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AFRICA EDITION AUGUST 2018 africa.businesschief.com

LADOL

TOP 10 CEOs IN AFRICA

The wider impact of Nigeria’s sustainable development hub

Connecting communities THE STORY OF OPENSERVE’S PROCUREMENT REVOLUTION

McDonald’s

Driving an IT transformation  ishal Ragoobeer, IT Director for N McDonald’s SA, is wasting no time in delivering technology change


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ven the world’s biggest companies aren’t shielded from the disruptive digital forces reshaping the business landscape. Kicking off a stellar August issue of our Africa edition of Business Chief is an exclusive feature on technology transformation at McDonald’s in South Africa, a new strategy steered by our interviewee, IT Director Nishal Ragoobeer. Though he’s been in the job for just 18 months, Ragoobeer has already implemented a range of eye-catching initiatives at the world-renowned burger chain – to find out more, turn inside. Elsewhere this month, we uncover the economic benefits the Lagos Deep Offshore Logistics Base, known as LADOL, is having not just in Nigeria but on the entire continent. Olivia Minnock spoke to Dr. Amy Jadesimi, CEO and Managing Director, for our latest leadership insight. Port Louis, the capital of Mauritius, falls under the spotlight in our City Focus section while August’s Top 10 brings you the highest-ranked CEOs in Africa. Finally, our exclusive digital reports boast interviews with, on top of McDonald’s SA, AB InBev, Constance Hotels and Resorts, Openserve, PERI SA and Zanaco | – all involving in-depth discussions with top executives and industry experts. We hope you enjoy this month’s magazine – if you have any feedback, catch us across social media: @Business_Chief.

E

Enjoy the issue!

a f r i c a . b u s i n e s s c h i e f. c o m

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F E AT U R E S McDonald’s SA

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A sustainable development hub for West Africa

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36


City Focus

PORT LOUIS 46 56 Top 10 CEOs in AFRICA


CONTENTS

Commercial 64 Zambia National Bank

76

Exxaro Resources

Constance Hotels & Resorts

110


128 Peri SA

88 Openserve 142

AB InBev


Driving an IT transformation at McDonald’s SA 08

Nishal Ragoobeer was brought into McDonald’s SA less than 18 months ago, but is already spearheading an IT turnaround WRIT TEN BY

JA MES HENDERSON PRODUCED BY

M A LVERN K ANDEM WA

AUGUST 2018


TECHNOLOGY

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a f r i c a . b u s i n e s s c h i e f. c o m


MCDONALD’S SA

N

ishal Ragoobeer is a man in a hurry: less than 18 months into his spell

as IT Director at McDonald’s South Africa (SA), the number of initiatives he has rolled out or is currently implementing befits a man who has been in the job a great deal longer. Tasked with the remit of turning around the fortunes of the company’s IT team, Nishal had no time to relax into his new position, spending a few months getting his feet 10

under the table. One of his first actions was to upgrade the pointof-sale (POS) system, from NewPOS 3 (NP3) to NewPOS 6 (NP6), which has seen a lift in sales contributions. In March 2017, 240 restaurants operated the NP3 system, with just 10 running the NP6 system. Now, that has been turned on its head with just twenty three (23) sites running NP3, and two hundred and thirty seven (237) running NP6. By the end of August 2018, the entire restaurant base of two hundred and sixty (260) would be running the NP6 system.

AUGUST 2018


TECHNOLOGY

“I have a number of targets; one is to build the leading Quick Service Restaurant IT team in the country, and I’m convinced in five years McDonald’s South Africa will have it.” — Nishal Ragoobeer, IT Director at McDonald’s South Africa

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MCDONALD’S SA

In addition, in what is arguably the most significant project rolled out by Nishal and his team – which has grown from Zero (0) when he arrived to a current figure of one hundred and forty (140) and counting – is the introduction of self-ordering kiosks (SOKs), which are now operational in forty five (45) restaurants across South Africa, with plans to install them in eighty percent (80%) of restaurants by 2020.


TECHNOLOGY

Also known as New Generation Kiosks (NGK), the technology allows customers to peruse and order their food from large touch screens, usually positioned close to the area in which patrons enter the restaurants. They have proven to be a real hit so far, with stores reporting a 4-8% climb in sales where the NGKs are used. The SOKs have also proved an attractive proposition for franchisee owners and a useful tool for McDonald’s to persuade its franchisees to invest in its new technology offerings – something Nishal says

“We had a situation in June where the data showed us we were having a really flat day, so we pushed out a voucher through our mobile app. In just one day we saw 20,000 redemptions” — Nishal Ragoobeer, IT Director at McDonald’s South Africa

“requires a fair bit of negotiation”. “Being a franchisee means putting down a lot of money and being comfortable knowing that the return on that investment can be three or four years, so I’m conscious of going back to them and constantly asking them to invest more. What was important with

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MCDONALD’S SA

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Picture: RapidEye

Click to watch: ‘TV Host and Radio DJ, Cyprian Ndlovu shows us a thing or two about keeping his cool when the heat is on! #MomentsInBetween’

AUGUST 2018


TECHNOLOGY

20,000 Number of redemptions achieved by mobile app in one day

237 Number of restaurants running NP6 point-of-sales system

the SOKs was getting them into the corporate-owned stories, proving the results and then pushing them into the pilot franchisee stores,” he comments. “They have seen the benefit and have

200+ Number of selfordering kiosks operational in South African restaurants

been keen to talk about how they have seen an uplift in sales. That caught the imagination of a lot of the other franchisees, which is when we’ve been able to explain that if they want to roll this technology out in into their stores, they also have to sign up to some other upgrades, such as Digital Menu Boards, NP6 Upgrades, etc.” a f r i c a . b u s i n e s s c h i e f. c o m

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MCDONALD’S SA

In a joined-up digital world, Nishal has

“This is a platform our Chief Market-

made it clear that McDonald’s has to be

ing Offer has pushed for aggressively,”

“obsessed” with its customers and use

he comments.

technology to stay ever closer to them. In

“We had a situation in June where the

that spirit, McDonald’s has launched its

data showed us we were having a really

own mobile app, where it can push out

flat day, so we pushed out a voucher

deals, offers and promotions straight to

through our mobile app. In just one day

the cell phones of its customers.

we saw 20,000 redemptions, which

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AUGUST 2018


TECHNOLOGY

shows that this is a way we can directly

number of stores signed up with Uber

increase sales and bring customers into

Eats grow from zero to 100. Future

our stores.”

e-Commerce developments include,

Complementing these services is a

the roll out of Mobile ordering that ena-

fruitful partnership with Uber Eats, the

bles customers to order ahead of time

ubiquitous delivery service offered by

and pick up from a ‘kerbside’ service.

ride hailing app, Uber. Since September

Further, Nishal has ambitions to install

last year, McDonald’s has seen the

Fast and Better WiFi across all of the

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a f r i c a . b u s i n e s s c h i e f. c o m


MCDONALD’S SA

chain’s South African sites by the end of this calendar year. By any measure, it is an ambitious programme of work, and one Nishal acknowledges is made possible by the corporate and financial might of McDonald’s. “Our competitors won’t be able to keep up with our investment, or the scale in which we are rolling out technology,” he predicts. Nishal is clearly a man on an IT mission; backed by one of the world’s most successful busi20

nesses, he seems confident when mapping out some of his future goals for McDonald’s and his team.

AUGUST 2018


TECHNOLOGY

“I have a number of targets; one is to build the leading Quick Service Restaurant IT team in the country, and I'm convinced in five years McDonald's South Africa will have it. Another is to attract the top, most innovative talent in the IT industry in South Africa. And the third and most important one, is to rebrand us so that we're no longer an IT team, we're a Technology team. “Why is that important? An IT team has a traditional connotation that you are only skilled with information technology (can fix computers and servers), but it's no longer information technology. It's digital technology, it's information technology, it's customer technology, and it’s supply chain technology. It's a whole bunch of things that have evolved, and just by virtue that we change and rebrand to a technology team means we can serve a broader spectrum of the business.”

Picture: YAOINLOVE

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L E A D E R S H I P S T R AT E G Y

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A sustainable development hub for West Africa WRITTEN BY

OLIVIA MINNOCK

Dr. Amy Jadesimi, CEO and Managing Director of LADOL, discusses what services are available for business in the Nigerian free industrial zone and how this can contribute to the African economy and to the world

AUGUST 2018


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L E A D E R S H I P S T R AT E G Y

L

agos Deep Offshore Logis-

to returning to the finance giant, but

tics Base, known as LADOL,

decided to travel to Nigeria instead.

is an industrial free zone,

“I’m from Nigeria, but I didn’t grow up

which not only provides much-needed

here, so I wanted to come back for a

facilities for businesses in industries

few months and see what the environ-

from oil and gas to manufacturing, but

ment was like.”

also contributes to the economies of Nigeria and Africa as a whole.

26

Jadesimi then got involved with LADOL. “In 2004, construction was

With Nigeria tipped to be Africa’s

just starting in the free zone and I got

largest economy as well as the world’s

stuck in immediately with fundraising

third most populous country by 2050,

and the financial side… over time, I got

LADOL is attracting business due to its

more involved in the company.” By

prime location and fully managed ser-

2009, Jadesimi had taken over as

vices that make setting up shop a

Managing Director. “It’s been a really

breeze on the offshore base.

great experience. I feel very privileged

CEO and Managing Director Dr. Amy

to be involved in a project like this with

Jadesimi is passionate about the

so much work satisfaction. It’s a huge

impact such investment can have on a

challenge – there are many different

localised scale and, since taking over

things I take care of, but I enjoy that,

the leadership of LADOL in 2009, has

especially as I’m able to communicate

enjoyed managing a wide range of

with so many different kinds of people.

resources for industry. Working under pressure is second

“I developed the ability to be able to tell when something is wrong and I

nature to Jadesimi, since she initially

think any managing director, especially

studied medicine at Oxford University

in a company like LADOL, knows it’s

before being given the option to work

important to see problems before

for Goldman Sachs or carry on as a

working together to find a solution. A

surgeon. “I went to work at Goldman

lot of management in a high-growth,

and enjoyed it so I ended up staying for

low income country is about being a

three years,” she recalls. Jadesimi then

self-starter,” she adds. “On the other

attended business school with a view

hand, the impact you can have here in

AUGUST 2018


“We need industrialisation to take place across Africa, and we have to do it in a new way. We’re bringing in the best technologies to sustainably industrialise our country and hopefully the continent” — Dr. Amy Jadesimi, CEO and Managing Director, LADOL 27

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L E A D E R S H I P S T R AT E G Y

Nigeria is second to none. The oppor-

engineering is done in the sector, while

tunities you have to leapfrog and to

putting Nigeria on the path to being a

create solutions that are best in class

hub for those factories in Africa.”

is unmatched anywhere in the world.”

LADOL is a sustainable industrial free zone, which provides a plethora of

Impact of LADOL LADOL is making a difference not just

facilities for the sector. “From an industrial perspective, we

in Nigeria, but to an entire region and

began by increasing the level of local

industry. “LADOL is really changing the

industrialisation in the biggest industry

way oil and gas gets delivered, and

in Nigeria, which is oil and gas,” Jades-

now we’re hoping to make the same

imi explains. LADOL’s logistics base

impact on the way fabrication and

serves a range of companies in this sec-

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“We’ve now contracted with the biggest offshore operators in West Africa for them to get their logistics services from us. This is partly because of our location and partly because we’ve built this modern, 24/7, fully–integrated facility” — Dr. Amy Jadesimi, CEO and Managing Director, LADOL

AUGUST 2018


tor and is now developing relationships

for our facilities,” Jadesimi recalls.

with other sectors such as agriculture.

“Indeed, we’ve now contracted with

LADOL is also working to halve the

the biggest offshore operators in West

cost of offshore logistics support for

Africa for them to get their logistics

the oil and gas industry, having built a

services from us. This is partly

logistics base which is fully integrated

because of our location and partly

with specialised storage equipment. It

because we’ve built this modern, 24/7,

supplies all services as base developer,

fully-integrated facility.”

from workshops and warehouses to hotels and office space. “When the price of oil fell a couple of years ago, there was a real need

A hub for West Africa “The Nigerian market is very unusual because you have so many untapped opportunities to create tremendous cost savings and therefore generate tremendous local and international work,” explains Jadesimi, adding that energy companies were attracted not only by cost savings, but by the way these are imparted into local contracts. For LADOL, being 100% indigenous to Nigeria is important and means that whatever investment the free zone receives, the local economy benefits over and over again. “We offer the highest levels of local Nigerian contracts, and all that means for oil

Click to watch: LADOL Aerial Views

companies is even more cost savings. Anywhere you have real local contracts, locals providing you with the services at the quality and reliability you require, it’s actually a lot less a f r i c a . b u s i n e s s c h i e f. c o m

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L E A D E R S H I P S T R AT E G Y BIO

‘Power woman’ Amy Jadesimi Amy Jadesimi has been listed among Forbes’

work, I like to think that we can help by publi-

‘Youngest Power Women in Africa’ in 2014 as

cising what myself and other women have

well as winning the Rising Talent award from

been able to achieve, as well as publicising

the Women’s Forum for Economy and Society

how important it is to governments and cor-

in 2013, the Global Young Leader Awards from

porations to have women succeed.”

the World Economic Forum in 2013, and the

Hard work, for any woman, will always be

Desmond Tutu African Leadership Fellow-

the order of the day. “If you want to be suc-

ship Award in 2012. Considering her success

cessful at anything you need to be prepared

in such a male-dominated environment, Busi-

to work hard. If you want to be successful as a

ness Chief couldn’t resist asking if she had any

woman, you have to be able to work hard and

advice for fellow businesswomen.

be extremely brave and strategic. Be brave

As is evident from her role at LADOL, Jades-

enough to make tough choices. The tough

imi has a strong work ethic first and foremost,

choice in this case is the choice society

but also feels it’s important to acknowledge

doesn’t expect.”

opportunities and make the most of them.

Supporting women in the workplace can

“I’ve been extremely blessed to be able to

add tremendously to a country’s economy

make some of the choices I’ve made,” she

and make a visible difference to GDP, as has

says. “My family has always supported my

been shown by various studies. “There is no

choices irrespective of my sex. I wasn’t put

country in the world right now that can afford

under pressure to take on any role which tra-

not to invest in and take advantage of that,”

ditionally applied to women.”

Jadesimi emphasises. “Similarly, with corpora-

However, Jadesimi acknowledges that for

tions, you could increase your bottom line by

many women in the workforce today, this sim-

40% just by supporting women. I think it’s

ply isn’t the case. “Other women in the world

really important to show the economic ration-

are coming into the room at a disadvantage.

ale for those women who don’t have a voice,

You do have to prove yourself – you have to be

an education or other opportunities, so that

‘better than’ in order to be considered ‘equal

we can help them and encourage people who

to’. Thinking about those women who don’t

aren’t giving access to think differently about

have the opportunity to be educated and

what women can contribute.”

AUGUST 2018


expensive than getting those same

Sustainable development

services from outside the country.”

Jadesimi hopes the same faith will be

In addition, LADOL’s shipyard has

shown in Nigeria by more companies

made a tremendous contribution to

and governments. Providing the right

the local economy.

infrastructure for sustainable develop-

“We planned to have heavy industries

ment is key here and something

operating in LADOL from inception, so

LADOL has done proactively. “One of

we needed a facility that could support

the biggest barriers to Nigeria being

the highest crane

able to export agri-

capacity in Africa in

cultural products is

order to move struc-

lack of storage

tures in and out. The

facilities like cold

government pre-

storage,” she out-

dicts the shipyard

lines, adding that

will create between

this is something

30,000 and 50,000

LADOL can now

jobs directly and

provide.“We need

indirectly. Shipyards

industrialisation to

have a 10x multiplier

take place across

effect on job crea-

Africa, and we

tion. So far, the

have to do it in a

shipyard along has

new way.

created about 1,000

We’re bringing in

jobs, with 500 jobs outside the ship-

the best technologies to sustainably

yard in the free zone.”

industrialise our country and hopefully

LADOL built the shipyard – the largest

the continent.” Jadesimi emphasises

of its kind in the world – with support

that sustainability isn’t just a ‘green’

from French multinational oil and gas

buzzword, but rather outlines changes

company, Total. “Total showed a tre-

and growth that can continue for years

mendous amount of faith in LADOL

to come. “It means deploying technol-

and in Nigeria,” Jadesimi comments.

ogy. It means diversity in employment. a f r i c a . b u s i n e s s c h i e f. c o m

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L E A D E R S H I P S T R AT E G Y

It means looking at value assessed

opment Commission (BSDC) which

collaboration for mutual benefit.

follows the United Nations’ 17 Sustain-

“Sustainability encompasses an understanding. You have to have a

“We put together a report that dem-

new relationship between countries

onstrated the businesses that are

and companies, local and multinational,

sustainable and operate in line with

that are embedded in an understand-

the 17 SDGs, are more profitable than

ing that success means mutual benefit.

those that don’t.”

If you’re a foreign company you’re helping

According to Jadesimi, the BSDC

create jobs in Nigeria and helping to grow

has been instrumental in highlighting

the middle class. You’re helping to

two key points: “One is the fact that

make sure our vast population contrib-

there are these opportunities in coun-

utes positively to the global economy.”

tries like Nigeria, and if you don’t go

Jadesimi is an active member of 32

able Development Goals.

the Business and Sustainable Devel-

AUGUST 2018

after them you’re not going to be a viable company much past 2030. The


other thing is that in order to tap into these opportunities, you need to tap into the local private sector. At LADOL, we have to make investments ourselves so we can attract investment from the outside. Work must be done on both sides and I feel that organisations like the BSDC really help push data and information and encouragement to both sides to do that work.”

Onward and upward Jadesimi is keen to emphasise how the LADOL zone will contribute to

“I think any managing director, especially in a company like LADOL, knows it’s important to see problems before working together to find a solution. A lot of management in a high-growth, low income country is about being a self-starter” — — Dr. Amy Jadesimi, CEO and Dr. Amy Jadesimi, Managing Director, LADOL CEO and Managing Director, LADOL

Nigeria’s growing population, but also

33

to the industrialisation of Africa and to the global GDP in years to come. “You don’t have to build a LADOL

LADOL which will be open in the first quarter of next year, covering a wide

in every country in West Africa – in fact,

range of skills,” Jadesimi explains.

it’s unlikely any other country could

“We will use a campus model and

afford a LADOL. Because we have

focus more on skillsets needed inside

made the investment in Nigeria, you

the free zone initially, but then look to

don’t have to. It will be more advanta-

build up skillsets outside as well.

geous to work with us as a regional

“Much like universities and business

hub and a lot cheaper than sending

schools, we’ll have career services

things to the other side of the world.”

where we’ll keep track of the people

Currently, LADOL is working to

that go through the school so we can

upskill and provide career development

help them build careers, which unfor-

opportunities for staff, which in turn will

tunately for many people in Nigeria is

afford the business leading employees.

not something they’ve had the oppor-

“We’re building up an academy in

tunity to do before.” a f r i c a . b u s i n e s s c h i e f. c o m


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HAVE YOU SEEN OUR OTHER TITLES?


TECHNOLOGY

36

Mobile tech for the

underban WRITTEN BY

AUGUST 2018

OLIVIA MINNOCK


Juvo aims to offer financial inclusion for all by creating financial identities and credit history for those in underbanked communities. This has been made possible by the growth of mobile, as Business Chief found out

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TECHNOLOGY

I

n an increasingly digitalised world, a huge proportion of the global population still lacks access to proper banking facilities.

Without the benefit of plastic or mobile apps, building up a digital identity and credit history can be near impossible. “Juvo was founded with a big mission: to establish financial identities for the billions of people worldwide who are creditwor-

thy, yet financially excluded,” explains Aristotle Socrates, Chief Data Officer. “We partner with mobile network operators to reach these billions of people – many of whom are in cashbased economies.” Juvo combines consumer internet, predictive 38

algorithms and modern mechanics to implement a data-science based ‘Identity Scoring’ system to augment a credit score, which would otherwise be decided from the top down, but instead is made via pre or post mobile payments, i.e. from the bottom up. Essentially, Juvo allows people without a credit score to build up a credit history, reaching towards its goal to ‘empower the billions of unbanked people in the world to create financial identities and access financial services’. The company’s Identity Scoring service uses a combination of data science, machine learning and mechanics to create identities for those who don’t have a credit history through prepaid mobile accounts, allowing users to build up an identity and use banking options they may not have had before. The company was founded in 2014 and

AUGUST 2018


launched its service publicly in 2016, having since grown from 100mn to 500mn users. The company now employs 70 people and has enabled over 400mn transactions to date, boasting 1mn active subscribers per day. Juvo operates across 25 countries in North and South America, Europe and Asia, working with partners that include Sprint, Telefonica and Deutsche Telekom. “We give consumers the choice, effectively, of being a post-paid user vs a pre-paid user. We save people trips to the top-up station, which saves them time. I think every human being in the world understands the value of time,” Socrates explains.

From astrophysics to fintech Socrates trained as a theoretical astrophysicist but is now becoming more of a technologist. “My general approach to tackling quantitative problems remains strongly informed by my past life as an astrophysicist.” He moved further into the tech space in 2015 when he joined Juvo as Chief Data Scientist. “The field of data science was heating up, and it seemed like a promising place to explore and come up with interesting ideas. After speaking with founder Steve Polsky, I thought Juvo was the best idea I had ever heard, at least in Silicon Valley.” Socrates describes the move as a risk, since Juvo was then just a startup with 10 employees but adds that this was actually a f r i c a . b u s i n e s s c h i e f. c o m

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TECHNOLOGY

a selling point. “I was driven by the idea itself, and the opportunity of being able to create something significant from scratch.” It is clear the data scientist strongly believes in Juvo’s central mission to develop financial service access to the 3bn people in the world who are underbanked. “The only way to accelerate the placement of those people into a modern financial system is by building a credit or financial knowledge base atop of, and across, multiple 40

operators. And that’s effectively what we’re doing.”

Data Science in finance In his role as Chief Data Scientist,

having people with some form of scientific experi-

Socrates has a wide scope of

ence of training – from either academia or a tech

responsibilities. “The term ‘data

company – gives an additional boost in capacity

scientist’ is a bit funny since there’s

in various areas of work and ideation.”

no science without data,” he muses.

Socrates adds that while many companies use

“Data Science means different

data science to support other departments

things at different companies.”

through creating algorithms, Juvo is different. “At

However, Socrates is keenly aware

Juvo, our Data Science function is a lot broader,

that the importance of data scientist

which is understandable given our mission. In

is becoming increasing recognised

addition to our core function, we do some

by many businesses, particularly at

engineering, product management, partnership

a time of rapid digitisation. “Every-

management and even sales and business

one seems to be discovering that

development,” he explains.

AUGUST 2018


“Juvo was founded with a big mission: to establish financial identities for the billions of people worldwide who are creditworthy, yet financially excluded” — Aristotle Socrates, Director of Data Science, Juvo

Mission possible?

the ability generate huge meaningful amounts of

In order to allow users to build up a

transaction data. However, they are limited in

financial identity via mobile, it has

their ability to act on it. This requires data science

been necessary to partner with

to play an organisational role that is relatively

some of the largest telecoms

expansive on the organisational spectrum.” Juvo

carriers in emerging markets. “Our

will further utilise these carriers to build on its

mission is to create a mechanism for

impressive number of subscribers for the future.

generating credit by establishing

“The path is, in my view, quite clear: integrate with

meaningful financial identities for

more mobile network providers!”

mobile phone users in the develop-

Juvo builds up its financial profiles by offering

ing world. That’s a big, difficult and

gradually larger loans. “It’s interesting to

broad problem. Our general line of

understand why mobile network operators don’t

attack is through carriers who have

do this in the same way we do – the simple

a f r i c a . b u s i n e s s c h i e f. c o m

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TECHNOLOGY

answer is risk,” Socrates explains. “We end up taking a tremendous amount of risk on the path of building a credit history for users, at scale. All mobile operators offer small emergency loans, which might cover a single phone call for example, but at Juvo we offer a whole month’s worth of service per loan. Our Data Team was compelled to take this risk to help fulfil the vision and mission of our company: to build meaningful credit. “We really didn’t understand how radical our loan sizes were until well after we’d been offering them for many years,” Socrates admits. “We 42

figured out how to manage this risk after the fact. In the beginning, you’re just trying to make things work!” Juvo’s goal for the future is to expand its service to help financial service providers. “We want to create a financial platform that allows financial service providers to gain access to the transaction histories that we’re building on top of mobile network operators. As I see the problem, the reason the underbanked are underbanked is that in their locale, the data infrastructure required to connect transaction history to capital, is non-existent or seriously inadequate. Right now, we’re working towards constructing a platform that allows end-users and financial institutions to bridge that gap.”

AUGUST 2018


“We save people trips to the top-up station, which saves them time. I think every human being in the world understands the value of time” — Aristotle Socrates, Director of Data Science, Juvo

43

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CITY FOCUS

PORT L City Focus

46

AUGUST 2018


LOUIS In our latest City Focus feature, Business Chief examines the business landscape in Port Louis, the capital city of Mauritius EDITED BY

BEN MOUNCER

a f r i c a . b u s i n e s s c h i e f. c o m

47


CITY FOCUS | PORT LOUIS

L

48

Located some 500 miles east of Madagascar, the paradisaical island nation of Mauritius is home to the booming financial metropolis

of Port Louis. The small island is often ranked by the Index of African Governance as one of the best-run countries in sub-Saharan Africa and Port Louis currently sits at 25 out of 190 in the Doing Business World Rank. This is largely due to being able to incorporate a new business in as little as an hour and commence operations in under a week. Fueled by banks and financial services companies, Port Louis is one of the world’s fastest-growing cities with a population of 149,194. The OECD declared it to be the urban area with the highest standard of living found in Africa. Unlike sub-Saharan Africa, technological infrastructure on Mauritius is excellent and has helped cement Port Louis as the nation’s economic, culAUGUST 2018


‘With a GDP of $25.85bn and close cultural and business ties to India, China, and eastern Africa, Port Louis is a rising star for the intrepid entrepreneur’

49

tural, and political epicentre. With a

port is an integral component of the

GDP of $25.85bn and close cultural

entire country’s GDP.

and business ties to India, China, and

Tourism accounts for 25% of Mauri-

eastern Africa, Port Louis is a rising

tius’ entire GDP and unsurprisingly

star for the intrepid entrepreneur.

also employs a sizable number of residents in the city and surrounding

THE ECONOMY OF PORT LOUIS

areas. Manufacturing also plays a sig-

Home to the largest port facility in the

nificant role in the city’s economy with

Indian Ocean and the only port of

its highest-value exports being

entry and exit in Mauritius, the ship-

clothes, diamonds, frozen fish and

ping and logistics industry

mobile phones.

subsequently employs a significant

The financial industry comprises a

amount of Port Louis residents for

major portion of the economy in Mau-

both skilled and unskilled labor. The

ritius with Port Louis serving as the a f r i c a . b u s i n e s s c h i e f. c o m


CITY FOCUS | PORT LOUIS

financial centre of the country. Between the liberal business regulations, political stability, and the multiple languages spoken in the city, the financial industry has thrived in Port Louis and it is home to the Stock Exchange of Mauritius as a result. More than ten commercial banks serving both domestic and international clients operate in the city as do other financial services like mutual funds, pension funds, foreign exchange dealers, and leasing companies among others. The

50

‘Tourism accounts for 25% of Mauritius’ entire GDP and unsurprisingly also employs a sizable number of residents in the city and surrounding areas. Manufacturing also plays a significant role in the city’s economy with its highest-value exports being clothes, diamonds, frozen fish and mobile phones’ AUGUST 2018

Bank of Mauritius is both the nation’s central bank as well as one of the major employers in the area. Mauritius was initially a low-income country with an agriculture-based economy and


51

Currency

MUR ₨ 1638

Founding year

149,194 City Population

has quickly developed into a diversified middle-income economy over the last 50 years, with Port Louis experiencing consistent year-over-year economic growth. The local economy is dominated by the financial sectors and the port, with tourism and manufacturing also comprising

Nearest airport

50km

Sir Seewoosagur Ramgoolam International Airport

significant segments. Technology, renewable energy and healthcare fields are also successfully starting up in the city. a f r i c a . b u s i n e s s c h i e f. c o m


CITY FOCUS | PORT LOUIS

COMPANIES IN PORT LOUIS 52

BANK OF MAURITIUS

institution in Mauritius. The bank oper-

The state-owned bank is the country’s

ates in three clusters of banking,

central financial institution, one of the

non-banking financial services and

city’s largest employers and issues the

other investments. MCB operates

local currency, the Mauritian rupee.

along the east coast of Africa in Mada-

Bank of Mauritius once operated as

gascar, Maldives, Mozambique and

three separate commercial banks

Seychelles as well as Paris through an

modeled after the Bank of England,

associate. MCB finances trades

which are now defunct.

throughout sub-Saharan Africa and is also engaged in the Indian market.

MAURITIUS COMMERCIAL BANK (MCB)

AIR MAURITIUS

MCB is a commercial bank licensed by

Air Mauritius is the flag carrier airline of

the Bank of Mauritius and headquar-

Mauritius and the fourth largest air car-

tered in Port Louis. With over 40

rier in sub-Saharan Africa, as well as a

branches and 2,950 employees, MCB

Vanilla Alliance member. The airline

is both the largest and oldest financial

employs over 2,300 people and won

AUGUST 2018


the Indian Ocean Leading Airline Prize issued by World Travel Awards for nine years running. The airline’s headquarters are in Port Louis at the Air Mauritius Centre where people work in predominantly administrative roles. Air Mauritius generated €509.6mn in its last fiscal year and is considered a carrier of note in the Indian and European markets. IRELAND BLYTH LIMITED (IBL)

IBL is the second largest conglomerate in Mauritius with annual turnover of $467mn. Representing more than 200 brands with 6,000 employees, IBL operates in financial services, logistics, retail, seafood and other sectors of the Mauritian economy. The group is headquartered in Port Louis in large part due to the port. ESSAR ENERGY

Part of the India-based Essar Group, Essar Energy is an energy company headquartered in Port Louis with interests in both power generation and petroleum. While Mauritius is ahead of other sub-Saharan nations as far as technology is concerned, energy access on the island remains an issue and Essar’s plants and refineries are predominantly located in India. The company is a major employer in the city, with high employment in corporate and administrative roles. a f r i c a . b u s i n e s s c h i e f. c o m

53


EAST AFRICA

DIGITAL

CONSTRUCTION 2018

14-15 NOVEMBER 2018, NAIROBI, KENYA

Vaughan Harris

Executive Director BIM Institute, South Africa

Marius Mostert Technical Principal, Urban Development SMEC, South Africa

Mairura Omwenga

Chairman Town and County Planners Association of Kenya (TCPAK)


ORGANIZED BY:

KEY HIGHLIGHTS: • SPEAKER PRESENTATION: Uptake and application of BIM | Digital Disruption in Construction In • ROUND TABLE SESSION: Is East Africa on the bus to Digital transformation? • GLOBAL CASE STUDY: Impact of 3D clash detection in the largest multidisciplinary project

• TELECOM PERSPECTIVE: Implementing Cloud and ERP solutions right at the design stage • FINANCE PERSPECTIVE: Capital Projects in a Digital Age • NEED OF THE HOUR: Smart Town Planning and Development

DIGITAL TRANSFORMATION LEADER:

SILVER SPONSOR:

SUPPORTED BY:

MEDIA PARTNER:

For more information, contact

E: mohor@saifee-events.com Website: www.saifee-events.com


T O P 10

56

Top 10 CEOs in AFRICA IN THIS MONTH’S TOP 10, BUSINESS CHIEF PROFILES THE LEADING CHIEF EXECUTIVE OFFICERS FROM ACROSS THE CONTINENT E DI T E D BY

AUGUST 2018

B E N M OU NCE R


57

a f r i c a . b u s i n e s s c h i e f. c o m


T O P 10

09

Robert Collymore $2.7mn Net Worth

Robert Collymore is the Guyana-born CEO of Kenya-based Safaricom, an international telecommunications company. Safaricom is the leading mobile network operator in Kenya

10

Divine Ndhlukula N/A Net Worth 58

employing over 5,000 people and generating $2.1bn in annual revenue with more than 25.7mn subscribers. Safaricom launched the very first mobile phone payment method M-Pesa and

Dr. Divine Ndhlukula is the founder

was originally a department of the

and CEO of DDNS Security Operations,

state-owned Kenya Post and Telecom

the holding company for Zimbabwe-

Corporation before converting to a

based SECURICO. SECURICO offers

public company. Collymore’s net

bespoke guard services, electronic

worth is approximately $2.7mn and he

security solutions, armored vehicles,

resides in the UK.

and other security resources the Zim-

www.safaricom.co.ke

babwean market had been lacking. SECURICO employs over 4,000 people and generates $13mn in revenue annually. Dr. Ndhlukula was deemed Forbes’ most successful woman in Africa in 2012. Her net worth has not been published despite making the top 50 richest people in Zimbabwe list several times. www.divinendhlukula.co.zw AUGUST 2018


07

James Mwangi $170mn Net Worth

James Mwangi is the CEO of Equity Group Holdings Limited, the Kenyan banking conglomerate with the largest customer base on the African continent, one that exceeds eight million customers, 6,000 employees and $189mn in annual revenue. Working as a certified public accountant prior to entrepreneur-

08

Adewale Tinubu $15mn Net Worth

ship, Mwangi became CEO of Equity Building Society at just 31. His family is one of the wealthiest in Kenya, with his

59

net worth sitting upwards of $170mn. He also serves as the chairman of

Adewale Tinubu is the CEO/group

Kenya Vision 2030.

chief executive of Nigeria-based

www.equitybank.com

Oando PLC, Africa’s leading indigenous oil and gas company. Oando is valued at $7bn, employs over 1,000 people and generates $742.5mn annually. It is Nigeria’s largest energy gas, lubricants and oil. With a net worth exceeding $15mn, Tinubu was deemed “The King of African Oil” by Forbes and Ernst & Young’s West African Entrepreneur of the Year. www.oandoplc.com a f r i c a . b u s i n e s s c h i e f. c o m

James-Mwangi - Author: Dennomarshar, WIKI: CC BY-SA 4.0

company with interests in petroleum,


T O P 10

05

Maria Ramos

$28.2mn Annual Salary Maria Ramos is the Portuguese-born CEO of Absa Group Limited, a Johannesburg-based financial services

Reginald Mengi $400mn Net Worth 60

bank. The Absa Group operates across ten African nations serving more than 15mn customers and is now a subsidiary of Barclays with almost 40,000

Reginald Mengi is the CEO and

employees and $5.4bn in annual reve-

founder of the IPP Group, one of

nue. Ms. Ramos has made Forbes’

the largest and most powerful media

Power Women list and Fortune maga-

conglomerates in Africa. The IPP

zine’s annual survey of the 50 most

Group owns 11 newspapers, radio

powerful women in business for several

stations, TV stations and other digital

years running and serves as the current

media and intellectual properties.

Chairman of the Banking Association of

Dr. Mengi also owns IPP Resources,

South Africa. She is one of the highest-

which mines precious metals, Bonite

paid banking executives in Africa with

Bottlers, and Kilimanjaro bottled water,

a salary of R37.6mn ($28.2mn).

which is his native Tanzania’s best-

www.absa.africa

selling bottled water brand. Dr. Mengi’s net worth is approximately $400mn and he is one of Tanzania’s most-vaunted philanthropists having founded The Rodney Mutie Foundation which pays for heart surgeries for children in his native country. www.reginaldmengi.com AUGUST 2018

Maria Ramos - World Economic Forum Annual Meeting Davos 2010, Flickr: CC BY-SA 2.0

06

conglomerate and South Africa’s largest


03

Strive Masiyiwa $1.7bn Net Worth

The founder and chairman of Zimbabwe-based global telecommunications group Econet Wireless, Strive Masiyiwa the richest man in Zimbabwe with a net worth of $1.7bn. Econet’s telephony license was granted when most of

04

Femi Otedola $1.5bn Net Worth

Zimbabwe still did not have phone service and Masiyiwa was one of the first innovators to use mobile devices for making cash transfers with EcoCash in 2005. Econet has evolved and grown

Femi Otedola is the chairman of Forte

to providing wireless and mobile services

Oil PLC, formerly the chairman and

and the company’s annual revenue is

CEO of Africa Petroleum, which later

$3bn and it employs more than 5,000

rebranded to Forte Oil. Forte Oil gener-

people. Masiyiwa is renowned for his

ates $268mn annually in petroleum, jet

philanthropy and cultivating the next

fuel, lubricant and gas cylinder produc-

generation of African entrepreneurs.

tion with 400 employees, headquarters

www.econetwireless.com

in Nigeria and operations in Ghana. Prior to going into the petroleum trade, Otedola established the investing resources CentreForce and owns Swift Insurance. He has a net worth of $1.5bn and formed a scholarship program in 1985 that has benefited more than 1,000 students. www.forteoilplc.com a f r i c a . b u s i n e s s c h i e f. c o m

61


T O P 10

03

Patrice Motsepe $2.5bn Net Worth

Patrice Motsepe is the founder and chairman of South Africa-based African Rainbow Minerals, a mining operation that2. employs over 24,000 people. African Rainbow Minerals generates $722mn annually. Motsepe has frequently been named the richest man in South Africa with an estimated fortune of $2.5bn. He also owns the Mamelodi Sundowns football club, has committed to the Giving Pledge, and is the non-executive chairman of Harmony Gold, the world’s 12th largest mining company. 62

www.arm.co.za

AUGUST 2018


63

01

Alhaji Aliko Dangote $14bn Net Worth

Aliko Dangote is among the most well-known African CEOs whose net worth exceeds $14bn as of 2018, making him the African continent’s richest man. Dangote is the chairman and CEO of the Dangote Group, which trades in sugar, cement, rice, and other commodities in Dangote’s native Nigeria and other West African countries. The Dangote Group is West Africa’s largest industrial conglomerate with over 30,000 employees and $4bn in annual revenue. www.dangote.com a f r i c a . b u s i n e s s c h i e f. c o m


Zambia

Bank

64

National Commercial

AUGUST 2018


TECHNOLOGY

65

embracing technology in a digitally enabled world WRIT TEN BY

DA LE BENTON PRODUCED BY

JUS TIN BR AND

a f r i c a . b u s i n e s s c h i e f. c o m


Z A M B I A N AT I O N A L C O M M E R C I A L B A N K ( Z A N A C O ) P L C

Through a digital transformation strategy, Zambia Commercial National Bank continues to serve the technologically enabled banking customer

T

he global banking

make IT far more central to the

industry is changing.

strategic direction of the bank,”

As technology

says Frank Banda, Head of IT.

continues to redefine the very

66

“As the industry becomes

nature of the financial space,

increasingly dictated by

with more and more customers

technology, there has to be

moving away from the physical

a greater code of alignment

banking of the past, companies

between IT and the business, so

and financial institutions must

that it moves away from being

adapt and innovate with this

just a support function and becomes more

changing landscape in order to

of a partner to the business.”

continue to be successful.

Banda, having successfully worked in

In this ever-evolving digital

Information and Technology in the Zambian

world, the responsibility of the

banking sector for a number of years, has

IT function has never been

seen first-hand the transformative nature of

more crucial. This is most

the industry and recognises that the key

certainly the case for Zambia

driving force behind any IT transformation in

National Commercial Bank

banking will always be the customer.

(Zanaco), as the company

The modern-day customer is more

looks to completely reimagine

technologically empowered than ever before

its IT and technology infra-

and expects the same level of service, access

structure in order to better

and functionality from all of the companies

serve the modern banking

and business they engage with.

customer. “It’s part of my strategy here to

AUGUST 2018

“They are asking for improved ways of banking, new products and new levels of


TECHNOLOGY

“As the industry becomes increasingly dictated by technology, there has to be a greater code of alignment between IT and the business, so that it moves away from being just a support function and becomes more of a partner to the business.” — Frank Banda, Head of IT

a f r i c a . b u s i n e s s c h i e f. c o m

67


Z A M B I A N AT I O N A L C O M M E R C I A L B A N K ( Z A N A C O ) P L C

efficiency,” says Banda. “And with that we have to rethink how we operate. What was a successful model a few years back has become almost entirely obsolete, and so the bank set it upon itself to become more innovative, more responsive and agile to meet these growing demands.” Zanaco is currently undergoing a significant digital transformation, targeting a full implementation of a new digital bank by 2020. Traditionally, technology has always 70

been implemented across the bank as a means of increasing the

“It’s about working closely with all of our partners to help take our solutions development to the next level so that those solutions continue to be ones that customers demand and enjoy.” — Frank Banda, Head of IT

profitability as opposed to working in unison with the growth journey of the wider organisation. When attempting to create a far more aligned organisation there can be challenges. Banda readily admits that, with an extensive career in the technology space, the key challenge for him and the company is one of communication. “Integrating technology to the business where people may not be as well versed as to the benefits and the functionalities of technology, you have to tailor the way in which you

AUGUST 2018


TECHNOLOGY

communicate the core message,” he says. “And that’s a continuous challenge. To try to really understand the direction of the business and to develop solutions that can help move people, and the business, forward.” In any technology transformation, the role of the employee and the people across the entire organisation cannot be understated. After all, the right technology to drive a business forward needs to have the right person behind it. This is something that Banda recognises and invests a great amount of time in fostering, personally retraining himself on a regular basis in order to be able to be the right man in charge. Part of Banda’s core mission is to align not only the technology, but the people and the teams to a single business led vision. He notes that a company needs its people to grow with it in order to continue to deliver solutions and services that the ever-changing customer is demanding. To that end, Banda has worked to create what he feels is an environment that provides the right level of challenges for the team to create a culture of innovation. Ultimately, this is dictated by the customer. “The customer of today wants efficiency

a f r i c a . b u s i n e s s c h i e f. c o m

71


Z A M B I A N AT I O N A L C O M M E R C I A L B A N K ( Z A N A C O ) P L C

and reliability,” says Banda. “They want to be able to perform a

look specifically at the in-house

transaction in a quick and efficient

development of solutions for

manner. No queuing, no waiting.

customers but we also work with

That for me is a market that invites

vendors to help us develop new

challenge from a banking perspec-

solutions for the business.”

tive, and so we must rise to that challenge.” Zanaco’s transformation is to

“It’s about working closely with all of our partners to help take our solutions development to the next

serve a wider business strategy, to

level so that those solutions

be the bank of choice in Zambia.

continue to be ones that customers

The company is already a leader in

demand and enjoy.”

the market, but Banda knows that it 72

“We partner with some vendors to

With technology and the

has to innovate in order to continue

digitisation of business, organisa-

to be a leader.

tions such as Zanaco cannot reach

This will be achieved through the

an “end point” and then stop.

implementation and delivery of

Technology will continue to evolve

cutting edge solutions for custom-

and so too must Zanaco, so the

ers, including the launch of a mobile

goals set for 2020 will not be the

banking application earlier this year

same goals for 2021 and beyond.

as well as a number of in house

The journey was an initial

solutions to become far more agile

three-year plan and as we approach

and responsive to the market.

the midway point of 2018, one and

A key component of this is the

a half years in, Banda looks at this

bank’s vendor management strategy.

year as a year of laying down the key

“We align ourselves with a number

foundations for the future growth of

of vendors at different levels and

the business.

through our transformation, both

“We’re sitting in a great space right

internally and on an external basis,”

now. A lot of our energy in the first

says Banda.

year was focused on revamping

AUGUST 2018


TECHNOLOGY

BIO

Frank Banda — Head of IT Frank Banda is currently the Head of Information Technology for ZANACO, the biggest bank in Zambia in terms of customer base and branch network, he has over 11 years’ work experience in IT, his experience spans across all the different domains of technology, he has been with ZANACO for 7 years where he has played pivotal role in ensuring that the bank provides quality service to its large client base, before joining ZANACO, Frank worked for Ecobank Zambia where he led the implementation of core IT services and infrastructure for the bank. He is very passionate about technology and digital transformation, especially the role that technology plays in making a difference to people’s lives. He is currently leading the digital transformation journey from technology support standpoint for ZANACO. Frank Holds a Bachelors in Science degree in Computer Networks, MSc in Information Security & Computer Forensics both from University of East London. He has certifications in IT governance, ITIL and Project Management.

73

a f r i c a . b u s i n e s s c h i e f. c o m


Z A M B I A N AT I O N A L C O M M E R C I A L B A N K ( Z A N A C O ) P L C

our in-house applications and systems and honing our skills as a team,” he says. “This year we have brought on board our mobile app and are now revamping our internet banking platform for our Corporate and Retail clients, both of which are really setting us up nicely to hit those initial 2020 goals.” Eyes inevitably will turn to beyond 2020 and Banda confirms as much, recognising the need to continue to prepare for whatever the 74

future holds for the banking industry in Zambia. “The future for us will be defined by keeping our ears close to the ground in order to constantly evolve with the evolving market trends,” he says. “While our we will continue to innovate and continue to push our solutions to remain at the forefront of technology, ultimately it’s about making our customer happy. “We want to be the bank of choice in Zambia, consistently, for many years to come.”

AUGUST 2018

“While we will continue to innovate and continue to push our solutions to remain at the forefront of technology, ultimately it’s about making our customer happy.” — Frank Banda, Head of IT


TECHNOLOGY

75

a f r i c a . b u s i n e s s c h i e f. c o m


76

legacy Creating a mining

WRIT TEN BY

DA LE BENTON PRODUCED BY

M A LVERN K ANDEM WA

AUGUST 2018

in South Africa


TECHNOLOGY

77

y a f r i c a . b u s i n e s s c h i e f. c o m


EXXARO RESOURCES

Over the last decade, Exxaro Resources has empowered its people and fostered a collaborative culture to become a vital influence on South Africa’s mining industry

I

n November 2006, two leading coal companies in South Africa came together to create Exxaro Resources.

Over the course of the last 12 years, the company has become one of the largest and foremost black-empowered coal and heavy mineral companies in the country. The company’s key strategic vision is centred around going above and beyond simply existing 78

as a leading mining organisation; it strives to make a positive impact on the world and power better lives in Africa. Exxaro’s portfolio has significantly grown to

Black Economic Empowerment (BEE) plays a pivotal role. Through

expand beyond coal. While coal is the compa-

key investments, the company

ny’s biggest produce, with seven managed

empowers its employees to make

mines producing power station, steam and

decisions and drive outcomes

cooking coal, it also produces ferrous metals

through trust-based leadership.

(iron), iron ore, titanium dioxide, wind energy and zinc. Its goal to make a positive impact on the world

Through this, Exxaro provides real tangible benefits and rewards to its employees, fostering a culture

is clearly being realised through the supply of

of “true ownership” that it feels

these resources to “fuel our future.”

enables an entrepreneurial mindset.

In order to deliver on this vision, Exxaro

The company’s mission state-

invests heavily in empowering people, both

ment is “powering possibility” and

internally and externally across Africa.

so it looks to develop employees to

This is where the company’s commitment to

AUGUST 2018

become leaders in the industry and


MINING

79 cultivating change. Exxaro implemented a workplace model at its Corporate Centre called Activity Based Working

faster, more adaptable and driven to deliver the greatest possible results to meet the company’s targets. An empowered workforce is one key

(ABW). This is a model built on trust

component in successfully delivering on its

and places power in the hands of

vision, but as a mining and resources company

the employees in order to foster

Exxaro understands that community and

greater collaboration and a more

partnerships can be and often are the key.

innovative approach to working for the company. This is a two-way discourse and

The company says so itself, recognising that in order to grow and succeed it needs an ecosystem of employees, communities and

so each employee is held account-

partners from all across the

able to perform at the very highest

country to be working towards this shared

standards of their abilities.

unified goal.

Employees are encouraged to be

By collaboratively fostering empowered

a f r i c a . b u s i n e s s c h i e f. c o m


EXXARO RESOURCES

Building the foundation

#UNLOCKEXPERIENCES FOR A CONNECTED FUTURE

Designing Experiences

Driving Business Veloc

Delivering Customer of digital, design and c

80

To know more, log onto https://www.techmahindra.com/unlockexperien AUGUST 2018


TECHNOLOGY

n with Networks of the Future

s with the Internet of Things

city with DevOps, AI and RPA

Experiences with interplay convergence 81

nces.html a f r i c a . b u s i n e s s c h i e f. c o m


EXXARO RESOURCES

82

AUGUST 2018


MINING

‘Coal is after all the country’s second largest earner, providing 6.1% of South Africa’s total merchandise exports’

This code of conduct does challenge suppliers to think about their business, with sustainability and a solid foundation of sustainability best practice being “pertinent” to the company’s strategic objectives. Exxaro believes that suppliers can also provide learnings and greater collaboration moving forward to better deliver on its vision. Despite its broad portfolio of resourc-

communities who can access, and

es, Exxaro is first and foremost a coal

participate in, more socio-economic

mining company. Coal is after all the

possibilities and by investing in initiatives

country’s second largest earner,

that will deliver sustainable societies

providing 6.1% of South Africa’s total

through proactive engagement, deep

merchandise exports. South Africa in

understanding of societal needs, Exxaro

itself contains 11% of the world’s entire

truly delivers on its promise of economic

coal resources with 31bn tonnes of

development and prosperity.

recoverable coal.

When it comes to striking, fostering and

As the leading coal mining company,

developing key strategic partners,

Exxaro’s core projects are strategically

Exxaro applies the same approach. It

located in proximity of the country’s

achieves this through the Exxaro Supplier

highest coal concentrations; Mpumalan-

Code of Conduct, a document that

ga and Limpopo.

communicates certain standards that the

Its seven sites across the country are

company believes are mandatory for

defined by two core principles; to foster

selecting suppliers.

the fuel of the future and to continuously

Suppliers are obliged to conform to this code and Exxaro ensures that its suppliers continue to adhere to it through

increase South Africa’s competitiveness on the global coal stage. Within these seven sites are what

a culture of continuous improvement via

Exxaro defines as “mega projects.”

rigorous audits.

These projects are geared towards

a f r i c a . b u s i n e s s c h i e f. c o m

83


EXXARO RESOURCES

ensuring a more productive tomorrow and are defined by several objectives: to grow the coal business, to expand and increase production volumes in a more sustainable way, plus many more. Such examples of mega projects that Exxaro is currently working on include a R3.3bn 2.2Mtpa Belfast Mine thermal coal resource for Mpumalanga, as well as a R2.9bn greenfield mine that will extract and produce 3.9 Mtpa to serve a 600MW thermal power station. 84

Ground was officially broken on the Belfast Mine in July this year and has been dubbed the “first of its kind digital mine” due to a digital twin that has been created simultaneously. This digital replica is a complete replica of the mine and will allow management and contractors to connect and manage the workload remotely and identify problems in real-time, reducing downtime and increasing the safety of the operation. As an industry first, it’s but another example as to how Exxaro continues to strive for greater

AUGUST 2018


MINING

85

a f r i c a . b u s i n e s s c h i e f. c o m


EXXARO RESOURCES

Taking Digital beyond demo’s. During this time of disruptive change let Deloitte show you how significant and disruptive developments in areas such as IoT, robotics, artificial intelligence, cloud computing, and predictive analytics - can transform your business - by practically guiding you through your digital transformation journey.

Make Digital the linchpin of your business strategy. To explore more on our digital capabilities, visit www.deloitte.com/za/consulting or contact Deloitte Consulting Africa Chief Operations Officer - Coenrad Alberts (calberts@deloitte.co.za) or Client Account Manager - Hester Swart (hswart@deloitte.co.za)

Deloitte Consulting

AUGUST 2018


MINING

‘The mine will create close to 6,000 direct and indirect jobs during construction and the life of the mine’ collaboration, developing a more capable

as an organisation. In an address at the

industry and empowering the workforce

official ground-breaking ceremony,

with new skills and capabilities through

Refilwe Mtshwer, Mpumlanga Premier,

this innovative technology.

recognised Exxaro for its influential role

The mine will create close to 6,000 direct and indirect jobs during construc-

in defining the future of South Africa. “Exxaro Resources, as a proudly

tion and the life of the mine, with almost

South African company, has been

20,000 people benefiting. Overall it is

exemplary and at the forefront of

expected to contribute R39bn to local

reshaping how the mining sector

GDP over the life of the mine.

contributes to nation-building for

Ultimately however, the mine represents everything that Exxaro stands for

the past 12 years. Today is a testament to that.”

a f r i c a . b u s i n e s s c h i e f. c o m

87


Openserve:

The beating heart

of 88

connectivity in

South Africa WRIT TEN BY

L AUR A MULL AN PRODUCED BY

ARRON R A MPLING

AUGUST 2018


S U P P LY C H A I N

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a f r i c a . b u s i n e s s c h i e f. c o m


OPENSERVE

Openserve is Telkom’s redesigned wholesale partner and is a division of the Telkom Group. It is South Africa’s largest telecommunications infrastructure provider with the biggest broadband network

W

hether you’re downloading a report for your business, browsing the internet, or streaming your favourite songs,

connectivity has become a key building block in our day-to-day lives. Championing this technology-empowered, connected future, Openserve has laid down 90

approximately 150,000km of fibre optic cables and connected over 81,000 homes to fibre, making it the largest telecommunication company in South Africa. Though you may not have noticed they were there, Chief Procurement and Contracts Officer, Benjamin van Zyl, believes that it’s often the companies behind the scenes, like Openserve, that are having a big impact in the country. “Openserve is a division of the Telkom Group and it has been instrumental in enabling connectivity across South Africa and its borders,” explains van Zyl. “Our mission is to be the connectivity provider of choice and enable a data-driven ecosystem. For us, it’s been important to drive a performancebased culture where ‘doing what’s right’ for the

AUGUST 2018


S U P P LY C H A I N

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a f r i c a . b u s i n e s s c h i e f. c o m


Our Vision & Mission: Bring digital to every person, home and organization for a fully connected, intelligent world.


Build ubiquitous connectivity

Develop open, trusted cloud plaforms

ICT Infrastructure Intelligent Devices Create a better experience with broadband

Build an experiencecentric device ecosystem

About us: Huawei is a leading global provider of information and communications technology (ICT) infrastructure and smart devices. With integrated solutions across four key domains – telecom networks, IT, smart devices, and cloud services – we are committed to bringing digital to every person, home and organization for a fully connected, intelligent world. Huawei's end-to-end portfolio of products, solutions and services are both competitive and secure. Through open collaboration with ecosystem partners, we create lasting value for our customers, working to empower people, enrich home life, and inspire innovation in organizations of all shapes and sizes.

www.huawei.com/za


OPENSERVE

“Openserve is a division of the Telkom Group and it has been instrumental in enabling connectivity across South Africa and its borders” 94

— Benjamin van Zyl, Chief Procurement & Contracts Officer

client, customer and the company takes precedence over anything else. I am proud to say that we have created a strong foundation to build on.” As the largest fixed wholesale operator in South Africa, Openserve operates across global, enterprise, carrier and consumer market segments. This, of course, means that the company has multiple competitors. Van Zyl says he welcomes the rivalry as it drives the firm to improve and compete with rigour and perhaps nowhere can this be seen better than Openserve’s approach to cost-efficiency. “To survive in a world where the cost of infrastructure is expensive and the price the client is willing to pay is continuously coming down, cost optimisation has been weaved into our business strategy,” notes van Zyl. “Openserve has been very successful over the last few years in reducing costs through workforce optimisation, consolidating the supplier base, reducing the onerous specifications in our contracts and tightening our controls to avoid cost leakage and unnecessary spend. “In all these initiatives, strategic sourcing and contract management play a key role, but it remains a cross-functional team effort to deliver the benefits. Our focus now is on improving our return on investment (ROI) by reducing the capital cost of the value chain in our Metro Ethernet and Fibre to the home (FTTH) deployment.”

AUGUST 2018


INNOVATION FOR TOMORROW In today’s fast paced world, companies need to innovate and adapt to ever changing market needs. At CBi Telecom the development of new products and services are driven by technology trends, the evolution of customer requirements, changing advancements and new market applications.

95

www.cbitele.com Sales: +27 (0) 12 381 1668 Email: sales@cbitele.com


OPENSERVE

Click to watch: ‘How to set up Huawei B315LTE router’

96

In today’s supply chain sector,

would be in our network build environ-

improving visibility continues to rank as

ment, where we are busy creating a

one of the most necessary but

supplier interface portal to manage the

challenging tasks facing procurement

supplier build capacity per region and

professionals today.

ensure optimal work allocation.”

As a listed company, van Zyl believes

Understanding that today’s new

that improved visibility is “absolutely

technologies could be obsolete

critical” to driving efficiencies and

tomorrow, Openserve prides itself on

managing risk.

being agile and unafraid of change. As

“When I joined Openserve, I created a

such, it has spearheaded digital

control tower capability to create

transformation across the company to

visibility in our supply chain, do analytics

remain one step ahead of its competi-

and identify opportunities to drive

tors. Zeroing in on its network and IT

efficiencies,” he notes. “An example

platforms, van Zyl describes how the

AUGUST 2018


S U P P LY C H A I N

BIO

Ben van Zyl has built his expertise as a procurement leader over a twenty-year career; spanning strategic sourcing, procurement and supply chain management for leading financial institutions such as Merrill Lynch, Absa and telecommunications organisations such as Telkom and Openserve. He is an expert in international outsourcing and has used this to ensure the sustainable success of the organisations he’s worked for. His experience covers many disciplines within the purchasing and contract management profession including outsourcing call centres, end-to-end supply chain, facilities management, real estate asset management, shared services, and system maintenance. During outsourcing projects, van Zyl controls the process from business case development and supplier selection to SLAs, contract negotiations and negotiations with unions. The results are significant cost savings coupled with excellent levels of

service. To consolidate his business strategies, van Zyl builds high-performance specialist teams who execute large and complex contracts to specification and within budget and deadline. He thrives in enterprise transformation environments where he translates business aims into a sourcing strategy that delivers the most cost-effective solutions. Van Zyl is currently Chief Procurement and Contracts Officer and he oversees the Supply Chain, Strategic Sourcing, Procurement operations, quality management, Supplier development and contract management for Openserve. He holds a BCompt Degree from the University of South Africa and an MCISP Diploma from the Chartered Institute of Purchasing and Supply.

a f r i c a . b u s i n e s s c h i e f. c o m

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OPENSERVE

98

Services FTTH • FTTB • FTTX PLANNING • METRO ETHERNET • MSAN MICROWAVE VSAT • ITMB CIVIL CONSTRUCTION • TRENCHING • HAULING FLOATING • SPLICING • MAINTENANCE

AUGUST 2018

Construction & Plant Hire (Pty) Ltd Johannesburg, South Africa

Gioconb@global.co.za +27 11 943 1550


S U P P LY C H A I N

“People see digitalisation as a threat as they translate it to job losses, but I see it as an opportunity where it can make our jobs easier, better, faster and more fulfilling” — Benjamin van Zyl, Chief Procurement & Contracts Officer

99

firm aims to create a ‘holistic’

optimise inventory and reduce

approach to digitisation.

working capital. On top of this, it has

“We have introduced digital

also created an innovative control

touchpoints that enable us to monitor

tower to improve supply chain

and secure our network,” he says.

visibility, conduct analytics and

“The Telkom Group is working with

improve efficiency in its supply chain.

SAP Ariba to digitalise the source to

With a next-generation fibre

settle process to free up resources

network, Openserve has provided a

from tactical work. We are also

gateway for communities to

exploring the use of robotics to

connect. However, the company

automate various processes.”

doesn’t underestimate the potential

The South African firm has also

of emerging technologies like

implemented a forecasting and

robotics, machine learning, artificial

planning tool to improve delivery,

intelligence (AI) and automation.

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OPENSERVE

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“The Organisation for Economic Co-operation and Development (OECD) clearly warns that the digital divide will only widen if developing markets don’t seize the opportunities that digitisation will bring. We are therefore excited, but also understand that we must get this right” — Alphonzo Samuels, CEO, Openserve

a f r i c a . b u s i n e s s c h i e f. c o m


WE’LL GET IT DONE!! •

Service Provider in All Telecommunications and Wireless Broadband Solutions.

Road Construction ,Earthworks Plant Hire & Building Material Supplier.

www.mthiyane.co.za

info@mthiyane.co.za

122 Platt Drive, Isipingo 4001

(031) 9026112

NEW LIFE TO YOUR NETWORK End-to-end solutions from microwave to optical transport technology

ALFOplus2 dual carrier microwave radio

LM-1 micro ROADM WSS-less 2 degree ROADM

www.siaemic.com

www.sm-optics.com


S U P P LY C H A I N

The company’s CEO, Alphonzo Samuels, highlights that making the region more connected and digitally-enabled is not only beneficial for Openserve, it could also help to revitalise the economy and improve the region’s quality of living. “Enabling the fourth industrial revolution is something that developing markets absolutely need to get right,” he says. “The Organisation for Economic Co-operation and Development (OECD) clearly warns that the digital divide will only widen if developing markets don’t seize the opportunities that digitisation will bring. We are therefore excited, but also understand that we must get this right. It’s a call to action that is founded on our desire to develop Africa.” To remain agile and adaptive, Openserve has not only invested heavily in its network infrastructure

“For us, it’s been important to drive a performance– based culture where ‘doing what’s right’ for the client, customer and the company takes precedence over anything else. I am proud to say that we have built a strong foundation to build on” — Benjamin van Zyl, Chief Procurement & Contracts Officer

– it has also created long-lasting partnerships that have helped it meet the needs of today’s digital world.

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OPENSERVE

In the past two years, the South African giant has joined forces with companies such as Huawei and Nokia to help provide a high-speed fibre packet and optical transport network. “Under the leadership of our Chief Technology and Systems Officer, Hugo van Zyl, we are implementing an IP-enabled optical transport network – we call it POTN (for Packet and Optical Transport Network),” explains van Zyl. “The POTN establishes an IP enabled optical transmission capability that can scale to meet the demands of the fourth industrial revolution, catering for higher speeds, increased capacity requirements, lower latency requirements and 104

digitalisation of the network fabric. “Fibre deployment remains a key future enabler for end-user connections, as well as small cells in

“To survive in a world where the cost of infrastructure is expensive and the price the client is willing to pay is continuously coming down, cost optimisation has been weaved into our business strategy” — Benjamin van Zyl, Chief Procurement & Contracts Officer

AUGUST 2018

mobile networks. Huawei’s contribution is important, providing this state of the art technology in a dual-vendor scenario. “We also have a long-standing relationship with Mthiyane Construction. They are part of a panel of sub-contractors doing build, maintenance and repair work in different layers of the network. They are important as we need


S U P P LY C H A I N

105

experienced service providers in all parts of the country to build a high-quality network.” Partnerships have also been integral to areas such as supply chain – with Bidvest Fleet, for example, supplying and maintaining over 4500 vehicles used by the company’s technicians. It’s clear that this rich ecosystem of industry partnerships has been integral, a f r i c a . b u s i n e s s c h i e f. c o m


Smart Supply Chain Solutions

Create, Digitise, Connect, Secure Fibre and other networking technologies ensure that more and more African people and businesses are experiencing world-class connectivity. Etion Connect (previously Tedaka Solutions) plays a pivotal role in ensuring that this growth can continue unhindered, thanks to an array of products and solutions which cater to the entire digital value chain. From data centre to end user, we ensure that our customers can build a network that is efficient, reliable, and stable. With our help, installations are faster and more cost-effective, allowing these customers to rest easy in the knowledge that their return on investment (ROI) is secure. The solutions provided by Etion Connect include: • Outside plant closures • Inside plant high density optical distribution frames • Plug and play solutions for harsh environments • Customer end user connectivity • Classroom and in-field training and education In the age of interconnectedness, it is imperative that organisations’ communication systems are stable and effectively connect the value chain. Through its products, solutions, and services, Etion Connect allows organisations to achieve this stability and effective connections. Etion Connect is a part of the Etion Group, which also includes Etion Create, Etion Digitise, and Etion Secure. While each of these units provide distinct services, they are all complementary and capable of providing technology to each other.

www.etion.co.za


S U P P LY C H A I N

2015

Year founded

10,000+ Approximate number of employees

107

helping to ensure that Openserve can

mix is seldom seen and I am excited about

continue to provide a connection,

the unique blend that will take this

wherever its customers are.

company forward.”

Celebrating the company’s collaborative

Openserve has embarked on a radical

approach, van Zyl is also keen to highlight

procurement function and embraced

the efforts of his team, citing their passion

technological innovation. To cement this

as critical to the company’s success.

new-found change, van Zyl outlines how

“What’s unique about Openserve is its people,” he says. “We have highly talented individuals with institutional knowledge as

the company has seen a cultural transformation as well as a digital one. “Transformation always involves a

well as young talent with the zeal to take

change in human behaviour and people

risks and try innovative solutions. Such a

resist change when they cannot see its

a f r i c a . b u s i n e s s c h i e f. c o m


OPENSERVE

value,” he says. “People see digitalisation as a threat as they translate it to job losses, but I see it as an opportunity where it can make our jobs easier, better, faster and more fulfilling. However, you need to be willing to make this culture change as digital transformation involves new skill sets with millennials and baby boomers responding differently to this learning process. Unless our managers, employees and support staff embrace the change of digital transformation, it will fail.” With this cultural change in motion, Openserve is not resting on its laurels. In fact, today it is now striving to become the largest open-access infrastructure 108

connectivity company in South Africa. “We are clear that we want to transform into a Digital Service Provider (DSP) that is able to expose the network as a service through open Application Programming Interfaces (APIs),” explains van Zyl. “This is enabled through the ongoing virtualisation of hardware through NFV (Network Function Virtualisation) and managed through the concept of Software Defined Networks (SDN), truly digitalising our network.” With a rigorous, digitally-enabled plan underway, the South African firm is preparing for the next chapter of its journey. But regardless of any changes, it seems Openserve will unwaveringly remain at the heart of connectivity in South Africa.

AUGUST 2018


S U P P LY C H A I N

FACT

0penserve has supplied over a million DSL connections, laid down over 147,000km of fibre optic cables and connected over 81,000 homes to fibre.

109

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110

Delivering supply chain innovation WRIT TEN BY

CATHERINE S TURM AN PRODUCED BY

ARRON R A MPLING

AUGUST 2018


S U P P LY C H A I N

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C O N S TA TANNCCEE HHOOTTEELLSS AANNDDRREESSOORR TT SS

112

With a passion for hospitality, Gilbert Chetty, Group Supply Chain Manager, discusses how his team works to provide its customers with an unforgettable experience

T

he hotel industry remains

business prides itself on delivering

a fierce platform for budding

world-class experiences in surroundings

entrepreneurs and long-stand-

of pure beauty, instinctively unlocking the

ing corporations. The rise of budget hotels and new business models, like that of

potential of each location. Responsible for the company’s supply

Airbnb, have fully disrupted the way in which

chain operations in the Seychelles, the

the sector seeks to attract new customers,

Maldives, Mauritius, Madagascar and

whether it be through cost-effective

Zanzibar, Gilbert Chetty has witnessed the

pricing, adrenaline focused activities or

brand’s growing popularity across Africa.

the guarantee of timeless experiences.

With the support of his six-strong team,

Providing exceptional services to its

Chetty strives to procure and deliver

guests, Constance Hotels & Resorts

goods at the best value in order to fully

oozes luxury. Situated at a number of

satisfy the needs of its customers.

stunning locations across Africa, the AUGUST 2018

“I am lucky to work with such a talented


S U P P LY C H A I N

“We trust our people, treat them as collaborators, and try to apply the values of the company with them. These are generosity, sincerity and to demonstrate excellence, implementing a blend of innovation and creativity” — Gilbert Chetty, Group Supply Chain Manager 113

group of people who understand our procurement requirements. We trust our people, treat them as collaborators, and try to apply the values of the company with them. These are generosity, sincerity and to demonstrate excellence, implementing a blend of innovation and creativity,” he says. Enabling teams in charge of purchasing at specific regions to source the best prices within a particular region, the team works to negotiate the optimum deals with regards to corporate items. For example, by adopting a linen tender, the Group has standardised the bed and bath


C O N S TA N C E H O T E L S A N D R E S O R T S

linen at an agreed price for a specific period of time. “There are also other group of items that we negotiate for the group. For example, umbrellas, slippers, types of papers to be used for our printings etc.,” notes Chetty.” “We therefore try to combine both decentralised and centralised purchasing for the advantage of our stakeholders.”

Technological shift The Group’s enduring ambition to be an essential figurehead for human scale luxury hospitality has factored into its goal to grow from 9 to 20 hotels , whilst ss its operations. Consequently, the business is set to launch a 114

second brand later this year in the upper-scale segment. “With expansion of the Group and the creation of this second brand situated in different locations worldwide, our procurement will need to adapt to different culture and laws, analysis of the market and eventually consider new sources,” explains Chetty. Situated at the business for over ten years, Chetty has been central to the dynamism which runs through the supply chain operation at Constance, where he has sought to maintain and uphold all required processes, adhering to all compliance laws, as well as remaining consistent with ethical, social and environmental standards. His vast expertise has therefore seen its procurement and supply chain operations become fully transformed, particularly as a result of new technologies. “Technology is now the heart of supply chain management. The business of the industry is problem-

AUGUST 2018


S U P P LY C H A I N

“With expansion of the group and the creation of the second brand, our procurement will need to adapt to different cultures and laws” — Gilbert Chetty, Group Supply Chain Manager

115

solving. New technologies can help personnel to better understand the equipment, manage the decision-making process more efficiently and drive costs down,” he says. “For example, supply chain networks are built on customer demand and cost optimisation. The usage of analytics helps personnel understand behaviours to react quickly to rebalance inventory and adjust transportation. Supply chain management has therefore evolved into a technology-led, customer-driven industry. “To take advantage of this shift, the focus can’t be on just the technology. The right talent equips supply chain management companies a f r i c a . b u s i n e s s c h i e f. c o m


C O N S TA N C E H O T E L S A N D R E S O R T S

with the resources they need to fully leverage connected technologies to improve their business processes.” Harnessing software which will enable the business to utilise multiple foreign currencies, Constance has also adopted cloud technology and blockchain, which will bring the highest degree of accountability to the business. “There will be no more missed transactions, human or machine errors, or even an exchange that was not done with the consent of the parties involved due to the use of 116

blockchain,” he adds.

“There will be no more missed transactions, human or machine errors, or even an exchange that was not done with the consent of the parties involved due to the use of blockchain” — Gilbert Chetty, Group Supply Chain Manager

AUGUST 2018

Click to watch: Corporate video for Constance Hotels and Resorts


S U P P LY C H A I N

117

Collaboration

& New Zealand can be included, as

Dealing directly with suppliers in both

Constance Hotels and Resorts’ Group has

local and international markets, the Group

the largest wines cellar in the Indian

has partnered with two renowned

Ocean, namely at Constance Prince

forwarders in the importation and

Maurice, situated on the eastern side of

exportation of various goods. At each

Mauritius island.

location, the business has also appointed

“Additionally, we have a number of

a number of local suppliers to deliver

strategic partners who sponsor the MCB

goods to its hotels.

Tour Championship, a men’s senior

“Our freight forwarders, corporate

professional golf tournament, who also

suppliers in terms of wet and dry ameni-

sponsor each December our annual golf

ties can be considered as our main

tournament which is held on our Con-

strategic partners,” explains Chetty.

stance Legend course.”

“The wine sellers of France, South Africa

With this in mind, Tyre World has

a f r i c a . b u s i n e s s c h i e f. c o m


C O N S TA N C E H O T E L S A N D R E S O R T S

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S U P P LY C H A I N

“Constance Group has the largest wine cellar in the Indian Ocean, namely at Constance Le Prince Maurice, situated on the eastern side of the island” — Gilbert Chetty, Group Supply Chain Manager

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C O N S TA N C E H O T E L S A N D R E S O R T S

FACTS

Situated at a number of stunning locations across Indian Ocean and Africa, CHRG prides itself on delivering worldclass experiences in surroundings of pure beauty, unlocking the potential of each location.

120

Chetty strives to procure and deliver goods at the best value in order to fully satisfy the needs of customers, as well as adhere to company standards. Later this year, the business is set to launch a second brand later in the upper scale segment The Group has adopted cloud technologies, as well as blockchain, to bring the highest degree of accountability. The Group works tirelessly to eradicate child labour from across its supply chain, and regularly undertakes audits, surveys and site visits to guarantee all practices are sustainable Awarded the Green Globe Certificate, the world’s most recognised global certification for sustainable travel and tourism for four consecutive years AUGUST 2018


S U P P LY C H A I N

become a key strategic partner for the business, providing tyres and high-quality buggies for its golf courses. “We have been working with Tyre World for years and have always been satisfied in terms of the products and services offered, mainly after-sales services,” says Chetty. “The company is always prompted to consider new avenues to improve in terms of products offered, as well as in terms of payments and competitive pricing and sponsoring the different events in our group of hotels.”

Sustainable practices While the supply chain consists of not only sourcing services and products at competitive prices, the Group has worked tirelessly to eradicate child labour from across its supply chain and regularly undertakes audits, surveys and site visits to guarantee all practices are sustainable. “One of our key challenges is to become a customer of choice for our suppliers, so that even in difficult moments, such as a cyclone, incorrect forecasting, or any other situation which could impact our operations, we are not faced with any kind of shortage and count upon their prompt reaction,” observes Chetty. “Supplier innovation is more likely if we become a customer of choice. Innovation is a two-way process; however, so we believe that it is not only about writing it in a contract and expecting the a f r i c a . b u s i n e s s c h i e f. c o m

121


C O N S TA N C E H O T E L S A N D R E S O R T S

“New technologies can help personnel to better understand the equipment, manage the decisionmaking process more efficiently and drive down costs” — Gilbert Chetty, Group Supply Chain Manager

RELIABILITY GETS A PREMIUM UPGRADE.

info@tyreworld.mu

Tel: (230) 5941-2831

@TyreworldMauritius


S U P P LY C H A I N

123 best ideas from suppliers. The most

ment and operation of its properties

successful approach is to abide by

in terms of logistics management,

agreed payment terms and

as well as inventory management,

demonstrate a partnership

information technology, procure-

approach by listening and respond-

ment and distribution, lean and

ing to suppliers’ ideas.

green supply chain practices.

“We want to trust and consider suppliers as a centre of excellence in

An authentic passion

terms of inventiveness, reactivity or

Awarded the Green Globe

rather proactive in terms of sourcing,

Certificate, the world’s most

proposing alternatives goods which

recognised global certification for

are in lines with the concept and

sustainable travel and tourism for

standard of our properties.”

four consecutive years, the Group’s

The company’s supply chain team has also focused on the manage-

unwavering commitment to sustainability has increased the its a f r i c a . b u s i n e s s c h i e f. c o m


C O N S TA N C E H O T E L S A N D R E S O R T S

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S U P P LY C H A I N

“The usage of analytics helps personnel understand behaviours to react quickly to rebalance inventory and adjust transportation” — Gilbert Chetty, Group Supply Chain Manager

a f r i c a . b u s i n e s s c h i e f. c o m

125


C O N S TA N C E H O T E L S A N D R E S O R T S

global recognition and attracted new and existing customers. As it continually reviews and improves

“It’s no longer good enough to simply engage with tier-one suppliers. Emphasis needs to be paid to controlling the

its four pillars: environmental, socio-eco-

approach taken with tier-two suppliers,

nomic balance, quality of service and

ensuring that the necessary obligations

health and safety, the procurement team

are passed down to subcontractors,”

at Constance routinely mitigates any

concludes Chetty.

potential risks, looking at its suppliers’

“Our DNA is all about the genuine

financial status, followed by health and

enthusiasm we have for hospitality; as a

safety and industry practices.

matter of fact, it’s where we come from, i.e.,

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AUGUST 2018


S U P P LY C H A I N

our Mauritian heritage. We believe that our

ity market. Our generosity delivers a great

passion allows us to create emotions.

return on investment, as treating guests

“Our personality sets us apart, as our guests like our ‘un bon vivant’ style. People

generously repays more in satisfaction, with loyalty then following.”

who come as guests leave as friends. This family spirit spreads from our team to our guests, and our attention to them makes them want to come back. “I sincerely believe that we are changing the nature of relationships in the hospital-

127

a f r i c a . b u s i n e s s c h i e f. c o m


PERI

READYING SOUTH AFRICAN CONSTRUCTION FOR THE DIGITAL AGE

128

WRITTEN BY

DALE BENTON PRODUCED BY

STUART IRVING

AUGUST 2018

Bringing profound knowledge and innovative construction solutions, PERI looks to navigate the digital revolution of South Africa’s construction industry


CONSTRUCTION

129

a f r i c a . b u s i n e s s c h i e f. c o m


PERI

130

A

s the world’s largest manufacturer of formwork and scaffolding, PERI is a company defined by a core mis-

sion to bring profound expert knowledge in both industry best practice and technology through a strong understanding of local environments and requirements. This mission places PERI as a key contributor to the redefining of the construction space as technology and innovation continues to drive real change. This unique position is what excites Willem Adriaan Brits, Director of Engineering for PERI in sub-Saharan Africa. AUGUST 2018


CONSTRUCTION

131

“I’ve been very passionate about con-

insight into what the real stumbling

struction my whole life,” he says. “At PERI

blocks are in the industry, not only in

we are at the forefront of real change and

day to day operations but in embracing

a position where we can make a differ-

technology and innovation.

ence to the research and the

That is essentially his role with PERI

development of new ideas. We are look-

across South Africa – to enable con-

ing at innovation and improvements

tractors in the construction space to

which will enhance construction projects

construct their projects faster, more

and the constructability of these projects.”

efficiently and more safely, and the

Brits has extensive experience in the construction space, having worked in a number of construction roles over the

major piece in this puzzle is technology and digitalisation. “The key thing for us in improving con-

course of his career. It is experience

structability is to build information and

that he feels provides him with a key

wider access to that information,” he says. a f r i c a . b u s i n e s s c h i e f. c o m


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CONSTRUCTION

“What it boils down to is creating access to people on construction sites and seeing 3D designs with live documentation, live design guides, design manuals etc. “This will make it more effective, more efficient and easier. That’s what we do, we shoulder customer problems through digital construction solutions and a more modern thinking approach to construction.” The challenge in changing an industry, one that is historically one of the slower moving sectors in the

“THAT’S WHAT WE DO, WE SHOULDER CUSTOMER PROBLEMS THROUGH DIGITAL CONSTRUCTION SOLUTIONS AND A MORE MODERN THINKING APPROACH TO CONSTRUCTION” — Willem Adriaan Brits Director of Engineering for sub-Saharan Africa

digital space, is changing a culture. With technology transformations and a shift towards digital innovative solutions, what impact does this have on the people? Construction by its very nature relies on labour and in South Africa and sub-Saharan Africa, labour is far cheaper than other countries. “Unfortunately, cheaper labor results in a lack of or considerably lower skill levels across the sector,” says Brits. “In turn, this means that actually applying digital and innovative solutions comes at a price. a f r i c a . b u s i n e s s c h i e f. c o m


“So, there is a tendency across

PERI works with what Brits

the industry not to move forward

describes as the entire engineering

and rely on cheaper solutions

value chain. Looking at the con-

attached with cheaper labour,

struction sector there are the

which then means projects take

property owners, infrastructure

longer and aren’t completed as effi-

owners, designers and developers,

ciently. It’s a real stumbling block.”

engineers and the mechanical

Brits notes that to break down a culture established over

teams that work on site. In order to adopt a new way

hundreds of years is difficult,

of working and implement new

but that there is an opportunity

technology enabled solutions

to embrace a new, more effi-

across that ecosystem, it

cient, safer and innovative

requires collaborative communi-

industry. It will just take time

cation at every stage of the

and communication.

value chain.

AUGUST 2018


CONSTRUCTION

BIO

Willem Adriaan Brits Director of Engineering for sub-Saharan Africa With hands-on experience on infrastructure and building projects and an MBA (University of Stellenbosch and Vlerick in Belgium) he gained the necessary knowledge to effectively influence, coach and manage teams and managers to enable business units to achieve key performance targets. His passion for sailing/work life balance has enhanced his ability as a leader though the application of the strategic, risk and people management and environmental-awareness skills gleaned to other aspects of both life and work. Through his tenure, Riaan has always contributed to the larger society as a whole and have been actively involved with Professional Industry bodies in the form of office bearer with bodies such as the Concrete Society of South

Africa (CSSA), Young Professionals Forum (YPF), South African National Standard for Scaffolding and Formwork (SANS, current) and the Institute for Working at Heights (IWH - current). His contributions have not stopped at industry only and he also believe in social awareness and has been integrally involved with the Imadaba Social project which fosters social cohesion since 2016. Riaan is driven by a desire to actively expand his horizons, build human capital and coach people to continuously improve themselves. He lives a full life and is a blessed husband and father who draws strength from his family.

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PERI

“Through information and management tools it enables everyone to link up more collaboratively,” says Brits. “We can see and help

136

design the buildings and look at the constructability at the very early stages. All of

Click to watch: ‘Formwork, scaffolding and engineering from one source’

this will directly relate in cost savings, from the initial set up of a programme right through to construction. “All the clashes and stumbling blocks can be addressed, resulting in a much smoother construction process.” As with any technology implementation, capability is key. But what can be readily adopted in one construction space in Europe, or the United States, may not be as simple in South Africa or sub-Saharan Africa. This is

AUGUST 2018


CONSTRUCTION

“MOST PEOPLE ARE EXCITED ABOUT THE CHANGE TO DIGITAL SPACE. IF WE CAN COMMUNICATE TO THEM AND SHOW THEM HOW IT WILL BOOST THEIR ACTIVITY AND THEIR EFFICIENCY,THEN THE INDUSTRY WILL IMPROVE. IT’S A MINDSET,AND MINDSETS CAN CHANGE” — Willem Adriaan Brits Director of Engineering for sub-Saharan Africa

a f r i c a . b u s i n e s s c h i e f. c o m

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PERI

something that Brits is all too aware of as he feels that, much like the reliance on cheaper labour, there is a reliance to remain using the current, outdated software. Alas, new technology is being adopted more and more across the continent, and the key for Brits is practice and communication. “We need to discuss the cost of software and the business

“IF YOU’RE CLOSE TO THE SUPPLIERS,THEY UNDERSTA BETTER WHERE YOU WANT TO GO AND WHAT WE WAN TO ACHIEVE – THEY HELP US MAKE THE FIRST MOVE.THE ARE ENTRENCHED IN THE INDUSTRY AND SEE HOW BEST TO NAVIGATE THE OBSTACLES ALONG THE WA

case for it more and more,” he 138

says. “Most people are excited about the change to digital space. If we can communicate to them and show them how it will boost their activity and their efficiency, then the industry will improve. It’s a mindset, and mindsets can change.” Brits also points to the future of digital requiring more skilled people and so PERI works in skilling and reskilling people to better prepare the industry for this digitally enabled future. Navigating the journey of adopting and implementing technology across a largescale sector is a task one cannot complete alone. PERI works with a number of contractors and suppliers across the entire AUGUST 2018

— Willem Adriaan Brits Director of Engineering for sub-Saharan Africa


CONSTRUCTION

AND

NT S EY

AY” 139

1969

Year founded

670

Approximate number of employees

a f r i c a . b u s i n e s s c h i e f. c o m


PERI

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construction value chain and Brits feels that the relationships that PERI forms and fosters with these suppliers is crucial. “In all the areas – design, construction, technology and engineering – it’s paramount that you are close to the suppliers,” he says. “If you’re close to the suppliers, they understand better where you want to go and what we want to achieve – they help us make the first move. They are entrenched in the industry and see how best to navigate the obstacles along the way.” The construction industry in South Africa is changing, for better and for worse. Brits AUGUST 2018


CONSTRUCTION

141

points to how a number of larger play-

ogy brings to the industry, and that it is

ers in the sector, ones that have

only just beginning.

operated for hundreds of years, have

“I really see a big space for applying

had to change their operations in order

digital information and having live data,

to survive. In some cases, some have

just that information sharing collabora-

fallen into liquidation and disappeared.

tion process. There’s a lot of space for

To look at it from a different perspective, this has seen smaller companies

that,” he says. “I think there’s a large amount of

and the companies that have survived

opportunity. There’s a big change and a

this change becoming far more agile

big shift that’s going to come.”

which is key to embracing the technological and digitally defined future. For Brits, these movements highlight the opportunity that digital and technola f r i c a . b u s i n e s s c h i e f. c o m


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AB InBev TOASTING A SUSTAINABLE FUTURE IN AFRICA WRITTEN BY

LAURA MULLAN PRODUCED BY

STUART IRVING

AUGUST 2018


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ANHEUSER-BUSCH INBEV

Brewing the highest quality beers depends on ingredients from a healthy environment and thriving communities. With its 2025 sustainability goals underway, AB InBev is cementing its future in Africa B InBev is undergoing what you could call a ‘sustainable renaissance’. Earlier this year, the beer giant unveiled its ambitious sustainability goals for 2025, channelling a forward-thinking vision that hopes to promote high environmental standards and help local communities thrive. As part of this plan, AB InBev is championing five key principles; smart agriculture, water stewardship, circular packaging and climate action, and perhaps nowhere is this more evident than at its operations in Africa. In 2017, AB InBev acquired rival SABMiller, which made waves in the alcohol sector and cemented its position as the largest beer company in the world. In her previous role, Zoleka Lisa worked at South African Breweries, a subsidiary of SABMiller, but post-merger she rose through the ranks to become AB InBev’s Procurement Director of Capabilities and Sustainability. “It’s a role which I hold close to my heart, as it has the opportunity to

A

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AUGUST 2018


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Zoleka Lisa, Procurement Director of Capabilities and Sustainability

a f r i c a . b u s i n e s s c h i e f. c o m


ANHEUSER-BUSCH INBEV

shift the needle of the socio-economic climate we find ourselves in, in Africa,” Lisa says. As the largest beer company in the world, AB InBev’s brewing heritage spans across continents and generations. This mammoth scale can be a challenge, even more so

when the firm has pledged to uphold some of the industry’s highest sustainability standards. For Lisa, this commitment to sustainability only goes to show that AB InBev may have a robust business acumen, but it hasn’t forgotten the importance of the environment and

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“AB InBev is a company which genuinely wants to do good by uplifting communities and promoting the drive towards sustainability” — Zoleka Lisa, Procurement Director of Capabilities and Sustainability AUGUST 2018


FOOD & DRINK

community it relies upon. “AB InBev is a company which genuinely wants to do good by uplifting communities and promoting the drive towards sustainability,” explains Lisa. “Success for AB InBev goes beyond just the bot-

tom line but resonates in building communities and ensuring the way in which we live in the world is sustainable. For me, it is an admirable trait for a large corporate to be so determined to shift the needle in a positive way. This is what

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community it relies upon. “AB InBev is a company which genuinely wants to do good by uplifting communities and promoting the drive towards sustainability,” explains Lisa. “Success for AB InBev goes beyond just the bot-

tom line but resonates in building communities and ensuring the way in which we live in the world is sustainable. For me, it is an admirable trait for a large corporate to be so determined to shift the needle in a positive way. This is what a f r i c a . b u s i n e s s c h i e f. c o m


HEADS UP! TO MAKING THE WORLD A BETTER PLACE.

We support AB Inbev’s Sustainability Goals by promoting glass reuse and recycling in South Africa. • • • •

By encouraging glass resuse and recycling in South Africa we have achieved a 82% diversion rate of glass from landfill Our returnable bottle system is one of the most efficient in the world All new glass packaging has a 41.5% recycled glass content Each recycled and reused glass bottle saves valuable energy, landfill space, reduces CO2 emissions and generates a source of income for thousands of South Africans

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makes me so proud to say I work for AB InBev.” After much deliberation, the company’s four focus areas were chosen as they were seen to present the biggest risk or opportunity for AB InBev as a company. Yet, specifically in Africa, AB InBev added a fifth additional pillar: entrepreneurship. “Given the significant emphasis across the continent on employment, job creation, and the development of SME’s to alleviate poverty, we felt this

was an import area to include under the Zones sustainability strategy,” notes Lisa. “In the majority of locations where we operate, AB InBev is a local brewer,” she continues. “We sell our products to the local community; our employees live in the communities we operate in and we rely on local resources to produce our products. “To ensure we can carry on operating for the next 100+ years, we have a vested interest in ensuring that we can support a f r i c a . b u s i n e s s c h i e f. c o m


ANHEUSER-BUSCH INBEV

AUGUST 2018


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“S uccess for AB InBev goes beyond just the bottom line, but resonates in building communities and ensuring the way in which we live in the world is sustainable”

thriving local economic development to support market growth.” Zeroing in on its smart agriculture goal, AB InBev has pledged that 100% of its direct farmers will soon be skilled, connected and financially-empowered. With this in mind, technology is set to play a key role. Malt barley is one of the — primary ingredients in beer Zoleka Lisa, Procurement Director of Capabilities and Sustainability and AB InBev places a high priority on cultivating only the best quality barley for its beer. Aiming to tended to over apply fertiliser revolutionise the agriculture sector, AB which not only increased costs InBev launched its SmartBarley programme but had a negative impact on the in 2013 and today, it plays a pivotal role in environment. This data-enabled its operations in Africa. Leveraging data platform allowed farmers to see technology and insights, SmartBarley is this trend first-hand. helping farmers improve both their produc“We are committed to being at tivity and environmental performance. the forefront of malting barley More than 5,000 farmers have participated research, helping our farmers in SmartBarley so far and the data gathered improve yields and reduce the allows AB InBev to identify and address use of resources like water and gaps through a range of agronomic, envifertilizers,” says Lisa. “Now we ronmental and management initiatives. are taking SmartBarley to the So, for instance, when used in Mexico, next level by using the data to SmartBarley showed that some farmers build sustainability metrics and a f r i c a . b u s i n e s s c h i e f. c o m

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“For me, it is an admirable trait for a large corporate to be so determined to shift the needle in a positive way. This is what makes me so proud to say I work for AB InBev” — Zoleka Lisa, Procurement Director of Capabilities and Sustainability

AUGUST 2018


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S TAT I S T I C S

AB InBev’s 2025 Sustainability Goals • Smart Agriculture: 100% of its direct farmers will be skilled, connected and financially-empowered. • Water Stewardship: 100% of its communities in high stress areas will have measurably improved water availability and quality. • Circular Packaging: 100% of its products will be in packaging that is returnable or made from majority recycled content. • Climate Action: 100% of its purchased electricity will be from renewable sources; and a 25% reduction in CO2 emissions across our value chain (science-based).

a f r i c a . b u s i n e s s c h i e f. c o m

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FOOD & DRINK

“U ltimately we believe that it’s only when we address water risk issues at source, in collaboration with partners, that we can achieve lasting, sustainable, solutions to water resource management”

create predictive analytics to help farmers access better insights to make decisions.” In addition, AB InBev has tasked itself with promoting water stewardship. To achieve this, it is making improvements to its plant water use efficiency and is also supporting partners that work to protect and conserve the valuable resource it so heavily relies upon. “To this extent, each of our breweries has mapped out — Zoleka Lisa, Procurement Director of where water use can be Capabilities and Sustainability improved,” comments Lisa. “Globally we have set a target of achieving a water use ratio of 2.8 hl/hl by 2025.” ners to support water As part of this, the beer producer has creconservation at a catchment ated partnerships with both the cities of level,” adds Lisa. “Ultimately Tshwane and Cape Town (in South Africa) to we believe that it’s only when find new ways to conserve or augment water we address water risk issues at supplies. This has seen new pressure mansource, in collaboration with agement systems implemented as well as partners, that we can achieve the rehabilitation of natural springs and lasting, sustainable, solutions wells. In Tshwane alone, the beer firm has to water resource management. been able to add an extra 9600kl per day An example of this is the Outinto the municipal system. eniqua partnership AB InBev “We are also working actively with parthas developed with the World a f r i c a . b u s i n e s s c h i e f. c o m

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ANHEUSER-BUSCH INBEV

“S ustainability is not just related to our business, it is our business” — Zoleka Lisa, Procurement Director of Capabilities and Sustainability

SUN CHILLED BEER SunArc has recently joined AB InBev on a national project rollout to provide off grid solar power to Tavern fridges throughout Africa. SunArc’s vision, whether it be for B2C, B2B or small utility scale projects, is to create an enhanced customer experience for the supply and consumption of clean and sustainable solar energy for all to enjoy.

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Wide Fund for Nature (WWF) in George, South Africa. “The area is strategically important to AB InBev as is the only area in the country where hops are exclusively grown,” explains Lisa. “However, the infestation of invasive alien vegetation that causes a loss of surface water flow in the river system due to the amount of water the vegetation consumes.” The Outeniqua project has helped to clear around 700 hectares of this vegetation in the

past four years so that it can be replaced less water-hungry indigenous alternatives. The project hopes to return approximately one billion litres of water per year – water that is needed to support development in the region and create AB InBev’s wide-reaching portfolio of beers. Like many companies in the food and beverage space, AB InBev has recognised that the tide is changing when it comes to packaging. As such, the beer giant has also pledged to use cira f r i c a . b u s i n e s s c h i e f. c o m


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cular packaging by 2025. To achieve this in the Africa region, AB InBev has strived to make its packaging more sustainable and has also improved the systems that help to remove post-consumer packaging waste. “The majority of our beer volumes on the African continent is distributed in returnable bottles,” says Lisa. “These bottles, in turn, can be reused up to 20 times before being crushed and reused to manufacture new glass bottles. The use of returnable packaging can significantly reduce the environmental impact of our packaging. At the same time, we also look for opportunities to optimise our packaging by, for example, by reducing the weight of our bottles. By doing this we reduce the amount of raw materials required to produce the bottles.” Recognising the role it has to play in removing packaging from the market, the beer producer has also helped to invest in recycling initiatives such as Manja Pamodzi or ‘Hands Together’. “This serves not only to reduce litter and the impact on landfills but also forms an important input into supplying recycled materials that can be reused in packaging production,” Lisa adds. As part of its sustainability drive, AB AUGUST 2018

“I n 2018 our South African subsidiary initiated a project to implement solar energy on its brewery roofs which, once complete, will account for approximately 10% of our annual country electricity purchases” — Zoleka Lisa, Procurement Director of Capabilities and Sustainability


FOOD & DRINK

InBev has looked at its energy resources, pledging that, by 2025, 100% of its purchased electricity will be from renewable sources. The beer giant has also vowed to reduce its CO2 emissions by 25% across its value chain. “In 2018 our South African subsidiary initiated a project to implement solar energy on its brewery roofs which, once complete, will account for approximately 10% of our annual country electricity purchases,” highlights Zoleka. “As a zone, we are reviewing similar on-site opportunities in Ghana, Nigeria and Zambia.” It’s easy to forget that a lot of effort, time and energy goes into making AB InBev’s renowned beers. A single bottle of Budweiser wouldn’t be possible without barley and hops or the farmers who grew those ingredients in the first place. Recognising this, AB InBev has rejected a “tick-box” approach to sustainability and is striving to

do not what it ‘can’ do, but what it ‘should’ do. “At the heart of it, AB InBev is a brewery which cares,” reflects Lisa. “It is in a constant and active pursuit of making a positive impact to the world in which we live. This allows us to be strong industry leaders in the business as far as sustainability goes, as we are able to deliver that extra punch of passion, which large corporates so often lack. Sustainability is not just related to our business, it is our business.”

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Business Chief Africa magazine - August 2018  
Business Chief Africa magazine - August 2018