African Business Review - April 2016

April 2016 | www.africanbusinessreview.co.za

Energy and Hotels Investment

GUINNESS CAMEROON Africa’s tech revolution Ecobank Nigeria: Networking finance

EDITOR’S COMMENT

Looking at the long term H E L L O A N D W E L C O M E T O the April issue of

African Business Review. While the continent has undoubtedly been hit by the fall in global commodity prices, there is much reason to remain positive.

Not least are the countless infrastructure projects currently underway (or in the pipeline) which represent a massive collective effort from workers, governments and institutions to try and narrow down the continent’s infrastructure gap. Bearing this in mind, we bring you an article on how the experience gained from the growth of this sector in the Middle East can be applied to African initiatives. We also proudly introduce our partnership with the Africa Energy Investment Summit, which will be taking place in Washington DC from the 10th to the 12th of April.

Last but not least, Teodoro de Jesus Xavier Poulson, Member of the Investment Committee at the Fundo Activo de Capital de Risco Angolano (FACRA) explains why it is crucial that Africa’s technology revolution does not leave those in poverty behind.

The April issue also showcases a number of successful businesses operating on the continent, including Ecobank Nigeria, Alphamin Resources and our exclusive cover story on Diageo Guinness Cameroon.

We hope you enjoy the read; feel free to share your thoughts on Twitter @AfricaBizReview

Enjoy the issue!

Nye Longman Editor nye.longman@bizclikmedia.com

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CONTENTS

6

Features

TECHNOLOGY

Africa’s technology revolution must not leave its poor behind

18

CASE STUDY

How can the Middle East experience be applied to African power projects?

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April 2016

EVENTS

14 Africa Hotel Investment Forum (AHIF) Togo

Africa Energy Investment Summit 2016

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Company Profiles

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Diageo Guinness Cameroon

50 Ecobank Nigeria

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Alphamin Resources 5

TECHNOLOGY

Africa’s technology revolution

must not leave its poor behind Written by

Teodoro de Jesus Xavier Poulson Member of the Investment Committee at the Fundo Activo de Capital de Risco Angolano ( FACRA )

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TECHNOLOGY

Africa’s meteoric rise is hindered by income inequality and social challenges. We now have an opportunity to support the technology innovators who can make a lasting difference BILL GATES FAMOUSLY once said: “Never before in history has innovation offered promise of so much, to so many, in so short a time.” Less quoted perhaps is what he said during his 2014 speech at Stanford University’s 123rd Commencement in June 2014. He spoke about having seen poverty during a trip to Soweto, poverty he had never imagined, people living in tin shacks with no electricity, no water, no toilets. He spoke of the enormous challenge presented by multi-drug-resistant tuberculosis, a disease with a cure rate of under 50 per cent and commented ironically that his own Foundation was “not focused on the fact that half a million people on this continent are dying every year from malaria. But we’re sure as hell going to bring you computers.”

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April 2016

The point is that economists and investors so often think about technology from a socio-economic perspective, citing e-commerce, mobile phone apps and widening access to online credit as enablers of social mobility. In modern Africa though, technology has an additional and equally important role. While sub-Saharan Africa’s middle class expands, government, NGO’s and the private sector need to remind themselves that there remains a segment of society that is at risk of being left behind.

Without providing relief and opportunity for all Africans, we run the risk of repeating the mistakes of the west by creating a gulf between the richest and poorest.

Africa is the last great frontier, with the world’s youngest population and historic levels of investment in

TECHNOLOGY

‘Africa is the last great frontier, with the world’s youngest population and historic levels of investment in infrastructure’ infrastructure. Governments and international bodies have ploughed hundreds of billions of dollars in to the development of new roads, airports, economic free zones and other forms of business-critical infrastructure. But all of this is at risk if the needs of the impoverished are not taken care of. This is why we must all be reminded of how terribly important it is to support African innovators and entrepreneurs who are developing technological solutions that can help us to alleviate poverty and solve the persistent health challenges that are still rife in different parts of the region.

One of the most common challenges in the healthcare sector in Africa is geography – reaching remote communities and providing

fast and reliable healthcare services to individuals unable to reach a hospital or clinic. There are numerous examples of technological innovations that are addressing these issues. In Cameroon, a young entrepreneur invented the CardioPad; a computer tablet that enables heart examinations such as ECG’s to be conducted in remote, rural locations that have never previously had access to crucial diagnostic tests. Its electrodes communicate via Bluetooth to a tablet, which then sends a signal to cardiology departments in the nearest city, using satellite technology. The technology is 11

TECHNOLOGY currently only available in Cameroon but with funding and support from a private medical centre it is now set to be marketed in other countries.

Another of the many diagnostic solutions include MedAfrica, which is a simple virtual library of medical information that is available on a smartphone, listing symptoms and possible diagnoses. Likewise, Medisoft East Africa has developed a technology that enables x-rays and other images to uploaded and sent to radiologists across vast distances.

This product, called Teleradiology, gives medical imaging centres and hospitals all over the continent the freedom to outsource interpretation services to offsite radiologists around the clock.

Innovations such as these can only be developed and taken to market if they are supported by multiple stakeholders. Government has an obvious motivation, as do bodies such as UNICEF and the WHO. However, private investors and foreign companies must also play a part in upscaling these innovations.

In Angola, we have established a unique VC model that provides foreign investors with a conduit to local innovators. At FACRA, we 12

April 2016

are actively encouraging Angolan technology entrepreneurs to reach out to us so that we can help them gain access to capital in a market that continues to underserve those without a credit history. We believe that healthcare and social challenges such as lack of access to off-the-grid electricity and clean water represents foreign investors with eanormous opportunities. Healthcare, sanitation and energy provide a lifeline for the poorest in our communities; they provide opportunities for African innovators to become successful entrepreneurs and for multinationals to contribute towards improving the quality of life for all Africans along with generating substantial returns on their investments. FACRA provides local innovators with a platform to showcase their innovations. It gives foreign investors an opportunity to explore promising business ideas; as well as a fast-track to entering the domestic and regional market place.

Each of us has a vested interest in supporting our young innovators and entrepreneurs, and it is time to invest in the technologies that will help build a brighter future. for them and for Africa.

Africa Energy Investment Summit 2016 Written by: Nye Longman

EVENTS

EVENTS The Event The Africa Energy Investment Summit will become a flagship event for African Energy sector players in coming years, policy makers in governments, businesses, finance houses and the professionals in the sector. The continued promotion of investment and development of SubSaharan Africa’s energy is critical to the region’s economic growth and prosperity.

The inaugural Africa Energy

16 April 2016

Investment Summit 2016 will be held at the Georgetown University Hotel and Conference Centre in Washington DC, USA. The event will be held on 10th – 12th April, 2016 with PreConference Reception and Poster Sessions on the 10th of April. The event has partnered with well-known energy focused media houses, global legal and advisory services firms, associations, and institutional lenders who will be speaking at the summit.

The Goals The summit presents an opportunity to engage with a wide variety of professionals in the field whilst attending presentations, participating in debates and generally taking stock of where the region’s energy

AFRICA ENERGY INVESTMENT SUMMIT 2016

sector is, and where we want it to be in the coming decade, energy sector investments, development of power generation, transmission and distribution, as well as the whole value chain. All of this happens in a context that is dynamic and fun were ‘meetand-greet’ is key, networking and creating lasting business relationships for the improvement of the region.

Energy Sector Developments The summit will look at regional regulatory frameworks, the investment climate for the energy sector, finance and investment opportunities, regional cooperation. It will spark a new dialogue on new initiatives that are already proving to be game changers in energy, clean technology and renewables plus new policies and regulations, while exploring emerging themes in the energy sector.

Latest news on Sub Saharan Africa Sub-Saharan Africa has a huge power deficit which has made a huge impact on the development and productivity on all industries on the continent.

With deficit comes the opportunity for investment and vigorous promotion

of the continent where renewables and clean technology is concerned.

Hence, various governments on the continent are working with the private and institutional lenders to develop the energy sector.

On a global scale, a lot is being done to promote more investment into Africa’s energy sector with initiatives like President Obama’s Power Africa and Prime Minister Cameron’s Energy Africa. The African Development Bank has pledged to mobilise $54 billion for Africa energy sector, while the IFC, the World Bank’s private sector arm is working with countries in the region on renewable energy projects and deployment some of which are scaling solar in Zambia and Senegal.

For more information on the event, the agenda and registration, please visit the summit website here: www.nkmevents.com/aeis We look forward to welcoming you at Georgetown University Hotel & Conference Centre this April.

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CASE STUDY

How can the applied to A

James Simpson, Partner; Katharine Sonneborn, of Counsel; a Winston & Strawn examine how Africa can benefit from experience

Edited by: Ny

e Middle East experience be African power projects?

and Giulia De Michelis, Associate, from the international law firm e gathered in the Middle East on Infrastructure and power projects

ye Lo ng m a n 19

CASE STUDY Africa: The Infrastructure Gap Over the last decade, Africa has, for the most part, demonstrated resilient economic performance.

But sustainable and affordable energy development has not kept pace with economic growth.

With the rising demand for power, Africa could witness a continuing Infrastructure gap which represents a genuine risk to its growth.

According to the World Bank, 25 of the 54 African countries are in an energy crisis. In Sub-Saharan Africa, only seven countries have access rates greater than 50 percent, meaning more than 600 million people (approximately two-thirds of the continent’s population) lack access to

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electricity. African governments have responded with conventional and renewable energy investment growth initiatives. These include an opening of markets to private investors the adoption of regulations to enhance transparency and legal certainty, and feed-in tariff schemes to promote the deployment of renewables.

While many government initiatives have been met with great success, such as South Africa’s Renewable Energy Independent Power Producer Procurement Programme, others have not been as well received. The experience and lessons of successful Independent Water and Power Projects (IWPPs) and Independent Power Projects (IPPs) in Arabian

AFRICA: THE INFRASTRUCTURE GAP

Gulf countries and the wider Middle East over the last two decades, can serve as guidance for Africa.

Clearly one model will not fit all, and the variety and complexity of economic and political considerations across the African continent cannot be underestimated. Drawing on the Middle Eastern experience can make a vital contribution to the successful development of power projects in Africa. Project participants should feel confident that, with the establishment of a process which follows generally accepted procurement standards, Africa will continue to represent a significant and exciting opportunity for the power project market.

‘Sustainable and affordable energy development has not kept pace with economic growth’

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CASE STUDY What lessons can be applied in Africa based on the Middle East experience?

• A clear, fair and consistent independent regulatory regime The Middle East experience demonstrates the benefit of having a clear and consistent independent regulatory regime built to respect political realities, facilitate private investment, and ensure fair regulatory oversight for both the public and private sectors.

• A transparent procurement process A thorough, transparent procurement process is essential to encourage market participation.

Project procurement should be by reference to specific nondiscriminatory criteria and open to appropriate public scrutiny.

For example, the opening of financial bids should be on the bid submission date and should take place in public.

• A well-structured and consistent contractual template It is also important for projects to be well-structured and follow a contractual template that delivers 22 April 2016

bankable projects while not requiring extensive reworking for each new development. In the Middle East, the legal contractual matrix, with the power purchase agreement (PPA) at its heart, has rigidly followed precedent through the IPPs and IWPPs across the region, regardless of changes in market conditions.

Bankability: Stability and strength of supply and offtake arrangements In particular, the key to the success of any IPP is ensuring there is a bankable contractual structure. The PPA should ensure a source of revenue over a tenor which is sufficient to ensure the repayment of the project finance loan and provide a return to investors. In this respect the careful selection of creditworthy counterparties is one of a number of critical factors which will determine the bankability of the project. Similarly, the adequacy of the fuel supply arrangements, preferably by way of a fixed price long-term supply agreement, is a key factor in determining bankability.

In Abu Dhabi, the Abu Dhabi Water and Electricity Company (ADWEC) is responsible for the fuel

AFRICA: THE INFRASTRUCTURE GAP

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CASE STUDY

‘It is also important for projects to be well-structured and follow a contractual template that delivers bankable projects while not requiring extensive reworking for each new development’

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AFRICA: THE INFRASTRUCTURE GAP

supply as well as being the single offtaker of electricity produced by all the Emirate’s IPPs/IWPPs. No government guarantee is issued in respect of ADWEC’s payment obligations; however, the Abu Dhabi Government guarantees termination payments under the PPA. Where the creditworthiness of an offtaker presents a concern, a higher level of government support is typically required.

Bankability: Tariffs and revenue generation The tariff that the power producer can charge for the power it generates is fundamental to the bankability and ultimate success of a project. When setting a tariff, consideration should be given to realistic and comprehensive calculations of the costs of generating power and to the price which

end-users are paying for the power.

In Abu Dhabi, payments by ADWEC to power producers have followed a take-or-pay structure comprising a capacity payment and an output payment. ADWEC also takes the fuel supply risk by paying fuel suppliers directly for the fuel consumed by the power producers.

Make use of the multitude of financing sources Projects in the Middle East were able to mobilise and leverage all possible financing resources, from domestic capabilities to multilateral partners.

These have included export credit agencies, multilateral financing institutions, development finance institutions and political risk insurance providers. All these sources are likely to be vital for the development of projects in Africa as well.

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Togo to host an additiona Investment Forum Written by: Nye Longman

EVENTS

nal Africa Hotel m (AHIF) 21-22 June 2016

EVENTS TOGO ATTRACTS A variety of tourist visitors keen to explore its beautiful scenery and enjoy its tropical climate. Latest figures from the World Travel and Tourism Council show that travel and tourism directly accounted for 3.1 percent of total GDP in 2014 and is forecast to rise by 6 percent in 2015, and by a further 2.2 percent each year from 2015 to 2025.

On a wider analysis, the total contribution of travel and tourism to GDP was 6.7 percent in 2014 and is forecast to rise by 5.4 percent by the end of 2015. The plans to host an additional Africa Hotel Investment Forum (AHIF) conference in Togo’s capital Lomé in April run parallel with two major development initiatives designed to enhance the country’s standing as a strategic investment destination for business and tourism by the Ministry of Commerce, Industry, Private Sector Promotion and Tourism of Togo.

Lomé’s new airport terminal, which was scheduled to open in late 2015, will increase passenger capacity from 400,000 to 2 million, and triple the international airport’s passenger and cargo potential. It will accommodate direct flights from 28 April 2016

AFRICA HOTEL INVESTMENT FORUM

“Togo has dynamic plans to develop and expand trade and tourism and we are pleased to welcome this important conference to our country” - The Prime Minister of Togo Komi Sélom Klassou

Cairo, Turkey and Dubai. Within the next decade the expansion of the capital’s sea port will triple its capacity, to 1.2 million containers a year.

Ethiopian airlines announced that it will be flying, in partnership with Asky Airlines, three times a week from Addis Ababa to New York via Togo’s Lomé airport, further strengthening the country’s international links.

Added to this, Lomé’s new airport terminal is set to increase passenger 29

EVENTS

30 April 2016

AFRICA HOTEL INVESTMENT FORUM

and cargo volumes significantly, and the planned expansion of its sea port will triple its current capacity.

The Prime Minister of Togo Komi Sélom Klassou, has announced he will be among the VIPs attending the Africa Hotel Investment Forum, being held under the patronage of Faure Essozimna Gnassingbé, President of Togo, in Lomé in June.

Klassou said: “Togo has dynamic plans to develop and expand trade and tourism and we are pleased to welcome this important conference

to our country. I am confident it will provide an excellent platform to discuss the way ahead.”

The Prime Minister will be joined by African government ministers, tourism experts, international hotel investors and leading business executives.

For more information, please visit:

www.africa-conference.com

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CAM INT

MEROONIAN TEGRITY Written by: Nell Walker Produced by: Richard Deane

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DIAGEO GUINNESS CAMEROON

Diageo Guinness Cameroon, subsidiary of the world’s leading premium drinks company Diageo, details the company’s dedication to its country, employees, customers, and the environment

T

1967

The year that Guinness Cameroun SA (GCSA) was founded

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April 2016

he Diageo Guinness Cameroon we know today began when merchants started taking bottles of Guinness from Europe to Africa on their ships. The Cameroonians fell in love with the product, and Guinness Ltd – based in London – began officially exporting. This led to Guinness Cameroun SA (GCSA) being created in 1967, with the first depot opening in Limbe.

Two years later a brewery was built in Douala, and by 1970, production was firmly underway.

Guinness merged with IDV in 1997, becoming a subsidiary of Diageo Plc. The company is now the worldwide leader of premium beverages, with a range that includes huge brands in the world of wines, beers, and spirits, 29 of which rank as among the top 100 spirits globally.

As well as Guinness, Diageo distributes various Smirnoff-brand mixed drinks and vodkas, several Johnnie Walker whiskeys, Baileys, Gordon’s, Gilbey’s, and many others. Cameroon is now the fifth

S U P P LY C H A I N

largest Guinness market in the world, with around 430 dedicated employees and 29 distributors covering the national territory.

Company diversity Diageo is committed to diversity within its employee base, ensuring meritocracy and inclusiveness by not discriminating based on ethnicity,

gender, disability, religion, or age.

It highly encourages women in particular to apply for roles, and hopes to achieve 50 percent female employees within the next four years. It currently employs 23 percent. The investment Diageo makes in its talent recruitment today has a direct and cumulative positive impact on the company’s performance

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S U P P LY C H A I N

and reputation. Its resourcing process is critical in helping ensure it has the right people in the right place at the right time.

Diageo also considers local recruitment to be vital, and boasts a 100 percent Cameroonian Executive Committee – barring the Managing Director. The company supports its local communities by raising the employment rate of Cameroonians coming from all regions, whether they speak English or French. The Diageo Way of Resourcing (DWOR) provides high-quality tools, resources, and support to help hiring managers and HR teams execute the resourcing process, minimise risks or poor selection choices, and ensure that all decisions are compliant and ethical.

The company offers training,

“The investment Diageo makes in its talent recruitment has a direct and cumulative impact on the company’s performance and reputation”

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DIAGEO GUINNESS CAMEROON

internships, and various development programmes, with a heavy focus on launching the careers of younger people. It has programmes in place for generation Y because it believes they are who will truly make an impact to the company and the country as a whole. They have the opportunity

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to join a global company in which they will benefit from senior leaders’ coaching on both functional and leadership aspects. Diageo has a great culture of training to build capabilities of all employees and particularly people managers for them to provide a wonderful experience to their direct reports. .

S U P P LY C H A I N

Supply chain management To deliver its ambition, Diageo Guinness Cameroon requires an efficient supply chain, and the team has implemented a system capable of rising to the occasion. The company maintains an excellent set of models, frameworks, standards, and systems. The aim

of these is to drive excellence across the supply chain through proactivity, control measures, visibility of day-to-day operations, productivity, and quality assurance.

Logistics and distribution are specifically managed using a Move Business Performance Framework which covers a clear

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www.capital-rh.biz

OUR POLICY TOWARDS DIAGEO GUINNESS CAMEROON Created in August 2002, CAPITAL RH is an Employment Company specialized in Recruitment, Placement and Management of Temporary Workers, Training etc. Our Headquarters is in Douala, Cameroon. To build a progressing business and play a significant role in the success of our client DIAGEO GUINNESS CAMEROON, we have always made sure to: 1. Act in accordance with the highest standards of personal and professional integrity.

2. Conduct our business activities with integrity and ethics and within the framework of business policies of our clients.

3. Respect and continue to comply with the DIAGEO Code of Business Conduct.

To care for the needs in manpower of our client, we keep a rigorous recruitment process as to workers to place, either for temporary jobs (12 months maxi) under CAPITAL RH or for long term jobs under CAPITAL SERVICES, the incorporation of CAPITAL RH. Through various ways, these workers are equipped and encouraged to reach the targets, as well as highly motivated to give their best. Our transparency in our dealings with clients, workers and job seekers has widely publicized our fame in matters of ethics and business integrity.

Address: P.O Box 24199 DOUALA - CAMEROON Tel: (+237) 233 43 87 11/ 699 45 86 08 | Email: info@capital-rh.biz

WHEN YOU REALLY NEED DEPENDABLE POWER SOLUTIONS Discover the difference at Energyst.com

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S U P P LY C H A I N

set of operational and financial Key Performance Indicators, standardised operation procedures, organisation structures, a capabilities agenda, information and systems platform, demand solutions for forecasting, and GPS. The information flows from the consumer to the logistics centre and triggers all operations.

Diageo Guinness Cameroon wants to create value for the local economy, and utilises its supply chain to do so, supporting and building capability amongst the communities in which it operates. From the farming and production of ingredients, to the manufacture and distribution of marketing materials or merchandise, each

“Its reputation can only be sustained if every part of the team is doing the right thing, every day, everywhere�

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DIAGEO GUINNESS CAMEROON

stage of its supply chain impacts its employees, local communities, and the environment, as well as other stakeholders. The company wants to integrate social and environmental standards into every link of those chains, and it has a clear commercial interest in ensuring that its supply chain is increasingly secure, stable, and sustainable.

Diageo employs three core principles in its relationships with suppliers: optimisation of due diligence, build capacity, and the support and creation of value with local businesses. The company’s strategy for attaining sustainable supply chains is partially measured against its sustainability and responsibility targets for 2020, and plans to achieve this with a combination of responsible sourcing, reducing environmental impact, and agricultural value chain partnerships.

Sustainability and ethics Saving water is fundamental to Diageo’s sustainability strategy; it considers the measuring and management of its environmental impact important not only to the planet, but for financial sustainability, especially since its use is so prevalent in the brewing process. Water stewardship is therefore its biggest environmental priority, and this

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S U P P LY C H A I N

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DIAGEO GUINNESS CAMEROON

FOBS Limited is an engineering and sales representative company that was created to provide innovative and flexible solutions to companies in terms of engineering, specific products and industrial consumables for food –beverage companies and other industries.

Our Mission: Ensuring customer satisfaction Innovation for our customers Proximity, reactivity and availability Our expertise supports you in: • The establishment of your internalization strategy • The use of products and monitoring • The choice of solutions and technologies you need to boost your growth

www.iconprodafrica.com +237699483912 | lionel.tousse@iconproddrc.com

FOBS LTD Z.I. Magza Bassa P.O. Box 5913 Donala - Cameroon

Tel: +237 695 19 21 11 Mail: fobs@fobs-group.com Web: www.fobs-group.com

S U P P LY C H A I N

is enshrined in the Diageo Water Blueprint.

The long-term plan is to be a business which does not materially deplete natural resources, contribute to climate change, or cause damage to species, habitats, and biodiversity.

The company has its own ethical policy – a Code of Business Conduct – which is underpinned by law, to ensure that employees and consumers are protected.

This defines the company’s values and business performance, and the expectations of how those representing Diageo should behave. Reputation is critical to long-term commercial success, and the business wants to be seen as one of the world’s most trusted and respected companies – as well as being a great place to work – and for Diageo to become a by-word for acting with integrity and responsibility.

The fact that many of Diageo’s brands have

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DIAGEO GUINNESS CAMEROON

been around for generations is part of what the company believes sets it apart. The phrase ‘celebrating life every day, everywhere’ is at the heart of the business; it means that people should be able to celebrate with Diageo’s brands at any occasion, anywhere in the world.

Diageo’s global business trades accross done across approximately 180 countries with over 30,000 employees and offices in 80 countries, and the staff truly cares for the legacy of the brands. The company takes its role as an alcohol

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producer seriously, knowing that misuse can reflect upon its brands, and has programmes and tools in place for customers to make informed choices about their drinking decisions.

It is this sense of community which makes Diageo unique.

An essential part of its contribution to the wider

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Number of e working fo Guinness C

communities which allow the business to flourish is a long-term investment in actively-managed programmes that help serve critical local needs. It has recently made a meaningful assessment of the potential impact of its supply chain, and it is increasingly focused on empowering stakeholders, from small-scale farmers, to bartenders who serve Diageo’s brands, and in particular, to women. employees Diageo or Diageo believes that its Cameroon reputation can only be sustained if every part of the team is doing the right thing, every day, everywhere.

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S U P P LY C H A I N

Doing business with integrity goes beyond having a good corporate governance framework and policy compliance; it is about creating a culture that demands that integrity. Smart investments in quality, targeted innovations, and cost management have ensured healthy growth for Diageo in recent years, and it has its vast team to thank for this continued success.

The company recognizes that these strengths have carried it thus far, but that to improve performance in the future, it will need to truly be the best in its field to maintain its excellent reputation. As a result, Diageo Guinness Cameroon places all of its flair, positivity, and passion for the business at the centre of all future projects and initiatives, to ensure it stays firmly ahead of the curve.

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Networking finance Written by: Nye Longman Produced by: Mariana Lee

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ECOBANK NIGERIA

One of Africa’s largest and fastest growing banks, Ecobank has firmly tied itself to the development of the continent and has been particularly successful in Nigeria, as African Business Review explores

B

etween 2014 and 2015, Ecobank Nigeria grew at an astonishing rate of 155 percent.

While Africa’s largest economy is no stranger to high growth percentages (its annual economic growth has frequently hit the 6 percent mark over the past decade) the Nigerian branch of the pan-African bank has made a particularly unique effort.

Bolstering its growing position in a crucial market by doubling down on its technological capabilities, Ecobank Nigeria is well-positioned to become the bank of choice – not only for Nigerians, but for all its potential customers in the 36 African countries in which it does business.

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Operations Ecobank’s Group CEO Ade Ayeyemi explains that the recent success of the bank is not simply down to the economic prosperity of Nigeria: “Indeed, we have had substantial growth in recent years,” he says.

“This has been attributable to discipline and dedication. Growth came with our expansion and also because we took advantage of the environment and worked hard to create what we have today.

“We are a full-service bank providing wholesale, retail, investment, and transaction banking services and products to governments,

FINANCE

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Â

Sales Hotline: 0700CUMMINS (07002866467) 24/7 Service Hotlines: 08128990192 www.cumminswestafricaltd.com

Head Office 8, Ijora Causeway, Ijora, Lagos.

Tel: 01-2772880

Victoria Island Showroom 7A, Adeyemo Alakija Str Ijora, Lagos, Victoria Island Tel: Tel: 01-4530136

Cummins West Africa Limited is a dynamic, customer focused power solutions firm specializing in the sales and maintenance of CUMMINS DIESEL GENERATOR SETS. Product range covers the entire spectrum of any requirements from 15KVA to 3000 KVA. We offer complete factory-assembled package. Cummins offer reliability, fuel-efficiency and low cost of ownership over the lifespan of the products.

Abuja Branch 1,Leventis Close, Central Business District, Abuja, FCT. Tel: 09-4611631

Port Harcourt Branch Plot 116, Trans Amadi Ind. Layout, By Revoc Junction, Port Harcourt, Rivers State. Tel: 084-468786

Kano Branch No 7, Sani Abacha Way Airport Road – Kano Tel: 064-388 680

ECOBANK NIGERIA

SUPPLIER PROFILE

CUMMINS WEST AFRICA

Cummins West Africa Limited is a dynamic, customer focused power solutions firm specializing in the sales and maintenance of CUMMINS DIESEL GENERATOR SETS. Our product range covers the entire spectrum of your requirements from 15KVA to 3000 KVA. We offer complete factory-assembled package. Cummins diesel generators offer reliability, fuel-efficiency and low cost of ownership over the lifespan of the products.

In line with our deep commitment to customer satisfaction, Cummins West Africa Limited invests extensively in all aspects of product support as part of its conformity to professional excellence and international standards which includes a 24/7 (round-the-clock) service support, manned by highly trained field service engineers, who are always mobile and ready to respond to emergency calls.

Website: www.cumminswestafricaltd.com 56

April 2016

FINANCE

financial institutions, multinationals, international organisations, medium, small and micro businesses and individuals.

“Our net revenue in 2014 was $2.28 billion. For the first nine months of 2015 it was $1.6 billion.

Profit before tax for 2014 was $520 million, and $398 million for the first nine months of 2015.”

What Ecobank Nigeria has today is a truly expansive offering of banking and financial services, available to people who might be accessing banking for the first time, all the way up to supporting businesses and investors. Its offering, therefore, provides services for personal, business, and corporate customers. Alongside typical services such as loans and accounts, Ecobank Nigeria offers such services as cash management solutions, supply chain financing, and a range of investor and asset management services.

Ayeyemi expands: “Today, our group employs more than 20,000 people in 40 different countries and we have over 1,200 branches and offices.

Our geographical map not only covers Nigeria and the other countries of Anglophone West Africa, but also the francophone grouping of countries that make up the West African Economic and Monetary Union (UEMOA), and Central, Eastern and Southern Africa.”

“Growth came with our expansion and also because we took advantage of the environment and worked hard to create what we have today” – E cobank’s Group CEO Ade Ayeyemi

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ECOBANK NIGERIA

$2.8 bn (2014) 58

April 2016

The amount of revenue created by Ecobank Nigeria

FINANCE

The value of the network Keen to deliver the best possible services to its customers, Ecobank has formed a number of partnerships that have enabled it to achieve this, as Ayeyemi explains: “We recently implemented a partnership with Orange in the area of mobile money and mobile banking to further bring banking to the doorsteps of our customers in Côte d’Ivoire, Mali, Senegal, Guinea Conakry, and Niger.

“This is in addition to our Ecobank Mobile platform in Nigeria and Kenya, and existing partnerships with Airtel, MTN, Tigo and Moov in about 18 other affiliates within our network.”

From a customer relationship management perspective, the bank’s strategic objective is to drive the ease and speed of doing business. In order to achieve this, it has driven the use of digital channels, tailored to specific customer segments, for sales and service delivery. These channels are particularly easy to

access, and speed up the banking process, making it a great deal more convenient for customers.

“We formed landmark alliances with major mobile telecommunication companies such as MTN, Airtel and Orange to offer mobile financial services to our customers across Africa. Ecobank is also the first bank in Africa to partner with Western Union in the delivery of Western Union transfers to bank accounts as well as encashment of transfers through our ATMs. “We are probably the only bank in Africa that accepts VISA, Master-Card, UnionPay and PAC cards, and are also active in e-commerce with the recent launch of Mymall in Nigeria.”

Ayeyemi adds: “These initiatives informed changes to our sales approach as well as our first and second line service support, impacting on our front, middle and back-offices. We have widened our card offering, enhanced our Corporate and Retail Internet

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banking and Collections platforms, increased the coverage of our 24/7 Contact Centre services, further innovated our Mobile Banking product offering, and continue to expand our distribution of Merchant Point of Sale (POS) Terminals.”

Technology Of late, technology has been a key enabler for the business in allowing it to achieve its objectives. Having already proved its worth several times over, technology has become a

goal in itself; Ecobank now seeks to build a technology-led banking institution that is capable of meeting future challenges from the disruptors in the financial services space.

This technology-led transformation began in 2006 when the company consolidated 37 small data centres that were spread across the continent into a single tech hub in Accra, Ghana. Not only has this acted as the backbone that supports

“The Ecobank story is an African story – our core vision, and the ethos of our company is one that brings all Africans together. We don’t do a hard sell to attract talent, but we get the best” – Ecobank’s Group CEO Ade Ayeyemi

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service packages, it has also worked as a platform for developing technological offerings.

Ayeyemi adds: “Our focus is to continue to leverage digital channels to improve the convenience and satisfaction of our customers. In this regard, we recently upgraded our Retail Internet Banking platform in Nigeria. We have made recent technological advances in our customer on-boarding, cards, mobile,

remittances, processing platform, and office efficiency systems.

“Ecobank has also deployed an image-based workflow processing platform that enables remote processing of customer transactions. Another part of our technology-led banking vision is to make work easy for our employees by deploying various office efficiency systems, whether in communication, procurement, or travelling.”

Talent management Ayeyemi

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explains how the bank’s talent management philosophy is uniquely linked to a shared vision for the success of the continent. He says: “The Ecobank story is an African story – our core vision, and the ethos of our company is one that brings all Africans together. We don’t do a hard sell to attract talent, but we get the best.

“The people we attract join the group for both intellectual and emotional connection.

The emotional connection is the Africa story – the yearning of Africans to contribute to this journey. There is clear evidence of the intellectual connection in how we develop our employees.”

The opportunities for progress and development within the corporate structure of the bank are almost endless. Its development platform has received repeated investment over the years and this ongoing initiative has been continually bolstered by internal efforts to create a comfortable and inspiring workplace for its employees.

Ayeyemi expands: “Ecobank believes in the overall development of its employees. As part of our HR strategy, we have built and put in place a separate Ecobank Academy, which acts as the conduit for design and execution of our learning and development strategy across the group.

“First we have our Professional Development programmes. These are business-specific

“We want to win in the marketplace with our customers and our investors.

We want to win with our employees and with the communities where we operate. For our customers, we want to be a provider of choice and for our employees, an exemplary employer” – Ecobank’s Group CEO Ade Ayeyemi

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programmes that are jointly designed with the responsible business executive to build capabilities on the skills and competencies required to deliver the business strategy, as well as enhance our talent bench-strength. “Our Leadership and Management Development programmes are designed specifically to ensure a strong Leadership team with the combined best practice

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leadership capabilities, coupled with Ecobank agreed leadership requirements. These programmes are designed based on categories of leadership in the organisation and range from supervisory to executive management positions. “Our Business Enabler programmes are designed to address specific employee development needs such as negotiation, influencing, and

FINANCE

1985 The year that Ecobank Nigeria was founded

communication skills.”

As a key market for the Ecobank group, Nigeria offers the business a wealth of opportunities and, in turn, the bank has an extensive offering of financial and banking products that appeal to every section of the country’s rich socio-economic makeup.

Ayeyemi concludes: “We want to win in the marketplace with our customers and our investors. We

want to win with our employees and with the communities where we operate. For our customers, we want to be the provider of choice, and for our employees, an exemplary employer. For our shareholders, an investment of choice, and for the communities where we operate, a neighbour of choice. We want to be judged as an example of best practice to which others can aspire.”

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Pullin

ng tin

Written by: Nell Walker Produced by: Anthony Munatswa

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Alphamin Resources is in the process of building a mine on one of the world’s highest grade tin deposits, providing jobs and stability and contributing to sustainable long-term development for locals in a country that has suffered conflict for many years.

M

auritius-based mining company Alphamin Resources bought and began developing at the Bisie tin project in 2011. The company is listed on the Toronto Stock Exchange, and its DRC project holding company has the Democratic Republic of Congo’s government as a 5 percent shareholder with the Industrial Development Corporation as an 11 percent shareholder (expected to soon be 15 percent). Alphamin is developing a mine and processing plant to mine the most developed of its resource targets, Mpama North, and Boris Kamstra, Alphamin CEO, explains its current status: “We completed a feasibility study last month; we are now aiming to

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raise the capital required to build the mine and then start building it,” he states. “We want to be in production by 2018, so my job is to get the money to do that, make sure the team on the ground is doing what it needs to do, and ensure they have what they require to succeed.”

Kamstra considers Bisie more than just a mining project: “It’s in the jungles of the Walikale region, which is a region that has had a difficult recent history from which it is now emerging. The mine’s location is very remote, but the potential for Alphamin to materially change the region is enormous.

Throughout our management team is a very strong component of wanting to be part of a project that makes a difference which

MINING

“Throughout our management team is a very strong component of wanting to be part of a project that makes a difference which ensures that they will make this a success due to the positive impact it’ll have” – Boris Kamstra, CEO

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AFRICAN

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ALPHAMIN RESOURCES

1981 The year Alphamin Resources was founded

ensures that they will make this a success due to the positive impact it will have, and how we reduce the challenges in front of us.

“Building and operating a mine at Bisie will not be a simple operation, one has to think through all of the potential issues one may have to confront and develop plans to deal with them. There are no other projects in the world I can think of that have the combination of extraordinarily positive project fundamentals, and a whole development impact attached to it along with many challenges and opportunities. It’s actually a draw for employees and community members sensing economic development; a lot of people

“There are no other projects in the world I can think of that have the combination of extraordinarily positive project fundamentals, and a whole development impact attached to it along with many challenges and opportunities” – Boris Kamstra, CEO

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have approached us wanting to be part of this.”

Within the latest arm of Alphamin’s tin mining project operating between 2017 and 2018, a processing plant will be built to produce around 9,000 tonnes of tin in concentrate per year. The company has had to adopt a unique approach to its supply chain due to the remote location: “It’s a little tricky in that many of the roads we are going to be using are not passable by your average truck,” says Kamstra. “So what we are planning to use is a shunt system.

“We’ll have six-by-six or eight-by-eight militarytype vehicles that can carry a 20-tonne container,

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MINING

Alphamin’s Bisie Camp Annotated

ALPHAMIN RESOURCES

MINING

and this will run between a suitably located depot and the mine. We are going to have to consolidate all our supplies and logistics at one depot, and that will be everything from diesel right through to consumables.

These will then be packed into specially designed containers for the trip to the mine. Once unloaded they will return with twenty tons of tin concentrate packed into them.”

According to Kamstra, logistics and transport are less important than they would be for less valuable materials which require efficient bulk transport systems.

“We manage logistics in a pretty basic and fundamental way,” he says. “We’re using a combination of existing technologies and readily available solutions in the area, and we incorporate the relevant ones that work for us into our operational plan.”

Far from wishing to corner the DRC market for itself, Kamstra hopes that Alphamin will prove to be a catalyst for other companies

to come to the area: “If other businesses come in, that’s to our advantage and to that of the North Kivu province. The more companies you have operating, the more business will emerge. This has multiple effects in terms of economic activity; it’s like a snowball. It continues to roll and makes everything easier for everyone.

“We are in the tin market because we believe the price pressure for tin is going to come from the supply side rather than the demand side.

The reason for that is historic; tin was largely a forgotten commodity until its incorporation into solder, and it’s rather tricky to find economically viable deposits of tin. Prices have flown up recently; they did die down a little reaching a low point at the beginning of the year, but we’re delighted to see they have started to improve recently.

“It is estimated that the industry needs tin prices of about $22,000 a tonne in order to provide sufficient feed from 2018 onwards, because

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“We are developing a secure supply of fundamental material, our customers have to expend almost zero money ensuring it’s conflict-free” – Boris Kamstra, CEO other projects that are waiting in the wings require that kind of price to get going. However, we’re doing okay at the current pricing. It gives us a robustness and ability to absorb market gyrations which makes for a very nice business model while we move into production before 2019.”

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The DRC, Kamstra explains, is an incredibly wealthy area from a natural resource perspective.

“Mining, hydrocarbons, agriculture, forestry, fresh water for cultivation and hydroelectricity – it has everything in abundance. However, when the US conflict mineral

MINING

legislation came out in 2010, the informal tin mining industry in the DRC collapsed because they could not get decent prices, as the material was not certified as conflictfree. Despite this potential wealth, very little benefits of mineral extraction have reached local populations historically in the DRC, and especially from recent illegal artisanal production of conflict minerals. Therefore Alphamin has committed to a relatively strong community social investment of 4 percent of operating expenditures to be invested in local economic, health, education and social infrastructure through a community-driven not-for-profit.

“Alphamin can offer absolutely clean, 100 percent certified conflict-free tin from this region, so our end users will be assured of a continued supply of tin, which is something a lot of people are getting worried about and that it will be easily verifiable as conflict free. We are developing a secure supply of fundamental material for the modern economy, our customers will have to expend almost zero money ensuring it’s conflict-free, and by purchasing the product, they are materially improving the lives and general wellbeing of the local people. That’s a high-value proposition for the tin industry in general and certainly for most end users.”

350 The total number of staff employed

by Alphamin Resources

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