African Business Review – January 2015

Special Report: EL-ALAN Construction company

www.africanbusinessreview.co.za | January 2015

TOP 10

Africa’s Billionaires

FINANCE

The Investment Gap In Africa hotel partners africa Achieves Global Standards of Excellence

Big landscapes Inspire big thinking

THERE’S NOTHING LIKE AUSTRALIA FOR YOUR NEXT BUSINESS EVENT. This year we chose Australia for our global congress. It was an easy choice, as Australia’s proximity to Asia gave us the opportunity to attract many new delegates. The program was one of the best in years. New Australian developments in our field attracted a lot of interest and strong international research partnerships were established.

Australia is on everyone’s list to visit, and it lured our highest number of delegates yet. There’s no doubt they’ll be talking about this convention for years to come.

Dr Louise Wong, International Board Member

visit australia.com/businessevents/associations for everything you need to plan your australian event.

e di t o r ’ s c o mm e n t

A new era for African business I n t h i s i s s u e o f African Business

Review we take a look at the top 10 African billionaires of 2014. From Aliko Dangote to Naguib Sawiris we see who is cashing the biggest paychecks and why.

As we enter 2015, we also give you a financial and economic rundown of what to expect during the year ahead. We get to grips up and coming challenges, while evaluating the past year and how it will impact business in the future.

Finally, we consider how free Internet across Africa, courtesy of Mark Zuckerberg and Facebook could change communication – and therefore the business potential of the continent – forever.

Enjoy the issue & happy New Year.

Abigal Phillips Associate Editor abigal.phillips@wdmgroup.com 3

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Features technology

Contents

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Free Internet access across Africa: Facebook and Avanti could change the continent forever finance

Top10

AFRICAN Billionaires

20

14

Africa’s Investment Gap 5

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Contents

Techno Brain

28

Maersk Line East Africa

48

EL-ALAN Construction Company (Nigeria) Ltd

70

Company Profiles

African Carbon Energy

SUPPLYCHAIN 28 Maersk Line East Africa 38 Jendamark

82

Hotel Partners Africa

Mining 48 African Carbon Energy

TechNOLOGY 60 Techno Brain

Construction Jendamark

38

70 EL-ALAN Construction Company (Nigeria) Ltd 82 Hotel Partners Africa

7

technology

Free Internet access across Africa: Facebook and Avanti could change the continent forever The impact of the rumoured partnership to provide free Internet in rural Africa could have a massive impact on economies, governments and citizens alike W r i t t e n b y: M a t t h e w G o u l d , p o r t l a n d c o mm u n i c a t i o n s

F r e e I n t e rn e t

We’ve all heard the stories and wondered whether they were fact or science-fiction. Drones and balloons traveling across Africa, beaming wireless signals down to rural communities to allow them to access the internet for the first time.

For a long time, it seemed as Google were ahead of Facebook with its balloon-based Project Loon seen as the likely winner in this connection race.

But the recent news of a rumoured partnership between Facebook and UK satellite operator Avanti, has moved the social media giant into pole position.

While not yet confirmed, the partnership would be part of the Internet.org initiative and would see satellites used to provide free internet access to people across the majority of the continent.

But what would this mean in practice? In many parts of the world, the internet and digital communications are now such a fact of lives that it is difficult to imagine how we operated before it came along. So how lives, economies and politics change if huge swathes of the continent’s citizens are suddenly 9

technology

Google Loon Balloon close up

online and able to access the Web? The possibilities and potential is enormous. Every year, the World Wide Web Foundation (founded by the Web’s creator, Sir Tim Berners-Lee) releases its Web Index, which “measures the impact of the Web on the world’s people”. The Index tracks a number of indicators, including the social impact of the Web - access to health information 10

January 2015

and support, education opportunities, even the ability to just connect with friends through social media.

On the health and education fronts, there could be major changes on the horizon in African countries.

Greater access to online medical information, and even the chance for remote connections to doctors and nurses, could lead to a huge step forward in the medical sector.

F r e e I n t e rn e t a c c e ss a c r o ss A fri c a

There has already been a huge amount done across the continent in the mHealth space (just look at the great work being done by MAMA to provide critical information to new mums or mPedigree’s app to detect counterfeit medicines).

With greater access to the internet, local innovators would have much greater ability and reason to develop apps or ideas to address a

Balloon-powered Internet for everyone

health issue in their community.

The same could be said for education as well. Along with 11

technology high-profile projects like One Laptop Per Child, expect to see a huge rise in distance learning and massive online open courses (MOOCs).

MOOCs in Africa is something Facebook has taken a particular interest in before. Speaking with Wired last year, Facebook’s head of global policy development highlighted the huge opportunity presented by organisations like Coursera and Khan Academy.

The ability to access courses from world-class academic institutions in other African countries or around the world will open up a myriad of education opportunities for rural Africans which might previously have seemed impossible.

But the potential impact of free internet in rural Africa extends far

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January 2015

past its potential to transform the lives and opportunities of individuals.

The economic and political impacts could be equally ground-breaking.

Take the oft-cited fact that Africa has one of the fastest-growing consumer bases in the world. The online purchasing power of that growing middle class has already led to the development of local products like Jumia, the African e-commerce hub that operates in nine African countries and recently received USD150 million in new funding (valuing the company at over half a billion). Our 2014 analysis of Twitter use in Africa showed how brands are starting to realise that social media is becoming an important tool to reach consumers around the continent.

With more of Africa’s one billion plus able to move their purchasing (personal and professional) and vending online, we could be on the cusp of an e-commerce explosion on the continent.

Or take the potential political power that an individual receives the moment they move online. The Arab Spring proved how social media can be a catalyst for political change and even

F r e e I n t e rn e t a c c e ss a c r o ss A fri c a

Twitter is becoming an important tool for bringing people together

upheaval, And you need look no further than recent African elections (like Kenya’s 2013 election) to see how Twitter is becoming an important tool for political campaigning and discussion on the continent.

Governments and politicians are becoming increasingly accountable to their people through the power of social media and the Web. So with that in mind, how can we not expect that greater access to information and debate will also have an incalculable impact on how governments in Africa operate?

Regardless of how you approach the question, it is undeniable that

greater access to the Internet and Web will have a huge impact on Africa’s population. Individuals will become more informed and empowered.

Economies will move online and develop. Governments will become answerable to their citizens.

Whether the rumours of Facebook and Avanti’s partnership turn out to be nothing more than that, it is only a matter of time before groups like Internet.org achieve their dream of getting more of more of the world online. I, personally, cannot wait to see how dramatically the world will change when that dream becomes reality.

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Africa’s Investment Gap Geoff Cook, CEO of Jersey Finance, discusses the opportunities to be made from the Africa’s emerging markets Writ t e n by: M atth e w Sta f f

finance

15

finance There is a perception that putting capital into emerging markets such as Africa is a risky venture, but this opinion is slowly changing, and investors worldwide are waking up to the huge opportunity presented by the continent over the coming decades.

However, there are still some major challenges ahead if Africa is to realise its economic potential, and while state governments have a large part to play, this can only go so far and foreign direct investment is essential.

A report commissioned by Jersey Finance and produced by the renowned, independent research firm, Capital Economics, examined Africa’s future investment needs, difficulties faced and where future funding could come from. Entitled ‘Jersey’s Value

to Africa’, the report found that while the continent’s potential is huge, its capital stock will need to increase by six times its current level by 2040, which will require a cumulative investment of US$85 trillion. To put this figure into perspective, that is roughly equivalent to the global gross domestic product for one year.

Currently Africa invests 23.5 per cent of GDP but that would need to increase to 37 percent otherwise it will face an investment gap of US$11.4 trillion by 2040.

Africa’s domestic private sector will struggle to finance this shortfall alone, and realistically will only be able to contribute up to US$1.8 trillion of the gap. And, while international aid has a part to play,

‘Currently Africa invests 23.5 per cent of GDP but that would need to increase to 37 per cent otherwise it will face an investment gap of US$11.4 trillion by 2040’ 16

January 2015

Africa receives 2.7 per cent of the world’s stock of foreign investment the reality is that the amount given to Africa each year cannot even scratch the surface with aid only amounting to US$51 billion in 2012.

Africa as a whole is growing but there is much variation within the continent. Each of Africa’s 54 nations have their own economies, political regimes, cultures and growth trajectories. Approximately half of all African countries have sizeable natural resource wealth, but foreign investors are likely dissuaded from investing in the continent by the difficulty of conducting business in Africa compared with the rest of the

world. According to a global ranking of countries by the World Bank, the majority of African countries fall in the bottom fifth of all nations globally on a scale of ease of doing business.

Operating in this landscape can be difficult to negotiate for many foreign investors who do not see themselves as having the necessary knowledge.

These issues contribute to the lower than expected investment rates into Africa: despite making up 15 percent of the world’s population, not to mention 20.4 per cent of the Earth’s land mass, Africa accounts for just 4 per cent of the global 17

finance

Per captita real gross domestic product compound annual growth rate forecasts, 2013 to 2040

economy: Africa receives only 2.7 per cent of the world’s stock of foreign investment, which is almost a quarter less than is invested in Latin America and the Caribbean.

Jersey has a role to play in helping African nations access the investment funds they need and establish environments conducive to greater entrepreneurship and job creation.

The island can help entrepreneurs in Africa by providing additional safeguards and security and by encouraging investment from around the globe into Africa from those who might otherwise be deterred by the perceived riskiness of doing business 18

January 2015

‘Jersey has a role to play in helping African nations access the investment funds they need and establish environments conducive to greater entrepreneurship and job creation’ on the continent. Corporates, funds and other vehicles based in Jersey may gain traction from global investors who would otherwise be reluctant to

A fri c a ’ s I nv e s t m e n t G ap

invest directly into Africa, particularly as Jersey can offer specialised cross-border banking and assist with investment pooling. The extractive industries are a good case in point; the business model for mining is typified by large up-front capital expenditure and sizeable operational risks. In Africa, these may be compounded by perceived political and systemic dangers. Few investors have an appetite for such ventures – so those assembling the finance for a mining or drilling deal must search across the globe for funders, something that Jersey is well-primed to assist with.

In amongst this, however, the signs are extremely encouraging: over the past decade, Africa‘s economy has grown by an average of 5.2 per cent a year, making it one of the world’s fastest growing regions, for reasons including improvements in political stability and governance, development of key infrastructure, and the expansion of the natural resources industries.

And while other regions face the challenges of ageing populations, Africa’s working age populace is expected to double over the next 30 years, to around 1.2 billion. This

Geoff Cook, CEO of Jersey Finance growth is a step-change opportunity that increases the productive potential of the continent’s economies although it will need the infrastructure and public services to support this.

Investment into Africa offers a mutually beneficial proposition – the commercial opportunity offered by the continent is substantial – but foreign investment also has the potential to be truly transformational for the continent and play a fundamental role in Africa realising its economic potential.

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TOP 1 0

AFRICAN

Billionaires We end 2014 and move into 2015 by checking in on an old favourite: the richest people in Africa, courtesy of Forbes. The amount of Billionaires on the continent has increased but who is the wealthiest?

Written by Matthew Staff Naguib Sawiris The first of two Sawiris brothers in the top 10, Naguib took back his role as CEO at Orascom Telecom Media & Technology last month, immediately boosting share prices in the company by 7 percent. As the original founder of Orascom Telecom Holding, Naguib Sawiris led the telecoms company to the top of the regional tree.

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January 2015

WORTH $3.1bn

A fri c an B illi o nair e s

9

WORTH $3.2bn

10

Issad Rebrab Cevital’s founder, Issad Rebrab is an Algerian entrepreneur who has formed his wealth through diversified business development which bridged steel, food, agribusiness and electronics.

Cevital is the North African country’s biggest privately held conglomerate and also owns one of the largest sugar refineries in the world, generating 1.5 million tons per annum.

21

top 10

8

Mohamed Mansour Breaching the $4 billion mark, Mohamed Mansour’s successful continuation of the Mansour Group which controls nine of Egypt’s top Fortune 500 companies. Born into the Mansour family business, Mohamed was educated in the US, subsequently building close affiliations with companies

WORTH $3.7bn

such as Chevrolet, GM and Caterpillar for whom Mansour Group are key distributors.

WORTH $4bn

Isabel dos Santos As the only woman on the list, Isabel dos Santos is Africa’s only female billionaire, and subsequently, Africa’s richest woman. The eldest daughter of former Angolan president, Jose Eduardo dos Santos, Isabel made her wealth via affiliations with Portuguese banks and companies, as well as her holdings in Angola including 25 percent of mobile phone carrier, Unitel.

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January 2015

7

A fri c an B illi o nair e s

Christoffel Wiese Outside of the core mining, construction, energy and electronics sectors in Africa, Chritoffel Wiese’s $5.4 billion fortune has come via retail. Still adding to his substantial portfolio

6

to this day, the tycoon is most renowned for being the Executive

WORTH $4.6bn

Mike Adenuga Claiming second place in Nigeria’s rich list – admittedly, some distance behind first – Mike Adenuga’s influence in the telecoms and oil industries has made him one of the most powerful people in the country. His main business success stemmed from the 2003 founding of Globacom which now has more than 27 million subscribers in Nigeria, second only to MTN.

Director of Shoprite, one of South Africa’s leading retail outlets.

5 WORTH $5.4bn

23

top 10

4

Nicky Oppenheim

South African businessm

Nicky Oppenheimer is no

investment field following

Oppenheimer family’s bu

diamond company De Be

Deputy Chairman of the A

Corporation, Oppehneim

investments is equally co

his work in philanthropy in

WORTH $6.1bn Nassef Sawiris The slightly wealthier Sawiris brother, Nassef is Egypt’s richest man, and while Naguib has more than enough to keep him from jealousy, Nassef is actually the youngest of the three Sawiris siblings, which also includes Samih.

Nassef runs Orascom Construction Industries Egypt’s most valuable publicly traded company while ventures alongside the Middle Eastern elite puts him at the forefront of much of the country’s current developments.

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January 2015

3

A fri c an B illi o nair e s

2

mer

man and philanthropist,

ow moving into the

g the end of The

usiness in charge of

eers. Also the former

Anglo American

mer’s move into new

omplemented by

n South Africa.

WORTH $6.8bn

WORTH $7.3bn Johann Rupert Chairman of Compagnie Financiere Richemont, Johann Rupert returned to the role in September this year following a year’s break. After forming the Swiss company responsible for Cartier and Montblanc in the late 1980s, the South African luxury goods tycoon also maintains his indigenous presence through a seven percent stake in Remgro.

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top 10

Aliko Dangote Nigeria has won the African economy battle on all fronts in 2014, firstly claiming top spot as the continent’s leading financial frontier, and less surprisingly, boasting the continent’s richest man, Aliko Dangote. A mere $14 billion wealthier than Rupert, Dangote’s empire is world renowned having stemmed from his cement business which has recently entered its 14th African country following the opening of its Tanzanian plant.

Dangote’s presence as an internationally significant and powerful man has also led to him playing a key role at the World Economic Forum, while more recently vowing to aid the Liberian Ebola relief effort as part of his philanthropic activities.

Dangote’s billions and Nigeria’s everdeveloping prosperity is indicative of the country’s general rise ahead of South Africa; the former now boasting 12 of the continent’s 50 richest people, ahead of the latter’s 11.

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January 2015

A fri c an B illi o nair e s

1 WORTH $21.6bn

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Maersk Line East Africa emerging as a jewel in the company crown Written by: Sam Jermy Produced by: Dennis Morales

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M a e r s k L i n e Ea s t A f r i c a

The East Africa region of Maersk Line has gained top-level attention as the rate of growth surpasses many of the economies of the western world

Loading Maersk container cargo

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January 2015

T

he East African containerised market is enjoying an exciting phase in its development, as it closes in on one million twenty-foot equivalent units (TEU’S) in both shipping directions with the level growth outpacing many other markets.

Maersk Line acts as a facilitator of trade within a region it only began operating in during the 1980’s, and since then has directly and indirectly created thousands of jobs within East Africa. Thirty years later, and Maersk Line East Africa is now the leading container carrier in the area, with up to seven weekly port calls.

The business unit’s scope comprises Kenya, with the regional headquarters in Nairobi, Uganda, Tanzania, Rwanda, Burundi and South Sudan, extending to the eastern DRC and also serving customers as far away as Zambia and Malawi.

Steve Felder, Managing Director of Maersk Line East Africa, said: “The shipping industry, and of course our business, plays a significant role in enabling trade in the region by connecting East African importers and exporters to a global trade network. We focus almost exclusively on port-to-port shipping, which is a critical element in our customers’ supply chains.

We offer reliable weekly sailings to and from literally hundreds of ports around the globe.

“The market in East Africa is now approximately one million TEU in both directions and is growing at around 10 percent per year, which is more than double the global containerised growth on average.

S uppl y Chain

Steve Felder, Managing Director - East Africa

So relatively speaking we are a high growth region, and so it’s taking on more prominence in our company. Our Maersk Group CEO and members of the executive board visit quite regularly, so it is definitely a priority area for us.

“In East Africa we directly employ about 150 colleagues. Over the years, we have also offshored some non-location-specific tasks to our shared services centres in India, China and the Philippines, in order to enable us to get more of a focus on the customers locally.”

Progression and challenges Trade essentially works in two corridors in East Africa. The northern corridor originates from Mombasa and services the whole of Kenya,

“The shipping industry, and of course our business, plays a significant role in enabling trade in the region, by connecting East African importers and exporters to a global trade network” – Steve Felder, MD of Maersk Line East Africa

w w w. m a e r s k l i n e . c o m

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M a e r s k L i n e Ea s t A f r i c a

Safmarine truck

“Currently, it often costs far less to ship a container from China to East Africa than it does to truck that same container to its final destination in the region” – Steve Felder 32

January 2015

Uganda, South Sudan and parts of Rwanda.

The central corridor starts in Dar Es Salaam and services Tanzania, parts of Rwanda, Burundi and parts of Zambia, Malawi and eastern DRC. Felder points out that although Mombasa and Dar Es Salaam are the two main gateways and critical trade corridors, Maersk also has an office in Kampala, making it the only shipping line with a comprehensive full-service set-up in Uganda, with services including sales, customer relation management and documentation to collections. This positions the company well to service its customers in

S uppl y Chain

this important inland market, which has also emerged as a trading hub for South Sudan.

The firm has also recently implemented a customer CARE programme, where larger customers receive a highly personalised after-sales service anchored with a dedicated point of contact.

Felder said: “The growth is pleasing, but at the same time the infrastructure has to keep up with it. The capacity on the rail network is currently insufficient, and only three percent of cargo moves on rail, so the remaining 97 percent moves on road, which adds to the deterioration of the road network. The ports are also stretched for capacity, and productivity is rather low compared to developed markets.

“Like many emerging markets, East Africa is characterised by a high import dominance.

For every four containers being imported full, only one is getting exported full. This means there is a lot of open capacity on the backhaul route, creating a massive trade imbalance and also a large repositioning cost for us.

“Of course our hope is that over time there will be greater proliferation of industrial and production activity in the region, in order to address this imbalance. Over time we also hope the inland logistics cost will go down too. Currently, it often costs far less to ship a container from China to East Africa than it does to truck that same container to its final destination in the region.”

Maersk cargo

Loading cargo

w w w. m a e r s k l i n e . c o m

33

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M a e r s k L i n e Ea s t A f r i c a

S uppl y Chain

Future strategic plans Containerised trade and the economy in the East African region is growing at faster than developed markets. Economic growth in the region ranges from +4.5 to +7 percent rise in GDP (Gross Domestic Product) and the population is 160 million, around half of the USA. Although there is immense potential in the market going forward, there are still challenges.

These include the cost of electricity, large trade deficits, insecurity, bureaucracy and overreliance on agriculture. But the ongoing political stability, high population growth, growing middle-class, increasing foreign investment, and new Oil & Gas discoveries means the region is clearly poised for more growth.

Felder added: “Infrastructure development is very high on all the governments’ agenda in the region. There are plans to improve ports, develop a standard gauge railway between Mombasa, Kampala and possibly extending to Kigali, and to rehabilitate the railway from Da El Salaam to the hinterland countries, so infrastructure as an enabler to growth is at the forefront of everyone’s minds.”

Maersk Line has also made a concerted effort to localise many management positions previously held by expats. For example, it recently hired a local CFO for its Tanzanian agency who replaces an expatriate. Despite this, Maersk is a global company, and expatriation is still used as a vehicle for

“The market in East Africa is now approximately one million TEU in both directions and is growing at around 10 percent per year, which is more than double the global containerised growth on average” – Steve Felder

Safmarine truck

w w w. m a e r s k l i n e . c o m

35

M a e r s k L i n e Ea s t A f r i c a

Safmarine container ship

“Infrastructure development is very high on all the governments’ agenda in the region. There are plans to improve ports and develop a standard railway between Mombasa and Kampala.”

– Steve Felder 36

January 2015

development of high-potential employees.

The Africa region boasts an African Leadership Development Programme, where 40-50 emerging leaders from the African market are trained in a variety of skills, in order to ensure it is building a strong foundation for the future.

The other focus of investments is largely upgrading vessel sizes to accommodate growth.

Maersk Line has during 2014 upgraded the capacity of its services from the Middle East and the Indian sub-continent into East Africa, and will continue to upgrade capacity as and when warranted by market growth. The East African ports currently have a mix of ship-to-shore

S uppl y Chain

cranes and also make use of onboard vessel gear. Maersk Line is the only shipping line with two dedicated berths at the Port of Mombasa, facilitating unmatched reliability to its customers.

Controlled atmosphere reefer containers have the ability to extend the shelf-life of sensitive agricultural and horticultural products, which has opened up a realm of new opportunities.

For example, Maersk Line ran a project to convert some of the avocado exports from air freight to sea freight. It was very successful, and today it moves approximately 30 percent of avocado exports in reefer containers, enabling the fruit to reach European markets at a lower cost and with a substantially lower carbon footprint.

Exports from East Africa are mainly commodities such as soda ash, tea, coffee, minerals and tobacco. There is also a fairly robust trade of fruit and vegetables, and a niche trade of garments to the USA under the AGOA agreement. Imports are generally finished goods such as motor vehicles, plastics and consumer goods, with Asia being a large origin, along with the UAE as a key redistribution centre.

Customers can transact with Maersk Line in East Africa almost entirely via its suite of e-commerce tools, and can make payments via mobile money, which is very prolific in the region. With the financial strength and global expertise Maersk Line possesses, it is clear that the East Africa region is set for a prosperous period into the future.

Company Information Industry

Supply Chain headquarters

Nairobi, Kenya founded

1984 employees

150 revenue

Not Disclosed products/ services

Container shipping

w w w. m a e r s k l i n e . c o m

37

www co.za

Jendamark a South

African company with a global philosophy

Written by: Abigail Phillips Produced by: Dennis Morales

w.jendamark.

39

One thing that sets Jendamark aside from the competition is its focus on understanding it’s customers and getting to know the people it deals with

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January 2015

E

stablished in 1989, Jendamark Automation provides production solutions, predominantly to the automotive industry, with the pharmaceutical, food and beverage and packing industries benefiting from its services.

The company has more than 18 years worth of turnkey projects and special purpose machinery experience under its belt and takes pride in its ability to provide world-class production lines and assembly facilities to export orientated customers.

From conceptual to final design, manufacture, assembly, software engineering, commissioning and training with after sales service and support,

J e n d ama r k

S uppl y Chain

Jendamark is able to offer its customers more than machines. Jendamark works with a broad range of international companies, and as such has a successful component sales and marketing team with representatives globally.

Focusing on people One thing that sets Jendamark aside from the competition is its focus on people. On the company’s website it states, “We make it our business to get to know the people we deal with, to understand their expectations and their needs, and to gain an intimate knowledge of their long term goals and immediate challenges,” and Quinton Uren, Managing Director, echoes this sentiment.

“We listen to our customers needs and work with them to develop solutions they want,” he says.

Couple this commitment to its clients with almost 20 years experience in turnkey projects and developing special purpose machinery, and it is clear why Jendamark Automation are leaders in the field of providing world class production lines and assembly facilities.

“When you deal with Jendamark Automation

“We make it our business to get to know the people we deal with to understand their expectations and their needs, and to gain an intimate knowledge of their long term goals and immediate challenges,””

Jendamark Automation At Jendamark Automation there is only one thing we seek to understand better than machines – people!

We make it our business to get to know the people we deal with, to understand their expectations and their needs, and to gain an intimate knowledge of their long term goals and immediate challenges.

Couple this commitment to our clients with almost 20 years experience in Turnkey Projects and developing Special Purpose Machinery, and it is clear why Jendamark Automation are leaders in the field of providing world class production lines and assembly facilities.

– Quinton Uren, Managing Director w w w. j e n d a m a r k . c o . z a

41

J e n d ama r k you’re investing in more than a tangible, final product. You’re investing in a relationship that offers you support every step of the way, from conceptual planning to final design; from mechanical engineering to software development; and from the initial training to after-sales service and support,” says Uren.

Jendamark won the award for Exporter of the Year in 2014

Developing customer-centric operations One of the biggest challenges facing Jendamark is a skills shortage in South Africa. With this in mind the company has developed a lot of inhouse training programs in design, process management and business strategy in general. It teaches all of its employees not only how to make its machines, but how to manufacture them to customer specifications in the export market.

“We have customers in emerging markets such as China and India, which tend to have very manual operations, and then we have customers in the developed world - so the U.S. and Europe who look for total automation. We offer solutions to all these customers and hybrid alternatives for

“When you deal with Jendamark Automation you’re investing in more than a tangible, final product. You’re investing in a relationship that offers you support every step of the way” – Quinton Uren 42

January 2015

Stepper Motors

Actuators Energy Efficiency

Pneumatics

Air Preparation

Sensors

Control Cabinets

PLCs

Vision Systems

Design Electric Drives Didactic Training

Process Automation Machine Safety

Commissioning

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J e n d ama r k

S uppl y Chain

everyone in between,” explains Uren.

The company also works very closely with local universities, and has recently established an apprenticeship scheme, which is proving very successful so far.

Overcoming distance-to-market challenges Everything Jendamark does, every decision the company makes, is driven by customer demand.

It manufactures all its systems in South Africa, however its distance to market can be a challenge.

“Our machines are quite large so we have an additional eight weeks of shipping and customs clearance before we reach markets in the northern hemisphere,” explains Uren. “With this in mind we have to be ahead of the curve and ensure our customers want our products. We have to work closely with them and listen to their needs to predict the solutions they will require in sixmonths, one-year, three-years time.”

Catalytic Converter Stuffing

Research and development To second-guess the next big market trends, Jendamark has recently established its own R&D department, made up of experts within the business. “The newly formed team is working on standardization of equipment and systems, product development and market analysis,” says Uren.

The R&D team develop new solutions, build prototypes, test them in-house and then ask customers to come and take a look before taking them to mass production. It also works on w w w. j e n d a m a r k . c o . z a

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J e n d ama r k

“We are investing in manufacturing, R&D, tooling and people management. We will continue to build relations with customers and find out what they need for future growth” – Quinton Uren

developing CAD and CAM solutions and MES software.

Once a new solution is approved, it is manufactured in South Africa. Often the customer will visit the factory to sign off the machine, at which point it is disassembled then packed and shipped by Jendamark. The company will then send a team of engineers to the customers’ factory and unbox, reassemble and re-commission the machine. Those same engineers will also train the customer and offer support while the new team takes over.

Jendamark has gone from 100 percent local development to exporting 97 percent of its products in the last 10 years. In the next five

Some of Jendamark’s current customers 46

January 2015

S uppl y Chain

years, this level of export is expected to continue, with the U.S., Europe, China and India earmarked as the next big territories. “We are investing in manufacturing, R&D, tooling and people management. We will continue to build relations with customers and find out what they need for future growth,” says Uren.

Company Information Industry

Supply Chain headquarters

Offering global solutions Jendamark hasn’t only found success by putting the customer at the epicenter of its business.

“When we first started out as an export business it was hard to get customers to accept South Africa as a manufacturing destination. Once they get over the surprise that we have the expertise they started to recognise the global solutions that we could offer. We have 11 different languages in the region so its hard to get operators to understand text instructions, with this in mind, we developed symbolic and video based instructions, which made out machines universally understandable. This has been incredibly well received in the sector, which constantly faces issues with poor literacy rates and imported labour.”

Jendamark is a South African company with a global outlook, underpinned by a commitment to people. The company to recognizes that its people – be it customers or employees - are its greatest strength and main asset, and with that understanding it will develop and grown long into the future.

Port Elizabeth, South Africa founded

1989 employees

Not disclosed revenue

Not disclosed products/ services

Manufacturing

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African Carbon Energy

Propels South Africa to the Forefront of Underground Coal Gasification Written by: Tom Wadlow Produced by: Anthony Munatswa

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A f r i c a n Ca r b o n E n e r g y

The Theunissen project in the Free State province will become a vital contributor to the country’s electricity supply with the first 50 megawatt plant set to become operational in 2017

Schematic layout showing the scale of mining a very deep (370m) coal seam

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January 2015

A

frican Carbon Energy (Africary) is putting South Africa at the forefront of Underground Coal Gasification (UCG) by developing a one billion-tonne coal deposit at Theunissen in the Free State to fill a vital gap in the country’s electricity supply.

The junior miner, based in Pretoria and founded in 2007 by current CEO Johan Brand and late business partner Eliphus Monkoe, had pooled together their expertise in mining, exploration and gasification to establish a diversified commodities technology supplier in Southern Africa.

Working to register as an Independent Power Producer (IPP) with the Department of Energy, Africary is championing a technique that had been commonplace several decades ago, and one which holds several advantages over conventional coal mining which has now become the mainstream.

MINING

Brand, a former government certified mining engineer at Sasol and an important part of its UCG development, outlined his ambitions.

He said: “My vision is to optimise the whole coal to electricity value chain. My aim is to safely and efficiently transform our valuable coal resource into a transferrable energy commodity which can be sold to meet local demand. In South Africa we are experiencing a huge electricity demand for what is a large and growing economy, and with aging Eskom power stations we are running out of supply.”

Theunissen Central to Brand’s objective is arguably the largest coal deposit in the Free State province near Theunissen, bought from BHP Billiton in 2012, and one ideally suited to UCG due to its coal being at an average depth of 350 to 500m.

16 Number of years the projects 50MW power station can be kept running with coal converted syngas

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A f r i c a n Ca r b o n E n e r g y

This is arguably the largest coal resource in the Free State province

Having acquired surface rights, Africary has access to 600 hectares, but has completed exploration drilling on a 100 hectare area to obtain a measured resource of roughly four million tonnes of coal. Production at this first site will make use of very efficient syngas-rated gas engines, and the plant is set for operation in 2017.

“This is enough to run our 50 Megawatt (MW) power station for 16 years, and if you consider that we still have 996 million tonnes of Inferred coal left, we are here for the long run,” Brand said. “It is a whopping large resource.”

The South African Department of Energy (DoE) recently unveiled a 2,500 MW coal base load IPP

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MINING

(Independent Power Producer) programme, with Africary set to contribute 50 MW within three years and a further 1,000 MW by around 2022, comprising two systems of roughly 500 MW based on combined cycle gas turbine technology.

The bidding process for the DoE IPP contracts for the first 50 MW operations will start next year, and Africary will be using its strategic alliance partners, CDE Process Engineering and Aqua Alpha Directional Drilling, to implement the UCG syngas handling technologies and horizontal drilling.

Africary has a proven track record stretching before the 2012 acquisition. In 2009 it supported

Above: Graphic explaining the horizontal drilling layout of a UCG site

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A f r i c a n Ca r b o n E n e r g y

UCG Area showing farm land above the UCG site

What is considered a good UCG potential resource? > Coal seam depth of over 200 metres > Coal thickness of more than 3 metres > Ash content less than 60% > Minimal discontinuities > Isolation from valued aquifers

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January 2015

Australian ASX listed Wildhorse Energy with investment, technology and management skills for a proposed UCG Project in Europe. The whole Africary team has also a long track record with Sasol which is the world’s largest coal mining gasification company, producing 150,000 barrels of oil every day from coal gasification.

Why UCG? Underground Coal Gasification is a mining method that extracts previously stranded coal reserves in-situ, through a gasification process by constructing at least two horizontal boreholes, where one borehole is used to inject air/oxygen to convert the coal into syngas and another to bring the syngas to surface.

It is an economically and environmentally viable option for mining deep reserves (200 metres or deeper), and with two thirds of the planet’s coal unable to be mined through conventional techniques it is the most promising technology for the future.

MINING

Brand added: “It was the mainstream method from around 1940 to 1960 in the former Soviet Union, which had 15 power stations and plants mining over 15 million tonnes of coal, of which one is still operational in Uzbekistan. In South Africa Eskom is operating their first UCG pilot since 2007 at Majub Power Station by cofeeding the syngas into a boiler, and is currently involved in the EIA and permit application processes to increase the size to 100 MW.” “About 80 percent of the energy in the coal comes out in the gas to surface, making UCG a very efficient mining process. At the

CEO Johan Brand inspecting a

Key Personnel

Johan Brand CEO Johan Brand is a business and project management specialist that has the ability to find commercial cost effective results and his innovation on technical and business aspects often leads to ground breaking solutions.

He was previously an employee of Sasol for 13 years and held the position of UCG Business Manager between 2006 and 2009, responsible for the establishment and management of UCG as a Sasol business unit. Brand has worked throughout South Africa, other parts of Africa and Europe for large multinationals and start-ups.

Theunissen coal roof exploration core

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A f r i c a n Ca r b o n E n e r g y The power station will consist of gas engines each in its own self-contained containerized units

“This is a complete breakaway from South Africa’s traditional mining industries of opencast or shaft mining” – Johan Brand 56

January 2015

same time no person has to be underground whilst you can implement high extraction mining, bringing great safety benefits.”

The syngas is contained deep underground inside the coal mine by operating the process at a lower pressure than the hydrostatic pressure surrounding the coal strata, meaning that surface leakages are prevented, while ash is also kept from producing smoke and other environmental hazards like leaching.

MINING

The process also uses a tenth of the water used by an equivalent sized boiler systems.

“It doesn’t require much manpower to run either,” Brand said. “The boreholes are predrilled and last for eight to 10 years, so there will only be a few people looking after the gas cleanup equipment and power generators. The rest operates autonomously via computer control.”

“This is a complete breakaway from South Africa’s traditional mining industries

Click to see an aerial view of the plant

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A f r i c a n Ca r b o n E n e r g y

Above: Exploration drilling at the Theunissen UCG site

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January 2015

of opencast or shaft mining, which are both very labour intensive and require huge amounts of upfront capital.�

Together with the likes of Exxaro, Eskom and Sasol, Africary founded the South African UCG Association, designed to champion the technology and create industry standards and training schemes, propelling the country to the forefront of the global industry.

MINING

Poly Generation Brand’s vision for the company is to move into poly generation, combining electricity production with the creation of chemical products such as ammonia, fertilisers and liquid fuels.

The greatest challenge that the CEO overcame on this project was to find the sweet spot of connecting three divergent areas of constraint – a suitable coal resource, a productive, save and environmental mining technology and a lucrative market.

He concluded: “With any resource and technology, it can only be effectively utilised when there is a suitable market for it. The one thing about syngas is that by itself it is not a commodity people would buy directly. Either you have to turn it into natural gas or electricity or some other fuel or chemical. I was fortunate enough to come from an environment doing exactly this, making many products from syngas.

“As a junior mining company we are very excited to compete for projects of such a scale. We get support from local banks as they know the current government (DoE and Eskom) IPP initiative is the sovereign 30 year off taker for the electricity.

“What UCG needs is countries and companies that are willing to build a value chain around it.

To lead the way we have worked hard to become UCG specialist that can design, integrate, operate and own the whole value chain.”

Company Information Industry

Mining headquarters

Pretoria founded

2007 employees

Less than 10 revenue

None, as we are in project development phase products/ services

Mining, Underground Coal Gasification

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Techno Brain

Puts Africa First by Empower Compete with Global Techno Written by: Tom Wadlow Produced by: Kiron Chavda

ring Africans to ology Giants 61

TECHNO BRAIN

The IT training, BPO and solutions provider has completed hundreds of projects for public and private clients and is on track for the coveted CMM Level 5, the ultimate statement that Africa is ready to compete on the global technology stage

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January 2015

T

echno Brain is showing to the world that Africa is capable of producing first class global companies and does not have to rely on multinational technology powerhouses from elsewhere in order to carry out vital public and private business functions.

Through carrying out important projects for governments across Sub Saharan Africa, the company is demonstrating that native software businesses are able to save administrations time and money, while being on hand at all times to resolve issues and continuously develop offerings.

Its 11 products and 75 solutions have been carefully developed in-house at R&D centres in Hyderabad (India), Abuja (Nigeria) and company HQ in Nairobi (Kenya), and are now deployed across 23 countries by 1,600 employees. It is a remarkable growth from a small training company founded 17 years ago.

The next step is to become the only company in Africa to achieve CMMI Level 5 status, which will immediately put Techno Brain on a level footing with the 200 other companies in the world with the same standing.

Chief Executive Officer Manoj Shanker said: “This is our long term vision, to build a world class software company. Africa has huge potential and a lot of high tech projects are still predominantly done by big companies from outside who come in, do the project and then leave. “It was a logical extension from training to

TECHNOLOGY

Itaque consed quam aspero et modite volu aborept.

The long term vision is to build a world class software company

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TECHNO BRAIN

Shanker receives the Ernest & Young Award

“The public sector spends a lot of money in automation and needs transformation with technology that will change the lives of the people it serves” – Manoj Shanker, CEO

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January 2015

solutions. It was difficult initially to establish a credible company but slowly we had minor but credible successes, doing small projects which gave us confidence and instilled trust that Africans are as good as anyone else.”

Vital Projects Techno Brain has products and services for many sectors including non-profit/NGO, manufacturing, telecoms, banking and insurance, trading and logistics, education and high tech, with solutions from Business Automation and Identity Management to Data Warehousing and Managed

TECHNOLOGY

IT Services.

Beyond the highly-developed South African market, much of Southern Africa’s IT spend derives from the public sector, an area which Techno Brain is excelling in and proving that Africa can cater for its own governmental technology needs.

“The public sector spends a lot of money in automation and needs transformation with technology that will change the lives of the people it serves,” Shanker added.

For example, in Identity Management the company is deploying its end-to-end solutions in Tanzania and Malawi for passport and border control systems.

Techno Brain’s Integrated Financial Management System has been recognised in Uganda by the World Bank as being the best project of its kind in the world, helping to keep track of and monitor local government spending.

In the tax and revenues domain, the company has allied with Crown Agents in the UK and customised its solutions to meet the needs of customs authorities in countries like Nigeria and Namibia.

Africa 1st The guiding principle of Techno Brain is to create ‘’Made in Africa” solutions that promote selfsustenance, social empowerment, long term economic stability and sustainability, showing that Africans can compete in the global stage.

Key Personnel

Manoj Shanker CEO Manoj Shanker, CEO, Techno Brain Group has been instrumental in setting up Techno Brain and expanding its network to 24 countries across the globe.

He has more than 25 years of extensive experience in Sales, Marketing & Management and in establishing strategic partnerships with industry leaders across the globe. Under his leadership, Techno Brain has grown to become a leading IT solutions provider in Africa and beyond. Manoj is responsible for managing the entire group and creating success in every sphere of Techno Brain’s business. He has travelled extensively around the world and established strategic partnerships with companies such as Microsoft, GET, Oracle, New Horizons, and SAP among others, he has also been named CNCBC’s All African Business Awards 2014 Entrepreneur of the Year – East Africa, Ernest & Young Entreprenuer of the Year Finalist, while Techno Brain was just ranked number 2 in Deloittes Technology Fast50 Company in Africa Prior to Techno Brain, he worked with Digital Equipment Corporation and HCL Ltd. Manoj has completed his Bachelor of Science from St. Francis De’Sales College.

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TECHNO BRAIN

“We have clients such as Facebook, Google, Microsoft and Walmart and are proving that Africans can handle and manage effectively BPO at lower costs” – Manoj Shanker, CEO

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January 2015

No better is this shown than by the company’s work in the business process outsourcing (BPO) sector, dominated by the likes of India, the Philippines and other countries in Asia.

Shanker added: “We now have 500 people in this business and are in Kenya, Uganda, Tanzania, and Malawi addressing many markets. We have clients such as Facebook, Google, Microsoft and Walmart and are proving that Africans can handle and manage effectively BPO at lower costs.”

Techno Brain is carrying out digital indexing work for Google and image processing for Facebook, both of which choosing Shanker’s company over competition in more established BPO territories.

In Nigeria Techno Brain is embarking on a major initiative with the government, while the business is also expanding into Mauritius and Angola. Further afield it is showing its world class pedigree by setting up bases in the United States and acquiring business in the UK. Training Roots Despite rapid expansion in recent years, Techno Brain remains ardently loyal to its roots and continues to lead the field in terms of training opportunities for Africans in IT. “Training is absolutely critical to us continuing success and growth,” Shanker said. “We could not have achieved a lot of what we have done without training people.”

“Techno Brain trains 15,000 people on average

TECHNOLOGY

Shanker enjoys getting involved in the training process

every year, and has to date trained 375,000 people, the largest amount of any technology company in Sub Saharan Africa, which involves very basic processes to advanced programming, security, project management and business development.

Techno Brain has to date also issued 7,000 training scholarships all across Africa though its Africa First initiative.

“We also do vendor specific training. Venetia did a major programme called Skills For Africa and as part of that we are training 200 people on an advanced ERP system.”

Techno Brain’s employees are given a

15,000 Number of people trained by the company every year

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TECHNO BRAIN

“Currently we have level 3 and we are extremely confident of being awarded Level 5, and with this no one can doubt our credibility” – Manoj Shanker, CEO

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January 2015

mentorship programme, involving induction, certifications and project assignments which is tracked and monitored by coaches, a move designed to address the skills gap seen across the continent. Last year the company hired 100 people and this year that number is at least 150.

All 11 products have developed as a result of innovation of the group’s own employees, including MEsure, which monitors the performance of government projects, and Smart Fleet, a fleet management systems which allows companies to track the efficiency of their vehicles.

Continual innovation of home-grown products and solutions will ensure Techno

TECHNOLOGY

Company Information INDUSTRY

Technology HEADQUARTERS

Nairobi, Kenya FOUNDED

1997 EMPLOYEES

1,600 REVENUE

Brain develops even further as a technology operator able to compete with the global heavyweights, with CMMI Level 5 certification sure to act as absolute proof and something which Shanker is confident the company can achieve.

He concluded: “Currently we have level 3 and we are extremely confident of being awarded Level 5, and with this no one can doubt our credibility. It will give us immediate global recognition and help demonstrate that Africa is serious about technology and software services.

“I have massive belief and confidence in Africa, and we have proven you can build a world class company from here.”

$65million PRODUCTS/ SERVICES

IT solutions, Business Process Outsourcing, and Training

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The ETP Plant project

EL-ALAN Invests in Nigeria and beyond to deliver quality design, build solutions and EPC Contracting Written by: Abigail Phillips Produced by: Richard Deane

71

El - A la n C o n s t r u c t i o n c o m pa n y

With a wealth of expertise and an emphasis on quality, ELALAN has built a solid foundation from which to springboard the company to its next phase of development

E

L-ALAN Construction Company was founded in April 1982 as a private limited liability company and today is one of the fastest growing and most dynamic construction and civil engineering companies in Nigeria.

For over three decades El-ALAN has delivered high quality integrated construction solutions. Its initial focus was construction works in the private sector and the company quickly gained a name for itself as a quality contractor. Its success and reputation today is built on the consistent delivery of quality, speed, efficiency and overall client satisfaction.

“We have been in the industry for 30 years and during that time have always put the focus on our clients,” explains Andrea Geday, Managing Director. “We have perfected our craft over the years and our emphasis will always be on quality over quantity.”

Unlike so many of its competitors, EL-ALAN has weathered more than one economic recession and has come out the other side stronger than before. “We have survived all this time in part due to perseverance,” says Geday. “We tighten our belts and focus on

“We have perfected our craft over the years and our emphasis will always be on quality over quantity” – Andrea Geday, Managing Director 72

January 2015

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Panther Investments Ltd

Bel Papyrus Limited

Flour Mills of Nigeria Plc.

Location: Marina Securities Limited

Marina Securities Limited

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Omnia Nigeria Limited established in 1980 is specialized in wide range of Aluminium products such as Doors, Windows, Partitions, Skylight, Curtain Walls, Sunbreakers. We have a large share in the housing and commercial developments in Nigeria and are one of the top companies to offer high end products in this segment.

Plot 8, Adeyanju Daniel Street, Off Oshodi-Apapa Exp. Way, Near Mile 2, Vanguard, P.O. Box 1454 Apapa - Lagos Tel: 01-7738600, 7738686 Email: omnianigerialtd@yahoo.com www.omnia-aluminium.com

El - A la n c o n s t r u c t i o n delivering a quality product, no matter how tough the economy. This has paid dividend on a number of occasions, because when the market picks up again, we have less competition.”

EL-ALAN has also been incredibly smart when it comes to diversifying its product and service offering. “We have developed new complementary arms of the business including MEP building services, Property Development, Facility Management and Logistics,” says Geday.

“We provide complete construction solutions.

The majority of our contracts are turnkey projects. We are involved in each stage of the project, from architectural design, planning approval and construction. We also provide building maintenance and facility management solutions. This holistic approach delivers cost

supplier profile

c o ns t ru c t i o n

Bagco Nigeria Limited

Omnia (NIG) Ltd

Omnia Nigeria Limited established in 1980 is specialized in wide range of Aluminium products such as Doors, Windows, Partitions, Skylight, Curtain Walls, Sunbreakers. We have a large share in the housing and commercial developments in Nigeria and are one of the top companies to offer high end products in this segment.

Management: Mr. Amadio Bellini, Managing Director Website: www.omnianig.com

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We are a well established trading company with profound expertise in ceramic

and porcelain tiles, sanitary-ware, faucet’s and bathroom fittings. info@westafco-ng.com www.westafco.net

Ceilings out of the ordinary go to BSP Ceilings • Water-proofing/insulations • Partitioning • Security fencing wire • Design fabrications of galvanized metal profiles

Tel: 01-7743818, 08023084901 | Fax: 01-5849730 | Email: bspnrcrng@yahoo.co.uk

El - A la n c o n s t r u c t i o n effectiveness, streamlines project management and shortens construction timelines.

“We have truly developed a one-stop-shop service whereby we can take a building from inception to completion, even down to details such as bathroom design,” says Geday.

Not only does the company offer a complete turnkey solution, but it also has all the required core competencies in-house. EL-ALAN has a small database of trusted contractors, subcontractors and suppliers with whom it has worked with for a long time. “This is extremely attractive to our clients,” says Geday. “Everything is managed by us and us alone, which means there is nobody else to hide behind, no excuses.

Every element of the project is controlled by us, which makes completion much easier.”

Getting noticed EL-ALAN clearly has the skill set required to build high-quality structures, however as Geday concedes getting the project in the first place is often the hardest part. In recent years this has been less of a hurdle for the business, which successfully completed a

“We have built our own vocational school to improve the skills of our employees and thus the quality of our work as a company”

c o ns t ru c t i o n

Key Personnel

Andrea Geday Managing Director Academic Qualifications: A. BSc. Nottingham University- Uk, 1979.

B. MSc. Loughborough University- Uk, 1980.

Work Experience: Joined Nicoho Limited as a site supervisor (2000 student hostel, unilag).

Promoted to the position of project manager, Nicoho Limited in 1981 promoted to the position of operations manager, Nicoho Limited in 1982.

Entrepreneurship: Co-founded El-Alan Construction Company Nigeria Limited, a fast and dynamic construction and civil engineering company in Nigeria in 1984 (www.elalan.com).

Co-founded Panther Investments Limited in 1989, a parent company with a teaming number of successful subsidiaries.

Co-founded Soft Solutions Limited(SSL), in 1995, an IT solutions and consulting company (www.ss-limited.com).

Co-founded Provast Limited in 1997, a foremost facility management and maintenance company with branches across Nigeria and Ghana. A joint venture with Shell Nigeria Closed Pension Fund Administrator, SNCPFA (www.provastltd.com).

Co-founded VACC Technical Limited in 2002, a renowned building services company with offices in Nigeria and Ghana (www. vacctechnical.com).

Co-founded Alan Caray Technical and Logistics Limited, distributors of various high quality brands of bathroom and piping solutions in 2004 (www.alancaray.com).

Co-founded Etiwa Limited, a vocational technical training school in 2013.

Co-founded Woodstyles Limited, woodworks and joinery manufacturing 2014.

– Andrea Geday w w w. e l a l a n . c o m

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El - A la n

“We want to be the Bentley or Porsche of the construction world – we want to be a company where people don’t come to negotiate on price, the come because they know what they want” – Andrea Geday

FOR QUALITY CONCRETE BLOCKS & INTERLOCKING STONES/PAVERS We manufacuture & supply: • Blocks (various shapes/sizes) • Interlocking/Paving stones • Cement (retail/bulk purchase) • Chippings • Sharp Sand

number of high-profile builds in the country.

“Landowners and developers have started to sit up and take notice of EL-ALAN,” he says.

“They recognise the fact that we have in-depth market understanding, good knowledge of the Nigerian economy and respect from the local business community. That counts for an awful lot.”

Investing in Nigeria But the company goes much further than supporting Nigeria and Nigerian business it’s investing in the long-term growth of the region too. “We have built our own vocational

The essential building blocks for your construction needs

Head Office-Lagos E: Sales@ufl-nigeria.com T:+234 8034935183

www.ufl-nigeria.com

WE ALSO LEASE/SELL THE FOLLOWING EQUIPMENT: Block Machine Cement/Concrete Mixers Forklift & Loaders

Our block features: • Aesthetic appearance • Durability • Resistance to rain penetration • Fire Resistance • Sound Insulation • Versatility in application • Low maintenance • Economical Factory Address: Plot No. CP/12 Cadastral Zone, 07-05 Dutse Alhaji, Abuja.

Tel: 0700blockworks / 2348037091398 2348033159323 / 2348036644654

Universal Furniture Limited furnishes Towers, www.blockworksonline.com helpdesk@blockworksonline.com Port Harcourt Office: Golf Estate, Abuloma, Rivers State or Road 8, Flat 1A, Agip Estate, Port Harcourt, Rivers State.

Hotels, Offices, Residences, Hospitals, Schools, Laboratories, Banks, Oil & Gas companies ...

Our customers are pioneers in their businesses all over the country.

c o ns t ru c t i o n

school to improve the skills of our employees and thus the quality of our work as a company.

In Nigeria vocational schools are few and far between so next year we are opening our doors to the public and giving more people the opportunity to learn new skills,” says Geday.

EL-ALAN is a proud advocate of Nigeria as a region and believes it has a very bright future ahead of it. “Nigeria has a lot of potential, the world is focusing on us. We have a young and dynamic population as well as a wealth of natural resources. Nigeria is a great place to do business, the market is growing and the future looks very promising,” says Geday.

That being said, the company is not going

Construction projects

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Abuja Hotel

Head office -

Luxury residential

Wapic building

buidling - No 4

Residential Mulistoyried Building - Tango Towers

c o ns t ru c t i o n

to halt at the countries boundaries. “We are looking to expand into Ghana and Kenya and possibly into Nairobi too in the next couple of years. We will replicate the Nigerian model, it has been very successful to date.”

Company Information Industry

Construction

Looking to the future The future outlook at EL-ALAN is robust. As a company there is passion running through its veins and every employee is dedicated to perfecting the craft of the business. Over the years, the company has invested heavily in its future by setting up schools, fine-tuning its supply chain and logistics, developing its core competencies and focusing on quality.

“We thrive on challenges that actively pave the way of progress. We operate on a ‘can do’ basis and have gained a reputation for creativity and innovation in devising solutions to problems that other contractors may dismiss as being too difficult. We always strive for progressive and competitive project solutions,” says Geday.

The foundation is there, the company is now channeling its energy into becoming the best construction company in the region.

“We want people to come to EL-ALAN because they want the best service and end-result. We want to be the Bentley or Porsche of the construction world – we want to be a company where people don’t come to negotiate on price, they come because they know what they want,” concludes Geday.

headquarters

Lagos, Nigeria founded

1982 employees

Not disclosed revenue

Not disclosed products/ services

Construction services

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Hotel Partners Africa

Achieves Global Standards of Excellence Written by: Abigail Phillips Produced by: Richard Dean

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H o t e l Pa r t n e r s A f r i c a

Based in SubSaharan Africa, HPA has built a reputation for offering a quality turnkey solution for hoteliers

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ounded in 2013, Hotel Partners Africa is an alliance of three leading hospitality consultancies - W Hospitality Group, Hotel Spec and Leisure Property Services – each with considerable expertise throughout Africa. With a particular focus on the Sub-Saharan territory, the company has a diverse portfolio of service offerings in the hotel development sector.

Hotel Partners Africa guides its clients through the development lifecycle of a hotel from conception to feasibility, development management to asset management. “We are a turnkey provider of services for hotel investment,” says Vernon Page, Chief Executive Officer, Hotel Partners Africa. “The only thing we don’t do is manage the hotels once they are in operation.”

Under its umbrella of expertise Hotel Partners

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ICL Club Lounge shows the quality of product offered by the company

Africa offers a raft of services to hotel developers and operating companies, providing crucial input and hands-on management throughout the planning, design, construction, renovation and refurbishment stages of new and existing hotels.

Despite being a fairly young business, HPA has been well received by the hotelier sector both in the region and on a global scale. The African hotel industry is one fraught with challenges, and as such industry professionals have welcomed the combined experience bought to the table by HPA. “We offer our clients stability and a pool of knowledge not found anywhere else,” says Page.

“One of the biggest advantages for our clients is that they have a single point of contact throughout the lifecycle of a hotel development, meaning they do not have to search for various advisors and

2013 Hotel Partners Africa is an alliance of three leading hospitality consultancies

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Quantum Global.

Taking African hospitality to the nex Economic Growth Driving Demand

A Hospitable Future Ahead

The case for Africa is not news. The continent has recorded strong economic growth in the last decade and its share of the world’s GDP is expected to triple to 12% by 2050. This massive growth has attracted an increasing amount of international capital, which is perfectly positioned to support Africa’s long-term growth.

Strong growth has also triggered an urbanization trend across sub-Saharan Africa. With higher household incomes and thus purchasing power, Africa’s young and growing population is shaping a new middle class that is fueling internal demand for consumer goods, infrastructure, education, health and other services. It will help secure an unrivalled pool of human capital to support African growth into the future.

Undeniably African economies are flourishing. With a more transparent and relatively stable political climate, business interests are starting to proliferate across the continent. And so are the number of domestic, regional and international business travelers: as they travel across Africa to attend to their widespread business interests, they are driving up steady demand for increased and better business hotel accommodation across sub-Saharan Africa.

Quantum Global Alternative Investments advises manager of a USD 500 million investment vehicle capitalize on the emerging opportunities in the h As a long-term direct equity investor in hotel pro Saharan Africa, the investment structure targets real estate-related investments in superior three star business hotels. These are built to high qual standards, with modern construction and design respond to the growing need for hotel accommo Saharan Africa. The investment structure seeks in opportunities in established growth markets, wit emphasis on prime locations in selected cities of resource-rich countries.

Addressing the Challenges No economic growth is devoid of challenges. In Africa, meeting basic infrastructure needs is undoubtedly the main barrier in securing continued growth. Increased funding and the achievement of operational efficiencies are the cornerstones in addressing such challenges (read our article ‘The catalyst must come from within’ by Ulrich Otto and Minesh Mashru at www. quantumglobal.ch).

On another front, steadfast progress is being made against the common perception of Africa as a challenging place to do business, plagued by inefficiencies, political instability and health concerns. The increased political stability and enhanced business environment in sub-Saharan Africa are reflected in the considerable progress made in the region’s Transparency Index ratings from 2012 to 2014.

www.quantumglobal.ch

About Quantum Global

Quantum Global is an independent and clien investment partner which delivers unbiased advice and services of the highest quality. W and global reach, Quantum Global has the ex to identify and execute unique investment o in Africa.

About Quantum Global Alterna Investments

Quantum Global Alternative Investments (QG Global’s Real Estate, Private Equity and Infras arm. We serve governmental institutions, su Banks and Sovereign Wealth Funds, and advi of investment vehicles that targets direct inv Africa’s growth sectors, including agriculture hotels, infrastructure, mining and timber. QG an investment structure that targets prime re developed markets. With Quantum Global’s investment in complex environments, QGAI w partnership with key stakeholders and advise to maximize investment value and returns th management and value creation.

info@quantumglobal.ch

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nt-focused investment With African roots xpertise opportunities

Meet the

Quantum Global team at MIPIM 2015, 10-13 March 2015, Cannes, France.

You are cordially invited to Quantum Global’s cocktail event on 11 March 2015 on board the Mabruck III berthed in the port of Cannes, France. Please contact Franck Behiblo, Quantum Global Head of Corporate Development, at mipim2015@quantumglobal.ch for more details.

ative

GAI) is Quantum structure uch as Central ise a family vestment into e, healthcare, GAI also advises real estate in experience of works in close es them on how hrough active

www.quantumglo

I N N O V A T I O N

B Y

D E S I G N

S t a u c h Vo r s t e r A r c h i t e c t s I n t e r n a t i o n a l i s c o m m i t t e d t o q u a l i t y d e s i g n, e v o l v e d o u t o f a n e s t a b l i s h e d, mutually beneficial relationship with each of our clients. Continuous consideration of the impact of new projects on the end-user and the public, together with the form, function, and architectural language of the project, are integral to our design process. It is Stauch Vorster Architects International ’s mission to p r o d u c e v a l u e , q u a l i t y, a n d d e s i g n e x c e l l e n c e , u n d e r s t a n d i n g d e s i g n a s a p e o p l e - f o c u s e d e n d e a v o u r.

Cape Town Durban Johannesburg Port Elizabeth

: : : :

+27 +27 +27 +27

21 31 11 41

421 263 268 581

4276 8200 6090 6362

www.svarchitects.com

H o t e l Pa r t n e r s A f r i c a consultants. We provide a one-stop-shop service to developers and owners,” he says.

With close to 100 years of global hospitality knowledge between its partners, the company prides itself in offering a market-leading service.

“A defining point for us is that in sub-Saharan Africa we are the only company to provide all these services,” says Page. “In five years we would have consolidated our position as the leading hospitality consultancy in the region. We know the competition is growing, as business in Africa continues on an upward trajectory, but we have an advantage by being on the ground. Added to that is our unfailing desire to advise our clients in their best interests.”

The impressive list of clients making up HPA’s portfolio is testament to its level of service and expertise. The consultancy has worked with the likes of Hilton, Holiday Inn, Radisson, Sheraton and InterContinental to name just a few and has earned industry wide respect for its proficiency in the planning, management and advisory of hotel developments.

A broad service offering Hotel Partners Africa offers its clients a broad service offering – in fact, its impressive portfolio is one of its many unique selling points. Services offered include:

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“A defining point for us is that in sub-Saharan Africa we are the only company to provide all these services” – Vernon Page, Chief Executive Officer

Market and Financial Feasibility Studies: This is the very first step in the process, after securing the site. There are five main reasons to carry out a w w w. h o t e l p a r t n e r s a f r i c a . c o m

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The Africa Hotel Investment Forum (AHIF) will take place 30 September to 1 October 2015 in Addis Ababa, Ethiopia.

29 Sept - 1 Oct 2014, Sheraton Addis Ababa, Ethiopia

30 September – 1 October 2015

AHIF 2014 was one of the best hotel investment forums I have been to. The programme was excellent, as was the quality of the speakers and attendees.

It is the event of the year for us!

OTHMANE JABRI, KINGDOM HOTEL INVESTMENTS

AHIF is the only annual hotel investment conference that connects business leaders from the international and local markets. The event brings together the who’s who that drive investment into tourism projects, infrastructure and hotel development across Africa.

AHIF is attended by investors, owners, financiers, developers, operators, advisors, architects and senior government officials supporting tourism and travel development.

www.africa-conference.com

Elevating Recruitment to Excellence A critical aspect of being the best business you can be is recruiting and retaining the strongest talent to join your team. Elevation Personnel makes your business our business, we ensure we understand your company culture and requirements in order to provide competent and reliable personnel.

Project Managers - Engineers - Senior Management Elevation Personnel views you as an individual. We invest time understanding your skills, experience and qualifications, together with, your goals and dreams.

We then do our very best to connect you with an opportunity best aligned with your talents and aspirations.

Talk to us and get it right the first time!

Development Management • Project Co-Ordination • Design Reviews • Development & Technical Services • Procurement • Warehousing & Logistics • Installations & Hand-Over

Hospitality - Senior and Executive positions in all sectors In proud association with: For complete peace of mind recruiting services e-mail Petra Devereux. petra@elevationpersonnel.co.za

www.elevationpersonnel.co.za Johannesburg - Cape Town - South Africa - Africa - Global

info@hotelspec.com • www.hotelspec.com

H o t e l Pa r t n e r s A f r i c a feasibility study. First, to ensure full understanding of the risks and rewards of the project; second, to determine the most appropriate facility provision for a given site and market; third, to brief the architect as to what the market requires in terms of facilities; fourth, to attract the attention of an operator and form the basis for contract registration and fifth, to support submissions to debt and equity providers.

Operator Selection and Negotiation: The hotel operator should be engaged early on in the development process to have input in regards to the concept and detailed design of the project.

In addition, sources of funding will want to know who is to operate the proposed hotel – some will not lend or invest unless an international operator has been engaged. The appointment of the correct operator to your project can enhance your financial returns and thus the value of your hotel. The owner / operator relationship is a long term one and needs to be effective and mutually beneficial. HPA have excellent relationships with all of the international and regional (African) hotel operators, and have worked with all of them on projects across the continent.

Raising of Funding: It is virtually impossible to fund a development opportunity or hotel without suitable funding. HPA have unrivalled access to various sources of funding to buy or develop hotels, including:

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Key Personnel

Vernon Page CEO Vernon has over 15 years’ experience of funding hotel developments, sourcing equity and debt for various projects, building hospitality investment funds, and managing their returns. In creating this ‘one-stop shop’, Hotel Partners Africa has established a highly proactive team to build long-standing relationships with major players, particularly hotel operators and developers, fund managers, property owners and all others involved in the hotel development process.

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The W Hospitality Group are specialist consultants to the hotel, tourism and leisure industries in Africa, providing a full range of advisory services to our clients who have investments in the sector, or who are looking to enter them, through development, acquisition or other means.

Stay with the leader

Leading the world for over 30 years in hotel security and technology solutions.

Sentinel II by Elsafe

Xtra II by Elsafe

Signature by VingCard

Essence by VingCard

For more than three decades VingCard Elsafe has been the leader in hotel security solutions. Today, over 40,000 properties around the world trust us to provide the most advanced, secure and reliable solutions for electronic locking, energy management, in-room safes and minibars. Our products are designed to meet your needs for efficiency, convenience and peace of mind, with industryleading technology, sleek designs and user-friendly features for both your staff and guests. With a customer service network that spans the globe, we’re here to help… and here to stay. So stay with the leader – VingCard Elsafe.

VingCard Elsafe Phone: +47 69 24 50 00 | info@vcegroup.com | www.vingcardelsafe.com Provider of: VingCard Locks and Systems | Elsafe Safes | Orion EMS | PolarBar Minibars

Our team has experience of more than 90 countries worldwide, and over 30 in Africa, and has worked at all market levels, from deluxe hotels to roadside lodges, exclusive health clubs to public recreation facilities, and from the master planning of thousand hectare sites to the best use of city blocks.

Our main activities include market and financial appraisals, operator selection and contract negotiation, and asset management. www.w-hospitalitygroup.com trevor.ward@w-hospitalitygroup.com 01-791 4165

Leisure Property Services

Best Western welcomes hundreds of thousands of guests nightly, ready for your share?

Best Western hoteliers enjoy the unique advantage of retaining their independence while benefiting from Best Western’s full-service, well-known, lodging affiliation which offers a global reservations system and distribution along with loyalty club (Best Western Rewards®), revenue management and Customer Care training.

SM

Vīb (pronounced Vibe) is a stylish and technology-centric hotel concept created to meet the needs of today’s connected traveler. Vīb’s high-density concept will be cost-effective to build and operate, making it an attractive option for owners and developers.

bestwesterndevelopers.com +353 1 460 5100 internationaldevelopment@bestwestern.com Each Best Western® branded hotel is independently owned & operated

At LPS we undertake a wide range of hotel related services including acquisitions, disposals, valuations, rent reviews, operation selection & management contract negotiations.

Our geographic knowledge covers the UK, Europe, the Americas and Africa.

Call our team based in London on +44 203 754 9174.

H o t e l Pa r t n e r s A f r i c a

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Equity: -- Both minority or majority equity for development projects, new or partially completed; -- Additional equity for operational assets.

Debt: -- Construction debt; -- Operational debt; -- Refinancing of existing debt; -- Mezzanine instruments.

Development management: Complete hotel development management services, which includes advice, recommendations and negotiations with nominated professional teams; project coordination; budget management; programme and quality assessment reporting; overall project monitoring to ensure coordination between operator requirements and all services; design and finishes; contractual conditions; budget evaluation to completion, and hand over of operation. Working closely with the client’s architects, engineers and interior designers to ensure all the client’s and brand specific requirements are met.

With the company’s experience of advising owners on developing and refurbishing hotels around the African continent and specific specialised knowledge of the workings and requirements of hotels it will ensure that all integrated systems such as IT, AV, MATV, PBX,

“We work with the best architects, engineers, quantity surveyors and content managers.

A hotel is a complex animal” – Vernon Page

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H o t e l Pa r t n e r s A f r i c a security, life safety etc. are seamlessly integrated in order to create a cost efficient and correctly specified hotel operation. All back of house areas from receiving to waste management, housekeeping, stores, administration and kitchen operations are correctly specified and provided to ensure a smooth operating environment, compliant with all local building, fire and safety regulations.

Lagoon Beach Hotel, sea-view room

LBH, Cape Town, South Africa

Procurement: HPA manages its clients procureent needs from sourcing products at the most competitive prices globally to ongoing coordination with the interior designer at all stages of the development. It will even help its clients manage budget. Furniture, fixtures and equipment is all custom-made to the specification of the design consultant in terms of material, colour, fabric, foam, size and design and ongoing inspections and quality control management ensures quality and suitably specified furniture is manufactured and delivered to the project.

Kitchen, laundry, technical and back of house areas are all coordinated closely with the operator.

Warehousing and logistics: Consolidation services and co-ordination of all logistical services from import/export, customs clearing, insurance and forwarding. With an average turnaround of between 60 to 80, 40 foot containers annually spanning across Africa and the world, its automated tracking, inventory, warehouse and

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freight management systems will ensure that all shipments arrive on site and in line with the project program.

Installation Services: The company’s on site Project Team receive all items of FF&E, OS&E and other equipment and position and install items of FF&E in in the correct location as per approved drawing specifications. Project Team services include: • Inventory control and reporting of all goods received on site and reconciled to approved budget and official orders.

• The correct positioning of all FF&E items within the property according to the interior furniture lay-out drawings as issued.

• Hanging of all artworks and mirrors to the specification issued on the Interior Designers’ layout and elevation plans.

• Perform any minor repair work to FF&E, which after positioning in the property is found to be damaged or to return such goods to the manufacturer.

• Where applicable, to commission all kitchens, IT, telephone, television and AV equipment, including the tuning and “burning-in” of all such equipment as required, and to ensure sufficient training is provided to the hotel’s staff on its safe operation.

• Individually bar code all items of FF&E once in place within the property and to build a detailed asset register of all FF&E items.

70 Average number of forty foot containers moved annually using its automated tracking systems

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H o t e l Pa r t n e r s A f r i c a

SHL suite

‘We even provide advice to the Royal Institution of Chartered Surveyors (the valuers governing body) on how hotel valuations should be carried out.’

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The asset register shall include the following information: 1. Item description 2. Location within the property 3. Value at date of purchase Valuations: To secure finance it is essential to ensure that the project is sound and that is where a valuation becomes vital. Bank funding is usually predicated upon loan to value ratios and the ability to make scheduled repayments.

At HPA we can provide formal secured lending valuations, stock market valuations and more informal internal valuations. Our team has carried out valuations for most banks who are active in funding hotels. We even provide advice to the Royal Institution of Chartered Surveyors (the

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valuers governing body) on how hotel valuations should be carried out.

Asset Management: The primary objectives of an asset manager is to act as an expert interface between the owner and the operator, while assisting hotel owners to realize the full value of their assets through a continuous process of value creation and enhancement.

Talent Acquisition: The importance of sourcing suitable, passionate, talented and experienced staff from executive and management level down who can add the most value to the business and its guests, forms the basis upon which the company approaches its talent acquisition process. Culture and attitude play a key role

Location management is an integral part of HPA services

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Mark Martinovic, Head of Design & Construction

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in the identification of these individuals. This coupled with working very closely with clients to understand their objectives, company culture and environment to ensure a good staff morale, high level of service and low staff turnover makes the service a success.

Brokerage: At some stage, it is likely every owner will consider disposing of even the finest hotel.

HPA recommends early in the ownership process considering the likely program for disposal, to ensure the right strategies are put into place.

HPA can provide comprehensive and strategic ownership advice, and, at the right moment, will help to dispose of the asset in the most productive way, to suit its client’s particular investment goals.

The team has an unrivalled track record of hotel disposals in Africa, generating exceptional sales prices from its comprehensive network of hotel investors from around the world.

Overcoming challenges Despite making strides in the industry, not all has been plain sailing for HPA. Doing business in Africa comes with a unique set of challenges including a lack of funding, the threat of terrorism and additional concerns such as the recent Ebola crisis. “It can be hard to attract investors being a fairly volatile economy. That being said, business is moving to Africa, so even with the challenges, it is a fertile ground for hotel development. From our perspective, for the next 20 years there will be

The company specializes in talent acquisition and recruitment services to clients throughout Africa

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H o t e l Pa r t n e r s A f r i c a

The Hilton in Abuja

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compounded growth in the industry,” says Page.

That growth is due to a number of factors. In the last decade Africa has discovered additional resources in the oil and gas sector, it is also an emerging economy, meaning investors and business people need hotels to stay in, which ultimately leads to a spike in development.

Furthermore, tourism is constantly on the rise.

“A lot of the African hotels are achieving much higher room rates compared with anywhere else in the world. The Hilton in Abuja for example, is the most profitable Hilton worldwide and you pay more to stay there than you would in London or Paris. A good service provider with good security, high-end rooms, facilities and catering can charge what they want. Return on investment in Africa can be seen in three to five years, where as the global average is seven to 10 years,” explains Page.

Procurement and logistics also presents a challenge for the company. “Logistics in Africa is unreliable at best,” says Page. “Ports, rail and roads are almost non-existent so supply chain management and sourcing commodities can be tough.” In the hotel sector there are a lot of requirements from a goods perspective – from furniture to kitchenware, linen to lighting there are a lot of moving parts to consider.

So as Page explains, business in the region can be a “hard slog” at times, but the investment can pay dividends. “The challenges are all part of the fun,” he says.

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The company works with the best interior designers

Focusing on quality HPA doesn’t only offer its clients logistics support, funding advice and project management expertise but also helps achieve standards of excellence from a quality perspective. “We advise developers to develop hotels in line with international standards,” says Page. “We work with the best architects, engineers, quantity surveyors, content managers, and other consultants from landscape architects, interior designers, acoustic specialists and fire and safety experts. A hotel is a complex animal.”

“Imagine a hotel with 250 rooms and how much water, electricity and heating you use, how much sewerage, and air conditioning - you cannot just open the yellow pages, you need specialists.”

“We work with our clients from day one,

“Imagine a hotel with 250 rooms and how much water, electricity and heating you use - you cannot just open the yellow pages, you need specialists” – Vernon Page

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H o t e l Pa r t n e r s A f r i c a

Quality is king at HPA

“We want to support local suppliers and develop local communities, which are very important to us. Where we can we source local artwork, furniture and employment to support community development” – Vernon Page 102

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throughout the design and build process through to completion. We manage everything from air quality and temperature to fire and security.

We also manage branding and maintain global standards of excellence,” he says.

Creating local opportunities Quality is king at HPA, but its directors recognise that high standards will not be met without a good team of people behind the business.

With this in mind, the company is dedicated to building quality relationships with global and local suppliers.

“We want to support local suppliers and develop local communities, which are very important to us. Where we can we source local

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Company Information Industry

Construction headquarters

Lagos, Nigeria founded

2013 employees

20 in 3 member companies

artwork, furniture and employment to support community development,” says Page.

revenue

Not disclosed

Marketing and growth In its short lifetime, HPA has earned a reputation in the sector synonymous with quality and excellence and that is in part due to the combined experience of its founders. “We are all well respected and experienced consultants in the region, plus we all live and work here, which adds to our credibility. We speak at various conferences and events, and are recognised as experts in the field. In the next five years our goal is to be the first choice hotel service provider for developments throughout the continent,” Page concludes.

products/ services

Consultancy service offerings in the hotel development and operational sector

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