The tiny country of Rwanda is now producing factory-fresh Volkswagen cars from its rolling hills. Next up are ride-hailing and public car-sharing services by the German carmaker.

“Africa doesn’t need to be the dumping ground for second-hand cars or second-hand anything, because in the long run, you end up paying a higher price anyway. So if you can pay a high price for second-hand, why not pay a high price for something new?”
These powerful words were by Rwanda’s president Paul Kagame in a speech delivered at the launch of the Volkswagen (VW) assembly plant late June in the country.
The German carmaker, which now has a presence on the rolling hills of the Kigali Special Economic Zone, is the first international automobile giant to invest in Rwanda.
It will have a capacity to produce up to 5,000 cars with a starting price of $23,000.
President Kagame observed that Africans deserve better and this is one way of showing how they can afford it.
“In the medium-term, the only way for us in East Africa to move up the industrial value chain from assembly to manufacturing is to build an integrated regional manufacturing base.”
For this to be achieved, he underscored the need to shift from the logic of competition to one of cooperation but also fuse the two “because when they are put together, everyone gains”.
<a href="http://www.forbesafrica.com/focus/2018/03/27/african-car-no/" target="_blank" rel="noopener">READ MORE: The African Car That Is No More</a>
Thomas Schaefer, the Chairman of VW Group South Africa, revealed that opening an assembly plant in Rwanda aligns with the firm’s strategy to strengthen regions, focusing on new and upcoming markets.
Schaefer admitted there are challenges but emphasized the project is bound to succeed.
“Having worked with emerging markets for a large part of my career, I can categorically say that Rwanda stands out as a country where it is about what we can do to make a project work rather than listing all the obstacles as to why something would not work,” he said in an interview to CNBC Africa.
VW joins Rwanda’s market at a time when the country is conducting the ‘Made in Rwanda’ program to support local industries and promote consumption of locally-made products.
Economic analyst Kenneth Agutamba believes VW’s entry into Rwanda lays the groundwork for other brands to tap into the market.
“It’s a big win. Every time a major international brand gets into a country, it boosts the confidence of other potential investors,” he tells FORBES AFRICA.
He adds that the investment is an opportunity for job creation in the country.
<a href="http://www.forbesafrica.com/life/2018/01/11/worlds-popular-cars-2017-included-fewer-cars-suvs/" target="_blank" rel="noopener">READ MORE: The World’s Most Popular Cars In 2017 Included Fewer Cars, More SUVs</a>
“A single car has 30,000 parts and putting them together requires a minimum of 20 people. So it’s a very labor-intensive job.”
He explains that although Rwanda is a smaller market and landlocked, it has security, and political and economic stability, among other factors rare on the rest of the continent.
“It can be a base where major brands can build their headquarters but targeting the markets around it,” he says.
Clare Akamanzi, CEO of the Rwanda Development Board, hailed the development as a very important step and a new chapter.
“The fact that Volkswagen took time to study Rwanda and found it a good business case we can invest in here, means a lot for us. It’s something that shows feasibility of such business that can thrive in Rwanda and we expect other companies to emulate,” she told CNBC Africa.
Starting next year, the company will also offer ride-hailing and public car-sharing services under the Mobility Solutions program.
Lionel Mpfizi, CEO of AwesomityLab, a local company hired to provide a mobility solution platform commended VW for its openness to local companies in an interview with CNBC Africa.
“We are very happy that VW is open to work with local companies to achieve what they want to achieve. There’s something we are bringing to the table if we are local: we have the understanding, we know the clients and we are the clients,” said Mpfizi.
&#8211; By Steven Muvunyi

IMG_6097

A Country On A Roll

Lexus launched an expensive plan to enter F1 way back in 1983. Not quite Formula One, but a project code named Flagship One which was to take the Japanese car manufacturer into a new realm of luxury to compete with the elite German marques.
It started with a simple challenge from Founder Eiji Toyoda – build the world’s best car. It culminated in the launch of the acclaimed LS 400 after a feverish five years.
The Relentless Pursuit of Perfection took $1 billion, 450 prototypes, 60 designers and 400 engineers. And the expertise of a special “Team One” unit from leading agency Saatchi &amp; Saatchi to pioneer the marketing.
The legend goes that the F1 designers rented a home in Laguna Beach to get a glimpse of the well-heeled American consumer and their motoring minds.
The project wasn’t aimed at the home market – rather the United States. And the core reason was a trade agreement between the Japanese government and US trade officials to restrict the export of less expensive models.
In an automobile version of the Space Race, Honda got into the American arena with the Acura and Nissan reached for the skies with the Infiniti.
Some reports claimed the LS 400 had better handling and performance and shockwaves rocked the Mercedes Benz and BMW camps with Cadillacs and Lincolns being traded in and German luxury vehicle sales dropping by almost 30%.
<a href="http://www.forbesafrica.com/life/2017/08/04/golden-road-ahead/" target="_blank" rel="noopener">The Golden Road Ahead</a>
By 1999 Lexus had recorded the millionth vehicle sold in the US and in 2005 there was an organizational separation from Toyota, with dedicated designers and engineers working exclusively for the brand.
Despite the fact that the Lexus offering was comparable to the German leaders and left the showroom floors with some fancy features included in the price, it wasn&#8217;t a package to get the adrenaline pumping.
The sporting badges of Merc AMG and the BMW M division had been wheel-spinning to capture the drivers who want more than a quiet and leisurely jaunt to the shopping center and certainly relish the looks and audio levels to get noticed en route.
The Japanese reply, fresh off the drawing board of the F-Sport Division, came in the form of the IS F, launched in 2007 and the much vaunted LFA – custom built to the last detail. It was only in production for two years and the allotted 500 specialized models found relatively happy homes.
“The LFA is an icon now and possibly always will be – we don&#8217;t need to replace it to keep that status. It is a car we can reference for another 25 years if we choose. Its status is assured,&#8221; said European boss, Alain Uyttenhoven.
“It is possible that we will one day create another supercar, but in my view a super high-end machine is not what we need right now.”
Enter highway left the Lexus LC 500. The concept car drew gasps five years ago and Lexus have been one of the few automakers brave enough to take a dream design to the production line.
Maybe not a supercar – the definitions vary – but not light on the wallet at a retail price of $130,000.
“Not only has Lexus delivered a design with high visual impact, it has also developed ground-breaking engineering and technology for the LC 500. This isn&#8217;t simply a car that looks good – the LC 500 has been engineered in every dimension to deliver a very special driving experience,” says Calvyn Hamman, Sales and Marketing Senior Vice president of Lexus South Africa.
And with such a long title, he should know! While sportscar designs can be hotly debated, this one is hard to ignore. It almost seems to perch on the tarmac like a squat sprinter waiting for the buzzer.
The meshed grille, like a more macho version of the Mercedes diamond front end, reaches out to you with its contoured mould. It is flanked by recessed and diminutive triple LED headlights that blend into the bodywork in a Star Wars fashion.
The “Experience Amazing” theme flows to the rear with L-shaped taillights that have an acclaimed “afterburner” effect courtesy of 80 concentric LEDs per lamp.
<div id="attachment_33715" style="width: 510px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-33715" class=" wp-image-33715" src="https://www.forbesafrica.com/wp-content/uploads/2017/09/Lexus-LC500-_7-e1506690463360-300x215.jpg" alt="" width="500" height="358" />Lexus LC 500 (Photo by www.lexus.co.za)</div>
Open the door and the interior is dashing with crisp metallic lines, the controls easily at hand and the seats firm and supportive.
But don&#8217;t plan on taking any six-footers in the back seats – like most GT cars this is really the home of Yorkies on their way to the parlor.
When it comes to infotainment systems, the cry of the decade seems to be for systems to delight a 16-year-old but take a bit of head scratching for the Stoneage.com generation.
So you may have got used to the touchscreen or the round click wheels – or even voice recognition – to command your high-tech steed.
Now we have the track-pad – very much like the device on your laptop. I’m sure it can control anything from heating the seats to ordering a hot take-away. And given weeks of practice it may feel like an extension of your left hand.
But it is finicky, to say the least, and by carelessly resting your elbow near the ultra-sensitive pad you may find the climate control battling the Arctic or iTunes blasting out from your cellphone. Fortunately there are the old fashioned knobs and switches for some of the basic requirements at the wheel!
<a href="http://www.forbesafrica.com/life/2017/07/03/porsche-panamera-kicking-ass-new-boot/" target="_blank" rel="noopener">Porsche Panamera: Kicking Ass With A New Boot</a>
The daring overall creation is wrapped around a normally aspirated 5.0-liter V8 which propels the LC to 100km/h in a swift 4.7 seconds with the most pleasantly guttural sound yet to be emitted by a Lexus. Yet not quite in the league of a Porsche 911 or Jaguar F-Type R and it only really sings at the higher revs.
What is absolutely phenomenal is the 10-speed box which is so smooth that it’s a challenge not to paddle up and down through the gears to feel the silky transitions or get an additional growl from the exhausts.
It is a hefty beast but delivers an engaging drive that sometimes sees you straying over the speed limit. And you have no excuses – the heads up display will give you ample warning.
There have also been many profit warnings in the motor trade in recent years. Lexus doesn’t disclose too much publicly about their financial operations but insiders say the division contributes a healthy share to Toyota’s bottom line.
The Group recently raised its full-year profit forecast by 16%, citing expectations of a weaker Yen. So now they say a profit of $16.8 million is on the cards – slightly down from last year.
“Our organization has been working to evolve with the changing consumer tastes in luxury,” says Tokuo Fukuichi, President of Lexus International.
“The new LC embodies a shift in forward-thinking culture, and is a glimpse into the products and experiences you can expect from Lexus in the coming years.”
South Africans will only get a fleeting taste right now. There are just a handful of LC 500s heading this way and the hybrid LS 500h is restricted to selected overseas markets.
Will the new flagship herald the next chapter in the Lexus tome and feed down the line to all the upcoming models? It has been an encouraging new beginning. &#8211; Written by Derek Watts

A Concept Car That Captivates

Just in case you haven’t noticed – the personality of the top-end sports car has changed drastically in a few short years. Size does count… and the smaller the better.
Well that’s what the manufacturers tell us as virtually every new model emerges with decreased engine size but, miraculously, better top speed, acceleration, fuel consumption and emission figures.
And the clue is in those last two words. Environmental regulations have shepherded us into a sterile new world where normal aspiration is no longer the norm and turbocharging is de rigueur.
If you are suffering from displacement envy, you could still go for a Ferrari F12 TDF 6.3-liter V12 or even a Dodge Viper 8.4-liter V10. But, I fear, they are a dying breed.
And how can you logically argue in favor of cubic centimeters when one of the fastest production cars on the planet is the Tesla Model S P100D – an all-electric family four-door sedan!
The new Porsche 718 Cayman, and it’s virtually identical topless twin, the 718 Boxter, follow the genes of the new generation and are now turbo fours rather than flat sixes and are trimmed down to a mere two liters.
In a weird way it echoes the ethos of the man who founded the company back in 1931.
“In the beginning, I looked around and could not find the car I&#8217;d been dreaming of: a small, lightweight sports car that uses energy efficiently. So I decided to build it myself,” said the late Ferdinand Porsche.
But don’t confuse economy with performance – the new 718 will whisk you to 100km/h in under five seconds and the S (with a 2.5-liter engine) shaves off another half second.
Turbo lag is fast becoming a part of ancient history and, thanks to a crafty fellow called Dynamic Boost, the new models are practically as spontaneous as their predecessors.
The Helshoogte Pass in the Western Cape linking the winelands of Stellenbosch and Franschhoek provided a fine test of the retuned chassis for dynamic cornering and the more direct steering.
<img loading="lazy" decoding="async" class="alignleft size-medium wp-image-4639" src="/wp-content/uploads/2017/04/bodrumsurf-Shutterstock-Inc-540731077-300x200.jpg" alt="" width="300" height="200" />
What you may miss are the gutsy aural tones of old and the subliminal thrust of the bigger engine. But get over it; you are helping to save the planet in a vehicle that is technically superior in every way.
So now that performance across the spectrum is merging closer and you can no longer brag about your brutish motor, we can get to the real selling point – looks.
And that can be dangerous ground. How do you compare a Ferrari 488 with a Lamborghini Huracán, a McLaren 570S with a BMW i8?
The difference I see with Porsche design is that they retain a more understated, almost sculptured design throughout the range. And that includes the more “modestly” priced 718 Cayman.
Porsche assert that the 718 embodies the shapes and proportions of legendary mid-engined racing cars like the 550 Coupé , the 718 GTR Coupé and the 904 Carrera GTS, which is all rather romantic.
Yet the new Cayman certainly catches the eye with a front end that is wider and more muscular in appearance, the narrow front indicator lights winking above the enlarged air intakes, and completed by the newly designed bi-xenon headlights with integrated LED daytime running lights.
And the derrière, which really seemed to be unfinished before, gets a major makeover through an accent strip in shiny black with the Porsche badge emblazoned on it and very fancy see-through tail lights.
The interior is everything you would expect from Porsche with all the controls (apart from the hard-to-find hazard button) at your fingertips amidst a tasteful, if safe, blend of leather and metal.
Although the familiar environment has been upgraded with new elements, the instrument cluster could have been blessed with a stronger dose of new age technology. Like the Audi TTS Coupé which has emerged with what is claimed to be the technological benchmark and is certainly impressive.
The virtual instrument cluster is in the form of a high resolution LCD screen that switches between a classic view with round instruments, to a futuristic full-screen view at a touch on the multifunction steering wheel.
It seems that some marques have remained conservative when it comes to forsaking the classic dials and embracing modern virtual displays.
Hopefully Porsche will lead the way in developing the future sports car with their Strategy 2025. The aim is to blend the history and values of the brand with innovative technologies. And they state clearly that digitalization, connectivity and, of course, electromobility will play a major role.
Let’s not forget that Porsche is one of the most profitable car manufacturers per unit in the world and makes more money for Volkswagen than the VW brand itself. Although VW sell about 25 times more cars!
In 2015, Porsche deliveries were up 19% up on the previous year with revenue rising by 25% to $3.6 billion. And in a tough year for global automakers, Porsche managed to keep the Zuffenhausen flag flying high in 2016.
Driven by Ferry Porsche’s dream of the perfect sports car, the company follows a plan called the Porsche Principle – basically to get the most out of everything.
“From day one, we have strived to translate performance into speed – and success – in the most intelligent way possible. It’s no longer all about horsepower, but more ideas per horsepower. This principle originates on the racetrack and is embodied in every single one of our cars.”
So reads the website blurb. And it is the way you feel behind the wheel of every Porsche.

Defending The Cayman

It is April 16th, 1964; the day before the launch of the Ford Mustang.
For three years, motoring mastermind Lee Iacocca had nurtured plans for his “baby” – a sleek and exciting sports car that would sell for less than $2,500.
Ford runs commercials on the three major television networks at 9.30 that night.
The next morning there is a buying frenzy at showrooms around America. Ford sell 22,000 Mustangs that day and 418,812 models that year. Wilson Pickett’s Mustang Sally adding to the equine fever.
<img loading="lazy" decoding="async" class="alignleft size-medium wp-image-4875" src="/wp-content/uploads/2017/05/Rob-Wilson-Shutterstock.com--300x200.jpg" alt="" width="300" height="200" />
It is one of the casebook success stories of motoring history. Forget the fact that it was based on the compact Falcon, the Mustang was to become the American standard. Once again, the production plant in Dearborn, Michigan was pushed to the limit.
On the famous date of the Soweto Uprising, June 16th, but way back in 1903, the company was founded by Henry Ford after a sequence of financial flip-flops in the evolving motoring world.
Even in those early days, the ability to optimize production under the stress of burgeoning order books became a part of the Ford work ethic.
Starting with the Model A, the designers energetically worked through the alphabet and the engineers and mechanics sweated blood to piece together 10,000 Model T Fords in 1909.
The basics of an assembly line were slowly developed and by 1920 Ford were turning out a million cars a year! From then on, assembly lines ruled. The 200 carmakers in the United States (US) were trimmed down to just 40 over the next two decades.
More than a half century after the first pony car stunned the US, the Mustang has arrived in full livery on South African soil – the first country to get the right-hand drive version.
Apart from a clichéd ride down Sunset Boulevard in a hired topless Stang more than a decade ago, I can’t claim to have the stallion’s blood running through my veins.
We were on a trip to interview the modest New Age guru Deepak Chopra in La Hoya and there was a certain irony in showboating in Los Angeles. It was hard to be humble when driving the new Mustang 2.3 Ecoboost convertible around Sandton streets – especially the Race Red version with black cloth roof. Although, it does snap closed in a few seconds if you are feeling the heat of glaring motorists – possibly tinged with envy.
The Mustang has often been referred to as a muscle car, but the sixth generation would definitely be earmarked for a steroids test. Angry headlights, angry grille to host the iconic emblem, and a fastback rear that screams catch me if you can.
That galloping horse, uniquely running right to left, will not only light up your life – it will light up your feet as well. A bright image of the pony shines on to the tarmac as you open the door.
You will be greeted by a stylish black and silver interior with a clinical instrument layout and a battery of controls on the steering wheel. The class and design, dare I say it, more German than American. The clumsy handbrake nestling by the passenger seat, however, is surely the relic of a bygone era.
The speedometer in the entry model reflects an optimistic ‘ground speed’ of 260 kilometers per hour (kph), and to get yourself in the right mode you can choose normal, sport, race or snow/wet. Pothole dodging would be useful addition in South Africa.
What you can’t fault the new Mustang on is being conservative with is detailed feedback. It will tell you about every facet of that churning turbocharged engine, from inlet air temperature to the air/fuel ratio. Maybe I’m not a dyed-in-the-oil petrolhead but I can’t imagine myself checking out the cylinder head temperature on the way to work.
But you are probably not all that interested in the cockpit and coachwork, or the user-friendly MyFord touchscreen, and want to know what is under that long, sleek bonnet.
Well, let’s face it, most long sleek bonnets are a lie these days. With the revolution of small turbos replacing the naturally aspirated gas guzzlers with magically enhanced power and performance, you could no doubt fit most engines into the nose of an old VW Beetle.
<img loading="lazy" decoding="async" class="alignleft size-medium wp-image-4874" src="/wp-content/uploads/2017/05/Radu-Bercan-Shutterstock.com--300x200.jpg" alt="" width="300" height="200" />
I had a nervous feeling of anticipation before flooring the right-hand pedal of the six-gear auto. In terms of stats and performance, it does not disappoint. With faultless response you are thrust back into your body-hugging seat in less than the six-second mark.
It is silky smooth and doesn’t drown out the infectious cacophony that is playing on the radio.
The fact is the 2.3 Ecoboost is a beautiful, stylish vehicle that is not really going to boost your pulse rate or adrenalin levels. Even the terms Ecoboost and Mustang don’t really belong in the same sentence – or the same world.
Or do they?
Although we might always envisage fire-breathing V8s in the lineage of the Mustang, and the pony wars with the Chevrolet Camaro, a teensy engine is nothing new for the marque.
The Mustang II, influenced by designer Ghia in the early seventies, came out with a 2.3-liter in-line four-cylinder engine because of the fuel crisis. Not exactly an Italian Stallion! The third generation in the eighties was almost killed due to diminished sales despite (or because of) the offer of the Ford Pinto pint-sized “power” plant.
Then it was back to the brawn and punch of the big guns – the 2005 fifth generation going back to the Stang shape and spirit with a four-liter basic right up to the awesome GT500 housing a monster 5.4-liter supercharged V8.
Right now, if you still have a vestige of the boy racer in you, you can opt for more ponies under the bonnet with the 5.0-liter V8 which will whisk you to 100kph in less than five seconds.
Naturally you get more of a punch in the kidneys and aural excitement than with the Ecoboost. But not, according to many scribes, matching the trembling thrills of some AMG, M and RS badges.
So, you are looking at a healthy degree of refinement since Henry cobbled together his first auto in his Detroit garage 120 years ago. It’s all part of the dream of making the Mustang a world muscle car not just for red-blooded Americans – described by one hack as putting Bruce Springsteen on stage in a bespoke suit. It’s also available in colors from deep impact blue to triple yellow.
<img loading="lazy" decoding="async" class="alignleft size-medium wp-image-4876" src="/wp-content/uploads/2017/05/shutterstock_392074144-300x225.jpg" alt="" width="300" height="225" />
By the way, that famous quote that customers can have the T in any color as long as it’s black didn’t apply to the early Fords. It was only after the elementary assembly lines came into operation and they found that ‘Japan black’ was the only paint that dried quickly enough.
While your Mustang may emanate from Flat Rock in Michigan, you are supporting a company that has massive financial interests in South Africa with plants in Port Elizabeth and Pretoria.
Now the Gauteng operation has been boosted with a $170-million investment for local production of the Everest SUV and expansion of the all new Ranger program. Creating 1,200 much needed jobs in the process.
It might surprise you that in the incestuous modern motoring world, Ford has owned four other luxury brands – Volvo, Land Rover, Jaguar and Aston Martin.
But now the largest family-controlled business in the world is much more focused – if you’ll excuse the expression. They are really built for the road ahead. Have you driven a Ford lately?

A Muscle Car On Steroids

You just got paid: your aunt asks for $50 for her routine medical check-up; your cousin needs an extra $30 for her tuition fees; your mother needs $20 for a new dress; your landlord is knocking on your door for his $500. Your remaining $200 is not enough for your car and insurance, young brother’s school trip and for many others who yearn for a better life through your bank balance.
This is the story of black tax that millions across the continent live with. The question is, with economies worsening, is this family support tenable, archaic, or an important part of modern African culture?
Either way, many of those fortunate to be working end up in debt because of the demands of their families.
In these tough times, debt is a growing problem. In South Africa alone, 6,000 people apply every month for debt counselling – simply put, lessons on how to get out of debt.
The South African Human Rights Commission (SAHRC) confirmed over half of South Africa’s consumers are carrying too much debt. For many young, rising professionals, black tax may not be the sole reason – but it doesn’t help.
Paul Egan, Managing Consultant at UCT Unilever Institute of Strategic Management, says black professionals are suffering more than most in these difficult times.
“Compared to their white counterparts, who felt less pressure at an early age of their working lives in terms of responsibility beyond oneself, black middle-class are exposed to much responsibility earlier,” says Egan.
Not everyone believes they have to pay.
“Just because you are my extended family doesn’t mean I owe you anything. The only person I can send money to is my mom and that’s it. Finish. Other people can go and make their own money, at the end of the day I work hard to earn my money and I won’t just give it away to people because they’re family. In other words, black tax is a definite no from me,” says Yonela Mgwali, a journalist and South African graduate.
Many share his sentiments but say nothing for fear of family backlash. Many comply privately.
If you google black tax, a name from Zimbabwe will come up: Gerald Mwandiambira, from the South African Savings Institute, who is seen as an expert. He warns that in African families, where everyone claims to have raised you, the bills can weigh heavily.
“Giving back to the community that helped raise you is not black tax, it is one’s moral responsibility that is deeply entrenched in our values as Africans,” says Mwandiambira.
“There was a time when I had no salary as every cent went to black tax,” he chuckles.
“You look after ageing parents, siblings and your own children and this leaves one financially constrained at the end of each month as 80 to 90 percent of your salary goes towards black tax.”
Mwandiambira is one of many who believe financial instruments should be designed to foot the bill.
“Of all financial products in the market today, funeral policies are the only products designed with this in mind. This is a uniquely African situation.”
Single parent homes make it worse. Then there is the allure of success which brings with it the mantle of lender of last resort.
“We put ourselves under pressure once we have vestiges of success,” says Mwandiambira.
Nozipho Mbanjwa is an anchor at CNBC Africa. She has a master’s degree from Stellenbosch University and many family responsibilities.
“I am the eldest of the three girls in my family, I have helped send some to university and I am currently building a house at home. We have a sense of pride when we plough back to our families, we have an understanding of ubuntu (humanity to others) and we are who we are not because of whom we are,” she says.
Mbanjwa believes it is a hangover from apartheid and agrees with Mwandiambira that there is need to work on investment strategies.
“We need to create sustainable structures that allow our families to be entrepreneurial and self-dependable. We need to innovate so we continue upholding our values.”
Tshepo Maota, a young accountant in Johannesburg, calls for improved financial literacy.
“We need to start teaching our people models of investments,” he says.
“Black people need to put in extra hours, compared to their white counterparts, to remain competitive and meet family obligations.”
Lebogang Mokgethi, a postgraduate anthropology candidate at the University of the Witwatersrand in Johannesburg, is also a supporter.
“I don’t want to be the only graduate in my street; it does not mean anything to me. I am playing my role by empowering my family members and high school learners with career guidance and leadership,” she says.
“We have the Italians, the Greeks and the Jewish racial groups who work collectively to help lift families from poverty. Instead of giving money to buy a microwave, we need to invest in small businesses.”
Zweli Mabhoza, a tax advisor and founder of Premier Priority Tax Solutions, sees black tax as a way of managing resources.
“A lot of people complaining about black tax are products of black tax themselves,” he says.
“Sometimes you don’t have to give anything to people who helped raise you but simply replicate what was done for you.”
Black tax, love it or hate it, if you are a young African professional, you are mostly likely to have to pay it.

Black  Taxed

It’s a mixed bag of black investors; a former civil servant, an engineer, an IT specialist and a car leaser. They are united in taking the risk of bringing the craze of pay-as-you-drive car rentals to Africa. Their company, Locomute Shared Mobility, has sunk $3.4 million into it.
In June, Locomute will have 50 vehicles running on the road in Johannesburg; in three months, Cape Town and Durban will follow.
Sibusiso Xaba, the chairman, is guiding a group of young, black entrepreneurs in their thirties. For more than a decade, Xaba was a civil servant and director general in the Department of Arts and Culture. In January, in his forties, he took the leap as an entrepreneur.
“For every car that is shared, 15 people won’t necessarily have to buy a car. The convenience our service gives to the customers makes it outstanding compared to our competitors. It gets rid of debt capital, no e-tolls, no maintenance costs, you pay as you drive,” says Xaba.
In the competitive world of car rental, Kuthula Mkhize, the general manager, says it’s mainly for business types and visitors.
“Our target market is the executive person who flies into OR Tambo International from Durban and uses the car while in Johannesburg for the meeting and comes back to airport,” says Mkhize, who worked in the car rental business for eight years.
Technology is key. Before you can use Locomute cars you register on the internet or using a cell phone application for a few dollars.
“Subscribed members will reserve a car online or via the Locomute application. It’s a 24/7 access to a pool of vehicles located within designated zones called Locoparks. You only pay for the time you used the vehicle. We are responsible for the fuel, insurance and you leave the car where you desire,” says Xaba.
“This is an in-city service. You are not allowed to take the car in Johannesburg to Bloemfontein. We have technology to monitor our cars and we will immediately know what happens to each and every car in our fleet. If a car is stolen, we will be able to track it in no time,” says Mkhize.
“Before Gautrain was introduced, people drove cars to the airport, not because they wanted to but because they had no choice. Gautrain brought the service that was needed and today it is fully subscribed. So, if you give that person an option to drive our car from an office and leave it in a parking, he doesn’t have to worry about anything else,” says Xaba.
Martin Lydall, chief commercial officer for Imperial Car Rental, one of the biggest car rental companies in South Africa, says competition is good. In South Africa alone there are 60,000 rental vehicles in a business worth around $380 million, he says.
“This is probably the most competitive business in the world and South Africa is among the leading countries. We are business people and competition makes business effective. We are not concerned about the new companies. We have been competing with the small and big companies. It helps to evaluate your competitors and see where you need to improve in your own business,” says Lydall.
Derek Watts, FORBES AFRICA’s motoring correspondent, says there’s space for new players.
“We get used to the way of operations but if they establish a good name people will use their service. The transport system in South Africa changes by the day. It would be interesting to see, as long as you free people from insurance which this company is promising, then people will use the service,” says Watts.
Xaba hopes so.

Driving All The Way  To The Bank

It was in December last year, at 3:30AM. Helga Barkhuizen was in the passenger seat with a friend and his two children. They were on their way from Cape Town to Beafort West, on the N1 near the small town of Leeu-Gamka, 70 kilometers away.
The Miss South Africa International 2012 had had the time of her life at a biker rally and a new tattoo to boot. It still itched on her wrist.
The road to George was a familiar one for Barkhuizen. The road of the N1 lances through kilometer after kilometer of dry scrub.
Barkhuizen drifted off to sleep on the center console.
When she woke again, she saw the truck turning into a petrol station that was to crush her life.
<img loading="lazy" decoding="async" class="size-medium wp-image-29595 alignleft" src="http://www.forbesafrica.com/app/uploads/2017/05/FWA-2014-Oct-Nov-044-046-Helga-Barkhuizen-001-300x200.jpg" alt="" width="300" height="200" srcset="https://cms.forbesafrica.com/wp-content/uploads/2017/05/FWA-2014-Oct-Nov-044-046-Helga-Barkhuizen-001-300x200.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/FWA-2014-Oct-Nov-044-046-Helga-Barkhuizen-001-600x400.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/FWA-2014-Oct-Nov-044-046-Helga-Barkhuizen-001-768x512.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/FWA-2014-Oct-Nov-044-046-Helga-Barkhuizen-001.jpg 1024w" sizes="(max-width: 300px) 100vw, 300px" />
“The car pulled to the right, I closed my eyes and I prayed, and I said you know what, this is it. I am ready to die,” she says.
In a few seconds, in a horror collision, a steel rod sticking out the back of the truck split the car in two slicing her left leg and shattering her right.
“My leg was on the floor in front of me. It was taken off in the accident. It wasn’t like I woke up in hospital, I said goodbye to my leg there and then,” says Barkhuizen.
But, by pure chance, an ambulance was at the petrol station.
“The first thing I told the paramedic was that he needed to give the driver something for shock. He was running around like a headless chicken. I get calm in emergency scenarios so I don’t actually freak out. And the paramedic was looking at me and saying ‘you do realize how hurt you are?’ I said yes I can see, but [the driver] needs to make phone calls right now, if he cannot verbally get my personal details across, then I am going to die,” she says.
It was also lucky for Barkhuizen that she remained conscious.
“I asked for the Jaws of Life and they said there was no chance. We can’t bring the jaws because you’ll be dead before we can get them here. The fact that I was kind of flexible and had been a dancer all my life saved my life. They bent me like a sandwich to pull me out of the car. Then they vacuum-packed my body into a black bag to keep the blood circulation going. I was literally sitting in a pool of my own blood before the 70 kilometer drive to the hospital,” she says.
Barkhuizen spent two months in a Cape Town hospital learning to live with her amputation. She was overwhelmed with the support her family gave her, who flew in regularly to visit. The others in the car accident walked away with scrapes and bruises.
“I didn’t know [the driver] had fallen asleep until about a month ago [July], when I went to see the car. Call it women’s intuition, like an ant itching in your bum, I felt like something was amiss. The panel beater said there was no chance that he had been driving 100 kilometers an hour and didn’t see the lights on the truck. The car was going at 160km/h when it hit the truck. It was when the driver touched the brake that I woke up and knew something was wrong.”
These days, Barkhuizen is full of life. She walks proudly around in her prosthetic, which costs R500,000 ($46,000), and is built to support high heels. She needs to buy two pairs of shoes though, one for her real foot and the other, a size larger, for the fake one.
The fake foot also needs to be charged, like a battery.
From her offices in Rivonia, Johannesburg, she runs an interior decorating company; a motivational speaking clinic for teens; an eco-tourism property development scheme and an executive lounge networking club. She has also designed a glow-in-the-dark rubber band engraved with your personal details – inspired from her accident. All this is done in a male-dominated business world.
“It’s difficult. You will see a pretty face and a skirt and they will think wow that is how she got there and you wouldn’t think she worked her bum off to get to that point. It’s very difficult to walk into meetings with cultural generalizations or with a specific certificate to get things done,” she says.
Barkhuizen is training to participate in the South African Paralympic swimming squad, plans to buy an automatic motorbike with a foot strap and dreams of scuba diving with an aquatic-friendly leg.
<img loading="lazy" decoding="async" class="size-medium wp-image-29596 alignleft" src="http://www.forbesafrica.com/app/uploads/2017/05/FWA-2014-Oct-Nov-044-046-Helga-Barkhuizen-004-225x300.jpg" alt="" width="225" height="300" srcset="https://cms.forbesafrica.com/wp-content/uploads/2017/05/FWA-2014-Oct-Nov-044-046-Helga-Barkhuizen-004-225x300.jpg 225w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/FWA-2014-Oct-Nov-044-046-Helga-Barkhuizen-004-300x400.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/FWA-2014-Oct-Nov-044-046-Helga-Barkhuizen-004.jpg 435w" sizes="(max-width: 225px) 100vw, 225px" />
“Whatever came out of this, I knew I had to make the most of it, why stop living because I’ve lost one limb. There are so many things that are driving me, particularly my personal trainer and my businesses. I am young, I still want to get married, there is no reason for my life to be boring. It feels like I’ve been actually asleep for the past ten years. I’ve missed who I was,” she says.
You’ve got to listen to somebody who cheated death and prospered.

FWA-2014-Oct-Nov-044-046-Helga-Barkhuizen-005

Losing A Limb, Finding A New Life

The invention of the automobile has gone hand-in-hand with an unfortunate counterpart: accidents. This has been, mainly, due to driver error, rather than mechanical failure, so the objective for some time has been to eliminate this factor and make the daily commute less stressful. Popular culture brought us examples of cars that were capable of driving themselves, Knight Rider’s Knight Industries Three Thousand (KITT) for example, and it seems these once fairy tale visions will soon be realized.
The development of autonomous cars—and we’ll get to why this term is specifically used, rather than “driverless” vehicles—has been built on advances in safety that really started with seemingly innocuous features such as ABS. Here, an on-board computer senses heavy braking and intervenes before the wheels lock up. It’s therefore trying to circumvent human error, which is what autonomous cars do—just on a grander scale.
Volvo introduced its City Safety feature on their XC60 range some years back, which made use of lasers that could sense an impending accident. The technology assisted drivers by applying the brakes, up to 100% if required. The goal has been to use autonomous driving technology for those tedious commutes to work and back where frustration, tiredness, traffic jams and all those other aggravating factors come into play. This led to the development of FROG (Free Ranging On Grid technology); a car with an on-board computer loaded with maps. The vehicle knows where its starting location is and it checks its progress along the way by counting wheel revolutions, and its proximity to electronic beacons.
FROG is already being used for loading cargo as well as in factories, and the intention is to use it for public transportation. In this scenario, passengers go to a stop point and press a button; essentially calling the car as one would an elevator. You’d then get on and disembark at whichever location you’d selected as you would on a bus or train. Naturally, the downfall of the system is that the vehicles only go to predetermined places.
The autonomous cars of our future will make use of a range of technologies including radar, GPS, computer vision and would necessitate that the various systems of the car communicate with each other. Like the human brain, the aim is to take sensory information, interpret it and react in an appropriate manner. Some systems even allow for their maps to be updated as a result of changes to the environment. Once the technology is widespread enough, we could imagine a scenario where cars could “talk” to one another by sending warnings, to those further behind, of forthcoming obstacles.
Numerous car manufacturers have jumped on the autonomous vehicle bandwagon, but perhaps the most innovative leader in the field is not a maker of transportation, but search engine giant Google. The company has made use of retrofitted cars—usually a Toyota Prius or Lexus RX450H—loaded with LIDAR (Light Detection And Ranging), rangefinders, cameras and GPS sensors. Each car’s equipment costs in the region of $150,000 and there are usually 10 vehicles on the road at any given time, testing the systems thoroughly. The current expense of such technology is certainly a deterring factor for any prospective users, as polls have already indicated.
With time prices will decrease; in the future drivers may get some form of rebate or financial assistance from insurance companies. Offsetting the initial outlay are numerous benefits such as increased safety, fewer collisions, less congestion therefore increased road capacity, higher speed limits for autonomous cars, alleviation of parking problems—cars could drop us off and find parking far away and come collect us when required—and an increase in fuel efficiency.
Engineer Sebastian Thrun, the co-inventor of Google’s Street View and a director of the Stanford Artificial Intelligence Laboratory, started the Google autonomous car project. Extensive testing has taken place and the cars have driven on roads notorious for their choking traffic or dangerous bends, such as San Francisco’s Lombard Street.
Each car is accompanied by a driver, with an unblemished record, and a Google engineer in the passenger seat. In case of emergencies, the cars have an override system in place, which is very similar to those we find on modern cars with cruise control. Only two minor accidents have been recorded during the more than 482,000 kilometers of testing. Google claims that in both instances a person was driving, not the autonomous system and that the last instance was a bumper-bashing where the Google car got rear-ended.
The above begs consideration for two important points, firstly legislature concerning driverless cars and secondly, who is liable in the case of litigation. In all countries, the law presumes that a human adult is driving their vehicle. On March 1, 2012, the state of Nevada was the first to pass a law allowing for the operation of autonomous cars. In September, California and Florida followed suit.
Unsurprisingly, Nevada requires a person to be behind the wheel at all times to take over in emergency situations. License plates for future driverless cars in Nevada will be red and have an infinity symbol on the left-hand side. This of course limits the benefits of such vehicles as intoxicated drivers, minors or the unlicensed still couldn’t operate them.
In terms of the legal repercussions governing autonomous cars involved in accidents, some creative solutions have been put forward. One idea makes use of an example we’d never normally associate with driving: vaccines. The idea is that autonomous cars will be extremely safe but like a vaccine, where there is a tiny chance it could harm the patient, these vehicles could too. When a fatal accident occurs, according to this theory, the family would be compensated by a fund set up for this purpose.
Another school of thought is that the purchasers, not the manufacturers, of such cars take upon themselves the responsibility. This sounds reasonable until we consider that a software bug or mechanical failure could result in jail time or the driver being sued when in essence, he had no control over the situation. The more likely option is that the manufacturer would carry the blame, and costs incurred, should their product be found wanting. That’s a bitter pill to swallow as even if the percentage of defects is 1, this could still translate into extremely expensive lawsuits.
The last option is to spread the responsibility across all driverless car owners. They’d take out a special insurance package and the insurers would be responsible for determining whether the system, manufacturer or driver was at fault. This is still a complicated approach and difficult to implement but it would necessitate that car manufacturers would have to up their game which, in the long run, benefits everyone.
Jim Pisz, head of Toyota’s business strategy in North America, sums it up: “We feel that with autonomous driving, the driver should always be in control. It’s a critical element to our philosophy: autonomous does not mean driverless.”
Guess we won’t be calling KITT on our watch phone to save us from a sticky situation any time soon.

The Car That Chauffeurs You

Formula One is arguably one of the most technologically demanding sports on the planet. Obscene amounts of money are poured into vehicles that are the pinnacle of design and performance engineering; vehicles piloted by drivers whose talents seem superhuman. Even to the most ardent enthusiast, the complexities of these vehicles is mind-numbing.
A Formula One car is broken down into the following components: the nose, front wing, push/pull rod suspension, sidepods, rear end, exhaust system and rear wing. The grotesque-looking nose channels airflow and serves as a safety mechanism. According to 2012 regulations, the nose must sit 550mm above the base of the car to prevent major trauma to drivers in cases where the side of a vehicle is hit. Configuring airflow over most of the vehicle is the job of the front wing. It creates the aerodynamic down force needed to keep the car in contact with the track—essential when traveling at close to 400km/h. Airflow is a major consideration in the design of Formula One cars, and the suspension is of particular concern as these are areas of great turbulence. The push/pull rods allow for increased suspension geometry and decreased air resistance.
The sidepods of a Formula One car house many of the crucial components such as the GPS locator, oil-cooling radiators, batteries and clutch disengage systems (which marshals can use in emergencies). As they can be obtrusive, many manufacturers use deep undercuts to assist with airflow. The rear end ensures optimal airflow at the back of the car. Tighter paneling and smaller gearboxes are naturally advantageous.
Last year, teams made use of engine mapping that allowed engines to blow “off throttle” which created extra down force in corners. However, this year, the use of “blown diffusers” has been banned. Teams are looking at alternatives, with some directing their exhaust gasses over the rear beam wing (which has proven to be less effective).
Drivers are able to control the amount of drag using the Drag Reduction System (DRS), which in turn equates to greater or less speed, as required. In practice and qualifying, DRS can be used at any time. Mid-competition though, a car must be less than a second behind another vehicle to be activated (the system shuts down when the driver brakes).
Formula One cars are capable of changing gears in only 0.05 seconds. During a race season, each team is allowed up to 30 pairs of gear ratios, but these must be openly declared to the FIA (Fédération Internationale de l’Automobile). Tolerances within the Formula One engine are in the realm of mere microns (i.e. thousandths of a millimeter) and most engines are normally aspirated 2.4-liter V8s.
Formula One cars use the Kinetic Energy Recovery Systems technology we are now seeing in production vehicles. It harnesses heat energy produced by normal braking, which is stored and used to boost acceleration. Lap times can be decreased by anything from 0.1 to 0.4 seconds.
Typically, a Formula One car weighs just 550kg and is 85% carbon fiber. It can speed up from zero to 160km/h and back down to zero in only four seconds. Drivers can be subjected to as much as 5Gs (G-force); that means their bodies weigh five times more than normal. Some drivers have even said that under extreme braking, their tear ducts squirt water onto their visors!
Formula One is a spectacularly expensive sport to engage in, either as a host country or as a constructor team (constructor countries comprise the United States, Italy, India, Spain, Great Britain, Russia, Germany, Austria and Switzerland). Countries hosting circuits are Australia, Malaysia, China, Bahrain, Spain, Monte Carlo, Canada, Great Britain, Germany, Hungary, Belgium, Italy, Singapore, Japan, Korea, Dubai, the United States and Brazil. In 2010, Austin-based company Full Throttle Productions submitted data that helped secure a track in Texas. They claimed that a race weekend would have a direct economic impact of $300 million for that area and produce $26.6 million in new tax revenue for the state.
But such profits would come at a cost. Full Throttle Productions needed $25 million for the next decade, in the form of state financial support—not an easy task for most African states to pull off. The GDPs of countries that host Formula One circuits are in the trillions of dollars, with the exception of Hungary, which raked in a paltry $147 billion last year. Selecting an African country, Uganda say, we can determine from their GDP—$42 billion—that such an investment would be ludicrous when so many other vital aspects demand the state’s attention.
South Africa held the National Formula One Championship series from 1960 to 1975. The death knell was sounded due to spiraling costs and objections to the country’s apartheid policy. Still, there have been two races since—one in 1992 and one in 1993 (won by Alain Prost in his Williams).
If South Africa entered the fray, it would be the only country on the continent to do so—other nations being too poor or embroiled in political turmoil. Rallying has traditionally been more successful here (the Safari, Ivory Coast and Paris-Dakar races). There was some racing undertaken in North Africa where French and Italian influences were felt, and most of these were held in city streets. There was the Tripoli Grand Prix, the Moroccan Grand Prix and the Algerian Grand Prix—the latter cut short by an uprising in 1954. Racing featured in Portuguese-influenced territories in the 1960s, such as Mozambique and Angola. Excessive heat sometimes saw the majority of cars simply failing.
There is talk however, that F1 boss Bernie Ecclestone will be bringing the sport to South Africa. A proposed location for a Monaco-styled course has been suggested along Mouille Point in Cape Town. But, says Francois Pretorius, CEO of Motorsport South Africa: “We have not received any confirmation in this regard.” Despite Ecclestone alluding to the proposal being close to conclusion, environmental impact studies would still need to be done, and the substantial costs would need to be offset against any potential benefits. Hopefully, South Africa will be able to champion the cause for its brothers.

Tag: Car

FORBES AFRICA SOCIAL MEDIA

A Country On A Roll

A Concept Car That Captivates

Defending The Cayman

A Muscle Car On Steroids

Black Taxed

Driving All The Way To The Bank

Losing A Limb, Finding A New Life

The Car That Chauffeurs You

Gearing Up For An African F1