African Review July 2012

ATR July 2012 Cover_Layout 1 21/06/2012 14:41 Page 1

www.africanreview.com

Europe €10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12

July 2012

African Review of Business and Technology

P74

July 2012

Making money from structural steel

Volume 47 Number 15

P51

Generating business

in Africa’s informal

www.africanreview.com

energy markets Construction:

Mantrac Nigeria MD Ayman Ezz El Din P62

Transport:

IT that improves traffic management P46

Finance:

Satellite technology to support banking P40

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essential.

121 Years of Excellence

MarelliMotori 1891-2012

www.marellimotori.com

速

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UP FRONT

Editor’s Note

www.africanreview.com

Europe €10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12

July 2012

P74

F

ocus on diversification, a broad range of equipment, on delivering reliable, customer-driven solutions for applications in construction, infrastructure, mining, transportation, energy, and manufacturing. Focus on financial services, on improved information technology in application, on training and process development.

As entities and operations across our continent meet needs with a multitude of practices and processes, so imports and exports generate value within economies, and companies compete to grow, to consume, to gain sales, to represent value.

Products are key to production. To sell that which is produced is to aid completion of an economic cycle, doing what needs to be done to achieve the amelioration of national and international conditions of commerce.

So, we see, and we seek to represent, demand and supply, cross-continental trans-regional trade, delivery, provision and service - that is, the application of solutions, the combination of tools and employees to generate revenues - here and at www.africanreview.com, here and on Twitter, @africanreview.

Making money from structural steel

P51

Generating business

in Africa’s informal

energy markets Construction:

Mantrac Nigeria MD Ayman Ezz El Din P62

Transport:

IT that improves traffic management P46

Finance:

Satellite technology to support banking P40

Cover picture: The continuous improvement of commercial conditions depends on investment in technologies to deliver improved infrastructure (Photo: IBM)

Andrew Croft, Managing Editor

Contents

REGULARS 04 Agenda:

22 Bulletin:

Commercial innovations and initiatives

Key developments with African enterprises

P38 FEATURES 29 Ghana

Providing and supporting use of photovoltaic systems in Ghana

32 Finance

Microfinance initiatives and institutions; private equity support for development; information technology for financiers; and satellite connectivity for banking

P79

44 Technology

How social media affects the role of the printer

46 Transport

Systems and solutions to support management of Kenya’s traffic flows

50 Power

The past year’s business in markets for generating sets

66 Construction

Safe use of hydraulic excavators; South Africa’s national infrastructure drive; a product portfolio to address West African markets; plant investment for a structural steel business; and roadbuilding with a rotary mixer

79 Mining

Ongoing business in Ghana’s vibrant minerals sector

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Serving the world of business

African Review of Business and Technology - July 2012

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NEWS

Agenda / North Casablanca Finance City attracts interest from Arabian investors Casablanca Finance City, a financial centre designed to act as a catalyst for growth in North and West Africa, is attracting growing interest from companies in the GCC region.

Amongst those realising the potential is an Abu Dhabi-based asset manager Invest A.D. who recently obtained a license.

The Moroccan Financial Board, which is responsible for running Casablanca Finance City, held a seminar in Dubai in June 2012. The seminar attracted senior executives from UAEbased insurance companies, asset managers, banks and other finance firms.

Casablanca Finance City offers specific advantages to businesses operating in financial services, professional services and insurance, and to regional headquarters of multinational firms. With over 2,500 international businesses already setting up shop in Morocco and creating a live ecosystem that takes advantage of the country's strategic location, Morocco is well-placed as a regional hub.

Said Ibrahimi, chief executive of the Moroccan Financial Board, and keynote speaker at the seminar, said, "It has been encouraging to see strong interest from companies in the Arabian Gulf. North and west Africa has a prosperous future and Casablanca Finance City is well placed to help investors to access opportunities in the Abu Dhabi-based Invest AD recently obtained a license to operate within Casablanca Finance City region and beyond by acting as a hub city.

In investment terms much of this region is uncharted territory and, by providing a gateway, Casablanca Finance City can help investors to participate in Africa's exciting transformation."

Casablanca Finance City is committed to a more collaborative way African countries can work together to grow sustainably. The financial centre is designed to aggregate opportunity, remove traditional barriers to investment and give investors the economies of scale they need to take full advantage of growth potential in the ‘Greater North West Africa’ (GNWA) region.

Through an ecosystem of international business, financial institutions and professional services, Casablanca Finance City keeps dealings with diverse African markets as simple and economical as possible, supporting the ambitions of investors and GNWA countries.

Monitoring mobile health Mobile health in Africa & the Middle East (AME) is developing quickly, but there are differences in drivers and characteristics of the mHealth models employed in each of these areas, according to a report from Pyramid Research (www.pyr.com). ‘Drivers of mHealth Models in Africa & the Middle East’ examines the MNO-backed mobile health services model in the Middle East and highlights the best practices that have helped operators in this region expand the reach of healthcare access. Pyramid Research provides, also, an overview of the mHealth model in Africa, supported by two major mHealth services examples that are run in conjunction with mobile network operators. Furthermore, Pyramid analyzes mobile health service technology developments made in Africa, assessing how and why innovators and entrepreneurs helped facilitate solutions to pressing needs in healthcare service delivery, pointing out where innovators and entrepreneurs in the Middle East should devote resources.

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African Review of Business and Technology - July 2012

Business training and technology tools

C

isco has opened an Entrepreneur Institute Training Centre in Morocco in partnership with the America-Mideast Education and Training Services, Inc. (AMIDEAST). The Entrepreneur Institute will provide business acceleration skills through the use of technology.

AMIDEAST, a private, nonprofit organization that strengthens mutual understanding and cooperation between Americans and the people of the Middle East and North Africa, will offer in-person as well as distance learning sessions, to help entrepreneurs from throughout the region improve their skills and enhance business development opportunities. It will also provide a forum for owners of small and medium-sized businesses (SMBs) to collaborate and share business expertise.

Joseph Phillips, country manager, AMIDEAST, Morocco (right) and Hassan Bahej, general manager, Cisco Morocco (left) jointly host a press conference to mark the launch of a Cisco Entrepreneur Institute Training Center in Morocco

Small and medium businesses represent a significant portion of the North African and Middle Eastern economy, and therefore supporting their development and driving their performance can ultimately help to accelerate economic growth and raise living standards. The Cisco Entrepreneur Institute courses are designed to accelerate business through the effective use of technology and to encourage innovative solutions and the sharing of best practices, which can thereby enable growth and job creation.

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Trenching. Loading.

Heavy construction.

Okay.

Built for heavy production duties such as trenching, moving rocks or truck loading, the EC380D and EC480D excavators from Volvo deliver dependable power with high torque – yet with lower fuel consumption and emissions. Intelligent hydraulics prioritize flow according to the work being done. Add high strength booms, arms and a tough undercarriage, and what you have is one tough operator.

Volvo’s D-Series excavators: heavy duty as standard. www.volvoce.com

Albarajoub Engineering Co. SUDAN Tel: +249 183 77 84 13 E-mail: info@albarajoub.com

Equatorial Business Group Pvt Ltd Co ETHIOPIA Tel: +251 911 457758 E-mail: ebg-eab.msm@ethionet.et

Auto Maquinaria Lda Auto Sueco (Angola) SARL ANGOLA Tel: +244 9 1250 7464 E-mail: adavid@autosueco.co.ao

Ghabbour Egypt EGYPT Tel: +2 02 42155314 E-mail: aelgammal@ghabbour.com

Auto Sueco Ltd KENYA UGANDA Tel: +254 713 974 808 E-mail: jose.moreira@auto-sueco.co.ke

Leal Equipements Compagnie LTEE MAURITIUS, MADAGASCAR, SEYCHELLES Tel: +230 207 2100 E-mail: djauffret@lec.lealgroup.com

TANZANIA Tel: +255 753 631 442 E-mail: p.pinto@autosueco.pt

Nordic Machinery TUNISIA Tel: +216 71 409 260 E-mail: khaled.haddad@nordic.tn

A. Yazbeck and Sons Ltd SIERRA LEONE Tel: + 232 22 232 324 E-mail: joe@ayazbeckandsons.com

Séra SENEGAL/MALI/ MAURITANIA Tel: +221 33 859 07 70 E-mail: contact.volvo@sera.sn

Babcock Equipment BOTSWANA, NAMIBIA, SOUTH AFRICA, ZIMBABWE Tel: +27 11230 7300 E-mail: enquiries@babcock.co.za

SMT Multi-Tech Services LTD BENIN/TOGO Tel: +229 21 381438 E-mail: info@multitech-bj.com BURKINA FASO Tel: +233 30 283351-58 E-mail: multitech@multitech-gh.com GHANA Tel: +233 30 283351-58 E-mail: multitech@multitech-gh.com LIBERIA Tel: +231 63 20181 E-mail: multitech@multitech-gh.com

ZAMBIA Tel: +260 2 611 693 E-mail: garthr@babcock.co.zm COGETP ALGERIA Tel: +213 20 36 0216 E-mail: kamel.saidani@cogetp.com

volvo construction equipment

SMT BURUNDI Tel: +32 2 724 90 74 E-mail: info@smt-europe.eu CAMEROON Tel: +237 70 74 24 52 E-mail: info@smt-cameroun.com DEM. REP. OF CONGO Tel: +243 39 99 93 46 37 EUROPE Tel: +32 2 724 90 74 E-mail: info@smt-europe.eu CÔTE D’IVOIRE Tel: +225 21 75 16 27 E-mail: info@smt-ci.com NIGERIA Tel: +234 813 778 38 44 E-mail: info@smt-nigeria.com REP. OF CONGO (BRAZZAVILLE) Tel: +242 06 953 51 52 E-mail: info@smt-congo.com RWANDA Tel: +32 2 724 90 74 E-mail: info@smt-europe.eu Volvo Maroc S.A. MOROCCO Tel: +212 22 67 8500 E-mail: ilyas.essaadi@volvo.com

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NEWS

Agenda / North Bombardier signs land deal Canadian aircraft manufacturer, Bombardier Aerospace, has announced that it has acquired land in Morocco for a manufacturing facility to be established by next year. The land is situated near the airport in Casablanca’s free zone. The company has signed a deal with Moroccan property holding and management company, Midparc Investment S.A., for the land in the free zone in Nouaceur.

“The site met our stringent requirements and high standards and we look forward to the start of the construction and production of the first Moroccan-built Bombardier aircraft components,” said Bombardier Aerospace president, Guy Hachey.

A

The Bombardier Learjet 85

Centrax signs US$40mn Tunisian turbine deal UK-based industrial power systems specialist, Centrax Gas Turbines, is to supply the power for Tunisian tissue producer, AZUR’s, electrical plant that will supply products throughout northern and central Africa. The deal is worth US$40.3mn.

Centrax will provide a 501-KB5 gas turbine to provide the reliable, consistent and costeffective supplies of electricity on which the purpose-built plant depends. Located in Zaghauan, 100km south of Tunis, the plant will house new papermaking machinery capable of producing 9,000 tonnes of tissue and hygiene products each year.

The gas-fuelled indoor 501-KB5 package produces up to 3.9MW of power and its exhaust heat is recovered to benefit manufacturing processes. The Centrax package will provide enough power to enable AZUR to supply its large domestic market while also exporting 20 per cent of its products to Algeria and a further 10 per cent to Libya.

As the most advanced plant of its kind in northern Africa, the KB5 package can be upgraded easily to the larger KB7 turbine in the future, a key factor behind Centrax being chosen to power the facility.

Telecom Egypt to launch MVNO? Limited scope for further increasing mobile penetration amongst Egypt’s 80mn population has intensified competition in terms of both tariffs and products between Egypt’s three GSM operators – Vodafone, Mobinil and Etisalat – who may soon be joined by the country’s first virtual network operator in the form of Telecom Egypt.

Recent figures from the country’s Ministry of Communications and Information Technology (MCIT) suggesting that there are 91.32mn mobile subscriptions in Egypt, equating to a penetration rate of 112.3 per cent. This high figure reflects the fact that many people have two or more SIM cards and several telephones, rotating SIMs depending on whom they are calling.

According to a report by the Oxford Business Group, the potential emergence of state-owned, fixed-line operator, Telecom Egypt, as a mobile virtual network operator (MVNO) offering services through existing infrastructure, may force greater collaboration on network-sharing.

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African Review of Business and Technology - July 2012

SkyVision and WORK sign IP trunking deal dvanced satellite communications equipment manufacturer, WORK Microwave, has announced that its DVBS2 IP-Modem SK-IP has been selected by IP connectivity provider, SkyVision, to enable IP trunking services in the North Africa, the Middle East and Asia. Utilising WORK Microwave’s IP modem SK-IP on SkyVision’s satellite platform, SkyVision is now able to provide Internet connectivity solutions with uninterrupted performance regardless of weather, location, or environmental conditions.

WORK Microwave’s DVB-S2

“Our satellite platforms provide end-to end IP connectivity as well as an extensive suite of customised solutions and services that’s available globally,” said Golan Madar, vice president of operations at SkyVision.

“For the recent IP trunking project, we specifically required reliable, proven, and platform-optimised equipment to ensure the highest quality of service to our customers. WORK Microwave’s IP-Modem SK-IP, with its advanced features, customisable options, and strong industry reputation proved to be the perfect solution for optimising power consumption, bandwidth and throughput.”

The WORK Microwave IP-Modem SK-IP features a multichannel ACM system (OptiACM) to support full integration of ACM capabilities in point-to-point and point-to-multipoint satellite network links.

OptiACM gives users a 30 per cent capacity gain over standard DVB-S links and can more than double available throughput.

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Power Generation

85–770 kVA

Off-road 129–565 kW

UPTIME IN PRACTICE

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Today, uptime is critical for all power generation installations. Hospitals, airports, concert events and other operations depend on secured and continuous power supply.

That’s why Volvo Penta engines are reliable and safe – and a perfect match, whatever your specific application may be.

By meeting present and future environmental legislation they are also your investment in a more sustainable tomorrow.

POWERING YOUR BUSINESS WWW.VOLVOPENTA.COM

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NEWS

Agenda / East Centum profit drop shocks Kenyan market Kenyan investment firm Centum has posted a 40 per cent drop in profits without issuing the profit warning required by market rules when full-year profits fall by at least 25 per cent. The revelation had an instant knock-on effect on the company’s shares.

Companies are required by market regulator Capital Markets Authority to publicly issue a profit warning if they expect their.

"The company had not issued a profit warning so the results come as a surprise to the market," Standard Investment Bank said in a note to clients. "Whereas the profitability results are disappointing, we think there is significant value yet to be unlocked from the business, embedded in a potentially understated net asset value."

In an interview with Reuters, chief executive, James Mworia, blamed the nature of the business on the lack of a profit warning, saying the management believed they were on track to achieve a less than 25 percent profit fall, right up to the end of the financial year.

Toyota opens pre-owned car showroom in Nairobi

T

oyotsu Auto Mart, a subsidiary of Japanese company Toyota Tsusho, has opened a new US$5.8mn multioperational showroom in Nairobi South C suburb to sell pre-owned Toyota vehicles. The company will also sell Daihatsu, Hino and Subaru brands.

Affiliated to Toyota Kenya Limited, the company will also provide minor and major after-sales services for all Toyota models after every 5000km travelled.

Somali commerce ‘can encourage political stability’ Figures from the Somali business community have called for aid organisations to invest in business and infrastructure in Somali territories. Businesspeople, British government officials, NGO representatives, and experts on the region recently gathered in London, in the UK, to discuss development within Somalia.

In response to the London conference, an assembly entitled ‘Somalia: Business as usual?’ was hosted by the Royal African Society and introduced by Britih politician Alun Michael MP. It offered an alternative debate focusing on how Somalia's booming business, trade and investment activities can be used to help the region stage its own recovery from the many political and security problems that have plagued it for more than twenty years.

“Somalia’s future lies in its economy,” Abdirashid Duale, CEO of the Dahabshiil financial services and telecommunications group, said at the meeting. “The lifeblood of every Somali is trade, so the most important thing for the region is for enterprise to flourish.

“Despite problems of security and instability, Somalis have already demonstrated – through the successes of key sectors such as livestock, money transfer and, more recently, telecoms – that Somali territories are fertile grounds for trade and commerce.”

8

In regions where the political climate is stable, business confidence is strong. During the meeting many commentators expressed the view that Somaliland’s growing economy can help encourage political stability across the region. Business leaders called for practical solutions such as assistance with investment and job creation as a means to protect and offer hope to vulnerable Somalis, particularly the youth.

Duale also called for the international community to help unlock the potential of social entrepreneurship in the region, so it can stage its own recovery from issues that have plagued it for more than 20 years.

“Somalis have high hopes that the international community will develop a concrete plan to improve the region’s future,” said Duale. “The key to unlocking Somalia’s potential is international investment in social entrepreneurship and education.

“It will help Somalis help themselves by teaching them how to create new business opportunities, more jobs and a more sustainable economy. These practical alternatives will protect vulnerable Somalis, particularly younger generations, from the pressure put on them by extremist groups linked to piracy and terrorism.”

African Review of Business and Technology - July 2012

Yoshihiro Goto, MD of Toyatsu Auto Mart

Apart from enjoying the option of buying from a wide variety of pre-owned or pre-ordered in-house stock units that meet specific customer requirements, the company will also assist in remarketing fleet and individually-owned Toyota vehicles.

The showroom will include a large-scale servicing area run by a service manager in-charge of four technicians, a Toyota parts shop and shops run by AON Minet for insurance, Auto Insure for road registration, Tsusho Capital for in-house financing and Tramigo for vehicle tracking devices.

The company is also offering a predelivery service for the pre-owned vehicles.

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NEWS

Agenda / East Tanzanian companies ‘overlooked for construction contracts’ Tanzanian sub-contractors are missing out on contracts for major construction projects to large foreign companies according to industry expert, Godfrey Simbeye. Simbeye, executive director of the Tanzania Private Sector Foundation, said that the problem lied in unbalanced policies that engender bias against local contactors. To combat this problem, the foundation is implementing measures to empower and facilitate local contractors to undertake major projects.

"Stakeholders in the construction industry are of the opinion that future generations of subcontractors are slowly being nipped in the bud, thus killing the nascent industry and its future,” Simbeye was quoted as saying by Tanzania Daily News. "The flow of knowledge, as would be expected, is minimal with these contractors withholding it. Even when the foreign and large local contractors employ indigenous Tanzanians, they do not teach them any skills. They keep them working at the lowest paying jobs, for long hours a day.”

US$930mn to be invested in Kenyan renewables Two Kenyan firms are set to invest US$930mn in order to generate 457 MW of electricity from wind and solar power. As the country grapples with rising power demands, Gitson Energy Limited plans to spend US$830mn on building a 300 MW wind farm and a 50 MW solar plant at Bubisa in Marsabit, Northern Kenya.

Additionally, Bluesea Energy Ltd has invested US$100mn in various projects utilising wind, including a 40 MW farm in Isiolo, 7 MW in Belgut, Rift Valley Province, and 60 MW in Lambwe Valley. Gitson plans to use US-backed technology for the wind farm and solar plant, and has applied for funding from EximBank and Overseas Private Investment Corporation.

Over the last few years, Kenya has been developing other sources of energy away from

unreliable hydro and fossil fuel sources.

Bluesea lead engineer Sam Ochieng noted that projects in Isiolo, Lambwe Valley and Belgut are at various levels of implementation.

Gitson chairman Dr Michael Nderitu has commented that the company has been negotiating with the national power utility, Kenya Power, for a power purchase agreement (PPA), which would specify the terms of injecting electricity into the national grid.

Gitson’s sites could be linked to the national grid through the planned 1045km, US$1.2bn high voltage electricity transmission link between Ethiopia and Kenya, which is due to be completed in 2016. Valued at US$1.2bn the transmission link project will connect Welayta Sodo in Ethiopia to Suswa in Naivasha, Kenya.

Expanding risk services in Uganda Insurance broking and risk management firm Marsh has completed its acquisition of Alexander Forbes Risk Services’ operations in Uganda. This transaction follows Marsh’s acquisition, earlier this year, of Alexander Forbes’ South African insurance broking operations, Alexander Forbes Risk Services (AFRS) and ancillary operations, as well as Alexander Forbes’ insurance broking operations in Botswana and Namibia.

Brian Blake, Vice Chairman of Marsh Africa, said, ”Uganda’s strong economic growth and rapid development, especially in the mining and energy sectors, increasingly requires companies to adopt more advanced risk management practices and insurance solutions to meet their particular requirements.”

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African Review of Business and Technology - July 2012

East Africa Irrigation Technology Week 2012

E

ast Africa Irrigation Technology Week is set to take place at the Kenyatta International Conference Centre from 9-13 July in Nairobi, Kenya. Organisers say that event is the largest exhibition and conference on irrigation technology and precision agriculture in East Africa.

As East African countries work towards improving food security, irrigation is becoming important in increasing the amount of land available for cropping. East Africa Irrigation Technology Week specialises in showcasing irrigation technology, including the emerging field of precision agriculture. The exhibition is predicted to attract exhibitors from Africa, the Middle East, Europe, Asia and the US and will be run concurrently with a technology conference and field visits to live irrigation technology installations.

www.irrigationweek.com

Irrigation has a proven potential to boost levels of agricultural productivity on the continent, as well as address the effects of climate change. Africa is, however, dramatically underserved in terms of irrigation. A 2009 research report by the International Food Policy Research Institute (IFPRI) states that African countries irrigate only about six per cent of their collective cropland, compared with a world average of 18 per cent. In sub-Saharan Africa, only four per cent of farmland is under irrigation.

East Africa Irrigation Technology Exhibition Week 2012 will showcase equipment and services from leading manufacturers and other service providers to the irrigation and precision agriculture sub-sector.

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NEWS

Agenda / South Mobile Money Africa returns South Africa is not only a competitive mobile money market, but is a good representation of the different business models that are being represented by banks, mobile network operators, third party operators, social media and online retailers and payment providers.

This is the opinion of Sonum Puri, programme director of Mobile Money Africa, which took place recently in Johannesburg.

The event is the largest annual industry gathering on the continent according to the organisers.

“The event provided the chance to show Mobile Money Africa marked a successful return to that the mobile money ecosystem can Johannesburg grow to encompass many new stakeholders in the marketplace, which means that people can take lots of examples from the South African market and apply them to their own businesses,” said Puri.

G4S targets regional growth One of the world’s largest security companies, G4S, has made clear their intention to expand and enhance their already significant operations in Africa.

Operating in more than 125 countries worldwide, 30 of which are in Africa, G4S has planned for its African business to undergo a double-digit growth over the next two years.

Also, during the following 12 months, the company intends to expand into three new countries in the continent.

G4S regional president for Africa Andy Baker was recently appointed to the role with the aim of monitoring a programme of aggressive

acquisitive growth across Africa. He noted that despite the already significant size and scale of G4S business in Africa, there are still many opportunities for greater expansion.

South Africa, G4S's biggest business in Africa, has given the group a good base to work from as it expands across the continent.

"We have a substantial business in South Africa and some of our other operations in Africa don't have the same type of scale,” said Baker. “By and large our quality is very comparable across the continent, but where we have centres of excellence in South Africa, we use that expertise to support the rest of the continent.”

South Africa central to BRICS forum South Africa’s status as a dominant regional logistics and infrastructure hub makes it an extremely viable gateway for trade into the rest of Africa according to the organiser of the inaugural BRICS Africa Export Import Forum.

The event will take place from 15-17 July at the Gallagher Convention Centre, Midrand, South Africa. BRICS member nations will form the backbone of the forum, an event designed to keep importers and exporters abreast of the constantly changing dynamics of international trade.

The three-day forum is designed to maximise multilateral trade activity and includes a programme of Intra-BRIC trade opportunity presentations as well as a series of educational workshops. It takes place alongside two major shows: Africa’s Big Seven Food and Beverage trade exhibition, and the Southern African International Trade Exhibition.

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African Review of Business and Technology - July 2012

SATH provides US$10mn to Dar es Salaam

T

he World Bank has agreed to provide US$10mn for project funding in 2012 to the Dar es Salaam Corridor Committee (DCC). The funds will be made available through the Southern Africa Trade Hub (SATH) over the next three to five years, according to a SATH spokesperson.

"In 2012, the World Bank accepted the assessments and project proposals, and agreed to provide US$5mn for capacity building at the DCC Secretariat as well as a further US$5mn for DCC programme implementation for the next three to five years," the spokesperson said.

The funding is expected to enable the DCC to improve the quality of logistics and support services along the corridor thereby reducing the costs of trade.

www.satradehub.org

The Dar es Salaam Corridor connects the Zambian Copperbelt to the Port of Dar es Salaam in Tanzania. It also carries significant cargo to and from the Democratic Republic of the Congo, Malawi and southern Tanzania. It forms part of the North-South Corridor which stretches from Cape Town to Tanzania and is a major artery used for the US Agency for International Development’s (USAID) Feed the Future initiative.

Transport costs on both rail and road along the corridor remain high due to factors such as the poor quality of transport infrastructure, ineffectiveness of customs authorities and management of agencies at border crossings, delays at the port and unnecessary road blocks and checks along the route.

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NEWS

Agenda / South FLSmidth and UMK sign CSI deal Global engineering company FLSmidth, JHDA Taggart and primary project sponsor United Manganese of Kalahari (UMK), have donated three feeding scheme kitchens to rural schools near UMK’s operations. The objective of the project was to establish kitchen facilities that make it possible for the more than 1,500 pupils in the three schools to be fed daily from facilities that ensure hygienic conditions for food preparation and allow staff to better execute their duties within a functional facility.

The project was managed by Gundo Engineering & Projects and the beneficiary schools in the Kuruman area of the Northern Cape were identified with the assistance of the Department of Education in the Northern Cape, Kgalagadi District office. They were Lehikeng Intermediary (450 pupils), Maruping Primary (740 pupils) and Mapoteng Primary school (366 pupils). A local BBBEE contractor was contracted to develop the three kitchens and local labour was employed.

The project forms part of UMK’s social responsibility initiative. The kitchen facilities have been designed to be self-sustaining, with minimal energy and water usage, ensuring the schools will have to carry the lowest possible cost for their upkeep.

Microsoft announces Office 365 deal with Comztek Microsoft has appointed local technology distributor Comztek as its first channel developer partner for cloud services in South Africa, ahead of the commercial launch of its Office 365 productivity suite.

Comztek will be tasked with developing a channel of partners who will promote Microsoft’s cloud services offerings to the marketplace and will offer a combination of sales and marketing support, training and technical assistance and product specialist experience of working with Microsoft solutions.

“This is an important step in building a strong partner eco-system across South Africa

to support the roll-out of Office 365,” said Microsoft’s distribution account manager, Leane Hannigan. “Although Office 365 is a direct service between an end-user and Microsoft, we see huge potential for partners to add layers of value and services on top of this basic offering, while being part of the revenue stream of Office 365 itself.”

Hannigan added that the Office 365 distribution model offers partners a chance to promote cloud services at no risk to themselves, while retaining a commission stream. Rival offerings work on a model where the partner becomes liable for the resell licence.

MTN Group launches transfer site MTN Group and MFS Africa have launched the online money transfer service, MTNMMO.com.

The launch means that MTN Mobile Money customers can now receive international remittances directly on their mobile phones. The service is now live for transfers to Rwanda and Côte d'Ivoire and will be rolled out across other MTN Mobile Money markets, including Benin, Cameroon and Ghana later this year. Senders can register on the website, www.MTNMMO.com, from anywhere in the world and remit funds by entering a beneficiary's mobile phone number.

Funds are then delivered immediately to the beneficiary’s MTN Mobile Money account.

While Mobile Money customers can already send and receive domestic remittances, the MTNMMO.com service opens up MTN Mobile Money to receive international remittances through a fully integrated and secure platform. The MTNMMO.com service is part MTN and MFS Africa’s drive to introduce simple and relevant financial services.

14

African Review of Business and Technology - July 2012

Zanzibar plans to construct new port

Z

anzibar has announced plans to build a new port at Mpiga Nduri in Ungunja to increase the island’s capacity to handle large ships and increased cargo. Malindi Port handles between 140,000 and 160,000 tonnes of general cargo annually and about 25,000 tonnes of liquid cargo, mainly petroleum and edible oils. The port is not currently able to dock more than three cargo ships at once and does not have enough container terminals.

The port handles over 90 per cent of Zanzibar’s trade but increased business, prompted by the expansion of the East African community, has led to demand for more cargo handling facilities across the ports in the Indian Ocean. Tanzania is planning to expand its ports at Dar es Salaam and Mtwara with plans underway to build new ones at Mwambani in Tanga and Mbengani in Bagamoyo.

Meanwhile, five foreign companies are looking to invest about US$150mn in Tanzania’s Export Processing Zones. The investors from China, India and Japan are in the process of getting licenses to start production. The firms will invest in petrochemicals, a slaughter house, a meat processing factory and in the assembling of motor vehicles for exports.

“We expect total sales of about US$11.24mn in the first year of production.

The five investors will bring the total of companies in the EPZ to 59 adding about US$710mn in investment”, said Lameck Borega, investment facilitation officer at the Export Processing Zones Authority (EPZA).

EPZ data shows that over US$700mn worth of investment has created 14,000 direct jobs and made US$450mn in exports since the zones became operational six years ago. EPZA turnover is collected from application fees, renewal fees, developer’s license fees, office rental fees and service charges. The lack of infrastructure for industrial production and power costs are hampering full development of the EPZs.

S04 ATR July 2012 Agenda 03_Layout 1 20/06/2012 14:50 Page 15

More local development creates far-reaching benefits.

At ExxonMobil, we are committed to helping support development and economic progress wherever we operate.

For example, in Chad, we’ve trained more than 300 small and medium-sized enterprises to assist in improving business and operating performance. And in Angola, we have spent over $1.3 billion with local companies since 2008.

So whether we are working with local suppliers or training Africans to work in our operations, ExxonMobil is developing more than oil and gas—we are helping to support Africa’s future.

Learn more about our work at exxonmobil.com

S04 ATR July 2012 Agenda 03_Layout 1 20/06/2012 14:50 Page 16

NEWS

Agenda / West Hershey reveals sustainability plans The Hershey Company has announced a plan to reinforce cocoa sustainability efforts by accelerating farmer and family development in West Africa, where 70 per cent of the world’s cocoa is grown. Over the next five years, Hershey will also expand and accelerate its programmes to improve cocoa communities by investing US$10mn in West Africa.

In 2012, Hershey will expand CocoaLink, a first-of-its kind farmer outreach programme that uses mobile voice and SMS text messages to connect cocoa farmers with important information about improving farming practices, farm safety, child labour, health, crop disease prevention, post-harvest production and crop marketing.

Hershey is also establishing the Hershey Learn to Grow farm programme in Ghana to provide local farmers with information on best practices in sustainable cocoa farming. For the first time, US consumers will also be able to purchase Hershey’s Bliss® products with 100 per cent cocoa from Rainforest Alliance Certified farms.

MTN heralds West Africa Cable System launch Six years after MTN committed over US$100mn into Africa's largest capacity submarine fibre-optic cable, the West Africa Cable System (WACS) has been commercially launched. The ultra high-capacity cable system links Western and Southern Africa to Europe.

The 17,200km fibre-optic submarine cable system will effectively raise South Africa's current broadband capacity by more than 500 Gigabits per second (Gbps). This will provide a much-needed boost to MTN in South Africa, where consumer data demand quadrupled during 2011 and data consumption (excluding SMS) rose by approximately 200 per cent yearon-year. During the same period, smartphone usage increased by 128 per cent to 3.6mn users, while data users soared to 10.9mn.

WACS spans the west coast of Africa, starting at Yzerfontein near Cape Town, South Africa and terminating in the UK. The system will enable MTN operations to enjoy seamless connectivity into the rest of Europe and the Americas. The four-fibre pair system was constructed at an approximate total project cost of US$650mn.

“MTN is the largest investor in WACS, with commitments in excess of US$100mn, comprising US$90mn system capital contribution and additional capital investments towards the construction of cable landing facilities in Cameroon, Ghana, Nigeria and Cote d'Ivoire,” said MTN's global carrier services' commercial relations lead for the WACS Consortium, Trevor Martins.

Nigeria’s software piracy rate static The commercial value of unlicensed software installed on personal computers in Nigeria reached US$251mn in 2011, with 82 per cent of software deployed on PCs during the year pirated. This rate remains unchanged from 2010 and stands at almost double the global piracy rate for PC software of 42 per cent. These are among the findings of the Business Software Alliance’s (BSA) 2011 Global Software Piracy Study, which evaluates the level of software piracy around the world. The report’s findings indicate that current efforts to address the significant negative impact of piracy on the Nigerian economy need to be continued and maximised. Since 2003, the piracy rates in the country have dropped a total of two per cent, down from 84 per cent in 2004.

The BSA confirmed that there are proven steps that governments around the world can take to effectively reduce software theft.

For more information, go to www.bsa.org/globalstudy

16

African Review of Business and Technology - July 2012

Airtel Chad and Ecobank launch Airtel Money

A

irtel Chad has collaborated with Ecobank to launch Airtel Money in the West African country. Touted as the first mobile commerce product in the country, the service will allow subscribers to carry out financial transactions on their mobile phones and enhance the delivery of financial services at affordable costs.

The launch ceremony of the new service was held at the Kempinski Hotel in the capital Ndjamena, in the presence of various dignitaries, including the prime minister Emmanuel Nadingar, telecommunications minister Alingue Jean Bawoyeu, and members of Chad’s diplomatic corps.

In many developing regions, including Africa, the availability of formal financial services is severely limited and only informal, expensive and unreliable channels are the only way in which to carry out transactions. Recent studies have suggested that the total value of mobile money transfers in Africa is expected to exceed US$200bn in 2015 due to the growing confidence of users in the system, coupled with the wide range of services on offer.

Major players in the market, especially banks and mobile operators, have expressed an interest to fill this much needed gap. Airtel has been rolling out its m commerce service across Africa to current and potential customers, enabling various modes of financial transactions on mobile phones.

Transactions will be very simple and completely secure. All the customer needs is a mobile phone and a personal password whenever they want to complete a transaction. A simple registration is sufficient to use the service. The client must be an Airtel subscriber, have a valid identification document and fill out a registration form.

Airtel Money will be available in all areas covered by the Airtel network.

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NEWS

Agenda / West Cape Verde ‘reinforces positive image’ According to the 2012 Doing Cape Verde (image source: IDS.Photos) Business Report, published by the World Bank Group, Cape Verde has made an enormous contribution to the positive image of West Africa over recent years. This is largely due to strong growth in the islands’ tourism sector. Specialist Cape Verde property agents, Feltrim International, have been keeping a close eye on the destination’s progress.

“In 2011 in excess of 475,000 tourists visited Cape Verde, only about 100,000 shy of its native population, and by 2015 one million arrivals are envisaged,” said managing director of Feltrim International, Adam Cornwell.”

The Doing Business Report credited Cape Verde with reinforcing a positive image by adding a dynamic to the tourism sector and sparking strong growth.

Logistics West Africa 2012 exhibition announced

T

he second Logistics West Africa strategic conference and exhibition will take place at the Eko International Expo Centre on Victoria Island, Lagos, Nigeria, on November 5-7, 2012.

“Logistics West Africa is a platform for sharing innovative solutions and practices so companies can improve logistics, save time, save money and increase their profit. Therefore, encouraging West African companies to be more competitive and grow in the vibrant West African regional marketplace,” said the event’s producer, Natalie Bacon.

Logistics West Africa is a platform for sharing innovative solutions and practices so companies can improve logistics, save time, save money and increase their profit Logistics West Africa has been designed as a unique panregional event to bring together senior supply chain decision makers from across the region to debate challenges and discuss and share their experiences of their logistics supply chain in West Africa.

Valentine Rugwabiza, deputy director-general of the World Trade Organisation (WTO) recently commented that it remains costly to trade with another African country. West African countries therefore trade with international partners who are usually further away, but are more competitive.

The Logistics West Africa Strategic Summit and Exhibition will bring together the major industry stakeholders from oil and gas, manufacturing, fast-moving consumer goods, construction, pharmaceuticals, mining and agriculture with pan-West African trade bodies, government ministries and solution providers. The summit will highlight and identify some of the major logistical challenges in the region and focus on implementing the solutions needed by private industry for business to excel. By improving all aspects of logistics in the region the event aims to keep West Africa moving and emerging as one of the world’s largest regional trade hubs.

The strategic two-day conference will provide the ideal opportunity for discussion forums to solve topical industry challenges and fast track understanding of how to improve logistics supply chain management.

For more information on Logistics West Africa please visit: www.cwc-logistics.com

18

African Review of Business and Technology - July 2012

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NEWS

Events / 2012 August

September October

15-16

6-7

3-7

Accra, Ghana www.aitecafrica.com

Durban, South Africa www.transportevents.com

Khatoum, Sudan www.sudanbuild.com

15-18

18-19

17-20

Johannesburg, South Africa www.ecoafribuild.co.za

Lagos, Nigeria nigeria.comworldseries.com

Casablanca, Morocco www.elec-expo.com

15-18

18-20

23-25

Johannesburg, South Africa www.interbuildafrica.co.za

Abuja, Nigeria www.power-nigeria.com

Johannesburg, South Africa www.africaelectricity.com

22-24

19-20

24-25

Johannesburg, South Africa www.signafricaexpo.com

Maputo, Mozambique www.aitecafrica.com

Brussels, Belgium www.aid-expo.com

AITEC West Africa ICT Summit

EcoAfribuild

InterBuild Africa

Sign Africa

Intermodal Africa

Sudan Build

Nigeria Com

elec expo & EneR

Power Nigeria

Africa Electricity

AITEC Mozambique ICT Congress

AidEx

Reporting on the state of Africa's risk profile An African Trade Insurance Agency (ATI) report, titled The State of Africa’s Risk Profile, and based on discussions held during ATI’s third annual Roundtable on the Impact of Political and Trade Credit Risks on Africa’s Trade and Investments, highlights the importance of addressing the concerns of a surging youth population, which now places Africa as one of the youngest continents on the planet.

Convened by ATI, the event is a platform for African countries to begin managing and creating a more accurate risk profile that better reflects the progress and development found in many African countries.

The ATI Roundtable panel, seated from L-R; Martin Schmerbach, Economic Research, Euler Hermes Kreditversicherungs-AG; Anne Aliker, Head of Investment Banking, CFC Stanbic Bank; Felix Adahi Bikpo, Chief Executive Officer, African Guarantee Fund

20

African Review of Business and Technology - July 2012

Adding his voice to the high-level participants quoted in the report, Peter Kenneth, Kenya’s Assistant Minister of Planning, National Development and Vision 2030, reflected on the role of African leaders in improving the current business climate - “In a word, the political risks of the past have largely subsided. Furthermore, there is clear evidence that African leaders and regional institutions intend to keep things that way.”

He went on to cite as an example of Africa’s commitment to stability, the political successions in Malawi and Senegal, and the recent coup d’état in Mali, where ECOWAS countries moved fast to impose sanctions that eventually forced the army to retreat.

During the all-day forum, expert panels discussed the impact of the shifting demographics, on Africa’s risk profile in addition to two other key issues: The impact and potential of economic, political and social contagion from the Arab Spring in Sub-Saharan Africa (SSA); and The impact of the Euro zone crisis on economies in Sub-Saharan Africa (SSA). The findings and recommendations from these Peter Kenneth, Kenya’s Assistant deliberations were captured in the Minister of Planning, National final report.

Development and Vision 2030

S05 ATR July 2012 Bulletin_Layout 1 21/06/2012 11:14 Page 21

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NEWS

Bulletin / Development Seeking inventions to make a difference to development

Cooperation System (JICS) - to promote the

urging states to ensure sustainable land

utilisation of solar energy as an alternate and

management, Ban Ki-moon said, “Important

An Aid Innovation Challenge forms part of

renewable energy resource and to undertake

land-use decisions need to be made, as well

the annual AidEx event (www.aid-

measures against climate change.

as critical investments ranging from extension

expo.com) which serves as a platform for

services for small farmers to the latest

professionals to facilitate improvements in

Social entrepreneurs seek funds to deliver clean energy access

the delivery of humanitarian aid, taking

20 off-grid clean energy entrepreneurs have

place in Brussels, Belgium, on 24-25

sent a letter to World Bank Group president

October 2012; Nicholas Rutherford, AidEx

Robert Zoellick requesting US$500mn in

Website tracks commitments to Millennium Development Goals

Event Director, said, “We want to hear from

financial commitments to help them deliver

A website has been launched to track

people with cutting-edge inventions that

on the world’s energy access goals; the letter

progress on financial and policy

will boost the delivery of aid in areas such

states in part, “We work in these markets and

commitments made at international forums

as medical care, water, sanitation, food,

we know they suffer from, among other

and elsewhere towards the achievement of

security or shelter.”

things, a distinct lack of access to finance” -

the Millennium Development Goals (MDGs);

humanitarian and development aid

technology to support environmentally sustainable mass food production.”

and goes on to argue that a significant

Helping the Maldive Islands meet renewable energy goals

investment in the sector from the World Bank Group can reduce perceived risk and unlock private sector investment, and along with it the vast potential of clean energy to serve the world’s poor.

How Eight19 is now working Global LEAP Active supporters of the United Nation’s Sustainable Energy for All initiative launched in 2012, Eight19 has joined the Global Lighting and Energy Access Partnership (Global LEAP), a senior forum that brings together governments, the private sector and development partners to share knowledge

iif.un.org

and best practices under a set of commonly

the website, http://iif.un.org, known as the

held principles to encourage self-sustaining

Integrated Implementation Framework (IIF),

commercial markets for energy access

is an interactive web portal that will provide

Kyocera Corporation, Toyota Tsusho

solutions; as a member, Eight19 shares the

an overview of all international

Corporation and Wakachiku Construction Co.,

commitment of the Global LEAP principles to

commitments made in direct support of the

Ltd. are working to install 675kW of Kyocera's

accelerate self-sustaining commercial markets

MDGs since 2000, providing information on

solar power generating systems at schools

for energy access solutions.

the nature of these commitments, tracking

100kW Kyocera solar power generating system at the Maldives Center for Social Education

their delivery, signalling prevailing gaps,

and other public facilities in the island nation

States urged to ensure sustainable land management

demonstrating inconsistencies and

Clean Energy Promotion in Malé is being funded by the Japanese government's Official

“Without healthy soil, life on Earth is

provided and the support that is required for

Development Assistance (ODA) - provided

unsustainable,” said UN Secretary-General Ban

achieving the MDGs, enhancing

through the Japan International Cooperation

Ki-moon on the World Day to Combat

accountability and helping make the global

Agency (JICA) and the Japan International

Desertification, observed 17 June 2012;

partnership more effective.

of the Republic of Maldives; the Project for

22

African Review of Business and Technology - July 2012

identifying gaps between the support

S05 ATR July 2012 Bulletin_Layout 1 21/06/2012 11:14 Page 23

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S05 ATR July 2012 Bulletin_Layout 1 21/06/2012 11:14 Page 24

NEWS

Bulletin / Energy Remote microgrids to help meet energy demand

facility for its utility-scale solar inverters and

Demand for energy, especially electricity, is

control solutions; the factory, which is based

growing much more rapidly in Africa than the

in Montague Park in Milnerton, just outside of

rate of expansion of conventional electricity

Cape Town, has the capacity to produce at

grids in the major industrialised world, and -

least 200 MW per annum.

skytron combiner boxes for its monitoring and

according to a report titled ‘Remote microgrids are ideally suited to help meet this

Advanced data collection in Algeria

surging appetite for more power, without

Itron, Inc. has signed a contract with ENAMC -

increasing carbon emissions; a widening

a subsidiary of Sonelgaz, Algeria’s national

recognition of the contribution renewable

electricity and gas company - to deploy the

energy makes to rural development, lower

large-scale, C&I advanced data collection

health costs (linked to air pollution), energy

system to support the modernisation of the

independence, and climate change

nation’s electricity network and enable

mitigation is shifting renewable energy from

commercial and industrial clients to improve

the fringe to the mainstream of sustainable

management of their electricity

economics - remote microgrids can serve as

consumption; ENAMC will use Itron smart

the anchors of new, appropriate scale

metering technology at 58 distribution

infrastructure, a shift to smarter ways to

centres across the country, and each centre

deliver humanitarian services to the poor,”

will be equipped with the IT servers required

says senior analyst Peter Asmus.

to run Itron’s data collection system.

Investing in solar equipment manufacturing

Firms work to meet Nigerian power demands

Energy technology and power electronics

Wood Group GTS has secured a contract with

specialist AEG Power Solutions has made a

Leventis Overseas Limited for the supply of

significant investment in South Africa with the

three refurbished Nomad 5 power packages

construction of a premium manufacturing

for use in Nigeria; the contract, which has a

Microgrids’ from Pike Research - remote

The age of this motor was contributing to high maintenance, frequent failures and associated repair costs at the mine.

One of three purpose manufactured motors which Marthinusen & Coutts built for Katanga Mining.

value in excess of US$3mn, involves procurement and refurbishment of each power pack, encompassing overhaul of the TB5000 gas turbines, testing of auxiliary equipment and installation of modern PLC-

This 2210 kW purpose manufactured motor includes several design changes to ensure optimum performance.

based control systems to ensure reliable operation in service, follows previous contracts

Marthinusen & Coutts at Katanga Mine in the

for the supply of equipment and maintenance

DRC - the third purpose-built motor

services to Leventis, and will help to meet

manufactured by Marthinusen & Coutts for

demand for additional power at two of their

installation at this mine, the other two being

glass bottle manufacturing plants in Nigeria.

1750HP motors driving mills; Henk de Swardt, engineering director at Marthinusen & Coutts,

Trevor De Vries, Managing Director of 3WPower/ AEG Power Solutions in South Africa, in the new facility

24

Replacing motors at DRC copper mine

says that one of the major challenges was

A purpose-manufactured 2,210kW motor has

load that these motors drive, as “both motors

been installed and commissioned by

were estimated to be more than 40 years old”.

African Review of Business and Technology - July 2012

coping with the lack of information about the

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NEWS

Bulletin / Trade Value-added events to enhance AB7 & SAITEX expos

Irshaad Moidheen, a Senior Associate in the Commercial Department at Garlicke & Bousfield Inc

Two of South Africa’s biggest trade events taking place 15-17 July - Africa’s Big Seven (AB7) and the Southern African International Trade Exhibition (SAITEX) benefit from the inclusion of the inaugural Retail Solutions Africa Conference and the On-line Retailing Conference at AB7, and the ‘Future of Trade Africa 2012’ at SAITEX; organised by Exhibition Management Services (www.exhibitionsafrica.com), Africa’s Big Seven is the biggest food and

The South African International Trade Exhibition and Africa's Big Seven exhibitions are powerful gateways to African trade

against the counterfeiters - and, with

explores the critical uncertainties

counterfeiting defined as the manufacturing,

underlying the future international roles of

producing or making, without the authority of

the euro, the dollar and the yuan – the

the owner, of any intellectual property right

world's three major currencies – and posits

subsisting in the Republic, whether in the

three scenarios for the international

beverage trade exhibition on the African

Republic or elsewhere, of any goods whereby

monetary system in 2030 based on policy

continent, covering the entire gamut of the

those protected goods are imitated in such a

choices in each currency area.

food and beverage business, from farm to

manner, and to such an extent, that those

shelf and everything in between, whereas

goods are substantially identical copies of the

SAITEX is a full-spectrum trade show with

protected goods; the Act’s scope is wide

Food trade grows between the Middle East and Africa

product categories from A to Z.

enough to encapsulate a direct infringement

“Africa is becoming a major new emerging

of a protected good as well as a confusingly

market to the rest of the world due to its

similar imitation of the protected goods.

strong economic growth and rapidly

Acting to curb fake goods trade South Africa has implemented The Counterfeit

expanding population of middle class

Report indicates monetary stability as key to growth

consumers,” declares John Thomson,

to stem the tide of goods being counterfeited, enabling the owners of intellectual property

A World Economic Forum report examines

Management Services, organiser of Africa’s

to take action against infringers copying their

key challenges for the euro, dollar and yuan

Big Seven (AB7), which this year includes

intellectual property and to institute civil and

and their implications for global growth,

the DHL BRICS Africa Export Import Forum,

criminal proceedings against the

investment and business environments,

development briefing dedicated to

counterfeiters; according to Chris de Beer, a

indicating that international monetary

showcasing the range of services and

director at Garlicke & Bousfield Inc, and

stability is at risk due to uncertain future

support available for BRICS intra-Africa

Irshaad Moidheen, a Senior Associate in the

international roles of these currencies, while

trade; “The 15 member states of the

Commercial Department at Garlicke &

policy choices within each currency area

Southern African Development Community

Bousfield Inc, the CGA enables the owners of

could radically alter global patterns of trade

(SADC) have a population of 257mn people

intellectual property to take action against

and capital movement; ‘The full Euro, Dollar,

and they buy US$11bn in food imports

infringers copying their intellectual property

Yuan Uncertainties: Scenarios on the Future

every year,” adds Saed Al Awadi, Chief

and to institute civil and criminal proceedings

of the International Monetary System’ report

Executive Officer of Dubai Exports.

Goods Act, No 37 of 1997 (“the CGA”) in order

26

African Review of Business and Technology - July 2012

Managing Director of Exhibition

S05 ATR July 2012 Bulletin_Layout 1 21/06/2012 11:14 Page 27

NEWS

Bulletin / Technology gaming, delivering a premium high-

Media and technology leaders gather to discuss the future

Microsoft seeks to establish its position in the tablet space

definition entertainment experience; with

Ahead of Rio+20, the United Nations

With its plans for the ‘Surface’ range of mobile

market FasTrack technology that instantly

Conference on Sustainable Development,

tablets, to be released later this year.,

detects entertainment traffic on the network

Rio+Social catalysed an online conversation

Microsoft brings innovations to the tablet

among corporate and digital media leaders,

market, including an interesting “touch”

civil society, celebrities and government

keyboard; Frost & Sullivan Analyst Craig

representatives to share solutions for pressing

Cartier comments, “With the might (and

global challenges such as access to energy,

investment potential) of Microsoft behind its

affordable health care, a clean and safe

efforts in the tablet space, Microsoft can

environment, and education; the United

certainly carve out a niche in the tablet

Nations Foundation, Mashable, 92nd Street Y,

market, but current trends suggest this is not

Ericsson, Energias de Portugal (EDP), LiveAD,

a place they will reach quickly or easily.”

the My Net family of products, WD brings to

Microsoft has long pursued a stronger position in the mobile industry

Planeta Sustentável, Virgin Unite and United all walks of life and countries around the

A new era of high definition entertainment

and fast-forwards it to gaming consoles,

world both in person and online through

Western Digital has unveiled a line of wireless

media players, smart TVs, tablets,

Rio+Social - a global event on the nexus of

home networking products, designed

smartphones, computers and other Wi-Fi

social media, technology and sustainability.

specifically to accelerate movies, video and

connected devices.

Postcode Lotteries convened individuals from

African Review of Business and Technology - July 2012

27

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NEWS

Bulletin / Technology Research firm expands across Nigeria and Kenya

Atlas Copco's underground 'app'

As part of a planned geographical expansion, 3M is setting up subsidiaries in Nigeria and Kenya while deploying expert front end human resources to manage key market segments and end users in the West and East African countries - with the Kenyan

The app is available from the Apple App Store and from Google Play

operations encompassing neighboring countries including Tanzania, Uganda and

With the growing use of smart phones, tablets

Ethiopia; commenting on 3M MEA’s

and other hand-held devices, Atlas Copco has

expansion across Africa, Irfan Malik, Area Vice

developed application ('app') technology to

President 3M Middle East & Africa, said, “3M

Irfan Malik, Area Vice President, 3M Middle East & Africa

expansion across new geographies in Africa

give its customers quick and easy access to information, beginning with the company’s

is driven by our underlying strategy to

Underground Rock Excavation division; by

enhance our penetration in emerging

downloading its app free of charge, users can get extensive access to the company’s wide

markets by increasing customer relevance with the aid of our proven global technology

industries that are expected to grow multi

range of underground face drilling rigs,

platforms and prioritising focus on key

fold in the coming years.”

loaders, trucks and other equipment.

28

African Review of Business and Technology - July 2012

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Commerce

GHANA

Supporting work with photovoltaic systems Ashden Award winner Deng continues to commit to improvement of PV training and the provision of reliable PV services

G

rid electricity is not available in many rural areas of Ghana, and even where the grid exists the supply is unreliable because generating capacity is inadequate. Deng supplies standalone photovoltaic (PV) systems in rural areas for lighting and appliances in homes, schools and healthcare centres, and grid-backup PV systems around Accra.

A critical solution for solar power A reliable power supply is critical for businesses. But it’s also vital for education and health. Children cannot learn and health centres cannot heal without good light and power. In Ghana, 40 per cent of the population aren’t connected to the mains power supply, and it is not reliable even for those who are.

Deng’s solution is solar power. The company sells a range of photovoltaic (PV) systems, starting with a standalone version for the home costing US$500 and larger versions for schools and hospitals costing up to US$1,500. Customers pay in installments and are immediately saving on the kerosene they used previously.

The success of the work depended on more than design and manufacture. As so often, it is the human infrastructure that is vital.

The systems are only so good as there are local people to promote, install and maintain them. So Deng set up a training centre for both designers and installers.

More children can read at home and in schools and more reliable local health centres reduce the need for people to travel long distances for medical support. And it isn’t just the young who benefit.

An 84 year-old retired driver from Nkhoranza, Mr Kwasi Affa, has said of the benefits of the solar lighting, “I like having the light to read in the evenings – there are so many books that I want to read.”

Social benefits Education has benefited from the use of solar PV lighting in Ghana.

Children have good quality dependable light at home so they can study in the evening. Both adults and children are making use of hundreds of schools that have been equipped with 80 Wp PV systems so that they can remain open in the evening for classes and homework sessions.

Deng dealer Arthur Manu stands outside his shop in Nkhoranza, Ghana

African Review of Business and Technology - July 2012

29

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GHANA

Commerce

I have a cousin and his children used to run up enormous electricity bills when he was away from home so I suggested that he bought a PV system instead. Now they can only use the lights for a few hours each evening, and they cannot run up bills.�

A sign advertises Deng dealer Arthur Manu's services in Nkhoranza

Healthcare also benefits, through the provision of lanterns to traditional birth attendants, and also through PV systems in hospitals and clinics. These are used for lighting, but also for refrigeration of vaccines and insulin, and for providing a reliable water supply. Improving the lighting and facilities in rural clinics is making healthcare more accessible for people, as they no longer have to travel into town for treatment. PV systems in health centres are no use if they break down, and Deng has supported the installation programme by running courses for health service technicians at the training centre.

Economic and employment benefits The PV work of Deng has directly provided employment to about 11 people, including technicians at Deng head office and the Deng dealers. The dealers supply PV systems and two of them run battery charging stations as well. A 200 W system can charge four batteries per day, to bring in a daily income estimated to repay the capital cost of the system in about three years. This forms a good basis on which to grow a PV installation business. The use of PV for lighting has extended working hours for shops and other small businesses.

In the commercial arena, businesses and public organisations using solar PV for grid backup can continue working during power cuts and voltage variations.

Although more expensive, PV is preferred to diesel generators for back-up power because it is silent.

- Mr Kwasi Affa, retired driver, Nkhoranza

in the more remote parts of the country, and Deng is growing its network of dealers in these areas. Founded by Deng in 2005 but now operating as a separate company, the Deng Solar Training Centre (DSTC Ltd) provides solar PV training and general business training to dealers, as well as basic community awareness training, and has developed a chain of trained solar dealers covering rural districts under the auspices of a World Bank-funded solar project. The training itself covers the installation and maintenance of solar PV, to ensure good quality systems and service.

DSTC was established in technical collaboration with: Global Sustainable Energy Solutions (GSES) of Australia, and the Department of Mechanical Engineering and Agriculture of Kwame Nkrumah University of Science and Technology (KNUST) in Kumasi.

Initial co-financing was secured from Deutsche Investitions-und

Training for growth The continued lack of adequate grid capacity in Ghana will probably result in sustained demand for solar PV equipment. The people who would benefit most from PV services are

30

African Review of Business and Technology - July 2012

A class at the Deng Solar Training Centre

Entwicklungsgesellschaft mbH Germany (DEG).

DSTC’s training is available to all stakeholders within the solar industry, including private companies and individuals, Government institutions, NGOs as well as to students from the KNUST and the Polytechnics. The sustainability of the Training Centre has been ensured by the Master Trainer who has simultaneously trained three local trainers to be responsible for the training programme.

Technical training consists of both class room courses and practical training, which includes a demo installation. The courses end with an examination after which Certificates are issued to successful students in three categories: pass; pass with credit; and pass with distinction.

Under the training programme, DSTC organises Solar Awareness Workshops at selected Rural Townships. â–

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FINANCE

Investment

How access to funds aids growth African financial experts affirm that remittances can support the adoption of social inclusion

L

eading figures from Africa’s financial services industry, including those from the African Development Bank (AfDB), believe remittances can play a crucial role in fostering social development and increasing financial stability in developing countries.

AfDB hosted a conference in Arusha, Tanzania, in May 2012 to discuss how efficient financial markets and access to finance can aid economic development. Speakers at the conference - a side event held during the 2012 Annual Meetings of the Boards of Governors of the African Development Bank Group - included Agnes Soucat, Director, African Development Bank and Abdirashid Duale, CEO of Dahabshiil.

Speaking at the event, Mr Duale praised the significant progress being made to improve access to finance and aid economic growth in developing countries. He stressed the comparative stability of large areas of the Somali territories - citing growth in businesses and industries as well as improved education and employment prospects.

Discussing the role of microfinance in combating poverty, he acknowledged its early promise, stating the growth of a formal financial infrastructure will enable sustainable financial products to be developed to meet the needs of poor communities most effectively.

An international agenda for inclusion Abdirashid Duale said, “Financial inclusion is increasingly on the international agenda for policymakers.

“Significant steps are being taken and the new regulatory frameworks currently evolving will ensure even greater efficiency in resource mobilisation for both inward and domestic investment. Microfinance initiatives and institutions are already enabling some of Africa’s poorest to plan for the future and to be more resilient to economic, political and climatic shocks.”

32

Abdirashid Duale, CEO of Dahabshiil

Agnes Soucat said, “Access to finance is a key component of our new Human Capital Development Strategy. Increasing opportunities for the poor and marginalized and particularly for the African youth - is crucial in order to ensure social inclusion as well as job creating growth. Companies such as Dahabshiil provide a vital service by facilitating the transfer of remittances to often excluded communities.”

The economic crisis did not have as heavy an impact on African countries as it did on their global counterparts. Many of Africa’s 48 economies are recovering at a faster rate than the rest of the world, with 4.5 per cent growth expected this year, and 4.8 per cent growth projected for 2013 according to a report drawn up by AfDB, the Organisation for Economic Cooperation and Development

African Review of Business and Technology - July 2012

(OECD), the United Nations' Economic Commission for Africa (ECA) and the UN development agency (UNDP). In addition, Africa is increasingly attracting investment opportunities as a result of improved management of public finances.

Africa’s recent surge can be traced to a range of factors including remittances sent back to Africa from migrant workers. Funds remitted to Africa by its global diaspora play an important role in national economies, providing a supplementary source of income which boosts private sector growth.

Dahabshiil sends approximately $1bn back to Africa every year, and is the largest of the international payments firms established in Africa.

Globally, money sent home by migrants constitutes the second largest financial inflow to developing countries - a vital source of income that outweighs donor aid. Remittance income is particularly important for communities in more remote regions of Africa, and helps to bolster the funding of humanitarian organisations operating in those locations.

Mr Duale added, “Africa’s diaspora sends around $40bn back home annually, and remittances are an essential lifeline for many communities across the continent. There is no doubt that this inflow has been an important factor in Africa’s economic development.”

Handling international money transfers of under $200 on average, Dahabshiil is in effect a provider of micro-remittances. Remittances are acknowledged to be an indispensable source of income for developing countries around the world, fuelling long term growth through sustained investment. Initiatives to improve access to finance for poor communities are increasingly at the forefront of international policy, and Dahabshiil is now looking to partner with leading international NGOs - to expand its offer to include other microfinance products. ■

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FINANCE

Investment

Offering capital for development Could local private equity funds be the key to increasing investment across the continent?

W

hen Anesu Machaba launched private pan-African investment firm, Elah Capital, she hoped to inspire business innovation, and contribute to the economic and social development of Africa.

Today, her firm focuses on investments in mining, real estate, construction and agribusiness. They also act as an advisor to governments for developing economic turnaround plans and SMEs (Small and Medium Enterprises), managing resources, and raising FDIs. The firm is currently looking to raise a pan-African fund focusing on hotels and commercial real estate.

Anesu says that the inspiration for her company’s name came from the ‘Valley of Elah’ where, according to Biblical history, David slew Goliath. For Elah Capital which has had to battle many odds, the analogy resonates strongly.

“We’re the new kid on the block,” says Anesu.

“We work with very few resources compared to the bigger investors, including international firms. And being an African company, we’re often seen as the lesser of the two players.”

In a sense, Elah Capital’s story – and by association, the David-Goliath story – is Africa’s story. Like David, Africa was once perceived as weaker and ‘lesser’ than other economies. But today, it is rapidly overtaking the Goliaths of the developed world to become one of the fastest growing economies and most preferred investment destinations.

Spotlight: Africa With 60 per cent of the world’s arable land, 15 per cent of its population, 10 per cent of its oil reserves and 40 per cent of its gold, Africa offers tremendous investment potential. Its political stability and regulatory laws, which had previously deterred investors, have significantly improved. Meanwhile, the continent’s burgeoning middle class and increasing income have spurred interest in consumer-facing businesses. McKinsey estimates that by 2020, Africa’s consumer

34

Anesu Machaba, Executive Chairman at Elah Capital

spending will be US$1.4 trillion.

The continent’s economy is also flourishing.

GDP growth in sub-Saharan Africa is expected to average 5.6 per cent in 2013 – significantly higher than the 2.4 per cent expected in the US and 1.1 per cent expected in the Euro Area.

In fact countries like Nigeria and Angola are projected to exceed seven per cent GDP growth. These prospects make Africa extremely attractive to investors.

Prime investment regions and sectors South Africa is by far the most investmentfriendly country given its extensive development and multiple investment opportunities. But other African countries are fast catching up. Kenya, for instance, offers a highly entrepreneurial environment with welldeveloped and efficient regulatory and support systems. Nigeria, with its large population, offers a good consumer market while Botswana has a limited population but is rich in natural resources. Egypt and Tunisia are also on investors’ radars. But the country to really watch out for is Ghana which emerged as the world’s fastest growing economy in

African Review of Business and Technology - July 2012

2011, buoyed by vast oil reserves and good government policies.

From a sector-perspective, mining attracts some of the most substantial investments as Africa produces several of the world’s most important minerals and metals, including Gold, Diamonds, Uranium, Chromium, Nickel, Bauxite and Cobalt.

Agribusiness is another important investment area – and for good reason. In a continent with large swathes of arable land, a good climate and plenty of skilled labour, agribusiness offers the potential to not only boost the country’s GDP but raise millions of Africans out of poverty.

Significant investment potential is also available in the real estate and construction sectors, especially in hotels, shopping malls and tourist facilities (thanks to the rise in African tourism), and middle and low income housing. In Kenya, an ambitious $5bn project is under way to construct a new city (Tatu City) outside Nairobi that will house 62,000 people over 2,500 acres. Airports, roads, railways, communication networks and other infrastructure are also under construction. It is estimated that nearly $500bn is needed over the next decade to meet the continent’s infrastructure needs. ■

Why private equity investments matter Clearly, African governments alone cannot shoulder the colossal investments needed by the continent. One way of overcoming this challenge is to encourage Private Equity (PE) investors who can offer substantial capital for development, improve employment and help stimulate emerging markets. Considering that PE firms are focused on creating better exit values, they will help ensure good business governance. All these factors are critical in increasing economic growth and reducing poverty.

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FINANCE

Banking

How Botswanan financiers improved IT Initiatives in the application of information technology at FNB Botswana, with support for training and process development from Marval SA

F

irst National Bank (FNB) Botswana is one of the leading financial institutions in the country and is part of the prominent First National Bank group. As a financial entity that operates across countries and continents, the company needs to comply with a multitude of regulations and governance practices both locally and internationally. In an effort to improve IT governance and align with the principles of IT, FNB Botswana called upon Marval South Africa to assist with training and ITIL process development.

Since a large proportion of FNB’s business relies on the availability of IT infrastructure and service, downtime can be costly in terms of the impact on the bank’s customers and the loss of income it incurs.

“IT Service Management is an important aspect of our business, and we are moving towards a more proactive approach when it comes to assisting our customers. In order to do this, we needed to gain an in depth understanding of the environment and everything this IT environment entails,” says Gaogakwe Mokobi, Head of the Technology Services Division at FNB Botswana.

“Our biggest challenge was the unstructured and very reactive nature of our IT environment to faults that occur. Problem resolution was slow, which ultimately ended up causing downtime and loss of productivity and income. We realised that managing this

more effectively would improve efficiencies as well as profitability, so we embarked upon ITIL training. We then engaged the services of Marval South Africa to assess our environment and assist the team with development of processes in line with the best practice guidelines outlined by ITIL,” he adds.

Achieving an understanding, to set policy After an initial assessment of FNB’s environment, Marval SA recommended changes, which were implemented over the following six months. Training was conducted with key FNB staff members on ITIL Foundation, and the team from Marval worked closely with FNB to define ITIL processes specific to the banking organisation. Process owners were trained and coached on their roles and responsibilities, inputs and outputs to ensure their understanding and buy-in, and a session was held for collaboration between the process owners to enable them to share knowledge and gain a broader understanding of the new processes across the board.

“With Marval’s help we established a policy that documents and guides risk and change management within our IT department.

Documenting processes is critical for audit purposes, and ITIL has been instrumental in assisting us in this regard. We have already realised the benefits of this with improved

problem management and change management, and as this is an on-going project we expect to realise more benefits in the future,” Mokobi says.

By implementing the appropriate ITIL practices in line with bank processes, FNB Botswana will not only be able to more easily comply with legislation and governance, the bank will also ensure that processes are put into place to quickly address IT faults and failures, improving turnaround time for problem resolution. They will also be able to benefit from improved efficiency and controls around risk management, continuity and continual improvement of IT service delivery.

“Skills transfer is also an important part of the coaching and IT Service Management optimisation programme. This ensures that continual service improvement can take place independently of a consultant. As a result, emphasis is placed on training and providing on-going support as changes and improvements take place,” says Edward Carbutt, Executive Director at Marval South Africa.

“As part of our scope, we helped FNB Botswana not only to adopt and implement the appropriate ITIL processes for their business, but also to do this in an ISO 200000 compliant manner. This will stand the company in good stead should they wish to achieve this formal ISO accreditation in the future,” he concludes. ■

Ecobank Zambia launches mobile money Ecobank Zambia has launched a mobile money product in partnership with telecommunciations firm Airtel, with a view to bring unbanked citizens into the formal banking sector. According to the financial institution’s managing director Charity Lumpa, the bank is committed to keeping with the pace of the rapid technological changes affecting its

36

African Review of Business and Technology - July 2012

business and clients in ensuring that it satisfied its customers’ needs.

“Our goal is to use these emerging technologies to not only deliver unprecedented levels of convenience, security and value for money for our customers but to also ensure the active inclusion of the non-banked and underbanked citizens of Zambia to the formal

banking system,” Lumpa enthused. Lusaka Province permanent secretary Stephen Mwansa has said the launch of the Ecobank mobile money will ensure that the bank provides an efficient and costeffective banking and alternative payment channel that is accessible and convenient.

Nawa Mutumweno

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FINANCE

Banking

Terminal technologies for financial inclusion Observations on the use of satellite-based Internet connections to utilise core financial services

A

lthough it still has far to go, deployment of information and communication technologies across Sub-Saharan Africa has moved significantly forward over the past decade. There has been rapid expansion of mobile communications networks and the markets these serve following liberalisation and deregulation in key African nations. Mobile network operators such as Zain, Safaricom, Vodacom and MTN, for example, dominate various African markets, mostly through growth in pre-paid connections.

Whilst growth has been impressive in all regions of Africa, it is much more common for people in urban areas in to have a mobile phone, much less so for people in rural areas. If rural people reside in an area with network coverage and can afford a phone, he or she may have one - but it may be more likely that he or she has access to someone else’s phone, and hence has a shared phone arrangement, with or without an individual subscriber card, also known as a subscriber identity module (SIM). It is on these mobile networks that mobile banking (m-banking) services can serve most effectively - connecting communities to financial institutions remotely, constituting the bridge that many donors now put their hope to.

Connecting services with satellite technology M-banking services can have a real developmental impact, bringing financial services to unbanked people. There is no question that these services are needed, demanded, supplied and used. There are, however, still many rural areas that have never benefitted from any terrestrial-based mobile services, and not even any type of fixed connectivity or electricity grids. These areas remain outside of service coverage, out of reach of telecommunications companies, utilities, and banks. For people

38

Satellite connectivity can bring financial inclusion, transforming communities such as this in Ghana (IICD)

in these areas, the only available connectivity solutions utilise satellite technologies - such as very small aperture terminals (VSATs), which are, basically, twoway satellite ground stations with dishes of less than three-metres in diameter.

Such technologies, of course, are not within the financial means of most people but they are becoming increasingly affordable - and it is understood that their common availability can be made reality with public or private sector stakeholder support. The case for wider adoption of VSATs is particularly appealing. VSATs are used to transmit data such as the point-ofsale transactions between banks and shops.

VSAT technology is deployed to work over one of two network configurations - known as star or mesh topologies - or a mixture of both. Star topologies involve use of a central uplink connection location, such as a network operations centre (NOC), to

African Review of Business and Technology - July 2012

transport data back and forth to each terminal via satellite. Mesh topologies have VSAT terminals relaying data via satellite to other terminals by acting as hubs, minimising the need for any centralised uplink site. The use of a combination of both star and mesh topologies may be connected in what is known as a multi-star topology, with each star and each terminal connected to each other in a mesh topology. The benfits of such configurations include minimal overall cost of network operation.

The reality of transformational banking M-banking has increasingly been heralded as the tool for bringing financial services to the continent’s largely unbanked population. Its potential to transform communities, to change people’s lives for the better – within societies that have previously have been outside the formal

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FINANCE

Banking

financial sector – is the key rationale here.

The provision of affordable and secure services facilitates financial transactions, primarily money transfer, is convenient for rural users, and serves as an inroad to large segments of the population that have been accustomed to a cash-based economy bringing them in to become a part of the formal financial systems and potentially turning them into bank customers - is the phenomenon underpinning the term ‘transformational banking’.

Here we see that, once included in modern financial systems, poverty can be addressed in a more efficient manner.

Transformational banking is yet to be researched and quantified to the extent that evidence can be cited on the prospects of serving unbanked through m-banking models, to impact on poverty alleviation positively. There is still a gap between the visions and the financial reality of the poor of sub-Saharan Africa. Bear in mind, too, only one per cent of the sub-Saharan population is regarded as banked, and that a substantial part of the rest lives in a cashbased, subsistence, barter-trade economic environment. Consider the economic data that indicates that the majority of Africans survive on less than one US dollar per day, which means there is an extremely small window for savings. One aspect of subSaharan existence is the clear need for distribution of wealth through remittance mostly within extended families but also between friends. A second understanding is that there is low reliance on formal employment as a sourceof income.

Consider that only four per cent of the population in Tanzania has earnings that could be transacted through conventional bank systems. Many Africans are selfemployed, selling produce from farms or work in informal sectors, which typically are cash-based.

It may be that the provision of structured financial services to the unbanked will lead to socio-economic development. It may be that banking and financial services must synergise with other insitutional and economic components to trigger development. It seems clear that there is no single quick fix for development. However, a commonly accepted understanding is that the use of ICTs to support developmental initiatives and knowledgebuilding, within a multi-stakeholder network of organisations, companies and individuals, involving governments, academia, the private sector and civil society, can reduce poverty and promote economic development - and that mbanking offers commercial, regulatory and

40

Setting up a satellite dish can be straightforward affair

The provision of affordable and secure services to remote communities, through satellite connectivity, facilitates financial transactions for rural users - and serves as an inroad to populations that have been accustomed to a cashbased economy - bringing them in to become a part of the formal financial systems and potentially turning them into bank customers administrative opportunities to achieve conditions and structures for inclusion and uptake of services by those presently excluded from financial ecosystems.

Under review, still The m-banking phenomenon must be recognised through actual mass usage of m-banking services, of course, to have significant impact. Its relevance to poverty alleviation and actual impact is under discussion - but existing documentation and research lacks the indepth and balanced analysis to identify whether m-banking activities have had or are likely to have any impact on poverty alleviation amongst previously unbanked

African Review of Business and Technology - July 2012

populations. Experienced m-banking executives, policy makers, regulators, consultants and civil society executives approached by African Review of Business and Technology do indicate, however, that development through deployment and utilisation of ICTs, supported by measures of private and public sector participation, will deliver market access to financial services across rural as well as urban domains, and that a key function of development lies in the increased availability and affordability of satellite connectivity - for instance, via utilisation of VSATs in communites without stable or fully structured mobile communications networks. ■

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TECHNOLOGY

Printers

No longer just a printer F

or many years, the printer has been just that, a printer a device for reproducing documents onto paper.

Although there have been variations in printing technology with inkjets, lasers, multifunction and specialised devices, The Lexmark Pinnacle Pro901 offers a a innovations have been customised, interactive printing experience few and far between.

All of this is, however, has changed as the world becomes increasingly connected and printing begins to break down the traditional boundaries of the static device of the past.

Intelligent connections The printer of today is no longer just a printer, but an intelligent, intuitive device allowing for printing anytime, anywhere. Connectivity has enabled printers to offer so much more than the standard technology of the past and has opened up a whole new world for this environment.

Following the technological trend curve of mobile devices, where a multitude of functionality has been incorporated into single devices, printers now enable users to access documents using smartphones and other devices, and print from the cloud, on demand, from anywhere in the world.

Mobile devices like smartphones and tablet PCs have also given rise to the evolution of the touch screen and the app, and the printer too has followed this trend. Full colour touch-screen interfaces deliver a far more intuitive printing experience for today’s user, but the innovation of the printer goes much further than this. Today they provide direct access to a range of smart applications, from business and printing-related apps to social media apps that keep users connected. ■

Sign Africa/Africa Print Expo offers a gateway into Africa

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he Sign Africa and Africa Print Expo, the largest commercial and digital print and sign, display and digital graphics expo for Africa, will take place from 22 - 24 August 2012 in Johannesburg, South Africa. The expo is the gateway into Africa, with over 6,000 visitors, including a large number from the African continent as well as other international visitors, expected to attend.

The expo is not only targeted at sign makers, display companies, digital printers, commercial printers, marketing and advertising agencies, brand and product teams, media owners, retail merchandising managers, creative directors, graphic designers and architects - but also at entrepreneurs interested in exploring new business opportunities. Visitors will be able to learn more about the industry and get ideas for equipment to start up, or incorporate into, their businesses.

Visit www.signafricaexpo.com and www.africaprintexpo.com

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African Review of Business and Technology - July 2012

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TRANSPORT Information Technology

Improving public and private sector traffic

The solutions implemented to deliver a safer, more efficient and more costeffective transport network in Kenya’s capital city

T

echnology firm IBM unveiled, recently, a blueprint that will improve the flow of traffic, increase revenue collection from the transport sector and enhance collaboration between transport authorities in the City of Nairobi.

The technology includes the use of mobile phones, sensors and closed circuit television networks to better pinpoint traffic gridlocks and other issues.

Recent studies show that Nairobi loses US$220mn annually from lost productivity occasioned by massive traffic jams, increased fuel consumption and pollution.

A team of IMB consultants proposed the use of new CCTV cameras to show vehicle and traffic conditions in real time as well as crowd- sourcing information from the public on traffic snarl-ups.

Already, a number of traffic cameras have been set up and mobile applications such as VIPI can be used to give traffic updates to consumers.

Intelligent integration “The intelligent operations centre would support existing initiatives like VIPI or #OverLapKe on Twitter by integrating the

46

data from them into a single source,” noted Vincent Njoroge, IBM global business services for East Africa.

Nairobi shows that the operation and growth of public transportation can be managed efficiently and cost-effectively Mobile service providers would also be integrated into the system where they are expected to share information from heir networks. For instance, increased density of mobile signals would signify traffic jam and using a map, commuters would be warned using SMS to avoid such spots and roads.

IBM consultants, however, add that for the system to work, the Traffic Department would have to digitalise its records and develop a database that captures traffic incidences around the country.

An intelligent centre will also have to be created and should be accessible using mobile phones.

African Review of Business and Technology - July 2012

Through the system, a traffic police officer would enter the number plate of the vehicle and find out its history on the spot through a mobile phone.

Nairobi’s new communication network Meanwhile, Internet giant Google has introduced a transport payment card on Citi Hoppa buses plying Nairobi routes using the near field communication (NFC) technology.

Citi Hoppa is a private bus company that offers transport services within the city of Nairobi and its environs.

The card allows users to load money and make fare payment by tapping on a hand held device in the buses.

Google Kenya communication manager Ms Dorothy Ooko said that the project is on pilot basis and official launch with more partners is in the offing.

NFC is a wireless technology that allows devices to exchange information when in close proximity. It is commonly installed in Smartphones which are then used to make payments in retail outlets. ■ Mwangi Mumero

S08 ATR July 2012 Report E_Layout 1 21/06/2012 11:44 Page 47

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S08 ATR July 2012 Report E_Layout 1 21/06/2012 11:44 Page 48

EQUIPMENT

Transport How wheel and tyre choice can cut C02 emissions

T

he revelation in November that a new international treaty on climate change will be delayed until 2020 at the earliest means that the actions of individual people and companies to reduce their carbon emissions will become even more important. Recent research by truck maker Volvo and tyre manufacturer Michelin shows that a quick and simple measure can have a significant impact on emissions without the need for major outlay or new ways of working: checking and correcting the tyres and wheels on your vehicle.

The study shows that having the right tyres, tyre pressure and wheel alignment can reduce fuel consumption – and therefore CO2 emissions – by up to 15 per cent. If the environmental incentive is not enough, in financial terms that could be a saving up to €8,000 per vehicle per year.

“We know that wheel alignment, tyre type and tyre pressure all have a major impact on fuel consumption,” says Arne-Helge Andreassen, business area manager for tyres and wheel alignment at Volvo Trucks’ Aftermarket department. “There is a lack of awareness in the transport industry about the importance of checking tyres

48

African Review of Business and Technology - July 2012

The study involved use of two Volvo FH 4x2 trucks, each equipped with a 500 hp 13-litre Euro 5 engine

and wheel alignment, on both the truck and the trailer. At our dealers, we can help haulage companies check the entire rig and correct any problems. If everyone did this, it would have a significant impact on carbon dioxide emissions.”

S08 ATR July 2012 Report E_Layout 1 21/06/2012 11:44 Page 49

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S08 ATR July 2012 Report E_Layout 1 21/06/2012 11:44 Page 50

WATER

Hose

The biggest hose bend in Africa A 1,000 nominal bore (NB) hose weighing 1.4 ton with a mandrel weighing 1.4 ton, manufactured for export to Australia

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eir Minerals Africa has recently dispatched the biggest hose bend manufactured on the African continent - a 1,000 nominal bore (NB) hose weighing 1.4 ton and a mandrel weighing 1.4 ton - to a customer in Australia and is currently working on an enquiry for an even bigger unit of 1,100 NB. These orders follow the successful completion in 2010 of what was then the biggest hose bend to be produced on the continent, an 855 NB unit.

“Before we entered this market segment, there were only three suppliers in the world capable of manufacturing hose bends of this magnitude,” Weir Minerals Africa’s Grant Ramsden, says. “We recognised that demand was greater than supply and took a strategic decision to develop the capacity to produce these units as an additional specialised product line.

“There’s a definite trend in the mining industry worldwide towards hose bends with increasingly larger nominal bores and we’re now fully geared up to meet and remain abreast of this requirement.”

Producing the capabilities Ramsden says the biggest challenge at the start of this initiative was to locate an engineering company capable of producing hose mandrels of the required size.

“Tooling design has been carried out inhouse by our engineering department in Isando and we’ve been fortunate enough to find an engineering company based in KwaZulu-Natal that could manufacture the hose mandrel and the bend former for us.”

Ramsden adds that other challenges included the physical handling of the massively heavy hose bends and the manner of extracting the large mandrel from the cured product.

“In the end we devised a highly innovative solution for extracting the

50

Weir Minerals Africa has dispatched the biggest hose bend manufactured on the African continent - a 1,000 nominal bore (NB) hose weighing 1.4 ton and a mandrel weighing 1.4 ton - to a customer in Australia

mandrel in a very short time frame,” he says.

“In fact, manufacturing the 1,000 NB unit went very smoothly, because we had trialled and debugged the system while expediting the order for the 855 NB unit last year.”

Weir Minerals Africa has integrated Linatex high wear, super abrasion resistant rubber into the design of the hose bend, as well as high-strength synthetic fabric with steel reinforcing within the body, for greater flexibility.

“The use of Linatex branded rubber in this application further entrenches us in this market segment, because there is no other material that compares with it,” Ramsden says. “This is clearly an excellent export opportunity for us and we’ve set our sights on the top end of the market.

“Backed up by the Weir brand, our hose bends are world class and have come onto the international market at a significantly lower price than what has been on offer until now, even when factoring in the freight charges.

“We’ve created the capacity necessary to manufacture these large hose bends in

African Review of Business and Technology - July 2012

volumes and, in addition to the enquiry for the 1,100 NB unit, we’re already handling additional orders for the 865 NB unit.”

The Weir Group acquired the Linatex group of companies in September 2010, and continues to market the renowned Linatex rubber products.

“These products are proving a valuable addition to an already formidable Weir Minerals Africa product line serving the company’s key markets of mining, dewatering, energy, oil and gas, transportation, milling, processing, general industrial and water/waste management,” Ramsden says. “Linatex branded rubber works well in tandem with many of our products, as well as bringing exciting new and diverse solutions for us to offer our customers throughout all our markets.”

Weir Minerals Africa delivers end-to-end solutions for all mining, transportation, milling, processing and waste management activities. The company specialises in delivering and supporting a wide range of slurry equipment solutions, including pumps, valves, hydrocyclones, wearresistant linings and dewatering products. ■

S09 ATR July 2012 Report F 02_Layout 1 20/06/2012 15:46 Page 51

Gensets

POWER

Power potentials, from North to South Analysis of the past year’s business in generating sets for Africa finds that North African issues have affected sub-Saharan demand negatively – but that demand, and so the potential for growth, remains strong

A

lthough Africa is the world’s second largest continent with a population of over one billion people, 15 per cent of the world total, and 20 per cent of its land mass, it only consumes three per cent of the world’s production of electricity. Whilst the availability of energy alone, including its production, is not the only factor in determining economic growth, it is a critical element. Without an adequate supply of electricity neither industry, nor commerce and agriculture, to name but three can function effectively, and in some countries not function at all. Without it there is little ability to provide clean drinking water, irrigate crops, refrigerate medicines or power small scale industry. A lack of electricity is the clearest possible indication of a country’s energy poverty.

combined generating capacity was equivalent to 6,910MWe, almost 13 per cent of global exports. The Far East (31 per cent), Europe (23 per cent) and the Middle East (19 per cent) were the three larger regions.

Fig.1. highlights African imports as a proportion of total consumption.

Africa’s overall consumption of diesel engine driven generating plant in 2011, when measured in aggregate megawatts, was 5 per cent more than the previous year. A total of 121,200 generating sets were either imported or domestically assembled for sale having a generating capacity of 7,940MWe and a market value of US$1.5bn.

Connecting the continent Whilst many rural electrification programmes have been established there are still half a billion people in Sub-Saharan Africa who have no access to electricity, i.e. 45 per cent of the 1.3bn people in our universe who live without it. In the midst of economic, political and social turmoil, many of the poorest nations in Africa are still unable to find the resources to bring national electrification schemes to their people, so it is of little wonder that the demand for diesel engine driven electrical generating plant is so high.

In 2011 Africa was the world’s fourth largest importer of generating sets. In total the continent imported 110,435 units, 51,000 of them having a rating of less than 7.5kVA and a further 39,200 between 7.5 and 75kVA. A half of all imports were sets of a rating less than 375kVA, with only 15 per cent above 1,500kVA. In aggregate terms their

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S09 ATR July 2012 Report F 02_Layout 1 20/06/2012 15:46 Page 52

POWER

Gensets

North African events During the year growth was inhibited by the decline in sales to the countries of North Africa, in particular Egypt and Libya, and to lesser extent Tunisia. Genset sales in these three countries fell by 2,800 units (540MWe).

North Africa has traditionally represented a quarter of African consumption, but in 2011 this decreased to less than a fifth (Fig.2). ). In sub Saharan Africa sales declined in the Ivory Coast, Sudan and Zimbabwe.

According to the IMF Tunisia saw its GDP growth decline from three per cent to zero in 2011, whilst Egypt’s declined from 5 per cent to one per cent. But far the greatest fall was in Libya which is believed to have contracted by a half following the civil war. This has been reflected in the decrease of foreign investment in North Africa, with these three countries in particular having been severely affected. In Egypt foreign investment fell from almost $12bn in 2007 to $500mn last year and in Libya from about $5bn to nothing during the same period.

Whilst almost 20,000 more generating sets were consumed throughout Africa in 2011 than in the previous year, bringing the total to 121,200, there was a significant change in mix. Generating sets below 7.5kVA were much in demand, increasing by 12,000 units to 51,000, the highest level ever recorded.

However, they still only represented 2.5 per cent of the aggregate generating capacity of all sets, and over 80 per cent of these were of Chinese origin. Similarly gensets in the range 7.5/75kVA increased in volume by 7,500, but in all other categories the pattern of demand was unchanged (Fig.3).

Across the continent Of the 54 African nations - which now include the state of South Sudan and the island nations of Cape Verde, São Tomé and Príncipe, Madagascar, the Comoros, the Seychelles, and Mauritius - five countries accounted for 58 per cent of the continents generating set consumption, and 10 nations for 73 per cent..

The five key markets have remained unchanged for several years viz. Nigeria, South Africa, Angola, Egypt and Algeria, despite only modest growth in Nigeria - the continent’s largest market - and a 25 per cent decline in Egypt during 2011 (Fig.4).

It is not surprising that Nigeria is the largest African genset consumer when its population of 155mn enjoy only very few hours of electricity each day, if at all. Many Nigerians who can afford it continue to purchase their own power plants. In the past three years 70,000 generating sets have been installed, 52,000 of them having an output less than 75kVA. Today much of the power supply is generated in domestic homes and by small

52

business enterprises. This could change if the privatisation scheme for the Power Holding Company of Nigeria (PHCN), which is much

African Review of Business and Technology - July 2012

talked about, but suffering continuing delays at the time of writing, finally goes ahead. It is also surprising than when GDP has been

S09 ATR July 2012 Report F 02_Layout 1 20/06/2012 15:46 Page 53

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S09 ATR July 2012 Report F 02_Layout 1 20/06/2012 15:46 Page 54

POWER

Gensets

growing at over 6 per cent per year there is still only a very small manufacturing sector.

Nigeria, the largest of the African markets, experienced an uncertain year. Although generating set sales increased by 4,500 units to 24,500, they were all of an output between 7.5 and 30kVA. Above this there was an across the board reduction in demand for most categories with the exception of generating plant in the ranges 250-375 and 1,0001,500kVA. However, 2011 was the best year since the peak of 2008, even if the recovery was modest, and saw a small growth in the aggregate generating capacity from 1,520 to 1,630MWe. The compound annual growth rate for the past decade has been 11.5 per cent, but this level of growth is unlikely to return in the short term.

Even so the market in 2011 was worth $315mn.

Some observers forecast that Nigeria’s economy may eventually overtake that of South Africa to become the largest economy in the African continent as prices and consumer spending increase. The average annual growth in GDP between 2004 and 2009 was 6.3 per cent and this is expected to grow to over 8 per cent in 2011/12. Agriculture constitutes 33 per cent of GDP, industry 41 per cent of which only 3 per cent is manufacturing, and 26 per cent services. Imports, which include generating sets, are 22 per cent of GDP. The underlying prospect for growth in the generating set market remains strong.

The South African economy by contrast was growing at a slower rate of 3.6 per cent per year between 2004 and 2010 and was expected to do so again in 2011, increasing to 3.9 per cent in 2012.

However, economic growth has been held back since 2008 when the demand for electricity, due to rapid industrial growth during the previous decade, outstripped generating capacity. The power cuts that ensued resulted in the government moving quickly to implement measures to reduce both domestic and industrial consumption, as well as implementing a plan to fund and build new power stations.

The power disruption and cuts caused a 2.5 times growth in the demand for diesel generating sets. However this demand, which was not sustained in 2009/10, did pick up moderately in 2011. In 2010, the latest year for which statistics are available, South Africa’s electricity generation of 268,000 GWh was more than ten times that of Nigeria; the highest in Africa and 16th in the world.

Whilst Eskom, the major electricity provider, plans to increase its share of the current installed generating capacity of 44,GWe, mostly coal fired at present, by a further 40 GWe by 2025, the South African Department of Energy forecasts the need for 52GWe by 2030. By then the element of coal fired generation should be reduced to just under a half, with nuclear generation at 14 per cent.

Unlike Nigeria only 3 per cent of the origin of South Africa’s GDP is in agriculture. Industry accounts for 31 per cent of which manufacturing is 15 per cent, leaving a balance of 66 per cent to services. The demand for diesel generating plant is, therefore, significantly different. In 2011 the market consumed 9,900 generating sets having an aggregate output of 1,000MWe. Of these, 70 per cent of all gensets were in the range 7.5375kVA and only 6 per cent above 750kVA. Despite the lower demand in 2009/10, the market, which picked up by 8 per cent in aggregate output terms in 2011, has been growing at an underlying rate of 18 per cent annually for the past five years and is currently valued at $165mn.

Angola, the fourth largest genset market in Africa, was one of the fastest growing economies in the world enjoying double digit growth until the global recession of 2008. Then, lower oil prices stalled economic growth to 2.4 per cent and caused high consumer inflation.

In 2011 higher oil prices helped Angola get back onto an even keel, turning its budget deficit of 2009 into a surplus. However, oil production and its supporting services, which contribute about 85 per cent of GDP, have been the sole reason for the high growth rate in recent years. Despite this oil wealth a third of Angola’s 13mn population still rely on subsistence agriculture.

54

African Review of Business and Technology - July 2012

Electricity production at 4,000 GWh annually is about a fifth of Nigeria’s, but the government of Angola has set itself an objective to provide its urban population with 100 per cent electrification by 2012.

Even if it happens the market for generating plant will continue to grow because the consumption of electricity per head of population is only 300 kilowatt hours annually. In 2011 the market consumed 12,900 gensets with an aggregate generating capacity of 690MWe. This was a considerable improvement on 2010 after the fall in 2009/10 when the market declined by 40 per cent. A vast majority of the units sold (7,000) were of an output less than 7.5kVA, 3,800 between 7.5 - 30kVA and 1,680 between 75 - 375kVA. Today the market is valued at $135mn and has enjoyed an underlying growth rate of 15 per cent for the past five years.

Three of North Africa’s markets, Egypt, Libya and Tunisia were affected by the popular uprisings which caused a disruption of economic activity affecting both domestic production and imports. In Egypt, the most populous country with 83mn people and the third largest generating set market in Africa, the effect was not as dramatic as might have been expected. Demand fell by only 25 per cent having recovered substantially in 2010 from the set-back in 2009.

Although Egypt has a large domestic consumer market its foreign currency reserves have been badly affected. The outlook for 2012 must, therefore, be somewhat cautious despite an annual growth trend of 14 per cent in the generator set market for the past 5 years. In 2011 the Egyptian economy grew at only 1.2 per cent, well down on 2010, and unemployment rose. Foreign investment also stalled as investors in future energy and construction projects waited to see how the political and economic climates might develop. It is unlikely that the generating set market will show any significant growth in 2012 as economic growth is likely to remain sluggish as the government utilizes foreign exchange reserves to support the Egyptian pound. Last year slightly less than 5,000 generating sets were consumed having a generating capacity of 675MWe and a value of $110mn. Generating sets of an output exceeding 375kVA accounted for 70 per cent of the aggregate generating capacity.

In 2011 the Libyan genset market collapsed from its peak in 2009.

Consumption more than halved from the previous year when 3,000 units were sold. Most marked was the decline in the availability of units above 375kVA, demand having fallen from 330 in 2009 to 20 last year. The market was valued at only $12mn, a fifth of its potential. The aggregate generating capacity of all units was 60MWe. The Libyan economy depends primarily upon oil revenues which represent 95 per cent of Libyan export earnings and 65 per cent of GDP. The country holds the largest proven oil reserves in Africa. In the service and construction industries, which expanded rapidly in the years before the uprising, both construction and oil companies are now competing ferociously with each other in a race to secure contracts to rebuild the economy. With a GDP growth in excess of 10 per cent in 2010, a population of 6.6mn and potential electricity consumption of 24bn kilowatt hours per year the generating set market should, in due course, be able to regain its annual growth rate of at least 15 per cent and achieve sales approaching $60mn Although Algeria is the fifth largest generating set market in Africa its economy remains dominated by the state. It is the world’s fourth-largest exporter of natural gas. It also has the world’s eighth-largest natural gas and the 16th-largest oil reserves. Natural gas is the prime source of Algeria's electricity generation which reached a production of 45,200 GWh in 2010. Whilst dependant on the hydrocarbon sector, which accounts for 60 per cent of the country’s revenues and some 30 per cent of GDP, it also represents 95 per cent of Algeria’s exports by value. With an underlying annual growth rate for generating sets of 9.5 per cent the market consumed 5,250 units in 2011 having an aggregate output of 560MWe and a market value of $93mn. Mostly in demand were generating sets of outputs exceeding 375kVA. These represented 65 per cent of the total generating capacity.

S09 ATR July 2012 Report F 02_Layout 1 20/06/2012 15:46 Page 55

S09 ATR July 2012 Report F 02_Layout 1 20/06/2012 15:46 Page 56

POWER

Gensets

Thirteen months after the revolution the Tunisian economy shows no sign of growth.

Investment has slowed and tourism, a key element of the economy, is suffering badly.

Unemployment is also rising and the government’s target of 4.5 per cent economic growth this year looks unlikely to be achieved. This was reflected in the demand for generating plant in 2011. Whilst a relatively small market, Tunisian demand fell to 640 sets with a generating capacity of 50MWe and a value of $9mn. Last year the economy contracted by 1.8 per cent. By comparison, not dissimilar economies in Morocco and Algeria saw growth of 4.5 and 3 per cent respectively.

import of generating sets of ratings above 75kVA. Whilst the import of sets in the range 1-75kVA increased from 80 to 90 thousand units, those between 75-375kVA, the centre of gravity of the generating set business, almost halved to 15,250 units. Above 375kVA the decline was less marked but the overall

effect is that since 2008 the aggregate generating capacity of imports of all African countries has declined by 26 per cent from 9,325 to 6,910MWe, having a value of $1.3bn in 2011.

Almost two thirds (71,875) of all generating sets imported into Africa in 2011

Importing countries and market drivers Imports, as already identified in Fig.1, constitute a major element of Africa’s genset consumption. After the peak of 2008, when 115,250 generating sets were imported, imports fell to 91 and 90 thousand units respectively in the following two years.

Whilst 2011 signalled a year of recovery imports reaching a level of 110,500 generating sets - the pattern of demand changed significantly. This was due to the substantial decrease in the consumption and

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African Review of Business and Technology - July 2012

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S09 ATR July 2012 Report F 02_Layout 1 20/06/2012 15:47 Page 57

Gensets were of an output less than 30kVA, accentuating the rapidly growing demand for electricity by small scale agricultural, commercial and domestic users. If sets between 30 to 75kVA are included the total rises to 90,250; eighty two per cent of all imports. Although of a much lesser volume, the import of generating plant between 750 to 2,000kVA has more than doubled in the past five years reaching a total of 1,500MWe in aggregate.

The major beneficiaries of trade with the African continent have been the United Kingdom, China and France who between them accounted for 62 per cent of all imports in 2011 – 4,250MWe. If Italy, Spain and South Africa (an emerging supplier) are included the total increases to 76 per cent.

Since the peak of 2008 both China and France have more or less maintained their market shares of 17 and 13 per cent respectively in terms of the total MWe imported by the African continent. By comparison the United Kingdom has slipped several points to an overall market share of 32 per cent (Fig.5). Even so the United Kingdom remains the leading supplier of generating sets in the range above 7.5kVA with a 40 per cent share between 7.5-

750kVA. China, by comparison, now dominates the under 7.5kVA market with an 80 per cent share and has progressively gained market acceptance in the range above 750kVA. Both the Lebanon and South Africa have seen increases in their market share for each of the last three years.

POWER

During the past five years the fastest growth has been for small generating plant.

Consumption of sets below 7.5kVA has grown at a rate of 12.5 per cent per year, and imports at a somewhat higher rate due to the volume of Chinese trade. Between 7.5 and 75kVA demand has grown at 9 per

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S09 ATR July 2012 Report F 02_Layout 1 20/06/2012 15:47 Page 58

POWER

Gensets

annum, and above 75kVA both consumption and imports have expanded between 4 and 7 per cent annually. Whilst the short term prospects remain uncertain for some countries, overall growth for the continent in 2012 is most likely to be in the range of 8-10 per cent compared to five per cent in 2011.

The global context In global terms, the worldwide consumption of diesel and gas engine driven generating sets in 2011 was 84,050MWe (Fig.6), a 6.5 per cent increase on the previous year. If not as high as the 12.8 per cent increase in 2010, demand continued to recover following the fall in 2009. The compound annual growth rate for the five years since 2006, when global demand reached 61,200MWe, has been 4.4 per cent, and was valued at $15.9bn in 2011. 1.21bn generating sets were sold in the year, 86,000 more than in 2010.

The Far East has remained the worldâ&#x20AC;&#x2122;s largest regional market throughout the last decade, though ten years ago it was only marginally larger than that of North America. During the past five years it has grown at an annual rate of 8.5 per cent. But not all markets have enjoyed such growth. By comparison Europe and North America, the next two largest markets, have shown no underlying growth over the same timescale.

The South American market, though representing only six per cent of global demand, has been expanding at a rate of 22 per cent per annum since 2006 (when its share of the world market was only 3 per cent), whilst Africa and the Middle East have been growing at the somewhat lower rates of 8.5 and 9.7 per cent respectively (Fig.7).

In 2011 a total of 1.21mn generating sets were consumed by the worldâ&#x20AC;&#x2122;s markets. Although half of these were of an output of less than 7.5kVA, they represented only 3 per cent of the MWe demand. The greatest demand - which has not changed significantly during the last

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African Review of Business and Technology - July 2012

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Gensets 10 years - was for sets in the range 752,000kVA. These totalled 223,000 units in 2011 representing 71 per cent of the aggregate MWe demand (Fig.8).

If we consider the market in terms of value, rather than aggregate electrical megawatts consumed, then a different pattern emerges due to the higher cost per kilowatt of lower output generating sets. Units below 7.5kVA represent an 11 per cent share, whilst those in the range 75-2,000kVA are 54 per cent. The value of regional markets is shown in Fig.9.

Whilst consumption measures the overall size of a market - taking into consideration a region or countries domestic production, imports and exports – most countries are acutely aware of their trade balances. Because the largest volume of generating sets are manufactured within twenty or so countries, and with the exception of China, Japan and India, mostly located in the Western Hemisphere, export/import trade represents a high proportion of the total consumption.

Whereas one might have expected the proportion of imports to total consumption to have decreased over the last five years as more domestic production came on stream in some of the emerging economies, it has in effect increased from 58 to 64 per cent.

Latest estimates indicate that in 2011 a total of 583,300 generating sets were exported by the major producing countries having a value of $9.5bn and an aggregate generating capacity of 54,100MWe. The

United Kingdom was the dominant exporter with a 24.3 per cent global share (13,100MWe), followed for the first time in second place by China with an 18 per cent

POWER

share; marginally ahead of the USA with 14.2 per cent (Fig.10). ■ Copyright: Gerald Parkinson © 2012

Acknowledgements Data for this article is provided from GENSTAT, a definitive database analysing the worldwide market for generating sets in 12 bands for over 200 countries. For more information contact George Williamson at Parkinson Associates Tel. 01452 534 388 or e-mail enquiries@parkinsonassociates.com

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POWER

Gensets

Markets and movement in power generation The continent’s key importing and exporting nations in recent years exhibit signs of continued potential as demand for power remains high

I

n 2011 African imports have seen a strong progression of over 14 per cent, going back to higher levels. Despite this important growth, we are still far from the levels of 2008, but the continuous progression is definitely giving strong positive signs.

The high power ranges imports have been stable and the growth has mainly been in the lower power ranges from 0 to 75 kVA giving us strong signs of the remaining financial pressure on investments for larger equipments.

Nonetheless, this also gives us strong indications of the power needs in the continent.

Table 1: Top African Importing Nations

Nigeria 21%

Angola 11%

Egypt 6%

Despite a growth of over 30 per cent over 2010, with an incremental $64mn imports, Nigeria, the largest African market, is still 15 per cent off its 2008 levels, which is a very encouraging sign for the potential of 2012 imports. Angola and Egypt close the list of the top three, representing 38 per cent of the total African importing nations.

Who has benefited from the growth?

Table 2: Top Exporters to Africa Progression over 2010 (USD) UK + 38%

China + 27%

France - 7%

The main exporters to the continent are UK, China and France - representing more than 55 per cent of total exports. In 2011 only China and UK have taken advantage of the growth in the market and have also managed to gain market share over France, which has declined by over seven per cent

60

compared to 2010. A strong Euro is maintaining pressure on French manufacturers’ exports into Africa - and this could still be the case this year if the exchange rate balances do not move.

The impact of the Arab Spring on business in North Africa.

Table 3: Percentage Import Growth: 2010 vs 2011 Algeria Egypt Libya Morocco Tunisia

21 -32% -77% 17% -40%

Over a year has passed since revolutionary activity commenced in many Northern African countries. It is interesting to look at the market movements in Morocco, Algeria, Tunisia, Libya and Egypt, following these events.

African Review of Business and Technology - July 2012

Overall, the region’s imports have dropped by 25 per cent compared to 2010 but the region still represents a strong market in Africa, with strong potential, as it is trading far below its normal level.

Despite a drop of over 30 per cent compared to 2010, Egypt remains in the top three markets in Africa. Algeria has seen a growth of 21 per cent to over $70mn of equipment shipped last year. The strongest decline has been in Libya, at -77 per cent. ■ Source: PGS Consulting Ltd (www.powergen-statistics.com)

Special Offer for African Review readers 30% Discount for the purchase of 2011 Global Market Report, worth €2,995. E-mail: contact@powergen-statistics.com and ask for your African Review Offer

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POWER

Lighting

LEDs to light up Uganda P

RUF LED, an American LED lighting manufacturer and distributor, is partnering with the non-profit Restoration Gateway to build hospital and dental facilities in Uganda where one in seven children dies of disease by the age of five.

PRUF LED will supply LED lights for medical facilities and other community centers served by Restoration Gateway in Uganda. “Our company works to improve the American environment and economy

PRUF LED donates lights to nonprofit for medical facilities in Uganda - (L-R) PRUF CEO Chris Sadler and CFO Frank Jennings, Restoration Gateway's Janice and Dr. Tim McCall

with our manufacturing of energy saving technologies, and today we are happy to also make a positive difference in one of the world’s poorest countries,” says Frank Jennings, chief financial officer of PRUF LED. “This will be revolutionary for the people of Uganda,” says Restoration Gateway’s Dr. Tim McCall who is a family physician from Waco, Texas now living in Uganda with his wife, Janice. He says, “PRUF LED’s generous donation of LED lights will allow us to perform critical health exams and surgeries, enable orphan students who live at RG to study and read at night, and make our auditorium/gymnasium functional after dark for plays, choirs and adult education in a region of the world which currently has no power grid.”

PRUF LED is headquartered at 7333 IH 35 S in Robinson, Texas and was founded in 2008 by Greg Klepper who is now PRUF LED’s Chairman of the Board. “PRUF LED’s patent pending technologies consume onethird the energy of traditional lights, reduce maintenance costs, and result in significant savings for commercial and industrial sectors, along with schools and government agencies,” says Klepper.

PRUF LED is a privately owned American LED lighting manufacturer and distributor with a state of the art Research & Development Lab providing turnkey solutions to the retrofit and new construction markets. ■

Customized Diesel Gensets WWW.LIONROCKPOWER.COM

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TECHNOLOGY

POWER

Research completed on carbon capture and storage Siemens and Masdar Institute of Science and Technology, an with a second project that started in December 2011, which is focused independent research-driven graduate-level university focused on on the evaluation of CO2 capture process waste reuse and recycling in advanced energy and sustainable technologies, have concluded the UAE. The Siemens Post Combustion technology offers a substantial first carbon capture and storage (CCS) research collaboration project. advantage, a sellable sulphur product will be separated with the new The R&D projects are focused on the solvent reclaimer technology. improvement and adaptation of the “Siemens has developed a new postproprietary Siemens Post-Combustion combustion carbon capture technology technology to the requirements of the based on Amino Acid Salt formulations. local markets, i.e. CO2 capture at gas This technology is environmentally very fired power stations and utilisation of friendly and has the lowest investment CO2 for enhanced oil recovery (EOR). The and operation costs”, said Nicolas start of the first project on ‘Evaluation of Vortmeyer, Head of New Technologies in CO2 Purification Requirements and the Siemens Energy Fossil Division. “The Evaluation of Processes for Impurities collaboration with Masdar Institute is Removal from the CO2 Product Stream’ very important for Siemens and the was in May 2011. The project evaluated research projects will support the the CO2 purification requirements for the adaptation of the Siemens Post CO2 pipeline transportation, EOR and Combustion Technology to the CO2 geological storage. Furthermore, it requirements of the local market, i.e. assessed the CO2 streams specifications Siemens’ Carbon capture and storage (CCS) technology binds CO2 retrofit of gas fired power stations and scrubbing agents to CO2 and on heating releases it again, whilst and impurities combined with the utilisation of the CO2 for Enhanced Oil remaining stable in the flue gas atmosphere selection and evaluation of the processes Recovery. We are confident our for CO2 stream purification. partnership will extend to cover more areas in sustainable technology The collaboration between Masdar Institute and Siemens continues for the benefit of the wider community.”

WHEN YOUR MISSION IS MAKING MEDICINES THAT SAVE LIVES, FAILURE’S NOT AN OPTION. ESPECIALLY POWER FAILURE. Tests are performed, results compiled and production lines roll.

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Loss of power for even a short time could cost a production run … and hope for those who need help now. For the health of this company and its customers, KOHLER backup power solutions are the best medicine. With KOHLER, the power stays on because the people behind the products are on. Always.

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EQUIPMENT

Power Energy savings from electric drives

A

BB, the leading power and automation technology group, has released its annual estimate of the savings achieved by its installed base of drives. About 310mn megawatt-hours (MWh) of electric power was saved by ABB drives in 2011, an increase of 19 per cent compared with the previous year. Electric drives are used to regulate the speed and power consumption of electric motors.

Industrial electric motors account for about 25 per cent of all the electricity consumed worldwide.

The savings from ABB drives in 2011 correspond to 260mn tons of CO2 emissions - had this power been generated by fossil fuels or electricity costs savings of approximately US$34bn for customers(i) at 2011 US electricity prices. These savings are equivalent to the electricity generated by more than 30 nuclear power station blocks.

“The future potential for energy and cost savings is enormous since only about 10 per cent of industrial motors are combined currently with electric drives,” said Ulrich Spiesshofer, member of

the Group Executive committee and head of ABB’s Discrete Automation and Motion division. “Using energy more efficiently will remain, for a significant time, the biggest opportunity available to cut energy consumption as well as costs and emissions.”

Electric motors are used widely in industry, for example, when pumping water, running fans and air conditioning, conveying goods over belts, rolling steel, moving elevators, etc.

ABB’s annual savings estimate is based on a comparison of the average electricity consumption in applications with and without drives. Many electric motors that are not equipped with drive technology run at maximum speed and are simply throttled if less performance is needed.

Energy accounts for 92 to 95 per cent of the life cycle cost of a motor, depending on its size, so an investment in electric drives typically pays back in less than two years. (i) At 2011 US electricity prices

Scalable electricity stations, from Hatz Diesel Developed and delivered by Hatz Diesel, SES (scalable electricity stations) offer a quality of power provision that may exceed standard requirements, delivering up to 100 per cent of electric load engagement. Operation is automatically controlled to enable the lowest possible fuel consumption, with reduced wear, a reduced risk of a system breakdown, and no shortened maintenance intervals and, hence, full exploitation across an engine’s lifetime.

Key features also include; an automatised balance of operating hours between engines; superior flexibility as additional twin-packs can be added anytime; high redundancy; the option of recycling waste heat (cooling air and exhaust gases).

Moreover, SES is extremely compact in size, with a low construction height - and is easy to install, with a self-ventilating system (aircooled engines) incorporated.

Reliable, and robust With robust and proven technology, Hatz engines offer the benefits of extremely long lifetime - at 15,000–40,000 hours, depending

64

African Review of Business and Technology - July 2012

on load and maintenance quality.

Furthermore, servicing is easy, as this conventional technology offers reduced running costs compared to relatively sophisticated common-rail systems. The engines are air-cooled, so external heat exchanger is required, and there is more

flexibility during use even under adverse conditions (for example, in tropical areas).

Note, also, that load response is immediate and dynamic, and there is no exhaust gas emission requirement in this power class. hatz-diesel.com

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0OWERæRAISEDæTOæTHEæMAXIMUMæ\æ10 - 3.000 kVA

#TRA æ-URCIAæ æ3ANæ*AVIER +M æ æ\æ3!.æ*!6)%2æ -URCIA æ30!).ææ\ææ4EL æ æ æ æ æ ææ\ææ&AXæ æ æ æ æ æsæ%XPORTæ&AXæ æ æ æ æ æ\ææWWW HIMOINSA COM

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CONSTRUCTION

Excavators

The most multifunctional kit Hydraulic excavators boost site productivity massively, but the sheer power available these days means a matching increase in hazards

D

eveloped from tough military plant, the excavator is the most useful single piece of contractor's plant available anywhere in Africa today. But to get the most work out of it - and that can be the daily equivalent of 100 labourers or more - it has to be properly used. That means thorough training of the operator, and running the machine on two shifts if possible every 24 hours. Most are equipped with powerful lighting these days.

Training means providing instruction on the many routine tasks that all excavators can handle, including the extras made possible with attachments like breakers and specialised lifting kit. This means planning the sequence of 'bites' or passes, arranging for matching complementary plant like dump trucks and bladed equipment to be available when needed, disposing of waste systematically and making good after the job is finished.

It also means learning the special features of the machine in use. 'Add-ons' like Komatsu's 'Mechatronics' and Cat's GPS sensors for levelling and alignment have increased the versatility of the modern excavator enormously, and some features aid fuel saving by offering an economy mode too. But, just as with the modern PC or intelligent cellphone, more than half of these sophisticated extras are usually unknown to the user who just carries out the task in the same old way.

So, arrival of new plant in the stockyard should always be accompanied by a dealer-led rundown of its capabilities in front of all likely operators. As the owner of the business you should be there too.

Essential to all digger operations in Africa is the maintenance of structural stability during all excavations. That means no-one gets hurt and penalty clauses aren't imposed.

So, even before the excavator is moved onto the site the following information needs to have been extracted from the client and passed on to the foreman: - a summary of known ground conditions including liability to

66

flooding the approximate location of all existing services, underground structures and watercourses the location and extent of nearby foundations and public roads informal housing in the area, and uses to which the land is put what access local inhabitants, children and their livestock have to the site.

Today's excavators have been designed to dig safely and efficiently

Standards for safety Apart from being run over (lines of sight are often poor and/or obstructed) the major dangers when working with a digger are of the collapse of the works themselves, the dislodging of excavated material as it mounts up (370 is the standard angle of rest for loose material, but this varies widely), damage to and from power cables including overhead ones, people falling into the trench (and the digger itself), and damage to structures that need to be preserved. So someone who is competent should inspect the excavation supports at the start of every shift, and check how the progress of works has affected the safety - in all its senses - of the site itself.

Every year in Africa many people are injured

African Review of Business and Technology - July 2012

by actually falling into trenches, by side collapses and by materials sliding from a waste mound carelessly piled alongside. A lot of equipment, hand tools and so on, is lost too, as well as time. Remember that every single cubic metre of damp soil, hardpan or whatever dug out by the machine - that's just one bite for a large machine - can weigh as much as a ton and is inherently unstable when piled closed to the trench itself. Heavy rain increases the risk all round; settlement over time reduces it.

To stop the excavations themselves actually collapsing the operator needs to decide before starting out what temporary support such as trench sheets, timber baulks and so on will be needed, and to make sure they are available along with the labour needed to place them ahead of the work. A safe angle of repose, shallower for the deepest excavations, should also be decided on and agreed with the clerk of works. This will slow progress but it should have been allowed for in the initial costing. anyway. Sometimes what is known as a movable and extendable 'trench box' needs to be installed or extended once the day's work has been completed; this may require cross bracing or other internal support.

Damage and injury from falling or dislodged material can be completely prevented by installing edge protection as the trench is extended, insisting on the workforce wearing head protection, and marking all danger points with plastic 'keep off' tape.

Even more damage can be avoided if all vehicles and plant not actually involved in the work are kept well away until it is complete or has been fenced in.

Finally, someone knowledgeable should have a close look at the works at the start and end of every shift, until the excavator is moved to another part of the site or the surface is made good. If he notices something wrong for legal reasons it should be clearly recorded on paper, along with a note of what needs to be done and whether or not this has been checked. â&#x2013;

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CONSTRUCTION

South Africa

Investing to build a nation’s infrastructure A national infrastructure drive, first announced by South African President Jacob Zuma, begins to build on stakeholder support

S

outh Africa is rolling out a multi-billion rand, state-led infrastructure drive, accoding to the nation’s Deputy President, Kgalema Motlanthe. SA’s government has been preparing to engage its provinces and other stakeholders on implementation of an investment initiative first announced by President Jacob Zuma in his State of the Nation address in February 2012, which addresses 17 strategic integrated projects that cut across energy, transport and logistics infrastructure to schools, hospitals and nursing colleges.

Motlanthe told delegates attending a Provincial and Local Government Infrastructure Conference in Boksburg, east of Johannesburg, that public-private partnerships were on the cards, and the government would be engaging businesses on the plan.

Limpopo, KwaZulu-Natal, Western Cape Investment in rail, water pipelines, and energy generation and transmission infrastructure have been identified for Limpopo province. Officials say the emphasis here will be on coal and platinum mining for local use and export, with the region's rail capacity expected to be extended to Mpumalanga province's power stations.

In KwaZulu-Natal, the plan is to strengthen the transport corridor between South Africa's main industrial hubs, while beefing up access to Durban's export and import facilities.

In the Western Cape, work will focus on strengthening maritime capacity in the Saldanha-Nothern Cape linked region.

Economic and social infrastructure The projects cover economic and social infrastructure across all nine provinces, with an emphasis on undeveloped areas and opportunities.

Energy projects will focus on supporting sustainable "green" energy initiatives through a diverse range of clean energy options.

Several new hospitals will be built, and existing ones refurbished in preparation for the National Health Insurance Scheme. About 122 nursing colleges will be revamped, and 90 new schools will be built this year.

Work getting under way Economic Development Minister Ebrahim Patel, presenting the project plans, said these were now being aligned with human settlements and skills development planning.

"The infrastructure programme has two components," Patel said.

"There is a component that we are implementing now, and construction is commencing."

The Presidential Infrastructure Coordinating Commission had been working on guidelines in order to ensure clear coordination among different provinces working on this component, Patel added.

"The second part deals with plans that have not been implemented because ... of lack of clarity over which sphere of government has the responsibility and ... lack of coherent business plans to unlock the finance from Treasury for these projects."

His Excellency Kgalema Motlanthe, Deputy President of South Africa

Plans to address shortage of engineers However, Patel said the government was concerned about the insufficient number of engineers, which could threaten the speedy implementation of some of the projects. Several strategies were being explored to address this, including entering into deals with universities and Further Education and Training colleges to ensure an expanded supply of engineers for the economy.

"The broader principle is that as our infrastructure programme gathers pace, one of the key bottlenecks we are going to hit is the shortage of engineers, so we have to now ensure that there is appropriate development of new skills commensurate with the ambition of our plan," Patel said.

"We think it's about time we encouraged ... engineers to come back to South Africa through the programme of work we have for them," he added. ■ BuaNews

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African Review of Business and Technology - July 2012

2007-50

S11 ATR July 2012 Report G 01_Layout 1 21/06/2012 11:53 Page 69

Experience the Progress.

Liebherr-Export AG General-Guisanstrasse 14 CH-5415 Nussbaumen, Switzerland Phone: +41 56-296 1111 E-mail: info.lex@liebherr.com www.liebherr.com

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CONSTRUCTION

Nigeria

Maintaining markets from West African bases

How infrastructure equipment distributor Mantrac serves Nigerian projects with a comprehensive portfolio of products

M

antrac Nigeria is the sole authorised dealer for Caterpillar products in Nigeria. It, therefore, distributes and supports the full range of CAT products in the country, with construction equipment including-wheel loaders, skid steer loaders, dump articulated trucks, backhoe loaders, excavators, motor graders, track type tractors.

And, through the length and breadth of Nigeria, it distributes mining equipment including-hydraulic excavators, diesel and electric-off highway and underground mining trucks, and underground mining loaders.

Furthermore, Mantrac Nigeria helps in mitigating the acute shortage of power supply in the country, serving numerous clients, with support from Caterpillar, which is amongst the world’s largest manufacturers of medium-speed engines and high-speed engines at between from 40KVA to 10,000KVA - including, notably, the Caterpillar and Olympian generators at 10KVA-220KVA. Mantrac has been in Nigeria for over 60 years, and so is in a position to use a wealth

of experience to provide turnkey services efficiently and effectively, including projects such as the international airport operationsin Lagos and in Abuja, covering all stages of the power system provision from system design and engineering to testing and installation, and even long-term maintenance and repair.

To support its customers further, Mantac Nigeria provides material handling and warehousing equipment.

Mantrac Nigeria offers its customers a choice of new or used products. Since it belongs to a multinational entity, it draws on the benfits of having a large and focused organisation. Mantrac is headquartered in Cairo, Egypt, with offices in Ghana, Kenya, Tanzania, Uganda, Sierra-Leone, Russia and Iraq. Bought new, the products carry the original Caterpillar warranty. Bought used, the customer is buying equipment that has been thoroughly inspected, expertly repaired and often backed by extended coverage options. And for customers not

Mr Ayman Ezz El Din, Managing Director at Mantrac Nigeria Limited

interested in outright purchase, Mantrac Nigeria also provides the option to rent.

And there is a high quality approach to after-sales service, backed nationwide by three offices in Lagos, two in Abuja, two in Warri and Port-harcourt, one in Enugu, and two in Kano and Kaduna. Each of these branches is open six days a week, with flexible working hours. There is also a computerised spare parts inventory system, which offers immediate access to information on stock levels and availability, so that parts can be supplied within 24 hours.

An admirable innovation is the ‘S.O.S.’ maintenance support programme, which helps to detect problems early so that they can be repaired before becoming a major failure, helping to schedule fitting and maintenance.

Opportunities for leadership In interview with African Review of Business and Technology, Mr Ayman Ezz El Din, Managing Director at Mantrac Nigeria Limited, spoke of the company’s commitment to infrastructure development in the country.

African Review: How long have you been working in Mantrac?

Ayman Ezz El Din: I have been working in Mantrac for 27 years, having joined in 1987 and over these years I have occupied various positions: Field Services Engineer, Technical Support Manager, Power Systems Manager for East Africa, Regional Manager for Africa for seven years - and, as the MD of Mantrac Nigeria, this is my fourth year; I resumed in 2009.

AR: You have spent most of your productive years in Mantrac-any special reason?

Ayman Ezz El Din: Mantrac is one of the best organisations to work for, the environment is very conducive. In spite of the fact that I could work elsewhere if I so wished, I decided to spend all these years in Mantrac-it is a stable place to work, it is international, the infrastructure is available to develop oneself.

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African Review of Business and Technology - July 2012

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S11 ATR July 2012 Report G 01_Layout 1 21/06/2012 11:53 Page 72

CONSTRUCTION

Nigeria

AR: What is your experience in Nigeria?

Ayman Ezz El Din: Nigeria is a big country for Mantrac. The opportunities here are immense. The population is large, and the economy is one of Africa’s greatest. Nigeria is one of the two biggest markets for Mantrac in the world, the other being Russia.

AR: In what sectors of the economy is Mantrac operating in Nigeria Ayman Ezz El Din: The oil and gas sector is very crucial market for us, we had therefore invested so much in developing our preparedness to serve this sector-our Port-harcourt branch had taken a chunk of our investible funds, we had invested US$4mn in the branch to develop it so we can have a state-of-the-art workshop there, we had to spend this much to take care of the sensitive nature of the oil and gas potentials .We even have a special team dedicated to the oil and gas sector.

However, we are in all the sectors of the economy, we are very strong in the banks, and telecoms as well. Though we pay special attention to oil and gas, we are not limited to that sector, for instance we are doing a turnkey project for the Murtala Mohammed International Airport and the Abuja International Airport. In the Industrial, we had also done a turnkey project for the Sokoto and the Ashaka Cement companies among others.

Nigeria is an important market for Mantrac. The opportunities are immense. The population is large, and the economy is one of Africa’s most dynamic” AR: Is that why you are investing so strongly in Nigeria?

Ayman Ezz El Din: We are interested in developing our expertise and in the process serve our customer better-we set up in Lagos, a Completely Knock Down Parts, we had also set up an outfit to

manufacture the soundproof of our generators. Why are we doing this-to contribute our quota towards the development of Nigeria, we are employing more people, we are increasing our local content profile, and we can say proudly that we are producing good quality products that are comparable to any in the world. We had spent an earlier US$2.5mn and we are investing afresh a further US$1.5mn.

We are computerising the whole of our operation to improve our quality-we want to run a professional outfit, to provide support for our customers so we can keep them happy.

AR: Are your customers just top end or do they cut across?

We have an advantage on the top end market because of the quality of our products, but our customers cut across, we serve both the top and the lower end. For the telecoms, we supply the 10KVA’s,but for the industries, we do supply up to 10,000KVA.We also do gas generators, it helps to improve the environment.

AR: Can you explain the rationale for the branches expansion?

Ayman Ezz El Din: We see a great future for Nigeria. We want to be closer to our customers, that is why we are creating four new branches and expanding existing ones, so we can give the customers support. We had acquired four hectares of land in Abuja, the Nigerian Capital so we can service our customers better.

AR: You are pushing the Earth Moving side of the business,why ?

Ayman Ezz El Din: We have always been interested in the Construction side, but we are pushing the frontier further-and in doing this, we are targeting both the private and public sectors-and we are bringing all the product lines, both new and used depending on what our customers need.

AR: What hope for the future?

Ayman Ezz El Din: We have been in this market for over 60 years, a proof that we are in here for the long haul, we are investing in our products, processes and people and we will keep investing. ■ Bola Olowo

Nigeria promotes building and water opportunities In Abuja, Nigeria, ACE Event Management recently highlighted the work of local companies and international suppliers in Nigerian water and construction sectors alongside the technologies available to these companies to succeed in these sectors, and with reference to the opportunities and initiatives in developing the nation’s infrastructure. The exhibition at West Africa Building & Construction showcased

Building and commercial prospects remain strong in Nigeria

72

African Review of Business and Technology - July 2012

machinery, tools and techniques for the housing and infrastructure construction sectors - helping those providing civil engineering and housing projects in West Africa to see new materials and machinery for use in construction, and talk to experts on how best to use them.

Its companion event, Water Africa 2012, offered opportunities for companies to put their products and services before purchasers from central and local government, industry, agriculture, non-governmental organisations (NGOs) and other key players from the entire West Africa region.

Seminar Programme: Exhibitors at Water Africa 2012 and West Africa Building & Construction 2012 were able to take part in the accompanying seminar programme, which was run in coordination with the relevant government ministries. The programme provided an ideal

West Africa Building & Construction showcased machinery, tools and techniques for infrastructure markets opportunity for exhibitors to get to know the problems and needs of the water and construction sectors in West Africa, and to provide information on their products and services.

Many of the exhibitors at the exhibition were new to the West African market, and were looking for local partners to help them sell and distribute their products and services in West Africa - recognising the great potential for business to be done at both shows.

S12 ATR July 2012 Report G 02_Layout 1 21/06/2012 10:17 Page 73

S12 ATR July 2012 Report G 02_Layout 1 21/06/2012 10:17 Page 74

CONSTRUCTION

Steel

Steadily attracting structural work Fledgling steel business goes from strength to strength at new plant in Soweto, South Africa

A

fter taking a leap of faith and resigning from the former Concor Plant in 2010, entrepreneur Bobby Mabe’s structural steel fabrication business is going from strength to strength under the coaching and mentorship of Murray & Roberts Plant.

Mabe named his company Soweto Structural Steel Engineering since it emerged from Soweto where he was born and bred. He offers design, fabrication, installation, maintenance and repairs of all types of structural steelwork as well as maintenance of all earthmoving machines. Today he employs two welders and a semi-skilled boilermaker and is currently working for Murray & Roberts Plant at their Amalgam premises, Crown Mines, where he is provided with a regular flow of work by the company.

Soweto Structural Steel is also steadily attracting outside projects; notably in 2010 his company installed palisade fencing at the Ventersdorp Magistrate’s Court. His biggest order to date was awarded by ThyssenKrupp Engineering in 2012 for Eskom’s Medupi Power Station and has been shared with

Concor Engineering, another Murray & Roberts company.

“I’ve been taught a great deal by my mentors at Murray & Roberts Plant,” Mabe says, “and I’m guided by the philosophy that the way you finish a job says a lot about your company.”

Based on his success to date, Mabe is poised to be absorbed into the Enterprise Development programme of Murray & Roberts Plant.

Entrepreneur Bobby Mabe’s structural steel fabrication business is going from strength to strength under the coaching and mentorship of Murray & Roberts Plant.

Bobby Mabe (left) of Soweto Structural Steel Engineering and one of his employees pictured at Murray & Roberts Plant's Amalgam premises near Crown Mines.

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African Review of Business and Technology - July 2012

Enterprise development Murray & Roberts Plant runs a thriving artisan apprenticeship programme and, in addition to its small business coaching and mentorship activities, the company is also putting energy into its own Enterprise Development programme.

“Our approach is hands-on involvement in developing a business owned and managed by a previously disadvantaged entrepreneur, rather than simply allocating a sum of money to an organisation which would undertake this kind of development initiative on our behalf,” Jeremy Hallett, financial manager at Murray & Roberts Plant, says.

“For us, it’s not just a matter of accruing points on a Broad-Based Black Economic Empowerment scorecard, but about making a positive and tangible impact in our industry with beneficial repercussions well into the future.”

A recent success story is the company’s partnership with Eastern Cape Tyres, founded and managed by Matthew Nondawyi. The fledgling tyre company operates from Murray & Roberts Plant’s premises and uses the company’s facilities, but like Mabe, is not restricted to working solely for Murray & Roberts Plant. On the contrary, Nondawyi’s is encouraged and supported in his effort to expand his business in the industry, deepen his expertise and provide services for other construction and engineering companies.

Eastern Cape Tyres trades under the name of Tyre Zone in Gauteng. ■

S12 ATR July 2012 Report G 02_Layout 1 21/06/2012 10:17 Page 75

GOT GOT A JOB JOB TO D DO? O? W E’RE R HERE HER RE TO TO H ELP WE’RE HELP TTerex er e ex C Construction onstruction iin nA Africa frica A Att T Terex, erex, ‘‘Works Works F For or Y You’ ou’ iis sm more ore tthan han a s slogan logan – promise. what on our iit’s t’s a p romise. IIt’s t’s w hat yyou ou ccan an ccount ount o n ffrom rom o ur equipment and Terex Africa, who here ere tto o e quipment a nd tthe he T erex tteam eam iin nA frica, w ho iis sh su support pport yyou. ou.

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S12 ATR July 2012 Report G 02_Layout 1 21/06/2012 10:17 Page 76

CONSTRUCTION

Asphalt

Mixing materials for a multi-lane highway Raubex Construction deploys rotary mixer to form the backbone of road reclamation work on a South African road

P

art of an extensive motorway network some 185 km long, the ongoing Gauteng Freeway Improvement Project (GIFP) is creating a modern, worldclass toll route system. The new road will provide major impetus to socio-economic growth in South Africa’s most populous and commercially active region.

Being built in stages by the South African National Roads Authority (SANRAL), these roads radiate outward in all directions from Johannesburg and Pretoria’s industrial and residential centres. Some sections of the road have already been completed, and the results are impressive. Congestion has been replaced by free-flowing traffic, an improvement crucial to the area’s business interests.

National Route 12 (N12) is one of SANRAL’s strategic priorities next in line for improvement. Civil engineering contractor Raubex Construction has been hired to overhaul a 10 km stretch known as Section 19. The scope of the work is challenging, and expected to last more than 30 months.

The existing N12 two-lane road will be replaced by three major new interchanges, successive bridge widenings and three Eastbound and three West-bound lanes. The new lanes will be placed in an existing median, and a central concrete barrier installed for safety.

Section 19 includes the main access point to Gauteng’s West Rand region, which flows to the agricultural and mining heartland of Mpumalanga province. Managing high traffic densities as the roads are realigned is among the challenges.

The durability of the well-travelled road starts with the creation of the base. The N12 design calls for an emulsion and cement stabilisation mix for the sub-base layers. That work is already under way.

“What makes the N12 project particularly noteworthy is that all materials will be worked in-situ or sourced from cuttings that will make way for the new lanes and

76

interchanges along the route,” explained Raubex Construction’s Johan van der Merwe.

“Achieving this requires very complex planning to meet incremental timeframes.”

Some 74 earthmoving machines will be deployed on the N12 site at some time during the project, a high percentage of which are Cat machines supplied and supported by southern African Cat Dealer, Barloworld Equipment.

The role of the reclaimer A new Cat RM500 Rotary Mixer was an early contributor on the jobsite. The machine handled full-depth reclamation and soil stabilisation for both the new and existing lanes.

Raubex was familiar with Cat rotary mixers. The firm gained considerable experience with the smaller-sized RM300, one of which worked on an earlier portion of the freeway system.

African Review of Business and Technology - July 2012

Barloworld Equipment’s product manager, Johan Hartman, explained that the Cat RM500 has an operating weight of 28,145 kg and is driven by a Cat C15 ACERT engine generating a gross power output of 403 kW. This compares with the Cat RM300 operating weight of 24,454 kg and gross power delivery of 261 kW via its Cat C11 engine.

Width of cut on both models is the same at 2,438 mm, while the maximum cutting depth is 457 mm.

Dual-pump system Unlike the RM300 unit, which has a single water pump for optimum moisture content delivery, the RM500 design incorporates both a water and an emulsion pump that are simultaneously monitored in the cab via two separate flow meters.

“We needed a higher power-to-weight ratio on the N12 to cope with the existing varied in-situ premix materials, plus the dual

S12 ATR July 2012 Report G 02_Layout 1 21/06/2012 10:17 Page 77

Asphalt

mix stabilisation design makes the RM500 the optimal choice,” van der Merwe said.

The RM500 pushed two tankers, one carrying 18,000 litres of emulsion and the other 18,000 litres of water for the sub-base phase. The emulsion ratio was between 2-3 per cent and cement around 1.5-2 per cent.

The RM500 water spray pump system has two flow-rate ranges, extending from 114 to 1,836 litres per minute, with the emulsion spray pump system operating at predetermined volumes of 114 to 757 litres per minute. With the RM500, Raubex was able to reclaim and stabilise the 300 mm sub-base in one pass.

The equipment team on the ETB section will comprise the Cat RM500, the latest generation Cat 140K motor grader, plus Cat CS76 single drum 20-tonne vibratory rollers.

Rotor and the sub-base In the 300 mm sub-base layer, the RM500’s universal rotor—equipped with its 200 carbide-tipped bits arranged in a chevron pattern—came into play in reworking these dense in-situ materials, providing the highest level of material pulverisation and gradation. A three-position mode switch

enabled the rotor depth to be controlled manually or automatically to a preset cutting depth to ensure that the engineering design was precisely met. Most often on the job the machine cut at a depth of 45 cm, including a 7 cm asphalt surface.

The RM500 mixing chamber features a heavy-duty hood with a large volume capacity to handle deep mixing. This ensures exact depth control, proper sizing and thorough blending of reclaimed materials.

The production requirements on Section 19 are substantial. Raubex’s RM500 was deployed for the sub-base component, amounting to 135,000m3, while the selected 300 mm layer comprised some 102,000m3.

Additionally, the new highway construction will require some 9 million litres of emulsion, 5,000 tonnes of cement, 114,000 tonnes of BTB, plus 530,000m2 of 35 mm AE2 asphalt premix and the equivalent for the 18 mm ultra-thin friction course (UTFC) overlay for the final riding surface.

Black-topping will be carried out by Raubex Limited division, Roadmac Surfacing.

The purchase of sub-grade materials from the crushing plant was not required because

CONSTRUCTION

the machine was able to turn the reclaimed gravel into sub-base material.

“Logistical planning is the key, as is the optimal deployment and utilisation of our earthmoving fleet,” explained van der Merwe. “In this respect one of the features we particularly like about the RM500 is its flexibility and all-round viewpoints to the front and rear. The ability to hydraulically shift the entire cab from side-to-side, for example, really speeds up the work rate as there’s no need to plan in half-widths, plus the mix is always visible from the operator station.”

This full width side-to-side feature enabled the operator to work up and down specific stabilisation sections without having to reverse back to the starting point of the works, maximising on-site productivity.

Completing the transformation “Efficient use of materials and machines will be interdependent on this contract and we have invested in the best possible technologies to meet our completion targets as we steadily transform Section 19 into a multi-lane world-class highway,” van der Merwe added. ■

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S12 ATR July 2012 Report G 02_Layout 1 21/06/2012 10:17 Page 78

EQUIPMENT

Construction A range of Essential breakers

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Less weight, more power The power to weight ratio and the efficiency of Atlas Copco´s latest generation of medium hydraulic breakers have been significantly increased, compared to their predecessors. Due to lower weight and higher efficiency, less hydraulic input power is required from the carrier while maintaining maximum impact performance. This allows smaller carriers to be used which results in lower investment cost for the carrier.

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S13 ATR July 2012 Report I_Layout 1 21/06/2012 12:19 Page 79

Ghana

MINING

Making inroads in West Africa Ghana’s mineral sector will be looking to grow its foundation of world class technical and professional skills, as the sector catapults the economy to unprecedented growth rates

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purred by the commercial production of crude oil since the end of 2010, Ghanaians have had a bumper year in 2011 when gross domestic product grew 13.6 per cent. It was opportune that SRK Consulting - which has been active for decades in Ghana and West Africa - opened an office in Accra last year.

Run by well-known local geological engineer, John Kwofie, the SRK Ghana office initially offered geotechnical services including rock mechanics, tailings engineering and civil geotechnics. Projects include work undertaken for international gold mining company, Noble Gold’s Bibiani mine and West African gold mining company, Avocet’s Inata mine.

More recently, the range of SRK’s traditional services - environmental, hydrogeological, mining engineering and resource geology, have been offered due to the demand for these services in the region. In line with the plan to continuously augment its services, the office engaged a local geologist in April 2012.

While the oil sector was the star of last year’s

John Kwofie, Country Manager, SRK Consulting, Ghana

“Mining and exploration are important contributors to our high growth rate,” said Mr Kwofie. “Gold has been our biggest foreign exchange earner, but our mining of bauxite, diamonds and manganese is also important and offer great opportunities.”

SRK's Accra office in Ghana

economic performance (it mushroomed over 200 per cent in 2011, although admittedly off a low base), the minerals sector remains vibrant.

Exploration and exploitation Mr Kwofie said that major occurrences of industrial minerals like limestone, silica sand and kaolin have been uncovered, and are currently only exploited on a small scale.

Further opportunities may exist in phosphate, chromium, nickel, copper, lead, zinc and uranium - deposits of which have been discovered through the recently completed Mining Sector Support Programme.

The exploration and exploitation process will need more local skills to be developed, said Kwofie. The SRK Ghana office, in line with the SRK business model, relies on local ownership and empowerment, combined with a stringent set of quality standards regulating all aspects of company performance.

“Our priority is to staff the practice with local experts to augment the existing consulting team,” said Kwofie. “It is vital that we nurture and advance our supply of well-trained and experienced engineers in our mining sector.”

The strong foundation of mining engineering skills in Ghana comes largely from the many cohorts of engineers in miningrelated disciplines that have graduated from the Kwame Nkrumah University of Science and Technology in Kumasi and the University of Mines and Technology at Tarkwa - and who went on to hone their specialities in mining operations within the region and abroad.

While building its own local capacity, SRK Ghana continues to draw on the group’s global network of skills to bring world-class expertise to Ghana’s mining and exploration sector. ■

African Review of Business and Technology - July 2012

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EQUIPMENT

Mining Powerscreen for crushing and screening

Powerscreen XH500

Powerscreen, which provides mobile crushing, screening and washing equipment, exhibited the XH500 impact crusher and the Warrior 2400 screen at this yearâ&#x20AC;&#x2122;s Intermat. www.powerscreen.com

Loaders built on Mega design A new range of Doosan wheel loaders has been launched, built on the design of the previous Mega range. The Doosan DL250A, DL300A and DL420A wheel loaders offer improvements for better performance, greater operator comfort, easier handling and serviceability, as well as increased durability. With bucket capacities ranging from 2.5 to 4.5 m3, the loaders are intended to meet a variety of material-handling

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African Review of Business and Technology - July 2012

S13 ATR July 2012 Report I_Layout 1 21/06/2012 12:19 Page 81

Conference & Exhibition 6 - 8 November 2012 Sandton Convention Centre Johannesburg, Republic of South Africa

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S13 ATR July 2012 Report I_Layout 1 21/06/2012 14:17 Page 82

EQUIPMENT/ CLASSIFIED

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African Review of Business and Technology - July 2012

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S13 ATR July 2012 Report I_Layout 1 21/06/2012 12:19 Page 83

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