the south african electronic security industry

THE SOUTH AFRICAN
ELECTRONIC
SECURITY INDUSTRY
SAVANT
PROFILE
South Africa is alive with possibilities!
CONTENTS
SOUTH AFRICA - YOUR LINK TO THE WORLD
2
THE SOUTH AFRICAN ELECTRONIC SECURITY INDUSTRY
3
MADE IN SOUTH AFRICA
7
OUT OF AFRICA - A BROAD RANGE OF SOLUTIONS TO A
BROAD RANGE OF INDUSTRIES
8
MARKET OVERVIEW ELECTRONIC
SECURITY PRODUCTS AND SERVICES
16
AN AFRICAN POWER HOUSE
19
WHY SOUTH AFRICA?
20
SOUTH AFRICA ALIVE WITH VALUE
22
1
SOUTH AFRICA - YOUR LINK TO
THE WORLD
South Africa is one of the more sophisticated and
promising emerging markets in the world today and has
the most advanced economy on the African continent.
work successfully with its global partners, providing
great opportunities for investors to leverage its unique
offering to the world.
It has a population of over 47 million, 63% of which
ranks between 15 and 64 years of age with a median
age under 24 years. This places the vast majority of the
population in the available workforce a massive
potential.
South Africa is the true economic powerhouse of the
African continent. It has a GDP at least four times that of
any other country in the Southern African region and is
responsible for a minimum of 25% of the entire
GDP of the continent. In 2005, the GDP of
South Africa was US$ 238 billion
(exchange rate basis) which translated
into GDP/capital of US$12 000 (PPP
South Africa is
basis).
the true economic
Although the country has 11 official
languages, English is widely spoken
and used throughout the business
community. The official languages
are: Afrikaans, English, Ndebele,
powerhouse of the
Pedi, Sotho, Swazi, Tsonga,
African continent. It has a
Tswana, Venda, Xhosa and Zulu.
GDP at least four times that
Further supporting its linguistic
of any other country in the
capacity, South Africa also boasts
Southern
African region and
strong communities that have
is
responsible
for a
Asian, Portuguese, Greek, German
and Lebanese origins.
minimum of 25% of the
South Africa makes up only 4% of
the continent's surface area, but it
is responsible for approximately
40% of all industrial output, over
half of the generated electricity, as
well as 45% of mineral production
in Africa.
•Eastern Cape Province (mainly Port Elizabeth, East
London and the surrounding areas)
Apart from its attractive economic
and political situation, South Africa
has a strategic geographical location
that provides an ideal gateway to subSaharan Africa. Its economy can be
classified as a middle-income, emerging
market with an abundant supply of natural
resources, including certain strategic metal and mineral
resources, such as manganese ore, platinum and gold.
The country's economy has grown by an average of
3.8% since 2000. Growth is expected to continue in this
manner well into the future, providing a stable
environment for international investment and industry
development.
The country's cultural diversity has significant synergy
with the developed world and enables South Africa to
South Africa's well-developed financial, legal,
communications, energy, and transport sectors enable
entire GDP of the
continent.
Four main metropolitan areas
dominate economic activity in the
country:
•Gauteng Province (mainly
Johannesburg/Pretoria and surrounds)
•KwaZulu-Natal Province
Durban/Pinetown area)
(mainly
in
the
coastal
•The Cape Peninsula (including Cape Town and the
outlying areas)
2
the country to function at a very high level, while its
securities exchange ranks among the largest in the world.
The country's modern infrastructure also supports an
efficient distribution of goods to major urban centres
throughout the region. South Africa offers a first-world
transport infrastructure with a well-developed network of
roads, railways and airports of international standard as
well as various ports in major coastal centres, including
Durban the continent's most active harbour.
There are about 34 000 km of railroad track and 50.6 km
per 1 000 km2 of the country is surfaced roadway, with
about 20 000km of primary roads planned in the future.
The country's electricity supply network is also stable,
producing 228 TWh, reaching all major cities and towns as
well as most rural areas.
THE SOUTH AFRICAN
ELECTRONIC SECURITY INDUSTRY
exploit their experience in consulting, integration and
distribution.
What We Have To Offer
Since 9/11 in particular, and subsequently in response to
the rise in terrorism, security has become of heightened
importance globally. South Africa has a lot to offer
countries struggling to understand and meet these
increased demands for personal security because in many
important respects it has led the way.
The Global market for security is set for sustained growth
and South Africa is well placed to serve that market. With
its entrepreneurial spirit supported with access to
advanced technology, resources and world class
infrastructure, South Africa has become an ideal base for
local and international companies to field test their more
innovative products before scaling up for the larger
international markets.
South Africa has a robust and innovative security industry
with its roots in a recent past of political unrest and the
need to contain and reduce crime that was a consequence
of social re-adjustments to a democratic dispensation.
Tough Products In A Tough Market
As a consequence, South Africa spends more per capita
on security than most other countries. The private
security sector is the second biggest employer after the
mines, and is a major economic force in the South African
economy. Its isolation from the rest of the world during its
pre-democracy era, made the nation self reliant in terms
of the solutions and manufacturing capacity capable of
supporting these very real requirements. Security
products have to work, and work well, in order to be
effective deterrents. The physical environment in which
security solutions have to work, such as mines for
example, are typically extreme. Products and solutions
have to withstand vandalism and mishandling as well.
The South Africa security industry has certain competitive
technology advantages which can be exported
internationally. This is as true of the country's hardware
and software innovations, as it is of the country's
intellectual property in risk management and security
principles, based on its experiences in dealing with
demanding security issues over the last several decades.
South African manufactured products compete head on
with international brands like Honeywell, Seimens, GE
Security, and Tyco.
There are several important broad technology trends
which have a bearing on the electronic security industry.
As Information and Communications Technology (ICT)
become the critical success factors in provision of
integrated information systems, so ICT is increasingly
influencing security technology, and its integration with
conventional networks security and ICT are converging.
As a result local manufacturers have concentrated their
development efforts on security products that are easy to
install, simple but effective, robust and durable. Export
success is in part due to South African companies focus on
high-value (low volume) niches, as well as looking to
3
The integration of Access Control systems with CCTV,
Alarms and Intrusion systems and Fire Prevention and
Control systems is also increasingly practical due to
advances in Information Technology, and the rapid rollout of Broadband solutions across the globe.
logical and physical access control means that 'access'
can be further extended to the business network, with
the same physical access control card/ID being used to
access the computer network.
Increasingly associated with Access Control, are Time &
Attendance solutions that are intended to ensure that
workers are paid for work that they do, and that
businesses operate more efficiently.
South Africa has a very well developed IT and
telecommunications sector, with skills and experience
in this sector being used in the development of security
products to match these global technology trends.
Local Access Control solutions are robust, costeffective, engineered for harsh environments and are
technically world-class.
Surveillance
For security purposes, surveillance is monitoring the
behavior of people, objects or processes in an attempt
to discourage crime. CCTV is often used for surveillance
in areas where there is an increased need for security,
such as banks, casinos, airports, retail stores, public
areas and military sites.
South Africa has been a very early adopter of Biometric
technology on a big scale, with its Social Security
(pension) payments being made via biometric
authentication amongst the rural poor, one of the
world's first solutions of its kind. The success of these,
and other projects, offers lessons and value to
developing nations the world over.
The most measurable effect of CCTV is not on crime
prevention, but on detection and identification of the
alleged criminals and their subsequent prosecution.
This sector has the biggest growth potential in South
Africa and may see many local manufacturers respond
with exportable solutions.
Most of the Biometric solutions are finger-print
orientated, but other technologies such as palm, face,
retina and voice recognition are also being actively used
in the field.
South Africa's introduction of EMV compliant smart
cards into the banking sector will set the tone for
continued innovation in this sphere, and the national
HANIS ID card project (Home Affairs National
Identification System a smart card driven identification
system) has the potential to re-enforce the credibility
and value of secure authentication solutions.
High profile, successful projects have been
implemented in South African ports and major city
CBDs as part of joint business government initiative
called Business Against Crime. Surveillance
technologies are also deployed in mines, casinos,
commercial/industrial and retail environments.
Applications range from pure-play security
applications, to sophisticated management tools such
as those used in the monitoring of traffic on highways.
Equipment in this sector includes: Cards/Tags, Readers,
Access Control Systems, T&A Solutions, Asset
Management Solutions, Biometric Systems, and ID
Badging Systems.
Equipment in this sector includes: CCTV Cameras,
Consoles/enclosures for CCTV systems, Digital video
recorders, Digital video systems, Housings, Lenses,
Remote surveillance systems, Switchers, Transmission
systems for CCTV, Video matrix switchers, Video
monitors, Video multiplexers, Video printers, Video
switchers and more.
Major suppliers include:
Major suppliers include:
Access Control
Bosch Security Systems
SA FLEC Group
Lenel Systems International
Transaction Control
Johnson Controls
Technologies
Sony
Centurion Micro Electronics
Proline
TRAC-TECH
Intellepark
Sanyo
Norbain
Timewatch Systems
IMPRO Technologies
ADI International
I to I technologies
Softcon
Clockwatch Distribution
Protoclea
Cathexis Technologies
ASSA ABLOY
Controlsoft
Siemens Building
Cynaps
Access control
Technologies
Access control is the practice of restricting the entry of
people to specific areas. It could start at the entrance to
an office park, where access may be restricted by
means of a fence, gates and guards, for example, and
filter through the entrance of the building, controlled by
access card or biometric readers, entrance to a
particular office by means of a key. The convergence of
Sensable Sensors
GE Security
Bekaert Bastion
Evolving Management
Saflec
4
GSC Systems
Solutions
Blick South Africa
Bio Metrics
SACO Systems
Limtech Biometric Solutions
Ideco Biometric Security
Solutions
GWT
Scanning and Screening
Smart Track
R&D Screening
Bandit
Technologies
Eagle Technology
HAB Fire & Security
DexSecurity Solutions
Emergency Reaction
DataVision
Biometrics.co.za
Digicore
Alarms & intrusion detection
Services
Detecting unauthorised entry to premises, activating an
alarm and communicating with a linked, armed
response control room timeously can prevent further
damage to and/or theft from the property. This can be
achieved by installing video surveillance, perimeter and
peripheral detection and detectors and sensors that
react to heat, noise or movement. Some detectors (e.g.
infrared and ultrasonic) can be set to distinguish
between harmless interferences and genuine
intrusions, thus reducing the rate of false alarms.
Doculam
Beget
Vehicle security
Vehicle security is a fast-growing market across the
board from owners of private cars to companies with
fleets of vehicles to protect.
The high costs and potential for non-availability of fixed
lines (due to cable theft) resulted in South African
innovation in RF-based alarm monitoring networks.
These solutions have great export potential in
developing nations which suffer from poor
telecommunications infrastructure and/or expensive
telecommunications tariffs (RF communications for the
purposes of alarm monitoring is to all intents and
purposes free).
Tracking and traceability is the main concern in this
form of security. These functions aid in recovering
stolen and/or hijacked vehicles and also control theft of
valuable products from companies as well as abuse of
vehicles by drivers.
The primary drivers for these solutions in South Africa
have been the proliferation of vehicle theft syndicates,
and resultant pressure from insurance companies to
mitigate losses. Whilst reasons for vehicle theft differ
from region to region, it is a problem of international
scope and scale, and most countries (industrialised and
developing) are suffering at the hands of vehicle theft
syndicates. Vehicle tracking solutions developed by
South African companies are relatively low cost and
have application to broader Africa. The GSM based
technologies are exportable to any region with cellular
networks in place.
Equipment in this sector includes: Interior and Exterior
Sensors and Detectors, Alarm Communication Systems
(TXs and RXs), Remote Controls, Annunciators, Sirens
and Sounders, Exterior Security Lighting and Theft
Prevention Systems (EAS Systems, Pedestals, Asset
Tags, POS Monitoring Systems).
Major suppliers in this sub-sector include:
Equipment in this sector includes: Vehicle Alarms,
Immobilisers, Vehicle Anti-Hijacking Systems, Vehicle
Gearlocks, Mechanical Immobilisers, Vehicle Tracking &
Recovery and Vehicle fleet management systems.
Sherlotronics SA
Bartronics Security Systems
Radio Data
MAMI
Communications
Major suppliers include:
Inhep Electronics
Quasar Electronics
FSK Electronics SA
QD Group
Elvey Security Technologies
Vehicle Security
Skygistics
Powerhouse Electronics
Cellsecure
Shurlok
Matrix Vehicle Tracking
Martin Electronics
PFK Electronics (Autowatch) Tracker
Sanji Security Systems
Netstar
Grip-Tech
Excess Technologies
Fire Protection
Fleet Management
Equipment designed for the prevention, detection and
suppression of fire. There are a number of
manufacturers of fire detection and monitoring
solutions in South Africa, and there is certainly scope to
grow this sector of the security industry. It tends to be
driven by safety and compliance issues, which differ
from region to region. Fire detection and monitoring
solutions developed in South Africa offer value and
quality, as well as competitive feature sets.
AFS Group (efuel)
Vehicle Tracking & Recovery
Electronic Tracking Systems
Advanced Telematics
(AC-TEC Group)
Cartrack
CI Omnibridge
Mobile Tracker
Global Track
Orbtech
Geotab
5
Public address, paging systems and evacuation
systems tend to go hand-in-hand with Fire (safety)
solutions, and as such tend to be modules, or integrated
components of the whole.
Intercom Systems, Perimeter Fencing, Parking Control
Systems, Security Glazing, Detection Systems, and
Security Lighting Systems.
Major suppliers in this subsector include:
Equipment in this sector includes: Fire Detection & Early
Warning Systems, Control Panels, Fire Suppression
Solutions, and Fire Fighting Equipment and
Accessories.
Major suppliers in this subsector include:
Turnstar Systems
Dortech
Trellicor
Centurion Systems
MAT Technologies
BoomGate Systems
Flow Systems
Nemtek
AIT
MMA Fencing
Gallagher Power Fence SA
Blick South Africa
QD Group
Bosch Security Systems
Regal Eltro
Alltech
Siemens Building
Expanda
Card Control Systems
CCTV Security Surveillance
Gauteng
Technologies
Sitronix
GE Security (Africa)
Space Television
Honeywell Southern Africa
Westec Electronics
Physical security
Although security technology is converging increasingly
with Information Technology, there is still a need for
devices like locks, seals, vaults and safes for the
safekeeping of valuable items, even within a secured
environment. Whilst relatively unsophisticated in their
historical form, new technology is being integrated into
conventional physical security solutions in order to
make them progressively more tamperproof.
Masc Solutions
Perimeter security
The outermost ring of security in any situation, this
layer of security comes in many forms, including walls,
fences (including palisade and electrified), booms,
barriers, exterior beams and intrusion sensors. This
aspect of security forms a significant portion of the
South African security market.
While the local market for the larger walk-in safes is
saturated, the boom in building has increased the
demand for the smaller safes for example those
associated with hotels and private gun safes. With
regard to locks and key systems, the South African
market is exposed to and demand the same features of
sophisticated global products.
Perimeter security is a standard feature of private and
business properties in south Africa. While it is the first
line of defense, it is usually integrated with other
aspects of the total security solution, including Access
Control, Surveillance and Alarm & Intrusion Detection
equipment.
Equipment in this sector includes: Locks and Keying
Systems, Security Seals, Bags and Labels, Safes and
strong rooms (Category 1 to Category 4), Security Pay
Windows and Pneumatic Tube Systems.
Equipment in this sector includes: Gate and Door
Automation, Booms, Barriers and Bollards, Turnstiles,
Mantraps and Access Booths, Telephone Entry/
There are many sub-categories within this sub-sector
but a list of the major players is available at the
directory: www.secureit.co.za
6
MADE IN SOUTH AFRICA
In addition, there are several independent South
African system manufacturers that integrate foreign
components into very cost-competitive products for
mostly local end-users.
South African companies are strong players in
designing and manufacturing electronic security
products.
A significant proportion of products in the Access
Control, Alarms, CCTV, Communications equipment,
Fire, Perimeter Security, Physical Security and Vehicle
Security sub-sectors are locally manufactured.
Local manufacturers say that centralised control over
the manufacturing process, from start to finish, is
critical to delivery quality. And ensuring quality and
reliability of security products is a key contributor to
what makes South African manufactured products
competitive.
The Access Control, Perimeter, Physical Security and
Vehicle Tracking sub-sectors, in particular, are
dominated by locally manufactured products.
Slightly more than half of the major South
Africa based manufacturers (51.5%) are
involved with the manufacture of access
control equipment. Some 39.4% are
manufacturing perimeter security, while
36.4% manufacture alarms, intrusion
detectors, control panels; 33.3% are
making CCTV systems and surveillance
equipment; 24.2% making Fire protection
equipment; and 21.2% are developing and
making vehicle security, tracking, recovery
equipment.
This highlights the high local component
aspect of both the Access Control and
Perimeter Security sectors of the South
African market. The relatively low
percentage of companies involved in vehicle
security manufacture is an indication that a
few companies have focused on this
segment, which they dominate.
Both the Alarms and CCTV sectors have
locally manufactured components. In the Alarm and
Intrusion Detector sector, this comprises conventional
Alarm Control Panels and Radio Transmitters in the
main, with a smaller Intruder Detection component.
There is also a small, emerging but potentially
The above graph shows a steady increase in the
percentage of locally manufactured components across
all categories from 2002 to 2004. This trend is set to
continue but already in 2004 in all but Fire and CCTV
related products more than half of the products
available are manufactured in South Africa.
7
significant GSM Communicator market evolving.
established network of distributors, installer/system
integrator companies or OEMs. Larger companies do
sell directly to end-users, but are very cautious not to
undermine the installer base. This distribution network
extends into Africa where there are common security
issues and a preference for doing business with South
Africa. This makes the local distribution network a good
vehicle to gain access to African markets for
International vendors.
But the local manufacture of CCTV components appears
confined to the local assembly of DVR products and the
OEM rebadging of CCTV cameras and accessories.
There are also a number of locally developed video
control, and video processing systems which have been
developed for sophisticated military, high-end industrial
and mining applications, as well as casino applications.
The Fire Protection sector boasts a relatively important
locally manufactured component, both in terms of
Detection Devices and Control Panels, which will
continue to grow in the context of highly priced
imported products.
Exports and
markets
Dealing
with
foreign
A large portion of those exporting, export firstly to the
rest of Africa. A smaller number of companies are
exporting to Europe, Australia and South America.
Some are exporting to USA/Canada and a few to Asia
and the Middle East. Middle East countries prefer
products from South Africa above US and EU for obvious
political reasons.
These statistics indicate an increasingly self-reliant
industry designing, integrating and manufacturing
greater portions of their own products that are
becoming progressively more exportable.
Distribution
Distribution in South Africa is largely through a well
OUT OF AFRICA A BROAD RANGE OF
SOLUTIONS TO A BROAD
RANGE OF INDUSTRIES
The manufacture of South Africa products according to
standards and open architectures is determined by the
requirements of the market who want integrated, best
of breed security solutions. South African solutions
providers have become experts at taking best of breed
whether it be produced by South Africa manufactures or
imported, adapting them to the unique South African
context and making them work together to fit customer
specific needs.
Important end-user segments include large
transportation and infrastructure projects at airports,
rail and metro stations, power plants, the mining
industry, refineries, chemical plants, health-care
providers, educational and research institutions,
agencies (including immigration and border control),
banking and finance, and retail (including convenience
stores, gas stations and shopping malls).
8
The Industrial Market Segment
company also wanted to integrate Access Control and
T&A systems to improve control and accuracy as well as
streamlining some of the processes involved. Reliability
was another key requirement.
This includes manufacturing, mining, heavy industrial
and factory type businesses.
Manufacturing
The complete solution was supplied and implemented
by Blick SA, based on Sagem biometric fingerprint
readers, and a combination of BlueLine Professional
integrated access and time management solution
and Time Genius software solution.
Manufacturing sites are vulnerable to theft of raw
materials, finished goods or the theft of services by
employees. This is a particularly vexing problem
in South Africa. The nature of industrial sites
has changed over the past 50 years, away
from the use of high walls towards more
ergonomic and user-, employee- and
client-friendly designs using
palisade, diamond mesh fences and
the suchlike.
Certain change management processes
needed to be implemented in advance,
particularly with regard to the training
of staff and acceptance by staff and
unions. The biometric fingerprintbased system did not infringe
employee rights as the system
South Africa providers are
stores a template derived from the
experts in adapting solutions
actual
fingerprints, not the
to fit customer specific
fingerprints themselves. Workers
needs.
also benefit from the improved
accuracy of time-keeping
functionality.
Manufacturing businesses have a
need to detect intruders due to the
danger of industrial espionage.
Also pharmaceutical companies
have recently been targeted by
animal rights extremists, whose
methods are becoming increasingly
violent. A further need for security
equipment is to deter petty vandalism.
The risk of fire is great in manufacturing
installations (particularly in metal fabrication
and paint shops), where electrical installations of
any kind may cause fires.
The company achieved significant
reductions in administration time, effort
and cost with the new Access Control and
T&A solutions. They also saved a lot of
administration time and effort through the smooth
integration of the T&A data into their payroll software.
A good example of how South African security
companies have dealt with Access Control and Time &
Attendance system requirements in the manufacturing
environment is given by British-based furniture
manufacturer Pat Cornick, a division of Steinhoff Africa,
which needed to upgrade its card-based access control
(AC) and time and attendance (T&A) systems.
Mining
The company's existing card-based system was reliable
and did have low-running costs, but the technology was
outdated and many components were becoming hard to
replace. Pat Cornick wanted the advantages offered by
the new biometric fingerprint-based systems. The
Mining is an inherently high-risk activity so there is a
need for strict Access Control in order to provide a safe
working environment that meets and preferably
exceeds the provisions laid down in the Health and
Safety (Mines) Act. Lonmin needed to know exactly how
The case at Lonmin Plc, the world's third largest
platinum producer, with four operational mines in South
Africa and over 26,000 employees, is a fairly typical
example of security projects undertaken in the South
African mining industry.
9
SASOL’s security
requirements set the
standard for South African
suppliers ans solution
providers in the oil and
petrol-chemical field.
10
Banking and Finance
attacks are enormous, so security is at a premium.
The financial services industry in South Africa is very
sophisticated and mature. Banks are particularly
demanding customers who have to comply with
international standards like Basil II. Concern about
theft and fraud are the main security concerns of banks.
Of course, banks will always be vulnerable to 'hold-ups',
because large sums of money naturally attract
criminals, and cash-in-transit heists are a common
feature of the criminal landscape.
It goes without saying that whilst Airports require
comprehensive security, all forms of transportation are
at risk from sabotage. Of course there is also increased
need for efficiencies to be maximised and bottlenecks to
be removed from the system.
Transportation
Property Management
Hijacking of goods in transit remains a major problem,
and both Vehicle Tracking and Recovery services, as
well as Fleet Management solutions have capitalised on
this.
Growthpoint Office Park in Midrand is a busy place, with
over 2,500 tenants and visitors requiring entry and exit
every day. The main issues confronting Growthpoint are
security, the cost of replacement access cards and the
inadequate system of enrolling visitors.
Fire risk in transportation depends on the type of freight
which is carried, and of course the mode of transport.
Spoornet is the largest division within Transnet, a
commercialised organisation with the South African
State as its sole shareholder. Spoornet represent the
Clearly the physical access of staff into high-security
group's rail freight and long distance passenger
areas needs to be controlled. There is, however, an
transport interests. In order to protect such valuable
increasing understanding of the need for logical access
assets, fleet management company Viamax Fleet
control to business networks. The convergence of
Solutions, which supplies vehicles to Spoornet/Transnet
physical and logical access control will be a dominant
on fleet management leasing, installed the Orchid
factor in this market segment. South Africa has perhaps
satellite tracking systems into their fleet last year.
one of the biggest role-outs of Automatic Teller
Spoornet reduced significantly the number
Machines (ATMs) and Self Service Terminals
hijackings or attempted thefts with 100%
(SSTs), these need to be secured and
recovery. The Orchid Fleet Management
protected from vandalism.
Software was also loaded onto the
Defrauding ATMs users through the
ViaMax server for Depot Managers,
installation of dummy card readers,
Operation Technicians and Technical
card skimmers and hidden pinholeEngineers to access reports and
cameras is a problem only now
vehicle positioning in realtime. Not
emerging internationally, but due
The South African financial
only did Spoornet benefit from the
to its sophisticated banking
services industry is very
normal GPS/GSM tracking system,
infrastructure, these are security
sophisticated and mature.
the Orchid products assist with
issues that South African banks
monitoring things like kilometre
have been successfully tackling for
readings, fuel usage and driver
years. Innovative locally
protection. Systems like this are an
manufactured ATM cubicles, allied
invaluable tool to companies like
with conventional CCTV solutions
ViaMax, taking risk management to
address these security issues.
another level. There are also insurance
Due to their reliance on IT, banks and
issues to take into account. Owner-drivers
financial institutions also need to take
in particular are increasingly being held liable
precautions against criminals hacking into computer
for any cargo and vehicle-related mishaps, and they
systems and disrupting and defrauding them. There
could lose everything should cover for related and
have been several recent cases of electronic identity
personal risks prove inadequate. For owner-drivers it is
fraud, and the securing of customers accounts is a high
therefore critical to make provisions for risks through
priority in South Africa.
adequate insurance products which are underpinned by
reliable fleet management systems
Transportation systems seem to have a special
attraction for vandals. However, railway installations
and equipment face repeated and ongoing threats from
vandalism and graffiti. Trains in particular have been
targets of mob violence, in response to high levels of
crime committed on them.
Visitors do not wish to be delayed filling in forms and the
security guards manning the Access Control points are
too busy to monitor and match visitor entry and exit
events.
Growthpoint wanted to raise the level of visitor security
processes, thus creating a deterrent to would be
criminal elements. Designing such a turnkey solution, it
Due to the protected nature of air-transport, vandalism
is less prevalent. However, the security risks from terror
11
is imperative that all underlying factors are taken into
account i.e. traffic patterns (peak hours), tenant
volumes, visitor traffic during peak hour periods and
enrolment procedures.
systems during the implementation phase. The data
now flows automatically back into the SAP payroll
module. The processes are highly efficient. The system
provides real time information on employee clocking as
well as a detailed history. To have reliable information
on employee time-keeping delivers a real saving to the
business.
Aludi, who supply and install integrated security
solutions in the commercial, industrial and financial
sectors, recommended the integration of the biometric
Access Control system with CCTV surveillance
cameras as a value-added component of the
solution. The system has improved the
service levels experienced by tenants,
which helps the company to maintain
occupancy levels within the office
park adding a competitive edge over
their competitors.
Distribution logistics and
warehousing
Commercial Market Segment
This market segment covers Retail
Stores, Super Markets and Shopping
Centres.
Perimeter security is the
‘first line of defence’ for
organisations and CCTV
surveillance is well
established in South Africa.
Retail
Shops are soft targets for theft,
due to the combinations of large
numbers of customers and the
ready availability of a wide range of
goods and materials. This is
exacerbated by the trend towards
supermarkets and life-style based
malls, with open shopping areas
where customers browse and choose
items for themselves.
Vector provides specialist logistic
services to the food and foodrelated industries across the retail,
wholesale and food service sectors.
Vector services include warehousing,
selling, order processing, delivery,
merchandising, field marketing, credit
management and administration. The company
moves more than 1,300 tons of food products across
multiple temperature categories throughout South
Africa using more than 190 trucks and 1 900 members
of staff every single day.
Large malls in particular are a ubiquitous
feature in cities throughout the country and are
increasingly becoming targets for armed gangs.
Because retail environments are designed to encourage
open access, the emphasis in security solutions lies with
Electrical Article Surveillance (EAS) systems, CCTV
surveillance, manned guarding and other very visible
security solutions.
Efficient and effective control and direction of the
physical flow of assets and resources is critical.
Commitment to stringent standards of operational
performance is central to the continuing growth and
profitability of the company.
As much as 5% of retail turnover is lost due to
shoplifting and dishonest staff. Employee preselection
is an important security service in addressing the issue
of internal employee theft. South African statistics
indicate that in any given month, as many as 2 to 3% of
screened employees may have criminal records.
From a T&A point of view, the data from the T&A system
had to flow into the SAP payroll module. Data from SAP
HR was used to populate the Access Control and T&A
12
Government Market Segment
A practical application of intelligent video surveillance is
a key military base that implemented a NiceVision
system to alert guards to potential threats near the
perimeter. Conventional detection systems simply
didn't offer the level of situational awareness that was
required. The video analysis system was configured to
spot pedestrians using an adjacent public right-of-way
and raise an alarm if someone loitered near the
perimeter for longer than a predetermined time. As a
result, guards are assured of being alerted to potential
threats and perimeter security is significantly
enhanced.
Public Utilities
The most critical area in the public utilities sector is that
of power generating plant locations. Of these, nuclear
power stations are the most sensitive, not only because
of the inherent dangers arising from the process, but
also the vandalism targets that they form for
environmental protestors.
This is a relatively low threat in South Africa by
comparison to European countries, which boast a
higher proportion of power generated by nuclear power
stations than is the case locally.
Eskom (power) and Telkom (telecommunications) have
significant cable theft and service theft problems which
require substantial investment in security solutions to
manage and minimise potential service disruptions.
These utilities are typically protected by customised
configurations of perimeter security, alarms,
surveillance of key installations and where justified
guards (who themselves have to monitored) and access
control solutions
A key benefit of using video as a detection system is the
ability to instantly review events leading up to the
detected threat situation. Operators can simply click on
a video alarm and immediately see how a suspect has
behaved prior to the alarm - such information is crucial
to deterring probable intent. Is the suspect a political
activist, trying to sabotage the organisation? The
operator can immediately see what has happened so
far, while simultaneously being able to view the live
situation. This capability provides detailed information
required to make accurate decisions quickly.
Military
Ports
The military demands high specifications for security so
while the solutions will be conventional they will tend to
be the more sophisticated and expensive type.
The major challenges facing SETV, a division of
European-based Bollerey PLC, when they took over the
operation of the container terminals from the Ivory
Coast Ports authorities, subsequent to the privatisation
of this facility, was to improve efficiency and eradicate
the common occurrence of the theft of entire containers
from the port.
Perimeter security is the "first line of defence" for
sensitive organisations and CCTV surveillance is well
established as a tool to help manage perimeter security.
However, it is now possible to get far greater value - and
better security - from perimeter CCTV, by using it to
provide an additional, highly reliable detection
capability. This capability is one aspect of what is being
called "Intelligent Video Surveillance" and it is made
possible by advances in real-time video analysis. Nice
Systems pioneered this concept with the NiceVision
solution, which is now being used by organisations
around the world to enforce perimeter security and
protect high-risk and high-value assets.
There was a combination of factors contributing to the
challenges. Abidjan is one of the busiest ports in west
Africa, handling over 90,000 containers a year in
facilities that operate 24/7, 365 days a year. These high
volumes of traffic, combined with an entirely manual,
paper-based 'control' system combined to produce a
chaotic situation that produced unacceptable levels of
risk associated with theft and fraud for SETV.
13
The solution was required to provide a maximumsecurity, paperless Access Control system that could
track each container arriving or exiting the port
facilities. Every individual and vehicle associated with
every movement of the container had to be
electronically recorded at every stage of the process.
Another major aspect of the contract was the training of
local technicians to understand Standard Operating
Procedures and to operate and maintain the system.
service hospital that provides Austin, Texas and the
surrounding communities with state-of-the art
healthcare services. NAMC required higher levels of
security than were already in place, but, like most
healthcare organisations, also needed to find ways to
manage costs. System Integrated G2 Security, a South
African company, recommended moving AC to a
network based product that would leverage existing
network infrastructure and offers increased scalability
and flexibility. The system's Web-based architecture
provides remote monitoring capabilities from any
computer connected to a network and remote access
for maintenance. Combined, these factors reduce the
cost to install, operate and maintain the system. Moving
to the network-based S2 NetBox immediately
streamlined the way security is managed at NAMC. But
the technology has also inspired NAMC to develop a new
roadmap for future security initiatives.
There were also several complicating factors, such as
catering for extreme climatic changes and floods, power
surges and frequent outages. A fundamental part of the
design hinged on the concept of 'man trapping' at each
entry and exit point of the facility. There are five
pedestrian, one car and 12 truck lanes in total. Each
entry and exit point of the facility has two barriers, so
that all traffic can be halted between the barriers and
the details of each person, vehicle and container
recorded for 5 seconds on CCTV and also, where
appropriate, on biometric fingerprint readers. Turnstar
Systems, a South African company, supplied the
maximum-security double and single full-height Titan
turnstiles and the vehicle barriers.
Asset tracking and RFID based solutions are also used in
the healthcare environment to track babies and
expensive equipment.
The CCTV equipment, consisted of high-speed cameras
Educational Institutes
housed in protective domes and features 360o pan
The Cape Peninsula University of Technology
and tilt capabilities. The cameras were
(CPUT) was experiencing a major problem
interfaced with a large-scale 2TB RAID disc
at one of its student residences, the
array, holding up to 12 months of CCTV
temporary home of 865 students,
data from the cameras. Data includes
because some students were
date and time stamps, vehicle
bringing in non-residents for
number plates, personnel
extended visits.
identification details and container
RFID based
tracking numbers. As a result theft
There were two main aspects to
solutions are used in the
was reduced to nil.
this problem: Non-students taking
Institutional
Segment
Market
healthcare and electrical
environment for tracking
purposes.
up extended occupation in the
residence were using all the
residence facilities without paying
for that privilege, so CPUT was
footing large bills for the provision of
these services; and the safety and
security of the genuine students was
being compromised, as there were many
unknown people living in the residence.
This segment incorporates
Healthcare, Educational Institutions
and Museums.
Emergency Services
Genxsys, a security solutions provider proposed a
biometric fingerprint-based solution to eliminate the
need for cards and therefore stop unauthorised entry to
the residence. These biometric fingerprint readers were
placed on existing turnstiles using Softcon controllers
for the access control anti-pass back function.
Hospitals experience quite high levels of petty theft:
bed linen, cleansing material, toilet articles, food, drugs
and dressings are stolen on a large scale. Hospitals are
also the targets for unauthorised intrusion of a nonviolent, and in some instance violent, kind.
Police stations, fire stations and ambulance stations
usually require some form of access control, even
though such establishments may be continuously
manned.
Other Market Segments
This sector includes Sports Facilities, Casinos, Hotels &
Resorts.
Healthcare
Museums, art galleries and historic places have
particular problems in securing their exhibits from
North Austin Medical Center (NAMC) is a 210-bed full
14
theft, whilst at the same time permitting the public to
view them freely.
The move to digital is taking place in this industry, as
the benefits of digitization are well understood, with a
number of South Africa casinos in the process of, or
planning to upgrade security facilities.
Similar problems face places of entertainment, such as
cinemas and sports arenas; in both of these cases,
access must be limited to those who have paid, yet
the exits must be unobstructed at the
conclusion of a performance or during an
emergency.
Casinos abound in South Africa, and
boast in most instances world-class
security infrastructure. Real-time,
2 4 - h o u r s s u r ve i l l a n c e i s a
legislative requirement for casino
operators, and because they are
recreational facilities, security
needs to be as unobtrusive as
possible, a challenge in itself.
As the tourism industry is one of South Africa's
fastest growing industries and is set to grow
substantially leading up to 2010 World
Cup, it goes without saying the
established hotel chains, and even the
smaller Guesthouse and Bed &
Breakfast locales, are all taking the
The South African
safety of their guests seriously.
Security, as it pertains to the
electronic security industry
h o s p i t a l i t y s e c t o r, i s w e l l
is advanced to address
understood,
and growing all the
security needs leading up to
time.
the 2010 World Cup.
The current Gaming Law in South
Africa states that camera recordings
must utilise video tapes in 3 hour mode
in realtime - 25 frames per second per
camera. With the current growth of digital
video systems there are now solutions
available that can offer alternatives that give a far
wider range of options than were ever thought possible.
Pharmaceuticals
Electronic risk management security
forms part of an overall intelligent
integrated security concept at Pfizer's new
five-storey head office in Sandton,
Johannesburg. Designed by Taemane Consulting and
implemented by IDtek Solutions, the building
represents one of the leading integrated security
electronics installations in Sandton.
Limiting factors to date in securing casinos have been
the exorbitant costs of integration, the Gaming Law
itself, and the belief that these systems are not fully
stable. Vision Catcher successfully launched a new
realtime system, the SecureVu Join. Systems like this
offer full integration with an easy stack solution an
excellent replacement for the traditional option of the
analog route through video recorders.
The solution consists of an access control and CCTV
system, an intercom / panic system, intrusion
detection, guard tracking, perimeter security and parcel
and pedestrian x-ray equipment. The whole system is
controlled by a single control room which is equipped
and operates on the back of Impro's IXP400 system and
a Pelco CCTV Switching Matrix.
Those companies who perpetuate the need for small
modular type embedded systems will be left behind
compared with those companies embracing Open
Architecture and the need to tie in with the bigger
picture. This solution for a complete IT backbone within
each casino is where matters lead. Decisions are
therefore made on an overall solution rather than the
historical divisions of CCTV, access control, fire and
alarms, building management, etc.
The intricacy of the undertaking becomes apparent
when one considers that the system controls and
monitors around 35 doors, 45 CCTV cameras,
pedestrian and vehicle control to the site; 50 passive
infra red detectors, numerous door monitors, multiple
fixed and remote panic buttons; over 20 intercoms with
two master panels; 600m of 24 strand electrified
perimeter fencing; and guard tracking at different
points throughout the site.
15
MARKET OVERVIEW ELECTRONIC
SECURITY PRODUCTS AND SERVICES
Size and Growth
Industry Structure
The demand for security products in South Africa is
strong, and its corporate customers are sophisticated in
their requirements.
The local industry is made up of 4 distinct categories of
players placed along the value chain.
Security Equipment Suppliers: While all the of
the major International security product brands are
imported, local manufactured products have a
significant share too. In addition there are local
manufacturers that will integrate imported
components with their products to achieve the best
of both in the final product.
This is considerable given that the second biggest
market for security after the US is the EU at USD12bn.
The size of the South African Security Electronics
industry is estimated to be R30bn.
The South African market is structured in more or less
the same way as global markets, but with a major
emphasis on physical (manned guarding) security.
Distributors are nation-wide and there are a
variety of installers and system integrators, which
can be small local companies or part of a national
and increasingly multinational general security
company. It is common for a company to specialise
in more than one technology segment. Even so
there are number of businesses, often smaller in
turnover, that concentrate on a particular
subdivision of that segment. By contrast,
companies in the fire detection system integration
market, most of whom have specialist integration
skills, often integrate solutions across the board,
including surveillance, access control and intrusion
detection solutions.
Due to the trend of increasing convergence (and
integration) between security technology sub-sectors
(i.e. CCTV and Access Control and Perimeter Security
and Communications etc.), the income attributable
explicitly to one sector or another is not easily derived.
Nonetheless it is estimated that the size of the SA
market, by industry sub-sector, is as follows:
Since 1998, after a massive increase in security
spending in 1996 to 1997, the market growth has
stabilised at around 20% per annum, though some
areas, most notably physical security and fire
protection are more mature markets with lower growth.
On the other hand, access control and CCTV continue to
rejuvenate the security sector; innovation is still
important and these markets have some way to go
before their full potential is reached. Recent
commitments to substantial infrastructure investments
by government leading up to the 2010 World Cup will
see the growth rate in the sector increase substantially
over the next 5 years.
Distributors have historically focused on specialised
segments within the security industry, are now
increasingly positioned themselves in different
sectors to offset the erosion of margins in a highly
competitive environment. Access Control and CCTV
have been increasingly represented in Distributors'
product portfolios, whilst Alarms, Intrusion
Detection and Perimeter Security continue to be
important.
16
The key focus for service
providers is on security
services and value added
solutions.
17
Exhibit: Electronic Security Products and
Services Value Chain in SA
18
AN AFRICAN POWER HOUSE
The Electronics Security industry is one of a number of
related and supporting industries whose own strength
and international competitiveness strengthen that of
the local security industry.
lifecycle of products and services in the mining and
armaments industries, errors, oversight or failure could
result in loss of life, and disaster. The combination of the
above, has led to a unique response to the challenges
faced by our industries, and therefore a unique blend of
capabilities and skills.
The guarding, armed reaction and monitoring industry
is a uniquely South African phenomenon in the degree
to which the middle- to upper-income brackets have
come to rely on as protector of choice. The security
industry has developed software and hardware
solutions to support this private security
industry, and these solutions are
themselves exportable, particularly in
light of the trends towards private
security services across the globe (as
public police forces become more
and more stretched).
The Financial services industry is one of the largest
economic sectors and is exceptionally well developed.
This sector is a major consumer of security
products, and a major innovator in their
application.
Insurance companies place a strong
requirement on their clients to secure
insured items thus driving security
demand.
South Africa's legal system has
The financial services
The state owned and funded arms
proven itself quite capable of
manufacturer, Denel, has played a
industry is a major
e
nforcing copyright and
key role in stimulating locally
consumer and innovator of
preserving
intellectual property
developed security technology.
security products.
rights, which has indirectly allowed
Denel leads the world in several
access to best of breed
areas of military hardware from its
technologies
from which local
state-of-the-art Rooivalk helicopters
manufacturers
have
learnt to develop
to sophisticated ammunitions. Denel
their own, market leading, and in
is very export focused with some 56%
many instance world-leading solutions.
of its revenue being derived from
exports. Denel and other military
The rapid deployment of GSM networks and
institutions have also provided a large number
the acceptance of mobile communications
of active engineers and technicians who were trained
solutions was due to the need to meet many of the
in the defence and aerospace industries with a strong
fundamental needs of rural Africa. These same
emphasis on systems engineering and project
technologies extend the usefulness and value of
management
security solutions enabling them to be monitored,
configured and controlled via wireless interfaces. There
Safety requirements from a mining industry faced with
has been an unprecedented uptake of cellphones and
operating the deepest gold mines in the world as well as
cellphone based technologies in South Africa (this has
methane rich coal mines, are very demanding. In these
also
had an impact on criminal behaviour). Using cell
industries, a disciplined approach to design and
phones to track and locate their owners has been used
implementation are non-negotiable. Throughout the
19
very successfully in a myriad of applications.
Association of Automobile Manufacturers of South
Africa reports that South Africa was the best performing
The construction industry may be seen as one
market internationally in 2004 and 2005 and it
barometer for the security industry. For new
continues to grow in the order of 24% per
security solutions to be installed, either new
annum. The BMW plant in particular is
buildings must be built, or existing
recognised by BMW as its best in the
systems must be updated and replaced.
world. Besides being a big consumer
Currently South Africa is experiencing
of security products to secure its
a building boom, in particularly office
plants and for incorporation into
park and suburban estate projects
vehicles, vehicle theft and
where security is a key competitive
The South African
hijackings for distribution into
advantage. At the same time there
produces some of the
Africa especially of luxury vehicles
is major infrastructure investment
world’s best vehicle tracking
is a major problem. The security
(roads, rail, power generation,
technology.
industry has responded with some
telecommunications, broadcasting
of
the world's best vehicle tracking
etc), all of which is lending itself to
technology.
increased investment in security
technology, and innovation in its
application.
The global electronic components
supply chain is well represented in
South Africa via Avnet Kopp and Arrow,
which is important for local industries to
respond quickly to changes in demand and
include the best available components in their
equipment.
The vehicle manufacturing industry is
excellent with all the major brands, like
BMW, Volkswagen, Nissan, Ford, Renault,
Toyota and Diamler Chrysler being manufactured
for local consumption and for export. The National
WHY SOUTH AFRICA?
While South Africa is regarded as a developing nation it
has a very well developed, first world economy. The
government has committed a massive investment into
the development of infrastructure to stimulate rapid
progress in the industrial sector, on export growth,
trade performance and on improving education, skills
and productivity.
Securing rail lines from cable theft has resulted in
particularly innovative RFID solutions. The Gautrain, a
high speed train service in the economic hub of the
country, is another big capital project with security
implications.
Yet another project receiving investment from the
government with significant implications for the
security industry is the infrastructure development
required to support South Africa's bid to build the
Square Kilometer Array telescope, which will be the
largest of its kind in the world, and new Industrial
Development nodes, such as Coega in the Eastern
South Africa will be hosting the 2010 World Soccer Cup,
which implies a massive investment in security and a
stimulation of the local security industry.
Transportation is well developed both in roads and rail;
this has implications for vehicle and container tracking.
20
Cape, which has just secured multi-billion
investments in its first aluminum smelter.
US$
cheaper broadband access. Locally manufactured
products will respond quickly to these developments.
Since 9/11 foreign trade policy, particularly of the US,
has had a dramatic impact on the requirement to track
overland containers, and to secure the harbours,
airports and trade-routes of those countries hoping to
do business with the US.
Economic growth has outstripped power supply,
resulting in brownouts, power troughs and voltage
spikes. South African companies have become adept at
developing systems to filter power and ensure that it is
clean. Their electronic security products have to be
robustly capable of auto-shutdown, recovery and
reboot operations without warning. Lightning is also a
compounding problem attended to in electronic security
products, and with South Africa's economic hub,
Johannesburg, being a high altitude city, lightning
threats are heightened and equipment protection is
doubly important.
South Africa, as the economic hub of sub-Sahara Africa,
has 4 key harbours, and several airports, through which
the majority of international trade for the region
passes, and this infrastructure is being continually
upgraded in order to meet increasingly stringent foreign
policy/trade requirements.
Education in Universities produce world class engineers
whose skills are sought world wide. Yet comparatively
speaking such skills are inexpensive.
IT and Telecommunications
infrastructure
Finally, it is worth mentioning that South African listed
entities must comply with corporate governance regime
as set out by the King II code of practice, which is
recognised as a world-leading approach to the issues of
corporate governance, and ethical leadership.
Historical constraints in telecoms bandwidth have
forced manufacturers to develop very efficient data
transfer technology. This constraint has lead to
manufacturers developing GSM alternatives to reach
large areas not covered by traditional land lines. But the
telecommunications industry is rapidly transforming
with the introduction, by government, of a 2nd and 3rd
network operator to increase competition and provide
South Africans are serious about fighting crime as a
destabilising force and have applied considerable
resources and ingenuity to contain and prevent crime.
21
SOUTH AFRICA ALIVE WITH VALUE
The country is economically and politically stable and
any problems are actively being addressed.
extends far beyond commitment to the job; it goes to
the core of bottom-line success through loyalty and
commitment to the company, as well as a belief in
teamwork that enables companies to provide the best
results for its investors.
Ultimately, South Africa's value proposition is one of
synergy with its investors in terms of culture and ethic.
The country is stable and able to provide high quality
services in the IT security industry as well as many
other industries. It is true that South Africa's
professionals are valued in the world, being among the
hardest working and most dedicated.
Notwithstanding the high quality of its human
resources, the cost of employment in South Africa is far
lower than in Europe and the U.S.
South Africa's offering is not only socially and culturally
viable, but economically attractive as well. It is
underpinned by government commitment to promote
industry and the mobilisation of resources through a
collaborative and united effort.
Living the good life
South Africa has a favourable environment for longterm investment. The standard of living is significantly
higher than most of the countries on the continent, even
rivalling more developed nations. South Africa's major
centres are highly cosmopolitan with well-developed
infrastructure and services. Property in the country has
also become an internationally sought after commodity,
particularly since the country is well known for its
balance between development and conservation and its
respect for the aesthetic value of natural surroundings.
Captive market
Africa offers its investors a captive market in the IT
security industry - one that is hungry for the products
and services on offer. South Africans in particular, have
been at the forefront of developing and using IT security
technology know-how and demand the latest, most
efficient IT security solutions to safeguard business,
governmental and other organisations. The financial
industry counts among the most mature users of IT
security technology in the world. As members of a
Westernised, cosmopolitan society, consumers and
business decision-makers are motivated to adopt wideranging and effective technology, services and
infrastructure.
Committed to success
South Africa's economy is built for the investor. Not only
is the South African market filled with opportunities, but
government and industry actively support and endorse
new business and help investors achieve the greatest
results and best value for their investment.
The ITC & Electronics industry has been earmarked as a
priority sector, with government striving to create an
attractive and supportive environment for investors by
ensuring ease of set-up and providing incentives. These
incentives include Urban Development Allowances,
which have been put in place to counter decay and
stimulate urban regeneration. All taxpayers
Experienced workforce
South Africa's people are highly skilled and committed
in their work ethic, with some of the lowest attrition and
absenteeism rates. The South African work ethic
22
refurbishing a building within a designated urban zone,
or constructing a new commercial or residential building
in such a zone, are eligible to apply for these
allowances. Various allowances have been proposed,
including a 20% straight line depreciation allowance for
refurbishment, plus a 20% straight line depreciation
allowance in the first year and 5% in each year
thereafter for a new construction.
currency in which the loan is raised.
The adjustments made in terms of the transfer pricing
legislation are also deemed to be dividends that are
subject to the Secondary Tax on Companies of 12.5%.
The Investment Promotion and Facilitation Unit of Trade
and Investment South Africa, the national export and
investment promotion agency, as well as a division of
the Department of Trade and Industry, is committed to
providing investors with a complete range of support
services. These include:
There are also important Key Foreign Investment
Factors that favour the overseas investor in South
Africa. These include:
Investment information services - investor guides,
economic information, details of incentive programmes
and cost of doing business in South Africa
Foreign investment rules - no government approval is
required for foreign investors to establish a new
business in South Africa, apart from the approval
required under the exchange control regulations.
Investment promotion activities - seminars, investment
missions, exhibitions, conferences, both in South Africa
and abroad
National participation - no restrictions are imposed on
the type or extent of investments available to
foreigners. There are few legal restrictions
on the foreign ownership of real estate
and no locations where a foreign-owned
business is prohibited or investment is
officially discouraged.
Investment guarantees - South
Africa has signed 10 bilateral trade
agreements with other countries
for the promotion and protection of
investments, with more still being
negotiated. South Africa is also a
signatory to international
investment protection agreements,
including the MIGA of the World
Bank.
Project management and facilitation
services - visits to South Africa, liaison
with relevant authorities in terms of
approvals, investor aftercare etc.
South Africa offers the
investor with a staple
economic environment for
investment to thrive.
The Investment Promotion &
Facilitation Unit also operates in
close co-operation with the
investment promotion agencies
within each of South Africa's
provinces, as well as with relevant
chambers of commerce, industry
organisations, foreign embassies
and foreign organisations
represented in South Africa.
Prospective investors are welcome to
contact the Unit at +27 12 394 1033/
1202, for assistance regarding all aspects of
investing in South Africa.
Exchange controls - The South African
Reserve Bank (SARB) has the sole
responsibility for administering exchange
controls. Some responsibilities are delegated to the dti
and the commercial banks. Some exchange controls
that might affect potential investors are:
Hitting the bottom line
Prior approval is required if a South African resident is
borrowing from a non-resident.
Africa offers a continent full of accessible investment
markets that translate into bottom-line profits. South
Africans in particular, are passionate about technology
and are open to new ideas that will increase market
share and add greater benefits to business and
consumers.
Local borrowing restrictions apply to "affected
companies", i.e. companies in which 75% or more of
the shares are owned by non-residents. The restriction
is related to the net worth of the company and the
amount of foreign participation in the company.
Foreign exchange may be provided for the payment of
imports, if there is documented evidence as to the
receipt of goods in South Africa.
Cosmopolitan business culture
There is no restriction on the repatriation, or on the
transfer of dividends or branch profits, provided that
they arise from normal trading activities.
South Africa is an excellent hybrid of global culture and
provides the investor with a stable environment both
economically and politically, for investment to thrive. It
is the gateway to the continent and the extensive
opportunities to be found here are unequalled.
Interest payments are also freely transferable provided
that the loan has been approved in advance by SARB
and the interest is related to the market rate of the
Investing in South Africa means investing in a
nation alive with possibilities.
23
INDUSTRY PARTICIPANTS
Boomgate Systems
Website: www.boomgatesystems.co.za
The list below is of the most prominent players in the
industry but is by no means complete. All of the
companies mentioned in this report and a more
comprehensive list of suppliers per the many
subsectors of the electronics security industry are
available at www.secureit.co.za
Boomgate Systems manufactures vehicle barriers; high
security spike barriers; single direction traffic flow spike
barriers; road blockers/rising curbs; manual barriers;
turnstiles - all types; automated pedestrian barriers;
card dispensers/card capture units; parking control
equipment; gooseneck stands; magnetic locks;
bollards; walk-through metal detectors. The company
also designs and develops new products.
Abloy
Website: www.abloy.co.za
Abloy Smartdisc - a new technology from Abloy, which
combines award-winning mechanical locking with a low
power electronic component. The mechanical lock
guarantees physical security, whilst the electronic
component makes it possible to log information, such as
date and time of opening, which keyholder, etc.
C-track Secure
Website: www.ctrack.co.za
Johannesburg stock exchange-listed DigiCore Holdings
is a global player in the vehicle tracking and fleet
management systems arena, with over 15 years' track
record. Today, the C-track range is delivering tangible
business benefits to customers across a whole variety of
fleet types, including service, fleet, haulage, couriers,
logistics, blue light and emergency vehicles with in
excess of 150 000 installed systems in 21 countries on
four continents.
ADI International
Website: www.adi-intl.co.za
ADI International is a leading security and low-voltage
distribution company with over 34 branch locations
across 14 countries in Europe, Middle East and Africa.
ADI is a one-stop solution provider for security
products. ADI South Africa's product category range
includes CCTV, intrusion, access control, fire detection,
sound and communication.
Cathexis
Website: www.cathexis.co.za
Cathexis develops and manufactures digital
surveillance systems that provide intelligent
management solutions. All systems, including
hardware and software, are developed in South Africa,
making Cathexis one of the only 'true' local
manufacturers. Cathexis offers solutions beyond
surveillance, with numerous smart features and
powerful integration tools along with its world-leading
CATVision remote monitoring software. Local
development and support ensure that Cathexis offers
the best solution in South Africa today.
Alltech
Website: www.alltechsa.com
Alltech is the manufacturer of vehicle/access and
pedestrian control equipment, such as the well-known
Alltech Grippa Spike high security barrier, the new
surface-mount Spike barrier, hydraulic Surestop
blocker, surface-mount, one-way directional barriers,
recessed one-way directional barriers, standard vehicle
barriers, all types of turnstiles, drop-arm barriers,
Speedstiles, Speedgate, paraplegic gates, reserved
parking posts, wheel clamps, goosenecks, rain covers,
logics, and loop detectors.
Cellsecure - MTNET
Website: www.cellsecure.co.za
Cellsecure is a developer and manufacturer of wireless
security and tracking systems, utilising GSM networks
worldwide as a communications infrastructure.
Cellsecure enables the control and monitoring of
security systems, electrical appliances, irrigation
systems, as well as vehicles worldwide from a
cellphone. Cellsecure products are extensively used
worldwide where GSM networks are available.
Biometrics.co.za
Website: www.biometrics.co.za
Biometrics.co.za provides corporate and government
sectors with world-class 'out of the box' and customwritten software solutions to create and integrate
biometric technology for use in securing physical,
digital and human resourced assets. The company
offers hardware and software solutions and takes
technology to new heights - elevating it with awesome
products affording both ease of use, speed and
convenience.
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Chubb Integrated Systems
Elvey Security Technologies, established in 1946, is
today a leading distributor of electronic security
equipment in sub-Saharan Africa. Elvey brings reliable
brands from leading manufacturers of intrusion, CCTV,
access control and fibre-optic equipment. These brands
include DSC, Caddx, Optex, Samsung and VisionLine among others. Elvey is an ISO-certified organisation,
offering extensive training programmes, on-site
assistance and technical support.
Website: www.chubb.co.za
Chubb Integrated Systems will be demonstrating the
latest in technology related to the Lenel Logical Access,
smartcard solutions, different card technologies as well
as the Lenel Intelligent Video products. Chubb will also
be demonstrating the integration capability of the Lenel
product and how Chubb Integrated Systems can utilise
this technology to design a full integrated system for its
clients.
Evolving Management Solutions (EMS)
Website: www.emssa.net
Dex IT
EMS offers Quorum, designed as the resource
management application, which provides the user, via
the Web, the ability to interrogate all aspects of created
site data, using a single interface. Quorum combines
transaction data from alarms, RFID, access control,
BMS, video servers and TCP/IP cameras in a form that is
relevant and critical to making day-to-day business
management decisions. The company also offers Qid,
as standalone or complemented by the Quorum
software suite. Qid offers clients true and reliable RFID
control and response management.
Website: www.dex.co.za
Dex IT provides solutions for secure access control,
biometric security and time and attendance systems.
The Dex Group of companies is an IT-based global
group, established in 1982. With offices in the UK and
South America, Dex is involved with, and implements,
access control globally. Dex also provides state-of-theart access control for corporate, industrial and
residential areas - biometric fingerprint readers and
scanners, vascular recognition/scanning, card and
ticket readers.
G2 Security
Doculam
Website: www.g2security.co.za
Website: www.doculam.co.za
G2 Security is a specialist wholesaler of integrated
security solutions. S2 NetBox is a Web-based security
management system, integrating access control, CCTV
surveillance, temperature and alarm monitoring. The
Verex Technology range of products offer a modular
platform used to build full security systems, combining
intruder detection, access control and digital video
surveillance.
Established in 1979 by Elayne Tranter, Doculam is a
preferential supplier of identification and security
solutions to a large number of South Africa's most
prestigious companies. Doculam is a BEE-compliant,
multi-national company with South and African secured
agencies for metal detectors, PVC card printers, ID
systems and access consumables, alcohol and drug
screeners, guard monitoring equipment, intelligent
facial and licence plate recognition software.
Gallagher Security
Website: www.gallaghersms.com
Eagle CCTV
Gallagher Security Management Systems has
integrated its two core businesses, namely Power Fence
and Access Control, giving a total perimeter security
solution, resulting in an intelligent Power- Fence which
can integrate other technologies, such as CCTV,
biometrics and DVRs. PowerFence is there- fore a multizone intelligent system which provides an active
deterrent with virtually no false alarms. Gallagher and
Cardax secure businesses, homes, residential estates,
airports, prisons, ports, etc.
Website: www.eaglecctv.co.za
Eagle CCTV provides the very latest CCTV surveillance
technology. Its standard product range includes lenses,
CS cameras, speed domes, DVRs, IP cameras, IP
servers, IR illuminators, camera housings and any
other products related to the CCTV industry. Eagle CCTV
also specialises in covert video surveillance products,
such as pinhole day/night cameras, wireless
transmitters and night vision cameras. The company's
CCTV training course features a comprehensive 3-day
curriculum with extensive practical training.
Elvey Security
Website: www.elvey.co.za
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GeoVision SA
Inhep Digital Security
Website: www.geovisionsa.co.za
Website: www.inhep.com
GeoVision offers the following: Feature-rich digital
surveillance product; Seamless point-of-sale
integration; 3G mobile support; DVD quality recording
by add-on GV card; Control centre that can link 25 000
clients to one site; Licence plate recognition; Access
control and biometrics, fully integrated; Object
tracking, unattended and missing objects; Advanced
motion detection for open spaces.
Inhep Digital Security will be exhibiting the new IDS
GSM module, the latest range of IDS control panels, the
recently launched wireless PIR detectors, new codehopping remote transmitters and long range
transmitters with repeaters and receiving basestations.
M.A.M.I.
M.A.M.I. offers the latest in perimeter protection on two
wires, the SPI and long-range multi beams; alarm
panels with GSM module two-way communications
through cell phones; full range of indoor and outdoor
wired and wireless detectors; multistation addressable
remote control, monitor and control of programmable
inputs/outputs; alarm monitoring equipment and
related software; long range remote controls with
ranges of up to 3 km.
HAB Fire & Security
Website: www.hab.co.za
HAB manufactures and supplies specialised security
checkpoint X-ray scanning equipment, cargo and
container scanners, metal detection equipment and fire
and rescue emergency vehicles. The company's service
team provides service and support to installations, both
nationally and internationally. HAB has in excess of 25
years' experience and expertise and is a proud supplier
to major organisations.
Martin Electronics
Website: www.sentry-remotes.co.za
HID Global
Martin Electronics specialises in the manufacture of
wireless products, including remote control
transmitters, receivers and infrared barriers.
Specialised in-house R&D facilities exist for the
development of products encompassing concept
design, prototyping, hardware and software. All
products are manufactured in-house with three fully
automated SMD manufacturing facilities.
Website: www.hidcorp.com
HID Global is a leading supplier and manufacturer in the
access control industry, serving customers worldwide
with proximity and contactless smartcard technologies;
central station managed access controllers; secure and
custom card solutions; digital identity and photo card
management software solutions, and electronic
cylinders.
Nemtek
Ideco Group
Website: www.nemtek.com
Website: www.ideco.co.za
Nemtek manufactures and distributes state-of-the-art
electric fencing products which are sophisticated in
design, complying with local and international
specifications, yet are cost-effective and user-friendly.
Nemtek will be demonstrating its recently completed
Druid and Stealth range of energisers, offering radical
new features, allowing end-users to not only control
multiple energisers on a single installation from a single
point, but also offering multiple zones, allowing for
advanced monitoring.
Ideco is a privately-owned South African group that
develops leading fingerprint systems for electronic
identity solutions. The primary distributor in southern
Africa of world-leading Sagem biometric products, it
operates the continent's sole authorised Sagem
service/repair facility. Ideco also provides
fingerprint/RFID integration, based on the Swiss Legic
smartcard systems.
Impro Technologies
Website: www.impro.net
Impro Technologies designs and manufactures a
complete range of access control and identification
systems. From entry level, single door systems, to fully
integrated, multisite enterprise systems, Impro has a
product for all access control requirements.
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Nortech International
Saflec Group
Website: www.nortech.co.za
Website: www.saflec.com
Nortech, recognised for 35 years as an independent
global supplier of electronic components for vehicle and
traffic detection and access related systems, is one of
the world's most flexible suppliers of exceptionally
stable inductive loop detectors, incorporating worldwide patents with an installed base greater than one
million channels.
The Saflec Group will be showcasing the latest in access
control software and hardware. Included are
demonstrations of its battery backed-up, offline access
control system with online components, such as CCTV
multiplexer integration, dynamic graphical control and
event feedback, Ethernet connectivity and Sagem
fingerprint integration.
Pinnacle CCTV
Sagem
Website: www.pinnacle.co.za/cctv
Website: www.sagem-ds.com
Proline CCTV - a division of Pinnacle Micro - offers a wide
range of CCTV products and solutions. For consumers
looking for security products, like CCTV cameras and
software, Proline CCTV's product offerings incorporate
all aspects and components of business security
solutions. Electronics giant, LG, has appointed Pinnacle
Micro as its sole and exclusive CCTV distributor.
Sagem Defence Security is a world-leader in fingerprint
biometrics, sales and marketing of biometrics solutions
(iris, fingerprint readers and face recognition) access
control, time and attendance. Sagem also provides a
complete range of EFT/POS terminals for banking,
healthcare, GSM and IDs.
ScanSoft
Powerhouse International
Website: www.scansoft.co.za
Website: www.napco.co.za
ScanSoft's intelligent building management system
(IBMS) offers clients complete control over all building
functions, including fire detection, security and access
control. The company's software is unique in that it can
add specialised automation to any system. This is all
done through an easy-to-use graphical interface.
Powerhousehas the Napco range of alarm, access
control, alarm locks and fire protection systems. In
addition, the Alcad range of audio and intercoms will be
on display. There will also be continuous enhancements
of the world-renowned range of lightning and surge
protection equipment with specific reference to the
CCTV industry.
SensAble Sensors
Website: www.sensablesensors.co.za
R&D Screening
SensAble Sensors is engaged in the business of
research and development, manufacture and
distribution of a wide range of electronic sensors and
access control modules. Product focus is primarily in the
standalone access control market, ranging from one to
32 door systems. New products include a Wiegand
vandalproof keypad and Wiegand RF receiver which can
be used in conjunction with the popular AccSens Plus
and DorTag Plus controllers.
Website: www.rdscreening.com
R&D Screening offers the following: X-ray screening
equipment; baggage freight containers; cargo-mobile
relocatable stationery; full/half body X-rays; chemicalbiological agent detection; explosive-narcotics
detection; handheld, walk-through metal detection;
biometrics (AFIS); service and technical support
throughout southern Africa; rental X-ray and metal
detectors; computer-based operator training system
OTS for the instruction of security personnel.
Reditron
Website: www.reditron.co.za
With more than 45 brand names in its warehouses,
Reditron offers a wide range of CCTV equipment. It
represents most of the world's top 10 CCTV manufacturers - Samsung, IndigoVision, Pelco, Sony, etc.
Reditron has opted for the latest and most innovative
products from IndigoVision, Heitel, Samsung and Pelco,
as well as access control systems.
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Trac-Tech
Website: www.trac-tech.co.za
Trac-Tech manufactures and distributes leading edge
technology for access control, biometrics, guard
monitoring and time and attendance solutions. The
company offers a range of biometric devices and is the
distributor for Nitgen fingerprint and IR security hand
geometry.
ASESA
Association of Security Engineers of South Africa
ASIS
American Society for Industrial Security
ASPA
Armed Security Practitioners Association
BAC
Business Against Crime
CAMPROSA
Campus Protection Society of Southern Africa
Using intelligent data collection terminals and userfriendly Windows-based software, Uniclox computes
time and attendance data for export to payroll systems
to generate accurate pay packets and/or controlling
access to premises to ensure only author- ised people
are on-site at any time. Cost-effective proximity
terminals or biometric hand geormetry terminals are
used to identify and verify employees.
ESDA
Electronic Security Distributors Association
FFETA
Fire Fighting Equipment Traders’ Association
FPASA
Fire Protection Association of South Africa
GFA
Gate & Fence Association
H&CSA
Hotel and Casio Security Association
Visual Verification Technology
IACSP
International Assoc. Of Counterterrorism &
Security Professionals
IFE
Institution of Fire Engineers (SA)
IMLE
Institute for Municipal Law Enforcement
LASA
Locksmiths Association of South Africa
NaFETI
National Firearms Education & Training
Institute of South Africa
NaFTA
National Firearm Training Association
NOSA
National Occupational Safety Association
PASA
Polygraph Association of South Africa
POLSA
Police Science Association of Southern Africa
PSIRA
Private Security Industry Regulatory Authority
SAAADA
South African Arms & Ammunition
Dealers Association
SACI
South African Council of Investigators
SAFSI
South Africa Fire Services Institute
SAIDSA
South African Intruder Detection Services
Association
SAIS
South Africa Institute of Security
SASA
Security Association of South Africa
SASFED
South African Security Federation
SIA
Security Industry Alliance
VESA
Vehicle Security Association of South Africa
Uniclox
Website: www.uniclox.com
Website: www.vvtech.co.za
Visual Verification Technology offers the most ultimate
and latest up-to-date camera and visual verification
systems, complemented with recordings and off-site
monitoring.
Hi-Tech Security Solutions
www.securitysa.com
Hi-Tech Security Solutions Business Directory www.secureit.co.za
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For further information, contact:
Savant: Sare Grobler, Tel: +27 (12) 394 1114
Email: [email protected]
www.savant.co.za
the dti: Tel: +27 (12) 394 0000
Websites: www.thedti.gov.za
www.savant.co.za