts we have in place put the company in a very healthy financial position. From relatively healthy positions, SA Gypsum & Lime and Africa Lime Products are both looking to develop an expansion plan that will put the group on a platform to become a global player within the resource sector. TAB www.sAkG.cO.ZA
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AfricAn Business

december 2011 Volume 2 Issue 12

Business South Africas unique economy

interview Concrete Manufacturers Association

Company foCus TFG Sports

Proudly serving Africa

An extraordinary firm, with extraordinary people, on an extraordinary continent.

uK office 2 Sheen road richmond Surrey uK TW9 1ae

sPOrTs rePOrT AViATiOn TrAnsPOrTATiOn

106 112 118 124 134

PAVinG PrOPerTY sPOrTs GeAr mininG

eVrAZ HiGHVelD sTeel & VAnADium lTD. is a truly responsible

146 156 166

BUSINESS concrete manufacturers association

DECEMBER 2011 The African Business Journal

BUSINESS concrete manufacturers association

What are the benefits of being a CMA member?

Do you support the cement sector through educational initiatives?

DECEMBER 2011 The African Business Journal

BUSINESS concrete manufacturers association

DECEMBER 2011 The African Business Journal

BUSINESS concrete manufacturers association

DECEMBER 2011 The African Business Journal

ABOuT HAmisH lAinG

muse news coming out o

NEWS IN REVIEW SECTION Title

SEPTEMBER 2011 The African Business Journal OCTOBER

muse news coming out o

NEWS IN REVIEW SECTION Title

SEPTEMBER 2011 The African Business Journal OCTOBER

muse news coming out o

NEWS IN REVIEW SECTION Title

SEPTEMBER 2011 The African Business Journal OCTOBER

muse news coming out o

NEWS IN REVIEW SECTION Title

SEPTEMBER 2011 The African Business Journal OCTOBER

COVER FEATURE Gaddafi is deadhow it came about really doesnt matter

John Pinchings Stream of Consciousness:

Gaddafi is dead--how it came

DECEMBER 2011 The African Business Journal

e about really doesnt matter

He is the pivotal figure in a countdown to World War III

COVER FEATURE Gaddafi is deadhow it came about really doesnt matter

DECEMBER 2011 The African Business Journal

COVER FEATURE Gaddafi is deadhow it came about really doesnt matter

COVER FEATURE Gaddafi is deadhow it came about really doesnt matter

What now for Libya

The revolution that sparked a revolution

DECEMBER 2011 The African Business Journal

EVIL BEYOND BELIEF

THE DEVIL INCARNATE

COVER FEATURE Gaddafi is deadhow it came about really doesnt matter

DECEMBER 2011 The African Business Journal

The Blair witch project

Sculpting a brighter future

DECEMBER 2011 The African Business Journal

China in their hands

DECEMBER 2011 The African Business Journal

DECEMBER 2011 The African Business Journal

While the rest of the South africas econom

BUSINESS Strange currencies

DECEMBER 2011 The African Business Journal

BUSINESS Strange currencies

DECEMBER 2011 The African Business Journal