What inspired you to start your company?

After my two-year journey, myself and my husband (then boyfriend), fell pregnant with our first born, Kai. Facing the worries of new parents-to-be, naturally we wanted the best for our child, but the best comes at a price. We were in search for a stroller, and soon realized that financially this was going to be a setback, as strollers or travel systems that we had viewed at the time were priced between R12000-R25000. Now whereas having a travel system is not the start and end of life as we know it, it was an important part of practically improving day-to-day life with baby and being mobile is what gives parents their sanity, so we needed to get one.

I started browsing the internet abroad and came across a few sites that offered suppliers of travel systems. After enquiring and doing the necessary admin, I soon realized that we were able to bring in a sample with a few changes of our choice for a fee. Seeing as we were in the market to buy one, I allocated our small budget to purchasing the sample. Two weeks later it arrived… After using the stroller for a couple of days in public, putting it through its paces and turning a few heads, I said to my husband ‘I can sell this’. Naturally being entrepreneurs, we agreed to give it a try and placed a minimum order of 50. Our 50 were sold on pre-order before they landed. It’s been an emotional crazy journey since then and three years later we’ve sold over 2000 NulaBugs… Since then our range has expanded to over 7 different strollers (including a twin stroller), we now also do nursery furniture, rocking chairs as well as 360-degree rotation car seats and accessories.

Why should anyone use your service or product?

We offer an incredible product at an even better price.

Tell us a little about your team

Our team is what has made NOOLA what it is today! they are like-minded, hardworking individuals who will always go out their way to assist.

Share a little about your entrepreneurial journey. And, do you come from an entrepreneurial background?

I do, my parents and uncles are all self-employed which is a start. I always used to help during school holidays with admin for pocket money which allowed me to be in the heart of where customers queries and feedback ended up. I studied at the incredible FEDISA school of fashion where I did my BA degree in fashion design with a diploma in business marketing which helped with learning how to deal with crazy pressure as well as understanding fabrics and manufacturing which assisted massively when I had to deal with my suppliers.

Impact Partner Content / Absa

Absa has a clear understanding of the fuel industry, which is clearly outlined in our banking solutions. We spend time understanding our clients’ needs within the industry and provide solutions accordingly. We have an end-to-end approach to solutioning the owner’s, business’s and employees’ needs. As a financial services partner to more than 30% of service stations in South Africa, Absa has a thorough understanding of the industry’s intricacies and specific challenges.

Fuel retail is an incredibly specialised sector, with operating margins and financial performance being affected by numerous macro- and microeconomic factors, ranging from oil prices and rand/dollar exchange rates to increasing operating expenses, infrastructure development (such as roads and public transport), consumer purchasing power, the impact of regulations and the future of alternative energy solutions.

Industry challenges

The recent international conflicts have a direct impact on the South African market, as shortages of oil drive up the prices. One of the most important influencers or factors that impact the profitability of service station businesses, is the fuel price. The public usually assumes that when there is a fuel price hike, the service station businesses make more money. However, this is not the case. The profit margin of the business reduces due to the increase of operational expenses directly linked to turnover on a percentage basis, i.e. cash management and merchant service fees. The retailer margin, determined by the Department of Mineral Resources and Energy, called the Regulatory Accounting System (RAS), doesn’t make sufficient provision and there is an average underrecovery of more than 10 cents per litre. The insurance and bank allocations are just above 8 cents per litre and a typical credit card transaction costs nearly 33 cents per litre. The business must recover the increased operational costs from the entrepreneurial compensation margin, currently standing at 133.1 cents per litre. In addition, while the price of fuel goes up, motorists’ budgets may have very little room to grow. Many patrons opt to pursue public transport alternatives, such as the Gautrain and carpool with their fellow employees, and opting for a hybrid work-from-home model. Consequently, patrons are filling up their vehicles less frequently with an average fill of 17.5 litres per visit. 

Three roads, one destination to profitability

Probably the most important consideration is viability. Within South Africa, there are three ways to become involved in the fuel retail industry. The first of these being investing in the development of a service station, i.e. the physical building and land, along with the associated assets (property investment). Secondly, you can buy the business operation only. Lastly, you can opt to purchase both the property and the operation.

Service station valuations

Our industry expertise has enabled us over the years to develop an accurate valuation tool that assists us in establishing the value of a service station business. This is an indispensable tool that supports our assessment of the merits of a credit application. For example, at Absa, we can quickly work out if a purchaser is paying too much for a site.

Understanding credit risk

Having knowledgeable and leading industry experts in the Absa Wholesale, Retail and Franchise teams, ensures that we adequately identify the credit risks associated with the industry and on an operator level. This allows us to carve out bespoke lending solutions to individual operators and provide comfort to the Credit Sanctioning team that the important credit and business risks have been identified and mitigated.

Our solutions

Whether it is the finance of a business, working capital or property development, our relationships with oil companies, industry associations and fuel wholesalers, retailers and distributors, means that our products and solutions are truly tailored to meet the needs of service station businesses. Our operational products include cash management, payment solutions, merchant services, electronic banking, investment solutions and commercial asset finance. 

Integrated fuel solution

Our revamped integrated fuel solution provides a seamless experience, while giving the filling station owner greater control and peace of mind of full integration with their existing systems. It offers an enhanced system that integrates seamlessly with your existing point-of-sale software. This reduces human error, fraud and chargeback risks on the one hand. On the other hand, it increases spend at filling stations while automating the reconciliation of sales transactions.

Islamic Banking 

Our Islamic Banking develops Shari’ah-compliant products. Whether you want to transact, save, invest, plan financially, travel or protect your assets, there is an Islamic product for you. 

Renewable energy

Given South Africa’s abundant sunlight, increasing electricity tariffs, a concerning grid system, decreasing cost of solar photovoltaic (PV) installations and a supportive regulatory environment, there is a strong case for filling stations to invest in solar PV. Fuel businesses generally operate 24/7,  which makes renewable solutions ideal.

• A dedicated renewable energy team will look at your needs and provide advice on the right solution to ensure a more sustainable future.

• Our knowledge and expertise will protect your solar PV investment by:

  • Building on our experience and success in the funding of solar PV

  • Working with industry leaders in the sector

  • Considering the cashflow of the asset in our credit decision

  • Understanding that this is an asset with a long lifespan, so we look at finance terms of up to 10 years.

Conclusion

Absa does not approach lending into the industry on a one-size-fits-all basis – rather, we constantly scan the industry to identify the opportunities and develop solutions accordingly. Our leading industry expert has a clear understanding of the industry and is well placed to contribute this knowledge to providing bespoke market-leading solutions.

To find out more about the fuel and franchise industry and the available financing solutions, visit www.absa.co.za, or call: +27 11 350 8000 or email franchise@absa.co.za

Absa is an Authorized Financial Services Provider and a Registered Credit Provider NCRCP7

From when she was in high school, Keneilwe Raphesu started shadowing her father, Dr Mamabolo Raphesu, on his farm. Two years ago, she came out from his shadow to swop life in academia for life on a farm. Peter Mashala caught up with this ambitious father-and-daughter team.

As a young black woman, many people were sceptical that 24-year- old Keneilwe Raphesu had what it takes to assume control of her father’s 405ha enterprise

in Holfontein. Yet the trust, knowledge and support from her dad – along with impressive skills acquired through the Sernick Emerging Farmers Programme – gave Keneilwe the tools to take the farming operation to new heights.

Keneilwe was handed the reins of the cattle, pig and grain farm in 2020 when her dad, Dr Mamabolo Raphesu, resigned to focus on his political career.

“I started getting more involved on the farm from 2018 when I was studying my first degree in economics and international trade. My dad gave me the full reins and made me a director in the business in 2020,” says Keneilwe, who graduated in 2019 and is now in the final year of her second degree.

Mamabolo had been farming for about 18 years on this leased government farm in Holfontein, near Vanderbijlpark, on the border of Gauteng and North West province.

“When I decided to pursue my political work full time, I handed the farm over to Keneilwe. She had been shadowing me since she was in high school and I had confidence in her,” recalls Mamabolo, who works at the local municipal council of Emfuleni in Vanderbijlpark in the Sedibeng municipality.

Mamabolo began his farming career in the late 1990s on communal land outside Sharpeville with two friends. In 2003, the three acquired a 200ha farm near Meyerton, outside Vereeniging, where they kept about 60 cattle. Mamabolo then applied for his own farm through government’s Proactive Land Acqui­ sition Strategy (PLAS).

“The farm had over 200ha arable land, but I was not really interested in crop farming because I had no experience or equipment,” says Mamabolo, a Limpopo native from Ga­Mokgopo and a former lecturer at the University of Limpopo (Turfloop).

A FARMING FAMILY

Keneilwe spent most of her time with her dad growing up.

“When I was still in high school, I would tail him everywhere: working on the farm, doing vaccinations and inoculations, attending auctions. I used to travel with him to the Free State where he bought his bulls. It didn’t make sense to me at the time to spend so much money on a bull,” she recalls.

It makes perfect sense now, after her training at Sernick. “I fully understand why dad spent money on quality bulls. We buy stud bulls from reputable farmers. Our latest is a three­year­old Bonsmara bull from Nick Serfontein of Sernick Bonsmaras.”

A bull contributes about half the genes to his progeny, so beef producers should not compromise on quality, she says.

“One should always go for a bull with good conformation to ensure you produce heavier weaners, which will fetch good prices at auctions. That’s why I convinced my dad to transform our herd from mixed breeds of Bradford, Charolais, Simbra and Brahman to one breed with the best traits,” explains Keneilwe.

Their breed of choice was Bonsmara, inspired by Keneilwe’s experience with this breed during her training at Sernick. When she stepped into her dad’s shoes, their herd consisted of about 55 mixed­breed cattle. She has transformed it into 80% Bonsmara, with 39 breeding Bonsmara cows and one bull.

Most of the older cows were replaced with 18­month­old Bonsmara heifers with a smaller frame and body weight. “As for the bull, I chose one that wasn’t too muscular because I didn’t want a bull that would struggle during mating,” explains Keneilwe.

Her aim is to produce cattle with more muscle than fat, so she does not pamper them with supplementary feed. Instead, she employs a semi­intensive feeding programme.

“We have good grazing that is dominated by sweet grass, so in summer we only provide cattle with summer licks,” she says.

In winter, they get supplementary feed of molasses and yellow maize twice a day, as well as a winter lick. Keneilwe also provides Smuts finger hay bales.

“Most of the cows are pregnant now and therefore we must provide enough protein, vitamins and trace minerals to maintain good body condition for delivering healthy calves and to help them produce sufficient milk to raise them.”

100% CALVING RATE

Keneilwe has two breeding seasons. From November to January, half the cows are run with the bull in one camp. “Because of our good annual rainfall, averaging between 600mm and 700mm, we generally have enough grass in our four camps of 13ha, 17ha, 60ha and 100ha,” explains Keneilwe.

Pregnancy tests are performed in February. Cows that have not conceived are put with the bull for the second mating in April to May. Pregnant cows are separated from those that didn’t conceive at either mating.

“It’s important to conduct fertility and trichomoniasis disease tests on the bull before it’s put in with cows for mating. The bull is responsible for 50% of your production, so looking after it is important.”

The bull is always on a bull finisher or production lick containing natural protein, non-protein nitrogen (NPN) compounds, carbohydrates and other trace minerals. Their conception rate is close to 95%. The calving rate is 100%, with extremely low mortality.

“Calving occurs from August to September with the first batch, and from December with the second batch,” she says, adding that mating and calving seasons are timed to coincide with periods of sufficient grazing.

Calves are weaned at six to eight months at a weight of 190-220kg.

“Male weaners are sold on auction or to an abattoir in Holfontein. All female weaners are kept and raised for breeding.”

MIXED FARMING

Although Mamabolo wasn’t initially too keen on crop farming, they had to utilise the 205ha arable lands to make the operation viable. They first rented out the fields to a commercial farmer for maize and soya bean production.

They capitalised on the opportunity to buy their own equipment with the rental income, and started to practice what they learnt on their own smaller plots.

They’ve now resumed control of 116ha: 90ha maize and 26ha soya beans. Soil preparations began in October, with planting taking place from late October to November. However, the rains caught up with them and they couldn’t finish planting the entire area.

To help with cashflow, they also run a small piggery with eight sows and a boar. The piglets are sold to an abattoir and to the public from six to 10 weeks old, at about 25kg. Keneilwe plans to expand the piggery to over 50 breeding sows, while her five-year goal is to acquire more land to grow the cattle operation and increase the herd.

With farming in her family, and a head full of knowledge, the opportunities are limitless for Keneilwe.

“I dream of establishing a feedlot, of opening an abattoir and butchery someday … and maybe becoming an auctioneer too! Who knows,” she laughs.

UPSKILLING FOR COMMERCIAL SUCCESS

Keneilwe completed the 18­month Sernick Emerging Farmers Programme at the Sernick Group’s farm in Edenville outside Kroonstad, Free State.

The Sernick Group runs this programme in partnership with the Jobs Fund at National Treasury, and aims to develop emerging cattle farmers into profitable commercial cattle farmers. It focuses on animal production – from animal health and nutrition to animal selection, feed lotting and veld management.

It also includes business courses, such as marketing and financial management. The farmers receive SETA­accredited training and an opportunity to exchange their old stock with good­quality cattle that fetch higher prices.

“I’ve been part of the Tier 2 group where the emphasis is on herd development and maintaining a healthy cash flow,” explains Keneilwe.

Keneilwe has transformed her dad’s herd from 55 mixed­breeds to 80% Bonsmara, with 39 breeding Bonsmara cows and one bull.

“I go by the motto ‘quality over quantity’. Maintaining good genetics and achieving high performance and productivity from the bull and the cows is paramount.”

Keneilwe’s immediate goal is to become part of the Tier 3 group in the Sernick programme. “This will not only improve my skills but will help us acquire more breeding stock. When you reach Tier 3, you qualify for a loan made up of 35 breeding cows and a bull.”

Green veld or lush pasture is more palatable and more digestible to livestock and has a higher nutritional content. Palatability and mineral levels decrease in the colder, drier months. Ratselane Marumo of Afrivet says these deficiencies must be corrected, as the importance of minerals in the functions and processes of livestock is significant. 

Grass, water and ingested soil are the major mineral sources of veld-raised livestock. However, some parts of South Africa are deficient in some essential minerals and overgrazing has led to poor quality veld. This means animals do not take in the minerals and vitamins they need for optimal growth, health and successful reproduction, says Ratselane Marumo. 

According to research by Gaborone-based vet Dr Laetitia Gaudex, the South African calving rate, a measure of reproductive performance, is at 61% in the commercial beef cattle sector and at 23% in the communal cattle sector. These figures show room for improvement in both sectors, and checking on mineral content in forage and feed is a good place to start. 

Nutritional elements that are not present in feed or grazing can be supplied cost-effectively, but farmers should determine shortages before supplementing to avoid wasting money on unnecessary supplementation. 

Minerals are categorised into macro- or microminerals, depending on the levels present in the animals’ bodies or the amounts required in their diet. Macrominerals (the ones they need a lot of), such as calcium, magnesium, phosphorus, potassium, sodium, chlorine and sulphur, are important for skeletal performance, weight gain, milk production, onset of puberty, the nervous and muscular systems and carbohydrate metabolism, among other functions. The important microminerals, including copper, selenium and zinc, are equally crucial to health and development, but in small quantities.

The most important vitamins required by cattle are vitamins A, D and E. Vitamin and mineral supplements are available in loose mixes, premixes, mineral blocks, oral drenches and injectables. Afrivet markets a number of these products and has the expertise to help farmers make relevant choices.

“Use your forages sustainably so that you can graze the veld and then use supplements when necessary,” says Marumo. 

For more information, visit www.afrivet.co.za