JSE-listed technology services group Altron is looking to its next 60 years in business, with a focus on fintech, telematics and education, among other areas.
Beyond this, the company has committed to using technology to help rejuvenate Johannesburg, South Africa’s economic hub, says Altron CEO Werner Kapp.
Kapp was speaking at a media event yesterday to mark Altron's 60th birthday.
The event, hosted in collaboration with historian Michael Charton, provided a narrative of Johannesburg’s history, highlighting Altron’s evolution within that story, as well as paying tribute to the business leaders and organisations that helped shape its growth.
Kapp noted Altron’s technology interventions in the city, including the Gauteng Broadband Network, the firm’s fintech platform for small businesses, as well as the work its subsidiary Netstar is doing with bus service Putco.
“We built and, for a while, operated the broadband network for Gauteng,” he said, adding that Netstar operates an enterprise management solution for Putco.
“[Netstar] uses a lot of technology, ranging from camera dashboards to artificial intelligence (AI) – what we refer to as our global fleet bureau – that has reduced accidents for Putco by 70%.”
In addition, the group’s fintech business powers 10 500 small and medium enterprises (SMEs) in greater Johannesburg, to provide residents with digitally-enabled microfinancing options, he revealed.
“That creates employment; it’s a business for people…and it enables financial inclusion for those people that would otherwise be excluded from the formal financial system in South Africa,” said Kapp.
In November, the group reported that Altron FinTech grew revenue 10%, EBITDA by 54% and operating profit by 63%, driven by an increase in SME customers and the value of debit orders processed in the collections and payments business.
Altron further indicated it has invested R330 million in growth capital expenditure during the period, focused on Netstar, Altron FinTech, and systems and platforms.
Kapp – who is Altron’s fourth chief executive in 60 years – further emphasised that over the next three to five years, the company will focus on telematics, the fintech business and its role within the township economy, and leveraging the data that is at its disposal.
“We really think that telematics is something that will continue to grow significantly. We see a lot of legislation coming into the market and we see a lot of opportunities; for example, the rail infrastructure in SA, as we know, is under significant pressure. This, in turn, puts pressure on the road infrastructure, on companies and puts lives at risk. We see technology locally and globally addressing this.
“We have operations in Malaysia and Australia, and operate throughout the rest of Africa in our Netstar business. We really see that as a great opportunity to not only grow the business, but to export that technology globally.
“Because we have 50% of SA’s healthcare transactions and driver behaviour statistics of about 1.2 million drivers in SA, financial switching means we’ve got access to a lot of data and we’re looking at how we can partner with other organisations. Using that data in an anonymous way, we can determine how to help power our customers’ businesses – we see this as a significant opportunity.”
Kapp pointed out that education will play a crucial role in building a more sustainable SA going forward. “Education is where we want to put our money.
“Collin [Govender, Altron group executive COO] and his team play a big role in that and we’re looking at pre-tertiary education, particularly in maths and science.
“What we found is that when students get to tertiary education, they struggle already – they are at a little bit of a disadvantage. Here we are partnering with Matthew, which is an AI-powered platform that improves maths marks. We have about 88 kids on that platform, helping them improve their maths marks as they start to compete for university bursaries.
“We’ve also partnered with Protech, assisting about 120 learners between grades 10 and 12, getting them ready for tertiary education.”
Last year, the firm launched an ICT skills education-focused trust, as part of its broad-based black economic empowerment initiatives.
Altron said it believes the initiative provides an opportunity to be a catalyst for SA’s societal advancement and industry innovation.
Rejuvenating Jozi
As part of its next phase, Altron has responded to president Cyril Ramaphosa’s call for Johannesburg's renewal, returning the country’s economic hub to its former glory.
Last month, Ramaphosa met with city officials and noted the city is a shadow of its former self and has been turned into darkness by governance failures. The president stressed the need to make the city attractive for new investments and jobs.
Johannesburg will host the G20 Leaders’ Summit in November.
Altron has partnered with Jozi My Jozi, a people-powered movement that channels a passion for Johannesburg into meaningful change to help the city thrive again.
Through the partnership, Altron aims to make an impact by aligning key aspects of its corporate social investment strategy with Jozi My Jozi’s areas of focus, according to the CEO.
“The next 60 years are not going to be defined by our challenges, but by the choices that we make. As Altron, we look forward to playing an active role in SA and Johannesburg’s evolution.
“It is the personal responsibility of leaders to be part of the commitment of rebuilding Johannesburg. As CEOs and companies, we can’t just look after our business and economic interests. It is incumbent on us to reinvest in this city and the communities that we serve and preserve it for future generations.”
“Partnerships are the cornerstone of progress,” said Bea Swanepoel, CEO of Jozi My Jozi. “By joining forces with Altron and other committed stakeholders, we can create a Johannesburg that not only meets the immediate needs of its citizens but also lays the foundation for a prosperous and sustainable future.”
“We really look forward to having another great 60 years in Johannesburg and SA using this combination of technology, data, AI and human ingenuity to create a simpler, safer and smarter tomorrow for all citizens,” Kapp concluded.
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