Page 1

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Europe â‚Ź10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK ÂŁ7, USA $12

March 2014

African Review of Business and Technology


March 2014

Pipelines for potable water

Volume 48 Number 2






Turbine hall cranes for South African power plants P46


A sustainable approach to Egyptian transport P36


The hike in funds for hotel building P26

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Editor’s Note

Europe €10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12

March 2014


Pipelines for potable water


his issue of African Review covers business and finance, environment and technology, logistics, power, and construction and mining. Pages 23-28 of this issue address commerce and cash, with insights into the structures of Nigerian business entities, the growth in available finance for hospitality stemming from West Africa, and the resurgence of targeted investment in agriculture across the continent. Pages 30-35 cover the application of different technologies to serve satellite communications, corporate security, and office environments. Pages 36-39 look at logistics, with appraisals of sustainable transport initiatives, innovations in packaging, and the forthcoming Propak event in Nairobi. The power sector is the focus for pages 40-48, which comprise assessments of generator maintenance, grid infrastructure, and Powergen Africa. Construction is covered on pages 49-58, with reports on pipelaying to connect water systems, investment in infrastructure systems, roadbuilding, the markets for used equipment, and the kit on show at Conexpo-Con/Agg. Mining stories in this issue, on pages 59-65, include articles on crushing and screening, chute assembly, compressor use, and the prospects at WAMPEX.




investment Power:



Turbine hall cranes for South African power plants P46

A sustainable approach to Egyptian transport P36

The hike in funds for hotel building P26

(Main cover picture: Lafarge Inset, bottom left: Konecranes Inset, top right: Incledon

Andrew Croft, Managing Editor


REGULARS 04 Agenda:

14 Bulletin:

Africa’s key initiatives and opportunities

66 Solutions:

Communications and commerce, and resources

Equipment to improve industrial efficiency

P34 FEATURES 23 Business and Finance Current corporate structures in Nigeria; cross-continental growth in the business of hospitality; and targeted agricultural investment

30 Environment and Technology Improved management of water resources in South Africa; satellite services for marine operations; and security solutions for public facilities

36 Logistics Green transport services in Egypt; thermoformers that support sustainable packaging options; and the solutions and services on show at Propak East Africa


40 Power The importance of genset maintenance; Indian energy enterprise in Africa; innovations at Powergen Africa; lifting solutions for power plants; and America’s interest in improved grids

49 Construction Pipelines to supply potable water; investment in efficient infrastructure systems; Japanese funding for Ugandan roads; analysis of the market for used equipment; and an appraisal of industry support at Conexpo-Con/Agg

59 Mining Crushing and screening for minerals handling; collaboration on chute assembly to reduce the cost of mine operations; compressor use by explosives experts; and a look ahead to Indian participation at WAMPEX

Audit Bureau of Circulations Business Magazines China: Ying Mathieson Tel: +86 10 8472 1899 Fax: +86 10 8472 1900 Email: Managing Editor: Andrew Croft Editorial and Design team: Bob Adams, Hiriyti Bairu, Sindhuja Balaji, Lizzie Carroll, David Clancy, Ranganath GS, Prashant AP, Rhonita Patnaik, Genaro Santos, Zsa Tebbit, Nicky Valsamakis, and Ben Watts Publisher: Nick Fordham Advertising Sales Director: Pallavi Pandey Advertising Sales Manager: Jane Wellman Tel: +44 114 262 1523 Fax: +44 7976 232791 Email:

India: Tanmay Mishra Tel: +91 80 65684483 Fax: +91 80 40600791 Email: Nigeria: Bola Olowo Tel: +234 80 34349299 Email: South Africa: Annabel Marx Tel: +27 218519017 Fax: +27 46 624 5931 Email:

UAE: Camilla Capece Tel: +971 4 448 9260 Fax: +971 4 448 9261 Email: UK: Steve Thomas Tel: +44 20 7834 7676 Fax: +44 20 7973 0076 Email: USA: Michael Tomashefsky Tel: +1 203 226 2882 Fax: +1 203 226 7447 Email:

Head Office: Alain Charles Publishing Ltd, University House, 11-13 Lower Grosvenor Place, London SW1W 0EX, United Kingdom Tel: +44 (0)20 7834 7676, Fax: +44 (0)20 7973 0076 Middle East Regional Office: Alain Charles Middle East FZ-LLC, Office 215, Loft No 2/A, PO Box 502207, Dubai Media City, UAE, Tel: +971 4 448 9260, Fax: +971 4 448 9261 Production: Nathanielle Kumar, Donatella Moranelli, Nick Salt and Sophia White E-mail: Subscriptions: Chairman: Derek Fordham

Printed by: Paarl Print Media US Mailing Agent: African Review of Business & Technology, USPS. No. 390-890 is published 11 times a year for US$140 per year by Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London SW1W 0EX, UK. Peridicals postage paid at Rahway, New Jersey. Postmaster: send address corrections to Alain Charles Publishing Ltd, c/o Mercury Airfreight International Ltd, 365 Blair Rd, Avenel, NJ 07001.

ISSN: 0954 6782

Serving the world of business

African Review of Business and Technology - March 2014


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Agenda / North Alcatel-Lucent and Injaz work together in Morocco and Egypt Telecommunications company Alcatel-Lucent has formed a partnership with Injaz Egypt in and Injaz Al Maghrib to support educational development programmes in Egypt and in Morocco. Injaz aims to prepare middle schools, high schools and university students to enter the workforce as qualified and skilled employees, to empower their personal and professional capabilities and open their minds to their fullest potential, building confidence and creativity to enhance their knowledge and entrepreneurial spirit. The NGO encourages private sector participation and corporate citizenship involvement in educational development. Alcatel-Lucent employees are participating as corporate volunteers, with Injaz’s support, on the different educational Group photo of volunteers and development programmes: in 480 kids from Layoune school Egypt with the ‘Adopt a School’ programme and in Morocco with the ‘Entrepreneurship Masterclass’ programme. Both programmes are members of Junior Achievement worldwide, which is specialised in economic education. AlcatelLucent volunteers share their professional life experience and skills with the youth, giving them practical training on how to succeed in the work life. Through the various Injaz programmes, students progress from learning work readiness and character building skills to acquiring financial literacy skills and entrepreneurial mindsets. Upon completing the series of courses, students graduate with confidence in their capabilities, with a vision on how to plan their careers and with skills to succeed in the world of work. They also have a network of mentors with various professional backgrounds they can call on for help. Injaz programmes also give those who have succeeded in the private sector a chance to give a helping hand to the next generation. This exciting experience to help inspire, lead and become a role model for students brings them in close touch with youth in their communities.

Breaking barriers to Tunisian business success A joint publication prepared by the Tunisian Institute of Competitiveness and Quantitative Studies (ITCEQ), the Centre for Research on Economic Development and International Finance (DEFI) and the African Development Bank (AfDB) analyses the main barriers to improving the competitiveness of the Tunisian economy. Entitled Modeling and Analysis of Tunisia’s Productive System, the report identifies several challenges to improving the country’s competitiveness to deliver the maximum benefits of its development strategy and position itself in the global economy. It observes, moreover, that unskilled labour and graduate labour are interchangeable in all sectors, which should not be the case. This reflects existing tensions on the country’s labour market with a job offer too low for qualified young people and salary expectations of young graduates too high given the current economic situation.


African Review of Business and Technology - March 2014

Job creation and social inclusion by Internet


he Middle East and North Africa (MENA) countries lag behind when compared with other regions in the development of broadband networks, Internet access and use, and creation of digital content. The demand for widespread access to broadband Internet, a key driver of economic growth, job creation, and social inclusion, has never been greater. According to the latest regional report by the World Bank on broadband in the Arab world, open competition and policy and regulatory changes could transform the region into a global leader in high speed Internet. “The Middle East and North Africa region has been the cradle of science and technology and can again use modern technology to address the contemporary problems faced by the region,” said Inger Andersen, World Bank vice president for the MENA region. "We at the World Bank Group are committed to working closely with all countries in MENA to improve access and quality of broadband Internet connection.” The report, ‘Broadband Networks in the Middle East and North Africa: Accelerating High Speed Internet Access’, highlights how broadband drives economic development and is core to the competitiveness of nations. However, high speed Internet penetration is low in MENA compared to emerging regions in Europe and Asia. With the exception of Gulf countries, where Internet access is available to broad segments of the population, in many countries of the Arab world fewer than a quarter of households have access to this essential tool. Millions of people cannot afford Internet services and are therefore excluded from the information revolution that is shaping the modern world. “Broadband can radically change the socio-economic prospects for the region and contribute to higher growth and shared prosperity,” said Carlo Maria Rossotto, World Bank ICT regional coordinator in the MENA region.

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Agenda / East Al Abbas extends network Transport and logistics firm Al Abbas Transport has expanded its logistics network with the addition of its latest route between Egypt's Erqan and Sudan's Khartoum. Al Abbas' new route coincided with the opening of the Egypt-Sudan overland link connecting Erqan to Sudan's northern city of Dongola. The project is being implemented by Agrojet, a consortium of companies including Sudan's El Zawaya and Khartoum Group for Roads and Bridges, Asfour Crystal & Shatat Group of Investments in Egypt and Saudi Arabia's Cardoba and Radwa groups. Mohamed Atta Gad, Mohamed Atta Gad, chairman and chairman and managing director, Al Abbas Transport managing director of Al Abbas Transport, stated, “Reflecting the increased trade between Egypt and Sudan, Al Abbas Transport is set to send an initial fleet of 60 trucks loaded with 3,000 tons of Egyptian cargo including urea, fertiliser, as well as Egyptian asphalt to Sudan as the first company to inaugurate the breakthrough transport route.” Al Abbas Transport is using the Erqan to Dongola route by sending daily trucks loaded with various goods and commodities. The final destination for goods will be Khartoum. Al Abbas Transport has also planned the establishment of a new logistics hub for goods storage in the Upper Egypt city of Erqan. “Our new logistics hub will facilitate the processing of goods, commodities and merchandise not only between Egypt and Sudan, but also to further destinations in Africa such as Ethiopia, Kenya and Tanzania. This better serves our customers by providing them timely and efficient cargo delivery to their intended destinations,” said Atta Gad.

Emirates flies from Lusaka to Taipei Emirates, which has been inspiring travel and facilitating trade between Zambia and the world since 2012, has added Taipei to its passenger destinations. The airline facilitates travel and trade between Zambia with daily direct flights from Lusaka to Dubai and Harare, connecting Zambia to over 140 destinations across six continents. Taipei, home to nearly seven million people, is an economic and cultural centre with renowned sights, attractions and a myriad of shopping options. The destination is famous for producing and exporting electronics, textiles, plastics and rubber, optical and photographic instruments and chemicals. As a tourist, there is plenty to do in Taiwan, with eight national parks and 13 national scenic areas visitors can enjoy trekking in the magnificence of the cliffs at Taroko Gorge; taking a ride on the Alishan Forest Railway or hiking up to the summit of Northeast Asia's highest peak, Yu Mountain.


African Review of Business and Technology - March 2014

Agri-Vie invests in Kariki


he private equity fund Agri-Vie, which is focused on food and agribusiness investments in Sub-Saharan Africa, has invested US$5mn into Kariki Group, a specialist Kenyan flower exporting business. According to Dave Douglas, investment advisor at Agri-Vie, the fund was attracted to making this investment in Kariki by its reputation as a high quality supplier, its world class operational facilities, and because it is an efficient and well managed business. Douglas says “the horticultural industry in Kenya is a significant contributor to the national GDP. Kenya now has a 38 per cent market share of the massive flower supply in Europe. Being on the Equator, there is no real change of season and with a high percentage of sunlight hours a year, Kenya has capitalised on these climatic and geographic advantages. Conversely, growers in Europe have to utilise artificial lighting and heating to extend their growing period, thereby adding substantially to their costs.” The flower industry in Kenya has grown progressively from modest beginnings in the mid-1980s. Within 20 years it emerged as one of the world’s leading flower exporting nations. Recognising the potential, the Kariki Group was founded in 2002 by brothers Richard and Andrew Fernandes, at a stage when the European floriculture sector became less cost competitive and began shrinking. The cut flower industry operates to highly sophisticated and effective standards. Within two days of cut flowers being harvested in Kenya, they are available to be sold to the consumer in Europe having been trimmed, packaged, and airfreighted overnight from Nairobi to Holland. From there, approximately two thirds of the flowers are sold through the massive Dutch flower auction at Aalsmeer after which they are invariably re-shipped to the final destination in countries as diverse as Sweden, Russia, the USA and Japan.

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Agenda / South Unilever, Symrise and GIZ support Madagascan vanilla farmers A unique development partnership has been formed, including a comprehensive three-year programme that will impact 32 communities and involve 44 schools and colleges, giving it the potential to improve 24,000 lives in one of the world’s poorest nations. The programme is partly financed within the framework of the programme of the German Federal Ministry for Economic Cooperation and Development (GIZ). GIZ’s principal partners are Unilever and a supplier to Unilever called Symrise. Madagascar produces 79 per cent of the world’s natural vanilla supply. Unilever uses vanilla as an ingredient in its leading ice cream brands, such as Magnum, Breyers and Carte D’Or. The partnership aims to secure this vanilla supply for Unilever in the future and to support the farming communities with improved access to secondary education and training in agricultural best practices. Throughout the project equal opportunities will be provided to women and girl students since they represent about 50 per cent of the communities and are actively involved in farm management: between 20 and 30 per cent of the farmer households are headed up by women. Symrise and Unilever have been working with smallholder farmers in the Sava region for a number of years already, and this partnership will accelerate plans on the ground. A German federal enterprise in the field of international cooperation for sustainable development, GIZ operates in more than 130 countries worldwide and draws on a wealth of regional and technical expertise. It will play a crucial role in defining how the programme is developed and monitored.

Madagascar produces 79 per cent of the world’s natural vanilla supply (Photo: Augustine Fou)

Investment in nickel mining According to analysis by Frost & Sullivan, Africa has significant unexploited nickel deposits due to the capital-intensive nature of nickel mining, an unfavourable investment climate, and long periods between constructing and commissioning mines. Southern Africa is the largest nickel producing region in Sub-Saharan Africa. The research firm’s latest analysis, published in ‘Production and Investment Forecast of the Nickel Mining Industry in Southern Africa’, provides detailed and up-to-


date market intelligence on production and investment trends in the nickel mining industry in Southern Africa (2006-2018). South Africa, Botswana, and Zambia are the major producers and mainly sell to international markets in Japan, China, and India. It is expected, also, that large-scale development projects in Madagascar and Tanzania will consolidate Southern Africa's position as a key nickel producing region in Sub-Saharan Africa.

African Review of Business and Technology - March 2014

IDS Fund Services selects eFront solution


inancial solutions software firm eFront has been chosen by South African fund administrator IDS Fund Services (IDS) to supply software support for IDS’ private equity and real estate fund administration operations. With a growing private equity market in Africa and the increasing complexity of the alternative asset market, IDS sought an innovative and reputable technology solution that would enhance its private equity operation and service offering for local and international clients. eFront was able to provide a flexible solution to support IDS requirements and evolve with the market demands. “The success of IDS is built on our ability to build and develop close clients’ relationships, adapt and evolve with customers’ needs and our innate understanding of business culture in Africa. Our commitment for high-quality client service prompted us to search for an innovative technology solution that meets the increasingly complex fund management and reporting requirements in the private equity administration space. We believe that eFront has the most advanced and recognised system solution which will support our commitment to high quality services and will assist us to further expand into the private equity market,” explained Tony Christien, deputy CEO at IDS. “We believe that eFront will complement our private equity services, assisting IDS in providing reliable and timely services to support and facilitate the private equity fund operation activities, allowing private equity managers to focus on core activities,” added Raffaela Mirai, private equity specialist at IDS. Since commencing operations in South Africa in 2008, eFront has built a community of more than 500 users working with its FrontInvest software.

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Agenda / West Lower costs for conveyor belts Pit to Ship Solutions, part of the Intermodal Solutions Group (ISG), showcases its containerised bulk handling system at the West African Mining and Power Expo (WAMPEX), which takes place at Accra Convention Centre, Ghana, from 28 to 30 May 2014. The company designs specialised dust-free containers to transport commodity products directly from mining sites to bulk ships’ storage hulls. Stand-out features include a 40-ton payload, compared to 32 tons for most bulk mining containers, a patented water and dust proof lid lifter design, and the ability to deliver product dust free. The containers can also be used as storage sheds. “We completed a major project for Exxaro in 2012 to move iron ore out of Point Noire, Republic of Congo, involving 1,350 of these specialised containers,” says ISG’s chief financial officer Julie Boden. “The containers were delivered six weeks ahead of schedule and the client was very happy with our service. Other similar projects like transporting copper concentrate for OZ Minerals has made us a benchmark in the industry.” At WAMPEX, Boden is seeking to gain greater market exposure for ISG’s containerised bulk handling system, to help potential users to understand the productivity and financial benefits offered by its container system.

Sea Trucks returns to Angola Sea Trucks Group has returned two of its DP3 accommodation construction vessels to Angolan waters. Following a recent contract award from Daewoo Shipbuilding and Marine Engineering, a global offshore services company, the group’s accommodation vessel Jascon 28 is providing accommodation services in the CLOV Deep Offshore Development operated by Total. Also Jascon 30 has returned to Angola for an accommodation contract for one of the major oil companies. The two vessels were mobilised into the country in early February 2014. Founded in 1977, the Sea Trucks Group

offers offshore installation services to the oil and gas industry worldwide, employing more than 2,500 employees. The group has been providing marine services to the major oil and construction companies in West Africa since the late 1970s. With its indigenous operating company, West African Ventures (WAV), the group offers significant local content when executing sub-sea construction projects in Nigeria. WAV established its office in Lagos in 2001 and has since built its reputation for being a reliable partner for pipelay, fabrication, installation and engineering services as well as marine transportation.

Emirates links Abuja and Kano Middle Eastern airline Emirates is expanding its presence in Nigeria, Africa’s most populous country, with the start of a daily linked service to Abuja and Kano from 1 August 2014. Abuja, located in the centre of the country, is a planned city built largely during the 1980s which replaced Lagos as Nigeria’s capital in 1991. It is the seat of the Federal Government and home to most of Nigeria’s institutions, including the Central Bank of Nigeria and Nigerian National Petroleum Corporation. Abuja is also the headquarters of the Economic Community of West African States (ECOWAS) and the regional headquarters of the Organisation of the Petroleum Exporting Countries (OPEC). Kano, the capital of Kano State in northern Nigeria, is the second most populous city in Nigeria after Lagos, and has a history that goes back hundreds of years. The area is known for the production and export of groundnuts, a major source of Nigeria’s export earnings before the oil boom in the 1970s.


African Review of Business and Technology - March 2014

Tools and training that could boost farming


ield schools that train farmers in alternative methods of pest control have succeeded in nearly eliminating the use of toxic pesticides by a community of cotton growers in Mali, according to research published by the UK-based Royal Society. The study was conducted in two areas - the Bla region of southern Mali, where the Food and Agriculture Organisation (FAO) established a field school programme in 2003, and a second area, Bougouni, where the programme was not yet active. While only 34 per cent of all cottonfarmers in the area participated in the programme, pesticide use on all of Bla's cotton farms - more than 4,300 households - dropped a staggering 92 per cent. The study further found that the move away from pesticide use had no negative impact on yields. The Bougouni area, where training has not yet taken place, saw no change in pesticide use over the same eight-year period. This suggests that knowledge of alternative methods in pest control was further disseminated by programme participants to other farmers in the area, underscoring the potential of farmer field schools to act as catalysts for widespread practice change. Slashing their use of chemicals and shifting to alternative "biopesticides" like neem tree extract, growers in the Bla study group reduced their average individual production costs. By refraining from applying more than 47,000 litres of toxic pesticides, the farmers saved nearly half a million dollars over the study period. Training farmers in alternative methods of pest control proved to be three times more cost-effective than purchasing and using synthetic pesticides, according to FAO's analysis. More than 20,000 cotton farmers have been through field schools in Mali.

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When it comes to diversification, nothing beats good genes. Having mastered the bulldozer, which stands at the top of the construction machinery food chain in terms of sophistry, we seamlessly developed an entire line of earthmoving, road, concrete handling, public utility and other machines that are now following in the tracks of our world leading bulldozers. Our rise to become the No. 1 bulldozer maker and seller in the world was no accident of nature. It is the result of persistent product development and machines that have proven to have high performance at a great price. It’s what we call VALUE THAT WORKS. Hard. Long. Efficiently. The Shantui brand now sells in more than 150 countries and regions round the globe. Contact your local Shantui dealer today to discover more about our entire product family and our worldwide ”Anytime, Anywhere Service” guarantee.

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Events / 2014 April



Morocco Oil & Gas

IFSEC South Africa

Marrakech, Morocco

Johannesburg, South Africa

Propak East Africa

28 Apr-3 May


Nairobi, Kenya

Africa Travel Week

SatCom Africa

Cape Town, South Africa

Johannesburg, South Africa

Southern Africa ICT Summit



Maputo, Mozambique

GeoPower Africa

East Africa Com

Dar es Salaam, Tanzania

Nairobi, Kenya



7-10 London, UK




African Mine Security

Africa Health


Johannesburg, South Africa

Johannesburg, South Africa




MED Ports

African Utility Week

Casablanca, Morocco

Cape Town, South Africa

West Africa Mining Investment


UMEC Kampala, Uganda

Accra, Ghana

Why Caterpillar’s show is built to work for contractors At CONEXPO-CON/AGG 2014 Caterpillar presents its lineup of machines, technology and services designed with the primary goal of helping customers succeed - under the theme ‘Built for it’ the message being that they are built to work for contractors of all types, aggregates miners, construction materials suppliers and specialty trades. Four Caterpillar exhibit areas totalling about 60,000 square feet of floor space - among the largest total display space at the show - is showcasing more than 40 machines, with integrated technologies that help equipment operators, managers and owners get the most from each machine, each hour of operation and throughout its full life cycle. The newest Cat machines to be displayed include F Series hydraulic excavators, M Series medium wheel loaders, new C Series articulated trucks and G Series off-highway rigid-frame trucks, a new track-type tractor, a new wheel tractor-scraper and a new track drill.


African Review of Business and Technology - March 2014

Caterpillar’s 730C articulated truck

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Bulletin / Communications Airtel Money works with Zambian travel partners

growth rate from 2013-2018, according to a new study, the Cisco Visual Networking Index

Greater coverage by MTN to benefit businesses

The MD of mobile telecommunications

Global Mobile Data Traffic Forecast for 2013 to

MTN’s enterprise customers with global

company airtel Networks Zambia has sealed

2018, which indicates that mobile data traffic

operations are now able to communicate with

a partnership agreement with three Zambian

in the region will increase 14-fold during the

their branches and employees worldwide. This

bus service companies to allow commuters to

period; the report suggests that mobile data

follows the signing of an agreement between

pay their bus fares through the airtel Money

traffic in the MEA region will reach 1.49

MTN and international telecommunications

service; of airtel’s agreement with Mazhandu,

exabytes per month by 2018 - the equivalent

provider PCCW Global, which will enable

Power Tools and Zambia Malawi Bus

of 372mn DVDs each month or 4,105mn text

MTN to expand coverage of its global virtual

Services, Lumpa said, “The new partners will

messages each second.

private network (VPN) to countries where it Asia and North America.

state-of-the-art security systems on the airtel

Imperial sets up long-term deal with Vodacom

Money platform.”

Logistics group Imperial has signed a five-

A satellite tool for Google Earth

year contract with Vodacom for network and

Satellite operator SES has developed an

East Africa Data Centre hosts Kenya Internet Exchange Point

hosting services; with a stable and scalable

online Google Earth satellite tool, which

network critical to Imperial’s growth,

shows all of the company’s satellites in orbit

The Telecommunications Service Providers

Vodacom operates as a strategic partner -

so that people can compare coverage maps

Association of Kenya (TESPOK) has chosen

vital in the delivery of data networks to the

across the globe – all in 3D; available at

The East Africa Data Centre to host the

group’s divisions and operating companies., the tool has just been

enjoy an easy-to-use, versatile and exciting product, which is password-protected through

currently does not have a presence in Europe,

Kenya Internet Exchange Point (KIXP); Dan

updated with a suite of features that bring the

Kwach, general manager at The East Africa

SES network to life.

Data Centre, said, “By keeping African data within the continent we are all helping to build Africa’s digital future.”

Seacom’s new leadership is structured for growth Pan-African teelcommunications network service provider Seacom has unveiled a new senior-management structure designed to cater for the company’s growth plans, changing its leadership team to enhance synergies between regions and functions

Cobus Rossouw, chief integration officer at Imperial Logistics, and Deon Liebenberg, managing executive at Vodacom Business, after signing the five-year deal agreed by the two companies

New signals for better maritime communications Thuraya Telecommunications, a mobile satellite services (MSS) operator, has launched

within the business, as well as position

Taking enterprise mobility forward in Africa

its first dedicated maritime broadband

factor is a new business development group led by Suveer Ramdhani, formerly Seacom’s

NETCB and Novell have introduced a range of

growing segment; Randy Roberts, vice

head of product strategy, which focuses on

mobile solutions for enterprises to enable

president of innovation at Thuraya, said, “At a

Seacom’s strategic growth into new markets

comprehensive mobile device management,

time when the other players are either

as well as evaluating strategic investments

ensure secure mobile productivity and deliver

increasing prices or expecting their customers

and possible M&A targets.

safe file sharing and mobile printing capabilities

to upgrade to unproven platforms, Thuraya’s

Seacom to enter new markets in Africa; a key

terminal as it strengthens its focus on this

from any device; NETCB’s CEO Cobus Burgers

commitment is to maritime users who want

MEA nations to have most mobile data traffic growth

says mobility is expanding rapidly through the

broadband communications at a competitive

African continent, "tangibly enhancing

rate, with hardware they can rely on and

The Middle East and Africa (MEA) is expected

productivity without compromising security".

without the threat of punitive price increases.”

to post the world's fastest mobile data traffic


African Review of Business and Technology - March 2014

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E V E R Y D A Y M I S S I O N D E L I V E R E D . E V E R Y D A Y V A L U E .

Design, comfo r t , quality standards and innovative technology: here it comes the NEW 682, t h e n ew g en er a t ion of h eav y t r u ck s. With its cab inspired by the award winning New Str alis cabs, and powered by Iveco Fiat Power t r ain Cur sor 9 engine , New 682 is available on the on-road and off- road ve r sion. It represents the best mix among reliability, flexibility and perfo r mance , the r ight solution to face a wide r ange of tr anspor ts. New 682. A new breed.

W W W . I V E C O . C O M

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Bulletin / Commerce AB Microfinance serves more smaller businesses

Investing in Somalian economic prospects

markets, new products, new suppliers, service

IFC has signed an agreement to provide

The growing confidence in Somalia’s

with like-minded people in any of the myriad

financing of NGN800mn (US$5mn) to AB

economic recovery process has seen

market categories and sectors it represents,”

Microfinance Bank, to increase access to

institutions like the Eastern and Southern

said John Thomson, managing director of

finance for micro, small and medium

African Trade and Development Bank,

Exhibition Management Services, which

enterprises, to promote financial inclusion,

commonly known as the PTA Bank, lift

organises the event, taking place from 22 to

job creation and grow the Nigerian economy;

sanctions against the country; “We are hopeful

24 June 2014 at Gallagher Convention Centre

Mattias Grammling, managing director, AB

that the Somalia Investment Summit will

in Johannesburg, South Africa.

Microfinance Bank, said, “Improving access to

reassure the Gulf Businesses of the untapped

financial services for MSMEs would hasten

potential that is Somalia,” said Hassan Dudde,

growth in the informal sector. Our

MD of the Somali Economic Forum.

providers and customers, and networking

Cape Town offers an industrial showcase

partnership with IFC will help soften bottle-

After five successful years, the Cape Industries

necks on loan acquisitions and enable us

Showcase is back and on from 2 to 4 July

provide growth opportunities for MSMEs and

2014 in Cape Town, South Africa, and is far

lower income clients to foster job creation

better and bigger than in previous years, with

and economic growth.”

three major areas of clear focus - oil, gas and petroleum; quality products available in these

Ecommerce site markets its service in Uganda

fields and on show this July address

Online African shopping destination JUMIA

systems, drilling, valves and actuators.

exploration and production, pumps, piping

is extending its services to Uganda, providing its new customers with a wide range of products including: fashion, electronics,

Hassan Dudde, MD of the Somali Economic Forum, with British Minister for Africa Mark Simmonds

A key trade event promoting tourism One of the largest tourism marketing events

home appliances, mobile devices and beauty

Ethical prize for Nigerian corporate research

on the African calendar and one of the top

Jeremy Hodara, said, “We see the same potential here and are more than happy to

An annual award from the University of

global calendar, Indaba showcases the widest

provide every citizen in Uganda with a

Exeter in the UK, which encourages the next

variety of Southern Africa's best tourism

secure, convenient and stress-free online

generation of young professionals to put

products, and attracts international visitors

shopping experience.

ethical conduct at the forefront of business,

and media from across the world; the event is

government and the professions, has been

now co-located with We Are Africa, an

BPO growth translates into job creation

won by a young professional from Osun State

exclusive event designed to promote niche,

in Nigeria; this year’s ‘Hutton Prize for

high-end luxury products.

According to South African Contact Centre

Excellence’ has been awarded to Omotoniola

Community (SACCCOM), the nation’s call

Adeeyo, who graduated from the University

centre industry has grown by about eight per

of Exeter’s Law School in 2013.

at; co-founder of JUMIA,

three ‘must visit’ events of its kind on the

Time to get agile in a Cloudbased Office ITC Infotech’s senior vice president and head

cent every year since 2003 – with more than

– infrastructure services Prasad Natu recently

financial year alone; business process

SAITEX acts as a conduit for business into Africa

outsourcing (BPO) operations have become

For the past 21 years, the Southern African

choosing Office 365 can leverage; he said, “In

increasingly popular in South Africa because

International Trade Exhibition for retail ready

today’s high pressure business environment

they reduce cost to companies, and also

products (SAITEX) has attracted local and

the increased flexibility and agility offered by

create greater volumes of sector jobs that

international companies, and business visitors

cloud solutions like Office 365 and the savings

might otherwise not exist as companies

from around the world, all interested in doing

made with an outsourced mail solution can

tighten belts.

business in Africa, and with Africa; “SAITEX is

give SMEs a real competitive edge.”

3,000 new jobs created in the 2012/13

highlighted the advantages that any SME

an ideal platform for discovering new


African Review of Business and Technology - March 2014

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Bulletin / Renewables Uganda targets major CO2 reduction through GET FiT programme

Chinese firm to invest in Zimbabwean solar power development

Boost for South African wind power sector

Powerway South Africa, a subsidiary of the Chinese Powerway Renewable Energy Company, plans to invest US$160mn into the construction of a 100 MW solar power plant in Zimbabwe; Charles Domingo, MD at Powerway SA, said that the firm now hoped to finalise the necessary paperwork so that the project could begin within the next few months, with local media reporting that the company would look to develop the plant in partnership with local renewables company Mobility Holdings, should it receive final New small-scale renewable energy generation projects will add about 150MW of installed capacity to the Ugandan electricity grid (PHOTO: Ivan Prole/

approval from the Zimbabwean authorities.

The Hopefield wind farm will be able to power close to 70,000 low-income homes (PHOTO: Dirk Ingo Franke)

The South African energy grid has been Uganda's Electricity Regulatory Authority

treated to a rare new injection of wind

(ERA) has revealed that the country will fast-

energy following the launch of operations

track the development of up to 15 small-scale

at the Hopefield wind farm on the

renewable energy generation projects

country's west coast; the wind farm will be

ranging in size from 1-20 MW under the

able to generate enough electricity to

internationally backed GET FiT programme;

power close to 70,000 low-income or

promoted by private developers under the

29,000 medium-income homes and follows Gestamp Renewable Industries' (GRI)

government’s Renewable Energy Feed-In Tariff (REFiT) programme, the projects will be expected to add about 150 MW of installed

Powerway will aim to develop the plant in partnership with local renewables company Mobility Holdings (PHOTO: Fernando Tomás)

recent announcement that its South African wind tower manufacturing facility

capacity to the Ugandan electricity grid

in Atlantis, Cape Town, would be fully

within the next three to five years, resulting in

operational during the second half of

emission reductions of 11mn tonnes of CO2.

USA considers Chinese partnerships for DR Congo dam


Kenya hunts for geothermal power project funding

The USA is considering entering into a partnership with a number of Chinese firms

European funding for African renewables

The Kenyan Geothermal Development

to finance the construction of the US$12bn

The European Commission has

Company (GDC) has revealed government

Inga 3 dam in DR Congo, according to US-

announced plans to provide €5mn

plans to construct three power plants that will

based NGO International Rivers; Peter

(US$6.9mn) in new funding towards

exploit geothermal power sources in the Rift

Bosshard, policy director of the NGO, said that

increasing renewable energy usage across

Valley; the GDC is currently hunting for

the US Agency for International

Africa; the funding forms part of the

US$400mn worth of funding for the project

Development (USAID) was keen to

Africa-EU Renewable Energy

from organisations such as the World Bank’s

cooperate with Chinese firms to fund the Inga

Cooperation programme, which was

Multilateral Investment Guarantee Agency,

3 dam, which will form part of the Grand Inga

launched in September 2010 as part of the

with the company stating that it would drill 120

plan – a multi-billion dollar complex of 11

wider Africa-EU Energy Partnership, and

wells for the project's first stage for the three

dams and six hydropower projects stretching

will be aimed at increasing access to

plants, which will be expected to generate a

along the Congo River that will have a

modern and sustainable energy services

total of 300 MW of power by 2018.

combined capacity of 40,000 MW.

across the continent.


African Review of Business and Technology - March 2014

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Bulletin / Minerals Zimbabwe receives proposals for first platinum refinery

Zambia railway line to link copper mines

The Kenyan Ministry of Mining has issued

Zambia’s Northwest Rail Company (NWR)

export permit, allowing the company to

has awarded a 590 km railway line contract to

export from its Kwale mineral sand project

Grindrod Freight Services to link copper

for the first time; mining cabinet secretary

mines from northern Zambian to the border

Najib Balala said the company would

with Angola; Dave Rennie, CEO of Grindrod

export titanium feedstock, including

Freight Services, Ports & Rail, said the

340,000 tonnes of ilmenite, 30,000 tonnes

investment would enable the link up of

of zircon and 80,000 tonnes of rutile

parent company Grindrod's existing

products, annually, with Base Titanium

investments in the North-South rail corridor

adding that it was aiming to export more

with its port operations in Maputo, Richards

than 450,000 tonnes of titanium minerals

Bay and Durban.


Australian firm Base Titanium with an

Ethiopian mining sector witnesses decrease in turnover

Zimbabwe's platinum industry, the second largest in the world, is currently producing 12,190 kg of annual metal output (PHOTO: Alchemist-hp)

Zimbabwe's plan to build a platinum refinery

The Ethiopian Ministry of Mines has

has received a major boost after platinum

claimed that the country's mineral industry

miners met the deadline for the submission

made US$172.6mn in revenues during the

of proposals to construct the facility by the

first half of the current budget year,

end of 2016; President Robert Mugabe's

representing a significant decrease in

ZANU-PF government had set a deadline of

earnings of the sector, from close to

18 January 2014 for companies to send in

US$288mn in the first six months of the last

proposals to build the refinery, which will

budgetary year; a report by Walto

include a 600 MW power plant and will cost an estimated US$3.2bn to build, or risk seeing a ban implemented on raw exports of the

Information Center, which quoted Bacha The new railway will reportedly have a design capacity of five million tonnes (PHOTO: meironke/Flickr)


Faji, the head of public relations of the Ministry of Mines, said that Bacha revealed the Ministry failed to reach its target of US$1bn due to a worldwide slump in gold

GlencoreXstrata announces rise in African ferrochrome and copper production

Base Titanium granted export permit

prices and the inability to attract more investors into the sector.

in its African production of ferrochrome

South African unit to clamp down on illegal mining

and copper in the 12 months to 31

The elite police unit in South Africa has

December; the global mining giant

vowed to hunt down those responsible for

revealed its ferrochrome production rose

widespread illegal mining, after more than

32 per cent to 1.2mn tonnes due to what it

200 men were trapped down an

termed better utilisation of smelters and

abandoned gold mine last month; Major

furnaces, as well as the commissioning of

General Shadrack Sibiya, who heads

the Tswelopele pelletising plant in South

Gauteng's crime busting unit the Hawks,

Africa, while its total own-sourced copper

said the force would crack down on the

production rose 26 per cent to 1.5mn

gangs running illegal mining operations,

GlencoreXstrata reported solid increases

tonnes, with Central African copper alone rising 43 per cent to 398,600 tonnes.


Base Titanium will look to export 80,000 tonnes of rutile products annually from the Kwale mineral sand project in Kenya (PHOTO: Didier Descouens)

African Review of Business and Technology - March 2014

declaring, "We cannot allow this to continue."

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The Sustainability of Power Coelmo and Abdosh International successfully deliver innovative Full Hybrid Systems to Ethiopia


IESEL GENERATORS ARE the most reliable means of distributed power production in most applications, such as residential, commercial, telecom, oil and gas and military, just to name few. However, the increasing cost of fuel and the considerable environmental impact of combustion engines are increasing the attention of users on renewable energy, such as solar and wind. Despite this, the use of renewable energy is restricted by its reliability in power production, depending on uncontrolled environmental conditions such as sun irradiation and wind. Even when combined with storage systems as batteries. Thanks to three years of research and more than €4mn investment (US$5.4mn), Coelmo has developed an innovative hybrid solution, combining the reliability of generators with the sustainability of renewable energy, solving the trade-off between reliability versus increasing operational cost in traditional generator solutions and sustainability versus low predictability in pure renewable energy systems. Coelmo’s Full Hybrid System is an effective combination of a generator, photovoltaic panels and deep cycle batteries, able to deliver the lowest operational cost to those users that need a

In the picture, from left: Abdufetah Abdulahi (Abdosh International Deputy Manager), Abdurahman Abdulahi (Abdosh International CEO), Marco Monsurro’ (Coelmo CEO), Jacopo Monsurrò (Coelmo Dubai Branch Manager)

power system deployed twenty-four/seven on field, with the highest standard of reliability and service intervals. The system is completely managed by Integra, Coelmo’s patented electronic management system, which ensures to the customer the most efficient savings results with best in class ease of use.

Producing power, cost-effectively

Coelmo Full Hybrid System

Once installed, Coelmo Full Hybrid System is driven by power produced by the photovoltaic panels, combining it with power produced by the generators, either AC or DC, variable speed or fixed speed, and deep cycle batteries, achieving the lowest operational cost available today on the market per kWh produced. With several Full Hybrid Systems already tested and installed in 15 countries, today Coelmo is bringing this cutting-edge innovation to Ethiopia in cooperation with Abdosh International. Thanks to the engineering department of

Abdosh International, Coelmo Full Hybrid Systems have been designed, installed and tested in Ethiopia, withstanding the most severe environmental conditions and endurance cycles. Today, when an application demands affordable, reliable and low environmental impact power systems in Ethiopia, Coelmo Full Hybrid System is the right solution. Coelmo, founded in 1946 in Italy, is one of the largest European manufacturers of Industrial and Marine generating sets, with three production plants and considerable market shares in 43 countries worldwide. Abdosh International is the exclusive dealer of Coelmo, FTP (previously named Iveco Motors), Esab and Chicago Pneumatic, to name a few. With two showrooms in Addis Ababa, workshops and highly specialised engineers, Abdosh International is the largest supplier of electrical and electromechanical products and services in Ethiopia. n

African Review of Business and Technology - March 2014


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African Review/On the Web

A selection of product innovations and recent service developments for African business Full information can be found on

The minister hopes to implement the BIP in iron ore, so that Nigeria can become a net exporter of iron ore (PHOTO: Odan Jaeger/

Hinduja Group looks to expand business in Africa Indian conglomerate Hinduja Group has said it is keen to expand business across the African region, especially in the automotive, technology and energy sectors. At a recently-concluded World Economic Forum (WEF) event, Prakash Hinduja, Europe chairman of Hinduja Group, said the company was planning to expand its Ashok Leyland vehicle business across Africa depending on the capacity and demand in each country, while noting the potential Africa holds for Indian companies.

Nigeria plans to develop iron and steel sub sectors Olusegun Aganga, Nigeria's minister for industry, trade and investment, has said that plans have been concluded to develop and implement a comprehensive Backward Integration Policy (BIP) for the iron and steel sub-sectors of the Nigerian economy. Aganga noted that the initiative was in line with the Nigeria Industrial Revolution Plan (NIRP), which has been strategically developed and linked with sectors of the economy where the country currently has a competitive and comparative advantage, such as in mines, steel and agri-business.

Central Bank of Nigeria adopts SWIFT infrastructure The Central Bank of Nigeria’s high value payment system has gone live on SWIFT. According to the Society for Worldwide Interbank Financial Telecommunication (SWIFT), the move is a key element of the Central Bank of Nigeria’s Payment System Vision 2020 (PSV2020), which calls for a ‘nationally utilised and internationally recognised’ payments system and provides a robust platform to support Nigeria’s continued economic growth.

Zambia Railways on 'path to recovery' Zambia Railways (ZR) has signed a US$51mn contract for a state-ofthe-art signalling and telecommunication project. The project will be jointly undertaken by leading international firms Bombardier Bombardier, Huawei and GMC Technologies will be involved in and Huawei, as well as local delivering the US$51mn railway project (PHOTO: fcl1971/ company GMC Technologies. According to ZR chief executive officer Muyenga Atanga, the signing ceremony represented a big leap towards bringing back the lost glory of the railway firm whose fortunes have tumbled in recent years.

AfDB pledges US$40mn to boost electricity coverage in Rwanda The African Development Bank (AfDB) has signed an agreement with the Rwandan government to provide the country with US$40mn for the expansion of its electricity network. According to the AfDB, the money

will go towards construction of a 119 km transmission line from Rusumo Power Plant to Birembo substation in Kinyinya, Gasabo district. energy-a-power/transmission/

Congolese airline announces first commercial route from the Middle East

The SWIFT system ensures Nigeria complies with global standards for critical payment infrastructure as set out by the Bank for International Settlements (PHOTO: SWIFT)


African Review of Business and Technology - March 2014

Equatorial Congo Airlines (ECAir) is set to launch its first commercial flight from Congo-Brazzaville to Dubai by 31 March 2014. The flight will be operational three times a week, between Dubai International Airport and Maya-Maya Airport in Congo-Brazzaville. The new route will operate a Boeing 757 aircraft configured with 16 business class and 132 economy class seats.

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What’s in a name? Why private limited companies are the third most popular business type in Nigeria, after sole proprietorships and partnerships


private limited liability company (publicly known as a ‘limited’ or ‘ltd’ enterprise) offers a more formal business structure than a simple ‘business name’ firm. This type of business structure can be formed by at least two people, up to a maximum of 50 members (called shareholders, subscribers or directors), who subscribe to the company by way of ownership in the company’s shares. Members of a limited company have liability only up to the extent of their individual investment in the company so formed. Why a limited liability company? Private limited companies are by very definition different from ‘business names’ in composition, formation procedures, legal implications and company lifespan. A limited company can continue to trade despite changing its directors and shareholders unlike a ‘business name’, which usually dissolves after the death of the sole proprietor or partner. There are several reasons why private limited companies have become more attractive to prospective business owners and investors. First is the ‘limited liability’ clause. A shareholder in a private limited liability company can share the loss of the company so formed only up to the extent of his direct

The law requires every company to provide audited accounts, tax and capital allowances computations in writing each year

investment in the company. However, a sole proprietor may lose all assets (including his personal estate and direct contribution to his business) in the event of loss, liquidation,

court injunction and debt. The personal assets of the sole proprietor, even if unconnected with the business, can be applied in meeting the obligations of the business. However, the

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directors of a private limited company are only liable if they continue to trade and incur liabilities after it becomes apparent the limited company is insolvent. Hence, in forming a private limited company, you may need to separate your personal assets from your company assets, making each one assume a separate legal entity. This is ideal if your landed property, which is also your business location, is your registered business address. Secondly, a private limited company enjoys some level of reputation from buyers, suppliers, financial institutions and investors over and above the sole trader by reason of a more formal approach in the limited company’s administration and management. A sole trader basically pleases themselves with regard to the administration and management of the business. A company director is responsible for adhering to company administration according to statutory regulations, in regard to both the limited company accounts, statutory books and management as stated in the articles of association. The duties of a director are more formal than a sole trader. By law, he or she can offer company shares for sale by way of private placement in order to raise more funds to grow and expand the company. However, one of the major disadvantages of this type of structure is that the tax burden on individual members is higher since the company is subjected to corporate tax while the individuals still suffer tax on their share of earnings by way of dividend.

There are several reasons why private limited companies have become more attractive to prospective business owners and investors” Statutorily, the Companies and Allied Matter Act (2004) of the Federal Republic of Nigeria provides for the requirements of people wishing to come together to form a company. It stipulates, “An individual shall not be capable of becoming a member of a company if he is of unsound mind and has been so found by a court in Nigeria or elsewhere; or he is an undischarged bankrupt. A person under the age of eighteen years shall not be counted for the purpose of determining a legal minimum number of members.”


Registration process The question now is, “How can a private limited company be formed or incorporated in Nigeria?” Having been directly involved in business registration matters for more than four years now, I can adequately say that company formation procedures begin with engaging the services of an accredited specialist – lawyers, chartered accountants and chartered secretaries accredited by the Corporate Affairs Commission (CAC). It is important, also, to decide on a suitable name, and submitting such a name through your agent for approval and reservation at the CAC. Once your proposed name has been approved and reserved, then more important aspects of the company formation process can continue. The bureaucratic hurdles involved in such registration process include: preparation of the requisite incorporation documents and payment of the stamp duty; registration requirements, which are more complex and the cost of registration much higher than for sole proprietorship or partnership; the duration for completing incorporation for a private company may be 34 working days or less. A verified copy of the memorandum of understanding (MoU) and articles of association are important documents that accompany your certificate when your company is finally incorporated. This document, among other matters, shows the name of the company so formed, the amount of share capital, the objects of the company, and the names of the subscribers and number of shares allotted to each of them. Share capital One of the questions usually on the lips of people who want to incorporate a company is: “What does ‘share capital’ mean, and why is a ‘one million’ share capital so common?” The issue of share capital raises the question of how strong the company is and the worth of the company in monetary terms. Shares mean the amount of rights you own in a company. The minimum share capital we register in Nigeria is one million because registering less still carries the same cost of registration. Besides, a one million share capital is only nominal, and you don’t need to have one million naira in the bank before you incorporate a one million share capital company. If you own 500,000 naira worth of shares in a one million share capital company, it means you own 50 per cent of the company. There are some companies that the CAC statutorily specifies for a higher minimum share capital when registering them - banks,

African Review of Business and Technology - March 2014

The issue of share capital raises the question of how strong the company is and the worth of the company in monetary terms” insurance companies, travel agencies, broking firms, security agencies, registrars, bureaux de change, Forex companies, etc. Authorised share capital is also referred to, at times, as registered capital. It is the total of the share capital which a limited company is allowed (authorised) to issue. It presents the upper boundary for the actual issued share capital. Filing of returns The law requires every company (including a company granted exemption from incorporation) to, at least once a year without notice or demand, make and deliver to its board a return in the form of: ● The audited accounts, tax and capital allowances computations and a true and correct statement in writing containing the amounts of its profits from each and every source. ● A declaration which shall be signed by a director or secretary of the company that the returns contain a true and correct statement of the amount of its profits computed in respect of all sources and that the particulars in such returns are true and complete. ● For newly incorporated companies, the submission shall be within eighteen months from the date of its incorporation or not later than six months after the end of its first accounting period, whichever is earlier. For Existing Companies – companies that have been in business for more than 18 months – the submission shall be not more than six months after the close of the company's accounting year. Filing early returns is profitable. Issues for structures Conclusively, there are myriads of issues that relate to this type of business structure. The Companies and Allied Matters Act (2004) provides necessary regulatory framework for incorporation of companies. It’s best you consult an accredited professional to advise you appropriately. ■ Ayokunle Bankole CEO, Loud Media

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Acting for infrastructure

Lamido Sanusi, governor, Central Bank of Nigeria, at Build Africa


he inaugural BUILD Africa Forum, taking place in Brazzaville, in the Republic of the Congo, was a remarkable success, gathering 849 participants representing 49 countries and 85 speakers from five continents (including 10 African ministers) over two days. Those attending included: H E Denis Sassou N’Guesso, President of the Republic of Congo; Vicente Fox, former President of Mexico; Abdoulaye Wade, former President of Senegal; Sanusi Lamido Sanusi, governor of the Central Bank of Nigeria; Dr Elham Mahmoud Ahmed Ibrahim, commissioner for infrastructure and energy for the African Union; Jean-Jacques Bouya, minister to the President of the Republic of Congo for spatial planning and delegate general for Major Public Works; Dominique Lafont, president of Bolloré Africa Logistics; Otavio Azevedo, President of Andrade Gutierrez; Mario Pezzini, director of the OECD Development Centre; and Robert Gumede, founder of Guma Group. Debates led to the following recommendations for immediate action from both public and private sector players: ● Local capacity building on public private partnerships (PPPs), long-term planning and phasing, strong political will, as well as transparent coordination between public and private players. ● Feasibility studies to cope with investors' aversion to risk, with government support to increase the level of bankability of some projects, whilst managing public debt. ● Regional integration, which is a necessity for African economies to compete in a globalised world, to complement each other in all sectors from transport, to trade and telecommunications. ● Economic development strategies to create sustainable value locally, both in terms of taxation revenues and job creation. ● Ensuring infrastructure serves development and stakeholders work to develop human capital in the long run through education, training and capacity building. ■

African Review of Business and Technology - March 2014


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Investing in African hospitality Hundreds of millions of dollars are being channelled into the construction of more than 2,200 rooms and suites spread between 15 hotel properties in 13 African countries


angalis Management Group, the hospitality management arm of Inaugure Hospitality, has set a 21st century African hospitality benchmark in terms of brand development and hotel management, incorporating a truly international vision. Its new hotel brands - Noom, Noom Residences, Seen and Seen+ - are inspired by what the group itself terms as the African ‘joie de vivre’, covering market segments from economy to upper-midscale. Mangalis was founded in 2011 by successful West African conglomerate Teyliom International. Teyliom International entered the African hospitality market in 2009, when it opened the Radisson Blu Dakar, a multi-award-winning property that demonstrated Teyliom’s ability to build and oversee the management of a successful hotel. While Inaugure Hospitality Group is a forward-thinking investment group, Mangalis is its brands development and hotel management arm. Last year, the group re-confirmed its business strategy of investing €315mn (US$426.5mn) in Africa. The different phases of the project comprise the construction of more than 2,200 rooms and suites spread between 15 properties in 13 African countries. Management benchmarks In addition to constructing its own hotels to showcase their brands, Mangalis’ objective is to be among the five largest hotel groups active in Africa by 2017 - reaching the 40+ properties milestone by management contracts, while being the industry undisputed benchmark in terms of products, innovation, quality of service and healthy growth. The top executives’ team behind the project includes previous experience with Accor, Jumeirah, Ritz-Carlton, Mandarin Oriental and AC Hotels by Marriot. Mangalis’ new brands were designed specifically for new travellers, covering the economy market segment with Seen and Seen+, as well as the upper-midscale segment with Noom Hotels and Noom Résidences. These new and innovative hotels are inspired by today’s Africa: attractive, modern, friendly, connected, open and exciting. There are 15 Noom, Noom Résidences, Seen and Seen+ hotels currently being constructed under the group ownership in several main cities of Africa. Denis Sorin, CEO of Mangalis Management Group, has stressed, “The African flair and ‘joie-de vivre’ are embedded into our brands’ values, while the level of operational standards made them ready to be exported in any part of the world where they will bring a fresh perspective. Mangalis Management Group is now the only Africa-born hospitality group that offers a comprehensive selection of well-designed brands inspired by Africa with a true international vision.”


African Review of Business and Technology - March 2014

The new brands from Mangalis include Noom Hotels

Sorin added, “We believe that the African market has been poorly treated for far too long by regional and international groups, and we intend to bring true international standards and the highest quality of service to a market that is longing for it.” The success of Mangalis Management Group and its brands rests in Mangalis’ ground-breaking business model built on four main pillars: people first, innovation, streamline efficiency and social responsibility. Because the hospitality industry is a people industry that works for people, Mangalis invests a lot in its workforce through the people first pillar. Innovation is at the core of the business model, while streamline efficiency ensures the best possible hotel management services. Mangalis aims to be recognised as a Citizen Company of reference, by placing corporate social responsibility at the heart of its operational standards. As the group development relies on management contracts as well, Mangalis is proposing to investors and hotel owners a never-offeredbefore turn-key model and a comprehensive list of paths to success. In order to ensure that Mangalis-developed brands keep their innovative edge, the group has implemented a distinctive research and development think-tank called MangalisLab. Furthermore, its thorough sales and revenue management solution is backed by one of the most advanced loyalty programmes available today on the international market - AvantGarde by Mangalis - in order to develop and ensure guests’ long-lasting fidelity. Sorin noted, “The brands developed by Mangalis Management Group aim at placing for the first time ever Africa on the world map of home-grown pioneering hospitality companies, and change the way guests, hoteliers and investors alike are doing business across the African continent and beyond.” ■

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Accelerating agricultural plans Campaigning to reduce poverty through policy change to suit targeted agricultural investment


o Agric, It Pays - a campaign started by campaigning and advocacy organisation the ONE Campaign - calls for African governments to commit to spending at least 10 per cent of national budgets on effective agriculture investments, through transparent and accountable budgets. At the heart of the Do Agric campaign is an effort to push political leaders to adopt better policies that will boost productivity, increase incomes and help lift millions of Africans out of extreme poverty. Nigerian singer-songwriter D’banj was on hand for the Do Agric, It Pays kick-off event in Addis Ababa recently. Civil society partners at the launch on 30 January 2014 included the Pan African Farmers Association (PAFO), ActionAid International, Acord International, Oxfam, East and Southern African Farmers Forum, ROPPA, Southern African Confederation of Agriculture Unions, the Africa Union Commission, Becho Welisho and the Alliance for Green Revolution in Africa (AGRA). Campaign champions include Tanzanian President Jakaya Kikwete, Beninois President Dr Thomas Yayi Boni and Côte d’Ivoire footballer Yaya Touré. A new ONE report, called Ripe for Change: The Promise of Africa’s Agricultural Transformation, calls on African governments to implement an “enhanced CAADP” package of policies to accelerate economic development in Africa through an African-led agricultural transformation agenda steered by the AU’s own Comprehensive Africa Agriculture Development Programme (CAADP). The package of policy recommendations, developed after a lengthy consultation process with African farmers and farmers associations from all over the continent, includes: ● Make time-bound commitments to meet the Maputo pledge of spending at least 10 per cent of national budgets on effective agriculture investments, through transparent and accountable budgets. ● Eliminate the gender gap in agriculture. ● Strengthen land governance and security of tenure rights. ● Reduce barriers to intra-regional trade. ● Increase R&D investment to at least one per cent of agricultural GDP and bolster extension services. ● Integrate sustainability and climate resilience into national agriculture plans. ● Prioritise the reduction of post-harvest loss in national agriculture plans. ● Design nutrition goals into agriculture sector strategies. ● Foster an enabling environment for smallholder integration and responsible private sector investment. ● Accelerate implementation of agriculture plans and ensure results for smallholder farmers.


African Review of Business and Technology - March 2014

The Nigerian singer-songwriter, D’banj

The report also highlights recent success stories resulting from increased agriculture investment and enhanced CAADP-style policy reforms, such as those in Ghana, Ethiopia and Burkina Faso. In Ghana, agriculture is the biggest driver of poverty reduction, with initiatives such as credit reform, targeted subsidies for farmers, and new infrastructure supporting private sector investment, particularly in the cocoa sector. Perhaps no country illustrates the opportunities that agricultural investment can unlock better than Ethiopia. Three decades after experiencing a devastating famine that captured the world’s attention, the country has boosted cereal production and emerged as a leader in agricultural innovation, with an agriculture growth rate of seven per cent on average since 2003. In Burkina Faso, the government spends 10 per cent of its budget on agriculture, resulting in growth rates of more than six per cent per year in the sector. Following reforms, cotton production has tripled, leading to export earnings of US$165mn and household income growing by between 19 per cent and 43 per cent. Dr Moyo added, “The good news is there are real success stories across the continent to build upon. These African-led successes must now be scaled, adopted and adapted across the region so that small farms can become small firms, young people can find good jobs and African economies can thrive. This virtuous cycle of agriculture-led industrialisation will bring stability and prosperity across Africa. This is the future for African agriculture we can create together, if we seize the great opportunity of 2014.” ■

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South Africa


The incentive-based way to fight water loss With non-revenue (ie, wasted) water estimated to cost South Africa’s economy a massive ZAR7.2bn (US$650mn) per year, the national government is aiming to usher in a new era of frugality with an innovative, incentivebased approach towards tightening the taps on water loss


he South African government is using enough to fill 4.3mn average sized Consumers in South Africa are often an innovative, incentive-based swimming pools. forced to drink from polluted rivers approach towards tightening the taps The causes for water loss are numerous, on water loss. and include such factors as ageing Starting in 2014, the No Drop Report, an infrastructure, theft and a culture of high initiative of the Department of Water Affairs water usage. (DWA), will see in-depth assessments being Part of the DWA’s robust Water Services conducted across all 237 of South Africa’s Regulation Strategy, the No Drop Report local municipal districts, subsequently seeks to zoom in on these factors and plug ranking municipalities from least to most up an increasingly leaky boat. wasteful and leaving the main culprits red“The No Drop Report aims to address the faced. wide range of causes for water loss in South “Our slogan for this initiative is ‘Every Drop Africa, force Water Services Authorities to Counts’. This pertains to the fact that all our address them and consequently fill in the major industries, such as mining and gaps in research,” Khumalo describes. agriculture, centre around water,” says DWA There is no place to hide for spokesperson Themba Khumalo. municipalities: a number of stringent Due to be published bi-annually, the No criteria have to be fulfilled if No Drop Drop Report builds on the successes of two Certification is to be awarded, and an similar programmes - the Green and Blue enforcement protocol will be used to deal Drop Reports - which measure the with cases where little to no cooperation is management of drinking water quality and provided by the municipality in dealing wastewater respectively, reflecting these as with identified shortcomings. percentages based on thorough The comprehensive range of criteria assessments of water supply systems. includes well-maintained infrastructure, correct billing and metering “The No Drop Certification scorecard seeks to select the key areas systems, thorough understanding of local water efficiency, strategy (institutional, social, technical) required for the sector, that if planning and implementation, skilled technical ability, asset strengthened, will help improve the current level of water losses and management and community awareness programmes. non-revenue water in the municipal sector,” Khumalo explains. These complex criteria and a host of sub-criteria have been carefully devised, and 90 per cent of them need to be met if a No Striving for a No Drop country Drop status is to be awarded. The most recent research on water loss, published by South Africa’s A strategy for incentive based regulation of water use efficiency that Water Research Commission (WRC) in 2012, is based largely on maps out the approach, measurement, criteria, scoring, timeframes, estimates, as 55 per cent of municipalities do not know the extent of and reporting involved in the implementation of the No Drop their water losses. Certification, has been circulated to Water Services Authorities to allow However, information extrapolated from the remaining 45 per cent them to prepare for the assessments. of municipalities indicates that 36.8 per cent of provided water in “We decided that municipalities needed to prepare themselves South Africa, the 30th driest country in the world, is wasted. This is in properly and take all the necessary steps to save every drop,” says line with the world average of 36.6 per cent, but is damaging for a Khumalo. water-scarce country, and well below the globally accepted guideline According to Khumalo, assessments will be carried out across all of 25 per cent. nine provinces simultaneously, with the results due to be presented at In total, South Africa loses 1.58bn kilolitres of water annually, the 5th annual Municipal Water Quality Conference in July. ■

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Satellite Communication

Connecting fleet worldwide Globecomm offers high-end services for marine vessels at effective prices and achievable goals


n January 2012, Globecomm was selected by Ericsson as a sub-contractor for the maritime VSAT service provider for a machine-to-machine (M2M) network to operate aboard with more than 300 container vessels for the largest shipping company worldwide. The primary purpose of the network is to provide end-to-end automated monitoring of refrigerated containers for quality control purposes. The maritime network extends aboard ship a worldwide M2M solution being implemented by AT&T. The shipboard solution includes GSM mobile services connecting to monitoring equipment in each container but also capable of supporting voice and SMS service for crew calling. Satellite connectivity used for M2M traffic can also be used for broadband services. Globecomm provides its se@FLEX VSAT service, including integration of shipboard terminals accessing Ku-band satellites as a

part of Ericsson’s rollout, and utilises Globecomm’s Hosted Wireless Services. The global se@FLEX VSAT platform provides automatic roaming between Kuband satellite beams on a global basis at a flat rate. The global system accesses over 20 satellite beams operating through 13 teleports including fibre backhaul to the Globecomm Data Center in New York. The Hosted Wireless Service provides hosted Base Station Controller (BSC) services, Base Transceiver Station (BTS/BSC) monitoring and performance management using Ericsson equipment. Key features of the service include guaranteed CIR over KuBand coverage reaching more than 95 per cent of global shipping lanes; seamless and automatic switching between Ku beams, and to L-Band service, for true global coverage; onboard GSM mobile network for crew welfare and M2M communications and future convertibility options to Ka-Band service platforms.

Globecomm World-Wide Ku-Band Coverage


African Review of Business and Technology - March 2014

Globecomm worldwide Ku-Band coverage Globecomm is responsible for installation of the below deck equipment (Comtech 570L modem, Comtech ROSS server, WTI RSM8R8-2 Console switch, Cisco 2800 series router, UPS Evolution 1550VA and Rittel 19inch rack), satellite bandwidth and backhaul connection to the worldwide web. Globecomm chose to implement Comtech’s Vipersat technology that combines the price-effective cost-benefit of a shared bandwidth service with outstanding QoS capabilities, low latency and low jitter connectivity. It also provides instantaneously true MIR (Minimum Information Rate) and CIR (Committed Information Rate) bandwidth allocation. The Roaming Oceanic Satellite Server (ROSS) is an integrated location server that works in conjunction with the Vipersat Management System (VMS) to facilitate onthe-move satellite communications for oceanic vessels. ROSS enables remote modems to interface with stabilised, autotracking antennae, maintaining connectivity as vessels move through footprints of different satellites. Shipboard communications Globecomm’s IP Terrestrial Network provides the terrestrial transport to interconnect the teleports terminating the VSAT services with the core network elements that provide the termination and management of the data services carried by the network. Globecomm owns and operates a high availability global fibre network. The teleports required for global coverage are either on this network or are connected to it via known third party suppliers. The hosted core network consists of the GSM network switch and associated GSM network elements. The Hosted Core is owned and operated by Globecomm and is located at Globecomm’s headquarters in Hauppauge, New York. ■

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Tailored solutions to secure facilities Measures must be taken to ensure effective security in educational environments


chools and universities in Africa and the world over are faced with many security challenges, including burglary, vandalism, bullying, drugs and other crimes. As a result, security solutions have become a critical component in ensuring the safety of students, teachers and visitors at any educational facility. While there are many technologies that can assist in combatting these problems, security is never a ‘one size fits all’ solution, and often the educational sector is faced with tight budgets, which

further exacerbate this challenge. Systems need to be tailored to meet the specific needs of each individual educational environment, and integrated to deliver proactive, holistic security, in order to deliver maximum value within budget constraints. Safeguarding students and staff Similar to any home or business, educational facilities are often the target of opportunistic break-ins, where anything from chairs and tables to expensive hardware and computer

equipment may get stolen. Other problems common at educational facilities include student unrest, and hijacking amongst others. Safeguarding the students and staff, as well as protecting the assets of schools, universities and other training facilities, is critical. It requires a strategic approach to security, harnessing the latest technologies in an integrated fashion to ensure measures can be taken proactively to minimise the effects of these issues. CCTV systems form one of the core components in the security arsenal.

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Sophisticated pan-tilt-zoom cameras can even be used to monitor areas

Perimeter-fencing solutions can also be implemented to sound an alert if intruders come within a certain proximity of fencing

Visible cameras can act as a significant deterrent in many instances and also ensure that evidence can be presented in case of an issue. However, simply implementing a CCTV system is a reactive solution, as footage is only useful after the fact and cannot actively prevent problems from escalating. Combining

CCTV with remote monitoring and linking this into a reaction service can ensure that problems can be tackled in a more proactive fashion. Cameras with remote monitoring can be installed inside classrooms, around perimeter fencing and in public spaces - with advances in wireless technology, there are

practically no limits, and any issue can be identified quickly for an appropriate response. Sophisticated pan-tilt-zoom cameras can even be used to monitor large areas such as playing fields, but require manual operation and monitoring to ensure success. This can help to prevent theft, vandalism and bullying, and can

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African Review of Business and Technology - March 2014

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also be used to identify the culprits of any of these incidents should they occur. Access with a more holistic approach Aside from CCTV there are several other solutions that can be implemented and integrated for a more holistic approach. Access control can enhance security, as well as decreasing administrative tasks. Biometric

and card reader solutions can both ensure that unauthorised access is prevented, as well as providing an accurate list of all students and staff members on the premises at all times. Biometric readers have an additional advantage, as cards can be lost, stolen or leant to others, while biometrics cannot, adding yet another security layer. In addition, these solutions can be integrated with CCTV to verify the identity of those gaining access to different areas with a visual aid. Access control solutions can generate a roll call of students on the school premises, simplifying administrative tasks around compiling manual attendance lists. Perimeter-fencing solutions can also be implemented to sound an alert if intruders come within a certain proximity of fencing. This can prevent access via unmonitored areas and can also deter drug dealers from approaching students through fencing. Again this can be integrated with CCTV to provide visual confirmation of events and identities. Fire solutions and alarms can be linked to access control as well, to ensure that in the event of an emergency, doors can be automatically opened and an accurate roll call can be delivered to validate that no students are missing. Ultimately, while there are many technologies available that can enhance security in the educational sector, determining the correct solution requires examination on a case-by-case basis. The environment, location and demographics of the area need to be analysed and typical issues determined so that the right mix of solutions can be designed. These solutions should then be integrated to ensure maximum efficiency, a proactive approach, and enhanced value for spend to ensure budgets are met. â– Marius MarĂŠ CEO, Jasco Security Solutions

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Is tech good or bad for work-life balance? Innovations can help to create the flexible workspaces needed for greater productivity and profitability, and Regus business centres offer just that


he number of mobile internet devices is set to outnumber humans by the end of this year. According to Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2012-2017, there will be more smartphones and Internet-connected tablets and monitors than there are people on the planet. Africa will be one focal point of the boom in smartphones. Microsoft/Huawei and Samsung are launching new smartphones for the African, and Blackberry is already well established there. Over 2012-17, Africa is predicted to have the strongest mobile data traffic of any region, increasing more than 17fold over the period, a Cisco Visual Networking Index report says. Clearly, smartphones are hugely

empowering for Africa. They’ll spur the growth of entrepreneurship and local businesses, and bring improvements to areas of life including healthcare and education. But, at the same time, 24/7 technology brings market with it stresses and strains, making workers feel they’re always on call. These feelings may be exacerbated as manufacturers find new ways to keep us online. In the USA, Sergey Brin of Google and other early adopters are already wearing the Google Glass - spectacles which allow wearers to use the internet. And it’s widely expected that Apple will launch a smartwatch. If we don’t even have to reach into our pockets for our phone in order to connect to work, it’s going to be harder than ever to switch off.

Positive or negative? In a recent global survey by Accenture, 78 per cent of workers said technology lets them be more flexible with their work schedules. But 70 per cent said technology brings work into their personal lives. Feelings are clearly mixed. Technology has facilitated the 24/7 working culture, but other things have fed into it too. Businesses are interacting with customers and colleagues in different time zones, and staff is increasingly expected to be available for latenight or early-morning calls. And the global downturn forced many workers to take on additional duties and longer working hours. The positives of work-anywhere technology Let’s not blame everything on technology. And let’s not forget the very positive changes

There are now more than one million customers in 100 countries using Regus flexible workplaces


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Offices TECHNOLOGY that technology has brought to work and work-life balance over the past decade. Think how much easier it is to do your job when the cloud means you no longer have to go to the office to access corporate information or applications. Remember how video-conferencing has reduced the need for time-consuming corporate travel. Both those benefits are possible because technology allows people to work anywhere. It’s no coincidence that the launch of devices such as the Blackberry in 2003, the iPhone in 2008 and the iPad in 2010 has been accompanied by a steep rise in the number of people using Regus business centres and drop-in business lounges to work. There are now more than one million customers in 100 countries using Regus flexible workplaces, because people are choosing to work at locations that suit them and their customers, instead of doing the old-fashioned fixed, daily commute. In the latest edition of the Regus Work-Life Balance Index, 41 per cent of respondents globally said their companies were doing more to help employees reduce commuting than two years earlier. In the A Better Balance report by Regus in May 2012, the percentage was higher than the global average in several African countries, including Morocco, Nigeria, Tanzania and Tunisia. Working remotely can save the average employee 79 hours of commuting each year. It also cuts their travel costs and car emissions, the Joanne Bushell, vice-president Africa, Regus Cisco report said. It’s probable that flexible working and other measures to cut commuting are some of the reasons why 61 per cent of people in the Regus Work-Life Balance Index 2012 said their work-life balance was better than in 2010. The negatives of 24/7 management models The negative aspects of 24/7 mobile technology arise because of management cultures. People use mobile devices and technology for work outside office hours because their bosses or clients expect them to. So it’s not their phones that are preventing them from relaxing, it’s other people. As smartphone ownership and usage proliferate in Africa, we need to intensify the debate about work-life balance and people’s availability in a 24/7 world. Sure, people may need to do late-night conference calls, but they may be happier to do so if flexible working patterns let them cut their commuting time or juggle home and work commitments. And office workers may need to think about their own habits too. One reason why colleagues and clients can easily reach us out of hours is that we’re already online - using social media or checking the football scores. We’re more likely to hear the ping of an email arriving, so we’re more likely to deal with it. The sender assumes we’re happy to work out-of-hours, and bombards us even more in future. It’s not just employers who need to learn the lessons about technology, presentation (at the desk or on the end of the phone), and how we can work most productively, it’s also ourselves. ■ Joanne Bushell, vice-president Africa, Regus

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Eco-friendly transport solutions How Budget El Gouna’s ‘green’ transport services have followed initiatives by Orascom Development and Ezz Elarab Automotive Group


rascom Development has been working with Ezz Elarab Automotive Group, Budget Rent a Car’s (Budget) sole agent in Egypt, on the introduction of Budget’s new transport services for El Gouna. This is the first time Budget is offering its full suite of transport services - including taxi, car rental, limousine, and shuttle services for any resort in Egypt - and is in line with its strategy of providing premium transport services to the Egyptian market. The new business is handled by a new operating company, Budget El Gouna, formed by Orascom Development and Ezz Elarab Automotive Group. In a recent press conference, Samih Sawiris, CEO and chairman of Orascom Development said, “We’re delighted to be partnering with Budget to provide premium transport services in El Gouna as they are renowned for their outstanding levels of quality and safety. Their services will enable residents to enjoy more of El Gouna while visitors will have the opportunity to discover all that El Gouna has to offer, using comfortable and convenient modes of transportation. Such hi-end services are elements Orascom Development consistently strives to bring El Gouna’s residents and visitors.” Hesham Ezz Elarab, president of Ezz Elarab Automotive Group of Companies noted, “We’re very pleased to be working with one of the first resorts in Egypt to continuously offer innovative and high-end services to its clientele as well as care about environmental sustainability. Our line of eco-friendly transport services will help and ensure that El Gouna soon becomes a sustainable city. We look forward to a long standing and mutually beneficial partnership.” Transport for future generations Orascom Development’s flagship resort, El Gouna is built on 10 kilometres of secluded coastline, spread across islands and lagoons.


Eng Samih Sawiris, chairman of Orascom Development, and Eng Hesham Ezz Elarab, president of Ezz Elarab Automotive

Boasting award-winning architecture, it is the only fully fledged town on the Red Sea Riviera. The year-round sunshine destination features world class amenities as well as some of the first hotels in Egypt to be awarded the Green Star Hotel Certification. In keeping with both companies’ support of ‘green’ initiatives and environmental sustainability, Budget’s transport services will help to preserve the harmony of the resort for future generations. Budget’s eco-friendly fleets of hybrid cars combine a petrol engine with an electric motor. Around El Gouna, cars can run on electricity alone, thus reducing carbon emissions. Budget’s transport services will be available to both residents and visitors and is designed to make El Gouna’s outstanding shops, restaurants, as well as its other landmark attractions conveniently accessible. Transport services are scheduled to begin operations within El Gouna by the 1 March 2014.

African Review of Business and Technology - March 2014

The new services are also projected to boost tourism by facilitating transport in and around El Gouna, as well as provide numerous job opportunities. From this, the local economy is expected to benefit in terms of increased spending power from both tourists and in-town residents alike. And as the services expand, there will be increased jobs creation and importation of more vehicles to cover demand. “We are expecting that Budget’s indemand and innovative service will help bring back some of the lustre to the Egyptian tourism industry and give a real boost to the local economy,” concluded Nour El-Din, general manager of Orascom Development. Present in Egypt since 1980, Budget Rent a Car Egypt has continued to successfully deliver Budget International’s high service and quality levels. Committed to the highest standards of quality and safety, Budget Rent a Car Egypt is a leader in the car rental, limousine and cab service industries. ■

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Upgrading on a grand scale Comparison of thermoformers for food packaging applications offers insights into achieving sustainable improvements in packaging machine output


he output of thermoformers plays a crucial role when fresh food is being packed. The rate of production must keep pace with constantly escalating requirements if food producers are to remain competitive. Outlined below is a comparison of two concepts, each of which promises to deliver greater efficiency during the packaging operation. The option ultimately selected by the company in question depends on several factors, including the production environment. There are two fundamental approaches to increasing output or performance: First, processing more packs per cycle, and second, running more cycles per minute. “There is no silver bullet,” says Stefan Krakow, head of thermoformer product management at GEA Food Solutions GmbH, who recently gave a presentation on the subject of efficiency enhancement with thermoforming machines in Biedenkopf. “Each option has specific pros and cons. First of all, a decision has to be taken on the most suitable packaging concept for the relevant production environment,” he adds.

Factors influencing the packaging process In food packaging, a lot of attention must be paid to external factors. These include packaging material behaviour, which has a direct impact on the heating, forming and sealing processes. In this connection, close collaboration with the film producer is crucial. Among the other vital aspects are the product properties and the upstream and downstream operations in the packaging process, namely slicing, conveying, loading, converging, inspection, labelling, aggregating and group packaging, each of which must be able to handle the increased output. Another external factor is the supply of compressed air, low pressure for a vacuum, electricity and water. “Especially as regards the vacuum,” explains Krakow, “the prevailing conditions often oppose the goal of increased performance.” When designing a thermoforming packaging machine, one of the goals is to achieve universality. When seeking to increase output by raising cycle speed, however, this target is difficult to meet. Efficiency and speed in packaging cannot be accomplished without defining specific design parameters. In this connection,

Stefan Krakow

kinematics, motion times, die volumes and weights, pressures and pressure differences are key considerations both in valve design and during the packaging operation. Focus on process times This wide variety of influences raises the question as to where exactly to leverage performance increases with thermoforming machines, especially since the underlying machine concept has already been refined over many years. Can the machine control or individual components be designed more intelligently in order to raise the packaging speed substantially? Some design scope has been identified for significantly accelerating the overall process by modifying the sealing operation and process times - in particular for product evacuation. Concept 1: More packs per cycle The PowerPakNT’s high performance is underpinned by very generous index lengths and relatively wide webs, which combine to provide the surface area required for processing a large number of packs per machine cycle. In the case of a typical

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presentation pack for a sliced and shingled product with a 4 x 6 format - 24 packs per cycle, for example, an index length of approximately 1.2 metres and a film width of approximately 700mm can be used. Operating at a rate of approximately 10 cycles/min, the machine thus achieves an output of approximately 240 packs/min. With squarer packs and therefore higher utilisation of the available area, performance can edge above 300 packs/min. The aggregate die length can reach up to around 2.5 metres. The forming frame weighs around 280kg, and the deep-draw lid approximately 450kg. With this model, the total weight of the format parts is around 1.8 metric tonnes. Concept 2: More cycles per minute The PowerPakSpeed, in turn, is a high-speed thermoformer designed specifically for two applications, namely shingled products in typical self-service portions, and hot dogs packaged in one or two layers in flat MAP trays or vacuum packs. The key benefits afforded by this machine type include its conventional dimensions, and

die components with standard dimensions and weights, so that ease of operation is ensured. The 560mm film width allows the use of standard films, which are available from a large number of suppliers. When processing typical selfservice packs, the PowerPakSpeed achieves an output of 200 to 240 packs/minute. Depending on the operating environment, the PowerPakSpeed can be as much as 50 per cent faster than standard machines. From evacuation to sealing Measured against a typical standard machine,

The decision in favour of a packaging concept offering either more packs per cycle or more cycles per minute depends on the product, production environment and logistics”

the PowerPakSpeed reduces the evacuation time from around 1.3 sec to around 0.5 sec. The design engineers also focused on servo technology for all the travel and die cutting movements, so that both models offer fast cycle times and perfectly attuned, energyefficient movements. Smooth interaction The declared development goal was to reduce the overall cycle time of the PowerPakSpeed by approximately two seconds in order to accomplish the desired change in the number of cycles per minute. The cycle rate of a standard machine stands at around 10 to 13 cycles/min. The PowerPakSpeed, in contrast, delivers a performance of approximately 22 to 24 cycles/min. Krakow concludes, “If the product and logistics are well matched, a packaging concept that envisages more cycles per minute is ultimately more productive in many cases than one that processes more packs per cycle.” ■

A new asset management product for Uganda esigned by JJ Black Consultancy (Uganda) Limited, an energy sector logistics specialist, to help firms to monitor the location and value of assets - and deter theft, a new product called Umarkit gives owners and managers easy access to databases highlighting the location and value of indoor and outdoor equipment. Umarkit can typically be used for office, factory, refinery, quarry or mine property - with a ‘lite’ version available for small businesses and schools. The product is designed to tag computers, printers and telephones, chairs, desks and even fork-lift trucks. Designed and developed in Uganda, Umarkit primarily allows businesses to record the location and value of their assets. Any item larger than 50mm x 25mm can be photographed and tagged with a coded label then each item is invisibly marked as proof of ownership. Each item is also scanned and recorded on a database stored remotely using Cloud-based technology. This means managers can view the database anywhere in the world via a computer with an Internet connection. In contrast, traditional asset-marking techniques, such as engraving, are slow, do not indicate the value of



Umarkit allows businesses to record the location and value of their assets

items and do not connect to Cloud-based databases. In summary, businesses benefit from Umarkit because they can track the location of equipment, including items that are moved or are mobile, and check each piece’s value. Businesses can also see if any equipment has been removed for repair and view the cost involved. JJ Black Consultancy (Uganda) Limited was formed in October 2012 with a Ugandan partner. The company has highlighted the importance of Ugandan staff development and the firm’s social

African Review of Business and Technology - March 2014

responsibilities. The company is based in Entebbe and has three local employees. It provides a range of logistical services to oil and mining companies in Uganda and elsewhere in East and West Africa. Mr Jim Black, MD, of JJ Black Consultancy (Uganda) Limited, is keen to tap the talents of Ugandan workforce and expand Umarkit to other African countries using Uganda as a focal point. “We are very proud of our team in Uganda who have delivered a quality product,” he said. “The parent company in the UK has had enquiries regarding Umarkit, which demonstrates that Uganda can provide quality products for a global market.” Mr Black’s UK company, JJ Black Consultancy Limited, provides a variety of logistical services to companies in Africa, the USA and the Caribbean. The firm's customers include those within the aviation, maritime, ground transport, oil and mining operations industries. JJ Black’s products and services help businesses to manage property and employees, boosting security and productivity. ■

Visit or call Uganda +256 (0) 77 44 66 004

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Propak East Africa


Get ready for the biggest event Propak East Africa promises to play a vital role in the development of Kenyan market, infrastructure and economy frica’s largest printing, packing and plastics exhibition Propak has been running for more than 20 years and with the long standing reputation that the brand has built, it is now delivering new shows across the sub-Saharan African region. Propak East Africa and Kenya are the next frontiers the event managers are looking to delve into. With regards to this, Propak East Africa will be held 1-3 April 2014 at KICC, Nairobi. The East African region is a highly attractive place for inward investment and inside growth. With 20 countries in the region and more than 400mn people, the future of this region is set to be huge. In Kenya, the population has doubled in the last 25 years and their dependency ratio (children and elderly against the working population) is set to become one of the lowest in the world, which suggests a great deal of optimism towards the local economy. Within the manufacturing industry, the sector is becoming one of Kenya’s main pillars of the economy with consistent growth and currently standing at 14 per cent of the country’s GDP. With more than 2,500 companies within the industry and employing up to 500,000 people, this sector is currently attracting a great deal of interest. An event such as Propak is, therefore, of vital importance for the industry in a place like Kenya. With varying levels of dated equipment and systems, the entire sector has the opportunity to become far more efficient. Individuals at the show will source new products and systems that will allow their companies to become more efficient and more profitable. This will enable them to increase trade, employ more individuals and grow alongside the Kenyan economy. The profile of all the exhibitors at Propak East Africa is deliberately broad, which will allow visitors a varied and engaging day. With all our exhibitors being specific to the industry, visitors will have the chance to see many different products within their field. With companies from more than 15 countries from the USA, the UK, South Africa, Egypt, UAE and Taiwan, the exhibition will truly live to its international reputation. The international exhibitors that are attending the show will also bring the most up-to-date and cutting edge technology and equipment. For some of these products, the exhibition will be the launch of these technologies in this region, thereby addingeven more value to the show for both visitors and exhibitors alike.


With varying levels of dated equipment and systems, the manufacturing sector has the opportunity to become far more efficient

The Propak East Africa Conference, running alongside the exhibition, will add a different dimension to the exhibition. The visitors to the exhibition are an integral aspect to ensure that the show is a success and runs continuously in the future. The senior individuals from the industry will be invited to ensure that the exhibitors are talking directly with the decision makers. These will include companies from the food and drink industry, pharmaceutical and cosmetic sector, in addition to general packaging and printing industries. With visitors seeking the most modern and effective systems, Propak East Africa will host all of these on display over the week, it is anticipated that the show will be the most attended of its type. Co-organised by Montgomery Exhibitions of London and ECO Ltd of Kenya, Propak East Africa has all the ingredients to succeed. Montgomery have been running exhibitions for 115 years and currently run 35 exhibitions and events throughout Africa. With this market being like no other in Europe or the rest of the world, they really know what it takes to succeed and the methods that are needed to run professional and worthwhile exhibitions. ECO Ltd are the original exhibition organisers in Kenya and ran the original packaging and printing show for the region. Their local exhibition knowledge is invaluable and this, combined with Montgomery’s international experience and the Propak brand, will make Propak East Africa the only event to attend within the region.

Africa: Growth market for mobile racking Of the 210 Storax systems installed in Southern Africa, seven are outside South Africa in countries like Botswana, Namibia and Mauritius. As the need for chilled and freezer stores grows in Africa, installing Storax mobiles makes sense as the storage capacity of any expensive freezer room is maximised and each pallet or unit load can be immediately accessed.

Energy wise, it takes less electricity to move a 360 tonnes Storax mobile base than it does to boil a kettle. Built to exacting standards, Storax mobiles are simple to operate as well as being reliable and long lasting. Storax mobiles consist of special rails which are installed in a cold room floor. The Storax bases are electrically powered and run on these rails supporting the racking

superstructure. The control system has several options from simple push button control to automatic movement via a warehouse management system. The bases are combined in banks each with one moving aisle. This aisle can be moved to any position in the bank within approximately 1 minute 20 seconds wherever a particular pallet is required.

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Genset basics the small end Ultra-compact in dimensions and low in cost too, but no good to anyone unless properly maintained


eatures on maintenance usually focus on high-power diesel generators, but it is just as important a topic for owners of small gasoline (petrol) fuelled machines, in the fewerthan-one to four kilowatt size category. Typically, these are used by market traders, small building contractors and those who want guaranteed hours for their domestic TVs. The problem with very small generators, usually supplied in a compact protective frame and often finished in garish paint, is that very portability. Essential ancillaries, including the instruction book and maintenance schedule, tend to get lost, especially when ownership changes hands or there is a flood in the precinct. Without maintenance (which takes much less than an hour and is recommended twice a year - more if in daily use or if kept in wet or dusty conditions), they are certain to fail within a short time. Always check the dated maintenance checklist if buying a used genset, however much of a bargain it seems. First, have a good look at the machine. Check for corrosion all over, especially where electrical connections can be seen; ensure any bare wires are not dirty and the covered ones not frayed either, with protective rubbers where they exit the enclosure. All fixing devices - screws, nuts and bolts, clips and clamps, should be more than finger-tight and secure. Then inspect the battery - if there is one - or the pull-cord/recoil arrangement for starting. The electrolyte level should be topped up with distilled (not tap-drawn) water, and there should be some indication of age and therefore ability to maintain a charge. If in doubt, have the


(sustainable, not instantly available) voltage checked by a technician. Just as with a diesel set, the condition of the lubricating oil and its filters and the air cleaning device are all critical; experienced users say that with small gasoline sets that are cooled by forced air it is particularly important to ensure these items are checked and changed frequently according to the usage pattern. Larger liquid-cooled gensets are more lenient. Using the right grade of quality oil, usually synthetic with a small set, is always essential.

Always check the dated maintenance checklist if buying a used genset, however much of a bargain it seems� Whether two- or four-stroke in operation, small non-diesel generators nearly always benefit from the fitting of a brand new spark plug of the correct grade and dimensions. This should always be kept clean at the ceramic insulator end, with a securely clipped HT lead connection that cannot work loose, one of the most frequent causes of failure. Always remove and refit, hand tight only, with a purposemade plug spanner. Fitting a new plug is normally a more effective use of time than cleaning, but a removed plug should always be inspected for evidence of what is going on within the engine. Run for a time before inspecting - allowing a few minutes for the plug to cool, of course.

African Review of Business and Technology - March 2014

At a longer interval the more hard-toreach fittings, such as the bolts that secure the cylinder head, should be checked for tightness, with a proper torque wrench if possible. Even less frequently, the sealing gasket might need attention - indicated by excessive noise from the exhaust. Most small air-cooled sets are in such frequent use that the fuel is never allowed to deteriorate, but if idle for six months or so, both diesel and gasoline sets may require complete draining and replacement, especially if water has been allowed to get in. For this reason, many homeowners who keep a small genset for standby use in their residence rely on an LPG (bottled gas) fuelled set in which the system is easy to flush and replace. Bleeding a diesel set is an operation best left to the experts. The same applies if the wrong type of fuel has been added to the tank of a gasoline machine. The calibration of items like the fuel pump and the automatic voltage regulator is another workshop operation, but these should not be needed every year. Any machine that is kept for standby use should be started up every three months and run for 10 minutes or so, stopped and then restarted again while hot. Always store in a clean and dry environment; if not possible, a purpose-made enclosure that does not interfere with the running of the machine should be used. Operators like market traders who rely on these handy small machines know to keep adequate supplies of consumables in store. They know the usefulness of a heavy-duty and fully waterproof extension cord too, and the rule that water and electrics do not mix. And of course to always use their machine in a wellventilated area. â–

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Social enterprise for energy How Indian entrepreneurs are collaborating with their African peers on energy solutions


n an important development for next generation business models for energy provision, an Indian enterprise is collaborating with African entrepreneurs on energy solutions. SELCO, a 20-year social enterprise based in Bangalore, India, has recently concluded a weeklong collaboration with 25 West African entrepreneurs to showcase energy solutions to address energy poverty. According to Arun Patre of SELCO Incubation Centre, the initiative is meant to reinforce IndiaAfrica collaboration from a social enterprise point of view. Sarah Alexander, also representing SELCO, revealed to African Review that, since the enterprise was started in 1995 in Karnataka, it has transformed nearly a million lives through innovative financial, technology and business models. SELCO recently concluded a week-long collaboration with 25 West African entrepreneurs

It has been reported that the International Renewable Energy Agency (IRENA) and the ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREE) - both international agencies that support countries in their transition to a sustainable energy future - chose SELCO's home turf, Karnataka, to showcase a viable business solution to upcoming African entrepreneurs from West Africa. According to SELCO, 25 entrepreneurs and four bankers from 11 West African countries - namely Benin, Burkina Faso, Cape Verde, Ghana, Ivory Coast, Mali, Senegal, Sierra Leone, Niger, Nigeria and Togo - attended an immersion programme hosted by the enterprise for 10 days, to share some business strategies. SELCO confirmed that through this visit, there was knowledgesharing based on experience of developments with supply chains and the custom application of technologies in order to make solar power affordable and utilitarian. There were also focuses on operational management, relationships with financial institutions and the rural marketing strategies that have shaped the success of the Indian enterprise. SELCO's visionary founder Dr Harish Hande was awarded Asia's prestigious Ramon Magsaysay award for 2011 - also sometimes referred to as Asia's Nobel Prize - for his pragmatic efforts to put solar power technology in the hands of the poor. According to SELCO's founder, India's relationship with Africa is not just sealed by similar philosophies in non-violence through leaders like Mahatma Gandhi and Nelson Mandela, but similar struggles in social well-being. Both continents are reported to share common struggles against energy poverty. India has 400mn people with no access to electricity and Africa's comparable number stands at 600mn, according to SELCO. â–


African Review of Business and Technology - March 2014

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energy out of the box

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Reviewing the power sector A

mid ongoing challenges in South African power delivery, key players in the sector say the time has come for a review of infrastructure management and revenue models. At a roundtable session held in Sandton in November, stakeholders debated the challenges and opportunities in the power generation and distribution sectors ahead of POWER-GEN Africa and DistribuTECH Africa 2014, which are taking place in Cape Town in March. Willie de Beer, chairman of the DistribuTECH Africa Advisory Board, said, “The days of the classical kilowatt-hour business are over. Reselling power for a set margin is no longer enough - the sector needs to look to new revenue streams, and leverage technology to encourage amongst others customer engagement and energy efficiency in ways that ease the pressures on the national grid.” De Beer said the industry was challenged by an ageing infrastructure and an ageing workforce, with serious gaps in asset management and performance management. South Africa’s Integrated Energy Plan presented an ideal opportunity to revisit existing strategies, operating regimes and models and to develop a model that supports growth and sustainability, he said.

On the question of renewable and alternative energy sources, Prince Moyo, general manager of power delivery engineering at Eskom, said that more than a thousand applications on renewable energy projects had been under consideration as part of a programme to replace coal-based generation, “but it’s a balancing act in terms of price.” Moyo said the POWER-GEN Africa and DistribuTECH Africa events would present an opportunity for knowledge sharing and growth. Nigel Blackaby, director of event organisers PennWell Events, noted that in POWER-GEN events around the world, utilities had highlighted similar challenges and opportunities - notably, a surge in demand and growing interest in renewable energy. “The discussions and ideas that emerged from the roundtable event will be developed in more depth at the conference in March, which will also address issues facing the power industry across Africa,” said Blackaby. POWER-GEN Africa and DistribuTECH Africa will be co-located at the Cape Town International Convention Centre from 17-19 March 2014. ■ For more information about attending, visit



African Review of Business and Technology - March 2014

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Find out how to get involved: Call Kim on +27 11 516 4076 or email: AFRICA 2014

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Lifting solutions for African stations How Konecranes uses its portfolio to bring worldwide experience to South Africa's power industry


onecranes South Africa was commissioned to erect the main turbine hall cranes for the three new Eskom power generation plants in South Africa. Medupi and Kusile are the two latest coalfired power stations from Eskom, and Ingula is its most recent hydroelectric power plant. Altogether, four 120/50t cranes and two 265t overhead cranes were installed at these power stations. Cranes and other lifting equipment are an important aspect at power generation plants, especially during the erection phase and in the maintenance process. To attend the unique demands of the power industry, cranes and lifting equipment must be able to operate in demanding environments with precision, safety, and absolute reliability. Konecranes provides lifting solutions for all types of power plants — from a traditional coal power plant to a massive hydro power plant or a remote wind farm. Konecranes designs and manufactures a broad range of suitable equipment to cover the specific needs of the various types of power generation facilities. Konecranes lifting solutions provide reliable service, promote reaching higher uptime and lower life time costs, as well as increase safety.

Wide product range tailored to customers’ needs Konecranes customises the cranes to deliver the utility and features required for the productive operation of a power generation facility. The range comprises, among others: ● Turbine hall cranes that facilitate the installation and accurate adjustment of turbines, generators, and auxiliaries. ● Coal handling cranes with clamshell buckets. ● Compact, lightweight chain hoists that provide fast hoisting speeds inside wind turbine nacelles. ● Intake gantry cranes for lifting the gates of hydroelectric dams. ● SMARTON maintenance cranes. ● CXT cranes for workshops, as well as jib cranes and monorails for smaller lifting tasks. Apart from the wide range of lifting equipment, Konecranes also offers patented Smart Solutions. These technologies include Sway Control, Micro Speed, and Inching that simplify crane operation, elevating safety and productivity. Konecranes also greatly lowers the risk of equipment breakdowns through preventive maintenance programs that are customised to operational requirements. Konecranes’ patented TRUCONNECT remote monitoring and reporting service, for example, continually keeps track of the usage and condition of the lifting equipment. Konecranes created high-value applications to cover the needs of the different kinds of power facilities.


African Review of Business and Technology - March 2014

Hydro power cranes with high life-cycle value Konecranes provides cranes for hydro power plants, such as turbine hall cranes, intake, and draft tube gantry cranes. The product range varies with hydro power stations cranes for up to 1,000 tonnes and with maintenance and workshop cranes for 1 to 80 tonnes. Thermal power cranes, designed to suit requirements Konecranes provides cranes for all kinds of thermal power plants, such as turbine hall cranes and boiler room cranes and hoists. The product range varies with thermal power stations cranes for up to 1,000 tonnes and with maintenance and workshop cranes for 1 to 80 tonnes. Wind turbine electric chain hoist that optimising space Konecranes supplies a light-weight and compact electric hoist for wind turbine applications. The tXN Electric Chain Hoist is mounted within the nacelle of the turbine. Using the hoist for service applications allows maintenance staff to safely raise and lower turbine appliances for repair or replacement. “In addition, Konecranes offers maintenance services as well as spare parts, and also modernisations of all makes of cranes and hoists,” said John MacDonald, service, sales & marketing director at Konecranes Southern Africa. “Worldwide service experience by Konecranes results in huge buying power, leading to competitive prices and the ability to supply parts expediently straight from our Parts Distribution Centre in Johannesburg.” ■

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Electricity for all The African Development Bank (AfDB) is working alongside the US government’s Power Africa initiative to increase access to power across the continent


he AfDB has pledged its support €20mn; issuing a PRG programme of to the Power Africa initiative, US$184mn along with a concessional which aims to support loan of US$3mn to support Nigeria’s economic growth and development power sector privatisation by doubling access to power in subprogramme; and making US$58mn Saharan Africa, with investments of available for Tanzania’s Governance more than US$600mn. and Economic Competitiveness AfDB said its contributions to Programme. Power Africa run broad and deep, including contributions to the Deepening engagement initiative’s focus countries in the form To further its impact, the AfDB is this of investments, support for policy year planning to deepen its reforms, advisory services and engagement in Power Africa. guarantees. In the near future, the Bank said it Between January and December will finalise an Energy Development 2013, the Bank approved several and Access Project that aims to landmark operations associated with improve the Ghanaian population’s Power Africa countries for a total of access to reliable and quality approximately US$670mn. electricity services. It will do so by Examples include AfDB’s supporting the reinforcement of the conversion of the Sustainable Energy Electricity Company of Ghana; Fund for Africa (SEFA) - a bilateral extending the distribution system in trust fund established with funding peri-urban or rural areas; and from the Denmark government - into deploying off-grid solar photovoltaic a multi-donor trust fund with a wider systems. remit. As part of the conversion, the Later in 2014, the AfDB said it United States Agency for The Power Africa initiative aims to support economic growth and development by expects to work on a variety of International Development (USAID) doubling access to power in sub-Saharan Africa projects ranging from energy access will become the second anchor in Liberia to geothermal donor and make a contribution under the Power Africa initiative. The development in Kenya. conversion also opens the door for other donors interested in In addition, under the aegis of the Climate Investment Funds, the promoting private sector-led investments in small- and medium-sized Bank has led work on the Scaling-up Renewable Energy Program sustainable energy projects. Additionally, the Bank’s Board endorsed a (SREP) Investment Plan for Tanzania and prepared jointly with the new financing window to support related enabling environment World Bank the Scaling-up Renewable Energy Program (SREP) activities, it added. Investment Plan for Liberia. This will lead to projects in both countries, Meanwhile, the Africa Renewable Energy Fund (AREF) private equity AfDb confirmed. fund - which mainly provides aid to Kenya, Tanzania and Ghana Finally, at a Sustainable Energy for All (SE4ALL) Stakeholders’ benefitted from US$64.5mn from the AfDB in November. The funding Meeting in Tunis convened by the SE4ALL Africa Hub, some of the will be invested in small- to medium-sized renewable energy projects Power Africa countries (Ghana, Kenya, Tanzania and Liberia) were in sub-Saharan Africa (excluding South Africa). AfDB and SEFA are coprioritised for the development of SE4ALL Action Agendas and sponsors and anchor investors of the fund, providing US$25mn in Investment Prospectuses in 2014. equity each, while the Global Environment Facility (GEF) is set to invest While the financing gap in the energy sector appears daunting in US$4.5mn in equity from an AfDB-managed public-private the focus countries, the Power Africa initiative offers a promising way partnership platform programme. forward to contribute to their transformation and have substantial Other ways in which the AfDB contributed to the Power Africa impact on the population. initiative in 2013 included providing €145mn (US$198.6mn) for the The AfDB - working together with its development partners - said it Côte d’Ivoire-Liberia-Sierra Leone-Guinea Electricity Interconnection; is committed to promoting the energy access agenda, including issuing a loan of €115mn (US$157.6mn) for the 300MW Turkana Wind through private sector development, using all instruments at its Power Project in Kenya, along with a partial risk guarantee (PRG) of disposal. ■


African Review of Business and Technology - March 2014

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Pumps & Valves


Pipeline supply for potable water Fluid conveyance products and solutions firm Incledon supplies pipes and valves to a potable water upgrade project in South Africa

Bedding in-process at the dolomite-layer

A pipe laid in trench at a road crossing


luid conveyance products and solutions expert Incledon has successfully completed its role in supplying R4.3mn (US$396,000) worth of pipes and valves to a potable water upgrade project in Vosloorus, on the East Rand of Gauteng. As part of a municipal upgrade project to replace an existing asbestos cement (AC) pipeline that was installed in the 1980s, Incledon was contacted in mid-2012 to supply more than 1.4 km of 560 mm diameter locally manufactured high-density polyethylene (HDPE) pipe. Incledon sales representative for civils, Robinson Patji highlights the fact that HDPE was selected as the material of choice to replace the existing AC pipeline, due to its high impact strength, low friction properties and environmentally friendly characteristics. "AC pipelines pose some potential health concerns for both workers and end-users. These pipes are also very brittle and tend to crack under stress from trench loads. The

brittleness also makes this type of pipe difficult to cut and splice to undertake repair work," he explained. Light and strong Patji revealed that HDPE is non-toxic and entirely safe for supplying drinking water, while the lightness of the material makes it an easier and quicker type of pipeline to install. "The lightweight properties of HDPE makes it easier for workers to carry and lay. More pipes can be loaded onto a truck, thereby reducing carbon emissions too. HDPE pipes also boasts more impact strength than AC pipes, which substantially reduces the risk of cracking and subsequent leaks." According to Patji,the SANS 4427 approved pipes, which have a pressure rating of 12,5 bar, were delivered to the project in 12-m-lengths by Incledon. As part of its comprehensive service offering, Incledon also sourced a professional welding contractor on behalf of the

A road crossing encased with hydro fill to protect the pipe under the road

municipality, in addition to supplying the project with a range of AVK valves in sizes including; 200 mm, 300 mm and 500 mm. “Incledon has developed an excellent relationship with the local municipal council, and assisted with storing the exact product specifications on our database to ensure prompt service delivery. Despite some minor interruptions that were swiftly overcome, the project was successfully completed on time and within budget." As municipalities across South Africa continue to invest more capital into pipeline upgrades, Patji is confident of the future outlook for Incledon in the civils market. "Incledon has successfully supplied large volumes of piping products to numerous municipalities nationwide, with a number of tenders currently pending. I believe that the potential for future growth in the municipal market is strong, as a result of Incledon's excellent reputation for providing topquality products that are backed-up by our commitment to high levels of after-sales support,” Patji concluded. ■

African Review of Business and Technology - March 2014


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Building a continent fit for the 21st century Efficient infrastructure systems in terms of energy, transport, information and communications technologies (ICTs) and water boost economic growth and competitiveness Installed power generation capacity in Africa must reach at least 700 gigawatts (GW) in 2040


ot only that, these systems promote regional integration, but also remain a key ingredient for realising the Millennium Development Goals (MDGs), where several sub-Saharan countries are lagging behind. Efficient infrastructure systems - in terms of energy, transport, information and communications technologies (ICT) and water - not only boost economic growth and

competitiveness and promote regional integration, but also remain a key ingredient for realising the Millennium Development Goals (MDGs), where several sub-Saharan countries are lagging behind. The scales of Africa’s infrastructure deficiencies are plainly evident, which in turn, hinder much-needed intra-regional trade and inward foreign direct investment (FDI). The African heads of state in 2012

PIDA Projects up-to-2020 by Sector & Region Sector Transport Energy TWR* ICT

Number of Projects 24 15 9 3

Cost US$bn 25.4 40.3 1.7 0.5



Total *Trans-boundary water resources.



African Review of Business and Technology - March 2014

Sub-Regions Continental North Africa West Africa Central Africa Southern Africa East Africa

Number of Projects 7 2 16 9 6 11 51

Cost US$bn 3.0 1.3 6.2 21.5 12.6 23.3 67.9

endorsed an ambitious Programme for Infrastructure Development in Africa (PIDA), which seeks to unlock the economic potential of [all] five sub-regions: North Africa, West Africa; Central Africa; East Africa; and Southern Africa through vastly improved access to integrated regional and continental infrastructure networks and services. President Jacob Zuma of South Africa, said: “The overall goal of PIDA is to promote socioeconomic development and poverty reduction in Africa.” The PIDA provides a strategic framework for stakeholders and partners, including bilaterals, multilaterals and private foreign investors to build solid infrastructure that leads to more integrate and prosperous continent. It recognises infrastructure bottlenecks are regional problems, hence require a continental solution. The PIDA covers four key sectors vital for sustainable development: energy (power-generation and

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IT usage will reach 6,000 gigabits per second by 2018.

renewable sources of energy); transport (air, sea, rail, road, rivers and lakes); transboundary water resources (primarily irrigation, hydropower, and lake and river transport; and ICT. The programme envisages African countries growing on average by six per cent a year between 2010 and 2040, driven by favourable demographics – surging middleclass population, rising number of workforce, higher levels of education and technology absorption. Growth projection implies that,

over the next three decades, Africa’s gross domestic product (GDP) will expand six-fold, while average per capita income will exceed US$10,000 for all countries. By 2040 more than 100 cities of more than a million residents is expected to appear on the map (compared to 51 in 2010), of which seven ‘super-cities’ topping 10mn people. Rapid urbanisation on the continent demands that major African cities become globally competitive in the Global Cities space. To cope smoothly with strong future demographics

trends requires huge public and private investments into electrification, mass transport systems, including paved roads, high-and-subways and railroads, affordable social housing, water treatment plants and social services in terms of hospitals, schools, universities, training institutes and recreation, as well as the expansion of wireless and Internet connectivity. Roust demand Electricity: The African Development Bank (AfDB) estimates that power usage will expand from 590 terewatt hours (TWh) in 2010, to more than 3,100 TWh by 2040. To keep pace, installed power generation capacity must reach at least 700 gigawatts (GW) in 2040 – a hike of nearly six-fold from 125 GW in 2010. Africa’s chronic power deficit takes a heavy toll on economic growth and productivity. Many countries rely on inefficient, expensive, small-scale, oil-based power generation. Frequent power outages force firms to use generators that cost US$0.40 per kilowatt-hour. Connectivity: Transport volumes across the sub-regions will swell by six-to-eight times over the same period, with exceptional robust increases of 14 times for some 15 landlocked

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African Review of Business and Technology - March 2014

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Infrastructure countries. Port throughput will increase nearly eight-fold from 265mn tonnes in 2009, to more than 2bn tonnes by 2040. Presently, only few African ports are large enough to handle calls from major shipping lines, thus a need for focusing on regional hubs with efficient trans-shipment along the coast. A lot of extractive industries are located in landlocked or post-conflict countries, which requires building road/rail networks to improve export capacity for coal, iron ore and other hard minerals. Improving road accessibility in rural areas is critical to boost agricultural productivity across Africa. Logistics services remain in their infancy, which leads to lengthy delays and higher costs in the movement of international freight, compared to peer developing regions. The aviation sector needs new runways and terminals as well as upgrades to air traffic controls and surveillance facilities to cope with projected growth in traffic. Water supply: Africa has similar water resources as other continents but captures much less for its development. According to the World Bank, merely five per cent of agricultural land is irrigated, less than onetenth of vast hydropower potential has been tapped, and about three-fifths of Africans have access to clean water supply. Moreover, growing water needs are putting some river basins, notably the Nile, Niger, Orange and Volta under severe ecological pressure. The African continent has very low water storage capacity to withstand hydrological shocks: only 200 cu m 7per capita compared with more than 1,000 in most other regions. Without investment into hydraulic infrastructure (to store water), Africa’s economies will continue to be vulnerable to droughts and floods. Communications: ICT demand is projected by the AfDB to soar by a factor of 20 before 2020, as Africa catches up with worldwide broadband. Concurrently, IT usage, around 300 gigabits per second in 2009, will reach 6,000 gigabits per second by 2018. Broadband service in many African countries is presently in its infancy, reflecting limited availability of fiber optic cables and regulatory barriers. Investing opportunities The energy programme focuses on mega hydropower projects and linking regional power pools by developing a vibrant Africawide power market. Investment opportunities include: hydro-electricity plants notably Grand Inga in Southern Africa; transmission lines and interconnections and oil-gas pipelines mainly in West and East Africa.


ICT demand is projected by AfDB to soar by a factor of 20 before 2020, as Africa catches up with worldwide broadband The transport initiatives aim to link and improve connectivity among major production and consumption centres and cities by building hub ports and railway routes and provide an outlet for landlocked countries to participate in regional and global trade. Investment opportunities include: the Trans-Africa Highway (TAH) network; the transport corridors in sub-regions; and the Africa hub port and railway projects. The trans-boundary water programme intends to build multi-purpose dams and improve the capacity of Africa’s lake and river basin organisations to better manage hydraulic infrastructure. Investment opportunities in water resources include: large dams such as Fomi, Gourbassy and Palambo; water transfer projects such as Lesotho Highlands Water Scheme; management systems/ infrastructure for river and lake basins. ICT agenda seeks to foster a conducive environment for completing the land fiberoptic infrastructure and installing Internet exchange points in target countries. Investment opportunities in IT include national and regional integrated broadband services across Africa; and Internet connectivity and exchange points (IXPs) across the continent. Funding by sectors & regions Africa’s new modern infrastructure demands substantial capital and advanced technology, as well as creating capacities in construction and maintenance. Total cost of implementing PIDA up to the year 2040 is estimated at US$360bn. The first tranche of priority projects comprises 51 schemes funded by domestic and foreign resources costing US$67.9bn. In terms of sectoral distribution, the largest requirements are for energy (US$40.3bn) and transport (US$25.4bn) – each sub-sector needing 15 and 24 projects, respectively, by 2020. While looking at geographical distribution, East Africa has the highest funding needs at US$23.3bn, followed by Central and Southern Africa each at US$21.5bn and US$12.6bn, respectively. ■ Moin Siddiqi, economist

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Japan reinforces Uganda's road sector T

he Japanese government has confirmed that road transport is one of the priority areas in its Country Assistance Policy for Uganda and cites the financing of the New Nile Bridge project, a loan agreement for 9. 198bn Yen (about US$92mn) as one of the many projects being undertaken and expected to boost the Ugandan economy. The Japanese ambassador to Uganda, Kazuo Minagawa, said, "Since more than92 per cent of the freight and passengers in Uganda are along the roads, an efficient nationwide roads network is essential for economic growth. Only 15 per cent of the national and four per cent of rural roads is paved, yet the vehicle registration is increasing by 11 per cent per year. "


Uganda’s private sector cannot survive if the government does not build infrastructure. Good infrastructure lowers the cost of doing business and enables companies to make profits and expand their business and this widens the tax base.� - Dr Hoshi Hirofumu, JICA Uganda office chief reperesentative

Mr Minagawa noted that Kampala's traffic congestion is getting worse by the year, hence the need for fast roads infrastructure development and Japan's cooperation with Uganda. "Grants have financed roads mapping, roads database compilation and Kampala traffic

African Review of Business and Technology - March 2014

junctions' improvement projects while concessional loans at 0. 01 per cent interest rate with a grace period and the repayment period of ten and 40 years respectively are financing the New Nile Bridge and Atiak-Nimule road constructions," he noted during a review of their road sector programmes in the country.

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Roads Advantages and advanced skills The ambassador outlined Japan's support to the roads sector saying it has consisted of District and Urban Roads (DUR), mapping and roads data collection (US$3mn), conducting the feasibility study for Kampala's Kitgum House flyover and the Clock Tower junctions (US$2mn) and Atiak-Nimule road construction (US$34mn). Japan has also assisted with the improvement and set-up of traffic lights at nine traffic junctions and also upgraded six roads junctions in Kampala City center. He noted, however, "Japanese companies have a comparative advantages in the construction of complex infrastructure, requiring highly advanced technical skills, like the long cable-stated bridge and roads improvement in the congested city centre. The cost of hiring Japanese companies would be too high for constructing low technology requiring infrastructure. Nonetheless, I expect more Japanese companies to participate in actual constructions in Uganda, as we are now involved in infrastructure projects requiring highly advanced technology. " According to the Japanese International Cooperation Agency (JICA), the implementation arm of the Japanese

Official Development Assistance, the Japan government is committed to supporting the development of international corridors in Africa and the New Nile Bridge is one of the most important and strategic parts of an international corridor, the Northern Corridor Route. Project support for traffic management Dr Hoshi Hirofumu, JICA Uganda office chief reperesentative, has recognised the need to support the project following a World Bank report for an alternative bridge across the Nile river adding that JICA has supported the development of transportation infrastructure in Uganda since 1998 beginning with a phased traffic improvement project for Kampala city. "We're proud that all the existing functioning traffic lights in the city are from Japan, with Japanese support. The government of Japan has supported the rehabilitation of bridges, district and community roads under the Northern Uganda Reconstruction Program. We are focusing on minimizing traffic jams in Kampala and improve the traffic flow in the city," he said. President Yoweri Museveni, while performing the ground breaking ceremony


for the New Nile Bridge in Jinja recently, described the bridge as one that will not only serve Uganda but the entire Great Lakes region. He stressed, furthermore, the role played by good infrastructure in the socio-economic development of the country through reduction of the costs incurred in business. "Uganda, like all modern economies, is run by the private sector. But the private sector cannot survive if the government does not build infrastructure. Good infrastructure lowers the cost of doing business and enables companies to make profits and expand their business and this widens the tax base," he explained. Ugandan minister of Works and Transport Abraham Byandala said the Japanese are engaged on the planning of a smooth Kampala City transport flow and discussions are underway about a rapid bus transportation system expected to go a long way in easing the traffic flow within the city. He said, "Working with the Japanese on a big and complex project like the New Jinja Nile Bridge is a very good learning opportunity for our people. The Japanese are as a matter of fact very good. " â– Geoffrey Muleme



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Used Equipment

Critical challenges for machinery migration Analysis of the continent’s market for used equipment, including options for sourcing and technical challenges


sed machinery and construction equipment is a global commodity - bought, sold and often shipped internationally. Industry experts estimate the annual worldwide opportunity for used construction, road and mining machinery to be around US$50bn, and approximately 20 per cent of this opportunity is generated by equipment physically migrating from mature markets such as North America, Europe and Japan to other regions of the world. As in the car industry, the demand for imported used equipment in Africa is mainly driven by the region shortage of good quality used equipment. Popular machines include excavators from 20 to

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30 tonnes, wheel loaders and bulldozers, which are generally used in infrastructure building and the preparation of mining sites. Some brands, such as Cat, are particularly in demand because of their reputation for quality and durability.

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African Review of Business and Technology - March 2014

Sources and support Multiple options are available to source a piece of used machinery such as authorised dealers, auction houses, independent brokers, as well as end-users. Discerning buyers look at more than the piece of equipment they are buying. They also value the support available locally: parts availability, local maintenance and repair capabilities as well as warranty, as those elements can significantly affect the total cost of ownership. This is even more critical when it comes to importing equipment with the new generation of

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Used Equipment engines designed to meet the latest emissions standards in North America, Europe and Japan. “Tier 4 used equipment migration is a complex issue,” said Ramin Younessi, vice president, Industrial Power Systems Division at Caterpillar Inc. “Because Caterpillar serves customers in all markets, we develop products to meet the needs of customers in all types of regulatory environments. For example, all non-road equipment operated in the US, Canada, Europe and Japan must operate on ultra-low sulphur diesel fuel. When equipment developed for certain markets, like our Tier 4 equipment, moves to different markets, it adds challenges for Caterpillar, our dealers and our customers. Challenges arise due to diverse emissions regulations, the need for dealer readiness training and the need to help customers understand how to operate and maintain these next generation products. Most importantly, customers contemplating the purchase or modification of used Cat Tier 4 products need to understand and comply with their local regulatory requirements.” The consequences of complexity The company is in the process of preparing its dealers to support the migration of used equipment that meets the latest regulatory standards to lesser regulated regions such as Africa. The authorised dealer should be able to help each customer understand the consequences of using the fuel available locally and make recommendations when importing such equipment. With the added complexity of new engines coming from the higher regulated regions of the world, dealing with a reputable source of used equipment may become even more critical. ■


Enabling Tier 4 used equipment migration to lesser regulated countries Caterpillar has developed a strategy for meeting the needs of customers in lesser regulated countries selling and purchasing used Tier 4 Interim products for operation in lesser regulated countries, where prevailing fuel quality and fuel sulfur content vary widely. Based on extensive testing, analysis and field validation, Caterpillar has determined that Cat Tier 4 Interim engine systems between 156kW and 895 kW (7-32L engines) will not require any modification to operate in lesser regulated countries. For Cat Tier 4 Interim engines less than 156kW, Caterpillar offers authorised modification processes that remove after treatment from machine and commercial engine configurations to enable operation in lesser regulated countries. Modification processes, which includes decertification, are available to customers in lesser regulated countries exclusively through local Cat dealerships. Ramin Younessi, vice president, Caterpillar Industrial Power Systems Division, said, “With the migration strategy, we’re looking forward, ahead of the Tier 4 Interim products that are already finding their way overseas to lesser regulated countries. Tier 4 Final products won’t be far behind the Interim products, which is why the strategy we’ve developed focuses on a solution for today’s customers—and for future customers.”

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Global industry support enhances experience C

ONEXPO-CON/AGG and IFPE have represented the global industry gathering place in 2014, with the

help of worldwide industry support. More than 95 allied associations and groups were official show supporting organisations;

hundreds of industry meetings and conventions were held at the shows; and key countries for industry business hosted international exhibit pavilions. Held in March in Las Vegas, in the USA, CONEXPO-CON/AGG and IFPE offered a focus on construction, construction materials and fluid power/power transmission/motion control. Safety and education/training were spotlighted with focused industry events in the outdoor exhibit lots, in addition to the specialised product and country pavilions on the show floor. Attendees were able to plan their visit with the interactive online show planner, available as a free mobile app, for added convenience and to stay connected during the shows, which were sponsored by Caterpillar. "Industry connections broaden our base to enhance the show experience for all more interaction between qualified buyers and sellers, more industry education, and more networking in a global environment," said CONEXPO-CON/AGG show director Megan Tanel. "More than ever, companies are looking at their bottom line and evaluating their investment of time and money. Industry collaborations are one way we offer real value in today’s marketplace for all participants," added IFPE show director Melissa Magestro. Industry support and eventreputation The 95-plus official 2014 show supporting organisations came from the USA, Canada and 16 other countries worldwide. They promoted the shows' value and brought qualified buyer groups to the events, and many helped develop direction and content of the shows' education programmes to ensure they met industry needs. Besides the USA and Canada, these groups represented Africa, Australia, Brazil, Chile, China, Colombia, Germany, India, Korea, Mexico, Philippines, Spain, Taiwan, Turkey, United Kingdom and Venezuela. â–


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Crushing & Screening


Crushing matters W

ithout reliable automated rock and metal-ore crushers from world-scale suppliers such as Liming Heavy Industry, Metso and Telsmith most of Africa’s major mining and quarrying industries could not function. All their production costs are based on the yield of ‘pay’ material, whether this be the metal content of ore or the amount of usable material that can be incorporated in a civil engineering or building project. Key sources and cost concerns Increasingly, these tight bottom-line strictures are applied within the booming recycling industry, which relies on the use of high-capacity crushers for the quality of the construction material it increasingly supplies. Whether based on demolished concrete, steel industry by-products or even glass ‘cullet’ this is now one of the

world’s key sources of building materials. And without these locally-sourced and therefore low-cost recycled materials many of Africa’s road and other infrastructure projects could simply not go ahead. Whether fully mobile, half-way so or fixed all of today’s crushers rely on longestablished common properties and principles to perform reliably and at the same time keep those critical production costs down. These are the durability of the crushing mechanism itself – some of Africa’s machines are now more than 50 years old – which particularly includes the toughness of the ‘chamber’ in which the operation takes place; this depends on the ease with which the contact components (usually made of some type of toughened steel) can be changed. Whether based on an electric motor or

diesel the quality of the drive mechanism itself, consisting of a main shaft assembly, foolproof gearing composed of forged alloys, hardened pinions and long-life bushings, is critical to the reliability of the machine. And if built in from the outset torque safety is a looked-for bonus in topend models. Equally important is the efficiency of the feed-material screening mechanism which keeps out unwanted ‘tramp’ materials such as the rebar remnants that are widely found in demolition materials these days. With ferrous materials this is relatively easy; with other surface-damaging metal leftovers not so. Machines and materials handling Mostly, handling materials that can these days be any degree of wetness (except cohesively sticky), and capable of dealing

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Crushing & Screening

robustly with a wide range of degrees of hardness too, conventional nutcrackertype jaw crushers as supplied by, for example, KPI and Terex rely on the brute compressive force generated between toughened fixed and mobile arms. The ‘swing’ jaw usually derives its inertia from a heavy flywheel driving an eccentricmotion shaft. Both jaws themselves are normally made of high-spec hardened manganese steel, and designed to be replaced at intervals determined by the nature of the material (including its moisture content) they work on. The rock or other target material is usually batch fed by gravity through the crushing chamber several times to achieve the required uniform reduction ratio. Various detailed design adaptations found widely in Africa’s quarries and oreprocessing plants, often custom designed for specific sites and materials, depend on the precise way the moving jaws are attached to the crushing machine itself.

Old in principle but updated in both materials and technology the modern crusher is what keeps the cement, minerals mining and construction industries in profit” Gyratory crushers as supplied in the FLSmidth Fuller-Traylor range, including the latest NT, are also widely used as primary (first-stage) crushers in mines and quarries here, and are similar in design to the jaw types, relying on a hardened steel concave surface which is fixed and acted on by a conical head controlled by eccentric motion. Material can be fed through repeatedly until it is small enough to drop through the gap between the two. The usual alternative to these very common types of crushing equipment is the familiar cone crusher, as supplied by specialised equipment manufacturer Weir Minerals with their well-known compact Enduron SP machine. This particular model which fits into a complete family of minerals processing equipment, some of it made in South Africa, is highly versatile as

it can be fitted with a full range of coarsefine crushing chambers. Also built by other manufacturers all over the world, including full-range supplier Yifan Machinery, these ubiquitous machines can usually be divided into one of several detailed types according to the manufacturer’s typical customer and product specialisation. Similar in action to gyrators all these eccentrically-driven shafted machines effectively ‘squeeze’ the rock or ore between a wear-resistant gyrating spindle and a concave hopper or bowl. Because of the efficient flow-through design the same material is crushed repeatedly as it falls through the machine, the cycle repeating until the particles are small enough to pass through the narrow ring-shaped annular space at the lower end, which can feed directly into a delivery truck. These universally popular cone-based rock and ore crushers are renowned for their rugged reliability, high productivity and ease of adjustment; as a result they are usually low in cost to maintain and operate too. Specific sub-types of cone crusher commonly found throughout SSA include the compound model which is widely used in the construction industry because of the uniform shape/size of its output product, the Symons crusher often found in secondary/tertiary (i.e. second and third pass) crushing systems for producing uniform fine materials such as clean sharp sand and aggregates, and the hydraulically-powered single- and multiple-cylinder crushers widely used in both construction and metallurgy. Another type is known as the spring cone crusher. Also available here for well over a century have been several types of hammer-type impact crushers which continue to rely on repeated physical blows to crack the material which then passes through the changeable mesh of a robust feeder cage once it has reached the required degree of reduction. Essentially based on the steam- or water-driven rotating-cam “stamps” used by the tin miners of old they are usually divided into machines that employ either vertical or horizontal shafts – the latter especially used in reduction of fines for production of building sand - to transmit the necessary drive, usually from a threephase electric motor these days. Such easy-to-maintain pulverising-type crushers are widely used by on-site recyclers of building materials, especially concrete, for instant re-use purposes such as demolition site clearance and supply of road base materials. ■

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Crushing & Screening


Contracts for South African engineers Three contract awards on three different continents underlines the confidence that Terra Nova Technologies (TNT) has in South Africa’s Weba Chute Systems from M&J Engineering. TNT’s comprehensive understanding of the benefits that Weba Chute Systems provide in the mining sector led to the most recent contract award for eight chutes at the Morenci opencast copper mine in Southeast Arizona in the United States. “Preceding this award, M&J Engineering Weba Chute Systems is currently supplying seven chutes to the FMG (Fortesque Metals Group) Solomon Mine in Western Australia and recently supplied chutes to Kisladag mine in Turkey,” said Alwin Nienaber, technical director of M&J Engineering. “We have developed a strategic relationship with US-based TNT which is founded on mutual trust. By carefully analysing the specific needs of each application, we are able to customise solutions that are completely targeted to increase productivity, decrease downtime and maintenance, and provide a better flow of product,” he continued. The Morenci copper ore mine is owned by Freeport-McMoran and the mining and milling capacity expansion project at the mine will allow it to process additional sulphide ore identified through exploratory drilling. The project is targeting incremental annual copper production of approximately 102 mn kg in 2014 (a 40 per cent increase from 2012) through increases in mining rates to 815 mtd (metric tons per day) and milling rates to 115,000 mtd (metric tonnes per day). Freeport-McMoran has also awarded M&J Engineering the contract to design two chutes for the Safford opencast copper mine in

Arizona. These chutes are handling agglomerated copper ore on its way to the heap leach stockpile. The Safford mine is one of the most environmentally advanced copper mines ever built and consists of two copper deposits that have oxide mineralisation overlaying primary copper sulphide mineralisation. Safford is a mine-for-leach operation and produces copper cathodes. The operation consists of two open pits feeding a crushing facility with a capacity of 103,000 mtd (metric tons per day). The crushed ore is delivered to a single leach pad by a series of overland and portable conveyors.

The landscape of Freeport-McMoran's Morenci Mine, located in South Arizona, USA

One Source Many Solutions FLSmidth is your One Source for crushing, grinding, classifying, thickening, clarifying, slurry handling, flotation, mine shaft systems, pyroprocessing, material handling, automation, screens, centrifuges and complementary products, engineering, metallurgical testing and modernisation services. FLSmidth offers you a complete line of equipment and services with proven reliability and enhancing performance from the leading brand names of ABON, Buffalo, Dorr-Oliver, EIMCO, ESSA, FFE, FullerTraylor, KOCH, Knelson, Krebs, Ludowici, Meshcape, Möller, MVT, Pneumapress, RAHCO, Raptor, Roymec, Shriver, Summit Valley, Technequip and WEMCO. For more information contact us The bottom section at the tail end of one of two Weba Chute Systems installed at Morenci Mine, South Arizona, USA.

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Pre-assembled transfer chutes to reduce costs FMG and TNT collaborate to outsource assembly of transfer chutes and towers by third party companies


n an effort to reduce the high installation of the chutes into the transfer towers which costs incurred in Australia, FMG had been fabricated by them,” Baller (Fortesque Metals Group) requested explained. Terra Nova Technologies (TNT) to outsource “Once the assembly was completed the the assembly of its transfer chutes and transfer tower, together with the chute and towers to overseas third party companies. all ancillary equipment, was shipped fully M&J Engineering was awarded the contract assembled to Western Australia. It was to supply Weba Chute Systems to FMG’s offloaded at the docks and transferred to Solomon Mine in Western Australia. road trains for transportation to the mine,” Solomon Mine is part of FMG’s major he added. expansion in the mineral rich Pilbara. The Four of the transfer chutes were Solomon Hub is located 120 km west of the specifically designed to cater for worst Chichester Hub and comprises the Firetail overrun conditions, with a required storage mine and the Kings mine. More than three capacity of up to 30 m3 of ore. “We billion tonnes of resources have been achieved this by utilising a sophisticated identified at Solomon, providing FMG with and unique design, considered to be a first a long-term, low cost production strategy. in transfer chute technology. The chute was Early earthworks commenced at fitted with an air cannon system to ensure Solomon in late 2011, with significant that bulk flow was achieved once the greenfields construction work undertaken system was restarted. By incorporating since to develop the 60 mtpa operation. block chute detectors in the chutes, we can The US$3.5bn Solomon site has two OPFs, confirm that the chutes have completely three crushing hubs, a 125MW power emptied before the incoming belts are station, its own airstrip and three camps to restarted,” Baller pointed out. house 30,000 people. The remaining three chutes are normal This was the second of three contracts belt to belt transfer points that are capable awarded by TNT to M&J Engineering. The of handling tonnages varying from 4,500 company recently supplied chutes to up to 7,400 tph on belt widths of 1,400 and Kisladag mine in Turkey and is in the 1,800 mm, travelling at speeds of 4.6 m/s. process of supplying eight chutes to the Four of the chutes are fully operational and Morenci opencast copper mine in the last three chutes are currently being Installation of the Weba Chute Systems and the erection of the Southeast Arizona in the Unites States. commissioned. structures occurred simultaneously at Solomon. “We have formed a mutually beneficial Weba Chute Systems provide clients with relationship with TNT that allows us to customise transfer chutes to a significant reduction in material degradation, greatly reduced suit specific client requirements. TNT’s comprehensive levels of dust and noise, reduced production losses owing to fewer understanding of the engineering and application benefits that are blockages, significantly reduced spillage and vastly improved safety derived from the Weba Chute Systems gives them the confidence to levels. propose their use in large-scale projects,” said Mark Baller, managing “Apart from the technical merits of the Weba Chute Systems, the director of M&J Engineering. critical factor in this project was the ability to provide a product that The seven Weba Chute Systems transfer chutes were designed, could be remotely assembled then shipped in its final configuration engineered and manufactured in South Africa by M&J Engineering to a destination on another continent. The cost savings achieved by to precise specifications. “We then trial assembled the chutes and FMG by adopting this philosophy are substantial and outline M&J shipped them to the steel fabricator Best Tech & Engineering Limited Engineering’s flexible approach to design and engineering,” Baller in Thailand. The steel fabricator was responsible for pre-installation concluded. ■


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Critical support for explosives manufacture AEL Mining Services Limited secures additional ammonia supply with the help of Johnson Controls Frick RWF II 1080 screw compressors


acing seasonal constraints in the supply of ammonia, a key ingredient in the manufacturing of explosives, AEL Mining Services (AEL) turned to Johnson Controls recently to help it resolve logistical challenges and secure a sufficient supply of ammonia to keep its local plants functioning at capacity during peak season when ammonia is in high demand. AEL supplies explosives to mines. Robert Burnie, senior project engineer at AEL, explained, “To avoid down time in our manufacturing plants, AEL has to

accommodate three block train deliveries of ammonia per week with Transnet Freight Rail (TFR). To make this service model work, we need to offload all the rail cars in a 24-hour window period, moving the ammonia from the high pressure train bullets to AEL’s low pressure 16,000 tonnes capacity bulk storage tank. “To do this, AEL is implementing an approximately R60mn (US$5.37mn) upgrade of its offloading facilities in Modderfontein, Johannesburg. Two Johnson Controls’ Frick RWF II 1080

Safety and performance requirements are prime factors in project success

ers & X4 mix




LOAD, MIX, DELIVER AND DISCHARGE UP TO 130 M3 OF QUALITY CONCRETE PER DAY 3 0 0 2 0 N o v e n t a d i P i a v e , Ve n e z i a - I t a l y - Te l . + 3 9 . 0 4 2 1 . 6 5 1 9 1 - i n f o @ c a r m i x . c o m

African Review of Business and Technology - March 2014


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compressor sets, the first of these high capacity compressors in South Africa, are pivotal to the success of the solution.” Capacity for growth According to Burnie, AEL’s annual sales now exceed R6bn. The company’s portfolio has been diversified to decrease AEL’s dependence on the South African narrow reef market through substantial growth of AEL’s share of the South African surface open-cast mining market in the past five years. “This is an explosives intensive market and the additional ammonia offloading capacity was required to leave sufficient spare capacity for further growth in this market in the future,” Burnie said. AEL selected two large ammonia Frick RWF II 1080 compressor sets with 1,300kW motors to help them meet their requirements. Says Russell Hattingh, operations manager for Johnson Controls, “This is the highest capacity model in the Frick compressor range and the biggest of its kind in South Africa. Combined, these compressors are able to move 198kg/min of ammonia.” The high pressure ammonia gas generated by the compressors is used to displace the liquid ammonia from the railway storage bullets and the high pressure liquid ammonia being pushed from the rail bullets is then piped through to an expansion valve near the low pressure storage vessel, which is kept at atmospheric pressure, and a temperature of about -33°C. Hattingh said, “New piping with a greater diameter will be required to increase the capacity of the line to the storage tank.” Project performance and experience Hattingh identified three critical success factors for this project. He explained, “Firstly, this is a schedule driven project and long lead items like the compressor packages had to be selected and ordered during the engineering phase so as not to impact the schedule. Another challenge is integrating and fitting new equipment and piping into the middle of an existing plant. This was made possible by using 3D CAD and being able to present a 3D model of the changes to the client before finalizing the detail design. Finally, safety is key. Ammonia is a hazardous chemical. Therefore, the design and specification of this type of plant requires knowledge and experience of the relevant standards, codes and statutory requirements to ensure a safe and reliable facility.” Hattingh added, “An important consideration in the selection of the Frick compressors was also the skill and experience the Johnson Controls team brings to the project.” Johnson controls has global experience in dealing with ammonia offloading and storage, and in meeting the safety and performance requirements around this application. Burnie confirmed their strong, highly knowledgeable technical team in South Africa would provide the necessary configuration, implementation, commissioning and maintenance support to AEL. The upgrade of AEL’s offloading facilities is underway, with the new weighbridge completed in mid-August 2014 and the refitting of the rail siding for jumbo rail cars completed by end of March 2014. Burnie added that progress is also being made with the construction of the compressor housing. Full re-commissioning of the offloading facilities is expected in the second quarter of 2014. Burnie said, “For us, its safety first - so after due consideration of risk in terms of safety, specifically around maintaining the integrity of the tank, we have decided to take the storage tank off line in the second quarter of 2014 to facilitate the installation of the new pipe work.” ■


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Indian support for WAMPEX 2014 For the first time, India is Partner Nation at WAMPEX, the West African Mining & Power Exhibition


conomic powerhouse India has been named Partner Nation for the 20th West African Mining & Power Exhibition (WAMPEX). WAMPEX takes place from 28-30 May at the Accra International Conference Centre in Accra, Ghana. The event is where more than 100 suppliers to West Africa’s rapidly growing mining and mineral resources sector meet to showcase mining equipment, services and consumables - as well as power generating, transmission and distribution technology at WAMPEX. John Thomson of event organiser Exhibition Management Services said, “WAMPEX is a highly versatile networking platform enabling all stakeholders and decision makers in the mining and power sectors across the ECOWAS countries to explore business and growth opportunities.”

Indian Business Confederation on-board “India is extremely proud to be the partner country for WAMPEX 2014,” said Victor Monteiro, marketing manager of the Confederation of Indian Industry (CII), a non-government, industry-led and managed business association. CII has more than 7,100 private and public sector members. “Its advisory and consultative role aims to create a sustainable environment for the development of India, partner industries, Government and civil society,” explained Monteiro. A diversified and booming power sector “The Indian metals and mining industry is expected to more than double - from US$141.9bn in 2011 to US$305.5bn in 2015,” Monteiro said. ■

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Technology Building a better online connect


ucid and Urjanet recently announced that Urjanet’s utilityCONNECT service will automate the collection and delivery of electricity, water, and natural gas billing, history, and rate-plan data for Lucid’s BuildingOS energy management platform. The combination of BuildingOS, which integrates with over 150 different types of building systems and electric sub-metres, and utilityCONNECT, which normalises and federates data streams from over 800 utilities, provides universal energy data access and a one-stop source for obtaining actionable information into energy use for schools, large corporations, government agencies, energy management software vendors and energy services firms.

Both companies have taken a vendoragnostic approach to data-driven energy efficiency for customers Sanjoy Malik, Urjanet CEO

Both companies are teaming up to solve one of the largest barriers to deploying energy efficiency: the cost of acquiring and managing building performance data. Lucid CEO Vladi Shunturov said, “Our partnership with Urjanet extends the reach of BuildingOS further by giving customers visibility into their utility bills and eliminating the need for bill data entry.” Urjanet CEO Sanjoy Malik said, “I’m excited about the strong partnership between Lucid and Urjanet.” “Both companies have taken a vendoragnostic approach to data-driven energy efficiency that helps our customers make better energy management decisions,” Malik added.


Security management app for residential and commercial space

The entire system supports up to 20,000 IP devices, allowing Xightor Pro to be deployed across expansive property developments

Schneider Electric, global specialist in energy management, has announced the launch of its Xightor Pro Entrance Control System which adds a touch of class to traditional entrance control systems. It features touchscreen controls and is designed to blend in seamlessly into the interior decor of a house, while the door station and call management software ensure round-the-clock security for occupants. The Xightor Pro comes with a flat flush mount design and a standard 86mmx86mm wallbox that makes installation more convenient, as no protrusion racks are needed for mounting the touchscreen onto the wall. In addition, Xightor Pro uses an IP-based connection using Category 5e cables, for faster and more stable video and audio signals — reducing wiring costs and time. IP auto-matching also enables faster programming and setup, whilst plug-and-play connectivity makes the system installable by almost anyone using Phoenix connectors. These features help reduce the building costs for residential and commercial buildings, and speed up the time to completion. Xightor Pro is also able to integrate with other systems, such as Schneider Electric’s C-BUS and ULTI EZinstall3, enabling one-touch scene control through the Xightor Pro touchscreen video door phone. Xightor Pro can also be connected to the occupancy sensor detection system to offer enhanced security for the home or office. The entire system supports up to 20,000 IP devices, allowing Xightor Pro to be deployed

African Review of Business and Technology - February 2014

across residential and commercial property developments, and also making it easy for any future upgrades and upscaling — further improving the property value. Any upgrades can be done via IP connection or the built-in SD card slot. Xightor Pro’s touchscreen design is inspired by the award-winning ZENcelo switch. Featuring a full-flat surface, Xightor Pro blends seamlessly into the interior design of any modern home. The touchscreen frame is customisable to match any wall colour, pattern or design, as well as the design of any switches or wall accessories. At the same time, the property management software allows users to monitor visitors via video, and keep records of missed calls along with a photo of the visitor. For added convenience, the Xightor Pro has a control functionality which summons the elevator to one’s floor in advance, reducing waiting time. Users can also personalise their door phone ringtone and screen saver to reflect personal taste and style. “Schneider Electric’s Xightor Pro Entrance Control System improves the value and attractiveness of property developments with several features like its management software, IP connectivity and the ability to integrate with other building systems,” said Sandeep Singh, vice-president, Lifespace Business, Schneider Electric India.

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Trucks Caterpillar and Trimble to offer jobsite solutions As part of their ongoing commitment to transforming the way contractors view job site productivity and the way they manage their businesses, Caterpillar, supplier of construction equipment, and Trimble, a technology solutions provider, announced new agreements that will bring complete, technology-enabled construction jobsite solutions to the market. The new agreements enhance both companies’ efforts to better serve global customers from project design through completion, with critical technologies and services focused on fleet management and site productivity. “Caterpillar has worked with Trimble since 1996 to optimise site productivity through a revolutionary suite of grade control solutions, differentiated by industry-leading machine integration straight out of our manufacturing plants, mixed fleets’ aftermarket systems and through our world-class distribution network,” said Hans Haefeli, Caterpillar’s vice-president for its Advanced Components and Systems Division. Since 2008, Caterpillar and Trimble have expanded their collaboration to bring both fleet management and site productivity solutions to the customers’ office and jobsite through

For Caterpillar, the strategic partnership with Trimble provides a site level and unified fleet focus to the Cat Connect portfolio

the VisionLink suite of applications. With the new agreements, the companies are further investing in their combined commitment to develop these products, expand the range of productivity applications and services, and bring a comprehensive unified fleet solution

to the contractor. For Caterpillar, the strategic partnership with Trimble provides a site level, unified fleet focus to the Cat Connect portfolio of products and services. Cat Connect leverages connectivity to more than 250,000 Cat machines globally. These machines can be monitored by customers to improve their fuel consumption, maintenance, productivity and overall fleet availability. The latest agreements will strengthen Caterpillar’s already world-class distribution capability and enhance collaboration with Trimble's SITECH technology dealers, the only global distribution network dedicated to providing a comprehensive construction technology portfolio to the heavy and civil contractor. “The agreements demonstrate both companies’ commitment to providing a brand agnostic information solution to contractors with mixed equipment fleets,” said Bryn Fosburgh, vice-president responsible for Trimble’s construction technology divisions. ”This unified fleet solution is enabled by VisionLink, which integrates a wide range of site and machine information elements to give customers a holistic view of their site.”

Volvo CE and Terex Corporation finalise hauler deal Volvo Construction Equipment (Volvo CE) is set to acquire the offhighway hauler business of the Terex Corporation for a purchase consideration of around US$160mn on a cash and debt free basis. The deal, which is subject to regulatory approval, includes the main production facility in Motherwell, Scotland, and two product ranges that offer both rigid and articulated haulers. Pat Olney, Volvo CE’s president, said, “This is a strategic acquisition that offers Volvo CE considerable scope for growth. The addition of a well-

The addition of a well-respected range of rigid haulers extends the earthmoving options for customers involved in light mining applications Pat Olney, president of Volvo CE


African Review of Business and Technology - February 2014

respected range of rigid haulers extends the earthmoving options for customers involved in light mining applications.” The acquisition includes five models of rigid haulers, with proven designs and payloads ranging from 32 to 91 tonnes. The introduction of rigid haulers will extend Volvo CE’s position in light mining; an area that is complementary to general construction, oil and gas, aggregates, quarrying and road building. The deal also sees a further three models of articulated haulers added to the Volvo portfolio, with payloads ranging from 25 to 38 tonnes. These machines support Volvo CE’s already established position in the articulated hauler segment, and offer a profitable and extensive opportunities for considerable growth in emerging economies. The transaction is expected to be finalised during Q2 2014.

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Standard Industrie International ADVERTORIAL

Standard name, many applications The French firm has developed four world-class products for commercial markets tandard Industrie International designs equipment that facilitate the storage, flow, conveying and cleaning of powder and bulk products. The French company meets the needs of the bulk industry with four ranges of products and services:


AIRCHOC: Declogging of silos and hoppers with its flagship product AIRCHOC air cannon whose patent has been filed for more than 30 years. The principle of the air cannon AIRCHOC consists of using a compressed air capacity whose importance varies between one to 400 litres depending on the type of AIRCHOC. This capacity is released instantly through a large outlet that is directly connected to the storage unit. The obtained effect corresponds to a deflagration due to the brutal release of compressed air. The company then developed the MACSYS, an air cannon with several heads. Committed to innovation, these air cannons are now available in a wireless version. Thus, with a control panel and a remote control, 128

AIRCHOC can be controlled remotely, guaranteeing a total safety. Liftube: An efficient solution to optimise the sealing and safety on conveyors. It is available in different versions: standard, large width and high temperature, and with a wide range of options and accessories, this innovative system ensures a reduction of dust emissions, loss of material, maintenance time and ensure the safety of the operators. In Nigeria, the largest cement producer in the world was facing a problem of loss of material and undergoing too important maintenance time on its new plant. Thus, the two main conveyors feeding the mill in clinker, gypsum, limestone and pozzolana have been equipped with 26 metres of Liftube. Vaccum Units: Standard Industrie International is also known for its large range of industrial vacuum units like mobile units or trucks, from 5 to 300HP, electric or diesel. No matter the need, the manufacturer meets the requirements of

AIRCHOC air cannon has been patented for more than 30 years

every sector of activity. In Nigeria, two cement producers, one of them who already uses the Liftube, contacted Standard Industrie International for vaccums. Both had the same requirements: first of all to clean the packing area and the cement silos, and then to tackle the whole plant. Given the large volume to be removed, a vacuum truck proved to be the ideal solution. Therefore, a truck CAM6000MR with a blow back option has been put into service at the world first cement producer to enable the recycling of the product before reinjecting it onto the process. The local producer meanwhile, chose a truck CAM6000M. In this case, it has been delivered without the blowback option as the customer did not need to recycle the material in silos. The arguments used in these cases were the technical aspect oriented on the large tank capacity, the performance of the unit, as well as its ease of use and of maintenance. GIRONET: The company also provides cleaning services and declogging of silos and hoppers with the GIRONET. This mechanised cleaning, efficient on any type of clogging, product or storage unit, is done without human intervention and can be used without stopping the production. Thus, the client can quickly recover its full storage capacity while ensuring optimal safety of its operators. Standard Industrie International is renowned in five continents and has emerged as a world leader in its field. More than 20 years, the company specialized in bulk handling solutions has been working on the African market with different type of industries such as cement plants, mines, quarries, etc. â–

African Review of Business and Technology - February 2014


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Doka’s formwork engineers focus on energy Demand for energy around the world is rising, a fact that requires energy to be supplied in an environmentally friendly, efficient and safe way. Construction lots for building different types of power stations ranging from water to gas- and coal-fired power all the way to wind energy systems are as diverse as the forms of energy generation. Each structure places specific and frequently complex demands on formwork technology. In response, Doka provides custom as well as holistic solutions and underscores its versatility with its in-house Competence Centre Power Plants. Aside from construction sites that often are difficult to access, special standards for concrete and optimal scheduling of various procedural steps are among the challenges facing formwork technology. Rapid construction progress is a primary objective, particularly in the energy sector. The sooner a power station is taken on line, the sooner it can generate energy. Doka formwork experts concentrate their energy for

power station projects of all types and in collaboration with their customers develop adapted solutions. Using modular formwork systems is as much a part of this concept as planning construction processes in all project phases and safety of the team at the construction site. “As a partner to our customers, we provide them with well-founded decision-making support starting with the development phase. The sooner our experts are integrated into the construction project, the better our chances for efficient implementation”, so Andreas Guttenbrunner, head of the Competence Centre

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African Review of Business and Technology - February 2014

Power Plants. “With its comprehensive catalogue of services, Doka provides project support all the way to the point of completion.” In the case of power station projects with a variety of construction lots, an all-encompassing logistics concept contributes significantly to a successful project progression. In the process, Doka develops holistic formwork concepts that include detailed utilisation plans through to 3D planning of complex construction lots and use of synergies between construction lots, thereby saving materials. “If Doka is hired for a particular construction lot, we will develop a custom formwork solution for each individual task”, Andreas Guttenbrunner explains. The Doka service portfolio includes all types of power stations, such as hydroelectric power plants and wind mills, gas-, oil- and coal-fired power stations or professional support in the implementation of power houses, turbine tables, stair towers, inlet and outlet structures, maintenance tunnels, chimneys, coal bunkers or caverns.

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African Review March 2014