AFRICA
THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS
November 2023
www.enterprise-africa.net
Record Breaking Masslift Lifts Performance Yet Again Exclusive interview with Masslift Africa CFO Thembi Mazibuko and CEO Marco Caverni
ALSO IN THIS ISSUE:
Idwala Industrial Holdings / Jumbo Clothing / Sime Darby Oils / Nestle ESAR
BUSINESS BANKING
Our business bank accounts are tailored to meet the unique needs of businesses of all sizes, whether you’re a small startup or an established enterprise. SMALL ENTERPRISE ACCOUNT
BUSINESS ACCOUNT
COMMERCIAL ACCOUNT
Affordable monthly fee 24/7 access to a banker for assistance Access to credit and value-added services
086 000 0471 info@finbondmutualbank.co.za www.finbondmutualbank.co.za Finbond Mutual Bank is an authorized financial services provider (FSP No 44907) and registered credit provider (NCR CP 6172). Finbond Mutual Bank is registered with & regulated by the South African Reserve Bank (Reg No 01102). Product rules, terms & conditions apply.
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 Ekwa Bikaka ekwa@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
How many brands do you know that truly deliver on customer service promises? How many truly understand their customers and give a service beyond the basic, beyond expectations? Are there any medium and large customer facing businesses that can still tailor service to individual customers? It’s a challenge but those that get it right reap the rewards. Masslift Africa, leading importer and distributor of forklift trucks from Mitsubishi, has invested heavily in customer service, upskilling people, embracing a wide portfolio, and backing up with parts and service that others can’t deliver to ensure that buyers are delighted at every tough point. Jumbo is doing similar. The fashion retailer is spending on its stores, hiring new people, and growing its footprint to deliver quality for more people. But in each store, CEO Alan Scheckter insists on local talent, who understand the community, to bring service unrivalled in its areas. This focus on service sees the company grow at around 15 stores per year on average, booming in a tough retail environment. SIME Darby Oils, the supplier of edible fats and oils to the food industry, is releasing new products to improve the quality of customers recipe. By researching what works and what doesn’t, what is good and what is bad, and where customers need more, the company is coming up with new ideas to make chips crispier. It sounds obvious, but this level of service will help the company to leapfrog others and claim market share. Idwala Industrial Holdings is set to become a solutions provider for its clients, rather than simply a supplier of products, listening to exactly what is required from those that buy its industrial minerals across a range of different industries. The company is investing in new technology to improve products and better cater to the changing needs of the market.
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
Without laser focussed customer service, these businesses would not be able to grow at the rate they have, and others might have taken the chance. Without sounding condescending, customer service remains the number one priority when it comes to attracting and retaining customers and it shouldn’t be ignored. Get in touch and tell us how your company is delivering its customers service and how people are reacting. We’re online at LinkedIn.
Joe Forshaw EDITOR GET IN TOUCH +44 (0) 1603 855 161 joe@enterprise-africa.net www.enterprise-africa.net
www.enterprise-africa.net / 3
CONTENTS MASSLIFT AFRICA Breaking Masslift Lifts Performance Yet Again 6 Record IDWALA INDUSTRIAL HOLDINGS Tech Catalyses Efficiency at Idwala 14 New WOOLWORTHS Drives Good Business Journey 20 Woolworths JUMBO CLOTHING Jumbo Shapes for Further Expansion 28 Stylish
28
4 / www.enterprise-africa.net
34 SIME DARBY OILS SOUTH AFRICA 34 Best Yet to Come for Frying High-Flyer NESTLÉ ESAR 38 Contributing to a Healthier Future ADCOCK INGRAM 44 Health Specialist in Peak Condition MARSH AFRICA 48 Understanding Modern Business Risk Alongside the World’s Best www.enterprise-africa.net / 5
MASSLIFT AFRICA
Record Breaking Masslift Lifts Performance Yet Again PRODUCTION: James Davey
Introducing innovative new forklifts, bringing on new apprentices across SA, investing heavily in healthcare and education projects, driving fantastic results, and developing a new shareholding structure is all a year’s work for Masslift Africa’s CFO Thembi Mazibuko and CEO Marco Caverni. The pair speak to Enterprise Africa about another amazing year of milestones at the materials handling industry leader. 6 / www.enterprise-africa.net
INDUSTRY FOCUS: INDUSTRIAL
//
In 2021, Masslift Africa – leading African distributor of Mitsubishi forklifts for the materials handling industry – was busy celebrating a year of record results
8 / www.enterprise-africa.net
against a tricky economic backdrop. In 2022, the company was equally buoyant, increasing staff count and celebrating strong results once again. This year, CFO Thembi Mazibuko
tells Enterprise Africa that Masslift has, yet again, beat all expectations and pulled off another record year. “Each year, we think there is no way we can beat our records, but each year we achieve amazing success.” Selling a range of forklift trucks for use in materials handling across commercial and industrial sectors, the company is the local partner of Mitsubishi Forklift Trucks – recognised as the global leader in forklift technology. In Southern Africa, the Mitsubishi Ninja is the preferred model and, although Masslift has a wide portfolio on offer, the quality and reliability on offer from the Ninja has helped to lift the company to its highest point since its establishment. “We will be selling our 2000th Ninja by the end of the year. It’s one
MASSLIFT AFRICA
www.enterprise-africa.net / 9
INDUSTRY FOCUS: INDUSTRIAL
of the forklifts that is perfect for the African terrain and we’ve had a great run with that product,” says Mazibuko. “It’s a great milestone after launching the model in 2013. It took us six years to sell 1000 but only four years to sell the second thousand.” CEO Marco Caverni adds: “We are on the right track, and we remain excited about the Ninja which is such a fantastic machine. “Coupled with this, Mitsubishi have an upgraded Grendia internal combustion model landing on South African shores early next year. The Grendia is the flagship range which was initially launched in 2003. It has cool new features, especially around health and safety, and it has a new multifunctional colour display. It’s an exciting development and looks brilliant.”
STRONG PERFORMANCE Like both the Ninja and Grendia ranges, Masslift’s performance for the year has been strong. Nothing has been able to stand in the way of the growth of the business. Even a bleak economic picture has done little to scupper the acceleration of Masslift. For Mazibuko and Caverni, this success is surprising but not unexpected. In 2022, the company was busy expanding its staff count by 25% while others were retrenching. By instilling a culture of excellence and delivering for clients, the Masslift brand is booming. “The growth is there, and it is happening organically through us following good business practices and strategy,” said Caverni. Today, this mentality endures, and the growth continues to follow.
PEDESTRIAN DETECTION CAMERA • Detects pedestrians • Records critical data • Works with FMS Management systems to assess high-risk areas
• Connection to FMS Speed restrictor • Lowers risk and assists with Target Zero • No need for tags or high visibility vests • Audible and visual alert • IP 68 Rated solution
TEL: 031 709 0716 | www.fmstech.co.za
10 / www.enterprise-africa.net
“Things at Masslift are busy,” admits Mazibuko. The team recently went about implementing a new Enterprise Resource Planning (ERP) system to drive efficiency across the business’ processes. “We recently completed the ERP system upgrade and people have been trying to familiarise themselves with that. With that new system, we have automated a lot of our parts processes – how we issue parts to technicians and customers. There have been a lot of efficiencies, that is good for customers, and it helps us to remain the best customer service provider in the world. In six months, when everything has settled, we are expecting to achieve significant efficiency improvements because of this upgrade,” says Mazibuko. At the same time, the company has been onboarding a fresh cohort of apprentices as the Masslift educational programme goes from strength to strength. Now in its second year, the apprenticeship programme takes young technicians through a threeyear experience, giving everything required to work on Mitsubishi forklifts. “This year was the biggest intake with apprentices in Johannesburg, Durban and Cape Town,” details Mazibuko. “Our intention is to absorb them as diesel technicians when they qualify because of the skills scarcity in South Africa where most of our technicians emigrate to Australia or New Zealand. We want to cultivate the
// SOME ARE HESITANT ABOUT ELECTRIC BECAUSE OF THE LOAD SHEDDING, BUT WE HAVE BEEN CLEAR ON THE ADVANTAGES AND DISADVANTAGE AND WHAT MUST BE CONSIDERED //
MASSLIFT AFRICA
technical skills from within to get ahead of the skills gap that widens every year. “It’s a forward-thinking approach,” she adds. “When everyone is looking for skilled technicians and they are nowhere to be found, Masslift will still be able to deliver its service excellence for customers.” RESPONSIBLE CORPORATE Refreshingly, key messaging from Masslift is about community development and positivity that impacts more than the company’s own bottom line. The senior leadership team within the business is keen for Masslift to work alongside its communities and not become a company where roles are ‘just another job’. “We have had a lot of initiatives, internally and with customers,” confirms Mazibuko. “We had our annual golf
day in September and that allowed us to again partner with the Nelson Mandela Children’s Hospital and donate money that supports services. Last year we were celebrating our 30th anniversary and we donated around R120,000 to the hospital with our suppliers and partners matching this donation so we ended up handing over around R220,000. This year, we raised around R70,000 and suppliers and customers also contributed bringing the total to R110,000.” Thanks to this fantastic ongoing support, Masslift received the Globetrotter Award from the hospital, given to those who above and beyond to deliver for the children of South Africa. “That is something that we are really proud of,” says Mazibuko. “We also contributed to the Smile Foundation
as part of Nelson Mandela Day where surgeries for children with smile deformities are sponsored. Again, that is something that we are really proud of and makes a real difference. We also had a community workplace outreach programme where we went to a high school in Soweto and spoke to 170 matric learners to discuss what options are available if they don’t qualify to go to university.” Masslift has concentrated its CSR efforts around education and healthcare, and it continues to display an appetite for the greater good, supporting initiatives that go far beyond the business’ own health. ALIGNING EXPECTATIONS Stacking a structure for ongoing growth, Masslift is busy changing up its shareholding. Mazibuko will
www.enterprise-africa.net / 11
INDUSTRY FOCUS: INDUSTRIAL
take equity with the Chairman of the board coming on as a major shareholder alongside Marco Caverni. “This will align shareholder expectations with business expectations to make sure everyone is on the same page. There will be no change for normal business operations, but we will be able to introduce new initiatives to make sure we are an employer of choice in the material handling industry,” explains Mazibuko. “I want the business to continue this positive journey,” adds Caverni. “We have had a massive growth phase, and we now need to maintain. The level of performance must remain. The growth in people is what we’re looking for next year. We want to stabilise and upskill people wherever possible. That is definitely a major focus – we don’t make the forklifts, we are all about
12 / www.enterprise-africa.net
people that support the forklifts.” The forklift portfolio on offer, including all of the ancillary products and benefits, can be examined in detail at the new Masslift website. The company redesigned its site, streamlining and making navigation easier to help build connections. “We are looking to increase the number of leads we generate from the website. Customers can interface with us much more easily and we have received great response so far,” Mazibuko declares. SUBJECT MATTER EXPERTS Masslift is preparing itself for the future of mobility by focusing on electric powered forklift trucks. The company already has clients desperate for cleaner, emission free machines and Mitsubishi is a world-leader in electric motors. While not neglecting its core
customers, in a market where uptake of electric mobility is slower than other parts of the world, the company is still keen to display the benefits. “When customers are ready to make that change, we are the subject matter experts and we have the machines ready to go,” says Mazibuko. The Mitsubishi EDiA machine is a great example. Able to move 4-5.5 tons between three and seven meters, with four-wheel steering, and differential lock for optimum traction, the EdiA XL is fully electric. “People are constantly in the battle between internal combustion engines and electrics, especially with the load shedding we suffer. Some are hesitant about electrics because of the load shedding, but we have been clear on the advantages and disadvantage and what must be considered. Being
MASSLIFT AFRICA
innovative and responsible in all aspects of business is still a big goal for Masslift. Many people use loadshedding as an excuse for not adopting electric or green strategies, but there are ways that it can work very effectively. “In South Africa, there has not been a massive revolution around going electric just yet when compared with
// WE HAVE HAD A LARGE GROWTH PHASE AND WE NOW NEED TO MAINTAIN. THE LEVEL OF PERFORMANCE MUST REMAIN //
Europe. We do sell internal combustion engines and electric machines and we are definitely trying to highlight the benefit of the electric machines especially in industries where they are mandating the use of electric,” she adds. As the electric category becomes more popular in South and Southern Africa, Masslift will only grow further, leveraging its strong position in the market where it is trusted by so many. For now, Mazibuko and Caverni are happy to look back on what has been a bright three years while planning for the next growth frontier. “We are finalising our financials for the year ended 31 March 2023 and our performance was better than the previous financial year which was a record,” says Mazibuko. “The deal we had with Makro and Massmart, part of the Walmart Group,
has been a big contributor to that and it has driven a step change in the business and in our performance,” says Caverni. By building a culture that breeds positivity, and embedding the business as a deep part of the community and industries where it is active, Masslift is now an industry leader with an option for every type of client and an open, transparent, inclusive, and high-performance philosophy. This, concludes Caverni, is the place to be to develop and grow.
MITSUBISHIFORKLIFTS.CO.ZA
www.enterprise-africa.net / 13
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.
14 / www.enterprise-africa.net
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
16 / www.enterprise-africa.net
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 18
KEEP YOUR MINING OPERATION MOVING SAFELY
Unitrans offers trusted mining solutions to keep your operation safe and productive. We’re experienced in providing inbound & outbound logistics, load & haul solutions, clearing & stripping services, stockpile management and more. All supported by quality safety standards, innovative technology solutions and a wellestablished footprint throughout Sub-Saharan Africa. Find out more at www.unitransafrica.com
www
INDUSTRY FOCUS: MINERALS
Continued from page 16 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 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 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 knockon 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
18 / www.enterprise-africa.net
IDWALA INDUSTRIAL HOLDINGS
// OUR FOCUS HAS SHIFTED FROM BEING A COMMODITY SUPPLIER OF CALCIUM CARBONATE TO BEING A COMPANY THAT PROVIDES SOLUTIONS FOR OUR CUSTOMERS. WE ARE SOLUTIONDRIVEN AND WE ADD TO THE VALUE CHAIN // 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 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
www.enterprise-africa.net / 19
WOOLWORTHS
Woolworths Drives Good Business Journey PRODUCTION: James Davey
One of south Africa’s most historic and favourite retailers, Woolworths is deepening its connection with consumers by placing sustainability at the heart of everything it does. Julie Maggs, GM Beauty, tells Enterprise Africa more about the challenges and opportunities with a sustainability strategy driving the business forward. 20 / www.enterprise-africa.net
INDUSTRY FOCUS: RETAIL
//
South Africa’s Woolworths is perhaps the most recognised, and one of the most loved, brands in the country. In fact, in August 2023, the Kantar BrandZ Most Valuable South African Brands report listed Woolworths as the eighth most valuable brand in the country, highlighting the company’s focus on sustainability as a key driver of success. “Sustainability has become a fundamental requirement for doing business and it is also an enormous opportunity for brands,” the report said. In October 2022, the company was the first SA retailer to remove single use plastic bags from all of its food markets. Part of a zero-packaging waste to landfill
22 / www.enterprise-africa.net
strategy, which includes adopting recycled and recyclable packaging, Woolworths has since removed single use plastic straws, utensils, cotton bud stems and more from its product range. “We are deeply committed to our zero-packaging waste to landfill vision and delighted to have reached this target,” said Chief Technology and Sustainability Officer, Latiefa Behardien. In August 2023, used coffee bean sacks that are converted into mannequins for use in the fashion space were adopted by Woolworths, taking another step towards reducing plastic waste to landfill to zero. “We are delighted to be the first large retailer in South Africa to
make such a significant investment in them and going forward we will continue to add more into our stores,” said Tracey Lotter, Woolworths Head of Visual Merchandising. In May 2023, another fresh initiative was hitting the roads as, in partnership with DSV and Everlectric, Woolworths became the first SA retailer to rollout electric panel vans for delivery services, reducing carbon footprint and cementing its position as a sustainability leader. “Last year we announced our commitment to electric delivery vehicles, and we are delighted to now have nearly half our fleet powered by the sun. The new electric vehicles
WOOLWORTHS
info@seamtech.co.za Durban South Africa +27 31 304 3940
Pioneer in Seamless underwear for the past 20 years Supplier to all major clothing retail chains in South Africa Proudly flying the flag for Local manufacturing “ Proudly South African ”
have been introduced on selected routes in Cape Town and Gauteng with further rollouts and extensions into KwaZulu Natal planned to follow as soon as possible,” said Head of Online and Mobile, Liz Hillock. But in the often hard-to-green beauty sector, where Woolworths remains an industry leader, success has been limited. In September 2022, the company was celebrating the launch of innovative new lipstick products, packaged using paper and bamboo. Recyclable and certified by the Forest Steward Council® (FSC®), these new products form part of the
Wbeauty range and come in a range of colours to suit different consumers. However, the beauty sector remains challenged from a sustainability perspective. Plastic packaging is an obvious blight. Water usage during manufacture is significant. Chemicals and animal testing linger as welfare issues. And locally crafted products are often more expensive than imported, mass-produced goods. GBJ Thankfully, Woolworths has taken a commitment to a ‘Good Business Journey’ through which it aims to be
more sustainable, more transparent, and more inspirational to others. In the beauty industry, where sustainability leadership is required to encourage good practice, the company has onboarded industry veteran Julie Maggs to lead the way forward. She is ambitious and committed to the group’s strategy. “I have worked in the beauty retail industry for close to 30 years,” she details, adding that her career spans multiple departments at EDCON before joining Woolworths in 2022. “Woolies is synonymous with sustainability and giving back - the
www.enterprise-africa.net / 23
INDUSTRY FOCUS: RETAIL
// WE’RE HEADING INTO AN EXCITING TIME WITH AMBITIOUS GOALS ULTIMATELY DESIGNED TO DOUBLE WOOLIES BEAUTY OVER THE NEXT FIVE YEARS // Beauty department is no different. “We’re heading into an exciting time with ambitious goals ultimately designed to double Woolies Beauty over the next five years,” she continues. “We are committed to supporting local industry, not just through buying product, but ensuring that we
24 / www.enterprise-africa.net
educate and grow small businesses with our expertise and investment.” When the company began phasing out plastic bags in the food division, it partnered with a local company to develop a durable, reusable bag. This helped that business to treble its staff count and become a sustainable business in its own right. For Wbeauty, the Woolworths house brand, local businesses have been engaged on everything from packaging to formulation and marketing. All products are vegan, cruelty-free, and paraben free. The range includes skincare, foundation, eye products, lipsticks, and associated makeup essentials. “Wbeauty proudly manufactures close to 90% of their products locally,” smiles Maggs. “We
have a number of partners, including SDK Agencies who are 100% black owned and woman-led and specialise in colour, fragrance, and skincare. Across our various suppliers we’ve created 500 jobs – a benefit to the local economy.” Having launched a number of brands and new concepts in the past (MAC, Bobbi Brown, Kiehls), Maggs has a clear understanding of what customers want and how they want to engage. And the environment is mixed. All want sustainability, all want quality and affordability, but different products must be consumed in various ways. Woolworths recently launched AMAZI in key stores around the country; an offering where consumers can attend beauty bars and enjoy nail services. AMAZI is proven to have had a real impact through upliftment,
WOOLWORTHS
education, and empowerment. “We’re exceptionally proud to partner with them,” says Maggs. “From a sustainability perspective, we take immense pride in how we formulate our home brands,” she adds, saying that new brands are imminent but must adhere to the company’s strict standards. “We only use responsibly, ethically, and sustainably sourced vegan ingredients, our packaging is recyclable or reusable, and we don’t test on animals. We have big ambitions in our Beauty business. We’re looking to introduce new brands (both local and international) and incorporate beauty departments into more stores and double the value of the Woolworths Beauty business over the next five years. This focus and determination is already evident in our Canal Walk store which is home to our newest WBeauty flagship.”
REFLECTED IN RESULTS Woolworths Good Business Journey involves a number of key deliverables as part of the company’s Vision 2025. Having a fully transparent, traceable, and ethical supply chain by 2025; all private label products will be reusable, repairable, resealable, or recyclable by 2025; all key commodities will be from traceable sources by 2025; and all private label clothing, beauty, and home products will contain at least one renewed, reused, or recycled production material input by 2030. Add this to net zero carbon impact by 2040 and 100% of energy to come from renewable sources by 2030 and the focus on positive change looks strong for Woolworths. At the same time, the business itself must be sustainable and profitable to ensure the good work is viable in the
long-term. In August, the company released financial results for the year ending 25 June 2023. Turnover was up 7% to R85.7 billion, profit before tax was up 29.5% to R6.7 billion, and Group CEO Roy Bagattini, was thrilled. “It has been a transformational year for our Group,” he said. “I am very pleased with the progress our teams have made in executing against our strategies, delivering a strong set of results and the highest earnings per share in the history of our Group.” In the post-Covid environment, where shopping trends and retail life have changed dramatically, Maggs reports that beauty has remained strong throughout. “It’s a category known to be generally resilient, and we’re enjoying a resurgence both in stores and online,” she says. “We’re particularly
Embracing Local Craftsmanship: Aranda Textile Mills and Woolworths In a world where sustainability and supporting local industries have become paramount, Woolworths has been a pioneer. For over two decades, Woolworths has partnered with Aranda Textile Mills, a South African manufacturer renowned for its exquisitely crafted blankets and throws. Aranda’s journey with Woolworths reflects a shared commitment to preserving the legacy of Aranda’s textile weaving expertise while promoting sustainable and ethical manufacturing practices.
The unmatched name brand in woven blanket products since 1953 www.aranda.co.za | info@aranda.co.za | (+27) 11-693-3721
Aranda Textile Mills salutes Woolworths for its unwavering dedication to South African craftsmanship, recognizing the vital role it plays in supporting local industry and livelihoods. Together, we celebrate the fusion of tradition and sustainability, weaving a brighter future for South Africa.
www.enterprise-africa.net / 25
INDUSTRY FOCUS: RETAIL
// THESE INSIGHTS HARNESS OUR ABILITY TO STAY ON THE PULSE AND, WHEN PARTNERED WITH CUSTOMER DATA, DETERMINE WHICH TRENDS ARE MOST LIKELY TO RESONATE WITH OUR SHOPPERS AND PERFORM WELL // pleased about maintaining growth in our Online division in a post-Covid world because the initial sentiment suggested people were shopping online instead of visiting stores. We’re learning that our customers do both.” Away from Woolworths stores,
26 / www.enterprise-africa.net
as many employers have slowly called for a return to the traditional workplace, the beauty industry is also realising positivity and, thanks to its convenience, Woolworths has been best positioned to meet demand. “The return to office trend has increased opportunities for our makeup and fragrance business; categories that were sluggish during lockdown, while we’ve maintained the demand for skincare which was a lockdown win for us,” says Maggs. But post-Covid, while successful in some areas, has been a real challenge in others as the economic impact and changes in consumer behaviour have been difficult to keep up with. Whether its macro challenges around energy supply or individual spending power, Woolworths has had to remain nimble. “Our key challenges include supply chain issues relating to availability of packaging, cosmetic
ingredients, loadshedding and the cost of living,” admits Maggs. “These challenges have led us to collaborate with suppliers further in advance and be agile in our approach (to packaging, for example) when needed. “Loadshedding has been a significant burden this year,” she adds, noting more than 4000 hours of blackouts in 2023 by mid-July. “The cost of diesel to run generators (all Woolies stores stay open during loadshedding) has had a marked effect on our bottom line. This extends to our local suppliers too – many of them have been forced to spend capital on solar or generators which influences their cashflows. “Our customers are under enormous financial pressure, and this has driven us to continue creating and delivering high-quality products at a price many would consider affordable,” she says, against the backdrop of
WOOLWORTHS
Kapula is a trusted manufacturer and exporter of premium quality handmade frost and hand-painted candles. We are proud suppliers to Woolworths for over 20 years. Situated in the heart of South Africa’s Overberg region, we meticulously source our raw materials to ensure the highest quality and remain fiercely committed to our handmade processes, allowing us to provide sustainable employment to many. Our extensive range includes pillar candles, votives, dinner candles and more as well as opportunities to customise orders to your specific needs. Colourful, bold and always unique, get in touch with us to discover The Warm Art of Africa. ORDERING & ENQUIRIES: For orders or to discuss custom candle designs and branding options, email us at enquiries@kapula.com or visit www.kapula.com
a weak Rand, high interest rates, escalating debt, and inflationary stress. OFFERING OPPORTUNITY To deliver the necessary excellence expected by the public, especially when times are tough and repeat business from loyal customers is essential. This is how Woolworths satisfies shareholders and continues to grow in a highly competitive retail industry. This excellence comes from people. Part of the company’s Good Business Journey is to promote inclusive growth for all, and Maggs says this a real strength within Woolworths. “An achievement I’m particularly proud of is having worked from the bottom up and being fortunate enough to offer others the same opportunity,” she explains. “At Woolies we value people; our training and
graduate programmes make it possible for employees to learn on the job, regardless of their backgrounds.” Building these skills allows for better planning, stronger development, and deeper understanding of markets, and this keeps Woolworths at the cutting edge allowing it to compete on metrics beyond just price. “In terms of trends and forecasting, there are dedicated teams designed to track and forecast new opportunities, and we rely on them to inform our innovation in the space. These insights harness our ability to stay on the pulse and, when partnered with customer data, determine which trends are most likely to resonate with our shoppers and perform well,” explains Maggs. Through all of the innovation and positive influence that Woolworths contributes, it is now recognised as
a globally as a responsible retailer. This was solidified in September when the company celebrated its 15-year partnership with WWF South Africa through which the pair have spearheaded advancements in sustainable farming and seafood sourcing, water stewardship, alien plant clearing, on-pack recycling labelling, and various other initiatives. With beauty, fashion, and food all taking big strides forward in sustainable performance this year, Woolworths continues to lead the way, setting an example for other retailers, while consistently reinforcing its brand position in the minds of all South African consumers.
WWW.WOOLWORTHS.CO.ZA
www.enterprise-africa.net / 27
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. 28 / 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
30 / www.enterprise-africa.net
community is important. We provide a huge amount of value through job creation in areas that are generally less fortunate than those in the 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
JUMBO CLOTHING
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 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
Ntabankulu Store Opening
www.enterprise-africa.net / 31
INDUSTRY FOCUS: FASHION
// THE CHALLENGE WE HAVE IS THAT OUR TRADING ENVIRONMENT IS IN SPRAWLING RURAL TOWNS, BUT STILL VERY RURAL // 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 products that its core demographic is purchasing on visits
32 / www.enterprise-africa.net
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 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 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.” 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
JUMBO CLOTHING
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 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.
CLOTHING OF
IMPECCABLE
QUALITY & STYLE Proud Partner
THE LEADERS IN THE CLOTHING MANUFACTURING INDUSTRY WE ARE PROUDLY SOUTH AFRICAN
Wear our products with pride and a sense of exclusivity
SHOP ONLINE
“It is more rural, and it is different to the established centres in the country,” admits Westaway. “Infrastructure, 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
navadaonline.co.za
that you don’t find elsewhere. Everyone is treated equally and developing our people is something that gives me great 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
www.enterprise-africa.net / 33
SIME DARBY OILS SOUTH AFRICA
Best Yet to Come
for Frying High-Flyer PRODUCTION: Jamie Waters
Sime Darby Oils South Africa (SDOSA) is a supplier of bulk vegetable oils in a myriad of different formulations, apt for a wealth of applications, and a manufacturer of packed products primarily in the bakery and frying segment. Chips are big business in South Africa, and with its homegrown, adaptable, and quality-enhancing BettaFry oil SDOSA is raising the bar even higher.
//
A wholly-owned subsidiary of Sime Darby Plantation (SDP) and currently its sole African-based downstream operation, Sime Darby Oils South Africa (SDOSA) consists of an industry-leading Gauteng refinery, located in Boksburg, bolstered by a packing facility in
34 / www.enterprise-africa.net
Springs. From these bases the specialist in fats and oils manufacturing is able to produce the full gamut of products ranging from industrial ingredients, margarines and pastry fats to shortenings and frying oils. It is for these latter wares that this South African institution is arguably
best known, explains GM Matt Ellis: “We reach the full range of manufacturers of bakery products, be they small, medium or large entities,” he opens. “We have full coverage of that sector; when it comes to frying, we are one of the leaders in the quick service restaurant (QSR) segment. The likes of Chicken Licken,
INDUSTRY FOCUS: FOOD & DRINK
SDOSA commits to ever-improving processing technology, Ellis elaborates, with on-going recommendations for milling and refinery improvements joined by optimisation of downstream processes to improve refinery’s efficiency and product quality. “Quality is not just about now. It is also about the future. We are fully committed to a future of delivering new innovations and controls, whether analytical, technical, or operational, that will engender even greater success for our customers’ brands.”
Matt Ellis, General Manager
Steers and Spur Steak Ranches, through to the smaller, more Mom-and-Pop type establishments all fall within our remit and are all businesses with which we have longstanding relationships.” INNOVATIVE SOLUTIONS At the core of SDOSA’s ethos is the recognition that new ideas and solutions are critical to keeping its customers competitive. “Our refinery is a state-of-the-art, multicomponent
// IN BETTAFRY WE HAVE DEVELOPED A FRYING OIL WITH EXTRAORDINARILY STRONG STABILITY IN A CRUCIAL APPLICATION // 36 / www.enterprise-africa.net
and multiprocessing facility,” Ellis beams of the setup, “that processes both seed oils such as canola, sunflower and tropical oils, including palm oil and palm oil derivatives, palm kernel oil and derivatives and coconut oil. “Having our plantations, mills and refineries in such close proximity to each other affords us immediate processing with special handling.” Ellis reveals that Sime Darby Oils Innovation Centres exist across the globe, involved in consultation and planning from start to finish to provide technical support and product solutions to meet every need. “We help our customers in new product development right through to packaging,” he expands. “With our wide range of processes, products can be tailor made to suit our customers’ specifications and satisfaction and all are rigorously checked in order to conform to the high standards for which we have become known and respected.”
STRIVE FOR BETTA This spirit of continuous progress and aspiring to greater heights in quality and innovation is perfectly captured in SDOSA’s launch this year of its groundbreaking BettaFry pure vegetable oil, a further step in the constant evolution of its peerless oils, Ellis explains. “SDOSA as well as our predecessor, Hudson and Knight, would likely be extremely well-known in the industry for our Crispa Gold and Crispa Palm lines,” he details, before giving the lowdown on SDOSA’s primary launch this year, a soybean-based all-purpose pure vegetable oil, designed to tackle any and all culinary applications. “BettaFry has been developed for a number of reasons,” Ellis explains. “The soybean crop in South Africa has been strengthening year-on-year over the past decade, which has entailed an increased availability of the raw material at the heart of this fully South Africangrown and manufactured product. “Additionally, this is a blended oil,” he says, “and while soy is definitely the primary ingredient, we have succeeded in developing a formulation whereby we have incorporated some palm oil as well, resulting in a frying oil with extraordinarily strong stability in this crucial application. “What results are some significant benefits: one comes in the sheer quality of the fried product; as anybody in South Africa would attest, we are a nation of chip lovers, and we are
SIME DARBY OILS SOUTH AFRICA
“Specialised Transportation of Bulk Edible Oils” mahen@terrabellafreight.co.za
very particular about the quality of those chips,” Ellis smiles. “Talk to anyone in the food service business here in South Africa and they will tell you the same thing: there are two primordial markets. One is the centre of the plate, which is dominated by steak, and the other is the side of the plate, where chips reign supreme. It follows, therefore, that to gain those consistent, repeat customers, the quality of that product has to be supreme. “Using something like BettaFry will not only give longer life in the fryer, but also a superior quality chip that will remain crisper on the plate for longer.” Ellis then speaks of the importance of the homegrown aspect of this latest innovation on SDOSA’s part. “We think it is a product with a huge amount of merit, for the South Africa market in particular,” he adds. “Being based on domestic soybean oil, it is, by extension, going to be fiercely cost-competitive right throughout the year. Right now, South Africa does not produce sufficient sunflower oil to meet its own needs, which means that at certain times of the year imports are necessary; in contrast, we are now completely self-sufficient in soybean oil. “This represents a wholesale change in the dynamic of the vegetable oil market, and we have developed BettaFry to capitalise on this change.” Ellis is in no doubt as to BettaFry’s ability to become a mainstay within the market, he concludes. “It is the result of a massive amount of development and testing work,” he states. “While it is still early days, and people are familiar with Crispa and the performance and quality those products provide, by introducing something like BettaFry we are confident that we can both allow, and convince, the market to make that key transition and embrace the power of a soy-based frying oil.”
WWW.SIMEDARBYOILS.COM
www.enterprise-africa.net / 37
NESTLÉ ESAR
Contributing to a
Healthier Future PRODUCTION: Jamie Waters
Nestlé needs but scant introduction: The world’s largest food and beverage company, overseeing more than 2000 brands ranging from global icons to local favourites and present in just shy of 200 countries across the globe. Alongside the provision of the planet’s favourite food and beverage products have been concerted efforts to localise production, tackle youth unemployment, and confront the universal concern of plastic pollution. 38 / www.enterprise-africa.net
INDUSTRY FOCUS: FOOD AND BEVERAGE
//
For more than 150 years Nestlé has tasked itself with shaping a better and healthier world. “Since 1886,” the company stresses, “we have created products that enhance quality of life and
// NESTLÉ’S INVESTMENT SUPPORTS THE GROWTH OF THE LOCAL ECONOMY BY LOCALISING PRODUCTION AND SETS A POSITIVE EXAMPLE FOR THE INDUSTRY // 40 / www.enterprise-africa.net
contribute to a healthier future.” In 1870 the first of these products arrived in South Africa, where the company has been formally entrenched and firmly rooted for more than 100 years having formally registered in 1916. Behind Swiss pharmacist Henri Nestlé’s establishment of the now world-renowned brand were the dual spirits of innovation and goodwill, values which continue to coarse through the veins of this global icon today. “Every day, we touch the lives of billions of people: From the farmers who grow our ingredients and the families who enjoy our products, through the communities where we live and work to the natural environment upon which we all depend,” Nestlé sums up.
LOCALISED PRODUCTION “We believe that our company will be successful in the long term by creating value for both our shareholders and for society as a whole. This approach, called Creating Shared Value (CSV), is the principle for how we do business.” Most critical among these CSV priorities, Nestlé goes on to explain, are those areas of greatest intersection between Nestlé’s business and society, such as nutrition, rural development, and water. One key ambition of Nestlé’s is to help improve livelihoods and develop thriving communities, borne out this year in the localisation of its trademark coffee mixes, including the Continues on page 42
INDUSTRY FOCUS: FOOD AND BEVERAGE
Continued from page 40 NESCAFÉ Gold range and NESCAFÉ RICOFFY 3in1, at Nestlé Babelegi, in a bid to support both economic development and job creation. Coinciding with Mandela Day, on July 18th Nestlé inaugurated the coffee mixes manufacturing plant in Babelegi, Hammanskraal, in testament to an unbending dedication to employment creation, community upliftment and economic development. “We are excited to officially open our NESCAFÉ coffee mixes manufacturing plant and demonstrate our dedication to the local market,” beamed Carl Khoury, Business Executive Officer, Coffee and Beverages at Nestlé East and Southern Africa Region.
42 / www.enterprise-africa.net
“The importance of revitalising South Africa’s manufacturing sector, including its contribution to the economy and export promotion, is emphasised in key national policies such as the Reconstruction and Recovery Plan. We take pride in our investment in this production plant as it reflects our dedication to nurturing the potential of the region and contribution to rebuilding the economy.” “Nestlé’s investment supports the growth of the local economy by localising production,” added Brian Soldaat, Director Investment Promotion (Agri-Processing) from the Department of Trade, Industry and Competition of South Africa. “This sets a positive example for the industry, showcasing the importance of
collaboration with local communities, economic development, and sustainable business practices.” SUSTAINABLE FUTURE Nestlé exemplifies the commitment so urgently required in South Africa to empower young professionals and, in turn, invest in its own future success. A recently revealed youth unemployment rate of 32.2% in Southern Africa underscored explicitly not only the uphill battle faced by young people across the region today in accessing job opportunities, but also the pressing need of comprehensive support systems to help graduates secure and retain employment. “In a job market that grows increasingly cutthroat, the development
NESTLÉ ESAR
LEVEL UP WITH OUR FINEST QUALITY FATS AND OILS
www.simedarbyoils.co.za
@simedarbyoilssa
011 896 9002
// FORWARD-THINKING ORGANISATIONS RECOGNISE THE IMPORTANCE OF NURTURING AND DEVELOPING THE POTENTIAL OF YOUNG TALENT // of youth skills has emerged as a vital focal point, demanding urgent attention,” Ndumiso Skosana, Brand Manager, Nutrition, Nestlé ESAR, assesses. “Forward-thinking organisations recognise the importance of practical, long term and hands-on initiatives to nurture and develop the potential of young talent. “Empowering youth for success creates a ripple effect, as these individuals go on to make a positive impact in their communities and beyond.” “Our aim is to have a positive impact on society while we grow
our business,” Nestlé sums up. “We enable healthier and happier lives for individuals and families, we help develop thriving and resilient communities, and finally, we steward the planet’s natural resources for future generations.” These ambitions have also led Nestlé to broach the universal issue of plastic, the versatility and convenience of which have brought about revolutions in myriad industries, from packaging and transportation to healthcare and electronics. “However, the exponential rise in plastic production has led to a growing concern - the environmental
511 Commissioner Street, Boksburg
impact of plastic waste,” Nestlé counters. “There is critical individual action, corporate interventions and community contributions towards the global goal of recycling plastic. Key from business is championing research and innovation on recycling, building recycling infrastructure and influencing policy updates to support circular economy principles. “These interventions drive industry-wide changes and promote the adoption of more sustainable practices, all critical in quantifying our efforts as we collectively work towards achieving global net zero emissions by 2050.”
WWW.NESTLE-ESAR.COM
www.enterprise-africa.net / 43
ADCOCK INGRAM
Health Specialist in Peak Condition PRODUCTION: Sam Hendricks
A leading South African pharmaceutical manufacturer, Adcock Ingram manufactures, markets, and distributes a wide range of healthcare products and is a leading supplier to both the private and public sectors. A rich heritage, proud history and diversification into new markets sees Adcock Ingram positioned today more strongly than ever. 44 / www.enterprise-africa.net
INDUSTRY FOCUS: PHARMACEUTICALS
//
With its beginnings as a small Krugersdorp pharmacy founded more than 130 years ago, Adcock Ingram now ranks as the second-largest local manufacturer in the private pharmaceutical market and is the second-largest supplier to the public sector, having branched out into new product development, manufacturing, distribution and sales and marketing along the way. Noteworthy is the major share the company commands of the critical care market as the largest supplier of critical care products to the public sector and hospitals. “Throughout our rich history we have continually evolved to keep up with the expectations and needs of all our stakeholders,” the company relates. “Our mission is to provide quality products that improve the health and lives of people in the markets we serve.”
46 / www.enterprise-africa.net
DIVIDE AND CONQUER “Adcock Ingram provides an extensive portfolio of branded and generic medicines. It also has a strong presence in over-the-counter brands, and is South Africa’s largest supplier of hospital and critical care products.” Adcock Ingram’s Consumer division competes mainly in the unregulated Fast Moving Consumer goods (FMCG) market, with products also distributed and marketed in modern and traditional trade outlets. “We continue to focus on the marketing, selling and distribution of healthcare, personal care and homecare brands,” the company expands, with Adcock Ingram’s strategy to pursue valueadding acquisitions exemplified by the 2020 acquisition of Plush, the fourth-largest player in the market with a proud heritage of over 55 years.
“The Over the Counter (AI OTC) division manufactures, markets and sells medication with a focus on brands sold predominantly in retail pharmacy, where the pharmacist plays a role in the product choice,” Adcock Ingram offers of this further key arm which takes on highly competitive markets such as self-care pain management, allergy and energy. Arguably most exhaustive in scope is Adcock Ingram’s Prescription division, which has worked tirelessly to build and offer a wealth of medicines in targeted therapeutic areas for patients consulting healthcare professionals. “Mental health has been thrust into the spotlight due to COVID-19,” the company says of its Central Nervous System (CNS) provision, one of nine areas of expertise. “We remain a partner of choice for multinational
ADCOCK INGRAM
// WE’RE CONSTANTLY TRANSFORMING INTELLECTUAL IDEAS FROM THE BOARDROOM, THROUGH SCIENTIFIC DEVELOPMENT AND VERIFICATION, TO ENSURE CONSISTENCY IN THE END PRODUCT // companies with CNS brands, offering treatments for a wide range of psychiatric and neurological disorders.” A leading manufacturer and supplier of hospital and critical care products in Southern Africa, Adcock Ingram Critical Care (AICC) offers products through multiple portfolios and across wide ranging customer channels, the company outlines. “Beyond its world-class commercial capability,” it says, “AICC manufactures an extensive range of products in its unique dual process factory which comprises a comprehensive plastic extrusion plant together with a fully accredited pharmaceuticals manufacturing facility.” RESILIENT PORTFOLIO Quality innovation and technology are fundamental elements of the Adcock Ingram research and development DNA, as is the commitment to consistently evaluate its recognised and successful brands in order to continuously improve on formulation design. “We’re constantly transforming intellectual ideas from the boardroom, through scientific development and verification, to ensure consistency in the end product,”. the company says. “Ultimately we aim to achieve the desired therapeutic effect in our consumers.” Andy Hall, CEO, attributed a large share of Adcock Ingram’s most
PROFESSIONAL MULTI -DISCIPLINARY BUILT ENVIRONMENT CONSULTANTS
Our services: As a professional multidisciplinary team we strive to share our passion, knowledge and expertise with clients who require exceptional service.
Engineering Architecture Project Management Dispute Resolution Quantity Surveying Installation Solutions
www.mdcc.co.za
recently-released financial fortitude to exactly this: being dynamic, willing to change and diversify when required. “The Group’s pleasing set of financial results can be attributed to our diverse and affordable portfolio of brands and our ability to adapt to changing market dynamics,” he commented. Among the standout figures was a 5% increase in turnover to reach R9.1 billion, while headline earnings per share (HEPS) increased by 12% to 561.3 cents and total dividend increased 17% to 250 cents per share. New products, including E45 from Karo Pharma, contributed 4.2% to the increase and overall price realisation of 3.4% was achieved in the period. “The significantly weaker exchange rate, increased production costs and significant cost push from suppliers were mostly compensated for by improved factory throughput
and efficiencies, as well as selling price increases in the non-regulated portfolio,” added Adcock Ingram. “The strength in the margin, combined with just a 3.1% increase in operating expenditure, led to a trading profit increase of 6.1% to R1.18 billion.” “We are confident in the resilience of our portfolio of brands but remain cautious about the general state of our operating environment,” Hall concluded. “We welcome the recent ‘top-up’ Single Exit Price adjustment of 1.73%, which will assist in alleviating the margin pressures on our priceregulated basket of products.”
WWW.ADCOCK.CO.ZA
www.enterprise-africa.net / 47
MARSH AFRICA
Understanding Modern Business Risk
Alongside the World’s Best PRODUCTION: Sam Hendricks
As one of the world’s premier insurance brands, Marsh has long been viewed as a company with all the answers. But as modern risks continue to morph and change, there is a need to stay up to date, and Marsh has that ability. New markets, new tools, and fresh ideas are helping to keep this powerhouse at the cutting edge of the market. 48 / www.enterprise-africa.net
INDUSTRY FOCUS: FINANCIAL SERVICES
//
Recognised the world over as one of the biggest and best names in risk management and insurance, Marsh McLennan is a powerhouse with more resources, more insight, more history, and more global presence than almost any other company in the space. The combination of Marsh, Guy Carpenter, Mercer, and Oliver Wyman makes for a formidable offering and portfolio which has supported clients, both private and commercial, for decades. In Africa, the group has strong interests across the continent acting as a leading risk advisor and insurance broker. With tens of thousands of people around the world, in 130 countries, Marsh’s differentiator is that it still understands the local conditions in the markets that it operates in. Whether it’s climate risk in East Africa, infrastructure breakdown in South Africa, or political risk in West Africa,
50 / www.enterprise-africa.net
the company – and the group – has feet on the ground delivering expert insight, advising clients appropriately on the risks that face their business or personal circumstances. But even with local insight and world-class products, risk is a constantly changing element that must be monitored closely to ensure a reasonable response. MOROCCO EXPANSION After historic success in South and southern Africa, there has been a push to take market share in other parts of the continent with strong economic conditions and healthy underlying indicators. In November 2022, Marsh announced that it would acquire the remaining share of Beassur Marsh, a leading insurance broker in Morocco. Following the acquisition of an initial stake in 2019, the
new deal will see Marsh grow its presence in North and West Africa. When the deal finalises, the new entity will be known as Marsh Morocco and current CEO Mehdi Tazi will continue, supported by Anis Safraoui, Head of North and Western Africa and other regional leaders. Christos Adamantiadis, CEO, Middle East and Africa, Marsh, said: “Following our successful investment three years ago, we’re excited to acquire a majority stake in Beassur Marsh as we continue to develop our expertise and support our clients in the Moroccan insurance market. The combined business will enable us to invest further in the business and set a new standard for insurance and risk advisory services in North and West Africa.” The changing nature of risk has encouraged expansion into new markets as clients are desperate for a deeper understanding of
MARSH AFRICA
new risks. Whether emerging from technology or innovation, or from changing threats from climate or societal instability, the need for intelligence and data is growing. MODERN RISK Marsh has identified a number of risks that are currently being overlooked, especially for businesses. The company conducts research across all industry sectors and local specialists quickly gain intuition around where the group could bring a solution. Three key concerns for African leaders to mull are climate, trade credit, and cyber security. Scott Williams, ESG Coordinating Director for Marsh MEA, says that the well-documented implications of climate change such as rising sea levels, extreme weather events, loss of
habitats, and more are an existential risk to society. But risks to business, categorised as transition risk and physical risk, have not been adequately addressed by many. Transition risks involve business-related elements such as technology and reputation. With little data available for a long-term energy transition from an insurance perspective means that choosing the right cover can be hard. Physical risks involve acute and chronic pain points, such as the acute devastating floods in KwaZulu-Natal last year. Chronic pains develop as a result of much longer-term changes which are not yet fully understood and often do not have policies developed to support. Almost all companies in the Middle East and Africa will not have the resources to understand these risks in depth, and so partnering with a expert is essential. “While many forward-looking
CARE AND EXCELLENCE DEFINE OUR BROKER PARTNERSHIPS
companies in the region are already taking action to reduce their impact on rising temperatures and boost their resilience, the specific timelines and exact outcomes of the evolving climate change threat remain unclear,” says Williams. “The interconnected nature of economies, sectors, and global markets means that your MEA business will likely be impacted at some point in the near future,” he adds. A more recognised risk is nonpayment or missed payment from customers. Typically a more understood risk for businesses and insurers, there are many products in place to mitigate. With bleak economic outlook for South Africa and other countries in the region, the expectation from most is that bad debt figures may rise with SMEs bearing the brunt. Trade
At Old Mutual Insure, we understand that choosing a non-life insurer is not just a business decision but a choice that impacts lives. Our broker partnerships are built on trust, care, and excellence. Our services not only provide you with tailored insurance solutions but also the assurance that you can confidently pursue your own business dreams and ambitions, knowing that your clients are protected and secure. Our promise is to provide care where it matters most, and your peace of mind is our top priority. Choose Old Mutual Insure and experience great things.
Caring for what matters to you most.
Old Mutual Insure Limited is a licensed FSP and non-life insurer.
www.enterprise-africa.net / 51
INDUSTRY FOCUS: FINANCIAL SERVICES
// THE INTERCONNECTED NATURE OF ECONOMIES, SECTORS, AND GLOBAL MARKETS MEANS THAT YOUR MEA BUSINESS WILL LIKELY BE IMPACTED AT SOME POINT IN THE NEAR FUTURE // credit insurance from Marsh protects against this risk and offers a number of associated benefits. Improvement in cashflow, allowing for exploration of new markets, increasing sales volumes, and reducing the risk of insolvency are all achieved with the right cover. But finding the right cover is critical. “Amid slower global economic growth, high energy prices, inflation, and higher interest rates, companies in the Middle East and North Africa are increasingly at risk of delayed payment or non-payment by customers based either in the region or in the UK, Europe, US, and Latin America where late payments have spiralled out of control in some sectors,” explains Milind Jain, Marsh’s Credit Speciality Leader, Middle East and North Africa. “In order to protect themselves
52 / www.enterprise-africa.net
against bad debts, information is key. Companies should lean on their insurers and relevant information providers such as trade associations and professional bodies to perform due diligence on partners ahead of providing them with goods and services. “Companies should consult a broker to make sure they have the most suitable insurance coverage in place and are taking all measures available to mitigate their trade credit risks,” he says. CYBER THREAT Perhaps one of the most important risks that Marsh has identified for businesses is the complete lack of protection against cyber-attacks. Not a new phenomenon, many find it puzzling that companies of all shapes and sizes are still so exposed
to cyber threats, and many have little or no plans in place to handle such a problem. Whether it’s theft of data, ransomware, extortion, financial loss, or something different, cyberattacks are one unwelcome element of the still blossoming digital age. In a report prepared by Marsh and Microsoft, statistics suggest that just 4% of businesses in the Middle East and Africa are confident in their organisations ability to deal with cyber threats. “The vast majority of organisations are still struggling to understand the risks posed by their vendors and digital supply chains,” says Christos Adamantiadis. He highlights the UAE where over the past few years there have ben more than 166,000 victims of cybercrime, representing a combined loss of more that US$745 million. For businesses. The report also found that 37% of businesses had no insurance related to cyber risk, and few were implementing enterprise-wide solutions that incorporate all teams and not just the IT department.
MARSH AFRICA
THE LEADERS IN ENGINEERING UNDERWRITING Mirabilis, a subsidiary of Santam, is the leading underwriting agency of construction and engineering insurance, offering flexible, structured and packaged solutions. Products: • Contractors’ All Risks Insurance (CAR) • Erection All Risks Insurance (EAR) • Advance Loss of Profits Insurance (ALOP) • Contractors’ Plant and Equipment Insurance (CPE) • Machinery Breakdown Insurance (MB) • Loss of Profits following Machinery Breakdown Insurance (MLOP) • Deterioration of Stock Insurance (DOS) • Electronic Equipment Insurance (EEI) • Business interruption following Electronic Equipment Insurance (EEI BI) • Seamless Project Insurance (SPI)
Contact us on: +27 (11) 880 8200 | www.mirabilis.net | info@mirabilis.net Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies.
“Executives’ confidence in their organisation’s core cyber risk management capabilities – including the ability to understand and assess cyber threats, mitigate and prevent cyber-attacks, and respond to attacks - remains a major concern,” details Adamantiadis. “Indeed, 60% of respondents stated that they have not even conducted a risk assessment of their vendors or supply chains. “Given the accelerated growth in the complexity and scale of cyberattacks in the MENA region over the past few years, these findings are particularly troubling. The toll of almost three years of unrelenting workplace disruption, digital transformation, and ransomware attacks does not yet appear to have made a significant impact on the way that business leaders think about risk. This is surprising given the
nature of a series of high-profile events. “Every business, everywhere and no matter their size or sector, must act now to protect themselves, their supply chains and the wider economy,” he highlights. “Modern-day cyber incident response plans should be refreshed, with a new focus that takes into account evolving forms of cyber-attacks, such as ransomware, and the increased sophistication of cyber attackers,” adds Marsh Africa CEO, Spiros Fatouros. Thankfully, Marsh and the wider Marsh McLennan Group is well-positioned to guide clients on a lasting journey that will allow for deep understanding of risk, and plan to mitigate that risk wherever possible. Gone are the days of a business thinking only about products being stolen or accidental fires on premises
as their main danger. Even for small businesses, the picture is now much more complex and a global partner with local knowledge is a great asset. Marsh is as experienced as they come. “No longer a company of companies, we are one enterprise with four global businesses that are taking on the great challenges of our time—together,” the company says. “Our Purpose has never been more important or more relevant: We make a difference in the moments that matter. We do this best when we bring our collective expertise to meet the most complex challenges that our clients and society face today.”
WWW.MARSH.COM/ZA
www.enterprise-africa.net / 53
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.
NOV
21
DEC
7
WEST AFRICA PLASTPRINTPACK NOV 21-23 | ACCRA, GHANA The plastprintpack West Africa is a trade fair for plastics, chemicals, printing and packaging technology. The fair is aimed at professionals in the industry. The visitor can get information of the newest products and technologies for the plastics and chemical industries and in the printing and packaging industry in a pleasant atmosphere. The fair offers latest information about products and market trends as well as news from the industry. It is also an excellent opportunity to learn more about new innovations.
CAIRO WOOD SHOW 2023 DEC 7-10 | CAIRO, EGYPT The 7th Edition was a success, exceeding expectations by providing a unique platform for Wood and Woodworking Machinery professionals to interact and close lucrative business transactions during the exhibition. The Cairo WoodShow 2022 featured B2B discussions, Conferences, and outstanding innovations. Cairo WoodShow 2022 provides an excellent platform for the industry to interact, share insights, and provide innovations that will promote positive business conditions and innovative practices. It was an incredible experience to be a part of all the excitement and to see the industry gather to form real connections, uncover significant leads, and gain access to premium information. Why Exhibit • Access to more than 10,000+ elite trade professionals from the North Africa region and beyond to promote and display your latest products and services. • Connect with key visitors from the wood industry having purchasing authority. • Establish new contacts and expand your business reach by meeting relevant business partners (suppliers, manufacturers, trade associations and institutions). • Learn about latest industry trends, technologies and products at display by interacting with industry experts.
FEB
12
AFRICAN AIR EXPO: EXHIBITION & CONFERENCE FEB 12-14 | CAPE TOWN African Air Expo is the first Aviation Convention & Exhibition for Africa. The aim of African Air Expo is to further connect the Aviation industry to South Africa. This event will provide the perfect platform to connect professionals across all areas of the industry and promote successful worldwide trade.
54 / www.enterprise-africa.net
NOV
WEST AFRICA PLASTPRINTPACK
DEC
SWAHILI FASHION WEEK 2023 DAR ES SALAAM, TANZANIA DEC 1-3
DEC
PRACTICAL NIGERIAN CONTENT FORUM 2023 YENAGOA, NIGERIA | DEC 4-7
DEC
M.A.T. - MOROCCAN AUTOMATIVE TECHNOLOGIES 2023 CASABLANCA, MOROCCO | DEC 5-7
DEC
7
CAIRO WOOD SHOW 2023 CAIRO, EGYPT | DEC 7-10
DEC
FOOD AFRICA CAIRO
FEB
AFRICAN AIR EXPO:
21 ACCRA, GHANA | NOV 21-23 1 4 5
12 CAIRO, EGYPT | DEC 12-14 12 EXHIBITION & CONFERENCE CAPE TOWN | FEB 12-14
Sustainability Lives Here.
We Are Avient Avient Corporation is a global manufacturer of specialized and sustainable polymer materials. We’re focused on solving the world’s most complex material science problems by creating innovative products that enhance application performance and protect the environment. www.avient.com Avient South Africa 329 Tungsten Road, Strydompark, Gauteng 2194, South Africa PO Box 2228, Randburg, South Africa, 2194
climateneutralgroup.co.za
Leading the way in African Carbon Development We are Africa’s carbon experts. With local know-how and global partnerships, we’re committed to boosting carbon credit projects across multiple sectors, with a focus on nature-based solutions. Join us in unlocking Africa’s potential in the carbon markets.
CARBON PROJECT DEVELOPMENT: Feasibility Certification Issuance CARBON CREDIT TRADING: Sale and purchase of premium African and International Carbon Credits.
proud members of