African Review October 2014

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

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October 2014

P52

Genset market analysis

P14

Automotive innovations 50 years Construction:

Transport:

Business:

Solutions to deliver sustainable building projects P78

Stakeholders in shipping meet in Kenya P44

Affluence and industry in Angola P24

Serving business in Africa since 1964

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UP FRONT

Editor’s Note P

ages 20 to 33 of this issue address business and finance, with analyses of commodity markets, investment opportunities, financial inclusion and banking reform. Covering page 34 to page 42, the technology section this month offers guidance on choosing printers with the ‘greenest’ credentials, on the use of identification solutions to improve access to finance in West Africa, and on using collision warning systems for industrial vehicles. Transport continues into the section from page 44 to page 49, with articles on East African logistics and on West African aviation.

In the power section, which runs over pages 52 to 73, there is the annual review of genset markets, followed by reports on the improvement of Southern African grids, a key Angolan biofuel project, Nigerian energy infrastructure, South African solar power, and a key partnership delivering a new form of automotive energy.

Pages 75 through to 85 cover construction, with articles on services, contracting, commercial partnerships, and equipment. Mining is addressed, too, between pages 87 and 90, with analysis of the recent decline in gold production and markets, and notes on both condition monitoring and materials handling.

Main cover picture: MAN Inset, bottom left: Murray & Roberts Inset, top left: Caterpillar

Andrew Croft, Editor

Contents

REGULARS 04 Agenda:

14 Bulletin:

Commercial matters across the continent

92 Solutions:

Innovations delivered to automotive markets

Products for firms at work in mineral industries

P29 FEATURES 20 Business Structured commodity markets; Nigerian growth prospects; and emerging investment opportunities in Angola’s economy

29 Finance Agricultural access to capital; and the prospects for reform of South African banks

34 Technology

P73

The ‘greenest’ printers; an ID programme for financial inclusion in Nigeria; visual information systems for better management; collision warning systems for mining: and vehicle tracking

44 Transport East African trade and logistics; West African aviation

52 Power Analysis of key genset markets; new capacity for Southern African grids; engine technology for West African industry; previewing Africa Electricity; wind turbine control; an Angolan biofuel project; Nigerian energy infrastructure; South African photovoltaics; and automotive energy

75 Construction Services in South Africa; earthmoving fleets; sustainable practices; telehandlers; integrating infrastructure in South Africa; Chinese partners in Africa; and affordable accommodation Audit Bureau of Circulations Business Magazines

Editor: Andrew Croft andrew.croft@alaincharles.com Editorial and Design team: Bob Adams Hiriyti Bairu, Sindhuja Balaji, Ranganath GS Prashant AP, Rhonita Patnaik, Louise Quick Prasad Shankarappa, Zsa Tebbit Nicky Valsamakis and Ben Watts Publisher: Nick Fordham Publishing Director: Pallavi Pandey

www.africanreview.com

87 Mining The possible decline of gold; services for condition monitoring; and materials handling

Magazine Manager: Roman Zincenko Tel: +44 207 834 7676 Fax: +44 7976 232791 Email: roman.zincenko@alaincharles.com

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India: Tanmay Mishra Tel: +91 80 65684483 Fax: +91 80 40600791 Email: tanmay.mishra@alaincharles.com Nigeria: Bola Olowo Tel: +234 80 34349299 Email: bola.olowo@alaincharles.com

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

Subscriptions: circulation@alaincharles.com Chairman: Derek Fordham Printed by: Buxton Press 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 Servingtheworldofbusiness

African Review of Business and Technology - October 2014

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NEWS

Agenda / North Reporting on economic growth The African Development Bank (AfDB) North Africa 2014 report focuses on inclusive growth, providing an overview of the AfDB's activities in the region, along with a summary of the socio-economic situation in each of the five countries covered.

The report, entitled Looking for inclusion.

This year's report focuses on the pressing need for inclusive growth and development, as demonstrated by the uprisings experienced in several countries in the region in early 2011.

The report includes a brand new indicator, which measures the extent to which growth may be considered inclusive. The data reveal an important observation: in 2008-2010, the five countries in the North Africa region

(Morocco, Algeria, Tunisia, Libya and Egypt) posted below-average performance figures.

Tunisia was the highest-ranked country in the region, followed by Egypt, Libya, Morocco and Algeria respectively.

Despite improvements in the North African economies, both in real terms and in comparison with other developing nations, the report reveals deepening inequalities between social groups in two key areas: the labour market and regional variations.

Furthermore, these very same inequalities are recognised as the main obstacles to inclusive growth. Genuinely inclusive growth would help to deliver fairer distribution of wealth between age groups, social classes and regions in these countries.

Corporate loan for Tunisian energy AfDB is committed to facilitating a seven-year, non-sovereign guarantee, US$75mn corporate loan to the Entreprise Tunisienne d’Activités Pétrolières (ETAP), the Tunisian state-owned oil and gas exploration and production company, to finance part of the South Tunisian Gas Project (STGP)/ Nawara project - an initiative entailing the construction of gas transportation and treatment facilities to bring stranded and associated gas from the south of Tunisia (Nawara concession and others) to market. It comprises a central processing facility (CPF) that will collect gas received from the Nawara field to be compressed prior to transport via the gas

pipeline for the commercial gas and the Trapsa oil pipeline for the condensates; a 370km pipeline for rich gas, condensates and commercial products with a design capacity of 10mn cubic metres/day; and a gas treatment plant (GTP) located on the coast in the Ghannouch industrial area near Gabès that will produce marketable products (natural gas, propane and butane).

The project is being constructed in a 50/50 joint venture by ETAP and OMV Tunisia GmbH, the Tunisian subsidiary of the OMV Austria, the largest listed industrial company in Austria and the leading energy Group in Central and Southeastern Europe.

More Egyptian homes to get gas A loan of US$500mn from the World Bank is set to support the expansion of natural gas access to 1.5mn Egyptian households in eleven governorates, including three governorates (Sohag, Qena and Aswan) located in Upper Egypt, where poverty levels are the highest. The Egypt Household Natural Gas Connection Project will support the Egyptian government’s programme to replace household consumption of liquefied petroleum gas (LPG), which is mostly imported, with grid-connected natural gas. About 52 per cent of the neighbourhoods targeted by the project have poverty rates higher than Egypt’s national average.

“We are pleased to help improve the delivery of energy services to the people of Egypt,” said Hartwig Schafer, World Bank country director for Egypt, Yemen, and Djibouti. “Conversion to piped natural gas will help give households access to a safer, more reliable and cheaper supply of gas compared to buying LPG cylinders.”

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African Review of Business and Technology - October 2014

GE helps El Marakby Steel increase efficiency

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gyptian steel makers are facing tough requirements to comply with the Grid code parameters put in place by the electrical authorities to ensure the power quality and the stability of the transmission grid. Addressing this issue, GE's Power Conversion business was chosen by El Marakby Steel in Egypt to supply a dynamic var compensator (DSVC) to reduce the frequency and intensity of power disturbances generated by the electrical arc furnace of El Marakby Steel’s new melting shop.

GE's DSVC was developed to secure grid technical performances and among them a flicker reduction. Indeed, flicker is generated when melting scrap metal with an EAF. These large scale consumers with short time varying loads can cause transmission line voltages to sporadically drop, resulting in power disturbances. With GE's DSVC based on voltage source converter technology, a flicker reduction factor of up to five can be achieved. To such a point, an electrical disturbance resulting from the EAF will not be noticed.

This flicker reduction helps to create a cleaner, more reliable Egyptian power grid.

Lower disturbance on the power grid also ensures more power is transmitted to melt the steel. By consuming same amount of the electricity from the grid, GE's solution can help the customer to melt more steel, therefore increases production of the steel plant and saves production cost. The clean grid does little harm to the equipment so it increases the life-span of the equipment and saves maintenance cost.

For the project, GE is supplying a DSVC including three MV7315 medium-voltage drives combined with fixed compensation, providing the required amount of reactive power for the plant (68 MVAR). The scalable drives enable GE to meet El Marakby Steel's precise power requirements, eliminating waste energy and costs. www.africanreview.com

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NEWS

Agenda / East flydubai reaches Burundi, Uganda and Rwanda from the UAE A young airline, which seeks to enhance Dubai’s economic development through support for trade and tourism in previously underserved markets, has added three routes in East Africa to its network. flydubai’s addition of flights to Bujumbura in Burundi, Entebbe in Uganda and Kigali in Rwanda means the airline now flies to nine destinations in Africa; it was already flying to Alexandria in Egypt, Khartoum and Port Sudan in Sudan, Juba in South Sudan, the Ethiopian capital Addis Ababa as well as Djibouti’s capital Djibouti.

According to Ghaith Al Ghaith, chief executive officer of flydubai, the airline is the first national carrier from the UAE to fly to Rwanda and Burundi. flydubai’s operation to these emerging markets will provide passengers with a reliable, direct and highquality service. Business Class, which is made available for the first time between Dubai and Burundi, will give passengers travelling to these new destinations a more comfortable and personalised travel experience.

Business Class at flydubai

The new locations are strategically important. Rwanda and Burundi are home to some of the most biodiverse places. Filled with numerous volcanoes, nature reserves and the second deepest lake in the world, the two countries also have one third of the world’s remaining Mountain Gorillas and one third of Africa’s bird species. While tourism is the largest contributor to Rwanda and Burundi’s economies, Uganda is considered one of Africa’s most progressive economies and is emerging as one of the leading commercial centres within Africa.

flydubai’s network has extended in east Africa

Entico and AUC hold climate event The African Union Commission has collaborated with Entico Corporation to host the Africa Climate Resilient Infrastructure Summit (ACRIS, www.enticoevents.com/acris) in Addis Ababa, Ethiopia, 17-19 November 2014. All African ministers responsible for ICT, energy, transport infrastructure and agriculture, food security and water have been invited to meet to further the development agenda for climate resilient infrastructures for Africa. ACRIS aims at assisting African Union Member States in preparing for and implementing measures related to resilient infrastructures in their respective countries, as well as in developing and strengthening local, regional and international cooperation on these matters. International private sector companies and organisations will be able to listen to high-level keynote speeches during plenary sessions whilst making full use of the unique pre-scheduled one-to-one roundtable meetings organised during the summit in order to initiate collaboration.

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African Review of Business and Technology - October 2014

Premier Club marks next step for Airtel Zambia

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obile service provider Airtel Zambia has invested US$142mn in network expansion with a view to enhancing customer service. According to the company’s managing director, Charity Lumpa, it has invested US$80mn in the expansion of the network and an additional US$62mn to manage the growth.

Ms Lumpa was speaking in Lusaka recently during the launch of Phase Two of Airtel Premier Club, a programme designed for high-value customers. The Premier Club includes a personalised service, which will enable customers have closer engagement with the company’s directors and managers. It will also enable members access over 600 international airport lounges regardless of the airline class of travel and access to premier lounges in the Airtel service centres. Premier Club members will also get discounts from providers of various goods and services.

Ms Lumpa said Airtel remains committed to improving customer service through various initiatives, adding that, ‘’Our network and data services have been a pain. Our roaming experience has had its challenges from pricing to connectivity. We have not been responsible in instances to attend to queries and complaints and the launch is one step of addressing some of these issues.’’

Speaking at the same event, Bank of Zambia (BoZ) deputy governor administration, Tukiya Kankasa-Mabula, urged mobile service providers to double their efforts in enhancing financial inclusion through mobile money services. ‘’BoZ has one of its strategic objectives of promoting financial inclusion and would like to urge Airtel through its subsidiary, Airtel Money Zambia Limited, and other players in this space to double up their efforts to ensure that the up-take of mobile money services reaches all corners of this nation,’’ she said.

Nawa Mutumweno www.africanreview.com

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NEWS

Agenda / South Philips and UJ start high-tech medical training Royal Philips has worked in collaboration with the University of Johannesburg (UJ) to implement an advanced medical training simulation lab on UJ premises. This pioneering project will contribute to the hands-on training of medical students in South Africa by providing accurate simulations in imitated medical emergency settings.

The Simulation Lab project is part of Philips’ ambition to improve the quality of healthcare in South Africa through meaningful solutions, innovations and partnerships. Recognizing that lack of availability of trained and skilled healthcare professionals is an increasing challenge across Africa, Philips has been putting a lot of emphasis on education and training. Philips has equipped the Simulation Lab at UJ with medical equipment and diagnostic devices intended to facilitate the exposure of emergency care students and academic staff to current medical technologies and adequately prepare them to operate under a pressurised and intense work environment.

“It is important that students have a fully incorporated curriculum with simulation as a key component of teaching and assessment.

Up until recently, staff and students made use of classrooms that were not purposefully designed for simulation-based learning. We started to explore ideas around creating an

The Simulation Lab project is part of an initiative to improve the quality of healthcare in South Africa

integrated, multi-disciplinary laboratory that would focus on teaching and assessment of clinical skills in a simulation environment. As a company focused on innovations in the healthcare sector, Philips has proved to be the ideal partner to bring this Simulation Laboratory concept to life,” said Dr Craig Lambert, head of the Department of Emergency Medical Care, at the University of Johannesburg.

The South African Department of Higher Education and Training has also played a key role in this project by awarding a clinical

training grant to assist UJ in improving the clinical competencies of health professional graduates, and getting the Simulation Lab up and running.

The Simulation Lab is divided into four wards: an ambulance simulation room, an emergency department representing casualty simulation, a general ward and an intensive care unit (ICU). University departments of Emergency Medical Care, Biomedical Technology, Nursing and Radiology will benefit from the training at the new Simulation Lab.

Ceded leases raise Zim’s mining prospects

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seldom have the resources to fund the work,” he he few new mining projects in the second said. half of 2014 – promoted by beneficiaries of He said there are opportunities to grow the mining leases and claims ceded to government – mining sector if the investment regime can be are among the few encouraging aspects of a made more attractive. The mining sector is the mining industry still facing tough times, biggest contributor to Zimbabwe’s economy, according to SRK Consulting country manager accounting for about 15 per cent of gross in Zimbabwe, Arimon Ngilazi. domestic product and nearly 50 per cent of state “These leases have to be developed without revenue. delay if the beneficiaries do not want to risk losing Arimon Ngilazi, SRK Consulting country Ngilazi said, “Many prospective mine developers them,” said Ngilazi. He cautioned, however, that manager in Zimbabwe are unable to fund the feasibility and other studies many small claim holders found it difficult to raise for the projects they would like to initiate; and many of those who do the funding for proper studies to be done on their mining properties. manage make a start, still struggle to meet the costs they have “The smaller companies are obviously keen to get their claims incurred in their efforts to build a mining enterprise.” professionally assessed and ‘packaged’ to attract investors, but

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NEWS

Agenda / West New Ghanaian gas production An US$800mn gas processing plant is set to commence operation at Atuabo in the West region of the country, close to the Jubilee Fields, and is expected to produce about 107mn standard cubic feet of lean gas per day, 500 tonnes of LPG a day, 80 tonnes of pentane and 45 tons of condensates per day.

Originally, there were plans to use parts of the gas for fertiliser production with an Indian company but, this part of the project is off for now because, as President John Mahama said, the “priority is for energy production for now”.

The project, which started in July 2012, is moving from the engineering to the testing and commissioning phase. President Mahama observed that “the multiplier effect of this project would be enormous” for Ghana’s economy.

President Mahama said the expected benefits to the country from the plant will be an economic "game changer". He observed,

“This project is much anticipated by Ghanaians. It is going to be a game changer. It would even help our macroeconomic stability in terms of reducing the pressure on our foreign exchange reserves. It would save us almost half a billion dollars a year in light crude purchases, and another billion dollars in foreign exchange savings for the purchase of light crude oil.”

Looking into the future, President Mahama spoke of the economy’s bright prospects in the medium term, and was optimistic that work by Tullow Oil at Tweneboa-EnyenraNtomme (TEN) and projects undertaken by the Italian oil giant ENI would help the country’s oil production move up to about 200,000 barrels a day, and also produce more gas to help boost energy generation.

The TEN project comprises oil fields located in the Deepwater Tano licence, which covers an area of more than 800sq km, and lies

around 20km west of Tullow’s Jubilee field. In 2013 the Ghanaian government approved a plan of development for the TEN project, which is expected to cost US$4.9bn and deliver oil by mid-2016. It is expected that, when production starts, it would grow steadily to 80,000 barrels of oil per day.

Development of the TEN Project requires the drilling and completion of up to 24 development wells which will be connected through subsea infrastructure to a floating production, storage and offloading vessel (FPSO), moored in approximately 1,500 metres of water. Contracts for the FPSO have been awarded. Subsea tenders are in the process of being awarded and rig capacity for the drilling and completion of the development wells has already been secured with the West Leo. Francis Kokutse

Airtel Nigeria offers free access to ‘Ebola Info’ Airtel Nigeria in collaboration with Opera Software, has launched a free service for customers looking for information on the Ebola virus.

By zero-rating ‘www.ebolafacts.com’ that provides educational information on Ebola,

Airtel subscribers will be able to access vital information on their mobile phones without worrying about incurring data charges. By clicking the ‘Ebola Info’ pass on the Airtel Nigeria mobile store, users will be directed to the URLs they

Airtel is offering free access to info about Ebola (Image: NIAID)

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African Review of Business and Technology - October 2014

can browse for free to educate themselves on the virus.

Commenting on this initiative, chief commercial officer, Airtel Nigeria, Maurice Newa, restated Airtel’s commitment to empowering Nigerians with access to relevant, up-to-date information that will deepen their understanding on matters relating to the Ebola virus and ultimately assist them to stay safe and healthy at all times.

“As a responsible corporate citizen and key stakeholder, we are deeply concerned about the wellbeing of Nigerians and we will continue to leverage on our robust technological platforms to empower citizens, especially as this is in line with our corporate vision of becoming the most loved brand in the daily lives of Nigerians,” Newa said.

“We have all been following the concerning news of the recent

Chief commercial officer at Airtel Nigeria, Maurice Newa

Ebola outbreak in West Africa and we want to ensure that Nigerians have access to as much information as possible to avoid contracting the virus. We believe these facts should be available freely and conveniently, which is why we are working with Airtel Nigeria to help provide a valuable portal for subscribers to access key details at any time,” said Richard Monday, director for Opera sub-Saharan Africa. www.africanreview.com

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NEWS

Events / 2014 November

12-13

Mining Security & Crisis Management Forum

December

3-7

Cape Town, South Africa www.miningsecurityforum.com

2-3

Africa Oil Week

17-19

Mozambique Industry Forum

Cape Town, South Africa www.petro21.com

Process Mineralogy

5-7

Cape Town, South Africa www.min-eng.com

IFEA

18-19

Johannesburg, South Africa www.specialised.com

WAPIC

5-8

Lagos, Nigeria www.wapicforum.com

NICONEX

20-21

Lagos, Nigeria www.niconex.net

Precious Metals

11-13

Cape Town, South Africa www.min-eng.com

AfricaCom

24-25

Cape Town, South Africa africa.comworldseries.com

Nickel Processing

12-13

Cape Town, South Africa www.min-eng.com

aidex

24-25

Brussels, Belgium www.aid-expo.com

Project Financing in Oil & Gas London, UK www.smi-online.co.uk

Maputo, Mozambique www.mozambiqueindustryforum.com 2-4

GeoPower Global Congress Istanbul, Turkey www.greenpowerconferences.com 7-11

ITU Telecom World Doha, Qatar www.itu.int 10-11

TOC Market Briefing West Africa Tenerife toc-marketbriefing.com 11-14

MS & Africa Middle East Cairo, Egypt www.msafrica.net

Opportunities and challenges in African aviation A two-day summit and exhibition, Aviation Africa is set to take place 10-11 May 2015 in Dubai, in the UAE. Nexus from Saudi Arabia and Wyvern Consulting from the USA have joined up with this event to become main sponsors. The link with these two companies is a perfect fit for the Aviation Africa event, which has launched to address the growth opportunities in the African continent for the aviation industry.

Nexus, which launched in 2010 and is based in Jeddah has opened a regional office in Rwanda and already identified the opportunities the region can offer. Wyvern Consulting is a US company providing safety intelligence data and onsite risk assessments to business and private aviation communities for over 20 years. Nexus are now itsinternational partner covering the Middle East, Asia and Africa regions.

The two-day summit will focus on strategies, opportunities and the challenges affecting the

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There are critical opportunites, as African airlines expand

Aviation Africa is set to address growth in the continent

industry. A key focus area will be the safety challenges in the region. Nexus provides flight operations and support with a massive commitment to safety and with Wyvern Consulting supplying the safety intelligence data, this partnership will have a lot to contribute to this focus area.

Alan Peaford, managing director of Aerocomm Ltd and responsible for creating the summit’s two-day programme, said, “We are delighted

to welcome Nexus and Wyvern Consulting to the Aviation Africa 2015 event. recently visited Nexus at their head office in Jeddah and was very impressed with their level of service across the business aviation sector and their level of commitment to safety, security and people.

We will be covering all these topics in our Summit programme and it is companies like Nexus and Wyvern that will be important contributors to the Summit discussions.”

African Review of Business and Technology - October 2014

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NEWS

Bulletin / Vehicles Land Rover’s new Discovery

MG’s supermini passes tests

Already noted as a versatile and capable

Locally distributed by Mandarin Motors,

premium compact sport utility vehicle (SUV),

part of the massive Combined Motor

the Land Rover Discovery has been

Holdings (CMH) group of companies, the

redesigned with an emphasis on engineering

new MG3 hot hatch has undergone - and

integrity, more space and greater comfort; the

passed - a rigorous on-road durability

first member of the new Discovery family,

validation test of nothing less than three

Discovery Sport, features 5+2 seating in a

million kilometres; intended to deliver

footprint no larger than existing five-seat

impressive levels of body control, sharpness Produced at the Nissan Sunderland plant in England, the new Qashqai arrives in South Africa with a five-model range supported by three engine variants and two trim lines

versatility and practicality to suit the busy and adventurous lifestyles of South African buyers, now at a more premium level than ever before.”

“Our challenge has been to combine premium design with exceptional versatility; the two attributes must work in harmony,” said Gerry McGovern, Land Rover design director and chief creative officer

A classic AMG roadster The Mercedes-Benz SL blends accomplished

premium SUVs, in keeping with a progressive

motoring at the highest level with exquisite

new design approach that defines the new Discovery range with optimised volume, proportions and stance.

Swift sales for Suzuki

The MG3 is distributed by Mandarin Motors, part of the massive Combined Motor Holdings (CMH) group of companies

Sales of the Suzuki Swift in South Africa have

and a willingness to corner to engage keen

been buoyant since the hatchback made its

drivers, MG’s team of chassis engineers have

local debut in 2008, with cumulative sales

also delivered sure-footed handling and

over six years approaching the 10,000 mark;

impressive ride comfort, to make the car suitable for every journey, from crowded Gauteng routes to flowing country roads in Mpumalanga or the Cape or cruising on the highway across the extremes of the South African landscape..

The Qashqai as urban pioneer Following the success of the first-generation Suzuki’s Swift hatchback continues to be popular in South Africa

model, which achieved more than two

The SL 400 AMG from Mercedes-Benz is an all-rounder amongst sports cars

million sales worldwide since its 2007 launch,

style; manufactured virtually completely from

“The Swift remains a key contributor to

the new Qashqai is set to continue success in

aluminium, the roadster also sets the

Suzuki’s ongoing and growing success in

a teh crossover passenger vehicle market;

standards in the category of luxurious

South Africa,” said Francois van Eeden, Suzuki

Nissan South Africa’s product manager for

roadsters with its numerous technical

Auto SA’s national marketing manager, who

passenger and crossover vehicles, Nancy

innovations - and is entirely suitable for

added that buyers are attracted to the car

Reddy said, “Qashqai is a vehicle which can

everyday use thanks to its retractable vario-

because of its quality, efficiency and value.

do it all - it has the space, power, comfort,

roof.

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African Review of Business and Technology - October 2014

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Bulletin / Vehicles A visually striking, premium quality seven-seat SUV

general upgrading of the interior finishes on

“The 6x2 freight carrier market has exhibited

all models.

significant growth over the past five years,

Three years in the making and part of a

rising from about 250 units a year to more

XC90 marks the beginning of a new chapter

Ford’s commercial vehicle range gets three new Transits

in Volvo’s history, capturing its future design

New Transit van and chassis cab variants,

direction, incorporating its own range of new

along with new Tourneo people movers, form

technologies and utilising its new Scalable

the backbone of small and large businesses,

Product Architecture (SPA) technology; “The

with a total of six new derivatives of Ford’s

all-new Volvo XC90 paves the way for a

commercial vehicles; the two-tonne version

portfolio of exciting new cars to come in the

of the Transit panel van is available to

US$11bn investment programme, the Volvo

The Hino 500-Series 2626 has a very high specification level and for many applications it can be considered as a worthy alternative to a more expensive extra-heavy category truck

than 500, so it is important for Hino to have a model to suit this growing demand,” said Hino SA vice president Ernie Trautmann.

The Volvo XC90 offers an outstanding combination of luxury, space, versatility, efficiency and safety

following years,” said Håkan Samuelsson,

Ford’s entire commercial vehicle range for Sub-Saharan Africa is set to become will become the backbone of small and large businesses across the continent

president and CEO of Volvo Car Group.

customers in both medium wheelbase (MWB)

MAN’s certification programme for bodybuilders Thanks to its new Certified Bodybuilder Programme, MAN customers can benefit

or extended long wheelbase jumbo

More features for Foton’s double-cab pick-up

configurations to suit customers’ loadcarrying needs, with both versions retaining

The already very well equipped Foton

the smart load space features that have made

Tunland double cab premium one-ton pick-

Transit a household name outside Africa,

up range has been further enhanced to

complemented by MWB and Jumbo versions

provide even better value for money; the

of the Transit chassis cab, which businesses

latest improvements include the addition of

can tailor to fit their needs - and the Tourneo,

Bluetooth with multi-function controls on the

which is available in 15-seat configurations,

steering wheel of the Luxury derivatives for

offering African businesses a factory-built bus

hands-free communication - as well as a

for safely transporting passengers.

MAN customers can benefit from high quality, complete vehicles developed in collaboration with bodybuilders

An important addition to Hino’s popular range of trucks

from high quality, complete vehicles

A new model has been added to Hino SA’s

bodybuilders, as the programme aims to

popular 500-Series range of trucks in the form

simplify work flow and has already led to

of the 6x2, long-wheelbase 2626 freight

quicker, more reliable order processing and

carrier, which has an excellent payload

shorter delivery times; the online Bodybuilder

capability, a fuel-efficient powertrain and

portal (www.man.eu/aufbauhersteller) is

Hino’s highly competitive lifetime costs -

home to the information platform “MAN

extending the 500-Series range to eight

ABBI”, the technical portal “MANTED”, and

The Cummins ISF engine, which powers all the Tunland double cab models, develops 120kW of power at 3,600r/min and 360N.m of torque at 1 800r/min, is one of the few power units fitted to a pick-up in Africa, which complies with Euro IV emission regulationsy

16

developed in collaboration with

models including a tipper and a four-wheel

“Trucks to go” - and also includes details of

drive model as well as various freight carriers;

the new Certified Bodybuilder Programme.

African Review of Business and Technology - October 2014

www.africanreview.com

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NEWS

Bulletin / Vehicles Geely’s Loadhopper represents a no-nonsense option The gutsy Loadhopper range of small pick-ups from Geely are great run-arounds, and they are still available at rock bottom prices.

The DFSK Loadhopper offers unrivalled value for money for a nononsense light commercial vehicle with a load capacity much higher than its specified half-ton capacity. Boasting a load box of 2m by 1.3m, the Loadhopper with 13” wheels can easily handle a payload of 600kg.

Because of the classification of light commercial vehicles in South Africa, this bakkie is classified as a half-ton unit.

“The Loadhopper packs a heavy punch when it comes to work load,” said Devon Nassif, sales and dealer development manager of the Dacar Motor Corporation, importers and distributors of Geely passenger and DFSK light commercial vehicles.

“Our many loyal customers operating this gutsy little bakkie refer to it as a ‘trailer with its own engine’. It really is the ideal vehicle for

The DFSK Loadhopper offers unrivalled value for money for a no-nonsense light commercial with a load capacity much higher than its specified half-ton capacity

anything from garden rubble and miniloads to collections, deliveries

means running costs are kept at a minimum because of low

and general transport of basically anything.”

maintenance costs.”

Nassif also highlighted the excellent after-sales support available for

As far as performance is concerned, the Loadhopper 1.3 averages a

Geely machines. He said, “Service parts are really affordable, which

fuel consumption of only 8,2ℓ/100km.

www.africanreview.com

African Review of Business and Technology - October 2014

17

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WEB SELECTION

African Review/On the Web A selection of product innovations and recent service developments for African business Full information can be found on www.africanreview.com

Nigeria pushes for Indian investment Indian investors can benefit by focusing investments in Nigeria, according to finance minister Olusegun Aganga.

Aganga spoke about Nigeria’s trade and investment climate during an interactive session conducted by the India is planning to sign a Free Trade Confederation of Indian Agreement with ECOWAS (PHOTO: CII) Industry (CII) in New Delhi, India. According to the minister, there exists huge potential for trade between India and Nigeria in sectors such as pharmaceuticals, power, energy, agriculture, iron and steel.

In addition to having a conducive business climate, Aganga said Nigeria had the 11th largest oil reserves and eighth largest natural gas reserves in the world, and the country has been perceived as having a solid macro-economic environment. africanreview.com/financial/economy/

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China to transfer renewable energy technology to Ghana China to work on a US$2.7mn project with Ghana to transfer renewable energy technology to the West African nation.

Officials from the the Chinese and Ghanian governments consolidated the partnership, according to a report from the United Nations Development Programme (UNDP).

Entitled ’China-Ghana-South-

South Cooperation on Renewable Energy Technology Transfer’, the alliance marks the objective of the Chinese government to transfer renewable energy technologies that will ideally suit the needs of Ghana, such as solar and wind for irrigation, biogas, mini hydro and improved cook stoves. africanreview.com/energy-apower/renewables/

From political liberalisation to economic empowerment From its genesis in 1980, the Southern African Development Community (SADC) has blossomed into a robust regional economic bloc that is helping Africa gain prosperity and economic growth.

Jacob Zuma, President The 34th SADC Summit met in Victoria Falls, of South Africa, at the Zimbabwe from 17-18 August 2014. The SADC Summit held last month in Zimbabwe. theme of the summit was ’SADC Strategy for (PHOTO: GovernmentZA) Economic Transformation: Leveraging the Region’s Diverse Resources for Sustainable Economic and Social Development through Beneficiation and Value Addition’. africanreview.com/financial/economy/

Africa registers 4.3 per cent increase in construction machinery exports

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African Review of Business and Technology - October 2014

The Association of Equipment Manufacturers (AEM)’s mid-year construction machinery report saw Africa report a 4.3 per cent increase in exports for the first half of 2014.

While Canada, Central America, South America, Australia/Oceania, Asia and Europe all reported a decline in exports, Africa reported a hike in exports with the continent generating US$682.1mn.

Overall, construction machinery exports fell globally. In the first half of 2014, the report said that exports were at US$8.93bn in 2014, representing a decline of 17.3 per cent from US$10.8bn for the same period in 2013.

Africa purchased construction africanreview.com/construction-amachinery worth US$682.1mn during the first half of 2014. (PHOTO: Doosan mining/machinery/ Construction Equipment) www.africanreview.com

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BuSinESS

Commodities

Structured markets for stakeholder growth Since 2008 and the opening of the Ethiopian Commodity Exchange (ECX) in Addis Ababa, the concept of structured agricultural products’ trading has been taking hold across Africa

E

leni Gabre-Madhin is truly a force to be reckoned with. Having studied at Cornell University in the US, she gained invaluable experience working at the World Bank, the UN and the International Food Policy Research Institute. Gabre-Madhin then returned to her homeland, Ethiopia, determined to put her economist experience to work.

What she had realised was that African agricultural producers, generally small-holder enterprises, with a lack of dependable marketplaces and the ability to raise capital, faced significant problems in securing true, fair value for their harvests.

She had noticed that many producers were being continuously cheated by middle-men traders. So, the pioneer of African agriculture commodity markets determined to launch the Ethiopian Commodity Exchange (ECX), liaising and negotiating with both the private and public sectors to get the project off the ground.

She managed to raise capital of US$5mn from Morgan Stanley, the International Finance Corporation, and 8 Miles, Bob Geldof’s pan-African private equity fund.

The ECX offers spot trading in a number of agricultural commodities such as wheat, maize, haricot beans, sesame and, most importantly, coffee.

The market’s turnover now amounts to more

Open outcry bidding at the Ethiopian Commodity Exchange

than US$1.2bn each year, serving some three million Ethiopian farmers who are represented by around 200 co-operative organisations.

The key to the ECX’s operations is the establishment of 17 delivery centres and 57 warehouses across the country. These

EAX is focusing on a warehouse receipt system that can offer collateral so that banks can extend finance to producers - and Equity Bank and KCB have agreed to participate in its Real Time Gross Settlement system; moreover, the EAX has opted for a digital trading platform, having installed NASDAQ OMX proprietary trading soware” 20

African Review of Business and Technology - October 2014

warehouses have a 300,000 metric tonnes storage capacity for producers to safely store their products as well as to obtain receipts that enables them to access credit from banks.

The market now has 11 partner settlement banks and the in-house open-outcry, spottrading system accounts for the 600,000 metric tonnes of commodities, on average, traded daily, with a typical value of US$1.2mn.

In order for the warehouse receipts system to work efficiently, it was important to develop grades and standards to give traders confidence in the products they purchased ‘blind’ at the ECX. As Gabre-Madhin puts it: “A country embarking on a structured trading system, such as a commodity exchange, needs to www.africanreview.com

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BuSinESS

Commodities

have a legal and regulatory framework that can protect the integrity of the transactions.”

From the outset, the ECX was hugely successful and this led Eleni Gabre-Madhin to co-found the eponymous private company, eleni LLC, that has specialised in the establishment of new commodity exchanges across Africa.

The plan is to establish agricultural commodity markets in Cameroon, Nigeria and Mozambique; but more immediately eleni LLC is launching the Ghana Commodity Exchange, scheduled to open for business in early 2015.

Gabre-Madhin says that while she was getting the ECX up and running, she consulted with 18 other countries that had an interest in setting up exchanges. She explains: “We set up eleni LLC to help them do it,” and adds that she is hoping that by 2020 her company will have built up to a dozen exchanges across Africa.

It will use a public-private partnership model for her exchanges. Already eleni LLC is talking to the governments of Angola, Kenya and Sierra Leone about setting up agricultural commodity markets. But GabreMadhin is emphatic that each market must be designed to meet the requirements of their particular nations.

Nevertheless, the long-term vision must be to establish a pan-African linkage of markets that, with regional harmonisation, can facilitate cross border trading.

Gabre-Madhin is on record as saying: “If we get it right and set up exchanges across the continent we can link them up to create a solid, critical world reference price, especially for commodities where there are common interests like cotton or cocoa in West Africa, or coffee in East Africa.

“The world would use those to discover prices for African commodities,” she added.

“That cannot do anything but good for Africa’s production and for Africa’s economies.”

There is a regional vision behind GabreMadhin’s competitor, the East Africa Exchange (EAX). Officially launched in July (but under development for a couple of years), its parent company is Africa Exchange Holdings, backed

by Tony Elumelu’s Heirs Holdings; Berggruen Holdings; 50 Ventures; and Ngali Holdings.

Africa Exchange Holding’s stated business model is to become the leading commodities exchange in East Africa, a region where agriculture amounts to 27 per cent of GDP and where three quarters of the population of more than 130mn are employed in agriculture.

Like its competitor eleni LLC’s Ethiopian Commodity Exchange, the EAX is focusing on a warehouse receipt system that, as a financial instrument, can offer collateral so

22

Eleni Gabre-Madhin specialises in developing commodity exchanges

Dr Kadri Alfah, the chief operating officer of the East Africa Exchange

that banks can extend finance to producers.

Regional banking giants Equity Bank and KCB (formerly Kenya Commercial Bank) have agreed to participate in the EAX’s Real Time Gross Settlement system.

African Review of Business and Technology - October 2014

But unlike the ECX, which relies on a trading floor, open out-call bidding, and its own trading software, the EAX has opted for a digital trading platform, having installed NASDAQ OMX proprietary trading software.

The EAX market has already signed-up 18 brokers and 42 traders and have selected maize, beans, coffee, pyrethrum (an organic pesticide) and tea as the commodities it will initially trade in.

Spot trading has yet to begin, although the EAX began auction trading in maize and beans in 2013. Visiting the EAX headquarters in Kigali, Rwanda, African Review learned that the market is confident that it will begin spot trading by the end of 2014, a prelude to the futures contract trading that will follow.

Dr Kadri Alfah, the chief operating officer of the EAX, has been working to establish commodities markets for many years. He had worked under Gabre-Madhin at the Ethiopia Commodity Exchange as a United Nations technician responsible for establishing the market’s risk controls.

Next, working under contract for USAid, through ACDI- VOCA (an institution formed by the 1997 merger of Agricultural Cooperative Development International and Volunteers in Overseas Cooperative Assistance) he moved to Ghana where his specific responsibility, as chief executive officer of the Ghana Grains Council (GCC), was in developing the country’s warehouse facilities and warehouse receipt systems, as well as establishing appropriate grades and standards. This is a crucial factor when buyers are at a distance from producers and cannot assess the quality of a crop first hand. As Alfah states, “you can only commercialise grains when you have standards”.

For the Ghanaian producers, who usually have to sell their crop at harvest time, when the market is glutted and prices are low, the creation of a warehouse receipt system was a welcome development.

Their grains could be delivered to the warehouses, inspected, cleaned, graded and certified and stored in GGC-certified warehouses that meet Ghanaian and international standards.

Once graded and certified, the commodity that has been delivered to the warehouses can be used as collateral by participating banks in Ghana – the Agricultural Development Bank, CCH Finance, Stanbic and Ecobank.

A similar plan of action is underway in East Africa where the establishment of 14 warehouses managed by the EAX has been achieved, and the East African Community has issued the criteria for a new harmonised set of standards for 42 staple foods. ■ Stephen Williams www.africanreview.com

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nigeria

BuSinESS

nigeria’s new gas n

igeria’s growth has been stable for more than a decade. The country has been thought to have an erratic economic engine, with GDP bouncing around from year-to-year, according to movements in the price of oil. Historically, this was an accurate assessment. Before the fiscal reforms of the past decade, government spending was determined by the price of oil. If the price was high, budgets swelled; if it fell, spending was cut dramatically and the effects were felt across the economy.

The Nigerian government continues to depend on revenue from the oil and gas sector for three-quarters of its income, but budgets now are calculated using a long-run average benchmark oil price, and surpluses are paid into the Excess Crude Account. The implementation of this budgeting approach has been far from perfect, but the overall results have been less volatility in both government spending and GDP.

www.africanreview.com

“By capitalising on its strengths and positioning itself to take advantage of emerging global trends, Nigeria could potentially triple its GDP by 2030,” says Acha Leke, a director in McKinsey’s Nigeria office.

“This adds up to a huge opportunity for inclusive growth that should not be missed.”

Research undertaken by McKinsey indicates that there is immense potential in trade, agriculture, infrastructure, and manufacturing. Above all, however, the success of oil and gas remains vital to the Nigerian economy. With the right reforms, liquids production could increase from 2.35mn barrels a day on average to a new high of 3.13mn barrels a day by 2030, contributing US$22bn to GDP by 2030.

Natural gas output could grow by as much as six per cent per year, adding US$13bn to GDP by 2030. In total, the oil and gas sector has the potential to contribute US$108bn per year by 2030, up from US$73bn in 2013.

Acha Leke, director of McKinsey in Africa, and a member of the McKinsey Global Institute (MGI) Council

However, this assumes that the sector is successful in dealing with current obstacles such as security and can attract fresh investment. ■

African Review of Business and Technology - October 2014

23

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BuSinESS

Angola

A Total commitment to Angola's environment Energy firm's efforts towards achieving the sustainable production of three million barrels of oil per day by 2017

i

nternational energy player Total manages oil field operations in Block 17 in Angola - one of the first deep-offshore blocks to be licensed in the country. Total began operating a major deep offshore development called CLOV, located 140km offshore Luanda, midway through 2014. With a production capacity of 160,000 barrels per day, CLOV will develop proven and probable reserves of over 500mn barrels. After Girassol, Dalia and Pazflor, CLOV is the fourth floating production storage and offloading (FPSO) unit on Block 17.

“CLOV is a flagship project for Total. It demonstrates the Group’s capacity to successfully start-up projects on time and within budget while mastering cutting-edge deep offshore technologies and keeping safety and environment a top priority,” commented Arnaud Breuillac, president exploration & production at Total. “CLOV will contribute to increasing the Block 17 production to 700,000 barrels

Total in Angola

24

African Review of Business and Technology - October 2014

per day while also generating significant free cash flow for the Group.

Block 17 will therefore become Total’s most prolific production site and bring us a step closer to achieving our production potential of three million barrels per day by 2017.”

Developing four fields (Cravo, Lirio, Orquidea and Violeta), the project comprises 34 wells and eight manifolds connected by 180 km of subsea pipelines to an FPSO unit at water depths of 1,100-1,400m.

Measuring 305 metres long and 61 metres wide, the FPSO has a storage capacity of 1.8mn barrels of oil. The gas produced on CLOV will be exported via a subsea line to the onshore Angola LNG liquefaction plant.

CLOV, a show-case for the industry A subsea multiphase pump system will be used deep offshore to enable production of two different oil qualities from the oligocene reservoirs and the more viscous miocene reservoirs. A first for Total at this depth, this system will be used to boost the commingled fluid and enhance oil recovery. The FPSO design minimises its environmental footprint, with zero flaring under normal operating conditions and an “all electric” concept to increase on-site energy efficiency by producing only the quantity of electricity required to operate the facilities.

As part of Total’s commitment to increasing local content in its projects, a significant part of the CLOV development work was carried out in Angola. This represents more than 10mn man hours achieved in-country to complete fabrication and assembly on Angolan yards.

Total operates the block with a 40 per cent interest, and its partners are Statoil (23.33 per cent), Esso Exploration Angola (Block 17) Limited (20 per cent) and BP (16.67 per cent). Sonangol is the concessionaire for Block 17.

Total Exploration & Production in Angola Total has been present in Angola since 1953. In 2013, Total’s equity production amounted to 186,000 barrels of oil equivalent per day (boe/d). Most of this production comes from Blocks 17, 0 and 14. At the end of 2013, Total operated close to 600,000boe/d, making it the country’s leading oil operator. Total’s principal asset in Angola, deep offshore Block 17 (40 per cent, operator), consists of four major zones: Girassol, Dalia, Pazflor and CLOV. Total also holds a 30 per cent operated interest in the ultra deep offshore Kaombo development located on Block 32. A final investment decision was made in April 2014 to develop Kaombo’s estimated reserves of 650mn barrels via two converted FPSOs with a total production capacity of 230,000 barrels per day. Additionally, in the deep offshore Kwanza basin where Total holds interests in three blocks, the group is drilling pre-salt targets. ■ www.africanreview.com

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The African Solution for Africa s challenges ANGOLA MALAWI MOZAMBIQUE SOUTH AFRICA CAPE VERDE SÃO TOMÉ AND PRÍNCIPE ZAMBIA ZIMBABWE GHANA UGANDA

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Africa is a natural market for the Mota-Engil Group given its presence in the continent for more than 6 decades. As Mota-Engil Africa, it develops an extensive range of activities in areas such as engineering and construction, environment, logistics, energy, transportation concessions and mining.

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BuSiNESS

Angola

Emerging opportunities in a mineral-rich country Angola, sub-Saharan Africa’s third largest economy behind Nigeria and South Africa, is gradually opening up to foreign investors

A

ngola is likely, thanks to oil and heavy infrastructure spending, to “remain one of the strongest economies in Africa and it is full of potential and fast-growing business opportunities,” said Geoffrey White, chief executive of conglomerate Lonrho, which has several projects in the country. But operating costs are significantly higher compared to peer countries – with a heavy bureaucracy.

An oil-fuelled boom and huge public investment worth about US$150bn in the past decade has laid foundations for a broader economy. Much of the non-oil sector (led chiefly by services) is thriving – growing at 7.3 per cent/year over 2009-13, according to the International Monetary Fund (IMF). The construction boom in Luanda, affluent Capital city, reflects the frenzied activity across the wider economy, with new skyscrapers, hotels and highways been completed. During 201113, an estimated US$4.1bn of foreign investment went into real estate, with Brazilian and Chinese companies leading the construction of new towns.

In 2013, German car manufacturer Porsche opened a luxury showroom in Luanda. Angola is seeking to attract hotel investors to develop a mega US$7bn project for its Luanda waterfront, ‘the LLHA’. Annual growth in tourism is expected to exceed 7 per cent over the next decade. Presently, tourism contributes just 3.4 per cent of GDP, less than half the African average of 8.5 per cent.

“The non-oil sector is growing faster than the oil industry, which is a very good sign. It shows that the country is achieving some results in terms of diversifying the economy,” said Jose de Lima Massano, former governor of Angola’s Central Bank. The IMF believes medium-term prospects are favourable thanks to large non-oil sector’s investment and policies to improve the business environment.

That, in turn, should generate much-needed diversification and job creation, mainly in agriculture but also in electricity,

26

manufacturing, and services. Angola has one of the world’s youngest populations, with almost half under age-15, hence the need for developing human capital and skilled labour force. As diversification drive intensifies, the non-oil economy is expected to bolster GDP growth by expanding at robust 9.7 per cent in 2014 – based on IMF figures.

Stable investor environment The National Private Investment Agency (ANIP) – recently created to approve foreign direct investment (FDI) – provides tax benefits for investing in certain industries.

Investors must first apply to the Central Bank to import capital, followed by company registration and finally obtaining a license from relevant Ministry. The entire process takes few months compared to few days in Rwanda.

ANIP reported that several multinational firms – with interests from retail to hospitality – plan to establish a US$2.5bn commercial development project in Luanda Bay. Pedro Coelho, CEO Standard Bank Angola, said: “We have already seen interest from construction and cement companies and some agribusiness is starting up.” Angola receives about US$10bn/year of FDI, according to the Economist Intelligence Unit (EIU). Dr Elizabeth Stephens, head of credit-political risk at insurance brokers JLT Group, explained: “Angola is considered relatively safe. There are no terrorist threats. When you look at Ghana, the oil sector has not come onstream as quickly as anticipated and in Uganda there have been issues related to the expropriation of assets. When compared with that, Angola is considered quite safe.”

New private wealth from trading of oil and diamonds as well as a lucrative services industry is being created at a rapid pace. The dollar Millionaires’ club is exploding. Data from the Oxford-based consultancy, New World Wealth, reveals that in Angola, the number of high-net-worth-individuals

African Review of Business and Technology - October 2014

(HNWIs) has grown 68 per cent between 2007-13 to 6,400 – the region’s fourth highest after South Africa (48,700); Nigeria (15,700); and Kenya (8,300). The country’s richest woman is Isabel dos Santos, daughter of the President, whose net worth is tentatively put at US$1.9bn – mostly invested in Portugal.

New openings Several foreign banks are keen to get a ‘foothold’ in Angola. South Africa’s Standard Bank is the only foreign lender (so far) with a full banking licence – besides Portuguese banks. Ecobank and Standard Chartered have representative offices in Luanda. Foreign banks will mostly look to tap corporate banking market. London-based banker put it: “Ultimately, if a bank wants to say it is in subSaharan Africa, it has to be present in a place like Angola.”

Reflecting emerging ‘middle-class’ population, the use of credit/debit cards has soared and mobile banking is gaining popularity among account-holders, whilst banks are expanding their networks of ATMs and point-of-sale terminals, which barely existed in mid-2000s. The EIU predicts that Angolan banking sector’s growth will be the fastest in Africa, with total assets reaching US$263bn by 2020 (up from US$59.7bn in 2013), depending on the level of financial deepening. The new forex law could also signal the liberalisation of the capital account, which would permit major Angolan banks to tap global capital markets.

Strong possibilities also exist for fund managers in ‘high-margin’ businesses such as offshore syndications, project and structured trade financing, asset-backed securities, global wealth management for HNWIs and institutional clients such as pension funds, and the placement of private debt and equity, as well as advising on mergers and acquisitions (M&As) and treasury products for commodity hedgers, including currency, credit and interest rate swaps. www.africanreview.com

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Business

Angola

Later this year, the government plans launching a maiden Eurobond. Private equity funds are bullish on Angola, which boasts some of the largest banks, such as Banco Angolano de Investimentos and Banco de Poupanca e Credito; mobile operators (Movicel and Unitel); and breweries (Cuca) in Africa as well as five-star hotels and construction firms led by Portugal’s Mota Engil, among others.

One new source of business should derive from the Sovereign Wealth Fund – the Fundo Soberano de Angola (FSA) – due to become operational this year with a seed capital of US$5bn; government has pledged to inject US$3.5bn/year into the Fund. In June 2013, a press release by FSA outlined its investment strategy: half of assets will be allocated to fixedincome instruments and cash (including bonds issued by sovereign agencies, supranational institutions, large companies with investment grade credit ratings, and, additionally, in equities issued by G-7countries). The other half will be channeled towards alternative investments (including bonds from emerging markets, commodities, agriculture and mining, infrastructure, property, BRICS and frontier market stocks, assets).

Angola continues on a path of strong growth, with single-digit inflation and a strong

Fact File on Angola Capital: Luanda Area: 1,246,700 km Population: 21.47mn Nominal Gross Domestic Product (GDP), US$124.2bn GDP per capita: US$5,964 Real GDP growth: 6.8 per cent

Luanda, capital of Angola (Photo: Max Brotto)

CPI inflation: 9.3 per cent

international reserves position, as well as stable exchange rate. Its future is bright, if vast potentials of ‘pre-salt’ reserves in ultra-deep waters, minerals, hydropower, agriculture, forestry and fisheries are fully developed. The new mining code will help revive investment in large reserves of iron ore and copper.

Professor Paul Collier of Oxford University neatly summarised, “Angola has got a lot of land without too many people. There’s a trajectory of rising oil revenues pretty well regardless. So, it’s really quite an easy situation to manage.” The challenges of creating a modern sophisticated non-oil economy are considerable. ■ Moin Siddiqi, economist

Currency: Kwanza 97.5 per US$1 Exports, f.o.b. US$68.06bn Imports, f.o.b. US$26.33bn Largest sector: Oil industry (40.5 per cent of GDP) Labour force: 7.6mn Foreign exchange reserves: US$33.18bn Sovereign credit ratings: Ba3 (Moody’s), BB- (Standard & Poor’s and Fitch) Proved oil reserves: 12.9bn barrels Oil output: 1.71mn bpd Solid minerals: diamonds, copper, gold, iron ore, lead, zinc, nickel, silver.

Source: International Monetary Fund; World Bank; and OPEC (figures for 2013)

M. H. Al Mahroos at Big5 Founded in 1930, Mohammed Hassan Al Mahroos is a Bahrain headquartered construction and industrial equipment trading company. It is a leading reliable source providing world-class engineering and technological products & services in the Middle East.

The Big5 is the largest building & construction show in the Middle East, which will be hosted from 17th till 20th of November, 2014 at the Dubai World Trade Centre, Dubai, UAE. During this event, the company will showcase access equipment from Genie, US; compact excavators from Yanmar, Japan; compaction machinery from Mikasa, Japan; concrete mixers and construction hoists from Imer, Italy; pneumatic breakers from TOKU, Japan; trailer components from AL-KO, Germany and cleaning equipment from Karcher, Germany. Apart from equipments, the company is also displaying powerful attachments from Hunklinger, Germany; Augur Torque, USA; Miller Ground breakers, UK; Furukawa, Japan with demo and on action activity.

Talal Hassan Al Mahroos, Marketing manager said, “This participation will reflect our commitment to invest in the region and showcase our products alongside international leading brands as the company strengthens its presence in the GCC and is now gearing up to serve African market. We have already grabbed the attention of many leading international manufacturers through their proactive approach and have seen potential opportunities in acquiring further agencies to new and related departments in different countries. This motivates us to expand our showrooms, warehouses, spare parts inventories and workshops to level up to serve our customers.”

At the Big5 exhibition 2014, Al Mahroos is specially honouring its visitors to register at http://big5.almahroos.com to have a priority service from Al Mahroos’ staff and meet its dedicated employees.

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African Review of Business and Technology - October 2014

www.africanreview.com

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Banking

FinAnce

The future of finance for east African farmers increased use of new technologies and innovative approaches in financing smallholder farmers could soon boost growth in agriculture

c

ountries do not reduce their dependence on agriculture by getting out of it, but by getting better at it - and that will happen only if farmers have better access to affordable credit.

There is a clear need to identify the bottlenecks to creating closer relationship between farmers and financiers that can bring about a paradigm shift in the way that finance can unleash the potential of agriculture around the world. There has been significant momentum towards improving access to finance in farming communities. East Africa has led the way, as was demonstrated at the Fin4Ag international conference, held recently in Nairobi, the Kenyan capital, which brought together agriculturalists, financiers, policy makers and other development actors from all over the world, The voices expressing both optimism and caution.

Modern and profitable players Michael Hailu, director of the Technical Centre for Agriculture and Rural Cooperation (CTA), stated, "There is a great degree of optimism that all the actors working together can turn around Africa's agricultural sector into a modern and profitable business that will create decent jobs for millions of young people and feed the continent's growing population."

Mamadou Biteye, MD of the Rockefeller Foundation Africa Regional Office, stated, "As we depart, it is with the unanimous agreement that finance for agriculture is a risk well worth taking for the well-being of African farmers, for the strength of their nations, and for the prosperity of the entire continent."

Encouraging and enabling Millison Nahr, chair of the African Rural and Agricultural Credit Association (AFRACA) and deputy governor of the Central Bank of Ghana, argued that governments need to do more to encourage financial institutions to work more closely with the agricultural sector.

"We need to learn from countries which have been successful in resolving the bottlenecks to releasing funds to agricultural value chains," he said, citing Tanzania's success with Warehouse Receipt Systems and the Nigerian Incentive-based Risk Sharing System for Agricultural Lending, described in detail by the Nigerian Minister of Agriculture during the opening ceremony.

Lamon Rutten, policies, markets & ICT programme manager at CTA, stressed commitment to African agriculture, "CTA wants to play a catalytic role in bridging the gap between agricultural and financial markets. We got the right people together in Nairobi. We saw them discussing what needs to be done to link farmers to financial markets, what the governments and central banks have to do and what farmers have to do." ■

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FiNANcE

Banking

instituting confidence in compliance South African banks must restore trust in the financial system following the failure of African Bank

T

he recent failure of African Bank, and the subsequent Moody’s downgrading of all South African banks, indicates a serious lack of trust in the compliance culture of our banking system.

Realistically, no other South African bank suffers from the systemic rot that seems to have been in play at African Bank over the last several years. According to a recent exposé in Die Burger, African Bank has been guilty of over two hundred transgressions of the National Credit Act - including reckless lending, and abuses related to the in duplum rule - over the last few years.

This raises the question of why the failure of the bank was not predicted some time ago, whether by the auditors, the National Credit Regulator (NCR) or the South African Reserve Bank, and why meaningful action was not taken to stop these practises when they were first uncovered.

Moody’s downgrade is harsh, and arguably, uncalled for. It will add significantly to the cost of capital for the banks, and for government costs that will be passed on to the tax payer and the borrower. One must assume that it is based on their belief that African Banks lending practises, and the lack of any significant consequence prior to the collapse may be replicated in other lenders.

Compliance projects are grudge purchases Executive management has a fiduciary responsibility to minimise unnecessary costs and, in some cases, this may lead to a culture of compliance with the bare minimum letter, rather than the spirit of the law. The complexity of risk management, combined with the need to allow each bank to adapt to their unique circumstances, means that the specifics of compliance, particularly related to the specifics of risk reporting, are open to interpretation.

For many banks, data governance and data quality are still seen as tactical solutions, delivered by IT in the data warehouse, rather than as strategic initiatives designed to ensure trust in the banking system.

Once trust has been lost, these disciplines may be part of the solution to winning trust back.

Documented and shared data policies define the culture of the organisation. Under what circumstances may a loan be granted and what data must be captured to ensure these circumstances have been met? Data quality rules can be implemented to identify and deal with transgressions immediately, or to prove compliance and reduce the monthly reporting burden.

The failure of African Bank may herald an increased focus on enforcement of legislation, as both auditors and regulators seek to regain the trust of the international community. For banks, customer data quality may need to be improved to ensure accurate total exposures can be measured, and to ensure accurate daily reporting to the credit regulators. New international legislation such as Foreign

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South African banks are being urged to improve the way they govern and manage the quality of key risk data.

Account Tax Compliance Act (FATCA), Dodds Franks and the Basel III BCBS 239 “Principles for effective risk data aggregation and risk reporting” are adding to the compliance burden.

An international trend that I am seeing replicated in South Africa is the appointment of a chief data officer (CDO) to take responsibility for data compliance. Yet, this role may prove to be a poisoned chalice if the CDO has to rely on IT for data quality and governance support.

Data management is a specialist skill that is not often a characteristic of the typical IT professional.

Internationally, the CDO drives Data Governance and Data Quality as a business function that relies on key business stakeholders to define and implement data governance policies, data quality rules and the like. The CDO cannot afford to place her success in the hands of IT but must find tools that are accessible to business data owners and stewards. The reasons are simple - external reporting burdens require flexibility, agility and, most importantly, urgency. Business must be able to interpret changes in risk results on a month-bymonth basis, adapt existing reports to meet changing circumstances, measure and report on risk data quality, and explain variations to regulators in order to regain trust.

South African banks are well regulated and we should not expect another catastrophic failure similar to African Bank any time soon.

However, the reputation of the South African banking system must be restored. The data management aspects of compliance can no longer be regarded as surplus to requirements. Banks must improve the way in which they govern and manage the quality of key risk data if they are to restore international trust.

Register for the Improving Risk Reporting in Banking webinar for a discussion on best practice and key challenges for risk reporting, from a panel of four industry experts. ■ Gary Allemann, managing director, Master Data Management www.africanreview.com

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BAnking

infosys Finacle

Transforming banking operations for profitable growth First Bank of Nigeria undertook a new banking transformation strategy called Century II and sought Infosys’ Finacle solution to transform its banking operations. After piloting Finacle for six months, First Bank rolled out the product to more than 170 branches. Akin Fanimokun, COO of the First Bank of Nigeria spoke to African Review about the bank's experience.

Also, CS Vinay, AVP & Regional Manager for Africa at Infosys Finacle, the leading banking solution in Africa, spoke about the company's perspective and plans for the Africa market.

Why was the core banking transformation program a priority for the bank? What were the reasons that prompted this decision?

First Bank of Nigeria’s (FBN) endeavour is to strengthen its position as the most customer-centric bank in Nigeria and make the bank more competitive in the emerging banking landscape in Nigeria. To that end, we continuously seek innovative ways to ensure our customers or users of any of our products or services, achieve their goals in an easy, affordable and comfortable manner. With a new age banking solution, we wanted to provide improved services that would result in a world-class banking experience for both our customers and employees at First Bank. We also wanted to introduce innovative products and services in line with the Central Bank of Nigeria’s (CBN) Cash Lite policy. Process automation, cost containment and service excellence are the drivers of this initiative.

What expectations did the bank have from the core banking transformation program? Did you face any challenges?

We had an agreement with Infosys to implement and launch the Finacle 10 solution within ten months. Any schedule over runs would have directly impacted the project cost budget and we wanted to avoid this. We wanted to maximise utilisation of product features and parameters, and at the same time minimise the customizations. We did encounter challenges more than envisaged, but the good news is that along with Infosys, we surmounted all the issues that appeared like showstopper and implemented Finacle 10.

bank’s growth requirements over the years, our assessment found it prudent to consider an upgrade to a new age banking solution. Some of the features we looked for from a new age banking solution include – improved 360 degree view of the bank’s relationship with our customers, improved customer services across channels, ability to easily and quickly launch new products, easier integration services, in-built local solution needs and enhanced KYC parameters. Finacle 10 appeared the right solution and so it proved. Finacle has an excellent implementation track record in Africa, specifically in Nigeria, with strong local support infrastructure and the sustainable total cost of ownership. The decision was helped by the fact that Finacle version 10 is a globally proven solution, with a reputation for stability.

Capacity for rapid and easy scalability to large transactions volumes. Finacle also offered a lot of flexibility in terms of localisation. With new generation, Finacle version 10 core banking solution, we believe we can significantly improve service delivery across all customer touch points, while empowering our team to effectively comply with regulatory and security requirements.

How did you about your transformation program?

What were your concerns and how did you manage them?

We planned for a roll out based on a ten month schedule, with a big bang approach, where all 600+ branches would go live simultaneously. Our key concern was to ensure minimum disruption to our customers and ensuring an easy, seamless move to the new system. Hence, we put in place meticulous planning and What were your main effective tracking right from the start considerations in selecting a of the program. We had committed solution and a vendor? How did you team from our side and great support go about selecting these? from Infosys Finacle – both worked First Bank was using Finacle V7. Due together as a single team to achieve to changing customer requirements, our objectives. User Education Mr. Akin Fanimokun, Chief Operating Officer and Group Executive, Technology & Services new technology advances and the Training, Detailed Requirement

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infosys Finacle Gathering and Business Process Definition were planned in parallel with multiple tracks at the Infosys location. Our team along with the Finacle team decided to close the pre-data migration activities during discovery phase to reduce time and effort. Deployment of the new core banking solution was smooth and seamless across all the branches of FBN and we ensured uninterrupted banking activities for our customers immediately after deployment. The big bang approach worked to the glory of God. What are the benefits from the implementation of the new core banking transformation solution? Were you able to achieve the original requirements you had started the program with?

The migration has been a win-win for our customers and the bank users. ● The new solution is user friendly, for the customers and bank users. ● It provides bank users an anytime-anywhere unified view of the bank’s structured operational data and a 360-degree view of our customer relationships. ● We achieved significant increase in volume of transactions due to a drastically minimised turnaround time. ● We are enjoying reduced time taken for end-of-day operation.

●

●

BAnking

We have further been able to drive paperless deposits and withdrawals, with enhanced security and convenience for Internet Banking, Instant card issuance at all branches, and facilitate new lines of businesses along with strong financial inclusion measures.

With Finacle version 10, we have a more robust platform, able to accept other applications that make reporting easy.

Overall, the bank is empowered to meet the challenges of managing change, competition, compliance and customer demands effectively. The impact from the improved services on customer loyalty and goodwill for the FBN brand is greatly beneficial.

What are the bank’s future plans?

Continuous customer delight through constant improvement of service delivery is very important. With our new Finacle solution, we have an integrated and modern platform with which we are confident of ensuring efficient and effective customer service for the perceivable future. Of course, our endeavor remains to constantly improve our services, reduce cost, automate our process and service excellence. ■

Infosys Finacle What are the key technology challenges for African banks?

CS Vinay: Banks across Africa are on the cusp of change. Most of the mid tier and top tier banks are ready to grow and are rapidly expanding across the continent either organically or through acquisitions or both. To sustain growth, be efficient in operations, service a wide range of customers, keep them loyal and ensure compliance to cross-border regulatory demands, deploying and leveraging a robust technology platform is a crucial factor.

Most of the banks in the large markets of Africa are in the process of upgrading or replacing their existing systems to meet the burgeoning growth demands. As much as they want to ambitiously grow, planning the right technology ecosystem and allocating necessary budgets within the acceptable time-frame, can at times be a real challenge. But for business to grow in a sustained manner, technology is the key lever. Getting the business act right, deciding what should come first and how it gets prioritized, will be a fine balancing act and a continuously challenge to promoters, board rooms and key stakeholders in African banks.

of a virtuous growth cycle, with one positive effect cascading to the next positive one,creating a force multiplier effect. Therefore, the prospects for the African banking market, at this point in time, has endless opportunities.

What is Finacle’s approach for Africa?

CS Vinay: With rapid economic growth happening in many African markets, the financial system, especially banks, need to automate quickly to be more and more efficient. This opens-up a huge opportunity for a globally successful universal banking product like Finacle. Africa is among the most exciting geographies to be a part of across the entire emerging markets space. Africa also has a special place being Finacle’s first overseas market outside of India and today over 20% of Finacle’s global customer base is from this region.

Finacle is present in 18 countries in the region powering over 3,500 branches, 38 million customers and 47 million accounts.

In a very focused way we have built an excellent partner network across markets. Our partners are empowered to recruit and train local talent, who in turn provides How do you view the prospects of the Africa service and support on an on-going basis to the banking market? customers in the market. This not only helps bring a CS Vinay: Like in any growing economy, strong local flavour for a global product, but also financial systems have to be built which will form generates employment opportunities, helping local the edifice of the entire economic growth story. For industry to grow. any financial system to be stable and sound, a good For Finacle today, the Africa business runs like a banking framework, with all the necessary checks well-oiled machine, with excellent delivery and support and balances, will have to be in place. Since many of team, a resource pool of product experts, coupled with the African economies, both big and small, are on the a direct client engagement model dedicated to the growth path, there will be changes happening across region. This ensures continuous support for our the banking segment. Along with economic customers, helping address business-as-usual growth, many central banks across the challenges to disruptively grow their continent are focused on policies for business. We have our plans in place and enhancing Financial Inclusion. This will require we look forward to growing our Africa banks to enhance their reach and bring the presence multifold in the coming years. vast unbanked and under-banked population First Bank of Nigeria, also referred to as into the banking institutional framework. Such FirstBank, is Nigeria’s largest bank and inclusivity will open-up new market segments financial services company by assets. Akin for banks and create new horizons for growth.

Fanimokun is the Chief Operating Officer So, the African banking market is in the phase CS Vinay, AVP & Regional Manager - Africa, Infosys Finacle of the First Bank of Nigeria. ■

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African Review of Business and Technology - October 2014

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TechnOlOgy

Printers

inkjet or laser: which is best, and when?

With an increasing ‘green’ awareness, printers are still an essential office tool - and the choice of printer still affects office productivity

P

rinters are common in both the workplace and home. Although many businesses are working towards a paperless environment with the increase in ‘green’ awareness, printers are still an essential office tool. A common question asked when purchasing a printer for the home or office is whether to purchase and inkjet or laser printer. Each printer is unique to various environments and have their own pro’s and con’s, however, the needs of the user will ultimately decide on the printer of choice – inkjet or laser.

The needs of the user will ultimately Purchasing a printer for the home or decide on the printer of choice office is no simple task and various considerations need to be taking into account before this purchase is made.

The key question to ask oneself is whether a laser or inkjet printer suits your needs, and which device will benefit you in the long run. User can generally distinguish the main differences between inkjet and laser, however, it can be difficult to establish which one is right for you. transferring to the In the past, the cost per page (CPP) with an sheet of paper. Inkjet, on the other hand, inkjet printer far outweighed the CPP of a laser. works by making use of heat. Simply put, an According to rechargermagazine.com, the ultra-fine nozzle is connected to a reservoir of “CPP can be determined by calculating the ink, with a small heating element at the front cost of a printer cartridge divided by its yield”. of the nozzle. When the printer is switched However, with the emergence of new and on, a bubble forms inside the nozzle and a improved inkjet technology, one can tiny drop of ink is expelled at a high speed. increasingly see inkjet printers competing The heating element is switched on and off in with, and sometimes beating, laser printers response to the data from the computer, on this issue. Understanding the differences which processes the image from the file. and target markets for each printer will offer Laser printers are designed for large office users more insight as to which printer would environments or departments requiring high suit their environment best. print volumes. Initial investments in laser printers may be higher than inkjet printers, Functions and processes however, the CPP was far less when compared Laser printers make use of toner cartridges to inkjet printers, especially if the print that contain ink powder. Through an electro volumes are high. On the other hand, inkjet photographic printing process, laser beams technology traditionally lent itself to the scan the surface of photo-sensitive drums to smaller office, home office and consumers. form a latent image. The toner is then affixed This is mainly due to its small form factor, to non-charged areas of the drums, saving these environments space. developing the latent image and finally Furthermore, the initial investment of inkjet is

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far lower than that of the laser, however, the liquid ink used in these printers are more costly than toner and cater for low print volumes. Therefore, the laser printer offered organisations with a lower total cost of ownership (TCO) than that of the inkjet printer.

However, the emergence of new and improved inkjet printers, along with multifunctional printers (MFPs) are blurring these lines when choosing a printer. Due to new technology, inkjet printers are now providing a significantly lower CPP. This technology is further leading to the use of these printers within the larger office environment, and not solely for the home user and consumer.

Furthermore, with the emergence of connectivity, inkjet printers are now also providing users with the ability to print from anywhere by making use of a smartphone, tablet or other mobile device.

This is further changing the game within the printing arena.

Choices and needs In conclusion, there are a number of printers available on the market. Choosing between an inkjet or laser printer will depend on your needs. Inkjet printers are still ideal for the small office, home office or consumer market due to the small form factor and the ability to cater for low print volumes. Laser, on the other hand, still lends itself to larger organisations where large print volumes are required. However, with the latest technology in inkjet, these printers are entering the large print volume market, lowering the CPP and aligning with the CPP of lasers. It is essential to understand your printing requirements and budget before purchasing a printer for your organisation.

Understanding these devices and what they offer will ensure the correct printer is selected for your daily printing needs. ■ www.africanreview.com

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Data TECHNOLOGY

Nigeria’s new eID card H

is Excellency President Goodluck Jonathan now has a National eID card.

He’s part of an eID pilot programme, which, in its pilot phase, sees the Nigerian Identity Management Commission (NIMC) issue MasterCard-branded identity cards with electronic payments functionality to 13mn Nigerians. The programme is the prodcut of collaboration by NIMC (as project lead), MasterCard (payments technology provider), Unified Payment Services Limited (payments processor), Cryptovision (public key infrastructure and trust services provider), and pilot issuing banks including Access Bank Plc, This initiative is the largest rollout of a biometric-based verification card with an electronic payment solution in the country and the broadest financial inclusion programme in Africa.

The eID card forms a key component of the Nigerian Identity Management System, deployed by NIMC as part of its mandate to create, maintain and operate the country's

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Nigeria’s new National eID card

first central National Identity Database and provide proof of identity to Nigerians 16 years and older. With 13 applications, including MasterCard's prepaid payment technology and Cryptovision's biometric identification technology, the eID card will provide millions of Nigerians - the majority of whom have never had access to a banking product - with the security, convenience and reliability of electronic payments. President Jonathan said, "I am happy that this important milestone of the rollout of the National Identity

Management System has been realised today.

I am impressed with the quality of the eID card and the work of the corporate partners that made it possible. I commend especially MasterCard, and Access Bank Plc, as well as the Commission [NIMC] for achieving a world-class product."

He said the card builds a window to a social security benefit system and, therefore, it is a card every Nigerian should get.

NIMC is working with several government agencies to integrate and harmonise all identity databases including the driver's licence, voter registration, health insurance, tax, SIM and the National Pension Commission (PENCOM) into a single, shared services platform.

Barr Chris 'E Onyemenam, director general and CEO of NIMC. "There are many use cases for the card, including the potential to use it as an international travel document, which will have significant implications for border control in Nigeria and West Africa." ■

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TECHNOLOGY

Data

Imagery from information How turning visual systems can enable and support superior decisionmaking in many industrial environments

H

igh-tech computer applications for data management, mapping, modelling and imagery are helping SRK Consulting in KwaZulu-Natal, South Africa, to present large amounts of data in a more accessible, visual format - so clients and stakeholders can quickly understand the information and are able to make informed and better project decisions.

Integrating information SRK brings together data from various elements of a project - such as planning, geotechnical, environmental and social - into a geographical information system (GIS) framework to create highly detailed spatial images, according to James Morris, partner and principal civil engineer in SRK’s Durban office.

“This allows the information to be communicated more easily within multi-disciplinary project teams and especially to non-technical users,” Morris said. “We have found that the data is far easier to understand and explain when presented in a more visual way - on a local or regional map, for instance. When this information is only in text, tables and graphs in a thick report, it can be very daunting and time-consuming to digest; the significance of key data can also be difficult to extract.”

The systems developed by SRK are then integrated with the company’s decision-making tools, so that the improved understanding of selected decision criteria and technical information can help decision makers in considering the available options.

“Whether in the private or public sector, those with the duty and authority to make decisions must have a firm foundation of evidence on which to base their choices,” he says. “By using high-tech solutions to integrate the necessary data, we can ensure that the best options are highlighted, and this makes for well-informed decisions and better impact.”

Non-technical stakeholders may include financial officials, municipal councillors, and a range of interested and affected parties; this method of sharing project plans and details is also beneficial to

Aerial View of Canal Upgrading through the Industrial area of Rana Road, Isipingo

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African Review of Business and Technology - October 2014

Front (sitting): Left-James Morris, Right - Angus Bracken Back from the left to right - Nic Brien, Keagan Allan, Raven Kisten and Murray Sim

contractors working on the project itself, who often prefer to see a visual representation of what needs to be done.

The value in visual impressions Mapping of data using spatial (GIS) tools is used both for analysis and prediction, says Morris. Where water quality in a river could be negatively impacted by a proposed settlement, for instance, data on existing conditions can be modelled and compared to possible future conditions. The predicted results can then be plotted in colours on a map of the area, with a scale of colours showing levels of negative and positive impact.

“A data-rich visual impression is then able to quickly convey those areas where there are challenges or where better options are available,” he says. “Our clients frequently display these maps in their offices to inform their ongoing discussions, and to share the issues with other stakeholders. It is particularly beneficial when working with

An extract from a high-tech data collection tool, using a web-based inspection toolkit allowing for fast and reliable collection of data in the field. Used for the inspection of infrastructure in the rural environment www.africanreview.com

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TECHNOLOGY

Data

infrastructure projects, as much of the work we do on infrastructure is spatially related.”

The ability to integrate data seamlessly and represent it simply is also key to the efficiency of the project team, says Morris: “SRK’s expertise covers a wide range of disciplines on a single project, so this technology supports our multi-disciplinary approach, which can draw from SRK experts in other offices worldwide.”

Working on a rural groundwater supply project in the Amajuba District Municipality of KZN, SRK has also applied high-tech methods while making sure that their findings and recommendations are effectively communicated to clients and affected parties.

“In doing an assessment of groundwater resources in rural areas for a local municipality, for instance, we have taken a more regional approach which will optimise sustainability and water quality,” says principal hydrogeologist Raven Kisten. “This is an innovative departure from previous practices, where boreholes have generally been drilled without a full understanding of the area’s water balance or aquifer characteristics.”

Using remote sensing and an interpretation of geological structures and faults, SRK has completed a catchment-scale assessment in the Amajuba area; this identified areas with high groundwater potential for well-field development, offering a more sustainable water supply and quality. The work lays the foundation for production boreholes to be integrated with bulk groundwater supply schemes with larger footprints and appropriate maintenance and groundwater monitoring programmes.

Building capacity In their presentations to council officials and public representatives, says Kisten, it is useful to show the extensive project-related data on maps rather than just in reports, and this allows for ongoing capacity building among stakeholders.

An aerial image indicating a geological lineament identified through remote sensing techniques as well as the proposed drilling targets identified

“We spend a great deal of time conducting highly sophisticated assessments,” says SRK partner and principal civil engineer Murray Sim, “but we then need to convey the essence of our results to decision-makers and sometimes also the public. While a plain cadastral map is not always well understood, we can map our data in layers and provide images that make it much easier to show the current situation and future options.”

While used mainly in planning, these mapping tools can also be used for diagnosing problems, says Angus Bracken, partner and principal engineering geologist based in SRK’s Pietermaritzburg office. In a project to investigate technical problems occurring with some of the houses in a nearby settlement, the area was analysed by overlaying a range of maps - including geological, soil, topographic, drainage and geotechnical data. This facilitated the process of examining the factors that could affect the

Example of a Suitability Index Attribute Map (SIAM) indicating areas which are suitable for development. Red areas are not suitable, green are suitable for development and expansion

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African Review of Business and Technology - October 2014

integrity of the buildings,” says Bracken. “After helping us to identify the causes of the problems, the mapping techniques can now be used to ensure the problems are avoided in the future - as the maps can show quite clearly which areas are more suitable for housing purposes.”

In a recent project at Isipingo, south of Durban, historic satellite images were vital in helping SRK solve a regular flooding problem for the eThekwini Municipality emanating from a wetland between the highway and the coastline.

"Having modelled the catchment area of the wetland and assessed the drainage infrastructure, we then compared satellite photographs from year to year and discovered that one of the property owners bordering the wetland had over time caused a significant blockage to the main drainage channel," says SRK principal civil engineer Nic Brien. "This was not obvious due to overgrown vegetation and limited previous knowledge of the wetland's layout. However, the consequences of this blockage was such that even a moderate storm would cause flooding."

Based on this assessment, works are underway to implement a new drainage path comprising a concrete canal installed on the side of the wetland, as well as the upgrading of a number of culverts and canals in the industrial area where most of the flooding occurred.

“The solution not only addresses the flooding but also reduces the silt deposition that resulted in the clogging up of the wetland,” says Brien. “During major storms, the majority of the silt will now bypass the wetland via the canal, with the concrete base enabling easier dredging when required.” ■ www.africanreview.com

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TECHNOLOGY

Vehicles

Moving out of the way of miners Promoting best practice and new technology to improve health and safety in the mining industry

B

ooyco Electronics’ development of collision-warning systems dovetails with the general trend in the South African mining industry to opt for increased mechanisation and automation and control.

“Our approach with collision-warning systems has always been to be able to adapt the same equipment for multiple functions, such as for fully-fledged access control,” Anton Lourens, managing director, said.

“Obviously cost is a major driver, as mining houses do not want to double up on unnecessary technology. Ultimately we are seeing a trend for single, multi-function solutions from a dedicated technology and service provider such as ourselves. We are really committed to offering such comprehensive one-stop solutions.”

Taking notice of technology As Lourens observed, the work being done by Booyco Electronics in this regard “is fairly ground-breaking” and has made the South

Booyco Electronics Biometric Control System

40

African mining industry sit up and take notice.

“The local mining industry does not necessarily want to trial new technology due to the cost and production implications; it prefers instead to appoint a solutions provider.”

This is where Booyco Electronics comes into its own, as it forms a vital link between OEM equipment and total systems.

Booyco Electronics also plays an important role in promoting best practice in terms of health and safety in the South African mining industry. With new legislation imminent in respect of collision-warning systems, Lourens notes that more and more vendors have entered the market in the hope of being able to supply products.

“South Africa is definitely leading the way globally in terms of intervention in a possible incident between pedestrian and machine,” he said.

Demand and supply The client list of Booyco Electronics includes the top mining houses in South Africa, from Anglo American to Rio Tinto. It is these major players who are highly receptive to innovation and technology. The company was established originally in 2006 to supply collision warning equipment for Anglo American’s thermal coal division.

“The particular product we support has actually been designed and manufactured in collaboration between South Africa and Germany. Currently, we are on our fourth generation of equipment. It has been implemented quite successfully.”

Lourens confirmed that Booyco Electronics has designed a range of local products, focusing on telemetry, gas detection and environmental monitoring, which the company believes are quite critical in the South African mining industry. It employs 150 staff at present and is ISO 9001 accredited.

“Our biggest customer contact base on a person-to-person level is the engineering staff, as they are often the first to come into

African Review of Business and Technology - October 2014

A critical element in the design of the Booyco Electronics CWS is its ability to transmit signals through rock in the underground mining environment.

contact with problems on the ground in need of specific solutions. Our approach is that if one customer experiences a particular problem, then the probability is quite high that the next customer will encounter a similar problem. We are really committed to innovation in this regard. We spend quite a big portion of our annual turnover and profit on research and development and continuous product improvement,” Lourens said. “Our core focus is electronic safety equipment. We do not supply run-of-the-mill products such as personal protection equipment. What we often find is that our customers drive us into specific product areas, such as our current innovation of biometric key control. A concern for the mining industry at present is unlicensed people operating machinery, due to the health and safety implications.” ■ www.africanreview.com

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TECHNOLOGY

Automotive

Tiny dots with huge potential Why the use of microdots, also known as datadots, has long been touted as a ground-breaking initiative to track items

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he use of microdots, also known as datadots, has long been touted by the South African government and the South African Police Service (SAPS) as a groundbreaking initiative to track the loss of personal items ranging from vehicles, to cellphones and even children. Originally used to protect casino chips, these tiny dots provide the least expensive, most effective theft recovery and prevention system in the world.

In 2012, government legislation regarding microdots was passed in South Africa, making it compulsory for all vehicles to be fitted with between 10,000 and 15,000 virtually invisible dots containing information which proves ownership of assets by the registered owner, functioning as unique DNA. The need for implementation Organisations such as the Business Against Crime South Africa (BACSA) have been heavily involved in the implementation of the legislation in South Africa during the manufacturing process of vehicles, which are registered with the Department of Transport’s National Traffic Information System (eNatis).

South Africa has between 91,000 and 120,000 vehicles stolen each year. According to a study by the BACSA, microdot technology has emerged as being the leader in securing the identity of the vehicle, with a 91 per cent recovery rate for microdotted models, against a rate of only 52 per cent for non-microdotted models.

According to BACSA project manager David Lekota, standards still need to be regulated and certain vehicle manufacturers still need to implement the fledgling system.

Although response times to incidents of theft are fast, all different parts of the vehicle need to be registered in order to prevent criminals from quickly disassembling the vehicles and selling the components to scrapyards.

“We know that microdotting has a huge positive impact, but regular standards for its usage still need to be established. We are

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definitely making headway and hope to tweak the system so it can work to its full potential,” Lekota said.

BACSA CEO Graham Wright agrees, explaining that any motor vehicle part or component can be marked with a dot as the technology is “pervasive and enduring”.

“This means that the police can now identify parts from stolen vehicles even if the vehicle has been 'chopped up' for the illegal spare parts market. Microdots are the most costeffective, easy to use and enduring technology available in securing and preserving the identity of a motor vehicle,” said Wright.

Application and organisation Microdots are applied using an ultraviolet adhesive and contain a microscopic 17-digit laser-etched VIN or PIN to identify the vehicle and, in turn, its owner. This number is only visible through a magnifying lens under an ultraviolet light, and can be applied both covertly and overtly, making it far more difficult for thieves to remove or conceal the microdots, or strip parts of the car for resale.

One of the main focal points of the initiative is to mitigate the impacts of the Trio Crimes, violent organised crimes which include residential robberies, business robberies and hijackings. The deplorable and often vicious

African Review of Business and Technology - October 2014

nature of these crimes threatens the safety and security of citizens in their homes, businesses and commuting between the two.

Alternative identifiers have proved to be unreliable, as vehicle identification numbers, engine numbers and licence numbers are swiftly removed by increasingly savvy criminals, but microdots are virtually impossible to remove. Community police forums and organisations such as DataDot are working to fight the infamous trio crimes through integrating legislation, technology and community participation. DataDot developed the technology and have since pioneered it throughout South Africa and the rest of the world, working side-by-side with the SAPS and BACSA for the past 13 years. In March 2014, DataDot reported in a press statement that 17 per cent of all vehicles in South Africa had been fitted with the dots since the company was established in the Western Cape town of George.

It was slow and steady from this point and the first real indication that DataDot would be a viable technology in South Africa came during 2003; when car rental company Avis took up the product for their fleet of vehicles.

Nissan and BMW shortly followed by fitting all their vehicles, and over 16,000 SAPS members were trained in its use, making it a real tool in the fight against vehicle crime.

Toyota, Volkswagen, Mercedes-Benz, Land Rover and the taxi industry have since jumped on the bandwagon.

A DIY version of the technology is also available, and is simply applied to the items the user wants to protect. The contents of each unit have a unique code, which the owner registers under his/her name on a national database so that if an item is stolen, it can be identified and returned. They can be purchased, registered and applied quickly and easily, and it takes only one dot to trace the owner. ■ Dale Hes www.africanreview.com

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TRANSpORT Shipping

Facilitating trade with freight management Developments emerging from a key event on East African trade, transport and logistics, held for the first time by SCEA in Nairobi

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he Shippers Council of Eastern Africa (SCEA) has been earnestly preparing to host the inaugural Trade, Transport & Logistics Conference (TTLC) at the Safari Park Hotel in Nairobi, Kenya on 29th & 30th October 2014. The TTLC aims to congregate importers & exporters; logistics service providers; information, communication & technology (ICT) solutions providers; policy makers and development partners to deliberate on trade facilitation challenges and how these could be overcome through use of modern systems and technology.

Apart from displaying their products and solutions, exhibitors shall participate in pre-arranged business-to-business meetings between themselves, solution providers and delegates. The exhibitors should expect to benefits hugely from the expected audience of approximately 300 delegates from the east Africa region who will obviously view the products and engage the exhibitors in one-on-one discussions that should help in business planning and process solutions.

Engagement with key stakeholders Mr Gilbert Langat, SCEA chief executive officer, explained that participation in the conference should benefit both exhibitors and delegates who shall form part of the team that shall draw an advocacy agenda on technology adoption in the region and with which the Council can then engage government, private sector and development partners and which when finally implemented should improve efficiency in the region’s logistics chain network and operations.

According to Mr Langat, it is pertinent that the Mombasa Port which has never really been competitive be made competitive to attract more investors into the region which, now with oil & gas, is a frontier for investments.

Mr Gilbert Lang'at CEO at SCEA

Standard Ash Manufacturing Plant at TCML--Extractive industries and manufacturers such as Tata Chemicals Magadi Ltd who export bulk products and also import equipment and machinery are also expected to benefits much from more reliable and efficient operations at the Mombasa Port and also from better movement of the products courtesy of better logistics

Currently with 67 per cent and 33 per cent of its cargo as imports and exports respectively, the port is expected to keep attracting even more cargo. The port needs as much support as possible and planning geared at the long-term. The northern corridor is also important and must be developed more given that it serves the landlocked Rwanda, Burundi and Uganda and parts of northern Tanzania. The SCEA’s 2012 East Africa Logistics Performance Survey reveals that cargo remained at Mombasa Port for five days after docking of ships, due to clearing systems inefficiencies marked by frequent downtimes of obviously poor ICT infrastructure. Yet efforts to upgrade systems are afoot. Kenya has undertaken to have a single electronic window system that will avoid delays met in lots of paperwork and bureaucracy.

Mombasa Port's Community Charter The Kenya Revenue Authority (KRA) is also upgrading its Simba system to handle more cargo entry and exit while Rwanda also upgraded her customs system in 2012. Uganda has also embarked on her clearance and customs systems upgrade to enhance efficiency and these efforts are indicative of the region’s determination and readiness to embrace ICT for improved and efficient processes and procedures.

Moreover, operations at the Mombasa Port should now be further boosted following adoption of the Mombasa Port Community Charter and guidelines Dashboard which are expected to enhance infrastructural development and clearing of goods at the port.

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www.africanreview.com

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TRANSpORT Shipping According to President Uhuru Kenyatta of Kenya, who officiated at the Charter launch, it commits both public and private parties operating at the port to measures that shall increase the Port and Northern corridor efficiency.

“The Charter outlines in clear details initiatives that we expect to play a substantial role in unlocking trade potential in the whole of our region. It also commits to the reduction of turnaround times in the Northern corridor; the integration of all port community members’ systems into the Kenya National Electronic Single Window System; and the attainment of 70 per cent cargo output routed through the green channel by 2016,” explained President Uhuru. This is expected to improve transport along the Northern corridor to Uganda, Rwanda and Burundi from the Mombasa Port.

According to Dr Chris Kiptoo, country manager at Trade Mark East Africa (TMEA), one of SCEA key partners that has invested KSh4.6bn (US$52.391mn) to improve efficiency at the Mombasa port, the partners are in initiatives to improve logistics and thus create an ample environment for business people. This will also reduce transport costs and ensure benchmarking against internationally recognised practices.

“Investors are keen to have a viable business climate and these efforts seek to address the challenges that investors face in doing business in Kenya and most of eastern Africa,” Mr Kiptoo added.

While the cost of doing business in the US and Europe is about four per cent, this rises to about 40 per cent in Kenya and once this project is fully implemented, it will reduce the time of clearing goods at the Mombasa port by about 15 per cent and border- to -border travel by 30 per cent. The port is expected to handle 44mn tonnes of cargo yearly by 2025 from the current load of 22.5mn, a reality that demands change in infrastructure for its actualisation.

The Community Charter allows several regulatory bodies including the Kenya Bureau of Standards (KEBS), Kenya Ports Authority (KPA) and the Kenya Revenue Authority (KRA) to work from a single platform a reality that is expected to facilitate faster clearing of goods from the port.

“Exporters shall get more returns on investments and the cost of imports shall also reduce,” Mr Kiptoo observed at the launch. “We live in one of the fastest growing regional economic bloc but also one of the most expensive in the world. We are keen to remove this contradiction and enable residents benefit more from their businesses and returns on their investments,” Mr Kiptoo added.

Mr Langat, who also chair of the Community Charter commended the Kenya government and its partners efforts to improve logistics performance through better roads & railways, airports and the improved port. He said, “As a main trade hub in the EAC region, Kenya’s potential as a transit country has not been fully utilised. Consequently, an effective, efficient and well-integrated multimodal logistics framework and infrastructure is a pre-requisite in meeting demands of the EAC economies that are increasingly characterised growth and integration.”

Advancing trade through the Northern corridor Guided by the maxim, ‘Advancing trade through the Northern corridor’, the Mombasa Port Community Charter is described as an ‘aid for trade initiative to support international seaborne trade through the Mombasa Port Corridor for economic growth and prosperity’.

Its mandate is to establish a permanent framework for collaboration that binds the port community together for specific actions, collective obligations, targets and timeframes; complement the individual institutional service charters in addressing the challenges that bar trade facilitation along the Mombasa corridor; introduce, educate and publicise to all stakeholders the industry customs and practices embraced by the port community in order to rightfully influence all persons involved in international trade in the region and develop & implement a self-monitoring and evaluation mechanism for collective

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Manufacturers such as Weetabix East Africa can expect to greatly benefit from more efficient port and logistics operations

community obligations. Some of the goals it has set include transforming the Mombasa port into a high performing landlord port by 2016 as benchmarked with Netherlands, Rotterdam port; achieving an average of 120,000km per truck per annum (benchmark - world class standard of 150,000kms/truck/year); grow cargo off-take by rail to above 35 per cent of throughput by Dec 2018 (benchmark: DurbanJo’burg corridor, South Africa); increase liquid bulk holding capacity to 11,000,000MT by Dec 2014 (benchmark- Rotterdam Port); integrate all port community members’ systems into the KNESWS (Kenya National Electronic Single Window System) by Dec 2014 (as is the case in Singapore Port, Singapore) and achieve 70 per cent cargo throughput through the green channel (like in the Port of Felixstowe, UK).

Some of the high level initiatives undertaken so far include those for infrastructure, operations, synergy & coordination development and legislation & oversight institutionalisation. Some key performance indicators in place include vessel turn-around time; cargo dwell time; cargo take-off; system availability; logistics cost as a percentage of cost of goods; average no of kilometres per truck per annum; 24hr service availability; on-time execution of planned initiatives; material errors & violations attracting fines; revenue leakage; percentage of imports through the green channel and closure of identified gaps in legal frameworks.

As the next steps to completion of the project are undertaken (with various assumptions in place), some measures and drastic momentum building initiatives have already been put in place to ensure a robust transformation take off and some early wins have been identified; these include relocation of Commissioner of Customs Services to Mombasa; adoption of 24hr operations at the port; the KPA Managing Director now administratively in-charge for all port operations and government support of transporters by allowing a five per cent tolerance on the allowable axle load limits.

Other wins include upgrading of the KRA’s SIMBA and KWATOS systems in readiness for integration into the KNESWS; expansion of the CFSs (container Freight Stations) to include handling of exports, transit containers and bulky cargo from now and henceforth; and KPA’s availing of a transshipment yard at Berth no 19 and Roro area. While agencies such as the KRA, BEBS and KPA have signed agreements to conduct joint cargo verification at set times, several road blocks and weigh bridges have been removed and both Uganda and Rwanda customs officials have also been stationed at the Mombasa port in efforts to implement a single customs territory. The charter architects are confident that timely and sustained execution of selected initiatives shall be critical in realisation of the expected benefits. ■ John F N Ng’ang’a www.africanreview.com

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Aviation TRAnspORT

Returning to West African skies There is serious commitment towards the return of a full-fledged national airline for Ghana

Mrs Dzifa Attivor, Ghana’s Transport Minister

The return of Ghana Airways improve regional, subregional and international air transport services

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hana is not an industrialised nation yet, but a bold and methodical attempt coupled with tenacity of purpose is expected to place the 25mn population of this West African country nearer to achieving its economic ambitions.

The nation’s current economic paradigm is now being re-directed towards more homegrown than import-driven industry, after decades of economic instability.

However, the government of Ghana’s President John Mahama has resolved to put structures in place to pave the way for a selfreliant economy, rekindling the spirit of patriotism and exhibition of practical homegrown development policies in members of government, willing to reverse the current economic malaise to one of prosperity and stability.

Ghana is going through one of the most difficult economic periods in its history, with the national currency plummeting about 40 per cent against the dollar this year.

Employment has been impacted. State organisations, which served as incubators for growth under Ghana’s first President, Dr Kwame Nkrumah, in the early 1960s, are now virtually defunct - but for Ghana Airways, one of the defunct organisations to be given utmost priority for speedy re-instatement by government, there is indeed movement in the right direction. www.africanreview.com

Ghana Airways was founded on 4 July 1958 by the nation’s government, with a start up capital of 400,000 pounds sterling; the government holding a 60 per cent stake, with British Overseas Airways Corporation (BOAC) holding the remainder. It commenced operations on 15 July 1958. The airline ceased operations almost five decades later, in 2004 and, in 2005, it was liquidated after failed attempts to bring the national carrier back in the air. In May 2010, there was an attempt by the Ghanaian government to enter into a public-private-partnership (PPP) arrangement for the revival of the national carrier, under the name Ghana International Airlines (GIA), but the enterprise was not to be and eventually had to be terminated.

Political backing for a full return to business True to its commitment of a massive homegrown economic policies, the government has recently signed a US$30mn loan facility under a PPP with the World Bank, which part will be used for re - instating the defunct Ghana Airways.

It must be noted that Ghana Airways coming back into full operation will in no doubt improve regional, sub-regional and international air transport service, with its accompanying massive foreign exchange returns for the state thereby contributing significantly to the country’s macro-economic

stability. The government must however be cautioned that air traffic is increasing phenomenally and becoming extremely competitive in recent years and that is the more reason why it is imperative for government to collaborate with the private sector (investors who have the expertise in air transport) in order to develop an enduring model for such a re-instatement initiative with the view to maximising profit and avoiding another episode of collapse of the national carrier in future.

However, bringing back Ghana Airways cannot be the final solution to the numerous challenges facing the Ghana air transport system. Cognisant of the fact that the country’s airports in other selected regions are yearning for massive rehabilitation to meet international standards.

Mrs Dzifa Attivor, the Transport Minister recently assured that government was planning to construct a new airport for Nsuatre in the Brong Ahafo Region but was not specific on its commencement. In the government 2014 budget, it promised all the regions of Ghana with an airport. Indeed, the promises of government could be well – intentioned but implementing them at a reasonable pace will undoubtedly increase the confidence of the citizenry. ■ Emmanuel Yartey

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TRAnspORT Aviation

Asky opens African skies Gervais Djondo, the founder of Asky Airlines, discusses his vision of panAfrican connectivity, beginning with links across West and Central Africa Asky Airlines was established with pan-African aspirations

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ervais Koffi Djondo is one of the pioneers of regional and continental integration in Africa. One of the founding fathers and now the Honoury Chairman of , Ecobank, the African bank with the biggest African footprint with a presence in 35 countries, he has also turned his attention to creating a truly pan-African airline.

Like Ecobank, Asky Airlines is headquartered in Lomé, Togo. Djondo, who is a Togolese citizen, served his country in various economic and social capacities before being made the Minister of Public Enterprises and Privatisation in 1984. It was his ministry that created and launched Lomé’s Free Trade Zone, the first of its kind in West Africa.

A new airline for Africa With the demise of Air Afrique in 2002, Djondo realised the need for a new panAfrican airline to be established. But unlike Air Afrique, Djondo believed that the only way to create a viable airline, free of political interference, was to found a private entity.

Djondo told African Review that part of Asky’s remit was to stimulate Africa’s share of international commerce and inter-Africa trade.

“When it comes to inter-African trade, which is less than 14 per cent of the continent’s commerce,” he said. “Africa’s private sector should play a key role in integration development. After all, Asia’s regional trade is around 65 per cent of its total, Latin America’s is almost 30 per cent. We think from a business point of view that to

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access commercial finance and linkages we should have institutions and companies that help us to come together.”

It was with this thinking that he gathered around him a team that set up the Promotion of Regional Airlines Company in 2005, which later entered into a partnership agreement with Ethiopian Airlines to launch Asky Airlines in 2007. Asky commenced commercial flights in January 2010.

By last year, Asky had carried over a million passengers, and Djondo says that his airline is currently serving over 10,000 passengers a week, representing more than an 80 per cent average capacity over its 23 destinations network – a remarkable achievement for an African airline that faces operating costs and taxes in Africa that are among the highest in the world.

“In Africa, airlines tickets are very expensive,” Djondo said. “If we talk about tax, what the government puts on taxes, its between 40 to 50 per cent on the price of tickets – and that made tickets very, very expensive.

“We’ve spoken to governments across Africa to see how we can improve that in order to put less tax on tickets because that would help also tourism,” he adds.

With its fleet of latest generation Boeing 737-700s and Bombardier Q400NG (Next Generation), Asky uses Lomé’s International Airport as its hub headquarters – a location that is ideally placed between West and Central Africa.

Currently undergoing a US$150mn

African Review of Business and Technology - October 2014

modernisation and expansion programme, capacity at the airport has increased by 20 per cent.

Much of that capacity is taken up by Asky that has four times as many seats to and from Lomé as the airports second largest airline, Air France. Asky has a 63 per cent share of all passenger traffic to and from Lomé. Asky also enjoys a monopoly on seven of its top 10 routes.

Success, from east to west The success of Asky is, Jondo reiterates, is largely due to the strategic partnership with Ethiopian Airlines. Ethiopian is the one of the most venerable airlines in Africa. It began operations in 1946, pioneering an East-West African service in 1961, linking Addis Ababa with both Monrovia, Liberia and Accra, Ghana via Khartoum, Sudan.

Today, Ethiopian Airlines, which doubled its initial 20 per cent stake in Asky and now holds 40 per cent of the enterprise, flies daily from Addis Ababa to Lomé where it links with Asky’s network of West and Central Africa destinations. This relationship provides valuable international feeder traffic for the Ethiopian carrier.

Three times weekly, the Addis Ababa – Lomé flight, operated by Ethiopian Airlines, extends across the Atlantic to Rio Janeiro and Sao Paulo, Brazil, under a codeshare arrangement with the Togolese airline.

But the strategic partnership between Asky and Ethiopian Airlines goes much further than www.africanreview.com

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Aviation TRAnspORT simple codeshare arrangements. “It’s like a marriage,” says Djondo. “We may have our differences from time to time, but we work things out, disputes get sorted out as we go along. It’s worked extremely well for some years, and we will celebrate our fifth anniversary on the 10th January 2015, and plan to extend the relationship in future years.”

The partnership clearly has huge advantages for Ethiopian Airlines that has expanded its ‘reach’ across West and Central Africa, and for Asky that, by joining forces with the giant African airline, can enjoy the hugely valuable economies of scale that allows it to negotiate for new aircraft and fuel at competitive prices.

There are also other advantages for Asky.

When I asked Djondo about aircraft servicing, he confirmed that all of Asky’s fleet are sent to Addis Ababa, to the Ethiopian Airlines service centre.

Bombardier Aerospace has appointed Ethiopian Airlines as an authorised service facility (ASF) for its commercial aircraft customers. The Canada-based aircraft manufacturer has authorised the carrier to provide line and heavy maintenance service on Q400 and Q400NG turboprop aircraft at its Bole Airport engineering facility. This workshop employs an all-Ethiopian workforce of more than 750 qualified technicians and support staff.

Working together The partnership also extends to the training of pilots and cabin crew. Djondo told me that initially Asky’s Human Resources department had looked to the staff that had been laid-off from Air Afrique, but more recently the company have trained their own people at the Ethiopian Airlines’ specialist aviation school in Addis Ababa.

This kind of co-operation is exactly what Djondo believes Africa’s aviation sector should develop. “What the industry needs

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Gervais Djondo, the founder of Asky Airlines

today is people coming together, as we have in our cooperation with Ethiopian Airlines,” Djondo said. “What we need are good politics, the kind to bring people together. The airline business needs a lot of capital, especially for start-ups in the early years.

“But every country seems to want their own airline. The problem is that more and more of these companies have been state owned companies, and the various countries are not able keep financing these companies.

“We’ve seen it with Ghana Airways, Nigeria Airways, even Air Afrique. But states continue to form state-owned airline companies, and even if these companies provide a short-lived staus, these are lucky to last three or four years at the most before the losses mount up and the finance dries up. They never go beyond that.”

So, Djondo believes that the only way for African aviation to prosper is for the various companies to come together. “I believe that in West Africa, perhaps only Nigeria with its 160mn population stands any chance of operating a state-owned flag carrier. The rest

of us must join together and co-operate.”

However, co-operation amongst African states over the aviation industry, has been in short supply. This is bought into focus with the saga of the implementation of the 1999 Yamoussoukro Decision. Otherwise known as the ‘African Open Skies’ agreement, the idea was to deregulate Africa’s aviation sector.

But even if countries signed up to this bold idea in principle, in practice it has failed miserably. As Djondo explains: “I can tell you, for example, that for three years Asky could not fly to Senegal. I had to wait for the change of government before I could make that happen.

“Another example is the case of Ouagadougou and Abidjan. You can fly from Lomé to Ouagadougou, Burkina Faso via Mali or Ghana, but Asky could not get authorisation to carry passengers from Burkina Faso to Côte d'Ivoire because of the way those two countries organise their aviation sector to protect their domestic carriers. This is a nonsense, but we are working towards resolving it, slowly-slowly, and hopefully it will happen.

“As I mentioned, I want to bring these companies together. I think that it would be the best way to solve our problems. We should move away from states creating their own companies and running into serious difficulties that result in the loss of huge amounts of money. I also think we should look at the example of liberal countries where airline companies work together, and that way it will enable us in time of problems to carry on and let the states do their own business and the companies can prosper without having to suffer the same loss. If we can find the way to come together, I think it’ll be much easier to sort out problems. People would be better-organised, and we would be more competitive within Africa, and internationally.” ■ Stephen Williams

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pOWeR

Compressors

Adding value with after-sales service Dedicated service forms an essential part of the success of industrial blower and compressor supply specialist Airgas Compressors

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irgas service manager Bart Harmse knows that after-sales and technical support services are extremely important in maintaining the efficiency of a plant. As he said recently, “A major differentiating factor that sets our range of Aerzen blowers and compressors apart from the competition is the high quality of product that is backed up by unrivalled after-sales and technical support.”

Airgas boasts a team of dedicated mobile service technicians that cater to all clients’ onsite service needs in Southern Africa. These services include machine servicing and repair, as well as the supply of spares. Harmse states that the onsite support offered by Airgas is a benefit to clients, as it substantially reduces downtime at the plant.

“The mobile service technicians travel in fully equipped service vehicles, which offer clients a far more efficient alternative to sending their machines away in order to be serviced. The main objective of the mobile service technicians is to determine the condition of all machinery and strive to maintain them to their original standard,” he observed.

Trained to serve Airgas offers clients standard and comprehensive service offerings.

Standard service involves the replacement of consumables such as filters and oil. Comprehensive service is required when rotating elements inside the machine, such as bearings and seals, have worn. If a machine is run until the elements wear, it is taken to the Airgas service centre in Johannesburg, South Africa, to be repaired.

Furthermore, Airgas has trained its technicians to capture vibration readings, which are used to undertake condition monitoring in order to predict in advance any possible failures of the rotating elements that could occur. By being pro-active, costly catastrophic failures are prevented.

An important aspect of the after-sales and technical support services that are offered by Airgas is educating clients on how to maintain their machines. In order for clients to benefit fully from the service contracts, Harmse highlights the fact that Airgas involves them in the entire process.

“In addition to the after-sales service, Airgas assists clients in selecting the correct machinery for a specific application, thereby ensuring optimal performance. The client informs us of their requirements, and the Airgas sales team advise them on the size of the machine, volumes, pressures and the motor sizes that are best suited for that particular application,” he said.

Client experiences Machine and plant failures lead to unnecessary and costly downtime, and Harmse reveals that Airgas has built up a pool of rental machines to ensure that clients do not suffer unnecessary losses or delays while a machine is being serviced.

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The Airgas field service fleet

One of the Airgas field service vehicles, ready for action

Harmse said, “If a client experiences failure on one of their machines, they have the option of using a rental machine from Airgas until the unit has been repaired.”

In addition to offering rental machines, Harmse points out that Airgas encourages its clients to purchase a spare machine to replace machines during failure, in order to ensure that the plant does not stop production for longer than necessary.

“We consider ourselves as partners in our clients’ business, and their operations are as important to us as it is to them. We consider their success our success too, and our dedicated after-sales and technical support services have resulted in a number of satisfied and loyal customers,” he stated. ■ www.africanreview.com

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POWER

Gensets

Africa’s genset market is slow, but promising The demand for diesel generators in Africa is robust, according to the latest statistics. Unreliable, inadequate power from the electricity grids in countries across the continent is the biggest factor driving the market. However, the price of fuel is an enduring issue for diesel generator consumers.

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he African power rental market was valued at US$1.8bn in 2013 and is projected to reach US$4.3bn by 2019 an impressive compound annual growth rate of 13.7 per cent - reaching almost 24 per cent of the current global rental market, valued at US$18bn, according to Navigant Research. In the case of Africa, the power rental market is dominated by diesel genset, gas genset, and other genset types, that account for 64.5 per cent, 25.2 per cent, and 10.2 per cent respectively of the market and provide peak load, base load and standby power, reported Micromonitor May 2014.

In addition to the rental market, ownership of power generators is not insubstantial.

Eskom, the South African state-owned power utility, estimates that there are over 5,000 privately owned or operated standby generators in various industrial, institutional, and commercial buildings in the country.

According to TechSci Research report Global Diesel Genset Market Forecast & Opportunities 2019, the global market for diesel gensets is projected to reach US$19.9bn by 2019. Low power rating diesel genset is the largest revenue generating segment in the global diesel genset market due to high volume usage of these gensets in commercial, manufacturing, power utility, telecom, data centre, mining and petrochemical industries. However, the very high power diesel genset segment is expected to witness fastest growth among all other segments during the forecast period.

PowerGen Statistics, the leading database for the global diesel power generation market, added that the use of diesel generators in Africa continues to grow.

In the first half of the 2014, the value of diesel generator shipments to Africa rose by 17 per cent in comparison with the first half

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The global market for diesel gensets is projected to reach US$19.9bn by 2019

of 2013. The biggest importers of diesel generators in Africa were Nigeria, Angola and Algeria. Nigeria imported gensets ranging > 375kVA worth US$108mn in 2013. Combined they accounted for over a third or 34 per cent of total imports to the region. The most important exporters of diesel generators to Africa were China, the UK and France in ranking order.

According to a report from Frost & Sullivan, a lack of grid connectivity in distant and rural areas - especially in developing countries has prompted end users to retrofit or replace ubiquitous diesel generator sets with costeffective and efficient hybrid power systems.

Latin America and Africa are expected to witness the fastest growth among developing countries.

A senior consultant at Powergenstatistics.com has reported to African Review that there is both caution and optimism with

African Review of Business and Technology - October 2014

regard to the state of the diesel generator market on the continent. “This progression has to be taken with care as it is mainly due to one exceptional shipment earlier this year,” he said in reference to large shipment made from Finland to Kenya in 2012.

“With this in mind, I would say that the market is stable,” he added.

Some experts have made boldly positive predictions regarding the growth of the diesel generator market in Africa in coming years. According to leading market research company GlobalData, which published a major report on the subject entitled Diesel and Gas Generator - Global Market Size, Segmentation and Equipment Market Share to 2020 in 2012, the diesel and gas genset market in Nigeria, for example, had a market value of US$450mn in 2011. GlobalData projects that this number will rise at a compound annual growth rate of 8.7 per cent www.africanreview.com

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POWER

Gensets

between 2012 and 2020, reaching US$950.7mn by 2020.

“According to the company’s latest research, the inability of countries across the African continent to meet the power demands of their expanding industries is resulting in the large-scale employment of electricity gensets, with Nigeria at the forefront of the market,” said GlobalData in a statement, adding that just 45 per cent of the Nigerian population has electricity access.

Furthermore, 90 per cent of industrial customers as well as many non-industrial electricity consumers source power from other means, including use of diesel generators, it added.

“As the reliability of electricity in many African countries is low, and the demand for power high, other nations including South Africa, Egypt, Angola and Algeria are also expected to display strong genset growth in the future. The telecom, manufacturing and commercial sectors of these countries are currently experiencing robust growth and increasing the need for continuous power,” the data goes on to add, “It is predicted that if little is done to improve power networks across Africa, the continent could become the next major growth destination for international genset manufacturers.”

South Africa’s electricity system is constrained as the margin between peak demand and available electricity supply has been precariously narrow since 2008, according to the Economist. In 2008, a number of the country’s coal mines had to halt operations because of power blackouts.

In November 2013, Eskom requested that its largest industrial customers cut their consumption by 10 per cent during peak demand times to avoid unexpected blackouts or load-shedding (scheduled power cuts).

According to Southern African Power Pool (SAPP) 2013 Annual Report, South Africa’s peak demand was forecast to reach 44,005MW in 2013, exceptionally close to installed net maximum capacity. The SAPP forecast has peak demand growing to almost 53,900MW by 2025. According to Bloomberg, Eskom plans to spend US$49bn to replace aging equipment and add new power stations to meet growing demand.

“Nigeria has topped the list of generatorimporting countries for the fourth year in a row, having surpassed others since 2002,” Gbolade Osibodu, chairman of Benin Electricity Distribution Company Limited (Vigeo Holdings), said recently.

He added that Nigeria has all it takes sufficient water, gas and manpower - to solve the country’s power problem. Nigeria is faced with inadequate and unreliable power supply, making it difficult to achieve the required

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Import to top African na ons Algeria (2010)

US$16.8mn

Algeria (2011) Algeria (2012)

US$14.2mn US$3.6mn

Algeria (2013)

US$26.3mn

Egypt (2010)

US$17.2mn

Egypt (2011)

US$13.8mn

Egypt (2012)

US$9.6mn

Nigeria (2010)

US$14.1mn

Nigeria (2011)

US$9.2mn

Nigeria (2012)

US$73.4mn

South Africa (2010)

US$10.2mn

South Africa (2011)

US$15.6mn

South Africa (2012)

US$21mn

South Africa (2013)

US$18.5mn

Diesel genset with output of < 75kVA

Import to top African na ons Algeria (2010)

US$16.9mn

Algeria (2011)

US$27.7mn

Algeria (2012)

US$26.1mn

Algeria (2013)

US$24.7mn

Egypt (2010)

US$61.5mn

Egypt (2011)

US$49.4mn

Egypt (2012)

US$37.2mn

Nigeria (2010)

US$28.3mn

Nigeria (2011)

US$33.6mn

Nigeria (2012) South Africa (2010)

US$52.7mn US$8.3mn

South Africa (2011) South Africa (2012) South Africa (2013)

US$16.4mn US$15.9mn US$14.7mn

Diesel genset with output of 75-375kVA

economic growth and development. Osibodu expressed optimism that ongoing power sector reform would guarantee power supply, adding that post-privatisation challenges such as inadequate generating capacity and transmission limitation must be tackled.

A recent report by GSMA about the power usage of telecoms operators in East Africa also confirmed that demand for diesel generators in the sector is strong. The research found that most on grid sites for telecoms companies in Kenya, Tanzania and Uganda use hybrid diesel generator battery systems and 69 per cent of on grid sites are equipped with diesel generators as a backup source of power. In terms of off-grid sites, 61 per cent have diesel-generator battery hybrid systems while more than a third (34 per cent) uses diesel generator systems around the clock.

African Review of Business and Technology - October 2014

“The poor power infrastructure and limited grid power access has led to relying heavily on diesel generators for off-grid as well as ongrid sites. The diesel generator power is expensive and has become a major chunk of the costs of running a base station sites,” the report added.

Also, a lack of clarity on subsidies and other incentives provided for hybrid power systems discourages some end users in Africa, Frost & Sullivan research revealed. Proper legislation governing installation of hybrid power systems is reducing market potential. For instance, solar and wind power subsidies are extended to hybrid power systems, but do not have legislative supporting literature with specific technical requirements.

In addition, the relatively higher capital costs of hybrid power systems compared to diesel generator sets, and increased costs www.africanreview.com

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POWER

Gensets

incurred while transporting these solutions to far-flung areas can deter uptake.

Import to top African na ons Algeria (2010)

Power shortages underlie diesel generator demand Lack of reliable and reasonably-priced power from the grid is clearly a crucial factor driving demand for diesel generators in Africa. In many countries, there are few signs that the situation will improve in the near future.

South Africa experienced its first blackouts since 2008 in March this year. Rolling blackouts were staged in order to help stabilise the grid and alleviate the immense pressure on the country’s power supply.

Torrential rain in eastern South Africa triggered the extreme scenario; coal for the country’s power plants was drenched and became too wet to use. However, underlying this situation was the poor general state of the country’s power plants, many of which are old and in need of extensive repair jobs. This means that South Africa has a dangerously low margin of spare generating capacity.

Furthermore, the country’s grid is struggling to meet power generation needs despite the fact that demand for electricity in the country is actually growing at a slower rate than expected. In 2012, net power demands in the country came to 249TWh, which was below the 270TWh figure, which the government had estimated. Experts point to rising electricity costs as a likely contributing factor to declining electricity consumption.

US$90.4mn

Algeria (2011)

US$73.4mn

Algeria (2012)

US$50.9mn

Algeria (2013)

US$52.1mn

Nigeria (2010)

US$114

Nigeria (2011)

US$90.1mn

Nigeria (2012) South Africa (2010)

US$108mn US$7.8mn

South Africa (2011)

US$19.9mn

South Africa (2012)

US$23.2mn

South Africa (2013)

US$38.4mn

Diesel genset with output of >375kVA

Meanwhile, in Nigeria shortages in the gas supply at power stations due to pipeline sabotage has lead to electricity output plummeting by a half to just 2,000MW. Even power generation at Nigeria’s full capacity of 4,000MW is nowhere near enough; demand for electricity in Africa’s most populous nation is more than double that figure. Blackouts are disrupting businesses operating in Nigeria on a daily basis.

That said there have been major developments recently to address Nigeria’s crippled power supply. Until September 2013, the country’s energy market had been government controlled for five years. Then

the government concluded the sale of 60 per cent shares in 15 power companies from the state Power Holding Company of Nigeria.

Those who purchased stakes included not just local oligarchs but also international heavyweights like Siemens AG and Korea Electric Power Corporation. Nevertheless, it remains to be seen whether the privatisation of the power industry will signal positive developments for Nigeria’s power industry.

Experts are not expecting a transformation overnight.

Therefore demand for diesel generators looks likely to remain extremely robust in Nigeria for the foreseeable future.

Cat’s new fully-electronic marine generator set Caterpillar Marine launched the Cat C4.4 ACERT generator set for commercial vessels at the 2014 SMM Exhibition, held recently in Hamburg, Germany. Designed to provide essential, non-essential or emergency power across a wide range of commercial platforms, the C4.4 ACERT is a fully-electronic power solution delivering improved transient response and better load acceptance. It offers rated power of 65-99ekW @ 50Hz and 60-118ekW @ 60Hz. “The new C4.4 ACERT shares the same design strategy with the C7.1 ACERT and was engineered to incorporate an eighteen percent increase in power density,” Seth Charna, Caterpillar Marine product definition engineer noted. “We will continue to sell and support the mechanical C4.4 platform but are pleased to offer customers with specific emissions requirements an electronic configuration of this popular marine power provider.”

Designed for fail-safe operation, the ease of use of the C4.4 ACERT is one of its most praised attributes. Other significant benefits include long service intervals and a simple installation process. The C4.4 ACERT is a complete factory package generator set and has accumulated thousands of hours in rigorous validation testing, proving the durability of its legendary Cat yellow performance iron.

The C4.4 ACERT will be offered as MCS approved in late 2014.

Manufactured in the United Kingdom, the new C4.4 ACERT is equipped with a high pressure common rail system and an optional EMCP 4.2 electronic control panel. The customizable C4.4 ACERT can

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The new fully-electronic Cat C4.4 ACERT generator set

be tailored to meet customer-specific needs with a wide range of factory-fitted and globally-supported options and accessories.

“As a complete Cat packaged solution the C4.4 ACERT generator set offers customers full electronic control, with industry leading power density and low cost of ownership,” Matt Wilson, Caterpillar Marine sales & marketing manager said. “Customers will also note the significant smoke reduction and improved fuel consumption in the new model.” www.africanreview.com

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Gensets Fuel prices less of a problem for diesel generator users, but still a concern Although businesses in Africa will clearly continue to rely on diesel generators to meet their power needs, the price of fuel needed to operate diesel generators remains a challenge although global oil price volatility has decreased in recent years. Reuters has reported that Benchmark Brent crude has traded US$5 either side of US$110 per barrel since the summer of 2012 and volatility has dropped to the lowest levels recorded since the establishment of the crude futures market at the start of the 1980s. By April, annualised volatility for 2014 was as low as 15 per cent or below. Reuters market analyst John Kemp has even compared the recent period of calm to the 1950s and 1960s - which many see as a golden era before the 1973 oil crisis rocked the global oil market.

Nonetheless, buying fuel in Africa is still far more costly than using electricity from the grid. In Nigeria, accessing power from a diesel generator is four to five times more expensive than using mains supply electricity. Moreover, poor transport infrastructure means that the cost of oil can vary across any given African country.

But there is clearly a growing appetite for oil derivatives in Africa. In March this year, the Johannesburg Stock Exchange (JSE) introduced the Diesel Hedge Futures and Options to its commodity derivatives portfolio so that investors can shield themselves from fluctuations in the local price of diesel.

“In South Africa, fuel prices are set by the government and a number of components decide this, including the global oil price and the rand to the dollar. Volatility in the

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Algeria Burundi

US$36mn US$2.1mn

Cameroon Côte d’Ivoire

US$10.3mn US$5.3mn

Egypt

US$9.6mn

Ethiopia

US$8.4mn

Ghana Morocco Mozambique Namibia Niger

US$29.6mn US$6.1mn US$3mn US$0.2mn US$3mn

Nigeria Rwanda Sao Tome and Principe Senegal

US$73.4mn US$3mn US$0.8mn US$4.5mn

South Africa

US$21mn

Tanzania Uganda

POWER

US$22.8mn US$9.6mn

Imports in 2012

Diesel genset with output of < 75kVA

European oil and gas market continues to affect the market in South Africa,” said Chris Sturgess, head of JSE Commodity Derivatives Market.

“The Diesel Hedge Futures and Options can only grow and we are seeing a lot of interest from the investor community,” Sturgess added.

Some businesses are also adding new agreements to their leasing contracts with property owners. These clauses oblige the latter to shoulder rises in the cost of oil with the businesses renting their premises.

To conclude, demand for diesel generators shows no sign of abating in Africa. The price of fuel remains a stumbling block, however.

Companies that rely heavily on diesel generators are likely to keep trying to come up with solutions.

The chief threat to growing demand for generators comes from renewables, whose rapid technological advance combined with the precipitous fall in costs of photovoltaic (PV) panels may encroach on expected growth. Also, in urban areas, governments and customers are demanding ever stringent environmental regulations which may curb demand for diesel power generators.

Companies from all over the world including Europe, North America, China India and South Africa are competing for a slice of the African power generator market.

African Review of Business and Technology - October 2014

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FEATURE

Gensets

According to PowerGen Statistics’ Q4 2012 Diesel Generators Trade Report, UK and Chinese companies were the main suppliers in Africa. For instance UK-based distributed power provider Clarke Energy is supplying GE’s new diesel engines to Flour Mills of Nigeria, helping to solve the country’s energy distribution challenges and encouraging growth in the emerging industrial sector.

Alex Marshall, group marketing and compliance manager for Clarke Energy, said, “This project represents the first sale of GE’s new 616 diesel engine globally, which will deliver higher fuel efficiency and extended service intervals than many other diesel engines today.”

The Middle East and North Africa are the most lucrative markets for the UK, in particular Saudi Arabia, which accounts for 8.4 per cent of all the British exports of generators, representing US$177mn of sales.

In 2012, the UK generator market shipped US$2.1bn worth of sets around the world, with the majority of those exports coming from the sale of diesel-powered generators, according to the Association of Manufacturers of Power generating Systems (AMPS).

The factory output rose by 1.1 per cent in March 2013 following a 0.7 per cent increase in February of same year, according to the UK Office for National Statistics.

It was the first time in two years that manufacturing enjoyed growth for two consecutive months.

Robert Beebee, chairman of AMPS, said the UK was the leading exporter due to its reputation for quality generating sets.

“We retain a firm grip on the market, and people, where possible, still like to buy British,” he said.

Major UK manufacturers and exporters of the generators include biggest temporary power provider Aggreko, FG Wilson, Cummins, Allam Marine and Broadcrown. ■ Graph Source: UN Comtrade

Algeria

US$14.3mn

Burundi

US$6.7mn

Cameroon

US$4.4mn

Côte d’Ivoire

US$15.9mn

Egypt

US$3.2mn

Ethiopia

US$1.2mn

Ghana

US$0.9mn

Morocco

US$52.7mn

Mozambique Namibia

US$1.9mn US$0.3mn

Niger

US$1mn

Nigeria Rwanda Sao Tome and Principe

US$9.7mn US$12mn US$9.6mn

Senegal

US$37.2mn

South Africa Sudan

US$2.8mn US$3.2mn

Tanzania Uganda

US$1.6mn US$26.1mn

Imports in 2012

Diesel genset with output of 75-375kVA

Algeria Botswana Burundi Cameroon

US$19.7mn US$13.1mn US$7.4mn US$31.5mn

Côte d’Ivoire Ethiopia

US$0.5mn US$7.6mn

Ghana

US$108mn

Mali

US$1.5mn

Morocco

US$2.7mn

Mozambique

US$0.9mn

Namibia Niger

US$0.7mn US$0.8mn

Nigeria Rwanda Sao Tome and Principe

US$30.2mn US$10.4mn US$26.5mn

Senegal Sudan

US$2.8mn US$0.9mn

Tanzania Uganda

US$1.1mn US$50.9mn

Imports in 2012

Diesel genset with output of >375kVA

Product trends in the continent THE BASIC COMPONENTS of generators in particular, the engine, alternator and fuel technology have remained much the same over several years. Nevertheless, marginal advances including cleaner running engines, quieter designs and more efficient units have produced smaller, but more powerful generators. One notable trend has been the shrinking in size of generator sets, so that they can be delivered quickly by freight train and lorry to where they are needed.

A case in point is British-owned APR Energy, the supplier of 70MW modulised interim power plant to Botswana Power Corporation to protect the country from power outages in neighbouring South Africa.

Other important suppliers of small generators include Aggreko, which

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African Review of Business and Technology - October 2014

leases standby generators ranging from 15kVA, suitable for a house builder needing portable power, to 2.1MVA, suitable for mining.

Likewise, other manufactures such as Honda customarily supply small 10kW units, which is enough to power a house in Johannesburg.

Apart from a wider power range and smaller-sized units, there is a third trend — fuel diversity. There has been a discernible switch to gaspowered generators in countries like Tanzania, Nigeria, Mozambique and South Africa and Angola, Alex Marshall, group marketing and compliance manager of Clarke Energy, said. He added, “We are seeing generators powered by a whole variety of fuels, including LPG, oil, diesel, gas and biogas.”

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POWER

Mobile Power

With electrical power needs in remote areas and under extreme conditions requiring more than standard power generation equipment, Cummins Onan looks to address these issues with their newly released Rugged Mobile Power (RMP) platform – designed specifically for the most challenging environments. ortability, dependability and durability are essential that is seeing current deployment in global conflict zones. factors for any type of equipment used in remote In other words, they are about as experienced as they come locations or within harsh environments. This is in developing products for these types of operations and especially true with the growing need for electrical power in environments. areas where the grid is unreliable or more commonly, non“The RMP design is based off of the generator we existent. Whether in support of disaster relief efforts or designed for the US military,” says Steve Jelinek, senior military operations, many specialised solutions have been product manager for the RMP platform. “We tweaked that developed over the years, yet each has historically fallen robust design to meet a wider array of needs, from foreign short in either its ability to militaries to NGOs, and are withstand the operational pretty proud of it.

The robust design of RMP makes it suitable for a environment or in its “The damn thing just won’t variety of customers working under tough mobility to quickly be break – believe me, we’ve conditions such as NGOs and military forces deployed and or relocated. tried,” he remarks. That being Enter Cummins Onan. said, while the design is “We have seen a growing focused an efficient power demand in the global market supply with an emphasis on for an extremely rugged, yet uptime, reliability, and power, truly mobile power Cummins Onan does have a solution,” says Brian Barnes, safety net in place – the largest marketing leader for worldwide 24/7 service Cummins Onan’s Mobile network available.

Generator Division.

The product boasts a “As a company, we look to laundry list of benefits well solve people’s power needs beyond it mobility and to make their jobs easier ruggedness. Paralleling and that is why we capability allows for rapid developed a military-grade expansion should power needs power generation platform increase as well as providing a we call RMP or Rugged reduced logistical footprint – making it Mobile Power.” ideal for NGOs. Further, self-diagnostics help While the RMP product is just being maximise uptime in the field. released onto the market, there is a long history On the military side, not only does it incorporate a there. Prior to being acquired by Cummins Inc., the Onan multi-fuel design, but it has low infrared and low noise Corporation was a leading supplier of generator sets to signatures, as well as the capability to withstand a highAllied forces during the Second World War. Concurrently, altitude electromagnetic pulse.

Cummins diesel engines have powered several generations “It’s pretty exciting to be able to provide a rugged mobile of military vehicles, including the British Marconi AS90 selfpower solution for not only militaries around the world, but propelled howitzer, the US Bradley Fighting Vehicle and also those people and organisations that focus on helping many MRAP variants. others,” Barnes notes. “We strongly believe there is nothing More recently, Cummins Power Generation (of which like it on the market and know it will meet the needs Cummins Onan is a part) designed a tactical generator whenever and wherever, no matter how challenging the platform for specific use by the US Department of Defence environment.” ■

P

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POWER

Grid

SADC rolls out new power projects Newly-phased in power infrastructure will increase network capacity across several southern African territories

T

he southern African region has identified at least nine high-priority energy transmission projects which are valued at over US$4bn for promotion and marketing to investors.

According to information obtained at the rent 34th Summit of Heads of State and Government in Victoria Falls, Zimbabwe, these projects are at various stages of development and they include the flagship ZiZaBoNa Interconnector Project to be implemented by Zimbabwe, Zambia, Botswana and Namibia.

Other projects of high priority encompass the Central Transmission Corridor (CTC), the Mozambique Backbone Project, the ZambiaTanzania-Kenya Interconnector as well as the proposed Namibia-Angola Interconnector.

According to the Director of Infrastructure and Services at the SADC Secretariat, Remmy Makumbe, a joint utility steering committee consisting of officials from the Zimbabwe Electricity Supply Authority (ZESA) and ESKOM of South Africa has been formed to steer the CTC project and draft terms of reference (ToR) for technical and commercial teams have been developed. ‘’ZESA, in conjunction with ESKOM, is studying current network configuration and capacity, and is reviewing all possible technical options available for the CTC project to increase network transfer capacity,’’ Makumbe said.

The Southern African Power Pool which co-ordinates the planning, generation, transmission and marketing of electricity on behalf of utilities in the region, completed the tendering process for the ZiZaBoNa project in May 2013 and a number of investors are reported to have expressed interest in developing the electricity transmission interconnector.

This interconnector has the capacity to increase power trading among participating utilities, as well as providing an alternative route to decongest the existing central

62

The Southern African Power Pool co-ordinates the planning, generation, transmission and marketing of electricity on behalf of utilities in the region (Photo: J Endres)

transmission corridor that passes through Zimbabwe.

The ZiZaBoNa project is an example of regional cooperation and integration. And its completion would ensure that most SADC countries are able to share surplus energy.

Under the project agreement signed in 2008, power utilities of all the four countries are expected to finance parts of the project that fall within their national boundaries – Zimbabwe Electricty Supply Authority (ZESA), Zambia Electricity Supply Corporation (ZESCO), Botswana Power Corporation (BPC), and Namibia Power Company (NamPower).

The initial capacity of the transmission interconnector will be 300MW which will be increased to 600MW later. The project is to be implemented in two phases. The first phase will cover the construction of a 120 kilometre, 330 kilovolt line from Hwange Power Station to Victoria Falls where a switching station will be built on the Zimbabwean side. The line will be extended to a substation at Livingstone in Zambia.

Constructing capacity The first phase will involve the construction of a 300km, 330kV line from Livingstone to Katima Mulilo in Namibia, through Pandamatenga in Botswana. The Zimbabwe-Zambia Interconnector will be built as a high voltage line with a transmission capacity of 430kV.

African Review of Business and Technology - October 2014

However, it will operate as a 330kV line during the first phase. When fully operational, the ZiZaBoNa transmission interconnector will, among other things, make it possible for NamPower to import directly from Hwange in Zimbabwe. Currently, electricity from the Hwange Power Station is routed to Namibia through South Africa.

Regarding the CTC in Zimbabwe, the project involves construction of power lines to increase the north-south transfer capacity of the Zimbabwean network from 200kV to 600kV. The corridor is critical for SADC, as most utilities in the region use the Zimbabwean network for their power wheeling. The cost of the project is about US$100mn.

The Mozambique Regional Transmission Backbone project (STE)will consist of a double transmission line from the Tete Province in central Mozambique and the SAPP interconnected regional power network.

The STE will transport the electricity generated in new hydropower plants from Mphanda Nkuwa (1,500MW) and Cabora Bassa (North Bank, 1,245MW) in Mozambique to the markets. The backbone will comprise a 400kV HVAC line and an 800kV line to supply the major consumption zones within Mozambique and link with the South African market. Its estimated cost is US$2.8bn. ■ Nawa Mutumweno www.africanreview.com

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Genset

POWER

Power made simple The new 32-125 kVA range provides uncomplicated power assurance

F

G Wilson is continuing to strengthen its position as the leading global manufacturer of diesel and gas generator sets with the launch of its new F model range.

The 32 – 125 kVA range of generator sets, complementing the existing FG Wilson product ranges, are designed to provide a more diverse and competitive product offering across multiple customer segments such as domestic, retail and industrial.

Uncompromising on quality, availability or expert local support, these models deliver uncomplicated power assurance with the quality excellence you’ve come to expect from FG Wilson.

An exclusive feature of the new range is the introduction of the FG Wilson engines to the proven and trusted FG Wilson generator set core design. Coupled with robust world renowned components, the F models deliver a high quality, ready-to-run product that meets industry standards for the value-utility market.

Continually evolving Launching the new product range, Stephen McKinty, general manager of FG Wilson, said,

“This product range delivers, as always, performance, serviceability and durability with an FG Wilson engine and a simplified choice of options. This will allow us to compete in new markets and broaden our customer base.

Such new product introductions are part of Caterpillar’s strategic plans to position FG Wilson as the volume brand within its Electrical Power Division for all diesel and gas generator sets from 6.8 – 750 kVA. Our ability to continually evolve our products to meet the ever-changing needs of customers, in a market that is more competitive than ever, has been key to FG Wilson retaining its global leadership position in power generation. ” Trusted performance The FG Wilson engines provide reliable power. Combined with the Marelli alternator, providing coastal insulation protection and a RFI filter as standard, a trusted performance is guaranteed.

Installation, servicing and maintenance is fast, easy and efficient. Side-hinged doors

FG Wilson’s new F model delivers high quality, ready-to-run product that meets industry standards

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and lift-off end panels provide ample access to all necessary components during installations and maintenance. Lift-off hinges enable the doors to be removed at an angle of 90 degrees, facilitating easy servicing in confined installation spaces.

Complemented by easily-accessible fuel transfer connection points, the fuel fill and gauge are positioned together for quick and easy fill and monitoring.

Robust structure The robust steel enclosure ensures a high quality generator set with sound attenuation and protection suitable for a diverse range of applications. Its strong, clean design is protected by advanced powder coat paint and can be further protected with the galvanised steel option if desired, allowing you to customise the range to suit your needs.

The base frame provides a solid foundation within a compact footprint. Constructed from high-grade, heavy duty steel and further protected by powder coat paint, durability and maximum corrosion resistance are ensured.

Suitable for lesser regulated markets and non-mobile applications within Europe, the 32 – 125 kVA range is available to order now.

Global expertise FG Wilson is a truly global brand with 48 years of industry-leading experience in the supply of diesel and gas generator sets from 6.8 – 2,500 kVA. Over 370 authorised dealers in more than 150 countries provide global expertise, with local advice and support.

The manufacturer’s ONE Global Quality Standard ensures that every generator set is designed and built to the highest UK standards. With world-class production processes replicated at all FG Wilson manufacturing facilities (Brazil, China, India, USA and UK), each achieving ISO 9001 and ISO 14001 certification, a quality product is delivered every time. ■

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POWER

Engines

Fuel efficiency for Flour Mills in Nigeria Technology based on GE’s proven Jenbacher Type 6 gas engines and GE Transportation’s P616 locomotive engine

D

istributed power provider Clarke Energy is supplying GE’s new diesel engines to Flour Mills of Nigeria plc, helping to solve the West African country’s energy distribution challenges and encouraging growth in the emerging industrial sector.

The project represents the first sale of GE’s new 616 diesel engine globally, which will deliver higher fuel efficiency and extended service intervals than many other diesel engines today.

“As Nigeria continues to grow its industrial might in the global economy, we have opted to invest in GE’s new 616 diesel engines to deliver higher fuel efficiency at our sites in Lagos and Kano. We have been working with Clarke Energy since 2005, and we are confident in its ability to support us in the engineering installation and maintenance of the units,” said Paul Gbededo, chief executive officer of Flour Mills of Nigeria, plc.

The Flour Mills project will include five of GE’s 616 units, delivering up to 12.5 megawatts (MW) of electrical power or enough to power 33,000 Nigerian homes. Two of the units will be used at the Kano facility in northern Nigeria, GE’s 616 diesel engine where natural gas access is limited and older, less-efficient diesel units have been used in order to maintain power for production. The new GE engines will deliver 5MW of baseload electrical power, with an expected capital payback in less than 12 months on diesel fuel cost savings alone.

The other three GE engines will be at Flour Mills’ facility in Apapa, Lagos, the same city in which Clarke Energy opened its first subSaharan Africa site nearly a decade ago. This site already features 11 of GE’s J620 gas engines, and the diesel units will provide backup power generation capacity in the event of maintenance on the site’s existing power generation equipment or in the event of a gas supply failure.

“The sale of these engines to our valued long-term customer Flour Mills of Nigeria demonstrates the significant benefits of reduced fuel consumption and extended maintenance intervals from GE’s new 616 diesel platform,” said Alan Fletcher, main board director, Clarke Energy.

Clarke Energy has had a long history in sub-Saharan Africa. Its first office opened in 2005 in Apapa, Lagos, and over 250 MW of gasfuelled power plants have since been installed to meet expansion of Nigeria’s domestic gas supplies. Since inception, Clarke Energy’s Nigerian operations have expanded and moved to Ikeja GRA, opening a new branch office in Port Harcourt in 2012.

A powerful portfolio GE’s 616 diesel engine is based upon the highly successful Jenbacher Type 6 reciprocating engine and GE Transportation’s P616 locomotive diesel engine. The engine’s design is characterized by its world-class efficiency and extended maintenance intervals, which result in lower fuel consumption and higher levels of availability.

“Our new 616 diesel engine is the first high-speed model for power generation, allowing us to serve customers with a wider reciprocating engine portfolio,” said Cory Nelson, general manager diesel engines of GE’s Distributed Power business. “We are honoured by the trust Flour Mills of Nigeria has extended to Clarke Energy and GE as collaborators in providing power generation for their growth. Flour Mills will benefit from the 616, which couples medium-speed engine fuel economy with the lower costs of high-speed engines and helps customers improve their total life cycle costs. ■

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Africa Electricity

POWER

Powering Africa A

frica’s demand for electricity is expected electricity transmission and distribution ESKOM, to grow at an annual rate of three per have embarked on a massive programme of cent over the next 20 years and the electricity generation with a reported continent still requires an additional 300GW investment of US$40bn. capacity to meet power demands, according Electricity generation in South Africa has to reports. traditionally relied upon coal as its primary source.

The Africa Electricity 2015 will give an However, South Africa and, in large, majority of insight on the opportunities in Africa’s power sub-Saharan countries are increasingly looking at sector and help create business network. renewable energy to bridge the supply-demand Being held 30 Septembet to 2 October next gap. The country is currently targeting 42 per cent year at Sandton Convention Centre in of its energy to come from renewable sources by Johannesburg, the event will see attendence The exhibition will also focus on current trends in South 2030. Most recently, the government and Africa’s power generation market. of delegates from sectors including building Independent Power Producers (IPPs) have signed contractors, dealers and distributors, electro-mechanical contractors, agreements to add 1400MW to the grid. electrical retailers, government bodies, large industrial companies, Nuclear power is also a big focus in South Africa. Currently nuclear municipalities, OEMs, oil and gas companies, power generation firms, power is provided by the Koeberg Nuclear Power station but plans power plant operators, power producers and utility companies from are to add 9600MW of new nuclear capacity to the country’s energy around the world. mix by 2030.

The exhibition will also focus on current trends in South Africa’s power The South African government has identified water as a critical generation market. resource, so much so, that it said that the current water value chain Years of under-investment in the South Africa’s power sector have needs around US$66bn worth of investment. Around US$19bn for meant that current supply cannot keep up with demand. Therefore, water resource infrastructure, US$46bn for water services and US$2bn the government, alongwith state-owned company in charge of for conservation demand management. ■

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African Review of Business and Technology - October 2014

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POWER

Renewables

Managing motors to make more power How encoders enable dynamic pitch control when installed for use on wind energy turbines

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ountapulse Controls has a range of Hengstler encoders available for sophisticated pitch control on wind turbines. Wind energy turbines are not only exposed to strongly fluctuating winds but have to use these forces as efficiently as possible. Therefore dynamic pitch control is essential to boost the efficiency of this renewable energy technology by adjusting the rotor blade to the required angle.

Safe operation at speed At low wind speeds, the rotor blades are directed towards the wind and turned away again as the wind forces increase, so as to ensure that the wind turbine continues to operate safely even at high wind speeds. Just as for many applications involving rotational movements, there are different approaches enabling the use of encoders - starting from simple solutions with only one incremental encoder right through to a combination of two redundant absolute encoders.

The gear motor positions the rotor blade while an additional brake ensures that the required position is maintained safely even in the event of a power failure. Since the encoder is mounted directly onto the drive, it has to return reliable positioning values within the temperature range from minus 40 to plus 100°C. The optical gear based multi turn Acuro AC58 encoders from Hengstler, distributed by Countapulse Controls, have proven to be the best and most suitable solution in this regard.

The position is determined by means of an optical rear illumination method. The mechanical multi turn gear is also scanned optically so that it is not necessary to test the magnetic effects which may be caused by the drive brakes in particular. Such scanning is not susceptible to magnetic interference and therefore suitable for direct mounting on all motors that are provided with brakes. In addition, the encoder offers high resolution values and is able to indicate both absolute

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Hengstler encoders from Countapulse Controls are ideal for dynamic pitch control on wind energy turbines in order to boost the efficiency of this renewable energy technology

and incremental signals which can be used as reference values and/or for speed adjustments. As a result, no additional resolvers or tachometers are necessary.

Another alternative is to mount the encoder directly on the slewing ring of the rotor blade. In this case, it is coupled by means of a cog wheel mounted on the encoder shaft. Since the mechanical stresses on the sensor are significantly higher than in the case of motor installation, this application places totally different demands on the encoder. To reduce the encoder bearing load, bearing modules have often been used in the past. This installation variant calls for a specifically robust encoder such as Acuro AR62. Featuring a compact design and extremely sturdy ball bearings, it is suitable for very high axial and radial loads. With a maximum admissible load of 300 N (both axial and radial), it not only surpasses most of the common load module types, but also offer ten times the load capacity of commercially available encoders.

Electronics and environments Similar to AR58, AR62 is an electronic multi turn encoder that also exhibits wear free

African Review of Business and Technology - October 2014

pulse wire technology. Magnetic single turn and multi turn scanning ensure high shock and vibration resistance. It is also resistant to environmental influences such as humidity and wide temperature ranges. Offering protection class IP69K this encoder type is suitable for complete outdoor installation.

Mechanics to meet demands Finally, the encoder can also be mounted onto a limit switch box. On-site installation is facilitated by a complete, pre-adjusted component assembly. In this approach the mechanical requirements are not as high as compared to the direct installation on the rotor blade. Meeting all the demands for high precision and sturdiness the Acuro AR58 magnetic absolute encoder is a cost-efficient solution due to its mechanical design.

Both in the single turn and multi turn variant, this encoder type needs only one single magnet. The multi turn encoder uses pulse wire technology, which means that it operates completely wear free without battery and gear. The energy required for position detection is produced from the rotational movement alone, a significant advantage of this technology. ■ www.africanreview.com

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POweR

Renewables

Providing power to bio-energy project

The BIOCOM plant in Angola

HIMOINSA has been instrumental in supplying continuous electricity to one of Angola’s biggest biofuel plants

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imoinsa has supplied power using more than 25 generator sets for the construction of a biofuel manufacturing plant on the African continent. Situated in Cacuso, 75km from the city of Malanje in Angola, the plant is managed by BIOCOM, a consortium (UTE) comprising Sonangol, Sociedade Nacional de Combustíveis of Angola, and Brazilian construction company Odebrecht.

This bio-energy project, which was scheduled to come on stream in September 2014, has already started to generate 120MW of electricity and guarantees an annual output of close to 18,000 tonnes of sugar and 3,000 cu/m of ethanol.

BIOCOM has estimated annual production will climb to 256,000 tonnes of sugar and 30mn litres of ethanol as from 2019, as well as generating electricity that will be used to increase the amount of power travelling through the Capanda/Cacuso high-voltage cable supplying the municipality and Malanje.

During the plant’s construction, HIMOINSA supplied 25 diesel generators and lighting towers of between 180 and 400kVA. This equipment supplied energy to develop the sugar cane plantation and construct the plant. HIMOINSA ANGOLA also provided

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HIMOINSA supplied 25 diesel generators and lighting towers of between 180 and 400kVA technical and maintenance services to the biofuel plant.

During the first phase of this project, the plant is capable of generating 120MW/hour of energy, which is expected to rise to 235MW/hour as from 2019. The plant’s

African Review of Business and Technology - October 2014

current output will supply 220,000 homes.

Once the 235 MW/hour of energy comes on stream, the power distributed will meet the demand of 440,000 houses.

HIMOINSA ANGOLA’s commercial director, Osvaldo de Brito Simao, described the project as “beneficial to the population of Malanje and important for HIMOINSA ANGOLA’s technical and commercial team, who have worked for some time to manufacture and maintain the equipment needed for the project, to guarantee a highquality and continuous supply of energy, without any outages.” ■ www.africanreview.com

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POweR

Renewables

Mission: light up Nigeria efforts underway in key west African nation to step up measures to increase self-reliance on electricity

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n 13 November 2013, Nigeria invested in an exceptional power idea ‘Light Up Nigeria’. The authorities said that the aim of this singular project was targeted to providing the much-needed electricity in Nigeria, particularly to select towns and villages across the country,in a renewable form known as solar energy.

Chinedu Nebo, Nigeria’s Minister of Power, said that this cost-effective project was embarked upon to reach out to the areas, where it was believed that electricity could not be reached like the rural and riverside areas.

The project was first installed at Durumi near Mpape in Abuja by Nebo, who said that the project was in line with the transformation agenda for the power sector by the administration of President Goodluck Jonathan.

The Ministry of Power came up with ‘Operation light up rural Nigeria’ in partnership with foreign firms like Philips and Schneider Electric.

In Nebo’s estimation, the collaboration with the foreign firms would aid the fast reaching out of electricity to select parts of the country, starting from the suburb of Abuja. The government has already provided three kilowatts facility solar panel to electrify over 1,050 houses in Durumi.

Nebo said, “By the time the project is completed, every household in the district would get electricity from the solar panel, which they would eventually pay a token as maintenance charges. We have provided temporary building with 24 hours electricity so that you can store vaccines from the clinic and charge your phones free of charge.’’

The project will incorporate the installation of non-grid decentralised mini solar wind power generation plants that will serve the electricity needs in 16 states across the country, especially in select local government areas (LGA) in the states within six months.

The main goal of the project is get electricity to LGAs by this December.

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Nigerians believe that the power sector can only make investors come in to the country as its the key to the development and also the solution

Talking about the project still accessible to small part of Nigeria, Nebo added, “This leaves a majority of Nigerians who live in the rural areas without access to electricity.

Providing access to electricity through alternative energy is a technology of necessity for Nigeria. As an alternative energy option, solar and wind power generation will be a practical alternative to supplementing electricity supply in Nigeria. This will curb urban migration, create employment opportunities and reduce crime.”

In July 2014 Nebo said that the efforts of the government replace solar technology solution with generators as primary method of supplying electricity for rural electrification projects across the country.

The Ministry of Power had in March blamed on ‘gas shortage and pipeline vandalism’ for the drop in electricity supply.

Nebo, however, said that he was optimistic that with the cooperation and support of stakeholders in the sector, there was hope for the economic growth and industrialisation of the country, which the sector would propel.

Nigerians believe that the power sector can only make investors come in to the country as its the key to the development and also the solution.

According to the information provided by news agency of Nigeria NAN, Nebo had said at the opening of the ‘Nigeria Power Forum

African Review of Business and Technology - October 2014

Conference and Exhibition’, “We still face many challenges. Gas supply is a very serious one and the current difficulty, we have in generation dropping substantially in the past couple of days, was as a result of gas limitation.

“We also have security issues bordering on vandalism of the sector’s gas pipelines and oil pipelines that are associated with gas and then transmission and distribution infrastructure.”

He added that there were huge challenges in transmission because they need to be sure that there was more wheeling capacity than generation, and hence they would need to beef up the generation capacity and transmission capacity.”

It is obvious that the power sector in Nigeria is yearning for innovative blueprint on how to effect change in the power sector in order to address the issues of how to fund the sector and address the infrastructure shortfall, especially in the area of the ‘transmission chain’. Nebo said, “With regards to transmission, I plead with people who have a know-how in the power sector, investors and technicians to really look into what Nigeria needs now. I will like you to also look at issues around market solvency, funding model for transmission, and so on.” ■ Odimegwu Onwumere www.africanreview.com

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PoWer

renewables

Solar power set to take centre stage in SA With corporate and industrial energy management on the rise in South Africa, PV is set to play a huge part in delivering more energy efficiency

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rina Solar Limited, which specialises in photovoltaic solutions and services, has entered the South African market at an opportune time, with the country in the midst of an ongoing energy crisis. According to Josefin Berg, senior PV analyst at IHS, “South Africa has consolidated its position as a growth market for PV by cultivating a policy environment stable enough to attract financing from commercial banks.”

Moreover, South Africa has now connected more than half a gigawatt of utility-scale solar power, moving into the world’s top 10 of countries harnessing renewable energy from the sun, according to figures released recently by Wiki-Solar.org, which monitors the deployment of utility-scale solar power/photovoltaic (PV) power stations of 5 to 10 megawatts and above.

Unreliable energy supplies are costing the nation billions, inconveniencing businesses and consumers alike, so the time is ripe for alternative solutions to play an even greater role in the national energy framework. South Africa still has an abundance of fossil fuels in the form of coal; there are rich coal deposits concentrated in the north-east of the country.

Hence, the majority of the many existing and newly developed coal powered power stations in SA are located in the Mpumalanga province, producing around 77 per cent of South Africa's energy needs directly from coal, with 81 per cent of all coal consumed domestically going towards electricity production. However, South Africa also has an abundance of sunshine, which lends itself very well for solar water heating and electricity generation. With the increasing cost of coal-powered electricity, in part caused by inadequate supply provision, solar powered heating and electricity is becoming more attractive.

“South Africa’s power supply has been under enormous strain for decades, and the recent spate of rolling blackouts due to incapacity has again turned attention to the

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The majority of South African power is generated by coal plants such as the Arnot Power Station in Middelburg

energy crisis here,” said Ben Hill, head of Europe and Africa for Trina Solar.

“The idea of relying on non-renewable energies has quickly become moot, with South Africa’s dependence on coal being disturbed by many factors, one of which is the rainy season, even further highlighting its unpredictability. Not to mention the negative environmental effects of using coal to produce the level of electricity required, even in Johannesburg alone.”

Success in solar power Confidence in solar energy has been bolstered by several successful projects and applications, making it a popular choice for industrial, commercial and even residential use. “While many flocked towards generators as an ideal power solution, particularly during the 2008 grid collapse, the sharp increase in fuel prices has also made them a very costly and unpredictable alternative,” said Hill. “Solar power on the other hand is gaining a lot of attention in the market for its cleaner and greener positioning, as well as its clear cost effectiveness.”

African review of Business and Technology - october 2014

Commercial options When it comes to Hill’s predictions for the local industry, he believes that factors such as financing programmes will play a big role in ensuring the market continues to grow.

“For example, The Eskom IDM programme really got the solar commercial rooftop market buzzing in South Africa. We have since seen the commissioning of a number of projects which were previously unable to launch and expect to see even more emerge in the near future,” said Hill.

Hill advises companies and individuals to consider their options carefully before choosing a route. “Each company or building has its own complexities in terms of electricity needs and consumption. PV offers unrivalled benefits to large companies through a variety of application options, and poses the ideal respite from unreliability of the massive strain on the existing Eskom power grid. We believe that seeing PV working well for companies and residents will pave the way for even more investment, not only benefitting them but also the economy at large.” ■ www.africanreview.com

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Automotive

PoWer

Collaborating on vehicle charging energy management specialists at Schneider electric collaborate with BMW’s automotive engineers on a new era of mobility

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MW South Africa recently committed to a far-reaching partnership with Schneider Electric, in order to forge ahead with its strategy for customer-friendly electric mobility. The partnership agreement includes checking the electrical installation in customers’ homes, supplying and assembling the wallbox charging point, as well as maintenance and other services for BMW i vehicles.

This will allow future owners of a BMW i3 or BMW i8 to hook up their vehicles safely and quickly recharge it while at home or in the office.

The partnership arrangements help fulfil the overriding objective of providing customer-friendly and efficient charging facilities by the time the BMW i3 is launched locally that will allow for recharging in the comfort of the customer’s own garage. The BMW i3 will be the first electric vehicle on the market to be purpose-designed as such from the outset, and is slated for launch in South Africa early in 2015.

From concepts to customer service The partnership was announced at Schneider Electric’s first southern African Xperience Efficiency conference, held recently at the Birchwood Conference Centre in Johannesburg. The innovative BMW i3 and BMW i Wallbox were showcased at the event as well.A t the conference, Antonio Antela Martinez, BMW South Africa’s director of sales and marketing said that with BMW i, the company is adopting an all-embracing approach to electric mobility meaning that BMW i will be offering more than just the purchase of the BMW i3.

“Over the course of the numerous pilot tests we staged worldwide with electric vehicles, we listened to our customers very carefully, and will be able to offer them a ‘360° Electric’ concept when the i3 is launched locally as well, comprising solutions that cater to all the requirements of future electric motorists. We see the professional installation of the wallbox for charging the BMW i3 and i8 as one of the key factors for the successful marketing of electric vehicles. We are delighted to have Schneider Electric, one of the most internationally experienced partners in the field of electric mobility, on board to help implement our strategy.”

“Schneider Electric is very excited about collaborating with BMW on its i Wallbox charging station, and providing future electric vehicle customers in this region with our smart energy solution knowledge and installation skills, which are focused on being safe, reliable, efficient, productive and green,” added Eric Léger, country president for southern Africa at Schneider Electric.

This collaboration allows Schneider Electric to work closely with the BMW i sales agents and customers, providing home surveys, supply and installation of the charging point, as well as offering maintenance and comprehensive support. The installation package is also provided

by Schneider Electric but managed by BMW and can be customised to meet customers‘ specific requirements. www.africanreview.com

The BMW i3, at the core of efforts towards electric mobility in South Africa

A new era of electric mobility The market launch of the BMW i3 will usher in a new era in electric mobility. It is the world’s first premium car conceived from the outset to incorporate an all-electric drive system. This concept gives the i3 numerous advantages over “conversion” vehicles, in which the original combustion engine is later swapped for an electric motor.

When it comes to the driving attributes of the i3, the engineers have achieved a perfect balance of vehicle weight, performance and range.

This is particularly important since these three factors are so inextricably linked. In its mission to deliver driving pleasure in urban areas, the BMW i3 has come up with the perfect package. With a DIN kerb weight of 1,195kg, the car is lighter than most compact vehicles, yet offers significantly more space for up to four occupants. The hybrid synchronous electric motor developed and produced specially by the BMW Group for use in the BMW i3 generates output of 125kW and puts maximum torque of 250 Newton metres on tap from the moment the car pulls away. The BMW i3 dashes from 0 to 100 km/h in 7.2 seconds, and 0 to 60 km/h in 3.7 seconds. Furthermore, extensive road tests conducted proved that the car’s range of 130 to 160 kilometres in everyday conditions is adequate to comfortably meet the day-to-day mobility needs of the target customer group. ■ African review of Business and Technology - october 2014

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ProfIle

Iskra Zaščite

Surge protection solutions at Iskra Zaščite I

f you want to be a leader in your industry you have to be first or the best. If we want you to be a leader or the best we must be faster, have quality, we must be better, different and innovative than our competition.

We are all that and even more!

DO NOT LET SAFETY TO BECOME A PROBLEM! Considering the type of connection of surge arresters (they are always connected between energized conductors towards earthing systems and the protective or neutral conductors) there are also required additional solutions designed to safely disconnect the surge arrester from the voltage source. In alternating-current circuits this is achieved by installing a back-up fuse or an internal circuit breaker to safely disconnect the surge arrester from the voltage source in case of varistor overload.

Surge arresters installed in directcurrent systems cannot be safely SAFETEC® TCG technology protected by back-up fuses, since the short-circuit current of photovoltaic panels is current not more than 100 mA. limited to the rated current value being about By using new alternative electric power 10A. Since installation of a back-up fuse is the generation technologies like photovoltaic only way of protection, it is quite obvious that systems and implementing them in the the manufacturers are facing a challenge how existing power grids, manufacturers of to provide a controlled disconnection of the electrotechnical equipment are facing new surge arrester from the mains. challenges. The manufacturers of surge We are, however, facing another problem protective devices are no exception. arising from the very characteristic of directcurrent. In alternating-current systems arcs A reliable solution are possible but the arc length is generally Current statistics and estimates of damages considerably shorter because the arc cools show that about one-third of all claims and may extinguish as the current passes excluding consequential and outage costs through zero during the normal supply were caused by surges. circle. For direct-current system however the In the case of photovoltaic systems is the current remains relatively constant and does danger for damage on equipment even not go through zero and so the arc is more higher. Outside positioning of the system, readily maintened over relatively large gaps. complexity of technology and exposure to This means that the electric arc is not the overvoltages from the power grids are necessarily quenched in spite of activated the key facts why photovoltaic systems are internal thermal protection. At a high under threat from transient surges. voltage the arc may be maintained even by a The products need to be adjusted to these

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African review of Business and Technology - october 2014

specific requirements. The best answer on the market is SAFETEC®!

The SAFETEC® series is a reliable solution for all overvoltages, surges and transients. The all in one technology is suitable for all DC and AC applications. This new device features the industry's widest range and an unprecedented level of integration, enabling power systems to improve surge protection, while simplifying their designs and lowering overall system cost.

The worldwide patented TCG technology® with thermal control functions, without leakage current, prolongs the lifespan of SPDs, enables even higher TOV immunity and improves the protection level while, at the same time retaining the same dimensions as other conventional protective devices.

The main SPD components within TCG technology® are a high performance MOV with internal disconnection in series with GDT and TCG circuit.

Two possible types of overvoltages may appear in the power supply network: ● Transient overvoltages (switching operations, direct and indirect atmospheric discharges etc.) ● Temporary overvotlages (TOVs). TOV can lasts between 5 seconds and up to few weeks. Voltage amplitude can reach 173 per cent UREF. SAFETEC® is ideal solution for both.

Based on many years of experience Iskra Zaščite completely understand risks in veriety of applications. We are providing solutions with only one purpose, to assure you and your customers 100 per cent safety and reliability of surge protective devices. ■ Contact Iskra Zaščite at: Stegne 23A, 1000 Ljubljana Slovenia T: +386 1 5003 100 E: info@iskrazascite.si www.africanreview.com

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Services

COnSTRuCTiOn

Cape Town projects in progress M

urray & Roberts Western Cape is making significant progress with its two full construction services contracts for the Rabie Property Group at Century City in South Africa’s Cape Town. The first contract Bridge Park was awarded in November 2013, while the second contract, Century City Urban Square, is on the adjacent site and was awarded in March 2014. The total value of the work being undertaken by Murray & Roberts Western Cape at Century City at present amounts to over US$82.17mn.

Designed by Vivid Architects, the Century City Urban Square project comprises a conference centre, 125-bedroom boutique hotel, residential apartments and a seven-storey commercial office block. The conference centre will have capacity for 1,900 delegates over 20 different venues, including 12 meeting rooms and a business lounge. The entire project will have a public square, and be built over a ‘super’ basement parking garage.

The 18,000 sq m Bridge Park office complex, designed by DHK architects, will be the first of the packages to be completed in mid 2015.

“The structure on Bridge Park is approximately 70 per cent complete and the piling and deep foundations on the Urban Square will be completed by early September 2014, with the first structural concrete reaching ground level at the same time,” Dave Heron, managing director of Murray & Roberts Western Cape, said.

Heron added that a concrete batch plant has been erected on-site in order to facilitate both these fast-track contracts, which will be completed by the end of 2015. A total of six tower cranes will be erected by early September 2014 in order to service the sites. The phased bulk excavations during the earthworks portion of the projects saw the removal of 70,000 cu/m of material. An on-site batch plant with a discharge rate of 65 cu/m per hour of concrete has been set up in order to cope with project demands which total 55,000 cu/m of concrete. ■

The Bridge Park office complex is adjacent to the Urban Square development and will be the first of the packages to be completed in mid-2015

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COnSTRuCTiOn

Contracting

Specialists expand fleet for new work Kusile Trading acquires more equipment and hires more contractors in order to deliver milestone projects

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ntering its fourteenth year in business, sub-contractor Kusile Trading’s growth path is backed by an expanding Cat earthmoving fleet as the company undertakes a range of projects in South Africa. The start of the Bakwena Platinum Highway N1/N4 toll project back in 2001 has passed on significant downstream socioeconomic benefits, a prime example being the creation of construction jobs, as well as opportunities in this field for small and medium enterprises (SMEs). Kusile is headed by business owner Peter Letsike says that structural and earthworks contracts secured from the onset of the Bakwena project served as the springboard for the company’s establishment and current success, working for Bakwena Concessionaire companies, Murray & Roberts, Concor and WBHO. Leading with earthmoving In terms of background, the N1 portion of the Bakwena Corridor is a 95km dual carriageway linking the City of Tshwane and Bela-Bela, whilst the 290km N4 route connects Pretoria via Rustenburg, culminating at South Africa’s Skilpadhek border post leading into Botswana. The project expenditure during the initial four year construction programme was around R2bn (US$185.9mn).

During this period, Kusile worked on various phases, which includes the construction of N4 toll booths, steel fixing, materials supply, the building of in-situ concrete storm water channels, the installation of barrier guards, as well as the supply of general labour.

“In fact, we continue to secure work on various Bakwena Concessionaire upgrade projects, a current example being on a section of the N1 near Hammanskraal, and extending towards Warm Baths,” explained Letsike. Awarded by Murray & Roberts, the project commenced in April 2014 and entails trench excavation and the ensuing installation of PVC sub-soil drainage pipes

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The Cat 422F comes equipped with powerful, load-sensing, closed centre hydraulics

along both north and south bound sections.

Since 2001, Kusile has also worked as a specialist sub-contractor for a range of public and private sector clients, the former including Eskom’s construction arm, Roschcon (on projects that include Tutuka Power Station in Standerton), and the latter comprising various SAFCEC (South African Federation of Civil Engineering Contractor) companies, mostly in areas such as earthworks and concrete structures.

Milestone projects include Kusile’s involvement in the building of the landmark Freedom Park development, which was constructed by main contractor Stefanutti Stocks on a 52 hectare site at Salvokop on the outskirts of Pretoria. Others include work as a sub-contractor on stages of the Gautrain Rapid Rail Project. Areas where Kusile was involved include Marlboro station, and the Hatfield to Sandton section, for tasks ranging from surface drainage and guard rails to concrete works above ground, as well as in underground tunnel sections.

Growth over time has led to Kusile Trading attaining a Level 5 CE Construction Industry Development Board (CIDB) grading, and the company has a current staff complement of around 300 personnel. It’s an achievement

African Review of Business and Technology - October 2014

that Letsike is especially proud of, considering that his first exposure to the construction industry was as a general worker back in 1995.

Supply and support Allied to the development of Kusile Trading is the formation of sister company, MMK Plant Hire, which fields a comprehensive and diversified equipment fleet that includes skid steers, wheel loaders and double drum utility compactors deployed on an ongoing basis on various construction projects.

From the onset, Kusile’s earthmoving capability has been driven by Cat machines, which includes latest generation Cat 422F backhoe and Cat 226B3 skid steer units, supplied and supported by southern African Cat dealer, Barloworld Equipment.

Powered by a Cat 3054C 56.5kW engine, the Cat 422F comes equipped with powerful, loadsensing, closed centre hydraulics; Caterpillar’s four speed Power Shuttle transmission, for onthe-go directional and range shifting; the signature Cat excavator-style boom; and bestin-class 205 degree bucket rotation, making it easier for the operator to dig square-end and flat bottom trenches. Meanwhile, for close-up work in confined spaces, such as on road construction sites, Cat skid steer loaders, with a range of optional attachments, provide excellent versatility. Directed by precision joystick control, the Cat 226B3 is driven by a Cat C2.2 T engine generating net power delivery of 42kW, with a tipping load of 1360kg.

Alongside current work for Bakwena, Kusile is also pressing ahead on parallel contracts, including one for Edwin Construction on a project in Brits, entailing refurbishment to one of the river bridges in the area. Kusile’s project scope here is to break, fix and erect new guard rails. In the meantime, Kusile has had a sub-contacting team working on Edwin Construction’s P23/1 road rehabilitation project from Wolmaransstad to SchweizerReneke in North West Province. ■ www.africanreview.com

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COnSTRuCTiOn

Project Management

introducing best international practices Developing a proactive management regime in order to deliver sustainable construction projects Murray & Roberts Western Cape was the main contractor on the Portside project in Cape Town, a leading green building landmark in Africa

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ajor African contractors such as Murray & Roberts Construction can play an important role in promoting sustainable construction in Africa.

“Obviously the further north into Africa you go, the less energy efficiency comes into play. However, it is still incumbent upon those countries to buy into the green agenda and they have the opportunity to do so a lot earlier in the development cycle than the industrialised countries have done.

It is really up to them to change legislation in such a way that it accommodates sustainability. Until that happens sustainable construction will have very little traction in Africa,” Gavin Taylor, chief

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operating officer, Murray & Roberts Buildings & Construction Africa, said. “Many foreign investors are effectively looking for resources to take out and this to date has been done in a largely unsustainable manner, and that needs to change.”

Taylor added that the oil and gas industries are taking the lead in introducing international best practice into Africa.

“These sectors are already measured by their home governments in terms of their own sustainability systems and procedures, which requires them to drive sustainability into the host country they are operating in. To require the host country to take that step is a tall order due to their different political and

African Review of Business and Technology - October 2014

economic drivers which can in the short term override the need for long-term sustainable solutions," Taylor said.

“There is a lot of work to be done in Africa.

Most of Murray & Roberts’ African experience is driven on the back of mature clients. In Africa there are a lot of resource hungry nations that are sometimes less than scrupulous in obtaining the resources they need to fuel growth in their home countries.

They do not leave much behind in terms of the social upliftment and much less so in terms of training and infrastructure. The infrastructure that remains is generally just what enabled them to extract those resources in the first place.” www.africanreview.com

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Project Management

COnSTRuCTiOn

To be successful in Africa, generally, you have create local partnerships that are always based on a win-win scenario whereby knowledge can be transferred into those local businesses.

Simultaneously, there is a two-way transfer, which helps de-risk a project” Skills and experience to raise standards Murray & Roberts Construction has access to the latest skills and experience through its global operations, which is a major advantage in Africa. Taylor noted that a lot of South African expertise has migrated into Europe, the Middle East and Australia over the years, and that not enough has been done to attract these expatriates back to help develop the continent.

“Generally in times of economic downturn we export a lot of expertise. Those people pick up skills that are answering to developed world standards and the like, and I do not think we do enough to attract those people back.

“In order to be able respond to all the pressures being exerted on the construction industry, you need all the tools at your disposal. I think we can start re-importing skilled African people in order to engage them in what could guardedly be termed a real socio-economic revolution in Africa, never mind South Africa, given the vast oil and gas reserves that have been discovered on both the East and West Coast in addition to the mineral resource treasure trove of the continent. What we have to ensure is that such natural wealth is harvested with the sustainability of Africa being at the forefront of the development agenda.”

Looking for the upturn While the South African construction industry is at the bottom of its economic cycle at the moment, Taylor predicts a slow upturn.

“That is partly due to our socio-political exposure in the international press, which has detracted from foreign investment. However, if you look at the existing infrastructure we have in the country, we need to invest in long term maintenance programmes to insure that we negate going backwards and invest in new infrastructure to ensure prosperity in the future. South Africa still remains a destination of choice for companies that want to springboard into Africa.”

With a lot of attention focused on the new regional growth hubs of Ghana and Nigeria in West Africa, Taylor pointed out that these www.africanreview.com

economies are mushrooming from a low base.

“We need to be far more aware of cultural differences in Africa and respond to them in such a way that is sensitive to geopolitics rather than just exporting wholesale what has worked in a South African context. People are responding more positively to Africa.”

This means that Africa itself is in a much stronger position to drive its own sustainability agenda, for example.

“There are opportunities, but whether or not the political masters in Africa allow these to be acted upon is the big issue. A question mark hanging over most developing countries in Africa is that they are perceived as weak in tackling corruption; the attendant cost of doing business is therefore seen as unsustainable.

However there are many countries that are maturing and positioning themselves at the forefront of the African Renaissance.”

Successful and sustainable The key to successful business in Africa is through local partnerships.

“I definitely think we have an opportunity to change the perception of locals about foreigners coming into their countries, but only if this includes a sustainable legacy. To be successful in Africa generally what you have to do in my view is create local partnerships that are always based on a win-win scenario whereby knowledge can be transferred into those local businesses. Simultaneously there is a two-way transfer, which helps de-risk a project from our perspective. We have commenced with a number of transfer programmes whereby our selected partners in Africa receive training on the Murray & Roberts way of conducting business. That is not to tell them this is the only way we are going to conduct business, of course. They need to guide us in terms of what systems they lack and what would work for them in their own countries and what would not work. You do not just want to impose systems on them; we want to ensure that whatever we add in terms of efficiencies does not place a burden on those companies that in itself becomes unsustainable.” ■

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CONSTRUCTION

Telehandlers

Hiring new models for greater reach There is a new generation of rotating telescopic handlers, developed and supplied by Magni

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he technical features of the new with less wires going round the machine and it makes the aftersales range of machines from Magni service very easy and fast. are impressive. The step to the To conclude, what really makes the difference is that Magni TH is owner second generation of rotating of the software, which completely manages the whole machine and gives telescopic handlers starts from the the company the possibility to customise and realise very special machine cabin; in fact all Magni range has as a and application according to the needs of the customers, for example standard equipment a fully closed and Magni TH has been able to make a completely remote controlled pressurised cab, which is 15cm wider machine giving the possibility to manage hydraulic movements, than the one of our competitors, with 100 per cent inlet air outriggers and transmission from remote and from the basket. filtration. Moreover the cabin has a completely windshield made of glass, which starts from the bottom up to the back of the operator.

Ready for rental fleets Also the interface for the operator has completely changed into a “user Concerning the rental market, Magni TH has developed friendly” touch screen display, manageable also through an some specific models to push the philosophy of this automotive style joystick. This interface has five main market to higher models. In fact the RTH 5.23 pages which are dedicated to manage the whole has been developed for a market which, machine: driving page, stabilisers page, dynamic despite the economic crisis, needs high level load safety system page, command page for cabin machinery with better performances, safer (air conditioning, lights, etc...), limit page and with a reasonable price. This model is (limitation of rotation, lifting height and main the perfect compromise between prices hydraulic speeds). The screen has also a very and performances; in fact, it maintains all useful integrated diagnostic, which gives to the the comforts of the RTH range, as operator all the error codes concerning all pressurised full visibility cab with standard machine’s components and makes the aftersales air conditioning, 100 per cent air service very fast and simple. filtration, interactive touch screen and The RTH 5.23 has a wide working Another important step is the hydraulic circuit presents a system for the automatic area and better load performances which is divided in two main lines one for the identification of attachments, transmission, which is electronically managed and works at 450 bar, patented by Magni TH, which exponentially improves the worker safety. composed of a Bosh Rexroth hydraulic pump and a Bosh Rexroth In comparison to the 21m working height models on the nowadays hydrostatic motor with Dana Spicer Axles; and the other for all hydraulic market, the RTH 5.23 presents extremely performant features since it movements of the machine, which is Load Sensing, and works at 350 has a wider working area and a better load performances. Instead, in bar with face seal fittings. comparison to a 25 m it has a very similar load chart in reach, with a Magni TH has also obtained two patents on outriggers; the first is a lower price. Moreover this model is manufactured on a smaller chassis completely new system which combines the telescopic with pivoting with pivoting outriggers, this means a more compact machine with a system and ensures very good performances in term of capacity. The very simple and fast stabilisation system. All that makes the RTH 5.23 second is an optimisation of the existing scissors stabilisers and the very suitable for rental fleet and for companies, which require a very patent is based on the opening and retracting process; this system performing machine with a load chart similar to other models of a ensures the best performances, despite its compactness and reduced bigger size, on the market at a very reasonable price. Also the RTH 5.21 weight in comparison to other models on the market. of Magni TH is very suitable for rent because it has a very simple Also the boom has been completely renewed, since all the hoses are stabilising system which is made with pivoting stabilisers instead of inside its sections and a simpler and lighter quick fit with an automatic scissors ones and allows to have a very performing load chart also with recognition of attachments has been developed. In addiction the system a reduced area of stabilisation than our competitors on the market. of extension and retraction of the boom and of the hoses’ path has been Two other models which are very suitable for rental fleet, in highly patented to avoid friction between hoses, the falling down from the industrialised countries where the rental with the operator is usual, are pulley or the going into the interspaces between boom sections causing RTH 5.26S and RTH 5.30. These machines are extremely optimised if we their breaking. The result is a lighter and long lasting boom. compare their performances to their size, weight and price.

Another point which makes the difference on Magni TH range is the It is clearly true that all these models are also very suitable for a final electrical circuit, which is completely in CAN BUS, so it is very simple, customer who wants to buy quality. ■

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Telehandlers

CONSTRUCTION

Designed to deliver on rental T

he Cat TH414C GC and TH417C GC telehandlers are designed specifically to meet the requirements of rental-fleet operators for low operating costs, simple maintenance, reliability, durability, and ease of operation. The new TH414C GC and TH417C GC have rated load capacities of 3,600kg and 4,000 kg, respectively, and maximum lift heights of 13,850 and 17,000mm. Heavy-duty construction of the boom and frame, field-proven power-train components, robust hydraulic system, and intuitive operator’s station combine to ensure maximum return on investment.

The new GC models use a four-cylinder, 3.6litre engine with a power rating of 74kW (99.8hp). Designed to deliver the performance of a significantly larger engine, the compact TCD 3.6 L4 engine is extremely fuel-efficient for low operating costs.

Equipped with a maintenance-free diesel oxidation catalyst (DOC), the engine meets EU Stage IIIB emissions standards; for regions where the DOC is not used, the engine meets EU Stage IIIA standards.

The 3F/3R power-shift transmission in GC models is designed for smooth shifting, providing optimum operator control and load retention. The new telehandlers feature permanent four-wheel drive and use a limitedslip differential in the front axle to ensure ample traction in any operating situation.

Dual-axle braking via large oil-immersed disc brakes provides superior stopping power, and the front brakes also serve as the parking brake, ensuring both positive action and reliability, compared with an external parking brake exposed to the elements.

For maximum reliability in harsh operating conditions, the hydraulic system in GC models uses a robust gear pump, and the system’s flow-sharing main valve provides smooth, responsive control of three simultaneous operations. All hydraulic functions, including stabilizer actuation and auxiliary hydraulics, are fully proportional and controlled via a single joystick for intuitive operation and reduced operator fatigue.

For added versatility, the TH414C GC and TH417C GC are equipped with a standard “Integrated Tool Carrier” quick coupler that is www.africanreview.com

Cat’s telehandlers are designed specifically to meet the requirements of rental-fleet operators

compatible with other Cat telehandler models and can accommodate standard and side-shift carriages, general-purpose and light-material buckets, four-metre truss boom, and lifting hook.

The boom is a heavy-duty structure featuring an external-cylinder design and chain drive, which combine to deliver speed, excellent load capacity at full reach, and ease of maintenance. The boom sections extend in a synchronous manner, resulting in even loading of the wear pads and added service life. GC models also feature a heavy-duty frame, constructed for long-term durability and using a lowered boom-pivot pin that significantly enhances right-side and rear visibility.

To further enhance all-around visibility and to reduce operating expenses, the GC cab features large flat glass areas. For the operator’s convenience, switches are clustered by function, and a new instrument/dash panel is designed for at-aglance reading. The design of the cab’s door sills allow the cab floor to be easily cleaned with a hose.

GC models also have a built-in theftdeterrent system, which requires operators to enter a code before the machine will start.

Once activated, the code can be conveniently entered via buttons on the joystick.

Adding to the overall low-cost of operation for the new TH414C GC and TH417C GC, all daily maintenance points are conveniently located and accessible from ground level, including drain ports and filters. ■

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CONSTRUCTION

Infrastructure

Building pathways to new residences Esor Construction works on pedestrian bridges at an integrated housing and infrastructure in Johannesburg, South Africa

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hrough its subsidiary company Safdev Tanganani, Esor Construction has been the turnkey contractor and developer of a R2bn (US$185.75mn) integrated housing and infrastructure development in Diepsloot, Johannesburg. The 237 hectare project will ultimately see the construction of 9,000 houses of various typologies and tenure options, three schools, five multi-functional nodes, three shopping centres, five neighbourhood parks, a magistrate’s court and a hospital.

“We started constructing two landmark and iconic pedestrian bridges across William Nicol Drive to the value of R52mn in July 2013. These bridges form part of the bulk infrastructure for the development and will link the current Diepsloot to the new,” Duncan said. “Currently we are utilising our civils capabilities for the two pedestrian bridges while our building skills will be deployed for some of the top structures. There is not a single free standing top structure in the entire development as everything will be either semi-detached or multi-storey units. In fact the bulk of it will be three storeys, making it one of the highest density integrated developments in Gauteng at the moment.

That is the way that designs are moving and is inevitable given the extreme shortage of well located land and the exorbitant costs of providing bulk services.”

Duncan added that Diepsloot has been classified as one of the top seven National Priority Projects in South Africa at present.

“We manage all the sub contractors, whether electrical, civils or building, while the professional team at this stage is managed by Gauteng Province through its appointed Project Manager. Another requirement from Province is that 30 per cent of the work by value has to be undertaken by local resources.” Duncan says that Esor Construction brings in the necessary supervisory skills and then deploys small focused teams to acquire skills as they carry out the actual work. However, the pedestrian

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The North Bridge taking shape over William Nicol Drive near Diepsloot.

The iconic ‘bird wing’ structures can be seen on the South Bridge

bridges are challenging monolithic structures that are being built largely without the involvement of smaller contractors. “The pedestrian bridges presented an engineering challenge in that it is tricky and difficult work undertaken at a substantial height over a major road.”

that projects are being kick started and the banks are lending again. The government also has to deliver in terms of its national housing budget.”

Looking at some of the latest trends in the housing sector, Duncan says that the Diepsloot development will incorporate a large number of so called CRUs or Community Rental Units in order to cater for the bottom end of the market. “Rental is becoming a bigger and bigger component of the affordable and subsidised housing markets.”

Duncan concluded that the Diepsloot project is a landmark integrated development not only for Gauteng but for South Africa as a whole.

“It is developments such as these that are advancing the affordable and subsidised housing markets in the country. There are a number of trends being pioneered at Diepsloot, such as the Total Street Concept, where the entire road servitude is paved in order to accommodate pedestrian walkways and cycle and traffic lanes. “ Such extensive blacktop is more expensive but it is a far better concept in terms of urban planning as it definitely enhances the living space of the residents.” Duncan adds that the fully subsidised housing units at Diepsloot will feature insulation and even double glazing, in addition to a 20m2 rental unit attached to each 40m2 house to order to create micro landlords and help generate additional income for residents.■

Managing the new environment The presence of threatened giant African bullfrogs on site has necessitated onerous requirements in terms of the environmental management plan.

“The idea is that as we start building on site, through some ‘structured coercion’ the bullfrogs will migrate down to the vlei portion of the site that has been designated as a wildlife reservation for their preservation.”

Due to the extent of the project it has also not been decided yet as to whether or not the infrastructure and housing components should be tackled jointly or separately.

“From a contractor’s perspective it will be wonderful just to complete the infrastructure for the entire development before building the first house.”

Early signs of growth According to Duncan, the South African housing market is showing green shoots at present.

“We are still sitting with a very under supplied market especially on the affordable housing side. There are signs of growth in

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CONSTRUCTION

Technology

Changing perceptions of Chinese equipment A customer-oriented production philosophy to deliver the highest quality construction equipment at a lower cost in a shorter time

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handong Lingong Machinery Co., Ltd. is a Chinese manufacturer with a difference. The company’s customer-oriented production philosophy delivers the highest quality construction equipment at a lower cost in a shorter time. The company does this by using advanced technology and lean manufacturing processes. Newer, better, smarter – in short, that’s what makes Lingong different.

For years, construction equipment from Chinese manufacturers was perceived as cheaper in cost but inferior in quality and technology when compared to foreign brands. But now that perception has changed. A study of Chinese construction equipment manufacturers, conducted by broker CLSA, turned this theory on its head by putting Chinese-made diggers through grueling tests to measure their productivity, durability and fuel efficiency. Test results showed that technology gaps between the best Chinese manufacturers and their foreign rivals are now “almost non-existent”. So significant is this narrowing of the gap between Chinese and established Western brands that the results of the CLSA study formed the basis for an article that appeared in a December 2013 edition of The Economist.

The lower cost and higher quality of Chinese construction equipment is helping manufacturers develop their international operations and one company enjoying increasing success in markets outside China is Shandong Lingong Machinery Co., Ltd. (known as Lingong). The company’s equipment is branded SDLG and Lingong is focused on providing durable and reliable equipment at a lower cost.

A major factor in helping the company achieve this is its manufacturing and design process, the Lingong Production System (LPS). This process eliminates waste, improves efficiency and, most importantly, maximises quality. Five years after the philosophy was first implemented into production facilities worldwide, Lingong can demonstrate tangible results in the form of shorter lead times, lower prices and upgraded quality. LPS philosophies have been applied to the production of its full range of SDLG-branded wheel loaders, excavators, road machinery and other construction equipment.

But it’s not only a change in process that’s allowing Lingong to further improve its products. There have also been significant investments. For example, in August 2013 it opened a US$10mn assembly hall in Pederneiras, Brazil. At present there are four SDLG crawler excavator models produced in Brazil, ranging from 13.8 t to 24.3 t.

A continuous journey to success The Lingong Production System incorporates many of today’s most advanced manufacturing processes with Kaizen as its central point of focus. The Kaizen philosophy clearly defines both human and mechanical processes to deliver the highest quality end product in the most efficient and cost-effective manner. Lingong’s factories in Linyi and Pederneiras have been rigorously benchmarked against

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The SDLG938L, which boasts a threeton lifting capacity (1.8m3 bucket)

the best factories in the world. Wen Degang, head of operations at Lingong’s flagship factory in Linyi, China, explains that manufacturing process improvement is an ongoing journey that requires commitment from every employee – from the factory floor to senior management.

“There’s been a huge change in the way our employees think since the implementation of LPS – they are much more focused on working efficiently and they understand the value of what they’re doing. This has motivated everyone to do even better for our customers,” he said.

Agile and responsive LPS also incorporates Just In Time manufacturing concepts that allow production facilities to respond to peaks and troughs in demand quickly and cost-effectively by keeping stock inventory to a minimum.

“As the export sales of SDLG products continues to grow, managing volumes, optimising lead times and ensuring quality becomes ever more important,” Degang explained. “With Just In Time processes, components are not only delivered when we need them, but where we need them. Direct to the point of use on the factory floor. This simplifies workers’ tasks at each stage of production and reduces the capacity for error.”

Lingong has invested a great deal of time and money into its production facilities and people. The company’s senior management team is made up of highly qualified professionals – all highly educated and experienced.

“Our young and ambitious team understands the importance of being different in this market. Our new factories, advanced production system and knowledgeable people are what makes SDLG different,” said Degang. ■ www.africanreview.com

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Housing

CONSTRUCTION

Success with low-cost housing in South Africa How Esor Civils has surpassed market expectations, working on projects to provide 1,000 affordable accommodation in KwaZulu-Natal

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ince entering the low-cost housing sector at the start of 2014, Esor Civils has experienced success beyond expectation, and is presently working on two government subsidised projects to provide 1,000 low-cost houses in the village of Enhlangweni, in the Umzumbe municipality near Ixopo in KwaZuluNatal, and 500 units in the village of Ezinqolweni, in the Mthimude municipality near Port Shepstone in KwaZulu-Natal. More recently, Esor Civils has secured the provision of low-cost housing in Bhobhoyi, close to Port Shepstone, and is earmarked for a further project in the Umzumbe area, and has also set its sights set on the Eastern Cape.

“Low cost housing is something quite new for us and it’s working out very well,” Mark Rippon, managing director of Esor Civils, said. “We already have a diversified portfolio that includes road building, mining and township infrastructure work, water and sewerage reticulation contracts and concrete projects for government, major mining houses and the private sector. Although our move into low-cost housing is at the inception stage, we’ve been very excited at these early successes and we believe there is significant potential to expand into this sector of the market. We’re proving that we’re reliable and able to deliver these projects to the satisfaction of all stakeholders.

“Low cost housing is still very much a government focus and the recent increased subsidy will see the specifications improve from the two-roomed 40 m2 dwelling with rainwater harvesting and an

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A low-cost house with rainwater harvesting

outhouse, that we are building at Muzumbe and Thimude, to dwellings of the same size but now plumbed and electrified and including an inside bathroom with a basic hand basin, toilet and shower. The upgraded specifications will also be applicable to the scope of the Bhobhoyi and second Muzumbe projects.”

Engineering and building to design On these projects Esor Civils has teamed up with Consulting Engineers Bigen Africa, a leading design engineering company with a strong presence in southern Africa and a growing African footprint. Bigen Africa takes responsibility for the design of the houses, provides site supervision during construction and conducts quality assurance before the houses are handed over.

On each low-cost housing project, the Esor Civils team identifies local emerging sub-contractors and supports them with the procurement of materials and the provision of training, effectively equipping them with experience and marketable capabilities.

Esor Civils, a division of the Esor Group, successfully secures various tenders for public sector projects at government, provincial government and municipal levels. It also boasts the highest possible 9CE and 9GB grading from the Construction Industry Development Board. Esor Civils has a comprehensive plant inventory and employs more than 2,000 people, ranging from artisans to managers, surveyors to planners. ■

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CONSTRUCTION

Excavators

Bobcat launches new compact excavators Bobcat has launched the new E17, E19 and E20 compact excavators - the next generation of one to two tonne excavator models from the company

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obcat’s new high performance excavators provide an unmatched combination of class-leading breakout forces, working range, smoothness of workgroup functions, hydraulic output and fast cycle times.

The new models are towable on trailers for up to 2000 kg, with transportability further enhanced by new tie-down points. An extendable undercarriage, automatic slew brake and advanced diagnostics and instrumentation are are featured on all three excavators.

Ultimate operator comfort and safety The new excavators, similar to previous models, are constructed around the operator, offering optimal ergonomics for operators of all sizes. The new cab design on the excavators feature large windows and narrow pillars to enhance all-around visibility. This offers both operator comfort and safety.

The new E20 2 tonne model is a Zero Housing Swing (ZHS) excavator, which means that despite featuring a full-sized cab, it still enhances Zero Tail Swing (ZTS) functionality. The ZHS configuration in the E20 excavator therefore offers 320° of free rotation when working close to structures, without sacrificing on operator comfort or performance.

Access to the operator’s seat in the E17, E19 and E20 is easy thanks to the large door opening and the fact that the control console rises completely out of the way when the operator is taking their seat.

There is ample space for the feet with a flat floor for easy cleaning with floor panels that can be easily removed for service purposes, ergonomic pedals and easy access to all controls, storage box and cup holders. In addition, when not in use, the foot pedals can be folded back to further increase room for the operator’s feet.

The superior comfort offered by all three models allows operators to work for hours at a time.

One-of-a-kind-in-class features Offering first-class comfort and safety, special features include an optional, unique-in-class joystick control of boom swing and auxiliary hydraulics with the choice of three auxiliary modes for more precision and more leg room; optional auto shift drive motors and seat options ensuring operator comfort.

The excavators have a new control panel that ensures all parameters can be checked quickly and easily in a single viewing, including standard readouts such as the fuel gauge and RPM meter but also auto engine shut-down; auto glow plugs countdown; auto cab lights switch-off and audible alarm (in case of malfunction).

Other features include an easy-to-operate gas spring-assisted light and rigid frame front window, keyless ignition for optimal safety, a battery kill switch for storage and to prevent theft and an automatic slew brake for safe parking and transportation.

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Bobcat has recently launched the next generation of compact excavators, including its E19 model.

The unique hydraulic systems on the new E17, E19 and E20 models make the best possible use of the engine power on the excavators.

Fast cycle times, combined with smooth control of the class-leading breakout forces provide maximum productivity. Boom and arm cylinder cushioning, another unique feature in this class of excavator also increases overall smoothness.

Offering best-in-class proportional auxiliary flow, the new E17, E19 and E20 models are highly versatile in operating a various range of attachments.

Stability is vital for making maximum use of the digging forces and lifting capacities. Optimum stability is provided by fully expanding the retractable undercarriage and using the optional long dozer blade. In addition, though it is a true ZHS machine, the stability of the E20 model is comparable to that of best-in-class conventional machines on the market.

The superior dumping height enables loading trucks to carry out tasks with no issues, while the reach at ground level greatly lowers the need to reposition the machines when digging. Picking up and placing heavy materials have been made simple with the new features of all three models. ■ www.africanreview.com

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Gold

mInInG

Is gold losing its sheen on the market?

The yellow metal has been seeing a slump in production as well as cost and this is a reason for worry for gold diggers Data from the Ghana Chamber of Mines in Africa shows that though the 2013 outturn in gold output was significantly high

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mong the many minerals found in West Africa, gold has long been dominant with new discoveries made, and new mines open almost on an annual basis.

Most of the discoveries and mines are located in Ghana, Africa’s biggest producer after South Africa.

Currently, there are more than 10 mining companies operating in Ghana. Gold Fields of South Africa holds a 71.1 per cent interest in the country’s largest mine at Tarkwa and the Damang gold mine in a joint venture with Toronto-based IAMGOLD Corporation.

AngloGold Ashanti, also in South Africa, operates the Bibiani and the Iduaprem open pit gold mines and the Obuasi underground gold mine. Toronto-listed Golden Star Resources also holds a 90 per cent interest in www.africanreview.com

the Bogoso/Prestea and the Wassa open pit mines and a 90 per cent interest in the idled Prestea underground mine while Newmont Mining Corporation of the USA wholly owns the Ahafo gold property and an 85 per cent interest in the Akyem gold property. Other companies exploring for gold in Ghana includes Adamus Resources, African Gold, Moydow Mines International, Pelangio Mines, Perseus Mining and Xtra Gold Resources.

Increased activity has seen gold overtake cocoa as Ghana’s leading export earner, constituting 37.6 per cent of the country’s total merchandise export in 2013 and 43 per cent in 2012. However, the highest slump in the price of gold in 30 years has robbed the sector of the benefits in increased output.

Data from the Ghana Chamber of Mines

shows that though the 2013 outturn in gold output was significantly high, it represented a marginal one per cent increment over that recorded in 2012.

“The rapid withering of the yellow metal’s price, combined with the lethargic growth in output to set the stage for a tumble in revenue,” the Chamber said in its 2013 annual report. While gold production increased to 3,192,648 ounces in 2013 from 3,166,483 in 2012, earnings from its export plunged by 13 per cent to about US$3.2bn in 2013, a development driven largely by the 10 per cent drop in the average price of the metal.

The meagre one per cent growth has been attributed to declines in production from AngloGold Ashanti’s Obuasi mine, Gold Field’s Tarkwa and Damang mines, Golden Star’s

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mInInG

Gold

Bogosu Prestea and Chirano Gold Mines.

Newmont, however, poured its first gold at its Akyem property in the last quarter of 2013 while AngloGold Ashanti’s Iduaprem, Golden Star Resources’ Wassa, Newmont’s Ahafo, Adamus Resources and Perseus Mining registered improvements in their output.

Gold Fields recorded an 11 per cent drop in its total output — the single largest decline.

Despite the slump, Gold Fields retained its position as Ghana’s leading gold producer.

Lingering operational challenges caused a decline in AngloGold Ashanti’s Obuasi output by 16 per cent while its Iduaprem output recorded a 22 per cent growth. However, the significant dip in the Obuasi output led to an overall drop from 15 per cent in 2012 to 14 per cent in 2013. Production was also low at Golden Star Resources’ Bogoso/Prestea mine.

The company’s Wassa mine, however, recorded a 27 per cent jump, giving the company a cumulative increase of six per cent in 2013.

Chirano Gold Mines’ output also decreased by six per cent, as a result of transition challenges with shifting from contract mining to owner mining during the year.

e rapid withering of the yellow metal’s price, combined with the lethargic growth in output will set the stage for a tumble in revenue

Gold Fields recorded an 11 per cent drop in its total output — the single largest decline

Those that bucked the downward trend include Newmont, whose first gold and a two per cent increase in output at the Ahafo mine saw its share in total gold output improve by four per cent to 22 per cent. In its second year of production, Perseus enjoyed a seven per cent surge in its output in 2013, while Adamus Gold Resources registered a nominal increase of 0.6 per cent.

With an expected delay in recovery from the downturn in the bullion market due to strong investor appetite for liquid financial instruments and projected stable price levels, gold prices are expected to remain bearish. In Ghana, cost pressures stemming from input rationalisation measures in the mining industry, change in excise tax on petroleum products from specific to ad-valorem,

With an expected delay in recovery from the downturn in the bullion market due to strong investor appetite for liquid financial instruments and projected stable price levels, gold prices are expected to remain bearish

shortfalls in energy supply and increases in utility tariffs, as well as increase in ground rent, will further deteriorate the mood of the mining industry.

According to the Chamber of Mining, the average cost of producing an ounce of gold in Ghana grew from US$809 per ounce in 2012 to US$951 per ounce in 2013. “Relative to other mining jurisdictions and the global average, Ghana’s growth rate in cash cost is the highest.

Likewise, all-in sustaining cost at the global scale, which comprises depreciation, depletion, amortisation as well as cash cost, was estimated at US$997 while that of Ghana was US$1,378,” the chamber added.

It is against this background that analysts project the country’s gold production to fall 500,000 ounces this year. The Ghana Minerals Commission has estimated output for 2014 at 3.1mn ounces, from an initial target of 3.6mn. “We will definitely record lower volumes this year,” Daniel Krampah, commission’s assistant manager of financial analysis, told newsmen in Accra earlier this year. “Low gold prices are not motivating mining firms to increase production. Once the price of the commodity is going down, the incentive is not there to produce more.

The lower rate makes it unprofitable for mining companies to mine low-grade ore.

Some companies have placed their mines under care and maintenance.”

Ghana’s gold production climbed to a record 4.3mn ounces in 2012 from 3.6mn ounces the previous year after prices reached a record in September 2011. Bullion slumped 28 per cent in 2013 as some investors lost faith in the metal as a store of value amid a rally in equities and muted inflation. “The mine suspensions mean we will be losing about 500,000 ounces of gold annually,” said Krampah. ■ Jon Offei-Ansah

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African Review of Business and Technology - October 2014

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Services

mInInG

Condition monitoring for optimum operations I

n an extremely tough economic climate, condition monitoring is gaining momentum in the mining industry as a cost-saving option that enables plant operators to monitor equipment output, preempt failures and capture valuable long-term data on plant performance. While conventional condition monitoring tracks a specific parameter of condition to identify a change indicative of a developing fault, vibrating equipment specialist Joest adds advanced testing and measuring technology to the mix, helping customers achieve a continuous supply of quality production tonnage, while protecting company assets and reducing the total cost of ownership.

Theresa Walton, general manager service at Joest, said, “Our activities in this area are focused on mitigating the risks associated with each unique customer plant. We differentiate ourselves in the marketplace not only through the quality of our products, but also by the high level of service we offer and by the advanced testing and measurement technology we have developed.”

Joest tailors its test and measurement technology to suit each

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customer’s specific needs, taking into account skills levels at the plant, as well as production and quality requirements, and linking these factors to existing systems. Based on this customised approach, the company is in the process of installing sensors on its equipment at several customer plants.

“However, installing dozens of sensors doesn’t take away from the need to maintain the equipment to operate within its specifications and to refurbish it within appropriate cycles,” the general manager said.

Joest provides a full spectrum of service capabilities, from periodic on-site service calls, to full on-site maintenance for the life of the equipment. It is one of the largest South African owned and operated OEMs supplying custom designed vibratory equipment solutions for a broad spectrum of duties to Africa’s bulk materials handing market.

Joest’s specialist capabilities are reflected in its track record of long standing installations operating efficiently year after year in the continent’s most arduous conditions. ■

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mInInG

materials Handling

‘Cascade’ effect on standard chute systems Weba Chute System has introduced an alternate way to do away with the loss of bulk materials and streamline transfer of mining products like ore and coal

T

he primary requirement in transfer point design is the ability to guide and control the flow of product from the moment it enters the system until it exits. Unfortunately, many existing chutes on brownfield projects often fail due to a combination of an initial disregard for the design criteria, changes in the system parameters, or a lack of maintenance.

It is, therefore, critical to consider the basic chute specifications when addressing a material transfer problem. This calls for a thorough knowledge of transfer point design as well as the ability to determine best practice for an application and the willingness to customise each design to these specific requirements.

All of these factors are catered for by the Weba Chute System concept that incorporates a supertube or cascade effect, which results in material running on material at all times.

Mark Baller, managing director of Weba Chute Systems, said that during the development stages of this locally manufactured and patented product, specific attention was paid to minimising the abrasive wear induced on the chute’s wearing components.

“We have proved through numerous successful installations of Weba Chute Systems that the correct use of our streamlined scientific approach to the dynamics of bulk materials handling completely eliminates the problems associated with conventional transfer chutes and results in significant cost savings,” he added.

Baller pointed out that the Weba Chute System is not an alternative to conventional chute systems. “It is rather a completely different and unique approach towards the control and handling of bulk materials. When viewed in slow motion one can see that the bottom layer of particles in the product stream moves in a tumbling motion rather than gliding down the chute.”

This motion results in significantly reduced

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The primary requirement in transfer point design is the ability to guide and control the flow of product from the moment it enters the system until it exits

wear and, in many cases, one finds that the lip remains completely covered by material, which results in it never needing replacement.”

Conventional chute design is often associated with the uncontrolled discharge of bulk materials, which is linked to escalated maintenance and replacement costs. In addition to this, the presence of dust with conventional transfer points is an aggravating factor where products such as coal and mineral ores are handled or processed. With stringent environmental regulations in place to prevent excessive dust emissions, government organisations such as the Occupational Safety and Health Administration (OSHA), Mine Safety and Health Administration (MSHA) and National Institute for Occupational Safety and Health (NIOSH) are tasked with closely monitoring

African Review of Business and Technology - October 2014

dust levels at all materials handling facilities.

The Weba Chute System takes material movement control to a new level with the design of the internal angle of the transfer chute matching the belt speed and in so doing spillage is either completely eliminated or greatly reduced. As an added benefit, the presence of dust is also greatly decreased.

By custom designing each transfer point, individual Weba Chute Systems are configured to control the direction, flow and velocity of the calculated volume and type of material processed in a particular application. The end result is a transfer point that substantially reduces maintenance expenditure in minerals processing, through increased productivity, decreased replacement and maintenance costs and increased adherence to environmental regulations. ■ www.africanreview.com

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SOLUTIONS

Minerals Multotec accelerates R&D into screening media products Screening media solutions provider Multotec is positioning itself for international market leadership over the next decade by accelerating its research and development (R&D) programmes across several focus areas.

“Against a background of deteriorating ore grades globally, we’re concentrating on providing optimal screening media solutions that add the value our customers requirements,” said Rhodes Nelson, newly managing director of Multotec Manufacturing. “Our R&D is being conducted within the realms of the customer’s activities and is being driven by the four key trends we’ve identified on the world stage: the need for speed to market, for high levels of product consistency and reliability, for OEMs to take on the role of solution providers and the ability to recycle our products on behalf of our customers at the end of their working life.”

Multotec’s focus on mineral processing and its understanding of the metallurgical process allows the company to respond to these world trends and, in so doing, to identify new markets.

“We understand the importance of screening media and are very aware that part of the value add we need to offer is helping customers to maximise their screening efficiencies,” says Nelson. “Our R&D activities enable us to determine how a specific product performs in a given application and then to optimise this performance. Mining companies today want predictability, particularly as they come under increasing pressure to extract maximum value from their existing assets.”

An area attracting increasing attention within Multotec’s R&D programme is the optimisation materials of manufacture and, notably, the company has already made major advances in the rapid production of heavy duty and light duty rubber screen panels in all shapes and forms, using a variety of compounds.

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African Review of Business and Technology - October 2014

An overview of Multotec's injection moulding manufacturing facility

On-going research and development includes the use of best practice design software

Multotec manufactures the tooling used to produce its screening media

Quality inspection of injection moulded screening media products during the manufacturing process

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SOLUTIONS

Engineering How Hatch Goba supports hydrometallurgy

The hydrometallurgy group from consulting engineering and project implementation firm Hatch Goba is a multi-disciplined team of professionals that is able to provide trusted design, evaluation and delivery of projects through all phases of development in base metal industries.

Hydrometallurgy is a technique within the field of extractive metallurgy involving the use of aqueous chemistry for the recovery of metals from ores, concentrates and recycled or residual materials. The Hatch Goba hydrometallurgy specialist group is a division of the company's non-ferrous metals group and focuses primarily on the extraction and purification of base metals that include; nickel, copper, cobalt and zinc and associated precious metals such as platinum group metals and gold. Another metal of interest is titanium - both metal and titanium dioxide.

According to Hatch Goba practice lead for hydrometallurgy Africa, Ellen Minnaar, the group boasts a thorough understanding of www.africanreview.com

fundamental hydrometallurgical principles and of cutting-edge technologies currently being explored. Ms Minnaar said, "The group utilises its extensive experience and state-ofthe-art technical tools to custom design equipment and unit operations for the full range of hydrometallurgical flow sheets and process steps."

An example of this advanced technology is Integrated Design Engineering with Advanced Simulation (IDEAS) - a process simulation software package that enables the performance of steady and transient state mass and energy balances, tracking of components, compounds, element flow and concentration and the handling of particle size distributions.

"Process simulation involves the modelling of a system to obtain mass and energy balances that form the basis of process and equipment design. Hatch Goba boasts extensive experience in steady state and dynamic process modelling using cutting edge IDEAS software, which enables

us to test and verify design concepts and process control logic quickly, at low cost and low risk," she observed.

Minnaar added that the advanced features of IDEAS control systems can also be tuned to mimic real world plant behaviour.

"Combined with Hatch Goba operational expertise, this provides a virtual environment to develop and test optimisation solutions without compromising real world plant operation," she said.

Partnerships with Hatch specialist groups, including the Autoclave Technology Group (ATG), Specialised Engineering Analysis and Design (SEAD) group, and global Centres of Excellence for Solvent Extraction and Electrowinning Technologies further assist in providing world class levels of technical excellence. "These proven skills, combined with an excellent working relationship with clients, enables us to demonstrate our ability to provide quality deliverables in competitive timelines," Minnaar concluded.

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EQUIPMENT/ CLASSIFIED

Bobcat Excavator raises funds to combat cancer Promac Solutions Limited and Doosan Construction Equipment have jointly donated a new Bobcat E14 compact excavator, specially painted in pink, to Lynch Plant Hire Limited, one of the leading plant hire companies in the UK, to help raise funds for Lynch’s nominated charity, Breast Cancer Care, over the next year. The new pink E14 excavator was presented to Lynch at an unveiling ceremony at the company’s Family Plant Show and Operator Open Day in Brentwood in the UK at the end of August 2014.

The colour pink is the internationally recognised symbol of breast cancer awareness. Breast Cancer Care funds and supports every person affected by breast cancer to give them the very best treatment, information and support, and provides information and offers emotional and practical support to those affected by cancer.

Breast Cancer Care is the nominated charity for Lynch not only for 2014 but also all the way through to 2017 and the company has an ongoing schedule of events over this period to maximise support and donations for the charity. Lynch welcomes donations to Breast Cancer Care at www.justgiving.com/lynchplant Mark Kennedy, operations director at Lynch, said, “We are very grateful to Promac and Doosan for the generous donation of the Bobcat E14 excavator, which will provide a focal point for our efforts for Breast Cancer Care in 2014/2015. The idea of working with Breast Cancer Care is not

The new pink E14 excavator was presented to Lynch at an unveiling ceremony at the end of August 2014

just about trying to raise money for a good cause. It is also to highlight the work women are doing in plant hire already and to encourage more women to work in the industry.

The pink E14 excavator was the brainchild of Justin Scott Thomas, sales director at Promac, who said, “In collaboration with Doosan Construction Equipment, we are delighted to be able to support Lynch’s campaign on behalf of Breast Cancer Care. I’m sure the pink Bobcat E14 compact excavator will prove to be a great attraction at Lynch events to bring in more donations for the charity before it is auctioned off at the end of the year.”

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African Review of Business and Technology - October 2014

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