Africa Outlook Issue 17 by Outlook Publishing

from

CROP CONSUMER to

British American Tobacco has had an operational presence in Nigeria for over 100 years

Investment profile:

angola 22 Africa Outlook takes an inside look at Angolaâ&#x20AC;&#x2122;s business and investment potential

Airtel Malawi

Spar Zimbabwe

52 Airtel is providing the highest level of data bandwidth in Malawi

106 SPAR Zimbabwe is a leader in retail innovation and customer shoppertainment

Smart Telecom 82 Smart Telecom is notoriously known for bringing outstanding value-formoney packages to mobile users AFRICA OUTOOK ISSUE 17 ALSO THIS ISSUE: arenel | amathole district municipality | daymed private hospital

W E L C O M E Dedication to the consumer

eDitoriAl

With the markets in Africa beginning to

editor: Matt Bone matthew.bone@outlookpublishing.com sub-editor: emily Jarvis emily.jarvis@outlookpublishing.com

see improved sales and foreign investment interest over the last 3 months, many companies believe this upward trend is

proDuction

down to one key factor: their dedication

production Manager: Daniel george daniel.george@outlookpublishing.com MAgAZine Design: optic Juice Ltd Martin Mitchell | Alex Cole | Nick Bond | Katherine Robinson

to customer experience. Consumers are becoming more conscious of the products they buy and do not always place price over

Business

quality; but rather on a customer service that made them feel valued and a product that will last the test of time. A shining example of a company always ensuring consumers are at the heart of their plans is Airtel Malawi, who under the guidance of Managing Director heiko schlittke, have become malawi’s number one provider of affordable mobile data bandwidth, including 3g+ and broadband for the country’s rising tech sector. on Page 100 we feature an in-depth look at Arenel, whose sweets and biscuits remain of the highest quality and are a much loved customer choice due to the company’s constant evaluation of their products through customer feedback, to ensure they always produce the best confectionary possible.

Accounts

We also feature an article on solar power and the potential changes that harnessing its power could bring to the African markets. With comparatively low levels of electrification, growing demand for power and the rising cost of fuel, the continent could benefit hugely from the exploitation of the sun’s glowing resources. In the front of the magazine, we take a look at the economic growth in Africa and how global investors are now beginning to pay closer attention to the country, thanks in-part to Africa’s strong customer base and growth potential. Finally, our latest instalment of the in-depth investment profile looks at Angola, and as one of Africa’s major oil producers, Angola’s economy has undergone a huge period of transformation in recent years, moving from the disarray caused by civil war to becoming the fastest growing economy in Africa. One of the deep secrets of life is that

Matt Bone Editor, Outlook Publishing

sales Director: Nick Norris nick.norris@outlookpublishing.com operations Director: James Mitchell james.mitchell@outlookpublishing.com senior project Managers: Arron Rampling arron.rampling@outlookpublishing.com Donovan Smith donovan.smith@outlookpublishing.com eddie Clinton eddie.clinton@outlookpublishing.com sales Managers: Ben Wigger ben.wigger@outlookpublishing.com Rahim Ali Rahim.ali@outlookpublishing.com project Managers: Callum Philp callum.philp@outlookpublishing.com Stuart Shirra stuart.shirra@outlookpublishing.com tom Cullum tom.cullum@outlookpublishing.com finance Manager: Suzanne Welsh suzanne.welsh@outlookpublishing.com Office Administrator: Donna Redpath donna.redpath@outlookpublishing.com iMAges: www.thinkstockphotos.co.uk DigitAl & it: Hamit Saka helpDesK: James LeMay

outlooK puBlishing

Managing Director: Ben Weaver ben.weaver@outlookpublishing.com chairman: Mark Weaver contAct Africa outlook / uK 22 Wensum Street, Norwich, UK, NR3 1Hy sales: +44 (0) 1603 559 145 editorial: +44 (0) 1603 559 152 fax: +44 (0) 1603 559 553 Africa outlook / sA the Colosseum, First Floor, Century Way, Century City, Cape town, 7441 tel: +27 (0) 21 527 0053 subscriptions tel: +44 (0)1603 559 152 matthew.bone@outlookpublishing.com www.africaoutlookmag.com like us on facebook facebook.com/africaoutlook follow us on twitter - @Africa_outlook

all that is really worth doing is what we do for others. - Jeff Bezos, Ceo Amazon.com

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In this issue of Africa Outlook...

MANUFACTURING

british ameriCan tobaCCo nigeria nigeria’s Leaders in Tobacco

BAT has had an operational presence in Nigeria for almost 100 years

40 06 12

news

davis & shirtLiff The Waterboys

Davis and Shirtliff are always looking to invest in the future of the company wherever possible

T E C H N O L O G Y

All the latest top stories across the month from Africa

afriCa’s market growth in Focus: economic Growth in africa

Africa Outlook takes a closer look at the reasons behind the ﬁgures

soLar energy West africa’s solar Dawn

investment profiLe angola

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With low electriﬁcation rates, West African countries are beginning to turn to the sun as a source of power

Africa Outlook takes an inside look at Angola’s business and investment potential

showCasing Leading Companies Tell us your story and we’ll tell the world

airteL maLawi Technology at your Fingertips

Airtel is providing the highest level of data bandwidth in Malawi

airteL rwanda always available, always affordable

Airtel Rwanda commands a 16 percent share of the communications market in the country

business Connexion Zambia connecting Zambia

R E S O U R C E S

110

Business Connexion Zambia will continue to innovate and subsequently prosper in the technology sector

Computer warehouse group africa’s icT entrepreneurs

mantraC tanZania assessing Tanzania’s mining Potential

Mantrac Tanzania Limited is the sole authorised dealer for Caterpillar Products in Tanzania

LOCAL GOVERNMENT

Computer Warehouse Group work behind the scenes in Nigeria’s ICT sector in order to provide the well known front-end services in use today in Africa

airteL uganda staying competitive, staying connected

F O O D

& D R I N K

Airtel Uganda are hoping to capitalise on growth opportunities in the country’s telecoms industry

airteL Zambia a Q&a with charity chanda Lumpa, managing Director of airtel Zambia

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Africa Outlook spoke to the ﬁrst female and Zambian Managing Director for Airtel Networks Zambia

mtn uganda a mobile revolution

smart teLeCom realising east africa’s Potential

amathoLe distriCt muniCipaLity Building on Their Historical Heritage This South African district is renowned for its historical heritage, tourism and agricultural landscapes

MTN Uganda is a name you can trust to always be there for your telecommunication needs

H E A L T H C A R E

Smart Telecom is notoriously known for bringing outstanding value-for-money packages to mobile users

100

areneL sweets & bisCuits experience! Quality! innovation!

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After decades of operation, Arenel’s sweet and biscuit lines remain of the ﬁnest quality

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spar Zimbabwe sparring with the Best of them

SPAR Zimbabwe is a leader in retail innovation and customer shoppertainment

daymed mediCaL Centre & private hospitaL a new Dimension in medical care

In its tenth year, Daymed continue to provide comprehensive medical care to the public

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events

Africa Outlook highlights the upcoming events across the continent

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Bright Africa Report Shows Considerable Growth in Africa iven Africa’s sustained growth rate of over 6% a year for the past 10 years, paired with slowdowns in some other emerging markets, global investors are paying more attention to Africa, and need to understand whether the continent has a place in their portfolios; and, if so, how they will access what the continent has to offer. Answering these questions accurately depends on the availability of reliable data, a commodity that is sometimes in short supply. RisCura’s Bright Africa report, now in its second year, provides insights that help analysts and investors make informed decisions about both listed and private equity investments. Bright Africa 2014 shows that accessing Africa’s growth requires both types of investment to avoid missing out on important sectors and opportunities. “While African markets develop, investors are using several channels to access African growth equity,” says Rory Ord, Head of Private Equity at RisCura. “Local listed markets give good access to financials, telecoms and consumer staples in certain countries, while private equity allows stronger exposure to consumer discretionary as well as industrials and materials, and niche sectors such as healthcare and education.” Certain other sectors such as some resources can further be accessed through foreign listed Africa focused companies. Ord says that on the whole, investors can access African

markets at reasonable multiples – a measure of the price of an investment, relative to the earnings of that investment. Listed market price to earnings multiples (P/E) average a little below the emerging markets average and are significantly below the developed market average. The consumer staples sector is the highest priced sector on the continent on a P/E basis across most markets, while other sectors are at lower levels. Private equity transaction multiples are still below global levels and are well below multiples observed in the BRICs. Private equity deal multiples are fairly consistent across major sectors in the 5-7x EBITDA range. Private equity has become increasingly easy to access with over 200 regionally focused managers now active on the continent, providing on-the-ground knowledge. Pan African and sub-Saharan funds provide for larger scale investment. Furthermore, African private equity deals use significantly less debt than other parts of the world. Merger and acquisition (M&A) activity on the continent is also included in the Bright Africa 2014 report. M&A deals have reached pre-financial crisis levels, showing

increased confidence in Africa; Asia has tripled its investment in M&A on the continent from 2007 to 2013. Since the financial crisis global flows of capital have been redirected to emerging markets on concerns over developed market growth. Africa has benefitted from these flows as improved capital availability has helped to fund high levels of growth through FDI and portfolio flows into listed and private equity. There are now 8 African economies with GDP of over US$100 billion, and around 1000 mergers and acquisitions reported each year at a value of US$30 billion in 2013. Earlier this year RisCura researched investor attitudes on Africa in a separate report, titled The Search for Returns. Respondents expect African markets to be significantly greater recipients of global capital than in the past.

Join the conversation! @BrightAfrica # B r i g h t A f r i c aR e p o r t

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decreased from April to May by R5.37 billion. Precious metals and stones decreased by R2.1 million, and vehicles and transports equipment decreased by R1.2 million. Mineral products increased by one million rand. Vegetable products increased by R618 million, machinery and electronics increased by R573 million, and wood, pulp and paper increased by R436 million.

“The April to May change in imports of goods is mainly reflected in [the] vehicles and transport equipment decrease by R2.1 million, [and the] machinery and electronics decrease by R1.7 million rand,” the South African Revenue Service said in a statement. The decrease in chemical products by R922 million also contributed to the change. “Trade statistics with Botswana, Lesotho, Namibia and Swaziland for May 2014 recorded a trade surplus of R8.99 billion. The R8.99 billion surplus for May 2014 can be attributed to exports of R10.83 billion and imports of R1.84 billion,” SARS explained. “Exports increased from April to May by R1.23 billion and imports decreased from April to May by R0.36 billion. The cumulative surplus for 2014 is R41.64 billion compared to R32.65 billion in 2013.”

“When we look at the details, what you can see is that the congestion level on [Cape Town’s] highways is much higher than in other cities. That brings up the overall congestion level, and that is probably the reason why it’s now the most congested city in South Africa.”

According to the report, Cape Town is ranked first with 27 per cent congestion, followed by Johannesburg with 25 per cent congestion and East London with 22 per cent congestion. In Europe, the report indicates that Moscow is ranked first with 74 per cent congestion, followed by Turkey with 62 per cent and Palermo in Italy with 39 per cent. “The idea of the report is if you want to tackle congestion, the first thing you need to know is where the congestion is. We can tell you where we have congested areas, and only then you can start working on a solution,” Hendrickx explained. “Traffic authorities can use these reports to actually re-design or re-look at the mobility plan of the city. Together with authorities, we want to see how we can improve the traffic flow in every single city.”

SA Trade Deficit Halved Between April and May New figures show that in May, South Africa recorded a trade deficit of R6.57 billion, compared to a trade deficit of R12.39 billion recorded in April 2014. “The improvement in the trade account reflects a sharp decline in imports, mostly machinery and equipment as well as vehicles. In contrast, exports remained relatively unchanged despite some decline in precious metal exports, which probably relates to the recent strike in the platinum mining sector,” Kevin Lings, chief economist at Stanlib, said in a statement. The R6.57 billion deficit for May includes trade with Botswana, Lesotho, Namibia and Swaziland. Exports increased from April to May by R0.45 billion, and imports T r a n s p o r t

Cape Town Becomes Most Congested City in South Africa South Africa’s legislative capital, Cape Town, has overtaken Johannesburg as the most traffic congested city in South Africa, according to TomTom’s 4th annual global traffic index. “There was a bit of a change in measurement. What we’ve done is taken much more alternative routes into account, so that’s why the results have shifted a bit, and what we have seen is Cape Town is the most congested city in South Africa than Johannesburg,” Daan Hendrickx, regional manager for sub-Saharan Africa at TomTom, told CNBC Africa.

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South Africa Ranked 13th Most Attractive FDI Destination outh Africa has become the 13th most attractive Foreign Direct Investment (FDI) destination, climbing two places for last year according to global A.T. Kearney’s 2014 FDI Confidence Index. Closing two major deals with international companies BP and Google in the past year signals a positive FDI trend for the country, according to the Index. British oil major BP, for instance, announced a US $550 million investment over five years while global search engine Google made its first renewable energy deal with South Africa’s Northern Cape Province for US $12 million. The South African government stated that they are humbled by the ranking as it shows that the country’s strategic partnership with foreign investors is gaining momentum: “The report which cites South Africa as the only country in Africa on the list of top 25 countries, demonstrates that our country’s blueprint on development is yielding results,” said Phumla Williams, acting Chief Executive Officer of the Government Communication and Information System (GCIS). “South Africa offers lucrative value and opportunities for international investor partnerships, as the country is uniquely positioned as the gateway into Africa. We also boast a distinctive combination of developed first-world economic infrastructure and an emergent market economy that gives rise to a healthy entrepreneurial and vibrant investment environment.” Williams added that the growing interest of international companies

to South Africa and its fertile business environment was made possible by the efforts of the country’s President Jacob Zuma. “South Africa has heeded President Jacob Zuma’s call to focus on changing negative perceptions held by foreign investors and thereby attract further investment. Our tax relief incentives, announced in 2011, have also contributed in attracting Foreign Direct Investment. The strengthened synergies between government and other strategic stakeholders are supporting the National Development Plan as it provides policy certainty for investors,” he said. Williams believes that South Africa’s commitment to the Renewable Energy Independent Power Provider Programme is one of the key drivers of its improved index rating. The programme which focuses on increasing electricity supply through renewable energy solutions is also aimed at creating socio-economic and environmentally sustainable growth. “As we celebrate 20 Years of Freedom, South Africans are encouraged to embrace Foreign Direct Investment and join hands with government’s initiatives that aim to achieve the country’s economic vision. This advancement proves that South Africa is indeed a better place to live in,” he concluded.

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Hisense SA Signs Esquire Technologies as Distributor Hisense South Africa has signed Esquire Technologies as its Southern Africa distributor in a move to further boost its product line. “The alignment with Hisense makes perfect sense. It not only expands our product offerings, but it also moves us strongly into the consumer and digital lifestyle products market. We have been appointed to distribute the full range of Hisense products via our reseller channel and the Virtual Reseller Network (VRN),” Asgar Mahomed, Managing Director of Esquire Technologies, said in a statement.

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“The VRN, is a world’s first, with over 500 resellers that are plugged into Esquire’s back-end to trade with their own e-commerce websites,” the statement read. Esquire Technologies is responsible for developing the VRN, which is a custom-tailored supply chain management system. Hisense South Africa is a part of the Hisense Co Limited global arm of multinational electronics and white goods manufacture, with headquarters in China. Some of Hisense’s products include fridges, air conditioners, tablets, televisions and a range of other appliances. South Africa-based Esquire Technologies specialises in IT, digital lifestyle, consumer electronics and mobility products from international vendors around the world. “The signing of this distribution deal is in line with our drive to aggressively increase our product line, going way beyond distributing computer products – which is how we started off 15 years ago,” Mahomed added. Nicky Taylor, marketing manager for Hisense SA, explained that the partnership between Esquire Technologies will broaden Hisense’s Southern Africa footprint and provide a solid leading advantage in such a market: “With our newly launched export division as well as our capacity to supply 400, 000 TVs and 400, 000 fridges annually, we are well prepared to service both our export and local markets, which remains our core market.” “The recent 350 million rand investment into our local Atlantis plant will enable us to better service and expand on our channel marketing strategy and we believe Esquire Technologies, with its expertise as a broad-based distributor and its access to multiple channels - including its VRN - is a perfect fit.”

Johannesburg Receives Top Accolade from Luxury Travellers ohannesburg International Airport’s Shongololo lounge which showcases some of South Africa’s top designers has been chosen by more than 84,000 consumers as the best luxury airport lounge in the Africa and Middle East region. The lounge which famously features furnishings from SA designer Haldane Martin, including his Shongololo couch, has raised the stakes for luxury travel in the region and won the prestigious Priority Pass award, trumping 87 other lounges within the region for the second time. Loraine Strachan of Menzies Aviation for Africa, the Middle East and India, which owns the Shongololo VIP lounge, said the award was significant and testimony to the growing numbers of high end travellers who are passing through our airports in increasing numbers. “Increased business and luxury tourist travel has upped the competitive stakes. We have seen a significant increase in the demand for exclusive private facilities from our travellers seeking added comfort when passing through busy airports. And to be recognised again by seasoned, discerning travellers from across the globe is very pleasing,” she said. The latest tourism figures show 10 million international visitors passed through South Africa’s airports in the past year The projected forecast is for a 3.5% increase in the current year. Year on year since 1994, the average growth has been 6.3%. Statistics show nearly 40% of the overseas visitors and 64% of those from Africa were business travellers.

In an effort to meet rising demand, Menzies recently expanded its business by creating a new worldclass lounge at Durban’s King Shaka International Airport. Called the Umphafa lounge, it is the only one currently on offer in that region and is designed to service the increasing number of business travellers using that airport as a hub into Southern Africa. Strachan says that the increased numbers of tourist and business travellers was driving the need for a quality experience of the calibre that was not yet available in the South African airport lounge market when it first opened the Shongololo lounge five years ago. “We designed a product to cater for premium travellers and it immediately became clear that our approach to improving the airport experience had filled a significant gap in the high-end passenger market. “Client satisfaction is paramount for our airline clients which include a number of wellknown international airlines. What really sets our lounges apart from the rest is our hospitality team who have been hand-picked for their warm and personable nature, acute customer focus and dedication to the highest standards.”

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WorldRemit Partners with Econet to Enable Instant Online Money Transfers to EcoCash Mobile Wallets In the first partnership of its kind, WorldRemit, the global online money transfer service, has partnered with Econet in Zimbabwe to offer customers instant online money transfers to EcoCash mobile wallets. Zimbabweans now have access to the full range of pay-out options that WorldRemit offers, which also include bank deposits, cash pick-up and airtime topup services. The mobile wallet service enables recipients to receive money quickly and securely on their mobile

phones. The mobile wallet can be used for many purposes, such as buying groceries, paying utility bills, buying airtime, sending money domestically, or withdrawing cash from authorised agents. Currently, 40 per cent of WorldRemit’s transactions to Zimbabwe

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AfDB Approves US$116.7 Million Loan for Mauritius The African Development Bank (AfDB) has approved a US $116.7 million loan which has been given to the Mauritius Central Electricity Board (CEB). CEB are due to work on the redevelopment of the Saint Louise Power Plant, at a total cost of US$129.7 million. The state-owned electricity utility is expected to increase the installed capacity by 60 megawatts and will contribute to bridging the gap in power supply infrastructures. The much needed loan comes after electricity supply demand projections revealed demand of customers in Mauritius is set to exceed the current generating capacity connected to the power grid by the end of next year. “The project aims to increase the firm generating capacity of the CEB so as to maintain reliability of supply, reduce

environmental impacts and stabilise the electricity supply,” said the AfDB. The project will provide four mediumspeed, four-stroke, heavy fuel oil (HFO) driven generators with a capacity of 15 MW each; a power station building; two 1,000 cubic metre tanks for the storage of HFO; and one 132 kV substation for connection of the power plant to CEB’s existing electricity grid.” This project will be the AfDB’s first major intervention in Mauritius’ energy sector.

are going to mobile phones. By way of comparison, 52 per cent of WorldRemit’s transactions to Ghana and 92 per cent of transactions to Kenya are going to mobile phones. WorldRemit launched its online money transfer service to Zimbabwe in December 2010 and it quickly became one of the company’s largest African corridors. According to the WorldBank, $519 billion of remittance payments were made in 2012, of which $2.1 billion are estimated to have been sent to Zimbabwe. WorldRemit, with its online business model, offers a more efficient, affordable and transparent remittance alternative to traditional money transfer operators. Customers can send funds from 35 countries to families and friends in over 100 destinations. Ismail Ahmed, Founder and CEO at WorldRemit, said: “This partnership with Econet makes it faster and easier for Zimbabweans to send money back home. Zimbabwe is one of our longest standing markets and we are proud to continue to innovate and deliver value for our customers there.” Econet Chief Executive Officer Mr. Douglas Mboweni added: “This is a milestone for Econet as we lead the way in the remittances space. We will continue to expand our range of services that are convenient to our customers, while contributing to the economic development and stability of Zimbabwe’s economy.”

Launched in October 2011, EcoCash has reached 4 million users and processed transactions worth more than $4 billion. EcoCash mobile money accounts now outnumber all of Zimbabwe’s traditional bank accounts combined.

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World Bank to Lend Kenya $4 Billion The World Bank have pledged $4 billion to Kenya, which will be given over the next four years, most of which will be at below commercial rates. The cash-injection will help finance new infrastructure developments and other areas of the economy in an effort to boost growth and cut poverty. Thomas O’Brien, the World Bank’s country co-ordinator for Kenya, Rwanda and Eritrea, said that the bulk of the funds – approximately $600-$800 million annually – will be in concessionary loans to the government for transport, energy and other projects. The remainder of the funds will be direct lending to firms through the Bank’s private sector arm, the International Finance Corporation (IFC), and in the form of guarantees to foreign investors. “We are going to be investing…$4 billion over the next four years to help P r o p e r t y

Sub-Saharan Africa – Real Estate Transparency Index Results The 2014 Global Real Estate Transparency Index has revealed a significant improvement in the SubSaharan region of Africa. According to the report, South Africa remains above the rest of Sub-Saharan Africa in global transparency rankings, but has made little progress since 2012. In Ghana, the establishment of Credit Reference Bureaus has enabled the creation of a database on borrowers, the report says. Consequently, this makes Ghana one of the easiest places in the region to register property, enforce contracts and access credit.

spur economic growth [and] to bring down poverty,” O’Brien told Reuters after the launch of the Bank’s Kenya strategy, lasting until mid-2018. Currently, the east African nation relies on funding from international development financiers like the World Bank for a portion of its budget, along with donors from Western nations. French Minister Henry Rotich said that the deficit in Kenya’s budget for the year starting 1st July would be KSh 342.4 billion ($3.92 billion), equivalent Highlights in the report include: 3 out of 5 of the top global transparency improvers were in Sub-Saharan Africa, whilst 5 out of 8 Sub-Saharan African markets secured a position in the Global Top 10 improvers. Kenya, Ghana, Nigeria, Zambia and Mauritius have made the world’s strongest advances in real estate transparency in 2014. “The fast-growing economies of Kenya, Nigeria and Ghana are amongst the top five improvers globally, and these countries are now clearly on the radars of international corporate occupiers seeking regional hubs for operations in East and West Africa,” noted the 2014 Index. The report praised respective governments for the improvements:

to around 7.4 percent of gross domestic product. O’Brien also said there was an urgent need to improve the business climate to raise private investment from the present equivalent of 15 percent GDP. “That means putting money into transport, energy and water,” he said. With Kenyan officials racing to build new roads, airports, seaports and energy plants to keep up with the growing demand and also to cut the costs of doing business, but O’Brien says that more is needed: “Like most economies, Kenya has been improving its infrastructure but it is still not where it needs to be.” This much needed financial support from the World Bank will also be spent on funding projects in social sectors such as education and health, in order to help the poor, O’Brien stated. 39 percent of the country’s 40 million population classed as poor, which is interpreted by the World Bank as those on a living wage of $1.25 or less a day. “The improvement in transparency in these markets is an outcome of concrete efforts taken by their governments to improve governance and the regulatory framework in order to create a more businessfriendly environment.” The East African powerhouse, Kenya emerged as the top global improver: “Kenya demonstrated an impressive improvement in its transparency score, registering the largest improvement globally,” read the report. “As Kenya has continued to establish itself as the economic hub for East Africa, growing interest from international investors has created a need for greater regulation of the real estate market.”

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growth IN AfRICA

global investors are paying more attention to Africa due to the continent’s growth rate continuing to gather pace SOURCE: OECD Africa Economic Outlook Writer Emily Jarvis

iven Africa’s sustained growth rate of over or around 6% a year for the past 10 years, paired with slowdowns in some other emerging markets, global investors are paying more attention to Africa, and therefore, they need to understand whether the continent has a place in their portfolios; and, if so, how they will access what the continent has to offer.

in summary

In 2013, Africa maintained an average growth rate of about 4%. this compares to 3% for the global economy and underscores again the continent’s resilience to global and regional headwinds. But growth performance varied widely across country

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Africa’s average growth is projected to accelerate to close to 5% in 2014 and 5%-6% in 2015”

classifications and regions. growth in sub-Saharan Africa was 5% in 2013 and is projected to be 5.8% in 2014. excluding south africa, the figures are 6.1% and 6.8%, respectively. east and west africa recorded the fastest growth in 2013, 6% or above. Furthermore, growth in low-income countries, at 6% or above, exceeded that of upper-middle-income countries in North and Southern Africa at below 3%. Africa’s mediumterm growth prospects look good. Africa’s average growth is projected to accelerate to close to 5% in 2014 and 5%-6% in 2015, thus to levels last seen before the onset of the 2009 global recession. this forecast is based on the premise of a gradual strengthening of the world economy and also on improvements in political and social stability in those African countries currently affected by conflicts. But if

Africa’s growth is expected to continue gathering pace African economies showed a remarkable resilience during the 2009 global recession and also during the past three years of weak global growth. Nonetheless, the impact of the flagging world economy has taken a toll on Africa’s growth. In some countries this has been aggravated by

political conflicts and social tensions. As a result, Africa’s average gDP growth has remained lower than before the global recession. In 2013 it amounted to 3.9% and, excluding the effect of the fall in libya’s oil production, it was 4.2% and similar to that in 2012. Africa’s growth is projected to accelerate to 4.8% in 2014 and 5.7% in 2015. If the effect of the assumed rebound in Libya’s oil production in 2015 is excluded Africa’s growth is estimated at 5.2% in 2015, Africa’s underlying growth will then have returned to the earlier path before the 2009 global recession (AfDB et al., 2013). An assumption underlying this overall favourable outlook is that the world economy will strengthen and that political and social stability in those African countries, which have been affected by conflicts, will improve.

West and east Africa remain the fastest growing regions economic growth varies widely across the continent reflecting differences in

stages of development, availability of natural resources, weather conditions, and – last but not least – political and social stability. West Africa is expected to continue its rapid growth. After some moderation in 2013 growth is likely to accelerate to above 7% in 2014 and 2015. growth in the region is widespread with most countries achieving growth of 6% or more. In Nigeria growth is mainly driven by nonoil sectors, such as agriculture, trade, information and communications technology and other services. the oil sector, which accounts for 37% of gdP and about a fifth of government revenues, is currently a drag on growth and suffers from theft and pipeline vandalism and weak investment. ghana’s growth will remain robust, boosted by oil and gas production and increased private and public investment. Côte d’Ivoire is also expected to remain on a high growth path. With improved political stability public and private investment have become important

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souRCe: oeCd africa economic outlook

the global economy should remain weak, or if political and social tensions within Africa were to improve less than assumed, growth would be lower than projected. Inflationary pressures have eased in many countries as energy prices have stopped rising and food prices have declined. these developments, together with prudent fiscal policies, have provided some scope for monetary policy to reduce interest rates. But in other countries where fiscal policy has been lax and where currencies have weakened, monetary policy has tightened to stem inflationary pressure.

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North Africa’s economic development continues to be heavily affected by the aftermath of the political upheavals in Tunisia, Libya and Egypt”

drivers of growth. growth is supported by favourable developments in agriculture, manufacturing and services. Sierra Leone is currently the fastest growing country in the region with growth mainly driven by iron and ore exports although other sectors, in particular agriculture and construction, also contribute. In Mali, the economy rebounded in 2013 after the backlash in 2012 caused by the political and security crisis and growth is expected to improve further in 2014 and 2015. In east africa, ethiopia, Rwanda, tanzania and Uganda are likely to achieve growth of between 6.5% and 7.5% in 2014/15. the main sources of growth are agriculture, industry and services. In Kenya growth is expected to accelerate from around 5% in 2013 to a little under 6% in 2014 and 2015, driven by exports and private investment and, on the supply side, by service sectors including finance and ICt and by the construction sector.

growth in Sudan continues to remain subdued. In South Sudan growth remains volatile due to the disruptions and resumptions of oil production, and prospects are highly uncertain due to ongoing conflicts. In Somalia, large support from donors has helped secure progress in peace and state building and in spite of the long conflict the country has a dynamic private sector in the more stable regions. In Central Africa, growth prospects are favourable for Chad where new oilfields come on stream, in the dRC, driven mainly by mining, agriculture and infrastructure investment, and in the Republic of Congo and in gabon where the non-oil sectors continue to grow faster than the oil sector. In Cameroon growth is broadbased, with oil and gas production, construction and services as the main drivers together with agriculture, which has recovered from the flood

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damage of 2012. But the economy of the Central African Republic is heavily affected by the political and security conflict, and prospects remain uncertain. In equatorial guinea, gdP growth was negative in 2013.

Macroeconomic prospects for Africa

Due to lower oil production and as oil production is expected to decline further, gDP will continue to shrink gradually, as the non-oil sector is too small to compensate for the fall of oil production. North Africa’s economic development continues to be heavily affected by the aftermath of the political upheavals in tunisia, Libya and egypt. as the region has also close trade links with europe it has also been adversely affected by the crisis in the euro area. In egypt, political uncertainty increased again in 2013 and growth continued to remain weak, at around 2% and is

souRCe: oeCd africa economic outlook

expected to remain weak in 2014. on the assumption that political stability and security are gradually restored the economy is projected to recover in 2015. In Libya oil production had resumed in 2012 but was again partly disrupted in 2013, which led to a fall in gDP by around 12%. given current political and social tensions and security problems economic prospects are uncertain. It is assumed that oil production will gradually resume and boost gDP growth during 2014/15. In tunisia because of continuing political and security uncertainties and the economic crisis in europe growth weakened in 2013 to less than 3%. With further improvement in political stability and security and the expected gradual recovery of the european economy, growth is likely to accelerate to 3.3% in 2014 and 4.6% in 2015. In Morocco, growth accelerated in 2013 in spite of weak manufacturing

Africa has been making substantial progress in human development. Poverty levels are falling, incomes are rising, and education and health outcomes are improvingâ&#x20AC;?

activity due to low external demand and agriculture benefited from favourable weather conditions. After some deceleration in 2014, as agricultural production is expected to weaken, growth is projected to become broad-based and accelerate again in 2015. In Algeria, after some slowing in 2013 growth is projected to recover in 2014 and 2015, driven by higher oil production. In Southern Africa, growth performance is uneven. Angola, Mozambique and Zambia recorded the highest growth of between 5% and 7% in 2013 and are projected further to accelerate to between 7% and 9% in 2014/15. growth in these countries is boosted by investment in infrastructure and investment in extractive industries. In South Africa, labour unrest and the weak global environment have depressed growth. the exchange rate depreciated during 2013 and again at

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I N

f O C U S :

E C O N O M I C

the beginning of 2014 as the tapering of US monetary policy has depressed currencies in emerging markets. With the recovery of the global economy and exports, further boosted by the weaker exchange rate, growth is expected to accelerate to 2.7% in 2014 and 3% in 2015. the relatively modest growth in South Africa is also depressing growth in sub-Saharan Africa. growth in sub-Saharan Africa excluding South Africa amounted to 5.7% in 2013 and is expected to accelerate to 6.9% in 2014 and 2015.

human Development in Africa

Africa has been making substantial progress in human development. Poverty levels are falling, incomes are rising, and education and health outcomes are improving. the Human

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g R O W t h

I N

There are now 8 African economies with GDP of over US$100 billion, and around 1000 mergers and acquisitions reported each year at a value of US$30 billion in 2013â&#x20AC;?

A f R I C A

Development Index shows 1.5% annual growth, and 15 countries are now considered to have medium to very high human development. African countries with high and rising levels of human development are well integrated into global markets with diversified exports that create employment. there is room for more progress in the areas of inclusion, gender equality and environmental sustainability. exclusion and unequal access to economic and social opportunities continue to inhibit human rights, improved livelihoods and the expansion of skills. environment related challenges â&#x20AC;&#x201C; climate change, natural resource depletion and energy access â&#x20AC;&#x201C; are also hindering sustainable human development. In response, the post-2015 development agenda for Africa targets equitable and

souRCe: oeCd africa economic outlook

socially-inclusive economic growth and structural changes, focusing on empowerment, governance, social transformation and gender equality. Integrating further into value chains can increase human development in Africa. New technology and innovation are critical for ensuring the benefits of greater integration into local, regional and global value chains and managing the associated risks for the poor and marginalised. Developing value chains to raise agricultural productivity can generate jobs and increase social cohesion, particularly for countries recovering from conflict. more efficient value chains should profit small producers, the poor and women. governments, the private sector and co-operatives should protect their rights by promoting resilience, streamlining and competitiveness.

poverty, income, education and health Africa’s poverty rates are declining, according to the Millennium Development goals Report (AUC et al., 2013). the proportion of people living in extreme poverty (on less than USD 1.25 a day) in the regions of Central, east, Southern and West Africa fell from 56.5% in 1990 to 48.5% in 2010. However, due to the slow pace of poverty reduction, the actual number of people living in extreme poverty in those four regions increased from 289.7 million to 413.8 million over the same two decades. one of the Millennium Development goals is to halve the population in extreme poverty by 2015. Some countries have already attained this goal; these include Cameroon, egypt, guinea and tunisia. Countries close to meeting the target are Senegal,

the gambia, ghana, Mali, Mauritania, Niger, South Africa, Swaziland and Uganda. other countries are falling behind; they are Côte d’Ivoire, Kenya, Madagascar, Morocco and Nigeria. there are now 8 African economies with gDP of over US$100 billion, and around 1000 mergers and acquisitions reported each year at a value of US$30 billion in 2013. with these figures in mind, the future for the continent is looking positive and growing at a sustainable rate. Information provided by: oeCd/ AfDB/UNDP (2014), African economic outlook 2014: global Value Chains and Africa’s Industrialisation, oeCd Publishing. http://dx.doi.org/10.1787/aeo-2014-en

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SOLAR

M E D I A

W e s t A f r i c a’ s

solar dawn With low electrification rates, West African countries are beginning to turn to the sun as a source of power Writer Ben Willis, head of editorial, Solar Media

ometime early next year, the West African nation of Ghana will get a glimpse of what a future powered by renewable energy could look like. Blue Energy, a British company, is expected to finish work on its massive 155MW Nzema solar photovoltaics (PV) power plant in Ghana’s Western Region. The project will be the biggest of its kind of Africa and among the largest PV installations anywhere in the world.

Ghana emerging as an early leader in West Africa’s fledgling solar energy scene is perhaps not all that surprising. Long regarded as a model of political stability and relative prosperity in the region, it has all the right ingredients for solar energy to take root: A rapidly growing economy, increasing demand for power and an investment-friendly political climate. Beyond Nzema, the Ghanaian government is looking more broadly at solar and other forms of green

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energy to satisfy the country’s growing appetite for electricity and cut greenhouse gas emissions. Legislation passed in 2011 put in place a target of meeting 10% of the country’s power needs from renewables by 2020. The law was backed up by a so-called feedin tariff; a mechanism that guarantees renewable energy generators a certain price for the power they produce, enabling relatively more expensive technologies such as solar to compete with cheaper fossil fuels.

PV system at the May Williamson Tea plantation, Kenya. © Solarcentury.

“The renewable energy act is meant to create the enabling environment to attract private investment,” says Kwabena OutDanquah, head of renewable energy at Ghana’s Energy Commission. “We are looking at the entire renewable energy sector – be it solar, be it wind, be it any other renewable energy source which is available.” But Ghana is not the only country in West Africa eyeing the opportunities represented by solar energy. With comparatively low levels of electrification, growing demand for power and high levels of irradiance (the theoretical level of solar energy that can be tapped in an area), the region as a whole could benefit hugely

from the exploitation of the sun’s limitless resources. Indeed, under the guidance of the Centre for Renewable Energy and Efficiency (ECREE), an agency of regional political bloc, ECOWAS, individual countries are drawing up plans for how they plan to tap into the sun’s energy. “The potential for solar energy in West Africa is significant,” says Mahama Kappiah, executive director of ECREE. “There are opportunities to adopt small-scale, large-scale, grid and off-grid solar power systems considering the region’s solar resources. In addition, electricity demand is on the increase as income and socio-economic conditions

improve across the region. Solar energy can diversify the current energy mix and help to meet this demand.” When Kappiah highlights West Africa’s abundant potential for solar energy, it’s worth throwing in some figures. Average irradiance in West Africa is 4.5-6 kilowatt hours per day, per metre squared – that’s to say, every metre-squared of ground, if covered in solar panels, could generate up to 6 kilowatt hours of electricity each day. By comparison, average irradiance in the UK, for example, is just 2.9kWh per day per metre squared. Of course, as oil is only of any use if it can be pumped out of the ground, so solar energy is only of any use if it can

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SOLAR

M E D I A

be converted into useable power – and herein lies a multitude of challenges. Interestingly, it is not the technology that is the key barrier to the exploitation of solar power. Massive global competition in recent years has seen PV technology develop at an exponential rate and decrease in cost just as quickly. The cost of developing a solar project in a West African country will be higher than in, say, a European country but this is more a consequence of politics, finance and logistics than a reflection of any fundamental difference in the technologies involved in comparable PV power plants in the two regions. Politics is the most crucial of these elements. Germany, widely regarded as the world leader in solar, made the leaps it has in deploying solar over the past decade because of strong political leadership and the institution of clear, solar-friendly policies. These gave investors the confidence they needed to believe that solar was a technology worth backing, and it’s largely because of the bold lead taken by Germany that solar has gained such a rapid foothold worldwide. Similarly bold measures are now needed in West Africa if solar is to enjoy any success here. “West Africa, as with most of Africa, suffers from generally low foreign investment flows due to the perceived risks associated with doing business,” says Kappiah. “Investors want transparency, longevity, certainty and consistency. The key challenges are that institutional, regulatory, legal and tariff structures and frameworks are largely non-existent or weakly implemented.” Two mechanisms that may help stimulate greater solar energy deployment are the ECOWAS renewable energy policy (EREP) and the ECOWAS energy efficiency policy approved by the region’s energy ministers in October 2012. These policies include minimum targets for renewable energy and energy efficiency and a range of measures, standards and incentives to be implemented at regional and national levels. EREP sets targets for an increased use of renewable energy sources such as solar, wind, small-scale hydro and bioenergy. It aims to increase the share of renewable energy in the region’s overall electricity mix to 10% in 2020 and 19% in 2030. Published alongside EREP is an implementation plan specifying that by the end of 2014, all 15 ECOWAS countries should have developed and

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Construction of the Lesedi solar power plant in South Africa. © SolarReserve.

Aerial view of the completed Lesedi power plant, South Africa. © SolarReserve.

adopted national renewable energy action plans and policies. These will include renewable energy targets based on national potential and socioeconomic assessments, and, importantly, will also set out the concrete laws and incentives each country will need to implement to achieve their targets. ECREEE has been charged with leading this process and with assisting member states in implementing their plans. Measures such as these and the feed-in tariff in Ghana are examples of how governments in West Africa can begin to de-risk the solar offer for foreign investors, Kappiah says. Indeed he believes the tide is beginning to turn on perceptions of Africa as a no-go zone for renewable energy investors. “Foreign companies are becoming increasingly active in the region’s energy sector, given the market potential that abounds,” he says. Evidence of that claim is most obvious in Ghana, where, beyond Blue Energy, the government has received applications for over 2GW of solar projects. Elsewhere, Nigeria is beginning to show signs of becoming a target for investors, and projects are beginning to pop up in a number of other countries – Senegal, Cape Verde, Cote d’Ivoire and Sierra Leone, to name just a few. The biggest barrier against solar taking off in West Africa, as in the rest of the continent, remains its cost. But Kappiah says that with the price trajectories of solar and conventional fuels now heading in opposite directions, there is every possibility of solar becoming a key part of the region’s energy mix. “The market trend indicates a price decrease for renewable energy technologies on the one hand and a price increase for fossil fuel costs on the other hand,” he says. “Price reduction for solar technologies is foreseen within the next 20 years. Solar energy therefore has the potential to constitute a key component in the region’s overall energy mix and we expect to see significant growth in the coming years.” And it’s not just in solar deployment that West Africa appears to be coming on to the world radar now. In recent months, a number of companies have revealed plans to set up manufacturing bases in West African countries, including Cote d’Ivoire, Ghana and Nigeria. Having a locally based supply chain will serve as huge boost to the ambitions of these and other countries in the region to exploit the sun’s limitless energy.

Solar in West Africa will be under the spotlight at a two-day event in Accra, Ghana on 16-17 September 2014, hosted by Solar Media, publisher of the leading industry website pv-tech.org. Featuring a high-profile panel of speakers drawn from industry and government, Solar & Off-Grid Renewables West Africa promises to offer invaluable insights into both the opportunities and challenges for solar and other renewables in the region. Confirmed speakers so far include Wisdom Ahiataku-Togobo, director of renewable energy at Ghana’s Ministry of Energy, Louis Seck, Senegal’s former minister for renewable energies, and Ifeabunike Joseph Dioha, director of renewable energy at the Energy Commission of Nigeria. Further information on the event is available at http://westafrica.solarenergyevents.com/

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investment profiLe 22

p R O f I L E

Angola Africa outlook takes a closer look at Angolaâ&#x20AC;&#x2122;s business and investment potential SOURCE: www.anip-angola-us.org Writer Emily Jarvis

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construction and infrastructure

there is an urgent need for construction and rehabilitation of roads, houses, schools and industry. Shortage of housing is a chronic problem that has led to widespread slum development particularly in and around the capital, Luanda, a city built to sustain a population of 700,000 and now home to around 4 million people. With very little in the way of domestic material production, construction companies in Angola currently have to import most of their own materials and equipment. Several Portuguese companies are well established in Angola’s construction sector including Soares da Costa, Teixeira Duarte and Mota/Engil. these companies have the greatest share of market construction contracts. In terms of infrastructure, there is currently very little in place and this is accompanied by outdated working practices and obsolete equipment.

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souRCe: www.anip-angola-us.org

s one of Africa’s major oil producers, Angola’s economy has undergone a period of transformation in recent years, moving from the disarray caused by a quarter century of civil war to being the fastest growing economy in Africa and one of the fastest in the world, with an average gDP growth of 20 percent between 2005 and 2007. In the period 2001-2010, Angola had the world’s highest annual average gDP growth, at 11.1 percent. In 2004, China’s eximbank approved a $2 billion line of credit to Angola. the loan is being used to rebuild Angola’s infrastructure, and has also limited the influence of the International Monetary Fund in the country. Africa outlook takes a closer look at the key sectors for investment in a country keen to tackle the various infrastructure and economic factors impacting the area.

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Nevertheless, there have been improvements to the Luanda railway and development is ongoing and encouraged in various other sectors.

Oil & Gas and Mining

Angola is one of the major oil producers in Africa. It is the most significant producer in Sub-Saharan Africa with 2 million barrels per day. Additionally, Angola has numerous mineral deposits, including diamonds, iron, gold, phosphates, manganese, copper, lead, zinc, tin, wolfram, tungsten/ vanadium, titanium, chrome, beryllium, kaolin, quartz, gypsum, marble, granite and uranium. The full extent of these resources has yet to be fully evaluated. Since independence, mining activity has been limited to diamonds and, on a smaller scale, to the extraction of marble and granite. The supply industry for mining activity is thus not well developed and, as with many other activities,

companies that are choosing to begin operations in Angola are sourcing their equipment from South Africa.

Telecommunications

There are signiﬁcant development opportunities in the telecoms sector in Angola. In 2008, the number of cell and landline phones reached 6.5 million, almost 6 times the number back in 2005. There are currently two mobile phone networks: Unitel and Movicel, the latter being a former subsidiary of Angola Telecom until its controlling stake was sold. As mobile Internet grows in Angola it is likely that more people will be making use of these phones and their applications for business and commercial functions. Satellite phones are a good alternative to local cell options as they are likely to provide better coverage in remote areas, although there are still limitations. The Iridium system of phones has coverage all over Angola, making it the best option. Their

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competitor, Thuraya , provides service in the majority of the country, except in the south where coverage can be unreliable and sometimes unavailable.

Power

The Angolan government have been focussing on a development plan for electricity generation in recent years, with an aim to “guarantee an increase in the production, transmission and distribution of energy, in order to address the needs of the Angolan people and demands arising out the country’s national reconstruction and economic and social development process, and to do so with quality.” Several projects exist for the installation of small and micro hydroelectric power plants needed for the electrification of rural zones that, owing to their location, present difficulties in relation to their connection to medium or high voltage grids. Sources of funding have yet to be defined for those projects. However, some 50 preliminary surveys have

Water

Angola is the second most endowed country in Africa in terms of water resources with intense rainfall in almost all of the country. 60% of Angola records an average annual rain of about 1000 mm. In the north rainfall reaches levels of over 1,800 mm per year. Despite that, the great majority of the population do not have access to piped or treated water. Equally, there are limited sewage treatment facilities. In urban areas, estimates indicate that 50 % of the population has access to potable water, but only 16 % have piped water. The remainder relies on water standpipes or trucks. In rural areas, no more than 15% of the population have access to drinkable water.

Agriculture and Livestock In Angola, agriculture is the country’s second most productive sector, coming immediately after oil and gas. Its importance is indisputable, not only because of its economic potential and opportunities, but also because a significant swathe of the population (about 60-70%) depends on it, since the sector ensures work and food for most of the Angolan population. Since 2002, when the government started to focus on relaunching the agricultural sector, it has been intensified and structured in a progressive and effective manner. At the same time, the sector consolidates a

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SOURCE: www.anip-angola-us.org

already been completed on them, and the government plans to hand them over to private operators, by means of public tenders, for construction and operation based on the BOT system. The area of renewable energies is one that the sector is heavily bent on developing. The implementation of electriﬁcation projects, both rural as well as urban, with the use of renewable energies based on solar, wind, biomass or other sources has merited particular attention from the energy sector.

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strategic vision for development, which positions it as the engine for achieving the countryâ&#x20AC;&#x2122;s evenly balanced and sustainable development. the FAo (Food and Agriculture organisation of the United Nations) estimates over three million hectares of arable land exist in Angola. there are also large areas for pasture, especially in the southern part of the country. With the idea of launching an agri-business policy, as part of the governmentâ&#x20AC;&#x2122;s social and economic programme back in 2000, it was decided that the main effort should focus on those zones defined in the agricultural programme, and on the production of the following basic staples: Cereals, roots and tubercles, beans, fruits, vegetables, oil seeds, and specialty products such as green products, small ruminants, cattle breeding and meat processing, pig farming and the rearing of poultry and other birds. the present situation provides a major momentum, which must be urgently put to good use, since the groundwork has already been laid

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Angola possesses natural potential for achieving levels of production capable of contributing to the harmonious development of its populationâ&#x20AC;?

favouring private investment and the emergence of development dynamics. this also enables state intervention, when it comes to defining development policies and strategies, favouring the impact of the activities/actions of public institutions in various sectors, but mainly in those addressing the fight against poverty and hunger, and the development of rural communities.

forestry production

Log production for the year 2006 is estimated at 59,872m3, translating into an increase of 1.3% in relation to the previous year. Reforestation has led to the planting of 759 hectares. Beekeeping and its popularisation is also actively encouraged. In spite of some positive indications of growth shown by the sector with regard to several investments in the field of semi-processing, mostly in the province of Cabinda, levels of logging continue to be conditioned by adverse factors. these can be summarised as the decapitalisation of forestry companies, lack of felling/cutting,

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transport and processing equipment and the poor state of roads.

fisheries

Angola possesses natural potential for achieving levels of production capable of contributing to the harmonious development of its population. Favourable factors for the economic and social development of the country include: Soils that are highly suitable for agriculture, biodiversity, climate and genetics; an abundance of water resources and natural biological and aquatic resources; and a significant proportion of the rural population whose main activities are directly related to agriculture production, livestock raising and fishing. At the same time, the Millennium Development Goals for global food production together with the competitive advantages of the agricultural sector in both domestic and overseas markets will provide opportunities for the sector to grow strongly.

With a rich and varied fauna with a system of parks and natural reservations, the country has mountainous landscapes and waterfalls littered throughout the national game parks and natural reservesâ&#x20AC;?

the significant potential of the sector will become more evident when the results of strategies currently under way become visible, as these will remove a number of vulnerabilities, including: training of technicians, farmers, livestock breeders, boat owners and fishermen, as well as the renovation and new-building of infrastructures. this will make the sector more competitive and more capable of responding.

tourism

Angola is potentially a country ripe for the development of the tourism sector, offering 1,650 km of coastline, a long summer season and beautiful, natural sandy-beaches with excellent conditions for swimming and water sports. With a rich and varied fauna with a system of parks and natural reservations, the country has mountainous landscapes and waterfalls littered throughout the national game parks and natural reserves, which serve as hubs of attraction for investment.

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L e a d i n g C o m p a n i e s frica outlook is a leading business to business publication that promotes and showcases the leading companies on the Continent. The digital and print publications are aimed at boardroom and hands on decision-makers in a wide range of industries, reaching over 135,000 business executives every month. With over 11,000 unique visitors to our website on a weekly basis africa outlook is the platform to promote your business success. each month we feature leading companies and business executives by profiling their operations in their own words. Covering all aspects from supply chain, investments and developments, best practice, innovation, growth plans and future project and products we aim to promote all that is good about industry, economy and business. producing business profiles across all sectors and regions of africa we give companies the opportunity to tell their story to our readers.

Emily Jarvis Sub-Editor

w w w . a f r i c a o u t l o o k m a g . c o m

If you want to enjoy the exposure and coverage we can offer please feel free to contact me and we can discuss the opportunity at length. Tell us your story and weâ&#x20AC;&#x2122;ll tell the world.

emily.jarvis@outlookpublishing.com

B r i t i s h A m e r i c a n T o ba c c o N i g e r i a

NIGERIA’S

LEADERS IN TO B A CCO

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BAT Nigeria are well on their way to sustaining the lead in product innovation and quality initiatives in tobacco products, whilst retaining brand loyalty Writer Emily Jarvis Project Manager Callum Philp

ritish American Tobacco (BAT Nigeria) Limited is a fully owned subsidiary of the British American Tobacco Group. The company has had an operational presence in Nigeria since 1912. At this time as a Group, they held a 60% shareholding value in the Nigerian Tobacco Company (NTC) while a 40% shareholding value was held by the Nigerian government. By 1978, there were three operating factories located at Ibadan, Port-Harcourt and Zaria. British American Tobacco is a global tobacco group with brands sold in more than 200 markets; few companies founded in 1902 are still going from strength to strength. Fewer still are leaders in more than 60 markets, and with one billion adult smokers around the world, BAT manufacture the cigarettes chosen by one in eight of them. â&#x20AC;&#x153;We take our business and our impact very seriously. We know the tobacco

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B ri t is h A merican Tobacco N i g eria

MRS Oil Nigeria Plc

RS is one of the largest and most efficient downstream players with solid roots in Nigeria and leading positions in fuels and lubricants market in Cameroon, Benin, Togo and Cote d’Ivoire. MRS is an African conglomerate that focuses on diverse key activities in oil trading, shipping, storage, distribution and retailing. The company is fast becoming a prominent energy group in subSaharan Africa with a focus on continuous expansion and growth of businesses in Africa and beyond, while supporting customers such as British American Tobacco (BAT) with whom we have been in partnership for over two decades . Our short and long term goals are to continue to expand and grow our businesses in Africa and beyond by:

industry is a controversial one, and so it’s all the more important that we act responsibly, from the crop right through to the consumer.” The domestic industry in Nigeria experienced a decline when an influx of illicit trade and the deteriorating infrastructure created an uncertain business environment and investment slowed. This led to closures of Port Harcourt and Ibadan factories and a downscaling of the Zaria operations. The election of the 1999 civilian administration brought a renewed focus on Foreign Direct Investment (FDI) which led to the incorporation of British American Tobacco (Nigeria) Limited in July of the year 2000. Subsequently, the company merged with the Nigerian Tobacco Company in November of the same year. The company is now a fully owned subsidiary of the British American Tobacco Group. On September 24th 2001, the Group signed a Memorandum of Understanding

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Growing our retail network through win-win partnerships Supporting our customer base with appropriate customer friendly technological offerings that will improve their value for money equation.

We know the tobacco industry is a controversial one, and so it’s all the more important that we act responsibly, from the crop right through to the consumer”

Supporting our industrial customers with customer value propositions that will reduce their operating costs and increase their efficiency. Ensuring our environmental and social responsibility commitments. Supporting the economy through research and employment generation. At MRS, we strongly believe in Team work, Excellence, Service & Trust

To discuss how we can help you, please contact us at: Tel 01-461-4678/ +234 803-403-0594 Email pcaxton-martins@mrsholdings.com

www.mrsoilnigeriaplc.com

BRItISh AMERICAN tOBACCO NIgERIA

eMporiuM coMMunicAtions liMiteD

mporium Communications Limited is a through-the-line marketing communication solutions firm whose business is driven on two major platforms (the private sector and public sector) with differentiated offerings in terms of strategic approach and solutions. We have partnered with British America tobacco Nigeria providing consumer engagement/reward activities, trade/PoS schemes and market expansion initiatives for over six years. emporium Communications limited provides branding, sponsorships, channel development and experiential marketing services to FmCgs, financial services organizations and telcos across the African continent. We are committed to providing high quality services in a creative, painstakingly diligent, efficient, timely and cost-effective manner every time.

tel +234 1 290 5546 email info@emporiumng.com

www.emporiumng.com (MoU) with the Federal government of Nigeria for an investment of $150 million to build a state-of-the-artfactory in Ibadan, oyo State. the investment started a process that has impacted all aspects of the tobacco industry, from leaf growing, through to the manufacture and distribution of tobacco products.

commitment to nigerian Development Under the terms of the MoU, British American tobacco Nigeria made a commitment to work with the Nigerian government in the following areas: Regularising the tobacco sector Building potential for regional exports significantly increasing both the quality and quantity of tobacco grown establishing an independent foundation to address rural socio economic development

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eliZADe

We take pride in the responsible way that our businesses are run. And the recognition and awards we’ve received over the decades show it’s not just us who think we’re doing the right thing”

lIZade is the brainchild of Chief Michael Ade. ojo and his late wife, Mrs. Wuraola Ade ojo. over the years, we have consistently been marketing, selling and servicing toyota vehicles in Nigeria. And today, we are clearly ranked as the no 1 toyota dealer in Nigeria. our superior performance in sales and service delivery as a result of our years of experience has given us a strong corporate image, which has served as a guarantee of value to our present customers. the company has established a relationship of trust and confidence with its loyal customers. Whatever model you buy, you can be sure elizade will always be there to help you achieve pleasant motoring experience all the time. tel 01-7743176, 7349720 email enquiries@elizade.net

www.elizade.net

M A N U f A C t U R I N g

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BRItISh AMERICAN tOBACCO NIgERIA

ABelinis liMiteD aBelInIs lImIted is a project management company with special interest in events, activations and production, operating in the integrated marketing communication sphere. our services span event marketing and management, trade marketing support and electronic media content development. the company was incorporated on the 13th day of September 2007 but only started full operations in January 2011. We proffer and implement cutting edge strategies, capable of profitably achieving our client’s marketing needs to time without compromising on quality and best practice. tel +234 8033262264 email abiodun@abelinisng.com

www.abelinisng.com on June 17th 2003, British American tobacco Nigeria completed and commissioned its state-of-theart factory in Ibadan. the factory is staffed by first class nigerian engineers and technicians, and research shows that products manufactured in the factory are of the highest international quality. this resulted in the certification of the factory to NIS ISo 9001:2000 by the Standard organisation of Nigeria on May 18th, 2005 with a further recertification in February 2009.

Acting responsibly, Both globally and locally Bat were the first tobacco company to be included in the Dow Jones Sustainability Index in 2002 – and we’ve been included every year since. “We take pride in the responsible way that our businesses are run. And the recognition and awards we’ve received over the decades show it’s

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We are a part of many local communities – both large and small – around the world, and in many countries we are the top employer and the company of choice for people employed at every stage of our supply chain”

not just us who think we’re doing the right thing.” In 2002, British American tobacco Nigeria took a decision to localise the manufacture of Nigerian brands with a subsequent improvement in product quality and freshness. International brands which were previously imported - such as Benson and Hedges, St. Moritz, Rothmans, Consulate, London, Pall Mall and Royal Standard - are now produced in Nigeria. With a business that operates at a local, as well as global, level, BAt provide agronomy support through their extension services to over 100,000 smallholder farmers around the world. “We are a part of many local communities – both large and small – around the world, and in many countries we are the top employer and the company of choice for people employed at every stage of our supply chain.”

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In 2013, BAT Group sold 676 billion cigarettes, made in 46 factories in 41 countries. The company employ more than 57,000 people in more than 200 markets worldwide, with many more indirectly employed through their supply chain. On a global scale, the company contributed more than £33 billion in duty, excise and taxes to governments worldwide in 2013.

“Our people are part of our history” BAT are proud to state that their staff are an essential part of not only the present company developments, but its future as well. “We attract and retain experienced managers and graduate trainees who look forward to a challenging and rewarding career. The company’s employment policies include a commitment to equal opportunity, which eschews any form of discrimination, ethnic or religious bias.”

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BRItISh AMERICAN tOBACCO NIgERIA

core VaLues V BAT’s core values were developed following discussions with hundreds of employees from around the world and from all levels of the organisation. They describe the shared beliefs that we feel make British American Tobacco a great company to work for: ConsumeR led: The most successful tobacco company will be decided by the consumer. To win, we must win the consumer. We are consumer led. natIonal BattleFIelds: Our ‘battlefields’ are national. This is where our consumers, trade partners, stakeholders and people are. This is where we sell cigarettes, generate cash and develop talent. This is where our brands live or die. This is British American Tobacco. gloBally alIgned: We are a global business with a global vision. We have global strategies and hard-won global scale. We must use and leverage these in order to win against global competition. To do so, requires global cohesion and discipline. A matrix organisation is the best means to ensure this. We recognise that there is a ‘tension’ in a matrix organisation. This is as it should be: business needs different viewpoints to build conviction and purpose. dIveRse teams: We believe in the value of teams and diversity within those teams. We cherish individuality in the pursuit of the team goal. We believe individual creativity and contribution can and must flourish for us to succeed. good leadeRs: People remember their leaders. The ones who had time for them, listened to them, coached them, developed them, trusted them. The leaders who helped make them the success that they are. We like good leaders. They tend to be very successful themselves. Our leaders bring our beliefs to life. We must all be leaders. Fun and welComIng: We like working with our colleagues and we trust them to deliver. They’re smart, keen to make a good contribution and fun to be with. They are what makes British American Tobacco so special. We are a welcoming and hospitable organisation. We want people to enjoy their experience with us. People feel at home here. FIt to FIgHt: Our competitors are powerful and determined. We value our organisational intimacy and family-feel, yet recognise we must be no less determined or demanding of ourselves. To head the industry will take more than thoughtleadership and scale, we must be fit for the fight ahead, we must be quick and agile. We must each take ownership for our actions. ConsCIously ResPonsIBle: We act responsibly and transparently. Not because we have to, but because we want to. We take comfort and pride in knowing that we will do the right thing and behave in the right way. We accept the costs this will incur.

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Employees at BAT Nigeria are exposed to a whole range of international assignments which act as critical developmental channels. This is aimed at ensuring the managers are able to gain exposure, share and implement global best practice in their respective locations.

Looking to the Future

British American Tobacco Nigeria aims to be “the foremost positive socioeconomic contributor to the Nigerian economy” and the company goal is to “sustain leadership of the Nigerian tobacco industry”. In their drive to achieve this aim in Nigeria, the company acknowledge that the support, encouragement and partnership of the government and its agencies as a crucial element to success. “We are continually seeking for dialogue opportunities with the government to actualise this. As we continue to demonstrate

We are keen to prove that a tobacco company can be socially responsible and in so doing set high standards of good corporate citizenship”

commitment to best practice in all our operations in Nigeria, we are keen to prove that a tobacco company can be socially responsible and in so doing set high standards of good corporate citizenship.” British American Tobacco Nigeria is committed to delivering superior quality products and meeting the desires of consumers. “Our brands are amongst our most important assets. This is why we take care to position them intelligently to adult consumers who have chosen to smoke. To meet this requirement we have a strong broad-based portfolio of international and local brands.” With a marketing strategy built on understanding customers and delivering the most relevant brands to meet differing preferences, BAT Nigeria are well on their way to sustaining the lead in product innovation and quality initiatives in tobacco products, whilst retaining brand loyalty.

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Waterboys

the

davis and shirtliff offer a comprehensive and competitive product range with regional availability and unrivalled technical and service support Writer Matt Bone Project Manager Donovan Smith

or nearly 70 years, davis and shirtliff have been distributing and installing pumps and other water related equipment throughout the east African region. Based in Nairobi, the group has nearly 500 staff and offers a wide range of quality products in five separate but interlinked segments: Water pumps, swimming pool equipment, water treatment, solar equipment and power products. alec davis, Ceo of davis and shirtliff, claims that the company is the regionâ&#x20AC;&#x2122;s dominant player and that it has been so for a number of years. there is a very wide selection of products within the various product segments and

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We stand out as a company in two key areas: Product availability and product supportâ&#x20AC;?

Control Panel Assembly Area

Largest Dayliff Reverse Omosis Plants

the company is proud of its record of product innovation: “We stand out as a company in two key areas: Product availability and product support: We have 38 branches spread throughout seven countries in the region from which customers can easily access any of the range of products we have available. It is this widespread availability that really sets us apart from our competitors,” says Davis.

investing in infrastructure An important aspect of Davis and shirtliff’s success is its continuous investment in facilities and infrastructure. already this year five new branches have been opened and more are planned. It is not

With the occupation of the new warehouse we can now expand our stock and logistical capabilities”

Children Enjoying Water from a Davis & Shirtliff Pump

just the branch network that has been expanded; a new logistical and stock warehouse has been bought to support the regional growth. “With the occupation of the new warehouse we can now expand our stock and logistical capabilities. By being able to hold more stock, we can improve service to our customers. We are always looking for ways to strengthen the business through carefully executed investment,” explains Davis. the company has also invested in its own fleet of trucks for regional deliveries, which has greatly improved service as intra-country logistic infrastructure is expensive and unreliable.

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OPti-SOlAr CEO Alec Davis

PtI-SoLAR is renowned for solar off-grid and hybrid systems. We manufacture InveRteRs, ChaRge ContRolleRs, and solaR-Panels for different applications such as backing up power at offices, schools, clinics, AtM, telecom and solar street lights. opti has been in Power backup business since 1991 with manufacturing of uninterruptible power supplies and Automatic voltage regulators [upto 5MW] under brand of oPtI-UPS originated in USA. We launched opti products in Africa over a decade ago, now we have 25 active partners within African continent. A major milestone for opti was to enter distribution partnership with Davis & Shirtliff Africa in 2009. their long term vision, professional team and well developed infrastructure made it possible for opti-solar products available at 50 locations in five countries across east africa. we are witnessing tremendous growth year on year.

partnering to progress Davis is keen to press the importance of having strong relationships with partners, some of whom have been working with davis and shirtliff for over 50 years: “When you have a partnership, the first thing you make sure is that both parties always understand one-another and that transparency is maintained at all times. We have been fortunate to have partnered with excellent companies over the years, notably Grundfos and Pedrollo, both of whom are global pump manufacturers and more recently Lorenz; a world leader in solar pumping and Opti; a taiwanese electronics manufacturer of inverters as well as Champion; a battery manufacturer. together these products have contributed to Davis & shirtliff being a leader in power backup systems,” says Davis. a key davis and shirtliff strategy has been to establish its own brand

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When you have a partnership, the first thing you make sure is that both parties always understand one-another and that transparency is maintained at all times”

each year engineers from africa travel to opti head-quarter for hands-on training. We take pride in developing local technical skills to design and deliver most efficient opti solar systems. opti R&D constantly improves on product and been able to customize fit for African terrain. opti Superior quality, good technical support and lower cost make opti preferred choice for clients. tel +886-2-2246-7272 / +886-914010066 email rehan@opti-solar.com / sales1@opti-ups.com.tw www.opti-solar.com www.opti-ups.com

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lorentZ

oRentZ is the global market leader in solar powered water pumping solutions.

Founded in germany during 1993 loRentZ has pioneered, innovated and excelled in the engineering and manufacturing of solar powered water pumping. today loRentZ is active in over 120 countries through a dedicated network of professional partners. loRentZ technology uses the power of the sun to pump water, sustaining and enhancing the life of millions of people, their livestock and crops. simply - sun. Water. life. loRentZ has been providing solar water pumping systems to Africa for 15 years.

D&S Livery Fleet

Dayliff plants are carefully engineered to provide reliability with the highest treated water quality”

– Dayliff. Products are sourced from quality Far eastern manufacturers and they are now a growing force in the region. the main product area is a wide pump range, though the company also assembles many products in Kenya including a range of Reverse osmosis and Ultra Filtration plants. “these use proven technology to purify water. At the heart of both systems is the membrane sourced from international supplier Dow, though the effectiveness of treatment relies on the correct matching of all components to provide an efficient treatment process. Dayliff plants are carefully engineered to provide reliability with the highest treated water quality,” explains Davis.

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Pumping water using solar power is a logical choice for Africa as it provides a reliable, cost effective and sustainable solution. Water can be pumped without grid connection or where a power supply is not reliable. Where solar replaces diesel, the return on investment is typically less than 18 months. Water is stored in elevated tanks to ensure that the requirements are met 24 hours per day without the need for expensive batteries. the loRentZ systems are designed, manufactured, tested and proven to work in the most hostile conditions with no servicing and a very long life. loRentZ solar water pumping systems are used for applications from the smallest single family requirement to large scale irrigation and industrial applications. “In 2012 loRentZ was very pleased to add davis and shirtliff to our african partner network. davis and shirtliff are clear market leaders in east africa, a respected household name and have a professional approach to business; we see our partnership as a perfect fit” – stephan grinzinger – global head of Sales. Kroegerskoppel 7 2458 henstedt-Ulzburg germany

www.lorentz.de

Meet all your water pumping needs

with solar power!

Irrigation Solutions

Drinking Water

Using our solar powered pumps for irrigation:

LORENTZ pumps serve people and livestock:

Saves you money â&#x20AC;&#x201C; fast ROI Provides energy security Is clean and safe

Water in any location Proven long life No running costs

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Up to 500 m3 per hour and 450 m lift

The most efficient pumps available

Over 150 models to meet every need

Proud to have been working with our partners in Africa for 15 years.

www.lorentz.de/africa

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sAWo inc

AWo Inc, a Finnish sauna company, established in 1994, is one of the biggest sauna room and sauna heater manufacturers in the world. Iso-certified in quality and environmental management, SAWo is a responsible employer and community member. Committed to genuine and original sauna design and environmentally friendly operations, SAWo aims to have ethically correct products to offer the consumer. With an innovative and adaptive business concept, SAWo opened itâ&#x20AC;&#x2122;s headquarter in the Philippines with 300 employees together with a Finnish management team and sauna experts. In keeping with international corporate culture and ethical work environment, SAWo conducts regular management audits. the successes of SAWo lead to the expanding of their operations in Finland and further in the Philippines. equality within human resources is the core value of SAWo therefore the best is offered to all employees. employees get free dining, continuous presence of company nurses and having a doctor reception weekly at SAWo premises. everybody is treated with respect and equality. sawo offers high quality saunas, sauna heaters, sauna accessories and steam controls, specialized in steam generators and modular steam rooms. Sauna room wood materials are imported from europe and Canada, assuring the high quality and genuine sauna experience.

tel +63-(0)32-341 2233 email info@sawo.com

www.sawo.com

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growth Based challenges

With a rapidly developing and emerging middle class, solar power and water equipment have become strong growth areas for the company”

with the east african region widely considered to be the hot economic growth area right now, Davis has seen a significant rise in the number of competitors and companies looking to participate in the growing local economies. With a rapidly developing and emerging middle class, solar power and water equipment have become strong growth areas for the company, although Davis is quick to point out that the growth is not just linked to the demographic change. “the emerging middle class has certainly had an impact on our business. However, there is also considerable infrastructure investment as well as growth of the traditional economic sectors and as the established market leader with a strong brand we are well placed to benefit from these developments,” Davis adds. to capitalise on this growth an important recent development has

United Nations (UN) Water Treatment Truck

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MiDAs MIDAS distinguishes itself through resource-saving and cost-optimizing products for individual customer requirements. the continuous improvement and extension of the already existing product range, as well as the creation and production of innovations, serve to simplify and facilitate every process in the swimming pool area. In addition, MIDAS invests in the development of complete and application-oriented solutions. the key to success lies in MIDAS’ abundance of experience, absolute reliability and especially in its adaptable creativity and the ability to constantly develop new and revolutionary products. tel +49 6659-91 54 70 email info@midas-gmbh.de

www.midas-gmbh.de

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When ideas create the comfortable solutions. The new fully automatic valve MIDA.mat.

Backwash: controlled by time and pressure

Filter control up to 2 times a day

Digital display Circulation: Countdown up to 3 days

Pressure control via sensor (precision 0,1 bar)

Battery operation in case of power cut Memory card of errors

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Staff Attending a Team Building Session

been an upgrade of the company’s Nairobi manufacturing facilities. As well as water treatment plants it also manufactures pressure sets, solar water heaters, pool and water treatment filters and, a recent initiative, electrical control panels for pumps and the other equipment it supplies. this expansion and upgrading of the manufacturing and assembly facilities provides a timely boost to the company’s capacity and will shorten lead times whilst increasing capacity and improving quality. the specialised facility is unique in the region and will considerably boost the company’s technical capacity.

A successful future davis and shirtliff is constantly looking at new and innovative ways to secure its future and davis is confident that its new product innovations will enable the company to continue growing. Success is not just down to products, though, but

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We pride ourselves on supporting people and businesses who have bought our products in any way we can”

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We will always endeavour to help our clients get the best from our products”

A Dayliff Reverse Osmosis Plant being assembled

also for Davis it is about combining those products with support that is second to none: “We pride ourselves on supporting people and businesses who have bought our products in any way we can. Whether it is through specialised product information, selection advice, installation or after sales service. We will always endeavour to help our clients get the best from our products,” reasons Davis. Davis feels that there are many reasons why the company has been successful over such a long period, though the quality and dedication of its staff is the main factor. there is a careful recruitment process to ensure the highest calibre candidates who are then extensively trained and they quickly absorb the culture of quality and standards. It is this integrity in both product quality and staff knowledge that has enabled davis and shirtliff to become the market leaders and dominant player in the water and solar sectors in Kenya.

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Technology at your

Fingertips Airtel Malawi has the brand strength and customer awareness to ensure that their services and products will always be available at competitive prices Writer Matt Bone Project Manager Donovan Smith

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ith a name synonymous with high quality, affordability and solid customer retention, Airtel has shown that no matter what the economic situation of a county, they have the brand strength and customer awareness to ensure that their services and products will always be available at competitive prices. Heiko Schlittke, Managing Director of Airtel Malawi, is aware that although the country is facing challenges, Malawi can benefit from having a stronger mobile and data connectivity infrastructure: “Malawi has a willingness and a need for high quality broadband and mobile data services, to help bring businesses in the country in line with neighbouring companies in Zambia, Zimbabwe and Mozambique. Not only will this help local businesses to grow quicker, but it will provide potential foreign investment to look at the country in more detail.”

Investing in Malawi

In order to implement the much needed mobile data infrastructure plans, Airtel Malawi has invested heavily over the last 18 months in the core areas including 3G+; by increasing the network coverage area and the addition of more towers capable of handling the new data speeds, to see the total number rise to well over 200. However, it is not just investment in the infrastructure that has been a priority for Airtel, but also ensuring that rural areas are treated as equally as the city centres. “As most of the country’s population do not live in the city centres, but in rural locations, it is imperative for us to ensure that

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Debro Construction Debro Construction is registered with the National Construction Industry Council of Malawi (NCIC) as a building & civil engineering contractor in the MK200 million category. Debro Construction has also put forward their latest asset holding for the NCIC to elevate the company to the unlimited category due to the growth of the company assets and large scale projects that the company now handles, we are being considered for the MK500 million category.

they have the same access to our data services and mobile networks. This is our overriding goal, to cover every inhabited area in Malawi over the next couple of years,” cites Schlittke. Affordability of products and services is something that Schlittke is very keen to maintain. With the prices of entry-level Smartphones dropping all the time and becoming much more affordable, Airtel Malawi have taken steps to making sure their handsets are reasonably priced whilst still offering the same quality and packages that the company have to offer. “I am very keen to ensure that our products on offer can be afforded by the customers in Malawi. After all, what is the point having great products and services if your customer cannot afford them? There is very little spare money in people’s budgets, so we aim to ensure that we offer something for every budget. That is our promise to the customer,” remarks Schlittke.

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Debro Construction operates from Area 4 on about 10,000 sq/ meters of land, which comprises of warehouse stores and assorted office blocks within the compound. Timberland is also in house and situated on the premises.

Malawi has a willingness and a need for high quality broadband and mobile data services, to help bring businesses in the country in line with neighbouring companies in Zambia, Zimbabwe and Mozambique”

We enjoy a variety of credit facilities with all the major hardware & building materials suppliers in Lilongwe and Blantyre. Debro Construction has a variety of plant & machinery at its disposal for contracts including 6 concrete mixers, assorted wood working and manufacturing machinery and Block making machinery for Hollow blocks and interlocking. Area 4 off Paul Kagame Road situated behind Sacranie House P O Box 40092 Lilongwe Malawi Tel +265 1759 789 Office Email tland@malawi.net | debro@live.co.uk

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Heiko Schlittke, Managing Director

huAWei

uawei has built up corporation with Malawi Airtel since 2009 and help Airtel to provide the best mobile telecommunication service in Malawi. the main proposed telecommunication solutions are UMtS solution, Hybrid microwave solution, Hybrid site power solution (Solar), optical access network solution, Datacom solution and Metro network solution. Huawei provide 7*24 hours network SLA service, on-site support service, end to end project service, professional warranty service within the product lifecycle. Huawei is a strategy solution partner to Malawi Airtel for the next 5 years. huawei southern-east africa: Annette Mutuku (Kenya) email annette.mutuku@huawei.com tel +254 20-2730168 huawei hq maggie qi email media.affairs@huawei.com tel +86 755 89241622

www.huawei.com/en

Digital Money Airtel Money is the convenient and secure way to transfer money from person to person, or pay for goods by using your mobile phone. this is a huge advantage to consumers who are working long hours and do not have time to get to the bank during the day or those who live in secluded areas of the country, or do not have a bank account or visa capabilities. It has become one of the leading financial tools in africa and airtel Malawi has been capitalising on this success across Africa as Schlittke reasons: â&#x20AC;&#x153;Airtel Money is the next stage in financial transactions for our customers. this can range from transferring money to each other or paying for utilities and other services, such as airtime or data packages. we have identified the need for our customers to be able to access money on the go, or in the case of our rural customers, accessing any form of

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ces

Airtel Money is the next stage in financial transactions for our customers. This can range from transferring money to each other or paying for utilities and other services, such as airtime or data packagesâ&#x20AC;?

onsumer electronic services (Ces) opened its doors in 1996 in the heartland of Blantyre. It is a market leader specialising in the merchandise of branded household electronic consumer goods such as televisions, refrigerators, cookers, camcorders, scientific calculators, watches, etc. At the inception of mobile phones, Ces has been the major distributor of cellular telephones as its core business and an authorised distributor of Nokia in this part of Africa. Beginning with Celtel and now airtel, Ces has forged a strong and long standing link. Ces endeavours to manage its businesses proficiently and discretely through its core values of integrity, technical excellence, dedication to, and ensuring the satisfaction of the unique needs of its diverse clientele.

tel +265 (0) 1 822624 email ces-llw@hotmail.com

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Zte corporAtion

te Corporation is a globallyleading provider of telecommunications equipment and network solutions. With operations in 160 countries, the company is a leader in technology innovation, delivering superior products and business solutions to clients all over the world. Founded in 1985, Zte is listed on both the hong kong and shenzhen stock exchanges and is China’s largest listed telecoms equipment company. Plot No.CC801/307 Next to Mudi Dam Mudi site,Limbe Republic of Malawi P.o.Box 32758 Chichiri,Blantyre 3 Malawi tel 00265-8-151908

www.en.zte.com.cn

banking facility, and turned this into the heart of Airtel Money.” over the next 18 months, Airtel Malawi will continue to drive Airtel Money forward with their goal of becoming the most secure and widely accepted institution for of money transfers and purchasing in the country. It is hoped that by offering this new service to customers, Airtel will be able to further penetrate the market.

Market usage

Currently, Airtel Malawi has just a 27% penetration rate in the country. to put this in perspective, other countries of similar sizes have a penetration of 50%. there are several key factors attributing to the penetration rate in the Malawi market, including economic viability, disposable income in households and a relatively low uptake of technology among the older generation.

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Once the foundations are laid for faster and more reliable data services, customers will begin to see just how beneficial this technology can be to their lives”

schlittke is confident that the market will grow: “I think that the Malawi market will grow, but not overnight. once the foundations are laid for faster and more reliable data services, customers will begin to see just how beneficial this technology can be to their lives.” the market for data is still relatively new and the market for voice and text services is still the main pull for customers. this is changing as perspectives towards social media and the internet change, and when the change does come, Airtel Malawi will already be set up and waiting to help customers join the technological generation.

from store to customer

Airtel Malawi is a company that prides itself on being able to deliver exactly what the customer needs at locations that are easily accessible. Airtel have central hubs in busy

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city locations that offer a myriad of services including handsets, topups, mobile servicing and Airtel Money. In the smaller townships and countryside locations, there are shops that offer Airtel’s products and services through partnerships with the company. This enables many of the local residents to still receive the same high quality customer care as their city counterparts. “We are very much driven by the vox populi and we want to deliver the same service capabilities no matter where you live in Malawi. To this end, we have partnered up with a lot of smaller shops and businesses in order to promote Airtel services and to offer customers an official outlet for any enquiries and assistance they may need,” explains Schlittke.

Airtel in the Community

For Airtel Malawi, Corporate Social Responsibility (CSR) is a strategic endeavour that thrives

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on building long-term partnerships and stakeholder goodwill for the mutual benefit of the company and its beneficiaries, more so in the education sector. Airtel Malawi’s CSR project at salima lea school, located at daniel Village, on the lakeshore district of Salima, involved the company adopting the primary school in January 2011 as its ‘child’ to nurture and grow within the Airtel family. the school has 1,933 pupils, 31 of whom have a disability. With just 23 teachers, this enrolment level means that the school has a pupilto-teacher-ratio of 1:83 compared to the government recommended ratio of 1:60. Having been built in 1958 and with little regular maintenance, some of the structures are noticeably old. the school structure has four dilapidated school blocks which split into eight classrooms. Due to

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insufficient classrooms, pupils in five of the classes learn under trees and while a few classrooms have school desks, most do not. Teaching and learning materials are consistently in short supply but after Airtel Malawi adopted the school, things improved greatly. During the partnership, Airtel Malawi has renovated a two-classroom block at the cost of around K2.9 million, donated teaching and learning materials worth K2.5 million and school desks worth K1.8 million. Airtel has also financed the connection of piped water to the school, which has allowed pupils to access safe drinking water. In addition, Airtel has helped to set up a Teachersâ&#x20AC;&#x2122; Revolving Fund, pumping in K1.3 million, a seed capital that allows teachers to access soft loans to further their education and achieve their career dreams. With a clear plan to increase accessibility to technology and communication in the country, Airtel Malawi is looking at many options to further network availability and services for customers. With a strong brand identity and affordable products, Airtel has built up the solid foundations of a company that will work with its consumers every step of the way to ensure that everyone is able to enjoy the benefits of accessing technology at their fingertips.

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Always Available Always Affordable

In the last 12 months alone, Airtel Rwanda has doubled their customer base as a result of the brandâ&#x20AC;&#x2122;s selling points which are affordability, innovativeness and high quality internet Writer Matt Bone Project Manager Donovan Smith

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irtel Rwanda commenced operations in March 2012 and has already become the most sought after telecom company in the industry for internet/data services and affordable smart devices. Unlike all other Bharti Airtel operations, Airtel Rwanda is in a unique position as the only greenfield operation in Africa to date. In the last year, the company has doubled its registered user base and is showing every indication that this number will further rise over the next 12 months. Teddy Bhullar, Managing Director of Airtel Rwanda, believes this substantial growth in only 2 years is down to two key reasons: Affordability in terms of both local and international tariffs, products and services and smart data plans that have pushed Rwandans to join the network. “We have brought in a great variety of plans and options for consumers in the country. Data is a massive revenue stream for us, consumers are always looking for new ways to communicate across different social mediums and we want to be able to give them exactly what they want. So far we have been able to do that although we could do more,” explains Bhullar.

Developing the Business Footprint

Business growth for Airtel Rwanda has been progressive the last 12 to 18 months. Although the predicted growth for the company is slightly higher than current figures, there has been a steady climb in the number of new registered users to the network. Airtel Rwanda are looking to capitalise on the consumer feedback, which indicates a desire for a bigger data and network presence. “Data is massive for us right now; we have seen more consumers join us because we can facilitate their need for data packages in rural areas, not just in the cities. If this current trend continues then I will be very happy with our market share,” Bhullar remarks.

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Exp

Teddy Bhullar, Managing Director, Airtel Rwanda

Exp Uses Live Experiences to Amplify Reach, Convert Customers and Drive Sales As experts of experiential marketing, Exp believes in the brand experience to bring communication to life and empower brands. Through our proprietary Sixth SenseTM strategic tools, Exp evaluates the brand opportunity against the consumer reality, developing a strategy that delivers value to both the consumer and the brand. Once the strategy is in place, our creative team conceptualises the idea and develops the Live+ experiential campaign – a multidimensional cross media approach to amplify reach, convert customers and drive sales.

Currently, Airtel Rwanda commands a 16 percent share of mobile users in the country and are looking to double this in the shortest time possible. The country’s mobile penetration now stands at 65 percent with Airtel Rwanda playing a significant role in this. “Last year alone, we launched an affordable mass market phone called Viziyo and we were able to connect over 50,000 Rwandans. This is in addition to other devices that we have made available to our customers. What we are doing really is supporting mobile penetration in this market,” Bhullar explained. He further added that so far, the brands highly targeted groups already own a mobile phone while the remaining group is predominantly made up of the over 75’s and children under the age of 10, who are not the target audience for Airtel Rwanda currently. “People of the older generation or the very young are not likely to want to buy a phone or data plan, as either they do not have the income to do so or have no interest in social communication on a digital medium. We work around this by concentrating all our efforts on our targeted consumer group,” cites Bhullar. It is not just the customer

base that Airtel Rwanda are looking to grow. Over the next 12 to 18 months, the company are looking to expand their data service network from 65 percent coverage to an impressive 85 percent coverage, country-wide. “At the start of our fiscal year, we planned a $30 million investment in our operations which are mainly to improve and expand our network while spreading our footprint in the country to tap even the rural areas of Rwanda,” Bhullar further explained.

Data, Downloads and Mobile Banking Airtel Rwanda are not just looking at data as being the main customer draw, but now have mobile money as another string to their technology bow. Airtel Money is the convenient and safe way to transfer money from person to person, or pay for goods from your mobile phone. It has become one of the leading financial tools in Africa and Airtel Rwanda has been capitalising on the success in other parts of Africa and bringing it to the country. “Airtel Money is very important for the people of Rwanda in transferring money to each other or paying for utilities and other supplies. If you live in rural areas, accessing a bank is not very easy and

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As a service offering Exp offers Brand Activation; Event Marketing; Sponsorship Marketing & Social Marketing leveraged through +Media; +PR; +Digital; +Sales Promotions; +Branding & Merchandising. With 19 offices in 15 countries, Exp is Africa’s largest and leading Experiential Marketing Agency.

www.expagency.biz can be very time consuming. Airtel Money can help you send payments quickly and safely to another person or pay bills, with the maximum of ease from your own home. This is a huge advantage to consumers who are working long hours and do not have time to get to the bank during the day,” Bhullar highlights. Mobile data is still the biggest draw for Airtel Rwanda to connect Rwandan’s with the rest of the world. With 3G already present in the country, the company together with partners is looking to rollout 4G in the shortest time possible to all the main business districts, with a future nationwide rollout over the next 2-3 years. “We are confident that with the 4G rollout with our partners, consumers will really see the benefit in their social interactions and internet lifestyle, by being able to download music and films quicker than they could before,” said Bhullar.

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Zonal Strategy

By having such a large customer base, Airtel Rwanda has had to look at their sales and supply strategies in a different way. Instead of having to travel to central locations in the cities for servicing and help, Airtel Rwanda have set up a greater number of zonal offices, where customers can access all the features normally reserved for large service centres. Within these zonal offices, Airtel Rwanda ensures that they always have a plentiful stock of affordable mobile devices, SIM cards and top-up cards available, so that customers can always get the items they need. “We believe that Airtel customers should have access to information and airtime accessories every time they go to one of our regional service locations. We pride ourselves on always being available and most importantly, always affordable. Without our customers, we would not have a business, so we do everything

Success is Always Achievable in our power to make the consumer experience with Airtel Rwanda as Bhullar is keen to press just how positive as it can be,” proclaims Bhullar. successful Airtel Rwanda has been since it began only two years ago, Corporate Social Responsibility and he puts this success down As a brand, Airtel is widely involved in to three key steps: “Planning, CSR especially in the area of education application and affordability. These with the ‘Adopt a School programme’, three points are exactly what has made Airtel Rwanda take long which is widely participated by Airtel strides in such a short space of in all of their operations. “Here in Rwanda, we have so far adopted one time. Firstly, we plan our expansion into the country carefully and with school called Nyirarukobwa where strong market research, taking into we made major refurbishments consideration all aspects of local like painting, provided desks and economy and lifestyles. Secondly, generally created a model school. we then apply this background We shall be adopting another school knowledge into actionable steps this year in which we shall provide that we build the foundations of digitised educational content and our company onto. Thirdly, we data. Furthermore, through our guarantee our prices are affordable Airtel Rising Stars sponsorship, we to the consumer, or no matter how have been able to develop grassroot good the first two steps are we will football talent. We are currently not have any business. This is what working out a strategic CSR policy makes us so successful. This is the that will guide the brand in further Airtel way.” activities,” Bhullar says.

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With acting MD Arindam Chakrabarty in post, Airtel Uganda have witnessed continuous steady growth in the telecoms and ICt industry Writer Emily Jarvis Project Manager Donovan Smith

irtel are one of the world’s leading providers of telecommunication services with significant presence in 20 countries, with 17 of these being in Africa. the population of these 20 countries represents around 26% of the world’s population. In Uganda, Airtel is the 2nd largest telecoms operator and although mobile penetration in Uganda is around 50-60 percent, the market continues to show considerable potential, with growth being driven by increased data usage and boasting an estimated overall growth rate of 6%. airtel uganda’s product offerings include 2g and 3g wireless services, mobile commerce, fixed line services, enterprise services including national and international long distance services. “We have a unique and strong three-pronged value proposition that we believe is behind our continued growth in this market. our service delivery is based on affordability, availability and accessibility of voice, data products and mobile money,” says Acting Managing Director Arindam Chakrabarty. the introduction of mobile telephony has revolutionised Uganda’s telecommunications industry; the market remains overcrowded which has led to a price war and consolidation among the operators. However, some of the competition has left the market in recent years. “In light of some operators exiting the market, Airtel intends to make additional investments in Uganda, insuring our customer experience is superior in terms of its value and quality.”

the vibrant legacy of Airtel Since the rebrand in 2010, the Airtel name came with a promise to meet the emerging needs of customers with innovative, affordable and relevant solutions to empower

consumers, giving them the freedom to do what they choose, providing them with the tools to meet life’s daily challenges. to reinforce this rebranding strategy, the firm was recently awarded the Super Brand 2014 and best employee motivation initiative from the Federation of uganda employers for the employer of the year Awards 2014. “the last 12-18 months have seen a great deal of change at Airtel Uganda. Perhaps the major development would be the merger with Warid telecom, which saw our network of subscribers grow to over 7.2 million under the Airtel brand. this was also the first telecom merger to happen in Africa and we are proud to say that one and a half years later, we have grown much stronger,” highlights Chakrabarty. Moreover, Airtel are engaged in providing employment to over 100,000 people across the country through both direct and indirect employment opportunities. Airtel have seen their market share grow consistently. this is down to a number of factors including the exemplary service and the network quality, and their successful foothold in the data market. Being landlocked, the country depended entirely on satellites for its international connectivity until 2009, when several international submarine fibre optic cables landed on the African east coast. Uganda is now connected via a national fibre backbone extending to its borders with neighbouring coastal countries. By 2013, prices for international bandwidth had fallen to a fraction of their original cost, but retail pricing of broadband services is still relatively expensive, especially when considering purchasing power parity. However, wireless and mobile technologies such as wimax, ev-do, hsPa and lte are now putting the internet within reach of a much wider part of the population than traditional

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ﬁxed-line DSL services have in the past. These improvements in infrastructure are revolutionising the market and enabling converged voice, data and digital media services, which is a huge advantage for Airtel Uganda. “Additionally, we have also seen a major uptake of our Airtel Money product. I believe that the versatility of this product is what attracts consumers to it. What started out as a money sharing mobile platform has evolved to include payment of utility bills and taxes. We have ventured into a number of partnerships, as we try to further advance the abilities of Airtel Money,” cites Chakrabarty. Airtel customers can also purchase fuel from their Airtel Money accounts; which has come as a result of their partnership with Total Fuel Stations. What’s more, the company recently partnered with Barclays Bank to enable Bulk Payment solutions for their subscribers. Organisations can now transfer funds in the form of salaries and allowances to their employees using this service. “These are just a taste of the things happening at Airtel. We have a host of products, campaigns and partnerships that enable us to deliver exceptional service to the Ugandan market,” says Chakrabarty.

Bright Futures

At Airtel Uganda, social responsibility goes beyond giving to charities and the need extends to every aspect of the business, making it a vital part of their “DNA” as Chakrabarty further explains: “We are involved in a number of projects that help the young people of our country realise their potential through a holistic approach to education and use of technology.” Under the Our School Initiative, Airtel adopts and upgrades the physical infrastructure of under privileged schools. “So far we have adopted three schools

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since the programmes inception in 2011 and donated/built among others, well stocked school libraries, sanitation facilities, water harvesting systems, lightning conductors to ensure safety of the children, scholastic materials and had our staff members participate in all these activities,” Chakrabarty adds. To give the children an all-round education platform, children between 11-17 years take part in the annual Airtel Rising Stars tournament; the largest pan African football talent program which focuses on identifying and nurturing budding talent from the grassroots to a national platform. In partnership with Arsenal FC, the children have an opportunity to attend training clinics that expose them to the game of football under the careful tutelage of Arsenal coaches and trainers. “Notably, 4 of the children that played in the recent under 17 games of Uganda Vs Rwanda were a product of Airtel Rising Stars,” comments Chakrabarty. Among other initiatives are the Connecting Digital Hubs; a partnership with British Council in which Uganda has connected 14 Digital hubs across Uganda with data to ensure that children, adults and trainers are well conversant with the use of internet to connect to a world of opportunities with valuable information and research.

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What makes Airtel Different? There are a few factors that Airtel consider make them stand out from an ever-crowding market: “For one, all our promotions and tariffs are clear and transparent. With us, what you see is what you get. We don’t have hidden terms and conditions. When customers make a call they get a call notification which tells them how long the call is and how much it cost and how much is left on the tariff – this way the customer is always aware of their usage. It helps them budget and our customers like that type of service. Secondly, our call centre is always on hand to assist our customers. Thirdly, we continually invest in improving our service, networks and customer service. We never stop looking for ways to improve. We also have extremely fast broadband speeds and competitive tariffs, whilst focusing on providing the best service around. We don’t want to be the largest; we want to be the most loved brand in Africa and the most loved brand in the daily lives of Ugandans,” Chakrabarty concludes.

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Q&A

with Charity Chanda Lumpa, Managing Director of Airtel Zambia Africa Outlook spoke to the first female and Zambian Managing Director for Airtel Zambia, Charity Chanda Lumpa Writer Matt Bone Project Manager Donovan Smith

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Tell me about Airtel Zambia’s operations in your own words Airtel Networks Zambia Plc is a leading telecommunications service provider that has the widest geographical footprint in Zambia. We also have the largest presence in the rural areas of the country as well. Airtel Networks Zambia Plc is a Bharti subsidiary which has been operational in Zambia for the last four years after the acquisition of Zain in 2010. We are a one-stop shop for all types of customers, specialising in all consumer needs be it corporate, Small and Medium Enterprises (SME’s), high net worth and personal. Airtel Zambia are also an equal opportunity employer currently employing 319 employees, 201 are males and 118 are females. Of the total Senior Managers and Executive Committee, 30 are females and 50 are male. We have 9 expatriate employees of whom 5 are of Indian origin. What has Airtel Zambia been doing over the last twelve months? In the previous year we have been concentrating on developments across our range of products and services, and focusing on expanding and enhancing network. The Zambia Information Communication Technology Authority (ZICTA) mandated SIM card registration exercise, successfully concluded at the end of January 2014 with the company achieving 93% registrations. We have also embarked on a people development programme where we are enriching the skill levels of all our employees via interventions such as short term assignments and training as well as establishing a leadership academy that will make Airtel as a source for industry talent. Airtel acknowledges that data services are the next frontier in our market where we will see Voice revenues reduce

while data revenues will increase. We have seen a steady shift in Voice via data services and an increase in the consumer appetite for internet related services.

In the previous year we have been concentrating on developments across our range of products and services, and focusing on expanding and enhancing network”

What issues have been affecting the company and the telecoms industry as a whole? The issues affecting the industry have been in part, the declining consumer disposable income, increased energy costs and fluctuations in Forex’, government taxes and levy. Our biggest challenge is the cost of doing business on the back of these significant foreign exchange fluctuations, increased energy costs and stringent regulation. It is characterised by promotions and an upsurge in data usage at both personal and corporate level and customers are more discerning. The industry is set apart by rigorous regulation, stiff competition and a tough economic environment. We are however well positioned to shoulder these challenges by tapping into the growth markets of data and a differentiated enterprise business offering. Where have you seen the most success in the last year? Under our Airtel Money platform, we have successfully registered in excess of 3.1 million customers. The service has continued to successfully facilitate the payment of incomes particularly daily commissions and allowances to companies who recruit staff working in remotely located areas such as road and construction works, and agricultural outreach organisations. Not only has this platform eased the payment solutions but has also facilitated for financial inclusion in rural areas and opened up employment

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opportunities. We have also increased access to internet services for many subscribers across the country by offering low cost internet enabled handsets. This will no doubt make Airtel Zambia the number one Internet company in the not too distant future. Are there any areas where you strive for improvement? Naturally like any business, we aspire to continuously improve our voice and data services with more data penetration across the board. The initial network improvement works commenced in May 2013 and other major works have begun and will conclude at the end of 2014. Capacity upgrades are to be rolled out in order to further improve 2G voice and data quality. In addition, capacity expansion for 3G and second carriers will

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The company will continue to enhance its revenue and customer market share leadership as the network with the widest geographical footprintâ&#x20AC;?

be implemented over a wide geographical area in line with the objective of infrastructure refurbishment and upgrade for all critical of all our sites. These continue to be a key focus for sustained quality of service. LTE testing is underway and will be rolled out later this year. What are Airtel Zambiaâ&#x20AC;&#x2122;s aims, targets and projections for 2014 and beyond? The company will continue to enhance its revenue and customer market share leadership as the network with the widest geographical footprint, offering its customers an unrivaled differentiated service and product offering. As I earlier stated, significant investment has been committed to enhancing quality and coverage by the end of December 2014. Needless to say

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Chairty Chanda Lumpa, Managing Director, Airtel Zambia

that, investment in our network is an on-going priority. We are grateful to our loyal customers for their support and we wish to commit that we will ensure that we continue to remain focused on providing them a great customer experience. Finally, what would you say is Airtel Zambiaâ&#x20AC;&#x2122;s secret?

Our people underlined by a robust and qualitative network and services are the secret to our successâ&#x20AC;?

Our people underlined by a robust and qualitative network and services are the secret to our success. As the leading network provider in Zambia, we are here to stay and have established our roots through the purchase of our head office building. We are constantly exposing our local staff to various Airtel countries as part of our focus people development plans, to enhance skills and experience of our valuable staff. I would like to say thank you to the entire Airtel Zambia team and to our loyal and valuable customers.

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With the continued success of MtN Ugandaâ&#x20AC;&#x2122;s services and a loyal customer base, the future looks increasingly bright for the company Writer Matt Bone Project Manager Donovan Smith

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TN Uganda launched their commercial services in Uganda in October 1998 and has seen its market share rise every year since. Today, MTNâ&#x20AC;&#x2122;s share stands at 55.3% in a highly competitive market of 6 players. Through a commitment to a positive customer experience and the development of innovative products, MTN has grown to become the leading telecommunications company in Uganda, currently serving in excess of 9.7 million customers. Ernst Fonternel, Chief Marketing Officer for MTN Uganda has overseen the latest surge of new strategies and policies being put in place within the company, that are heralding a new dawn in mobile technology and services. â&#x20AC;&#x153;MTN Uganda has always strived to be the market leader in all aspects of our business. We pride ourselves in giving our customers state-of-the-art technology at their fingertips, no matter where they live in the country. It is a new dawn for Ugandan telecommunications and we are proud to be leading the way,â&#x20AC;? Fonternel explains.

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innovation and Drive

MtN Uganda is renowned for its innovation and ambition to be the first to market life-changing telecommunication and It solutions as Fonternel explains: “In 2008, we launched the first mobile money service in Uganda with tremendous success while we also revolutionised access to information by heavily investing in our data services. In 2013, MtN launched 4g lte which together with our national 3g+ and 2g coverage guarantees our customers internet access in over 80% of the total addressable ugandan market. with mtn 4g lte, our customers get the fastest internet with speeds of up to 100Mbps. We are aiming to be a driving force behind

Uganda’s continued transformation, through telecommunications and ICt innovations. We are leading the delivery of a bold new digital world through a concerted drive to innovate and launch solutions that will make our customers lives a whole lot brighter.” Currently, 2.6 million MtN subscribers use the internet, the majority of which are set up on bundles that are offered in daily, weekly and monthly packages, and with 4g becoming more commonplace in the country, there is expected to be a rise of new data users in the next 12 months due to faster speeds and an enhanced user experience. MtN Uganda has installed over 3200km of fibre optic cable with the

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goal of laying a further 500km by the end of 2014, which makes MtN one of the biggest fibre optic networks in Uganda. It’s worth noting that mtn built africa’s first fibre-to-thedoor network, which demonstrated the company’s commitment to get customers online. MtN has seen the need for high speed data grow rapidly over the last 12 months and MtN Uganda has ensured that they are ready to facilitate this need. “the Fibre optic Line we have installed allows us to provide a wide range of telecommunication services, including voice and fax, but more importantly, high speed data and broadband. High speed data networks are essential to allow corporate businesses and individuals to take advantage of the new technological boom in Uganda,” Fonternel cites and goes on to say that “MtN want Uganda to have the same data speeds as europe.”

Mtn Mobile Money

MtN MobileMoney is an electronic wallet service that enables customers to send and receive money anywhere in Uganda using their phones. the service provides a fast, secure, affordable and convenient way to send money to anyone on their mobile phone anywhere in Uganda no matter the network. MtN Uganda are driving forward this service in the strong belief that it will become the preferred method of secure payments for person to person and across businesses. “Mobile Money has been a revolutionary service offered by MtN to its customers. Being able to send and receive money with just your phone has changed the way money is exchanged in Uganda. No longer do you have to go to a bank or financial institution for simple cash withdrawals or deposits, you can

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Ernst Fonternel with representatives from Kenya Airways

now send money on the go 24 hours a day, and if you wish to take out the money from your virtual wallet, you can do that as well,” says Fonternel, who continues by saying, “With over 20,000 MtN Mobile Money Agents across Uganda, customers can retrieve their money quickly and easily.”

investing in the country

over the last 15 years, MtN Uganda has continually invested into the country’s telecommunication infrastructure, with US$140 million in just the last two years alone, being pumped back into the community and country. this level of continued commitment to both Corporate

We have thought about how we can help those living in rural areas gain access to the same quality communication services as those living in the big cities”

Social Responsibility and Uganda’s ICt needs has won it plaudits from consumers and government alike. MtN Uganda are not stopping there though. to facilitate the need for a strong telecommunications infrastructure, the company has adopted a wireless approach to providing telecommunications services to the Ugandan market, which has already seen consumers reaping the benefits of wireless access. “With the lack of good roads and power grids in the country, we have thought about how we can help those living in rural areas gain access to the same quality communication services as those living in the big cities. We

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began rolling out wireless network coverage in these areas and now cover in excess of 90% of the population, providing services in over 150 towns and villages across Uganda,” Fonternel states.

customer care

Consumer experience is one of the main priorities of MtN Uganda. the company regularly opens forums on Facebook and other social media in order to listen to customer feedback. this customer feedback has been listened to by MtN Uganda and acted upon as Fonternel explains: “When customers wanted us to have more service centres that dealt with their problems and queries first time, we listened and created our 24/7 call centres. We want our customer experience to be second to none, so that the user feels that everything has been done to make them feel welcome.” mtn uganda offers customer care services in 7 languages for customers who call the help line, and has the biggest number of Customer Service Centres in Uganda working extended opening hours.

Business to Business solutions

With a brand name as strong and globally placed as MtN, the company has seen a sharp rise in the number of businesses looking to utilise their solutions available. Whether it be bulk bill payments or data centres, MtN Uganda has become the go-to company for enterprise solutions of both big and small companies. “We don’t just sell basic business components such as call centres or data handling, we offer complete business solutions encompassing various capabilities including cloud services and web data hosting among others. We are the only company in uganda to offer a truly global redundancy system, so that in

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We want our customer experience to be second to none, so that the user feels that everything has been done to make them welcome”

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We will continue to drive our products and services forward with customers telling us what they want our focus to be on”

case of a complete data centre failure, the customer’s on line operations site can be rerouted to a different data centre and will continue accessing services normally,” Fonternel remarks.

A Successful Strategy

With the continuing success story of MTN Uganda, the future looks increasingly bright for the company. In 2013, the company was voted the 3rd most trusted financial institution in Uganda, beating banks and financial companies. This is even more impressive when you consider that they are predominantly a mobile communications company. Fonternel is confident that over the coming year MTN Uganda will push forward with new and innovative ways to further its services: “We believe that the next twelve months will be very positive for MTN Uganda. We will continue to drive our products and services forward with customers telling us what they want our focus to be on. On the side of MTN Business, we are looking at building bigger and more advanced data centres for business to business usage, in short, we will continue to listen to our customers and ensure that MTN Uganda continues to be the service provider that delivers a bold new digital world for customers.”

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reaLising east afriCa’s

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ew contenders in the east african telecoms market, Smart telecom are making waves in Burundi, tanzania and uganda, under the name smart east Africa. the company provides a range of innovative products to suit your lifestyle, and has become notoriously known in recent months for outstanding valuefor-money packages to suit your wallet. Smart telecom is owned in-part by the aga khan Fund for economic development (akFed), with their parent company being Industrial Promotion Services (IPS) Kenya. akFed has been funding social enterprises across east africa for over 100 years, making long-term investments with the aim of building economically sound businesses that create employment and improve lives. “the akFed has a 61% share in smart telecom and helps in all areas of the economy in east africa; from banking to insurance, education and other infrastructures. the missing piece was communication in order to link all of this together,” explains Abdellatif Bouziani, group Chief executive officer of smart east africa telecom.

improving the lives of east Africans

with huge support from the akFed, smart east Africa has a reputation for providing innovations to the telecoms sector Writer Emily Jarvis Project Manager Donovan Smith

the launch of smaRt in east africa in march 2014 also combines akFed’s experience of making long-term investments with the aim of promoting entrepreneurship and building economically sound enterprises, which provide employment opportunities and improve the lives of local people. In east africa, akFed’s investments include the Serena Hotels, Diamond trust Bank, Jubilee Insurance group, the Nation Media group and IPS’s diverse portfolio of projects in infrastructure (Bujagali and tsavo power projects) as well as investments in manufacturing. akFed’s parent organisation, the Aga Khan Development Network

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Aster

ster is a professionally driven infra engineering company providing a wide range

of products & services to address customer requirements, primarily in the power and telecom infrastructure segments. our focuses on quality, on time delivery and cost control have enabled us to reach where we are today, in our decade-long journey as an organisation. We have presence across India and our international footprint extends to the Asian, Middle eastern and african regions.

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We like to make our customers feel at home, hence why there are no higher rates charged in these countries. We consider ourselves to be one network”

(AKDN), has been making a positive impact on the lives of east africans for more than a century. “We look forward to many years of building on the investments that sister AKDN organisations have been making across Burundi, tanzania and Uganda,” cites Bouziani.

smart telecom launches cheapest call rate in uganda the telecom industry in Uganda is currently witnessing a new wave of price wars following the launch of Smart telecom’s cheapest call rate, which will enable subscribers to make an entire call, no matter the length, at only Shs74, making Smart telecom the cheapest telecom company in the market. the existing telecoms charge an average of Shs270 per minute. Justifying this low call rate, Bouziani said: “We asked them what they wanted from us and they said they wanted to make calls without being

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ltimate Security Limited (USL) started guarding services in Kenya in the 1970s, and in 1979 pioneered and developed a new concept and technology of providing electronic radio alarm protection services backed up by quick Response Force teams manned by trained security personnel. USL is today a major provider of security services in Kenya and Uganda. USL Uganda has been operating in Uganda since 1991 and it has a unique advantage of being controlled and guided by the experience and expertise of the largest east african security organizations. USL provides security services to over 500 clients countrywide with over 450 electronic alarm systems installed throughout Uganda. A wide variety of security personnel are employed to meet the number of assignments and security demand. tel +256 414301500 email info@ultimate.co.ug

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under pressure of time that’s why we are offering subscribers an opportunity to make a call which costs one price, without compromising on service quality; which we call smart pricing.” Moreover, Smart Telecom have made efforts so that customers can enjoy the use of their SIM across all three countries of operation in East Africa as Bouziani highlights: “We like to make our customers feel at home, hence why there are no higher rates charged in these countries. We consider ourselves to be one network.” With sufficient infrastructures already in place thanks to the AKFED, Smart Telecom have been able to ensure the latest technologies are in place from day 1; this includes 2G, 3G and 4G services across all of their markets.

Innovative Business Model Smart Telecom’s strategy in East Africa is to bring AKFED’s social enterprise business model and reputation for innovation and customer service to the telecommunications sector in Burundi, Tanzania and Uganda. “AKFED leverage more than ten years of telecommunications experience to make Smart East Africa the operator of choice. Together with AKFED’s other entities, we have extensive experience in emerging markets, particularly in East Africa,” Bouziani adds: “Our business model is based on getting enough people to use our unique products and services and be able to get returns based on margins. I believe this investment was well calculated and will bring back returns after we build a customer base, which has a primary aim to better service and assist our customers.” As a company that thrives off support from their customers, Bouziani considers CSR activities a vital part of Smart Telecom’s success: “Word of mouth is important for us. We are not just here to make big numbers, we

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want people to join us who understand our offering and want to have the best services at the best price.” Further to this approach, Smart telecom received its name directly from potential customers. “our customer-centric approach is exemplified by the Give us a Name campaign. this in itself is an innovation as nobody has dared to start a company without a name before, yet we dared to. We shortlisted 7 names out of 70,000 submissions that had been suggested by east Africans asked them what they would expect in terms of service provision and then aligned our business to their suggestions. We let you choose our name, because we are your network!” Bouziani commented.

looking Ahead

smart is proud to be part of the east African infrastructure and community. “We are excited to help connect the people of the region to one

We are confident that the combination of our world-class telecommunications technology and innovative products and services will transform the lives of East Africans, just as they have elsewhere”

another and to the rest of the world,” Bouziani continues: “we are confident that the combination of our worldclass telecommunications technology and innovative products and services will transform the lives of east Africans, just as they have elsewhere. We look forward to being your carrier of choice.” Smart telecom think of themselves as: “fun and exciting, because you made us that way.” the company believes that we all have the potential for greatness in our hands, and will continue to further their east african reach, with expansion plans on the cards. “We are building today for a brighter tomorrow, by realising our potential and helping you realise yours. together we can make a difference and really go places. Smart is the new mobile network for a new Africa. It is a network for the people and we are in it for the long term.”

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B u s i n e s s

C o n n e x i o n

Z a m b i a

Zambia

With a focus on delivering the Connective IntelligenceTM value proposition, Business Connexion are bringing cloud computing to Zambia Writer Emily Jarvis Project Manager Donovan Smith

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he diverse and vibrant Zambian economy presents a range of opportunities for the delivery of world-class Information and Communication Technology solutions. One such company that benefits from this is Business Connexion, who have successfully delivered industry-leading solutions to the financial services, academic, telecommunications, SMB, public sector as well as oil and gas sectors for over five years. Focused on delivering the Connective IntelligenceTM value proposition, the company has over 7000 members of staff, who pride themselves on flexibility, teamwork and cross-skilling. Connective IntelligenceTM is about connecting the world’s most advanced information and communication technology (ICT) products, services and solutions, and merging them with the skills and experience of some of the world’s best-qualified individuals, to provide simple, affordable solutions to Africa and the world. With this approach, Business Connexion Zambia has the capability to successfully implement substantial projects while maintaining close relationships built on mutual value-creation. “The Zambian office has delivered projects including data centres, wireless networks, cabling infrastructures and more,” explains Damiano Tembo, CEO of Business Connexion Zambia. The company holds partnerships with major vendors including Cisco, Avaya, Microsoft, IBM, HP, Systimax and NetApp, underpinning Business Connexion’s presence with access to expertise and resources for the design, delivery and support of elegant solutions to complex business problems. “Our team represents solid service delivery and is armed with new age technologies.”

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B U S I N E S S

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“to enrich communities by making the impossible-possible, through technology”

We pride ourselves on our service delivery, dependability and performance and we are renowned for our provision of high quality, high performance solutions”

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With excellent service delivery in mind, Business Connexion are able to offer unique propositions to the market including cloud computing, which is one of the services that places the company in a leading position. “We pride ourselves on our service delivery, dependability and performance and we are renowned for our provision of high quality, high performance solutions,” tembo states. When asked what makes the company unique, tembo explained how having business-related engagements with their customers has helped them stand out: “We are not a technology company that sells technology for technology’s sake. We have strategic engagements with customers where we discuss business value; we make sure that we meet the needs and wants of our clients.” With one of the biggest SAP competencies in the continent - over 250 SAP practitioners – Business Connexion are well-positioned in the technology industry. Business in Zambia has been relatively small but steady and tembo was keen to pin down the reason for this: “with healthy profits, we have seen a steady growth. In the last two years, we have been focussed on changing our strategy, such as bringing in these cloud solutions and buying a new company with Managed Print Service capabilities exclusively through Canon, establishing the services component of our business, and placing further focus on our sales team.” establishing this link with Canon has allowed Business Connexion to provide managed services for printing, in turn, allowing them to increase their local business in their various locations. “the best example of this is that we now have 140 staff in nigeria, whereas, two

years ago we only had 28,” cites tembo. this four-fold increase is a result of the new services Business Connexion have implemented.

“We are expecting a boom in cloud computing” Challenges that tembo discussed with us include a lack of infrastructure around power generation and continuity: “Zambia’s key issues resemble those of other low income countries. Privatising the electricity power supply has been a big challenge, so has broadband penetration. People are certainly looking for strong political leadership to drive a lot of the initiatives [from an economic perspective] into fruition.” this being said, tembo also highlighted that there seem to be plans being formulated quite rapidly to address the aforementioned issues. “I think people are attracted to this market because of the size of

We are expecting a significant boom in cloud computing. With this technology being a relatively new concept in Zambia, some level of apprehension will prevail, but this will quickly dissipate as the concept is better understood”

the populous. However, I think the challenge lies in how you realise the benefit out of this. this means you have got to be focussed on what the needs of the market are to identify a sweet spot in the market.” Business Connexion are eagerly waiting to see what impact the new National Broadband Plan will have on increasing broadband penetration in Zambia, which would of course have a significant impact. “we are expecting a significant boom in cloud computing. With this technology being a relatively new concept in Zambia, some level of apprehension will prevail, but this will quickly dissipate as the concept is better understood,” says tembo. when it comes to staff and training, Business Connexion recognise that it is not simply about obtaining people with the skills and training needed to fulfil a job description, it is equally as important to employ people who are the right culture fit for the Zambian

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Zambia

DUXBURY NETWORKING WHY DUXBURY NETWORKING? Duxbury Networking breaking down the barriers between you and new technologies Duxbury Networking is a leading Specialist Networking Distributor in the African channel. We are a medium sized company with family-style hands on culture and this has allowed us to develop a solid, personal and unique relationship with both small and larger leading vendors. We are customer driven and believe in selling solutions. The company is privately owned which allows for flexibility and rapid transition. With distribution centres in South Africa and partners in the SADC countries we are able to offer easy access to stock. New Partner enquiries: Tel +27 11 351 - 9800 Email pnel@duxnet.co.za

www.duxbury.co.za

Our focus is beyond just the provision of technology, but providing value to, and growth of, communities and skillsâ&#x20AC;?

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culture. “People tend to be quite protective of their skills in order to obtain the best jobs to enhance their career. Whilst we understand this, we invest quite heavily in training our staff. Cloud computing is a new concept in Africa, and indeed on a global level, so we need to train people in these new areas anyway; in turn, we up-skill the industry.”

“it’s all about concept and applicability” As a multinational company, Business Connexion are able to operate on a global level. With a key focus on up-skilling their staff by creating an environment that is conducive for creativity and productivity, tembo is convinced that his team will continue to innovate and subsequently prosper in the technology sector: “our focus is beyond just the provision of technology, but providing value to, and growth of, communities and skills.”

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Computer warehouse group pLC

Q &A afriC aâ&#x20AC;&#x2122;s iCt

entrepreneurs africa outlook hosted a q&a with austin okere, Chief executive officer of Computer warehouse group (Cwg) PlC and entrepreneur in Residence, Columbia Business School, New york Writer Matt Bone Project Manager Donovan Smith

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Could you give me an introduction to Computer Warehouse Group? Computer Warehouse Group (CWG) was established in September 1992 with just a US$16,000 operating budget and six staff. We built the company up slowly and steadily in the ICT markets and began to expand. We thrive on staying ahead of the curve in the ever changing technology landscape and maintaining a dominant leadership position. We have evolved from being a Dell PC sales and support company, through providing Enterprise Systems, becoming an outsourcing company providing Managed Services to major clients such as MTN, where we have over 100 badged engineers managing their IT infrastructure, to becoming a dominant IT utility enabler in our region, providing Software-as-aService through Cloud Computing on a subscription basis. We crafted a major ICT plan in 2010, realising the popularity of cloud computing, and the major opportunities for this in our region, following the increase in broadband access from 0.65tb to a combined capacity of 9Tbits per second by the end of 2013. We now have a staff complement of 650 employees, of which 80% are engineers and ITIL (Information Technology Infrastructure Library) certified. We have consolidated our leadership position in the ICT sector with a record turnover of about US$130 million (N20.8billion) last year. We were very clear that while our tremendous growth over the years had been propelled by our traditional businesses in hardware infrastructure sales and support, software licensing, and VSAT bandwidth vending, these represented mature and declining margin businesses. We also launched a Tier3 Data Center, which was commissioned by

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C om p u t er

W are h ouse

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Tri-Continental

ri-Continental has developed an operation spanning 28 countries in Central, East and West Africa (CEWA). We are IBM’s leading distributor of IBM hardware, software and services in this region and have consistently been IBM’s strongest performing channel partner over this time. Tri-Continental’s aim is to provide complete end-to-end IT solutions serving over 140 IBM business partners. Furthermore, Tricon, through our Academy is able to deliver client education in any of the CEWA countries, either on our client’s premises or in one of our 8 Academy facilities based in our branch office locations. Tel +27 (0) 11 785 9980 Email gary_carroll@triconti.com

www.triconti.com

no less a person than Engr. Dr. Ernest Ndukwe, the ‘Father of Nigerian Telecoms’. We are now engaged with companies who seek to co-locate their Disaster Recovery Systems with us. What makes CWG stand out from the crowd? We are significant partners to the global IT majors such as IBM, Oracle, EMC, Wincor-Nixdorf, Infosys, Cisco and Symantec. We have also evolved a subscription business model, providing Software-as-a-Service to customers through Cloud Computing, taking advantage of the abundant bandwidth at our shores and the attendant exponential increase in Broadband capacity. This initiative which was designed to empower SMEs to take advantage of technology to grow their businesses is tagged CWG2.0. The idea is to enable each of the 17.7million MSME (Micro, Small and

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We are significant partners to the global IT majors such as IBM, Oracle, EMC, Wincor-Nixdorf, Infosys, Cisco and Symantec”

Medium Enterprises) in Nigeria to build sufficient capacity to add one more employee. By so doing, we would be helping to foster inclusive growth by creating an additional 17 million jobs. Our remuneration is mainly variable based and is correlated directly to the results achieved. This makes everybody in the company see themselves as owners; sort of entrepreneurs within a larger entrepreneurial establishment. They are focused on the big picture, play as a team and are accountable for the businesses under their control. What has your business been doing over the previous year? 2013 marked a significant milestone for CWG, as we listed our shares on the Nigerian Stock Exchange, lifting the exchange by about N14b, and becoming the largest ICT security on the NSE.

Tec

nolo

IBM’S LEADING DISTRIBUTOR IN AFRICA 8 EDUCATION CENTRES ACROSS AFRICA

PARTNERING & FINANCE SOLUTIONS LOCATED IN 28 COUNTRIES

SERVICE CENTRES IN 8 COUNTRIES

www. tri c o nti.c o m Y O U R I T G AT E WAY T O A F R I C A

We consolidated the significant progress we have already made towards becoming the number one IT utility enabler in Africa, by launching two additional Cloud products; SMERP, an Enterprise Resource Planning application for SME’s on a subscription basis and the Diamond Yello Account in conjunction with MTN, Ericsson and Diamond Bank that allows the 57m MTN subscribers to be Mobile Money enabled. What have been some of the challenges in the ICT industry in Nigeria? The most challenging issue in the ICT industry here is the unavailability of skilled personnel in significant quality and quantity. This perhaps stems from the lack of targeted investments in the education sector at primary, secondary and tertiary levels. As our business is majorly people driven, we have taken steps to plug the skills gap by establishing the CWG

The most challenging issue in the ICT industry here is the unavailability of skilled personnel in significant quality and quantity”

Academy. The academy is a three month crash course in empowering intakes with our culture and the technical essentials for one month, followed by an intensive two months internship program. We started with 50 intakes a quarter in Lagos, but have now rolled out the program to Port Harcourt, Abuja and Ghana, with plans to launch in Uganda and Cameroon in the third quarter of this year. How would you sum up the current state of the industry then? The recent GDP rebasing puts Nigeria as the largest economy in Africa, with a GDP of $510 billion. The most surprising revelation is that the services sector is the most significant contributor with about 52%, with ICT telecoms accounting for about 9% of GDP, and targeted to grow to 15% by 2015. The major drivers of this growth are: the undersea fibre optic network,

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Austin Okere, Chief Executive Officer of Computer Warehouse Group

providing greater broadband speed at lower costs; favorable demographics, assuring increasingly affluent and youthful population; a booming telecom industry and the demand for efficient telecom technologies. These drivers shall create opportunities and CWG, as always, will take advantage of these openings to create value for our customers and generate additional sustainable revenue streams. How important is the supply chain to your business? Supply chain and logistics are very essential to our business, as we depend on logistics partners to fulfil customersâ&#x20AC;&#x2122; orders. There has been a major challenge in meeting the demands of a growing economy such as Nigeria. There are however global companies that are moving into the region through local partnerships to raise the efficiency of this key component of business. The cost of logistics is also a major challenge, as it costs about twice the amount to ship a container between two African ports, as it does to ship it from America or Europe. What we have done to mitigate this is to have a stringent system of evaluating logistics partners, and then training them in the intricacies of our supply chain. We also work with the customers to be proactive in their requirements allowing us sufficient time to process their orders.

Our vision was to be the number one IT utility enabler in Africa by 2015. As we begin to enter the second half of 2014, I feel extremely confident that we are on course to achieve our aimâ&#x20AC;?

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What are your aims, targets and projections for 2014 and beyond? We are in the twilight of our last 5 year strategic plan, which we crafted toward the end of 2010. Our vision was to be the number one IT utility enabler in Africa by 2015. As we begin to enter the second half of 2014, I feel extremely confident that we are on course to achieve our aim. We plan to

scale in our new subscription business model, possibly though acquisition of similar focused companies in the region. Having listed our shares on the stock exchange, we are confident that we shall be in a position to raise funds to purchase target quality assets, as well as our explosive organic growth. has your company won any awards recently? CWg was selected as a World economic Forum global growth Company (weF-ggC) at the 2014 weF, africa at abuja in may this year. CWg was selected for this recognition based on our phenomenal growth, global corporate citizenship, executive leadership and impact on the competitive landscape of the ICt industry in Africa. For the second year in a row, CWg was awarded Most outstanding Corporate Social Responsibility (CSR) technology Company of the year. We continued to support our host communities in 2013 by ingraining social responsibility as an integral part of our business model, with focus on the education sector. What is cWgâ&#x20AC;&#x2122;s secret? the secret to our success is to keep goals and aims realistic and keep things simple and let whatever you do be the best it can be, rather than the best it should be. We believe that there is always room for improvement, and we do not shy away from exploring possibilities, even if we make mistakes, as we stride towards continuous improvements and significant innovation. We pride ourselves on being industry leaders and take on the responsibility of not just following the track, but also blazing new trails for others to follow.

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a r e n e L

Experience! Quality! Innovation! renel are manufacturers of quality sweets and biscuits. After decades of operation, you can be sure that the company’s sweet and biscuit lines are of the finest quality. In 1946, Mr Robert (Rube) Lepar and Mr Abe Rubin had a vision which culminated in the manufacturing of sweets, in a small factory in Bulawayo. It was not long before the duo were manufacturing a range of hard boiled sweets that included the ever popular “suckers”, “sugar sticks” and “apricot balls”. Demand for their quality products grew and in order to increase their manufacturing capability, a purpose built facility was erected in the

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Our high quality product range is a result of our core values: Experience! Quality! Innovation!”

Belmont industrial area of Bulawayo. the partnership of Lepar and Rubin dissolved when Mr Abe Rubin relocated to Harare, where he established a successful bread making enterprise. In the early 1960s, Arenel entered the biscuit market with the purchase of Crown Biscuits. Arenel continued on its path of growth and product development and in 1973 additional premises were acquired some 200m west of the existing facility. therefore, a biscuit plant was purchased from overseas and installed. Arenel now manufacture quality biscuits to compliment their ever popular growing range of sweets. Soon, space and development dictated the purchase of yet another factory for

Through their three core values of integrity, loyalty and hard work, Managing Director Joshua Lepar is confident that the future is bright for Arenel Writer Emily Jarvis Project Manager Calllum Philp

warehousing and distribution, along with a facility for the transport division and maintenance workshops. “Our high quality product range is a result of our core values: Experience! Quality! Innovation!” Joshua Lepar, Managing Director of Arenel says. Now with a strong staffing of over 300, Arenel continue to expand both their biscuit and sweet divisions.

State of the Art Expansions In 2011, a state of the art oven with a width of 1.2m was installed at the Bulawayo factory, which added immensely to the enhanced quality and output of the biscuit division. “Consequently, with the immediate impact and success of the products

By re-tooling our facilities, we have been able to ensure that we once again become a major player on the African continent”

produced from this oven, another brand new technology biscuit oven with a belt width of 1.5m was installed to complement the existing production capability,” adds Lepar. Additionally, Arenel have installed a new lollipop plant line, which they intend to continue to grow their sweet production capacity with over the next couple of years. “Further, we have updated our wrapping and packing divisions to further enhance our product brands,” cites Lepar. In 2013, the company opened a much needed 8000m2 warehousing facility, which was purchased and redesigned to take care of the new increased production output, distribution and logistical needs to

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GODRICH FLOUR MILLS the godrich family have been in the milling business since 1902 when the first mill was constructed. Godrich mills have become leaders in the wheat and maize milling industry. Offering a premium range of wheat and maize products, godrich supplies quality goods to a range of varied customers. Godrich Flour Mills offers competitive rates and fast, efficient distribution on high quality wheat flour and maize meal to their South african bakery and consumer clients. Having completed work to increase their maize and flour milling production capacity in January 2013, godrich Flour mills are now able to offer their wheat and maize products to a broader base of customers. Tel +27 13 932 0155 Email info@godrichmills.co.za

www.godrichmills.co.za

In terms of the sweet and biscuit industry in Africa, I believe that there is a good level of competition that ensures that we are always keeping our pencil sharp, especially when it comes to efficiencies and reducing waste”

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ensure they remain competitive and continue their devotion to customer service excellence. “By re-tooling our facilities, we have been able to ensure that we once again become a major player on the African continent. We see our exports to neighbouring countries – even as far as Nigeria – as one of our major successes this year,” highlights Lepar. However, the company recognise that as a team, they are always working to further improve: “It is a task that we believe never ends.” Recently, Arenel purchased a property adjacent to their Bulawayo Head office comprising of 2.6 hectares where they are planning to build a new purpose built production facility as Lepar further explains: “This is to ensure that we stay abreast of new technologies as well as ensuring that we are able to meet the ever growing demand for the Arenel brand.”

Zimbabwean Industries

We are confident that our economy will turn around and in light of our confidence and in anticipation of an up take, we are gearing up for the upward trend in the Zimbabwe economy”

The current industrial climate in Zimbabwe is a difficult one. However, the understanding and assistance from the Ministry of Industry is creating processes in order to help further business opportunities within the country. “This is something we believe will be tantamount to the turnaround of the confectionary industry as a whole in Zimbabwe, and we hope to benefit from this,” Lepar continues: “In terms of the sweet and biscuit industry in Africa, I believe that there is a good level of competition that ensures that we are always keeping our pencil sharp, especially when it comes to efficiencies and reducing waste. We are always looking to bolt-on products in the food space, where we can use our existing plant, machinery, logistics and facilities which will reduce our costs.” Moreover, Arenel are targeting the mass market by producing smaller

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A renel

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For irresistible baking results, you need irresistible baking ingredients. Gloria flour and Arenel are the perfect baking partners to make mouthwatering, delicious biscuits that melt in your mouth. Gloria Flour is proud to be associated with Arenel.

value packs of sweets. “We are confident that our economy will turn around and in light of our confidence and in anticipation of an up take, we are gearing up for the upward trend in the Zimbabwe economy,” emphasises Lepar.

supporting communities Since its founding, Arenel has always had the policy of supporting charities and the communities at large. “We have had this long involvement through service organisation as well as through direct involvement. We support schools by way of prizes for year-end attainments as well as supplying sports equipment and sponsoring youth sport and so on. We recently sponsored the Zimbabwe Junior tennis tournament aptly named the Arenel Wimbledon Biscuit Junior Tennis Tournament and co-sponsored a junior rugby tournament in excess of 2000 players,” comments Lepar.

We have had this long involvement through service organisation as well as through direct involvement. We support schools by way of prizes for year-end attainments as well as supplying sports equipment and sponsoring youth sport and so on”

Arenel has also for over 40 years employed people from the community with various impediments (mainly drawn from the renowned Jairos Jiri organisation). “Arenel has a commitment to such persons from 100% sight impairment to persons who are in wheelchairs. they make up an important part of our all too valuable workforce team,” Lepar explains.

“integrity, loyalty and hard Work” through their three core values of integrity, loyalty and hard work, Lepar is confident that the future is bright for the company: “these elements are all about people, us as a company and all that entails; our suppliers and customers who are integral to us and our continued success; our labour as a team who make it happen and of course and very importantly our ever loyal customers. those elements make up our secret potion for success.”

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SPAR

Z i m b a b w e

with the Best of them SPAR are committed to developing the SPAR business by offering stores with modern layouts alongside the promise of world-class shopping Writer Emily Jarvis Project Manager Callum Philp

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PAR Zimbabwe is committed to providing a service that will exceed the needs of consumers, with a particular focus on retail innovation and a strong passion for food. The franchise aim their consumer offerings at all levels of society, by providing retail formats that suit particular areas within Zimbabwe, with roll outs of SPAR Supermarkets, SPAR Express stores and, in the medium term, SPAR Liquor outlets. For those of you who don’t know, SPAR is a voluntary trading organisation, where all independent retailers work together with their distribution centres to build scale, buying power and the SPAR brand for mutual benefit. “In Zimbabwe, we operate within 100 retail outlets using the SPAR, SPAR Express and SaveMor formats. During the course of 2012 and 2013 our growth has come from ongoing upgrades of SPAR stores, the roll out of the TOPS bottle store formats and the increase of new SPAR stores.” Globally, SPAR serves 11 million customers a day out of around 13,000 supermarkets in various formats. SPAR is the world’s largest supermarket chain by store numbers.

“The Four Just Men”

The story of SPAR in the early years stems from Adriaan Van Well, a Dutch wholesaler with vision. He was inspired by a simple yet powerful philosophy that independent wholesalers and retailers can achieve more by working together rather than working alone. It was the belief of Van Well that only through working in co-operation could the independent wholesale and retail sector survive and prosper in the face of increasing competition from multiple chains.

SPAR was launched in 1932 and was originally launched as DESPAR, an acronym of a slogan Van Well created to describe the organisation: “Door Eendrachtig Samenwerken Profiteren Allen Regelmatig”. This roughly translates in English as: “All will benefit from joint co-operation”. SPAR in Dutch means a fir tree and from the start, the evergreen fir tree symbol was used to identify the organisation around the world. The seeds for the international development of SPAR were already sown as ‘spaar’ which also means “savings” in a number of European languages. The company’s global footprint spans across 4 continents, trading in 35 countries worldwide; with the U.A.E being the most recent country to join in late 2011. In the late 1950’s, four grocery stores in Salisbury (now Harare) joined together to form a buying group, one of which was the Divaris Brothers. They called themselves “The Four Just Men” (after Edgar Wallace’s latest thriller at the time), and had buying meetings every ten days. After reading in the Sunday Times about SPAR’s launch in South Africa, they decided to apply to SPAR South Africa for a Rhodesian franchise. Vic Taitz and George Divaris travelled to Johannesburg and met with the directors of SPAR South Africa, who agreed to grant the franchise rights to two wholesalers: Pick and Save in Salisbury and Gordon Brothers in Bulawayo. SPAR in Rhodesia (now Zimbabwe) prospered but sanctions with South Africa forced the two wholesalers to seek their own rights directly from SPAR International in 1966 making them the 13th country to join the worldwide expansion.

Local Zimbabwean Stores

In Zimbabwe, SPAR is made up of 10 corporate stores and 60 locally

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S P A R

Zimbabwe

as “ local heroes”, as they actively involve themselves and their families directly with the communities within which they operate, investing time, energy and money into local community projects including clinics, orphanages, sports events We continue to and schools, to name a few. SPAR focus on customer retailers have a culture of strong family values and work ethic, a spirit care through initiatives of sharing with the fellow retailers and programmes and giving back to local communities. designed to enable our One such instance was the 12th SPAR Family Fun Run, held at Old stores to provide the Georgians Sports Club last year in best possible service to aid of Childline, which was a true our customers, testament of the goodwill that Zimbabweans have for a worthy especially through our cause. Close to 1800 participants service departments” took part in the 5km walk or 10km run to raise funds for Childline. This colourful crowd of local residents included the young and old, family pets and corporates – who partnered with SPAR to help make the event a resounding success. owned independent retailers across A total of over $9000 was raised from all the participants who the country. The retailers apply attended. Other companies and to become members of a guild of business people took this day as SPAR grocers, who in turn elect a an opportunity to also pledge their guild committee annually (made funds to Childline. up of retailers and wholesalers) to SPAR Zimbabwe is a leader in administer and protect the interests retail innovation and customer of the SPAR brand and its member ‘shoppertainment’. SPAR continues retailers, together with formulating to take advantage of gaps in the a brand strategy. market, and strives to provide “At SPAR we are committed to customers with a great shopping developing the SPAR business by offering stores with modern layouts and experience. Trading nationally out of 40,000m2 of stores and serving the promise of world-class shopping. over 4 million customers monthly This commitment has enhanced our reputation as a progressive and exciting across the country, SPAR remains committed to growth and pioneering brand and supermarket business. We retail development; in keeping with continue to focus on customer care their vision to be the most exciting, through initiatives and programmes innovative and sought-after retail designed to enable our stores to brand in Zimbabwe. provide the best possible service to our customers, especially through our “You, our valued customer, service departments.” come first. Your satisfaction drives Additionally, the independent our passion.” SPAR retailers are often referred to

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assessing tanZania’s

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Mantrac tanzania sees huge potential for mining in east africa and is geared-up to assist in all your equipment needs Writer Emily Jarvis Project Manager Eddie Clinton

he Mantrac group is the sole authorised dealer for Caterpillar Products in east africa; including Kenya, tanzania and Uganda. Mantrac tanzania distributes and supports the full range of CAt construction equipment including Wheel Loaders, Skid Steer Loaders, Dump Articulated trucks, Backhoe loaders, excavators, Motor graders, track-type tractors and BCP products. Moreover, Mantrac tanzania distributes Mining, Power Systems and Material-Handling and Warehousing equipment for a wide range of industries and applications. Mantrac tanzania is also the sole approved supplier of genuine Caterpillar parts, which are available at competitive prices. highly-qualified employees work through an extensive branch network that includes a head office in dar es salaam and branches in Mwanza, Moshi, Mbeya and Mtwara. the Mtwara branch was opened in 2013 specifically to support oil and gas companies in southern corridor of tanzania where there is huge discovery of gas; a future source of power for tanzania and east africa region in general. Furthermore, Mantrac tanzania is equipped to perform total overhauls, as well as having a team of qualified service engineers - equipped with the necessary diagnostic and repair tools â&#x20AC;&#x201C; which can be dispatched at any time to customers.

A rich east African history

Mantrac tanzaniaâ&#x20AC;&#x2122;s rich history stems back as far as 1925, when the company was known as gailey and Roberts. By 1937, Unilever came on the scene when the United Africa Company acquired gailey and Roberts, who at the time were engaged in agricultural and construction developments. Further, the company was purchased by the mansour group via the egyptian Caterpillar dealer, Mantrac, who had

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already established a world-class reputation as a dealer for over 25 years. Finally, in 2003, they settled on the name Mantrac Tanzania: “With dealerships in seven African countries, we decided to bring them all under the same ‘Mantrac’ umbrella. This has boosted our reach and reputation as a recognised CAT dealer in East Africa,” explains Graham Dickinson, Mining Operations Manager for Mantrac Tanzania. Today, Mantrac Group is a Caterpillar dealer in nine countries across three continents, taking great pride in delivering excellent service across the organisation, whilst remaining focussed on the future potentials in these respective countries. Mantrac Tanzania alone employs 297 staff members; approximately 41 percent of which have gone through the company’s own training programmes. The Mantrac Group also holds Caterpillar dealerships in Ghana, Nigeria, Sierra Leone, Kenya, Russia, Uganda, Egypt and Iraq. A regional Caterpillar Distribution Centre was built in Dubai in 2013, which is advantageous for Mantrac Tanzania as Dickinson discusses: “Due to working closely with the Tanzania Revenue Authority and customs to comply with their standards, the Dubai regional base has improved efficiencies resulting in an improved level of service to our customers.”

Supporting Local Projects Over the last year, Mantrac Tanzania has been supporting a selection of large mines across Tanzania including those mined by African Barrick Gold, Anglogold Ashanti, Petra Diamonds and Shanta Gold. “We provide end-to-end services to some of our contractors, including new machines and product support backup direct to the customer from our braches on their mining sites,” cites Dickinson. Additionally, in construction, Mantrac is assisting in both the development of new roads and the renewal of the

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MECHANISED CARGO SYSTEMS (T) LTD

ECHANISED CARGO SYSTEMS (T) LTD was established in 1993 operating in the name of F & P Express Services Ltd and from very humble beginnings have grown to become a force to reckoned with among independent customs brokerage and international freight forwarding companies. Since 1993 we have steadily expanded our organization and clientele to become one of Dar es Salaam’s leading customs clearance and freight forwarding companies. The extent of services and facilities provided by MECHANISED include import/export services by air/ocean, customs brokerage, break bulk, and long and short haulage transport systems for both containerised and loose cargo. We are very strong operationally at the DJNIA airport as we started our first office here more than 17 years ago. At this moment we have excellent relationships with the customs, airport authorities, Swissport and other stakeholders, and are able to rapidly facilitate any required operation immediately. Our strength lies in our total flexibility and ability to adapt to the rapidly changing economic climate. This coupled with our long standing reputation for high quality service and communication, underscores why MECHANISED has been so successful over many years enabling it to reach where it now stands. We will welcome any enquiries and will offer free ADVISORY SERVICES in this field as has always been our custom. We guarantee you our PERSONALIZED attention professionally. MECHANISED CARGO SYSTEMS gives you solution to all your logistics needs. P.O Box 5682 Dar Es Salaam Tanzania

www.mechanisedtz.com

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VRAJLAL’S (AGENCIES) LIMITED Vrajlal’s is a transporter of general cargo & bulk liquid for East & Central Africa. Apart from the truck & tanker fleet, Vrajlal’s has also got heavy duty cranes & low bed trailers for the transportation of Heavy Earth moving equipments. Vrajlal’s has association with almost all mining & drilling companies across Tanzania like Mantrac, Sandvik, Ausdrill, Bamboo Rock, Capital Drilling to name but a few and has provided satisfactory services over the last 5 years. We have an association with the following companies: Neelkanth Packaging - Carton Box Manufacturer VAL Insurance - Authorised agent for Tanzindia Assurance Co. Ltd Tel +255 (28) 2502763 / 2542470 Cell +255 784 252500 Email info@vrajlals.com

www.vrajlals.com TAZAMA Pipeline Power Modules, a fuel pipeline which runs 1,700km from Dar es Salaam to northern Zambia. “There are several pumping stations along this route, to which we are providing new engines and gearboxes. As next year is an election year in Tanzania, Mantrac is expecting additional construction projects to commence in the months’ ahead,” says Dickinson. Mining in Tanzania is currently dominated by gold mining; and there is huge future potential not only in gold mining, but for alternative commodities such as nickel, coal, copper, rare earth elements (REE’s) and uranium. Dickinson is excited by this: “If a new project came to our attention, our team are geared up and ready to assist the mining and construction industries from the get-go. We see significant potential for the mining of these alternative minerals. Tanzania has a wealth of natural resources, which includes over

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Tanzania has a wealth of natural resources, which includes over one billion tonnes of coal reserves; it is simply a case of having the right infrastructure in place to sustain mining it, and also finding an outlet for that resource”

one billion tonnes of coal reserves; it is simply a case of having the right infrastructure in place to sustain mining it, and also finding an outlet for that resource. As we are a long way from the ports, exporting raw materials has to be financially viable.” Moreover, Dickinson proposed that Tanzania’s coal reserves could be useful in terms of muchneeded power generation within the country, greatly helping the economy to grow. Mantrac is carefully considering their options in East Africa, with possibilities outlined in both Southern and Eastern areas of Tanzania.

Training and Customer-Retention For the last two and a half years, Mantrac Tanzania has been educating their staff in their new training school, located at Mantrac Dar es Salaam’s headquarters. “We invested US $1.3 million in this building which houses our training department. We have trained approximately 116 trainees and

resources

apprentices since the introduction of our training programs and are really reaping the benefits of this,” Dickinson highlights. The Group as a whole are keen to establish a working environment which encourages creativity, innovation and integrity; one that develops the talents of staff so they can achieve their full potential. Mantrac Tanzania work very closely with their customers, being attentive to their wants and needs. “We understand that one size does not fit all, hence we tailor our services to satisfy the requirements of our customers,” emphasises Dickinson. The company offer customer value propositions and integrated solutions that are both mutually rewarding and efficient, in order to establish long lasting relationships with clients. “Mantrac Tanzania and Mantrac Group are committed to continue providing world class solutions to wide range of its customers,” Dickinson concludes.

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Amathole District Municipality are committed towards selfless, excellent and sustainable service to all their communities Writer Matt Bone Project Manager Stuart Shirra

he Amathole District Municipality (ADM) is on the eastern coastline of South Africa and was established after the local government elections in December 2000. the municipality stretches from the Indian ocean coastline in the south to the Amathole Mountains in the north, and from Mbolompo in the east to the great Fish River in the west. the district lies at the heart of the eastern Cape Province and is presently home to about 1.7 million people. the economy of the district is dominated by Buffalo City, which comprises the coastal city of east London, King Williamâ&#x20AC;&#x2122;s town, Mdantsane and the provincial administrative capital of Bhisho. Amathole is a land of rivers and fertile floodplains, rolling grasslands, valley bush, estuaries, beaches, forests and waterfalls. the bio-diversity of the district is often remarked upon by tourists and locals alike and this could have possible options for future socio-economic developments and competitive advantages.

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A M A T H O L E

D I S T R I C T

M U N I C I P A L I T Y

THE DISTRICT HAS SEVEN LOCAL MUNICIPALITIES, EACH CONTAINING AT LEAST ONE URBAN SERVICE CENTRE. THESE ARE:

1. 2.

AMAHLATHI MUNICIPALITY (Cathcart, Stutterheim and Kei Road)

GREAT KEI (Komga, Kei Mouth, Hagga-Hagga, Morgan’s Bay and Chintsa)

3. 4. 5. 6.

MBHASHE (Dutywa, Willowvale, Elliotdale) MNQUMA (Butterworth, Nqamakwe, Centane)

NGQUSHWA (Peddie, Hamburg)

NKONKOBE (Seymour, Fort Beaufort, Alice, Middledrift)

NXUBA (Bedford, Adelaide)

SKG PROPERTIES

KG Properties has experienced continuous and sustainable growth in its portfolio since its inception in 2000. As an up-andcoming market leader in the realm of commercial, industrial and residential property development and leasing, the company has established itself as a fast growing and robust corporate entity in South Africa. We have a proven track record in the leasing of commercial and industrial property, and have been able to secure tenants for the government and private sector alike, sustaining long term relationships and providing customer excellence. We have over a decade of experience in the leasing of commercial properties, providing more than 500,000m² to our tenants nationally. We have been able to provide a service to our tenants through our inclusive approach that is pioneering in the South African development industry. We are able to meet every need you may have, to provide a full turn-key operation. This makes us a 1-stop shop when it comes to the provision, design and construction of rental space. We don’t want to be followers, but leaders; and we will do whatever it takes to be just that. Therein lies the spirit of SKG Properties. That’s the service SKG provides to all of their customers – a service that includes high quality products, dedicated staﬀ members from the top down, quick responses and dedication from start to ﬁnish. In general, our goal is to build on the company’s previous triumphs in order to become the landlord of choice in South Africa for both the private and public sector. One can easily see, that the future is well founded, for this spirited, courageous and skilled team. Tel +27 (0)43 706 6800 Email info@skg.co.za

www.skg.co.za

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Vision

ommitment towards selfless, excellent and sustainable service to all our communities.

xhoBAni security services

hobani’s aim is to create a culture within the organization that embraces the importance of security and value of customer assets. our management and staff strive towards accountability across the client spectrum securing not only the premises and valuable assets but building relationships with our clients, our long term partnership with Amathole Municipality being one of them. our approach is one of meeting the client requirements first, addressing key issues and delivering on expectations whilst offering a national footprint across all the major provinces. A proven track record has positioned us as the credible and reliable security solutions provider. tel +27 43 742 3232 email admin@xhobanisecurity.co.za

www.xhobanisecurity.co.za

sectors

mission t he AMAthole District MunicipAlity, in its DevelopMentAl MAnDAte, is DeDicAteD in contriButing to: ensuring access to socio-economic opportunities; Building the capacity of local municipalities within ADM’s area of jurisdiction; Ascribe to a culture of accountability and clean governance; sound financial management; Political and administrative interface to enhance good service delivery; Contributing to the betterment of our communities through a participatory development process.

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Sectors that provide formal employment in the district are: Public services 75,000 jobs; manufacturing 27,000 jobs; trade 25,000 jobs; and agriculture 17,000 jobs. the Amathole District’s existing manufacturing sector includes the automotive, textile, pharmaceutical, electronics and food processing industries. the automotive industry has strong linkages into activities such as component parts, industrial textiles and leather tanning. globally recognised companies operating in the district include: DaimlerChrysler SA, Johnson & Johnson, China Garments, Nestlé, First National Battery, Aspen Pharmacare, Yarntex and Coca-Cola Bottling. two of the eastern Cape’s spatial Development Initiatives (SDIs) for concentrated economic development the Fish River and Wild Coast SDIs - fall partly within the Amathole region. the

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east london Industrial development Zone - endorsed by the Department of trade and Industry - is aimed at export oriented manufacturing and processing and is ideally located close to the airport and harbour, the only river port in South Africa. the district has a good travel infrastructure in the form of roads and has excellent airport facilities at both east london and Bulembu Airport near Bhisho.

tourism

three tourist routes overlap the Amathole District, including the sunshine Coast (Port elizabeth to east london), the wild Coast (east london to Port edward), the n6 (east London to Bloemfontein) and a fourth route, the amathole mountain escape falls wholly within the district in the northern reaches. the district is renowned for its historical heritage as this was the

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D is t ric t

VALUES SELFLESSNESS Commitment and dedication to the provision of services to the community. PRO-POOR The poorest of the poor will be the main focal point for ADM’s business and service delivery. RESPONSIVENESS Striving for improved turnaround time in the delivery of services and in dealing with valuable customers. TRANSFORMATIVE ADM are making considerable strides to ensure sufficient institutional capacity (skills and human capital) to maximise transformation. INCLUSIVITY Including all stakeholders in planning, implementation, monitoring, evaluation and reporting in ensuring an integrated effort towards service delivery. DIGNITY AND RESPECT Ensuring that service delivery restores human dignity and respect. GOOD WORK ETHICS A professional approach in ADM’s conducted and ascribe to the Batho Pele principles. TRANSPARENCY Throughout business operations, ADM will ensure access to information and fairness to their stakeholders. INTEGRITY Constantly conducting business with utmost integrity as councillors and officials of the ADM.

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M unici p ali t y

Umso Construction (Pty) Ltd

mso Construction (Pty) Ltd is synonymous with Eastern Cape infrastructure development, this association goes back some 18 years ago when Umso Construction established its first office in Port Elizabeth in 1996. We have grown from strength to strength within the region and are today considered a significant market player. Our growth is not only limited to the Eastern Cape Province instead the whole country thereby allowing us access to resources and skills base across South Africa. We are a proud partner and participant of Eastern Cape Province development projects thus enhancing lives of ordinary South Africans with the region. We also proud ourselves with a sustained regional growth enhanced by government projects implementation agencies such as Amathole Water supported amongst others by OR Tambo District Municipality and Amathole District Municipality. We have to date installed no less than 1000kms of water delivery pipelines both bulk and reticulation in the region of the over the past 18 years. This includes many water treatment works facilities and water retaining structures (reservoirs) that have been built to support water delivery. Umso Construction continues to invest in capacity building and develop a skills base within the region to ensure future projects’ undertaking by various government departments and agencies is sustainable. We have to date employed more than 500 full-time employees in the region to further ensure healthy employment levels are the order of the day. Our commitment to the region remains and delivery of infrastructure projects is our business. TC Nkosi, Director. Tel +27 (0)43748 4747 Email info@umso.co.za

www.umso.co.za

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Go v ernmen t

area where nine colonial/frontier wars took place over a century between 1779 and 1878. The area is also renowned for academia, sport, and captains of industry. It is a place that has inspired poets, artists, sculptors, songwriters, photographers and authors. Four new heritage routes have been established, named after Xhosa kings and heroes. These are the Makana, Sandile, Maqoma and Phalo routes. Over 350 heritage sites have been identified within the district which is dotted with remnants of forts, mission stations, places of historical significance and burial sites of Xhosa kings. A haven for the adventurous, Amathole offers rock climbing, mountain biking, hiking, hunting, bird watching, canoeing, 4x4 trails, malaria-free game/nature reserves, water sports, including some of the best surfing spots in the world. The

weather is temperate and mild, and the countryside usually basks in balmy sunshine during winter days, making this area ideal for various sporting activities.

Projects

ADM’s Health and Protection Department ventured into a waste management promotion in Nkonkobe Local Municipality, with an aim to curb the challenge of illegal dumping in the region. ADM Senior Environmental Pollution Control Officer, Ayanda Mangqongoza said as an intervention, both municipalities partnered to promote recycling as well as preventing further dumping. Mangqongoza said the project has spin-offs that would benefit the local communities. “This is a yearlong project, which will then be renewed annually. The budget for this project is R 800,000, and the people who will benefit from it are community members, as well as school children.

There will also be a competition, which will be taking place on a quarterly basis, whereby the local schools of Nkonkobe will be competing against each other for a cash prize. The budget of this competition is R300,000,” said Mangqongoza. One of the speakers, Waste and Air Pollution Management Officer Nozuko Fotoyi from the provincial Department of Economic Development and Environmental Affairs, stated that waste management as everyone’s responsibility: “I am happy that school children have been included and encouraged to participate actively in waste management,” she said. She also stated that waste management encourages development, in the sense that it minimises illegal dumping sites, and therefore creates ample space to build houses. Waste Manager Unathi Madikane from Nkonkobe LM voiced her gratitude towards ADM for launching the project.

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dayme d m e d iC a L C en tr e & pr ivat e ho spi taL

a new

africa outlook profiles Pietermaritzburg’s daymed medical Centre and Private Hospital: the realisation of one man’s dream Writer Emily Jarvis Project Manager Eddie Clinton

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rom the inception, the spirit of caring, dedication and community involvement have all become the hallmark of Daymed Private Hospital. The sheer quality of healthcare soon ensured the popularity of the hospital. Daymed is complimented by the latest medical equipment and technology which enables the rendering of the medical service all that more meaningful and substantial. The modern architecturally designed building creates an ambience of friendliness and warmth and certainly adds a new dimension to the rendering of medical treatment. At Daymed Private Hospital, there is one factor regarded as more vital than all their resources - the unwavering concern for the patients. To this end, every single member of staff from the friendly reception clerk, to the caterer supplying the delicious meals, to each one of the top class specialists are committed to providing that extra degree of compassion and warmth. It is this personal attention that sets Daymed Private Hospital apart from its competitors, even in its tenth year of operations.

Realising the Dream In 2004, the Daymed Medical Centre and Private Hospital opened its doors. The facility is the realisation of the dream of Dr Navind Dayanand, who has used his own money to set up it up. And he’s doing a fantastic job. “We employ 120 staff and have over 200 beds, casualty, general and semi private wards, maternity, renal dialysis, an operating theatre, x-ray, ICU, ambulance services and much more,” Dr Dayanand explains. “It has taken a lot of resilience, hard work and determination.” Dr Dayanand is one of the most respected doctors in Pietermaritzburg

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D ay m e d M e d i c a l C e n t r e & P r i vat e H o s p i ta l

RN PROFESSIONAL CONSULTING SERVICES CC

he Team is proud to be associated with the DAYMED PRIVATE HOSPITAL project and have pleasure in delivering a world class facility to South Africans. The Design Team and the Owners have a strong social responsibility towards ensuring what we built was energy efficient thus the team employed a number of systems to ensure that the building carbon foot print was reduced as much as possible. Some of the green Initiatives used in the building are:

and the hospital was born from a determination to “do something better” as he highlights: “I wanted to have a small hospital and we’ve just kept on growing,” he says. “How has it changed? I initially founded a medical centre and it grew significantly leading to the opening of a hospital - initially 22 beds - and it continued to increase over time. The range of medical services has also expanded.”

Building for Success In the last 12 months the hospital has performed “very well” with ward occupancy at “about 93 percent”. Expansion plans are now nearing completion which will see the number of beds rise to 215. Dayanand loves the challenge of running his own hospital. “You get to do everything and I’ve been able to put my own imprint on everything. I think we can be more creative too and have

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a family-like atmosphere. Of course, decision-making is more straightforward and swift, so we can be nimble. Basically all hospitals in South Africa are run by corporate companies. I am one of the few that runs my own hospital. I have to watch over everything.” But Dr Dayanand wouldn’t want to take all the credit for the hospital’s success. “The biggest thing is having the right staff,” he says. But, getting “the right people” especially as the hospital expands will be challenging. In March of 2013, South African Health Minister Aaron Motsoaledi unveiled a national strategic plan aimed at rebuilding and revitalising the nursing profession. The National Strategic Plan for Nurse Education, Training and Practice was developed by a task team appointed by Motsoaledi following the 2011 Nursing Summit, which identified the main challenges facing the country’s nursing profession. The plan seeks to promote

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Lighting powered by Solar for a period of 8 Hours . Rain water is harvested and purified to be used as grey water. Aluminium shading panels and cladding reduces the heat loading thus reducing the temperature within the building. A heat recovery system is installed that transfers heat from the HVAC system to the hot water system thus heating the hospitals water supply at no added cost.

www.rnpcs.co.za

D Ay M E D M E D I C A L C E N t R E & p R I vAt E h O S p I tA L

high quality training along with high standards of professionalism and well resourced practice environments for nurses and midwives. It also aims to ensure strong leadership at all levels of nursing and midwifery practice, as well as the training of the number of nurses required to deliver healthcare services in the country. “there aren’t adequate nurses trained in South Africa and those that are trained are moving abroad, going to the Arab countries,” admits Dr Dayanand. “they are tempted to leave for financial gain. there are better paid jobs there, better conditions and less infectious diseases.” “We’ve had to recruit from India because of the shortage of qualified professionals here. Also, I trained in India and qualified there and Indians have a high work ethic, while the standards are excellent. Until we get sufficient numbers of nurses coming out of training institutions we will likely continue recruiting from overseas. their arrival in South Africa has and will ease the burden of South African nurses battling staff shortages.”

“there is a stark difference between public and private healthcare”

Daymed’s ongoing expansion plans will help position it for the future, especially in the fast-changing healthcare landscape in South Africa where healthcare can be divided into private and public. “there is stark difference between public and private healthcare in South Africa; no more so than when looking at the facilities on offer,” admits Dr Dayanand. It is amazing that in a country of 49 million people less than nine million are covered by health insurance, referred to as medical schemes. the public healthcare system is characterised by run-down buildings, missing medication and widespread corruption, and not a day passes without a story about broken

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Heal

equipment leading to deaths or facilities closing because they cannot afford to pay their creditors. The private healthcare system is a world apart. It has world-class facilities, the most advanced equipment and the best doctors. The result is that the quality of private care is much better than that offered in the public healthcare system. Of course, the National Health Insurance (NHI) scheme has been proposed as a way of addressing the balance. It has yet to be made law. “The government says it has not intended to destroy the private sector believing it will make the sector more sustainable by making it levy reasonable fees,” says Dr Dayanand. “It is being piloted and it will impact all hospitals. We will need all available beds. The national health will give healthcare access to everyone. How will we position for that? We are quite well adjusted and will be able to provide care to more patients in the NHI once our expansion has finished. Demand for hospital beds is great. Hospitals have

care

a shortage of beds and there aren’t enough to cater for the population.”

Comprehensive Medical Service Offerings

Our modern architecturally designed building creates an ambience of friendliness and warmth and certainly adds a new dimension to what we offer. Those principles will remain in the expansion”

The Daymed Medical Centre and Private Hospital is an ultra-modern, private and registered hospital which offers a “full and comprehensive range of medical services to all sectors of the community at affordable prices”. From its inception, a spirit of caring, dedication and community involvement has become its hallmark. “We’re well known for our quality and we are popular,” says Dr Dayanand. “Our modern architecturally designed building creates an ambience of friendliness and warmth and certainly adds a new dimension to what we offer. Those principles will remain in the expansion.” It is personal attention that sets Daymed Private Hospital apart from its competitors; Dr Dayanand is keen to maintain that. “What’s the secret to our success? Hard work, dedication and hands on management,” he concludes.

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Agriworks Expo

Ecoafribuild

3 1 J u ly 02 August 2014

20-23 August 2014

Potchefstroom South Africa

www.agriworks.co.za

4th Annual Enhancing Customer Experience, Loyalty and Retention in Telecoms Radisson Blu Hotel Sandton Johannesburg South Africa

04-05 August 2014 www.fextons.com

African Farmers Workshop & Expo

CNR Johannesburg South Africa

www.tradefairdates.com/EcoAfribuild-M9217/Johannesburg.html

My Business Expo

Boardwalk Convention Centre Port Elizabeth South Africa

21 August 2014 www.mybizexpo.co.za

Electra Mining Expo Nasrec Expo Centre Johannesburg South Africa

15-19 September 2014

JHB Expo Centre Johannesburg South Africa

www.electramining.co.za

12-14 August 2014

Cloud and Virtualisation Africa Summit 2014

www.africanfarmers.co.za

The Maslow Hotel Johannesburg South Africa

13-14 August 2014

www.events-africa.com/cloudvirtualisation-summit-africa-2014events-africa.html

www.cape-construction.co.za

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Tech4Africa

Focus Rooms Sunninghill, Sandton Gauteng Johannesburg

0 9 - 1 0 Oc t o b e r 2 0 1 4 www.tech4africa.com

Africa Oil & Gas Expo Sandton Convention Centre Johannesburg South Africa

0 9 - 1 0 Oc t o b e r 2 0 1 4 www.africaoilexpo.com

4th Mining Business and Investment Conference (MBI) Safari Park Hotel Nairobi Kenya

1 6 - 1 7 Oc t o b e r 2 0 1 4 www.mbieastafrica.com

Cape Construction Expo

International Convention Centre Cape Town South Africa

18-19 September 2014

www.aFRICAoutlookmag.com

21st Africa Oil Week: Africa Upstream

Cape Town International Convention Centre Cape Town South Africa

03-07 November 2014 www.petro21.com/events/?id=873

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