Four South African companies taking on the world
Four South African companies feature in Boston Consulting Group’s list of 100 “global challengers”.
Four South African companies feature in Boston Consulting Group’s list of 100 “global challengers”. To be selected, they need to be of a certain size, with credible aspirations to build truly global footprints. Global challengers are also growing faster than their peers. How we made it in Africa takes a brief look at each one of these South African companies that have a real shot at becoming leaders in their industries. Aspen
Aspen Holdings is Africa’s largest pharmaceutical manufacturer. It supplies branded and generic pharmaceuticals in more than 150 countries across the world, as well as consumer and nutritional products in selected territories.
Aspen has 18 pharmaceutical manufacturing sites on six continents. Four are located in South Africa, three in Australia, and one in each of Germany, Tanzania, Kenya, Brazil and Mexico.
In 2003 Aspen launched the first antiretroviral (ARV) drug developed and manufactured in Africa. ARVs slow down the progression of HIV/Aids. Today Aspen is regarded as one of the leading global players in generic ARVs.
The company was started by current chief executive Stephen Saad in a suburban home in 1997, when he was 33. Saad told BizNews in an interview that he doubts if there is a South African company with a greater global footprint than Aspen.
Sasol
Founded in 1950, Sasol has become a global player in the energy and chemical industries. In fact some have even accused it of overlooking South Africa in favour of international projects.
Sasol’s activities include converting coal into liquid fuels, crude oil refining, the supply of pipeline gas, and the manufacturing of chemicals. The company is listed on both the Johannesburg and New York stock exchanges.
While about 75% of Sasol’s profits still come from South Africa, its home market is likely to contribute less to its bottom line in the coming years, according to analyst David Shapiro.
Last month the company unveiled Mozambique’s first permanent large scale gas-to-power plant. The project is a partnership between the Mozambican state power utility, Electridade de Mozambique (51%) and Sasol (49%). In the US, Sasol is also mulling the construction of a gas-to-liquids plant in Louisiana, one of the biggest foreign investments ever in the state.
Interestingly, Sasol has a town in South Africa named after itself. Sasolburg was established in the early 1950s in order to provide housing and facilities for Sasol employees working on an oil-from-coal pilot plant. After the town’s establishment, Sasolburg’s vehicle licence plates were distinctively marked with the letters OIL. To this day, the company remains a major employer in Sasolburg.
Bidvest
Bidvest was co-founded by current chief executive Brian Joffe. He started his entrepreneurial career in 1978 when he bought a stake in a pet food manufacturing business. He later acquired full ownership of the business and sold it to a major industrial group.
Bidvest was launched in 1988 with the idea to raise capital to acquire, fix and develop underperforming services companies. Today the company has over 140,000 employees and its reach extends into every sector of the South African economy – households, commerce, government, industry and mining. Its main businesses include food, freight management, automotive retailing, industrial and commercial products. Bidvest has expanded internationally and about one-third of its trading profits are generated from foreign operations.
Joffe recently enhanced his reputation as a master dealmaker by acquiring a strategic stake in the pharmaceutical company Adcock Ingram, a business he plans to "reinvigorate".
MTN
Another global challenger that will be familiar to most Africans is mobile telecommunications group MTN. It operates in 21 countries across Africa and the Middle East and has recently crossed the 200m subscribers mark. It has a reputation for doing business in countries perceived to be tough business environments, such as Syria and Afghanistan.
One of MTN’s biggest international success stories is Nigeria, where it is currently the market leader with over 55m subscribers. In 2001, when MTN bought one of the three mobile licences on offer in Nigeria, the country was just emerging from decades of military rule and failed attempts at democracy. “There were positives and negatives at the start in Nigeria, but we were persistent and persevered, mainly due to a lot of resolve by senior management, who were committed to a longer-term vision,” said Andrew Bing, former chief financial officer of MTN Nigeria.
MTN is currently diversifying its business beyond voice revenue, which is under continuing competitive pressure. Data already accounts for close to 20% of the group's revenue. MTN recently bought a stake in Africa Internet Holding, which owns a number of ecommerce websites across the continent. It is also focusing on its MTN mobile money platform and broader financial services offerings.