African Review September 2013

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

September 2013

African Review of Business and Technology


September 2013

Iveco’s African business model

Volume 47 Number 27


Building the market

at bauma


Mr. Venkatramana Gosavi, Regional Head, Growth Markets, Finacle




How Infosys helps banks to grow P36

Kenya flyers on an East African network P44

Improving a port in Mozambique P53

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Editor’s Note

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

September 2013


Iveco’s African business model


his issue of African Review reports on economy and finance, technology and transport, power generation, and construction and mining. Geographically, the principal points of focus are Nigeria, Botswana, South Africa, Kenya and Mozambique. The examination of Nigerian economic affairs, from page 26, offers insights into the nation’s identity programme, and also its commercial endeavours across the continent. Botswana’s development is represented on page 30. The advanced technological deployment to support education and training in Kenya is covered on page 38, and the Kenyan government’s vision of the nation as an East African transport hub is addressed on page 44. The construction of new logistics facilities in the Port of Beira, in Mozambique, is highlighted on page 53, amongst other construction stories. However, the primary focus of this issue is the inaugural bauma Africa, a massive promotion of construction and mining equipment and services being held in South Africa in September 2013. From page 67 to page 104, this issue offers a comprehensive account of the solutions available to see and to buy, as well as corporate news from key exhibitors. Furthermore, miners can read of technical developments, improving condition monitoring and on-site safety.


Building the market

at bauma

Africa Mr. Venkatramana Gosavi, Regional Head, Growth Markets, Finacle




How Infosys helps banks to grow P36

Kenya flyers on an East African network P44

Improving a port in Mozambique P53

Main cover picture: Steve Skinner/Volvo CE Inset, bottom left: Infosys Inset, top right: Iveco

Andrew Croft, Managing Editor


REGULARS 04 Agenda:

22 Bulletin:

Developments affecting business and technology

118 Solutions:

Fresh initiatives in African investment

The latest additions to product portfolios

P30 FEATURES 26 Economy and Finance Nigeria’s national identity card programme, and its enterprises in sub-Saharan Africa; Botswana’s programme of economic diversification; capital markets and African economies; and the investment BRICS enables in Africa

38 Technology and Transport Virtual resources for East African education; advanced telcommunications for trade; the automation of retail lending; and logistics systems to track shipments; using the Internet to improve cargo transport; a vision for air freight in Kenya; and Iveco’s increasingly sustainable and increasingly African - profile


49 Power Generator sales performance in Africa; and the development of gas power plants and wind power in southern Africa

53 Construction and Mining Upgrading port facilities in Mozambique; the attributes of excavators; building a more ‘local’ South African power facility; concrete for industrial flooring; roadbuilding for Kenya’s farmers; materials for housing; notes on an advanced paint system; innovators in telescopic handlers; explaining pipe threading; and a comprehensive appraisal of the forthcoming bauma Africa event for construction and mining firms; dewatering open pits; an overview of specialised excavation equipment; improving operational analysis; and the technology and practices to improve safety at mining sites

Audit Bureau of Circulations Business Magazines

Managing Editor: Andrew Croft Editorial and Design team: Bob Adams, Hiriyti Bairu, Lizzie Carroll, David Clancy, Kasturi Gupta, Ranganath GS, Prashant AP, Rhonita Patnaik, Genaro Santos, Zsa Tebbit, Nicky Valsamakis, and Ben Watts Publisher: Nick Fordham Advertising Sales Director: Pallavi Pandey Advertising Sales Manager: Jane Wellman Tel: +44 114 262 1523 Fax: +44 7976 232791 Email:

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

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

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

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

Nigeria: Bola Olowo Tel: +234 80 34349299 Email: Qatar: Saida Hamad Tel: +974 55745780 Email:

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

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Serving the world of business

African Review of Business and Technology - September 2013


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Agenda / North “‫ﺓﻙﺏﺵ‬.” for a borderless domain Arabic-speaking Internet users around the world will be the first to experience the next evolution of the Internet after Internet Corporation for Assigned Names and Numbers (ICANN), the global regulator of Web addresses, officially entered into a contract with dotShabaka Registry for “‫ﺓﻙﺏﺵ‬.” to become the world’s first Arabic new Top-Level Domain (TLD). ‫ﺓﻙﺏﺵ‬. (.shabaka, translates to .web in English) becomes the world’s first borderless new top-level domain and provides Arabic speaking Internet users with an alternative to non-Arabic Internet namespaces such as .com, .net and .org. It will be available to everyone wanting an Arabic online presence. Yasmin Omer, general manager at dotShabaka Registry, said, “As the first new top-level domain, ‫ﺓﻙﺏﺵ‬. is set to become the centre of all things Arabic on the Internet. It is an incredible achievement not only for us but for the entire Arabic speaking world. It will pioneer a new way for people to use the Internet that begins with the Arabic language.” Omer added, “‫ﺓﻙﺏﺵ‬. will have a global audience, with more than 20 countries in the Middle East and North Africa which use Arabic as an official language – a region that comprises over 380mn people. Arabic is also the fastest growing language online – with growth of more than 2,500 per cent in the 10 years to 2011. In spite of the boom in Arabic content online, users are still burdened with the need to use English on the Internet. Many websites and Internet applications force visitors to only use English. Through ‫ﺓﻙﺏﺵ‬., we are campaigning for a truly Arabic Internet experience from start to finish. “‫ﺓﻙﺏﺵ‬. domain name owners will be getting more than just a web address; they’re signing up for a cause, and becoming part of the movement to empower the Arabic language on the Internet. dotShabaka Registry’s vision is to build an Internet that facilitates end-to-end communication and collaboration for every user utilising only their native tongue.”

The total Middle East and North African (MENA) region comprises over 380mn people”

Building business in the Maghreb The presence of the Ministries of Transportation from Morocco and Tunisia at the Maghreb Infrastructure & Construction Summit - taking place 25-26 September in Casablanca, Morocco - will create an opportunity for all companies wishing to do business in the transport sector of North Africa. Morocco has seen an increase in its physical infrastructure development in the last three years, as there have been a number of development projects to rehabilitate and expand the country’s infrastructure. Large scale projects such as the Tangier-Med port, developing Casablanca airport, Casablanca-Tangier high-speed rail and many others, demonstrate the scale of infrastructure developments that the country is currently working on. Tunisia has made a significant start in rehabilitating its transport infrastructure and improving its business environment. Tunisia is located at the meeting point of Europe and Africa, with numerous transport infrastructure projects taking place in order to upgrade its ports and increase trade.

Islamic trade finance gains market credibility


ccording to EY’s Global Islamic Banking Center, Islamic trade finance could provide new opportunities and become the preferred choice for emerging rapid growth markets (RGMs) such as Turkey, Indonesia Malaysia, Qatar, Saudi Arabia and the UAE. RGMs are emerging as hot spots for global business and they promise to permanently alter the global trade scene over the next 10 years. Many of these markets already have strong trade links with other “core” Islamic finance markets, which offer new opportunities for growth for Islamic trade finance. Ashar Nazim, partner at EY’s global Islamic banking centre of excellence, says, “The increase of trade flows to the East and within emerging economies combined with growing interest in Islamic finance, means that Islamic trade finance is now a


African Review of Business and Technology - September 2013

serious alternative. A constant challenge for business leaders is to anticipate and interpret how global trade is changing, while understanding the opportunities and risks it creates. Boards and management of Islamic banks must take note. Trade, technology, culture, labor and capital will integrate at different rates across these markets and need to be anticipated when transforming the financial institution’s trade finance operations.” RGMs are now an increasingly significant part of the global economy. They will become an even more dominant force in global trade and as a result, businesses are going to have to adjust their strategies to reflect the increasingly regional pattern of world trade and in this context should now start to consider Islamic trade finance.

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Agenda / North Investing in plastic injection The Abraaj Group, an investor operating in growth markets, has backed Plastic Electromechanic Company (PEC), which specialises in plastic injection, the assembly of electrical equipment and harnesses, and medical products. Established in 2004 as a plastic injection company, PEC has grown to become an industrial group which has expanded its client base, products, industry and country exposure. It now serves top tier clients in sectors including the automotive, electrical and healthcare industries in Europe and the US. It is implanted in the Hammam-Zriba I.Z. on a field of 8,500 sq m. PEC was recently presented with an award by the Tunisian prime minister Ali Laarayedh for Best Offshore Company in Tunisia at the Tunisia Investment Forum 2013. With Abraaj’s operational and financial support through its controlled investment vehicles, PEC will now look to launch new products, expand further into Europe and the Middle East, and look at complementary acquisitions. PEC recently announced the launch of its Moroccan plant which will commence operations by the end of 2013 and will mark the third international site for PEC after China and France. With this Moroccan presence, PEC will be able to present a stronger value proposition to its multinational clients by providing a combination of costefficient injection solutions and closer geographic proximity to the assembly lines of its clients. Ahmed Badreldin, partner at The Abraaj Group, said, “Our investment in PEC fits our strategy and builds on our four other Tunisian investments in the pharmaceuticals and consumer goods sectors. Given its high standard of delivery and relatively short transportation time to Europe and the US, along with other cost advantages, PEC is well positioned for further organic growth and potential acquisitions.”

Additional Middle East aircraft Speaking in relation to recent business conducted with Gulf Air for Bombardier’s CSeries aircraft, Mike Arcamone, president of Bombardier Commercial Aircraft, said, “Over the past four years, Bombardier Commercial Aircraft has tripled its aircraft representation in the Middle East and Africa, and altogether, more than 200 Q-Series turboprops, CRJ Series regional jets and CSeries aircraft are in service with, or have been ordered by, operators in the Middle East and Africa. More than 2,600 Q-Series and CRJ Series commercial aircraft have been delivered to operators around the world, covering all continents and operating in diverse and often challenging terrains.”

Designed for the growing 100- to 149-seat market, the CSeries aircraft family combines advanced materials, leadingedge technology and proven methods to meet commercial airline requirements


African Review of Business and Technology - September 2013

Germany supports Desertec Foundation


re large-scale solar and wind power plants compatible with the interests and needs of people in North Africa? Will the local population be able to participate in and to benefit from industrial-scale projects? The Desertec Foundation is convinced they will. Desertec Foundation criteria for largescale power plant projects are intended to take the claims and expectations into consideration of people from all parts of civil society as well as justified interests from the industry involved in the realisation of such projects. "We are well aware of the fact that we cannot design those criteria in a theoretical approach by desktop work but rather by joining into an honest dialogue with people from the respective regions. Our aim in conducting this dialogue is to combine legitimate interests of investors and companies with important demands for a reasonable regional development," said Wolfgang Dörner, head of projects at the Desertec Foundation. The first step is to identify representatives of civil society who are expected to provide a reasonable contribution to this dialogue. It is individuals who engage in nongovernmental and non-profit organisations for social issues, sustainable development and the environment who are needed - also, local and municipal interest groups and people within the immediate vicinity of large-scale power plants are within the focus of this project. Desertec Dialogue is financed by the German Foreign Office with provision from the German government originating from the country's Energy and Climate Fund. The first events will be held in Morocco and Tunisia in autumn 2013.

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New improvemen ts in the 500 serie s loaders protect ■ Protected quick against damage couplers have no ex posed hoses to dam ■ Removable hose ag e guide makes it easy to route hydraulic ho ■ Lower rear frame se s to minimize attach protects tailgate fro ment wear and tear m obstacles, preven ts scrapes and bum ps on the jobsite


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Agenda / East Case meets customers in Kenya CMC Motors Group Ltd, Case Construction Equipment dealer for the Republic of Kenya, the Republic of Uganda and the Republic of Tanzania, recently held a VIP customer event to showcase products and after-sales support. The event, which took place in the grounds of the famous Carnivore open-air restaurant in the Langata suburb of Nairobi, was attended by 220 guests, including representatives of the Ministry of the Roads for the Nairobi District and from Uganda. At the heart of the event was a demonstration of the Case 580T tractor loader backhoe, SR150 skid steer loader, CX210B crawler excavator and 821F wheel loader, as well as a static presentation of the 845B grader. Case’s official demonstrator Steven Beardmore highlighted the new features and strong points of the models as the guests enjoyed an aperitif. The demonstration was followed by dinner and a show with live jazz music and traditional dancing. Solomon Muturi, managing director of CMC Motors Group, addressed the guests, expressing the pride he and his team felt for being a valuable partner for the construction industry of Kenya. He said, “Our aim is to support the development of Kenya’s economy with a total solution service that includes the wide range of highly productive and economical Case Construction equipment to excellent after sales service to ensure the long-term sustainability of our customers’ investment.”

Solomon Muturi, managing director of CMC Motors Group Ltd

Geothermals energised by AfDB A new project supported by the African Development Group (AfDB) is expected to exploit the geothermal potential in the Lake Assal region to enable Djiboutian population's access to a reliable, renewable and affordable source of energy. Currently Djibouti relies mostly on fossil fuels and some hydropower imports from Ethiopia. The majority of the country's current generation capacity is situated in Djibouti City. The existing power stations are old, polluting and expensive to operate. In addition, fuel imports are expensive and require important foreign-currency expenditure. The geothermal exploration project in the Lake Assal region is structured as Public Private Partnership, where the government of Djibouti is taking the lead on the first exploration and appraisal drilling phase. The private sector will be responsible for the production drilling, steam gathering system and electricity production and evacuation to the national grid.


African Review of Business and Technology - September 2013

Affordable, relevant communications needed


ngoing development of services provided by current mobile telecommunciations networks were at the centre of most discussions during East Africa Com, recently held in Nairobi, Kenya. Jose Henriques, VP data and online at Airtel Africa, highlighted the importance of affordability of data services, both in terms of data pricing and of devices. John Naranka offered the point of view of an enterprise involved in advanced services such as the Kenyabased social network Whive. Sessions also covered the services that are most likely to impact data growth in the region: content, mobile money, e-health, TV, mobile marketing and apps. Some keywords were repeatedly mentioned when discussing how to make services successful: affordability, user-friendliness and simplicity. Betty Mwangi-Thuo from Safaricom (who gave an update on the ever successful mpesa) also highlighted the importance of partnerships to ensure the success of communications services. The topic of e-health was covered by a presentation from a representative of Ogra Foundation, which works with and for vulnerable communities in Kenya to improve and promote health. And a new session called AppGig was dedicated to developing, promoting and monetising applications (apps) for East Africa which featured apps ranging from traffic news to education and health.

Network service delivery was the focus of most discussions and presentations at East Africa Com

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Kirloskar Brothers Limited


Kirloskar’s support for

African water supply How KBL helps Rand Water achieve significant work on South Africa’s water infrastructure


and Water (RW) provides bulk water to more than 11mn people in four of South Africa's provinces. Since 2010, and until 2015, the group is heavily committed to a R10 billion (US1bn) investment initiative, to deliver major renovations to the nation’s ageing infrastructure, mostly in relation to the augmentation and rehabilition of infrastructure. Headquartered in South Africa, Rand Water reports to the Department of Water & Environmental Affairs (formerly the nation’s Department of Water and Forestry). Throughout its long history, Rand Water has been financially self-sustaining - and its financials are affirmed by Standard & Poor’s A+ corporate credit rating for its long-term local currency and BBB+ for its long-term foreign currency. The distribution network of Rand Water includes more than 3,056 km of large diameter pipeline, which feeds into 58 strategically-located service reservoirs. The

large base of customers of Rand Water consists of metropolitan municipalities, local municipalities, mines and industries and IT suppliers - on average, 3,653mn litres of water are delivered to these customers daily. In terms of water quality, Rand Water meets the standards of the World Health Organisation (WHO), the South African National Standards (SANS 241:2005) issued by the South African Bureau of Standards, and the requirements of South African legislation. Rand water predominantly uses Split Case Pumps for their bulk water pumping requirements. Many of the installed pumping stations carry large size split casing pumps operating either in solo or in series for meeting higher head requirements. In earlier times, conventional use required pumps with a steam turbine-driven arrangement, which subsequently has been changed for direct motor driven arrangement. Meeting the market for major successes In 1994, South Africa opted for open capital market engagement, which saw the beginning of interaction between Rand Water and Kirloskar Brothers Limited (KBL), a global fluid management solutions provider and the largest manufacturer and exporter of centrifugal pumps and valves from India. Established in 1888 and incorporated in 1920, KBL is the flagship company of the US$2.1bn Kirloskar group. Its core businesses include large water infrastructure projects - and infrastructure work in many other sectors. Water resource management is a key business vertical in the KBL portfolio - whether providing pumpsets or executing full-scale engineering, procurement and construction (EPC) projects for water supply or water treatment. KBL continues to be the leading pump manufacturing company to participate in Rand Water’s tenders through

KBL continues to be the leading pump manufacturing company to participate in Rand Water’s tenders through local EPC contractors” local EPC contractors. Ongoing communications with RW, and participation in tenders floated, ultimately resulted in KBL’s first major success with RW for the Zwartkopjes Pumping Station, in Pretoria, in 2006 for the supply of pumping equipment’s through a local EPC contractor. The order for the supply from Kirloskar of large horizontal split case pumping equipment for the Zwartkopjes Pumping Station comprised of 10 X UPH 500-60 pumps coupled to 1475 KW, 4pole Motors and 5 X UPH 500 – 80 pumps coupled to 2700 KW, 4 Pole motors. The complete pumping scheme had 15 pump sets installed in five bays with three pumps operating in series for a total pumping capacity of 100 MLD at 350 metres. Supplies of these complete pump sets were completed in 2006 and 2007. Pumps have been commissioned in phases and have since then have been running seamlessly in feeding potable water to majority of the Gauteng Province. Prior to this major contract, KBL had also supplied 10-inch Split Casing Pumps for Rand Water’s Houtkop Pumping Station through Amalgamated Pumps & Engineering in 1995. The Zwartkopjes Pumping Station installation has been one of the major pumping project referrals for KBL from the Southern African region. 

African Review of Business and Technology - September 2013


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Agenda / East European support for local banks and businesses Investment by companies across East Africa will benefit from three lending programmes totaling EUR101.5mn (US$134.8mn) backed by the European Investment Bank (EIB). Three local banks - Chase Bank, the East African Development Bank and National Microfinance Bank PLC (NMB) - are using European Investment Bank funding to finance investment by small- and medium-sized enterprises (SMEs) to expand, modernise and start new operations. Kenyan SMEs will be able to access low-cost loans in Kenyan shillings, US dollars and Euros under an initiative backed by US$8.7mn from the European Investment Bank. This landmark agreement marks the first time that Chase Bank has partnered Europe's long-term lending institution. Companies across the East African Community in Kenya, Tanzania, Uganda and Rwanda will benefit from US$33.5mn provided to the East African Development Bank. The new EIBbacked lending programme is the first joint engagement to improve access to investment loans by small and medium sized companies since successful restructuring of the EADB and represents the start of a new era of cooperation between the European Investment Bank and the East African Community's financial institution. Through the third agreement with NMB a total of US$93.9mn will be made available for small and medium sized companies (US$67mn) and microfinance investment (US$26.8mn) under different criteria. This will be made available to companies across Tanzania through the NMB branch network. "Access by small- and medium-sized business to long-term finance is essential for creating new jobs and economic growth and today marks a new era of European Investment Bank engagement to support private sector investment by small and medium sized companies across East Africa. This will enable entrepreneurs and established firms to engage investment in new markets and can be expected to contribute to new jobs. Working with a range of well-respected financial partners in the region will increase the geographic scope and sector coverage of this initiative. We look forward to working with colleagues at Chase Bank, the East African Development Bank and NMB to improve access for low-cost investment finance for companies in East Africa and build on a strong track record of supporting entrepreneurs across the region," said Pim van Ballekom, European Investment Bank vice president.

Animal disease surveillance to support further trade Executive secretary of the Intergovernmental Authority on Development (IGAD) ambassador Mahboub Maalim and head of the EU Delegation to Djibouti Ambassador Joseph Silva signed a financing agreement recently for the improvement of the surveillance of animal diseases in support of trade in IGAD member states. Within the framework of the Regional Indicative Programme of the 10th European Funds for development and of the initiative Supporting the Horn of Africa's Resilience (SHARE), this agreement was endowed with six million euros and will be implemented by the Interafrican Bureau for Animal Resources of the African Union (AU-IBAR) in partnership with IGAD Centre for Pastoral and Livestock Development (ICPALD), under the overall supervision of IGAD. The project will contribute to strategic programmes, in terms of harmonisation of sanitary measures and the development of traceability and certification schemes.


African Review of Business and Technology - September 2013

Focus on Mwambani Economic Corridor


TAKEHOLDERS met recently in Arusha, Tanzania, to discuss a planned new deep sea port, railway transport and logistics corridor across the Democratic Republic of Congo (DRC), Uganda and Tanzania dubbed the ‘Mwambani Economic Corridor’. EAC deputy secretary general in charge of Planning and Infrastructure Dr Enos Bukuku acknowledged at the meeting that the Ports of Dar es Salaam and Mombasa were already experiencing significant capacity stress and would not be able to provide the requisite capacity support to the region in the near future. “The Port of Mwambani is thus a welcome additional capacity that will come in handy in bridging the capacity shortfall at the two major established ports in the EAC region,” he said. The existing ports in the region suffer haulage incapacitation due in particular to poor state of the connecting railways. To this end, Dr Bukuku noted that the railways’ poor performance has seen the cost of transport along the two main East African corridors (Central and Northern) skyrocket to some of the highest per tonne transport costs in the world, not to mention the costly destruction of the adjoining roads infrastructure by overloaded trucks. “The EAC heads of State have decided that all new railways development will be on standard gauge. It is, therefore, with high expectation that we look forward to the development of a brand new Mwambani Port connected to a high efficiency standard gauge railway network,” he commented. When implemented, the Mwambani Port and Railway Corridor will not only provide a land bridge from the Indian Ocean Port of Mwambani but will also open up vast land areas, improve connectivity and usher in new areas for development in agriculture and mining across its path.

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Agenda / South Fibre optic at the V&A Waterfront

Cape Town’s V&A Waterfront is set to gain comprehensive fibre optic infrastructure (Photo: Damien du Toit)

High speed Internet connectivity has become an important part of global business, and IT infrastructure is more and more becoming a strong focus for leading businesses. The V&A Waterfront in Cape Town, South Africa, have announced the roll-out of a fibre optic infrastructure across the property. Retailers, businesses and visitors all stand to benefit from the network by the end of 2014 with the first phase of the development already complete. The past 18 months has seen the V&A Waterfront up a gear in development with the company setting the benchmark in construction with innovative and sustainable building practises. But erecting intelligent buildings and revitalising the retail experience have not been the only progressive moves on the V&A Waterfront management’s agenda. The fibre optic project will see a single trench policy introduced across the property. The entire property will be trenched for a fibre optic backbone, which will be accessible to all their tenants and will enhance all IT and communication services. The Building Management System (BMS), CCTV and parking at the V&A Waterfront all currently run on the fibre optic infrastructure and a number of tenants are already making use of the network. The V&A Waterfront has partnered with Dimension Data who will

manage the network. Both new and existing tenants will have access to high-speed connectivity, to fixed wire, wireless and GSM network operators of their choice. Tenants have the choice to use different service providers for different services, thereby ensuring greater cost effectiveness. Users will benefit from minimal disruption and increased operational efficiency. As there will be two MeetMe rooms, the model caters for redundancy ensuring uptime on the network and therefore increased productivity. “With the new fibre optic infrastructure we aim to provide the most advanced high-speed broadband access in South Africa and market parity, adding further appeal to businesses considering the V&A Waterfront as a base for their operations,” said David Green, CEO V&A Waterfront. The fibre optic infrastructure development will circle the entire property and is being rolled out in three phases, with an anticipated sitewide roll out by the end of 2014. Phase one is complete and fully operational, with the new Allan Gray head office running on this network. “Not only will tenants benefit from the enhanced IT services, but visitors to the property will also benefit from a Wi-Fi cloud covering the entire Waterfront precinct.”

Growth to come for asset management industry


outh Africa’s asset management industry should brace itself for significant developments that will potentially shape the competitive landscape of the sector in the next five years, says Muitheri Wahome, head of technical solutions at specialist investment management company Investment Solutions. Wahome lists regulatory reforms, competition, and pressure to attract and retain talent, compliance costs as some of the challenges asset managers will face. Wahome also says market volatility and uncertainty, low real return environment, and slow economic growths are other humps to watch out for. She says it is therefore evident that even though South Africa now has one of the


world’s most developed asset management industry and with prospects for significant growth, the next four to five years will present challenges for the industry. “These are some of the dynamics that I think are going to shape the industry,” Wahome says. “The challenge is how to keep up with these developments while ensuring returns for investors and growing the industry,” she says. Wahome says the asset management industry has grown over the past 40 years, into one of the most developed in the global financial sector, with assets managed by SA investment managers growing from just over US$78.2bn in 2000 to more than US$290bn in

African Review of Business and Technology - September 2013

2011, according to an Alexander Forbes survey. “The industry has a long history of small investment boutiques breaking through and taking a significant share from industry heavyweights. Often Muitheri Wahome, head of technical solutions at from humble Investment Solutions beginnings, it took the businesses a long time to become established, but once they gained traction in the institutional market they showed rapid growth,” says Wahome.

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Energizing a more powerful and capable Panama Canal.

Follow the Charge The Panama Canal Expansion program is a tremendous undertaking. It entails powering up an extra lane with newly engineered locks to double traffic capacity. As well as managing and controlling power for wider, deeper canals to accommodate vast container ships out of Asia. It’s a singular feat of human engineering that inspired in us, at Eaton, equally innovative power management solutions.

A comprehensive, integrated power solution that goes beyond reliability. We’re there to support the Canal Authority for the entire project. From design to on-site start-up to commissioning support. The Panama Canal has spared over 900,000 ships a trip around the continent. With Eaton expertise, it will be well equipped to take on a million more. ©2013 Eaton. All rights reserved.


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Agenda / South Metallurgy specialists set to serve South African industry

Investing in African resources and mining

The SNC-Lavalin pyrometallurgy team in Johannesburg, South Africa, is currently involved in several niche projects for both local and international clients for whom it is custom designing equipment and systems for specific customer applications. “SNC-Lavalin is a world class company that is recognised for providing sound engineering and project delivery solutions to clients in many industries,” Ted Fulton, a A semi-closed ferrosilicon chrome AC furnace recently installed in pyrometallurgy specialist with SNCTurkey by SNC-Lavalin Lavalin’s Johannesburg office, says. “Based on our customers’ preferences, our team can specify, select and purchase the optimum equipment, or prepare and offer a complete technology supply package or packaged plant. In addition, the level of technical support our pyrometallurgical experts are able to provide on our projects significantly enhances the quality of the process and technology designs delivered to customers.” Currently, the company is poised to A low carbon DC furnace recently installed in Turkey by SNC-Lavalin complete a project for a ferrochrome producer in Turkey to increase the capacity of its existing low-carbon ferrochrome plant from 12,000 tpa to 32,000 tpa. Optimising the customer’s existing smelter has entailed the conversion of an existing closed 15 MVA calcium carbide furnace to a semi-closed furnace to smelt ferrosilicon chrome and the supply of a new 8 MW DC furnace to smelt low carbon ferrochrome via silico-thermic reduction. Other current projects include design and supply of new copper roofing for a pig iron and titanium dioxide slag plant in Norway, and a pre-feasibility study for a 5000 tpa magnesium plant to be constructed in the Western Cape, South Africa. “The pooled knowledge and experience of our pyrometallurgy team has put us on the map. We have the process expertise and equipment capabilities to deliver cutting edge solutions,” Fulton adds. “We’re now accelerating our search for new projects, while at the same time providing support to the greater SNC-Lavalin organisation on other pyrometallurgical projects.” SNC-Lavalin’s South African pyrometallurgy team comprises about 18 specialists, engineers and designers with full 3D-design capability specialising in custom designed pyrometallurgical plants and equipment. In-house competencies include CFD (computational fluid dynamic) to solve flow and heat transfer problems and FEA (finite element analysis) to determine the structural integrity of equipment and evaluate thermal performance. Both these modelling systems are used for equipment design and also offered as a service to clients on other engineering applications.



African Review of Business and Technology - September 2013

outh Africa needs to win back investors in the mining sector, which has resulted in top executives committing to engage at the Joburg Indaba, taking place in South Africa during October 2013. The inaugural 2013 Joburg Indaba on ‘Investing in Resourcing and Mining in Africa’ has attracted top minds to debate serious issues to ensure that South Africa’s and Africa’s Mining Inc. can be put back on track and become more productive and competitive. Robert Friedland, chairperson Ivanhoe Capital Corporation and executive chairman of Ivanplats, joins game changers including Bernard Swanepoel, Valli Moosa, Fiona PerrottHumphrey, Martyn Davies, Michael Spicer and other high profile CEOs to drive the investor interest back into this country. “I am encouraged by these industry leaders, investors and custodians of our industry joining together to map the way forward to unlock the immense value in our mining and resource sectors,” states Paula Munsie, CEO Resources for Africa and co-founder of the event. “The Joburg Indaba is quite different from the run of the mill conference format, and will allow direct access to investors and insights from leading figures engaging in some extremely stimulating discussions.” For those wanting to meet the game changers and thought leaders of the investment world and mining industry, the 2013 Joburg Indaba promises to draw together those with a vested interest in Africa’s mining and resource sectors. Joburg Indaba takes place from 29-31 October 2013. Further information is available at

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

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

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

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Agenda / West Increasing access to insurance IFC is investing US$6mn in Activa - an insurance group operating in Cameroon, Ghana, and other countries in West and Central Africa - to help increase access to insurance for farmers, smaller businesses, and lower-income individuals. IFC’s equity investment will help Activa expand into new markets, where few are able to access or afford insurance products because of weak distribution channels, high transactions costs, lack of product innovation, and low consumer financial literacy. Yolande Duhem, IFC director for West and Central Africa, said, “A key focus of IFC’s financial services strategy for sub-Saharan Africa is to support regional insurers who aim to achieve mass market coverage and expand their operations in other countries. Insurance is an essential social safety net in case of an accident or any other adverse event affecting households or businesses.” Richard Lowé, CEO of Activa Group said, “Through our partnership with IFC, we are extremely well positioned to take advantage of the many growth opportunities in the African markets with very low insurance penetration through the development of products designed to cover low-income population and small businesses and the use of innovative distribution channels.”

Iron test work indicates potential Sable Mining has released positive results from metallurgical test work at the company’s 123.5 sq km Nimba iron ore project in south-east Guinea - highlighting the commercial value of the site - which is the second largest on- or nearrail undeveloped direct shipping iron ore (DSO) deposit in West Africa. Sable Mining CEO Andrew Groves said, “These highly positive metallurgical testwork results further support our belief that Nimba has the potential to be a world class asset. With anticipated low capital expenditure because of existing nearby rail, and low operating expenditure because of the DSO grades, Nimba continues to set itself apart from its West African iron ore peers.

“Having already demonstrated significant DSO tonnage and a maiden JORC resource of 121.5Mt at an in-situ grade of 57.8 per cent iron, these latest results further underline the Project’s commercial viability. The metallurgical test work has highlighted that the iron mineralisation is amenable to relatively low cost production as the deposit contains easily fragmented rock, allowing for high crushing rates at low power consumption, and can be separated from gangue elements using a simple gravity circuit to further upgrade the ore. I am therefore confident that Nimba has strong potential to become a high tonnage, high grade and low cost production asset in the near term.”

Single currency zone reviewed Regional experts have ended a two-day meeting in Accra for the review of the revised roadmap for the ECOWAS single currency, which involves the creation of a second currency by six Member States of the second monetary zone by 2015. The Gambia, Ghana, Guinea, Liberia, Nigeria and Sierra Leone constitute the six countries of the zone that agreed to create a second currency, Eco, to be used during a transition period along with the CFA franc prior to the creation of a single currency by 2020. The meeting of the inter-institutional technical subcommittee on the roadmap for the ECOWAS single currency programme is intended to review the 34 activities included in the programme for the single currency. "The meeting is to review the roadmap and examine the status of implementation of these activities vis-à-vis the timelines indicated for their implementation," acting director of the ECOWAS multilateral surveillance directorate Dr Nelson Magbagbeola said.


African Review of Business and Technology - September 2013

An agricultural hub


GDP growth of more than seven per cent, political stability, transparency and eco-friendliness make Ghana a favourite of the international donors' community and an important hub for West Africa. Agriculture and food processing industry attract more and more private and public investment. Against this backdrop the trade fair specialist fairtrade Messe launch agrofood West Africa. The 1st International Trade Show on Agriculture & Livestock, Food, Beverage & Packaging Technology and Food, Beverages & Hospitality is scheduled to be held from 3 to 5 December 2013 at the Accra International Conference Centre in Accra, Ghana. Among the ECOWAS-The Economic Community of West African States as a regional group of 15 West African countries, Ghana has developed into a ‘donor darling’ of the international giver community. This success is founded on political and economic stability. Further Ghana belongs to the out-performers in sub-Saharan Africa, with GDP growth rates of considerably more than seven per cent (ECOWAS average: five per cent). This growth is driven by divert industry sectors. Private investments into the branches oil and gas, mining, agriculture, food processing industry, retailing and energy as well as public investment into infrastructural projects made Ghana an important hub for foreign companies for West Africa. “I am convinced: in 10 years from now we will witness the great Africa boom. By then, for us working in the field of packaging technology, business-wise the continent will play a similarly important role as Asia does today,” claims Friedbert Klefenz, president of Bosch Packaging Technology and chairman of the board of the packaging machinery sector within VDMA.

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Agenda / West Enhancing electricity supply in Côte d’Ivoire


he African Development Bank (AfDB) is facilitating a senior loan of up to US$66.9 to finance Côte d’Ivoire’s CIPREL Power Expansion Project, to increase existing plant capacity by 222MW and thereby help Côte d’Ivoire to meet its growing energy needs through the provision of reliable and affordable electricity supply while also reducing the environmental footprint associated with electricity generation. Electricity demand in Côte d’Ivoire has dramatically increased with an average rate of six per cent per annum from 2003 to 2012 while net electricity production has grown at only two per cent per annum during the same timeframe. Energy demand is

expected to remain high in Côte d’Ivoire over the medium- to long-term, and the energy shortage is expected to widen if generation capacity is not adequately expanded. While the country’s economy is still in the recovery stage, following the recent crisis, the provision of financing to boost affordable power is crucial. The AfDB played a key role in reaching financial closure on the CIPREL Power Expansion Project through the provision of long tenor financing, which is hardly available on the market. Thanks to the AfDB’s support, the existing power plant will be expanded to include an additional 111MW gas turbine, as well as a combined

cycle turbine for an additional 111MW of generation through the installation of a steam turbine and two heat recovery boilers connected to a previously built gas turbine (commissioned in 2009). The AfDB and other lenders were also instrumental in convincing the sponsors to use more rigorous and upto-date environmental and social management standards including the dry low-NOx green technology to reduce the NOx emissions. This fourth expansion will increase the gross plant capacity by 69 per cent to a total of 543 MW. When the project becomes operational, CIPREL will have the largest thermal plant in operation in subSaharan Africa.

Banking firm Nigerian Government attracts builds in Nigeria private investment in power sector Genesis Analytics is expanding its capacity in Nigeria, with the appointment of Ada PhilUgochukwu, who has a far-reaching business development mandate, as the company’s country director. Phil-Ugochukwu will focus on expanding and consolidating the firm’s presence in Africa’s second-largest economy by deepening relationships with existing Genesis Analytics clients and expanding its presence into non-banking financial services. She will also focus on enabling clients to benefit from leveraging off the firm’s sector and continental knowledge in order to improve business performance.

Ada Phil-Ugochukwu, Genesis Analytics’ country manager for Nigeria


International investors have responded with enthusiasm to the Nigerian Government’s attempts to attract private investment into its power industry with 110 bidders submitting Expressions of Interest to acquire majority shareholdings in the National Integrated Power Project (NIPP) ten new thermal power plants. The combined sales could generate several billions of US dollars and would represent one of its most successful private investment projects. The sale process is being handled by the Niger Delta Power Holdings Company (NDPHC), a special purpose company set up by the Government in 2005 to implement its National Integrated Power Project (NIPP) and the Bureau of Public Enterprises. The NIPP represents the Nigerian Government’s flagship project that is mandated to add new generation, transmission and distribution capacity to Nigeria’s electricity supply industry and resolve its chronic shortfall in supply. Anthony Muoneke, executive director, (finance and administration) at the NDPHC and chairman of the Joint Working Group, superintending the share sale transaction, said, “This is a tremendous vote of confidence by the international investment community for the Federal Government of Nigeria’s declared policy to increase private sector involvement in the electricity industry. The NDPHC is overseeing the sale of these ten power generation assets in collaboration with the Bureau of Public Enterprises (BPE). Each of the ten power plants is currently owned by a wholly owned subsidiary of NDPHC and 80 per cent of the outstanding shares of these subsidiaries is offered for sale. Five of the plants are either fully or partially operating today with the remainder due to be operational latest mid-2014. Once operational, the ten power plants will generate more than 5,000MW. Each generation company will benefit from a contract structure covering the sale of electricity, the supply and transportation of natural gas, and access to the electricity transmission network. The sale process has included staging events in New York, Lagos, Hong Kong and London during June. Each roadshow attracted more than 400 attendees including representatives from the international investment community and their advisors.

African Review of Business and Technology - September 2013

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Events / 2013 October 2-4


North Africa Oil & Gas Summit Tunis, Tunisia

Contact West Africa


Accra, Ghana

Southern Africa ICT Summit


Maputo, Mozambique

Power Nigeria


Lagos, Nigeria

Demo Africa


Nairobi, Kenya

East Africa Oil & Gas Summit


London, UK



Addis Ababa, Ethiopia

Africa Electricity


Johannesburg, South Africa



Nairobi, Kenya

Viridis Africa


Johannesburg, South Africa

East Africa ICT Summit


Nairobi, Kenya

Medic West Africa


Lagos, Nigeria

African Economic Conference


Johannesburg, South Africa



Düsseldorf, Germany

Ghana Summit


Accra, Ghana

Africa Oil & Gas, Finance & Investment Forum


Dubai, UAE

Johannesburg, South Africa

Joburg Indaba

The vice-governor of Luanda meets Himoinsa


ow in its 30th year, the multisectoral International Fair of Luanda (FILDA) welcomed 50,000 people from 35 countries in Africa, America, Europe and Asia, and hosted 700 exhibitors - including Himoinsa, a multinational, manufacturer of generators and lighting towers. The company was represented by Himoinsa Angola MD David García, MD of Himoinsa Angola, commercial director Osvaldo de Brito, and director of sales & marketing Guillermo Elum. “The main objective of our participation in FILDA was, in particular, to reinforce our presence in the Angolan market, promote brand recognition on the African continent and establish new business contacts,” de Brito explained. During the fair, Himoinsa welcomed to its stand the vice-governor of the province of Luanda for political and economic matters, Adriano Mendes de Carvalho, who chatted with the management team of Himoinsa Angola. Himoinsa has supported many Angolan projects since the 1990s. Mendes de Carvalho has been working with the company for several months, together with other members of the Ministry of Energy and Water Resources of Angola (MINEA) on the design, creation and launch of a 25MW energy plant in Luanda, which will supply energy to the national grid and supplying Zango IV and the Cassaque pumping station on the River Kwanza.

Key event on West African infrastructure Water Africa And West Africa Building & Construction Exhibition is scheduled to take place in Abuja, Nigeria, from 25-27 November 2013. This is a key event for industry stakeholders seeking to showcase equipment in the water and construction sectors to contractors, consultants, engineers, architects and government officials. As this issue goes to


press, the organisers have alerady confirmed attendance of more than 100 exhibitors from around the globe. West Africa Building & Construction aims to help those providing civil engineering and housing projects in West Africa to see new materials and machinery for use in construction and talk to experts on how best

African Review of Business and Technology - September 2013

to use them. Water Africa offers an opportunity for companies to put their products and services before purchasers from central and local government, industry, agriculture, NGOs and other key players from the entire West African region.

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Bulletin / Investment Report projects healthy economic outlook for Africa Africa's economic outlook for 2013 and 2014

with Murray Roberts taking the decision to

African private equity funds top 11 per cent annual return for 10-year period

has been described as promising according to

sell the units in an effort to reduce its debts.

African private equity performed in line with

businesses were sold to a consortium consisting of Capitalworks and RMB Ventures,

or ahead of Asian and Latin American private

a new report, which projected that the cent in 2013 and 5.3 per cent in 2014; the

IDA funds for Burkina Faso power sector win approval

African Economic Outlook 2013, which is

A US$50mn International Development

institutional-quality private equity funds in

produced annually by the African

Association (IDA) credit to support Burkina

Africa, which posted an 11.2 per cent

Development Bank, the OECD Development

Faso's efforts to improve its electricity

annualised return for the 10 years ending

Centre, the Economic Commission for Africa

supply and spread the use of renewable

September 30, 2012; the total fund

and the UN Development Programme,

energy sources in rural areas has been

capitalisation came to US$7.3bn from 40

asserted that countries across the continent

approved by the World Bank; Burkina Faso

institutional-quality private equity and

should tap into the wealth of their natural

World Bank country director Mercy Miyang

venture capital funds based in Africa for the

resource in order to accelerate growth.

Tembon said that Burkina Faso had made

vintage years covered from 1995 to 2012.

continent’s economy would grow by 4.8 per

equity during the 10-year periods ending in 2010 and 2008, according to a new index of

"steady strides" in developing its electricity

Dangote promises further investment in Nigeria

capacity and connecting people in its cities and rural areas to power.

Africa’s richest man Aliko Dangote has said he is committed to continued investment and job creation in Nigeria; speaking to a business group last month, the president and CEO of Dangote Group described his recent ventures into the petrochemical and agricultural subsectors as his personal contribution towards reducing unemployment in West Africa's largest economy.

The IDA's US$50mn credit will be used to increase electricity connectivity across Burkina Faso (Photo: Christian K/

Aliko Dangote has started to invest in Nigeria's petrochemical and agricultural sub-sectors (Photo: World Economic Forum)

Murray Roberts sells manufacturing unit

World Bank to increase Nigerian investments in 2014

African private equity performed in line with or ahead of Asian and Latin American private equity during the 10year periods ending in 2010 and 2008 (Photo: Andres de Wet)

Copperbelt Energy to raise funds for African expansion Copperbelt Energy, which supplies power to

The International Finance Corporation (IFC),

Glencore Xstrata and Vedanta Resources in

the World Bank's private-lending arm, has

Zambia, has revealed plans to raise

said it will invest up to two billion in Nigeria in

US$150mn through loans to expand business

2014 representing a 25 per cent increase in its

in Africa and finance existing debt;

investment in the country; IFC country

Copperbelt Energy corporate development

South African engineering and construction

manager Solomon Adegbie-Quaynor said the

managing director Michael Tarney said that

service provider Murray Roberts has

funds, which will target industries in which

loans of as much as US$100mn from German

announced the sale of its African construction

Nigeria is internationally competitive, would

and Dutch development-finance institutions

products platform comprising the group’s

be raised directly by the IFC or from other

would be completed within a three-month

manufacturing businesses for US$130.1mn;

international funding agencies.

time frame and will have 10-year maturities.

the Ocon Brick, Technicrete and Rocla


African Review of Business and Technology - September 2013

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African Review/On the Web

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

Swaziland’s rail advances mirror southern Africa’s rail growth

Angola to act on impact of diamond exploration

The future of rail transport in southern Africa hinges on advances in countries such as Swaziland that ensure the region’s rail systems all work in harmony. Never has the development of a transportation industry been so firmly dependant on correcting past practices. During the 19th and 20th centuries, when African nations’ rail systems were linked to the rail technology of the respective colonial power that administered their territories, rail systems developed independently.

Angola’s environment minister, Fátima Jardim, and geology and mining minister, Francisco Queirós, have met to discuss the environmental impact of diamond exploration in the Diamond miners in Integral Deposit of Luando in Angola's Luando Deposit have been northern Malanje province. reminded to adhere to the country's Analysing a Presidential Mining Code and Memorandum on the Environmental Law subject, Jardim said that the (Photo: CazGDesign/ authorisation of diamond exploration in the region will now only be granted with the permanent monitoring of a team coordinated by the environment department.

Swaziland’s rail system is undergoing its most crucial line expansion in three decades (Photo: Steve Ventress/Flickr)

Kenya and Tanzania to cooperate in geothermal power production Kenya has revealed plans to partner with Tanzania for the production of geothermal power in an attempt to increase energy production in the East African region. A delegation of senior government officials and members of Tanzania’s parliamentary committee on energy and mining recently discussed geothermal energy developments in Kenya with the aim of understanding capacity building, licensing and how to attract investors for the partnership.


African Review of Business and Technology - September 2013

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ID Cards

New identities for ‘cashless’ Nigerians With 100mn cards to be handed out, Nigeria's identity card programme is the largest of its kind in Africa


he Nigerian National Identity Management Commission (NIMC) and MasterCard are conducting a roll-out of 13mn MasterCard-branded National Identity Smart Cards with electronic payment capability as a pilot programme. The National Identity Smart Card is the card scheme under the recently introduced National Identity Management System (NIMS). This programme is the largest roll-out of a formal electronic payment solution in the country and the broadest financial inclusion initiative of its kind on the African continent. Impact technology In the programme's first phase, Nigerians 16 years and older, and all residents in the country for more than two years, will get the new multipurpose identity card which has 13 applications. These include MasterCard’s prepaid payment technology that will provide cardholders with the safety, convenience and reliability of electronic payments. It is hoped that this will have a significant and positive impact on the lives of these Nigerians who have not previously had access to financial services. The project will have Access Bank Plc as the pilot issuer bank for the cards and Unified Payment Services Limited (Unified Payments) as the payment processor. Other issuing banks will include United Bank for Africa, Union Bank, Zenith, Skye Bank, Unity Bank, Stanbic, and First Bank. Dr Ngozi Okonjo-Iweala, minister of

The enrolment process for the NISC involves the recording of an individual’s demographic and biometric data


finance and coordinating minister for the economy in Nigeria, stressed the importance of the National Identity Smart Card Scheme in moving Nigeria to an electronic platform. "This programme is good practice for us to bring all the citizens on a common platform for interacting with the various government agencies and for transacting electronically," she said. "We will implement this initiative in a collaborative manner between the public and private sectors, to achieve its full potential of inclusive citizenship and more effective governance." The new National Identity Smart Card will incorporate the unique National Identification Numbers (NIN) of duly registered persons in the country. The enrolment process involves the recording of an individual’s demographic data and biometric data (the capture of 10 fingerprints, facial picture and digital signature) that are used to authenticate the cardholder and eliminate fraud and embezzlement. The resultant National Identity Database will provide the platform for several other value propositions of the NIMC including identity authentication and verification. Individual identification schemes Other identification card schemes like the driver’s licence, voter registration, health insurance, tax, SIM and the National Pension Commission (PENCOM) can all be integrated into the multi-function card scheme of the NIMS using the NIN. When fully utilising the card as a prepaid payment tool, the cardholder

African Review of Business and Technology - September 2013

can deposit funds on the card, receive social benefits, pay for goods and services and withdraw cash from all ATMs that accept MasterCard. Card security will be ensured by the EMV Chip and Pin standard. Upon completion of the National ID registration process, NIMC aims to introduce more than 100mn cards to Nigeria’s 167mn citizens. ■

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A pan-African agenda for Nigerian enterprise Dangote’s leadership is confident about growth prospects going forward, in Nigeria and across sub-Saharan Africa


liko Dangote, president and CEO of Dangote Group, recently highlighted the prospects and opportunities associated with business matters in subSaharan Africa - and, particular, the rewards from engagement by Nigerian enterprises across the continent. Dangote’s own business strategy has paid off. The year 2012 was particularly good for the group, in terms of its excellent performance commercially and fiscally. During 2012 Dangote launched a number of projects, including a fertiliser plant and an oil refinery. These are big ticket projects. Dangote is also looking at establishing more cement plants and expanding its sugar business in line with the new federal government backward integration policy. Its business strategy has been to look at the country’s imports and invest in critical areas of need. By so doing, Dangote has helped to make Nigeria self-sufficient in some commodities such as cement, and also a net exporter of these products, specifically within the Economic Community Of West African States (ECOWAS). Investing in growth There are many investment opportunities in Nigeria, and many more across Africa for Nigerians. Discerning investors know this and are actively looking for their own slice of the market. The only thing keeping others back is the issue of the negative perception that some people have about the continent - but things are changing fast. With increasingly positive perception, Africa has become one of the fastest growing regions in the world. Consider, too, that the return on investment in Africa is one of the highest in the world. So, the potential for growth is there. There is a clear need to transform this potential into reality. In addition, one has to be innovative in this market. If you bring a textbook solution and try to apply it here, it won’t work.


Aliko Dangote is President and CEO of Dangote Group, one of the most diversified business conglomerates in Africa.

Many will affirm that the best market today is sub-Saharan Africa and Aliko Dangote shared with African Review his view that there is no country where you can make money like Nigeria. “The opportunities here are so tremendous,” he said. Balancing growth trajectories with profitability A key concern for Dangote is the need to maintain a balanced corporate structure, which is consistently geared towards viable, sustainable growth. Diversification is key. He said, “We are currently diversifying our business. Some businesses will have greater or lesser profitability depending on the industry. In petrochemicals or refinery, for instance, the refining margin is low, perhaps

African Review of Business and Technology - September 2013

no more than 10 to 12 per cent, but what we are doing is not just refining, we are also extracting a lot of high-value items out of the import pool. That requires a huge investment. “For example, today, I don’t control all of the costs in my sugar business because I don’t grow my own sugar. I only add value. If the cost of raw sugar goes up too high, I can’t make much money but if it falls, I can make more money,“ Dangote said. “By producing sugar, you end up with excess capacity. When you crush the by-product, you end up with a shell which can power high-pressure boilers to produce power, which you can pass through the national grid. You produce ethanol which you can mix with diesel for fuel and other by-products can be used for animal feed. So there is no waste and it is about value distribution and putting things back into the economy, including employment. “ The biggest issue, according to Dangote, is the lack of infrastructure - but he is positive about the future. He believes that the continent’s politicians are geared increasingly towards policies that enable the delivery of infrastructure specifically built to facilitate investment and accommodate business. Technology is also a critical component of growth. Dangote said, “Technology is key to business. Without the right technology, there is no way that you can grow your business beyond a certain level. We have state-of-theart technology in our plants. This has made us more efficient.” ■

The group’s activities encompass cement manufacturing, sugar and salt refining, flour and semolina milling, pasta, noodles manufacturing, poly products manufacturing, port management and haulage logistics, real estate and the Dangote Foundation.

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Diversification to ensure Botswana’s stability Botswana’s economy has weathered many of the most severe effects of the global economic storm, but the country’s future prosperity could hinge on how well it can maintain its programme of economic diversification


otswana’s traditionally buoyant economy, fuelled by the country’s impressive natural resources, was assessed and profiled by a recent International Monetary Fund (IMF) mission. The IMF team, led by the organisation’s mission chief for Botswana and Namibia, Lamin Leigh, visited Gaborone from June and July 2013. The team conducted discussions to review recent economic developments as well as prospects and policies to ensure Botswana’s continued macroeconomic stability and growth. The mission met with the minister of finance and development planning, O.K. Matambo, Bank of Botswana governor, Linah K. Mohohlo, permanent secretary for Ministry of Finance and Development Planning, Solomon Sekwakwa, and senior government officials, development partners, and representatives from the private and public sectors. Leigh outlined the IMF mission's preliminary conclusions in a statement, saying that following two years of strong growth following the global economic crisis, the growth of real GDP had fallen to just four per cent in 2012. This slowdown in growth was driven by the reduced global demand for diamonds, which continued into the first quarter of 2013, said Leigh. Botswana’s level of inflation had, by the end of May 2013, reduced to 6.1 per cent from a level of more than nine per cent in December 2011, bordering the Bank of Bostwana’s target range of three to six per cent. The overall outlook for the country’s economy remains positive. Prudent management “Botswana’s fiscal and external positions remain strong thanks in large part to the government’s prudent macroeconomic management,” said Leigh, adding that the budget for the 2012/13 fiscal year was balanced for the first time since the financial crisis of 2008/09. Real GDP growth for the remainder of 2013 is expected to remain stable at four per cent while headline


cent of the total country programme budget. The programme supports activities built around five strategic areas: ● Economic diversification and poverty reduction ● Governance and the promotion of human rights ● Health and HIV/ AIDS ● Environment and climate change ● Children, youth and women empowerment

Jwaneng Diamond Mine: Renowned for its diamond production, Botswana’s government has taken various steps to diversify the country’s economy

inflation is expected to drop further in the first quarter of 2014. Leigh’s statement also praised the government’s efforts to simplify the tax system and credited Botswana’s banking system for being “profitable and well-capitalised with relatively low non-performing loans and adequate buffers to smooth shocks”. The government was also commended for its focus on greater private sector development and economic diversification, as put forward in the recent review of its 10th National Development Plan (NDP10). Indeed, Botswana’s efforts to diversify its economy look set to pay off, according to the IMF, with non-mining growth expected to offset the continuing slump in mining production. The UN continues to assist Botswana in the areas of capacity building and the provision of advisory services. Botswana's government cofunds UN activities and accounts for 60 per

African Review of Business and Technology - September 2013

The UN and the government of Botswana recently announced a revised version of their Programme Operational Plan (GoB-UN POP) to bring the plan’s core aims in line with NDP10 and the country’s national framework for the future, Vision 2016, to help make its Millennium Development Goals (MDGs) a reality. The revised plan was signed during a ceremony by both the government of Botswana and fifteen agencies of the UN. Joint targets The government and the UN use joint annual plans to set themselves targets to achieve intended goals. The five implementing ministries are the Office of the President, the Ministry of Finance and Development Planning, the Ministry of Health, the Ministry Of Wildlife and Tourism and the Ministry Of Local Government. The current, overall analysis of the progress towards achieving the MDGs is positive and the government and people of Botswana have pulled together to harness the country’s resources. The UN has however highlighted that major steps need to be taken immediately to ensure that HIV/AIDS does not wipe out many of the development efforts and achievements since the country’s independence in 1966. “Going by current trends achieving all the MDGs, or ensuring that progress in vital areas is not eroded will prove a very serious challenge to Botswana,” the UN said in a statement. ■

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The best bond buys With increased access to the world’s capital markets, African countries are eager to raise private capital in order to complement foreign currency needs and reduce their over-reliance on official development assistance


asy global financial conditions – low interest rates in advanced economies and low global risk aversion leading to portfolio reallocation in search of risk-adjusted yields and diversification opportunities – are facilitating access of subSaharan African countries to international capital markets,” explained the International Monetary Fund (IMF). Outside South Africa, between 2006 and the first-half of 2013, twelve countries have issued foreign-currency bonds. They include resource-intensive and more diversified economies, as well as countries from different income groups and debt levels. In total, a quarter of the 49 sub-Saharan African (SSA) countries have sold Eurobonds. They are Seychelles, Ghana, Gabon, Republic of Congo, Senegal, Côte d’Ivoire, Nigeria, Namibia, Zambia, Tanzania, and Rwanda (see table). Angola sold US$1bn of debt with a quasiEurobond structure in August 2012. The latest issue was from Nigeria, Africa’s largest frontier market, which on July 2nd raised US$1bn in two Eurobond papers - a US$500mn five-year bond at a yield of 5.37 per cent and a US$500mn 10-year bond with a yield of 6.62 per cent, shortly before Rwanda’s maiden (US$400mn) Eurobond. The Nigerian offering was four-times oversubscribed due to its strong fiscal position, structurally sound macro- economic fundamentals and low debt-to-

GDP ratios (below 20 per cent). While the Rwandan offering – led by Citibank and BNP Paribas, attracted 250 investors and closed with an order book worth more than US$3.5bn (half of Rwanda’s total GDP). Fitch Ratings believes the Rwandan bond will "enhance the country's external debt profile, support GDP growth and help attract investment". Positive sentiment In several cases, the African sovereigns are able to borrow either at par with or lower interest rates than some Eurozone countries, e.g. Slovenia or Greece and under favourable conditions, such as longer repayment periods. Although borrowing costs are historically low, SSA’s Eurobond yields are still attractive to induce foreign interest. “US dollar interest rates are at all-time lows and there’s plenty of liquidity around," said Florian Hartig of Standard Bank. "I doubt any

sub-Saharan Africa: Sovereign Bond Issuances Seychelles Ghana Gabon Rep. of Congo Senegal Seychelles Cote d'Ivoire Nigeria Senegal Namibia Zambia Tanzania Rwanda

Date Sep-06 Sep-07 Dec-07 Dec-07 Dec-09 Jan-10 Mar-10 Jan-11 May-11 Oct-11 Sep-12 Feb-13 May-13

Yield at issue 9.46 8.50 8.25 8.77 9.47 N/A 17.35 7.12 9.12 5.83 5.62 N/A 6.87

Maturity years 5.0 10.0 10.0 22.0 5.0 16.0 22.0 10.0 10.0 10.0 10.0 7.0 10.0

Spread(in bps) 470 387 426 458 691 N/A 393 372 583 336 384 600 N/A

Size $ mn. 200 750 1,000 480 200 168 2,330 500 500 500 750 600 400

Creadit Rating at issue B (S&P) B+ (S&P) BB- (S&P) Not rated B+ (S&P) B (Fitch) Not rated B+ (S&P) B+ (S&P) Baa3 (M) B+ (S&P) Not rated B- (S&P)

Currency US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar

Covering Laws England England USA Luxembourg England England France England Luxembourg England England England England

*Spread calculated as fixed spread above London Inter-bank offered rate (LIBOR). S&P= Standard & Poor's; M= Moody's Investors Service. N/A= Not available. Source: Dealogic and Bloomberg, LP.

African Review of Business and Technology - September 2013


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sovereign issuing today would look back in three years and have any reason to be upset." Given the limited supply of African sovereign debt denominated in hard-currencies, regional strong growth coupled with high demand should keep yields relatively low in the six to seven per cent range over the medium-term. Credit rating Additional economies could access global bond markets in the next one to two years. Among them are Kenya, Uganda, Mozambique and Cameroon as first-time issuers; and Ghana, Namibia, Nigeria, Senegal, South Africa, Angola and Zambia as repeat issuers. These countries have a credit rating, a condition favouring issuance, plus they have developed institutional capacity in the area of public debt management, including the setting up of a dedicated debt management office – with assistance from the multilateral institutions. In practice, SSA sovereign bond issuers have many elements in common. Excepting South Africa, all countries have denominated their sovereign bonds in US dollars. Most of the bonds are traded on the London Stock Exchange – the bulk of which can be sold to US investors without registering at the Securities and Exchange Commission because they are issued under 144A Rules and US Regulation S. Sizes and maturities have varied. The largest issues (excluding South Africa) have been associated with debt restructuring operations, e.g. Cote d’Ivoire. Most sovereign bonds have exceeded the minimum threshold of US$500mn, which is typically required for inclusions in JP Morgan's emerging market bond indices. Maturities have typically been about 10 years. Why issue bonds? Access to international markets brings opportunities to investors and sovereign borrowers. In effect, every African economy has a huge infrastructure deficit (notably in energy and transport sectors). Eurobond proceeds can be crucial to financing capital projects with high ‘economic multipliers’ that often require resources exceeding aid flows and domestic savings. According to Rwanda's Minister of Finance and Economic Planning, Claver Gatete, the Eurobond proceeds will be for priority projects such as US$150mn for the construction of Kigali Convention Centre and US$50mn to build a 28MW hydro-electric dam, while some US$80mn will refinance debt for national carrier, RwandaAir. Sovereign bond issuance can help reduce debt-servicing costs by substituting outstanding public external debt contracted at higher interest rates with sovereign bonds having lower coupon rates, longer maturities, and no amortisation for a significant time. For instance,

Sovereign bond issuance can help reduce debt-servicing costs Senegal issued a 10-year US$500mn Eurobond in the first half of 2011, replacing a five-year US$200mn bond issued in 2009; this allowed it to obtain a significant maturity extension. Ghana is also looking to refinance its 2007 US$750m note with another Eurobond. Global issuance provides a benchmark for pricing private corporate papers. Over time it expands the yield curve, and helps businesses and parastatals to access global capital markets. For example, following Zambia’s 2012 maiden Eurobond, the stateowned Zambian railway operator, Zambian Road Development Agency, and the municipal government of Lusaka are reportedly planning to raise additional funds via bond issuances. In Nigeria, Eurobond trading in the secondary market has been used as a reference for sub-national and corporate bond issues – i.e. providing information for assessing the yield spread at which a country’s foreign currency debt is currently being traded. Four countries (Seychelles, Gabon, the Republic of Congo and Cote d’Ivoire) specifically issued international bonds in the context of debt restructuring, including clearing arrears to multilateral and commercial creditors. In 2007, Gabon’s Eurobond proceeds were used to buy back at a discount of 15 per cent the country’s outstanding loans to Paris Club creditors. Promoting transparency Tapping fixed-income markets can strengthen the macro-financial discipline of respective issuers. It can also promote transparency and structural reforms because of increased scrutiny by strategic investors as well as debt ratings agencies – principally Standard and Poor’s, Moody’s and Fitch. Nigeria’s macroeconomic policies have continued to improve following its first presence in global markets during early 2011. Generally, issuers use credit ratings to communicate the relative credit quality of debt issues, thus expanding the universe of investors. They also help national authorities to anticipate the interest rate to be offered on their future debt offerings. Hence, the more creditworthy an issuer, the lower the interest rate paid on debt securities and vice versa. The success of prospective further issuances depends on continued investors’ appetite for frontier bonds, overall liquidity conditions and search for high yields. Whether the appetite for African bonds is sustainable over the long term is, however, debatable. ■ Moin Siddiqi, economist

Ratings Definitions


he major credit rating agencies express ‘considered opinions’ about the capability and willingness of an issuer to service its financial obligations in ‘full’ and ‘on time’. Typically, ratings are expressed as letter grades, which range from: ‘AAA’ – extremely strong ability to meet debt-servicing commitments; ‘BBB’ – adequate capacity to service debt, but more subject to adverse economic conditions (i.e. external shocks); ‘B’ – more exposed to adverse business conditions but currently possess the capacity of meeting financial obligations; ‘CCC’ – payments of debt commitments depend strictly on favourable external economic climate; ‘CC’ – currently highly vulnerable to debt default; and ‘D’ – the risk of outright payment default on financial obligations.


African Review of Business and Technology - September 2013

Factors Affecting Sovereign Risk Foreign currency-denominated debt as per cent of GDP; Short-term external debt per cent of gross foreign (official) reserves; Interest payments per cent of total exports; Import-coverage by forex reserves (months); Current account surplus or deficit per cent of GDP; Average real GDP growth and Average inflation (over a five-year period); and Central government balance (i.e. budget surplus or deficit) as per cent of GDP.


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Unlocking investment potential What South Africa's membership of the BRICS grouping means for the continent's commercial interests


outh Africa’s joining of the BRICS grouping has been touted by experts as a development that will benefit African countries in the Southern African Development Community (SADC). It has also been observed that African countries should, however, undertake domestic reforms to benefit from the treaty. BRICS members have emerged as centres of economic growth as demonstrated by global rankings. These member states contribute half of the world’s economic growth and trade with the rest of the world was US$5.6 trillion in 2012, 16 per cent of total global trade. It is a fact that the BRICS countries constitute the principal trading partners of Africa and the largest new investors with China leading the pack. BRICS-Africa trade is expected to grow to about US$530bn in 2015 from US$150bn in 2010 while BRICS foreign direct investment (FDI) into Africa is set to jump to about US$150bn in 2015 from US$60bn in 2009, according to Standard Bank, which trades in Zambia as Stanbic Bank. In 2012, BRICS-Africa trade was pegged at US$340bn. Interestingly, BRICS member countries trade more with Africa than they do amongst themselves. Trade among BRICS members was at US$310bn in 2012, up from US$28bn in 2002. With the above scenario, riding on the anticipated trade and investment partnerships between Africa and BRICS, it is imperative that the member states have the developing continent within their sights. As South African President Jacob Zuma has observed, the BRICSAfrica partnership should provide a solution to addressing infrastructure challenges that continue to dog the continent. "Sub-Saharan Africa achieved strong growth of more than five per cent in 2012 which will continue in 2013, notwithstanding the fairly weak, but improving growth prospects in the rest of the world," said Zuma in his address to the recent BRICS summit in Durban, South Africa. "African countries are fully committed to maintaining the momentum on reforms, to induce higher growth supportive of poverty reduction. We must, therefore, work together to support the unyielding efforts of our people to strive towards a better life, including and especially in sub-Saharan Africa [which is] so rich in, albeit complex, opportunities." The summit saw leaders express their support for infrastructure development in Africa and its industrialisation and also saw discussions surrounding the development of the BRICS Development Bank. A multilateral agreement on infrastructure cofinancing for Africa will have a direct impact not only on the member states but Africa and other developing countries is, as will agreements on the green economy, skills development,


African Review of Business and Technology - September 2013

South African President, Jacob Zuma, has stressed the importance of utilising South Africa's BRICS membership to benefit all African countries

manufacturing and industrialisation. The bank aims to address the infrastructure needs of member states and other countries. It is tailored to complement the existing efforts of multilateral and regional financial institutions for global growth and development. The BRICS group of countries has also agreed to establish a US$100bn Contingent Reserve Arrangement, which will cushion any economic problems within the members' markets. Some stakeholders see the ascension of South Africa to the chair of the group as an integral component of enhanced cooperation between the BRICS members and Africa. Spearheading the BRICS-Africa agenda is critical, taking into consideration the continued growth in trade between BRICS member states and Africa, according to regional think-tank the Southern African Institute of International Affairs (SAIIA). "The BRICS is also an important source of foreign direct investment for Africa, investing in infrastructure development, the agricultural sector and in the case of China, in industrial zones designed to help integrate Africa in global value chains," SAIIA senior researcher for economics and diplomacy, Memory Dube said. African countries should seize this rare trade opportunity and tap into the benefits of South Africa being a member of this promising ‘club’ that can fundamentally change the configuration of the continent’s business prospects. ■ Nawa Mutumweno

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Building Tomorrow’s Enterprise

African banking at the cusp of transformation Infosys’ Finacle helps drive innovations and quicker growth among top African banks


he banking sector and its dynamics can often be a reflection of the larger growth story of a country. Going by this dictum, Africa’s robust banking industry sure tells a story of tremendous growth for a continent that has seen a chequered history. Over the last few years, Africa’s banking sector has made great strides by riding on the many economic and technological developments, which have also made a vast impact the world over. Advanced financial services systems such as Infosys Finacle have played a definitive role in modernising and strengthening the African banking system. The industry is now past the pervasive liquidity and solvency crises of the 1970s and 80s in countries such as Benin, Cameroon and Madagascar, which had left a deep dent on commercial banks and their supervisory bodies. Today’s statistics are indeed encouraging. In 2012, the total assets of 200 largest banks in Africa stood at approximately US$1,110 billion, with a Net Banking Income (NBI) of US$45 billion. From the rudimentary banking practices of the 1970s, to the 1990s traditional physical banking, to reaching today’s advanced technology-based practices, African banking sector’s is a saga of revolutionary transformation. Enhanced banking practices and structural changes have powered the modernisation of Africa’s banking industry. Existing banking institutions are posting good results, and are improving their operating and performance indicators, as they are more resilient, and also adhere to higher professional standards. But above all, technology such as Infosys Finacle has played a dominating role in transforming the banking landscape in Africa. As a growth market and one of Finacle’s first entry market, Africa is a strategic priority for the product and business unit. “Finacle has been empowering African banks to maximise their opportunities for growth,


while reducing the risks associated with largescale business growth and transformation,” says Venkatramana Gosavi, Regional Head, Growth Markets, Infosys. Finacle serves about 168 clients in 81 countries and has a growing influence in the global banking world. Key Growth Accelerators Several critical factors are influencing the growth trajectory of Africa’s banking institutions. A few of the key indicators include: ●

Financial sector reforms: These have strengthened Africa’s financial governance and regulation, enhanced the payment infrastructure as well as increased financial access.

Payments reform: They have contributed to enhanced revenue and growth opportunities in transaction services.

Increasing trade and open economies: African countries with strong resource and commodities institutions have been able to drive economic development. Increasing FDI and investment in infrastructure are also generating massive financing opportunities.

Technology: This serves as one of the most powerful criteria driving much of the changes and enhancements in the banking space. From cards and point of sale, to mobile phones, the latest technology has facilitated increased access, extended reach and reduced costs.

Infosys Finacle is the solution of choice for African banks because it understands the pressing needs of banks in these markets, including core banking revamp, daily reconciliations, improving efficiency by avoiding manual efforts, and reaching a largely rural population.

African Review of Business and Technology - September 2013

Mr. Venkatramana Gosavi Regional Head, Growth Markets, Finacle

“Finacle also offers the right solution suite to map to business challenges such as core banking, and treasury and mobile banking,” emphasises Gosavi. The Infosys Finacle team gathers a strong business understanding of the bank’s needs, and proposes solutions benchmarked against industry frameworks and standards. The team executes projects with commitment to target dates and with complete control over business risks. The company has also been positioned as a leader in the Gartner Magic Quadrant 2012 for International Core Banking 2012. Strengthen and sustain success by leveraging the latest technology Even as they retain their distinct and unique character, African banks are taking the right steps to grow and increase their bottom lines, primarily through the right technology tools and techniques. International banks operating in Africa have a centralised business structure, with greater focus on trade finance, corporate and consumer banking. They function based on a hub-and-spoke structure, where the hub is based in the head office. However, African banks mostly target small and medium enterprises (SMEs) and retail, and strive to build loyalty among their customers.

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Finacle Building Tomorrow’s Enterprise

They also enjoy a decentralised decisionmaking process. Their lending decisions are also influenced by the relationship the client enjoys with the bank. In the new scenario, foreign bank subsidiaries have lost their dominance. The new leaders in Africa’s banking space come from several countries, such as Morocco, Nigeria, South Africa and, more recently, Kenya and Gabon. Banks in these countries are driven by the overwhelming ambition to expand. Hence, they are seeking new markets throughout the subSaharan Africa, and are expanding either by acquiring an existing bank or by creating an entirely new entity. In this context, advanced technologyenabled financial services solutions facilitate integration across multiple channels, and help deliver a standardised and coherent experience to all customers across channels and branches. Infosys Finacle has been the right supporting partner for top banks in Africa bringing not just product fit but delivery and implementation excellence to the table. One of the largest banks in sub-Saharan Africa opted Finacle universal banking solution, to drive its core banking, corporate e-banking, alerts, and CRM. “The bank partnered with Infosys Finacle because of its proven track record in Nigeria,” explains Gosavi. Infosys has dedicated engagement teams for individual accounts and focused business development teams that understand bank requirements and how technology maps to business needs. This has been a critical reason for the successful adoption and implementation of Finacle across African banks. Banks are not just relying on branch networks, but also digital channels such as internet and mobile to improve penetration and reach. Banking products and services are also multiplying and becoming more innovative, based on e-payment, Internet and mobile banking technologies. Latest technology such as Finacle ensures infrastructure scalability and supports the large range of functionality the banks require. Infosys has been able to deliver quality banking services through Finacle because of its strong professional services team that comprises an integrated delivery and support services unit, as well as regional support centres based in Africa and Middle East to support customers round the clock. It also offers an extended support network of strategic partners who offer consistent support to the banks under all circumstances. More and more African institutions need to embrace new technologies and "optimise" processes to increase staff productivity. Another imperative is to check fraud to minimise losses. This can be achieved by

efficiently managing risks. The solution lies in establishing credit worthiness; deploying mobile phones to verify identification, and carrying out due diligence and advanced analytics of the self-employed sector to build their financial profile. Technology can easily facilitate these and also help mitigate risks. The number of online banking threats is also on the rise, with more than 125,000 new malicious programs generated everyday, according to the Russian multi-national computer security company Kaspersky. Hence a sound system must be in place to counter fraud and data vulnerability threats. The continued disruption in the payments business must be effectively managed. Banks are increasingly resoting to e-banking solutions, which prove reliable and secure, and deliver leading edge protection through multi-factor authentication and access control. Also, banks must offer micro-savings, microcredit and micro-insurance offerings to the low income groups. A lower cost point to serve large numbers of low value accounts is also critical. “Strong technology infrastructure, such as those provided by Infosys Finacle, can provide the necessary stimulus for financial inclusion and continued growth,” believes Gosavi. Developing and promoting innovative new financial services products such as Finacle will enable African banks to improve on their current success. These technology enhancements can also facilitate the complete modernisation of Africa’s retail and commercial banking services. For instance, in a bid to enhance its digital commerce solution, a large tier- 1 bank in South Africa decided to choose Finacle. This has helped the bank to identify new revenue streams such as instant cashless payments and vibrant commerce between merchants and consumers. Finacle has also been providing innovative, secure and reliable banking solutions for many African countries including Nigeria, Uganda, Tanzania, Mozambique, and Jamaica. More challenges and the way out Although, African markets are expanding and becoming more integrated; and trade flows are booming, the need of the hour is a stable and well-performing banking sector that can capitalise on economies of scale. To ensure viability and profitability, they must aim to grow regionally, moving beyond their local borders. The regional expansion of the I&M Group in Mauritius, Tanzania and Rwanda is a fine example of a step in the right direction. Banks also must look at lowering the cost of their operating model to deliver proficient services to large, low-income populations at an affordable price. Self-service through ATMs and


multi-functional ATMs, direct channels for banking, and promotion of card/mobile payment must be promoted on a large scale. The challenge is to make banking easy and useful for customers even as it is profitable for providers. Banks need to work out reliable partnerships with mobile companies for a successful service model. These models must be tailored to suit the local culture and requirements. Technology, such as Finacle, cannot be ignored in this whole equation, as they enable African banks to implement innovative services and products that accelerate the overall economic growth. Technology serves as a strong transformation partner to support the banking institutions’ branch network expansion and business growth. For instance, to support over 1.3 million user accounts and to fuel its growth strategy, one of Nigeria’s oldest banks chose Infosys Finacle. The Infosys banking product belongs to a family of new technology which can enable the consolidation and integration of multiple existing systems at banks and eliminate the cost of operations across all branches. “Banking solutions built on robust, configurable and extensible architectures, such as Finacle, allow seamless deployment with multiple host systems. These are what the African banking sector needs to embrace for ongoing growth, which can also have a cascading impact on the overall economy of the continent,” stresses Venkatramana Gosavi. The last word Primitive and traditional ways of banking have long become obsolete in this part of the world. Today, technology, and modern practices and standards have infused the banking industry with advanced capabilities and efficiencies, which are slowly reaching the largely untapped population. The bottom line is that the industry is getting closer and closer to the customer through better services and products powered by technological enhancements. If security is addressed through strong fool proof mechanisms, the banking sector is sure to stay ahead of risks and competition. The keys to continued success are innovation, technology, and secure data. Data is also the new oil which must be tapped by the African banks to drive innovation , and lead change. The revolution seems to have only begun and is poised to reach a great of maturity in the long run. By strengthening its best practices, by having a foresight, by adapting quickly to the changing market dynamics, and by adopting the latest financial services solutions and tools, Africa’s banking sector can set a fine example for the rest of the world. ■

African Review of Business and Technology - September 2013


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The virtual business of human development Businesses are capacity building to gain shares in the huge profitability from low-income communities


Kenyan-based private education chain Bridge International Academies - has been demonstrating the potential that educationa and training enterprises hold in terms of service delivery and profitability. Starting at the height of the post-election violence in early 2008 by two Americans and a Swiss-Canadian national, this education business has grown to post revenues of more than US$500,000 while only targeting the low income informal settlement population. “Even with the political instability of 2008 in Kenya, the country had a huge needy and potential market, a pool of highly educated professionals and clients looking for quality affordable education for their children especially in low income slum areas”, observed Jay Kimmelman, the CEO and co-founder, and one of three investors who decided to risk their seed capital and set up the private education academies. The business comprising primary school academies - mainly in low-income areas - have grown from the first one set up at the seedy Mukuru kwa Njenga slum, in the outskirts of Nairobi to 84 academies countrywide. Nairobi and its environs has 23 academies in informal settlements of Dandora, Kawangware, Githurai and Mukuru kwa Reuben. Dr Shannon May, a co-founder and the chief strategic officer during an interview with African Review at the company’s headquarters along Mombasa Road in Kenya’s Industrial Area, described how the company had grown by charging low fees, using technology to cut costs and identifying needy areas - to 135 sites. The company undertakes market research, identifies viable areas to set up an academy buying or leasing land and then constructing our classes using local constructors. “Classes are also constructed to mimic the local buildings to minimize theft”, noted Kimmelman, an American national. In most areas, classes are constructed with iron sheets, timber or clay blocks to mimic the


surroundings and reduce the likelihood of vandalisation. Equally, desks and other facilities such as toilets are built to fit into the existing local standards. According to Kimmelman, the parents are the clients and the company has to provide quality education for the business to continue growing. He says that company’s turnover relies on the fees payments with no other source of funding. “We engage positively with our clients to identify areas of weakness and make changes to suit their needs. While our students follow the 8-4-4 system used in the country, we have developed teaching materials that make learning student friendly –making our students outperform others in five years of study,” said Kimmelman. Well-structured for smart business An extensive tour given to African Review revealed that Bridge International Academies has well-structured departments, each dealing with different aspects of the business- from research, legal, real estate, construction, academy operations, human resource, marketing, Information technology and finance. But it is the use of technology that has helped cut cost in operations and staff. “By using virtual technologies where our academies are located, we can encourage our clients to pay school fees via MPESA or through a bank account at Equity Bank. So far, more than 84 per cent of clients pay through the mobile phone platform with the rest through the bank,” noted Phil Frei, president and founder of Bridge International Academies. He added that each academy has a manager and teachers - with no other staff - who are connected to the company’s headquarters by smartphones, with the relevant software developed by the company itself. “The smartphone applications connect staff in far-flung academies in real-time. Issues such as payroll, academic performance, parents, fees payments and other issues can be solved

African Review of Business and Technology - September 2013

Bridge Academy students with teachers using tablets in classroom instruction (Photo: Mwangi Mumero)

quickly without involvement of extra staff such as bursars”, said Frei, a Swiss-Canadian national who is also in-charge of information technology at the company. Bridge International Academies also has a call centre at its Nairobi office to handle queries and issue emanating from the academies. For their part, teachers have tablets where the curriculum, lesson plans, students’ assignments, attendance and parent’s information is accessed quickly and efficiently. Each academy has 22 teachers when fully operational and 15,000 tablets are being released to these staff who have to undergo a six-week specialised training. “We hire staff from the neighbourhoods of these academies to create jobs and a sense of ownership. We also use local constructors and source materials locally to reduce logistical costs,” said Dr Shannon, also an American. Currently, Bridge is the only private company in education that has invested in sophisticated research tool and technology to identify and acquire suitable land plots for the construction in informal settlements. Use of GIS survey equipment, satellite imagery and market intelligence has helped acquire households information and land availability. With the success of the Kenyan business, Bridge International plans to venture into emerging markets mainly in Uganda, Nigeria and India. “We plan to have an enrollment of 10mn students globally and become the leading private education company across the globe”, sums Kimmelman. ■ Mwangi Mumero

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Telecommunications TECHNOLOGY

Opportunities to renew African business The critical role of high-speed international connectivity in the emergence of African trade and commerce


ncreasingly recognised as a vitally important player on the world economic stage, Africa was home to six of the world's ten fastest-growing economies between 2001 and 2010. Analysts anticipate an overall rise in GDP of between 5 and 7 per cent across the continent as a whole in 2013, and for the period 2011 to 2015, no less than seven of the ten fastest-growing economies in the world are expected to be in Africa – further boosting the continent’s position within the global marketplace. Critical role of high-speed international connectivity Integral to this growth has been the improvement in high-speed international connectivity, which has been brought about by a significant uplift in international submarine capacity - delivered through new, high-capacity cables and upgrades to existing systems – and a substantial increase in Africa’s terrestrial fibre networks. Together, these two factors are providing businesses and individuals with unprecedented, affordable and reliable access to Internetenabled services, applications and capabilities. Customers throughout Africa are displaying a seemingly insatiable appetite for the increasingly reliable, high-performance services enabled by the high-capacity bandwidth being brought to them through integration of the new and upgraded submarine cables with the enhanced terrestrial networks. Improved internet access and the increasing affordability of highspecification mobile handsets have contributed to the phenomenal growth of mobile, internet and data services in Africa over the past

few years, and these are playing a pivotal role in the economic expansion of the world’s second largest continent. Soaring mobile phone and internet usage In December 2012, the World Bank reported the rapid expansion of Africa’s mobile phone market, from around 50mn subscribers in 2003 to approximately 650mn at the end of 2012 – making it larger than both the European Union and the United States. Internet bandwidth has grown enormously too, as hundreds of thousands of kilometres of new fibre-optic cables have been laid across the continent and millions of dollars have been invested in new mobile technologies to serve an increasing number of the continent’s one billion citizens. Up from around 20 per cent in 2005, mobile penetration across the

African Review of Business and Technology - September 2013


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TECHNOLOGY Telecommunications continent now exceeds 60 per cent and is expected to reach 75 per cent by 2016 in sub-Saharan Africa. Mobile penetration globally is approximately 85 per cent. The growth in internet usage in Africa has also been staggering, up from 4.5mn users at the start of the century to more than 167mn at the end of 2012. Unlike most other parts of the world, the relatively high cost (compared to average income) of PC ownership and the limited availability of fixed-line infrastructure in Africa have resulted in the majority of this growth coming from mobile internet. In South Africa, for example, more than 90 per cent of broadband internet is delivered over mobile devices and in Kenya more than 98 per cent of internet access is over the mobile infrastructure. These changes, which improve how businesses in Africa operate and impact the way many Africans go about their daily lives, have only been possible with the dramatic advances made in the availability, reach, reliability, capacity and diversity of international submarine and terrestrial fibre connectivity into, within and out of Africa. Submarine and terrestrial expansion At the beginning of 2009, only two international cables served subSaharan Africa: SAT3/SAFE, connecting a number of countries across western and southern Africa; and Atlantis-2, linking Senegal and Cape Verde to South America and Europe. Most international links use expensive, low capacity satellite circuits, with the high costs severely restricting internet uptake and inhibiting rollout of broadband services. Since 2009, nine new cables have gone live: Main One, Glo-1, WACS (West Africa Cable System) and ACE (African Coast to Europe) serving the west African region; and on the east coast Seacom, TEAMS (The East African Marine System), LION2 (Lower Indian Ocean Network), SEAS (Seychelles East Africa System) and EASSy (East African Submarine System). The total design capacity of international submarine cables into and out of sub-Saharan Africa is now more than 22Tbps. As new submarine cables were landed, this strengthened the business case for improving the reach, reliability and capacity of terrestrial fibre networks within Africa. Between 1995 and 2005, US$25bn was invested in the ICT sector in sub-Saharan Africa, mainly by private operators and investors. This investment resulted in a rapid expansion of communication networks, and by 2006 more than half of the population of sub-Saharan Africa was living under a mobile footprint. In some African countries, such as Kenya and Malawi, almost the entire population is now within range of a mobile network. Ongoing investment According to Hamilton Research, by Q1 2013 Africa’s total inventory of terrestrial transmission networks had surpassed 785,500 km – enough to wrap around the earth more than 19 times. This compares to a mere 465,659 km in June 2009. Of the total inventory, 438,838 km is fibre-optic network – representing the vast majority of new deployments. Over the last 12 months, an average of more than 115 kms of new fibre network entered service per day and there will soon be continuous interconnected terrestrial fibre network running from Cape Town to Cairo. Equally importantly, the new cables have also encouraged a competitive market for capacity sales. As a result, Price increasingly became the key consideration in the purchasing decision for international submarine cable capacity into Africa. As wholesale prices fell, operators were able to purchase more capacity to meet the evergrowing demands of their customers. With increasing availability and falling costs of high-speed international connectivity into Africa, domestic and business endusers have become increasingly dependent upon the high-performance services on offer and the opportunities they create. From improved business efficiency and productivity, through to


African Review of Business and Technology - September 2013

accessing music and video streaming, online gaming and popular social networking applications such as Facebook, YouTube and Twitter, customers now want, expect and demand access to these Internetenabled functions 24x7x365. This evolution in end-user expectations heralded a further change in international capacity buying behaviour. The leading ISPs, telcos and carriers started to place greater emphasis on securing network diversity to reduce the impact of individual cable cuts and other service-affecting disruptions, so that they could deliver the high-quality services increasingly demanded by their customers. In the most competitive markets, the discussion is no longer simply about whether or not to invest in diversity, it is now about having sufficient diversity – truly redundant capacity on multiple cables. In such competitive environments, a key consideration for carriers, national operators and ISPs is to provide their customers with the highest quality of service as excessive downtime risks an exodus of customers to ‘more reliable’ competitors. This means ensuring they have sufficient capacity and enough diversity across the right networks – i.e. those that will best serve them and their customers in terms of service continuity, network resilience and network management. As a result, purchasing in the international African capacity market has recently begun to evolve a step further, with the focus increasingly shifting from simple diversity to securing a high-quality network. Here, quality encompasses many different aspects of the overall international capacity offering: how well protected and reliable the primary network route is, the ability to deliver alternative routes to avoid network bottlenecks; how quickly and efficiently traffic can be re-routed when a service interruption does occur, and the costs associated with this; levels of support; responsiveness to changing requirements; and the desire to create long-term partnerships. A land of opportunity The continued expansion of ICT in Africa is a critical enabler for growth - attracting foreign investment and financing, creating opportunity and employment across a multitude of sectors and markets, generating income and improving lives. It will also continue to be one of the key factors in the ongoing emergence of a larger and more influential African middle-class. For African and international telcos and ISPs, a powerful combination of factors – including the explosion in mobile broadband uptake and huge growth in the use of data-rich personal and business applications – is making the African continent a place of genuine and significant opportunity. Whilst the recent wave of new international submarine cable deployments landing in Africa has largely subsided, local cable builds, large-scale capacity purchases and upgrades will ensure that the competitive market for international bandwidth continues. The result for businesses and individuals is that Africa is a more attractive location from which, and with which, to do business. ■ Mike Last, director of marketing and international business development at WIOCC

Contracting to connect sub-Saharan Africa


IOCC is now working with DANTE (Delivery of Advanced Network Technology to Europe), to a 15 year contract for connectivity services in southern and eastern Africa, which has begun with a two-year planning and procurement phase for the AfricaConnect project - which will, from 2015, novate from DANTE to the UbuntuNet Alliance, complementing the UbuntuNet highcapacity network for African research and education, which creates a regional gateway for global research collaboration improving lives through accelerated research and education, and benefitting collaborative scientific research.

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How automation is set to innovate lending A

frica is definitely on an upward economic spiral, and from this growth comes an emerging middle class with more disposable income - leading to more consumer spending and unstructured loans, particularly by retailers helping customers acquire goods and services by extending credit. The challenge is that burgeoning demand is driving such high volumes that micro-lenders are struggling to keep up with the administration and management of these loans. Ké Concepts’ credit management solution, CreditEase, has been deployed across Africa with great success - which the company’s MD, Gary Green, attributes to its solutions being speciifically developed for Africa’s prevailing technological and economic conditions. Green

said, “Technology is instrumental to driving the success of micro lending in Africa, not only through credit management solutions, but through credit automation – a solution set that is emerging as an important business enabler in the region.” Automation means lenders can process more loans, faster and with fewer errors, while enforcing consistency with pre-determined criteria. “Rules for lending are created in the best interest of the business. The more automated the process, the more likely that these rules will be enforced, containing risk from the get go.” Effective financial responses Mr Green also noted that automation improves responses to prevailing conditions. “Business

agility is critical for these businesses to be able to contain risk or take advantage of opportunities as they arise, contributing to competitiveness and profitability.” The final key benefit is integrity of data. “It’s been proven that there is a direct correlation between the integrity of data provided in credit applications and the probability of default or non-payment. With the ability to verify through automated processes that data provided is in fact correct, and ensure additional details such as next of kin or alternative contact details are also captured, lenders have a better chance of tracking down and rehabilitating defaulting customers, lowering the overall risk that extending credit brings to the business.” ■

Silvertree Capital invests in Nigerian e-commerce Based in Cape Town, South Africa, Africa-focused business builder and venture capital investor Silvertree Capital has invested in two of Nigeria’s largest e-commerce sites, and Both of these leading e-commerce sites offer a broad range of top consumer brands to the burgeoning online shopping market and have a free delivery charge throughout the country. specialises in genuine, high-fashion eyewear and contact lenses while secures one of the top positions in online retail for cosmetics, fragrances and personal care products. Both e-commerce sites have been built and funded by Startup Partners Africa (SPA) based in Berlin, Germany and Lagos, Nigeria. Silvertree Capital conceives, launches, supports and invests in startups targeting the South African and Sub-Saharan African markets. Its focus industries are online/mobile with clear revenue model; B2C ecommerce; and B2B2C sales. It builds its own ideas, supports entrepreneurs and partners with corporates. It focuses on execution, using its track record in e-commerce and deep knowledge of Africa. Manuel Koser, founding partner at Silvertree Capital and previously co-founder at Zando, said, “We are very enthusiastic about the online market in Nigeria, which is beginning to show tremendous growth as more consumers start using the internet to shop.” Nigeria has a population of over 160mn people, roughly three times the size of South Africa and is rapidly increasing. In 2012, the Nigerian retail market had a volume of approx. EUR 30 bn with 15 per cent yearly growth rate. Internet penetration is at ca. 30 per cent fuelling the tremendous e-commerce growth.

African Review of Business and Technology - September 2013


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The entry of e-Pass port procedures How customer experience management systems enable port customers to apply in advance and track progress of shipments


bu Dhabi Ports Company (ADPC), the developer and manager of commercial and community ports, and the Khalifa Industrial Zone Abu Dhabi (Kizad), have announced the next steps in its plans to support the growing cruise business at Zayed Port, Abu Dhabi. Figures for 2012/2013 show a total of 96 vessel calls and 155,000 passengers visited Zayed Port, Abu Dhabi last season. Zayed Port’s convenient central location makes it attractive to tour operators, as it offers easy access to Abu Dhabi’s expanding leisure experience and growing range of luxury hotels and resorts. Increasing the cruise business to the city is one of Abu Dhabi’s main tourism-related targets and Zayed Port has more capacity now that all container traffic is handled through Khalifa Port. However, the existing cruise liner facilities at Zayed Port offer little room to handle the projected growth. To address this, ADPC has allocated the south-eastern end of the port berth, the end closest to Sheikh Khalifa Bridge, as an area to be developed specifically for cruise liners and passengers. The new space will offer an immediate increase in capacity for the forthcoming season and space for further expansion in the future. A focus for commercial development The main focus for the new development will be a permanent state-of-the-art terminal building and a traditionally themed souk and heritage area, with activities to entertain both passengers and the general public. The exact design and plan for the terminal building is under discussion as it has the potential to be another iconic symbol for Abu Dhabi. In the interim a new temporary terminal facility is planned for the next season, which although temporary - will still enhance the cruise passenger experience. Moving the cruise ship berthing area to the new location will also allow for the opening of a new gate for passengers – a dedicated Cruise


Cruise vessels will gain better commercial prospects at Zayed Port

Port Gate which will be accessed from underneath Sheikh Khalifa Bridge – allowing easy access to the growing tourism destinations on both Saadiyat and Yas Islands. Overseeing and managing the new development, ADPC has determined that the cruise liner terminal project will be divided into several phases. Phase 1 will be completed for the start of this season (October 2013), offering accommodation for two large cruise ships and one small vessel. The following phases will be developed as appropriate according to market potential and demand. With respect to the proposals Mohamed Al Shamisi, acting CEO, ADPC said, “For more than 40 years, Zayed Port was the major lifeline for Abu Dhabi’s import/export trade, making it a vital port in the region. “Now that all container traffic has shifted to Khalifa Port, the first semi-automated facility in the Middle East, we are looking forward to maximizing Zayed Port’s capacity, allowing us

African Review of Business and Technology - September 2013

to focus on a growing cruise line business and reinforcing Abu Dhabi’s position as a world class tourist destination.” Sultan Al Dhaheri, director of tourism ecosystems at TCA Abu Dhabi, added, “These cruise terminal improvements will deliver a lasting first impression for disembarking passengers and will be a strong visual statement of our commitment to a sector which offers great growth potential. “Long-term, we believe the diversified shore excursions of the emerging Saadiyat Island Cultural District and our UNESCO World Heritage sites in Al Ain will set us apart in a competitive regional market. With our hosting of the Seatrade Middle East Forum in December, we can – with our stakeholders – demonstrate we have the facilities and range of passenger options required to encourage the world’s leading cruise lines to consider Abu Dhabi as a seasonal home-port destination, and add Zayed Port to their itineraries as a regular port of call.” ■

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Carrying more by the cloud, for less cost Recent technological developments mean that cargo transport by air across Middle Eastern and African skies is more efficient and cost-effective


tihad Airways, the national airline of the Unites Arab Emirates and one of the world’s fastest-growing full-service carriers, is now committed to a partnership with global information, communciations and technology specialist SITA over the next decade. A multi-million dollar, ten-year strategic agreement ensures the airline is provided with the latest global infrastructure solutions, while reducing the cost and complexity of information technology used by the carrier. The partnership underpins Etihad’s vision to be a truly 21st century, global airline, challenging and changing established conventions. What does that mean in terms of Middle Eastern and African cargo transportation? Over the decade, SITA will deliver infrastructure and end-user computing solutions powered by the Air Transport Industry (ATI) Cloud, which will ensure up-to-date services are continually available as Etihad expands its global presence. Etihad is also adopting innovative new services including SITA CrewTablet, which its cabin crew will use to access passenger and operational data via tablets. This end-to-end mobility solution designed specifically for the airline industry will enhance in-flight services and customer interaction for Etihad’s more than 10mn passengers. In addition, SITA is working with the airline to establish new connectivity solutions at airport gates to enable the most efficient management of Etihad’s next-generation aircraft.

“Our pioneering business model, based on growth through partnership, has seen us invest in five other airlines and initiate discussions to invest in a sixth, making the SITA partnership even more important as we seek technology solutions which will meet our own requirements and increasingly those of our equity airline partners. SITA’s extensive portfolio of infrastructure services can be tailored to our specific needs and most importantly can be deployed quickly.” SITA CEO Francesco Violante complemented Hogan’s veiws, thus, “Our partnership with Etihad gives us an opportunity to collaborate with one of the world’s leading premium airlines, which is based in the Middle East, a global centre of aviation growth. Our aim is to reduce the complexity of IT by providing flexible, global solutions so Etihad can focus on customer excellence and growing its business.” ■

Evolving the cost structure of the cargo business Attending the recently-held Air Transport IT Summit, Etihad CEO James Hogan said, “Etihad Airways has enjoyed a productive partnership with SITA since our establishment in 2003. We continue to work together on evolving and new technology which not only will reduce our costs and increase our productivity, but also will contribute to improvements in the service we continue to offer to our guests.


Francesco Violante of SITA, with James Hogan of Etihad Airways, at the 2013 Air Transport IT Summit (Photo: SITA)

African Review of Business and Technology - September 2013


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Transforming Kenyan air freight operations How and why the utilisation of a new freighter and equipment at Kenya Airways is supporting a new vision for transport


nder Kenya’s Vision 2030, the nation’s government has prioritised the export sector as a key driver of economic growth. The board of Kenya’s Export Promotion Council (EPC) has, moreover, applauded the national administration’s position on export trade, and particularly the prioritisation of trade. The EPC looks to Kenya Airways, the national carrier, to support export-oriented initiatives, since the airline is deeply embedded in service to member states of the East African Community (EAC) and Common Market for Eastern and Southern Africa (COMESA). So, the recent arrival of a new freighter and the launch of the KQ Cargo service presents a unique opportunity for expansion of trade, especially once fully operational, expected to enhance Nairobi’s emerging role as the EAC’s regional business hub. The KQ Cargo service will go a long way towards ameliorating constrained freight capacity on several routes hitherto operated by narrow body passenger aircraft. This matter has seriously affected Kenyan exporters and investors, and the EPC has extended its fullest support for Kenya Airways in undertaking this service, which is in service to Jube, Kigali, Entebbe, Dar es Salaam, Kinshasa, Bujumbura and Luanda.


Kenya Airways supports Kenyan exporters and entrepreneurs

Serving the regional business community, to serve the business of a nation It is important for the Kenyan business community that the nation’s government has focused and prioritised its promotion interests within the EAC and COMESA. However, particular opportunities await those investing in trade between Kenya and South Sudan, and between the Kenya and the Democratic Republic of Congo (DRC). Between these economies, business has already been made easier by the in-building of cost-effective communication and transport links. Kenya Airways has reliable

African Review of Business and Technology - September 2013

flights to these destinations and is vigilant with respect to the need to remain competitive to attract and sustain business. The EPC’s core mandate is to promote Kenya products by facilitating the consolidation, expansion and diversification of Kenya’s export products and markets for goods and services. This mandate can be fully realised only through collaboration with key private sector players such as Kenya Airways. KQ is already renowned for the maximisation of business opportunites. It is worth noting that, despite the many challenges faced internally and in global markets, Kenyan exports have been on an upward trend. reaching KSh511mn (US$5.8mn) in aggregate merchandise trade by 2011, up from KSh345mn in 2008 (according to the Kenya Bureau of National Statistics). The country trades heavily within Africa, with exports to other African nations accounting for 49 per cent of all Kenyan export business. Five of its top ten export markets are Uganda (14.9 per cent), Tanzania (8.2 per cent), Egypt (4.6 per cent), Sudan (4.3 per cent), and DRC (3.4 per cent). Kenyan exporters and entrepreneurs stand to reap more from export-based opportunities, especially now that Kenya Airways is operating this new freighter service. ■

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Taking ownership of automotive affairs

How Iveco SA's market profile and prospects have improved as it has adopted an increasingly sustainable - and increasingly African - business model


verall, Southern African market performance has been good in recent years - and outstanding for Iveco, in particular. The National Association of Automobile Manufacturers of South Africa (NAAMSA) indicates that sales of new light commercial vehicles, bakkies and minibuses - at 13,729 units - have increased by 2.3 per cent during the year to June 2013. Sales of vehicles in the medium and heavy truck segments of the Industry - at 1,040 units and 1,736 units, respectively increased by 20.5 per cent in the case of medium commercial vehicles, and 3.8 per cent with respect to heavy trucks and buses, between June 2012 and June 2013. Iveco's southern Africa MD Bob Lowden takes a good 360 degree view of the markets he operates in, and the commerce he is responsible for. An engineer by trade, but one with an Business and Economics degree - and experience of Iveco's operations that stretches back to his first post at the company in 1990 - Lowden commands responsibility for Iveco's business in 19 African countries. He spoke to African Review about Iveco's market profile and performance in sub-Saharan Africa, and the strategic initiatives underway to continue recent market growth. Furthermore, Lowden conveyed a sophisticated appraisal of Iveco's sales prospects in relation to the volumes of freight traffic across southern Africa. For nearly 20 years, from its establishment in 1993, Iveco South Africa maintained a fair market share within the territories of the southern African Customs Union (SACU) - with good outreach from its Johannesburg base to export operations in countries


African Review of Business and Technology - September 2013

including Angola, Malawi, Mauritius, Mozambique, Tanzania, Zambia, and Zimbabwe. That is to say, for nearly two decades sales were steady, respectable. What Iveco recognised, and the reason Bob Lowden was installed in Johannesburg early in 2012, was that sales could yet be truly dynamic, with truly dynamic leadership. Iveco's products are acknowledged throughout the globe for their quality and adaptabilityand Iveco's leadership understood that a little extra drive and direction would deliver the rewards, in terms of greater numbers of units sold in southern Africa, that the company's investment in its products merited. Iveco designs, manufactures, and sells a comprehensive range of medium, heavy and extra-heavy commercial vehicles to suit a wide range of public and private sector applications. Principally, the company offers the Daily van and chassis cab, on-road and off-road variants of the EuroCargo medium-heavy truck, the on-road extra-heavy Stralis and off-road extra-heavy Trakker. Additionally, the Daily and Power Daily minibuses cater to the passenger transport market. Determined leadership for dynamic transformation Bob Lowden knows he has the products to deliver real results for southern African businesses, and he has been reaching out to markets across the continent with innovative approaches. This is more than a matter of having superior products, the right combination of quality and pricing, and the determination to succeed. You have to speak to customers in the language they understand - the lexicon of business; you need to address concerns not only with respect to product performance,

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but with regard to purchase and delivery options, vehicle or fleet financing, and after-sales service. South Africa customers, in particular, are demanding - and a failure to deliver to a high standard can lead to a high rate of failure. Complacency kills business. Amongst Bob Lowden's prime concerns is that his customers are served well, and that the market knows how they are served. His strongest suit is the 30-strong dealer network in South Africa itself, with a further 13 dealers outside this country - and the product segment with greatest returns is the extra heavy truck market, for which Iveco offers both the Stralis and Trakker variants. However, expansion is on the cards. Between 2013 and 2016, Lowden aims to continue to achieve exponential growth increasing Iveco market at a faster rate than the market itself is growing but sustainably, entrenching the benefits of successful sales to last beyond his own tenure at the company. He quotes expected growth in southern Africa markets of between seven and nine per cent to 2016, and expects growth at Iveco SA over the same period of around 30-40 per cent. That is, actually, quite realistic. Iveco was achieving modest growth before Lowden's arrival. Last year's sales (2011-12) increased by 30 per cent. This year (2012-213), growth in sales is estimated at another 30-40 per cent. Mr Lowden reports that forward orders are already ten-fold up on two/three years ago - and that the supply chain and other elements of the sales ecosystem have been revamped and refined to manage the increased numbers of units passing through the channel. The transformation of Iveco SA is very much allied to transformative investment in production and distribution, at a local level. Through 2013 and 2014, around R600mn (US$60.8mn) will be placed by the firm in the development of a new manufacturing facility and associated sales and services operations, through a joint venture with Larimar Group, a diversified industrial enterprise with strong South African roots. The JV splits at a 60 per cent stake held by Iveco, with the remaining 40 per cent

held by Larimar. The new facility, which is being built at Rosslyn in Tshwane, will undertake completely knockdown assembly of trucks, coaches, and buses. Around a thousand jobs will be created locally - but the benefits extend beyond employment in the local economy. It means something to Africans to buy equipment from companies in which Africans have a genuine stake. Iveco gets local empowerment, and understands the political imperative for more local content in the provision of manufacturing and services. There is a purely corporate motive, of course - in that assembly African soil averts the costs associated with importation - but the local story is more compelling both to the company and the economy in which it operates. The rewards for entrepreneurship Iveco's appeal to southern African markets is enhanced by the prospect of increased engagement with potential and actual customers bases. Bob Lowden now drives Iveco sales up with a new, motivated management team - but he has also overseen the company's move into used-vehicle sales, and offering new packages including trade-ins and buy-backs. In partnership with Standard Bank, and with an experienced financial specialist on board, Iveco SA also offers vehicle and fleet financing options - and Bob Lowden has plans in place to deliver a fully-fledged financial services arm over time. And Lowden is building his dealer network, reinvigorating it with entrepreneurial individuals prepared to dedicate their efforts exclusively to the Iveco brand and product portfolio. He encourages a determined, nakedly commercially approach to market, albeit underpinned by a sustainable business model, with a clear focus on developing operations to match the market, and then take ownership of it. And he encourages those with entrepreneurship in their blood to sign up. He says, "Iveco is committed globally to distributing products through an independent dealer network. We are looking for new dealers in Africa, new entrepreneurs to come on board." An example of the successes achieved during Bob Lowden's tenure at Iveco SA include the decision by Bogdan's Bulk Transport to change its fleet from UD to Iveco. Last year, the company chose Iveco trucks to transport cementitious dry bulk products - 100 Stralis 430 models, sold through Truck Centre, an independent Iveco dealership, with fully integrated operational and after-sales service support included in the package. Lowden's door is open to new business with dynamic new businessfolk. You can call him and his team at +27112053990. â–


African Review of Business and Technology - September 2013

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Room for growth of imported diesel gensets Research into recent performance of generator sales into Africa


ccording to Powergen Statistics Consulting Ltd. (PGS), a decline of diesel generator set imports has been experienced in all power ranges in Q1 2013 compared to the same period in 2012, with a 30 per cent drop for the highest power range of products over 375 kVA. Key African markets have been hit by this decline, causing a strong negative impact on the overall picture, PGS said. Angola and Nigeria, which are listed as the top two African countries for imports, have reported a decline in diesel genset imports, whereas Algeria, in contrast, has been showing

strong growth of approximately 50 per cent over the past year, the company stated. This growth has been distributed evenly across all power bands, making Algeria a market that needs to be tracked closely by diesel genset exporters to Africa, PGS advised. France, Italy and Spain are the countries which have benefitted most from this growth, followed closely by China, the company added. While the UK is still the biggest exporter into Africa (followed very closely by China), British exports have decreased dramatically when compared to the first quarter of last year, while

Algeria has been showing strong growth of imports, with an increase of approximately 50 per cent over the past year.

Chinese and French exports have shown a relatively small progression. â–

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Southern Africa’s new gas-powered plants Finnish expertise underpins Sasol’s work on new power plants in South Africa's Free State province and in Mozambique


he largest power plant running exclusively on gas engines on the African continent, and the first of its kind in South Africa, was inaugurated at the Sasolburg, Free State site of petrochemicals company Sasol recently. The electricity produced by the 140MW plant will be used by Sasol's chemicals factory next to the plant, with about half of the production being fed into South Africa's national grid. "This plant is a significant milestone for Sasol, as we begin to ease our load on the national grid and contribute to our own energy efficiency targets," Sasol senior group executive Lean Strauss said. According to Sasol, the plant, which has consistently been producing above its operating capacity at 152MW since commissioning in December 2012, will allow the company to generate 60 per cent of its own power capacity, easing its reliance on the country's grid. It will also enable Sasol to eventually reduce its CO2 emissions by a further one million tonnes per annum. "This is a very successful project for Sasol New Energy, below budget and ahead of schedule," said Sasol New Energy MD Henri Loubser. The plant was completed three months ahead of schedule and almost 20 per cent below budget, with 500 jobs created during construction and 44 permanent jobs created in Sasolburg. Building and maintaining power in SA According to Sasol, gas-powered plants require less time to build and install, taking between 20 to 30 months, opposed to the 40 to 50 months required for a coal-power plant and 60 to 80 months for a nuclear plant. Sasol's new power plant is being operated and maintained by Finnish energy company Wärtsilä, which built and installed the plant's gas engines, under a three-year agreement which includes the training of Sasol New Energy staff members. Wärtsilä offers power


The new plant in Mozambique will be powered by a total of 18 Wärtsilä 34SG engines running on natural gas, with the gas being fed from the Pande and Temane gas fields

solutions for every phase of oil and gas exploration, production, transportation and refining, both onshore and offshore including prime movers and power plant solutions, EPC deliveries, and lifetime support solutions to maximise revenues and minimise downtime. The Finnish enterprise provides pre-engineered power generation equipment tuned to meet the special needs of gas compression and pumping applications. Its solutions for the oil and gas industry are tuned to meet the special needs of power generation. These prime movers, ranging from 1–22MW, can run on various liquid and gaseous fuels available from the process. Making more energy in Mozambique Along with Sasol and Mozambican state power company Electricidade de Moçambique, Wärtsilä is also involved in the construction of a similar gas-fuelled power power plant at Ressano Garcia in Mozambique. Sasol said this project was on

African Review of Business and Technology - September 2013

schedule to start generating electricity as early as the second quarter of 2014. The selection of Wärtsilä gas engine technology for this project was based on a number of considerations. Notably, Mozambique is a country with considerable gas reserves but with a scarcity of water resources. Wärtsilä’s gas engine technology, which features closedcircuit cooling with minimal water consumption, was a natural choice. “There is rapidly growing demand in Mozambique for electricity, and Wärtsilä has demonstrated its capability to provide competitive and comprehensive turnkey power plants with outstanding operational efficiency and minimum environmental impact. Furthermore, Wärtsilä has an excellent track record in project management and fast track delivery of power plants, which also were key considerations for them selecting us,” says Vesa Riihimäki, president, power plants, Wärtsilä Corporation. ■

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South Africa's west coast wind power Ongoing development of the Sere wind power plant in Vredendal, in SA's Western Cape province


iemens Energy is working on new infrastructure for an onshore wind power order for the Sere wind power plant on the west coast of South Africa, following the second of two wind power orders for Siemens from South Africa. The Sere project is a flagship project for the customer Eskom, which is one of the world's largest utilities. The scope of supply includes the delivery and installation of 46 wind turbines of the type SWT-2.3-108, with an output of 2.3 Megawatts (MW), a rotor diameter of 108m on 115m towers each. The deal also includes a five-year-service agreement. Installation of the wind turbines is scheduled to begin in the second half of 2013, with the start of operations expected during first half of 2014.

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Making the most of wind "South Africa has outstanding conditions for the utilisation of wind energy and has set up a remarkable renewable energy programme with the Independent Power Producer Procurement Program. We are proud to contribute to the development of wind power in South Africa with our technology, and especially proud that Eskom has chosen to rely on us for their first large project," said Felix Ferlemann, CEO of the wind power division in Siemens Energy. The first wind power order from South Africa was awarded to Siemens by Mainstream Renewable Power Limited, Globeleq, Thebe Investments, Enzani and Usizo for the Jeffrey's Bay onshore wind power plant with a total capacity of 138MW. There are many benefits. Wind is a sustainable resource and, as a primary energy source, is free. Wind is also a clean form of energy without emissions or waste products. And there are growing numbers of energy users prepared to pay for the more expensive electricity generated from renewable sources. The technology developed for this project may in future allow for the energy to be stored for use when required - for example, at peak periods. However, capital costs are high and the production cost per kWh is higher than the cheap electricity currently produced by Eskom’s coalfired power stations. Units are of small capacity (25 to 2 000kW) and it would take hundreds of wind turbines to replace a single thermal unit (currently ranging between 200-600MW). And wind resources are erratic and can be used only at certain speeds. While it is a clean source of energy, the environmental impacts of wind energy can include noise, visual pollution and negative impacts on birdlife The Sere Wind Farm may not be the cheapest optionfor power generation in South Africa - but it contributes significantly to the nation’s long-term renewable energy and CO2 mitigation strategy, as set out in SA’s Power Sector Integrated Resource Plan 2010-2030. ■

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Revamping a storage facility


The Engen revamp of Beira Terminal, an import and storage facility in the Port of Beira, Mozambique

Engen enables improved transportation to southern Africa with “massive” Beira Port terminal upgrade


frican petroleum multinational Engen Petroleum is significantly increasing its supply capacity to southern African countries, after it acquired seven in-country operations from competitor Chevron in the region and the Indian Ocean Islands. The company is currently undergoing first-phase revamp work on Beira Terminal, an import and storage facility in the Port of Beira, Mozambique. When complete, the terminal will be able to supply Mozambique, Zimbabwe, Zambia, Botswana and southern DRC. Strategic and secure Drikus Kotze, Engen’s General Manager of Engen’s International Business Division (IBD), says the depot forms part of the Mozambican component of the acquisition. “It predated all others and was aimed at strategically boosting security of supply in the region, given Engen’s increasing market share in southern and sub-Saharan Africa,” he explains. Capital investment Jan Sithole, Special Projects Manager for IBD, says the depot required a significant capital investment to overhaul and extend, as it had not been operational for a period of time. “The project involves cleaning and safe dismantling of redundant piping and two unusable tanks; revamping of three tanks and admin offices; and installation of new tanks, road tanker loading facilities, import and export piping, a firefighting system, and security system.”

Phased supply The first phase of proceedings, currently under construction, is aimed at readying the facility for import and supply of petrol and diesel in Mozambique (20 per cent) of the volume requirement), and Zimbabwe (80 per cent). This will be done via the existing pipeline to Masasa Depot in Harare . The Terminal’s designed capacity of 18mn litres (diesel) and seven million litres (petrol) is expected to be sufficient for this purpose. Once phase one projected products demands have been achieved, second-phase construction will involve increasing tank- and roadloading capacity, and the construction of a new rail-loading facility to cater for Engen’s other southern African sister companies (Engen Petroleum Zambia, to begin with). Progress report Sithole says the Beira Terminal Revamp Project scope comprises civil works, mechanical works, tankage and electrical works. “Work for the first three scopings is progressing as per schedule, and the electrical works will commence in due course,” he says. Overall, the project is on track, with the target of reaching 90% mechanical completion (installed piping, equipment and support structures) by the end of December 2013. “We want to have the depot fully operational in the first quarter of 2014,” says Kotze. “Engen aims to be a leading Sub Saharan African oil company by 2016, and this undertaking will be instrumental in us achieving that.” ■ African Review of Business and Technology - September 2013


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Ubiquitous excavators All hydraulic excavator models come with some basic features that make the ‘beast’ suitable for a range of work across terrains; here is an appraisal of some digger basics


arge or small, all hydraulic excavators consist of a hinged boom and stick assembly, a digging bucket or other attachment, a 3600 rotating platform that holds the cab, an engine, counterweight and hydraulic system, all carried on some kind of undercarriage, which may have a useful blade attachment fixed. The excavator or digger has always been the most versatile machinery on any construction site. Whether rubber-tracked one-tonne mini (compact) or the huge 700 tonne-plus machines from the likes of Komatsu and Liebherr, the basic design is essentially the same. It is always a slewing powerhouse on top of a framework that can move under its own power.

Attached to the end of the ubiquitous boom, which usually only moves up or down under the control of the operator is a dipper arm, sometimes referred to as a stick. With its attachment like a bucket or lifting hook, usually only temporarily fixed to the end, the arm provides the digging force needed to impact the attachment usefully on the ground, or perform one of a host of other functions. This available force is part of the manufacturer’s specifications which frequently cover more than 20 separate points and therefore have to be interpreted by an expert. Available reach and break-out power are subsumable sub-categories of this useful specification at the business end. Large wide buckets with straight cutting edges are

Whether rubbertracked one-tonne mini or the huge 700 tonneplus machines, the basic excavator design is essentially the same. It is always a slewing powerhouse on top of a framework that can move under its own power


du ers & ix m 4 X


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


African Review of Business and Technology - September 2013

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Excavators have always been a versatile machinery on any construction site

normally used for excavating in soft materials such as unconsolidated soil, aggregate and wet clay, also for levelling and cleaning up the worksite before further operations take place. Smaller general-purpose buckets are specifically designed with cutting teeth to break through hard ground including country rock and old concrete. Many variants of these basic buckets can be found locally, and many of these nowadays come equipped with quick-change couplings which can be safely operated from within the cab. Suppliers encourage users to employ only

buckets supplied from their own (usually very comprehensive) product ranges, but the reality is that many African customers have been mixing-and-matching their attachments quite happily for years. Indeed the hire and repair of basic excavator buckets has become an informally profitable and very useful roadside industry in many parts of the continent. The range of other attachments available is endless, and the more specialised these become (demolition breakers and logand pipeline-handling devices, for example) the more important it is to use original-

September 18 - 21 Johannesburg


supplier equipment that is designed to match the front end of the basic digger. Most of the hydraulic controls that have been at the core of these machines are operated electronically these days, requiring only finger-tip movement of a series of socalled joysticks that can be worked with simultaneously by skilled operators. The machines are equipped with a series of hydraulic pumps, usually two that supply fluid under very high pressure to operate all the heavy cylinder-actuated movable components that do the actual work, and a third pump of much lower specification that supplies pilotcontrol power to reduce the amount of effort needed to operate the controls themselves. Over the years endless improvements have been incorporated into this basic architecture to improve the appeal of these machines, and shift more heavy metal as well as dirt. Recently, these have been mostly in the form of the electronics incorporated, the main goal being greater productivity in terms of fuel burned. But, there have been lots of others, perhaps the ‘zero tail-swing’ concept being one of the most significant. This incorporates the counterweight vital for effective digging within the confines of the slewing frame, thereby allowing use in tightsite usually urban conditions. â–

Visit us at Hall 3 / H3 220

African Review of Business and Technology - September 2013


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Building more power A

consortium led by ACWA Power International (ACWA Power) (, a Saudi electricity and desalinated water producer, and including the Public Investment Corporation (PIC) of South Africa (representing the Government Employees Pension Fund), Lereko Solafrica Investment, Lereko Metier Solafrica Fund 1, Lereko Metier Sustainable Capital Fund, Kurisani Solafrica Investments (representing the National NGO Lovelife) and Solafrica Community Investment Company confirmed the completion of financing and commencement of construction of the Bokpoort Concentrated Solar Power (CSP) Independent Power Project (IPP) located in Northern Cape Province, 600 km south of Johannesburg, in the Republic of South Africa. Forming part of South Africa’s Renewable Energy IPP procurement programme

(REIPP), the 50MWe installed capacity Bokpoort CSP Project is being equipped with the largest thermal storage ever adopted for a solar power plant of this class and capacity to date. The plant thermal storage capacity will be 9.3 hours enabling it to yield a record-high generation in excess of 200 GWh/year well into the night every day throughout the year. This makes CSP the only renewable technology at commercial scale to cover the country's daily peak demand from 5 to 9 PM thereby helping to prevent power black outs. Bokpoort CSP IPP was the only CSP technology project and one of only 19 renewable energy projects selected by the Department of Energy of South Africa from among 79 bids submitted for the second window of the country's REIPP. The construction is being undertaken by a consortium of EPC contractors composed of

TSK Electrónica y Electricidad SA, Acciona Infrastructuras SA, Acciona Ingeniería SA, Sener Ingeniería y Sistemas S.A., all from Spain, and Crowie Concessions (Pty) Limited of South Africa. The construction of the power facility will utilise more than 40 per cent of scope procured locally in South Africa. The operation and maintenance will be undertaken by a consortium led by NOMAC, a subsidiary of ACWA Power and Invest In Africa Energy Services, a South African services provider. The off-taker of the produced electricity will be Eskom Holdings SOC Limited, a government-owned national utility. The Bokpoort CSP IPP has partnered with Investec Bank Limited and Absa Bank Limited as mandated lead arrangers to the project and who together with Old Mutual Specialised Finance (Pty) Ltd are providing the senior debt funding requirements of the project. ■

FIORI PMSA at BAUMA Africa at stands D26 and H5.111 from September 18 to 21


African Review of Business and Technology - September 2013

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Laying the floor for SA’s highest racking S

pecialised industrial flooring experts Concrete Laser Flooring (CLF) has been appointed by construction company Archstone to lay South Africa’s first defined movement (DM) 1 floor at national pharmaceutical group Dischem’s 20,000-sq m distribution centre in Midrand. CLF director Peter Norton explains that a 6,000-sq m section of the total floor area will be placed to DM1 category specifications due to the height of the racking on site, which is the highest in the country at over 20 metres. The remaining floor area is being laid to FM2 special category specifications. This is even flatter than FM2 tolerances routinely achieved by CLF. “A DM1 floor is a specialised high tolerance floor for flatness in high racking areas. The

CLF pouring a second section of floor

racking at the Dischem distribution centre will extend to over 20 metres in certain areas therefore requiring the floor to be super flat in order to avoid fork lifts and reach trucks from excessive rocking when moving in between the aisles,” he said.

There are essentially two methods for defining floor flatness requirements, which are determined by dividing floors into two areas, namely free movement areas (FM) and defined movement areas (DM). “The FM criteria is where trucks operate at low level when moving, such as marshalling areas, block stacking areas and aisles greater than 2.8 metres wide. DM areas refer to systems where the trucks are constrained to defined, fixed paths such as very narrow aisle (VNA),” explained Norton. The floor at Dischem contains CLF steel fibre reinforcement, which is added to the ready mix concrete before placement. The DM 1 portion of the floor is levelled by CLF’s laser screed machines and completed by hand. ■

African Review of Business and Technology - September 2013


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Access for agriculture S

ince its official opening two years ago by the former President Mwai Kibaki, the 100 km Dundori-Ol Kalou-Njabini road in Kenya’s Nyandarua County has opened up the previous hinterland, creating opportunities in agriculture, transport and other sectors. Constructed by the Chinese company China Wu Yi with funding from the Government of Kenya, BADEA/OPEC/Saudi Fund, the US$400mn road took three years to complete, inspiring hope to thousands of farmers whose produce would go to waste due to inaccessible rural roads. “The road has been a blessing to us. We can now increase acreage under potatoes and vegetables as we are assured to quick access to the market. The road has also boosted our bargaining power as we can now negotiate with a large number of prospective buyers who come directly to our farms,” observed Peter Kuria, an elderly farmer from Machinery in Kipipiri division.


With the arrival of agribusiness, investors has seen the escalation in land prices

Observing progress through improved links Kuria, who has lived in the area for almost 50 years, remembers the tribulations local farmers suffered at the hands of brokers before the new road. “We would literally sell our potatoes at low prices to the few buyers courageous enough to tackle the muddy slippery roads to get to our farms. On other occasions, we had to pour off our milk especially in the long rains period due to lack of market,” he said. During that time, an extended bag of potatoes

African Review of Business and Technology - September 2013

would be bought at as little as Ksh 300 (US$3), with a litre of milk farm-gate price at just Ksh 6 (US$0.06). Nowadays, the prices of these commodities have shot by over five times as farmers have a leeway in the pricing of their produce. The road cuts across Dundori, Tumaini, Ol Kalou, Wanjohi and Miharati in Nyandarua Central and Kipipiri districts, passing through Mawingu, Ndunyu Njeru and Engineer in North Kinangop. These townships are tacked away in previously

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Roads inaccessible areas. It ends at Njabi-ini Trading Centre in South Kinangop to link up with the old tarmac that runs from Fly Over area on the NairobiNakuru Highway. Nyandarua County is well endowed with good weather and supplies different major urban centres with milk, potatoes, cabbages, kales and maize. In one survey done a few years back, it was found that at least 40 lorries leave the county every day transporting potatoes to fast food outlets in Nairobi. A smaller number also leave for Nyeri, Nakuru and Karatina on a daily basis. “Transporting potatoes to Nairobi has become easier with the new road which has sliced the distance by almost 100 km- cutting on fuel consumption and boosting our profits. With the high quality of tarmacking , vehicle breakdown problems have been few along the road,” stated David Kamau, a lorry owner and potato transport who makes at least three trips to Nairobi’s Wakulima Market on weekly basis. Horticulture has also become a major beneficiary with the development of the road. “Today, the Ol Kalou – Njabini section of the road is punctuated by numerous greenhouses –indicative of the fledging flower and vegetable industry. Ready access

to Nairobi by road and even international markets had attracted agribusiness investors to seek fortunes in this area”, noted Peter Kiragu, a local administrator in the area. With the arrival of agribusiness, investors has seen the escalation in land prices. Before the road construction, an acre of land would fetch Ksh 80,000 (US$1,000). Today, a similar piece sells at Ksh 350,000 (US$4,000) and above. "Everything here has changed. Land buyers have been arriving in droves from Nairobi, Nyeri and Nakuru all for a small chunk of the prime land," said farmer Njeri Muchunu of Gwa Kiongo Trading Centre, overlooking the scenic Nyandundo Hill. New industries along the route such as Midlands Potato Factory in Kinangop have invested heavily in value-addition of agricultural produce for the local and international markets. The facility which has a cooler that can keep potatoes fresh for up to three years and a


processing factory will enable the farmers to collect and store produce, then release it to the market as demand dictates- throughout the year. The facility provides long-term storage for up to 6,000 tonnes of potatoes and is the only one of its kind in East Africa. Midland Limited currently has about US$8.2mn in assets after raising funds through the sale of shares to local farmers and other investors in the last 8 years. It is expected to earn local farmers over US$2.3mn per season. About 1,000 farmers have been contracted and are being supported with seeds, agronomy and deliver the produce directly to the factory. Carrots, tomatoes, French beans and snow peas are other pricey but perishable vegetables produced within the Nyandarua County and can be value added before reaching the market. . This facility is expected to directly benefit 300 households another estimated 250,000 people through direct incomes and improved lifestyles due to ready market for their produce. Farmers are enthusiastic that the tarmacking of the Ol joro orok- Dundori roads expected to start soon will further open up the agricultural-rich country and helping in the fight against rural poverty. ■ Mwangi Mumero

Visit us at

September 18–21, Johannesburg

Stand A49 External Area

African Review of Business and Technology - September 2013


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Materials to use for shack conversion Improving the living conditions of residents of informal settlements, after donating PVC building pipes and fittings


he test phase of the Kayamandi project - the first-ever shack-tohouse conversion project in Kayamandi, in South Africa’s Western Cape - involved the conversion of a 23-sq m wooden shack into a solid 46-sq m double-storey home, made entirely from 'sand bag' eco bricks built by 16 'off-the-street Kayamandi residents' who were trained and supervised by an engineer from the Africa Responds Clearly Eco Homes team. The project's test subject Norie Lungisa, who lived in the cramped and uncomfortable conditions of her shack with her two children for more than ten years, is delighted with her new and improved eco brick home. Cape Town-based construction materials supplier PennyPinchers approached 16 of its most trusted suppliers, including DPI Plastics, to assist the Kayamandi project with various donations. As a socially responsible corporate citizen, DPI Plastics places a strong emphasis on

Actis’ US$250m Garden City development underway


onstruction at Garden City, Nairobi’s flagship retail, residential and commercial property development, was offically begun rceently, at a celebration ceremony in the presence of over 100 distinguished guests, including the Governor of Nairobi, Dr Evans Kidero. Developed by Actis, the pan emerging markets investor responsible for the Junction Mall and Nairobi Business Park, Garden City is set to become a spectacular destination for Kenyans to live work and play in a safe, stylish and green environment. The A-grade standard Garden City will house a 50,000 square metre retail centre, over 420 apartments and town houses, commercial offices and a stunning three acre central park open to all. The first phase of development, opening for business in late 2014, will bring 33,000 square metres of prime retail space to the city. Garden City will be home to over 100 major local and international retail brands, many of them opening their flagship stores in Kenya for the first time. Nakumatt and Game have already signed up as the anchor tenants. In this initial phase the developers will also make 80 desirable residential apartments and houses available for purchase. Michael Turner, MD of Actis East Africa, said, “The development will provide residents, professionals, visitors and shoppers with an unrivalled blend of leisure, shopping and residential facilities, all set within a beautiful landscaped environment. I am also proud that Garden City will be the first LEED (Leadership in Energy and Environmental Design) certified retail mall in East Africa, translating into lower water and electricity bills.”


African Review of Business and Technology - September 2013

supporting community development projects, notes the company's marketing manager Martine Goodchild. She said, "DPI Plastics is committed to supporting projects that aim to uplift the living standards of fellow South Africans, especially with regards to adequate housing. The Kayamandi project supports DPI Plastics' vision of building a better tomorrow, not only by providing residents with better housing facilities, but also by creating employment and skills development opportunities for locals. We also encourage the use of ‘green’ building materials which aim for energy efficiency within the home.” Africa Responds Clearly Eco Homes spokesman Grahame Tomes highlighted the fact that the new eco home is comprised of two upstairs bedrooms , in addition to an open plan lounge, dining and kitchen area and a bathroom. Tomes explained that the Kayamandi eco house is built utilising the National Home Builders Registration Council (NHBRC)certified eco brick/eco beam building system, which employs eco bricks and eco beams that are plastered and painted. "All eco brick houses are built with eco bricks that are 300mm x 300mm in size. The net result of such wide bricks is a home which is cool in summer and warm in winter." According to Tomes, eco brick homes address a number of serious challenges that are currently facing the South African affordable housing industry. "The 300mm thick walls provide a natural barrier to the harsh South African sun – even in temperatures exceeding 40°C. The issues of rising damp, rain and even flooding are entirely eliminated with eco brick houses, as water cannot rise through sand. Instead, it is forced back downwards into the earth." ■

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A system for advanced use of paint B

osch Power Tools has eliminated the need for time-consuming paint brushes and rollers in housing applications, through its advanced PFS 105E WALLPaint system for local markets. Bosch Power Tools SA senior brand manager Juergen Lauer noted that the PFS 105E WALLPaint system enables the user to swiftly and efficiently apply an even coat of latex or emulsion paint to all textured walls and hard-toreach areas such as corners and edges. "The Bosch PFS 105E system puts an end to the awkward process of using paint brushes in inaccessible corners, thanks to its 3.4-metre hose, which enables greater freedom of movement between the pump station and the spray head." The Bosch PFS 105E is powered by a 375 W motor and is capable of delivering 350 g/min of paint, which is stored within the system's onelitre container, added Lauer. "The one-litre paint container enables the user to apply up to eight square metres per tank, which substantially improves turnaround times. The paint tank also comes standard with two paper funnels that minimise the risk of spillage when pouring." Lauer revealed that Bosch's patented 'SprayControl' technology ensures that the emulsion paint or latex paint is distributed evenly and consistently through the spray head. "This technology also eliminates unwanted spray mist through constant paint atomisation, which is a major personal health and environmental advantage too," he said. According to Lauer, the EasyJet airflow nozzle on the Bosch PFS 105E system enables the user to adjust the spray to suit various applications. "The EasyJet nozzle can be adjusted to each task by turning it manually. The appropriate air flow can be individually controlled and is kept constant electronically, allowing for compact and wide jet options for vertical and horizontal spraying. The Bosch PFS 105E system is ideally suited to both indoor and outdoor painting applications." â–

The-Bosch-PFS 105E wallpaint system is powered by a 375 W motor

African Review of Business and Technology - September 2013


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Magni joins forces with JCB News that Italy’s Magni Telescopic Handlers has now linked up with JCB signals the further expansion of its range and its distribution network


agni Telescopic Handlers has signed a major supply agreement with JC Bamford (JCB) excavators to equip its RTH range with new JCB Ecomax Tier 4i engines. Magni’s rotating machine range complements JCB’s range of fixed boom machines. The deal is beneficial for both companies as Magni will now be able to access the JCB dealer network more easily and rely on an efficient and widespread worldwide distribution network. The JCB dealer network, meanwhile, has now been able to complete its range of telescopic fixed boom machines for construction with a range of high quality rotating machines. Magni, which is based in Castelfranco Emilia, near Modena, Italy, has two main product lines, the RTH range (comprising seven rotating telehandler models) and the HTH range (with three heavy duty machines for the mining, oil and gas and heavy industry). The latest generation of Magni’s RTH range are equipped with JCM or Daimler Mercedes Benz engines. They have electronically controlled Bosch Rexroth transmission, enabling a road speed of 40 km/h and reducing fuel consumption by 10 to 15 per cent. All the models in Magni's rotating range are assembled on two basic chassis models. They feature a rigid structure that prevents the frame members from twisting even when subjected


Magni’s factory in Castelfranco Emilia, Italy

to considerable stress and increases the stability of the machine. Magni's new patented stabilising system features outriggers that no longer overlap and connect to the frame ends but are on the same axis. This allows them to retract into the frame structure, thereby lengthening the wheelbase of the machine. The boom is made of high tension steel and is equipped with an exclusive, patented hydraulic circuit at the end of the boom. Magni’s HTH range is equipped with Euro 3B Daimler Mercedes Benz engines from 129 KW (176 hp) to 240 KW (320 hp). Like the RTH range, the HTH range is equipped with Bosch Rexroth transmission. Thanks to strong torque, the HTH range is able to overcome slopes with a gradient which can

African Review of Business and Technology - September 2013

vary, depending on the model, from 30 per cent to the 58 per cent. Magni Telescopic Handlers has also developed two special machine ranges. Firstly, the Boat Eagle 509 and 512 are two nautical handling systems that are able to handle and store boats up to 10 metres in length in dry dock. Secondy, the Rickilif 13-, 15- and 18-metre models are designed for agriculture, from pollination to harvesting. To assist the JCB dealer network in Belgium, Luxemburg, The Netherlands and Germany Magni has also founded a new company, Magni Sales & Parts Maastricht, based in the Netherlands. This will be able to provide fast technical assistance and spare parts to JCB dealers across the region. ■

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Pipe threading made easy Dowson and Dobson’s Johan van Rensburg explains how to rethread a pipe in five straightforward steps


pipe can be rethreaded in five simple steps using a power threading tool like the Ridgid 690. Johan Janse van Rensburg is sales manager for advanced industrial product and after sales service solutions provider, Dowson and Dobson, whose range includes the Ridgid 690. According to Van Rensburg, a pipe can be fully threaded within five minutes when following these five steps.

support arm is locked into position. It must be connected in a horizontal position. Step 3: The die head size is then chosen from the following range of sizes ½”, ¾”, 1”, 1 ¼”, 1 ½”, 2”.

According to Van Rensburg, the operator can oil the threads while the machine is running. There is no need to hold the machine. With the support arm in place, the 690 will feed itself until it reaches the strong arm. The Ridgid 690 power threading tool also comes standard with a safety switch on the side of the machine, he added.

Step 1: First of all, the pipe requires a 90 degree cut-off, using a number 2-A pipe cutter, which will give the pipe a smooth and clean cut. After the pipe has been cut – no reaming of the pipe is necessary which is an advantage.

Step 2: Once the pipe has been cut to 90 degrees, the support arm is fitted onto the pipe. The support arm is fitted with the strong threaded bar to ensure that the


Step 4: The die head is then inserted and locked into the machine, before the machine is inserted onto the support arm. Van Rensburg said that utilising the support arm is vital when using the Ridgid 690 power threading tool. “This is essential, due to the fact that the machine is strong enough to lift the operator up and cause serious injury if it catches onto the pipe,” he said. “There are also additional safety factors which should be taken into account. For example, the user should always wear gloves, and should always ensure that there is oil on the threads to ensure a smoother cut.”

African Review of Business and Technology - September 2013

Step 5: When everything is in place, the tool can be started and the threading can begin with a push onto the pipe. The user does not have to file the edges because the die head has a taper thread, thereby allowing for quick threading of a pipe that is up to 2” in diameter. "The Ridgid 690 power threading tool is lightweight and compact,” said Van Rensburg. “This ultimately ensures greater ease of transportation and improves utilisation of space, which is becoming increasingly important in a number of professional and on site applications." ■

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bauma Africa

International support for inaugural bauma Africa Looking ahead to a key event in the calendar for all stakeholders - investors, manufacturers, operators and services firms - in African construction and mining


he first bauma Africa, which takes place 18-21 September 2013 in Johannesburg, South Africa, is directed primarily at construction markets in SubSaharan Africa. It is an excellent opportunity for the many machinery enterprises exhibiting a broad spectrum of specialist equipment, and showcasing new and innovative ideas suitable for Southern African markets. More than 500 exhibitors and 15,000 visitors from the African construction and mining sectors will be present. The trade fair covers more than 60,000 square metres (sq m) of exhibition space. Exhibitors from 34 countries will be participating in the trade fair, with companies at international pavilions representing Austria, China, Finland, Germany, Great Britain, Italy, Korea, Northern Ireland and Spain. Elaine Crewe, chief executive officer of Messe MĂźnchen International (MMI) South Africa, says that "as investors and businesses look towards developing countries for new growth, the mining and construction industries are set to profit from this move. The need for infrastructure present a growing opportunity for those present in these sectors to provide services and products throughout developing countries and benefit from this burgeoning growth.

The growing pool of international entrants into the African market are a telling sign of just how important Africa is becoming and the need for specialised players in the industry, we trust that bauma Africa will highlight new products in these sectors.� International interest in inaugural event The premiere of bauma Africa is attracting great interest in the sector, both at home and abroad: the South African Construction and Mining Equipment Suppliers' Association (CONMESA) expressly welcomes the premiere of bauma Africa, the International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines and Construction Vehicles. A range of other national and international associations and organisations are also supporting the new event. CONMESA was founded in 1992 and it currently has 20 members who represent the most important local and international

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bauma Africa

companies in the construction and mining industry in South Africa. Marc Carter, president of CONMESA, said, "The Construction and Mining Equipment Suppliers' Association fully supports the initiative of Messe München International in establishing bauma Africa as an international trade show which purely focuses on the construction equipment, construction materials machinery and mining machinery sector. This kind of show, with its primary focus on our business environment, is currently missing on the African continent and especially in Southern Africa. We are convinced that bauma Africa will bring considerable value to our members, to the African construction industry and to the worldwide construction machinery industry." Also among the international supporters of bauma Africa are the Association of Equipment Manufacturers (AEM), the Asociación Española de Fabricantes Exportadores de Maquinaria para Construcción (ANMOPYC), the China Construction Machinery Industry Association (CCMA), the China Council for the Promotion of International Trade - Machinery Sub-

Council (CCPIT-MSC), the Construction Equipment Association (CEA), the Japan Construction Equipment Manufacturers Association (CEMA), the China Construction Machinery Co., Ltd. (CNCMC), the Costruttori Macchine Movimento Terra (COMAMOTER), the Japan Construction Mechanization Association (JCMA), the Korea Construction Equipment Manufacturers Association (KOCEMA), the Unione Costruttori MacchineEdili, Stradali, Minerarie ed Affini (UCoMESA) and the Unione Nazionale Aziende Construction Equipment & Attachments (UNACEA). In addition, the German Engineering Federation, the VDMA (Verband Deutscher Maschinen- und Anlagenbau), is making an application to the Ministry of Economic Affairs for it to back an official German pavilion at bauma Africa. Commenting on the involvement of the association, Johann Sailer, president of the VDMA Construction Machinery and Building Materials Machinery Association and President of the Committee for the European Construction Equipment (CECE), said: "The German industry very much welcomes the initiative of Messe München in

Hyundai equipment, on show at bauma Africa, is designed to work in any terrain


African Review of Business and Technology - September 2013

establishing a new sector platform in subSaharan Africa. As a trade association within the VDMA we have been a partner of Messe München for almost 40 years, supporting bauma. We want the brand and the concept of bauma to become as well-established in Johannesburg as it already is in other locations around the world." At the show, and on their stands Major players like Atlas Copco, ELB Equipment, Goscor Group, Herrenknecht, Hyundai, LiuGong, Pilot Crushtec, Putzmeister, Sany, Shantui, Sumitomo, Terex Finlay, Vermeer, and XCMG are showcasing solutions. Retailers and, thus, sales partners of international brands such as Bobcat, Casagrande, Doosan, Fiori, Genie, Kawasaki and Mitsubishi will also be represented. Gary Bell, chief executive at Bell Equipment, sees bauma Africa as a real opportunity for his company. He said, "An international exhibition of this stature in sub-Saharan Africa has been long awaited and we at Bell Equipment look forward to supporting an event which will have positive spin-offs for the region, the construction industry and our customers." Stefanie Herr, head of corporate marketing at Wacker Neuson, added, "Wacker Neuson has long had its own sales affiliate in South Africa. But we never had the chance of presenting the broad range of products and services to a large number of visitors there. We are looking forward to doing that now and meeting customers from the other countries of the African continent." Exhibitors also include Bauer Maschinen, which is looking forward to welcoming large numbers of visitors to its Stand E 20 in the outdoor area. The selection of equipment shown by Bauer will demonstrate the competence of the Bauer companies in supplying appropriate equipment for bored piles, water well drilling and mining activities as significant activities of the construction industry are expected in these fields. And the Wirtgen Group will be there, showcasing a representative cross-section of its road and mineral technologies product portfolio on an area of around 800 sq m. The exhibits will feature innovative technologies from the brands Wirtgen, Vögele, Hamm, Kleemann and Ciber - specially tailored to the needs of the African market. HPE Africa, the sole distributor of Hyundai earthmoving equipment in Southern Africa, will be there - and general manager Neil Sauls affirms that the company will be exhibiting and demonstrating the capabilities of a total of 14 Hyundai machines, including; mini excavators, tracked excavators, wheeled excavators, backhoe loaders, wheel loaders and skid steer loaders.

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bauma Africa

"Exhibiting at a high profile event such as bauma will expose HPE Africa and its product line to some of the biggest names and decision makers in the highly lucrative African construction and mining industries - which both have considerable potential for sustained growth," he explained. Another exhibitor, the Wirtgen Group has been operating on the African market in the fields of road construction and mining for many years now. With its well-developed service network, the local Wirtgen Group sales and service company, Wirtgen South Africa, not only provides innovative machines but also guarantees short routes to local contacts and fast, reliable response times – for instance, when providing technical support right on the job site or workshop services. The ingenious logistics concept ensures the constant availability of original spare parts. What's more, Wirtgen Group experts can support customers at any time with on-site applications advice tailored to their needs. Local sessions for international industry This inaugural event, taking place at Johannesburg’s Gallagher Convention Centre, has attracted both local and international attention, including that of companies carrying out the supporting programme for the event. One session of the supporting programme will be presented by Dr Chris Hinde; a half-day seminar entitled ‘Mining Insight: The Industry Explained’ providing a comprehensive and straightforward explanation on how the global mining industry works. The seminar is aimed at individuals working within associated sectors including equipment manufacturers, service companies, legal firms

Bauer’s G 20 H. - a compact, highly versatile rotary drilling rig

and the finance industry. Also running alongside bauma Africa is the Construction Equipment Conference ConECo - organised by the Contractors Plant Hire Association (CPHA). The conference will discuss industry-related topics such as risk management, security and compliance, legislation, the economy, the international viewpoint, new developments and alternative financing. The ‘Working at Heights & Lifting Operations Conference’ hosted by the Institute for International Research (IRR), endorsed by the Association of Mine Resident Engineers and the South African Colliery Engineers Association, will bring together leading safety experts from the industry to address current issues and developments in managing risk when working at heights or during lift operations, with a firm emphasis

on best practice and safety excellence. Presentations will be made by Phakamisa Safety Consultants, Morris Cranes SA, Immortal Health & Safety, Johnson Cranes, Anglo American and Buildsafe. Following the show MMI has in fact formed a joint venture with the AEM called bC Expo South Africa (Pty) Ltd, to arrange events in the region following bauma Africa. Eugen Egetenmeir, managing director of Messe MĂźnchen, is convinced that this collaboration will give bauma Africa added potential. He said, “Our colleagues at AEM have been supporting us in organising the premiere of bauma Africa. We are very pleased that this spirit of cooperation is reflected by the fact that our two companies have founded this joint venture. I am sure that this will allow us to recruit even more exhibitors from North America for the fair in Johannesburg.â€? Dennis Slater, president of AEM, said, “AEM is pleased to take this next step in its relationship with Messe MĂźnchen. Our first joint venture, bC India, has developed as a model of industry efficiency and effective competition in the global marketplace, and we now look forward to a natural extension of our cooperation. Africa has great opportunities for economic growth. Recognising this, AEM seeks to support and promote its member companies in North America through the bauma Africa 2013 launch.â€? Messe MĂźnchen and AEM have already collaborated in the successful bauma ConExpo Show – bC India. Its premiere in 2011 occupied 88,000 sq m of exhibition space. When the fair was last held in February 2013, the amount of exhibition space increased to an impressive 150,000 sq m. â–


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African Review of Business and Technology - September 2013

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bauma Africa

Brigade showcases smarter safety Manoeuvring safety will take centre stage at bauma Africa as Brigade Electronics showcases a diverse range of its most durable radar and camera systems - as well as its signature broadband sound alarm, to the African mining, construction and haulage markets – while launching its Smarteye 360° camera system to an international audience. Making its debut in the inaugural show’s ‘UK Pavilion’, Smarteye is the first in a new generation of intelligent vehicle safety solutions: a camera system that eradicates blind spots and dramatically reduces collisions and driver information overload thanks to a single bird’s-eye view of the entire vehicle and its immediate surroundings. Comprising four cameras placed around the vehicle, Smarteye technology works by ‘stitching’ each image together to provide a complete and accurate all-round view, as if from above. Powered by software from ASL Technology, a specialist software developer of video image processing and other products, each camera’s ultra-wide angle lens renders a

realistic, light-balanced video image displayed in real time on a high-definition cab monitor– with programmable options to highlight areas of greatest risk. Visitors to the Brigade stand can see the Smarteye system in action as part of a broader product showcase, which comprises its Backeye range of heavy duty cameras and monitors, its new-to-market digital wireless system, and a selection of its popular Backsense radar products: Xtreme, WorkZone, and WorkSight. Brigade’s bbs-tek white sound reversing alarm will also be on display – which continues to earn international industry plaudits for its patented directional sound that only grabs attention in the immediate vicinity of danger. Karel De Bont, Brigade Electronics’ South African director, said, “Equipment owners and operators across Africa see safety as an absolute necessity, in all industries. That’s why Brigade continues to focus on providing solutions that surpass industry standards and deliver in even the most challenging natural environments.”

Sandvik’s new cone crusher The new generation of compact cone crusher from Sandvik provides customers with optimum performance and good cubical shape, whilst ensuring the lowest operating cost per ton for a wide range of materials and applications. The all new patented Sandvik CH550 is based on the proven Hydrocone design, with the CH550 combining the ability to produce excellent shaped products, in fewer crushing stages, thereby making it adaptable to ever-changing customer requirements. The new CH550 crusher from Sandvik Construction has been developed in response to customer demands, building on the rock solid foundation of the Hydrocone concept. This new range of crushers establishes Sandvik as market leaders in the design and development of cone crushers that have been developed to deliver exceptional rates of productivity and efficiency. The CH550 crusher has the ability to be configured for either secondary or tertiary crusher applications. It also has a wide performance range and with its unique, patented design the CH550 provides customers with unparalleled adaptability and flexibility.

TWS meets new markets in Jo’burg Terex Washing Systems (TWS) will be present at bauma Africa in Johannesburg - reflecting the rising importance of Africa in construction and mining to its business model. TWS is attending the event following increased activity and enquiries in the African market. TWS company expects bauma Africa to provide an excellent platform and opportunity for interaction with customers, to enable it to meet their specific washing


needs. The company will present its portfolio with a key dealer in this market, ELB Equipment, in addition to its presence with Invest NI. You will find TWS with ELB at stand number D 36 and D 40. The company can also be found at the Invest NI stand at H3 241. Terex Washing Systems’ director, and the company’s marketing manager, will be at hand to answer all washing queries.

African Review of Business and Technology - September 2013

PowerScreen mobile equipment on show


owerscreen, which provides mobile crushing and screening equipment, will display the XH320X impact crusher and Warrior 800 screen at the inaugural bauma Africa event in conjunction with South African Distributor ELB Equipment on booth D 36 and D 40. On the stand will be two well-established Powerscreen machines: the XH320X and the Warrior 800. Commenting on the forthcoming line up at bauma Africa, Damian Power, global product line director, said, “Powerscreen is eagerly awaiting for the first bauma Africa as Africa is an important market for us. The machines on display demonstrate the versatility of the Powerscreen offering and demonstrate how we meet the needs of our customers through innovation and investment in focused research and development.” The XH320X is a mid-sized horizontal impact crusher designed to offer operators and contractors excellent reduction and high consistency of product shape for performance in quarry and recycling applications. With tracked mobility, the plant is capable of working in the most demanding environments and features rapid set-up time, fuel efficient direct drive system and excellent output potential of up to 320 tph (352 US tph). The Warrior 800 is a multi-purpose, heavy duty incline 2-deck screen, capable of stockpiling, 3-way splitting or scalping before and after the crushing units. The screenbox will accept a wide variety of screen media making it suitable for a range of applications including topsoil, recycling, construction and demolition waste, sand, gravel and aggregates. The machine is available in either tracked or wheeled mobile versions, with both configurations offering a compact transport footprint with a width of 2.5 metres (8’ -2”), reducing transport permit requirements. In conjunction with ELB, the construction segment of Terex will also be showing, for the first time in Africa, its new TLB890 backhoe loader. Key to the TLB890’s powerful performance is its new highpressure hydraulic system, high-force cylinders and new boom design. The machine will be available to the African market following the show.

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bauma Africa

Doosan Portable Power and Montabert present products for Africa


oosan International South Africa is presenting a selection of products from Doosan Portable Power and Montabert. Doosan Portable Power manufactures portable compressors and mobile lighting systems for the African market. The portable compressor range is available with free air deliveries from two to 45 cubic metres (cu m) per minute and operating pressures from seven to 35 bar. At bauma Africa, visitors will be able to see the 7/41 compressor, which supplies 4.0 cu m per minute of compressed air at seven bar and is one of a number of models that can be equipped with an integral 6.5 kVA. Alongside the 7/41 compressor will be the new 50 Hz LSC (LightSource Compact) portable light tower, designed specifically for use in African markets. Key features of the display of equipment from hydraulic equipment manufacturer Montabert will be a range of hydraulic breakers and hydraulic drifters for drilling applications. The focus will be on the Silver Clip range of light hydraulic breakers for carriers ranging from 700kg to seven tonnes. Demonstrating the easy to use, high performance and reduced maintenance design of the Silver Clip range, the SC36 hydraulic breaker on the stand is intended for use on carriers with weights

The Doosan Portable Power 7/41 compressor

from four to 10 tonnes. Doosan International South Africa will be exhibiting at stand H5 301.

Innovative concrete equipment on display Pan Mixers South Africa (PMSA) will be exhibiting its IMER concrete batching and mixing equipment technology at bauma Africa. The company was officially named as the South African distributor for Europe-based IMER in July 2013. PMSA marketing and sales manager Quintin Booysen said, “The outdoor stand has been designed to be a demonstration area to showcase the capabilities of a comprehensive range of PMSA machinery, including the Fiori self-loading concrete batching vehicle, the automated RE600 concrete brick and blockmaking machines, in addition to a wide range of HTC floor grinding and polishing machinery and accessories with live polishing and grinding demonstration.


African Review of Business and Technology - September 2013

PMSA will also host all of its international suppliers at its indoor stand, in order to provide expert advice and insight to visiting guests,” he added. Looking to the future, Booysen believes that there will be a significant increase in demand for PMSA’s concrete equipment and technology across Sub-Saharan Africa, as trade and investment increases across Africa. “With strong economic growth forecast for Sub-Saharan Africa in particular, PMSA plans to be at the grassroots of that development by supplying all associated concrete equipment, technology and solutions to the various projects through the PMSA Group of Companies,” he added. PMSA will be displaying its comprehensive product range at D 26 and H5 111.

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Endress brings power to Africa Endress manufactures mobile and stationary power generation units from 2-2,500 kVA in Germany. With its Duplex technology, these generators are able to run different types of load like sensitive consumers and heavy load appliances at the same time. Endress products have been designed for the tough everyday use in rough operation. The company provides ‘water-proof’ generators with IP54 protection, so no matter which conditions you face – ENDRESS will

always be the right choice for your power supply. The generators can be monitored and controlled over the internet using the ERMA monitoring software on any web-enabled device. Besides the construction and rental industry, Endress is a well-known supplier of generators to the fire and rescue business and military applications. Visit, or find Endress in the German pavillion at H5 178

Linden Comansa to exhibit 21LC290 tower crane


panish tower crane manufacturer Linden Comansa and its South African dealer Tower Crane Services will co-exhibit together. The companies will erect a 21LC290 flattop crane at their stand, with a maximum load capacity of 12 tonnes and at a height under hook of 15.1 metres. The tower crane belongs to the LC2100 Series, which, having recently been reviewed

by Linden Comansa’s research and development team, will feature new improvements at bauma, including frequency control on the slewing movement; electrical systems gathered in one single cabinet; and the latest version of the ‘Cab Platform + Electrical Cabinet’ set, with easy installation to the slewing part for fast assembly.







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African Review of Business and Technology - September 2013


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Telestack at bauma Africa Telestack has announced it will showcase its Mobile Radial Telescopic conveyors at bauma Africa at stand D 40 together with its partners ELB Equipment . Telestack have a number of these units available in Africa which are used for stockpiling/reclaiming in the pit or port and loading vessels at inland river terminals/sea ports. The equipment is suitable for handling a wide range of materials from heavy ores to aggregates to coal, grain, fertiliser and biomass. These locations do not have adequate infrastructure to cost effectively transport the commodity from pit to an inland river terminal/sea port. Miners have to invest a lot in infrastructure to get the material to the port and then load it onto the ship. Telestack has designed and implemented a number of rapid deployment solutions using a range of self powered mobile conveyors and hopper/feeders that allows miners at low costs to rapidly stack and reclaim material at the mine. Telestack stated that their new solutions are designed to ensure that the customer can very quickly be generating The Mobile Radial Telescopic conveyors can handle materials including coal, grain, fertiliser and biomass revenue streams.

HPE Africa to display comprehensive product range


PE Africa, sole distributor of Hyundai earthmoving equipment in Southern Africa, will be exhibiting machines including mini, tracked and wheeled excavators alongside backhoe, wheel and skid steer The Hyundai 220LC-9 hybrid excavator loaders. HPE Africa general manager Neil Sauls said, “Exhibiting at a high profile event such as bauma will expose HPE Africa and its product line to some of the biggest names and decision-makers in the highly lucrative African construction and mining industries – which both have considerable potential for sustained growth.” HPE will also be demonstrating its range of Astra articulated dump trucks (ADTs) and rigid dump trucks (RDTs), as well as McCloskey jaw crushers and screens. “I am confident that HPE Africa can enter new markets in East and West Africa, while consolidating on its established presence in Southern Africa - especially within the rapidly developing Zambian and Zimbabwean mining sectors,” Sauls concluded. HPE Africa will be exhibiting at stand D 21.

Debut for Bell B60D The inaugural bauma Africa is on the doorstep of South African heavy equipment manufacturer Bell Equipment, and the company plans to make a strong impact locally by Bell’s 60-tonne articulated showcasing its strides in dump truck, the B60D innovation with the debut of its 60-tonne articulated dump truck, the B60D. Following in the footsteps of the company's flagship B50D, which was released for export at bauma Munich in 2004, the B60D opens up opportunities for the company in a domain that was previously only contested by rigid haulers. The B60D has full articulation and oscillation steering but differs from a traditional ADT in that it has two driven axles, giving it 4x4 capability. With a 60-tonne payload the company believes it will be able to move considerably more dirt than a regular ADT, at a lower cost per tonne than comparative rigid haulers. At the same time the truck offers much better off-road capability than a rigid hauler and has the ability to work in worse underfoot conditions to increase days in production. Bell Equipment marketing manager, Stephen Jones said, “We're excited to be able to showcase our cutting-edge products at a show of this magnitude on the African continent. Apart from our B60D, we will also be displaying our new B50D Ejector as well as the E-series ADT and upgraded Fleetm@tic fleet monitoring system, which were very well received at bauma Germany earlier this year.”


African Review of Business and Technology - September 2013

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Shantui to launch new construction machinery

Merlo S.p.A launches DBM range

Shantui Equipment Southern Africa director and vice general manager for Shandong Shantui Construction Machinery Import and Export Co. Ltd., Dylan Chicken, has announced that new construction products will be launched by the company at bauma Africa. At the exhibition, which will welcome more than 500 exhibitors and 15,000 visitors from the construction and mining sectors, Shantui will be demonstrating a range of new machinery. New products will include the Shantui SD32W bulldozer and Shantui SD22W bulldozer along with the Shantui SG21-3 motor grader. “Shantui's substantial 800-square metre exhibition area will see the launch of a number of the company's latest product and network developments,” Chicken commented. Shandong Shantui Construction Machinery Import & Export is a subsidiary of Shantui Construction Machinery, specialising in the import and export of Shantui parts and products.

TMS expands spare parts database Technical Mechanical Services (TMS), a supplier of spare parts for mining operations, has expanded worldwide, with a portfolio of 42mn part-numbers. The company supplies transmission systems, engines, filters and seals for mining, drilling machines, cranes, forklifts and tracks. “We have been around for almost 20 years. The African side of the operation is wellestablished and I have been travelling there since 1997,’’ explained managing director John Rogerson. “We started by supplying the gold mines in Ghana, Copper in Zambia, Bauxite in Sierra Leone and Diamonds in Botswana, and we continue to capitalise on the wealth of opportunities Africa Holds.’’ TMS, which has its headquarters in Liege, Belgium, is able to use substantial facilities in the region, making it an ideal location, Rogerson said.

“All parts are funnelled through our Belgium warehouse and shipped directly to the end user wherever they happen to be,“ he stated. “We have invested a lot in our supplier accessibility and if one doesn’t have the part, we have another that probably does.’’ TMS has an IT system, TMS Soft, which enables the smooth running of the creation of quotes, stores to be assessed and logistics to be organised, the company said. According to Rogerson, the company is now also a supplier for various industry brands, working alongside MTG, a supplier of GET (Ground Engagement Tools); Berco, which is engaged in all aspects of undercarriages; and Rockmore, which supplies percussive rock drilling tool. ‘’Our five-year plan is to cover Africa in spare parts: that’s the goal and everything we do works towards achieving it,’’ he added.


talian-based Merlo, manufacturer of products for the construction, mining and agricultural sectors, has been recognised as a market leader with its DBM range of selfloading concrete mixers, being among the top players in the telehandlers market. The company produces telehandlers (front loading, with stabilisers and with rotating platform) and concrete mixers (DBM), it said. In the African continent Merlo set-up its first self-loading concrete mixers in 1966 and the last generation of this line-up has fourwheel drive with hydrostatic transmission, portal axles, three-function steering system and large water and fuel tanks ensuring vehicle disengagement on all terrains and longer autonomy. The DBM are particularly appreciated where morphological conditions require versatile, reliable and sturdy off-road vehicles. The telehandlers range is made using more than 50 different models with boom reach from six to 30 metres and capacity from 2.5 to 12 tonnes.

Merlo S.p.A’s telehandlers range is formed of more than 50 different models

African Review of Business and Technology - September 2013


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bauma Africa

Cement mixer trucks from Bonfiglioli


onfiglioli has been designing reliable, tried and tested drum rotation solutions for cement mixer trucks for many years. Earlier this year at bauma Munich, Stefano Baldi, worldwide sales manager at Bonfiglioli Trasmital explained, “The cement mixer truck market has always been an important one for us, and we have always done our best to offer key account customers superbly reliable, high performance solutions. As the result of a co-engineering project with one of our major customers, CIFA-Zoomlion, a world leader in cement mixer trucks, Bonfiglioli is now launching a hybrid system that will change the future of cement mixer drum rotation. We are extremely proud of this new product because we are convinced that electromobility solutions will play a major role in the future of construction site and quarry machines. “We are also delighted that CIFA-ZOOMLION chose us as their partner in this project. It shows that we have the professionalism and competence they need.” The solution designed by Bonfiglioli in conjunction with CIFAZoomlion comprises a gearbox of Bonfiglioli’s historical 500 Series coupled to an AC electric motor that provides normal power and a DC electric motor for emergency use. This new solution not only guarantees greater energy efficiency and reduced fuel consumption, but also helps cut cement mixer truck operating costs (for example by extending service intervals and

making servicing simpler than on hydraulic drive solutions). Performance is improved too: rotation speed control is more accurate, operating noise levels are significantly lower (thanks to the electric motor and the helical tooth profile of the high speed gearbox stage). Finally, functionality remains higher in the event of a failure: the presence of a second, backup DC motor gives reassuring redundancy and eliminates the risks and potentially hazardous situations caused by failures of the drum emptying system (if the drum cannot rotate, the cement can solidify and put the mixer truck out of action). The new Bonfiglioli solution is designed for use with medium to large mixer trucks that have medium to long delivery distances to travel. Drum rotation speed is between 15 and 22 revolutions per minute and capacity between six and 14 cubic metres. To give some basic technical details, the gearbox of the new solution has a reduction ratio of 1:220 (1:2200 in emergency mode) and can transmit a maximum torque of 35,000 Nm (rated torque of 21,500 Nm). The main motor has a power rating of 40 kW, is liquid cooled and has an index of protection of IP66. This new Bonfiglioli solution will be on display at the bauma exhibition, at the Bonfiglioli stand and on a mixer truck displayed directly by CIFA-Zoomlion.

Kobelco Cranes launches new crane Kobelco Cranes, a subsidiary of Kobe Steel, has launched Kobelco BMS1200HD, a new foundation crane. The construction machinery manufacturer, which specialises in crawler cranes, said its stand at bauma Munich had a key focus on new foundation cranes. The Kobelco BMS1200HD crane is equipped with a high-performance engine and the MTU 12V2000 Diesel engine, which has 12 cylinders in V-design and provides 634 kW of rugged rated power at 1,800 revolutions per minute. According to Kobelco, the crane has so far been set up for use on construction and foundation projects outside of the European Union. The crane has been designed for the global foundation industry and is equipped with high performance winches, high line speed, high spooling capacity, high flow hydraulic outlet, the company said. The BMS 1200 HD features KOBELCO’s latest full-colour 12-inch display monitor with touch screen and ISO symbols. Further features include the combination of the moment limiter and the machine condition monitors, providing easy access to lifting information and machine status. The auxiliary sheave has a maximum combined line pull in double rope operation of main winch and auxiliary winch of 319 kN (32.5tf ). The BMS1200HD, successor of the BM1299, can be used on barges and a reduced lifting table for working on barges is also available, Kobelco said.


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bauma Africa

Genie Europe to showcase new products Genie Europe has announced that it will be showcasing its latest offerings at bauma Africa. The company exhibited the Genie S-45 Trax telescopic booms at bauma Munich, which was held in April this year. The Genie S-45 Trax aims to reduce damage to sensitive ground surfaces and is able to drive on almost any surface, with a lift height of 14.2 metres, a vertical reach of 11.2 metres and a gross weight of 7,927kg, Genie Europe said. Genie S-45 Trax telescopic features a patented track design which allows for an independent triangular track at each corner and also incorporates patented active oscillating axles. The tracks are kept in contact with the ground on uneven and undulating surfaces to ensure maximum power, Genie Europe said. “The new Trax models provide increased useability and comfort,� said Scott Kriger, senior product manager at Terex Aerial Work Platforms (AWP).

Genie Europe will be exhibiting its latest offerings at bauma Africa 2013

Ammann launches new roller Ammann has announced the new Rammax 1575 CI trench roller will be manufactured at Langenthal in Switzerland. The previous model, the 1575C, was launched at bauma Munich earlier this year. Since then, the construction equipment


manufacturer has set out safety measures which will apply to the Rammax 1575 CI. Furthermore, compliance with the new standards will ensure that safety requirements have been met, Amman said. The engine offers low fuel consumption,

African Review of Business and Technology - September 2013

which means reduced emissions, the company added. The new articulated trench roller features a water-cooled diesel engine from Yanmar, which is expected to improve reliability and reduce noise.

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Bell delivers E-series equipment to Ballito Crushers Bell Equipment has delivered the first of its new E-series Articulated Dump Trucks to Ballito Crushers in northern KwaZulu-Natal, which is looking forward to using the state-of-the-art technology of the B25E and its many safety features to positively impact their quarry business. Clive Damant, founder of Ballito Crushers said, “We didn’t realise our ADT was the first one to be delivered Grant Barnard (customer support representative, Bell Umhlali) walks Clive in the country; it’s very Damant through the technology and features of his new Bell B25E exciting. We’ve been running old series B20Ds and although we’ve been pleased with their productivity and performance, we have opted for the B25E because of the higher payload and related cost efficiencies. Our new truck is also 6x6 as opposed to the 6x4 B20Ds, which will better suit our quarrying application going forward as we require good traction.” According to Damant the B25E, with its 100 per cent mechanical availability, will be the prime mover of material into the crusher jaw to ensure that the operation runs seamlessly. Ballito Crushers supplies crusher dust, predominantly to the local block yards, 19mm concrete stone, G2 and G5 road gravels as well as G7 natural overburden. The growth in the Ballito area has created a huge demand for material from Ballito Crushers. Already the company has supplied aggregates for the road infrastructure in the Simbithi Eco Estate, Brettonwood and Dunkirk estates as well as parts of the prestigious Zimbali development. “We’ve introduced a new fleet of crushers to increase our production, which currently sits at about 30,000 tons per month. Damant attributes the increase in demand largely to the nearby King Shaka International Airport. The airport has been a magnet to development. There are now four large shopping centres in the Ballito and surrounding areas that have opened in the last 10 years along with industrial and residential development.” To keep pace with development, investment into infrastructure is also taking place with a contract to widen the off-ramps on the N2 highway at Ballito as well as a separate contract to double the existing road through the now bustling coastal town. Meanwhile, complementing the B25E and B20D are two Bell L1506 Wheeled Loaders and a Bell 1430 Excavator, to assist in loading road trucks and overburden respectively. The Bell fleet is fully serviced by Bell Umhlali and Damant comments: "One breakdown has a ripple effect throughout the operation so availability is critical. We’ve never had a problem with downtime because of the good service we receive and that is why we stick with Bell."

African Review of Business and Technology - September 2013


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ETAL moves transformers with Scheuerle InterCombi Egyptian Transportation & Logistics (ETAL) recently transported six transformers from two Red Sea ports to the Giza North Power Station on Scheuerle InterCombi. Due to the precise project planning of ETAL and the safe and reliable equipment of Scheuerle, all obstacles could be mastered and the transport arrived in time at its destination safely. Egyptian Transportation & Logistics (ETAL) transported six transformers from two Red Sea ports to the Giza North Power Station on Scheuerle InterCombi. Due to the precise project planning of ETAL and the safe and reliable equipment of Scheuerle, all obstacles could be mastered and the transport arrived in time at its destination safely. EgyTrans, mother company to ETAL, has provided integrated global transport services and solutions in Egypt since 1973. In addition to transporting cargo of exceptional weight or dimensions, ETAL provides a number of services to its customers and guarantees an in-time transport, even if the circumstances are challenging. In this case they were in fact difficult – a first check proved, that the only way to get the transformers to the job site involved partly barging over the Nile River from the Tibin jetty to the Khatatba temporary jetty and finally transporting them on Scheuerle InterCombi to the job site itself. The six transformers of 146.5 tons each made the transport a tough task, due to the difficult road situations. Especially uneven surfaces challenged the equipment – no problem for the InterCombi with its 650mm axle compensation. The transport started in Sokhna and

Offloading of the transformers at Giza North Power Station

Adabiya Ports on the Red Sea. The first destination was Tibin jetty, where the 7.42 x 4.31 x 5.10 metre-sized transformers were brought to on 14 axle lines of SCHEUERLE InterCombi. At Tibin jetty, the transformers were loaded on a river barge with a crawler crane. The barge moved the transformers up the Nile to Khatatba temporary jetty, an offloading facility near Giza power station, built especially for ETAL. At Khatatba temporary jetty, the transformers were stored and afterwards transported to the Giza North power station site. Regardless uneven roads or extreme temperatures experienced in the desert InterCombi platform trailers have been designed to deal with the challenge of both

Arrival at Tibin jetty on Scheuerle InterCombi


African Review of Business and Technology - September 2013

long-distance transport on the road and special operating conditions. The modular design provides an extensive selection of transportation solutions which are based on two- to eight-axle platform trailers. These can be coupled both longitudinally and laterally. With a 36-ton technical axle load, the InterCombi is suitable for the safe transport of heavy loads and offers sufficient reserves through the robust construction of the frame, also with extreme loads. As an extension of the InterCombi series, the InterCombi PB (Power Booster) is available which is equipped with activatable drive axles and, if required, is driven likewise by a activatable PowerPack Unit (PPU), eg, for gradients without the use of an additional tractor.

Unevenness or extreme temperatures – the SCHEUERLE InterCombi can handle heavy situations without any difficulties

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PowerCurbers 3-D technology Throughout 2013, Power Curbers, Inc has been actively engaged in 3-D technology research for curb machines. The possibility of eliminating the setting of hubs and the labour-intensive setting of stringline will revolutionise curb work. The use of common control systems for graders and curb machines is an advancement of unparallel proportions. The challenges include: ● Data management, which must be fail-safe. When 3-D models are created and the general contractor gives the data disk to the curb contractor after the earth-moving work is completed, the curb contractor must have confidence that the information on the disk is correct. If incorrect information is downloaded into the curb machine and there is a subsequent mistake in the placement of concrete, it is a significant loss.

When curb contractors set stringline, any previous errors become evident. Without setting stringline, you lose the visual control. 3-D technology must allow the curb machine to turn a tight radius, critical in today’s market. With larger pavers used for mainline paving, radii are more sweeping, making it a better fit for 3-D technology. Turning a 2-foot radius in a parking lot with a curb machine is a challenge for 3-D technology. With GPS controls, a goal is to use the same 3-D hardware for earthmoving operations and the curb installation, thus reducing the price.

At Power Curbers, Stephen Bullock reported earlier this year that the company is excited about the technology and its benefits, while identifying and addressing challenges.

Chryso’s sealer for exposed aggregate concrete floors Applicators are constantly looking for solutions that meet the quality criteria of aesthetic concretes. Chryso FiniSol Brut is an essential supplement to the Chryso Deco range, since it offers a perfect finish for exposed aggregate concretes and ensures long-term protection. Chryso FiniSol Brut is designed specially for exposed aggregate concrete works, and has a broad range of properties: ● Protection of the concrete mineral surface finish. ● Application onto exposed aggregate concretes, immediately after washing (fresh and wet). ● Proven protective qualities (stain-proof, abrasion, ageing, surface hardness). Specially formulated in aqueous phase, it protects users and meets the new environmental building quality standards, which require increasingly environmentally friendly products to be used. Using Chryso FiniSol Brut does not alter the appearance of the surface of the concrete. Unlike wetlook protective products, it gives the concrete a perfectly natural aspect, without altering the cement matrix: it is not darkened and the aggregates do not shine.

Goscor set on Subaru engines Goscor Power Products (GPP) is focusing on the renowned Subaru EX–OHC ‘commercial duty’ engine series this year, for new products which will be powered by the EXOverhead cam engine, including water pumps, fertiliser pumps, fire fighting pumps and construction equipment. This 'powerhouse engine' has a superior range of features and benefits when compared with other engines in its class according to GPP national sales manager, Mark Bester.


“The Subaru EX-OHC is an all-purpose engine designed for heavy industrial use like on a construction site and for lighter work as in a domestic drum lawn mower,” he said. Applications include construction, agriculture, general industrial, lawn mowers, go-carts and fire-fighting. “Importantly, unlike other well-known brands, we offer a full three-year warranty on the EX –Engine which is still unmatched in this market,” Bester noted.

African Review of Business and Technology - September 2013

LiuGong and ZF celebrate first JV axle


auma Africa exhibitor LiuGong recently marked the completion of a first prototype JV axle (AP3000) with ZF, which was produced by their new Joint venture company, ZF Liuzhou Axle Co. Ltd. It is not the first time these two parties have worked together to promote the progress of construction industry. In 1995, LiuGong and ZF started their long term relationship by setting up ‘Liuzhou ZF Machinery’ to produce construction transmissions and spare parts. It has been successfully serving joint venture partner LiuGong and third parties with high quality construction machinery transmissions for years. After the continued success of the first JV with ZF, LiuGong and ZF built a new joint venture together last September, focusing on wheel loader axles that are specially tailored for the requirement of developing markets. Located in the same city together with LiuGong, the new ZF Liuzhou Axle Co. Ltd. is targeting an increase in annual volume to more than 30,000 units by 2018. “Liuzhou ZF Machinery has been a win-win example in the industry for years. Today, we come to another milestone with our new JV company, ZF Liuzhou Axle,” says Wang Xiaohua, chairman of the board for LiuGong. “I am very pleased to be here to unveil the brand new AP3000 axle. It marks a new level of our excellent cooperation with ZF, the world’s leading automotive industry supplier, demonstrating our determination in the heavy machinery industry.” AP3000 was developed through the joint efforts of research teams from ZF headquarters in Germany, ZF China and LiuGong. For more than 55 years, LiuGong Machinery Corporation has been a leader in China’s construction equipment manufacturing industry. From building the country’s first modern wheel loader, LiuGong has evolved to become one of the fastest growing, global, CE companies in the world offering a full line of extreme duty, intuitive machines for construction equipment owners constantly challenged to do more with less. ZF is a leading global automotive supplier for Driveline and Chassis Technology with 121 production companies in 27 countries.

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JLG’s Mobile Analyzer provides remote access for troubleshooters JLG Industries, Inc., an Oshkosh Corporation company and a global manufacturer of aerial work platforms and telescopic material handlers, offers the JLG Mobile Analyzer – a first of its kind in the industry, combining a free mobile application and a wireless access module to provide technicians with remote access to program, troubleshoot, calibrate, or customise JLG equipment performance. “The JLG Mobile Analyzer is a Wi-Fi-enabled evolution of the JLG Analyzer Kit, allowing technicians to do the same analysis they are currently doing with the handheld kit. However, this new tool for Apple or Google operating system devices allows for an

extended operating range of up to 150 feet,” explained Chris Mellott, JLG vice president, customer support and aftermarket development. “Continuing to introduce new technologies that help our customers do their jobs more efficiently is a key priority at JLG. We believe this app provides the flexibility our customers need.” Users can download the app at no charge on mobile devices compatible with Apple iOS 5.0 and up, as well as Android API 8 and up, through Apple iTunes and Google Play stores. Regular software updates ensure compatibility to mobile devices. The app works with the JLG Mobile Wireless Access Module.

Proceq’s enhanced hammers Since the introduction of the Schmidt Hammer in the 1950s, Proceq has continuously developed its Schmidt Hammer portfolio to cover the entire range of compressive strength classes. With further improvements of the best-selling advanced rebound hammers SilverSchmidt and Digi-Schmidt and the re-introduction of the Schmidt OS-120 Pendulum Hammer, Proceq‘s concrete test hammer portfolio is the most comprehensive available. The fully integrated digital Proceq SilverSchmidt concrete test hammer meets the new version of the EN 12504-2:2012 standard. Experts throughout Europe recognize EN 12504-2 which prescribes the common method for obtaining a reliable rebound value. This standard is a fundamental requirement of EN 13791 for assessing in-situ compressive strength and is regularly referred to in specification sheets and contract documents. Independent validation testing has shown that the SilverSchmidt’s patented optical detection technology for the rebound value Q has less dispersion than the classical hammers over the entire range. The SilverSchmidt features superior performance, unmatched repeatability and intuitive operation all in a rugged and ergonomic unit.

HBC-radiomatic’s 2.4 GHz tech Nowadays, radio technology makes the work of machine and crane operators a lot easier in many fields of application. With ever-expanding use, the occupancy of available frequencies increases as well. HBC-radiomatic offers a whole set of clever frequency management procedures, specifically designed for “packed” radio areas with many simultaneous radio users. These procedures guarantee efficient and uninterrupted operation without frequency conflicts. The 2.4 GHz technology is an especially efficient option. Moving forward, this option will be available for many HBC radio


systems and offers several decisive advantages: the frequency management is already included and works automatically. Manual frequency coordination and the inconvenient need to harmonise with other radio users is no longer necessary, saving valuable time and money. In addition, this technology is approved almost worldwide and is thus especially versatile for the use around the globe. For more than 60 years we have developed and manufactured high-quality radio control systems with the “made by HBC-radiomatic” seal of quality. Today, HBC radio controls are in demand worldwide.

African Review of Business and Technology - September 2013

Goscor sets out from Port Elizabeth


he Goscor Group’s Port Elizabeth operations – which include Goscor Lift Truck Company (GLTC) and Goscor Cleaning Company (GCC) – officially opened the doors to its new headquarters in Deal Party in May 2013, after outstanding growth in the business meant the company had grown too large for its old premises. Branch manager for both companies, Mike Burley, said that new, larger premises had become essential. “Our growth has been phenomenal and the increased space will make it easier for us to give our clients the kind of personal, comprehensive service they have come to expect from Goscor,” Burley said. The new premises are two-and-a-half times the size of the old premises in Neave township. They include larger warehouse space, a much bigger and better structured workshop, more office space, and a dedicated showroom area for the display of Goscor’s wide range of top-quality products – from vacuum cleaners to large lift trucks. Burley added that the move will make it possible to bring more machines into the short-term rental fleet, and to increase the number of parts in stockholding, thereby improving parts availability and readiness. “The much bigger and betterstructured workshop also means we will be able to service more machines more quickly. This improved service capacity will clearly translate into even less downtime and increased productivity for our customers,” Burley said. With the change to larger premises, an additional technician has also been employed, to cater for the increase in volumes. GLTC managing director Darryl Shafto, said that he was looking forward to even better growth in the region, given the benefits of the new premises. “Appropriate physical conditions are crucial to our business and I know that the new Deal Party premises will make a significant difference,” he said. Shafto added that both the Cleaning and Lift Truck businesses provide world-class machines and solutions, but that this would mean nothing without world class customer service and support.

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bauma Africa

Demolition made easy with complimentary attachments High Power Equipment (HPE) Africa has expanded its range of heavy-duty demolition attachments, designed to complement its exclusive selection of Hyundai machinery. HPE Africa - the sole distributor of Hyundai earthmoving equipment in Southern Africa offers contractors the opportunity to save time and money by investing in its exclusive range of world-class imported attachments, designed specifically for the demolition industry. For the past three years, HPE Africa has been the sole importer of Korean-built Soosan hammers and drills – ideal for any project that requires high volumes of rock to be broken swiftly and safely. Added to this exclusive selection is the Italian-crafted MB crusher buckets – designed to meet international demands for more goods to be recycled on site. Although both products are still relatively unknown in the South African market, there has been a local surge in demand for the equipment, which is easily fitted to all ranges of excavators, skidsteers and wheel loaders, and could save capital projects millions on expenditure. Peter Van Rensburg, sales representative at HPE Africa explains the advantages of the

Soosan’s range of hammers complement HPE Africa’s equipment

Soosan range of hammers: “The Soosan products complement HPE Africa’s equipment as it is a top quality brand – the Rolls Royce of Korean hammers. The attachments are ideal for quarries, mines, demolition, plant hire, or anywhere where breakers and drills are necessary. We only bring in the sturdier models to be fitted to our machinery, because they get abused in a very harsh local environment, so they need to be extra strong.”

Isoli Slidebed delivered to Rwanda bauma Africa exhibitor Isoli recently delivered its Slide 1 Slidebed platform model to Kigali, Rwanda. The platform, with a residual capacity of approximately 8,000kg, is installed on an 18-ton MAN truck and is equipped with a crane to recover damaged vehicles.

Five decades for Klemm At bauma Germany and now at bauma Africa, Klemm Bohrtechnik GmbH marks its 50th aniversary with an exhibition of new and further developed products for the professional drilling world. The focus of the exhibition will be on the varied applications for which compact drilling rigs can be utilised today. One may expect to see again the newly developed KR 702-2, specifically the KR 702-2RW for geothermal applications under extremely cramped conditions, the newly-developed compact KR 801-3FS as a modularly conceived drilling rig with Tier 4i technology, as well as the KR 909-1 as a robust universal drilling rig. Other exhibits, already shown in Germany and likely to be seen in South Africa, include the recently designed KR 806-3F with ‘vibro’ drill head unit, drill-rod magazine and Tier 4i prime mover as well as the KR 807-7F with further developed kinematics and control.


African Review of Business and Technology - September 2013

Bauer technology for specialist engineering


auer Maschinen Group exhibits a broad spectrum of its specialist foundation equipment at bauma Africa, showcasing new and innovative ideas suitable for Southern African markets. The group is looking forward to welcoming large numbers of visitors to its stand, E 20, in the outdoor area. The BG series of rotary drilling rigs, for example, is a core product in Bauer´s portfolio. It will be represented by a BG 20 H. This machine is a compact, highly versatile rotary drilling rig. Its performance characteristics are tailored to the typical specifications for this class of equipment. It shows the multifunctional concept of the BG rig series.

The BG series of rotary drilling rigs is a core product in Bauer´s portfolio" The RB 50 universal drill rig can handle borehole diameters of 108-1200mm and drilling depths of up to 1,200 metres. With its ability to adapt the rig to any drilling system, it is well-known in Angola, Namibia, South Africa and many other countries where water wells have to be sunk in remote areas. Hausherr System Bohrtechnik develops and manufactures hydraulic drill rigs and drilling accessories for the use in quarries, surface mining and the exploration of natural resources. The HSB 3000 is a typical and powerful representative of Hausherr´s 9 model range for constructing blastholes with a max. diameter of 165mm to a depth of 45 m. It is powered by a diesel engine in the range of 290-350 kW and comes with an operating weight of approximately 25 tons. Klemm Bohrtechnik, the specialist for anchor drill rigs, is demonstrating its competency by exhibiting the KR 909-1, a robust universal drilling rig in the 13 ton class which is especially designed for the many and varied applications for compact drilling rigs in the smalldiameter drilling sector.

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A show of strength from Bell and Finlay South African distributor and European manufacturer signal intent to impress regional markets with a superior display of equipment at bauma Africa. This year has been one of rapid growth in business done and in business prospects for Bell Equipment, South African manufacturer and distributor of machinery for construction and mining operations. And the company is in expansive mode. Arguably, amongst its most significant moves is a fresh commitment to distribution in Southern African markets with Terex Finlay's mobile crushing, screening and recycling equipment. The deal with Terex Finlay not only increases the range of products handled by Bell Equipment, but also increases Bell's strategic profile globally. Southern Africa is a key region to be in, and the distribution arrangement between these two enterprises acts as a reference that Bell Equipment is a capable business partner, with viable sales presence and a focus on customer support. Machines marketed across the region, through this collaborative venture, include


Finlay's tracked mobile crusher and screener product line - which is proven in heavy-duty and high-precision applications. Its versatile range of crushers well-suited to the reduction and sizing of aggregates for construction materials and mining, and for recycling waste. The Finlay tracked mobile screener product line features three-way-split, heavy-duty forward-facing units, three-way- and four-

African Review of Business and Technology - September 2013

way-split inclined units and four-way-split horizontal screening units. Take a look at a prime example of a product suited to the region. The Finlay J-1175 tracked mobile jaw crusher incorporates a Jaques JW42 jaw crusher and a heavy duty vibrating grizzly feeder, and offers optimum production in a range of applications. Compact and quick to set-up, easy to transport and simple to

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bauma Africa CONSTRUCTION maintain, the J-1175 is ideal for quarrying, mining, demolition and recycling applications - and it is available through Bell. Then look at the Finlay I-100RS mobile impact crusher, newly arrived to market and already noted for its innovative design. The I100RS was presented to customers in prototype form in Scotland, and is undergoing trials in Europe ahead of its launch toward the end of 2013. A direct drive horizontal impact crusher with variable speed, the I-100RS affords operators the capability to achieve significant levels of production in both recycling and quarrying applications. A great showcase at bauma Africa Speaking with key representatives from Bell Equipment recently who had travelled from South Africa to attend a customer event held by Terex Finlay in Scotland, African Review gained an understanding of the anticipation that the inaugural bauma Africa event generates. This is Bell's home turf, and Finlay enables the South African company to present a great showcase of essential equipment for construction and mining firms of serious intent. The event will feature Finlay and Bell in strength, with a display of the most versatile range of equipment for Africa at its disposal, to show that both firms are responding to the

Bell attended a demonstration of Finlay's range at a global customer event held in Scotland earlier this year

requirements of an increasingly mature region to serve small and medium producers and large quarries equally well. “We will have a range of equipment different crushers, different screens. We are bringing in different types of screening applications,” said Paul Lilley of Terex. “We have always seen Africans at shows around the world, at CON-Agg, at bauma Germany, at bauma China, and they have always been interested in our range of products. That's

why we need a strong supplier in Africa, and that's why we are working with Bell in Africa and exhibiting with Bell at bauma Africa.” There is great potential in southern Africa, and Bell's team is acutely aware of this. South Africa remains a dynamic and mature market - but there is a prospect of great returns for enterprises positioned to work in Namibia, Zimbabwe and a range of other markets, and Bell is ready to provide the equipment and services to support industry stakeholders.

African Review of Business and Technology - September 2013


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Fayat’s comprehensive range of road building equipment The Fayat Group is exhibiting at bauma Africa over 4,800 sq m across blocks F-1009 to 1008/1 - with its road building equipment division subsidiaries, which are presenting an extensive range of road life cycle equipment as well as equipment for laying foundations. This all is rounded off by a demonstration area. The Fayat road building equipment range on display includes: ● Road machines from Bomag. ● Asphalt production plants by Marini. ● Road maintenance equipment prodcued by Breining-Secmair. ● The foundation equipment of PTC. Marini is exhibiting an eTower 2500. This new version of the Top Tower is not just economical – it is also adaptable over time. Economical because the focus is on transferability at reduced cost. The dimensions of the eTower range are such that it can be transported using ordinary carriers. No need for shuttles or exceptional convoys. Entrepreneurs want to be up and running promptly for small and mediumsized projects. Adaptable because while the basic eTOWER version is a traditional production machine, several technical kits round off the range making the plant suitable for various markets. The asphalt pavilion is partially given over to the mobility and hypermobility of asphalt plants. The Fayat Group has extensive expertise in both continuous and batch solutions, and the RoadBatch, RoadStar and RoadMaster are just some examples of the company’s international references. The mobility pavilion is presenting the range of possible solutions.


Fayat is presenting machinery from OMAG, Marini, Breining-Secmair and PTC

Bomag is presenting a large section of its range, broken down into: ● Treatment and compaction of soils. ● Asphalt compactors. ● Asphalt pavers. ● Road milling planers. ● Small equipment. Also on show is PTC, which has completed its range of free hanging vibrodrivers with a range of piling rigs. Advantages of the piling rig solution compared with a traditional free hanging solution: ● Higher productivity (centralised control station, reduced handling, driving power). ● Positioning and alignment of profiles thanks to the adjustable mast, eliminating the need for the guide. ● Compactness: takes up less space (no crane boom).

African Review of Business and Technology - September 2013

S18 ATR Sep 2013 Report IA Mining_Layout 1 23/08/2013 10:00 Page 93 Le Mans

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Magni’s innovative machines

Magni’s HTH machines will be displayed at bauma Africa

A key exhibitor at bauma Africa, Magni has been run by a family of entrepreneurs in the machinery industry since the 1950s. Pietro Magni, mechanic, repairer of tractors and manufacturer first of agricultural vehicles then of tower cranes for construction, established Fargh S.p.A in 1972 along with sons Riccardo and Giorgio, and daughter Franca, for the purpose of designing and building hydraulic cranes. In 1980, he designed and made the first telescopic fork lift in continental Europe, the Fargh 4000 FS with patented boom. A continuing tradition of innovation In 1981, Riccardo Magni succeeded his father after his death in an accident at work - and then developed the Fargh 5000 RT and the Fargh 3000 RT from that first prototype. Its pioneering models formed the basis of a joint venture with the Manitou group


that lasted over 27 years and finally ended in May 2009. During this long period, Riccardo Magni was technical director and chairman of the board of directors of Manitou Italy, and contributed to the growth of that company, creating many inventions for the account of Manitou, which have given life to more than 40 national and international patents, of which he is the designated inventor - all involving the rotating and fixed boom telescopic forklifts, which have remained in property of the French company. In the second half of 2012, unwilling to retire and full of new ideas for telehandlers, Riccardo Magni repeated the action accomplished by his father 30 years before which had led to the creation of the enterprise: he established Magni Telescopic Handlers s.r.l along with his sons Carlo and Eugenio, and daughters Carlotta and Chiara. Riccardo Magni’s personal design

African Review of Business and Technology - September 2013

engineering experience, his constant contacts with the customers, dealers and mechanics throughout these past 30 years, plus his contribution of new ideas has paved the way for the second generation of rotating telescopic handlers. Magni and EAZI on show at bauma Africa Magni Telescopic Handlers will present its ranges of HTH and RTH machines to the African market at bauma Africa 2013: in fact, the Italian company will take part in the show with its African partner, EAZI Sales & Service, which manages distribution of Magni RTH and HTH ranges all over the continent. The 180-square metre stand will be in the outdoor area (stand number C 69) and two models of machines will be shown: a RTH 5.26, a machine for the construction and industry market, and a HTH 25.11, a machine for mining, heavy industry and the oil and gas market.

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New Terex HSI plant with unique crusher discharge design

The Terex CRH1316

Terex Minerals Processing Systems (Terex MPS) has expanded its CR Series portable plant line with the addition of the Terex CRH1316 horizontal shaft impact crushing plant. This large capacity, highly portable, electric plant features a large undercrusher vibrating pan feeder to accept the high velocity crusher discharge material and convey it to the straight-line product conveyor. This unique design eliminates impact damage to the conveyor belt and, maintains maximum belt tension to prevent slippage, while providing a very large discharge opening to prevent blockages. This new plant also offers a variety of options including a self-cleaning magnet, electrical panel with hydraulic lift, hinged hopper extensions and hydraulic run-on jacks. To complement

the CRH1316, Terex MPS has also released the new CRC380X and CRC450X cone plants and the CRS6203V screen plant. These units can match up with the impactor plant to create a large capacity closed circuit crushing and screening system without the need of additional interplant conveyors. Ed Sauser, product manager at Terex Minerals Processing Systems, stated, “This new plant addresses the issue of handling the high velocity discharge from impact style crushers. As with all of our new CR Series portable plants, it was developed with input from numerous customers. Our plants include many design features that simplify maintenance and allow plants to be mated and configured to meet various customer needs.”

Donauer’s contract for Africa’s largest PV system


onauer has won a contract for Africa's largest rooftop photovoltaic system – with integration into Namibia’s existing diesel and electricity grid In a bid to significantly reduce its own energy prices, Namibia's largest brewery, Namibia Breweries Limited (NBL) is relying on a photovoltaic system for its own industrial consumption. Integrating the 1 MWp rooftop PV system into the existing electricity grid with diesel generator will be made possible in the first place through D:Hybrid Energy Management from Donauer in Gilching, Germany. Due to the high energy costs in Namibia the return on investment for this system is given in a very short period of time. Energy procurement costs when operating on the public network will be reduced and more fuel-efficient operation will be ensured during backup operation together with the diesel generator. In each case, the renewable energy produced is consumed directly in Namibia Breweries´ production and guarantees the company permanently low energy costs. Project Developer is the Namibian solar specialist O&L Energy, a subsidiary of the Ohlthaver & List Group of Companies. Donauer won out over the competition thanks to the convincing technical concept of its D:Hybrid system, thus setting another milestone for expansion in the international projects sector. As a pioneer, Donauer has specialised in the integration of photovoltaic systems into existing diesel networks, thus setting standards for a future-orientated energy supply concept. The focus is always on reducing operating costs while guaranteeing a reliable power supply. Our services range from small hybrid systems, starting from 100 kVA, to large-scale industrial plants.


African Review of Business and Technology - September 2013

Doka on safety When it comes to safety, Doka takes a holistic, A-to-Z approach that runs all the way from product development to safety consulting, and to its extensive range of safety products and services. At Doka, solutions featuring allround safety are an integral part of the company’s culture. It’s only when you feel safe that you can concentrate on the job and perform at your best. An obvious truth, but one that particularly needs to be heeded in construction, where the accident rate is twice as high as in other sectors. Study after study has shown that on safe jobsites, people work faster. Quite apart from human suffering and loss of value-creation, accidents also cause heavy costs ranging from sick-leave to legal consequences which may even include work on the site being stopped altogether. The old objection to installing safety systems is that it “means more work”; Doka has made this objection ever less relevant by developing quick and easy-to-operate safety innovations for every type of forming assignment.

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bauma Africa

ELB to launch exciting new products at bauma Africa South African company ELB Equipment (ELB), a supplier of earthmoving, construction, mining and quarrying equipment, is geared up to exhibit its range of equipment at the first bauma Africa exhibition to be held at Gallagher Estate near Johannesburg in September. As an acknowledged market leader in its sector, ELB will be showing world-renowned brands such as Sumitomo, Kawasaki, Powerscreen, Terex, Furukawa, Ditch Witch and Dressta, to name a few, at this prestigious event. Arranged by Messer Műnchen International, well known for organising the bauma Exhibitions in Germany, India, China and now, South Africa, visitors can be assured this exhibition will be a world-class event. Visitors to ELB’s stand can look forward to seeing first-hand some new models of equipment. These include the new Terex TLB890 backhoe loader, the Mustang 2056 skid-steer loader, the Telestack TS542 radial telescopic conveyor, the Powerscreen XH320X impact crusher and Warrior 800 mobile screen. The Dressta TD-25E extra crawler dozer, introduced last year by ELB to South Africa, will also be on display. “As one of a few South African companies offering such a broad range of equipment and top brands, we constantly track technological developments and market trends worldwide to source products, that are suited to, or can be modified to suit South African conditions, and will assist our client base in

significantly adding value and optimising the productivity of their operations,” said Desmond van Heerden, divisional director of ELB. Designed to meet market needs “bauma Africa provides us with the ideal platform from which to showcase these products, demonstrating our commitment to always staying ahead of the market in bringing the latest developments to our customer base. “ELB Equipment’s staff and its overseas principals will be on the stand (outdoor stand numbers D.36 and D.40), and we look forward to meeting and discussing, first hand, our products with visitors,“ noted van Heerden. ELB Equipment represents a number of world-renowned manufacturers whose products are designed to meet the strict emission and safety control regulations that apply to the industrialised first-world countries. Offering industry a wide selection of equipment for construction, earthmoving, mining, quarrying and recycling equipment, ELB Equipment is based in Boksburg, South Africa and has branches in South Africa in Brits, Cape Town, Durban, East London, George, Kathu, Kimberley and Wolmaransstad, as well as a well-established dealer network throughout South Africa. In southern Africa ELB have dealers in Botswana, Lesotho, Mozambique, Namibia, Swaziland, Zimbabwe and Zambia (including the DRC).

Spiroll set for bauma Africa showcase

South Africa is a market with a future which offers great potential for the construction machinery industry. Messe München has demonstrated a high level of expertise in the sector, through the organisation of construction machinery trade fairs not only at its base in Munich but also abroad. For this reason, too, the feedback from the industry regarding such a sector event has been very positive,” said Eugen Egetenmeir, managing director of Messe München GmbH, which is organising bauma Africa.

The allocation of space and expectation of visitors for the show has already been upgraded twice, and will now cover 50,000 square metres, playing host to more than 400 exhibitors. It will certainly be an exciting start for the event, and promises to be an excellent chance for companies from all over the world to show Africa what they have to offer. Spiroll will be exhibiting at the show, and looking to meet potential customers from all over Africa. With our machines already running for a number of years in South

Africa, there is no reason to suggest that investors cannot produce hollowcore with lasting success across the continent. Visitors will be able to see the company at H3 359. Representing Spiroll will be managing director Stephen Carr. He will be joined on the stand by Coreslab, the company’s South African partner, which is making a great success of producing hollowcore with Spiroll machinery. Also co-exhibiting will be Apollo Infratech, partners to Spiroll in India and manufacturers of concrete construction equipment.

Filling all types of bags The intralogistics professional Beumer has expanded its product portfolio with the rotating filling machine Beumer fillpac R. This machine, designed for capacities of 300 to 6,000 bags per hour, can fill all types of valve bags. The complementary bag placing technology for all common bag types rounds out the product portfolio. The weight accuracy of the bags is guaranteed by a calibratable weighing unit. Together with a special bag placer, the Beumer fillpac R can fill even woven polypropylene bags. The three-position cylinder that regulates the coarse and fine flow is protected from dust, because it is positioned vertically and outside of the dirty area. The cylinder for bag discharging is also located in the dust-free zone above the filling spout.


African Review of Business and Technology - September 2013

The Beumer system is also equipped with an ergonomic control panel

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The new Cat® Wheel Loader 986H: A new solution for load & carry tasks and to load on- and off-highway trucks, the 986H is a perfect option between the 980H and 988H. The 986H is engineered to deliver durable performance at a low cost per ton: • Increase operator productivity right away with easy-to-use, intuitive operator interface • Get maximum uptime with our field proven lift arms that provide excellent visibility to the work area through a Z-bar design • Move more with a safe and spacious operator station • Make more with highly durable structures that achieve multiple life cycles and withstand the toughest loading conditions For more information contact your local Cat dealer.

© 2013 Caterpillar • All Rights Reserved CAT, CATERPILLAR, their respective logos, “Caterpillar Yellow” and the “Power Edge” trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.




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bauma Africa

PMSA to showcase new technology at bauma PMSA has put significant preparation into its outdoor and indoor 300-square metre exhibition space to accommodate its new products. PMSA marketing and sales manager Quintin Booysen said, “The outdoor stand has been designed to be a demonstration area to showcase the capabilities of a comprehensive range of PMSA machinery, including; the Fiori self loading concrete batching vehicle, the automated RE600 concrete brick and block making machines, in addition to a wide range of HTC floor grinding and polishing machinery and accessories with live polishing and grinding demonstration. PMSA will also host all of its international suppliers at its indoor stand, in order to provide expert advice and insight to visiting guests.” This year’s event will bring together more than 500 exhibitors and 15,000 visitors to the Gallagher Convention Centre. “bauma is globally recognised as a premier construction show, and by hosting the event in South Africa, it provides local audiences with the opportunity to experience the new technical offerings and products from companies that would traditionally be out of reach, due to the fact that the event in Germany is costly to travel to for most companies based in Africa,” Booysen said.

Quintin Booysen, PMSA marketing and sales manager

PMSA manufactures and delivers equipment which represents several European concrete equipment manufacturers to complement the company's own concrete equipment portfolio, Booysen said. "Equipment that is manufactured in Europe to the highest standards has been selected by PMSA to suit the harsh African climate and terrain. This equipment is backed up with dedicated after-sales and technical support, which has made PMSA a tried-and-

trusted name in the industry.” Booysen noted that the African concrete industry is being affected by the skills shortage, adding that more training programmes need to be rolled in the construction sector, in order to increase expertise of staff in the industry. "The skills shortage is prevalent across the industry and continent, and PMSA is committed to providing in-house training and technical support that willmake employees a more valuable asset to the company," added Booysen. PMSA sales and marketing manager said it expects that there will be a significant rise in demand for PMSA’s concrete equipment and technology throughout sub-Saharan Africa, as trade and investment rises across Africa. “PMSA prides itself on assisting its customers in being successful in every aspect of their business, by consistently delivering on its promises. With strong economic growth forecast for Sub-Saharan Africa in particular, PMSA plans to be at the grassroots of that development by supplying all associated concrete equipment, technology and solutions to the various projects through the PMSA Group of Companies,” he concluded. PMSA will exhibit its product offering at stands D 26 and H5 111 during the entire duration of the bauma Africa Trade Fair.

Sullair launches air compressor solution


ullair has announced that it has launched HPL 1500, a new lubricant that aims to meet the rising demands of higher pressure portable air compressors. The company is a manufacturer of portable air power compressors, contractors' air tools, stationary air power compressors, compressed air treatment equipment and vacuum systems. HPL 1500 is suitable for high pressure rotary screw portable compressors, which are used in applications such as down-the-hole percussive hammer; deep water well and geothermal drilling; pipeline testing; oil and gas well servicing; sandblasting; rock drilling; and pile driving, the company said. Sullair’s new lubricant product uses processed synthetic hydrocarbon fluid, which enables easier cold weather starting and faster warm up. HPL 1500 can withstand temperatures from -20°F to 125°F, while providing protection. The new HPL 1500 lubricant has taken two years to develop and test, according to Sullair.


African Review of Business and Technology - September 2013

The new HPL 1500 lubricant has taken two years to develop and test”

The new lubricant aims to meet the demands of higher pressure portable air compressors.

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S18 ATR Sep 2013 Report IA Mining_Layout 1 23/08/2013 10:00 Page 102


bauma Africa

Scale modelling of Sennebogen’s balancer machine


ennebogen has always seen itself as an innovation leader and is always looking for new product developments. With its first balancer material handling machine, the 8130 EQ, Sennebogen has launched a machine that impresses in every respect. The latest product development from Sennebogen is consistently balanced in any situation and guarantees minimal energy and running costs in daily use. For both the show case and desk, the company has prepared a 1:50 scale model of the machine for the exhibition. Fully functional and balanced, the scale The Sennebogen 8130 EQ comes in attractive packaging and is model can be moved completely delivered in completely assembled ,including the counterweight. and user-friendly form Like the original, the 8130 EQ is always balanced thanks to an adjustable counterweight and the centre of gravity stays in the middle. Due to this equilibrium concept, the machine stays constantly balanced. Two versions of the undercarriage, on tracks or as a stationary solution, offer variety. The reproduction of the maXcab industry cabin has now also been used for the first time on a scale model. In addition to the long equipment including the clamshell, the elaborate uppercarriage is rotatably seated on a 15cm-high pylon. A climb leads up to the walk-in power pack that provides a view into the engine compartment.

Pilot Crushtec and Sandvik If you’re at all involved in the mining, quarrying, recycling, contracting, metal working and advanced material technology industries, then you will undoubtedly already have heard of this highly reputable brand. Sandvik is an innovative, hightechnology engineering group spanning an impressive 130 countries, and known for its stateof-the-art equipment. The Mining and Construction division of the company accounts for approximately one third of the entire Sandvik Group, and covers a broad range of fields, including demolition, excavation, roadbuilding, recycling, quarrying and tunnelling. The company has an extremely well-earned reputation as a favoured supplier of machinery to the mining industry, within South Africa and overseas. Pilot Crushtec International distributes Sandvik mobile crushing and screening equipment, and is responsible for


African Review of Business and Technology - September 2013

stocking and introducing a vast range of products to a predominantly South African audience. Thus far, Sandvik machines have been extremely well received, both within SA and in neighbouring countries as well. Sales have exceeded the R60mn (US$6mn) mark and the equipment has been employed for a wide range of applications, each time, with positive feedback from satisfied consumers Some of the industries employing Sandvik equipment include alluvial diamond mining, civil engineering, coal and copper mining and building and construction. Sandvik may provide the machinery, but Pilot Crushtec provides the service and together, the two are an unstoppable force. Pilot Crushtec International is dedicated to assisting consumers with every aspect of their machinery, from installation to after-sales service, maintenance and repairs.

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S18 ATR Sep 2013 Report IA Mining_Layout 1 23/08/2013 10:00 Page 104


bauma Africa

More quality in road construction A hitch-free work process is particularly important in order to ensure quality and cost-efficiency in road construction. All work steps must be perfectly coordinated. For this reason, Joseph Vögele AG produces not only individual technologies, but also complete systems which follow logically one from the other: material management, machine operation, feeding the paver with mix, machine and screed technology, and process management all form a single unit in Vögele's quality philosophy.


"PaveDock Assistant" and "PaveDock" push-rollers from VÖGELE are a perfect combination for road construction projects without a feeder

Vögele feeder technology Uninterrupted asphalt paving is based on the material management of the Vögele PowerFeeder. High daily laydown rates with outstanding quality can only be realised in this way. Vögele's attention focuses particularly on ensuring that the mix is transferred to the paver with absolute precision and reliability, and without contact. Automatic distance control helps the paver operator to concentrate entirely on the transfer of mix. Additional safety is assured by the collision protection system: if there is any risk of a collision, the paver following behind the feeder is automatically stopped and a potential collision prevented. Special technical solutions have been developed to prevent segregation of the mix as it is being transferred to the paver's material hopper. Conical worm conveyors in the receiving hopper of the feeder and the trough-shaped belt conveyor serve to homogenize the mix. Transfer of the mix with "PaveDock Assistant" and "PaveDock" "PaveDock Assistant" and "PaveDock" push-rollers from VÖGELE make a perfect combination, ensuring maximum process safety when transferring mix in road construction projects without feeder. "PaveDock Assistant" is a simple and reliable communication system permitting optimum coordination between paver operator and feed vehicle driver. The signal lights mounted on the right and left of the paver's hardtop and the associated controls on the paver operator's ErgoPlus 3 console are key elements. The sprung "PaveDock" push-rollers efficiently absorb any jolts produced as the feed vehicle docks on.

Uninterrupted asphalt paving is based on the material management of the VÖGELE PowerFeeder


Trimble optimises excavator productivity

African Review of Business and Technology - September 2013

rimble offers the Loadrite X2350 Payload Management System for excavators, a dynamic onboard weighing system to optimise bucket loads, track load out tonnage, and monitor cycle times. Now available through the Sitech Technology dealer network, the Trimble Loadrite X2350 system expands Trimble's heavy civil construction portfolio to include accurate, measured payload data from excavators, helping contractors maximise productivity with less rework. Managing materials more efficiently The Trimble Loadrite X2350 System improves excavator productivity by efficiently weighing the material in the bucket and displaying the payload information on an easy-to-read indicator in the cab. The system can improve operational efficiencies for many excavator loading applications, including mass earthworks, remote sand pit load out, quarry and mining. The X2350 helps keep the entire earthworks excavation loadout operation running at capacity and can eliminate the cost of additional machines and trucks to support the excavator. On a typical loadout project, a contractor can save thousands of dollars just by eliminating one wheel loader or one truck to haul material away. Without the Loadrite system, an excavator operator must gauge the maximum load on a truck based on experience and feedback from the weigh bridge (truck scale) at the final destination; however, at that point it is too late to prevent an overload ticket or wasted fuel, time, and truck capacity due to an under-loaded truck. Using the Trimble LOADRITE X2350 system to optimise payload at the excavator reduces the risk of double handling materials and turnarounds at the truck weigh station due to over or underloading. It can also reduce costly fines for overloading haul trucks and unnecessary under-loaded truck cycles that waste fuel and time.

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Provider the SITECH® team knows how to apply innovative solutions to effectively solve your biggest construction challenges. Visit your local SITECH dealership for a comprehensive analysis of your workflow and an understanding of how Trimble Construction Technology products will increase your productivity today.

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Custom-made pontoons for easy accessibility Weir Minerals Africa provides a cost-effective solution for dewatering at open pits


he advantages of pontoons for the dewatering of open pit operations have become apparent to a number of mines throughout Africa. This increased awareness is a result of the efforts of Weir Minerals Africa, which has highlighted the many cost and efficiency benefits of this technology to the local market. Howard Jones, Weir Minerals Africa’s rental and submersible manager, said, “This is in line with the growth of our entire dewatering division and underlines the popularity of Africanengineered technology.” Weir Minerals Africa’s design centre, one of three design centres within the global Weir Group, has customised the design of pontoons produced by its Australian counterparts to suit African conditions. “There is an unprecedented need for more cost-effective and operationally efficient dewatering solutions in the African mining industry,” Jones added. He added that conventional dewatering solutions are less effective and require expensive civil works, whereas pontoons are installed at the source, making pumping more efficient. Another major advantage is being able to migrate the pump wherever it is needed, compared to the alternative, in which a new pump station would have to be developed.

Longevity and durability are important factors in the selection of a pontoon; the initial construction of the pontoon obviously plays a critical role Built to endure In its approach to the design, Weir Minerals Africa has factored in the harsh conditions found on mine sites. “Pump pontoons not only need to be impervious to corrosion, but also need to be stable and rigid. During the re-engineering of specific pontoons for the African market, we simultaneously broadened the product offering for use in other regions such as Russia, South America and Australia,” says Ian Farquhar, Weir Minerals Africa dewatering manager. Farquhar points out that in addition to extensive input from its mechanical engineers, the company seconded the services of structural engineers to ensure the structural integrity of the pontoons. Construction materials vary from complete steel pontoon barges to linear low density polyethylene flotation devices with steel frames for lighter applications, where mobility from one pond to another is required. The designs can handle most Weir Minerals pump offerings, with a load bearing capacity from 500 kg to 10 tonnes, including the structure. The floating walkway holds the cable and piping from the


African Review of Business and Technology - September 2013

A Multiflo trailer mounted diesel driven Warman DWU pump set

docking station to the shore and provides ready access to the pumps. Jones says that while the majority of the pontoons used in Africa are medium-sized units, Weir Minerals Africa has the ability to produce units for larger applications which can include workshops and sleeping quarters for personnel. “Our pontoons range up to 10 metres in length and five metres in width. In addition, our engineered solutions can accommodate extended walkways. Our larger barges can cater for large ponds, dams and alluvial sea applications, as well as situations where harbours or tailings dams require desilting,” says Jones. In addition to their use in open pit dewatering, the pontoons are suitable for dewatering applications in which migration of containment ponds takes place in line with rainfall, or for alluvial applications. The large pontoon can also be used in acid mine drainage (AMD) applications for dewatering underground shafts. Diesel driven selfpriming pumps, installed on lightweight pontoons, are used for desilting settling tanks and dams in the platinum and iron ore industries. Time frame is critical Longevity and durability are important factors in the selection of a pontoon for Weir Minerals Africa. “We are continually innovating to provide solutions for our customers’ changing needs, thus ensuring the growth and sustainability of our pontoons business. We are currently engineering a product for the desilting of small craft harbours, as well as assisting in the desilting of major ports,” Farquhar concludes. ■

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Trommels take it all S

pecialised equipment supplier Multotec is a leading manufacturer of trommel screens to the global mining industry, having supplied these products to mining operations around the world for the past two decades, including many remote areas. “We’ve literally supplied our trommels to all four corners of the earth,” Anthony Yell, Multotec screening product manager, says. “What differentiates us in the marketplace is that we review each application and harness Finite Element Analysis (FEA) to design our trommels for a fatigue life of five years. But the reality is that, provided customers maintain the polyurethane or rubber linings in good condition, our trommels can last well in excess of this period. “These trommel frames are not throwaway items - they are designed to last for years in customer specific applications and duties, and we’ve been able to establish a strong track record of longstanding units in the field, because FEA allows us to design to suit specific operating conditions accurately. Our frames comply with the industry standard BS 7608:1993, which focuses on fatigue design and assessment of steel structures, and are designed to function below these maximum stress levels to optimise fatigue life. “Increasingly mines are commissioning single stream plants to reduce capital costs. The downside of this is that equipment needs to be very reliable and run for periods of 12 to 14 weeks without stopping. Mills are increasing in size and tonnages are climbing to achieve higher throughputs and to reduce operating costs, especially in the copper sector. This makes it critical to correctly manage peripheral speed and install trommel panels that can go the distance for these extended operating periods.” Earlier this year, the company supplied its single biggest trommel order — two 52 ton self-driven trommel screens to a mineral sands project in Senegal, West Africa. These self-driven trommel screens have inside diameters of 3 365 mm and are 16 544 mm in length. Each unit is capable of handling 4 375 tons per hour of solids feed, or 12 888 cubic metres per hour of pulp. And a company in Saudi Arabia processing material with a low pH level recently ordered trommels comprising a combination of heavy duty wedgewire and laser cut wear

resistant steel panels to screen out the material. Butyl rubber lining was also selected to handle the highly corrosive environment. “The diversity of these orders proves that Multotec is able to respond to a spectrum of specific customer requirements by designing purpose-built trommels in the most cost effective and efficient manner,” says Yell. ■

The self-driven trommel screens supplied by Multotec to a mineral sands project in West Africa have inside diameters of 3 365 mm and are 16 544mm in length

African Review of Business and Technology - September 2013


S19 ATR Sep 2013 Report IB IC Mining_Layout 1 23/08/2013 11:31 Page 108



Monitoring electric shovels online

P&H Mining’s electric rope shovels have capacities up to 100 tons and are used for high production loading in surface mines.

Technological advances make operational analysis in mining much easier and less expensive


&H Mining, part of Joy Global, is the world’s largest manufacturer of aboveground mining equipment. Its electric rope shovels, with capacity up to 90.8 tonnes, are used for high production loading in surface mines; its draglines have bucket capacities to 122 cubic metres. P&H also produces blasthole drills, mobile mining crushers and other mining equipment. The company does business on every continent, except Antartica. In Africa, support is provided from Johannesburg, South Africa. Economic factors Due to the global demands for metals and power, mines are required to operate at full capacity. Mine operations cannot afford any critical assets to shutdown unexpectedly; downtime for a single shovel can be as much as US$500,000 per hour. Electric rope shovels are one of the most critical assets in open pit mining. They are very large, complex machines with DC or AC motors, multiple reduction gearboxes and multiple large rolling element bearings. This complexity, combined with the tough 24/7


service, results in too much unplanned shovel downtime, which can affect the entire downstream process. Monitor or wait for shutdown? Some mining equipment manufacturers and mining companies do not monitor the mechanical health of their shovels, choosing instead to wait for scheduled shutdown periods. P&H chooses to monitor the health of shovels on a regular basis, using vibration analysis. For some time, progressive mines and P&H did this using portable monitoring equipment, but recently they have begun to do it automatically. This article will go over vibration monitoring and explain how P&H is now using it to maximise uptime and prevent unexpected equipment failures. Why vibration monitoring is useful A mining shovel is difficult to monitor because of its mechanical complexity. For this reason, vibration analysis tends to be the best technology to determine its health. Vibration sensors can be attached at the bearing locations on the shovel’s complex gearboxes

African Review of Business and Technology - September 2013

and motors, either for the duration of the test or put in place permanently. Analysis of the signals from the sensors can identify lubrication issues, early bearing defects, early signs of gear defects, alignment issues, structural issues, manufacturing defects and more. With early detection of developing problems, maintenance actions can be planned with minimal production interruptions, and minor issues can be corrected before they become major faults. And if the analysis indicates that a major component will soon need replacement, there is enough time to make plans and order the replacement before a failure occurs. However, an electric rope shovel is not an easy application for vibration analysis. The shovels are variable-speed systems with short cycle times, complex gearing arrangements and high background vibration levels — not to mention that they tend to be located in some of the most remote places on the planet. First application of vibration monitoring P&H Mining Equipment was the first shovel manufacturer to successfully apply predictive

S19 ATR Sep 2013 Report IB IC Mining_Layout 1 22/08/2013 17:53 Page 109


:LW[LTILY 1VOHUULZI\YN Visit us at hall 5, booth H5.272

S19 ATR Sep 2013 Report IB IC Mining_Layout 1 22/08/2013 17:53 Page 110



technologies and services to its electric rope shovels and other mining assets. This involved not only portable vibration analysis but also infrared examination, lubricating oil analysis and ultrasonic testing. From these service offerings grew the P&H MinePro service organisation. For the portable vibration analysis, MinePro used technology from Emerson Process Management’s CSI Portable Technologies and Machinery Health Management (MHM) business, including PeakVue analysis software. This is designed to pick out and identify the high-frequency components of a vibration signal, which provide early indications of developing bearing faults. These include inner and outer race defects, ball defects, lubrication problems and any type of “impacting” fault, where metal is contacting metal. PeakVue also provides early failure warning of those expensive gearbox components. Vibration sensors are moved from point to point on various parts of the shovel and connected by portable data-gathering equipment; during which the shovel is then operated through a consistent sequence of motions of the swing, hoist and crowd systems. This is done about once a month, and involves taking the shovel out of production for two to four hours while it goes through simulated operation. Advantages of the automated approach A shutdown can cost up to a million US dollars. In addition, sending personnel to monitor the working parts of the shovel, which must be in motion during many parts of the data acquisition, raises safety concerns. For example, a common test procedure involves making the shovel rotate in a circle for 20 minutes with two extra people on board to do the monitoring. On top of this, simply planning for that monthly outage can be a Herculean task, requiring coordination among production department, maintenance department, the onsite safety manager and specialised personnel where needed. It is not unusual to have to wait two weeks to get a shutdown scheduled.

Accelerometres are mounted to bearing locations on the shovel.

The online vibration monitoring systems on P&H’s Centurion controlled shovels is integrated to send vibration information directly to P&H headquarters If a vibration monitoring system could be permanently mounted to the shovel and operate automatically it could gather information as the shovel is operating, with no shutdown. And it would not need to be scheduled in advance or coordinated with the production department. Checking out online monitoring To evaluate, P&H MinePro selected Emerson to put a vibration monitoring system on one

P&H draglines have bucket capacities to 160 cubic yards (122 cubic metres)


African Review of Business and Technology - September 2013

of their 4100XPC shovels used at Chilean Copper Corporation (Codelco)’s Radomiro Tomic copper and molybdenum mine, located at an elevation of about 3,048 metres in the Atacama desert in northern Chile. This involved a CSI 6500 Machinery Health Monitor that would continuously monitor the health of the shovel’s swing and hoist systems. Depending on user preference and the availability of resources, the data can be analysed on site or sent via satellite to P&H headquarters. The online vibration monitoring systems on P&H’s Centurion controlled shovels is integrated to the shovel’s PreVail Remote Monitoring System to send vibration information directly to P&H headquarters. A shovel will generally have one or two CSI 6500 systems, one handling 24 channels and the other 48 channels, to monitor hoist, crowd and swing systems; a dragline may have as many as eight. Emerson’s AMS Machinery Manager is also installed on-board the shovel. Accelerometers (the sensor of

A failed gear can be detected through vibration analysis

S19 ATR Sep 2013 Report IB IC Mining_Layout 1 22/08/2013 17:53 Page 111



Weir Minerals Mill Circuit Solution

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S19 ATR Sep 2013 Report IB IC Mining_Layout 1 22/08/2013 17:53 Page 112



Wireless data is downloaded in a pickup truck on-site, which will take it back to the shop for analysis

choice) are mounted to bearing locations on the shovel. Data is collected under the same conditions for both trending and analysis. PeakVue is a measurement technique that detects and analyses stress waves using peak value analysis. It allows for early detection of bearing and gear defects by filtering out background and non-repetitive

Basics of vibration analysis Just as we subconsciously compare the way our cars sound and feel to a baseline, and an experienced mechanic can often tell what is wrong with a vehicle just by driving it, a form of listening can apply to industrial machinery. Most industrial equipment has numerous sources of vibration. These can include imbalance, in which the centre of mass is not the centre of rotation; mis-alignment, in which two masses spin on coupled axes that are not collinear; bearing failure, which can occur in both rolling element and sleeve bearings; gear vibration, often caused by tooth damage; structural resonance or looseness; influences from the process itself, electrical influence, and many more. Measuring Vibration Vibration, as the movement of an object, can be measured in three ways: displacement, velocity or acceleration, and there are sensors for each. Displacement probes actually monitor shaft motion, and are the preferred probes for monitoring the sleeve bearings used in turbines. These are also the most difficult type to install, and usually the most expensive. Velocity probes are self-powered, and are typically seen on large steam turbines for “absolute vibration” measurement. They’re not commonly used any more due to their size and cost to manufacture. Accelerometers are the most common sensor type used for industrial rolling element bearing applications. Newer devices marked as “Velometers” are actually accelerometers with integration circuitry built in.


vibration to produce repeatable and trendable data. The vibration levels in gearboxes and motors vary with speed and direction. So in order to get meaningful data, it is necessary to measure when the shovel is making particular movements at particular speeds. For the CSI 6500 this is simply a matter of setting the equipment to watch for those conditions to occur and only then take data. This may mean that, out of perhaps 300 cycles that a shovel completes in one eight-hour shift, only three will meet the criteria for gathering data, but that is more than enough — especially compared to the previous once-a-month regime. Staged testing A stage test PreVail is done per shift; the system then operates the swing, crowd and hoist systems in a pre-set pattern long enough for a test. This is generally done

Types of Vibration Data The simplest way to perform vibration analysis is to measure its overall level, generally without regard to frequency. This is commonly done using overall monitoring instruments (vibration pens), vibration trip systems, online vibration protection systems and vibration transmitters with 420 mA output. Overall vibration monitoring is easy to use; it gives an empirical indication of overall condition and can provide a good indication of the overall health of the machine as well as provide insight into process issues. On the other hand, as it is insensitive to frequency it is unable to isolate background vibration or identify specific sources of vibration. In general, it gives the analyst an overall view of the machine condition but it is difficult to diagnose specific machinery faults using overall data and it may only assist in detecting faults in late stages. Parameter Banding, Alarms and Trending By breaking the frequency spectrum of vibration into different bands, then taking the frequency ranges separately and trending and assigning an alarm level to each, it is generally possible to localise a particular vibration signal to a particular source. A common practice is to choose narrow bands, each centred on a harmonic of some fundamental system frequency like shaft rpm. As an alternative, each band can be centred on a frequency characteristic of a certain component. On a rolling-element bearing, for example, the frequencies of vibration that would be produced by various types of damage — to the outer race, inner race,

African Review of Business and Technology - September 2013

Vibration, as the movement of an object, can be measured in three ways: displacement, velocity or acceleration during idle time, so it takes no production time. When data collection is complete the system informs the operator. Proof of Concept Test – Phase 1 Results On the first automatic vibration monitoring installation the system was able to trigger and collect data both during staged test and during digging operations. Repeatable data was collected at 1000 Hz/3200 LOR (lines of resolution) each cycle during dipper latching. The data was found to be repeatable.

rolling-elements or cage — can be calculated in advance from the characteristics of the bearing. During analysis the frequency band associated with each can be monitored and trended over time. This method provides better picture of the overall health of the equipment; the trending gives an indication of problem severity and time to repair: an increasing trend is easy to understand. On the other hand, it still does not fully identify faults and can be misleading. Therefore, other more “advanced” analysis techniques (beyond the scope of this sidebar), may be required. Spectral Analysis Spectral Analysis involves displaying the received data in the frequency domain, which is obtained by Fast Fourier Transform (FFT) applied to the time-domain data. This method can identify faults with considerable precision and determine fault severity, but it is time-consuming (requiring the calculation of four expected frequencies for each rolling-element bearing, plus additional calculations for gears), and it requires special training and experience. A balance of technology All the methods described are useful in machine maintenance. Arguably the best approach is to first establish a baseline on all equipment using spectral analysis; then use parameter banding and trending as a screening tool to identify areas that will need additional attention. Finally, detailed analysis should be performed only on equipment with alarms or increasing trends. The simplest method, overall vibration, can be used as a trip setting.

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Payback The installed cost of a CSI 6500-based monitoring system for a typical mining shovel is on the order of US$200,000 to US$250,000, which is recovered when the first hour of unplanned downtime is prevented. Of course this depends on the material (ore and ore quality) being mined. Results Results have been good. Data is now collected more often than daily, with no outage needed, meaning no revenue lost. Future plans Plans call for the vibration monitoring equipment to download its data wirelessly to a pickup truck parked nearby, which will then take the data back to the shop for analysis. And that can happen via PreVail

Nobody is ready to allow equipment to make a decision that will involve shutting down without human interference

Vibration measurements on a shaft with rolling-element bearings. The top chart, in the frequency domain shows vibration peaks at the harmonics of the frequency at which the rolling elements pass any particular spot on the bearing’s outer race. These indicate that there is a defect on the outer race of the bearing, and it will soon fail

shipping the information back via satellite. Wireless communication systems continue to improve in the mining pit and will soon remove the pickup truck from the process, sending the data directly to the maintenance engineer’s desk. No user has yet reached the point that it will allow the

vibration analysis to automatically trigger a repair order, insisting that an analyst to review it first. While artificial intelligence is progressing, nobody is yet ready to allow the equipment to make a decision that will involve shutting a machine down without having a human in the loop. ■

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S20 ATR Sep 2013 Report ID IE Mining_Layout 1 23/08/2013 11:35 Page 114



Engaging employees in processes for prevention Contract mining firm continues to stress worker safety through the official roll-out of a 'Fatality Prevention Programme' at sites and projects across the continent edpath Mining South Africa managing director Ockert Douglas has been personally undertaking a series of roadshows at all of the company's seven sites and projects in Africa, in order to promote the importance of safety in the workplace to more than 600 employees. “Safety is a core value of our business and the Fatality Prevention Programme contributes towards a sustainable future for the current and future employees of our business, and this initiative is fully endorsed by my management team and I," he explained. Douglas gave a presentation on the Redpath Fatality Prevention Programme in May 2013 to more than 100 workers at the Ghaghoo diamond mine in Botswana, where the company is currently in the process of completing the construction of a R67-million (US$6.5mn) sand tunnel at an inclination of 8° to a vertical depth of 87m below surface. Here, he highlighted the main objectives of


Redpath Mining South Africa MD Ockert Douglas

the Programme, which includes; commitment from leaders to implement the Programme; to engage all employees in the process of fatality prevention; and to ensure universal

compliance with Redpath’s Cardinal Rules and Fatal Risk Elimination Protocols. "The Fatality Prevention Programme is multifaceted, and has been developed to work with, and enhance existing safety systems. Fatality prevention components are now prominently embedded within several of our existing safety systems, along with a number of new tools," says Douglas. Despite the fact that Redpath already boasts a comprehensive Safety Programme, Douglas points out that industry wide, occupational fatality rates have in fact risen after more than a decade of downward trend. "In recent history, we have seen a steady decline in the number of injuries, but simply looking at the falling injury rates as way of measuring safety performance is deceiving." Douglas reveals that a low or decreasing injury rate does not guarantee that fatal risks are being adequately managed. "A more formal and standardised global programme

Redpath Mining South Africa continues to place a strong emphasis on worker safety


African Review of Business and Technology - September 2013

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refines our fatality prevention efforts and will improve results, with the ultimate goal being the elimination of fatal risks and fatalities in the workplace." Bearing this in mind, the Redpath Fatality Prevention Programme has developed the following protocol of ten 'Cardinal Rules' that should be adhered to by all employees at all times: ● Never move or operate machinery or equipment without the appropriate training and authorisation. ● Never tamper with, or make a safety device inoperable. ● Always correctly isolate equipment from all energy sources before working on it. ● Never remove another person’s personal underground access tag or personal lock. ● Never enter an area that has access prohibiting barricades or signs without authorisation. ● Never work or travel under unsupported ground or suspended loads. ● Never work at height above the site’s prescribed distance or within the site’s prescribed distance from open holes without suitable fall protection. ● Always comply with explosives, blasting and re-entry procedures. ● Never operate heavy equipment within ten metres of any pedestrian without first establishing and then maintaining positive contact. ● Always park equipment securely so that it cannot move in an uncontrolled way. Risk management protocols Douglas indicates that the 'Fatal Risk Elimination' protocol is the second major new component of the Fatality Prevention Programme. "The idea of the protocols is to establish the minimum requirements for the management of these fatal risks consistently across our business, and they have been developed to work in conjunction with local legislation or

Douglas gave a presentation on the Redpath Fatality Prevention Programme in May 2013 to more than 100 workers at the Ghaghoo diamond mine in Botswana

other external requirements." If a breach of a Cardinal Rule is suspected to have occurred with no resultant fatality, Douglas explained that the incident will be fully investigated. "It is important to understand the causes behind violations, and the reasons why people fail to meet performance standards, from the outset." Identifying the source of fatalities According to Douglas, the first step in determining potentially fatal situations, is to first identify the types of work most prone to fatalities. From here, he states the importance of identifying the employees most likely to be involved in a fatal or serious incident. "New and temporary employees are always at a greater risk, due to the fact that they are less likely to be familiar with the company’s safety procedures, and are less likely to be more closely supervised. Employees who work more hours often trade off the benefit of added production with fatigue and an increased likelihood of incidents," he continued. Douglas believes that job observations

are an effective tool to assess potentially fatal situations. "Unplanned inspections and workplace visits should be undertaken to observe workers on the job. It is also of the utmost importance to ensure quality over quantity, when observations are involved." Fighting complacency and maintaining a sense of vulnerability is another important mindset for employees to adopt, added Douglas. "Proactive close call reporting is key to fatality prevention, and an individual will not be penalised, criticised or embarrassed for proactively reporting close calls." Douglas concluded by adding that everybody within the organisation has a role to play in the prevention of fatalities. "Deviations or delays from the projected schedule and performance, due to time spent making sure that the work is done safely, are justified and supported by Redpath management. With this in mind, I believe that we have the ability and experience to conduct work without injuries and fatalities in 2013." ■

Zambian emeralds earn US$1.8mn Zambia earned a total of US$1.89mn from the auctioning of emeralds conducted recently, the country’s mines minister, Christoper Yaluma has disclosed. Gemfields Plc, the 75 per cent owners of Kagem Mining Limited, the country’s biggest emeralds producer, recently held an auction of high grade emeralds, attracting 37 foreign companies. ’’The auction was amongst the most successful auctions that the company has ever held,’’ the minister said. The company sold 583,448 carats of rough stones at its first high-quality emerald


auction in the Zambian capital, ploughing in US$31.5mn. The company realised an average price of US$54 per carat its highest in an auction. ‘’As a country, we have also earned US$1.89mn in mineral royalty from this auction,’’ he noted. Earlier this year, the Zambian government directed that all auctioning of emeralds mined in the country be held locally as their sale in foreign markets contributes to capital flight. Gemfield, which changed the venue to Lusaka for an auction which was initially earmarked for Singapore, was selling the green stones

African Review of Business and Technology - September 2013

from Kagem mine outside the country until the government directive was effected. ‘’The results from this auction demonstrate Zambia’s potential to becoming yet another market where not only Kagem but other gemstone producers in the country can profitably sell their products,’’ Yaluma said. Gemfields CEO Ian Harebottle said this recent auction underscored Lusaka as a key hub in the international emerald trade. Nawa Mutumweno

S21 ATR Sep 2013 Report Solutions A B_Layout 1 22/08/2013 18:37 Page 117

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S21 ATR Sep 2013 Report Solutions A B_Layout 1 22/08/2013 18:37 Page 118


Professional Development A unique facility for aspirational miners


he Murray & Roberts Cementation Training Academy carries the exclusive distinction of being the only training facility of its kind in South Africa that is ISO 9001:2000, ISO 14001:2004 and OHSAS 18001:1999 certificated. It has also been accredited by the Mining Qualifications Authority, the country’s Mining and Minerals Sector Education Training Authority, effectively licensing the facility to provide training in engineering, mineral extraction, occupational health & safety representative skills and ABET. With a current capacity intake of 450 learners per day, the Training Academy has plans to extend its services beyond Murray & Roberts Cementation employees, to the South African mining industry at large. The Academy also recently applied to the MQA for scope extension into the wider field of occupational health & safety at National Qualification (NQ) level 2 and 3. “This is a world class mining contracting training facility,” Tony Pretorius, risk manager at the Murray & Roberts Cementation Training Academy, says. “We have all the necessary resources and


competencies to deliver world class training to industry personnel. Our range of capabilities in occupationally directed education, training and development includes ancillary soft skills programmes, basic engineering, conventional and trackless mining and development, mining services and shaft sinking as well as adult basic education and training and a host of other SHEQ-related programmes “Our training methodology incorporates a wide range of technology such as elearning, conventional and mining services mock-ups, trackless mechanised simulation, visual based training and mass integrated assessment based training. We’re also able to provide accommodation for our trainees for the duration of their courses.” Based near Carletonville, South Africa, the Murray & Roberts Cementation Training Academy was established in November 2005, originally to provide employees with company induction and special skills training. Over subsequent years, and as a result of substantial investment into the facility, its offering has expanded and evolved to occupy a

African Review of Business and Technology - September 2013

foremost position in the mining training arena. In 2012, a multi-million rand upgrade to the facility made it possible for the training team to implement components of the necessary skills transfer across all stages of Murray & Roberts Cementation’s new shaft sinking method. The new shaft sinking method, proven in the Canadian mining industry, is a complete move away from the traditional South African approach to shaft sinking. All activities in the sinking cycle are handled in line - no two jobs take place simultaneously. At the Murray & Roberts Cementation Training Academy, each of the four existing six metre diameter training shafts has been modified to replicate a specific phase of the new shaft sinking cycle. This ensures that every team member actually practices the procedures repeatedly to develop end user proficiency skills before being deployed to a project site. In support of applied competency, all learners undergo stringent assessment to ensure skills programme exit level outcomes are met across foundational, reflexive and practical competency levels.

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Environment A commitment to sustainable water infrastructure Substantial investment and decades of international experience has placed global engineering consultancy firm SMEC as a frontrunner in ensuring the continued development and upgrade of water infrastructure in Africa. The international SMEC Group water division is undertaking projects worldwide to the value of an estimated US$40mn, and SMEC general manager for water and environment, Pula Herath points out that the division boasts a geographical footprint across 13 countries in Africa. "Water is a scarce resource worldwide, nowhere more so than Africa. To ensure that this precious commodity is efficiently managed on a local level, SMEC places a high priority on localisation. It is one of only a few international consultancies that has established a permanent presence in Africa, thereby ensuring a better overall offering to the local market," he explained. Herath indicated that the SMEC water division specialises in three main areas of water management, namely; water resources and catchment management, conveyance and treatment. "Water resources and catchment management involves planning, developing, distributing and managing the optimum use of water resources, while conveyance involves the transport of water from dams to facilities where water is treated, stored and distributed to consumers.� In South Africa, Herath noted that the SMEC water division has undertaken the bulk of its work on water optimisation and rehabilitation. "Although South Africa has a solid water infrastructure, wastage is a major concern, with up to 35 per cent of all water supply being unaccounted for on a continuous basis." Herath explained that unaccounted for water is water that the authority pays for, but does not generate revenue from. "This can result from leakages or poor management strategies, and has a considerably negative environmental and financial impact on communities. As a result, SMEC is committed to assisting local authorities in water delivery optimisation." Rehabilitation of water pipelines in Johannesburg and Soweto has also been a focus for SMEC, whereby the company identifies and rectifies leakages. With focus on dirty water treatment, Herath notes that SMEC is currently in the process of developing a plan for upgrading the largest sewerage plant in Kenya. Looking further afield, the company is also currently involved in Australia’s three largest desalination plants in Adelaide, Melbourne and Sydney respectively. With economic growth and investment in Africa is increasing at a rapid rate, Herath believes that the private sector will play a fundamental role in funding water infrastructure projects that many governments cannot afford, especially as the clean supply of drinking water becomes a scarce and valuable resource as demand increases.


African Review of Business and Technology - September 2013

SMEC general manager for water and environment, Pula Herath

Water is a scarce resource worldwide, nowhere more so than Africa. To ensure that this precious commodity is efficiently managed on a local level, SMEC places a high priority on localisation. It is one of only a few international consultancies that has established a permanent presence in Africa, thereby ensuring a better overall offering to the local market.� - SMEC general manager for water and environment, Pula Herath

"Private investment is essential in ensuring that African infrastructure continues to develop towards international standards. Water management has become an integral aspect of everyday life for both private citizens and businesses, and SMEC combines its substantial water design and engineering capabilities to help efficiently address the demand for sustainable long term water management," he said.

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Consultancy South African engineering continues to impress Indonesian energy operatives


ope access specialist Skyriders and plant care engineering consulting expert Carab Tekniva have successfully completed the inspection of a 210-metre high smoke stack and various boiler pressure components at the Paiton power station in Indonesia. Skyriders specialises in providing rope access inspection, non-destructive testing and work-at-height maintenance solutions to numerous industries, while Carab Tekniva is a multi-faceted engineering software solution and service provider that specialises in plant care and physical asset management. The two South African-based companies have undertaken inspection and maintenance work at the Paiton power station through a joint partnership since 2004, and recently completed the latest project on the smoke stack and the 700 MW Unit 7 boiler. International inspection Skyriders marketing manager Mike Zinn believes that the two companies continue to be selected to undertake inspection work on international projects such as Paiton, due to the fact that they offer a world class service at highly competitive prices. "Although similar services are provided by companies based in Europe, North America and Australia, Skyriders and Carab Tekniva provide the same internationally recognised and accredited offering at a rate that is substantially lower than our international competitors, without ever compromising on safety

or quality," he explains. Zinn noted that a team of six rope access technicians and boiler inspectors from Skyriders worked together with a boiler engineer and engineering technician from Carab Tekniva to undertake inspections on the wall blowers, water wall tube, superheater, reheater tubes and screen tubes, in addition to other mechanical components Paiton power station located inside the boilers and the smoke stack. "This was a highly demanding project that had to be completed within ten days. Skyriders was responsible for all physical inspection work, while Carab Tekniva captured and analysed the data, before dictating the required scope of work and advising on a maintenance strategy. As a result of a strong working relationship and mutual understanding between the two companies, the project was successfully completed within the specified timeframe," he said.

The smoke stack at Paiton power station


African Review of Business and Technology - September 2013

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Consultancy Carab Tekniva boiler engineer Jan Hendrik Fourie, who acted as project manager for the duration of the inspection process, indicates that the company's Boiler Health Care Programme software solution was utilised to monitor the condition of the boiler components, and to proactively monitor the condition of the plant through trend analysis in order to implement maintenance strategies. "What's more, the solution also provides a legacy for future engineers to build onto and to work from." Explaining erosion Fourie explains that the wear experienced in Indonesian boilers is mostly due to rubbing or fretting of tubes, as a result of retaining lugs or support plates that have broken loose, causing the pressure parts to fret during operation. “Compared to South African boilers where fly ash erosion and sootblower erosion are large contributors to tube failures, the coal used by Paiton has a far lower fly ash content compared to South African coal. This means that less sootblowing is required on the superheater, economiser and reheater elements, which decreases tube material loss rates considerably due to less sootblowing. The calorific value of the Indonesian coal is higher than South African coal, with the result being that coal consumption is less in their boilers to produce the same amount of heat,� explains Fourie. The humid climate and close proximity of the Paiton power station to the ocean proved to be challenging for the inspection team, noted Skyriders’ rope access team leader Progress Malang. "The close proximity to the ocean results in a large amount of corrosion that has to be dealt with on a regular basis, while the high humidity is physically draining. These challenges were, however, overcome thanks to the in-depth experience and commitment from the entire team." Although the language barrier also had an impact on effective communication, Malang points out that this bridge was gapped with the assistance of a translator, in addition to two Indonesian inspection assistants. Skyriders and Carab Tekniva have formed a unique partnership that has provided value-added services to various power generation projects worldwide for more than nine years, and Zinn is confident of the potential future outlook for the partnership moving forward. "Skyriders and Carab Tekniva have proven capabilities that have resulted in both companies being commissioned to undertake regular inspection and maintenance services for projects across Africa and Asia. The economic boom taking place in both these regions has resulted in the demand for more energy, and ultimately more power plants. Having established an unrivalled track record in this industry, I am optimistic of achieving measurable growth in the long term future," he concluded.


African Review of Business and Technology - September 2013

Paiton power station structural steel

Paiton power station, Probolinggo, Indonesia

Skyriders technician working on the Paiton smokestack

Aerial view from Paiton power station smoke stack

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S23 ATR Sep 2013 Solutions E_Layout 1 22/08/2013 19:08 Page 126


Helping hospitals improve hygiene A Healthy Workplace Project introduced to South Africa has been designed to educate and encourage employers to help their staff reduce the risk of cross contamination of germs in typical office hot spots such as desks, boardrooms, reception canteens and other high traffic areas, through a simple wash, wipe and sanitise protocol that enhances hand hygiene in the workplace. Now, due to the fact that hospitals are far more specialised working areas with greater exposure to germs and bacteria, KCP has developed a custom-made Healthy Hospitals Project. KCP South Africa end-user manager Nthato Malope said, "Patient secondary infections is a growing problem within South African hospitals, usually as a result of unhygienic practises and alarmingly poor personal hygiene habits. The issue of patient infections in health care facilities is a growing scourge and is very unfortunate, and there are many alarming statistics coming out from both state and private healthcare facilities, where

Patient secondary infections is a growing problem in African hospitals

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African Review of Business and Technology - September 2013

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