Financial architects who shape South Africa’s iconic brands

Their discussion explored the responsibilities and vision behind these beloved brands, offering valuable insights into the financial strategies driving their success.

In a panel moderated by Abdullah Verachia, Bothwell said mining is the backbone of the South African economy accounting for 6 percent of GDP and a major employer of about 500,000 people. This results in a huge knock-on effect on communities and families, and because of this, the concept of share value is as important as profits are.

He explained that despite being a CFO, he gets excited about sharing enduring value, which comes in various forms, from taxes and royalties paid to South Africa’s fiscus, to distributing value via supply chain and procurement, as well as creating and supporting local businesses and making investments in education, health and other areas.

Zaf shared that since he joined Oceana two years ago, one of the first things he did was look at the balance sheet, reducing debt so they now had the capability to invest more. He stressed that focusing on capital location principles is key, proving that running a healthy business is about getting the basics right, not fancy stuff.

Nelisiwe said the purpose and essence of Famous Brands is to nurture franchise partners so they can service their communities. She said key values of the business are to get the right location and brand, as well as building partnerships with partners who understand the brand values of the group. “At Famous Brands, our core belief system defines how we engage and support our franchisees. Driving family values creates wealth, but also enables economic freedom of the partners and their dependents,” she said.

She added that a key part of her role is supporting partners through challenges such as loadshedding, which reduced franchisees’ revenues. “So, what we did when power cuts were at their height, was assist in being able to deploy alternative power. Some retailers had access to generators, but some didn’t. We had to find smart ways of ensuring trading continued during off hours.

“During these periods we offered royalty breaks to franchisees to offset the cost of running generators, as we had done during Covid-19. We also help negotiate leases with landlords and other ways to make business more profitable. Additionally, we invest in technology so that our infrastructure benefits all partners.”

CFOs pushing social agendas
Bothwell said he was deeply committed to projects that positively impact the environment, foster thriving communities, and invest in education. He highlighted the mine’s extensive support for community health initiatives and their goal of creating five offsite jobs for every onsite job.

Leveraging his strategic position as CFO, Bothwell actively champions social issues and uses his platform to advocate for change. One of the key challenges he addresses is logistics, since Kumba relies on Transnet, which has experienced significant deterioration. He strategically engages with the government to explore alternative operating models and improve the performance of infrastructure, recognising its crucial role in the economy.

Zaf stressed the importance of affordable protein in South Africa’s economy, citing chicken as an example that requires cooking and refrigeration and noted that consumers are increasingly turn to starchy foods due to economic challenges, protein deficiency has become a growing concern.

Nelisiwe stated that iconic brands have a deep emotional connection with South Africans, and CFOs play a crucial role in ensuring their continued relevance and consumer loyalty. While the brand itself is visible, there’s a complex process behind it, involving understanding the business, facilitating product access, sourcing high-quality materials, collaborating with partners and maintaining profitability.