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ATR November 2012 Cover_Layout 1 18/10/2012 14:28 Page 1

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

November 2012

African Review of Business and Technology


November 2012

A new ship for Angolan oil & gas


Nigeria’s Volume 47 Number 19






Equipment for Kenyan roadbuilding P58

Innovation for generation at Power-Gen Africa P50

Energy storage for mobile networks P40

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121 Years of Excellence

MarelliMotori 1891-2012

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Editor’s Note


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

November 2012



ey events previewed in this issue are AfricaCom and Power-Gen Africa, both taking place in November in South Africa, covered in the bulletins on pages 22 and 24. In finance and banking, Nigeria is the focus, with coverage of government handling of the economy and FirstBank’s move in mobile finance, aligned to developments with the Cashless Lagos initiative, between pages 27 and 34. In technology, this magazine highlights how Etisalat Nigeria has worked with Oracle Communications Data Model to ensure it remains competitive as a communications provider, how companies can use email to target their markets better, and how CCTV may be supported by wireless communications - all between pages 36 and 42. Page 44 features an appraisal of the Seven Borealis, a pipelay/heavylift vessel owned and operated by Subsea 7, and scheduled to serve Total at the Angola CLOV oil & gas project. From page 46, there is a focus on renewable power generation, and further insights into the key happenings at Power-Gen Africa. Construction issues addressed from page 52 include cement, consultancy, and roadbuilding. Mining operations addressed from page 66 include tantalum extraction in the Democratic Republic of the Congo. Andrew Croft, Managing Editor


A new ship for Angolan oil & gas




economy Construction:



Equipment for Kenyan roadbuilding P62

Innovation for generation at Power-Gen Africa P50

Energy storage for mobile networks P31

Cover picture: technology and project management underline success in all fields, from engineering to power generation to construction and mining (Photo: Esorfranki Geotechnical. Inset: Fred Ndung'u Ng'ang'a)

REGULARS 04 Agenda:

22 Bulletin:

Industry and innovation, around the continent


70 Solutions:

Solutions on show, at Power-Gen Africa and at Africa Com

Technology for transport, by road and by rail

FEATURES 27 Finance and Banking How Dr Ngozi Iweala-Okonjo, Nigeria's Minister of Finance, has underpinned economic growth in the country; FirstBank leads in mobile banking; and issues associated with Cashless Lagos

36 ICT Improved data handling for improved business; email marketing to target audiences better; energy storage in telecoms markets; and wireless solutions for surveillance


44 Oil & Gas A pipelay/heavylift vessel to serve in Angolan waters

46 Power Green power in South Africa; options for renewable power generation; and an advance brief on Power-Gen Africa

52 Construction Buying used equipment; a specialist in tile, block and cladding; construction consulting services; roadbuilding in Kenya; and cement manufacturing in South Africa

62 Mining Investment in tantalum extraction in the Democratic Republic of the Congo; and communications support for mining operations

Audit Bureau of Circulations Business Magazines

Managing Editor: Andrew Croft Editorial and Design team: Bob Adams, Lizzie Carroll, David Clancy, Kasturi Gupta, Ranganath GS, Prashant AP, Meenakshi Nambiar, Genaro Santos, Zsa Tebbit, Nicky Valsamakis, Julian Walker 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:

China: Ying Wang Tel: +86 10 8472 1899 Fax: +86 10 8472 1900 Email:

Russia: Sergei Salov Tel: +7495 540 7564 Fax: +7495 540 7565 Email:

India: Tanmay Mishra Tel: +91 80 65684483 Fax: +91 80 40600791 Email:

South Africa: Annabel Marx Tel: +27 218519017 Fax: +27 46 624 5931 Email:

Nigeria: Bola Olowo Tel: +234 80 34349299 Email: Qatar: Saida Hamad Tel: +974 55745780 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: Donatella Moranelli, Nasima Osman, Devolina Pak, Nick Salt, Jeremy Walters and Sophia White E-mail: Subscriptions: Chairman: Derek Fordham

Printed by: Wyndeham Grange Ltd 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 - November 2012


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Agenda / North New MENA office delivers materials handling solutions Guttridge Ltd, which provides bulk materials handling equipment, is enhancing local support to flourishing economies in the Middle East and North Africa (MENA) region from a new office in Saudi Arabia. From Riyadh, Guttridge experts are delivering turn-key, integrated materials handling solutions for products ranging from grain to cement, animal feed to sand and minerals, as well as providing individual conveying machines. A comprehensive spares service, that extends to all types of conveyors in routine use, is a central part of the offering. “The new office in Saudi Arabia is a key part of that future and underlines the continuing strength of the company. Its opening strengthens our offering to the Middle East and North Africa and will ensure that our customers there enjoy excellent local support,” comments company chairman Peter Guttridge. Guttridge is an established and highly respected manufacturer of conveyors, elevators and all the ancillaries needed for optimal materials handling. Its equipment has a proven track record across a wide range of industrial sectors with in-house expertise ensuring a truly optimal solution for every material, from friable animal feeds to highly abrasive aggregates and cement.

Otrac demonstrates Bobcat wheel saw for trenching work in Egypt Otrac Heavy Equipment, which is based in Heliopolis, Egypt, and is the authorised dealer for Bobcat and Doosan in that country, organised two demonstration events recently to promote the Bobcat WS32 wheel saw attachment. Both events were organised and presented by Emad Saloum, Sales and Marketing Manager for Otrac. The first took place in New Cairo, whilst the other was staged in the El Minya district of Upper Egypt. The WS32 wheel saw attachment was mounted on a new Bobcat A770HF all-wheel steer loader to show why the wheel saw is suited to the trenching work required on forthcoming gas pipeline installation projects. Among the invitees to the events were: Engineer Hisham Al Alany, Operation Sector Manager for Town Gaz; Mr Tarek Adel, General Manager Maintenance Management at Taqa


Arabiya; and his colleague, Engineer Mohamed Ghoneim, Domestic Project Manager at Taqa Arabiya. The WS32 wheel saw attachment is the largest model ever offered by Bobcat. Designed to cut efficiently through asphalt, rock and concrete, the WS32 wheel saw has a fixed trenching width of 250 mm while the depth can range from 450 to 800 mm. Karl Fakhoury, District Attachments Manager Middle East and Africa for DI CE, said, “The WS32 model and the rest of the Bobcat range of wheel saws can cut through a variety of surfaces including asphalt and reinforced concrete, making them ideal for demolition, road repair and creating trenches for utilities such as water, gas, electric or fibre optic cable services.”

African Review of Business and Technology - November 2012

MENA professionals can connect from Dubai


inkedIn, a professional network with more than 175mn members worldwide, today announced the opening of its first office in the Middle East and North Africa, where a new team will support a growing membership and client base. Located in Dubai’s Internet City, the office will serve as regional headquarters to over five million members in the Middle East and North Africa, one million of which are based in the UAE. Farhan Syed, Director, Global Sales Strategy, LinkedIn commented, “We are very excited to be opening an office here in Dubai - a city recognised by the world as a crossroads for global business exchange. Members are already networking in over 2,000 LinkedIn Groups in the region, exchanging strategic business insights and exploring opportunities together. Having a strong local presence will help serve our members better here, ultimately making them more productive and successful.” Speaking at the local launch of LinkedIn, Fadi Salem, Director, Governance and Innovation Program, Dubai School of Government, said, "Our research in the Arab Social Media Report series shows that the MENA region has witnessed exponential growth in social media usage, with usage trends shifting from primarily fulfilling social needs back in 2010 to political and societal usage in 2011. “In 2012 strong growth continues, coupled with maturity and yet another shift in usage trends, where a critical mass of users is now heavily relying on such social media platforms to develop new business and entrepreneurial initiatives. We are witnessing increased opportunities for employment, start-ups and social entrepreneurship leading to economic empowerment of a large group of youth in the region."

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coming through Of course, nothing’s unstoppable. But the Volvo A40F will conquer more terrain than practically any other hauler on the market. A combination of powerful Volvo engine, “dog clutch” differential locks, rotating hitch, automatic traction control and the unique Volvo steering system means that if any vehicle can get through – at speed – it will be the Volvo A40F. See it in unstoppable action. Discover a new way.

Albarajoub Engineering Co.

Babcock Equipment

SUDAN Tel: +249 183 77 84 13 Email:


Auto Maquinaria Lda Auto Sueco (Angola) SARL ANGOLA Tel: +244 9 1250 7464 Email: Auto Sueco Ltd KENYA, UGANDA Tel: +254 713 974 808 Email:

ZAMBIA Tel: +260 2 611 693 Email: COGETP ALGERIA Tel: +213 20 36 0216 Email: Equatorial Business Group Pvt Ltd Co

Leal Equipements Compagnie LTEE MAURITIUS, MADAGASCAR, SEYCHELLES Tel: +230 207 2100 Email:

GHANA Tel: +233 30 283351-58 Email:

NIGERIA Tel: +234 813 778 38 44 Email:

LIBERIA Tel: +231 63 20181 Email:

REP. OF CONGO (BRAZZAVILLE) Tel: +242 06 953 51 52 Email:

Nordic Machinery


TUNISIA Tel: +216 71 409 260 Email:

BURUNDI Tel: +32 2 724 90 74 Email:

Séra SENEGAL, MALI, MAURITANIA Tel: +221 33 859 07 70 Email:

TANZANIA Tel: +255 753 631 442 Email:

ETHIOPIA Tel: +251 911 457758 Email:

A. Yazbeck and Sons Ltd

Ghabbour Egypt

BENIN, TOGO Tel: +229 21 381438 Email:

SIERRA LEONE Tel: + 232 22 232 324 Email:

EGYPT Tel: +2 02 42155314 Email:

BURKINA FASO Tel: +233 30 283351-58 Email:

SMT Multi-Tech Services LTD

CAMEROON Tel: +237 70 74 24 52 Email:

RWANDA Tel: +32 2 724 90 74 Email: Volvo Maroc S.A. MOROCCO Tel: +212 22 67 8500 Email:

DEM. REP. OF CONGO Tel: +243 39 99 93 46 37 EUROPE Tel: +32 2 724 90 74 Email: CÔTE D’IVOIRE Tel: +225 21 75 16 27 Email:

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Agenda / North Policy brief on forest protection Mediterranean forests are a key socio-ecological system, playing a crucial role in a transition towards a green bio-economy in the region. In an area with difficult socio-economic conditions, forests are vital for ensuring the economic viability and resilience of rural communities. However, their future is seriously threatened by climate and land use changes, particularly in countries like Tunisia and Morocco, where these changes are more rapid and intense. National forest programmes are being developed. However, while forest research in North Africa has improved in recent years, it still suffers from fragmentation, and lack of largescale infrastructures or experiments with long-term funding. Poor coordination among countries also hinders the efficient sharing of knowledge. The European Forest Institute (EFI) Policy Brief, ‘AGORA Making the Difference: Towards a Mediterranean Forest Research Area’, looks at the work of AGORA – Advancing Capacities in Mediterranean Forestry Research– a project financed by the European Union. AGORA has provided a focused, innovative and ambitious response to the problem by implementing research partnerships, networking, capacity building and knowledge transfer in two North African countries, Tunisia and Morocco.

Morocco set on 2,000 solar MW North Africa and the Middle East could belong, by 2025, to the world’s leading solar markets due to the growing energy consumption, driven amongst other factors by a dynamic economic growth. This is why the North African region is becoming increasingly interesting. The high solar irradiance represents a further advantage. In order to make full use of the whole potential offered, some measures and improvements still need to be made. Findings presented at the PV Technology Conference – North Africa recently has enabled exploration of these measures and on the actual framework in the field of photovoltaic in Northern Africa.

Saïd Mouline from the Moroccan National Agency of Renewable Energies Development and Energy Efficacy (ADEREE) has confirmed that Morocco´s vision for solar energy is that 42 per cent of its energy supply should be covered by regenerative energies and a capacity of 2,000 Megawatt (MW) of solar energy should be reached by 2020. This goal has been affirmed by Ilias Hamdouch, from the Moroccan Agency for Solar Energy (MASEN), who offers particular insights into the Morocco solar programme. Unlike other countries, Morocco is not basing its business on feed-in tariffs, but on projects and programmes coordinated by MASEN.

Centrify raises security presence Centrify Corporation, a provider of security and compliance solutions that centrally control, secure and audit access to cross-platform systems, mobile devices and applications, has signed a distribution contract with Shifra – a value added distributor serving the Middle East and North Africa (MENA) markets – to promote, sell and service Centrify's security and compliance solutions. Shifra, which is based in the United Arab Emirates, now offers and supports the entire Centrify Suite 2012 product portfolio for centralising authentication, privilege management and auditing of cross-platform systems within Microsoft Active Directory. "With increasing awareness for information security and the increase in cyber security attacks in our region, demand for securing customer environments and centrally managing them to give visibility of who did what on the network has become a priority," said Ahmad Elkhatib Managing Partner of Shifra.


African Review of Business and Technology - November 2012

Ingram Micro adds value to technology services


ngram Micro Inc., a technology distributor and supply-chain services provider, is broadening its geographic reach into the Middle East and North Africa following the signing of a definitive agreement to acquire certain IT businesses of Dubai-based Aptec Holdings Ltd. Aptec is a valueadded distributor in the Middle East, Turkey and North Africa - with products and solutions covering data center, storage, security, networking, and software categories, including technical services. The acquisition is expected to contribute more than US$250mn in revenue to Ingram Micro on an annual basis and is expected to close before the end of the third quarter of 2012, subject to the satisfaction of certain closing conditions. Dr Ali Baghdadi, founder and chief executive officer of Aptec, leads the acquired operations and reports to Shailendra Gupta, senior executive vice president and president, Ingram Micro Asia-Pacific. "The acquisition of Aptec fits well with our strategic objectives to continue to build our higher margin specialty businesses while broadening our geographic reach to capitalise on higher growth markets," said Alain Monié, president and chief executive officer of Ingram Micro Inc. "The Middle East and Africa are robust and growing markets with total IT spending projected to reach US$80bn by 2015. Aptec has been highly effective in growing their business and enhancing profitability in these emerging markets and we believe this combination will further accelerate these ongoing objectives. Aptec has a long-tenured, accomplished leadership team and we look forward to joining forces with them."

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Agenda / East IBM to set up laboratory at University of Eastern Africa


IBM has signed an agreement with the Kenyan government to set up a research laboratory at the Catholic University of Eastern Africa, just outside Nairobi. The laboratory is expected to boost the government’s effort of tapping into the fast-growing ICT industry through international investors. Mwai Kibaki, President of Kenya, said, “The country’s vision is to become one of the top hubs in the continent. IBM’s commitment to undertake the proposed research agenda will contribute immensely to our national priorities as part of Vision 2030.” The government hopes to attract more ICT companies into Kenya as it seeks a target of 500 IT companies and aims to create 50,000 jobs in the sub-sector by 2017. Innovations from the facility will be shared between IBM and the Kenyan government. IBM is expected to provide the technology and access to intellectual property rights. Research areas the lab will focus on include: smart cities; human capacity development; public sector innovations; and engaging in entrepreneurs. On its part, the government will invest US$10mn during the next five years to pay for overheads and salaries for local staff, while IBM is expected to put in more than US$6.5bn into the facility.

IBM and the Kenyan government are comitted to research at the Catholic University of Eastern Africa

Tony Mwai, the country general manager at IBM East Africa, said, “We see significant growth in Africa and specifically Kenya. It makes sense to invest here.” Dr Bitange Ndemo, information ministry permanent secretary of Kenya, added, “We spend a lot of resources on business process outsourcing to create some jobs here, but now we can create jobs locally and we may start looking into the other African countries.”

There is significant potential in Kenyan technology


Wärtsilä services Kenyan power plant

Mwangi Mumero

African Review of Business and Technology - November 2012

ärtsilä, which supplies flexible and efficient power plant solutions and services, is set to work to a ten-year operations & maintenance (O&M) agreement with Gulf Power Ltd (GPL), covering the full operations, maintenance and servicing of a power plant to be built, located in Athi River, southeast of Nairobi, in Kenya. The plant will be powered by Wärtsilä engines running on heavy fuel oil (HFO), and is scheduled to be completed by September 2013. When operational, it will have an electrical output capacity of 80 MW, which will be fed to the grid. It will be the third largest HFO power plant installed in Kenya to be exclusively operated by Wärtsilä. “Our extensive experience and knowhow in O&M, together with the efficiency and reliability of the Wärtsilä equipment, will be of tremendous value in ensuring the success of this important project,” says A.P. Singh, General Manager, Wärtsilä Services, South Europe & Africa. “The power plant is designed with high operating efficiency, low generating costs, and reliability as key criteria, and these are all areas where Wärtsilä excels.” The GPL power plant will support the drive in Kenya to achieve a more diversified energy mix and increased stability in its power generation. The country relies heavily on hydropower, which is frequently prone to supply interruptions because of drought. This new power plant will, therefore, notably increase Kenya’s installed thermal generation capacity. Norman Wanyiri, General Manager, Gulf Power Ltd, said, “This is a milestone achievement in developing the power generation business in Kenya.” Wärtsilä’s total installed thermal generating capacity in Kenya will be some 434 MW by the end of 2013 when the GPL power plant comes on stream. This represents approximately 60 per cent of the country’s total thermal capacity.

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Agenda / East Zimbabwe establishes national health information committee A National Health information Technical Committee (NHISTC) has been established in Zimbabwe to oversee the implementation of the National Health Information strategy for 2009-2014 - and to promote e-health initiatives. One of the tasks of the NHISTC will be to advocate and provide technical assistance towards a vision, strategic approach to e-health and development of information communications technologies (ICT)/e-health policies and systems. As the custodian and coordinator of all health-related data/information functions., the country’s Ministry of health will be responsible for the development of ICT/ehealth policies and systems. E-health relates to application of ICTs to improve health services. The scope for ICT in health services is broad, it ranges from patient treatment for example electronic medical records systems (EMR) and telemedicine, through public health management applications, to web-based and/or cell phone mediated information exchange and research coordination. The Ministry of Health says one of the most important aspects for successful information management is standardisation. The standardisation of health-related information has to tally with the national standards to be set for other ICT related fields broadly defined under e-commerce and e-government. The Ministry has produced an Information and Information Technology (IT&T) Strategic paper as addendum to the National Health Strategy (NHS) for the years 1997–2007. This document may be used as resource for the ehealth group where appropriate. An ICT/e-Health Technical Work Group has been set up to provide technical support and monitor the establishment of ICT/e-health policies and systems. The committee will assist and guide the ministry in advocating for establishment of an ICT/e-health policy framework that provides for the use of ICT in the health service delivery in tandem with the national health strategy and ICT policy. It will


A fresh start for Africa’s maritime industry


Zimbabwe is improving health reporting with information technology (Photo: UNFPA)

also provide technical support and monitor the development and setting up of a digital and e-communication solution for health services delivery in Zimbabwe. Advances through individual and collaborative research efforts The work of the nation’s Ministry of Health is supported by high-level initiatives undertaken in the academic sector. For example, the department of Environmental Science and health at NUST ofers an outstanding researchbased programme, with the 2012 class of honours including Mr Venancio Jachi, Mr Hope Chofamba, Mr Property Munsaka, Ms Musa Moyo, Mr Phakamani Moyo, Mr Prince Nkomo, Mr Farai Nyoni, Ms Amanda Mugwambi, Ms Lucious Chengwe and Mr Meluleki Ngwabi, among others. Professor Y Naik is the associate professor of this department and also head of the NUST Research and Innovation department. Ms Margaret Macherera is the chairperson. At the Department of Medicine in the University of Zimbabwe College of Health Sciences, meanwhile, Dr Chiratidzo Ellen Ndhlovu heads efforts towards the work of the National Drugs and Therapeutics Policy Advisory Committee (NDTPAC), which has been in existence since 1992; acting as an advisory committee answerable to the Secretary of Health and Child Welfare. Wallace Mawire

African Review of Business and Technology - November 2012

aritime experts and registrars of ships converged at the Sarova Whitesands hotel in Mombasa, Kenya, early in October 2012, to launch a master plan for the continents’ re-entry into the global shipping industry and assume its rightful place in the community of maritime nations. This inaugural African Maritime Authorities meeting, which was attended by the chief executive officers from over 30 countries, follows a resolution reached in Dalian, China, in October 2012 at a workshop organised by the Chinese Government for heads of maritime administrations, which enjoined participants to hold joint regular meetings as a forum to advance Africa’s maritime agenda as envisaged in the African Maritime Transport Charter. The meeting may be associated, also, by the first African Union conference of African Ministers responsible for maritime related affairs, which was held back-toback with the 4th African cross-sectional maritime experts’ workshop at the AU headquarters in Addis Ababa, Ethiopia, in order to formulate the 2050 African Integrated Maritime Strategy. Further impetus has been provided by the African Ship-Owners Summit held in Accra, Ghana, in April, 2012, which was attended by delegates from across the continent, and which recommended a unified approach to address the African Maritime Sector in order to achieve a strategic approach to formulating structures for collaboration in the industry at a continental level. The Nairobi conference was organised by the Kenya Maritime Authority, the South Africa Maritime Safety Authority (SAMSA) and the African Ship Owners Association (ASA) and was directly supported by Kenya’s Minister for Transport Mr Amos Kimunya - with facilitation by the International Maritime Organization (IMO).

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Ch China’s hina’s King g of The H Hill ill ne ever rests rests on o his laurels. laurrels. never In Ch China, hina, Shantui’s name is synonymous with bulldozers. bullldozers. In fact, we have hav ve been King of the e Hill for decades, and now our dozers have cleared c cleared the way for ourr growth growth in offering machinery of fering a complete line of construction c y and cement handling handling equipment. While diversification d and internationa internationalization alization are both key strategie strategies, es, our main focus remains on n Shantui V Value. alue. a Shantu erformance and price that no one else can deliver e never stray from Shantui ui offers a unique balance of p performance deliver.. And, we the cul u aT op o China Brand, and one e of China’ tural values that have made us multinational firms. It’s It’s the cultural Top China’ss leading multinational ui W ay. Shantu Shantui Way.


Visit Visit us at:

bauma bau ba aum uma ma China Chi Ch hin ina na 2 2012 20 Booth: Boo Bo oot oth th h: O Outdoor:

G30; Indoor: Hall H E4, #E410

C Check out our full-line of construction, r road and concrete machinery at: www

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Agenda / South bauma Africa offers platform for key construction players Although the first bauma Africa is scheduled to take place some months hence - in 18-21 September, 2013 - at the Gallagher Convention Centre in Johannesburg, South Africa, it is clear that the originally planned 20,000 square metres of exhibition space will have to be extended, as the sheer number of registrations received so far from key players has exceeded expectations. Gary Bell, chief executive at Bell Equipment, sees bauma Africa as a real opportunity for his company. He said, "An international exhibition of this stature in sub-Saharan Africa has been long-awaited, and we at Bell Equipment look forward to supporting an event which will have positive spin-offs for the region, the construction industry and our customers." International players welcoming the decision of Messe München International to enter the African market include, also, Bauer Maschinen GmbH - whose Sales Director for Africa and Middle East, Hermann Schrattenthaler, said, "As a way of further strengthening the up-and-coming market in

bauma Africa will feature leading companies such as Terex

southern Africa, we very much welcome this trade fair based in the region, and we are already looking forward to a successful presentation there." Stefanie Herr, Head of Corporate Marketing at Wacker Neuson, added, "Wacker Neuson has long had its own sales affiliate in South Africa. But we never had the chance of presenting the broad range of products and services to a large number of visitors there. We are looking forward to doing that now and meeting customers from the other countries of the African continent."

Powering precious metal projects GE’s Power Conversion business is supplying Actom Industry Pty (Ltd) with advanced electrical technology for winder equipment for separate mining projects in Zambia and South Africa. Power Conversion’s solution for Actom features its tried-and-tested MV7000 variable speed drive coupled to an induction motor. Mining projects are often located in remote areas with harsh operational environments and call for exceptionally robust and dependable systems with very little routine maintenance requirements. Actom and GE are collaborating on the supply of complete mine winder systems for expansion projects at the Mopani Copper Mine in Zambia and the Royal Bafokeng Platinum, Styldrift No. 1 Shaft 1 Project in South Africa. Actom is the largest manufacturer, repairer and distributor of electromechanical equipment and turnkey solutions in southern Africa, employing about 7,500 people.

Esorfranki Geotechnical project near completion


sorfranki Geotechnical has been completing on a continuous jacking operation in KwaZulu-Natal as part of an intricate new storm water drainage system being implemented to address land slippages caused by excess rainwater on Durban’s Bluff. The

A permanent solution to manage the flow of excess storm water off hardened surfaces at the military base on The Bluff started with the sinking of a 60-metre vertical shaft


project required the Esorfranki team to jack an inclined tunnel 130 metres long into loose sand.

South Africa’s Department of Public Works gave the go-ahead in 2011 for a permanent storm water drainage system to replace a temporary system installed at the local military base 12 years ago. Excess storm water from the 8.01 ha site will be channelled via a two-kilometre network of

The 60 metre vertical shaft had to be dynamically driven through a series of hardened lenses of calcified sandstone

Work underway on the rehabilitation of the western-facing slope overlooking Durban harbour

African Review of Business and Technology - November 2012

underground piping into a 60metre vertical shaft connected via the 130-metre long inclined tunnel to a sea outfall. The new system includes a series of 1.8metre diameter caisson soakaways, up to seven metres deep, to dissipate storm water that cannot be channelled to the new shaft outlet. The overall design of the storm water system has been undertaken by Sookan and Associates, with detailed design of the vertical shaft and the angled jacked tunnel executed by Esorfranki Geotechnical. Moore Spence Jones was appointed as the responsible geotechnical engineers.

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Agenda / South Exporting renewable energy from South Africa to Mozambique Power and automation technology group ABB is executing an order worth US$50mn from Hidroeléctrica de Cahora Bassa, S.A. to refurbish the Songo high-voltage direct current (HVDC) converter station in Mozambique. The converter station and associated high-power equipment are key components in the 1,920 MW HVDC link transmitting clean hydropower from the Cahora Bassa hydro plant in Mozambique over 1,417 kilometres to the grid in South Africa, where coal-based thermal power is the main source of electricity. This refurbishment project entails replacement of key equipment, including high-voltage transformers and direct current (DC) smoothing reactors. It will help to enhance power availability and improve system reliability, enabling HCB to honor their Power Purchase Agreement with Eskom, the leading South African utility. Export of renewable energy to South Africa, is an important source of income for Mozambique. ABB is also

supplying and installing arresters and measuring equipment as part of the turnkey project. The commissioning will be completed in two parts, the DC equipment in 2013 and the transformers a year later. “The Songo HVDC link supports the integration of renewable energy and helps meet the growing demand for electricity. We are delighted to contribute to the development of power infrastructure in the region,” said Brice Koch, head of ABB's Power Systems division. “This project also underlines our continued focus and commitment to growing our service business.” According to the International Energy Agency (IEA) power consumption is set to double between 2005 and 2040. ABB has more than 5,000 employees in Africa and expects to grow at least twice the rate of GDP growth - at between 2011-2015, driven by demand in the power, mining, oil & gas industry and housing sectors.

Connecting brands to township communities


n South Africa, township media company Keys Communications has declared its objective: to occupy all township streets with relevant information from brands that wish to have a presence in the township growth market. Keys Communications is an outdoor media owner seeking to empower brands, products and services access and positioning in South African townships. by using high definition production finishes on wall media to deliver quality and value. Keys Communications is closely

Keys Communications empowers township artists as well as township communities


connected to township communities, through local employment and an assetsbased community development model that uses existing township walls for advertising - generating income at a local level, empowering brands to empower communities. The company’s model essentially works on the following principle: that the more you spend with it, the more communities can grow. It is, in essence, township entrepreneurship combined with philanthropy. The giant outdoor layouts - including, wall wraps, township house wall media,

Keys Communications has worked for Nike SA, Supersport , Nedbank, Wimpy, Nestle (JV with another Agency), the Department of Water Affairs, Strepsils, Coca Cola SA (Powerplay Energy Drink), Guinness Draught Beer, Eskom nd AMKA’s Soft n Free GroHealthy

African Review of Business and Technology - November 2012

boundary wraps, and other alternative outdoor advertising offerings - add colour to sometimes drab surroundings. Keys empowers township artists as well as township communities. The business helps artists by displaying their talent to the public and the organisations that have bought wall space for advertising. This, in return has helped improve the image of township walls all over the country - and, in return for the advertising space, generates income for home owners who own the property selected for advertising.

Giant outdoor layouts draw attention and stand out, and adding colour to local surroundings

S04 ATR Nov 2012 Agenda West_Layout 1 18/10/2012 14:46 Page 15

S04 ATR Nov 2012 Agenda West_Layout 1 18/10/2012 14:46 Page 16


Agenda / West BlackBerry brand gets Lagos store Research In Motion (RIM), the maker of BlackBerry smartphones, recently opened the first official BlackBerry-branded retail store in Lagos. The move marks the expansion of RIM’s footprint in Africa from its headquarters in Johannesburg, South Africa, and underlines the company’s commitment to its partners and customers in one of the world’s fastest growing mobile markets. Robert Bose, RIM’s regional managing director for the Middle East and Africa, said that the company is pleased to cement its presence in the country with local staff, and to “establish a new legal entity and work with local business partners to expand our retail and customer care across Nigeria”. In association with mobile phone distributor Slot Nigeria, RIM, maintains the BlackBerry by SLOT store at Computer Village in Ikeja, Lagos. The BlackBerry solution was first launched in Nigeria in 2006 with carrier partners. BlackBerry products are now available in 40 countries across Africa from 90 carrier partners. According to market research from Canalys, RIM is the overall number one smartphone vendor in Africa.

A new hotel for Accra The new five-star Kempinski Hotel Gold Coast City is set to open early 2013. The hotel will be home to 269 rooms, including 22 luxury suites and two Presidential Suites, combining the finest of European hotel traditions with genuine African hospitality. It will also boast three restaurants, a lobby café with outdoor seating, a cocktail bar and 6,000sqm of retail space. The 3,000 sqm Resense Spa will offer 10 treatment rooms, a beauty parlour, fitness centre, yoga studio, organic food bar, 25-metre outdoor pool, two paddle tennis courts and two tennis courts. Adjacent to the Accra International Conference Centre, State House and National Theatre and with other commercial and Government buildings nearby, the hotel will create a focal point for Accra Gold Coast City. It will set new standards for luxury, quality and service across all of West Africa and the hotel is currently developing key local partnerships to help make the many hidden gems of Accra available to guests. A new sense of luxury Each room will feature beautiful hardwood floors, luxuriant textiles and carefully


The five-star Kempinski Hotel Gold Coast City is designed to set new standards for luxury, quality and service across all of West Africa” selected artwork celebrating the heritage and colours of Ghana. Rooms and suites will be spacious and 137 of the Deluxe Rooms will have their own balconies. Combining modern and traditional design, art, music, therapies and bathing, the Resense Spa will be finished in a range of rich, natural tones, from gold mosaics to natural stone and warm wood. Encompassing a total of 3,000 square metres, including the pool area, the spa invites guests across a dramatic threshold into a lounge with the atmosphere of a chic private members’ club. The hotel will also feature a range of distinctive restaurants and bars, catering for all tastes and occasions, and will offer advanced event and conferencing facilities.

African Review of Business and Technology - November 2012

HeidelbergCement builds facility in Togo


n Togo, HeidelbergCement is constructing a new US$ 250 million clinker plant with an annual capacity of 1.5 million tonnes in the town of Tabligbo, some 80 km north-east of the capital of Lomé. In addition, the company is building a new cement grinding facility with a capacity of 200,000 tonnes in Dapaong, 600 km to the north. “The construction of the new clinker plant and the cement grinding facility is part of our strategy of focusing on expanding our clinker and cement capacities in growth markets. In addition to Asia and Eastern Europe, these include, in particular, the countries of sub-Saharan Africa”, said Dr Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement. “As West Africa possesses only relatively small limestone deposits, the clinker required in cement production often has to be imported at high cost. Our new clinker plant is of great strategic importance as it sources the limestone from its own deposits.” The clinker will be processed to cement in HeidelbergCement’s grinding mills in Togo as well as in the neighbouring countries of Benin, Ghana, and Burkina Faso, replacing clinker that has previously been imported from overseas and thereby strengthening HeidelbergCement’s competitiveness in Africa. The investment project will stimulate the improvement of local infrastructure and housing, and is expected to create around 1,300 jobs locally, of which more than 200 at the plants. The project is conducted within the framework of a partnership between HeidelbergCement and IFC, a member of the World Bank Group, and its finance partners. Commissioning of the two new plants is scheduled for 2015. The capacity expansion in Togo is already included in HeidelbergCement’s capital expenditure plan.

S04 ATR Nov 2012 Agenda West_Layout 1 18/10/2012 14:46 Page 17


Agenda / West Smit Lamnalco’s new branded tug

The SL Gabon and the SL Libreville, the first tugs branded under Smit Lamnalco’s new corporate identity, have been contracted for a five-year period by Total Gabon to provide support in the offshore oilfields and to assist tanker operations at the onshore terminal of Cap Lopez, at Port Gentil, Gabon. “It is very satisfying that the first newbuild decked with our new corporate colours visualises the integration of two international marine service providers,” said Smit Lamnalco CEO Daan Koornneef. The newbuilds are Stan Tug 4200-type tugs, rugged twin-screw vessels with 68 tonnes bollard pull. Accommodating a crew of 16 and fully air-conditioned, the vessels can be used for towing, pushing, push-pull, berthing, anchor handling, hydrographical survey, line handling, firefighting, salvage, diving support and pollution control operations in all waters. Contract renewal The Total Gabon contract renews a longstanding partnership between the oil major and Smit Lamnalco. The newbuildings replaced two older vessels, and have joined the existing tugs Smit Manji and Smit Ozouri, built in 2007. For Total Gabon, the latest renewal extends a relationship in Gabon that can be traced back through SMIT to 1998. African Review of Business and Technology - November 2012


S04 ATR Nov 2012 Agenda West_Layout 1 18/10/2012 14:46 Page 18


Agenda / West Crane refurbishment to serve West African trade


ibdock has completed a complex containership crane refurbishment job, in a latest contract to involve a German owner - involving deck crane work that called for certification of strict welding procedures by Lloyd’s Register (LR), which approved all materials used. Aldebaran, a 2008-built 2785 teu capacity containership owned and managed by Reederei Horst Zeppenfeld, underwent a multi-faceted package of works at the Gibraltar-based yard. The ship is on charter to CMA CGM and was redelivered on schedule after a 23-day project. The yard has handled a succession of vessels for German owners

One of the mobile cranes used for the MV Aldebaran refitting

Gibdock undertook extensive crane renewal on the geared containership Aldebaran

this year, attracting ships operating in the Mediterranean and West African trades, with owners drawn to Gibraltar in part by minimal route deviation. Gibdock senior ship manager, Paul Cano, said meeting the requirements of the Aldebaran project demanded closely coordinated planning. Even before the vessel’s arrival at the yard, Lloyd’s Register requested production of test pieces copying proposed work, which were

tested before acceptance through LR’s Welding Procedure Qualification Records. “When the ship was docked, we needed to remove the three deck cranes from their foundations and transfer them ashore using two mobile cranes. One 250 tons capacity mobile was used to support the jib end of the crane while a second, 500 tons capacity mobile supported the crane housing. The shipboard cranes weighed over 50 tons each.”

WACEE on West African energy and environment Taking place at the International Conference Centre in Accra, Ghana, 6-8 November, WACEE’12 comprises a conference and an exhibition to provide a platform for power providers, technology suppliers, investors, and industry experts, as well as political and economic decision-makers, to discuss matters and opportunities in the area of clean energy. A rich region in a rich continent Africa is blessed with mineral, physical, biological and energy resources. This is especially true for West Africa with its rich resources in oil, gas, solar-, wind- and hydro energy; these resources are both opportunity and challenge to society, politics and industry. While Africa may well hold the key solution to the world’s energy crisis, the impact of human activity on nature and environment may also lead to challenging problems. An increasing demand for energy and growing economies requires smart technology in energy generation, in energy efficiency and in water and waste management; WACEE’12 has been developed to provide a platform for power providers, technology suppliers, investors, industry


African Review of Business and Technology - November 2012

experts and political and economic decision-makers to ensure the sustainable development of West Africa's energy and environmental ecosystem; the three-day exhibition features domestic and international exhibitors from the following sectors: - Oil and Gas; Hydropower; Renewable Energies (Solar, Wind, Biomass); Energy Efficiency; Water and Wastewater Management; and Waste Management. Business leaders and scientists participate at WACEE’12 Mr Patrick Martens, Delegate of German Industry and Commerce in Ghana, has spoken to the Business and Financial Times, of teh ways in which the exhibition responds directly to investor interest in West Africa’s clean energy and environment sectors; the conference will feature 200 participants, including over 40 business leaders and scientists who will discuss, in presentation and panels, the current energy and environment situation in the region.

S04 ATR Nov 2012 Agenda West_Layout 1 18/10/2012 14:46 Page 19


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S04 ATR Nov 2012 Agenda West_Layout 1 18/10/2012 14:46 Page 20


Events / 2012-2013 December



World Future Energy Summit

Salon Halieutis


Abu Dhabi, UAE

Agadir, Morocco




Southern Africa ICT


Maputo, Mozambique

International Conference on Intelligent Information and Networks (ICIIN)

MEFSEC Cairo, Egypt


Afri Green Expo Khartoum, Sudan

Malé, Maldives


Africa Energy Indaba Johannesburg, South Africa



January 14-17


Sharjah, United Arab Emirates

Abuja, Nigeria


Africa Mining Indaba


Nigeria Oil & Gas

Cape Town, South Africa

Harare, Zimbabwe 25-27

MilSatCom Middle East & Africa

East African Petroleum Arusha, Tanzania

Dubai, UAE

Dedicated to developing Mozambican infrastructure


he Infrastructure Partnerships for African Development (iPAD) Mozambique holds its 2012 conference and exhibition - iPAD Mozambique 2012 - on 13-15 November, with a focus on infrastructure development in Mozambique that highlights expansion and improvement projects in the country’s transport, energy and power sectors. The prospects are great. US$22bn will be invested in the transport sector, while US$9.71bn has been earmarked for developing the energy and power sector. Therefore, this unique and exclusive event will bring together government officials and private investors to discuss and present infrastructure partnership opportunities. Experience at the conference iPAD Mozambique’s conference programme features experienced, senior speakers who will be discussing the need and planned projects for gas monetisation infrastructure development in Mozambique. This year there will be a particular focus on infrastructure development, to assist Mozambique in the creation of a sustainable gas industry and to increase economic wealth by initiating a clear gas strategy and long term masterplan. More


African Review of Business and Technology - November 2012

than 40 experts will share insights and best practices on infrastructural development in the country, more than ten financial institutions will discuss investment into the gas industry. An interactive and international exhibition iPAD Mozambique offers a dedicated two- day gas monetisation and infrastructure development programme to support efforts aimed at turning the country's natural gas resources into commercial products. There will be plenty of opportunities to discuss investment and partnerships with high-level government and business representatives. There will be interactivity and broad international participation at the exhibition, with promotion of the latest technologies in gas and electricity industries. For further details, visit the event website: or contact: Moises Antunes Email: Telephone: +27 21 700 3560

S05 ATR Nov 2012 Bulletin 01_Layout 1 18/10/2012 14:49 Page 21

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Bulletin / Power-Gen Africa Power-Gen Africa connects power professionals

Power�Gen Africa has engaged the CEO of

Aggreko opens Namibian centre

Eskom, Mr Brian Dames, to take part in the

Specialist in the provision of temporary

Taking place 6-8 November 2012 in

event’s keynote opening on 6 November

power and temperature control services,

Johannesburg’s Sandton Convention Centre,

2012; Eskom is the largest power producer in

Aggreko has opened a new service centre in

the inaugural Power-Gen Africa conference

sub�Saharan Africa, with its large base of

Walvis Bay - the first operation to be based in

and exhibition ( is

mainly coal fired power stations supplying

Namibia; the facility was inaugurated by

a must-attend event providing

South Africa and neighbouring countries.

Honorable Willem Isaak, Deputy Minister of Mines of Namibia, and Martin Foster, Head of

comprehensive coverage of the power needs, resources and issues facing electricity

Promoting renewable power

Local Business, Aggreko Southern and East

generation industries across sub-Saharan

Co-located with power-Gen Africa,

Africa - with Cleophas Mutjavikua, governor

Africa, helping define the energy sector of the

Renewable Energy World Africa offers a

of the Erongo region, also in attendance.

future; over three days, Power-Gen Africa

comprehensive view of the energy needs,

empowers professionals to engage, listen and

resources and issues facing the renewable

learn about the current and future direction

industries across sub-Saharan Africa; over

Power-Gen events supported by Pratt & Whitney

of the power sector.

three days, Renewable Energy World Africa

Pratt & Whitney is committed to

provides opportunities to engage, to listen

sponsorship for the inaugural Power�Gen

and to learn about the current and future

Africa, as it promotes its critical solutions

direction of this important specialist sector.

for emergency power requirements,

Finnish power firm sponsors reception and conference Wärtsilä is a confirmed Diamond Sponsor of

baseload plants, cogeneration and

the inaugural Power-Gen Africa, and is set to

Eskom’s build programme

combined cycle configurations, working

host the event’s opening reception,

Power stations and power lines are being

with incumbent utilities, independent

scheduled for the afternoon of 6 November

built on a massive scale to meet rising

power producers or EPC contractors; Power-

2012, the conference proceedings, and a

electricity demand in South Africa; Eskom's

Gen Africa provides a vital platform for

VIP/Utility Partner Programme Lounge;

capacity expansion budget is R385bn

companies like Pratt & Whitney who are

Wärtsilä supplies power plants for the

(US$45.7bn) up to 2013 and is expected to

interested in working with the local power

decentralised power generation market -

grow to more than a trillion rand by 2026,

industry in sub�Saharan African countries

offering power plants for baseload, peaking

as it doubles its capacity to 80,000MW by

and those looking to invest in the sector.

and industrial self-generation purposes, as

2026 - with a programme that began in

well as for the oil and gas industry.

2005, an additional 4453.5MW already

Eskom CEO set to deliver keynote speech

commissioned, and plans to deliver an

Andritz committed to hydropower plant in DR Congo

additional 16,304MW in power station

Technology Group Andritz is committed to

capacity by 2017.

the reconstruction and rehabilitation of two Francis units (178 MW each) for the Inga 2

Expertise in green energy

hydropower plant, DR Congo; the contract

Renewable Energy World Africa offers a focus

value of this project, which is supported by

of technical expertise and technological

World Bank financing, is EUR45mn

excellence in the green energy sector; “With

(US$58.2mn), with commissioning

technology advancing quickly and

scheduled for 2015.

manufacturing costs lowering, renewable

CEO of Eskom, Mr Brian Dames


power generation will play a big role in a new

Gender and sustainability

energy infrastructure in Africa offering

UN Development Programme publication

solutions in both rural distributed

‘Powerful Synergies: Gender Equality,

applications and large-scale projects such as

Economic Development and Environmental

hydropower, CSP, wind and biomass,” said

Sustainability’ reports on how gender

Nigel Blackaby, Renewable Energy World

equality in access and control over resources

Africa Event Director.

ensures environmental sustainability.

African Review of Business and Technology - November 2012

S05 ATR Nov 2012 Bulletin 01_Layout 1 18/10/2012 14:49 Page 23

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Bulletin / Africa Com Africa Com showcases digital innovation in dynamic markets

WiMAX firms introduce interoperable products

telecom operators including Telus, Colt, Oi

Africa Com 2012 (

The WiMAX Forum recently hosted the first

features an extensive Ethernet service

takes place in Cape Town, South Africa, from

WiGRID PlugFest event in Vancouver, Canada,

assurance toolset with a suite of advanced

13-15 November 13-15, with a clear focus on

to enable utility company experts and

timing-over-packet synchronisation

highlighting new players, innovative start-

equipment vendors to engage in hands-on

technologies, including a 1588 grandmaster

ups, creative business models, and dynamic

testing of equipment interoperability; WiGRID

clock - and can be used to provide timing-

ecosystems across the continent; with the

is a new IEEE 802.16 system profile being

over-packet services in wholesale networks,

evolution telecommunications and media,

developed by the WiMAX Forum against the

and to serve as a single instrument for

industry players must adapt - and Africa Com

requirements of utility companies, with

empowering the convergence of 10GbE

is set to help address the challenge with

important features that optimise IEEE 802.16

business, wholesale and mobile network

inspirational speakers delivering on

standard’s-based WiMAX equipment for a

services over the same infrastructure.

developments affecting all stakeholders:

range of field area networking applications

telcos, OTT players; content providers;

and use cases.

Brasil, and NTT Japan; the ETX-5300A

The largest fibre network in SA Liquid Telecom has built the largest fibre

vendors and end-users.

AfricApps comes to Africa Com

network in Southern Africa, providing

The organisers of Africa Com, Informa TM, has

backhaul between most urban areas and

launched AfricApps, a new all-African event

last mile connectivity in the main cities of

for application developers to connect, create

Zambia, Zimbabwe, Botswana, Lesotho and

and customise their offerings in collaboration

South Africa; the company’s new fibre link

with operators, OEMs, media companies and

in the north of South Africa stretches from

software providers; key issues to be discussed

Johannesburg to Zimbabwe, stretches

on 14-15 November include: creating

across 521km to connect to Liquid’s pre-

discoverable apps; marketing your apps to

existing fibre network, to carry capacity

Alcatel-Lucent extends Ghana’s e-government services

the African markets; successful monetisation

from inland submarine cables. Liquid’s

models; choosing the correct payment

network is the first to cross country borders,

Technology firm Alcatel-Lucent has been

platform; and who to partner with to

covering areas where no fixed network has

workign with NITA - the information and

maximise success.

existed before.

Communications - to expand

RAD to showcase Ethernet service aggregation platform

The corporate customer focus at Nigeria Com

communication links between central and

At Africa Com 2012, RAD Data

The 3rd annual Nigeria Com, held recently

regional administration offices in support

Communications will premier its award-

in Lagos over two days, offered much

of e-Ghana, a national initiative to

winning ETX-5300A Carrier Ethernet Service

relevant debate on developments within

develop local IT services and improve the

Aggregation Platform - the ETX-5300A was

the telecommunications, media and ICT

transparency and efficiency of

cited recently as Best Carrier Ethernet

industry - and a chance to take a look at the

government functions; Alcatel-Lucent is

Aggregation Product EMEA by a panel of

opportunities in Africa’s largest and

implementing a 600km fibre-optic

judges from industry analyst firms

arguably most exciting market; the main

‘backbone’ network to provide high-

including Ovum and Infonetics, and

message for 2012 was that, despite

To say that the event exceeds my expectations would be an understatement.” - Sydwell Shikweni, Vodacom SA

communications technology (ICT) policy arm of Ghana’s Ministry of

speed data links between central

challenges, Nigeria offers growing

government functions and remote and

opportunities to those who can take them,

rural locations, and a national data centre

that the key to success is to deliver what

facility to support the network, through

consumers want - but that this seemingly

close collaboration with HP, a global

simple objective is not an easy task in an environment where behaviours, technologies

alliance partner for the delivery of converged ICT solutions.


The award-winning ETX-5300A Carrier Ethernet Service Aggregation Platform, from RAD Data Networks

African Review of Business and Technology - November 2012

and trends are changing rapidly.

S05 ATR Nov 2012 Bulletin 01_Layout 1 18/10/2012 14:49 Page 25

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S06 ATR Nov 2012 Finance_Layout 1 18/10/2012 14:52 Page 27


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he New World Nigeria investor’s summit, held in London in the UK, drew together a galaxy of Nigeria’s top cabinet ministers and State governors to present Nigeria’s case as an investment destination. On the first day of this three-day event, cosponsored by Nigeria Olympic Committee and Bank of Industry and organised by Brand Communications, Dr Ngozi Iweala-Okonjo, the Minister of Finance, made a compelling case for the significant economic achievements that have been introduced in recent years. She opened her remarks by insisting that the main thrust of her economic policies has been to transform an expansionary budget into one of fiscal consolidation. This, she told delegates would stimulate growth. “We recognise that we must manage our macroeconomy wisely,” she said before describing how the insertion of a benchmark oil price within the national budget, first introduced

by her when she previously served in formerPresident Olusegun Obasanjo’s administration, has had the effect of bearing down on volatility. The 2012 budget’s benchmark oil price was set at US$72, down from US$75 in 2011, and considerably below the actual spot oil price that has been consistently above US$100 this year. Running through the main economic indicators, Iweala-Okonjo pointed out that the State’s recurrent expenditure, as a percentage of the budget, has been falling steadily, from the 77.18 per cent of 2010 to 74.13 per cent last year and 71.47 per cent this year. Capital expenditure has, meanwhile, been rising from 22.82 per cent and 25.57 per cent to 28.53 per cent in the years 2010, 2011 and 2012 respectively. The fiscal deficit, currently standing at N1,136bn (US$7.126bn), or 2.85 per cent, has been falling from the 3.35 per cent of 2010 and 2.96 per cent in 2011.

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S06 ATR Nov 2012 Finance_Layout 1 18/10/2012 14:52 Page 28



“Fiscal consolidation and growth,” IwealaOkonjo insisted, “are not a contradiction in terms, and are really happening.” This is actually crucial if Nigeria is to successfully navigate the uncertainty of the current global economy, she added. One of the major challenges of introducing fiscal consolidation, the minister said, was to stem leakages in oil revenues. Earlier this summer, with the support of President Goodluck Jonathan, Iweala had established a 15-strong committee chaired by Aigboje AigImoukhuede, group managing director and chief executive of Access Bank, to further investigate petroleum subsidy verification procedures. It would appear that around half of the N888bn (US$5.57bn) budgeted for subsidies this year will be clawed back by government. As well as the issues surrounding misappropriation in the fuel subsidy process, the outright theft of crude oil is also being addressed. The Minister stated that this practice is thought to cost Nigeria some US$5bn a year. Where there is more than oil But it is not just the oil industry that is being targeted. Iweala-Okonjo described the measures being introduced by the Federal government to improve tax collection with the establishment of the Debt Enforcement and Special Prosecution Unit in the Federal Inland Revenue Service (FIRS). “Over the past five to six years,” Iweala Okonjo reported, “we have managed to triple the amount of tax we collect.” She also provided more recent figures saying the work of the new unit “has led to a cumulative tax collection between January and May 2012 of N1.9 trillion – an increase of N384.4bn, or about a 20.4 per cent increase, over the same period in 2011.” She added that developing a programme for a comprehensive review of taxes and the means of improving collection, by working closely with FIRS, were high on her ministry’s agenda. But interestingly, she noted that the multiplicity of taxes was being looked at with a view to streamlining the whole procedure at the Federal, State and local levels. The minister then described how government is making every effort to rein in government expenditure, within the 2013 budget issuing retirement bonds, and a Sinking Fund for the purpose of reducing debt by repaying or purchasing outstanding loans and securities held against the state. As Iweala-Okonjo reiterated to the New World Nigeria delegates, it is pivotal for the country to continue to stimulate growth even as it navigates the current uncertainty of the global economy. As for the international financial institutions reaction to Iweala-Okonjo’s


initiatives, Nigeria’s sovereign credit ratings have been upgraded since she returned to the Nigerian cabinet a little over a year ago. Fitch have rated Nigeria as BB- stable while Standard & Poor’s have assigned a B+ Positive status, upgraded from the B+ it suggested in December 2011. These ratings have helped Nigeria’s Eurobond to better its performance. The price rose to US$109.02 in late July against US$103.49 at the beginning of year, and its yield fell to 5.41 per cent from the 6.23 per year recorded at the beginning of 2011. Foreign Reserves have also risen slightly from US$32.9bn at the end of 2011 to US$37.7bn in June 2012 but have declined recently on the back of global developments to stand at US$36.4bn. The target is to accrue US$50bn by the end of the year. Seeking economic strength Minister Okonjo-Iweala was able to confirm that Nigeria’s Excess Crude Account has improved. This is all positive and welcome, but as the minister commented, Nigeria’s economy remains vulnerable, and buffers need to be built up. A key plank to this policy is to establish a sovereign wealth fund, officially known as the Nigerian Sovereign Investment Authority (NSIA). The NSIA actually consists of three sovereign wealth funds: a future generation fund; an infrastructure fund and a stabilisation fund. Already, US$1bn has been earmarked for investment in the three-arms of the fund, and transferred from the Excess Crude Account which it had been intended would be closed down to be replaced by the new Authority. But this move has met strong resistance from Three of the top positions in NSIA had been filled, after an exhaustive process that began last February with 713 applicants, shortlisted to 16. Two of the top executives, namely the Chief Executive Officer and Chief Risk Officer. However, in a curiously worded statement by the Ministry of Finance “upon completion of due diligence, the candidate for Chief Investment Officer has been dropped and the position will be re-advertised shortly”. Nevertheless, a strong non-executive board had been selected. They are the former deputy governor of the Central Bank of Nigeria, Mahey Rasheed as chairman (the former managing director of JP Morgan who now sits on the board of First Bank of Nigeria), Arnold Ekpe (the outgoing CEO of Ecobank), Hide Zeitlin, Bill Awosika, Bisi Soyebo, Hassan Usman and Stella Ojekwe-Onyejeli as members. Uche Orji, will serve as NSIA’s chief executive and managing director effective from 1st October. Orji has worked at UBS as well as at J.P. Morgan Securities in London, and has held top positions in the Thomson Reuters Extel Survey.

African Review of Business and Technology - November 2012

He was previously an analyst and fund manager with Goldman Sachs Asset Management based in London and worked for Diamond Bank Ltd and Arthur Andersen LLP. The crisis in Nigeria’s banking sector appears to have been resolved with all 24 banks now fully capitalised, the Asset Management Corporation of Nigeria (AMCON) playing a key role in the rescue of the eight banks in which the Central Bank of Nigeria performed an emergency intervention. A range of financial soundness indicators are also in positive territory. The Industry Capital Adequacy Ratio, for example, is now above 18%, with non-performing commercial loans now standing at about five per cent. Attention is also being given to the capital markets with the introduction of a forbearance package to market operators; a review of taxes, stamp duties, and other charges; stimulating an increase in the number of listed companies; and increasing pension fund investment. Okonjo-Iweala has presented the Medium Term Fiscal Framework of the 2013 Budget to the Federal Executive Council. Echoing what she said in London, she actually christened her budget ‘Fiscal consolidation with growth’. According to her, Nigeria’s projected revenue for 2013 was put at N3.891trillion (US$24.4bn) while expenditure has been set at N4.929 trillion (US$30bn). She said government would reduce recurrent expenditure from 71.47 per cent in 2012 to 68.66 per cent next year, adding that capital expenditure will increase from 28.53 per cent to 31.34 per cent in 2013. The budget was based on oil production of 2.53mn barrels a day, with the benchmark price at US$75/barrel. She announced, “The focus of the Federal Government’s proposals on ‘Fiscal consolidation with growth’ Budget 2013 is that it should make a practical impact on the areas that matter most to the Nigerian people – job creation, power supply, roads, rail, other infrastructure and, of course, agriculture.” In a further developments, Nigeria plans to issue a Eurobond of up to US$1bn by the end of the year which will be earmarked for investment in the country’s oil and gas sector. In replying to a question from African Review about the long-mooted issuance of diaspora bonds, Okonjo-Iweala said that she hoped that a tranche of this issuance will be reserved for diaspora investees. The minister, who enjoys wide-spread international respect and domestic support, also pledged that the country’s resources would be managed prudently and transparently, while ensuring that priority was given to the key growth sectors of the economy and national security. ■ Stephen Williams

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FirstBank’s new mobile money service Determined to ensure that the majority of unbanked and underbanked Nigerians enjoy superior financial services, FirstBank delivers mobile money service FirstMonie, to offer significant support for money transfer services


igeria’s Number One bank brand*, First Bank of Nigeria Plc (FirstBank), recently launched its mobile money service, FirstMonie, in a move that is seen as a major push for local money transfer services. With the launch of this service, the stage is now set for the Bank’s customers and anyone in Nigeria with a mobile phone to enjoy financial services, using their mobile phones to send money, pay bills, top up their phone airtime, do shopping, deposit and withdraw cash, without the need to visit a bank branch. The slogan, “FirstMonie is the new money”, encapsulates both the ambition and vision of the new service. Stakeholder support for a unique service The FirstMonie launch event, held at WheatBaker Hotel, Ikoyi, Lagos, on the 19th of September, was witnessed by FirstBank’s network partners - including Globacom, Airtel, Etisalat and MTN, as well as key stakeholders and executives of the Bank. The operating platform for the FirstMonie service is powered by Fundamo, a Visa company. Speaking at the launch, FirstBank’s Managing Director and Chief Executive Officer, Mr Bisi Onasanya said: “FirstMonie services have been created with three principles in mind. The first is defined by how consumers receive money to fund their unique lifestyles; how consumers spend money for their unique lifestyle needs; and thirdly, the ability of the consumer to be informed and in control of their money. “With almost 700 branches and business correspondent outlets strategically located across the country, about 1,900 ATMs - cash deposit, cardless and biometric, over six million active accounts and over 18,000 point of sale terminals, FirstBank offers the best and the most effective mobile money platform in Nigeria. We are already recruiting agents across the country to meet the needs of our consumers,” he added. Technology to support transactions Beyond mobile money services, FirstBank has in place a world-class IT and electronic payment infrastructure to deliver an unparallelled financial transaction experience to its discerning customers. These include: Automated Teller Machines (ATMs); Point of Sale (POS) Terminals; FirstOnline - the Bank’s internet banking; and a bespoke Card portfolio comprising of Debit, Credit and Prepaid card variants issued on the brands of Visa, MasterCard and Verve amongst other electronic payment solutions. “Thanks to services like FirstMonie, we see significant growth opportunities in mobile financial services in Nigeria in the coming year. Only 30 per cent of the country’s 160mn people have access to formal financial services** while there are more than 93mn mobile phone subscriptions, the most in Africa***. These factors have created an


African Review of Business and Technology - November 2012

L-R: Austin Okere-Group, Chief Executive Officer, Computer Warehouse Group; U K Eke, Executive Director, Public Sector South, FirstBank; V Sankar Naraynan, Executive Director, Inlaks Computers Ltd

unprecedented opportunity for mobile financial services to act as an agent of positive and fundamental social, economic and technological change,” said Hannes van Rensburg, CEO of Fundamo, a Visa company. Empowering Nigerians Also speaking at the launch, FirstBank’s Group Head, e-Business, Mr Chuma Ezirim, said, “FirstMonie has been innovatively created to empower Nigerians, both banked (those who already have bank accounts) and especially, the un-banked (those who do not have bank accounts), providing them the most affordable, safe, trusted, fast and convenient access to doing everything they do with cash today. In ten years, 100mn people have been newly ‘banked’ using mobile technology, and while the industry has grown rapidly, the segment is still far from reaching its potential. GSMA figures show that 2.5bn adults still lack access to formal financial services, such as savings, payments, loans and insurance (the GSM Association represents the interests of mobile operators worldwide).” For subscribers wishing to use the new FirstMonie service, their mobile phone number will serve as the account number. Registration is free, simple and secure, all a subscriber has to do to sign up is dial *894# and follow the prompts. Alternatively, subscribers can sign up online at or at any FirstMonie agent location. ■ Notes: * (The Banker, February 2012) ** (FinGlobal Findex Data base, April 2012, World Bank) *** (GSMA, 2011)

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Going for the cashless option The decision by the Central Bank of Nigeria to instigate a pilot programme in Lagos State to investigate the viability of cashless financial transactions has aroused a storm of controversy


hen, at the beginning of this year, the Central Bank of Nigeria’s (CBN) governor, Lamido Sanusi, announced a new policy of encouraging cashless financial transactions, he may not have been prepared for opposition it would arouse. What the governor was proposing was the introduction of banking fees for cash handling, reducing free daily cash withdrawals and deposits to a maximum of N150,000 for personal accounts and N1mn for corporate clients (from N500,000 and N3mn respectively). Bank customers would be able to withdraw or deposit what they chose, but Sanusi clarified that above these daily limits they would be liable to pay a fee of about one per cent in bank charge. Stimulation or sabotage? This CBN initiative aroused a number of critics. For example, the Yoruba National Assembly accused the Federal Government, through the CBN, of deliberately attempting to sabotage Lagos State’s commercial base, the epicentre of the Yoruba economy. But the CBN countered that the cashless economy policy would stimulate mobile payment services, challenge the traditional barriers hindering financial inclusion of millions of Nigerians and bring low-cost, secure and convenient financial services to urban, peri-urban and rural areas alike, across the country. Other benefits might include a reduction in the cost to banks of handling cash; a reduction in fraudulent transactions and money laundering activities; a deepening of revenue collections and provide the means for the Ministry of Finance to better analyse the dynamics of the economy. However, detractors thought that a number of risks outweighed the benefits. These could be defined as allowing cyber criminals an open door to defraud bank customers as little had been done in terms of adding to the


The Central Bank of Nigeria

country’s financial sector’s ability to protect data. It is a sobering fact that worldwide financial fraud (which by definition is difficult to quantify) is almost as large in scale as the global trade in illicit drugs. Aware of this fact, Nigeria’s commercial banks – that have all announced a far healthier set of results this year, supported by solid first half earnings, indicating that the sector reforms are finally starting to bear fruit

African Review of Business and Technology - November 2012

– have all pledged to invest heavily in bolstering protective measures to counter financial fraud. Public and personal protection Significantly, the commercial banks have publicised the ways that customers can protect themselves in terms of keeping online passwords and personal identification numbers secure, and warning against the

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Lamido Sanusi, governor of the Central Bank of Nigeria

Razia Khan, Regional Head of Economics, Africa at Standard Chartered Bank

Bismarck Rewane, chief executive of Financial Derivatives Company

risks of identity fraud and “phishing” – where account holders are duped by the fake e-mails of fraudsters, purporting to be from their banks, into revealing details of their accounts. The incidence of “phishing” fraud has increased exponentially in recent years, especially as mobile as well as internet banking services have been rolled out in Nigeria. Nevertheless, it has been reported in the Nigerian press, the banks have been encouraged by the CBN to beef-up their security measures. Governor Sanusi, himself an ex-commercial bank executive having previously served as the chief executive of First Bank of Nigeria, has urged them to meet the growing threat of cyber-crime. For example, in order to strengthen banking security, special attention is being recommended surrounding data encryption, cloud computing, network protection and identity authentication. The US-based Safenet International, working with its local partner Witty International New Inventions have been undertaking consultancy work, not only with the banking sector but the major retail and service sectors that will be amongst the first-movers to introduce cashless financial transactions. Furthermore, a new generation of ATM machines are now being introduced for the Nigerian consumer that can not only provide the means to withdraw money but also deposit cheques and cash and make selected payments, such as for amenity bills and insurance premiums. In addition, the new generation of ATMs would not be brand specific but able to transact across the banking sector.

Making notes So, it may seem counter-intuitive for the CBN, even as it conducts the pilot cashless financial transaction policy in Lagos State, to have announced the introduction of a new N5,000 note. Sanusi is proposing to roll out the new N5,000 notes early in 2013 and to convert the present N5, N10 and N20 notes to coins. He has confirmed that he has made provision to set aside no less than N40bn on this exercise, arguing that it was the only way to address rising inflation. This proposal has also generated debate with analysts warning that it might have a negative impact on the economy. Opponents complain that a proper value assessment has not been conducted on the cost to the Nigerian taxpayer and the extent of the benefits. The Trade Union Congress (TUC), for example, argues that the new policy will not serve the interest of Nigerians but, rather, will aggravate the country's economic crisis by posing an inflationary pressure. Bismarck Rewane, the economist and chief executive of Financial Derivatives Co and one of Nigeria’s best known and respected economic analysts, has given the new note a less than wholehearted welcome. Describing the national debate on the new high value bill as “a non-issue”, he makes the point that the introduction of the N5,000 note had been “conceptualised about four years ago, long before the introduction of the cashless policy. “But now,” Rewane says, “with the cashless policy, there is no need the high denomination notes as everybody will be going cash-less”. Sanusi’s opinion differs, as he insists the introduction of a higher bill will actually

complement the CBN’s cashless policy, substantially reducing the volume of notes in circulation. Razia Khan, Regional Head of Economics, Africa at Standard Chartered Bank, tends to agree with Sanusi and supports the CBN’s plan. Khan, who is the Regional Head of Economic Research for Africa at Standard Chartered Bank says that “the introduction of a higher denomination note is meant to help with the broad effort of the cashless reforms. It fits with the theme of reducing the cost to banks of having to deal with the management of large quantities of notes. “It is hoped that this, as well as shared services, will reduce banks’ costs of operation – a benefit they can then pass on to depositors through higher deposit rates. A N5000 note does not even equate to US$50, so the magnitude needs to be borne in mind. Middle class Nigerians will probably find that it eases cash transactions. Lower income Nigerians may not use the new note as frequently, but it should make the handling of cash that they have saved easier.” Significantly, Nigerian President Goodluck Jonathan has given Sanusi public approval to roll out the reforms. And given the general approval of the way that Sanusi has delivered stability to Nigeria’s banking sector over the last two years, most observers are prepared to accept the governor’s analysis. In general, the rating agencies have reported that the banks are performing well, with First Bank of Nigeria, Zenith, GTBank and UBA enjoying a ‘'stable outlook”. This bodes well for the country in general and the banking sector in particular, even as it grapples with the technological challenges of a new, cashless era. ■


African Review of Business and Technology - November 2012

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Data helps make better decisions What happened when telecommunications company Etisalat Nigeria went live with Oracle Communications Data Model, to analyse growing volumes of data, and improve business management


racle Communications has been collaborating with Etisalat Nigeria, a Nigerian communications service provider, to support the telecoms firm as it switched on its operation with Oracle Communications Data Model, which helps it more quickly analyse growing volumes of diverse data, and make better business decisions. Oracle Communications Data Model allows Etisalat Nigeria to analyse data across multiple business areas - including customer, revenue and network management - to react quickly to technological, regulatory and business challenges in both prepaid and postpaid markets. Upon implementing Oracle Communications Data Model on Oracle Exadata Database Machine X2-2 Half Rack, Etisalat Nigeria reduced the time required to aggregate and analyse data by 99 per cent[1]. The company can now load call detail records in near real-time, and has gained improved insight to the behavior of its customers and their propensity to churn. Now able to make decisions based on near real-time data, Etisalat Nigeria can take immediate action to prevent customer churn, deliver personalised promotions and identify and address revenue leakage sources. “Considering the current data explosion in the telecommunications space, it was critical for Etisalat to implement technologies capable of collecting and getting the most from data in its various markets. The Oracle Communications Data Model running on Oracle Exadata provides Etisalat with a scalable and flexible solution, ensuring it remains competitive and maintains its position as a leading communications provider in the


and Exadata solution has greatly improved our ability to quickly and efficiently retrieve and analyse data from a variety of sources. Transactional data is processed in near real-time, taking about 45 minutes to process data for a full day, which is a significant improvement on the eight hours it used to take to process the same data. Oracle’s technology has allowed us to offer customers relevant and personalised services, which we can quickly make available. Because the project only took Bhaskar Gorti, senior vice eight months to implement, we president and general manager, were able to experience benefits Oracle Communications much sooner than expected,” said Ajibola Ajia, IT Specialist, Intelligence, Implementation & region,” said Bhaskar Gorti, senior vice president Integration, Etisalat Nigeria. Etisalat also and general manager, Oracle Communications. implemented Oracle Business Intelligence Enterprise Edition 11g to increase the Boosting development, reducing cost efficiency of its business operations and gain The solution includes pre-built dashboards and additional contextual and actionable insight. other customised components to jumpstart Etisalat selected Oracle’s technology following development and reduce the cost, complexity a competitive evaluation to replace its legacy and risk of data integration. Implemented in just business intelligence (BI) systems, which lacked eight months, Oracle Communications Data the functionality, performance and scalability for Model also provides Etisalat Nigeria the a dynamic and responsive BI environment. flexibility to upgrade systems faster and The Oracle Communications technology efficiently as market conditions change. was implemented by Oracle Oracle Communications Data Model is PartnerNetwork Gold Level Partner purpose-built for communications service Bluechip Technologies Ltd, Nigeria. ■ providers and has been conformance certified Notes: with the industry's TM Forum Information [1] Query executed in 62 seconds on Oracle Framework (SID) standard, which fosters Exadata X2-2 Half Rack running Oracle interoperability with providers’ systems. Database 11g Enterprise Edition Release Etisalat Nigeria has deployed Oracle , compared to a previous execution Communications Data Model on Oracle time of 7,200 seconds for same query on HP Exadata Database Machine, which offers UNIX running Oracle Database 10g Enterprise extreme data warehousing performance with Edition Release, delivering a 99 per faster upload and query speeds. cent decrease in time executing the query “The Oracle Communications Data Model

African Review of Business and Technology - November 2012

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How email marketing makes it over direct mail One of the best things about email marketing is specificity. Many may not know this but, it is possible to create email lists that target just the audience you want to reach


ne of the best things about email marketing is specificity. Many may not know this but, it is possible to create email lists that target just the audience you want to reach. This means that you can contact those potential business leads that you know are out there but may not have known how to get their contact information. It is possible to create the email lists that you need to help your business thrive - instead of the list that someone else thinks you need. There are several specifiers that you can utilise to craft a list that will be encouraging to your business success. For example, you can create lists by geographic region and hobby. Let's say you want a list of prospective clients in your area who are into crafts - you can get just that information with the click of a button. Saving money with smart marketing There are several reasons why you would want to use email marketing as opposed to direct mail marketing. If you examine the numbers, you'll find out the tally shows that email marketing is far superior. You can save money with email list marketing and therefore make your marketing dollar to go further. The truth of the matter is that, email marketing just costs less than direct mail marketing. Also, there is sadly a high chance that the direct mail marketing information your company receives will be outdated. What this means is that not only are you spending more money to implement your campaign, the likelihood that you are sending costly materials to inaccurate addresses is also increased. Obviously this will result in a double loss, time and again, and its an expense that you likely do not want to incur. In addition to the lower cost factor, email is also a much more flexible option for marketing. Email is malleable and adaptable, meaning you can alter your message more easily and quickly to adapt to trends and changes in your industry. You can build your


Graphic: Sean MacEntee

own targeted email list to make sure you get your point across to the right people. With direct mail, much more time elapses between brainstorming the marketing idea and actually being able to implement it. Between creating the ad campaign, getting it to the printer, getting it back from the printer, addressing all those envelopes, paying the postage, and delivering it to the post office, you could have sent countless emails, and for a good deal less money. Also, email allows your prospective buyers to take immediate action by including links in your email campaign. From your email, your clients can click right onto your homepage and make a purchase. Direct mail does not afford you that - rather, the customer has to go figure out how to reach you from paper to PC or from paper to store. Bottom line, you want the best for your company, and email lists are an advantageous addition to your ability to achieve higher sales and higher revenue. So make sure to get the email lists that your business needs to thrive.

Social media may be attractive for online marketing, but email remains the solid option. Email marketing remains one of the top spending priorities for online operation, after search and display advertising. Why? Unlike social media, email is virtually universal. Many corporations still ban or limit social media use within their walls, but none ban email. Even if email is filtered for spam, it will not be blocked completely. It’s direct, costefficient, and, if done properly, offers an effective channel for lead generation, nurturing and sales. When integrated with social media tools, email becomes even more powerful. The inclusion of social media sharing buttons, for example, in email may generate clickthrough rates around 30 per cent higher than email sent with no sharing options. One key concern among email marketers is open rates. How can you create subject lines that increase the chances of return? How can you use email marketing most effectively and avoid overloading recipients with information? How can you grow your email marketing list? How do you avoid mistakes that will cost you readers? What are the best ways to integrate email and social media marketing efforts to improve results through both channels? ■

Email regulations confuse businesses


orporate email archiving and retention policies are muddled and unclear, with many businesses leaving themselves exposed to potential litigation or compliance issues, according to new research launched today by Mimecast®, the leading supplier of cloudbased email archiving, security and continuity for Microsoft Exchange and Office 365. The research, which surveyed IT managers on their organisations’ email policies and archiving practices, found that just 20 per cent of businesses (23 per cent globally) retain archived email for three years or more, with one in four businesses (26 per cent globally) admitting that they do not have a clear policy on retaining email at all. The sample consisted of 200 US respondents, 200 from the UK and 100 from South Africa. The research was conducted by Loudhouse Research, an independent consultancy based in the UK.

African Review of Business and Technology - November 2012

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Mobile Communications

Boosting the battery business How a start-up in energy storage delivers immediate return on investment in telecommunications markets


E’s Energy Storage business recently committed US$63mn in new Durathon battery orders since the business launched in July 2012. In fact, in only its first few weeks of operation, the business secured 10 new telecom customer orders across several regions - including Africa, Asia, India and the USA - powering a total of more than 3,500 cell towers. The breakthrough battery provides reliable and cost-effective energy storage options for a broad range of global customers and is being produced at GE’s advanced manufacturing factory here. “Our main challenge is downtime due to frequent power outages on the grid. For our sites located in densely populated areas where wireless signals and data transmission loads are heaviest, the Durathon battery has proven to be the perfect innovation solution for us to implement.” Prescott Logan, General Manager, GE Energy Storage said, “Durathon batteries help solve key challenges for customers in emerging markets, where power outages and cycle disruption are prevalent, and in developed markets where batteries currently take up large spaces in cramped urban centers. The technology is unique because it can function in a variety of extreme conditions and store as much energy as leadacid batteries twice its size while lasting up to 10 times as long.” Environmental considerations GE’s innovative Durathon battery technology works by employing environmentally responsible sodium chemistry to capture excess energy from the diesel fuel generators. When the generator is off and the battery is fully charged, it feeds the stored power back to the cell tower. This hybrid, cyclic charge/discharge operation reduces fuel consumption by up to 40 per cent. With headquarters in Nairobi, telecommunication, power and ICT service


provider Adrian Company LDT is among GE’s newest Durathon battery customers. Bernard Njoroge, Group Managing Director, Adrian Group of Companies, noted, “Our main challenge is downtime due to frequent power outages on the grid. For our sites located in densely populated areas where wireless signals and data transmission loads are heaviest, the Durathon battery has proven to be the perfect innovation solution for us to implement.” The Durathon battery can help extend mobile phone service to billions of people worldwide by helping generator-powered cell towers operate more efficiently, while also reducing greenhouse gas emissions. With more than one billion people – and potential cell phone subscribers – living in remote areas with no accessible power grid, operators are often forced to continuously power cellular base stations using diesel fuel. This costs an average of $20,000 to $30,000 per site and adds more than 50 tons of carbon dioxide into the atmosphere per year. Megatron Federal, an engineering company based in Johannesburg, South Africa, was the first customer to sign a purchase agreement for 700 batteries in early 2012, adding 300 more shortly thereafter. The company with

Investing in Advanced Manufacturing Solutions


ince July GE Energy Storage’s high-tech battery manufacturing facility has been producing ecomagination-qualified Durathon battery products, following GE’s US$100mn initial investment in battery technology developed at GE’s global research center in Niskayuna, in the USA following its strategic acquisition of UKbased Beta R&D. The Durathon batteries are the result of GE’s investment in research and development that leads to breakthrough products.

African Review of Business and Technology - November 2012

GE’s Durathon sodium batteries—designed for use in telecom, uninterrupted power supply (UPS), and industrial applications—have a longer life, store more energy per unit weight, have improved performance in extreme conditions, and have minimal maintenance costs compared to traditional lead acid batteries

products and services in power generation, transmission, distribution, construction and telecommunications, signed another agreement to purchase 6,000 batteries when GE Energy Storage formally opened the new Schenectady facility. These batteries will ensure the continuous operation of telecom installations in Nigeria. They will also enable Megatron to lower both fuel consumption and emissions of diesel generator powered telecom towers by up to 50 per cent. GE ecomagination Vice President, Mark Vachon said, “It is estimated that the telecom industry accounts for two per cent of the total world carbon footprint and could reach an alarming four per cent by 2020 if solutions aren’t implemented in the near-term. We know that in this current global context, we must stay laser focused on what our customers need to make their operations more productive, resource efficient, and environmentally smart.” GE Energy Storage is experiencing increased demand for the technology with other new orders set to be finalised. By mid2013, GE anticipates having more than 1,000 hybrid telecom installations worldwide and over five times that number by year-end. ■

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Mitsumi IT Distribution heads for GITEX Mitsumi IT Distribution, one of Africa’s largest IT distributors, participated for the first time ever in GITEX Technology Week 2012 - a premier information and communications technology (ICT) event for the Middle East, Africa and South Asia (MEASA) held in midOctober at the Dubai World Trade Centre. Mitsumi exhibited its product portfolio from renowned global vendor partners including HP, Dell, Acer, Toshiba, Lenovo, Samsung, Microsoft, BenQ and Tripplite. With GITEX having an ‘Africa in Focus’ theme this year, Mitsumi benefitted from an increase in the number of delegations from countries expressing interest - including Algeria, Kenya, Libya, Cameroon, Ghana, Morocco, Nigeria, Tanzania, Ethiopia, Uganda and Tunisia. Mitsumi's participation at GITEX 2012 was designed to ensure the company's commitment to showcasing the rich opportunities available in Africa and to cement and further grow its reseller and vendor partner base. Jagat Shah, Chairman & CEO at Mitsumi IT Distribution, has spoken of GITEX Technology

Week as “an excellent platform to showcase Mitsumis Africa operations and consolidate partnerships”. As part of GITEX’s ‘Africa in Focus’ campaign, the GITEX team met representatives from Rwanda, South Sudan, Tanzania and Uganda. While in Nairobi, the team met officials from Kenya’s ICT Board, who are committed to the goal of being among the top 10 ICT hubs in the world. Kenya’s national ICT Master Plan, an initiative by the Ministry of Information and Communication, aims to drive aggressive growth in the ICT sector by 2017, contributing 25 per cent to the country’s GDP. Mitsumi IT Distribution has an early-mover advantage in Africa since the company was the first to establish a chain of in-country presence in these markets ranging from

facilities like warehousing, stocking points and support service centres in 1996. Mitsumi has Sales offices in Kenya, Tanzania, Ethiopia, Uganda, Rwanda, DRC, South Sudan, Nigeria, Ghana, Ivory Coast, Benin, Algeria, Tunisia, Morocco, Mozambique, Zambia, Namibia, Mauritius and Madagascar which adds up to 15 Warehouses and 8 Service Centres, thereby, making it the only truly ‘Africa Centric IT Distributor’ guaranteeing maximum reach to all global IT vendors.

Mr Jagat Shah, Chairman & CEO at Mitsumi IT Distribution Africa

African Review of Business and Technology - November 2012


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Wireless networking to watch over assets Wireless communications solutions for secure, high-bandwidth, long-range transmission of CCTV video, data and voice


he applications for wireless-based video security networks are coming under renewed scrutiny as the public sector faces increasing government pressure to cut costs whilst maintaining service levels. It is a fact that, when implemented correctly, it is virtually impossible to detect any difference in performance between fibre and line-of-sight wireless-based video networks. Point-to-point and point-to-multipoint wireless links can deliver similar performance to fibre, producing low levels of latency and high image quality, but at a significantly lower cost, whether used as standalone networks, extending the range of existing fibre networks or used to rapidly deploy temporary communications links for covert or overt operations. Making a difference in the market A key difference between suppliers to look for is a range of products that have been designed specifically for video transmission and feature the performance necessary to deliver video images at rates of up to 25fps and latency of less than 3ms at ranges of up to 40km. An example of such a portfolio is that provided by Wavesight, which boasts of a comprehensive range of transceiver solutions that enable high quality images to be received from remote locations where traditional cabling is either not practical or simply uneconomic. This is something that cannot be reliably achieved with the voice and data based products that have commonly been deployed in an attempt to run bandwidth hungry video applications. Such systems also meet all relevant international standards for outdoor use, including IP67 industrial protection, and are regularly specified for diverse environments around the world. Installation is another area where systems may be be distinguished, with an ideal being a process that is quick and easy without requiring the high levels of technical expertise needed to work with alternative voice and data-based products. Wavesight, for example, provides installers with full training and specific tools - such as its RFAnalyser to optimise the configuration and management processes. Effective installation requires proven experience with many successful deployments in a wide range of environments, exceeding client expectations in every installation whether a complete solution or integrated with licensed and COFDM product technologies. Helpful, also, is a competitive pricing strategy and a straightforward and pragmatic approach to doing business. This is no mean feat in the current challenging financial climate. Significant cost savings As well as delivering comparable performance to fibre networks and leased lines, Wavesight systems can enable organisations to install or expand video security networks at a fraction of the cost of


African Review of Business and Technology - November 2012

Companies such as Wavesight enable superiror transmission of CCTV signals

traditional systems. The market is already changing, and where wireless was once seen as being only suitable as an extension to fibre, it is now commonly being specified to replace fibre. At just 1520 per cent of the cost, organisations are achieving a return on investment in as little as 24 months whilst eliminating the high ongoing costs required for fibre or leased lines will deliver further significant savings over the same period. Of course, these may not be the most important issues in African economies, as the economics and practicality of installing fibrebased networks is simply not viable, particularly when there is no visible difference in terms of performance. With proper network planning and construction, however, wireless is suitable for all but the very largest scale communications networks - and, considering the cost and reliability advantages of wireless, why would they even consider the alternatives? â&#x2013; 

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How Subsea 7 will serve Total in Angola A look at the Seven Borealis – a unique pipelay/heavylift vessel owned and operated by Subsea 7, and scheduled to serve Total at the Angola CLOV oil & gas project


ubsea 7 counts among its assets the Seven Borealis – a pipelay/heavylift vessel scheduled to serve Total at the Angola CLOV project A recent tour of the Borealis reaffirmed Subsea 7's emphasis on safety, efficiency and effectiveness. The vessel is highly capable, and its crew are trained and supported in maintaining a strict regime of secure, systematic operation. The vessel's capabilities and equipment are extensive, too. Observe that it has its own cargo barge, to supply the vessel. See that its towers can be mobilised at each location. Understand that the main line of the S-lay system can be adjusted to suit any configuration, any process - to accommodate any client requirements. Most recently, the Seven Borealis has been sited in Schiedam, in the Netherlands, at Huisman's facility, where outfitting has been completed before mobilisation to West Africa. A global enterprise offering extensive experience in the design and manufacture of heavy construction equipment for on and offshore companies, Huisman has prepared the Seven Borealis to handle a pipe every three minutes. More equipment for better pipelay There is more to be learnt about the vessel's capabilities. The Seven Borealis is equipped with an S-lay system to lay pipe with outside diametres from 11cm to 117 cm. For laying pipe in extreme deep water, the J-Lay tower, positioned starboard, can be used and can lay pipe with outside diametres from 10cm to 61cm in water depths of up to 3,000 metres. There is a 600-ton abandonment recovery winch, and a 200-ton winch, both for S-lay. There is a large red structure within the firing line - a diverter sheath, which folds down to allow the winch wire to be deployed over the starboard side of the vessel. There is a 360-ton winch for Jlay operations. There are, also, selected small


winches for specialist operations. There are three 200 tonne S-lay tensioners - which consist of an upper track, a lower track and supporting equipment. These are rail-mounted, and ensure accurate load measurement. The Seven Borealis firing line features, also, a window large enough to accommodate in-line structures - T pieces, for example - after welding. Focusing further on the vessel's heavy equipment, Mr Gilbert showed the 5000 tonne rotary crane. The crane was tested at 55000 tonnes, said Mr Gilbert, "and didn't even flinch”. The main crane incorporates a deepwater lowering system. This heave compensated system can accommodate 6000m of 109mm diametre wire and can work in single, double or four fall. Just as impressive, note here that the J-lay can turn to any angle, so that it can operate independently of the ship's own direction. Note, also, that the three-

African Review of Business and Technology - November 2012

section stinger can be configured to suit specific operations. It can, in fact, create a pipe radius from 70 to 300 metres. “The stinger on the Borealis is up there with one of the biggest around," said Simon Gilbert, an offshore manager at Subsea 7. Mr Gilbert manages operational matters, from crane management to pipe handling and deployment. Speaking, recently, on the deck of the Borealis, Mr Gilbert also highlighted the vessel's "world-class ROVs" - remotely operated vehicles, both of which are controlled from one control room. Additionally, the Seven Borealis has its own gas systems producing oxygen and acetylene. The commercial partnership ensuring safe and secure operation here is the technology firm iGas, which was chosen by Subsea7 due to its experience in delivering gas supply and distribution projects throughout Europe and beyond - utilising cost-effective and advanced

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Evidence of advanced administration Inside the administrative bowels of the Seven Borealis, the software underpinning the ROVs is developed by Schilling Robotics, a company that brings 25 years of technological expertise to the challenges facing customers in the subsea environment. With Schilling's support, Subsea 7 designed the ROV control station in-house to exceed the concept of "fit-for-purpose" – in Simon Gilbert's words - offering capabilities that not a lot of comparable vessels have. Development of the ROV control stations may be associated with development of a paperless system for task planning. This is a technologically advanced vessel, not just in terms of its ability to deliver flexlay capabilities, but also in terms of administrative functionality. Within the Seven Borealis, one sees the deployment of an integrated system of software, hardware and defined processes to manage information through creation, capture, storage, retrieval, distribution and retention. Looking across the navigation bridge, one can affirm that there are no paper charts - it is all electronic, and with comprehensive use of GPS systems. Looking, then, for a practical example in internal and external communications, one can observe that the Seven Borealis is fitted with Cisco IP phone equipment.

A few steps away from the navigation bridge, there is evidence on the chief officer's desk on the working bridge, in the form of a Cisco IP Phone 7962G – a capable, high-end unified communications device designed to meet the needs of managers and administrative assistants. With programmable buttons and interactive soft keys applicable to all call features and functions, this hands-free speakerphone and handset offers hi-fidelity wideband audio, and features a built-in headset connection and an integrated Ethernet switch, representing a sound choice of communications hardware - user-friendly and one of the easiest phones to use, offering

stable IP telephony (obviously, depending on the capacity and stability of data connection). Observe that even a detail such as choice of phone indicates in keeping with Subsea 7's emphasis on effective, efficient operation. ■

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technology and design. Last to see externally, sited high on the vessel, the heli-deck is notable as the largest offshore heli-deck in production, capable of landing the largest offshore helicopters.


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African Review of Business and Technology - November 2012


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Eskom extends its green credentials How projects underway and in prospect are changing to South Africa’s power production profile


yanda Nakedi has nearly two decades of experience with Eskom. She has held various positions within the South African energy enterprise - encompassing engagement in sales and customer services, distribution, to working as CEO of Eskom Development Foundation, to the role of general manager of strategy, technology and assurance at the company’s Generation Division. For most of 2011, and for all of 2012, she has acted as senior seneral manager at Eskom’s Renewables Business Unit, setting up the unit and implementing the utility-scale projects. Renewables fall well within her expertise. Ms Nakedi is a board member of South African Wind Energy Association. She is, also, chairperson of the Southern Africa Solar Thermal and Electricity Association (SASTELA). The Eskom Renewables Business Unit centralises and develops the utility’s renewable energy projects. These are: ● A 100 megawatt (MW) Concentrated Solar Power plant with between nine and 12 hours of storage, scheduled for construction on the outskirts of Upington in the Northern Cape. ● A 100MW wind farm near Vredendal in the Western Cape. ● Installation of up to 150MWp of solar photovoltaic electricity at Eskom’s head office in Sandton and at various Eskom sites around South Africa. Embracing CSP According to Ms Nakedi, says Eskom plans to start construction of a concentrated solar power (CSP) plant in late 2014 and commission the facility by end-2016. She estimates the 100MW plant will generate the amount of electricity required to run 400,000 standard homes. “CSP with storage can go a long way to addressing our country’s peak demand,” she says. “We need to embrace CSP and allocate it a greater role in our energy mix.” Eskom’s participation in renewable energy


The Klipheuwel Wind Energy Facility (Photo: Warren Rohner)

development, she adds, will help to create demand and stimulate development of local industry and job creation. Eskom is also strengthening transmission lines in the Northern Cape to ensure that CSP plants being developed by the public and private sectors can deliver their electricity to the national grid. A display of green credentials Ms Nakedi recently attended and spoke at Clean Power Africa in Cape Town, which welcomed some 600 local and international renewable energy experts, to focus on new opportunities in the hydropower and solar energy industries. As South Africa’s Energy Minister Elizabeth Dipuo Peters addressed delegates, Cape Town’s mayor Patricia de Lille said, “Sustainable sources of energy are essential to the future of Cape Town, as it is to all major cities throughout the world. In Cape Town we have to seek a delicate balance between the need to provide access to electricity for citizens, and that of constantly finding mechanisms to promote the use of efficient and diverse sources of sustainable energy. It is therefore apt that the Clean

African Review of Business and Technology - November 2012

Power Africa conference will see energy experts meet under one roof to discuss the best ways to ensure sustainable energy for all of Africa, which in turn can contribute to economic and social development.” In addition to Ms Nakedi, speakers at this event included: Councillor Xanthea Limberg, Chairperson: Energy and Climate Change Committee, City of Cape Town; Nelisiwe Magubane, Director General, Department of Energy, South Africa; Garth Aspeling, Mechatronic Engineer, Water and Sanitation Department, Utility Services Directorate, City of Cape Town; Mlamli Mabulu, Mechatronic Engineer, Water and Sanitation Department, Utility Services Directorate, City of Cape Town; Tinus Keyser. Chief Engineer and Turbine System Engineering Manager, Eskom Peaking Generation, Cape Town; and Christine Wörlen, Independent International Renewable Energy Expert, Germany. Delegates at Clean Power Africa were also afforded the opportunity to see renewable energy in action in the Western Cape, at the Steenbras Pumped Storage Scheme, the Klipheuwel Wind Energy Facility, and the Aquila CPV solar demonstration plant. ■

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African Review of Business and Technology - November 2012


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Possibilities for power W

ärtsilä Corporation has been developing scenario-based perspectives on the future of energy and renewables for a couple of years - based on three alternative futures regarding electricity production and use. The differences in the three scenarios revolve around the issue of power – not only in terms of energy, but also influence. The questions Wärtsilä asks are: who has it, why and what are its effects? Ole Johannsson, former president and CEO of Wärtsilä Corporation, stresses that two major challenges shape the economic, social and environmental agenda today. He observes, “On the one hand we have to produce enough electricity to improve the living standards of a growing population. On the other hand, we must curb climate change. The power sector has a key role to play in this, while facing the additional challenge of limited fossil fuel reserves.” The Intergovernmental Panel on Climate Change reports that energy Ole Johansson, former president and CEO, Wärtsilä Corporation infrastructure investments are expected

to exceed US$20.0 trillion by 2030, if the world is to meet requirements for power. The International Energy Agency notes that necessary investment in the power sector represents US$13.6 trillion - of which power generation accounts for half, with transmission and distribution making up the other half. Mr Johannsson observes, “These issues are more than relevant for Wärtsilä. As a provider Wärtsilä’s energy perspectives have already influenced the development of of complete lifecycle power products -such as this 50DF tri-fuel solutions for our customers, we medium-speed engine (Photo: Mercator Media) need to make the right decisions regarding long-term product development in order to be the preferred partner for future investments. At the same time we must do our share in solving climate and energy challenges.” ■

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African Review of Business and Technology - November 2012

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Hydro on the horizon P

ower and automation technology group ABB recently secured an order worth around US$50mn from Hidroeléctrica de Cahora Bassa, SA to refurbish the Songo highvoltage direct current (HVDC) converter station in Mozambique. The converter station and associated high-power equipment are key components in the 1,920 MW HVDC link transmitting clean hydropower from the Cahora Bassa hydro plant in Mozambique over 1,417km to South Africa, where coal-based thermal power is the main source of electricity. Refurbishing and replacing The proj ect entails replacement of key equipment, including high-voltage transformers and direct current (DC) smoothing reactors. It will help to enhance power availability and improve system reliability, enabling HCB to honour its Power Purchase Agreement with Eskom, the South

are delighted to contribute to the development of power infrastructure in the region,” said Brice Koch, head of ABB's Power Systems division. “This project also underlines our continued focus and commitment to growing our service business.”

African utility. Export of renewable energy to South Africa, is an important source of income for Mozambique. ABB will also supply and install arresters and measuring equipment as part of the project. The commissioning will be completed in two parts - the DC equipment in 2013 and the transformers a year later. “The Songo HVDC link supports the integration of renewable energy and helps meet the growing demand for electricity. We

African growth ahead According to the International Energy Agency (IEA) power consumption is set to double between 2005 and 2040. ABB has more than 5,000 employees in Africa and expects to grow at least twice the rate of GDP growth between 2011-2015 driven by the power, mining, oil & gas industry and housing sectors. ABB’s commitment builds on its innovation in HVDC transmission technology, which stretches back almost 60 years. The company has extensive experience in both new installations and refurbishments, with over 70 HVDC projects around the world. ■

WHEN YOUR MISSION IS MAKING MEDICINES THAT SAVE LIVES, FAILURE’S NOT AN OPTION. ESPECIALLY POWER FAILURE. Tests are performed, results compiled and production lines roll. Every day, a leading U.S. pharmaceuticals innovator makes the products that treat serious and life-threatening medical conditions. Loss of power for even a short time could cost a production run … and hope for those who need help now. For the health of this company and its customers, KOHLER backup power solutions are the best medicine. With KOHLER, the power stays on because the people behind the products are on. Always. You can’t make breakthroughs in medicine if you’ve got breakdowns in power. Which is why so many people trust KOHLER to come through. Without fail.

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African Review of Business and Technology - November 2012


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Power-Gen Africa

Bringing global energy expertise to Africa Energy industry professionals network and share knowledge at the first Power-Gen Africa conference and exhibition


ower professionals are preparing to connect. The inaugural Power-Gen Africa and the co-located Renewable Energy World Africa events will be held in Johannesburg, South Africa, on 6-8 November 2012. Nigel Blackaby, Conference Director for PennWell's International Power Group, says that the three conference tracks at this inaugural event have been developed in order to address the information requirements of stakeholders in sub-Saharan Africa's power generation industry. The conference tracks cover strategic concerns and technology issues, and will be associated with renewables at the Renewable Energy World Africa event.

The Strategic Track address topics including: Energy Security. ● Power Sector Regulation. ● Financing Power Developments. ● Investment Risk Mitigation. ● Planning & Operational Challenges. ● Industrial Power Generation. ● Capacity Building, Skills & Training. ● The Challenge of Rural Electrification. ●

Topics on the Technology Track agenda include: Steam Technology. ● Gas Turbine Technology. ● Flexible Power Generation. ● Fuel Quality Issues. ● Operations & Maintenance. ● Emissions Control. ● Lifetime Extensions and Retrofits. ● Performance Optimisation. ●

The Renewable Track brings attention to: ● Renewable Energy Policies for Sustainable African Development. ● Wind Project Development. ● The Future for Hydropower. ● Geothermal Energy. ● Opportunities Arising from Hydro Rehabilitation, Modernisation and Upgrade. ● Bioenergy Development – Domestic, Commercial & Industrial.


Rural Electrification from Renewable Sources. Creating and Maintaining a Strong Solar Industry in Africa.

Developing skills at the conference Blackaby confirms, also, that the Power-Gen Africa conference has gained support from the South Africa Institute of Electrical Engineers (SAIEE), in the form of credits that can be turned into opportunities for engineers to further their professional education whilst networking with their peers. He says, "The energy challenges in SubSaharan Africa are many and they impact seriously on the overall performance of the region's social and economic indicators. Improving the added value of African products will require modern energy provision for manufacturing, processing, storage and transportation. Energy is also needed for the development of small-scale enterprises, which can contribute to the region's economic survival and growth. Power-Gen Africa and Renewable Energy World Africa will look closely at how this can be achieved." Key exhibitors in the power sector The exhibition runs parallel to the conference. Blackaby notes, "The exhibition offers a unique opportunity for African power industry players to meet their international counterparts, to explore, research, engage, discuss and debate as well as to source and view new technologies, products and services from around the world." The exhibition has attracted exhibitors from more than 20 countries, including international firms such as: ● Ansaldo Energia of Italy. ● Pratt & Whitney of the USA. ● Siemens of Germany. ● Tiveni of India. ● Wartsila of Finland. ● WorleyParsons of Bulgaria and England. ● Andritz Hydro of Austria.

African Review of Business and Technology - November 2012

Both global and local Participating as an exhibitor is expected to reap rewards for local companies, which will have the opportunity to demonstrate a competitive edge to influential decisionmakers, to promote new technologies, products and services, and to generate sales leads - and explore business opportunities. The key driver for small firms is to meet new partners in dynamic surroundings, to enahce commercial prospects. And the potential is apparent. Says Blackaby, "SubSaharan Africa consumes just 2.7 per cent of world commercial primary energy. In terms of electrical energy use. The gap is even more glaring with per-capita electricity consumption in many Sub-Saharan African countries at the rate of 1/100th that of the USA. Africa's potential as a growing economic force is dependent upon adequate power supplies and the opportunities for developing the required infrastructure are considerable. ■

A key provider of power solutions Aggreko hires out gas and diesel generators, load banks, heaters, air conditioners and chillers. Aggreko equipment is used in a wide variety of settings including power stations, mines, offshore oil platforms, shipyards, construction and contracting facilities - and high-demand power applications related to emergency response and disaster management. Operating out of Dubai, in the UAE, Aggreko's Global Projects business, can ship powerplants - capable of powering entire cities - to anywhere in the world, making them operational within days of reaching the destination.

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Your Partner... ...For Power

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S11 ATR Nov 2012 Construction 01_Layout 1 18/10/2012 15:54 Page 52


used Equipment

Better buying of building machines O

utside Europe, where the market remains slow, construction machinery dealers are generally reporting lively sales of used (secondhand) contractors’ plant of all types. Conditions here in Africa are particularly buoyant, a perennial problem locally being a general shortage of good quality used plant – especially machines bearing the best-known traditional brand names like Caterpillar, Komatsu and Volvo CE.The obvious reason is that new plant is so very costly these days, and going up all the time as contractors invest in the latest plant which offers maximum productivity at lowest cost in terms of fuel and maintenance. All reflected in the healthy bottom lines of the world’s major manufacturers, of course. A good used machine of reasonably recent date can usually be acquired locally for a price somewhere in the one-half to two-thirds cost of a new machine. Major one-brand distributors will often exceed this for their best offerings, because the demand is so strong and it takes so long to ship in a new customised machine from overseas. Primary sales by good traders Check on the website of the sort of manufacturer you would like to support and you will find that most encourage used-equipment sales – and often specifically in your own country too. With the backing of local distributors (who usually try to offer a full range of machines) they do this because it props up their sales of new equipment so well; primary buyers are much easier to encourage to acquire at the full price if they know there will be a good tradein return to be relied on when the user moves on. And they are encouraged to keep their plant in good order too. Of course, these primary sellers invariably check over and put right the machines they sell on in this way, but at a price. They have

to do this to support both their own reputation and that of the brand(s) they deal in. The consequence of this is that in order to get the very best deal building and mining contractors in Africa usually have to use their own initiative and strike out by arranging a good ‘find’ and subsequent purchase on their own. Probably, the best way to do this is to rely on the local network of business operators; active membership of your local Chamber of Commerce is a major advantage. The best opportunities are to be found in ‘fire sales’ – a local rival has gone out of business for some reason and the liquidators have to raise as much cash to pay off the debts as possible, and quickly too. Being first on the scene at such an occasion is a very handy position to be in, especially if you have cash or a pre-arranged finance package available. A cellphone really comes into its own at such a time as this. Failing that you’ll have to visit your local distributors, who will almost invariably be able to supply a top-grade item. But they will may charge a hefty premium for this service. Pointers on price Failing that you might have to use the international auction route. The best known entry to this is provided by the Ritchie Brothers website which will tell you where the next nearby event this enterprising business will be arranging (often handily nearby in the Gulf ) will be held, and also some price indications from recent events. But these are only pointers as the price realised will very much reflect the conditions prevailing in the probably far-distant country concerned. Add on the costs of shipping a single heavy machine like a digger or wheel loader to Africa and the delivered cost will be much higher still. And even more so if it has to be moved up country. ■

World summit for used technology in 2013

World Trade Fair for Used Technology 22 – 24 April 2013 Cologne, Germany Organisers: Koelnmesse GmbH and Hess GmbH · Technical Sponsor: FDM e.V. Registration and information: Tel. +49 7244 7075-0 ·

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Robust tile, block and cladding machinery from Vortex Hydra Requiring only local raw materials and minimum energy expenditure the range of highquality building materials that can be produced from this established Italian company’s purpose-built machinery is impressive


dvanced concrete roof tile-making machinery from Vortex Hydra S.r.l. of Italy’s Fossalta di Copparo* is operational in almost every country in Africa. Applications include durable high-quality coloured roofing, floor and wall cladding materials. The company also supplies machinery for the manufacture of small-medium scale concrete blocks and paviors manufacture (6-8cm thickness) for outdoor use. In business for more than 40 years this Ferrara-based company is an acknowledged world leader in such automated buildingmaterials equipment which is all based on a proven high-pressure extrusion process. “Concrete tiles are a fine roofing product,” the company says, pointing out that roof tile manufacturing in particular presents a splendid business opportunity throughout Africa. Using local available raw materials such a cement, sand and water many of the company’s clientele have been able to set up viable

In countries such as South Africa roof tiles are not only produced by large national companies using Vortex fully automatic high volume production plants but are also manufactured in rural areas by small family concerns and entrepreneurs


“UNO plants are unique because they enable customers to manufacture many types of building products, in addition to that of roof tiles” businesses to meet the local demands for better quality housing. “Our mission is to create a partnership relation with our customers, offering equipment that is simple to operate and maintain.” Multiple tile profiles and surface finishes are available and are processed with minimum energy consumption, with plant output levels ranging from 1,000 up to 50,000 pieces per shift according to the production system chosen: ‘Uno’, ‘Modulo’, ‘Rotary’ or ‘Matrix’. In countries such as South Africa roof tiles are not only produced by large national companies using Vortex fully automatic high volume production plants but are also manufactured in rural areas by small family concerns and entrepreneurs who set up in the industry with one of the small lower output affordable UNO type plants. The UNO plants that offer selection from 1,00016,000 tiles per shift range of plants have been successfully designed to be both reliable and easy to use in both operation and maintenance. Throughout Africa the low-medium output UNO start up size plants are extremely popular. A big advantage with the new Uno Evoluzione type plant is that a customer can start with a small plant and add components to it at some future date enabling an increased output to be achieved as his product sales expand in his local market. Another attraction is that the UNO plants are unique in as much as it possible for a customer to manufacture other types of building products with the machine in addition to that of

African Review of Business and Technology - November 2012

roof tiles. This enables a customer to be able to broaden his building product base in the local market. Such additional products include concrete wall and floor décor tiles, brick facings, stone wall cladding, coping stones and Marmoroc exterior building cladding components. Training, assistance with installation and commissioning, full customer technical service and after-sales support is available on all products. Plants for the production of concrete blocks and paviors are also popular throughout Africa. All these high-quality building products that can be profitably manufactured locally are based on the use of robust metal (aluminium) moulds and shaping heads, producing a very strong construction material that offers sharp and precise definition and can be cut to size as required. Whatever the colour chosen the normal initial curing period for these concrete products is 24 hours, but under forced warm air heating conditions this can be reduced to just seven or eight enabling a plant to operate on a double shift basis. A further period for outdoor natural hardening is recommended before the tiles are applied to a building. The standard concrete blocks and paviors that can be produced by Vortex Hydra’s related high pressure vibration process require only suitable dry sand, cement and water to complete and distribute to your customers. ■


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Consulting at the forefront of construction P

rofessional consulting engineering company Vela VKE, which recently became a part of the SMEC Group following the June 2012 merger with the global engineering consultancy firm, is currently involved in a number of high-profile geotechnical construction projects across South Africa. Vela VKE (part of the SMEC Group) head of geotechnical section Fernando Pequenino points out that the Pretoria-based team offers a full range of geotechnical services covering conceptualisation, planning, investigation, design and construction. “The expertise available within the section is far reaching and includes services relating to commercial, industrial and residential

Fernando Pequenino of Vela VKE

developments, earth dams, earthworks, slope stability, bridges, viaducts and tunnels.” The geotechnical team is working on the N2/26 freeway expansion project for the South African National Roads Agency SOC Limited (SANRAL) Eastern Region - on the widening of the tolled section of the N2 from the Umdloti Interchange to Tongaat Plaza in Kwa-Zulu Natal. “A significant feature of the project is the widening of the 250-m-long Umdloti River viaducts using the incremental launch method (ILM), which involves the prefabrication of the units of the bridge under factory conditions behind the abutment, before launching it by sliding it on Teflon bearings into the final position without the aid of scaffolding.”


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African Review of Business and Technology - November 2012

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Rehabilitation of sinkhole on N14 near Jean Avenue

Piling work being carried out at the N2-26 Project in KZN 2

Pequenino notes that the geotechnical section undertook a detailed investigation along the route during the latter half of 2010. “The viaducts are being founded using large diameter, end-bearing oscillator pile foundations to depths of over 40 m. The deep piles resulted from the viaducts being situated on a deeply incised paleo channel, which was filled with compressible alluvial sediments. As part the design team, the geotechnical section was involved in ensuring that the new piles would be able to accommodate the loads within acceptable deformation criteria as a result of a new deeper deck section design.” A second component of this project for SANRAL is the upgrading of the Mount Edgecombe Interchange along the N2

Proposed N2 Mt Edgecombe Interchange

freeway in Kwa-Zulu Natal, which is set to become one of the largest interchanges in South Africa when it is fully-constructed. “Piled foundations in the form of large diameter screwed-in-casing friction auger piles, that are 35 m long, are proposed for two viaducts of 443 m and 947 m length at the four-level Mount Edgecombe Interchange,” Pequenino continues. “The geotechnical team has been integrally involved in the scheme development where traffic, geometric, structural and geotechnical constraints were considered in an effective interchange layout, where constructability and ground conditions were key to the final layout selected. This project is presently out on tender, and construction work is expected to begin in the first quarter of 2013.”

Pequenino notes that the geotechnical section was commissioned in May 2012 to rehabilitate a subsidence which formed in the slow lane of the northbound carriageway of the R21 freeway near the Olifantsfontein Interchange in Centurion. The rehabilitation involves the construction of a stiff stone column and rock layer, which is integrated with a high strength geotextile installed below the roadway. This aspect of the project was particularly challenging. Pequenino says, “The stone columns were installed by driving the stone into the ground by dropping a large weight from a considerable height. The capping layer which is formed in this manner reduces the settlement potential, while partially arching over the poorer in situ soils.” ■



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African Review of Business and Technology - November 2012


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Exploiting knowledge to build routes to success Insights into corporate thinking on techniques and equipment for East African road construction


antrac Kenya Ltd’s commitment to the construction industry is wellknown. As the authorised dealer for Caterpillar Worldwide (Caterpillar –which is guided by the motto Paving All day, Every Day), Mantrac exploits its pool of knowledge in its 11 territories by applying its group strategy of sharing knowledge, experiences and successes with customers as it also forges ahead with them. Among its strengths include excellent and exceptional after-sales service, great support from partners such as Caterpillar (this has brought it great success) and commitment to support local clientele in its different areas of operations. In particular, the group in Kenya has invested in spare parts worth over Ksh400mn and unit stocks all worth billion of shillings. Equipment sold Caterpillar road construction equipment sold by Mantrac includes Motor Graders (the 140K series); D6R and D7R Track-Type Tractor; 320D L Hydraulic Excavators (for Africa and the Middle East); 329D L and 329 LN Hydraulic Excavators and the 950H Wheel Loader. Caterpillar’s paving product line shows products that include Smooth Drum Vibratory Soil Compactors, Padfoot Drum Vibratory Soil Compactors, Track Pavers, Wheeled Pavers, Vibratory Screeds, Vibratory and Temper Bar Screeds Utility Compactors, tandem Vibratory Rollers, Pneumatic Compactors, Reclaimers/Stabilisers/Rotary Mixers and Cold Planers. The Cat pavers and Screed Solutions catalogue is elaborate on features and specifications including on material delivery, operating environment and controls, wheel undercarriage, Mobil-Trac undercarriage and the AP Paver series. Screed features and specifications are also highlighted including electric screed heat, tamper screed features, Cat Grade and Slope and the AS Screed series. Information on sustainability, product link, service and support is also included.


On Caterpillar earthmoving and excavation equipment, one understands that before paving can be done, the site needs to be prepared which motor graders do effectively. All new Caterpillar equipment used for roadbuilding in East Africa utilises the ACERT Engineering (the advanced combination of emission reducing technology) system that reduces fuel consumption and increase power and productivity of the equipment. The equipment power train is also eased by the electronic clutch press control (ECPC). The undercarriage of the medium track-type is very vital for operations and costs about 50 per cent of the total cost of the equipment; the fuel and engine compartments are now partitioned from the cooling(radiator compartment) to reduce cooling requirements and to enhance engine efficiency. Equipment and machineries management Victory Contractor has expressed concern over widespread theft of fuel from road construction equipment and machinery generated quite some interest. Mantrac’s management has explained that concern over this issue has persistently been raised by other customers, too. Today, Caterpillar is fitting (on request) a product-link that operates akin to a CCTV device. Linked to a computer at the client’s chosen point, it has an alarm and machine-shut down system and is a reliable means of monitoring how the equipment or machine is being used. The GSM equipment incorporates a fuel loss alert that uses the SMS system to alert owners, on cell phone, of sudden massive fuel loss. The device is linked to Mantrac’s service dept and can locate the equipment on site; it is able to identify maintenance alarms and can easily identify cause of equipment breakdown on site. Its additional features are its ability to monitor fuel usage by recording working uptime and idle time. Nevertheless, customers expressed concern that fraudsters often overtake technology

African Review of Business and Technology - November 2012

and insisted that anti-theft research endeavours for equipment continue; this should include development of a special fuel for heavy equipment and machineries not readily saleable to normal traffic. One considers that the longevity and reliability of road surfaces depends on how its various layers are constructed. Aspects such as asphalt provisioning, loading, paving and compaction also impact the life. The road surface layers start at the lowest level with the sub-grade, embankment fill, aggregate base, binder course, intermediary course and the friction or wear layer which is the last course on which traffic moves. Mantrac stocks, also, Caterpillar equipment for base preparation, paving and maintenance and rehabilitation; 25 per cent of Mantrac’s equipment (about 75 models) are for paving purposes. The pavers comprise tractors and screed: the screeds lay asphalt mix with predetermined width (2.5 to 8 metre), thickness and specific profile. The paver can be on either wheels or tracks; the tracks could also be either rubber or steel. Small asphalt pavers are also on wheels or tracks. Caterpillar manufactures pneumatic compactors for paving both roads and soil grounds in other applications. Soils compactors (including the padfoot drum and padfoot shell) use the vibratory smooth drum that utilises the Caterpillar dual pump propels system. Other equipment mentioned in the presentation include cold planners such as the mill and fill that remove damaged outer road surfaces; recyclers and stabilisers that can also be used in agriculture for ground preparation (soil stabilisation) to prevent soil erosion and for fertiliser application. To achieve good roads, one needs stabilisers, graders and compactors. Among others, Caterpillar is now making weilers for road widening and transfer of road manufacturing vehicles among other purposes. ■ Fred Ndung'u Ng'ang'a

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S12 ATR Nov 2012 Construction 02_Layout 1 18/10/2012 15:56 Page 60



Cementing customer satisfaction in SA South African cement manufacturing at PPC Cement is more efficient and creates enhanced customer satisfaction levels by using Hyster forklift trucks with specialist double pallet handling attachments


PC Cement manufacturing plant in Dwaalboom, Limpopo Province, South Africa, loads an average of 2,600 bags or 130,000 kg of palletised dry cement per hour for customers throughout South Africa and in neighbouring countries. The operation is high-pressure, with a required truck loading turnaround time of just 30 minutes. In order to keep up with the time sensitive and demanding operation, tough and dependable Hyster Fortens diesel forklifts were specified to operate three eight-hour shifts per day during the week and one shift per day over weekends. Tough and reliable Hyster is a global brand in materials handling equipment, offering over 140 models of counterbalance trucks, warehouse and container handling equipment. The company invests heavily in research and development to ensure its products are at the forefront of the materials handling industry, providing dependability and low cost of ownership for demanding operations everywhere. The Hyster Fortens H3.5 FT and H7.0 FT are designed to be highly productive even in harsh and demanding operating environments. The seven-tonne lift capacity machines are able to handle a couple of twotonne pallets at a time, reducing the time required to load a 40-ton truck to approximately ten minutes and are also used to load trains transporting cement further afield. In fact, both the Fortens H3.5 FT and H7.0 FT are available in several configurations - as Fortens, Fortens Advance or Fortens Advance+ configurations, with Diesel or LPG engines, either 2-speed Electronic Powershift or 3-speed DuraMatch transmissions (depending on the

Tough Hyster trucks for PPC Cement South Africa 1

model and configuraion) as well as advanced hydraulic and cooling system options, for performance optimised for a range of applications. The equipment is reliable and well-suited to time sensitive operation, providing maximum productivity and minimum downtime. It is supported by a fleet management system and provided on a full service maintenance contract, including an on-site technician. Due to the siteâ&#x20AC;&#x2122;s remote location, standby machines have also been provided and forklift availability has increased to 99 per cent. The fleet management system fitted to the Hyster fleet has helped to reduce turnaround time in the warehouse, raising customer satisfaction levels and has heightened the level of driver accountability, which also helps the drivers to be more efficient. â&#x2013; 

Tough Hyster trucks for PPC Cement South Africa 2

Tough Hyster trucks for PPC Cement South Africa 3


African Review of Business and Technology - November 2012

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Taking on tantalum How market conditions, commercial relationships and the introduction of new technologies are affecting the artisanal mining for tantalum in the Democratic Republic of the Congo


VX Corporation, a manufacturer and supplier of electronic components, recently produced the world’s first capacitors containing validated conflict-free tantalum from the Democratic Republic of Congo (DRC). The capacitors have been shipped to US communications and electronics company, Motorola Solutions in April. This arrangement was made possible by the commitment of both companies to the Solutions for Hope (SfH) initiative, which aims to see the DRC become a reliable and sustainable source of conflict-free tantalum. Tantalum is a rare, hard, blue-grey, lustrous transition metal that is highly corrosion resistant. It is part of the refractory metals group, which are widely used as minor component in alloys. The chemical inertness of tantalum makes it a valuable substance for laboratory equipment and a substitute for platinum, but its main use today is in tantalum capacitors in electronic

equipment such as mobile phones, DVD players, video game systems and computers. Tantalum, always together with the chemically similar niobium, occurs in the minerals tantalite, columbite and coltan (a mix of columbite and tantalite). Concerns about cash from DRC tantalum flowing to armed conflict groups resulted in a number of unintended consequences. Companies responded by implementing selfimposed bans on tantalum from the region, which caused massive job losses for the Congolese whose lives were supported by the industry. Further, a massive amount of resources sat by as consumers attempted to manage rapidly-escalating tantalum prices. In July 2011 Motorola Solution launched the Solutions for Hope Project as a pilot initiative to source conflict-free tantalum from DRC. AVX announced that it would be a partner. To ensure that supplies remain conflict-free from mine to finished product, a

pipeline was established whereby tantalum is obtained from specific mining concessions in North Katanga. The rights to that land are owned by Mining Mineral Resources (MMR). A mining co-operative called Cooperative Des Artisanaux Miniers du Congo (CDMC), has been contracted to manage the artisanal miners at the site. In a semi-mechanised operation, MMR removes the overburden and artisanal miners remove the underlying tantalum, which is collected, weighed, and logged. This process is widely referred to throughout the industry as a ‘bag and tag scheme.’ The tantalum is then transported to a depot in Kalemie, DRC where AVX pays market price for it and exports the ore to Johannesburg, South Africa. From there, the tantalum goes to China’s F&X Electro-Materials, a certified smelter. It is converted into wire or powder and then shipped to AVX’s Czech Republic facility, where capacitors are made. After

Doosan wheels out new loaders A new range of Doosan wheel loaders has been launched for markets in the Middle East and Africa. Building on the design of the previous Mega range, the new Doosan DL250A, DL300A and DL420A wheel loaders offer several improvements for better performance, greater operator comfort, easier handling and serviceability, as well as increased durability.

L3085 version II axle in the front and the MT-L3075 II axle at the rear. The MT-L3085 II is used for the rear axle on the DL300A with the ZF MT-L3095 II axle on the front. Hydraulics and steering optimised New O-ring faced seal pipes and hoses in the loader hydraulic systems, combined with new materials and high class components such as the Hydraforce LIS valve, increase quality and reliability.

High operator comfort The new Doosan DL300A wheel loader offers performance, operator The new ROPS/FOPS certified cab offers comfort, easy handling and serviceability, as well as superior durability industry-leading operator comfort through a combination of increased space (six per cent more volume in Easier servicing and maintenance the DL250A and 11 per cent more in the DL300A and DL420A models); In the DL250A wheel loader, the radiator grille opens wider for better better visibility due to a wider front glass section; better air conditioning access, while the swing-out fan on the DL300A and DL420A with a 30 per cent increase in air nozzles; a new instrument panel; a new simplifies maintenance. The DL250A features a new cooler while, in layout for controls and switches and improved storage areas. all three models, the air conditioner condenser is assembled with the coolers for better protection. In the DL250A, the air conditioner New ZF axles condenser can be accessed directly by lifting the grille. The new wheel loaders feature new versions of the ZF axles previously used on the Mega models. The DL250A features the


African Review of Business and Technology - November 2012

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â&#x20AC;Ś and even more profitable: BW 332 DEEP IMPACT . 32 tonnes harnessed to one single drum roller - the result: another masterpiece from our engineers. The heaviest single drum roller in the world, the BW 332, now offers you 50% more compaction performance*. The benefit: maximum compaction performance at minimum cost per cubic metre. Like to know more? Find out at www. 3215 04/12

* 15% more surface performance plus 35% increased depth effect (up to 4 m) give 50%

higher overall performance compared to machines in the 26 t class.

TH!NK. Time for new standards. BOMAG.

S13 ATR Nov 2012 Mining_Layout 1 18/10/2012 15:59 Page 64



manufacturing the capacitors, AVX sends out the conflict-free tantalum products to partners. For the first pilot run, the partner was Motorola Solutions. A conflict-free supply chain A document said to be from an independent audit conducted by Gregory Mthembu-Salter, a consultant to the United Nations Group of Experts, confirmed that mineral output from the two mines in the pilot was conflict-free according to Organisation for Economic Cooperation and Development (OECD) guidelines, though certain risks and areas for improvement were highlighted. Samples of tantalum are reportedly taken along the pipeline, including at the mine, depot, warehouse, and smelter. Bill Millman, technical and quality director of AVX’s tantalum division, said that until SfH is fully integrated into its supply chain, every capacitor with DRC ore will be marked with its own traceable ID. US-based Kemet, another manufacturer of tantalum capacitors, also has a conflict-free tantalum production project underway in the DRC. The company has secured a longterm supply agreement with a mine in Katanga, which has never been a conflict area, said Dan Perisco, Kemet’s vice president of strategic management and business development. However, as a precautionary measure, there is a police presence at the site, which is also semi-mechanised and relies upon artisanal miners. In February, Kemet announced the completion of its deal to acquire Niotan, a tantalum powder manufacturer. ‘We now have a smelter. We have the ability to produce capacitors. So we have a closed pipeline and we put a whole community back to work,’ Perisco said. Projects to bring conflict-free tantalum back to the market have been highly anticipated by some while widely criticised by others. Millman says traders in the DRC have a grudge against the scheme. ‘The traders’ business is their contacts, their knowledge of the mines, and their ability to connect the dots between the processor and the miner, so they don’t want transparency and they do not contribute to the closed pipeline,’ he said. According to some industry analysts, nonDRC and non-African mines seem to believe that all the new safeguards against conflict minerals do not work. They maintain that supply out of the DRC will affect pricing, and certain companies have worked very hard over the last few years to paint a negative picture of all material out of Africa, except that in Mozambique. As DRC tantalum fell from the market’s graces, the void was filled by suppliers in other regions. Three major mines closed


during the global economic crisis and supply was believed to be tight. An economic recovery also appeared to be emerging, so users who had been destocking were eager to get their hands on conflict-free supply. In these conditions, prices escalated, running from about $45 to $150/lb. But it appears that end users will welcome supply from the DRC. In addition to Motorola Solutions, other internationally recognised companies such as Hewlett Packard (HP), Intel, and Nokia have become partners in SfH. According to Millman, the historic price volatility and controversy over conflict minerals has led some users to substitute other materials for tantalum. He described the cyclical nature of the industry, saying that the price of tantalum goes up and then the price comes down. This cycle typically takes 18 to 24 months, he said. According to Perisco, the high prices seen during this uptrend simply are not sustainable for many end users, including capacitor manufacturers. ‘We believe long term the sustainable price is somewhere between $60 to 80/lb,’ he says. ‘We believe [the project in the DRC] will eliminate a lot of

the volatility and speculation out of the market.’ Some may raise concerns that efforts to bring prices down may hurt artisanal miners in the DRC, but Perisco does not foresee this happening. ‘When prices went from $45 to $150, the artisanal miners made no more money. It all went further down the supply chain,’ he said. That some users have become frustrated by market conditions and have abandoned the market, and capacitor manufacturers have taken it upon themselves to forge direct relationships in the DRC, should serve as a call for tantalum producers to carefully consider their pricing policies. The fact that capacitor manufacturers are leading the efforts to revive the DRC tantalum industry may also highlight opportunities for miners willing to assess that region. The DRC is considered one of the world’s largest sources of tantalum. Perisco says that as far as he is aware, no one even knows for sure how much is there. But, he adds, the tantalum found thus far is high grade and easy to mine. ■ Jon Offei-Ansah

The world’s largest articulated underground mining truck Atlas Copco has given attendees at the 2012 MINExpo in Las Vegas, in the USA, a sneak peek at the world’s largest articulated underground mining truck, the Minetruck MT85, which has been designed for demanding conditions with focus on safety, ergonomic and operators comfort to maximise productivity in underground haulage. Ben Thompson, Product Manager at Atlas Copco’s Underground Rock Excavation Division, explained, “This truck is designed to fit the same drift dimensions of 50 and 60 tonne class trucks with one essential difference. It will haul 85 tonnes which gives a tremendous productivity boost in terms of

The Minetruck MT85 from Atlas Copco offers a payload of 85 tonnes and fits into the majority of mine ramps and inclines, thereby boosting haulage capacity while lowering transport costs

African Review of Business and Technology - November 2012

fewer trucks and tonnes/kilometres per hour.” Thompson emphasises that the Minetruck MT85 is also fast and highly maneuverable on ramps and inclines. “This means that fewer cycles need to be made which, in turn, reduces the cost of transport in relation to the amount of material hauled. “Not only that, the new MT85 truck now gives mining companies a more cost effective way to haul ore in the mine. It makes it more attractive to go for deeper ore bodies by ramp instead of sinking a shaft.” The Minetruck MT85 has high capacity (but fits in a small envelope) is 3.4 m wide and 3.5 m high, easily fitting into 6.0 x 6.0 m drifts. Despite its length - at 14.0 m - the Minetruck MT85 has an impressive turning radius of 44 degrees which is largely thanks to its electro-hydraulic steering of the rear axle which gives maximum maneuverability. This truck also offers a high degree of modularity and options. The dump box can be tipped at the side of the vehicle as well as at the rear. There are also two tailgate configurations (hinged at top or at bottom), three engine power alternatives (535, 760 or 1 010 hp) as well as four wheel or six wheel drive to full fill different customer’s needs.

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If the wheels come off the supercycle... Why communications networks must be reliable and adaptable to support efficient and profitable mine operation


en years of boom within the mining industry may be coming to an end. The commodities 'supercycle' began in 2004 and there are already signs that it is slowing down. Some commentators suggest we are now facing 20 years of downturn. Although this seems unlikely, cost management will be increasingly important for mining companies. Effective remote communications can help increase the efficiency of business operations and the value of technology investments, says Bernie Branfield, General Manager at Datasat Communications.. Mining and financial publications this summer seem to have been full of headlines like 'End of the supercycle' or 'Death of the supercycle'. In this scenario, we have entered a vicious circle. The slowing of the Chinese economy is impacting commodity prices; which is impacting mining share prices; both of which are impacting the growth plans and profitability of mining companies. The result is the period of boom the industry has experienced since 2004 will come to a natural conclusion. The most pessimistic outlook is for a return to the dark ages of commodities between 1973 and 2003. Not everyone agrees with this prognosis. Although the Chinese economy is not growing as quickly as before - only 7.5 per cent forecast growth for 2012 - the Australian mining sector continues to expand rapidly. In fact, the Australian government estimates that around 60 per cent of all capital expenditure on building and construction in the country are related to mining. Many analysts point out that there is still a very pronounced upward curve in global demand for almost all minerals and metals. Allied to diminishing supplies and you have a situation where prices may fall slightly in the short term - but not off a cliff. Of course, the difficulty is that, at the same time as prices and share values are in flux, the cost of production is rising. Deutsche


Bank estimates the cost of running and building mines increased by between 10-15 per cent in 2011. You don't have to look too far for the reasons for this. Copper mines, for example, now have to dig up 50 per cent more rock than they did in 1994 for the same amount of the metal. It is against this backdrop that BHP Billiton announced it is to shelve US$80bn of investment it had planned for 2015. Yet, Latin America and Africa still offer many potentially attractive opportunities. So, the supercycle may not be coming to an end, it may simply be changing shape. A focus on cost management Whether we go into a supercycle mark II or exit the current supercycle altogether, the transitional period will increase the industry's focus on effective cost management. It's instructive to see that the Ernst & Young report on the business risks facing mining in 2011 and 2012 saw 'Capital project execution' appear at number 5 in the top ten list where it had not appeared at all in the previous list. This was three places above the perennial 'Cost management'. The Ernst & Young report states, â&#x20AC;&#x153;Upstream metals and mining projects comprise a significant percentage of company spend and require particular focus on budgets, schedules and execution.â&#x20AC;? Given the current climate, it is attractive to focus on short-term cost cutting but this should be complemented by taking steps to generate longer term value for the mining company. The effective use of remote communications can help in both respects. Of course, a mining company is not going to alter its mine plans solely based on the quality of the communications infrastructure available but remote communications has a disproportionately high effect on business efficiency for the amount of capital expenditure.

African Review of Business and Technology - November 2012

High performance network architectures For a mine operation to be as efficient and profitable as possible, there has to be a reliable, high performance and easily adaptable network infrastructure. The need for data hungry applications and real-time information sharing has grown rapidly. The inability to meet these demands can be costly. One industry estimate suggested that the oil and gas industries alone lose US$15bn each year through poor decision making from lack of access to relevant information where and when it is needed. In addition, in uncertain economic times, all companies will look to control head count. The mining industry is no different. However, the mining industry is slightly different as it is faced with a growing crisis in terms of available skills. One way to address this area is to look for business processes that can be handled through remote operations. For most organisations, the success of increased remote operations will be determined by the robustness and availability of the network that lets them monitor and manage from wherever the business requires - whether onsite, off-site or the other side of the world. To fully exploit the investment that a mining company makes in communications, it should consider how to get the most from its network infrastructure. Often, a site will require little more than Internet access and SCADA-style data applications. However, larger sites - especially in the more remote locations on earth - have much more sophisticated demands. While mine engineers and geophysicists need to share huge files and video with headquarters, there is a need for access to high performance business applications and miner welfare facilities. There can be many different organisations the mine owner, prime contractors and subcontractors - on the site. This often leads to the establishment of a number of different networks on the same site. Today, it is possible

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to create a single network infrastructure that allows a number of sub-networks to operate securely and independently that reduces the cost of equipment and management required to provide the range of network services the site requires. Think innovatively An effective remote communications infrastructure can give mine operators the opportunity to think innovatively. While many different potential risks moved up and down Ernst & Young's list, one remains very near the top. Operators know that they have to maintain a social licence to operate in the areas where they are active. In addition to safety and environmental issues, this means

working closely with the local communities. For very little expense, mine operators can look to extend their existing communication infrastructure to deliver educational and entertainment-style content to communities that surround their sites. Today, mining companies have access to a greater range of network technologies to create high performance, high-availability communications infrastructures anywhere in the world. Developments in satellite means that high data rates can be achieved securely and affordably for inter-site and inter-country communications. Advances in wireless and mobile makes a wide range of applications available for intra-site and siteto-site communications.

Whether ending or changing shape, the current focus on the mining supercycle is giving us a chance to look at ways to make mine operations more efficient. Remote communications can help to reduce costs and introduce more remote operations on sites. In addition, it can help drive longer term value by allowing operators to do more with their infrastructures. A mining company should select a network service provider that they can work closely with to scope out its specific requirements and create a communications infrastructure that will exactly meet its needs and budgets. ■ Bernie Branfield, General Manager, Datasat Communications

New chutes at Black Rock M&J Engineering has been engaged in the completion of an order for the supply and installation of 29 of its Weba Chute Systems at Assmang Manganese’s Black Rock Mine Operations, about 80km north-west of Kuruman in South Africa’s Northern Cape. The company has been undertaking all the site surveys as well as the design, fabrication, removal of the existing chutes, installation of the Weba Chute Systems and commissioning these units. The 29 new Weba Chute Systems are replacing the mine’s existing conventional transfer points. These have been in operation for about two years, but are not performing to the required specifications. “The Black Rock team called us in to survey all 29 transfer points and our design consequently reflects throughput increases and greatly reduced potential for blockages,” M&J Engineering project manager, Ted Cruikshank, says. “Close co-operation between our team and Black Rock is ensuring that the chutes are installed at specific times to achieve minimum downtime.” The Weba Chute Systems will carry ROM material ranging in size from minus 150 mm. On the 900 mm ROM conveyor, bulk density

is 2.4 tons per cubic metre at an average of 900 ton per hour with a conveyor speed of 2.7 metres per second. The conveyor is moving maximum size slabs up to 300 mm. The transfer points vary in operation from bin discharge, silo discharge, plant feed, primary feed and discharge, secondary feed and discharge, tertiary feed, desliming screen discharge and product bin chutes. The product bin chutes will handle material with a maximum size of minus 75 to plus 6 mm, and this size distribution is all saleable products. M&J Engineering first supplied a skip discharge Weba Chute System to Black Rock 12 years ago and Cruikshank reports that the chute is still working well. The company has also supplied Weba Chute Systems to other Assmang operations including Khumani, Beeshoek, Machadodorp and Cato Ridge. Regardless of belt speed, belt width, material size, shape or throughput, the Weba Chute System eliminates the problems associated with conventional transfer chutes and provides cost effective, productivity enhancing and environmentally friendly solutions.

Weba Chute Systems have been installed in the crushing plant and primary screening building at Black Rock

Weba desliming screen oversize chutes feeding onto the conveyor at Black Rock


African Review of Business and Technology - November 2012

A Weba Chute System feeding onto a discharge chute at Black Rock

One of the bin discharge chutes installed by Weba Chute Systems at Black Rock

Weba Chute Systems' surge bin discharge chute feeding onto the plant conveyor at Black Rock

S14 ATR Nov 2012 Solutions_Layout 1 18/10/2012 16:12 Page 69





13-15 NOVEMBER 2012











COME AND HEAR THE FUTURE OF DIGITAL AFRICA... Nicola D’Elia Growth Manager Africa facebook

Peter Vesterbacka Mighty Eagle Rovio

Ryan Shuttleworth Technology Evangelist Amazon Web Services

Alan Knott-Craig CEO Cell C

Alan Knott-Craig Jr CEO Mxit

Patrick Walker Sr Director for Content Partnerships EMEA YouTube

Richard Bell CEO Wananchi Group

Sivan Pillay Managing Director SA Endemol


Register today:

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Automotive Innovation comes to commercials event


he origins of the IAA can be traced back to more than 100 years to 1897, when eight vehicles were exhibited in Berlin, in Germany. Since then, a regular exhibition, attracting increasingly high visitor turnout, has been held. Attendance became so great that in 1992 the event had to be separated into an alternating exhibition of passenger cars and commercial vehicles in 1991. Celebrating commercial vehicles The IAA Commercial Vehicles event has been held in Hanover, in Germany, in evennumbered years since 1992. In September 2012 the 64th IAA Commercial Vehicles took place. Amongst the key presentations at the event was a display of innovations by ZF Friedrichshafen AG, whose novelties met all current but also future industry requirements - the best example of which was TraXon, a new automatic transmission system for heavy commercial vehicles.

ZF's new TraXon automatic transmission system is very flexible - the basic transmission can be coupled with five drive modules: a single or double-disk clutch; a dual-clutch module; hybrid module; an engine-dependent PTO; and a torque converter clutch” Thanks to its modular setup and numerous detailed solutions, it is the latest benchmark on the market. Here, against the backdrop of lightweight technology, ZF showed how intelligent material use and functional integration help reduce the empty weight of commercial vehicles.


Recording the rise in visitors to IAA international motor show Never before has an IAA event had so many new commercial vehicles - vans, heavy trucks, buses - on show as the 2012 exhibition. "Commercial Vehicles - Driving the Future”, which showcased the drive for innovation in mobility, transport and logistics. The 354 world premieres - more than twothirds of them from suppliers - set a new record. The number of exhibitors - 1,904 exhibitors from 46 countries - is nine per cent higher than in 2010, and the exhibition space was up by 11 per cent to 260,000 square metres. This IAA Commercial Vehicles event had the second largest number of participants and the second largest exhibition area since the IAA was divided into the IAA Cars and the IAA Commercial Vehicles - that is, for 20 years. By the time the IAA closed its door, over 260,000 people had visited this key trade fair. Issues in the spotlight Aerodynamics was one of the very large topics at the IAA. Progress has been made in the design of the front of a truck, the connection between the cab and the semitrailer, the side covers and the rear of the trailer. Manufacturers of trailers and bodies are well on the way with their developments. Manufacturers of commercial vehicle tyres are also making important contributions to bring down the rolling resistance. A walking tour of the IAA event revealed that today the right drive train already exists for every purpose. The range is more extensive than ever before. There is the natural gas drive train for distribution traffic. It can be found in vehicles up to the size of heavy trucks. The advantage of this type of powertrain is that it has virtually no particulate emissions any more - gaseous fuel ensures clean combustion. Almost all the manufacturers had hybrid vehicles on offer - ranging from small trucks for local distribution all the way to long-distance trucks. So this applies not only to the 7.5-

African Review of Business and Technology - November 2012

The new Iveco Stralis Hi-Way debuted before a large international audience

Allison presented advanced transmissions at IAA 2012 - including the 3000 Series with retarder” tonners. Hybrid technology can pay off even in 40-tonne trucks. In a truck covering a distance of 150,000 kilometres annually, small savings of just a few per cent add up to a large reduction in CO2. Many manufacturers also come with fully electric delivery vehicles up to 3.5 tonnes, some of them even heavier. These vans operate with zero local emissions and are so quiet they only "whisper.” The products of the financial service providers in the commercial vehicle trade, for example attractive leasing packages, were the subject of a dedicated specialist event at the IAA. Another example of rising efficiency is intelligent, anticipatory transmission control: an electronic GPS control unit enables the vehicle to "recognise” the topography of the motorway, and the truck keeps the throttle open before starting a climb - and on gentle downward slopes it uses freewheeling. The strategy for changing gears or for operation of hybrid drives has been optimised to do just this.

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Transport Measurement systems for high-speed inspection trains Monitoring the condition of railway infrastructure is an essential precondition for the safe and reliable operation of railway lines. Particularly cost-effective is the regular use of inspection trains equipped with measurement systems. Such systems need to measure accurately and quickly through high-speed inspection trains, thus minimising adverse effects on regular traffic. The devices should be robust, reliable and low-maintenance. In response to these requirements Fraunhofer IPM offers a series of modular railway measurement systems for high-speed inspection trains, which are optimised for varying tasks. Contact-wire ranging system (CRS) The CRS determines the position of up to four contact wires simultaneously without touching them, at speeds of up to 350km/hr. The core of the CRS is the new sector profile scanner (SPS), which is based on distance measurement with a high-frequency modulated laser beam and the phasemeasurement technique. The acquisition range of ±35° is continuously scanned by a mirror with a maximum frequency of 800Hz. Height and stagger of the wire are deduced from the scan angle and the distance. With a set of linear transducers, which record the rotary movement (roll) of the bogie, the wire positions can be referenced to the track. Contact wire wear-monitoring system The contact wire wear-monitoring system (WWS) deduces the degree of wear from the width of the sliding surface at contact wires with a round bottom. A special unit illuminates the wires from below. Information about the wire position (eg from the CRS) is used to focus two cameras, which capture the images of the sliding surface. A maximum of four wires can be processed in real-time and without gaps, at speeds up to about 200km/hr. 3D clearance-profile scanner (CPS) for railways The CPS continuously scans the surrounding of the track with up to 200 profiles per


The stationary Sector Profile Scanner SPS measures the geometry of passing trains; laser scanners ensure a precise 3D gauging of train profiles as the train passes through a measuring portal (Photo: K-U Wudtke/Fraunhofer IPM)

If a train passes through the measuring portal at a speed of 100 km per hour, the four scanners scan the train shape every 3.5 cm; the vertical scanning plane is rotated slightly so that car end faces and gaps are also measured” second. Due to the continuous movement of the wagon, a three-dimensional image of the environment is generated. With each rotation the rails are also detected, which allows users to refer the values to the track centre, without any additional sensors. The full functional versatility of the CPS sensor is achieved by several optional

African Review of Business and Technology - November 2012

software modules, which perform an online analysis of the data and yield results of typical measurement tasks: height and stagger of the contact wire, distance to adjacent track, and ballast profile. With these software modules, the CPS effectively becomes a unique multi-purpose sensor.

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Listeners tune in with Freeplay radios Africa’s Community Listeners’ Clubs, and the Freeplay radios they rely upon, are helping to transform people’s lives in parts of the continent that do not have access to a regular power supply. Tel: +27 82 837 2973 Set up by the Food and Agriculture Organisation of the United Nations Dimitra project (FAO-Dimitra) in partnership with national non-governmental organisations (NGOs), Dimitra Community Listeners’ Clubs facilitate dialogue for individuals and groups and have proved to be an efficient way for isolated rural communities to access information and engage in participatory communication which leads to action. The use of Freeplay’s solar and wind-up radios by the Community Listeners’ Clubs, has enabled villagers to share their concerns, priorities and needs, obtain relevant information that would otherwise be beyond their reach and take constructive action together. The clubs are seen as a tool for empowering people, particularly women, and for giving them a voice and a role in their own development Freeplay radios are used by these clubs to listen to broadcasts and take part in debates about agriculture, food security and rural development, including health, education, and social issues. This is a great means of enabling communication within and between communities that share

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similar experiences, concerns and opportunities. Each Community Listeners’ Club - and there are now more than 700 of them in both Niger and the Democratic Republic of Congo (DRC) - is established following a process of consultation and training of women and men chosen by their own communities to guide the process. The clubs are then provided with Freeplay’s robust and reliable wind-up and solar-powered radios and strong relationships are built by the clubs with local radio stations, which broadcast programmes relevant to, and with input from, the clubs and their members.

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Advertiser’s Index Aggreko Middle East Ltd.............51 Ajman Free Zone ............................29 Al Fajer Exhibition & Services (TEKNO 2012) ................26 Al Fajer Exhibition & Services (Arabplast 2012)..............................67 Arik Air Internatioanl Ltd.............71 Astra Veicoli Industriali S.p.A. - Iveco Group........................39 Bomag GmbH and Company OHG ................................63 Ciber Equipamentos Rodoviários Ltda. ............................61 COELMO Generators S.r.l.............47 Delegation of German Industry & Commerce in Ghana (WACEE 2012) ..................................37 Eaton Electrical South Africa (Pty) Ltd. ................................76 Eko Hotel and Suites ....................73 Emirates ..............................................15 ERL Marketing International......25 Ethiopian Airlines Enterprise ....75 F G Wilson Engineering Ltd. ......21 First Bank of Nigeria PLC..............33 First Forever Co Ltd ........................65 Guardia Systems..............................41 Hess GmbH........................................52


Informa Telecoms & Media (AfricaCom 2012) ............................69 Irem spa ..............................................57 Jeddah Cables Co. ..........................55 Jessop & Associates (Pty) Ltd. ..17 Kirloskar Brothers Ltd. ..................13 Kohler Power Systems..................49 Komatsu..............................................53 LionRock Power ..............................48 Mahindra & Mahindra Ltd.............7 Mantrac Egypt..................................59 Marelli Motori S.p.A. ........................2 Messe München (electronica 2012) ..........................27 Metalgalante-Carmix....................56 Mitsumi Group ................................31 NUCO INDUSTRIAL SERVICES ..47 Printacom ..........................................43 Rolls Royce ........................................23 Shandong Shantui Construction Machinery Imp. & Exp. Co. Ltd. ..11 Standard Bank (Stanbic)..............35 Volvo Construction Equipment Int.....................................5 Yahsat ..................................................19 Yamuna Power & Infrastructure Ltd ..............................7 Zest - WEG Group............................45

African Review of Business and Technology - November 2012

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African Review November 2012