AFRICA
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INSPIRED BY YOUR SUCCESS
EDITOR’S NOTE Heads of Departments Managing Editor Alice Instone-Brewer editor@littlegatepublishing.com Sales Director Alex Hilling-Smith alexsmith@littlegatepublishing.com Sales Manager Emlyn Freeman emlynfreeman@littlegatepublishing.com Head of Editorial Research Paul Bradley paulbradley@littlegatepublishing.com Project Manager Steven Weller steveweller@littlegatepublishing.com Editorial Researcher James Lapping james@littlegatepublishing.com Editorial Researcher Will Girling willgirling@littlegatepublishing.com Corporate Director Anthony Letchumaman anthonyl@littlegatepublishing.com Lead Designer Alina Sandu studio@littlegatepublishing.com Publisher Stephen Warman stevewarman@littlegatepublishing.com Any enquiries or subscriptions can be sent to info@littlegatepublishing.com ENDEAVOUR MAGAZINE is published by Littlegate Publishing LTD which is a Registered Company in the United Kingdom. Company Registration: 07657236 VAT registration number: 116 776007 343 City Road Suite 10, Thorpe House London 79 Thorpe Road EC1 V1LR Norwich, NR1 1UA Littlegate Publishing Ltd does not accept responsibility for omissions or errors. The points
S
ince we published our first magazine
number of mature, multi-party democracies
5-years ago, Endeavour Magazine
has led to the widespread implantation of
has had the privilege to follow the
initiatives aimed at halting corruption and
changing fortunes of the African business
improving transparency – the foundations,
world. Suffice to say, this has given us a
in other words, upon which a compelling
great vantage point from which to observe
case has been made to keen but formerly
this remarkable continent’s transformation
skittish foreign investors to open their
in recent years.
chequebooks.
Isn’t it wonderful that Africa is finally
What is there to say? Africa, with its
beginning to realise it’s almost limitless
increasingly
potential? The change has been a sight to
markets, is the future. It has finally
behold, as lights turn on across every corner
succeeded in shedding its reputation in
of the continent. While the global economy
the eyes of the international community
has spluttered through a decade which has
as a place synonymous with poverty and
been characterised by stagnant growth
conflict.
rates and stubbornly high unemployment, the African continent has undoubtedly been one of the world’s brightest economic hotspots. The business pages - ever a barometer of macroeconomic good health - have for the most part been running the same narrative for some time; namely one of expansion, exciting new start-ups, soaring economic
of view expressed in articles by attributing
growth and surging levels of foreign
writers and/or in advertisements included in this
investment. Stories of multi-million-dollar
magazine do not necessarily represent those of
airport, road and business hub expansion
the publisher. Any resemblance to real persons, living or dead is purely coincidental. Whilst
projects have become seemingly routine,
every effort is made to ensure the accuracy of
while colossal multi-billion infrastructure
the information contained within this magazine,
projects have long since ceased to be
no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or
prosperous
people
and
Of course, there is still work to do. Challenges and threats are never far away and will continue to emerge – particularly in light of the threat posed by populist revolts against free trade and globalisation in the developed world, and rising national debt levels closer to home. In order for the continent to maintain its upward trajectory, investment must continue. If this happens, job creation will continue, trade between nations will rise, and high growth rates will likely be maintained.
ALICE INSTONE-BREWER
extraordinary. Granted, this isn’t to say pockets of volatility don’t remain in some areas of the
by any means without the prior written consent of
continent, but for the most part stability has
the publisher.
been achieved. The increasingly effective
Copyright © Littlegate Publishing Ltd 2018
governance on offer from the growing
Endeavour Magazine | 3
CONTENTS
6 P.H. HEAT TREATMENT FEATURES
12 BANKING ASSOCIATION SOUTH AFRICA 4 | Endeavour Magazine
6 12 20 26 35 42 48
P.H. Heat Treatment The Metal Industry Is Heating Up Banking Association South Africa Bankable Results MM Intergrated Steel Mills Steeling The Show Kanu Equipment Hard Work Pays Off SPS - Sustainable Power Solutions Here Comes The Sun Chicken Xpress Trust The Flava Jindal Africa Digging Deeper
42 CHICKEN XPRESS
54 DLA Investments Granite Quarries Rock Solid 60 Konza Technopolis City A Smart Investment 68 TANESCO Lighting Up Your Life 74 Association of Citizen Contractors Tanzania Specialists In Safeguarding 80 Kanu Equipment Experience The Support 86 KETRACO Kenya’s Brightest Spark
60 KONZA TECHNOPOLIS CITY Endeavour Magazine | 5
P.H. HEAT TREATMENT WWW.PHHEAT.CO.ZA // 0027 11 822 2704
THE METAL INDUSTRY IS HEATING UP A company with serious heritage, P.H. Heat Treatment is a longstanding pillar of the South African commercial landscape. Having carved a niche as a heat treatment expert, Endeavour magazine was keen to speak with Cecil Zlotnick, one of the company’s Managing Directors, to find out how. WRITTEN BY AMY BUXTON
P.H. HEAT TREATMENT
Founded back in 1956, P.H. Heat Treatment (P.H.) is
enjoying the continued success and phenomenal reputation that only a company with a real legacy of excellence can.
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N
ow one of the oldest commercial metal heat treatment operations within South Africa, there’s nothing the team doesn’t know about both ferrous and non-ferrous treatments,
which has made for a terrific portfolio of services: “Processes offered by P.H. include gas carburising, carbonitriding and other case hardening processes, as well as neutral hardening and tempering, carbon restoration, normalising, etc. P.H. is also the only South African heat treatment organisation to offer certain copyrighted processes under licence to the U.K., such as Alpha, Alpha Plus, Beta, etc. which allow steels to withstand wear and corrosion.” This is impressive enough, but in order to really get a grasp on how P.H. has consistently superseded industry standards and requirements, we need to understand why these heat treatments
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are so vital. We asked Cecil Zlotnick, one of the joint Managing Directors of P.H., to elaborate and explain: “The company is involved in the heat treatment of metal components, particularly steel. It is a service industry providing an essential service to manufacturers of steel products and components. The purpose of the heat treatment is to enhance the mechanical properties of components such as hardness, strength, wear and corrosion resistance, depending on the requirements and the application.”
Furnace Engineering & Equipment Ltd. would like to congratulate P.H. Heat Treatments on their continued success story as a leading, high quality heat treater in South Africa. We have supported the company over many years, supplying heat treatment plant, spares parts and technical support, over which time we have developed a strong and personal relationship. Furnace Engineering wish P.H. Heat Treatments every success in the future.
TEL: 01299 - 404631
Atmosphere Furnace Service . Equipment Sales . Installation . Repairs . Spares Endeavour Magazine | 9
P.H. HEAT TREATMENT In layman’s terms, if a client needs to guarantee the strength of metal tools and/or structures, P.H. is a go-to operation that can
influences and industry fluctuations will always be something to be mindful of:
complete the task. Just imagine the commercial implications of
“Unfortunately, the current state of the industry is struggling
this: every industry from mining through to automotive and even
and shrinking due to the high operating costs, difficulty for our
specialist engineering firms would be able to benefit from working
customers to compete against Chinese and Indian imports and also
with P.H., especially when you consider the levels of precision
due to political interference and low commodity prices affecting the
being maintained by Cecil and his team,
mining industry. In our niche market of component heat treatment
“In 1981, I purchased the company along with a partner, both
there are very few competitors - probably only six or seven in the
having 50% share and becoming joint Managing Directors. I have
country. However, many of them have small, inferior quality and
always believed in instilling a culture of customer focus and striving
antiquated plants and processes. Our plant is the largest of its kind
for perfection in all aspects of the business.”
in South Africa.”
This ground-up style of management is becoming increasingly
Whereas lesser companies might allow such outside factors to
rare, but by keeping a finger on the pulse of the business and
take their toll on the amount of work coming in, P.H. merely views
remaining not only financially but also personally invested in the
them as extra challenges that, once overcome, will simply cement
on-going success of it, Cecil is able to ensure that his desire for
the good name and enviable industry position that the team revels
perfection is seen through to fruition. After all, you don’t get to
in. Cecil explained that rising above industry difficulties and always
become a recognised industry giant by cutting corners or relying
striving to be better is what makes P.H. so unique:
on a previously well-maintained reputation. Having chosen to
“Our company prides itself on superior technical and
only operate nationally, mainly in the Gauteng region, Cecil and
metallurgical knowhow and experience, and always uses the most
his business partner can maintain a far firmer grip on operations.
advanced methods, plants and controls to produce the best quality.
However, despite exemplar management techniques, external
We are the only company in our field with extensive knowhow
10 | Endeavour Magazine
in steels, metallurgy of heat treatment and gas/metal chemical
our capacity by approximately 40% over the last ten years. We are
reactions, as well as furnace technology knowhow. Our service to
continually looking to diversify further in the heat treatment field –
customers is fast, as we are able to react very quickly to customers’
however, the major obstacles to this are the high cost of capital due
demands.”
to our extremely weak Rand and the shrinking market.”
It’s not just a great attitude that Cecil can offer clients though,
He went on to explain; “Our main objective for the coming year
as there is a dedicated team of around 50 professionals fulfilling
is to expand our existing business by aggressive selling into the
the promises being made to existing and potential customers.
market, with emphasis on competing with our rivals. Secondly, we
With little scope for external training, P.H. takes ownership of
aim to improve efficiency by using our knowhow to cut costs to
making sure that every member of staff is given extensive in-
offset massive annual increases from our main suppliers. We are
house education and, for those that show particular aptitude, the
currently investigating the possibility of expanding into processes
potential for promotion is promising. This is great news, as P.H. is
such as austempering, vacuum heat treatment of tool steels and
resolutely not going anywhere.
nitriding of stainless steel.”
Having established excellent relationships with local banks for
With a plethora of expansion plans, a loyal customer base
continued funding, not to mention key suppliers, both locally and
and a sterling reputation already in place, P.H. is only going to get
internationally, P.H. has everything in place to enjoy countless more
stronger, and we look forward to reporting back on them in the
decades at the top of the industry. Let’s also not forget that there
future.
is a roster of longstanding clients as well, all of which, combined, make for a positive future. Cecil was keen to divulge what P.H. has in store: “Over the years, we have concentrated on our core business and expanding it as much as possible. To this end, we have increased
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+44 1460 270 300 Cronite Castings Limited Crewkerne www.safe-cronite.com Endeavour Magazine | 11
BANKING ASSOCIATION SOUTH AFRICA WWW.BANKING.ORG.ZA // 0027 11 645 6700
BANKABLE RESULTS Headed by Managing Director Cas Coovadia, the Banking Association South Africa seeks to maintain stability by embracing change. As the mandated representative of the banking sector, theirs are the shoulders upon which the country’s banking stands – an industry that, in turn, supports the country as a whole. Whilst a small group in terms of staff, the Banking Association South Africa’s reach and influence is vast, as is the responsibility of their role: Endeavour caught up with the association to take a closer look at how they handle their calling. WRITTEN BY ALICE INSTONE-BREWER
BANKING ASSOCIATION SOUTH AFRICA
The Banking Association South Africa (BASA) exists as a
go-between for South Africa’s government and its banks. However, in reality, there is also a third essential voice that they bring to the conversation: South Africa itself. Between politicians and stakeholders, one might expect BASA to advise these two power-groups without much thought to the impact on the South African people, but this couldn’t be further from the truth.
It’s more than just business to you.
W
ith a focus on accessibility, inclusiveness and change, MD Cas Coovadia has taken BASA against the grain of what we expect from the banking world. The result? Amazingly,
more stable business for their members. That’s right – it seems that good banking pays. In its own words, BASA is “an industry body that aims to build a positive banking environment for consumers and banks. It addresses industry issues through advocacy; guiding transformation in the sector; acting as a catalyst for constructive and sustainable change;
That’s why we help.
and engaging with critical stakeholders.” It works closely with its
As a bank built by entrepreneurs, we understand that it’s more than just business to you. It’s more than just banking to us. That’s why we help.
government to make them aware of the bank’s needs. It also stays
members to advise on issues facing the sector, and to lobby the aware of how banking can impact the country in a positive way, as Cas elaborated: “BASA manages various committees that advise our executive on issues pertinent to the sector. For instance, we have affordable housing, agriculture, SMME, debtor financing and
For all your Business Banking related queries Contact Stephen Swart on 079 504 4125 or 24/7 Business Desk on 087 575 9479 or newbus@fnb.co.za
property finance committees among many more.” BASA is aware of the demands on its position and holds itself to the highest standards in order to meet them. This includes monitoring the quality of its staff, the efficiency of its communication systems and the way in which BASA represents itself and its members to South Africa as a whole. As it states on its website: “We are an organisation that exists to contribute to the enablement of a conducive banking environment. Part of this responsibility is to ensure that we participate at the highest-
a division of FirstRand Bank Limited. An authorised Financial Services and Credit Provider (NCRCP20).
14 | Endeavour Magazine
level of decision making in the country. To this end, The Banking
Association South Africa has structured and organised itself to ensure effective participation in cabinet and its executive through the calibre of people and leadership that interact with Government at various levels.” When it was initially established in 1992, BASA was a different animal. In fact, it was four animals: The Association of Mortgage Lenders, The Merchant Bankers Association, The Clearing Bankers Association and The Association of General Banks. These four separate associations worked cooperatively under the name ‘the Council of South African Banks’ (COSAB), but they did not become one official entity until 1998. When merged, the new association was named The Banking Council South Africa, until 2005 brought a complete re-structuring, re-naming and new leadership. That new MD was Cas Coovadia, and the entity was the beginning of BASA as it stands today.
WHEREVER YOU ASPIRE TO MAKE PROGRESS, THAT’S WHERE WE FEEL MOST AT HOME.
With a pressing need for professionalism, BASA needed quality in every member of staff, and a clear head at the helm. Coovadia was a natural choice – having previously worked closely with his
predecessor, he was able to bring a fresh approach to leadership whilst building organically from the foundation of BASA’s past. He
seized the opportunity to re-invent how the association worked: as a sector, banking has a reputation for being resistant to change,
WHEREVER WHEREVER WHEREVER YOU YOU YOU ASPIRE ASPIRE ASPIRE TOTO MAKE TO MAKE MAKE PROGRESS, PROGRESS, PROGRESS, THAT’S THAT’S THAT’S WHERE WHERE WHERE WE WE WE FEEL FEEL FEEL MOST MOST MOST ATAT HOME. AT HOME. HOME.
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Endeavour Magazine | 15
BANKING ASSOCIATION SOUTH AFRICA but in order to keep up with South Africa’s evolving needs and best
within state-owned enterprises. We look forward to working with
support its members in responding to them, the new MD ruled that
government in helping to shape an exciting period of clear, growth-
stagnancy and complacency were not an option. Going further still,
friendly policies that boosts confidence in South Africa even further
he made sure that BASA’s focus was not simply on its members, but
and helps drive development in the interests of all South Africans,
on their customers, helping one by protecting the other:
particularly the poorest of the poor. We see inclusive growth as
“We work with government and other stakeholders to ensure
the key to overcoming poverty, inequality and unemployment and
inclusion in banking, so that as many people as possible in our
we see a new political environment taking shape where that can
country have access to some form of banking service.”
accelerate.”
It seems a simple aim, but it is one that banks can, in honesty,
Globally, banking hit a crisis in 2008 and 2009. However, thanks
overlook, but Coovadia is on a mission to prove that fair and
in part to the support and advice of the association, a proactive
successful banking can work hand in hand. He was no stranger to
and efficient regulator and relatively conservative banking practice,
working towards change before his position as MD, either; “I have
South Africa’s banks faired surprisingly well: “SA boasts the second
a lifelong commitment to civic issues, including as an activist within
most sound banking sector in the world. Our banks are well
the United Democratic Front during the anti-apartheid struggle
capitalised and amongst the best in the world. This is borne out by
and as a founder member of the SA National Civics Organisation.”
the fact that our banks weathered the 2008/9 financial crisis and
It is an attitude that has seen him through 12 successful years as
not a single bank experienced any liquidity or capital problems.”
BASA’s MD, and they have been successful for South Africa, too.
This statement in itself suggests a link between inclusive
“With banks being so closely integrated into the economy, the
banking and stability. Whatever the cause, it’s inarguably an
interests of our members are aligned to the economic fortunes of the
impressive boast! “The South African banking sector, despite
country,” Cas explains. “Following recent political developments, we
being a concentrated sector, is still competitive and continues
are extremely positive about policy indications and appointments
to diversify its products and broaden its services according to
VBS Mutual Bank is a true South African success story. Founded in 1982 in rural South Africa as a building society the bank continues to deliver value to it’s stakeholders with tailored and innovative products. The bank is focussed on providing it’s clients with access to banking products to which it did not have access to in the past. We have 99.93% black ownership and are a BEE level 1 company. We aim to be South Africa’s leading provider of innovative banking solutions to our chosen SME and Retail markets. In additional to services to our retail clients we provide innovative working capital funding solutions to both SME’s and specialized entrepreneurs focused on: • Fuel and commodity financing • Contract Financing and Guarantees • Black Industrialists Funding We are Regulated by the South African Reserve Bank. We are a registered credit provider with the National Credit Regulator and an authorised services provider regulated by the Financial Services Board.
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16 | Endeavour Magazine
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10008971 Sasfin - Edeavour Mag 138X92_2.indd 1
beyond a bank
2018/02/07 11:47 AM
Endeavour Magazine | 17
BANKING ASSOCIATION SOUTH AFRICA international best practice. Currently the South African banking
their staff learning and promotion opportunities is essential to
sector is comprised of 17 registered banks, two mutual banks, 14
the MD; to encourage an attitude of offering inclusiveness and
local branches of foreign banks, two co-operative banks and 43
opportunity to the bankers of South Africa, he must offer the
foreign banks with approved local representative offices.” This isn’t
same to his staff. “BASA strives to be a caring organisation. We
to say that economics in South Africa are problem free. Like most
encourage staff development and, as far as our budget permits, we
of the world, the truth is far from it, and this is bound to have an
contribute towards training and studies of staff, provided this is of
impact on banks, however stable: “The current economic issues
relevance to the position. Staff get a maximum of 10 days’ study
we have in South Africa don’t provide a conducive environment
leave per annum for graduate qualifications and 13 days for post-
for banks, because the volumes of bank business are limited by the
graduate qualifications. “
pedestrian economic growth and lack of investment, which in turn
Coovadia is no fool – by valuing the idea of brand and corporate
is constrained by a poor environment for investment. However,
vision, mingled with a personal and genuine investment in his
even in this difficult environment, our banks remain sound, stable
staff, he has created an entity where employees can be proud to
and solid, and ensure the safety of depositor funds.”
work, and will pass that positivity and zeal on to their members.
Instigating change in an industry must happen on many fronts
When asked his philosophy regarding leadership, he responded
– as well as influencing his 35 - member banks and lobbying the
with “Humility, morality, ethics and servant leadership” - it isn’t a
government, Coovadia needed to create change at home. He knew
common answer, but it one that has served him and South Africa
that to keep ideas fresh, he could not ignore the potential of young
well. As always, he has a slate of plans moving forwards to improve
employees: “Always try to encourage young talent and develop
awareness and communication between the groups BASA interact
it. We take in interns every year and expose young people to the
with, and with every step, to continue the mission he began 12
industry. We also try to promote from within wherever possible,
years ago. It’s a breath of fresh air to see, and an attitude that we
bearing in mind that we have a relatively flat structure.” Offering
hope will catch on!
19280
WHEN YOU LOOK AT THE WORLD DIFFERENTLY, YOU CAN DRIVE PROGRESS.
Nedbank Corporate and Investment Banking is a division of Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).
18 | Endeavour Magazine
19280 NB CIB Endeavour Mag 138X188.indd 1
2018/01/19 2:07 PM
MM INTERGRATED STEEL MILLS WWW.MOTISUNGROUP.COM // 00255 22 2139158
STEELING THE SHOW In a year that began with immense challenges for the African steel industry, MM Integrated Steel Uganda remains one of the fastest expanding manufacturers of cold rolling sheets, galvanized roofing sheets and structural steel products in the country, as well as being one of the overall market leaders. With a production capacity of approximately 50,000 tons per year, a strong multinational presence and new ‘Aluzinc’ coating capabilities developing, it looks like whatever gauntlet the industry might throw MM in 2018 will be met with similarly resounding success - but how has the company reached these distinguished heights? WRITTEN BY WILL GIRLING
MM INTERGRATED STEEL MILLS
With its origins dating to approximately 18th BC in what
is now modern-day Turkey, steel has been a mainstay of civilisation for practically all recorded history. Forged by smelting mined iron ore in blast furnaces - thus removing its impurities – and adding carbon to form an alloy, the result is a high-tensile metal that is stronger, lighter and less prone to corrosion than its base iron.
F
rom this basic recipe, many historical variants have been
which possessed a notable industrial heritage that began to wane
developed: Wootz steel, Crucible steel, and Damascus steel
in the late 20th Century, an economic upswing has struck the
– the latter of which we still cannot produce using modern
region since the 2000’s. With $600 million invested over a period
techniques. Just as diverse are the myriad applications that steel
of five years from 2013, MM Steel Uganda certainly appears to be
has been utilized for: construction, transportation, agriculture,
at the epicentre of that change.
weaponry, tools and machinery, to name just a few. Now, in the
The impact of the Ugandan mill can’t just be measured through
post-industrial era, steel remains an important, low-cost material
finances, however; it provides employment for over 1,800 people,
that is in high demand for consumers all around the world; it would
all sourced from local areas and trained to stand amongst the best
seem that steel has been our loyal companion for millennia, is a
in the field. With inevitable expansion for the MM Steel brand,
relationship that will continue to evolve and flourish with us.
Jinja looks set for making a remarkable come-back to Africa’s
Stepping into this rich tradition is MM Integrated Steel Mills
manufacturing spotlight. To generate its output, the Ugandan
Ltd, a subsidiary of the Motisun Group. The first MM steel mill in
factory is a colossal operation: it consumes up to five megawatts
Tanzania was established by Motisun in 1995, with a production
of electricity at a rate of Shs210 million per month, which must be
capacity of 35,000 tons per year. The seed that was planted in
supplied by a direct link to the national grid. For water, at the time
Tanzania didn’t take long to go forth and multiply; at the time of
of the mill’s opening, its three-kilometre line to the National Water
writing, there are now four MM steel mills in Tanzania, Zambia,
and Sewerage Corporation was non-existent, so MMI connected it
Uganda and Mozambique, the newest of which opened in 2014.
themselves. Upon touring the Ugandan mill, Amerlia Kyambade –
With this growth, the company estimates an aggregate production
Minister for Trade – congratulated the management staff for their
capacity of 350,000 tons per annum and is proud to now be
much-needed efforts and “contribution towards the economic
considered “a respected brand [that] is the preferred choice within
development of our country”, pledging that her department would
the building and construction industry”. Upon opening in 2013,
push through further legislation to “help local industries grow”.
MM Integrated Steel Uganda represented the first of its kind in
The services provided by the factory include cold rolling mills,
the country: a steel manufacturer that could produce all its own
galvanising lines, colour coating lines and tube mills, a portfolio of
materials, as opposed to relying on imports. Based in Jinja, a town
capabilities that is certain to lengthen across their four established
22 | Endeavour Magazine
MM INTERGRATED STEEL MILLS mills going forward. ‘Cold rolling’ is a method by which a metal sheet
is where innovation and new industry technology play their parts,
– in this case steel – is passed through a set of rollers at room-
and MM Steel have shown no hesitation in keeping their company
temperature, wherein it is squeezed and compressed, with the level
fully on-trend. Among the newest developments has been the
of strain determining the end product’s properties and hardness.
introduction of ‘Aluzinc’ coating capabilities at the Tanzania mill.
Allowing for greater dimensional accuracy in the manufacturing
Consisting of cold-rolled steel that is subsequently galvanised with
process, and thus also increasing its resistance to surface damage,
coating consisting of aluminium (58%), zinc (43.4%) and a dash
cold-rolling has the added benefit of increasing the strength of
of silicon (1.6%), Aluzinc provides a far greater defence against
steel up to 20%. In terms of manufacturing, it doesn’t stop there:
corrosion than traditional galvanisation methods. Amazingly, this
the aforementioned tube mill uses state-of-the-art machinery that
superior protection doesn’t compromise on the steel’s acceptance
rounds steel sheets into high-quality tubes. Once the metal has
of paint coatings & finishes, weld acceptance or forming ability.
been forged and shaped, the factory can offer additional services
This results in a product that has a broad variety of domestic and
for the new product, such as ‘galvanising’, wherein a protective
industrial purposes wherever damp atmospheric conditions are
coating of zinc is added to the steel for further protection from
the enemy. With these capabilities almost certain to spread to
corrosion. In addition to this facility, MM Steel is also able to apply
the other three factories, and further innovations such as ‘duplex
a range of cosmetic (as well as protective) coatings to their metal
steel’ gaining traction worldwide, it is safe to say that MM Steel’s
as per the desired specification. Sold in both domestic and export
development will closely parallel the steel industry’s.
markets under the brand-name ‘KIBOKO’ for a competitive price,
Although 2017 was beset by great challenges for the steel
MM Steel’s products maintain an international standard, which in
industry in Africa - most notably in terms of expansion and export
turn maintains the company’s standing as a market leader.
growth - as the months progressed it became easier to feel
However, with the brand swiftly developing into a notable multi-
optimistic. With positive gains in supply and demand steadily rising
national presence, MM Steel need to maintain their reputation. This
across the board, MM Steel Uganda’s attitude of choosing to invest
24 | Endeavour Magazine
in the future is both commendable and wise. The company should serve as an example to others that; when the going gets tough, you must not only maintain your standards but try to surpass them. In today’s market, it is no longer good enough to simply have industry-leading products and an established name; consumers want to see a clear vision and a strong ethical message - something the Motisun Group are very conscientious of. “MMI Steel,” the company says, “is dedicated to conducting business in a professional and ethical manner.” They are achieving this not only by providing a superior product at a fair price, but also through ecological measures such as improving and expanding their acid regeneration plant capacities. With sights set to firmly on establishing a better tomorrow, not just for Uganda but the entire industry, MM Integrated Steel Mills Ltd is sure to continue developing into a company that is as diverse as steel itself.
Kubach & Sambrook (Metals) Ltd
0208 951 6500, +44 208 951 6500 info@kubach.co.uk
It has been a pleasure and source of satisfaction to have a customer like MMI
Endeavour Magazine | 25
KANU EQUIPMENT WWW.KANUEQUIPMENT.COM // 0027 11 923 7000
HARD WORK PAYS OFF When a business rents, leases or purchases equipment, it is really trying to solve a problem with that equipment. Equipment downtime due to mechanical breakdowns result in additional cost to operations and frustration on the work site. WRITTEN BY ALICE INSTONE-BREWER
KANU EQUIPMENT
Support is the catalyst of service operation and
discipline and this is what places Kanu Equipment in a league of it`s own. In equipment rental, effective service and maintenance of machinery guarantees a satisfied customer experience yet in Africa it has been sorely missed within the industry. Masterfully, Kanu Equipment has filled this gap securing their path to success. Kanu is all about optimally functioning equipment…. all of the time. We caught up with company founder and CEO Stephen Smithyman, to find out about Kanu’s latest developments, and what is continually placing this company ahead of the opposition.
F
or a young company, Kanu Equipment already has an impressive
that the equipment is working optimally and downtime is kept to
reputation. In essence, Kanu Equipment realised that the key
a minimum.
differentiator between them and the opposition was service
“Our mission is to reduce our customers’ cost of doing
excellence. Through this devotion to service, the five-year-old
business. In part, that’s through the support we provide. Our slogan
company quickly carved out a space for itself in the equipment
is ‘Experience the Support”, as we differentiate ourselves by being a
rental field for Africa’s key heavy industries, including agriculture,
support organization to our customers in the hard areas where they
forestry, mining, earthmoving, construction and road construction.
do business”, states Stephen Smithyman.
When working in some of Africa’s more remote locations, this
The ability to have access to spare parts on site can mean the
support can literally be operation-saving, and the loyalty this has
difference between a minor hiccup and a costly delay. This is true
won Kanu, speaks for itself.
anywhere, but particularly in some of the more remote and far-
Kanu understands that good customer experience leads
reaching locations where Kanu’s African clients do business. “We
to brand loyalty. This brand association is ultimately what
have a very strong mutually beneficial relationship with all our
manufacturers are after. Excelling at customer service leads to
OEMs and have maintained this relationship because we provide
manufacturer preference for agents that are able to provide the
good service on the ground. Previously, African customers would
ultimate level of support, to sell and distribute their brands. Kanu
accept the fact that in these countries, they needed to provide their
Equipment has forged strong working relationships with several
own support.” Many African markets still operate with this model
large equipment manufacturers: Bell, Liebherr and Wirtgen, who
focused on selling rather than on customer service. Once the
focus mainly on the construction and mining industries, and Case
equipment is sold the problem becomes the customers’. “What has
Agriculture, providers of top-of-the-range farming and forestry
fundamentally changed now is that the world has become a smaller
equipment. Kanu’s entrenched relationships afford them the ability
place and customers require first-world support. Companies need
to keep world-class equipment available for their customers, as
to adapt to that or they will lose relevancy.”
well as a generous supply of related spare parts.
The company started out in Congo, followed by rapid expansion
This allows them to provide a maintenance support service of
into West Africa, Botswana and now East Africa. “We basically
their own, and consignment stock on the ground in order to ensure
started out in the hardest countries and then worked our way
28 | Endeavour Magazine
KANU EQUIPMENT around.” The idea for the company came to Smithyman when he
challenges eventually emerging wiser and more resilient. It is the
encountered his own difficulties in hiring equipment for a mining
story of how ‘hard work pays off’ and it is the ethos that is felt
exploration project. “We were trying to find a bulldozer to rent. We
throughout the company from their operational decisions and
couldn’t find one, and then when we eventually did, the rental rate
expansion plans right down to the daily choices of their employees.
was really high.”
Kanu’s dedication has pushed them to heroic acts of service:
“What inspired me to start the company initially was that I
whilst expanding its operations, Kanu moved into several areas that
saw there was a real lack of support for people who are running
were in the throes of dealing with the Ebola virus crisis. Instead of
machines in some of the markets. I was optimistic about the
leaving their customers unsupported, they stayed firm. Truly going
business opportunity – I knew that if we could provide exceptional
above and beyond the call of duty, Kanu proved that it values its
support and service to our customers, we would succeed. What
customers as family and that its promise to provide support will
inspires me now is that we employ over 570 members of staff across
hold true no matter how challenging the conditions. “We have
14 countries, who very often work in adverse circumstances. These
shown our customers that we were prepared to support them even
are the people that drive me to continue to grow this business so
in the middle of a crisis. Many of our staff put their lives at risk to
that their lives and that of their families can be improved. They keep
provide that support.”
equipment humming under trying conditions to make a difference
Despite stormy waters, Kanu’s loyalty to their customers has
to our customers and this, I believe, will grow mechanisation
led to their success in every market they move into. “Some markets
in Africa.”
are very new to us, whilst other markets like Botswana have more
Smithyman’s praise of his employees is well-deserved. The
established customers. We’ve been very successful in a variety of
Kanu name is inspired and derived from an old African tale ‘Kanthu
countries all for different reasons but with one common focus, that
N’khama’, a story about a small but brave and resourceful bird
we represent quality brands and we provide exceptional customer
that flies into a dark and formidable forest, where it overcomes
service”. As well as spreading their on-the-ground support
30 | Endeavour Magazine
throughout Africa, the company also has a physical presence in Europe, to reach the decision makers of larger industrial groups. Many companies that operate in Africa have decision-makers based in Europe, so our sales-arm in Switzerland meets with these key customers who wish to work in areas where we don’t currently have an active presence.” This face-to-face contact is important, and Kanu is constantly branching out to increase this physical in-market presence even further. Kanu continues with expansion into Africa. “In Tanzania, we’ll be very successful – we have a very strong customer support base there. Kenya is also a very exciting market for us, because there is a lot of machine demand every year, so we’re hoping to gain market share there.” Another exciting expansion plan is currently Namibia. “We are now the largest independent Liebherr Mining dealer in Africa as we represent Liebherr Mining in Namibia and Botswana. We’ve got a number of customers currently operating Liebherr Mining machines in Namibia. We believe there’s a lot of strong growth potential for mining in this region, especially now that mineral resource prices have increased. These customers have not been supported as well as they should have been in terms of stock, spares or on-the-
Endeavour Magazine | 31
KANU EQUIPMENT ground service. We are going to introduce a level of sophistication
set up to finance local entrepreneurs. We will buy a container and
around our IT system, and the support we can offer. We will also
give them training and IT support, allowing them to open up their
store a wide range of spares. We believe it will be a win-win for us
own spare parts business in areas where heavy equipment is used.
and the market. Everybody’s really excited about the launch.”
We’ll give all the technical backing, knowledge and spares to them,
Of course, not even Kanu can expand indefinitely. “Next year
and they will operate like a distribution centre for us. Through
will be a year of consolidation. The year thereafter, we will look
Project Hummingbird, we believe we could create about 1000
at expanding further, but only if we get the support we need to
entrepreneurs throughout the continent.”
ensure top-class customer service. Largely we would look at going
“Training is a very important part of our service offering. It’s
further into Africa – it is where we are mostly based, and where our
arguably one of the key drivers of our expanding business. Making
customers want us to be. Over the next few years, we aim to be in
sure that local staff are trained well means we have an opportunity
18 different countries, and then we’ll look at listing the business
to grow.” This development project not only contributes to Kanu’s
on the stock exchange. We want to double revenue every year –
operations and the increasing number of customers their support
that’s our plan.”
services can reach, but also creates jobs and serves as a boost
It’s an ambitious plan, but given the loyalty Kanu enjoys from
to local economies. They are running feasibility studies on the
their markets and suppliers, it’s a goal that is well within their
proposition, and are hoping to receive government backing to
grasp. True to their mantra, however, their own growth isn’t the
supplement their own contributions. If successful, the project will
only one that interests Kanu. Project Hummingbird, taking its name
be a fantastic boon to Kanu, but it will also be a life-changing one
from Kanu’s inspired logo, is a proposed initiative that will allow
to the entrepreneurs empowered by the programme. Once again,
Kanu Equipment to empower and establish a network of small and
this dynamic organization will not only achieve success for itself,
medium sized entrepreneurs that will serve as independent spare
but will ease and enable the industries and business around it, truly
parts suppliers for their products. “Project Hummingbird has been
allowing Africa to ‘Experience the Support’ like never before.
32 | Endeavour Magazine
SPS - SUSTAINABLE POWER SOLUTIONS WWW.POWERSOLUTIONS.CO.ZA // 27 21 851 6308
HERE COMES THE SUN Through government legislation and private investment, nations around the globe have been making a choice – whether they will be frontrunners in renewable energy, or whether they will stick to the familiar past. WRITTEN BY ALICE INSTONE-BREWER
SPS - SUSTAINABLE POWER SOLUTIONS
When we talk about green and renewable energy, certain
parts of the world spring to mind, particularly Europe and China. However, as technology develops, and renewable solutions become more practically and financially feasible, the possibilities they open are making a difference everywhere. We spoke with Axel Scholle, Managing Director of Sustainable Power Solutions Ltd (SPS), on the changes this spreading technology can and is making for the African continent.
“G
eneration for generations”: SPS’s company slogan encompasses the concept of sustainable energy. It shows a focus not only on current profits or benefits for
their stakeholders, but a focus on providing solutions that have guaranteed profits and benefits for the future. For Axel Scholle, company Managing Director, sustainability is an issue close to his heart: “I was inspired to start my career in the renewable energy industry because I can actively make a positive difference to sustainable living. We want to ensure that our projects are a sustainable solution for our clients and the environment. The sun is a renewable energy source that gives us an opportunity to positively utilize with no environmental harm as opposed to nonrenewable sources such as fossil fuels which are currently being capitalized on.” Axel is the Founder and Managing Director for SPS since it
MAXIMUM EFFICIENCY IS POSSIBLE. NOW THAT WE ARE FORGING NEW PATHS WITH THE COMPACT FRONIUS ECO PROJECT INVERTER.
began pioneering solar PV solutions in 2010, for grid connected
/ Interested? Visit www.innomatic-solar.co.za
“We design, construct and commission the system, and we’re
solar technologies. Today, SPS cover multiple angles in the solar energy field and a have strong partnership with a company providing flexible funding; SPS is an EPC (Engineering Design, Procurement & Construction) and O&M (Operations & Maintenance) company, providing both on and off grid solar solutions to clients that include the industrial, commercial, agriculture, mining and tourism sectors. typically involved in the maintenance and operation of the plant - which is a key element for ensuring a healthy ROI for clients. We like to view our clients as partners and enable them through
36 | Endeavour Magazine
SPS - SUSTAINABLE POWER SOLUTIONS training of their local operators, while we conduct the monitoring
by battery storage. That was obviously a significant change for
activities at our Head Office in Cape Town.
that lodge, not only in the use of fossil fuels, but also their carbon
In addition to their on-grid and off-grid technology services,
footprint reduction, energy savings and reduced noise pollution for
they also provide hybrid and energy storage options, allowing
the lodge and surrounds. The lodge consume between 1,400 to
them to tailor their renewable energy services to best meet the
1,700 units of energy a day, and the solar generates about 75%
practical needs of their clients’ varying situations. With offices
of that energy. This obviously leads to a significant reduction in
in South Africa, Kenya and Namibia, and customers spanning
generator running time.
sub-Saharan Africa and the surrounding African islands, these
SPS’s current pipeline has plenty more work lined up in in the
varying conditions often include geographical challenges such as
sub-Saharan region. By second quarter 2018, they expect to have
reaching remote locations, climate conditions, economic changes
constructed an additional 5MWp and 2.5 MWh in projects. Working
or sometimes, navigating political or regulatory complications. To
in this region, and in particular, in hard-to-reach towns, villages and
date, SPS have successfully completed multiple projects across
tourism locations, is a rewarding experience for Scholle, and a large
South Africa, Namibia, Kenya and Saint Helena Island, constructing
part of why he founded SPS. “Back when I was still in Namibia, it
over 20MWp of solar projects and 1MWh of battery storage. Out
was satisfying to install solar at communities, there would be no
of these, one of their most interesting projects using cutting-edge
lights when you arrived and there was light when you left. That
solar technologies was the installation of Kenya’s largest solar
significant change was always very fulfilling for me.
tracker, off-grid and battery storage system, commissioned in June this year.
However, as life-changing and economic as renewable energy can be, it is still facing challenges, critics and resistance around the
“The project was implemented at a tourism location – on one
world, and Africa is no exception. “It’s an ongoing debate. I’m always
of the largest National Parks in Kenya. The client was completely
baffled about how the information around nuclear energy can be so
relying on diesel generators for 14 hours a day, so we designed
different, seeing that it is a scientific subject. It’s the same with
an off-grid system that operates largely off solar, which is backed
renewables.” We asked Scholle what he felt companies’ resistance
38 | Endeavour Magazine
SPS - SUSTAINABLE POWER SOLUTIONS to renewable energy stemmed from: “It’s a regime change, in the
“The other site is a commercial battery storage system, so
sense that if you move from centralized to de-centralized, there’s a
it’s a more commercial scale operation. We used this site to test
lot less control. I think the utility sector is used to centralized large
technologies that we have now deployed into our off-grid solutions
scale power generation plant, so a decentralized renewable energy
in East Africa and the Indian ocean territories. To do this, we took
doesn’t fit very well into that model.”
the smallest iteration of that technology and used it here.”
This resistance is particularly an issue when it comes to grid-
This push in East Africa and into the Indian ocean islands is
connected solutions. Off-grid technology relies on the development
the focus of the next two years for SPS. “There are markets there
of off-grid technologies and energy storage for efficiency and
that are just becoming ready and mature now. Our aim over the
lowering costs, but on-grid also relies on cooperation from utility
next two years is to establish a solid presence in those countries
companies. This can vary from country to country, depending
where we clearly see a need for these technologies.”. Focusing on
on regulations and laws, political attitude, and the nature of the
bringing sustainable power solutions to the areas that need it most,
national utility sectors. “The regulatory issue of whether we can
SPS’s long-term dream is to drive quality off-grid energy storage
connect to a grid – that is still something that is largely a grey area
solutions, along with on-grid storage for utility services across sub-
in Africa, and there are areas where we may see a regulatory change
Saharan Africa. “The sun’s the biggest resource that we have and
coming through with additional requirements. That gives a rickety
it’s a no brainer that it’s become an increasingly important part in
feeling and some uncertainly for investors, when the regulatory
the energy mix of countries.” It’s a dream that could mean great
environment is not clear.”
things both for the future of Africa, and our planet as a whole – it’s
“The political climate of Africa is a bit shaky. You see what’s happening in Zimbabwe, and in Kenya we’re having election uncertainty. That will all have an impact on investment, and renewable energy is an upfront investment technology. The operational cost of it is very low, but someone still has to make that upfront investment.” However, for solar energy to continue growing and benefitting people in a range of situations, Scholle feels that both avenues are necessary. “Renewable energy really benefited when it started to be used in grid connected configuration. It increased the scale of renewable energy much more than we ever did in the off-grid sector 20 years back. When the grid-connected program started in the ‘90s, it catapulted commercialization of the solar industry which lead to significant price decreases over the last two decades. Solar has become unstoppable; the numbers just make sense. “In the storage development, we would expect a price reduction over the next 10 years, and this will allow us to reach communities, in particular, those in Africa, that we could not reach with grid electricity simply because it was too costly. This will open the gate to drive access to energy even further than to what has been achieved in the last 10 years. Striving for the best is not just an attitude or mantra – it needs to be put into practice through practical means. In a field where technology is constantly developing, SPS ensure they use manufacturers and methods that lead to the best results. Testament to their progressive nature, SPS has invested in two testing facilities at their Lourensford Wine Estate offices. “One is basically a solar module test site, where we installed a small range of different module types that we either have used in projects, or have bought directly to do a longer-term performance test between different manufacturers and technologies. It’s a long-term site - it’s generating some electricity for the wine farm where it is based, and together with the research institutes, we can analyse the data and see how these different technologies compare .” 40 | Endeavour Magazine
a comfort to know that a company like SPS is working tirelessly to see it happen.
CHICKEN XPRESS WWW.CHICKENXPRESS.CO.ZA // 0027 31 569 190
TRUST THE FLAVA Chicken Xpress are a South African company with a South African taste. In fact, this patriotic “Flava” is central to everything they are, from their fresh take on chicken to the energy of their staff and the colourful design of their quick service restaurants. Since we last spoke with Chicken Xpress, they have been preparing to tell us about their journey through the most exciting time in a company’s life – a total rebranding, just in time for their wide-scale expansion, both at home and abroad. WRITTEN BY ALICE INSTONE-BREWER
CHICKEN XPRESS
Chicken Xpress (CX) opened their first store in 2011, in
Umlazi, KwaZulu-Natal. A well-loved local fast food brand, they bring a distinctly South African feel to what they do, and they do it well. In the company’s own words: “Chicken Xpress is on an inspired mission to become the people’s champion in each new community we enter.”
Their love and enthusiasm for their work has been rewarded with ever-growing success, which in turn has led to an exciting
Large Format Brand stores, kiosks, and food trucks to deliver their food out to the people.
period of change. Not only have CX been expanding their store
With the consistent and speedy growth of the Chicken Xpress
numbers at an incredible rate, but they have also been redesigning
franchise, the company may be focusing on thinking globally, but
their branding, developing their plans for charitable works, throwing
they are still acting locally. As a proud South African company that
opening parties and events across Africa and India, and have even
puts patriotism high on their agender, from the sourcing of local
had a change of COO.
employment to the use of only “proudly South African” products,
From owning 23 stores across South Africa, as well as
Chicken Xpress are working to reflect and contribute to their
locations in Botswana, the chain has recently undergone a massive
communities through everything from charitable works to their
expansion into India. Given that they began life in KwaZulu-
interior design.
Natal, the coastal South African province home to Indian-inspired
In particular, CX are representing this South African pride
Durban, the brand’s overseas expansion to this country is a logical
through their new branding. “We have evolved our branding to
one. Remarkably, however, their push into India will far outweigh
something more fun and exciting, just like the African culture,”
their current numbers in Africa, with an initial roll out of 120 stores,
enthuses Biton. “We introduced colors and patterns that bring out
and a view to growing this up to 400 stores over the next five to
the unique Flava in our brand, and that have a modern, African feel
ten years. We spoke with Delon Biton, CX’s Marketing Manager,
to them.”
about their plans: “We are currently finalizing a full market growth
“When we say, “Trust the Flava”, we are not only talking about
strategy for India, Bangladesh and Nepal. This will be our first entry
the unique Chicken Xpress South African taste, but also the Flava
into Asia, where we see CX growing across the entire continent as
within you that makes you stand out from the rest. Be confident in
it is currently doing across Africa.”
your Flava - Trust the Flava.”
India isn’t the only place seeing exciting change for Chicken
“We also focus on the Flava within the community that a store is
Xpress, with their new stores both abroad and at home the front
situated in. We are focusing more on individualizing and localizing
line for the company’s innovations. One such innovation has been
our stores; for example, through interior design, certain parts of
the introduction of 24-hour Drive-Thrus, which were opened to
our stores will abstractly tell a story about the area they are in. We
the public at the end of March this year, thus making the brand
are also adapting our stores to reflect our local customers’ taste
accessible to all potential customers. The Drive-Thrus join CX’s
preferences. For example, some of our stores have a hotter “SHISA”
family of service formats, including their traditional QSR stores,
Flava than others, due to the area’s customer preferences. We also
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CHICKEN XPRESS offer our franchisees unique local store specials and marketing
their businesses over time. “We believe that franchising provides
advice to suit the area that they are in.”
a structured and sustainable platform for entrepreneurs to grow
Well aware that first impressions are everything, Chicken Xpress have been pouring the majority of their attention into their
and enhance their business skills, while providing job creation and economic growth.”
new stores, from their smooth set-up, to their unique local designs,
This will be CX’s first store in Uganda, and from here, they
to throwing spectacular, crowd-drawing openings to welcome the
look to not only grow throughout Uganda, but also across the East
location into the community. The festivities usually involve live DJs,
African region. “While other western, off-continent brands have
‘Spin ‘n Wins’ giving away deals and prizes, and specials offers that
come into the region, our brand is one that is truly built for Africa.
allow everyone attending the opportunity to enjoy their menus.
We combine smaller format stores, with a localised approach to our
“We have focused a lot in our store openings - to make the biggest and best first impression and to maintain that standard
menu offerings, branding and community development across the continent.”
throughout. We show the customers our Flava - we have the Flava
The vibrancy of CX’s store openings reflects the attitude
and we are the Flava. We make sure everyone around our store is
and energy that has seen Chicken Xpress win the hearts of their
having a good time, from adults to young kids. We make the area
customers and cement themselves as one of the nation’s most
around us buzz.”
loved QSR brands. They have also achieved this through their
It sounds like a party! One of these many planned openings
community outreach: as well as promoting growth through
will be Chicken Xpress’ first store in Kampala, Uganda, in February
employment and the sourcing of local ingredients, CX supports
2018. The site will be situated next to a busy Shell Petrol Station, in
young sportspeople throughout the country via the sponsorship of
one of the busiest parts of the city, and used as an entry point into
soccer kits and other items for schools and clubs. On top of this,
the Ugandan market. Uganda was recently voted one of the most
they are also involved in community initiatives such as charitable
entrepreneurial countries in the world, but it is still an emerging
work with ‘Feed A Child Feed A Nation’, through whom CX feed
economy, and entrepreneurs still need assistance in growing
underprivileged school children once a month. Recently, they also
WE’RE PROUD TO WORK WITH CHICKEN XPRESS
46 | Endeavour Magazine
teamed up with Mpact Recycling for a Mandela Day initiative, in
continued. “I also enjoy the company ethos, which allows quick
which they provided over 1000 meals for Troyeville Primary School.
decisions that enhance and grow the brand.”
Donna Noble, Communications Manager for Mpact Recycling, said
On top of the developments we’ve already looked out, Cook
of the initiative: “We chose Troyeville Primary School specifically
plans to make ongoing improvements in CX’s supply chain,
because we wanted to brighten the lives of children in one of
distribution and operational systems to enhance their profitability.
Johannesburg’s disadvantaged areas.” According to Delon, this
As he joked, “This is very tongue in cheek, but unless you are
collaboration was the first of many new charitable efforts for
the lead dog, the view never changes!” They are certainly choice
Chicken Xpress: “We have massive plans to increase our charity
words, but ones that reflect Cook’s playfulness as well as his
initiatives and community participations for the years to come.”
serious ambition for the company – traits that suit CX’s fun-loving
As a modern and dynamic brand, Chicken Xpress know the
professionalism perfectly. On a more serious note, Cook added, “I
importance of staying fresh and moving forwards. Even so, this
like Richard Branson’s words - ‘If your dreams don’t scare you, they
has been an impressive period of change for the company, with
are too small.’” We couldn’t put it better ourselves. Chicken Xpress
developments occurring across the board. In part, this has been
are definitely dreaming big, but the six-year-old company are in the
prompted by their change in COO. Chris Cook had over 20 years of
perfect position to use the foundation they have built and launch
experience in QSR top brands before coming to Chicken Xpress. He
themselves to the next level. With a passionate new COO at the
left a 100-store KFC franchise group in order to join CX, leaving the
helm, there’s no holding back.
corporate structure in favour of a smaller, vibrant, up and coming brand with huge potential. “I have been very impressed with the sheer volume of interest in the brand,” Cook noted; whilst CX has nowhere near KFC’s scale, they are well-loved in every area they reach. “CX is very well placed to return investment in a competitive QSR environment with significantly lower investment costs,” Cook
Endeavour Magazine | 47
JINDAL AFRICA WWW.JINDALAFRICA.COM // 27 11 706 8420
DIGGING DEEPER Last month, we spoke with Jindal Africa to learn about their plans for Jindal’s freshest African frontiers. This month, we got to know the new CEO of Jindal Africa, to see how these operations fit into a bigger, booming picture for the Jindal Group. WRITTEN BY ALICE INSTONE-BREWER
JINDAL AFRICA An offshoot of the India-based Jindal Group, Jindal Africa
predominantly focuses its efforts on mining. Headquartered in South Africa, with operations in some of Africa’s most resource-rich countries, the company sources and mines coal for both its parent company and the global market. As we touched on last month, Jindal Africa has several budding new ventures, including developing assets in Namibia and Cameroon and a potential power plant planned for Mozambique and Botswana. However, their two main areas of focus are its operations in South Africa and Mozambique.
W
e returned to Jindal to speak with Jona Pillay, company CEO, to talk about these larger-scale sites:
Given the competitive nature of the sector, Jindal Africa has a challenge on its hands in setting itself apart from its rivals. “It’s all
“We have two main operations – one in South Africa,
down to being cost effective. We’ve been doing a lot of initiatives
where we’re specifically mining for anthracite coal, and in the Tete
in terms of keeping costs down – upscaling our people, refusing
province of Mozambique, where we are mining for coking coal and
unnecessary expenditure. Once your costs are driven to the right
thermal coal. Our coking coal supplies our parent company in India,
efficiencies, you can compete in the market on price.
whilst the thermal coal is sold on the global market. Output from the South African mine is sold both locally and internationally.”
Initiatives such as the new projects in Mozambique play an essential role in keeping Jindal Africa efficient, cost effective and at
Mozambique, in particular, is the focus of several development
the top of their game. Between competition and a market with an
initiatives for Jindal. One project is the expansion of the area’s
unstable recent history, one would expect Jona to have concerns.
downstream mining activities, such as their coal washeries, which is
However, an experienced hand at the field, he knows how to read
predicted to double in capacity by the first quarter 2018 and bring
his market, and he isn’t worried; “I think prices are relatively stable.
about great cost advantages.
They are obviously volatile from time to time, but currently we find
This would be impressive enough, but it is not even the
that, specifically for thermal coal, they are at a very stable level.”
company’s most ambitious project in the country. Jona divulged:
For coking coal, it is a different story, as the market has been
“We’re in discussions with the government of Mozambique about
far from steady. “On the coking coal side, we’ve seen two phases
setting up a 150 MW power plant. From the coal we actually mine
where the impact of China drove prices all the way up to $300 per
out, 70% is ‘discard coal’ – coal we have no use for. However, it is
ton, and then it came down as fast as it went up. So, before we
good coal for power plant consumption.” The new plant would both
could even reap the benefits of the very high price, the price was
improve profits for Jindal Africa and would greatly reduce waste, as
coming down. The same thing happened a few months later, when
well as providing much needed power and employment in the area.
Australia had the flooding and the coking coal prices increased
“The economics for the power plant are favourable – especially in a
exponentially, but it also came down just as fast.” Again, this lack
country like Mozambique, which has a power deficit. It will play well
of stability doesn’t have Jona worried – he knows that a skilled
into the power pool.” It is a win-win situation. In fact, Jona believes
company creates its own. Between their coking coal largely being
that both projects will be a boon to the country’s economics, as
consumed by the Jindal Group, and this coal type being a hard-to-
well as Jindal Africa’s efficiency and profit margins.
come-by resource in Africa, these problematic conditions have had
50 | Endeavour Magazine
JINDAL AFRICA a minimal effect on sales. Meanwhile, Jindal Africa’s thermal coal
business and will soon reap the rewards on our top and bottom line.
and Anthracite coal are well sought-after, so it’s highly acceptable
With such fast results, Jona is clearly doing something right.
in the market. “Overall, we have a good bouquet of products that
Good leadership from a CEO calls for experience in the field and
is well received.”
shrewd business sense, but it also requires the right approach with
Being part of the larger Jindal family puts Jindal Africa in an
staff. “My philosophy is to empower, but to also hold accountable.
ideal position, providing them with security without smothering
I normally give free reign to the team to do what’s right for the
their operational freedom. Jindal Africa’s relationship with its
business. Obviously, I set directions and goals, and set priorities
parent company is close but separate. As the main purchaser of
so they’re not cluttered with 20 different things, but once that is
their Mozambique mine’s coking coal, there is naturally a great
established, I let them go. Then, I look at the results. I look at the
deal of back and forth over order placement, delivery, commercial
scoreboard all the time – the scoreboard matters. When dealing
terms and similar. In most other areas, the Indian parent entrusts
with his subordinates he believes in “tough love”.
Jindal Africa’s operations to its staff. “On any given day, we operate
Whilst tough love is an excellent strategy for encouraging and
independently. Decisions are taken here in Africa – we deal with
developing staff, Jindal Africa is not holding back on the love when
the local communities, local stakeholders, local customers.” Matters
it comes to developing their local communities. The Matafuleni
such as HR and PR are run past India for guidance and company
Early Childhood Development Centre, inaugurated by Jona in
cohesion, but the Indian company has the wisdom to know that
September, was the latest in many community improvement
local matters are best left to local minds that have the insight and
projects funded and organised by Jindal Africa. The company
feet on the ground to make those calls.
works to improve the quality of life in the areas around their mines:
Heading up those calls is Jona; before he was recruited for
“These very remote villages. We provide soccer fields for the kids,
Jindal, the CEO worked in coal-to-liquid operations for 16 years,
some fencing at schools, medical camps regarding HIV and cancer
leaving him more than qualified for the position. Although this
– we keep engaging in many activities.” In the case of the Early
experience was mostly in India, the South African local didn’t take long to re-acquaint himself with his home market. Jona was hired by the parent company between 2010 and 2017 to help with their most ambitious project at the time - India’s very first coal gasification plant. The plan for the plant was an ambitious, first-ofits-kind process that would turn the coal into gas, and the gas was used in its Steel producing plant as a reduction gas. The plant was
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designed to run on India’s indigenous coal for energy security, and it was intended to be the first of many in the country. Jona spent four and a half years on the project, which came to completion in end 2014. Prompted by the project’s success, Jona was appointed as Executive Director for Steel Projects where he was involved in the company’s most ambitious 6 million ton per annum integrated Steel plant in Orissa Angul - India where the company constructed India’s largest Blast Furnace. “By qualification, I’m a chemical engineer, so it’s a very diverse portfolio from petrochemical to steel to mining. When I went to India, that was quite challenging – it was a new country – but coming back to South Africa, because it’s home, you settle in easier.
Proud to be working with Jindal Africa
I got on top of things quite quickly.” Jona hasn’t wasted time – he has only held the position for a few months, but his progress as CEO is already measurable. “We went through a very rigid exercise of minimising costs, streamlining the business, improving efficiencies and improving the overall morale levels of our workforce and key stakeholders. In the last four months, we’ve already seen a sudden increase in production stability: much higher volumes, better outputs, better efficiencies. We’ve made big changes all around the 52 | Endeavour Magazine
102 Kenton Close, 4091 Durban - Wiggins KwaZulu-Natal - South Africa 031 562 3133
Childhood Development Centre, Jindal Africa saw a nursery in one of the areas neighbouring their mines that was in desperate need of a new building – so they bought some land and constructed it for them. “The local community had a nursery school for 50 kids. They were basically operating from a rough tin construction, so we decided to buy them a portion of land and built them a nice brick building that could accommodate 50 kids. We got it all kitted out, then invited the community and handed over the keys to the local
Empowering Local Women
leadership there. The kids were extremely happy with it.” Jona has only recently arrived at Jindal Africa’s helm, but already the results are showing both for the company and the community at large. Given the efficiency and savings achieved in so short a time, the future for Jindal’s African operations are more than promising. If they can continue to streamline and cut out unnecessary costs, their secure place in the market could turn into a highly competitive position. Who knows which giants they may be taking on in the future? We look forward to catching up with them again to find out!
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Endeavour Magazine | 53
DLA INVESTMENTS GRANITE QUARRIES WWW.DLAGRANITE.COM // 27 12 256 4506
ROCK SOLID South Africa is a hub for many mining operations, and yet granite isn’t one we often discuss. DLA Investments are changing this, providing a persistent and dependable supply of product, of surprisingly homogeneous quality. WRITTEN BY ALICE INSTONE-BREWER
DLA INVESTMENTS GRANITE QUARRIES
Mining for granite and marble is considered one of the
oldest industries in our history, with the organised, large-scale practise dating as far back as Ancient Egypt. The materials are still mined today, now sought the world over, with granite exporters found in China, Italy, India, Brazil, Canada, Germany, Sweden, Spain, the United States and, of course, Africa.
A
ncient Egypt utilised its granite to build vast and world-famous monuments that survived the sands of time: some of the most notable include Menkaure’s Pyramid, circa 26th century
BC, which combined granite and limestone, the Great Pyramid of Giza’s famous sarcophagus fashioned of Red Aswan granite, and the granite capstone to Amenemhat III’s Black Pyramid, now found in the Egyptian Museum in Cairo. These examples were just some of the many uses of granite, which was mined using slave labour and carved to create columns, door lintels, window sills, wall and floor veneers and many other details adorning Ancient Egyptian architecture. Whilst they undertook the oldest practise of this scale, Egypt was not the only country to heavily feature granite in early construction. The material became an integral part of Ancient Roman architecture, and even when their reserves thinned, they began to recycle and re-use the stone, implementing it for statues, houses of status, public buildings and temples. However, the world’s first entirely granite temple was construction in South India in the 11th Century AD, under the rule of the Chola Dynasty’s Rajaraja Chola I. The Brihadeeswarar Temple, built in Tanjore in 1010, was dedicated to Lord Shiva and was the tallest temple standing in South India at the time. The Gopuram alone – an ornate upper section to the temple’s shrine – is estimated to weight around 81 tonnes! Whilst we no longer use granite so excessively, it still has a place in modern architecture. Its resilience and impressive appearance
56 | Endeavour Magazine
DLA INVESTMENTS GRANITE QUARRIES has kept the stone a popular choice for monuments and memorials,
quarry is designed to provide a constant supply of granite. We
and also as a decorative tile and dimension stone for public and
have plentiful reserves to sustain long term future delivery. We are
commercial buildings. However, its uses aren’t purely for pomp;
also committed to operating within an environmentally sustainable
granite is an extremely hardy stone, and as such, a highly practical
framework by adopting responsible environmental care principles
one. Its weight and cost has seen modern materials replace it in
throughout the life cycle of our activities, including rehabilitation of
some contexts, but it is still a popular choice for engineers when it
the land.” This after-care for the land reflects a responsible attitude
comes to purchasing reliable surface plates. Used as a platform for
that extends to all areas of the company’s operations. Not only
precision work, it is essential for surface plates to be solid, resilient
protecting their product and the environment, DLA are also careful
and perfectly smooth, the flat surface needing to be accurate up to
to protect their workforce, stating that “management is active in
0.00001 inches. This is why granite remains a popular choice.
ensuring a safe, healthy and financially secure environment for all
This is also where DLA Investments Granite Quarries (DLA)
of our employees.”
comes in. South Africa, and Africa as a continent, are well known for
DLA’s conscientiousness does not stop there, but instead
their mining, including but not limited to world-famous diamonds,
extends beyond their work practises and the consequences
gold and coal. However, since Egypt’s early claim to fame, Africa
entirely, to include generous and empowering care for the local
is not well known for granite. Whilst this may be the case, the
community. Working particularly closely with the people of
continent certainly has granite to mine; DLA, based in South Africa
Sonop, the site of DLA’s first quarry, the company has sponsored
and affiliated with Afrika National Granite Ltd, claim that their
and been involved in many initiatives seeking to further the
own supplies are plentiful. On top of this, they are currently the
education of local children. For example, in partnership with non-
only quarry in South Africa that can produce blocks suitable for
profit organization The Better Living Foundation, DLA sponsored
manufacturing into surface plates. They are able to provide first
educational seminars on drug awareness for the students at Sonop
grade materials to surface plate manufacturers in blocks up to 15m
Primary School. Additionally, in partnership with the One Book One
in length, with a maximum of 70 tons per block. Whilst their granite
Learner project, DLA delivered workshops to both the teachers and
is sold and exported for all purposes, this ability to manufacture industry-ready surface plates that is putting DLA on the granite map. Granite is a natural material, and as such, is subject to variations in colour and properties. Even so DLA are remarkably confident in their material’s consistency, boasting that it is extremely steady throughout. This makes their mines a desirable source, as the fewer variables in a supplier’s product, the easier it is for their clients to plan and work efficiently. In this case, the apparently unvarying stone is an “unfractured medium grained dark grey rock, consisting of phenocryst of grey and black minerals”, according to DLA’s official description. The company can provide this stone to its clients as gangsaw blocks of raw material cut to any size and dimension up to 10m. DLA’s granite is sold both locally and on the export market. In fact, the division is pretty equally split, with around 50% of DLA’s market found within South Africa and the other 50% arranged through agents in Taiwan, North America and Eastern Europe. Today, DLA is run by Director Greta Del Sal, who took over the company in 2014. DLA currently has five quarries in operation, a remarkable four of which were opened since Greta took over leadership three years ago. The impact of this vast and gutsy expansion is already clear: production has doubled, with an even higher return likely in the years to come. To make the most of their new resources, DLA also recently invested heavily in new equipment from Barloworld. In particular, this equipment was intended for two of their four new mines, both of which only opened within the last year. DLA are thinking ahead, considering the sustainability not only of their operations and delivery for their clients, but also the ongoing environmental sustainability of the land they mine. “Our 58 | Endeavour Magazine
primary school students at the school after they became aware that many students were struggling with learning maths. The company had this to say about the initiative: “This unique project has yielded great results across South Africa. Students are now taught that maths is a language like any other, and they were shown how to use their personal maths dictionaries so that they can understand all the concepts and terminology they need in order to do well.” The workshops were an incredible success, not only on the day, but in the ongoing benefits they yielded for students: “For the Grade 7 learners, 92% improved their results by an average of 26%, which is exceptional.” The results show a genuine difference made in the lives of these children – in other words, the future employees and entrepreneurs of the area. “We wanted to contribute to our local community and give the children all the gains possible. Through education, we are doing our part to revitalize our nation by empowering our youth with knowledge.” This support not only contributes to a more secure future for these children, but by extension, the country and continent as a whole. As DLA continues to mine its reliable product, they will continue to do their part in supporting the Africa of tomorrow, in the hopes it can that it can someday soon be as solid and consistent as the granite they export.
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Building P5200, Gate 1 Necsa Industrial Estate Pelindaba, Broederstroom 0240, South Africa Tel: 012-305-5237 Mobile: +27 83-616-0523 - Dustin www.harlenquarrysupplies.co.za Endeavour Magazine | 59
KONZA TECHNOPOLIS CITY WWW.KONZACITY.GO.KE // 254 20 4343013
A SMART INVESTMENT The Information Technology sector is exploding, with not only the future of business but the very systems by which we run our lives to play for. As data becomes the new currency, it is a sector that any economy looking for a boost, and Kenya has now intention of missing out on the opportunity. We took a look at their long-term plans for the country, and in particular, their plans for Konza City. WRITTEN BY ALICE INSTONE-BREWER
KONZA TECHNOPOLIS CITY
Konza Technology City is designed to be a sustainable,
world-class technology hub and a major economic driver for Kenya. When complete, the ultra-modern city will house a vibrant mix of businesses, residences, and urban amenities, in the aims to create a smart city that workers from around Kenya and the wider world will be desperate to work and live in.
T
he project is the brain-child of the Kenya Government and
a strong technologies industry in Nairobi, which places Kenya in a
the Konza Technopolis Development Authority (KoTDA). The
good position to explore this opportunity and change the state of
city not only designed to join the wave of smart technology
play for its economy and its place in the global trading world.
cities cropping up and raising living standards around the world,
Looking far ahead, the Government of Kenya hired the
most notably in India and the Middle East, but it is also intended to
International Finance Corporation in 2009 to advise on the
form a global technology hub. This hub will focus on four economic
development of a smart city that could grow this and other
sectors that the Kenya Government feel will boost technological
technology industries in Kenya. Following these consultations,
growth for the country: education, life sciences, telecoms, and
the Government then commissioned feasibility studies that
Business Processing Outsourcing and Information Technology
demonstrated the viability of this plan, the focus on BPO/ITES,
Enabled Services (BPO/ITES).
and its potential contributions to local economic development. The
Konza City will be located in Makueni County, 60 kilometres
initial feasibility and concept master plan was prepared by Deloitte
from Nairobi on 5,000 acres of land formerly known as Malili Ranch.
and Pell Frischmann, a United Kingdom based consultancy. Finally,
This ambitious development was proposed in 2009 as part of the
still in 2009, the Konza Technology City project was initiated.
Kenya Vision 2030 push. As a flagship project for the initiative,
So what is a ‘smart city’? The latest global movement in urban
it is believed that its completion will contribute towards making
planning, ‘smart cities’ are built with an integrated information and
Kenya a more competitive and prosperous nation, and towards the
communication technology network that supports the delivery of
Vision’s economic aim of attaining Kenya a middle-income status
connected urban services and allows for efficient management of
by 2030. This ‘Economic Pillar’ of the Vision intends to achieve this
those services on a large scale. Specifically, a smart city framework
goal by encouraging an average economic growth rate of 10 per
will integrate the following four key city services: Infrastructure
cent per annum until this year, and is just one of three prongs to
services such as transportation, utilities, environmental and public
the country’s total goals (the other two being social and political).
safety services; citizen services such as access and participation;
As part of this vision, Konza will be a sustainable, world class
city services such as city information, planning and development;
technology hub and major economic driver for Kenya. Konza
and finally, business services that will support the operations of the
was initially conceived to capture the growing global Business
industry and commerce hub.
Processing Outsourcing and Information Technology Enabled
How will it work, though? Konza will gather data from smart
Services (BPO/ITES) sectors in Kenya. BPO/ITES business produced
devices and sensors embedded around the city, such as on
US$110 billion in revenues in 2010, and these revenues had tripled
roadways and in buildings. This data will then be shared via a smart
by 2015. Currently, Africa attracts only 1% of the total revenues
communications system and be analyzed by software that delivers
from this growing, highly profitable industry – a fact that Kenya
valuable information and digitally enhanced services to Konza’s
plans to change. To date, only a few countries in Africa are actively
population. For example, roadway sensors will be able to monitor
working to develop their BPO/ITES businesses, including South
pedestrian and automobile traffic, and adjust traffic light timing
Africa, Egypt, Morocco, Ghana and Mauritius. However, there is
accordingly to optimize traffic flows.
62 | Endeavour Magazine
www.gruppoicm.com
Formed in 1921, the ICM Group are a family of leading industrial companies. Mainly operating in the construction sector, our reputation is known throughout in Italy and abroad. Each of our companies draw on a heritage of professional experience and innovative technologies, so that as a whole, we represent your best guarantee of operational efficiency. Under the ICM umbrella, every company has honed its own realm of expertise, and each one belongs to a prestigious local or international association or body. ICM’s strength as a Group comes from a series of factors: we value and utilize our human resources, providing accurate professional training; we constantly deepen and expand our armoury of specialisations, meaning we have your every need covered; we operate with great flexibility, and our relationships with our customers are based on efficiency, punctuality and quality. The ICM Group are constantly engaged in large works of civil, industrial and infrastructure engineering. On top of that, we also operate in environmental problems resolution, real estate and the financial field. In Italy, we are one of the leading fifteen General Italian companies and two hundred international companies in terms of sales, employee numbers and portfolio of orders.
Konza Techno City, Kenya The Company, with their innovative to the region technical proposals, has been awarded the Engineering, procurement, Construction including Finance of Infrastructure Development for Phase 1 of Konza Techno City, teaming up with the Konza Tehhnopolis Development Authority (KoTDA) in developing an Smart City. The project is valued at EUR 391 million and is of 42 months’ duration with a delivery of the works by January 2021. The project includes the design and implementation of all public infrastructure, including earthworks and road works, water and electricity networks, waste collection system and sorting facility, fire and police station, bus transit hub, security facilities. ICM are proud to be part in the start up of the Konza Techno City’s development, and to share our expertise in Quality, Health, Safety and Enviroment management in the construction industry with KoTDA and the local Government and its various Agencies.
KONZA TECHNOPOLIS CITY This technology will go both ways: Konza’s population will
phase and the city as a whole will be developed as a public private
also have access to certain parts of the collected data, which
partnership, in which the Government will take a minimal role, thus
may include traffic maps, emergency warnings and information of
leaving room for prosperous investment and job creation for the
efficient uses of power and utilities. By leveraging the smart city
private sector.
framework, Konza aims to be able to optimize its city services and
Long-term, Konza is expected to house 260,000 people. This
create a sustainable city that responds directly to the needs of its
will include Kenyan professionals, and business people from further
residents, workers, and visitors. This is a complex system to put in
afield, hopefully attracted by the developing technology and
place, but Konza plans to learn from the best, taking lessons from
opportunities made possible by this new hub. It is positive to see
existing smart city frameworks including those in Spain, Singapore,
such initiative and financial investment being poured into Kenya
The Netherlands and Brazil.
from its government, and with the private sector wielding such
Phase 1 of construction for Konza City is now beginning
control over the project, its progress will hopefully be unhindered
to get underway. The first step of this phase is an Engineering,
by the country’s recently political upheaval. As many countries
Procurement, Construction and Finance (EPCF) contract to cover
are realising, the private sector has a strong hand to play, both in
the essential infrastructure development for the area, thus preparing
community support and charitable efforts, and in injecting much-
the way for further building work. The design and supervision for
needed movement and innovation into economies yearning for a
the project will be carried out by engineering consultants Technital,
boost. In Konza Techno City, the Kenyan Government has given
with the financing carried out by Unicredit and the construction
their country’s businesses a platform from which to empower
work itself being handled by the ICM Group. Once complete, it is
themselves and create growth.
expected that Phase 1 will create over 20,000 direct and indirect
Give a man a fish, and he’ll eat for a day, but once Kenya’s first
jobs. The development will include mixed-income housing, retail,
smart city comes together, who knows how far the effects of this
a hotel, school, clinic, community centre, and police station. This
employment and investment will spread?
66 | Endeavour Magazine
TANESCO WWW.TANESCO.CO.TZ // 255 022 2451130
LIGHTING UP YOUR LIFE With the Tanzanian Government set to heavily reinvest in the energy sector over the coming years, the Tanzania Electric Supply Company Limited is ready and able to handle the surge, just as it has done consistently since its inception in 1933. Endeavour Magazine decided to find out what all the buzz is about. WRITTEN BY AMY BUXTON
TANESCO
The Tanzania Electric Supply Company (TANESCO) came
about as a result of a complex and involved evolution process, but we’ll try to give you the condensed version. In 1931, two energy companies were brought into being: TANESCO and DARESCO. Each was focused on supplying energy to different regions and, as you’ve probably guessed, following a period of political change, the two were eventually merged under TANESCO.
T
he merger was completed in 1968, and as the Government of
energy companies, but in the case of TANESCO, they become
Tanzania already owned shares in both individual enterprises,
utterly unavoidable, as there are three essential core functions
it naturally took up position as the sole shareholder of the
being managed: generation, transmission and distribution.
newly evolved TANESCO. Taking the better known of the two
The generation of power at TANESCO is managed via hydro and
company names, the new entity embraced TANESCO’s existing
thermal technologies. Power is created at a number of National Grid
reputation, the familiar name offering reassurance to its customers
and off-grid stations, as well as independent producers that feed in
moving forwards.
to the pool. This network of energy production is critical in order
What followed was years of diversification, development and
to supply the transmission arm of TANESCO, which in turn supplies
service improvements, and while the directives carried out by the
residential and commercial customers. With 50 substations up and
team at TANESCO are far too numerous to name individually, it is
running, connected by 5817km of transmission lines, you might
worth noting that the views of the public have never been ignored.
think that the transmission elements are fully catered for already,
As a Government-owned operation, the company has a duty of
but expansion is on-going for this part of the organisation to ensure
care to the residents in the region. Therefore, when an issue with
that nobody goes without power. As residential areas expand, the
the services was highlighted, action was immediately taken:
demand for power will as well, so the need to develop the supply
“In 1999, the Government decided to unbundle and privatise
is constant.
TANESCO to promote efficiency, private sector participation and
The final sub-section of TANESCO is arguably the most
the introduction of competition in the electricity market. In 2002,
important, which the team absolutely acknowledges: “The
private consultancy Net Group Solutions of South Africa was given
marketing business unit stands at the customer end of the
a management services contract to run TANESCO. However,
electricity supply chain and is therefore TANESCO’s major interface
in 2006, the Tanzanian Government decided not to renew the
with customers. It deals with distribution of electricity, promotion
contract because of poor performance. Tanzania was dissatisfied
of services and all customer service matters. The unit is headed by a
with the quality of management provided by Net Group Solutions
General Manager who is assisted by two senior managers; a senior
and added that the Government was obliged to listen to the views
manager for marketing and customer service on the one hand, and
of the public following complaints about the quality of service
a senior manager for distribution on the other.”
being offered by TANESCO.” Of course, service expectations are critical when discussing 70 | Endeavour Magazine
Whilst offering the best in customer service is clearly a huge priority, it is interesting to note how the split between residential
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UGANDA
KENYA
RWANDA TANZANIA
MADAGASCAR
Implementation of : 3,650 connections, 695 km of MV/LV lines, 185 MV/ LV substations & 10,000 prepayment meters.
Implementation of : 337 km of MV/LV lines & 41 MV/ LV substations. Supervision of construction works of 110 kV line & associated substation.
Supervision of construction works of a 60 MW diesel Power Plant & a 66/90 kV network. Repair of the 90 kV HV line connecting N’Djamena & Gassi substations.
TANESCO and industrial clients looks. You might think that the majority of
a number of tenders are currently being considered, which means
TANESCO’s revenue would come from domestic supply, but in
more transmission lines, extra sub-stations and improved service.
actual fact, it is Large Power Users (LPUs) that are bringing in the
In addition, some greener initiatives are also going to gain focussed
lion share: “It is estimated that over 80% of all the revenue is earned
attention - in particular, the use of environmentally friendly poles
from only 1,700 Large Power Users (LPUs) who form 0.24% of all
for their power lines in place of trees.
customers countrywide. LPUs are those customers that consume over 7,500kWh per month.”
Claiming to “light up your life” is a bold statement, but TANESCO is more than up to the challenge. A heady combination
When you understand this, it becomes even more impressive
of innovative leadership, a quality product, reliable distribution
that the management team, lead by the visionary Dr. Tito Mwinuka,
and dedicated customer satisfaction professionals all means that
seeks to maintain a focus on the satisfaction of every consumer,
Tanzania can rest easy. Whenever a switch is flicked, there will be
and not just those large users that generate the most profit.
power behind it, and in the unlikely event that there isn’t, there’s a
Then again, we are discussing a government-owned company
dedicated professional at the end of the phone or an email waiting
that runs in accordance with a mission to “generate, transmit
to help. If that’s not enough of a reason to understand the buzz
and supply electricity in the most effective, competitive and
surrounding TANESCO, then we don’t know what is.
sustainable manner possible”. More than that, TANESCO seeks to, “be an efficient and commercially focused utility supporting the development of Tanzania”. So, how will TANESCO move into 2018? The short answer is efficiently and with a good dose of energy, but looking at things in more detail, with a number of potential developments and expansions. Taking a look at the procurement list alone shows that
72 | Endeavour Magazine
ASSOCIATION OF CITIZEN CONTRACTORS TANZANIA (ACCT) WWW.ACCT.CO.TZ // 00255 762 074 441
SPECIALISTS IN SAFEGUARDING Evolving any region in the world takes infrastructure development and talented construction professionals, but who’s watching over these groups? In the case of Tanzania, it’s the Association of Citizen Contractors; Endeavour Magazine decided to look at the association a little closer, to see how they are supporting their country’s industry. WRITTEN BY AMY BUXTON
ASSOCIATION OF CITIZEN CONTRACTORS TANZANIA (ACCT)
It can be difficult to determine exactly what certain
associations do or who they have been set up to protect, but in the case of the Association of Citizen Contractors Tanzania (ACCT), the directives are exceptionally clear. Founded in February 2011, ACCT has come into being both to safeguard Tanzanian contractors and encourage exemplar professionalism from them as well.
W
hen you think about the complexities of modern
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fantastically
reassuring to know that respected associations are put
in place to oversee the levels of dedication and professionalism required. ACCT is very vocal in terms of what it hopes to achieve in this regard: “ACCT aims to be the leading construction industry representative body in Tanzania and east Africa. We want to promote the image of local contractors by enabling members to deliver a professional construction service and create a fair environment that is conducive to the profitable and efficient operation of contracting business, to the benefit of both members and their clients.” We know that trade associations tend to protect the interests of members only, but here, there is a genuine sense of stewardship towards clients as well as contractors. This responsibility is inspired by the associations’ core values, which run themes of trust, integrity, respect and quality workmanship through ACCT’s very core. Knowing what the association aims to do leads us to ask who can actually join. ACCT reveals that there are two different types of membership available: “There are two types of membership namely;
P.O.Box 866, Iringa, P.O.Box 15931 Dar es Salaam-Tanzania, Mob: 0753 430028 / 0784 442 292 / 0653 207755 Email: ride_incltd@yahoo.co_uk 76 | Endeavour Magazine
ordinary members and affiliate members. Ordinary members are all local contractors registered with the Contractor’s Registration Board (CRB). All categories and classes are eligible. Affiliate members are those who are construction materials and
ASSOCIATION OF CITIZEN CONTRACTORS TANZANIA (ACCT) equipment suppliers, construction materials manufacturers and
country to address current challenges facing contractors and have
financial institutions, i.e. banks and insurance companies.”
a round table dialogue with relevant Government bodies to discuss
Basically, if you are even remotely connected to the construction
how to solve them.”
industry, there is a membership waiting for you and if you choose
ACCT’s goals support the belief that communication, education
to join. This blanket approach is vital for creating a universally
and interaction are the building blocks of a better future - all of which
agreed set of best practice rules, whilst encouraging everyone to
is also supported by their long-term goals: “Our long-term goals are
take responsibility for his or her individual parts; each member is
to establish an association’s bank, to open a tailor-made vocational
bound by the same stringent standards and codes of practice as
training college for all construction trades, to establish commercial
everybody else.
investment to enable the sustainability of the association and to
Overseen by a diverse committee of construction industry
help citizen contractors to tender for work internationally.”
experts, ACCT has a number of realistic short-term goals in place,
Essentially, we read these goals much like a shopping list for
as well as long-term agendas that are always being worked towards.
guaranteed success, profit and satisfaction for everybody within
Each goal seems simplistic, but when you combine them all
and touched by the construction industry. There’s no downside,
together, you get an idea of exactly how the Tanzanian construction
other than the time it will take to see them through. In particular,
industry could work if everyone chipped in and committed to
it is beneficial to have round-table discussions in any industry,
doing their part. The name of the game is transparency, pride and
as communication and the sharing of ideas lead to the natural
accountability, both in the short and long-term;
evolution of bigger and better solutions. However, joining ACCT
“Our short-term goals are to prepare and organise tailored
also has a number of other fantastic benefits. For example, “When
training for members, to develop links with suppliers and
you become a member of ACCT you will easily access tender
manufacturers of construction materials and equipment, and to
information, industry intelligence, mediation services, contract
connect with other contractors’ associations within and outside the
downloads, cost reductions and credibility.”
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There are many more upsides to becoming an ACCT member, but these are some of the most important. It goes without saying that having a one-stop resource would be exceptionally useful in any industry, but given how fluid and ever-changing construction is, having that portal that allows you to download legislation and
Corporate and Commercial, Banking and Finance, Real Estate and Investment, Labour, Employment and Commercial, Tax and General Civil Litigations
even contract templates is immeasurably handy. It’s also true that companies naturally enjoy a higher profile and greater sense of credibility once a professional association membership has been granted. Project support is also offered in the sense of supplier discounts being leveraged. This is an invaluable helping hand for any fledgling or established construction professional, as is the ability to apply for working capital from banking institutions with the full support of a recognised trade association. With a constant need for new and improved infrastructure, affordable housing and commercial properties, Tanzania is not going to let up in terms of construction demands. Therefore, it is vital that there is a governing body of sorts, or at least a watchful eye that makes sure everyone is doing their bit to maintain the good name and reputation of the industry. ACCT is that watchful eye and it has seriously ambitious plans to help every one of its members. We can’t wait to see their plans come to fruition.
Fadhili Nathan Lwendo MANAGING PARTNER / ADVOCATE
Khalifa Kiango PARTNER / ADVOCATE
P.O.Box 80223, Dar es Salaam, Tanzania. Tel: (+255) 758833340 E-mail: info@zenithattorneys.com Website: www.zenithattorneys.com
Endeavour Magazine | 79
KANU EQUIPMENT WWW.KANUEQUIPMENT.COM // 0027 11 923 7000
EXPERIENCE THE SUPPORT Heavy equipment goes handin-hand with both the mining and construction industry but it is the agricultural sector that demands machinery more extensively, to sustain the world’s food production. As one of the earliest industries to require the development of machinery, agriculture remains an essential and profitable component of the industry at large, the world-over. WRITTEN BY ALICE INSTONE-BREWER
KANU EQUIPMENT
Across the African continent, agriculture provides
livelihoods for many, most still with scattered small to medium sized enterprises that rely largely on the support of their associations to maximise their potential. Kanu Equipment has been well received within these markets with their readiness to provide this much-needed support for optimum output.
I
t didn’t take long for Kanu Equipment to get their core message
provides a wide range of replacement parts to minimise this risk.
across to their customers. Founded in 2012, the company has
They also offer skilled maintenance support with round-the-clock
built a firm reputation as a reliable organisation that cares, living
standby to ensure the machines are back in action as soon as
up to their ethos of service excellence. Kanu Equipment sells and
possible. This support system has won Kanu the loyalty of several
rents heavy equipment and related aftermarket replacement parts
world-class equipment brands, who are happy that their equipment
across Africa’s agricultural, forestry, mining, earthmoving and
is backed with the highest level of care. “We have longstanding,
construction sectors. They’ve taken their service offering to new
entrenched relationships with all of our OEM suppliers, but our
levels by providing exceptional customer service and maintenance
flagship equipment brands and companies include Liebherr, Bell,
that was sorely lacking in many regions.
Case and Terex-Finlay. We also work closely with Costex Tractor
We spoke with Stephen Smithyman, company founder and CEO,
Parts for aftermarket replacement parts, and Black Cat Wear Parts
about this after-sales care: “Our mission is to lower our customers’
as our ground engaging tools partner. These companies have all
cost of doing business. In part, that’s through the support that we
supported us tremendously since inception.”
provide. Our positioning statement is ‘Experience the Support”, as
Although Kanu is best known for its contribution to the
we have chosen to differentiate ourselves by being a service-with-
construction sector, their agricultural clients are just as prolific
support organization, adding value especially to our customers that
and it was in fact in this sector that the company began: “Our first
operate in the most challenging environment`s.
customer was in the sugar cane industry. We worked with Bell
For many agricultural operations, work is seasonally-dependant,
Equipment initially – they are one of the leading companies in
which means that there is a limited period where conditions are
terms of product range for this market sector. Most recently we’ve
favourable for operation. Machine downtime can be harvest-
expanded our equipment offering to include Case Agriculture
threatening and needs to be avoided at all costs. Fortunately Kanu
and we are now in the fortunate position to offer an array of
82 | Endeavour Magazine
KANU EQUIPMENT complimentary aftermarket spares to ensure that farmers and
but with our focus on service we have successfully navigated
Agribusinesses alike are fully supported”.
around these threats.”
The company started out in Congo, followed by expansion
One of the biggest obstacles Kanu has encountered, both in
into West Africa, Botswana and Zimbabwe. Over an eight-month
terms of business and human endangerment, was the Ebola virus.
period, this was followed by a further push into Ghana, Liberia and
During an early period of expansion, Kanu found themselves
Sierra Leone “We basically started out in the hardest countries
immersed in a few territories that were struggling with this crisis,
to do business in, and then worked our way around.” The idea for
but rather than drawing back, they stood firm. Truly going above
the company came to Smithyman in Congo when he encountered
and beyond the call of duty, Kanu’s promise to its customers to
his own difficulties in hiring equipment for a mining exploration
provide support, no matter the conditions, prevailed. “We proved
project. “We were trying to find a bulldozer to rent. We couldn’t
that we were prepared to support or customers even in the midst
find one, and then when we eventually did, the rental rate was
of turmoil as many of our staff put their lives at risk to remain
really high.”
steadfast”
“What inspired me to start the company was that I saw a real
Whilst their mining and construction projects see them
lack of support for people who are running machines. The business
operating across the African continent, West and East Africa is by
opportunity presented itself as I realised that if we could simply
far their strongest market in terms of agriculture. With holdings
provide additional support and service to our customers, we
in sugar cane, cocoa, cotton and bananas, the Western territories
would succeed. We cover a variety of sectors, and the territorial
boast crops that attract investment and maintain the demand for
landscapes for each are dynamic. There can be no ‘one size fits all’
export. We have recently opened an office in San Pedro in Ivory
approach to tackle any obstacles. Africa as a whole is in a growth
Coast to support the growing Cocoa Business in that region.
phase, with threats to industry ranging from economic uncertainty to climate change to political instability. There is much competition
We have also commenced operations in Tanzania with Bell and Liebherr as we have seen great agricultural opportunity there.
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84 | Endeavour Magazine
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In an unpredictable market such as agriculture, it may seem unsurprising that Kanu are constantly expanding their reach. The ability to be on-the-ground with maintenance, supplies and support is key to what the company offers, and they are not afraid to take the necessary risks to uphold their promises. “I am driven to set goals and reach them,” Smithyman shares. “I am up early every morning ready to embrace new challenges. I don’t see a challenge as a threat, I see it as an opportunity to grow. Our staff are motivated and inspired to work for a company that is determined to make a positive impact on the continent’s development”. It is this passion that has been the driving force behind Kanu Equipment’s achievements this far, and will continue to carry them forward through whatever may come next. “Attitude is everything”, says Stephen, “With the right attitude, we have every reason to continue to soar”.
Endeavour Magazine | 85
KETRACO WWW.KETRACO.CO.KE // 00254 20 4956000
KENYA’S BRIGHTEST SPARK The result of a clever Kenyan Government mandate to simplify the electricity supply throughout the country, The Kenya Electricity Transmission Company (KETRACO) was formed in 2004 and has been delivering reliable, cost-effective energy to the people ever since. Endeavour Magazine ignored all safety instructions and got down to the wire to find out more. WRITTEN BY AMY BUXTON
KETRACO
In no way does it sound simple to put an electricity
company in place, and the Kenyan Government had a real task on their hands when it came to superseding what was already in operation and splitting different composites of the Kenya Power and Lighting Company (KPLC) into specialist subsidiaries.
A
s they say, necessity is the mother of invention, “It was decided that a separate company wholly owned
by the government and funded by the exchequer be created
there is another driving force behind the inception - one with a far more socially responsible and personable element that befits any government that truly cares about the welfare of its people:
to construct future additional transmission lines. Unbundling KPLC
“Creation of the company also aimed to shield electricity
would have been challenging, owing to its status as a publicly
consumers from higher tariffs in future arising from construction
quoted company. The Government therefore registered The Kenya
of this expensive power transmission infrastructure. Projects
Electricity Transmission Company Limited in November 2008. Its
undertaken will be fully funded by the Government and no capital
core functions are to plan, design and construct, own, operate and
related expenses will be passed on to the consumer. Thus, the
maintain high-voltage electricity transmission lines and fiberoptic
transmission company will contribute to the improvement of power
cables. KPLC retained and continue to operate all previously
quality, supply and affordability.”
existing transmission systems.”
Now there’s a reason for the Kenyan people to get behind, and
In a bid to prevent an arduous task of breaking down and
how honest that it has been put forward alongside more commercial
reassigning previously managed projects, KETRACO was brought
rationale. Given that over 4,000km of high voltage transmission
in to look after new generation installations, which, naturally, will
infrastructure was just the first project for KETRACO, it seems
keep growing in number until they are the majority. The question
as though more reliable and affordable energy won’t simply be a
is, however, why did the need for this inspired solution come
pipe dream either; this WILL be a reality for Kenya and has all the
about at all?
makings of a fantastic bargaining chip for engaging in power trade
“The creation of KETRACO was necessitated by the desire of the
deals with neighbouring regions.
Government to transform power transmission into an open access
The Kenyan Government put a strict mandate in place for
system, to allow large electricity customers to purchase power from
KETRACO, in a bid to ensure that it would complete a number of
generators. With future interconnections of Kenya’s electricity
important functions as a matter of course. By taking ownership and
grid with Ethiopia, Tanzania and other Southern Africa Power Pool
responsibility for all aspects of high voltage electricity transmission
(SAPP) countries, and strengthening of the interconnection with
grids and regional power interconnectors, from planning through
Uganda through the Nile Equatorial Lakes Countries Electric Grids
to construction and maintenance, they are expected to form the
Interconnection Project (NELSAP), the Government views open
backbone of the National Transmission Grid: “In carrying out this
access as having potential to enhance market and supply options
mandate, the Company is expected to develop a new and robust
for both power generation and large consumers.”
grid system.”
This might all sound very corporate and profit-driven, but 88 | Endeavour Magazine
This expectations ties in beautifully with the strap line of the
KETRACO company, which reads: “building a world class national grid”, and
a process of thorough investigation to identify impacts they may
really gives rise to the elements that are most important as well.
have on the environment and social wellbeing, and formulate
Quality and reliability are top priorities, but so is the provision of
mitigation measures that are necessary to avoid, minimise or offset
electricity to those regions that have long been without it. It’s easy
predicted adverse impacts. Some tools used in this process include
to forget that there are still occupied areas in the world that go
Environmental and Social Impact Assessment (ESIA), Environmental
without this most basic of energy need, but soon, that will all be a
Audits (EA), Geographic Information Systems (GIS), Resettlement
distant memory for Kenya.
Action Plan (RAP) and Indigenous People Plan (IPP).”
So, what we have in KETRACO is an ingenious development
With this deep-rooted commitment to environmental concerns,
brought into being by the Kenyan Government, with a view to not
it will come as no surprise that KETRACO also seeks to protect
only improving the lives of countless people, but also opening up
its team members through an equally inclusive health and safety
potential trade channels and making energy infrastructure that
policy. People are the driving force of the industry, and the quality
much more efficient and effective. Whilst this all sounds exciting,
of their lives is all the motivation that’s needed. It might not sound
it doesn’t have the ring of an environmentally-friendly endeavour
like the secret to big business, but it is a necessary guiding principle
about it, but that’s just a deceptive façade, as KETRACO does have
for any responsible governing body.
a comprehensive green initiative in place:
We can’t wait to report back about all the developments that
“As a responsible organisation, KETRACO prides itself on
KETRACO puts in place for the people of Kenya, but for now, just
being committed to environmental protection and conservation.
the very promise of these people-centred initiatives are enough to
Borrowing from the principle of sustainable development and
keep us buzzing.
guided by the Environmental Management and Co-ordination Act (EMCA) 1999, among other local and international legal legislations, KETRACO ensures that all its project activities undergo
90 | Endeavour Magazine