Business Chief Africa

AFRICA EDITION OCTOBER 2018 africa.businesschief.com

BICS THE RAPID GROWTH OF AFRICA’S MOBILE NETWORK

Sanlam’s digital transformation:

market solutions for the millennial generation

Promoting agility through digitisation

TOP 10

EXPORTING COUNTRIES IN AFRICA

Deputy CEO, Hennie de Villiers, discusses Sanlam’s adoption of strategic technology City Focus

IDEX

TRANSFORMING FINANCE FOR A CASHLESS FUTURE

KAMPALA

Driving growth through sound infrastructure

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WELCOME

H

ello and welcome to the October issue of the Africa edition of Business Chief!

Through significant digital transformation, Sanlam Personal Finance continues to provide cutting-edge market solutions for the millennial generation of customers. Our exclusive feature looks at how Sanlam places both the customer and technology at the heart of its operation in order to define the insurance industry of Southern Africa.

As more and more Africans turn to mobile usage in their day-to-day lives, BICS ensures that the network infrastructure is in place in order to embrace this rapidly expanding market.

In our exclusive interview, Old Mutual iWYZE details how it has developed a specific digital architecture to cater to its digital savvy customer base.

Across the African continent, more than $463bn worth of goods were exported in 2017. In our top 10, we take a closer look at the biggest exporting countries and the goods that support their economies.

In this month’s City Focus, we visit Kampala. Identified as a future mega city, Kampala is undergoing incredible growth through governmental refocusing and sound infrastructure investment.

Be sure to read our exclusive feature with Tekleberhan Ambay Construction PLC and how a company-wide transformation has seen it cement its position as the Ethiopian construction partner of choice.

Enjoy the issue!

Dale Benton. dale.benton@bizclikmedia.com

a f r i c a . b u s i n e s s c h i e f. c o m

03

CONTENTS

10 Sanlam: Leading innovation for tomorrow’s insurance customers

24

BICS – LAYING FOUNDATIONS FOR THE RAPID GROWTH OF AFRICA’S MOBILE NETWORK

36 IDEX — Transforming finance for a cashless future

48 City Focus

60

CONTENTS

74 Old Mutual iWYZE Tapping into an emerging millennial insurance market

88 MDESS A SUSTAINABLE LEGACY IN AFRICA

( MILLENNIUM DRILLING AND EQUIPMENT SERVICES SENEGAL )

98 TEK L EBERH A N A M BAYE C ONST R U CT I O N P. L . C . ( TAC O N )

HOW TACON REDEFINES ETHIOPIAN CONSTRUCTION

10

Leading innovation for tomorrow’s insurance customers WRIT TEN BY

DA LE BENTON PRODUCED BY

JUS TIN BR AND

OCTOBER 2018

TECHNOLOGY

11

a f r i c a . b u s i n e s s c h i e f. c o m

SANLAM PERSONAL FINANCE

Nasrat Edoo Sirkissoon (left) is a Senior Manager at Sanlam Enterprise Development in Durban. She plays a vital role in managing consultants who service businesses based on Sanlam’s innovative BlueStar model.

With her are Joy Bothma, BlueStar Support Assistant, and Mannie Kambourakis, Business Development Manager: SFA East Coast.

12

Through a digital transformation, Sanlam continues to provide cutting-edge market solutions for the millennial generation

T

he strategic adoption of technology in the insurance and personal finance industry

is being driven by a commitment to meet and exceed customer expectations and deliver high levels of service.

The industry has quickly recognised the compelling need for digital innovation as a defining and redefining factor to its success and survival.

OCTOBER 2018

TECHNOLOGY

13

“Technology has always been a key

of technological capability from an

part of the financial landscape,” says

insurer as we would from a bank, telco

Hennie De Villiers, deputy CEO of

or another service provider.”

Sanlam Personal Finance – the retail

Sanlam has, since 1918, strived to

unit of leading African insurer Sanlam.

be the leader in client-centric wealth

“Yet, things have shifted significantly

creation, management, and protection

over the years with technology playing

in South Africa, but it is also a global

an increasingly important role in our

insurer with an international footprint

day-to-day lives. This means that, as

in 30 African countries amongst others.

a population, we expect the same level

Adept at servicing customers and a f r i c a . b u s i n e s s c h i e f. c o m

TECHNOLOGY

with an accomplished track record,

our customers – even millennials – still

Sanlam has realised the importance

require an element of human interaction,

of embracing technological shifts to

even as we move further away from it. So,

continue to deliver and exceed its

the experience of implementing digital

customers’ expectations.

innovation varies across industries.”

For de Villiers, a point of departure

Sanlam is driving a company-wide

was to consider customers’ experiences

digital transformation that will see it

in other industries. “It is increasingly

fully embrace the technologies of today

important for us to be able to compete

and tomorrow in order to deliver the

with the best experiences our customers

most effective and seamless insurance

have elsewhere. We acknowledge that

services to modern-day customers.

they want the same experience from

As an insurance services provider,

insurance as they expect from their cell

the company engages a number of

phone provider and their bank,” he says.

different stakeholders, from intermedi-

“Yet, while there is this common pursuit

aries and internal staff through to the

of digital enablement, insurance differs

customer. These stakeholders will

slightly from other industries in that

all shape and influence the company’s

E X E C U T I V E P R OF IL E

Hennie De Villiers With a career spanning over 30 years, Hennie De Villiers has lived and breathed technology and leadership with Sanlam. In a dual role, as both Chief Executive of Sanlam Individual Life and Segment Solutions and Deputy CEO of Sanlam Personal Finance, De Villiers responsibilities cover Sanlam’s offering to the Growth, Small Business and Professional markets. He also oversees SPF Acturial, SPF IT and SPF Business Change.

a f r i c a . b u s i n e s s c h i e f. c o m

15

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TECHNOLOGY

Andre Schutte (Solutions Specialist at Glacier) helping intermediaries become familiar with the Glacier Investment Hub – a platform that allows intermediaries to engage on-line with their clients, from the initial proposals to the electronic signing of applications and instructions.

17

“ We need to ensure that people are empowered and enabled” — Hennie De Villiers, Deputy CEO of Sanlam Personal Finance

digital transformation, yet for De Villiers there is an elementary core goal at the heart of the business’ digital transformation strategy. “It’s about how we can make the experience for customers so simple, so enjoyable and so pain- free, that they will want to continue doing business with us.”

While Sanlam acknowledges this strategic imperative, it’s not all plain sailing as technological transformation can typically present a number of challenges, particularly to a business that’s been in operation for over a century. A key challenge has been the a f r i c a . b u s i n e s s c h i e f. c o m

SANLAM PERSONAL FINANCE

company’s legacy infrastructure

Intermediaries interacting with the Glacier Investment Hub at its launch

and systems, and De Villiers contends that this challenge is probably unsurprising for an insurance provider of Sanlam’s tenure. This presents its own unique hurdles and De Villiers believes the answer to overcoming these obstacles is to place a great deal of investment in the company’s most important asset — its people.

“You’re used to doing things 18

a certain way, but life, and most certainly business, moves so fast that we have to embrace change, experiment and take risks. This requires a change in culture,” he says. “One of the ways in which we ensure that the organisation embraces change collectively is through continuous staff engagement from the top through to every level of the business.”

This approach, he feels, is crucial in order to implement technology and empower employees to open their minds to this changing landscape. It allows employees to

OCTOBER 2018

Members of Glacier’s IT development team showcasing the Glacier Investment Hub to intermediaries

TECHNOLOGY

CLICK TO WATCH : ‘SANLAM TVC – THE 200-YEAR LIFE’ 19 recognise and understand their role, not only in the organisation of today, but the one of tomorrow.

“We need to ensure that people are empowered and enabled,” he says. “Technology is complex and there is no silver bullet for us, but we have motivated and incredibly hard-working employees and so continuous engagement really brings people along.”

With the technology conversation defined by buzzwords such as Artificial Intelligence (AI), Robotic Process Automation and Data Analytics some companies may fall into a trap of investing in these technologies for

a f r i c a . b u s i n e s s c h i e f. c o m

SANLAM PERSONAL FINANCE

20

the wrong reasons in order to ‘keep up’ with the industry. De Villiers recognises this and understands that in order to grow in the right direction, Sanlam has to embrace appropriate technologies. “We will always base our technology decisions on whether we believe it will have a specific strategic value for us or if it will help us to achieve a specific OCTOBER 2018

“ We expect the same level of technological capability from an insurer as we would from a bank, telco or another service provider” — Hennie De Villiers, Deputy CEO of Sanlam Personal Finance

TECHNOLOGY

After-sales service to clients and intermediaries is what Nozipho Nkonki (front), First Line Manager, and her team in the SPF Client Care Centre at Sanlam Head Office do best. Next to Nozipho is Ivannah Davids. At the back (from left) are Lebo Tamose, Renier Jacobs, Tandokazi Mkaleni and Nyameko Fana.

21

strategic outcome,� he says.

To this end, Sanlam has been able to call on the invaluable support and

Sanlam develop the internal skills needed to drive digitisation. “South Africa is an emerging market

experience of a key strategic partner

with growing skillsets. Zensar has

in Zensar. Zensar is a leading digital

done a tremendous amount of work

solutions and technology services

with us in assisting to develop those

company that specialises in partner-

critical skillsets through a number of

ing with global organisations across

programmes and training opportunities.

industries on their digital transforma-

This has really been a key element that

tion journey. Coupled with this,

has allowed us to both focus on, and

Zenzar also helps companies like

enable, the technology implementation.� a f r i c a . b u s i n e s s c h i e f. c o m

SANLAM PERSONAL FINANCE

From left are Daphne Jacobs, Sherezaan Petersen, Denver Sedgwick and Melanie de Kock from the Sanlam Client Care Centre after the introduction of the first ‘digital recruit’; robotic technology programmed to perform repetitive tasks that can be automated.

22

OCTOBER 2018

TECHNOLOGY

Technology and digital transformation is an ever-evolving process and Sanlam cannot rest on its laurels. It has to be mindful of the future and how the technology trends of today can and will influence the industry of tomorrow.

Regardless of where the next shift in innovation comes from, Sanlam will continue to ensure that it provides the best possible service to its clients and customers.

“Whatever the future holds for us, I believe it is critical for our technology adoption to be in line with our strategy,” he says.

“It needs to help us to really win the battle for the customer and ensure that we engage them at a level that will make them loyal and persistent - with no desire to go anywhere else.”

a f r i c a . b u s i n e s s c h i e f. c o m

23

LEADERSHIP

24

OCTOBER 2018

LAYING FOUNDATIONS FOR THE RAPID GROWTH OF AFRICA’S MOBILE NETWORK 25

As more and more Africans turn to mobile usage in their day-to-day lives, BICS ensures that the network infrastructure is in place in order to embrace this rapidly expanding market WRITTEN BY

DALE BENTON

a f r i c a . b u s i n e s s c h i e f. c o m

LEADERSHIP

A

cross Africa, particularly sub-Saharan

Africa, the mobile phone market is exploding. According to a report from

Ericsson Mobility, Long-Term Evolution (LTE) subscriptions are set to expand by 47% to

310mn by 2023 in Sub-Saharan Africa alone.

With more and more people using mobile phones to handle payments, voice communication and online browsing, only one such company currently provides the necessary infrastructure to enable such rapid growth.

With more than 120 access points-of26

presence worldwide, capacities of multiple 100GB and participation in 20 submarine cables, BICS is well and truly a global business – and one of the company’s biggest and most dynamic markets is Africa.

“Africa is a very dynamic continent with a lot of creativity and entrepreneurship,” says Clémentine Fournier, BICS Regional Vice President, Africa. “The role of the telecoms (mobile) sector is very important in the continent – much more so than in developed markets. Mobile phones are used for far more than basic voice communications, including things like mobile payments which can be critical in those regions that lack the kind of infrastructure you find in more developed areas.”

OCTOBER 2018

FA C T

Long-Term Evolution (LTE) subscriptions are set to expand by 47% to 310mn by 2023 in Sub-Saharan Africa alone

27

a f r i c a . b u s i n e s s c h i e f. c o m

LEADERSHIP

CLICK TO WATCH : ‘BICS — CONNECTING THE WORLD, ENABLING VALUE’ 28

With more than 120 mobile operators

Fournier feels, fosters greater collabo-

using the company’s infrastructure

ration and service provision to its

network in Africa, the continent

clients, local partners and end users.

represents a key market for BICS.

“With our broad range of IP and

The company has points-of-presence

Carrier Ethernet services, we provide

(PoPs) in Nairobi, Johannesburg,

carriers and communication service

Lagos, Djibouti, Port Louis and

providers with point-to-point data

Mauritius, all built on a robust mesh

services and access to the IPX

of subsea cable systems.

(Internetwork Packet Exchange)

BICS invests significantly in its

community, which has enabled

‘human presence’ throughout Africa,

operators to increase their network

having opened up local entities

availability and improve quality of

in Ghana, Kenya and South Africa in

service for customers,” explains

order to be closer to the market. This,

Fournier.

OCTOBER 2018

“ I believe there is huge potential in developing roaming services in Africa, especially for data roaming” — Clémentine Fournier, BICS Regional Vice President, Africa

of parties, but mobile operators represent most of our customers in Africa. Without a carrier like us, international calls and roaming services would not work,” says Fournier.

As a (transit) carrier, BICS is an intermediary between two mobile operators and their respective subscribers for all their international communication needs (voice, messaging, roaming, etc.) “We share strong common interests with our customers and I like to say that we’re in the same boat: when our volumes and revenues are increasing, our customers’ volumes and revenues are also increas-

BICS invests heavily, either directly or via partnerships in key markets

ing and vice versa.”

In most of its African markets, BICS

(Kenya, Nigeria and South Africa) to cre-

purchases more from its customers

ate PoP ‘hubs’ to surrounding countries.

in monetary value than it sells. This is

As Fournier notes, these countries were

achieved though terminating calls and

chosen not purely because of their

text messaging into customer networks

location but also because they provide

within which BICS pays fee/airtime

sufficient regulatory and political stability.

(i.e. a price per minute). This, Fournier

Key to this investment are the

feels, creates a relationship that goes

relationships it strikes with strategic

far beyond that what is expected of

partners, and more so how it fosters

a typical vendor-customer kind.

and develops these relationships long

This is proving increasingly important

into the future. “We offer critical

in Africa, where the falling cost of

communications services to a variety

mobile devices and subscription plans a f r i c a . b u s i n e s s c h i e f. c o m

29

LEADERSHIP

have democratised internet access and thus unlocked a wealth of opportunity for BICS to explore and capitalise on. “It’s exciting to continuously look for creative solutions to mitigate the decrease in revenue from providing voice services – which has traditionally been our customers’ core and legacy business. Personally, I believe there is huge potential in developing roaming services in Africa, especially for data roaming.”

With more and more Africans now 30

reliant on mobile phones, be it basic voice communications or mobile payments and other financial services, there is an inherent increase in the risk of fraudulent activity.

After all, with more users comes more data that is more accessible than ever before. To this end, BICS has partnered with FraudGuard, a global anti-fraud crowdsourcing platform which supports a proactive, collaborative approach to prevention and authentication. “This proactive approach reduces the time and cost required to react to fraud attempts, protecting operators’ networks, subscribers and reputation,” says Fournier.

OCTOBER 2018

“ Africa is a very dynamic continent with a lot of creativity and entrepreneurship” — Clémentine Fournier, BICS Regional Vice President, Africa

The platform monitors global traffic on our infrastructure and highlights potential issues, as well as allowing customers to share instances of fraud on their own networks. “We’re working to transform what has traditionally been a closed-off, secretive topic, to something the industry can work on together to the benefit of all.”

The company’s work in cybersecurity doesn’t end there: BICS also partners with Local SMS Firewall, which manages all A2P (application-to-person) and P2P (person-to-person) activity, implementing an SMS Firewall product to reduce and block instances of spamming, fake messages and the flooding of messages, and a Voice Roaming Firewall to help block fraudulent outbound roamer voice call attempts in real time before the fraudulent call is made.

“Africa is a hugely varied continent, with some countries lacking strict (or effective) regulations and governance – including of the telecoms industry.

This makes policing fraud even more difficult,” says Fournier. “Our platform allows for the sharing of resources and knowledge to prevent instances of fraud, something which is of particular a f r i c a . b u s i n e s s c h i e f. c o m

31

LEADERSHIP

“Mobile phones are used for far more than basic voice communications, including things like mobile payments which can be critical in those regions that lack the kind of infrastructure you find in more developed areas” 32

— Clémentine Fournier, BICS Regional Vice President, Africa

importance to those regions where these are lacking.”

much concern among operators.

“All actors in the chain are affected:

The rise of instant messaging

the mobile operators, the carriers and,

platforms such as WhatsApp and

indirectly, the African governments

Facebook Messenger, the most

which see their revenues from

popular messaging services used in

international taxes decreasing,” she

Africa, reflects a wider trend which has

says. “In contrast to other markets, the

seen subscribers move away from

increase of data usage linked to OTTs

basic SMS and towards more feature-

does not offset the revenue loss from

rich OTT (over-the-top) communica-

international calls.”

tions services. This is a situation which has – understandably – caused OCTOBER 2018

It’s not just infrastructure network that BICS brings to Africa. Fournier notes

33

that BICS is an international company

“Most importantly for me, there is

offering challenging opportunities

a close-knit and collaborative atmos-

in dynamic markets, which ultimately

phere among colleagues – many of us

empowers the people of Africa.

meet also after work for social activities,

“We are one of the world leaders in

and some have even met at BICS and

our industry, and many of my colleagues

gone on to get married! All this makes

are renowned experts in their domain

our team keen to stay part of the

and highly skilled in providing valuable

‘BICS family’.”

expertise to our customers. This gives

This will ultimately prove key for BICS

younger colleagues on-the-job learning

as it continues to enable and define the

opportunities, in addition to a lot of formal

mobile phone market throughout the

internal training,” she says.

Africa of today and tomorrow. a f r i c a . b u s i n e s s c h i e f. c o m

Covering every angle in the digital age The Business Chief platforms offer insight on the trends influencing C and V-level executives, telling the stories that matter Click to read

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TECHNOLOGY

36

Transforming finance for a cashless future As society becomes cashless and emerging markets demand financial access, IDEX is poised to transform the way we pay. Business Chief spoke to CEO Stan Swearingen to find out how WRITTEN BY

OCTOBER 2018

OLIVIA MINNOCK

37

a fri c a .busi ne ssc hief. com

TECHNOLOGY

H

aving made his career at the fore of some of the most pervasive technology innov-

ations of this century, Stan Swearingen is

no stranger to working with market makers.

From Bluetooth to WiFi to touchscreen technol-

ogy, Swearingen has witnessed the earliest stages of current technology mainstays. That’s why he decided to come out of retirement and put his weight behind one more innovation: biometric technology that facilitates payment verification with just a fingerprint.

Notably, in addition to serving at mobile device management developer Amtel and semiconductor 38

revolutionary Rohinni, Swearingen was previously CTO at Synaptics, the company behind the touch technology which Apple brought into the mainstream with its MP3 players, mobile phones and tablets. Now Swearingen is back for what he describes as “one more career-defining role to create a new market”.

“Part of that experience is seeing the point where you’re pushing something, an idea, and you meet resistance… even when we were developing WiFi people were saying ‘No, I don’t get it’ or ‘here are all the reasons why it won’t happen’,” Swearingen reminisces. “At the front end of an emerging market the supply chain forecast is very conservative, but once that inflexion point happens, it explodes and the volume goes through the roof.”

OCTOBER 2018

“ At the front end of an emerging market the supply chain forecast is very conservative, but once that inflexion point happens, it explodes and the volume goes through the roof” — Stan Swearingen, CEO, IDEX

39

a fri c a .busi ne ssc hief. com

TECHNOLOGY

40

This is what Swearingen strongly

global user base. For Swearingen,

believes is set to happen with biomet-

it’s not a question of when or if, but

ric technology in 2019. Soon, he argues,

how, biometrics will explode in the

PIN verification (and its now compara-

market. “What’s important is how you

tively archaic predecessor, swipe and

prepare yourself for that transition

sign) is set to become a thing of the

as a company,” he says.

past in favour of a fingerprint connect-

As with Synaptics and Apple, it takes

ed to payment cards, allowing the user

a technology developer coupled with

to verify payments at the point of sale

a market maker to bring about the

with just one touch.

Next Big Thing, and IDEX has found

He’s not alone: IDEX has partnered

a symbiotic partner in Mastercard.

with financial services giant Master-

“Mastercard is the market maker,” says

card, which is excited to roll out the

Swearingen. “We’ve been working with

new fingerprint technology across its

them on the total experience, not just

OCTOBER 2018

“ As society moves to a more cashless approach, reinventing the credit card with biometrics is a critical part of making that transition a reality” — Stan Swearingen, CEO, IDEX 41

technology – we are a solutions provider

print is unique to you and it’s not

partnered with a market maker.” When

something somebody’s going to guess

the CEO joined the company in 2016,

or look at over your shoulder. I think

IDEX had the perfect combination of

customers in general are even more

market maker, value proposition and

savvy regarding the dark web and

knowledge of systems and biometrics.

identity theft, and people just want to

With a plethora of fast and easy pay-

make sure their hard-earned money

ment options on the market, what is so

isn’t spirited away by somebody doing

special about the biometric element –

fraudulent acts.”

aside from the theatrical appeal of

In addition, IDEX has ensured

paying with a fingerprint? Security, of

biometric ID technology can be quickly

course, takes centre stage. “You get

deployed, with remote enrolment

a physical, unique connection with your

available for card users. “You get a card,

card,” Swearingen explains. “A finger-

you take your fingerprint and it creates a fri c a .busi ne ssc hief. com

TECHNOLOGY

42

OCTOBER 2018

a template which is stored in

users feel versus other methods,”

secure memory inside the card,”

he adds.

he explains. “There are multiple

While the end user is always

ways to do that. The first instance

top of mind, merchants will need

would be going into your branch

convincing that this new POS

and putting your finger into an

technology is necessary – but

optical reader, but IDEX and

Swearingen doesn’t think this

Mastercard saw that as an inhibitor

will be a problem. “Mastercard

to mass deployment, so we came

and the like are interested in

up with remote enrol, involving

frictionless transactions: easy

a simple plastic sleeve that is sent

and intuitive so the customer

in the post along with the card.”

isn’t worried about security or

When it comes to payment

anything that might cause them

methods, security goes hand-in-

to think ‘I was going to buy this

hand with convenience. “If you

item but maybe I won’t’ – obvi-

look at how someone grabs

ously the retailers want this to be

a credit card, ergonomically

frictionless as well. It’s a unified

it’s a natural movement,” says

goal. As society moves to a more

Swearingen. “They don’t have

cashless approach, reinventing

to learn something different. It’s

the credit card with biometrics is

so intuitive.” This more secure

a critical part of making that tran-

option is also set to reduce the

sition a reality.”

necessity for things like payment limits for contactless cards.

“With fingerprint, this will go away.

You don’t need a limit or to re-enter your PIN. We’ve done many pilots with Mastercard and the feedback has been overwhelmingly

— Stan Swearingen, CEO, IDEX

positive about how easy it is to use and how much more secure a fri c a .busi ne ssc hief. com

43

TECHNOLOGY

In addition, IDEX’s work will help to promote financial inclusion for those in underbanked areas. “There’s a lot of people who can’t bank today because they don’t have government ID or the things necessary to get an account – biometrics will help solve that problem as financial institutions will know the person they’re issuing the card to is a real person.”

Looking to the future, Swearingen anticipates that rolling out the new technology will be similar to marketing previous concepts that seemed radical.

44

Developers like IDEX often take on more of a systems role. “You have to engineer the total solution, so we did a reference design. We did all the hard work: the hardware, software, everything so that card manufacturers could quickly come up to speed and sample products.”

Already, IDEX has partnered with Taiwanese smart card solution provider JINCO and Chinese contactless card developer Feitian. “You’ll see more announcements imminently of different Tier-1 partnerships not just in China, but throughout the Asian supply chain.

JINCO and Feitian have brought technical, manufacturing and channel OCTOBER 2018

“ A fingerprint is unique to you and it’s not something somebody’s going to guess or look at over your shoulder” — Stan Swearingen, CEO, IDEX

sales abilities,” says Swearingen, adding that JINCO’s access and insurance cards business and Feitian’s tokens business will help IDEX to develop across different verticals.

IDEX has already made strides, especially in emerging markets where e-payment systems are leapfrogging the likes of the US, and to Swearingen this is evidence of the same take-off point he saw with the likes of Bluetooth.

“We’re preparing for what we believe is this inflexion point where the demand is just going to skyrocket. We have to be prepared to support many customers and make sure we have all the tools, documentation and talent necessary,” says the CEO, who expects millions of biometric units to have been deployed by the end of 2019.

Indeed, recent studies supported by IDEX outlined that 90% of customers would switch card issuer to one offering biometric technology if their incumbent did not. “The likes of Mastercard, Visa, American Express… biometrics is a vehicle for them all to take share from one another,” Swearingen concludes.

“For IDEX, this coming year is all about scale and making sure our supply chain has all the technical support needed.” a fri c a .busi ne ssc hief. com

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CITY FOCUS

City Focus

48

OCTOBER 2018

Identified as a future mega city, Kampala is undergoing incredible growth through sound infrastructure investment WRITTEN BY

DALE BENTON

49

a f r i c a . b u s i n e s s c h i e f. c o m

C I T Y F O C U S | K A M PA L A

O

ver the last seven years, Uganda’s capital of Kampala has undergone a radical transformation. In 2011,

the Kampala Capital City Authority (KCCA) took over the management of the whole city on behalf of central government and did so with a simple mission: to be a vibrant, attractive and sustainable city. How has KCCA strived to achieve this? Through the provision of quality services to the city via significant investment into key areas of growth, transport and road infrastructure, physical planning, health and education, 50

production and community services.

As KCCA nears its eighth year in charge, there are clear signs that the investment and the development it has put into the city is paying off. In April 2018, The World Bank Group said that Kampala is projected to become a mega city of more than 10mn people by 2040. Kampala’s current population as of 2018 sits at an estimated 1.35mn people, highlighting the ambition of KCCA’s transformation plan and the scale of work that lies ahead. “There is a renewed sense of responsibility and love for the city,” says Jennifer Semakula Musisi, Executive Director, KCCA, “We want to go beyond providing the basics to our people in the city. We are

OCTOBER 2018

‘WITH JUST UNDER TWO YEARS REMAINING, KCCA CAN ALREADY POINT TO SIGNIFICANT MILESTONES AND SUCCESSES THAT SERVE TO HIGHLIGHT THAT KAMPALA IS INDEED GROWING IN THE RIGHT DIRECTION’

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C I T Y F O C U S | K A M PA L A

counting on the public that the spirit of

initial three-year delivery schedule,

partnership multiplies in many Kam-

the $33.6mn project would first tackle

pala residents’ hearts to move our city

institutional outcomes in order to

to another level.”

build a “solid foundation for expanding the focus on future infrastructure

THE ROAD TO A NEW CITY Historically, Kampala’s road network

52

investments”.

This is where the KCCA was born;

has been perceived as incredibly

after years of significant investment to

below par with most of the roads lead-

establish a more robust city council,

ing into, and surrounding, the city

one that is defined by public consulta-

blighted by potholes and poor street-

tion in order to foster and develop

lighting. With the support of The World

a greater Kampala.

Bank Group, the then Kampala City

In 2015, empowered by a more

Council created and began work on

structured and focused government,

the Kampala Institution Infrastructure

KCCA launched part two of the KIIDP

Development Project (KIIDP). In an

to focus on the rehabilitation of the

CLICK TO WATCH : THE DOCUMENTARY — ‘ENHANCING THE ECONOMIC PULSE OF THE CITY’ OCTOBER 2018

city’s infrastructure in order to improve the provision of critical services to

modal urban transport masterplan.

Part two of the project will continue to

a number of priority areas. This five-

follow in the footsteps of the first KIIDP in

year project, which will see a total

developing and supporting institutional

investment of $183.7mn, is defined by

systems, thus strengthening KCCA’s

two components. Part one will see the

capacity to deliver on its infrastructure

KCCA widen, upgrade and construct

mission. This will see KCCA establish

city roads, junctions, drainage and

automated registers for properties and

associated infrastructure. This will

roads, construct a Traffic Control Cen-

include upgrading gravel roads to tar-

tre, locate and name all premises and

mac, converting a number of roads into

roads within the city, and streamline all

dual carriageways and preparing a multi

Revenue Management Systems.

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C I T Y F O C U S | K A M PA L A

$384mn Market Cap, Stanbic Bank Uganda

10%

of Uganda’s population lives in Kampala

1.35mn Approximate population

54

OCTOBER 2018

‘ROKO HAS DELIVERED A WIDE RANGE OF PROJECTS THAT DEFINE BOTH KAMPALA AND UGANDA AS A WHOLE’

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C I T Y F O C U S | K A M PA L A

With just under two years remaining, KCCA can already point to significant milestones and successes that serve to highlight that Kampala is indeed headed in the right direction.

In March of 2017, KCCA reported that as a result of its reformed tax collecting initiative (as part of KIIDP) it had generated around $3.9bn in revenue which represents a 20% increase in the two years since it was implemented. This was largely achieved through the automation of all revenue sources. This is 56

where the KCCA benefits from the institutional support component of the KIIDP, as the increased revenue from tax will be invested into future infrastructure development.

THE ROAD TO ECONOMIC PROSPERITY STARTS HERE As KCCA continues to invest and accelerate Kampala’s growth in order to unlock its future potential as a mega city, its current economic landscape isn’t something to ignore. The city represents 10% of the entirety of Uganda’s population, a third of the gross domestic product and hosts 46% of all formal OCTOBER 2018

“THERE IS A RENEWED SENSE OF RESPONSIBILITY AND LOVE FOR THE CITY” — Jennifer Semakula Musisi, Executive Director, KCCA

employment in the country. Kampala, quite clearly, is a key city for employment opportunities and economic growth for the wider country.

MTN UGANDA The largest telecom company in Uganda, MTN Uganda has around 11.2mn subscribers connected to its network and is housed firmly in the heart of Kampala.

As the telecom and infrastructure network sector continues to expand across the whole of Africa, coupled with the rise and rise of Africans going online in recent years, MTN Uganda continues to provide data solutions and services, reaping the benefits of growing demand.

STANBIC BANK With a market cap of around $384mn,

Minister for Kampala, Beti Kamya, tours Kampala city’s business community and work spaces in the Central Business District

Stanbic Bank Uganda Ltd is one of the Uganda’s largest commercial banks by assets and branch network. The company is one of the oldest banks in Uganda, having been founded back in 1906 as the National Bank of India.

Today, its total asset valuation stands at approximately $1.3bn when considering its wider African footprint. Stanbic Bank has a core mission that firmly a f r i c a . b u s i n e s s c h i e f. c o m

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C I T Y F O C U S | K A M PA L A

Xxxxxxx

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OCTOBER 2018

aligns it with Uganda’s growth strategy: to transform lives for a better Uganda.

ROKO CONSTRUCTION (ROKO) Key to any infrastructure development is a sound and efficient civil engineering and construction company and ROKO Construction fits the bill. ROKO was founded in 1969 and today stands tall as one of the leading constructions and civil engineering groups in Uganda. Its founders, Max and Rainer Kohler, built ROKO to “assist in Uganda’s prosperity and development”. ROKO has delivered a wide range of projects that define both Kampala and Uganda as a whole, including a $15mn refurbishment project of Ministries Buildings Juba for the Government of South Sudan, the $8mn construction of the US Embassy in Rwanda, and the $2mn construction of the taxiway at Goma Airport in the DRC.

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T O P 10

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OCTOBER 2018

Top 10 exporting countries in Africa WORTH MORE THAN $463BN IN 2017, AFRICA’S EXPORT INDUSTRY IS ONE OF THE BIGGEST IN THE WORLD. WE LOOK AT THE TOP 10 EXPORTING COUNTRIES, AND THE GOODS THAT SUPPORT THEIR ECONOMIES WRITTEN BY

DALE BENTON

a fri c a .busi ne ssc hief. com

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T O P 10

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10 Ghana $11.4bn (2.5% share of all African exports) With two ports, the 3,900 sq km Tema Harbour and the Takoradi Harbour (the main export port of the country), Ghana’s exported goods represent 40.3% of total Ghanaian economic output. The country’s biggest export is gems and precious metals. Ghana is Africa’s largest gold producer. Total gems and precious metal exports had a value of $3.5bn and represented 34.4% of total exports. Closely behind this is mineral fuels including oil, accounting for $2.6bn representing 25.4% of total exports. The third largest export is cocoa, at $2.5bn which represented 24.4% of all exports in 2017.

atlas.media.mit.edu OCTOBER 2018

63

09 Tunisia $14.2bn (3.1% share) Tunisia boasts 16 ports in total, notably the Port of Tunis, Sfax, La Skhirra and Didon Terminal. Tunisia’s biggest export is electrical machinery and equipment, accounting for $4bn and 28.4% of total exports. The closest behind this is clothing and accessories (excluding knit or crochet), with $2.2bn in exports representing 15.5% of all goods. The third biggest export, is knit or crochet clothing and accessories at $893.3mn, representing 6.4% of all exports.

www.ommp.nat.tn

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T O P 10

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08 Libya $17.8bn (3.8% share) With a seaport dating back to the sixth century BC, and a capital city dubbed ‘Bride of the Sea’, the export industry is key to Libya’s economy. Its highest export is mineral fuel including oil. At $17.2bn, it accounts for 96.8% of the country’s entire exported goods. This is followed by iron and steel exports, with a significantly lower $151.6mn (0.9%) and copper at $87.7mn (0.5%).

OCTOBER 2018

65

07 Morocco $25.6bn (5.5% share) Morocco is home to five ports: the Port of Al Hoceima, Casablanca, Essaouira, Safi and Tangier. The largest, and most famous, is the Port of Casablanca. Casablanca’s port handles more than 21mn tonnes of traffic annually. Its greatest export is electrical machinery and equipment, which had a 2017 export value of $4.2bn and accounted for 16.5% of total exports. At $3.4bn, and accounting for 13.3% of total exports is vehicles. The third largest export are fertilisers, with $2.6bn at 10.1%.

www.anp.org.ma

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T O P 10

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06 Egypt $25.9bn (5.6% share) A country boasting seven ports in total, the true jewel of the Nile for Egypt is the Port of Alexandria. Sitting on the West Verge of the Nile Delta between the Mediterranean Sea and Mariut Lake, it is considered the main port of Egypt’s entire foreign trade. Mineral fuels, including oil, hold the largest share of exports with $5.1bn making up 19.5% of total exports. The second biggest sector is gems and precious metals at $2.1bn, accounting for 8.2% of all exports. The third largest volume of exported goods is electrical machinery and equipment, with $1.7bn making up 6.7% of all goods.

www.apa.gov.eg OCTOBER 2018

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05 Angola $34.8bn (7.5% share) Angola has four ports, with its main port being Luanda. Luanda handles more than 70% of the country’s entire import/exports.

Luanda is the capital and largest city in Angola, and the country’s most populous and important city, primary port and major industrial, cultural and urban centre. Its largest export sectors include mineral fuels and oil ($32.3bn representing 95.6% of total exports), gems and precious metals at $1.2bn (3.5%) and machinery including computers at $46.4mn (3.5%).

www.portoluanda.co.ao

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T O P 10

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04 Algeria $35.2bn (7.6% share) Algeria has 12 ports, with the port of Algiers being the first ever commercial port in the country. The country’s highest volume of exported goods is made up of mineral fuels including oil, with a value of $33.8bn accounting for 96.1% of all exported goods. The second largest export sector by some margin is inorganic chemicals at $382.9mn, representing just 1.1% of all exports. The third largest at $327mn, accounting for 0.9%, are fertilisers.

OCTOBER 2018

69

03 Nigeria $44.5bn (9.6% share) The major ports of Nigeria include: the Lagos Port Complex and Tin Can Island Port in Lagos; Calabar Port; Delta Port; Rivers Port at Port Harcourt; and Onne Port. Nigeria’s largest exported goods sector is mineral fuels including oil, with $39.1bn in exports representing 96% of its entire exports. The second largest exported goods sector was ships and boats, accounting for 0.6% of all exported goods. Nigeria’s third largest exported goods industry was cocoa, accounting for 0.6% of all exports with a total value of $238.1mn.

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T O P 10

02 Guinea $62.1bn (13.4% share) There are two major ports of Guinea, Conakry and Port Kamsar. Port Conakry is the larger of the two, with a full container 70

storage capacity of around 8,000 twentyfoot equivalent unit (teus) and a maximum annual capacity of around 600,000 teus.

The country is a leading exporter of bauxite and holds the mineral’s largest reserve in the world. Guinea’s bauxite/aluminum ore ($990m) and gold exports ($1.54bn) represents around 85% of all exports from the country. The company also exports, Petroleum Gas ($154M), Non-fillet Frozen Fish ($43.2M) and Crude Petroleum ($41.9M).

www.bollore-ports.com

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T O P 10

01 The Republic of South Africa

$88.3bn (19.1% share) South Africa is situated on one of the busiest international sea routes and the South African Government has identified the country’s ports and terminals as key economic drivers of growth. It has eight ports, with the port of Durban representing the largest and busiest shipping terminal in sub-Saharan Africa. In 72

2017, South Africa’s largest exported goods sector was gems and precious metals, with a total value of $14.9bn accounting for 16.7% of total exports. The republic’s other exports are significantly higher than in other African countries, with the 10th largest export sector (beverages, spirits and vinegar) still coming in at $1.4bn. The second largest export sector was ores, slag and ash at $11.3bn, accounting for 12.6% of all exported goods. The third largest export sector was mineral fuels including oil at $10.6bn, representing 11.8% of all exported goods.

www.transnetnationalportsauthority.net

OCTOBER 2018

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Tapping into an emerging millennial insurance market WRIT TEN BY

CATHERINE S TURM AN PRODUCED BY

JUS TIN BR AND

OCTOBER 2018

TECHNOLOGY

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OLD MUTUAL iWYZE

Old Mutual iWYZE has developed online sales architecture to cater to its digital savvy customer base 76

T

he African insurance market in is turning into a hotbed of innovation. Life insurance, as a key example, grew by 13.7% from $39.465mn in

2016 to $44.899mn in 2017, with South Africa leading the way, with a market share of $71.7%.

Making up about 33% of the South African population, the country’s growing millennial market has led to rising demands for convenient and accessible products and services, which deliver real-time information. Mobile wallet solution M-Pesa has gained significant momentum, with further digital tools enabling companies to more effectively engage with customers, as well as give them the capability to target rural areas and cater towards a diverse demographic.

Part of the Old Mutual Group, Old Mutual iWYZE is a direct insurance provider, offering car, home and life insurance. Whilst the larger group works with brokers and partners, iWYZE listens to its customers and their needs to deliver an interactive customer OCTOBER 2018

TECHNOLOGY

77

E X E C U T I V E P R OF IL E

Jan Marais Experienced Head Of Information Technology and Strategic Projects with 18 years in the IT sector across 3 countries.

Focused mainly on the insurance industry over a period of 15 year. He has a strong information technology background with a focus on digital enablement, web enabled platforms and hosted environments.

a fri c a .busi ne ssc hief. com

HALLMARK

S A LVAG E S P E C I A L I S T S

The Smart Salvage Solution

Hallmark is well established in the salvage arena, having been in the business for more than 16 years.

With a sound capital infrastructure of Bluespec Holdings, a leading CRM system (Salesforce), centralised storage, long standing Blue-chip clients and an active customer database of well over 13 000 customers, Hallmark is best positioned to cater for niche Insurer salvage needs.

KEY BENEFITS

1. Fixed Percentage Returns 2. National Upliftment 3. Proven Track Record 4. Online Functionality (tender and timed auction) 5. Full Cloud based admin and tracking functionality 6. Pre-owned Dealership Model 7. Large Active Client Base

FOR MORE INFORMATION CONTACT Managing Director: Gavin Passos: 073 676 0005 Email: gavin@hallmarkauto.co.za Landline: 011 440 0601 Website: www.hallmarkauto.co.za

TECHNOLOGY

79 experience, effectively driving growth

lining the development of new

across its products.

self-service technologies, moving the

“We work closely with Old Mutual

business forward in digital innovation.

Insure, another member of the Old Mutual Group and they are our

GENERATIONAL SHIFT

largest partner. We make use of their

When exploring the advantages of

IT infrastructure and services

customer-self-service technology, tools

to ensure that we deliver the best

such as phone calls, standard text

customer experience for our cus-

messaging and even social and

tomers,” explains Head of IT Opera-

mobile based applications have

tions, Jan Marais.

revolutionised the way in which people

Obtaining over 18 years’ experience across multiple countries, Marais’s

communicate and interact.

However, whilst over 60% of the

goal is to make the business in-

Sub-Saharan Africa population

creasingly adaptable and robust,

remains unbanked, iWYZE, as well as

and has been a key figure in stream-

many other insurance companies, have a fri c a .busi ne ssc hief. com

OLD MUTUAL iWYZE

“ The journey of how people would like to interact is what excites us and that’s part and parcel of the foundation that we are building to enable that” — Jan Marais, Head of IT and Strategic Projects

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OCTOBER 2018

TECHNOLOGY

turned to technology to address this untapped market. With a highly knowledgeable, skilled team, the company’s workforce has gained a solid understanding of the short-term insurance industry and what its customers want.

“The journey of how people would like to interact is what excites us and that’s part and parcel of the foundation that we are building to enable that,” says Marais.

“When it comes to making sure that customers can interact with us through our digital channels, we need to understand their real risks at any time and should be able to get that information without any effort from the customer.

“We don’t want an overbearing forms process, where individuals have to answer a plethora of questions for us to be able to identify and assess their risk. We want to be able to achieve that with as few questions as possible and for us to tap into existing databases to be able to pre-populate information, so that we can get a person’s risk assessed without overbearing question sets.”

INCREASED AGILITY Ramping up its efforts to become a key player within the South African market, iWYZE underwent a market competitor analysis to look at how to bring new a fri c a .busi ne ssc hief. com

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OLD MUTUAL iWYZE

products to market, as well as embed the right policy administration systems to gain the trust of its customers.

“From a technology perspective, we had to put a lot of foundations in place to be able to give the business the opportunity to run at pace, to service our customers how they would like to be serviced. A big part of this is using technology and social media. Furthermore we’ve had a massive internal focus on the customer-centric service model to give our customers a world-class customer experience – this is cemented in how we engage our customers at each touchpoint through82

out the customer journey,” says Marais.

Although cloud has become an increasingly versatile tool within the insurance industry to drive down costs, promote scalability and improve business processes, iWYZE’s main focus is to be cloud-ready.

“We have a cloud-based footprint, so for us to be able to be a cost-effective IT organisation, it’s important to have a fine balance between re-using existing infrastructure of the larger business versus what we put in the cloud to be responsive to customers.

It is a very fine balance because that is what dictates cost-effective IT and to make sure that we’ve got the security around that,” he adds.

“To be successful and agile in such a fast-paced and competitive industry, it’s OCTOBER 2018

TECHNOLOGY

60%

The population of Sub-Saharan Africa that remains unbanked

iWYZE’s main focus is to be cloud ready

83

iWYZE works closely with customers, listening to their needs to deliver an interactive experience

iWYZE underwent a market competitor analysis to look at how to bring new products to market

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OLD MUTUAL iWYZE

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TECHNOLOGY

important for an organisation’s IT department to be close to and understand the business, the people, the processes and the products.

“Trust in the delivery of IT is something which takes a while to mature. One of the ways which has made us successful is running with a small business mentality

“From a technology perspective,we had to put a lot of foundations in place to be able to give the business the opportunity to run at pace, to service the client how they would like to be serviced” — Jan Marais, Head of IT and Strategic Projects

within a large business.

“This has given us that agility, sharing services with the larger business, trying to streamline and bypass overbearing governance and also supporting the bigger business by running proof of concepts (POCs) for them to be able to make decisions quicker.”

HIGH PERFORMANCE CULTURE Harnessing a strong policy administration system and partnering with TIA in Denmark, the business has sought to implement a service-oriented architecture, without compromising on the customer experience. As a result, its front-end system has remained agnostic from any of its systems in the background.

Additionally, Hallmark Salvage Specialists has been essential to its claims division, bringing on board a transparent and sophisticated operation to recoup costs incurred where required.

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TECHNOLOGY

“ It’s important to have a fine balance between re-using existing infrastructure of the larger business versus what we put in the cloud to be responsive to clients” — Jan Marais, Head of IT and Strategic Projects

the business’ new inhouse IT department remains committed to visualising data to guarantee better, data-driven decision making.

Bringing its outsourcing activities inhouse, iWYZE has developed an exceptional, bespoke IT infrastructure whilst taking advantage of the larger business’ existing infrastructure, delivering world-class results.

“I think we’ve got a very strong brand, Old Mutual is one of the oldest brands in South Africa, and the brand is synonymous with trust,” concludes Marais.

“Technology is always something that can be replicated and duplicated. Building a brand that is so strong and then bringing it into modern times using technology is what will give us an edge over the competitors, for sure.”

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88

A SUSTAINABLE LEGACY WRIT TEN BY

ANDRE W WOODS PRODUCED BY

S TUART IRVING

OCTOBER 2018

CONSTRUCTION

89

IN AFRICA a fri c a .busi ne ssc hief. com

MDESS — GCO CONTRACTORS

Millennium Drilling and Equipment Services Senegal (MDESS) Director Francis Billy Williams discusses opportunities for sustainable transformation in the mining industry

A

s awareness surrounding ethics and sustainability increases scrutiny across every industry, Senegalese mining contractor MDESS

(Millennium Drilling and Equipment Services Senegal) is working to own that conversation. MDESS wants to put as much back into the earth as it takes out with a range 90

of initiatives designed to preserve the wellbeing of its workers and their working environments.

Managing Director of MDESS Francis Billy Williams has made environmental practices and the safety of his workers – a top priority at his company. “The environmental side to what we do is of serious concern,” he explains from his Senegal office.

REHABILITATION One area of sustainable work Williams is tapping into pertains to the rehabilitation of existing water wells in the region. A massive 75% of Africa’s water comes from groundwater drilling, after a significant increase in water well/boreholes over the past 30 years. It is an area that MDESS is most active in.

“There are a lot of companies here and everybody is just drilling, drilling, drilling, and that represents a lot of OCTOBER 2018

MINING

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MDESS — GCO CONTRACTORS

drilled wells in need of rehabilitation,”

ful rehabilitation of a well will decrease

says Williams. “There is a village in

the drawdown, lower energy costs and

Ghana where there have been 10 wells

increase the pump life resulting in the

drilled and it was totally unnecessary.

raising of efficiencies and quality of

Why do we drill new ones, when there

water. “We have always been in close

are already 10 wells in the village? Why

proximity with environmental groups,

do you add more? Why don’t you build

making sure we don’t spill oil and that

roads and schools with that money

we keep our sites clean and safe and

instead? All the existing water wells

that we have all our papers in place.”

can be used if they’re rehabilitated. You

92

MDESS is a contractor of personnel,

wouldn’t buy a new car just because

equipment, transportation and logistical

your engine is smoking. You have to get

support to a number of global business-

the thing running again. These are

es such as Grand Côte Operations.

things I’m seeing around a lot of the

MDESS enjoys good relationships with

countries, where we’re just drilling the

its numerous partners, including

holes and leaving the holes behind;

Grande Côte. GCO’s mineral sands

holes that can rehabilitated. I have

operation is the largest single dredge

a program for rehabilitation that I’m

mineral sands operation in the world

going to put into action very soon.”

and is managed by an experienced

Water well maintenance programmes,

team, positioned on a coastal, mobile

in line with NGO support, have a number

dune system approximately 50km

of aims including the improvement and

north-east of Dakar in Senegal, home

maintenance of well performance as

to Africa’s largest international shipping

well as lengthening the overall lifespan

port. GCO will primarily produce

of the well and its assets. Such work

high-quality zircon and ilmenite as well

can also reduce operational costs as

as small amounts of rutile and leucox-

well as eliminating the risk associated

ene. The operations comprise a dredge,

with well transfer. The quality of both

a wet concentrator plant (WCP),

the water and the well improve as

a mineral separation plant (MSP), rail,

a result of these initiatives. A success-

port facilities and a power station.

OCTOBER 2018

MINING

“ We have always been in close proximity with environmental groups, making sure we don’t spill oil and that we keep our sites clean and safe and that we have all our papers in place” — Francis Billy Williams, Director, MDESS

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MDESS — GCO CONTRACTORS

“We are working for GCO, where we are doing some continent bore drilling. We have 15 wells drilled, and we are almost finished.

We have 10 more to come after,” says Williams. “I have a very good working relationship with GCO, Bauer and another company in Senegal called Midas, which I own. I have my own drilling company that I brought to Senegal, working in the same mine as them. We’re all heading towards the same goal. It’s all friendly; the guys there

“ We’re all heading towards the same goal. It’s all friendly; the guys there were trained by me” — Francis Billy Williams, Director, MDESS

were trained by me.”

To foster such valuable partnerships, MDESS has made a pledge not to compro-

The best partner in Africa for your project’s needs.

Your success is our success.

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MINING

95 mise on quality or safety. “We ensure

and more recently with Bauer. “You

our workers wear the appropriate

have to go through a lot of safety

PCE for the work we’re doing,

formations, because their priority was

especially when it comes to welding;

safety,” Williams explains. “95% of the

in case our welders aren’t wearing

whole program was safety. Newmont

the demanded kit,” Williams explains.

had a highly precise code when it came

“So, I think we have always been on

to safety because of the nature of the

the right track there with regards to

drilling that was being done by them.

safety concerns.”

They wanted everybody to come back

Safety is a paramount issue for

safe and sound. Newmont had very high

Williams, who has 37 years of experi-

expectations and everybody was being

ence under his belt. Williams’ record of

trained extensively on safety issues.

achieving the highest safety standards

We worked for about four years without

stretches back to his days working at

any incidents, which resulted in end-of-

the Newmont Gold Mines in Ghana,

month safety bonuses too.” a fri c a .busi ne ssc hief. com

MDESS — GCO CONTRACTORS

DRILLING SCHOOLS MDESS stakes its reputation on providing the best and safest equipment to mining operations and any piece of kit is only as safe as the person operating it. Williams has placed a strong emphasis on staff training at MDESS to reduce any potential risks as much as humanly possible. Williams is also looking at launching a drilling school in a bid to try and raise standards in the field.

“When it comes to equipment, I believe in working with the best. I worked for Bauer who had some of the best equipment in well mining. The safety standards were at a high 96

standard. The equipment was constantly tested, changed and overhauled and special training was implemented on how to use these tools correctly and safely. Most of the drilling we see in the villages is very poor,” he explains. “The workers are without PCE, and I’m sorry to say that Indian companies are drilling without even slippers on their feet.

No helmet. This is not accepted in our field.

“There should be a type of organisation that lets them know how to protect their workers. I am working with a friend of mine in Germany to see if we can set up a drilling school in Senegal, to teach the guys exactly what to do when it comes to drilling. It’s that important. What kind of legacy do you want to leave?”

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MINING

“ All the existing water wells can be used if they’re rehabilitated. You wouldn’t buy a new car just because your engine is smoking. You have to get the thing running again” — Francis Billy Williams, Director, MDESS

97

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98

OCTOBER 2018

CONSTRUCTION

HOW TACON REDEFINES ETHIOPIAN CONSTRUCTION WRIT TEN BY

DA LE BENTON PRODUCED BY

S TUART IRVING

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T E K L E B E R H A N A M B AY E C O N S T R U C T I O N P. L . C . ( TA C O N )

100

Through a companywide transformation and world-class service delivery, TACON is the Ethiopian construction partner of choice

A

s a proud member of the TAF Group, Tekleberhan Ambaye

Construction PLC (TACON) is a team of innovative, committed and engaged professionals who strive to deliver and exceed on the diverse expectations of all its stakeholders.

While engineer Tekleberhan Ambaye Fanta made his name as a philanthropist and businessman, the construction

OCTOBER 2018

CONSTRUCTION

101

company he established in 1993 served

average growth rate of 167%. The

as a springboard for the group that has

service segment of the company has

now become one of the leading diversi-

also grown to provide a full line of

fied Ethiopian business firms.

infrastructure development services,

Over the course of the last 25 years,

including among others: construction

rapid growth and an ‘obsession with

of highways and airport runways; civil

performance and speed’ has seen

works of railways and water projects;

TACON certified as an efficient and

massive earthworks; specialist pile

renowned Class One Ethiopian General

foundation excavation services; and

Contractor (GC 1).

industrial plants.

Over the last seven years, the

But what is the secret to this

company has seen its annual revenue

success? For Seifu Ambaye, Chair-

increase by 1,167%, maintaining an

man and Chief Executive Officer, it a fri c a .busi ne ssc hief. com

T E K L E B E R H A N A M B AY E C O N S T R U C T I O N P. L . C . ( TA C O N )

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OCTOBER 2018

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has been a drive for total client satisfaction as part of a major strategic transformation.

“Since I took up the post of TACON’s Senior Deputy General Manager in 2010, I embarked on a radical transformation of the company’s strategy, ushering in a new era of project management and internal efficiency,” says Ambaye.

“With the technical support of Ernst & Young (EY), the TAF Group has recently formulated a growth strategy that aims to gain competitive advantage and demonstrate institutional effectiveness through growth goals in the areas of financial, customer and market and internal processes.”

The unmatched growth of TACON is very much characterised by a mixed bag of both solid opportunities and substantial challenges. Through time, Ambaye came to realise

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103

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“ With the technical support of Ernst and Young (EY) the TAF Group has recently formulated a growth strategy that aims to gain competitive advantage and demonstrate institutional effectiveness through growth goals in financial, customer and market and internal process” — Seifu Ambaye, Chairman and Chief Executive Officer, Tekleberhan Ambaye Construction P.L.C. (TACON) OCTOBER 2018

that the company was marching too quickly to the extent of outgrowing existing capacity. This, in turn, created notable difficulties in meeting the growing expectations from clients for timely delivery of projects, including an inability to shoulder the burden of contractual and financial commitments. “If these challenges, coupled with internal pressures such as ineffective leadership, traditional construction service delivery methods, highly politicised behaviour and lack of

CONSTRUCTION

CLICK TO WATCH : ‘TEKLEBERHAN AMBAYE CONSTRUCTION (TACON) P.L.C. FULL DOCUMENTARY’ 105

systems continued to prevail, the

aforementioned internal pressures,

growing malaise would reach an

the company needed to act.

unbearable point,” he says.

“We adopt a project management

“The growing demand placed upon

philosophy that revolves around

the company by its key stakeholders

collaborating with all stakeholders and

allowed us to transform the business-

engage in integrated project delivery,

es of TACON and the TAF Group at

creating detailed activity and resourc-

large as a way-out strategy.”

es plans to meet the client’s scheduled

Tacon identified a number of key

implementation timelines, track project

drivers for this transformation. From

progress and fine tune deviations, closely

the government’s push to develop

monitoring the quality and cost-efficiency

competent local contractors, clients’

of operations thereby completing and

shift in focus towards the timely

delivering the projects on-time,”

delivery of quality projects, to the

Ambaye explains. a fri c a .busi ne ssc hief. com

T E K L E B E R H A N A M B AY E C O N S T R U C T I O N P. L . C . ( TA C O N )

“The result is that we take pride in the

cial, public, educational, residential,

promising outcomes, thus our clients

multi-purpose, health, research and

can always be assured that only the

financial buildings, as well as industrial

most experienced and qualified people

plants and recreational facilities.

are serving them, all the time.”

Amongst TACON’s diverse client

For Ambaye, TACON’s completion of these contracts represent far more

portfolio is a number of government

than enhancing physical infrastruc-

organisations. Over the course of its two

ture; they are implemented exceeding

and a half decades of operation, TACON

clients’ requirements and done so with

has worked with governments to

high quality and value with the view of

undertake numerous complex commer-

ultimately improving the livelihood secu-

106

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CONSTRUCTION

rity and economic self-reliance of

philosophy: ‘Counting on Our Human

local people. “From our perspectives,

Capital’ and this is something that

the significance of the completion of

Ambaye continues to drive.

works under contract goes beyond the

“We firmly believe that the company’s

culmination of the traditional client-

prime asset is our human resources,”

contractor relationship,” he says. “In

he says.

fact, our approach has been instru-

“As an organisation we strive to

mental in allowing TACON to become

ensure that everyone has adequate

a company of choice of the govern-

opportunity to understand and be

ments of regional countries.”

committed to take responsibility for

TAF Group was created with a core

their own continued development

107

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T E K L E B E R H A N A M B AY E C O N S T R U C T I O N P. L . C . ( TA C O N )

“ The result is that we take pride in the promising outcomes, thus our clients can always be assured that only the most experienced and qualified people are serving them, all the time” — Seifu Ambaye, Chairman and Chief Executive Officer, Tekleberhan Ambaye Construction P.L.C. (TACON)

108

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T E K L E B E R H A N A M B AY E C O N S T R U C T I O N P. L . C . ( TA C O N )

needs a promote lessons learnt inside and outside the companies; as well as to innovate, improve and recommend better ways, among others.”

These beliefs in the human resources saw TACON establish a Centre of Excellence in 2014. Accredited by the public regulatory bodies, the courses offered by the Centre of Excellence are designed to develop the necessary knowledge, skills and attitude of the trainees meeting relevant Occupational Standard (OS) and remain instrumental to increase the produc110

tivity, performance and profitability of the construction industry participants and other institutions.

As TACON looks to the future, Ambaye is mindful of the need to strike a balance between short-term goals and long-term ambition.

“Our short-term goals are to embark on formulating a strategy that combines internal growth by using the company’s capabilities to develop their own businesses as well as re-engineering operational systems and service delivery processes,” he says.

“To achieve the objectives embodied in our overarching vision and mission statements, the leadership will OCTOBER 2018

CONSTRUCTION

111 continue to invest in human capital; review the project management and supply chain practices in order to eliminate all service delivery that falls below industry standards. This will allow TACON to continue to stand tall above others in the industry.�

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