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Europe â‚Ź10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK ÂŁ7, USA $12
May 2012
African Review of Business and Technology
P45
May 2012
The optimal standby power supply
Volume 47 Number 13
P38
Materials, movement, storage, control and protection www.africanreview.com
Finance:
Automotive:
Construction:
Nicky Newton-King, at the Johannesburg Stock Exchange P24
Protecting commercial vehicles and their loads P40
Analysis of global market demand and dynamics P56
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Ethiopian Airlines has joined Star Alliance. Connecting me to 25 global airlines. Now collecting miles is easier than running them, even for me. I’ve earned it.
H a i l e Ge b re s e l a s s i e 4 times world champion athlete, holder of 27 world records and Star Alliance Gold Status
staralliance.com
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UP FRONT www.africanreview.com
Editor’s Note
Europe €10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12
May 2012
P45
The optimal standby power supply
I
nvestment is the trade challenge for Africa’s capital markets. On big capital flows and global investments, strategy perspectives and ecosystems, economic activity is dependent. Now the African market, truly increasingly competitive, is going to become a more meaningful part of the global investment landscape. African contractors and engineers, equipped and local, and yet connected to industry beyond the continent, are poised to exploit investor interest and demonstrate leadership. Associated with high-quality service and manufacture, professionalism and fast growth, the African corporate narrative compares favourably with global counterparts. Looking for the benefit from business investment is easier as the global financial network allows work and finance to converge, securely, with indigenous innovators and entrepreneurs. Perhaps the technical advances made this past decade have supported such linkage, but the capacity and appetite for business, still largely untapped across the continent, counts for so much more. This issue of African Review of Business and Technology aims to represent the improving commercial prospects amongst the continent’s business communities, in relation to easing of investor concerns.
P38
Materials, movement, storage, control and protection Finance:
Automotive:
Construction:
Nicky Newton-King, at the Johannesburg Stock Exchange P24
Protecting commercial vehicles and their loads P40
Analysis of global market demand and dynamics P56
Cover picture: The viability of commerce and industry, the success of sub-sector activity such as materials handling, depends on investor confidence (Photo: APC)
Andrew Croft, Managing Editor
Contents
REGULARS 04 Agenda:
14 Bulletin:
Commercial innovations and initiatives
68 Solutions:
Reporting on events for around the continent
Key products offered to African industry
P22 FEATURES 22 Economy and Finance How Ghana gains from oil and gas; Nicky Newton-King, head of Johanesburg Stock exchange; and emerging technologies for remittances
34 ICT Why e-mail archiving and e-mail backup are not the same, and why your business needs both
38 Materials Handling Warehouse-optimising designs, material handling equipment, and racking systems
P58
40 Automotive Limiting theft of, and from, light commercial vehicles; and tyres as critical safety components
45 Power Recent developments affecting choices of uninterruptible power supply units
52 Manufacturing The industry reliance on compressors to keep production lines flowing
56 Construction Rising demand for infrastructure in all forms; regulatons for concrete paving; industrial safety netting; and innovations at Water Africa and West Africa Building and Construction Audit Bureau of Circulations Business Magazines
66 Mining Investment opportunities in West African mining operations at WAMPEX Special Projects Manager: Jane Wellman Email: Jane.wellman@alaincharles.com
Managing Editor: Andrew Croft andrew.croft@alaincharles.com
China: Wang Ying Tel: +86 10 8472 1899 Fax: +86 10 8472 1900 Email: ying.mathieson@alaincharles.com
Editorial and Design team: Bob Adams, David Clancy, Prabhu Dev, Immanuel Devadoss, Ranganath GS, Prashant AP, Genaro Santos, Zsa Tebbit, Ewan Thomson, Nicky Valsamakis and Julian Walker
India: Tanmay Mishra Tel: +91 80 65684483 Fax: +91 80 40600791 Email: tanmay.mishra@alaincharles.com
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Publisher: Nick Fordham
Russia: Sergei Salov Tel: +7495 540 7564 Fax: +7495 540 7565 Email: mne@acpmos.ru South Africa: Annabel Marx Tel: +27 218519017 Fax: +27 46 624 5931 Email: annabel.marx@alaincharles.com UK: Steve Thomas Tel: +44 20 7834 7676 Fax: +44 20 7975 0076 Email: stephen.thomas@alaincharles.com USA: Michael Tomashefsky Tel: +1 203 226 2882 Fax: +1 203 226 7447 Email: michael.tomashefsky@alaincharles.com
Head Office: Alain Charles Publishing Ltd, University House, 11-13 Lower Grosvenor Place, London SW1W 0EX, United Kingdom Tel: +44 207 834 7676, Fax: +44 207 973 0076 Middle East Regional Office: Alain Charles Middle East FZ-LLC, Office 215, Loft No 2/A, PO Box 502207, Dubai Media City, UAE, Tel: +971 4 448 9260, Fax: +971 4 448 9261 Production: Nick Salt, Donatella Moranelli, Nasima Osman, Jeremy Walters and Sophia White E-mail: production@alaincharles.com Subscriptions: circulation@alaincharles.com Chairman: Derek Fordham
Printed by: Wyndeham Group US Mailing Agent: African Review of Business & Technology, USPS. No. 390-890 is published 11 times a year for US$140 per year by Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London SW1W 0EX, UK. Peridicals postage paid at Rahway, New Jersey. Postmaster: send address corrections to Alain Charles Publishing Ltd, c/o Mercury Airfreight International Ltd, 365 Blair Rd, Avenel, NJ 07001.
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Serving the world of business
African Review of Business and Technology - May 2012
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NEWS
Agenda / North Kosmos gains Mauritanian licenses Oil and gas exploration and production company Kosmos Energy has signed three Production Sharing Contracts (PSCs) with the Government of Mauritania for Blocks C8, C12, and C13 offshore Mauritania. The blocks, which are contiguous, range in water depth between 1,600 and 3,000 metres, and have a combined acreage extent of approximately 27,200 square kilometres. Kosmos will be operator of the three blocks with a 90 per cent interest. The national oil company, Societe Mauritanienne des Hydrocabures (SMH), will hold a carried interest of 10 per cent. In the initial exploration phase under each of the contracts, Kosmos plans to acquire 2D and 3D seismic data. First drilling is expected as early as 2014. The execution of the PSCs represents Kosmos’ initial entry into Mauritania and significantly expands the Company’s exploration footprint. Brian F. Maxted, Chief Executive Officer, commented, “The new blocks captured reside in the proven offshore Mauritania salt basin and include the outboard fairway of the under-explored Upper Cretaceous stratigraphic play concept, Kosmos’ core exploration theme.”
Elements for wafer-level cameras Nemotek Technologie, a Moroccan manufacturer of customised wafer-level cameras, has introduced the world’s first two element wafer-level camera, Exiguus H12-A2. Leveraging the capabilities of its two element lens, Exiguus H12-A2 features high resolution and low distortion all in an ultra-small form factor. Specifically, the lens overall distortion is lower than 0.5 percent resulting in a sharper and clearer image than a traditional one element lens. This makes the camera ideal for mobile, laptop and even gaming applications. The Exiguus H12-A2 offers sophisticated camera functions, such as auto exposure control, auto white balance, black level
calibration, noise reduction, flicker detection and avoidance. Moreover, the camera features colour correction, colour saturation, lens shading correction, software reset as well as chrominance control and maintains the ability to withstand extreme temperatures. “The Exiguus H12-A2 produces extraordinarily clear, sharp pictures which make it the perfect choice for a wide range of applications. With this new achievement, we are able to further showcase our position as the industry’s leader in innovation and design,” said Hatim Limati, vice president of sales and marketing for Nemotek Technologie.
Success at show for broadcast firm ATG Broadcast, a broadcast systems integrator, reports a positive and successful CABSAT 2012. The event, which was held in Dubai, in the UAE, at end-February/early March 2012, attracted more than 750 exhibiting companies from 55 countries and was the biggest electronic media event ever staged in the Middle East and North Africa (MENA) region. “We have seen CABSAT grow in size and importance over the years, reflecting the highachieving market which it addresses,” comments ATG Broadcast Managing Director Graham Day. “This year’s show was an excellent one for us as a venue for meetings with new and existing MENA region clients. Visitor traffic was very high quality, both to discuss potential new systems integration projects and to talk through the opportunities raised by the latest technical advances in workflow structure, content manipulation, analysis and distribution.”
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African Review of Business and Technology - May 2012
Growing demand for satellite systems
S
atellite and wireless communication system integrator Hiltron GmbH reports growing demand for satcom infrastructure and services in the Middle East and North Africa (MENA). Exhibiting at CABSAT 2012 in Dubai, the company held discussions with new and existing clients in the broadcast and teleportservice-provision sectors.
Hiltron’s HSACU satellite newsgathering antenna controller
“CABSAT 2012 itself proved an excellent show,” comments Hiltron GmbH Managing Director Michael Schiestl. “Many of the world’s largest satcom equipment manufacturers attended as exhibitors, attracting a lot of serious buyers from Morocco right across to Saudi Arabia and Iraq. With 60 per cent of the world’s oil reserves, including eight of the 12 OPEC member countries, the MENA region is economically rich and home to about six per cent of the world’s population. Its geographical area is huge, making satellite networking a highly efficient option for point-to-point communication and direct-to-home broadcasting.” CABSAT 2012 also provided a venue for the MENA introduction of Hiltron’s HSACU satellite newsgathering antenna controller. Designed for integration into SNG trucks or for refurbishment of existing SNG antenna control systems, the HSACU is housed in a compact rackmountable chassis and provides efficient control of three-axis motorised antennas up to 2.4 metres in diameter. Azimuth, elevation and polarisation control are performed entirely in software.
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THE KINGS OF HAULING. JUST GOT BETTER.
Operators know the reputation of Volvo articulated haulers. Heavy duty frames and bodies make for a long life whatever the conditions. The F-Series features low emission engines and Automatic Traction Control as standard, reducing fuel consumption, tire wear and operator fatigue. Powerful hydraulics raise loaded bodies, even on steep downhill gradients, while strong brakes always keep things in check. Volvo’s F-Series haulers: power when the going gets tough. www.volvoce.com
Albarajoub Engineering Co. SUDAN Tel: +249 183 77 84 13 E-mail: info@albarajoub.com
Equatorial Business Group Pvt Ltd Co ETHIOPIA Tel: +251 911 457758 E-mail: ebg-eab.msm@ethionet.et
Auto Maquinaria Lda Auto Sueco (Angola) SARL ANGOLA Tel: +244 9 1250 7464 E-mail: adavid@autosueco.co.ao
Ghabbour Egypt EGYPT Tel: +2 02 42155314 E-mail: aelgammal@ghabbour.com
Auto Sueco Ltd KENYA UGANDA Tel: +254 713 974 808 E-mail: jose.moreira@auto-sueco.co.ke
Leal Equipements Compagnie LTEE MAURITIUS, MADAGASCAR, SEYCHELLES Tel: +230 207 2100 E-mail: djauffret@lec.lealgroup.com
TANZANIA Tel: +255 753 631 442 E-mail: p.pinto@autosueco.pt
Nordic Machinery TUNISIA Tel: +216 71 409 260 E-mail: khaled.haddad@nordic.tn
A. Yazbeck and Sons Ltd SIERRA LEONE Tel: + 232 22 232 324 E-mail: joe@ayazbeckandsons.com
Séra SENEGAL/MALI/ MAURITANIA Tel: +221 33 859 07 70 E-mail: contact.volvo@sera.sn
Babcock Equipment BOTSWANA, NAMIBIA, SOUTH AFRICA, ZIMBABWE Tel: +27 11230 7300 E-mail: enquiries@babcock.co.za
SMT Multi-Tech Services LTD BENIN/TOGO Tel: +229 21 381438 E-mail: info@multitech-bj.com BURKINA FASO Tel: +233 30 283351-58 E-mail: multitech@multitech-gh.com GHANA Tel: +233 30 283351-58 E-mail: multitech@multitech-gh.com LIBERIA Tel: +231 63 20181 E-mail: multitech@multitech-gh.com
ZAMBIA Tel: +260 2 611 693 E-mail: garthr@babcock.co.zm COGETP ALGERIA Tel: +213 20 36 0216 E-mail: kamel.saidani@cogetp.com
SMT BURUNDI Tel: +32 2 724 90 74 E-mail: info@smt-europe.eu CAMEROON Tel: +237 70 74 24 52 E-mail: info@smt-cameroun.com DEM. REP. OF CONGO Tel: +243 39 99 93 46 37 EUROPE Tel: +32 2 724 90 74 E-mail: info@smt-europe.eu CÔTE D’IVOIRE Tel: +225 21 75 16 27 E-mail: info@smt-ci.com NIGERIA Tel: +234 813 778 38 44 E-mail: info@smt-nigeria.com REP. OF CONGO (BRAZZAVILLE) Tel: +242 06 953 51 52 E-mail: info@smt-congo.com RWANDA Tel: +32 2 724 90 74 E-mail: info@smt-europe.eu Volvo Maroc S.A. MOROCCO Tel: +212 22 67 8500 E-mail: ilyas.essaadi@volvo.com
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NEWS
Agenda / East Etihad flies passengers to Nairobi Etihad Airways’ has commenced passenger flights to Kenya, to Jomo Kenyatta International Airport (NBO) in Nairobi, with a new daily, two-class A320 service - the airline’s first passenger service to East Africa and a critically important step in expanding its presence in Africa. The airline began dedicated cargo services to Nairobi in March 2009 and will continue to operate five freightonly flights per week. The combined capacity of passenger and cargo aircraft
will allow the airline to transport 340 tonnes of cargo each week. Etihad Airways President and Chief Executive Officer James Hogan said, “We are delighted to introduce Etihad Airways to East Africa. This year will see considerable growth for us within Africa as a whole, as we observe strong and emerging markets across the continent. “In particular, this new route services the considerable and growing flow of people and capital between Kenya and North Asia,
Kenyan TV signs for satellite service Nairobi-based Kenya Broadcasting Corporation (KBC) has signed a multi-year agreement with Intelsat to distribute broadcast programming from production facilities to terrestrial base stations around the country to service its newly-launched digital terrestrial television (DTT) network. The signals will then be transmitted over the terrestrial airwaves to homes around Kenya. KBC will use capacity on the Intelsat 709 satellite and transition to the new Intelsat 22 satellite once it enters service. KBC will join Addis Ababa-based ETHIO Telecom, which signed a multi-year, multitransponder deal for new capacity on Intelsat 709, with follow-on service on Intelsat 22. As previously announced, ETHIO Telecom plans to use the capacity for a new government voice and data network, and for the expansion of a distance learning network that supports high school education in Ethiopia. For over 45 years, Intelsat has been delivering information and entertainment for media and network companies, multinational corporations, Internet Service Providers and governmental agencies. Intelsat 22 will also be used by Etisalat UAE, a leading telecommunications services provider in the Middle East, which signed a multi-year, multitransponder agreement for capacity on Intelsat 22. As previously announced, Etisalat will use Intelsat 22 to expand its broadband and GSM backhaul services in the Middle East, Africa, Europe and central Asia.
COMESA commits to Kazungula The Common Market for Eastern and Southern Africa (COMESA) has approved the construction of the Kazungula Bridge on the Zambezi River between Zambia and Botswana. According to COMESA secretary general Sindiso Ngwenya, the construction of the bridge will be financed by the African Development Bank (AfDB), and the Japanese International Cooperation Agency (JICA) - while the remaining funds will be
6
provided by the two governments. “The cost of construction will be financed by AfDB, JICA and the two governments. The Kazungula Bridge is important to COMESA because it connects Zambia, the Democratic Republic of Congo (DRC), Botswana and the rest of the countries in the southern African region,” he explained. Nawa Mutumweno
African Review of Business and Technology - May 2012
with major Chinese investment in Africa generating passenger demand in both directions. “We expect to see strong loads to China, including our new destinations - Chengdu and Shanghai - and, of course Beijing, though the schedule allows sub-four hour connectivity to key destinations across North Asia, South East Asia, the Indian Subcontinent and Australia.” The A320 aircraft has 16 Pearl Business class and 120 Coral Economy class seats.
Improving capacity at Kilimanjaro Airport
I
n the next few years Kilimanjaro Airport (KIA) is being upgraded and expanded, with a financial injection from the Netherlands. The airside of the airport - runway, taxiways and aprons - is being overhauled and resurfaced. A new taxiway is being built to increase the capacity of the airport, with an upgraded and expanded terminal building to accommodate the growing numbers of tourists into Northern Tanzania. The project is expected to cost in total around Tsh 57.5bn (US$364mn).
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NEWS
Agenda / South SGS acquires Metlab Inspection, verification, testing and certification company SGS has completed the acquisition of Metlab (Pty) Ltd., Boksburg, a metallurgical testing laboratory in Southern Africa. The company has a long history of providing destructive and non-destructive metallurgical testing and is renowned for its replication, hardness and chemical test technicians as well as its ability to conduct specialised testing on client sites. Metlab serves the heavy engineering, power engineering, testing & inspection, heat transfer, piping and tubing, steel mill and steel fabrication industries. Founded in 1982 and privately owned, Metlab employs staff in excess of 40, including metallurgical engineers, laboratory technicians and operators. It generated 2011 revenues in excess of ZAR 21mn (US$2.7mn). “Metlab is an exceptionally well run business and this acquisition will solidify SGS’ metallurgical laboratory testing footprint globally and provide access to key South African industrial accounts. This acquisition supports SGS’ growth in the destructive and nondestructive testing Southern African markets.” said Chris Kirk, CEO of SGS.
Uniting purchasers and suppliers The Chartered Institute of Purchasing & Supply (CIPS) is set to expand its presence in Africa and launch CIPS Africa - with all 16,000 CIPS members across Sub-Saharan Africa brought together to be supported initially from the CIPS Southern Africa office, based in Pretoria. This new initiative will be led by CIPS Africa Managing Director Andre Coetzee. CIPS is a global centre of excellence on purchasing and supply management issues. CIPS has over 66,000 members in 150 different countries, including senior business people, high-ranking civil servants and leading academics. David Noble, CEO of CIPS, said, “There is little doubt that Africa is growing exponentially as an economic
centre. Good procurement and supply is increasingly being recognised as fundamental to this success and we have already seen a number of African countries mandate CIPS qualifications in the public sector arena. This move will ensure that our experience and on the ground expertise will benefit all our members, bringing them an even greater CIPS.” Andre Coetzee said, “We are delighted to be making this announcement and underlining our commitment to the African region. We strongly believe by offering local support to all members across the continent. We will create a stronger and more powerful procurement and supply community.”
Huawei supports better broadband Early in April 2012, at the Gallagher Estate in Midrand, communications technology firm Huawei launched a solution that will enhance both fixed line and mobile data connectivity. The solution known as the Ubiquitous Ultra-broadband Network Architecture (U2Net), will increase the capacity of existing bandwidth connections from transmitters to consumers making the transfer of data faster. According to Mr. Song Peng, Vice-President of Huawei in East and Southern Africa Region and CEO of Huawei South Africa, this is a solution that network providers have long been waiting for in order to address current capacity issues where broadband is concerned. Consumers will now have increased access to IP telephone services and quality high definition television (HDTV) and video conferencing. “We believe our U2Net solution will deliver value for all our stakeholders, and play an enabling role in driving economic growth throughout South Africa,” said Mr. Peng.
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African Review of Business and Technology - May 2012
Siemens launches Power Academy in eMalahlenie
T
he Siemens Power Academy, an R8mn (US$1mn) training investment, was officially launched in the Mpumalanga Province, in eMalahleni, early in April 2012. The academy provides instrumentation and controls (I&C) training focused on fossil power generation to learners already in the energy industry working for power utilities, such as Eskom. Locating the centre in Mpumalanga was a strategic move as most of South Africa’s power stations are located in that province. “We have to centralise our Skills Transfer Base to be close to our customers, also for operations and maintenance purposes as availability and reliability is currently one of our Customers main focuses,” says Ute Menikheim, the head of the Energy Sector for Siemens Africa. The academy provides training for major customers like Eskom in South Africa and also major customers from Africa’s power producers in countries such as Botswana, Mozambique, Tanzania and Zimbabwe. “Other Countries, i.e. Turkey, also utilise the Siemens Power Academy”, reports Chris Waddicor, Business Unit Leader at Siemens, who oversees the academy’s activities. “Training scheduling for 2012 is supported extensively as our customers value the skills and training offered by the academy.” The Siemens Power Academy complete training portfolio comprises the I&C-System SPPA-T3000 and the SPPA-T2000. Information offered includes basic knowledge and fundamentals of automation and I&C to detailed engineering, maintenance and operation skills in power and oil and gas industries. The training portfolio also comprises process optimisation and turbine controls.
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NEWS
Agenda / West Drilling on the "golden" coast Bauer Resources Ghana Ltd., a subsidiary of the German Bauer Resources GmbH and a company of the Bauer Group, was founded almost exactly two years ago. The company mainly carries out deep, large-calibre drilling for well, hydrogeological exploration and dewatering bore hole projects in the former "Gold Coast". After Bauer Resources Ghana Ltd. started in April 2010, its range of operations expanded considerably, so investments in new equipment were necessary soon: Alongside an existing RB 40 universal drilling rig, the company also invested in additional drilling rigs, i.e. an RB 25 and a Klemm KR 806-2, in compressors, four-wheel drive vehicles, service trucks and drilling equipment. Today the company is able to respond flexibly to customers' wishes. Following the successful sinking of nine-inch hammer bores down to a depth of 760 metres in 2010, operations now also include horizontal dewatering bore holes down to 130 metres, blast-hole drilling and underground supply drilling, in some cases as inclined bores, for mining companies. Bauer Resources Ghana Ltd. has recently also had a number of enquiries for projects from other West African countries, including Senegal, Ivory Coast, Mali, Liberia and Sierra Leone. The subsidiary’s work is aided by the collaboration with other Bauer Group companies of course, including Bauer Technologies South Africa (PTY) Ltd, the GWE Group, Bauer Maschinen GmbH, PRAKLA Bohrtechnik GmbH and Bauer Spezialtiefbau GmbH. One current project being carried out by Bauer Technologies South Africa (BTSA) – sinking 11 deep wells down to a depth of 650 metres in Senegal – was acquired by Bauer Resources Ghana Ltd., and is being supported by personnel and equipment resources from Ghana. In the core business within Ghana, 2012 will bring new challenges, which is why the company also assigns the highest priority to training of specialist personnel. With support from Bauer Group specialists from South Africa and Germany, Bauer Resources Ghana Ltd. has already had some success in that respect.
Funds for Edum Banso Gold Project Norman Cay Development's wholly-owned subsidiary, Discovery Gold Ghana Limited, recently reached agreement with North Springs Resources Corp. to sell up to a 35 per cent interest in the Edum Banso Gold Project in Ghana, Africa - with one consequence being the funding of a multi-phase US$1,000,000 work commitment to the project. The Edum Banso concession covers 20.60 sq-km located approximately 35km northwest of city of Takoradi in the southeastern portion of Ghana’s historic Ashanti Gold Belt. The concession is situated less than one mile from the border of the HBB Father Brown/Adoikrom open pit gold deposits currently being mined by Golden Star Resources. Golden Star expects to produce 180,000 oz. of gold and generate over $280mn in gross revenue per year per from their HBB Father Brown/Adoikrom operations. Other gold mines in the area include Iduapriem (185,000 oz./year - 4.9mn oz. total) and Obuasi (381,000 oz./year - 33.4mn).
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African Review of Business and Technology - May 2012
Rock and core sampling in Burkina Faso
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eological and mining operations in West Africa have gained new capacity with the opening of a new Mobile Sample Preparation Unit (MSPU) by SGS in Ouagadougou, Burkina Faso. The MSPU expands our rock and drillcore sample preparation capacity in Burkina Faso, ahead of our major new laboratory complex being built in Ouagadougou.
The Ouagadougou Mobile Sample Preparation Unit adds an additional 600 samples/day capacity to mineral operations in Burkina Faso Extending the network The MSPU adds an additional 600 samples/day capacity. Coupled with this increase in sample preparation capacity has been a 60 per cent increase in fire assay capacity at our Ouagadougou laboratory with a retooling of the fire assay lab. The new MSPU is the latest addition to our strategically located fleet of MSPU units in four continents. Our MSPUs make use of industry standard equipment and employ staff trained using SGS global method protocols. SGS brings over 30 years of on-site and commercial laboratory experience to the design of our mobile laboratories. The new Ouagadougou MSPU complements an on-site laboratory network in Africa that includes Cote d’Ivoire, Republic of Congo, Ghana, Guinea, Mali, Mauritania, Senegal, Sierra Leone and Tanzania. SGS’ African capabilities enhance the company’s network of over 140 commercial, on-site and mobile geochemistry laboratories globally.
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NEWS
Events / 2012 June
July
6-8
15-17
West African International Mining & Power Exhibition (WAMPEX)
Africa's Big Seven
Accra, Ghana www.exhibitionsafrica.com
Johannesburg, South Africa www.exhibitionsafrica.com 17-19
13-14
Power-Gen Africa
West & Central Africa Com
Johannesburg, South Africa www.powergenafrica.com
Dakar, Senegal wcafrica.comworldseries.com
17-20
19-22
Africa Mining
International Mining & Energy
Johannesburg, South Africa www.terrapinn.com
Lusaka, Zambia www.zimeczambia.com
17-20
25-29
Africa Ports and Harbours Johannesburg, South Africa www.terrapinn.com 25-29
Africa Rail
Sudan International Education and Training Exhibition Khartoum, Sudan www.expoteam.info
August
Johannesburg, South Africa www.terrapinn.com
15-18
27-28
Johannesburg, South Africa www.ecoafribuild.co.za
Libya Infrastructure & Rebuild Conference Dubai, UAE www.arabianreach.com
EcoAfribuild
15-18
InterBuild Africa Johannesburg, South Africa www.interbuildafrica.co.za
World Cocoa Conference to take place in Côte d’Ivoire
T
he International Cocoa Organization (ICCO) has scheduled its first high-level World Cocoa Conference, to take place in Abidjan, Côte d’Ivoire, the world’s largest cocoa producing country. Certain to be of interest to all stakeholders in the global cocoa value chain, the event will address the most important issues facing cocoa in the second decade of the 21st century. To be hosted by the Government of Côte d’Ivoire, the World Cocoa Conference will be opened officially by His Excellency Dr. Alassane Ouattara, President of the Republic of Côte d’Ivoire, in the presence of his peers, heads of state from cocoa producing countries in the region and beyond. In addition, the Conference will involve chief executives and senior officials from the world’s major cocoa and chocolate companies and will feature presentations from speakers representing the highest expertise in cocoa production, processing, trade, banking, insurance, shipping and many other fields in the world’s cocoa chain. The World Cocoa Conference takes place 19-23 November 2012, at the Hotel Ivoire InterContinental in Abidjan. www.icco.org
Construction on show From 15-18 August 2012, at the Expo Centre, Nasrec, in Johannesburg, South Africa, the Star Interbuild Africa 2012 exhibition and co-locating shows are set to deliver outstanding value and quality for all stakeholders involved. The 2012 shows will provide exhibitors with an outstanding opportunity to meet new and existing customers, launch new products, generate sales, enhance company image and build brand awareness, interact with distributors, and gain competitive insight. When last held in
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2010, the event attracted 8,886 visitors - an increase of 12.7 per cent over the previous show - from all over the African continent as well as from Europe, Asia and Australia. The majority of visitors were top decisionmakers from building-related industries. Star Interbuild Africa 2012 will focus on the latest innovations, products and developments across the broad sectors of the building services and construction arena. The exhibition will incorporate all aspects of interior and exterior
African Review of Business and Technology - May 2012
building design and products across residential, commercial and industrial developments in addition to a wide spectrum of the hardware and allied products industries, and a showcase for the woodworking industry including timber processing, woodworking machinery, complementary equipment, finishes and fittings, and furniture manufacturing supplies. www.interbuildafrica.co.za
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NEWS
Agenda / Events Awarding a successful and sustainable strategy Strategy consultants Roland Berger have presented the seventh Best of European Business awards, with a focus on ‘Successful and sustainable corporate strategy in Africa’. Accolades went to BASF, Commerzbank and Linde, among others. “No other German company has such deep roots on the African continent as Siemens”, said Siegmar Proebstl, CEO of Siemens Africa, at the award ceremony in the Deutsches Historisches Museum in Berlin. Over 150 years ago, Siemens was already supplying telegraph engineering and generators to Africa, and nowadays its entire product portfolio is represented in Africa. According to Proebstl, the company enjoys an outstanding reputation everywhere. “Bound up with this long tradition is a story of partnership and shared development with Africa,” he said - adding that the main priority for German business in Africa was to deploy German expertise, technology and standards in the right places.
CEO of Roland Berger, Martin C. Wittig, handing over the award to Siegmar Proebstl
“The growth potential for the region is enormous. Africa should be viewed as up there with the BRIC (Brazil, Russia, India and China) countries – the difference being that Africa is an entire continent”, said Proebstl. Siemens now employs 3500 people at 13 locations on the continent. “When choosing our winners we attached great importance to their exemplary and responsible contribution to stabilizing and further developing African societies”, said Martin C. Wittig, CEO of Roland Berger, at the award ceremony. “This includes the consolidation of economic relationships and partnerships on an equal footing.” Wittig justified the choice of Africa as the topic for this year’s BEB German Economics Minister Philipp Rösler used his speech to stress the changes in Africa and the opportunities these bring for German businesses, “German businesses have a great deal to offer the African market, where their high-quality products and services are highly regarded.” He said an even closer integration of market liberalisation and economic commitment was in the mutual interests of both Africa and Germany. African Review of Business and Technology - May 2012
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NEWS
Bulletin / Science A new era in European-African scientific collaboration
specific quality of coal, mineral process
The recent adoption by the European
industry demands to address the focal issue
Parliament of Written Declaration 45 on
of coal sampling; “Our ongoing investment
Science Capacity Building in Africa has given
into research and development, in
practical effect to a vibrant Africa-EU
conjunction with our licensor Siebtechnik
partnership by supporting stronger
GmbH in Germany, is showing exciting
collaboration in radio astronomy projects -
results - Multotec has manufactured and
bringing the importance of research,
supplied sampling equipment under license
development and innovation into clearer
to Siebtechnik since 1987 and we have also
solutions provider Multotec is responding to
and tooling, design and application
focus and expanding the relationship
development trade fair will take place from
between African and Europe beyond the
10–12 October 2012 at the Gallagher
traditional emphasis on aid cooperation;
Convention Centre in Midrand, South Africa,
Written Declaration 45 highlights the value
in conjunction with the German/South
of research infrastructures in promoting
African Year of Science; the conference
human capital development, addressing
content will be expanded to address the role
societal challenges and facilitating inter-
of science in elevating current practice to the
regional cooperation - to harness the
domain of leading economies.
scientific and economic benefits of promote this through closer European-
Agreement on connectivity to support Mozambican science
African partnerships in radio astronomy,
The Mozambican Ministry of Science and
where there is considerable scope for further
Technology has signed a 20 year agreement
growth and market opportunities for both
to access international broadband fibre
continents.
connectivity on the SEACOM network to
increasing science capacity in Africa, and to
Europe and onwards to the rest of the world -
Multotec supports work on quality coal sampling
collaborated with the Commonwealth
and Education Network (MoRENet) and the
With the current drive to encourage coal
Scientific and Industrial Research
Government Electronic Network (GovNet),
suppliers, particularly those providing coal to
Organisation (CSIRO), Australia's national
which are government-led projects
Eskom in South Africa, to conform to a
science agency, to improve our products’
established to improve online public service
performance and achieve as near a bias-free
access and capability; the bandwidth will help
result as possible with our sampling
MoRENet to deliver reliable and cost-
equipment,” says Multotec’s Anton Henning.
effective, high-speed internet traffic to
with benefits to the Mozambique Research
member institutions whilst creating the
Tooling to empower manufacturing
platform to share education and research
AfriMold, the international mould-making
Education Networks (NRENs) around the
content with other Nationwide Research world - similarly, GovNet will be able to better support its mandate to improve eGovernment performance. GovNet currently interconnects government institutions at both central and provincial levels, with an aim to connect all state and government institutions through a single private data communications network.
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African Review of Business and Technology - May 2012
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An Africa free of malaria is an Africa full of possibilities. As one of the largest foreign investors in Africa, we know firsthand about the health and economic impact that malaria can have on a community and its workforce. That’s one of the reasons ExxonMobil is so committed to the fight against malaria. Huge progress has been made—malaria deaths have decreased by 20 percent over the last decade—but there’s a lot more to do. And ExxonMobil is committed to doing our part. So whether it’s exploring for or producing new energy supplies, delivering innovative petroleum products or investing in communities, ExxonMobil is developing more than oil and gas—we are helping to support Africa’s future. To learn more about our initiatives across Africa, please visit exxonmobil.com
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NEWS
Bulletin / Investment IMF focuses more on capacitybuilding and fund-raising
productivity and double the incomes of
the public and private sector share and
three million yam farmers in West Africa; the
exchange ideas and methods in the provision
The International Monetary Fund’s Africa
Yam Improvement for Income and Food
of engineering consultancy; ongoing
Regional Technical Assistance Center South
Security in West Africa (YIIFSWA) project -
consequences of the event’s hosting include
(AFRITAC South) is increasing its technical
which is supported by a US$12mn grant
taking advantage of opportunities to develop
assistance and related training activities
from the Bill & Melinda Gates Foundation, is
the sustainability of local firms through
across Southern Africa in the coming year,
being led by IITA in collaboration with the
partnerships with foreign firms, and the
following a two-day meeting recently held in
governments of Ghana and Nigeria, the UK’s
contribution of consulting engineers and
Mauritius, at which its Steering Committee
Natural Resources Institute (NRI), the
engineering specialists in spearheading
endorsed a results-based management
Alliance for a Green Revolution in Africa
socio-economic development in Africa.
framework for planning and monitoring the
(AGRA), and Catholic Relief Services (CRS) -
effectiveness of capacity-building activities,
will focus on increasing yields through
which target significant improvements in
better seed tuber supply and improving
Strategic aims to help least developed countries
public financial management, revenue
markets for the crop.
A high-level debate during the UNCTAD XIII quadrennial conference has enabled a focus
administration, financial sector supervision
Promoting Nigeria to the league of leading emerging markets
on opportunities to make the economies of
by 2016; Committee members and IMF staff are also committed to intensifying their
Lagos State Commissioner for Economic
(LDCs) stable and productive enough to
efforts to secure donor funding to close a
Planning and Budget, Mr Ben Akabueze,
graduate from the category; the high-level
US$19mn funding gap in order to scale up
explained that the theme of the 6th Lagos
session offers considerations on “graduation
the activities and speed up progress in
Economic Summit (Ehingbeti) - ‘From BRICS to
and structural transformation” – that is,
strengthening institutions in member
BRINCS: Lagos Holds the Key’ - underscores
durable economic changes such as
countries serviced by AFRITAC South.
the significant role of Lagos in the nation’s
broadening the variety and sophistication of
quest to join the leading emerging
goods and services produced so that LDCs
How media can support analysis of development
economies of the world, the aspiration of
are less vulnerable to external shocks, and so
Nigeria to work with the fast growing BRICS
that more numerous and better-paying jobs
After a decade of transformative economic,
(Brazil, Russia, India, China, South Africa)
are created.
research and development efforts, Africa is
economies, to change the acronym to BRINCS
poised to achieve its vision for progress - if
(including Nigeria); Mr Akabueze said that
policymakers, researchers, civil society and
four sectors - Power, Agriculture and Agro
Why investors should be bullish on Africa
the media are able to properly analyse and
Allied, Transportation and Housing and Urban
A decade ago, only one African nation held
communicate the continent’s ongoing
Renewal - would be showcased for their
opportunities for private investors, according
development challenges and successes;
capacity to generate economic activities and
to the International Finance Corporation,
that’s a key message delivered at the New
growth, and as enablers of economic growth
which contends now that the continent of
Partnerships for Africa’s Development
and activities in other sectors.
more than one billion consumers - home to
and real sector statistics of member countries
the world’s 48 least developed countries
some of the world’s fastest-growing
(NEPAD) Colloquium and Congress in Addis
economies including Ghana, Ethiopia and
current African leaders, including NEPAD
Engineering that drives sustainable development
founders and past Nigerian President
The 19th FIDIC GAMA 2012 Conference, held
opportunities for private equity investors
Olusegun Obasanjo and Ethiopian Prime
in Livingstone, Zambia, late April and early
seeking superior returns; “Africa is among the
Minister Meles Zenawi.
May 2012, along the theme of ‘Engineering as
last great frontiers for private equity,” said
a Driver of Sustainable Social and Economic
Stephen Murphy, Managing Director at
Investment to boost crops in Ghana and Nigeria
Development’, has been arranged as a forum
Citadel Capital, a private equity firm in the
where consulting engineers, government
Middle East and Africa with US$ 8.7bn in
The International Institute of Tropical
officials, construction equipment and
investments under control in 15 countries
Agriculture (IITA) and a host of partners have
materials suppliers and other stakeholders in
spanning 15 industries.
introduced a new initiative to boost yam
the engineering consultancy industry from
Ababa recently, attended by past and
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African Review of Business and Technology - May 2012
Tanzania - holds at least 21 countries with
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African Review of Business and Technology - May 2012
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NEWS
Bulletin / Investment Port and inland integration can boost African trade APM Terminals’ Director of Business Development and Infrastructure Investments for the Africa-Middle East Region, Reik Mueller recently described a new model for transportation planning and development in West Africa in which port and terminal operations shift focus from “container lifts” toward “integrated container transport solutions” . Speaking at the Africa Ports, Logistics & Supply Chain Conference, Mr. Mueller said, “Dry ports and inland markets are the untapped, overlooked opportunity markets of the future in Africa.” APM Terminals, a leading port and terminal operating company in Africa, currently operates nine port facilities in eight West African countries, as well as Morocco’s Tanger-Med port, and Egypt’s Suez Canal Container terminal and 35 Inland Services facilities. The Port of Luanda, in Angola, has benefited from an inland solution – an Inland Container Depot and Logistics Park
Although the International Monetary Fund has projected a 5.5 per cent economic growth rate for sub-Saharan Africa this year, and a 5.3 per cent increase for 2013, obstacles to trade, particularly concerning cargo movements between neighboring countries, will prevent the full benefit of such economic progress from being felt across the African population. Nearly one in three African countries is landlocked, accounting for 26 per cent of the continent’s landmass, and 25 per cent of the population, or more than 200mn people, Mr. Mueller noted, indicating that current population growth trends, including the development of population megacities distant from coastal locations will become powerful drivers of inland markets. “Ports will compete to become preferred gateways to move goods efficiently to inland cities and landlocked countries”, said Mr. Mueller, adding, “The future prosperity of these nations depends on access to the global economy and new markets; high-growth markets need inland infrastructure and logistics capabilities along development corridors. The ports that can provide the best and most efficient connectivity to those Inland markets will be the winners.”
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African Review of Business and Technology - May 2012
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NEWS
Bulletin / Communications Making digital markets work
Olympics broadcasting in HD
Satellite operator SES continues to host roadshows in African
The Arab States Broadcasting Union (ASBU) has selected Newtec
countries to offer regulators, governments, broadcasters and
to upgrade its members’ infrastructure to bring the first fully High
network operators a forum to discuss the challenges posed by
Definition (HD) Olympic Games to the Middle East and North
the 2015 deadline to convert to digital broadcasting - with
Africa (MENA); the infrastructure upgrades will allow the ASBU
events already held in Cote d’Ivoire, Cameroon, Burkino Faso,
members to receive the live Olympic multilateral feeds and news
Niger, Senegal and Guinea to be followed by dates in Algeria,
channels in HD and will also turnaround the HD signals to provide
Angola, Nigeria, Tanzania, Kenya, Libya, Liberia and South Sudan;
SD simultaneous broadcast (simulcast), with Olympic content to
“As a company, SES has allocated considerable resources to the
be injected into the central archive of the ASBU Multimedia
African continent to assist governments find the right solutions
Exchange Network over Satellite (MENOS), allowing members to
for the migration,” said Ibrahima Guimba-Saidou, SES head of
access the content at a later time and eliminating the need for
Africa.
each member to individually archive all feeds, resulting in significant cost reductions and operational streamlining.
Payload to provide new services Satellite services provider Intelsat S.A. and International Launch
Governance is critical to cloud management
Services (ILS) recently launched an ILS Proton M vehicle carrying
Forrester Research finds that business is increasingly regarding
the Intelsat 22 satellite into supersynchronous transfer orbit
the cloud as an avenue to bypass IT; nearly 60 per cent of
(SSTO) at a 65,000-km apogee; built by Boeing Space &
respondents are running mission critical workloads in the
Intelligence Systems, the satellite will provide C- and Ku-band
unmanaged public cloud - in most cases in contravention of
capacity for media, government and network services customers
policy.
in Africa, Asia, Europe and the Middle East.
Connecting Iridium Users Gilat Satcom, which provides domestic and international fibre and satellite-based connectivity services, has released SuricatePRO, a solution that provides people in underground and other closed facilities with the ability to communicate over Iridium satellite phones; providing coverage extension for Iridium devices, SuricatePRO extends telephony throughout the facility without loss of signal quality - serving Satphone users in mines, secure military installations, underground facilities and remote locations without sky view, enabling the setting up of a communication link with the Iridium satellite constellation.
Upgrade for Lagos network IHS, a telecommunications infrastructure provider, has invested US$8mn to upgrade its Network Operations Centre (NOC) in Lagos, to offer advanced infrastructure management and professional services and site monitoring systems to mobile network operators in Nigeria, Cameroon, Niger and other neighbouring countries in West Africa; Issam Darwish, CEO, IHS said, “The investment in the NOC marks a new chapter for IHS, and reaffirms our commitment to Africa. It will allow us to implement our regional growth plan by expanding our reach and providing the additional higher value services that regional operators are currently seeking.”
African Review of Business and Technology - May 2012
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NEWS
Bulletin / Communications Ghana creates more community information centres
Abroad - and Projects Abroad is now
intensive training programme, in collaboration
supplementing Bring-a-Book with Ipad-Influx,
with Ghana’s Ministry of Youth and Sports as
The Ghanaian Government is constructing
encouraging young volunteers now to bring
part of the National Youth Employment
Community Information Centres in all the 230
either Ipads or English children’s books to
Programmes (NYEP); the first set of trainees
Constituencies and ten Regional Innovation
Ghana to encourage reading as well as
will, in turn, take over the training of future
Centres to provide access to information and
improving literacy; Dr Peter Slowe, Founder of
groups of youths under the module.
also to serve as learning centres for the
Projects Abroad and avid supporter of literacy
citizenry; "The initiative seeks to demystify
education for all children states, ”Modern
Information Communication Technology (ICT)
children love to learn through technology –
Mobile broadband to double in West and Central Africa by 2017
in the rural and less served areas of the
but they also love to have old-fashioned books
The West and Central African region has
country," said Mr Ernest Attuquaye Armah,
and pictures in their hands.”
witnessed a dramatic increase in mobile broadband connections in the last decade,
Deputy Minister for Communications, at the
Technology trainers work with Nigerian youth
with much of the growth attributed to the
An ICT capacity-building and job creation
Nigeria; Frost & Sullivan's analysis, West and
Ipads improve Ghanaian literacy rates
development model pioneered by the
Central African Broadband Market Tracker,
Ghanaian firm Rlg Communications has been
finds that the market generated revenues of
The Apostolic Preparatory School in Ghana is
replicated in Nigeria, with eight experienced
approximately US$1.2bn in 2010 and estimates
now receiving donations from a Bring-A-Book
trainers from the Rlg Institute of Technology
this to more than double to US$2.5bn in 2017
programme introduced in 2011 by Projects
arriving in Osun State to conduct a six-month
across Nigeria, Ghana, DRC and Gabon.
inauguration of an Information Access Centre (IAC) at the University of Ghana, Accra.
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African Review of Business and Technology - May 2012
surge in mobile broadband adoption in
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Lakeside Development Opportunities There are wonderful investment opportunities for the potential investors at Lakeside Estate. They require professional investors with funding and resources. We believe at Lakeside Estate with Ghana’s Government housing statistic of 1,500,000 housing unit deficit, there is tremendous opportunities for many to join us to satisfy the public needs of housing and commerce. We can allocate and co-develop housing and other projects with real estate developers and investors. This has been done successfully at Community #1 with Dream Homes. Below are different types of investment opportunities at Lakeside. Residential At Community #8, there are approximately 18 plots with laterite road and fencewall ready for residential development. The residential developer must continue the infrastructure work of concrete drains, hard surface roads, power distribution, and building of residential houses. Amount to pay for the above opportunity is $225,000. Amount required to develop as stated above is between $1.8 to $2.8 million. The development must be completed within 24 months.
Commercial – Lakeside Shopping & Banking Centre Lakeside Estate hopes to construct the above community shopping, banking, and office centre by the end of 2012. It will house a banking hall and mortgage centre, insurance shop, commercial shops, property office, provision shop, restaurant, gym, and offices. This is a two-story building with a built-up area of 1,500 m2 and forty vehicles parking. Plot area is 3,743 m2 or 0.94 acres. The proposed rent is US$20/sf-yr with 10 per cent service charge to cover costs of perimeter security personnel, landscape maintenance, parking control, exterior cleaning, and exterior maintenance. Tenant will supply and maintain their own genset. Interested party may apply to Lakeside Estate in early 2012 for rental space.
School or Seminary We have a special zoned plot in prime area for either high school or seminary. The plot is fenced, with power line, and sidewalk. Plot area is 5,577 m2 or 1.39 acres.
Hospital We have a special zoned plot in prime area for either clinic or hospital. The plot is not fenced but with power line. It is available for professional hospital operator and developer. Plot area is 6,767 m2 or 1.7 acres.
Mini-mall We have a special zoned plot in prime area for small mall. The plot is not fenced but with power line and has access on three roads. It is available for joint venture with a professional
mall operator and developer. This will be available for tender in early 2017. Plot area is 10,125 m2 or 2.5 acres.
Recreational Amusement Park The existing Lakeside Marina Park (LMP) is looking for a partner to enter into a joint venture (JV) with 50 per cent equity in 2012. Investment amount is $3.0 M. LMP won the 2010 & 2011 Leisure Developer of the Year award. We hope to develop the area around the Lake (17.6 Acres or 71,527 m2) into a world class amusement park that will also have hotel, and conference centre. This will attract tourists from all over West Africa. Existing Developed Plot area is 8,863 m2 or 2.2 acres. Undeveloped Plot area is 49,258 m2 or 12.2 acres.
CONTACT INFORMATION Interested developers should contact in writing the Managing Director of Lakeside Estate with their credentials and business proposals. No speculators are allowed with this type of developmental opportunities. Investors must develop immediately. Contact office is at Silver Start Tower, Accra, Ghana. Other restriction may apply. Prices quoted in US dollars and specifications may change without notice. www.lakesideestate.com African Review of Business and Technology - May 2012
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ECONOMY
Ghana
How commerce gains from oil and technology Ghana benefits from the transition to oil-based industry, with science and technology attracting fresh investment from foriegn business interests
T
he stability of the Ghanaian economy has improved significantly since the start of an economic programme undertaken by the nation’s government in 2009 and supported by the International Monetary Fund (IMF). - at a time of sizeable fiscal and external current account imbalances. In less than three years, these imbalances have been greatly reduced, the country’s inflation rate has declined to single digits, at a rate of 8½-9 per cent, and its stock of international reserves has risen to about US$5bn - up from US$2bn at the end of 2008. And, in 2011, a combination of fiscal consolidation and monetary easing reinforced this positive economic scenario and contributed to a robust and broad-based performance of the economy. This positive economic picture has been accentuated by the emergence of significant oil production operations, to the extent that overall economic growth is projected to reach 13½ per cent in 2011 and more than eight per cent in 2012. Ghana’s economy in the 2000s had been growing at an average of around six per cent per annum. Following the discovery of oil in the middle of the decade, and its subsequent production at the end of the decade, hopes were that export revenues would help cushion the country from external shocks - and, actually, from 2007, real GDP growth increased marginally, consistently above six per cent. Oil: a key economic factor If one refers to the work of Tullow Oil Ghana, one can gain an impression of the benefits ot the nation’s economy of recent investment in the oil sector - as well as potential productivity still to be
The Eirik Raude semi-submersible rig operating on Ghana’s Jubilee Field, enabling the development of Ghana’s oil economy (Photo: Tullow)
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African Review of Business and Technology - May 2012
achieved. Since significant oil production was undertaken at the Jubille field by Tullow at the end of 2010, over 22mn barrels of oil have been produced and 21 oil cargoes have been safely exported. The field has been producing around 80,000 barrels of oil per day from eight wells. Six water injection wells and two gas injection wells are now on line injecting 230,000bwpd and 85 mmscfd respectively, providing good pressure support to the field. Production rates may have been below expectations due to mechanical issues in certain wells related to the design of the well completions - but these issues are not unusual for a new field development of this type and remedial work has been ongoing with, for example, the incorporation of a new completion design now on stream. The resolution of well completion issues and the contribution of an additional well - Phase 1A - will allow field production to ramp up to facility capacity later in 2012. And one should not forget that with the recent discovery of oil in commercial quantities, Ghana’s gas sector has likewise attracted investor attention. The Government of Ghana has supported gas as well as oil with a strategic plan to utilise associated gas from the oilproducing Jubilee Field to boost industrialisation and minimise detrimental environmental effects associated with gas flaring. Industry, science, and commerce Economics and technology are closely associated, and technology and science initiatives in Ghana are gaining investment funding on the back of the country’s positive conomic prospects. An example of the interest in Ghanaian science and technology from commercial interests came earlier in 2012 when German Vice Minister Dr. Pfaffenbach and a high-ranking German Business Delegation visited Ghana in association with the opening of the office of the Delegation of German Industry and Commerce in Ghana (AHK Ghana) in January. The Delegation of AHK Ghana and the Ghanaian-German Economic Association (GGEA) organised a business and economic affairs oriented programme for members representing finance, energy, security, automotive, construction, oil & gas, ICT, water treatment and pharmaceuticals. Companies taking part and pursuing interests in Ghana included ABB, assmann beraten+planen, Bauer Resources Ghana Ltd, BHF Bank, Cbb software GmbH, the Chamber of Industry and Commerce Magdeburg, Christian Pfeiffer, Continental Power, Dietmar Jochem Security Management GmbH, Fintec Holding GmbH, the Chamber of Commerce Hamburg, Hospoital Engineering, ibes Systemhaus, iLF Consulting Engineers, ILV, Inros Lackner AG., Kocks Ingenieure, Labotect, Lenz Finance Management, MAN, Pharmadrug Production GmbH, Roche, RWE DEA AG, RRi, Siemens, Stephan Buchmann Medical Service, WestLB AG, and Wilo. ■
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FINANCE
South Africa
Steering Africa’s biggest stock market Nicky Newton-King, chief executive of the Johannesburg Stock Exchange, describes her experience of running a key African capital market The Johannesburg Stock Exchange
W
hat’s are the major challenges for South Africa’s capital markets? Nicky Newton-King: The first thing to note about our capital markets is they’re relatively sophisticated. We have quite a deep ecosystem system in this country, whether that’s of the exchanges, of banks or of intermediaries. We have a long history of sophisticated financial services, and the Johannesburg Stock Exchange (JSE) is easily the largest exchange on the continent. While these are all good things, they do create their own challenges. One of the things you have to do as an exchange is make sure that you steer forward and attract big capital flows and big global investments while also finding ways to be relevant to the local economy. That means also retaining a focus on retail investment, and demystifying savings and investments. What is your strategy to meet these challenges? NN-K: I think from a retail perspective there is much more for us to do and much more for the ecosystem to do. There are nearly 50 million people in South Africa and there just a few, relatively speaking, that are economically active and even fewer that are involved in the financial markets. Encouraging retail brokering, looking at
24
pricing to get people to be able to use this – all these things are part and parcel of the strategy. I also think disclosure is a very important part of what we will make the investor comfortable – but whether you’re a wholesaler or retailer, the needs are very different. I think there is a lot that we need to be doing in that space, a lot we’ve done historically, which is why we are rated as the world’s best regulated market. But there’s so much more that you can do, but I think there is still more to do. Do you see Africa’s investment growth as a default phenomenon, that as international investors find it difficult to get growth in the developed markets they switch to emerging markets? NN-K: No, the reality is the world is becoming much more global. I’ve studied in America for a while and I have talked to some of really big endowment fund people and the way they were looking at Africa. While they might understand the local market, if they want to be truly competitive they need to find new investment opportunities. While emerging markets have been traditionally quite scary for many Western investors, the stark reality is the BRICS are going to become a more meaningful part of the global savings landscape, let alone
African Review of Business and Technology - May 2012
economic landscape, and you need to be there. We happen to be uniquely positioned in Africa and we need to make of use of it. Is there any difference to the approach you are taking to your job to that of your predecessor? I know you worked very closely with him before he stepped down. NN-K: Yes, very closely. For 15 years we made a pretty formidable team! He was our board of executive for 15 years during which time the market, our industry, was changing so fast. But frankly, if in a year’s time we are in the same place now as we are now, I think we would be significantly disappointed. Russell [Loubser] was a very brave leader and likely to call a spade exactly that! I am a much more of a cajoler type. He had a very high tolerance for dissonance and he was prepared to have a lot of vigorous people talk in many different ways for a long time. I like to have lots of different views but I like to make a make a decision in a fairly short time. We’ll get to the same place, but it’s just a different style. What does the budget hold for the capital markets? NN-K: I understand exactly that the government has significant funding requirements and big infrastructure plans
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FEATURE
South Africa
which are important in this country and need to be implemented and developed. So we have a very good opportunity in that regard. I think there are some opportunities in the budget and there are some challenges. If you look at the opportunity side, the statement on carbon taxes and where they are going creates the opportunity for the first time for us to seriously look at the carbon market, a voluntary carbon market. Now the policy regime is coming into place to incentivise the trade of carbon. So that’s an opportunity for us. I wouldn’t say it’s an extraordinarily large opportunity but it’s an opportunity and I think we’re well positioned in this regard. On the challenge side, you know, we are seeing the debate in Europe around transaction taxes, but we’ve always had a transaction taxes. But we have also had certain exemptions and government is indicating that they want to renew those exemptions. They are also looking at a transaction tax on durables, which would be a first, but I am not sure that they will do that. That would be a particular challenge. There is a lot of economic research that would indicate transaction taxes significantly slow-down market activities as it’s an additional cost and people move to markets that do not have them. But these decisions are a year away so there is a lot of time for us to work on the details. We at the JSE get on extremely well with the Treasury. And another point I should like to make is that when government is funding, they use the weekly auctions that then trade on a secondary basis on the market. I am very impressed with the amount of work that has gone into clarifying the infrastructure developments that are being planned, and the very crisp statements in the budget.
the products we can provide our clients. It’s part of how we can unlock the continent. What we are doing here at the JSE is creating a space where top African companies can come and cross list here. We have 14 African issues listed on the JSE exchange. It’s going to happen more and more because the international investor appetite for African risk and investment opportunities is definitely bright. How do you think the market might be deepened in South Africa? NN-K: It starts with developing appropriate products and services and at an appropriate price. I think it’s about providing products that give people access in a very easy way, so just like we now have easy bank accounts, we need easy brokering accounts and such like. What is the JSE’s role in the development trajectory of South Africa? NN-K: We are always mindful that the development of South African companies form a deep part of our nation’s socio-economic transformation. Therefore, as the JSE there will always be an element of trying to accommodate companies to raise money and we prefer to be principles-based. If someone has a good idea, even if it is not in the rules, we will look at it if it aligns with what we are trying to achieve and try to make it work as best as possible.
Could you explain your relationship with other African capital markets? NN-K: It’s friendly, but it’s not all about business – that is the bottom line...I mean we do not own any shares in any of them and we do not provide technology to anybody other than Namibia. But we have got fairly close relationships with all 24 chief executives and I personally think there is a lot of opportunity for us to work together in our respective markets and
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African Review of Business and Technology - May 2012
You have announced some technology developments that will shave milliseconds of the time it takes to trade. Why is this so important? NN-K: Our top stocks trade on say several jurisdictions around the world, so if we are not as fast as anyone else if we do not have the ability to handle high volume, high frequency placings and have a technology that is robust and has all the right of algorhythms, the right security, we are not competitive. We have a big data centre and we are moving into co-location which is where people want to trade at these ridiculously fast trades, they need to put their black boxes in there. So we would like to say ‘why you won’t put the black box right next to us and it will be very, very fast, much faster than if you put it in London or in fact even a kilometer away’. It’s pretty costly, but there are additional services that come with that. Interview conducted by Stephen Williams
JSE chief executive Nicky Newton-King
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Connecting Conn nectingg
Africa Af Afric A f ica
and the
WORLD W OR ORLD C Corporate orporate and and Investment Investment Banking Banking W With ith international international rrepresentation epresentation in in over over 3 30 0 co countries untries around around the the world, exper tise and and network net work w orld, we we are are able able to to combine combine our our local local market market expertise with make connections. w ith our our emerging emerging market market ccapability apabilit y tto om ake tthe he rright ight co nnec tions. For www.standardbank.com/cib. For more more information information visit visit w w w.standardbank.com/cib.
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FINANCE
Remittance
Affordable, accessible money transfers How payments platforms can open up opportunities to send billions more to emerging markets
B
usinessman Rajesh Agrawal first arrived in London in 2001 with just £200 (US$319) in his pocket. Four years later, he would found one of the fastest growing foreign exchange companies, worth £250mn. However, the journey that would take him there would begin with a profound sense of anger and disillusionment. Like many Indian migrants in the UK, Rajesh regularly sent money back home to his family in India. Every penny earned was precious, and Rajesh was keen to get the most affordable exchange rates. But in his early days in London, money transfers were terribly expensive - unnecessarily so. Refusing to be ripped off, Rajesh left his comfortable job as a foreign exchange broker and launched his own foreign exchange and international money transfer company, RationalFX. Today, RationalFX is revolutionising the money transfer/remittance market with some of the best exchange rates, maximum security, low cost or no cost payment
transfers, and multilingual online FX services. Authorised by the FSA, RationalFX has completed over $2bn in payments worldwide, and is touted as one of the world’s leading independent foreign exchange companies. Xendpay.com In 2011, RationalFX launched the online money transfer platform, Xendpay.com to offer a cost-effective and efficient way of making payments worldwide. Through the online service, customers can send as much as 10 per cent more for the same amount of Pound Sterling, compared to high street money transfer outlets. Xendpay.com is easy-to-use, eliminates the need for agents or branch visits, and reduces the transfer costs incurred with banks or brokers. In fact, it charges no fees for an online standard transfer (5-7 days) and only £9.99 for an online express transfer. Compare this with standard payment costs that are about £20-25, and amount to £400-500 a year
Agency banking in East Africa
T
hree Kenyan banks have rolled out services to increase access and save on costs. Kenya Commercial Bank (KCB), Equity Bank and Co-operative Bank have been rolling out agency banking networks. Regulations implemented by the Central Bank of Kenya (CBK) to govern the agency banking model allowing banks to offer services through approved agents. Consequently, agents can be telecommunication outlets, small and medium enterprises (SMEs), retail chains, savings and credit co-operatives (Saccos) and even local shops in the neighbourhood. By the end of 2011
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Equity bank - the biggest financial organisation Kenya - had recruited 8,000 agents with 2,000 KCB had a target of 2,000 agents with Co-op bank targeting Saccos to tap on its deposit pools. The agents have been operating a secure system to carry out real time transactions-generating audit trail and protecting data confidentiality and integrity. Transactions can be made via mobile phone, a point of sale (POS) system or internet banking and must reflect immediately on the bank’s side in its core business. Mwangi Mumero
African Review of Business and Technology - May 2012
for regular transactions. No wonder Xendpay.com is taking off in a big way, particularly in Europe where the debt crisis looms large. Companies and individuals, struggling to cut expenses, are finding Xendpay.com an extremely affordable option for money transfers. Thriving in a tough economic climate According to The World Bank, there are more than 215mn international migrants in the world.(1) Recorded remittances received by developing countries in 2011 were a whopping $351bn, constituting more than 10 per cent of the Gross Domestic Product (GDP) in many developing countries. In a small and low income country such as Lesotho (SubSaharan Africa), remittances constitute up to 29 per cent of the GDP.(2) India, China, Mexico and the Philippines are the top recipients of remittances among developing countries while the US is the largest source of remittances.(3) These remittances play an important role in alleviating poverty, and increasing investments in health, education and small businesses. During the recent global financial crisis, remittance flows proved to be resilient, falling only five per cent in 2009 and registering a quick recovery in 2010. Going forward, the World Bank predicts that remittance flows to developing countries will grow by 7.3-8.4 per cent to reach $441bn by 2014.(4) Clearly, the remittance market offers numerous lucrative opportunities for banks, money sending bureaus and foreign exchange operators. Unfortunately, customers do not benefit as much. Not only are they plagued by poor exchange rates and high transfer fees, but they also have to fill out pages of cumbersome paperwork, travel sometimes long distances to a money transfer or bank outlet, and then stand in long queues until their request is processed. Poor migrants and their families are the worst impacted.
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FINANCE
Remittance
According to The World Bank, if the costs of sending money were cut by at least five per cent, remittance recipients in developing countries would receive over $16bn more each year than they do now. This added income could then provide recipients with more opportunities for consumption, savings, and investment in local economies.(5) Looking Out for the Customer Rajesh Agrawal was well aware of just much individuals would benefit from lower money transfer costs. After all, he knew a thing or two about what it meant to struggle for a living. When he started off his career in India, he earned barely £60 a month, and lived in a hostel, sharing a bathroom with 12 people. Clearly, the experience had a deep impact on him - even when he became immensely successful, he refused to overcharge for services. Instead, he leveraged technology to make his services that much more accessible and affordable. Xendpay.com, for instance, enables quick money transfers at low exchange rates and minimal fees. The company buys its currency in bulk at wholesale rates, so savings are passed directly to customers. All one has to do is sign up for the service (a few quick steps), activate an online account, and start sending money. The platform connects customers to the SWIFT network - the global financial network used by banks worldwide for inter-bank money transfers - allowing them to send money online to almost any bank account in the world. There are no agents, no queues, no arduous paper work, and no exorbitant fees. Methods of payment have been made as convenient as possible - credit/debit card,
bank transfer, and ELV or iDeal for euro transactions. Moreover, the service is regulated by HM Revenue and Customs for optimal security. Customers can access the website in eight different languages including English, French, Spanish, German, Italian, Polish and Chinese. With services like Xendpay.com, RationalFX is truly transforming the way people make payments, and providing stiff competition to well established money transfer companies. In seven years, the company has notched up 20,000 private and corporate clients, employs more than 60 people in London, has offices in Birmingham and Poland, and has even become the shirt sponsors of the Birmingham City Football Club - not bad for a firm that started out with just two business partners and one laptop. Today, 34 year old Rajesh is exploring new ways of extending and expanding RationalFX’s services. For instance, Xendpay.com could be used to support a kind of reverse remittance where parents in developing countries such as India costeffectively remit money for the education of their children abroad. Unbanked customers in large markets such as Africa could also benefit from Xendpay.com - money could be remitted as cash via bank outlets, or perhaps even, mobile money. Ask Rajesh where he gets his ideas from, and he points to his staff. Ranging from English, to Polish, to French, to Chinese, this small multi-lingual team brings to the table numerous diverse and innovative suggestions. The idea of expanding the company’s services to Ghana, for instance, came from the Ghanaian cleaning lady in the office who convinced Rajesh of the need
for affordable remittance services for her home country. It is probably this approach of respecting and listening closely to his employees and customers, that has brought Rajesh immense success. It will be interesting to see how his company grows in the next few years, providing simple solutions to complex problems, and transforming the payments space worldwide. ■ Notes: 1. Migration and Remittances Factbook 2011 (Second Edition) – The World Bank http://siteresources.worldbank.org/INTLAC/ Resources/Factbook2011-Ebook.pdf 2. Migration and Development Brief – Migration and Remittances Unit, The World Bank – December 1, 2011 http://siteresources.worldbank.org/TOPICS/ Resources/2149701288877981391/MigrationandDevelopment Brief17.pdf 3. Migration and Development Brief – Migration and Remittances Unit, The World Bank – December 1, 2011 http://siteresources.worldbank.org/TOPICS/ Resources/2149701288877981391/MigrationandDevelopment Brief17.pdf 4. Migration and Development Brief – Migration and Remittances Unit, The World Bank – December 1, 2011 http://siteresources.worldbank.org/TOPICS/ Resources/2149701288877981391/MigrationandDevelopment Brief17.pdf 5. http://remittanceprices.worldbank.org/ and http://sendmoneyafrica.worldbank.org/abou t-us
Micromine showcases consulting services at Mines and Money
P
rovider of intuitive software solutions to the mining and exploration industry, Micromine presented its consulting services division, Micromine Consulting Services (MCS), at Mines and Money in Hong Kong in March 2012. MCS - whose clients include Anglo Gold Ashanti - provides geological and mining consulting services to mineral resource companies worldwide, assisting its clients throughout all stages of the exploration and mining process. MCS conducts numerous independent mineral resource and reserve estimates, site validation, Quality Control and pit optimisation exercises for all commodities, from scoping to feasibility stage.
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African Review of Business and Technology - May 2012
Micromine General Manager, Dean O’Keefe comments, “Whether clients are developing, buying or selling mineral resources, seeking project approvals, raising capital or re-evaluating existing resources, MCS provides a range of services. These are delivered by experienced consultants located in each of its 20 operations around the world.” At the conference, MCS offered a special Mines and Money free consultation, to identify key business objectives, challenges and projects, and map MCS solutions to meet business imperatives. MCS services include: ● Valuations and Prospectus.
●
●
● ●
●
● ●
Due diligence, property and resource/reserve audits. Mineral resource and reserve estimations. Coal resource and reserve estimations. Scoping, pre-feasibility and feasibility studies. Exploration data acquisition, management, interpretation and modelling. Exploration project management. Competent person reports compliant with JORC, NI43-101, SAMREC, SEHK, China MLR, GKZ Standard, Mongolian MRPAM and PERC Code.
www.micromine.com
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Distributors in Africa: KENYA - HCE Kenya Ltd.: Tel: +254-20-2013137. Email: sales@hcekenya.com SOUTH AFRICA - Engine Applications Pty. Ltd.: Tel: +27-11-8251560,61. Email: liz@engapp.co.za TANZANIA - Incar Tanzania Ltd.: Tel: +255-22-2861668,70. Email: gm@incartz.com MALAWI - Agriculture Equipments Ltd.: Tel: +265-1-724624. Email: cap@globemw.net MAURITIUS - Triomix Ltd.: Tel: +230-2616629, 2615245. Email: trio@intnet.mu NIGERIA - Progressive Star (Nigeria) Ltd.: Tel: +234-1-7914999 & 8023233223. Email: prostar@hyperia.com
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EQUIPMENT
Banking and Finance Embracing consumer convergence
W
hen it comes to adopting new technologies and using social media, South African consumers and businesses are comparing favourably to the rest of the world, according to the recent KPMG Consumers & Convergence Report. “When we launched our first study in 2006, there was no iPhone, iPad, or an apps market. Facebook and Twitter were in their infancy. Today, consumer adoption has gained pace even faster than some of the technology developments that are taking place,” says Frank Rizzo, managing partner: IT Advisory at KPMG. According to Rizzo, people do not care about the hardware they are using. While they are certainly brand conscious, users care about how devices are used to consume and generate content and how companies interact with them using their platforms of choice. “The converged lifestyle has significant implications for businesses across sectors in the way they engage and build relationships with their customers. Globally, we are seeing people increasingly willing to share their usage patterns with businesses if they have a compelling reason to do so, for example reduced cost of goods or other incentives,” he says. But, when it comes to privacy and security, South African respondents are more concerned about these issues than global and Nigerian respondents, who participated in the survey for the first time. As an example, 61 per cent of local respondents are very concerned about the threat of unauthorised parties gaining access to personally identifiable information while only 21 per cent of Nigerian respondents are concerned about this. Click to buy With people using a myriad of devices to access information, more than half of South African respondents (54 per cent) are using mobile phones to locate their nearest retail store with Nigeria in the lead with 68 per
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cent of respondents. However, local respondents are ahead of global figures and those from Nigeria when it comes to using mobile devices to make payments. “In this modern age of engagement, it is clear that businesses need to build trust with customers to KPMG finds that businesses had better get ready for some succeed online. Users are continuously fast technology and even faster consumer adoption asking themselves whether they trust a information and address books. Storing company enough to share their personal banking information on the cloud is also data with them,” he says. something 31 per cent of local respondents Interestingly enough, most online would do as compared to only eight per cent purchases in South Africa being done on a of Nigerian respondents,” adds Rizzo. computer are for flights and vacations (50 per cent), ahead of global (35 per cent) and Content pricing concerns Nigeria (one per cent). South Africans are also more likely to purchase low-value goods Perhaps more concerning for content companies is that South African and Nigerian such as CDs, DVDs, books and computer respondents are very price conscious and not games online (34 per cent), than global (29 willing to pay for online content. per cent) and Nigerian (three per cent) users. “While many content providers are “We have also seen that while South Africans use their credit cards to make online looking at implementing a paywall model, it seems that consumers will generally find purchases, Nigerians prefer using Payal or alternative sites to get their news and wire transfers as a means of making information from. Content providers who are payment. This could be attributed to the monetising usage patterns do seem to gain effectiveness of South Africa’s banking a bit of traction for users who want to see system when it comes to online payments,” digital value-adds to content such as says Rizzo. content apps, multimedia elements and more interactive and engaging content,” Being social South Africans use social networking more believes Rizzo. than compared to global trends and almost For Rizzo, the report highlights the extent double when compared to Nigeria. However, to which the South African and Nigerian local users are still more concerned about markets are embracing technology across sharing personal identifiable information sectors to interact with not only friends and than the Nigerian market. This changes families, but also to engage with brands. when companies offer users incentives so “Consumer expectations when it comes to there are definitely idealistic and pragmatic content and brand engagement are viewpoints when it comes to personal changing at a phenomenal rate. The information. companies that will succeed in this new era “While local respondents are concerned of engagement will be the ones who can about privacy and security from a personal build trust and who can interact with their perspective, they are quite happy to use clients on the platforms they choose,” cloud computing services to store contact concludes Rizzo.
African Review of Business and Technology - May 2012
C1200088
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www.samsung.co.za
0860 726 7864
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ICT
Messaging for business E
Rapid recovery Backup is designed to restore and index a snapshot of data at a certain point in time, by creating a copy of the primary data source. E-mail
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African Review of Business and Technology - May 2012
Photo: Micky Aldridge
-mail and instant messaging have become a vital part of everyday life and business workings, and because organisations are so reliant on e-mail, without the ability to communicate via these channels productivity can often grind to a halt. Due to the critical importance to business of e-mail and messaging, both backup and archiving are vital in ensuring business continuity, disaster recovery and legal regulatory compliance. “E-mail storage and management have become important issues in the business space. Most people now understand that having a backup of data such as e-mails is desirable in case of technology failure, however because a large proportion of business communication takes place via this medium, archiving also becomes necessary to store data for legal purposes. E-mail backup and e-mail archiving are not the same thing, and are in fact two separate technologies, both of which are necessary in today’s business world,� says Paul Lawrence, Regional Sales Director - UK, Nordics & MEA at Barracuda Networks Limited. backup can happen both at the individual message level and the server level, both of which are important for disaster recovery. Message-level backup stores mail messages from each user for fast restoration of messages that have been corrupted or accidentally
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E-mail E-mail backup and e-mail archiving are not the same thing; they are in fact two separate technologies, both of which are necessary in today’s business world” deleted. E-mail server backup is needed to restore an organisation’s email server in the event that the server is corrupted or destroyed, but in order to do this a full backup must be available of the entire e-mail server including software, configuration and the database. “However, backup is a snapshot of a specific moment, which means that all e-mails sent and received after that certain point in time will not be backed up in that snapshot, and e-mails that are not backed up can be deleted from the e-mail server, which means they could be lost forever. This means that backup alone, while important for disaster recovery, does not meet organisational compliance objectives to legislation,” says Martin Tassev, Managing Director of Loophold Security Distribution. Capture and storage Archiving, on the other hand, is designed to save data for an extended period of time and index it for easy search and retrieval. An archiving solution ensures that every single e-mail that is sent or received is captured and stored for retrieval should this be necessary. This is vital not only for compliance, legal purposes and ensuring availability of
ICT
messaging data, but also from a continuity perspective, so that in the event of an individual employee leaving, previous e-mail transactions can easily be searched and retrieved. “The indexing and search functionality of archiving makes specific data far easier to find, which makes searching in the event of a dispute a far simpler process. This is particularly important for organisations in sectors such as financial services, which are legally obligated to keep a copy of all transactions that take place over e-mail. Properly archived message data is also vital for the process of e-discovery, since e-mail has become so much a part of our lives that the majority of litigation cases now require e-mails to be presented as evidence,” says Tassev. Operational issues The core functionality of e-mail archiving is to index and preserve electronic communications to enforce retention policies according to regulatory compliance. However, it also protects entire organisations’ e-mail and messaging data from operational failure, disk failure and disaster and improves e-mail server performance at the same time by offloading e-mails from the server into the archiving system, storing only one copy should an e-mail have been sent to multiple people, where users can access them seamlessly and easily. “In order for organisations to attain comprehensive e-mail storage and management that meets the needs of the business as well as the compliance requirements of a variety of legislation, it is vital to implement a combination of message archiving and message backup. These two complementary technologies work together to ensure that messages, which have become an integral part of organisational communication, are retained for legal purposes and for restoration should users require it,” Lawrence concludes. ■
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OPERATOR CLOUD PROVIDER
Kageni Wilson Founder & CEO ionacloud, Kenya
ENTERPRISE
Abdel Wahed Bendaoua Head of Enterprise EMEA Emerging Markets, Google
Deji Ilesanmi VP, Group Enterprise Business – Africa Marketing & Distribution, Airtel Africa
Tom Juma Head of ICT and Service Delivery Old Mutual Kenya
OPERATOR
OPERATOR ENTERPRISE
Shishir Saraf CIO, Sameer Africa Limited Kenya
Navi Naidoo GM of Operations MTN Business
OPERATOR
Nazar Sahal Group CIO Expresso Telecom
Johann Van Der Westhuizen CEO e-Logics
CLOUD PROVIDER
ENTERPRISE
Felix Martin-Aguilar Strategy Executive & Head of Business Services, Cell C
Prof Pete Janse van Vuuren (PhD), CEO, The Thinking Cap, Director, Africa CIO Forum, CIO Council of South Africa
Douglas Reed CEO Vox Telecom
CLOUD PROVIDER
Lesego Molwantwa Manager of Africa Products & Marketing, MTN Business
OPERATOR
OPERATOR
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CLOUD FOR AFRICAN ICT: TRANSFORMING BUSINESS TO BOOST PROFIT & EFFICIENCY
Bob Collymore CEO Safaricom
ENTERPRISE
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WWW.CLOUDAFRICASUMMIT.COM African Review of Business and Technology - May 2012
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EQUIPMENT
ICT How broadband can support a green economy A report from the Broadband Commission for Digital Development - The Broadband Bridge: Linking ICT with Climate Action for a Low Carbon Economy - highlights ten recommendations to enable information and communications technologies (ICTs) to accelerate global progress towards a lowcarbon economy. The report, which is the result of work conducted by the Broadband Commission Working Group on Climate Change, chaired by Hans Vestberg, President and CEO of Ericsson, raises awareness about the pivotal role that ICT and broadband can play in helping to create a low carbon economy of the future, identifying best practice,
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African Review of Business and Technology - May 2012
expressing the views of leaders, and outlining clear recommendations for policy makers. It emphasises the kind of transformative solutions that are enabled by broadband and provides practical examples of how broadband can contribute to reducing greenhouse gasses (GHGs), mitigating and adapting to the effects of climate change, and promoting resource efficiency and concludes with 10 recommendations for policy makers and global leaders to hasten and strengthen the ability of ICT and broadband to accelerate global progress towards the low-carbon economy.
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MATERIALS HANDLING
Storage
Racking up with new warehouse technology Improved warehouse capacities, reduced cost-per-pick and better access with racking solutions that integrate three key warehouse elements
A
PC Storage Solutions SA is changing the way companies that want to improve warehouse capacities, reduce cost-per-pick and create ease of access look at racking solutions by integrating three key warehouse elements: warehouse-optimising designs, material handling equipment and racking systems. By understanding how these three principles are linked, it becomes clear that a rack is no longer just a rack. “We thoroughly analyse our customers’ needs and come up with designs that we compare against all racking systems we have on offer to determine the best overall warehouse solution,” says Fred Albrecht, Managing Director, APC Storage Solutions SA. “This allows us to balance capex with opex for the lowest long-term cost-per-pick with maximum productivity.” Most warehouses effectively use conventional pallet racking systems – storage systems operated by traditional forklifts. More advanced systems, such as drive-in pallet racking – where forklifts drive in aisle spaces to deposit or collect items, mobile racking – where racking units move to open aisle spaces to increase capacity by 50%, and stacker crane or ASRS racking – for total warehouse automation, are just some of the various racking systems on offer to increase the number of pallet positions on the same square meterage. These systems make use of cubic square metres, making the most out of paid-for square meterage. APC Storage Solutions SA uses the Artix articulated forklift as an essential tool for effective warehouse operation in densely packed warehouses where narrow aisles prevent standard forklifts or reach trucks from operating. This forklift is also suited to operating in conventional racking-type warehouses, but integrating this unique machine with high-density and high throughput racking layouts offers warehouses maximum space utilisation and
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The highly agile and easily manoeuvrable articulated forklift realises a low total cost of ownership with its high productivity
ease of operation. For narrow aisle spaces, the batterypowered Artix can lift loads of up to 2 500kg to heights of up to 12.5 metres, in aisles as narrow as 1 652mm. This machine is considered a value-adding upgrade in preparation for future migration to narrow aisle warehousing from conventional pallet racking.
African Review of Business and Technology - May 2012
In a scenario, APC Storage Solutions SA took, 1 768m2 of warehouse space and maximised its storage capacities of standard euro pallets of 800 X 1 200mm in size. Scenario 1: This warehouse is made up of conventional pallet racking with very narrow aisle spaces. Three VNA (very narrow aisle) turret trucks
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Storage lift pallets to heights of 15.5 metres, accommodating warehouse capacities of 840 pallets per level; and a total of 9 240 pallets. With aisles that are 1.8 metres wide, it makes it difficult for turret trucks to manoeuvre freely for maximum performance. These trucks are better suited for operating where higher storage capacities, but lower throughput performance, are needed. The warehouse's capacity for growth is considerably hampered, and return on investment takes longer than with more agile material handling solutions. Scenario 2: Here, conventional racking is installed at nine vertical levels, each storing 798 pallets for a total warehouse capacity of 7 182 pallets. APC Storage Solutions SA recommends the use of three Artix articulated forklifts in this scenario, as they are capable of reaching the highest pallet positions of 12.5 metres in aisle spaces of just 1.92 metres. These trucks are also versatile enough to be used for loading and offloading trucks. The dynamic qualities of articulated forklifts make them ideal for operation in
high throughput warehouses. This level of productivity generates a shorter return on investment and accommodates warehouse expansions. Scenario 3: To further increase the storage capacity of the warehouse discussed in scenario 2, APC Storage Solutions SA utilises the double-deep principle – where forklifts, such as the Artix, use extendable forks to move pallets one in front of the other. This raises the storage capacity to an impressive 8 316 pallets. “In this type of operation, return on investment is accelerated due to the high storage capacity, performance, and agility afforded by the Artix. This type of warehouse solution also easily accommodates further expansions,” says Albrecht. Other products incorporated into optimised warehouse designs include mezzanine floors for multi-level item picking, electronic warehouse management systems, material handling equipment, and conveyor systems – turning APC Storage Solutions SA into a complete in-house warehouse solutions provider. “We integrate all these components into our warehouse
MATERIALS HANDLING designs. This allows us to optimise existing warehouse space as a much more costeffective alternative to acquiring additional warehouse space,” says Albrecht. Acquiring additional warehouse space typically means purchasing or renting new property. This is an expensive way to improve storage volumes as running costs, such as security, operating staff, energy, among many others, aren’t shared by the same warehouse facility. “We also consider global logistical planning, return of investment periods, and the added value of additional warehouse capacities. Our experienced designers and in-house consulting engineers make sure that optimal capacities and maximum efficiencies are achieved, while maintaining a profitable cost-per-pick in every warehouse that ultimately pays for itself,” says Albrecht. The company’s ability to manufacture in large quantities has driven down the cost of installing these world-class storage systems. “Our comprehensive solutions are further based on advanced safety systems that have been awarded the strict CE-Mark status, ensuring the safest possible warehouse operation,” concludes Albrecht. ■
African Review of Business and Technology - May 2012
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AUTOMOTIVE
Light Commercial Vehicles
LCVs and the light-fingered Light commercials are more likely to be stolen than other vehicles, often for the load itself - and industry is getting serious about cracking this global problem
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ell-known is the belief that light commercial vehicles (panel vans and trucks up to 3.5 tonnes conventionally, including matatus, bakkies and the various WA variants) are more frequently stolen in Africa than standard automobiles. But few local figures are available to support this. Fortunately a special study was made in the UK in 1998,(1) analysing statistics from a wide range of regional police authorities in that country. This supported the case conclusively, and there is little reason to suppose that the situation is any better here. In addition, a number of conclusions were drawn about what to do about reducing the level of light commercial vehicle theft. There’s no reason to suppose that implementing some of these here will do any harm. Indeed, this should do considerable good at keeping the incident numbers down. But extra measures need to be taken as well to keep up with Africa’s 50-plus different national sets of vehicle-theft conditions – and exceptionally poor neighbourhood lighting in most urban areas.
Panel vans are highly sought by criminals (Photo: David Brewer)
Vehicle selection Over a 12-month period in that one country, the theft of more than 47,000 LCVs was monitored – one in every nine of all vehicles recorded as being stolen on the police’s national database. A randomly selected 2,000 of these individual victims were then personally questioned by mailed-out questionnaire as part of a follow-up survey. Surprisingly, more than half replied. Vehicle numbers by type differ markedly of course, and it was also found that 19 LCVs per 1,000 were registered, compared with 21 thefts per 1,000 overall. The post-crime recovery rate for LCVs was 41 per cent, much lower than the overall recovery rate of 59 per cent. Just three types of LCV were found to account for 86 per cent of all LCV thefts. These three bodywork styles are widely used in subSaharan Africa: light vans derived from passenger cars; panel vans and small pick-up trucks. But this reflected the sheer number of such vehicles on the roads; in terms of relative risk costly tipper trucks were found to be the most vulnerable (39 thefts per 1000 registered).
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African Review of Business and Technology - May 2012
Almost exactly two-thirds of the light commercials stolen were diesel powered, and the average age of vehicles going missing was six-seven years. Five-year old models actually were at most risk of being stolen back in the 1990s. Interestingly, “the theft rate declined for newer LCVs, with a rate of just four thefts per 1,000 one-year old LCVs.” Two-thirds of the stolen vehicles monitored were removed from residential areas, and the evidence suggests that a high proportion were removed at night. Of course no-one actually knows this precise figure. In terms of preventative measures taken, security lighting was the most common, and parking off-road was uniformly found to be very useful. Security devices actually fitted to these vehicles at this time were few and flimsy, the removable, highly visible steering wheel lock being most common. These are widely available in African street markets today, along with the keys that fit an awful lot of them. And the really bad news is that three per cent of the companies that fell victim to this activity in the UK back in 1998 ceased trading as a direct result. The report incorporates more than a dozen bullet-point measures that are recommended as a result of this survey. These include: ● High-risk vehicles are most vulnerable; this includes certain brands in SSA. ● Identity marking of components like window glass helps. ● There is plenty of room for improvement in the design and fitting of mechanical security devices. ● Vehicles used in the construction industry are particularly vulnerable. ● Drivers benefit from security training, even when leaving the LCV for just a few minutes. ● Where a vehicle is parked overnight is critical; here in SSA within a locked compound with watchman is nearly always best. Much of this is talking-down ‘first-world’ advice of course, but most of the principles apply equally here. Perhaps the main technical advances made since this survey was conducted are in the general improvement of built-in security devices within vehicles of all types, including LCVs (though there is a lot to be learned from the manufacturers of HGVs, who of course have much bigger budgets to play with). The other is in the advance of GPS technology which now includes the availability of real-time vehicle (and individual load or even parcel) tracking systems, with variants categorised as ‘active’ and ‘passive’ types according to function and price. Many of these commercial systems are now linked to the various cellphone networks; in some countries not all LCV drivers are happy to use them. Finally, there’s something completely new called InVANET, which stands for Intelligent Vehicular ad hoc Networks. That will have to be dealt with on another occasion. ■ Notes: 1. Nature and extent of LVC theft, authors Rick Brown/Julie Saliba, HO Police Research Group
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<508<,3@ ;6<./ (5+ 4<3;0 7<976:, HHD. RESISTANT AND VERSATILE.
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AUTOMOTIVE
Tyres
Roads require safe wheels Research shows that driving with damaged tyres is one of the main factors contributing to accidents
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amaged and badly maintained tyres are the most common among widespread factors that contribute to accidents. Tyres are undoubtedly the most critical safety component on a vehicle as it affects traction, handling, steering, stability and braking. And an increase in the number of vehicles on the road can and does contribute to an increase in the number of road traffic fatalities. “Drivers often forget that only correctly inflated tyres can do their job properly, delivering the right level of handling performance. Our comprehensive tyre tests show that under- and also over-inflation can have a significant impact on the car’s overall driving behaviour and its stopping distance. But it impacts not only the car’s safety, it also decreases the tyres’ potential mileage and the car’s fuel efficiency,” says Lize Hayward, Goodyear Group Public Relations Manager. “Drivers frequently make one of three classical mistakes: either they don’t check their tyre pressure before departure, or alternatively, they check the pressure when the tyre is warm, which results in incorrect readings, or they put it at a level that does not take into account the weight of the car empty or fully loaded, it makes a difference,“ explains Hayward. Proper inflation for better driving stability Properly inflated tyres are necessary to keep the vehicle’s handling performance at optimal levels, especially its cornering and braking abilities. Many problems start with a gradual and unnoticed loss of pressure. “When a tyre is under-inflated, the car's weight is concentrated on the outside part of the tyre tread, increasing pressure on the tyre’s sidewalls (the tyres’ shoulders as we call them), rather than being spread out evenly across the width of the tyre. This means that as the tyre rolls, the sidewall heats up more than it should, and that affects both performance and safety. Under-inflation means less evenly distributed pressure on the road. It also reduces the tread area that is in direct contact with the road. These effects reduce the tyres’ grip and especially in combination with a heavily loaded car, can have a significantly impact on the car’s
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with passengers and luggage, the tyre pressure must be increased according to the car’s manual.
driving behaviour. Stopping distances become longer and cornering abilities can become sloppier and less direct, which can lead to uncontrollable driving behaviour. Our tyres are highly performing products, equipped with sophisticated technologies. To make use of their abilities to the full extent, the right tyre pressure must be applied”, explains Harris. Don’t kick your tyres – check them properly Tyres may loose up to 0.2 bar air pressure in a three-month time period, solely as a result of the everyday diffusion processes in the tyre. “Too many drivers make the mistake of thinking that a kick to their tyres or a visual check will tell them if their tyre pressure is correct. A visual inspection cannot detect a 0.2 bar decrease in pressure. Studies carried out by the European Union have shown that more than 64 per cent of all cars have underinflated tyres. Most drivers simply don’t check their tyre pressure often enough, which can have a significant effect on vehicle safety.” Apart from checking for under- or overinflation, drivers should also make sure they don’t set off on tyres that are in bad conditions. “Check your tyres’ tread wear before you depart. Is it still of sufficient depth? This is particular important for the car’s performance on wet roads. Is the tread worn evenly? Also check the tyre’s sidewalls for any damages”, adds Hayward. Heavy load Not only does a heavy load make the car more difficult to manoeuvre. A heavy load or towing a trailer puts extra strain on the vehicle and tyres. If the vehicle is fully loaded
African Review of Business and Technology - May 2012
Under-inflated tyres also cost money Under-inflated and over-inflated tyres don’t use the full tread area equally. Under-inflation leads to increased tread wear of the outside area of the tyre’s tread while over-inflation increases the tread wear of the inside area. Both have an effect on the tyre’s mileage. The tyre’s tread wears out faster and in an uneven manner. Underinflated tyres also need more energy to roll smoothly. The vehicle’s fuel efficiency decreases and motorists get less kilometers for every liter of fuel. “Drivers should take care of their tyres as they should take care of all other important safety related items in the car. Tyre pressure should be checked regularly - at least once a month - but especially before starting a long distance trip with a fully loaded car at high summer temperatures,” advises Goodyear’s Lize Hayward. What to do if you hit a pothole? According to various tyre fitment centres, vehicle and tyre damage due to potholes and deteriorating road conditions, increased dramatically. Some centres estimate that the number of tyres they replace due to road damage has doubled compared to a few years ago. Pothole damage is usually confined to tyres, rims, steering and suspension. If you hit a pothole and afterwards you notice a vibration, the steering wheel doesn’t centre properly or it pulls to one side, get the car checked immediately, as faults such as tracking or steering damage can lead to later expense or even an accident. Also check your tyres as damage may not be immediately obvious. Watch for the development of bulges on the tyre sidewalls, indicating serious internal damage. In this case, change the tyre immediately. Be on your guard for potholes, but don’t suddenly swerve to avoid them – it could be very dangerous, potentially causing you to loose control. “Remember speed kills, but unsafe tyres kill too,” said Andrew Bowren, Hi-Q General Manager. ■
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EQUIPMENT
Automotive Injector recoding equipment for engines
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eef Fuel Injection Services (RFI), a subsidiary of diesel engine and component remanufacturer Metric Automotive Engineering, recently made a significant investment to become the first South African diesel service centre to introduce state-ofthe-art equipment that writes an IMA code (injector production tolerance) to the engine control unit (ECU) of a diesel engine to achieve peak performance. “Our customers are already talking about the engine performance improvements being experienced and particularly the increased fuel efficiencies,” Warren Hauser, RFI workshop manager, says.
Stage 3 common rail injector repairs
®
®
African Review of Business and Technology - May 2012
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EQUIPMENT “The high pressures present in a diesel engine take their toll on the electronic injectors and with this progressive wear comes decreased engine performance. Despite this, the injectors remain usable and our new recoding system is able to determine the percentage of wear present in the injectors and recalibrate them to compensate for this lack of performance. “Recoding customers’ injectors doesn’t add to the cost of a service — this process is now an integral part of our standard repair offering.” RFI, one of the few Bosch-appointed EDC (electronic diesel control) service centres in South Africa, is an authorised service agent to all five leading diesel fuel injection systems - Bosch, Caterpillar, Zexel, Delphi, Denso and Stanadyne. The company repairs, overhauls and calibrates all makes of diesel injectors and injector pumps and specialises in common rail injectors and fuel pumps. It is the acknowledged market leader in CAT diesel injection systems, with services that cover all fuel injection componentry, from a single cylinder to multicylinder conventional and electronic components. “We operate one of the best equipped service, diagnostic and repair facilities in the country, using only OEM equipment and genuine parts, “Hauser says. “We invest in both technology and equipment on an ongoing basis, as well as technician training. All our test equipment is checked and maintained to SABS 0166 and ISO 9002 standards. “Top of mind at all times is minimising downtime for our customers through fast and efficient turnaround and accurate feedback. Our facility is custom built to ensure that workflow processes optimise the movement of components. We operate a rapid local collection and delivery service which further speeds up the process.”
Recoding of electronic unit injectors (EUI)
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UPS
POWER
Rotary versus static UPS Decisions over choice of the power supply for business can be difficult; but recent developments in alternatives has made the job a bit easier
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hoosing the right static uninterruptible power supply (UPS) for your business can be complicated enough. Standby, double conversion on-line, delta conversion on-line, line interactive - depending on your application, you have to trawl through a lot of data to get the best choice. Over the last few years, however, an alternative has reentered the market - rotary UPS.
A Cannon mains UPS and battery cabinet
What is a rotary UPS? It is a good question. You might think that any UPS with a flywheel was a rotary UPS while a UPS with banks of batteries was a static UPS. It's not an unreasonable start point but different UPS vendors and even different analysts make this a grey area. One definition is that a rotary UPS is any UPS whose output sine wave is the result of rotating generation such as a motor generator. Under this definition a UPS using a flywheel to store energy would not necessarily be a rotary UPS. Meanwhile, Wikipedia defines a rotary UPS as "a rotary UPS uses the inertia of a highmass spinning flywheel to provide short-term ride-through in the event of power loss. The flywheel also acts as a buffer against power spikes and sags, since such short-term power events are not able to appreciably affect the rotational speed of the high-mass flywheel. It
African Review of Business and Technology - May 2012
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POWER
UPS
A close-up of a risk management flow chart on a blackboard
is also one of the oldest designs, predating vacuum tubes and integrated circuits" The Wikipedia definition is consistent with the majority (not all) UPS vendors whose catalogues clearly define a rotary UPS as one where a flywheel is a major component of the UPS. For the purpose of this document, we will treat any UPS with a flywheel as a rotary UPS.
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What are the advantages of a rotary UPS? The advantages of a rotary UPS are: ● Long life. Most rotary UPS will last for up to 30 years. ● There are no hazardous materials to manage. ● Established technology dating back centuries. ● Better isolation from excessive surge such as lightning strike as there are fewer electronics susceptible to high voltage ● MTBF claimed to be up to 50% better than battery UPS ● Less heat to dissipate so no power loss due to cooling What are the disadvantages of a rotary UPS? The disadvantages of a rotary UPS are:
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Long life may lead to problems with getting parts such as bearings and engineers when things go wrong. Often built into fabric of data centre although newer generation can be container based. Long life and if built into data centre means it is hard to upgrade to more powerful option. Bearing replacement can be very expensive. More regular maintenance schedules Much heavier than battery solution. Much noisier than batteries. If a diesel/rotary hybrid, exhaust fumes must be vented carefully.
What are the advantages of a static UPS? The advantages of a static UPS are: ● Relatively easy to upgrade as new capacity required, especially if modular. ● Quiet. ● Preventative maintenance is quick and can be done quarterly or even half yearly. ● Can be housed in basement or in own rack in data centre. ● Batteries provide more power cover allowing greater time to start up standby generator.
African Review of Business and Technology - May 2012
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Often deployed as multiple layers providing protection against a single point of failure Initial acquisition and running costs over six year cycle lower than rotary.
What are the disadvantages of a static UPS? The disadvantages of a static UPS are: ● Batteries have limited life and should be replaced on average for ten-year life battery every 8 years for five-year life three years should be considered as problem area this also depends on battery build quality. ● Must be ventilated to remove heat from charging batteries. ● Battery disposal at end of life can be expensive and is subject to hazardous material controls. ● Electronics have a limited life. ● If using multiple tiers of UPS, harmonics can cause problems with synchronisation. Efficiency One issue that comes up frequently is efficiency of power conversion. Conversion rate here applies to the power from the grid to the UPS. In 2008, many manufacturers
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POWER
UPS
were using conversion rates of around 95% for static UPS and 90% for rotary UPS. As a result, it was easy for static UPS vendors to produce lifecycle numbers to show that a rotary UPS would be much more expensive. Today (2012), that gap has narrowed to just one per cent and, depending on the size of the UPS and the type of technology involved, has even reversed so claims over efficiency need to be examined carefully and not just taken at face value. Which is better? This is a chicken and egg question. Above, we have listed some of the advantages and disadvantages of rotary and static UPS. However, your choice of UPS may have to be based on more than just the pros and cons we have outlined. One serious question is whether this is a new build or an existing building/data centre. If, for example, you are building from scratch and you like the idea of a rotary UPS bear in mind that it will be hard to remove or replace the flywheel. There will be noise which will require soundproofing and you will need to allow space for engineers to replace bearings. In addition, your architect will need to allow for any vibration caused by the flywheel and be able to vent exhaust fumes from any diesel generator used to power the flywheel. Placing the Rotary UPS outside in a container, irrespective of new build or existing building may require permits for the constant noise from the flywheel but noise and fumes from any generator will be no different to any restrictions on generators required to support static, battery UPS solutions.
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The ability of a rotary UPS to last for up to 30 years, subject to parts and maintenance can make it a cheaper long term investment than a static UPS where the batteries need to be changed regularly. However, the higher servicing requirements and the question of how to replace when it is undersized have to be addressed. If the rotary is internal, replacement is a significant issue. External is just a case of swapping the UPS out for a new one so external rotary installation is actually a much better solution than building it into the fabric of the building. In a very noisy electrical environment, on a large industrial estate with engineering works, for example, a flywheel is likely to be more robust than a static UPS. This is because the flywheel is more effective at absorbing spikes in the power input, especially those associated with large engineering equipment and lightning strikes. One last major issue to consider is redundancy. Rotary UPS are often installed as a single item, not in pairs. Static UPS are generally installed in a failover mechanism
African Review of Business and Technology - May 2012
and in a tiered approach from modular cabinet to site sized systems. All critical infrastructure should be installed as a redundant solution otherwise you are simply creating another risk for the business. Conclusion Choosing rotary or static depends on your application, the availability of engineers and long term costing model. Rotary is currently playing the green card because it is, at its more basic, nothing more than a big chunk of spinning metal. However, the long term implications of support and maintenance means that many companies will choose static over rotary. â–
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EQUIPMENT
Power Volvo Penta and Sandvik collaborate for success
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ith rapid advances in technology and emission legislation, not only the choice of technology but also the choice of engine supplier has become an important issue for equipment manufacturers for the construction industry. In 2011, Volvo Penta and Sandvik Mining and Construction AB signed a cooperation agreement with the goal to enhance the long-term competitiveness of Sandvik’s products. Sandvik has introduced Volvo Penta engines in several models from its product lines for crushers, drilling rigs, loaders and haulers. “Volvo Penta has been receptive to our requirements during the development and we are pleased with the engineering support they provide us”, says Chris Jobburn, Senior Product Support Engineer at Sandvik Construction. Installing after-treatment systems have proven to be a major issue for many equipment builders in the US and the EU. For Sandvik engineers, the SCR technology has not been a major challenge: “ This is just another regular engine installation ”, commented Seppo Karhu, Manager for engine installations at Sandvik Mining, after the first-ever loader with SCR for mining and tunnelling applications had been developed. “With the SCR technology, ventilation rates become so low that it is no longer toxic emissions, but CO2 or fuel consumption that sets the limits. And the Volvo engines have low fuel consumption”, says Olli Koivisto, Global Product Line Manager for Load and Haul at Sandvik Mining. www.volvopenta.com
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Integrating the future of engine technology Deutz AG has introduced, for the first time, an entire range of Deutz engines and DVERT components for the EU Stage IV/ US EPA Tier 4 emissions standards. The 'baby' of this big family is the TCD 2.9 L4. Specially developed for very tight and narrow installations, the ultra-compact, recently developed TCD 2.9 L4 covers the 30 to 55.4 kW power range. Available either as a naturally aspirated or turbocharged engine, with or without charge air cooling, equipped with cooled external exhaust gas recirculation and a common-rail high pressure injection system, the compact four-cylinder in-line engine offers high specific power and torque combined with very smooth running characteristics and achieves torque values 50 per cent greater than comparable competitors' engines. Powerful and completely redesigned: the TCD 3.6 L4 industrial engine covers the 55.4 to 97 kW power range. With its outstanding 510 The TCD 2.9 L4. Specially Nm of torque and developed for very tight and maximum power of narrow installations 97 kW, this extremely compact four-cylinder engine has penetrated a power category which has hitherto only been served by engines of significantly greater cubic capacity; at engine speeds of 1,400-1,600 rpm, its performance is comparable with that of a supercharged 4.5 litre Tier 3 engine. Rigorous engine downsizing now also provides customers with more installation space for the Tier 4 components. For the 80 to 115 kW power range, the Deutz portfolio includes the water-cooled TCD 4.1 L4 engine which generates maximum torque of 610 Nm at engine speeds of 1,400 to 1,600 rpm. The engine benefits from an exhaust-gas aftertreatment system with a sealed diesel
African Review of Business and Technology - May 2012
particulate filter and regeneration achieved either by combustion or controlled air throttling. The water-cooled TCD 6.1 L6 covers the 100 to 180 kW power range and, with its maximum torque of 1,000 Nm, promises a performance enhanced by up to 25 per cent compared with its predecessor. This 6-cylinder in-line engine, with its turbocharger and charge air cooler and electronically controlled Deutz common-rail (DCR®) high pressure injection system, boasts outstanding economic efficiency, long engine life and extended servicing intervals. The 160 to 250 kW power output of the water-cooled 6-cylinder TCD 7.8 L6 engine makes it the most powerful engine in the medium power category. Equipped with a turbocharger plus charge air cooling, cooled external exhaust gas recirculation and the 2,000 bar Deutz commonrail (DCR) high pressure injection system, this engine, which generates a maximum torque of 1,400 Nm, is designed for high stress applications. Compared with the earlier model, a distinctive feature of the TCD 7.8 is that it uses up to 5 per cent less fuel. The 240 to 390 kW power range is covered by the water-cooled TCD 12.0 V6 engine. An electronically controlled wastegate turbocharger ensures optimum equipment performance. Designed for high loads, the TCD 12.0 features outstanding ruggedness and long servicing intervals, thus making certain that operating costs are optimised. Its compact V-design plus front and rear power take-offs with up to three auxiliary drives reduce installation costs and increase the number of potential applications. www.deutz.com
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MANUFACTURING
Compressors
Compressed air for expanded profits Manufacturers in a huge range of industries now rely on compressors to keep their production lines flowing - but, for positive results on the bottom line, power consumption has to be kept under review
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he use of compressed air is growing widely in African manufacturing, wherever flexibility and versatility of operations and safety (electrical power and water don’t mix!) are required. Many building contractors could not do without it, either. However, certain steps need to be taken if this handy ‘new’ source of power, supplied by leading manufacturers such as Atlas Copco, CompAir and Ingersoll Rand, is to be a really economic proposition in cash-strapped 2012. Avoiding excessive power consumption is the main consideration, and these cost-saving operating guidelines apply equally whether the compression technology employed is of positive-displacement (reciprocating and rotary compressors) or dynamic type (centrifugal and axial-flow compressors). Technology and economy Most indoor units are powered by electric motors, but for outside and roving use a diesel-
fuelled compressor mounted in a weatherproof container or on a handy trailer is an obvious solution. Just as with an engine generator set, economy in operation comes from sizing the compressor properly so that it is always working at its optimum output rate. And, as near to always as possible, is supplying air that is actually required (in other words, in continuous manufacturing processes such as food packaging). The second key consideration is to always choose the right compression technology. Not only are the air flow mechanics critical but so is the number of compression stages by means of which the required pressure is reached. It nearly always make sense to employ a multi-stage unit which raises the pressure in steps, with an efficient cooling unit operating to cool the air in between. A typical multistage reciprocating compressor as used in one of North Africa’s airjet-loom textile factories will have water cooling facilities installed between the stages; this means relatively high supply and installation and maintenance costs but should cut power
Compressors, such as this Doosan 12/250 model, can be truly so9und economic propositions
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African Review of Business and Technology - May 2012
consumption (for a typical industrial 250hp compressor, as widely used in the small-scale weaving industry) substantially. Three-stage machines give even higher efficiencies and are typically available in sizes up to 5,000hp. Third, in line economy-wise, comes the importance of installation of a proper control system, electronic and automated if possible so that the input power is always matched to the demand for air at the other end. Some manufacturers choose to have more than one compressor available so that all levels of air demand can be catered for efficiently, at all times. Finally, of course, there comes the issue of finding and eliminating all leaks. These can appear anywhere and at any time, and it should be someone’s job to be on the listenout for them all the time. Hoses and couplings are the usual sources; vibration and perishing of materials are the usual culprits. As an alternative solution, to help specifically with this power-consumption problem, German manufacturer Kaeser Kompressoeren offers a novel and very flexible system which they call ‘SIGMA Air Utility’. “Just buy the air you need,” they say, pointing out that most users have very little idea about how much the air they are actually making effective use of is costing them. Instead they recommend purchasing input air on a metered basis, just as with any other utility service. As well as the claimed reduction in air costs – oil-free or not – this offers access to the latest compressor technology at all times (hence the best energy economics anyway), exceptional reliability and maximum availability 24/7 via the company’s teleservice and systemspecific back up solutions package. ■
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DL420A
Doosan. The closer you look, the better we get. In construction, quarrying, recycling, waste management and many other industries, the ambition and vision of a project depends on the performance and reliability that only a truly great worldwide manufacturer such as Doosan can offer. With a comprehensive range including Excavators, Wheel Loaders and Articulated Dump Trucks, Doosan equipment optimises productivity and provides solutions for every challenge.
www.doosanequipment.eu
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EQUIPMENT
Manufacturing Intelligent flame detection technology MSA, which manufactures sophisticated safety equipment and is represented by MSA Africa, has launched a range of flame detection devices designed to detect unwanted fires and provide alarm outputs from the detector, while maintaining superior false alarm immunity. Heading the range is the FlameGard 5 multispectral infrared (MSIR) flame detector, which features a sophisticated Neural Network Technology (NNT) system capable of detecting typical fires, such as those produced by alcohol, n-heptane, gasoline, jetfuels and hydrocarbons. The NNT flame discrimination algorithm classifies the output signals from the MSIR sensor array as either fire or non-fire. “The combination of MSIR/NNT technology makes the device highly immune to false alarms caused by lightning, arc-welding, hot objects, and other
Systems that offer safety and availability
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impler installation and maintenance, elimination of unplanned shutdowns and the ability to be supplied as a complete, certified package are just three of the benefits of a highly innovative new valve system for the oil, gas and chemical sectors from Norgren, an international market leader in pneumatic motion and fluid control technologies. Available in aluminium or stainless steel to suit both upstream and downstream applications, Norgren RVM (Redundant Valve Manifold) products eliminate the need to create separate systems combining valves and pipes by incorporating all functions governing both safety and availability in a convenient, simple to install, low-maintenance integrated valve control unit. The products are designed to replace piped or ‘nippled’ systems, providing redundancy in the event of valve failure while increasing time intervals between plant turnarounds and delivering a variety of circuit functions without the need for pipework. www.norgren.com
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African Review of Business and Technology - May 2012
sources of radiation,” explains Robbie Taitz, Marketing Manager - Gas Detection Products, MSA Africa. The serial communications port allows 128 units (247 using repeaters) to be linked up to a host computer using the ModBus RTU protocol. The communications register provides alarm status, fault and The FlameGard 5 other information for operating, multi-spectral infrared (MSIR) flame detector troubleshooting or programming the unit. “The continuous Optical Path Monitoring (COPM) checks the optical path integrity and the detector’s electronic circuitry,” says Taitz The electronics of the FlameGard 5 MSIR detector is housed in a stainless steel, explosion-proof enclosure. The entire FlameGard 5 Flame Detector range is SIL 3 suitable, as well as ATEX, IECEx, CSA, and FM approved.
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CONSTRUCTION
Market Analysis
A new direction for engineers and builders? Recent years have been uncertain for many construction firms - however, one constant is the insatiable demand for infrastructure in all forms
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here is a fundamental shift in focus for nearly all players in the sector. The ‘old’ imperatives of commercial, residential and industrial building projects have taken second place in many geographies to energy, natural resources, transportation, communication and technology, and other vital civil and social infrastructure projects. Much of this change is driven by the pressing challenge of urban growth; with the proportion of the world’s population living in cities set to rise to more than 70 per cent by 2050,(1) there is immense pressure to provide an effective and reliable support network to the teeming millions. And while the continuing economic instability is impacting many parts of the industry, infrastructure is so vital to growth that even the most cashstrapped governments will inevitably give it a higher priority – or face a drastic change in lifestyles for their people. Worldwide, the expected cost for infrastructure over the next forty years is approximately US$70 trillion.(2) The new emerging market environment Engineering and construction companies are changing to meet the growing demands of infrastructure, with the traditional general engineering providers and contractors giving way to larger, more diversified businesses with specialised skills. Winning new contracts is increasingly about having the right expertise, so the battle for skilled resources is likely to intensify even further, with a possible rise in acquisitions to buy that expertise. New infrastructure projects are expected to be on a huge scale, particularly in emerging markets such as India, China and Brazil, so size and global reach will also matter. With scale comes complexity as the global industry players navigate a tough political, commercial, regulatory and governance environment which will test their risk management ability to the maximum extent. Margins on mega-projects can be severely impacted by unforeseen schedule delays, sometimes customer driven and sometimes self-inflicted. Although the sector has invested considerably in risk management in recent years, a number of high profile project failures in the past twelve months raises question marks over the effectiveness of some of this investment.The shape of the industry is changing as the main players
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African Review of Business and Technology - May 2012
seek to optimise costs, focus on tax efficiencies, streamline supply chains, improve information technology systems (IT), capitalise on emerging markets, and grow through mergers and acquisitions. But will these efforts be enough to succeed? As the world rises to meet the great infrastructure challenge of the next decade, what role will engineering and construction companies play? Positive future expectations The latest KPMG Global Construction Survey gauges the views of many of the senior executives of leading engineering and construction companies from around the world. Of key relevance is the finding that, over the next 12 months, the engineering and construction industry appears to be fairly optimistic about backlog – even in the troubled Europe, Middle East and Africa region, which is a surprising response given the uncertainty over the state of the Euro. Only a small proportion of respondents forecast a decline in backlog and half expect an increase. Asia Pacific respondents are the most confident of continued improvement, again fuelled by the ongoing construction boom in China and Hong Kong, focused primarily on infrastructure. Interestingly, the smaller-to-medium sized companies involved in the survey expect to see a substantial rise in backlog, probably because any wins they have enjoyed will have a bigger impact proportionately on their smaller portfolio. With many major infrastructure projects on hold, modest repair and maintenance contracts are the order of the day, which are more likely to be picked up by the smaller, locally-focused contractors. Backlog forecasts for bigger firms are steadier with a majority (61 per cent) anticipating no change, which reflects their greater diversity. ■ Notes: 1. United Nations, Department of Economic and Social Affairs, Population Division (2011). World Population Prospects: The 2010 Revision 2. Booz Allen Hamilton, Global Infrastructure Partners, World Energy Outlook, Organisation for Economic Co-operation and Development (OECD), Boeing, Drewry Shipping Consultants, U.S. Department of Transportation
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CONSTRUCTION
Concrete
Understanding the standard for paving The implications for South African industry of recent amendments to the SANS 1058 paving block standards
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2012: As the leading supplier of concrete brick, block and paving-making machinery and technology in Africa, PMSA is assisting its clients and local concrete paving block manufacturers in understanding and complying with the new SANS 1058:2010 standard for concrete paving blocks, which was officially introduced in September 2011, as well as the most recent amendment to the standard. PMSA marketing and sales manager Quintin Booysen points out that the most important aspects of the amendment is the fact the tensile splitting strength test and abrasion test compliances have been modified. “It is vitally-important that the new SANS 1058:2010 standard and amendments are effectively communicated to the industry and to testing laboratories, as some manufacturers are struggling to consistently meet the criteria for compliance.” A side view of the abrasion tester
SANS 1058 - What has changed? Now (SANS 1058 :2012 Edition 2.1 - Amendment) Was (SANS 1058 :2010 Edition 2) Previous (SANS 1058: 2006)
Class 30/2.0 Class I Class 25 (25MPa)
Class 40/2.6 Class II Class 35 (35MPa)
“According to the Concrete Manufacturers Association (CMA), Class 30/2,0 is officially rated at 2,0 MPa tensile strength, and is indicative of a compressive strength rating over 30MPa. Class 40/2,6 is rated at 2,6 MPa tensile strength, and approximates a compressive strength rating over 40 MPa,” adds Booysen. He also highlights the fact that the two strength ratings within the standard have been renamed for greater clarity. “The SANS 1058:2010/2012 standard includes two new performance measurement techniques, namely; tensile splitting and abrasion
A side view of the abrasion tester
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African Review of Business and Technology - May 2012
testing. This sets a higher quality benchmark and is more comprehensive than the SANS 1058: 2006 standard it replaced, as research has shown that paving blocks are rarely crushed under load. Abrasion, cracking and break-up are the main causes of paving failure.” The amended standard SANS 1058:2012 restricts the average mass loss per block to 15 g after being pounded by 600 16 g ball bearings for 60 minutes in a rotating steel box. A water absorption test had been included in the original SANS 1058: 2010, although the requirement has been left out of the amended SANS 1058:2012, it remains as an informative and voluntary part of the standard according to the CMA. Booysen continues: “The SANS 1058:2012 standard, therefore; attempts to replicate an accelerated and more accurate performance of paving bricks, whereas the previous SANS 1058 : 2006 testing method was more focused only on compression strength testing, which does not suitably simulate the real conditions that pavers are exposed to in everyday applications.” PMSA encourages manufacturersto get in contact with the CMA for greater details on the amendments. Booysen admits that it will be a challenge to disseminate details of the new standard and the amendments to the market; however, he does point out that PMSA manufacturers the abrasion testing machinery, and provides the necessary training to any individuals or companies that require it. “As a market-leader in concrete brick, block and paver making machinery, PMSA is committed to providing a broader base of knowledge to a wide range of clients, in order to ensure that the standards are adopted. This also ultimately ensures that specifiers of the architectural, engineering and construction industries benefit from the new standards for paving brick manufacture,” he concludes. ■
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CONSTRUCTION
Nets
Ensuring safety does not slip through the net R
ope access specialist Skyriders is fully equipped to provide a comprehensive range of at-height concrete inspection, maintenance and repair services, in addition to providing temporary safety platforms to a number of industrial operations. Skyriders marketing manager Mike Zinn points out that in addition to scaffolding, hydraulic aerial platforms, suspended platforms and rope access, the company also supplies and installs nets for numerous atheight applications. “Nets are ideally-suited to construction and maintenance projects requiring different phases of work, such as the
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undersides of bridges, the undersides of silo roofs and stadium roofs, where access is a limitation. What’s more, nets are quick to install and dismantle and they are the perfect option for training contractors, as they are cost-effective, can support relatively heavy loads and ensure that objects such as tools and debris do not fall to the ground,” he explains. Commercial experience Zinn highlights the fact that Skyriders makes use of nets manufactured by commercial netting expert Industrial Netting, which has more than 42 years
African Review of Business and Technology - May 2012
experience in the market. Although netting is a safe at-height safety solution for industrial projects, Zinn does admit that a number of people remain wary of this safety platform. “Nets do not look as solid and sturdy as scaffolding and, as a result, people are put off the idea of using it. Contrary to this belief, nets are in fact very safe and easy-touse. The versatility of nets means that they can be installed almost anywhere, and provide constant access to contractors, without disturbing the project.” Zinn points out that the only real disadvantage of using netting is the fact
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Nets
CONSTRUCTION
Looking ahead, Zinn is confident that Skyriders will obtain a number net installation projects in the future. “Many companies are coming to the realisation that netting is just as safe, but considerably cheaper and more versatile than scaffolding. Due to these distinct advantages, I believe that in the future we will see a trend where nets replace scaffolding for a number of construction projects.”
Nets are ideally-suited to construction and maintenance projects
that a qualified rope access team is required to install and dismantle the nets. “Contractors cannot install or dismantle the nets themselves, as the process requires
skilled rope access technicians to undertake the project, and Skyriders has some of the most experienced and qualified teams in the business.”
Solutions to challenges Having started from humble beginnings in 1988 as a high-rise window cleaning operation, Skyriders is today one of the oldest and most trusted South African rope access companies that provides solutions to numerous above-ground challenges, including; structural installations and inspections, high-pressure cleaning, waterproofing, bird-proofing, welding, concrete repairs and non-destructive testing. With a zero-fatality record spanning more than 22 years, Skyriders provides rope access-aided inspection, non-destructive testing (NDT) and maintenance-related services to the power generation industry. ■
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African Review of Business and Technology - May 2012
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CONSTRUCTION
Water Africa/West Africa Building and Construction
Technologies for water, businesses for building There is a rich portfolio of exhibitors, innovators, solutions and services awaiting those attending this year’s edition of Water Africa and West Africa Building and Construction
W
ater Africa and West Africa Building and Construction, which is scheduled to be held in Abuja, Nigeria, on 23-25 May 2012, features an impressive portflio of exhibitors with distinctive solutions and services to serve project completion in the region.
delivery of building materials. Also on show is Balmoral Tanks, which is a single source designer of sewage treatment plant, rainwater harvesting systems, fuel oil storage tanks, GRP and hot press steel sectional water tanks. Part of the Balmoral Group is Horseley Bridge Tanks, which specialises in wastewater treatment plant and disposal, helping its customers to Advanced solutions and systems ensure value for money, long term Amongst the exhibitors is Atlas Copco, which performance and protection of public health develops and manufacture industrial tools, air and the environment. And Baur’s testing and compressors, construction and mining measurement technology prevents damage to equipment, and assembly systems, and offers networks and systems, allowing for accurate associated service and equipment rental, planning of investment for maintenance, and operating through divisions within three the location faults in precise fashion, with business areas: Compressor Technique, minimal delay. Construction and Mining Technique, and Added to the mix is CFAO, which offers a Industrial Technique. Another exhibitor, AVK, network and distribution for automobile and also works across three business units: in its pharmaceutical products in Africa, alongside case, these are: AVK Water, which handles production and distribution of beverages and valves for water and gas distribution, sewage plastic products, and the provision of treatment and fire protection; AVK Industrial integrated IT products and solutions. CFAO Valves, which is responsible for customised operates in 34 countries, 32 of which are in valves and accessories as well as complete Africa. And Festo, which supplies automation solutions; and AVK Advanced Manufacturing, technology and industrial training and which addresses manufacturing competence education programmes to help maximise for core technologies. Expected, also, is African productivity and competitiveness. On show, Supplies Ltd, which secures distribution also, is Wavin, which provides solutions for safe channels and trains partners in for the sale and distribution of drinking water; sustainable management of rainwater and waste water; and energyefficient heating and cooling for buildings. GE is here with its Water division, providing innovative and responsible solutions to meet pressing energy and water challenges. Ion Exchange, meanwhile, recognises that water is perhaps the resource most under pressure in the region, and serves to address The Niger Basin Authority will represent defined collaboration on key resource increasing pollution through an integrated approach of use in the region
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African Review of Business and Technology - May 2012
environmental management. And Wagtech Projects specialises in the manufacture and supply of laboratory and field testing instruments for environmental, agricultural, health, education, mining and construction applications. In keeping with such production and provision, Waterleau offers environmental services and solutions to both public and private sector organisations. Running along the theme of ‘economy in building’, Knauf produces building materials and construction systems. Supporting efforts at efficient and cost-effective construction is Saint-Gobain S.A., which designs, manufactures and distributes building materials, providing innovative solutions to meet growing demand in emerging economies, for energy efficiency and for environmental protection. Indigenous innovators Dando Drilling, on the other hand, offers the benefits of over 140 years experience in the design, manufacture and sales of water well drilling rigs, mineral exploration drilling rigs, geothermal & geotechnical drilling rigs, borehole servicing rigs and drilling equipment. And Dantata & Sawoe also offers experience, now in its fourth decade of construction in Nigeria, with over 4.000 employees and a fleet of over 1,000 mobile vehicles, trucks and specialist equipment. Another Nigerian firm, Eureka Metals Limited, allying a range of steel products to a highly skilled engineering team. Representing a share of public sector interests, the intergovernmental Niger Basin Authority will highlight co-operation in managing and developing the resources of the basin of the River Niger. A broad spectrum of interests is also represented at the event by the Nigerian Society of Engineers, which enhances professional competence and development, and retains a commitment to collaboration with government, industry, commerce, academia and society. ■
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EQUIPMENT
Construction High-frequency concrete vibrating equipment
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uilders can produce more durable concrete by making use of a new range of electric high-frequency concrete vibration equipment introduced to the local market by OLI South Africa, which forms part of the WAMGROUP - an internationally-recognised specialist in the manufacture of screw conveyors and various other bulk material handling and processing equipment. OLI South Africa managing director Emilie Marchand points out that concrete vibration equipment removes air from the mixture; thereby, producing a more durable concrete that does not have large cavities, which cause a weak point in the concrete known as ‘honeycombing’.“Proper vibration of concrete contributes to better quality building, and reduces the need for maintenance or repairs to damaged structures caused by faulty construction or low-grade vibrated concrete.” Although a number of local civil engineers and civil engineering companies make use of high- frequency concrete vibration equipment, Marchand admits that the equipment is not popular in the building trade, due to the fact that it is believed to be
capital intensive. “It is a common misconception in South Africa that High Frequency concrete vibrating equipment is unaffordable. It is however, cheaper in the short-term and long-term to run electric high-frequency concrete vibrators, due to their low need for maintenance. What’s more, the quality of vibrated concrete produced reduces the risks of faulty construction for contractors,” she explains. Marchand highlights the fact that the OLI range of High Frequency concrete vibration equipment can be ordered with an automatic shutdown function, called thermal protection, which monitors the heat of the machine and switches it off before damage occurs, if the machine is left running without concrete. “High-frequency vibrators bring numerous advantages to the construction industry, as new developments and innovations mean that this equipment is significantly cheaper and easier to maintain compared to standard, mechanical vibrators.
The EVO range of single phase high frequency vibrator machines also boast integrated inverters, making these machines much lighter and less bulky than the mechanical vibrators generally used in the industry,” she continues. “Components for the machines such as vibrator heads and spares are also available locally throughOLI South Africa; thereby, providing contractors with a value-added after-sales service offering and lesser downtime.” www.olisouthafrica.co.za
Taking bolting to the next level Atlas Copco has taken underground rock bolting and reinforcement operations to the next level with the introduction of the new Boltec EC, equipped with the sturdy, accurate and stable BUT 45 boom. Boltec EC is a fully mechanised bolting unit based on Atlas Copco’s already renowned safe bolting platform that provides high productivity and precision in the installation of rock bolts in lengths of 1.5–6m at heights of up to 13.5m. The new rig is designed to improve productivity, safety and comfort for the operator. Paul O’Neill, Product Manager at Atlas Copco, explains, “This new rig is fast, accurate and stable for bolting in large mining and tunneling applications. With Atlas Copco’s already high-tech platform we are now
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offering several levels of automation to suit customer requirements. This includes great features such as Bolt Angle Indication and Bolt Plan Navigation.” BUT 45 boom The Boltec EC is built on a sturdy, articulated carrier with four-wheel drive. It is equipped with the new BUT 45 heavy duty boom for direct, fast and accurate positioning between holes and has a reach of 13.5m. The BHR
Atlas Copco has taken underground rock bolting and reinforcement operations to the next level with the introduction of the new Bolec EC, equipped with the new sturdy, accurate and stable BUT 45 boom
African Review of Business and Technology - May 2012
20 feed rotary unit is versatile and robust and also has a double rotation unit for ±190 degree feed roll-over and ±135 degree feed rotation. Rock drill data COP 1435 Designed for a hole range of 35–64mm, the rig is equipped with the COP 1435 (14KW) rock drill which has a frequency of 80HZ and an impact energy of 170kj, providing up to 30 per cent higher penetration rate than the already successful COP 1132. www.atlascopco.com
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MINING
WAMPEX
Open to opportunities in mineral operations Explosive growth potential reflects investment opportunities in West African mining operations at WAMPEX
I
t is one of the world’s fastest-growing regions for gold production. West Africa is also abundantly endowed with many other mineral resources and offers huge opportunities for global and local companies. The only impediment to its success is an unreliable power supply. Eight new mines have started production in the last three years, with another 13 mine projects planned for the region. Ghana alone has nine major mines and 600 smaller mining operations, all looking for international partners to scale up production. “Local mining companies lack the capital and expertise for this level of operation, so we welcome companies with expertise in Africa’s resources sector to become involved in this development opportunity,” says Moses Asaga, Chairman of Ghana’s Parliamentary Selection Committee of Mines and Energy.
A prominent role in promoting production Playing a prominent role in facilitating these kinds of developments for the last 17 years, the biennial West African Mining and Power Exhibition (WAMPEX), and its associated conference WAMPOC will attract international exhibitors, visitors and delegates to Accra from 6 to 8 June 2012. “The combined annual gold output of Ghana, Mali, Guinea, Burkina Faso, Mauritania and Ivory Coast has increased by 65 per cent in five years, to roughly 6.7mn ounces,” says John Thomson, Managing Director of Exhibition Management Services, co-organiser of the exhibition. “These countries will produce 8.5mn ounces a year by 2013. But to do this they will need international partners.” The 2012 Expo and Conference will see regular participants in the form of mining houses Anglogold Ashanti, Newmont, Goldfields and Golden Star Resources taking part. “Newmont is the world’s second biggest gold producer, and is planning to double its current production in Ghana to more than a million ounces by 2014,” adds Thomson. “Another company committed to West Africa is Canadian producer Iamgold Corporation - of its one million ounce annual production, over 40 per cent comes from mines in West Africa.” Randgold Resources plans to produce about 1.2mn ounces of gold a year in the region by 2014, a 300 per cent increase on the current output. Australian-based Resolute Mining Limited is spreading its activities to West Africa in search of more development opportunities. Mining suppliers at WAMPEX 2012 Explosives supplier BME is a repeat exhibitor at this year’s WAMPEX show in Accra, where it will be exhibiting its new AXXIS electronic detonator system. The new system provides miners with accurate, safe and controlled blasting, increasing mine safety, efficiency and profitability. Demand for the AXXIS system is strong, particularly in iron-ore and gold mining. “We’re also considering setting up more manufacturing facilities in West Africa to handle the demand for our blasting products,” says Ralf Hennecke, general manager of international marketing. “We’ve already reaped some rewards from earlier investments in new manufacturing facilities and new products for the mining sector.” First-time exhibitor Liquid Automation Systems (LAS) will be showcasing its Clean Break spill prevention couplings for fuel and chemical applications in mining operation, at WAMPEX 2012. Repeat exhibitor Atlas Copco Ghana recently announced some new products and upgrades to existing equipment for the mining industry. In December 2011 the company launched the Boomer M1L, a robust new single boom drill rig for low vein mining. It will be on display at WAMPEX. “This is the perfect rig for the rough and tough world of low vein mining in room and pillar operations, especially where there are long distances to be covered,” says Peter Bray, Product Manager at Atlas Copco’s underground equipment division. ■
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EQUIPMENT
Mining Upswing in orders for MBE screens
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BE Minerals is also preparing two replacement USLE horizontal screens for Anglo Coal’s Goedehoop mine to replace screens originally supplied in 1998 and which have now reached the end of their lifecycle. The new screens feature modifications to the side plate mounted drive. The company is also addressing an order from Botswana-based Debswana for a VSLE horizontal motor driven screen for its Orapa mine, as a replacement for a screen supplied in 1995. Each screen is designed with sound mechanical features, including vibration damping, side plates, cross members and the appropriate feed and discharge chutes. All types of screening surfaces can be accommodated. MBE Minerals is currently involved in an initiative to re-introduce its range of vibrating feeders, designed in Germany and locally manufactured, to the local mining industry. These feeders are available with feed capacities of 100 tph up to 3,000 tph and are suitable for all applications where controllable discharge of bulk materials is required.
A USL-D double deck screen for coal sizing and washing
“The design of our vibrating feeders is based on decades of experience,” he adds. “The conveying system comprises a rugged steel design, supported on compression springs serving as vibration isolation.”
African Review of Business and Technology - May 2012
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SOLUTIONS
Environnment Inspection technology simplifies access
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outh African contractors and engineers can benefit from Ridgid SeeSnake drain and sewer inspection equipment, supplied and distributed by Dowson and Dobson Industrial - a supplier of industrial products and aftersales service solutions. Dowson and Dobson director Terry O’ Kelly points out that the entire Ridgid SeeSnake line of inspection equipment is built to endure the toughest residential, commercial and industrial environments. “Dowson and Dobson’s range of SeeSnake inspection equipment consists of an innovative camera and transmitter system that enables the user to obtain an exact diagnosis of line problems in all types of industries,” he says.
The Ridgid SeeSnake range is specifically-designed for general inspection and for identifying any complications in applications such as ceiling and wall cavities, in addition to ducts and engines, notes O’ Kelly.
The Ridgid SeeSnake inspection equipment is built to endure the toughest residential, commercial and industrial environments”
“The SeeSnake range of reels and cameras are the best in the industry, due to the fact that they are robustly-built for unrivalled performance and longevity.” O’ Kelly highlights the fact that the SeeSnake camera head comes standard with a scratch-resistant, debris-shedding sapphire crystal lens, for improved visibility. “High-power adjustable LEDs behind a thick polymer plastic window create a 410 000 CCD pixel resolution. What’s more, the small camera diameter size of between 22 mm and 35 mm creates a wide-angle pipe view, which enables the user to clearly see the entire pipe wall.” www.dowson.co.za
New sewage sampler enables real-time control Hach Lange has launched an innovative new wastewater sampling system, which will open up a new world of opportunity by enabling water companies to continuously monitor sewage at the plant inlet. In the past, it has been almost impossible to monitor influent because of the physical and biological challenges that sewage presents – ragging, biofouling etc. However, following trials at a number of UK wastewater treatment plants, engineers at Hach Lange have developed a new sample preparation system that works extremely well in these difficult conditions. The new sampling system employs an innovative design that overcomes the problems of continuous sampling from primary sewage. This includes a number of novel design features including bespoke filter cartridges, which are cleaned by backflushing and air scouring. The ability to monitor influent has been a major objective for many years; previous attempts have involved capital work to divert flow through a semi-protected channel. However, this can involve tens of thousands of pounds so Hach Lange believes that the development of an effective sampling system is great news for the industry. Explaining the importance of this new sampling technology, Andy Thornton, an optimisation specialist at Hach Lange says, “The most exciting aspect of this development is the fact that the sampler enables the implementation of real-time control, which is improving compliance, reducing waste and bringing substantial cost savings to many treatment plants.”
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African Review of Business and Technology - May 2012
A Hach Lange filter and hose
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EQUIPMENT/ CLASSIFIED
Green energy technologies seen as growth engine Environmental concerns are at the top of the list with Doosan, which sees ‘Green Energy Technologies’ as a platform for strong growth. Doosan Infracore Construction Equipment has launched several new products that meet the latest emissions regulations, whilst offering features to increase productivity and reduce fuel consumption. The main focus of Doosan Infracore (DI) in the green energy technology field is to develop the optimum intelligent excavator system for maximising operational efficiency. Hybrid excavators, equipped with a diesel engine and a device to store electricity to help reduce CO2 emissions and improve fuel efficiency, are now under development. In addition, Doosan Infracore’s commitment to “Green Energy Technologies” will continue with the development of a concept excavator CX, which is designed to be environmentally friendly and economically efficient. Also being developed by Corporate, Business Doosan Infracore are unmanned Diplomatic & Tourist Shuttle robot excavators that combine ‘i& Transfer Service Hand’ technology and an in and around Cape Town intelligent excavator system, Tel: +27 82 837 2973 whereby an operator wears an www.shuttlescapetown.com
Doosan Green Energy Technologies are expected to deliver strong growth
electronic sensor detection device to manipulate the excavator remotely by moving their hands and arms.
Subscription Form 2012
Advertiser’s Index Aggreko Middle East Limited....45 AKSA Jenerator Sanayi A.S. ........44 AME Trade Ltd (Zimec 2012)......65 Astra Veicoli Industriali SpA- Iveco Group............................41 Campsite Solutions ......................34 Ciber Equipamentos Rodoviários Ltda. ............................57 De Shekinah Nigeria Ltd..............66 Doosan Infracore ............................53 Eaton Electrical (South Africa) Pty Ltd.....................72 Eko Hotel and Suites......................47 Emirates ..............................................25 EMS (Africa's Big Seven 2012) ..13 EMS (SAITEX 2012)..........................18 ERL Marketing International......29 ExxonMobil Corp.............................15 First Forever Co Ltd ........................69 First Tech Group ..............................63 Gedore Tools SA ..............................19 Greaves Cotton Limited ..............31 Guascor Group ................................43 IIR Exhibitions (Africa Electricity 2012) ................71 IIR Exhibitions (Power Niger 2012) ........................49
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African Review of Business and Technology - May 2012
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Over fans enjoy cutting-edge technology every game. All of it supported by electricity.
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ED screens measuring 6,000 net network twork ports, 600 TV monitors, 2 L LED 1 00m2 ea 100m ch, 1 ,200km of cabl ing, 1 50 wi-fi hotspots, 450 CCTV each, 1,200km cabling, 150 eeps tthe he act ion flo ng at tthe cameras. And what kkeeps action flowing win he most highwer supply tech stad stadium ium in Eastern Europe? Uninter Uninterruptible rupt u ible po power solutions from Eaton. solutions From po wer d istribution to po wer qual c to automat From power distribution power quality, ity, control automation, ion, stems, del ivering we we can manage m complete electrical po power werr sy systems, delivering solut ions wit h rel iability, efficiency, saf ety and sustainabil ity. solutions with reliability, safety sustainability. Whatever Whate verr is crit critical ical to yyou ou is crit critical ical to us: where w wherever ver tthere’s here’s electricityy, land, sea or air ou’ll find tthe eople, kno electricity, air,, yyou’ll people, knowledge, he pe wledge, understanding experience. xperience. Brought tog together understan nding and e gether in One Eaton. To out To find ou ut more visit www.eaton.eu/electrical www w..eaton.eu/elecctrical