The say, never put all your eggs in one basket. Tim Tebeila never does. This mining magnate is well on his way as a multimillionaire thanks to the many baskets of Sekoko Holdings.
The new egg is Mint Electronics, which is set to launch South Africa’s first smartphone and tablet, called Mint.
<img loading="lazy" decoding="async" class="alignleft size-medium wp-image-2908" src="/wp-content/uploads/2017/04/mint-300x225.jpg" alt="" width="300" height="225" />
It’s a new and bold venture for one of the determined veterans of the post-1994 South African economy. His dream is simply to build a new Anglo American and it hasn’t been easy.
Tebeila started off with Sekoko Resources, mining coal, iron ore and platinum. He then started Tebcon Developers, which is now managed by his wife, building hospitals, schools and houses in townships across the country.
Tebeila is born of struggle, the third of seven children to a laborer in the remote village of Sekhukhune, in the Limpopo province. He walked barefoot through the mountains to school, 15 kilometers each way. He sold apples on the streets for a living.
Post 1994, he was an insurance broker before becoming an entrepreneur. In 2013, he founded one of South Africa’s first fully licensed black-owned insurance companies, Reliance Life.
Then came electronics. Earlier this year, Tebeila announced the launch of Mint Electronics. It is a subsidiary of Sekoko Holdings which acquired a 75% stake of CZ Electronics, a factory in Boksburg, 52 kilometers east of Johannesburg.
CZ Electronics, established in 2002, used to make equipment in South Africa for France’s Alcatel Lucent on behalf of Telkom and other clients. The company builds circuit boards for television brands like Sinotec.
Tebeila says Android 5-inch smartphones and 10.1-inch tablets will be designed, developed and manufactured in South Africa for the mass market. He claims this will be the first tablet with a USB port.
“The smartphones and tablets will be sold through major retailers, operator stores and our branded shops. The branded shops will launch in all major malls,” says Segran Pillay, chief executive of CZ Electronics.
<img loading="lazy" decoding="async" class="alignleft size-medium wp-image-2907" src="/wp-content/uploads/2017/04/Tablet-Mint-7-SLIM-II-300x225.jpg" alt="" width="300" height="225" />
Tebeila adds that the tablets will be available in both the seven-inch and the 10-inch screen sizes.
“My target with this tablet is that every school learner in South Africa should have one,” he says.
Tebeila hopes the devices will be on shelves in about 11 Mint Electronics branded stores and in other existing mobile shops.
With manufacturing already underway in Boksburg, Tebeila plans to franchise Mint Electronics by the end of 2015. The businessman hopes to roll out manufacturing plants and sell across the continent.
But this man is known for wanting to turn Sekoko Resources into Anglo American. It was difficult.
Tebeila didn’t want to buy other companies, but he wanted to get the mining rights and develop this company on his own. He was turned down 10 times, but never gave up.
It was a dream almost stillborn. Mining rights proved a nightmare.
When he eventually got them, he needed R1.5 million ($145,000) for exploration and struck on the idea of gathering money from people who lived in the villages near where he grew up.
An old blind woman was one of the first to shuffle into Tebeila’s offices on a winter’s day, handing over R15,000 ($1,450) in cash – her life savings.
When all the money was put together, he paid R600,000 ($58,000) to a firm of geological consultants and R900,000 ($87,000) to drillers to explore for coal at Soutpansberg.
A few weeks later, he found out that the consulting firm, which had been riven by strife, had dissolved almost overnight and the geologist had fled to Australia with the exploration report.
He had lost money, paperwork and information which had consumed his meagre capital. But because he was hands-on during the exploration, he knew the laboratory that was used by the consultants and the people who worked there. The lab was able to salvage two pages of the exploration data for Tebeila. It contained all the drilling information. And other experts were able to finish the rest.
Coal mining was to be the foundation for his $28-million fortune.
In April 2005, the government granted Tebeila a license for Soutpansberg, which was estimated to hold 200 million tons of metallurgical coal under 11 farms, covering 8,000 hectares, near Musina on his home soil of Limpopo.
“Coal of Africa made me an offer to purchase 74% of the assets for R70 million ($6.7 million). They also pledged to spend R100 million ($9.6 million) to take the project to a bankable feasibility study,” says Tebeila.
This was the biggest deal he ever had closed on a cellphone while driving. Two years later, they offered him R20 million ($1.9 million) for the remaining 26% and gave him the capital to finance the Waterberg Colliery. It will mine up to 15 million tons of coal a year by 2019.
Sekoko Resources will supply Eskom with about 10 million tons of coal from Waterburg.
Eskom is building Kusile and Medupi power stations in the Limpopo and Mpumalanga provinces, while producing around 35,000MW of electricity, twice that of Nigeria, to ease the power shortages in South Africa.
“By September, we will be done with signing the agreement that will allow us to start with operations early next year. Our feasibility study has also allowed us to create an environment for our export market. Part of the coal will be going to export and part of it will go to Eskom,” he says.
Tebeila says plans are still on track for Sekoko Resources to reach a turnover of R10 billion ($1 billion) a year by 2019.
This turned his life around to what Sekoko Resources is today.
But like many other multimillionaire entrepreneurs, philanthropy is close to his heart. Tebeila gives away portions of his fortune through a foundation in his name. His latest charity project, coinciding with the winter season in South Africa, is giving tracksuits to school children.
“If you don’t give, you won’t make more money. Africans must give more,” Tebeila says.
While driving in the back of a car to see the newly acquired CZ Electronics and Mint Electronics factory in Boksburg, Tebeila turns to me sharing another dream of building a bakery.
“I like bread,” he says.
And therein lies the whim of an entrepreneur. The man who is always on the move, who sees opportunities when others do not, or in Tebeila’s case, pick up another egg and put it in another basket.

The Multi-Millionaire  In The Mirror

How do you come back from this? You’ve lost the life savings of scores of poor people who trusted you; the company that was the key to your fortune has abandoned you; your dream of building a mining empire is in tatters and you are broke. What do you do? Go back to the office and go to sleep? Surely not. Tim Tebeila was used to hardship. He was born, the third of seven children, to a laborer in the remote village of Sekhukhune, in Limpopo, in the north of South Africa. From an early age, he walked barefoot through the mountains to school—15 kilometers each way.
“It was very tough. In winter you had to wake up at four o’clock andevery day you were still late. I was lashed for being late every day for two years,” says Tebeila. As he grew up, Tebeila hustled a living selling apples on the streets. “I think entrepreneurs are born, they are not made. It is a talent, like being a soccer player, but you have to nurture that talent.” To make his life even more complicated, Tebeila was drawn into politics and became one of the leaders in the South African Youth Congress. At nights, often he would sleep in the mountains near his home to avoid arrest.
At the dawn of democracy in South Africa, in 1994, Tebeila decided to quit his job to chase his dream of becoming a mining magnate and set up a company, Sekoko Resources. In those days there were very few black entrepreneurs in mining. “My dream was always to own a mine. My dream was to build a conglomerate similar to that of Anglo American. My belief was very simple; when the Oppenheimer family startedAnglo American they started the same way I did. Not by buying other companies, but getting their ownrights and developing them.”
Getting these mining rights proved a nightmare a million miles from the dream. Tebeila was turned down 10 times, and every time he rolled onto the couch in his Polokwane o­ffice and wept. In 2002, he used his last R100,000 ($13,500) to pay consultants in pursuit of yet another mining right. He found out too late that the money was non-refundable and ended up losing both the rights and the cash.
In 2004, he identified the asset he felt could make his fortune and prayed for better luck. Soutpansberg was an estimated 200 million tons of metallurgical coal, under 11 farms, covering 8,000 hectares, near Mussina on his home soil of Limpopo. On April 19, 2005, the government granted Tebeila a license for the site and he was set to chance his arm with consultants yet again. The bigger problem was that Tebeila did not have any money left to explore and the banks were refusing to lend. He needed R1.5 million ($195,000) for exploration and struck on the idea—as was fashionable in latter years of black economic empowerment—of gathering the money from the people who lived in the villages near where he grew up.
So on a crisp winter’s morning near Bela Bela, in the heart of the country’s northern Waterberg coalfields, hundreds of curious villagers gathered to hear what their brother planned to do in return for their life savings. “I remember it was a very cold day and I had a stomach problem… There were many people there that day, old people, disabled people and even chiefs from the community. I told them I needed their money and could make them all rich,” says Tebeila.
The next day, a blind woman shuffled into Tebeila’s offi­ce and handed over R15,000 ($1,950) in cash—her life savings. “This touched me a lot and it showed belief in the project. The chiefs followed and they represented the community. My feeling was at least we have got people who are backing my dreams and people who believe in my dreams. After all the long stress of turned down applications, this was going to be it.” Full of hope, Tebeila paid R600,000 ($78,000) to a firm of geological consultants and R900,000 ($117,250) to drillers to explore for coal at Soutpansberg. Little did Tebeila know that his worst day—like the coal itself—was lurking just beneath the surface.
The alarm bells started ringing when Tebeila spent weeks chasing up the paperwork from the consultants. To his horror, he found out that the consulting firm—which had been riven by strife—had dissolved almost overnight. To make matters worse, the geologist had fled to Australia with the exploration report under his arm. It meant Tebeila was mired in a project without information, money or hope; where he was landed with being the geologist, lawyer, environmentalist and engineer of a “I couldn’t phone a blind person, who had given her last money, to tell her that I had lost everything.”
“I felt I was down and I would notwake up. I felt really bad. This was my second loss. I got that money out of struggle and it had gone. I was very down, but I never thought of quitting. Every time I had hardship, I always went and slept in my office. I went back and slept on my couch. I slept for four hours. I do this because it is both meditation and praying for an answer. I woke up with the solution.”
The answer lay in a laboratory in nearby Witbank. Because Tebeila was hands-on during the exploration he knew the laboratory used by the consultants and the people who worked there. He sped to Witbank, more in hope than expectation.
In Witbank, lady luck at last cracked a smile on the Soutpansberg coal project. The laboratory was able to salvage two pages of exploration data for Tebeila. Luckily, the two pages contained the all-important drilling data. A lifeline for the coal mine; for Tebeila these flimsy pages were manna from heaven.
The struggle was far from over. Tebeila spent five months trying to sell the idea of a coal mine with his two pages in hand. There was a glimmer of hope when the Brazilian resources giant, Vale—the driving force behind Mozambique’s mighty Moatize coal project—showed interest, but there was a language barrier. Vale needed to send the proposals to Brazil for translation into Portuguese, but this was going to take months and Tebeila neither had the time nor the money.
<h3>What did he learn?</h3>
“I think I have learned the art of perseverance and how it works. I learned to persevere no matter what. I learned to stick to my dreams. I want to build a new Anglo American and I am doing that.”
At last, the sun broke through the clouds for Soutpansberg. Tebeila got a phone call, while he was driving, from Coal of Africa— an established player in the South African industry.
“Coal of Africa made me an off­er to purchase 74% of the assets for R70 million ($9.1 million). They also pledged to spending R100 million ($13 million) to take the project to a bankable feasibility study. “It’s the biggest deal I have ever closed on a cellphone while I was driving. The following day, they signed. Two years later, they o­ffered me R20 million ($2.6 million) for the remaining 26% and gave me the capital to finance my present project, Waterburg Colliery, which will mine up to 15 million tons of coal-a-year by 2019.” Sekoko Resources survived it all, diversified into iron ore, and is set to reach turnover of R10 billion a year ($1.3 billion) by 2019. And what of the people who handed over their last bundles of cash way back in 2005? “They got their dividends. They got all their money back and they made 300% back on what they gave. Some built houses out of that money. I felt very proud,” says Tebeila. So, coal’s well that ends well.

Tag: Tim Tebeila

FORBES AFRICA SOCIAL MEDIA

The Multi-Millionaire In The Mirror

Two Flimsy Pages – The Difference Between Disaster And Fortune