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Johannesburg - Bembani Group CEO Titus Baloyi is one of the few business people smiling all the way to the bank - even in the face of the economic slowdown.
The success of his budding multinational business empire is proof that environmental sustainability, or going green, is good for business.
Bembani, an environmental consultancy, was established in 2001. It provides sustainability strategies for companies in South Africa. However, its has also branched out to Tanzania, Kenya, Angola, Democratic Republic of Congo, Botswana and Mozambique.
Part of Bembani's success stems from the fact that it secured long-term contracts two years ago when business was bullish.
Baloyi believes the company would not have come this far if it had not focused on creating and maintaining good relationships with its clients.
"Business is all about managing good relationships with clients," says Baloyi.
He says the staff understand the laws governing the business that Bembani's clients operate within.
"And when we come across commercial opportunities for our clients, we pass the information on for free and we don?t even charge consultation fees," he says.
This constant form of interaction creates a family-like relationship that makes it difficult for the clients to cut ties, he says.
"That is why 40% of our clients have been with us for more than five years," says Baloyi.
Another big factor contributing to the success of the company is that it only hires researchers with masters degrees as a minimum qualification.
Baloyi says only highly skilled people are employed as they have to carry out research to assist the company to unearth business opportunities.
"We spend a lot of time in research," he says.
After spotting the commercial opportunities, Bembani would approaches specific organisations in the public and private sectors to offer their services.
"That is why in most instances when a tender hits the media, we are already ahead of the competition as we are the ones who created the opportunity," he says.
The company is currently working on a research project with the United Nations to create carbon emission standards for African countries using the US and European Union standards as benchmarks, he says.
Bembani employs 100 people.
For all his success, Baloyi, who holds a master's degree in environmental management and analysis focusing on sustainable development, made a cautious entry into business.
He held a cosy job as head of the corporate development and governance division at Sasol. While working there he would come home from work to dedicate his time to researching the feasibility of a business that would provide environmental sustainability training.
His market research also focused on the probability of failure and potential business opportunities, he says.
Even after the results of his research suggested the company could succeed, Baloyi says the fear of failing haunted him.
"At times I had doubts and thought if the business fails I might lose my car, friends and house," he says. "However, I found solace in the fact that taking the risk would not lead to death."
Baloyi says he built a network of business contacts to whom he sold his services before he resigned at Sasol.
The hard work Baloyi invested in research and marketing paid off when he secured R1.6m in contracts in Bembani's first month of operation.
Three months later he was back at Sasol as a consultant.
Baloyi says when Bembani was still trying to find its feet in 2002, an established company offered him millions of rands to buy him out.
"As I had not paid off my house and cars, the offer was tempting," he says.
"But I refused because I think I was the only black company operating in that industry," he says. Had Baloyi taken the offer, he might not know how it feels to run a company that creates and implements sustainable development projects with the UN, owns tea plantations employing about 2 500 people, does work for several African countries and local parastatals, government departments and provinces.
Bembani Group also owns a hot beverages subsidiary that plans to open an African coffee franchise next month. The company has also been involved in major projects like Greening 2010, air quality management and planning in North West, and penning environmental impact assessments for Eskom, PetroSA and Gautrain.
In Tshivhase, Limpopo, Bembani owns tea plantations and has recruited blenders from Tanzania and Malaysia who help to export its products to Japan and Germany.
In 2007 Bembani gave birth to another subsidiary, EnviroChoice, which addresses power shortages in the country.
"EnviroChoice, for instance, implemented the remote metering system, which municipalities could use to switch off residential geysers from their offices," he says.
Bembani is now working on two projects in which the company aims to turn waste products into clothing and other products.
"South Africa has five million tons of waste tyres each year, which if burned create greenhouse emissions," says Baloyi.
"We are planning to invest R100m in a machine that will recycle tyres into rubber and manufacture products like shoes and conveyor belts.
"All we are just waiting for is the approval of patent rights to recycle the tyres."
The project is expected to deliver at least 7 000 long-term jobs.
- City Press
