Today was jammed packed with company visits. First up – the Johannesburg Stock Exchange (JSE). The JSE was founded in 1887, a year after the discovery of gold in Johannesburg. It is the oldest exchange on the continent. Benjamin Woolen came to Johannesburg during the gold rush and needed to raise capital for his mining business, so he decided to sell pieces of his company (i.e. go public). In 1996 the JSE closed the floor and migrated to an electronic/automated trading system. In 2007 they outsourced their trading platform in order to acquire the same platform used by the London Stock Exchange. Before the migration they were doing 2-3 thousand trades per day and today they are doing 80 thousand trades per day with an average value of 15-20 billion rands daily. There are 419 companies, 938 securities, and 47 foreign lisitings – valued at 5 trillion rands (400 billion US dollars). They are the first member of the World Exchange Federation (WEF) from Africa. JSE is currently a public company, they listed in 2006. They formed the Africa Board in February of this year to attract companies to list on the JSE and to encourage dual listing. There are 19 exchanges across 16 sub-saharan countries and the JSE is the largest. We learned about the types of market abuse, ways to prevent abuse, detection procedures and reporting back to FSB (Financial Services Board). The JSE is a top notch, very sophisticated operation.
The next stop was Coca-Cola South Africa. During this visit we learned a lot about the PET Recycling Legacy Program for 2010, aimed at raising awareness about the importance of recycling plastic bottles. Tied in to the 2010 FIFA being hosted in South Africa, Coca-Cola has teamed up with schools and stadiums to activate recycling programs. At Coca-Cola South Africa, they have a big passion around developing the youth of South Africa. We also learned a lot about the art and science behind Coca-Cola Marketing and how it took effect for the 2010 FIFA Zakumi campaign. Coca-Cola is the longest standing FIFA partner (since 1974). They are using this opportunity to “teach the rest of the world to release their African rhythm.” During lunch we got a quick review of their CSR programs and volunteer efforts of the entire office, including their president. I was thoroughly impressed by their slick marketing and uniformed messaging in typical Coca-Cola fashion. Once again, I was proud to be an employee of the greatest brand in the world!
Next up…Global Access. Global Access is based on technology driven communications. They are the largest private broadcasters in the country. They use satellite as a medium to broadcast to private niche audiences. South Africa has broad band connectivity issues that make the use of the internet and things like Web Ex near impossible, which is why this business is so relevant. Global Access customers like ABSA use their studios to hold meeting, presentations, etc, which are broadcasted real-time via satellite to ABSA regional offices or client base. They specialize in digital signs that attract, entertain, encourage transactions, are interactive and can be used for internal communication. They offer something of value that is also useful. Their revenue currently stems mainly from production and airtime and in the future they hope to be able to charge for monthly site management. Since much of Africa still has grossly remote and rural areas, even as internet connectivity improves, their business will still be relevant. They also plan to offer competitive pricing again web casting when the internet become more viable.
Our final stop of the day was the Routledge Modise law firm in association with the Eversheds Network. Routledge Modise is one of the leading law firms in South Africa with a staff of 360 in Johannesburg. They only recruit staff that can identify with their non-negotiable values of decency, generosity of spirit, accountability and commitment to world class legal services. Routledge Modise has a commitment to learning and development. They are now an accredited body by the law society to teach law, so they have an in-house law school, taught by their own partners. They have 50 offices in 30 jurisdictions. They are a progressive firm, constantly looking for better ways to provide creative and cost effective legal and business solutions for clients. The firm is committed to diversity. They have 70 partners, 24 of which are female and 34 if which are black, colored or Indian. Routledge Modise is currently working to expansion efforts in India and China since the prime ministers of each of those countries have committed to investing money into South Africa by 2010. Relationship building, understanding the culture and demystifying Africa has been essential to cultivating successful partnerships in these countries.
Side Bar (pun intended): I learned today that the concept of a jury does not exist in South Africa, but they do have a Supreme Court of Appeals.
Whew. I’m exhausted. But the cherry on the top of today was getting the opportunity to meet Kemble Elliot, South African teacher, author and playwright. Jacobus introduced us to her book, Twisted Cup and Lip during this trip and I fell in love with it. It is a wonderful story about relationships.
Tomorrow I bid South Africa a fond farewell.
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