03

Explore Issue 3 of Africa Outlook Magazine Magazine, the B2B magazine for Africa.

Latest 03 Corporate Stories

Africa Outlook Issue 3

VIEW THE Africa Outlook Issue 3 BROCHURE

Editor By Editor

KFC Sub-Saharan Africa

Unlocking Africa: Inside KFC As the KFC brand continues to expand further across Africa, Africa Outlook talks to Bruce Layzell, KFC general manager for new African markets. Writer Ian Armitage Project manager Eleanor Watson With the latest McKinsey Report suggesting consumer-facing industries in Africa are expected to grow by more than $400 billion by 2020 many businesses are taking the first steps towards establishing themselves on the continent or, if already in Africa, to build sustainable business models and expand their footprints. KFC is one such business and its African expansion has been well documented – we've featured it a few times over the last couple of years (within this magazine and in our previous incarnation as South Africa Magazine). The global fast food giant is not new to Africa. Its South African business has been open for more than 40 years. "Africa is undoubtedly one of the fastest growing regions globally and KFC is fully committed to harnessing this opportunity and building a sustainable business on the continent," says Bruce Layzell, KFC General Manager New African Markets. "African consumers are coming to expect world class offerings and why shouldn't they?" One of the main drivers of Africa's growth is the increasing pace of urbanisation and consumerisation. By the end of 2012, KFC had 63 new African restaurants, with operations in Angola, Nigeria, Namibia, Botswana, Mozambique, Lesotho, Malawi, Swaziland, Ghana, Kenya and Zambia. The 63 figure excludes South Africa, Egypt, Morocco and Mauritius, which if included, would mean there are almost900 KFC restaurants on the continent.

Editor By Editor

National Real Estate

Keeping it in the family National Real Estate in Bloemfontein currently manages over 12,000 residential properties in both the sectional title and property rental portfolios. It also manages more than 1,200 commercial properties and offers insurance services. Writer Ian Armitage Project manager James Mitchell Some of the world's most instantly recognisable businesses are familyowned. News Corp, Benneton, L'Oréal, Playboy, Gucci, Carnival Cruise Lines, and car giant Ford Motor Co, are just a few. Globally, family businesses - defined loosely as a business in which a dominant family owns 51 percent of an enterprise - account for around 70-80 percent of all businesses and are acknowledged as the strategic backbone of most economies and a key source of growth. Nowhere is this truer than in Africa - think of the likes of the Ackermans in South Africa, the Kenyattas in East Africa, and the Dangotes in West Africa. All of these have helped define the economies and the business environments of the regions in which they operate. The du Toit family's business is doing the same. National Real Estate was established in 1933 in Bloemfontein. Over the years it has had some name and ownership changes and today it is run by the du Toits, who took over in 2003. The company, which specialises in property management and related industries, is a market leader in the property industry in the Bloemfontein area. "It is our mission to be totally committed in serving our customers in the most effective means possible," says CEO Marius du Toit. "Family businesses

Editor By Editor

Eigenbau

Engineering success Africa Outlook talks to Derek Weston, the General Manager of Sandton-based civil engineering contractor Eigenbau. Writer Ian Armitage Project manager Stuart Shirra Founded by Eddie Ross in 1981, civil engineering contractor Eigenbau is now almost unrecognisable from the firm that initially focused on concrete construction. In the years since it has diversified and now has many more strings to its bow. "We've evolved," says Eigenbau General Manager Derek Weston. "Our business now encompasses almost every aspect of civil engineering and building and we have our own Mechanical Engineering Division, which specialises in equipment for water and sewage treatment plants and pumping stations." That division was formed in 1997, he says, born out of the acquisition of Sewapurco. "It saw us broaden our activities and means that we've had a reasonably good last few years, despite the downturn. We were fortunate that we had some long term projects/contracts that took two or three years to complete during that period. Obviously there was a height of activity in getting everything ready for the 2010 FIFA Soccer World Cup and there was a lot of work building highways, stadiums and things like that. When that came to an end it left a tremendous vacuum. The government keeps reminding us that they have plans for infrastructure development but we are not seeing a lot of tenders coming out at this point." Several water projects across South Africa have contributed to Eigenbau's recent success. "Our Mechanical Engineering Division has been quite active on the water side. Certainly over the

Editor By Editor

Murray & Dickson Construction

30 not out In its 30 years of existence Murray & Dickson Construction has undertaken building projects in the commercial, retail, industrial, educational and leisure sectors – completing everything from offices, shopping centres and large factory warehouses to mini factory complexes, motor showrooms, schools and university buildings. This coupled with its Civil Engineering expertise allows the company to compete in a broad spectrum of construction projects. Writer Ian Armitage Project manager Stuart Shirra You may or may not know that 1983 saw the release of Microsoft Word and was the year that McDonald's first introduced the McNugget. In Gauteng, and certainly the offices of Murray & Dickson Construction, the year is remembered for a different but very special reason. It was the year that Andrew Murray – and a partner who since left the business – launched the company. While it was a "tough slog" in the early years, the business has grown exponentially from its modest beginnings to a company that now handles most facets of building and civil engineering construction within South Africa. "I started it with a fellow civil engineer and the idea was to create a construction company that was essentially a general contracting firm. It started off very small. We did weekend work building garden walls, putting vinyl down in blocks of flats and so on. We were fortunate to get an early job where we designed and constructed a factory for a client. That was in 1983. Shortly thereafter the economy took one of its many nosedives and my partner

Editor By Editor

Autohaus Windhoek

Wheeling ahead Volkswagen, Germany's biggest carmaker, has been leaving rivals in the dust. Africa Outlook talks to JP Pretorius, Dealer Principal and Director of Autohaus Windhoek, the only distributor of the whole Volkswagen range in Namibia. Writer Ian Armitage Project manager Stuart Platt When Ferdinand Piëch (who is now Chairman) arrived as Volkswagen's CEO in 1993, things looked dire. The company was overspending. Inefficient and overstaffed, it had lost its reputation for quality. How things have changed: in the first quarter of 2013, VW Group deliveries increased by 4.8 percent to 2.3 million vehicles worldwide, while the company's share of the global passenger car market rose year-on-year, and Group sales rose to 2.4 million vehicles. Autohaus Windhoek is the only distributor of the whole Volkswagen range in Namibia. It distributes Volkswagen Passenger and Commercial vehicles and the Swakopmund branch sells and services VW Passenger vehicles. It also distributes Audi vehicles, says JP Pretorius, Dealer Principal and Director of Autohaus Windhoek. "We are the sole distributor of Audi in Namibia as well as the country's biggest VW dealership with branches in Windhoek and Swakopmund. We specialise in passenger and light commercial vehicles." Autohaus is part of Metje+Ziegler Ltd, an automotive specialist that has been around for 106 years. "We have a fantastic heritage," Pretorius explains. Namibia is a marginal market compared to its South African neighbour but the industry's growth prospects are helped by the fact the country is one of the wealthiest in sub-Saharan Africa on a per capita income basis. The country's economy is booming

Editor By Editor

ADB Airfield Solutions

Taking to the skies As Africa continues to grow, so do its airports. ADB Airfield Solutions Southern Africa's CEO Manfred Oettl tells us more. Writer Ian Armitage Project manager Nick Norris The African continent has ambitious growth and expansion plans. A key part of that is creating new airports, expanding current airports and professionalising the existing ones. In a world where airport safety remains a priority and runway incursion accidents are on the rise, technologies such as airfield lighting systems, precision approach and landing systems, surface movement radars, and visual docking guidance systems are imperative for ensuring airport safety. This is where ADB Airfield Solutions comes in, playing a major role through its comprehensive and internationally certified product range of safety solutions and management systems. The company's integrated solutions such as Advanced Surface Movement Guidance & Control Systems (A-SMGCS) include products and services to ensure safety from landing to take off, covering LED runway and taxiway lights, guidance signs and microprocessor controlled constant current regulators. "We have an innovative portfolio ranging from design and development, installation, maintenance and consulting to training," says ADB's Southern African CEO Manfred Oettl. "We're well aware of the potential in Africa for our business and our solutions support airport operations and enable them improve their performance and reliability." Worldwide, ADB's solutions have been successfully integrated across 2,000 civil and military airports and heliports. The company was incorporated in 2008 and is based in Johannesburg. ADB Airfield Solutions (PTY) Ltd operates as a subsidiary of ADB BVBA. "There will be a lot

Editor By Editor

Feltex Automotive

King of the trim Africa Outlook profiles Feltex Automotive a leading supplier of a wide range of quality automotive acoustic, comfort and trim components. Writer Ian Armitage Project manager Tom Lloyd Is this a good time to be involved in South Africa's car industry? Well yes: South African car sales in Q1 increased 4.1 percent from 156,673 vehicles to 163,239 vehicles and according to the National Association of Automobile Manufacturers of South Africa (Naamsa) the motor industry sailed a steady course during the first quarter of this year. Naamsa director Nico Vermeulen said production at South African plants was "well on track", and that "if production continues at the levels seen in the first four months of the year," production growth could come in "as high as 25 percent". However he said Naamsa was "remaining conservative," and maintaining a prediction of 18 percent (or about 640,000 units) production growth for the year. It's good news but according to Econometrix chief economist Dr Azar Jammine we should expect a "sharp slowdown in domestic sales growth" later this year. Whatever happens, increasing sales is good news for manufacturers like Feltex Automotive, a leading South African supplier of quality automotive acoustic, comfort and trim components. Feltex Automotive is a Division of KAP Manufacturing Proprietary Limited which is a 100 percent subsidiary of KAP International Holdings Limited. The Automotive Division comprises seven business units – Feltex Automotive Trim, Feltex Fehrer, Feltex Foam, Caravelle, Feltex Unifrax, Futuris Feltex and Autoneum Feltext - that supply products directly and indirectly to the South

Editor By Editor

Ingram Micro Mobility

Brightpoint rebranded as Ingram Micro Mobility Earlier this year BrightPoint was rebranded Ingram Micro Mobility. Africa Outlook learns more. Writer Ian Armitage Project manager Donovan Smith In 2012 IT giant Ingram Micro, the world's largest wholesale technology distributor and a global leader in IT supply-chain, mobile device lifecycle services and logistics solutions, acquired BrightPoint for a cool $840 million, including $190 million in debt as part of its strategy to drive convergence across IT and Mobility markets. Ingram Micro's acquisition of BrightPoint marked an important milestone for both companies, but more importantly it offers tangible benefits to its customers and vendors who now have access to the broadest portfolio of mobility and converged technology products and the most comprehensive suite of supply chain solutions for mobile devices. Ingram Micro Mobility has positioned itself at the centre of the flow of products and commerce within the mobility industry, which will help them anticipate demand and create connections between manufacturers, retailers and carriers, while helping to enable the convergence of IT and mobility. "We executed the integration against a clear cut plan which has impacted the business more positively than we ever anticipated. The Ingram Micro brand and reputation has been well received by our vendors and our customers," says Bruce Cockburn, Regional Managing Director, Africa (Mobility & IT). As a vital link in the technology value chain, Ingram Micro creates sales and profitability opportunities for vendors and resellers through unique marketing programs, outsourced logistics and mobile solutions, technical support, financial services and product aggregation and distribution. The

Editor By Editor

Olam Mozambique

Olam to build Mozambique's first roller cotton gin Olam International, a leading global integrated supply chain manager and processor of agricultural products and food ingredients, has started construction of its first state- of-the-art roller cotton gin in Mozambique. Writer Ian Armitage Project manager Eleanor Watson This is an exciting time for Olam Moçambique, which plans to make large investments over the next four years. Indeed, last month, Olam International, of which Olam Moçambique is a subsidiary, started construction of its first state-of-theart roller cotton gin in the country. The $2 million development signifies Olam's "continued progress in increasing local cotton production and strengthens supply chain efficiencies by investing in processing operations that are close to smallholder cotton farmers," it said in a release. " Since Olam started sourcing cotton in Mozambique in 2008 we have worked closely with farmers, local government and independent partners to increase yields and improve production methods," Indranil Majumdar, Business Head Natural Fibres, Olam Moçambique, said at an official ceremony at the site in Beira, Sofala Province. "To date, our volumes have risen fourfold and we are now able to progress existing plans to develop our third cotton gin in Mozambique. The roller gin will be the first of its kind here and will complement our saw gins to provide the additional capacity required to support future growth. This is an important milestone for Olam Moçambique and will contribute to the local economy through job creation and market growth." Once completed, the new facility - equipped with high speed rollers and modern

Editor By Editor