Smooth business handovers: A survival guide for South Africa's entrepreneurs
Amogelang Montane, human resources business partner at Business Partners Limited
Amogelang Montane, human resources business partner at Business Partners Limited, believes that effective leadership is at the heart of any successful business transition. 'Any big change, when not managed properly, can result in operational inefficiencies, employee uncertainty, and even a knock to revenue. However, many of these results are often avoidable, and with a well-planned handover strategy, it's possible for your business to make it through these times of uncertainty.'
While any change in leadership can be challenging to manage, Montane notes that mergers and acquisitions require particularly careful consideration – especially when a smaller business is being acquired by a larger company or corporation. 'When a business merges with another or is acquired by a larger group, the shift in company culture, operational processes, and management structures can cause significant disruption to the 'norm' employees have become used to. Small and medium enterprises (SMEs), in particular, may struggle to integrate into a larger corporate framework without a clear roadmap.'
Montane lists four key considerations for entrepreneurs to ensure business continuity during these types of transitionary periods.
- Clear communication
Transparent communication with employees, customers, and other key stakeholders is vital. 'Ensuring that all parties are kept up to date about changes and their implications will help manage expectations and reduce uncertainty across the organisation,' says Montane.
- Strategic planning
A comprehensive transition strategy should be in place before any major leadership or structural change. This includes clear succession planning, especially for family-owned businesses and founder-led SMEs, notes Montane. 'These smaller, tight-knit businesses often face challenges when ownership or leadership is transferred. Without a structured succession plan, conflicts may arise, threatening the business's continuity,' he explains.
- Talent retention
It's estimated that 47% of key employees leave within the first year following a merger or acquisition, and 75% leave within the first three years. 'This is why keeping employees motivated and aligned with the company's vision during a transition is one of the greatest human resources responsibilities in a merger. The loss of talent after an acquisition can be so significant that it erodes value from the transaction,' says Montane.
He adds that conducting due diligence around culture and operational processes is also critical when merging two organisations. 'While HR is responsible for supporting employees on a day-to-day basis, it is up to the leadership team to provide reassurance, guidance, and opportunities for professional growth to retain key talent.'
- Financial stability
Ensuring access to capital during periods of transition can help businesses to persevere through potential financial instability. 'As a financier to SMEs, we have seen first-hand how well-planned transitions supported by the right funding can ensure business continuity,' adds Montane.
While leadership transitions can be daunting, they also present an opportunity for businesses to evolve and strengthen their competitive position. By implementing a structured approach, SMEs can mitigate risks and emerge stronger on the other side of change.
'As South Africa's SME sector continues to grow and evolve, businesses must embrace change as a constant. With the right leadership and strategic planning in place, transitions can be transformed into catalysts for success,' concludes Montane.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
4 hours ago
- Zawya
Available and affordable municipal electricity: Shifting generation to point of consumption through smart Nano-Grid Deployments
By Christo Nicholls, CEO of Utility Consulting Solutions (UtCS) The Netherlands – a global leader in energy transition, recently announced electricity rationing as its national grid buckles under the pressure of increased demand, electrification, and renewable integration. It's a stark reminder that even highly developed economies can stumble when electricity systems remain overly centralized. For municipalities, especially those mandated to deliver electricity, this is a warning bell: Without change, they risk being stuck in the middle, expected to deliver power they can't control, afford, or plan for. In South Africa, many municipalities already face this risk daily. Aging infrastructure, rising Eskom tariffs, and load-shedding have created a storm of operational and financial uncertainty. But within this crisis lies an opportunity: to flip the script through smart, decentralized electricity solutions. Herewith, the Smart Municipal Nano-Grid and Micro-Grid-level BESS (Battery Energy Storage Systems) model. Redefining the Role of the Grid Traditionally, electricity flowed one way – from Eskom to municipalities to consumers. But with rooftop solar, smart meters, and energy storage, communities can now generate and store power right where it's needed. The grid doesn't disappear; instead, it becomes a reference point, supplying energy during peak times and recharging BESS during off-peak periods. This shift gives municipalities breathing room. They can buy less electricity at peak tariffs, reduce stress on transformers, and stabilize their own networks. Most importantly, they regain a measure of control in a system that has long marginalized their role. The Financial and Operational Win This isn't just a technical upgrade – it's a fiscal one. By installing Nano-Grids and localized BESS: Municipalities cut procurement costs. Grid congestion eases as households become partial suppliers. Communities benefit from improved reliability and reduced load-shedding impact. New revenue streams open up through premium availability or resilience tariffs. Ability to settle bulk supply accounts increase significantly. Smart Metering: The Gatekeeper of Fairness But this new energy landscape can't function without smart, fit-for-purpose Advanced Metering Infrastructure (AMI). We need meters that go beyond measuring usage. They must track when and how electricity is consumed, stored, or exported. This ensures: Households aren't unfairly charged for BESS discharge. Export isn't overloading a single phase or transformer. Time-of-Use tariffs match system needs. Why Now? Why Locally? Waiting for national grid reform is no longer an option. Municipalities must act—locally, smartly, and fast. With Smart Nano-Grids and BESS, supported by AMI, we can build resilient municipal electricity systems where generation meets consumption at the source. It's the only way to ensure availability and affordability, now and into the future. At Utility Consulting Solutions (UtCS), we're helping municipalities deploy scalable, smart energy solutions that put them back in the driver's seat of their constitutional duty of providing sustainable electricity distribution services.
Zawya
6 hours ago
- Zawya
Africa's flavours to drive its hospitality boom
Africa's food and beverage sector will play a key role in driving growth in the continents luxury hospitality sector. Valued at US $346.2 billion in 2024, the Africa food and beverage market is projected to reach US $567.3 billion by 2032, according to research from Verified Market Research. Across Africa, luxury hotel groups, such as One&Only Resorts, Azalai Hotels Group, and Marriott Luxury Collection and Autograph Hotels, are positioning food as a defining part of the guest experience through partnerships with celebrated chefs and the use of indigenous ingredients. 'In markets like South Africa, Kenya, Mauritius, the Seychelles, and West Africa, African-centric fine dining is on the rise, shaped by the unique culture of the continent, sustainability, and seasonality. These are not passing trends; they are part of a deeper movement redefining African cuisine as a global force,' says Conrad Gallagher, CEO of Food Concepts 360, one of the world's leading boutique restaurant design consultancies. Africa's culinary sector has enjoyed increased popularity, culminating in Cape Town being voted the best food city in the world in the 2024 Condé Nast Traveller Readers' Choice Awards. And international hotel groups have started taking notice. The Radisson Hotel Group recently committed to expanding its portfolio from 13 to 25 hotels in South Africa by 2030, effectively doubling its current footprint. And Marriott International's acquisition of Protea Hotels, which includes over 100 properties across seven African countries, reflects a long-term commitment to regional dominance. Says Gallagher: 'What these two groups illustrate is that combining global expertise with African hospitality could be the key to unlocking the full potential of food and beverage as a competitive differentiator.' However, with opportunities come challenges. While Marriott and Protea's expansion signals continued investment confidence, it may be even more important that local partnerships deliver local impact. Food Concepts 360 is actively engaging with stakeholders at both local and international hotel groups to ensure that there is no potential disconnect which could weaken cultural relevance and limit the ability to respond to local market dynamics. 'We're bringing world-class skillsets home to start work on flagship developments in key markets like Nigeria, Angola, Mozambique, and Egypt – countries where we see a convergence of economic potential, urbanisation, and culinary curiosity.' The chef-led, experience-driven business is focused on building ecosystems, not just individual projects and has a long-term approach that prioritises public-private partnerships, the nurturing of African talent, and the development of the next generation of hospitality leaders. Sustainability, African design thinking, and measurable local impact are embedded into all their projects. 'The world is looking to Africa for inspiration,' Gallagher says. 'Now is the time for South African hospitality professionals to lead with confidence, creativity, and cultural pride. As African talent returns home and investment momentum builds, the continent stands ready and primed for growth.' Conrad Gallagher is the CEO of Food Concepts 360, one of the world's leading boutique restaurant design consultancies. Since 2016, Food Concepts 360 has worked on high-profile hospitality projects across Africa, the Middle East and Europe. His team has helped conceptualise and deliver more than 60 restaurants internationally, including flagship destinations on Saadiyat Island in Abu Dhabi. This experience has equipped his South Africa-based team with deep operational insights and a global perspective on how to deliver world-class results for Africa's fast-growing hospitality market. Their work helps partners to unlock the full potential of food and beverage as a competitive differentiator.
Zawya
6 hours ago
- Zawya
The future of fuel retail in South Africa: NEVs and solar panels
Even though new energy vehicles (NEVs) only make up less than 3% of South Africa's car market, local fuel station operators can still capitalise on the world's drive to embrace cleaner sources of fuel and energy. Rapid international developments, regulatory pressure, and consumer demand for greener mobility are set to reshape the fuel retail landscape. Image credit: Kindel Media on Pexels Rapid international developments, regulatory pressure, and consumer demand for greener mobility are reshaping the fuel retail landscape. The global state of NEVs The global NEV space is evolving rapidly: The European Union is working to phase out combustion engines by 2035 and is shifting focus to autonomous NEVs. China remains dominant, controlling most of the global NEV supply chain and having built battery capacity exceeding global demand by 500%. But according to the Automotive Business Council (Naamsa), South Africa is lagging for several reasons: Without access to Euro-5 and Euro-6 compliant fuels, South Africa cannot authorise or legally sell many modern vehicles. Currently, 38% of petrol and 67% of diesel are imported, but the Department of Mineral Resources and Energy has committed to making Cleaner Fuel 2 available by 1 July 2027, with indications it may arrive slightly earlier. The South African NEV market is small but growing, dominated by traditional hybrids like the Toyota Corolla Cross and Mercedes-Benz C-Class. Full battery electric vehicle (BEV) sales remain limited due to affordability, which is the biggest barrier to growth in this market: most BEVs are priced over R900,000, yet 74% of new car sales in South Africa are under R500,000. How fuel stations can benefit More affordable options are coming, with one original equipment manufacturer scheduled to launch a sub-R400,000 battery electric vehicle (BEV) this year. However, even affordable BEVs face practical challenges. Many consumers – particularly in the lower end of the market – lack solar, inverters, or batteries to charge vehicles at home. In addition, range anxiety persists, even though most BEVs offer over 200km per charge, and concerns about resale value and long-term performance deter buyers. Another issue for South African NEV sales is that existing public charging infrastructure is limited, poorly maintained, and inconveniently located: A Joburg to Cape Town EV convoy last year exposed major gaps, with vehicles stranded due to faulty charging stations. To address these challenges, Naamsa is engaging with the private sector to build a national charging network of 120 sites, providing accessible, reliable charging along key routes throughout the country. The network will leverage existing fuel stations instead of building new sites, ensuring that drivers can find a charging site within easy travelling distance, which will be public and free to access, without hidden costs. These strategic partnerships with fuel stations are preferable because of their proximity to main national routes and their existing vehicle-refuelling and alternate revenue stream infrastructures. To reduce the cost of the NEV charging infrastructure build and increase the speed of installation, these sites will initially operate largely through the national electricity grid, supported by renewable energy. Fuel stations are, in fact, ideally suited for solar PV installations because they have sizable areas of roof space over their buildings and forecourts, which are generally located in full sun. So, as increased income streams generated by the new infrastructure boost profits, fuel station owners can increase the renewable energy component of their sites to decrease their reliance on the national grid and thus boost profitability further. Fuel stations to evolve EV charging facilities certainly offer great potential for fuel retailers. It's a natural progression for them as it uses their experience and already-expanding forecourt product offerings while providing the highest potential margin. A recent study on the future of fuel stations in South Africa by commercial real estate company Cushman & Wakefield | Broll, indicates that fuel stations will evolve into 'mobility' stations within the next 5 to 15 years, offering a wider range of energy sources (electricity, natural gas, petrol, diesel, biofuels, and green hydrogen). As Fuel Connect points out, fuel forecourts offering much more than fuel is nothing new – as far back as the 1960s, fuel stations have incorporated restaurants, convenience stores, car workshops, tyre fitment centres, and even hotels, and fuel stations have always been an important midway destination on long journeys for family holidays. But because recharging an NEV takes significantly more time than filling up the fuel tank of a vehicle with an internal combustion engine, extended services such as pharmacies, laundry services, gyms, and co-working spaces will become more common at these sites. Operators will then become less reliant on income from fuel, as it will account for just 20% of the forecourt's revenue, compared with the 90% it has contributed historically. A further consideration is that, going forward, successful retailers won't just operate a single site, but instead own between five and 10. But managing multiple sites brings complexity – more employees, more systems, more human error. The only real solution? Leveraging smart technology, which prevents fraud, boosts efficiency, and further increases profitability. The future of fuel retailing lies beyond the fuel pump. As NEV adoption grows and cleaner fuels become standard, traditional forecourts will evolve. Embracing the opportunities this transition promises, together with smart technology and renewable energy, fuel station operators can future-proof their businesses and thrive in the rapidly changing mobility environment. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
