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The

AfricAn Business Journal


Business and culture
african women in business
arts & entertainment
out of africa - Movies
company Focus
Tiger Milling Company
auGuST 2011 Volume 2 Issue 8 www.tabj.co.za
IN THIS ISSUE
Fair
trade
Changing the future of Africa
2 SECTION Title
- INFORMATIVE WORKSHOP SESSIONS
- NETWORKING OPPORTUNITIES
- AN EDUCATIONAL AGENDA
- CASE STUDIES AND BEST PRACTICES
WWW.ITINFRASTRUCTURE.CO.ZA | CAPE TOWN | 18 - 19 AUGUST
WWW.KINETICEVENTS.NET
INFO@KINETICEVENTS.NET
+27 21 555 0866
IT INFRASTRUCTURE SUMMIT
OPENING ADDRESS
Mrs. GNM Pandor, MP
Minister, Science &
Technology
Te ITI Summit welcomes all Senior IT Leaders, IT
Infrastructure Managers and CIOs to join us for a
two day event that will address how an innovative
and stable IT Infrastructure can drastically reduce
costs and improve business efciency

eDiTOrs note
HellO everyBODy,
Youll notice that the profle picture above
has been invaded by a gentleman with
whom you are most probably unfamiliar.
Rest assured, it is all above board; the man
in question is me, John Pinchingproud new
editor of The African Business Journal.
This month has been my frst full issue
and inevitably you will notice a slightly
different style, which I hope you will fnd
interesting, informative and entertaining!
The mag has got the usual aperitif
of business news, followed by stories of
companies making an impact in Africa.
Indeed, as several global markets show signs
of recovery, its encouraging to see businesses
are starting to get excited again. This edition
has good vibrations from the mining, aviation,
food and property industries, while a welcome
call from the wild comes courtesy of South
African National Parks.
In addition there will be a refreshed selection
of features, hopefully suiting a wide range of
tastes. These include a jaunt through African-
infuenced cinema, how African women are
changing the business landscape and the
legacy that the FIFA World Cup in Africa has
left behind.
Leading the way in my inaugural issue
is our fascinating interview with Fairtrade.
This extraordinary charity takes us through
its inspirational journey across Africa during
the last decadechanging attitudes, getting
a better deal for farmers and transforming
lives. What better way to start my frst issue?
Fasten your seatbelts and enjoy the ride.
John
- INFORMATIVE WORKSHOP SESSIONS
- NETWORKING OPPORTUNITIES
- AN EDUCATIONAL AGENDA
- CASE STUDIES AND BEST PRACTICES
WWW.ITINFRASTRUCTURE.CO.ZA | CAPE TOWN | 18 - 19 AUGUST
WWW.KINETICEVENTS.NET
INFO@KINETICEVENTS.NET
+27 21 555 0866
IT INFRASTRUCTURE SUMMIT
OPENING ADDRESS
Mrs. GNM Pandor, MP
Minister, Science &
Technology
Te ITI Summit welcomes all Senior IT Leaders, IT
Infrastructure Managers and CIOs to join us for a
two day event that will address how an innovative
and stable IT Infrastructure can drastically reduce
costs and improve business efciency

maerskline.com
Proudly serving Africa
How do we serve Africa? With 22 brand new ships, for starters.
And believe us: Teyre not just any
ships. With twice the capacit of the
industry average in West Africa and
their own on-board cranes, all 22 of
these proud vessels are the largest
ever to call at West African ports.
Tey are also models of energy
efciency, helping to propel
African exporters and importers
to environmental leadership by
slashing CO
2
emissions from
transport by 30% per container.
Why are we making such a big deal
about West Africa? Because Africa
matters. To Maersk Line and to
the world. And as a world leader in
container shipping, we want to be
your frst choice. Every time.
West Africa services New & improved!
22 custom-built ships, the largest in West Africa
Te markets best network
Unmatched schedule reliabilit
Personalised service and strong local presence
R1124_Africa_African_Business_Journal_8_5inchx11inch_AD1.indd 1 10-06-2011 12:42:51
Sara Kopamees | Editor in Chief | sarak@georgemedia.ca
John Pinching | Editor | johnp@tabj.co.za
Ben Watts | Staff Writer | benwatts@aubj.com.au
Cory Wilkins | Editorial Assistant |coryw@georgemedia.ca
Vladimir Lukic | Creative Director | vladimirl@georgemedia.ca
Chris Moore | Sr. Advertising Designer | chrism@georgemedia.ca
Margaret Oldham | Sr. Graphic Designer | margareto@georgemedia.ca
Wincy Law | Sr. Graphic Designer | wincyl@georgemedia.ca
Tanya George | Advertising Designer | tanyag@georgemedia.ca
Marc Mauricio | IT/Production Support | marcm@georgemedia.ca
Natalie Edney | Head of Sales | nataliee@tabj.co.za
Khayyam Darr | Research Director | khayyamd@tabj.co.za
Andrew Miskin | Research Director | andrewm@tabj.co.za
Brett Haigh | Research Director | bretth@tabj.co.za
Justin Lejuene | Research Director | justinl@irjonline.com
Hugh Braithwaite | Research Director | hughbl@tabj.co.za
Dee Nazer | Research Director | deen@tabj.co.za
Michael Alexander-Jones | President | michaelaj@georgemedia.ca
Linda Neal | Chief Executive Offcer | lindan@georgemedia.ca
Naveed Yusuf | Chief Information Offcer | naveedy@georgemedia.ca
Gemma Parkins | Executive Assistant | gemmap@tabj.co.za
South africa ofce
23 Wellington road
Parktown, 2193
Johannesburg
uK ofce
2 Sheen road
richmond
Surrey uK TW9 1ae
GEoRGE MEDIA InC.
TABJ Team
maerskline.com
Proudly serving Africa
How do we serve Africa? With 22 brand new ships, for starters.
And believe us: Teyre not just any
ships. With twice the capacit of the
industry average in West Africa and
their own on-board cranes, all 22 of
these proud vessels are the largest
ever to call at West African ports.
Tey are also models of energy
efciency, helping to propel
African exporters and importers
to environmental leadership by
slashing CO
2
emissions from
transport by 30% per container.
Why are we making such a big deal
about West Africa? Because Africa
matters. To Maersk Line and to
the world. And as a world leader in
container shipping, we want to be
your frst choice. Every time.
West Africa services New & improved!
22 custom-built ships, the largest in West Africa
Te markets best network
Unmatched schedule reliabilit
Personalised service and strong local presence
R1124_Africa_African_Business_Journal_8_5inchx11inch_AD1.indd 1 10-06-2011 12:42:51
Table of cOnTenTs
auGuST 2011 | VoluMe 2 | ISSue 8
080
cOver feATure
news
Business & culTure
resOurces
fAirTrADe Changing the future of africa 010
Muse Business news coming out of africa 018
Can One vOice propel the issue of empowering women
in african business into international agendas? 024
license to drill: Blue cHip Mining AnD Drilling has successfully
used a technique that many desire but few masterpatience 030
life at the rock face: TrOllOpe Mining 040
Jef Drill & BlAsT Dealing with the detonation demand 048
TeAl MinerAls Zeal for Zambian copper 058
Mozambiques frst-mover: BeAcOn Hill resOurces
is the company behind much of Mozambiques coal story 066
ciTy Of cApe TOwn Creating an african business hub 074
sOuTH AfricAs nATiOnAl pArks Park life 080
seMBcOrp sizA Water world 088
MunicipAl
010
116
Table of cOnTenTs
auGuST 2011 | VoluMe 2 | ISSue 8
cOMpAny fOcus
fOOD & Drink
spOrTs & leisure
ArTs
188
OuT Of AfricA John Pinching takes a lingering
look through the lens of african-infuenced cinema 094
pOpricA! Part one 100
eAgleBurgMAnn seAls Sealing africas approval 104
ganTrans Building business partnerships 110
grunDfOs Filling the well 116
H&M reMOvAls Taking the stress out of moving 122
cenTury prOperTy DevelOpMenTs Developments with free will 128
Secure in the knowledge: kuDuMBA invesTMenTs lTD. 140
leseDi nucleAr services is more ready than ever
to serve the local energy industry 146
Tiger Milling cOMpAny Tiger proves that economy needs dough 156
vOpAk Te worlds largest liquid storage provider 164
siMAng Transforming businesses 172
Cuts above the rest: HArTlief cOrpOrATiOn 178
grAnD prix Track changes 188
wOrlD cup after the fnal whistle 194
Fair
trade
Changing the future of Africa
Fairtrade has made incredible changes in
africa. Teir logo is now an unmistakeable
symbol for gooda force for fairness. TABJ
editor John Pinching asks Fairtrade africas
executive Director Michael nkonu how on
earth it has managed to achieve so much
TABJ: What does Fairtrade represent in 2011?
MicHAel nkOnu: In a world where food retail is
increasingly dominated by supermarket chains and
price wars, we give farmers and consumers an al-
ternative. Fairtrade helps farmers in Africa improve
their livelihoods by securing better trade conditions,
while we give consumers the possibility to make a
difference through their everyday shopping. Every
purchase of a Fairtrade certifed product from Af-
rica contributes to sustainable change in Africa.
TABJ: How does it standout as a charity?
Mn: We do not consider ourselves as a traditional
charity. We create opportunities for farmers who
have been disadvantaged by the conventional
trading system, to earn reasonable income for
their labours. Fairtrade empowers small-scale
farmers to actively participate in the value chain.
It is about a fair price for a fairly produced prod-
uct. Our ultimate goal is for producers to become
economically empowered without our support.
Has the original concept changed much?
Mn: The concept of fair trade has been around for
over 40 years but a formal labelling scheme didnt
get off the ground until the late 1980s, when the
frst Fairtrade coffee from Mexico was sold under
the Max Havelaar label. Since then the system has
grown exponentiallybut the core concept of sup-
porting producers to have sustainable livelihoods
has not changed. In Africa, the biggest transfor-
mation has been the creation of an intra-African
Fairtrade market. While Fairtrade traditionally fo-
cused on producing in the South, and marketing in
the North, we have recently started to introduce the
FAIRTRADE mark to consumers in Africa. Since 2008
Fairtrade products like wine, coffee and chocolate
have been available in South Africa and the range
has been immensely popular. In 2010 we introduced
in 20 yeArs we HAve reAcHeD
Over 500,000 fArMers AcrOss
AfricA. TODAy we represenT
MOre THAn 260 prODucer
OrgAnisATiOns AcrOss 26
cOunTries
12 COVER STORY Fairtrade: Changing the future of africa
the label into the Kenyan market, increasing market
access for African farmers and giving local consum-
ers the choice to support African trade.
TABJ: What was Fairtrades aim when it frst ven-
tured into Africa specifcally?
Mn: African farmers were involved in Fairtrades
activity from the beginning. Some of the labels
pioneer members are coffee farmers in Moshi,
Tanzania, and played a pivotal role in the initial
movement. We believe that transparent and
equitable trading environments will allow Afri-
can farmers to improve their lives. Today the
Fairtrade concept is thriving throughout Africa.
TABJ: What regions and industries has it concen-
trated on?
Mn: Fairtrade mainly focuses on agricultural com-
modities. Our top products include coffee, tea,
cocoa and fresh fruits, like bananas and pine-
apples. Cotton and fowers are also important
categories emerging from Africa. Our farmers are
located in over 25 countries across Africa, includ-
ing those in confict and post-confict, like Congo
and Sierra Leone. We work across the length
and breadth of Africa from North, East, West to
Southern Africa and our grassroots structures,
such as regional and product networks, enable
us to connect effectively with over 500,000 certi-
fed producers across the continent.
TABJ: How have your relationships with African
farmers and workers developed?
Mn: Fairtrade Africa represents African farmers in
the Fairtrade systemwe are the farmers. When
changes in the system are being considered, we
ensure that the voice of our members is heard and
that any changes refect their needs and realities.
TABJ: What educational ventures are you in-
volved in?
Mn: We contribute to education in Africa on differ-
ent levels. On top of the minimum price, traders
and consumers pay a sumcalled the Fairtrade
Premiumwhich is invested in social, environmen-
tal or economic projects that beneft farmers and
13 AUGUST 2011 The African Business Journal
their communities. Premiums are often used by
producer communities to support educational proj-
ects. Across Africa, schools are being built, schol-
arships awarded or computer classes set up as a
result of the Fairtrade Premium.
TABJ: How quickly did the organisations mes-
sages spread?
Mn: In 20 years we have reached over 500,000
farmers across Africa. Today we represent more
than 260 producer organisations across 26
countries. That number is growing, especially
now that we are introducing the African consum-
er market to the Fairtrade concept. We are creat-
ing a real movement for change in Africa, similar
to the one that already exists in the North.
TABJ: What have been the signifcant milestones
in Africa?
Mn: Apart from the introduction of the
FAIRTRADE mark in South Africa and Kenya, an
important milestone was our frst Fairtrade Africa
Forum, organised last year in Zimbabwe. Produc-
ers, partners and other stakeholders discussed
how Fairtrade can further help farmers achieve
sustainable livelihoods. The forum also offered
producers the possibility to take ownership of
Fairtrade Africa. We are currently planning the
second edition, to be held at the end of Novem-
ber in Accra, Ghana. In addition to the confer-
ence we are setting up a trade exhibition offering
farmers in Africa a platform to meet with traders
and create market access for producers.
TABJ: Has your work bred more trust between
businesses and suppliers?
Mn: AbsolutelyFairtrade relationships provide
producers with long-term access to markets. These
relationships are based on mutual respect, trans-
parency, and commitment, and grow stronger over
time. The recent developments in the coffee market
provide a good example. The sector is facing seri-
ous defaults due to the high demand and declining
yields, but Fairtrade producers are better prepared
for fuctuations. The Kagera Co-operative Union
(KCU), a Fairtrade coffee organisation in Tanzania,
recently won UK retailer Sainsburys Best Supplier
14 COVER STORY Fairtrade: Changing the future of africa
15 AUGUST 2011 The African Business Journal
relATiOnsHips Are BAseD On
MuTuAl respecT, TrAnspArency,
AnD cOMMiTMenTTHey grOw
sTrOnger Over TiMe
16 COVER STORY Fairtrade: Changing the future of africa
award. According to the jury, KCUs many merits in-
clude timely delivery, non-defaults, highest quantity
of coffee and unquestionable quality delivery. Quite
an achievement!
TABJ: Are you surprised at how instantly recogni-
sable the Fairtrade brand is in Africa and on a
global scale?
Mn: We have been around for 20 years, creat-
ing a real movement in the North. Over the
years the work of our dedicated Fairtrade
organisations such as TWIN, Divine, Traidcraft,
Caf Direct have worked with farmer groups
supporting their capacity building. Major
brands such as Starbucks and Cadbury have
also launched Fairtrade products, increasing
the visibility of the FAIRTRADE Markin addi-
tion to numerous other products, which you
can fnd on the shelves in local shops. African
farmers believe fairer trading conditions are
the way out of poverty and producers have
defnitely seen the change in their lives com-
munities. Fairtrades success in Africa demon-
strates that consumers and the general public
think trade, not hand-outs, is the way to allevi-
ate poverty.
TABJ: In what way have attitudes changed be-
cause of Fairtrade in Africa?
Mn: We have seen a major change in how busi-
ness is done, especially in the cocoa sector in West
Africa. With major brands switching, competitors
are beginning to think about how they source their
products. The impact of the Fairtrade Premium,
which is invested in social, environmental or eco-
nomic community projects, has been very infuen-
tial. In Africa, Fairtrade has contributed hugely to
improving the capacity of farmer organisations. To
become certifed, cooperatives need to develop
business strategies and implement fnancial or
environmental management plans.
TABJ: What is the most rewarding aspect of
Fairtrades tireless efforts?
Mn: It is the change we see taking place at in-
dividual, household and community levels. It is
satisfying to see how Fairtrade is transforming
17 AUGUST 2011 The African Business Journal
communities through community health cen-
tres that offer maternity care for women and
classrooms that reduce the walking distance
of school children. It is equally rewarding to
hear how farmers outgrow themselvesbeyond
Fairtrade. Due to the management changes
made, many farmers are able to start apply-
ing for grants or partner other NGOs in further
improving their livelihoods.
TABJ: Are there plans to expand the operation in
Africa?
Mn: Yes, the biggest shift is the opening and ex-
panding of consumer markets, but we also want
to reach out to more producers, targeting new
countries like South Sudan. We are also devel-
oping standards for new products or expanding
existing commodities.
TABJ: What are the long term ambitions in Africa?
Mn: The vision of Fairtrade Africa in the next
fve years is to develop into a formidable Afri-
can-based producer organisation, supporting
capacity development in Africa and facilitating
intra-African trade for producers, enabling an
increase in market access, food security and
wealth creation. TAB
fAirTrADes success in
AfricA DeMOnsTrATes THAT
cOnsuMers AnD THe generAl
puBlic THink TrADe, nOT HAnD-
OuTs, is THe wAy TO AlleviATe
pOverTy
Muse business news coming out of africa
sOuTH AfricA super BrAnD
International Marketing Council (IMC) of South
Africa CEO, Miller Matola, has claimed that the
role of ambassador belongs to all South Africans,
especially when it comes to promoting the country,
its innovation, people and economic sustainability.
The rousing call was made at a stakeholder
summit held at the Durban International
Convention Centre.
The IMC is responsible for the South African
brand and works on transforming the countrys
image by developing and marketing strategies that
invite the rest of the world to experience South
Africa through either tourism or business ventures.
A nations brand determines to a large extent
how well a country competes for its share of inves-
tors, consumers and visitors in a global economy.
South Africa has been written off several times, but
has managed to prove its competence, said Ma-
tola.
We see possibilities in everything, provide in-
novative solutions and have become a key player
in global institutionsthis is what we need to be
selling, he added.
The IMC conducts a Domestic Perceptions Au-
dit to fnd out how South Africans feel about their
country.
It monitors what the media is reporting abroad
through the Reputation Industry tool. They also
use the International Tracker Results to see where
in the world elite businesses are choosing to invest.
There are also campaigns being run to help
promote the country. A more recent example is the
Play your Part campaign during which South Afri-
cans were asked to give someone a helping hand,
either with their time or resources.
business news coming out of africa
spurreD On
Tottenham Hotspur Football Club have arrived
in Johannesburg for the Vodacom Challenge, a
traditional pre-season tournament.
Spurs former skipper Gary Mabbutt (right)
insisted that the London team were not in South
Africa on for a jolly but as important prepara-
tion for their frst Premiership of the new season,
against Everton on August 13.
The North London clubs opening game of
the Challenge is against the Kaizer Chiefs at the
Peter Mokaba stadium in Polokwane. They will
also face PSL champions the Orlando Pirates.
Mabbutt, now a team ambassador, said
Spurs had brought their best players, including
the unsettled Luka Modric, to South Africa and
that coach Harry Redknapp was expecting a
tough challenge.
I get frustrated when people say we are here
just on a pleasure trip around South Africa, said
Mabbutt, who played more than 480 matches for
Spurs between 1982 and 1998. This country is
a great location for our pre-season preparations.
The PSL (South Africas top football divi-
sion) had one of the most amazing fnishes last
season, with Chiefs, Pirates and Ajax all in it. We
want to win the Challenge trophy, but we know
its not going to be easy, he added.
South Africa has been thriving in terms of
both professional football, and as a formidable
place to do business, since last years highly
successful and well-organised World Cup tourna-
ment. The recent visit of teams such as Spurs
and Manchester United has ensured that trading
in South Africa keeps improving.
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20 SECTION Title
Muse business news coming out of africa
Merkel MAkes energy TAlk
Germany is seeking to bolster renewable energy
trade with Africa, Chancellor Angela Merkel (right)
said, during her recent visit to the continent.
German solar power entrepreneurs see Af-
rica as a potentially huge market for their prod-
ucts and part of Merkels visit to Kenya included
a look at the German-made solar technology at
the new headquarters of the UN Environment
Program in Nairobi.
She and UNEP Executive Director Achim
Steiner toured the new offce facilities, which
boast more than 64,000 square feet of solar
panels, energy-saving lighting and other green
features.
Merkel said before the tour it was an ex-
ample of how Germany and Africa can help each
other economically on energy.
Germany intends to demonstrate how it is
also possible to produce energy using renewable
sources, Merkel said. I believe that Germany is
a prominent leader in this feld and weve dis-
cussed how we can cooperate more closely in
the energy sector.
Accompanying Merkel in Africa were a group
of German parliamentarians and business lead-
ers who were seeking ways to boost the role of
Germanys private sector in developing an Afri-
can green economy.
Germanys renewable energy trade with Af-
rica amounts to $396 million per year but indus-
try backers insist that amount could be greatly
boosted.
PHOTO BY 360B / SHUTTERSTOCK.COM
21 AUGUST 2011 The African Business Journal
business news coming out of africa
lOAn HArk
Micro, small and medium enterprises (MSMEs)
in North Africa are key to driving employment for
millions of young citizens, but businesses on the
smaller end of the scale have some of the lowest
level of access to fnance in the world.
The approval of a $50 million loan to Tunisia
marks the launch of a World Bank facility
designed to address this. The World Bank
Groups MSME Facility is expected to channel
over $500 million to Middle East and North
Africa (MENA) countries over the next fve years,
including support from the International Finance
Corporation, regional partners such as the
African Development Bank and donors.
This regional facility and a partnership with
a number of development institutions, is a strong
and timely response to a MENA-wide lack of
access to fnance and jobs and is a critical pillar
of the World Banks Arab World Initiative, said
Shamshad Akhtar, Vice President for the MENA
region at the World Bank.
SMEs in the region have enormous
potential to create much-needed employment
opportunities for a growing, young and
increasingly impatient population. We urgently
need to start this engine and creating access to
fnance is critical, he added.
22 SECTION Title
Muse business news coming out of africa
vOTe Of cOnfiDence
Encouragingly, the Africa Business Confdence
Index (ABCI) for June shows growth in both the
index for manufacturing and non-manufacturing
sectors in Africa, the Africa Business Panel has
announced.
The difference compared to May in the indi-
ces for manufacturing and non-manufacturing is
0.1 and 3.3 percentage points respectively.
Business professionals from 30 countries
in Africa participated in the survey making the
results a reliable gauge and early indicator of
the underlying economic activity on the African
continent.
freeDOM figHTers
A survey of chief executives in 10 African coun-
tries has found that businesses in Africa enjoy
more freedom. In addition regional governments
are apparently more attentive to the private sec-
tor than in previous years.
The study, released by PricewaterhouseCoo-
pers, asked 201 business leaders from a broad
cross-section of industries within local and expa-
triate businesses.
Philip Kinisu, a top offcial with Pricewater-
houseCoopers in Kenya, said The private sec-
tors in Kenya, South Africa, Nigeria and Rwanda
are actively and energetically participating with
governments on strategic planning.
The survey found that chief executives are
generally optimistic about economic growth in
Africa with more than 60 per cent expecting their
business to grow in the next 12 months.
23 AUGUST 2011 The African Business Journal
business news coming out of africa
MurDOcH MOsT HOrriD
It may not be directly linked to African business
but the damage done to the so-called Murdoch
Empire has far reachingand mainly positive
consequences for journalism, reportage and the
integrity of the western press.
When the News of the World fnally fell on
its swordseveral years after private investiga-
tor, former AFC Wimbledon striker and all-round
slimeball Glenn Mulcaire slithered into prison
there was an almost universal sigh of relief. For
scribes the world over it is a victory worth savour-
ing, for it is essentially a successful assault, not
only on immoral practices, put the arguably more
loathsome practice of publishing puerile, mind-
numbing, culturally bankrupt passages about
cretinous footballers and talentless celebrities.
It has also brought to account the somewhat
baffing infuence of the Murdoch family (and
indeed the hitherto untouchable mane of red
hair that is Rebekah Brooks) on governments and
governmental policyand this can only be seen as
a natural restoring of the universes equilibrium.
We have witnessed the death of a publication
which, despite its name, had a no relationship
with news, no resonance with the world and no
place on the news stand. TAB
PHOTO BY STOCKLIGHT / SHUTTERSTOCK.COM
PHOTO BY HARALD DETTENBORN/WWW.SECURITYCONFERENCE.DE
Can One vOice
propel the issue of
empowering women in
african business into
international agendas?
HOw HillAry clinTOns wOrDs AT THe AfricAn uniOn
cAn MAke A Big iMpAcT AnD Drive iniTiATives frOM THe
glOBes MOsT viTAl fOrces BeHinD eMpOwering wOMen
in Business
Business & culTure
26 BUSINESS & CULTURE african women in business
always a woman to captivate an audience,
u.S. Secretary of State hillary Clinton
faced a tough crowd when she addressed
the african union (au) in addis ababa,
ethiopia on June 13.
if All THe women in Africa from Cairo to Cape
Town, decided they would stop working for a week,
the economies of Africa would collapse, she an-
nounced, drawing pause from many of the dele-
gates representing 53 African nations who did not
necessarily share her sentiments.
The women of Africa are the hardest working
women in the world.
A strong advocate for womens rights on all
fronts from her Talking it Over newspaper columns
(1995-2000) to her famous Womens Rights are
Humans Rights speech (2008) and more recently
her role in speaking out against driving bans in
Saudi Arabia, Clintons position when it comes
to the role of women in businessand how this
ought to be maximised globallyis a pretty well-de-
fned talking point. But is she merely another high
profle political fgure with a platform for rhetoric
and little swing to foster change, or an important
means for organisations to get their messages
heard and put pressure on the right points of con-
tention to aid progress?
One month on from her high profle address
to the AU, how have law-makers and commenta-
tors throughout African continent reacted to her
calls for improvement, and what is really being
done on the ground to enact change for the em-
powerment of women in the nations business
sector?
A trigger for progress
Before accounting for Clintons remarks at the
AU meet, it is important to outline the attention
that Africa-U.S. relations have gotten in the past
couple of months. In June U.S. President Barack
Obama played host to Goodluck Jonathan, Presi-
dent of Nigeria, and President Ali Bongo Ondimba,
of Gabon, at the White House. First Lady Michelle
Obama, with daughters in tow, also toured South
Africa and Botswana. Then at the closing cer-
emony of the African Growth and Opportunity Act
(AGOA) forum, Clinton announced that the U.S.
will commit $2 million to the African Womens
Entrepreneurship Programme (AWEP); days before
speaking at the AU gathering.
Clintons own prevalence in empowering wom-
en in Africaincluding those in business dates
back to her 1995 fve-nation South African tour.
She has since declared this tour to have been a
transformative experience (and one well in ad-
vance of her own ascent into politically-motivated
spheres) which may account, in part, for why her
27 AUGUST 2011 The African Business Journal
words are believed to carry such weight in terms
of policy-making, global investment attention and
general media coverage.
In addition to the various images, depicting
her standing alongside women from rural, tertiary
and family business enterprises, her unrelent-
ing commitment to the issue strikes some heavy
headlines and spotlighting that likely makes
numerous autocrats uncomfortable. Her endorse-
ment of public and private entity-led schemes and
commitments elevates any due organisations
profle, forcing change rather than merely sug-
gesting it. The AU address demonstrates this well:
While many offcial attendees remained stoic
in the wake of her comments about empowering
women in business, raucous applause ensued
from the gallery section, signifying that while some
in power may not kowtow to her words, her role in
the minds of many is weighty enough to convey
the message intended; with or without getting a
standing ovation from those in the room.
Complimenting initiatives
While Clintons role as a mouthpiece cannot be
underestimated, it is likely to be most effective
when in synergy with the various bodies
28 BUSINESS & CULTURE african women in business
campaigning, lobbying and driving change in
the role of women in African business in other
echelons. She and like-minded public fgures,
have forced the subject into the highest agendas
of various important international organisations,
not least that of the United Nations (UN) and its
new arm, UN Women. The unit announced its frst
UN Women Justice Report in early July, Progress
of the Worlds Women: In Pursuit of Justice. The
report aims to convey why fnancial support is a
must-have to ensure the betterment of women
related to gender equality, with a sizable portion
sliced up and dedicated to roles in the business
world, including in Africa. Two of the groups fve
aims are of particular signifcance: enhancing
womens economic empowerment; and making
gender equality central to national development
planning and budgeting. The report outlines what
it will really take to bolster development, from
heightening womens inputs in policy-making and
political choices, to proper allocation of land and
agricultural resources, education and healthcare
29 AUGUST 2011 The African Business Journal
concerns, and how social injusticeslong-
engrained in some statescan most effectively
be tackled and dealt with in strategically to long-
term success. Simultaneously, these overarching
reports factor in contribution from various other
bodies, concerned with progress in more specifc
areas including how to work on up-skilling women
in given regions, encouraging entrepreneurship
and providing day-to-day support in the form
of centres, advisors and local-level programs.
Investigation of each of these levelsClinton
and her role as a part of the media message;
research and bodies working for policy-making
and legislative change; and smaller groups
dedicated to working on an individual basis to
improve daily lifeunveils how local, national
and international levels can collide and work
more effectively between one another, as well as
identifying why Clintons comments can, possibly,
carry far more signifcance than frst impressions
suggest. TAB
MAking A Difference
For more information about companies and organisations working to empower
women in African business at every level, please see this snapshot:
The African Women In Business Initiative (AWIB), from the African
Development Bank (AfDB)
The Global 10,000 Women Certificate Programme for Entrepreneurs funded
by Goldman Sachs.
The Businesswomans Association of South Africa (BWA
The International Finance Corporation (programs Village Phone and the
Democratic Republic of Congo Access to Finance Project received Gender
Awards for empowering women in business).
Uganda Network of Women Entrepreneurs (UNWE)
license TO Drill
Blue Chip Mining and Drilling has
successfully used a technique that
many desire but few masterpatience
license TO Drill
Blue Chip Mining and Drilling has
successfully used a technique that
many desire but few masterpatience
resOurces
030
32 RESOURCES Blue Chip Mining and Drilling
Te world is full of business people who insist on
functioning at full throttle, without ever slowing
down to check out the scenery, and properly
manage growth. Blue Chip Mining and Drilling
is quite the opposite. Te company has been
happy to cogitate and refect on the intricacies
of a competitive business, before making moves
that will maximise its performance. Indeed, it
began its journey in 2003 by very deliberately
and methodically assessing the market that they
intended to dominate.
33 AUGUST 2011 The African Business Journal
34 RESOURCES Blue Chip Mining and Drilling
frOM iTs OriginAl conception, rather than chasing
the fast buck, Blue Chip Mining actually spent 18
months training staff, sourcing equipment, mak-
ing quality control testing and generally polishing
its products; only starting to trade when absolutely
sure it would deliver the best possible service to its
customers. Its brand and reputation were always
going to be the foundations upon which the new
company would build its empire.
Thanks to that initial investment the compa-
ny is now one of the most reputable and fourish-
ing drilling and mining companies in Africa, with
several lucrative contracts with big companies,
including corporation giants Anglo American. Its
safe to say the idea of medium term analysis for
long term gains has been an unprecedented suc-
cess, with each year reinforcing how sensible it
was to look at the bigger picture in the frst place.
Climbing high
In the years since it began trading the company
has leapt from a small, level eight company to a
large level three operation, on the South Africa
mining league table. For those that are not famil-
35 AUGUST 2011 The African Business Journal
36 RESOURCES Blue Chip Mining and Drilling
iar with the scoring system, this is a bit like South
Africa reaching the World Cup Final!
During this galvanising period it has over-
taken many historically advantaged competitors
in the feld, while also expanding into services
in different categories across the mining realm.
This impressive diversity includes catering for
the local market, in which it has no recognisable
competitors. For these small regional businesses
it mainly acts as a priceless source of advice for
applicants seeking mining licenses.
Managing Director Martyn Van Zyl has been
impressed by the rapid progress: Where we have
outsourced certain processes in the past, we now
do the vast majority of the work in house, he says.
Effciency is a major part of our focus, ensuring
that we save client costs and become really com-
petitive in the tendering process.
Explosive impact
The company also has its own licence with the
South African Police allowing it to handle explo-
sives, perform blasting and complete processing
to the fnal product before it goes to the smelt
pits for refnement. Its entire feet has also been
equipped with mobile mining equipment, while
also changing its workshop to a mechanical
operation, allowing employees to use equipment
37 AUGUST 2011 The African Business Journal
they are familiar with in every location.
Safety is at the forefront of Blue Chips priori-
ties and all equipment meets the countrys robust
standards, resulting in exemplary working condi-
tions and a record of safety that is second to none.
We do a comparative analysis of parts and
products, testing vigorously before we promote
them to clients, or include them in our opera-
tions, adds Van Zyl.
With further effciency targets on the horizon
the company will stop at nothing to ensure cut-
ting edge practices. Indeed, Blue Chip is currently
testing the life span of drill bits, determining the
most abrasive metals. The outcome shows exact-
ly what is required for better penetration and how
many metres can be mined every minute.
Martyn explained how the reputation of the
company came above everything else. We dont
want to engage in practices that can cause damage
to the company, so ethics are a high currency in our
organisation, he says. It is essential that we also
subscribe to the policies of our biggest clients be-
cause they are constantly under the microscope.
Revolution
Coming through a period of global for everyone,
historical and political transformation for South
Africa in 1994, the company has continued to
38 RESOURCES Blue Chip Mining and Drilling
39 AUGUST 2011 The African Business Journal
evolve, while embarking on positive discussions
with government offcials about future projects
and how to use existing public sector equipment
cost effectively.
The economic downturn, while proving a big
challenge, was overcome with careful planning,
regular consultations among staff and using
profts to improve maintenance. This meticulous
approach, which has always proved so benefcial,
even before the recession, meant that the com-
pany and its 300-strong workforce didnt suffer
any long term problems.
The practice of forging good professional
relationships, formed in a competitive but buoy-
ant industry will ensure optimum trading for
the company over the next 20 to 50 years. In
recent yearsparticularly since the radical cul-
tural changes of the mid-ninetiesthere has also
been a noticeable increase in the demand for
South African expertise in civil engineering and
mining, where in the past companies may have
approached India or China instead.
With seven years of faultless operations, in-
dustry integrity ingrained in its philosophy and a
position at the summit of its feld, the company has
every reason to keep chipping away. TAB
TrOllOpe Mining
life at the rock face
040
Mining company proves that facing the abyss can be the making of you
resOurces
TrOllOpe Mining
life at the rock face
Mining company proves that facing the abyss can be the making of you
42 RESOURCES Trollope Mining Services
in THe currenT climate, experience and knowl-
edge represent the greatest advantages for
businesses in any industry. For Trollope Mining
Services, a combination of these assetsalong
with a considerable harvest of passion and ambi-
tionhas been more essential than ever. Indeed,
in the fght for survival the company has actually
fourished, showing itself to be among the fttest
mining companies on the block. Reassuring proof
that sometimes the good guys get their rewards.
Brothers in arms
Trollope Mining Services was created 35 years
ago when two enthusiastic brothers, Peter and
John, bravely took their frst steps in business.
They started off the Trollope enterprise by tena-
ciously purchasing ex-military equipment from
auctions. Using their farm as a base the pair then
began to reuse their acquisitions on short-term
contracts in the mining business, and the rest, is
historybut a history worth telling.
During those halcyon early days the brothers
saw their business outgrow the farm, prompting
a move down to Johannesburg. Here they fo-
cussed predominantly on the coal mining sector,
while also venturing into manganese, gold and
43 AUGUST 2011 The African Business Journal



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44 RESOURCES Trollope Mining Services
platinum. Since then Trollope have specialised in
open pit mining; taking signifcant loads from the
ground, drilling and blasting it, removing the rock
and stock piling the usable material.
The companys main facility is now situated
just outside Johannesburgincorporating head
offces and workshops. There are also bases in
Thabazimbi and Jurmala. Every contract also has
its own workshops and offces on site.
Going global
For many years the companys biggest contract
was with Xstrata in South Africa, however, when
the crash came in 2008, some of the agree-
ments had to be terminated. Ironically it is these
cancellations that have been a catalyst for the
companys transformation.
In response to the global economic crisis
the company started to take on a greater variety
of contracts among the junior to middle min-
ing houses. Perhaps most signifcantly, Trollope
started to take its operations abroad, compiling a
substantial international client base, with proj-
ects in Australia, Turkey, Spain and France. The
workforce has also stabilised and risen to 1,000.
Managing Director Guy Hopkins explains:
The economic downturn made us look at the
bigger picture and consider the possibilities of
trading on a global scale, he says. I think in
45 AUGUST 2011 The African Business Journal
46 RESOURCES Trollope Mining Services
hindsight it was a good thing that we were freed
from the some of the long term contracts, as it
enabled us to pursue other options.
In the past we were far too exposed in one
single sector, with one single client. Now we have
an impressive range of clients, projects in sev-
eral different countries, a great reputation in the
industry and a steady cash fow, he added.
Promised land
Inspired by the healthy position and huge pool of
expertise within the companys ranks, there are
plans to expand within key African areas, notably
Zambia, Zimbabwe and Botswana. With the order
book 90 per cent full there is also a solid founda-
tion on which to approach other ventures.
From a fnancial point of view we are in an
exceptionally strong positionahead of a lot our
competitors. We probably went through the down-
turn quicker than anyone else, so we managed
to emerge from it quicker and equip ourselves
for the future, says Hopkins. Some of the other
guys are still carrying old contracts at poor rates
at not getting the yields or proftability.
During what has been a very steep learning
curve the company has also had the opportunity
47 AUGUST 2011 The African Business Journal
to fne tune its equipment policy. All primary
machinery must now be brand new, ensuring
it has the longest possible life span, while also
providing reliability and exceptional performance.
The result of these widespread changes is
a fresh impetus among staff whose morale is at
an all time high.
Family values
Peter and John are still very much involved in the
company and are as passionate as ever. John is
involved in the plant side, where he is currently
mentoring an up and coming manager, and Peter
is lending his considerable acumen to business
development.
We are keen to retain a family ethos within
the business, while still embracing core corpo-
rate principals, with structured systems, poli-
cies and procedures. Its about striking the right
balance, concludes Hopkins. I look at how the
business runs on a day to day basis and, while
it is very professional, it still has the spirit and
personal touch of a family business.
The biggest test for a company is how it rolls
when the punches are fying. Trollope refused to
throw in the towel and instead came out fghting.
Trollopes journey is an uplifting triumph over
adversity tale and, after doubling its turnover in
the last year, it seems like this story has many
more chapters still to be written. TAB
www.Tmsgroup.co.zA
DeAling wiTH THe
DeTOnATiOn DeMAnD
Jef Drill & Blast
048
DeAling wiTH THe
DeTOnATiOn DeMAnD
Jef Drill & Blast
resOurces
50 RESOURCES Jef Drill & Blast
51 AUGUST 2011 The African Business Journal
Mining can be a dangerous businessand the risks involved are only
worth pursuing if stringent care is taken. With this in mind it comes
down to companies such as drilling and blasting specialist Jef Drill
& Blast to take care of the pyrotechnics and electronic detonations
required for mines to reveal their hidden payloads.
52 RESOURCES Jef Drill & Blast
wiTH A TurnOver in excess of ZAR300 million,
Jef Drill & Blast has emerged from depths of
recession, with aplomb.
In general the resources we are majorly
operating in are really on the upespecially now
that the export markets are stable again, says
Jef Drill & Blast managing director Johan Pieterse.
The only thing that we see threatening the busi-
ness is the current labour trends in South Africa.
The company has a 300-strong workforce
and a very impressive staff turnover of less than
one per cent a year, according to Pieterse, who
says that despite union action and strikes dis-
rupting certain industries in South African, Jef
Drill & Blast operations look likely to continue
unhindered due to its good staff relationships.
We have a very good relationship with all
our people, notes Pieterse. But its the outside
infuence were worried about.
Within the company we are a well-oiled
machine, with things ticking over and under
control. Weve got a great consumer base, great
people working for us, great equipment and we
are owned by a great company with great senior
management fgures; so as it stands everybody
is happy, he asserts.
53 AUGUST 2011 The African Business Journal
54 RESOURCES Jef Drill & Blast
A rich history
This year the company is celebrating its 21st
birthday and has, in the past two decades, built
up a colourful history.
Pieterse joined the company in 1994 and
two years later was part of a team that led a
management buyout of the frm. In 1997, Jef
Drill & Blast founder Peter Francis retired, at
which point Pieterse and his team took over the
running of the company.
Following ten successful years of growth, the
specialist mining frm was bought out by South Afri-
can mining giants Sentula Mining Limited in 2007.
The recession, however, was just around
the corner. Jef Drill & Blast initially struggled
through the fnancial downturn, and as a result
is today ploughing much of its focus into the
coal mining sector.
Pieterse says that the company indirectly
lost business through the global decline in gold,
having previously worked with clients within that
industry and in the diamond mining sector.
We were working on projects that actually
closed down or mothballed, says Pieterse. The
fact that we suffered as well led to us to lose 50
per cent of our business in 2009 because of the
55 AUGUST 2011 The African Business Journal
recession; but we realised that the country needs
coal to supply people with electricity.
The company currently uses 45 specialist
drilling rigs in the opencast mining sector, and
has its operational eyes focused on the growing
coal sector in southern Africa.
Jef Drill & Blast is a key division within Sen-
tula, servicing all of its opencast mining projects
as well its own expanding list of clients.
Formerly known as Scharrig Mining Limited,
Sentula has been listed on the main board of the
Johannesburg Securities Exchange since 1993.
Involved in opencast mining and rehabilita-
tion with operations in 12 countries across the
African continent, Sentula is also one of the ma-
jor suppliers of outsourced mining and rehabili-
tation in the South African coal mining industry,
and has grown to become the leading opencast
coal mining contractor in the country.
With such a wealth of managerial talent to
turn to at Sentula, Pieterse says that Jef Drill &
Blast has found itself in a fortunate position.
Safety frst
Working for Jef Drill & Blast may sound like fun,
but causing explosions and detonating dynamite
56 RESOURCES Jef Drill & Blast
57 AUGUST 2011 The African Business Journal
is not childs play. The company deals with safety
in the most serious manner possible, notes Piet-
erse, who says safety is part of the frms fabric.
It is a dangerous business, but it is also like
driving a car, he remarks. You can do it safely if
you stick to the rules and regulations.
Safety for us is a paramount concern and
we start off with a safety perspective in every-
thing we do. We undergo a constant process of
training and retraining with our employees, in
order to keep them up to speed with the latest
safety developments, and we also try to make
it interesting for them, he adds. Safety is our
lifestyle and it is not something we enforce
with our staff.
To further push through his point about the
companys attitude towards safety, Pieterse says
that it is something the frm lives and describes
it as like a religion in our business.
Removing the hassle
In a marketplace that needs professional blast
and drill specialists in order to function, Jef
Drill & Blast is busy setting itself apart from
the competition.
We have been a very good service provider
in the past few years and our clients expect
us to make the customer number one in our
business, says Pieterse. We provide a unique
service and product, and its something that a
lot of mining companies cant do themselves.
We are sensible and we are able to allow
the companies we work with the chance to focus
on what they are good atminingmeaning we
can handle the earth-moving equipment.
We reckon what we can do is take a huge
hassle factor out of the hands of our customers,
he stresses.
In the next few years the company is target-
ing a slow, but steady expansion, notes Pieterse.
We are slowly, but surely, looking to develop
other markets and it is not a strange thing for us
to work in other sectors of mining, he reveals.
Mozambique is starting to make its mark on the
map now in regards to coal mining, as is Zambia
and the Democratic Republic of Congo, where
our sister company does a lot of exploration for
gold and coal, so these are markets were cer-
tainly looking at, along with Botswana.
Having recovered from the recession with a
bang, and having detonated a steady plan for fu-
ture growth, Jef Drill & Blast looks set to embrace
an explosive future. TAB
JefDrillAnDBlAsT.cO.zA
Teal Minerals
zeAl fOr zAMBiAn cOpper
058
Teal Minerals
zeAl fOr zAMBiAn cOpper
resOurces
60 RESOURCES Teal Minerals Inc.
In 2005 and 2006 african rainbow Minerals
(arM) limited, a South african diversifed
mining and minerals company, listed its non-
South african exploration assets on the Toronto
Stock exchange through Teal exploration and
Mining Incorporated (Teal). In 2009 following
the delisting of Teal, Vale S.a (Vale), a Brazilian
diversifed multinational, acquired 50 per cent
of Teal Minerals (Barbados) Incorporated (the
company).Tis was the beginning of the Vale/
arM joint venture (Vale/arM JV) that would
see the partners using the joint venture to focus
on copper mining in Southern africa.
62 RESOURCES Teal Minerals Inc.
since THen, THe Vale/ARM JV has progressed a
number of exploration and extraction projects in
Zambia and the Democratic Republic of Congo
(DRC). The companys strategy is being driven
by its joint-venture status and its decentralised
business philosophy, according to senior general
manager Edward Legg.
The company leverages on technical and
corporate support from both joint-venture share-
holders and therefore accesses world best prac-
tical practice, remarks Legg.
The group currently employs approximately
250 staff, the majority of whom are drawn locally.
Its current key focus in Zambia is to develop
Phase 1 of its Konkola North Copper Project which
aims to produce 45,000 tonnes of copper from
2.5 million tonnes of ore per annum and has a
life of 28 years. Phase 2 of the project, which will
follow once studies are complete and has received
shareholder approval, will increase production to
100,000 tonnes of copper per annum.
Legg says: The climate for investment in
Zambia is very attractive due to the present
governments approach to expanding opportuni-
ties for investment.The company expects the frst
phase of the Konkola North Copper Project to
employ approximately1,500 people at full pro-
duction, of which 95 per cent will be Zambian. At
present it has approximately 1,400 contractors
on site for the development phase, which will
increase to a total of 2,000 the majority of whom
will be Zambian.
The Vale/ARM JV is also active in the DRC,
where Legg says the climate for investment has
improved due to infrastructure and service im-
provements.
In both the DRC and Zambia, the company
has local partners, being the state-owned min-
ing companies Gcamines and ZCCM-IH, he
remarks.
Development plans and an aggressive
approach
The joint venture is currently developing the
frst phase of the Konkola North Copper Project,
63 AUGUST 2011 The African Business Journal
64 RESOURCES Teal Minerals Inc.
which will produce 45,000 tonnes of copper in
concentrate per annum from its underground
mechanised mine in Zambia.
It has also undertaken an extensive drilling
campaign in the remaining area of the mining
licence, where it expects to develop Phase 2 of
the project which will be of similar magnitude in
three to fve years time, notes Legg, who adds
that the Vale/ARM JV also has other exploration
projects in Zambia.
The company is also fnalising a pre-feasi-
bility study for the development of an open cast
mine in the DRC, remarks Legg. Gecamines is
a 40 per cent partner in the Kalumines Project
with the Vale/ARM JV and there are also addi-
tional potential exploration targets in the mining
licence area.
We are aggressively addressing both of
these projects, he adds.
The execution of the frst phase of the Konko-
la North Project development, which includes the
underground infrastructure and the construction
of a processing facility at the mine, is underway,
representing an investment of approximately
US$400 million, according to Legg.
In-fll drilling in the target area for the sec-
ond expansion phase has commenced and the
study for this investment will follow the resource
clarifcation.
Legg also points out that a pre-feasibility
study on the Kalumines Project in the DRC is
underway.
This anticipates the development of an
open-cast mine to process oxide ore in two phas-
es, he explains. The frst phase is a concentra-
tor, which will be followed at a later stage by a
solvent extraction and electrowinning refnery.
In addition to these projects, the company
is also undertaking exploration at its mine sites
as it looks maximise all the opportunities it has
been presented with in the two African countries.
Community care and a focused future
The Vale/ARM JV has established a series of Cor-
porate Social Responsibility (CSR) programmes
at each of its operations designed to meet the
needs of local communities. At the Kalumines
Project in the DRC and Konkola North Project in
Zambia, the company is focusing on infrastruc-
ture, primary education, agriculture and health
initiatives.
Legg notes: The initiatives at Konkola North
are currently being readdressed with the commu-
nity due to the development of the mine.
We are anticipating a potential resettlement
of residents in the affected area, which will result
in infrastructure upgrades in the enlarged Konko-
la village. During the economic downturn in 2008
65 AUGUST 2011 The African Business Journal
the company was forced to resize, but now is well
positioned to take advantage of the increased
demand for copper, notes Legg.
Alongside its CSR initiatives, the Vale/ARM
JV also has in place an environmental program
to monitor and mitigate the impact of its mining
and exploration activities.
Both joint venture partners monitor their
carbon footprint, and therefore the company
subscribes to the same values, Legg remarks.
We adopt Equator Principles with respect to en-
vironmental management and the social impact
of mining.
In the coming years the company is looking
to take advantage of its projects as they come
online and in some cases enter full production,
according to Legg.
The company expects Phase 1 of the Konko-
la North Copper Project to reach full production
within the next four years, and Phase 2 to be well
into the development stage in that time period,
he says. But moving forward, we will continue to
address the expansion of our footprint into the
Southern Africa copper business. TAB
66 RESOURCES Beacon Hill Resources
MOzAMBiques
Big plAyer
Beacon hill resources is the
company behind much of
Mozambiques coal story
066
67 AUGUST 2011 The African Business Journal
MOzAMBiques
Big plAyer
Beacon hill resources is the
company behind much of
Mozambiques coal story
resOurces
68 RESOURCES Beacon Hill Resources
With global steel production tipped to
increase to 1.5 billion tons in 2012, its fair
to say that miners who have got in early and
secured top projects in the right locations, are
in good stead for the foreseeable. Tose who
have managed to enter Mozambican projects
into their portfolios are amongst the best,
and the few that have acted as frst-movers
towards reaching near-term production in
the region are the most applauded of all.
one such company, frmly rooted on global
buy lists with two primary assets that ft
any investors bill, is Beacon hill resources
Plc (lon:Bhr); the company in possession
of an exciting magnesite play in northwest
Tasmania (the arthur Magnesite project, with
a JorC confrmed resource of 39 million
tonnes on track to commence feasibility
in 2012) and the Minas Moatize coking
coal mine in Tete, Mozambiquethe only
operating mine in the coking coal destination
of choice (JorC resource 80 million tonnes,
mineable resource 57 million tonnes).
since rAising A further US$20 million in funds in
April, Beacon Hill has been particularly busy. From
its recently completed Phase 1 drilling programme
at Arthur River, to readying for coal export from
Minas Moatize, there is a lot to prepare for. Minas
Moatize is on track to commence coal exports from
the second quarter of this year. Arthur Rivers scop-
ing study continues in full swing, taking the project
towards full feasibility and fnding the right partner
for future success. In the words of Justin Lewis,
Chairman, weve been going hell for leather.
First in Tete
As the company at the helm of the only operat-
ing coal mine in Tete to date, BHR is in the midst
of some incredible investment and expansion.
Neighbours Vale and Riversdale Mining are
going about building two of the worlds largest
coal projects, commanding new deepwater port
facilities, rail refurbishments, river barging, work-
forces and everything else needed to quite liter-
ally re-landscape the region as a mining hub. As
a result, Lewis explains, it has been important
for BHR to uphold the political importance of the
Minas Moatize mine and understand what its
successful production means for the province at
this stage of its overall development.
We [are] currently producing what are fairly
small amounts of coal, fve to 10,000 tonnes a
month. Since we acquired the mine a little over
a year ago weve pursued a twin track strategy:
frstly to continue production from the existing
mine, he says.
Mozambique wants it to continue to produce
69 AUGUST 2011 The African Business Journal
70 RESOURCES Beacon Hill Resources
and weve refurbished it [to do so]. Also in terms
of our overall strategy, its important for us to
maintain our frst mover advantage, particularly
in securing access to the logistics.
In parallel with this strategy, BHR has been
working to develop a larger open pit mine aimed
at producing approximately 4 million tonnes a year
run-of-mine and 2.35 million tonnes a year of sale-
able coal, with about one million tonnes of that
made up by coking coal. The miner has already
completed drilling across the entire project, tak-
ing the whole mineable resource from 25 million
tonnes to 57 million tonnes, and in effect more
than doubling the mine life from eight years to 15.
Were on course to be in production from
the frst quarter of next yearsimilar timelines to
Vale and Riversdale, Lewis says.
As part of existing production, weve also
just completed the installation of a small wash
plant which will have capacity of about 120
tonnes an hour, or if you ran it at full pelt about a
million tonnes a year.
During the next 12 months leading up to open-
ing the larger open pit, BHR will produce exportable
grade coal with these facilitiesperhaps even by
the beginning of July. This plant will meet the proj-
ects requirements until the larger pit comes into
play, and the company will construct a larger wash
71 AUGUST 2011 The African Business Journal
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Communicatons provider to Beacon Hill and Randgold Resources
plant in time for that, with a capacity of about four
million tonnes a year, by early to mid-2012. In ex-
amining the way Minas Moatize and BHRs related
infrastructure will expand, and looking at the wider
regional requirements of the many setting up shop
in Tete, it becomes clear quite how important it is
that BHRs core project continues to develop: It is
through following Minas Moatize that a lot of Tetes
future mining will take place.
More coal, more access and growth for
BHR
Whether youre a new arrival, old hand, large proj-
ect planner or minor involvement party in Tete, it
appears that general consensus for future coal
exports trends towards going via rail-to-port. Lewis
says that BHRs long-term ambitions are the same,
focused on transporting its coal to the port of Beira,
and couldnt be better timed given the plans for
upgrades and extension work taking place.
Importantly, were looking at exporting a maxi-
mum of about two million tonnes a year of coal,
and most of that will end up in India. For us, Beira
can be a long-term solution because although its
a shallow port, and exporting coal to India that only
tends to have shallow ports too, he says.
[Other larger project companies] need to
be able to load direct onto cape-size vessels,
72 RESOURCES Beacon Hill Resources
particularly when they get up to large volumes,
and thats why theyre looking at developing other
ports. In the short-term were also about to com-
mence trucking coal to Beira any day now.
With the railway line slightly behind schedule,
with refurbishments taking place up until Sep-
tember-December this year, BHR has a 500,000
tonnes per annum trucking plan in place to
commence initial export quickly; a little more
expensive than using the rail straight away, but
as Lewis says, with coking coal you do have quite
a lot of margin in what youre doing. Of the funds
raised in April, about half has gone towards the
Tete logistics chain, in keeping with the compa-
nys ability to move quickly and retain frst-mover
advantage. At the same time as this balance of
funds, the company entered a Memorandum of
Understanding (MOU) to acquire an additional li-
cense area nearby named 1165 (1165L), about
40 kilometres east of Moatize.
We think its an interesting one because its
in the Moatize Basin where known coking coal ex-
ists, its surrounded on three sides by Riversdale,
and on one side by another license area with
a known billion ton coking coal resource on it,
Lewis says.
Theres an estimated resource of about 400
million tonnes of coal, although thats a non-
JORC estimate by the vendors. The MOU allows
73 AUGUST 2011 The African Business Journal
us to acquire that area for $42 million, so $10
million of the funds raised provides the equity
portion of that and were in the process of fnal-
izing that acquisition and its debt funding.
Once again, the group has used its initial po-
sition to expand and gain greater access to more
coal. By bringing its holding into production in
conjunction with expanding upon its logistics, it is
poised to develop an ever more signifcant-size of
operations.
Clearly in terms of Beacon Hill, it turns us
from what might be seen as a fairly niche player
with an operating mine into a strategic player in
the region with a combined resource of north of
500 million tonnes, Lewis says.
We think that puts us in a better position than
someone coming in three or fve years time.
Still moving frst
At the earlier stage Arthur Magnesite project in
Tasmania, BHR is about to fnalize the scoping
study. Lewis says that critical licensing has been
put in place and a small drill program alongside the
now-complete study will run until August/Septem-
ber. At that stage, the company will begin looking
at developing a project and going about fnding the
right partner in the process. On track for production
within 24 months, it appears that Arthur Magnesite
may well be BHRs next success storyafter Minas
Moatize and global appreciation of Mozambican
coal industry, of course.
Ive been in and out [of Mozambique] in the
last few years, and its developed enormously.
The speed of change in the last few months
makes you very hopeful about the next 12
months, Lewis says.
We sit right in the middle as the only produc-
ing mine and have many strategic advantages,
giving us a great platformand demonstrating
to some extent 1165 and growing and adding to
thatand also it makes us an exciting potential
opportunity to other people who might want a
foothold in this region.
BHRs imprint on Mozambiques growing coal
industry has and will be incremental to its future
success. In addition to getting in frst as a com-
pany and prospering from that, it has provided
many of the building blocks that will open the
region up for future activity. In a matter of days
the Minas Moatize mine will commence export,
offering a vital new source of coking coal as
global demand from the steel industry continues
on strongly. The Arthur Magnesite project will be
the next chapter, and given the way the Mozam-
bique episode already reads its going to be a
very exciting story. TAB
www.BHrplc.cOM
creATing An AfricAn
Business HuB
074
creATing An AfricAn
Business HuB
MunicipAl
76 MUNICIPAL City of Cape Town
Cape Town continues to build and develop,
which to some would seem surprising
considering it is only a year after the city
played a large and somewhat expensive
role in hosting the FIFa World Cup, and
that the world is still recovering from a
recession.
BuT fOr sOuTH Africas second city, infrastruc-
tural projects and property developments are
moving ahead, and in many ways because of the
work of the citys municipal authority.
Andre Human, who is the manager for acqui-
sitions and disposals for the City of Cape Town
municipality, says of his role: I buy properties as
required by the city and also sell properties no
longer required by the city. The City is continu-
ing with the expansion of its public transport
project (BRT) and there are also a number of
bulk infrastructure expansion (roads, sewer and
water) projects that require the acquisition of
land by the City. With regard to the sale of proper-
ties, there is still opportunity to selectively place
properties onto the market for developmental
purposes.
Human says the City of Cape Towns mission
statement is frst and foremost about trying to
be an effective administration with a well-main-
tained and managed asset base.
What my department does is to ensure that
we put our properties to the best use, Human
explains. We also rent out some of properties and
we have a rental portfolio worth about R55 million.
We also sell properties to NGOs or we rent
properties to support community and social
work such as crches, religious site and those
kinds of things.
In taking vacant sites across the city and trans-
forming them through public-private investment
projects, or through sale to private investors, Hu-
mans department is playing a very important role
in Cape Town, ensuring that the sites no longer
required by the Citys authority are put to good use.
A role in society
The money raised comes back into the cof-
fers of the city, Human says of plot sales made
by the department. Sometimes some of the
income is offset against infrastructure improve-
ments such as roads, electricity, or bulk public
upgrading, for example.
With its work with NGOs and local charities
taken into account, Human says that he under-
stand the public value of his departments work.
We play a very strong social role in terms of
our properties and we also have an economic role,
he notes. This economic role is especially true in
our previously disadvantaged areas, where our city
77 AUGUST 2011 The African Business Journal
has sold properties in order to create job opportuni-
ties and investment opportunities.
Weve also created quite a lot of retail and
housing development opportunities, which we
facilitated by getting developers on board in a
partnership.
One such example, cites Human, is that of
Khayelitsha Mall, a 17,225 metres squared retail
centre in the Khayelitsha Central Business Dis-
trict (KBD), which has bought business activity to
an area that was in dire need of investment.
Developed at a cost of R86.5 million and
offcially opened back in November 2005, the de-
velopment of the retail centre was a partnership
between the City of Cape Town, the Khayelitsha
Community Trust and Rand Merchant Bank.
The centre was originally occupied by 51
retailers, but had to be immediately expanded
due to a high demand for trading space; by June
2006, an additional 2,000 metres squared of
retail space had been constructed, bringing the
total cost of the development to R110 million.
At the moment, the department is busy work-
ing on the expansion of the citys conference
centre, in a project designed to strengthen Cape
Towns appeal among business tourists.
Each of our projects has a different focus
and strategy, and although our primary focus is
78 MUNICIPAL City of Cape Town
on upgrading and uplifting our own communities,
there are also projects that are aimed at bring-
ing people into our city and thereby to strengthen
our tourism sector and create employment to our
people, says Human.
With much help from Humans department
in terms of land acquisition and investment,
the Cape Town International Convention Centre
(CTICC), the continents most successful con-
vention venue, is currently planning a massive
multi-billion rand expansion that will include, in
collaboration with the provincial government and
the private sector a new hotel, private hospital
and retail facilities.
Situated along the beach in Blouberg, the
department also had a huge hand in bringing the
Big Bay development to fruition.
The land was sold by the City on public ten-
der to various individuals and developers and
the property was packaged (zoned, subdivided,
bulk services provision, etc.) in a partnership
arrangement between the City and develop-
ment frm Rabcav.
The development consists of 450 single,
500 group housing and 395 sectional title
units, as well as 10,000 metres squared of
commercial development and a mix-use devel-
opment incorporating retail, restaurant, offce
and residential units.
Another notable development it has been
involved in is the Galleria Developmenta R1.5
billion 110,000 metres squared mix-use devel-
opment in the Tyger Valley area of the city. As
part of the transaction, the developer Devmet
Properties will also manage and maintain
Council-owned facilities located on an adjacent
property.
Downturn and duty
Of the recession, Human says that Cape Town
certainly felt the pinch.
We had a number of projects that were
not successful in the sale, but there are still
79 AUGUST 2011 The African Business Journal
opportunities, he notes. In previously disad-
vantaged communities where there had histori-
cally been very little investment, there are still
opportunities, and we have found ourselves
concentrated on these opportunities.
What is diferent in our role
compared to a private sector
companys role is that for us its
not only the bottom line, he
enthuses. In Cape Town where
we have quite diverse communities,
including some very rich and some
very poor, one has to take into
consideration these elements, and
while we have learnt many lessons
along the way, we have continued
to improve the service were
ofering.
Human says that he has been very fortu-
nate to have been working in his feld for the
past 20 year, and is grateful of the chance to
have played a role in facilitating such an offce.
There is certainly the chance of spreading
such a concept as our department out to other
municipalities across South Africa, he enthus-
es. What we do is very much internally orien-
tated in terms of looking for opportunities for
Eris Property Group is
proud to be associated
with the City of Cape
Towns ongoing
development initiatives
www.eris.co.za
Tel : (011) 775-1000
our local people and creating social prospects
and facilities through the proper utilisation of
the Citys assets.
With this in mind, along with the local gov-
ernment authoritys commitment to making the
most of the investment and development oppor-
tunities available to it, it is surely only a matter
of time before the model of the Citys property
management department is replicated in munici-
palities across the country. TAB
www.cApeTown.gov.zA
pArk life
South africas national Parks
Joint ventures at South african national Parks prove
that private and public sectors can live in harmony
080
pArk life
South africas national Parks
Joint ventures at South african national Parks prove
that private and public sectors can live in harmony
080
MunicipAl
82 MUNICIPAL SanParks
wHile MAn HAs crafted some impressive specta-
cles in the last few centuries, it is Mother Nature
that still remains the most accomplished and
envied architect.
Among her fnest achievements are the intri-
cately sculptured landscapes, captivating pan-
oramas, vivacious vistas and awe-inspiring wild-
life of South Africas National Parks (SANParks).
It is perhaps ftting that a country whose history,
vibrancy, colour and diversity resonates so pro-
foundly in this majestic region.
Every year thousands visit the parks hoping to
set eyes on the cornucopia of spectacular wildlife.
All manner of creatures, including lions, leopards,
elephants, rhinoceros, buffalo, various antelopes
and baboons, still traverse the stunning terrain,
allowing visitors a truly unforgettable experience.
Partners
In recent years SANParks has been expanding
its operations through its Public-Private sector
partnerships (PPP) involving eco-tourism, as
defned in the Public Finance Management Act
(PFMA) regulations. These initiatives include the
provision of accommodation, restaurants, retail
platforms and activity-based projects.
83 AUGUST 2011 The African Business Journal
84 MUNICIPAL SanParks
The exciting development of PPPs have al-
lowed SANParks to boldly branch out into new
markets, improve effciencies, create valuable
jobs and have a much wider product range.
While lodge concessions have allowed SANParks
to venture into fve-star luxury catering for the
eco-tourism market and, with good conserva-
tion management, draw experts in several felds.
The accommodation options have also been
increased by the Golden Kudu initiative which
offers concessions, making sure the parks can
be experienced by people from all walks of life.
Within the lodge concessions, environmental
management is very stringentlike establish-
ing exactly what the optimal water consumption
should be. This productive brand of environmen-
tal management meets the highest expectations
in the industry.
85 AUGUST 2011 The African Business Journal
With such a seductive product it is easy to
see why SANParks has also formed some equally
fruitful relationships with private sector organ-
isations, including construction companies and
architects. This fexibility reinforces its dynamic
outlook and has a noticeably positive impact on
to the local economy.
Progress
In addition to tourism, accessibility has rapidly
increased, with about 500 extra top-of-the-range
beds for customers. The shops and restaurants
have become more effcient and attuned with
market needs. In total, the PPPs have created
over 1,800 jobs and the fgure is expected to
continue rising over the next few years.
For the more intrepid anthropologist SAN-
Parks cable car at the Table Mountain National
Parks is another PPP project that is reaping
rewards. It entices vast numbers of tourists from
all over the world and enables them to climb the
legendary face without assistance.
PPPs have also given rise to non-tourist visi-
tation access, allowing business partners to use
the facilitiessuch as the conferencing suites, in-
ternet cafes and information centresduring joint
86 MUNICIPAL SanParks
THere Are lOADs Of AcTiviTies fOr sAnpArks visiTOrs
The Ais and Richtersveld trails are only accessible in robust 4x4 vehicles and are very popular
with adventurous travellers.
Self drives allow guests the freedom to enjoy nature and relax in a pristine environment,
creating their own journey through one of the many incredible parks.
Impressive Beaches can be located at Agulhas, Knysna/Wilderness, Namaqua, Table Mountain,
Tsitsikamma, West Coast and the splendidly named, Addo Elephant.
There are several back-pack and slaak-pack trails available at the parks. Krugers Mphongolo
and Olifants jaunts are particularly popular.
For explorers with an appetite for the extreme, canoe trails take place over three days at
Wilderness, the Golden Gate, Tsitsikamma (Natures Valley) and Knysna.
Mountain Biking is also permitted in a number of parks. Reassuringly, the tracks are in areas
where animals do not pose a safety threat to riders.
Its perhaps not the first place youd think of for conference facilities but what a location to
have that sustainable development meeting! They are of varying capacity and can be found at
many different parks.
Those interested in the history of the parks will enjoy the historical exhibits that are
punctuated throughout.
Other ways of expending energy include horse riding, golf, motorcycling, sailing, tennis and
even snooker!
HiDDen TreAsures
ventures. Meanwhile, there are a number of re-
searchers, MBA students and other parksboth
in the South Africa Region and overseasthat tap
into SANParks methods and knowledge.
Impact
The Head of the SANParks Business Development
Unit, Giju Varghese sees the partnerships as a
vital cog in the parks machinery. Large projects
and the partnerships with external Private Parties
provide us with great opportunities to meet busi-
ness objectives. It is also very rewarding when a
small company gets into a partnership with us
for the frst time and after a few years builds into
something really impressive; creating jobs and
raising revenue, says Varghese.
87 AUGUST 2011 The African Business Journal
The success of PPPs and partnerships
in general has been the combination of good
business skills and the meticulous setting of
requirements, he added.
The overall impact of PPP initiatives on the
animals that populate the region is minimal,
however, the added funds from such projects
has prompted a great improvement in policing
the parks, improving safety, legislating against
poachers and ensuring that the wildlife continue
to thrive in their natural habitat.
In the fnal analysis it is perhaps worth
remembering that all tourism projects, however
modern, desirable or indulgent, only exist for
the protection of these enduring parks - and you
cant put a price on that. TAB
www.sAnpArks.Org
odd as it may seem, if Sembcorp Siza can feel the business
trickling through its fngers, then its been a good day
wATer wOrlD
Sembcorp Siza
088
odd as it may seem, if Sembcorp Siza can feel the business
trickling through its fngers, then its been a good day
wATer wOrlD
Sembcorp Siza
088
MunicipAl
90 MUNICIPAL Sembcorp Siza
THere Are MAny industries that claim, rather fan-
cifully, that without its product the human race may
stop functioning, or worse still, the planet might
shudder to a halt and fall hopelessly off its axis. In
the case of Sembcorp Siza it is a statement that,
on closer inspection, holds a lot of watertonnes
of it. Six million cubic metres per day to be precise!
Running water
Sembcorp Siza Water has been a trusted global
water service provider for the last 13 years, rising
through the ranks to become one of the worlds
largest water management companies. It meets
the water needs of communities, governments
and industries, with water and wastewater opera-
tions across the globe, including Africa, the U.K.,
Caribbean, Chile, China, Indonesia, Vietnam, Indo-
nesia and Singapore. It is a truly global phenom-
enon, with further expansions on the horizon.
It is also a proud pioneer in the provision of
energy, industrial water and on-site logistics. Its
impressive track record in treating high concen-
tration and high salinity industrial wastewater is
second to none in the industry.
The company also offers a full spectrum of
vessel-related services from ship repair,
91 AUGUST 2011 The African Business Journal
shipbuilding, ship conversion, rig building to off-
shore engineering and construction, including
topsides fabrication.
Quenching
A provider of innovative solutions for clean and
sustainable water, Sembcorp manages facilities
capable of producing and treating over 6 mil-
lion cubic metres of water and wastewater daily,
serving more than 5 million people worldwide.
From the supply of portable and industrial wa-
ter to specialised industrial wastewater treatment,
water reclamation and desalination, the company
provides a comprehensive array of effective solu-
tions to meet most water-related challenges.
Sembcorps friendly relationship with its cus-
tomers, seeing them very much as partners, has
been instrumental in creating a winning formula.
The unique and impressive group strength and
sector experience enables Sembcorp to improve
the quality of life of their customers, while striv-
ing to improve the businesses.
Sembcorps water business is actively play-
ing a part in providing sustainable water solu-
tions in order to meet the growing needs of the
industry and, in particular, emerging economies.
92 MUNICIPAL Sembcorp Siza
This includes the signifcant reduction of water
operations on the environment.
Tech-yes
Water is arguably the oldest liquid known to
man but in order to manage it, in a way that
satisfes the human races insatiable thirst for
hydration, food preparation, swimming pools
and mineral water, modern methods have to be
embraced. Sembcorps has always put a great
emphasis on the importance of technology and
innovation when delivering the best, effcient
and most up to date water services.
As a business, its continued drive for cutting-
edge technology also encourages the optimal
performance of existing facilities and processes,
while actively using energy more effciently. This
ultimately means better use of resources, lower
costs, better safety performance and a signif-
cantly reduced environmental impact.
Additionally, Sembcorps operations are
supported by a dedicated in-house technology
department, which constantly monitors techno-
logical advances, applying them regularly to the
current systems. There are also vital research ar-
rangements and collaborations with local tertiary
93 AUGUST 2011 The African Business Journal
research institutes and water technology compa-
nies. These excellent relationships are fostered
through a mutual respect for water and a passion
for the advancements in its treatment.
One of these partnerships is the ongoing
collaboration with Nanyang Technological Univer-
sitys Environment and Water Research Institute,
which involves the exploration of new technology
to remove recalcitrant organic materials from
complex industrial wastewater. Pulling together
these extensive intellectual resources has contin-
ued the push for technology, sustainable growth
and a prosperous future.
To complete a remarkable few years Semb-
corp was named the 2011 Global Water Awards
Water Company of the Year and with total assets
of over S$10 billion (over US$8 billion) and em-
ployee numbers of over 9,000, the fgures cer-
tainly add up. Going with the fow has never been
such good advice. TAB
www.seMBcOrp.cOM
OuT Of AfricA
John Pinching takes a lingering look
through the lens of african-infuenced cinema
094
over the last eight decades africas rich tapestry of inspirational,
tragic, shocking, beautiful, timeless and romantic tales have been
emblazoned on movie screens across the world. Whether based
on truth, legend or pure fction, its diverse landscape, culture and
history provide an intoxicating cinematic cocktail.
OuT Of AfricA
John Pinching takes a lingering look
through the lens of african-infuenced cinema
ArTs & enTerTAinMenT
96 ARTS & ENTERTAINMENT out of africa
attached, Bogarts character, Charlie Allnut, in
the John Huston-directed African Queen (1951)
is a signifcant departure from Rick. Charlie is
a gnarled riverboat captain, during WWI, whose
sole purpose is to consume as many units of gin
as possible, while avoiding German artillery.
When a British lady from the Methodist mis-
sionary makes his acquaintance, he is persuad-
ed to go on an ill-advised journey down river in
Heres looking at you
AlTHOugH DOzens Of flms had been made in or
about Africa, such as the Tarzan canon, its poten-
tial to captivate audiences on the silver screen
was only realised in two very different flms star-
ring Humphrey Bogart (and he wasnt wearing a
loin cloth in either).
The ground-breaking Casablanca (1942) saw
Bogarts Rick as the very embodiment of cool.
Heroic, hard drinking, superbly attired, universally
admired and blessed with an astonishingly crafted
and highly quotable dialect; he oozed unobtainable
class. There is one aspect of Rick, however, that
guarantees his iconic status; he is a tortured soul.
As the title suggests, Bogart is situated in he-
donistic Casablanca, Morocco, during WWII. He
is the proprietor of a bustling Caf Bar in which
patrons come to drink, gamble, listen to Sams
piano and generally fraternise.
Beneath this suave faade Rick hides his
affliation with the resistance and a past flled
with regret, however, when a beautiful woman
(played by the captivating Ingrid Bergman) turns
up at the caf he is forced to acknowledge his
true feelings, romantically, politically and, indeed,
musically. Casablanca remains a classic tale of
unwavering commitment to an ideology and poi-
gnant human sacrifce.
Although his hairpiece remains steadfastly
97 AUGUST 2011 The African Business Journal
order to launch a surprise attack on the enemy.
On location in the Congo, and presented in Tech-
nicolor, the flm exquisitely captures the beauty,
wildlife and volatile terrain of Africas wilderness.
Coming of age
Although in the past there have been many impres-
sive African adventures in cinema, it has only been
in the last decade that consistently brilliant Africa-
inspired stories have been committed to celluloid.
In 2006 Kevin MacDonalds The Last King
of Scotland scorched an indelible impression
on audiences and critics alike, as a notorious
chapter in Africas history exploded onto the big
screen. Set in the early 1970s it is based on
Giles Fodens brilliant novel in which true facts
about psychotic dictator Idi Amins brutal regime
in Uganda, are daringly mingled with fantasy to
create a potent and unforgettable narrative.
Forest Whittaker delivers a genuinely intimidat-
ing performance as the simmering, brooding and
terrifying Amin. Disturbingly, the portrayal is at once
sickening and humourous, as the leader switches
between horrendous acts of violence against his
people and a bizarre love of all things Scottish.
This included his physician, Dr. Nicholas Gar-
rigan, played by housewifes favourite and quintes-
sential Scotsman James McAvoy. Amin forms a close
relationship with the medical graduate, who though
seduced by his glamorous title, remains obedient to
the strange, all-consuming grip of fear in which all
Amins considerable workforce tries to function.
In one particularly bizarre episode the phy-
sician relieves his masters fatulence with a
baseball bat and it is scenes like this thatin a
strange wayserve to emphasise the delusional
behaviour that characterised Amins reign.
Blood Diamond (2006), studies the highly
98 ARTS & ENTERTAINMENT out of africa
dangerous black market in precious stones. The
flm uses the visual poetry of Africa as a back-
drop for a desperate and corruptive artery that
runs throughout the continent, promising hope
but, all too often, creating chaos and despair.
Danny Archer, played by Leonardo DiCaprio,
is hell-bent on fnding the blood diamond that
will make him a fortune, despite being surround-
ed by the anarchy of civil war, a brutal regime in
Sierra Leone and the foul stench of death.
After Danny strikes a deal with a native, who
knows the whereabouts of a diamond, the pair
try to negotiate a journey through hell. Eventually,
when the task appears fruitless, Danny starts to
sympathise with his partnerwho has been sepa-
rated from his family during the carnageand an
unlikely bond is formed.
The flms overriding messages about moral-
ity, justice and the impact of greed on individuals
and entire nations, leave a profound impression.
It is the redemption achieved right at the climax,
however, which is most satisfying.
Perhaps the most disturbing flm to emerge
in recent times is the relentlessly harrowing Hotel
Rwanda (2004). When the rest of the world turns
a blind eye to the harrowing acts of genocide
and ethnic cleansing, which are costing the lives
of thousands in Rwanda, an ordinary hotel man-
ager decides to take matters into his own hands.
Paul Rusesabagina played by Don Cheedle (his
African is much more convincing than his London
accent) uses his position to bribe infuential people,
allowing him to smuggle Rwandan refugees into the
hotel and relative safety. As the civil war erupts Paul
puts his own life in jeopardy by convincing murder-
ous soldiers to look elsewhere. Despite huge risks
his bravery is fnally rewarded as his family, and
many others, manage to escape.
Following these modern masterpieces, there
has been a steady stream of Africa-based flms
such as Invictus (2009), which documents Nelson
99 AUGUST 2011 The African Business Journal
AfricA On screen
Over the years there have been many
films with an African flavour that, in one
way or another, broke the mould
zulu (1963)
Its 1879 and the relatively unknown
Michael Caine aims to restore some order
to a thin red line of Welsh infantryman.
With no sign of assistance the motley crew
prepare themselves for the onslaught of
4,000 furious African warriors, baying for
their blood.
cArry On up THe Jungle (1970)
Possibly the first and last ornithological
romp through the wilds of the African jungle
(Pinewood Studios). Joan Simsably assisted
by Sid James and Frankie Howerdsets
about discovering her long lost son; a rotund,
scantily clad, vine swinger, played by Terry
Scott. Hilarity ensues.
OuT Of AfricA (1985)
Meryl Streep plays Karen Blixen who
has married in order to gain a title. The
couple move to Africa where her husband
commits adultery and gives Karen an STD
(charming!). Disillusioned, she starts to
embrace African culture and a perpetually
soft-focused Robert Redford instead.
THe liOn king (1994)
This feature length animation from Disney
perfectly captures the atmosphere,
ambiance and rhythm of Africa. Lion cub
Simba pulls at the heartstrings as he
embarks on his journey to become king.
Elton Johns rousing finale ensures that
everyone leaves in tears.
Mandelas agenda to dismantle apartheid, cul-
minating in South Africas victorious 1995 Rugby
World Cup campaign. For the less demanding
viewer Africa United (2010), follows a group of im-
poverished kids as they walk to the FIFA World Cup.
Perhaps what unites all these flms is the
central message that, no matter how bleak the
situation, retaining a sense of hope can truly
infuence the dream of a brighter future.
If you have never got round to watching these
inspiring movies you might regret itmaybe not to-
day, maybe not tomorrow, but soon TAB
Poprica!
In the frst episode of a new series we prepare our
cultural drill to mine through Africas infuence on
western music sensibilities. This time the juke box
yields three nuggets of pure platinum pop
p
A
r
T


O
n
e
Poprica!
ArTs & enTerTAinMenT
p
A
r
T


O
n
e
102 SECTION Title
Race riots were a regular occurrence, Mandela was behind bars, civil war was blighting lives and apartheid was tearing Africa apart
literally. Who the hell was going provide a voice of reason? With the lily-livered politicians diving for cover, Bob Marleys dulcet tones
emerged, accompanied by a bodacious reggae track. As the song title suggests, this is a record that calls upon the people of Africas many
nations to seek peaceful reconciliation and live in harmony. Arguably Africa Unite said in three minutes what the continents leaders had
failed to transmit in a thousand years. Babylon!
AfricA uniTe (1979)
By BOB MArley AnD THe wAilers
As soon as the haunting heartbeat drums start you are transported to Africaalbeit with a load of new romantic pop stars wearing makeup.
The original version of this legendary disc was a direct response to the horror unfolding in Ethiopia, where thousands were starving to death.
The record sales helped to save countless lives and made Bob Geldof a hero. Many stars (and Paul Young), contributed solos, including
George Michael, Boy George and, most quotably, Bono who screamed, Tonight thank god its them, instead of you.
DO THey knOw iTs cHrisTMAs (1984)
By BAnDAiD
Before the grotesque aberration of girl power, there were a number of female singer/songwriters who didnt feel they had to wear daft
clothes and adopt preposterous pseudonyms to get noticed. Among these was Neneh Cherry, whose thought-provoking lyrics and impactful
voice combined majestically with the vulnerability and honesty of her collaborator Youssour NDoura successful African singer from
Senegal. The song, which movingly describes the first innocent moments of a childs life, was a massive international hit.
seven secOnDs (1996)
yOussOur nDOur AnD neneH cHerry
nexT MOnTH we cOnTinue Our JOurney, wiTH cOnTriBuTiOns frOM AfrikA BAMBAATAA, sTevie wOnDer AnD, curiOusly, THe BAngles.
103 AUGUST 2011 The African Business Journal
Race riots were a regular occurrence, Mandela was behind bars, civil war was blighting lives and apartheid was tearing Africa apart
literally. Who the hell was going provide a voice of reason? With the lily-livered politicians diving for cover, Bob Marleys dulcet tones
emerged, accompanied by a bodacious reggae track. As the song title suggests, this is a record that calls upon the people of Africas many
nations to seek peaceful reconciliation and live in harmony. Arguably Africa Unite said in three minutes what the continents leaders had
failed to transmit in a thousand years. Babylon!
AfricA uniTe (1979)
By BOB MArley AnD THe wAilers
As soon as the haunting heartbeat drums start you are transported to Africaalbeit with a load of new romantic pop stars wearing makeup.
The original version of this legendary disc was a direct response to the horror unfolding in Ethiopia, where thousands were starving to death.
The record sales helped to save countless lives and made Bob Geldof a hero. Many stars (and Paul Young), contributed solos, including
George Michael, Boy George and, most quotably, Bono who screamed, Tonight thank god its them, instead of you.
DO THey knOw iTs cHrisTMAs (1984)
By BAnDAiD
Before the grotesque aberration of girl power, there were a number of female singer/songwriters who didnt feel they had to wear daft
clothes and adopt preposterous pseudonyms to get noticed. Among these was Neneh Cherry, whose thought-provoking lyrics and impactful
voice combined majestically with the vulnerability and honesty of her collaborator Youssour NDoura successful African singer from
Senegal. The song, which movingly describes the first innocent moments of a childs life, was a massive international hit.
seven secOnDs (1996)
yOussOur nDOur AnD neneH cHerry
nexT MOnTH we cOnTinue Our JOurney, wiTH cOnTriBuTiOns frOM AfrikA BAMBAATAA, sTevie wOnDer AnD, curiOusly, THe BAngles.
eagleBurgmann Seals
seAling
AfricAs
ApprOvAl
cOMpAny fOcus
104
eagleBurgmann Seals
106 COMPANY FOCUS eagleBurgmann Seals
as the hunt for resources sharpens its focus
onto the african market, stronger economic
conditions are leading many european-based
frms to set up shop on the continent. Within
the seals industry this is no diferent as one
industry giant is proving in South africa.
fOrMeD As THe result of an alliance between
Burgmann Industries and Eagle Industry, Eagle-
Burgmann started life as a new entity in 2004.
Eagle Industry roots lie in the Mechanical Seal
Division of Japans NOK Corporation, while Fe-
odor Burgmann was founded in the German city
of Dresden in 1884 to supply technical articles
after the companys founder invented the frst
machine-braided, self-lubricating stuffng box
packing solution.
The history of EagleBurgmann Seals South
Africa dates back to before the 2004 alliance to
1984, where it started life as a sales and service
centre, before being transformed into a fully-
fedged manufacturing facility.
The South African subsidiary follows the global
traditions and ethos of the parent company, but
with a touch of African fair, remarks Eagle Burg-
mann Seals managing director Paul van Wyk.
Today, the South Africa entity employs more
than 100 people, has offces across the country
and operates throughout Africa in conjunction
with numerous partner agencies.
Much like its international parent company,
EagleBurgmann South Africa has been involved
in various social and educational projects
across Africa.
There is a particular focus on Angola at the
moment with smaller investments taking place
in Congo, notes van Wyk. South Africa is also
a key focus for us and we are currently working
on a number of projects for refneries and power
generation in the country.
Alongside its community project, the com-
pany offers technical training on its highly-spe-
cialised products and often holds onsite training
sessions with its customers to demonstrate the
ftting of seals, seal inspection and high-level en-
gineering calculations and trouble shooting.
We also have various service centres across
South Africa focused on the repair and installation
of seals onsite, and our service teams regularly
visits key account clients throughout Africa to help
resolve site problems and repair seals, says van
Wyk. We have performed numerous expansion
joint-site installations in Botswana and Mozambique
with large installation crews to meet the normally
tight customer shutdown schedules, he adds.
Changing times
In the past 20 years EagleBurgmann has
107 AUGUST 2011 The African Business Journal
undergone a number of signifcant operational
changes, states van Wyk.
The biggest changes occurred mainly in the
oil and refnery industries where customers have
progressively moved away from gland packing to
mechanical seals, he explains. This was a critical
development, especially in regions where there is a
high emphasis on environmental issues.
More recent trends show the industry in
general moving towards cartridge type seals that
offer large benefts in eliminating installation
problems and improving Mean Time Between
Failures (MTBF).
Alongside these major changes to the busi-
ness, van Wyk cites other newer developments
that have slowly been accepted into the companys
mainstream industry model, including the use of
gas seals in all applications and the more recent
introduction of the award-winning cutting edge tech-
nology of diamond seal faces.
Van Wyk says that the introduction of diamond
seal faces, with its microcrystalline diamond coat-
ing, has revolutionised the companys operations
and the industry as a whole; to date, the product
has won the company three international awards.
DiamondFaces are indispensable in applica-
tions where seals have to withstand dry running,
mixed friction and abrasive media, he notes. A
108 COMPANY FOCUS eagleBurgmann Seals
diamond coating of 8 micrometres makes the
seal faces extremely hard and wear resistant,
while other outstanding features include excel-
lent heat conductivity, maximum chemical resis-
tance and low friction.
With its vibrant and innovative history it is
perhaps no surprise the company found itself
in a relatively comfortable position during the
recent fnancial crisis.
By embarking on an effciency drive a few
months prior to the economic downturn, the com-
pany was able to buffer the early effects of the
crisis and was able to shift its emphasis towards
the protection of its cash fow.
A large amount of effort was placed on stock
holding, which in turn had a positive effect for our
customers, says van Wyk. The stock focus al-
lowed EagleBurgmann South Africa to better pre-
dict stock usage thus eliminating stock outs.
Additional added value was that sales people
were required to understand our customers busi-
ness better to accurately identify stock usage,
which in turn led to closer relationships between
EagleBurgmann and its customers; in all its been a
win-win situation for all participants, he adds.
A continent-wide focus
With its forward-looking approach, the South
African entity has embraced 10 years of change
within a country that has become the fnancial
and technological powerhouse of Africa.
South Africa is the perfect springboard
into African states and South Africans are being
warmly welcomed into almost all African states
something that was certainly not the case 15 to
20 years ago, says van Wyk.
The worldwide demand for oil and gas has
led to the resurgence in African projects to ex-
109 AUGUST 2011 The African Business Journal
ploit these natural resources, and while some
countries are more exciting than others due to
civil unrest or corruption, Africa has generally
settled down and is a much safer place to do
business than it was some 20 years ago.
Opportunities abound for companies willing
to invest into the current opportunities and we
have prioritised growth into Africa as one of our
growth strategies, he remarks.
EagleBurgmann Seals South Africa now has
some form of representation in all of Sub-Saha-
ran Africa, but is continuing to look for local sales
people to represent the company across this
diverse continent.
Our three-year plan is to establish service
centres in major oil centres across the continent
and our long-term goal is to developing these
into separate entities, says van Wyk. Internally
there are numerous projects on improving ef-
fciency within the organisation and large capital
investments have taken place that have been
planned for the following three years to upgrade
the manufacturing and service areas into world-
class facilities.
Along with its territorial expansions plans
across the continent, van Wyk says the company
is continuing to place a large amount of its empha-
sis on providing safe working environments for its
employees as well as minimising the impact of its
manufacturing facilities on the environment.
Our focus is to better understand the custom-
ers needs through a formalised sales process as
we look to provide added value. Put simply, we want
to continually improve our performance by servicing
our customers with leak-proof sealing solutions, he
concludes. TAB
www.eAgleBurgMAnn.cOM
GanTrans
BuilDing Business pArTnersHips
cOMpAny fOcus
GanTrans
BuilDing Business pArTnersHips 110
112 COMPANY FOCUS GanTrans
esTABlisHeD MOre THAn 40 years ago, GanTrans
represents one of the longest operating road
transport companies based in KwaZulu-Natal,
and today has grown from a single unit to an
impressive feet that includes 84 units. GanTrans
was founded in 1963 with a vision to secure sev-
eral valuable transport contracts.
As the company developed, acquisitions
of new tankers and additional equipment al-
lowed GanTrans to expand with a brand new
GanTrans, a South african based logistics company, specializes as industrial and commercial
haulers, harbour carriers, and bulk transporters.
113 AUGUST 2011 The African Business Journal
Bulk Tanker Division. Today, the company is
the leader in transporting hazardous materials,
such as containers, ISO containers, as well as
bulk handling of lube oil and solvent, in addition
to truckloads of chemicals, pallets, machinery,
sugar, and other cargo.
Skills development
According to the companys website, GanTrans
attributes its effective operation to a variety of
factors, including employment equity (removing
discrimination from employment policies and
practices) and skills development (maximizing
the potential of its employees through knowledge
and skills, having employees work productively
and competitively, and by setting in place the high-
est of operational plans to achieve this standard).
GanTrans best equips its staff in driver
training, legal training, health and safety, and
product knowledge. As such, the No. 1 priority at
GanTrans is to maximize the potential of its em-
ployee group through knowledge, skills training,
and by encouraging its staff to work productively
and competitively.
GanTrans also subscribes to Broad-Based
Black Economic Empowerment, whereby the
114 COMPANY FOCUS GanTrans
company focuses on the South African economy
and concentrates on economic wealth and in-
equalities in employment, education, and skills.
GanTrans contributes and continues to focus
on developing employee skills at all levels through
our employment equity and corporate social re-
sponsibility programs, reads the company website.
Additionally, GanTrans has been active in im-
plementing a user-friendly system to promote the
best in health and safety and the environment.
We endeavour to implement an all-integrat-
ed and user-friendly contemporary system to
promote health and safety and the environment
at the workplace and where ever else our indus-
try and social obligations may lead us, states
the GanTrans website.
Driving its mission
In providing the highest of service, GanTrans
strives for the best in business by applying its
impressive mission statement across all facets of
its business. Accordingly, GanTrans strives to pro-
vide extraordinary, on-target service and quality
to all of its stakeholders, and to invest in its work-
ers through education, training, and motivation.
Additionally, GanTrans engages to develop a
To provide extraordinary, on-target service and quality to all our stakeholders
To invest in our people through education, training and motivation
To embrace the concept of Human Resource Development
To engage constructively with all people in order to develop a unique organizational
culture of positive thinking and dynamic action
To vigorously promote the productivity and profitability of GanTrans
To foster and develop a culture of social responsibility and uplift communities within which
we operate
To enshrine workers rights in our Recognition Agreement, and to demonstrate our support
for the Safety Act and the Labour Relations Act
To earn and maintain a reputation of integrity and honesty from those we serve, and from
those who serve us
Our MissiOn
115 AUGUST 2011 The African Business Journal
unique organizational culture of positive think-
ing and dynamic action, while also fostering and
developing a culture of social responsibility in
an effort to uplift those communities in which
the company operates.
With a team of experienced drivers and a
feet of distinctive vehicles, GanTrans is known
for commitment and on-time reliability, reads
the company website. Strong family values,
integrity and transparency remain the corner
stones of the GanTrans ethos. Customer satisfac-
tion and cutting edge road transport technology
are the driving force of the organization.
Consistencies, professionalism and unwav-
ering commitment to excellence are synonymous
with the GanTrans name, from the management
and sale levels to the dedicated team of drivers,
ensuring that every load reaches its destination
effciently, safely and on time. TAB
www.gAnTrAns.cO.zA
To provide extraordinary, on-target service and quality to all our stakeholders
To invest in our people through education, training and motivation
To embrace the concept of Human Resource Development
To engage constructively with all people in order to develop a unique organizational
culture of positive thinking and dynamic action
To vigorously promote the productivity and profitability of GanTrans
To foster and develop a culture of social responsibility and uplift communities within which
we operate
To enshrine workers rights in our Recognition Agreement, and to demonstrate our support
for the Safety Act and the Labour Relations Act
To earn and maintain a reputation of integrity and honesty from those we serve, and from
those who serve us
Our MissiOn
Exotc and Special-Eect Paints
Automotve & Industrial Paints
Vinyl Upholstery & Carpetng
Compressors & Air Fitngs
Number-Plates & Signs
Clips & Accessories
253 JACOBS RD, JACOBS, DURBAN TEL: 031 450-9000
Filling the well grunDfOs
116
Filling the well
cOMpAny fOcus
116
In the modern world of business, a companys global reach means it
must do more than simply procure profts and uncover new markets,
because with success comes social and environmental responsibility.
118 COMPANY FOCUS Grundfos
DAnisH puMp MAnufAcTurer Grundfos pro-
duces a range of centrifugal pumps and systems
for water applications for industry and irrigation
projects, heating solutions and wastewater treat-
ment plants, and with a global presence that
stretches across 85 countries, the company has
found itself in a position where a responsible ap-
proach to business is essential.
The worlds largest pump manufacturer fol-
lows a mission statement that declares it will
successfully develop, produce and sell high-
quality pumps and pumping systems worldwide,
contributing to a better quality of life and a
healthy environment.
Grundfos has established a market presence
and well-defned distribution base throughout
Africa and from its base in South Africa operates
in 40 countries across the continent. From this
base it is able to provide assistance to some of
the poorest people on the planet.
119 AUGUST 2011 The African Business Journal
Developing more than revenue
Grundfos South Africa was established in 1992
and since that time has built a solid foundation
for economic expansion while maintaining a com-
mitted to the development of social and environ-
mental issues across the continent of Africa.
The entity has enjoyed year-on-year growth
of close to 10 per cent in the past few years and
has major expansion plans in place for all major
economies in Africa.
Grundfos has in place a well-established
distribution base across South Africa, which has
spread into the African continent with a primary
focus on the English speaking countries in both
the east and west of Africa.
Back in November 2005, the Grundfos Group
took over Brisan Turbo (Pty) Ltd., a South African
manufacturer of water supply pumps, and today
the group has grown to employ more than 80 staff
and has an annual turnover of US$9.7 million.
In Africa, where accessibility to clean drinking
water is one of the major problems facing many
communities, Grundfos has made water supply
a priority focus area. The groups focus is also
placed on the commercial building services seg-
ment and the wastewater industry.
120 COMPANY FOCUS Grundfos
In order to provide the best possible service
the company set up a South Africa academy,
providing proof that this global company is com-
mitted to developing the skills and ability of staff
at a local level.
A sprinkling of green
Earlier this year, Grundfos South Africa launched
two new product ranges, CR Flex and MG Flex,
and held an event at the impressive Nelson Man-
dela Bay Stadium in Port Elizabeth that featured
consultants from the green energy and green
building industries among its guests.
Attended by 180 representatives from lo-
cal businesses, governments, distributors and
customers from across Africa, the event gave
guests the chance to get acquainted with a host
of new products including the CR booster pump,
pool pump, SP inverter unit and MG Flex motor
range for solar-driven applications.
Alongside its new greener products, the
company is also playing an active role in social
programmes such as its employer-driven Water-
2Life programme, which operates through volun-
tary action from the companys workers.
The scheme engages employees in activities
that raise awareness of water issues facing some
of the worlds poorest people and looks to raise
donations to provide those less fortunate with
access to safe drinking water.
THe TruTH BeHinD AfricAs sHOrTAge Of wATer
According to the UN, more than half of Africas population lack access to safe drinking water.
More than 80% of disease in developing countries is related to poor drinking water and sanitation.
A staggering 12 million people in Africa die each year from a lack of safe drinking water, the
World Health Organisation claims.
According to Womens Human Rights Net, the average distance a woman in Africa and Asia
walks to collect water is 6 kilometres a day.
International charity Water Aid states that in the past ten years diarrhoea, a condition often spread
by poorly maintained or contaminated water supplies, has killed more children worldwide than
the total amount of people killed in armed conflict during the Second World War.
wiTHOuT wATer
121 AUGUST 2011 The African Business Journal
In taking active responsibility, Grundfos
employees have had a direct impact on poverty
alleviation and have helped thousands of people
in developing countries by providing sustainable
access to water.
Many communities in Africa struggle because
access to clean water is limited, and many wom-
an and children are forced to walk long distances
every day to water sources.
In Egypt one-third of women walk more than
one hour to collect water, while in other parts of
Africa the task can take up eight hours.
By engaging its companies and employees in
a global sustainability programme, Grundfos has
found a way of empowering a vibrant corporate
culture as well as helping disadvantaged popu-
lations by providing them with easier access to
clean water.
While the company is noted for its innovative
and intelligent products, this global manufactur-
ing giant hopes to be known for more than the
water pumps and systems it deliveries by supply-
ing communities in need with access to the water
they require. TAB
www.grunDfOs.cOM
TAking THe sTress OuT Of MOving
h&M removals
TAking THe sTress OuT Of MOving
122
cOMpAny fOcus
Since it was established in 1992, h&M removals has continued
to help improve standards in the South african removal business.
124 COMPANY FOCUS h&M removals
willing AnD ABle to undertake any household,
offce and commercial distribution job, H&M of-
fers a range of services that include offce and
household moves, storage solutions and inter-
national relocations.
The company offers its customers the oppor-
tunity to take the stress out of moving and offers
free quotations on its services, as well as reloca-
tion tips and advices from its in-house expert.
The company has bases in Airport Industria
in Cape Town, Elandsfontein in Johannesburg
and Westmead in Durban, and has in the past
19 years expanded rapidly and continued to grow
stronger every year.
H&M says that based on its own varied ex-
perience it can be relied upon to undertake any
household, offce and commercial distribution
with precision and care, be it local, national or
even international.
As a member of the Professional Movers
Association, (PMA) H&M is forced to comply
with strict rules and regulations regarding its
removal services.
In order to join the PMA, prospective mem-
bers must ensure they are able to provide insur-
ance options, offer secure storage solutions,
use closed-in vehicles and uniformed staff, and
ensure that supervisors are at hand to oversee
all removal duties.
Relocation, relocation, relocation
H&M offers its customers a selection of useful
services that ensure offce relocation jobs run as
smoothly as possible.
As part of its professional service for its
commercial clients, the company claims it is
able to handle any removal, large or small, and
if required is able to ensure as little downtime
125 AUGUST 2011 The African Business Journal
affects the business as possible by offering
after-hours removals.
H&Ms added services include the disman-
tling and reassembly of all offce furniture, spe-
cialising in high-end manufactured furniture. It
can also take care of all insurance issues and
phone transfers, as well as offering a computer
moving service.
Alongside its offce relocation services, the
frm is equally as adept at providing everything
the homeowner or tenant needs when moving
into a new dwelling.
H&M provides its customers with checklists
and tips for moving, and has in place storage and
packing facilities to protect furniture and goods.
With many South Africans moving to other
126 COMPANY FOCUS h&M removals
parts of the world to take on challenging and lu-
crative business opportunities, H&M has refned
its services to offer any kind of relocation, no
matter how small or large, to almost every desti-
nation in the world.
On its website, H&M has highlighted a few
of the testimonials it has received from satisfed
customers, including Tasville Cloete, a business
development offcer for Smart Product House, who
says of the her move from Cape Town to Kimber-
ley: Everything really went smooth and I will highly
recommend H&M Removals to fellow friends.
Another customer, Jeanne Pierre Conje, says
she was equally as satisfed and remarks: I
spoke to the decorator and she said that the fur-
niture all arrived in good condition and the team
that delivered and set up the items were profes-
sional and effcient.
Following a code of ethics
H&M has in place a strict code of ethics, which
it adheres to for all its moves. It promises to
have in place fully-trained and competent staff
across all levels of the business, as well as a
feet of purpose-designed and fully-equipped
removal vehicles.
127 AUGUST 2011 The African Business Journal
Alongside its PMA-approved warehouse and
storage facilities, the company promises to en-
sure the use of clean, high-quality packing ma-
terials, and the availability of comprehensive all
risk in-transit and storage insurance.
In the event of a complaint the frm follows a
path of public recourse through a national execu-
tive committee and also provides customers with
the provision of suitable and adequate insurance
cover for the protection of their furniture.
The company is also able to offer those mov-
ing overseas with competitive prices thanks to
its dealings with numerous shipping companies,
and with years of experience in international relo-
cations, is also able to send goods via air freight
at a competitive price, should the customer
require them to be delivered in a hurry.
H&M approaches its role as a removal
specialist with foresight, experience and in a
friendly manner.
By removing the hassle from one of the more
stressful experiences forced upon people in their
lives, H&M is able to make moving home a lot
easier than it would otherwise be. TAB
www.HMreMOvAls.cO.zA
cenTury prOperTy
DevelOpMenTs
Developments with free will
128
cenTury prOperTy
DevelOpMenTs
Developments with free will
cOMpAny fOcus
130 COMPANY FOCUS Century Property Developments
ALL PHOTOS BY CENTURY PROPERTY DEVELOPEMENTS
131 AUGUST 2011 The African Business Journal
Something people the world over aspire to is freedom, and it is this
philosophy that South african residential development company
Century Property Developments has fourished on.
All Of cenTurys lifestyle estates are designed to provide a sense of personal
freedom and expression while maintaining tight security measures for each
and every resident and their families.
The Massbuild Group, comprising of Builders Warehouse,
Builders Express and Builders Trade Depot offers the largest
range of quality products and services from the small to large
building and maintenance contractors, home improvement,
DIY and garden and related projects.
Builders Warehouse is the only building material and home improvement warehouse in
South Africa that offers project complete solutions. Builders Warehouse received the seal of
Brand Excellence according to goodwill, customer loyalty, market dominance and longevity.
Builders Trade Depot now operates 30 outlets catering mostly for medium- to large-sized
contractors and tradesmen engaged in building, maintenance and renovation projects. It also
focuses on servicing the needs of construction entrepreneurs who require specialized attention.
Builders Warehouse and Builders Trade Depot offer the contractor a specialized service that
caters to specic needs comprising some of the following:
A Key Accounts Manager assigned to you. Visiting your premises/building site frequently
to consult and offer advice
In-store Coordinator to assist with sales, electronic orders and delivery
ensuring convenience and time efciency
Comprehensive central estimating service, providing you with up to date costing
and quantity of bills
Credit facilities (for approved contractors and home owner builders)
Wooden doors manufactured to size in bulk order quantities
Supervised installations of kitchen cupboards
Cornices specically designed in width and cut to size
Precision roof trusses designed and manufactured
Exclusive brands that are tailored to suit the needs of our contractors. Each of these brands
offer guaranteed quality, consistency in range, and value for money
Builders is a member of Master Builders Association (MBA)
For further information on our store locations and services we offer visit us online at
www.builders.co.za or contact our customer care line 0860 284 533 / 0860 BUILDERS
FOR YOUR NEAREST STORE
CALL OUR CALL CENTRE
0860 BUILDERS/0860 284 533
or visit us at www.builders.co.za
ussseee,,
ggesstttttt
aarrggeeee
mmeeenttt,
uuseee iin
eaaal oof f ff
ggev vvity tyyy. .
ee-si izzze zed dd zz ddddd ed
It aal als s aa sss a oo o ooo
eenttio ooonn..
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tt
EERSS
We support
your vision...
from start to
expert nishes
The Leaders in
Building Materials &
Home Improvement
Products
Century_Property_v2.indd 1 6/15/11 12:36 PM
The Massbuild Group, comprising of Builders Warehouse,
Builders Express and Builders Trade Depot offers the largest
range of quality products and services from the small to large
building and maintenance contractors, home improvement,
DIY and garden and related projects.
Builders Warehouse is the only building material and home improvement warehouse in
South Africa that offers project complete solutions. Builders Warehouse received the seal of
Brand Excellence according to goodwill, customer loyalty, market dominance and longevity.
Builders Trade Depot now operates 30 outlets catering mostly for medium- to large-sized
contractors and tradesmen engaged in building, maintenance and renovation projects. It also
focuses on servicing the needs of construction entrepreneurs who require specialized attention.
Builders Warehouse and Builders Trade Depot offer the contractor a specialized service that
caters to specic needs comprising some of the following:
A Key Accounts Manager assigned to you. Visiting your premises/building site frequently
to consult and offer advice
In-store Coordinator to assist with sales, electronic orders and delivery
ensuring convenience and time efciency
Comprehensive central estimating service, providing you with up to date costing
and quantity of bills
Credit facilities (for approved contractors and home owner builders)
Wooden doors manufactured to size in bulk order quantities
Supervised installations of kitchen cupboards
Cornices specically designed in width and cut to size
Precision roof trusses designed and manufactured
Exclusive brands that are tailored to suit the needs of our contractors. Each of these brands
offer guaranteed quality, consistency in range, and value for money
Builders is a member of Master Builders Association (MBA)
For further information on our store locations and services we offer visit us online at
www.builders.co.za or contact our customer care line 0860 284 533 / 0860 BUILDERS
FOR YOUR NEAREST STORE
CALL OUR CALL CENTRE
0860 BUILDERS/0860 284 533
or visit us at www.builders.co.za
ussseee,,
ggesstttttt
aarrggeeee
mmeeenttt,
uuseee iin
eaaal oof f ff
ggev vvity ty yy. .
ee-si izzze zed dd zz ddddd ed
It aal als s aa sss a oo o ooo
eenttio ooonn. .
cce thhaatt t
nntly


rran nddddss
tt
EERSS
We support
your vision...
from start to
expert nishes
The Leaders in
Building Materials &
Home Improvement
Products
Century_Property_v2.indd 1 6/15/11 12:36 PM
134 COMPANY FOCUS Century Property Developments
Having proclaimed its core mission to be to
create viable, well-planned developments, Cen-
tury has worked hard since it was founded back
in 1975 to meet this target.
The frm has provided increasing asset val-
ues for purchasers by enhancing the areas in
which they have been located; an approach that
has played a role in establishing high standards
in residential development within an increasingly
competitive market.
A gem for Gauteng
Specialising in residential developments and ex-
clusive lifestyle estates, Century offers what it
describes as a uniquely South African experience
focused on fnancial feasibility and sustainability
within the province of Gauteng. Its development
track record is impressive and includes the Hilltop
Loft Apartments, a 192 apartment development
in Midrand, the nearby Crowthorne Village that
consists of 25 homes and 28 apartments, and the
upcoming Helderfontein Estate and Riversands
Country Estate in Fourways.
The company claims that behind these suc-
cesses lay the four cornerstones of its design ethos;
these include the use of indigenous landscaping
and natural materials such as wood, stone and
exposed brick in their original state, as well as
135 AUGUST 2011 The African Business Journal
ecologically-friendly products in natural tones.
Strictly indigenous landscaping is com-
bined with a uniquely South African architec-
tural style to create an overall aesthetic that
is unique to both Century and the South Afri-
can community.
This philosophy is refected in every aspect
and discipline of its developments, and is some-
thing the company carefully monitors through
its very own aesthetics committee, which acts
to discourage clichd and exotic styles such as
Balinese or Tuscan.
One of its most impressive developments is
the Waterfall Hills Mature Lifestyle Community.
A trip to Waterfall Hills
Situated between Kyalami and Sandton and adja-
cent to Waterfall Equestrian Estate, Waterfall Hills of-
fer investors a mature lifestyle where comfort, enjoy-
ment, care and security are the key considerations.
A strong emphasis on a celebration of life
has been placed on Waterfall Hills by Century,
who designed the development with socially-
active and lively retirees in mind.
Century also focused on maintenance, insur-
ance and security during the design stage of the
project, in order to provide the easier approach
to life insisted upon from todays formerly hard-
working retirees.
136 COMPANY FOCUS Century Property Developments
CROWTHORNE
HARDWARE LANDSCAPING
For all your hardware, building
materials and tool supply needs
crowthorne@telkomsa.net
T 0027 11 468 2647
The development consists of 198 luxury
freestanding houses ranging from one to three
bedrooms, 55 one and two bedroom exclusive
apartments and penthouse suites situated in the
Waterfall Manor.
The active residents of the development have
access to a range of sporting facilities including
tennis courts and bowling greens, as well as a
chipping and putting area for golfers.
Walking trails, a horticultural centre, and a
gym with a large swimming pool are other fea-
tures of the development.
Those looking for more of a laid-back exis-
tence do not need to worry, as other facilities on
the estate include a movie theatre, various spe-
cialist shops, a health spa and an arts and crafts
studio. All the facilities within the estates focal
point, Waterfall Manor, are available to all resi-
dents and their guests.
According to Century the general mantra be-
hind the development is that residents who have
worked their whole lives will now be able to relax
and enjoy an active, carefree lifestyle.
Waterfall Hills is just the tip of the iceberg
when it comes to the large Waterfall City. Current-
ly under construction in Johannesburg, Century is
137 AUGUST 2011 The African Business Journal
responsible for bringing one of the biggest single
developments of its kind to South Africa.
Estimated to cost close to R 45billion and
covering an area of 1,700ha, the Waterfall
City development will be large enough upon
completion to link the boroughs of Sunninghill,
Midrand, Woodmead and Buccleuch, allow-
ing residents easy access to local landmarks
and facilities outside of the complex, as well as
providing Century with a large pool of potential
local investors.
It has been dubbed a cradle to grave city,
and will include a hospital, residential com-
pounds, fve-star hotels, conference centres, a
school, offces, a lake, gym, malls, retail cen-
tres, lifestyle centres and even a cemetery.
Along with Waterfall Hills Mature Lifestyle
Estate, the wider city will include the 640Ha
Waterfall Country Estate and Village, and the
140Ha Waterfall Equestrian Estate.
Portfolio and people to be proud of
Established more than three decades ago, Cen-
tury has evolved into a diverse entity through the
addition of residential developments and luxury
boutique hotels to its portfolio.
The company was originally focused on
developing shopping centres in rural areas,
but has since frmly established its presence in
South Africas residential development market
without looking back.
Take the Carlswald Lifestyle Estate, for
example, Century is delivering a 42Ha develop-
ment with a uniquely South African favour in
terms of architecture, indigenous landscaping
and green lifestyle.
The company has also demonstrated its
versatile capabilities at a project named The
Yard, a complex that comprises 130 student
apartments.
Historically the company was in the busi-
ness of trading and developing retail shopping
space, but today has successfully shifted that
focus onto the Country Lifestyle segment of
the property market.
This shift in focus has brought with it great
emphasis on green design, and passive cli-
matic architecture as a key priority.
The man leading the companys ambitious
charge is Mark Corbetta young, dynamic Wits
BSc (Building) graduate, who has project man-
aged many of the groups shopping centre sites.
The company has now frmly entrenched
itself in the housing market and in home own-
ership, and today has a frm belief that archi-
tecture should interact with landscaping as
demonstrated in its practise of strictly adher-
ing to an indigenous landscaping policy.
138 COMPANY FOCUS Century Property Developments
As it aims to continue to meet the demand
for sustainable housing in the Johannesburg
area, Centurys sales offce is open seven days
a week.
Building a stellar reputation
Centurys success as a leading South African
developer has been refected in the amount
of awards it has received from reputable
organisation in the past few years.
In 2009 its Waterfall Equestrian and Water-
fall Hills Mature Lifestyle Estates won a total of
six awards at the CNBC International Property
Awards.
Among its achievements at the international
ceremony it romped home with the Best Resi-
dential Development in South Africa for Waterfall
Equestrian Estate, which also went on to collect
the Best Residential Development in Africa award.
Waterfall Hills was also noted as Best Retire-
ment Development in Africa and won when repre-
senting the continent of Africa in the Best of the
World awards ceremony in San Diego.
In South Africa, Century is noted as one of the
most celebrated companies within the countrys
property arena.
In 2010, CEO Mark Corbett was named a
Young Lion winner at the Nedbank Property Pro-
fessional Awards.
139 AUGUST 2011 The African Business Journal
Waterfall Equestrian Estate has won a total
of seven Concrete Manufacturers Association
Masonry Awards for Excellence, with two being
in the Premier category two years in a rowthe
frst such achievement by any property devel-
oper in history.
Finally, back in 2006, Carlswald Lifestyle
Estate was listed as one of the top 10 non-golf
residential estates in Southern Africa by two
notable magazine titles.
Behind everything the company does, how-
ever, is the mantra of family values. The idea of
wholesome family living has inspired Century
to offers its residents a unique opportunity to
live an environmentally conscious lifestyle while
continuing to enjoy the benefts of a secure
neighbourhood.
Its urban designs are centred on the needs
of a community as a whole, and in bringing fam-
ily values and wholesome living together the
company has played a large role in setting the
tone in the development of South African life-
style estates. TAB
www.cenTury.cO.zA
Secure in the knowledge
kuDuMBA invesTMenTs lTD.
When the boat, truck, lorry or plane comes in,
Kudumbas experts take the stress out of security,
with a fast, modern and precision service. 140
Secure in the knowledge
kuDuMBA invesTMenTs lTD.
When the boat, truck, lorry or plane comes in,
Kudumbas experts take the stress out of security,
with a fast, modern and precision service.
cOMpAny fOcus
142 COMPANY FOCUS Kudumba Investments ltd.
143 AUGUST 2011 The African Business Journal
nO MATTer wHAT the industry, whether its com-
puters, cars, cats or cucumbers, one of the frst
things to take care of is the s wordsecurity.
Kudumba is proudly Mozambican and was
formed in 2004 after a comprehensive review of
the market revealed there were defnite require-
ments in the African security services sector.
The study also concluded that using a standard
build-operate-transfer business model, a local
company could satisfy international legislation
and national requirements for the provision of
reliable and effective security.
As a result of the fndings, Kudumba
Investments Ltd. was born and after just a few
years the company has risen from one to over
300 employees.
Ethos
Kudumba is a signatory of the Global Pactan
initiative developed by the United Nations Organi-
zations (UN)which encourages a combination of
policies and best practices. It also aims to en-
courage the international business community to
adopt the fundamental values and internationally
accepted human rights in its business practices,
labor relations, environment concerns and the
fght against corruption.
Additionally, the company adheres to equal
opportunities at work and is against discrimination
of workers of any kind. Therefore Kudumba en-
courages an open door policy for its employees,
which positively welcomes new ideas, innovations
and suggestions, and adds a genuine vitality to
the work environment. This policy stresses how
highly the company regards its employees and
the recognition of their role within it.
Services
In mid-2005 the Government of Mozambique
launched an international tender for the provi-
sion of container scanning equipment, supply
and services. After intense negotiations and an
impressive manifesto Kudumba was awarded the
contracta decision the government has every
reason to be very proud of.
Since the agreement Kudumba has been
applying the latest technology and the highest
standards in national and international security,
with an integrated border security solution and a
set of operations that are second to none.
The slick and sophisticated screening sys-
tems applied at the gateways are now a familiar
and reassuring feature of the landscape through-
out Mozambique, with facilities at its internation-
al frontiers, seaports, airports and land border
crossings. These sophisticated systems ensure
that the movements of cargo and personnel are
both legitimate and safe.
144 COMPANY FOCUS Kudumba Investments ltd.
The wide range of cargo security systems and
equipment is essential and provides the versatil-
ity needed to run an effcient operation 24 hours-
a-day, seven days-a-week and 365 days-a-year. It
is deployed over 11 sites nationwide, employing
several hundred highly trained professionals. Ku-
dumba also makes its own unique contribution
to safety, through fast, effective, effcient and,
above all, non-intrusive inspection procedures.
Selected by Alfandega (the Customs Authority
of Mozambique), bulk traffc and small vehicles
are funneled into the secure area of operation,
where the sophisticated equipment glides rapidly
over the truck or train. This provides ultra-sharp,
high-resolution images of the cargos content,
considerably speeding up the process.
Chief Operating Offcer Kevin Davies refects
on the secret of the companys success: These
safeguards are the envy of similar but longer es-
tablished companies, national governments and
authorities, he says. Additionally, the companys
multi-million US dollar investment in road and rail
facilities means we have been able to introduce
large non-intrusive X-ray scanner systems, radia-
tion portal detection, CCTV, under vehicle security
systems and data capture initiatives.
145 AUGUST 2011 The African Business Journal
Future
Presently Kudumba are only operating in Mozam-
bique but its model easily meets the criteria of
international compliance and there are plans to
apply its expertise internationally.
The emphasis and importance now placed on
frontier security and, in particular within the avia-
tion and maritime worlds, means that countries
and organisations have to invest heavily in equip-
ment, infrastructure and training, says Davies.
There is a necessity for these investments,
which makes our products a very viable option. As
a result, the demand for our services is increasing.
We will start a determined marketing campaign
later this year, initially targeting the neighbouring
countries using the Mozambique platform as a
prime example, he adds.
Progress
There have been many technological develop-
ments in the last couple of years, especially
within IT, such as data storage capabilities, more
accessible and effcient communications, and
state-of-the-art CCTV.
The advancements in image analysis tech-
nology, in particular the dual energy systems
used for the large cargo scanning systems,
mean that the authorities get a true interpreta-
tion of content. In cases of foul play the images
can be used as vital evidence during investiga-
tions and the judicial process.
In the future Kudumba will continue updating
equipment with the most cutting edge detection
technology, ensuring that all modern smuggling
techniques are counteracted.
The use of Kudumbas advanced equipment
and its high levels of training have presented the
developing world countries with the security op-
portunities that twenty years ago simply wouldnt
have been possible. TAB
www.kuDuMBA.cOM
leseDi
nucleAr
services
is more ready than
ever to serve the local
energy industry
cOMpAny fOcus
146
148 COMPANY FOCUS lesedi nuclear Services
149 AUGUST 2011 The African Business Journal
Te origins of lesedi nuclear Services can be traced back to
Intens engineering, a company established in 1984, in Cape
Town, South africa.
inTens HAD Been recruited to provide commissioning services to the Koe-
berg Nuclear Power Stationto this day, the only nuclear power station
on the African continentand Lesedi Nuclear Services emerged from its
workforce. It was offcially formed in 2001, following a merger between
Lesedi Engineering and Intens Engineering. Remaining at Koeberg, the new
companys function was to provide expertise in a range of engineering and
project management operations, as well as vital maintenance services.
150 COMPANY FOCUS lesedi nuclear Services
Later in that same year a strategic partnership
with AREVAthe company that built Koeberg was
established, enabling AREVA to acquire 45 per cent
share in Lesedi Nuclear Services. In 2006, AREVA
increased its stake to the current majority share-
holding of 51 per cent, thus solidifying its presence
in South Africa. AREVA used the opportunity to
establish Lesedi as its local subsidiary.
Pride in power
Five years ago Lesedi employed a total staff of
80 people. That fgure has now risen to 189
people, consisting of 159 permanent employees,
complimented by 30 long-term contractors, with
a wide range of skills. This fgure often fuctuates
to above 250 people depending on the project.
This could increase further over the next fve
years as the nuclear option gains greater atten-
tion and global recognition.
Lesedi takes great pride in its fully integrated
system, which covers health, safety, environment
and quality. The company has also acquired all
of the relevant industry accreditations, including
the all-important nuclear specifcations.
As of 2011, Lesedi has accumulated a whop-
ping 1.7 million hours without a lost time injury -
an astonishing statistic that would be impressive
in any industry.
151 AUGUST 2011 The African Business Journal
152 COMPANY FOCUS lesedi nuclear Services
Building foundations
Today, Lesedis main business focuses on the
delivery of turnkey engineering and construc-
tion projects within the power industry. It also
provides comprehensive engineering solutions
throughout the project life cycle, from initial
design data and feasibility studies, through to
conceptual design and planning, construction
start-up, commissioning and production support.
Managing Director, Francis Carruthers, re-
calls a real turning point for Lesedi: The con-
struction of 14 OCGTs [Open Cycle Gas Tur-
bines] in the Western Cape between 2006 and
2009 was a notable landmark for the company,
he says. We were responsible for the design,
construction and commissioning of the plant,
as well as the mechanical erection of the tur-
bines and the fabrication and installation of over
14,000 metres of piping. The total value of the
contract was more than ZAR 500,000 million.
An important phase of this defning project en-
tailed the construction of seven 150MW open cycle
gas turbines, four in Atlantis (Ankerlig) and three
in Mossel Bay (Gourikwa). Following an extension
by the client, Eskom, two additional facilities were
erected at the Gourikwa site and fve more at the
Ankerlig site, making it a formidable project refer-
ence for Lesedi, outside the nuclear environment.
153 AUGUST 2011 The African Business Journal
154 COMPANY FOCUS lesedi nuclear Services
Reputation rewarded
The companys competencies and proven track
record have resulted in it being awarded a partic-
ularly prestigious project to support the construc-
tion of the ground-breaking Medupi Coal Power
Station. With a planned capacity of 4,800 mega-
watts of power, Medupi is poised to become the
largest dry-cooled facility of its type in the world.
The project client is Eskomthe main util-
ity provider in South Africaand the contract
is worth in excess of ZAR 1 billion. Lesedi is
responsible for the balance of plant and the
design of 17 different systems. These include
plant cooling, portable water distribution, fre
precautions, drain recovery and ash dump irri-
gation systems as well as diesel fuel, oil supply
and oil storage systems.
Moving with the times
In recent years, Lesedi has diversifed its activi-
ties from purely nuclear engineering, project
management and service activities at Koeberg,
to engineering procurement and construction
activities for major power projects in the South
African power industry.
A combination of South Africas approach to
energy infrastructures and the changing eco-
nomic forces, have led to a strategic shift in Lese-
155 AUGUST 2011 The African Business Journal
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african bus_060711.indd 1 2011/07/08 11:49 AM
dis business approach. From having a predomi-
nantly nuclear core, the company has diversifed
its set of resources to enable it to service a very
modern energy industry, now and in the long-
term future.
Lesedi places great emphasis upon staff
training, frequently sending its workers abroad to
nuclear facilities operated by AREVA and its various
subsidiaries. It is now better positioned to service
all EPC contracts for a variety of assignments.
The AREVA group is also expanding in the
renewable energies sectorwind, solar, bio-ener-
gies, hydrogen and storageand is aiming to se-
cure its place in the industry top three by 2012.
As the world switches on to alternative en-
ergy sources, it is reassuring to know that Lesedi
has been keeping its fnger on the pulse for over
25 years. TAB
www.leseDins.cO.zA
Tiger prOves THAT
ecOnOMy neeDs DOugH
Tiger Milling Company
Flour luminaries set sights on continued expansion
after half a century of milling excellence 156
Tiger prOves THAT
ecOnOMy neeDs DOugH
Tiger Milling Company
Flour luminaries set sights on continued expansion
after half a century of milling excellence
cOMpAny fOcus
158 COMPANY FOCUS Tiger Milling Company
wHile All ArOunD people have been losing their
heads, Tiger Milling has opted to use its loaf (as
the old saying goes!). It is true, that in times of
economic uncertainty, people go without, but
you will very rarely hear someone say, I can no
longer justify having a sandwich.
You could say it is a good time to be a miller
especially one with a fne tradition and a reputa-
tion for producing exceptional four and maize.
Tigers tale began 60 years ago when a
couple of existing mills in the country merged.
It then went on to purchase a number of other
159 AUGUST 2011 The African Business Journal
160 COMPANY FOCUS Tiger Milling Company
facilities in the Free State, mainly acquired from
the famous Brenner family. Presently the com-
pany can boast mills in all the large metropoli-
tan areas, including Western Cape and Orange
Free State, making it one of the most recog-
nised producers and suppliers in South Africa.
Best thing since sliced bread
The company specialise in three lucrative areas;
maize milling and wheat and corn four milling. It
also controls Albany, its very own bakery busi-
ness, with several outlets located throughout
the country. This integral customer-facing aspect
of the business has become frmly established
since it was introduced in 1964. It breeds an
essential bond of trust among customers, who
are reassured by a manufacturing process that
is handled entirely by one company, from the
source to the plate. The shops sell bread, cakes,
tarts, bagels and many other products; all made
from ingredients generated at the mills.
The process of taking the raw materials
right through to the consuming stage is unique
to South Africa and is completely unheard of in,
for instance, the U.K., many parts of mainland
Europe and the United States, where trading
161 AUGUST 2011 The African Business Journal
laws prevent mills from bringing its products to
the high street.
Meanwhile, the four and maize that is supplied
outside the Tiger bakeries, remains non-branded
and therefore gives the company much more fex-
ibility when offering them to other companies.
Negotiating the maize
During the global economic downturn Tigers
strength in meticulously analysing supply, produc-
tion and exactly what is feasible, has ensured they
remained a proftable business and easily able to
negotiate the turbulence that had caused havoc
among other companies. Although prices have
been occasionally dictated by the conditions,
Tiger can still rely on its status as a purveyor of
essential items, as opposed to luxury goods as-
sociated with the vehicle or electricals market.
Managing Director Gerrit Le Grange refects
on how the companys philosophy of working on
a day to day basis is paying dividends: We dont
want to create the monster and then not be able
to feed it. In our business we need to monitor
capacity and make sure we can deliver on agree-
ments, he says. With this approach we have
been able to retain our 500 employees, nurture
162 COMPANY FOCUS Tiger Milling Company
optimism during diffcult economic circumstanc-
es and continue thriving.
Market forces
Due to the constantly changing demands of
clients and the daily fuctuations in the mar-
ket, Tiger insists on keeping its claws frmly on
the pulse, working on short term contracts and
performing according to immediate availability,
specifcations and requirements.
Although the milling operations are quite
traditional there have been some technological
improvements in the production stage and the
company has a very modern approach, always
looking to maximise its effciency and continue
its impressive record of results.
Gerrit thinks Tiger Millings ethos ensures
continued growth and long term success. Were
a cutting edge business focussing on the future.
We have been a major corporation for the next
50 years and we are looking forward to the next
50, he says. The business will constantly look
163 AUGUST 2011 The African Business Journal
to expand further by tapping into the option of
purchasing existing ventures.
Top of the table
In South Africa there are three mills; Sasko,
Premier and, of course, Tigerall with their own
bakery arm. The three companies vie for the top
position and, in the last 20 years, it is often the
latter that has reached the summit. Tiger prides
itself on the foundation of brand loyalty it has
built with customers. Its most iconic commercial
products; golden cloud four and ace maize,
have been market leaders for three decades and
are fully immersed into the countrys cultural land-
scape, while becoming a byword for reliability and
premium quality.
In order to capitalise on its popularity and re-
inforce its presence on the market, the company
has invested in several advertising campaigns
for many years they were a frequent addition to
the billboards circuit. In recent years, however, it
has graduated to a more mixed media approach,
notably on television with the wholesome catch-
phrase, Always good!
Tiger Milling is surely proving beyond any doubt
that four power really is making a comeback. TAB
vOpAk
Te worlds largest
liquid storage provider
vOpAk
Te worlds largest
liquid storage provider
cOMpAny fOcus
164
166 COMPANY FOCUS Vopak
167 AUGUST 2011 The African Business Journal
With more than 400 years of industry
experience, Vopak has built a strong
reputation as the worlds largest provider
of storage facilities for bulk liquids. With
experience in a wide range of liquid
handling, its expertise ranges from liquid
or gaseous chemicals, petrochemicals,
oil products, vegetable oils, biofuels and
liquefed natural Gas (lnG).
168 COMPANY FOCUS Vopak
vOpAks MissiOn AnD sTrATegy
MissiOn
Vopak is the worlds leading storage provider
for bulk liquids. It is our aim to contribute
to optimizing the reliability and efficiency
of our customers regional or global supply
chain processes by leveraging our network of
storage terminals around the world, our 400
years experience, our logistics and storage
specific know-how and solution driven and
agile attitude. We aspire to be the worlds
most admired independent storage terminal
company, admired by its
Customers, because we contribute to their
commercial success in an environmental
and social responsible way
Employees, as Vopak offers them equal
opportunities to develop themselves
Shareholders, because we bring them
added value
Partners, because we are a trustworthy and
reliable long-term business partner
We believe that we can only achieve our
ambition by living and acting according
to values that speak to the economic,
social, and environmental responsibilities
of business and society, being: integrity,
professionalism, improvement, ownership,
service, passion and agility.
THe vOpAk vAlues
Professionalism: always striving for the highest
standards
Service: our most important product; we
deliver what we promise
Integrity: the basis for lasting relationships
Improvement: through open communication,
creativity and continuous assessment of results
Agility: adaptability, flexibility and alertness in
order to act rapidly and skillfully
Ownership: to take responsibility and the
initiative in the best interest of the customer
and the company
Passion: enthusiasm, loyalty and commitment;
we believe in what we do
vOpAk sTrATegy
On the basis of our mission of becoming the
most admired independent storage terminal
company a strategy has been defined that rests
on three pillars:
1. Growth leadership
Optimizing and expanding existing
terminals
Developing terminals in new geographical
areas
mergers and acquisitions
developing terminals for new products or
markets, like LNG and biofuels
2. Customer leadership through recognized
excellence in customer service at every site
3. Operational efficiency leadership through
continuously improving operational processes
The strategy is being implemented through
special internal programs, known as strategic
initiatives, and excellence programs for
improving existing operating processes in a
safe and sustainable manner.
169 AUGUST 2011 The African Business Journal
MArcel vAn De Kar, Managing Director of Vopak
South Africa, says, The main storage we pro-
vide is in the global hub areas as we have them
in Rotterdam, Houston, Singapore and also the
Middle East. The chemical storage we do is much
more linked to regional facilities of the chemical
industry. The company currently has tranship-
ment solutions in 80 terminals in 30 countries
worldwide. Each one covers and connects the
worlds major shipping lanes.
To date, Vopak is organized in fve different
divisions: Chemicals Europe, Middle East and
Africa, Oil Europe, Middle East and Africa, Asia,
North America, and Latin America. There is also
a separate organization with aims to develop
LNG terminals. These separate units for Vopak
work jointly to exchange expertise, and work to-
gether on its various international locations.
Projects
Having worldwide hubs, the company works with
a lot of national and international oil companies
and traders. On the chemical side, we work with
a lot of modern manufacturing companies and
traders as well. We rent out the spaces to our
customers, says Van De Kar.
For its terminals around the world, prod-
ucts are stored for various customers under
specifc conditions. These conditions include
temperature control and the blending of liquids
to specifcation of its customers. We develop
our services according to the product, market
and functional requirements, often working
with customers and/or strategic partners,
states the company website.
The company currently operates a storage
terminal with a capacity of 130,000 cubic metres
for petroleum products and chemicals in Durban.
In South Africa, we want to keep our strong posi-
tion in chemical storage and at the same time
we aim to facilitate the growing import of clean
petroleum products. This is one of the reasons
why we are planning to expand the terminal by
30,000 cubic metres of additional storage ca-
pacity. In many countries including South Africa
there is a need for energy in diesel and petrol
and it needs to be imported to meet the de-
mands and supply balance, says Van De Kar.
As an independent storage provider we can help
to develop the infrastructure that is needed to
make these imports possible. Together with our
BEE partner Reatile Resources we are working
on studies to develop terminals in Johannesburg
and Richards Bay.
In addition, Vopak is considering connecting
its terminal to the New Multi-Purpose Product
Pipeline (NMPP) between the port of Durban and
the Gauteng area.
170 COMPANY FOCUS Vopak
In South Africa, Vopaks goals include opera-
tional excellence (including safety and sustain-
ability), service excellence and growth. These
are our three pillars, says Van De Kar. We want
to operate a safe terminal with a good eye on the
environment, we look at our service because we
are a service company and we want to supply
this good service to our customers.
Health and safety and environment
The environmental practices of Vopak are ex-
tremely important to the companys values.
We have defned internally the worldwide best
practices and we apply them all over the world
whether it is a terminal in Europe, or Asia, or
Africa. No matter where it is, we work on the
same standards of sustainability, says Van De
Kar. That is an important difference from a lot of
local players.
Vopak believes that sustainable entrepreneur-
ship is the basis for long-term relationships with
customers, strategic partners, employees, govern-
ments, neighbours and shareholders and is there-
fore an integral part of the companys processes
and operations, states the companys website.
Within this, Vopak not only considers eco-
nomic aspects but also long-term health and-
safety, environment and social aspects.
171 AUGUST 2011 The African Business Journal
Community involvement
Van De Kar notes that the company links com-
munities and municipalities. We build a terminal
for the long term. We make sure the link with the
community is good.
Vopak South Africa works on a number of
initiatives to help the local communities. The
company has a focus on water supply and
water educations. We feel the supply of good,
healthy water is crucial for the development of
the country, says Van De Kar. We are a liquid
logistics player and we think that we can help
develop water projects.
The company understands safety and ser-
vice and the company stands out to its custom-
ers because it is connected in different areas,
understands product fows and is able to antici-
pate on the future needs of South Africa. Vopak
is the No. 1 storage provider for bulk liquids in
the world. It is no surprise with its almost 400
years of service and expertise that the company
has created an international niche for itself in
bulk liquid storage. TAB
www.vOpAk.cOM
siMAng
transforming businesses
When youre thinking big, you cant rule anything out. Tat may sound like
a tagline from an action movie, but its exactly the attitude that Simang has
to acquiring and transforming businesses
172
transforming businesses
When youre thinking big, you cant rule anything out. Tat may sound like
a tagline from an action movie, but its exactly the attitude that Simang has
to acquiring and transforming businesses
cOMpAny fOcus
174 MINING Te Simang Group
THe siMAng grOup story is one that cannot fail
to inspire, especially as Africa becomes an in-
creasingly rich locale to do business. The found-
ers consist entirely of previously disadvantaged
black South Africans, who proudly emerged
from adversity, to establish successful busi-
nesses. These were eventually combined, giving
rise to a highly regarded, ambitious and vibrant
holdings company.
Forward thinking
The company was offcially formed in 2008, after
the heads of the different businesses realised
that they shared common targets and by pool-
ing their talents and recourses, could create a
formidable enterprise. Its a decision that theyve
never regretted.
Among the business people who merged
their existing interests are Chairperson Stephen
Paddy, CEO Andrew Masongwa and COO Law-
rence Maram. Each has brought a combination
of experience, drive and dynamism that has seen
the company expand rapidly over the last three
years.
As an up-and-coming investor the com-
panys primary goal is to monitor the market in
a number of sectors and identify businesses
that show potential and could eventually be
galvanised. The next step is to enthusiastically
purchase majority shares in those viable busi-
nesses and add them to the holding companys
major acquisitions. Once the deal is complete,
Simang sets about transforming the companies
by applying its successful business strategies to
175 AUGUST 2011 The African Business Journal
the new projects, instigating growth and achiev-
ing healthy proft margins.
Its accumulation of these interests is a clear
indication of the ambition and versatility that has
become Simangs trademark. The companies,
although in different industries, are inseparably
linked by Simangs modern approach, passion for
quality and embracing of technological advance-
ments. This refreshing approach may well land it
the platinum-rating it so desires.
In addition, Corporate Social Investment is
one of the core activities within the overall strat-
egy of Simang Group. Indeed, the company has a
number of Corporate Social Investment initiatives
already running, including its prestigious position
as patron for the Gauteng Education Department
Top Student Awards.
Variety is alive
Over the last few years Simang has compiled an
impressive portfolio. It controls a whole host of
companies from sectors as varied as job recruit-
ment, consumer electronics, property develop-
ment and consumer electronics. It has even
taken to the skies recently by claiming a 30 per
cent equity stake in the largest business aviation
company in Africa, ExecuJet. With a charter feet
of over 50 aircraft, ranging from turbo props to
intercontinental jets, and world class facilities at
Lanseria International and Cape Town Interna-
tional airports, ExecuJet South Africa is widely
regarded as the market leader in this industry.
It also has a number of subsidiaries, all with
a Group AAA Empowerdex rating. These include
Simang Developments Ltd., Simang Logistics
176 MINING Te Simang Group
Ltd., Simang M&E Ltd., Simang Resources Ltd.,
Simply IT Ltd. and Vogn Electronics Ltd.
Chairperson Stephen Paddy refects on
Simangs progress. Our combined experiences
and background have given us a great desire to
succeed at this level of business and to thrive
in an exciting and rewarding environment, he
enthuses. On a daily basis we try very hard to
stick to our entrepreneurial roots so, if there is
an opportunity with a new client, or to expand the
business with an existing client; we approach it
wholeheartedly. The spirit within the business is
very much to make things happen.
You get what you put in
Throughout its continuing expansion Simang
has operated an adventurous, inspirational and
highly effective recruitment policy, which has
an obligation to employ people from less fortu-
nate upbringings. The company has discovered
that by providing opportunities that its founders
enjoyed, individuals from similar circumstances
will invariably deliver enthusiasm, professional-
ism and hard work. It has witnessed this method
becoming a great foundation for the company
and an enhanced service for its clients.
The most rewarding aspect of our work,
177 AUGUST 2011 The African Business Journal
especially as we are all entrepreneurs, is seeing
the seed of Simang starting to fourish. I want to
see us continue to grow, do better and get stronger.
This requires big personalities, ambitious plans
and doing things slightly differently, says Paddy.
After negotiating the slightly bumpy ride
brought on by the global economic crisis, Simang is
still in the ascendancy, with a combined workforce
of 1,000 peoplea fgure that is due to escalate by
the end of the year. For the next few years the com-
pany intends to drive forward and expand, making
sure that its companies are proftable, competitive
and provide quality products and services.
Even in the chase for supremacy, profts and
domination there has always been an unwritten
rule in business that you should always remem-
ber where you came from. In Simangs case they
never forgot. TAB
www.siMAng.cO.zA
cuTs ABOve THe resT
hartlief Corporation produces some of
the best meat around just as well in a
business where the steaks are high
178
cuTs ABOve THe resT
hartlief Corporation produces some of
the best meat around just as well in a
business where the steaks are high
fOOD & Drink
180 FOOD & DRINK hartlief Corporation
181 AUGUST 2011 The African Business Journal
Farm to fork sounds like a great slogan, but it also sounds
like quite a long journey, only to be taken by the most sound
professionals. It is a pilgrimage, however, that hartlief Corporation
makes on a daily basis, and takes considerable pride in.
inDeeD, ATTenTiOn TO detail during each mile of its operation has earned it
a status throughout Namibia, South Africa, and beyond, as a trusted pro-
vider of superior fresh and processed meat products.
182 FOOD & DRINK hartlief Corporation
Meat and greet
The Namibian arm of Hartlief Corporation has four
distinct operational units, each providing a valuable
contribution in the farm to fork cycle. The frst is
the Mariental Abattoir, which is a small stock and
game facility. It procures lamb and sheep directly
from the farmer and slaughters them according to
strict EU export standards. The company has suc-
cessfully deboned lamb and springbok for the EU
and Norwegian market for the past 10 years. Lamb
carcasses are transported on a daily basis to South
Africa and to the Hartlief Wholesale facility, situated
in Windhoek.
Hartlief Wholesale sells fresh and frozen
beef, lamb, mutton, pork, chicken and game
meat across all regions of Namibia. The facility
cuts and debones cattle, pig and game carcass-
es on a daily basis in its newly upgraded debon-
ing facility, in order to supply fresh and frozen
meat products to Namibian traders.
The Hartlief factory specialises in the manu-
facturing of quality products, and has a proud
German tradition of almost 70 years. The factory
started as a small, German-owned family butch-
ery in 1946, and has grown to a modern manu-
facturing plant employing nearly 200 people. The
products manufactured in the factory range from
smoked, cooked and fermented meats to an im-
pressive snack range. Its products are exported
to South Africa, as well as several other African
countries including Angola, Botswana, the DRC,
Congo-Brazzaville, Zimbabwe and Zambia.
The Hartlief Shop and Bistro opened its
doors in 2006 and has gone from strength to
183 AUGUST 2011 The African Business Journal
184 FOOD & DRINK hartlief Corporation
strength ever since. It offers customers a de-
lectable array of fresh and processed meats
manufactured at the Hartlief factory, as well as
a wide selection of imported wines, pasta and
preserves.
Hartlief Corporation has a depot and whole-
sale arm in South Africa as well. The South Afri-
can leg of the business trades in the wholesale
fresh sheep and lamb market, and manages the
sales and distribution of Hartlief processed meat
products in supermarkets across South Africa. A
very successful factory shop has been erected in
Johannesburg, which provides affordable meat to
informal traders.
Looking forward
Hartlief Corporation has been meticulous about
making sure clients receive their orders in the
quickest possible time and service delivery is al-
ways one of its top priorities, with frequent invest-
ments made to further improve the system logis-
tics and distribution chain. This includes making
its products widely available in local, regional
and international markets through networking
and building sound business relationships with
key players, not only in Namibia, South Africa and
in Africa as a whole, but also abroad.
Group Operations Director, Fanie du Plessis,
refects that the company has built its reputation
185 AUGUST 2011 The African Business Journal
186 FOOD & DRINK Hartlief Corporation
by adhering to very high standards. We take a
measured approach to how fast we are expand-
ing, making sure there are always enough raw
materials and fnal end products, to meet market
demand, du Plessis says.
The trend in the last couple of years has been
for the price of meat to increase signifcantly every
year and, although the global recession has had an
inevitable impact on consumer behaviour, Hartliefs
insistence on producing and supplying consistently
good quality products has seen them roll with the
punches. Its not becoming a luxury, but it is more
expensive, says du Plessis. Its a worldwide trend
in the food industry, however, farmers are actually
beneftting because of the higher producer prices
for their livestock.
As the Hartlief Corporation group is involved
in the whole supply chain of meat it is ideally
placed to service the needs of producers and
consumers and thereby ensuring sustainability
within Namibias meat industry.
Credentials
Hartlief Corporations popularity is mainly due to
the advanced quality assurance and food safety
187 AUGUST 2011 The African Business Journal
Africas leading supplier of
food ingredients, casings
& industrial equipment
to the meat & poultry industry.
www.freddyhirsch.co.za
Tel +264 61 215750/215770
Fax +264 61 215792
Helu Business Centre
(Erf 7249) Factory East
2 Jeppe Street
Northern Industrial Area, Windhoek
Freddy Hirsch is proud to be associated with
HARTLIEF CORPORATION LTD
and we wish them continued success as the leading
processor of processed meat products.
management programs it has in place, all of
which comply with the strictest EU standards. By
following these international food safety stan-
dards, despite not being part of the EU, they
stand apart as a business from their competitors.
We deal with perishable products so we have
to establish the necessary infrastructure and put in
place adequate resources for handling trade on a
sustainable basis across borders, du Plessis says.
It is vital to keep up with modern methods and
trends as regulations and requirements are con-
stantly changing, especially in the feld of animal
welfare and public health matters.
By setting these very high standards for itself
the company has agreed to regular scrutiny from
EU inspectors and other consumer group and
veterinary services inspections. The criterion set
by the European legislation includes traceability
down to individual farms and animals, as well as
detailed labelling of products before they go out
into the market.
In frmly establishing its targets Hartlief
Corporation boasts an enviable combination of
manpower, resources, knowledge, training facili-
ties and industry expertiseno wonder its at the
top of the food chainTAB
Grand Prix
TrAck cHAnges
TABJ takes a looks at Cape Towns bid to host a Formula one Grand Prix,
and considers the efects the race would have on the citys economy and its
international standing.
prODucTs & services
188
Grand Prix
TrAck cHAnges
TABJ takes a looks at Cape Towns bid to host a Formula one Grand Prix,
and considers the efects the race would have on the citys economy and its
international standing.
190 SPORTS & LEISURE Formula one Grand Prix
Te Singapore Grand Prix, with its
dramatic backdropresembling something
from a 1990s computer gamehas proved
to be an unprecedented success since its
reintroduction to the FIa Formula one
World Championship schedule in 2008.
wiTH severAl OTHer circuits added to the cham-
pionship in recent years, including Abu Dhabi
and China, it would appear to be a fashionable
statement for a city or country to have its name
attached to the words Grand Prix.
With this in mind, Cape Town, often called
the Tavern of the Sea, is looking to get its name
onto the Grand Prix schedule within the next
couple of years, bringing the glitz and glam of
Formula 1, as well the related economic benefts,
back to the African continent.
The Cape Town Grand Prix Bid Company has
been set up to oversee the citys bid to host a
Grand Prix, as South Africas second city looks to
add to its increasingly impressive sporting CV.
Buoyed on by its involvement in the success-
ful hosting of last years World Cup and the fact
that it is gearing up for a bid for the 2020 Olym-
pic Games, bringing a prestigious motor race to
Africa would represent a major coup for the city.
As we bask in the afterglow of a momentous
191 AUGUST 2011 The African Business Journal
FIFA World Cup the hosting of a potential Formula
One Grand Prix in Cape Town in 2013 has never
seemed more plausible, the Cape Town Grand
Prix Bid Company said in a statement released
earlier this year. An annual F1 Grand Prix pres-
ents the opportunity to fuel the countrys econo-
my ahead of a prospective Olympic Games.
Prost romps home in 93
The last time a Formula One Grand Prix took
place in South Africa, Formula 1 great Alain Prost
came out on top for the 1993 season opener at
Gautengs Kyalami circuit.
In his Williams-Renault, the three-times world
champion won by almost 80 seconds at the start
of a season where he would go on to win his
fourth and fnal championship title.
The great Ayrton Senna fnished second,
ahead of third-placed Mark Blundell, in an inci-
dent-packed race that saw the feld reduced from
26 cars to just seven with one lap remaining.
Combining this sort of high-speed entertain-
ment with legions of passionate fans, and bring-
ing into the equations that there is currently no
African race on the F1 calendar at the moment,
Cape Towns addition to the schedule would
generate economic benefts as well as a lot of
local pride.
Andre Human, director of property manage-
ment for the City of Cape Town, says that a Grand
Prix in the city would attract foreign investments
and visitors to Cape Town, as well as playing a
role in job creation.
Human remarks: I think what is important
is that it shouldnt just be the one off Grand Prix
and that there should be other linkages within
the motor industry that can be capitalised on.
But it is a very exciting venture that we
would look forward to and I think Cape Town
would be able to host something of that nature.
The Capetonian adds: Theres a huge motor
racing following in Cape Town and across South
Africa. Its a very popular sport and the one or
PHOTO BY OSKAR SCHULER / SHUTTERSTOCK.COM
192 SPORTS & LEISURE Formula one Grand Prix
two national events held annually often attract
large numbers of people.
Ecclestones underlying infuence
Formula One supremo Bernie Ecclestone has
told South African news outlets that Cape Town is
in line to host a Grand Prix within two years.
According to Ecclestone, a deal is only weeks
away from being signed, and while he has yet
to be drawn into revealing the details of the
proposed circuit or even the fgures behind the
bidding consortium, he is said to harbour a good
feeling about the latest proposals.
Ecclestone recently remarked: In one case,
we had more or less a contract in place and then
something went wrong.
I think we may be a little bit closer than
what we had been for a long time.
As soon as we get a contract in place, which
we are working on now, then it will go from there
quicklyI hope within two years.
In spite of the evident economic benefts
associated with holding a Grand Prix, it is some-
thing that does not come cheap.
Ecclestones Formula One management
company charges on average US$30 million to
$40 million just for the right to host a race and
the cost of hosting a street-circuit Formula One
race in Cape Town is expected to be in the region
of $140 million, as recently predicted by South
African motoring expert and Western Province
Motor Racing Club chairman Brian Smith.
Racing towards the checkered fag
Part of the Cape Town Grand Prix Bid Companys
circuit plan would involve F1 cars racing through
the Cape Town Stadium, one of last years World
Cup venues hosting one of the semi-fnals.
Local motorsport promoters and enthusiast
have also the chance to learn from the example
set by Durban, which has run a series of success-
ful A1 GP meetings on a temporary street circuit.
193 AUGUST 2011 The African Business Journal
It is perhaps the experience of hosting the
World Cup, more than any other, which has Cape-
tonians salivating at the thought of holding one
of the most wanted sporting events on the yearly
calendar, a Formula One Grand Prix.
Cape Town Grand Prix Bid Company released
a statement earlier in the year that said: Un-
like other mega-events like the FIFA World Cup
and the Olympic Games, which occur every four
years, Formula One takes place annually, making
its economic effect even more signifcant.
In November last year a delegation from
Cape Town, led by the citys Executive Mayor,
travelled to Singapore where, between the vari-
ous trade meetings and diplomatic formalities,
they conducted a strategic engagement session
with Singapore GP PTE Ltd, in order to gain an
insight into how the City could respond to numer-
ous challenges of hosting a F1 Grand Prix.
Cape Town is likely to face stiff competition
to host a Grand Prix from Russian and Indian
bids, and questions remain over which current
race would be replaced by those in charge of F1
scheduling. Interestingly there are six races on
the circuit whose contracts to hold an F1 Grand
Prix are set to expire in 2012 Canada, Germa-
ny, Belgium, Abu Dhabi, Brazil, and Singapore.
But without the fans the race would mean
nothing, and having waited nearly two long de-
cades to host a Grand Prix, F1 fanatics from
across the African continent would no doubt
food the picturesque coastal plain of the Cape,
to watch their heroes race at 200-plus kilometres
an hour.
As the city gears itself up to fnd out whether
or not it will become the latest iconic venue to be
added to the Grand Prix rostrum, Messrs Vettel,
Hamilton, Button, and Alonso could soon fnd
themselves fghting for pole position in the shad-
ow of Table Mountain. TAB
AfTer THe
finAl wHisTle
PHOTO BY SEAN NEL / SHUTTERSTOCK.COM
More than 12 months after the last ball was kicked South
africans remains proud of the role their country played
as host of the 2010 FIFa World Cup. TABJ looks at the
economic efects of staging the competition and considers
its benefts one year on.
spOrTs & leisure
194
196 SPORTS & LEISURE Te legacy of 2010 South africa World Cup
THe fOOTBAlling wOrlD was shocked when,
in May 2004, FIFA chairman Sepp Blatter
announced that South Africa had held off the
challenge of fellow bidders Morocco to win the
rights to host the frst World Cup to take place on
the African soil. The news meant that a country,
which only a dozen years earlier had been under
the yoke of apartheid, would be under the global
spotlight for sporting rather than political reasons.
While the rest of the world found itself deep
in the throes of recession in 2009, with the World
Cup around the corner, South Africans continued
to brim with optimism and today the country fnds
its economy in a relatively strong position.
The South African Institute of International Af-
fairs (SAIIA) recently released a report that claims
the economy will grow at a rate of 3.6 per cent this
year, while the African Economic Outlook 2011
report reveals that GDP is expected to grow at a
rate of 4.3 per cent in 2012.
In a recent statement, the SAIIA said: South
Africas real GDP has recovered from -1.7 per cent
in 2009 to 2.8 per cent in 2010, driven primarily
by a steady recovery in consumer spending, par-
tially attributed to the FIFA World Cup.
This rate of GDP growth remained clearly
below trend, estimated around four per cent per
annum for South Africa.
197 AUGUST 2011 The African Business Journal
Footballs version of an international cham-
pionship, like the Olympics, takes place once
every four years and with the crme de la crme
of soccer stars on display, garners the attention
of the world for four whole weeks. It is perhaps
no surprise that economic reports on the country
are still fnding reasons some 12 months later to
cite the 2010 World Cup as a fnancial beneft.
Plastic fantastic
There can be no doubt that with World Cup host-
ing rights comes income; no matter where in the
world it is held, people will come from far and
wide to watch their national sides in action, or
simply to soak up the atmosphere.
Major modern sporting events attract the
interest of global multinational businesses that
look for exclusive options.
Visa is one such company who paid millions of
dollars to be the exclusive credit card and payment
services partner of the 2011 World Cup Finals.
A report by the San Francisco-based fnancial
frm states that at the event there was evidence
of signifcant increases in expenditure by Visa
card holders. Specifcally, expenditure per Visa
card in the South Africa was up 82% for the dura-
tion of the competition.
Visa CMO Antonio Lucio remarks: These
[types of] event act as catalysts for economic
recovery for the host country and nations
surrounding it in terms of international tourism
spending.
Electronic payments play a crucial role in
facilitating this sustainable tourism growth. They
ease the diffculties travellers face when making
purchases in other countries.
Visas report shows that spending levels by
international Visa card holders traveling to South
Africa were growing months before the games took
place; in December spending was up US$220 mil-
lion and in January it was up by $200 million.
Those numbers compared strongly with the
increase in spending during the World Cup: up
$222 million in June 2010 and up $204 million
in July 2010.
Despite these fgures from Visa, Johannes-
burg has recently found itself battling a cash
shortage crisis and at the beginning of July 2011
the city council was asked to approve R4.4 billion
in loans to cover costs, while the city is forced to
wait for funding from the National Treasury.
The request for the short-term loans in many
ways encapsulates the long-term cost of hosting
a World Cup. At the beginning of 2009, just 18
months before the start of the World Cup Finals,
the city was fnancially in the black. In August
2009, Johannesburg was asked to put forward
R1 billion to complete the Soccer City stadium,
198 SPORTS & LEISURE Te legacy of 2010 South africa World Cup
PHOTO BY FSTOCKFOTO / SHUTTERSTOCK.COM
199 AUGUST 2011 The African Business Journal
and ended that particular fnancial year with a
R510 million defcit.
The wealth created by football tourism may
have been signifcant and varied, but it clearly
was not enough to ensure the long-term future of
the citys coffers.
Te fear of white elephants
Johannesburgs FNB Stadium, which was known
as Soccer City during the World Cup, seats an
impressive 94,000 spectators. In Cape Town,
under the glare of Table Mountain sits the equal-
ly impressive Green Point Stadium, which can
accommodate up to 65,000 fans. Both were built
for the World Cup, despite large stadia already
existing in both cities.
Both new stadiums, considering their size
and cost (Green Point Stadium cost $600 million
to build), spend the vast majority of their time
empty and unused.
Eugene van Vuuren, a technical adviser for
the 2010 World Cup who recently spoke at a
stadium design and development conference in
Doha, Qatar, said: The new stadiums in Cape
Town and Durbanuntil they get it right where
the rugby guys are joining the partywill always
have a tough time.
Qatar, venue for the 2022 World Cup, is keen
to avoid the problem of empty stadiums and has
plans to transform its venues after the competi-
tion into other sporting or educational facilities.
With a population smaller than that of Preto-
ria, critics are unsure as to how Qatar will make
use of the 12 venues it will build for the competi-
tion, but for Qatar the focus is not necessarily on
the fnancial outcomes.
Populous principal architect Dan Meis, who
has designed the Sports City Stadium for the
2022 World Cup hosts, says: In Qatar, its less
about the fnancial aspect of it as it is about what
the World Cup can do for the country.
The idea of creating buildings to be multi-
purpose and long use, it ends up developing a lot
more and that becomes a legacy for Qatar. The
World Cup comes here, changes the country and
creates development and experiences the coun-
try didnt have before.
When referee Howard Webb blew the whistle
to signal the end of the World Cup Final at Johan-
nesburgs Soccer City, Spain were world cham-
pions and the worlds attention started to drift
away from the South Africa.
Depending on your point of view, the aftermath
was either a country left with several large, empty
and underused stadiums, or a country left feeling
somewhat fnancially stronger. Either way, there can
no doubt as to its effect on the unity and pride of a
country once divided by colour. TAB
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