African Business Review magazine - October 2016

October 2016

Revealing

Africa’s best

logistics performers

www.africanbusinessreview.co.za

Digital natives

Microsoft on how the ‘gig economy’ is transforming business

TRADE AND

TECHNOLOGY Are these the keys to Africa’s future? We spoke to Gautam Sashittal, CEO of DMCC, to discover more

Sound to the core

Ausdrill on growing a culture of innovation and lean thinking in the mining industry

8 – 10 NOVEMBER 2016

4TH

HOTEL KING FAHD PALACE DAKAR, SENEGAL

L A N O I T A RN E T N I L A G E SEN N & EXHIBITIO E

NC E R E F N O C MINING

ver for le a , r o t c e s “The mining ent” m p lo e v e d l ia territor Under the High Patronage of His Excellency Macky SALL, President of the Republic of Senegal Organised by:

Platinum Sponsor

Gold sponsors

Silver sponsors

Bronze sponsors

Associate Sponsor

RÉPUBLIQUE DU SÉNÉGAL

Official Regional Law Firm

MINISTÈRE DE L’INDUSTRIE ET DES MINES

www.simsenegal.com

EDITORS COMMENT

Africa’s growth in trade WELCOME TO OUR latest issue. 2016 is nearly over, so we’ve been looking back at the year’s stats and studies - the figures and facts that reveal Africa’s annual performance. Foreign Direct Investment (FDI) has grown. There’s been expansion in the aviation industry.

Tech start-ups are booming. Interestingly, African trade (both intra and inter) has had a very succesful year.

Dubai state entity DMCC released a report titled The Future of Trade - naturally, we got in touch to discover what they’d dug up about Africa (p. 6). The World Bank has also acknowledged African trade as a dynamic sector. In our monthly list (p.22), we break down the bank’s recent Logistics Performance Index.

Microsoft’s Isabell Scheuber takes us from trade to tech in our third feature. As General Manager for Marketing and Operations, Middle East and Africa, Scheuber’s penned a great piece about the changing gig economy.

Have a browse through our features, and as always, please let us know what you think. We hope you enjoy your read.

Enjoy the issue!

Wedaeli Chibelushi Editor Wedaeli.chibelushi@bizclikmedia.com 3

2 – 3 November 2016 CTICC, Cape Town, South Africa

Developing Future African Cities DEVELOP YOUR PROPERTY PORTFOLIO IN THE TOP 10 AFRICAN CITIES Meet government officials and town planners from Africa’s real estate hotspots. Broker deals, drive real estate projects forward, expand your asset base and realise above market average double digit returns at this year’s launch of the African Real Estate Summit, taking place from 2 – 3 November in Cape Town.

Why is the African Real Estate and Infrastructure Summit for you?

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View city plans and development launches from Africa’s top cities. Confirmed cities include: Dar es Salaam, Tanzania | Kigali, Rwanda | Lusaka, Zambia | Nairobi, Kenya | Luanda, Angola | Kinshasa, DRC | Johannesburg, South Africa | Cape Town, South Africa | Kigamoboni New City Development, Tanzania | Lilongwe, Malawi

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Make this your annual African meeting place with the commercial, industrial, retail and residential property sectors

The African Real Estate and Infrastructure Summit is the only meeting place for commercial real estate in Africa. To discuss your company’s participation or to secure your seat please, contact our team below: Cape Town Stephan Herman, +27 21 700 3598 stephan.herman@spintelligent.com Invited Host City:

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London Russell Hughes, +44 (0) 20 7384 8017 russell.hughes@clarionevents.com African Event Specialists:

CONTENTS

08

F E AT U R E S

PROFILE

TECHNOLOGY

16

The rise of digital natives

Trade and Technology LIST

24

Africa’s top ten logistic performers 5

CONTENTS

Company Profiles

42 Project Isizwe

Technology

28

Africa Health Business Symposium Association

52

64

Egyptian Steel Construction

Barloworld Equipment Supply Chain

7

PROFILE

Trade and

technology Are these the keys to Africa’s future?

DMCC (Dubai government entity and world leader in global trade) recently compiled an in-depth report:“The Future of Trade”. The exhaustive study explored world trade patterns, but its findings in Africa were particularly interesting. We spoke to Gautam Sashittal, CEO of DMCC, to discover more Writ ten by: WE DAE LI CHIBE LUS HI

PROFILE Can you give me a brief overview of what DMCC does?

The most successful markets create conditions that enable producers, traders and consumers to thrive.

DMCC is a Dubai government authority established in 2002 to grow commodity trade flows through Dubai. We are committed to developing these ideal conditions from physical through to digital and financial infrastructure – including our Free Zone, commodity exchanges, legal and regulatory frameworks and our real estate.

As a result, Dubai is the world’s leading physical gold market today, one of the world’s top three hubs for the diamond trade, while the UAE is the world’s leading re-exporter of tea.

From a DMCC free zone point of view, home to startups, SMEs and some of the world’s

largest international conglomerates, we welcome seven new member companies every working day, having seen exponential growth from 28 companies in 2003 to over 12,000 today. We are also the best free zone in the world according to Financial Times’ fDi Magazine Global Free Zone of the Year Award 2015.

Can you provide some background information on yourself?

I was appointed Chief Executive Officer of DMCC in February 2014.

I spent a large part of my career in the oil and gas industry with Royal Dutch Shell plc, and I bring over 25 years of international business and commodities experience to the region.

Prior to joining DMCC, I was the CFO of the DGCX (Dubai Gold and Commodities Exchange), the Middle East’s first derivatives exchange.

I am a Registered Chartered Accountant; board of directors member of the DGCX, the Dubai Diamond Exchange (DDE) and Concordia.

To produce The Future of Trade report, did you carry out extensive research on Africa?

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October 2016

TRADE A N D T EC H N O LO G Y: AR E T HE S E T HE K E Y T O A F R ICA’ S F UTU R E ?

The report is built on insights shared by more than 130 experts across five global cities. One of those cities was Cape Town. We welcomed experts from industry, government, academia and business from across the continent. Their insights form the foundation of The Future of Trade. The report is also produced in conjunction with futureagenda.org and the Centre of Economics and Business Research (CEBR), a leading independent UK economics consultancy.

Your report quotes astute writer William Gibson: “the future is already here; it is just unevenly distributed”. How does Gibson’s theory relate to trade and technology in Africa?

“The future is already here; it is just unevenly distributed” describes one of the fundamental elements of economics – supply and demand.

In Africa, some countries are better positioned than others in terms of infrastructure, GDP per capita and a growing middle class. Nigeria and South Africa versus Mozambique and Uganda is a good example. Those

more-developed countries, like Nigeria and South Africa, are in a much better position to capitalise on increased rates of global trade. Our research in The Future of Trade supports this. Digital technology has become the great leveller. That is to say, with the application of highly efficient and low cost digital technology across every level of the supply chain. Even those countries that have (until this point) lagged behind in economic and social development will get a significant boost. So it is much more likely that the ‘future of trade’ will be more evenly distributed than we are used to, and that will be a welcome change across Africa and the rest of the world.

Africans have a huge appetite for technology and as long as the infrastructure can support it, trade will be a direct beneficiary.

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PROFILE Could you be more specific?

Which technology will drive the future of trade in Africa?

The mobile communications sector is and will remain a key driver of economic growth in Africa. There are more than 400 million mobile subscribers across the continent today. Mobile technology will help address socioeconomic challenges, particularly digital and financial inclusion, and enable a host of services. One such service is the internet. The Future of Trade report highlights that sub-Saharan Africa has fewer than 20 percent internet usage. Mobile technology fuels e-commerce, which fuels trade. It is all intrinsically linked, but ultimately the result is that trade is the product of these connections. Africans have a huge appetite for technology and as long as the infrastructure can support it, trade will be a direct beneficiary.

That sounds great, but will some African countries benefit more than others from the digitalisation of trade?

It goes back to the point of uneven distribution of resources. The key to success is infrastructure, logistics and technology. The countries that 12

October 2016

have all three in place will benefit the most. Our research in The Future of Trade report suggests that a full digitalisation of trade could lead to a big increase in the number of businesses exporting in sub-Saharan Africa. This will certainly be driven by a rapid expansion of mobile technology.

By 2025, research suggests, half of sub-Saharan Africa’s one billion population will have access to the internet, with 360 million of them connecting via smartphones.

This connectivity will provide huge trading opportunities.

Africa (especially countries such as Kenya and South Africa) is already well versed in mobile banking. How, if at all, can this technology affect future trade in Africa?

According to The Future of Trade

TRADE A N D T EC H N O LO G Y: AR E T HE S E T HE K E Y T O A F R ICA’ S F UTU R E ?

report, M-Pesa “demonstrates how connectivity can assist in leapfrogging traditional cash based infrastructure and create an environment where businesses can flourish”. There are now 19.9 million active users. This specific technology has driven social and economic transformation. Hundreds of millions have directly seized upon the opportunity provided by this technology. It has linked innovation with industrial production; it has driven investment in infrastructure and manufacturing. It has enabled Africa to achieve inclusive economic growth.

Will the digital revolution in trade affect who Africa trades with?

As Africa grows and develops further, its trade partners will change.

Developing nations now account for half of all Africa’s trade. The Future of

China accounts for 17 percent of Africa’s trade Trade report states that China accounts for 17 percent of Africa’s trade, a figure that has doubled over the last decade. India takes up six percent of Africa’s trade and Brazil takes up three percent. Figures across the board are rising, with countries from Asia, South America and the Middle East all actively trading more than ever before with Africa. Another important development of the digital revolution is trade within Africa. There is more cooperation, cross-continent agreements, allocation of trading zones and large-scale investments into infrastructure.

How about what Africa trades? Will the digital revolution affect that?

The Future of Trade report has some important insight into this. What we noticed 13

PROFILE

70%

10%

“

70 percent of the world’s diamonds and 10 percent of the world’s oil is in Africa”

was an important shift occurring across many African countries in what was being traded just a few years ago compared with today. Most of Africa has traditionally relied upon the trade of commodities. Today, as wealth increases, so too do sectors like the service industry.

Africa has a trove of mineral wealth that it has mined for a number of years. The Future of Trade reports that 70 percent of the world’s diamonds and 10 percent of the world’s oil is in Africa. Nigeria, for example, is still largely dependent on oil, but the important shift has been the creation of a bustling service industry that now makes up 60 percent of Nigeria’s GDP. African countries are specialising in the fields their people and resources can handle, such as Kenya and Democratic Republic of Congo investing more in mobile technology, healthcare, and financial platforms.

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October 2016

TRADE A N D T EC H N O LO G Y: AR E T HE S E T HE K E Y T O A F R ICA’ S F UTU R E ?

Africa’s workforce is predicted to be the largest in the world by 2040. Can you talk about whether Africa’s labour surge will be relevant in 2040, in light of the predicted increase of automation in trade?

Automation in trade is often misinterpreted as a negative for employment. But the Future of Trade report suggests it is actually a very positive indication of economic development. Historically, when dangerous, repetitive, laborious jobs are automated to highly efficient Artificial Intelligence (AI) systems and robotics we see economies rapidly evolving. Look at Henry Ford and the development of the production line. A great example of a push into automation that changed many people’s livelihoods for the better.

Automation and economic development go hand in hand. Africa is in a good position to enjoy an increase in both areas.

Finally, can you talk about how the internet will affect future trade in Africa?

The internet is the future of trade.

The internet represents something fundamental to all people - free flow of information. It helps to educate the population. raise the standard of living, assist in the supply of goods and services, creates a larger market to buy and sell goods and services, and allows the people of Africa to have a universally accessible platform to communicate with each other and the rest of the world. The internet really is the central nervous system of global human interaction and is absolutely essential to the future of trade.

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TECHNOLOGY

The rise of

digital natives How the ‘gig economy’ lets us hit refresh on our work lives W r i t t e n b y : I S A B E L L S C H E U B E R , G e n e r a l M a n a g e r, Market ing & O per at ions for Microsof t Middle East & Africa

TECHNOLOGY

WHAT ARE YOU doing with your life? Maybe you’re a recent graduate, ready to put a tentative toe on the career ladder. Perhaps you’ve been working for a few years and want to take control of your life and put your experience to better use – if only you could figure out your big idea. Or else you’re sitting at your laptop, quietly figuring out how to make your mark on the world.

What you’re probably not doing is looking for a company that you can call home for the rest of your days. That’s because we’re waving

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October 2016

a collective goodbye to outdated notions of success. We now want – and sometimes need – to embrace careers that give us the opportunity to try new things and explore our passions to make a living.

These changes in working attitudes are fuelling the ‘gig’ economy. A working model that involves taking on lots of different jobs or interesting projects, for shorter periods of time.

The concept is nothing new. The word gig was coined by musicians in the 1920s, at the height of the Jazz Age, as shorthand for ‘an

19

TECHNOLOGY engagement’. Artists, musicians and photographers have been working this way for years. But now this style of working is about to hit the corporate mainstream with today’s technology empowering entrepreneurs. Start-ups within the sharing economy such as AirBnB and TaskRabbit are making it easier for anyone to tap into new ways to earn. Etsy allows the creativelyminded to sell their wares on a global marketplace, while blogs and social networks like Instagram and YouTube help people build a profile doing what they love, and start generating attention that can help turn their passion into a career.

These changes don’t just benefit you as the worker. Businesses of all sizes are growing wise to the advantages of the gig economy and turning to an increasing amount of freelance support. Corporate managers understand that injecting a regular flow of external perspectives and fresh creativity can help them grow their organisations. By embracing project based working, they can also adjust focus and resources as needed. Meanwhile, you get the flexibility to try a wider variety 20

October 2016

of roles in different environments.

So, this flexible world suits your ambition and way of working.

You can accept that our world is constantly evolving and you want to play your part. Where do you start?

Don’t be scared to blur work and play Look at your own interests and assets and consider how they could enhance what you could offer to employers. For example, if you spend time volunteering for organisations including things like tutoring students, building schools or working in a homeless or refugee shelter during a break in studies, speak to your manager about ways that you can contribute that experience to your company’s Corporate Social Responsibility (CSR) initiatives. You’ll get a chance to share your knowledge and experience while helping your firm to contribute to the community perhaps in new and innovative ways.

Creativity is your biggest asset The ability to bring the outside world into the office, and provide a new perspective, is one of the biggest reasons businesses are looking to hire

T H E R I S E O F D I G I TA L N AT I V E S

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TECHNOLOGY

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October 2016

T H E R I S E O F D I G I TA L N AT I V E S

people like you. But having creative ideas is no use if you can’t express them in a way that grabs attention and gets your message across.

Experiment with tools and tricks that suit you. Try technology that helps you share ideas and information in a visual way, or services that analyse and unpick complex data to get your point across. Bring the outside in: discussions in social networks, things that inspire you and your peers, or innovation you’ve seen in your daily life, and share it with your teams as inspiration. Your ideas will sing if they’re centred on your own passions. Having some tricks up your sleeve in a job interview or your first meeting with your new boss could help set you apart from the masses.

Set up time – virtually or in person – to discuss how these might work in your organization and how you could work together to make them a reality.

Build a network Switching jobs or roles more frequently means you’ll need to get used to working with different teams, in different locations and across different industries. Today, there are really no geographical or technical

barriers – your attitude and ability to share ideas and resources is the key to success. Being ready to plug in and get started immediately will make moving around that little bit easier and collaborate with your adopted team. Keeping track of your contacts and knowing who to tap up for support as you move around is essential, and makes working with like-minded individuals simple.

The relationships you establish and cultivate will help you expand your knowledge, provide invaluable career advice and could even help you secure your next gig.

Be prepared to start again The concept of a ‘regular’ day in the office no longer exists. ‘9 to 5’ is a thing of the past, and startups are questioning whether they even need permanent offices. So why should your career continue to follow a traditional path? Don’t be afraid to course-correct if the role you’re in isn’t working out. With employers increasingly looking for soft skills, focus on the transferable knowledge you acquire along the way when considering a jump between jobs or industries.

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LIST

Africa’s top ten

logistic performers Writ ten by: WE DAE LI CHIBE LUS HI

When it comes to logistics, which African countries perform the best? We present the top ten logistics performers on the continent, based on stats from The World Bank. The list captures a broad variety of factors, such as infrastructure, procedures, regulations, geographic characteristics and political economy.

LIST

Performance is reasonably consistent within integrated subregions. Western and Central Africa shows lower performance than Southern or East Africa.

World Bank Logistics Performance Index (LPI) score

1 2 3 4 5 6 7 8 9 10

South Africa Kenya Egypt Botswana Uganda Tanzania Rwanda Algeria Namibia Burkina Faso

LPI SCORE SUMMARY

Percentage of global highest performer

3.78 3.33 3.18 3.05 3.04 2.99 2.99 2.77 2.74 2.73

October 2016

3.78

SOUTH AFRICA UGANDA BURKINA FASO

26

86.0 72.3 67.7 63.4 63.3 61.7 61.6 54.9 54.1 53.7

3.04 2.73

A F R I C A’ S T O P T E N L O G I S T I C P E R F O R M E R S

The Northern Corridor (serving Burundi, Rwanda, Uganda, Kenya, DR Congo, South Sudan and Tanzania) plays a vital role in trade. Previously, it had several limitations. The Single Customs Territory, introduced in 2012-13, has significantly reduced logistics costs.

Together with the United States, South Africa is one of the few countries that has a steady, statistics-based time series of macrologistics costs.

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Growing the bu of health in Af

AFRICA

HEALTHCARE FEDERATION

usiness Africa

Written by Amee S Choksi Produced by Nishit N. Shah

A F R I C A H E A LT H B U S I N E S S S Y M P O S I U M ( A H B S )

Kenya plays a proud host to the Africa Health Business Symposium (AHBS), an inaugural healthcare focused event taking place from 6th – 7th October, 2016 at the Safari Park Hotel in Nairobi. At this event, the five regional federations of Africa will congregate to form a unified platform, Africa Healthcare Federation (AHF). The platform will promote Public-Private Partnerships (PPP’s) for health in Africa.

I

n 2012, the East Africa Healthcare Federation (EAHF) was formed when five East African countries, namely, Uganda, Tanzania, Kenya, Rwanda and Burundi signed a communique witnessed by high ranking government officials and leaders from the health sector. Having made significant progress since the launch of EAHF, the West African region have been truly inspired and embarked on a similar journey of a unified health platform.

In July 2016, 15 countries, constituting both Anglophone and Francophone countries – Benin, Burkina Faso, Cape Verde, Cote d’Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo came together in Dakar, Senegal to launch the West African Private

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October 2016

Healthcare Federation (WAPHF), to tackle common healthcare challenges that affect the West African region.

This historic event was witnessed by

by Dr. Awa Marie Coll Seck, Minister of Health Senegal, Hon. Madina Rahman, Minister of Health Sierra Leone, Mr. Zouma Salifou, Director at West African Health Organization, officials of USAID, World Bank/IFC and the captains of the health industry of West Africa amongst several other dignitaries.

At this event, Chairman of Africa Health Business Symposium and Kenya Healthcare Federation, Dr. Amit N. Thakker, met with Hon. Awa Marie Coll Seck, Minister of Health, Senegal at Forum Sous Regional de Alliances du Secteur Prive de la Sante in Dakar to foster the relationship between WAPHF and EAHF, as well as to nurture

G R O W I N G T H E B U S I N E S S O F H E A LT H I N A F R I C A

Pictured: EAHF Board - Dr. Peter Kamunyo (Kenya), Dr. Dawit Haillu (Ethiopia), Dr. Ian Clarke (Uganda), Dr. Jean Nyirinkwaya (Rwanda), Dr. Mayen Mayen (South Sudan), Dr. Gerard Ngendahimana (Rwanda), Dr. Kaushik Rammaiya (Tanzania), Dr. Amit N. Thakker (Kenya), Dr. Francis Oromo (South Sudan) and Dr. Nazir Arab (Tanzania)

the relationship between WAHO and Africa Healthcare Federation.

Similar initiatives are currently ongoing to develop regional federations for the Northern, Central and Southern African regions.

The Africa Health Business team together with McKinsey & Co. have identified five game changers that are critical in improving healthcare delivery across the continent. These include:

that is affordable and relieves the customer of financial strains. As opposed to out-of-pocket payments, it does not require immediate payment upon service delivery.

This year the United Nations has formally listed Universal Health Coverage (UHC) in the new Sustainable Development Goals to be achieved through 2030 as below: ‘Achieve Universal Health Coverage, including financial risk protection, 1. Healthcare Financing towards access to quality essential health care Universal Health Coverage services, and access to safe, effective, Universal Health Coverage (UHC) quality and affordable essential provides for quality healthcare services medicines and vaccines for all’

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A F R I C A H E A LT H B U S I N E S S S Y M P O S I U M ( A H B S )

With 2015 as the target year for the MDGs, Africa lags behind in many of the targets due to a lack of Government spending on health with fewer than 10 countries in Africa budgeting at least 15 percent of their national budget for health.

Dependency on foreign financial assistance needs to be reduced and the continent needs to lean towards sustainability by focusing on implementing a UHC that has the potential to transform health systems in Africa.

World Bank President Jim Yong Kim stated, “The most equitable and sustainable way to achieve the health outcomes we all want is through Universal Health Coverage.’’

There is limited information on financial risk protection in many countries in the region and health insurance schemes are fragmented, leaving out the informal sector—which usually represents a huge percentage of the population. Further, health systems lack the capacity to respond effectively to threats of communicable diseases like Ebola virus disease, as

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October 2016

the recent Liberian and Sierra Leonean experiences aptly demonstrated.

The purpose of UHC is to meet population needs for quality health care, remove financial barriers to health care access, reduce incidence of catastrophic health expenditures, attain national and internationally agreed health goals, and ultimately contribute to poverty alleviation and development.

There is evidence that broad health coverage, facilitated by extended risk pooling and prepayment, generally leads to better access to necessary care and improved population health, particularly for poor people.

Alternative Financial Models such as Risk-Pooling Arrangements have the ability to contract with provider organizations for the provision of care and thus encourage the development of higher-quality, more organized private sector providers. These are regarded as a more equitable method for financing healthcare as compared to out of pocket payments which currently comprise 75 percent of payments in most African countries. Through such arrangements it is also possible

G R O W I N G T H E B U S I N E S S O F H E A LT H I N A F R I C A

“The most equitable and sustainable way to achieve the health outcomes we all want is through Universal Health Coverage.”

– World Bank President Jim Yong Kim

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A F R I C A H E A LT H B U S I N E S S S Y M P O S I U M ( A H B S )

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October 2016

G R O W I N G T H E B U S I N E S S O F H E A LT H I N A F R I C A

to reach the bottom of the pyramid by subsidizing coverage for these groups while encouraging sustainable improvements in health care provision by allowing the private sector to care for those able to pay for their services.

Since 2005, there has been an increase in the number of African countries pursuing the goal of providing universal health coverage, including Benin, Burkina Faso, Congo, Democratic Republic of Congo, Ghana, Gabon, Lesotho, Kenya, Nigeria, Rwanda, South Africa, Swaziland, Uganda and Zambia, however, they cover only a small proportion of the population.

Achieving UHC and raising sufficient resources to strengthen the health systems is a complex process that involves collaborated decision making among relevant stakeholders, including governments, development partners, donors, etc. to support policies that promote ‘’equity, efficiency and effectiveness’’ within the health system. However, through a unified approach, they can help to significantly expand the number

of people covered by risk pooling arrangements, with substantial benefits to health care, thereby optimizing resource use and maximizing results. .. The underlying question persists, will Africa be able to keep pace with the increasing growth of health expenditures in correlation to the availability of funds for health?

2. Bridging the gap in Human Resources for Health Sub-Saharan Africa, with about 11 percent of the world’s population bears over 24% of the global disease burden, is home to only 3percent of the global health workforce, and spends less than 1 percent of the world’s financial resources on health. As a comparison, The Americas (mainly USA and Canada) are home to 14percent of the world’s population, bear only 10percent of the world’s disease burden, have 37percent of the global health workforce and spend about 50percent of the world’s financial resources for health.

One of the common shortages in the African healthcare sector has consistently been an inadequate,

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A F R I C A H E A LT H B U S I N E S S S Y M P O S I U M ( A H B S )

skilled health work force, as was exposed during the recent Ebola outbreak. According to the above statistic by the WHO, the health personnel to population ratio has been astoundingly low through-out the years. The core of all health systems are a health work force that facilitate the implementation of health care services. Hence, this inadequacy has led to serious impediments in health care delivery and outcomes.

One of the important things to consider about this inadequacy is that it is a fixable problem - the inadequacy is not an insufficient number of health workers but an inadequacy in the number of skilled workforce.

Additionally, due to lack of better career opportunities at the home country, the trained manpower tends to migrate to developed countries.

A systems-strengthening approach needs to be implemented that focuses on building resilient health systems, rather than addressing each problem as it arises, as was the case during the Ebola outbreak and HIV/AIDS response. In addition to the specialists,

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Institutions need to consider training more front line health workers that would help promote sustainable community health systems. This would ensure a more balanced and efficient workforce, but success in taskshifting is contingent upon having the correct mix of skills, supervision and support structures in place. (WHO) The global health workforce crisis can be tackled through effective public-private partnerships and interventions that would provide better career opportunities to ensure that talent is retained within the country.

Only when enough health workers can be trained, sustained and retained in sub-Saharan African countries will there be meaningful socio-economic development and the faintest hope of attaining the Millennium Development Goals in the sub-continent. (WHO)

3. Fostering investments through Public Private Partnerships The private healthcare sector constitutes a very important component of Africa’s health care systems. It consists of for-profit

G R O W I N G T H E B U S I N E S S O F H E A LT H I N A F R I C A

Dr. Amit N. Thakker, Chairman of Africa Health Business (left) engages with Dr. Awa Marie Coll Seck, Minister of Health, Senegal (right) and Dr. Ardo Boubou Bâ, President of Alliance Nationale du Secteur Privé de la Santé Senegal/ASPS (centre) at the launch of the West African Private Healthcare Federation (WAPHF)

commercial companies, non-profit organizations, social enterprises as well as an informal health sector of healers, midwives, and individual medicine sellers who are essential in providing care and in functionality cover all of the elements along the health value chain, including provision, financing, manufacturing, distribution and retail.

‘Of total health expenditure of $16.7 billion in 2005, roughly 60 percent—predominantly out-ofpocket payments by individuals—was financed by private parties, and about 50 percent was captured by

private providers’ (NHA Report) A huge gap in healthcare delivery is filled by the private sector, catering for a large proportion of medical needs for the rural populations that are unable to access government facilities, to providing a higher quality service, or services such as advanced medical equipment and procedures that may otherwise not be available.

This not only reduces the strain on the public sector to serve the needs of the increasing population, but also leads to improved and efficient health outcomes across the region.

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A F R I C A H E A LT H B U S I N E S S S Y M P O S I U M ( A H B S )

L to R: Hon Minister of Health, Zimbabwe Dr Parirenyatwa , Hon Minister of Health South Africa Dr Aaron Motsoaledi and Dr Amit N. Thakker, Chair Africa Health Business at TICAD VI engage to promote Southern Africa collaboration for health

It is critical for the public sector to harness on the entrepreneurial talents of the private sector in order to improve access to health care. The importance of the role that the private sector plays is also being gradually accepted by governments and development finance institutions throughout the region.

Investments in the private health sector can lead to long-term, sustainable increases in funding and health infrastructure, and in turn, collaborating with the public sector can help the private sector in capitalizing on funds and support

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from local banks. Institutionalized public private partnerships can prove to be a win-win situation for both the public and private sectors, and also create a ripple effect for wider and far-reaching economic outcomes. ‘When appropriately regulated, private sector enterprises can stimulate higher efficiency and quality standards by competing and complement each other as well as providing competition to, public sector providers.’ The private sector continues to play a pivotal role in improving the health systems in Africa and it is important

G R O W I N G T H E B U S I N E S S O F H E A LT H I N A F R I C A

to strategize on how best to leverage mutual capacities between the private and public sector through investments and partnerships to achieve synergies within the healthcare sector.

4. Strengthening Accessibility and Efficiency in the Supply Chain Management

changing the shape of the competitive and operational environment in which supply chain managers make their strategic and tactical decisions.

5. Disruptive Innovations in Digital Technologies for Health

Disruptive innovations in healthcare have allowed a whole new population As reform continues to force healthcare of consumers at the base of the organizations to find new ways to cut pyramid access to a product or costs and increase effectiveness, service that was historically only many organizations forget about the accessible to consumers from the processes and supplies needed to middle and higher income classes. keep the business moving. Getting a Advances in healthcare have better grip on managing a healthcare enabled the successful treatment and organization’s supply and demand management of many diseases that will increase cost efficiency for the were often fatal just a generation ago. organization while also increasing Yet our healthcare still falls short of the quality of patient care. its potential and faces costs that are “The supply chain is the second unsustainable and unaffordable. largest and fastest growing expense The two dominant business models for healthcare providers; with only in health care—those of general labor costing most providers more”. hospitals and physician practices— Priorities are shifting as the healthcare are solution shops that emerged in supply chain becomes more complex, an era when nearly all medical care with a rapidly evolving channel and relied on the intuition of highly skilled distribution. Ongoing macroeconomic professionals. But over time, these and regulatory events are constantly institutions have subsumed under

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A F R I C A H E A LT H B U S I N E S S S Y M P O S I U M ( A H B S )

their organizational umbrellas many activities that are perhaps better suited to businesses based on value-adding processes or user-network models.

Established and upcoming disruptive technological models in healthcare attempt to deliver value propositions that are distinct from those of traditional hospitals and physician practices where there is direct medical professionalpatient contact. Because these disruptive businesses focus on specific, rules-based portions of health care, they can deliver care at a lower cost and with higher quality due to the predictable variation of these processes.

This type of health service delivery can be transferred from specialists to generalists, from generalists to nurses and other physician extenders, and ultimately to patients themselves.

There is need to have diagnostic and therapeutic technologies that allow nurse practitioners to treat illnesses that often requires specialists to treat. Disruptive innovations both small and large could ensure that health care delivery is inexpensive, un-convoluted and more satisfying

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to consumers. The healthcare industry needs to desperately open doors to market forces and not shudder at the thought of it.

The question remains: Are these technologies sufficient to narrow the gap for accessing healthcare in Africa?

Ministries of Health, opinion leaders and captains of the healthcare industry will converge at this symposium to chart a road map for the much needed stronger health sector in Africa.

As a testimony to the impact AHBS is envisioned to have in improving healthcare access in Africa, Mr. Roelof Assies, Head of Healthcare at Philips states, “Philips Healthcare is keen to be part of the movement towards a unified Africa Healthcare Federation.

We see ourselves as true healthcare partners focused on improving peoples lives through timely innovations.

As a world leader in healthcare, Philips integrates technologies and designs into people-centric solutions.”

Similarly, several leading corporates within Africa have joined in this significant effort to re-instate their role in the progress of the continent.

G R O W I N G T H E B U S I N E S S O F H E A LT H I N A F R I C A

Dr. Amit N. Thakker, Chairman of Africa Health Business officially invites Dr. Cleopa Mailu, Cabinet Secretary of Health, Kenya to be the chief guest at the Africa Health Business Symposium

Safaricom, a leading African mobile technology company, headquartered in Kenya has partnered with AHBS to showcase mobile technology solutions that will positively impact health outcomes on the continent.

This October, Captains of the Health Industry will come together to in Nairobi to witness a historic moment in Africa that will unify all the stakeholders.

This will be a significant factor that will influence the health outcomes of the continent. The aim of the Africa Healthcare Business Symposium is to provide this platform for intra-regional

discussion so as to further strengthen the roles played by both public and private health sectors with support from development partners to promote an effective PPP dialogue within countries. The AHBS 2016 will play a pivotal role in the beginning of a momentous change by unifying African countries under a single umbrella – the Africa Healthcare Federation towards overcoming challenges and achieving mutual far-reaching outcomes.

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Access and emp

how free WiFi is transform Written by Jennifer Johnson Produced by James Pepper

powerment:

ming South Africa

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PROJECT ISIZWE

The web is an unprecedented equaliser, permitting all users a similar degree of access to information and resources. With personal and economic development at stake, countries worldwide are clamouring to connect

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n 2016, there are still just a handful of services which are deemed crucial to a thriving community — though running water, housing and electricity are invariably among them. However, with the advent of the internet, our idea of what constitutes an ‘essential’ utility has had to expand.

Deloitte research has shown that productivity in developing countries could be enhanced by as much as 25 percent with the expansion of WiFi access. For countries like South Africa, where 75 percent of citizens can’t easily or affordably get online, it is not yet possible to compete with industrialised, knowledgebased economies. Project Isizwe,

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a not-for-profit organisation based in the city of Tshwane, is currently working with government bodies across South Africa to bring free public WiFi to the country.

“We all understand the value of Internet connectivity,” Zahir Khan, the CEO of Project Isizwe, explains, “especially in terms of educational benefits, improved healthcare services, better opportunities for economic development — and, of course, social cohesion. From that perspective it’s critical to connect the country sooner rather than later.”

In 2013, a bid to connect every citizen was launched across the city of Tshwane. To date, it is Project Isizwe’s largest deployment effort,

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with 850 Free Internet Zones (FIZs) installed in the local area and almost two million unique users accessing the web since November of 2013. By 2018, Tshwane will have WiFi within walking distance of every citizen.

Project sponsors hand-select the hotspot locations based on their perceived value for the surrounding community. It is this kind of thinking which led to the installation of 213 Internet access points outside of schools in Tshwane.

“The city has funded the provision of public access WiFi on their infrastructure outside of these schools,” Khan says. “This ensures that every learner, educator and community member in and around the schools is connected”.

Rural environments in South Africa also stand to benefit from the efforts

of Project Isizwe, though installation in these locations is admittedly more of a challenge. The large majority of financial backing for WiFi installation comes from a locality’s government and public sector bodies. In more remote regions, state revenue is limited, thus it is more difficult to get these communities online. Ultimately, Project Isizwe hopes to have an Internet access point within five kilometres of every rural citizen.

“Funding has been the biggest barrier for expansion across the entire country,” Khan says. “In five different provinces — Limpopo Province, KwaZulu-Natal, Eastern Cape, Western Cape, and Gauteng — the biggest barrier to expansion of the free Wi-Fi offering is the availability of funding.”

Project Isizwe’s not-for-profit

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PROJECT ISIZWE

Zahir Khan Zahir has extensive experience in the telecommunications sector holding various positions at South African based organisations and seeing the rapid evolution and transformation within this region. His notable achievements include successfully driving business development, product development, project management and finance. With 17 years of telecommunications experience coming at the most significant growth periods in the industry, he is well positioned to lead in the wave of connecting an unconnected Africa.

His core operations and project skills are complemented by his knowledge of network architecture and solutions with his initial experience in the finance field, ideally positioning him as a the Chief Operating Officer at Project Isizwe, spearheading the delivery of Free WiFi for South Africa and with ambitions to deliver the same achievments across the continent.

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status has enabled it to reduce the cost of installing telecoms infrastructure by what Khan describes as a “significant” margin. With the help of its partners, the project operates exclusively under costrecovery: it doesn’t charge users for its service and the large-scale financial benefits of WiFi access for South Africa will not be immediately evident.

“We are essentially three times more affordable than traditional deployments of network companies,” Khan says. “We have been fortunate enough to have great OEM and Infrastructure partners that assist us in these reductions of price as they too firmly believe that bridging the digital divide will ultimately form a stronger and more active economy for South Africa.”

Research by the World Bank has shown that a 10 percent increase in what is called ‘broadband penetration’, the amount of the Internet access market that has been captured by high-speed broadband, will result in a 1.3 percent increase in a country’s GDP. “The [financial] sustainability of Government funded public space free WiFi comes out of the long-term benefit of enabling Internet access for citizens today,” Khan says.

Historically, access to an affordable mobile device — be it a smartphone, tablet or laptop — was also a barrier to Internet access in South Africa. Khan notes that, in recent years, as the cost of these items has fallen, they have made their way into the

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PROJECT ISIZWE

“The public hotspots become a place to bridge the digital divide, where regardless of personal circumstance or background, everyone has access to the same internet” WestconGroup is a distributor of a wide range of indoor and outdoor Ruckus Wireless “Smart Wi-Fi” products.

Andries Janse Van Rensburg +27118489012 Andries.JanseVanRensburg@westcon.com www.westcon.com

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hands of people all over the country.

Project Isizwe has deployed in rural environments, places as remote as the mountain village of Tshedza in Limpopo province,” he explains, “even there you’ve got people with WiFi-enabled devices who can utilise and connect to the network. Devices are not the issue any longer.”

As impediments to Internet access and availability are dissolved across South Africa, people are finding creative ways to reach out into their newly-connected world. Khan cites the story of Martin Nyokolodi, a young man in Tshwane who has launched his own Internet radio station, among his favourites. Not only does Nyokolodi utilise the City’s ‘TshWi-Fi’ service to broadcast his programme, he also takes Skype calls from listeners and maintains the station’s social media presence on the network.

The benefits of connectivity have also been extended to the healthcare and hospitality sectors. Restaurant owners in proximity to a WiFi hotspot have been setting up shelters within

signal range so that customers can access the web. Khan reports that these makeshift ‘Internet cafes’ have increased restaurant profits by as much as 80 percent. Equally, the Internet has helped to streamline the process of care and diagnosis in South Africa’s clinics and medical facilities.

In its National Development Plan 2030, the government of South Africa states that it wants universally available Internet across the country in 14 years’ time.

“There’s a lot for us to do,” Khan admits.

However, Project Isizwe, and its CEO, realise the transformative impacts that Internet access can have over lives and economies — and they will go forward knowing just how tremendous the return on public space free WiFi investment will be.

“The public hotspots become a place to bridge the digital divide, where regardless of personal circumstance or background, everyone has access to the same internet,” Khan says.

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Making moves in Africa’s mining industry Written by Wedaeli Chibelushi Produced by Charlotte Clarke

BARLOWORLD EQUIPMENT

We speak to Daisy Kgosi, Head of Procurement at Barloworld Equipment, about procurement, the movement of mining and construction tools, and how the two areas combine

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frica is renowned for its burgeoning mining sector. Mining processes and big gems snare media attention, but there is less public focus on the movement of crucial equipment. How much do you know about the companies that transport essential mining and construction equipment in and outside of Africa? Daisy Kgosi, Head of Procurement at Barloworld Equipment shares a detailed insight into the supply chain aspect of transporting this equipment.

Barloworld Equipment is the sole dealer for Cat earthmoving machines and other mining and constructing equipment in several countries.

It operates in Angola, Botswana, Lesotho, Malawi, Mozambique, Namibia, South Africa, Swaziland, Zambia and the Democratic Republic of Congo’s Katanga province. The company has existed for over 100 years and is supported by 62 billion rand firm Barloworld Limited.

Team leader As Head of Procurement, Kgosi manages the procurement of indirect goods and services. She tells us about how she got this role. “I started my career in the automotive industry in a supply chain training environment,” Kgosi says. “After, I moved to management consulting, where I was exposed to underground mining supply

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chains. My role evolved from just management consultant into strategic sourcing specialist for underground mining equipment. Through this experience, I was then recruited into Barloworld Equipment.” Kgosi was a Strategic Sourcing Manager before landing her current role.

Kgosi leads one of two supply chain departments. “We’ve got two supply chain departments: we have a supply chain related to the distribution of Cat equipment. This does not fall within my responsibility. My role is more to do with all categories of goods

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and services that are supporting the organisations’ processes,” Kgosi explains. Kgosi’s supply chain enables business to support the customers, ensuring that Barloworld is able to deliver the services required. It covers facilities and transportation of parts to customers and the sourcing of third party contractors.

Well-versed in procurement, Kgosi describes wider industry trends. For example, the supply chain market is simplifying buying technology. “You have easy access to your catalogue; you can actually

S U P P LY C H A I N

log on to your ERP system and have live information in terms of what your approved supplier base is able to offer you as a business. Especially in a changing market environment, that is one things that we are struggling with.”

Keen perception Barloworld Equipment keeps up with the industry through innovative projects like Vision 2020. “Vision 2020 is about inspiring a world of difference as an organisation and creating shared value that makes a positive difference for all our stakeholders.

It does this by building a world class business generating superior shareholder return,” Kgosi explains.

“From a procurement perspective, our vision is to create a procurement function which is supported by high performance procurement capabilities. We do this to ensure that we add value to the wider business and also to ensure recognisable impact on our company’s bottom line. That’s how we align with our corporate strategy.”

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Augustino General Construction and Labour Hire Augustino Construction and a Labour hire is a company that was founded on the 23rd August 2008.We specialise in metal Fabrication and Mechanical Engineering. We have been conducting Dragline shutdowns from 2011. We have grown from strength to strength with initially a team comprising of 60 employees to our current level of 640 employees.

Our mission is to deliver the best quality, safe and affordable service to our clients at all times. We strive to be the unquestionable dragline shutdown team of choice on the market.

We also empower our staff through numerous training programmes and are involved in various community development projects.

Contact: Address: 18 Sunflower Street Pineridge Witbank 1039 Tel: 082 365 2184 | Fax: 013 6927233 Email: augustinoconstruction@yahoo.com www.augustinoconstruction.com

S U P P LY C H A I N

5,000 Building bonds Barloworld Equipment doesn’t stand alone; it works closely with likeminded suppliers. “We have regular engagements with all our service providers and to get to a situation where it’s a win-win relationship,” Kgosi states. To Barloworld Equipment, suppliers are invaluable partners. It’s not in the company’s interests to drive its suppliers’ prices down and risk running them out of business. Rather, the firm makes the effort to thoroughly understand its suppliers and in turn, give them the opportunity to understand Barloworld Equipment. Kgosi says: “In terms of innovation we heavily rely on our suppliers to say ‘okay’. For example, there is a new innovation that is available in the market and we believe it can create savings within

The total number of staff working at Barloworld Equipment

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BARLOWORLD EQUIPMENT

Cape Town | Tel: +27218528250 | Tel: +27119740932 | www.sllogistics.co.za SL Transport is an efficient Overnight Service from Cape Town and Johannesburg to the West Coast Mining Industry. At present we are the leading Overnight Transport Company on this route and offer the most reputable and professional services throughout the country. Our Emphasis is on delivering the freight entrusted to us on-time and safely.

“VISION 2020 IS ABOUT INSPIRING A WORLD OF DIFFERENCE AS AN ORGANISATION AND CREATING SHARED VALUE THAT MAKES A POSITIVE DIFFERENCE FOR ALL OUR STAKEHOLDERS” 60

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our customers’ businesses. These are the type of suppliers we look for and maintain relationships with.”

However, not just any company can be a Barloworld Equipment supplier. A supplier must align with the company’s core values. “It’s a little bit difficult to work with somebody that doesn’t fully align with your values,” Kgosi affirms. Barloworld Equipment also looks for suppliers that are progressive in their use of technology. They also

do a lot of business with small to medium enterprises (SMEs), because they believe that not only do SMEs have a reduced turnaround time, they have a large impact on Barloworld Equipment’s economy. Kgosi adds, “you get to work directly with the CEO or the owner of the business as opposed to bigger corporations.”

Barloworld Equipment seeks out suppliers that are interested in the economic transformation of Africa.

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BARLOWORLD EQUIPMENT

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Looking ahead Along with acquiring and maintaining relationships with suppliers, Barloworld Equipment has several other plans for the future. “We plan to step up our sustainability efforts. We will ensure that we get the right skills and capabilities in-house and also develop a governance framework that will ensure sustainability in the long term. I think a combination of the right skills, the right governance framework and the right technology will ensure sustainability,” Kgosi says.

The organisation also wants to enhance its current way of doing business. We want to ensure efficiencies, visibility and transparency of spend. “We are currently busy with our procurement transformation Barloworld programme; part of our overall business Equipment’s annual revenue transformation,” Kgosi reveals. Barloworld hasn’t started this programme yet, but Kgosi tells us it’s in the pipeline. “It’s taken us longer than we expected, but it will transform the way we do procurement because we have done an overall assessment of all our activities and we have identified a lot of opportunities where we can create value and add value to the entire business. That’s one very exciting project we’re working on”.

$2

billion

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SUSTAINING STEEL Written by Nye Longman Produced by Richard Deane

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EGYPTIAN STEEL

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LEVERAGING SIGNIFICANT INVESTMENT AND NATIONAL DEMAND, EGYPTIAN STEEL IS MAKING A NAME FOR ITSELF AS AN EFFICIENT, THOUGHT-LEADING MANUFACTURER AT HOME AND ABROAD

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tepping into the steel industry in 2010, propelled by over $2 billion of investment, Egyptian Steel is growing to become a leading diversified manufacturer and stalwart of the recovering Egyptian economy. Backing up substantial capex with robust social, environmental and operational programmes, the company is looking forward to years of sustained growth and success. Since we spoke to CEO Ahmed Abou Hashima in the July 2015 issue, the company has undergone a number of structural changes and is now in the process of diversifying its offering to the domestic and international market.

Abou Hashima is proud of how far his company has come – and is optimistic about its place in developing the country. He says: “Steel is crucial for

the economy. We have a shortage of 8 million housing units and infrastructure.

The whole population lives on only 7 percent of the land. In order to develop Egypt, steel is vital for at least several decades. It’s a strategic industry that employs thousands of people.”

Operational development Operations are shared across a number of subsidiaries which consist of Egyptian Steel for Building Materials, National Port Said Steel (NPSS), and IIC for Steel Plants Management.

Together, these divisions enable the company to provide a range of steel production capabilities to the market – supported by a number of technological innovations.

“When all four plants of Egyptian Steel are at full capacity we will be able to acquire a 20-25 percent

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market share in Egypt,” says Abou Hashima. “We’re also expanding into the cement industry with a production capacity of 2 million tons per year, and going into IPO is in our plan, although there’s no set time for it yet.

“We have already taken our first step into the cement industry by establishing the sister company Egyptian Cement, and in the future, after mainly operating in steel and cement we might look into diversifying into other building materials such as wood, ceramic, and glass.

Our vision is to make the group a onestop shop for all building materials.”

By the end of 2017, all of Egyptian Steel’s plants will become operational and the company will have an estimated workforce of 6,000 people. “With the opening of the Beni Suief plant we’re also opening a vocational development centre for training steel plant workers in order to improve their skills and performance,” Abou Hashima adds.

But the centre is not limited to just people working for Egyptian Steel: “It’s open for free to anyone who wants to learn,” he says, “It helps us raise

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the calibre of our workers, and at the same time is part of our role to give back to society, and enable people to have an opportunity to improve their skills to be able to compete in today’s workforce market.”

While Egyptian Steel is backed up by significant investment, the company has had to face up to the industry-wide challenge of sourcing enough energy for production. “The government has made an enormous effort to improve the power grid,” Abou Hashima says.

“There have been new power stations launched, as well as mega projects with companies like Siemens to generate power, and the outstanding natural gas field discovered by Eni, which will have a great impact in the future.”

“The situation is definitely better, but we have started using new energy-saving technology which will enable us to avoid any problems in both the long and short run.”

Sustainable steel Embedded within Egyptian Steel’s business model is the imperative to operate as responsibly as possible, a

CONSTRUCTION

AHMED ABOU HASHIMA CEO

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EMB BUSI OPER

BEDDED WITHIN EGYPTIAN STEEL’S INESS MODEL IS THE IMPERATIVE TO RATE AS RESPONSIBLY AS POSSIBLE

EGYPTIAN STEEL

philosophy that it applies holistically to its workers, the environment and the Egyptian people.

At a technical level, the company has made massive strides in energy saving through use of more efficient technology. Combined, the eco-friendly technology the company is using saves almost 60 percent of the energy required and saves as much as 30 percent of emissions – innovations that have added an extra competitive edge. Egyptian Steel also recycles 100 percent of its steel scrap.

This technology is the first of its kind in the Middle East and Africa, and only the third instance in the world. The other two steel plants that use this technology - one in Arizona and the other in Greece - produce 250,000 tons/year, while Egyptian Steel’s Beni Sueif and Al Ain Al Sokhna plants each have a production capacity of 830,000 tons/year, making Egyptian Steel the biggest manufacturer of green steel globally.

Abou Hashima adds: “I created a concept that I like to call ‘socially responsible capitalism’ which emphasises that the civil society has rights that should be fulfilled - it’s our duty to improve people’s lives and to lessen their suffering as much as we can.”

And the company is continuing to achieve this social mission. In 2014 Egyptian Steel scrapped its advertising agenda in order to refit 40 of the poorest villages in the country with basic amenities. Since then it has also sponsored a large number of Egyptian

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WHEN ALL FOUR PLANTS OF EGYPTIAN STEEL ARE AT FULL CAPACITY WE WILL BE ABLE TO ACQUIRE A 20-25 PERCENT MARKET SHARE IN EGYPT – CEO Ahmed Abou Hashima

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athletes, and the Paralympic team.

What is clear from its conscious social work is a desire to share the success of the company in order to raise the standing of as many people in the county as possible.

Abou Hashima adds: “It’s very flattering that our CSR efforts got recognition on a local and on an international level. But what actually keeps me motivated is the happiness I saw on the villagers faces when they moved into their revamped homes.”

The company is also currently working to obtain ISO 9001 (Quality Management Systems), IS0 14001 (Environmental Management Systems) and OHSAS 18001 (Occupational Health Safety Assessment Standard).

Having built on an already strong foundation of investment and national demand for its products and services, Egyptian Steel is set to play a major role in developing the country’s economy and skills base for many years to come

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