If ever a man radiated pride and joy in his job, it is Jabu Mabuza (46). And no wonder. Tsogo Sun Gaming is a resounding success, providing 75% of revenue and income - not to say cash flow of R800m/year - for unlisted Tsogo Sun Holdings, the other half of whose business is hotel group Southern Sun.
What's more, as a beaming Mabuza puts it: "It's an organisation I had the privilege of predating; there was no casino group when I came along. And I gave it its name, Tsogo, which means awakening' in Sotho."
Tsogo Sun Gaming, more than Southern Sun, is the reason a deal has been struck between Hosken Consolidated Investments and Johnnic Holdings (Companies April 8). Both have stakes in Tsogo Investment Holdings, the empowerment grouping which owns 51% of Tsogo Sun. (The other 49% belongs to SABMiller, which may eventually offload what is clearly a noncore investment.)
Tsogo Sun was launched shortly after Mabuza had been seconded to Southern Sun in late 1996 by SA Breweries. A gifted, energetic marketer who had run his own marketing firm in the late 1980s, he caught the attention of SAB chairman Meyer Kahn while both were on then state president F W de Klerk's economic advisory committee. In mid-1993, Mabuza became SAB's group advancement manager.
He and Southern Sun MD Helder Perreira report to no-nonsense Tsogo Sun CEO Ron Stringfellow. And though Mabuza is active in industry matters - as chairman of the Casino Association and the Marketing Federation of Southern Africa - he is quick to say he is "no ceremonial MD".
His number two is chief operating officer Rob Collins, formerly of Ster-Kinekor. "The nature of the business is that there are operational issues, which Rob deals with. But there are many others that cut between the strategic and the operational and I am very hands-on in these."
Perhaps because Tsogo Sun is unlisted, outside gaming and marketing Mabuza has a relatively low profile in empowerment terms. With typical self-effacing humour, he says: "Look, it's flattering to be spoken of in the same light as some of those megabillionaires, but I'm just a working executive."
From across a gleaming table in an office adorned with photos of his wife, Patricia, and children, Mpumalanga-born Mabuza says his strengths lie in relationships. "Business isn't about numbers; it's about people. And if you're not in touch with the people you work with, buy from or sell to - and the environment you operate in - you won't be successful.
"I also always remember that [Kahn] used to say business was like a wheelbarrow: if you don't push it, it doesn't move."
Tsogo Sun Gaming got its kickstart when it was awarded two of Mpumalanga's four licences, for Nelspruit (Emnotwini) and Witbank (Champions). But its subsequent licences in Gauteng (Montecasino in Fourways), KwaZulu Natal (Suncoast in Durban) and, to a lesser extent, East London (Hemingways) gave it critical mass and clout.
"Suncoast is second in revenue terms after Montecasino," says Mabuza. "The other three are roughly the same size as one another."
But the real trump card has been Montecasino, the R1,4bn, Tuscan village-style gaming, dining, shopping and entertainment complex Tsogo Sun opened in late 2000.
Initially it had trouble with its retail component - "Gamblers buy designer suits and diamond rings at casinos in Las Vegas, but they don't in SA," says Mabuza.
"But our problems have been sorted out and now there isn't a vacancy at Montecasino. Of the 20 000-25 000 people who go there daily, about 50% of them do not gamble."
Suncoast, which is bigger than Sun International's new Sibaya near Umhlanga Rocks, has retained a KwaZulu Natal market share of more than 55%, according to Mabuza. And, indeed, Montecasino and Suncoast have gone a long way to closing the gap between the bigger, listed player and Tsogo Sun.
"We are definitely in the top two," quips Mabuza.
Tsogo Sun avoided the kind of rebranding exercise that Peermont Global (fourth-largest after Gold Reef) is grappling with at its flagship Gauteng casino, having bought out international partner Caesars . "We bought out MGM three years ago," says Mabuza, "and we deliberately did not use the brand in any of our casinos."
Mabuza acknowledges that listing often crops up in discussion. "Naturally, there has been more call from the market than from our shareholders. And for the sake of our egos, we managers would like to see the market rate us as highly as we rate ourselves. But the right mechanism and timing are everything. Though we're not looking for capital, a listing would offer SABMiller an appropriate exit strategy. But shareholders still have to get to grips with the way the company is owned."
Southern Sun is expanding offshore (Business March 25). Since all of the substantial local licences have been allocated, does Tsogo Sun Gaming have similar plans?
"This will become important when we can no longer count on organic growth or opportunities arising out of industry consolidation," says Mabuza. "Though we are realistic and won't punch above our weight, in the long term, sure, we may look at Europe, the East and even the US."
Apart from being a family man - he glows when he talks about sons Lwazi (19) and Sakhiwo (15) and daughter Mbali (8) - Mabuza is a golf nut, playing off a nine handicap. He is also a passionate supporter of Orlando Pirates.
