African Business Review – November 2015

November 2015 • www.africanbusinessreview.co.za

The most innovative

African economies Sustainable Healthcare insurance in South Africa

Nielsen Maps Nigeria’s consumer economy

SPECIAL REPORT:

ATUABO FREE PORT A major boost to the Ghanaian economy

EDITOR’S COMMENT

The Power of Technology H E L L O A N D W E L C O M E T O the

November issue of African Business Review, Our two main front of book features this month chart the incredible effect that technology is having on the continent. We interview Nielsen’s West Africa Managing Director Lampe Omoyele who discusses his company’s role in delivering the world’s largest retailer poll in Nigeria. We also examine the work of Fico and AfroCentric; two companies that have collaborated to produce an innovative insurance fraud detection tool ready to change the face of the South African healthcare market forever.

This month’s cover story on Atuabo Free Port explores what will come to be a significant sea-port serving West Africa’s ever-growing oil and gas industry. Our Top 10 this month will give readers the low-down on the continent’s most innovative economic environments.

Enjoy the issue!

Nye Longman Editor nye.longman@wdmgroup.com 3

CONTENTS

Features

6

FINANCE Pioneering Sustainable

Healthcare Insurance Across South Africa TECHNOLOGY

Nielsen Charting the Growth of Nigeria’s Consumer Economy

16 12

TOP 10 Most Innovative African Economies

Company Profiles Atuabo Free Port A major boost to the Ghanaian economy

64

26

36 British American Tobacco Bringing international standards to Southern African markets

Civil Aviation Authority of Uganda CAA: Putting Uganda on the map

48

Airports Council International ACI Africa 5

FINANCE

Pioneering Sustainable Healthcare Insurance Across South Africa FICO and AfroCentric have partnered together to produce a ground-breaking fraud management system which is set to revolutionise the country’s healthcare insurance ecosystem.

W r i t t e n b y N Y E LO N G M A N

6

November 2015

7

FINANCE AFROCENTRIC, A DIVERSIFIED healthcare investor, operating through its eHealth subsidiary, Helios IT Systems, has teamed up with global analytics company Fico in order to produce a never before seen Insurance Fraud Manager (IFM) for the South African market. The introduction of first world technology to an emerging market such as South Africa has the potential to instigate a massive shift in behaviour, driven by greater transparency and integrity.

The South African Market According to KPMG data, healthcare fraud accounts for between 10 and

20 percent of gross healthcare claim payments globally and it is on the rise.

Paul Midlane, Afrocentric’s General Manager of Legal Governance and Risk Compliance, highlighted that fraud of this type is a problem common to both provider and claimant ends. Out of South Africa’s population of roughly 53 million people, only nine million are covered by health insurance, which makes the market relatively small.

Derick Cluley, Fico’s South Africa Manager explained that the current state of the South African health insurance environment was hard to determine: “Historically it’s been under the radar because it can be

P I O N E E R I N G S U S TA I N A B L E H E A LT H C A R E I N S U R A N C E

‘According to KPMG data, healthcare fraud accounts for between 10 and 20 percent of gross healthcare claim payments globally and it is on the rise’ – Paul Midlane, Afrocentric’s GM of Legal Governance and Risk Compliance

very difficult to detect; the cost of fraud has just been been built into the costing and actuarial models.”

Midlane added: “Because we don’t know the state of healthcare fraud in South Africa, that’s exactly why we’ve brought in the predictive analytics of Fico so we can start to determine the scope of fraud, as well as waste and abuse.

“Healthcare is one of the most complex forms of insurance you can receive and every claim has an emotive 9

FINANCE

element to it. Systems have just been designed to cope with the volumes and honouring healthcare claims but the patterns and trends that have emerged is that there are so many opportunities for providers to overcharge, over service and over claim.”

It is therefore very clear that an intervention into this aspect of the sector was long overdue and would need to be supported using a variety of tools. It was this opportunity 10

November 2015

that brought AfroCentic and Fico together, Cluley explained.

The Insurance Fraud Manager The IFM was compiled exploiting Fico’s decades of analytics experience fighting credit card fraud using sophisticated profiling techniques alongside AfroCentric’s healthcare expertise. Cluely explained how the system worked in basic terms: “Claims and transactions come

P I O N E E R I N G S U S TA I N A B L E H E A LT H C A R E I N S U R A N C E

through, we score them against profiles and specific patterns of providers to understand whether a claim is normal, or out of pattern.

“Medical organisations can then use their clinical knowledge and expertise to make a judgement as to whether a claim is legitimate or abnormal.”

Midlane explained that in some instances the IFM would be able to prevent cases of fraud or error almost as they were happening, he said: “Currently fraud is detected retrospectively; you either need to notice that there has been a spike in claim patterns happens after several months or receive a tip-off from a whistle-blower. Getting money back before it is paid is a huge challenge

for the industry; what the IFM will do is point us in the right direction on a daily basis and can even prevent payment going out as the claim is made.”

Cluley said: “Understanding the cost structure that underpins healthcare is going to make healthcare more affordable and more available for people that don’t have access today.”

While the system is geared toward detecting anomalous claims against established sector norms, the software has been designed to be non-invasive and to only target results it deems to be abnormal, leaving confidential patient data untouched.

Midlane added: “The more it is used, the better it will be. Our intention is to capture the entire market, because it’s so unique and ground-breaking.”

The IFM represents a major intervention in the South African healthcare sector and, alongside its fraud detection capabilities has the potential to bring transparency and integrity to the entire space.

Its adoption will not only benefit those with investments in health insurance; savings and greater openness will drive down costs for the consumer, increasing people’s access to healthcare insurance.

11

TECHNOLOGY

Charting the Growth of Nigeria’s Consumer Economy W R I T T E N B Y N Y E LO N G M A N

The information measurement company’s poll provides business snapshot of the Nigerian market and thus an important tool. We d implications of this with Nielsen’s West Africa Managing Director, ALTHOUGH AFRICA’S LARGEST economy is often characterised by the dominance of the petroleum industry, Nigeria’s retail and consumer goods market has been playing catch-up and now stands as the third highest contributor to the country’s GDP. This, coupled with consistently strong growth and an ever-growing middle class, makes the future of the nation’s retail landscape (not to mention the 12

November 2015

actionable insights made available by the Nielsen census) all the more exciting.

The rise of Nigeria Nielsen’s ongoing survey, which has so far reached over 1.2 million retail outlets, could not have come at a more exciting time in Nigeria’s economic history. Research from a variety of sources suggests that the country’s

ses with an accurate discuss the Lampe Omoyele.

Real GDP will grow by at least five percent in coming years, in spite of the current slump in oil prices, and that the country’s middle class is expected to grow to keep up with this.

According to research carried out for the CIA Global Factbook, the country’s most affluent middle class makes up between 11 to 18 percent of the population, while its emerging middle class will increase from 20

to 27 percent by 2020. Euromonitor research also indicates that Nigeria’s retail sector now contributes to as much as 16 percent of the country’s GDP, making the sector ripe for opportunity.

Nielsen’s Director for West Africa Lampe Omoyele explained: “Our goal in Nigeria is to identify and segment which retail channels and outlets sell our clients’ products, their 13

Users can identify stores using GPS, as well as electronic tracking, photos, and maps. competitors’ products and the overall range of categories. This will provide a superior understanding of the overall market and our client’s presence.”

Insights The survey utilised mobile technology in order for the auditors to be able to achieve the greatest level of penetration, with information gathered being fed back into a live centralised system. Omoyele said: “It is easy to use; clients can look on the site and are able to make rational decisions on their own. We have gone from one region to another and as we have completed these, our system 14

November 2015

is updated so then we deliver the data and mapping to the clients.”

“We can identify stores using GPS coordinates, as well as electronic tracking, photos, and maps. This offers solutions to optimise distribution and regional strategy. Because of the vast environment, it’s a real challenge for manufactures to reach all of them, therefore we are able to also grade and profile various outlets and enable businesses to reach those outlets that are suitable.”

Lampe Omoyele, Nielsen West Africa Managing Director

C H A R T I N G T H E G R O W T H O F N I G E R I A’ S C O N S U M E R E C O N O M Y

“Another important benefit that is immediately available for users is the ability to be able to segregate data into percentiles, which makes it extremely easy to target specific stores” Another important benefit that is immediately available for users is the ability to be able to segregate data into percentiles, which makes it extremely easy to target specific stores. Furthermore, the poll also gives an indication as to what the typical shopper at any particular outlet might be like.

Challenges Nigeria’s population stands at roughly 170 million people, covered by somewhere in the region of two million outlets. Nielsen’s goal of reaching as many of these as possible is ambitious in itself but the fact that as many as 90 percent of these outlets are part of the country’s informal sector makes the achievement all the more impressive.

In order for a poll on this scale to be executed, the company trained and deployed the largest data acquisition team of its kind in the world which enabled Nielsen

to monitor 11,000 outlets per week, eventually increasing to as high as 55,000 in the same time period. The team of over 1,500 is aiming to have nearly all of the country’s two million outlets covered by the end of 2015.

Omoyele said: “Our teams had to overcome many on-the-ground challenges including insecurity, poor road infrastructure, power outages and poor network coverage in rural areas as well as limited digital satellite imagery and map availability.”

What Nielsen has achieved in terms of scale and insight is truly unique and has the potential to deliver untold benefits for everyone in the supply chain: from customers, through to outlets, distributors and manufacturers.

Furthermore, the successful polling model and the supporting mobile technology has also been deployed in Pakistan where it will cover 600,000 stores, and Lampe foresees further African use.

15

TOP 10

The Top 10

Most Innovative African Economies The Global Innovation Index 2015, compiled by a consortium headed by INSEAD and The World Intellectual Property Organisation, ranks the world’s most innovative countries’ economies Written by: Nye Longman

17

TOP 10

10

MALAWI

GLOBAL RANK: 98 Although at first glance Malawi’s statistics don’t look like much (with agriculture making up 30 percent of its GDP and 85 percent of its export revenues.) It has been praised in the report for out-performing others in its income group. Industry and services make up roughly 20 percent of its labour force and this number is set to grow.

18

November 2015

T O P 1 0 M O S T I N N O V AT I V E A F R I C A N E C O N O M I E S

09

MOZAMBIQUE

GLOBAL RANK: 95 Although in a low-income bracket, Mozambique’s economy also received praise in the report for leading the way for similar countries. The country has undergone various liberalising reforms and has grown its local food and manufacturing sectors.

With almost 90 percent of its arable land remaining uncultivated, the opportunities for innovation in its agricultural sector are immense.

08

RWANDA

GLOBAL RANK: 94 Rwanda is one of the fastest growing economies in Africa and over the past decade has significantly increased the number of people connected to electricity while reducing its percentage of people in poverty by over 10 percent. It has a climate and landscape perfect for growing tea, a sector which remains ripe for innovation.

19

TOP 10

KENYA

07

GLOBAL RANK: 92 Kenya’s economy is ripe for investment and innovation but don’t take our word for it, US President Barack Obama said the same when he visited there earlier this year. Alongside high growth percentages and an increasingly large numbers of graduates, the country can boast strong export links (processed through its own export processing zone) with much of the world.

BOTSWANA

GLOBAL RANK: 9 It is widely agr economies in A taken the mos towards marke other, indeed s the country ha growth in the w impressive min country has se tourism and fin 20

November 2015

A

T O P 1 0 M O S T I N N O V AT I V E A F R I C A N E C O N O M I E S

SENEGAL

05

GLOBAL RANK: 84 Under the supervision of the IMF and the World Bank, Senegal is undergoing major economic reforms and has already seen major positive changes, alongside debt cancellation and increasing private sector involvement. Its economy is relatively diversified, with petroleum marketing, chemicals and banking making healthy economic contributions.

06

90 reed that, out of all the Africa, Botswana has st strident measures et liberalisation than any since independence, as posted the highest world. Alongside neral deposits, the een growth in both nancial services.

21

TOP 10

MOROCCO GLOBAL RANK: 78 Morocco has a diversified economy, covering mining, construction and food processing. Since independence the country has also grown a strong tourism sector and has maintained strong economic ties with France since then. The North African nation connects the continent with Europe, by way of the Mediterranean, and can therefore boast access to the biggest market in the world.

TUNISIA

GLOBAL RANK: 76 As is the case with so many African countries, Tunisia is undergoing a lengthy market liberalisation proces following decades of arbitrary state intervention; a process that was accelerated after the 2011 Arab Spr The country sits atop decent oil reserves but has also built promisin manufacturing, mining and textiles s Following the terrorist attacks at the Bardo National Museum, the countr

22

November 2015

T O P 1 0 M O S T I N N O V AT I V E A F R I C A N E C O N O M I E S

02

n

ss e

ring.

ng sectors. e ry’s

SOUTH AFRICA GLOBAL RANK: 60 South Africa’s economy, while beset by challenges, is still the second largest on the continent and a strong contender for its most sophisticated. It is well known for having developed mining (it is the world’s largest platinum producer) manufacturing and agricultural sectors, and for having a strong consumer goods market, representing one of the most diversified economies on the continent.

23

TOP 10

01 MAURITIUS

GLOBAL RANK: 40 Mauritius is well known for the strength and competitiveness of its financial institutions, not to mention its banking sector. It has experience decades of sustained economic growth, usually of about 5 percent annually.

Growing consistently in this way has enabled the country to diversify from an agricultural base towards manufacturing, financial and tourist sectors. It is these last two incomes streams which also ensure that the Island nation to both build and attract a large talent pool of workers trained to graduate-level.

24

November 2015

T O P 1 0 M O S T I N N O V AT I V E A F R I C A N E C O N O M I E S

25

A Major Boost To The Ghanaian Economy Written By Sam Jermy Produced By Anthony Munatswa

27

AT U A B O F R E E P O R T

Strategically located in the Gulf of Guinea, the brand new development will be a dedicated oil and gas free port

28

November 2015

A

tuabo Free Port is set to provide a major boost to the economy of Ghana, as the $700 million facility begins construction next year before becoming operational in 2017. Having recently completed a number of preliminary activities onsite, the company and China Harbour Engineering Company have signed a construction agreement establishing the latter as the main contractor of the project to build a dedicated three-quay port. It is also estimated that over 1,000 jobs will be created as a direct result of the project.

In terms of maritime activity, there are three clear areas for the impending facility, which will become Ghana’s third major port. One is an offshore logistics base where goods are received for the offshore oil and gas industry, collated and marshalled onshore and then shipped offshore to the rigs and other vessels during the exploration, appraisal and field development and production phases.

The second area is value-added work such as subsea fabrication; this provides the infrastructural platform for companies to do more work in-country which means the company keeps aligned with local content regulations in Ghana.

Thirdly, there will be the rig and vessel repair sites where the vessel owners will be able to come in and have their vessels repaired or rigs maintained and repaired by various service companies.

Steven Gray, Director at Atuabo Free Port, said: “We have a number of companies who’ve

ENERGY

Video: Atuabo Free Port

signed up to MoUs with us and are already present in Ghana supporting the oil and gas industry. In addition to the three main areas, there are other elements of the project, such as the logistical movement of personnel.

There’s an aerodrome on the site where fixed wing planes can fly in from Accra, and then the rotary wing helicopter operations would operate from there to the offshore platforms.

“Then we will have the technology park area where companies who are just seeking office space other than industrial facilities can locate themselves. Predominantly, it’s an international effort: you have to have international contractors that the financing partners are comfortable with - firms that

1,000 Number of jobs to be created by the project

w w w. a t u a b o f r e e p o r t . c o m

29

AT U A B O F R E E P O R T

We Are Creating A Brighter Future!

• Marine Engineering • Road and Bridge • Railway

• Airport • Complete Plant • Dredging and Reclamation

China Harbour Engineering Company Ltd. (CHEC) is a world-renowned international contractor. CHEC has 40 overseas branches and offices with business activities covering more than 70 countries and areas including Ghana, Ivory Coast, and lots of Africa countries. The company is currently employing over 7,000 domestic and international staff to undertake 10 billion USD worth of projects.

CHEC is focused on basic infrastructure construction, and principally engaged in the survey, design, construction and supervision of road, bridge, port, terminal, channel, railway, tunnel, airports, civil work and other infrastructure construction, capital dredging and reclamation dredging, the investment of transportation infrastructure, development and operation of urban complex, estate development and etc.

CHEC prides itself on providing a full service to its clients and uses its international engineering experience, global business network, talented management team and robust financial backing to offer clients a wide range of service options such as D&B, EPC, PMC, BT , BOT and PPP. Apart from the contractor for AFP Project CHEC has also executed the Ghana Fufulso-Sawla Road Project, Ivory Coast Abidjan Container Terminal Project, Guinea Conakry Container Terminal Project and etc. We are focusing on provide an one-stop solution for our client from the feasibility, design, construction and operation. We are working towards a win-win situation for all our client and partner.

30

November 2015

Tel 00225 2135 7650 | Email checwa@chec.bj.cn | Web www.chec.bj.cn

AT U A B O F R E E P O R T

ENERGY

have the expertise to handle the construction risks while delivering services on time.

“But in addition to that we’ll have a situation where if companies want warehouses or offices built, then that area is being identified as the area where Ghanaian contractors can execute their work.”

Regional hub In terms of the capital structure, the Ghanaian government has a 10 percent ownership share, held by the Ghana Infrastructure Fund as a freehold; a further 35 percent will be purchased by Ghanaian state enterprises such as Ghana National Petroleum Corporation and Social Security and National Insurance Trust. Then the international shareholders and a number of international partners will make up the remaining equity.

Because Atuabo is set to be a dedicated hub for the oil and gas industry and not just a rudimentary container shipping port, Gray believes it can subsequently become much more of a regional player in West Africa than a country player in that respect. He said: “This will be particularly true for the rigs; we will be meeting a high demand that is not currently met in this area. The offshore supplier vessels have greater choices, but there are still capacity issues in West Africa in terms of facilities that can repair and maintain offshore supply vessels.

“Also with the infrastructure deficit on the

Ghanaian government has a 10 percent ownership share, held by the Ghana Infrastructure Fund

w w w. a t u a b o f r e e p o r t . c o m

31

AT U A B O F R E E P O R T

The port could be able to reduce the operational cost of oil by up to one dollar a barrel

continent, and Ghana is no different from other African states, this is a project where they’ve opened up the private sector to come forward with a solution: they’ve addressed the infrastructure deficit for this particular sector without using their balance sheets.

“There are no government guarantees and there is no payment for constructing this facility from the Government of Ghana, so it frees up additional government funds that could be used to develop existing port infrastructure and other maritime sectors.

“We see the potential certainly in the Ghanaian offshore context, the port being able to reduce

Quality and Excellence

Tel: +233 (0)302 742030 Fax: +233 (0)302 742035 info@taysec.net w w w. t a y s e c . n e t

32

No.1 14th Avenue New Achimota Estate P.O.Box OS 1010 Osu, Accra Ghana

At Taysec we strive in all aspects, from project inception to maintenance of N o vthe e mfinished b e r 2 0facility 1 5 to provide quality results on time and within budget.

ENERGY

the operational cost of oil by up to 90 cents to one dollar a barrel, which is significant.�

Atuabo Free Port anticipates that there will be work

Direct benefits During the construction phase, about 70 percent of the workforce will be Ghanaian. During the operational phase, Atuabo Free Port is a platform that allows other companies to execute their work, so although Gray cannot speak for the tenants coming into Atuabo and where they will source their people from, they will be encouraged to employ Ghanaians who have the skills they require. Certainly Atuabo Free Port’s focus is recruiting from the Ghanaian market and Ghanaian labour resources in the first instance.

opportunities in Ghana for offshore activities from 2018

w w w. a t u a b o f r e e p o r t . c o m

33

AT U A B O F R E E P O R T

Key Personnel

Steven Gray Director

34

November 2015

As part of social engagement with the community area surrounding Atuabo, one of the social intervention programs is the establishment of a community based manpower agency set up by the majority shareholder and international partners. Resources and the profits accruing to the agency will be reinvested back to skills development so there is a sustainable skills development funding for the community who today largely have fish or agricultural based careers.

Gray said: “They don’t necessarily have all the skills needed for the oil and gas industry, so this is a way to support skills development through a sustainable business model.

ENERGY

“We anticipate that there will be quite a lot of work opportunities in Ghana for the offshore activities from 2018 onwards. So it certainly is going to be an energetic market in the early years. But I think, you can look at Atuabo Free Port as a regional hub as well.

“Ghana for all the right reasons is seen as a gateway to other countries in West Africa; the English language, the rule of law, a stable democracy – it’s all there. We’re already seeing that with Expro, Halliburton, Schlumberger having their regional offices located in Ghana.

“As the capacity and quality of the indigenous companies improve, they’ll be able then to sell their services to other markets and clearly you see the regional markets as their first entry points to support industries. We’re seeing a lot of that already manifesting, where the Ghanaian companies are exporting their skills to Liberia, Searra Leone and so on.”

Time is clearly money in Oil and Gas: when you have a rig operation, it is costing anywhere from $0.5 million to $1 million per day, so even an hour’s delay costs companies a considerable amount of money. Atuabo Free Port can offer firms the ability to have a sustainable business, not just for the exploration phase but also the development and production phase and so that may well make marginal fields profitable. This is just one of the reasons why Atuabo Free Port will be a welcome addition to the West African offshore oil and gas industry from 2017.

‘Atuabo Free Port’s focus is recruiting from the Ghanaian market and Ghanaian labour resources in the first instance’

Company Information INDUSTRY

Energy HEADQUARTERS

Accra, Ghana PRODUCTS/ SERVICES

Ports & Terminals

w w w. a t u a b o f r e e p o r t . c o m

35

Bringing internati to Southern Africa

Written by: N

tional standards can markets

Nye Longman Produced by: Daniel Pritchard

37

BRITISH AMERICAN TOBACCO - SA

Pioneering best practices across the board, the multinational tobacco products manufacturer has become one of South Africa’s top companies as well as a leading regional organisation.

38

November 2015

T

hrough its commitment to operational excellence, British American Tobacco (BAT) has proven healthy growth is possible, even in an increasingly competitive and regulated sector. By championing the work of its staff and supporting the communities it operates in, the company has positioned itself to continue its dominant position in Southern Africa and beyond. We spoke to Seyi Adeyemo, BAT’s Head of Supply Chain for the Southern African region, to learn more about how a company with a global remit was able to achieve this while retaining local relevance.

BAT’s operations cover every aspect of the tobacco product cycle, everything from growing the tobacco, through to manufacture, marketing and distribution to the adult consumer who gets to enjoy his or her smoking moments. Three manufacturing facilities (including one which ranks as one of the largest in the world) cover the company’s regional production requirement including exports to over 20 countries in Africa and the Middle East. Local Distribution is serviced by eight mega depots and 10 cross docks with multiple distribution networks across the country.

This supply chain directly oversees 10 markets comprising: South Africa; Angola; Zambia; Lesotho; Botswana; Namibia; Malawi; Swaziland; Mozambique and Zimbabwe.

Although focused regionally, Adeyemo said, the tobacco products manufactured at these facilities were exported globally, not to

S U P P LY C H A I N

Key Personnel

Seyi Adeyemo Head of Supply Chain SAA BAT - South Africa factory

mention to the rest of the African continent.

He said: “We have a big local market in South Africa; we undertake most of the support for manufacturing, product research and regional quality management for the continent from here.”

Being part of a company with a global reach has exposed operations in Southern Africa to international standard expectations across the board, in terms of operational excellence, quality and social responsibility. Commenting on BAT’s production standards in this regard, Adeyemo said: “There is a constant focus on improving the efficiencies of our processes and operations. We do an internal benchmark first and look at best practices across the region as well as across all of our operations globally.

“We do regional and global reviews so

Seyi Adeyemo became Head of Supply Chain, Southern Africa Area (SAA) in January 2014 following a stint as the Head of Product and Quality for Southern African Area.

Seyi Joined BAT in 2013 as the Head of Quality after which he moved into the Area Supply Chain Manager role. Seyi has Prior FMCG experience with Procter & Gamble where he worked for 14 years in various capacities including head of Logistics, head of Supply Chain, lean/Six Sigma program manager and Group Operations manager in West Africa.

w w w. b a t s a . c o . z a

39

BRITISH AMERICAN TOBACCO - SOUTHERN AFRICA

2,500 Number of Employees at British American Tobacco SA 40

November 2015

that there is clear visibility to management from efficiency, inventory management and all the financial control requirements.

“We also do external benchmarking, since often non-tobacco related industries also have some very good standards that can be reapplied, particularly with Lean, 6sigma and Integrated Works Systems. If there’s a best practice in another industry, we are not shy to apply it to our own.”

S U P P LY C H A I N

Arturo Rodriguez Head of Operations, Southern Africa Area

Mastering the African supply chain Being the dominant tobacco company in most of the markets it serves comes with its own challenges, not least those imposed by operating in countries where both infrastructure and legislative challenges are commonplace.

Adeyemo said: “African logistics is complex.

Getting our products around can be difficult, especially because road networks and infrastructure are not always well developed.

Arturo joined BAT in 1995 and has fulfilled various roles in Operations in Mexico and Kenya, including Manufacturing Manager at Heidelberg for three years. As the Head of Operations for ECA in 2011, Arturo led the overall expansion and optimisation of the factory. He has a depth of business experience and leadership and is well known for his commitment to developing people and getting things done quickly and to a high standard. These are qualities that are valued and critical for the success of Operations in SAA. Arturo is married with three sons.

w w w. c o m p a n y u r l . c o m

41

BRITISH AMERICAN TOBACCO - SOUTHERN AFRICA

Proud packaging partner

W

hen only the best packaging will do for intensely competitive cigarette marketers. CTP Gravure is almost invariably the company of choice – offering these discerning customers exactly the right combination of design innovation, handsome aesthetics and the highest printing and finishing standards on all outer packaging as well as cork tipping and multi-colour tipping requirements.

Your partner in print for products on the move CTP Gravure (Jhb) a division of CTP Limited Tel: +27 11 345 – 4000 Fax: + 27 11 345 – 4400

BUSINESS IS COLLABORATION INSPIRING OUR CLIENTS TO BE MORE

PROUDLY PARTNERING WITH BRITISH AMERICAN TOBACCO SOUTH AFRICA SINCE 2011

www.imperiallogistics.co.za

42

November 2015

BRITISH AMERICAN TOBACCO - SA

S U P P LY C H A I N

Sometimes our products have to go out by sea into Europe in order to then get back to Africa!

“This is just part of doing business on the continent and is factored into the cost of production. Planning is critical, understanding the market and understanding the culture of the markets that we go into is therefore essential.

“We need to plan how we manage our inventory, how we manage logistical lead times and how we work with different currencies to handle the volatility that exists in our business environment.

We have global systems in place; we have dedicated people who understand the terrain, and we have systems that help us to predict and plan our logistics. Speed to market and availability of stock to our customers and consumers are our crucial logistical concerns in this regard.

“We work with third Partly Logistics companies across Africa who know the terrain, especially in terms of Port operations, road transport, and they move the majority of our stock for us. We work with the right partners to get our product to where we want it to be.”

Growing responsibly Across its global operations, BAT seeks to operate in a way that not only directly create value for its shareholders, but also those stakeholders involved with its operations indirectly, particularly the communities it works in, both socially and environmentally. By factoring this into its business model, the company has received

Key Personnel

Brian Finch Managing Director Brian Finch was appointed as the Managing Director of BAT Southern African Area in April 2010 following a stint as Head of Marketing for BAT’s Africa Middle East Region.

He began his career at BAT more than 20 years ago and has occupied several marketing roles at different levels in seven countries, including Congo, Zimbabwe, the UK and Switzerland. One of Brian’s secrets of success is to try to turn bad into good, and challenges into opportunities.

w w w. b a t s a . c o . z a

43

BRITISH AMERICAN TOBACCO - SA

Video: A day in the life of a prompt sales representative

44

November 2015

international awards alongside local recognition.

Adeyemo noted that this holistic approach began within the business itself; with our commitment to skills development and training, opportunities to progress both educationally and professionally are always available for employees looking to excel and lead those around them along the same path.

The company operates a 70:20:10 Development model (70 percent on-thejob learning, 20 percent learning through others and 10 percent formal training) which supports agile learning by encouraging individuals to identify flexible ways of acquiring knowledge and skills in relevant contexts.

S U P P LY C H A I N

BAT’s operations cover every aspect of the tobacco product cycle

w w w. b a t s a . c o . z a

45

BRITISH AMERICAN TOBACCO - SA

“More than 77 percent of employees are from previously disadvantaged population groups and BATSA is Certified as a Top Employer in South Africa for 2015 and achieved the much coveted level 3 BBBEE compliance.”

– Seyi Adeyemo Head of Supply Chain SAA

46

November 2015

The company’s CSR operations in its region are well-esta

On top of having to compete with other tobacco producers, BAT has to deal with all the challenges associated with the illicit tobacco trade, as well as government regulation that is sometimes inconsistent across different markets. Adeyemo was confident that the company’s competitive position enabled it to not only conquer these challenges but also to be in a position to work with governments to defeat the illicit trade.

The company’s CSR operations in its region are well-established and have received international acclaim, with focus on empowerment, sustainable agriculture and civic life. More than 77 percent of employees are from previously disadvantaged population

S U P P LY C H A I N

Company Information INDUSTRY

Tobacco supply and production HEADQUARTERS

Cape Town, SA FOUNDED

1902 EMPLOYEES

ablished and have received international acclaim

2,500

groups and BATSA is Certified as a Top Employer in South Africa for 2015 and achieved the much coveted level 3 BBBEE compliance.

The company has been able to recycle over 95 percent of waste generated, as well as upwards of 50 percent of its water, which it also collects and feeds back into production.

By combining its might as a global operator with a dedicated focus on the needs and nuances of the markets comprising southern Africa, BAT has been able to remain one of the top tobacco companies while also proving that retaining a position as strong as this can be done so in a socially and environmentally friendly fashion.

REVENUE

85% of Legal Market Share in South Africa PRODUCTS/ SERVICES

Tobacco supply and production

w w w. b a t s a . c o . z a

47

CAA: Putting Uga

Written by: Nye Longman Produced by: Daniel Pritchard

anda on the map 49

C I V I L A V I AT I O N A U T H O R I T Y O F U G A N D A

The Civil Aviation Authority of Uganda is leading the development of the country through the timely implementation of its 20-year Master Plan

U

ganda’s Civil Aviation Authority (CAA) has reached a turning point. Faced with an ever-increasing growth in demand for its services and insights, the Authority has developed a strategy massive in scope; the 20year ‘master plan’ will look at building the capacity of Entebbe Airport in order to facilitate the growth of the Uganda’s economy in the long term. It is achieving this by ensuring operational efficacy through technological innovation, operational excellence, and by supporting its workforce.

Operations The CAA is primarily concerned with the operations of Entebbe Airport (in addition to some other small-scale airfields) and, in an official capacity, its main responsibility is to maintain the highest standards of safety, security and service in civil aviation.

Its remit is not as narrow as it sounds, as Managing Director Rama Makuza explained: “The Authority offers advisory, operational and control functions to the government of Uganda the air transport operators and other stakeholders in the air transport industry.

“In particular, The Authority is charged with the role of advising on international conventions relating to civil aviation and how these will be adopted necessary to give effect to the standards and recommended practices under those conventions.”

It is also charged with licensing air transport,

50

November 2015

S U P P LY C H A I N

Entebbe International Airport

safety regulations, providing air navigation services, coordinating search and rescue activities and certifying both operators and aircraft. The Authority is also charged with the establishment, maintenance, operation and ownership of aerodromes and, any other functions as may be conferred upon it by government.

In short, the CAA forms the backbone of Uganda’s civil aviation sector and is therefore responsible for its economic growth through this channel, both directly and indirectly.

Last year, the Authority had a registered income of $46.4 million and has an average annual recorded growth of nearly 60 percent; developing at this rate brings with it both opportunity and danger in almost equal measure.

This all came to a head last year, Makuza explained, and required appropriate action.

He said: “We found ourselves handling traffic that

Key Personnel

Dr. Rama Makuza Managing Director

w w w. c a a . c o . u g

51

C I V I L A V I AT I O N A U T H O R I T Y O F U G A N D A

52

November 2015

S U P P LY C H A I N

w w w. c a a . c o . u g

53

C I V I L A V I AT I O N A U T H O R I T Y O F U G A N D A

CAA(U) staff meet with IT Specialists from CISCO on 25th February, 2015 at CAA(U)

had been projected for 2019 in 2014! The 20-year Master Plan is and was a response to this increase in pressure and demand for our aviation services and facilities following this tremendous growth in traffic, which has surpassed previous projections.�

headquarters

Technology In liaison with regional experts in the aviation industry, the Authority has used technology as a panacea to address safety, capacity, efficiency and environmental requirements, particularly in-line with the ICAO Global Aviation Plans in Air Navigation and Safety.

Included are some Mode S radar surveillance systems which simultaneously provide enhanced 54

November 2015

S U P P LY C H A I N

surveillance capabilities and reduce controllerpilot workload. The CAA has also undertaken a series of automation measures across the board in a bid to drive efficiency and safety, this covers air traffic management (ATM) and aeronautical information management through the implementation of automatic terminal information systems (ATIS) and safety nets, as well as automatic weather observation systems (AWOS).

The Authority is also in the process of migrating from conventional navigation systems based on fixed points to satellite based navigation using global navigation satellite systems (GNSS). It has already delivered GNSS Approaches for Entebbe Airport, as well as area navigation on some international routes.

Makuza said: “With this we expect to reduce air traffic delays and provide more flexible and direct routes through Ugandan airspace. We have now engaged a consultant to re-design the airspace of Uganda to take into consideration the increased traffic at Entebbe and the new airports and control zones.

“The new airspace re-design will also address the underlying technologies required to support future ATM operations for both civil and military traffic. We are also participating in regional safety projects in the EAC, Northern Corridor, Central Corridor, COMESA and Tripartite, among others, that will bring together collaborative efforts from across the region to improve safety, capacity and efficiency.”

CAA(U) staff discuss with IT Specialists from CISCO the CAA (U) IT business requirements

“We expect to reduce air traffic delays and provide more flexible and direct routes through Ugandan airspace” – Rama Makuza, Managing Director

w w w. c a a . c o . u g

55

C I V I L A V I AT I O N A U T H O R I T Y O F U G A N D A

$46.4m The amount of revenue generated by the Civil Aviation Authority Of Uganda

The CAA also understands the importance of technology from a software perspective and is ensuring that it can benefit operationally from rolling innovations out in this regard.

These have taken the form of monitoring and evaluation systems which staff have already been trained to operate.

Software has also driven the Authority’s automation drive, particularly in the form of e-procurement, passenger tracking, and car parking. CAA is also looking to implement a new log management system and revamp its flight information displays to have a more modern look.

The Authority is also utilising modern

The Management and Staff of Peja East Africa BV., Would like to thank Civil Aviation Authority (Uganda) For the more than 20 years’ close cooperation.

We, together with our Principals we represent, Congratulate UCAA upon this milestone.

We are enabling UCAA get the best technology Of the world-leading Manufacturers.

• Atis/Awos Systems • Air Traffic Control • Air Navigation Systems • Voice Recorders

• Radio Communication VHF/HF • AFIS • Consoles • VCCS

• Airfield Ground Lighting • Bagage Handling Systems • Non-Directional Beacon • Tower Simulators

T +31263541200 E info@peja.nl | Peja East Africa BV | P.O. Box 117 | 6800AC | Arnhem | The Netherlands

S U P P LY C H A I N

Civil Aviation Authority head offices in Entebbe

flying techniques, in the form of continuous descent and climb operations, which will help to reduce its emissions and fuel burn and, as so many organisations are finding, will reduce the amount spent on this aspect.

Talent management Makuza was proud of the achievements of his staff in the face of an ever-increasing demand for services; his confidence in his teams is well founded since the Authority has strived to ensure that not only its workforce performs highly, but also that it is adequately motivated and rewarded in recognition of this fact.

He said: “Aviation is a highly specialised industry that calls for specific skills in most areas. We provide attractive packages to staff.

“It is clear that the CAA (not to mention Entebbe Airport itself) is set to play a significant role in the social and economic development of Uganda as tourism and trade continue to grow” – Rama Makuza, Managing Director

w w w. c a a . c o . u g

57

C I V I L A V I AT I O N A U T H O R I T Y O F U G A N D A

“Uganda operates a liberalised air transport regime which encourages free entry and exit of air operators.

It is therefore in its interest to encourage foreign air operators to operate in its airspace extend a number of incentives to domestic and international operators” – Rama Makuza, Managing Director 58

November 2015

East African Safari Air Express launched flights to Entebbe International Airport

We also undertake continuous motivational programmes to ensure job satisfaction.

Staff are also supported to attain higher academic grades and professional skills.”

“The majority of the technical staff at the Authority are internationally certified; we review our training needs and plan every year to ensure that standards are maintained. The training plan ensures that the various staff training needs are addressed following recommendations and observations of the staff appraisal exercise and the industry system audits.”

“The management team and managers have

S U P P LY C H A I N

all been exposed to the Aviation Management Course that is conducted at various Aviation Academies to specifically equip them for the industry’s rapidly changing environment.”

Company Information INDUSTRY

Aviation

Putting Uganda on the map Uganda operates a liberalised air transport regime which encourages free entry and exit of air operators. It is therefore in its interest to encourage foreign air operators to operate in its airspace extend a number of incentives to domestic and international operators.

Makuza said: “Some of the incentives include a 100 percent discount on aeronautical charges for one flight out of every seven frequencies a week in/out of Entebbe International Airport, on a specific sector, for scheduled domestic operators.

“In relation to investment in physical infrastructure, CAA also provides rebates on land lease rates and concession fees equivalent to 10 percent of the capital investment cost spread over 10 years to capital projects for aviation infrastructure undertaken in Uganda.”

It is clear that the CAA (not to mention Entebbe Airport itself) is set to play a significant role in the social and economic development of Uganda as tourism and trade continue to grow.

By tacking the prospect of massive growth in demand head-on with its 20 year master plan, the Authority will be fully equipped to ensure that the country’s most important air asset is set to facilitate the development of the country.

HEADQUARTERS

Kampala, Uganda FOUNDED

1994 REVENUE

$46.4 million PRODUCTS/ SERVICES

The authority advises government on policy matters concerning civil aviation generally and on matters regarding international conventions relating to civil aviation and the adoption of measures necessary to give effect to the standards and recommended practices of the international air transport system

w w w. c a a . c o . u g

59

Airports Council International, Africa Region (ACI Africa): Supplied by: ACI

61

ACI AFRICA

A

CI Africa was established as a region of ACI in 1991 with the overarching objective of advancing the collective interests of African airports and the communities they serve.

ACI Africa consists of 62 regular members in 50 countries managing 250 airports and 21 World Business Partners.

“The continent is vast and dynamic, and serving our membership requires developing bespoke solutions to myriad challenges,” explained Ali Tounsi, Secretary General, ACI Africa. “As such, we focus on training, conferences and exhibitions, and collaboration with aviation stakeholders to promote a safe, sustainable and economically viable airport industry that is well positioned for future growth.”

In the realm of training, ACI Africa, in coordination with the ACI Fund and the ACI Developing Nations 62

November 2015

S U P P LY C H A I N

Assistance programme, regularly organis es free courses in French and English to members to improve the capabilities of their staff, especially in the areas of security, the development of non-aeronautical revenues and safety.

Indeed, ACI’s top priority is ensuring safety across every aspect of airport operation. With this goal in mind, the ACI Airport Excellence (APEX) in Safety programme was established in 2012 with the main objective of promoting safety at member airports by identifying gaps and sharing best practices with an eye toward eventual aerodrome certification.

In 2014 ACI Africa welcomed the APEX in Safety team at Sir Seewoosagur Ramgoolam International Airport in Mauritius; Félix Houphouët Boigny International Airport in Abidjan; Diori Hamani International Airport in Niger; Cotonou International Airport; Khartoum International Airport; PortGentil International Airport; and Ouagadougou International Airport. At the time of writing, Nigeria’s Nnamdi Azikiwe International Airport is preparing to host an APEX review in mid-June.

“ACI Africa and its members understand that ensuring the safety of the traveling public is paramount to building a sustainable industry,” Tounsi said. “I’d like to congratulate African airports for their proactive stance with regard to improving safety standards.”

ACI Africa is equally committed to representing its members’ interests on both the regional and world stages, participating in events on a

“ACI Africa and its members understand that ensuring the safety of the traveling public is paramount to building a sustainable industry” – Ali Tounsi, Secretary General, ACI Africa

w w w. a c i - a f r i c a . a e r o

63

ACI AFRICA

64

November 2015

S U P P LY C H A I N

regular basis as a means of sharing knowledge and bringing attention to airport issues. Most recently, ACI Africa actively participated in the Aviation ICT Forum; the Second Airport Expansion Summit; the UNWTO Regional Seminar on Tourism and Air Connectivity in Africa; the African Renaissance Movement Conference; IATA Aviation Day; the Summit of the African Strategy Roads; and the ICAO meeting on Development of Air Cargo in Africa.

In addition to the above, ACI Africa organises events as a means of giving delegates a forum to share experiences and plot the future of the industry in the region. In 2014, ACI Africa held a very successful Regional Security Conference in Dakar, Senegal, as well as its 23rd Annual Assembly, Conference & Exhibition in Durban, South Africa.

“2015 is shaping up to be just as exciting as last year,” Tounsi noted. “In April ACI Africa held the 53rd Meeting of the Board and Working Groups, with its Regional Exhibition and Conference taking place at the same time. Looking ahead, we will welcome delegates to Hammamet, Tunisia in October for the 24th ACI Africa Annual Assembly, Conference & Exhibition.

“ACI Africa is proud to act as the voice of the region’s airports,” concluded Tounsi. “Africa is at the forefront of emerging markets with regard to its high potential for increased air travel, and as the airport industry evolves, we will be there to ensure that it does so safely, securely and sustainably.”

Pascal Kowu Komla, President

Ali Tounsi, Secretary General

w w w. a c i - a f r i c a . a e r o

65