Entrepreneurs in the cosmetics inductry in South Africa are receiving a welcome makeover according to Business Day:

THERE are about 500 small cosmetics producers in SA, many of whom are selling only to their local communities, according to Sasol ChemCity MD Dewet Deetlefs. But he believes there are great opportunities, especially for export, in various niches in the cosmetics industry. One example is formulating products for ethnic skin and hair, and another is exploiting SA's range of unique essential oils. Deetlefs says natural products from Africa are selling well in developed countries.

Carmen Botef of the SA Cosmetics Export Council agrees there is definitely great demand overseas for authentic formulations using local ingredients. "But we must stress the importance of having formulations accredited. The European Union requires toxicology tests and has various safety requirements to protect consumers. A lot of products are banned and they are against animal testing. The US has a different set of regulations. South African exporters have to play by the global rules."

Botef says the export council and the trade and industry department are working to identify an entity they can support, whether in SA or abroad, that will accredit South African cosmetics companies. They are making good progress.

Asked whether this entity would be Sasol ChemCity, Botef says the council is results-driven. It has referred a lot of clients there and would like to see some positive developments.

Budding entrepreneurs have to meet certain requirements to use ChemCity's services, Deetlefs says. It is important that they have an empowerment element, and they also need to fill a market need. It is not enough for someone simply to say that they want to make their own brand of washing powder. They have to show that they have a unique formulation or will address a need that is not currently being met.

To date, ChemCity's cosmetics laboratory has worked with businesses such as Cape-based Môlô Africa, which is exporting to Canada; Edengold Oil Collection, a cold-pressed sunflower oil producer; Emuphoria, which makes capsules and creams; Ikhala, which uses aloe ferox in a range of products; as well as Baobab Oil, which is a Limpopo-based producer of oils from Baobab seeds in conjunction with local communities.

Technical support specialist Nena Pruzljanin says a typical example of how the chemical laboratory would help an entrepreneur is one of their clients in Gauteng who has been making her own aqueous-cream-based products, mixed with herbal remedies she picks herself. She sells directly to a network of clients.

The laboratory has helped her to formulate a more suitable base product which she can source in relatively small quantities of 10kg a month or less as well as find more reliable herb-based additives. It has also helped her with packing the product, emphasising issues such as hygiene and storage and helping her to design suitable packaging and labelling that reflects the image she wants the product to project.

Deetlefs says ChemCity helps entrepreneurs to formulate a business plan and price their products as well as market them. If the product is patentable, it will help to apply for a patent, using the in-house legal skills available within Sasol, and if the product appears to have export potential, ChemCity will bring in the South African Cosmetics Export Council to assist.

It will also give advice on the various regulatory requirements for exports of cosmetics into different markets. "We will give assistance until the business can stand on its own feet," he says.

ChemCity does not necessarily charge for its own services, depending on the financial circumstances of its client, but if it has to outsource, for example for certain tests, entrepreneurs have to contribute to costs. Many of the cosmetics entrepreneurs who are using its services already have small business funding.

ChemCity was conceived in 1998 to meet the Sasol group's commitment to support downstream industries. It aims to support small and medium-sized enterprises with an empowerment emphasis to thrive in the chemical industry. Sasol sees it as a corporate social investment initiative so the division is not profit-making, but it does need to cover its costs.

For various reasons, ChemCity only really took off in 2004 and it launched its cosmetics laboratory in the middle of last year.

It is also taking steps to launch a plastics laboratory.

Botef says South African cosmetics exports rose 27% last year over the year before, "which was a marvellous achievement with a strong rand". Before 1994 almost all South African cosmetics exports were to Africa, in minute quantities. Exports to Africa have grown over a 1|000% since then and over 40% of SA's cosmetics exports are now to Europe.

But exporters cannot expect overnight success, she says.

It is a slow learning process, and the export promotion department of the trade and industry department has been extremely supportive.

Charlotte Mathews
Johannesburg

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