www.africanbusinessreview.co.za June 2015
LAKE TURKANA
SPECI R EP O R A L TS: Far
m and City, G Systemiza s & SCC T
AFRICA’S
LARGEST WIND FARM PROJECT
MOBICLICKS Driving Suzuki forwards
SOUTH AFRICAN CFO Awards
TOP10 South African Franchises
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EDITOR’S COMMENT
Egypt And South Africa Continue To Lead The Way A V E R Y W A R M W E L C O M E to the
June issue of African Business Review. Our cover story this month explores the success of Lake Turkana Wind Power, a renewable energy generator poised to deliver 300MW of renewable energy to Kenya’s national grid. Readers will also be interested to learn about the work of Juhayna: Egypt’s leading milk, juice and yogurt producer, which has been pioneering global business standards across its operations. We also examine how Farm and City has risen to the challenge of developing successfully despite the difficulties of the Zimbabwean market. This month’s front of book articles explore recent successes in South Africa, a country which continues to lead the continent. We will see how Mobiclicks delivered real mobile marketing results for its client Suzuki and how the 2015 CFO Awards (now in its second year) will be rewarding the efforts of a range of finance professionals; our Top 10 this month lists the Top 10 South African Franchises.
Enjoy the issue!
Nye Longman Editor nye.longman@wdmgroup.com 3
30 Sept - 1 Oct 2015 Sheraton Addis Ababa Ethiopia
AFRICA HOTEL INVESTMENT FORUM: CONNECT WITH THE LEADERS OF THE AFRICAN HOTEL INVESTMENT COMMUNITY
2015 marks the 5th anniversary of the Africa Hotel Investment Forum (AHIF). Sin its conception the event has bought together over 2000 key industry individuals sharing a common interest – to drive tourism and hotel investment across the A Continent. AHIF is the annual meeting place for the hotel industry leaders to do deals that shape the future of Africa’s tourism infrastructure. Here we explore th development of the content of the conference, the key topics and why this even been heralded as the conference of choice for the industry.
In a climate of accelerated growth, according to the World Travel & Tourism Council, 8.5% of Africa’s GDP and 6.9% of jobs are attributable to travel & tourism. The industry is forecast to grow across Africa at 4.9% per annum for the whole of the coming decade.
PLATINUM SPONSORS 2015
The quality of investors and lenders was the best we have seen in Africa. PATRICK FITZGIBBON, HILTON WORLDWIDE
Matthew Weihs, Managing Director, Bench Events, said: “I’m absolutely delighted to be back in Addis Ababa. The destination has many benefits including great air connectivity. In 2014 61% of the delegation came from African nations and I hope to see even more African key markets in attendance in 2015, alongside international companies exploring potential business oppportunities.”
BROUGHT TO YOU BY
www.africa-conference.com 150518-AHIF15-420x297-dps-v2.indd 1
OPENING ADDRESS H.E. PRIME MINISTER, HAILEMARIAM DESALEGN, FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA
DELEGATES ENJOYING THE MANY NETWORKING OPP
Following the recent advisory board me ahead of the conference in September, Africa Hotel Investment Forum (AHIF) p a list of ten priorities identified by the pa consisting of senior executives from sev global hotel chains, a number of major investors and a raft of expert advisors to hospitality industry. The recommendatio form a key component in this year’s con agenda and will look to explore: • Assessing regional stability - looking a ‘Controlled Risk’ • Creating a destination brand – why an • Developing the MICE industry • An airport update – and focus on con capacity • Focus on what products investors are for across Africa
N
nce s all African the he nt has
• Looking at road blocks to development. • Freeing up finance and debt. • Building confidence in a market in the eyes of the investor • Project pipeline and review of investment opportunities – what the long term looks like • Sourcing and vetting local partners – building trust and relationships in the African market • Understanding the value chain – who needs to be at the table at what stage? • Speeding up the development process – what are the ways and means to move construction along efficiently? If you are interested in speaking on any of the above topics please do get in touch with us. Multiple announcements in 2014 were made by: InterContinental Hotels Group, Wyndham Hotel Group, Accor, Starwood Hotels & Resorts, Best Western International Inc, Carlson Rezidor Hotel Group, Hilton Worldwide, Marriott International, Mangalis Hotel Group, Areen Hospitality, Worldhotels, Grant Thornton, DEG, Colliers International, Horwath, Jumeirah Group, Taj Group, HVS and Expedia. Of the 79 deals that were announced in 2014 - 12 deals happened onsite at AHIF and were announced during the course of the event showcasing the importance of this forum.
AHIF is the prime hotel investment conference on the African continent. If you want to be successful in the African hotel development and investment market, there is no other choice but to participate in this event. CHRISTIAN WALTER, PKF HOTELEXPERTS
One of the main objectives for the event this year will be to engage with African governments and identify their long-term strategic development plans developing productive public-private partnerships.
HARD TALK SESSION: UNDERSTANDING HOW THE DEAL BETWEEN MARRIOTT AND PROTEA HAS RESHAPED AFRICA’S INVESTMENT LANDSCAPE MODERATOR: Nick van Marken (left), Global Head – Advisory, Travel, Hospitality & Leisure, Deloitte IN CONVERSATION WITH: Arthur Gillis (right), Former CEO, Protea Hotels Alex Kyriakidis (centre), President & Managing Director Middle East & Africa, Marriott International
Another key element will be transport infrastructure as at present five major new airports are coming to Africa in Angola, Kenya, Nigeria, Rwanda and Senegal which will be a major driver of economic prosperity. Alongside a stimulating agenda, networking opportunities are high on the agenda and AHIF facilitates contact between investors and local players encouraging dialogue about new hotel projects. The event provides introductions to new contacts, enabling investors to walk through the whole investment process, building trust and addressing the culture change challenge.
This was probably one of the best and most productive conferences I have attended. The calibre of the attendees was great. NEIL GEORGE, STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
PORTUNITIES
eeting , the produced articipants veral hotel o Africa’s ons will nference
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nd how?
nnectivity/
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AHIF will discuss how investors can look outside of Africa, as well as locally for finance and how you can move from the point of signing an agreement to purchasing a property and opening for business.
AHIF FACTS…
520 87.2% 110 30 61%
ATTENDEES FROM 47 DIFFERENT COUNTRIES OF ATTENDEES SAID THEY WOULD ATTEND AHIF IN 2015 GLOBAL SPEAKERS FROM 25 COUNTRIES HARD HITTING, TOPICAL SESSIONS OF ATTENDEES ARE FROM AFRICAN NATIONS
SPEED NETWORKING SESSION MEET EVERYONE PARTICIPATING IN THE EVENT AND EXCHANGE BUSINESS CARDS
Registration is now open for the Africa Hotel Investment Forum 2015, 30 September – 1 October, Addis Ababa, Ethiopia. For further information about this premier event please visit the website:
www.africa-conference.com or contact: Matthew Weihs, Managing Director, Bench Events E: matthew.weihs@benchevents.com
21/05/2015 15:09
CONTENTS
Features TOP 10
South African Franchises
14 FINANCE The 2015 South African CFO Awards
MARKETING Marketing to the mobile continent
20
8 6
78 Suez Canal Container Terminal
30
Lake Turkana Wind Power
56
134
Giza Systems
Juhayna Food Industries
Company Profiles ENERGY
SUPPLY CHAIN
30 Lake Turkana Wind Power
78 Suez Canal Container Terminal
RETAIL 46 Farm and City
TECHNOLOGY 56 Giza Systems 68 Vodacom Business Africa
88 Nigerdock 116 Association: AFRAA 124 Air Botswana
FOOD 134 Juhayna Food Industries
46 Farm and City
7
MARKETING
Marketing to the Mobile Continent Africa produces unique conditions for mobile marketers; we look at how Mobiclicks delivered an effective mobile marketing solution for Suzuki Written by: Nye Longman 9
MARKETING AFRICA IS GROWING; in places this growth is stuttering, slowing, reversing, yet the continent continues to rise. Gaps in technology have forced businesses and entrepreneurs to find cost-effective innovations to market their goods and services. This is one of best examples of how people on this continent think creatively to find sometimes unusual solutions. Mobile marketing is an avenue that is being taken increasingly seriously in Africa by some of the biggest players in the world who are recognising the potential for mobile to penetrate where television, radio, and desktop marketing fail.
10
June 2015
State of Africa In 2014, independent IT research firm Gartner estimated that the global market for mobile marketing will reach just over $40 billion by 2017 which will be fuelled in no small part through increased uptake by developing countries. A PwC report estimated that the global digital advertising market is set to reach $185.4 billion by the same year. The Gartner report also noted that revenue from African telecoms companies would only make up a very small fraction of this figure, no more than $1.5 billion. While this small figure reveals that Africa’s mobile marketing sector
MARKETING TO THE MOBILE CONTINENT
will remain comparatively small, this is not all that marketers should take home however. Aside from the obviously higher purchasing power of the dollar across the continent, a big spend does not always generate proportionally big revenues. Exploring the success of Mobiclicks, it becomes clear that quality and innovation will become important deciding factors, even when the availability of cash becomes less of an issue. Mobiclicks: driving Suzuki onwards Having invested time, effort and capital into increasing its brand awareness in South Africa, Suzuki
was pleased with the number of people its social media channels had reached (a lot of companies would certainly envy an average of 13 million impressions per month). But one thing was becoming increasingly clear: these impressions simply weren’t converting into sales. While maintaining a strong social presence is vital for success, selling products will always be the end goal. This was when in 2014 Suzuki enlisted the support of Mobiclicks, one of the leading mobile media companies in the country, which has implemented various campaigns for some of the nation’s largest companies including KFC, Shoprite, MTN, and Walt Disney, amongst many others. Under the seasoned supervision of Mobiclicks, Suzuki went off the beaten track and used mobile as
‘As Suzuki has proved, combining a social media presence with a strong, action-based mobile campaign can be a strong driver for future success’ 11
MARKETING
MobiClicks worked with the advertising agency, PenQuin to help promote brand awareness for Suzuki South Africa
“Using Mobiclicks for Suzuki resulted in an average click through rate (CTR) of 1.2% and 2.35%, this is higher than any of the other online campaigns that we’ve run in the past” – Veronica Wainstein, at PenQuin, Suzuki’s marketing agency
12
June 2015
MARKETING TO THE MOBILE CONTINENT
a platform to drive sales of their automobiles. Utilising the diversity of the mobile medium the company had several key aims which included further increasing awareness of the Suzuki brand, providing a platform for two-way communication with the target audience, and providing for the needs of its customers. The mobile site emphasised immediate action, enabling potential buyers to book a test drive; this positive call to action enabled Suzuki to generate real leads and also provided a platform for an exchange of information with customers. Due in no small part to its mobile marketing campaign with Mobiclicks, Suzuki increased its brand awareness across South Africa to the extent that it is now the one of the country’s fastest growing automotive brands. Furthermore, it has proved that both brand awareness and a calculated marketing strategy can literally pay off, as it reported that year-on-year sales for 2014 increased by over 30 percent. Veronica Wainstein, at PenQuin, Suzuki’s marketing agency said: “Using Mobiclicks for Suzuki resulted in an average click through rate (CTR) of 1.2% and 2.35%, this
Driving onward
is higher than any of the other online campaigns that we’ve run in the past.” Mobile phone use is set to expand almost exponentially in coming years as economies grow, infrastructure improves, and as a the price of technology continues to come down. A recent study by eMarketer highlighted the top 25 countries for smartphone growth in 2014 and amongst these were three African countries: South Africa, Egypt, and Nigeria. Furthermore, it has recently been predicted that that internet use on smartphones is set to increase 20-fold on the continent. As Suzuki has proved, combining a social media presence with a strong, actionbased mobile campaign can be a strong driver for future success. 13
FINANCE
The 2015 South African CFO Awards The 2015 South African CFO Awards recognises efforts made in the past year to meet a range of financial challenges W r i t t e n b y : N y e Lo n g m a n
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FINANCE A HOST OF South Africa’s most influential finance professionals converged on Johannesberg for the second annual CFO Awards Ceremony at the Summer Place on the 14th of May. After a tough contest, the CFO of the year Award went to Deon Viljoen of Alexander Forbes. The event recognised the hard work, achievements, and vision of the country’s CFOs over the past year, and additionally awarded several other important endeavours. The ceremony, sponsored by KMPG, recognises the broadest possible range of business successes, from listed companies to parastatals, from government institutions to large corporations. Furthermore, the th
“The ceremony, sponsored by KMPG, seeks to recognise the broadest possible range of business successes, from listed companies to parastatals; from government institutions to large corporations”
Hosted by the Summer Palace, Hyde Park, Johannesberg
16
June 2015
2015 SOUTH AFRICAN CFO AWARDS
Alexander Forbes CFO, Deon Viljoen scooped the 2015 CFO of the Year Award event did not only award the CFO of the Year: there were plenty of other prizes available, which included awards for empowerment, strategy, compliance, and technology. The Award for CFO of the Year recognises: “financial leadership and outstanding performance over a number of years� alongside judges scoring each candidate based on their skills, attitude, and results in the execution of their duties. There follows a summary of a selection of the other endeavours and personal qualities the awards ceremony has recognised: Young CFO of the Year Brett Tromp, Discovery Health This Award is for candidates ages 40 and below; they must have shown great leadership and responsibility, embodying an exemplary work ethic that has helped
them quickly climb the ladder. Public CFO of the Year Anoj Singh, Transnet The Award for Excellence in Government Finance recognises contributions that exemplify outstanding management in public endeavours. Strategy Execution Award, Anoj Singh, Transnet The Strategy Execution Award acknowledges exceptional efforts made successfully adapt in the face of changing conditions, whether internal or external. Transformation and Empowerment Award Imran Soomra, Oceana The winner of this Award has shown remarkable achievements creating jobs and empowering 17
FINANCE people, particularly towards the Broad Based Black Economic Empowerment (B-BBEE) initiative.
PANEL OF JUDGES Compliance and Governance Award Cobus Grove, Digicore The Compliance and Governance Award recognises a particular CFO who has helped the business reach its targets in an ethical and transparent way, striving to maintain a faultless compliance record.
ASHER BOHBOT CEO of EOH Consulting
EDWARD KIESWETTER Group Chief Executive of Alexander Forbes
Finance Transformation Award Bongani Nqwababa, Sasol The winner of this Award has been able to completely rethink and reform the financial landscape of their company, taking into consideration the requirements of stakeholders and management colleagues.
VICTOR SEKESE
Moving into Africa Award Greg Davis, Standard Bank The Moving into Africa award recognises the unique effort made by a CFO that has adapted his team to work within the cultural, legal and financial constraints of the developing continent.
DAVID FINE
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June 2015
CEO of SizweNtsalubaGobodo
MFUNDO NKUHLU COO of Nedbank
Managing Director of McKinsey South Africa
CAREL SMIT Executive Committee member at KPMG
2015 SOUTH AFRICAN CFO AWARDS
RIAD GYDIEN Vice President - Africa, Middle East, Pakistan & Turkey of SAS
DELPHINE MAÏDOU CEO of Allianz GCS Africa
JONATHAN LANG Practice Partner and Head of Africa of Bowman Gilfillan Africa Group
CHRISTO ELS Partner of Webber Wentzel
BEN MARX Vice-Chairperson Accountancy Department of Faculty of Economic and Financial Sciences of the University of Johannesburg
CLAUDELLE VON ECK CEO of The Institute of Internal Auditors South Africa
ROB OTTY Managing Director of Norton Rose Fulbright South Africa
Finance and Technology Award Colin Brown, Super Group The winner of the Finance and Technology Award has successfully implemented technological solutions that have added both value and efficiency to his company. High Performance Team Award Brett Tromp, Discovery Health The winner of the High Performance Team Award has not only developed an efficient, customer focused team, but has taken into account its professional and personal development. Judges comprising this year’s panel have been recruited from the ranks of some of the country’s most important C-level officers. The panel included Carel Smit, Executive Committee member at KPMG, Rob Otty Managing Director of Norton Rose Fulbright South Africa, and Mfundo Nkuhlu, COO of Nedbank. The challenges faced by South Africa’s economy were chiefly caused by a fall in trade with the US and Europe, in addition to labour force issues; this year’s CFOs have risen to the challenge of maintaining growth and financial focus under these conditions. 19
TOP 10
The Top 10
South African Franchises We celebrate ten companies that go the extra mile to keep their employees motivated, satisfied and appreciated
W r i t t e n b y: N Y E LO N G M A N
South Africa has an established middle class that is set to keep growng; this group provides the country with both canny, aspiring entrepreneurs and a discerning, brand conscious consumer base.
21
TOP 10
OFFICE WORLD (cost available on application)
Established in 2007, relative newcomer Office World provides a variety of office products crucial to any successful business. Alongside stationary, furniture, tech and interiors the company offers specialised support to a variety of sectors including health, financial, and education. The franchise currently has 11 outlets across the country and is always looking to extend its service coverage.
09
CARTRIDGE HYPER (770,000 Rand)
www.officeworld.co.za
10
Cartridge Hyper was founded as a single outlet in 2003, supplying both individuals and small businesses with ink cartridges and toner products. Since then the company has followed the growth of South Africa’s computer market and has now grown to 14 stores. Franchisee staff and management will work for two weeks in an established Hyper store in order to ensure that they are well versed in the products and processes of the company. www.cartridgehyper.co.za
22
June 2015
THE TOP 10 SOUTH AFRICAN FRANCHISES
HARVEY’S TRAVEL SOUTH AFRICA (cost available on application)
Simply put, Harvey’s World Travel Group is responsible for helping cstomers find their holiday of a lifetime. This franchise should therefore attract people that are not only experienced in the travel and tourism industry, but those who also have a well fostered talent for serving and helping people realise their dreams. The group is a joint venture between BidTravel (part of the Bidvest Group) and Stella Group based in Australia and boasts 430 agencies across the southern hemisphere. www.harveyworld.co.za
08
23
TOP 10
VERIMARK (400-600,000 Rand)
Verimark brings thousands of quality products to the South African market, with top brands from house and cookware, to DIY, Automotive and Fitness. The company has over 2,000 chain stores, making it a very well-known brand, supported by over 80 franchise stores. Those looking to invest will find themselves in good stead, as Verimark shares are often top performers on the JSE. www.verimark.co.za
07 24
June 2015
THE TOP 10 SOUTH AFRICAN FRANCHISES
OLD FASHIONED FISH AND CHIPS (630,000 Rand)
Old Fashioned Fish and Chips is South Africa’s leading and most well-known fish and chips retailer; it is one of the country’s fastest growing franchises with 155 stores across the country and new outlets opening every week. Old Fashioned gives its customers the choice between eat in or take away and has a range of tasty fried treats.
05
www.fishandchips.co.za
THE DAILY SUN (100-200,000 Rand)
06
The Daily Sun is one of South Africa’s most popular daily newspapers, with a circulation of almost 300,000 in addition to an estimated daily readership of over 5 million. Furthermore, estimates show that at least 70,000 unique visitors interact with the publication’s mobile site each day; these figures show an incredibly strong brand with much potential for growth. www.dailysun.co.za 25
TOP 10
AUTO MAGIC (2.5 million Rand)
Founded in the mid-1990s, Auto Magic built up its non-structural vehicle repair business and brought it to franchise in 2001. Since then it has grown to include 34 stores across South Africa and has formed partnerships with leading companies including Hyundai, Old Mutual, and Isuzu which gives the company fantastic access to insurance claim customers. Auto Magic offers an extensive range of repair and replacement services which are complemented by its polishing and paint matching capabilities. www.automagic.co.za
04 26
June 2015
03
SWEETS FROM HEAVEN (300-800,000 Rand)
Sweets from Heaven is a subsidiary franchise of the Heaven Group with the majority of its 100 stores based in South Africa. What sets Heaven stores apart from competing sweetshops is the astounding level of detail paid to the presentation of each store, as well as the sheer range of colourful and appealing products they have available. Expect to see kids dragging their parents to a Sweets from Heaven store as soon as they set eyes on it. www.theheavengroup.com
THE TOP 10 SOUTH AFRICAN FRANCHISES
SPAR (5-10 million Rand depending on outlet size)
Spar began life over 80 years ago in the Netherlands and since then has grown to become a global retailer. The company has around 875 stores in South Africa and is therefore a well-known brand for consumers; a franchiser can choose from a variety of store formats from a small corner shop all the way up to a megastore. Its simple motto of “Good for you� can therefore be easily applied to customers and franchisers alike. www.spar.co.za
02 27
TOP 10
01 MUGG AND BEAN (2.8 million Rand)
The homespun story of Mugg and Bean is now legendary; its founder Ben Filmalter and his wife were inspired by the spirit of a South-Side Chicago coffee house and saw the potential in bringing it home to South Africa. The coffee shop expanded from its first outlet in 1996 across South Africa and into Namibia, Botswana, UAE, and Saudi Arabia, and now has a total of 99 stores and franchises. Alongside its now famous bottomless coffee, Mugg and Bean offers generous portions from a delicious range of hot and cold food. www.themugg.com
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June 2015
THE TOP 10 SOUTH AFRICAN FRANCHISES
29
A fair wind over Lake Turkana Lake Turkana Wind Power (LTWP), after nine long years of negotiation and preparation, is now an active project that will be delivering 300 megawatts of power to the Kenyan grid by the end of 2016 Written by: John O’Hanlon Produced by: Kiron Chavda
31
LAKE TURKANA WIND POWER
T
he Lake Turkana Wind Power Project (LTWP) aims to provide 300MW of reliable, low cost wind power to the Kenya national grid, equivalent to approximately 20 percent of the current installed electricity generating capacity. The Project is of significant strategic benefit to Kenya, and at Ksh 70 billion (€600 million) will be the largest single private investment in Kenya’s history. A barren moonscape, pitted with volcanic craters, arid and inhospitable, and populated by warring tribespeople. That is one view of northern Kenya, and in a sense it is true: but a dualistic world view that only sees ‘challenges’ misses the point entirely. The counties of Turkana and Marsabit have extraordinary qualities. Among these is their wildlife, for example it was the prospect of catching six-foot Nile perch weighing nearly 390 stone that attracted entrepreneur Willem Dolleman to the shores of Lake Turkana in the late 1980s. His main problem was the relentless wind that would take control of his boat – no tent that he could obtain could withstand the force of those winds, and he often had to give in and sleep in his car.
80 metres tall 32
June 2015
ENERGY
The potential of harnessing those forces for electricity generation was not lost on Dolleman and his friend Carlo van Wageningen, but at that time wind power was still an embryonic technology, and the low cost of oil put it out of contention. Wind power development required subsidies, and none would be forthcoming in Africa. It was not until 2005, when oil prices rose above £50 per barrel for the first time, that they, together with Chris Staubo decided it was time to take another look. The ‘founding fathers’ of LTWP called up Harry Wassenaar and Kasper Paardekooper of KP & P, a company with a history of developing and operating wind power projects, to bring some specialist expertise to the project. They were highly sceptical. Wassenaar, an old school friend of Dolleman, was however persuaded to come for a holiday. “He fell in love with the place as soon as he saw it,” says van Wageningen. “The wind itself convinced him!” With the help of Henk Hutting another veteran of wind power, if that is the right word in such a new industry, who confirmed the reliability of the wind flow in the area, LTWP was set up in Kenya under the ownership of KP & P BV, and the real work began. Early this year LTWP chairman Mugo Kibati accepted the Project Finance International
Key Personnel
Carlo van Wageningen Director Carlo was born in Rome (Italy) on 7th January 1957. He lived in North and West Africa with his parents from 1958 to 1969, in Nigeria, Libya, Ghana and Sierra Leone. He then went back to Rome to finish his higher education. From 1976 to 1988, Carlo worked for the Food and Agricultural Organization (FAO) of the United Nations and World Food Program. He was stationed in Rome (Italy), Niamey (Niger), Cotonou (Benin) and Harare (Zimbabwe) in various capacities. He ended his career in the United Nations as WFP Assistant Representative.
w w w. l t w p . c o . k e
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LAKE TURKANA WIND POWER
What can a proven track record do for you? With 35 years of experience in building wind power plants, +67 GW (54,000 wind turbines) of installed wind power across 73 countries, 52 per cent more installed capacity than the closest competitor* and more than 26,000 wind turbines globally under 24/7 surveillance, our track record speaks for itself. Based on this vast experience and accumulated knowledge, we continuously support customers and policy makers throughout the world. As your trusted advisor, Vestas can help you make the most of your wind power potential.
* as of December 2013
+67 GW 35 years 73 countries +54,000 wind turbines 34
June 2015
LAKE TURKANA WIND POWER (PFI) African Renewable Deal Award 2014 in recognition of the way the project finance was put together up to final financial close in December 2014 – it was considered the best project finance structure achieved in the region over the last couple of decades. “The MoU between Willem Dolleman, Carlo van Wageningen and Chris Staubo was signed in 2005 so it took nine years for us to complete the development phase,” says van Wageningen. That was three years longer than the founding fathers had hoped for, but explicable considering the complexity of the project and the painstaking way in which project and political risks perceived by lenders had to be mitigated, No collateral other than its own potential
ENERGY
The Lake Turkana Wind Power Project is the largest single private investment in Kenya’s history LTWP water storage and accommodation
w w w. l t w p . c o . k e
35
LAKE TURKANA WIND POWER
Engineering Africa... Civicon Group is proud to be associated with the Lake Turkana Wind Power Project Over the last 40 years, Civicon Group Engineering has established itself as the regions leading Mechanical Engineering, Civil Engineering and Contracting firm in East and Central Africa. The company has a dynamic management team with over 30 engineers and technicians, a staff base of 2000, a large asset base of 5 fully equipped workshops across Eastern Africa and over 350 pieces of heavy equipment. The group also provides out-of gauge Logistics, Cranage and Erection services.
Select Projects
Mechanical Engineering: Greenfield Titanium mine in Kenya. The scope included: Structural, Mechanical, Plate work and Piping (SMPP). Civil Engineering: Road construction, maintenance of 113 KM, Yei Juba Road, South Sudan. Logistics: Transport of brewery vessels, Uganda. Cranage & Erection: Development of Heavy Fuel Oil Power Plants across East Africa. Mining: Turnkey projects to develop Greenfield Titanium Mine (Kenya) and Greenfield Gold Mines (DRC). Oil and Gas: Building of well pads and associated infrastructure for leading Oil & Gas E&P companies. Demand for Engineering continues to grow, driven by: • Development of Power generation and transmission facilities in the region. • Investment by regional governments to develop new roads and maintain Existing ones. • Private sector’s Investment in oil storage facilities across the region and Exploration for oil and gas. Development of mining in the DRC and Tanzania
36
• MECHANICAL ENGINEERING • CIVIL ENGINEERING • SPECIALISED TRANSPORT • CRANEAGE & ERECTION
KENYA • TANZANIA • SOUTH SUDAN • RWANDA • DRC • MOZAMBIQUE J u n e 2•0UGANDA 15
LAKE TURKANA WIND POWER was offered so the wind farm had to secure sound backing. Of course it had the support of the government of Kenya from day one, but given that there was only one customer for its product, the government owned Kenya Power and Lighting Company (KPLC), political risk was a considerable factor. Initially the World Bank had offered to cover this but withdrew after a lengthy due diligence process. This meant that a different structure had to be put in place, and that was not so easy. “Where you have a single client, lenders normally request that the offtaker issue a letter of credit in favour of the lenders equivalent to six months’ forecast invoicing,” says van Wageningen. “At 300 MW the monthly bill to KPLC would be around €9 million, but €54 million is a lot more than they had ever had to find at one time and it would have been difficult for them to obtain that kind of security. We had to be inventive and come up with a different structure that would satisfy the lenders.” This was eventually achieved through a temporary levy on the tariffs, paid into an escrow account held by the government but in favour of the lenders. Negotiations were held right up to cabinet level, however this is a project of strategic national importance and all parties wanted it to go ahead. Nevertheless it was with some relief that the partial risk guarantee (PRG) was signed by Mr Kibati and the leaders of the Standard Bank, the National Treasury and the Kenya Electricity Transmission
ENERGY
Road Construction by Civicon w w w. l t w p . c o . k e
37
LAKE TURKANA WIND POWER
Ketraco is a key partner in the Lake Turkana project. Building a 428 kilometre transmission line to power the 300MW wind farm
38
June 2015
Company (Ketraco) in December last year. Ketraco is a key partner since it is tasked with building a 428 kilometre transmission line to evacuate the power output from the 300MW wind farm. This EPC contract is worth €142 million, and is being carried out by the Spanish company Isolux Corsán. The line will link Loiyangalani, close to the Lake, to the town of Suswa, on the outskirts of the capital, Nairobi. An additional benefit is that various geothermal plants that will be located along its route will be able to upload their output in the future. Though this contract is not directly overseen by LTWP it is classed as an ‘associated’ contract. “We have to make sure we complete the two projects in a harmonised manner, to be ready when we are ready to deliver power from our plant. They have been working since August 2014, and should complete by July 2016 ready for us to come on line with the first 90 MW in October,” says van Wageningen. The transmission line is one of seven EPC contracts, the remaining ones all directly owned by LTWP. Following financial close work started on all
ENERGY
fronts in January and the site became a hive of activity. Perhaps the most important is the construction, or rather the upgrade of a 210 kilometre stretch of road from the A2 highway at Laisamis. This is being surfaced to take the site traffic, and is currently proceeding to schedule. The same is true of the work on the site itself, where 150 housing units are being built for the staff as well as admin offices and a fully equipped maintenance workshop. “As the turbines will be at full production all of the time they will need servicing twice as often as similar units sited in Europe for example,” he explains. “The workshops are designed to accommodate full maintenance of the turbines including refurbishment of gearboxes if that is necessary.” The usual resource of sending the nacelles to a Vestas depot is just not available.
Video - Lake Turkana wind power project named African renewables deal of the year 2014 in London
““We have to make sure we complete the two projects in a harmonised manner, to be ready when we are ready to deliver power from our plant.” – Carlo van Wageningen, Director
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“As the turbines will be at full production all of the time they will need servicing twice as often as similar units sited in Europe” – Carlo van Wageningen
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kilometres of internal roads are being built to reach the turbines on the estate
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Groundworks have also started for the substation that will collect the power from the 365 turbines and feed it to Ketraco’s new transmission line, and the foundations of the turbines themselves. As a preliminary, soil survey drilling is being conducted at each microsite to make sure it can take the 43 metre masts supporting the Vestas V52-850 kW turbines. “We planned it so that when the turbines start coming into Mombasa they are loaded on trucks and driven straight to the site, avoiding double handling at a warehouse.” Delivery will be on a rolling programme, with around 30 turbines arriving each month. Additionally, 110 kilometres of internal roads are being built to reach the turbines on the 40,000 acres estate, held on a 99 year lease from the government. A word about the siting concept would be appropriate here. Henk Hutting quickly corrected his new colleagues, who had thought the wind a local thermal effect, once they called him in. He explained how two opposing, low level seasonal winds affecting East Africa, the Kaskazi and the Kuzi, run for six months from north east to south west and for six months in a south east to north west direction. Split in one case by the great mountains of Kilimanjaro and Kenya and in the other by the Ethiopian plateau, in each case a portion is directed northward up the Turkana corridor by the constant low pressure of the Sahara. Accelerated by the venturi effect of the hills to the north of Meru, the wind to
ENERGY
the south east of the lake averages 12 metres per second or around 27 miles per hour. For the wind turbine designers, the problem was if anything that the site had too much wind! Now that it is under construction the wind farm seems certain to be delivering low-cost electricity to the Kenyan national grid by the end of next year. At full production its contribution will be equivalent to nearly 20 percent of the currently installed generating capacity of Kenya. “We don’t claim that wind power can be considered baseload (always available), but in fact we achieve good enough load factor, based on eight years of wind measurement on site. And because the transmission line brings power to this region for the first time, it will transform the lives of the local people. What the effect of development will be upon local conflict, which is rife, remains to be seen, but the more
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The African continent contains many of the fastest growing emerging markets in the world today. In order to fuel this growth, the public private partnership model is being exploited throughout Africa to build the infrastructure needed to meet growing commercial demand. The Lake Turkana Wind Power Project is emblematic of the large and complex infrastructure projects that are now being pursued in SubSaharan Africa. In fact, in Kenya, this project is just the tip of the iceberg. Increasing modernisation efforts in the public and private sectors are making the difference. Bankable projects are easier to achieve in the face of better governance practices, lower political
risk, trade liberalisation and improved legal enforcement and regulatory regimes. With the availability of political risk insurance products, the implicit cover provided for by development financial institutions and guarantees offered by local governments, political risk in Africa can be managed effectively. In the legal arena, agreements are negotiated with detailed provisions providing for changes in the law or taxation schemes and the overall scrutiny of documents is significantly higher. As a result, opportunities are able to be valued more realistically which enhances the availability of creative financing options. In addition, the risk appetite of large multinational companies has increased as
evidenced by the growing number that have set up operations in Sub-Saharan Africa recently. Increased competition in turn is providing a more even playing field for newcomers to enter the market. As the Lake Turkana Wind Power Project shows, creative African solutions to African problems are paving the way for transformative infrastructure development. The opportunities in Sub-Saharan Africa are well-known to many. Those who understand the commercial challenges will reap the rewards of the PPP projects that will change the face of business in Africa.
Amyn Mussa, Editor Amyn Mussa is a partner at Anjarwalla & Khanna and head of the firm’s Energy & Infrastructure Group. Amyn is also Co-Head of the Energy & Infrastructure Sector Group of ALN, an association of top-tier independent law firms across Africa.
www.chasebankkenya.co.ke
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ENERGY
enterprising are already seeing this as a chance to establish trading businesses, commercial fishing, tanneries and other sources of employment and revenue. “As soon as the substation goes live we will be electrifying the largest towns in the area,” promises van Wageningen. The communities of Loiyangalani, Kargi, South Horr and Laisamis, will have access to light, refrigeration and other enabling technologies. Since the transmission line will carry high speed optic fibre as well, they will get better connectivity than many people in rural Europe, he points out. The money that will come in to this neglected part of Kenya will surely make a difference. Because this is green energy the United Nations registered LTWP under a mechanism that will allow the project to generate carbon credits which will generate some $4million to develop
“As soon as the substation goes live we will be electrifying the largest towns in the area” – Carlo van Wageningen
Progress on the village construction for staff lodgings
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LAKE TURKANA WIND POWER
500k The amount the Winds of Change Foundation is to be seeded with each year. 44
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communities around the wind farm. Additionally the company has set up a CSR programme, implemented by the Winds of Change Foundation (a wholly owned subsidiary of LTWP) that funds health programmes and water, sanitation and educational initiatives. Seeded with â‚Ź500,000 a year, the foundation will be raising further funds to support business development. “Following extensive consultation with the communities to identify their needs we have created a 20
ENERGY
year development plan for the foundation.� The communities have been asked to participate and identify their needs.� The 20 year plan will be delivered in five year segments, he says. To have secured the largest ever private-sector financing in Kenya with no fewer than ten European and African development finance institutions providing debt and equity is a great achievement. The project will change the lives of millions of Kenyans, and boost the national economy.
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Farm & City Centre
Nourishing Zimbabwean Agriculture Written by: John O’Hanlon Produced by: Kiron Chavda
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FA R M & C I T Y C E N T R E
Farm & City Centre is the goto business for advice, training and professional support for Zimbabwe’s farmers, both arable and livestock, as well as providing them with the products they need to stay productive A comprehensive range
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griculture is the backbone of the Zimbabwean economy. According to the Ministry of Agriculture “it provides livelihoods to 80 percent of the population and accounts for 23 percent of formal employment. The sector contributes 14 to 18.5 percent to the Gross Domestic Product (GDP)�. Far more than simply a retail and wholesale outlet, though it fulfils these functions through its network of 38 stores, centred on the 3,300 square metre flagship store at 4th Street Harare, Farm & City is a strategic player with its roots in a co-operative business founded in 1908. It sells everything a farmer needs, including implements, seed, chemicals, fertilizers, tools, day old chicks, veterinary products, animal feeds, protective clothing, fencing and building materials. Peggy Rambanapasi, the Managing Director,
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says ‘there is an urgent need to instil professional attitudes throughout the sector and educate farmers to be entrepreneurs and strategic thinkers. “Farming is a business, not a hobby or something to do in one’s retirement,” insists Peggy. She should know – she holds an MBA from Nottingham Trent University in the UK, and runs two businesses (Farm & City has a subsidiary Vetco supplying veterinary products to livestock farmers) that, while they might be challenges for the business to expand in the current climate, Farm & City is geared up for growth. The greatest challenge at the moment is to ensure that farmers achieve or maximise the yield potential of the seed they are using. “Our business is to ensure that people get what they paid for – which is a quality product and the right yields. Therefore a key role to achieve this is education. Retailers in this country sell what they can. As a result there are small hardware stores, food outlets, general stores getting into the business of selling seed and other agro inputs to farmers. With the best will in the world they can’t do more than sell the seed though. Nobody checks where that seed is going to be grown, what sort of soil is there, what climatic conditions exist, what diseases are endemic locally, let alone the quality of the seed itself.” Farm & City, she insists, must take a cradleto-grave approach to its customers. “We deal with all the people in the value chain from the seed suppliers and fertiliser and crop chemicals
Key Personnel
Peggy Rambanapasi Managing Director Peggy Rambanapasi commenced her career with CFI Holdings Ltd as the Managing Director of the Town and Country supermarket chain in October 2008, before being promoted to the position of Divisional Managing Director for CFI Retail in June 2009. She holds an MBA from Nottingham Trent University in the UK
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A corner of the tools department
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manufacturers to the end user, and we can put these people together.” To pinch a slogan from Seed Co, it is not simply about creating a better product for the farmer but equally about trying to create a better farmer for the product! Major suppliers like Seed Co, the largest seed producer in Africa, founded in Zimbabwe 75 years ago, and the first company in the world to hybridise maize seed commercially, form an important part of the food supply chain. Together with such
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suppliers, the Ministry itself and its agencies such as Agritex, Farm & City needs to work to provide technical and advisory services. It is a role Farm & City has embarked on, though there is much work to do at grass roots level. “We are the interface with the farmers after all, and lately we have been trying to promote the idea of partnership between the stakeholders, public and private. Seed companies do a great job on seed testing and quality control, and bring technical advice to
Farmers’ essentials
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FA R M & C I T Y C E N T R E
1921
Ignazio Messina & C.
THE ITALIAN LINE
1994
Ignazio Messina & C. Pty Ltd
SHIPPING AGENCY IN SOUTH AFRICA
Importer, Manufacturer and Distributor of Fertilizer
sales@fsg.co.zw
at affordable prices We distribute our Fertilizers nationwide through Farm and City Centre Depots
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Esb3 For treatment of coccidiosis in poultry
YOUR WORKER’S PROTECTION IS OUR BUSINESS Industrial Protective Clothing, Footwear, Rainwear & Accessories. Garments made in Poly Cotton and Cotton Drill fabrics.
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Broad spectrum antibiotic for bacterial infection in poultry
sales@granchem.com
+ 263 477 0814/6
All garments are made in Zimbabwe. T 00263 4 750753 E sales@tselentisgroup.co.zw enquiries@tselentisgroup.co.zw www.tselentisgroup.com N.Tselentis (PVT) LTD • 46 Kaguvi Street • Harare • Zimbabwe
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26 Cripps Road • Graniteside • Harare • Zimbabwe
June 2015
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the ‘last mile’ of the supply chain, there is more that could be done. Farm & City’s co-operative ethic is impartial and has offered space to Agritex extension services and Zimbabwe Farmers’ Union in their stores to provide advice to the end users without pushing any particular product or brand. “The important thing is to increase the amount of training and advice available to farmers in upcountry areas. For me, ours is a strictly B2B model. Farmers are business owners and entrepreneurs, not simply consumers, and specialists too because farming is a scientific process. If our customers do not do well we will not either!” A more effective strategy would be to put all the effort into a smaller acreage, using the best seed, fertiliser, weed and pest control to realise its full potential. Counter intuitive maybe, but sound business. Basically farmers must work smart and then increase their hectarage over time as resources permit. The focus from the country’s agricultural authorities on mechanisation and irrigation actually will support this strategy in terms of both working smart and trying to alleviate climatic challenges. The same principles apply to livestock farming. There is an equal need to
Cliff Mukumba Operations Manager
“Farmers are business owners and entrepreneurs, not simply consumers – and specialists too because farming is a scientific process” - Peggy Rambanapasi w w w. f a r m a n d c i t y. c o . z w
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Barbecues
Top names
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upskill the cattle farmers and make them more productive but to do that they need access to advice, support, and appropriate veterinary products, feeds and supplements. Accordingly Vetco is expanding its range of products and bringing in expertise and affordable products from such companies as Dopharma of the Netherlands, Ashish Life Sciences of India and Surgipharma Laboratories of Pakistan. “I tend to think that on the veterinary side people are more open to information. The vets are doing a good job in forming relationships with the farmers and getting the information to them.” But there’s still a need to focus on husbandry and pasturage, she says. “You need to be able to plan, and see that livestock is well fed through seasonal drought and protected from disease in the wet periods.” While in the past you could set your watch by the rains in
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Zimbabwe and the greater region, both crops and livestock are now affected by a much more erratic weather patterns, she adds. In line with the scientific approach Farm & City is advocating for its customers, the company is moving to become a knowledge-based company. “Our company’s ICT has not progressed as much as we would like, so we now need to leapfrog!” Peggy Rambanapasi proclaims. Farm & City brought in an Indian specialist company, ITree Dynamics, to implement new business intelligence platforms that will equip them for the future. “If we can capture transaction data, then dice and slice that data in more ways, we can determine the buying patterns of the customers and look into their baskets so we can meet whatever challenges they have and offer the right product at the right time.” The investment will be good for Farm & City’s stock control and capital management too, as it will enable inventory levels to be cut, and a more flexible approach to ordering and fulfilment. And it is an essential preparation for another strategy, a move towards online trading. “We need to get our farmers to be more efficient, to understand the elements that will allow them to be productive, and to get a business head on them. Where and when farming is a productive business it contributes to taxes, employment, and allows for the growth of downstream processing industry. That is a passion for our company – value addition, training and partnership!”
Company Information INDUSTRY
Retail HEADQUARTERS
Zimbabwe FOUNDED
1908 EMPLOYEES
367 REVENUE
Not disclosed PRODUCTS/ SERVICES
Agricultural supplies
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Giza Systems
Integrating Growth A blue ocean approach to industry specific technological solutions Written by: Nye Longman Produced by: Kevin Holmes
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GIZA SYSTEMS
G
iza Systems has been operating successfully since 1974 and has grown to be a provider of niche systems integration solutions across Africa and the Middle East, implementing projects as far afield as Russia and Latin America. Effectively combining decades of experience and market-breaking foresight, the company has struck a seemingly magical formula for growth in all directions: from its revenues, to its capabilities; from its employees to local communities. Operations The company provides a range of industry specific technology solutions to asset-intensive industries which include telecoms, utilities,
Giza Systems Headquaters
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TECHNOLOGY
oil and gas, real estate, transportation, and manufacturing. Although its remit generally covers large scale, long term projects, it also provides operations and maintenance services as part of its portfolio. Chairman and CEO of Giza Systems, Shehab ElNawawi has been shrewdly monitoring systems trends, he said: “Over the past five years, developers in the power sector, which is traditionally the field of engineering, are looking at using ICT to effectively manage demand, and that needs our technology.” His observation can be seen in the simple but extremely effective blue ocean strategy that the company adopts across all of its operations; it is certainly one that has allowed Giza Systems to expand across into
“Over the past five years, developers in the power sector, which is traditionally the field of engineering, are looking at using ICT to effectively manage demand, and that needs our technology.” - Shehab ElNawawi, Chairman and CEO of Giza Systems,
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GIZA SYSTEMS
Giza Systems power project
“On our commercial side we are developing a portfolio of IOT products – our long standing partnerships mean that we have a tremendous understanding of what is required by our clients” - Shehab ElNawawi
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many countries, into new areas of technology and to become a strong regional player. Giza Systems has continuous improvement at the core of its business practices; Shehab said: “We have a scorecard system that we use to measure our corporate performance; this is cascaded to departments and individuals; we track how we are performing year on year.” Using this system not only instils a feeling of progress within the company’s ethos, it also provides employees and management teams with hard facts to build on to ensure future success. It has cemented this initiative through its continued adherence to the ISO:140001, ISO:9001 and OHSAS:18001 global standards. Shehab explained how the business was able to weather economic uncertainty and regime
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change in Egypt: “It forced us to expedite our business in Kenya, Tanzania and Nigeria; our business in Saudi Arabia also kept growing.” It is therefore clear that diversification has enabled Giza Systems to remain profitable despite a major slowdown in a key territory. In order to remain commercially agile and to maintain focus on its corporate objectives, the company maintains a wide range of partnerships across multiple sectors across Africa and the Middle East. Alongside partnerships with the Egyptian state water and electricity authorities, Giza Systems’ technological solutions are utilised by large providers such as Kenya’s KenGen, Saudi Telecom Company (STC), Tanzania Electric Supply Company Limited (TANESCO), and Ethio Telecom of Ethiopia.
Airport complexity
Diversification has enabled Giza Systems to remain profitable despite a major slowdown in a key territory.
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‘Blue Ocean’ technology Shehab explained the subtly sophisticated tiers of thinking that go into Giza Systems’ blue ocean strategy: “We are 45 years old but we have the mind-set and energy of a 20 year old, and the curiosity of a 5 year old. We try to blend these together, encouraging our employees to question the group’s performance. Everybody understands this exercise.” Recognizing current and future technological trends has enabled Giza Systems to become instrumental in orchestrating convergence between differing sectors; Shehab explained: “Over the past five years, developers in the power sector, which is traditionally an engineering field, are moving into using IT solutions. But you need an SI (Systems Integrator) that understands
SUPPLIER PROFILE
Powerline construction
PHOENIX CONTACT MIDDLE EAST
PHOENIX CONTACT, founded in 1923, with headquarters in Germany is a leading manufacturer of electrical connection, electronic interface, and industrial automation technology. Our worldwide distribution activities are effected via a global network with 14,000 employees, 50 own subsidiaries and more than 30 representations in Europe and Overseas, while the production network includes five production sites in Germany and ten production facilities in various parts of the globe. The product range includes components and system solutions for energy supply, including wind and solar, device, machine tools and control cabinets.
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GIZA SYSTEMS
Transmission project
Alarm & Detection since 1871
the power industry in order to make that transformation. That is where we come in: we offer the best of both worlds.” Utilising Supervisory Control And Data Acquisition (SCADA) systems, the company has been able to supply data management to one of humanity’s oldest practices: irrigation. In short, SCADA enables organisations to control equipment remotely, while simultaneously capturing data in the process. Shehab said: “We automate irrigation outlets – these are the biggest plantations in eastern Saudi Arabia which again proves that we are a leader in this space; we implement the systems that collect the
Mass Notification Smoke Detection Incident Management Instant Messaging Industrial Signaling Voice Evacuation Smoke Control
Fire Suppression CO Detection Heat Detection Audible/Visible Signals Voicemail Messaging Duct Smoke Detection Electronic Signage Area of Rescue
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www.kiddefiresystems.com
Kidde Fire Systems is a global leader in fire protection, protecting people, property, and processes from fire hazards. Whatever your business, wherever you work, a Kidde Fire Systems solution can be designed to protect your team and your operations. Our fire protection solutions include intelligent smoke and heat detectors, conventional and networked system controls, and the largest portfolio of fire suppression agents in the industry. And it is all designed, installed and maintained by Kidde Fire Systems’ highly skilled Authorized Distributor network.
InDuStRIeS we PROteCt Cement Plants Clean Rooms Commercial Kitchens Communications Data Processing Heritage Preservation Iron and Steel
Industrial Processes/ Manufacturing Marine Mining Oil and Gas Power Generation Records Storage
TECHNOLOGY
data, consolidate it through our cloud offerings and analyse it through our business intelligence portfolio.” He added: “On our commercial side we are developing a portfolio of IOT products; our long standing partnerships mean that we have a tremendous understanding of what is required by our clients.” Working closely with clients has therefore enabled the company to remain in a position to not only offer clients the newest technology, but solutions that are customised to the particularities of each client and sector individually. Growing responsibly Working for a leading niche company provides Giza Systems employees with unique opportunities for growth and development, Shehab was keen to link this with the success of the business, he said: “There are always opportunities because the company is growing.” Employees can therefore reap all the benefits of being part of a growing, indemand organisation, but are also subject to the often all too rare experience of occupying a unique space in the market. This aspect of the company is leveraged to provide a particularly rewarding experience for engineering graduates beginning their career with Giza Systems; Shehab said: “We make sure that the environment for our graduates is friendly, unencumbered and simple – the projects are always challenging and the tech is always cutting edge.” From the outset, employees can
Key Personnel
Shehab ElNawawi Chairman and CEO Shehab ElNawawi is the Chairman and CEO of Giza Systems. He joined the company as Managing Director 2000 on a downturn, and by 2004 he turned the company around, then he tripling its top line and quadrupling its market valuation. He became the Chairman of the company in 2007. Shehab holds a BSc in Biomedical Engineering from Cairo University; he started his career in 1987 as a field engineer for Schlumberger Wireline in India where he remained until 1991. He then became the Network Manager for Rogers Data Services in Canada, overseeing technical trials of dataover-cable in 1994. In 1996 he ran the North Middle East sales office for Newbridge Networks, a voice and data switches manufacturer.
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GIZA SYSTEMS
Toukh Water Plant
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see a clear line of career progression, alongside a bonus system linked to the company’s improvement score card and pension plan. Giza Systems has involved itself in a range of initiatives aimed at improving the conditions of its employees and the communities it operates in. Shehab elaborated: “In order for us to win business, we have to establish trust with our customers; we don’t plan hit and run opportunities. We employ local people, develop them and get them to volunteer to help others in their country. The private sector must pay back to the societies it works in, if not it is not conducive to long term business growth.” Giza Systems offers funding, technology, and
TECHNOLOGY
Power plant
Company Information INDUSTRY
Techonology HEADQUARTERS
New Cairo, Egypt FOUNDED
1974 EMPLOYEES
800 REVENUE
expertise to initiatives in Cairo. It has pioneered a project that supports local women making schoolbags by hand using recycled materials by providing them with business support and assisting with microfinance arrangements. The company also sponsors a fabrication laboratory (FAB lab) that provides students with cutting edge design technology for free. As a company whose success is so closely tied to the prosperity and development of its clients, Giza Systems has set a precedent for businesses everywhere. It has developed its own unique success story by concentrating on innovation and breaking new ground, as well as only competing with the standards it has itself set.
Not disclosd PRODUCTS/ SERVICES
Systems Integration
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Vodacom Business Africa
Enabling continentwide growth Written by: Sam Jermy Produced by: Kevin Holmes
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VODACOM BUSINESS AFRICA
The ICT subsidiary of Vodacom Group offers an unprecedented scope of enterprise communications services in over 40 African countries
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frica has some of the fastest growing GDP (Gross Domestic Product) rates in the world, with some countries growing between 7-9 percent each year on average. With a population of more than 1 billion people, fast moving businesses are taking advantage of the opportunities on offer and Vodacom Business Africa (VBA) facilitates growth through its ICT services. Vodacom Business Africa prides itself on being able to assist a range of multinational and medium-sized corporations, to expand across the different countries throughout the continent. Companies used to grow in small numbers but have now gained the confidence to expand to more than 10 countries at a time, which is where they are able to assist with connectivity. Douglas Craigie Stevenson, Group Managing Director at Vodacom Business Africa (VBA) says: “We’re a total communications provider for multinationals, and that means we offer the full suite of ICT Services. CIOs (Chief Information Officers) expanding their businesses into Africa are able to get all their enterprise communication needs from VBA as a single service provider.” Network stability and uptime are very important to running operations smoothly. VBA has a 24/7 Customer Service Operations Centre which monitors all aspects of the network. “We can tell you exactly where and when your network has a fault and resolve it. International customers accustomed to world
TECHNOLOGY
Take the weight off with full IT support.
class service, tend to expect the same when expanding into Africa. Our business model is such that we enable business without borders, by offering connectivity across the continent. Where we are unable to lay down infrastructure, we have partnerships that ensure seamless connectivity from one point to the next.� Service Capability As a world-class strategic partner connecting businesses to the African continent, VBA is a key ICT enabler for enterprises across the globe. With points of presence (PoPs) in more than 27 countries across Africa, Europe and Asia, the VBA enterprise communication network connects businesses to more than 42 countries s in Africa.
40 Number of African countries accessible with Vodacom’s MPLS networks
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VODACOM BUSINESS AFRICA
Networking that is geared for growth
“The sheer geographical size of Africa brings its own challenges but we work to mitigate them. I think the whole digital landscape will be vastly different five years from now and so we strive to be ahead of the industry curve.” said Douglas Craigie Stevenson. “We describe ourselves as a pan-African total communications service provider and have on the ground presence, with Operating Companies in 16 countries including Nigeria, Zambia, Kenya, Ghana and Cameroon amongst others. This is why we believe we can offer our customers whatever they need.” This has proven to be positive for VBA, since it has won 72
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TECHNOLOGY
Heart and soul are nothing without eyes and ears.
industry awards for ICT Infrastructure as well as Cloud Service Provider of the year in Nigeria’s Beacon of ICT Awards for the last three years. The company’s unique selling point centres on its heightened ability to offer a value added layer through services such as video conferencing, cloud computing and machine to machine (M2M) technology. Because of its network footprint, VBA offers scalability that many others do not. Continuing growth “Looking at the exponential rate of growth in bandwidth and the way networks are laying down fibre, we decided to invest in more data
“We describe ourselves as a pan-African total communications service provider and have on the ground presence, with Operating Companies in 16 countries including Nigeria, Zambia, Kenya, Ghana and Cameroon amongst others.” – Douglas CraigieStevenson, Group MD at Vodacom Business Africa
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VODACOM BUSINESS SA
A Ready Business communicates across borders without compromising on quality. Network – Multi-Protocol Label Switching A Ready Business has a competitive edge over rivals with crystal clear voice and video calls. It can really hear what clients are asking for and respond. A Ready Business can feel certain that it’s connected around the world over a single, secure network that delivers data transfer at the speed of light. Our MPLS network supports our enterprise customers with quality, high-speed connections. Are you Ready? vodacom.com/africa
Vodacom
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TECHNOLOGY
Douglas Craigie-Stevenson Group MD at Vodacom Business Africa
and customer service centres throughout Nigeria, South Africa and the wider continent.” There is a distinct opportunity that the high consumer population offers to inbound corporates. Data access enables consumers to generate content by telling their own stories which facilitates better customer engagement. Data and digital strategy will enable enterprises to gather enough information about their consumption patterns in order to address customer needs and grow. “To address the high volumes of social media usage by the same population, companies have a greater need for more bandwidth as a means to gather more data in the cloud,” said Craigie Stevenson. “So our ability to be flexible around bespoke solutions for businesses is quite simple for us as we understand how to operate on the
“Looking at the exponential rate of growth for bandwidth and the way networks are laying down fibre, we decided to invest in more data and customer service centres throughout Nigeria, South Africa and the wider continent” – Douglas CraigieStevenson
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VODACOM BUSINESS AFRICA We focus on building, managing and supporting our network, giving you the edge to focus on your core business.
“Our customers push us, and we have to anticipate needs and secure their data. It’s an incredibly exciting industry, and I’m full of optimism about Africa.” – Douglas Craigie-Stevenson
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TECHNOLOGY
continent and how to extend the footprint. We offer a capability layer, and can securely host data in the cloud - allowing our customers to be innovators in business,” he added. Strategic partnerships also help Vodacom Business Africa in its digital surge forward. One such partnership is with M2M firm X-Link, which pioneered the use of mobile networks to link card payment machines to banks. Through this partnership, they provide tailored mobile and fixed line machine-to-machine communication solutions, as well as devices and infrastructure for secure data processing and failover. With mobile technology group Mezzanine, VBA offers tailor-made M2M solutions for enterprises in the health, agriculture and education sectors. The convergence with innovative technology is just one example of how Vodacom Business Africa is continuing to bring a fresh, pioneering approach to ICT in Africa. Although Craigie Stevenson acknowledges challenges such as logistics and power outages, he believes these will be resolved. He said: “If you have a big enough problem, there is usually a plan to solve it, which drives innovation. “Our customers push us, and we have to anticipate needs and secure their data. It’s an incredibly exciting industry, and I’m full of optimism about Africa and Vodacom Business Africa as a company.”
Company Information INDUSTRY
ICT HEADQUARTERS
Johannesburg FOUNDED
2008 EMPLOYEES
N/A REVENUE
N/A PRODUCTS/ SERVICES
Multiprotocol Label Switching (MPLS). Virtual Private Network (VPN) network platforms. Bespoke end-to-end ICT service solutions.
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Suez Canal Container Terminal
Growing with Egypt
Written by: Nye Longman Produced by: Daniel Pritchard
S U E Z C A N A L C O N TA I N E R T E R M I N A L
SCCT is capitalising on its strategic location between Europe and Africa, and is leveraging investment to maintain its influence in the Mediterranean
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June 2015
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ith over $750 million invested, SCCT is set to become a key Egyptian shipping hub, with the capacity to successfully compete with any of the existing ports along the Mediterranean. Initiated in 1999 and operational since 2004, 55 percent of the company is owned by APM Terminals, 20 percent by COSCO, 10 percent by Suez Canal and Affiliates and 5 percent by the National Bank of Egypt, with the remaining 10 percent share divided between Egyptian private sector investors. Vital to Egypt’s growth Klaus Holm Laursen, Managing Director of SCCT highlighted that the terminal near Port Said is to play a significant role in Egypt’s future economic expansion. It will be crucial President Sisi’s economic plan to create the Suez Canal Zone: a long term infrastructure development that aims to increase trade and create hundreds of thousands of jobs. The terminal plans to extend its capacity to exceed 5.4 million per year as part of its ongoing expansion efforts. Currently, SCCT has deployed 20 super post-panamax quay cranes, 58 rubber tyre gantry cranes (RTGs) 165 terminal tractors, and 59 spreaders. Laursen added: “We are prepared for the huge levels of traffic that are commonly seen today. We have ordered another four of each crane, which has cost over $42 million. We
S U P P LY C H A I N
SCCT is set to become a key Egyptian shipping hub
will soon be receiving another five gantry cranes to increase our capacity.” These cranes can reach a height of over 40 metres, enabling them to meet the requirements of the world’s largest container vessels. The Suez Canal is in a critical geographic location, providing the African continent with a direct trade route into Europe and the Middle East. Laursen acknowledged its importance, he said: “It would be truly devastating not to have access to our facilities; not only would costs increase for all those involved, it would also take longer for many goods to enter Egypt and the broader continent.” He also acknowledged that, despite its privileged geographic location, SCCT is in in a competitive environment, jockeying for position with other hubs such Jebel Ali, Alexandria, and Tunis, among many others dotted
SCCT’s tallest cranes exceed 40 metres which enables them to service the world’s largest container vessels.
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S U E Z C A N A L C O N TA I N E R T E R M I N A L
“The Suez Canal is situated in a critical geographic location, providing the African continent with a direct trade route into Europe and the Middle East” – Klaus Holm Laursen, Managing Director
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June 2015
S U P P LY C H A I N
around the Mediterranean. Tomorrow’s technology In such a competitive market, it is vital that SCCT stays ahead of the game; it is leveraging the latest developments in management systems technology in order to maintain its lead. Its successful implementation of the cutting edge Navis N4 Terminal Operating System (OS) is both timely and forward thinking. The new OS is innovative for its ability to integrate IT strategy and centralise back office operations; it also has the capacity for new technological additions further down the line due to its open architecture. Laursen said: “It is the most advanced Operating System in the world. If you imagine that the container terminal was like a human body, it was like getting a new brain; before, we had a total of 53 systems running across the terminal.� The Navis N4 OS has been rolled out across many terminals all over the world, but SCCT is one of the largest operations to do so. According to over three quarters of its customers surveyed, implementing N4 technology has improved both operational visibility and yard equipment utilisation.
Key Personnel
Klaus Holm Laursen Managing Director Klaus Holm Larsen has a degree in Accounting and Auditing from the University of Aarhus. Before assuming his role as Managing Director of SCCT, he was a manager for PriceWaterhouseCoopers and has also worked at c-level positions within the port terminals industry, including Maersk, Aqaba Container Terminal, and APM Terminals.
Positive culture Working for a container terminal carries great responsibility at every level, which is why Laursen and his management team are keen to not only establish exemplary working practices, but also w w w. s c c t p o r t s a i d . c o m
S U E Z C A N A L C O N TA I N E R T E R M I N A L to create a positive culture across the business. Perhaps it was this idea which led them to encourage workers to ask: “Why do I come to work?” He said: “We are trying to create a sense of ownership between our employees and the equipment they operate. An employee that owns his own cab looks after his own much more so than if it belongs to his employer; we have noticed that employees become much more observant and proactive maintaining it.” To ensure that this is reinforced, the company makes sure to provide performance related bonuses. The culture of the SCCT workforce is certainly enviable, Laursen was keen to recognise how
OM FUTURE C
N PA
Y
Future Company is the main supplier for wire ropes and spare parts for container equipment Our proprietary and innovative German engineered rope designs deliver the highest level of performance and safety
Tel 0020572378153 Fax 0020572348153 Mob 00201005054059 futureco@internetegypt.com tahier05@hotmail.com Future Co • 4 Cornish El Nil • Damietta • Egypt
S U P P LY C H A I N
Suez Canal Terminal by night
well they could quickly adapt to the change to the N4 OS, he said: “We were impressed with how so many people could adapt all at once to do their jobs in a new way.” It is certainly a credit to both management and the company as a whole for 2,000 employees to be quickly adapt to the implementation of a radically modern Operating System.
2,000
Corporate Social Responsibility SCCT recognises that through a carefully executed approach, its growing operations can have a positive impact on both local communities and the environment. Laursen summed up his company’s attitude when he said: “We want to develop a good relationship with the community and we want to provide opportunities for local people.”
The number of staff the Suez Canel Container Terminal employs
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S U E Z C A N A L C O N TA I N E R T E R M I N A L
“The work of SCCT over the past decade has shown that continuous growth does not simply benefit the local community financially, but also instils skills and attitudes for life.� – Klaus Holm Laursen, Managing Director 86
June 2015
S U P P LY C H A I N
The company has realised its vision by providing education opportunities to local communities; it has entered into an agreement with the Egyptian Ministry for Education to fund the construction of a secondary school in Balouza village in the North Sinai Governorate. SCCT is also keen to invest in the prosperity of future generations, creating roughly a hundred opportunities to become a through its partnership with the Port Training Institute at the Arab Academy for Science, Technology, and Maritime Transport (AASTMT). Laursen commented: “We wanted to help the local the community to provide for themselves; we provided them with fair pay and training, and even provided those that excelled with a job once the apprenticeship expired.” Reducing its environmental impact has also been a top priority for SCCT. So far it has worked to recycle energy used in its cranes and use solar powered cells to heat much of the water used on site. Interestingly, the company is also exploring greening the surrounding desert to benefit the wider community. The work of SCCT over the past decade has shown that continuous growth does not simply benefit the local community financially, but also instils skills and attitudes for life. This company’s critical position between three vast economic territories, alongside the diligent management of Klaus Holm Laursen and his team, will ensure that this model of shared success will continue for some considerable time.
Company Information INDUSTRY
Supply Chain HEADQUARTERS
Egypt FOUNDED
1999 EMPLOYEES
2,000 REVENUE
Not Disclosed PRODUCTS/ SERVICES
Shipping, Port Terminals, Supply Chain, Operating Systems
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NIGERDOCK
West Africa’s Leading Oil & Gas Services Company Written by: Sam Jermy Produced by: Richard Deane
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NIGERDOCK The company, which is strategically located on Snake Island Integrated Free Zone in Lagos, focuses on upstream oil and gas services (EPC- Green&Brownfield Projects); Marine Services (Ship Repair & maintenance); Base Support services (Logistics, accommodation, catering, Real estate); Training and Development services (Welding, Fabrication, Machining, HSE, etc).
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Meji Platform - Chevron
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June 2015
igerdock is West Africa’s leading indigenous upstream oil and gas services company focused on Oil & Gas construction and marine services including offshore fabrication, ship building and repair, industrial training and specialised Oil & Gas and Maritime support. It is strategically located on Snake Island Integrated Free Zone, in Lagos, with immediate access to the open seas. Snake Island Integrated Free Zone is a leading West African industrial development. Focused on Maritime and Oil & Gas Services and Operations, it offers tremendous opportunities for International Businesses to participate in Nigerian and West African Deepwater Projects. The company said: “We lead the development of Nigerian content in our industries, achieve operational excellence and growth by
EXCELLENCE DELIVERED
Snake Island Integrated Free Zone
continuously training our workforce and investing in technological resources enabling us to deliver value to our shareholders, customers, employees and the nation. “Nigerdock adds value to the Nigerian Oil and Gas and Maritime Industries and the Nigerian Economy by providing products and services to world class standards of safety quality and on-schedule delivery.” Company Vision Nigerdock plans to create and operate a fully functional support centre to the Deepwater Oil and Gas Industry in Nigeria, through the active attraction of investment and creation of employment opportunities resulting from the progressive development of an efficient, secure,
“Nigerdock adds value to the Nigerian Oil and Gas and Mariitime Industries” -Nigerdock
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About U
Wellmann gr shop supply Front end En Heavy lift, W out operatio competent p own and ope trailers(SPMT modular Jac
We Specialise In • • • • • •
Ballast Operations Heavy Lift Operations Modular Weighing & Jacking Marine Logistics & Cargo Barges Land Reclamation & Creek Improvement Front End Engineering Design
Our Partners
B
T 053-321788 F 053-321789 M 08023324933 info@wellmanngroup.com www.wellmanngroup.com
Us
roup offer a one stop y chain solution comprising ngineering and Calculation, Weighing, Jacking, Load ons utilizing skilled and personnel. wellmann also erate Self-propelled modular T),offshore barges, and cking and weighing systems.
Block 22 • N.P.A Housing Estate • Airport Road • Warri-Delta State • Nigeria
SUPPLIER PROFILE
THE WELLMANN GROUP The Wellmann Group evolved in 1991 as a result of successful completion of high profile projects in the Oil and Gas industry, utilizing the resources and expertise of local and international companies. This evolution has resulted in the current group capacity to undertake major projects in Fronts end engineering, Heavy lift, Marine movement, Modular Jacking and Weighing System. Other members of the group are Pritod Construction, Brazerville International and limelight Entrepreneurs. She owns and operates a vast fleet of self propelled modular trailers, offshore Barges, synchronized Jacking/Weighing System, Mooring Winches and Ballast pumps. The Wellmann Group have delivered on the following projects, to mention but a few are ; Chevron Agbami FPSO Project, Snepco Bonga FPSO Project, Chevron EGTL Project, Total Ofon Project, Chevron EGP3 Project, Total Usan FPSO Project, Shell Ovhor Concrete Barge Towage, ExxonMobil Satellite Field Project, Chevron Didbi & Olero Concerte Barge Towage and Total OWL Module Loadout etc. CEO/Founder Chris iyovwaye is a graduate of international studies and diplomacy from university of Benin Nigeria. He hails from Delta State Nigeria and speaks English fluently.
Website: www.wellmanngroup.com
NIGERDOCK
EXCELLENCE DELIVERED
commercially effective support infrastructure, and its continued cost-efficient operation. The organisation’s training school offers world class training of personnel in the fields of Welding, Pipefitting, Plating and Machining. The Training School has been selected as a centre in Nigeria for the training and certification of welders to International Standards. This programme is being coordinated by the Nigerian National Petroleum Corporation (NNPC) and actively supported by stakeholders in the Industry. It is part of the Federal Government’s Nigerian Content Development Policy for the Oil and Gas Industry. “The Training School has fully equipped classrooms which can be utilised for most training requirements including Rigging, Safety,
“Nigerdock adds value to the Nigerian Oil and Gas and Maritime Industries and the Nigerian Economy by providing products and services to world class standards of safety quality and on-schedule delivery” – Nigerdock
Bonga FPSO - Shell
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+234 (0)84-301-858 • +234 (0)803 500 6525 info@inspe
A ONE-STOP SHOP FOR ALL YOUR
TESTING & INSPECTION NEEDS
Core Values The ITL Brand is unique because we are a God-fearing people willing to go the extra mile any time, any day. We are resilient and adaptable to the needs of our client and show transparency with moral ethics in our business dealings. Above all we always put ourselves in our client’s shoes to better understand and meet his or her needs.
Km 1 Eleme-Onne Road • Off Eleme Junction Flyover • Opposite Bristow Quarters • P.O.Box 5
ectionandtests.com www.inspectionandtests.com
Who are we? Founded in 1997 by seasoned professionals, INSPECTION AND TESTS NIGERIA LIMITED (ITL), an ISO 9001-2008 Certified Company, has become a topmost local brand with both an international outlook and a multinational reach – Ghana & USA, and various Nigerian branches.
testing to above 20,000 Psi, Post Weld Heat Treatment as well as Training and Manpower development in Welding Inspection and other Engineering Supervision scopes such as AWS, API & PCN Schemes & Welder Training to IIW Schemes under NIW
Multiplying her tentacles of services from quality control, quality assurance and non-destructive testing services to allied and complementary services in the oil, gas, marine and energy industries – including integrity assessment, technical integrity verification, blasting, painting and corrosion control services, lifting inspection, shop floor & expediting, PMI, OCTG Controls, testing & management, pressure
Our Destructive Testing Laboratory is in a class of its own and offers all that is needed to qualify both welder and procedure for any project scope and specification, manned by mature professionals operating up-to-date ultramodern equipment. Our personnel are trained to the best schemes and levels obtainable in the industry and we are proud of their tenacity of purpose and commitment to professionalism and ethics.
5064 • Port Harcourt • Rivers State • Nigeria
SUPPLIER PROFILE
INSPECTION AND TESTS NIGERIA LIMITED Inspection and Tests Nigeria Limited (ITL) is an ISO 9001- 2008 certified Company involved in Quality Assurance, Quality Control, Project Management, Technical Integrity Verification (TIV), As-Built Verification, Pre-Commissioning & Commissioning Inspection, Material Verification, Boroscopic Examination, Positive Metal Identification (PMI), Leak Testing, Tank Calibration & Measurements, Tank & Tank Floor Inspection, Valves inspection, Corrosion Mapping, Buried Lines identification, Pre & Post Weld Heat Treatment, Pressure Testing, Vacuum Box Inspection, as well as blasting/painting of facilities onshore/offshore. We also conduct Lifting Inspection for Offshore Containers/accessories and handle Tubular (OCTG) management and inspection to relevant specifications. We carry out basic Nondestructive & Destructive Testing for onshore/offshore operations. Our NDT capabilities include Ultrasonic Flaw Detection, Industrial Radiography, Magnetic Particle Inspection, Dye ! Penetrant Inspection, etc while our Destructive Testing covers Charpy V-Notch, Bend, Tensile, Compression, Hardness, Macro & Micrography, etc. COMPANY PROF We also conduct advanced inspection and testing services including AUT, PAUT, Eddy Current, etc. We also conduct various Training and Manpower Development for the Oil, Gas, Marine and Power industries, including QA/QC management, API & NDT Training and Certification, and in collaboration with our Joint Venture partners. Welding Institute of UK (TWI), we conduct welding inspection training to internationally recognised certification. (CSWIP)
NIGERDOCK
EXCELLENCE DELIVERED
Adriatic VIII Refurbishment - Transocean
Quality and First Aid. It has the ability to train and test Welders in SMAW, MMAW, FCAW and TIG processes, in all positions and to any Client’s requirements whilst certifying to Lloyds, ABS and DNV standards. All trainees must attend a thorough induction program including basic safety and quality training.� the management commented. Pipefitters and platers are trained in practical and theoretical fabrication techniques including manual and machine burning and cutting, layouts and fit-ups, auto-levelling, measuring, preparation methods and tacking. Machinists are trained in manual and semiautomatic processes including detailed marking out, turning and screw threading on lathes, metal
Eiffel Living Quarters - Total
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NIGERDOCK
1990-2015
POWER GENERATION, TRANSMISSION AND DISTRIBUTION
25
th
Anniversary
BUILDING SEVICES
M E P CONSTRUCTION
Devoted to the development and prosperity of NIGERIA WATER TREATMENT
HEAD OFFICE
1 0 0 March 2015 INDUSTRIAL PLANTS
Abuja 138 Aminu Kano Crescent, Wuse II, FCT Abuja, Nigeria Tel: +234 (0)9 461 1362 Fax: +234 (0)9 461 1364
Lagos 269B Kofo Abayomi Street, Victoria Island, Lagos, Nigeria Tel: +234 (0)1 271 4167 Fax: +234 (0)1 271 4168
office@energonigeria.com
www.energonigeria.com
NIGERDOCK
EXCELLENCE DELIVERED
joining through processes, machining of intricate components, sinking dies, cutting of Gears and machining of bushings and eccentric turning. Atlantic Aviation Free Zone Enterprise is a Nigerian helicopter services company dedicated to providing safe and efficient aviation support by adhering to the highest standards of integrity and quality. It is dedicated to serving Nigeria’s offshore oil & gas industry to provide transportation to platforms and other offshore installations, helicopter maintenance repair & overhaul, and Search & Rescue (SAR) operations. Operations Nigerdock is the leading EPC (Engineering, Procurement and Construction) contractor,
Atlantic Aviation Free Zone Enterprise
SUPPLIER PROFILE
ENERGO
Energo Nigeria-Ltd. is a private, engineering & contracting company founded in 1990. Years of experience has taught us to be fast and agile, keen and smart to take chances and stand for what we believe in - Create value for all our stakeholders.Responding to the needs of electric-power providers, industries, Government and Public authorities in Nigeria and worldwide Address: Aminu Kano Crescent No.138, Wuse 2, Abuja Tel: +234 9 4611362 Fax: +234 9 4611364 Email: office@energonigeria.com
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NIGERDOCK
West Africa’s Leading Oil & Gas Services Company
“We have the best Training School in the country constantly training the Offshore Welders, Grinders, Fitters, Blasters, Painters, Scaffold¬ers and Riggers to the highest levels” – Nigerdock 102
June 2015
specialised in the fabrication of topside mod¬ules, subsea manifolds, jackets, wellheads, satellites, process platforms, process piping, buoys, piles yokes, and double joints. It also specialised in offshore installa¬tions of pipe spools, supports, platforms and heat shielding including pipe coating and the installation of MOV’s, flowmeters, P&T transmitters, and F&G detection systems. Management said: “We have the best Training School in the country constantly training the
EXCELLENCE DELIVERED
25,000DWT Offshore Welders, Grinders, Fitters, Blasters, Painters, Scaffolders and Riggers to the highest levels. This attains the best capability and expertise that are required to deliver in accordance with international quality and safety standards. Our team is sprinkled with National and International expertise and experience deliver projects safely, on time and within budget. “The Pressure Vessel Division has the resources to manufacture pressure vesÂŹsels, columns, drums and process plant packages for the
Size of Nigerdocks graving dry dock
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NIGERDOCK
We Value Safety, People, Commitment, Integrity, Adaptability and Flexibility, Trust and Customer Satisfaction
STOCKISTS/SUPPLIERS OF STEEL MATERIALS PIPE FITTINGS & VALVES LEASING CRANE/EARTH MOVING EQUIPMENTS LIGHT & HEAVY DUTY TRUCKS CONSTRUCTION ENGINEERING
0803 309 0279 0903 316 3426 info@palmasinternational.com palmas_international@yahoo.com www.palmasinternational.com 1 0 4 March 2015
NIGERDOCK
EXCELLENCE DELIVERED
Oil & Gas Industry and is ASME U & R Stamp Certified. Process modules and large skid packages are also manufactured in conjunction with the Offshore Fabrication Division. “The company as a whole is capable of producing design engineering to all international codes of construction and has recently invested in new plant & equipment including a CNC plate cutting machine, plate rolling to 100mm thick, columns & booms for semi-automatic welding techniques, rotators, a pipe profiling machine and more all in accordance with the latest technology.” Nigerdock’s Shipyard Division is the largest facility of its kind in West Africa with an out-
Dry Dock
Ofon Phase II Projects
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Avoid costly delays.
Partner with us and reduce your downtime for scheduled maintenance and unforeseen shutdowns of your processing assets. Our integrated nitrogen, cleaning, and drying process maintenance services are designed to do one thing: get you back up and running as fast as possible. And our multi-skilled experts have the experience and proven capability to engineer safe, reliable solutions to shorten your project schedule and recover downtime and financial losses. Visit BakerHughes.com/PPS to learn how our certified project managers can optimize your maintenance objectives so you avoid costly delays.
Š 2015 Baker Hughes Incorporated. All Rights Reserved. 42753 02/2015
NIGERDOCK
EXCELLENCE DELIVERED
standing history in the marine industry. It is specialised in the fields of ship building, ship repair, maintenance and refurbishment. It has a 25,000DWT graving dry dock, a 3,500DWT floating dock, quayside facilities and weather proof multipurpose workshops. Not satisfied with standing still, the company has impressive plans to develop and expand its Shipyard Division with the objective to improve its specialist and engineering capacity and carry out more complex operawtions including rig refurbishment and the ability to build larger vessels. The shipyard management is focused on offering its clients the highest level of service and to consistently improve on its quality and level of workmanship.
SUPPLIER PROFILE
‘The company has impressive plans to develop and expand its Shipyard Division with the objective to improve its specialist and engineering capacity and carry out more complex operawtions including rig refurbishment and the ability to build larger vessels’
BAKER HUGHES
Baker Hughes Process and Pipeline Services (PPS) is the world’s leading service provider for process and pipeline pre-commissioning, maintenance and inspection applications. For over forty years, a staff of more than 1000 professionals, over forty bases worldwide, and the industry’s largest fleet of process and pipeline equipment has delivered a prompt, reliable response to our clients’ needs, combining expertise with advanced technologies for effective cleaning, drying, testing and inspecting process and pipeline systems. We have introduced many ground-breaking services to the process and pipeline industry: nitrogen/ helium leak testing, foam inerting and, more recently, hybrid cooldown technology for process plants.
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NIGERDOCK
SUPPLYING SUPPLYING THE THEFUTURE FUTURE OF OFINDUSTRY INDUSTRY
www.traverrse.com www.traverrse.com info@traverrse.com info@traverrse.com
The The Traverrse Traverrse brand brand isis synonymous synonymous with safety, quality and comfort with safety, quality and comfortand andisis trusted trustedby byworkmen workmenworldwide. worldwide.
OAASIS OAASISGroup GroupLtd, Ltd,aaDistributionNOW DistributionNOWcompany, company,isisaaleading leading distributor distributorofofPPE PPEand andMRO MROequipment equipmenttotoclients clientsininon onand and offshore offshoreindustrial industrialsectors. sectors. OAASIS OAASISisisan anoffi official cialdistributor distributorofofthe theTraverrse TraverrseSafety SafetyWorkwear Workwear brand, brand,providing providingcost costeffective effectivesolutions solutionsfor forthe thesupply supplyofofhigh high quality qualityworkwear workwearand andPPE. PPE. Contact ContactOAASIS OAASISGroup Groupnow nowfor formore moreinformation. information. Great GreatYarmouth Yarmouth
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Merchants Atlas MerchantsHouse, House,Gapton GaptonHall HallRoad, Road, AtlasHouse, House,Greenbank GreenbankCrescent, Crescent, Great GreatYarmouth, Yarmouth,Norfolk. Norfolk.NR31 NR310NL 0NL East EastTullos TullosInd IndEst, Est,Aberdeen. Aberdeen.AB12 AB123BG 3BG +44 +44 +44(0)(0)1493 1493660690 660690 +44(0)(0)1224 1224893332 893332
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Trobatt Technical Company Limited Trobatt specialises in electrical, instrumentation and telecoms construction and maintenance for the oil and gas industries in Nigeria.
080 3583 1403 080 5540 7428 trobatttech.co.ltd@gmail.com
NIGERDOCK
EXCELLENCE DELIVERED
Collaborations Skillbase is a part of Jagal Energy, owners of Nigerdock Nigeria PLC, also located within Snake Island Integrated Free Zone, and an integral part of the Snake Island DISC (Deepwater Integrated Support Centre) Concept. Skillbase is a costefficient logistics hub at the heart of a service centre for the oil & gas industry. It is a model of oil industry design and planning, bringing services and suppliers together on a single site, linked to deepwater quaysides with capacity to handle supply vessels and cargo imports simultaneously. Skillbase is designed to support exploration and development drilling, subsea construction and maintenance, FPSO Module Assembly and
Bonga Deepwater Buoy - Shell
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MUDIAME INTERNATIONAL LTD
QUALITY IN ALL ONE STOP LABORATORY Mudiame is a one stop Laboratory that offers Mechanical Destructive and Non Destructive Testing, Corrosion Testing, Calibration, Inspection Services, Civil Material Analysis, Training and Certification.
234 8103 56 7175 info@mudiame.com mudiame02@yahoo.com www.mudiame.com
MUDIAME INTERNATIONAL LIMITED 105 IGBO-ETCHE ROAD, OPPOSITE ENARCO RUMUOKWURUSHI, PORT HARCOURT, RIVERS STATE, NIGERIA
Promoting Excellence Through Quality • Heavy Transportation • Insulation Services • Material Inspection • Non Destructive Testing • Lifting Equipment Inspection Contact Us +234 806 822 3540 fairtex@ymail.com jacob@fairtex.com.ng www.fairtex.com.ng
• Heavy Weighing • Fabrication • Load-out • Ballasting • Mooring
Operations Office No.310 Port Harcourt Aba Expressway Port Harcourt River State
Admin Office No.4 Green Village Estate Road By Ap Filling Station Off Akpajo/Elelenwo Road Port Harcourt, River State
NIGERDOCK
EXCELLENCE DELIVERED
Hook Up, Operations and Maintenance, Integrated Project Teams with offices, accommodation and passenger and material transport links. In July 2008, Mobil (MPN) in joint venture with the Nigeria National Petroleum Company (NNPC) awarded the procurement and fabrication of Abang and Itut well platforms as part of the Satellite Field Development Project Phase 1 in OMLs 67 and 70. The project is the first of its kind to be executed in Nigeria where two complete platforms (from mudmat to helideck) are fabricated simultaneously incountry. The scope of work comprised of jackets/ appurtenances, piles, subsea templates, topsides/ associated skids and E&I systems fabrication.
Nigerdock collaberated to refurbish a 16,000 ton rig, a first of its kind in Nigeria.
Satellite Field Projects - Mobil
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AFRICA’S FUTURE ENERGY PROVIDER Fabrication & Construction Electrical & Instrumentation Cathodic Protection Inspection Services Calibration Services Manpower Supply Procurement
WE ARE 100% NIGERIAN OWNED
+234 803 4022 427 +234 809 3964 682 www.petroequipmentlogistics.com info@petroequipmentlogistics.com Block V House 3B Abraham Adesanya Estate Ajah Lagos
Buildwell Plants and Equipment Industries Limited Sarens Buildwell Nigeria Ltd Joint Company of SARENS Group and BUILDWELL Group
Nothing too heavy Nothing too high Block “O”, Plot “4” Gateway City Estate Industrial Area Joint Company of SARENS Group and BUILDWELL Group Lagos-Ibadan Expressway Ibafo, Ogun State Nigeria
+234 7098821313/4 +234 17735598
contact@buildwellng.com www.sarens.com www.buildwellng.com
NIGERDOCK
EXCELLENCE DELIVERED
Then in December 2009, Transocean and Nigerdock along with the Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Content Division of the Nigerian National Petroleum Corporation (NNPC) collaborated to take on a project that was yet another first of its kind in Nigeria, the refurbishment and maintenance of the gigantic jack-up rig - the Adriatic VIII. The rig weighs 16,000 tonnes with each leg measuring 140 metres in height. The scope of work included steel repair and general maintenance. The rig was the first of its kind to be berthed alongside any facility within Nigeria. Nigerdock employees working onsite.
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NIGERDOCK
Okan Platform - Chevron
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June 2015
A total of 30,000 man hours of training was expended in the training of welders and fitters in a special training program conducted between October 2008 and March 2009. Also, an additional five trainee engineers were assigned by the NNPC’s Nigerian Content Division to Nigerdock for a special on-the-job capacity building program. Nigerdock and Snake Island Integrated Free Zone are also strategic partners to Snepco (Shell Nigeria Exploration and Production Company) who coordinated the entire operations, logistics
EXCELLENCE DELIVERED
and support services for the Bonga project from Nigerdock’s support base in Lagos. Snepco had heliport operations that included 2 Super Puma Helicopters, crew boats, support vessels, a 2,000 square metre state-of-the-art office, housing and hostel facilities, restaurant and catering services. Snepco also awarded Nigerdock the topside structural steel and pipe works for final integration onto the Bonga FPSO. The package also included manpower services for onsite fabrication, construction and shop engineering, procurement of materials, blasting/painting, hydro testing of pipe spools, upgrading the living accommodation and load out. From a safety perspective Nigerdock achieved a distinct accomplishment as the only Nigerian fabrication yard on the Agbami project without a lost time incident. ExxonMobil’s Erha Deepwater Buoy is a catenary anchor leg mooring buoy and was awarded to Nigerdock in March 2004. The award package included fabrication, integration of the turn table platform, blasting/painting, full testing, pre-mechanical completion, load out and sea fastening. In addition, Nigerdock also provided all the required fabrication engineering. Additional investment in capacity building via training and certification programs were implemented (scaffolding, Rigging, Machining, Welding and Painting) to boost Nigerian content expectations and to support the project in terms of safety, quality, schedule and cost.
Company Information INDUSTRY
Oil & Gas HEADQUARTERS
Lagos EMPLOYEES
4000 PRODUCTS/ SERVICES
Offshore fabrication, ship building & repair, logistical & real estate, industrial training, specialized oil & gas and maritime support services.
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Company logo goes here
African Airlines Association By Secretary General Dr Elijah Chingosho
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AFRAA
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Dr Elijah Chingosho
To serve African airlines, promoting and protecting their common interests AFRAA mission statement
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he African Airlines Association (AFRAA) was established in April 1968 in Accra, Ghana as a trade organisation open to membership from airlines in African states. AFRAA is headquartered in Nairobi, Kenya; it has a membership of 35 airlines which constitutes more than 80 percent of all African international air transport services. Its mission is: “To serve African airlines, promoting and protecting their common interests.� Since its inception, AFRAA has been instrumental in developing air transport policies and articulating the views and positions of its members on a number of issues. Through its activities, the Association has contributed significantly to the growth and development of African aviation. AFRAA maintains an international perspective and provides a unique African voice on behalf of its members. The Association maintains relationships with governments and other industry stakeholders on the continent and across the world, advocating on key industry issues. These relationships include the African Union Commission, as well as the African Development Bank (AfDB). It also has similar links with with industry organisations which include the International Air Transport Association (IATA), Arab Air Carriers Organisation (AACO), the International Civil Aviation Organisation (ICAO), and the African Civil Aviation Commission (AFCAC), as well as the Airports Council International (ACI). AFRAA has links to various governmental and
S U P P LY C H A I N
non-governmental bodies and Regional Economic Communities such as the Economic Community of West African States (ECOWAS), the Common Market for Eastern and Southern Africa (COMESA), the Southern African Development Community (SADC), and the West African Economic and Monetary Union (UEMOA). Associations also extend across to an assortment of manufacturers and service providers. This level of collaboration accords AFRAA much goodwill as well as a broad framework of resources and assistance which benefits members, protecting their common
AFRAA Building
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AFRAA
AFRAA deals with key industry priorities, chiefly helping airlines attain industry best practices in safety, security and operations
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interests and providing support for a better economic environment for their operations. AFRAA deals with key industry priorities, chiefly helping airlines attain industry best practices in safety, security and operations. This includes ensuring that all African airlines attain IOSA certification as an important component of AFRAA’s safety programme. AFRAA is actively working with IATA, AFCAC and ICAO to ensure that safety levels on the continent reach global standards. AFRAA is a leading campaigner for reducing
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the industry costs which arise from high levels of taxation and charges on passengers, fuel and services, which are well above global levels. Fuel prices at some stations in Africa are over twice the world average which has an adverse impact on the competitiveness of African airlines. Higher costs translate into higher prices, which in turn stifles demand. At several African airports passenger charges range from $ 40-80 with some stations charging as high as $157, well above the world average. In contrast, Middle Eastern passenger charges
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AFRAA
Opening of the NEPAD Head of State and Government Summit, 29 January 2015 Addis Ababa, Ethiopia.
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are around $15-25. In Europe, apart from Heathrow Airport where passenger charges are just over $60, charges average below $33. The Association is also advocating for the industry to take its environmental responsibilities seriously and reduce the impact of aviation on the environment through modernising fleets and supporting initiatives towards carbon neutral growth to ensure a carbon free future. AFRAA is actively involved in driving industry change by advocating for fully open African skies for African operators. The recent African Heads of State Summit which took
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place in Addis Ababa from the 30th-31st of January made a solemn commitment to delivering this initiative by January 2017. AFRAA is communicating the successes of its members through a monthly newsletter (AFRAA Bulletin), a quarterly Africa Wings Magazine, a bimonthly CEO’s brief, and a revamped website, in addition to using its social media presence. Participation in member conferences, committees, and task forces offers unprecedented access to a variety of airline and industry partners. The AFRAA Annual General Assembly brings together representatives from leading airlines, partners and stakeholders from around the world. To improve capacity and ensure that African carriers effectively compete in the fiercely competitive industry, AFRAA provides training in major fields such as safety, security, operations, commercial, and managerial areas. These programmes help to strengthen the capabilities of aviation industry professionals. Eleven states recently declared their commitment to fully open their skies in conformity with the Yamoussoukro Decision (YD). This is very exciting because with fully open skies, African airlines can more freely consolidate through joint ventures and mergers, cross-invest in each other, and adopt other marketing arrangements that will spur growth and competitiveness. This will provide consumers and economies with the benefits of greater connectivity.
No.28: February - April 2015
A F R A A ’ S PA N A F R I C A N J O U R N A L O N A I R T R A N S P O R T
Interview with
Tunisair Chairperson & CEO
Africa Deserves Better Air Connectivity
46th AFRAA
AGA & Summit Concludes
Taking Control
of your Airline Revenues
Africa Wings Magazine
AFRAA Website
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Air Botswana:
AFRICAN DEPARTURES Written by: John O’Hanlon Produced by: Daniel Pritchard
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A I R B O T S WA N A
Africa is home to twelve percent of the world’s people, but it accounts for less than one percent of the global air service market: there is a huge opportunity crying out to be taken up, and Air Botswana is taking the lead
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Almost exactly a year ago Mr. Tozivazvipi Benster (Ben) Dahwa was appointed as CEO of Air Botswana (AB). He thought carefully before taking the job, but having done so he certainly threw himself into the task of formulating and delivering a five year plan to turn the country’s national carrier into a catalyst for economic development. Trained as an engineer, Ben Dahwa has over 30 years’ experience in aerospace, and sees his job as delivering culture change in an organisation hitherto cast in a traditional mould. To assess the current state, and to formulate change, AB brought in the USAbased consultancy ICF International. “The plan sets out a strategy based on structured rather than aggressive growth,” he said. “We need to consolidate and refine what we do.” The plan launched at the beginning of this year. Early targets such as on-time performance, cost containment and network rationalisation, however, were addressed right from the time of Dahwa’s appointment. For the travelling public the key metric is on-time performance: at the time of writing AB’s on time record (defined by IATA as within 15 minutes of scheduled time) stands at 86 percent. That is against a global industry average in the low to mid 70s, and represents a 16 percent improvement over the last ten months. Cause for satisfaction? Yes, agrees Ben Dahwa: “But we are a small airline. With new equipment and once the changes we are making take effect I see no reason why we
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“We believe this plan will improve our profitability to a point where we will no longer be reliant on subsidies” – T ozivazvipi Benster Dahwa, CEO of Air Botswana
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A I R B O T S WA N A
“We believe this plan will improve our profitability to a point where we will no longer be reliant on subsidies” – Ben Dahwa
should not achieve on-time performance more than 90 percent of the time, consistently.” The plan addresses both restructuring the company operations and re-fleeting. “Our fleet is getting older so the cost of keeping the aircraft flying is getting steeper by the day. We need to be renewing the fleet so that we can enhance our product and provide services we can’t now.” There i s a growing demand, he says, for business class services for example, and the in-flight comforts and refinements that the latest jets incorporate. Re-fleeting will happen over the next four The lounge at Gaborone
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years so that by 2020 all the planes will be new. “We expect to see our maintenance and fuel costs going down significantly. We’ll also have a more attractive product that will sell better and boost revenues,” he said. “We believe this plan will improve our profitability to a point where we will no longer be reliant on subsidies.” While he’d like to be able to purchase new aircraft that may not always be the best way to go. “In our current model we operate six aircraft,” he says. “We needn’t say that we will replace them all in the same financial year though. If market conditions are favourable an outright purchase might be the best mode of acquisition. If we are less sure about traffic growth we can go for an operating lease.” Botswana has the highest credit rating of any African country, so would have no trouble leasing on favourable terms. Addressing operational issues has to be done in partnership, he emphasises. The Civil Aviation Authority of Botswana (CAAB) manages the country’s airports, including Sir Seretse Khama International Airport at the capital Gaborone, and Francistown International Airport in the north east. A very close working relationship exists between these parastatals (government owned entities operating as commercial concerns), both reporting to the Minister of Transport. The government has every reason to support AB. In 2014 tourism contributed 6.4 billion Pula ($650 million) to the economy, said Dahwa. “Within that figure, about two billion is traceable
Welcome to Air Botswana
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A I R B O T S WA N A to high value tourists – the ones that would use air transport to come into Botswana, and who also use internal flights. We can thus claim to be facilitating a P2 billion impact on GDP. Even if the government subsidises our operations to the tune of say P100 million, that would be hardly five percent of our net contribution to the national economy! I think this is how a national airline should be measured.” Dahwa favours partnership with private operators in developing short routes that would not be operable using AB’s larger aircraft. A good example is the link between the popular tourist destinations Maun and Kasane. The hour long
Inside the lounge
Packaged Deals
One Stop Convenience Service Provider
Securing Your World
Cleaning Services Contract cleaning for offices, schools, shopping malls, universities, airports High rise window cleaning, carpets, domestic cleaning Facilities Management Services Financial: Full accounting services Utilities & Services (reading utility meters) Make payments within agreed parameters Maintenance & inspection of properties * Electrical * Plumbing * Carpentry Fleet Management Real-time vehicle tracking Efficiency & cost control Fuel usage reporting & management Time management Integration Monitoring driver behaviour Management reporting Secure Monitoring & Response Intercom systems Security alarms Portable panic buttons Electric fences Emergency medical alarms Fire alarms Visual alarm verification systems Illegal access signals Access control systems Facility & Fleet Managemnet CCTV Systems Cash, Assets Management & Secure Logistics
Cash Management Vaulting Asset & cash in transit services Deposita automated machines Integrated asset management ATM Services:- Replenishment, 1st line maintenance Key Security:- collection and delivery of strong room keys Security Products:- tamper evident bags, seals, coin boxes
Manned Security Customised security solutions Technology Integration Continual risk management Sector specialisation: mining, oil and gas, aviation, hospitality, telecoms, retail and financial Institutions Event security Secure mobility & close protection G4S (Botswana) Ltd Careers & Recruitment Sales Tel: (+267) 3698000 P O Box 1488, Gaborone Tel: (+267) 3698000 Tel: (+267) 3698000 Plot 20584, Western Bypass Fax: (+267) 3914124 Gaborone, Botswana, Africa Email: Head.office@bw.g4s.com Email: Sales@bw.g4s.com Email: recruitment@bw.g4s.com
Exceptional Service. Personal Attention. In order to provide comprehensive solutions to multi-faceted financial services industry requirements, and to deliver a strong client-focused approach across a range of insurance products, servicing corporates medium –size businesses and individuals in South Africa and the rest of Africa, the Pogir Group consists of four separate companies: Short Term Insurance, Healthcare Solutions, Employee Benefits and Life & Advisory.
Visit us online to find out more: www.pogirgroup.co.za St Andrews office park, Block A, Ground Floor 39 Wordsworth Avenue, St Andrews Bedfordview Tel: (011) 879 7200 | Fax: (011) 454 - 0581
S U P P LY C H A I N
flight is operated twice weekly by local operator Kalahari Air Services (KAS). AB underwrites the operating costs, and KAS maintains the route using its own aircraft. That is a model he would like to see replicated widely, as a way of bringing such places as the mining town of Orapa and the desert community of Ghanzi into the network. Such small operators need to be as strict in compliance and safety as AB itself, which is IOSA (IATA’s International Operational Safety Audit) checked every two years. A vital component in AB’s modernisation plan is the introduction of new ICT systems. “The present system is too manual. We lack world
“We believe this plan will improve our profitability to a point where we will no longer be reliant on subsidies” – Ben Dahwa
A BAe 146-100 regional airliner
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A I R B O T S WA N A
“We are part of the national team that is working on attracting international flights into the country” – Ben Dahwa
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class automation tools.” To address this an ERP solution will be implemented, linking every activity from operations, commercials, finance, maintenance, tracking of paperwork such as airworthiness certification and all customer facing processes. This is a critical phase, Ben Dahwa emphasised. Over the coming three to four years, in the same timeframe as fleet renewal, expenditure of P30 million ($3.5 million) has been budgeted for ICT alone, as the new system is implemented, module by module. “It is a big step so we need a transformational culture change,” he said. “My management team is driving that forward. We want to see efficiency and productivity going up and wastage, whether performance or equipment related, going down!” Downsizing will be minimal. Certainly fewer people will be needed to maintain existing levels
S U P P LY C H A I N
of work, but this should not mean involuntary redundancy. AB is in expansion mode and this will absorb most of the core workforce. Retraining and multiskilling will be needed: older workers will be retained to pass on their knowledge, then perhaps offered early retirement. It’s national policy to bring long-haul flights into Gaborone, though AB will itself stick to regional flights up to 2020, extending its network though code sharing arrangements with global carriers. “We are part of the national team that is working on attracting international flights into the country, in partnership with private business.” He said. “Botswana Investment and Trade Centre (BITC) Botswana Development Corporation (BDC); The Botswana Confederation of Commerce, Industry and Manpower (BOCCIM); Public Enterprises Evaluation and Privatisation Agency (PEEPA) Botswana Tourist Authority (BTA) - we all need long haul into Gaborone!” Additionally to becoming a passenger hub, providing feeder flights to the region, AB want to become a cargo hub for southern Africa. After all Gaborone is nearer to the industries of Gauteng than Cape Town or Durban. As the assigned ground handler, occupying the cargo terminal at Sir Seretse Khama Airport the company has invested P43 million ($4.36 million) in the latest cargo handling equipment. Once the final items have been delivered, AB will be able to handle the largest aircraft in the skies.
Company Information INDUSTRY
Aviation HEADQUARTERS
Gaborone FOUNDED
1972 EMPLOYEES
420 REVENUE
N/A PRODUCTS/ SERVICES
Air Botswana operates and maintains a fleet of BAE 146 as well as ATR42-500 and ATR72-500 advanced turbo propeller aircrafts which operate daily domestic and regional scheduled flights
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Juhayna Food Industries
Bringing World-Class Standards To Egypt Written by: Nye Longman Produced by: Kevin Holmes
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J U H AY N A F O O D I N D U S T R I E S
The Company’s unique approach to its operations has guaranteed it a leading position in the Egyptian juice, yogurt, and milk markets
P
ioneering the production of dairy and juice products for over three decades. Juhayna Food Industries is a leading Egyptian manufacturer that specialises in the producing, processing and packaging juice, milk, and yoghurt juice concentrate. During the past three decades Juhayna has succeeded in winning the loyalty of consumers who have come to view its wide variety of quality products as trusted household names. As a result of this steadfast determination to maintain its commitment to innovation the company has managed to achieve success in both the Egyptian market and as a regional exporter with consistently high rankings in market share for all of its products. Today Juhayna has a well-earned reputation as trendsetter in manufacturing, product innovation and marketing activities. Recent market studies indicate that Juhayna enjoys a level of brand awareness and trust that is significantly more pronounced than its
Juhayna launched its highly successful flagship natural yoghurt brand in 1987
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FOOD
Key personnel
Claus Pedersen Director of Marketing and Innovation
Jahayna Pure product. One of Juhayna juice portofolio with 100% concentrate
competitors in the Egyptian market. By building state-of-art industrial infrastructure, and with over 4,500 employees, Juhayna has steadily increased production capacity while developing and expanding its product range. Today the company has than 200 SKUs in the market which are all produced at six separate manufacturing facilities and distributed using a fleet of 1,000 trucks and vans, serving customers across Egypt. But the story does not end here: Juhayna is planning for further expansions in the coming years to secure healthy and high quality food products for Egyptians for decades to come. The Juhayna Group accounts for roughly 70 percent of Egypt’s milk market; it has a share of around 36 percent of the country’s yoghurt market, alongside holding a 25 percent stake in juice. Juhayna products are available to
Claus Pedersen has an MSc in International Business from the University of Alborg in Denmark; he started his career working for various consumer goods companies like LEGO, Akzo Nobel, Royal Unibrew and ARLA Foods. Claus has been working with marketing across more than 25 countries and before joining Juhayna he was GM of Arla Foods in Vietnam where he was responsible for setting up a rep office and launching a new range of child nutrition products.
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J U H AY N A F O O D I N D U S T R I E S
Perfect fit to your brand
Starting from one company in 1994, Rotogroup is now one of the leading companies in packaging and rotogravure printing in the Egyptian market with 3 companies specialized in different packaging sectors (Flexible packaging converting, film making, cylinders engraving, and corrugated boxes)
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FOOD
consumers all over Egypt through its extensive distribution network. This kind of countrywide success has been established through thirty years of focusing on setting global standards for its food products. As Marketing and Innovation Director, Claus Pedersen says: “Juhayna is an Egyptian company with global standards.” Juhayna’s success story began in 1983 with Safwan Thabet’s vision to provide his fellow Egyptians with healthy, high quality food products. During this journey the company has grown to control major market shares of the Egyptian juice, yoghurt, and dairy sectors, and has also acquired and established state of the art production capabilities. Its decades of hard work were recognised in 2014, when a study by AC Nielsen rated Juhayna as having Egypt’s highest
SUPPLIER PROFILE
“Juhayna is an Egyptian company with global standards” - Claus Pedersen Director of Marketing and Innovation
ROTOGROUP
Rotogroup is a family of 3 companies. Rotogravure industrial investment (Rotografia) is one of the leading companies in Egypt in flexible packaging & rotogravure printing field. With a capacity of 1100 tons/month, supplying most of the local and multinational brands as PepsiCo, Lays, Coca-Cola, Unilever, Nestlé, Danone, Lactalis, Juhayna, Edita, Almarai (Beity), Regina Pasta, and Misr Foods, moreover, Africa, Europe, US and Canadian markets. Misr Rotogravure for cylinders engraving and film production. Design and manufacturing of rotogravure cylinders with 800 cylinders/ month capacity, polyolefin and polyethylene with 250 tons/month capacity. Interpack for corrugated carton and boxes manufacturing, with 1100 ton / month capacity
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In 1993 Juhayna was also the first to launch ‘Light’ yoghurt in various sizes
1,000
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brand-equity-index score. When it was listed in the Egyptian Exchange Market in 2010, ‘Africa Investor’ dubbed it as the best African Initial Public Offering (IPO). Juhayna’s juice factory won the regional Arab Award of Quality in 2014. Strategic Operations The Juhayna Group is comprised of different subsidiaries, which enables it to deploy multiple operational capabilities across its product lines and beyond; in the past this has even acted as a buffer for the company in the face of globally adverse conditions. To supplement its state of the art manufacturing facilities, Juhayna utilises 24 distribution centres and over 1,000 vehicles through its subsidiary Tiba. Additionally, Juhayna’s Al-Enmaa company uses modern farming methods to breed dairy cows and grow cattle feed as well as fruit for juicing. Pedersen said: “In the long term it is securing a
FOOD
very strong supply of high quality raw materials.” Juhayna believes in the value of long term relations with both its suppliers and customers. Juhayna has been providing McDonalds with products for over 20 years; another good example of its long term focus can be seen in its sponsorship of Al Ahly Football club which began in 1998. Pedersen said: “It is rare to find this kind of commitment in today’s world, but you clearly feel this way of working in the company on a daily basis.” Technology Pedersen was proud to highlight Juhayna’s pioneering work in setting global standards across range of aspects, he said: “We were the first company to implement a fully automatic warehouse in Egypt and we are currently working on being the first to have environmentally focused packaging. All this is keeping the company in poll competitive position.” Instead of resting on its laurels, therefore, the company is seeking to implement the latest technology ahead of its regional rivals, and also to maintain a competitive stance with multinational companies with an interest in Egypt. Alongside fully automated manufacturing processes, Juhayna has recently equipped its sales team with the latest hand held digital mapping technology, which will enable them to track the progress of the company’s distribution fleet in real time, providing the best information possible to customers. Pedersen said: “Here, technologically, this is something that we need to support more and
Key personnel
Safwan Thabet CEO and Chairman Safwan Thabet has been Chairman of the Board of Directors and Chief Executive Officer of Juhayna since founding the Group in 1983. Mr. Thabet has left a distinctive mark on Egypt’s investment map, having played a central role in the development of the food sector for more than 30 years through various appointments and positions which he has held, including: - Member of the board of the Federation of Egyptian Industries (FEI) - Member of the board of the Chamber of Food Industries - Chairman of the board of the 6th of October Investors Association - Member of the board of Sixth of October Development and Investment (SODIC) Safwan Thabet holds a Bachelor’s Degree in Mechanical Engineering.
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Quality control at the El Dawlya factory
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FOOD
more. Currently we are the only one implementing this model, but other companies are looking at it; you just have to be ahead all the time.” Pedersen noted that with large scale growth comes a great responsibility to succeed in the future, he said: “Growth has usually been between 20 and 35 percent on a yearly basis, this has slowed down but still a very high level compared to other parts of the world. Therefore we are always planning to invest in new machines to cope with these opportunities. Flexibility is key in Egypt’s current business environment.” Progressive strategy In order to retain its commanding position in the Egyptian market, Juhayna applies the same global standards to its recruitment and human resources operations as it does to the technological and manufacturing aspects of the company. Juhayna not only aims to source the right person for the job, but also seeks to develop its people through a variety of training methods. Whilst Juhayna is first and foremost an Egyptian company, it is not afraid of dipping into the global talent pool to ensure that its operations stay at the very cutting edge of its industry. Pedersen said: “We are currently implementing a new skills program to make sure that, no matter what stage a person is at in their development, there will be a way for them to progress. It will be clear what skills people need; we are implementing a plan for
Juhayna’s flavoured drinkable yoghurt which was released to the market in 2001
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“It’s a big difference in an emerging market; it’s something for a leading company like us to take the lead. When the market is ready, we will already be there.” - Claus Pedersen
each employee individually.” Implementing a clear, linear career path not only gives employees a sense of direction, but also contributes to company-wide unity. Juhayna is involved in a range of Corporate Social Responsibility (CSR) initiatives, in line with what Pedersen dubs global standards in ethics. He continued, asserting that it was the duty of the company to lead the way, he said: “It’s a big difference in an emerging market; it’s something for a leading company like us to take the lead. When the market is ready, we will already be there.” The company is involved in CSR at every level, recognising that its impact
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can be on both the small and large scale; whichever endeavour the company is involved in, Pedersen and his team are always asking: “What can we do to make a difference?” The company has recently funded the renovation of outpatient’s clinics at Ain Shams Specialised Hospital, and has also made provision for free breast cancer screenings and follow up treatment at the centre. Health is an issue that has preoccupied the company’s ethos; not only does the company seek to make healthy products, it has also aimed to donate as much as possible to schools that would not normally afford them. Juhayna also has a long term contract with Tetra Pak and together they are working together to roll out recyclable packaging across all product lines, as well as using FSC compliant paper when possible. It is therefore evident that the company takes its responsibilities seriously on a deeper level, aiming to reduce its environmental impact through carefully implemented solutions. Juhayna has quite rightly been dubbed one of Egypt’s best companies in terms of the quality and availability of its products, but also for the work the company does in developing its employees and the communities it operates in. Its openness to new technology and techniques has cemented its place as a market leader and innovator for years to come. Having operated so successfully, it is ploughing its gains into making these endeavours sustainable for future Egyptians to benefit from.
Company Information INDUSTRY
Yoghurt, Milk, and juice HEADQUARTERS
6 October City FOUNDED
1983 EMPLOYEES
4,580 REVENUE
430 million euros PRODUCTS/ SERVICES
Food, Manufacturing, Food Distribution, Supply Chain, Food Technology
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