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Adrian Gore

Business in Africa has never been rougher, drop your guard for a second and chances are the new kid on the block will poleaxe you with a right hook. Just ask entrepreneur Adrian Gore, the founder of the $6.5-billion Discovery Limited, who built his empire by turning the health insurance industry on its head.

Now Gore has set his right hook on the banking industry with the launch of a $105-million bank. Just another day in the life of a man who takes a look at a market to see how he can disrupt it.

“It’s been a remarkable 25 years. It doesn’t feel like it. If you build a business and find the organization ages better than you do, then Discovery feels brand new… We are always immersed. No one is sitting here in the boardroom drinking cognac thinking about the past. We are humble because we are building, it’s like day one here,” says Gore.

Gore is seen as an innovator in Africa with plenty to say. This vision has seen the self-taught entrepreneur, and actuary by profession, work his way to a $522 million fortune. It’s a far cry from 1992 when Gore was the hungry new kid on the block tying on his gloves in the far corner.

“It started out as this anecdotally opportunistic idea, and as soon as we did it we knew, s*** this is big. This has got great potential.”

The key to Gore’s success was the idea to reward people for looking after their bodies.

“Health and life insurance are typically grudge purchases. Our fundamental success in this market has been making health insurance sexy, cool, accessible and different,” says Gore.

These days, one in every three South Africans put their money down in the hope of reward. It’s made Discovery the largest supplier of medical aid in the country.

This is just the beginning of a global network that has expanded into 16 countries, including the United Kingdom, United States, Singapore and Australia. Ultimately it leads to one thing: making 10 million people healthier by 2018.

I believe that it is often during moments of difficulty that the best ideas emerge. Times of crisis can often lead to progress, and hard economic times can be a catalyst for positive change. When we started Discovery in 1992, the country was in a state of political turmoil. We saw an opportunity to create a business that could positively impact the healthcare system and we found a way to move forward.”

BANKING ON DISRUPTION

If you want to bank on something, it should be on Discovery disrupting business. Now Gore believes he can do the same in banking.

“We don’t disrupt for the sake of it. We don’t sit and think ‘how do you disrupt?’ Most markets are not based on behavioral issues. They are not based on the model we’ve developed, so when we come in and we do it right it, by nature, is disruptive,” says Gore.

Adrian Gore (Photo by Jay Caboz)

In 25 years, Discovery’s share price on the largest bourse in Africa, the Johannesburg Stock Exchange, has gone from R10 ($0.70) to almost R150 ($10.40) – an inflow of shareholders’ money that is helping Discovery Bank Limited take advantage of its new banking license. It could be open as early next year pending the Competition Commission’s approval.

“We’ve never made an acquisition here, everything here has been organic. We’ll probably invest, in total, by the launch, R1.5 billion ($105 million). It’s a considerable build,” says Gore.

In Africa’s economically challenging times, everyone is looking for better ways to save their hard-earned bucks.

“We’ve been working on it for two years now, with a good team and very strong people… it’s not an easy thing to do. I’m not sure there is an excellent time to do it. I think it will take a decade long to develop something that has materiality in that space… We came to the conclusion, given our technology and being given the ability to start our own legacy, we said let’s start it slower and proper.”

Gore is playing his cards close to his chest. He has said little about how he intends to integrate banking with his other businesses. What we do know is that he will set his sights on the rising middle class.

At the center of it all is his team of Apple-watch-wielding actuaries, who will also need to come up with something so that the business can stand out in the crowd. It’s a tough crowd too. The territory is already held by heavyweight banks who’ve been there for generations, like Standard Bank, Absa, FNB, Nedbank, and Investec. They also want to modernize and make use of big data.

“We’re not going into a weak market where the banks are useless, that they need to be shaken up. I don’t believe that at all. My sense, anecdotally, I think they are worried. I think they think we will be disruptive. I think they have a healthy respect for us. But there is no panic here. No hubris here,” says Gore.

“We’re going to target the mass affluent. We’re going where our customers are. So it’s pretty broad. It goes from a fairly low LSM to a high one. Our approach is not to focus on [the banks]. We need to focus on our customers.”

READ MORE: ‘Healthcare Has Got To Be Available To Everybody’

The bank has got a lot of people talking. As South Africa grapples with its rocky economy, that faces possible ratings downgrades which could send stock prices tumbling, the markets are looking for something to shake things up, says Michael Treherne, a portfolio manager at Vestact.

“The banking sector is ready for disruption. Capitec has done this for the lower LSM customer base and Discovery will be looking to use their huge database on behavior traits to disrupt the top-end LSM. As the saying goes though, the proof is in the pudding,” says Treherne.

“They offer a product that is unique globally. Their massive database is the moat between them and competitors. Also, their white-labelling strategy of selling their intellectual property and not needing to put in capital upfront means they can grow very quickly.”

Over the long term, Treherne believes Discovery will be able to weather the storm.

Another market commentator, Chantal Marx, Head of Research at FNB Securities, also backs the company.

“[Gore] is the ideal guy to be at the front of the businesses challenging the status quo and changing the face of insurance…They have revolutionized the way companies see their clients. I think they will compete with banks like Investec and the private banking offerings by the big four. If they can get people to be sticky and put their entire financial portfolio together, it’s where Discovery will make their money.”

The only problem, Marx says, is Discovery is seen as pricey.

“The expectation of growth relative to someone like Sanlam doesn’t justify the premium. But I think investors are willing to pay a little bit more for their innovation slant.”

Meanwhile, Gore backs himself by having no investments other than his shares in Discovery.

DINNER TABLES

From a young age, Gore learned business by doing.

“Ironically [my father] was a tobacconist wholesaler. He would sell cigarettes and candies between wholesalers and stores. I remember as a kid having to pack cigarettes, I remember all the brands, Lexington and Rothmans, and having to take them out to the café owners. It was actually an interesting business because as time went on the margins got squeezed and wholesalers started supplying to businesses directly.”

“[My father] is essentially an academic at heart. He hated business. When he retired he went and did a bunch of degrees. He never stopped learning, so I grew up with a belief that knowledge and learning is more important than anything.”

READ MORE: A Maverick In Rude Health

From his mother, Gore learned to push himself towards the intellectual forefront. He grew up in a household where discussions around the dinner table involved questioning the ‘way things are’.

“You never kind of accepted that that was how it is and that’s the way it’s expected to be. In my own journey, my own career, it’s been one of my biggest assets; don’t take things at face value. I just don’t.”

“My parents are not essentially commercial people. They are not excited by scale or profit. They are excited by values and doing good,” says Gore.

BUILDING ON BEHAVIOUR CHANGE

Building healthy lifestyles has been the key to Discovery’s success. Under Vitality’s Shared-Value Insurance model, Discovery rewards clients that regularly go to the gym, eat their vegetables and do their medical checkups. Clients are then given free smoothies and discounts on healthy food, cheap flights, and Apple watches.

The model was born in 1992, when the Health and Racquet Group, who later became Virgin Active, approached Gore to see if they could cross-sell into their base. Gore and his team came back and said why don’t we give people health miles and reward them for living healthier lifestyles with discounted memberships.

“Discovery’s entire investment case is premised on that one brilliant original idea which is Vitality. If you look at Vitality, what it basically did was revolutionize the way insurers look at their clients and the way they made risk on their book… What Vitality did is essentially place the risk management outside of the company and what the actuaries do and put it in the hands of the insurers they are insuring,” says Marx.

“Suddenly they have a better persistence; people aren’t lapsing their policies or moving around. They’ve got sticky clientele who are living longer, happier lives. So, the amount of claims they have to pay out are less on the medical health side and on the life insurance side the longer someone stays alive the better it is for the company, because they can continue to invest and build on their investments.”

Two aspects enabled the success of the model, says Gore. The first is technology, the second is understanding risk is behavioral.

What Vitality has become is unexpected. Gore says it is now the world’s largest scientific, incentive-based wellness solution – this is all thanks to terabytes of data its users send every time they update their apps.

Vitality Active Rewards has found that those that use the app increase their exercise levels on average by 24%, and those using Apple Watch increase their activity sustainably by an average of 81%.

“When I started out, companies had mission statements like ‘we endeavor to make shareholders rich’. Our idea was of making people healthier. We were seen as being mad. But today we see now, since 2008, a sense of purpose is what appeals to people,” says Gore.

“In our case, there is a massive spend on technology. A lot of it is on enterprise stuff, the core. In the case of Vitality we have invested hugely in technology to be able to globalize it.”

Utilizing innovative technology has become the forte of the Discovery team. Underpinning this is using big data, which Gore admits to being skeptical about.  

“I don’t think data in and of itself is this nirvana. I mean using A.I. and machine learning, it’s powerful stuff, but it’s the application. The shared-value model, I think, is where we are powerful. I think it’s the DNA and it understanding it through the data, and sharing how people respond is a very powerful thing,” says Gore.

“A.I., without romanticizing it too much, has given us the ability to crunch the data, without upsetting the hypothesis. Overseas we are learning more and more how to use it. In the UK we are using it to help with our pricing,” says Gore.

HUNTING CHINA

In a world where Africa is China’s happy hunting investment ground, Gore is heading the hunt in the opposite direction. With 3.7 million customers in China, Discovery has a 25% stake in Ping An Health Insurance, the country’s largest private health insurer; 2016 saw membership grow by 428%.

“The growth is staggering. It’s something we’ve never seen before. I still think it’s early. These things take seven to 10 years. It takes time. Ping An’s relationship is seven years long, and it’s beginning to expand rapidly. Literally the last years, after we figured out the distribution channels, it’s been hugely successful,” says Gore.

“This is a massive industry in China. Ping An itself is the gold standard in China. Today it’s the most powerful and biggest insurer in the world.”

Adrian Gore (Photo by Jay Caboz)

Gore’s confidence stems from the Chinese government’s plan to introduce privatized health reforms.

“We’ve typically gone into developed markets that have been commoditized and disrupted them; it’s our natural target. It’s slower going, it takes time. Ping An is more pioneering, it’s a market that’s growing, the middle class is emerging. Healthcare is becoming a bigger and bigger issue. So I hope we can continue that trend.”

In just 12 months Vitality Active Rewards, with Ping An Life, has reached 2.4 million members. To give a sense of scale, Discovery now has more people signed up in China than in South Africa.

“China remains a huge growth market, with the estimated total healthcare spend expected to rise by over 90% by 2020. Private healthcare spend is expected to grow even stronger over this period,” says Gore.

Discovery has found it difficult to take on the rest of Africa. This is mainly due to the lack of infrastructure and established private healthcare.

“The insurance space in Africa is very underdeveloped and your insurable population is small relative to the population at whole. You need to be careful about which markets you are entering in. For Discovery, it makes much more sense to invest in developed markets where you have broadband capability and most people have a smart device so that you can afford a wearable,” says Marx.

E-HEALTH LEAPFROG AND ITS CROAK

eHealth, could be the massive opportunity where private infrastructure can help solve Africa’s shortage of doctors. Africa, Gore believes, can short-circuit the shortage of doctors and expensive technology by supplementing them with eHealth developers working on apps to treat patients.

“I think we are sitting on the cusp of eHealth starting to do stuff. Through the smartwatch being able to track things more accurately, there is a whole world of stuff that’s happening,” says Gore.

Disruption has the ability to leapfrog older technologies; especially when it comes to cellphone reach in Africa. Those with keen eyes of innovation can spot ideas and gaps in the market, and create unique solutions to Africa’s needs, while at the same time being exportable.

“The interesting thing in healthcare is we haven’t seen technology bring prices down, in fact we’ve seen prices go up. A new biological drug is discovered and the prices go up… Everyone is carrying smartphones around. The ability to give care out on this basic level is an amazing opportunity,” says Gore.

READ MORE: A Man For All Numbers, Who Turned $50 Into $74 Million

Of course the health industry in his own country faces its unique challenges. The private healthcare industry is anxious to resolve the uncertainty of the South African government’s National Health Insurance (NHI) and its impact on the private sector.

The government claims 80% of South Africa’s population, that’s 40 million people, can’t afford medical aid. Their reality is waiting in massive queues from sunrise to sunset in the hope of seeing a doctor. All this while the other 20% of the people, who can afford medical aid, are treated by 70% of the country’s doctors.

“From our perspective, getting an NHI that bridges the gap and does everything that it needs is crucial. We’ve been involved where we can. I am hoping we can overcome the chasms that are between public and private healthcare.”

Many fear the NHI could be the tipping point for the country’s health system, forcing doctors to emigrate.

“It’s in a complex place at the moment, while the policy details are set and we are going along a process that is right. The details are not clear. I think funding issues are going to be critical. We don’t have the money to fund the kind of services that we need,” says Gore.

Something that could even disrupt the disruptor.

Adrian Gore (Photo by Jay Caboz)

‘You Could Immediately See This Guy Was Different’

In 1992, Adrian Gore raised seed funding from Laurie Dippenaar, the cofounder of FirstRand, and founded the South African medical insurer after years of working with Liberty Life. Dippenaar, who is on the FORBES list of the 40 Richest Africans, was the man who gave Gore his shot.

“You could immediately see this guy was different. He was not the typical chartered accountant nerdy smart. You could see he had intelligence but he also had business sense, all the qualities that make you a success. I think he is actually one of the smartest businesspeople I have ever met,” says Dippenaar.

According to Dippenaar, Gore’s first pitch didn’t go well. His life insurance scheme sounded too much like all the others.

“To this day he says I got it wrong. A year later he comes up and says he’s got something completely different. From life insurance he had gone to a health insurance. He started to describe what he had in mind and I could immediately see he was onto something.”

This something was Discovery.

“When he described that medical savings account, it was a pioneer move in South Africa. I remembered when I was a bachelor and paying all these premiums for health insurance. You are young and healthy you don’t need to claim. All you do is pay premiums. Here was a product where you could carry forward some of the premiums if you were not claiming. In theory you could get into a situation where you didn’t have any premiums to pay,” says Dippenaar.

Gore left his job and Dippenaar gave him three months to draw up a business plan, in Dippenaar’s own offices.

“He never had any hesitation. He came up with the numbers. We liked it. So we backed him,” he says.

The rest is history.

Cover Story

The Madhvanis: The Industrialists Who Have Tasted Sucrose And Success

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The Madhvanis started with sugar and now lead diversified global businesses. In a rare interview from their home base of Kakira in Uganda, Mayur and Kamlesh Madhvani, the Joint Managing Directors of the Madhvani Group, share a century-old tale of extraordinary family enterprise and how they are continuing the legacy of their forefathers. 


It’s  a bumpy 100km drive from the Ugandan capital of Kampala to the town of Kakira in the east. Past the swaying sugarcane plantations and green hillocks and roundabouts intermittently featuring the words ‘Madhvani’ and ‘Sugar’ that announce you have arrived, a tranquil avenue, immaculately lined by pine trees and acacia, leads to Kakira.

From this little town, an international empire was built, with a reach in far and distant lands. To this little town, have many a cavalcade, bearing presidents and global business tycoons, made its way.  

At the sugar factory that is the pulsating heart of Kakira, the quiet of the verdant landscape rapidly gives way to the deafening sound of production. 

The sound of enterprise, the sound of African industry.

Close to the equator and Jinja, the source of the Nile, I am in the ‘cane yard’ of Kakira Sugar Limited, watching giant machines noisily swallow up truckloads of sugarcane and crush them into pulp.

READ MORE | Uganda Sees 11% Growth In Sugar Output This Year

Under the sweltering African sun, these monsters, also known as feeder tables, are four in number around me, relentlessly chopping tons of sugarcane fed by a long line of at least 400 trucks piled high with unruly cane stalks gathered from the fields in this eastern corner of Uganda. 

This is the back-end and the beginning of a well-oiled factory process that will eventually turn sugarcane into foamy rivers of juice and finally sugar.

The entire process, from feeder table to sugar crystal, is completed in eight hours, resulting in bags of refined sugar at the other end.

Inside the factory, even the air is calorific, with the saccharine-sweet smell of sugar – and success. The factory is the soul of the 14,000-hectare Kakira Sugar Estate, which provides a livelihood to some 9,300 direct employees, and sugar to the rest of Uganda and East Africa.       

It is the core business of The Madhvani Group, Uganda’s biggest sugar producer. And everything within a 10km radius from here, belongs to the group.

Generations of the Madhvani family have been based in Kakira, and much has happened here over the last century: success, strife, destruction and resurrection. 

It all started in 1908, when at the age of 14, the family’s venerable patriarch, Mujlibhai Madhvani undertook the long and arduous journey from India to Uganda, to join his uncles Vithaldas and Kalidas Haridas in their shop in Iganga. By the time he was 20, Mujlibhai was tasked with opening and managing a shop in Jinja, a town at the source of the Nile River.

The waters ran deep in his veins as he was determined to make a success of his enterprise. He was appointed the Managing Director of Vithaldas Haridas & Company, which in 1918, bought around 800 acres of land in Kakira. The sugar factory subsequently started operating here in 1930, with a cane crushing capacity of 150 tons per day.

Mujlibhai built his empire on sugarcane, and laid the foundation for Kakira’s development, also empowering the communities within. Kakira grew around the factory and family home.

Soon, Mujlibhai Madhvani & Co. was also manufacturing sweets, soap, cooking oil, ghee, tea, margarine and pastry shortening. It also made cotton and became the agents for imported goods such as Goodyear tyres.

The late Manubhai, Mujlibhai’s second son, writes in his book, Tide of Fortune, an account of the family’s tale, with British author Giles Foden: “My father was the first person in Jinja to own a radio, which he bought in 1938. He purchased a record player in 1940 and soon afterwards, he became the proud owner of a 9.5mm film projector. His love of cars led him to purchase an extremely expensive powder-blue Buick, as well as an Oldsmobile.”

After Mujlibhai’s death in 1958, his eldest son, Jayantbhai, took over the business. Manubhai worked closely with him. By 1970, the Madhvani Group, according to Tide of Fortune, was at its peak with rapid annual growth of at least one new manufacturing unit a year. Manubhai says of his brother Jayantbhai: “I admired his humility and his commitment not only to serve the family, but also the community at large.”  

The factory is the soul of the 14,000-hectare Kakira Sugar Estate, which provides a livelihood to some 9,300 direct employees, and sugar to the rest of Uganda and East Africa. Picture: Forbes Africa

And he further pens: “How did we select the industries we were expanding into? It was a combination of two or three policies, really. The first was to seek vertical integration. If you make beer, you will need bottles, so why not manufacture them and some plastic crates as well?”

Unfortunately, for the Madhvani family, tragedy struck when Jayantbhai died of a massive heart attack in 1971.  

Politically too, Uganda’s destiny was changing.

When Idi Amin came to power in 1971, Manubhai was thrown into the Makindye military prison, an infamous hell hole, by the ruler for 21 days. The Madhvanis, along with the rest of the Asians living in Uganda, were notoriously expelled by Amin in 1972. The family relocated to London and then Kenya.

The sugar mill operation, which was producing 83,000 tons of sugar and contributing to 10% of the country’s Gross Domestic Product (GDP), was destroyed, looted and run down.

“Production had been at a standstill since the end of 1983 and the great hangar where sugar had once been produced was now a home to birds and animals,” says a line in Manubhai’s book.

When Amin was toppled, the Madhvanis returned, to the vestiges of their farm and factory, and a family squabble, with a segment of the family taking over the business in 1980.

The property was returned and the process of recovery started in 1985, with Manubhai and Mayur, Mujlibhai’s youngest son.

READ MORE | The Monk Of Business: Ylias Akbaraly Talks About Secret To Success And Plans To Take Africa With Him

“When you repossess assets that are completely destroyed and run down, there is obviously a great emotional side to this,” says Mayur, the Madhvani Group’s Joint Managing Director, when we meet him in his offices at the Kakira sugar factory on a sun-filled afternoon in March.

The offices he shares with his nephew and Joint Managing Director, Kamlesh, Manubhai’s elder son, are adorned with tasteful MF Husain paintings, family memorabilia and redolent with the smell of incense. The British-educated Mayur, wearing a crisp white linen shirt, warmly invites us to his office space.

“For us, it was not so much a business decision, I think it was more of an emotional decision but it ran into the business arena because we knew that once the industry would come up, there would be growth,” continues Mayur about the challenging 1980s.

Kamlesh, 64, who joined the business a few years later, and is the younger of the two, chips in: “Kakira is where the roots of the family are. What we learned very quickly was that it is far easier to build something new than to rehabilitate something that is in total disrepair. It is not only the physical assets but also the mentality of the people.”

They had to work hard to return it to the glory days of the past.

“When we were here before 1972, we had connections with a lot of leaders. Mrs Indira Gandhi visited us, and also the Kennedys; they all used to visit Kakira. Martin Luther King was here, to meet my brother. My father of course is the pioneer. I mean if you look at the way the estate is laid out, it was this man in the early 1950s that laid it out,” recalls Mayur.

 Today, the Madhvani Group is one of the biggest diversified private-sector businesses in Uganda, with assets of $750 million for the Kakira sugar business, producing 180,000 tons of sugar, 74,000 tons of molasses and 22 million liters of ethanol.

The sugar factory also makes green electricity. Very little of the sugarcane is wasted. The fiber from the process, or the bagasse residue, is burned in large boilers to generate steam that drives the turbines.

The facility also generates 51MW of electricity daily and of that, sells 32MW to the national grid, “enough to light up Kampala”, says Mayur. This is one of the biggest bagasse co-generation power plants in Africa.

A tour of the sprawling factory is rounded off with a visit to a storage warehouse with mountains of 50kg sugar bags, stacked from floor to ceiling at any given time, ready to be hauled onto waiting trucks. 

At an altitude of about 4,000ft, Kakira is lush, fertile territory offering year-round harvest. The sugar factory stops only for a month every year for maintenance. It processes its own cane but also buys from the farmers, or the out-growers, living outside the nucleus of the estate. This is an association built from Mujlibhai’s time.

Kamlesh and Mayur Madhvani, the Joint Managing Directors of the Madhvani Group. Picture: Forbes Africa

“There was a genuine affection when we came back [in 1985]. But it was very nice to say the Madhvanis are back but the Madhvanis are not magicians,” recounts Mayur. “It takes a lot of hard work and strategizing, and with government support (President Yoweri Museveni was newly elected at the time), we managed, through our small efforts, to instil in him, the aspect of business not necessarily being a bad thing. He was the one that allowed us to move forward and put this company right and pay taxes.” Fast forward to now, and the group’s focus continues to be to build its core businesses.

It is commencing a new $150 million sugar project in the northern district of Uganda named Amuru, working closely with the government. It has a sugar project in Rwanda, and projects in South Sudan and Tanzania are also on the cards.

“If you are manufacturing food commodities, it’s going to grow and this is the bread basket of the world. The Ugandans went through hell with Idi Amin but you never heard about famine because we can put anything in the ground here. We are so blessed,” says Mayur.

Cashing in on the salubrious climate and natural resources, another focus area for the group is tourism. There are nine lodges that it currently operates in Africa including in Rwanda, Uganda and Kenya.

One of the ways in which it opts to stay relevant is with partnerships. 

 “In the past, we used to think we can run [the business] ourselves and have those old-fashioned conglomerates. Those days are gone. You need to tap into the international market and get good world-class partners to work with and work with the right value for the African context,” offers Kamlesh.

And this applies to management as well, to further professionalize what is a family-run business.

“Most businesses that have started have been family businesses, if you look at Walmart, Ford, etc. But what you have to do is move away from the family business and let it become a little bit more professionalized,” adds Mayur.

“You want to avoid falling into the trap where the first generation creates, the second generation enjoys and the third generation destroys. We are the second generation moving to the third. The Madhvanis have broken the mould, but now [it’s not] for us to think we are infallible. We need to set up something that other family businesses can emulate, and follow other families that have succeeded in this. For that, you need to have a business that is professionally-run, yet have the family involved to give direction and not lose total touch or control.”

For this reason, the group mandatorily organizes three meetings a year in Bermuda, attended by family members and stakeholders.

But why this location in the Atlantic Ocean, far from Kakira? “We set up our companies in Bermuda in 1958, so we have been there some serious years now,” says Mayur. “In those days, perhaps it’s correct to say Bermuda was a tax haven, but now, the corporate tax structures have changed. Bermuda becomes a good venue because it is one of those tax havens that is also respected by various jurisdictions and for us, it is a historical fact that we were based in Bermuda. Our boards are all there.”

In Bermuda, the family also meets with members not actively involved in the business. Even the youngsters who are a part of the business have to report on their activities.

 “We present our reports to the family and I think the secret that myself and Kamlesh are looking at is that the business has to be such that it survives this turmoil of create, enjoy and destroy and there is transparency. The secret is transparency. The more transparency you have in a business, the more likely it is going to survive the long-term because then individuals are not allowed to mess up the day-to-day control systems,” says Mayur.

“Leadership is something that you grow into by an accident of life. I am not the oldest of this family. I have two brothers but they are much older. Kamlesh’s dad, and my elder brother Jayant, sort of had the experience of my father. So did Pratap and Sur, my elder brothers and then things changed. We came back here and I worked closely with Kamlesh’s father and he had a lot of knowledge and I had the advantage I had. We got on as a team wonderfully, and in any business, you always need the ying and the yang. Kamlesh and I work very closely but you will find that each one of us is very good in certain aspects of the business. That is so important.”

As Joint Managing Directors, their offices are adjacent to each other.

“We have this little window and we shout at each other or talk to each other whenever we want,” laughs Mayur.

“We are more like brothers, but he is still my nephew. As children, when we were at boarding school in the United Kingdom, his mother was always worried and I had to look out for him.”

Looking ahead, the Madhvani Group plans to produce rum, vodka and gin, predominantly for the export market. All of these are by-products of the same crop – sugarcane. The distillery at the estate produces 22 million liters of Extra Neutral Alcohol or ethanol a year.

“Sugar is the main product, [but] it’s quite possible in the time to come that some of these other activities from the by-products will become the main product. Such as electricity and alcohol… We are even putting up a plant for carbonated waters coming up next year,” says Mayur.

The Kakira sugar factory back in the day; the original sugar mill of 1930 is preserved to this day within the factory compound at Kakira. Picture: Supplied

But Uganda, a part of the East African Community (EAC), has a population of about 45 million and a poor rating score in the EAC when it comes to corruption. Surely, that’s discouraging for investors?

“The biggest problem we have in Africa is nearly 58% of the population is below the age of 30 and these individuals really do not want to hear about the wars because it is history. They are looking to see Africa catapult itself to another level. What the businessman needs is political stability and structured legal systems so that you feel comfortable doing your activity and I think [that is the only way] you will see Africa grow,” says Mayur.

“And yes, we do have corruption; it is endemic, you have corruption in every country. You have got to stop it. You have to have the right systems in place and you have to have total transparency on how businesses are conducted. Countries have gone through these stages and I think you have got to make an effort to try and eliminate corruption actively, without lip service. Now, action needs to be taken. If you look at Rwanda, it has progressed amazingly. As a businessman, what I have seen is the efficiency in which the government works, and the government takes decisions very pragmatically. That is the kind of model one needs to follow.”

At this point, Kamlesh interjects to say decisions taken must be implemented too.

 “It leads to frustration. In Uganda, you have the President who has tremendous vision, and his vision towards the private sector driving the economy becoming the engine of the economy is absolutely spot-on, but there is no follow up,” agrees Mayur.

As in other countries of the EAC, in Uganda too, private-public partnerships may be the way forward and it takes effort from the private sector to lead that charge.

  “The politics of Africa is very similar. Leadership is important but then [you have to] have growth cycles driven by the private sector. I remember there was a time when in Uganda, prior to the expulsion of the Asians in 1972, to do business was criminal. If you were a businessman, you were regarded as a crook. Today, it is instilled that everyone should do business; business is a good thing. There are positive changes.”

The Madhvani Group’s sugar project in Amuru, in northern Uganda, for example, will be owned 51% by the government and 49% by the group and it will be managing it.

“Eventually, the government will offload the shares to the general public, but I think it is important for all private sector businesses to try to involve the community, the population around you,” says Mayur.

“Kenya’s President Jomo Kenyatta gave a good analogy when we left Uganda. He said ‘in the case of you Madhvani, you are the tree and the tree has fruit and if you share the fruit with the local community, the tree will get water’… For instance, we make the products, but we don’t do the distribution, we allow the others, we have our out-growers.”

 “The farmers benefit more, we have a very successful joint venture NGO with them,” adds Kamlesh. “Essentially, we convinced the farmers to contribute a certain amount of money which we will also contribute and this money goes to finance roads, clinics, health facilities and orphanages. This is one quite unique experiment. The farmers have voluntarily sort of parted with money.”

READ MORE |WATCH | The Making Of The New Wealth Creators Cover

 For farmers like 48-year-old Naitema Godfrey, who owns 48 acres of land and has been an out-grower for the Madhvani Group for the last 15 years, sugarcane is everything. Calling himself a “sugarcane millionaire”, he says: “The food crop has given us money, power, sugar and electricity.” 

Another out-grower, Robert Waako, who has been supplying sugarcane to the Madhvanis for the last 26 years, says he has been able to put his six children through school and college; four of them are software engineers today.  

On the cards for the Madhvani Group is a possible listing in the future. The group also operates properties in India, and is big on religious tourism with hotels in famous pilgrimage sites.

“Indians are very religious, they go to these sites, but don’t have a good place to stay. We built a beautiful four-star hotel in Tirupati. We are now opening one in Bodh Gaya, and we have in Rajkot. At Rishikesh, we have the land, and we are looking at Shirdi and Benares. They are all in the pipeline.”

Back home in Uganda, the group are also big in packaging and steel.

The discovery of oil in the country has made investors and the private sector sit up to the opportunities to fund development.

The Madhvanis are also keen to hop on to the bandwagon.

“We are looking for good partners to work with. We have our infrastructure companies, also working on the logistics side,” offers Mayur, but says Africa’s real strength is the green economy.

“I think oil is overplayed, and is not going to solve our problems. I think oil brings problems in itself, from an environmental point of view and the point of view of not becoming too reliant on this one product. Look at Nigeria and Saudi Arabia; they are all looking at alternatives now. The one thing you have got to remember in Africa is we have the weather, and we have vast tracks of land that are fertile. I think Africa can be a great grain basket for the world.”

The next generation of the Madhvanis are in line to take the company to the future. Mayur’s 34-year-old daughter Tanya, who is based in Rome, is responsible for managing the hotel business.

His nephew Ronnie was tasked with reviving the packaging business and he has built it into “a multi-million enterprise through his creativity and marketing efforts”.

The caveat is that family members who are involved in the business must contribute to its growth. Kamlesh and Mayur too came up learning the ropes the hard way.

“We have enough youngsters in business. But just employing family members for the sake of employing them and giving them a posh office is totally wrong and it hasn’t worked. What you have to do is contribute, and when you do, you also get a share of the success as an individual,” says Mayur.

“Basically, we are all fortunate we had good role models to follow. If you read my father’s book, you will know we had our own turmoil in the family. Kakira did not come to us and say ‘here is the key’; we had to fight for it. We had to fight for it from other family members as well. We are not the perfect family; we had to prove ourselves [in addition to] the passion we had [for the business]. That is the type of determination that made it work,” says Kamlesh. 

READ MORE | Businesses Of The Future: 20 New Wealth Creators On The African Continent

“We started at zero…” adds Mayur.

Today, the family members all have their own businesses too, and in different countries. “I have my own companies. Kamlesh has his. I have vast real estate in Orlando, we all have assets in Europe, North America and India. But we have been taught to be low-profile,” says Mayur.

The family live in bungalows near the factory in Kakira, minutes from each other. There is nowhere else they would rather be. They have their own airstrip and private planes.

“This is utopia for us,” says Kamlesh.

Succession planning is key in ensuring the Madhvani legacy lives on. Mayur is cognizant of this truism.

“We have reached an age where we know the inevitable is coming. We have to witness the change so we can actually guide that change to some extent, rather than create a vacuum and arrive at a situation where there is no smooth handover,” he says.

“We will have to leave that to the next generation. The important thing is to make sure that whatever business that we have, we maintain a world-class lead in them. Today, our sugar factory is the most modern in the world, and more and more we are moving towards automation, and everybody is going to still need sugar,” says Kamlesh.

“In the end, you don’t work for the money, you work for the passion of it all.” The bags and packets of sugar that go out of this little town of Kakira are testament to the fertile bounties of the land, and the story of a family from India that, through enterprise, resilience and industry, found its fortune in the fields in a beautiful corner of Africa.

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Businesses Of The Future: 20 New Wealth Creators On The African Continent

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The New Wealth Creators is the first of its kind list by FORBES WOMAN AFRICA. Herein is a collection of female entrepreneurs on the African continent running businesses and social enterprises that are new, offbeat and radical.

These 20 women have been selected because they have created significant impact in their respective sectors by transforming a market or company, or innovating a product or service, and are pioneering their organization(s) in generating new untapped streams of income.

These women come from across the continent, from the villages and the suburbs, and are in their 20s, 30s, 40s and 50s. They have all adopted sustainable development initiatives in one way or another to help solve Africa’s problems.

They may be wealth creators but their businesses, ironically, did not stem from a need to make money,  but rather from the need to solve Africa’s persisting socio-economic challenges.

 Economically empowering women has shown to boost productivity. It increases economic diversification and income equality, in addition to other positive developmental outcomes.

Simply put, when more women work, economies are likely to grow.

FORBES WOMAN AFRICA put in months of rigorous research, searching near and far for these inspirational entrepreneurs.

We took into account their business model, new ideas, potential, struggles, social impact, growth, influence, resilience and most importantly, their innovation.

Speaking to FORBES WOMAN AFRICA last year at the BRICS summit in Johannesburg, South Africa’s Minister of Science and Technology, Mmamoloko Kubayi-Ngubane, said: “Innovation [is] becoming the cornerstone for our economy going forward.”

As Africa’s population is reported to increase by 53% by 2100, according to the United Nations, new solutions must be created in order for us to keep up.

One question remains: can Africa translate its significant population growth into economic development, and invest this wealth to improve the quality of life?

Entrepreneurship could very well be the answer, or at least, one of the answers.

Last year, the Founder and Chair of the Alibaba Group Jack Ma paid Africa a visit to discuss tangible investment and technology development.

He encouraged African entrepreneurs to take giant leaps in solving the challenges facing the continent and to take advantage of the digital economy.

From left to right: Rachel Sibande, Arlene Mulder, Miishe Addy, Sarah Collins, Dineo Lioma, Jessica Anuna. Picture: Motlabana Monnakgotla
Assistant Photographer: Gypseenia Lion

He said that opportunities lie where people complain.

And these women, through their businesses, have identified just that.

Vijay Tirathrai, director of the Techstars Dubai Accelerator, shared the same sentiments with FORBES WOMAN AFRICA.

“The new wealth creators, for me, are entrepreneurs who are very conscious about finding solutions in the market place, but from a lens of having social impact or having impacted the environment,” he says.

Tirathrai believes that while servicing consumers, new wealth creators are also “making a safer and a greener planet in the process, eliminating diseases, improving health conditions and advocating for equality for women”.

Women on the African continent have been making headway as drivers of change, and in many ways, they embody new wealth.

They are the true wealth.

As FORBES WOMAN AFRICA, we seek to celebrate such women.

Through this list, money is no longer the central indicator of new wealth creation.

It is about job creation, contributing to healthy societies, recycling waste, giving agency to those who are financially excluded and developing solutions for some of the socio-economic problems we grapple with.

These women may all come from different places but they are bound together by one common thread, and that is the thread of new wealth creation.

This compilation is innovative, exciting, inspiring and shows what businesses of the future may look like.

Meet the FORBES WOMAN AFRICA New Wealth Creators of 2019.

The list on the pages that follow is in no particular order.

-Curated by: Unathi Shologu

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The Monk Of Business: Ylias Akbaraly Talks About Secret To Success And Plans To Take Africa With Him

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It’s a gloomy Monday afternoon in the leafy Johannesburg suburb of Greenside, South Africa, but inside the photo studio where we are, the mood is festive as Madagascar-born Ylias Akbaraly transforms himself from a humble, down-to-earth entrepreneur in modest casual wear into a stately capitalist wearing a nifty-grey Italian designer suit, dark tie and light-blue shirt.

Madagascar’s wealthy businessman, who estimates his worth at just over a billion dollars, has come to share his story of how in under 30 years, he turned a small family business with a turnover of almost $34,000 and employing 20 people, to an empire with revenue expected to exceed $265 million in 2019 and employing 3,000 staff.

The multinational conglomerate that he created through discipline, hard work and seizing opportunities, now has tentacles beyond his island state extending to Mali, Ghana, Mauritius, France and soon the United States (US) and Canada, to name a few. 

A phone-call to his parents was all it took for the silver fox to embark on this transformative journey.

The ebullient 59-year-old describes the moment: “It was a very special situation. I was doing very well in the US, I was living in California – can you imagine, beautiful state, beautiful weather, good friends. I could work there. I had some opportunities to work at the Bank of America at that time, so I called my parents and said I am going to stay in the US, it is better.”

His parents were saddened by his decision, they asked him to return and join the business.

In 1992, he did.

“I decided to come back and be with the family and thank God I decided to come back. I don’t regret it, I am very happy, and they were very happy,” the man who calls himself a spiritual person tells FORBES AFRICA.

On his return, Akbaraly worked for Sipromad, a small retail business focused on detergents that his father, Sermamod, the son of Indian immigrants, established in Madagascar’s capital, Antananarivo, in 1972 after a stint selling shoes, shirts and ties.

Warmly, Akbaraly says: “I came back, I saw a very small business, but my parents were happy, they had a very peaceful life, and things at home were very nice and joyful.

“I worked with my father, I assisted him, I wanted to change things but I was facing a generational conflict in business. But my father is very intelligent so step-by-step he let me change things.”

Full of fresh ideas from his time spent working and studying in both France and the US, Akbaraly began to give his personal touch to Sipromad. He created a team, and hired new people and professionals.

The company started doing a lot of research; it went to see some local suppliers who asked Sipromad to change the packaging, pricing and color of its products, which it did. It extended its product lines.

For example, instead of offering its products in big boxes, it offered them in medium and small, so that it could target different consumers, says the man known as one of Madagascar’s wealthiest. 

“At the same time we had our ear to the ground, we went to see retailers and our customers to find out what they wanted, as the buyer is king,” Akbaraly adds.

From this exercise an important lesson was learned.

“You have to adapt your product to the market, this is the base of an entrepreneur, to adapt his way of doing things.”

Through these changes, the business started growing its market share and diversifying. It now operates in several sectors including broadcasting, agribusiness, real estate, technology, finance, renewable energy, tourism, aviation and industry.

Akbaraly, a staunch believer in ‘free leadership’, becomes animated when he explains how Sipromad was able to see opportunities in these sectors.

“It is a question of opportunities, it is a question of courage, I believe a lot in teamwork because with my colleagues, we talk, we debate, we change, we decide together.”

“I believe that business is a creation,” he adds. To explain his point, he draws an analogy to an artist with his palette, who mixes his paint as he sees the potential beauty it can create.

Like the artist who mixes his colors, business is a creation of the opportunities you take, reckons Akbaraly.

“This is why understanding the market, understanding what is going to happen in five years, is important so that you can take decisions when you have opportunities in front of you, we are very proactive, very fast in taking decisions and we are not scared, we are not afraid because we work very hard,” Akbaraly says.

The rationale for diversification 

What is striking about the clusters Sipromad operates in is that they are vastly different.

Akbaraly claims the rationale for this is that it comes down to the businessperson you are: “There are two types of businessmen. Some prefer to stay in the same sector, to invest in the same sector and develop in the same sector, to integrate. Our strategy was diversification. We thought about it and the outcome of our discussions and debates was to diversify the business as it protects you if you are facing problems in one sector.”

The architect of this multi-sector business also suggests the market demanded it: “Today, when we see how we became big and how we became so strong in business, it is because we diversified our business for different markets.

“Now things are changing because of this diversification, now we can synergize because sometimes our customers are interested in detergents, tobacco, soap, so we can synergize and propose many products to one customer because of our diversification. This is a big advantage because one customer is able to buy products from different sectors of our company.”

Reinvesting profits

The growth was funded by reinvesting a 100% of the company’s profits back into the family empire, explains the mogul with an international outlook.

“When you don’t distribute your profit it means your profit becomes a strength for your company… when you show the bankers that your money is reinvesting and you don’t distribute your dividends and you tell them, ‘ok we have this type of investment, we can bring 30%, we can raise 70% from you’, it gives our financial partners very big security and they follow us. this is how we raised money to reinvest, diversify and buy equipment, buy raw materials and increase our business.”

‘Reputation very important’

But it wasn’t just Sipromad’s shrewdness in capital raising that allowed it to expand but its reputation.

Candidly, Akbaraly says: “We are very careful about our management. Reputation is very important, because of our serious work, our engagement, our products, our customers, our suppliers, we created a name and when you do that, you create your brand, and because of that, when foreigners come to invest in Madagascar, they come to Sipromad.

Those that have partnered with the company include Orange Money in mobile banking, Italy’s Tozzi Green in hydropower, Brink’s for the transport of money, and Apple, to name a few.

Last year, the global company did a joint venture with one of Morocco’s largest banks, Banque Centrale Populaire, to buy Mauritius-based Banque des Mascareignes and its subsidiary Banque des Mascareignes – Madagascar.

Analogue to digital

Akbaraly says the company’s reputation led to its partnership with Rohde & Schwarz based in Munich, Germany, and its purchase of Thomson Broadcast. These deals catapulted it to another level.

Akbaraly, with fervor, explains further: “As we have a very strong IT department, we set up Broadcasting Media Solutions (BMS), which specializes in broadcast, because of our reputation, we were approached by electronics group Rohde & Schwarz. 

“They came to us and told us ‘we know you have a very serious business, you have a very good maintenance team, do you want to work with us in Madagascar to sell our products in broadcast and maintain them?’ Of course we did!”

From Madagascar, Sipromad partnered with Rohde & Schwarz in Mauritius and Morocco and subcontracted for the electronics group after it won a tender in Zimbabwe and Ghana.

In the process, Sipromad became a player in the broadcasting space. In 2018, BMS bid for a contract in Mali for the deployment of a nationwide, end-to-end digital terrestrial television (DTT) turnkey roll out, it lost to France’s Thomson Broadcast. Refusing to give up, Akbaraly discovered Thomson had financial problems and decided to buy it.

Thomson not only allowed Sipromad to expand into Mali but transformed it to a truly global business with operations in France, Israel, Cape Verde, Bangladesh, India, Russia and the United Arab Emirates.

Akbaraly says it is looking to expand to Pennsylvania in the US, to Canada, Angola, Sierra Leone and South Africa. In Africa, it plans to migrate countries from analogue to digital broadcasting.

The visionary says Sipromad’s dream is for a pan-African company to become a leader in broadcast.

But Madagascar will always remain his core. Full of love for his homeland, he speaks highly of it: “It is my center of energy, we call it plasma, I am here because of Madagascar, it was the source, the beginning, the start and my grandfather taught me, my mother’s father [who said] ‘don’t forget Madagascar because you have been protected by the flag of Madagascar, Madagascar was your protector, do the best, develop your business all around the world’, but the source, the energy, the key, the chi is Madagascar.”

Balanced life

The father of four believes his success comes from living a balanced life, surrounding himself with the right people, being spiritual and positive.

“If you want to be successful in life, you have to create positive energy, how you create it is according to your behavior, according to what you do, how you behave with others.” He reckons the energy was passed on from his family through education, their good attitude and transparency.

The martial arts veteran follows a very strict routine. It’s the reason he has been called the monk of business.

“My life is very well-organized, because I wake up in the morning between 4AM and 4.30AM and pray; spirituality first, then meditation, yoga, and take some water, fruit and then I go for my sports, usually I start at 6 o’ clock, for a minimum of one hour a day and then I go to the office.

 “When you’re at a certain level of business, you have to be very well-organized, you cannot afford to go outside in the night to clubs, to sleep late. This is not possible, otherwise in the morning, you cannot wake up early, your day starts badly… that is why one day, one of my very close uncles told me ‘your life is like a Buddhist life, it is like a monk’. I think at a certain level you need to have this type of life. I don’t drink alcohol, I don’t smoke, and I don’t eat meat.”

Philanthropy, education and inclusion

It is Akbaraly’s deep spirituality, love for his country and sense of justice that led him to use his wealth for the greater good of humanity. In 2008, he and his Italian wife, Cinzia, who shares and developed his spirituality, founded the Akbaraly Foundation.

The idea was conceptualized while Cinzia was in hospital for cancer. She wanted to do something for Madagascan women because they are the foundation of life, the center of energy, the plasma of the world, says Akbaraly.

In Madagascar, they set up prevention centers to assist women with breast and gynaecological cancer.

The country is among the poorest in the world, it saddens the philanthropist when he reflects on it:

“We are not happy because when you see people you know that are not in a good situation, they don’t have shoes, they don’t have enough food… you need justice, life needs to be fair. My dream, and I hope it will materialize, is to fight against poverty, to give a better life to our population so that they can go to school and have hospitals.”

It is for this reason that the foundation’s aim is to fight against extreme poverty. Its projects extend to health, education and sustainable development.

“Right now, we are in discussions in the US with MIT [Massachusetts Institute of Technology]. We would like to sign an agreement between MIT and Thomson, and one university of IT in Madagascar, to offer our young generation of Madagascans IT and maybe send them abroad,” says Akbaraly, who is a firm believer in the power of education.    

In countries where Sipromad operates, it prioritizes corporate social investment. In Mali, for example, together with the government, it is investing in radio to transfer education to parts of Mali, Akbaraly says.

The foundation also makes contributions. In Rwanda, for example, it is contributing $100,000 to the launch of new hospitals, says the businessman.

His sense of justice doesn’t just extend to the foundation’s projects but also to his own organization.

Women and men are paid equally for the same work. More and more women are being placed in executive positions because they are very good, Akbaraly says.

His fight against poverty lives out in the projects his company chooses to focus on.

“That is why we are investing a lot in the industry sector; we just built the [Orange Telecommunication] Tower,” a 33-storey headquarter building, the tallest in the world’s fourth largest island, and known as the “pride of the nation”.

“We are doing so many investments, we hire people, we give them jobs. We are, right now, in another project for real estate, what we can do is to invest, to hire people, to fight against unemployment, to give them a chance to buy things, to go to the restaurant, to have good food and at the same time with the profit to share in the project of CSI, this is the positive energy, this is the karma, this is important in life because in life you have to be fair, you cannot accept that some people are in this situation while others are in a better situation,” Akbaraly reflects. Throughout his career, he has received accolades. The one he is most proud of is the Pravasi Bharatiya Samman from India in 2009.

Succession planning

Akbaraly is under no illusion he will hold on to power forever. He is hard at work preparing the next generation to take over Sipromad, because in a few years’ time, he wants to do something else, he tells FORBES AFRICA. “I want to do more for others. Really to share with others,” the monk of business says with a smile.

Additional inputs:

“Ylias Akbaraly’s reputation precedes him,” says Nathalie Goulet, a member of the French Senate and Former Vice Chair of the Foreign Affairs Committee. Goulet says the work Akbaraly does “has crossed oceans and France admires him. He knows how to share his knowledge and is a special kind of businessman”.

Goulet lauds Akbaraly’s altruistic approach to business, in particular his relationship to the youth and refers to him as “socially responsible and someone who loves his country very much”.


Nathalie Goulet, a member of the French Senate and Former Vice Chair of the Foreign Affairs Committee. Picture:Supplied

“He is someone who is open to the world. The personal touch he brings to his approach makes him unique. You can tell he loves his family, and society,” she says. 


Akbaraly and Philippe Douste-Blazy, the Under-Secretary-General, Special Adviser on Innovative Financing for Development in the United Nations, have forged a friendship over the years. “Ylias is a self-made millionaire who started from humble beginnings,” Douste-Blazy says. “We’ve had many interesting conversations about geopolitics and other trends around the world.”

Douste-Blazy talks about Akbaraly’s humility and how he lets his work speak for itself. “He is very discreet. When you see him walk down the street, he is not loud about his wealth. He walks freely without guards or expensive cars.”


Philippe Douste-Blazy, the Under-Secretary-General, Special Adviser on Innovative Financing for Development in the United Nations. Picture:Supplied

Douste-Blazy expends that Akbaraly’s business strategies have captured the attention of many.  “Akbaraly is respected in France, his acquisition of Thomson [Broadcast] was very important….The assets that he has acquired show him to be a smart businessman.”


“I have much respect for my friend and peer Ylias Akbaraly. He is the textbook definition of a visionary entrepreneur. The transformation of his group of companies was single-handedly spearheaded by him.

“From their international expansion to endeavors in tourism, manufacturing, energy, real estate, they were all strategically invested by him. There’s much to take note of in this story.

Mohammed Dewji, CEO, MeTL and Africa’s youngest billionair as per FORBES.

“What many may not know is in addition to his many accolades, I must say his piety seeps through all his endeavors, both professionally and personally. His strong faith has propelled him to be even more grounded and thus become the successful businessman he is today.” – Mohammed Dewji, CEO, MeTL Group, and Africa’s youngest billionaire

-With inputs from Unathi Shologu

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