the african business journal sept 2011 - john pinching
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The African Business Journal (TABJ) is a digital publication with an intoxicating cocktail of news articles, lifestyle features and company profilesTRANSCRIPT
CrunCh time! can the
springboks make it three?
The
AfricAn Business Journal
Business and culture Teachers in Africa
Politics Water Wars
comPany FocusLubritene
SePTeMBer 2011 Volume 2 Issue 9 www.tabj.co.za
IN THIS ISSUE ►
2 SECTION � Title
maerskline.com Proudly serving AfricaHow do we serve Africa? By delivering on time.
If you look at what Maersk Line has achieved in schedule reliability over the past years, you could almost say we’ve invented modern on-time delivery – in West Africa and around the world.
Why does on-time delivery matter so much? Because it enables you to plan with greater certainty and to serve your customers more reliably. Now that is something everyone can benefit from.
At Maersk Line, nothing would please us more than to help take your business to the next level of consistent on-time delivery.
West Africa services – New & improved!• 22 custom-built ships, the largest in West Africa• The market’s best network• Unmatched schedule reliability• Personalised service and strong local presence
R1124_Africa_African_Business_Journal_letter_AD3.indd 1 12-07-2011 21:14:20
eDiTOr’s note
Hi fOlks,
I hope you are enjoying a fulfilling summer
so far. Assuming you are, here’s another ray
of sunshine—a new edition of The African
Business Journal.
The front cover subtly suggests that
something big with a strange-shaped ball
is afoot. Yes, Rugby Union World Cup fever
is spreading. Crunching tackles, steaming
scrums, phenomenal footwork and try line
high jinks are the order of the day—why, you
can almost smell the antiseptic spray!
To celebrate the occasion I’m going to
look wistfully back at tournaments gone by,
while also forensically dissecting the most
threatening teams at this year’s jamboree.
Also, as the paint dries on goalposts in
preparation for the new season, we take a
look at African footballers who hope to add
some sparkle to the frantic cauldron of the
English Premier League.
This month’s edition is further proof that
the African economy is enjoying a renaissance,
with many industries experiencing a gradual
change of fortune, after some difficult
months. The companies we’re profiling cover
practically every walk of life from properties
and gardening to electronics and carbonated
drinks. We also take a look at mining
(naturally), cotton, fruit, motor vehicles and
many other industries to boot.
In addition, we have the next in our
series of Poprica (checking out more African
influenced music) and a study of how water
shortages may cause the next major war.
Before I dash, I must also alert you to
an exclusive interview with a chap who has
been teaching business studies in Egypt. Not
only has he been changing young lives for
the better, but there has also been the small
matter of a revolution to deal with.
Over and out,
John
maerskline.com Proudly serving AfricaHow do we serve Africa? By delivering on time.
If you look at what Maersk Line has achieved in schedule reliability over the past years, you could almost say we’ve invented modern on-time delivery – in West Africa and around the world.
Why does on-time delivery matter so much? Because it enables you to plan with greater certainty and to serve your customers more reliably. Now that is something everyone can benefit from.
At Maersk Line, nothing would please us more than to help take your business to the next level of consistent on-time delivery.
West Africa services – New & improved!• 22 custom-built ships, the largest in West Africa• The market’s best network• Unmatched schedule reliability• Personalised service and strong local presence
R1124_Africa_African_Business_Journal_letter_AD3.indd 1 12-07-2011 21:14:20
Sara Kopamees | Editor in Chief | [email protected]
John Pinching | Editor | [email protected]
Ben Watts | Staff Writer | [email protected]
Cory Wilkins | Editorial Assistant |[email protected]
Vladimir Lukic | Creative Director | [email protected]
Chris Moore | Sr. Advertising Designer | [email protected]
Margaret Oldham | Sr. Graphic Designer | [email protected]
Wincy Law | Sr. Graphic Designer | [email protected]
Tanya George | Advertising Designer | [email protected]
Marc Mauricio | IT/Production Support | [email protected]
Natalie Edney | Head of Sales | [email protected]
Khayyam Darr | Research Director | [email protected]
Andrew Miskin | Research Director | [email protected]
Brett Haigh | Research Director | [email protected]
Justin Lejuene | Research Director | [email protected]
Hugh Braithwaite | Research Director | [email protected]
Dee Nazer | Research Director | [email protected]
Michael Alexander-Jones | President | [email protected]
Linda Neal | Chief Executive Officer | [email protected]
Naveed Yusuf | Chief Information Officer | [email protected]
Gemma Parkins | Executive Assistant | [email protected]
South africa office
23 Wellington road
Parktown, 2193
Johannesburg
uK office
2 Sheen road
richmond
Surrey uK TW9 1ae
GEoRGE MEDIA InC.
TABJ Team
Table of cOnTenTs SePTeMBer 2011 | VoluMe 2 | ISSue 9
046cOVer feATure
news
speciAl repOrT
pOliTics
fOOD & Drink
Business & culTure
rugBy wOrlD cup 2011 Cruch time! Can the springboks make it three? 010
Muse business news coming out of africa 020
AfricAn fOOTBAllers africa’s premier exports 028
pOpricA! Part two 036
wATer wArs Could water worries spill into war? 040
TeAcHers in AfricA out of the comfort zone 046
sODA king Sparkling performance 052
cHilTern fArMs Core, what a lovely pear 060
uD Trucks Motor head 066
TrAnspec The industrial body builders 086
iMperiAl Truck renTAls The truck stops here 094
TrAnspOrTATiOn
010
094
Table of cOnTenTs SePTeMBer 2011 | VoluMe 2 | ISSue 9
MAnAgeMenT & OperATiOns
MAnufAcTuring
Mining
cOnsTrucTiOn
166sABle HOMes Willing and Sable 108
penBrO kelnick electric dreams 116
elB equipMenT Moving heaven and earth 122
erBAcOn sMAll plAnT Tool’s gold 132
MOOlMAn grOup Spearheading South africa’s property investments 138
MOrgADO Planting the seeds of success 144
VegTecH People in glass houses 152
Strategy, knowledge, networks and success. how glOBAl pAcific &pArTners continues to outperform all other advisory bodies in industry 158
Msp DeVelOpMenT Building a community 166
luBriTene Greased lightening 174
cOTTOn king Keep it reel 184
BellzOne Iron men 192
CrunCh time!can the springboks make it three?
Since its conception in 1987, the rugby union World Cup has always created history, drama, heroes, villains, nail-biting scenarios and moments of pure brilliance. This year’s simmering cauldron of rivalries will be brought to the boil in new Zealand—exactly where it all started more than two decades before. let the battle commence.
CrunCh time!can the springboks make it three?
12 COVER STORY � Crunch time! Can the Springboks make it three?
fAVOuriTes TO lifT THe TrOpHy On 23 OcTOBer
11/8 new Zealand
4/1 Australia
6/1 South Africa
10/1 England
16/1 France
20/1 Ireland
50/1 Wales
90/1 Argentina
175/1 Scotland
400/1 Samoa
750/1 Figi, Tonga
1000/1 Everyone else
2000/1 namibia
13SEPTEMBER 2011 � The African Business Journal
When the Rugby Union World Cup story began
24 years ago the organisers had high hopes for
a sport that had long-deserved a platform be-
fitting of its massive popularity—a stage upon
which its finest exponents could display their
myriad of skills in front of a captivated interna-
tional audience.
Even in those halcyon days of the late
1980’s, not even the most optimistic fans could
have predicted the blood and thunder produced
by this increasingly spectacular tournament.
History in the makingFor connoisseurs of the previous six campaigns
there are particular memories that spring in-
stantly to mind.
The first champions, New Zealand, jointly
hosted the competition and proceeded to make
light work of any team that stood in their way.
This included a mercurial French team who were
convincingly trounced 29-9 in the inaugural final.
That day the nonchalant Kiwi team included leg-
ends such as Sean Fitzpatrick, Grant Fox, John
Kirwan—who scored a decisive try in the final—
and Michael Jones.
Four years later Australia—featuring mouthy
try machine David Campese—laughed in the face
of tradition by toppling rugby’s original architects
and joint hosts, England. Although the game at
Twickenham—which the Aussies won 12-6—was
indicative of a low scoring and defensive tour-
nament, it heralded a new chapter of southern
hemispheric domination and raised serious ques-
tions about Will Carling’s famously arduous team
briefings (during which Jeremy Guscott would ap-
parently fall asleep). Many saw this as an official
changing of the guard and, for England, it began
a 12-year hiatus from the World Cup final.
Pump up the volumeIn 1995, Jonah Lomu burst on to the scene leav-
ing a trail of forwards flailing hopelessly in his
wake. Huge, powerful and lightning-fast, Lomu
stamped his indelible footprint on the tourna-
ment, scoring several breath-taking tries. It was
South Africa in their own back yard, however,
who defied the experts by smashing, skipping
and swooning their way to victory, adding a coat
of sensational gloss to Mandela’s brave new
post-apartheid nation. It would also drag the
sport kicking and screaming from ale-saturated,
nicotine-stained amateur clubhouses into the
weight-pumping, speeding-locomotive gymnasium
of professionalism.
14 COVER STORY � Crunch time! Can the Springboks make it three?
A year before the millennium it was Austra-
lia’s turn to bookend the decade with another
cup, leaving the legacy that their form over the
preceding ten years warranted. The solid and
impenetrable 1999 outfit coasted to the final
before sweeping aside perennial runners-up
France. Most of the points in a 35-12 victory
came from Matt Burke’s trusty boot, making
Australia the first country to trouble the trophy
engravers twice. Upsettingly, it would also be
the last time that traditional cotton shirts would
be worn at the finals. Shortly after, the big
sports brands introduced eye-wateringly tight
spandex attire; flattering to some and positively
insulting to others.
After a dozen years in World Cup final wil-
derness the colonialists unveiled, at will, a
majestic weapon, with a left foot of pure gold.
Johnny Wilkinson’s schedule of practice tee-
tered on the brink of OCD, but paid dividends
right at the death. During the final, in Sydney,
England took the game to the Aussies, trading
15SEPTEMBER 2011 � The African Business Journal
crunching tackles, getting under their skin and
matching them point for point. Led by the lion-
hearted Martin Johnson, they poured forward
in the final seconds, and the ball eventually
broke to Wilkinson who dispatched his devas-
tatingly precise drop-kick with ice-cold, con-
summate ease.
At the climax of the 2007 shin-dig, a battered
and heavily-criticised England somehow made
it into the final again. This time a South African
team with tenacity, brutality and creativity to burn
crushed the holders to lift the Webb Ellis trophy
for a record-equalling second time. The team’s
glorious progress through the championship was
highlighted by the gazelle-like speed of top try
scorer Bryan Habana and never-say-die approach
of the talismanic Schalk Burger.
It had been yet another classic fortnight of
theatre, confirming the Rugby World Cup as a
premier fixture on the sporting calendar and
leaving a global audience counting down the
seconds to 2011.
It dragged the sport kicking and screaming out of ale-saturated, nicotine-stained amateur clubhouses into the weight-pumping, speeding-locomotive gymnasium of professionalism.
16 COVER STORY � Crunch time! Can the Springboks make it three?16 COVER STORY � Crunch time! Can the Springboks make it three?
Who’s coming to the party?With the tournament a matter of weeks away TABJ dusts off its
magnifying glass and examines the match winners, secret weap-
ons, enigmas and potential heroes from the top nations.
sOuTH AfricAexplOsiVes experT: BryAn HABAnA
He already has a winners medal proudly pinned to his lapel and
Habana will be looking to add another this summer. Although his form
has been inconsistent since the memorable 2007 victory, the winger’s
abundant box of tricks has often reopened when club and country have
needed it most. Provided he is given adequate service, the electrifying
turn of pace that has earned him the nickname ‘dash’, could light up
the tournament. Under fire, coach Peter De Villiers will be praying that
his star man’s afterburners are activated in time for the early stages.
ArTillery: MOrné sTeyn, scHAlk Burger, cHiliBOy rAlepelle
17SEPTEMBER 2011 � The African Business Journal 17SEPTEMBER 2011 � The African Business Journal
englAnDexplOsiVes experT: cHris AsHTOn
Ashton caught the eye of England selectors after converting from
rugby league in 2007. He put in some unforgettable performances dur-
ing the early part of 2011 and perfected the knack of being in the right
place at the right time, to finish England’s intricate passing sequences.
He usually completes a try by ‘swan diving’ over the line, much to the
chagrin of one M. O. Johnson, whose attempts to censor Ashton’s
gymnastics have proved fruitless. It is the winger’s industry and enthu-
siasm, however, which are most likely to succeed during the World Cup.
ArTillery: JOnny wilkinsOn, lewis MOODy, MArc cueTO
irelAnDexplOsiVes experT: BriAn O’DriscOll
Outside centre and veteran of well over 100 international caps,
O’Driscoll is one of several members of the Irish contingent who will
count this tournament as their last great opportunity for goldware.
O’Driscoll, who has proved pivotal during several successful Grand
Slam campaigns, scored two tries during the last World Cup but didn’t
quite live up to his nation’s high expectations, on the loftiest rugby
stage. He’ll be looking to put that right in the early exchanges this time,
delivering his lethal combination of flair and fearlessness.
ArTillery: pAul O’cOnnell, rOnAn O’gArA, gOrDOn D’Arcy
18 COVER STORY � Crunch time! Can the Springboks make it three?18 COVER STORY � Crunch time! Can the Springboks make it three?
AusTrAliAexplOsiVes experT: quADe cOOper
A young man with authoritative rugby shoulders, Cooper has dis-
mantled teams with his running breaks and dynamic passing. After the
recent Wallabies tour his maturity on the pitch was unfortunately coun-
teracted by an inexplicable Gold Coast stealing spree which earned him
a burglary conviction! The inside centre will be hoping to commit grand
theft of the sporting variety when his rejuvenated team start their cam-
paign in a potentially tricky encounter against Italy. With Cooper in the
ranks a third World Cup for the Aussies is a distinct possibility.
ArTillery: JAMes O`cOnnOr, sTepHen MOOre, ADAM AsHley-cOOper
OTHer TeAMs cOMpeTing in THe 2011 rugBy uniOn wOrlD cupArgentina, Fiji, France, Italy,
Scotland, Tonga, Wales, Canada,
Georgia, Japan, namibia, Romania,
Russia, Samoa, United States
19SEPTEMBER 2011 � The African Business Journal 19SEPTEMBER 2011 � The African Business Journal
new zeAlAnDexplOsiVes experT: DAn cArTer
New Zealand are in pole position to snatch their first title since the
inaugural competition and one man sums up their ethos entirely; D. W.
Carter. Quiet and reserved off the pitch, but fluent, athletic and devas-
tating on it, Carter is considered one of the greatest fly-halves to have
graced the game. Arguably the complete player, he has already dis-
patched well over 1,000 points, incorporating all the different methods
of scoring. Carter will see the World Cup as the ultimate test of his ex-
traordinary abilities. Don’t be surprised to if he heads the points table.
ArTillery: ricHie MccAw, cOlin slADe, MA’A nOnu
frAnceexplOsiVes experT: VincenT clerc
In Vincent Clerc Les Bleus have a waspish little dynamo who, on his
day, can dazzle, dink, drive through and deceive defences. His diminutive
frame, positional sense and fast reactions have often combined to cre-
ate try scoring opportunities for both him and his team mates. He will be
hoping to revive the fortunes of an inconsistent French side who flattered
to deceive in the 2011 Grand Slam, but whose finesse and ‘je ne sais
quoi’ is often typified by Clerc. Although a French triumph seems unlikely,
he has defiantly stated that France are capable of securing a first title.
ArTillery: MAxiMe MéDArD, MOrgAn pArrA, DiMiTri yAcHVili TAB
20 NEWS IN REVIEW
Muse business news coming out of africa
new Business, As sTAnDArD
Africa’s largest bank, Standard, has revealed its
market-beating performance in the first half of
this year, while also laying down plans to launch
a bigger onslaught on the domestic and African
market in the near future.
The banking group reported earnings of
R6,64bn—an increase of 11 per cent—and head-
line earnings per share of 418,4c, a rise of 10
per cent. The market has reacted positively to the
results, with its share price closing four per cent,
up at R94,50.
The CEO of Standard Bank SA, Sim Tshaba-
lala, said Standard’s desire to lend to individual
and corporate customers had never been greater.
He added that after presenting Standard’s results
there had been an all-out effort to use its balance
sheet clout to create new business across all mar-
ket segments.
“We are open for business but we are not
chasing market growth,” says Tshabalala. “Mar-
ket share growth is what we do very efficiently
and we will continue to act with due diligence in
the way we lend and price our risks.”
Standard now has the largest market share
in home loans, credit cards and share of depos-
its in South Africa and also has 9.3 million retail
customers.
Group earnings in the period to June got a
boost from a 30 per cent increase in earnings
21SEPTEMBER 2011 � The African Business Journal
business news coming out of africa
within the personal and business banking unit of
R2,5bn. Meanwhile, retail banking operations in
SA showed a growth of 17 per cent in earnings to
R5,53bn.
pc is DeAD sAys iBM
Apple’s Steve Jobs has regularly claimed that we
are living in a ‘post PC universe’. Now an IBM ex-
ecutive has added fuel to the fire. Chief technol-
ogy officer for the Middle East and Africa region,
Mark Dean, says the company did the right thing
by getting out of the PC business.
August marks the 30th anniversary of the
ground breaking IBM 5150 PC, which was widely
considered to represent the dawn of the PC era.
IBM, for years, lead the way in ensuring a PC in
every home, a campaign which, in turn, drove an
industry that now sells millions of units each year.
Although Dean was on the team that helped
shape IBM’s PC business, he lauds the company
for selling its computer business to Lenovo in 2005.
“While many in the tech industry questioned
IBM’s decision to exit the business at the time, it’s
now clear that our company was in the vanguard of
the post-PC era,” Dean says.
“The PC is no longer at the leading-edge of
computing.”
In contrast, Microsoft Corporate Communica-
tions Chief, Frank Shaw, says he likes to think of the
current state of computing as the ‘PC-plus’ era.
“We’ll continue to lead the industry forward in
bringing technology to the next billion people on
our planet,” Shaw says. “We’ll do that as we always
have, by working with our partners to deliver amaz-
ing experiences to individuals and businesses.”
inDiAn OppOrTuniTies BeckOn fOr sOuTH AfricA
South African companies are being urged by Busi-
ness Unity South Africa (BUSA) vice president
Brenda Madumise to become more active in the In-
dian market. She pointed out that some 102 Indian
companies were now active in the South African
market, but that South Africa based businesses
needed to increase their presence in India.
“We need to do much more business in
India,” she said. “BUSA and CII [Confederation of
Indian Industry] have been working closely to en-
hance the business relationship between our two
22 NEWS IN REVIEW
Muse business news coming out of africa
countries. Successive South African governments
since 1994 have prioritised relations with India
and now we need to see this come to fruition.”
Since 1991, India’s gross domestic product
has gone up by a factor of four and the country’s
per capita income has more than doubled. For-
eign direct investment in the country since 2000
has reached $200 billion.
“India’s integration with the global economy
has surpassed all expectations,” said CII Director-
General Chandrajit Banerjee. “The country has a
young population and an expanding middle class.
There is an opportunity for all South African busi-
nesses to participate, and participate profitably,
in India’s development story.”
sisTers sHOulD DO iT fOr THeMselVes
President Jacob Zuma has said that statistics
showed that more progress needs to be made to
advance women in the business sector. Only 4.4
per cent of the chief executive and managing direc-
tor positions were held by women. In addition, they
held 15.8 per cent of all directorships according to
the 2011 Women in Corporate Leadership Census
of the Business Women’s Association.
“This year has provided economic transfor-
mation and job creation. The government wants
to see a visible change for women from all walks
of life,” he said.
“We are however concerned that the target of
10 per cent for female participation in mining was
not met, as the recent Mining Charter review has in-
dicated. This means that more work must be done
to open this sector for women,” he added.
The government has been well-aware that
women entrepreneurs remain on the periphery
of the national economy and has encouraged
women to enter industries that were traditionally
dominated by men, including mining.
pepkOr increAses eMpire
South Africa’s biggest clothing retailer, Pepkor
Ltd., will open stores in Nigeria as Chairman
Christo Wiese expands his business empire
across Africa.
“We will invest about R100 million in the first
phase of operations,” he said. “Africa is awaken-
ing—it’s a huge market of almost a billion people,
23SEPTEMBER 2011 � The African Business Journal
business news coming out of africa
with huge resources and a young population.
People spend when they’re young and it’s a grow-
ing market; there is enough for everybody.”
Wiese, ranked as the fourth richest South Afri-
can on Forbes Magazine’s list of billionaires, with a
net worth estimated at $1.6 billion, controls Shop-
rite Holdings Ltd., Africa’s largest grocer, and holds
more than a third of Brait SA (BAT)—the biggest
South African private equity company. The 69-year-
old is relying on economies in Africa expanding
faster than the U.S. and Europe.
Pepkor will follow the example of Shoprite,
which has 76 supermarkets in 15 African countries
outside of South Africa. Pepkor will then expand
gradually in different African regions, adding to its
2,800 stores in South Africa, which include the Pep,
Ackermans and the Best and Less brands.
Pepkor’s expansion follows a reorganisa-
tion of the retailer’s shareholding in June with
the intention being to let its shareholders take a
24 NEWS IN REVIEW
Muse business news coming out of africa
long-term view, while not having the pressure of
having to close their investment in the company.
AgenTs giVen ‘unDerwATer’ pAyMenTs
Ferrostaal, the main company in the consortium
that sold South Africa submarines as part of the
controversial 1999 arms deal, paid more than
$40 million to agents in South Africa.
It’s one of the key findings to emerge from a
controvercial internal-compliance investigation
compiled for Ferrostaal’s new management by in-
ternational law firm Debevoise & Plimpton (D&P).
Other key discoveries within the South Africa
section of the report, highlight concerns about
Ferrostaal’s business relationship with Chippy
Shaik, the former chief of acquisition who played
a central role in the tender process. It shows the
German company’s disdain for the multibillion-
rand offset obligations that were supposed to
flow from the weapons purchases and reveal the
two main agents were Greek tycoon Tony Geor-
giadis—known for his involvement in the Frigate
deal and for his association with former Presi-
dent Thabo Mbeki—and Tony Ellingford, a former
defence-industry executive who was close to late
defence minister Joe Modise.
A number of former Ferrostaal executives
are facing criminal and civil actions in Germany
relating to the company’s widespread past use of
payments to obtain business.
The overall findings by D&P concerning Fer-
rostaal’s worldwide operations provide important
25SEPTEMBER 2011 � The African Business Journal
business news coming out of africa
background to the €36-million in payments for
the South African deal, though the law firm char-
acterises these as having “significant red flags”
but lacking evidence of criminal conduct.
sweeT pOlicies neeDeD TO sTrengTHen kenyAn
sugAr inDusTry
Three years ago, Kenya requested partners in
the Common Market for the Eastern and South-
ern Africa trade bloc. It was a move intended to
extend quotas on the amount of sugar imports
from the region.
Trade and Industry minister Dr Mukhisa
Kituyi went to great lengths to convince Comesa
members and many stakeholders that by 2011
there would be a streamlined sugar industry
complete with imports from the region, but it
hasn’t materialised.
Kenya now wants yet another extension, be-
yond the coming year’s deadline. In the previous
agreement from other Comesa nations, Kenya
was to tax all but 200,000 tonnes, while open-
ing the sugar market to imports at the rate of
40,000 tonnes per year.
The country’s development of a vibrant sugar
industry has been hampered by the high cost
of production, making its sugar uncompetitive.
It has to rely on the Comesa countries, but has
been slow to open up the market, fearing that
the sugar industry, which supports the western
Kenya economy, could collapse under the weight
of cheap sugar imports.
26 NEWS IN REVIEW
Muse business news coming out of africa
27SEPTEMBER 2011 � The African Business Journal
business news coming out of africa
While the sector has in recent years witnessed
some significant reforms, such as proper manage-
ment of sugar factories, this has yet to have a major
impact on the competitive nature of sugar. As a na-
tion, Kenya is desperate to safeguard the industry,
but the deadline cannot be extended indefinitely.
AnglO AccuseD Of sOuTH AfricAn BiAs
Cynthia Carroll, Anglo American CEO, has put up
a spirited defence of South Africa after queries
from mining analysts. Her passionate response
followed Anglo’s formidable 45 per cent increase
in core operating profit in the six months to June.
Bank of America Merrill Lynch analyst Ja-
son Fairclough had queried Anglo’s continuing
heavy dependence on a South Africa that he
claims is wracked by a protracted mine nation-
alisation debate.
“As impressive as all the progress might be
towards the company growing outside South Africa,
there is no getting away from the fact that half of
Anglo remains in South Africa,” insists Fairclough.
Carroll’s responded: “Anglo is receiving con-
sistently good readings from the South African
government and it continues to believe in South
Africa as a place to trade. We are rightly proud of
our status domestically but we also have several
exciting ventures overseas and are always look-
ing for new international projects.”
Contrary to popular belief, half of the com-
pany’s $15 billion worth of near-term approved
projects will actually be in South America, includ-
ing the Barro Alto nickel, Los Bronces copper and
Minas Rio iron-ore projects. There are also lucra-
tive ventures in the form of the Collahuasi and
Quellaveco copper projects, in Chile and Peru
respectively, and the Cerrejon thermal coal proj-
ect, in Colombia. TAB
AfricA’s premier exportsAfter weeks of uneventful friendlies and European competition qualifying fixtures featuring teams no one’s ever heard, the buzz and pulsating action of the English Premier League has returned. Once again a healthy contingent of African footballers will be exhibiting their skills in front of some of the world’s most passionate sports fan. TABJ looks at eight African exports likely to make their mark this season.
PHOTO CREDITS: naIPung / SHuTTERSTOCk.COm
AfricA’s premier exportsAfter weeks of uneventful friendlies and European competition qualifying fixtures featuring teams no one’s ever heard, the buzz and pulsating action of the English Premier League has returned. Once again a healthy contingent of African footballers will be exhibiting their skills in front of some of the world’s most passionate sports fan. TABJ looks at eight African exports likely to make their mark this season.
speciAL report
029
30 SPECIAL REPORT � African Footballers: africa’s premier exports
Asamoah Gyan—Sunderland
Asamoah Gyan’s heroics in last year’s
FIFA World Cup fired him into the media
spotlight and helped Ghana to the quarter
finals of the tournament.
Sunderland boss Steve Bruce shelled
out £13 million to French club Rennes for his
services and the 25-year old has been busy
trying to repay the gaffer’s faith ever since.
Bruce has had a busy summer and has
signed the young Egyptian winger Ahmed
Elmohamady, following a successful loan
spell with the Wearside club last term.
In January, the Mackems also signed
Beninese playmaker Stéphane Sessègnon
as a player who Bruce says “can play on the
left, on the right, through the middle—he’s
lightning quick and he’s a match-winner”.
But it is the skill and experience of Gyan
that the club is most likely to rely on this sea-
son as the big spenders look to improve on
last year’s underwhelming tenth place finish.
Christopher Samba—Blackburn Rovers
The loyal and dependable Christopher Samba is facing a season of uncertainty at Blackburn Rovers following the clubs disap-
pointing run in to the 2010-11 season.
Manager Steve Kean is under pressure to deliver from both the clubs’ impatient fans and its colourful Indian millionaire owners.
The Blackburn Rovers captain started his career in France, before moving to German capital Berlin to join Hertha BSC. After
three relatively uneventful years, Samba was signed by former Rovers manager Mark Hughes for just short of £500,000.
The powerful defender represents Congo and has played 20 times for the Red Devils. Since joining Blackburn in 2007 Samba has be-
come an automatic first-team pick and has made more than 140 appearances.
Alex Song—Arsenal
Arsenal defender Alex Song was one of the Gunners’ most consistent players
last term and will no doubt be striving to help the North London club win its
first trophy since they beat Manchester United in the 2005 FA Cup Final.
Song made his international debut for Cameroon in 2005 and signed for
Arsenal from French club Bastia in 2006 following a successful loan spell with
Arsène Wenger’s side.
Having lost their star player Cesc Fabregas to Spanish giants Barcelona this
summer, and with French midfielder Samir Nasri on the verge of leaving
31SEPTEMBER 2011 � The African Business Journal
Christopher Samba—Blackburn Rovers
The loyal and dependable Christopher Samba is facing a season of uncertainty at Blackburn Rovers following the clubs disap-
pointing run in to the 2010-11 season.
Manager Steve Kean is under pressure to deliver from both the clubs’ impatient fans and its colourful Indian millionaire owners.
The Blackburn Rovers captain started his career in France, before moving to German capital Berlin to join Hertha BSC. After
three relatively uneventful years, Samba was signed by former Rovers manager Mark Hughes for just short of £500,000.
The powerful defender represents Congo and has played 20 times for the Red Devils. Since joining Blackburn in 2007 Samba has be-
come an automatic first-team pick and has made more than 140 appearances.
Alex Song—Arsenal
Arsenal defender Alex Song was one of the Gunners’ most consistent players
last term and will no doubt be striving to help the North London club win its
first trophy since they beat Manchester United in the 2005 FA Cup Final.
Song made his international debut for Cameroon in 2005 and signed for
Arsenal from French club Bastia in 2006 following a successful loan spell with
Arsène Wenger’s side.
Having lost their star player Cesc Fabregas to Spanish giants Barcelona this
summer, and with French midfielder Samir Nasri on the verge of leaving
the club Arsenal, have found themselves craving stability as the
13-times English champions head into a potentially tough season.
Song is one of several African players Wenger is hoping to utilise
as he aims to add strength to his young skilful side. Recent £10.5 mil-
lion signing Gervinho, a Côte d’Ivoire international, and last season’s
acquisition of Moroccan striker Marouane Chamakh could go some
way towards meeting the expectations of the club’s frustrated fans.
32 SPECIAL REPORT � African Footballers: africa’s premier exports
Dickson Etuhu—Fulham
Plying his trade on the banks of the Thames
in West London, Dickson Etuhu has proved
himself to be a talented and versatile defen-
sive midfielder during his lengthy spell in the
English Premier League.
The former Nigerian international has
spent his entire career within the Eng-
lish league system and following spells
with Manchester City, Preston North End,
Norwich and Sunderland, the 29-year old
seems to have found his most consistent
form at Craven Cottage.
Etuhu was part of the starting XI when for-
mer manager Roy Hodgson took the club to the
final of the 2010 UEFA Europa League and after
another relatively successful year under Mark
Hughes last season, he looks likely to play a
key role this term under the recently appointed
Martin Jol.
The Fulham midfielder was part of the Ni-
geria’s squad that failed to set the world alive
at last year’s World Cup, but has since quit
international football after falling out with
Super Eagles boss Samson Siasia.
Peter Odemwingie—West Bromwich Albion
After starting his professional career in Nigeria for Benin City’s Bendel Insurance Football Club,
Peter Odemwingie has since played in Belgium, France and Russia, before being signed by for-
mer West Bromwich Albion boss Roberto Di Matteo for an undisclosed fee last summer.
The forward finished his first season in England as the Baggies’ top scorer with 15 goals
33SEPTEMBER 2011 � The African Business Journal
Benoît Assou-Ekotto—Tottenham Hotspurs
The brutally honest Benoît Assou-Ekotto
once said in a U.K. newspaper interview that
he left French Club RC Lens because he
would earn more money in England.
Despite his unorthodox approach to
interviews with the British press, the Camer-
oon international has won over fans of North
London club Tottenham Hotspurs with a
series of uncompromising yet stylish displays
on the left side of Harry Redknapp’s defen-
sive unit.
As part of the Spurs team that qualified
for the Champions League two seasons ago,
Assou-Ekotto will no doubt be a key figure in
this season campaign as the club looks to
restore its top-four status.
His international career has taken off in
the past three years and the defender played
every minute of Cameroon’s three games in
the 2010 World Cup.
Peter Odemwingie—West Bromwich Albion
After starting his professional career in Nigeria for Benin City’s Bendel Insurance Football Club,
Peter Odemwingie has since played in Belgium, France and Russia, before being signed by for-
mer West Bromwich Albion boss Roberto Di Matteo for an undisclosed fee last summer.
The forward finished his first season in England as the Baggies’ top scorer with 15 goals
and in recent weeks has been linked with moves to Premiership rivals Tottenham
and Wigan.
Despite being born in Uzbek SSR, USSR and raised in Russia, Odemwingie was forced
to deal with racist abuse from his own fans during his time with Lokomotiv Moscow.
Odemwingie, who opted to play for Nigeria, was also eligible for a call up by the
Russian and Uzbek national teams.
34 SPECIAL REPORT � African Footballers: africa’s premier exports
Yaya Touré—Manchester City
Arguably the most impressive of Man-
chester City’s multi-million pound signings
last season, Yaya Touré scored both the
winning goal against city rivals Manches-
ter United in the semi-final of the FA Cup,
and the winning goal in the final against
Stoke. In scoring the winning goal at Wem-
bley, Touré brought Manchester City’s fans
their first taste of silverware since 1976.
Touré joined Manchester City from
Barcelona in July 2010, when he linked up
with his elder brother and former Arsenal
defender Kolo Touré.
The pressure is on Roberto Mancini’s
Manchester City to outperform last sea-
son’s successes, and with Champions
League football on the cards Touré looks
set to play pivotal role in what could be an-
other history-making season for the blues
half of Manchester.
PHOTO CREDITS: AHMAD FAIZAL YAHYA / SHUTTERSTOCK.COM
35SEPTEMBER 2011 � The African Business Journal
Didier Drogba—Chelsea
He may be coming towards the end of his tenure as Chelsea’s first-choice
striker following the £50 million arrival of Spaniard Fernando Torres midway
through last season, but no list of Africans making their mark on England’s
top league would be complete without Didier Drogba.
Known in his native Côte d’Ivoire for his humanitarian commitments, the
country’s all-time highest goal scorer has even found himself in Time maga-
zine’s 100 most influential people for his role in the country’s peace process.
His medal tally includes three Premier League titles, three FA Cups and
two League Cups, and he also has captained Côte d’Ivoire at two World
Cups (2006 and 2010).
At the grand age of 33 it would be wise not to expect the same fireworks as
he’s provided in previous seasons, but if Torres continues to struggle in his quest
to hit the back of the net, there can be no doubt that Drogba will continue to pile
the pressure on the Spaniard, whenever he gets his chance. TAB
PHOTO CREDITS: AHMAD FAIZAL YAHYA / SHUTTERSTOCK.COM
Poprica!TABJ takes a second leisurely stroll through the enthralling landscape of African-influenced pop music. This month’s set list explores three more unforgettable discs, all from the most indulgent decade in the history of mankind.
pArT
TwO
Poprica!
speciAl repOrT
pArT
TwO
38 SECTION � Title
Contrary to popular opinion this Stevie Wonder foot-tapper isn’t just a frivolous novelty tune that restaurants play every time a guest
celebrates a birthday. Indeed, it is a record that was originally designed to celebrate the monumental achievements and legacy of African-
American civil rights activist Martin Luther King. For Stevie it represented a continued departure from his funk and soul pomp. At this time he
was happy to venture into the Cinzano-drenched nightclub of 1980s pop, instead.
HAppy BirTHDAy (1981) By sTeVie wOnDer
Rap legend Afrika Bambaataa, or Kevin Donovan—as his parents prefer to call him—changed his name after he won a writing competition,
which earned him a life-changing trip to Africa. A couple of years after his breakthrough single in 1981 he collaborated with Soul Sonic Force
to create this back-spinningly electronic, politically motivated and percussion infused hip-hop treat. The triumphant lyrics make regular
references to heroic figures of the past and influential icons of contemporary street culture.
renegADes Of funk (1983) By AfrikA BAMBAATAA & sOul sOnic fOrce
The Bangles are possibly the first and last band to base one of their records on ancient cave drawings. A relentlessly catchy tune, the all-
girl group from America had brought archaeology to the masses in a way that no one could have predicted. The song also gave rise to a daft
dance which responded obediently to the record title, often with embarrassing results. Popular at weddings and birthdays the choreography
involved thrusting your head back and forth using your neck to exaggerate the movements. TAB
wAlk like An egypTiAn (1986) By THe BAngles
39AUGUST 2011 � The African Business Journal
Contrary to popular opinion this Stevie Wonder foot-tapper isn’t just a frivolous novelty tune that restaurants play every time a guest
celebrates a birthday. Indeed, it is a record that was originally designed to celebrate the monumental achievements and legacy of African-
American civil rights activist Martin Luther King. For Stevie it represented a continued departure from his funk and soul pomp. At this time he
was happy to venture into the Cinzano-drenched nightclub of 1980s pop, instead.
HAppy BirTHDAy (1981) By sTeVie wOnDer
Rap legend Afrika Bambaataa, or Kevin Donovan—as his parents prefer to call him—changed his name after he won a writing competition,
which earned him a life-changing trip to Africa. A couple of years after his breakthrough single in 1981 he collaborated with Soul Sonic Force
to create this back-spinningly electronic, politically motivated and percussion infused hip-hop treat. The triumphant lyrics make regular
references to heroic figures of the past and influential icons of contemporary street culture.
renegADes Of funk (1983) By AfrikA BAMBAATAA & sOul sOnic fOrce
The Bangles are possibly the first and last band to base one of their records on ancient cave drawings. A relentlessly catchy tune, the all-
girl group from America had brought archaeology to the masses in a way that no one could have predicted. The song also gave rise to a daft
dance which responded obediently to the record title, often with embarrassing results. Popular at weddings and birthdays the choreography
involved thrusting your head back and forth using your neck to exaggerate the movements. TAB
wAlk like An egypTiAn (1986) By THe BAngles
wATer wArsCould water worries spill into war?
pOliTics
wATer wArsCould water worries spill into war?
041
42 POLITICS � Water Wars
43SEPTEMBER 2011 � The African Business Journal
Water—to those who have it, it seems in plentiful supply. Safe drinking water, however, is still denied to one-sixth of the world’s people. as Somali plunges into famine TABJ ponders whether the next great war could be over something as seemingly trivial as water.
wHeTHer iT is for drinking, cleansing, industry
or agriculture water has metaphorically, spiritu-
ally and physically transcended borders, religions
and nationalities. Could something as sacred as
water really provoke widespread killing?
The idea of going to war over this most fun-
damental of human rights is not an image most
can very readily conjure. Yet, for many—including
Egyptian diplomat Boutros Boutros Ghali—the
concept of violent, large scale conflict over water
is a clear and present danger. The former UN
secretary firmly believes that many 21st century
wars will be fought over water. He reasons that
wars have been waged over other natural re-
courses, such as oil, so why not water?
Hard to swallowThe term ‘Water Wars’ has been around for
many years (there is no definitive explanation
regarding its origins) and does not necessarily
refer to conflict on a grand scale. ‘War’ in the
context of water could mean a low-tech, unso-
phisticated battle between resource poor, eco-
nomically unsound nations. It could be guer-
rilla in its nature—even between civilians driven
to desperate measures by drought or famine.
Organized military conflict, however, is also a
serious possibility. Indeed, government’s which
are concerned about a breakdown in commu-
nication, or another country redirecting water
resources—as has happened between India and
Bangladesh—may seriously consider going to war.
The philosophy being that the casualties inflicted
while fighting to protect or reclaim an established
water source would be considerably less than
those incurred as a result of not having a supply
of clean water.
At present the international water scene is
one of relative peace. Countries tend to cooper-
ate when it comes to sharing water resources.
The level of comradeship, however, is hard to as-
certain—it maybe just a case of sharing because
they don’t really know who owns it (land boundar-
ies tend to be established whereas water, by its
very nature, is hard to pin down).
Despite this relative harmony where water is
concerned, the increasingly limited supplies have
given rise to tensions, and some international
relationships are beginning to fray or get even
worse than they already are.
44 POLITICS � Water Wars
Current water shortages are occurring for
a number of reasons. The global population is
booming and, in spite of an increasingly brutal
AIDS epidemic, this is especially the case in Sub
Saharan Africa. Numbers of people are grow-
ing at a rate of three per cent every year and,
since the 1960s, the population had doubled. In
20 years it will have doubled again. While other
countries have adopted a more ’Western’ para-
digm Sub Saharan Africa still produces compara-
tively large families.
Many rivers to crossSome of the nations most at risk use the basin
area of the Nile. The longest river on the planet,
it courses through ten countries in north-eastern
Africa, from Rwanda to Egypt. Water quality
throughout its stretch varies from perfectly drink-
able to life-threateningly polluted. Contamination
occurs through the effects of industry, agriculture
and household waste.
Egypt has a historical claim to the Nile’s
resources, having acquired its rights several
hundreds of years ago. Although this has been
the focal point of speculation, it is nevertheless
assumed that any reduction of Egypt’s supplies,
or interference by upstream countries, would be
seen as highly provocative. Sudan has been the
most active in securing its place as one of the
highest Nile basin users by creating four damns
in the last century.
In contrast, Ethiopia uses only one per cent
of the Nile’s resources despite its tributaries pro-
viding the Nile with 86 per cent of its supplies.
Perhaps the only reason that conflict has been
avoided is that neighbouring states do not have
the military recourses to enter into any kind of
organized conflict and therefore succumb to the
bullying tactics of richer nations.
Water has already contributed to conflict and
could be cited as one of the main reasons for
the 1967 Arab-Israeli war. In 1964, Israel had
started to take large quantities of water for its
National Water Carrier project. The Arab states
responded by diverting water before it entered
Israel, prompting Israeli defense forces to carry
out a series of attacks on the diversion works.
Water fallThe Middle East, which constitutes five per
cent of the global population, shares only one
percent of the usable water supply. This has
frequently added significantly to the omni-
present hostilities between Israel, Jordan and
Palestine. Although all three rely on the River
Jordan, it is Israel that controls and frequently
limits the supply of water to its neighbours.
Although oil has been traditionally the most
45SEPTEMBER 2011 � The African Business Journal
fiercely protected commodity; provocation and
global warming could prove a lethal cocktail,
making this area a prime location for the first
all-out water war.
With these examples in mind it is interest-
ing to note that leaders of both Egypt and Israel
(President Anwar Sadat and King Hussein re-
spectively) have in the past claimed that they
would only go to war with each other over water.
A further and undeniable threat is environmen-
tal change, including an unpredictable climate,
erratic rainfall, drought and the negligible perfor-
mance of underground water supplies known as
aquifers. Often this will escape attention because
the damage cannot actually be seen.
It is not only poor countries that have re-
moved a disproportionate amount of under-
ground water. In Arizona they are taking water
at such a rate that only half will be naturally
renewed. The invasion of natural underground
supplies will almost certainly continue as previ-
ously under-developed countries enter a period
of increased industrialization. An additional and
constant environmental threat is, of course, the
depletion of natural resources through the evap-
oration of rivers and lakes.
Ultimately, there is a very real chance that
the combination of nature, greed, ignorance and
lack of foresight could result in catastrophic con-
sequences, including war.
It is possible that the global community is
guilty of burying its head in the sand while the very
source of life trickles through its fingers. TAB
OuT Of THe cOMfOrT zOne046
OuT Of THe cOMfOrT zOne
Business & culTure
48 BUSINESS AND CULTURE � Teacher in africa
after years of teaching business students in the u.K., rupert Freeman decided his knowledge could be used to make a difference in africa. In the past year he has been delivering life-changing lessons, while also learning a few of his own….
iT’s Been A difficult time if your name is Rupert.
As one of this exclusive club attempted to save
his grizzly empire, penniless Rupert Freeman was
selflessly sharing his knowledge with aspiring,
but less fortunate students. TABJ talks to a man
who arrived in Egypt to teach business, only to
find himself in the middle of a bloody revolution.
TABJ: Why did you decide to up sticks and leave
your cosy job in England?
ruperT freeMAn: To be honest, I was concerned
that Europe was heading for financial meltdown,
and schools in the U.K. would be seeking cost-
cutting opportunities (redundancies, pension cuts,
reducing the number of white board markers, that
kind of thing). I’ve been proved right to a certain
extent, although admittedly issues in Egypt—like the
overthrowing of a tyrannical regime—have put those
initial concerns into some perspective!
TABJ: What was so appealing about Cairo?
rf: It’s a different continent, which has an in-
creasing middle class population and average
GDP, resulting in better salaries, reasonable tax
payments and good working conditions.
49SEPTEMBER 2011 � The African Business Journal
TABJ: Why do you find teaching business so re-
warding?
RF: It provides an opportunity for me to pass on
my extensive experience in business, accounting,
marketing, property and sales, to young Egyptian
people, while also inspiring entrepreneurship.
This will, in turn, improve economic conditions
and pave a way for future generations of busi-
ness people. It’s incredibly important that I leave
a lasting legacy. I am determined to release po-
tential and these students have it in abundance.
They want to live better lives, earn a good wage
and provide for their families.
“It’s incredibly important that I leave a lasting legacy. I am determined to help release potential and these students have it in abundance. They want to live better lives, earn a good wage and provide for their families.”
TABJ: How responsive have your students been
so far?
RF: My students are very keen to emerge from their,
often very difficult, circumstances. They are really
receptive to British standards and techniques in
teaching. Typically, Egyptian teaching methods are
based on repetitive learning, but I aim to use a
more varied and active pedagogy. Keeping people
engaged is vital and prepares them for all kinds of
different working environments.
TABJ: Have they got the potential to succeed in
the cut throat world of business?
RF: Cairo has historically been a centre of trade
between Europe and the rest of the world, with
the Suez Canal being the mid-point of the world’s
shipping activities. As a result of this historic hub,
business studies is the most popular subject at
my school, and all these pupils have a natural
curiosity about sales and business. It has been
a real privilege to be able to nurture this enthu-
siasm into something dynamic, not only for the
individual, but for the whole city.
TABJ: When did you realize that the scent of revo-
lution was in the air?
RF: There were rumours milling around the staff
room shortly before the real problems started, and
the British embassy sent a strangely vague email
to expats advising them not to go down town. It
was clear something very serious was unfolding
when we witnessed terrifying gun fights, screams
50 BUSINESS AND CULTURE � Teacher in africa
and bloodshed at the end of the road we live on.
At this point the caretaker of the building
dusted off his anachronistic World War II machine
gun and all hell broke loose. We hid in our rooms
and hoped that eventually we would be picked up
and taken to safety.
It was surreal—in a situation like that you go
into a state of shock; your brain simply cannot
comprehend what is happening. I do remember
briefly thinking, ‘I might actually die here.’ We
were witnessing history, but when your life is
under threat you start to question the wisdom
of your decisions. It was a warzone, the people
were determined to kick the government out
and I had no idea how it was going to end.
“It was clear something very serious was unfolding when we witnessed terrifying gun fights at the end of the road we live on. at this point the caretaker of the
building dusted off his machine gun and all hell broke loose.”
TABJ: What action did the school take to ensure
your safety?
rf: The school had some fairly odd, but ultimately
useful, contingency plans in place, which in-
volved taking us in convoy to the beach resort of
Sharm el Sheik. Bizarrely, they bolted us into an
all-inclusive hotel until events subsided. The only
thing to do all day was eat from the unlimited
buffet, until our stomachs begged for mercy. At
this point I would lie down before reconvening for
the next marathon feeding session.
It was very weird to know that crimes against
humanity were happening a few miles away and
we were just eating until it all died down. All
schools in Cairo were closed for six weeks, but I
heard that some expats weren’t taken away from
the trouble and they just had to wait.
51SEPTEMBER 2011 � The African Business Journal
TABJ: Did you ever consider leaving?
rf: Within a few weeks the rebels had conquered
ex-president Hosni Mubarak and it seemed that
the country was entering a brave new chapter.
In hindsight, the Egyptian revolution was rela-
tively short compared to others, and we decided
that to leave would be unfair on a school, which
treated us so well during a very dangerous pe-
riod. I also owed it to the students to return and
finish the job I started. It’s this kind of incident
that tests the mettle of a passionate teacher, and
I’m glad that I stayed.
“Within a few weeks the rebels had conquered ex-president hosni Mubarak and it seemed that the country was entering a brave new chapter.”
TABJ: How much as Cairo changed since the old
regime was overthrown?
rf: Film, social discussion, music and even graf-
fiti have become much more open. Shortly after
arriving back we attended a film night with a
French Revolution theme. This would have been
impossible only three months earlier.
TABJ: What has been the most rewarding aspect
of your job?
rf: I thrive on teaching young people the me-
chanics of capitalism and the potential of en-
terprise. I have grown to love it in Egypt and to
see the people of this incredible country enjoy
a sense of freedom and hope has been truly
wonderful. The experience of the revolution
has been unforgettable and made me realise
that my mission here has only just begun. I
don’t have any regrets. TAB
052
sODA kingSparkling performance
fOOD & Drink
052
54 FOOD & DRINK � Soda King
55SEPTEMBER 2011 � The African Business Journal
Soda King puts the fizz into the carbonated drinks industry by providing a veritable kaleidoscope of refreshing, revitalizing and irresistible beverages.
As sODA king’s name suggests, it has firmly established itself
as pop royalty in stores throughout Africa—no mean feat when
you consider who they’re up against! Its thirst quenching lines
cover every conceivable taste, which is just as well in a coun-
try where enjoying the great outdoors is a passion and hydra-
tion is virtually a way of life.
56 FOOD & DRINK � Soda King
Thirst for excellenceThe company began its rapid climb to the higher
echelons of the drinks industry after purchasing the
intellectual property, trademarks, knowledge and
recipes from a different organisation, eight years
ago. The previous owners had been trading since
1997 but after the takeover in 2003 the company
totally reinvented itself as Soda King. After assum-
ing its position on the throne it set about creating
a drinks emporium that offers sensational choice
and an unrivalled commitment to production. It was
an ambitious manifesto, but they haven’t bottled it
(well, in a way they have!).
Remarkably the company—whose headquar-
ters are based at picturesque Camps Bay, South
Africa—started with only a few members of staff.
This workforce has now risen considerably, and
Soda King runs a very smooth operation, using
their streamlined and talented workforce as ef-
ficiently as possible. Consequently, the guys are
a closely knit outfit and as well-oiled as the ma-
chines they operate.
Drink upSoda King has built its distinctive brand through
the sheer variety of its products, often venturing
57SEPTEMBER 2011 � The African Business Journal
into new, unchartered areas. They currently boast
15 winning flavours, from traditional favourites
like sparkling orange, raspberry and lemonade,
to more exotic concoctions like coco pine, grana-
dilla and red grape. Other notable hits include
cream soda, apple and iron bru. Unsurprisingly,
the drink which has been crowned as the most
enduring and popular is King Cola—a classic riff
on the grand old master.
Although the company is relatively small com-
pared to its famous rivals, in terms of flavours,
combinations and formats it packs a formidable
punch. It has certainly proved popular with con-
sumers, who have enjoyed the interesting alter-
natives to usual soft drink selections. Let’s face it
everyone should try passion fruit and lemonade
at least once in their lives!
Under the ‘Aqua King’ banner it also provides
a range of healthy and rehydrating bottled water
options. Filtered and purified, these drinks offer
the more discerning palette a choice of crystal
clear still, sparking or flavoured waters. It’s an-
other example of the company’s devotion to pro-
viding everyone in the country with a drink they
will relish consuming.
Technological advancements have also
58 FOOD & DRINK � Soda King
allowed the company to produce pure non-alco-
holic malt drinks without having to go through
a brewing process. This ensures a constant
and considerable supply of a very popular
drink, without any arduous processes.
Fruit of the franchiseIn addition to the beverages line Soda King also
procures, supplies and installs complete turn-key
bottling plants for businesses on the African con-
tinent. This occurs under a franchise agreement
that allows outlets to take advantage of Soda
Kings brands, training, reputation and continu-
ous supply of concentrates. These tend to be
long-term partnership arrangements that bring
bottling expertise and knowledge to the local
community at affordable prices.
The franchises have enabled the Soda and
Aqua King brands to become ubiquitous throughout
the country, creating a brand with real presence.
It also manifests those sacred virtues of customer
trust and brand loyalty as more people are intro-
duced to the company’s array of temptations.
This development is very important to the
steady growth of the company as Managing Direc-
tor Gian Mani explains: “Expanding into Africa is
an evolving process that requires adaptation to
changing circumstances. We’re really pleased with
59SEPTEMBER 2011 � The African Business Journal
GRANMALT MALT PRODUCTS
for easy production of• non-alcoholic malt beverages• malted milk• beer
Many thanks to Soda King for the great partnership!
the gradual expansion and still maintain big ambi-
tions. It’s an exciting platform to do business, with a
vibrant economy and great potential for the future.”
“We have also have a proven track-record of
delivering the franchise package on time, with
continuity of requisite raw materials, equipment,
strong brands and complete training of franchi-
sees in all aspects of the business, from techni-
cal and production to quality control,” he added.
BubblingSince its conception Soda King has expanded
from one factory, in 2003, to seven across
South Africa and other African countries. All
the factories are equipped to produce, market, sell
and distribute the complete range of soft drinks,
through the highly successful franchise system.
With the taste of success as sweet as some of
their drinks Soda King plans to open at least another
15 franchises over the next three years. It is also look-
ing at the possibility of expanding outside Africa and
eventually becoming a globally recognised brand.
It is perhaps the company’s slogan that sums up
what the company wants its customers to retain and
its drinks to encourage…a zest for life. TAB
www.sODAking.cO.zA
cHilTern fArMsCore, what a lovely pear
cHilTern fArMsCore, what a lovely pear
061
fOOD & Drink
62 FOOD & DRINK � Chiltern Farms
63SEPTEMBER 2011 � The African Business Journal
a fruit business is only as good as the next apple it selects. For Chiltern Farms each and every one is as delicious as the last.
geTTing yOur fiVe fruit and veg a day can either be slightly arduous or, if
you’re very lucky, a pleasurable indulgence. There is nothing like sinking
your teeth into the sweet and delicious flesh of a crunchy apple or, come to
that, a seductive pear.
It is with this knowledge that Chiltern Farms prepare their cherished
orchards, insisting that the fruit of their efforts are matched by the taste of
the fruit they so lovingly produce.
Mudge sticksFor over half a century Chiltern Farms has been run by the devoted and
passionate Mudge family. After originally being purchased by their father in
the 1950s the operation is now run by Nigel and Des and, like the previous
branch of the family tree, they are mad about apples and pears. Nigel’s son
is also involved in the running of the farm, making it three generations of
Mudge to join the Chiltern production line—a veritable dynasty. The apple
certainly doesn’t fall far from the tree.
64 FOOD & DRINK � Chiltern Farms
The original land consisted of 220 acres
which was carefully nurtured to create some
formidable orchards. The combination of fertile
ground, attention to detail and unique conditions
create apples and pears of extraordinary class.
Many of those original trees continue to spawn
irresistible fruit to this very day.
Fast and juiceOver the years Chiltern Farms has considerably
expanded its operations. In 1989 things really be-
gan to take off as the ambitious brothers began to
make their vision a reality—increasing the amount
of produce, exporting greater quantities to even
more countries and, perhaps most impressively,
adding a packing house to its facilities. This result-
ed in the good folk at Chiltern Farms being able to
regulate the life cycle of an apple from the exact
second it starts to form to the triumphant moment
when a customer takes their first bite. Growing,
picking, packing and providing pure joy—quality
control doesn’t get any better than this.
Multi-national companies should perhaps
take note that it is possible to grow a company to
grand new heights without sacrificing the family
ethos that set the standards in the first place.
Des Mudge explains, “Our father showed such
nous and determination to create the company,
65SEPTEMBER 2011 � The African Business Journal
The design, manufacture and construction of steel structures for factories, warehouses, packing sheds, mezzanines, cellars, cold storage complexes, lean-to structures, aircraft hangars and cooling tunnels are our areas of expertise and what we are trusted for by hundreds of satisfied clients.
We look forward to working side by side with each new and existing customer so we can achieve the best possible solution in the most cost efficient way. And we proudly invite you to hold us to our promise of quality, customer satisfaction and ongoing after-sales service in everything we do.
Because LA Staal is the steel construction company where you will find experts you can rely on
that we always wanted to follow in his footsteps—
we had grown up on the farm and it was in our
blood. When Nigel and I had the chance to take
over the management we recognised the potential
for expansion, and now the company exports a
variety of fruit all over the world.”
In addition to the continued production of ap-
ples and pears Chiltern Farms now has a 16 hect-
are plot set aside for the cultivation of Sharon fruit.
This increasingly popular, coreless and sweet fruit
has been recognised as an antidote against heart
attacks and is exported in large consignments na-
tionally and internationally. Another notable fruit to
take its place among the resplendent Chiltern acres
are blueberries, which are vociferously consumed
in the United Kingdom.
Even in tough times Chiltern Farms’ apples
or pears or, indeed, Sharon fruit have risen
above adversity to provide nourishment and good
health to millions of fans worldwide. When you
tuck into a rewarding treat from the fruit bowl
suddenly ‘credit crunch’ takes on a whole new
meaning. TAB
MOTOr HeADuD Trucks
066
TrAnspOrTATiOn
68 TRANSPORTATION � uD Trucks
As wiTH Any aspect of motoring, it helps if you
know what you’re doing. You certainly won’t find
people at UD Trucks peering under bonnets and
scratching their heads. Indeed, when a company
has been passionately building, improving, nur-
turing and generally tinkering with engines as
long as this company, you know that your journey
will be a smooth one.
With over seven decades of experience and literally millions of miles on the clock uD Trucks is the epitome of the well-oiled machine.
69SEPTEMBER 2011 � The African Business Journal
70 TRANSPORTATION � uD Trucks
In reverseUD Trucks first hit the road back in 1935, when
the company was founded in Japan by a German
diesel enthusiast called Kenzo Adachi. The busi-
ness began by manufacturing diesel engines in
Tokyo under the name of Nihon Diesel Industry.
Over the next 13 years the company would
release several new models, while trading un-
der a number of different names. In 1953 the
ground-breaking Uniflow ‘scavenging’ diesel
engine was launched and five years later, Minsei
Diesel—as the company was then known—was
acquired by Nissan Motor Corporation. At this
point the UD Trucks Corporation was born and
the company was firmly established as one of
Japan’s leading diesel manufacturers.
The company continued to break new ground
and in 1973 became the top heavy-duty truck
manufacturer in Japan. By 1984, Nissan Diesel
trucks were exported to 140 countries worldwide.
African Business Journal-SYSPRO supply chain.indd 1 8/12/2011 3:25:50 PM
71SEPTEMBER 2011 � The African Business Journal
African Business Journal-SYSPRO supply chain.indd 1 8/12/2011 3:25:50 PM
72 TRANSPORTATION � uD Trucks
African odysseyUD Trucks Southern Africa has enjoyed a proud
history of success since it was established in
1962. It is easily UD Trucks Corporation’s top
market outside Japan. Over the years, the com-
pany has built a strong reputation as a credible
and successful truck supplier, boasting un-
equalled flexibility in the industry.
In 2002, Nissan Diesel South Africa (NDSA)
was formed, separating the company from
Nissan South Africa in the process. During the
following year, the company moved all its facili-
ties to new premises in Rosslyn, underlining its
independence and setting the stage for a new
era in which the company could focus entirely
on the trucking industry.
General manager of corporate planning and
marketing Rory Schulz thinks that the UD ethos
has been instrumental in their African expan-
sion. “Through innovative engineering, aimed
at generating benefits for people and the envi-
ronment, UD Trucks has applied the technolo-
gies that it has amassed in the diesel engine
field, to produce an even greater range of
comfortable, safe and environmentally friendly
vehicles,” he said.
73SEPTEMBER 2011 � The African Business Journal
74 TRANSPORTATION � uD Trucks
“Through innovative engineering, aimed at generating benefits for people and the environment, uD Trucks has applied the technologies that it has amassed in the diesel engine field, to produce an even greater range of comfortable, safe and environmentally friendly vehicles.”
75SEPTEMBER 2011 � The African Business Journal
76 TRANSPORTATION � UD Trucks
Johannesburg21 Brunel StreetTulisa Park,Johannesburg, 2197Tel: (011) 613-1070Fax: (011) 623-1097
DurbanUnit 1, 36 Alexander Rd.Westmead, Pinetown, 3610Tel: (031) 700-9017Fax: (031) 700-9079
Cape TownUnit 4, Henton Park,25 Stella RoadMontague GardensCape Town, 7441Tel: (032) 555-1239Fax: (021) 555-1278
Aero Truck supplies innovative aerodynamic solutions for the Southern African trucking industry. As SA's leading manufacturer and supplier of truck aerodynamic systems we provide state of the art aerokits for all makes and models of trucks. Where required we also undertake development projects examples of which are Barloworld's environmentally friendly "Green Truck" and Baker's Transport Advanced Aerodynamic test vehicle. With over 20 years experience Aero Truck is are able to provide the service levels our customers expect together with the expertise to ensure that you too see real savings on your fuel bills. We also supply one of SA's strongest and most stylish range of bullbars for trucks: The Ecobar.
WE TAKE THE DRAG OUT OF TRUCKING
77SEPTEMBER 2011 � The African Business Journal
Brand loyaltyUD Trucks Southern Africa only offer vehicles
engineered, developed and rigorously tested
to combat the unique terrain of the region. The
company also continues to develop its footprint
in the African market wherever fleets can benefit
from its efficient design, state-of-the art technol-
ogy, quality assembly and dependable support.
The company places great emphasis on
building long-term relationships with custom-
ers by providing ongoing support throughout a
product’s lifecycle. UD Trucks Southern Africa’s
dealers remain committed to providing their cus-
tomers with innovative transport solutions and
service offerings, built on trust, in-depth industry
knowledge and priceless technical skills.
“As part of its on-going commitment to the
truck industry, UD Trucks Southern Africa con-
tinually engineers quality local options to meet its
customers’ demands and to develop innovative
products for the Southern African market and its
unique conditions,” added Rory.
78 TRANSPORTATION � uD Trucks
79SEPTEMBER 2011 � The African Business Journal
80 TRANSPORTATION � uD Trucks
UD Trucks Southern Africa currently has
dealers in Angola, Botswana, Lesotho, Madagas-
car, Malawi, Mauritius, Mozambique, Namibia,
Seychelles, Swaziland, Zambia, Zimbabwe and is
currently investigating a number of opportunities
for expansion across the region.
Suiting all needsThe Quon range is the embodiment of outstand-
ing ‘extra-heavy’ commercial vehicles, and has,
since its launch, positioned the company at the
forefront of the sector. Researched, developed
and refined to suit local conditions, the Quon
81SEPTEMBER 2011 � The African Business Journal
82 TRANSPORTATION � UD Trucks
range has been specifically designed to provide
customers with the best in heavy duty trucking.
UD Trucks’ ‘heavy’ commercial range is
geared to achieve excellent fuel consumption,
ensuring that a high average speed is achieved
to boost productivity. The class-leading perfor-
mance of these units is achieved by the unique
combination of engine power, transmission and
final drive ratios. With its proven flexibility and
superb durability, this series is ideally suited to
meet the needs of the distribution sector.
UD Trucks Southern Africa’s range of Medium
Commercial Vehicles not only adheres to Euro II
emission regulations, but continues to exceed
the expectations of customers in various applica-
tions. The company takes great care to ensure
that it provides a high quality product to sustain
our objective of providing the highest possible
level of durability.
Customer satisfactionBuilt on a passion for engineering, reliability
and customer relations, UD Trucks has always
offered a competitive edge in a challenging
market. The company is determined to adapt to
the changing needs of customers and deliver
755 Rood Street, Hermanstad 0082 • P.O. Box 50079, Hercules 0030, South AfricaTel: 012 379 4241 | Fax: 012 379 4240
PRETORIA ENGINEERS
SPECIALISTS IN TRUCK CHASSIS LENGTHENING AND SHORTENING
Established in 1931
83SEPTEMBER 2011 � The African Business Journal
services and products that go beyond what
is expected.
“We want to contribute to the performance of our customers’ businesses by always endeavouring to offer products that strive to give the most efficient lifecycle possible. We aim to thoroughly and completely understand customers’ needs, and then provide them with services and products that fit their businesses,” enthused rory.
UD Trucks’ staff is continuously trained in
accordance with the latest developments, equip-
ping them to solve problems faster and assist
customers in finding the right solution in the
shortest space of time.
With such endearing enthusiasm for trucks,
engines and mechanical wizardry it appears that
UD Trucks has many more landmarks to reach,
proving that ‘reinventing the wheel’ does have its
uses after all. TAB
www.uDTrucks.cOM
BUSMARK 2000
For further enquiriesplease contact
Danie Human on+27 (0)11 412 [email protected]
We have the bus for you“Quality, Safety, Reliability & Innovation”
TrAnspecThe industrial body builders
TrAnspecThe industrial body builders
085
TrAnspOrTATiOn
86 TRANSPORTATION � Transpec
87SEPTEMBER 2011 � The African Business Journal
Whether through customisation or modification, body building firm Transpec is providing its ambitious clients with solutions to suit their flourishing fleets.
As glOBAl Businesses look to invest in Africa, the
role of local companies in supplying the equipment
needed to boost growth is quickly coming into focus
and gaining in importance.
88 TRANSPORTATION � Transpec
The South African commercial vehicle body
building firm and trailer manufacturers Transpec is
one such business profiting from the increased in-
vestment made in the continent’s industrial sectors.
Established in 1985, Transpec has grown from a
relatively small position within its industry to become
one of the major players in South Africa’s body build-
ing and trailer manufacturing environment.
Based in the eastern South Africa state of
KwaZulu-Natal, Transpec is a body building firm
that aims to work with its customers to provide
those complicated, but effective transport solutions
that tend to lead to repeat business, according to
the firm’s Financial Director Rowan Alford.
Whether its tippers, tankers, panel vans,
semi-trailers or drawbar trailers, Transpec is able
to offer its clients a broad range of services.
Through the customisation of commercial
vehicles the company is able to provide many
applications required in the transport industry;
from painting the cab and body to fleet colours
to providing a hydraulic installation, the firm has
been supplying its customers with top-of-the-line
service for more than 26 years.
Growing alongside South Africa’s progressThe company has a rich history and from its main
hub in Pinetown, has been able to react positive-
ly to a changing and volatile marketplace.
“Since becoming a democracy [in 1994]
there has been a lot more growth in the country,”
says Alford. “The South African economy has,
in general, performed pretty well and since that
time we’ve grown by adapting and increasing the
size of our production facility.
“over the years, we’ve sustained the business by adding extra production capacity and by also diversifying our products in different areas of the transport industry and covering as many bases as possible.”
“We’ve started tapping markets we’ve never
worked in before and we’ve started working on
a lot of agricultural transport equipment in both
the sugar and timber industries,” Alford adds.
We also moved into the waste removal market
in terms of bringing compacters online, and skip
loaders and hook lifts, are some of the new prod-
ucts added to the range.”
On the construction side of the business,
Transpec supply tippers and tankers, to a large
selection of infrastructure building currently tak-
ing place in South Africa.
Into the African business jungleToday, Transpec is integrating its ambitious targets
89SEPTEMBER 2011 � The African Business Journal
DELFLOW (Pty) Ltd.Postnet Suite 62 Private Bag X1569 Glenvista 2058Tel: 011 826 3443 Fax: 011 826 4340e-mail: [email protected]. No.:2007/012011/07
We offer a range of services such as system design, manufacture of hydraulic and pneumatic systems, field service, and repair of all types of hydraulic equipment.
Delflow are importers of the following brands:
• Duplomatic Oleodinamica Spa- directional valves, pressure control valves and pressure compensated vane pumps.• Aber - PTO’s, PTO pumps and all truck hydraulic-related products.• Ronzio Oleodinamica Spa - aluminium gear pumps group 1 to 3.• VPS - Brevini control valves• SAM – Low speed hydraulic motors
90 TRANSPORTATION � Transpec
for growth with the developing economies in coun-
tries directly north of South Africa.
“This year, about 40 per cent of our turnover
is from the export markets, which represents a
real turn around,” says Alford. “We were doing
quite a bit of export into Africa in the early 2000s
when the Rand was relatively weak and it was
quite cheap to buy equipment.
“But it was in this period that I think we es-
tablished ourselves as a supplier into Africa,” he
adds. “We gained a lot of experience in deliver-
ing equipment into Africa—especially in markets
where conditions can be quite challenging.”
Alford says that the company’s main export
markets are moving beyond the countries it has
traditionally serviced and into states in the central
region of the continent, as well as neighbouring
countries experiencing recent industrial growth.
For example, in recent months the company
has sold 15 sets of timber trailers in Tanzania,
and has received an order for 20 sets of side-
tipping trailers from Mozambique’s coal sector.
Transpec is also experiencing a growing
demand from the agricultural sector, notes Al-
ford, with equipment for the sugar industry being
sought, which he claims is moving further north.
“Sugar growers are going north because it’s
warmer and they can generate better yields,” he says.
91SEPTEMBER 2011 � The African Business Journal
92 TRANSPORTATION � Transpec
93SEPTEMBER 2011 � The African Business Journal
“But we’ve also found that our clients are ap-
proaching us after seeing our products in opera-
tion across Africa.”
Investment in infrastructure and construc-
tion in the region has led Transpec to attempt
to tap into these industries. Alford says that the
company is exporting a lot of construction-based
equipment across Africa with road building proj-
ects in Congo and Malawi proving to be success-
ful ventures for the firm.
“We are also collaborating with a large global
company where we are working on the body of
all the vehicles it is bringing to the region from
Japan,” remarks Alford. “This means we’re mov-
ing into markets in places such as Zambia, Zim-
babwe and across other parts of Africa.
“There’s a lot of movement into the conti-
nent, and I think it is where the next growth sec-
tion is going to be. But even our own domestic
market, despite having been a little quiet in the
past couple of years, is beginning to rear its head
again and is looking much stronger.”
This renewed market confidence is music to
the ears of Alford, who says that both 2009 and
2010 were “shocking years” with low vehicle
sales across South Africa. The company’s abil-
ity to meet a diverse selection of demands has
helped it overcome any problems it was suscep-
tible to in the past two years.
“Demands in our industry are often seasonal because of the different industries we work with such as sugar,” says alford. “What we do is move our production concentration to whatever the biggest demand at the time is. This has given us a lot of flexibility and by having a wide product range we have managed to keep our head above the water.”
As heavy industry sharpens its focuses on the
vast resources in the southern half of the African
continent, Transpec has found itself in a comfort-
able position despite the difficulties associated with
the global economic downturn. TAB
iMperiAl Truck renTAlsThe truck stops here094
iMperiAl Truck renTAlsThe truck stops here
TrAnspOrTATiOn
96 TRANSPORTATION � Imperial Truck rentals
The word ‘imperial’ conjures up a reassuring impression of authority, experience, reliability and trust—precisely why this company put their name to it.
THe yeAr 1975 was unforgettable in many ways. A blockbusting shark
with a vendetta shocked a generation of cinema-goers into cancelling
their swimming lessons forever, snarling young punk rockers The Sex Pis-
tols played their legendary first gig and Arthur Ashe delighted the book-
makers by beating favourite Jimmy Connors at Wimbledon.
97SEPTEMBER 2011 � The African Business Journal
98 TRANSPORTATION � Imperial Truck rentals
While all this was going on plans were being
laid out to form the company that would eventu-
ally become Imperial Truck Rentals—one of the
leading vehicle hire companies in South Africa.
Yep, it was a pretty vintage year.
Gear changeWhen the company was created by Percy Abelkop in
those halcyon days 36 years ago, it began by selling
used commercial vehicles. After recognising oppor-
tunities in the industry, however, it realised the long
term prospects of renting their vehicles were much
better. The new operation started on a small scale,
with 15 vehicles and only two members of staff but
it immediately saw success, resulting in a gradual
enlarging of the fleet.
As it became increasingly profitable the compa-
ny started to obtain a wide variety of different vehi-
cles for every type of job, establishing a reputation
for specialising in all types of commercial vehicles
from half tonne LDVs to huge articulated tractors.
The company currently has over 1,300 vehicles on
its books and this figure continues to rise.
Imperial Truck Rentals supplies its vehicles
on a supply and demand basis, with contracts
drawn up immediately for long and short term
periods. It also has some lucrative long term ar-
rangements as a preferred supplier with major
99SEPTEMBER 2011 � The African Business Journal
100 TRANSPORTATION � Imperial Truck rentals
101SEPTEMBER 2011 � The African Business Journal
24 Hour Roadside Assist 0800 008
800www.udtrucks.co.za
Built on a strong foundation of Ultimate Dependability, a passion for the industry and a professional approach to everything we do, UD Trucks Magnis Bloemfontein is
committed to delivering services and products that go beyond the expected.
As a name synonymous with quality trucking solutions and products since 1968, the dealership is dedicated to adding value to your business by facilitating
vehicle purchases, and ensuring that our customers receive quality technical support and continued parts supply - on time and at a competitive price.
Please contact Graham Howes 071 607 9716 or Dennis Howes 082 293 8159
109 Fritz Stockenstroom Street, East End, Bloemfontein
Tel: (051) 432-0280
www.magnistrucks.com
MagnisBloemfontein
Product shown in photograph is for illustration purposes only, and is subject to stock availability.
Making Light Work of Extra Heavy Loads
With class-leading operation performance, high levels of safety and a focus on driver comfort, UD Trucks’ Quon range offers the best in extra heavy trucking.
The Quon range is powered by the proven reliance and economy of UD Trucks’ quality engine series, and delivers low fuel consumption through
increased combustion efficiency. A number of chassis variations are available to meet various load and road surface challenges, positioning
the Quon range at the forefront of profitable transport solutions.
102 TRANSPORTATION � Imperial Truck rentals
corporations in South Africa.
The workforce now runs to 200 permanent
staff, but if a customer requires a driver or crane
operator the company hires in a person to do
that specific job. With this considered there could
be up to 1,000 people working for Imperial Truck
Rentals at one time.
Some of the most popular vehicles with the
best returns include crane mounted systems,
eight tonne vans, tow lift trucks and refrigerated,
light commercial, 4x4 and double cab vehicles.
Service provision is a top priority and Manag-
ing Director Martin Breed thinks that reliability has
been the key. “Cementing customer relationships is
essential. We offer the best quality service, selec-
tion of vehicles and technical support and our
record indicates that people appreciate it. They are
assured of excellent service 24/7, and our fleet is
available at any time. We’re the only company that
offer this level of commitment.”
Good handlingContinuity has always been an important feature
of the business which, since its inception, has had
the same owners. At the beginning the company
was entirely private before being listed in the early
1990s on the Johannesburg stock exchange and
since then it has been trading as a public company.
103SEPTEMBER 2011 � The African Business Journal
When you’re in the long-haul, you need a truck that delivers. Take our Hino 700 range, which now sports
Automated Manual Transmission. This not only makes our trucks more comfortable to drive, it also helps
prevent costly clutch degradation. Our engine derivatives range from 380 HP to 480 HP, offering you a range
to handle any load. And our cabs come in single or double sleepers.
See, trucking is in our blood. It has always been and it will always be.
The automatic choice. T
OY
T13
9891
/JH
B/E
139891TOYT 27.9X21.6.indd 1 8/15/11 8:42 AM
104 TRANSPORTATION � Imperial Truck rentals
When founder Percy Abelkop retired in the
nineties Bill Lynch took over and three years ago
Hubert Brody took the wheel. The company is
now managed on an entrepreneurial basis by a
team of directors who are constantly looking for
new business and increasing profitability. New
growth objectives are set every year and the com-
pany regularly achieve, and surpass targets.
Ironically, the global downturn has actually
had a positive effect on the company. It was a
rare occasion when the situation actually pro-
duced an incredibly impressive balance sheet.
Breed explains, “When the economy was in a
downward mode during the recession there was
actually an improvement. While they waited for the
recession to subside trucking businesses, instead
of buying fleets, would rent vehicles instead. Last
year when the economy wasn’t that hot there was
an improvement of over 48 per cent.”
Well-oiled machineAlthough the company is still most prominent
in its native South Africa and still very much an
advocate of the Rand, it has recently broadened
its horizons further into Africa, with vehicles run-
ning in Sierra Leone, the Democratic Republic of
Congo, Mozambique and Tanzania.
With operations so dispersed the company
105SEPTEMBER 2011 � The African Business Journal
106 TRANSPORTATION � Imperial Truck rentals
107SEPTEMBER 2011 � The African Business Journal
Our company has been a proud supplier to the Imperial Group since 1982, and we have both grown together since then into the prestige brands that we are today. We have always strived to supply excellent service, quality and price to Imperial workshops and thus have built a relationship which has been mutually beneficial and allowed us to both succeed.
Recently we have joined the family of Imperial Truck Rental by becoming a CBS franchise- part of Parts Incorporated Group- further cementing our close symbiotic relationship in the supply and demand chain, and proving our belief in the future of the winning team.
JOHANNESBURG BRAKE & CLUTCH141 Albert StreetCity & SuburbanPO Box 34047, Jeppestown 2043
Tel: 011 334-6934/5/6/7 | Fax: 011 334-5671Email: [email protected]
had to develop a state of the art and highly so-
phisticated computer system. The software de-
termines the availability of vehicles, where they
are running, who the customer is and, perhaps
most impressively, the exact number of kilometres
driven during each and every one of its thousands
of assignments.
“It’s all there on an integrated computer sys-
tem. When the vehicle moves for instance from
the branch into the work shop for repairs it will
show on the system. No kilometre is will ever go
missing,” added Breed.
As the company progresses with its expan-
sion plans it will invest in many new vehicles,
continuing to offer the most extensive and cut-
ting edge fleet of vehicles in Africa.
These days everything has to be an emotional,
mental and physical ‘journey’. For Imperial Truck
Rentals, it really has been. TAB
www.iMperiAlTruckrenTAl.cO.zA
Sable homeswilling AnD sABle108
Sable homeswilling AnD sABle
cOnsTrucTiOn
110 CONSTRUCTION � Sable Homes
KONSTRUKSIE & PROJEKBESTUUR
WE DELIVER........ON TIME
PLOT 243 SWAVELPOORT • LYNWOOD ROAD EXTENSION • PRETORIAP.O. BOX 2155 • ZWAVELPOORT 0036 • TEL: 012 811 2777 • FAX: 012 811 2780 • [email protected]
REG NO. 1989/025338/23
Elkon was founded in 1989 and specialise in upmarket housing developments. We have successfully completed projects of various magnitudes including factories, urban development refurbishments and cluster developments. The company’s activities are based on 2 main functions namely construction and project management.
22
With the population rising and demand for new, original properties growing by the day, it is reassuring to know that Sable Homes love building incredible properties and great relationships.
In the current climate people are becoming
increasingly reliant on their homes as places to
relax, socialise, entertain, work and generally
reflect their personalities. It certainly helps if the
buildings themselves are welcoming structures
that residents feel immensely proud of.
As far as Sable Homes is concerned the hap-
piness of their customers is the essential foun-
dation upon which the company continues to be
built. Indeed, for almost twenty years it has been
projecting its enthusiasm for housing through
thousands of brilliantly functional and very at-
tractive properties. Properties that inhabitants
are proud to call home.
Scaling the heightsBack in 1993—just as South Africa teetered on
the brink of a brave new era—Sable Homes was
formed, creating its very own piece of history.
Originally the business was founded by Sable
Holdings Abcon Group in order to take on the
residential development responsibilities of the
111SEPTEMBER 2011 � The African Business Journal
ABJ HALF PAGE AD.pdf 1 2011/08/19 5:30 PM
Abcon Group of companies. Previously, the Group
had only focused on commercial and retail de-
velopments, but were keen to venture into resi-
dential properties. After its initial success Sable
Homes then expanded further to create Sabreal
Property Management, which oversees the man-
agement of some of Sable’s projects and also
handles rentals.
With the first chapter of the company’s his-
tory well and truly written Sable Homes now
stand out as property developers with an unre-
lenting and determined focus on superior quality
constructions that embody character, style and
finesse. Its reputation has earned it a place as
one of South Africa’s leading and most trusted
property developers—transforming lives and mak-
ing dreams a reality.
Managing director Anthony Bonnett de-
scribes the company’s ethos: “We have built
our reputation on quality, innovation, excellent
standards and reliability in a highly competitive
environment. It is through our spirit that we are
creating not just fabulous homes, but rewarding
lifestyles for our clients.”
With its vast pool of expertise, meticulous
management and two decades of innovative
design and successful project completions Sable
also provide peace of mind for their clients. Bon-
nett explains: “Over the last 20 odd years our
112 CONSTRUCTION � Sable homes
113SEPTEMBER 2011 � The African Business Journal
114 CONSTRUCTION � Sable Homes
country has seen many development companies
formed and fall by the wayside, as the property
boom sprung up and crashed. Unfortunately this of-
ten means life savings and fortunes are lost owing
to unscrupulous or mismanaged practices. With a
name and history as big as ours, the property buyer
won’t lose any sleep.”
DedicationSince the beginning Sable Homes has always
strived to constantly change and adapt products
and services to meet the ever-changing demands
of the property market. It is passionate about grow-
ing in harmony with new ideas, technology and
expectations.
The company’s ever-expanding array of offer-
ings features greenfield land development, estate
development, sectional title homes and apart-
ments. In addition its portfolio includes retirement
and even golf estates. Sable has also recently
started delivering complete building packages.
Its prestigious position as the residential prop-
erty developer for the Hazeldean nodal develop-
ment in Pretoria East, Gauteng, is its most exciting,
ambitious and lucrative to date. Hazeldean is a
huge project which, on completion, will introduce
an astonishing compendium of residential develop-
ments, shopping centres, office parks, entertain-
ment venues, park-areas, schools and hospitals.
“From first contact, to the ceremonial hand-
ing over of the keys, we are instrumental in the
entire process of building and acquiring dream
homes. We pride ourselves on the skill and ex-
pertise of every staff member,” added Bonnett.
The company currently has 30 dedicated,
highly skilled and experienced employees. They
will be aiming to increase Sable’s market share
in the Gauteng region, while cultivating its repu-
tation as the property developer of choice for any
potential home-buyer or investor.
Green daysThe Hazeldean development is one of the big-
gest green projects in Gauteng, and a substantial
investment has already been made in ensuring
that the project has a completely eco-friendly
infrastructure. It is Sable’s policy to use only
indigenous plants and trees, while maintaining
existing wetlands and green areas in Hazeldean.
In the course of other projects, notably Heron
Banks Golf and River Estate, the sites—which are
situated along the Vaal River—were severely im-
pacted through previous land usage and natural
hydrological flows were impacted by sand mining,
eucalyptus plantations, dirt tracks and informal
agriculture. In response, Sable has realigned
the structure of the wetlands to accommodate
the restoration of precious local biodiversity. The
115SEPTEMBER 2011 � The African Business Journal
company is passionate about making full use
of the natural environment and is committed to
sound ecological practices.
Social media has also been fully embraced
by the company, helping it to communicate with
clients and established investors, providing them
with useful information and updates.
Sable’s refreshingly modern outlook means
they will continue to be inspired by the very land-
scapes they are building on. It’s a positive philoso-
phy that’s, quite literally, set in stone. TAB
www.sABlehomes.co.zAAon South Africa is an authorised financial service provider
Aon FSP# 20555
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Aon05151 Sable Ad.indd 1 2011/07/28 10:03 PM
The South african electrical specialist Penbro Kelnick has worked on some of the continent’s largest construction projects and is showing its big-name clients that quality remains king in times of financial hardship.
penBrO kelnick is one of South Africa’s energy systems and power
distribution installation industry’s leading lights, and is showing its com-
petitors how putting focus on product quality and employee satisfaction
can pay off handsomely.
penBrO kelnickelectric dreams
116
penBrO kelnickelectric dreams
cOnsTrucTiOn
118 CONSTRUCTION � Penbro Kelnick
The company is committed to staying true to an
original formula that has worked for it for many years,
and through the quality craftsmanship of its products
has ensured a large degree of repeat custom.
Born in Germany, Van Aarde moved to South
Africa in 1948 and joined Penbro in 1964, and
has since played a big role in the growth and per-
formance of the company.
Van Aarde won the approval of the local
community by creating a large number of jobs
through his decision to employ people rather
than utilising man-made machinery.
Product quality assuredPenbro has provided its services to construction
The firm, whose interesting name derives from
an amalgamation of the names of its two founders
Penchard and Hutton-Brown, began life building
short-wave converters for AM radio receivers.
When Penchard resigned from Penbro to
start his own radio production company, Hutton-
Brown transformed the company into a manufac-
turer of transformers, wire-wound resistors and
coils for contractors.
Originally named Penbro Convertors when
the company was founded in 1949, it was re-
named in 1980 due to its partnership with Kel-
nick Development.
With its broad and versatile range of prod-
ucts, which includes transformers and resistors,
the company has grown to become one of the
region’s leading electronics specialists.
“We started with only five people and now we
have 120,” says Penbro Kelnick Managing Direc-
tor Herman van Aarde. “The market has changed
quite a bit. We try and manufacture all the old
stuff. We’re one of the very few companies that
still manufacture the stuff we did 30 years ago.”
Throughout its long history Penbro has em-
braced change and through its vast experience has
manufactured a diverse array of products such as
electro-mechanical phase-sequence relays. Penbro
has also built a winding machine for the manufac-
turing of edge-wind resistors in railway locomotives.
119SEPTEMBER 2011 � The African Business Journal
projects and power systems upgrades including
railways, hospitals, stadiums—including some of
the stadia at last year’s FIFA World Cup in South
Africa—and the telecoms sector.
The South African company also has a metal
fabricating department that is able to construct
distributor cabinets.
But it prides itself on the quality of the design
and manufacture of each of its products. Quality
is of the highest significance to Penbro and when
it designs a product it makes sure to implement
reliable components.
It is committed to an intense programme of
research and development in each of its prod-
ucts, often working with its customers in the
“Who do I approach for value in providing an innovative solution to my business?....”
High service levels, after sales support and South African expertise backed by technical support from leading global suppliers.
Rotating MachinesConductor, insulation materials, resins, kits and composites for LV, MV, traction motors and power generators. TransformersRaw materials, components, kits, composites and auxiliary equipment for power and distribution transformers. BearingsPremium quality bearings into the electric motor, conveyor and mining industries.
JOHANNESBURG (HEAD OFFICE) +27 (11) 629 9300 | DURBAN +27 (31) 569 4883CAPE TOWN +27 (21) 556 5720 | MIDDELBURG +27 (13) 246 2330/1PIETERMARITZBURG +27 (33) 345 0264
0 8 6 1 1 W I L E C [email protected] www.wilec.co.za
Te c h n i c a l S o l u t i o n s P r o v i d e r
120 CONSTRUCTION � Penbro Kelnick
design and implementation of its products to
ensure efficiency and reliability.
Its most popular products include power resis-
tors, which are used in applications such as heat-
ers, crane control systems, dynamic braking of AC
variable frequency drives, electric motors, load
testing of energy sources, neutral grounding of AC
transformers/generators and harmonic filters.
Penbro manufactures three main resistors,
including wire-wound resistors, oval and round
edge wound resistors, and continuous ribbon
resistors, and is the sole distributor of back-up
power systems for two French companies.
The electrical specialist also manufactures
standard load banks, used for applications such as
battery integrity testing and equalisation, dynamic
braking of AC variable frequency drives, crane and
elevator control systems, electric motors and load
testing of AC and DC energy sources.
The company services equipment throughout
Africa and provides training for local communities.
“We service equipment in Malawi and Tan-
zania and provide service on a contract basis.
We do training for local people and are a support
basis for them,” says van Aarde.
Penbro is looking to expand throughout the
wider African continent and has aims of estab-
lishing another branch outside of the continent in
order to spread its products and farther afield.
Structurally sound, philosophically purePenbro consists of seven different departments,
all of which are interconnected. Employees are
given access to the managing director and many
employees have been at the firm for an average
of 15 years, thereby demonstrating Penbro’s
commitment to its employees and the close
working relationship it has with its workers.
“One of the reasons why Penbro stands out
from its competitors is that everything we sell
is manufactured in house,” remarks van Aarde.
“We have a strong design and we are one of the
only companies that make certain products, so
we are one of the only companies who make
some products in South Africa.”
The company prides itself on its reliable
workmanship and product, even when faced with
recession or a downturn in the economy. Despite
the effects of the global economic crisis the
company has avoided making major layoffs while
ensuring that the quality of its products remains
at the highest possible level.
“Other companies try to cut down on cost;
we avoid that by doing more service. What will
happen is that we’ll take over complete service
contracts,” says van Aarde.
Penbro has undergone a lot of transformations
since its formation many years ago, but the compa-
ny’s commitment to excellent customer service and
121SEPTEMBER 2011 � The African Business Journal
quality-assured products has remained intact.
The company is committed to quality crafts-
manship and hiring ethically, and many of its
employees are also co-owners of Penbro. In many
cases the company has even lent a hand to the
lives of its workers by assisting them in building
their own houses.
This type of commitment to its employees
has led the company to receive a level four BEE
(Broad Based Black Economic Empowerment
Certificate) contributors score.
Having worked as a supplier and installer
to a number of large projects, including Cape
Town’s Green Point Stadium and Port Elizabeth
Stadium, and having been commissioned by a
large number of big-name clients such as the
Bank of Tanzania, Penbro is emerging from the
recession with its strong reputation in South
Africa and abroad intact, and is no doubt look-
ing forward to an electric future. TAB
elB equipment 122
elB equipment MOVing HeAVen AnD eArTH
cOnsTrucTiOn
122
124 CONSTRUCTION � elB equipment
The South african earthmoving, construction and mining equipment supplier elB equipment is providing high quality machinery in a cost effective manner while maintaining high levels of customer service.
Big prOJecTs neeD big machines and in order to be productive a developer must rely on
those companies able to provide high-quality and efficient machinery.
125SEPTEMBER 2011 � The African Business Journal
126 CONSTRUCTION � elB equipment
ELB Equipment is one such supplier, offer-
ing its customers a broad range of earthmoving,
construction, mining and quarrying equipment
and solutions.
The South African company represents a
number of internationally-renowned manufactur-
ers whose products have been designed to meet
a range of international standards, strict emis-
sion guidelines and safety control regulations.
“We provide a large range of specialist solu-
tions that enhance our clients’ profitability and
we bring machines from across the world into
southern Africa,” says ELB Equipment Director
Desmond van Heerden.
From its earthmoving equipment division
ELB is able to supply clients with a range of
earthmoving equipment products that includes
wheel loaders and tracked excavators. From
its construction equipment division the range
includes backhoe loaders, chain trenchers, di-
rectional drills and motor grader, while hydraulic
hammers, rock drills, and mobile and static crush-
ing and screening plants are available through its
mining and quarrying equipment division.
DESIGNED BY THE OWNER FOR THE OWNERTHE NEW TEREx® TlB840With 50 years of engineering expertise, we’re proud to present the 9th generation Terex® backhoe, our most versatile and efficient backhoe loader yet . . . designed around you and your work. With its spacious new cab, curved excavator boom and servo power transmission system the TLB840 maximises your productivity and profitability on the most demanding job sites. Whether digging, reaching, lifting or loading, the TLB840 is breaking new ground in South Africa.
To find out more about the Terex® TlB840, phone +27 11 306 0700 or visit www.elbequipment.com
What this means for you Spacious and ergonomically designed operator cab for
increased comfort and productivity.
Curved boom for closer loading into trucks and greater
obstacle clearance.
“Deep Dig” dipperstick for the clamping of objects between
bucket and dipper with optional thumb attachment.
High performance 94hp (70kW) charge air cooled engine
with a servo power synchro transmission for smooth and
economical operation.
TEREX DISTRIBUTION LTD
HEAD OFFICE: 14 Atlas Road Anderbolt Boksburg Tel (011) 306-0700 Fax (01) 918-7208 e-mail: [email protected] www.elbequipment.com
Bloemfontein: (051) 432-3594
Brits: (012) 250-1565
Cape Town: (021) 933-2383
Durban: (031) 464-6522
George: (044) 878-0874
Kimberley: (053) 841-0040
Middelburg: (013) 246-2312
Nelspruit: (013) 755-1003
Polokwane: (015) 293-1978
Port Elizabeth: (041) 581-0774
Wolmaransstad: (018) 596-3032
Botswana: (00267) 240-4320
Namibia: (00264) 61-302-2718
Swaziland: (00268) 518-5348
Zimbabwe: (00263) 913-493-849
Zambia: (00260) 212-210-642
© Terex Corporation 2011 – Terex is a registered trademark of Terex Corporation in the United States of America and many other countries.
02318 Terex TLB840 Ad-South Africa 273x210.indd 1 18/08/2011 14:34
127SEPTEMBER 2011 � The African Business Journal
DESIGNED BY THE OWNER FOR THE OWNERTHE NEW TEREx® TlB840With 50 years of engineering expertise, we’re proud to present the 9th generation Terex® backhoe, our most versatile and efficient backhoe loader yet . . . designed around you and your work. With its spacious new cab, curved excavator boom and servo power transmission system the TLB840 maximises your productivity and profitability on the most demanding job sites. Whether digging, reaching, lifting or loading, the TLB840 is breaking new ground in South Africa.
To find out more about the Terex® TlB840, phone +27 11 306 0700 or visit www.elbequipment.com
What this means for you Spacious and ergonomically designed operator cab for
increased comfort and productivity.
Curved boom for closer loading into trucks and greater
obstacle clearance.
“Deep Dig” dipperstick for the clamping of objects between
bucket and dipper with optional thumb attachment.
High performance 94hp (70kW) charge air cooled engine
with a servo power synchro transmission for smooth and
economical operation.
TEREX DISTRIBUTION LTD
HEAD OFFICE: 14 Atlas Road Anderbolt Boksburg Tel (011) 306-0700 Fax (01) 918-7208 e-mail: [email protected] www.elbequipment.com
Bloemfontein: (051) 432-3594
Brits: (012) 250-1565
Cape Town: (021) 933-2383
Durban: (031) 464-6522
George: (044) 878-0874
Kimberley: (053) 841-0040
Middelburg: (013) 246-2312
Nelspruit: (013) 755-1003
Polokwane: (015) 293-1978
Port Elizabeth: (041) 581-0774
Wolmaransstad: (018) 596-3032
Botswana: (00267) 240-4320
Namibia: (00264) 61-302-2718
Swaziland: (00268) 518-5348
Zimbabwe: (00263) 913-493-849
Zambia: (00260) 212-210-642
© Terex Corporation 2011 – Terex is a registered trademark of Terex Corporation in the United States of America and many other countries.
02318 Terex TLB840 Ad-South Africa 273x210.indd 1 18/08/2011 14:34
128 CONSTRUCTION � elB equipment
As well as providing its clients with specialist
solutions and a broad portfolio of movable ma-
chinery, ELB’s vision statement says that it aims
to be “alert and ready to meet the requirements”
of its customers, shareholders, employees and
business associates.
It is committed to achieving excellence in
product distribution and aftermarket service, and
has pledged to its shareholders that it will main-
tain long-term growth. ELB’s ambitious aims are
being met in part due to its commitment towards
the continual development of its staff, ensuring
that they act with high levels of professionalism.
“Moral values are pretty strong throughout
the group,” says van Heerden. “We’re an organ-
isation that believes in supplying world leading
products and we give a lot of thought to the
equipment that we sell to make sure that they of
a good quality and reputable standards.”
More than a century of successThe Bateman Group was founded in 1903
by mechanical engineer Edward L. Bateman.
Bateman had emigrated from the USA to South
Africa to assist local representative Herbert
Ainsworth in selling a range of equipment to
PLANT HIRE - TRANSPORT - OPEN CAST MINING - COAL PROCESSING
TEL: 071 681 9939/12CELL: 071 680 8029FAX: 071 680 [email protected]
Isambane Mining (PTY) Ltd was formed in 2005 and is 100% owend by woman, of which 51% is owned by black women.
The company was primarily involved in the processing of coal for power stations all over the Mpumalanga area. Over the years they have grown into a leading Plant and Earth Moving Equipment Hire company with substantial contracts throughout the Mpumalanga region, consisting of coal processing transport and earth moving.
Isambane Mining (Pty) Ltd has a Zero Tolerance Safety Policy and maintains an excellent safety record with all our people and equipment ensuring that our customers gain maximum productivity without incidents or injury.A
bout
Us
C
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CM
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Mining Advert.pdf 1 8/18/2011 8:36:25 AM
129SEPTEMBER 2011 � The African Business Journal
mines. After Ainsworth’s death in 1919 Bate-
man bought the business and operated it as an
effective and dynamic one-man operation.
More than 55 years later, ELB Equipment
Limited was established when construction
products were introduced under the Bateman
umbrella of companies. This was expanded fur-
ther in 1987 when an autonomous division with
responsibility for earthmoving and construction
equipment was formed.
By the time mining equipment was added to
its range, ELB Equipment had become one of the
most respected names in its industry.
Bateman Project Holdings Limited was sold
to an international consortium of high net-worth
individuals in February 2002, and as part of its
restructuring, the Edward L Bateman Group of
Companies reverted to its former well-estab-
lished trade name of ELB.
Today, the company is a top supplier of en-
gineered products for the infrastructure, mining,
processing and construction industries.
The company is split up into three different
divisions, covering earthmoving equipment,
construction equipment, and mining and quar-
rying equipment.
130 CONSTRUCTION � elB equipment
In line with the group’s name change
in 2002, Bateman Earthmoving Equipment
changed its name to ELB Equipment Ltd. It is
a decentralised division of the ELB Industrial
Equipment Holdings Group listed on the Johan-
nesburg Stock Exchange.
Machine variationAlong with its broad range of products for the
mining, construction and earthmoving equipment
divisions, ELB Equipment is busy preparing for
the South African launch of launch of the Terex
TLB840 Backhoe Loader, set to take place this
October. This ground-breaking machine is one of
the most versatile, innovative and efficient Terex
backhoe loader to date.
Designed around the operator, the TLB840
has been a host of new features aimed at en-
hancing comfort, reducing driver fatigue and
aiding productivity.
Terex Backhoe Loaders global product man-
ager Jon Beckley says: “The new TLB840 is de-
signed to maximise our customers’ productivity
and profitability in these challenging times.”
Key features of the versatile TLB840 include a
curved boom, which provides greater clearance to
reach over obstacles and load closer into trucks,
and its reduced height provides increased trans-
port clearance. The boom has a new ‘Deep Dig’
outerslide extending dipperstick, allowing for the
clamping of objects between bucket and dipper.
An optional thumb attachment is also avail-
able for grab and grip applications. High dipper
and bucket digging forces allow a dig depth to
131SEPTEMBER 2011 � The African Business Journal
5.4 metres while the extending dipper reaches
up to 6.7 metres at ground level.
A bright future ELB Equipment believes in supplying good,
stable product and in maintaining a good,
stable workforce, notes director Desmond
van Heerden.
“We’ve come through a recession without
retrenching a single person, while many of our
competition struggled,” he boasts. “We have
also paid half-year and full-year dividends right
throughout the recession.”
The company’s recent success has led to it
deciding to strengthen its existing footprint and
investing in some of its existing dealers, as well
as some of its own branches.
“We have spent approximately R80 million
on new facilities at our head office in Boksburg,”
remarks van Heerden. “We’ve also spent about
R6 million at our Kimberly branch and R8 million
at our Durban branch, and construction should
finish at our new R26 million facility in Middle-
burg towards the end of this year.”
With its traditional market in South Africa
continuing to perform well, ELB has found itself
venturing into neighbouring countries such as Zim-
babwe, DRC and Namibia, Swaziland and Zambia.
But with its commitment to customer service
of the upmost importance, it would surely be no
surprise for ELB Equipment to soon find itself in
demand even further afield. TAB
www.elB.cO.zA
erBAcOn sMAll plAnT132Tool’s gold
erBAcOn sMAll plAnT132
cOnsTrucTiOn
134 CONSTRUCTION � erbacon Small Plant
Since 1996, erbacon Small Plant has been providing cutting edge equipment for the cream of South africa’s workforce, making tricky jobs a breeze and offering a variety of modern machinery to a country that is rapidly developing.
wHen peOple DescriBe a tough day at work
many claim to have ‘chipped away at the rock
face.’ For Erbacon Small Plant, however, this well-
used figure of speech is actually very accurate.
They have been providing the means to ‘chip
away’, collect, cut, build, blast, saw and seal for
the last 16 years.
Heavy dutyWith the best will in the world, if you’re a miner,
construction wizard, brash builder or rousing re-
pair guy and you don’t have tools you may as well
ditch that utility belt and tuck into those ham and
cheese sandwiches now. Civilisation wasn’t built
on positive vibes alone.
135SEPTEMBER 2011 � The African Business Journal
Fortunately Erbacon supply the most effec-
tive, robust, professional and safe equipment, not
only to the divisions within its parent company—
Erbacon Investment Holdings Ltd.—but also many
major construction outfits throughout South Africa.
The extraordinary array of no-nonsense para-
phernalia is distributed through Erbacon’s seven
branches (including in Durban, Port Elizabeth
and Johannesburg) and its fleet of machines
stretch to well over 6,500, while its abundant
scaffolding weighs in at 2,500 tonnes. The
eclectic range of gadgets includes generators,
compressors and compaction equipment, while
smaller tools and survey equipment are also
readily available. There are five operating divi-
sions within the business—general small plant
hire, compressed air, formwork and scaffolding,
saw cutting and plant sales.
An esteemed member of Contractors Plant
Hire Association, Erbacon’s equipment tackles
a huge variety of jobs, most notably formwork
drafting, coring, joint sealing, application of poly-
urea coatings, small demolition work, concrete
repairs, sandblasting and flooring services. Such
Staffing solutions engineered with tough customers in mind.
Cell: 082 905 6142 Tel: 011 626 3290Mac Muller
www.staffuneed.co.za
We recruit all categories of staff focusing on Power Generation Maintenance & Construction.
Our Vision is to train and supply quality temporary & permanent staff and related support
services.
136 CONSTRUCTION � erbacon Small Plant
a diverse set of offerings ensure that companies
can often complete all their tasks using Erba-
con’s mighty machines (which feature such curi-
ous classics as the Sikalastic 841 ST).
Changing the landscapeThere are a number of projects, for which Er-
bacon has been the main supplier, that have
genuinely made a difference to the community—
cosmetically, functionally and socially. A fine ex-
ample is the ‘City Beautification’ venture in Dur-
ban which, as its name suggests, is concerned
with the aesthetics and preservation of the new
Moses Mabhida Stadium. Erbacon’s equipment
has been instrumental in improving the walk-
ways, sealing joints and transforming the parking
area around the attraction, making it one of the
most pleasing places to visit in the area.
The small plant has also been very busy in
the last few years, with many multi-million Rand
mining projects relying on its facilities, such as
the lucrative and highly successful assignment
137SEPTEMBER 2011 � The African Business Journal
at Eland Mine. It has also been heavily involved
in the construction work at Hatfield Station and
Junction Camp in Johannesburg.
Other impressive ventures include the
R20m water supply development at the Mkhwa-
nazi Reservoir, the R100 million project to build
the sprawling campus at the University of Zu-
luland City in Richard’s Bay and re-engineering
the Durban Container Terminal.
It takes years for a company to build a solid
reputation but Erbacon has carefully used its
equipment to create a formidable business
with solid foundations. As South Africa con-
tinues to look toward a bright and prosperous
future the company is in a prime spot to help
galvanise the country by using reliability, inven-
tiveness, forward thinking and, of course, the
tools of the trade. TAB
www.erBAcOn.cO.zA
MOOlMAn grOupSpearheading South africa’s
property investments
138
MOOlMAn grOupSpearheading South africa’s
property investments
cOnsTrucTiOn
140 CONSTRUCTION � Moolman Group
With a mission to maximize long-term returns for its shareholders through property investment, this South african, family-run company, Moolman Group, is one who symbolizes a modern South africa through its developments. Since 1967, Moolman Group has specialized in property investment, development and management. The company is in touch with the realities of the South african property industry and utilizes its entrepreneurial spirit in all of its varied projects.
MOOlMAn grOup wAs founded in the Limpopo
Province and has evolved over its decades of
experience into an international property de-
velopment enterprise with a diverse portfolio
of projects including corporate, government,
retail and residential. Moolman Group’s com-
pany ethos to “stay humble in times of success
and to stand firm in the face of adversity,” has
remained a guiding principal throughout the
company’s years of experience and expansion.
Project scopeTo date, Moolman Group has been working on
a number of exciting projects. One of its most
noteworthy projects of late is the colossal Mall
of the North. Pieter Lombaard, CEO of Moolman
Group says, “Recently we have been working
141SEPTEMBER 2011 � The African Business Journal
on a few very exciting projects such as the Mall
of the North which is opening on April 14.” This
mall is Polokwane’s largest, most modern mega-
shopping centre. The mall represents the larg-
est commercial building in the province and is
jointly owned and developed by Moolman Group,
Resilient Property Income Fund and Flanagan &
Gerard Development and Investment.
The project scale is sprawling, and benefits
the community in a number of ways. All bricks,
sand and stone supplies that were used in the
Mall of the North have been supplied from local
businesses and the project has created hun-
dreds of jobs for labourers and artisans. The new
mall will have access to a range of retailers in-
cluding a 5,000 square metres Checkers, 5,500
square metres Woolworths, and a 5,000 square
metres Pick ‘n Pay. There will also be the first 3D
Ster Kinekor in the region (a popular African cin-
ema chain) housing approximately 1,000 seats.
Together with Flanagan & Gerard The group
is also working on the Middleburg Mall, which
is set to be a major shopping destination in
Mpumalanga. With plans to open in 2012, the
34,000 square metres shopping centre is per-
fectly situated next to the N4 highway and easily
accessible. The investment of R450 million is a
big project for Moolman Group and the company
foresees a great future for this development.
Another recent venture that Moolman Group
is undertaking is the Game Centre development in
Thohoyandou which is known as one of the stron-
gest retail areas in South Africa. The company web-
site states, “This is because very little decentralisa-
tion of retail facilities occurs, ensuring a strong and
vibrant central business district (CBD).”
The Game Centre is being built up south of
Venda Plaza on one of the last remaining pieces
of vacant land in the area. The development is
about 7,500 square metres.
Moolman Group is currently busy building a
Makro store in Polokwane as well as being in-
volved with three of the latest Makro buildings in
Wonderboom Silver Lake Vaal.
Moolman Group’s other projects include
the Bedworth Centre in Vanderbijlpark also with
Flanagan & Gerard, which was completed in
November 2010, as well as the Lephalale Mall in
Limpopo which will be developed on a 12 hect-
are site in Onverwacht.
Competitive edgeBeing a company that emerged from strong family
ties, Moolman Group works with a philosophy that
highly values integrity and client relations. “As a
family business we promote a family culture,” says
Jannie Moolman. “We administer our own portfolio
and manage all the property ourselves.”
142 CONSTRUCTION � Moolman Group
143SEPTEMBER 2011 � The African Business Journal
Within its entrepreneurial spirit Moolman
notes its small business structure that aids in
a fast turnaround for clients. “We are entrepre-
neurs in a smaller structure so decision making
is very quick,” says Moolman. “We don’t have
these big corporate structures.” Moolman also
notes how flexible the company is with clients
and how much it values its strong staff. “We care
about our staff. We look after them the most we
can. We are small players in the industry but we
are flexible and take opportunities as they come
our way,” he says.
Keeping the business as green as possible is
also something that Moolman Group is always striv-
ing towards. The company adheres to all environ-
mental laws and knows the importance of keeping
up with environmental legislation in its business.
It also works in a number of different ways to keep
its carbon footprint low. “We are quite aware of the
challenges and importance of building green and
we try to use natural light while optimizing electrical
specifications.” Moolman notes how important it is
for the company to design buildings that are energy
efficient as possible. “It’s a very relevant topic at
the moment,” he adds.
Its corporate social responsibility is also some-
thing that the company takes seriously and the
team often gets involved with various charity orga-
nizations. “We like to get involved on the ground.
We recently helped with a school that we saw
struggling and for many years we have donated to a
charity for child welfare in Polokwane,” says Mool-
man. The company actively assists and contributes
to its community in various projects like these.
For the future, Moolman Group plans to con-
tinue its investments in quality properties. “We
want to grow and are now in a position for growth
opportunities. We are a well-established business
and geared up for growth.” With its long-term rela-
tionships with clients, the company has created a
name for itself as a reliable, major South African
property developer. “Our relationships with our ten-
ants and the fact that we deliver what we promise
is key,” says Moolman. With integrity and strong
client relations, the team at Moolman are geared
up for a fulfilling future in South African property
development. TAB
www.MOOlMAngrOup.cO.zA
MOrgADOPlanting the seeds of success
MOrgADOPlanting the seeds of success
145
cOnsTrucTiOn
146 CONSTRUCTION � Morgado
147SEPTEMBER 2011 � The African Business Journal
With its reliable and efficient customer service, Durban-based plant hire specialists Morgado offers more than just a wide range of vehicle and machinery solutions.
As One Of the largest plant hire companies in South Africa, Mor-
gado Plant Hire is able to supply its customers from domestic and
neighbouring markets with a broad and multi-faceted range of
plant vehicles.
148 CONSTRUCTION � Morgado
From articulated dump trucks (ADTs), rollers,
tractors and bulldozers, to excavators, mobile
crushers and tippers, the firm has a comprehen-
sive range of heavy-duty trucks, vehicles and
construction-related machines at its disposal.
While the Durban-based plant hire specialist
and civil construction contractor is known for its
extensive variety of machines, it is also recog-
nised for providing excellent customer service.
In the past three and a half decades, Morgado
has grown to become a leading force in KwaZulu-
Natal’s plant hire, civils contracting and logistics
industry, and on its website proclaims: “We pride
ourselves on providing good back-up and supplying
top-class machinery to our customers.”
The plant hire firm began life in 1975 under
its founder Tony Rodrigues as a one man, one
TLB-sized operation.
His son Luis joined his father in running the
business in 1989 and in 2007 his daughter Neli
joined the firm with specific responsibilities for
the administration of the business.
Rodrigues’ son Luis, a mechanical and civil
engineer, says, “When I joined Morgado, we had
35 TLBs and worked throughout the wider Kwa-
Zulu-Natal area.
“We then ventured into wheeled loaders, exca-
vators and dozers. We diversified into all types of
149SEPTEMBER 2011 � The African Business Journal
construction plant and so the company expanded.
“now our machines are hired throughout South and Southern africa, and we are one of the largest plant hire companies in South africa with more than 220 machines,” he adds. “But we would prefer to be known for the quality of our service and machines rather than for our size.”
Of his father, Tony Rodrigues remarks, “Dad
was a workshop foreman and bonded his house
to buy his first TLB and start the company.
“I used to help him on weekends by repairing
and servicing the plant from our home in Umbilo,
Durban, and the neighbours used to complain
because we would line our machines up along
the pavement.”
The foundations for future successIn 2002, Morgado moved into its current prem-
ises in Glen Anil and has in place a strong foun-
dation throughout the company, which is able to
provide a springboard for future success.
Morgado’s business model consists of five
divisions: civils contracting, plant hire, logistics,
materials handling, and crushing and screening.
150 CONSTRUCTION � Morgado
The civils contracting division has grown from
strength to strength in the past 20 years and
today specialises in bulk earthworks, roads and
surfacing projects, as well as a range of other
construction developments.
From excavators to ADTs, and bulldozers to
hydraulic peckers, Morgado operates more than
220 machines. The plant and equipment division
offers customers support from an in-house work-
shop, which employs more than 40 mechanics,
boiler makers and mechanics assistants.
All of Morgado’s plant operators have been
certified to competently operate equipment
and the company ensures that supporting
documentation is readily available.
Morgado owns and operates 11 low beds ca-
pable of transporting up to 60-tonne loads, and
therefore requires a professional and efficient
logistic division, which it has in place. Thanks in
part to its logistic capabilities the company can
today boast of being the preferred transporter to
several agents and OEMs in South Africa, with
cross-border capabilities that include all south-
ern African countries up to Zambia.
Morgado has been a regular contractor to the
Port Authorities in Durban for several years, in-
volved in loading ships with various commodities
from iron ore and coal, to manganese and copper
151SEPTEMBER 2011 � The African Business Journal
concentrate. The firm’s materials handling divi-
sion ensures this work is carried our efficiently and
successfully with an operation that runs 24 hours a
day, seven days a week, 365 days a year.
The plant employed in this operation includes
20 tonne and larger pay-loaders, as well as special-
ised 20 tonne backactor Straddle Machines that
measure 7.9 metres high.
Finally, the crushing and screening division
looks after Morgado’s three primary jaw crush-
ers, two secondary cone crushers and a tertiary
vertical shaft impact crusher.
Through such equipment, the company is
able to produce crushed stone base and sub-base
materials, aggregates for road surfacing and ready
mix concrete, rip rap, gabion and pitching stone
as well as processing run of mine material for ore
beneficiation.
With such a broad range of large machines
and solutions on offer to its customers, Morgado
is a name that has grown and will continue to
grow with the development of big industry and
the introduction of big construction projects
across the southern tip of Africa. TAB
www.MOrgADO.cO.zA
EQUIPMENT SPARE PARTS AFRICA (PTY) LTD
ESP IS THE LEADING SUPPLIER OF REPLACEMENT PARTS FOR EARTHMOVING MACHINERY, DIESEL ENGINES AND TRUCKS IN SOUTH AFRICA.
XCEPTIONAL QUALITYAll parts supplied by ESP are subject to the strictest quality controls and are covered by the ESP 9-month parts warranty.
AVING MONEYESP’s technology and years of experience are dedicated to a single objective - saving the plant owner money on his machin-ery, truck and engine repairs.
ARTS AVAILABILITYComputer linked warehouses and well trained staff ensure a high level of parts availability and an efficient service to ESP’s customers.
VegtechpeOple in glAss HOuses
152
VegtechpeOple in glAss HOuses
MAnAgeMenT & OperATiOns
154 MANAGEMENT & OPERATIONS � People in glass houses
In the current climate growing vegetables has never been so fashionable—fortunately Vegtech build the best greenhouses in africa, so everyone can make a statement or, if the need takes them, a cucumber.
prODucing A cOrnucOpiA of vegetables has grown
in popularity over the last two decades. Whether it
be for environmental reasons, a business or simply
in order to show off to the neighbours, people are
increasingly keen to cultivate their crops.
The seed of Vegtech was carefully planted at the
very dawn of these trends, allowing the company to
blossom and flourish, in tandem with the popularity
of greenhouses and home-grown produce.
Vegtech has grown considerably over the last
decade, as companies respond to the various
international food crises and water shortages. It
provides the opportunity to tackle these issues
positively, using the finest materials and most
cutting-edge technology.
No pane, no gainThe company was formed in the late eighties and
originally traded by importing Israeli agricultural tech-
nology through consultants in the northern part of
Africa. Later it began farming operations and quickly
established the need to update existing equipment,
155SEPTEMBER 2011 � The African Business Journal
while also establishing that other farms needed tech-
nology in order for their farms to perform better.
At this point the company realised they were
on to a winner and settled into building structures
for food production. As well as greenhouses it also
sells all the hardware needed to grow undercover,
offering systems like net houses and tunnels.
The company currently has exciting projects in
Botswana, Abu Dhabi, Zimbabwe and Angola, while
60 per cent of its trade remains in South Africa.
Fertile timesIn South Africa Vegtech can boast 20 years of
experience, during which they have successfully
completed 400 projects. Its vast and versatile
range of technologies enables it to supply ac-
cording to different environments, size and prod-
uct requirements.
The main emphasis for Vegtech always has, and
always will be quality; creating desirable products
which benefit from low maintenance and a profes-
sional finish that will last. Indeed, a great many of
their original greenhouses, built more than 20 years
ago, are still functioning superbly to this day.
Deon Van Rooyen explained that the com-
pany’s refusal to cut corners means that they
will always produce formidable structures. “We
believe in supplying a greenhouse that is solid
156 MANAGEMENT & OPERATIONS � People in glass houses
157SEPTEMBER 2011 � The African Business Journal
and fully operational. We have done a lot of fine
tuning in terms of how the components connect
together and also insulate our structures against
the sun, using a revolutionary tape,” he said
“There are small things that no one else does,
for instance, all our nuts and bolts are the same as
those used in the motor manufacturing industry.
You know that in high wind and storm conditions
your green house will remain standing!” he added.
Additionally, the plastic coverings it uses are
from a European manufacturer which incorpo-
rates the best technology in the world, helping to
create exactly the required climate inside.
These advances ensure there is much less
need to control insects and use fertilisers. This
means less chemicals, so the produce tastes bet-
ter. Meanwhile, there are a special range of nets to
put on openings so that customers can maintain a
pest-free greenhouse. Above all, the technology cre-
ates bigger, healthier and more abundant crops.
Big ideasThe company currently employs over 200 sub-
contractors and 35 full-time employees, many of
whom have been applying their craftsmanship to
Vegtech projects since the very beginning.
There is no limit to the size of greenhouse it can
build, but they often use their expertise to determine
the scale of the structure according to climate.
Van Rooyen explains, “When we go to a place
with a very hot climate we prefer to keep the
structure smaller, whereas a colder atmosphere
is more suitable for bigger houses. Climate also
dictates what type of structure we erect. Over
the last 20 years we have established precisely
which design works best in each area.”
Most of Vegtech’s competitors come from
Europe, and although some make similar struc-
tures, this is where the similarity ends. Africa has
a distinct set of meteorological and atmospheric
considerations that are markedly different. When
you put a greenhouse up in Europe it is all about
how to preserve heat, in Africa the central objective
is to get rid of it. This gives Vegtech a unique pool of
knowledge that gives it the edge over rivals.
In the next five years the company will con-
tinue to focus on the lucrative African Market as
well as the Middle East and, eventually, India.
As Vegtech continues to thrive, on its immov-
able bedrock of quality, it is determined to keep
utilising the unrivalled experience and knowl-
edge that has made it one of the indisputable
leaders in a very exclusive field. No wonder con-
fidence, like the vegetables in its greenhouses,
keeps growing. TAB
www.VegTecH.cO.zA
sTrATegy, knOwleDge, neTwOrks AnD successhow Global Pacific & Partners continues to outperform with unique industry business model and advisory practice
158
sTrATegy, knOwleDge, neTwOrks AnD successhow Global Pacific & Partners continues to outperform with unique industry business model and advisory practice
MAnAgeMenT & OperATiOns
160 MANAGEMENT & OPERATIONS � Global Pacific & Partners
There aren’t many advisory firms in the upstream oil and gas industry that can match Global Pacific & Partners’ stature or its business model: with three decades in the world upstream, having played host to over 5,000 speakers and 30,000 delegates across africa, asia, latin america, Mideast and global gatherings. In fact, there aren’t any with the company’s on-ground and africa-wide experience either.
“I believe that our aim has always been to
deliver the best quality and this is something we
have consistently achieved and for which we are
recognised—in our worldwide events, unique strat-
egy briefings and in our advisory practise,” deputy
chief executive Babette van Gessel reflects.
“Over the years we have built a global an-
nual portfolio of high-level conferences which
are landmark meetings, running now for over two
decades. We have also always sought to be per-
sonally and directly involved, and to be innovative
and ahead of the game and have been pioneers
in several arenas.”
Take their global e-Conference facilities for
online presentation access; since early 2000 this
161SEPTEMBER 2011 � The African Business Journal
suite of online presentation access has oper-
ated unrivalled and proved very popular. Or the
group’s global daily and weekly oil and gas indus-
try newsletters sent to more than 40,000 recipi-
ents, which cover all regions, key countries and
specialised themes and focuses.
“No-one matches the model for our world-
wide strategy briefings done on Africa, Asia, Latin
America and MidEast plus on the world oil future
in the manner we have conducted them, and we
have hosted over 3,500 clients in these briefings
over the years,” van Gessel says.
“They provide a unique blend of upfront in-
sight and networking pre-event with high-impact
and intensive conferencing following, and are
based on rich content.”
Keen to gain more perspective on quite how
wide-ranging, well-targeted and complimentary
Global Pacific & Partners’ range of services is,
TABJ met with van Gessel to hear about how, in
her own words, the group’s huge communica-
tions strategy operates. It goes without saying
that those who facilitate knowledge-sharing,
networking and information access possess
some of the most vital tools any player in any
industry relies on—but there aren’t many that can
stand alongside their company when it comes to
communicating petroleum, energy and strategy
insight from Africa and beyond.
TABJ: We last spoke in July 2010, and looked
closely at the events, research and advisory
sides of your work today. What might you define
to be key focuses at the moment from an events
perspective, perhaps upcoming events such as
the 21st World Upstream Conference? Please tell
us more about what is coming up and why they
are globally significant meets.
Bg: Yes, we have some globally significant events
still taking place this year: our 21st World Up-
stream will be hosted in Geneva from 20-21
September and is one that looks around the
global industry at large with 37 top-level speak-
ers, so setting it apart as a truly global manage-
ment meeting plus with an in-depth 10th World
Oil Future Strategy Briefing taking place just prior.
Our 16th Asia Oil Week in Singapore which tracks
the oil, gas and LNG game in the region, company
strategies and exploration portfolios, follows short-
ly after on 29-30 September and this is allied with
our 20th Asia Petroleum Strategy Briefing, which
is the longest running briefing on Asia’s explora-
tion industry, and really even worldwide. We have
been active in Asia since the early 1980s, and
Dr Duncan Clarke (Chairman of Global Pacific
& Partners) has had extensive experience and
presence in the region, so this track record has
helped cement our efforts there. Afterwards from
162 MANAGEMENT & OPERATIONS � Global Pacific & Partners
31 October-4 November in Cape Town we host the
18th Africa Oil Week which is our flagship event,
attracting typically over 800 participants from
around the world, from Monday through Friday. It
includes the well-known 13th Scramble for Africa
Strategy Briefing, plus has 75 speakers at the
Africa Upstream and Africa Independents Forum,
and with an exhibition. It’s the crème de la crème
in and on Africa there each year, and really is an
important occasion for the industry and Africa’s
deal flow, acreage marketing and transactions.
TABJ: In your advisory practice—perhaps also
strategy briefings—what are the pertinent topics
reoccurring today? Within this, how is Global Pa-
cific & Partners working to assist its client base
in tackling these issues?
Bg: On Advisory we only focus on strategy. It’s
been our metier for over three decades. Man-
dates are only accepted where we know we can
deliver accordingly, and then only on client re-
quest. We do not pitch for business. Presently
we are acting for the interests of a newly-listed
AIM exploration player from Africa, with strategy
and advice on assets and growth options, done
for the CEO and Board. We are close to finalisa-
tion of our mandate for the African Development
Bank on oil and gas strategy and investments,
to bring them further into Africa’s upstream and
grow their asset portfolio in greater measure
across the industry, and build linkages and deal
flow with private companies and related develop-
ment finance institutions. New Zealand has re-
tained us to assist in solicitation of key corporate
oil investors to take up exploration acreage there,
and we shall conduct some meetings in early Oc-
tober in Wellington for them on this matter. They
have some of the best fiscal terms, operating
conditions and unexplored frontiers worldwide.
Earlier this year we provided advisory insights for
GE Africa on economic issues and potential in
Sub-Saharan Africa, and likewise for Engen, one
of Africa’s leading downstream players. In the
case of another private company we have been
assisting them to get a grip on the oil/gas pipe-
line markets in Africa and build relationships to
the key state oil players across the Sub-Saharan
business. So our Advisory practice is really a mix
of circumstance, meeting specific client needs,
shaping business networks, while assisting with
understanding of world and African oil and gas
industry markets and issues.
TABJ: As part of your mission, I see you have a
hand in networking too. Let’s look at the clubs and
networks that you partner with, and any of them
that are particularly significant in terms of news
163SEPTEMBER 2011 � The African Business Journal
agenda and furthering insights/reshaping views
for African upstream-related industries today.
Bg: There can be no doubt the our PetroAfrica-
nus Club, which was started in 2004 and has
attracted over 3,000 attendees at its dinners so
far, held in London and across Africa (Cape Town,
Nairobi, Lagos, Marrakech, Tunis, Johannesburg)
has been of great significance to Africa’s deal
flow and relationships between companies and
governments and national oil companies. By end
of this year we will have hosted 42 dinners, each
with a leading guest speaker. It’s a special forum
that cements many within our networks around
the world, providing intimate business connec-
tions and continuity which has equally been
much appreciated by the Club’s Patron and Cor-
porate Members. Our African Institute of Petro-
leum (initiated 1996 and re-launched 2009) has
made its mark, with over 500 individual mem-
bers, in shaping understanding about the eco-
nomics of the oil game in Africa. Governments
and industry too often narrowly focus on fiscal
“state take” in relation to acreage and invest-
ments but this is only one of the economic as-
pects of corporate portfolio impact. Much wider
and larger direct and indirect economic benefits
flow outside of fiscal revenues, which should be
ENCYG A F O N RA C PI RR OF MA O
H TT IOU NO S OF
PE
T
N R
O OI LT EAT UI MO L EP XX PE LD ON RA ANOI T
PETROLEUM AGENCY SA
PETROLEUM AGENCY SA - South Africa’s Oil & Gas Regulator
·and in unexplored deep water frontier regions.
·conventional oil and gas exploration as well as for unconventional gas in the Karoo Basin.
· South Africa offers an investor-friendly and stable political
environment, competitive fiscal and commercial terms and an excellent infrastructure.
Exploration opportunities are available offshore over shelf areas
The onshore Algoa and Karoo basins present opportunities for
Petroleum Agency SA is a government owned organisation designated in terms of the Mineral and Petroleum Resources Development Act. The Agency promotes exploration for onshore and offshore oil and gas resources, regulates exploration and production activities and is the custodian of the national petroleum database. Sustainable and optimal development of South Africa's indigenous oil and gas resources on behalf of our country's people is of utmost importance and this is reaffirmed through our vision of “a viable sustainable and responsible upstream industry in South Africa”.
Petroleum Agency SA, based in Bellville, Cape Town, is responsible for the promotion and regulation of exploration and exploitation of oil and gas (petroleum) resources within the Republic (onshore and offshore) on behalf of government in terms of the Mineral and Petroleum Resources Development Act.
Contact us to find out aboutOnshore or offshore exploration opportunities for oil and gas in South Africa
Permits and rights for reconnaissance, exploration or productionAvailability of oil and gas related geotechnical data
Phone: +27 21 938 3500email: [email protected]
www.petroleumagencysa.com
164 MANAGEMENT & OPERATIONS � Global Pacific & Partners
accounted for in any calculus. Part of the growth
in resource nationalism and the rising tax inter-
est of the state in Africa have arisen as a result
of non-appreciation of these facts. Without full-
scale economic evaluation of this kind, Africa will
be taking the path to less competitive outcomes
in this globally competitive market for exploration
investment. Our clubs and networks have been
fairly instrumental in building bridges between all
parties and stimulating relevant discussions.
TABJ: On a daily, weekly, monthly and yearly ba-
sis, you have all sorts of tools to bring members
together, impart vital news and provide insight on
current affairs related to industry. Perhaps you
can tell us a bit about what it means to facilitate
forward-thinking dialogue both between mem-
bers, yourselves and wider industry, and how
Global Pacific & Partners effectively does that?
Bg: Our tools of direct communication include
around 30 newsletters that provide breaking
oil/gas news daily and weekly. Our Conference
events with quality speakers and agenda help
shape the corporate landscapes and interfaces
with governments. The Strategy Briefings impart
world-class strategic insights and knowledge to
over 600 clients each year focused on world-
wide competitors, economics, strategy, acreage,
industry trends, and risks/threats. We also un-
dertake dedicated road-shows for governments
and licensing agencies worldwide, and have
done so in Africa, Asia, Europe and elsewhere,
while last year we did so for Colombia and Ga-
bon. There is networking built into all of these
activities. We hope that our clients are enriched
by these engagements, and for us it’s a continuing
learning experience: one can never know enough.
TABJ: With both yourself and Duncan Clarke at
165SEPTEMBER 2011 � The African Business Journal
the helm, Global Pacific & Partners has certainly
amassed many achievements since its found-
ing. Where will the firm go next? What are your
company-centric plans and goals, from adding
members and targeting other niches of industry to
expanding on what is already a highly diverse and
comprehensive communications structure?
Bg: Our first aim is to survive. Turbulent waters
come and go. Success is a bonus, if it comes.
As we are a small firm, our main interests is to
raise the quality on all our annual platforms, and
in that way seek to grow the delegate flow and
commerciality too of course, as well as sustain
our advisory mandates (which by necessity are
episodic). Beyond oil, we have a long track re-
cord in Africa’s economics and this side of our
knowledge remains active for advisory mandates
too. Actually, Duncan Clarke’s new book (Africa’s
Future: Darkness to Destiny) will be published in
February 2012 by Profile Books (London). It cov-
ers the key drivers on economic growth impacting
the economies from the past and present, into
the future. It is a rethink on Africa, unlike much
of the views you currently hear. But in general we
prefer to “stick to our knitting”. Even so, we may
return next year to one arena on which we under-
took over one decade of significant conferencing:
on Africa’s downstream, which we understand
well. We will soon also reshape our model for the
newsletters, to convert most to commercial ven-
tures, so providing gratis news-flow on both the
world and Africa, but also combined with special-
ised paid services for those that want and need
our highly-focused insights.
TABJ: For companies, noteworthy individuals
and other industry interested parties who want
to know more about your work, what do you
advise? They can of course visit www.petro21.
com, but is there anything else they ought to be
looking out for from you?
Bg: Well, they can ask to be placed on our man-
agement database so as to receive notices on
all our events, and they can receive gratis our
Newsletters, for updates on our Programs as well
as on developments in the industry at large - just
send an email to [email protected]. As our Advi-
sory practice is like a boutique, interested parties
can contact us directly for this also. TAB
TABJ thanks van Gessel for her time and
input during and after the interview
www.peTrO21.cOM
Msp DeVelOpMenTBuilding a community
166
Msp DeVelOpMenTBuilding a community
MAnAgeMenT & OperATiOns
168 MANAGEMENT & OPERATIONS � MSP Development
Society matters are just as important as material procurement for MSP Developments. The Western Cape property developer explains how the art of prioritising does have its rewards.
Msp DeVelOpMenTs is dedicated to providing
home owners with everything they need from the
design of their homes, to their construction, to
their delivery and beyond.
The company designs all of its units along
with the infrastructural elements of each of its
estates, while bringing what MSP Developments
managing director John Coetzee describes as
“affordability to the people”.
“Everything cost is worked out properly,”
notes Coetzee. “There are no massive profits any-
more—you cover your overheads and you ensure
your profits give you a good chunk of the market.
“We manage the whole process to keep the
price of procurement intact and make it affordable
for the new generation of buyers coming through.”
Launched as MSP Developments in May
2002, the firm has experienced tremendous
growth and has brought some of South Africa’s
largest residential projects to the retail market.
The group is split into eight divisions, each
one coving a specific area of the market from
169SEPTEMBER 2011 � The African Business Journal
marketing and sales, to customer finance, rent-
als and construction.
But despite its ambitious and competi-
tive nature, as well as its large size, MSP rarely
moves into territories outside its current market
in Western Cape.
“We stay inside our radius as we can manage
that logistically every single day,” says Coetzee.
The acronym in the company’s name stands for
‘multi-spectrum projects’ and represents the broad
range of work the firm carries out across the resi-
dential, commercial and industrial sectors.
The company is heavily branded and as a
result has a strong presence in the mind of locals
in the region, notes Coetzee.
“Everyone is basically aware of MSP Develop-
ments,” he says. “With old established companies
they are able to explain themselves over a number
of years, but with MSP we had to put the name out
into the market and really brand it. MSP is every-
where thanks to the marketing skills of our founder
and managing director Riaan Roos and it is a name
recognised across in South Africa.”
The company employs more than 165 people
and has continued to grow in the past 30 months
despite the sluggish state of the economy.
“We did this by ensuring the same level of sales
momentum,” says Coetzee. “When everyone was
170 MANAGEMENT & OPERATIONS � MSP Development
171SEPTEMBER 2011 � The African Business Journal
172 MANAGEMENT & OPERATIONS � MSP Development
heading downwards we were expanding.
“We are working on several developments in-
cluding the large Buh-Rein Estate, which comprises
3,511 residential units, plus commercial units.
“We’re also building 3,000 units at Blue Downs
and at Sitari Fields Golf Estate we’ve purchased
another 192 hectares for another 3,200 units.”
Feeding the affordable housing marketSouth Africa has a backlog in affordable housing
market of more than 500,000 homes and the topic
is one of the most discussed, according to Coetzee.
“If you try to play catch up with this backlog,
you would never get there,” he remarks. “It would
take more than 10 years to get there, and by
that time it’s will have simply continued to move
forward, and therefore it takes a lot of planning,
not only on our part as the developers, but also
for the financial institutions.”
With financial institutions lacking confidence
due to the recession MSP has set up its own
vetting department, thereby ensuring it only for-
wards good customer application onto the banks.
Coetzee says that the effort of the whole
MSP team, along with the firm’s comprehensive
approach to business, has enabled the firm to
achieve such impressive growth and sells on
average close to 80 units per month.
173SEPTEMBER 2011 � The African Business Journal
“If look at 2009 when the recession was
heading towards its bottom end we still delivered
more than 400 units,” he notes. “In 2010 this fig-
ure rose to 490 and this year we should hit 600
units for the year.”
The company has a 60-seater auditorium,
which it often for educational and training pur-
poses for staff, investors and potential buyers.
“It’s important for our buyers to understand
what they have signed for, what they’ve bought
and what affordability means,” says Coetzee.
The company provides educational support to
a selection of community leader supplying them
some of its buyers with an education lectures.
“When people buy a house, they may not
always understand the water costs, the taxes and
so on,” remarks Coetzee. “The market changes so
much, but as the buyer gains more educated they
look for better products and value for money.”
Creating a community MSP Developments plans ahead, which is has to
do in order to stay ahead of the demands of the
marketplace.
“We work on at least a five-year plan up-
front—especially when it comes to buying land,”
says Coetzee. “There are many markets to cater
for and every site we design is unique.
“We do not do a copy and paste job on any of
our developments, and once in place the profes-
sional team constructing the development does
not change, because you risk losing focus.
“We look physically at developments to make
sure they don’t prohibit the people from living
there as every square metre is important, and
this includes the security detail.”
At Buh-Rein Estate, MSP has placed 186
cameras across the development, which also
features a security response team and 24/7 se-
curity guards on the facility, providing a high level
of protection for residents.
Like each of the company’s other develop-
ments Bur Rein is, in effect, a suburb. The develop-
ment has everything a community requires, includ-
ing schools, churches, shopping centres, jogging
tracks, sports fields—everything a community needs
to live, play and work inside the development.
“You get good developers and bad develop-
ers and we pride ourselves as a good developer
and on good design,” notes Coetzee.
In 2010, MSP won a South African Planning
Institute (SAPI) award for its Buh-Rein Estate de-
velopment, with so much care and attention paid
to its developments, there can be no doubt that
the company will feature prominently at the next
SAPI awards in 2012. TAB
www.MspD.cO.zA
luBriTeneGreased lightening174
luBriTeneGreased lightening
MAnufAcTuring
176 MANUFACTURING � lubritene
177SEPTEMBER 2011 � The African Business Journal
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178 MANUFACTURING � lubritene
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179SEPTEMBER 2011 � The African Business Journal
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180 MANUFACTURING � lubritene
THe luBricAnT speciAlisT Lubritene is playing
an important role in the development of many
industries across Africa.
Noted for its brand of high-performance
specialised lubricants, the company prides itself
on being able to provide heavy industry with be-
spoke solutions.
Whether it is for drilling, commercial applica-
tions, or open-pit mining equipment, the firm will
no doubt have a high-performance grease, com-
pound or oil to suit the needs of its customers.
RebornLubritene started life as an importer of high-per-
formance lubricants and in 1996 began to manu-
facture its own high-performance products.
Lubritene Marketing Director Tiaan Oosthui-
zen says, “During this time it became expensive
to import these lubricants, so we decided to
manufacture ourselves. We were manufacturing
some products already, so it was an easy change
to go ahead.
“We then brought out our own brand and
marketed it into the mining industry.”
On the challenge of change, Oosthuizen says
it was a “daunting” experience, but notes that the
company has been performing well ever since.
“Our biggest challenge was in our manu-
facturing capability in that we had to change or
upgrade,” he remarks. “We had one grease plant
from which we made 50 different products, so we
had to change the whole manufacturing set up.
“We installed new grease plants, new blend-
ing plants and specialised plants for open gear
products, cam compounds and similar products.”
The company streamlined its manufacturing
capacity at the turn of the millennium and has
been working at full capacity ever since.
Most of Lubritene’s products are developed
due to problems in the field experienced by its
customers on their applications; but as a special-
181SEPTEMBER 2011 � The African Business Journal
ised company Oosthuizen says it is forced to rely
on its customers passing on the message.
“We are not a major international fuel com-
pany who put millions towards their marketing
budgets. All our products are mainly sold on word
of mouth and in-field performance,” he remarks.
Service before salesThe company employs close to 100 employees and
is expecting sales to increase in a steady fashion.
“We’re very service intensive and our sales
team consists of just six people, whereas our
back-up service team consists of 30 people,”
says Oosthuizen. “These employees travel
all over, visiting client sites to check on their
machines and ensure the correct utilization of
our lubricants.
“They check on consumption, work out rec-
ommendations and propose new and better ways
of applying the lubricants to the component that
requires lubrication.”
Oosthuizen says that it is this attention to
detail and service that forms a large part of
Lubritene’s success.
The company’s research teams work to
optimise products to suit the customer’s require-
ments, using science techniques such as vibra-
tion analysis and temperature analysis to ensure
the lubricant is getting into the places it should.
“We make sure it is cost effective,” notes
Oosthuizen. “We have found you can use general
purpose grease or you can use our flagship prod-
uct, and ours will still be more cost effective even
if our product is four times as expensive.”
The company has in place a research and
development laboratory as well as a quality
control laboratory.
Lubritene also offers a range of low-con-
sumption products, including some that are bio
degradable, as it attempts to become more envi-
ronmentally friendly with its products.
182 MANUFACTURING � lubritene
“We have sold a few of these products into the mining industry and we have also developed a drilling lubricant for exploration drilling that will not contaminate underground water supplies, which has been approved by the rSa water board,” explains oosthuizen.
“There are certain applications where you do
need to have to environmental considerations,
and most of the time we will have your product to
suit your application,” he adds.
Beyond the continentBased in South Africa, the company’s growth
since 1996 has led it to venture out of the coun-
try, into the wider continent and beyond.
“At the moment we have agents in Ghana,
Zambia, Botswana and Zimbabwe,” notes Oost-
huizen. “We talking to people in Angola, and
there are people in Tanzania using our product.”
The company has two outlets in Australia and
also exports some of its products to China.
“We deal through an agent in China and
ship the product to Hong Kong, so from our
side it is pretty low key,” says Oosthuizen. “We
183SEPTEMBER 2011 � The African Business Journal
have been in Australia for about six years with
our outlets in Perth and in Singleton, so we’re
covered on both coasts.”
With a broad range of clients and market, the
company has survived over the past years and
overcame the pressures of recession through an
aggressive sales tactic.
“We made a major push on the sales side
to ensure we survived,” remarks Oosthuizen.
“During our toughest year in 2008 we only grow
by two per cent, but in the past three years we
have grown on average between 15 per cent
and 20 per cent, basically because of this major
sales push.”
Lubritene may not be a major international
oil company, but thanks to the cost effective
nature of its high-performance products and high
service levels, many of its customers view it as a
vital and valuable partner. TAB
www.luBriTene.cO.zA
keep iT reel184
Cotton King
MAnufAcTuring
Cotton King
186 MANUFACTURING � Cotton King
It’s refreshing when a company focuses solely on what it does best. In Cotton King’s case, the name speaks for itself and, naturally, it won’t lose its thread.
187SEPTEMBER 2011 � The African Business Journal
188 MANUFACTURING � Cotton King
THere Are Very few needs in life that apply to
every single member of the human race. Apart
from the obvious examples like water, bread,
love, DVD player and, red wine, there is another
item that most people simply wouldn’t be able to
function without. Cotton. A world without cotton,
frankly, does not bear thinking about.
Spinning a yarnCotton King has been, in the most literal sense,
part of South Africa’s fabric for many years. Its
mission, from day one, has been to manufacture
and market the best quality cotton products,
appealing to a wide range of customers. Indeed,
these affordable and essential items have also
become available throughout the rest of the Afri-
can continent and across the globe.
Since 1998 the company has experienced
rapid growth, resulting in an expansion of prod-
ucts and, as high streets become more extensive
189SEPTEMBER 2011 � The African Business Journal
and the demand for convenient cotton utilities
increases, there has been a steady rise in Cotton
King’s productivity.
It is Cotton King’s policy to deliver cutting
edge training, while also recruiting the most tal-
ented and experienced craftspeople, capable of
reaching the high standards established by the
company over the last decade. Every employee
recognises the responsibility to create desir-
able items for a very demanding and constantly
evolving market. Effectiveness and efficiency
are constantly monitored, enabling the work-
force to manage production and guarantee that
the supply line remains in tune with targets.
This is further improved by incorporating new
technology, ensuring maximum output.
The range of products offered by Cotton King is
supplied to both the local and international markets
and retailers include pharmaceutical companies,
veterinary services, supermarket chain stores,
government departments and private hospitals.
Factory settingsThe initial process at Cotton King’s factories
involves the cleaning and bleaching of high-
quality cotton comber, sourced from reputable
The Lenzing Group benefits from more than seven decades of experience. The unique combination of consistent customer orienta-
tion with leadership in quality and innovation is the foundation for our Leading Fiber Solutions.
With fibers made from the renewable resource wood, Lenzing fully meets the requirements of the market: Consumers increasingly
care about the environment, whilst continuing to enjoy all the convenience they are used to. This development favours the demand
for Lenzing Viscose® and TENCEL®.
Leading Fiber Solutions
www.lenzing.com
Lenzing cellulose fibers set global benchmarks.
190 MANUFACTURING � Cotton King
spinning mills nationally and internationally.
‘Rolling’ and ‘balling’ of products during this
process means materials from different mills
merge and become indistinguishable. State-of-the-
art equipment ensures the final cotton product
from this stage is the safest available.
Cotton King remains the exclusive manufac-
turer of cotton buds—both swabs and Q-tips—in
South Africa. These high performance buds are
supplied to the market under leading brand
names and many millions are used every day for
small but vital jobs like removing a troublesome
eyelash, cleaning a wound or restoring ears to
their original condition. Curiously, cotton buds
are one of those few products that mankind
would struggle to do without. Although they are
simple items, the advance in machinery over
the years has made Cotton King’s modern buds
the best they have ever produced.
The company also supplies cosmetic facial
pads to major brands for sale in supermarkets,
pharmacies and convenience stores around the
African continent. In addition, the Cotton King
manufactures indispensible favourites such as
cotton wool rolls, cotton wool balls, beauty coils,
bleached cotton, non-absorbent cotton wool
Denis Gourley Packaging a 100% privately owned enterprise and is a prominent supplier of a wide spectrum of packaging materials to the South African market via a network of loyal distributors and end users.
Denis Gourley Packaging has grown leaps and bounds since inception due to its commitment to superior quality, superior service, outstanding value, innovation and unblemished loyalty.
tel +27 (0)31-569 1344 | fax +27 (0)31-569 1347 | [email protected] | www.denisgourleypackaging.co.za
191SEPTEMBER 2011 � The African Business Journal
and pleated cotton wool. If you’re using a cotton
based product for beauty, cleanliness or cosmet-
ics in South Africa it is 99 per cent certain that it
came from the hallowed Cotton King factories.
Already crowned as the undisputed monarch
of cotton, the company is still growing every day
and there is no doubt that its place on the throne
is guaranteed for many years to come. TAB
www.cOTTOnking.cO.zA
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BellzOne192
Mining
BellzOne Iron men
194 MINING � Bellzone
It’s not work for the faint-hearted but Bellzone has iron-ore exploration in its blood and keeps breathing new life into the industry with a potent combination of traditional knowledge, reliable systems and space-age wizardry.
195SEPTEMBER 2011 � The African Business Journal
196 MINING � Bellzone
THere is An ancient saying in mining and, roughly
translated, it goes something like this. ‘God’s
earth will yield willingly, provided you are willing
to put in the work’. It is this philosophy, along
with modern practices and considerable pa-
tience that means Bellzone will stay at the top
for many years to come. It’s just as well—they’ve
meticulously planned every step of the next de-
cade and beyond.
The drilling fieldsBellzone Mining Plc—an exploration and re-
source development—was founded by Nik Zuks
only three years ago, but already it has some
big ambitions, which it is determined to realise.
The company has already secured iron ore,
nickel and copper permits in the Republic of
Guinea, West Africa and these credentials have
helped to guide the company’s early fortunes,
197SEPTEMBER 2011 � The African Business Journal
as they establish the most lucrative areas for
its operations.
At the moment it is involved with the vital first
phase in Forécariah, with initial production due
for the first quarter of 2012. It has jointly funded
the venture, which involves carrying out acceler-
ated investigative activity, 30 and 80 kames from
the Guinea coast. Projections suggest that there
will be a production rate of three to four mtpa of
oxide ore, soaring to a rate of 10 mtpa in 2013.
In addition the company’s promising project
at the Kalia Mine is due to produce 20 million
tonnes of iron-ore per annum in 2014, expanding
to a capacity of a whopping 50 million tons per
annum in 2018. Drilling results and internal esti-
mates indicate that the project has the potential
to host more than 10 billion tonnes of magnetite
and two billion tonnes of oxide. The massive
quantities also make the fledgling company any
extremely good prospect for investment, espe-
cially at these early stages.
Chief Financial Officer Terry Larkan explains
the impressive figures: “We have a 50 per cent
commitment to the current mission at Forécari-
ah, which has a total capital expenditure of $208
million. Our Kalia project will see us committing
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198 MINING � Bellzone
an even greater capital expenditure programme
of $2 billion.”
Another massive investment, which com-
mences now, and runs through to 2018, will
commit in excess of $3 billion to construct a
revolutionary, commercially operated railway and
port in Guinea for the export of bulk commodities
such as iron ore. The facility will transform the
lives of thousands in the area.
ScannersRecently, the company has completed a highly
sophisticated mapping and surface sampling
programme, identifying prospective nickel and
copper projects. An aerial survey is also currently
being conducted to further define areas for a tar-
geted drilling programme. These techniques will
eradicate the time consuming practice of drilling
at random, or on a hunch. By carryout research
thoroughly and reducing risk the yields will also
be significantly higher.
Further afield, Bellzone has acquired the
rights to buy 70 per cent of whale from Compag-
nie Miniere de L’Ouest Africain in South Africa.
It is undertaking geological studies on the tene-
ments which could be iron ore rich.
199SEPTEMBER 2011 � The African Business Journal
200 MINING � Bellzone
Larkan reflects that although they are a very
young company, an adventurous approach will
pay dividends. “We have not been around long,
but have proved that our strategies for structur-
ing, engagement with community, environmen-
tal considerations and a safe working ethos
have formed the company culture and proved it
has very solid foundations.”
“There is a real sense of pride combined with
huge excitement as we progress towards our tar-
gets. We have worked very hard and the next ten
years will be the most important in the life cycle
of the company,” he added
Patriotic personnelBellzone is proudly Africa centric. The majority of
the workforce—which has ballooned from three to
200 in less than 36 months—and all assets are
based in Africa. As the company grows so will its
presence and the aim is to gain status as one of
the top iron-ore outfits in Africa.
The entire leadership team has extensive
experience of mining all over the continent and
201SEPTEMBER 2011 � The African Business Journal
a comprehensive understanding of the unique
challenges, opportunities and advantages in
all conditions within the region. The melting pot
of talent is another example of the company’s
determination to be prepared for every eventual-
ity by using the finest manpower, technology and
knowledge in the industry.
As well as the deals that are already on the
table, the team are constantly on the lookout for
further projects throughout Africa and over the
next few years will provide the foundations for the
next half century.
When billions come into the equation, whether
it is dollars or tonnes, it is surely proof that young
companies can think big too. Naturally, Bellzone
are in it for the long haul—quite literally. TAB
www.BellzOne.cOM.Au
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