MNE2601
Assignment 3
(ANSWERS)
Semester 2 2023
ADMIN
[COMPANY NAME]
, The Kunene brothers As the first son and the first grandchild in a Zulu family,
it was tradition that Keith Kunene be brought up by his grandparents who lived
in Boksburg, east of Johannesburg. From an early age, Keith displayed one of
the typical characteristics of a true entrepreneur – a healthy interest in money.
When he was only 12 years old, he walked with his grandfather when they
delivered the eggs his grandfather sold. He collected the money which excited
him. At the same age he would pick up dump offcuts near a mine operation
with a dump that was close to where he lived. He would then make doormats
out of the offcuts and sell them. His grandfather advised him to save all his
money in a moneybox. He remembers his childhood as a happy time one
where his grandparents and parents particularly his father, Fortune Kunene,
provided a stable and nurturing environment for him and his four brothers. His
parents, who were both teachers understood the importance of education and
Keith was sent to a tough Catholic boarding school in Vryheid in KwaZulu-
Natal. After school he found work as an administrative clerk at a hospital. After
six years in this job, he studied law at the University of Zululand, which is now
known as the University of KwaZulu-Natal. He ended up running a successful
law practice. Rather than trying to secure employment in a predictably white-
owned legal practice, he decided to add his proven entrepreneurial flair to his
profession and started his own law firm in 1976. But Keith wanted to be both a
lawyer and businessman. In 1978 Keith secured a sub-lease for Mr. Kunene
senior to operate a fresh milk outlet in Vosloorus. The business underwent
drastic changes when in 1983 the Kunene brothers won a tender to take over
a liquor outlet that was previously owned by the government in the same
township. In addition, the milk outlet started selling Coca-Cola products on a
wholesale basis. Three of the five brothers, Zanosi, Zoli and Menzi joined the
business on a full-time basis. The Coca-Cola leg of the business grew rapidly
between 1983 and 1987 culminating in the establishment of three Coca-Cola
wholesale outlets. In 1991, the business was appointed as the official
distributor of Coca-Cola brands by the Nigel Bottling Industries. Prior to Coca-
Cola’s return to South Africa in 1994, the Kunene brothers were the largest
independent distributors of Coca-Cola in this country. The acquisition of Coca-
Cola Bottling Mpumalanga (CCBM) enabled the brothers to formalise their
business interests through Kunene Bros. Holdings (Proprietary) Limited (KBH)
was incorporated on 21 July 1994 as an “active ownership” business with
diversified interests. On 28 August 1994, Kunene Finance Company (KFC)
was established for the purpose of raising medium-to-long term finance to
Assignment 3
(ANSWERS)
Semester 2 2023
ADMIN
[COMPANY NAME]
, The Kunene brothers As the first son and the first grandchild in a Zulu family,
it was tradition that Keith Kunene be brought up by his grandparents who lived
in Boksburg, east of Johannesburg. From an early age, Keith displayed one of
the typical characteristics of a true entrepreneur – a healthy interest in money.
When he was only 12 years old, he walked with his grandfather when they
delivered the eggs his grandfather sold. He collected the money which excited
him. At the same age he would pick up dump offcuts near a mine operation
with a dump that was close to where he lived. He would then make doormats
out of the offcuts and sell them. His grandfather advised him to save all his
money in a moneybox. He remembers his childhood as a happy time one
where his grandparents and parents particularly his father, Fortune Kunene,
provided a stable and nurturing environment for him and his four brothers. His
parents, who were both teachers understood the importance of education and
Keith was sent to a tough Catholic boarding school in Vryheid in KwaZulu-
Natal. After school he found work as an administrative clerk at a hospital. After
six years in this job, he studied law at the University of Zululand, which is now
known as the University of KwaZulu-Natal. He ended up running a successful
law practice. Rather than trying to secure employment in a predictably white-
owned legal practice, he decided to add his proven entrepreneurial flair to his
profession and started his own law firm in 1976. But Keith wanted to be both a
lawyer and businessman. In 1978 Keith secured a sub-lease for Mr. Kunene
senior to operate a fresh milk outlet in Vosloorus. The business underwent
drastic changes when in 1983 the Kunene brothers won a tender to take over
a liquor outlet that was previously owned by the government in the same
township. In addition, the milk outlet started selling Coca-Cola products on a
wholesale basis. Three of the five brothers, Zanosi, Zoli and Menzi joined the
business on a full-time basis. The Coca-Cola leg of the business grew rapidly
between 1983 and 1987 culminating in the establishment of three Coca-Cola
wholesale outlets. In 1991, the business was appointed as the official
distributor of Coca-Cola brands by the Nigel Bottling Industries. Prior to Coca-
Cola’s return to South Africa in 1994, the Kunene brothers were the largest
independent distributors of Coca-Cola in this country. The acquisition of Coca-
Cola Bottling Mpumalanga (CCBM) enabled the brothers to formalise their
business interests through Kunene Bros. Holdings (Proprietary) Limited (KBH)
was incorporated on 21 July 1994 as an “active ownership” business with
diversified interests. On 28 August 1994, Kunene Finance Company (KFC)
was established for the purpose of raising medium-to-long term finance to
