Enterprise Africa December 2023 by CMB Media Group

AFRICA

THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS

December 2023

www.enterprise-africa.net

Spear Takes Long-Term Position in Burgeoning Western Cape Exclusive interview with Spear REIT CEO, Quintin Rossi ALSO IN THIS ISSUE:

Similan Properties / Trellidor / Unisure / K-Way Manufacturers

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EDITOR Joe Forshaw joe@enterprise-africa.net

EDITOR’S LETTER

SENIOR PROJECT MANAGER Sam Hendricks sam@enterprise-africa.net SENIOR PROJECT MANAGER James Davey jamesd@enterprise-africa.net PROJECT MANAGER Eleanor Sarbutt-King eleanor@enterprise-africa.net PROJECT MANAGER Jamie Waters jamie@enterprise-africa.net LEAD DESIGNER Aaron Protheroe aaron@enterprise-africa.net FINANCE MANAGER Isabel Murphy isabel@enterprise-africa.net

CONTRIBUTOR Manelesi Dumasi CONTRIBUTOR Timothy Reeder CONTRIBUTOR Benjamin Southwold CONTRIBUTOR William Denstone

At this time of year, a time of giving, many companies are far down the road with a strategy – taking action into their own hands. No longer can loadshedding be a disrupter to business. After almost 17 years, while loadshedding is embedded as part of the ecosystem, most still remember a time when the lights stayed on and most are looking to secure their energy infrastructure. How to do so? Invest. It’s not as simple as propping up solar panels in the car park. Complex engineering is needed to create infrastructure that can support local generation and distribution. That is why Spear REIT – a leading Western Cape property fund – is acquiring assets and investing in solar, through a partnership with Emergent Energy, to allow clients to benefit from energy security that is also sustainable and green. At the same time, spare capacity can be sold back to the grid thanks to the proactive work done by the City of Cape Town to open up the market. A new mixed development close to the city of George will allow Spear to take advantage of a thriving trade route between the Eastern and Western Cape, and tenants will benefit from a modern water and energy system that promotes sustainability. In Stellenbosch, property developer Similan is working on the Newinbosch development – a fresh middle-class neighbourhood, with all the amenities required, at affordable prices, and sustainable in nature. The new development is set to achieve four separate GBCSA certifications. Gaia Group is providing investors with the opportunity to put money into renewable energy projects that will change the course of generation in the country, and COO Denzil Kennon is excited about the early uptake of this exciting fund. Again, loadshedding is a drive that makes this a relatively easy sell. For Herholdt’s Group, a leading electrical distributor with a focus on renewable energy, the clear and obvious focus from clients looking to mitigate against loadshedding is starting to bear fruit as the company became one of the country’s fastest growing with imports of solar panels and associated equipment soaring this year.

Published by Chris Bolderstone – General Manager E. chris@cmb-multimedia.co.uk Fuel Studios, Kiln House, Pottergate, Norwich NR2 1DX +44 (0) 1603 855 161 www.cmb-media.co.uk CMB Media Group does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/or in advertisements included in this magazine do not necessarily represent those of the publisher. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. © CMB Media Group Ltd 2022

The only downside to this solution to a longstanding problem is that investment is required, and costs remain high. But not taking action is perhaps worse than leaving productive capacity at the whim of Eskom over the busy holiday period. Get in touch and let us know how your business is managing loadshedding. We’re always online at LinkedIn

Joe Forshaw EDITOR GET IN TOUCH +44 20 3097 1743 joe@enterprise-africa.net www.enterprise-africa.net

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CONTENTS SPEAR REIT Takes Long-Term Position in Burgeoning Western Cape 6 Spear SIMILAN PROPERTIES Embraces Sustainability as Key to Success 16 Similan TRELLIDOR in on International Opportunities 24 Locked HERHOLDT’S GROUP the Best Brands to SA’s Renewable Energy Boom 32 Bringing GAIA GROUP Impact Fuels Gaia Growth 38 Positive

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54 UNISURE 46 Powerful Protection Provider Promises Peace of Mind K-WAY MANUFACTURERS 54 Deep-Rooted K-Way Thrives in Tough SA Climate JUMBO CLOTHING 62 Stylish Jumbo Shapes for Further Expansion WESTERN CAPE BLOOD SERVICE 68 New Site Allows for Strong Flow at WCBS IDWALA INDUSTRIAL HOLDINGS 72 New Tech Catalyses Efficiency at Idwala RHEINMETALL DENEL MUNITION 80 RDM Targets Further Global Growth www.enterprise-africa.net / 5

SPEAR REIT

Spear Takes Long-Term Position in Burgeoning Western Cape PRODUCTION: Jamie Waters

As the only Real Estate Investment Trust listed on the JSE concentrating on a single province, Spear REIT and CEO Quintin Rossi are confident about 2024 and beyond, looking forward with ambition. “For us, it has been the best investment case in South Africa,” he tells Enterprise Africa. 6 / www.enterprise-africa.net

INDUSTRY FOCUS: PROPERTY

market in the Western Cape having led Spear REIT for 13 years. The company is listed on the JSE with an asset portfolio focused solely on the Western Cape, made up of commercial office space, industrial assets, warehousing, manufacturing, light industrial, urban logistics, and convenience retail and destination retail stock.

Quintin Rossi, CEO

In the large open valley between the high Outeniqua mountains to the north and the cold melting pot of Atlantic and Indian Ocean in the south sits George, the Western Cape’s boom town. Pre pandemic, the city consistently hit above 4% average annual growth rates and is the main economic driver along the famous Garden Route. Through George – a coastal town with a rich history and a pristine shoreline – trade flows successfully thanks to good governance, a zerotolerance approach to corruption, and a growing population. The city is well-governed and, like the rest of the Western Cape, is a reliable investment destination. Taking advantage of this, a new industrial property development is set to commence imminently, the Airport Business Park. On the corner of the R404 and the R102, by George Airport, there is a buzz in the air, not just from

8 / www.enterprise-africa.net

the aircraft that cruise overhead. “GTX Park is one of three that will be developed in the Airport Business Park Precinct,” opens Spear REIT CEO, Quintin Rossi. He highlights the fact that 20 hectares will be split between developers, with Spear REIT taking around 7.8 hectares to realise a project that will bring opportunities and possibility to the area. “We have split it into eight portions where we will develop industrial units ranging from 300 to 10,000 m2. We want to tap into the growing market around George which is halfway between the Eastern Cape and the Western Cape. There is so much food and agro processing thriving in that area, everything from avocados to cheese, and all of the processing and cold storage that goes with it. The food economy there is booming and we see that as a major opportunity.” Rossi understands the real estate

CLOSE TO ASSETS Today, the Spear portfolio is valued at just shy of R5 billion and covers more than 410,000 m2. Its impressive reach is, however, only within the borders of the Western Cape and this is where Rossi sees so much potential. “We are going through challenging macro-economic times and testing political times,” he says. “So, we have set our investment strategy around a region where we are one hour from every one of our assets. We conduct a very hands-on asset management approach and we manage everything internally.” At GTX Park in George, Spear is planning a modern and integrated approach for its development. The area is attracting businesses across multiple industry sectors, from construction to manufacturing to forestry and fisheries, all keen on the growth on offer. As more people and businesses arrive in the Western Cape, attracted by positivity around high-speed fibre rollout and other structural successes, Spear is busy positioning itself as the real estate partner of choice. “The motivation for GTX Park comes from the semi-gration trend,” says Rossi. “Municipal service levels have been decreasing in other parts of the country but improving in the Western Cape and that makes it attractive for business. There is a lot of development happening in the region and there has been a large oil and gas find off the coast of Mossel Bay which has driven investment into the region.” The site will have a specialist water treatment facility and a solar power system to remove the burden on local municipal services and de-risk

SPEAR REIT

investment for potential tenants who will need reliability and consistency in provision of basic utilities. “Solar is important as we still suffer from loadshedding,” admits Rossi. “The municipality of George has established a wheeling policy where we can generate and transfer power from one property to another,” he says, adding that the company’s solar journey began in 2018 and in just five years the total installed capacity is around 9MW. “That is around 25% of our total energy demand coming from PV solar rather than placing further burden on the national grid.” To bring about this tremendous achievement, the company has partnered with those who can clearly deliver. Not happy with a simple tendering process, Spear has been ultra-thorough when onboarding collaborators to deliver high quality. “It is absolutely essential to partner with the right people,” says Rossi. “In 2018, we partnered with Emergent

Energy to drive solar rollout. It was important for us that they had a proven track record and were well-capitalised. They had a proof of concept and they could deliver a good product – that was vital for us. We are effectively stewards of public money and so we have to partner with those who can deliver.” Currently, the onsite activities surround installation of the water augmentation system, with various lines installed to drive the project. “We have installed grey water and water harvesting lines which will effectively feed into the augmentation system that provides onsite water generation capacity for up to 80% of the total Airport Business Park development. We are always looking at how we can place less strain on water supply and fossil fuel generated electricity supply.” As one of the largest developments in the area for the past 15 years, the wider R1.2 billion project will act as an example going forward, highlighting

sustainable development as both right for the environment in the longer-term and right for shareholders looking for consistency in returns. “Spear’s total capital cost for the bulk infrastructure and the top structures will be around R400 million when it is fully developed,” highlights Rossi, citing a five-year programme for development. “It is a great location, intersecting between a growing residential, retail, and industrial area.” “In addition, we have an incredible amount of residential development taking place along the garden route which is driving demand for space from tenants who would supply to the residential developers. Those developments range from entry level to high end luxury and those segments have different requirements. It’s early days for us, but we have had a lot of enquiries from companies from outside of George who want to

Sable Square, Milnerton

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INDUSTRY FOCUS: PROPERTY

GTX Park

establish a presence in George.” For GTX Park, Spear and the co-developers will upgrade further infrastructure around the airport to ensure that the development is future-proofed and sustainable. Upgrades to roads to smooth arterial flow of traffic in the first phase will be followed by a new traffic circle at the airport’s exit in phase two. Later in

phase two, another larger traffic circle will be added along with all new street lighting and other ancillary services. FULL OF OPTIMISM Alongside GTX Park, Spear REIT is on the lookout for new opportunities. Rossi is buoyant, and the team is looking forward with ambition as he aims for strong progress next year.

“There’s a lot to be optimistic about. In 2024, we have this great development coming out of the ground and we have what we believe to be the topping out of the interest rate cycle and that will boost the real estate market. Generally, the first 18 months of an interest rate tapering cycle is when real estate does its absolute best.” Focussing on renewing leases, keeping tenants happy, keeping stakeholders happy, and being innovative, the team is aggressive around growth but not aiming for size for the sake of it. “We are not in any rush to become a behemoth. We have always operated with very strong entrepreneurial characteristics,” says Rossi. “To be entrepreneurial, you can’t be lumpy. Our business will remain nimble and always on the lookout for opportunities.” The goal is to expand from Continues on page 14

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SPEAR REIT

Clear and Simple The successful rollout of the Spear REIT solar strategy is because of the company’s sharp and focused approach, implementing at portfolio level. Spear REIT has cut through the noise in a burgeoning sector, taking the advice of Emergent Energy’s team of investment engineers, to become an industry leader when it comes to rooftop PV infrastructure in the Western Cape. “Spear REIT appreciated our approach of keeping it real, taking the noise and unnecessary complexity out of the solar model, and unpacking it for them in a way they could identify the true value for themselves - keeping it clear and simple,” says MD Dayne Sage. There is a market boom in South Africa right now, with large amounts of solar panels being imported on the back of the crippling loadshedding crisis. Panels are cheaper than ever before and solar energy is the cheapest form of energy globally. However, because of this aggressive growth, many have entered the relatively unregulated market making selection of a reliable partner a minefield. From designing, developing, financing, and installing, the industry faces a skills shortage and many hunting only money and not meaningful impact. “We differ from the norm,” says Sage. “The key to a good portfolio rollout is being able to collaborate as partners. We identify true value for our clients and we avoid getting caught up in the market frenzy. Instead, Emergent opts for a more selective approach, working closely with a limited number of clients.” With Spear, Emergent has been enabling a green energy transition since 2018. By concentrating on quality and results rather than high volume, low sustainability transactional relationships, the company is able to deliver exceptional service. This is what sets it apart from the rest. When Emergent proved its value following a large installation at the 31,111 m2 GLA Sable Square in Milnerton, the benefits of solar and a portfolio-wide approach became clear. With a mixed portfolio across industrial, commercial, retail, warehousing, and manufacturing, Spear’s rooftop space is a perfect opportunity for Emergent to display its expertise. “Through partnering with Emergent Energy and applying the portfolio approach Spear REIT has been able to benefit from all the different funding models, from self-funded to roof rental, and has had access to green infrastructure funded instalment sales with very aggressive finance rates,” explains Sage. It is essential that property owners are advised on the best way to finance solar packages and understanding the income generation prospects for each site and each asset. Taking a blanket approach to a portfolio, utilising only one financial option, makes it easy to lose out on value. Often, it can be more profitable to employ differing financial methodologies across different elements in the asset base. “Looking at these different levers together can allow for better funding options and access to better returns,” says Sage. As the market evolves quickly, with demand for solar soaring from tenants, working hand-in-hand with a partner that has credibility and experience, delivering creating thinking, while keeping things clear and simple is critical. “A crucial aspect to seek in a partnership is the capacity to adjust and evolve together, aligning with market expansion and adapting to shifts in the environment and context,” highlights Sage, confident of Emergent Energy’s ability to help clients make the right decisions.

www.emergentenergy.co.za | 021 828 4202 | info@emergentenergy.co.za

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We Make Solar Investments Clear & Simple We take time to understand the role that solar investment will play for you and we bring clarity to the process by taking care of the details and sharing what matters. In doing so, we empower our clients to make the right decisions for their businesses to grow.

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Defenders of your business case Contracted by the asset owner Our approach differs from the traditional post construction risk management model. Contracted directly by the asset owner, Matriarch operates completely independently from the project delivery team. This enables us to have a genuine, unbiased mandate that safeguard financial investment; and ensure favourable returns for the asset owner.

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INDUSTRY FOCUS: PROPERTY

Continued from page 10 a R5 billion to R15 billion fund in five years, all in the Western Cape, always concentrating on industrial, warehousing, office, and retail assets. In this growth comes opportunities for employment creation, something which Spear drives through various CSR activities throughout the year. “For us, it is important to find ways to stem the rising tide of unemployment in our country,” highlights Rossi. “Outside of loadshedding, this is one of the biggest risks that we face. We want to do our part in the year ahead to find employment opportunities – whether that is through temporary job creation in construction and development or permanent job creation within our business.”

Liberty Life, Century City

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Spear is a proud supporter of a number of initiatives that assist in getting people into work for the first time or back into work after challenges in their personal life. It labels its philanthropy Impact in Action. The Bonginkosi Educare Centre, Hope Farm Restoration, and others are NPOs that go above and beyond to help people in a meaningful way so that more can thrive within society. LIFTING ALL SHIPS Spear is the only REIT to be regionally focused, and this comes from Rossi’s ambition to remain hands on with the assets in the portfolio. Completing an asset buyout of certain Western Cape assets from his previous employer in 2011, the core of Spear has always been the Western Cape where the Spear team live, learn, and work.

“The Western Cape economy has grown from R750 billion to almost R1 trillion over recent years. We generate 100% of our value through the Western Cape and so we want to do what we can to fuel the rising tide that will lift all ships,” Rossi smiles. Key in the company’s success over the past decade has been strong relationships. From partners that work on developments to long-standing financial backers, Spear shares its passion and chooses partners who do the same. “We don’t believe we are gods gift to real estate – we are humble and we love what we do. There is a collaborative culture and that stands out – especially in times like Covid. We had shareholders who are reliant on their dividend from us and we maintained that all the way through Covid. The consistent,

SPEAR REIT

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credible, and predictable approach has always been at the forefront of our business since inception. “As small as we are in relative terms,” Rossi adds, “we have become quite a countercyclical property counter. The rest of the country’s real estate companies are facing severe headwinds

// THE CONSISTENT, CREDIBLE, AND PREDICTABLE APPROACH HAS ALWAYS BEEN AT THE FOREFRONT OF OUR BUSINESS SINCE INCEPTION //

because of municipal decline but we are a net benefactor of semi-gration and investment in the province.” He explains, as an example, that the budget for Cape Town infrastructure (4.3 million people) for the next three years is around R43 billion but Johannesburg (5.6 million people) only expects around R21 billion. “That means we will have better roads, better sewage, better water, better electrical services etc,” says Rossi. “For me, as someone looking to grow a business, that tells me I can happily look around Cape Town and the Western Cape for investment opportunities as the population grows.” Clear that there is more to the Western Cape than wine and tourism, Rossi offers potential investors a way to experience the province’s beauty from a different perspective – a

Spear REIT

growing investment destination, with an obvious plan for advancement, and with consistent, predictable, and credible returns for those who understand the lay of the land. “If you’re looking for SA real estate exposure without direct hassles of ownership, Spear offers a highly attractive investment proposition given the fact that we are invested in the fastest growing economic province in the country, in the most industrialised nation on the continent,” he concludes.

WWW.SPEARPROP.CO.ZA

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SIMILAN PROPERTIES

Similan Embraces Sustainability as Key to Success PRODUCTION: Eleanor Sarbutt-King

Building exciting, connected, and sustainable communities for South Africa’s budding homeowners, Similan brings a fresh approach centred around continuous improvement. Founder Harold Spies tells Enterprise Africa that every new venture undertaken by the company must outshine previous ones, fostering a culture of growth and excellence as they expand their reach nationwide. 16 / www.enterprise-africa.net

INDUSTRY FOCUS: PROPERTY

The team at Similan is busy creating meaning in South Africa’s property sector, working to the tune of accomplishment as it builds attractive and sustainable homes for a growing population, exactly where they are needed. In the gorgeous Western Cape, where rolling hills and valleys full of indigenous flora, fynbos and sun ripened grapes that make the world’s best wine, Similan is creating a lasting legacy, one that will impact the lives of families for generations. Founded by Harold Spies in 2010, Similan is a unique property development business that provides a turnkey offering; all the way from acquiring land and zoning correctly through building and selling homes, and managing rental units where required.

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The focus for the company is all about quality and improvement. The processes that it employs and the products it delivers are some of the best around, and Similan has been recognised for this excellence, hitting the high notes with various industry awards. “We are like conductors in the orchestra,” begins Spies. “We have to make sure everyone plays the right note at the right time to make sure beautiful music is made.” “If we were a mathematical equation, I would say that Similan + sustainability + track record = truly successful projects,” he adds. Successful projects encompass a whole host of things: Value for money, well-built, costeffective management, lesser impact on the environment, liveable and inviting, community-focused, well-maintained,

appreciating values, and more. Over the past 14 years, Similan has completed several exciting developments that have delivered on all promises. Mainly focused on the Western Cape, the company’s portfolio boasts the CentralBlue and Newinbosch developments as well as the Selcourt Estate in Gauteng, the Summer Rain Private Estate and Karino Lifestyle Estate in Mpumalanga, the Fourleaf Estate in the Eastern Cape, and The Woods development in KZN. Similan’s core business comes in the form of three main legs. Firstly, standard property development in its own right. Secondly, consultancy work where property development is handled on behalf of other clients including development management work, project management, construction project management,

SIMILAN PROPERTIES

and property valuations. Finally, Similan offers estate agency services, looking after its own sales and rentals, where it has a 1200-unit portfolio. “For us, development is the sum of a million small things. It’s not just about size or location or price. In between those three headlines there are another hundred data points that we consider when we develop,” says Spies. SOUGHT AFTER LOCATIONS Currently, Similan is busy with two major projects – Newinbosch in Stellenbosch and the Urbika Urban Lifestyle Estate in Gauteng. Newinbosch has been welcomed by all because of its clever positioning in a challenging marketplace. “Stellenbosch, like other places in the Western Cape is a town that works but it has a number of problems,” admits Spies. “It is very expensive to live from a property perspective. The prices are exceptionally high and that is prohibiting if you want to move from other towns. Our aim with Newinbosch is to create a middle-class neighbourhood which we don’t think exists in Stellenbosch based on the price point. There are low-income solutions that are not too expensive, but those communities are often protected and difficult to access. That leaves a gaping hole for young professionals and young families who sell an average house in the rest of South Africa and want to move to Stellenbosch. Newinbosch aims to be a new neighbourhood and new in a number of ways including what we develop, how we approach development, our sustainability targets, how we are certified, how we use energy, and how we manage that process.”

Harold Spies, Founder

Onsite, a large solar PV project is being developed, alongside a backup generator system to protect residents against loadshedding but in a sustainable manner. “The market has responded nicely to that,” suggests Spies. “We launched 200 of 1320 units in May and we have sold around 180 already, which is brilliant for current market conditions. We launched the first apartment building recently and we have almost sold out on the first phase

// OUR AIM WITH NEWINBOSCH IS TO CREATE A MIDDLE-CLASS NEIGHBOURHOOD WHICH WE DON’T THINK EXISTS IN STELLENBOSCH BASED ON THE PRICE POINT //

which we are very happy about.” Similan understands the Stellenbosch market and is confident about Newinbosch going forward as various phases are conducted over the next four years, creating a R2.4 billion neighbourhood. The vibe here is connected and convenient, drumming the beat of urban convenience and rural tranquillity. “It is a sought-after location. It has always had fantastic capital growth on properties,” declares Spies. “It’s beautiful, it’s wine country, it’s between mountains and rivers, and the quality of life is fantastic. That has helped buffer us against some of the negatives we have experienced. Although it has been a much tougher environment to operate in, our products and the positioning of them from a price and

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INDUSTRY FOCUS: PROPERTY

locality perspective seems to find favour with potential buyers,” he says of the challenging conditions in a postCovid environment, laden with clammarkets, adding that any reduction in sales have been minor at worst. De Kleinje Wingerd, just outside

// WE ALWAYS ASK A BIG SET OF QUESTIONS, AND THE ANSWERS TO THOSE QUESTIONS SHOULD NOW BE DIFFERENT TO WHAT WAS ANSWERED ON A PREVIOUS DEVELOPMENT // 20 / www.enterprise-africa.net

Cape Town, is another exciting Similan development and is already sold out. Set in A modern project in a prime area around Kuils River, De Kleinje Wingerd sits alongside the impressive Zevenwacht Estate. “We have completed the first apartment buildings and people are occupying, and the balance will be completed by the end of January. That is a 171-unit development.” Also in the Western Cape, Similan is hoping to take advantage of the Mediterranean-style climate along the famed Garden Route where its is soon to begin with a new project in Mossel Bay. “It’s an 800-unit development in a great region, the weather and community are fantastic, and it offers so much for people looking to move from the northern parts of the country,” says Spies. By the end of February 2024, Similan expects to complete the final

phase of the Urbika development in Ekurhuleni. This will be the last of current projects outside of the Western Cape and will see 1099 homes and apartments completed with highquality finishing and technology to keep the development relevant in the future. East of Johannesburg CBD, there is not another development like Urbika. NO COMPARISON From the beginning, Spies was clear that the company should always advance on its previous projects, consistently finding better ways to do everything and, importantly, enhancing its environmental credentials to keep its position as a concertmaster in a crowded and busy industry. “We don’t position ourselves against other developers. We don’t do quarterly or yearly comparisons against others,” he says. “The origin of what

SIMILAN PROPERTIES

we do comes from two key questions. One is where there is a piece of land that needs to be developed and we start a journey. Second is where we have a specific need such as a certain type of development in an area that comes from within or from our clients. From there, another journey starts with finding the right land.” Not content with simply putting up houses to increase volume or taking the cookie cutter approach, Similan insists on getting the most from the site, understanding context, and being sustainable. “It’s all about finding the best possible response for that piece of land,” smiles Spies. The best possible response for Similan comes from potential residents, government, and the environment. Without positives from all three, it

cannot achieve its goals. To ensure that it is delivering more than the bassline, Similan benchmarks itself against strict standards set out by the Green Building Council South Africa (GBCSA). “We always ask a big set of questions, and the answers to those questions should now be different to what was answered on a previous development. Sustainability is a key fundamental for us and our aim is to lessen the impact from a building perspective but also with the spaces between buildings. We ask other questions around ecology, water use, energy use etc. Most of those are derived from the certifications that we use on our developments, run by the GBCSA,” explains Spies. At Newinbosch, Similan is hoping for four separate certifications from the GBCSA to bolster its

sustainability credentials. The Green Star 5 Star rating is a top certification awarded by the GBCSA. It recognises buildings or developments that demonstrate South African excellence in sustainable design, construction and operation. At Newinbosch, The Grappa Shed events venue, will pursue this certification with its specific focus on water efficiency, indoor quality, sustainable materials and innovative design. Net Zero Certification is awarded to projects that go beyond the partial reductions recognised in the current GBCSA tools. Newinbosch will improve the ecological value of the site, enhancing biodiversity, habitat and quality of green space. EDGE (Excellence in Design for Greater Efficiencies) offers a measurable way to cut back on the resource intensity of buildings. The Sustainable

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INDUSTRY FOCUS: PROPERTY

Precincts tool plays a pivotal role in evaluating large-scale developments, compelling developers to prioritise thoughtful design, community integration, and environmental well-being. Newinbosch encapsulates

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this through its live-work-play ethos designed to improve quality of life. “A big part of our ethos is to build in a more sustainable manner and that is a cliché that is thrown around worldwide,” details Spies. “We don’t subscribe to

greenwashing; we have a heartfelt and honest need to do better than what we have done previously. There is a big ask of all industries to have a lesser impact on the environment. Many responses differ; some do it for brownie points, some do it so they can put a certificate on their wall, and others do it because they subscribe to what needs to be done and lessen the impact. For us, it is about doing what we do but better every time we deploy our skillset on a property.” Building better means landscaping better, using less water, using less energy, and making sure that ergonomically everything is thought about in detail so that the best possible solutions are achieved. This success is then passed to residents who can qualify for green bonds, and Similan’s development finance can be cheaper.

SIMILAN PROPERTIES

COLLABORATORS Developing fantastic property in South Africa, like creating beautiful orchestral music, is not something that can be done alone. Similan works alongside some of the industry’s experts to bring projects to life, and Spies has spent a long time putting together the best ensemble. “The value chain is significant,” he says. “The number of people that sit around a table is substantial. We do rely on a whole range of different partners.” Everyone from architect to quantity surveyor to interior designer to botanist plays a key role in bringing the vision to life, and collaborators tend to build lasting relationships. “We are quite a close-knit team and we journey with our partners through different projects. From a Similan perspective, our focus is on

doing what we do really well. We want an incredible product at a reasonable price for our buyers. Within that, the green story is one that is daily integrated into everything we do. Our approach allows us to ensure professionalism and means we get truly exceptional service,” confirms Spies. Similan has become the expert at unifying all performers, setting the tempo, and controlling the interpretation of concepts. Like a true conductor, the company delivers the message from the idea composers, and achieves desired performance. “We deliver the development, which is a confluence of the marketing story, the money story, the building story, and the management of properties,” reiterates Spies. Through this agenda, the company continues to shape the future for

families in South Africa. “We have seen real cost pressures from all directions but there is a desirability around where our developments are and that keeps us confident about the future,” he concludes. Similan has always been about building communities and not houses, pairing two unlikely housemates – affordability and quality – so that a new generation can become proud homeowners. So far, it’s mission accomplished as the company helps to tune the industry for a better way forward.

WWW.SIMILAN.CO.ZA

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TRELLIDOR

Locked in on International Opportunities PRODUCTION: James Davey

Trellidor security products continue to stand up to the toughest tests, and this helps fuel the expansion of the brand around the world. International Sales Manager Peter Rawson tells Enterprise Africa that the company is eyeing further global expansion with its strength often unmatched. 24 / www.enterprise-africa.net

INDUSTRY FOCUS: SECURITY

Security and protection specialist Trellidor tests products to the limit and beyond, giving peace of mind to clients that cannot be found with other brands. This peace of mind stems from the rigorous testing that

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Trellidor products undergo through international certification body, Loss Prevention Certification Board (LPCB). Trellidor has four certified security barriers, and all products are produced in a certified manufacturing facility. The company, formed in South

Africa in the 1976, has grown to become a powerful player in the large African security industry. In SA, where housebreaking and home robbery are the most common crimes experienced by households (with 5.7% of all households experiencing incidences of housebreaking in 2022/23), Trellidor brings a proven solution. Steel or aluminium, in various colours, the retractable shutter is famous for its strength. Building on this success over the years, new products have been added and Trellidor now offers a comprehensive security solution that includes roller and retractable shutters, burglar bars, screens, sectional doors, lifestyle products, and much more. Whether it’s balconies, sash windows, garage doors, shop fronts, or industrial applications, Trellidor manufactures bespoke solutions. “We have a very unique

TRELLIDOR

manufacturing process where we roll form the uprights and cross flights. No other company does this,” says International Sales Manager, Peter Rawson. “When it comes to strength, we pride ourselves on being literally the strongest product that you can buy. We say that because we have spent an absolute fortune testing most of our products with the Loss Prevention Certification Board (LCPB) in the UK.” This independent and relevant accreditation ensures that products are suitable and meet the strictest of standards. Importantly, LCPB certification is recognised globally and this has been useful as Trellidor has started an aggressive growth strategy to regain momentum it had in international markets pre-Covid pandemic. STRONG FOUNDATIONS The preferred model for Trellidor is to manufacture locally but this is not always possible, especially for big

orders with bespoke materials, and with some countries imposing harsh import duties. To overcome this, the company has built a franchise-style operation on the continent with what Rawson calls ‘trim shops’ located strategically around core markets. “We see a lot of potential, particularly in Africa. The period through Covid saw our exports into Africa and the Indian Ocean Islands die down as they locked down,” he says. “But we are now sitting in a position where the foundations are solid and everything is working again. We are getting an incredible amount of traction back into Africa – including some countries that we have not been in before. We opened a new franchise in Rwanda recently, and we are talking to people in Uganda, DRC, and Angola. New opportunities in West Africa right now include Senegal, Sierra Leone, Guinea, Togo, Benin, Cameroon, and Ivory Coast. We also have a branch in Ghana.”

In Ghana, Trellidor has a trim shop, where products can be cut to size and perfected for individual spaces. Run by skilled local artisans, these facilities are home to effective technology that fuels the strength of Trellidor and increases capacity. When up against competition, this gives Trellidor an advantage as most others will import ready-made products in standard sizes at low security and quality levels as well as extended lead times for delivery and installation. “It is our intention to work the trim shop model much more efficiently,” says Rawson. “Currently, we only focus on the retractable - the original Trellidor product. Security remains a grudge purchase but when people make up their mind, that they want and need it immediately. The trim shops have given us an opportunity to make sure our product range is bespoke. Every single product is measured and manufactured exactly to fit. That makes us unique and gives us protection against cheap imports,

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INDUSTRY FOCUS: SECURITY

produced en mass, cheap and cheerful, but not bespoke and not certified.” Without this option, the company would struggle to deliver in the required timeframe – essential in the security industry. When setting up in a new country, the ideal strategy will be to incorporate a trim shop as

// WE HAVE A VERY UNIQUE MANUFACTURING PROCESS WHERE WE ROLL FORM THE UPRIGHTS AND CROSS FLIGHTS. NO OTHER COMPANY DOES THIS // 28 / www.enterprise-africa.net

part of the infrastructure. Alternatively, larger trim shops could become centres of excellence for certain regions. For example, the company has a strong presence in Ghana, Kenya, and Tanzania, and from here products could be tailored to meet the needs of clients before being dispatched into smaller markets. “It’s been quite illuminating as to the amount of demand there is in Africa for our type of security,” says Rawson. “The nice thing is that we are 50-50 in many countries between residential markets, and then commercial, embassies, hospitality, etc.” GLOBAL EXPANSION Away from residential, Trellidor is performing strongly thanks to contracts across multiple industry sectors. Expansion in the UK has been highly

successful and the company now runs a self-sustaining operation out of England with a number of high-profile clients. “The London Underground has many of their own regulations about when you can measure, how you install, and it goes beyond the LPCB rules. It was a massive learning curve for us on the engineering side and we had to overcome many challenges,” Rawson says. Initially, the company installed the SA-made Trojan 3 EMESC T3000 steel security gates in four London Underground stations, but the company has grown its presence through its local franchise operation. “We had to come up with a special locking system that could be unlocked easily in emergencies,” Continues on page 30

Performance by Design Applied Coating Technologies (SA) PTY LTD has been a Nordson Distributor since 1 April 1993. Nordson, founded in 1954, has a footpring in 57 countries. ACT represent Nordson in the Industrial Finishing Division. Industrial Finishing comprises, the application of Powder Paint, Liquid Paint and cold glue onto a multitude of different substrates. In 2017, ACT became a distributor of Sagola, a Spanish company founded in 1955 that is now wholly owned by Elcometer UK. ACT represents Sagola in Industrial Finishing and Body Shop applications. ACT are able to provide full turnkey solutions of complete paint lines and using the latest design software are able to customize designs to suit clients needs.

Unit B1, The Meadows, 4 Essex Street. Meadowdale, Germiston, 1401, South Africa t: +27 (0)11 392 6461 e: info@actnordson.co.za www.actnordson.co.za

INDUSTRY FOCUS: SECURITY

Continued from page 28 Rawson details. “Our business in England is growing exponentially at the moment with our main customers the London Underground and Sainsbury’s, but we are talking to many other tier one retailers. “We test everything internally and many products through the LPCB, and we go through many audits to ensure the factory specifications are continuous and approved. That has definitely set us apart from any South African opposition. We also install at an enormous amount of embassies and some are very demanding. LPCB certification gives them comfort that they are dealing with a certified product that is exceptionally strong.” A great advert for strength and reliability is a Trellidor product standing guard at US, UK, Dutch, or Danish

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embassies across Africa where highly specific requirements are entrenched in the rollout of any security provision. This has continued to drive interest from around the globe as users hunt for the strongest, proven products. “We are getting a lot of traction all over the world,” admits Rawson. “We are investigating South America, various cities in USA and already running in Los Angeles. We are up and running in Canada, New Zealand and are trading in Australia.” If Trellidor can continue with the progress it has realised in various international markets, the success posted recently with robust financials will endure. At the start of 2023, in an effort to put the Covid-era behind it, Trellidor held a conference and launched a number of exciting new products to generate interest and ignite enthusiasm in the

market as it aimed for regrowth. “The immediate objective was to re-assemble our international presence, and we are feeling very positive about that,” smiles Rawson. “We have some incredibly good operators around the world, we own a great operation in the UK, and the branch in Ghana. That has been established as our hub in West Africa and we are looking at how we can make the most of that. We have a really big trim shop with a lot of expertise and they are strategically located from a logistics point of view.” QUALITY & STRENGTH Securing presence in new markets is always locked into the Trellidor international strategy and there is a plan for further expansion as capacity issues are rolled out, and challenges around obtaining the required skills are overcome.

TRELLIDOR

// SECURITY REMAINS A GRUDGE PURCHASE BUT WHEN PEOPLE MAKE UP THEIR MIND THAT THEY WANT IT, THEY THEN NEED IT RIGHT NOW // But to rollout with fantastic products requires the back up of fantastic service. Trellidor is well-versed when it comes to advancing skills in South Africa, but training internationally is more difficult. To combat this challenge, the company is investing in digital solutions to bring skills and knowledge to people all over the world.

“It’s a people focused business. We need people with skills across many different parts of the business. There is a level of development that has to go with this and that is one of our biggest challenges – the further we go from SA, the more difficult it becomes. We put an enormous amount of effort into virtual training, programmes, and easy to use videos for new products,” highlights Rawson. “It’s amazing what you can do virtually now, and that has had a big effect for us on training and development. Ours isn’t a known product – people have to start from scratch when learning about the offering and culture, but the tools we have now are a great starting point.” Over the next five years, the wider security industry is expected to achieve a compound annual growth rate (CAGR) of at least 10% globally.

More households and more businesses are expected to enter the market or up their involvement. The USA is the largest market in the global security industry, and South Africa is expected to be home to a market worth more than $165 million by 2028. All active participants in all of the markets that Trellidor operates in are looking for the best – security is not the place to scrimp. “We are insistent on quality. That is what sets us apart,” Rawson concludes, confident and ambitious about the unabating, incessant growth of the business.

WWW.TRELLIDOR.CO.ZA

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HERHOLDT’S GROUP

Bringing the Best Brands

to SA’s Renewable Energy Boom PRODUCTION: Jamie Waters

As more look to dictate their own future with a sustainable energy solution, Herholdt’s Group stands ready to deliver with a range of the best brands from around the world and a trusted network of partners who can install anywhere in South Africa. 32 / www.enterprise-africa.net

INDUSTRY FOCUS: ENERGY

In South Africa, the green energy transition is well and truly underway, albeit quiet and gradual. According to the International Energy Association (IEA), coal is still South Africa’s mainstay and the most industrialised nation on the continent has a lot of work to do to wean itself away from the natural resource – which fuels 70% of installed capacity. Other fuels in the mix include oil, natural gas, nuclear, and some biofuels, but wind and solar are minimal contributors. Eskom continues to implement loadshedding across its network when supply fails to meet demand and, while crippling for businesses and households, this challenge has presented an opportunity, one which is being grasped by many in the private sector. Solar energy has, over the past

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decade, become cheaper than ever before. In fact, the IEA highlights solar power as the cheapest source of electricity in history. In 2021, half of all new capacity installed around the world was solar PV. By 2030, it is expected that 33% of all energy produced will be from wind and solar. In South Africa, where the sun shines for 2500 hours each year, solar is up and coming. Rooftop capacity in the country is large. Wide open arid landscapes hold major potential. Engineering skill is strong, and the appetite for change amidst loadshedding is vast. Companies looking to invest in solar have options. For leading electrical, lighting, and renewable energy business, Herholdt’s Group, bringing value and service to the solar industry in South Africa is a certainty. The company’s range includes everything

from general electrical items and tools through industrial lighting and accessories, to PV modules, batteries, solar inverters, and much more. Many leading brands are stocked, and a national footprint is helping clients to advance their energy transition position. “With our Head Office in Bloemfontein and branches in Kimberley, Gauteng, Cape Town, Johannesburg, Gqeberha, George, Centurion, and Durban we are able to distribute to anywhere in South Africa and our bordering countries,” the company says. HISTORIC Established in 1974 by Bernhard (Kiepie) Herholdt – a qualified electrical contractor from Bloemfontein – the early focus of the business was to electrify large building projects such as

HERHOLDT’S GROUP

// WITH OUR HEAD OFFICE IN BLOEMFONTEIN AND BRANCHES IN KIMBERLEY, GAUTENG, CAPE TOWN, JOHANNESBURG, GQEBERHA, GEORGE, CENTURION, AND DURBAN WE ARE ABLE TO DISTRIBUTE TO ANYWHERE IN SOUTH AFRICA AND OUR BORDERING COUNTRIES // hospitals and libraries in the Free State. After some expansion into new parts of the electrical industry, and a strong focus on customer service leading to a sterling reputation, Kiepie’s family had also become involved in the business and youngest son, Heine, was heading up the branch in Kimberley. There, a conversation with a customer led to the business investing into solar resources and realising the

opportunity for businesses to harness the power of the sun to provide a buffer or mitigation against loadshedding. “Ours is indeed a remarkable success story and legacy despite humble beginnings,” the company says. In 2021, after a number of successful installations and a healthy brand in SA, the Adenia Group acquired 78% of Herholdt’s Group, promising to further enhance

the business to capitalise on the positivity achieved to date. “We are thrilled to welcome Adenia as an investor and look forward to continue our growth with their strategic guidance and steadfast approach to improving governance. The partnership is in perfect alignment with Herholdt’s ambitions to become a national market leader, while meeting the highest industry and environmental standards,” said Heine Herholdt, now CEO of the company. In May 2023, confirmation that the new partnership with Adenia was indeed working came when the Financial Times released its list of the 100 Fastest Growing Companies in Africa. At number 36, Herholdt’s Group displayed a compound annual growth rate of almost 50% and 2021 revenues of more than $100 million.

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INDUSTRY FOCUS: ENERGY

A driver of this is the unabating demand for solar. In the first half of 2023, SA imported R12 billion worth of solar cells and solar PV panels. This equates to around 2200 MW of renewable energy power. Loadshedding, which was the same to May 2023 as the whole of 2022, was the main driver alongside the spiralling cost of energy. SOLAR POWER By August 2023, rooftop solar capacity increased by 349% on the previous year. This is where Herholdt’s can play a big role. Private companies and individuals are no longer interested in relying on Eskom to solve problems and are taking issues into their own hands. In June 2023, the City of Cape Town announced plans to buy excess power back from private generating assets to feed the grid. The government has realised the potential of solar as a decarbonising tool and is offering

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rebates to households that install rooftop panels. But the transition has only just begun, giving Herholdt’s a clear growth trajectory. This is why the company is a founding member of the Association for Renewable Energy Practitioners, helping to shape the industry going forward. In December, the company was proud to display a large solar system in Petrusburg, Free State. Here, trusted installation partner MacDé Electrical used products from Herholdt’s including inverters, batteries, panels, and wires to create a brilliant solution that saves money and reduces carbon footprint. In Richards Bay, at Felixton College, 280 panels power three superior batteries for a sustainable solution that allow for education to continue. Installed by 365Solar – another Herholdt’s partner – the project sees state-of-the-art intelligence connected with modern technology, all by local expertise.

At the Pumula Beach Hotel in KZN, AdRenewables utilised hybrid inverters, batteries, and PV modules from Sunsynk – distributed in SA by Herholdt’s - to ensure the sustainability of the resort in a natural setting on the beautiful Umzumbe beach. These examples are evidence of the success that comes from innovative forward thinking and collaboration. Master installers are trusted to bring products to life, and the Herholdt’s name stands behind the entire process. EXPANDING PRESENCE As the brand continues to build around the country, and in bordering nations, a new centre of excellence was announced in Cape Town in August 2023. Courtesy of Redefine Properties, the Brackengate 2 precinct is a business park in the northern suburbs, home to a number of big companies, attracted by fantastic facilities. Herholdt’s will take a 4927 m2 warehouse and 820

HERHOLDT’S GROUP

m2 office space – all with Level 1 Edge Certification – valued at R64.5 million to support expansion in the Western Cape. Close to the N1, this position is perfectly connected and will see Herholdt’s neighbour with some of SA’s biggest brands.

For the Herholdt’s Group, and others in the industry, it is certain that the energy transition will continue, and there is strong expectation that the Eskom challenges will endure, despite the appointment of a new CEO recently. Clearly, now is the time

to give yourself and your business a backup, and Herholdt’s and its network of partnerships are industry leaders. Energy provision and climate preparedness is not an area to be taken lightly. The country is and will continue to shift. Partner with the best to ensure you are not left behind. “With expanding our brand, comes expanding to different locations all over South Africa to make our services and products more readily available to all our customers nationwide. We stock a wide range of top-quality Renewable Energy products and accessories from the best brands, at highly competitive rates,” the company concludes.

WWW.HERHOLDTS.CO.ZA

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GAIA GROUP

Positive Impact

Fuels Gaia Growth PRODUCTION: James Davey

Developing innovative and impactful funds that help to advance the continent is the task for Gaia. A team of experienced fund and asset managers, the company is bringing money into Africa to build renewable energy and connectivity that will grow the macro economy. COO Denzil Kennon talks to Enterprise Africa about the impact Gaia funds are already having. 38 / www.enterprise-africa.net

INDUSTRY FOCUS: FINANCE

Denzil Kennon, COO

To solve the big problems, there is truly only one solution – money. Whether it’s infrastructure in South Africa, healthcare across the continent, connectivity in rural regions, or energy provision that keeps the lights on, consistently; when money moves solutions begin to appear. But money from where? And who? And how is it deployed? Should governments be involved? There are many issues to consider when searching for money to solve structural issues while generating returns. Ultimately, private capital must be involved, and to attract that you must have stability, security, and realistic potential around returns. The experts around generating impact-based funds, specialist Real Estate Investment Trusts (REIT), and listed infrastructure vehicles in South

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Africa is Gaia. Founded in Cape Town in 2012 to attract long-term investor capital to projects in sub-Saharan Africa, Gaia has developed a reputation for excellence in the industry. It’s ability to demonstrate strong fundamentals, a transparent model, and – importantly – robust returns make it a sector specialist with skills that few others can match. The headline projects at Gaia just now are the Gaia Fibonacci Fibre REIT (GFFR), the Gaia Renewables REIT (GRR) and the expected first close of the Gaia Africa Climate Fund (GACF) in 2024. GFFR has raised a total of c.R270m to date and will be looking to list C Preference Shares early in 2024 for a total deployment of R300m. In August 2023, GRR hit the Cape Town Stock Exchange (CTSE) as its first ever impact board listing when its first tranche of shares was listed, valued at R151.5 million. GRR will be closing out the

initial raise at R500m by end of Feb-24. GACF will finalise first close early in 2024 looking to kickstart the renewable energy ecosystem in Sub-Sahara Africa. These vehicles are aimed at providing real impact where South Africa and the African continent needs it most. “We believe we can make a solid impact in South Africa and that is the nice thing about the Gaia team – we believe in the impact focus and continuously looking to pioneer best in class in South Africa,” says COO, Denzil Kennon. THE LITTLE EDGE Appointed in 2021 to assist in the structure and implementation behind these vehicles, Kennon is a seasoned pro in the investment space. He is excited about building opportunities within a brand that is recognised for excellence.

GAIA GROUP

“The renewable space in South Africa is highly competitive. What we look to do at Gaia, is focus on solutions that give us that little edge,” he explains. “The REIT in the fibre space was the first of its kind in South Africa or Africa. Gaia Renewables REIT was the same – the first renewables REIT in South Africa. It’s about finding solutions that give investors that extra percent or two in their returns, making it that little bit more attractive. The end goal is to catalyse funding into the infrastructure space in South Africa. It helps to even out a lot of difficulties that SA has and so we want to drive private capital into the infrastructure space to alleviate the burden that government suffers with, while speeding up the entire process.” To date, the result of investment into the fibre REIT is around 30,000

homes connected with a concentration in Gauteng and the Western Cape following the acquisition of 130 fibre networks. Focused on the lower LSM markets, the Gaia team sees major scope to increase impact here considering that much of the country remains underserved and searching for lowcost, high-volume data connectivity. “We do love our REITs,” smiles Kennon. “My role is to create the platforms so that our deal team can grow the platforms. The fibre REIT has around R300 million in due diligence and when that gets approved we match the investment with specific investment projects. The moment the money comes in, we have the pipeline to deploy it immediately.” The same goes, he says, for the renewables REIT where Gaia has an

enormous amount of money working through the due diligence checks before being readied for deployment on vital energy products in South Africa. “Once the REIT has been listed with the required decision-making structures in place, the team focus turns to fundraising and deployment into quality assets. If those structures are well implemented, we expect the monitoring to align with the requisite governance structures to create a healthy ecosystem for the market. In the shorter term, we want to focus on consolidation and grow that out through the rest of this year.” INTEREST RATE CHALLENGE The challenges in mobilising money for these projects are obvious and common. Finding the correct amount

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INDUSTRY FOCUS: FINANCE

of capital, moving the money from one location to another, ensuring all legalities are in place, and doing so transparently and sustainably is no easy feat. But Gaia has experience, and its team is nimble when comes to problem solving. “Interest rate hikes and inflation have been big challenges in South Africa,” Kennon details. “When we put a product to market it is generally inflation linked. Across the board, we aim for a targeted return of CPI + 7. When you have an interest rate that keeps climbing, you start seeing bonds and seemingly less risky investments competing with your solutions. When we look at fund allocators and where capital is going, it is easier to say we should give up two or three percent to get close to the near risk-free rate.” But when interest rates stabilise,

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moving down from the current – which inevitably they will – Gaia’s products continue to provide a healthy risk adjusted return with an important space in any portfolio. A reduction in rates will also encourage those on the hunt for traditional ‘safety’ with investments, and looking at returns guaranteed by bonds. “The economic environment in SA remains tough with load shedding etc and that is a marketing tool in itself for the business we have,” Kennon explains. “It is so easy to pitch an embedded solar solution to businesses battling with an unreliable electricity supply . The bonus is that we are providing it through the lens of impact by providing clean energy as well as on a cost saving basis for the business itself. We do find that, especially in our fibre REIT, that although we try to be businessto-business, we are affected by the

end user. The end user in South Africa is struggling as inflation and interest rate hikes, driven by unrest around the world, keep placing pressure on the spend on the necessary utilities. We have responded to the market directly and we are in touch with what the problems are while reiterating that it is not a long-term problem in SA. We need to be part of the solution.” In the renewable energy space, Gaia has a model that is tried and tested, and one which gets results in a challenging space. Already, the fund has a holding in the Tsitsikamma community wind farm in the Eastern Cape and Kennon sees obvious growth to come in this industry. “We want to provide money to the development cycle so that more and more renewable energy plants are Continues on page 44

Smart, embedded clean energy solutions Blue Energy Africa is a leading South African based, Africa focussed, developer and operator of embedded clean energy infrastructure. We partner with our clients to develop lasting and impactful solutions that aid their resilience and assist with their transition to Net-zero.

www.blueenergy.africa

INDUSTRY FOCUS: FINANCE

Continued from page 42 built,” he says. “We are happy to acquire an asset on a secondary market, give our investors a return well adjusted for risk, and churn that money so we can free up the funding for developers to keep building plants. That is our specialty and we are strong in that market. We fuel developers and EPC contractors to continue with that cycle.” IMPACT FOCUS One of the core elements in the Gaia investment proposition is provision of ‘positive, sustainable impact to Africa and its people’ alongside all of the other pillars expected of a specialist asset manager. Part of the company’s commitment to ESG and impact is a mission to drive positive change for the planet and its people by mobilising investments into impactful catalytic and systemic solutions. For Kennon, an industrial

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engineering (PhD) who has worked across various financial institutions starting out at Allan Gray, the Gaia focus on impact - doing so at international scale and quality - -is the differentiator and delivers what other fund managers simply cannot. “That has been Gaia’s big focus this year,” he says. “We want to be best in breed.” Gaia’s Africa Climate Fund has been selected as one of just five funds by the International Climate Finance Accelerator (ICFA) in Luxembourg because of the evidence that Gaia can invest in operational infrastructure projects with stable cash flows allowing project developers to recycle their capital and develop new projects for the benefit of the continent and its people. The task here fits the vision. “The climate accelerator that we are part of is helping us to bring the fund to first close early in 2024. That has enabled us to be at the forefront of new

standards around impact investments. We are fortunate to have partners in the UK, Luxembourg, and Norway who can guide us. Through this collaboration, we were able to develop the right structures and list the renewables REIT on the impact board of the CTSE – the first company to do so. That was exciting and the idea that, alongside good returns financially, we can give real positive impact is really valuable.” In 2024, Gaia will look to attract more money from the global north to help drive climate positive projects on the continent. Africa is home to around 17% of the world’s population, with seven of the world’s top 20 fastest growing economies, and enormous renewable energy potential, but less than 2% of global renewable energy investment. Bringing in fresh investment is essential because if Africa is left with no choice but to power its 600 million who do not have access to electricity with fossil fuels then the world’s

GAIA GROUP

targets will be wrecked. The Gaia Africa Climate Fund aims for US$200 million that can be deployed on sustainable and renewable energy infrastructure primarily, with a secondary focus on water and sewage projects. “Gaia will be looking for ways to have private capital meet the opportunities in Africa. The participation

// SOUTH AFRICA HAS ITS UNIQUE CHALLENGES, BUT THAT IS WHAT SETS US APART FROM THE OTHERS - WE ARE A TEAM OF HIGHLY FOCUSSED PROBLEM-SOLVING INDIVIDUALS //

and success with ICFA has provided a strong position from which to match those needs between the EU and Africa, but we also need to provide the opportunity for the northern American counterparts. How do we get those interactions in place?” Kennon questions. “They need a vehicle that gives them comfort to encroach into Africa, trust is critical here. We are the team to do it. We have the background, we have the track record, and we have a history of innovative solutions,” he says, adding that Gaia has been an industry leader, coming up with many firsts for the past 11 years. Fortunately for the team at Gaia, the problem to solve is attracting money and not about hunting for places and projects to utilise it for minimal return. The opportunity provided by Africa is real. “In fact, it is enormous, and that is why we are so excited,” says Kennon. “We are so far from the saturated markets and all we need

to do find the capital to fill these spaces. We are also looking ways that can enable other asset managers and fund managers to do so in SA.” Finding the meaningful money, keeping it safe while being transparent, utilising it for change in Africa, and recycling it for wider impact is not easy. Through the various REITs and now the Gaia Africa Climate Fund, Gaia continues to show that it is committed to a cause bigger than itself. The group is talented and knowledgeable, and the proof of quality is in the returns. “I would be very surprised if any investment or asset manager in South Africa said things went exactly to plan. South Africa has its unique challenges, but that is what sets us apart from the others - we are a team of highly focussed problem-solving individuals.,” concludes Kennon.

WWW.GAIA.GROUP

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UNISURE

Powerful Protection Provider Promises Peace of Mind PRODUCTION: Jamie Waters

Global insurance solutions provider, Unisure, aims to be loved and trusted – a tough task for any insurance business. But new CEO Barry Sundelson believes Unisure is more than capable as he looks for scale in this unique and exciting operation. 46 / www.enterprise-africa.net

INDUSTRY FOCUS: FINANCE

Barry Sundelson, CEO

A powerful team is hard at work building a truly global insurance provider. An extensive range of products, at competitive prices, in an accessible manner is the aim. And The Unisure Group’s Chairman, Dr Graham Woolford, and cofounder, Stephen Conway, have, since the company’s formation in 2010, managed to deliver. The Unisure Group offers health and life insurance, and a robust portfolio of associated products, to give people peace of mind as they work around the world. Individual life, group life, global health, often provided to multinational

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corporates with employees that travel the world - all delivered by a cohesive global team - gives Unisure a unique competitive advantage. But the next stage in the company’s growth is scale. Already protecting a large number of lives and delivering key services to multiple corporate clients, Unisure has lofty ambitions. “Our aim is to protect and look after one million families per year,” declares new Group CEO Barry Sundelson, who joined the business in April 2023 after highly successful spells leading Discovery’s Vitality and Card divisions. Sundelson arrives as Unisure targets real impact following a long and strong period of building capability and brand. His ability to build strategies and work across challenging, diverse environments make him perfect to oversee significant expansion. MULTIPLY SIGNIFICANTLY “We want to take what we have now and multiply it significantly – that is hard work. We want to build a company

with scale, relevance and strength. We see interesting opportunities in the pipeline, and we expect to make significant progress,” he says. “A key for us is innovation,” he adds. “I believe that is the secret to success. We are really only just beginning. There is so much room for success here if we do things right. We have done well until now, and that is because of the hard work of Dr Graham Woolford and Stephen Conway, and I hope we can grow aggressively.” Across the Unisure group, 250 people work diligently to support clients. Headquartered in Randburg, South Africa; London, UK; and Kuala Lumpur, Malaysia, Unisure takes an obsessive approach to customer service. Sundelson highlights the company’s Bupa Global Mining and Energy Forum Health Insurance Plan, tailored to those operating in Africa’s resource sector, offering toptier hospital access globally. Care is comprehensive, from a 24/7 support centre to advice and referrals to a network of contracted consulting specialists and trauma surgeons in support of in-house medical staff. “We are a master broker for Bupa and the Global Mining and Energy Forum and that has shown really strong growth,” he says. “For multinationals that have employees moving in and out of the UK, around Europe and Asia, and around Africa, the fact that we have health and life insurance that follows them means that we can offer complete peace of mind.” This peace of mind is essential, and most of the time the principle behind why insurance of any kind is purchased. The knowledge that, should something unpleasant and unexpected occur, your needs and the needs of your family will be met is often invaluable. Yet, many in Africa still view insurance as a grudge purchase, fuelled by negative experience from low-cost organisations Continues on page 50

Leadway Umatter Plan Unveiling a Tailored Health Experience Exclusively for You

Picture a health insurance policy meticulously designed for you—flexible, engaging, and customized to align with your preferences. This is what Leadway Assurance and Unisure strived to achieve when they joined forces in a pioneering collaboration that defied convention when the Umatter Plan was introduced. This groundbreaking initiative aims to redefine the landscape of health insurance, focusing on personalization and innovation. Within the dynamic realm of customised health insurance, industry leaders Leadway Assurance and Unisure have forged an innovative partnership to reshape the landscape of comprehensive health coverage. This unprecedented collaboration heralds a new era of personalized and flexible insurance solutions, signaling a global shift in how we perceive and prioritize our well-being. Here's a closer look at what this unique partnership entails: Addressing Disparities in Health Coverage: The Leadway Umatter health insurance plan safeguards your well-being and resonates with your individuality. This plan transcends traditional boundaries, offering unparalleled benefits prioritising personalization, flexibility, and enjoyment. Recognizing the significant gap in health coverage, particularly in Nigeria where only 3% are covered, Leadway and Unisure aim to bridge these disparities by offering a forward-thinking approach to health assurance. Elevating Service Standards with the "Umatter" Plan: The Leadway Umatter plan is not merely a policy but a testament to Leadway's dedication to delivering exceptional services that exceed expectations. The Leadway Umatter Plan has been meticulously designed to empower individuals to tailor their coverage with various options, including "Serious Matter," "Daily Matter," "Opti-Denti Matters," and "Wellness Matters," putting the choice back in the hands of individuals.

Global Assurance, Local Impact: Geographical borders don't confine the Leadway Umatter Plan. It extends its coverage globally, emphasizing a commitment to providing assurance beyond geographical limitations. This international perspective sets it apart, ensuring individuals and businesses have a safety net that transcends traditional limitations. Decoding the Leadway Umatter Plan Offerings: The Umatter Plan offers a palette of choices, ranging from the foundational "Serious Matter" plan to the comprehensive "Daily Matter," "Opti-Denti Matters," and "Wellness Matters." These options cover various medical needs, emphasizing the importance of holistic health coverage, including dental treatments, eye tests, and wellness screenings. The Leadway Umatter Experience: Convenience, Flexibility, and Innovation: More than just a health insurance offering, the Leadway Umatter Plan provides an experience that embodies convenience, flexibility, and innovation. It acknowledges individual uniqueness and offers a rare combination of personalization, innovation, and flexibility, empowering individuals to choose coverage levels aligned with their healthcare needs and financial considerations. Looking Ahead: Your Health, Your Future: In a world where health uncertainties loom, the Leadway Umatter Plan is a beacon of assurance. It transcends traditional insurance models, embracing a new paradigm where individuals are not just policyholders but active participants in their health journey.

INDUSTRY FOCUS: FINANCE

Continued from page 48 who simply cannot meet the expectations of a modern customer. Unisure is different. The team is driven by an unending focus on quality, and the company enjoys partnerships with the best. “Creating a collaborative and

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inclusive environment, with diverse talent and perspectives, is vital,” says Sundelson. “Our strategy is people first, driven by our vision and values. We back that with great products and strong distribution, and we are relentlessly focused on our stakeholders. We try to live and breathe that and, while there is a long journey ahead, I

think we will get it right. We are not where we need to be yet, but if we can work in the right way then we will get to where we want to be.” LOVED & TRUSTED The Unisure vision is to be a loved and trusted global insurance provider, and so it invests in partnerships that can guarantee quality. In Zambia, for example – the centre of a copper mining boom, home to 6% of the world’s reserves – Unisure works with SES (Specialty Emergency Services) Unisure to provide healthcare in two in-house clinics delivering first-class provisions. “SES Unisure in Zambia has state-of-the-art out-patient facilities with excellent staff and brilliant services – people in Lusaka can make appointments and utilise those clinics. We also have a clinic in Kitwe, which is a primary care centre

UNISURE

that makes a huge impact locally. “I like the way SES is foundational and grounded,” Sundelson adds. “Showing a significant investment, with bricks and mortar on the ground, while having our license through which we can issue policies means our clients can come to the clinic for free. But if non-policy holders want to come to the clinic, they can pay for services. What I like about the model is that it gives strength and shows commitment. It does take time but if you work with the right people then it is excellent.” 24/7, 365 Quality service delivery is ubiquitous in the Unisure offering. Whether it’s healthcare in Africa and worldwide, individual life insurance in Asia, or group life in the UK and Europe, the company has worked hard to understand what clients expect and is keen to be seen as a partner rather than a cost. Sundelson

stresses the spread of Unisure and its ability to support clients globally. “In Africa and Asia, people want comfort should they have an emergency. We have a fantastic 24/7, 365 medical emergency team, Unisure Assist, that is able to conduct worldwide evacuations. We also have our own ambulances and paramedics, and we arrange air ambulances, but in other territories we have outsourced partners who can ensure patients are cared for correctly.” He highlights the partnership with Scottish Friendly in the UK as groundbreaking, allowing Unisure to access a large market without quality compromise. “We are the sole partner offering group life and employee benefits. There is income protection, accident and disability, critical illness etc,” he says. “It took a long time to get that partnership done but it is very

important because it gives domestic UK companies comfort that we are written on A-grade paper and we are backed by a local player. We do reinsurance with a variety of specialist companies, but the business can offer brilliant rates, quick turnaround times, quality service, and we can offer bespoke underwriting because we are able to price very effectively and competitively. We hope that our rates are not able to be beaten.” He adds that domestic group life is also on offer in the UK where Unisure does its own underwriting to give it the ability to look at interesting risks. Across the African continent, the growth strategy centres around building partnerships and continuing with the successful rollout to date. “We want to expand our healthcare into Africa, and we want to roll out the SES Unisure model elsewhere. There is a particular art to doing that and we believe we understand it well,

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INDUSTRY FOCUS: FINANCE

Sundelson asserts. “Our partnership with Mediplus in Mozambique is strong and we are looking after thousands of lives. We provide access to healthcare for those people and there is fantastic expertise within that partnership. There is a whole process around dealing with claims and helping clients and our expertise is first class.” Healthcare growth will come in Kenya, Nigeria, Mauritius, and Rwanda where Unisure’s presence is under-developed but where strong cooperation is in place to deliver unrivalled healthcare services for clients. Through Umatter, a Unisuredeveloped structure, clients can choose various add on options to protect against family, wellness, and even dentistry risks whilst always having core

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or serious matters covered. World-class facilities are used to deliver services and this can be in-country or internationally. But the distribution model that Unisure has built over the past decade will not change. The company doesn’t sell directly and distribution goes through intermediaries. The partnerships are vital and the intermediaries enjoy being able to sell what would not usually be available from traditional mass market players. “The products they are able to offer are very unique and that makes for a positive environment,” says Sundelson. THE BRIGHTEST PEOPLE All of this advancement and development is helping to build a new, different, and wide-ranging platform for Unisure to grow from.

None of it would be possible without the beating heart of the business and the industry – good people. “We have a brilliant team. And going forward, we have to attract the best talent and work with the brightest people. We are busy recruiting, and we hope for some strong, new additions to join us soon. It’s a peoplefirst industry,” states Sundelson. By creating a clear and transparent vision, that is communicated through all corners of the business, Unisure’s team is united on its journey. Creating this cohesiveness has been a big part of Sundelson’s initial responsibility. “We must be obsessive about our customers, and we have to make sure we are there for them when they need us the most. To do that, you have to have a great team with

UNISURE

accountable leadership,” he says. “You must have brilliant ideas with fantastic products. We have all of that and I think that means we will go far. “There are brilliant competitors out there and we have to make sure that we are able to be focused and hungry enough. We will succeed

// WE MUST BE OBSESSIVE ABOUT OUR CUSTOMERS AND WE HAVE TO MAKE SURE WE ARE THERE FOR THEM WHEN THEY NEED US THE MOST //

by obsessing over our clients while staying humble and grounded.” As is always the case, experience counts for so much in the insurance industry. When combining the talent in Unisure, with a strong product range, and international reach, it makes for what Sundelson calls a “really good platform”. “We have provided insurance to international bus drivers in Turkey, to security professionals sweeping for mines in North Africa, and a whole host of other unusual risks. It gives us a slightly different way of looking at things and that unique edge that makes such a difference.” He is clear that the business has so much scope for growth and is proud to be a part of something different. But Unisure must continue to deliver

in order to reach its potential. “We have a unique offering,” he concludes. “We offer multinationals complete peace of mind. We have a very interesting mix of clients with health insurance for Africa, clinics in Zambia, administration in Mozambique, and international private medical insurance. We have a combination where we are making an impact in Africa and then an emerging business in the UK – it’s really exciting.”

WWW.UNISUREGROUP.COM

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K-WAY MANUFACTURERS

Deep-Rooted K-Way

Thrives in Tough SA Climate PRODUCTION: Eleanor Sarbutt-King

K-Way Manufacturers is providing South Africans with clothing that stands up to the elements, allowing people to keep hiking, running, climbing, and camping, whatever mother nature brings. Made in Cape Town, and sold through Cape Union Mart, the brand is as strong as they come. GM Bobby Fairland tells Enterprise Africa more about growing a lean fash-tech business. 54 / www.enterprise-africa.net

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INDUSTRY FOCUS: MANUFACTURING

or 90 years, Cape Union Mart has been a South African retail stalwart, present and recognisable on the highstreets around the country, through rain and shine. Its brands are well-known for performance in the outdoor environment, across street, forest, mountain, and river, always encouraging that sense of adventure that exists in everyone. Under the Cape Union Mart umbrella is K-Way, a brand that promises ultimate performance in the elements. Technical, practical, and versatile, K-Way is South

African-made and favoured by locals who trust that when K-Way says ‘waterproof’, it means it. Crafted in Cape Town by K-Way Manufacturers, the brand has grown since its launch in 1981 to take the outdoor market by storm, and GM Bobby Fairlamb tells Enterprise Africa that few can compete with the expertise on show in the Ottery factory. “The word we use to describe our product is ‘fash-tech’ - it is fashionable technical clothing,” he says. “There is a traditional need for warm jackets, windbreakers and

rain jackets but we have taken it to a new level, making it modern and fashionable. We have introduced fresh colours to ensure people look good, but we always keep the technical features so that the end user still gets what they require from the garment.” K-Way is not a fashion business, he adds. There are no ‘run-of-themill’ products for general consumer categories. “The basis is all technical clothing, and all of our products are highly researched and tested. We have a full laboratory to test every raw material that we buy to

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K-WAY MANUFACTURERS

Texever International is a textile agency based in Cape Town, South Africa, representing leading international fabric manufacturers

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We are proud to be associated with KWAY in the development and supply of fabrics for this highly successful, proudly South African brand.

ensure it meets the standards that we tell our customers it will. We test water resistance, wind protection, colourfastness, and wearability. We have a full design and product development team that works hand-in-hand with the retail buying and design teams, and they come and spend time in the factory to look at the next stage of development for the next season – it’s a continuous process. We are always trying to make sure we have at least 30% new product every six months.” The portfolio is robust, including expedition coats, shell jackets and pants, ski jackets, puffer coats, fleeces, boots, sleeping bags and much more. Cape Union Mart has always been a retailer focused on long-lasting,

strong, well-made products that are as useful as they are beautiful. In fact, the company’s establishment came when founder Philip Krawitz decided to open an outlet for servicemen and tourists passing through Cape Town, requiring products to keep them warm and dry on their travels. Today, Cape Union Mart is more than 200 stores across South Africa, Namibia, and Botswana, and K-Way features in all. TAILORED GROWTH Clothing and textile manufacturing remains a key sector in the Cape Town economy, contributing significantly to formal employment and well-known for quality output. K-Way is proud of the set-up it has developed, and Fairlamb

highlights the impact on the region. “We have around 350 people in the factory, and outside of that, in external Cut, Make, and Trim businesses (CMTs), there is probably another 100 people employed full time on our products,” he explains. “We have a production facility that makes everything from scratch. When a product hits the factory floor, we can turn it around in six weeks but we are always planning at least 12 months ahead to fill our capacity. We like to make sure we are never sitting at a standstill. “We try and do as much as possible inhouse but we do have a couple of products that are made by SMMEs that specialise in certain products. We give

Mayoral Committee Member, Alderman James Voss visits K-Way factory in Nov 2023

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INDUSTRY FOCUS: MANUFACTURING

them the design and they produce for us to finish for the retail customer.” Designs, concepts, and stylings are handled by the local team, with K-Way always encouraging innovation and research to stay at the cutting edge of the industry. “We are continually developing new products and evolving products. We have taken on young design students to complete their internships and they bring new thinking. We have had an interesting year with some really bright minds coming through,” says Fairlamb. “Our factory places a big emphasis on health and safety, and we have an international rating to measure ourselves against best-in-class, despite not supplying to international markets. “We are strict in our supply chain and we look for local companies that are BEE compliant. We always deal with companies that are compliant with international standards around labour practice. We also look for companies

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that can supply eco-friendly raw materials. We are using a lot of recycled materials in our products and some of our main products are completely recycled. As an outdoor focused company, we like to push that agenda as our customers are like-minded in supporting eco-friendly products.” Some fabrics that are not manufactured locally are imported, but the focus on quality tops the agenda when searching for partners – all input must be appropriate and stand up to the task for which it is deployed. TURNAROUND Fairlamb is pleased with the current state of the business, but it hasn’t always been warm and cosy. When he was asked to join the business by third-generation family owner of Cape Union Mart, Philip Krawitz, K-Way Manufacturers was not in a good place, not competitive, not innovative, and not sustainable. “We were losing money,” he

remembers. “The owner was under pressure. He asked me to stop the leakage and try to break even.” Krawitz did not want to close K-Way and sacrifice 160 jobs. He was keen on putting people above profits and tasked Fairlamb with a turnaround. At the time, the textile manufacturing space in South Africa was struggling. As the country embraced democracy and freedom in the post 1994 years, the world opened up as restrictions were lifted – South African retailers could search internationally for the best products, and this meant pricing in the East became attractive. “Our industry had not kept up. We were not competitive and not able to supply retailers with what they wanted.” Fairlamb had grown up in the industry, working across a number of different roles, and he understood the complex nature of running a factory while supporting successful business. “I realised that we must change

K-WAY MANUFACTURERS

and there was new cluster that had just been formed called the Cape Clothing and Textile Cluster (CTCC). This was headed by a group who came out of the automotive industry and realised they could share their experience of lean manufacturing with our industry.” When, in 2009, the government introduced industry incentive grants that allowed for the purchase of new machinery for manufacturers that added value in the sector, K-Way invested and started to embrace lean principles. These ideals promote improved production, reduced costs, improved quality, and increased profits. “It transformed the business. We became very successful and we started making money. In the second year after I joined, we broke even and then we started making profit. We have been profitable ever since and that has been a massive achievement. It has justified our existence and we have learned a lot.” No one was retrenched through the tough times, and the company

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INDUSTRY FOCUS: MANUFACTURING

continues to grow, searching for new talent to drive business. The people above profit mantra continued through the recent trials with the Covid-19 pandemic. While many retailers knee-jerked into redundancies, K-Way and Cape Union Mart were clear about the value and assets in the companies.

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“During Covid, every single member of staff within certain thresholds earned their full salary even though we were sitting at home for six weeks. Everyone was paid in full, and no one was retrenched. Even those earning more, who took a small hit, were eventually repaid what they missed out on.”

Now, K-Way runs a sewing school, an internship programme, and a partnership scheme to help build local CMTs and other potential supply chain partners. Building people is a key ethos that runs through this business, which is ultimately a people-focused entity. CONSOLIDATION Currently, K-Way Manufacturers is consolidating. The business has grown extensively alongside Cape Union Mart and is busy developing exciting new products for the next season. No new factories are planned for the short-term, but Fairlamb is keen on continued efficiency and productivity improvements. “We have expanded rapidly, growing from 160 to over 300 people, and taking on the CMTs,” he says. “When we had 160 people, we were doing around 25,000 units annually. Now, we are doing more than

K-WAY MANUFACTURERS

600,000 units. The growth in product has outpaced the growth in people but our efficiency and productivity has improved. We place a big emphasis on training and development, and also incentivising staff.” At the same time, K-Way is promoting sustainability by offering repairs to its products. One of the only brands in the country to offer cost-effective repairs in the same factory that manufactured the product originally, this genuine attempt to make products last longer and go further highlights the ambition of the company and its owner to improve sustainability through a philosophy around reduce, reuse, and recycle. “We do around 1000 repairs each month and if someone stands by the braai and gets a small hole – where they would usually have to throw that jacket away - we will repair it for a small charge. It’s cumbersome for

us but it’s really appreciated because it keeps products alive and is much more sustainable,” details Fairlamb. “We have a store in Cape Town where we have put a repair station in place for people to drop in garments for repairs which can sometimes be done immediately. It’s a great story and a great selling point for our products. “We actually have different colour patches applied to jackets and people wear them as a badge of honour, proving that they haven’t simply thrown a jacket away just because it had a small rip.” Fairlamb is a believer in the power and skill in the local industry and is desperate to see further growth of not only K-Way Manufacturers but also of the textile manufacturing sector which has been so important for creating opportunities the Western Cape. “Our internal training school is focused on developing employed and unemployed

unskilled youth to uplift and guarantee the future of our industry. “It never seems to get easier,” he smiles. “Covid knocked everyone a lot and there has been a lot of rethinking and repositioning from everyone. We continue to fight the good fight, and we have been successful.” How to guarantee further success and keep both customers and retail partners happy for the next 90 years? Fairlamb is looking internally. “Our focus is on our people – we put them first while delivering a product that stands up to what we say it will,” he concludes.

CAPEUNIONMART.CO.ZA/K-WAY

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JUMBO CLOTHING

Stylish Jumbo Shapes for Further Expansion PRODUCTION: Eleanor Sarbutt-King

Understanding and building communities like few others, Jumbo drives value for customers through sourcing brilliant fashion products and selling at fantastic prices. This has made it a trusted and reliable brand in South Africa’s rural towns for more than four decades. CEO Alan Scheckter and COO Brad Westaway tell Enterprise Africa more about continuing the impressive progress with sustained growth. 62 / www.enterprise-africa.net

INDUSTRY FOCUS: FASHION

Alan Scheckter, CEO

South Africa’s Jumbo is stitched into the community, proudly bringing local people the fashion they want, for the entire family, at the right price, since 1975. Whether its jackets and jumpers, or hats and shoes, Jumbo provides highquality, high fashion, at low prices. For CEO Alan Scheckter, a serial entrepreneur and trader, Jumbo goes beyond just stores with good products. He tells Enterprise Africa that the business is about both delivering and creating value while enhancing the shopping experience in South Africa’s rural communities. “Because we have been around so long, we are the biggest in those markets. We see grandparents, parents, and now children coming to us, all from the same family so it’s a generational tradition that’s being continued,” he says. “The provenance that the business has in rural areas, and the association we have with the community is important. We provide a huge amount of value through job creation in areas that are generally less fortunate than those in the

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cities. If you go into our revamped stores in these areas, what we bring to an otherwise basic shopping environment is mind blowing. People are so excited about access to unbelievable products at an affordable price but within an incredible environment. Seeing people inspired and uplifted because of that shopping experience in their home town is very exciting.” NEW SITES? Jumbo has a strong national presence with 103 stores across South Africa, mainly in the larger rural regions around the Eastern Cape. More than 1200 people work across the network, with Scheckter driving a flat structure and a family feel, ensuring an egalitarian approach to opportunities. But to grow the business he acquired in 2007, the focus for Scheckter is on finding suitable sites, in new areas, where other retailers are not diluting the market. “We are keen to expand north, and we want to grow further across the Eastern Cape and Western Cape,” he says.

The company prefers physical expansion, with new stores over an online outlet, because of the nature of its customers. Over the past four decades, Jumbo has created close ties with shoppers, understanding buying patterns and customer aspirations better than others. “We have strong relationships with our partners and we have an ethical loyalty that goes both ways. There are some with which we speak every day,” says Scheckter. “We have been with some landlords for 30-40 years and while the situation is tough, with all the retailers looking for the best space, we have good relationships. We are looking at taking on a partnership with a property specialist who can assist us to unlock opportunities. “We have some really strong areas, and we have very loyal customers who have been coming since 1975,” says COO Bradley Westaway. “The challenge we have is that our trading environment is in sprawling rural towns, but still very rural. That involves certain periods of the month when people come from villages, which tend to be 3km to 20km away from the town, using taxis or buses. They come to town once or twice a month and they buy their wares and do other tasks. They generally won’t come back into town for at least another two weeks because of the cost and logistical factors. For us to look at an online offering would be extremely challenging due the fact that the majority of the customer base lacking infrastructure is these live in villages that are geographically difficult to reach and limited on road, signage infrastructure.” Typically, Jumbo customers sit in the mid to lower LSM groups however remain fashion conscious and aspirational. In these less-metropolitan environments a broad selection can be limited and Jumbo has always attempted to fill that gap with a diverse offering and something different. “We have been upgrading existing stores with a new look and focusing

JUMBO CLOTHING

on buying fantastic products to merchandise into these spaces which under certain circumstances would not be available,” says Westaway. “The customers journey into town is an event and is something exciting for our valued customers. It is a tangible, transactional trading environment that we have created, and that is a major contributor towards our revenue.” He adds that the exploration of niche submarkets has been harnessed by Jumbo as one of the only retailers to truly understand the subtle differences of markets in which it operates. The back-to-school market is key for the company and drives revenue around the post-holiday months. The Xhosa Amakrwala traditional ceremony is also a strong driver for Jumbo, occurring twice a year. “We are the biggest supplier of clothing and blankets for the Amakrwala initiatives during this period,” says Westaway. To stay apace with these regular events, the company has opened between 10 and 15 stores per year (on average) over recent times. Celebrating store number 100 in Ntabankulu in

June 2023 was a real milestone for Jumbo, with numerous promotions and special offers in the store, but the team doesn’t want to slow soon. “We want to stick to that growth trajectory, the limiting factors being the difficulty of finding great sites which tick all the boxes pertaining to geographical location, position within the town, the rentals and operating costs having to align within our business model,” says Westaway. “In September last year, we opened four stores and not having a large

dedicated team to focus solely on opening new stores places additional pressure on our human resources in order to also manage the myriad of other tasks a business of this size continually requires, in saying that when a good site suddenly becomes available and if the numbers make sense, we go for it.” DIVERSIFICATION While growing its footprint, Jumbo is looking to diversify its product portfolio to offer an increased basket, specifically focusing on complementary

Ntabankulu Store Opening

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INDUSTRY FOCUS: FASHION

// THE CHALLENGE WE HAVE IS THAT OUR TRADING ENVIRONMENT IS IN SPRAWLING RURAL TOWNS, BUT STILL VERY RURAL //

and drive promotions and customer interaction through that, also having to take into account that connectivity can limited in some instance in but mostly out of the towns.”

products that its core demographic is purchasing on visits into stores. Historically based on the strength of the buying team bringing in fashion products from reputable sources, and relationships built by Scheckter and team over decades, adding new products is an exciting and never-ending project for Jumbo. “We are quite entrepreneurial, with a very flat structure. We buy very cleverly, and we are wise with many years of experience in that regard. Some of the relationships we have with suppliers go back over 40 years,” Scheckter says

STRONG FUNDAMENTALS The two fundamentals behind Jumbo are the ability of the team to bring in quality goods that can be sold at the right price, and the competence and efficiencies to manage a large store portfolio that lives up to valued customers expectations, assisting in ensuring continued support and generational relationship with the brand. “We have grown organically and never taken on high debt levels. This, combined with a strong, committed and dedicated team and flat structure with a family-like environment makes it a powerful and dynamic operation,” says Scheckter of the underlying nature of the business. He has always been able to spot a deal and knows about selling. Starting out with a simple hot dog stand, growing to become a wholesaler and eventually importer and distributor, Jumbo was his client when he brought in leather jackets from Turkey. He took control of the business when it realised financial struggles in 2007, before gaining 100% control in 2018. “My main focus is the buying and trading and my strength is not the administrative part of the business,” he smiles, tasking Westaway and the management team with keeping other elements steady, especially human capital and the growing problem of crime and shrinkage. “We have just partnered with a company to focus on training, skills development and gap analysis, and we have put a lot of effort into restructuring our risk department to deal with the ever present potential of theft,” the COO highlights. “We have to take these things into account in our trading environment and we have structured the risk team to be extremely focussed on reducing these particular challenges, having

of the fashion partnerships. “We have been looking at bringing certain auxiliary services on board to the existing Jumbo offering have been trialling some exciting additions which have proven to be having some success to date,” details Westaway. This, he adds, will be fuelled by various advertising campaigns and special offers, all designed to make the shopping experience more exciting and more beneficial for customers. “We are working on implementing a basic but effective loyalty programme, and are obviously very active on the various social media platforms

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JUMBO CLOTHING

THE HOME OF SOUTH AFRICAN FASHION Fashion is one of the truest ways to express one’s identity, and we believe in giving people the means to do just that. Even though, since 1968, the style of K7 has shifted with the fashion, its manufacturing methods have not. Knitting, dyeing, cutting, attaching, the embroidery and assembling the pieces: these five steps, requiring expertise and an excellent eye for detail, give the K7 its inimitable style. Our intention is to give our customers the confidence to be who they want to be through everything we do. #SHAREYOURLOOK

successfully reduced our shrinkage down from 0.8% to 0.35% which is extremely pleasing. Things are ever evolving, we don’t have outsourced guards and instead focus on working with the managers to ensure they have the correct staff compliment on the store floor, in the right departments and undertaking departmental stock counts on an ongoing basis supported by annual stock takes. This has, alongside various staff incentives, contributed towards substantial savings and improved operational structures.” Logistics in rural South Africa, moving the products from DC to 103 different stores is another challenge on its own, necessitating a well-structured and planned distribution network. “It is more rural, and it is different to the established centres in the country,” admits Westaway. “Infrastructure,

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security, local knowledge – you must have partners that can deal with scenarios that 99% of the time wouldn’t occur in other environments. Our stock has to arrive in stores on time for the various seasonal, promotional and varied campaigns we run at certain times of year.” Clearly, there is a lot to look forward to at Jumbo. The team is ambitious, the brand is well-recognised, the fashion is amazing, and the community that Jumbo services continue to build a thriving and strong, mutually beneficial relationship. Scheckter is keen to push forward as Jumbo takes more market share in its chosen sectors. “We are run with integrity and strong values and have a togetherness that you don’t find elsewhere. Everyone is treated equally and developing our people is something that gives me great

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pleasure. Someone that has come in as a casual then progressing through the ranks and going on to run a store, then becoming an area manager looking after a portfolio of 10 to 15 stores is very exciting and very rewarding. “The business is as strong as the people and their commitment, and we have a committed bunch.” The company, as always, invites everyone to come and experience a unique shopping experience, where you can get the best products at the best prices while feeling the Jumbo love..

WWW.JUMBOCLOTHING.CO.ZA

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WESTERN CAPE BLOOD SERVICE

New Site Allows for Strong Flow at WCBS PRODUCTION: Jamie Waters

The new beating heart of the Western Cape Blood Service in Maitland is allowing the nonprofit organisation to continue growing as it delivers one of the most vital healthcare provisions across the province. However, the call for donors never lulls, and the team is desperate for increased supply at a peak time of year.

The healthcare industry in South Africa requires blood donations to continue delivering critical care to those in need over this holiday season. As people break from work for a well-earned rest, many travel away from their homes, and away from blood donation centres. Stocks deplete, and when hospitals make the call for the vital input, the pressure is felt. It’s a worldwide problem. Healthcare providers in all countries need larger supplies. Blood is used

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in many scenarios, from childbirth to surgery to serious accidents and more. But without donations, lives at left at risk. In December 2022/January 2023, in South Africa’s Western Cape alone, there were 131 road fatalities. At Chris Hani Baragwanath Hospital in Johannesburg, 70% of all admissions are emergencies – with around 160 victims of gunshots every month. And there were more that 1.2 million births in the country 2022. In these scenarios, blood stocks are a necessity.

In the Western Cape, blood donation is managed by the Western Cape Blood Service (WCBS). A non-profit organisation, WCBS supplies safe blood and blood products to all communities the province and prioritises safety at all costs. Whether it’s blood donors or recipients, the organisation is clear in its commitment to safety and operates to WHO standards, complies with the National Health Act, and is accredited by the South African National Accreditation System (SANAS).

INDUSTRY FOCUS: HEALTH

// THE LAST FIVE YEARS HAVE BEEN CHALLENGING BUT SUCCESSFUL. THE PANDEMIC MADE WORKING CONDITIONS DIFFICULT AND WE HAD TO CONTINUE SEAMLESSLY THROUGHOUT THAT PERIOD // 85 YEARS AND COUNTING The history of the service goes back a long way – more than eight decades in fact. This year was the 85th anniversary for WCBS after starting out life at Groote Schuur Hospital when the first meeting of the Cape Peninsula Blood Transfusion Service was held. Back then, blood was transfused straight from donor to recipient. After years of growth and development, and a surge in demand through periods of instability and conflict, the service has become a national asset. Currently, WCBS collects 150,000 units of safe blood every year. That blood is used to impact the lives of more than 455,000 people. This is key in the claim from the organisation that for every single person that donates blood, three

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lives are potentially saved. The legacy is significant and the message is clear – more must donate, and donations must continue throughout the holiday season. To maximise exposure, WCBS recently set up in various retail malls around the province, taking advantage of sentiment around the season of giving, explaining to the public the importance of donating. Titling the effort ‘Red Saturday’ after the infamous Black Friday events, everyone was a target. Anyone can donate – as long as you are between 16 and 75, weigh 50kg or more, living a healthy safe sexual lifestyle, and in good general health. CEO and Medical Director, Greg Bellairs, says that the recent move to a new premises – the latest milestone for the essential organisation

– is helping it to become more efficient and grow in the future. “The last five years have been challenging but successful. The pandemic made working conditions difficult and we had to continue seamlessly throughout that period,” he recalls. “Our footprint has expanded markedly across the province – we have regional branches in Worcester and George, and blood banks in every health care facility throughout the province. “One of the biggest projects we’ve done has been the relocation of our headquarters. We were in Old Mill Road for well over 30 years in a very old building and several challenges started to become more and more pervasive. The first was that we started to run out of space there. Second was that we did not have our warehouse on site. The shape and size of that property meant it was very difficult to complete significant expansion.” The decision was made to relocate to a new site, but few options were available that suited the unique needs

WESTERN CAPE BLOOD SERVICE

of the WCBS. Timing was also difficult as the pandemic restrictions made it challenging to meet and discuss. Eventually, a new site in Maitland was chosen and a complex build process began. “It was a greenfield build and we started with a vacant piece of land,” says Bellairs. “We completed the building in late 2022 and the move – another significant project in itself – took three months to complete. One of the biggest challenges was that we needed to continue all our operations without interruption – processing, testing, and distribution of blood had to continue as normal.” 20% larger and with space for the warehouse to be incorporated, the new building on Oude Molen Road replaces the site on Old Mill Road where the service had been located for 32 years. Room for more staff and more activity, as well as being better connected, make the site perfect for an expanding organisation. The three-month relocation process was completed and the focus for increased donations continues. “There are several advantages to where we are now,” says Bellairs. “The first is our proximity to the major freeways. Secondly. we are able to have all operations in the correct place – our laboratories are now on the ground floor and this is important because they house a lot of big and heavy equipment and we no longer require cranes to move things around. Having the warehouse on site is a huge advantage and we are now able to plan and store everything we need. We also have space to grow and we are hopeful that this site will gradually enable us to increase capacity - which is inevitable as the province continues to grow for at least the next two decades.” MUCH-NEEDED According to the World Health Organisation, half of the blood donations collected around the world are in higher-income countries, home

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to just 19% of the global population. In sub-Saharan Africa, chronic shortages of blood threaten the major groups who receive transfusions – women and children around the time of childbirth. To close the gap, an everlasting campaign is in place – with various efforts throughout the year – to imprint the idea of donating in the Western Cape on the mind of the conscious public. With support from the private sector and other media outlets, the message is strong and consistent. “By donating one unit of blood, you get to save up to three lives,” says Marike Carli, Public Relations Manager at WCBS. “We are inviting our donors to please support us by bringing a friend when you come and donate and in doing so inspire others to donate blood. We are hoping to welcome 200 or more new blood donors to our blood donor family.

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No matter who you are or where you are from, we urge you to donate blood. “Heroes don’t get cold feet; they step up and save lives,” she adds. Thanks to the hard work of the service over the year, the infrastructure is in place, the system works, and the opportunity for life saving donation is more than potential. WCBS makes it a reality today. This non-profit delivers a gift that keeps on giving. Support today.

WWW.WCBS.ORG.ZA

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IDWALA INDUSTRIAL HOLDINGS

New Tech Catalyses Efficiency at Idwala PRODUCTION: Jamie Waters

Atang Maboee, GM Carbonates, Industrial Minerals and Magnetite at Idwala Industrial Holdings tells Enterprise Africa more about the company’s drive for efficiency through technology and fostering an innovative culture through investment in people.

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Atang Maboee, General Manager Carbonates, Industrial Minerals and Magnetite

INDUSTRY FOCUS: MINERALS

Growing crops, feeding livestock, building infrastructure, supplementing industrial processes – growing the economy; the products delivered by South Africa’s Idwala Industrial Holdings catalyse development and progress. The company, owned by the Bud Group, works across industrial minerals, mainly lime, carbonates, pyrophyllite, and magnetite, servicing a diverse client base with high quality minerals that are essential in various projects in agriculture, construction, infrastructure, and much more. Idwala’s world class mining operation near Port Shepstone, KZN is famous for producing the whitest carbonates available anywhere in the world. A processing plant in Phalaborwa upgrades magnetite that is extracted as a by-product of phosphate mining. A large mining and

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processing operation in Danielskuil in the Northern Cape produces highgrade calcitic limestone for a range of uses, and a milling operation in Benoni transforms pyrophyllite mined from Witpoort in North West for use in the paint and coatings industry. Idwala is nationally significant through the products it provides and opportunities it creates among its more than 800 people. GM Carbonates, Industrial Minerals and Magnetite, Atang Maboee, explains that Idwala consistently invests in growth and advancement, nurturing a culture of excellence that local competition cannot match. “Idwala is a big company but the opportunities you are given allow for recognition for good performance,” he tells Enterprise Africa. Joining the business after varsity, Maboee took advantage of the Idwala bursary, studying mining at Wits. He

came back the company starting out as a trainee engineer. “I was fortunate to be thrown in at the deep end because of the needs of the business at that time. I had the opportunity to work on different projects outside of just mining and I worked in a plant in Johannesburg before returning to carbonates as a quarry superintendent.” He quickly demonstrated a strong skillset and became quarry manager, taking on more and more responsibility over a short period. He oversaw the pyrophyllite and magnetite operations before becoming GM for the entire carbonate portfolio. In 2017, he joined the Executive Committee and in 2021 Maboee was appointed as a board member, aged 31. Today, he leads Idwala’s industrial minerals division and is excited about new technology being Continues on page 76

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INDUSTRY FOCUS: MINERALS

Continued from page 74 introduced to drive efficiency. “Our new ore sorter is a big thing for Idwala and for the Bud Group in terms of what it will bring for the business and within sustainability. “In industrial minerals, we mine calcium carbonate which we process through crushing, screening, and lengthy beneficiation to improve quality (chemistry and colour) via reverse floatation. From this business, we supply three core markets: Agriculture, where our product is used for treating soil; animal feed, where our product is a calcium supplement, particularly for chickens; and the glass industry with two major companies as key clients. On the

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higher end, we also supply the plastics and coatings industry where our product is used as a filler,” he details. ORE SORTING In Port Shepstone, the calcium carbonate deposit held by Idwala feeds the Kulubrite product range and a new ore sorter machine from REDWAVE ROX is pushing productivity. “We hold two of the best calcium carbonite deposits in the country – unique in terms of their quality and scale. More specifically in industrial minerals and carbonates, we have a unique deposit as it has gone through a multitude of geological processes. We had deposition and we had granite intrusives, and there is now the brightest and whitest product in the

world,” he says of the resource. “With that process, the intrusives didn’t just upgrade the deposit, they also remained and made it a bit of a challenge to mine. From a geological perspective, it is very complex and becoming more complex as we continue to mine. Mitigating against this, we are in the process of commissioning investment into the new ore sorter. This is technology to enable us to process the material we get from the deposit in a very sophisticated way.” Currently, the company is in the commission phase but is running production. Investment planning around this upgrade began in 2020 and, while there have been delays thanks to the pandemic and the Continues on page 78

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INDUSTRY FOCUS: MINERALS

// OUR FOCUS HAS SHIFTED FROM BEING A COMMODITY SUPPLIER OF CALCIUM CARBONATE TO BEING A COMPANY THAT PROVIDES SOLUTIONS FOR OUR CUSTOMERS. WE ARE SOLUTION-DRIVEN AND WE ADD TO THE VALUE CHAIN // Continued from page 76 infamous KZN floods, Maboee is happy to have the new asset contributing. “It’s all around improving the required tons to get the same volume. Without, you have to mine much more for the same output,” he explains. “It’s good for the environment and it saves mining costs. It also improves consistency and quality of the material that you send in from beneficiation. From there, there are obvious knock-

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on benefits in terms of chemical consumption, drying costs, energy cost, and maintenance cost. Improved quality means less silicates, which are abrasive and wear on your plant. This allows us to attack markets from a quality perspective that we otherwise wouldn’t have been able to target.” Idwala, he furthers, is responsive to changes in technology and the Bud Group is also keen on harnessing technology to improve operational performance. Before installation

of the new ore sorter, an ore body modelling system was employed to enhance predictive mining. “That is all about predicting future quantities and qualities. Mining must be efficient and effective, and technology has certainly helped with that.” SOLUTIONS PROVIDER Maboee’s focus for the future is to see Idwala enhance its reputation as mining and industrial minerals business, becoming more involved with its clients, and becoming a solutions provider. He wants to see the company use its vast knowledge and expertise to become extensions of client businesses, solving problems wherever necessary and adding value. “We have established a technical partnership with the country’s leading supplier of calcium carbonate where our goal is to continue as a leading provider

IDWALA INDUSTRIAL HOLDINGS

in sub-Saharan Africa while working on projects where we add value. Our focus has shifted from being a commodity supplier of calcium carbonate to being a company that provides solutions for our customers. We are solution-driven and we add to the value chain,” he says. This focus will allow Idwala to grow alongside its clients, reducing risk in the long-term. “In magnetite, we upgrade and process to a fine grade to supply the coal washing industry. We supply locally but we also export to Zambia where it is used in a separation process to upgrade the coal. We have recently increased our capacity from 120,000 to 150,000 tons and we align with growth of our customer in that region,” he adds. “We mine limestone, we process it through calcination on kilns to produce calcium oxide, and that goes into the pyrometallurgical,

water purification, and flue gas desulphurisation industries where our main customer is Eskom, treating the sulphur that comes out of their processes. Eskom has challenges but as their demand grows, we will grow too.” The Bud Group is a keen supporter of growth within its portfolio and has been on the expansion journey recently acquiring Walvis Bay Salt in Namibia in 2018 and Hubble Lithium earlier this year. Being part of a company and group with ambition for growth is stimulating and promotes forward-thinking through innovation. Maboee is thankful for the opportunities he has gained with Idwala and is looking forward to continued expansion of the business, using a perfectly crafted skillset to deliver. “Being a young leader, specifically in KZN, was a tough challenge but is something that I am proud of. When

I came onboard, the unit was making a loss at a net operating level. Turning that around in a year, and increasing the EBITDA within two years was a real success. It’s a steep learning curve but I am in a company that enables growth and learning,” he says. With this culture, as well as an ongoing focus on quality process and product, Idwala is well-positioned to thrive as the markets it serves boom. Critically, Idwala is a company that customers know they can rely on, and this encourages positivity within. As the economy and the country search for expansion, Idwala stands as an engine of growth – exactly what is required in South Africa right now.

WWW.IDWALA.CO.ZA

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RHEINMETALL DENEL MUNITION

RDM Targets Further Global Growth PRODUCTION: Eleanor Sarbutt-King

South Africa’s Rheinmetall Denel Munitions is taking market share as purchasing of defence products increases all over the globe. An industry leader in manufacturing, with a long history in SA, RDM is a key player for the local economy and for its international partners.

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INDUSTRY FOCUS: MANUFACTURING

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The world’s largest weapons exporters include the US, Russia, France, China, Germany and more top economies. With exports going around the world to important markets including Saudia Arabia, Australia, and Japan, the opportunity is big for those that can demonstrate quality, reliability, and price sensitivity. At a time of such uncertainty across the world, and conflicts flaring up quickly and at scale, the defence market stands as a vital contributor to national security as nations look to enhance their presence. But it’s not always the obvious exporters who have the best products. It’s not necessarily the traditional markets – well-known for defence equipment manufacturing – who can be flexible and tailor bespoke offerings. From South Africa – a country responsible for R3.3 billion worth of

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weapons exports in 2021, according to the National Conventional Arms Control Committee (NCACC) – its market share is relatively small. But this is changing as the demand for weaponry alters in its nature and timeframe. In the first half of 2023, South Africa experienced significant growth in exports, reaching R3.8 billion for munitions alone citing the rise in military spending globally following Russia’s invasion of Ukraine. Central in the country’s increase in presence is Rheinmetall Denel Munition (RDM). The company is an industry leader in the research, design, development, and manufacturing of ammunition, artillery, mortar and infantry systems. RDM’s roots are deep in South Africa. The company’s history goes back a long way to the days of Denel – a state-owned business that supplied

the South African National Defence Force (SANDF) with military hardware, support, and other services. Parts of the Denel business date back more than a century and come from a focus on explosives for the mining industry. Through history, a number of brands developed to service this and other sectors, and in the 1970s and 1990s different consolidation programmes saw businesses merged to create Armscor Procurement Agency of the Department of Defence and Denel. Responsible for the manufacturing capability of the defence industry in South Africa, Denel’s ability was unrivalled in Africa and the group began to build its presence at global scale. But the company ran into financial and operational challenges through the early 2000s, and in 2008 German technology and systems Continues on page 84

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INDUSTRY FOCUS: MANUFACTURING

Continued from page 82 suppler Rheinmetall purchased a stake from Denel to revitalise the munitions business and bolster its ambitions for global dominance. Following the deal, which saw RDM split 51/49 between Rheinmetall and Denel as a state-owned enterprise, investment was penned by both parties and technology expertise shared to bring global best practice to five facilities across South Africa. Today, the company is a centre of excellence for manufacturing and has produced a number of world-firsts in the competitive and crowded international market. INNOVATORS In 2019, RDM was in the record books when it successfully tested various munitions across the longest range ever attained. A G6 howitzer 52-calibre gun with a conventional 155 mm

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artillery round travelled 76 km, a PzH 2000 52-calibre gun launched a self-propelled shell 67 km, and a field howitzer with a 39-calibre gun achieve 54 km. This success led to a number of fresh contracts as the company looks to establish long-term relationships. In December 2022, RDM agreed a multimillion contract with a NATO member to supply 155mm artillery ammunition from its Assegai range. Able to be fired from any NATO STANAG-compatible artillery system, the Assegai range is popular because of its power and flexibility. Under a five-year framework, RDM will supply 155mm M2005 V-LAP (Velocity Enhanced Long Range Artillery Projectile) projectiles, M92 modular charges and various fuses. “We are proud to support our longtime NATO partner with Rheinmetall’s world-leading long-range artillery suite. Framework agreements provide longterm ammunition supply assurance and a flexible system for procuring

ammunition over the course of a year. The rocket assist V-LAP together with the tactical assegai charges M92 with barrel wearer reducer and muzzle flash reducer will support both the soldiers in the battlefield and the logistics and maintenance troops,” said former CEO Jan-Patrick Helmsen. In January 2023, the company announced a new partnership with the Hungarian state to supply plant technology for a new explosives plant in Várpalota in the west of the country. Another multimillion Euro contract will see Rheinmetall and a state-owned entity of Hungary operate the plant with production beginning in 2027. When the plant is complete and fully operational, the expectation is that Rheinmetall AG will become a primary customer. Products will include artillery, tank, mortar ammunition and more. These contract awards come off the back of agreements with the Spanish military in 2022 and the Dutch

RHEINMETALL DENEL MUNITION

armed forces in 2021 which buoyed production in SA facilities and fuelled the local supply chain including materials, logistics, and labour. But sustainability is essential and the company is looking at innovation to keep it at the cutting edge from a product and process perspective. Where competition has made some advances in V-LAP technology, RDM is readying a new system which will see increased range. Ramjet-powered 155mm artillery will give a range of 155 km using an air compression engine system to act more efficiently than rockets, at a reduced price. With refinement still required, the ramjet system is an exciting development for the long-range class, and RDM is leading the way with research and testing. SUSTAINABILITY In processes, the energy usage to manufacture high-power goods in South Africa is a concern. Loadshedding is part of life and there is no escaping the Eskom difficulties, unable to deliver consistent electricity supply to all parts of the economy. So, RDM is taking action by implementing a solar energy project at its site in Somerset West in the Western Cape. In June 2023, the company broke ground on the development which will produce 4200 KW of AC current from around 10,000 solar modules. This power will fuel the entire plant and feed surplus energy back to the national grid. Rheinmetall has released a target to reach carbon neutrality by 2035 and this project backs up a project to produce and export green hydrogen. “The solar park will lay the groundwork for forward-looking new fields of business for the Somerset West plant, further expanding the company’s position in global markets while simultaneously benefitting people everywhere by helping to protect the climate and contributing to a sustainable future,” said Helmsen. At the same time as protecting the environment and taking steps to

be more effective in mitigating against climate change, RDM is also thinking of sustainability internally. The company, like all others in SA manufacturing, requires a skilled workforce now and in the future. To ensure a strong set of local skills, helping people to develop themselves, RDM has invested in a Career Community Centre in Macassar, close to Somerset West. Technology and connectivity, as well as advice and training for job seekers, will help those in the area to be effective in a challenging job market. “Rheinmetall is happy to be supporting our neighbours in Macassar with a fully-fledged Career Centre. Its mission is to equip job seekers with the skills they need to compete in the labour market,” said Helmsen. Capping off a good year, the company displayed capabilities at the

Lohatlha Combat Training Centre in the Northern Cape in December when it fired off 30-year-old refurbished mortar rounds. As part of a project - Exercise Vuk’uhlome 2023 - with the SANDF, RDM showed its ability to take munitions that have moved beyond A-grade and ensure they still have life by re-engineering to save money while providing expected performance. New CEO Dr Frank Dirksen said RDM would continue to work with the SANDF as a reliable and trusted partner as the company and country grows in importance during tough, confusing, and unpredictable economic conditions.

WWW.RHEINMETALL.COM

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EXHIBITION CALENDAR

KEY UPCOMING EVENTS ACROSS THE REGION IMPORTANT EVENTS AND EXHIBITIONS TAKING PLACE ACROSS SUB-SAHARAN AFRICA, GIVING BRANDS A PLATFORM TO TELL THEIR STORY.

JAN

MARITIME WEEK AFRICA JAN 23 - 25 | CAPE TOWN Maritime Week Africa is the longest-running and most popular bunkering event on the African continent. It has earned a reputation for attracting the most eminent industry speakers, bringing together key bunker buyers and suppliers, as well as ports, refiners, regulators and other leading maritime professionals to highlight the unique issues and opportunities relating to the African bunkering industry. The packed conference programme will focus on traditional fuels as well as new and emerging fuels and technologies, an area that everyone in the shipping and bunkering sectors – in Africa and beyond – is now having to embrace as international regulations and consumer demand drive shipowners and charterers to reduce emissions and run on ‘greener’ more sustainable fuels. It will also examine how better collaboration among industry stakeholders and regulators – in South Africa, the African Continent and beyond – might benefit the industry at large.

JAN

TOWNSHIP & VILLAGE TOURISM EXPO JAN 24 - 25 | MAROPENG VISITOR CENTRE, GAUTENG The Township and Village Tourism Expo 2024 is a significant annual event organised by the South African Township and Village Tourism Organisation, aimed at promoting and showcasing the diverse cultural heritage and tourism offerings of townships and villages which will be hosted at the famous world heritage site, Maropeng-Cradle Of Humankind in Gauteng, South Africa. The expo is scheduled to take place over two days, from 24th to 25th January 2024, and will be a platform to celebrate the rich history, traditions, and unique experiences found in these communities.

DIGITAL RETAIL AFRICA JAN 31 | JOHANNESBURG The internet and customer expectations are forcing retailers to reassess the service they provide, not just in terms of convenience and pace, but engagement and overall experience. DRA 2024 will focus on how emerging technology trends will disrupt the sector. Understand what’s coming next in retail and connect with an audience of decision-makers. Attend and make new connections that will take your retail business to the next level.

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DEC

ARCHIBAT 2023

12 PARC DES EXPOSITIONS D’ABIDJAN DEC 12 - 16

DEC

FOOD AFRICA CAIRO

JAN

MARITIME WEEK AFRICA

JAN

TOWNSHIP & VILLAGE

12 CAIRO, EGYPT | DEC 12 – 14 23 CAPE TOWN | JAN 23 - 25 24 TOURISM EXPO

GAUTENG | JAN 24 -25

JAN

DIGITAL RETAIL AFRICA

FEB

SOLAR POWER AFRICA CAPE TOWN | FEB 7 - 9

FEB

AFRICAN AIR EXPO:

31 JOHANNESBURG | JAN 31

12 EXHIBITION & CONFERENCE CAPE TOWN | FEB 12 - 14

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