African Business Coverage
ISSUE
10
Featuring Anglogold Ashanti, Lucara Diamond Corporation, Nambia Aiports Company, CONCO, eThekwini Municipality... 1
Imagine one independent energy operation with expertise in sourcing, storing, blending, packaging and distributing energy products. Over the past 25 years, our success across sub-Saharan Africa has led to the creation of a number of complementary products and services. Integrating these enables us to offer the benefits of one, smooth, efficient and highly reliable operation. Imagine Oryx Energies—bringing you the fuels, lubricants and LPG that drive your success. www.oryxenergies.com
African Business Coverage Issue 10
Your energy partner of choice in Africa.
ediTOr’S nOTeS Welcome to Issue 10 of African Business Coverage, Yet again we are pleased to feature a range of companies from across the continent spanning several sectors. This includes global mining powerhouse AngloGold Ashanti, headquartered in Johannesburg, South Africa. The company is one of the world’s largest gold extractors producing millions of ounces each year and as a result, a significant global employer to people from varying ethnicities and cultures. We also feature Namibia Airport Company, which is responsible for managing eight airports in Namibia. A State owned enterprise, NAC has impressive improvement plans and a vision to become a world class service provider in airport operations and management. We also take an in-depth look at CONCO, which is renowned for its ability to produce high-quality and customised electrical infrastructure solutions on a highly cost-effective basis. CONCO is one of just a handful of high-voltage electrical companies in South Africa with a 9EP rating from the CIDB. Its reputation has been built on an ability to deliver multidisciplinary engineering solutions, which are fully project-managed in house from inception to implementation and delivered on time. We hope you enjoy learning more about these exciting African companies and their endeavours in 2015 and beyond. Oliver Moy
African Business Coverage OKM Media Ltd, 66 Prince of Wales Road, Norwich NR1 1LT PubLisher Oliver MOy OkM@AubusiNessCOverAge.COM DesigNer SaM WOOd sAM.wOOD@AubusiNessCOverAge.COM heAD Of reseArCh abi abagun Abi@AubusiNessCOverAge.COM
Issue 10 Contents
6 Industry News
Company Reports 16 Anglogold Ashanti 22 Lucara Diamond Corporation 28 Namibia Airport Company 36 Conco 42 eThekwini Municipality 50 Wilderness Holdings Ltd 58 Paramount Trailers
Industr African Business Coverage Issue 10
ry news 7
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MuHaMMadu buHari eleCTed PreSidenT OF nigeria Former military ruler Muhammadu Buhari has become the first opposition candidate to win a presidential election in Nigeria. Gen Buhari beat incumbent Goodluck Jonathan by more than 2.5 million votes. Mr Jonathan telephoned his rival to concede defeat. “I promised the country free and fair elections. I have kept my word,” Mr Jonathan said in a statement. He said he had conveyed his “best wishes” to Mr Buhari, and urged “those who may feel aggrieved to follow due process... in seeking redress”.
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A spokesman for Gen Buhari’s All Progressives Congress (APC) party praised Mr Jonathan, saying: “He will remain a hero for this move. The tension will go down dramatically.” Nigeria’s electoral commission officially declared the 72-year-old general the winner of the presidential election. The APC won 15,424,921 votes and Mr Jonathan’s People’s Democratic Party (PDP) gained 12,853,162 votes.
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sOuTh AfriCAN gOverNMeNT TO reTAiN CONTrOLLiNg sTAke iN eskOM Finance Minister Nhlanhla Nene has said that government will retain a controlling stake in struggling state utility Eskom, adding that power shortages were the biggest risk facing the economy.
The Treasury had said it was asked by a government-appointed commission to consider a proposal to partially privatise Eskom or sell some of its assets to secure further funding to expand generating capacity.
Mr Nene said the key to resolving the crisis at Eskom was intervening to contain costs.
Separately, Mr Nene said crucial public sector wage talks with unions were making good progress.
Eskom’s funding gap to 2018 is estimated at R200bn, while it expects to receive R23bn from the government this year as it battles to keep the lights on.
About 1.3-million teachers, police officers and health workers will vote this week on the government’s offer of an inflation-linked wage increase.
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WOrld banK aPPrOveS $45M lOan FOr TanZania TO iMPrOve Mining SeCTOr The World Bank has approved a $45 million loan for Tanzania, Africa’s fourthbiggest gold producer, to help improve its mining sector especially among small-scale producers.
in jewellery-making and help them access markets and financing, the bank said.
The funds will help to create a viable domestic mining industry in poor, rural areas where unregulated artisanal and small-scale mining takes place, Philippe Dongier, the Bank’s country director for Tanzania, said in a statement.
Dozens of small scale miners are killed each year in collapsing mines in Tanzania where unsafe and unregulated illegal mining is widespread, in the country ranked Africa’s fourth-largest gold producer after South Africa, Ghana and Mali.
The project will train small-scale miners
Tanzania also has deposits of coal, uranium, diamond and precious stones.
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suNeDisON AwArDeD CONTrACT TO buiLD 86 MegAwATT sOLAr POwer PrOJeCT iN sOuTh AfriCA SunEdison, the best-performing US solar company, has been awarded a contract to build an 86-megawatt power project by the South African government. The company will build the Droogfontein 2 solar project 20 kilometers (12.4 miles)south of Kimberly in South Africa’s Northern Cape Province, the Maryland Heights, Missouri-based developer said in a statement. Solar power plants are competitive with fossil-fuel energy and can be brought online “far more quickly than conventional power plants” to help relieve South Africa’s strained electricity grid, Enrique Collado, SunEdison general manager for Africa, said in the statement. SunEdison expects to complete solar and wind projects with 2,100 to 2,300 megawatts of capacity this year. Installations are expected to rise next year to 2,800 to 3,800 megawatts.
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In South Africa, the company has developed 130 megawatts of projects since entering the market in 2011. Eskom, the country’s national utility, will purchase the power from the project under a 20-year purchase agreement.
dangOTe Planning TO inveST $2.5bn in gaS PiPeline Africa’s wealthiest man, Aliko Dangote plans to quadruple the supply of gas to Nigeria by building pipelines that maybe be backed by Carlyle Group LP and Blackstone Group LP, the world’s two biggest private-equity firms. Dangote, who has a reported net worth of $15 billion, will invest up to $2.5 billion in two sub-sea 550-kilometer (341-mile) pipelines running from Nigeria’s oil and gas-producing Niger River delta region to the commercial hub of Lagos. The pipes will increase the amount of gas available in Africa’s biggest economy to 4 billion standard cubic feet per day from 1 billion, he said.
and about 70 percent of electricity plants are fueled by gas, according to Dangote. Dangote, who has interests ranging from cement to sugar and oil refineries, plans to start laying the pipelines before the end of the year, he said. The first one should be ready by mid-2017.
While Nigeria has gas reserves of about 180 trillion cubic feet, more than any other African country, most of what’s produced is flared or exported because of a lack of infrastructure to transport it to local companies and households. Boosting domestic supply will help increase electricity generation in a country where power cuts are common
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Kengen WinS aWard FOr beST aFriCan energy COMPany OF THe year Kenya’s largest power producing company- KenGen has triumphed in scooping the title of the best Africa Energy Company award for 2014/15 in an event that was made up of utility companies in Africa. “KenGen is proud and happy to be on the lead in moving the country towards self-sufficiency and providing reliable, affordable and renewable energy,” said KenGen Managing Director and Chief Executive Albert Mugo after receiving the award. The company was competing against Umeme of Uganda, Electricity Company of Ghana Limited, Nigeria’s Niger Delta Power Holding Company Ltd and Uganda Electricity Transmission Company Limited and they managed to carry the award home. The Kenya Electricity Generating Company (KenGen) which succeeded to commence on the Olkaria geothermal steam generation project was positioned eighth in the steam energy production category worldwide.
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The ceremony took place during the annual African Utility Week and Clean Power Africa event in Cape Town, South Africa which saw 700 of Africa’s water and power industry professionals attend. The event seeks to identify and recognize exceptional utility companies in the continent. KenGen is the largest power producing company in Kenya producing about 72% of the electricity consumed in the country.
CAPe TOwN reMAiNs NuMber ONe DesTiNATiON fOr busiNess eveNTs iN AfriCA Cape Town has retained its position as the number one destination for business events in Africa, according to the latest International Congress and Convention Association (Icca) Country and City rankings. The destination moved up by 11 rankings in terms of worldwide performance to number 41. Cape Town hosted 58 international association meetings, up 13 from the previous year. Johannesburg is in second position in Africa, followed by Marrakech (Morrocco) in third and Durban in fourth spot.
“Cape Town has remained on top because of our collaborative approach, our excellent service offering, and our levels of professionalism. The Cape Town city region has global appeal, and our world class infrastructure including the award-winning international convention centre and airport - combine to make us the first choice conferencing destination in Africa,” said Harris.
Tim Harris, CEO of Cape Town and the Western Cape’s official tourism, trade and investment promotion agency Wesgro - of which the Cape Town and Western Cape Convention Bureau is a strategic business unit said the business events environment is extremely competitive, so it is a considerable achievement to retain the number one spot.
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African Business Coverage Issue 10
anglOgOld aSHanTi valuing more than just gold
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n 2014, AngloGold Ashanti celebrated its 10th birthday following the merger of AngloGold and Ashanti Goldfields Corporation in 2004. Now more than a decade on from that powerful union, what does the future hold for the world’s third largest gold mining company? There is no doubt that AngloGold Ashanti, headquartered in Johannesburg, South Africa, is a global mining powerhouse. Aside from the fact that it presently runs 20 separate active operations in 10 countries spanning four continents, it is also continuing to identify viable sites in both new and established gold producing regions across the world. It is one of the world’s largest gold extractors producing millions of ounces each year and as a result, a significant global employer to people from varying ethnicities and cultures.
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Employing over 60,000 people worldwide cannot be easy, mixing the obvious need to please shareholders, with a delicate social responsibility to foster those communities directly affected by the company’s operations. Fortunately AngloGold Ashanti is a company with a clear and decisive plan for the way African Business Coverage Issue 10
in which it operates, ensuring that it considers people as much as profit. Whilst some companies may appear to be more interested in discussing merely the headline financials, AngloGold is a company taking as much time and effort to openly discuss its sustainability values and ethos as the financial plans it has for the future.
2014). Not stopping here, it has also endeavoured to ensure all staff are treated with dignity, respect and appreciated for the diversity they bring to the company. This ethos is married with a belief that the duties of the company also extend beyond the employees and into the wider communities, with an appreciation that AngloGold is accountable for its actions. It has gone as far as to state that it hopes communities and societies in which it operates are better off as a result of AngloGold’s presence and not the other way around. For example, AngloGold has made no secret of the fact that it requires water for mining operations to function, but that it is committed to ensuring it utilises as little as possible to avoid negatively effecting the surrounding communities or ecosystem.
It has forged an impressive policy for sustainability with a defined core strategy which revolves around many facets and not just profitability alone. A need to ensure that the safety of all employees is paramount, has been instilled across the company (resulting in the halts to production within South Africa following an earthquake during
All this said, AngloGold clearly understands its primary purpose - the extraction of a precious metal from the earth, the need for revenue growth and for meeting its obligations to shareholders. In 2014 AngloGold produced over 4.4Moz of gold (approximately 11,000 of the gold bars you see in the movies) generating around $5.2bn in gold income, ranking it as the third largest gold miner in the world. It continued to invest in capital growth projects (such as Kibali underground and the MLE2 expansion at Cripple Creek & Victoria) throughout 2014. The company also focused heavily on reducing costs and overheads throughout the year and to great success following management
initiatives. These resulted in a 5% reduction in total cash costs and an impressive 13% drop in all-in sustaining costs. It also managed to record an increase in gold production for the second consecutive year with 8% being recorded year-on-year. This has meant that despite a significant drop in the price of gold (around 10% versus 2013), the company remains as strong as it was at the end of 2013. AngloGold has recently taken the decision to shift its focus from overseas to home, with the announcement that it was willing to sell its operation in Colorado, US (Cripple Creek & Victoria) to the right buyer but only at the right African Business Coverage Issue 10
price. AngloGold has previously stated that it wants to reduce its debt and the sale of all, or a stake in, the US mine would appear to be part of an “objective to simplify and improve the overall quality of its portfolio�. However, any suggestions that this could weaken the company should perhaps be countered with a reminder of the company’s asset portfolio strength. With attributable gold ore reserves of over 57Moz and further mineral resources upwards of 230Moz (plus explorations underway for new potential sites), suggesting it is highly likely that AngloGold will be operating as a major global gold producer for many decades to come.
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African Business Coverage Issue 10
luCara diaMOnd COrPOraTiOn
African diamond producer delivering exceptional results
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ucara Diamond Corporation is a new diamond producer with the aim of building a leading African-focused diamond production and development company. Its two key assets are the Karowe Mine in Botswana and the Mothae project in Lesotho. Though in their infancy, the 100% owned Karowe Mine is a newly constructed state-of-the-art mine which was fully commissioned in 2012 and is boasting fantastic success having completed its first two years in operation. The 75% owned Mothae project has completed the trial mining stage and results will determine whether investing further in the project is worthwhile. With Karowe Mine consistently producing large, Type IIA stones, Lucara Diamond Corporation is set to boast a very lucrative future. 23
KarOWe Mine, bOTSWana Located in north-central Botswana, part of the Orapa/Letlhakane Kimberlite district, Karowe Mine is based in one of the world’s most fruitful diamond producing areas. Developed as part of the organisation’s AK6 Project, the Kimberlite at the Karowe Mine comprises a single, trilobate Kimberlite pipe. Drilling has shown that the Kimberlite bulges to a maximum area of 7ha at a depth of 120m. AK6 is a roughly north-south elongate kimberlite body with a near surface expression of 3.3ha and a maximum area of approximately 7ha at 120m below surface. The body comprises three geologically distinct, coalescing pipes that taper with depth. These
African Business Coverage Issue 10
pipes are referred to as the North Lobe, Centre Lobe, and South Lobe. The nature of the kimberlite differs between each lobe, with distinctions apparent in the textural characteristics, relative proportion of internal countryrock dilution, and degree or extent of weathering. From the beginning, Lucara Diamonds built a strong team at Karowe Mine, paying careful attention to all areas of the business. From operations, control and environmental systems to sorting and sales, Karowe Mine addresses the needs of the company and community seriously. Every single employee at Karowe Mine is a Botswana citizen and Lucara Diamonds go above and beyond to ensure local legislation is adhered to and that they utilise the experience and
advancement of experience gained in Canada.
SuCCeSS At the end of 2014, Karowe Mine’s performance was in line with forecast for the year in terms of ore and waste mined and carats recovered. Karowe recovered 815 special stones (+10.8 carats; 2013 recovery of 732 specials) during the year. This included 27 stones greater than 100 carats (2013: 17 stones) and 4 stones over 200 carats (2013: 4 stones). The plant optimisation programme is advancing to plan and the plant is expected be commissioned during Q2 2015 within the $55 million forecast cost. The 2014 tender concluded Lucara’s exceptional stone tenders for the year, in which 50 diamonds were sold for $135.6-million, at an average diamond
value of $32 468/ct. Of the 50 diamonds sold, 40 sold for more than $1-million, including eight stones that sold for more than $5-million each. The company’s strong earnings have resulted in a return on capital employed (‘ROCE’) of 63% during last year, an increase of 37% compared to 2013. This exceptional upsurge follows the increase in sales from the outstanding stone tender and Lucara Diamond’s operating and capital cost discipline. Further supporting Karowe Mine’s success in 2014, the company was awarded two precious stone prospecting licenses within the Orapa Kimberlite field in close proximity to the Karowe Diamond Mine. Subsequently, the company has ordered a bulk sampling plant and will commence work programs on the two prospecting licenses during 2015. 25
In addition, Lacara Diamond saw sales totalling 412,136 carats for gross proceeds of $265.5 million at an average price of $644 per carat during 2014. The increase in revenues of 47% or $85.0 million compared to the prior year was due to higher prices received for the Karowe diamonds and a larger number of carats being sold in the large exceptional stones tenders, which contributed $135.6 million to revenues. Established in London during the great South African diamond rush of the 1870’s, Bonas is the oldest and most established Diamond Broking and Consulting firm in the world and operates in : where we support our clients’ relationships with the sales & marketing arms of the De Beers Group of Companies; using our experience and exceptional market knowledge to deliver value on a wide array of industry related projects to clients, including diamantaires, retailers, brands, governments and bankers; leveraging our modern infrastructure, in-house systems, processes and enormous placing power to provide an easy route to market and incomparable visibility to both buyers and sellers of rough & polished.
ANTWERP I DUBAI I GABORONE I HONG KONG I JOHANNESBURG I LONDON I MUMBAI I NEW YORK I SURAT I TEL AVIV
African Business Coverage Issue 10
The exceptional stone sales resulted in an average price of $32,471 per carat in 2014 (vs 2013: $24,290 per carat, with the remaining tenders achieving $318 per carat (vs 2013: $249 per carat).
THe FuTure iS brigHT Lucara Diamonds recognise Karowe Mine as one of the best productions in the world, particularly considering the quality of the diamonds that the
mine is producing. Karowe Mine is Lucara Diamond’s first producing mine and set in one of Botswana’s most prolific diamond producing areas. To date, the mine is delivering 100% to expectation and producing truly exceptional diamonds, of those Karowe Mine has extracted a 9.6ct blue stone that sold for around $4.5 million. Following that, a 239ct stone, which is said to be the largest diamond recovered in the area for 42 years. This ongoing recurrence of large stones highlights that the resource has so much to offer. The ongoing success and strong revenues generated from Karowe mine therefore allow Lucara Diamonds to look at other opportunities that they may not have been able to invest in previously. With results that shine like the unearthed stones they’re extracting, the future looks bright for Lucara Diamonds Corporation and the Karowe Mine, Botswana.
WE MOVE DIAMONDS, BULLION AND HEAVEN & EARTH FOR OUR CLIENTS From overnight secured delivery of precious cargo to comprehensive 3rd party logistic services, Malca-Amit’s commitment to an unsurpassed level of excellence in customer service, delivers absolute peace of mind while your precious cargo is in transit. With offices and agents in 31 countries, along with a comprehensive international network of partners and affiliates, Malca-Amit constantly and consistently exceeds expectations. For more information visit www.malcaamit.com Malca-Amit Botswana Tel: +267 3188393 Mobile: +267 71328666 Email: Brett.nortje@malca-amit.co.bw / Sharon.nortje@malca-amit.co.bw
DELIVERING Absolute PEAce of mind
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African Business Coverage Issue 10
naMibia airPOrT COMPany improving and upgrading to meet Namibia’s needs
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amibia Airport Company (NAC) is responsible for managing eight airports in Namibia. A State owned enterprise, NAC was established in line with the Airports Company Act, (Act 25 of 1998) and commenced operations in February 1999. With impressive improvement plans and a vision to become a world class service provider in airport operations and management, Namibia Airport Company is well on its way to achieve just that.
HOSea KuTaKO inTernaTiOnal airPOrT (HKia) Situated 45 km east of Windhoek, the capital city of Namibia, Hosea Kutako is Namibia’s only international airport and handles over 800,000 passengers annually, with approximately 17,500 aircraft movements. With daily connections to Johannesburg, Cape Town and often to Luanda, Hosea Kutako welcomes airlines such as Air Namibia, South African Airways, TAAG Angola Airlines and British Airways. These airlines connect HKIA to international hubs such as Frankfurt, Accra, Munich and destinations such as Victoria Falls in Zambia. Namibia Airport Company has plans to improve and upgrade all of their airports in line with objectives and Hosea Kutako International is no exception. A hotel is planned to become part of the main airport as well as expansion of the terminal building and a number of additional projects in the future.
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Teltech cc
Thompson’s Electronics & Technology
Phone +264 61 237 533, +264 61 237 534 Fax +264 61 237 536 Email info@teltech.com.na
perfectly placed to offer a scenic departure, with passengers able to appreciate the beautiful Namib Desert. In line with a number of improvements that Namibia Airport Company is implementing, Walvis Bay is set to become the second International airport in Namibia. Ongoing developments at Walvis Bay airport also include expanding the terminal building to correspond with expected passenger growth as well as the introduction of a state of the art, world class landing instrument will enable movements during overcast weather conditions. This will make Walvis Bay one of few airports in Southern Africa to boast such technology.
lüderiTZ airPOrT erOS airPOrT Just 5 km from the capital, Windhoek and the central business district, Eros Airport is Namibia Airport Company’s busiest airport in terms of aircraft movements. Its reliable fuel supply makes this airport a favourite stopover destination and on top of being the centre of aircraft maintenance, Eros Airport is also Namibia’s heart for general and leisure aviation. Due to its close location to the city, Eros Airport accommodates domestic flights and tourist destinations across Namibia.
WalviS bay This airport is located 15km from the harbour town of Walvis Bay and
With direct flights from HKIA to Lüderitz four times a week, this airport provides domestic travel to the coast and mines. With upgrades of an existing terminal building and fire station nearing completion, the Airport is also transforming, with the installation of new technology and runway lights that will enable night operations as well as movements during overcast conditions at Lüderitz. Fencing-off as well as construction of back-up water tanks for the fire trucks is also underway.
KeeTManSHOOP airPOrT The Keetmanshoop airport lies about five km outside the town of Keetmanshoop, around 500 km south of the capital. It houses the Namibia Aviation Training Academy and has the capacity and conditions to become an aircraft maintenance 31
TELTECH (Thompson’s Electronics and Technology) is a solutions provider in the fields of asset management, audio and visual, aviation, meteorology, radar, security, communications, wireless technology, satellite tracking and alternative energy. TELTECH, previously Thompson Radio was established to provide services and products demanded from individuals and corporate companies not covered by Thompson radio. Thompson radio (Pty) Ltd was established in 1950 with its core function to provide communications devices and infrastructure to the Namibian population. Two way radios were designed, developed and manufactured to fulfil the needs of the clients. These developments were mainly done in the HF, VHF and UHF frequency bands. Services included the selling of air time on the community repeaters. Intercom and public address systems complimented the radio market.
Phone +264 61 237 533, +264 61 237 534 Fax +264 61 237 536 Email info@teltech.com.na African Business Coverage Issue 10
The company was sold to the new owners in 2004 after the death of the previous owner, Mr. R.A.F. Thompson. Since then a lot of changes took place as a result of new markets and technologies and hence the name change to TELTECH. Technical experience amounts to a total of 90 years in the field of Communications and electronics. TELTECH has its own manufacturing and repair workshop. The workshops are fully equipped with the required tools, instrumentation and analysers. TELTECH is a systems house which provides a variety of services and products to its clients
Teltech cc
Thompson’s Electronics & Technology
Envisaged projects include a new terminal building, increase of capacity and upgrading of electrical installations as well as the introduction of car rental facilities and a hotel. Access roads and parking facilities to improve passenger-handling efficiency were completed in 2012.
rundu airPOrT
centre for Namibia. Keetmanshoop airport also has customs and immigration services with the ability to handle cross border traffic into southern Namibia.
Just 5 km southwest of Rundu, the capital of the Kavango Region and bordering southern Angola, Rundu airport benefits from chartered tourist flights and business travellers that visit nearby game parks. Given its vast landscape, this airport boasts excellent storage facilities and unlimited potential for further infrastructural developments. Furthermore, the runaway is in very good condition, fuel facilities are available for smaller aircrafts and there is ample land to further improve this airport in the future.
OndangWa airPOrT
KaTiMa MulilO airPOrT
This airport is situated in a rapidly developing area and is the ideal refuelling stop for most flights into Angola and other parts of the continent. Ondangwa airport is located in Namibia’s north central part with a catchment area encompassing regions with the highest population density; accordingly strategic plans are in place to improve the Ondangwa Airport.
Conveniently located, this airport is the gateway to the tropical Caprivi region and the town is home to the African BIG FIVE that attracts a lot of tourists and game hunters. Situated within a two hour drive from the famous Victoria Falls and no more than four hours’ drive from the Kavango Delta in Botswana, it has reliable fuel services and receives many refuelling stops for air traffic from South Africa on course to Central Africa.
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ADB Airfield Solutions is a world leader in airďŹ eld ground lighting solutions in the ICAO and FAA ADB Airfield Solutions ismarkets a worldproviding leader inadvanced, airfield integrated and and sustainable ground lighting solutions in the ICAO FAA solutions for visual and guidance. markets providing advanced, integrated
sustainable solutions for visual guidance.
With a worldwide presence, and a 65 year legacy, ADB offers an innovative portfolio and expertise that sets new standards in safety, performance, quality, and customer More than 2000 airports inportfolio 150 countries With a worldwide presence, and a 65 service. year legacy, ADB offers an innovative and expertise thathave sets chosen new standards in safety, performance, quality, and customer service. ADB as their preferred partner for airside operations. More than 2000 airports in 150 countries have chosen ADB as their preferred partner for The ADB South African business model embraces consulting, design, airside operations. The ADB South African business model embraces consulting, design, manufacturing, supply, installation,and commissioning manufacturing, supply, installation, commissioning maintenance. and maintenance. ADB Airfield Solutions (Pty) Ltd
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ADB AirďŹ eld Solutions (Pty) 2ndLtd Floor, 3 Rivonia Village Tel: +27 (0) 11 525 9340 Cnr Mutual Road & Rivonia Boulevard 2nd Floor, 3 Rivonia Village Fax: +27South, (0) 11 525 9348 2128 Rivonia, Johannesburg, South Africa Cnr Mutual Road & Rivonia Boulevard South info-sa@adb-air.com Tel: +27 (0) 11 525 9340 2128 Rivonia, Johannesburg, South Africa Fax: +27 (0) 11 525 9348 www.adb-air.com
info-sa@adb-air.com
Namibia Airports Company identified that a strategic corporate focus would be crucial to enable it to serve its clients and improve financial sustainability, the following areas have been recognised as key matters to focus on: - Infrastructure development, maintenance, technology and modernisation; - Aeronautical revenue growth – passengers, cargo and aircraft movements; Non-aeronautical (commercial) revenue growth – vehicle parking, advertising, car rentals, retail and property - Cost efficiencies and internal processes Like all of NAC’s airports, strategic plans are in place to improve facilities. For Katima Mulio, a road leading to the airport is one of the future projects to be embarked upon, thus improving accessibility.
Flying HigH Committed to remaining focused on its objectives of ensuring the safe travel of its aircraft as well as handling operations on the ground, Namibia Airport Company is going from strength to strength in its bid to achieve world-class standards.
HuMan CaPiTal develOPMenT It’s clear that Namibia Airport values the importance of developing and maintaining good infrastructure, facilities and services at its airports. With large scale plans for improving its overall developments, it seems Namibia Airport Company is certainly on the right flight path to become a world-class provider in its field.
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African Business Coverage Issue 10
COnCO engineering energy to Africa and the Middle east
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F
or many of us it’s easy to take for granted the luxuries we literally have at our fingertips each day. For example, the modern smartphone contains more electronic processing power than the whole of NASA used to send (and land) Apollo 11 to the moon in 1969. Along with computers, televisions, washing machines, microwaves, games consoles and countless other gadgets we are afforded greater luxury than any generation before us.
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But these modern luxuries are unfortunately not without their drawbacks, after all they require the same fuel to function; electricity. Even the simplest of tasks such as reading this article requires vast amounts of it, from the power utilised by the computer used to write it, to the energy required to run the printing press or light the screen from which you read it. Electricity literally powers the modern world, yet there are still many areas where it is yet to reach and a plethora of others where we require it to go on reaching.
Renowned for its ability to produce high-quality and customised electrical infrastructure solutions on a highly cost-effective basis, CONCO is one of just a handful of high-voltage electrical companies in South Africa with a 9EP rating from the CIDB. Its reputation has been built on an ability to deliver multidisciplinary engineering solutions, which are fully project-managed in house from inception to implementation and delivered on time. Since being established in 1986, CONCO has developed a deep understanding of how to operate in demanding and sometimes challenging geographies such as Africa and the Middle East. It has been able to gear itself to overcoming many of the common obstacles such as logistics, depleted or reduced existing infrastructure which has enabled it to completed energy infrastructure projects in no fewer than 21 different African countries.
Planning & PrOJeCT ManageMenT giving THe giFT OF energy CONCO Group, based in Midrand South Africa, shares part of the mammoth task in ensuring that the lights not only continue to stay on, but actually can turn on in a greater number of places than ever before. This might not be such a daunting task in a smaller more forgiving terrain as can be found in say England or Japan, but CONCO undertakes this responsibility in both African and Middle Eastern countries, and with great success.
Installing high-voltage solutions such as substations, distribution lines, switchyards, transmission lines and wind farms, requires resolute planning and project management skills, a core strength of CONCO. The company has a strong hands-on approach to project management taking accountability and responsibility seriously, endeavouring to provide a single point of customer contact throughout the process. This end-to-end approach to the way in which it operates allows CONCO to
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provide a solution which differentiates from the competition. A ‘one-stopshop’ for the full provision of highvoltage infrastructure requirements where the designers liaise directly with the installation teams. This hugely successful approach has been implemented in over 1,000 projects for a range of governments, municipalities, mining houses, capital investment and utilities companies.
SaFeTy FirST CONCO’s pride for completing a job on-time and within budget does not extend to cutting corners though. Naturally high-voltage installations do inherently come with some safety risks, which is why CONCO has taken a straight forward approach with the company ethos of ‘Safety First’ (always, no compromise). In the company’s own words, ‘Yes, CONCO operates in a high-risk arena, but our stringent procedures enable us to deliver what we promise, minus the risk’. CONCO also continues to develop African Business Coverage Issue 10
and invest in its staff through its Skills Academy with the attitude that training is an investment in the future. The company holds a strong belief that developing and retaining talent has been and will be crucial to its ongoing success. CONCO’S ability to identify suitable people for training and mentorship within local communities and tutor them through the company’s academy allows them to be nurtured for the future. In addition to this, each employee is given key competency assessments to help streamline and optimise their career paths. With clear objectives, first class expertise and extensive industry experience it’s easy to understand why CONCO has such a solid reputation within the sector. Combined with its focus on not only providing a first rate service to all its clients, but ensuring that its staff remain safe and trained to the highest standards, it’s not hard to see the lights staying on in more places than ever before across the African continent and beyond.
ENGINEERED FOR RELIABILITY PROTECT, MONITOR, AND CONTROL CRITICAL POWER SYSTEMS SEL transforms conventional electric power systems into highly reliable energy networks. Our solutions are deployed worldwide in production operations that demand continuous power, and we support those systems with highly experienced, local engineers. ⋅ Mitigate arc-flash hazards to protect personnel and equipment. ⋅ Protect and monitor generators, feeders, buses, and transformers. ⋅ Diagnose power quality problems. ⋅ Combat cyber threats with defense-in-depth cybersecurity. ⋅ Depend on SEL Engineering Services for complete power management solutions. To explore SEL power solutions and services, visit www.selinc.com/wwd9.
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African Business Coverage Issue 10
eTHeKWini MuniCiPaliTy eThekwini hopes for harmony in Durban
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Thekwini will be Africa’s most caring and livable city where all citizens live in harmony. That’s the statement which can be found printed in numerous publications; heard from the mouths of local councillors and can be found on the city’s website. It’s a big goal and it’s a big statement of intent from this relatively new city council. The eThekwini Municipality, established a mere 15 years ago in 2000, was created following the merger of seven previously independent local councils around Durban.
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Located on the east coast of South Africa eThekwini spans an area just under 2300km² with a population in excess of 3.4 million people. It is also a widely diverse area with around 63% of residents speaking isiZulu as their primary language.
process of infrastructure investment. Each year it has overseen substantial service delivery and economic growth which has only been possible due to its ongoing effective revenue collection and first class financial management.
Since its inception, the eThekwini Municipality has been responsible for overseeing some substantial changes to the local area. This has been possible due to significant investment, partly as a result of the country hosting of the FIFA World Cup back in 2010.
However, it’s the municipality’s vision for the future which has been the key driver to success within the city. Having decided upon key basic elements which it believes all citizens, businesses and visitors should enjoy, the municipality possesses a clear understanding of how to achieve its goal. A major element of this vision is transportation, which is seen to be of vital importance, resulting in the
The City is presently spending billions of Rands yearly in order to provide fundamental services for its residents, and continuing this African Business Coverage Issue 10
council making significant strides forward to improve this vital part of local infrastructure. The most noteworthy achievements have been the multitude of upgrades to local roads with flyover bridges and dedicated lanes for public transport created. The new King Shaka International Airport also opened its doors a mere five years ago providing greater capacity and a more ‘tourist friendly’ route into Durban. Many of these accomplishments are a direct result of the municipality’s ‘2010 and Beyond Strategy’ which was intended to bring about change and benefit, but to also leave a truly lasting legacy beyond the
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African Business Coverage Issue 10
Isuzu Trucks deliver Municipal and Government services
Other key objectives on the municipality’s agenda include, ensuring a safe environment in all parts of the municipal area; creating access to economic opportunities; creating a clean and green municipality and ensuring access to municipal, health and education services is available for all citizens. What’s encouraging is the further recognition that these objectives will be best achieved by ‘growing its economy and meeting people’s needs so that all citizens enjoy a high quality of life with equal opportunities’. Statements such as this (part of the ‘City Vision’) highlight that there is real desire for economic growth within the area and the obvious benefits to all that this will bring to all those living there. This probably goes some way to explaining why there is currently a considerable effort being undertaken to promote Durban and the wider area as an alternative tourist destination within South Africa.
Service delivery not only requires efficient wheels but in many cases is conducted by a municipal crew that must be transported with the truck. Regulation 247 is a legislated risk for those engaged in construction and service industries where staff is conveyed on trucks. There’s no restriction on the number of persons that may be carried on the back of a goods vehicle but it must be empty of tools or goods – with the exception of personal effects – unless they are separated by a partition. Isuzu Truck South Africa has established a leadership role in offering Municipalities standard Crew Cab models for both medium and heavy-duty 4x2 trucks. Isuzu Trucks can supply three models with stepped GVMs at 5 200kg, 7 500kg and 13 500kg respectively. Isuzu’s N-Series Crew Cab models NMR 250 AMT and NPR 400 AMT can seat 6 and 7 respectively – both including the driver. The new heavy-duty Isuzu F-Series range includes one crew-cab model, the FSR 750 AMT at 13 500kg GVM (around 6 500kg payload) truck offering fully-homologated seating for seven – a driver and six passengers. Where increased mobility is required, Isuzu Trucks offers the NPS 300 4x4 Crew Cab with 6 200kg GVM, available in single or dual wheel applications.
For more information visit
www.isuzutrucks.co.za or call 08600 ISUZU (47898) 47
African Business Coverage Issue 10
MayOr COunCillOr JaMeS nXuMalO So what of the man charged with ensuring that the municipality achieves its vision? Mayor Councillor James Nxumalo, whom was elected in 2011, has been widely applauded for overcoming personal obstacles to attain the position he has today. His passion for politics was influenced at quite a young age being one of only two children in his family able to attend school. Undertaking the long 10km walk to and from his school each day, he was able to contemplate the conditions under which is family were forced to live. Both his parents were farm labourers and he soon realised that the lives of his family were vastly affected by apartheid and its laws. Throughout his time in education he was proactively involved with politics and later went on to join the ANC & SACP. During 1990 whilst employed as a labourer in a chicken factory he organised for fellow workers to join trade unions due to the deplorable working conditions they were exposed to. There is little doubt that these life experiences have helped to fashion him into the leader that he is today, keen to accelerate local programs, like the provision of basic services. Perhaps what sets his aside is his desire to not only increase the lives of those under his stewardship, but for those same people to have their own say in the future of the area. He has previously stated that “Service delivery should be people driven; it should not be top down. That is why public participation will be a priority.� With statements such as this underpinning the desire for a balanced relationship between local government and its citizens, perhaps its possible to consider the aspirations of a city in harmony being more than just a pipe-dream. 49
African Business Coverage Issue 10
WilderneSS HOldingS lTd Original experiences in pure wilderness
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enowned as one of the world’s most responsible tourism businesses, Wilderness Holdings Limited began life as Wilderness Safaris in Botswana in 1983. It listed on the Botswana Stock Exchange with a secondary listing on the Johannesburg Stock Exchange on 8 April 2010. Wilderness Holdings is the holding company for the ecotourism brands of Wilderness Safaris and Wilderness Collection – and the non-profit trusts of Children in the Wilderness and Wilderness Wildlife Trust. Within the Safaris brands are a variety of accommodation and experience offerings, each of which is a leader in its area. With CEO Keith Vincent sharing the same love for the outdoors that the guests he welcomes do, it’s clear Wilderness Holdings possesses a true understanding of the irreplaceable experience visiting a safari can offer. Moreover, the company prides themselves on offering both a luxurious experience that is environmentally-friendly. “Our goal is to share these wild areas with guests from all over the world, while at the same time
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to ensure the future protection of Africa’s spectacular wildlife heritage and sharing the benefits of tourism with local communities,” says the company.
delivering a unique experience for guests, fair returns for shareholders and stakeholders, while ensuring that Africa’s pristine wilderness areas remain sustainably protected.”
Wilderness Holdings Limited is dedicated to responsible tourism, which is showcased consistently in approximately 61 safari camps and lodges, and 10 overland safaris in Botswana, Congo (Brazzaville), Kenya, Namibia, Seychelles, South Africa, Zambia and Zimbabwe.
Employing some 2,600 staff from more than 20 different ethnic groups and hosting 35,000 guests from around the world each year, Wilderness Holdings recognises that people are the heart of its organisation. Offering some of Africa’s most impressive and untouched wildlife experiences, the company operate on almost three million hectares (seven million acres) of Africa’s best wildlife and wilderness reserves.
The organisation adds: “We are run by a group of likeminded wildlife enthusiasts who came together to build a successful safari business, African Business Coverage Issue 10
The company states: “Recognising that conservation is as much about people as about the environment, we have pursued important goals through our Children in the Wilderness programme, as well as through the Wilderness Wildlife Trust, both of which have helped change the face of nature-based tourism in southern Africa.”
SuSTainabiliTy, STraTegy and STruCTure The Wilderness group bases its strategy to ensure sustainability on a structure named ‘the 4Cs’. First established in 2010, this policy covers the four important pillars of their
sustainability plan: Conservation, Community, Culture and Commerce. Built into the DNA of Wilderness, sustainability specialists are employed across all 4Cs at a regional and group level of the business. This pays testimony to the focus the on sustainability at Wilderness. Summarised below, Winderness Holdings Limited consider these 4Cs as the platform from which their initiatives are constructed:
COMMerCe In order to safeguard the financial success and sustainability of the company, commerce involves creating life-changing wilderness 53
journeys for guests and clients and ecotourism offering. It’s considered by the company as the most critical element to sustainability in the modern world.
COnServaTiOn Wilderness Holdings aims to maximise the positive impact of operations on biodiversity conservation and to build and manage camps in the most ecofriendly way possible to minimise negative impact on the environment and its indigenous species.
COMMuniTy Centred around the people impacted by the organisation, from stakeholders and clients to customers and external communities: the Wilderness Group aims to create mutually beneficial relationships through providing opportunities and growth to learn African Business Coverage Issue 10
about nature, but also to love and preserve it.
CulTure This C encompasses respect for the culture of employees and remote rural communities surrounding the conservation areas. Wilderness Holdings embraces its unique culture and aim to positively influence a global culture of respect and care for the environment.
inveSTMenT and THe FuTure In 2014, Wilderness Holdings reported another excellent yearround performance against operational, service and financial targets, representing the best trading performance to date. Given the robust strategy in place it’s no surprise its investment is tactically focussed around Commerce, Conservation, Community and Culture.
On Track Solar is a leading installer of large off-grid solar plants at celebrated upmarket game lodges as well as providing solar solutions for commercial and domestic properties in Africa. On Track’s activities in the Delta dates back to 1999 supplying silent generators in game lodges in Botswana. They still supply their own sophisticated and utterly reliable hybrid generators which are synchronised with all their solar plants. On Track Solar works closely with their clients to carefully understand their energy requirements and then develops innovative and custom-designed solutions for each solar installation, so that they are impeccably optimised for their specific operational requirements and location. On Track Solar then sources, procures and installs the
solar facility including the solar panel arrays, inverters and power storage, only sourcing equipment that has been tested in Africa’s harsh weather conditions and taking environmental aesthetics and ease of access into account. On Track Solar sources only equipment and components designed and engineered to the highest standards by cutting edge European companies which ensures that the harvested solar energy can be converted to electricity at an efficiency of 95.6%. Finally, On Track Solar continues to act as a long-term partner in terms of remote monitoring the operation of the system and provides all necessary repairs, upgrades or system checks that may be required, including bi-annual inspections.
13A Cyclonite Street, The Interchange, Somerset West, 7130, Cape Town T +27 (0)21 851 8536
F +27 (0)21 852 0771
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Manufacturers, designers and installers of the following Amenities, often working under extreme pressure and in difďŹ cult conditions, in some of the most isolated areas in Africa: Dormatories, Econo Staff Accommodation, Ablutions, Canteens, Kitchen Designs, Bulk Water Heating Systems, Sewerage & Water Treatment Plants, Renewable Energy, Lodge Procurement, Service & Delivery. Full Supply Chain and Logistics services throughout Africa, Project Management, Engineering support and direct personal involvement, Ashanti Trading guarantees satisfaction on every project undertaken. 1 2 3 4 5 6 7 8
Savuti Kitchen, Widerness Safaris Botswana 5x Room Dorm with Ablutions, Wilderness Safaris, Botswana Staff Accommodation, Mombo, Wilderness Safaris Botswana Staff Accommodation, Mombo, Wilderness Safaris Botswana Management Accomodation, Chitabe, Botswana Sewerage Treatment Plant, Bushmanskloof, R.S.A. Shade Ports, Vumbura, Wilderness Safaris Botswana Taking care of the environment!
METHODOLOGY IS STEEL FRAME CONSTRUCTION
E: info@ashanti-trading.co.za T: +27 11 864 2460 F: +27 11 864 2459
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African Business Coverage Issue 10
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12 Beryllium Road, Alrode Ext 7, Alberton, Johannesburg, South Africa
www.ashanti-trading.co.za
Last year, Wilderness Holdings financed improvements in camp maintenance, sales and marketing, technology and doubling sharebased payments. In addition, significant investments were also made in camp solar energy systems in line with commitment to invest in renewable energy. The company invested in the first solar powered camps in Namibia, making it 50% solar and 50% generator powered. Offering a magnificent experience to its customers, growth came from organic expansion of existing businesses and is credited to greater volumes of sales and depreciating local currencies.
Group and success of 2014 was further reflected through a number of accolades, including various international awards for excellence throughout 2014. The most significant being the CondÊ Nast Traveller World Savers Award for Wildlife Conservation. With a vision to be Africa’s leading ecotourism organisation, creating life-changing journeys in order to build sustainable conservation economies and inspire positive action - Wilderness Holdings operate luxurious and environmentallyfriendly lodges and camps in some of Africa’s finest wildlife areas.
The investment in the Wilderness 57
African Business Coverage Issue 10
ParaMOunT TrailerS The freight transportation trailblazers in south Africa
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ollowing steady growth and the completion of a new manufacturing facility, Paramount Trailers prides itself on the quality of its products and outstanding customer service. Established in 1997, Paramount Trailers is a market leader in manufacturing and refurbishing commercial trailers across South Africa and the SADC region. Supplying innovative and cost effective solutions, Paramount Trailers has grown from humble beginnings to offer quality products and a personalised service to its customers. This focus has enabled the company to satisfy its customer’s needs and subsequently gain a loyal following and long standing, enviable reputation.
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Located in the Midvaal municipality, South Johannesburg, Paramount Trailers recently moved to its new 72,000m² manufacturing facility to facilitate company growth and demand of its products. Prior to the big move, the family-owned business was based in Alrode, south of Johannesburg, for 17 years. During that time, Paramount Trailers acquired numerous new premises to enable African Business Coverage Issue 10
the company to advance but it was in 2011 that the decision to purchase land in Kliprivier Business Park and develop a new manufacturing plant was made. “We had outgrown our existing premises and it was necessary for us to upgrade our facilities. The new premises will enable us to not only significantly increase the number of trailers we are manufacturing on
the requirements of Paramount Trailer’s customers by providing leading innovation and cost effective solutions to their transport needs.
a monthly basis but to also operate more efficiently.” Warren Marques, Managing Director, says. This investment enables the organisation to increase its efficiencies, enabling it to produce up to 100 trailers a month, from the 40 manufactured in its old facility. The plant has an onsite design department with engineers and designers working to meet
The move has allowed the company to obtain a strong footprint across South Africa and elsewhere in Africa as it continues to acquire customers around the SADC region. In addition, Paramount Trailer’s progress has resulted in a sales team expansion to meet demand; with the company now employing over 100 members of staff. “As we have developed our footprint into new markets, new opportunities have presented themselves. Our new sales team will be able to ensure that new industries and clients are exposed to the Paramount offering,” 61
comments Paulo Ribeiro, Financial Director at Paramount Trailers. From launching as a small familyrun business just 18 years ago, the company has flourished to become a leader within its industry by delivering an unrivalled service to both small and large customers. “Our intention is not to be the biggest trailer manufacturer, our goal is to continue to deliver quality products and customer service that is based on personal relationships” Marques declares. It is this ethos that has safeguarded Paramount Trailer’s success as it continues to generate and secure substantial amounts of repeat business, with some of its buyer’s on-going customers that have been using the company since its founding.
“Our company is built on a firm set of values that have been critical to establish our reputation. We have a close and personal relationship with all our clients and suppliers, enabling us to not only provide them with exceptional service but to understand their business requirements and deliver cost effective and reliable solutions” adds Marques.
SMOOTH rOad aHead Although Paramount Trailers originally focused on servicing the flat deck trailer segment of the market, the company has diversified its product portfolio considerably over the years. Now offering a wide range of products, Paramount Trailers is able to offer its clients a flexible, customised and economical solution to meet their cargo transportation
Twistlocks | Winches | Rope Hooks | Drop Side Hinges | Spare Wheel Winches Hinges | Tautline Buckles | Tautline Tensioners | Locking Gear
Supplying manufacturers of delivery vehicle bodies, trailers, semi trailers and containers for both the road and rail freight industries. We are dedicated to maintaining the Laursens brand and quality and growing its competiveness and product range in industry.
www.laursens.co.za T +27 12 666 9090 M +27 83 703 1559 E info@laurens.co.za
African Business Coverage Issue 10 A brand servicing industry for over 40 years
needs.
multiple industries.
Understanding the market and its customer’s requirements is crucial to the company. This knowledge, along with its highly trained employees and incomparable manufacturing experience enables Paramount Trailers to meet production schedules without comprising its quality, safety or efficiency goals.
Subsequently, Paramount Trailers appreciates each trade has different demands and produce quality products that are built to their client’s specifications and needs. With so many industries relying on road transport for moving raw materials, industrial supplies and fuels to name a few, the organisation is not short of potential opportunities.
Recognising that trucking is the most frequently used mode of transportation in Africa, Paramount Trailers reacts to the unique logistical requirements of every client to ensure unmatched flexibility is delivered. It is the convenience, security and efficient nature of road transportation that continues to make it the preferred method of transferring cargo across
As the freight transportation system in Africa continues to grow, it is Paramount Trailer’s ability to meet each and every customer’s individual demands along with its renowned customer service that have helped it succeed through tough economic conditions. Thriving in their new environment, the future looks to contain a smooth road ahead for the
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African Business Coverage Oliver Moy Publisher For enquiries email okm@aubusinesscoverage.com African Business Coverage Issue 10