ATR July 2014 Cover Spine_Layout 1 6/20/2014 5:17 PM Page 1
Europe €10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12
www.africanreview.com
July 2014
African Review of Business and Technology
P24
July 2014
Ghanaian commerce and economy
P37
Volume 48 Number 6
Markets and deals for diesel
generators
www.africanreview.com
50 years Construction:
Morocco’s booming aggregates market P58
Transport:
Road safety initiatives for Kenya P32
Business:
Investing in South African oil & gas P20
Serving business in Africa since 1964
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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 2014
P24
Ghanaian commerce and economy
T
his issue of African Review of Business and Technology primarily represents the economic significance of power, construction and mining. However, there are also articles addressing such areas as transportation and technological development. Beginning with business, from pages 20 to 26 there are articles on the development of South African oil and gas exploration, and the rebalancing of the Ghanaian economy through initiatives set on ameliorating the West African nation’s import/export trade profile. The technology section stays in Ghana, and over pages 28 to 30 offers analysis of solutions for data centres and at enterprise connectivity. For transport, this issue looks east, to Kenya, with a report on an initiative aimed at improving road traffic safety on page 32. The power section begins with an exploration of Nigeria’s complex energy infrastructure and requirements, followed by an overview of commercial developments in genset markets around the continent, between page 34 and page 48. From page 50 through to page 62, this issue addresses construction matters - including paints production in Kenya, asphalt manufacture in Nigeria, the operation of excavators in Morocco, and the building of a new airport to serve Zambia’s Copper Belt. Mining, from page 63 to page 66, rounds up the features, with a focus on diamond and gold mining, and measures towards improving safety underground.
P37
Markets and deals for diesel
generators 50 years Construction:
Transport:
Business:
Morocco’s booming aggregates market P58
Road safety initiatives for Kenya P32
Investing in South African oil & gas P20
Serving business in Africa since 1964
Main cover picture: Hatz Diesel Inset, bottom left: CCGT/SDLG Inset, top left: Emmanuel Yartey
Andrew Croft, Editor
Contents
REGULARS 04 Agenda:
14 Bulletin:
Public and private sector developments
68 Solutions:
Corporate presence at numerous African events
Minerals equipment and packaging technologies
P30 FEATURES 20 Business Commercial and technological developments in South African oil and gas exploration; and Ghana’s transition from an import-driven to an export-driven economy
28 Technology Data centre solutions and Internet service provision in Ghana; and protecting IT equipment from power surges
P52
32 Transport Road traffic safety initiatives in Kenya
34 Power Nigeria’s complex power infrastructure; and an overview of market developments for diesel generator businesses
50 Construction Standards of production of paints in Kenya; processes for asphalt manufacture in Nigeria; Morocco’s aggregates market; and the construction of a new airport to serve Zambia's Copper Belt
63 Mining Diamond recovery; gold extraction and processing; and measures to improve safety underground
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NEWS
Agenda / North Aluminium smelter capacities drive GGC downstream growth According to Azem Project Development and Frost & Sullivan, Aluminium production in the Gulf Co-operation Council (GCC) is estimated at about 3.5mn tonnes, which represents about seven per cent of global total output. Further, the aluminium downstream industries in Qatar have become important to suffice the demand from local and other international markets. With high quality and competitive products, the industry will contribute significantly towards achieving the industrial diversification of Qatar. Speaking about non-oil development in GCC countries, Venkatesan Subramanian, vice president and global leader, metals & minerals, at Frost & Sullivan, said, “Major Governmentbased oil companies and investment bodies are venturing into the Aluminium industry in the GCC to diversify and take advantage of the low cost utilities. This industry can further boost the GDP and offtake the risk put forth by diminishing oil reserves in the region.” The total investments in Qatari aluminium downstream projects are about US$329.6mn, with production capacity close to 260,000 tonnes per year for different types of aluminium products. The total demand for such products is more than 2.8mn tonnes in the Middle East and North Africa (MENA).
Fast-track plant construction in Egypt
A
nsaldo Energia has been working in Egypt since 1983, building both substations and hydraulic/conventional steam power stations. In March 2011, the company was awarded a turnkey (EPC) contract for the fast-track supply of four AE94.2 gas turbines rated 150MW for the 6th October Power Project (600MW open cycle). Ansaldo Energia completed the project according to a very short timetable of just 14 months. In June 2013, Ansaldo Energia was awarded the 6th October Power Project Extension contract worth more than US$327mn by the Cairo Electricity Production Company, a subsidiary of the Egyptian Electricity Holding Company.
Precise and powerful products for Moroccan land management There were fuel efficient, low SIAM was well-attended, with much interest in fuel efficient, emissions technologies and low emissions technologies and precision farming solutions advanced precision farming solutions at the SIAM 2014 Moroccan International Agricultural Show, held recently in Meknès. Established equipment importer SOMMA presented New Holland’s TD5 tractor, which was launched at last year’s edition of the show and is now available with factory fitted loader. Also exhibited was the new TD4040F orchard tractor, the TT, TD and TD5 range of tractors, and a BC5000 baler. The main draw, however, was the precision land management (PLM) display module, illustrating the benefits of advanced farming technology. Efficient farming with precision land management New Holland’s PLM specialist Ezio Garesio, together with a representative from the brand’s technological partner Trimble, made presentations every day of the show. They demonstrated the features and benefits of the guidance solutions, the PLM software to analyse yield data and fine tune inputs, and the telematics systems to synchronise in-field working between machines. Visitors to the stand could also view the informative PLM display module and learn more about the ways New Holland’s advanced precision farming technology can help them maximise their farm’s efficiency and minimise costs.
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African Review of Business and Technology - July 2014
The 6th October Power Project Extension is located 25 km from Cairo
The 6th October Power Project Extension is located inside the fenced-off area around the High Voltage Lab, 25 km from Cairo. The plant is situated next to the existing one, which was completed according to a very short contract timetable in 2012, with warranty period expiring in July 2014. This rapidity was one of the main factors in the customer’s decision to renew its confidence in our company. The new 6th October Power Project Extension will offer the possibility of completing the combined cycle plant in the future by adding the steam turbine generator and air condenser system. With this new order, Ansaldo Energia confirms its North African leadership in the supply of open cycle plants, with a total of twenty seven units delivered in the area since 2007. www.africanreview.com
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NEWS
Agenda / East REA highlights rural electrification According to Uganda's Rural Electricity Agency (REA), the country has had increased coverage for both low voltage (LV) and medium voltage (MV) lines, with a total of 6,200 km of MV power lines and 3,500 km of LV reticulation networks built in its attempts to extend access to electricity to rural areas. The agency adds that a further 3,500 km of MV power lines and 825 km of LV are under procurement, while many other projects supported by several development partners have been implemented. The Ugandan government recently launched what it dubbed "Vision 2040" whereby it plans to have universal access of electricity by all Ugandans.
Officials at the country’s Ministry of Energy say electricity has, for a long time, been constrained by supply - and that, by the year 2000, rural electrification was at a dismal one per cent, although the trend has improved and rural connections to the national grid have gone up to seven per cent, with national coverage now at 15 per cent. REA says, in its most recent review, that to operationalise Uganda's Vision 2040 further, it has developed a Rural Electrification Strategy and Plan (RESP) 2013-2023 outlining its tenyear agenda to accelerate electricity access while ensuring programme efficiency and sustainability. "The plan proposes sub-dividing the
country into grid service territories to enable effective service delivery. Under this initiative, the country has been divided into 13 service territories based on economic viability and geographical location," it notes, adding that it has also developed initiatives to enable increased connection to electricity. The Agency cites the Output Based Aid (OBA) project funded by the Global Partnership on Output Based Aid (GPOBA) through the World Bank (IDA), and the European Union (EU) through KfW, the German government-owned development bank. Geoffrey Muleme
Energy-efficient facility preserves Malawian fruit
A
newly-established fruit processing plant in A Ditec Alimax high speed roll up door, from Apex Strip Curtains & Salima, 90km from Lilongwe in Malawi, is Doors, has been installed at a fruit processing plant in Malawi setting the trend by being a 100 per cent renewable energy international standard processing facility. The plant’s team visited and worked with over 100 processing facilities around the world, to ensure a design driven by the highest possible quality standards. In order to produce high-quality purees and juices, the designers focused on processing capabilities as well as adherence to international hygiene standards. The resultant facility comprises a structure that is constructed from high grade steel and blockwork and is fully sealed from the elements. The inclusion of a Ditec Alimax high speed roll up door from Apex Strip Curtains & Doors was in line with this focus on quality control. The plant will initially focus on varieties of mangoes, pineapples and bananas demanded by the major fruit drinks market, and once established it will produce and process in excess of 100,000 Mt of fruit per annum. rapidly open and close, thus ensuring minimal changes in Apex Strip Curtains & Doors is the official distributor in southern temperature and humidity,” Wim Dessing, managing director of Apex Africa for the Italian-manufactured Alimax range of high speed Strip Curtains & Doors said. doors and received the contract to supply the 3.6 metre wide, 3 The fruit processing facility comprises a 10,000 m2 structure with metre high roll up door from the consulting engineers for the reception area, ripening, processing, packaging, storage and project’s EPCM contractor. dispatch areas. Apex Strip Curtains was requested to provide a high “Alimax roll up doors are very popular in the food and beverage speed door for fitment between the packaging and storage area. processing and packaging industries because of their ability to
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NEWS
Agenda / South A decade of SA logistics costs info South Africa’s past decade of logistics costs and efficiency is reported in the 10th State of Logistics survey for the country, published by the Council for Scientific and Industrial Research (CSIR) in collaboration with Imperial Logistics and Stellenbosch University. The structure of the publication has remained similar over the 10 years. This year’s survey thus looks back over a decade of measuring logistics costs while for the first time providing a forecast of the current calendar year’s costs. In 2012 the absolute cost of logistics was R393bn (US$37.576bn) (showing that the correctness of the estimate for 2012 published in the 9th State of Logistics survey was satisfactory. Logistics costs are estimated to have been R423bn in 2013 and are forecasted to be between R456bn and R470bn in 2014, depending on fuel inflation. Logistics costs as a percentage of GDP have remained at a stable level of 12.5 per cent for 2011 to 2013 and are forecasted to show a slight increase in 2014 depending on the magnitude of fuel inflation. A deeper investigation of individual cost components and cost drivers show that the increase in logistics costs is perhaps not so much the result of deteriorating efficiency in the industry but the disproportionate growth in cost drivers – especially fuel. The survey reports that South African supply chains have moved beyond survival to optimised mode, where costs, inventories and lead times have been minimised within individual supply chain functions. End-to-end integration of supply chain functions is the next major shift required in South Africa to make business more customer-centric and competitive. An integrated supply chain approach unlocks logistics efficiencies that were previously unavailable, as illustrated by Nissan SA’s recent successes. The public sector needs to create an enabling environment for effective logistics. Appropriate logistics infrastructure and a greater drive towards intermodalism are key enablers to reduce costs and improve performance in South Africa’s logistics industry. Investment in rail, road, port, pipeline and airport infrastructure continues to be a high priority for the country with hundreds of billions of rand invested annually. “As is the case globally, funding for mega infrastructure projects is a significant constraining factor, thus public private partnerships (PPPs) are becoming essential to realise the country’s ambitious infrastructure expansion plans,” according to the survey. The country’s national road network remained in a good condition between 2009 and 2013 under the jurisdiction of SANRAL. Unfortunately, many provincial road networks have deteriorated considerably – partly due to the accelerated wear caused by trucks carrying railfriendly freight. The survey states that by focusing first on upgrading ‘poor’ and ‘very poor’ sections to a ‘fair’ condition will save more vehicle operating costs than upgrading ‘fair’ roads to a ‘good’ or ‘very good’ condition. Smart Trucks, a product of the performance-based standards (PBS) initiative driven in South Africa by the CSIR, is a road transport project that holds great promise for increasing transport efficiency in tandem with modal shift imperatives. Demonstration projects have shown average improvements in fuel efficiencies of 14 per cent along with a drastic reduction in road wear and larger payloads which result in fewer trips. “The global economic situation and rising cost drivers spell out increased competition and tighter margins. Thus driving down the cost of logistics, making South Africa more competitive and capitalising on growth potential in Africa and global commodity markets will require no less than bold steps forward,” states the survey. Greater supply chain integration, modal shift, transport efficiencies and successful PPPs will require proactive effort, courage and innovation from both the private and public sectors.
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African Review of Business and Technology - July 2014
Drilling underway at Jangamo, Mozambique
S
avannah Resources has commenced its 2014 drilling programme at the company’s 80 per cent owned, 180 km2 Jangamo heavy mineral sands project, located in southern Mozambique. Savannah’s CEO, David Archer, said, “With the commencement of the field season in Mozambique, we are upping the tempo of activities with an extensive drill programme over our flagship Jangamo mineral sands project. The programme has been designed to expand on the highly positive results from the 2013 drill programme and test the prospectivity of the two main morphological zones identified, which are thought to be prospective for mineral sands. We believe that the project has the potential to generate significant value for the company and its shareholders and look forward to reporting on this drilling programme and results in due course as we build towards defining a potential JORC compliant resource by the end of 2014.’’ The drilling programme The project is covered by a series of north-east trending Quaternary dunal and fluvial deposits, many of which have confirmed heavy mineral mineralisation. The area has three morphological zones, composed of two inland dunes (red sands) which are the highest areas, separated by a low lying area (alluvial sands) with different sedimentary characteristics. Approximately 4,000m of drilling has been planned and will focus on expanding the high grade areas of heavy minerals identified during the 2013 drilling programme and defining the stratigraphy and prospectivity of the red dune sand systems which cover extensive areas throughout the tenement. www.africanreview.com
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NEWS
Agenda / West Orange backs new Niger business After the CTIC incubator in Senegal and the Ebène project in Mauritius, Orange has backed a start-up incubator in Niger. Orange Niger and its local partners have helped to set-up CIPMEN, a small- and medium-sized business (SME) incubator designed to encourage the creation of new and innovative companies in the country. CIPMEN was designed to support small- and medium-sized enterprises from their launch phase until they reach a level of maturity and turn enough profit to fend for themselves in the long-term. The purpose of CIPMEN is to help innovative SMEs grow on a market where many companies fail to see the light of day, and to bridge the gap between the informal sector and the larger national and international companies. Niger offers few suitable support mechanisms for upcoming businesses, despite the central role that companies play in creating jobs for young people, helping to form a middle class, and in creating and redistributing wealth. The incubator will help companies in future-oriented sectors such as Information and Communication Technologies, renewable energy and the environment. The project, initiated by Orange, is a pilot programme which should enable the launch of other regional initiatives in Niger.
PenCom’s African pension summit Nigeria is hosting the World Pension Summit ‘Africa Special’, which brings together leading players from Africa’s pension industries, as well as key figures from across politics, business and finance to exchange expertise and increase international cooperation on the continent. Held in Abuja, the event also marks the 10th anniversary of the enactment of the Pension Reform Act 2004, and the formation of the National Pension Commission (PenCom) as Nigeria’s regulator for pension matters. Since its formation, PenCom has worked to create a more conducive regulatory framework for Nigeria’s pension sector, which – with in
excess of US$23bn of pension funds under management – will play a key role in Nigeria’s economic development. Chinelo Anohu-Amazu, acting director general of PenCom, said, “We are delighted to bring the World Pension Summit to Africa. A number of African nations are experiencing strong economic growth supported by the rising investment in natural resources and robust private consumption. As a result, the role of the pensions industry in providing a stable consumer savings vehicle for Africa’s growing middle classes, and the investment of capital from its pension funds, is of increasing significance.”
Caverton takes AW139 helicopter Caverton Offshore Support Group - which provides marine, aviation and logistics services to local and international oil and gas companies in Nigeria - has taken delivery of a new Agusta Westland AW139 helicopter, the seventh in its fleet. As part of the company’s earlier stated plans to embark on fleet expansion, the new aircraft adds to the growing fleet of Caverton’s Agusta Westland helicopters thus making it the largest fleet in sub-Saharan Africa. The new helicopter is dedicated to the Shell Petroleum Development Company contract, which the company won in 2010 through a competitive bidding process. The aircraft was manufactured in Italy and is pre-equipped with a forward-looking infra red (FLIR) camera, which allows airborne pipeline surveillance to be carried out and images streamed in real time to base stations. It also has thermal imaging systems which are used for surveillance and threat detection.
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African Review of Business and Technology - July 2014
High iron ore grades from Mebagan in Gabon
A
ccording to Ferrex plc, high iron values have been returned from rock samples collected as part of the mapping programme in February 2014 to increase the mineralised area at its 309 sq km Mebaga DSO Iron Ore Project in northern Gabon. Of these, 13 rock samples collected from float blocks and rare outcrops of iron-enriched Archean banded iron formation (BIF) at Mebaga were submitted to the Set Point laboratory facility in Libreville for preparation, with pulps freighted to Set Point in Johannesburg for analysis. Samples were assayed using the industrystandard technique for iron ore of lithium borate fusion with XRF finish. Ferrex managing director Dave Reeves said, "At the beginning of the year we were delighted to report that mapping activities undertaken in February 2014 had discovered two new areas of high grade iron ore mineralisation at Mebaga, 7km east and 3km west of the area we drilled in 2013. The assay results from rock samples taken from these areas confirm the potential for additional extensive significant DSO grade iron ore mineralisation within the licence area. “Looking ahead for the project, the next drill campaign, which will target extensions to the previously defined mineralisation and the west ridge, is expected to commence in early Q3 2014. In addition, we have recently received approval from the Gabon Ministry of Economy for the proposed Anglo American and Kumba transaction and believe that due diligence on this transaction is entering its final stages.” www.africanreview.com
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NEWS
Events / 2014 August 3-7
UIA Congress Durban, South Africa www.uia2014durban.org 13-16
Ecoafribuild Johannesburg, South Africa www.ecoafribuild.co.za 13-16
Interbuild Africa Johannesburg, South Africa www.interbuild.co.za
September
3-5
Agrifoodtec East Africa Nairobi, Kenya www.agrifoodteceastafrica.com 9-12
East Afripack Nairobi, Kenya www.eastafripack.com 10-11
Banking & Mobile Money COMESA Nairobi, Kenya aitecafrica.com 11–14
Business Opportunities and Franchise Expo (BOFE)
October 1-3
Zimbabwe Mining and Infrastructure Indaba Harare, Zimbabwe zimminingindaba.com 7-9
Trans Africa Johannesburg, South Africa www.transafricaexpo.co.za 13-17
AfriMold
Johannesburg, South Africa www.thebereed.co.za/bofe
Johannesburg, South Africa www.afrimold.co.za
15-19
21-22
electra mining
MENA Mining
2-4
Johannesburg, South Africa www.electramining.co.za
Dubai, UAE www.terrapinn.com
Propak West Africa
16-17
28-30
Lagos, Nigeria www.propakwestafrica.com
NigeriaCom Lagos, Nigeria nigeria.comworldseries.com
Architects aim to revive botanical gardens Engineering, management and specialist technical services firm Aurecon recently acted as overall programme manager for an architectural design competition focused on arriving at a winning The Lowveld Botanical Gardens in Nelspruit, South Africa design for the planned upgrade of Entrance 2 at the South African National Biodiversity Institute’s (SANBI) Lowveld National Botanical Gardens in Nelspruit, Mpumalanga. “The competition formed part of the on-going commemoration of the SANBI’s centenary anniversary and was endorsed by the South African Institute of Architects (SAIA) and the Mpumalanga Institute of Architects (MPIA),” says Louwrens Vermaak, Aurecon project manager. Judges were looking for a vibrant new design that would replace the existing entrance facilities with a single signature entrance complex. Additionally, the new design needed to have an authentic, contemporary character that would incorporate existing plants or trees in the surrounding area. “The competition focused on identifying a design that would lend the gardens its own unique brand identity that would attract additional visitors to the gardens,” says Vermaak.
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Power Nigeria Lagos, Nigeria www.power-nigeria.com
30 nationalities at AB7, SAITEX Visitors from 30 nations attended the 2014 editions of Africa’s Big Seven (AB7) and the Southern African International Trade Exhibition (SAITEX), which together represent the single biggest food & beverage and business opportunities expo on the African continent. AB7 and SAITEX both took place late-June at Gallagher Convention Centre, Midrand in Johannesburg. Show organiser John Thomson of Exhibition Management Services cites stagnating first-world economies and declining markets as drivers for global companies to explore Africa as the ‘New Frontier’ for business. And Africa’s Big Seven is an ideal business platform for Africa’s food and beverage industry. “The show has become an effective platform for hooking up prospective suppliers, customers and partners interested in doing business in Africa,” Thomson said. www.africanreview.com
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NEWS
Bulletin / Events AfriMold joins forces with SA Automotive Week
developing entrepreneurship in South
include two new products demonstrated
Africa and is beginning to expand its reach
for the very first time – the QH441 and
Two manufacturing trade shows; South
on the continent, with trade representatives
QS331 mobile cone crushers, both featuring
African Automotive Week (SAAW) and
from several African countries looking to
Sandvik’s new hanging screen.
AfriMold, will be co-hosted between 13-17
bring contingents of both exhibitors and
October 2014 at the Gallagher Convention
visitors to this year’s show; the 2014 BOFE
Centre in Midrand, Johannesburg, South
expo will take place from 11-14 September
Africa; South African Automotive Week
at the Coca-Cola Dome in Northriding,
African ministers address financing for mine development
working group chairman and National
Johannesburg, South Africa.
Government ministers from Angola, Ethiopia, Ghana, Lesotho, Mali,
Association of Automotive Component
Mozambique, Tanzania and Zambia,
confirmed the co-hosting arrangement was
Solar firm highlights affordable electricity at SE4ALL launch
a logical step that was in the interest of the
Mobisol, which provides solar
value through mining; discussions have
industry, saying, “The events complement
electrification through microfinanced
centred on Africa's requirement of almost
each other and their co-habitation will
mobile technology, participated in the
US$100bn each year to improve the
boost value to industry participants and
recent launch of the Sustainable Energy for
continent's infrastructure, against the fact
create an even more powerful showcase of
All (SE4ALL) Decade by showcasing its
that only half of this amount is currently
South Africa’s manufacturing capability,.’
sustainable solar electrification model at
being spent on roads, railways and port
and Allied Manufacturers of South Africa (NAACAM) director Robert Houdet
meeting in London in the UK, are working to support an initiative to create shared
the official Africa launch of the initiative in
facilities - with the African Development
Atlas Copco’s hydraulic attachments at Hillhead
Rwanda, where a 200Wp Mobisol solar
Bank appealing for investors, hoping to
home system and bright LED lights have
raise US$3bn in a new infrastructure fund,
A range of versatile and cost-effective
been donated to and installed at Gicumbi
called Africa50.
construction and quarrying equipment
Health Centres in the rural north of the
produced by Atlas Copco and shown at
country; an official field trip to the Gicumbi
Hillhead, a biennial British exhibition for
Health Centres promoted a focus on the
Export workshop returns highlight trade at SAITEX
global enterprises, included everything
importance of energy to women and
Re-introduced at the 2014 edition of SAITEX
from handheld pneumatic tools to the
children’s health, with Mobisol Rwanda staff
in June, the Southern African International
company’s large SD2500WS paver; one of
demonstrating Mobisol’s electrification
Trade Exhibition, an import/export
the key exhibits, the versatile and efficient
model on site, contributing to the
workshop held at the Gallagher Convention
down-the-hole FlexiROC D55 drill rig, is
improvement of the facilities’ premises with
Centre in Johannesburg, South Africa, was
just as suited to quarry blast hole drilling
the Mobisol solar home system and over a
arranged to cover the fundamentals of
as for mining operations, offering
dozen much-needed lights in the maternity
trade for beginners - and to facilitate
productivity and flexibility beyond
room, pharmacy and other locations.
discussion of proper planning and execution, efficiency and compliance,
conventional quarry drill rigs, which can
optimisation of operating procedures,
DTH hammers, well-known for their high
Sandvik shows total solutions for construction and mining
performance in terms of speed, reliability
Many product launches and live
marketing, and training and support; “This
and longevity.
demonstrations of mobile crushing and
workshop is an essential and invaluable key
be equipped with a range of Atlas Copco
incentives, finance, logistics, markets,
screening equipment offered evidence of
to entering the world of international trade,
Business opportunities & Franchise Expo reaches Africa
Sandvik’s commitement to the global
and provides a rare short-cut to gaining the
quarrying and construction industry, with
required knowledge quickly and easily,” said
Now in its 21st year, the Business
the firm emphasising areas of expertise and
Stephen Oehley, director of South African
Opportunities and Franchise Expo (BOFE),
service that transcend the traditional
Trade Promotions, organiser of the
presented in partnership with Eskom, has
supplier–customer dynamic; the firm’s most
workshop.
contributed significantly toward
recent innovations, on show at Hillhead,
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NEWS
Bulletin / Events Philips roadshow highlights business interest in Morocco
Dedicated to delivering product portfolios for packaging
the key issues faced by East Africa’s
Royal Philips recently unveiled a stunning
Held next 2-4 September 2014 in Lagos,
its two-day conference programme, on 10-11
lighting makeover of the historic, Wilaya
Nigeria, Propak West Africa presents solutions
September, provides a valuable educational
building in Casablanca, Morocco, as part of its
and services for packaging, printing and
forum for the financial services sector,
fifth consecutive pan-African Cairo to Cape
plastics in the West African region, providing
updating CXOs and IS managers on latest
Town roadshow, with its latest range of LED
an international platform for industry
international developments in payment
luminaires installed, providing a palette of
suppliers to promote their portfolios to senior
technologies, best practices in IT project
16mn colours to highlight the Wilaya’s features
buyers; the event runs in conjunction with
deployment, and latest trends in customer
whilst allowing energy savings of up to 80 per
Print Expo West Africa, Pro-Plas West Africa,
service delivery.
cent over an estimated lifetime of up to
Pro-Label West Africa, Food Processing West
100,000 hours (compared to 12,000 hours
Africa, and Digital Printing West Africa.
Would you like to see 38,000 mining customers?
An international approach to agriculture at AgriFoodTec
There were 38,000 people at the biggest
AgriFoodTec East Africa, which is scheduled
electrical trade show in southern Africa in
for 1-3 September 2014 in Nairobi, Kenya, is a
2012, a huge number of potential customers
trade fair for the agricultural, food and food
in one place, and a persuasive reason to
processing sectors, representing the solutions
exhibit at Electra Mining Africa 2014; this
for food and food processing sectors, which
premier showcase brings new products to
can play a significant role in economic
market with resounding success - with on-site
development; the host country Kenya is an
sales, plenty of sales leads and brand visibility
ideal location for this inaugural show, offering
delivering a great return on investment for
committed to significantly expanding its
access to the East African Community, an
exhibitors and providing a world-class event
business footprint in Morocco, where it has a
intergovernmental organisation
for visitors keen to see the latest in products,
regional office, by addressing local needs with
encompassing 135mn people, to which the
services, technologies and trends across the
meaningful innovations throughout the
emerging countries of East and Central Africa
mining, construction, industrial, power
Maghreb; and the company is making
such as Tanzania, Uganda, Burundi and
generation and machine tools sectors.
substantial investments in hiring local talent,
Rwanda belong.
with conventional lighting solutions); Philips is Wilaya City Hall in Casablanca, Morocco
brand building and opening a new office in
increasingly dynamic financial services sector;
mining, industrial, machine tools and
World Economic Forum promotes skills in West Africa
broaden its reach and expand the range of
East African businesses get ready for East Afripack
product offerings and customer services.
East Afripack is a key exhibition for firms
launched Africa Skills Initiative, a
involved in processing, packaging and
multistakeholder programme that brings
Durban set to host global event for architecture
converting in the East Africa region;
together private and public sector leaders to
scheduled to be held in Nairobi, Kenya, 9-12
shape national and regional skills and
Taking place 3-7 August, UIA Durban 2014
September 2014, the show offers a unique
employment policies in an effort to increase
Congress is expected to attract about 6,000
opportunity to get in touch with companies
competitiveness and labour productivity and
delegates from around the globe with a
seeking technological upgrade in a rapidly
promote inclusive economic growth; the
strong local contingent in attendance;
expanding area.
Africa Skills Initiative uses the Forum’s Human
Casablanca in the second half of the year to
architects, designers, urban planners and
The World Economic Forum recently
Capital Index, which provides an overview on
Models for banking and superior financial services
how well countries are leveraging their
discourse on the theme, ‘’Architecture Otherwhere’’ - with the sub themes ‘Resilience,
Now entering its eighth year as a leading
that are prepared for the demands of
Ecology and Values’ also under scrutiny.
banking forum for the region, AITEC Banking
competitive economies.
place makers will convene over a week-long
human capital and establishing workforces
& Mobile Banking COMESA 2014 addresses
16
African Review of Business and Technology - July 2014
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NEWS
Bulletin / Events The challenges in civil aviation quality management
countries that have reported as having
African countries are reported to be still
Joseph Mukabana, WMO director of the
facing challenges in compliance with the
regional office for Africa told the AMCOMET
requirements on quality management
meeting that the Nairobi declaration which
systems of the International Civil Aviation
established the body requested that all
organisation (ICAO), according to Michel
necessary steps be taken to ensure that
Jarraud, secretary general of the World
National Meteorological Services in Africa
Meteorological Organisation (WMO),
meet the ICAO requirements regarding the
attending the second bureau of the African Ministerial Conference on Meteorology
commenced assessment," Jarraud said. Dr
quality management systems whose deadline
Michel Jarraud, WMO secretary general (second from right) says African countries still need support in civil aviation quality management mechanisms
was November 2012.
(AMCOMET) in Harare, Zimbabwe. Jarraud
"However, it will be reported that many
said out of 17 members of the Agency for
system implementation," Jarraud said.
African countries have yet to meet the
Aerial Navigation Safety in Africa and
Jarraud added that training activities are
deadline," Mukabana said.
Madagascar (ASECNA), only seven have
being implemented. However, he added that
The ministers at the Nairobi meeting urged
recently undergone external audits and are
the deadline for compliance with
the WMO and the African Union
working on the non-conformances identified.
competency assessment for personnel
Commission to support the African National
"Others have started the process and in total
serving international air navigation was 1
Meteorological Services meet the ICAO
11 members are certified with a number at
December, 2013.
requirements regarding quality management
advanced stage of the quality management
"The deadline is rather limited with only a few
systems and competency assessments.
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African Review of Business and Technology - July 2014
17
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NEWS
Bulletin / Events Minister opens prestigious water and construction show
digital library they created as part of their
In Accra, Ghana, at water and construction
School in Samburu County. The library gives
NOC Libya brings oil companies together in London
trade show Water Africa and West Africa
more than 2,000 learners and 72 teachers at
The 3rd New Libya Oil & Gas Forum gathered
Building & Construction 2014 - held 2-4 July -
the school access to digital content for better
a delegation of over 200 executives at the
over 80 exhibitors attend to display their
learning and teaching. In Uganda, MTN
end of May 2014 from the National Oil
goods and services to the West Africa market
volunteers setup community ICT Hubs in the
Corporation Libya, governmental officials,
- and to Ghanaians, in particular, with Ghana’s
Central, North and East Regions, with
and international oil companies operating in
Minister of Water Resources, Works & Housing,
computers, Internet connectivity, electricity,
the country and their service providers.
the Honourable Collins Dauda, as official
furniture and Microsoft-certified training. MTN
Co-organised by Oliver Kinross and IRN, it
guest of honour. The seminar programme was
employees contributed towards the purchase
was held in London, in the UK. Having been
designed specifically to represent the most
of the necessary ICT and associated
hosted successfully under the patronage of
important topics of the day facing providers
infrastructure, as well as the refurbishment of
the Libyan NOC for the two previous years, in
of infrastructure for the water and sanitation
existing structures housing the hubs.
Rome (2012) and Istanbul (2013), the meeting
sector and organisations in the building and
As with their colleagues in Uganda, MTN
proved again to be a key platform to facilitate
construction industry - with key support from
volunteers in South Africa raised funds for their
high-level discussions. The event focus was
the Ghanaian Government. Presentations
Y’ello Care activities. Some of the fundraising
on the oil and gas business in the country,
during sessions and at the seminars,
activities included auctions, quiz competitions
highlighting investment opportunities, future
alongside exhibition support, has come from:
and a half marathon. As part of their
development prospects, and plans for both
Ministry of Water Resources, Works and
programme, MTN employees in South Africa
the upstream and downstream sectors.
●
Y’ello Care activities at the Maralal Primary
Housing.
helped refurbish a library at the Diepsloot
Onshore and offshore operations were closely
●
Ghana Water Company Limited.
Combined School, north of Johannesburg. The
examined by the key on field companies BP
●
Water Resources Commission.
school also gained a computer lab. In West
Libya, Nafusa Libya, Shell and Oando.
●
Water Research Institute (CSIR).
Africa, MTN Cameroon employees contributed
Organisations in attendance at this year’s
●
Community Water and Sanitation
funds towards the building of classrooms for
meeting included: Shell, BP, Total, Libya
Agency.
Central African Republic refugee children - and
Holdings Group, Oando, Shell
●
Ghana Institution of Engineers.
provided learners with educational material.
International Trading and Shipping
●
Ghana Institute of Architects.
The employee volunteers in Cameroon also
Company, Crosco, OMV, Sipex Libya,
●
Ghana Institution of Surveyors.
partnered with the UNHCR, Plan Cameroon and
Technip, BP Libya, Total SA, BB Energy
●
Ghana Real Estate Developers
Ministry of Basic Education to introduce
Group, British Arab Commercial Bank Plc,
Association.
underprivileged children at six social care
Shell International Upstream, Yokogawa
Commercial endorsement to complement
institutions to the use of ICT and social media.
Middle East & Africa, Occidental Libya Oil
public sector support has been forthcoming
To ensure they remain connected beyond the
and Gas, Petrofac International Limited,
from: Interplast, Inefly, Nesstra Ghana, ABB,
duration of the programme, each centre was
Statoil, Total E&P Libya, Egyptian Drilling
Hilti and Suvinil Paints, DEM and Wacker.
equipped with a computer and Internet
Company, GE Oil & Gas, OMV Pakistan,
connectivity. In Guinea Bissau, MTN
Statoil, ExxonMobil, Gazprom Neft, and
MTN programme promotes digitisation of education
employees rolled up their sleeves and
Hess Corporation Libya. The forum was
assisted in the construction of community
sponsored by IESCO, Libya Holdings,
For the third consecutive year, MTN
schools in Bor and Camura. Employees
Serinus Energy, NRC, Veritas Academy,
employees united under the theme of
helped the communities with construction
TransSahara Group, Melron Endustri,
“Investing in education for all”, to cast the
materials and also carried out some voluntary
IHRDC, BACB, and Edgo - with Oando Group
spotlight on the digitisation of teaching and
work in the construction. MTN employees in
as a gold sponsor. The meeting was also
learning during the company’s annual
Ivory Coast focused on improving access to
supported by the Libyan British Business
employee volunteer programme, 21 Days of
education in primary schools. They built,
Council, the Middle East Association, the
Y’ello Care, held 1-21 June.
refurbished and supplied equipment to
Italian-Libyan Chamber of Commerce and
In Kenya, MTN Business employee volunteers
schools in Abidjan, Tikakro and San Pedro.
Cedigaz.
oversaw the supply of connectivity for a
18
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BUSINESS
South Africa
An unprecedented interest in hydrocarbons The most recent commercial and technological developments affecting offshore oil and gas exploration in South Africa
A
frica’s untapped oil and gas and technological advances have aroused unprecedented interest in hydrocarbons off the coast of South Africa recently. The tough physical conditions of the areas that oil and gas firms want to explore and controversial moves by the government on the regulatory side mean that players in the industry have their work cut out, however. Interest in South Africa’s offshore hydrocarbons has mushroomed since the discovery of hydrocarbons in the Karoo Basin, a 600,000 sq km region in Central and southern South Africa, just a few years ago. In 2009, exploration of the area got underway. Hydrocarbons firms are also ramping up activity in the Orange Basin, a 37,000 sq km area off the west coast of the country. There has been an influx of big players to the sector in the last couple of years. Shell has been the most upfront about its desire to explore and exploit shale gas reserves in the Karoo. At the end of last year, the company said it was willing to invest US$1bn in the country to this end. In 2012, Ireland-based Falcon Oil & Gas announced it had made an agreement with Chevron to tap exploration opportunities in the Karoo. In February 2014, fellow energy giant Total announced its intention to spend millions of dollars on both exploration and drilling in the country. The French hydrocarbons firm has a shared exploration permit with Canadian Natural Resources applicable to South Africa’s southern coast. Drilling is due to commence
Technological advances are part of the reason why hydrocarbons companies are looking afresh at the country’s potential 20
There have been advances in deepwater drilling technology which promise to make exploration of South Africa’s offshore reserves an easier task
later on in the year, according to Christian des Closieres, Total’s South Africa CEO. Total is interested in obtaining a further exploration permit, something it is currently in talks with the government about. Meanwhile, ExxonMobil announced in March that it intends to carry out three years of offshore exploration from early 2015 across an area spanning 50,000 sq km, from the Eastern Cape to just north of KwaZulu-Natal. At times the area in question stretches as much as 400km away from the coast. Others have entered South Africa too. In August 2012, Cairn India, which operates India’s largest onshore oil field, came to a joint agreement with PetroSA to explore for oil and gas in the 20,000 sq km Block 1 of the Orange Basin. In the same month, Anadarko also signed a deal with PetroSA to explore Block 5/6 and Block 7 off the coast of South Africa. In November 2013, Sasol inked an exploration deal with PASA to explore
African Review of Business and Technology - July 2014
offshore Zululand and Durban basins. In February of this year, Sasol also said it was keen to get involved in the shale gas industry in the Karoo Basin again. Untapped potential Technological advances are part of the reason why hydrocarbons companies are looking afresh at the country’s potential. They include new seismic imaging techniques. These are superior to conventional seismic approaches in that they use all of the information that seismic data provides, which ultimately gives hydrocarbons companies more detailed information before drilling a well. There have also been dramatic advances in deepwater drilling technology over the last few years, which promise to make exploration of South Africa’s offshore reserves an easier task. There is now the technology to drill at as much as a 3,000-metre water depth. Over the last 30 years, drilling capacity has improved about www.africanreview.com
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BUSINESS
South Africa
tenfold. How individual oil and gas companies will deploy new technology in South Africa is already starting to emerge. For example, Total plans to deploy technologies including robotic submarine scanning, three-dimensional sonar surveys, and sediment core sampling. Elias Pungong, Africa oil and gas sector leader at Ernst & Young, also thinks that rising interest in Africa’s gas reserves as a whole also plays a role. “The East African gas jamboree is a game changer – there have been huge discoveries in Mozambique, Tanzania and Ethiopia,” he says. Alwyn van der Lith, director of energy and natural resources at KPMG, also thinks that Mozambique in particular has been influential. “Gas discoveries in Mozambique have resulted in major companies relooking at this region and linked to this is the expectation that there should be oil and gas offshore in South Africa, if there is gas in Mozambique and oil and gas in Botswana,” he says. The imminent activity in the hydrocarbons sector is a big deal for South Africa. The industry has been neglected for decades. There was limited exploration of the areas using conventional techniques in the 1960s and 1970s but efforts proved less than fruitful. Apartheid also prevented hydrocarbons exploration from taking off, according to Mansour Mohammed, a sub-Saharan Africa research analyst at Wood Mackenzie. “South Africa was not attracting a lot of investment during that era. At that time there was also more than enough interest elsewhere in sub-Saharan Africa such as Angola and Nigeria. New acreage in South Africa just was not on the agenda,” says Mohammed. Regulatory challenges Hydrocarbons companies moving into South Africa face considerable uncertainties and challenges. A big issue is regulation. The South African state is set to make controversial changes to legislation that oil and gas firms staunchly oppose. “Regulatory issues are the biggest concern. It’s a challenge for companies operating in South Africa,” says Mohammed. A new Mining Petroleum and Resources Development Act, which is currently under public consultation, is due to come into force soon, replacing the existing 2002 Act. Oil companies have criticised the proposed Act for giving less than generous terms for hydrocarbons exploration and operations that are ultimately high risk. They also argue that the Act is too standardised, with blanket rules being applicable to mining and hydrocarbons activities across the board, from coal mining to shale gas fracking. Furthermore, there is concern that the government may be taking advantage of
22
The US Energy Information Administration estimated that the Karoo held 485 thousand cubic feet (tcf) of technically recoverable natural gas (Image: Ed Schipul)
The sea conditions leave a very small window to plan and execute projects” - Mansour Mohammed, sub-Saharan Africa research analyst, Wood Mackenzie
rising interest in the hydrocarbons sector to gain a larger slice in the industry without putting in due investment. The government currently has a 10 per cent participation stake in the sector, but the Act could alter this to the government having a 10 per cent lifetime carry. This would ultimately mean the government would not be obliged to contribute to exploration expenses. “The Bill entitles the state to a free 20 per cent stake in all new energy projects, as well as a seemingly unlimited additional share at an ‘agreed price’,” says Van der Lith. “Specifically, the ‘agreed price’ element is creating uncertainty and this will not be welcomed by investors, especially the oil and gas industry. Investors need clarity to make informed decisions.” Van der Lith argues that the legal environment in South Africa, although far from ideal, needs to be placed in a regional context. “The legislation elsewhere in Africa is not better - in that a number of countries are currently busy with amendments to their legislation and other countries have legislation or practices that also result in similar uncertainties. Thus, if you want to invest in Africa, South Africa is, in my view, not more uncertain or more certain than other Africa countries in terms of oil and gas.” Paul Eardley-Taylor, head of Standard Bank’s
African Review of Business and Technology - July 2014
energy, utility and infrastructure operations, argues that it is important to remember that South Africa, up until now, has had practically no oil and gas sector. “The legislation has really been aimed at the mining industry up until now, because there was never the belief that South Africa had oil and gas. So now legislation will be catching up with the industry reality.” Another potential difficulty facing hydrocarbons firms is the tough physical environment off of South Africa’s coast. “The sea conditions leave a very small window to plan and execute projects,” says Mohammed. “The weather can be really bad, with high waves and strong winds and this impacts exploration activity.” The extent of South Africa’s hydrocarbons endowments is also far from clear. In 2011, the US Energy Information Administration estimated that the Karoo held 485 thousand cubic feet (tcf) of technically recoverable natural gas, which would make it the fifth largest natural gas site in the world. This estimation has since dramatically shrunk to 40 tcf, although experts claim that exploitation would still be lucrative based on this much more modest number. “There has been 400mn barrels of oil equivalent discovered through oil exploration drilling since 2009. We need to see how things develop now and translate excitement into material discoveries,” says Mohammed. Van der Lith is similarly cautious. “We know that certain organisations have explored this in a number of areas offshore, and have not found significant resources. It was reported that the entire offshore acreage is either taken up or under application which indicates, to some extent, that the appetite for offshore exploration is there,” he says. ■ www.africanreview.com
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BUSINESS
Ghana
Bringing a nation back into balance Ghana’s transition from an import-driven to an export-driven economy
I
t is palpably true that any nation which depends heavily on importation of foreign items and exports far less than its local items will definitely experience low economic growth and for that matter have a weak currency. Recently, the Bank of Ghana, in an attempt to save the cedi currency from depreciating too fast, injected US$20mn into critical areas of the economy in order to shore up the currency. But that was a temporary stop-gap measure. Since the beginning of the year, the cedi has suffered more than three per cent depreciation against other currencies, as demand for the dollar by local firms importing goods totally outstripped the supply, thereby worsening the country’s inflation outlook. According to the Ghana Stock Exchange (GSE), “In 2012, when the cedi depreciated by almost 20 per cent, the Bank of Ghana increased interest rates, limited the net open positions of local banks in currency trading, introduced new 30-, 60- and 270-day government bonds to mop up liquidity, restricted local banks from holding nine per cent reserves against non-cedi deposits in foreign exchange and instructed a 100 per cent local Ghana cedi cover for all bank vostro accounts. “Those measures temporarily halted the decline of the cedi, which was seen as a bold attempt to stem exchange rate fluctuations. “The new Ghana cedi was introduced on July 3, 2007 after four zeros were knocked off, making it the highest-valued currency unit issued by any sovereign country in Africa in 2007. “At that time, US$1 was sold at GHC0.91. In December 2008, US$1 was sold at GHC1.10. In June 2009, US$1 was sold at GHC1.40; in December 2010 it sold at GHC1.47 and in December 2011 it sold at GHC1.64. “At the beginning of 2013, US$1 was exchanged at GHC1.88 and ended the year at GHC2.16, a 15 per cent decline,” it says.
24
A trader at the Ghana Stock Exchange
Manufacturing is the “exhaust” of any booming economy On 7 January this year, the central bank announced the prohibition of foreign currency transactions in the country in order to stabilise the falling cedi against the US dollar. The Bank of Ghana outlawed contracting foreign loans by companies for their operations and also banned commercial banks from guaranteeing foreign loans for businesses, among other stiffer measures to halt the decline of the cedi. Government measures As reported by Graphic Business, a stateowned business weekly, recently: “The governor of the Bank of Ghana, Dr Kofi Wampah, is upbeat about the directives, when strictly enforced, would ‘make the cedi currency more attractive and, therefore,
African Review of Business and Technology - July 2014
instead of going to buy dollars, you will rather buy treasury bills and other Bank of Ghana/government papers, and so on’.” Inflation maintained its steady rise to close at 13.8 per cent in January this year. The January figure is 0.3 per cent higher than the 13.5 per cent recorded in December last year. Also, the monthly change rate for January 2014 was 3.9 per cent against the 1.0 per cent recorded in December 2013. Professor Cletus Dordunoo, a former board member of the Ghana Revenue Authority, says Ghana has one of the most fragile economies in the world. Dordunoo, who is now an economic and public policy analyst at ClayDord Consultancy Services, says Ghana has not been in a good state since the days of the first president, Dr Kwame Nkrumah. “In our 56 years of independence, we have never put the wheels of the economic growth on the road. The economy has not been able to sustain steady supply of water or energy, particularly electricity,” he says. www.africanreview.com
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Ghana
Dordunoo is quick to blame the situation on successive governments’ sole target of single-digit inflation which had a detrimental effect on other sectors of the economy. “We have to have multiple targeting. Unemployment itself is a misery to the economy.” According to the economic analyst, manufacturing is the “exhaust” of any booming economy and he charges the government to make that its vision. Dordunoo says he is not surprised that Ghanaians are indifferent to payment of tax because the results are not visible enough: “Ghanaians are very wise people that if they see the value of their taxes, they will continue to contribute.” He adds that the government needs to widen the tax net in order to get more people to contribute. Dordunoo says Ghana’s current import is more than 50 per cent of the country’s GDP and advised that “we need to produce more items and export appreciable quantity of them for the needed foreign exchange”. He says the country receives foreign exchange from foreign direct investments (FDI), loans, grants, remittances from
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BUSINESS
The increase of cocoa production could help reverse the fall of the cedi (Photo: Tulane Public Relations)
Ghanaians abroad, etc, but indicates they are still not enough to ensure an independent economy. “We must have a plan policy for development we can all own – a national development plan.” On his part, Alhassan Andani, managing
director of Stanbic Bank Ghana suggests the country must identify and focus on the production of additional export commodities to boost foreign earnings to help stem the depreciation of the cedi against the dollar. “We need to diversify the economy and
African Review of Business and Technology - July 2014
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BUSINESS
Ghana
focus on the production of more export commodities to rake in more foreign exchange,” he says, and added that a boost in cocoa production, non-traditional exports and oil production could help reverse the fall of the cedi. According to Andani, the government’s effort to address the budget deficit must be supported through prioritised spending to cut the budget deficit. “Government should invest in areas that will bring in additional revenues,” he suggests. He says in 2014, the bank will focus on supporting small and medium enterprises (SMEs); personal and business banking to reach more customers; and financial literacy services for the unbanked. According to Andani, there is also a plan to double the bank’s finance to the agriculture sector in 2014 from the current level of about GHC56mn (US$18.77mn). “Stanbic Bank wants to be part of government’s efforts to revamp agriculture, particularly the poultry industry,” he says, adding that the bank had invested in commercial maize and soya farming. Indeed, Ghana’s problem has to do with its
We need to diversify the economy and focus on the production of more export commodities to rake in more foreign exchange” - Alhassan Andani, managing director, Stanbic Bank Ghana
President John Mahama
people’s penchant for imported items they can easily produce in their own country. Currently, Ghana imports rice amounting to US$500mn per annum, as admitted by Ghanaian president John Mahama. Mahama estimated that about US$1bn was spent on the importation of only seven items per annum, although those items could be sourced or produced locally. The items include rice, vegetable oil, sugar and frozen foods, the importation of which amount to about half of the foreign exchange the country earned from exporting cocoa beans. President Mahama says the reduction in subsidies on utilities and petroleum prices
was to protect the integrity of the economy and save some funds to support pro-poor interventions, adding: “We need to sustain the measures we put in place; we have to move the informal sector to modern times.” But Professor Nii Noi Dowuona of the Faculty of Agriculture at the University of Ghana says the fundamental problem facing the majority of Ghanaians is their strong taste for foreign items. “[The] majority of Ghanaians need to be mentally-oriented to appreciate their own, since that is the only way government will be able to succeed in its plan of producing substantial local items for local consumption and the rest for export,” he adds. Dowuona, who was also former general secretary of the Convention People’s Party (CPP), bemoans the rapidity with which previous governments, after the overthrow of Dr Kwame Nkrumah, divested virtually all the state-owned enterprises he established to foreign investors. He says Ghana has since been experiencing these economic difficulties because “The African Personality” has been relegated to the background. “The time has come for Ghanaians to think Ghanaian so as to be consummate Ghanaians in terms of how they perceive things and their willingness to unearth their inventive talents for the good of the country and the continent. It is only by such a change in attitude that all of us can expect the appreciation of the cedi to an enviable level comparable to the major currencies in the developed nations,” he says. ■ Emmanuel Yartey
Ghana imports rice amounting to US$500mn annually
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Ghana
MINING
GPS to Modernise Ghana’s Mining Industry G
eo Professional Services (GPS) Limited, a reputable international mining company is working tirelessly to help in Ghana’s ongoing economic transformation through its major activity in modern system of gold mining, its related services and other business activities of the company. Indeed, GPS Limited has come in handy at a time Ghana’s economy is facing enormous challenges mainly because of the country’s import – driven economic paradigm. As GPS Limited prepares to contribute its quota to help reshape the economic destiny of Ghana, it is simultaneously carrying the local workforce along with it in order to transfer technology to them. The mining industry in Ghana accounts for five per cent of the country’s GDP and minerals make up 37 per cent of total exports, of which gold contributes more than 90 per cent of the total mineral exports. Thus, the main focus of Ghana’s mining and minerals development industry remains focused on gold. Ghana is Africa’s 2nd largest gold producer. Ghana has an estimated 1,600 tonnes of gold reserves. Its production grew 17 per cent from 2011 to 2012, primarily due to rising prices encouraging greater output. Official gold holdings in the nation are 8.7 tonnes, amounting to 8.4 per cent of total foreign currency. In an interview with “African Review,” Ramazan Kafarov, C.E.O and chairman of GPS Limited says his company executes a multiplicity of business services with financial groups, individuals, investors who are willing to invest in different sectors of Ghana’s economy such as the mining industry, especially gold mining. According to him, “our modus operandi is to give these investors advice as far as investing in Ghana is concerned to ensure smooth business operations.” Kafarov says they have experienced geologists from the former Soviet Union, now Ukraine, Russian Federation, Kazarstan, Uzbekistan and Belarus who are working in geological missions all over the world, prompting him to establish a body called
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“Institute of Mineral Resources of countries of Asia, Africa and America» here in Ghana. GPS Limited are also collaborating with Ghana’s Geological Survey Department to set up a joint geological laboratory of high international standard capable of providing geological tests for all mining companies in Ghana. The company has already brought all the geological equipment like Atomic Absorption Spectrophotometer, Vibratory Sieve Shaker, Planetary Mill, Jaw Crusher, Analytical balance Weight to the country for the laboratory. Kafarov says geology is one of his company’s strongest activities and that they are working assiduously with national associations of geologists of Ukraine and Russian Federation which will afford his Institute of Mineral Resources to collaborate with Lomonosov State University of Moscow (Faculty of Geology) of which there is an agreement being that, students graduating in the Moscow State University could come to Ghana to do their internship in geology for gold prospecting with GPS Limited on its twelve licensed areas. The twelve licensed areas located in Ashanti Region, Central, Western Region and Brong Ahafo Region and covers more than 1000 sq m in total. Kafarov says GPS Limited also offer mining services in all technical aspects of gold mining as well as dealing in heavy duty machines for mining from the Russian Federation, Ukraine, Canada, USA, Germany and Thailand who are the manufacturers. He says because his company’s operation is universal, “we have specific machines for gold prospecting for specific terrains. “It means that for different solid and specifics characteristics of mineral resource must be chosen and calibrated appropriate machines and equipment. “If a mining company needs such machines, we will be able to make them available for such a business entity to operate with. Alternatively, if such a company has not got the expertise in mining, we will give it all the legal, geological advice to ensure that profitability is ensured. Our company
possesses mining support license and all technical and intellectual facilities to help maintain uninterrupted, efficient and reliable services to companies in Ghana,” C.E.O of GPS assures. Undoubtedly, GPS Limited is bringing into the Ghanaian business environment especially the mining industry state – of – the – art machines and expertise to help effect the necessary transformational change in the prospecting and mining of different minerals. A handbook of the company entitled “Joint Laboratory of Geological Survey Department of Ministry of Lands and Natural Resources and Geo Professional Services Limited” says among others that. GPS Limited is proposing through Public and Private Partnership (PPP), the establishment of Chemical and Analytical Centre in Accra within the premises of the Geological Survey Department. “The location of the Analytical Centre in Accra will provide sufficient economic and technical advantages for execution of agreements with the government and private companies working in Ghana and neighbouring countries. As the country is in the process of economic development the presence of an Analytical Centre will provide not only geological and ecological surveys, but also services for quality control of industrial goods and food. It will also give us opportunities to train national specialists and build capacity of the country.” For many years that Ghana has been exporting gold, the country will in a few months to come, experience massive value addition in gold because Ghana’s Precious Minerals Marketing Company (PMMC) Limited are collaborating with GPS Limited to build (deleted) gold refinery with a laboratories, office facilities and bank on the premises of the PMMC Limited. Work is ongoing. According to Kafarov the refinery will render the gold to triple nine purity of banking metal and refinery after receiving “good delivery” from London Bullion Market Association will be the first refinery in West Africa that can provide such service. ■ By Emmanuel Yartey and Pavlo Machulin
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TECHNOLOGY
Data
Developing and selling datacentre solutions System Integrator GITS works in a partnership with engineering company Automation to deploy containerised datacentres in West Africa
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he benefits of operating containerised datacentres is a ‘hot’ topic on the market nowadays, with solutions offered to meet the demand for more high density resources and quick deployment. New environmental conditions are now being applied, too, to infrastructure deployments, even as the corporate budgets for facility services are decreasing. Innovation for efficient operation The Automation modular datacentres provide a solution for these trends and are built fully customised. Depending on the requirements, various cooling systems can be applied, such as direct expansion, chilled water, adiabatic cooling and fresh air cooling. The innovative design and equipment are a guarantee for fast delivery times, reliability and 25 per cent less operating costs. Over the past decade, several of models have been designed and installed throughout Europe. Within the Telecom market segment the current installed base ranges over 600 units. Containerised datacentres, sometimes referred to as IT-in-a-Box, are build according to customers’ requirements and specifications. They feature acoustical insulation to avoid nuisance for the direct environment, or
specific robust equipment to ensure a smooth operation even in the toughest conditions (temperature and altitude). Pretesting of the IT configuration is executed in the factory allowing a plug & play solution for the customer anywhere in the world. Markets and customers Automation customers are key players on the global market and public sector. Market segments are oil & gas, mining, telecommunications, military, government and education. Last year, Automation acquired international recognition, winning the prestigious ‘Modular Award’ of the ‘DataCentre & Cloud Awards 2013’ and becoming runner-up in the Datacentre Solutions ‘Facility Product of the Year 2013’ category. Furthermore, Automation has also been nominated for the ‘Datacentre Dynamics EMEA Awards 2013’ in the ‘The Most Extreme Data Centre Deployment’ category. Jo Aelbrecht, Automation CEO, said, "The strength of the design is the result of our indepth know-how, our years of experience and the acknowledged competence Automation has been developing out of the business unit ‘Power’.
“This engineering knowledge led to the development of the competence centre ‘Datacentre Facilities’ and our current successes." Adapting solutions The partnership formed by Automation and GITS is critical to distribution and deployment. Abdul-Bassit Munagah Ibrahim - CEO GITS, commented, “As a system integrator, we recognised the need for flexible solutions within the West-African continent and synchronised our ideas with this Competent Centre for Containerised solutions. We are convinced that these prefabricated solutions will be adapted fast in our region.“ Automation delegates also participated in an Economic Mission to Nigeria organised by Flanders Investment & Trade during the first six days of June, at which business opportunities were discussed in Lagos and Abuja. Nigeria is considered the fastest growing economy in Africa; it has been expanding at 8.8 per cent over the past decade. Notably, Nigeria’s growth has been fuelled by a strong performance of its non-oil sectors. The focus of Automation in this country will be on telecoms, government, education, security and construction. ■
Cloud World Forum rides the Big Data wave Big Data is the future of business consumer relationships as businesses, governments, researchers and organisations across all industries attempt to harness burgeoning masses of complex data to advance applications and services. Held mid-June in London, in the UK, the 2014 Cloud World Forum, co-located with Big Data World Congress, looked at how organisations are analysing their Big Data, to make more intelligent personalised choices about their customers and also at the risks Big Data poses. In particular, Susan Doniz, Global CIO, Aimia examined how Cloud, Big Data and next generation IT technology can help companies
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build relationships with their best customers. “Cloud computing technology and SaaS models are allowing us to simplify and commoditise the technology that Aimia’s employees use daily where we want it and how we want it, making us more flexible, responsive and effective,” Doniz said. “But more importantly, they are enabling us to offer similar benefits to our customers – including a drive to standardisation, flexible pricing models, and scalability to manage periods of surging data or the sheer volume and variety of data generated from the relationships with their own customers.”
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Internet
TECHNOLOGY
A Ghanaian IP gateway T
I Sparkle, the international services arm of Telecom Italia Group, is working in partnership with Dolphin Telecom to ensure the provision and the development of Internet connectivity services in West Africa through a newly-established Internet Protocol Point of Presence (IP PoP) in Accra, Ghana. A point of presence is an artificial interface between communicating entities. An IP PoP acts as a form of service access device for telecommunications networks = enabling, for example, a cell phone, to obtain service from a commercial wireless provider. The arrangement between TI Sparkle and Dolphin Telecom commits them to the provision of cost-effective, high-quality, secure global IP connectivity solutions to telecommunication line controllers (TLCs) or operators, Internet service providers (ISPs) and other service providers that are connected to Accra through major international cable systems.
Ghana’s leading provider of banking and finance IT solutions BANKING PRODUCTS ATM machines EFT switching Credit card, debit card and gift card management Prepaid programs Retail POS systems IT INFRASTRUCTURE
Through its strategic relationship with Dolphin Telecom, TI Sparkle has established the first Tier 1 IP Gateway in West Africa, bringing the Internet thousands of miles closer to customers in the region with impressive improvement in terms of quality of experience” Through this fully-protected IP hubbing node in Accra, customers can gain access the world’s most popular content hosted in Europe or in any of the multiple and dispersed point of presence of Sparkle Global IP transit backbone. In addition, customers will be able to exchange their intra-regional traffic locally, instantly improving performance by saving hundreds of milliseconds with respect to any other European IP hub. “Through the strategic relationship with a relevant player like Dolphin Telecom, we are able to establish the first Tier 1 IP gateway in West Africa and bring the Internet thousands of miles closer to customers in the region with impressive improvement in terms of quality of experience and latency,” said Elisabetta Ripa, CEO of TI Sparkle. “Our partnership with TI Sparkle is a proof of our commitment in bridging the internet divide in west Africa and a response to the increasing local demand for high quality and protected IP connectivity solutions following the recent development of the IT segment in the region,” added Abdel Mageid Elzain, managing director of Dolphin Telecom. The technology underpinning this connectivity project is Seabone, TI Sparkle's global IP transit backbone, which enables connectivity across the globe over a fully-owned, redundant and scalable fibre telecommunications network. ■ www.africanreview.com
Enterprise servers Personal computers Networking products High-end print solutions Online banking solutions Security products
For all your IT products, solutions and process automation needs, contact Hysen today.
www.hysen.info + 233 30 2925731 ghana@hysen.info SALES | SERVICE | CONSULTANCY | TRAINING
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TECHNOLOGY
Storage and data solutions
Swept by a surge The importance of surge and lightning protection for small technology firms operating in South Africa
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nstable power and voltage fluctuations are common in South Africa, and with the summer season in full swing, lightning strikes are increasingly frequent in certain areas. Power surges and dips, as well as massive voltage fluctuations caused by lightning, can damage sensitive equipment and can cause data loss or corruption on computers, servers and storage devices. This leads to loss of productivity and rising costs to replace and repair equipment. While large organisations typically have full surge protection solutions in place to safeguard against this damage, the Small Office Home Office (SOHO) market tends to overlook this and regards it as an unnecessary expense. However, the cost of surge protection is minimal compared to the cost of failed or damaged equipment. Problems and productivity The effects of unstable power, including voltage surges, dips and lightning strikes, can negatively impact a variety of electronic devices. In fact, voltage problems can potentially damage computers, printers, phone and data lines, and even fridges, microwaves and other miscellaneous equipment. Lightning strikes have the potential to completely ‘blow’ equipment due to the massive surge in voltage they cause. In addition, small dips and surges, common in South Africa’s unstable power environment, can degrade equipment over time, shortening its lifespan, causing damage and premature failure. While some of this equipment has no particular impact on productivity and business, it costs money to repair or replace, and is an unforeseen expense in many instances. In addition, there is also a significant inconvenience factor involved, and should insurance claims need to be submitted, weeks can pass before product replacements or funding is delivered. While the majority of users in South Africa are aware of the problems with power fluctuations, there is a misconception that a simple surge protection plug is sufficient. These plugs do provide some level of
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Lightning strikes can completely ‘blow’ equipment due to massive surge in voltage
protection, with a single surge protect at the plug. However, as soon as lightning hits this equipment, the fuse will blow, and the plug must be replaced if it has to continue providing protection. These plugs protect equipment that is plugged only into them, leaving phone and data lines vulnerable to power dips and surges. An uninterrupted power supply (UPS) can also assist with providing protection, but in the SOHO market these are typically only connected to servers, and do not provide protection for desktops and other electronic equipment. Lower costs for lifetime protection Effective surge protection solutions are available for a wide range of equipment, providing layers of protection to minimise damage. These include multi-plug strips that feature surge protection at the outlet as well as at each plug point on the strip. The strips ensure that only on the third surge or lightning strike will the dangerous power voltage reach any item of equipment. For data and telephone lines, specialised surge protection equipment is available, and automatic voltage regulators can be added to protect equipment from both dips and
African Review of Business and Technology - July 2014
spikes. In addition, multi-function surge protection, with plugs as well as phone-line sockets, and notebook surge protectors for ACs, phone and network lines, provide protection for multiple devices on a single piece of equipment. When purchasing these solutions from a reputed supplier, they are not only cost-effective, but also offer a lifetime warranty. The warranty will allow the user to replace the item at no cost should lightning strike and blow the fuse in the protective equipment. When it comes to protecting sensitive equipment, as well as data and other electronic devices, from the dangers of unstable power, a multi-layered solution is most effective. A combination of a UPS for servers, along with specialised surge protection for plugs, notebooks, data and phone lines, is the most effective. However, users must examine their needs and the set up of their office, and seek the assistance of power solution experts, in order to design the most effective and cost-effective solution for their business. ■ Elrica Quick, APC specialist at Drive Control Corporation www.africanreview.com
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Irrigation TECHNOLOGY
At the core of
BUSINESS By strengthening the local workforce in Africa, Kirloskar Brothers Limited have created a niche for themselves in the continent, says Shipra Tripathi, head of Corporate Global Marketing and Communications at KBL KBL just entered the Limca Book of Records and was awarded the Award of Excellence at ACREX 2014 for its Lowest Life-Cycle Cost Pump. Do tell us about this. KBL’s all-women Coimbatore plant set a benchmark and bagged a prestigious award by the Limca Book of Records for its project Mahila Mission 20. The project achieved a milestone of assembling a pump in a time of 17.25 seconds, making it a national record. The silver jubilee of the Limca Book of Records, dedicated to the cause of empowering women, honoured the entire ladies workforce of Kirloskar Brothers Limited, Coimbatore plant. The award was offered in the presence of numerous dignitaries, leaders, decision makers and bureaucrats from various participating companies. The Coimbatore plant is run efficiently by the all-woman workforce and has been receiving numerous awards in various categories. We are hopeful that this trend will continue. After the setting up of value-added service facility in Egypt, what next does KBL have in mind for the region? The service facility is an investment in the region and we are hopeful it will drive more business towards the organisation. This is our effort to let our customers know that we are here for the long run and that we are committed to the best work from KBL. Our effort in the region will continue to grow. This service centre will also serve as a place for training of the local engineers to operate and maintain the pumps better. It will help reduce incidents of breakdown and damage to the equipment and, thus, reduce costs incurred to maintain these critical installations. What are KBL’s future strategies for the region? KBL is committed to a very long-term engagement with the region and Egypt in particular. It will be our effort to grow the business on good practices. We believe that our investments will also improve our connection with people and our commitment to a greater engagement extends to this level. We are convinced that the potential of the region is still unexploited, especially in the use of energy efficient technologies to manage water resources. With the experience that KBL has in this field, it is now time for a comprehensive dialogue on planning the use of these in the long run. It is our effort that we pool in our resources with that of think-tanks and technology institutes to help formulate policies and strategies that give us optimal solutions for the region. As more and more Indian companies are entering Africa, what steps is KBL taking to retain its position in the region? It is our work that speaks for itself and we have an intrinsic position in the minds of decision-makers as a credible organisation that will make all efforts to develop and deliver the best fluid handling solutions. It is with this knowledge that we prepare ourselves as well as work on the www.africanreview.com
ground in any of the countries that we are present in. Our irrigation project in Senegal is valuable to the country and has helped reduce the import bill on rice by almost half, releasing a large amount of foreign exchange to be used for other critical requirements in the country. The one thing that we definitely do is to engage with planning for the countries. We recognise that each country in Africa has unique requirements and we believe we are capable of providing optimised solutions for each country. Equipped with more than 700 engineers, KBL has the bandwidth that works in R&D as well as delivery on the ground. We are also engaged in a process of creating critical partnerships with institutes that will strengthen our delivery on the ground. We believe that our work should speak for itself and till now it has not failed us. What CSR activities is KBL conducting in Africa at the moment? Our CSR is based on the concept of ‘teach to fish’. We believe that we have to train people to become skilled as it will help increasing our local employment and create educated users. So as a policy, our work is around creating skilled people in countries of Africa. KBL’s global vision places a lot of importance on the countries of Africa. It promises to be one of the most potential markets for our products. ■ Shipra Tripathi heads the Corporate Global Marketing and Communications for Kirloskar Brothers Limited. She was also responsible for creating the CII-Conclave on India Africa that takes place every year in India. Author of several articles on the growing economic engagement between India and Africa as well as India and Southeast Asia, Shipra has travelled to over 30 African and Southeast Asian countries and has developed close contacts there. She is a CII Certified EFQM Assessor and holds a post-graduate degree in International Relations from the University of Delhi. African Review of Business and Technology - July 2014
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TRANSPORT Road Haulage
Committed to safety Scania East Africa contributes to efforts towards better conditions for road traffic in Kenya
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herever its operates globally, Scania, one of the world’s largest buses and trucks manufacturers, commits to ensuring that road traffic safety remains one of its cardinal obligations. Since its subsidiary, Scania East Africa, began operating in Kenya in March 2014, Scania has been keen to be part of the team developing sustainable transport in Kenya and eastern Africa. Scania had operated in Kenya since 1988 through its distributor Kenya Grange Ltd, with solid results. However, the new subsidiary represents a long-term commitment to Kenya and eastern Africa, and a determination to keep reflecting the opportunities and challenges inherent in the transport industry in the East African Community (EAC). The company is cognisant of the region’s rapidly improving road network, growing middle-class - and the growth in demand for safer, better and more comfortable bus transportation, in addition to the rising demand for more efficient and better systems for transportation by heavy duty and related trucks. “Going forward, Kenya will have a more mature transport industry and Scania wants to be part of this development and also help in ensuring that the development happens,” said Christopher Podgorski, vice president trucks at Scania. Podgorski reflected on opportunities and challenges in the industry: transport is vital in society moving goods and providing mobility for people and hence helping in creating wealth and development. Yet challenges abound. Globally, about 3,400 people die on the road daily this translating to about 1.24mn deaths each year and between 20 and 50mn injured people. 92 per cent of road traffic deaths occur in low- and middleincome countries despite the fact that these countries have only 53 per cent of the world’s registered vehicles. The proportion of road traffic deaths in vulnerable road users is greater in low-income countries than in high-income countries, and this has to do with lack of or poor infrastructure, speedy rise in number of vehicles, lack of rules enforcement, speeding, discourtesy and drunk driving among others. Actions must be taken in these countries, Podgorski said. Since 2007, 88 countries have reduced the number of road traffic deaths
Christopher Podgorski, Vice President Trucks, Scania, demonstrates vehicle safety features to MIchael Kamau, cabinet secretary at the Kenyan Ministry Of Transport and Infrastructure
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Scania has revamped its approach to East African markets
suggesting that progress can be made if sufficient political will and commitment is provided; yet in another 87 countries the number of road traffic deaths has increased despite the fact that the number of deaths at the global level has remained stable. He identified infrastructure, vehicle and driver as the three elements that obviously impact road transportation and traffic safety. A focus on driving To improve road safety, Scania is keen to focus on drivers by providing them with technical support and solutions. This way the company engages the community and influences human behaviour. “Focus on the driver” remains Scania’s maxim; “we firmly believe the driver is the single most important asset for a haulage company and a Society keen to improve road safety and reduce needless fuel consumption,” observed Podgorski. Scania conducts driver training for every new vehicle bought, with refreshers for old Scania vehicle drivers, and also runs Scania Driver competitions - to demonstrate responsibility, contribute to a safer environment and help in reducing its customers ’ ‘fuel and vehicle maintenance costs, as well as protecting the general environment from pollution. According to Per Holmstrom, Scania E Africa’s MD, Scania’s Africa development strategy is closely allied to helping the region deal with its roads, which are now full with heavy duty trucks and buses, consequent competition and an increased number of road traffic accidents. It seeks to help citizens whilst helping customers to improve profitability through fuel efficiency and real uptime. “Apart from manufacturing the most fuel-efficient engines, the company trains, and coaches drivers on the right driving tactics, attitude and speeds for the best fuel efficiency. Through providing maintenance and repair skills, we sustain uptime and ensure that the vehicles are productively at work and not parked by roadsides or garages,” explained Holmstrom - who also reiterated the importance to the company of running a fully-fledged subsidiary here to keep efficiently providing reliable and genuine spare parts for the market and clients and to sustain its unique driver training and mentoring. ■ Fred Ndung’u www.africanreview.com
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POWER
Power Generation
PIONEERING Nigeria’s gas industry
Gas is fast becoming the fuel of choice in Nigeria as the country attempts to maintain its status as Africa’s largest economy through its complex power mix. ith a population of more than 165 million that is growing by approximately 3 per cent per year and an economy growing at close to 7 per cent, Nigeria’s complex and often insufficient power infrastructure has found itself under increasing strain in recent years. Despite the intentions of the country’s government to expand its power grid and domestic gas supply, a lack of investment and a sluggish commitment to follow up on such developments has left many businesses and individuals with limited access to the power they require to help maintain the buoyancy of Africa’s largest economy. The model the country has adopted to maintain its power supply consists of a complex mixture of grid, mini-grid and smaller genset applications. Nigeria’s large gas reserves, however, has led many experts such as Graham Christie, General Manager of Cummins Energy Solution Nigeria, to acknowledge gas as the fuel of the future for Nigeria. Self-generation through diesel or petrol generators in Nigeria is estimated close to 6,000MW, but these can often prove to be expensive to operate due to fuel costs.
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Modular Power Station, supporting Nigerian Bottling Company in Lagos
“When we do the calculations, we find a gap between generators running on gas and diesel,” Christie remarks. “Gas costs half the price of diesel, so there definitely an opportunity to change customer’s preference to gas.” Christie says that diesel stands at
around 52 Naira per kWh with a blend of diesel and gas 40-45 Naira kWh, compared with natural gas at 12-14 Naira per kWh, and compressed natural gas (CNG) and liquefied natural gas (LNG) at around 28 Naira per kWh.
Increasing the gas network
“People consider 3 factors – lowest cost, simplest solution and a readily available fuel source” 34
African Review of Business and Technology - July 2014
Nigeria’s minister of petroleum Diezani Alison-Madueke recently announced a project to construct the nation’s longest gas pipeline from Calabar via Ajaokuta to Kano State through a Public Private Partnership (PPP) scheme. The minister said that 500 km of new gas pipelines had already been completed and commissioned, which
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Power Generation
included the doubling of the capacity of the Escravos to Lagos Pipelines System (ELPS) between Escravos and Oben, as well as extensions of the ELPS from Oben to Geregu and River Imo to Alaoji. The federal government has also been overseeing the construction of the strategic EastWest pipeline, while the Lagos end segment of the ELPS project is said to be close to completion. This shoring up of gas supplies will be a welcome relief to many Nigerian citizens, of whom a growing number are relying on gas-powered gensets for their daily power demands. According to Christie, Nigeria’s power grid system struggles to provide reliable and consistent power. In the capital Abuja, the majority of the population has access to an average of 16-18 hours of power supply from the grid, while most areas in Nigeria receive only 40-60 per cent of its supply from the grid. With customers demanding more from their country’s power grids, the federal government has turned to a number of privatisation programmes at existing power station and across the distribution network. Despite this move, mini-grid solutions remain one of the most popular options for consumers, and this is an area in which Cummins is presently very active within Nigeria. “People consider 3 factors – lowest cost, simplest solution and a readily available fuel source,” Christie remarks. “We see a lot of potential for our business of grid enforcement for peak hour shortages and due to the cost of overcoming distribution cable paralysis, mini-grid practices have become the most viable option.” Cummins is looking to increase its involvement in the mini-grid market, as it looks to secure embedded support for distribution companies in the country.
POWER
Cummins offers support to local companies who wish to distribute gensets to residential and industrial customers. Once commissioned, Cummins can offer Operational Maintenance support/ Aftermarket on gas genset-powered mini grids or on single sets.
Count on Cummins
1750Kw set in sound attenuated Power Box
“Our mini-grid solutions have an optimal size of 60MW, while the more popular have a capacity of between 1020MW, with supply available in different areas for customised customers — industrial as well as residential,” says Christie. Many businesses and individuals rely on firms such as Cummins for their power supply through mini-grid networks and capital purchases and, therefore, guarantees must be put into place to ensure power supply is secured and business can continue as normal. According to Christie, the company has demonstrated a reliability rate of up to 99.8 per cent and claims that over the past 12 months downtime on one of its projects has measured no more than 13 seconds.
Cummins has been supplying gaspowered gensets to the Nigerian market for 10 years and in 2013 Cummins Energy Solutions Nigeria was established as a dedicated Cummins gas dealer to tap into the country’s growing demand for gas-powered gensets and mini-grid applications for use across industrial/commercial areas. Through its partners it is able to supply processed CNG and will soon be able to supply liquefied natural gas (LNG). The company is hoping to see CNG supply to areas within 200km of the plants, whereas the reach of LNG will increase this to 1,500km, depending on the storage available for LNG, Christie notes. While the model remains uniquely Nigerian, Christie says it also has much potential in other African countries – especially in gas-rich countries such as Angola and with Bio gas projects in Kenya. “What is required is more distributed piped gas funding,” Christie remarks. “However, 90 per cent of the countries in Africa have the potential to embrace the mini-grid system via Bio and Natural Gas.” ■
To find out more email: robin.kuriakose@cummins.com Tel: +27 83 556 4651
10MW Power Station outside of Lagos
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Generators
POWER
Cleaner, more reliable sources of power How engine makers have helped customers meet shortfalls, when grid supply is not available to provide the basic or additional requirements for electrical power
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nterruptions to electrical power supply can create havoc and have economic impact. Electrical generators powered by diesel engines provide reliable electric power when there is a failure of primary power supply, minimizing losses. With a growing dependence on technology and interconnected systems that rely on electricity, reliability becomes critical. Hospitals, data centres, water and sewage facilities, fuelling stations, and communication and transportation systems require continuous power. Diesel-powered generators provide a steady supply of power for applications such as refrigeration, building operations such as elevators and sprinklers, and to support computing, banking and business networks. Diesel-powered generators provide the most reliable form of backup power. Many international building codes and standards effectively require diesel generators for code compliance because of the need for rapid response time, load-carrying capacity, fuel supply and availability, and reliability. One of the most important and unique features of diesel-powered generators is rapid response time, with the capability to start quickly and
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There is signifcant ongoing investment in developing generator platform designs to meet market needs for simplified operation and improved reliability across a range of challenging applications
to handle a full electrical load within ten seconds of grid power failure. Supporting the grid Advances in clean diesel technology have led to the introduction of prime power generators with low emissions, opening new network grid opportunities in distributed generation and peak shaving. As demand increases for clean, reliable power to supplement fragile grids, investment in alternative energy sources such as hydroelectric, nuclear, wind and solar power have also boosted demand for diesel-powered
generators. Wind and solar energy, while clean, is intermittent, thereby necessitating the incorporation of stationary generators to provide ongoing power reliability. During certain periods of high electricity demand, or infrastructure failure, shortages of electricity in various countries around the continent have resulted in rolling blackouts. One option for response and to preventing grid failures is to bring on supplemental electrical supply through the strategic use of stand-by diesel generators in a “demand responseâ€? mode. During periods of peak electrical demand, the generator owner activates the building generator to take the electrical demand off the grid - or, in some instances, operates the generator to put power back into the grid. Using diesel generators in this way, load on the grid is reduced during periods of high demand, thereby avoiding prolonged use of emergency generators in the case of an actual power outage. Other related solutions include reducing demand on the conventional power plant through distributed generation - that is, producing electricity onsite with a diesel or natural gas generator where it is used, bypassing the need for full reliance on the grid. â–
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POWER
Generators
YorPower diesel generators for remote Gambian village YorPower, a British independent diesel generator manufacturer with a long history of serving customers in East and West Africa, has just delivered two 250kVA generators to a remote village in The Gambia. Prior to the arrival of the YorPower units, the village had no source of electricity and the development of its inhabitants was being severely limited. The generators were sourced by a UK-based charity and had to be fully ‘tropicalised’ to operate in the extreme environment in The Gambia. The full YorPower generator range includes generators rated at 50hZ and 60hZ, in both three phase and single phase configurations from 10-2200kVA. Diesel generator sets can be purchased directly from its production facility and are typically powered by the latest Perkins engines, optimised to provide maximum fuel efficiency and built with a soundproof enclosure. YorPower offers competitively priced diesel generators to suit most power applications, through strong supply partnerships. It also supplies used generators for customers who have a more economical budget, ideal for emergency generator applications and/or one off seasonal requirements.
Himoinsa trains for its 4HD engine In parallel with the recent unveiling and launch of the new Himoinsa HHW generator set series, the company’s after sales department has organised training courses for the technical teams of Himoinsa’s various subsidiaries that will provide in-depth information on the make-up and operation of the new Himoinsa 4HD engine used in the new HHW series. “We are striving not only to successfully launch a quality product but to ensure that our entire team is prepared to apply technical solutions and deliver a quality service for our customers,” said Jorge Torres, director of the after sales department. Featuring a Himoinsa alternator, engine, controller and canopy, the HHW series has a power range between 20 and 100 kVA at 50Hz and between
Himoinsa’s after sales department has organised training courses for the technical teams of the company’s various subsidiaries 30 and 120 kVa at 60Hz. Professionals from the Technical Service of Himoinsa’s subsidiaries in Poland, Portugal, Mexico, Panama, the Middle East and Spain attend the technical training course for the new HHW series held at the Himoinsa China production centre.
Master Power Technologies commits to Zambia Power solutions and data centre specialist Master Power Technologies, has recently invested resources in Zambia in order to better service its local sites. “Having identified a need to meet the ever increasing demand for power solutions and data centres in the region, the decision to invest in a full time direct presence was easy,” said Neill Schreiber, sales and marketing manager at Master Power Technologies. The Zambian team is headed by Charlie Marshall, regional manager for Zambia. Currently there are offices in Kitwe and Lusaka to ensure timeous technical support to the local customer base. “The reaction to our direct presence here has been overwhelming. We are connecting with our customers on the ground,” said Marshall. “We believe the investment in the region is paying huge dividends and sending a message that we are serious about doing business in this region.” Schreiber added that “plans are under way to increase our presence here, to include warehousing of products and spares”, as the company sees Zambia as a springboard to the rest of Africa.
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Barloworld Power advises on parts
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or some time, a concise explanation of the risks entailed in using non-genuine parts for Perkins engines has been offered by Barloworld Power on its blog (www.barloworldpowerperkins.com/blog). Invaluable guidance Such advice is invaluable. The company’s guidance includes the following notes. Nongenuine parts are designed using reverse engineering (copying an original component). Manufacturers of nongenuine parts do not have access to Perkins’ technical data and drawings, so these parts are designed and manufactured in isolation from the rest of the engine. Moreover, in most cases, the material specification is rationalised, so there is a real risk that these parts will not fit correctly. This can result in rapid wear, compromised performance, poor reliability, higher oil and fuel consumption and even component damage or engine failure. Barloworld Power advises, also, that suppliers of non-genuine parts will only provide a small range of the high-volume part numbers. They will not support the complete Perkins engine range and will not be covered by the Powerpart warranty. Those using genuine parts benefit from components that are designed to work together to maximise component life and engine performance. Genuine parts are designed, also, to match the individual engine characteristics across the whole Perkins engine range, to fit first time and saving on costly downtime. Furthermore, genuine parts restore optimum power and fuel efficiency and are supported by the Perkins Powerpart Warranty, which indemnifies purchasers for certain costs associated with repair, including: travel; labour; materials; and related engine damage caused by the initial product failure. With nearly 20mn engines produced by Perkins, of which more than half are still running, Perkins products have earned a reputation for reliability, dependability, flexibility, integration and low cost of ownership. www.africanreview.com
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POWER
Generators
Preventative maintenance is key for diesel generators The reliability records of standby power solutions can often be correlated to their service and maintenance regimes. The quality and frequency of preventative maintenance is particularly relevant in the case of diesel generators. Jack Ward, MD of power provisioning specialist Powermode, says monitoring and maintenance programmes also minimise the need for emergency repairs and ensure that when called upon to do duty during power outages, standby power systems will work to full capacity every time. “The investment made in a standby power solution is only as good as the service it receives. In fact, if you budget a little less on the solution and more on its maintenance you will be rewarded with a significantly more reliable and – overall - cheaper long-term cost of ownership,” he said. Ward says that when it comes to regular servicing and maintenance, many critical procedures are overlooked on a day-to-day basis by owners whose generator plants are frequently ignored until needed – often in an emergency. “The dynamics of the environment and nature of the equipment are the main factors to be considered. A standby power supply is an emergency power solution which, by its very nature, it is not top-of-mind and normally neglected by employees who are not dedicated to facilities management. “Only when the power grid fails does the standby power system gain in importance in the eyes of staff members who rely on its reliability to continue to function and be productive,” he notes. Ward stressed that diesel generators - and uninterruptible power supply (UPS) systems - face challenging operating environments, including high voltages, unstable power ranges, spikes surges and transient voltages. “In the case of generators, intermittent or periodic operation causes
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African Review of Business and Technology - July 2014
When it comes to regular servicing and maintenance, many critical procedures are overlooked on a day-today basis - generator plants are frequently ignored until needed stagnation of lubricant and fuel. Diesel engines require regular operation, ideally weekly for 20-30 minutes, to ensure optimum performance.” He added that generators are usually located outside in a yard, in a parking bay or receiving area and the enclosures are less than secure and open to the elements. Rodents are common companions. “It is precisely because the environment is less controlled and variable that regular planned maintenance becomes vital – and mandatory.” Ward observed, also, that like their human counterparts, diesel generators need regular exercise. “Units on continuous standby must be able to go from a cold start to fully operational status in seconds. This imposes a severe burden on engine parts. However, regular exercise keeps engine parts well lubricated, fluid lines unclogged and prevents harmful oxidation of electrical contacts. “Against this background it’s critical, from both operational and safety perspectives, that servicing and maintenance be carried out by qualified technical personnel. Ideally, the task should be outsourced to a specialist firm well versed in diesel generator technology, which differs significantly from petrol engines or engines used in automotive or trucking applications.”
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Generators
POWER
How Altaaqa Global addresses Southern African markets Altaaqa Global CAT Rental Power, which provides temporary power solutions, has opened a branch in Johannesburg that will cater to several countries in Southern Africa, including the Republic of South Africa, Angola, Botswana, Mozambique, Madagascar, Malawi, Namibia, Zambia and Zimbabwe. Altaaqa Global brings its expertise, innovative technologies, industryproven reliability and rapid deployment to the region, which is largely known for its thriving oil and gas, industrial manufacturing, and mineral and coal mining industries. Peter den Boogert, general manager of Altaaqa Global, spoke of providing Southern Africa with the most advanced power plant packaged systems, remote monitoring, and fuelefficient gas, diesel or dual-fuel-powered generators. "Altaaqa Global and its sister company in Saudi Arabia have a total combined fleet of 1,400MW rental power plant generation readily available to serve the Southern African region." One of the flagship innovations that Altaaqa Global will offer, he said, was the flexible operational mode that can switch from island to grid mode in just seconds. Furthermore, Altaaqa Global's energy rental dynamic package allows its power plants to hook directly to the grid without the need for a substation. The global outlook for the rental power industry has been encouraging, and Steven Meyrick, board representative of Altaaqa Global, sees merit in capitalising on it through strategic market and geographic expansion. "With this recent feat, we believe that we are on our way to fulfilling, even exceeding, the highly ambitious objectives we set at the launch of our company in 2012," Meyrick said, adding that Altaaqa Global would continue to pursue multi-megawatt independent power projects
Paul Heyns, a power equipment engineering expert based in Pretoria, who leads Altaaqa Global's sales for Southern Africa
(IPP) in various industries, in addition to heavily investing in human resources, process and business optimisation, and product expansion. In line with its avowed corporate social responsibility programs that aim to alleviate the social needs of its immediate environs, Altaaqa Global will also continue to provide job opportunities, extend immediate assistance for school children, and conduct educational campaigns on energy conservation and environmental stewardship in Southern Africa. Meyrick said, "One of the pillars of our sustainable business model is employing and training local professionals in areas where we operate, and we are excited to extend that commitment to Southern Africa."
A new distributor for Inmesol in Burkina Faso Owing to a growing demand for generator sets in Burkina Faso, Inmesol has recently signed a deal with Belkom Industrie, its new distributor in the West African country, which specialises in the supply of industrial equipment and services to international companies and public organisations. Its business ranges from the study and concept of each project through to the final implementation, also covering the distribution and purchase and sale of machinery manufactured by well-known brands from around the world. Belkom Industrie has its headquarters in the capital, Ouagadougou, the administrative and economic centre of Burkina Faso. Several Inmesol generator sets from the emergency range arrived at their offices first, destined for various companies in the industrial sector.
Inmesol generator sets have been delivered to Belkom Industrie, the company’s new distributor in Burkina Faso
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African Review of Business and Technology - July 2014
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POWER
Generators
JMG and Mitsubishi Heavy Industries work together in Nigeria The power sector in Nigeria is undergoing positive reform, paving the way for significant economic growth in all industries. The success of the power sector will need robust companies with the financial capability and the technical support of global technical partners in order to develop high performance power solutions. JMG Limited (http://www.jmglimited.com) has always been a leader in Nigeria’s power generator industry. In order to leverage on the dynamic changes in the country’s power sector, it has signed a partnership agreement with Mitsubishi Turbocharger and Engine Europe BV (being the headquarters for Mitsubishi Heavy Industries Ltd products in Europe, Middle East and Africa). The partnership enhances JMG’s capabilities to offer solutions in power plants, cogeneration, independent power projects, and gas turbines. Mitsubishi is well known for its engine technology capable of producing high efficiency power systems. It manufactures superior engines totalling 10 GW output every year and featuring the best fuel efficiency figures in the world. Mitsubishi is also the owner of Pratt & Whitney, one of the manufacturers of gas turbines for power generation. The conglomerate is confident about the opportunities available in Nigeria’s power sector and is committed towards expanding its operations to the country. Mitsubishi Turbocharger and Engine Europe B.V. (MTEE) sales and marketing manager Morten Brix visited Nigeria recently, during the Nigeria Oil and Gas Exhibition 2014 in Abuja, to celebrate Mitsubishi’s partnership with JMG and emphasise the company’s focus on Nigeria.
Kenyan power project set to reduce reliance on engines Tshepo Mahloele, CEO of Harith General Partners, said recently that the Lake Turkana Wind Power Project (LTWP), which projected to add an existing 300MW of low-cost wind energy to the national grid of Kenya, will support diversification of Kenya’s energy mix and reduce the country’s reliance on power production from oil and diesel power generators. HGP is a pan-African fund manager for infrastructure development. LTWP will bring broader economic benefits to Kenya, too - and, specifically, to the Turkana area, where unemployment is high - with jobs and economic development as well as electricity. The Kenyan government will save millions per year on importing fuel. The LTWP tax contribution to Kenya alone will be approximately US$27mn annually and US$548mn over Tshepo Mahloele, CEO of the life of the investment. Harith General Partners In Kenya, electricity is mainly generated from hydro, thermal and geothermal sources. Wind generation accounts for less than six megawatts of the installed capacity. Currently, hydro power comprises more than 52 per cent of the installed capacity in Kenya and is sourced from various stations managed by the Kenya Electricity Generating Company (KenGen).
Inmesol opens up a new market in East Africa
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enerator manufacturer Inmesol is now present in Tanzania through JS Electromec, its official distributor in the East African country. JS Electromec manages projects, sells, installs, provides service and gives post-sales support to companies requiring electrical systems and products, including generator sets. The company is located in Dar es-Salam, the city with the largest population and the most trade in Tanzania. The city also has the country’s major port, where Inmesol’s generator sets are delivered. The JS Electromec facilities include a large storage area and there is a workshop with equipment and technicians which enable the distributor to guarantee very fast delivery. This agreement with JS Electromec forms part of Inmesol’s export strategy, with which we continue to create alliances with distributors throughout Europe, Asia, South America and Africa. Inmesol currently exports to 80 countries Inmesol generator sets arriving at the around the five continents. facilities of its distributor in Tanzania
Kohler’s new light commercial generator Kohler Generators has introduced a 60 kW light commercial generator, the Kohler 60RCL, which features a compact footprint and neighborhood-friendly sound levels. The unit is designed to keep businesses and large homes running when the power goes out. Contributing to the quiet sound levels of the Kohler 60RCL is a patent-pending, three-fan, automotive-style cooling system. This keeps the sound level during operation down to 61 decibels, which is normal conversation level. With its quiet, compact design, the generator
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African Review of Business and Technology - July 2014
is ideal for locations such as bank branches, restaurants, pharmacies and stores in standalone buildings or retail centres that rely on critical power. It’s also suitable for larger-size homes with greater power needs, especially those in warmer climates with high airconditioning demands. Many small businesses, especially gas station convenience stores, can realise an immediate payback by having backup power during a utility outage, by preventing building damage that can happen when critical heating and
cooling systems are down, protecting inventory, and staying open to serve community residents. Like all standby generators, the new 60RCL automatically turns on within seconds of a power outage. It provides reliable power for critical systems like sump pumps, airconditioning and security systems to delicate electronics like computer equipment. The 60RCL’s commercial-grade engine runs on either natural gas or liquid propane, so there’s no need for refueling.
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POWER
Generators
YorPower makes the Best Stand The prestigeous 'Best In Show Award' was presented to YorPower Kenya recently for its stand at the African power exhibition Power & Energy Africa, which was held in April at Kenyatta International Conference Centre in Nairobi. The award was presented by the show organisers and was received by YorPower International sales director Ben Whitmarsh and YorPower Kenya operations director Mary Murimi. The YorPower stand featured one of the company's best selling UK-manufactured canopied diesel generators with a special show offer attracting a great deal of attention alongside a petrol powered portable generator. YorPower manufactures, services and repairs generators both for industrial and somestic purposes. In addition to its own products, ranging from 10kVA up to 2200kVa, YorPower works with customers on units made by Volvo, Cummins, Deutz, Lister Petter, Scania, FG Wilson, John Deere, Honda, MTU, Perkins, and Kubota. YorPower Kenya holds a large stock of generators at its premises on the Saku Business Park in Nairobi.
Cummins sells new Stamford unit Launched at Middle East Electricity 2014, Cummins Generator Technologies is now taking orders for a new 1,250kVA generator. The Stamford P6 – LVI634G, 1,250kVA generator, which is the newest addition to the Stamford product portfolio, boasting an efficient electromagnetic design and highly effective cooling system in a compact package.
The Stamford P6– LVI634G provides customers with an alternative generator for standby and island mode operation in the 1,250kVA power node versus the Stamford PI734A. The PI734A is suitable for all continuous and prime power operation modes including; paralleling to the grid, marine, CHP and critical protection.
Diesel light towers from WANCO Wanco light towers use advanced technology to achieve superior illumination - exceeding government regulations for worksite illumination. With four 1,000-watt light fixtures atop a 30-foot variable-height mast, Wanco light towers shine a uniform light pattern across the entire job site. The Wanco Light Tower’s high-output fixtures provide the most illumination for the wattage and a more uniform light pattern, virtually eliminating light pollution. For faster job-site setup and less downtime, each light fixture can be aimed independently without the use of tools, and the lights stay in place once positioned. The telescoping tower assembly is reinforced for stability and safety. Two winches raise and extend the mast, with both power- and handoperated winches available. The light tower mast rotates 360 degrees, and the lights can be operated at any height, eliminating the need to move the trailer frequently. The power system includes a choice of low-RPM Tier 4i diesel engines and high-quality fourpole generators. A 30-gallon fuel tank provides extended run times of 60 to 70 hours between refueling, depending on environmental influences. The translucent polyethylene tank offers an instant view of fuel level, eliminating the need for a fuel gauge. Wanco has created a unique innovation that greatly improves serviceability. For complete access to the engine, generator and electrical components, Wanco light towers feature a hinged top panel that rises with the mast when maintenance is required. No other light tower makes engine access this easy. The gull-wing side doors may be opened while the maintenance panel is raised, further enhancing access.
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African Review of Business and Technology - July 2014
The benefits of dieselpowered generators
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ccording to the Diesel Forum (www .dieselforum.org) today’s prime power diesel generators offer several unique features, which support a wide range of applications: Quick start-up time: 10 seconds or less. Other fuel sources may take up to two minutes, which may be too long in many emergency situations. Power density/fuel efficiency: Due to the chemical structure of diesel fuel, more energy is released per unit than any other source of commonly used power. For the same size engine, a diesel can produce twice the kilowatts of a gas engine generator. Greater power density means less fuel consumption than other sources of fuel. Continuous strength: Diesels provide a steady supply of power and can handle wide swings in power use. Turbine (jet) engines cannot easily handle these fluctuations. A diesel generator does not “flicker” or dip in power output when appliances such as a large air conditioner turn on, surge and drain power. Gas and turbine engines can slow down when strained, causing failure of the electrical equipment. To compensate for such “straining”, users may install unnecessarily oversized generators, causing significant inefficiencies and fuel consumption. Disaster utility: When a disaster such as an earthquake strikes, the first source of power turned off by utilities is natural gas due to its explosive nature and vulnerability of pipes to rupture - leaving an uncertain supply of fuel. Diesel generators have their own storage for clean diesel fuel, which is readily available and replenishable. Reliability: There is no lack of confidence about the ability of a diesel generator to provide power quickly and continuously during a power blackout. Portability: In addition to stationary units, diesel generators of various sizes and capabilities are highly mobile and available to be transported and positioned in virtually any setting to meet emergency power needs. Durability: Some high quality engines last 20,000 - 30,000 hours before their first overhaul. That’s equivalent to one and one-half million miles in an automobile.
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POWER
Generators
Cummins Power Generation studies potential of LNG As interest in Liquefied Natural Gas (LNG) grows around the world, the infrastructure of liquefaction, transportation, storage and vaporisation is expanding to keep up with demand. A white paper published by Cummins Power Generation, entitled ‘LNG – An Alternative to Diesel?,’ explores how the uptake of LNG for use in small-scale applications should act as an investment driver. What may result are larger and more widespread LNG distribution systems, which can begin to rival diesel’s long-established distribution network. The white paper outlines the origins of LNG from natural sources. It then discusses how LNG’s composition changes under storage as methane is boiled off for use, and how the storage tank is replenished with LNG of the original proportions of hydrocarbon components. As well as offering widely-recognised environmental advantages, LNG derived gas may cost less per kWh than oil-based fuel – though
delivery volumes for the same energy output may be higher because of LNG’s lower energy content per cubic meter. The paper also looks at circumstances when a liquefaction plant will be required, and compares the different risks presented by LNG and diesel spillages. Available at Cummins Power Docs (www.cumminspowerdocs.com), the paper is authored by Keith Packham, who began his career as an engineer in the UK Merchant Navy. His technical expertise brought him to Cummins Power Generation, where he supports the global Energy Solutions Business on the design, installation, operation and maintenance of energy-efficient plants. Chris Downs, global marketing communication manager at Cummins Power Generation
Inmesol products power residential areas in Benin Cotonou is the economic capital of the Republic of Benin, in West Africa. In 1960 its population barely reached 70,000, but it now has over a million inhabitants. Cotonou’s infrastructure – port, airport, railway and roads – has made it the trade axis of West Africa. Although the country’s capital is Porto Novo, the seat of government is in Cotonou, as are the
majority of large companies and banks. The official distributor for Inmesol in Benin, Cobetam reports that in the last few weeks there has been an increase in demand for the company’s soundless generator sets, the majority of which have been installed in residential buildings in Cotonou. The soundless generator sets manufacture by Inmesol are designed to
offer high acoustic insulation. They are, therefore, ideal to prevent unwanted noise in residential areas. Representatives at Inmesol have declared that the company is satisfied that its brand is being consolidated in Benin as a guarantee of quality and that its clients can attest that Inmesol generator sets are among the quietest on the market.
Cat parts from Metric Automotive Engineering
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South African distributor of IPD parts, Metric Automotive Engineering offers new cover part numbers on a monthly basis for the smaller generation Caterpillar C7, C9 and C12 engines. “We already have a fair coverage on these models and are adding to this offering on a monthly basis as IPD releases more part numbers onto the market,” Andrew Yorke, of Metric Automotive Engineering, says. “Since being appointed IPD’s distributor in South Africa in 2008, we service an increasing number of customers who recognise and are experiencing the significant cost savings associated with world class quality replacement parts.” IPD C7 aluminium pistons are constructed from a special hypereutectic alloy that has high silicon content. Hypereutectic aluminium is stronger than more common cast aluminium pistons and provides a low coefficient of thermal expansion, which allows for
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Cost effective, high quality service replacement components from IPD lower repair costs for industrial engines without sacrificing quality, engine life or job performance
African Review of Business and Technology - July 2014
much tighter tolerances. The IPD C7 rod bearings are manufactured from a sintered alloy plated with a unique overlay. This material is designed exclusively for high loads and offers excellent cavitation erosion resistance, load carrying capacity and conformability. IPDSteel articulated two-piece piston crowns for C9 engines are manufactured with a patented heat treated steel casting for high strength, durability, heat and wear resistance, as well as dimensional stability under conditions of high heat and pressure. For C9 engines, the intake valve heads are made of chrome-nickel alloy that provides excellent high temperature strength, hardness and corrosion resistance. The latest replacement parts for Caterpillar C10 and 3176C engine applications include 252 part numbers, including new InFrame overhaul kits, piston and liner assemblies and other important engine components.
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POWER
Generators
Inter-Mat sells Inmesol generator sets in Gabon Inmesol continues expanding its export network across sub-Saharan Africa. Several dozens of its generator sets have reached the facilities of Inter-Mat, the company’s official distributor in Gabon. Inter-Mat has its headquarters in Libreville, a port city which is home to approximately 40 per cent of Gabon’s population and which constitutes the commercial centre and engine of the region. The company specialises in engines and generator sets. Like all Inmesol’s distributors, Inter-Mat has an excellent technical and post-sales service, which guarantees the maintenance and repair of purchased machinery.
Inmesol’s generators are now sold in Gabon
The generator sets ordered from Inmesol by Inter-Mat are from the company’s stand-by and industrial ranges.
Backup generators delivered on site in Cape Town, South Africa, by Neptune Plant Hire (Photo: Warren Rohner)
JLG’s light towers go global and mobile on the Web An Oshkosh Corporation company, manufacturing light towers as well as aerial work platforms and telescopic material handlers, JLG Industries has developed more content, easier navigation, and streamlined access to information about the company, its products, and its services in 22 languages, for its global website at www.jlg.com. The site employs responsive design, so it displays in the best format for any device. It invites visitors to select one of 29 countries in eight regions, making it easier for them to find solutions for their region. The site also features improved navigation, including multiple ways to locate equipment specifications, literature, and images, to access more quickly all the information customers
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require to purchase, operate and service their JLG equipment. “The new JLG site allows visitors to find the information they need quickly and easily,” explained Alan Loux, JLG Industries VP of marketing. “Now, customers can access the JLG site from a variety of devices – computers, tablets, and mobile phones – and be assured of a consistent experience with all the same information, regardless of the device. We’ve built a framework to deliver what we believe is a bestin-class experience across all channels worldwide.” New equipment selection tools enable customers to identify more easily the equipment best suited for their specific applications.
African Review of Business and Technology - July 2014
Himoinsa bolsters East Africa and Middle East
H
imoinsa Middle East has made significant appointments in the Middle East and East Africa, both regions where the energy multinational has made impressive inroads in recent years. Ramy Mohy el Dine has been appointed as Himoinsa’s new business development director in Eastern Africa. Ramy Mohy has a distinguished track record in international business and project management and boasts in-depth knowledge of the African market, where Himoinsa has established a strong distribution network. “Himoinsa is constantly endeavouring to increase its international presence. My goal is to draw on all my personal strengths to extend the company’s distribution network in those countries in East Africa where it isn´t fully represented” said Ramy Mohy el Dine. Countries such as Ethiopia, with a population of 93mn, are bound to experience dramatic growth in demand for energy generation.
Himoinsa is constantly endeavouring to increase its international presence. My goal is to draw on all my personal strengths to extend the company’s distribution network in those countries in East Africa where it isn´t fully represented.” - Ramy Mohy el Diney
“The quality of Himoinsa’s products is one of the main drivers of the growth in the company’s market share in this region.” The other significant appointment is that of Rajeev Lalitha Rajan as product support engineer at Himoinsa Middle East, where he will help the experienced existing product support team to meet the technical needs of this region. Rajeev Lalitha Rajan has worked for a number of major energy generation companies and has a strong track record in delivering technical solutions in the diesel generator sector. His appointment underlines Himoinsa’s determination to deliver quality service in the after market area. www.africanreview.com
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CONSTRUCTION
Kenya
Crown Paints increases use of water-based paints There is greater industry interest in Kenya in the production of waterbased paints in order to comply with environmental legislation and regulations
C
rown Paints Kenya Ltd has recently claimed an 80 per cent benchmark in the production and adoption of waterbased paint. The benchmark translates into a cut down on carbon-reliant preparation raw materials in what has previously been popular as oil-based preparation and manufacturing of paints. Rakesh Rao, Crown Paints Kenya Ltd chief executive officer confirmed the achievement saying, “Today, water-based paints dominate and account for roughly 80 per cent of paints that we are selling. With environmental issues coming to the fore, paint manufacturers globally are busy formulating new products that cut down on VOCs (volatile organic compounds).” VOCs gradual decomposition lead to environmental degradation. Rao explained, “Fifty years ago, virtually all paints were oil-based. Today, advances in paint technology mean that modern, waterbased paints, often referred to as acrylic emulsions, are increasingly replacing organic solvents across a broad range of paint applications.” He was speaking in Lavington, at the ultramodern Lavington Curve building first floor that houses Crown Paints’ fourth showroom that will serve citizens in the Karen, Langata, Ngong, Kilimani and Kilileshwa among other areas in close proximity to the connecting James Gichuru Road. These clients will easily access the Lavington showroom and avoid traffic jam that leads to the other showroom in Westlands. This event marked the official opening of the showroom in addition to Crown Paints’ three other showrooms countrywide in Nairobi, Nakuru and Mombasa. While the showrooms in Mombasa and Nakuru were opened two weeks ago respectively, the company has pledged to open a further three more in Kisumu, Eldoret and Nairobi. The showrooms will stock a different range
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James of Oak Park and CEO Crown Paint Rakesh Rao at the Lavington showrooom
of interior and exterior products, he explained. “Kenya is transforming and her citizens are keen to change their lifestyles. At Crown Paints we endeavor to bring global products at your doorsteps,” Rao added. The Lavington showroom will, for instance, display designer fashion finishes, textured finishes, Italian design marbles and quartz from Kalingastone, waterproofing and construction chemicals from Pidilite. Furthermore, the Crown Paints Showroom model has gained traction and proved a more efficient and effective channel for educating Kenyans on different kinds of interior and exterior paints as well as finishes. “The popularity of our showroom model has been driven by the rise of middle and upper middle class customers who are demanding for more quality products. We have witnessed better understanding of paints through our face-to-face interaction with our customers,” he said. The showroom features the latest innovations in paints and interior finishes and offer consumers tips on how to enhance building aesthetics using quality products. It is
African Review of Business and Technology - July 2014
designed as a one stop colour expression Centre, complete with colour visualizer to simulate room sets. Crown Paints has put in place several initiatives geared to promoting use of quality products to ensure safety and long-life of buildings. It has also put in place other innovative and noble initiatives to engage its clients and customers more. It has partnered with many other specialists including ASL, the Pidilite Dr Fixit solutions for waterproofing, and the armourcoat of UK range among others. Rao explained Crown Paints’ commitment to value-addition and diversification of products to serve all socio-economic classes in the country and region and cordially invited clients especially architects and interior designers to make use of the showrooms. The company is also keenly fighting to be more competitive in pricing. It takes pride in having the best paints technology that assists clients at construction sites and especially for water-proofing. ■ Fred Ndung’u www.africanreview.com
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CONSTRUCTION
Asphalt
A point of reference for Nigerian asphalt
A new point of reference has been reached for Nigerian asphalt market
Highly flexible production for a highly adaptable product has enabled Marini to deliver support for leading-edge processes in West African construction
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n 2010 a five year strategic road map was put in place in order to ensure that the road maintenance in Lagos area could reach good levels; in particular the main targets were to increase the maintained roads, to help the infrastructural development and for this reason it was agreed to buy two new asphalt plants and a new plant with a high production (up to 180 t/h) was commissioned in Imota suburb area. A very important issue during the plant definition was the possibility of RAP use because it is very important to reuse old asphalt pavements removed from old roads (and not wasted as it has been commonly done up to now in Nigeria). The request of the technical team was to obtain maximum flexibility and to use very high percentages. For this reason they firstly decided to pretreat the RAP in order to control the quality of old bitumen and the size of recovered aggregates (the highest quality of the final product has always been a priority in the technical discussion) and it was decided to choose a plant solution with one line to the dryer (recycling ring) with up to 35 per cent recycling. Flexibility for performance Other important points evaluated during the negotiations were the possibility to control, in the best possible way, the metering processes (for each single components), the high flexibility of production to frequently change the formula as well as the possibility to produce small quantities of asphalt. The focus was on maximum efficiency, and
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performance for the production of special products (possibility to use coloured additives, fibres, etc…), with special attention to environment and working conditions. Above targets lead the customer to choose a Marini UltiMAP 2000 in 2013 and now the asphalt plant is commissioned and in production to the highest customer’s satisfaction. The customer requested a special bitumen supply management: the Imota Plant has a total bitumen storage capacity of 300 tonnes granted by no. 6 vertical tanks; the operator can easily change the type of bitumen during the HMA production and can also order the bitumen from the supplier without problems related to delivery time. These peripherals are common to all asphalt plants but the request was for new design tanks with low thermal bridges since they have to take into consideration the production process optimization, the environment and, of course, the most economical mode of production in terms of efficient use of raw materials. At the end of the day, a new point of reference is now reached for Nigerian market and we are sure that also other contractors (as already done in Imota case by Lagos State Public Works) will search for all operational optimization in order to respect the environment, to reduce the fuel consumption, to optimize the emissions and especially taking into account the target to maximize the quality of the final product. This great success has been possible with the cooperation of many people involved in this project, in particular thanks to the highly professional team work of HMD, a Marini dealer based in Nigeria. ■ www.africanreview.com
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Nigeria
CONSTRUCTION
Engineering firm gets mobile Asphalt Unity Construction benefits from going mobile with the help from Sandvik Construction
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ith the growing demand for construction materials in Nigeria, Asphalt Unity Construction turned once again to Sandvik Construction in order to help them achieve their increased production capacity. The company, based in Nigeria, began operations in 2009, and is a multifaceted engineering firm. Young, dynamic and experienced engineers from different establishments came together to put their knowledge and experience to work. Their aim was to deliver high quality engineering services
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for their clients. Now they have become one of the leading construction companies in the eastern region of Nigeria. The company has recently looked to become smarter and more competitive. Having already experienced what Sandvik stationary crushers can produce, they decided to consider the Sandvik Construction Mobile Crushers and Screens portfolio to help them achieve their annual production target thereby meeting the industry demands in the Nigerian Delta State. Mario El Fadi, director of Asphalt Unity
Construction, visited the Sandvik Construction Mobiles production facility in Swadlincote, Derbyshire, in September 2013. During his visit, El Fadi was able to see the benefits offered by the mobile plant and consequently placed an order for five tracked units. Sandvik Mobiles offer a huge amount of flexibility, with quick set up times and reliability. El Fadi commented, “We wanted a quick win situation in order to achieve our targeted capacity and one of the huge advantages of mobile equipment is that no installation is required.” ■
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CONSTRUCTION
Profile
Bobcat recently highlighted its innovations for emerging and established markets
Core leadership in construction markets At its 2014 convention in Prague, in the Czech Republic, Bobcat presented the most recent development of its brand and product portfolio
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t its 2014 convention in Prague, in the Czech Republic, Bobcat presented the most recent development of its brand and product portfolio. Prague is a strategically significant location for Bobcat, particularly with respect to the emerging markets of the Middle East and Africa (MEA) though the facility also serves the Americas and Oceania. It maintains a factory at Dobris near Prague, which is specifically geared towards supplying EMEA territories with the equipment operators need to deliver infrastructure projects on time and within budget. Dobris is where Bobcat manufactures compact loaders and mini-excavators - all important equipment for many of today's constructors in the Middle East and Africa. Under Doosan, the oldest conglomerate enterprise in Korea, Bobcat is itself emerging into a new entity, with a radically different ecosystem. Since the conglomerate's construction and mining division, Doosan
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Infracore (DI), acquired Bobcat in 2007, it has reimagined the company to become a core player in emerging markets around the world. Doosan is actively investing in technology leadership in Bobcat - particularly, with respect to innovating engine technology to meet emissions standards and support customers as they seek to lower costs and improve efficiency.
African Review of Business and Technology - July 2014
TQM is practiced to improve quality and performance to meet or exceed customer expectations by integrating all qualityrelated functions and processes
Adding value to construction projects Bobcat EMEA president Martin Knoetgen boasts of a strong manufacturing background, and had served as Bobcat EMEA VP for two years before assuming his new role in June 2012. He spoke at the convention of "adding value' to both Bobcat as a company and to its customers' businesses. He believes that the quality and performance of the company's loaders and excavators will continue to drive new business growth - but he hinted also that there will be new products in the near future, new machines to create value for constructors. Jose Cuadrado, EMEA VP at Bobcat, followed Knoetgen with specific product news, disclosing that the Dobris campus is a site of new innovation and excellence, with new product designs underway. Its manufacturing has been continually developed since 2007, producing more than 7,000 units per year, accounting for 15 www.africanreview.com
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Profile
different models for global export. Its Innovation Centre is where Dobris hosts Bobcat product development teams, incorporating dealer and customer feedback into the design of new product features and applications. The Training Centre continues to provide optimised training programmes for Bobcat employees, dealers and customers alike. The new Bobcat Diesel engine is the latest in a line of motor manufacturing which began with Bobcat's first engine in 1976. Its design began to form in 2009, with capabilities for performance and reliability to the fore from
There is a strong emphasis on the quality of production at Bobcat
outset. Whilst the new engine range will be seen in Europe initially, from 2015, on about half of Bobcat loaders produced, Doosan's aim is to see this engine serve as a global standard in the years to come, driving the adoption of engine innovations globally in all territories. For markets in MEA, Bobcat will continue to supply machines with the existing engine range.
CONSTRUCTION
Focusing on the manufacture of quality equipment Norbert Donaberger, VP global business at Bobcat, who has three decades construction industry experience, is primed to deliver growth for the company's telescopic handler business, which is produced in Pontchateau in France - where total quality management (TQM) is the principle philosophy underpinning manufacturing processes. TQM is practiced to improve quality and performance to meet or exceed customer expectations by integrating all quality-related functions and processes. This means examining overall quality measures in areas such as design and development, and maintenance, across all operational levels and involving all company employees. With respect to product portfolio, Bobcat's quality is well-represented in the advanced versions of the company’s two largest rigid frame telescopic handlers introduced late in 2013. The new T40140 14 metres and T40180 18 metres models both have increased maximum lifting heights and are based on an easy-to-use design that provides classleading efficiency and productivity backed by
Continuous asphalt plant with parallel flow
Supermobile continuous asphalt plant Specially designed for small to high and highways road works • More than 120 references in Africa • Unbeatable cost and transfer time (1 to 5 days depending on the model) without civil engineering • Low maintenance costs • Recycling rate up to 35 %
FAYAT MIXING PLANTS
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TSM 13 ERMONT TSM 15 ERMONT TSM 17 ERMONT TSM 21 ERMONT
120 TPH 160 TPH 230 TPH 360 TPH
TSM
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African Review of Business and Technology - July 2014
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CONSTRUCTION
Profile
sophisticated safety systems. Jarry Fiser, miniexcavators (MEX) product line director, joined Bobcat 16 years ago, and has - since his first day with the company - focused on developing the company's excavators. Bobcat entered the compact excavator business more than 25 years ago. Its current range of compact excavators offer three-arm configurations; a choice of conventional or zero tail swing; a comfortable cab, an exclusive all-hydrostatic drive system and what is widely regarded as an exceptional dealer network supporting the product. Bobcat's compact excavators offer many advantages over larger equipment. They feature advanced hydraulic systems, which
Bobcat’s dealer network supports customers with equipment orders
respond to loads with more usable power for faster cycles - and combine speed and power to enable operators to reduce the time it takes to complete projects. The latest innovations in Bobcat's compact excavator range are the new E17, E19, and E20 models, which will be sold first to European customers - but again are understood to represent core elements of the company's future direction in emerging market territories.
Dobris, in the Czech Republic, is where Bobcat manufactures compact loaders and mini-excavators - all important equipment for many of today's constructors in the Middle East and Africa Bobcat's loaders came under the spotlight, then, with a presentation by Mike Vought, Bobcat's loader product line director. The company makes skid steer, allwheel steer, compact tracked and mini tracked loaders - and has sold well throughout and over five decades. Most recently, Bobcat launched the S450 skidsteer loader, a new generation machine building on the success of the S130 model it replaces, by combining the advantages offered by a truly compact loader with many of the new features and improvements found on larger Bobcat models. At the 2014 Prague convention, Vought celebrated the millionth loader sale by Bobcat - a recent achievement he believes has come through a company-wide approach to market of "selling 'solutions' when selling 'machines'". â–
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Profile
CONSTRUCTION
Asphalt plants critical for large projects An asphalt plant cannot be considered just another piece of equipment in the paving process
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n Asphalt plant consists of an industrial unit and it is fundamental for road quality. On the other hand, the inputs of pavement derive from the nature with characteristics related to its origin, weather, and other phenomena that result in a wide variety of materials with unique characteristics. The plants should compile all these characteristics in order to develop a high quality end product, according to the project requirements. The understanding and type of inputs characteristics along with the time added to a growing increase of prices related to the present and future shortage have guided research aimed at seeking alternative asphalt mixes. The new technologies of asphalt mixes have as main inputs engineering know how of pavements and also the industry of equipment, currently. One highlight is the warm mixes through asphalt foam that not Asphalt plants enable the production of high quality asphalt mixtures.
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only reduce fuel consumption at the plant, but also waives the use of additives. This technique was created by the industry and it is already a reality on the job sites in Ciber continuous and discontinuous plants. Another highlight is hot recycling, created in the 30’s, used in the 70’s and reinvented in 2014 by Ciber from differentiated heating of milled material, minimising its aging and increasing its recycling rate. The last trend is the union between warm foamed asphalt and hot recycling; called Warm Recycling, this technique aims at balancing the oxidative aging of the milled with the lowest aging of warm mixes. This combination is in practical development at Usina do Brasil, with a promising success in the short-term. In the past, the plants used to be projected according to the creation of new techniques of asphalt mixes. In the present, the plants foster the creation of new mixes, a result of equipment innovation.
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CONSTRUCTION
Excavators
CCGT's aggregates demand rises Morocco’s largest quarry, CCGT Granulats, lies in a rural location between the cities of Serat and Rabat; operations there are on the rise, as demand for aggregates in the country booms
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n recent months, output at CCGT Granulats facility has risen to 5,000 cu m of aggregates per day. CCGT owns the landmark quarry, together with several others in the country, and has been expanding its equipment fleet to help with the growing workload. Among the machines added in the past year are four SDLG units from Shandong Lingong Construction Machinery Co., Ltd. (known as Lingong). Three machines are at the Granulats location and one is at its Concentrium facility close to Marrakesh. The first machine on site at Granulats was a five tonnes lift capacity LG958 wheeled loader, which arrived just 12 months ago. The quarry owners were so impressed with the SDLG machine, particularly the fuel efficiency and product support from local dealer SBMH, that a further wheeled loader, a seven tonnes lift capacity LG978, plus a 30 tonnes rated LG6300E excavator, were added. Youseff Tazi, the owner of CCGT, said the company was delighted with the output and performance of the SDLG units. “This is our first experience of using a Chinese brand at our facilities, as most of our other equipment is from established Western brands,” he said. “But we were pleased with the performance of the first wheeled loader, and when we took the second wheeled loader and the excavators we were even more pleased.” The machines were all supplied through SBMH, SDLG’s exclusive dealer for Morocco. The company is contracted to provide full service support for each machine and this reassuring level of backup was a major factor in CCGT’s decision to invest. Both the loaders work in the final phase of the quarry, loading the trucks for export. The pair have Weichai engines, the LG958 a 162 kW unit and the LG978 a 220 kW unit,
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CCGT has increased its equipment fleet to meet workload demands
although as the LG978 is a new machine with a newer engine, CCGT is reporting equivalent levels of fuel efficiency on both loaders. Vehicle weight for the LG958 is 16.6 tonnes, while the LG978 weighs 23.5 tonnes. Maximum breakout force is 168 kN on the smaller unit, and 216 kN on the larger, while bucket capacities are 3 cu m and 4.2 cu m respectively. The excavator is employed filling trucks which transfer materials to the crusher. This duty cycle work exerts high levels of work pressure on the LG6300E, but so far the unit has been more than equal to the task. Bucket capacity is 1.4 cu m on the excavator and breakout force is 198 kN. The 6.2 metres standard boom can reach out to 10.49 metres and dig down to 7.32 metres. The maximum dumping height is 7.05 metres. Power for the unit comes from a six cylinder Dalian Deutz engine rated at 149 kW at 2,000 rpm. Said Boudali, general manager of SBMH, said providing superior service was central to
African Review of Business and Technology - July 2014
building success for the SDLG brand in Morocco. “The philosophy of our company is to offer reliable and productive equipment at a competitive price and with SDLG machines we get that,” he said. “But we also understand that fast and responsive customer service is crucial to our success. So we have invested in a significant stock of spare parts and consumables at our facility plus technicians capable of reaching all areas of the country in a matter of hours. That level of support gives our customers the confidence to invest and, as with CCGT, once they see the great levels of productivity and value that SDLG machines offer they are happy to add more.” CCGT was established in 2001 and has five divisions with an annual turnover of US$24.2mn. In addition to its quarries, the group also has a company which manufactures pipe sections and one that operates as a construction contractor. CCGT employs 650 people in all. ■ www.africanreview.com
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CONSTRUCTION
Wheel loaders
Proven components, durable structures Cat’s 950 GC wheel loader offers durability, reliability and economy, adding to customer value
The new Cat 950 GC wheel loader
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elivering productive performance in a wide range of 5t wheel loader applications, the new Cat 950 GC wheel loader machine represents exceptional value. Its list of features is impressive: heavy-duty frames; Cat Z-bar linkage; performance series buckets; fuel-efficient Cat C7.1 engine; powerful load-sensing hydraulics; spacious, air-conditioned cab with intuitive controls; and unsurpassed support from Caterpillar’s worldwide dealers. The 950 GC is well-suited for stockpiling, truck loading, material handling, hopper charging and load-and-carry work in applications such as quarries, sand and gravel pits, coal operations, storage yards, concrete and asphalt plants, and on construction projects for job-site preparation, back-filling, pipe handling, and general clean up. Power train With a net power rating of 168 kW (225 hp), the C7.1 engine meets Stage IIIA (Tier 3) emissions standards and features a new fuelinjection system specifically designed for fuel available in emerging markets. An electronically controlled, hydraulically driven, variablespeed cooling fan lowers fuel consumption and sound levels, and an optional fan-drive-by pass feature allows faster warm-up in cold weather. A high-ambient cooling package is available. The 950 GC's 4F/3R countershaft, power-shift transmission, designed and built by Caterpillar, features automatic-shift capability and the Cat Electronic Long Range Transmission control system, which allows full-power shifts and includes a speed protection feature. This modulated transmission ensures smooth shifts for operators and contributes significantly to fast cycles and extended component life. Linkage, buckets, hydraulics The 950 GC features Cat’s proven Z-bar loader linkage, providing aggressive digging capabilities, high breakout forces, and lift and reach capability to competently handle a wide range of loading applications. The B-pin height and dump clearance are best in class for a 5t wheel loader allowing easy loading of on-highway trucks. Lift and bucket return-to-dig kick-outs can be adjusted to suit the application. Complementing the linkage are Cat Performance Series buckets, featuring a long floor, curved side sheets, and a wide opening to allow even less-experienced operators to attain 105- to 115-percent fill factors in minimum time, speeding cycles and saving fuel. The spill guard protects linkage, cylinders and cab from material spillage. An electro-hydraulically actuated quick coupler is available, allowing the 950 GC to use a number of Cat work tools for added versatility. Powering the loader linkage is the 950 GC’s load-sensing hydraulic system, providing fast, powerful response, allowing combined lift and
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tilt movements, while also conserving engine horsepower, saving fuel and reducing heat by creating only the hydraulic flow and pressure actually required to perform the task at hand. The 950 GC’s design is a precise balance between hydraulic cycles and rimpull which results in aggressive loading without excessive wheel spin, saving fuel and tires. Operator amenities Operator comfort and convenience is a focal point of the 950 GC’s design. The cab is spacious, featuring a comfortable, cloth-covered, mechanical-suspension seat (an air-suspension seat is available) and low-effort, pilot-operated implement controls. If preferred, joystick implement control is also available. Both types of controls have remote quick-down switches, the joystick features also a direction change switch. The adjustable steering column includes a conventional shift lever with kick-down function for added convenience. Visibility is enhanced with a large, roof-to-floor, distortion-free front windshield and standard interior and exterior mirrors. For added convenience and safety, a rearview camera system is available. Ten louvered vents allow operators to direct airflow to their liking, and air entering the cab is filtered via an easily serviced exterior filter. The dash display has analogue-like gauges, warning lights and an LCD screen, allowing the operator to quickly monitor machine conditions. For added safety, the 950 GC has a ladder on each side, allowing access to large platforms with handrails. Also, the main door opens to the front for wide access to the cab. Serviceability Hydraulic and electrical service centers provide ground-level access to grouped service points, enhancing the convenience and safety for those performing routine maintenance. Large gull-wing side panels and a tilt-up rear grille provide easy access to filters and the machine’s Scheduled Oil Sampling (S•O•SSM) ports, which can be used to collect circulating-oil samples for analysis, providing a mean for regularly checking on machine health. Adding more value to the 950 GC is the Cat Product Link telematics system, which permits location tracking, geo-fencing, and remote monitoring of operating parameters, such as hours, fuel consumption, idle time, and event or fault codes. ■ www.africanreview.com
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CONSTRUCTION
Infrastructure
Southern Africa’s improved air structures Mining firm Kalumbia plans the construction of a new airport to serve Zambia's Copper Belt
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wholly-owned subsidiary of First Quantum Minerals, Kalumbila Minerals Limited (KML) plans to construct an airport in NorthWestern Province at a cost of over US$2mn. The main objective of the proposed airport is to facilitate the movement of people and goods for the development of the Trident project in the provincial capital, Solwezi, according to an environmental impact assessment (EIA) report by KML, which has been submitted to the Zambia Environmental Management Agency (ZEMA). The investment opportunity Work on the Trident Project began in May 2012. The Sentinel copper mine, which has a life expectancy in excess of 15 years, is set to become operational later this year. Investment comes in the context of First Quantum’s commitment in region is contextualised by its support for a foreign investment promotion and protection agreement (FIPA) agreed in March 2013 by the governments of Canada and Zambia. The FIPA is a treaty designed to promote and protect Canadian investment abroad through legally-binding provisions and to promote foreign investment in Canada. By ensuring greater protection against discriminatory and arbitrary practices, and by enhancing the predictability of a market's policy framework, a FIPA gives businesses greater confidence to invest. What this FIPA does, as The Honourable Ed Fast, Canada’s Minister of International Trade, said, is “bring greater security to the business environment for Canadian companies looking for opportunities” in Zambia. Developing the project The project has already created 1,700 construction jobs - and will provide 2,000 jobs for employees, and up to 8,000 indirect job, once the mine is open. Ultimately, the mine will process about 55mn tonnes of ore a year to produce approximately 280,000 to 300,000 tonnes of copper in concentrate annually - most of which will be transported to First Quantum’s smelter at the Kansanshi mine, 140 kilometres east of Kalumbila. First Quantum Minerals decided to drive the Trident Project forward when it bought a stake, through KML, in Kiwara Limited and Kiwara Resources Zambia Limited, which held the prospecting license for the copper mine. Currently, KML is engaged in the development of potentially three new copper mines which are collectively known as the Trident project. The project implementation is expected to start upon ZEMA approval. About 40 people are expected to be employed during the construction of the airport, which will last about 18 months. ‘’In order to improve regional and international connectivity with the Trident project, KML have proposed to construct an airport and
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Kalumbila is set to gain significantly from investment in local infrastructure
associated infrastructure capable of handling larger passenger numbers as well as larger cargo aircraft,’’ the EIA says. The total estimated cost for the proposed Kalumbila town airport project is US$2mn. The project development of the airport will evolve the preparation, construction and operation phases. Under the preparation phase, the project will include site selection and clearing, and subsequent airport development. The project will entail the construction of a 2,700-metre long and 42metre wide airport. Additionally, the project will involve the construction of a fuel storage area, parking, terminal building and a control tower. The project will be designed and constructed by KML, but is likely to be transferred to and operated by a third party during the operation phase. ‘’To maintain maximum safety at the airport, it will be necessary to carry out clearing activities around the airport, especially during the rainy season. This will aid visibility and prevent wildlife encroachment,’’ the report adds. The project is also expected to have positive and negative impacts on the environment and the economy of Zambia. It is envisaged that the project will have positive impacts on the local, regional and national level, resulting in improved regional transport, tourism and economy of the project area. Negatively, the project is expected to cause air pollution, land degradation and ecological disturbances. ■ Nawa Mutumweno www.africanreview.com
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Diamonds
MINING
Recovering fine diamonds A
specialised five-tonnes per hour (tph) dense media separation (DMS) pilot sampling plant designed by SNCLavalin’s South African office could pave the way for the increased reclamation of very fine diamonds from scrap material.
The innovative containerised plant was ordered for deployment at a mine in Russia. It is the third order that has been placed with SNC-Lavalin’s South African office in recent times for this region, the company said. “The new five-tph DMS sampling plant has been
designed to process the fine dump material previously generated by the operation’s autogenous grinding (AG) mill,” says Roger Rousseau, manager of the modular group at SNC-Lavalin’s South African office. “The material contains a high amount of minus 0.5mm materials, mostly clay and other fines, and our scope was to treat material from minus 2mm to plus 0.5mm. “This was handled as a fast-track project because we needed to ship the containerised plant to site before the onset of winter in the northern hemisphere. However, since winter temperatures in this far eastern region of Asia drop as low as minus 60°C, the recovery plant will only operate during the summer months,” Rousseau adds.
Containerising operational equipment has several advantages” The full scope of the order involves the design, manufacture and commissioning of the five-tph pilot plant, comprising front-end scrubbing and screening and a DMS plant to recover diamonds from alluvial and kimberlitic deposits in the required range. The plant was designed and executed by a dedicated modular team at the Johannesburg office. This specialised team was established three years ago to meet the increasing market demand for compact plants that can be split into smaller sections and transported in containers to all parts of the world. The five-tph DMS sampling plant was skid mounted and shipped to site in two containers. Rousseau comments that the trend towards containerising operational plant equipment has a number of advantages, including simplified logistics and a reduction of the time spent on site, since the equipment can be cold commissioned at the SNC-Lavalin yard before being despatched. “The modular team is made up of highly skilled professionals who are able to multitask on any given project,” Rousseau adds. “This invariably creates a price advantage for SNC-Lavalin when tendering for smaller projects.” ■ www.africanreview.com
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MINING
Gold
Atval’s largest-ever pinch valves Order for AngloGold Ashanti leads to employment and product development, following extensive design, tooling, manufacturing and testing processes
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outh African pinch valve and knife gate valve manufacturer Atval recently manufactured and delivered three 800mm pinch valves for AngloGold Ashanti. The valves were delivered onsite in September 2012 to the AngloGold Ashanti Siguiri mine in Guinea, West Africa, to enable the project to increase its production from nine million tonnes per year to 12mn tonnes per year. The Siguiri mine is AngloGold Ashanti’s only operation in Guinea, where the government has a 15 per cent stake in the mine and the balance of 85 per cent being held by AngloGold Ashanti. In 2006, the mine produced 256,000 attributable ounces of gold at total cash cost of US$399 per ounce. Atval director Ted Atkins notes that the project was completed within four months and comprised the design, tooling, manufacturing and testing of the valves. “The 800mm nominal bore 10 bar KE series pinch valves, with enclosed body design, were fitted with B-grade heavy-duty natural rubber sleeves. The valves were installed on the ring main of the Siguiri gold plant’s tailings facility, where AngloGold Ashanti increased its pipeline from 700mm to 800mm in diameter to accommodate the increase in production,” he explains. Longer-wearing Atval director Mark Atkins indicates that pinch valves were used in this application, owing to their longevity in high-wear applications. “The valves were fitted with double acting hydraulic cylinders, which were manually actuated by hydraulic hand pumps that were welded to the side of the valves.” He highlights the fact that the requirement for pinch valves in South Africa is rarely greater than 500mm. “Larger valves are generally used in applications where there are low yields of precious metals in the rock. We had previous experience in manufacturing an 800mm valve to assist with water distribution in the Lowveld of Mpumalanga. The expertise gained from that project helped us successfully complete the AngloGold Ashanti project.” Atval manufactures all its own valves, as well as the tooling and testing needed to ensure a successful product. Mark continues, “This is an advantage that Atval has over its competitors, as it can react quickly to requests for new designs, for valves not previously manufactured. This is supported by well proven design formula and design calculations as required under the company’s ISO 9001/2008 certification. This is what ultimately contributed to Atval being chosen by AngloGold Ashanti for its Siguiri project.” According to Ted, Atval had to manufacture all the tooling required for the production of the valves. Once the tooling was completed, inhouse machinery had to be built to handle the manufacturing process. He adds, “The company’s plant is built to handle the
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Atval's factory where the 800mm pinch valves for AngloGold Ashanti were manufactured
manufacturing of valves up to 1,000mm and the technology is capable of manufacturing large sizes.” Despite a number of serious challenges related to the South African valves market with regards to labour unrest in the mining sector and overall energy price-hikes, Mark does note that the South African Department of Trade and Industry (DTI) formally announced in January 2013 the further designation of valves, manual and pneumatic actuators, electrical and telecommunication cables as well as components of solar water heaters for local production and content in the public sector procurement system. Mark highlights the fact that Atval has been working closely with the DTI over the past 18 months regarding this initiative. “This initiative will help create employment and develop the valves and associated industries. With this in mind, Atval aims to target more aggressively State owned enterprises, such as those involved in water and power generation, in the near future,” he concludes. ■ www.africanreview.com
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MINING
Gold
Improving safety for underground miners Gold mining operations in South Africa are able to ensure greater underground worker safety through the innovative Terra Drill rig manufactured locally by Mine Support Products (MSP)
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SP is jointly owned by international manufacturing and engineering company DCD Group and Robor - a world-class manufacturer and supplier of welded steel tube and pipe, cold formed steel profiles and associated value added products. The Vereeniging-based company’s range of Terra Drill in-stope integrated telescopic roof bolt drilling rigs, designed to ensure safer and more stabilised underground drilling, have been used extensively by a number of high-profile gold mining operations since being introduced locally in 2007. MSP general manager Conrad Engelbrecht points out that the lightweight and easily manoeuvrable Terra Drill rigs can be set in position, before being operated remotely from a safe distance, in order to ensure improved safety of drilling personnel underground. “Terra Drill rigs come in eight different models that weigh between 12 kg and 42 kg,
All models have a footprint of just 450mm x 450mm
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Remote control hose lengths vary from three metres to six metres
which improves transport and manoeuvrability in confined underground working areas. Despite their varying sizes, all models have a footprint of just 450mm x 450mm for further space saving,” he explains. All MSP Terra Drill rigs are air operated at an optimal pressure of 400 kPa to 500 kPa, which results in a pneumatic thrust of at least 200kg. Remote control hose lengths vary from three metres to six metres to ensure that the drill operator is a safe distance from the powerful drilling rig. Another major benefit of the MSP range of Terra Drill rigs is that the units are compatible with a wide variety of underground drilling machines, thereby eliminating the need for purchasing costly additional connection and safety equipment.
African Review of Business and Technology - July 2014
Despite the distinct advantages of the MSP range of Terra Drill rigs, Engelbrecht admits that the company faces a number of challenges in promoting the equipment. “Although in-stope roof bolting is essential to underground worker safety, it is not a legal requirement. In challenging economic conditions, a number of local mines are therefore not willing to invest in new technology.” Engelbrecht remains optimistic that the Terra Drill rig range will gain market share in the long-term. “Mining operations in South Africa continue to place a greater emphasis on safety, and the value of the Terra Drill rig will become more apparent to the mining houses, when they weigh the initial cost of purchase against the risks of unprotected underground drilling,” he concludes. ■ www.africanreview.com
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WEB SELECTION
African Review/On the Web
A selection of product innovations and recent service developments for African business Full information can be found on www.africanreview.com
CEC signs US$220mn deal to build Sierra Leone power plant
Kenyan county to mine diatomite with Chinese firm
Zambia's power generation major Copperbelt Energy Corporation (CEC) has signed an investment deal worth US$220mn with the government of Sierra Leone to build a 128MW power plant in Freetown. The plant will be constructed in Wellington in the east end of Freetown, according to government officials. Through its subsidiary CEC Africa Investments Limited (CECA), CEC will also The new plant to be set-up in focus on developing power infrastructure Sierra Leone will have a capacity of 128MW and training locals in Sierra Leone. africanreview.com/energy-a-power/power-generation/
Kenya’s Baringo County has signed a US$71mn deal with Chinese firm Chuansian International Company to mine 200,000 tonnes of diatomite annually. Located in the Rift Valley region, Baringo County is rich in ruby, iron ore, gold, manganese and fluorspar — with many of these natural resources lying unexploited. Benjamin Cheboi, county
Indian companies to tap into Africa’s mining and power sectors A number of Indian companies stated their intention to invest in Africa’s mining and power sectors at the recently held 11th edition of the West African Mining and Power Exhibition (WAMPEX). The expo, held in Accra, Ghana, and was organised by the Confederation of Indian Industry (CII) with the support of India's commerce ministry. Rachna Jindal, deputy director of CII, commented, “There are lots of opportunities in Ghana, and for that matter Africa, for Indian companies to take advantage, and so, the companies from India have come to showcase what they can offer. We have the technology that is appropriate and are ready to make our expertise available to those countries that need it.” africanreview.com/construction-a-mining/excavation/
Ex-Im Bank to fund US$1bn GE venture in Angola The Export Import (Ex-Im) Bank of the US has agreed to finance a deal worth US$1bn between GE and the government of Angola to purchase railway and energy equipment. The US-based lender will help GE with funds to rebuild Angola's transport, electricity and communication networks, which were destroyed by war in 2002. The loans from Ex-Im Bank will include US$350mn for locomotives and US$650mn for GE has been working in the power and power equipment. energy generation sectors of Angola from 1967 and will look to help rebuild africanreview.com/ part of the country's infrastructure financial/economy/ (IMAGE: Chuck Miller/Flickr) www.africanreview.com
governor, said, “Over 300 jobs will created by the deal with further growth expected in local economic activities. We will offer an enabling environment to attract local, intercounty and international investors. We are liaising with the central government to ensure security for the investors.” africanreview.com/construction-amining/quarrying/
African nations ‘not fully compliant with airline quality standards’ African countries are facing challenges to comply with requirements on quality management systems of the International Civil Aviation Organisation (ICAO), the World Meteorological Organisation (WMO) has stated. During the official opening of the second bureau of the African Ministerial Conference on Meteorology (AMCOMET) in Zimbabwe’s capital Harare, Michel The WMO said that out of 17 member nations, only seven have undergone external audits on Jarraud, secretary general aviation quality management (IMAGE: Jez/Flickr) of the WMO, said, “Out of 17 members of the Agency for Aerial Navigation Safety in Africa and Madagascar (ASECNA), only seven have recently undergone external audits and are working on the non-conformances identified. Others have started the process and in total 11 members are certified with a number at advanced stage of the quality management system implementation.” africanreview.com/transport-a-logistics/aviation/
ECOWAS to integrate renewable energy development in West Africa The Economic Community of West African States (ECOWAS) has announced that it is working on a common agenda to develop renewable energy across West Africa. In order to speed up the implementation of renewable energy projects, governments from different West African nations will adopt a common strategy to speed up the adoption and development of different forms of green energy. africanreview.com/energy-a-power/renewables/ African Review of Business and Technology - July 2014
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SOLUTIONS
Minerals Increasing safety and reducing costs with collision warning systems for miners
B
ooyco Electronics’ Collision Warning System has provided the local and African mining industry with a cost effective and efficient way of increasing employee safety. The system effectively reduces downtime by eliminating collisions between vehicles, as well as collisions between vehicles and pedestrians. “The biggest contributors to on-site mine accidents are noise and vehicle blind spots," Anton Lourens, managing director of Booyco Electronics said. “Our primary objective has always been to supply dependable collision warning systems that address the specific needs of the industry. As the operator of one of the largest footprints of such technology we have been able to take specific feedback from our customers and, together with our strategic alliance partners, further develop our systems.” A critical element in the design of the Booyco Electronics CWS is its ability to transmit signals through rock in the underground mining environment. The system contains a sensing device that is able to detect the presence of an object (vehicle or person) in real time and relay an audible and/or visual warning alarm to the equipment operator. As it develops closer partnerships with customers, the company
A critical element in the design of the Booyco Electronics CWS is its ability to transmit signals through rock in the underground mining environment
has been able to leverage our sensor technologies for varying applications including video cameras and radio frequency identification (RFID) systems. Very-low frequency (VLF) RFID is proven as the only successful technology for CWS. Lourens explained that VLF and ultra-high frequency (UHF) is the optimum combination in a solution in terms of enhanced accuracy and reliability. VLF is ideal for warning pedestrians who work or move near
machinery and UHF signalling is used to warn equipment operators of the presence of other vehicles. Both frequencies are incorporated in Booyco Electronics’ CWS technology. “VLF is now accepted by the mining industry as the only reliable technology for collision warning underground. This is due to its ability to penetrate rock, so even when a pedestrian is around the corner or on the other side of a rock wall, they will receive ample warning that a vehicle is approaching. Similarly, the equipment operator will be alerted to the presence of pedestrians so that he may proceed with due caution,” Lourens said. VLF technology provides an extremely stable and predictable system which can be set to function within predetermined zones, with a high degree of accuracy. As a bonus, it is not adversely affected by surrounding equipment, so interference is not an issue. “Ultimately, mines require a warning system that provides them with the dual benefits of enhanced uptime and compliant safety practice. The collision warning systems supplied by Booyco Electronics provide a single source supply for reliable and accurate warning, locating and monitoring systems capable of operating in uniquely African conditions,” Lourens concluded.
Both VLF AND UHF are incorporated in Booyco Electronics’ CWS technology
The collision warning systems supplied by Booyco Electronics provide a single source supply for reliable and accurate warning, locating and monitoring systems capable of operating in uniquely African conditions
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SOLUTIONS
Packaging Meeting Africa's rapidly growing demand for beverage products Liquid packaging solutions provider Sidel was recently awarded a major project to introduce a new line in Ikeja, Nigeria, by the Nigerian Bottling Company (NBC). NBC is an affiliate of Coca-Cola HBC, one of the world's largest bottlers of products for the CocaCola Company. NBC operates 13 plants throughout Nigeria, serving as many as 160mn people. Its plant in Ikeja, the suburb in the state capital, Lagos, has been running since 1978. Sidel's new bottling line will be dedicated to the extra production of carbonated cola at the Ikeja plant which is responsible for the production of all formats of the Coca-Cola, Coca-Cola Light, Fanta, Sprite, Schweppes, Cappy, Five Alive and Eva brands. The new bottling line will be producing PET bottles in 500ml format at a capacity of 42,000 bottles per hour, and in 1,500ml format at a capacity of 22,000 bottles per hour. "The quality and safety of our beverages are our highest priority, which is why packaging is so vital. At the same time as protecting the liquid, we want our bottles to stay attractive across the supply chain and on the supermarket shelf, and offer a good consumer experience thereafter," said Costin Barbu, engineering director at
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Coca Cola HBC. "We therefore work with partners like Sidel to drive innovation and identify new ways to improve packaging that creates value for us and our consumers." I N
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EQUIPMENT/ CLASSIFIED
Multi-purpose machines for multiple dredging scenarios Produced by Aquamec, part of the Lännen group of construction machinery companies, Watermaster is an amphibious multi-purpose machine. Aquamec has sold these machines, which are manufactured in Finland, to public and private sector customers in South Africa, Zambia, Tanzania, Kenya, Nigeria, Namibia and other countries around the continent. Africa is a growing market for the company. Aquamec's machines are used for many types of dredging applications - from mining through to marine sector projects - but the majority are used for environmental reasons. Watermaster is operated in shallow water areas - for example, shipyards - of 0-6m depth. This distinguishes the product from dedicated equipment such as long-reach excavators, amphibious excavators, and backhoe and suction dredgers, in that it can take on the roles of all these machines, to handle all these application types, merely by changing the machine tooling.
Designed for dedicated projects, and for different purposes Watermaster is becoming increasingly important for many municipalities and governments in Africa - in cleaning, maintaining and restoring
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African Review of Business and Technology - July 2014
www.watermaster.fi
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Advertiser’s Index AKSA Jenerator Sanayi AS ..........................................................................................33 Al Fajer Exhibition & Services ....................................................................................61 Ayerbe, S.A.........................................................................................................................37 Bank of Africa ......................................................................................................................2 Betonblock / Legobeton BV........................................................................................56 Ciber Equipamentos Rodoviarios Ltd ......................................................19, 21, 23 Doosan Infracore ............................................................................................................15 Eko Hotel and Suites......................................................................................................36 Eksen Teknik Sunger San ve Tic Ltd. St....................................................................40 Emirates..............................................................................................................................71 F G Wilson Engineering Ltd.........................................................................................13 FLSmidth (Pty) Ltd. ........................................................................................................65 Geo Professional Services Ltd ....................................................................................27 Himoinsa, S.L. ..................................................................................................................39 Hysen International........................................................................................................29 J. S. Corrugating Machinery Co. Ltd.........................................................................69 Kirloskar Oil Engines Ltd...............................................................................................72 Kohler Power Systems ..................................................................................................43 Liebherr Export AG ........................................................................................................51 Man Diesel & Turbo ........................................................................................................49 Mantrac Egypt..................................................................................................................45 Marelli Motori SPA ............................................................................................................9 Marini S.p.A. - Fayat Group ..........................................................................................53 Marini-Ermont..................................................................................................................55 Metalgalante S.p.A. ........................................................................................................25 Multotec Group ..............................................................................................................63 Pan Mixers South Africa (Pty) Ltd..............................................................................57 SDMO Industries ............................................................................................................47 Shandong Shantui Construction Machinery Imp. & Exp. Co. Ltd ................11 Veyance Technologies SA ............................................................................................33 Volvo Construction Equipment AB ............................................................................5 Volvo Penta International ..............................................................................................7 Wuxi Baifa Power Ltd. ..................................................................................................17 YelloGen Ltd......................................................................................................................41
natural waters. Watermaster can be transported as a complete unit, making logistics easy. It can unload from a truck by itself, too - meaning no crane is needed for unloading on site. In water, it moves at up to four knots per hour. It anchors itself independently; conventional machines often need separate anchors. Almost always, Watermaster machines are sold with both a pumping capability and a backhoe capability. For backhoe dredging work, it can utilise a 500l bucket, and can use a clamshell bucket. It can remove vegetation, from the surface and at the roots; more conventional machines can take vegetation only at the surface. For pile driving projects, there are different attachments to use. Watermaster can be deployed for simple piling such as the installation of wooden poles - or more complex work that might involve, for example, the use of metal sheets.
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