African Business Review - August 2014

www.africanbusinessreview.co.za

August 2014

TOP 10

technology

Brands

finance Delivering corporate value

Metorex

Kinsenda Mine Project Launches Multi-Million Dollar Investment Plan

Building digital solutions

Q&A:

Travelstart’s Maija de Rijk-Uys

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.

Co n t r i b u to r s

Daniel Marcus With his first business launched when he was 19 years old, Daniel Marcus is a serial entrepreneur and co-founder of Magnetic, a cloud-based small business management tool that streamlines the day-to-day administrative functions needed to maintain steady growth in a small business. Additionally, Daniel also manages and co-own Living Your Brand, one of South Africa’s leading events and conference agencies, which counts Bentley SA, FNB Wealth, Nedbank Capital, Sanlam Investment Management, Vodacom and Standard Bank among its client list.

Steve Jones Husband, father, brother and full time consumer – Steve’s experience in marketing spans almost 20 years across every discipline – Agency MD, Client, Media Owner, Retail Consultant, Product Design and Manufacturing, Digital Strategist, Conference Speaker and Trend Hunter.

Nick Wonfor Nick Wonfor, Country Manager, Sub Saharan Africa at CommVault South Africa talks about the changing role of the leaders of information technology within a business.

e ditor ’ s comm e nt

Making a mark in the technology landscape W h e n i t c om e s to advances in technology

African countries are often not the first that jump to mind for innovation, more likely are places such as Silcon Valley in the States, Japan, China and even the UK. However, this thought process is gradually changing as more and more indigenous solutions make their mark on the continent’s tech landscape and around the world.

Young entrepreneur Daniel Marcus is one such innovator whose own cloud-based business solution company Magnetic has already surprised the naysayers.

Marcus has penned a special opinion piece for African Business Review which highlights some of the myriad companies that are breaking technology moulds.

Technology, in fact, plays something of a central theme to this month’s offering which also discusses why businesses must make themselves omnipresent through the many platforms available to them if they are to meet demands of customers.

Also Nick Wonfor, of CommVault South Africa, explains why the changing role of Chief Information Officers means that they are increasingly playing a major role in adding value to their companies.

Achieving a competitive advantage through the use of technology is also true of online holiday booking agency Travelstart, whose Head of International Markets is the subject of our monthly series ‘Who’s The Boss?’

Sheree Hanna Editor sheree.hanna@wdmgroup.com 3

Co n t e n t s

FEATURES

Technology plays a central role this month focussing on why businesses must make themselves omnipresent through a multitude of platforms if they are to meet customer demands

30 Finance Nick Wonfor explains why Chief Information Officers must deliver corporate value with data

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Top 10 Brands

Q&A: Boss of the Month Maija de Rijk-Uys of Travelstart takes us on a Voyage of Discovery

16 Marketing South African Retailers can’t afford to fall behind on the Omni-channel Revolution

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Technology

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Cape Town-based serial entreprenuer Daniel Marcus reveals why there is so much talent in the continent 5

By now, we’ve all played with clouds. And now you want a real one, the kind you can run a business with. That’s when you come to BMC. /URÀSO˴WAREÀBUILDSÀANDÀMANAGESÀCLOUDS — ˱EXIBLE À OPEN À DESIGNEDÀ TOÀ CARRYÀ OFÀaYOURÀ By now, we’ve allANDÀ played with clouds.

AndTHEÀ nowWEIGHTÀ you want real BUSINESS ÀIt simple, Untilwith. you That’s try it without us. one, the kindseems you can run areally. business when you come to BMC. /URÀSO˴WAREÀBUILDSÀANDÀMANAGESÀCLOUDS — ˱EXIBLE À OPEN À ANDÀ DESIGNEDÀ TOÀ CARRYÀ THEÀ WEIGHTÀ OFÀ YOURÀ BUSINESS ÀIt seems simple, really. Until you try it without us.

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Co n t e n t s

76 Kirloskar

90

Guinness Ghana Breweries

48 Metorex

Company Profiles 106

Mining

Heineken in Ethiopia

128 Makro

48 Metorex

146 PRASA

76 Kirloskar Oil Engines Ltd

Food 90 Guinness Ghana Breweries 106 Heineken in Ethiopia 128 Makro

Supply Chain 146 PRASA 7

Q & A : W H O ’ S T HE B O SS

Travelstart’s Maija de Rijk-Uys’ career takes her on a Voyage of Discovery The Head of International Markets for South Africa’s largest online booking agency explains why planning and spontaneity are a good mix for both work and vacations E d i t e d b y: s h e r ee h a n n a

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July 2014

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Q & A : W H O ’ S T HE B O SS ABR: Where were you born?

MDR: I am Maija, a short, curly red(ish) head, born and bred in Cape Town, South Africa ABR: Where were you educated and what qualifications do you have?

MDR: School education in Cape Town – attended the International German School (my mother is German) where I also completed my South African, as well as German, school leaving certificate.

I studied at the University of Stellenbosch where I graduated with an Honors in B.Com (Financial Accounting). Furthermore, I completed my B.Compt Honours (Certified Theory in Accounting) with the University of South Africa.

I qualified as a Chartered Accountant with the Institute of Chartered Accountants of Scotland (articled with PricewaterhouseCoopers in London).

ABR: Tell us about your career and how you got to your current position?

MDR: I come from the traditional Big Four background where I completed my CA articles and continued with the firm in their Advisory division.

I ended up staying a total of five years and five months after which I joined Travelstart as the International Business Development Manager. I now head up the International Markets for Travelstart.

ABR: How did you get involved in the travel business?

MDR: By joining Travelstart. I love travel: the industry as well as the “action” of travel (work and personal).

ABR: Who in your career has been your biggest influence?

MDR: Oh wow, I don’t have an exciting answer here. Several people have influenced me. Now I am going to sound really clichéd, several people:

“I come from the traditional Big Four background where I completed my CA articles and continued with the firm in their Advisory division” 10

August 2014

M aija d e R ijk - U ys

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July 2014

Q & A : W H O ’ S T HE B O SS

M aija d e R ijk - U ys

“We are expanding into emerging markets (never a dull moment), the work travel aspect, the dynamic nature of the travel industry, ecommerce and the people I work with” most notable are my husband, a few people I have worked with in the past and a few close friends.

ABR: What do you love most about your job?

MDR: A good few things: the fact that we are expanding into emerging markets (never a dull moment), the work travel aspect, the dynamic nature of the travel industry, ecommerce and the people I work with.

ABR: What was the best piece of advice you ever received?

MDR: When something that seems bad at the time happens, to think “will it matter in a year?”

ABR: What was the worst?

MDR: Not sure I have received bad advice, at least I can’t think of anything obvious now. I usually consider several

ABR: What motivates you?

MDR: Getting a team to work together towards a common goal.

Seeing results.

ABR: What do you consider are the main ingredients for business success?

MDR: Discipline, transparency, persistence, people and integrity.

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Q & A : W H O ’ S T HE B O SS

“Use review sites to ensure that where you want to go and stay is as good as you think. Set up a rough travel plan but leave some time to be spontaneous. Be open to exploring” pieces of advice and evaluate them against each other. If something was really bad I would hope I discarded it.

ABR: What was the biggest mistake you ever made?

MDR: Not listening to my gut.

ABR: What do you do in your free time?

MDR: A lot! Spend time with my family, run (with hubby, baby, dog and all), spend a lot of time outdoors hiking, on beach, exploring new places, a lot of weekends away in the countryside, international travel, lots of wine drinking!

ABR: What is your favorite place in world to visit and why?

MDR: Generally I love visiting the Far East: Bali, Malaysia, Vietnam and Thailand. I love the culture, the food, the weather, the vibe and the people.

ABR: What advice would you give to young entrepreneurs?

MDR: Good question, seeing I am not an entrepreneur myself.

Probably something along the lines of persevere, believe in yourself, ensure you get the right support and advice, and also funding. Never lose sight of what you want to do.

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August 2014

ABR: As someone who works within the travel industry, what are your top three tips for ensuring your vacation is exactly what you want it to be?

MDR: Well, first you’ve got to know what you want, then start planning.

Use review sites to ensure that where you want to go and stay is as good as you think. Set up a rough travel plan but leave some time to be to be spontaneous. Be open to exploring.

M aija d e R ijk - U ys

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Marketing

South African Retailers can’t afford to fall behind on the Omnichannel Revolution Steve Jones, Fontera Digital Works’ Head of Marketing and User Experience, discusses why brands must shape up to meet demand from the tech-savvy consumer e d i t e d b y: S h e r ee H a n n a

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July 2014

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M AR K E T ING In order to succeed in the increasingly competitive eCommerce environment, brands need to ensure that they have effectively adopted all components of the interactive shopping journey.

They must consider both online and in-store, how to deliver consistently across multiple platforms and communication channels, otherwise known as the omni-channel experience, which is fast becoming an industry standard.

In light of the already saturated environment, retailers need to adopt synchronised customer care, cross channel inventory, a definitive pricematching policy, flexible return process, variable fulfilment options and multiple payment methods.

These are not necessarily industrybased innovations and are instead the demands of the increasingly experienced global shopper, who recognises that they should have access to these “fully functional” options at their fingertips.

The consumer of today expects to be provided with integrated retail service across multiple channels, which include online to home delivery, ordering and purchasing online for 18

August 2014

Fontera designed and developed the Edgars Red Square website in-store collection, ordering and paying online and then collecting in-store, and buying in-store for delivery at home.

Transforming services As a result, the omni-channel retail purchasing approach has become a crucial part of online customer retail service.

In South Africa the retail market is undergoing a significant transformation as industry players realise that implementing online

S outh A frican R e tail e rs

Red Square Website and Mobisite by fontera digital works

shopping platforms to keep up with consumer needs will increase their competitive edge.

The merging of digital and physical selling channels into a single customer experience is essential for businesses to maintain their competitive advantage, because as omni-channel technology evolves, so do customers’ needs, behaviours, expectations and their tolerance for ‘below average’ online shopping sites.

The way physical storefront businesses used to dictate to the

Fontera Digital Works, ecommerce website developers from Cape Town, South Africa, designed and developed the Edgars Red Square website using the Magento eCommerce platform and connected directly to their existing IT infrastructure via a custom built module.

Core requirements included real time integration into Edcon’s primary systems for Inventory Management, Delivery, Credit Card, Thank-You Card switching and Customer Data Management Systems. Fontera also leveraged it’s knowledge and experience of customised third-party Magento modules and plugins to enhance the time to delivery and lower the overall cost of implementation.

Users can seamlessly sign up for an account, order their favourite fragrance and have it delivered to their door anywhere in South Africa.

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M AR K E T ING

“Omni-channel retail requires developing IT systems and processes to support customers that shop both in stores and online from computers and mobile computers, such as smartphones and tablets” customer is long gone. Before the inception of the eCommerce era, opening up a store used to be ‘easy’.

All that would need to be done was to find a decent location, fill the store with stock, market the products/ services and sell to customers who came into the store.

The internet changed this model almost instantaneously as nowadays consumers not only make in-store purchases, but they browse stores’ online sites for products to purchase.

Evolving value chains It is not as easy to manage an online store as it is to manage a physical store as it requires significantly more hard work to run.

Omni-channel retail requires developing IT systems and processes to support customers that shop both in stores and online from computers and mobile computers, such as smartphones and tablets.

The retailer’s value chain needs to 20

August 2014

evolve in order to stay competitive.

Furthermore, physical stores used to compete only with other stores within the catchment area, now platforms operating in the online space have much more international online competition than before.

The rule of thumb in omni-channel use is to deploy the website first and the store second.

There is a tendency to rely on the technology to do all the heavy lifting, when in fact, the store, mobile, eCommerce, blog, emailers, customer care, social media, data mining and marketing platforms are all interconnected. In order to ensure that the consumer’s needs are met these channels all work seamlessly together.

Essential for growth The integration and development of a successful ‘omni-channel experience’ relies much more on the ‘people’ strategy than the online strategy.

Once it is determined why

S outh A frican R e tail e rs

omni-channel deployment is necessary for the business, the correct people who are able to carry out the job can then be determined.

In order to get all these elements working together is a complex task as it takes deep thinking, disruption and evolution across the value chain, vision and passion, investment and commitment to improve the customer experience on a daily basis. The implementation of this system will however help to retain clientele.

Whatever your approach is to starting an online store, one thing is for certain – at a time of unprecedented change, unbelievable technology and armies of people who want and expect more, the implementation of an efficient omni-channel approach is essential for business growth.

Biography Steve Jones Steve’s experience in marketing spans almost 20 years across every discipline - Agency MD, Client, Media Owner, Retail Consultant, e-Commerce developer and Trend Hunter. Steve has settled as Head of Strategy and Marketing at Fontera, Digital Works – and has also recently introduced the first of its kind 360˚ Product photography service into the SA market called Turnpics.

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technology

Building Digital Solutions to meet the Continent’s Challenges Cape Town-based serial entreprenuer Daniel Marcus reveals why there is so much talent in the continent capable of innovating solutions suited to indigenous people E d i t e d b y: S h e r ee H a n n a

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August 2014

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Technology The massive successes enjoyed in Silicon Valley forever dwarf the African tech scene, but despite this there are some truly amazing things happening on the continent, especially in the vibrant tech-hubs found in Kenya, Ghana and South Africa.

I have been an entrepreneur since I was 19, when I started a student event organising agency called Sinsation Promotions.

Starting Sinsation was actually a no-brainer: after working for a friend selling black bags door-to-door for two weeks, I knew then already that I could never work for anyone but myself.

Since then I’ve launched a number of entrepreneurial ventures, some of which have failed and some of which have succeeded.

Today, I manage and co-own Living Your Brand, one of South Africa’s leading events and conference agencies, which counts Bentley SA, FNB Wealth, Nedbank Capital, Sanlam Investment Management, Vodacom and Standard Bank among its client list.

Magnetic appeal You may be wondering how any of this makes any opinion I may have on the African tech-startup scene to be 24

August 2014

of any value, but this is where the second venture I’m involved in comes in.

The second venture I currently co-own and manage is what opened my eyes to the many great tech stories on our continent.

Magnetic is a cloud-based, end-to-end business management solution that helps streamline business and increase efficiency and profits.

While many were sceptical when the idea to launch it first came to mind, the success Magnetic has achieved in a relatively short space of time has

‘Of course, relative to Silicon Valley, we are a small community, but what cannot be denied is that we match our international friends when it comes to passion’

B uilding D igital S olutions

uber-successful innovative start-ups

WooThemes WooThemes was started in 2008 by three Wordpress enthusiasts who met online, from three different countries, South Africa, London and Norway.

It has now grown into an international team of designers, developers and support ninjas catering for a passionate community of hundreds of thousands of users.

From starting out selling a handful of commercial WordPress themes the company, based in Cape Town, now offers a huge catalogue of feature rich themes, and a suite of plugins that extend Word Press experience, and the ambitious team have even more exciting plans lined up for the future. www.woothemes. com/about

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Technology put those nay-sayers to bed.

Many thought that either South African businesses would be too wary to get involved in a cloud-based system or, if not, that instead those businesses would be wary of the connectivity costs they may incur from relying on a cloud-based system for a core business function.

However, the response from the business community allayed all those fears. In two short years, Magnetic has become so successful that Tim Bishop (acknowledged as the ‘father of mobile’ in South Africa) has invested

in our company so that we can take it international.

Opportunities abound The success of the venture has been heart-warming. However, what I’m also incredibly grateful for with Magnetic is how it has opened my eyes to the amazing work being done throughout Africa’s tech scene, as well as the opportunities that are now available.

Of course, relative to Silicon Valley, we are a small community, but what cannot be denied is that we match our international friends when it comes to

uber-successful innovative start-ups

Motribe South African mobile social networking platform Motribe was started in August 2010 by founders Nic Haramlambous and Vincent Maher with the aim of empowering brands to set up mobile web communities.

Motribe is a platform that allows anyone, anywhere to build, manage and generate revenue from their own social mobile website and it grew to 1.5 million users in just 10 months.

In 2012, it was taken over by Mixit, Africa’s largest social network, becoming one of the first start-ups founded, funded and exited in the ‘Silicon Cape’ Motribe twitter page: https://twitter.com/motribe

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August 2014

B uilding D igital S olutions

‘The success of the venture has been heart-warming. However, what I’m also incredibly grateful for with Magnetic is how it has opened my eyes to the amazing work being done throughout Africa’s tech scene, as well as the opportunities that are now available’

Our CTO and cofounder, Vincent Maher being interviewed for a SummitTV feature 27

Technology

‘Ushahidi ‘s SwiftRiver product powers FirstToSee, an app that is being used by several Puget Sound, WA municipal agencies as their crowd sourced emergency support system’

passion. In fact, I’d go so far as to say we are more than a match for them.

Whether it’s here in Cape Town, South Africa, or in Lagos, Nigeria, in Nairobi, Kenya, or even in a tiny village outside of Accra, Ghana, what’s happening is that Africans are 28

August 2014

developing a slew of technologies that address African concerns.

I’m also amazed how these ventures so often mirror the Magnetic story. Whether you’re talking South Africa’s WooThemes and Motribe, or Kenya’s Mpesa and Ushahidi, though

B uilding D igital S olutions

uber-successful innovative start-ups

Crowdmap is a simple mapmaking tool, built on an open API, that allows you and the world to collaboratively map your world

Ushahidi Ushahidi is a global non-profit technology company with its origins in Kenya. Today Ushahidi’s mission is to change the way information flows in the world and empower people to make an impact with open source technologies, cross-sector partnerships, and ground-breaking ventures.

The company is responsible for founding the iHub, a technology hub in Nairobi which has helped build the technology community in East Africa, growing to over 14,000 members, has incubated 150 tech start-ups that have created more than1,000 jobs.

we’re building digital solutions for African challenges, they’re making a mark globally.

If ever there was a living, breathing example of ‘African solutions for African challenges’, it would have to be our tech scene.

It originally grew from a website which was initially developed to map reports of violence in Kenya after the postelection fallout at the beginning of 2008. Ushahidi means testimony. www.ushahidi.com

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FINANCE

Chief Information Officers must deliver corporate value with data The changing role of the leaders of information technology within a business increasingly means they must endeavor to create financial benefit for the company Written by: Nick Wonfor, Country Manager, Sub Saharan Africa at CommVault South Africa 30

August 2014

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FINANCE The role of the Chief Information Officer (CIO) has changed fundamentally over the past decade from taking care of technology to support the business to expecting to play a key role in achieving competitive advantage.

In an era of cloud computing, big data and increasing dominance of mobile devices, the way an organisation interacts with IT is now very different.

Research company Gartner states: “In the past, the CIO’s role was primarily to run the IT organisation.

In the future, it will be to ensure that the enterprise, as a whole, achieves strategic value from the use of technology and information.”

A key component of this new CIO role is the ability to proactively encourage the business to embrace innovation at a time of fundamental technology change that is creating significant upheaval and disruption.

How can an organisation exploit new social network models, ubiquitous broadband and limitless storage? What is the best way of using the plethora of new devices to improve productivity and performance – both within the organisation and through 32

August 2014

collaboration with business partners?

How can a data-driven organisation transparently share data and ensure self-service access for every employee? And, critically, how can innovation and collaboration be achieved without compromising essential compliance requirements?

One thing is clear: the next generation digital business is completely dependent upon and enabled by real time, anywhere access to high quality information.

Organisations cannot achieve innovation and competitive differentiation without IT, however, to understand the true potential and opportunities requires a complete, accurate and end to end view of information and processes throughout the enterprise.

Leading change The CIO is in an excellent position to identify and create value from enterprise wide synergies in these areas. But before any CIO can go to the business with ideas for innovation that will deliver competitive advantage, the underpinning data infrastructure has to be in place and that requires a very different approach.

Analysing key performance indicators is an example of how CIOs will function in the future

‘In the past, the CIO’s role was primarily to run the IT organisation.

In the future, it will be to ensure that the enterprise, as a whole, achieves strategic value from the use of technology and information’ – Research company Gartner

In the past, IT was doing its job if systems were running well across all locations, timely backups were taken and data stored securely on disk.

Gradually this evolved to a centralised strategy where IT exploited more sophisticated and efficient storage to migrate data to central locations and impose greater control.

This is no longer good enough: IT needs to ensure that all end users – and increasingly business partners – can not only access data efficiently but also collaborate with that information in real time.

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FINANCE

Construction workers’ tablets offers real-time access 34

August 2014

C I O s must d e liv e r corporat e valu e

‘IT needs to ensure that all end users – and increasingly business partners – can not only access data efficiently but also collaborate with that information in real time’ From the construction workers requiring real-time access to 3D models on their tablets while on site, to the rescue workers relying upon accurate geographical data when responding to an emergency, fast access to trusted, accurate information is key.

Data in the cloud This fundamental reliance upon real-time, anywhere access to information via a huge diversity of devices, combined with the pressing requirement for innovation, changes the emphasis for the CIO and IT department.

For IT, it is now essential to offload the basics of hardware, software and support and concentrate on the role of exploiting IT to deliver value.

It is therefore important to deploy a data management model that does not demand continuous IT resource.

Organisations that require a

significant number of people – and cost – to maintain and manage the data infrastructure will struggle to make the evolution from supporting day to day business needs towards delivering innovation.

Streamlining the data infrastructure, and reducing the reliance on IT personnel, frees up budget to spend on delivering real business value.

As a result, an increasingly important component of this data management strategy is to seamlessly move corporate information from on-premise into to the cloud and ensure secure access from any location.

Taking this step not only reduces the internal IT cost but also exploits a third party’s dedicated solution to provide the required multiple copies of data, a multitude of failover switches and multiple connections to the Internet.

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FINANCE Tough decisions A cloud model also delivers that anytime, anywhere access to data users now require. However, this is not a simple step for organisations.

It is certainly not practical to move all corporate data into the cloud at once. Organisations need to take a phased approach to data migration – and consider the impact on end users.

While cloud based data makes it far easier to deploy new applications to remote workers using a multitude of devices, it is essential to make this move seamless to users.

To avoiding incurring significant support requirements and undermining the value of the third party model, the business must not deploy any end-user technology that requires management. As Gartner says: “At every replacement and upgrade decision, [the CIO should] assert preferences that will demand less management and less intervention.”

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August 2014

However, many organisations are completely unable to make this move due to the inflexibility of the current data management infrastructure which cannot support both on-premise and cloud-based data in tandem.

Indeed, one of the toughest issues facing many CIOs is to admit the need to change strategy and technology – often long before a technology refresh would typically be scheduled.

The reality is that the second wave of digital, combined with demands for IT to deliver measurable corporate value, mean that some technology decisions taken even within the last 24 months no longer look good.

The onus is on the CIO to face

‘Organisation a phased app migration – an impact on

C I O s must d e liv e r corporat e valu e

up to the fast evolving business demands and technology environment and admit the need to make changes.

New challenges Ten years ago the CIO was reactive, responding to demands from the business to determine on-going strategy.

Today that role has changed fundamentally: successful CIOs are increasingly adopting a consultative approach, proactively engaging with and educating the business to demonstrate opportunities for competitive differentiation enabled by the digital economy.

ns need to take proach to data nd consider the end users’

 For the CIO, this creates any number of new challenges – from identifying and implementing technologies that can address all the business demands of today and the future, to explaining the value of those technologies to the business and, increasingly, to business partners to encourage the broader use of enterprise data as a competitive asset.

Underpinning this new role is information: the creation and exploitation of information and process assets are vital components of digital enterprise innovation and effectiveness.

To confidently and successfully take new ideas for competitive differentiation to the business, the CIO must first create a holistic view of information and processes across the extended enterprise and ensure the right data infrastructure is in place to deliver that anytime, anywhere information model.

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TOP 10

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Guaranty Trust Banks

Nigeria

Guaranty Trust Bank plc is a foremost Nigerian financial institution with vast business outlays spanning Anglophone/ Francophone, West Africa, East Africa and the United Kingdom.

It presently has an Asset Base of over two Trillion Naira, shareholder funds of over 200 Billion Naira and employs more than 10,000 people.

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Tiger Brands Food Diversified

South Africa

Originally known as Tiger Oats, Tiger Brand’s first product was a breakfast oatmeal brand called Jungle Oats. A product that is still produced by Tiger Brands.

The product was first conceived by a Mr Frankel towards the end of the 19th century and was finally launched in 1925.

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August 2014

B rands

07

08

Dangote

Tusker Beverages

Kenya

East African Breweries Ltd’s flagship brand got its name following the death of George Hurst, a co-founder of Kenya Breweries Ltd, who was killed by an elephant during a hunting expedition in 1922. It is brewed using 100 percent African ingredients that are locally sourced. EABL is East Africa’s leading branded alcohol beverage business.

Consumer, Non-Cyclical

Nigeria

The Dangote Group is one of the most diversified business conglomerates in Africa. It has earned an excellent reputation for business practices and the quality of its products which include: cement, sugar, salt, flour and semolina, pasta, noodles, poly products, logistics and even real estate. The company is owned and run by Africa’s richest man, billionaire Aliko Dangote.

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05 06

Castle Beverages

South Africa

Founded in 1895 as Castle Breweries to serve a growing market of miners and prospectors in and around Johannesburg. It is now known as South African Breweries or informally as SAB. The company is headquartered in Johannesburg, South Africa and is a wholly owned subsidiary of SABMiller. It is the dominant brewing company in South Africa, with a market share of around 89 percent.

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August 2014

Globacom Telecoms Services

Nigeria

Globacom is Africa’s fastest growing telecommunications company. Owned by the Mike Adenuga Group, Globacom is the market leading mobile service provider in Nigeria. It operates in the Republic of Benin and Ghana and it has also acquired licenses to operate in the Ivory Coast. It has a reputation as one of the fastestgrowing mobile service providers in the world.

B rands

03

Shoprite Retail

South Africa

The brand is one of the leaders in South African food retailing and is according to market research the brand of choice of the highest percentage of South African consumers. It started life as a small chain of supermarkets in 1979. It now boasts some 309 stores and across 16 African countries it has a further 71 stores.

04

Pick N Pay Retail

South Africa

Pick n Pay is the quintessential family store focused on the customer. Since 1967 when consumer champion Raymond Ackerman purchased the first few stores, the Ackerman family’s vision has grown and expanded to now encompass stores in South Africa, Namibia, Botswana, Zambia, Mozambique, Mauritius, Swaziland and Lesotho.

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B rands

02

Woolworths Retail

South Africa

Founded in 1931, “Woolies�, as the business is affectionately known by South Africans, is the only retailer of its kind in the country, offering fashion, food, beauty and homeware under its own brand name. The company says it has a unique position by remaining true to its core values.

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01

MTN Telecoms Services

South Africa

MTN South Africa is part of MTN group, a multinational telecommunications provider that connects more than 203.8 million people in 22 countries across Africa and the Middle East.

Launched in South Africa in 1994, and provides voice data and telemetry offerings and solutions to its customers. The company is listed on the Johannesburg Stock Exchange (JSE) and has the largest primary listing on the exchange.

The company enjoys 37 percent

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August 2014

of market share in South Africa and continues to expand its presence and brand across the African continent and now has a firm footing in the Middle East.

MTN’s vision is to be the leading telecommunications provider in emerging markets. It has 25,424 employees who communicate in five official languages and represent 55 nationalities.

In the past five years alone MTN’s capital expenditure has exceeded R130 billion. Group President and CEO, Sifiso Dabengwa, said: “Our key focus areas are improving our market position and enhancing our customer experience by driving innovation and efficiency.”

47

Metorex’s

Multi-Million Dollar Expansion Plan to Increase Copper Production Written by Sheree Hanna Produced by Anthony Munatswa

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The mining company based in South Africa with assets in Zambia and the Democratic Republic of Congo is buoyed up for growth following take-over by Chinabased Jinchuan

Workers at the Chibuluma Mine which produces approximately 19,000 tons of Copper in the form of concentrate 50

August 2014

J

ohannesburg-based mining company Metorex has launched a multi-million dollar investment programme with an ambitious goal of reaching a target of producing 250,000 tonnes of copper a year in 10 years’ time.

Following its takeover by Chinese mining company Jinchuan in 2012, this established midtier mining group, which is a US$400 plus million revenue business with assets in both Zambia and the Democratic Republic of Congo (DRC), is very much on the expansion path.

The company has immediate projects in hand which are set to take the current annual copper production rate of 55,000 tonnes a year to 80,000 tonnes in the next 18 months and then exceed 100,000 tonnes within five years.

These projects are coupled with a strategic plan aimed at creating greater efficiencies within the company’s supply chain which is centred at its South African headquarters.

Mike Benfield, Chief Financial Officer, said: “Our target is that in 10 years’ time we will be producing 250,000 tonnes of copper a year.

“That is a lofty target that we have set ourselves but we believe we will achieve this through a combination of developing the projects and deposits that we have in our current portfolio and by acquisition with the backing of our Chinese parent company, Jinchuan Group International Resources, which is listed on the Hong Kong Stock Exchange.”

M ining

Workers inspecting samples at the Chibuluma Mine

Existing operations Metorex owns two operating mines; Chibuluma in Zambia, which began production in 1955 and currently produces around 18,000 tonnes of copper in concentrate a year, and Ruashi, a copper and cobalt mine in Katanga province in the DRC. Chibuluma was acquired by Metorex in 1997 through a Government privatisation programme and is often referred to as Zambia’s model mine.

The copper concentrate from the mine is sold to Chambishi Copper Smelter in Zambia where it is converted into copper blister and moved into the market.

Benfield said: “It is a mature mine nearing the end of its life and as a consequence is one of very few mines in Zambia which is tax paying. “We have discovered a smaller satellite deposit

The Chibuluma Mine currently extracts ore from an underground operation feeding an efficient well run concentrator

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about a kilometre and a half away from Chibuluma and we are about to open that up so we can effectively extend the life of Chibuluma for another six or seven years.�

Some 400 people are employed at Chibuluma and Metorex is keen to hang onto its operations in Zambia, consequently the company will invest some $24 million on the decline development required to access the recently-discovered ore body. “Extending our operation in Chibuluma will give us more time to continue our exploration efforts in the area. We have an experienced staff compliment, who are performing well and we very much want to keep them within the Group and maintain our operational presence in Zambia.�

Chibuluma Mine

Workers at the Chibuluma Mine

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Chibuluma mine

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Copper and Cobalt The Ruashi mine employs 2,500 people and currently produces 38,000 tonnes of copper cathode and 4,400 tonnes of cobalt a year.

“There are plans to take the copper production up to between 45,000 and 50,000 tonnes a year as we de-bottle neck the process plant,” explained Benfield.

Over and above the two existing operating mines, Metorex has three major projects in the pipeline including its new Kinsenda mine where it has embarked on an investment of $322 million to develop the mine and build a process plant to bring into operation in late 2015.

The Kinsenda Project currently ranks as one of the world’s highest grade copper deposits with

Ore is conveyored for inspection

Key Personnel

Michael Benfield BCom, BAcc, CA(SA)

Chief Financial Officer Mike joined Metorex on June 1, 2012 having previously been the CFO of Bateman Engineering NV since May 2010.

He was previously the CFO of the Mineral Recovery Division of Bateman, a position he held for over two years.

During this period he became very involved in the operations of the Group’s mineral processing plants. He has held senior financial management positions with Ster-Kinekor, Investec Bank and Super Group.

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BRAS SECURITY is a Private, Limited Company dealing in Security in the DRCongo, Zambia and Tanzania.

The Company is Congolese/ Belgium and started it’s first roots in 2002. The staff is composed with multicultural personnel bringing together Zimbabweans, Congolese, Belgians. The guards are recruited according to the official standards and undergo theoretical and practical training by skilled, experienced trainers.

BRAS SECURITY also specializes in the escorting of minerals to South Africa, Dar es Salaam, Mozambique, NamibiĂŤ, Zambia.

BRAS guards are posted in plants, mining sites, residences and any other properties. Several patrols are carried out 24h a day, 7 days a week by our armed security team. www.brassecurity.com

YOUR SAFETY...OUR BUSINESS

supplier profile

Bras Security

Established: Started in 2002 in Lubumbashi, the BRAS Security Services’s House is a brillant result of a equitable collaboration between a Congolese and Belgian partners. We are currently very present in the copper Capital but also in Kolwezi, Likasi, Lonshi, Sampwe, Kasenga and in Zambian territory throughout its railways and roads Escort Service.

Industry: Security Services: • Create, control and supervise an evacuation plan as well as developing the sit emergency procedures.

• Optimise the management of crisis situation in order to minimise their impact on the company’s capital, its industrial activity and its human resources.

• Guarding of real estate, industrial, mining and private sites.

• Railways and road escorts from DRC to Zambia, Chirundu, Victoria Falls, Livingstone, just to Beithbridge (South Africa).

• DOGS Section.

• Alarm quick response (panic button), CCTV, Access Control, Tracking System, Radio Communication.

Management: Ngoy Kazembe - General Manager Website: www.brassecurity.com

M e t o r e x ( P t y ) Lt d

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declared mineral resources of 20.7 million tonnes at a grade of 5.6 percent copper.

Kinsenda is situated within the DRC near the border town of Kasumbalesa and was purchased

by Metorex in the mid-2000s.

At the time it was taken over, it was a flooded mine, previously run by a Japanese Mining consortium and then by the Congolese government, and Metorex ultimately gained control with the intention of opening and mining it.

With the purchase came 400 employees and the challenge of dewatering the mine before any new development could take place.

“We have dewatered the mine to 300 metres below surface and are now in the process of developing a further decline into the western ore body, which is our current focus, but over time we will move into the eastern ore body, the previous operators having mined the central areas” said Benfield.

Employment opportunities Construction work on the project began in April 2013 and it is anticipated copper production will begin in late 2015, with expected production levels in the order of 25,000-26,000 tonnes of copper concentrate a year.

Kinsenda will create further employment for the nearby settlements of Meleke, Twibombele and Kisenda.

The projects’ environmental impact assessment and associated management plans

‘We have dewatered the mine to 300 metres below surface and are now in the process of developing a further decline into the western ore body’

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60 years of experience at your service

Your Logistics Partner Comexas Afrique is your key partner in logistics, warehousing, customs clearing and shipping representation in the Dem. Rep. of Congo.

www.comexas.cd

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were submitted to DRC authorities in 2011 and all approvals required by the DRC Mining Law have been obtained.

Metorex is also planning another $400 million investment in its Musonoi project, which lies a little further northwest near the mining town of Kolwezi.

The project area contains at least two known mineralised zones, one of which known as Dilala East was discovered as a blind, high grade copper and cobalt deposit in 2007.

Following the initial discovery of the high grade mineralised zone, the property has been extensively drilled and has declared a mineral resource at 31.7 million tonnes at a grade of 2.8 percent copper and 0.9 percent cobalt.

supplier profile

‘Kinsenda will create further employment for the nearby settlements of Meleke, Twibombele and Kisenda’

Comexas

Comexas Afrique has been active without interruption in Democratic Republic of Congo since 1953 in the area of logistics, customs clearing and air/road/maritim transport for both import and export. Comexas Afrique is also ship agent for several maritim commissioning.

Key words of Comexas Afrique are : « PROFESSIONNALISM - PRECISION - EFFICIENCY - FLEXIBILITY » Website: www.comexas.cd

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YOUR NEEDS ARE OUR PRIORITY Group SIL is a registered petroleum trading company based in Lubumbashi, DRC and is involved in the importation, transportation, storage and distribution of petroleum products to mines, commercial customers and retail sites.

For enquiries please contact: Mutombo Irung Stephane : +243 81 333 51 52 • stephane.irung@groupsil.cd Kyoni Guy : +243 97 001 17 22 • guy.kyoni@groupsil.cd

mining@nucleussc.co.za Tel: +27 (0) 11 783 3290 Fax: +27 (0) 11 783 1310

Crafting and Managing Intelligent Supply Chain Solutions Road– normal / abnormal • Seafreight • Airfreight – schedule / charter • Rail • Freight Forwarding • Project Management • Procurement • Crating • Full management of pre shipment and export documents • Full cross docking operation: • South Africa - Covered 5,800m2 • Zambia – Covered 1,800m2 • DRC - Covered 2,000m2

M e t o r e x ( P t y ) Lt d

mining

Challenges ahead Benfield said: “It is a very high grade copper cobalt deposit. In December last year we completed the bankable feasibility study and we are going through some further optimisation studies on the back of that.

“This will be an underground mine, but the challenge for us will be accessing the ore body, which currently is estimated to take about four and a half years to get to.

“We are trying to work out a way of getting to it faster so that it will improve the returns and valuation of the mine, ultimately we should be in production in about five years’ time.”

Finally, Metorex’s Lubembe project, which is located near to the Kinsenda mine, is a much larger deposit, but of lower grade ore.

A scoping study completed in early 2012

supplier profile

‘Metorex is also planning another $400 million investment in its Musonoi project, which lies a little further northwest near the mining town of Kolwezi’

Metorex Nucleus

Main text goes hereMining and can be a block of copy - if there desire to Services: Nucleus Logistics provides high levelsis ofno service indent theseeking copy with headings.supply Main text goes here and can be a block to clients world-class chain management solutions. of copy - if there is nointegrates desire to indent the copy with headings.

Essentially, Nucleus key logistical processes, such as transport, project management procurement, If you needwarehousing, to create a new paragraph then justand hit return and a to reduce overall separating rulelogistics appearscosts.. for segregating the paragraphs.

With an in understanding of customs regulations African The text indepth this box aligns from the bottom up.

Adjust theoftext box height states andbut of the mining industry’s requirements, of course, leave the position of logistical the box sooperational that the bottom of the box Nucleus is well placed to add value and accountability to the mining has a y co-ordinate of 742pt. sector across Africa Website: address goes here as the last entry Email: mining@nucleussc.co.za

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M e t o r e x ( P t y ) Lt d

Dilala East was discovered as a blind, high grade copper and cobalt deposit in 2007

“It is a very high grade copper cobalt deposit.

In December last year we completed the bankable feasibility study and we are going through some further optimisation studies on the back of that” – Michael Benfield, CFO

64

August 2014

confirmed the potential to mine and process mixed sulphide and oxide ores. The mineral resource of 93 million tonnes at a grade of 1.9 percent copper will eventually be mined by open pit methods.

“We anticipate this project will cost somewhere between $500 million and $600 million and think that we may start it within the next five years,” said Benfield.

The Chinese factor While the history of Metorex’s two operating mines extends back over many decades, the company itself was founded in 1975 by a consortium including Simon Malone which acquired Rand London Mines and subsequently became known as Metorex.

M ining

The financial crisis impacted the business requiring it to divest of all of its South African assets leaving it focused as a base metal miner in Africa.

Its fortunes have turned around somewhat dramatically following its acquisition by the China state owned entity, Jinchuan Group, which is providing the capital and support for its varied investment projects.

Metorex officially ceased trading on the Johannesburg Stock Exchange in January 2012 and in November 2013, Jinchuan successfully incorporated Metorex into Jinchuan Group International Resources Company Ltd, a Jinchuan subsidiary listed on the Hong Kong Stock Exchange. “From that point onwards Metorex became Jinchuan’s African platform to develop further

Ruashi is a copper and cobalt mine in Katanga province, located within the Democratic Republic of Congo

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Wealth Unearthed When you unearth copper, you help move energy that can change the world.

This is the kind of wealth AEL Mining Services is proud to help you unearth. Advancing, constantly evolving and defining the furture of explosives in the mining industry.

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Hass Lubricants, tough and versatile! ‌.Because what goes in matters

M e t o r e x ( P t y ) Lt d

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Workers keep the generators going 24/7

assets and acquire assets through the Metorex brand that are primarily focused on base metals,” said Benfield.

“Jinchuan Group International has now become our new parent company with a 75 percent holding from the Jinchuan Group and 25 percent held by minorities. So now it has become the spring board to raise the capital and create the platform for Metorex to grow in Africa.”

In China, Jinchuan owns and operates a massive nickel deposit, which has still got a mining life of 50 years’ plus around which a whole integrated city has established itself.

Jinchuan also holds a 51 percent stake in a South African platinum mine in the north west province and a few other assets outside of Africa.

“Jinchuan Group International has now become our new parent company with a 75 percent holding from the Jinchuan Group and 25 percent held by minorities” – Michael Benfield

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SONOREX Providing 40 years of procurement & logistic services to the mining industry in Africa

Contact details: P.O. Box 6793, Roggebaai, 8012, South Africa Tel (+2721) 421 1738 / 425 1020 • Email - info@tradimex.co.za

Turn-key Laboratory Solutions Design • Project management • Installation • Commissioning • Training & facility management • Containerized or built infrastructure • Sampling & Laboratory audits • Proficiency Testing Schemes

www.tramecon.com admin@tramencon.com

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Technical support Since the acquisition, apart from financing of projects, Jinchuan has extended its technical support and advice to Metorex. “I think by and large Jinchuan has left Metorex to manage the African environment, and although we have a few Jinchuan secondees here that are helping to build a bridge between the two companies and cultures we are operating fairly autonomously.� said Benfield.

In order to maximise efficiency and productivity, Metorex is tackling two major hurdles that come with operating in central Africa, a skills shortage and long, logistical supply chain. “The skills shortage in Africa is immense with mines in Africa, depending on the scale of their operation, employing people with the skills from

supplier profile

Women serving food at the Ruashi Mine, Democratic Republic of Congo

Tramecon Metorex

Main text goes here and can be a block of copy - if there is no desire to Tramecon provides Turn-key Laboratory Solutions, including design, indent the copy with headings. Main text goes here and can be a block project management, installation, commissioning, staff training & of copy - if there is no desire to indent the copy with headings. facility management. The facilities can be either containerized or built If you need to create a new paragraph thenexpansions just hit return a infrastructure.

We also assist with facility andand upgrades, separating rule appears for segregating the paragraphs. including change management and technical training. Quality related services include: Sampling andthe Laboratory audits, based on ISO The text in this box aligns from bottom up.

Adjust the text box17025 height and relevant standards.

Method validations of course, butcommodity-linked leave the positionISO of the box so that the bottom of theand box SO implementation. has17025 a y co-ordinate of 742pt.

Website: www.tramecon.com, address goes here aswww.qotho.co.za the last entry

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Energising the Future!

Amalgamated Power Solutions is a leading electrical and mechanical engineering company specialising in providing comprehensive p ower generation solutions to industries in both South Africa and Southern Africa. www.amalgamatedpowersolutions.com

We cover the surface, because the world needs protection.

Design and manufacture of cost effective turnkey plant and equipment, tailor made to meet the vast variety of metal surface treatment requirements and applications.

VJL has successfully supplied state-of-the-art continuous and indexing type process plants for a variety of applications, using our in depth knowledge of electroplating processes.

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M e t o r e x ( P t y ) Lt d

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many other countries,” said Benfield.

“For example we have a small contingent of South Africans, Australians and British citizens working at our mines, although it does vary from mine to mine, but the majority of the work force are local employees.”

Benfield explained that part of Metorex’s strategy was to ensure continuity with its ex-pats, so as not to lose their expertise, through helping them develop their careers at the company’s various locations.

Centralising efforts In a bid to counteract skills and supply chain issues, the company has established a central services operation called Metorex Commercial Services (MCS) at its headquarters in

“The skills shortage in Africa is immense with miners in Africa, depending on the scale of their operation, employing people with the skills from many other countries” – Michael Benfield

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Operations at the Kinsenda mine

“Commodity price is not in our control, however we can control two things, the cost at which we produce a copper unit at and how many units we produce. So at a cost level we have got to get our supply chain right” – Michael Benfield

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Johannesburg.

MCS has begun by bolstering technical skills at an administrative level including its accounts payable function which is controlled and supported from the head office.

It has also sought to centralise its procurement activities leveraging more scale by being the procurement service provider for all of its operations, thus aiming to secure better price points from suppliers and ultimately getting costs per unit down.

“Commodity price is not in our control, however we can control two things, the cost at which we produce a copper unit at and how many units we produce. So at a cost level we have got to get our supply chain right,” explained Benfield.

“We have a well thought-out supply chain management strategy which we are aiming to develop, managed from Johannesburg and then integrated into our various operations.”

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Key Personnel

Staff pumping water from the mines

John Ferreira

BEng (Metallurgy), MBL

Supplies are predominately sourced in South Africa but chemical reagents to extract ore through the copper process come from other parts of the world.

The challenge of connectivity is one that the company is also endeavouring to constantly improve in order to allow good communication across its operations.

“In Africa there are issues with internet and telecommunication connectivity which can be a challenge for us,” said Benfield. “We are looking at standardising our communications from our headquarters in Johannesburg through to our sites in Central Africa.

“We are also looking at Chinese procurement.

The Chinese have an amazing track record for doing things quicker for less and we believe that their quality is constantly improving ensuring that supplies are fit for purpose, reliable and cost effective.”

Chief Executive Officer Previously Executive Chairman of Bateman Engineering NV, John joined Metorex in 2012.

His experience spans from Africa to Europe and the Far East. John spent six years at BHP Billiton Group as the General Manager of two of their chrome operations before moving to the corporate office where he spent six years as the Vice President responsible for Samancor Chrome operations in South Africa.

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M e t o r e x ( P t y ) Lt d

“Looking after its employees and the communities in which it operates are always regarded highly by the company which has developed a strong set of values it adheres to�

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Forging partnerships However, Metorex has high standards for its suppliers and only seeks to enter partnerships with those companies that are reliable and provide reliable components and services.

With regard to the construction works being carried out at the Kinsenda project, Metorex has partnered with South African based project management and engineering group, DRA, a diversified construction and infrastructure company Group Five, civil contracting firm Safricas, which is based in DRC, the MCK mining company based in the Katanga Province and component supplier, Outotec.

Looking after its employees and the communities in which it operates are always regarded highly by the company which has developed a strong set of values it adheres to.

“We have an acronym – PALETZ which is our mantra,” said Benfield. “P is for people focus, A is for accountability, L is for the long term perspective, E is for excellence in everything we do, T is for teamwork and Z is for zero harm.

“We have a vision and that is to grow a sustainable African-focused base metal mining company that offers opportunity for the development of our employees and communities, delivering to shareholders’ expectations and contributing to the development of our world,” concluded Benfield, quoting from the Metorex mission statement.

Company Information Industry

Mining headquarters

Gauteng, South Africa founded

1975 e mpl o y e e s

2,400 revenue

US$ 400 million products/ s e r v ic e s

Copper and cobalt

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Kirloskar Oil Engines Limited set

for major global expansion

India’s leading diesel engine and genset manufacturer is enriching lives at home and in Africa across fields from agriculture and construction to power generation and mining Written by: Tom Wadlow Produced by: Anthony Munatswa

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K i r l o s k a r Oil E n g i n e s L imi t e d

‘From its four state of the art factories across India, the US $400 million-revenue company produces air-cooled and liquid-cooled diesel engines’

Engine testing and assembly line 78

August 2014

I

ndia’s Kirloskar Oil Engines Ltd is on a drive to become a truly multinational business and ‘touch the world’ by powering vital industries with reliable engines and a second-to-none after sales service.

From its four state of the art factories across India, the US $400 million-revenue company produces air-cooled and liquid-cooled diesel engines for service industries, infrastructure projects and defence establishment among many other important sectors, and is the flagship company amongst the 33 major group companies.

It is leaving a positive legacy abroad in places such as Africa where agriculture and mining are being fuelled by its industry-renowned diesel engines.

This accompanies that which has already been achieved at home, where Kirloskar Oil Engines has greatly enhanced the farming sector since 1946 and holds a 34 percent share in the market for power generators through its brand “Kirloskar Green Gensets”.

Facilitating this vital society-building output is a core focus area, with emphasis also laid on enhancing the cutting edge research and development (R&D) facility.

Healthy relations with workers and strong adherence to corporate social responsibility and providing education to India’s population in environmental and sanitation issues are also key areas where the organisation continuously pays

mining

Engine testing and assembly line

key attention.

In being a peoples’ business, Kirloskar Oil Engines Limited is far more than just a provider of reliable diesel engines.

World-class factories Generating the company’s revenue are four sites across India producing engines of three to 11,000 horsepower, the oldest of which is in Pune alongside its headquarters.

In 2006 it invested US $175 million into a factory in Kagal, 300 kilometers from head office. Vice President of Exports Sunil Walunjkar said: “Here we have a 200-acre area and a world class single plant of 40,000 square metres with a capacity of 60,000 engines annually of 20 – 750 HP.

Key Personnel

Sunil Walunjkar, Vice President, Exports

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Leading the way in Electric Power Generation LEROY-SOMER, the worldleading specialist in industrial alternators and drive systems, designs and manufactures highly innovative eco-technological solutions to serve the industrial and large-scale commercial sector markets. www.leroy-somer.com

America - Europe - India - China/Asia

Robert FULWOOD DESIGN & CONSTRUCTION Building Design and Construction, General Civil Works, Property Development. +234(0)8033422598 robertkalango@rfulwood.com No 33 Ororgbum Crescent, GRA Phase 2, Port-Harcourt, Nigeria.

K i r l o s k a r Oil E n g i n e s L imi t e d

mining

“We have another location in Rajkot on the western part of India where we manufacture our smaller three to 20 horsepower engines for irrigation and agro-industrial applications.”

The final base is the large engine facility at Nashik, capable of manufacturing diesel engines in range of 2,400 – 7,200 HP for Marine and Power Generation applications.

KOEL high-selling

Enriching lives in Africa As in India, agriculture dominates the economy of many African countries with maize being the most important food staple on the continent.

Kirloskar Oil Engines Limited provides engines to power hammer mills continent-wide to 25 nations including Algeria, Nigeria, Tanzania, Uganda, Rwanda, Zimbabwe, Zambia and Angola. These mills crush the crop into a useable powder, helping to feed millions of people.

In Senegal, more than 2,300 Kirloskar diesel engine-driven pumps and over 20 drip irrigation systems across the Senegal river have increased the annual rice production from less than 100,000 tonnes to 460,000 tonnes by increasing the irrigated land from 24,500 hectares to 85,000 hectares.

Another key industry supported in Africa is underground platinum and gold mining. “South Africa is one of our major markets and we work with various mining houses like Aquarius Platinum, Anglo Platinum, Impala Platinum, Glencore, Lonmin Platinum, Goldfields and

and desirable Varsha pumpset

4R 1040 TBS III Engine used for diverse industrial applications

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K i r l o s k a r Oil E n g i n e s L imi t e d

An engineers’ training session at KOEL

“If the customer is satisfied in aftersales service then they will buy again and again” – Sunil Walunjkar, Vice President, Exports

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August 2014

Harmony Gold,” Walunjkar said.

The company produces a range of engines for equipment spanning LHD (Load-Haul-Dumper) vehicles, Drill Rigs, roof bolters, dump trucks and Low- Profile utility vehicles and Personnel Carriers to transport workers.

Walunjkar highlighted two reasons for continual success in Africa. “The first reason why we are successful here is because the mines work 15-16 hours a day and the production equipment has to

mining

run continuously, the engines must be reliable,” he said.

“The second is after-sales service. We fix problems in the shortest possible time, minimising loss of productivity. As a company we do not believe in selling just a product. If the customer is satisfied in after-sales service then they will buy again and again.”

Kirloskar Oil Engines Ltd. is also powering mining in Botswana, Zimbabwe and Zambia with

SL90 FMUL Certified fire fighting engine w w w. k o e l . c o . i n

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Above: Kirloskar Oil Engines supplies “Industrial Engines” which is widely used to

a view to opening up possibilities in the Ivory Coast, Tanzania and Ghana where the focus is more on open-pit as well as underground operations.

power the application of the “Drill Rig”

“There should be no fear of failure.

You can think exponentially, freely and try out various ideas, so long as integrity is in place” – Sunil Walunjkar 84

August 2014

Enriching lives at home Back in India the company’s engines have been upholding the country’s most important economic sector, farming.

It has spearheaded the world’s largest irrigation scheme and brought the Green Revolution to more than 4,600 towns and villages in droughtprone Saurashtra in Gujarat on the west coast.

Walunjkar added: “When we say enriching lives what we mean is that our products and services will benefit the lives of those using it. Take today’s farmers, his grandfather was also using Kirloskar

All engines are designed in-house and undergo rigorous testing procedures

pump sets.

“We run through the generations and our products last for 50 years without any problems.

Our pump sets will help you to get a more fruitful crop which will benefit peoples’ lives.”

Agriculture aside the company’s diesel engines power over 80 different applications across a spectrum of industries and Kirloskar Green’s Gensets form the backbone of satellite, cellular and telecommunications operations. In addition Kirloskar Green Gensets widely caters to specific power requirements across sectors like hospitals, hospitality, IT, infrastructure, banking and many more.

Engine design prototypes are tested across a range of

Industry-leading research A key part of Kirloskar Oil Engines Ltd. reaching

facets

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K i r l o s k a r Oil E n g i n e s L imi t e d

The company supplies engines for firefighting applications

“Different counties have different emission norms and we test that our engines fit the requirements of their destinations” – Sunil Walunjkar

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its global ambition is its industry-leading R&D department, made up of 200 highly skilled and efficient engineers in Pune and recipient of US $10 million of investment over the past two years.

All engines are designed in-house and undergo rigorous tests across a range of facets. One important area is noise solation, where the company has been successful in making its engines meet the Indian legal noise requirements of under 75 decibels within one metre of the machine.

It also has had a state of the art in-house Emissions lab since 2001 that helps in designing and maintaining the products to the regulatory requirements of exhaust emissions. “Different counties have different emission norms and we test that our engines fit the requirements of their destinations,” Walunjkar added.

mining

State of the art testing facility

“In Europe and North America the rules are more stringent than India and we are currently not selling big there but are designing products to meet those norms – soon we will get into these markets.�

The company is however supplying engines for firefighting applications into France, and is the only Asian company to have industry-recognised FM and UL certified diesel engines.

Load Haul Dumper, extensively used in underground mining segment, is one of the most demanding

Limca Book of Records A dedicated and happy workforce is behind the development, construction and after-sales service of Kirloskar Oil Engines Ltd, whose industrial relations is of record-breaking caliber.

Core values of integrity, creating wealth for all and worker empowerment filter through the ranks of the organisation.

applications that KOEL engines are successful in

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K i r l o s k a r Oil E n g i n e s L imi t e d

Kirloskar Oil Engines Limited facilities

“India is still a developing country, thus education is vital in helping children develop awareness of sanitation issues” – Sunil Walunjkar

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August 2014

The company has featured in India’s Limca Book of Records for being the only business to sign on time wage agreements before the standard three year cycle is up on seven consecutive occasions. The company’s 3,000plus employees are also given personalised evaluation and training programmes based on required skills.

This feeds an exemplary health and safety record, with a raft of industry certificates including Indian Army certification, for which it is a key provider of diesel engines, which are used for various applications.

The company also looks after people across the country, as well as the environment through its extensive Corporate Social Responsibility programmes.

mining

Company Information Industry

Diesel Engines (For-Agri Pumpsets, Industrial Engines and Generating Sets) headquarters

Pune, India founded

One such initiative is Vasundhara, which for the past eight years has involved 20,000 volunteers from the workforce and Indian public and 250 NGOs working on various environmental issues. Another is WaSH, a sanitation education programme whereby employees go into schools and provide vital tuition in the importance of hygiene.

Walunjkar added: “India is still a developing country, thus education is vital in helping children develop awareness of sanitation issues.” With a driven employee base and industry-leading products, Kirloskar Oil Engines Ltd. can truly look to ‘touch the world’ by 2025. “There should be no fear of failure. You can think exponentially, freely and try out various ideas, so long as integrity is in place,” Walunjkar concluded.

KOEL Founded in 1946 (Kirloskar Group 1888) e mpl o y e e s

3,000+ revenue

US $400 million products/ s e r v ic e s

Diesel Engines, Agri Pumpsets and Generators

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Guinness Ghana Breweries Ltd strives to become country’s most vibrant and iconic business

This award-winning business has strong values as well as a socially and environmentally-bound ethos aimed at making it a role model for other companies Written by: Sheree Hanna Produced by: Oliver Bishop 91

G u i n n e s s G h a n a B r e w e r i e s Lt d

“We are particularly aware of the growing middle class in Africa and that is one of the reasons we have effectively brought the spirits business, which used to operate through agents, inside the business” – Corporate Relations Director, Preba Greenstreet

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August 2014

G

uinness Ghana Breweries Ltd (GGBL) is on a path to become the most vibrant and iconic business in Ghana by 2017 following its recent £27.5 million investment in a new state-of-the-art brewing and packaging line at its Kaasi brewery.

The company is currently implementing a number of changes within its distribution systems and making innovations within its branding and marketing divisions, in a bid to increase its overall efficiency and stay ahead of ever-changing consumer needs.

This socially and environmentally responsible company, which is part of the world’s leading premium drinks business, UK-based Diageo, also strives hard to play a leading role in improving the lives and livelihoods of the community in which it operates, through a number of breakthrough initiatives.

It employs more than 700 permanent staff across its two sites located at Kaasi in the Ashanti Region and Achimota, in the Greater Accra region, and up to 500 contract staff.

In Ghana, it distributes a wide range of internationally celebrated brands including Johnnie Walker, Smirnoff and Baileys and on the beer and stout front, produces Guinness, Malta Guinness, Star and Alvaro as well as Ruut Extra Premium Beer, which was the first cassava-based beer on the market.

It currently produces some 2,000hl a day equivalent to 26,700 cases rattles out 36,000

food

Entrance to GGBL headquarters at the Kaasi Brewery site

bottles an hour on its just installed packaging line.

Corporate Relations Director, Preba Greenstreet, said: “We also distribute Heineken as they have a 20 percent stake in our business as well as other products in the Diageo range including the Johnnie Walker, Baileys and Smirnoff ranges.�

Merging interests The company was formed in 1960 and is the only Total Beverage Business to be listed on the Ghana Stock Exchange (August 23, 1991).

Guinness Ghana Breweries has existed in its current form since 2005 when Guinness Ghana Ltd merged with the Heineken-owned Ghana Breweries Limited. Heineken retained a 20

36,000

Number of bottled products produced in one hour

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Preba Greenstreet, CRD of GGBL and Faculty Team member of the McGill CSR Training Institute

500,000 Number of people across Ghana that now have access to safe drinking water as a result of the company’s CSR strategy

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August 2014

percent stake in the company.

With a clear goal in mind and aside from the recent capital investment, the company has been focusing on its distribution methods in its bid to broaden its customer reach.

Greenstreet explained: “We carried out a detailed study of our routes to consumers and realised from that there were opportunities for us to expand particularly into off-trade areas.

“Last year, we had a few major distributors as our prime customers but now we are evolving to a more efficient distribution model that is enabling us to capture the market opportunities we identified and to better serve consumers in those segments.”

food

Serving customers’ needs GGBL is also working hard at improving its ability to serve the off-trade more efficiently and effectively.

The company is aligning its brands to fit more snugly the various consumer profiles within the market. Traditionally, parent company Diageo has been primarily concerned with the premium end of the market in terms of its brand portfolio.

“In recent years, we have seen the opportunity of expanding in a number of different ways, innovating to include affordable products such as Ruut Extra and Gilbey’s Dry Gin” said Greenstreet.

“We are particularly aware of the growing middle class in Africa and that is one of the reasons we have effectively brought the spirits business, which used to operate through agents, inside the business.

“We have all the top brands such as Johnnie Walker, Baileys, Gordon’s and Smirnoff which we see as covering the space for the middle income consumer.

“We are also now trying to serve the more affluent end of the market with our reserve range of products such as Johnnie Walker Platinum, Gold and Blue.”

Baileys is also being directed at the sophisticated female consumer and for the mainstream market, GGBL has innovated a new portable spirits packaging line, nick-named ‘The Cube’ which enables the company to blend and package spirits locally.

“We have all the top brands such as Jonnie Walker, Baileys, Gordon’s and Smirnoff which we see as covering the space for the middle income consumer” – Preba Greenstreet

Baileys is a drink to attract the sophisticated female consumer

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Taking care of employees and helping them to develop is key to the business

Poster advertising campaign 96

August 2014

Sourcing ingredients The award-winning company won the first Best Taxpayer of the Year Award (Beverage category) from the Ghana Revenue Authority in 2011 for contributing three percent of total tax income to Ghana together with its value chain.

In a bid to play a socially responsible role within the community it operates, GGBL has implemented its local raw material initiative and has actively sought home-grown ingredients that it can use in the beer making process.

GGBL engaged with the Government of Ghana and it responded by providing graduated

food

Final stages of packaging

concessionary excise duty rates on utilisation of local raw materials (LRM) in the production of alcoholic beverages.

In line with the brewery’s commitment to move its LRM usage to 50 percent by mid-2015 it has shifted from 12 percent usage in December 2012 to 38 percent today.

Greenstreet said: “This has had a significant impact along the chain: we find that our increased local purchasing has created, broadened and deepened the supply chain, from farmers, through to aggregators and processors, as well as the provision of ancillary services to each of

7,000 Number of Ghanaian farmers the company uses to source sorghum and maize

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G u i n n e s s G h a n a B r e w e r i e s Lt d these groups.”

GGBL is also currently undertaking a baseline study to establish the ground position for the farmers in the cassava chain.

She said: “The excise duty concession has provided additional value primarily through an exciting new product, RUUT Extra Premium Beer, that has enabled us undertake the investment needed to integrate new brewing materials into our processes.”

The company now works with more than 7,000 Ghanaian farmers in the north of the country to source sorghum and maize and a further 3,000 farmers and a couple of large industrial farming companies to provide the cassava which underpins the formulation of its successful Ruut Extra Premium Beer.

supplier profile

food

“The excise duty concession has provided additional value primarily through an exciting new product, RUUT Extra Premium Beer” – Preba Greenstreet

renaizance supply chain

Vision: To transform supply chain management in Ghana by providing superior cost effective services that matter to our customers with the ingenuity of our people Mission Statement: Renaizance Supply Chain designs, implements and manages supply chain solutions. We deliver operational excellence through superior people, processes and technology. This gives our employees challenging and rewarding careers, our customers competitive advantages, and our shareholders sustained value.

Website: www.renaizancesupplychain.com

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G u i n n e s s G h a n a B r e w e r i e s Lt d Setting targets Its wide-ranging Corporate Social Responsibility strategy has also involved the company and other partners in helping to provide access to safe drinking water for more than 500,000 people across 65 communities in all 10 regions of Ghana.

The GGBL Water of Life programme has received numerous awards including the best company in CSR from the Association of Ghana Industry.

The company also takes a very strong stance towards responsible drinking through its Alcohol in Society programme.

Its programme is based on the five-pronged CEO Commitments adopted by the presidents of the leading alcohol producer companies of the world.

food

‘The company also takes a very strong stance towards responsible drinking through its Alcohol in Society programme’

GGBL products

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Preba Greenstreet, Corporate Relations Director - GGBL

In service of this and in the last year alone GGBL has undertaken four programmes, they are: What’s your Drink IQ – an engaging alcohol education initiative rolled out to 2,000 tertiary students of the University of Ghana and the Kwame Nkrumah University of Science and Technology (and soon to be available via internet link to all other tertiary students); Twa Kwano Mmo, an anti-drink driving initiative run in five transport terminals across Accra and Kumasi which engaged with 1,230 commercial drivers; training of 600 bar tenders through its Responsible Serving Programme under the Master Bar Academy (MBA) training;

Flagship meat pie products

Premium Foods Limited is a limited liability company with business operations at Jachie Pramso, Kumasi in the Ashanti region of Ghana.

Our core activities are; grains trading, grains handling and post-harvest management and processing of grains (maize, soybeans and rice) for industry and domestic consumptions for Ghana and the sub region. www.premiumfoodsgh.com info@premiumfoodsgh.com

Pieman’s produces a range of delicious savoury pies and other pastry based products, made from superior quality ingredients. We offer a tasty, versatile and wholesome meal for in-home or on-the-go consumption.

+27 11 953 4230 • enquiries@foodcorp.co.za

www.foodcorp.co.za

food

Peter Ndegwa - MD, GGBL w w w. d i a g e o . c o m

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“We very much believe in not taking our employees for granted and ensuring they are happy and to this end we carry out an annual survey which we take very seriously“ – Preba Greenstreet and the commissioning of research into alcohol consumption patterns, behaviours and attitudes.

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August 2014

Loyal employees Taking care of employees and helping them to develop and grow their own careers is also high on the agenda and it is testament to the company that many of its staff have been with the business for 10 years or more. The company was adjudged the best employer by the Association of Ghana Industries in 2013.

food

Company Information Industry

Beverage headquarters

Kaasi in Kumasi – Ashanti Region GGBL product range

founded

1960

“We are a hunting ground for many of the other multi-national companies operating in Ghana, which is a real challenge for us, but we work hard to ensure that the people we employ are aligned with our values and ethos as a company, and are motivated and engaged” said Greenstreet.

“We offer a variety of training from the shop floor through to leadership and mentoring.

Also through Diageo our employees can seek information online and take advantage of international training opportunities that build brand awareness and employee effectiveness.

“We very much believe in not taking our employees for granted and ensuring they are happy and to this end we carry out an annual survey, the Diageo Value Survey, to measure how employees are feeling and to obtain their feedback on a wide variety of issues,” she concluded.

e mpl o y e e s

700 permanent staff revenue

Ghc 483m products/ s e r v ic e s

Total Beverage Business - (Premium Spirits, Stout and Lagers, Nonalcoholic drinks, Ready to Drinks.

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Heineken in Ethiopia invests $150m in new brewery The greenfield facility on the outskirts of the capital Addis Abbaba will add 1.5 million hectolites capacity to the company’s annual production in a fastexpanding beer market Written by: Joel Levy Produced by: Oliver Bishop 107

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Heineken’s Harar and Bedele brewery brands

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August 2014

eineken Ethiopia is taking its production to the next level with a new $150m greenfield brewery, which will add 1.5 million hectolitres capacity and complement its established facilities at Harar and Bedele.

Opening later this year, the new greenfield brewery near the outskirts of Addis Ababa will create new jobs and new opportunities in the region, and increase the availability of the key brands Bedele Special, Bedele, Harar, Hakim Stout and Sofi Malt, while also producing a variety of Heineken global brand’s portfolio.

Alongside this, the company’s existing facilities at Harar and Bedele are being upgraded at a cost of $65m, as Heineken seeks to expand its reach and production.

Corporate Relations Manager Nebat Sukker said: “We are making good progress with the construction currently taking place and the new greenfield brewery will be operational by the end of this year.

“Our capacity is growing from 600,000 hectolitres in 2011 to roughly 2.4 million hectolitres in 2015, and can grow further depending on our needs.”

Ethiopia has become a key location for Heineken in Africa as a developing and growing market. A population of 90 million makes it the continent’s second most populated country, and its 4.297 million hectolitre beer market (2012 figures, source Canadian) has grown double-digits over the last years.

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An aerial view of the new greenfield brewery

Long history The latest investment displays Heineken’s longterm commitment, and also represents the latest phase of the Dutch brewer’s long African history dating back more than a century.

In 1900 the company was already exporting beer to various African countries including Ghana, Nigeria, Liberia and Sierra Leone; the first brewery in DRC was established in 1923 and it continued to expand across the continent.

Taking a major step into Ethiopia in 2011, Heineken acquired two breweries from the government for a combined $163m: the facilities which are currently being modernised.

Sukker said: “We are transforming the two companies that we bought from the government from more regional players to national players and the new greenfield brewery is an important element in this plan.

“Our capacity is growing from 600,000 hectolitres in 2011 to roughly 2.4 million hectolitres in 2015, and can grow further depending on our needs” – Nebat Sukker, Corporate Relations Manager

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Boiler installation for Heineken

Kuiper en Zonen, driven by steam since 1918 The family-owned business Kuiper en Zonen sells steam and superheated water boilers. We also offer rental projects and all types of boiler and burner maintenance all over the world .

From design to preparing your boiler for inspection Kuiper en Zonen employs a team of well-trained and skilled technicians.

www.kuiperzn.nl

Advertorial

Steam, warm & hot water boiler installations

Kuiper en Zonen congratulate Heineken with their success in Ethiopia.

From design to preparing your boiler for inspection. Kuiper en Zonen employs a team of welltrained and skilled technicians.

pressures, perform boiler and burner inspection, repairs and maintenance.

Besides Ethiopia Kuiper en Zonen has delivered, inspected and maintained dozens projects Kuiper en Zonen works for a variety for Heineken all over the world. of companies ranging from food, For example, in Burundi we are paper, textile, oil, gas and chemical preparing to install two new industries all over the world.

Viessmann steam boilers of 17 They have been delivering new and ton/h at 10 barg each. This order reconditioned turn-key boiler plants includes all piping, commissioning as well as auxiliary equipment in as well as training the operators.

Africa since the early 90’s. In addition At this moment we are installing they perform boiler and burner a large superheated water inspection, repairs and maintenance. boiler project in Rotterdam (The Kuiper en Zonen are a unique Netherlands) for a power company. partner to work with as they rent This project will deliver 70 megawatt. out boilers in all capacities and

H e i n e k e n I N E t h i o pi a

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Bedele Brewery packaging line

“At both Bedele and Harar breweries, we have invested substantially in line with our business plans, notably in the quality of our processes and systems; in production capacity; in the sustainability of our breweries, as well as in training and development of our staff, which have all contributed to the further development of our brands.�

Harar Brewery has invested in a new state-of-the-art waste water treatment plant ensuring that brewery effluent is properly treated, and Bedele and the new greenfield brewery have done the same.

A Ceremony marking the arrival of the brewery’s fermentation tanks

Investing in Ethiopia In meeting the increased demand for malt barley and other raw material created w w w. t h e h e i n e k e n c o m p a n y. c o m

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nigeria

www.re mc o.n l

He inek en B rew er ies Sh a re Co m p a n y Niger i an B rew er ies Pl c B e d ele B rew er y S h a re C o m p a n y B r al im a Bralima

ethiopia

DEMOCRATIC REPUBLIC OF THE CONGO

E ff ic ie nt ind ustr ial halls constructed exactly to size T h e R e m c o Group of c om p a ni e s in t he Net her lands and abro ad is co n s i d e re d t o b e one of th e l e a ding builder s o f st eel indust r ial premises an d s u p p l i e r a n d i n sta l l e r of p re - eng ineered building s. F o r o ver 40 y ea r s t h e y a re sp e c i a l i z e d i n d e s ig ning , eng ineer ing and co nst r uct io n o f s u c h b u i l d i n g s. The Af ri c a n tra c k reco rd co nt ains numero us building s in N i ge r a , Ga b on, Se n e ga l , De m o cr at ic Republic o f t he Co ng o and Et h i o p i a fo r a wi d e ra n ge of m ul tinat io nals and lo cal elit e co mpanies.

supplier profile

Remco afrique

Employees: 50 Established: 1972 Industry: The Remco Group of companies consist of various entities in various European countries and is specialised in the construction of production facilities and warehouses for a broad range of industries.

The companies are part of Janssen de Jong Groep, one of the leading construction companies in The Netherlands and the Caribbean.

Services: The Remco Group of companies offer one-stop-shopping to their clients by providing design, engineering, production and assembly of industrial halls integrated in one company. Over four decades of experience in industrial buildings only assure the availability of proven pre-engineered solutions for any kind of industry.

Ongoing Projects: Currently the Remco Group of companies is executing numerous appealing projects in amongst others Poland, Belarus, The Netherlands, Belgium, Surinam and Bonaire. Meanwhile in Africa numerous projects in Ethiopia, Democratic Republic of the Congo, Nigeria, Cameroon and Senegal are in various stages of development and execution.

Management: J.F.J. (Jan) van Vulpen, General Manager M.D.J. (Tino) Haze, Financial Manager E.H.D. (Erik) van den Hurk, Tender Engineer Export projects Website: www.remco.nl

H e i n e k e n I N E t h i o pi a by the current expansion, Heineken was keen to implement a strategy that would uplift communities at the same time.

It partnered with the ATA (Agricultural Transformation Agency) and the EIAR (Ethiopian Institute of Agricultural Research) for a four-year programme named CREATE (Community Revenue Enhancement through Technology Extension in Ethiopia).

The company and the Netherlands government committed to invest $2.72 million between 2013 and 2018 to increase food security, improve the livelihoods of smallholder famers and reduce reliance on imports by developing local barley production and connecting farmers to the Heineken Ethiopia supply chain.

By 2018, CREATE will have increased direct revenues for 20,000 smallholder farmer families; created 5,000 MT of additional barley for households or the local food market; and 10,000 hectares of land will be under improved malt barley management practices, increasing yields by using better seeds and more adapted farming techniques.

Heineken subsidiaries’ dependence on imported products will also be reduced by replacing an additional 20,000 MT of imported barley with locally produced barley.

Another Private Public Partnership (PPP) is the Sustainable Water Sources Harar (SWSH), signed last year with the Harar Regional State, Vitens Evides International B.V. and other institutions to

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‘The company and the Netherlands government committed to invest $2.72 million between 2013 and 2018 to increase food security’

Heineken products

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KHS Proudly Supports Heineken

H

eineken recently chose KHS as a reliable partner for Africa installing several KHS lines and extensions. The installed lines are located in Pointe-Noire (returnable glass line and syrup room), Kinshasa, Kisangani (partial returnable glass line) and there is a mixer and alcohol storage plant in Ijebu Ode. Further projects will be realized together in the very near future based on the common partnership to ensure Heineken’s growth concept in the region.

Heineken is putting its trust in KHS labeling technology with up to 80,000 bph also in Nigeria by ordering 3 new modular labeling machines.

This machine technology offers

Heineken breweries a high level of flexibility and future security to cover all possible label decorations. With the KHS Innoket SE modular labeler all modules are interchangeable in the range of cold glue, pressure sensitive and roll-fed modules.

The patented modular bottle orientation camera system enables Heineken to produce its containers with outstanding orientation results.

One of the latest projects between KHS and Heineken is the implementation of a KEG filling line at the new brewery set-up in Kilinto, Ethiopia. The capability of producing/filling all types of container makes the position of KHS unique in the market.

www.khs.com

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formally commence a sustainable water services project in Harar Regional State. This project is co-funded by the Dutch Ministry of Foreign Affairs through the Sustainable Water Fund.

This project will improve water access for 50,000 people, half of which are in deprived rural areas, using water buffering schemes and other supply solutions. As well as contributing $135,000, Heineken will also provide technical expertise.

Staff focus This knowledge transfer mirrors to the company’s approach toward its workforce. Heineken in Ethiopia’s staff benefit from numerous training sessions at home and abroad, focused on safety and technical capacity building to ensure

Fermentation tanks at the new Greenfield brewery

supplier profile

KHS

Industry: Filling and packaging Services: Our core competence lies in the development and production of both single machines and complete filling and packaging lines.

Management: Prof. Dr.-Ing. Matthias Niemeyer CEO Contacts: RSA: Joerg.thomas@khs.com / +27 11 262 1100 Kenya: denise.schneider-walimohamed@khs.com / +254 733 611253 Nigeria: michael.kloss@khs.com / +234 70 9800220 Website: www.khs.com

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A fully operable brewery on a greenfield - our EPC concept 30% saving - incontrovertible turnkey service.

Successful delivery to 50plus greenfield projects, 21 years dedication to brewing and packaging equipment.

Sep.9-12,2014

East Afripack

KICC, Nairobi Kenya

NINGBO LEHUI FOOD MACHINERY CO.,LTD

Add: Xiangxi Industrial Zone,Xiangshan County, 315722 P.R.China Tel: + 86-574-6583 6556 Fax: + 86-574-6583 61111

www.lehui.com

weixin@lehui.com

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Farming techniques in Ethiopia are centuries old

business processes meet the strictest standards.

Heineken Group specialist technicians also attend to train staff in other key areas including marketing, sales and IT. Additionally, technical operators (green teams) visit from various operating companies overseas to facilitate trainings and transfer knowledge. The Bedele brewery, for example, is currently hosting a South African green team. “We have also sent our employees to other operating companies and equipment suppliers on the continent and in Europe for training.

We benefit from the experience and knowhow from an international company, where we exchange best practises,� added Sukker.

In Ethiopia barley is grown for food and malting purposes

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Global provider of air conditioning & refrigeration solutions Turn key: design, project management, installation and commissioning Service, maintenance and training Compressor service and overhaul Monitoring and remote control Energy saving solutions and upgrades Compressors, chillers and heatpumps Pieter Zeemanweg 16 3316 BV, Dordrecht, Netherlands +31(0)78 625 2518 www.johnsoncontrols.com

Johnson Controls - Industrial Refrigeration

For a more comfortable, safe and sustainable world

LEADERS IN ENGINEERING TECHNOLOGY Holvrieka develops, builds and installs tanks and systems on a worldwide scale

W: www.holvrieka.com E: info@holvrieka-ido.nl T: 31-591-614888 F: 31-591-617234

Crates and Packaging specialists Certified Quality Products P.O.Box 80030 Addis Ababa - ETHIOPIA tel: +251.11629346 fax: +251.116293444 upfenthiopia@gmail.com

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Most smallholder farmers own about five Hectares of land

Making a difference On the sustainability side, a dedicated 10-year programme, launched in 2010, named Brewing a Better Future (BaBF) is another area of specific attention.

Sukker explained: “BaBF focuses on four key areas where we can make a difference: protecting water resources; reducing CO2 emissions and energy consumption; sourcing sustainably and advocating responsible consumption.

“Each of these areas is highly relevant to our day-to-day business operations, and to our stakeholders. We have already seen considerable

“We are transforming the two companies that we bought from the government from more regional players to national players” – Nebat Sukker

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Harar Brewery

Specialized & Focused SINTEC aims to contribute to the process of industrialization, transfer of technology and know how in a manner that is responsive to national resource endowment and absorptive capacity.

We see, we fabricate, we erect, we install, we build, we supply.

Let us partner & solve your problems.

www.sintec.com.et

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Heineken training programme ensures a high level of safety and technical understanding

improvements on most of these KPI’s (Key Performance Indicators) in our breweries.”

Heineken has also been active in improving healthcare. In 2013, the Heineken Africa Foundation committed $145,000 to upgrades at Bedele District Hospital in addition to $100,000 from Bedele Brewery SC and the $90,000 contributed to The Finkele Health Clinic project, focused on obstetric care.

The brewery has already provided an ambulance, new medical and laboratory equipment, and 55 people have been trained for the centre in collaboration with African Medical and Research Foundation (AMREF).

Spreading the word Heineken’s future plans in the country involve

“We want to become a major player in the industry by surprising and exciting our consumers with a great portfolio of brands, and by being a partner for growth in the communities in which we operate” – Nebat Sukker

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Patients and staff at Bedele District Hospital

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a focus on the further development of its supply chain. “We are very much involved in increasing the opportunities to source locally and are focused on our commitment to buy locally. We have local and global suppliers, Heineken approved, and we are trying to attract specialists to further develop the local supply chain,� Sukker said.

Such progress is necessary to stay ahead of the game in a rapidly developing market with an increasingly discerning clientele who demand

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Company Information Industry

Beverage headquarters

Addis Ababa, Ethiopia founded

2011 e mpl o y e e s

1,100 revenue

Not disclosed products/ s e r v ic e s

the best. With its huge investment, this is exactly what Heineken in Ethiopia will be able to offer.

Sukker concluded: “We are seeing more competition, faster growth in the market, more demand from customers, as well as more branding and marketing.

“We want to become a major player in the industry by surprising and exciting our consumers with a great portfolio of brands, and by being a partner for growth in the communities in which we operate.”

Bedele Special, Bedele, Harar, Hakim Stout, Sofi Malt, Heineken brands

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Makro expands its range with new ecommerce platform The South African warehouse club is giving its customers ever more ways to buy ever more quality affordable products, while maintaining a universally excellent experience across multiple channels Written by: Joel Levy and Produced by: Alex Barron

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‘We are very much positioned to cater to the needs of the higher-end customer who is looking for good quality and good value’ – Melanie Louw, Marketing Director

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ith the launch of its new ecommerce platform, South African warehouse club distributor Makro is further broadening its considerable appeal as it grows its market share based on a diverse and affordable range of quality products.

The last three years have seen a spate of activity for the company, in which time it has almost doubled its store presence, with the opening of nine outlets, and another large development planned for 2015, alongside a push into upgrading its delivery capabilities.

Makro online went live in March, complementing the 19 physical stores across the nation from which it distributes more than 55,000 product lines in three major categories: food, liquor and

food

New directional signage helps the customers find their way around the store

general merchandise, and conveniently bringing the company’s offering to ever more consumers.

Marketing Director Melanie Louw expects this new platform to go from strength-tostrength following its early success, adding to the ‘one-stop-shop’ nature of a company that provides business users and retail customers with everything from cleaning products to stationary, office desks to computers.

Makro store website

Ecommerce launch “We have always had an online presence from a research point of view, but recently we became an ecommerce site as well and it’s growing rapidly,” she said.

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The fresh department boasts vegetables and a butchery

Doug Jones speaking to the store staff before the ribbon is cut and the store is officially opened to the public 132

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popular with Makro’s customers and will continue building from a strong base, constantly adding new product lines over 2014, bolstered by a TV marketing campaign.

Customers can choose from affordable delivery to their front doors, or to collect their order carefully pre-packed from their nearest store.

Although Makro already had an online presence prior to this launch, the updated platform goes far beyond the original, adding many new lines, with the coming launch of a wide range of alcohol products a particular highlight.

Louw said: “We’ve had a fabulous response

food

in terms of traffic on the site. At this stage it’s only general merchandise available but in the next phase, towards the end of 2014, we will also be selling liquor online.

“This will be one of the biggest liquor stores in the Walmart stable online and we will move to food and dried groceries in the foreseeable future.”

The quality of the online presence will be familiar to Makro customers, as the company has strived to ensure a consistently excellent shopper experience across its multiple channels.

Louw continued: “Whether our customers interact with us through a telesales centre, direct or

Happy shopper at one of the famous Makro store openings

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SUPPLIER P R O FI LE

Tiger Management Services

Tiger Brands Limited is pleased to be associated with Makro and thanks them for their continued support.

T: +2711 840 4000

E: tigercsd@tigerbrands.com

W: www.tigerbrands.com

makro

food

online, they will get exactly the same experience, and we’ve certainly done that on our website.

“Our stores are massive but very modern, not a musty old wholesaler type experience.

And we wanted to replicate that experience online with a lot of white space and openness, bold colours, big buttons: very bright and inviting. At the end of the day, the in-store experience is what makes Makro.”

‘Whether our customers interact with us through a telesales centre, direct or online, they will get exactly the same experience’

Customer focus Makro, opened its first outlet in 1971 in Johannesburg, becoming South Africa’s first cash and carry operation. Since then it has continued to add new stores and capabilities to stay ahead of the curve.

The particular success of recent years can

– Melanie Louw

supplier profile

Tiger Brands

Tiger Brands Limited, a Top 40 JSE Limited company whose footprint extends across the African continent and beyond, is one of the largest manufacturers and marketers of FMCG products in Southern Africa, and has been for several decades.

The Group focus is on the core business of FMCG categories that spread synergy across the value chain which a broad basket of categories spans food, home and personal care as well as baby products.

Website: www.tigerbrands.co.za

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be attributed significantly to Makro’s intimate understanding of customers’ needs.

Part of the Massmart family (and also the Walmart group), Makro is a uniquely South African company that knows the nation’s consumers better than most. This understanding is further cultivated through its sought-after Makro card, which is available to business owners and retail customers.

Louw said: “What makes us extremely unique is that you cannot purchase from Makro without a Makro card, so we have a very unique customer database which tells us what a customer bought and when. That gives us a very intimate understanding of what our customers want or need when they shop, and we communicate regularly with them.”

supplier profile

SC johnson

We make homes better for families. SC Johnson is one of the world’s leading makers of household brands. We’re a 128-year-old family company, and our trusted products can be found in homes around the globe. We employ nearly 13,000 people globally and generate $9 billion in sales.

Our company is still headquartered in Racine, Wisconsin, where it was founded. We have operations in more than 70 countries and sell products in virtually every country around the world.

Website: www.scjohnson.com

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SUGAlite Cubes and Sugar Crystals White and Brown Sugar

Syrups and Molasses

EquiSweet Sucralose

Growing our Family of Products – and our Customers’ Profits – for more than100 Years

Making Every Day Sweeter

Baking Sugars

www.hulettssugar.co.za

®

At Kellogg’s, we believe a better breakfast leads to a better day, and that each day represents a fresh start to realise life’s potentials.

See you at breakfast

Consumer Affairs: Tel - 0860 200 601. Kellogg’s Press Office - Tel: 011 233 6600

kellogg.co.za

Makro

F ood

As well as giving its customers the right products, the company has aligned itself perfectly to give them these premium goods at the right price.

Louw said: “We are very much positioned to cater to the needs of the higher-end customer who is looking for good quality and good value. We will not necessarily be selling the cheapest laptop in the market, but we will be offering the best bundle with a carry case.

We have great prices on bundle deals and that is very much what we specialise in.

“With those great value deals that we offer, we end up being more affordable, and part of that is knowing our customers so well. The products and stock levels we carry are specific to our target market; we don’t carry unnecessary costs that filter down to our customers.”

The economy of scale comes into play in force to keep prices attractive, with national distribution centres serving stores daily with large trucks 100 percent filled with stock, maximising cost efficiencies and product availability.

Competitive advantage Makro’s decentralised trading culture means shop-floor staff are empowered to deal directly with customers, their thorough training and development leaving their employer confident in their ability to understand the market.

The faith Makro places in its employees has made it an attractive place to work, and

Key Personnel

Doug Jones, Managing Director

Melanie Louw, Marketing Director

‘We are very focused on supplier development, helping them, especially in the farming areas’ – Melanie Louw

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Engage.

Innovate.

Collaborate.

Collaboration is more than a technical solution, or product. It is experience that integrates people, processes, and technology and creates opportunity. At RCS we believe that by working together, people can achieve extraordinary things.

We understand the retail sector and apply our knowledge and experience of credit to provide retail credit solutions that are relevant and deliver growth. Together we create value for our partners, their customers and ourselves by combining competence and enthusiasm into successful business. This is what we have been doing in partnership with Makro over the years and will continue to do as they expand their markets and drive growth for their business.

As the largest provider of outsourced retail card programs in South Africa, we make it our business to constantly review our way of working with our partners in order to ensure that the credit solutions we offer are relevant to their environment and drive growth for their business. We want our partners to choose us for what we stand for, what we deliver and how we deliver it.

For More Information: Visit www.RCS.co.za

Fruitree is the Juice for all Occasions.

Refreshing Fruitree is available in a wide range of flavours, from Apple to the ever popular Mediterranean and Tropical. Tetra aseptic packaging & Glass are the preferred packaging formats to present the highest quality beverages, without the need for nasty chemical preservatives. An array of pack formats exists, from 250mL right up to 5L.

T: +27 (0)21 943 6900 F: +27 (0)21 943 9059 exports@ceres.co.za www.fruitree.co.za

VISIT US ONLINE

CLICK HERE

makro

food

for Q1 2014, year-on-year staff compliment increased by almost seven percent. This overwhelmingly local talent is fostered through a graduate training programme and access to Massmart development schemes, including via its Leadership University.

Responsible trading Makro’s excellent performance in South Africa makes it keen to repay the communities that have enabled it. The company donates one percent of its profits to the uplift of South African society through various schemes.

Louw said: “We are very focused on supplier development, helping them, especially in the farming areas, and we are extremely involved

Makro’s excellent performance in South Africa makes it keen to repay the communities that have enabled it

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Patleys is a leader in the distribution of local and imported fast moving consumer brands.

waxes, coatings and packaging adhesives

A division of of the Bidvest Group Limited

www. Patleys.co.za Tel: 011 2268800 12 Renaissance Drive, Crown Mines, Johannesburg

From one smart company to another.

Collect and Redeem

rewards points at Makro with UCount Rewards Here’s to 43 years of continued success Barloworld Logistics would like to congratulate Makro on its outstanding track record of consistently delivering comfort, convenience and affordability to South African businesses and homes for over 4 decades.

We look forward to a smart partnership that drives productivity, profitability and performance and delivers real value all round.

To join visit www.standardbank.co.za/UCount

R E W A R D S

With UCount Rewards you collect up to 10%* back in rewards points on groceries and up to 2.25%* back in rewards points on general merchandise purchases, when using a qualifying Standard Bank personal debit cheque and credit card. You can also redeem your rewards points at Makro using your UCount Rewards Card. UCount Rewards from Standard Bank. Just another way we’re moving you forward.

*Terms and conditions apply.

Authorised financial services and registered credit provider (NCRCP15). The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). Moving Forward is a trademark of The Standard Bank of South Africa Limited. SBSA 185606 7/14.

Moving Forward

TM

makro

food

with feeding schemes, and also schools. Those are the areas that we are really focusing on in terms of Corporate Social Responsibility.”

To this end, vendor’s engagement in the supply chain area is strongly supported through Walmart, with key strategic vendors regularly engaged to identify opportunities to jointly improve service to customers and identify efficiencies for mutual benefit.

The company also annually contributes more than R1.425 million to schools to assist with purchasing educational aids that directly benefit the learner. Through the Tomorrow Trust, it also assists orphans and vulnerable children in achieving invaluable academic qualifications.

Its feeding schemes, in partnership with charities and the Department of Education, works

Top left: Derick Kalan, Dean Bauer, Doug Jones, Pieter Schoeman, Garry Hendry, Jonathan Koff. From bottom left: Melanie Louw, Gert Lourens, Julie Wilford

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S’nethemba Day Care Centre receiving the gift card from Doug Jones, Managing Director of Makro

Housekids Educare Centre received a R30,000 Makro Gift Card as part of the Amanzimtoti Store Opening

Housekids Educare Centre receiving the gift card from Doug

to feed disadvantaged children both at school and during the holidays, and assists schools in setting up vegetable gardens in order to understand how to feed themselves, giving ownership to the food produced and a sense of empowerment.

Jones

Future advances It has been a big year for Makro so far, and the second half of 2014 promises further development and success for this thriving South African company. As the online platform strengthens, Makro will not stand still on the store 144

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food

Company Information Industry

Distribution & wholesale headquarters

Johannesburg founded

1971 e mpl o y e e s

Approx. 8,000 revenue

Approx. R21bn

front either, and is actively seeking to renew its formats, further tailoring the experience to suit is customers’ preferences and better engage underserviced regions.

An increased store footprint will also enable Makro’s focus on upgrading its delivery capabilities, with speed and reliability at the forefront of the company’s strategy going forward.

Makro has thrived on giving it customers what they want, when they want, in the way that they want. Both its ongoing strategy and future plans are a clear continuation of this process.

products/ s e r v ic e s

Food, liquor, general merchandise

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Passenger Rail Agency of South Africa (PRASA) brings

South African rail services to the top with R51bn rolling stock investment Written by: Joel Levy Produced by: Dennis Morales

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Prasa

With 600 new feature-packed trains being supplied by Alstrom, the Passenger Rail Agency of South Africa is fulfilling its mandate to give the country quality public transport fit for the modern era

X’Trapolis Mega train

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outh Africa’s state-owned public transport entity PRASA is in the midst of one of the world’s largest rail transport projects, having last year signed a R51 billion contract with Gibela - a joint venture led by Alstom - to supply 600 commuter trains with a total 3,600 coaches for delivery between 2015 and 2025. The contract came into effect in April 2014.

Alstom is supplying PRASA with its new highend X’Trapolis Mega trains which will fit the 1.067-metre gauge in South Africa, replacing ageing suburban trains in Pretoria, Johannesburg, Cape Town and Durban with state-of-the-art examples.

“A long time ago South Africa was a welldeveloped railway country,” said Gibela CEO

supply chain

Marc Granger. “This industry has not disappeared but has not benefitted from investment for a long time.�

Capable of speeds up to 120 km/h and with the potential to upgrade to 160 km/h, each new single-deck train can carry more than 1,300 passengers, and comes equipped with air conditioning, ergonomic seating, real-time onboard information, Wi-Fi internet access and a combination of direct and indirect lighting, all of which combine to deliver a spacious, comfortable and connected user experience.

They also set a high standard for sustainability, with a 95 percent recyclability rate, and a light stainless steel car body-shell which minimises weight, while the electrical braking system

1,300

Number of passengers a new single-deck train will carry

Carriages will be fully air conditioned

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Together we Shape the Future...

Siyangena Technologies specializes in electronic Security Systems with the provision of customer specific security and monitoring of alarm panels in a business environment.

Siyangena Technologies undertakes to use our extensive Electronic Integrated Security and Alarm Monitoring Centre experience to deliver tangible business results enabling our clients in the industry and government to profit from the advance use of unique technologies.

Products and Services

National Operations

Close Circuit Television Systems • Access Control Systems, Time and Attendance Systems • Building Automation Systems • Fire Detection services • Fibre Optic systems • Intrusion detection system • Perimeter detection systems • Public Address and Evacuation Systems

Offering integrated electronic security business solutions, Electronic monitoring and tracking Solutions, Monitoring of Alarm Panels in a business Environment and Green technology Solutions.

Pragason Subba Reddy, Managing Director Pretoria | Durban | Cape Town

www.siyangena.co.za | reddy@siyangena.co.za Tel: (012) 460 8216 | Fax: (012) 460 7465

supplier profile

Siyangena

A certified Broad Base Black Economic empowered company, Siyangena Technologies, is committed in endorsing successful partnerships with its clients, Government, Parastatals and private companies. We at Siyangena support and live up to our responsibilities, to serve and enhance the communities in which we work and live and the society on which we depend.

The Company’s Social Skills Development Policy, encompasses projects that are external to the business or outward looking; projects undertaken for the purpose of uplifting communities in general and those which have strong development approach, with a focus on Social, Developmental or Community aspects. The company has an immense emphasis on job creation.

Offering integrated electronic security business solutions, Electronic monitoring and tracking Solutions, Monitoring of Alarm Panels in a business Environment and Green technology Solutions.

Siyangena Technologies operates within South Africa and with regional offices situated in Pretoria, Durban and Cape Town.

Management: Pragason Subba Reddy, Managing Director Website: www.siyangena.co.za

Prasa

supply chain

Train manufacture

significantly reduces energy consumption.

Indeed sustainability is a core value of PRASA’s plans, with the enterprise stating its commitment not just to the financial ‘bottom line’, but to “environmental quality and social equity”.

Speaking at the new train design’s unveiling in July, PRASA Group CEO Tshepo Lucky Montana heralded the latest stage of the project.

He said: “It is running at full speed and we have successfully completed the first important milestone. We are very satisfied with the progress made and the results achieved, this train will become a national asset, which will satisfy the needs of our passengers and make them proud to use it.”

‘Gibela is to open a R1 billion factory in Dunnottar, Gauteng, to manufacture 580 of the trains domestically, which will create more than 33,000 direct and indirect jobs over 10 years’ – Tshepo Lucky Montana, PRASA Group CEO

Factory investment Early next year, Gibela is to open a R1 billion factory in Dunnottar, Gauteng, to manufacture 580 of the trains domestically, which will create more than 33,000 direct and indirect jobs over w w w. p r a s a . c o m

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Artist’s impression of Kempton Park Station

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August 2014

10 years, with Gibela training 19,500 young South Africans to perform the role effectively.

Construction of the facility will start before the end of the year.

The entire project is geared towards PRASA’s goal of revitalising South Africa’s rail industry to the high and efficient standard demanded by a modern society, with safety and reliability high on the agenda, and responds with conviction to the country’s growing commuter figures and the strain they place on the existing system.

supply chain

Key Personnel

Sfiso Buthelezi Chairman of the Board

However, though huge in scale, this project with Gibela represents just half of PRASA’s ambitious plans for South Africa. Its R123bn rolling stock programme is procuring some 7,224 new rolling stock over the next 20 years, with the second phase still to come as it promotes rail as the backbone of the public transport network.

New and ambitious It is the sort of vision that has characterised PRASA’s work since it was formally established

Tshepo Lucky Montana Group CEO

Dr Zanele B. Gasa FCIP Committee Chairperson

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“It’s of vital importance to mobilise the energies of each employee in creating a railway service that forms an integral part of the renewal of the transport system and our society as a whole” – Prasa website 76 percent of PRASA’s 17,000 employees are still employed by Metrorail

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in December 2008 as an arm of the National Department of Transport.

This act consolidated various South African transport entities including the urban commuter rail operator, Metrorail, regional and inner-city rail operator, Shosholoza Meyl and coach operator, Autopax. Investment company Intersite has also been included into the new entity PRASA, taking responsibility for PRASA’s investment, while PRASA Corporate Real Estate Solutions (CRES) is responsible for its property portfolio. Finally,

supply chain

its technical arm, PRASA Technical, manages its rolling stock depots and workshops.

The new establishment aimed to promote efficiency, innovation and accountability in South Africa’s faltering public transport system, fostering investment, addressing fragmentation issues and fulfilling the people’s desire for greater mobilisation at an affordable price.

The move was also influenced at the time by the country’s imminent hosting of the 2010 football World Cup, and the quality connectivity required by hosting a tournament on an international scale in various location across the country. Success in delivering this sporting event paved the way for the latest upgrades.

Today, 76 percent of PRASA’s 17,000 employees are still employed by Metrorail, and PRASA is aware that the dedication and expertise of its staff will be crucial in fulfilling its goal of providing South Africa with a world-class transport system that positively impacts on the entire country.

It states on its website: “It’s of vital importance to mobilise the energies of each employee in creating a railway service that forms an integral part of the renewal of the transport system and our society as a whole.”

With the huge investment plans underway and the clear set of values upheld on the course of the rolling stock project, PRASA seems set to fulfil its vision to be the South Africa’s Number One Public Transport Operator.

Company Information Industry

Transportation headquarters

South Africa founded

2009 e mpl o y e e s

17,000 revenue

Asset Value 38 billion products/ s e r v ic e s

Transport Systems

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