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FORBES VOLUME NUMBER CONTENTS — FEBRUARY 2013 “We did very badly, but that failure was very useful to me because it taught me a lot about what not to do.” “I knew what this would mean for me: wealth destruction, business destruction and family destruction.” “What it really is, is an investment in leadership and an investment in the future of a country.” — Hakeem Belo-Osagie Chairman of Etisalat — Carl Bates Author of: The Laws of Extreme Business Success — Oprah Winfrey American talk show titan PAGE 14 PAGE 22 PAGE 64 | EDITOR’S DESK // Chris Bishop 12 | BRIEF 360° FORBES FOCUS 28 | The Tide Turns Namibia’s ruling SWAPO (South West Africa People’s Organization) has signaled a break with liberation-era politics by electing the pro-business, trade and industry minister Hage Geingob as their next presidential candidate BY John Grobler 30 | Mangaung Unpacked It was a fierce and emotional battle over who would lead Africa’s biggest economy into the future There were heated exchanges and cries of corruption by Vuyo Mvoko LIST 35 | The 20 Youngest Power Women In Africa Here are some of the young African women, who have left their footprints on Africa soil in the last year Compiled by Farai Gudan COVER PHOTOGRAPH BY Kelechi Amadiobi-Obi FOR FORBES AFRICA; Retouching by the Vanilla Rain Creative FEBRUARY 2013 FORBES AFRICA | A world of potential in Africa To create new opportunities you have to start looking at the world a little differently With shifting economic powers, developing nations on the rise and socio-political change happening across the globe everyday – South Africa is looking beyond conventional thinking With abundant natural resources, human potential and growth prospects, Africa holds the key to truly global prosperity in the future South Africa is leading the way with modern infrastructure as well as working with financial institutions to help fund development across the continent – unlocking Africa’s potential FORBES VOLUME NUMBER CONTENTS — FEBRUARY 2013 ENTREPRENEURS 40 | The Rionge Person To Ask For A Bribe She stood up to 17 men demanding a bribe and is now reaping the rewards by Pete Guest 43 | AdVoice Sirdar South Africa RESOURCES SUPPLEMENT 46 | Mozambique’s Startling Transformation The transformation has been such that Beira port’s marketing manager, Felix Jaime Machado, does not recognize the city in which he grew up By Julie Bain 52 | steel yourself for the worst of times Nonkululeko Nyembezi-Heita has enough spirit to tackle the tough times in South Africa’s steel sector but the CEO wishes the country could find its mojo once again By Julie Bain 59 |AdVoice EXXARO LIFE 60 | Nigeria’s Nightingale Nneka sticks her neck out to sing about corruption, oppression and life in Africa, while everyone wants to hear about love By Clair MacDougall 72 | Glide Through Copenhagen For Free Copenhagen is one of the greenest capital cities, which makes sightseeing a breeze By Kristin Palitza TECHNOLOGY 78 | The Return Of The Technocrat Taiwo Otiti, who runs IBM in West Africa, is back home and sitting pretty at the helm By Thebe Rammutle INVESTMENT GUIDE 82 | making money, Making History // Tshepo Tshabalala SPORT 92 | Killer Passes And Presidential Power In The Glory Of ‘96 As the Africa Cup of Nations plays out, FORBES AFRICA looks back on a fairy tale that saw champions born on an emotional, rainy afternoon in Johannesburg By Chris Bishop THIS IS AFRICA 96 | made in china | FORBES AFRICA FEBRUARY 2013 FORBES EDITOR’S DESK — CHRIS BISHOP “Carpe Diem” Be Careful What You Don’t Wish For—You Might Get It D BY CHRIS BISHOP, MANAGING EDITOR eep breath everyone, a new year is here; time to get your breath back after another year of squabbles This continent appears to be riven by squabbles with no end No names, no pack drill but there are perennial squabbles up and down this beautiful continent, over who should run the country, who should make money, who shouldn’t The grounds for these squabbles are, well, take your pick: political, ancestry, geographical location, skin color, language, religion, you name it, people can squabble about it Finger pointing is a game anyone can play The name calling, the investigations, the accusations—from the north to the south, there seems no end Just think, while these squabbles are raging a superpower is very quietly and efficiently cleaning up in Africa Yes folks, if it has evaded you so far, China is growing in Africa, to borrow from a Chinese proverb, like bamboo shoots after rain In mines, factories and shops across Africa, Chinese entrepreneurs are working at capturing business that others either couldn’t see or couldn’t work hard enough to take advantage of Another Chinese proverb: don’t stand by the water and long for fish; go home and weave a net In other words, while we are squabbling, the Chinese are fishing Make no mistake, China is in Africa to | FORBES AFRICA FebrUARY 2013 stay, with trade between the two up to $200 billion in 2012 According to Standard Bank, 18% of Africa’s imports came from China, in the first 10 months of 2012 If you got up this morning and put on your fancy suit and shiny shoes, watched television, played with your children and their plastic toys, used your cellphone and then sat down at your laptop, you could have spent the entire time touching goods made in China On the other side of the coin, China wants: South Africa’s platinum, iron ore and rare earth; copper and coal from Zambia; gold from Zimbabwe and oil from Angola In this resources-themed issue of FORBES AFRICA you will read more of the Chinese hunger for what lies beneath the soil of Africa The state-run companies of China, backed by huge reserves and safe in the knowledge of pent-up demand back home, are making hay while the sun shines over Africa They come in with a ferocious work ethic, keep to themselves, bring in their own experts and get on with it Ruthlessness is key to man’s accomplishment, goes another proverb Trade with China is very popular in this part of the world—it is called “southsouth” cooperation, that is, business between the emerging economies of the southern hemisphere without the help or hindrance of the big brothers in Europe and the States In return, the Chinese build Got something to say? Write to us letters@forbesafrica.com INVESTMENT GUIDE — KENYAN MARKETS Guchu Ndungu A Difficult Feat To Repeat I nvestors at Kenya’s Nairobi Securities Exchange (NSE) had a bittersweet 2012 The NSE 20-Share Index—which measures the performance of the 20-most traded stocks—increased by 30%, making it the third best performing exchange in the first nine months, according to Bloomberg The London Stock Exchange-owned FTSE Group, which launched the FTSE NSE Kenya 15 and FTSE NSE Kenya 25 Indices in 2011, showed returns of 28.4 and 27.45% respectively The two indices outperformed the FTSE Frontier index, which had a 3.55% return; the FTSE All-World Index went up by 10.30%; FTSE Emerging Index rose by 8.43% and FTSE Middle East and Africa Index recorded a 9% growth By the second week of December, the NSE was slightly above the 4,000 psychological point at 4,022 The NSE All Share Index, which tracks all stocks, posted a 35% growth Some NSE-listed companies like CMC, the motor dealer behind Range Rover and Jaguar, were suspended over corporate governance issues, which locked out thousands of investors Last year, NSE’s growth was driven by a rise in profits of blue chip companies, falling inflation and interest rates, and high foreign investor demand The growth drivers were in financials, telecommunications and industrial sectors By November, the stocks with the greatest returns were KCB bank (62.24%), oil marketers KenolKobil (52%), Equity Bank (38%), East African Breweries (36%) and East Africa’s most profitable company Safaricom (35%) 84 | FORBES AFRICA february 2013 Foreign investors played a key role in oiling the exchange’s growth machine: buying shares worth $400 million, selling shares worth $247 million and making net purchases of close to $113 million, in comparison to $17.1 million in 2011 EABL, KCB and Safaricom accounted for 96%, 80% and 96% of shares traded during that period The index dropped 1.5% in November due to market correction and what analysts say is a harbinger of a tough business climate in 2013 In March, Kenya is heading to a much contested election Investors are wary of a repeat of the 2007 postelection violence in which more than 1,000 people died, resulting in a dip in the economy from a growth of 7% in 2007 to 1.7% in 2008 Two of the suspects indicted by the International Criminal Court for the violence, Uhuru Kenyatta and Wiliam Ruto, are leading presidential candidates The international community has threatened to impose economic sanctions if either is elected Companies in cyclical sectors like tourism, hospitality and airlines may also take a hit due to election jitters If the elections are conducted peacefully and the two candidates not have significant influence in government, the NSE may have an even better year in 2013 Foreign investors are expected to continue pouring in The exchange is being demutualized opening the opportunity for more people to own it A new segment for SMEs, which could trigger a flurry of listings, is set to be introduced shortly Samuel Wachira of Drummond Investment Bank, has predicted that equities will remain resilient as most investors are keen on fundamentals and most speculative investors are out The index will remain within the 3,800 to 4,500 points trading range Companies in construction, industrial, financial services and media are expected to be stellar performers in 2013 Kenya’s construction boom is fuelled by private developers trying to bridge the housing shortfall as well as the government, which is building roads and headquarters of new county governments before the elections Political advertising will also boost media companies like Nation Media Group and Scanad, while growing internet use will keep telecoms and IT companies firmly on the growth path Not all counters will have a happy 2013 though Listed companies such as Kenya Airways, Oil marketer KenolKobil, East African Portland Cement and agriculture companies Kakuzi, Sasini and Kapchorua tea have already declared profit warnings, sparking fears of a slow 2013 To propel growth further, the Capital Markets Authority needs less stringent listing requirements: to open up the bond market and increase listed firms to over 500 to include SMEs and services firms Last year, the NSE had more than five rights issues and an Initial Public Offering from UAP, an insurance company Kenyan investors were also allowed to participate in regional IPOs of companies like Rwanda’s brewer Bralirwa and Uganda’s sole power provider Umeme limited, courtesy of the East African community trading bloc rules Investors in Kenya are hoping 2013 will herald more opportunities, elections notwithstanding INVESTMENT GUIDE — NIGERIAN MARKETS Radithebe Rammutle Blue Skies OVER LAGOS T he dark cloud over the Nigerian capital markets has been lifted and on the horizon the market is climbing towards an investment grade rating “The Nigerian market has arrived again because it is the best performer in Africa followed by Egypt This reflects a turnaround as we know that between 2009 and 2011 the market was nose diving,” says Wole Famurewa, head of the CNBC Africa editorial team in West Africa The Nigerian stock market stood out as one of the best-performing African markets in 2012; it recorded an impressive 35% gain in December This surge was driven by foreign investors seeking alternative investments since Western and larger developing countries offered lower returns Although the market continues to be dominated by foreign investors, the good news is that local investors have also increased their participation Due to the fact that foreign investors dominate the Nigerian market many are pointing to international events as the main reason for the stock market performance The US Quantitative Easing (QE3), which occurred in the third quarter, triggered the inflows “The stock market really took off in the third quarter, which coincided with QE3 Now that there is so much liquidity in the world, investors are looking for other outlets,” says Famurewa It is not only the stock market, which showed a positive performance The bond market performance could 86 | FORBES AFRICA february 2013 not be ignored by investors either The Financial Times reported that borrowing costs fell sharply in 2012, after the announcement of the inclusion of Nigerian bonds in the JP Morgan Global Bond Index in August Yields on bonds, due in 2022, dropped by over 450 basis points In December, $190 million of 10-year government bonds was sold with an 11.9% yield, attracting inflows that further strengthened the Naira According to Famurewa, the currency appreciated by 3% last year International rating agency upgrades confirmed investor’s confidence in the West African oilproducing country The last of the rating agencies, Standard & Poor’s, moved Nigeria up to a BB-rating, following three other rating agencies The sentiments are unlikely to dissipate in 2013 Barclay’s intention to add Nigeria to its Emerging Markets Local Currency Government Index in March is expected to trigger further participation in the market Some analysts believe that the rebasing of the GDP, which the National Bureau of Statistics (NBS) was expected to finalize last quarter, will advertise the market and attract several more investors Although this is true, the outcome of the revision is not clear at this stage However, there is a general consensus that there will be a sizeable increase in nominal GDP The upward revision is expected to be between 40 and 60% A 40% adjustment means that the economy will rise to about $425 billion this year, according to Standard Bank estimates This will certainly attract portfolio investors Yet the NSG market capitalization will remain small if pitted against the bigger Johannesburg Stock Exchange (JSE) With the market capitalization of $54 billion the NSG is 358% smaller than the JSE, which is capped at $800 billion Sentiments are that the NSG will not reach the JSE levels until big conglomerates are listed According to Business Day Nigeria, “As a percentage of GDP, the market capitalization of listed companies in South Africa approaches 250 percent, while in Nigeria it is less than 30 percent.” However, there is optimism that with ongoing market reforms many of these firms will list Beyond market reforms, authorities will have to keep the high inflation numbers in check The January subsidy cuts precipitated the inflation surge, though the move was necessary if government had to reduce expenditure Furthermore, the economy needs to diversify as dependence on commodity exports blocks the West Africa nation from an investment grade rating Despite these challenges, which will continue to drive foreign investor interest is, the macro-economic stability that characterized the economy in 2012 “The exchange rate has been very stable; the interest rate has been fairly high but stable and the monetary policy has clearly been the one that favored foreign policy Many investors are happy with the current leadership of the central bank, which has achieved the macro-economic stability that would get more investors interested in the Nigerian market,” says the optimistic CNBC Africa market editor ALL AFRICA BUSINESS LEADERS AWARDS Appreciating Business, Honouring Leaders The All Africa Business Leaders Awards (AABLA) is a recognition and tribute to Captains of Industry across the continent that have made a vast difference to the companies, industries and communities that they serve Following a successful African regional rollout in 2012, AABLA will once again be launching across the continent for 2013 To nominate your leader of choice Go to www.aabla2013.com and complete the online nomination form INVESTMENT GUIDE — CHINA IN AFRICA Professor Mthuli Ncube Why China Can’t Survive Without Africa C hina is an important economic player in Africa Its investments span across many sectors and are not confined to large state-owned companies The Asian giant’s trade with Africa has grown during the past decade reaching $160 billion in 2011, up from $9 billion in 2000 China’s share in Africa’s trade has been phenomenal, rising to 13% from 3% a decade ago China’s appetite for Africa’s natural resources is driven by the country’s rapid growth and expansion in construction, which has made it the largest consumer of industrial metals, namely steel, copper and zinc In 2011, China accounted for nearly 50% of base metals consumption Currently, China imports one third of its oil from Africa and some of its investments are tied to resource extraction Angola has bartered its oil resources for infrastructure development Recent studies have cautioned that this China-driven boom for industrial metals may be nearing its end as the Chinese government targets slower, less commodity-intensive growth China’s 12th Five-Year Plan (2011-2015) focuses on the establishment of a longterm mechanism to boost domestic demand This move away from investment and export-led growth, to a focus on domestic consumption is expected to reduce demand for industrial raw materials in the medium-term Nevertheless, its longterm effect is expected to be different from the current global recession characterized by an episodically declining demand for commodities 88 | FORBES AFRICA february 2013 The Five-Year Plan targets reduced growth in energy consumption by an average of 3-4% per year from 9% in the preceding decade The reduction will be influenced by the projected low target rate of real GDP growth over the next five years—averaging 7% against 9.9% between 1995 and 2010 The reduction in energy consumption will see energy intensity (measured as energy consumption per unit of GDP) decrease by 16% China is the largest energy consumer at 20.3% with a high demand for crude oil, coal and an increasing demand for petroleum products As the economic growth momentum peters off and concerns that the real estate bubble could burst, base metal use in the construction industry will decline Between 2007 and 2011, annual growth in demand for copper was pegged at 15% With the expected growth slowdown, this is set to fall to 6% over the medium-term Growth in demand for steel and zinc will halve to 7.6% and 6% from 14% and 11% respectively, according to Barclays Shrinking demand for base metals has contributed to a fall in prices over the past year The price of copper has fallen by 19% since June 2011 following the announcement of plans for a broad rebalancing Prices of steel and zinc have declined by 14% and 8% yearon-year over the same period The growth in demand for aluminum is projected to fall to 12% over China’s Five-Year Plan from 18% between 2007 and 2011 Aluminum is considered a cheaper substitute for copper in power networks and in auto manufacturing Demand for aluminum may benefit from planned government investment in the expansion of power grids On June 4, China’s finance ministry announced a plan to promote domestic consumption to encourage domestic consumers to pick up the slack coming from slower demand from Europe Although the full extent of the stimulus measure has not been explicitly outlined, it’s believed to include infrastructure spending, subsidies and incentives for vehicles in rural areas and is estimated at RMB1 trillion ($160.4 billion) China’s decision to embark on fresh stimulus measures gave some base metals a boost, albeit temporarily For instance, copper edged up by 1% in early June, while steel and zinc prices remained steady Nevertheless, China is taking a proactive role in strengthening business confidence, albeit, in a possibly targeted manner With the euro zone remaining under dark clouds, commodity markets will look to China for relief There are two possible scenarios regarding China’s slowing growth momentum on Africa’s commoditydependent economies The short- to medium-term implications of lower commodity demand from China dims the outlook on commodity-driven foreign direct investment in Africa, especially in the mining sector Phasing out of investment intensive development models in China could therefore negatively impact sentiment on base metals, irrespective of the short-term tumult caused by the global recession Adding the stimulus measures to the mix blurs the short-term picture AdVoice on how the rebalancing targets will be achieved and their consequences for Africa’s major commodity exporters Major players in the global mining industry are decreasing their capital expenditure plans due to building pressure from shareholders to recoup funds in the form of expanded share buybacks or increased cash dividends In May, BHP Billiton and Rio Tinto—two of the largest mining companies—signaled that they are prepared to reign in on spending by delaying new projects and expansions or by cutting expenditure altogether to match cash-flows Rio Tinto is a major player in the mining sector in South Africa, Namibia, Swaziland, Mozambique and Botswana The company’s Rossing facility in Namibia produces 3% of the world’s uranium and brings in an estimated $2 billion, which helps stem demand for foreign exchange in times of economic fluctuation Similarly, BHP Billiton has major projects in South Africa with estimated operating costs related to worker compensation in excess of $4.8 billion A reduction in investment could have far reaching social consequences in these countries In the long-term, China’s economic outlook will be determined by the shift in growth driving factors, from export intensity to domestic demand According to the International Monetary Fund, longterm growth in China’s per capita income and that of key emerging economies remains at levels supportive of demand for commodities and could strengthen as growth in incomes accelerate further Commodity exporting African countries are bound to feel the pinch of dependence on commodity exports although the net impact will largely depend on the extent to which the gap left by China can be filled quickly by other emerging market economies and the ability of African countries to diversify from commodities BY Altius ALTIUS AND SUSTAINABLE MANAGEMENT OF NATURAL RESOURCES IN EPISODE OF IT’S AFRICA’S TIME Altius is a new generation BEE investment holding company whose core businesses are engaged in the essentials of life: energy, water and food It’s Africa’s Time learns about NuWater, one such subsidiary, which provides water cleaning services to private and public sector customers on a build, own and operate (BOO) basis using its proprietary large-diameter 16” reverse osmosis (RO) technology and self-contained, modular plants Specializing in large capacities of high quality potable water from waste, brackish and sea water, the modular design of NuWater’s plants allow it to respond rapidly to customers’ water-cleaning requirements and at highly competitive prices; leading to rapid growth of the business, particularly in the mining, power and seawater desalination sectors It’s Africa’s Time visits the Anglo Thermal Coal New Vaal Colliery situated on the Free State bank of the South African Vaal River to review the impacts of this water cleaning technology on the mine and its surrounding environment The Cape Town Market is one of the oldest and largest fresh produce markets in South Africa, servicing over 4,000 producers and delivering fresh produce to over 8,000 registered buyers In 2004 the Cape Town Market became another Altius subsidiary when it was privatized by the City of Cape Town This unique and pioneering ownership model was the first to include agents, buyers and producers as its shareholders, and under the management of Altius, the Cape Town Market has been transformed into a highly successful business and major low-cost distribution center for fresh produce It was also the first market in the world to sign service level agreements with market agents, and has a Customer Covenant, which reaffirms its commitment to the producers who supply their fresh produce It’s Africa’s Time visits the Cape Town Market to talk with Dr Anwah Nagia, Executive Chairman of Altius, about sustainable management of natural resources and to learn how the Cape Town Market is contributing towards facilitating ethical best practice in the food commodities sector and how the relationship with its international partner, Noble, contributes to this objective Making a real difference in society is also intrinsic to the ethic and purpose of Altius, and since inception, the company has provided financial and social support to impoverished communities in and around Cape Town The Cape Town Market’s Food on the Table initiative distributes surplus fresh produce through community organizations and NGOs to provide over 45,000 meals per month to disadvantaged communities It’s Africa’s Time airs on CNBC Africa, DStv channel 410, on the third Monday of each month, at 7:30 am february 2013 FORBES AFRICA | 89 FORBES SPORT The KALUSHA BWALYA column Hail The Lionel Messi Of Zambia And The Godfrey Chitalu Of Spain This month, as South Africa hosts the Africa Cup of Nations, Kalusha Bwalya compares the great legends of world football 90 | FORBES AFRICA february 2013 team and friendlies I had the privilege of watching both Chitalu as well as another Zambian superstar Alex Chola, play in Mufulira, in northern Zambia, where I grew up Both of these extraordinary men went on to coach the national team for which I played They were my inspiration Unfortunately, both perished in the tragic air disaster that claimed the lives of all my teammates off the coast of Gabon in 1993 In Zambia, Chitalu was regarded as a legend He is still a household name and his tale will be told wherever there is talk of football He will never be forgotten In all my travels across the globe, if you look at the contribution of the greats: Pele, Diego Maradona, Michel Platini, Johan Cruyff, to mention a few, they were all players of exceptional ability If Chitalu and Chola had been given the same platform, they would have ranked among these greats It is unfortunate that the football market was not as open then as it is today because there is no doubt in my mind that both these Zambian greats would have made it on the European stage Nearly three decades later, the emergence of Lionel Messi has rekindled the same awe that I experienced growing up and watching my heroes in Zambia Today, for a player to score 91 goals in competitive Jasper Juinen/GettyImages/Gallo images G odfrey Chitalu was a prolific striker; a striker who was able to get the ball into the net from any angle He was well built, tall and very quick I remember watching him as a young boy and the whole stadium would erupt each time he touched the ball Chitalu’s nickname was ‘Ucar’—after the famous batteries in Zambia that lived on and on His best attribute was the ability to run with the ball at incredible speed all while beating defenders along the way He was a Zambian hero and his name grew through word of mouth and through live commentary on the radio When a match was on we would crowd around one small radio to listen I remember watching Chitalu play many matches but the one that stands out most in my mind is Zambia versus Uganda at Dag Hammarskjöld Stadium in Ndola The game was tight and it was 2-2, going into extra time Chitalu received the ball almost on the halfway line and beat four defenders to make it 3-2 If that wasn’t enough, he scored another cracker to make it 4-2 at the final whistle He scored 107 goals in the 1972 season, during the games he played in the league, cup competitions, national AdVoice AFCON 2013 To get back to African soil, I am sure you have been feeling the excitement around the 2013 Africa Cup of Nations being hosted by South Africa We, Zambians, moved into our camp on December 26 and have been together ever since During this time, we have been able to undergo intensive physical training, strategic technical preparation and enhance our mental acuteness The spirit in the camp is very high, thanks to the mentorship of a highly capable technical team We will give it our best and know that the more we sweat in training, the less we will bleed in battle Zambia will feature 19 of its 23 players, who were champions in Gabon and Equatorial Guinea This will give us continuity, consistency and experience We are going into this tournament fully prepared, knowing that history doesn’t make you a champion—effort and humility does matches in a year is almost impossible Let us give credit where credit is due This young man has the ability to win matches, to draw crowds and create something out of the ordinary With some easy, quick and precise moves, he is able to turn an impossible situation into one which looks easy It could be said that Messi could be the perfect player, yet one still has to give credit to Barcelona, a team brimming with talent and skill Messi is exemplary in that his dedication, discipline and hunger to win never subsides; even with all the tackles from defenders trying to stop him in his wake, he is rarely injured and never feigns injury A true fairplay player, if ever there was one I have often been asked to compare Chitalu and Messi In response, I state that both players were highly skilled and prolific in their goal scoring abilities I do, however, propose that perhaps records for goal scoring need to be tallied within their respective continents, so that you have a top goal scorer from each continent, this because every continent has different levels of competition BY OLYMPIA CAPITAL HOLDINGS LTD OLYMPIA’S GROWTH STRENGTHENS ITS POSITION IN AFRICA Olympia Capital is a regional investment holdings company that has been listed on the Nairobi Stock Exchange since 1976, initially as Dunlop Kenya Limited (DKL) The group has its subsidiaries operating across Africa, specifically in Kenya, Botswana and South Africa In 1989, Dunlop (UK) was acquired by BTR Worldwide, with the latter gaining a controlling stake in DKL However in 1996, BTR decided to sell its interest in Kenya to local investors In 1999, Dunlop Industries Ltd (DIL) was registered as a fullyowned subsidiary of DKL to continue with the business of the parent company and allow DKL to concentrate on investments In 2004, DKL changed its name from Dunlop Kenya Ltd to Olympia Capital Holdings Ltd Olympia’s main investments are in companies dealing in the manufacture and sale of products used in the construction industry such as floor tiles, adhesives, U-PVC windows and doorframes, cleaning chemicals as well as fire equipment, water pumps and real estate The group had a turnover of Ksh774 million ($9.1 million) in FY-2011, which was a growth of 16% over FY-2010 PBT in FY-2012 nearly doubled from FY-2011 and this was driven by strong performance from our group’s Botswana subsidiary and the existing real estate investments by the group Our FY-2012 first half year performance showed growth of 6% over same period for the previous year and we expect even better performance in the second half of this financial year, which ends in February 2013 Our subsidiaries in Kenya are Mather+Platt (K) Ltd—a fire systems and water pumps provider; Dunlop Industries Ltd dealing in vinyl floor tiles, adhesives and glue; and various real estate investments within the country such as Avon Centre and Heri Heights Ltd In Botswana we have another subsidiary, Kalahari Floor Tiles, while in South Africa we have Tiespro (171) Trading Pty Ltd The group plans to increase its presence in Southern and Eastern Africa in FY-2013 to tap into growing opportunities within the construction industry in these regions www.ochl.co.ke Addis Ababa Road Off Enterprise Road Industrial Area, Nairobi Fax: +254 020 3517138 • Tel: +254 020 552681/2 february 2013 FORBES AFRICA | 91 FORBES forbes sport afcon Killer Passes And Presidential Power In The Glory Of ‘96 As the Africa Cup of Nations plays out, FORBES AFRICA looks back on a fairy tale that saw champions born on an emotional, rainy afternoon in Johannesburg By Chris Bishop I t was one of those rare moments of wonder Goldenhaired Neil Tovey lifted the trophy over his head and screamed victory at the top of his lungs to the roar of 80,000 people To his left, President Nelson Mandela, in a South African football jersey, punched the air in jubilation Legend has it that Mandela’s bodyguards had to persuade a shop owner, near the stadium, to open up so they could get the jersey just before kick off For Mandela, this was the second sporting, nation-building triumph inside two years The year before, the head of state of a divided South Africa helped get black people to cheer the country’s rugby team as they won the World Cup on home soil This time, he enticed white people to get behind the largely black football team; no mean feat back in 1995 and 1996 Journalist Nazeem Dramat, then working for the national broadcaster, was also breaking ground by reporting the football on national radio in Afrikaans—erstwhile, the language of rugby “Every game was just one big party, it was just fantastic to be in South Africa two years into democracy with all the good will of a new nation,” says Dramat 92 | FORBES AFRICA february 2013 The team had done their bit for the new nation on the field by beating Tunisia 2-0 in the final, amid the raindrops, at the FNB Stadium in Johannesburg on February 3, 1996 It was a win that catapulted South African football, readmitted into international sport just four years “We celebrated through the night and for the whole week!” before, onto the world stage In the years that followed, more money flowed into the game and many of the country’s players were snapped up by European clubs Doctor Khumalo laid on two goals for Mark Williams, who scored four goals in the tournament The top scorer in 1996 was FORBES AFRICA columnist, Kalusha Bwalya, who netted five times for semi-finalists Zambia “In 1996, the crowd was fantastic, the noise was incredible South Africa was run away favorites to win Most of the other big teams had been knocked out by then The final whistle released a massive, euphoric celebration from the crowd,” says veteran football correspondent, Mark Gleeson, who reported on the game Also at the ground was Humbulani Nematswerani, a young medical doctor who was to become the sports physician to Bafana Bafana between 2007 and 2013 “I will never forget the killer passes from Doctor Khumalo to set up Mark Williams; it was out of this world We celebrated through the night and for the whole week!” he says Many fans of Bafana Bafana are far from optimistic about the class of 2013 It is a sign of the times that in the lead up to the tournament, newspapers were talking about a South African win as a shock “I think the interest has dwindled a bit There was a time when you never missed a match and the streets were empty when Bafana Bafana was playing,” says Nematswerani “The current Bafana Bafana squad has a shot if they get enough momentum going Any side with a decent group of players can,” says Gleeson “My heart says we will what we did in 1996, my head is not so sure,” says Dramat JOHN MOSHOEU: Phil Cole/Allsport/Getty Images/Gallo Images; DOCTOR KHUMALO: Iga Motylska; ANDRE ARENDSE: Phil Cole/Allsport/Getty Images/Gallo Images; NEIL TOVEY: Phil Cole/Allsport/Getty Images/Gallo Images; CLIVE BARKER: Bob Thomas/Getty Images/ Gallo Images; EDWARD MOTALE: Iga Motylska; SHAUN BARTLETT: Popperfoto/Getty Images/Gallo Images; ZANE MOOSA: Iga Motylska Source: Kickoff, National Football Teams, Soccer Laduma ZANE MOOSA Moosa spent most of his career at Mamelodi Sundowns FC and made five appearances for Bafana Bafana between 1992 and 1996 He is an analyst on SuperSport’s Super Diski, a program dedicated to the Premier Soccer League (PSL) in South Africa JOHN MOSHOEU John ‘Shoes’ Moshoeu is involved with the Castle Lager Superstars campaign Moshoeu spent most of his career at Kaizer Chiefs FC and at various Turkish teams DOCTOR KHUMALO Now the assistant coach at Kaizer Chiefs FC, Doctor Khumalo spent most of his career at the club In 1992, he made five appearances for South Africa and around 37 for Kaizer Chiefs; he earned the SA Footballer of the Year award in the same year THE 1996 AFCON TEAM WHERE ARE THEY NOW? SHAUN BARTLETT Bartlett is the assistant coach at Golden Arrows FC He began his career with four seasons at Cape Town Spurs, now known as Ajax Cape Town FC, and went on to play in the States and England He is a Supersport presenter CLIVE BARKER Barker was appointed the head coach at Bidvest Wits FC in January His previous coaching credits include Santos FC and Amazulu FC, where he was also the director of coaching and development ANDRE ARENDSE Arendse has been the goalkeeping coach at Bidvest Wits FC since July He played for Mamelodi Sundowns FC and Supersport United FC in South Africa as well as Fulham FC in England He is a Supersport presenter NEIL TOVEY Tovey is involved in an initiative aimed at discovering young talent and hopeful Bafana Bafana players, called the Castle Lager Superstars EDWARD MOTALE Motale coaches soccer at Tshwane South College in Pretoria, South Africa He is also a member of Sonke Gender Justice Network, which raises awareness on gender-based violence and HIV/ AIDS february 2013 FORBES AFRICA | 93 FORBES forbes sport Cricket The Brash Battler And The Quiet Man Hashim Amla and Kevin Pietersen, two cricketers from South Africa’s KwaZulu-Natal province, are making world headlines and are as different as chalk and cheese T wo years, eight months, four days and 78.2 kilometers separates Kevin Pietersen from Hashim Amla, in age and birthplace In life and cricket they are worlds apart Two young men from the same part of South Africa, KwaZulu-Natal, have turned out as differently as the two places they are from: Pietermaritzburg and Durban On the face of it, the similarities are obvious between the towns, as they are with the men They are professional sportsmen, cricketers, batsmen, who operate in crucial positions at the top of the order; products of top South African schools and performers in a sport that is thriving Look deeper and you will realize that Pietermaritzburg has no ocean and the gap between the two is as wide as the Indian Ocean That calm, vast mass of blue represents the oceans between Pietersen and Amla The former has made as many enemies as the latter has made friends Pietersen has played for four domestic teams and has had altercations at every one Amla has played peacefully for one, the same team where Pietersen started In 2000, Pietersen used politics to justify why he was not getting picked regularly for KwaZulu-Natal Pietersen blamed the quota system for him being overlooked In fact, it was that he was nothing more than a mediocre off spinner who, although dedicated to fitness and hard work, was hardly deserving of a regular place Pietersen packed up and flew to England where he played for Nottinghamshire Three years later, he asked to be released from his contract, blaming the pitch at Trent Bridge for his lack of runs A move to Hampshire followed, until he decided he could no longer live a small-town life and wanted to live to London In between, Pietersen qualified for England and blended self-assurance with skill, 94 | FORBES AFRICA FebrUARY 2013 to emerge as one of their best batsmen When the explosive Pietersen takes to the crease, cricket fans around the world stop to watch While Pietersen was battling the world, Amla was completing school at the alma mater of cricket legends Barry Richards and Lance Klusener, Durban Boys’ High Apartheid South Africa caused Amla and his older brother, Ahmed, to be schooled seperately Ahmed is four years older and had to attend a school for Indian pupils, as were the rules of the apartheid days By the time Hashim reached high school, the doors of opportunity had opened and he was able to get specialized cricketing coaching, once the preserve of the privileged Amla’s talent, despite a dodgy back lift, means he was selected for South Africa’s under-19 squad as soon as he was old enough He went on to captain them as a reluctant leader As luck would have it, on the same day Amla made his Test debut for South Africa, Pietersen made his One Day International (ODI) debut for England It was November 28, 2004 Amla was scratchy against India and his technique appeared flawed He was dropped after three Tests and it took him almost two years to make his way back into the South African team Pietersen began batting for England in Zimbabwe, in a fairly low key fashion, but blossomed for his adopted country He scored three centuries for England on the tour and showed that brash bullishness could breed success When Pietersen and Amla met eight years later, both their fortunes had changed The former had suffered an unhappy stint as England captain, which ended almost as quickly as it began, but had established himself as a player who was the backbone of the English batting line-up Hashim Amla: Pal Pillai/Getty Images/Gallo Images; Kevin Pietersen: Kunal Patil/Hindustan Times via Getty Images/Gallo Images By Firdose Moonda Hashim Amla Aggressive, audacious and arrogant: Pietersen’s game is as dramatic as summer lightening Multi-million dollar contracts, in the Indian Premier League, led Pietersen to a lucrative football-style club-over-country life He lived the life and moved to fashionable Chelsea, where he hangs out with Frank Lampard By contrast, Amla took longer to build to a crescendo First, he mastered Test cricket, culminating in a double century in India Then, he topped the rankings in ODIs and slowly made the transition to twenty-overs, something he is still working on He was elevated to vice-captain of the limited-overs sides, under AB de Villiers, and skippered in de Villiers’ absence His back lift became less pronounced, but only just, as he made what he had work for him Amla’s personal life was a world away from Chelsea and remains a secret Amla married his schoolteacher wife, Summaya, and had their first child, a son, in January 2011, but to date, no one in the media has seen either The only hint that Amla has a life outside cricket was when he promoted baby shoes and a cold drink for an online company Come England in July, the two men from KwaZulu-Natal faced off in a battle to be the best team in the world Amla struck the first blow by setting the South African record for the most runs in an innings with 311 at the Oval Pietersen counter attacked 149 at Leeds to help England draw against the odds Then Pietersen, to use a cricketing metaphor, hit wicket He sent text messages to members of the South Kevin Pietersen African squad, deriding his teammates It was disapproved of by the England and Wales Cricket Board and they dropped him from the final, must-win match of the series In that match, Amla scored his second century of the series and South Africa were crowned the number one cricket team “I’m not even the second best batsman in my team,” says Amla Amla dedicated the hundred to the team statistician, Prasanna Agoram, who had converted to Islam It was Amla’s way of reiterating his commitment to his religion, something he holds so dear he refused to wear the sponsors’ logo because it was a beer brand Gestures a world away from the bling of Pietersen and Chelsea; gestures that were pure Hashim Amla FebrUARY 2013 FORBES AFRICA | 95 FORBES THIS IS AFRICA Made In China M andarin will soon become the language of business The Chinese are increasing their footprint in Africa Not only are they investing on the continent, they are bringing their expertise and building infrastructure faster than the West “And China is still a competitor for Africa’s nascent intra-Africa trade and will remain one until Africa develops manufacturing nodes.” Standard Bank researcher, Jeremy Stevens "I think it's very much a foreign invasion When Chinese work groups come in, they bring their own workers, it's a very insular way of investing, but for me I find it preferable to a Bob Geldof charity case coming in and saying 'Oh shame, the poor Africans can't any business' This is a pure business deal.” Dion Chang, one of Africa’s leading trend analyst "We are a country that is in the development and we value the investment of China to our country." Rwandan finance minister, John Rwangombwa “I don’t agree that China’s investment in Africa is something to with ‘new colonialism’ or ‘pillage of natural resources’ It is more economic rather than political.” Keith Jefferis, former deputy governor of the Bank of Botswana “China is now the largest trading partner to Africa and so I think one of the questions is how we become a better trading partner.” Joshua Eisenman, a senior fellow in China studies at the American Foreign Policy Council "China brings investment to Africa, and has successful experience in developing economy, so China-Africa cooperation is mutually beneficial." Leonce Ndikumana, director of the African Development Bank’s development and research department 96 | FORBES AFRICA february 2013 “The nonprescriptive element in the China-Africa relations offers an opportunity for Africans to build a positive image about the continent; to restore confidence in their abilities to tackle the continent’s challenges and to scale up a cultural revival.” James Shikwati, director of the Inter-Region Economic Network “Though the scale of Africa’s market is not yet large, the potential is huge.” Zhang Jianping, director of the International Cooperation Office of the National Development and Reform Commission’s Foreign Economic Research Institute Relationships rule our world and the strongest ones are built on trust trust is earned with a good track record achieved by sustainable and innovative solutions solutions which satisfy our clients’ desire are only achieved by the bravest of the brave signifying the Left Handshake! DUNN LOREN MERRIFIELD Bespoke financing Discerning clientele INVESTMENT BANKING • SECURITIES TRADING • SECURITIES BROKERAGE • ALTERNATIVE INVESTMENTS www.DunnLorenMerrifield.com LAGOS • LONDON • NEW YORK ... Toweel Write to us at letters@forbesafrica.com www.facebook.com /forbes. africa 12 | FORBES AFRICA FEBRUARY 2013 www.twitter.com/forbesafrica www.youtube.com/forbesafrica Zolani Marali: photo by... It’s Africa? ??s Time airs on CNBC Africa, DStv channel 410, on the third Monday of each month, at 7:30 am february 2013 FORBES AFRICA | 47 RESOURCES SUPPLEMENT / Mozambique 48 | FORBES AFRICA february. .. submit their views on Africa to the leading journal, Development, for a special Africafocused edition, Africa Strategies for Transformation february 2013 FORBES AFRICA | 37 FORBES obituary Arthur