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From Rock Bottom To Rolling In cash

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He appears to be soft-hearted behind his infectious smile, but this is a steely franchise mogul who has survived being stripped of all his assets.

On a gloomy day, as gloomy as his worst day, we arrive in Mamelodi, Pretoria, South Africa’s capital, to meet Itumeleng Mpatlanyana.

At the corner of Shabangu and Maake Street in Mamelodi West, is a shisa nyama (township braai restaurant) made with a shipping container painted shocking red. This is Nkukhu-Box, one of his many businesses.

The atmosphere is vibrant. There is deafening house music playing at the restaurant – we had to ask people to turn it down. The street buzzes with taxis and hooting cars.

Finally, 40 minutes late, a white BMW sports car pulls up. It looks out of place, as well as tardy.

A short and soft-spoken gentleman, in a white shirt, emerges. Mpatlanyana, the food man, is ready to speak about his worst day.

For someone seen as successful, it comes as a surprise that seven years ago Mpatlanyana found himself sitting on the floor of his near empty house. The only thing he was able to save from the repossessors was a painting on the wall.

“There was one painting that I bought when I was a student. I actually begged the guys not to take it and I still have it today,” he says.

“It is a happy colorful painting. When you look at that painting in the mornings, it gives new life and meaning. So that is why I begged the guys not to take it. They took everything, but that painting was the only survivor that day.”

This was how bankruptcy felt.

It all began when he was 14 years old, growing up in the township of Embalenhle, in Mpumalanga. He had started a lawn-mowing business in his neighborhood at weekends. His motivation was money for a nice packed lunch.

“Having a tastier lunch meant that I could hang out and trade my lunch with more privileged pupils who were perceived as being cool at school.”

From rock bottom to rolling in cash

While his fancy lunchbox brought him a sense of belonging, his business brought a sense of wealth. He branched out into the food business selling cheese, polony and bacon throughout high school.

With a taste for business, Mpatlanyana then studied a BCom in entrepreneurship at the University of Pretoria.

As a student he sold beanbag furniture to students. He also bought his first car – a 1979 VW Beetle – that he used to transport students.

“The business was successful. At one point I had 20 apartments under my portfolio, but none were owned by me,” he says.

The money rolled in and the friends came with ideas.

In 2008, he and his friend bought Fashion TV Café, a French television channel franchise. He thought it was gold for the grandchildren.

“When we became Fashion TV Café’s first young black franchisees in the world, we were in our twenties and it was a hell of an achievement,” says Mpatlanyana.

It all seemed plain sailing; but the exorbitant rent and overhead costs were to make a meal of them. Mpatlanyana lost his R3.3 million ($252,000) investment. The thought of losing everything was always his biggest fear.

Soon he was to experience his worst nightmare.

“That day I thought, colorful s*** just hit the fan, and it is looking beautiful. I was accepting defeat, because I knew it was coming and I knew I could do it again.”

First, the repossessors came.

“Those guys park their truck and they knock at your door, thereafter they just walk in and they just start taking stuff without negotiating, because it’s a done deal, the courts have given them the order,” says Mpatlanyana.

“I actually helped them to move the furniture, because I tried to make the experience as comfortable as I could. I was not fighting them, I wasn’t crying. I was like, ‘It went bad sharp-sharp, moja (fine), take it.’”

Reality kicked in when he was alone and bereft.

“The tears came later, after they left, when I was sitting on the floor.”

“The remote control is gone, the TV is gone and the ironing board is gone. I was just sitting there asking myself, what was I going to do next? But I knew then, that I could do it again bigger and better,” recalls Mpatlanyana.

“That was the lowest moment of my life. I would sit on the floor with no furniture or anything, wondering where did it all go wrong? At one point you were rolling in cash and all of a sudden, you have hit rock bottom,” he says.

The fear of people was stronger than the fear of loss.

“It’s was not even about the money, it was about the people that knew me and how they would look at me. A few weeks ago, you had this upmarket restaurant and the ladies love you, then all of a sudden, you have zero.”

“How do you even get your friends to come visit you again, if you have no furniture in the house? Your bank accounts are all cleaned up,” says Mpatlanyana

A phone call changed his fortunes four months later.

“I don’t know whether to call it luck or whether it was just my work ethic that came through for me because a customer who happened to be a coalmine owner who was looking for a BEE partner decided to call me. Instantly, I became part of a small mine operation,” Mpatlanyana says with relief in his voice.

”A few weeks ago, you had this upmarket restaurant and the ladies were loving you, then all of a sudden, you have zero.”

“He could have called any other black man, but he called me, because he saw my work ethic and the amount of hard work I had put into FTV Café.”

His journey with the mining company was not long. Four years later, the coalmine was sold. He went back into the food business; his first love.

But this time, he was to do things differently. He would become the franchiser instead of the franchisee.

Spykos Foods was born in 2011, with R1 million ($76,000).

He founded a franchise that was about taking traditional township shisa nyama, fish and chips and bunny chow, into major malls and shopping centers in South Africa.

“You have to have a strong character to try again. I didn’t allow that to discourage me. I got up and I tried again.”

“I still went back into the food industry, the experience and what I learned out of the situation helped me to come up with the next brand. I decided to start my own brand, where I make my own rules and I don’t have to be dictated to by any franchise or international person that is in Paris,” says Mpatlanyana.

Forty Spykos Foods franchises were established around the country, but some collapsed.

“The stores started to close down due to several factors, but the main [reasons] were the escalating shopping center rentals, increase in food prices, especially fresh potatoes as this was our main product line.”

“There were also major competitors dominating the market… Some not so well-skilled franchisees and the lack of adequate infrastructure,” says Mpatlanyana.

Even with the punches that he took, he is adamant he’ll become a franchise mogul.

He launched his first Nkukhu-Box, selling chicken, in August 2016. It is a business that mitigates the rent and overheads of Spykos Foods with a red shipping container that doesn’t cost much.

To date, he has three stores in South Africa and plans to expand to Zambia, Namibia, Lesotho and Swaziland this year.

Mpatlanyana claims that his business is worth R6.5 million ($497,000).

“Being a young black entrepreneur has immense challenges in the private sector. I realized that in business you need to find a business model that doesn’t rely on too many external sources,” he says.

Seven years on from an empty house and empty bank account, his worst day, in many ways, made him.

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Entrepreneurs

Packing Light In School Bags

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Former South African rugby star John Mametsa provides alternative energy solutions for the state. With his wife Tumi, he says their future in the business is bright.


In his prime, former Blue Bulls winger John Mametsa had rugby fans screaming in delight at his try-scoring exploits at Loftus Versfeld Stadium. Between 2001 to when he retired in 2010, he had brought smiles on people’s faces.

Hidden beneath the rugby bravura on display on a weekly basis were Mametsa’s entrepreneurial exploits, which led him to co-found Soltech, a solar technology company he started with his wife Tumi.

Soltech has bridged the gap between solar technology and user-friendly consumer products by creating school backpacks, outdoor umbrellas and lifestyle bags custom-fitted with solar power.

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The smiles are back but Mametsa has brought them in a different form.

Soltech’s main aim is to help companies achieve their corporate social investment targets and make a real difference in the lives of school children who might not have electricity at home, or whose access to electricity is limited.

“Generally, I love giving back. Just to see the kids smile brings joy to me,” Mametsa says.

“It is the best space I could have asked for. Other than when I was involved in rugby, this is the best thing I could have ever been a part of.

John Mamemtsa. Picture: Supplied

Putting smiles on kids’ faces is the best thing. Because we are dealing with children, we have aligned ourselves with people that want to make a difference.

“We don’t stop at just giving them the bags where they can charge phones and study at night but we also educate them about the social ills that come with roaming on the internet and social media.”

During this period of Eskom blackouts, uncertainty about South Africa’s energy and a widening chasm between the haves and have-nots, he says Soltech’s products make a difference in the lives of ordinary citizens.

In a sense, they’ve taken the might of solar technology and put it right in people’s hands. The school bags come with a solar-powered battery, which has a night lamp and cellular phone battery charger installed.

“With everything that’s going on at Eskom now, they (citizens) are using millions of liters of diesel per month, just to keep the lights on,” Mametsa says.

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“Hence, it’s coming back to hit our pockets and they (Eskom – South Africa’s national energy provider) are raising the electricity prices again. Such things we have to read about so that, as we grow, we educate the people that we are selling the bags to.

“At some point, you need to convert [to reusable energy sources], you need to start using solar energy. We are still fortunate that there’s an Eskom in the first place. What about those countries that don’t even have electricity at all?

“Yes, we have power cuts but the people that really need the bags are people in the rural areas.”

Admittedly, Mametsa was the pretty face and Tumi conceptualized the idea when they started. But their partnership was perfect in more ways than one. Tumi, just like her husband, had a massive entrepreneurial drive.

While Mametsa was playing rugby, he would dabble in taxi and printing businesses – an uncommon trait among sportsmen and sportswomen who are at the peak of their powers. Tumi was no different. As a student, she would sell hair and cosmetics products, something that sharpened her business senses.

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And despite a successful 11-year career in corporate as an accountant and financial manager for companies such as Alexander Forbes and the Film and Publication Board, Tumi took a bet on herself and dedicated her time fully to building Soltech.

The result was that, in just the company’s second year, they have signed a memorandum of understanding with Finland solar technology company Tespack. Tespack founders Caritta Seppä and Yesika Robles were last year named in Forbes ’s 30 Under 30 Europe.

The joint venture will see Soltech come out, among other things, with a solar-powered, fast-charging power bank, which should totally disrupt the smartphone accessories market.

Tumi Mametsa. Picture: Supplied

“There’s going to be skills and knowledge transfer,” Tumi says.

“The DTI (Department of Trade and Industry) is also backing us on the partnership because we need them and their funding to assist us. We will be hiring South Africans to work the machinery, which was something that was very attractive to the DTI.

“The Tespack partnership confirmed my belief that our company could grow from a small tree to a forest someday. Once we manufacture in-house we can streamline the process. And there are so many other ideas for products I have, such as ladies’ handbags and stuff.”

Here at home, Soltech has partnered in CSI projects with Liberty and Exxaro and they hope to grow their client base in the next couple of years. It is a huge endorsement of their products and should see them salve some of the hurt from the country’s electricity crisis, especially to those who need it the most.

-Sibusiso Mjikeliso

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‘Worth Millions And Billions’

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Terence Terenzo, the award-winning South African hairdresser and founder of hair salon group Terenzo Suites, on his biggest investment decisions and blunders.


What is your investment philosophy?

One of my philosophies is to really analyse ‘is this an investment or is it a money pit… Are you sure you got a good investment and not a liability?’… Over the last 10 years, I’ve tried to invest in things that don’t absorb all my time and energy.

So if someone were to say to me, ‘you can work your butt off seven days a week and we will give you a million rand a month, or you can take it super easy and do the absolute minimum but you can have R400,000 ($27,700) a month’, I would rather take the R400,000 because that would free me up so much more.

I would have time to do things that are important and other projects. So, for me, it is about setting up passive income businesses instead of creating businesses that need huge amounts of management.

What are some of the big investments you have made over the years?

Most of them were in property but this, Terenzo Suites, is one of the biggest investments I have ever made. It was many many millions. And then on the stock market, I’ve played around on the Johannesburg Stock Exchange where we have invested quite heavily. I would use it, then look at the market and sometimes pull the money out and move it. I have also invested in Naspers.

Have you had any regrets?

If any entrepreneur tells you that he hasn’t had that [an investment blunder], he is lying. So, what happened was I bought a property in 2008, just before the [recession]. I was stuck with it for years and even when I sold it, I sold it many years later at the same price I bought it.

I bought it in an absolute inflated stop end, and it was really at an all-time high and I had to sell it at an all-time low… But the main thing for me about those kind of things is that you learn from them and you must not beat yourself up for too long.

Try and see what you learned from them.

Why did you invest in the hair business?

I think the hair industry is going to explode in South Africa and the whole continent, if you just think of the possibilities of wigs, hair pieces, hair colors and relaxers. Millions of women before weren’t so worried about their hair but as the world has changed so much, all of them want to look amazing and they want to look current, fresh, sexy, and that is all a part of the hair industry.

What should you consider first before you invest in your hair?

I think the one thing is to have a professional conversation with someone instead of just doing your own thing and, usually, hairdressers are quite happy to consult with you without charging you before you make a serious investment in hair pieces or wigs.

How big do you think the hair industry is in Africa?

I think it is worth millions and billions… and I think it is an undiscovered industry that is still going to explode. I don’t think we have scratched the tip of the iceberg with this.

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A Germ Of An idea

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The microbiologist-turned-entrepreneur Babajide Ipaye started making good-looking shoes to fit his size 48 feet but decided to create them for others as well.


Selling shoes was probably the last thing Babajide Ipaye, a microbiology graduate, envisioned doing. But when by the age of 10, he was already wearing his father’s shoes, a size 44, he knew that some day that he would step in that world.

The only child of his parents, who passed away in a car accident when he was only 11, Ipaye was raised by his grandparents and extended family members who shaped the early years of his life.

“I had a lot of people who were trying to nurture me and they had different professions. So for example, one was an artist and I was endeared to him, another one was a medical doctor, so my granddad wanted me to study medicine and another uncle was a computer scientist, so I was kind of confused growing up. I wasn’t sure what I wanted to do, so I kind of lived the life of almost everyone that influenced me,” says Ipaye.

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That confusion helped Ipaye cut his teeth in various industries early on in his career. His medical doctor uncle influenced his career as a microbiologist where he worked with Ideas International Bio Technology Services, spending his days cleaning up oil spills and bacteria.

Then followed a stint in Information Technology (IT), a move also inspired by another uncle, where he worked with Tranter IT Infrastructure Services and Computer Warehouse as an analyst deploying managed technology services for multinationals like Guinness, Total and KPMG.

“At this point in time, IT was very hip and we happened to be one of the early pioneers in the tech space which was a very exciting time and considering where I was coming from in microbiology, it was a new field for me, I was working with multinationals and the exposure was amazing, it gave me a very broad sense of how organizations function.”

But Ipaye soon became dissatisfied with being put in a silo. There was too much structure and rigor due to the size of these multinationals and he became bogged down with a lot of systems and processes, which ultimately stifled his creative juices. His solution was to start his own IT company, Torque Technologies.

The company began providing IT equipment and technology services in its early days to multinationals before quickly creating a niche for itself in the fiber optics space. In early 2003 to 2005, the Nigerian telecoms era had just started booming and Ipaye and his partner saw a first-mover advantage in fiber optics by providing training to firms in Nigeria, which they did for the next 10 years.

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By 2015, Ipaye decided he wanted a new challenge outside the IT world. After parting ways with his partner, he began to ponder about his life-long struggle with footwear.

“So I said to myself ‘why don’t I make my own shoes?’ So I went on the internet, did a bit of research and came across a school in the Netherlands called SLEM. I called them up and found out about the shoe-making course and I said since I was on holiday, why don’t I take some time off the business and explore how to make my own shoes and I went to the Netherlands.”

Keexs was born. The goal was to make shoes that fit Ipaye’s size 48 feet but also looked aesthetically pleasing. But making shoes for him alone would prove to be too costly.

Ipaye decided to make shoes for others as well. He would focus on the athleisure market, which is a portmanteau of ‘athletic’ and ‘leisure’, a market that has grown to the stage where it is no longer a trend but a mainstay in Nigerian fashion.

To stand out in the competitive footwear market, Ipaye decided to add some African elements to his innovative footwear brand and focused on outsourcing the production to a factory in the Netherlands while he focused on the product and design to save on cost.

The aim in the long run was to move production to Nigeria where he could fulfill the brand’s social mission of providing employment and skills training to unemployed youth. However, to make the business viable, he had to make a minimum of 1,000 pairs of shoes to achieve economies of scale. Next came the challenge of securing startup funding.

“From my previous experience of starting my technology business in Nigeria, I came to realize that the cost of funding in Nigeria is very high and also there are a lot of businesses chasing funding and the risk level of most potential investors in Nigeria is very conservative and they don’t want to invest in stuff they are not sure about.

“So I read about crowdfunding and consulted a company in the Netherlands and I came across a site called kick-starter which is a US-based platform that offers a global crowdfunding platform to innovative ideas and projects, hence we started the first innovative and social focused brand in Africa,” says Ipaye.

In just over two years Ipaye has managed to grow the business through leading e-commerce sites like Jumia and Konga as well as via its own website which receives orders from countries around the world. The shoes sell for anywhere from $40 to $60, with over 8,000 pairs of shoes sold till date.

Keexs has about 18 outlets in Nigeria with retail partners in Kenya, South Africa and Guadeloupe and Nairobi.

The company also sells through social media channels where they boast over 15,000 followers on Instagram. The long-term goal for Ipaye is to secure enough funding to set up a factory in Nigeria, which he is looking to raise through an amalgamation of funding sources including grants and loans.

“We realized very quickly that economies of scale is critical to drive the growth of this business therefore there is a need for a lot of capital. There are four sides to this chain; production, design, distribution and retail. The problem with a lot of businesses in Africa is that they are expected to do everything from start to finish along that entire value chain and what that does is, it stifles the growth of the business,” says Ipaye.

The big-time hit when CNN profiled Keexs on its African Voices show. Since then, they have managed to establish themselves as an innovative social brand focused on empowering unemployed youth in Nigeria. Next on the to-do list for Ipaye is establishing a production line in Nigeria, and then taking his brand global.

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