DECEMBER 2019 www.littlegatepublishing.com
AFRAA Championing African Aviation
FALKE SOUTH AFRICA They’ve Got Your Feet Covered
ENERSUL Experts In Sulphur UK £4.95 CAN $7.95 USA $7.95 EUR €5.95 SA ZAR 69.00
A CUP OF AFRICA
JAVA HOUSE INSPIRED BY YOUR SUCCESS
HEADS OF DEPARTMENTS Managing Editor Alice Instone-Brewer editor@littlegatepublishing.com Sales Manager Emlyn Freeman emlynfreeman@littlegatepublishing.com Editorial Researcher James Lapping james@littlegatepublishing.com Editorial Researcher Alex Hayes alexhayes@littlegatepublishing.com Editorial Researcher Dennis Morales dennismorales@littlegatepublishing.com Editorial Researcher David Kimberley david@littlegatepublishing.com Editorial Researcher Eve Wright eve@littlegatepublishing.com Corporate Director Anthony Letchumaman anthonyl@littlegatepublishing.com Lead Designer Alina Sandu studio@littlegatepublishing.com CEO Stephen Warman stevewarman@littlegatepublishing.com For enquiries or subscriptions contact info@littlegatepublishing.com +44 1603 296 100 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 of view expressed in articles by attributing writers and/or in advertisements included in this magazine do not necessarily represent those of the publisher. Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, 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 by any means without the prior written consent of the publisher. Copyright © Littlegate Publishing Ltd 2019
EDITOR’S NOTE
I
t’s the winter holiday season again! As I write this, the Americans in our office are gearing up for Thanksgiving, and by the time you’re reading it, it’s December! If you’re celebrating Hanukkah, Christmas or the Winter Solstice this year, we hope it’s a time of peace from all of the hectic news, business and politics, and a time that you’re able to spend with whoever’s most important to you. We’re based in the UK, so the general election on December 12th will make sure that we can’t have a totally politics-free holiday season, and wherever you are, I’m sure life will continue to happen there too, but try to find some time to slow down, set your phone aside and clear your mind. After all, next year, it all begins again. This month, we were lucky enough to speak with some seasonally appropriate companies. First of all, we spoke with Java House about what makes the perfect coffee venue, which had us pining for hot lattes and cappuccinos to chase away the cold. We also spoke with Falke in South Africa, who are part of a global German sock company – and what’s more Christmassy than that? In our Amazing World series, we also took a look at Humbug Icebergs, and the cause behind the stunning phenomena, as well as digging into the mystery of ‘sailing stones’. This year has been full-on, and next year will be no different, but we’re looking forward to seeing companies’ 2020 visions come together, and what brilliant new innovations the fresh year will bring. Most of all, though, we’re looking forward to a break and a rest, and I’m sure you agree! Grab a toasty hot drink, settle down in some comfy socks, and spend a little of that quiet time having a browse through our last issue of 2019. Alice Instone-Brewer
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CONTENTS
Model Y, Tesla
FEATURES 13
A Cup Of Africa Java House
21
They’ve Got Your Feet Covered Falke South Africa
26
Amazing World
Experts In Sulphur 29 Enersul Championing African Aviation 35 AFRAA A Future To Bank On 47 AFDB 51
A Clear Vision Lesotho Chamber of Mines
57
Dominating The Market Hindustan Zinc
65
Back In The Air Ethiopian Airlines
Lifting Nigeria 71 PETAN Enersul 4 | Endeavour Magazine
Falke South Africa
ARTICLES
Business Headlines
6 Asia 7 Africa 8 Americas 10 Middle East 11 Europe
Amazing World
26 62
Humbug Icebergs A Sailing Stone Gathers No Moss
Automotives 42
Model Y, Tesla
Lesotho Chamber of Mines Endeavour Magazine | 5
BUSINESS HEADLINES ASIA Japanese store Daimaru rethinks badges for staff on periods A Japanese department store that introduced badges for staff on their periods is now ‘rethinking’ its policy. When the badges were introduced – which feature a cartoon character called ‘Miss Period’ - some members of the public reacted with concern, feeling that the badges were harassing to staff by sharing their personal menstrual information. The store, Daimaru, has responded that the badges were actually suggested by staff, and sought to provide support for staff members on their period, such as letting others know that they may need something carried for them, or longer breaks. The badges were not compulsory, and some staff were reluctant to use them, but others felt they were helpful. The store is now looking for an alternative that doesn’t mark staff out to their customers.
Hong Kong police find almost 4,000 petrol bombs on campus Hong Kong police say they found almost 4,000 petrol bombs in two days while clearing the Polytechnic University campus. The campus was the site of a standoff between activists and police. Now that protestors have left, police found 3,989 petrol bombs, 1,339 explosive items, 601 bottles of corrosive liquids and 573 weapons. The campus has now been handed back to the university management. Protesters barricaded themselves inside the campus two weeks ago. The authorities 6 | Endeavour Magazine
responded by sealing off the university grounds, trapping more than 1,000 protesters inside. Eventually, most protestors either surrendered or escaped. 810 people were arrested when leaving the campus, with 567 nearby. 318 people under the age of 18 had their names recorded. Trio jailed for planning Christmas attack in Melbourne, Australia Three men have been jailed for plotting a large-scale terror attack in busy areas of central Melbourne, Australia. The men, inspired by Islamic State, had aimed to use machetes and explosives to maximise casualties during the Christmas period in 2016. It was one of the most substantial terror threats to Australia in recent years, the government said at the time. A court jailed Abdullah Chaarani and Ahmed Mohamed for 38 years. Hamza Abbas was jailed for 22 years. The men, all aged in their 20s, were convicted last year after admitting to their crimes. A fourth man, Ibrahim Abbas, was jailed for 24 years last year for his role as ringleader of the group. South Korea closes a quarter of its coal generators this winter South Korea will shut down up to a quarter of its coal-fired generators for three months this winter in an effort to curb air pollution. The country’s Ministry of Trade, Industry and Energy said that between eight and 15 generators will close from December 1 to February 29, with the remainder operating at a maximum 80% capacity. There are 13 coal plants in South Korea, according to the Korea Power Exchange, and there can be multiple generators within one plant It will be the first time South Korea has closed coal-fired generators during winter when demand for electricity is at its highest and the ministry said the move would reduce fine dust emissions by 44% from last year.
AFRICA Egypt raids one of its last independent news publications The office of Mada Masr, one of the last independent news outlets in Egypt, was raided by security forces on November 24th. Four of the website’s staff have been detained. A statement posted on Mada Masr’s official Twitter account said the raid started at around 1:30 p.m. local time, when “plainclothes security forces entered the Mada Masr office by force.” “They immediately began confiscating everybody’s laptops and phones. When asked who they were, they aggressively refused to answer.” The journalists said they got their phones and laptops back just before 5 p.m. local time. Attalah, the news outlet’s editor-in-chief, was taken into custody, along with journalists Mohamed Hamama, and Rana Mamdouh. Mada Masr’s news editor, Shady Zalat, was taken by Egyptian security forces from his home in Cairo early on November 23rd, the publication said. According Mada Masr, all four journalists were released late on the 24th. Nigerian inmate ran an online scam from prison; made $1 million A man serving 24 years in a Nigerian maximum security prison used a network of accomplices to conduct an international scam that brought in $1 million, officials said. Hope Olusegun Aroke was convicted of fraud four years ago and was held at a maximum security prison in Lagos after his conviction, according to Nigeria’s economic and financial crimes commission. During that time, he was taken to the hospital for an undisclosed illness and instead of returning to prison, he ended up in hotels, where he’d meet his wife and children and attend social functions, authorities said. The circumstance of Aroke’s admission into the hospital and those who aided his movement from the hospital to hotels and other social engagements is being investigated.
Gabon makes efforts to balance timber industry and the environment It’s a tiny country in West Africa, but 80% of Gabon is covered in tropical rainforests, which has given rise to the country’s second highest export -- timber. The country manufactures and exports veneer, thinly sliced hardwood that is laid over produced wood to give furniture, cabinets, and floors a polished look. Gabon is the second most forested country in the world, according to Lee White, the country’s Minister of forests, who says the country has ambitious targets to meet with its natural resources. The country produces about 500 million euros of timber exports, and aims to get to five billion euros over the next six years, according to White. Gabon wants to ensure it does not damage its rainforests and the environment during this process, and in September, it received $150 million in international funds to preserve its rainforest. Using the funding, Gabon will reduce greenhouse gas emissions and battle deforestation. Dozens killed in Kenya landslide At least seven children are among the 29 people killed after heavy rainfall triggered a landslide in Pokot, northwest Kenya, authorities have confirmed. The bodies of the victims have been recovered and dozens more people are injured, West Pokot County Commissioner Apollo Okello said. The landslide began around 2:30 a.m. on November 24th in West Pokot County, near the Ugandan border. Flooded roads and bridges were swept away after the incident, hindering rescue operations, Okello added. President Uhuru Kenyatta released a statement sending condolences to those lost in the disaster. “To those who were injured in the calamitous incident and are receiving treatment in different hospitals I pray for your quick recovery and restoration,” he said.
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AMERICAS Papa John’s CEO let go over racist slur; interview reaction goes viral Papa John’s founder, John Schnatter, went viral after an unusual interview after being ousted from his company. The CEO was let go after using ‘the N-word’ on a conference call with shareholders. Schnatter says that his removal was calculated, and that his use of the word was within a complaint that some people use it without facing consequences. ‘Papa John’ was in an interview with WDRB that went viral, with many people making comments that he looks unusually wet, and reacting to his claim to have eaten 40 pizzas in 30 days. He has named Steve Ritchie, the former president of Papa John’s, and Olivia Kirtley, who is on the board of directors, as some of the people who supposedly had him “set up”. He also claims that the company’s pizza quality isn’t what it used to be, and has said Rob Lynch, who replaced him as CEO, has “no pizza experience.” His interview received the most attention for his remark that “a day of reckoning is coming”. Protesters celebrate after Trump signs Hong Kong human rights act The American President recently signed an act in support of the Hong Kong protest movement, despite potential backlash from Beijing that could derail delicate US-China trade talks. The act was passed almost unanimously by both houses of Congress. The bill would permit Washington to impose sanctions or even suspend Hong Kong’s special trading status over rights violations. Its signing has been met with celebration from Hong Kong protestors, who have been seen waving American Flags and putting up posters of thanks to the American president. Shortly after the bill was signed into law, China’s Foreign Ministry accused the US of “bullying behavior,” “disregarding the facts” and “publicly supporting violent criminals.” On November 24th, pro-democracy candidates scored a landslide victory in district council elections, framed as a referendum on the protest movement, which began in June 8 | Endeavour Magazine
in opposition to a controversial extradition bill but has grown to include demands for greater democratic freedoms and inquiries into alleged police brutality. Trump administration to cut its financial contribution to NATO The Trump administration has moved to substantially cut its contribution to NATO’s collective budget, according to several US and NATO officials. Previously, the US provided some 22% of NATO’s direct funding. It’s a largely symbolic move as NATO’s direct budget is relatively small, at about $2.5 billion, and is separate from national defense budgets that NATO recommends should stand at 2% of GDP. Historically, the US has made a greater contribution to NATO than other NATO allies – a fact Trump has critisized and pledged to correct. Trump has also slammed NATO allies, particularly Germany for not meeting the 2% NATO defense spending target, which only eight of 29 members currently meet. All members pledged to reach the 2% level by 2024 but not all of them currently have plans to do so. Amazon deforestation hits highest level in over a decade The rate of deforestation in the Amazon rainforest has risen to its highest level in 11 years, according to Brazilian government data released November 25th. The data, which included the estimated deforestation rates for nine states of the Brazilian Legal Amazon, was generated by the Satellite Legal Amazon Deforestation Monitoring Project (PRODES). About 9,762 square kilometers of rainforest were lost for the 12 months through July 2019, according to the release from The National Institute for Space Research (INPE). That’s a 29.5% increase over the previous 12 months and is the highest rate of loss since 2008, INPE said. The increase in deforestation comes while the country is under the leadership of far-right President Jair Bolsonaro who was elected in October 2018.
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MIDDLE EAST Houthi prisoners freed by Saudi Arabia return to Yemen Yemen’s main airport was briefly reopened on November 28th to receive more than 100 Houthi prisoners of war released by a coalition led by Saudi Arabia and the UAE, as efforts to end the five-year conflict gain momentum. The International Committee of the Red Cross supervised the arrival, and reported that 128 of 200 freed Houthis arrived at the airport The airport was previously closed on August 9, 2016 by the Saudi-UAE-led military coalition. The transfer of Houthi prisoners is being seen as a sign that the Saudi-UAE-led coalition and the rebels were advancing a United Nationsbrokered deal aimed at ending the war in the Arab world’s poorest country. In September, the Houthis freed scores of captives who had been held since the rebels seized Sanaa, along with much of northern Yemen, in 2014. Algerian artist detained over critical cartoons before polls A court in Algeria has ordered a cartoonist be kept in pre-trial detention in a move that activists decry as part of a government clampdown on free expression in advance of a controversial presidential election. Police in plain-clothes arrested Abdelhamid Amine after raiding the premises of his creative agency in the northwestern city of Oran and seizing all of his material. Local reports in the North African country on November 28th said Amine is expected to be presented before the court on December 5, almost ten days after his arrest. Algerian authorities have detained hundreds of demonstrators in recent months over their objection to the December 12 presidential vote. The National Committee for the Release of Detainees, a local NGO, said the artist’s arrest was likely due to his most recent works that dealt with the upcoming election. Lebanon pays $1.5bn debt to ease financial tension Lebanon repaid a $1.5 billion Eurobond on November 28th, to alleviate speculation over 10 | Endeavour Magazine
its ability to avoid a default during a political and economic crisis. The next bond payment is scheduled for March, when a $1.2 billion Eurobond comes due. Lebanon has never defaulted on its obligations despite struggling under one of the world’s biggest debt burdens, and the central bank had repeatedly said it would cover the $1.5 billion bond. However, weeks of nationwide protests that ousted the government saw credit risk surge and investor confidence drop. The yield on the March 2020 bond rose as high as 105% last week from a mere 13% on October 17th, when the demonstrations began. Foreign bondholders are estimated to hold $500 million of the repaid Eurobond, while the central bank has $600 million and the rest is most likely held by local banks, according to a Bank of America Merrill Lynch research note this week.
Iran protests: internet shut-down In November, a drastic increase in petrol prices sent Iranians to the streets in antigovernment demonstrations that have turned violent. Protesters burned banks, government buildings and clashed with police. According to Amnesty International, more than 140 people have been killed in various protests around the country since November 15th. That death toll has been disputed by the Iranian government, who responded by shutting down internet access for several days, creating even more challenges in verifying the extent of the unrest. Last week, President Hassan Rouhani blamed the protests on ‘foreign meddling’ and said his government had successfully pacified demonstrators, although videos on social media showed this not to be true.
EUROPE House where Hitler was born to be turned into police station The house in which Adolf Hitler was born is set to be turned into a police station in a bid to stop it becoming a pilgrimage site for neoNazis, the Austrian government says. The building, located in the north-western Austrian town of Braunau am Inn, was forcibly acquired by the Austrian government in 2017. The Interior Ministry noted that they received “special legal authorization” to expropriate the property, and paid compensation amounting to €812,000 ($898,389) to its former owner. The Austrian government is set to hold an EU-wide architectural competition to redesign the building, the Interior Ministry said. A winner of the competition is expected to be announced in the first half of 2020.
The operation was named Black Shadows, and was carried out by anti-terrorism and antimafia police after two years of investigations. Searches across the country, from Milan to Sicily, in relation to the investigation have led to seized weapons including rifles and swords. The target was the self-styled Italian National Socialist Workers’ Party. The number of arrests made is not clear. Monitors say anti-Semitic attacks and neoNazi activity are rising in the country. EU net migration to the UK falls to lowest level since 2003 EU net migration to the UK has fallen to its lowest level for 16 years, ONS figures show. The difference between how many people from the EU came to the UK for at least 12 months and how many have left dropped to 48,000 - the lowest level since 2003. The ONS says this was down to fewer people coming to Britain for work, whilst a record high also returned home. The number of people arriving from the EU now stands at its lowest level since the year ending March 2013, according to the figures published by the Office for National Statistics. There has also been a steady rise in the number of EU citizens returning home - 151,000 emigrated in the past 12 months, double the number six years ago and the highest figure on record. EU net migration previously hit peak levels of more than 200,000 in 2015 and early 2016. Meanwhile, net migration from outside the EU has gradually increased for the past six years, as more non-EU citizens came to the UK to study, the ONS says.
Italian plot to create new Nazi party uncovered Italian police say they have uncovered a plot to form a new Nazi party. Officers raided the homes of 19 suspects. They also found Nazi flags and books on Hitler and Italian fascist leader Benito Mussolini. Endeavour Magazine | 11
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A CUP OF AFRICA Java House chevron-square-right javahouseafrica.com phone-square +254 709 283000, +254 709 283206
Coffee culture is a phenomenon the world over. America, Europe, Australia, the Middle East this culture is popular from nation to nation, and Kenya is no different. To celebrate its 20-year anniversary, we spoke with Paul Smith, the CEO of Java House, about how the top East African company has helped to shape the market and the face of coffee in Kenya.
Written by Alice Instone-Brewer
W
hilst coffee culture as we know it feels as though it’s been taking shape for the past few decades, the social tradition of gathering in coffeehouses can actually be traced back to Turkey in the 14th century. In the 17th and 18th centuries in Europe, coffeehouses were associated with intellectualism and the gathering of artists, and they hold a similar connotation now, forming popular spots for people to gather for social and business reasons alike, or to sit with a laptop working on that article or novel. Java House was created when its founders, Kevin Ashley and Jon Wag, couldn’t find a social space to relax and drink coffee in like this in Kenya. The gourmet coffee culture hadn’t yet become a widespread phenomenon in the country; you could buy the beverage, but that emphasis on specialist preparation and accompanying social space wasn’t there. To answer this need, the first Java House was opened in August 1999, in Adam’s Arcade, Nairobi, followed by a handful of others over the next few years. The company’s aim was to introduce and spread this culture through the country. After five years in business, it was taken over by a private equity firm, which led to a far more rapid expansion for Java. This period Endeavour Magazine | 13
JAVA HOUSE
of time also saw Java open its sibling brands, Planet Yoghurt, a healthy frozen yoghurt store, and 360 Degrees Pizza, a casual dining restaurant. As for Java House itself, the venue evolved over time from exclusively serving coffee to instead being a coffee-led casual dining experience, and a heavy emphasis is placed on the venue and the experience of visiting it. It may sound surprising, but the drinks are not the primary reason that people attend a coffee venue. As Paul shared with us, market research tends to come back with the quality of coffee ranking third or fourth amongst people’s reasons to choose a particular venue, with the leading factors instead being its atmosphere, its location and its customer service. “People like to come in, they like to sit down, they like to talk and have a nice environment to meet in. Java became the place to hang out with friends, and as a result of that, Java has grown.” Java House has also introduced kiosks and express
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14 | Endeavour Magazine
stores, to increase their diversity through the market, but it is their meeting spaces that set them apart and introduced the coffee house trend in Kenya in the way it exists today. Java isn’t losing sight of where it all began, though. Whilst the drinks themselves aren’t the leading factor behind people’s choice, that doesn’t mean Java has neglected them. Being able to trust in the quality of the coffee is still important to customers, and a matter of pride for Java. “In all of the coffees we make, we only sell to our customers Kenyan AA, which we carefully roast ourselves: it’s quite a bold coffee, and is probably one of the best coffees in the world. Two of the world’s leading coffee chains use it in their blends” Having worked with and tasted many coffees Paul stands by Java’s. Kenyan AA is an arabica coffee (as are all coffees that Java sells in its store.) For those that don’t know, arabica coffee is the superior species of coffee bean when it comes to flavor. The alternative, Robusta coffee, grows throughout the year and is easier to cultivate, but has a less complex flavor, whereas Arabica grows in more specific conditions, essentially in higher altitudes and only yields at certain times of year. For these reasons, Robusta coffee is generally a cheaper option, whereas Arabica is a sought-out mark of quality. Combining an attractive ambiance, casual dining and high-level, specialist coffee, it’s no wonder that Java House has been a success. Roughly three years ago, the brand expanded beyond Kenya to Uganda and Rwanda markets that are both growing - and its status in Kenya is secure. “I’d say Java is the most well-known African brand in Nairobi. We serve 20,000 customers a day, and they’re very loyal customers.” Currently, Java House employs two and a half thousand people, with close to 80 stores between the three countries it operates in. East Africa’s economy is slow at the moment, but, whilst many markets seem to be on the downswing, East Africa is slowly on the upswing. For this reason, Paul is extremely enthusiastic about the region as a place to grow – even with the challenging business conditions. “The
JAVA HOUSE
opportunity here is absolutely amazing – some of it is just disguised as an insolvable problem. You just have to understand how it works.” In fact, the market is healthy enough that Java House is starting to see competition: “There’s competition creeping in that is home-grown, and we’re starting to see global brands as well. The food scene in Kenya and Nairobi is growing, as is the coffee-led scene.” Regardless of competition, Java is keeping current and staying ahead. As it celebrates its 20-year anniversary, the company has reexamined its operations and undertaken a whole slate of changes, both customer-facing and behind the scenes. “We’ve spent a lot of time in the past two years remodeling ourselves and getting further fit for purpose, built around the great brand foundation we already have.” This examination has happened under Paul, who assumed the role of CEO two years ago, and who saw great untapped potential in many areas of the already successful brand. His aim
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has been to get every aspect of the company ready for growth, from its processes to its image. “We have a huge expansion strategy and clarity on where we’re going to go.” One of the biggest changes has been to Java House’s look. “We’ve been working with a design company in Singapore called Optimotto. They’re very good at looking at what a company stands, and designing for the future. They looked at our customers and what they wanted, so that we could future-proof the designs and environments for the business. In summary we have planned our present, from the future”, said Paul. “Our old colours were very dull, but Africa is full of colours and curves, so it makes sense to put that into our spaces. Our new look is a lot more colourful and African. The uniforms have changed to be more vibrant, and the menu itself changed to be more colourful and we’ve completely revamped our website.” The changes aren’t only aesthetic, either. Java
A CUP OF AFRICA
House has also improved its menu to give it greater range, whilst keeping the prices as level as possible and the portions as big, the way the African market likes them. These changes were all tested out as a new model branch in the Junction Mall in Nairobi, and they’ve been well received. Other celebrations of the anniversary have involved commemorative merchandise that’s available at Java House stores, and surprise offers such as selling all coffees for 20 cents for a day. However, the major announcements involve the launching of a new brand, and even the construction of a new factory. Last month, the company launched Kukito, a QSR brand that Paul described as “African and homegrown”. This newest brand has had such a good reception that it has already received nearimmediate franchising offers. Then, behind the scenes, there’s the factory. The Java Group already owned and operated a commissary that produced much
of the food they sell in store, but due to their planned expansion, this factory is set to be relocated, with a larger and more streamlined operation built to replace it. The footprint will expand from 4000 m² to 6,500m², with newly improved food safety standards, and the build is predicted to be ready by summer 2020. Java House aims to have reached 200 stores in the next five years, and it needs to grow its factory to support this expansion. However, the company is also growing the b2b side of its business, and needs to support this as well. “We are now exporting coffee to China, the Middle East, and we’re about to start exporting coffee into the UK. That factory is going to be a stand-alone factory; it will always be a key supplier to Java and other brands, but it should end up where it pays for itself. We have named it Foodscape” In terms of stores, Java House’s expansion is not only in its three current markets, but also potentially in Nigeria and Ethiopia. As for its Endeavour Magazine | 17
JAVA HOUSE
b2b business, it predicts that over the next five years, it should grow from accounting for 0.1% of Java House’s revenue to approximately 4%. Of course, to support this growth, the company is also growing its body of staff. An amazing testament to its company culture, the turnover of said staff is extremely low, especially for a company in the food service arena. “Our staff turnover is about 10%. In the food and beverages service industry across the world, it averages at 55%, so that’s some loyal people there and some great talent.” Paul was born in the UK, but he has lived all over the world, and still, he speaks passionately about Kenya and its quality of people. “The culture of Kenya is amazing. One of the things I came over here to do was to get this business world class, but the people of Kenya are already world class. They work harder than any place I’ve ever been, they have a commercialism about them, they’re energetic, they want to learn, they want to grow. It takes years to get that right in a lot of places, and we have it in spades here.” Paul seeks to reward
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this enthusiasm by encouraging his employees to develop as much as possible. A key part of this, for him, is supporting female employees who show a talent for management, and 65% of his store management team are female. In this, and across the board, the company seeks to encourage and empower its people: “Give people an opportunity to grow, and as long as they see that you’re going to be fair, honest and act with integrity, they’ll work and grow with you.” From its great people to its store designs and ambiance, to its coffee, and even the operations behind the scenes, Java House was a strong entity that has only become stronger. Paul believes firmly in its legacy: “Java, in the 20 years it’s been here, has put coffee and coffee culture on the map in East Africa.” Moving forwards, the company aims to continue building upon this legacy, and continuing to lead the way in the coffee house experience, far into the future. Java will move from being a great business to becoming a legendary business.
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THEY’VE GOT YOUR FEET COVERED Falke South Africa chevron-square-right https://falke.co.za phone-square 021 951 2137
Starting life as a small household business in Germany, 1895, Falke has now been overseen by four generations of its founding family. We spoke with Martin Grobbelaar, Group General Manager of Falke South Africa, about how the sock company is flourishing in the country and what it is that sets its products apart.
Written by Alice Instone-Brewer
C
hristmas-time is a time for socks. Between the frosty winter weather and the panic to think of gifts to give your loved ones, the chances are, there’ll be a pair of socks or two under the tree. When it comes to Falke, these would actually be a fantastic gift – whether they’re for sports or fashion (or both), the engineering and technology in a pair of Falke socks takes the product far further than one might think a simple sock can go. As we discovered when talking to Martin, socks aren’t so simple after all. “We believe the main thing that sets us apart is the quality of our product, in terms of the materials we use, and the technology and skills we have. We like to believe that’s superior to what anyone else offers.” ‘Athleisure’ seems to be more popular than ever. An interest in not only getting healthy, but looking great whilst doing it, is more in the public’s mind than ever before thanks to the impact of social media influencers, as well as a spreading education on the importance of fitness. In South Africa, Falke seeks to meet this market by providing socks that deliver on “fit, function and fashion”. In particular, the South African branch of Falke specialises in Endeavour Magazine | 21
FALKE SOUTH AFRICA
sports socks; it has focused on these for some decades, beginning with a general design that soon grew to become more advanced as the sports industry and the needs of consumers developed. Now, the company supplies a multitude of sport sock designs, varying in what they offer to make them the optimum fit for the type of sport in question, under the categories of running, cycling, outdoor, golf & racquet, team sports, and gym & leisure. “The active lifestyle has become very cool, so people want to dress appropriately. In our market, people spend a lot of time in their active-wear, so the sock needs to compliment the shoe and the rest of the outfit.” This applies to function as well as fashion – customers want to look good, and they also want their purchases to perform well: “People invest a lot of money into their footwear, and for us it’s about the marriage between the sock and the shoe. If you have an expensive shoe, you want a sock that helps you get the best out of it.”
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Whilst this is Falke South Africa’s main focus, however, it is not the entirety of its products. It also produces socks sold purely for fashion, and, using similar technology to their sports designs, it also engineers socks that are designed to help with medical issues. “The core driver for us is to offer solutions,” explained Martin. “We offer foot solutions for athletes, and also for people with issues such as diabetes or poor blood flow. We work closely with sports scientists and podiatrists to find solutions for whatever issues people might be having.” How much engineering can really go into a pair of socks? You would be surprised: Falke socks include some features you might expect, and some that hadn’t occurred to us at all. For example, their list of potential features and solutions includes details such as lightweight designs and a soft touch, for optimum performance and for comfort respectively. Then, there is a greater attention to detail, such as a reinforced heel and toe for durability, or a sensitive cuff around the ankle for comfort. Its socks offer either a seamless toe section, or a very fine seam, depending on the design, which is done to reduce blistering, and arch support is built in to improve the sock’s fit to the point of keeping it in place. These solutions are both extremely useful in a sock either for sports or hiking, as a shifting sock and rubbing seams can easily damage or irritate your feet. It doesn’t stop there. Martin told us that when it comes to the ‘fit’ part of the three Fs, “the sock needs to fit like a second skin”, and the company isn’t holding back on solutions. Some designs are even ergonomically fitted to the point of having a Left and Right sock. Then, when it comes to ‘function’, the socks can come with either heel and toe cushioning or full foot cushioning, both for comfort and support, and compression points to encourage good blood circulation. A mohair wool blend is used in some socks for thermo regulating, mesh panels for ventilation, and silver is even included in the yarn of some designs to assist in keeping the wearer odour-free. There is even a built-in insect protection for some pairs, which is odourless and lasts up to 30 washes. Lastly,
THEY’VE GOT YOUR FEET COVERED
some socks are reflective, to make sure joggers have visibility, and of course, Falke creates its socks with excellent wicking properties to keep your feet nice and dry. Basically – these aren’t ordinary socks! Knowing that there are so many properties in the mix, it’s less of a surprise that Falke sells its sports socks under so many categories. Not every feature is required for every sport, and in fact, some would be unhelpful or out of place. With such highly engineered solutions and such attention to detail, it is important to Falke that its customers buy the correct sock for their needs – if they don’t, they miss out on the full experience and ease that the company can offer them, and they miss out on just how clever these products are. In order to help people understand the importance of having the correct socks for the job, the company has therefore invested time and money into educating its market. In markets such as the US, consumers are already very aware of these
details, but in South Africa, this awareness is still being developed. Falke was founded by a German man of the same name in 1895. The small family business survived both World Wars, and today, its main shareholders are the founder’s great grandchildren and the company has operations in seven countries: Germany, Serbia, Slovakia, Italy, Portugal, Tunisia, and South Africa. Its South African operations began in 1974, creating yarns for carpets, as a part of the rich South African textiles industry at the time. The focus moved from this to socks, but the company faced difficulties when China joined the World Trade Organisation in 2001. Before this, there had been a limit on how many Eastern imports South Africa received, but after this, South African retailers suddenly had unlimited access to cheaper products from Eastern manufacturers. With these cheaper products flooding the market, companies like Falke needed to adapt fast; in Falke’s case, this
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FALKE SOUTH AFRICA
meant focusing in on unmistakable quality. This drove the push towards the highly researched, expertly designed, specialised socks the company offers today. “R&D is a constant focus,” Martin told us. “We have an R&D department of about ten people, and that’s all they do every day.” As well as creating the advanced socks we’ve discussed, this research has also yielded developments that have other applications. For example, Falke now sells underwear and sports bras that use the same wicking fibre technology to keep skin dry during workouts. These sales currently only account for 5% of Falke’s business and only includes a few products, but it is a direction in which the company could grow. In terms of growth, though, the main push is towards other markets. Even though Falke has operations in various countries, the South African branch itself is involved in the export business, selling the advanced sports attire it has developed. Martin was able to tell us about
24 | Endeavour Magazine
the main focuses for export right now: “We’ve recently gone into the Australian market, so we’re very excited about that – especially given the similarities in terms of lifestyle, and particularly when it comes to sports. It also provides challenges; we are a brand that Australia doesn’t know yet, so it’s still in its infancy stages.” “Exports to the US market have seen exponential growth in the past ten years, and we’re confident that that’s going to grow even further.” Exports in the US currently account for a vast 60% of Falke’s business. 25% of this is through online shopping, whilst the rest is through brick and mortar retail. In Australia, the plan is to sell mostly through e-commerce. “In Australia, the digital market space is very well developed, so an initial focus for us is to establish a digital space for our brand, but we are looking at some brick and mortar retail as well.” Given the spread-out nature of Australia, e-commerce is a sensible way to go. In contrast,
THEY’VE GOT YOUR FEET COVERED
in South Africa, the digital space accounts for hardly any of Falke’s local sales at all: “90% of our market is in established, brick and mortar retail in South Africa. The growth for our online business has also been very good, but online retail in South Africa is still very small. Compared to the US, where online retail accounts for around 20% of the total retail spend, in South Africa in 2018, as a country we were sitting at 1.7%. Digital commerce in South Africa will grow, though, and that’s been a key focus for us, to make sure that our business and supply chain is set up to grow with it. We don’t have a large company like Amazon here, but it will come, and we want to be ready.” Falke also has big news on the horizon in the R&D front. Martin couldn’t tell us everything, as its new product is still being developed, but it is hoping to release it early 2021. We asked Martin if he could share a teaser, and what he shared was a strong claim: “We’re in the process of developing the best running sock anybody’s
ever seen.” The running market is quickly on the rise, as there is such a low price-point to picking up the sport – all you need is yourself. That said, once people get into the sport, they want the right gear, and Falke want to provide it: “As the running market is growing exponentially, we want to offer them a product that no one has ever seen.” It’s an ambitious plan, and as Martin said to us, we’ll have to watch this space. In the meantime, Falke has already set a high bar with its products, but come 2021, we may see them raise it even higher.
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Endeavour Magazine | 25
AMAZING WORLD
HUMBUG ICEBERGS
by James Lapping ntarctica is an infamously vast, white been forming over a long period of time continent. There’s ice and snow, maybe hundreds, and even thousands of years have some penguins and seals, but that’s allowed these magnificent sites to be created. about it, right? One of the most uninhabitable They’re stunning and unmistakably festive, land masses on this earth may look bleak and but although the existence of these icebergs uninviting on the surface, but it is home to seems rather surreal, the way they are formed some hidden beauty. is surprisingly simple. If you were sailing the seas around the All icebergs begin life when large blocks coast of the Antarctic, you may stumble across of ice break off from a glacier, an ice shelf, or some miraculous icebergs. Humbug Icebergs. from a larger iceberg. When warm air melts We all know the traditional boiled sweet, and icebergs over time, the melted ice will gradually if you don’t, a humbug is a black and white, trickle down its side and into the sea, just like striped confectionary, also commonly known rain on a window. Sometimes, this process as an Everton mint. Amazingly, the icebergs creates straight crevices in the sides of the in question resemble these delicious sweets ice, and the ‘humbug’ stripes will then form in to a tee! these crevices. Humbug Icebergs stripes vary in Humbug Icebergs are few and far between, colour, and each colour is created differently. but at the same time, they are not as a Blue stripes will form on icebergs when rare a sight as you might think. Some have water freezes up again: if the water freezes so
A
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quickly that it doesn’t have bubbles in it, this creates the vivid blue colour. When a green stripe forms on the icebergs, this means that the water that has frozen was abundant with algae. Brown and yellow stripes are also very common, and these colours are created by sediment that is picked up by the water and ice when it gradually rolls down a hill as the iceberg is created. The melting and refreezing that creates these towering formations has been a natural occurrence over the last few thousand years. However, with the temperature of the earth gradually rising due to man-made change, this means more melting will occur, but the refreezing to create these magnificent stripes won’t. Instead, we may lose Humbug Icebergs, and normal icebergs too - forever! Not only is the ice around the Antarctic melting, but in
turn this is also causing the sea levels to rise, causing various other natural disasters around the world. It is paramount that we curb the rising temperatures of climate change, to ensure that the natural beauty found on Earth, such as Humbug Icebergs, is kept intact. It may be unlikely that you are going to take a trip around the Antarctic any time soon, but if you look at the photos accompanying this article, you will see how truly impressive these pieces of natural beauty are. Many of these take an enormous form, commonly reaching over 100ft in length and height. It is believed that the largest Humbug Iceberg stretched 551ft into the sky, as tall as a skyscraper! If you aren’t in awe of these incredible icebergs, then BAH HUMBUG!
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EXPERTS IN SULPHUR Enersul chevron-square-right www.enersul.com phone-square +1 (403) 253-5969
A material with countless applications, both commonly known and not so well understood, sulphur is a valuable resource that requires experienced hands to extract its full potential, such as those of the Enersul team.
Written by Amy Buxton
I
n a bid to fully understand the impact that sulphur has on day-to-day life and thus, why its effective manufacture and handling is not only critical but also a viable business model, Endeavour Magazine spoke with Hany El Gheriani, Director of Middle East Operations. Having been with Enersul for eight years, he has been privy to different roles, each of which provided opportunities to progress and in 2016, he was promoted to his current role and charged with ensuring client satisfaction, while also identifying new territories to move into. Acknowledging that the key to effective leadership lies in open communication with team members and an ability to impress upon them the importance of their specific roles, Hany is also cognisant of what drives success on a company-wide level: “Everyone and every company has a certain definition for success and that needs to be very clearly defined, before you set out to try and achieve it. To achieve success, you need to have a clear definition of what success looks like to you and then pursue it persistently, with integrity and respect.” Enersul, through considered diversification, has enjoyed success spanning six decades and now, stands tall as the “world’s leading choice Endeavour Magazine | 29
ENERSUL
for complete sulphur processing, handling, storage, and loading solutions”. Offering clients easy and reliable access to relevant equipment, technologies and operational services, the company aims to not only assist in the safe procurement and processing of sulphur, but to do so while being environmentally conscious as well. Not the easiest of tasks, but an essential one in today’s ethically motivated business world, where a company’s morals and green commitments can mean the difference between a lucrative new contract and losing out to a competitor. Having divided itself into two separate factions, Enersul has little in the way of concern when it comes to securing new clients and keeping existing ones happy. Hany explained more about the splitting of a global operation into two distinct divisions: “Enersul is all about sulphur. There are two business divisions; Enersul Technologies and Enersul Operations. Enersul Technologies is more or less a specialised full-service EPCM
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company that only works on projects that deal with liquid or solid sulphur. Enersul Operations is responsible for sulphur plant operations in Canada and overseas. There are three business models within this division. Enersul either owns and operates the facility or the client owns the facility and we operate on their behalf or we can provide operation support services, where we have more of an advisory role.” Though founded in Canada and still headquartered in Calgary, Alberta, Enersul operates on a worldwide platform, with particular focus on the Middle East, where Hany oversees things. Just how stable is the global marketplace though and has Enersul been witness to any significant changes, either positive or negative? Hany explained that in a similar vein to the oil and gas industry, sulphur has ebbs and flows and while 2019 proved to be very lucrative for the company, there is no excuse for simply wishing and hoping for a similar 2020. Profitability draws attention, which in turn, leads to an influx of competitors, but this is no bad thing. In fact, a little healthy competition encourages established industry leaders to always keep evolving and to consistently look for those impactful innovations that will keep them out in front. In short, it helps client favourites to keep their heads, integrity and their edge. Enersul has always strived to stand out for positive reasons and Hany explained what makes the company demonstrably special: “The biggest difference between Enersul and its competitors is that we are proudly the only company that not only sells their equipment, but also owns and operates its own facilities that have this equipment. Therefore, we have the operating experience to constantly improve our products and share our operations and maintenance knowledge with clients across the globe. This is not something that other companies in this industry can claim.” Supplying world-leading equipment and providing operational services to a range of global clients requires a reliable, steadfast and experienced team, led by a management structure that seeks to nurture talent and
ENERSUL
drive professional development. Enersul is in a unique position to be able to offer handson training, thanks to owning its own facilities and with a generous annual training budget in place, there are numerous opportunities for ambitious staff to progress and increase their knowledge bases, a desire that does not go unrewarded, as Enersul seeks to promote from within, wherever possible. Like any industry, sulphur has had its up and downs, as Hany expanded on: “One of the current challenges in this industry that everyone is talking about is the implementation of the IMO 2020 policy that comes into effect on January 1, 2020. This policy reduces the permissible amount of sulphur in fuel from 3.5 percent to 0.5 percent. This has forced refineries and transportation companies to upgrade or change their refinery/fleet configuration in order to comply. However, this has also led to more sulphur being processed which in turn,
created more project opportunities for other companies such as ours.” By retaining the ability to always seek out the potential, even in an industry-wide upheaval, Enersul has been able to consistently navigate turbulent times but there’s another key facet to forging ahead; a commitment to maintaining mutually beneficial and trustbased relationships with both suppliers and customers. The result has been a natural ability to better competitors project completion estimates, without compromising on quality of delivery. This has, in turn, led to an enviable 2019, as Hany confirmed: “Enersul has had a great year to date. We have secured multiple projects in various parts of the world including Bahrain, Canada, China, India, Kazakhstan and Thailand. Enersul has also introduced multiple new products including our next generation high capacity granulator, the GXM1 NexGen and an innovative, modular,
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EXPERTS IN SULPHUR
externally heated, sulphur re-melter, the MODEX.� Building on a positive year, Enersul has big plans for 2020. Despite already having a tangible global presence, improving the impact of said outreach is at the top of the business development priority list. Expanding into countries that have demonstrated incredible potential, such as Saudi Arabia, is definitely on the cards and there is also an exciting breakthrough into the fertiliser market to look forward to, thanks to Enersul’s enhanced GXM3 fertiliser blends. With more than 60 years of successful enterprise already under its belt, Enersul is showing no sign of slowing down, so while competitors will come and go, it seems a safe bet that Hany and his team will be at the top of the industry for many years to come.
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CHAMPIONING AFRICAN AVIATION AFRAA chevron-square-right https://afraa.org envelope-square afraa@afraa.org
With a vision of overseeing a network of sustainable, affordable and cooperative African airlines, the African Airlines Association is no stranger to thinking above and beyond and is looking to make inroads into more profitable operations for its members.
Written by Amy Buxton
T
he African Airlines Association (“AFRAA”) is a trade association that has sought to bring together airlines of the African Union, since 1968. The reason is simple; to serve, promote and improve the industry, while staying abreast of contemporary initiatives, such as sustainability and affordability, both of which have become significant factors for the aviation sector as a global whole. The importance of a functioning, profitable African airlines industry cannot be underestimated, as it has the potential to contribute significantly to the country’s economic stability. Speaking about the association’s members, Maureen Kahonge, Senior Manager of Business Development & Communications revealed that, “AFRAA is comprised of 44 airlines that cut across the entire continent, including all the major intercontinental African operators. The Association members represent over 85% of total international traffic carried by African airlines.” She went on to explain that outside investment was also welcomed, through a clever partnership programme: “Besides its membership programme, which is restricted to airlines registered and headquartered in any member State of the African Union, AFRAA Endeavour Magazine | 35
AFRAA
also has a partnership programme. The AFRAA partnership programme is open to all nonairline industry-related organisations, which are interested in the development of air transport in Africa.” There’s no doubt that aviation is an expensive industry to specialise in, so taking the step of welcoming partners aboard was a sensible business plan. The additional members contribute significantly to much needed resources and bring new expertise, relationships and opportunities for progress along with them, all of which is welcome, especially when remaining competitive in today’s marketplace is more important and difficult than ever. Despite boasting 18% of the world’s population, African air traffic accounts for just 3% of the sector, but there is hope. Figures show that traffic doubles every 15 years and AFRAA members will need to be ready to claim a larger portion of the action, but there are concerns to deal with now, as Maureen highlighted:
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“The main challenge for African airlines is the high cost of operations and most are losing money currently for each passenger carried, while global airlines are making profits. African airlines are overtaxed. The level of taxes and charges is high in Africa if you compare to the other regions worldwide. In intra Europe for example, you can fly 1.5 hours for less than $100 yet in Africa, the taxes range from $50 to $150. The consequence is higher ticket fares that are unaffordable for African citizens. This situation is a hindrance to air transport development in Africa.” With African governments continuing to place high taxes on air travel, ground service providers have no option but to charge commensurately. Add in fuel, which is rarely priced transparently and you have the makings for a genuinely untenable situation, minimal growth and unhappy customers. The answer is to improve airport infrastructure and significantly reduce fares and taxes, all of
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which the AFRAA is vehemently lobbying for, according to Maureen; “AFRAA is working with IATA and other stakeholders on a joint approach to coordinate and align strategies that will address the issue of high taxes and charges in Africa. Some of the strategies include: the establishment of economic regulators to ensure reasonable level of taxes and charges, the improvement of efficiencies by Air Navigation Service Providers to reduce navigation charges and the optimisation of fees and charges by airports to increase non-regulated revenues. As AFRAA, our three action pillars contributing actions are: lobbying and advocacy, joint projects and cooperation, studies and market intelligence” Through valuable industry relationships and the supporting of initiatives such as the Single African Air Transport Market, AFRAA is keen to make a tangible difference. Sharing opinions, experiences and best practices with similar associations around the world is of paramount
importance, but so is constant evolution. If you stay static for too long, potentially beneficial developments will simply pass you by, which is why AFRAA has sought to keep things moving. A flagship move has been the recent replacement of outdated mission, vision and strategic objectives, so as to better serve the 44 member airlines. Having welcomed five new airlines as members in 2019, the updated core values were a timely investment, as was the introduction of the AFRAA Aviation Consultancy Unit. Maureen explained what this has been designed for; “The objective is to support African airlines and to establish efficient and effective strategies that will help them gain leverage in the market. The Consultancy Unit will provide datadriven studies that are aimed to build winning strategies and business plans to achieve the airlines’ goals.” Part of a wider objective to become a recognised hub for all things aviation, this unit
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CHAMPIONING AFRICAN AVIATION
will allow African airlines to be at the forefront of industry developments, while working in accordance with proper governance and fair management. Maureen went on to announce another refresh as well: “The quarterly magazine of AFRAA was rebranded in 2019. The name changed from “Africa Wings” to, “African-Skies”. The magazine now carries a new look in line with the new strategic direction. This change goes hand in hand with our focus on continuous efforts to increase sustainability of African airlines, also embedded in our slogan, ‘Better skies for Africa’.” This might seem like a lot of change, all within the space of one year, but it’s important to remember how fast-paced the aviation industry actually is. Fully guided by the expectations, demands and budgets of customers, airlines need to stay at the top of their game if they are going to continue tempting new and frequent flyers to choose them as their carrier of
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Endeavour Magazine | 39
AFRAA
choice, which is why change is constant. From digitisation of services to new technology, fleet designs and operating standards, nothing stays the same for long and Maureen made it clear that AFRAA is aware of that fact. “As we expect more and more passengers in the years ahead, the industry needs to tackle the challenges related to its future expansion: safety, security, environment, infrastructure both on the ground and air, regulation, capacity building, market access and operational costs, among others. We launched a new action plan and set up a new organisation structure in 2018. The purpose is to better serve our members’ needs. We have also redefined our priorities.” At the top of the priorities list is safe, reliable air transport and to be an advocate, as well as a shining example of them, through its members, but coming a close second is the fight for a more fiscally sustainable industry. Advocating for lower taxes, cheaper fares and reduced ground support is a focal point for AFRAA, as it
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understands that this could be the final hurdle to letting African airlines take their place on the global stage. If the association wants “better skies for Africa”, it knows that change happens from the ground up and that’s exactly what Maureen and her colleagues are fighting for, every day.
AUTOMOTIVES
MODEL Y, TESLA
$39,000 We’re looking to the line-up of cars being promised to us in 2020, and when eying up what we want Santa to pre-order for us this Christmas, it’s hard for our eyes not to drift to the Model Y from Tesla. An all-electric, mid-size SUV, the Model Y is designed for maximum versatility and safety. Whilst some of Tesla’s previous offerings have been of the more sporty variety, the Model Y has plenty of space for seven adults to be seated comfortably, with storage space on top of that. This is practical family car, but one that just so happens to look sleek, gorgeous and bougie on top of that – not to mention its provision of a greener way to drive. SUVs tend to be fuel-guzzlers, and it’s hard to drive the whole family or crew around without adding to your carbon footprint, but in the Model Y, you have an attractive alternative.
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We are yet to try to Model Y, which is set to be released in Fall 2020, but we’re eying it longingly. According to Tesla, the vehicle’s highefficiency powertrain and ultra-responsive motors will provide 0-60 mph acceleration in as little as 3.5 seconds, with a top speed of up to 150 mph, and it advertises excellent handling on any road condition. That’s to been seen before it’s believed, but it’s a very promising claim that makes this car seem like a perfect solution to city driving whilst being suitable for longer drives and even a bit of a sporty feel. The Model Y will also come in Long Range, Dual-Motor All-Wheel Drive, and Performance models. The regular Model Y’s battery will have a range of 230 miles, where the Long Range will have up to 300. This isn’t a dramatic difference, but it’s enough to make an important impact on long distance drives. You definitely shouldn’t be easily caught out. Like other
Teslas, it is compatible with the company’s network of more than 12,000 Superchargers in 36 countries, which you can track using Tesla’s app to make sure your journey passes them when you’ll need to. Model Y is designed to be the safest mid-size SUV on the market. It has a low center of gravity, a rigid body structure and large crumple zones, all of which keep you extremely well protected. Inside, its panoramic glass roof and high has been designed to feel spacious (which helps when you’ve got seven passengers trying to get along for an entire journey!), and between the front trunk and split-folding second-row seat, you have 66 cubic feet of storage. All in all, it sounds fantastic, and we’ll be asking Santa whether we can get our greedy little hands on it to give it a test-spin next year. Watch this space, and in the meantime, check out the Model Y and all of the other gorgeous new cars being promised to us next year.
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46 | Endeavour Magazine
A FUTURE TO BANK ON AFDB chevron-square-right www.afdb.org phone-square +225 2026 3900
Tackling poverty is a hot topic right now, but taking things from discussion to tangible action can prove difficult, which is why organisations such as the African Development Bank Group stand out in their field.
Written by Amy Buxton
W
hen any professional group states that it has been founded upon a mission to “end poverty in all of its forms, everywhere”, it would be churlish to not take a closer look at how the members propose to fulfil their mandate. In the case of the African Development Bank Group (“AfDB”), this is just one of many ambitious humanitarian goals, as the group confirms: “The overarching objective of the African Development Bank (AfDB) Group is to spur sustainable economic development and social progress in its regional member countries, thus contributing to poverty reduction.” Founded in 1963, the AfDB had a clear mission from the start but improving the lives of all Africans is not a small task, hence the group is still in full operation today. Citing itself as a “regional multilateral development finance institution established to contribute to the economic development and social progress of African countries”, it comprises of three separate, expert organisations. The African Development bank, African development Fund and Nigeria Trust Fund have all joined forces with a vision of eradicating inequality and poverty. Endeavour Magazine | 47
AFDB
These are not mere flights of fancy, but realistic aims that can, the group feels, be realised through two operational elements. First comes the movement and allocation of valuable resources that can be used for significant investment into relevant regional member countries (RMC). By freeing up funding and making it easy to move, socioeconomic initiatives can be financed far more quickly and yield faster results. Second is a more expert and clerical option that sees the AfDB playing an advisory role, offering policy advice to interested parties and technical help when the need arises. Supporting the objectives of the group is a set of sustainable development goals, a list of 17 important goals that when combined, make for a very positive future. Covering everything from the elimination of poverty as a whole through to reducing inequality between countries, empowering all females and tackling climate change, the aims are not insignificant.
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Rather, they are a direct response to observable problems on the continent: “The AfDB’s primary objective is to assist African countries – individually and collectively - in their efforts to achieve economic development and social progress. To this end, the institution’s main challenge is to reduce poverty on the continent. Combating poverty is at the heart of the continent’s efforts to attain sustainable economic growth.” Thanks to being a large continent, Africa has been able to provide 54 RMCs, with a further 26 non-regional member countries also joining the group. While initially, membership was only open to regional countries, interest in investments from outside parties offered the potential for significant additional means, which the group was in need of and so, in 1982, the membership doors were opened a little wider. Enjoying access to more expertise, funding and better overall credibility, the AfDB has been able to finance projects of significant interest and impact: “The African Development Bank Group finances projects, programmes and studies in the areas of agriculture, health, education, public utilities, transport and telecommunications and the private sector. The Bank Group has, since 1968, also sought to finance non-project operations, including structural adjustment loans, policy-based reforms and various forms of technical assistance and policy advice. The AfDB Group has also widened the scope of its activities to cover new initiatives such as the New Partnership for Africa’s Development (NEPAD), water and sanitation as well as HIV/AIDS.” In addition, commitments have been made to align with initiatives that seek to greatly reduce the amount of debt being paid back within all RMCs. Thanks to being part of the Highly Indebted Poor Countries (HIPC) Initiative, the group has committed to cancelling close to US$9 billion of debt accrued by relevant countries. A huge undertaking, but one that will make a significant impact on the lives of ordinary Africans, as resources that were earmarked for debt payments can be reallocated into areas that need improvement;
A FUTURE TO BANK ON
clean water provisions, rural infrastructure improvements and agribusiness support being just a few. While looking at how to solve problems that have been created in the past is essential, the AfDB is always looking ahead. With the promise of a brighter future for Africa on the horizon, lessons need to be learnt from mistakes already made, to consolidate a stronger economy. The African Development Bank’s Acting Chief Economist and Vice-President for Economic Governance and Knowledge Management, Charles Lufumpa, confirmed this when talking about how younger generations of Africans need to get on board and directly contribute to Africa’s transformation: “A skilled and empowered youth workforce is a valuable asset that can help African economies accelerate the momentum of their structural transformation and economic development. We want them to raise their voices, interact with policymakers, private sector actors including multinational firms such as Safaricom, Microsoft, MasterCard, and LinkedIn, as well as development practitioners such as UNESCO, the ILO, the Bill and Melinda Gates Foundation and the Rockefeller
Foundation to share their thoughts on jobs, entrepreneurship and capacity development.” As part of the AfDB, the African Development Bank has taken the lead in terms of encouraging a younger group of developmental participants with its Jobs for Youth in Africa strategy, a 10year effort that contributes necessary funding to businesses that can upskill their young workers. The ultimate aim is to create 25 million jobs and make a positive impact on 50 million younger workers by the end of the project, scheduled for 2025. The AfDB is a multifaceted operation. Taking control of problems that have arisen from economy mishandling in the past, while also looking ahead and identifying the generations that can and will make the most significant changes, it is making impressive progress in terms of its mission to end poverty once and for all. Through fruitful subscriptions from both regional and non-regional countries and making savvy investments in initiatives that promise good return, whether educational or socioeconomical, real change is starting to happen in Africa and, come 2025, it will be interesting to see the results.
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A CLEAR VISION Lesotho Chamber of Mines
The diamond mining industry has always been known as a high-risk sector, but the promise of equally large rewards makes it a tempting prospect nonetheless, but only a few will profit, grow and be able to ride the waves of uncertain financial times, as Storm Mountain Diamonds understands only too well.
Written by Amy Buxton
S
peaking with Mohale Ralikariki, CEO of Storm Mountain Diamonds (“SMD”) and, more pertinently, Chairperson of the Lesotho Chamber of Mines, it appears that there is little in the way of glitz or glamour involved in the mining of precious stones. Instead, there is strict legislation, ever-changing procedural guidelines and fluctuating prices that can devalue hauls within the blink of an eye and yet, SMD continues to chip away and manage to turn a profit where others might have given up years ago. “Storm Mountain Diamonds operates a diamond mine in the Kao area of the Botha Bothe District in Lesotho,” Ralikariki told us. “SMD is jointly owned by Namakwa Diamonds Limited and the Government of Lesotho. The diamond resource that SMD mines at Kao is the largest kimberlite pipe in Lesotho. SMD entered commercial production stage in March 2012 and has a remaining life of mine of +20 years. The operations are conventional open pit mining, with drilling and blasting, loading and hauling. The recovered diamonds are sold in Antwerp on tender basis to a variety of rough diamond buyers including investors, traders and manufacturers.” Endeavour Magazine | 51
LESOTHO CHAMBER OF MINES
It might seem as though the team has whittled things down to a productive and streamlined system and while that is true, on an operational level, being cognisant of external changes, legal policies and competition is vital. By focussing on just one location, it has certainly proved easier to stay on top of potential upheavals and there are signs of impressive industry growth. Just 10 years ago, there was only one mine being worked in Lesotho, at full production capacity, but skip forward to today and there are four, with a fifth potentially opening soon. Two are reported to have significantly increased production, demonstrating favourable market conditions and potential for large-scale growth, but Ralikariki remains professionally cautious. In his role as Chairperson of the Lesotho Chamber of Mine, he not only needs to be aware of how many mines are in operation; he needs to have an understanding of how they are impacting the wider industry and vice versa:
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“The mining sector in Lesotho is nascent and vastly growing, however, there are serious challenges faced by the industry, from declining rough diamond prices to uncertainty caused by the proposed national legislative changes with provisions that are detrimental to the industry and that will definitely impact the profitability and possibly existence of most of these operating mines.” Rough stone prices are determined elsewhere and remains an issue that is out of the hands of suppliers, but legislative changes could prove most damaging to SMD. Naturally, Ralikariki will be supportive of initiatives that increase safety, mine longevity and industry stability, but he is also acutely aware that such focus points can create enormous shifts in operating policies and, in turn, some companies might have no option but to fold. Staying informed but not running scared, SMD continues to mine efficiently and has set about becoming a pillar of responsible operation. Efforts have paid off, as it has garnered itself an enviable reputation as both a mining operation and an employer. Ralikariki explained what he thought made SMD so different from competitors: “The committed and high-risk taking character of its investors, visionary management and dedicated employees have all made it possible for the mine to continue operating during these challenging times. The management team focus on operational efficiencies and sound cost management practices to optimise the ore body and ultimately, to remain competitive.” For some, growth is the only key indicator of success, but for others, staying afloat is just as much of a win. With the luxury of a little more breathing space and the ability to sit back and objectively assess a situation, SMD’s executive team was able to identify that efficiency was key, alongside tight fiscal control and minimised risk and to achieve the latter, it had to be sure that every individual working under the SMD umbrella is trustworthy, committed and has developmental potential. Including contractors, SMD currently employs 755 people at the Kao Mine and Ralikariki knows their value, saying that, “our
www.bathopelemine.net +26 658 56 9241 info@bathopelemine.net
African precious stones
People first™ Launched 2013 with the interest to explore, prospect and mine the precious stones of Africa at a business core, our mine supports the tourism and government sector of Lesotho in economic and social transformation. As a Diamond Mine African Group with various interests in various commodities we continuously plan to seek more investments and open opportunities within the Sadac region and international countries.
LESOTHO CHAMBER OF MINES
people are our diamonds”. As a company, there is a definite ‘attract, retain and develop’ culture in place and it all starts by identifying those with discernible potential and talent. Exemplifying company values and representing the culture of SMD perfectly is a prerequisite in every role, from top to bottom and in return for loyal dedication, employees can look forward to their talents being nurtured, their efforts being rewarded and their potential being realised, through leadership development programmes and training. It’s an attractive proposition for hardworking individuals looking for a career in South Africa, but the benefits work both ways. By entering into a reciprocal relationship, SMD and its employees all prosper and with no concerns as to staff retention, Ralikariki and his colleagues can turn their attention to forging other valuable relationships, as he explained: “Our success couldn’t have been possible if it was not for the great support we continue enjoying from our business partner and
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regulator, which is the government. Our subcontracted companies and suppliers of goods and services to Kao Mine continue contributing significantly to our success and operational achievements. We further attribute our success to our hardworking sales and marketing agents who always ensure that our product reaches the buyers and we get competitive returns.” The mining industry is extremely dynamic and complex, lending itself to unusual challenges and the need for strong, decisive leadership at every stage. Bringing his experience as the former Commissioner of Mines and current Chairperson of the Lesotho Chamber of Mines, Ralikariki has a level of industry understanding that cannot be questioned and a positive outlook that is uplifting and energising, despite some testing times ahead: “The company currently has to deal with a cycle of low diamond prices. There are always improvements and new ideas arising and SMD
A CLEAR VISION
will ensure that it explores some of these. The company has managed to expand its processing capacity by more than 40% over the past five years and will continue to look for further opportunities to expand.” With Ralikariki’s leadership, the dedication of SMD’s team and its history of sound business, we have no doubt that this expansion will continue to yield profitable results. We look forward to watching how SMD, and the entire mining industry of Lesotho, evolves over time.
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DOMINATING THE MARKET Hindustan Zinc chevron-square-right v phone-square +91 294-6604000-02
A subsidiary of Vedanta Limited, a global natural resources company, Hindustan Zinc is one of the world’s leading zinc producers. We took a look at the company’s impressive portfolio, and the ways in which it is aiding and safeguarding the communities and environment it operates in.
Written by Alice Instone-Brewer
H
industan Zinc has a lot of claims to fame: amongst others, it operates the second largest zinc mine in the world, and the largest in India. Not only this, its operations are ranked globally as the 5th most sustainable in the field of metals and mining, according to the Dow Jones Sustainability Index. As a company, it has been in operation for over 50 years, and in that time the Vedanta Limited subsidiary has evidently risen to the top of its field, both in output and in clean conduct. Despite its name, Zinc is not the only resource that Hindustan mines. It also deals in silver, lead and sulphuric acid, and it is excelling in some of these areas, too. For example, the company is amongst the world’s top 10 silver producers, with an annual capacity of 600 MT. In total, it currently operates five live mines, all located in Rajasthan, northwest India: all five of these focus on zinc, but also mine and deal with the other metals and mineral resources that are found, hence its presence in these other markets. Currently, its collective reserves for these resources sit at 305.6 million MT. However, zinc is its main pride and joy. In total across its five mines, the company has a reserve base of 105.7 million MT of the metal, with an average zinc-lead grade of 10.5%. This Endeavour Magazine | 57
HINDUSTAN ZINC
collection of sites has a predicted mine-life of over 25 years, which is fantastic news for the country’s zinc market, as the company holds an incredible 78% market share of this industry within India. What does India use its zinc for? 70% of it is used for galvanizing steel. Galvanized steel makes it far hardier and able to withstand the elements, including moderately corrosive environments, which means this form of steel is used in car production, and this use is on the rise in the country. It is also used in industrial alloys and die cast alloys – a use which is again on the rise, thanks to new IS277 coating standards. Between these two uses, zinc has been key in the government-supported construction push happening in Indian infrastructure right now, including projects such as the recent investment in metro rails, Smart Cities and Swachh Bharat Abhiyaan (the Clean India Mission). Lastly, zinc has many uses within India’s pharmaceutical sector, providing a range of benefits that means it is used to treat poor eyesight, respiratory infections, acne, agerelated diseases and even the common cold. As for Hindustan’s other products, as well as coins, jewellery and cutlery/crockery, silver has industrial applications, too. Its highest use is in
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industrial fabrication, and it is also essential in technology such as solar power, which makes it an essential metal as India, and the world, moves deeper into the use of renewable energy. It is also used in the construction on engines, batteries, some detergents, 3D Printing and vehicle construction. Lead, too, is used in the automotive industry (in the batteries), is used in construction for roofing and cladding, and can even been used as a coolant for nuclear reactors! Finally, sulphuric acid is also industryessential, this time in the production of other chemicals. Any metal you could mine has a plethora of uses, but Hindustan has many resources available to it, and also extremely useful in a country that is pushing and growing its construction and industrial output. The India IT industry is on the rise, as is its construction of renewable energy plants, public transport and green cities. So, with such a solid and healthy slate of reserves, and a market such as this, Hindustan is sitting in a very enviable position indeed. As well as its five lead-focused mines, Hindustan’s operations also include one rock phosphate mine, four hydrometallurgical zinc smelters, two lead smelters, one pyro metallurgical lead-zinc smelter, and a number of sulphuric acid and captive power plants. All of this is based in Rajasthan, in Rampura Agucha, Chanderiya, Dariba, Kayad and Zawar, apart from one zinc-lead refinery and a silver refinery at Pantnagar, Uttarakhand. In total, all of this gives Hindustan a production capacity of 834,000 MT for zinc and 201,000 MT for lead. In total, of its combined metals, Hindustan currently produces around 1.2 million MT per annum. Over the course of 2020, the company aims to raise this total to 1.35 million MT, whilst it aims to raise its ore production capacity from 17.7 million MT to 20.4 million MT. Over the years, Hindustan’s operations have transitioned from being predominantly above ground, in open cast mines, to now being completely underground. In 2018, the company completed and closed
HINDUSTAN ZINC
its operations at its Rampura Agucha open cast mine, which was its final above ground operation. Transitioning from above ground work to fully underground work is a challenging shift – one that requires attention to detail, the correct expertise on the team and the wisdom to see gaps in this expertise that need filling, and the careful training and support of all staff. However, as we all know, it isn’t just internal support that is essential from a mining company – outward support to the local community is also extremely important. Hindustan’s CSR programmes reach out to over 500,000 rural and tribal people throughout Rajasthan. These programmes include investment into education, health, water and sanitation, security, sports and culture, women’s empowerment and the establishing of sustainable livelihoods for after the mines close. This outreach isn’t just going to one or two communities – there are an incredible 184 villages around Hindustan’s operations. Through its programmes,
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Hindustan attempts to facilitate cooperation between these groups and local businesses, government, NGOs and academic institutions to work together towards a better future for these communities. The environment is also a cause for careful practices. In Hindustan Zinc’s words, “With more than 50 years of operational experience, we give highest priority to the safety of our people and the conservation of scarce natural resources through technology and innovation.” Working closely with its partners, stakeholders and shareholders, Hindustan, and even more predominantly, its parent company Vedanta, has numerous policies in place to manage its water, waste, energy, air emissions and the protection of local biodiversity.A strong example of this in action is Hindustan’s investment into renewable power: as well as solar power and green waste, it has invested heavily in wind power, to the point where Vedanta, a globally diversified natural resources company, is one of
DOMINATING THE MARKET
the leading wind power producers in India. In total, it has established 273.5 MW wind farms across five states: 88.8MW in Gujarat, 49.4 MW in Karnataka, 88.8 MW in Rajasthan, 25.5 MW in Maharashtra and 21 MW in Tamil Nadu. Hindustan Zinc sits in an extremely secure position in its market, with a rich series of operational mines and a market that has many uses for all of the resources they yield. Given this position, it is good to see both Hindustan and Vedanta putting effort towards sustainability and care for the communities the mines affect – impact that will continue on long after the mines themselves are no more. Mineral resources are finite, but the impact of mining them lives on, whether positive or negative, so it is uplifting to see mines like Hindustan taking care to create positivity in their communities, mitigate the damage they do, and invest in other technologies that will help the world work towards a cleaner future.
We offer a comprehensive portfolio of mining equipment as well as digital solutions to drive efficiency and productivity for our customers. Products like Certiq, Mobilaris, Teleremote operation and battery products are already market leading in the global market and helps our customers increase their safety and profitability. We have now gone one step further launching 6th Sense services to optimize system integration and connect processes, people and equipment for optimum productivity.
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AMAZING WORLD
A SAILING STONE GATHERS NO MOSS
by David Kimberley n California’s Death Valley National Park an extraterrestrial visiting Earth just to move a in 1915, a prospector named Joseph Crook few stones around a desolate plain was quickly visited the dried lakebed of Racetrack Playa snuffed out. and stumbled upon scores of boulders that It took a NASA scientist named Ralph had apparently moved across the surface, Lorenz to solve the mystery in 2006 and prove leaving very obvious trails. With some boulders just what was happening to the rocks when weighing in excess of 300kg, and having moved nobody was looking. The phenomenon behind as far as 250m, it was a perplexing sight that the sailing stones was something labelled ‘ice would warrant further scientific research to shove’. In winter, Racetrack Playa fills with determine just how this had occurred. water and the stones in the lakebed become Known as Sailing Stones, this phenomenon encased in ice. Thanks to the buoyancy of ice, was also observed at Little Bonnie Claire even a light breeze can send these boulders Playa in Nevada; rocks seemingly moving and ‘sailing’ across the mud at the bottom of the inscribing tracks in the smooth sandy ground lake. Those with a rough bottom edge leave without any human interaction. It further straight tracks, while those with a smooth confused scientists to find that some trails were edge drift. When the warmer months melt the perfectly curved while others seemed to have ice, the water evaporates and leaves only the moved in a straight line with sudden shifts to stones and their trails. the left or right. It was found that the rocks can be shoved at Many theories were thrown out initially. speeds of up to 5m per minute, leaving tracks Was it down to magnetic fields, dust devils of various lengths depending on the size and or was it simply a bizarre prank? Even alien weight of the respective boulder. Some smaller intervention was mentioned, but the idea of stones turn as they drift, which causes stranger
I
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trails in their wake. Rocks that start next to one another may travel parallel before one changes direction and heads off left, right or even backwards. Lorenz stated that there were a number of conditions that would encourage the sailing stones to move in this way; a natural recipe if you will. Take a flooded surface and thin layer of clay in the bed, add wind and ice floes, then finish off with warming temperatures to remove ice and water. The study of the sailing stones began shortly after being discovered by Crook, and yet it took 91 years to finally determine the cause. In August 2014, scientists published a time-lapse video of the rocks moving to wrap up their findings and present to the world. Aided by GPS, they documented the movement of some 60 different rocks between the start of December 2013 and end of January 2014. This study proved that the stones were not moving on ‘ice rafts’ as theorized previously and the term ‘ice shove’ came
into existence to describe what was actually happening. Whilst satisfied with their results, the scientists had solved one of nature’s great mysteries and there was to be no more wondering and theorizing to be had. In a way, it is sad that natural phenomena such as the sailing stones have to be analyzed so, as the mystery is what keeps the imagination hooked. In 1952, a park ranger named Louis Kirk recorded his own detailed observations of the stones, including their trail length, width and course. His intention was never to explain the reason behind them. It was simply to investigate and feed his own curiosity. Despite the mystery being explained, it is still an amazing feat of nature when considering that the right ingredients must be in place for a stone to sail, and a unique sight for visitors to the Racetrack Playa or Little Bonnie Claire Playa.
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BACK IN THE AIR Ethiopian Airlines chevron-square-right www.ethiopianairlines.com phone-square +251 116 179900
Ethiopian Airlines’ name has been in the media a lot lately, but not always happily so. Shortly after the famous Boeing crash in March, we caught up with the company to see how it was responding. Now, as 2019 comes to an end, we returned and spoke with Tewolde GebreMariam, Group CEO of Ethiopian Airlines, to see what was new for the company, and why this is still an airline of importance.
Written by Alice Instone-Brewer
E
thiopian Airlines (Ethiopian) has been in operation for 73 years, and in that time, it has become one of the continent’s leading carriers, unrivalled in efficiency and operational success. It works in close collaboration with a number of entities, providing passenger and cargo services to 125 destinations around the world. The organisations it works with include not only other airlines and businesses, but governments and NGOs. These connections are testaments to the high esteem that the pan-African airline is held in. The Ethiopian Airlines Group is the largest aviation group in Africa, and a SKYTRAX certified four-star global airline. It has a history of being known for its efficiency and, above all else, safety, and this reputation was well earnt. However, more recently, its name has been heard in connection with a great tragedy. On March 10th, an Ethiopian Airlines flight crashed only six minutes after take-off from Addis Ababa, the Ethiopian capital, in clear weather conditions. Tragically, all 157 people aboard the Boeing 737 MAX 8s were killed. This incident has been well reported on since, and we even spoke with Ethiopian Airlines earlier this year to talk about the crash. The fault for the event has been found to lie squarely Endeavour Magazine | 65
ETHIOPIAN AIRLINES
with Boeing, whose 737 MAX 8s had been engineered with faulty sensors. Yet, this does not mean that Ethiopian was unaffected, both emotionally, in terms of publicity and, most severely, through the loss of members of its team. Even though the airline wasn’t directly at fault, it still reached out to the families of those affected and sent them compensation. It was a difficult time for all involved, and for an airline, a high-profile disaster like this is both tragic, disheartening, and a dark cloud of concern for business. Still, the company will not let this incident dishearten its commitment to the standards that have previously set it apart and ahead in the continent. This reputation still stands true; the Group received the African Champion of the Year Award at the CEO forum event held in Kigali, showing the high esteem that the airline is still held in, and deservedly so. Other recent acknowledgements have included its CEO’s induction into the African CEO’s Hall of Fame during the African Leadership Magazine’s Persons of the Year ceremony, and an acknowledgement received from the global civil society, Most Influential People of African Descent. 66 | Endeavour Magazine
The Ethiopian fleet includes aircraft that Tewolde described as “ultra-modern and environmentally friendly, such as Airbus A350, Boeing 787-8, Boeing 787-9, Boeing 777-300ER, Boeing 777-200LR, Boeing 777-200 Freighter, and the Bombardier Q-400 double cabin. This modern fleet is kept young, with the average age of aircraft coming in at five years. Not only is it young, but it was first-wave, as Ethiopian was the first airline in Africa to operate any of these aircraft. As a Group, Ethiopian is currently working towards its Vision 2025 plan, a 15-year strategy that began in 2010. This plan seeks to promote Ethiopian as the African leader in not only its airline, but all six of its business centres: Ethiopian International Services; Ethiopian Cargo & Logistics Services; Ethiopian MRO Services; Ethiopian Aviation Academy; Ethiopian ADD Hub Ground Services and Ethiopian Airports Services. Many of these are already enjoying continent-wide success. For example, Ethiopian Cargo & Logistics Services is Africa’s largest cargo operator, and was recently awarded ‘African Cargo Airline of the Year’ and ‘Air Cargo Brand of the Year in Africa’ for the fourth year in a row at the STAT Times International Awards for Excellence in Air Cargo. Working towards this vision has seen Ethiopian become the fastest-growing airline in the whole of Africa, registering an average growth of 25% in the past eight years. Of course, Ethiopian’s key asset continues to be its staff, and the group knows it. Its Human Resources Development plan is one of the four major pillars of Vision 2025. Currently, the company employs over 16,000 people, and all of these staff require training in order to perform their roles to a standard of excellence. Much of this training takes place at the Ethiopian Aviation Academy. This Academy has operated since the 1960s and continues to be one of Ethiopian’s key business centres. The group had continuously invested in the growth and efficiency of the Academy, meaning that today, it is the largest and most modern aviation academy in Africa. “Today”, Tewolde told us, “The Academy is the largest aviation training centre in the continent, with a capacity
ETHIOPIAN AIRLINES
to accommodate 4,000 trainees per annum in all major aviation areas.” Over only the last few years, the Group has invested over $100 million in the Academy, and its development continues: “We aim to multiply trained aviation professionals across the African continent. Our state-of-the-art aviation academy has been built to create best African aviators for Africa. We invite all to come, learn and become an aviation expert.” In addition to training aviation skills to new and developing personnel in its Academy, both to future members of staff and individuals who will work elsewhere, Ethiopian Airlines also places great importance on training its staff for managerial positions, and promotes from within wherever possible. This highly motivated and well-trained team faces many challenges, however. Aviation operations have become more expensive in Africa than they are elsewhere in the world, including high jet fuel price, ground handling costs, taxes and airport charges. On top of these challenges, restrictions in some African countries mean that Ethiopian is not able to expand as it would like. Furthermore, the Single African Air Transport Market initiative is still in its development stages. Tewolde has been with Ethiopian Airlines for over 35 years, during which time he has worked in various roles in the cargo traffic handling department, which eventually led to him becoming the manager of that department. From there, he worked his way up, via roles that sent him from location to location, including Regional Director for India and South East Asia, Area Manager for Saudi Arabia and Area Sales Manager for North East USA and Canada. His roles later included Executive Officer of Marketing & Sales and, lastly, COO, before finally assuming his role as Group CEO in 2011. This full and active career within the airline has given Tewolde an insight into the company’s operations from the ground up, and in a number of countries, which puts him in a fantastic position to lead the Group with wisdom and personal experience. With this experience behind him, we asked Tewolde what he felt was the key to leadership, 68 | Endeavour Magazine
especially in a company that is so successful and yet has, recently, gone through such a hardship: “Effective leadership is all about motivating and rallying a team towards a clearly defined vision. I believe that hard work lies at the heart of success. There is no substitute or short cut to success other than working hard to achieve your goals.” Given the success of the Vision 2025 strategy, Tewolde has plans to implement a similar level of ambitious focus again once this goalpost is met. “We will soon unveil a new strategic roadmap, Vision 2035, which aims to scale up the growth we have been achieving so far substantially. The plan will not have much of strategic or business model change, but it will be by and large scaling-up our fast, profitable and sustainable growth strategy that we have achieved in Vision 2025.” The company continues to be confident in its vision and systems, and is working diligently towards its 2025 Vision without letting a trying year throw it off course. With over 70 years’ experience behind it, and the challenges of this year faced with strength and compassion, it seems certain that the company will rise triumphant.
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LIFTING NIGERIA PETAN chevron-square-right www.petan.org phone-square +234 84 461 178
The Petroleum Technology Association of Nigeria (PETAN) guides, oversees and represents companies who offer technical services to the oil and gas industry. We took a look at why they’re championing local talent, and why the protection of these companies is intrinsic to elevating Nigerian business.
Written by Alice Instone-Brewer
W
e have spoken to many associations over the years, from different industry sectors all over the world. The core lessons from them all is the same – that people are stronger together than apart, and it is important to feel represented and know that you have a voice. Communication is the key to success, and these associations serve to go between the companies in their sector, and organisations such as governments and other groups of interest who could impact the area they work in, but don’t know the ins and outs in the same detail. It’s a job that prevents much miscommunication and confusion, and one that helps all parties to work together to the betterment of industrial sectors whilst working in line with the needs of the country. One such association is PETAN – the Petroleum Technology Association of Nigeria. This association represents, in its own words, “Nigerian indigenous technical oilfield service companies”, from both the upstream and downstream sectors. In short, it represents the Nigerian oil and gas industry, and was formed the with specific aim to bring together Nigerian entrepreneurs in this sector, to create a hub of communication and support. PETAN is a platform upon which these entrepreneurs Endeavour Magazine | 71
PETAN
can exchange ideas, both with each other and, through the association, with other relevant companies and, most significantly, policy makers that can impact their business. The oil and gas industry receives plenty of scrutiny, and there is pressure to correctly regulate the operations within this sector in order to reduce pollution and protect our planet. Whilst this is extremely important, the process is not helped if the policy makers in question do not understand the technical side of the industry they’re regulating, what is and isn’t possible, and have no-one to consult. Through groups like PETAN, instead of being at odds, both sides can, in an ideal world, work together in a way that functions for everyone. This process protects the interests on both sides and protects against issues such as hits to the economy if the industry is given restrictions that aren’t functional. PETAN is led by a Board of Executives that is, in turn, advised by a Board of Trustees that is selected from ex-executives and other senior
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industry leaders in the field. The association says of itself, “We are initiators of local content in Nigeria and have been championing the quest for increased local participation in the Nigerian Oil & Gas industry.” It’s true: as well as their back and forth between companies and third parties, PETAN also provides other benefits to its members. For example, it arranges for Nigerian companies to have access to global platforms upon which to showcase themselves and represent what the country is capable of. These opportunities are usually at international conferences and exhibitions, including the Offshore Technology Conference (OTC). This conference was set up to showcase the latest technology in the oil and gas sector – more specifically, the latest in offshore drilling, exploration, production, and environmental protection. Access to this sort of event, which is held in Houston, Texas and is the world’s leading conference of its kind, is a fantastic opportunity for Nigerian companies who want to put their name onto the global stage. PETAN has been solely responsible for getting Nigerian companies into the OTC, which it first made possible in 2005. PETAN also arranges Nigerian involvement in seminars and workshops, and other opportunities for its local entrepreneurs to exchange ideas with global experts, all in the aim of furthering local industry. Furthering Nigerian professionals is the aim of every PETAN company, too. Between them and their contractors, they collectively employ over 20,000 Nigerians, 60% of whom are graduates. PETAN membership is open to all indigenous companies in the technical oil and gas services who meet the criteria, which are as follows: a company’s staff must be 95% Nigerian; the majority of technical management must be Nigerian; the company must have a Nigerian citizen as its MD or CEO; and the company’s equity holding must be 100% Nigerian, or must be at least 60%, with a three-year plan for the acquisition of the rest to take place. Whilst all of this sounds exclusionary to non-Nigerians, what is does is seek to uplift the country by encouraging the companies in this heavy, profitable industry to hire locally, rather than bring in employees from overseas.
LIFTING NIGERIA
As the association says, “We wish to promote the domestication of petroleum technology by striving for fair and extensive patronage of efficient and competitive indigenous Nigerian Oilfield Service companies.” Currently, the oil and gas industry is dominated by international players, which leaves less room in this space for local companies to rise up and make the most of the natural resources in their country. When equipment companies from Europe, and oil and gas moguls from America and the Middle East, come in and fill the space in the market, it reduces the opportunities available to local business people: this is why there is such emphasis on the words “Nigerian” and “entrepreneur” in everything PETAN does. Its focus on local skills and local business is to protect, foster and nurture the industry for the country hosting it. The natural resources are Nigerian, so it’s only right that Nigerians are able to form successful service companies to support this industry and feed back into the country’s economy through it.
PETAN currently has 80 member companies within Nigeria. These members make an average annual revenue of $500 million, which goes to show that PETAN’s efforts are working. Its protection isn’t just towards local business, though, but towards Nigeria in general – to this end, it emphasises CSR and environmental responsibility to its members – especially initiatives that help the local community in the same ways PETAN seeks to help local business. “We believe in adopting responsible business practices that create positive change in society. We wish to contribute to the community in which we operate in a meaningful and positive way.” All in all, PETAN is looking to guard local interests, not just so ‘the rich can get richer’, as one might be tempted to think when looking at an oil and gas based association, but so that growing companies have the change to establish and prove themselves in a market filled with international competition. That’s a cause worth fighting for.
ggiinternational.com
Endeavour Magazine | 73
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