Advertorial

The majority of JSE-listed companies are multimillion-rand entities with significant geographic footprints and multiple suppliers and clients, which results in a diverse set of risks all along the value chain. These risks need to be quantified and transferred to an insurer for a monthly or annual premium. As part of ensuring the overall health and continuity of a public company, risk management is a requirement, especially in light of economic volatility, as well as the increasing frequency and severity of climate change and ongoing cyberthreats. To follow are essential insights and risk-specific insurance options.

‘Like a change in the weather, business disruption is inevitable,’ says Quinten Matthew, executive head for specialist business at Santam. ‘Protecting fixed, moveable and people assets is critical. We’ve seen dramatic increases in natural catastrophes recently and from our experience, businesses that use insurance to mitigate climate change risks are more likely to survive disruption.’

Santam’s interim results for the six months to June 2017 showed an 8% growth in gross written premiums for specialist business. In the period under review, the underwriting performance of the commercial and corporate property classes came under pressure after an increase in large corporate property claims – tough economic times often filter through to claims as maintenance and safety standards are compromised. ‘For the rest of the year, we will be expanding capacity in the areas of risk management and surveying, with our under-writing and risk management actions focused on the commercial and corporate property classes of business,’ according to Matthew.

Santam will grow capacity in risk management for commercial and corporate property businesses

In addition to business interruption insurance, cyber insurance is also becoming a necessity for just about any business. The ubiquitous nature of technology has catalysed a correlating rise in exposure to online threats. During 2017, numerous organisations – from governments to NGOs to giant multinationals – have been targeted (and infiltrated) by hackers.

In September, Equifax (a credit rating agency based in the US) was the target of a cyberattack that resulted in the credit records and personal information of almost half of America’s population being exposed – an indictment of the company’s online security controls.

Regardless of the industry, it seems that all companies now face cyber risks. Cisco’s mid-year Cyber Security Report, which included a survey of nearly 3 000 security leaders across 13 countries, revealed that even in the most responsive industries (such as finance and healthcare), businesses are mitigating less than 50% of cyberattacks they know are legitimate.

Santam offers bespoke insurance solutions based on comprehensive risk analyses

Of the cyberthreats investigated within the public sector, 32% were identified as legitimate, but only 47% of these were eventually remediated. Among the retailers interviewed, 32% said they lost revenue due to attacks in the past year, with about a quarter losing customers or business opportunities.

With a multitude of specialist insurance options available, Matthew says it’s about determining which offering strategically aligns with a business’ working risk model. He advises all JSE-listed entities to obtain property and casualty cover as protection against the cost of physical loss or damage to buildings. Additionally, he suggests third-party liability cover and the advance loss of profit coverage to dispel the effect of business interruptions. Being adequately protected is vital for companies looking to expand across Africa, as each country presents a different set of risks.

Santam has an expansive footprint throughout the continent and engages with companies and projects across all sectors. Following the acquisition of RMB Structured Insurance (now called Santam Structured Insurance), and coupled with its vast footprint and tailored skills, the company has incorporated specialist regulation-compliant expertise to cater for an extensive range of risk mitigation and transfer capabilities.

The pricing of specialist insurance to cover JSE-listed entities is subject to the comprehensiveness of the risk analysis conducted, which can require political and social risk-mapping assessments depending on a company’s scope and scale, as well as its risk culture and appetite.

‘Business resiliency starts with effective risk management, and specialist insurance is the key to long-term survival,’ says Matthew. According to the 2017 PwC Risk in Review survey – a global study of corporate officers across 30 industries and spanning more than 80 countries – aligning risk management with strategy at the point of decision-making is critical in enabling organisations to react faster to risks and disruptions. Decision-makers are advised to embed risk management into both strategic planning and tactical execution.

Building 2, 11 Alice Lane,
Sandton, 2196
Tel: +27 (0)11 912 8000
www.santam.co.za

Expertise in risk management

With nearly 100 years of experience, Santam has made it their business to understand what is important to clients
9 Nov, 2017

On any given day, more than 8 billion mobile devices are powering up and connecting people around the world. No matter where or who you are, your mobile phone is a lifeline – keeping you in touch with work, family, information and entertainment on the go.

However, all that talking, texting, searching and posting takes power. It’s also not always easy to find a wall plug to charge up. And in excess of 3 billion people in the world either cannot afford electricity or simply can’t access it via the traditional grid.

The robust SunStream portable solar panel provides reliable energy for charging mobile phones in all environments

Even if you are lucky enough to have abundant access to the grid, chances are high that you have had at least one instance where your phone battery died when you needed it most. Indeed, without a source of dependable power, the mobile revolution will fizzle out rather quickly.

Enter US-headquartered SunStream Energy, a fledgling newcomer determined to provide everyone under the sun with the highest-quality solar charging solution for mobile phones, batteries and other devices.

BORN IN AFRICA. MADE IN THE US
Company founder John Anderson made it his life’s work to develop a reliable solar solution after a pivotal trip to Uganda in 2011. While there, he witnessed energy poverty first-hand and realised the potential of mobile connectivity to create upward mobility.

With a background in solar module manufacturing, Anderson was asked to help people in Uganda with a solar-powered cooking device. He successfully developed a current strong enough to boil water using solar PV instead of solar heat, yet he was surprised by the response of the villagers when they asked him if the cooking system would be able to charge their mobile phones. They explained that having a connected phone was of the utmost importance as it enabled people to communicate with family, call for help if needed and conduct business. Initially, Anderson was sceptical – weren’t there products on the market already that fulfilled this need? The villagers assured him there wasn’t anything available that was reliable or durable enough to work consistently. So Anderson went back to his two-car garage in Colorado and focused on making a small, portable solar panel that would work for the larger market.

SunStream products are waterproof, drop-proof and charge many devices as fast as a wall plug

Anderson says that it was a wild ride in the beginning, but they kept building and learned from every failure.

Eventually, they were ticking boxes on functionality. As fast as a wall plug? Check. Works underwater? Check. Fits in a pocket? Check.

On 6 March 2013, Anderson charged a smartphone with a SunStream panel. Fast-forward to today, where the products – made in the US – are on shelves across Africa.

BUILT TO LAST
SunStream arguably makes the most durable and reliable solar chargers on the market. Their products are inspired by an enabling mission – to offer people a way to stay safe and connected everywhere, every day.

The result is revolutionary solar technology that streams electricity directly into devices, even in the harshest outdoor conditions. SunStream panels are portable, drop-proof, waterproof, and they’re able to charge many devices as fast as a wall plug.

A NEW KIND OF SOLAR
Other solar products require internal electronics, such as a chipset, circuit board, inverter or other charge controller to create energy. This results in an automatic loss of usable energy. SunStream panels are different.

With chipset-free charging, SunStream’s technology converts sunlight into electricity instantaneously at a 99% throughput rate, making it the most efficient and reliable portable solar panel on the market.

It’s also the first technology in the world to combine two extremely difficult international compliance standards into one unit. The technology is both USB 2.0 DCP-compliant and has a UL 1703 PV module certification.

The company was granted a US Patent and Trademark Office utility patent for the core power methodology innovation in July 2015, and has been given 47 design patents throughout the world.

Block B, Agri-Hub, 4,
77 Witherite Road, Pretoria,
0184, South Africa
Tel: +27 (0)12 007 1500
[email protected]
www.sunstreamenergy.com

Power up

Innovative SunStream Energy is powering mobile connectivity with breakthrough solar technology
9 Nov, 2017

Founded in 2000, the J&J Group has grown using a multifaceted growth model, which has included start-up joint ventures, partnerships, and acquisitions of both growth and mature companies.

The primary goal of the J&J Group is to identify, structure and invest in businesses to the mutual benefit of all stakeholders involved. The group remains steadfast in its pursuit of growing its business, community and government relationships to continue delivering value-creating enterprises.

Relationships with strategic partners have been a key element in guiding its growth, allowing the group to build a variety of mutually beneficial partnerships and working relationships with companies such as Old Mutual, Rand Merchant Bank, AREVA, Verizon, the Tata Group, Murray & Roberts (VRESAP, UCW), Dr Reddy’s Laboratories, Bombardier, Macquarie Bank and SolaireDirect.

The J&J Group has been an integral part of numerous development projects

SECTORS OF INVOLVEMENT
Transportation
The J&J Group has a significant stake in the Gautrain Rapid Rail Link (Gautrain), further solidifying its commitment to growing the infrastructure portfolio.

Gautrain is a private-public partnership (PPP) that provides a fast passenger train service connecting South Africa’s financial capital, Johannesburg with Pretoria (the administrative capital, Tshwane) and OR Tambo International Airport.

Energy
An important part of the vision of the group is to support ongoing initiatives that contribute to the development of energy supply and resources in both South Africa and the rest of Africa.

The J&J Group holds ownership control of Util Labs – an energy technology company that has developed a smart-grid solution involving end-to-end, real-time, bi-directional measurement monitoring and control throughout the low-voltage network.

Financial services
The J&J Group has built a presence in financial services through its flagship holding company, Macquarie First South.

In August 2006, First South Securities concluded a merger with the corporate advisory arm of Macquarie Bank Africa, the global, Australia-based bank, thereby creating Macquarie First South.

Macquarie First South provides a range of financial services, including a stock-broking service that covers a full research team and a trading and settlement service to institutions, as well as investment banking advisory services. In the latter part of 2015, the J&J Group exited the partnership.

Healthcare
The J&J Group entered the healthcare sector in 2004 with the establishment of Venture-pharm, which developed a joint venture partnership with Dr Reddy’s Laboratories, trading in generic medicines. The group exited this investment in 2010.

Infrastructure
The J&J Group has spent the past few years steadily growing a pipeline of infrastructure opportunities in South Africa, SADC region, the rest of Africa and the Middle East, with a particular focus on renewable and conventional energy, telecoms and transport infrastructure. Through its partnerships with Areva and Lesedi Nuclear Services, the group has been able to participate in the bid submissions for Eskom’s nuclear power plant programme.

Adding to its portfolio of infrastructure providers, the group also holds a 50% stake in Kutluano Engineering Consultancy, an engineering consulting and project-management firm that owns EON.

ICT
The J&J Group had, until the latter part of 2016, a significant presence in the South African ICT industry. Its principal investment was in TATA Consulting Services South Africa, (TCS SA), which is a major global player that has rapidly expanded its presence in Southern Africa.

The group has since exited this partnership but has agreed to work with TCS SA on project-by-project basis.

RENEWABLE ENERGY
The J&J Group, together with Old Mutual and SolaireDirect, owns two solar farms outside Vredendal and Aurora in the Western Cape.

These projects are part of the Department of Energy’s Renewable Energy Independent Power Producer Procurement programme (round two) and have already been commissioned, providing a total of 20 MW (10 MW each) to the Eskom grid.

J&J DEVELOPMENT TRUST
Good companies make good products. Great companies go further by giving back. The J&J Development Trust is a means to making the world a better place.

BACKGROUND
Trading as the J&J Group, Jay and Jayendra (Pty) Ltd is a South African-based investment holding and management company with investments in a select group of companies.

Over the past 18 years, the company’s targeted investment areas have included road and rail concessions; telecoms; financial services; and conventional and renewable energy. Its most significant investments in PPPs include the following:

  • The Gautrain – a rapid transit system linking South Africa’s financial and legislative capitals (Johannesburg with Pretoria) with OR Tambo International Airport. Consortium members includes Murray & Roberts, Bombardier, Bouyges and SPG.
  • The Vaal River Extension Substation Augmentation Project (VRESAP) was a PPP project designed to transport raw water through a 122 km steel pipeline from the Vaal dam to Secunda. Consortium members included Murray & Roberts, Group 5 and WK Construction.
  • As part of the Protea Parkway Consortium, the J&J Group reached preferred bidder status for the construction, maintenance and operation of the Western Cape N1/N2 toll road.
  • As part of the Prison PPP project, the J&J Group reached ‘best and final offer’ (BAFO) stage.
  • The group also reached BAFO stage on the design, finance, construction, maintenance and operation of South Africa’s Department of Foreign Affairs premises.

The J&J Group had roots in the IT sector and continued to have a significant presence in the market through its principal investment in TCS SA. The group also had a significant stake in Verizon Business South Africa, a subsidiary of the US-based telco that provides advanced IP, data, voice and wireless solutions to large businesses and governments from around the world.

The J&J Group has also built a presence in financial services through its flagship holding company, First South Financial Services. In 2006, First South concluded a merger with the corporate advisory arm of Macquarie Bank Africa. The merged company provided a range of services, including stockbroking services that covered a full research team and a trading and settlement service to institutions as well as investment banking services.

Since its establishment, the J&J Group has built good, mutually beneficial relationships and partnerships with several global companies. These are anchored by Old Mutual, the LSE-listed financial institutions, which is a significant shareholder in the J&J Group.

Other significant international companies with which the group had concluded business partnerships include Areva, Verizon, Tata Group, Macquarie Bank, Bouyges, Dr Reddy’s Laboratories and Bombardier.

The J&J Group has a strong group Executive Team comprising Jayendra Naidoo (Chairman), Tladi Ditshego (CEO) and Nazir Alli (Resident Adviser).

South Wing, The Place
No. 1 Sandton Drive, Sandton, 2196, P O Box 784738
Sandton City, Sandton, 2146, South Africa
Tel: +27 (0)11 301 5000, Fax: +27 (0)11 783 8653
[email protected]
www.jandjgroup.com

On an upward trajectory

As a leading investment holding company, the J&J Group looks to smart partnerships and acquisitions for its ongoing success
16 Aug, 2017

Healthy societies can only be built on pillars that include peace and security, respect for human rights and the rule of law. It is the entrenchment of the law and the deepening of the capacity of the judiciary that enables a country to flourish. True democracy cannot exist without it.

South Africa’s Chief Justice, Mogoeng Mogoeng, explains that where the rule of law is observed, little or no room exists for unconstitutional regime change or election rigging. ‘This is so because courts can always be approached to ensure compliance with the regulatory framework that governs elections and a change of government. Proper observance of the law deepens democracy because it enables the holding of free and fair elections regularly and as prescribed.

Proper observance of the law deepens democracy, says Chief Justice Mogoeng Mogoeng

‘Additionally, government and democracy-supporting institutions ensure compliance with the Constitution and the law.’

The Constitution upheld by South Africa is considered one of the most progressive in the world – so much so that US Supreme Court Justice Ruth Bader Ginsburg has heralded it as ‘a great piece of work’. What makes it so, says Mogoeng, is that the aspirations contained within are being given practical expression.

‘Millions of houses have been built for the poor; water and power are being rationed out to the financially under-resourced; and free education and medical treatment are enjoyed by the indigent and children of those earning below the breadline. However, as with all systems, while the Constitution is not perfect, it is innovative and broadly a well thought-out and thorough programme that is directed at meeting the needs of the economically disadvantaged,’ he says.

The checks and balances that South Africa maintains to ensure its Constitution is upheld encompass foundational values of openness, responsiveness and accountability – and these in turn enable good governance.

This is achieved through a number of institutions that have key responsibilities to ensure the strength of South Africa’s constitutional democracy, such as the nation becoming arguably the first on the continent to insulate judicial independence.

With that comes a deeper understanding of just how crucial the rule of law is. ‘Duly promoted and properly enforced rules of law translate into no single individual being able to exercise power that he or she does not have,’ says Mogoeng. ‘There should be no opportunity for anyone to disregard laws or disobey court orders.

Chief Justice of South Africa Mogoeng Mogoeng

‘The rule of law effectively outlaws the impunified abuse of power or government resources. This applies anywhere in the world and is why Constitutional Courts are generally vested with enormous powers.’

The Constitutional Court is the supreme law in South Africa. It is empowered to declare any law or conduct that is inconsistent with the Constitution to be invalid.

In Mogoeng’s words, ‘it bears the responsibility of being the ultimate guardian of the Constitution and its values, as well as ensuring that all branches of government act within the law in fulfilling its constitutional obligations’.

The onus of constitutional enforcement falls to nine judges under the Chief Justice and his Deputy. Appropriately qualified, fit and proper persons are initially nominated by the Judicial Service Commission, after which the public and legal bodies have an opportunity to comment on the suitability of the candidates.

After a public interview and the presentation of 12 candidates (three more than are required), the President of South Africa makes the final decision on the nine appointments. ‘Judges are required to take an affirmation – or oath of office – to uphold and protect the Constitution and the human rights entrenched therein, as well as to administer justice to all persons alike without fear, favour or prejudice,’ says Mogoeng.

‘We take our oath of office and judicial independence very seriously and will do our utmost to protect it.

‘I deal with the matters that come before the Constitutional Court in terms of the law, irrespective of who the parties are – and that’s the principle that is applied to all judges in the country.

South Africa’s Constitutional Court is the ultimate guardian of the country’s highest laws and their values

 ‘In being head of the Constitutional Court, I am responsible for presiding in court and the allocation of cases to judges of that court.’

Mogoeng’s role is far greater than the constitutional arena, however. His role as head of the judiciary includes presiding over the Heads of Superior Courts meetings, the latest of which indicates the collective judges’ unwavering commitment to ensure justice towards the South African populace is dispensed.

‘We have also committed to the development of a system that will allow the judiciary to communicate issues relating to our performance; the use, adequacy and inadequacy of the budget available to us; as well as the infrastructural, logistical and judicial capacity-related challenges we face,’ says Mogoeng.

These are issues the entire continent’s judiciaries face and why the Conference of Constitutional Jurisdictions of Africa (CCJA) has been a catalyst in unifying constitutional justice and arbitration across its member states.

At the time the CCJA was established (in 2011) by presidents and representatives of African constitutional jurisdictions, there was a dire need to promote constitutional justice across the continent.

Mogoeng has served as one of the organisation’s Vice-Presidents, and at the 4th CCJA Congress he was expected to be elected its President. In this capacity, he is cognizant of just how vast and intimidating the jurisdictional diversity in Africa is, as well as the value of the economic advances experienced over the past five years, which have played a significant role in effective and efficient change to African legal frameworks.

‘Judicial independence and the speedy delivery of quality justice to all in an effective and efficient manner has a very important role to play in creating the stability and investor confidence to incentivise more – and new – investment or capital injection in an economy,’ he says.

Whether real or perhaps imagined, the perception that African jurisdictions are (among other issues) corrupt, not impartial and unreliable given political instability or civil unrest has been a factor that has restricted corporate investment.

‘The reality is that the corporate world and potential investors ordinarily require a particular environment to settle down, particularly in developing countries,’ says Mogoeng.

‘Broadly speaking, the environment they tend to insist on is one where peace, stability and constitutionalism exist – and where the rule of law is observed.

‘The success or failure of business often depends on the type of judiciary a particular country has. A compromised or corrupt one could easily ruin an otherwise flourishing business depending on what its members have been offered.

‘A judiciary that lacks independence could shipwreck an investment, depending on who has the capacity to blackmail or intimidate its members or even grease their palms.’

This is something Mogoeng is sincerely passionate about. His view is that in many respects there is a lack of enforcement of corruption-busting legal machinery.

‘Africa desperately needs a truly independent and efficient judiciary in each of its nations to create peace and stability,’ he says.

‘I have no doubt that when citizens know that there is an effective and efficient court system in their country, and that arrest, prosecution, conviction and sentence for the guilty is predictable, then corruption and crime in general will decrease.’

According to Mogoeng, the theme of the 4th CCJA Congress – namely Strengthening the Independence of the Judiciary and Respect for the Rule of Law – highlights the significance of the role of African Heads of Courts in terms of being able to influence legal frameworks that effectively have the ability ‘to see all our courts and arbitration systems characterised by impartiality and real justice’


Private Bag X 1, Constitution Hill, Braamfontein, 2017
Tel: +27 (0)11 359 7400
[email protected]
www.judiciary.org.za

Fundamental principles

Fulfilling the ideals contained in the Constitution is dependent on a solid legal framework, says Mogoeng Mogoeng, Chief Justice... Read more
11 May, 2017

In May 211, 52 representatives from 25 African countries gathered in Algeria to adopt the statute of the Conference of Constitutional Jurisdictions of Africa (CCJA).

‘The achievement of this ambitious project constitutes a deep wish of our different jurisdictions and the African legal community to federate in a common whole,’ said the CCJA’s first President, Robert Dossou, who is also President of the Constitutional Court of Benin. ‘This whole will remain attentive to the experiences accumulated by the constitutional jurisdictions within regional or linguistic groups and open to the evolutions of democracy, rule of law and human rights in the world.

The Conference of Constitutional Jurisdictions of Africa participates at World Conference on Constitutional Justice events

‘The necessity to create this continental space is the result of a double assessment that our jurisdictions have certainly accumulated particular and various experiences. But they have not yet, following the example of the existing spaces all over the world, established regional or linguistic belongings, a collective space of co-operation and exchange set on shared values and objectives.

‘So the creation of this conference comes to federate our energies and strengthen the commitment of our continent to universal values and principles of the rule of law, of democracy and human rights, clearly expressed in the Constitutive Act of the African Union and reasserted in the African Charter of Democracy, Elections and Governance. The co-ordination of our positions and our joint efforts to make the voice of Africa heard, as a united continent, strong with its unity and rich with its diversity, and allow it to contribute in the field of constitutional justice, constitutes an objective which is naturally common to us,’ said Dossou.

The CCJA is an independent institution that consists of constitutional judiciaries in Africa that work together so that the judiciary in each member state deepens and supports democracy by upholding constitutionalism and the rule of law.

Currently, 35 African constitutional entities are members of the CCJA, which has its headquarters in Algeria

Currently, 35 African entities are full members of the CCJA, which has its headquarters in Algiers. In terms of its founding statute, the CCJA aims to bring together, in a common African framework, African jurisdictions responsible for ensuring compliance with the constitution; advance constitutional justice in Africa through dialogue and consultation; promote solidarity as well as mutual aid among its members; encourage the sharing of experiences and information in constitutional jurisprudence; establish links with the legal community, in particular academia; develop relations of exchange and co-operation between the conference and similar organisations throughout the world; and offer the contribution of Africa at the international level in the area of constitutional justice.

The need to form the CCJA was driven by Algeria, and adopted by the AU at the 15th session of the Conference of Heads of State and Government, held from 25 to 27 July 2010 in Kampala, Uganda. A Congress of the CCJA is held every two years and in April this year, the 4th Congress was held at the Cape Town International Convention Centre, with the theme Strengthening the Independence of the Judiciary and Respect for the Rule of Law. It was hosted by the South African judiciary, led by the country’s Chief Justice, Mogoeng Mogoeng, who was expected to be elected President of the CCJA for a term. There are also five Vice-Presidents.

‘There is a dire need to promote constitutional justice on the continent, and South Africa will continue advocating for independent judiciaries and observance of the rule of law on the continent,’ says Mogoeng.

The CCJA enjoys a close relationship with the AU and in April 2015 signed an MOU with the organisation ‘that will establish a partnership with the aim of increasing the effectiveness of both parties in their efforts to promote democracy, good governance, human and peoples’ rights, constitutionalism, fair and free elections, and the rule of law in Africa’.

In a press release the AU said in terms of the MOU, the two organisations will co-operate closely and ‘undertake joint actions and activities to implement the African Charter on Human and Peoples’ Rights, the 2002 African Union Declaration on the Principles Governing Democratic Elections in Africa, the African Charter on Democracy, Elections and Governance and other relevant instruments’.

Ties will be strengthened in terms of several objectives, including granting the CCJA observer status to the AU; regular consultations policies and procedures; joint training programmes and workshops; and the implementation of mutual projects. All the work of the CCJA is tailored towards strengthening major frameworks of the rule of law and stressing the work of the continent’s judiciary in protecting human rights.

As former chairperson of the Commission of the AU Jean Ping said at the first Congress of the CCJA: ‘We must emphasise the important role of constitutional courts in defence of citizens’ rights in that they are the last defence against their violation.’

Defending justice

The Conference of Constitutional Jurisdictions of Africa is an independent institution that supports democracy by upholding constitutionalism and the rule... Read more
11 May, 2017