56
CELEBRATING
CORPORATE PROFILE
50 Years
The IP Group comes full circle: back to Zambia
Zipp adds that he followed a career in auditing at first
and after serving his articles and working for seven
years in the auditing game he joined another company
as financial manager for two years before deciding to
join his father in the business in 1984. This was a tough
decision as there wasn’t really the quantum of business
at the time to support them both – nevertheless, they
pressed on.
The initial plumbing business had grown from a one-
man business but was essentially still a one-plumber
business centred on Zipp senior, with support functions.
“Working with family in a small business was a
challenge: it soon became evident I could not rely on
just being an accountant but had to learn all about
the industry and grow the business. I was thrust into
learning plumbing jargon and was mentored by the
quantity surveyor in the company at the time. Being the
young upstart in the business, but with more energy,
I built relationships with the younger crew of main
contractors and we started to develop new leads.”
It isn’t a business that Zipp ever had ‘handed to him on
a platter’ – he emphasises he paid for every share in the
business over time. His father at the outset was already
in his late 50s and stayed on through all the years
until six years ago, when he was 84. With the years
advancing on him, Zipp senior steadily withdrew from
the mainstream plumbing business and concentrated on the
workshop side, “where he was very good on the mechanical
design side”. Derek Zipp developed relationships with various
contractors and won valuable new contracts – undertaking
the plumbing on thousands of houses in the Rustenburg area,
for instance.
“I made a point of learning how the QS’ing and plumbing
works, the various materials – just don’t ask me to actually
weld a pipe. My father’s day-to-day involvement diminished
in his 60s and his role became more advisory in nature whilst
he also kept a close watch over the workshop fabrication
activities.” Said Zipp.
As the business grew and Zipp became central to the
contracts side, there came a point where a big leap was
required in what was a highly stretched management
structure. Enzio Zambetti, a previous auditing colleague
of Zipp’s joined the company in 2004 to look after
administration and accounting. This required a growth spurt
similar to when Zipp himself joined, to warrant the overhead
of a CA on the team. This duly happened as Zipp was able to
focus on his ‘rainmaker’ duties while Zambetti handled the
administration of the business. A few years later the need to
strengthen the management team became apparent and Neil
Mole came on board in 2010 as the contracts director. The
management team has been stable since then, directing a
business which has been on a steadily accelerating growth
trajectory throughout the following decade.
“Our Zambian company is the main stalwart of the group
at the moment,” says Zipp. “That business has been on a
steady growth path for the best part of the last decade. While
growth in the group was steady and consistent before that, it
has since accelerated mainly due to our Zambian operations.
With the challenges facing the local construction industry
over the past few years, we have taken the view that we need
to consolidate our position in South Africa and rather to seek
growth in Africa, principally in Zambia. However, working in
Africa is a continually moving target as economies grow or
decline with the ever changing times.”
Staying on and expanding in Zambia was also an easy
decision for Zipp to make, as he had an affinity for the country
as his birthplace. He wouldn’t describe it as a spur of the
moment decision, he says, because it is not easy to move
into a new African country to conduct business. Companies
have to be registered and innumerable permits acquired. “Our
Zambian operation is based in Lusaka and over the years we
have developed sustainable relationships with local and South
Africa contractors and developers in that country,” says Zipp.
Zambia is experiencing growth primarily as a result of
enormous investment from Chinese investors and consequent
construction. “We were lucky as our timing was immaculate
– we didn’t foresee this happening. Other plumbing firms are
expressing interest in the country now – but the timing is no
longer as good. The government is refusing work permits so
as to encourage work for local plumbing and construction
firms, but luckily we are well entrenched,” adds Zipp.
The Zambian operation makes up more than half the staff
complement at the moment, having grown strongly while
South Africa has stagnated. The Zambian operation started
with the one project in Lusaka, which led to another and
another. Illustrating what work is like in Zambia, it is currently
finishing up a project for the Zambian military in the “middle
of nowhere” with the nearest shops to buy even rudimentary
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January 2020 Volume 25 I Number 11