African Business Review - July 2014

SPECIAL REPORTS:

Guinness Ghana Breweries Ltd and Palabora Copper (Pty) Ltd

www.africanbusinessreview.co.za | July 2014

TOP 10

Longest-serving leaders

ELIAN WIENER

Q+A with Epic Communications Managing Director

EMBRACING E-LEARNING Can save money and time

Heineken in Ethiopia $150m brewery investment

IN THIS ISSUE

EDITOR’S COMMENT

Nice view from the top 8

Q&A: Boss of the Month

38 Top 10

Longest-Serving Leaders

48 Heineken

in Ethiopia

84

Guinness Ghana Breweries Ltd

162

Vodacom Business Africa

PR man, Elian Wiener, is riding on the crest of a wave after his consultancy, Epic PR scooped best African agency in a prestigious awards competition.

He epitomises what rewards drive and ambition can bring if you are prepared to work hard enough.

In our special Q&A with him, we find out how he got started and where he is going next.

Technology is taking over the world and undoubtedly making a significant impact on the world of education particularly for businesses who are embracing e-learning as a method of keeping staff on top of their game.

Also this month, marketing guru Jane Stevenson reveals why going tribal is the way ahead for keeping customers happy and we discover who has been in power the longest in our Top 10 which focuses on the continent’s leaders, many of whom seem reluctant to give up their seats.

Finally, our cover features a special report on Heineken in Ethiopia which is investing $150m in its brewing facilities.

E N T R E P R E N E U R , business journalist and

Sheree Hanna Editor sheree.hanna@wdmgroup.com 3

CONTENTS

FEATURES

8

30 Finance Take a step back to think about the risks

TOP 10

Longest-Serving Leaders

Q&A: Boss of the Month

38

Epic Communications Managing Director Elian Wiener

16 Marketing Going tribal is on trend to hit the right mark for your customers

22

Technology Embracing e-learning can save companies money and time

5

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CONTENTS

48 Heineken

in Ethiopia

122

Palabora Copper (Pty) Ltd

84 Guinness Ghana Breweries Ltd

COMPANY PROFILES

This month we feature some well known brands now operating on the continent - see Guinness Ghana page 84.

FOOD

TECHNOLOGY

48 Heineken in Ethiopia

162 Vodacom Business Africa

68 Makro 84 Guinness Ghana Breweries Ltd 98 Majesty Oil Mills

MINING 108 Kirloskar Oil Engines Limited

174 Likusasa

Vodacom Business Africa

MANUFACTURING 184 Treger Plastics

ENERGY 198 Kaztec Engineering

122 Palabora Copper (Pty) Ltd

SUPPLY CHAIN

138 Mintails

216 UTi Zimbabwe

148 Discovery Metals

162

174 Likusasa

7

Q&A: WHO’S THE BOSS

Founder of Epic Communications celebrates scooping top PR award Managing Director Elian Wiener says his business is on the right track after winning an African Consultancy of the Year gong W R I T T E N B Y: S H E R E E H A N N A 8

July 2014

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Q&A: WHO’S THE BOSS ABR: What did you want be as a schoolboy?

EW: A professional tennis player.

However, once I realised I had limited talents in this area, I knew I wanted to find a way to combine my creative talents with a passion for business and the world around us.

ABR: Where were you educated?

EW: I grew up in Polokwane in the Limpopo Province. I attended WITS University in Johannesburg where I obtained a BComm Honours Degree in Corporate Finance and Investments.

ABR: What influence did your parents have on your career choices?

EW: While my father was an engineer and my mother a pharmacist, all three of their children have established careers in the media or marketing environments.

One of my sisters is a leading journalist and published author, while the other occupies a senior PR position at a global tech firm. This is no coincidence.

From an early age my parents encouraged us to read and take an 10

July 2014

Reaching new heights

interest in the world around us. My mother took us to the library every week as children while my father insisted we read magazines such as Time and Newsweek.

ABR: Tell us a bit about your career path EW: After obtaining my finance degree, I spent time as an asset consultant at a large financial services firm. However, I realised that I wasn’t passionate about it and lacked the

ELIAN WIENER

“My father has instilled in me the importance of integrity. Your good name is worth more than all the money in the world” ABR: Who to date has been your biggest influence?

EW: My father has instilled in me the importance of integrity. Your good name is worth more than all the money in the world.

creative element I craved. I switched careers and became a business journalist.

After a few years I was approached by another large financial services company to join their corporate communications division.

While it was certainly not by desire, the experience gained in these roles proved a perfect combination for my own business venture and gave me a large advantage over many competitors.

ABR: What does success mean to you?

EW: It’s changing as I get older. So right now, it is multifaceted. From a business perspective, it’s about creating an environment where all stakeholders can benefit, grow and be inspired.

From a broader perspective, it is about putting yourself in a position where you are the master of your own destiny so that you can enjoy the things in life that matter the most to you.

ABR: What motivates you?

EW: I’m very competitive, so I’m 11

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July 2014

Q&A: WHO’S THE BOSS

ELIAN WIENER

always pushing hard to stay out in front.

ABR: You must be very proud to have scooped the African Consultancy of the Year award – what does it mean to you personally?

EW: My stated vision for Epic Communications is to be the most admired integrated communications agency in Africa.

This award tells me we are definitely on the right track. As an entrepreneur, it is hugely satisfying to know that you are building something of substance.

ABR: How did you end up starting your own PR agency?

EW: I realised that there was a huge gap in the market for a communications agency with more than just a champagne and balloons offering.

Companies that differentiate themselves through their intellectual capital in particular need assistance to communicate their expertise effectively to their target audience.

I knew that my background equipped me to do this and gave me a competitive advantage. While the

“It is about putting yourself in a position where you are the master of your own destiny so that you can enjoy the things in life that matter the most to you” 13

Q&A: WHO’S THE BOSS

business has evolved significantly since then, content generation remains one of our key strengths.

Initially I entered into a partnership with a global public relations agency, but after a few years I realised the opportunity to grow the company was limited and I started Epic Communications.

ABR: What has been Epic Communication’s recipe for success?

EW: Firstly, right from the start we have had a very clearly defined value proposition. We took on the existing competitors in areas that they were weak and we were strong.

We have also been agile in evolving as an agency in line with the changing communications landscape. The rise of digital communications platforms has necessitated a shift from being a 14

July 2014

“There are no mistakes – only lessons.

Seriously.” traditional PR agency to an integrated communications company.

Finally, we have enthusiastic, committed and skilled employees.

I have always been very selective about the people we bring in to Epic so we have created a great resultsdriven culture. We also have creative incentive structures, which are great motivators.

ELIAN WIENER

ABR: How important do you consider journalism skills in the world of PR? EW: In my opinion, strong content generation ability is critical for PR and communications practitioners. It is hard to acquire and is the reason why many journalists are lured over to the communications industry.

ABR: Tell us in three words the top characteristics a good PR person must possess?

EW: Clarity, Passion, Curiosity ABR: What was the best piece of advice you ever received?

EW: Read ABR: What was the worst?

EW: “Don’t worry. Old Alpha Romeos are very reliable.”

ABR: Do you work to live, or live to work?

EW: I live to live ABR: What do you like to do in your free time?

EW: I play a lot of sports, I travel extensively and spend quality time with my daughter

ABR: What advice would you give to young entrepreneurs?

EW: Find what you love to do, make sure you are the best at it – then do it for yourself ABR: What was the biggest mistake you ever made?

EW: There are no mistakes – only lessons. Seriously.

ABR: Having reached such a pinnacle in the PR world, what are your aspirations for your agency now?

EW: As mentioned, we want to create the most admired integrated communications agency in Africa.

In a rapidly changing world, this means redefining what we do to incorporate the fact that people are communicating with each other and consuming information in a vastly different way than they were five years ago.

We are moving from a traditional PR agency to one that makes use of multiple channels, including social media, to help our clients communicate effectively with their target audiences and achieve their business objectives.

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MARKETING

Going tribal is on trend to hit the right mark for your customers The old top-down approach of marketing is no longer relevant for those forwardthinking companies that really want to connect and engage in more meaningful relationships. Jane Stevenson of BoomtownSA explains

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July 2014

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MARKETING

BUILDING REPUTATION GOES beyond building brand awareness. It’s connected to engagement, sharing, brand ambassadors and, of course, long-term relationships and loyalty.

And this cannot be achieved unless we completely understand and connect with consumers. It can be argued that tribal marketing is the future of marketing and the only way to truly build relation-based loyalty with savvy consumers in today’s global marketplace.

Conventional marketing wisdom 18

July 2014

segments markets into groups of consumers based on simple demographic segmentation.

This works on the premise that people of a similar age, of the same gender, income bracket, social class and ethnic grouping will probably purchase or have a need for similar products.

But, this ignores social identity: groups that individual’s self-identify as important to them; differentiating us from them. These groups with common behaviours and interests,

GOING TRIBAL IS ON TREND TO HIT THE RIGHT MARK

even causes, are known as tribes.

The tribal nature of humans brings the complexity of individuals to the fore. In marketing terms, tribes allow marketers to speak to people on a more individual level rather than speaking to a general group.

Square peg, round hole Companies, however, are yet to fully understand the value of investing in research for tribal differentiation.

The world we live in is fragmented with blurred boundaries. People no longer fit into round holes assumed by marketers, and they do not make rational decisions. Instead, we are guided by our emotions and passions.

We want our world to have meaning and our purchases to say something about the values; to tie in with our sense of who we are and the loyalties we have. We are more demanding and more informed than ever before.

We belong to a number of tribes simultaneously; this allows us to express different aspects of our personality and beliefs.

We have many facets of our personality which are not identified in traditional demographic segmentation.

CONNECTING FACTORS Let’s look at an example: Sarah, 26 and Helena, 48. Both work in the same office, and in traditional demographics would have been targeted differently.

This doesn’t take into account that Sarah and Helena share a passion for organic produce, reducing their carbon footprint and buying local goods. These shared passions are connecting factors that place them into the same tribe despite their demographic differences.

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MARKETING Tribe culture Through tribal marketing we are able to speak to who they are instead of what they are, enabling marketers to foster deeper, more meaningful engagement, allowing a relationship to be built.

The old top-down approach of marketing is not relevant today. As humans, we seek to share and express our passions – we want to be linked to other people like ourselves. We want to belong to a tribe. The challenge for marketers is to create a culture within tribes.

Firstly, we need to gain insight into the world of the consumer through understanding the experiences they share, how they identify with one another and the collective actions or activities. Once these connections have been established, marketers can develop strategies that inspire content to engage each tribe.

Social unit Tribal groups and brand communities are emerging and multiplying at a phenomenal rate. Although not exclusive to the digital sphere, the development of online technologies has proved a breeding ground for 20

July 2014

these subcultures to congregate and thrive.

People share information on online social platforms, seeking out connections and building links with like-minded people. Digital technology is therefore no longer just a communications channel but a source

‘Tribal groups and brand communities are emerging and multiplying at a phenomenal rate’

GOING TRIBAL IS ON TREND TO HIT THE RIGHT MARK

of vital information.

Author of Tribes, Seth Godin, argues that the internet has ended mass marketing and revived tribes, a human social unit from the past.

Built on ideas and values, tribes give ordinary people the power to lead and make changes, to become influencers.

“People form tribes with us or without us. The challenge is to work for the tribe to make it something better.”

The marketer’s challenge is to create awareness within a tribe and to speak to the interests by grasping the core of tribal marketing – which is to truly understand people.

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TECHNOLOGY

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July 2014

Embracing e-learning can save companies money and time

Kirsty Chadwick, Executive Chairman of The Online Training Room, tells us how technology is driving a revolution in education and training W R I T T E N B Y: S H E R E E H A N N A

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TECHNOLOGY E-LEARNING IS A multi-million dollar global business which has been around for longer than most people think but is now growing at a faster pace as more companies become aware of its cost and time effectiveness.

It first began in 1998 and has spread around the globe as technology has enabled more and more individuals to make use of what it has to offer.

Africa has been no exception and e-learning companies such as The Online Training Room have sprung up to meet the demand for tailor-made content and learning systems.

Kirsty Chadwick, Executive Chairman, started the company in 2008 and today employs 80 people focusing on four specific industry sectors: financial services, mining and industry, telecommunications and publishing.

The Online Training Room is primarily a content production house and is equipped to develop content which can be provided in any format including film, animation, 2D, 3D, gamification, mobile apps and content.

Chadwick said: “Information technology is used as an enabler 24

July 2014

“If it is compulsory to train staff on a regular basis to meet new legislative requirements then e-learning is an effective solution and it is currently a big driver for our business”

in many fields but from a learning perspective it’s just been a bit slower on the uptake on how we use the technology.

“However, it is starting to find its place in the education system and transform the way we think about education and the whole teaching and learning process can be looked at from multiple angles now.”

EMBRACING E-LEARNING

Legislative changes Compliance issues within the financial services industry is providing a growth market for e-learning firms at present as companies look for quick and cost-effective methods to keep staff up-to-date with changing legislation. “If it is compulsory to train staff on a regular basis to meet new legislative requirements then e-learning is an effective solution and it is currently a big driver for our business,� said

Chadwick.

The beauty of e-learning is that it can be done at any time and any place, whatever is most convenient for the learner.

It is also much less time consuming then traditional classroom methods which for a company would entail an employee maybe taking a day away from the office for a classroom-based session thus resulting in a loss of productivity.

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TECHNOLOGY

“Another big area for growth is that our learning management systems do not just house content but also feature a tracking and reporting engine” Learning modules might comprise 30 minute sessions that can be spread over 10 days, meaning that staff would not have to leave the office to participate.

The Online Training Room has already developed a lot of content which is available off the shelf but it is also able to tailor the content to specific needs of clients.

“Another big area for growth is that our learning management systems do 26

July 2014

not just house content but also feature a tracking and reporting engine,” explained Chadwick.

Strategic goals “So from a regulatory perspective when the regulators need evidence that training has taken place the system is capable of issuing a report detailing all the individuals who have gone through the e-learning modules and also any results of assessments

EMBRACING E-LEARNING

HOW E-LEARNING IS TAKING EDUCATION

BY STORM Learning On The Job…77 percent of American Corporations use online learning Move up in your company by becoming eLearning savvy Think eLearning is New? No way…. it was begun in 1998 and is now 13 years old!

Get on board before this train leaves you behind. People eLearn all sorts of new things

attached to the learning.”

The Training Room Online is also working closely with clients whose strategic goal from a learning and development perspective is to do 70 percent of learning development through technology and 30 percent in the classroom.

“We are developing a lot of blended learning solutions so there is still some classroom time in that but with e-learning designed around it,” said

Keep Up with the Global Competitions… the US & Europe utilise 70 percent of the world’s eLearning, but Asia Pacific is gaining ground We all know that global competition is fierce. eLearning will keep us in the game The fastest growing eLearning markets are Vietnam and Malaysia eLearning is a $56.2 billion business and is likely to double in size before 2015

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TECHNOLOGY

“In terms of our own growth, it is important for us to develop our own talent to ensure we have a pool of competent content designers and specialists around the learning technology field for the future” Chadwick.

The future of e-learning looks set to go exponential as not just businesses switch on to its benefits, but also the education system in general.

More and more schools and universities are turning towards the use of technology to teach pupils and students, who have been born in an era where personal devices such as tablets and smartphones are a normal method of communication and they 28

July 2014

don’t know any different.

By 2019, it is anticipated that half of all college courses will be taught online.

Educational gaming “For the Millennial Generation it is the preferred way for them to learn. They spend so much of their time on devices and are very comfortable with them, so if you can put learning into gaming then things like gamification are going to increase significantly,” said Chadwick.

EMBRACING E-LEARNING

HOW E-LEARNING IS TAKING EDUCATION

BY STORM Efficiency is key… corporations now use eLearning as their second most important training method.

Why? It cuts operational costs Corporations save 50-70 percent when they replace instructor-based training with eLearning Not Just Cost, But Time… eLearning classes are generally 25-60 percent shorter in duration than traditional classes

The growth of The Training Room Online is also being nurtured with the advent of a new training hub, the first entrants of which were due to sign up at the beginning of May. Chadwick concluded: “In terms of our own growth, it is important for us to develop our own talent to ensure we have a pool of competent content designers and specialists around the learning technology field for the future.”

Timing is everything… the world is changing more rapidly than ever.

The best way to stay on top of the latest upgrades in your industry is eLearning. 72 percent of companies surveyed report that eLearning keeps them on top of their industry changes By 2019 HALF of all college courses will be taught online. Right now, more than 4.6 million college students are taking at least one course online In 2011, 51 percent of companies did at least one training session with eLearning to more than 50 percent of their employees

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FINANCE

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July 2014

Take a step back to think about the risks Businesses that fail to consider the setbacks they face are foolhardy, and it can mean the difference between success and failure, writes Gerrie van Biljon, Executive Director of specialist risk finance company for SMEs in South Africa, Business Partners Ltd E D I T E D B Y: S H E R E E H A N N A

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FINANCE

BUSINESS OWNERS ARE so busy juggling the daily challenges of managing their business, suppliers, clients and staff that they often fail to take a step back and assess the various risks that they face.

Gerrie van Biljon, Executive Director of Business Partners Limited, said that while it is not very pleasant, in the midst of this juggling, to dwell on the negative incidents that can still go wrong, the simple act of thinking about these, and the mere awareness of it, can mean the difference between 32

July 2014

success and failure.

He said: “In our daily dealings with small and medium enterprises (SMEs), we have seen setbacks within businesses as a result of disasters that have struck throughout the years, namely external disaster such as floods, power outages and new legislation.

“But there are also internal business risks such as computers crashes, new competition, strikes and new innovation.”

While it is important for business

‘Business owners need to accept that they cannot think of everything and instead need to concentrate on the basics’ – Gerrie van Biljon, Executive Director of Business Partners Limited

owners to deliberately set aside time to assess the risks facing their business, they also need to be aware of key areas within their business that could potentially be affected as a result of these risks, explained van Biljon.

“Business owners need to accept that they cannot think of everything and instead need to concentrate on the basics,” he said.

A crucial awareness These include fire, theft, accident, loss of key personnel and loss of data. By 33

FINANCE

Calculating the right risks 34

July 2014

THINK ABOUT THE RISKS

‘By installing some form of access control, a business can dramatically lower its chances of being burgled’ – Gerrie van Biljon listing the basics and spending time considering these risks in the context of the business, they have already done more than many other business owners, and have awakened a crucial awareness.”

Van Biljon however advised against undertaking the exercise alone as this may lead to significant aspects being left off the list of possible risks which face the business.

He recommended that business owners approach any large corporation that they deal with, either suppliers or clients, and ask how these parties consider risks. Where possible he advised that business owners use experts to assist.

He said: “Risk management is a fairly recent discipline in the corporate world, but most large organisations have undergone at least a few formal risk assessment processes.

“Knowledge of the approach to risk is therefore relatively widely spread in those organisations and a sympathetic

contact on the inside could be willing to help with some pointers.”

He added that ideally, business owners should contemplate each of the set of risks one by one, prioritise them according to how likely they are to happen, and put precautions and contingency plans in place.

Regular exercise “For example, most business robberies happen after the perpetrators have scouted the

35

FINANCE premises by gaining entry under some pretext, such as pretending to be looking for someone. By installing some form of access control, a business can dramatically lower its chances of being burgled.”

He added that risk assessment is unfortunately not simply something that a business owner can do once to get it over with.

“Risk assessment is an exercise that needs to be done regularly as a business’s risk changes constantly, not only because of changes inside the business, but also because of changes in the environment around the business.”

Some of these risks can be countered, or at least the entrepreneur would be aware of the possible risks, said van Biljon. “A strategy or a back-up plan can be instituted and where possible insurance should be in place.

“Insurance experts could assist a business owner with a general risk assessment that will protect the business against inadequate or inappropriate cover.

Survival of cleverest “It is however imperative that the 36

July 2014

business owner selects a reputable and knowledgeable insurance broker to minimise the risk as it is certainly possible for a business to be overinsured, and insurance is only a small, if crucial, part of risk management.”

He said that even if few business owners get around to implementing regular, formal risk management processes, it is important to adopt

THINK ABOUT THE RISKS

GERRIE VAN BILJON PROFILE

Implementing regular, formal risk management processes awareness and an approach to business that takes risks into account. “It comes down to the survival of the cleverest. The cleverest business owners learn from setbacks of others.

Average business owners learn from their own setbacks, and the foolish never learn; neither do they last long in business,� concluded van Biljon.

Gerrie van Biljon graduated at the University of Pretoria with a BCom (Accounting) and follow this with a MBA from the University of the North-West with majors in financial management and entrepreneurship.

He started his career as an accountant and also managed a furniture group for four years. He joined Business Partners 25 years ago as a business analyst with the main responsibility of viability analysis. He moved up the ranks to be appointed Regional General Manager in 1996 and was appointed as Executive Director from 2002.

He is responsible for Business Investments on a national basis with regional offices in Durban, Cape Town, Port Elizabeth and Bloemfontein and 18 branch offices. His team is responsible for the sourcing of deal flow, due diligence studies, heading the investment committee and the post investment management. His portfolio includes 2 500 investments representing R2.1 billion. His staff complement is 103.

He is a member of Executive Management and has a seat on the main board of the company.

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TOP 10

TOP10 Longest-Serving Leaders

African countries are somewhat unique in that many of its government leaders stay in office a lot longer than elsewhere in the world. Here is our list of who has held on for the longest Written by: Sheree Hanna

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TOP 10

09

Idriss Deby Itno

President of Chad since December 2 1990, 23 years in office. He has survived several rebellions against his rule. At least seven national liberation armies have sprung up to challenge his rule and in 1992 the French sent in troops to help suppress the armed gangs known as N’Katha Zulu operating on the Sudan border.

10

Denis Sassou Nguesso

President of the Democratic Republic of the Congo since October 25 1997, 17 years in office. He was previously President from 1979 to 1992. He is no stranger to controversy and during a United Nations General Assembly meeting together with his entourage occupied 44 rooms at the Waldorf Astoria costing a whopping ÂŁ130,000.

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July 2014

L O N G E S T- S E R V I N G L E A D E R S

07

Blaise Compaore

President of Burkina Faso since October 15 1987, 27 years in office.

He came to power following the murder of his predecessor Thomas Sankara. He is the founder of the ruling party, the Congress for Democracy and Progress and was officially elected president in 1991 and subsequently re-elected three times.

08

Omar al-Beshir

President of Sudan, assumed office on June 30 1989, 25 years in a power. A former brigadier of the Sudanese army he came to power after leading a group of offices in a bloodless military coup that ousted the government of Prime Minister Sadiq al-Mahdi. He became the first sitting president to be indicted

by ICC for directing a campaign of killing against civilians in Darfur.

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TOP 10

05

Yoweri Museveni

President of Uganda since January 29 1986, 28 years in power. While he took part in rebellions which ultimately resulted in the demise of former leaders Idi Amin and Milton Obote, he initially brought economic stability to the country.

However, in order to extend his rule he was successful in scrapping limits on presidential terms during a 2005 referendum.

06

King Mswati III

King of Swaziland since 1986, 28 years in power. He was born in Switzerland in 1968, as one of many sons fathered by the previous King Sobhuza II, who is believed to have had 125 wives during his reign. Mswati is also known for his practice of polygyny and has 15 wives.

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July 2014

L O N G E S T- S E R V I N G L E A D E R S

03

04

Paul Biya

Teodoro Obian Nguema

President of Equatorial Guinea since October 12, 1982, 32 years in power. He ousted his uncle Francisco Macias Nguema in a military coup in 1979 and has largely been responsible for overseeing his country’s emergence as a major oil producer since the early 1990s. Forbes magazine estimates he has a net worth of US$600m and is one of the world’s wealthiest heads of state.

President of Cameroon since November 6 1982, 32 years in power. Born in 1933 and a graduate of the Louis Legrand, Sorbonne and Sciences Po Paris, Biya has previously been ranked 19th in Parade Magazine’s top 20 list of the World’s Worst Dictators.

In October 2011, Biya secured a sixth term of office, polling 77.9 percent of votes cast. He promised to stimulate growth and create jobs with a programme of public works.

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L O N G E S T- S E R V I N G L E A D E R S

02

Robert Mugabe

President of Zimbabwe, since December 22 1987 and head of Government since 1980, 34 years in office. Born in 1924, Mugabe was one of the leaders of the rebel groups against white minority rule

and was elected as Prime Minister, head of government in 1980. He then became the country’s first executive head of state and has been repeatedly elected ever since. The former school teacher has been criticised for his racism against Zimbabwe’s white minority.

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TOP 10

01

Jose Eduardo dos Santos

President of Angola, assumed office on September 21 1979, 35 years in office. As president he is commander in chief of the Angolan Armed Forces and president of the People’s Movement for the Liberation of Angola (MPLA), the party that has ruled Angola since it gained independence in 1975.

He was born in 1942 and was elected as president of the MPLA on September 20 1979 and became President of Angola.

He was instrumental in establishing the African Countries Diamond Producers Association, set up to encourage and promote market cooperation and foreign investment in the African diamond industry. Criticism has been levelled at the leader for not doing enough to meet the needs of Angola’s population, the majority of which live on less than $2 a day.

In the meantime he has amassed a huge fortune by investing in leading businesses and international corporations.

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July 2014

Jose Eduardo dos Santos

Dmitry Medvedev (left) in Angola 2009

L O N G E S T- S E R V I N G L E A D E R S

Lula da Silva, the President of Brazil in 2003

Dos Santos (fifth from the left) at the Brandenburg Gate during a 1981 state visit, with East German officials

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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 49

HEINEKEN IN ETHIOPIA

H

Heineken’s Harar and Bedele brewery brands

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July 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.

FOOD

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

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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

HEINEKEN IN ETHIOPIA

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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

HEINEKEN IN ETHIOPIA 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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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

HEINEKEN ETHIOPIA

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Farming techniques in Ethiopia are centuries old

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

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

HEINEKEN ETHIOPIA

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Most smallholder farmers own about five Hectares of land

safety and technical capacity building to ensure 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 are transforming the two companies that we bought from the government from more regional players to national players” – Nebat Sukker

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

Heineken offers a variety of training

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.

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

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

“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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HEINEKEN ETHIOPIA

Patients and staff at Bedele District Hospital

Through the Heineken Africa Foundation, the company has heavily invested in local healthcare

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

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Company Information INDUSTRY

Beverage HEADQUARTERS

Addis Ababa, Ethiopia FOUNDED

2011 EMPLOYEES

1,100 REVENUE

Not disclosed

increasingly discerning clientele who demand 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.”

PRODUCTS/ SERVICES

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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W

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

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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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MAKRO SA

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 72

July 2014

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

This is a 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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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 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.”

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

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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 w w w. m a k r o . c o . z a

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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

The difference between design and total design.

As the leading manufacturer in the Home Appliance industry, Whirlpool understands your needs and knows, that everyday you take care of all the things you love in a unique and special way.

Our 6TH SENSE technology, senses, adapts and controls the appliances intuitively to always give you perfect results every time. Whirlpool sixth sense technology monitors and automatically adjusts the performance of your kitchen appliances, offering outstanding results and significant resource savings.

With over 100 years of experience dedicated in household appliances, we continuously strive for No.1 performance.

Discover the new 6TH SENSE technology: your extra power for perfect results, intuitively as never before.

www.whirlpool.co.za

MAKRO

FOOD

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 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

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.

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.

Specialist in food processing equipment At Rademaker, we have managed to transform bakery traditions of the past into robust, state-of-the-art industrial bakery production lines.

Call +31 (0) 345 543543 for the specialist in food processing equipment and industrial baking systems.

Or visit us at www.rademaker.com.

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

MAKRO

FOOD

farming areas, and we are extremely involved 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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MAKRO SA

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, Managing Director of Makro

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July 2014

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

FOOD

Company Information INDUSTRY

Distribution & wholesale HEADQUARTERS

Johannesburg FOUNDED

1971 EMPLOYEES

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/ SERVICES

Food, liquor, general merchandise

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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 85

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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July 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

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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 w w w. d i a g e o . c o m

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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

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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July 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.”

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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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G U I N N E S S G H A N A B R E W E R I E S LT D

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

Poster advertising campaign 90

July 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

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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

Preba Greenstreet, Corporate Relations Director - GGBL

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

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

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Peter Ndegwa - MD, GGBL

CEO Commitments adopted by the presidents of the leading alcohol producer companies of the world.

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

‘The company was adjudged the best employer by the Association of Ghana Industries in 2013’

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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

“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

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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; and the commissioning of research into alcohol consumption patterns, behaviours and attitudes.

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.

EMPLOYEES

700 permanent staff REVENUE

Ghc 483m PRODUCTS/ SERVICES

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

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Company logo goes here

Majesty Oil Mills: Majesty Oil Mills couples pioneering work with continuous investment The oil processor has unique facilities in South Africa and is making further investments within its considerable sole property to offer a wealth of services on a larger scale Written by: Sam Jermy Produced by: Alex Barron

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MAJESTY OIL MILLS

Headquarters at West Krugersdorp, South Africa

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M

ajesty Oil Mills has invested R6million in new production facilities and become the first in South Africa to produce Lecithin as part of an ongoing expansion programme.

The oil processor has also earmarked R50m for a new silo complex, which is expected to be constructed in the next six months, and is also planning an R30m upgrade of its TVP plant.

The innovative company which operates from an 116,500 square metre production facility in West Krugersdorp, near Johannesburg, has a capacity of 250 tonnes of Lecithin product a month, and produces 60 tonnes a month at present.

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Billy Pillay, who has been Majesty Oil’s Chief Executive Officer since the company’s inception in 2000, is excited about leading the way in the production of Lecithin and has announced further multiple investments.

He said: “Our new product, Lecithin, is the first of its kind in South Africa. Basically, Lecithin is made from the gums that we extract out of the oil.

“It is used in the margarine and paint industry, as a form of binding agent. We’ve got the texturised vegetable protein line, regular oil, Lecithin, Oil Cake, and then the full-fat which is a separate line. So we have two production lines.”

The new Lecithin plant was a turnkey project which involved local sub-contractors Flintstone Engineering and India-based Kumar Metal Industries, which supervised the installation.

Pillay explained that there are also further plans to construct a new sunflower extraction plant costing a projected R300m. The entire Krugersdorp plant is worth approximately R400m.

Majesty Oil was established in 2000 and initially started crushing cold-press sunflower seed in its first premises. It didn’t have any solvent plant and experienced a lot of problems with electricity because the site where it was located on a rural farm area, and this impacted the company’s decision when it was looking at expanding the plant.

For the first month it produced

Key Personnel

Billy Pillay Chief Operating Officer

“Our new product, Lecithin, is the first of its kind in South Africa… it is made from the gums that we extract out of the oil” – Billy Pillay, CEO of Majesty Oil Mills

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MAJESTY OIL MILLS sunflower oil but then made a decision to change to soya bean, and Majesty is still crushing soya beans today.

Soya beans

Soya bean cake

“We have a good quality product and as a result our order book is full a year in advance” – Billy Pillay

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July 2014

Industrial hub The main industrial hub at Krugersdorp houses all the company processing plants and lines, including the new Lecithin plant.

Pillay explained the products Majesty Oil provides. He said: “We do soya bean oil processing and the product we get out is the oil cake, which is used in the animal feed industry.

Full-fat soya is also used in the animal feed industry. Then, as well as regular oil, we started a section for human consumption which is called texturised vegetable protein.”

Strategic Management With regard to supply, Majesty Oil provides some of its products to Seaboard trading and shipping (Pty) LTD, an international overseas trading company. The company speaks directly to endusers and clients, but uses Seaboard Corporation as a vehicle to carry out and manage contracts.

It uses the same principle when working with Olam International, also an international trading group, which manages an integrated supply chain for Majesty Oil and helps create greater value in products. In terms of exports, Majesty Oil supplies Olam International and it then sends the oil products to countries such as Zimbabwe and Zambia.

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XXXX

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MAJESTY OIL MILLS The actual soya beans are sourced via agents as the company does not buy them directly from farmers at present. Four or five different agents are used to supply the beans and contracts are normally signed a year in advance.

Looking after employees is another key focus for the company, because within such a specialised industry such as the Lecithin plant, the skills and expertise required are not always readily available in South Africa.

This means most of its senior staff have been with the company since inception and are nurtured to management levels through

Market Research Safex Services Management of Stock Planning of Marketing

Strategies Agricultural Commodity Contracts Ex-Silo Transations

www.unigrain.co.za

+27 11 692 4400

info@perdigon.co.za www.perdigon.co.za @perdigonsa

Trading of summer grains and oilseeds

Grain Storage

Proud Supplier to

Majesty Oil Mills

Trading of winter grains

Grading of derivitives on the JSE market

Tel : 021-870 3960 Fax : 021-872 8548

FOOD

comprehensive, ongoing training.

“We don’t have much turnaround of staff. Twice a year we will get external boiler specialists to do training with our operatives,” Pillay said.

“Other than for medical, safety and boilers, we get in house training. The plant is specialised for specific needs for oil extraction and there isn’t the facilities in this country for that sort of training.

“At the moment we have a few apprentices in the workshop section. This current group will take three years to go through the course, and at the end of it we will have readily available and highly qualified staff.”

“We are the first to start to producing and processing soya bean on a large scale and we have been in operation for nearly 10 years, we are an established brand in the market” – Billy Pillay

Soya bean cake

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MAJESTY OIL MILLS

Majesty Oil production plant based at West Krugersdorp, South Africa

“The main challenge is whether South Africa can produce enough soya beans...”

– Billy Pillay

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Future plans and challenges Majesty Oil has looked to import soya beans from South America, but mostly sources from within the continent including Zambia and Malawi, and more frequently local South African beans.

Pillay said: “The main challenge is whether South Africa can produce enough soya beans and also to try and minimise the importation of the soya oil cake.

FOOD

Company Information INDUSTRY

Oil processing HEADQUARTERS

West Krugersdorp FOUNDED

2000 EMPLOYEES

228 REVENUE

R850 Million PRODUCTS/ SERVICES

“We were the first to start to producing and processing soya bean on a large scale and we have been in operation for nearly 10 years, we are an established brand in the market whereas others go through teething problems with setting up to get the quality right.

“We have a good quality product and as a result our order book is full a year in advance. We do want to see vertical integration within Majesty Oil, and hope to grow more on the Oil Cake line”.

Lecithin, Oil Cake, fullfat soya, texturized vegetable protein, regular oil

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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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KIRLOSKAR OIL ENGINES LIMITED

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

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July 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.

Key Personnel

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.

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

Karbochem (Pty) Ltd is an Independent South African producer of a wide range of synthetic rubbers for the tyre and industrial rubber manufacturing markets, including the commodity types: • ESBR (Afpol) • SSBR (Afsol) • Low cis-BR lithium catalysed rubbers (Afdene)

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.

As well as: • High cis-BR neodymium catalysed rubber (Neodene) • 3,4 Poly-isoprene (Isogrip)

Karbochem Holdings wholly owns Karbochem (Pty) Ltd and The Synthetic Latex Company (Pty) Ltd For further information contact our marketing office at: Tel: +27 11 601 1660 Fax: +27 11 616 6651 CONTACT PERSONS John Lithgow Carrie Blackburn Eastgate Office Park, Block A, Ground Floor, South Boulevard, PO Box 581, Bruma 2026

KIRLOSKAR OIL ENGINES LIMITED

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“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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KIRLOSKAR OIL ENGINES LIMITED

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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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

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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

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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 116

July 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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KIRLOSKAR OIL ENGINES LIMITED

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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July 2014

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.

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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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KIRLOSKAR OIL ENGINES LIMITED

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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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.

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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) EMPLOYEES

3,000+ REVENUE

US $400 million PRODUCTS/ SERVICES

Diesel Engines, Agri Pumpsets and Generators

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Palabora Copper invests in future with mine extension plan South Africa’s leading refined copper producer continues to take care of its people with major investments planned to extend mine’s life Written by: Sheree Hanna Produced by: Anthony Munatswa

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PA L A B O R A C O P P E R ( P T Y ) LT D

Copper is a primary product

P Copper product

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July 2014

alabora Copper Ltd’s mission is to grow sustainably and profitably while delivering excellent value to all of its stakeholders, including its employees, shareholders and the community within which it operates.

Producing some 60,000 tonnes of refined copper a year, located in the Ba-Phalaborwa area of the Limpopo Province, Palabora Copper is South Africa’s only producer of refined copper and provides the local market with 85 percent of its copper requirements.

However, the current operation, the Lift I Project, is expected to come to the end of its life in early 2016, and in an endeavour to extend the life of the mine by a further 20 years, the company is hoping to develop a second underground pit, the Lift II project.

In 2013, a pre-feasibility study was concluded,

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and the board decided to move on to the full feasibility study which was also completed in May 2014. For that period company spent about R700 million in the early work and declines.

Keith Mathole, the company’s General Manager for Corporate Affairs and Company Secretary, said at the time of publishing: “The board has yet to make a full decision on the Lift II Project, full development which is expected to possibly run until 2022.

“The approval would mean we will be running one of South Africa’s biggest underground mine development currently which will see about R10 billion being spent on the development works.”

As part of its growth strategy, the company is also aiming to insure its yields of magnetite, a byproduct of the copper operations, and meet the production targets of the planned new operations.

“Producing some 60,000 tonnes of refined copper a year, Palabora Copper is South Africa’s only producer of refined copper”

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PA L A B O R A C O P P E R ( P T Y ) LT D

Refinery: Anodes are placed in the refinery tank house in large cells containing acidified copper sulphate solution

Upgrading facilities It has already built and is in the process of commissioning a new R156million Belt Filter Plant which will enable the company to force-dry six million tonnes of magnetite a year to meet export needs.

The Board has also approved a further R170million spend on upgrading the Magnetite Booster and Separation Plant. This plant will process and upgrade the magnetite from 58 percent iron oxide grade to 65 percent magnetite grade.

Further works have also been undertaken to assess future business and technical operations regarding the copper processing operations including upgrading the Smelter to maintain

A B O U T PA L A B O R A C O P P E R ( P T Y ) LT D Palabora has been in operation since it was incorporated in 1956 and is South Africa’s only producer of refined copper. During the 1960s, 1970s and 1980s, the company’s open-pit copper mine and associated processing plants produced over 2.7 million tons of copper. Palabora is listed in the JSE. Producing about 60,000 tonnes of refined copper per year, the company supplies most of South Africa’s copper needs and exports the balance.

The company owes its origin to the unique formation known as the Palabora Igneous Complex. Nowhere else is copper known to occur in carbonitites as is the case at Palabora, and a host of other minerals such as phosphates, vermiculite, phlogopite, magnetite, nickel, gold, silver, platinum and palladium also occur.

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July 2014

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compliance with new government air quality regulations.

Previously known as Palabora Mining Company, the entity was incorporated in South Africa in August 1956 when it was owned and managed by Rio Tinto, which held 57.7 percent of the shares, and Anglo American which has 16.8 percent.

The Palabora mine has been in operation since it was incorporated in 1956 and during the ‘60s, ‘70s and ‘80s the open-pit copper mine and associated processing plants produced more than 2.7 million tonnes of copper.

On September 5, 2012, the two companies, thus Rio Tinto and Anglo America, announced their intention to sell their respective interest in Palabora and on December 11, they had reached

“The approval would mean we will be running one of South Africa’s biggest underground mine development currently which will see about R10 billion being spent on the development works” – Keith Mathole, General Manager Corporate Affairs and Company Secretary

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The Safest Future In International Contract Mining Byrnecut Offshore is an internationally recognised underground mining contractor that specialises in underground mine development, mine production and underground mine feasibility. This includes shotcreting, raise drilling, equipment rebuilds, maintenance engineering, labour hire and mine engineering consultancy services.

Since starting its international operations in 1999, Byrnecut Offshore has grown into one of the most experienced underground mining contractors across the globe. Byrnecut Offshore currently employs over 1,000 people worldwide with operations in South Africa, Democratic Republic of the Congo, Tanzania, Ghana, Saudi Arabia and Kazakhstan.

The Palabora Copper Operation is located on the outskirts of Phalaborwa, a town situated on the eastern border of Kruger National Park in the Limpopo Provence of South Africa. It has been in operation since 1956, where it was initially mined though open-pit methods, and in the later stages by underground block caving. In order to extend the life of the project, a second block cave of production life is required.

In October 2011, Byrnecut South Africa (Pty) Ltd entered an alliance style contract with Palabora Copper (Pty) Limited, to manage the safe execution of some 11,000m of underground development as part of the Lift II Early Works Development. The twin parallel declines (consisting of a conveyor and service decline) from the current operating Lift 1 Level down to the Lift 2 block cave footprint and other associated airway development are critical in extending the life of mine to 2030.

Since the beginning of Byrnecut South Africa’s operation at the Palabora Copper Mine, development has continued with high speed mechanised trackless mobile mining methods and efficient safe systems of work – a standard unsurpassed in a shaft access mine in South Africa.

Byrnecut South Africa (Pty) Ltd has worked with Palabora Copper (Pty) Limited in an alliance style contract to reduce costs, up-skill South African employees and improve work ethic and safety culture. A comprehensive training and skills progression program of South African employees has been implemented

by Byrnecut South Africa (Pty) Ltd in order to maintain a superior safety record and provide a sustainable contribution to both the local and wider community through knowledge and skills transfer.

BYRNECUT OFFSHORE PTY LTD

www.byrnecutoffshore.com 130 Fauntleroy Avenue, Redcliffe, Western Australia 6104 Telephone: +61 8 9373 1150 Facsimile: +61 8 9373 1151

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agreement for its sale to a consortium led by the Industrial Development Corporation (IDC) of South Africa Ltd and China’s Hebei Iron & Steel Group.

Company mantra The refinery produces continuous cast rod for the domestic market and cathodes for export. Byproducts aside from magnetite include zirconium chemicals and nickel sulphate as well as small quantities of gold, silver and platinum.

Palabora also owns a nearby vermiculite (a versatile industrial mineral with many industrial uses) deposit which is mined and processed for sale worldwide.

It has a strong company ethos towards looking after its people, of which it employs about 2,200,

SUPPLIER PROFILE

1956 Incorporated in the Republic of South Africa in 1956, located in the Limpopo Province and listed on the JSE Limited

BP CASTROL

BP has been supplying lubricants through the Castrol brand to Palabora Copper since 1995, and fuel since 2003. Following the acquisition of Castrol by BP in 2000, BP was awarded the full hydrocarbon contract in 2003. The scope of the contract, delivered via BP’s Castrol Optival, included on-site management of all hydrocarbons and identification of value-creating opportunities for Palabora Copper.

Going forward, we look forward to building an even stronger partnership with Palabora Copper.

Website: www.castrol.com

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®

Crest Chemicals

Lake Foods Lake Specialties

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Our reagent suite is: • Xanthates (collectors) • Senkol (collectors) • Senfroth (frothers) • Sendep (depressants) • Senfloc (flocculants)

Our service solutions are: • • • • • • •

Bench scale/metallurgical evaluations Statistical evaluation and data validation Product development and optimisation On-site product management Site-specific account management Supply chain control (e.g. telemetry and bulk distribution) Plant safety audits

PA L A B O R A C O P P E R ( P T Y ) LT D

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and to this end is a strong supporter of the South African Government’s Broad-Based Black Economic Empowerment (BBBEE) and the Mining Charter.

It has developed a comprehensive Transformation Strategy supported by a set of policies and procedures that seek to address the seven elements on the BEE scorecard and is committed to fostering an inclusive equal opportunity workplace.

The revised South African Mining Charter emphasises a target of 26 percent black ownership of the country’s mining assets by 2014 and Palabora has already achieved that as previously disadvantaged people have a shareholding; thus community 10 percent, employees, 10 percent and BEE Consortium six

SUPPLIER PROFILE

5

56

37

2 Product Revenue Contribution (%) Copper By-products Magnetite Vermiculite

AECI SENMIN

AECI is an explosives and specialty chemicals group domiciled in South Africa. Group businesses service the mining and manufacturing sectors both locally and internationally. The focus for growth is on Africa, South East Asia and South America. AECI’s businesses are characterised by application know-how and service delivery. They often operate in niche markets and are supported by leading technologies which are developed In-house or are sourced from international partners.

Website: www.aeci.co.za

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PA L A B O R A C O P P E R ( P T Y ) LT D percent which meets the Department of Mineral Resources requirements of 26 percent.

Copper slab produced from the smelting process

PO Box 102, Phalaborwa, 1390 Tel: +27 15 781 1571/2 Fax: +27 15 781 3292 reception@sullwald.co.za

Chartered course In line with the charter, its operations have social and labour plans with targets which have been developed in collaboration with employee representatives, communities and BaPhalaborwa Municipality.

The company states: “We are actively moving towards the achievement of employment equity and steadily progressing towards meeting the procurement targets as set out in the Mining Charter.

SULLWALD PROJECTS (Pty) Ltd

SULLWALD PROJECTS is a Phalaborwa based company creating job opportunities for more than 300 local residents. SULLWALD PROJECTS under its directors Hermann Sullwald, Karl-Heinz Sullwald and Kenneth Thupayagae list quality service and community upliftment as the driving force behind their team.

SULLWALD PROJECTS is a Level 4 BBBEE contributor.

MINING

“In order to increase the number of black businesses supplying to the company, we have introduced a supplier development programme, in October 2013, which has seen 30 local companies being selected to start accessing opportunities within the mine.

“The idea is to ensure that we also grow an industry of reputable small and medium sized enterprises that can create further jobs and sustain the livelihood of Ba-Phalaborwa beyond mining.

“The appointment of Historically Disadvantaged South Africans at professional and managerial levels has increased from 44.8 percent at December 31 2010 to 62.6 percent the following year, with the appointment of women reaching 12.1 percent compared to 10.6 percent the previous year.”

The company has written and developed its code of ethics to follow strategic imperatives which include: providing a safe and healthy work environment for all employees and contractor employees; practicing sound environmental management to ensure the sustainable biodiversity of the natural environment within which it operates.

We acknowledge and respect our stakeholders’ interest and concerns; striving to be a leading corporate citizen within the mining industry and supplying a high standard of quality products and service both reliably and responsibly at national and global level.

Key Personnel

Jinghua Han Executive Director and Chief Executive Officer Jinghua became CEO of the Company in 2013 and was appointed to the board as Non Executive Director. He began his business career in July 1985 by joining Handan Steel Company (now part of Hebei Iron & Steel Group) after graduating from the Hebei Mechanical and Electricity Institute where he majored in Industrial Electricity and Automation. Mr Han was awarded an MBA degree in 2008 from the Beijing University of Communications.

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PA L A B O R A C O P P E R ( P T Y ) LT D

Top: Changing the steel drill. Above left: The company supports women workers throughout the mining industry Above middle: Production level Above right: Cage entrance

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Duty of care Palabora is also working hard to improve the lives of those living in the Ba-Phalaborwa communities. A number of initiatives have been launched to help the communities of Makhushane, Maseke Mashishimale, Selwane and Majeje.

Palabora Copper, through the Palabora Foundation, has worked with a number of other stakeholders to deliver a range of projects aimed at improving the health, education and infrastructure in the region.

Projects have included establishment of the new Phelang Wellness and Disease Management Centre which has recently opened to the public

MINING

and been set up to help prevent and deliver treatment, care and support of HIV, TB, STIs and access to social services.

The company has also built a modern Early Childhood Education Centre offering places for 80 children for the Selwana Community and through the Palabora foundation it provides grade eight learners with The Learner Support Programme which offers 120 students with potential an incubation and educational enrichment program in maths, science, biology English and World of Work.

Company Information INDUSTRY

Mining HEADQUARTERS

Phalaborwa, Limpopo, South Africa FOUNDED

1956

Between 2011 and early 2013 The 30TEN+5 programme was designed to assist 45 local entrepreneurs with training and operational and/or financial support to build their existing enterprises.

They have received help in variety of ways from entrepreneurial training, funding support, administrative support or the support of joint venture and partnerships which result in substantive skills transfer.

The company’s commitment to its Palabora mining operations is evident in its allencompassing strategies to not only provide good returns for its shareholder but to display a profound duty of care to both its employees, the surrounding environments and the community.

With such a strong growth plan in place it is clear the company will successfully be producing copper for many years to come.

EMPLOYEES

2,200 KEY PEOPLE

Keith Mathole, General Manager; Corporate Affairs and Company Secretary REVENUE

Not disclosed PRODUCTS

Copper, Magnetite, Vermiculite

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Mintails is on a

mission to revive South Africa’s West Rand Tailings miner and gold producer will more than double its capacity by October and is looking to expand underground activities, including the regeneration of degraded land to help address the country’s chronic housing shortage Written by: Tom Wadlow Produced by: Bobby Meehan

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M I N TA I L S

The extraction of minerals from ore requires that the ore be ground into fine particles

“This project is a demonstration of principle rather than sheer volume…it shows that underground mining here is possible and a viable thing to do” – Jan Jacobs, General Manager of Operations

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G

old tailings and hard rock miner Mintails is set to boost its production capacity by the end of the year following the regeneration of its flagship Mogale Gold plants on South Africa’s West Rand.

Not only does the Australian-listed firm aim to become the country’s second-largest tailings miner within five years, but also to greatly increase its underground and hard rock activities, signalled by the recent opening of its D-shaft asset.

In achieving this expansion the challenge of regenerating old underground basins comes to the fore, with the company carrying out vital dewatering work which will not only allow it to mine the freed-up gold but also pass on revived land

MINING

post-closure to help address a chronic housing shortfall.

Mogale Gold The extraction of minerals from ore requires that the ore be ground into fine particles, so tailings are typically small and range from the size of a grain of sand to a few micrometres and are usually produced from mills in slurry form.

On completion in September-October this year, the Mogale site will be able to treat six million tonnes of tailings slime, sand and hard rock.

General Manager of Operations Jan Jacobs added: “The re-opening of the second Mogale plant will take capacity up by 400,000 tonnes to over half a million tonnes a month. This is not our only development, but is by far the biggest ongoing project.”

The company, set up in 2005, acquired the Mogale site in 2006 which saw it taken out of government control. In total it controls around 106 million tonnes of tailings resources.

Going underground Alongside its continuing open-pit operations, Mintails is targeting significant growth underground and opened its D-shaft asset in February this year, producing around 5,000 tonnes a month.

“This project is a demonstration of principle rather than sheer volume,” Jacobs said. “It shows that underground mining here is possible and a

Inspection of the mine site by Operations Managers

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M I N TA I L S

Bringing the water quality up to a level where it can be used utilised more sensibly

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MINING

viable thing to do, as we project all-in costs of around $800 per ounce which is extremely cheap.

We are targeting blocks left behind by previous miners in the 1950s.”

“This will be a big focus for us, moving from open-cast mining to significant tonnes of underground production, around 1.5 million over the next five years.”

But for the company to be successful underground it must decant the target basins and bring the water level down from its current level of around 60 metres to an eventual target of 500 metres. It is working closely with the government on the first step of getting the water down to the environmentally critical level of 160 metres.

Such a task requires enormous commitment.

Jacobs added: “It’s not just the pumping cost, it’s the fact it is dilute sulphuric acid and treatment of this is very expensive. Any discharge must be at an environmentally sensitive level and have patented our own process for this.”

Mintails has managed to reduce the cost of treatment from R8 per cubic metre, about the cost of drinking water, to a much more viable R3.

It is also working closely with South African universities to bring the water quality up to a level where it can be used in applications beyond discharge back into the environment.

Rescuing land Not only will clearing basins of acidic water enable further mining activity, it will also revive degraded

Key Personnel

Jan Jacobs, General Manager of Operations Joined Mintails in 2008 with several years of metallurgical experience in the mining industry, specifically in CIL/CIP, Acid and Flotation Plants. Jan has had strategic and operational exposure in project management delivering complex projects. He has brought energy and focus to the operational management of Mintails, with specific value to its CIL plant and furthering the ambitions of the company in delivering its hard rock mining opportunities.

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Tailings are small and range from the size of a grain of sand to a few micrometres

“Mintails aims to release 8,000 hectares of land for settlements having alleviated around 600 to date’

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land to a safe level for the construction of housing, something which is desperately needed in the Johannesburg hinterland.

It is already recovering land through open cast mining by removing the on-surface reef outcrops and stabilising the area, and post-closure operations will become a top priority for the company.

“Although mining has taken place here for the last 120 years no single gold mine has achieved closure of mines, it has always been signed back,” Jacobs said. “We want to be the first ones to close mines.

“Environmentally, the West Rand is among the worst. In the late 1990s all mining slowed down, all

MINING

Site inspection

pumping stopped, all maintenance stopped and land sat there to degrade for 10 years. We need to leave it in a state that is useful again.

“Unfortunately due to a chronic shortage there are a lot of informal settlements popping up and these people are living in areas of high environmental degradation.”

Mintails aims to release 8,000 hectares of land for settlements having alleviated around 600 to date. The programme is made up of a 20-year plan with the company board comprising of considerable expertise in the property market, a key area for the business post-closure.

“This won’t be a quick fix,” Jacobs added. “Dewatering is a short term solution and we have to

Onsite technology

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M I N TA I L S

Onsite technology

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July 2014

MINING

stop it filling up again. We need to bring benefits to the society we operate in while still giving shareholder value and we’re doing this at present.”

Hands on Ensuring Mintails continues to excel above and below ground on these important works is its 250 employees and further 550 contracted workers, all from local communities. This is set to rise to more than 3,500 as underground operations pick up.

Training is thus a huge priority, and the company runs its own hands-on training shaft, giving workers first-hand experience of the vital skills required as well as a practical approach to safety rather than the typically bureaucratic style seen in bigger mining houses. It has not suffered a fatality since it began in 2005.

It is also compliant with Black Economic Empowerment (BEE) regulations through a wholly meritocratic attitude to employment, making this legal must an irrelevancy when coming to hire the best available.

“These people are partners, not BEE partners,” Jacobs said. “A lot of companies have made mistakes in pushing the BEE numbers for the sake of complying with the rules.”

With the best on board Mintails can complete its short term goal of becoming the second-largest tailings miner in South Africa while looking ahead to effective longer-term strategies post-closure, ultimately becoming a key partner in the battle to address the national housing shortfall.

Company Information INDUSTRY

Mining HEADQUARTERS

Armadale, Australia FOUNDED

2005 EMPLOYEES

850 REVENUE

Not disclosed PRODUCTS/ SERVICES

Tailings and hard rock gold mining, acid mine drainage

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Discovery Metals goes underground for copper in Boseto heartland The Botswanan exploration and production expert is building on impressive copper and silver outputs with the Zeta project, one of three proposed underground mines planned to boost lifespan and capacity Written by: Tom Wadlow Produced by: Anthony Munatswa 149

D I S C O V E R Y M E TA L S

D Mine workers

Primary Crusher reinforcing bar

iscovery Metals is set to open up new opportunities underground at its flagship Boseto asset as it looks to maximise exploration possibilities in the north-western region of Botswana.

Having commenced production of copper and silver at its heartland in 2012, the company has been given the first green light by the government to increase production capabilities to around 50,000 tonnes of copper per annum, extending the site’s lifespan from 15 to 25 years if all three expansions go ahead.

The Australian-founded group, renamed Discovery Metals from Discovery Nickel Limited in 2006, also has important operations outside of Boseto in copper, manganese, gold and nickel.

A key ethos behind its continuing exploratory work is sustainability both in its treatment of people (employees and locals) and the environment, ensuring that existing and new developments deliver optimum national benefit while avoiding undue natural harm.

‘These are exciting times for Discovery Metals which will allow the development of our underground mining programme to progress’ – CEO, Bob Fulker 150

July 2014

MINING

Key Personnel

Jeremy Read Chairperson

Boseto Copper Project

Ribson Gabonowe Non-Executive Dir.

Going underground The Botswanan government granted approval for the first of three expansion projects at Boseto in April, giving the go ahead for the proposed commencement of the Zeta underground mine, which will produce around 1.5 million tonnes at 1.3 percent copper per annum.

The mine has ore reserves of roughly 7.3 million tonnes, also including significant reserves of silver.

In a company press release, CEO Bob Fulker

Russell Luxford Non-Executive Dir.

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DR

D com Sub Sa DTH a

W

Head Office: T: +27 14 573 3444 • F: +27 14 573 3555 • E: info@discoverydrilling.co.za Botswana: T: +26 7 261 5870 • F: +26 7 261 5775 • E: louw@discoverydrilling.co.bw

RILLING DYNAMICS DONE DEEPER

Discovery drilling is one of the leading diamond drilling mpanies in South Africa, drilling any where south of the ahara. Drilling from BQ to T6-146 size core. We also do and RC drilling and we manufacture our own drill rigs.

We are big enough to matter and small enough to care.

www.discoverydrilling.co.za

SUPPLIER PROFILE

DISCOVERY DRILLING CONTRACTORS

Established: 1999 Industry: We are proud to present Discovery Drilling Contractors as the complete solution for exploration drilling needs. Our service is solid, based on experience and quality of both management and field personnel, as well as rugged, safe and dependable drilling equipment.

Services: Discovery drilling is one of the leading diamond drilling companies in South Africa, drilling any where south of the Sub Sahara.

Drilling from BQ to T6-146 size core. We also do DTH and RC drilling and we manufacture our own drill rigs. We are big enough to matter and small enough to care.

Ongoing Projects: Keeping to our standards and maintaining momentum in development and delivery of excellent service is the key for a promising future. Although Discovery Drilling already is a sizeable drilling venture, it will not be allowed to slide into an oversized, clumsy entity. Our short to medium term planning is to expand drilling operations into sub-Saharan Africa.I, as the director of Discovery Drilling Contractors want to assure you of our professional service and loyalty towards your company.

Website: www.discoverydrilling.co.za

D I S C O V E R Y M E TA L S

MINING

said: “These are exciting times for Discovery Metals which will allow the development of our underground mining programme to progress and is consistent with the new overall strategic direction of the company to develop our underground mineral resources.�

There is also potential for two more underground mines (North-East Mango 2 and Zeta North-East) which will further bolster production, increase employment and bring greater benefits to local businesses and communities.

The ultimate aim is for the three underground sites to keep the 3.2 million tonnes per

Steel drums

Mine working

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D I S C O V E R Y M E TA L S

The Bosteo Plant at night

annum Boseto mineral concentrator running at maximum throughput and capacity.

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July 2014

Copper heartland In September 2012, the 100 percent-owned Boseto Copper Project was officially opened by the President of the Republic of Botswana, His Excellency Seretse Khama Ian Khama, accompanied by Vice President and Minister for Mines, Energy and Water Resources, Dr Ponatshego Kidikilwe.

MINIG GLOBAL

It is one of the country’s biggest producing sites, with 18 million tonnes of material mined in the six months to December 2013. In this period some 24,495 tonnes of concentrate was produced, containing 9,057 tonnes of copper and 327,062 ounces of silver.

April 2014 was a record-breaking month for copper production at Boseto, with the 2,011 tonnes produced its highest ever, beating the previous high marker of 1,915 seen in July 2013.

The base is situated on the ever-

‘Boseto... is one of the country’s biggest producing sites, with 18 million tonnes of material mined in the six months to December 2013’

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D I S C O V E R Y M E TA L S productive Kalahari copper belt, an area which the company has targeted for further exploration in the coming years.

At present Discovery Metals holds 18 prospecting licences covering 10,513 square kilometres in the Kalahari Copperbelt of northwest Botswana. The prospecting licences extend from 60 kilometres south-west of Maun through to the Namibian border, a distance of more than 280 kilometres.

Concentrate bags ready for shipment

Discoveries beyond copper Though the main focus of Discovery Metals is on Boseto, it also operates in

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www.onetrackengineering.com T: +267 686 4347 | F: +267 680 0760 | Cel: +267 76 805 700 E: info@onetrackengineering.com

Keeps your industry going

MINING

metals beyond copper and silver.

Staying in the Kalahari region, the company holds 17 prospecting licenses (15,000 sq km) as part of its manganese exploration work.

It has also carried out important preliminary exploration of Kraaipan gold in southern Bostwana, directly along strike from significant gold deposits in South Africa, including the well-known Kalgold deposit, which has over four million ounces of gold up to 150 metres underground.

Nickel is another area of interest for Discovery Metals, demonstrated by the Dikoloti Project, a joint venture with The Japan Oil, Gas and Metals National Corporation (JOGMEC) in the north east of Botswana.

The area in question covers 283 sq km and has four nickel-copper deposits with a combined historic resource of 182 million tonnes.

Sustainable ethos What will enable Discovery Metals to make the most of its ongoing and planned exploration and production work in Botswana and beyond is its sustainable mantra, incorporating both the environment and local people.

In 2012, the company published its first sustainability report, a detailed 11-page document outlining its efforts to create a sustainable and ethical operation.

On the environmental side it is committed to minimising harmful impacts in the short term by

Moving through the crushing circuit

‘Staying in the Kalahari region, the company holds 17 prospecting licenses (15,000 sq km) as part of its manganese exploration work’

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D I S C O V E R Y M E TA L S

Boseto Copper Project

Boseto crushing circuit

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deploying rigorous dust extraction methods, and in the long term by using diesel to power vehicles and generate electricity. Other areas such as local biodiversity and water use are monitored closely and involve consultation with stakeholders.

From a human perspective, the Boseto Project was set up without the displacement of any citizens as the site is 20 kilometres from the nearest settlement. Despite this, it has still offered communities blighted by high unemployment the opportunity to gain apprenticeships and work.

Within the company, staff are put through an intensive training programme which includes

MINING

Company Information INDUSTRY

Mining HEADQUARTERS

Gaborone FOUNDED

2003 (Discovery Metals named in 2006) KEY PEOPLE/ TITLES:

CEO, Bob Fulker EMPLOYEES

induction in computer skills, administrative processes, safety, risk management, archaeological finds, environment, equipment operation, process operational procedures, driving, technical aspects, and on the job training.

The company employs three expatriate and several local trainers and supports the programme by the use of consultants.

As more exploration and production opportunities spring up at Boseto and in other parts of Botswana, Discovery Metals looks well-placed to play a vital part in the country, maximising its undoubted minerals potential.

500 REVENUE

R500 million PRODUCTS/ SERVICES

Copper, silver, nickel, gold, manganese

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Vodacom Business Africa meets connectivity demand with innovative solutions The ICT subsidiary of the pan-African Vodacom Group is using its deep understanding of doing business on the continent to cater for the rapidly increasing challenges and needs of its customers by providing high quality SLA managed IPVPN MPLS services as well as security and unified communications Written by: Matthew Staff Produced by: Craig Daniels

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VODACOM BUSINESS AFRICA

‘Our reliable and wide PanAfrican network capability enables us to provide secure network connectivity across borders and at scale’

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V

odacom Business Africa continues to react to the ongoing demand for enhanced connectivity on the Continent through its dedication to providing innovative ICT solutions across a wider footprint than ever before.

The company’s primary objective is to offer total communications services to both multinationals and medium-sized enterprises, enabling customers to adapt into African markets and alleviating the technical strains that come from cross-country expansion.

This has been achieved through its innovative range of technical services, including IP-VPN MPLS connectivity, Software-as-a-Service (SaaS), M2M, the launch of new data centres, the optimisation of cloud computing, and the company’s renowned converged solutions. The

TECHNOLOGY

Servers are kept cool in the basement operations centre

expansion and development of which means that customer demands are met on a wider scale, while staying abreast of technology trends.

Douglas Craigie-Stevenson, Managing Director (MD), said: “The increased demand for connectivity and speed has challenged Vodacom to continue to be innovative in the solutions that we develop to meet our customer requirements, and to ensure that we keep our customers reliably connected, wherever they are.

“Our reliable and wide Pan-African network capability enables us to provide secure network connectivity across borders and at scale.”

Innovative solutions As a customer-centric and market-savvy company; Vodacom Business Africa monitors

24/7 Availability of our Customer Operations Centre to support all of our customers

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VODACOM BUSINESS AFRICA

Server bank

“Many African markets do not have traditional terrestrial infrastructure and governments can be forced to bypass fixed-line solutions in favour of mobile and fibre-optic broadband” – Douglas CraigieStevenson, MD 166

July 2014

trends and challenges to ensure it offers solutions that enable customers to not only be in line with industry requirements, but also future-proofed to take their business to the next level. The business also support Multi-national companies enter into Africa with a trusted partner.

“The technological infrastructure on the African continent is complex,” Craigie-Stevenson explained. “Many African markets do not have traditional terrestrial infrastructure and governments can be forced to bypass fixedline solutions in favour of mobile and fibre-optic broadband. This is what we fix.”

Subsequently, the demand for more advanced cloud-based services has led to new data centres being launched in both Nigeria and South Africa

TECHNOLOGY

in addition to existing ones, further enhancing the cloud capability. With the uptake of Machineto-machine (M2M) solutions; the company has grown it’s M2M portfolio to drive and pursue growth opportunities in new vertical markets including transportation, logistics, insurance, and financial services.

Craigie-Stevenson said: “The spread of communication services into vertical markets – specialised sectors such as healthcare, hospitality or education - requires tailor-made solutions to meet customer requirements. More and more we are seeing the increasing role of technology in driving growth in some of the highly-industrialised sectors such as mining.”

The company’s continually expanding range of convergence and M2M services is not only an industry benefit, but an industry must, given the rate of tech development across Africa, also making the speed of bringing new products to market equally important.

Recently, these introductions have comprised deployments in vehicle telematics; fleet management, electronic metering, asset tracking and remote operations to ensure the latest in advanced efficiencies and business productivity are being catered for in Africa.

Consistent quality The company’s global footprint allows it to overcome the terrestrial and regulatory challenges faced by many service providers on

Key Personnel

Douglas CraigieStevenson Group Managing Director Douglas CraigieStevenson has been the Group Managing Director for Vodacom Business Africa since 2013 and is accountable for strategic direction, revenue growth, business policy and operational planning and execution across the African fixed line OpCos based in 16 countries across the continent.

Douglas is a visionary leader who has a strong understanding of the global and African business landscape.

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VODACOM BUSINESS AFRICA the continent, its connectivity network spreading as far wide as 42 countries out of a possible 54.

This is supported by an on-the-ground presence in 16 countries as well as a 24-hour operational customer service operations centre which enables monitoring and tracking of network traffic to ensure all customers are confidently connected at all times.

Satellite hubs enforce this network structure of access mediums to enable customers to carry out business even in the remotest of geographies with underserved terrestrial infrastructure, making inter-branch connectivity across regions more manageable, Craigie-Stevenson explained: “Any multinational expanding into Africa needs to feel confident that it can establish reliable communications.

TECHNOLOGY

42 Number of countries where Vodacom’s network footprint provides reliable connectivity

Satellite hubs enforce the network structure

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Vodacom endeavours to empower businesses

“This provides businesses with a consistent experience and better control of communications, costs and security” – Douglas Craigie-Stevenson 170

July 2014

“The identification of a total communications service provider who can negotiate and navigate the regulatory and technological complexities can empower the business to focus on their core competencies and explore revenue opportunities.”

This is achieved by consolidating communications into one supplier, under one contract, and with one master service agreement, to help alleviate the stresses of cross-country

TECHNOLOGY

Making sure customers are in control

transactions. “This provides businesses with a consistent experience and better control of communications, costs and security,� the MD added.

Dedicated provider Complementing the role it plays in empowering businesses, the company has a similar ethos of care in its approach to Corporate Social Responsibility, driving technology to help people

The company offers better control of communications, costs and security

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“Pairing up our rich product set with our dedicated team of people, and making sure that our customers know that there’s ultimately only one provider they should go to will remain a key focus” – Douglas CraigieStevenson

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across regions.

This commitment is spread far and wide, epitomised by its work in Mozambique with ARK (Absolute Return for Kids), partnering with the Ministry of Healthy to trial SMS technology to improve adherence to antiretroviral treatment (ART) for people living with HIV/AIDS. The relationship with the Ministry of Health continues in the Democratic Republic of Congo (DRC) where it offers healthcare professionals free SMS technology to report on TB-vaccine stock levels in the combat against tuberculosis.

From a corporate standpoint, the same philosophy of care and pride in its community continues where Vodacom’s M-Pesa Empowerment Initiative (MWEI) is helping to develop SMEs being run by women by providing much needed microfinance credit access; an

TECHNOLOGY

Company Information INDUSTRY

ICT communications HEADQUARTERS

Johannesburg, South Africa FOUNDED

2008

initiative which has already aided thousands of women across 18 regions of Tanzania.

Vodacom Business Africa’s willingness to not only move with the times, but to keep ahead of the industry curve is what has set it apart throughout its development in Africa, and Craigie-Stevenson is confident that this trend will continue moving forward.

“We are excited about the journey that the flux in the telecoms industry will take us on, especially in Africa,” he said. “Pairing up our rich product set with our dedicated team of people, and making sure that our customers know that there’s ultimately only one provider they should go to will remain a key focus.

“We will continue to expand our product offering and solutions into the African market.”

EMPLOYEES

Not disclosed REVENUE

Not disclosed PRODUCTS/ SERVICES

ICT solutions, Cloud computing, hosted services, MPLS connectivity, Total Communications

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Likusasa’s

innovation and diversity is connecting Africa Adaptability and R&D investment has seen the company transform from a general contractor to one that offers a comprehensive range of specialist services across several sectors to key clients continent-wide Written by: Joel Levy Produced by: Oliver Bishop

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LIKUSASA

Our Zambia office and our headquarters in Mauritius

“We work with the bigger operators because we can offer them significant capacity to deploy highclass networks” – Gary Staunton, Group CEO

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July 2014

L

ikusasa has both leveraged and helped enable the huge growth in Africa’s infrastructure and connectivity over the last two decades, thereby developing into a diversified and respected specialist.

The company offers a comprehensive range of services and products within the telecommunications, energy and infrastructure sectors to diverse clients in infrastructure, mining, ICT, transport and telecommunications.

Group CEO Gary Staunton said: “We are effectively divided into three focus areas. Our projects group implements projects throughout Africa, our solutions group engineers and designs solution and has a very wide partner network, we also have our services group which provides expertise such as consultancy and audits for clients.”

TECHNOLOGY

Likusasa, which translated means “the future is now”, was established in 1995 in South Africa as a general contracting division of Kentz. Over the remainder of the decade it focused on infrastructure before becoming primarily involved in telecommunications and power.

The Mauritius-based company has since evolved rapidly in telecommunications, expanding into West Africa in the early 2000s, particularly Nigeria, where it grew substantially alongside the evolving GSM market.

In 2007, the management team bought out of Kentz, and broadened Likusasa’s reach into the SADC region. Today it is a diverse, independent project management, engineering and contracting group with the ability to undertake projects in Africa’s most challenging locations.

Connecting Africa With an exceptional track record in telecommunications project execution, Likusasa offers a wide range of project management, technical and construction services to GSM and fixed line network operators.

During the company’s time in Africa, connectivity has grown immensely, Staunton knows Likusasa has an important role to play by finding innovative ways to address the current gaps. In addition to business and data, much of the company’s communications growth in the coming years will come from the connection of “the last billion” in remote rural areas to GSM

Key Personnel

Gary Staunton Group CEO Born in Northern Ireland, he graduated from the University of Manchester (UMIST) in 1988 with a Mechanical Engineering BSc. Hons.

In 1990 Gary emigrated to South Africa and has enjoyed an exciting career that has taken him to Africa, the Middle East, South America, China and Russia. In 1998 he became a chartered mechanical engineer (UK) and in 2001 successfully completed his MBA. He has worked for KBR, Kentz Group, Rasgas and Likusasa.

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LIKUSASA

For existing facilities in need of an upgrade, Likusasa offers a comprehensive audit

networks.

“About 14 years ago there was no GSM in Africa, in the last 10 years we’ve gone from being unable to make a call to having 600 million plus subscribers. GSM technology has developed considerably in recent years and as a result there’s been an interesting focus on data and media services, LTE, 3G and the like. That will continue to grow,” he said.

The backhaul side of Likusasa’s business is also developing alongside the continent’s fibreoptic connectivity drive. New sea cables installed along the East and West-African coasts enable higher-speed and higher-capacity data links with

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TECHNOLOGY

the rest of the world.

“We’ve have been primarily focused on rural solutions which are dependent on satellite backhaul and for the next few years we will see a lot of the focus shifting to developing solutions for rural communications - less about the business, more about the coverage,” Staunton said.

In a competitor-driven industry, Likusasa’s solutions must make attractive investments for operators. Therefore it focuses on developing low-cost methods, both in construction and ongoing operations, appropriate to serving small communities.

In the coming months, the company will be involved in data centre projects in West Africa, and rural communications in the DRC and Madagascar.

In attracting high-profile clients, including the likes of Vodacom, Likusasa’s size and geographical reach has been advantageous, with customers recognising its ability to deliver projects quickly and reliably in all locations. They also appreciate the turnkey, one-stop-shop interface the company provides, not having to deal with several smaller contractors.

Staunton said: “We work with the bigger operators because we can offer them significant capacity to deploy high-class networks. We are competitive in cost terms because we tend to do all work in-house and have a very good supply chain out of Asia, so overall we have a very competitive service offering. We have the

Key Personnel

Jan Muller Group COO

Desmond Lange Group CFO Likusasa accepts their responsibility to their stakeholders and has appointed a competent management team supported by documented operational and financial policies and procedures that promote consistency and containment of risk.

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LIKUSASA

“We’re currently busy developing in-house a range of modular equipment rooms which would typically be used for data centres and cable landing stations. [...] We see a lot of opportunities to deploy these solutions” – Gerry Shields, MD

Telecoms site with a Solar Powered system we designed & built for Vodacom Lesotho 180

July 2014

capacity to reduce interfaces and meet some demanding delivery schedules.”

Innovation Meeting demand and minimising costs in a fastmoving industry requires innovation, and so Likusasa invests significantly in Research and Development to respond to the market’s changing requirements.

Managing Director Gerry Shields said: “We’re currently busy developing a range of innovative modular equipment rooms. These would typically be used for data centres and cable landing stations. The units are designed for rapid deployment and provide a high level of quality at an affordable price. We see a lot of opportunities to deploy these solutions.”

Staunton added: “Eight or nine years ago an average site would have cost between $300,000 and $500,000. Today, we’re rolling out sites in very remote areas for less than $70,000. Product development is a response to what our clients are looking for: they want us to design, develop, manufacture and put into commercial operation innovative solutions that serve very specific needs.

“This year we are focusing on modular data centres, camp solutions for accommodation, pioneering works on oil and gas facilities, power solutions and these rural sites that allow very lowcost communications coverage.”

TECHNOLOGY

Likusasa offers design and build services for network core switches, data centres and server rooms

Energy and infrastructure Elsewhere in the business, in the energy sector, Likusasa through it’s subsidiary “Lead EPC”, is extensively involved in renewables, providing engineering and construction services for solar PV and hybrid energy systems, power distribution networks, and electrical and instrumentation installations.

In South Africa, the company is working on a collaborative solar concentration plant project in the Northern Cape, while another projects division is focusing on Photovoltaic solar projects in Free State and Northern Cape regions.

In infrastructure, Likusasa offers project and construction management services as well as affordable turnkey project execution capabilities.

Its services in this sector include design and build for IT facilities including network core switches, cable landing stations, data centres, and equipment rooms.

Key Personnel

Gerry Shields Managing Director, South Africa Gerry graduated from the University of Dublin. He is registered as a professional engineer in South Africa and a Chartered Engineer in the UK.

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Left to right: Gary Staunton, Jan Muller, Desmond Lange, Gerard Shields

“Our focus for the next five years will be multi-sectoral diversification[…]

We will take a lot of the things we do, technologies we have developed and move them across sectors” – Gary Staunton

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Alongside the modular offering, it also excels at constructed buildings and all related mechanical, electrical and specialised services.

This year, attentions turn to rail projects and automation, as well as large oil and gas developments in northern Mozambique.

Staff Staff levels rise and fall alongside such construction projects with the team currently standing at about 550. These projects offer employment opportunities for locals, as well as comprehensive training programmes to get them up to speed with its high standards, particularly in health and safety.

Talented individuals who have received the training are given opportunities to work on further Likusasa projects regionally and internationally.

TECHNOLOGY

Future growth As the company looks to the future, and the chance to build on its success, it will further invest in value-adding partnerships, using its extensive African business platform to promote the partnership.

It also anticipates opportunities in mining, in the North-Western Copperbelt in Zambia, oil and gas opportunities in southern Tanzania and northern Mozambique and the associated infrastructure projects from the west and east coasts connecting landlocked countries in SubSaharan Africa.

It expects infrastructure demand to increase in Nigeria, Mozmabique and Zambia, with the investment that comes to these booming nations.

“These are all areas of considerable economic activity for us,” said Staunton. Our focus for the next five years will be multi-sectoral diversification, including maintenance services.

We will take a lot of the services we offer, technologies we have developed and integrate them across sectors.

“Recently we have focused on telecoms and power; but there is still much work to done in the power sector as well as the transport and infrastructure sectors, in order to provide solutions for the Liquefied Natural Gas and Copperbelt projects.

“If we can look back in five years’ time and say we have succeeded in penetrating those markets, we will consider that to be quite a success story.”

Company Information INDUSTRY

Energy, communication, infrastructure HEADQUARTERS

Black River, Mauritius FOUNDED

1995 EMPLOYEES

550 REVENUE

Not disclosed PRODUCTS/ SERVICES

Project management, technical and construction services

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Treger Plastics recapitalisation takes it to the cutting edge The Zimbabwean manufacturer has long been a domestic leader, but a $3.5 million investment in the latest machinery will boost its range and push it into new international markets Written by: Joel Levy Produced by: Kiron Chavda

185

TREGER PLASTICS

“Treger wanted to bring in modern, world class technology that allows it to compete with the outside world” – Craig Lowe, General Manager

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July 2014

Z

imbabwean manufacturer Treger Plastics is in the midst of a complete recapitalisation, the culmination of which in August will see the company push into new territories with the aid of significantly upgraded technical capabilities.

Bulawayo-based Treger Products headhunted new General Manager Craig Lowe, who was working as Chief Operating Officer for South African packaging company Astrapak, to spearhead the $3.5m investment strategy in its plastics division and modernise processes across its manufacturing facilities.

M A N U FA C T U R I N G

Vision Statement Our vision is to become the leading manufacturer for our range of quality products and to build our brands so that they are known and respected throughout the Comesa/SADC region.

Our vision is to be known for reliability, flexibility, responsiveness, innovative products and services.

With new optimised heavy equipment from Germany, alongside a parallel IT upgrade that will drive down administrative costs, Lowe believes Treger Plastics now has the tools to effectively compete with international rivals and ultimately export its quality products to additional states.

He said: “Treger wanted to bring in modern, world class technology that allows it to compete with the outside world; that’s really the bottom line. It had fallen behind the curve quite a bit, and the duty was not fully implemented for imports that were starting to get taken up by South Africa

We will achieve this vision by working together in an environment of trust, co-operation and mutual respect.

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TREGER PLASTICS

Treger brands showcased

and other surrounding countries including India.�

That the company’s technology was becoming dated meant such competitors had been able to produce goods faster and more cheaply than Treger, consequently limiting its exports to Zambia and Botswana.

Conduit pipe

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July 2014

Unrivalled products With this investment, Treger Plastics will combine the expertise of its staff with the best tools for the job, and build upon its reputation as a producer

M A N U FA C T U R I N G D I G I TA L

of market-leading products, which has been solidified during a long history in Zimbabwe.

A comprehensive range of the latest high-end machinery from Germany, Italy and China will take production to the next level, and allow the company to enter new lines including high-end sheeting.

The multi-million-dollar investments include a three-layer excluder, an eight-colour gearless printer for high-quality labelling, a brand new recycler to tap into ongoing sustainability

“We’ve partnered with our equipment suppliers, and all staff will be trained in the country of the equipment’s origin” – Craig Lowe

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5 layer POD film coextrusion line A technology definitely here to stay Macchi S.p.A. • 21040 Venegono Inferiore (VA) Italy21040 Venegono Inferiore (VA) Italy via Papa Paolo VI, 5 • +39 0331 827 717 • macchi@macchi.it • www.macchi.it

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TREGER PLASTICS

M A N U FA C T U R I N G

initiatives, several high-speed bag makers, and a poly-part machine to gain ground in the anticipated Zimbabwean infrastructure boom by providing parts for irrigation and similar activities.

Importantly, the Treger Plastics staff will also receive the best possible training in the use of their new equipment, ensuring a fast and efficient return on the investment.

Lowe said: “We’ve partnered with our equipment suppliers, and all staff will be trained in the country of the equipment’s origin. When we buy from Germany the staff will be trained by on-site specialist engineers in Germany, and the same for Italy and China.”

Treger plastic bag

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191

Treger Plastic’s bags on display

“We are giving Zimbabwe world-class manufacturing on its doorstep” – Craig Lowe

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July 2014

The company has always prided itself on bringing international standards to its homenation, providing not just domestically but internationally accredited plastic products that its Zimbabwean rivals cannot match.

This has allowed it to dominate the bread bag and carrier bag markets, (both virgin and recycled), and excel in high-density HDPE pipes, PVC pipes and Rollfilm.

“There are not many competitors that can produce a bread bag or carrier bag at the quality that the market requires, so in selected markets we provide the customer with what they could get from anywhere in the world,” said Lowe.

M A N U FA C T U R I N G

Treger Products As a division of Treger Products, Africa’s largest manufacturer of household, cookware and appliances, access to the parent company’s purchasing division facilitates good lines of credit, allowing the plastics arm to purchase necessary raw materials and operate the financial end of the business even more effectively.

It also benefits from access to a wellestablished supply chain via Treger Products’ construction and steel businesses, as well as its own transport division. Long-standing relationships with suppliers in South Africa have been complemented by Lowe’s own contacts, and once orders are placed, the transport company swiftly takes the materials across the border, ensuring a seamless operation.

Lowe said: “We are probably the longestestablished firm in the market, and we’ve been doing it for many years so you’ve got staff that are well-trained, and also through our buying arm we get exposure to what the rest of the world is doing, which has helped us to bring in the right equipment to ensure we continue to give a world class benefit.

“We are the largest in the country and we have companies in South Africa bringing in expertise. We are giving Zimbabwe world class manufacturing on its doorstep.”

This Zimbabwean success story also aims to give back in other ways, and the entire Treger Goup endeavours to operate in a manner that not

Rollfilm product

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C&C FLEXO from Milan, is a manufacturer steeped in the European tradition of making the very best flexo presses to meet a customer’s requirement.

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The company makes a wide range of flexo models from narrow to wide web, in line units, U.V. applications and also indirect gravure.

“Today, the flexo process is equal to and frankly has finally managed to reach and surpass gravure in most areas and this is thanks to higher definition plates. We have customers printing at 78 lines per cm, which is gravure quality.”

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TREGER PLASTICS

M A N U FA C T U R I N G

only benefits itself, but the country too.

Lowe explained: “Our mission is to be socially responsible. Anything we can source locally, for example inks, we do. We want to put money into Zimbabwe. Coupled with that we take on staff with social issues, and are also driving into recycling; that’s one way to keep the carbon footprint down and at the same time provide the populous with a cheap bag.”

Treger Plastic’s hosepipe product

Long-term vision The General Manager also foresees more money coming into the country, and a bright future for

At Zimbabwe International Trade Fair w w w. t r e g e r p r o d u c t s . c o . z w

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TREGER PLASTICS

Treger Plastics is a division of Treger Products, Africa’s largest manufacturer of household, cookware and appliances

“I think those that take a long-term view and hang in through the hard times will succeed.

Once the political issues are ironed out in the future, the potential will be exercised” – Craig Lowe

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business in Zimbabwe as it bounces back from a challenging year marred by limited credit access, with a relaxation of indigenisation policy set to spur on business and provide opportunities for far-sighted companies like Treger that have invested for the future in a difficult current climate.

Lowe said: “I think those that take a long-term view and hang in through the hard times will succeed. Once the political issues are ironed out in the future, the potential will be exercised.

“The Tregers have been around for so many years now and they’ve seen it come and go and they are very confident that things are going to get better, so they are forging ahead with this investment at great expense to themselves.”

M A N U FA C T U R I N G

Company Information INDUSTRY

Plastics manufacturing HEADQUARTERS

Bulawayo FOUNDED

Not disclosed EMPLOYEES

Not disclosed REVENUE

The completion in August of the recapitalisation will represent the conclusion of Lowe’s short-term strategy to bring Treger Plastics to the forefront as a modern, efficient manufacturer, more than justifying this considerable outlay and paving the way for the company to bring more products to more customers.

But it is in fact only the beginning of a longer game. Lowe concluded: “My vision in the medium-term is to solidify our position as the premier plastics supplier in the region, and the longer-term vision for three to five years is to take it beyond the borders because we’ve bought the right equipment to do this and provide a premium offering at the right price.”

Not disclosed PRODUCTS/ SERVICES

Virgin and recycled bags and pouches, Rollfilm, PVC Compound, Hose pipes, conduit pipes, poly pipes

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Kaztec Engineering’s Snake Island project is a first for Africa This wholly indigneous engineering company is focusing more and more on offshore works and providing a real boost to Nigeria’s oil and gas sector Written by: Joseph Wilkes Produced by: Oliver Bishop

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Work in-progress

Commencement of clearing 200

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Kaztec Engineering is working fast to complete a 35-hectare fabrication yard, a move which will create 20,000 jobs and push the company closer to the goal of becoming leader in the West African sub-region.

The fabrication yard on Snake Island in Lagos, Nigeria, will bring immense benefits to the oil and gas sector in the surrounding region, including in the area of wealth and job creation, according to Nigeria’s Minister for Transportation, Idris Umar.

The 35-hectare fabrication yard has been reclaimed and is in use for steel storage and erection, said Onochie Anyaoku, Chief Consultant

SECTOR

for Kaztec Engineering Limited.

More than 2,000 metric tons of steel has been delivered to site and deck fabrication for two awarded projects is ongoing.

The workshop and warehouse structures are being erected in parallel with this, the foundations of which have already been poured and cured.

The sheet pile quay wall has been completed as has the dredging of the fabrication yard’s barge mooring basin.

Equipment such as gantry cranes, state of the art 200-tonne erection crawler cranes and selfpropelled modular trailers (SPMT) have already

‘The fabrication yard on Snake Island in Lagos, Nigeria, will bring immense benefits to the oil and gas sector in the surrounding region’ – Kaztec

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REDGING

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HANSON DREDGING & MARINE SERVICES

....MORE THAN Industry: Dredging & Marine construction Services: Cadastral, Pipeline Survey, Landscaping, Survey works on Engineering, Piling works on land and water, Drain Construction, Culvert Design.

Ongoing Projects: Badagry road project for Chinese Construction ....MORE THAN DREDGING Engineering Company Reclamation and stock piling at Snake Island Ilashe Kingdom for Adax petroleum and Kaztec Engineering.

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Keys to success: We sponsor local researches which our engineers, soil and marine experts spear head. Having our staff from different related branches is our key to being expeditious and fluent in the knowledge of our mĂŠtier, it is also the reason why HANSON is equally competent in other non related area(s) to dredging.

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KAZTEC ENGINEERING

ENERGY

been delivered or are in the process of being cleared.

Bringing benefits Technical Director for Kaztec Engineering Limited, Adebanji Babarinde, said: “We are very proud because it (Snake Island project) will bring a lot of benefits to the local area.

“We have engaged quite a lot of people in the village in site planning, site operations and equipment installation, which is going to have an effect on the people around.

“There are jobs for them to do and I believe that will continue, you cannot quantify the effect of that on the families, so it is quite welcome there.”

The Snake Island Project is believed to be a $1

Rock crushing equipment

Dredger at work at Snake Island w w w. k a z t e c - e n g . c o m

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Grand Marine Oil and Gas (NIG) Limited is a company in the marketing of petroleum products and provision of marine support services in the downstream sector of the Oil and gas industry.

SERVICES Vessel Owners (Oil Tankers) Provision of Barges and Tugboats Provision of Jetty facilities Marine security services Shoreline protection services Bunker and Fresh water supplies Ship chandelling and Manning services Provision of House boats Marine consultancy services

C O N TA C T U S www.gramog.org info@gramog.org +234 (0) 808 0770 004

+234 () 803 317 3144 17c, Marine Road, Apapa, Lagos, Nigeria

GRAND MARINE OIL AND GAS

(NIG) LTD

KAZTEC ENGINEERING

ENERGY

billion plus project to convert unused swamp land into a massive engineering facility.

This facility, the likes of which has never been seen in Africa, will service the oil and gas sector and will boost rig construction and the industry involved with other such complex offshore structures and equipment in the region.

The project should be completed by 2016 and will include a leading training academy.

Rising high Kaztec, renowned for being a wholly indigenous company, will see its employee count increase from roughly 400 to about 5,000 thanks to the site.

The ambition of the company is to become the number one indigenous EPIC contractor in

SUPPLIER PROFILE

Key Personnel

Engr. Onochie Anyaoku Chief Consultant Adebanji Babarinde Technical Director

GRAND MARINE OIL AND GAS

Industry: We are in the business of maritime logistics, facilities provision as well as petroleum products trading and exploration.

Services: We will provide and maintain exceptional quality products and services in our quest to satisfy our esteemed customers.

Ongoing Projects: Our strategic intent is to be among the top five maritime services provider and petroleum products marketing company in Sub Sahara Africa by 2020.

Management: Chairman, Oladipo Ogunwemimo Director, Mrs O. Ogunwemimo Director, Babatunde Balogun, Director, Mike Egbayelo Website: www.gramog.org

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Transforming Ideas

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Our aim is to help our clients meet their needs by adding value through technical excellence, efficient organization and personal services.

Lagos: 14, JOY Avenue off Osolo Way, Ajao Estate. P.O. Box 7087 Ikeja, Lagos State.

Tel: +234-803-328-9873 • Fax: +234-1-870-3622 Abuja: 21 Parakou Crescent, Off Aminu Kano Crescent, Wuse 2, Abuja Tel: +234-812-7344-798 • Email: enquiries@gulfconltd.com

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KAZTEC ENGINEERING

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Nigeria.

Anyaoku said: “In five years’ time, Kaztec will be the number one indigenous EPIC contractor in Nigeria. This will be achieved by helping our clients lower their capital costs and by continuing to put up sterling performances in the projects that we are involved with now.”

Babarinde added: “We should be leader in the West African region in the kind of business that we are doing, thanks to our fabrication yard.

“That should place us as number one in the West African sub-region, because of the plan and the way that we have started it. I think we should be the leader in fabrication and for the very heavy offshore facilities in the next five years.”

He added: “We will focus on training, update our assets and our expertise and develop our human capacity.”

Poised to capitalise Kaztec is also working on a large project 60 km south off the shore of Calabar for Addax Petroleum, installing subsea pipelines.

This has taken three years so far and involves fabrication, installation of pipeline and other subsea facilities and platforms commissioning of facilities.

Anyaoku said: “It is quite a big step for the company, before we started this project our concentration was on the onshore works, but this project has taken us to offshore installations and it is the biggest project that we have worked on and

Main Frame

Focus on training

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KAZTEC ENGINEERING

CASPIAN PACIFIC

Oil and Gas Services Marine Services & Offshore Logistics Civil Works, Scaffolding and Joining

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KAZTEC ENGINEERING

ENERGY

we are still working on it.”

He added: “The big change now in Nigeria is seeing oil companies move away from the onshore shallow water to deep offshore. Kaztec is preparing to take advantage of every opportunity that will be available by way of the experience, assets and manpower that we are putting together.”

Chrome Group Kaztec is part of Nigeria’s multibillion-dollar Chrome Group. Babarinde said that the Group and its sister companies provide a network of resources and services.

By combining the core competencies of those companies it allows Kaztec to provide a more comprehensive approach in both the tender and execution phase of EPIC projects.

Now Kaztec is following a current trend which is

Safety First

Working together

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K A Z INDUSTRIAL T E C E N G I LIMITED NEERING SARO AGRO QUALITY & SERVICE

Technical Manpower Supply QA/QC Services NDT Services ISO Consultancy Leading to Certification in ISO (9001:2008,14001:2004, OHSAS 18001:2007, 27001:2005) SPLIT CASING PUMPS FROM KIRLOSKAR

CAPRARI SUBMERSIBLE PUMPS PUMPING POWER

CAPRARI SEWERAGE PUMPS

Training of Internal Auditors for Management System in {ISO 9001:2008(QMS ), 14001:2004(EMS), OHSAS 18001:2007, ISO 27001:2005} Lifting Equipment & Accesories Inspection

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LUSAKA Plot No. 5284 Buyantanshi Road P.O Box 35168, Lusaka, Zambia.

Tel: 241477, 845675, 0965000051, Fax: (260) (2 (211) 846224, 846225

KITWE Plot No. 4013 Mutentemuko Road Heavy Industrial Area, Kitwe - Zambia Tel : (260) (212) 210793/94 Fax: (260) (212) 210795

E Mail: saro@saroagri.co.zm

E mail: info-kitwe@saroagri.co.zm

Engineered

to D e l i v e r

Corrosion and Thickness Surveys E: tonyendt@yahoo.com, md.abel.t@gmail.com T: +2348061679607, +2349095636190, +23407061145141

Â

Your Reliable Partner for OEM Quality Spare Parts

TWINCO PTE LTD

No 3 Loyang Way 4, SINGAPORE 506956 Tel: +65 65429618 Fax: +65 65427595 Email: sales@twinco.com.sg Website: http://www.twinco.com.sg

We provide excellent service with integrity and enthusiasm.

We are a company experienced and respected in logistics and procurement of materials and tools.

Delivering first class services in logistics, construction and supply of quality materials in various capacity at competitive prices to our clients all over Nigeria.

1 8 A A d e k i t a n S t r e e t o f f Pa l m A v e n u e , M u s h i n , L a go s , N i ge r i a + 2 3 4 8 0 3 7 2 4 7 1 0 0 + 2 3 4 8 0 7 2 1 2 0 4 4 7 l e n c i l n i ge r i a @ ya h o o . c o m

KAZTEC ENGINEERING

ENERGY

seeing the utilisation of purpose-built dynamically positioned offshore diving and construction vessels.

The requirement of these is becoming stricter due to the minimised risk of damage to subsea assets. “Ownership or long-term commitment of such vessels could better position Kaztec for future projects,� said Babarinde.

Kaztec has a pipelay barge called the Ekulo Cheyenne and a towing, anchor handling and utility tugs called the Ekulo Spirit and Ekulo Explorer which are designed to meet offshore anchor handling and vessel tow challenges safely

Compactor at work

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Pre-casting of sub-assembly foundation

Land survey

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and efficiently.

The company also owns an accommodation vessel, the Ekulo Tornado, which has a divesupport capability.

The Tornado, a four-point mooring dive support vessel, has accommodation for 83 persons in fully air-conditioned cabins, clear 350m2 deck space (Shelter deck space 230m2) complete with 19 tonnes deck crane and a moon pool making it an ideal platform for maintenance and diving/ ROV support operations.

These are made in places such as China and the UK and are global industry-standard.

“Our assets are quite fit-for purpose,” said Babarinde. “We have been using the DLB (Ekulo Cheyenne) for offshore pipe laying, lifting and installation of decks and platforms offshore and is quite suitable for most of the jobs we

ENERGY

Company Information INDUSTRY

Engineering HEADQUARTERS

Abuja FCT, Nigeria FOUNDED

2005 Compactor at work EMPLOYEES

are handling, and I think that presents us with a unique and competitive advantage over some of our competitors.”

About 400 REVENUE

Undisclosed

Nigerian to the core A major area of difference that Babarinde and Anyaoku emphasised is that Kaztec is a 100 percent indigenous company, conducted and owned by Nigerians.

Another is the company’s passion for Health and Safety. It has a good record with numerous certificates of commendation.

Kaztec also likes to give opportunities to its local staff.

Babarinde said: We do not relegate them to the background, we give a lot of responsibilities to them. I think that is quite significant when you compare with other companies.”

PRODUCTS/ SERVICES

Offshore and onshore engineering works

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UTi Zimbabwe leads the way in Zimbabwe The Zimbabwean branch of supply chain solutions giant UTi has risen to the top in the country based on its global network, commitment to staff excellence and unrivalled customer service Written by: Joel Levy Produced by: Dennis Morales

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T

UTi has 313 offices and 245 logistics centres across 59 countries

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he Zimbabwean arm of supply chain giant UTi Worldwide has gone from strength to strength in the country, leveraging its parent company’s global network to excellent effect to provide an unrivalled set of services to its clients.

Since entering the region in 1980, the company has weathered political and economic unrest to establish itself at the top of Zimbabwean supply chain solutions, providing quality services to clients in the mining and energy, retail, hitech/electronics and pharmaceutical sectors, amongst others, delivering to all major continents worldwide.

Air, road, rail and sea freight forwarding, contract logistics, distribution, customs brokerage, managed transportation services, supply chain analysis, warehousing and consulting are the company’s core services, much appreciated by such high-profile clients as Mimosa Mining and the multinational telecoms group Econet Wireless.

UTi is also a successful exporter of tobacco and cotton on behalf of its Zimbabwean clients.

Headquartered in the capital Harare, where it also has a 6,000 square metre-warehouse, the company has further branches in all major Zimbabwean cities and ports including Bulawayo, Mutare, Beitbridge, Chirundu and Nyamapanda, putting together a strong network that mirrors the approach implemented on a global scale by its parent company.

S U P P LY C H A I N

Moving contents inside the warehouse

UTi Worldwide Proud of the success to-date, Regional Consultant for International Trade and Custom, Timothy Nyanzira, believes access to UTi Worldwide’s network has been crucial to its success in Zimbabwe.

“One of our major strengths is our global existence, our network around the whole world,” he said. “That is something we have over some of the small players who only exist in Zimbabwe and whose contractual network arrangement with other countries does not necessarily work.”

With 313 offices and 245 logistics centres in 59 countries, the parent company develops and implements client-centric, global solutions for international companies with unique supply chain requirements.

“One of our major strengths is our global existence, our network around the whole world” – Timothy Nyanzira, Regional Consultant for International Trade and Custom

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UTI ZIMBABWE

Two employees load a truck

By integrating IT platforms and developing a UTi-client team approach to the planning and implementation process, its supply chain solutions maximise efficiencies and costeffectiveness.

By the same token, Zimbabwe is a key location for the worldwide group, and an important part of its African operations, bordering the similarly important South African region.

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Skilled workforce Equally important to UTi Zimbabwe becoming the country’s market leader in freight forwarding is the input of its 86-strong workforce, as well as its own efforts to continuously develop their considerable talents, both of which Nyanzira believes gives them the edge over rival firms.

S U P P LY C H A I N

Highly skilled workforce

He explained: “Our staff competence and skills I’d say is another major competitive advantage we have over other players. What we do besides the attributes or training those individuals have externally.

“Every month there is online training for all our staff to make sure they all remain up to speed in terms of the global trends that are taking place, and also to equip them with new skills to be able to assist or handle any business or any type of transaction.”

IT Investment A recent major $250m investment from UTi Worldwide in the form of a new IT system, Oneview, will greatly benefit the Zimbabwean branch’s employees and customers alike,

86 Number of workers employed in freight forwarding

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UTi Sun Couriers van

improving efficiency and providing instant access to important information.

Nyanzira said: “This is a huge investment that the shareholders have undertaken the world over, and one of the advantages of the system is that it will make sure that all the information for a particular client is readily available.

“The customers themselves will also have visibility; just with a click of a button they will be able to tell where their shipment is, and all the billing information will be available too. It will improve efficiencies and focus a lot on the customer.”

This customer focus is a priority for UTi

1921

Ignazio Messina & C.

THE ITALIAN LINE

1994

Ignazio Messina & C. Pty Ltd

SHIPPING AGENCY IN SOUTH AFRICA

THE ONLY INDEPENDENT RO-RO CONTAINER SERVICE IN THE TRADE WITH OWN CONNECTING SERVICES THROUGHOUT THE MEDITERRANEAN For rates, bookings & enquiries: Jhb: 011 881 9500 Dbn: 031 365 5200 Cpt: 021 418 4848 Maputo: I.Messina Mocambique Limitada + 258 21 300020/35/37

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S U P P LY C H A I N

Checking placement of product in warehouse

throughout its dealings with clients. The company is committed to maintaining excellent communications throughout its processes and ensuring that all needs are met and any issues are addressed efficiently.

Nyanzira explained: “We are an open-door type of organisation where the customer relationships are managed from operator right through to the manager. Every manager has a target of actually meeting and discussing with five customers every week to ensure the right level of service and that we are delivering on our promises to the customers.

“If there are any concerns, they are addressed immediately before they grow bigger. And all our supervisors and operators interface with customers, often on a daily basis, over

“All our supervisors and operators interface with customers, often on a daily basis, over the phones, meetings and through email communication” – Timothy Nyanzira

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UTi truck

the phones, meetings and through email communication.”

UTi Office

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CSR Having enjoyed success in Zimbabwe itself, UTi is committed to sharing this success with the local communities, taking an active role in the company’s worldwide corporate social responsibility strategy, ‘Delivering Better Live’.

Recent programmes have included the construction of a new hospital in the Goromonzi district, already completed and commissioned, and a school in Tarua, close to Harare, is currently under construction.

Zimbabwean prospects UTi’s strong performance in Zimbabwe is set to be further bolstered in the coming years by a strengthening of government policy.

S U P P LY C H A I N

Nyanzira sees some positive economic growth, and made clear that more robust improvement is expected in the coming years as the government moves to encourage overseas investment and take full advantage of the nation’s untapped mineral wealth.

“The government is actually trying to change some policies and shift in terms of indigenisation laws because they have seen that it is currently not working at all,” he said. They have taken a soft stance and now the ministry responsible for that legislation is having a sector-by-sector stakeholder discussion to try and find the best way forward.

“Because of this softer stance, I’d like to believe that they will come up with a blueprint to attract further direct foreign investment and other forms of investment.”

On the back of this, UTi can expect an even brighter future, and the growth brought by foreign investment will be complemented by that of company shareholders in the form of serious acquisitions that Nyanzira believes will add to the Group’s existing strengths.

He concluded: “I would like to think that we will have growth of about 20-25 percent within the next five years because what I see happening is a lot of changes in terms of the policies in the country and that will stimulate and attract further investment.

“We have the people, the resources and the infrastructure to attract this investment.”

Company Information INDUSTRY

Freight forwarding HEADQUARTERS

Harare FOUNDED

1980 EMPLOYEES

86 REVENUE

Not disclosed PRODUCTS/ SERVICES

Air, road, rail and sea freight forwarding, contract logistics, distribution, customs brokerage, managed transportation services, supply chain analysis, warehousing, consulting

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