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Home Business- Africa

Four South African entrepreneurs to watch

by Theinsightpost
December 28, 2024
in Business- Africa
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Four South African entrepreneurs to watch

Nhlanhla Dlamini, the founder and CEO of Maneli Pets

From pet food and chilli sauces to clothing and plastic pipes, these four South African entrepreneurs interviewed by How we made it in Africa in 2024 are making their mark.

1. South African builds a pet food company that exports globally

The global pet food industry is estimated to be worth over $125 billion. Tapping into this vast opportunity is South African-born Nhlanhla Dlamini, the founder and CEO of Maneli Pets. From its factory in Johannesburg, the company produces a range of innovative pet treats – including from unique protein sources such as ostrich, venison, crocodile, and fish – for both the domestic and international markets.

Maneli Pets’ first customer was a buyer in the United States. According to Dlamini, the company’s unique proteins allow international brands to stand out from competitors. “It is ultimately a game of competing for consumer eyeballs and anywhere that you can stand out to be a little bit different to everyone else on the market, that gives you an edge.” The cost advantage of sourcing from South Africa was another benefit.

Dlamini deliberately focused on pet treats rather than general pet food because customers tend to have less brand loyalty when it comes to treats. “It’s similar to a chocolate aisle … when you’re about to check out at a store. If you see a new chocolate there or a new brand of nuts, you’re likely to try it if the price is right and if it’s something that you like. But when it comes to food, you probably would buy the same type of bread or the same type of meat for a very long time. And if you saw a wildly new entrant in that category, you’d be more reluctant to experiment with something new. The same is true for treats. It’s an impulse purchase, it’s a reward for pets. And so a lot of pet owners are willing to experiment and try out new treats, which is important for us as a new entrant in a market that’s been around for over 50 years,” Dlamini explains.

Watch our full interview with Nhlanhla Dlamini: South African CEO competing in multi-billion-dollar pet food industry

2. American deal provides lifeline for South African food company

In 2010, in the aftermath of the global economic crisis of 2007-09, South African food company Fynbos Fine Foods found itself grappling with declining demand. The crisis severely impacted consumer spending on discretionary items, and the company’s range of gourmet hot sauces and food flavourings was no exception. It nearly led to the collapse of the business. In response, Fynbos had to make tough decisions such as asking its staff to work reduced hours, avoiding layoffs.

During this challenging time, Julian Abramson, the company’s co-founder, attended the SIAL trade show in Paris – one of the world’s largest food industry events – in hopes of securing new clients. It was there that a representative from a major American retail chain discovered Fynbos’s chef salt and habanero sauce. Remarkably, before Julian even returned to South Africa from the show, Fynbos had received a substantial private label order for approximately 70,000 units from the buyer.

Rozelle Abramson, who took over the company’s reins following her husband’s retirement, recalls the deal provided Fynbos with a lifeline.

The company was then faced with the daunting task of fulfilling such a large order. Sourcing enough glass packaging was a particular challenge. Previously, Fynbos had been accustomed to picking up boxes of glass from its supplier; now, the demand had escalated to pallets. It struggled to persuade the glass supplier to provide the necessary quantities and to lower its prices for such a large order. After extensive negotiation, an agreement was reached. However, when the pallets of glass finally arrived, the Fynbos team had to manually unpack them, as the company, at that stage, could not afford the luxury of a forklift.

“Sometimes you just need to take a fat chance and not think, ‘Oh my god, how am I going to produce this?’ says Rozelle, reflecting on that time.

Today, with over 100 permanent employees, Fynbos continues to supply the American retailer and various other clients globally and within South Africa. Annually, the company produces about 4.4 million units of hot sauces, pestos, chef salts, and jams, with exports comprising roughly 70% of its production. Fynbos has capitalised on the global trend toward healthier foods by offering products free from preservatives, colourants, and additives.

Read our full interview with Rozelle Abramson: How a South African chilli sauce company broke into the American market

3. From student apparel to over 20 stores: Freedom of Movement’s growth story

Freedom of Movement (FOM) is a South African clothing and accessories brand co-founded by the Boezaart brothers. With South African rugby captain Siya Kolisi as a minority shareholder, the company has expanded to over 20 stores and has a growing international presence.

The origins of FOM trace back to when Roal Boezaart was a student at Stellenbosch University, situated outside Cape Town. In 2011, Roal began making hoodies and t-shirts for Stellenbosch’s student residences, leading to the formation of Clockwork Clothing. His goal was to offer more attractive apparel for university and school students. The following year, he was tasked with creating merchandise for the reunion of his university residence, Wilgenhof. He found someone who could make a leather satchel with Wilgenhof’s logo embossed on it, which was sold to attendees of the reunion.

Meanwhile, his brother Léan Boezaart was completing his chartered accountant articles at Deloitte in Cape Town. Upon qualifying at the end of 2011, he opted to pursue a career in golf and joined the Sunshine Tour, a local professional golf circuit.

In late 2012, Roal invited Léan to join the business. He accepted. Initially, they continued producing apparel for educational institutions but soon realised this direction did not align with their vision. Thus, the duo redefined their company’s mission: to establish a proudly South African lifestyle brand. They decided to start with leather products and operated from a small room of about 10m2 in Stellenbosch. “We bought a leather machine, got a craftsman called Benjamin from the Eastern Cape, got him to move his whole family to Stellenbosch. And we sat him down and said, ‘Right, let’s make a leather bag’,” Léan says.

Their first item, a hand-stitched and hand-dyed briefcase proved too labour-intensive. Recognising this, they pivoted to producing two backpack models, which were quicker to make and more appealing to students. The backpacks quickly became popular, leading to a substantial waiting list. To meet this growing demand, the company expanded its operations, hiring additional staff and relocating to a larger facility in Stellenbosch from where they could produce around 20 bags daily.

For the first two years, Léan still played golf and took on part-time consulting work to pay the bills. He eventually decided to focus entirely on FOM. “I didn’t play good enough golf to make a lot of money … We had Freedom of Movement slowly but surely getting into a bit of a rhythm where we could turn this into something big. So in 2014, [I] basically stopped the golf thing … and was selling leather bags as a [qualified] chartered accountant before I knew it.”

FOM was funded completely organically, with no loans or external funding raised. “[We] started the business with R80,000 (about US$4,250) of our own money, and then grew it from there,” Léan notes.

Read our full interview with Léan Boezaart: Building a South African clothing business, with some help from a rugby captain

4. The businessman who saw potential in plastic pipes

After making a three times return on his previous venture, South African entrepreneur Kgomotso Lekola spotted an opportunity in manufacturing heavy-duty plastic pipes for industries such as mining, agriculture, and construction. His company, BT Industrial Group, also offers engineering consulting services and ventured into medical product manufacturing a few years ago.

BT Industrial Group has its roots in a Johannesburg-based business called Africa Weather, in which Lekola acquired a stake in 2013. Africa Weather provides advanced forecasts to clients, including mining and agricultural firms, helping them prepare for adverse weather events. Lekola financed the acquisition through a bank loan, and during his time there, the company grew its operations across Africa and into Australia. The business also introduced a product that sent SMS alerts to insurance clients, warning them of upcoming severe weather to protect their assets.

About four years ago, Lekola sold his remaining stake in the company, making three times his initial investment.

Through his involvement with Africa Weather, Lekola became familiar with the mining industry, one of the company’s key target sectors. He identified a business opportunity in providing engineering consulting services to mines. BT Industrial happened to get involved in water management projects for mines, a critical aspect of the industry – water needs to be pumped out of mines, and it is also needed for certain processing activities.

But Lekola encountered challenges with suppliers of high-density polyethylene (HDPE) plastic pipes, essential for water conveyance in mining. Both the overall quality of the pipes and the professionalism of the suppliers were significant issues.

Some of Lekola’s team members suggested that BT Industrial should begin manufacturing its own HDPE pipes. “I was like, ‘No, you’re mad,’” he remembers. “But then they persuaded me.”

He and the head of engineering flew to China to visit several pipe manufacturing machine suppliers. After finding the right partners, the company purchased the equipment and set up a small factory on the outskirts of Johannesburg, again financed partly through bank loans.

Today, BT Industrial supplies pipes to a range of industries, including agriculture, bulk water infrastructure, and construction.

Watch our full interview with Kgomotso Lekola: The South African entrepreneur who found opportunity in plastic pipes

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