Africa Industry Magazine Issue 02

AFRICA

ISSUE 02 africaindustrymagazine.com

INDUSTRY MAGAZINE

Celebrates 65 years in the African oil industry

SPAR

SWAKOP URANIUM

NIGERDOCK NIGERIA PLC

ALSO FEATURED: ATLAS COPCO | ASTRA INDUSTRIES | BROADBAND IN AFRICA | JOHANNESBURG WATER NAMPAK BEVCAN | NIGERDOCK NIGERIA PLC | NU-LINE ELEVATORS ROYAL BAFOKENG PLATINUM | SPAR | SWAKOP URANIUM p01 Cover Issue FINAL.indd 1

21/03/2016 09:58

Cocoons’ symbol, the butterfly, represents the transformation from waste paper to 100% recycled extra white paper just as the caterpillar transforms into a beautiful butterfly.

Cocoon is a range of 100% Recycled, EU Ecolabel and FSC® Recycled certified, offset and coated papers, with the qualities and appearance of virgin fibre paper but with far superior environmental credentials.

Discover all the savings that can be achieved for your specific print jobs by printing on Cocoon instead of virgin fibre paper by using our environmental calculator at www.antalis.co.za in terms of water, carbon dioxide, waste diverted from landfill and energy.

For further information ‘Just ask Antalis’ Call +27 (0)11 688600 or visit www.antalis.co.za

Produced by:

Exclusively distributed by:

100% recycled paper graphic papers www.arjowigginsgraphic.com Email: graphic@arjowiggins.com

p02-03 Welcome.indd 2

*

I gloss I silk I offset

Email: marketing@antalis.co.za Tel: +27 (0) 11 688 6000

21/03/2016 10:01

WELCOME

Is the DIGITAL REVOLUTION a ticket to new opportunities

Welcome to the latest edition of Africa Industry, the magazine that celebrates our continent’s great businesses.

I

n this issue, our feature on page 10 examines how IT and broadband connectivity is key to Africa’s development, both internally and internationally. In many respects these far-reaching networks are mirroring the job done by the first pioneering railroads, like the East African line between Nairobi and Mombasa. Of course, the British had a vested interest in creating the railway routes, but they also opened up great opportunites for trade and commerce, and linking diverse communities.

Is there a danger that the huge mobile and broadband networks being developed will be similarly hijacked by the global corporations? This time, it seems unlikely, for the digital revolution is being led by Africans themselves.

Last October, the Transform Africa summit in Rwanda saw a gathering of 2,500 delegates, including leading businesses, academics and the United nation commission for digital interactivity. One of its aims, and that of the IT spearhead, Smart Africa, is to ensure that Africans are at the heart

of this revolution and that exploitation is definitely off the agenda. The summit’s chairman, Rwandan president Paul Kagame, said: “Africa is on the threshold of a truly connected future.

Pooling our efforts and committing to accelerate digital talent development, support innovation, and expand and interconnect our broadband networks ably demonstrates that trend.”

It is important that this new digital world is not just for consumers – but for government and city departments too. Having connected public services is vital and can transform each country’s ability to attract and retain investment.

In the past few years, there has been hectic activity in developing submarine cables to link Africa with Europe, the United States and the Middle East. At the same time, mobile networks are seeing an explosion of activity with millions of new users eager to join social networks and do their shopping online. Vast numbers have taken up the opportunity, but there are still vast reserves of untapped potential.

One of the majopr obstacles to

connecting Africa is the huge rural areas, but giants like Google and Facebook are keen to attract this business, so are developing drones to provide satellite capabilities.

However, there continue to be ongoing issues that developing nations have to face, such as drought and electricity supplies. These two huge challenges are obstacles both to business progress and municipal amenities, so, on page 36, we also look at how Johannesburg Water is trying to tackle the drought across the South African region by encouraging the use of boreholes, both by organisations and individuals.

Drought has wide implications, not just when it comes to water use, but also for harvests and foodstocks.

Electricity supplies, still a major issue, is another area which governments are trying to resolve.

Elsewhere in this issue we carry articles on leading African businesses, such as energy giant Sasol, which clebrated its 65th birthday last year, and Royal Bafokeng Platinum. ■ AFRICA INDUSTRY MAGAZINE Issue 02 3

p02-03 Welcome.indd 3

21/03/2016 10:01

4 AFRICA INDUSTRY MAGAZINE Issue 02

p04-05 Contents.indd 4

21/03/2016 10:03

CONTENTS

What’s INSIDE...

06 IN THE NEWS

Technology…

10 BROADBAND IN AFRICA March of the internet echoes pioneering railroad days

Mining & Resources…

16 ATLAS COPCO A giant of industrial innovation 20 SWAKOP URANIUM World-class mining project

Food & Drink…

52 SPAR DISTRIBUTION Distribution services sparkle

Oil & Gas…

28 ROYAL BAFOKENG PLATINUM Platinum caught in metals storm

58 NIGERDOCK NIGERIA PLC Facing up to oil price challenge

Municipality…

62 SASOL Pouring oil on troubled waters

36 JOHANNESBURG WATER Water chiefs battling drought and vandals

Operations Director: Mike Sadr mike.sadr@everestglobalmedia.com

Manufacturing…

Managing Director: Jon Pope jon.pope@everestglobalmedia.com

40 NAMPAK Packaging giant’s drive for new markets

Production Manager: Ali Sadr production@everestglobalmedia.com

44 ASTRA PAINTS Zimbabwe’s market-leader under Kansai Plascon Group banner

Design: Helen Mathias design@everestglobalmedia.com

48 NU-LINE ELEVATOR PRODUCTS PTE LTD Elevating business to another level

www.everestglobalmedia.com

Contributing Editor: Barry Turnbull editorial@everestglobalmedia.com

Accounts Queries: finance@everestglobalmedia.com General Enquiries: info@everestglobalmedia.com

MAIN FRONT COVER PICTURE: Sasolburg Operations, Sasolburg, South Africa. © Sasol – Used with Permission

AFRICA INDUSTRY MAGAZINE Issue 02 5

p04-05 Contents.indd 5

21/03/2016 10:03

NEWS

In the NEWS is reluctantly A mplats mothballing its Twickenham

facility, employing 1,000 workers, following a savage downturn in profit.

Although platinum production and cash-flow actually increased in the South African mines, impairment and restructuring costs pushed the company into the red.

Amplats, which is 80% owned by Anglo American, posted a loss of R12.13bn for the 12 months to endDecember, compared with a R624m profit the year before.

Amplats will put its Twickenham mine into care and maintenance.

The mine, which is a project in development, rather than an operating asset, sustained a loss of R500m during the year.

The decision was to hang fire on the project at a cost of about 1,000 jobs.

The Union mine, which is for sale, has cut production by half to 120,000oz and made free cash flow during the year.

Amplats withheld its annual dividend,

Mining sector jobs cull citing its net debt position and future funding requirements.

The South African mining industry has suffered a double blow, after under-pressure miners Anglo American and Lonmin unveiled 9,000 job cuts between them. Around 4,000 roles are to go in Anglo’s iron ore division while platinum producer Lonmin has shed 5,077 workers since the end of 2015.

In December Anglo American said it would reduce workers from 135,000 to 50,000 by 2017, as it looks to sell off or close around 60% of its assets.

The cuts will heap pressure on the South African Government, which is battling an unemployment rate of 25%.

Around 440,000 people are employed in the country’s mining industry.

Mosebenzi Zwane, South Africa’s Mining Minister, said the Government would seek to mitigate the impact by transferring workers to other mines, or retraining them. ■

African dealmaking still strong and dealers continue W heelers to make Africa a strong

mergers and acquisitions market.

The deal flow from overseas investors in 2015 was marginally ahead of the previous year, with a 1% improvement to 290 transactions, although value fell by $27bn.

The biggest percentage of deals (88%) were in the mid-range up to $250mm, while there were just five worth more than $500m.

Corporations and private equity investors are still looking for

opportunites, given the ongoing access to cut-price finance.

Information specialist Mergermarket says: “ The rise in in-bound investment in Africa, which accounted for 70% of deal value in 2015, proves the attractiveness of the market. In particular, private equity (PE) firms, sitting on a war chest of some $1.3trn in 2015, saw the potential in the growth forecasts of African economies and concluded a record number of deals (118) over the past two years, amounting to more than $15bn.”

Dazzling diamond worth a cool $20m!

The prize find

flawless diamond A huge has been unearthed at a

new Angolan mining operation.

The rare 400-carat rock could be worth millions of dollars.

Australian company Lucapa, a partner of the Angolan Government, has been excavating a mine at Lulo for little more than a year, and it is an extraordinary stroke of good fortune to dig up a diamond thought to be the 27th largest ever recorded. Up until now, the Angolan Star, a 200-carat diamond recovered in 2007, was the country’s biggest stone.

Lucapa chairman Miles Kennedy said the diamond could be valued at more than $20m. “We’re not used to valuing 400-carat diamonds, but if we look at other diamonds slightly less weight than this, you’re looking in the order of $20m,” Mr Kennedy told Radio Australia.

In 2015, Lucapa’s recorded diamond revenue was $8.1 million.

Since the Perth-based company started operations at Lulo a year ago, 10,372 carats have been recovered, excluding the latest find. ■

Deals included Norway-based Norfund AS and NorFinance acquiring a 12.22% holding in Equity Group Holdings and UK firm Actis buying South Africa’s Fruit & Veg City Group.

The mining sector contributed 24% of deal activity. ■

6 AFRICA INDUSTRY MAGAZINE Issue 02

p06-09 AI_Mar16_News_VB.indd 6

21/03/2016 10:08

NEWS

S

outh African-founded IT giant Dimension Data has taken over sponsorship of Africa’s worldclass cycling team.

It has already made a huge impact on the sport by signing British sprint superstar Mark Cavendish.

The team has a 50% African roster and supports Qhubeka – the World Cycling Relief programme. Last year the team helped provide around 5,000 bicycles for kids in rural areas to enable them to travel to school.

International riders like Mark Renwick, Edvald Boasson Hagen and Bernie Eisel have all signed up, along with director Roger Hammond.

Former world champion Cavendish said: “I’m super excited about becoming a part of the team for 2016.

“To join it with the target of helping to win even more races with other strong, experienced cycling names, like Mark Renshaw, Edvald Boasson-

Hagen, Tyler Farrar, Daniel Teklehaimanot, Steve Cummings and, of course, Bernie Eisel, is going to be really special, as well as assisting the talent of young, African riders to top-level success.

“For me personally, one of the biggest incentives is riding for a greater cause in the Qhubeka charity. I’m really looking forward to having a successful year on the road alongside the other guys and helping directly to get more bikes in the hands of people who need them.”

Last year, under MTN sponsorship, the team was invited to the Tour de France as a wildcard entry.

Team principal Douglas Ryder said: “We have been fortunate to receive support from incredible partners, who will help the team move forward successfully and ensure that the

Qhubeka charity remains at the forefront of everything we do.”

BicyclesChangeLives aims to mobilise people through bicycle donations to Qhubeka, World Bicycle Relief’s programme in South Africa.

The goal of the campaign is to raise funds for 5,000 bicycles for people in rural Africa, where lack of mobility often prevents people from accessing opportunity.

World Bicycle Relief is a global non-profit organization, dedicated to advancing education, health and economic opportunities. Since its founding in 2005, it has delivered more than 250,000 speciallydesigned, locally-assembled bicycles to people in need.■

PICTURE: KEI TSUJI

Cycling stars put Africa on the world stage

Barclays’ African exit strategy has confirmed it is to B arclays sell its interests in Africa.

The London institution plans to dump its 62.3% stake in Barclays Africa Group (BAG) following a review by new chief executive Jes Staley.

BAG’s stock has suffered a terrible time on the Johhanesburg bourse, losing around a third of its value in the past 12 months. But this does not mean the end of the famous banking name in Africa, says BAG. The entity will carry on, but it remains to be seen who will take over the majority shareholding.

Barclays has had a presence on the continent for more than a century but is refocusing its ambitions as South Africa’s economy battles against sliding into recession.

The shares fell 6.1% for their biggest

one-day decline since Dec 10, leading losses among the 40 largest securities on the Johannesburg Stock Exchange.

The decline came after the board of Barclays Plc released a statement saying it “continues to evaluate its strategic options” regarding its interest in Barclays Africa.

The exit plans form part of an overall strategy, but Maria Ramos, Chief Executive of BAG, remained defiant: “With an independent board and a separate listing on the Johannesburg Stock Exchange, we are deeply rooted in Africa and remain firmly in control of our future.

“With more than 1trn rand ($62bn) in assets and 12 million customers in 12 African countries, any announcement about the British bank’s shareholding

Jes Staley, Barclays chief executive

won’t impact the ownership of the operations across the continent.”

The UK bank claimed a controlling stake in the South African lender in 2005 as part of a strategy to find growth outside of its home market, where lending was slowing, and to consolidate its businesses across Africa. It was the biggest acquisition by Barclays outside of the UK at the time. ■ AFRICA INDUSTRY MAGAZINE Issue 02 7

p06-09 AI_Mar16_News_VB.indd 7

21/03/2016 10:08

NEWS

Platinum producer confirms downturn news Bafokeng Platinum has R oyal confirmed it is to put the

brakes on capital projects after reporting year end financial losses.

The company posted a loss of R3.77bn for 2015, compared with a net profit of R598.8m the previous year. Gloomy figures for the year merely underlined expectations.

A strong measure of performance – the headline loss per share – was 83.2 cents down from 238.6 cents.

As a result, the ramp-up of key project Styldrift 1 has been postponed.

Platinum mining has been hit by oversupply and falls in demand, amongst other factors, resulting in a drop in prices.

A company statement reported: “The material reduction in the Platinum Group Metals (PGM) prices

experienced during the first half of the year, and the view that the PGM market is likely to remain depressed in the medium term, influenced this decision.”

The miner said it anticipated Platinum Group Metal prices to underperform at least for the next 12 months RBPlat also suffered a R4.5bn impairment against its assets, including the Bafokeng Rasimone Platinum Mine and both phases of Styldrift.

Revenue fell 19% to R3bn because of a 13% fall in the rand price for the basket of metals the company produces, with the weak rand against the dollar offsetting a 28% fall in the dollar platinum price.

Platinum group metal production and sales also fell 5% during the year because of lower grades and safety stoppages during the year.

The statement continued: “Styldrift 1

remains our core platform for organic growth. However, it is not deemed appropriate to ramp up our platinum ounces from the high-quality Merensky Reef into a currently depressed market, nor is it prudent to burden our balance sheet by raising debt under the prevailing market conditions.

“In order to better align the timing of the ramp-up of Styldrift 1 to the prevailing market conditions, the start of ramp-up has currently been delayed by 12 months, which will result in steady-state production of 230,000 tonnes per month being achieved in the first quarter of 2020.”

RBPlat forecast it would end this year with a positive cash balance and would be unlikely to draw down on a R500m revolving credit facility it put in place in January this year. ■

BMW announces sporty new models been tuned to incorporate new springs, dampers, and antiroll bars, alonng with reconfigured driving modes.

Forged, machine-polished and weight optimised 20-inch ‘M’ alloy wheels come with the package, as do lightweight sports seats and belts, with BMW stripes.

The sports exhaust system has black chrome tailpipes, which emit a raunchy growl and bring added attitude to the driving experience.

The Competition Pack costs R123,500 on top of standard model prices. ■

is introducing high-spec sports models to the B MW South African market.

The M3 sedan, M4 coupe and M4 Convertible are to be made available with a special Competition Package – sporty extras to enhance performance and personality.

The additions include handling upgrades and a hike in power, with 0.1 seconds shaved off 0-100km/h and a top speed of 250km/h.

They also include adaptive ‘M’ suspension, which has 8 AFRICA INDUSTRY MAGAZINE Issue 02

p06-09 AI_Mar16_News_VB.indd 8

21/03/2016 10:08

NEWS

Worldwide gender gap of poor women in African A survey countries found that they are 50%

less likely than men to use the internet according to Web Foundation, the organisation established by Web inventor Tim Berners-Lee. Chief Executive Anne Jellema said: “Most poor urban women are confined to a technology ghetto that does little to help them break out of the real ghetto of poverty and gender discrimination.

“Governments need to make digital skills the right of every girl and boy, as part of a wider commitment to quality education for all.”

Women are 1.6 times more likely than men to report a lack of skills as a barrier, and cited cash as another major obstacle, with one gigabyte of data costing as much as three quarters of

the amount regarded as the monthly poverty line in the countries studied.

World leaders have agreed an ambitious plan to end poverty and inequality in the next 15 years, as one of 17 Sustainable Development Goals (SDGs) they adopted at the United Nations in New York.

The fifth SDG, concerning gender equality, explicitly mentions the importance of bringing technology to more women by 2030.

“To achieve the UN global goal on women’s empowerment through technology, the key challenge is how technology can assist those without status, or power to claim it,” said Ingrid Brudvig, author of the report.

Women are most likely to use the Internet for keeping in touch with family

Jovago boosted by AXA investment

L

eading African hotel booking site Jovago is to expand operations, following an investment from insurance giant AXA. The Parisian company is contributing $84m to help Jovago build on its business, which already covers 25,000 hotels across 40 countries.

AXA will take an 8% stake in Africa Internet Group, the owner of Jovago, which includes MTN, Rocket and Millicom as shareholders.

Paul Middy, Chief Executive of Jovago, said; “This new wave of funding will help us achieve the acceleration of growth and development of services across Africa.

It’s amazing for Jovago to partner with such a strong group, allowing us to break down the barriers to travel and make it easier and more affordable.

“Since the funding is well-timed and the amounts invested significant, this makes for one of the top investments in the history of start-ups in Africa. It also strategically positions Jovago and

The Emin Pasha boutique hotel in Kampala, one of Jovago’s luxury destinations

Africa Internet Group to further build e-commerce in the country.”

AXA will become the exclusive provider of insurance products and services through AIG. Denis Duverne, Chief Executive of AXA, said: “This transaction confirms AXA’s long-term commitment towards the African markets and represents another step in our development on the continent. Africa is home to some of the most dynamic and promising insurance markets in the world and our partnership with Africa Internet Group will enable us to accelerate materially our development.” ■

and friends through social media. Of the men and women surveyed who do use the Internet, 97% reported using social media, but this alone does not necessarily bring about empowerment without other changes being made.

Ms Brudvig added: “There is a real risk that online social networks simply serve to recreate the inequalities that poor women face in their lives, rather than helping them to open up new horizons.” ■

Africa goes pop

S

ony Music Entertainment sees Africa as a hotbed of new pop talent.

The conglomerate is expanding operations across the continent as part of a long-term strategy. It has already opened an office in Lagos, Nigeria to serve as a hub for West Africa, and is planning to do business in Nairobi, Kenya, which will anchor Sony Music’s physical operations in East Africa.

Sony Music recently signed Nigerian superstar Davido on a global deal, and in East Africa, it has also supported local artists in the region, recently signing Redsan, amongst others.

Sony Music has long had offices in South Africa, in both Johannesburg and Cape Town and, throughout the continent, the company earns revenue from partners including Vevo, YouTube, Apple Music and iTunes.

Sean Watson, Managing Director of Sony Music Entertainment Africa, says: “We are really keen to partner with African artists to deliver local, African and global success stories.

“With over 800 million people living in Sub-Saharan Africa, the African continent is a market with huge potential for local artists wanting to expand their horizons.” ■

AFRICA INDUSTRY MAGAZINE Issue 02 9

p06-09 AI_Mar16_News_VB.indd 9

21/03/2016 10:08

TECHNOLOGY

MARCH OF THE INTERNET echoes pioneering railway days

There are striking echoes between the advance of the information superhighway across Africa and the railways.

Over 100 years ago, the British carved out an East African rail route between Nairobi and Mombasa, to open up trade as well as securing their foothold in that part of the continent.

I

n the last few years, the emphasis has been on laying cables to carry internet traffic and connect Africa to the rest of the world.

East Africa was the last major global region to be hooked up to the World Wide Web. The comparison with railways is not tenuous either. The first great transcontinental railroad built across America by Union Pacific started at Council Bluffs, Iowa – now home to massive data centres run by Facebook, Microsoft and Google.

But when it comes to progress in Africa, there are fundamental divergences. The demand for connectivity is being driven from within the continent by people like Rwandan

president Paul Kagame and not at the behest of Western corporations. Of course, there remains the danger that these companies will muscle in under the pretence of extending a helping hand and then lock users into their services.

There is no question, however, that without these modern internet connections, African businesses would be at a severe disadvantage.

In recent years, there have been several major projects to lay information-carrying submarine cables to connect Africa with Europe and Asia. This push forward has greatly enhanced internet take-up, but there is still much work to be done.

Latest figures show that internet penetration across Africa is now 28%,

Old Engine, Nairobi, Kenya

still some way behind the global figure of 49%. But drilling down further, we see that in the rest of the world, 90% of people in those areas with connectivity are actually online.

In Africa it is just 9.8%. That huge disparity demonstrates what still needs to be done.

Evidence is already clear that in centres where disposable income is rising, so is internet usage. Driving this has been mobile phones with 3G

10 AFRICA INDUSTRY MAGAZINE Issue 02

p10-13 AI_Mar16_Broadband.indd 10

21/03/2016 10:19

TECHNOLOGY

capabilities as well as a wave of new businesses from web entrepreneurs.

According to US consult McKinsey, Africa’s iGDP (internet gross domestic product) remains low at 1.1%GDP, just over half the levels seen in other emerging economies. But there is significant variation among individual countries. Senegal and Kenya, although not the continent’s largest economies, have Africa’s highest iGDPs, and governments in both countries have made concerted efforts to stimulate Internet demand.

By 2025, Africa’s iGDP should rival the current market-leaders, such as Sweden and the United Kingdom.

Increased penetration could see private consumption at 13 times current levels. Demographic trends – including urbanization, rising incomes, and a huge generation of young, tech-savvy Africans – will drive this growth.

More than half of urban African consumers already have Internetcapable devices. Basic smartphones have already fallen below the ‘tipping point’ of $100 per unit, and companies are introducing new affordable models specifically geared to the African market.

Mobile banking is also an important driver, with fast-growing markets in Kenya, Nigeria, South Africa, Rwanda and Tanzania.

Regulators and governments have encouraged improvements in national networks to enable operators to increase traffic volumes as well as customer expectations of a reliable service. These developments are providing the bandwidth needed to connect millions of additional citizens to the internet, while the cost of services has plummeted as networks are no longer constrained by expensive satellite links.

Africa 2015. He explained that Africa was having to play catch-up as far as globalisation is concerned and that modern technologies were a vital part of the process.

The summit’s theme, Accelerating Digital Innovation, brought together governments and the private sector on a platform which enabled young innovators to highlight their potential.

The summit attracted officials,

Transforming Africa Technology will help put Africa on the global map according to Rwandan president Paul Kagame. The Premier was speaking at one of the continent’s most important events – Transform

Paul Kagame

Top 10 countries in Africa for internet users 1. Nigeria – 92.7m 2. Egypt – 48.3m 3. Kenya – 29.2m 4. South Africa – 26.8m 5. Morocco – 20.2m 6. Sudan – 9.3m 7. Uganda – 8.5m 8. Tanzania – 7.6m 9. Algeria – 7.2m 10. Tunisia – 5.4m

chief executives from the World Economic Forum, the Alliance for Affordable Internet, the World Summit Award, Ampion, Inspire Africa, Global Innovation Gathering (GIG) and The World Bank, as well as heads of ICTbased businesses.

Kagame said that ICT should be a tool that enables governments to develop strategies in order to improve the general lives of the public.

“There is never a good explanation AFRICA INDUSTRY MAGAZINE Issue 02 11

p10-13 AI_Mar16_Broadband.indd 11

21/03/2016 10:19

TECHNOLOGY

why we were left behind in the first place. We have the right strategies in place – but technology is, first and foremost, supposed to be important in transforming the lives of our people.

The ICT dimension has to transform everything we do in government and probably outside of it,” he said.

“Just like women’s empowerment, ICT should cut across all departments of government. This means that everyone in public service should integrate ICT into the work of their institutions,” Kagame added.

He noted that technology is increasingly making African markets accessible, meaning that Africa can no longer be excluded from globalization.

“We can develop our human capital and ensure that African productivity is high through ICT. But that does not mean that it is easy. We need to, first of all, have a mindset of curiosity, responsibility and hard work, which is necessary if we are to become our best selves and compete effectively across the world,” he remarked. rise of the drones Facebook seems to relish the challenge that its attempt at world domination

is being thwarted by lack of internet coverage in many areas. As a result, it is creating a fleet of 11,000 drones that will beam signals down from on high.

The ‘Aquila’ drone has been developed and is being tested in the English countryside. The network of flying machines can stay airborne for three months at a time.

Jay Parikh, Facebook’s vice-president of engineering, said: “Our mission is to connect everybody in the world. This is going to be a great opportunity for us to motivate the industry to move faster on this technology.” The idea is to partner internet service providers, but usage will depend on how many people in rural areas will actually have access to the internet.

Voyage under the sea The first submarine cable to connect Africa was actually completed back in 1993 when the internet was mainly used by the military and universities. In the last eight years, there has been an explosion of activity with the continent now surrounded by a network of underwater cables.

Governments, private investors and communication operators have poured

Drones are being tested in the English countryside

‘‘

‘‘

Our mission is to connect everybody in the world

Jay Parikh, Vice President of Engineering, Facebook

12 AFRICA INDUSTRY MAGAZINE Issue 02

p10-13 AI_Mar16_Broadband.indd 12

funds into costly new ventures. One example is Seacom, established in 2007 with the objective of increasing internet traffic. Its cable system follows the East African coastline linking South Africa, Tanzania, Uganda, Kenya and Mozambique to hubs in France and Mumbai.

The centre of activity is South Africa, where a number of cable connections have been made such as Seacom, SAFE (South Africa Fart East Cable), EASSY (The Eastern Africa Submarine Cable System) and WACS (The West African Cable System).

But challenges remain, says Seacom Chief Executive Byron Clutterbuck, the challenge now is not on the international connections: “We have unleashed the international side, we have terabits of capability sitting there in the Teraco data centre. However, you need to be able to take that over to the customer.”

Clutterbuck is referring to what is known as the ‘last mile’, or networks that actually reach consumers.

One city dealing with this is Johanesburg. The City has rolled out over 1150km of fibre-optic cables, creating one of the best and fastestgrowing cable networks in Africa, and positioning Johannesburg as Africa’s leading investment and commercial destination. A city spokesman said: “This strategic entity will assist in the acceleration of economic growth and development, attracting investment, enhancing access to services and improving the quality of life. Being a digital city will also result in reduced cost of telecommunications, improved service delivery and increase in access to information technology.”

Liquid Telecom is proposing a new undersea cable from South Africa to the Middle East and Europe.

Using the brand name Liquid Sea, the company has already issued a ‘Request for Tenders’ for prospective bidders to secure the contract to build the 10,000 kilometre network in the next two years.

Nic Rudnick, Chief Executive Officer, said: “The Liquid Sea project reaffirms

21/03/2016 10:19

‘‘

TECHNOLOGY

‘‘

The Liquid Sea project reaffirms our commitment to providing the fastest and most reliable access to the internet to every single African on the continent Nic Rudnick, CEO, Liquid Telecom

Submarine cable map (Courtesy TeleGeography © 2016 PriMetrica Inc.)

our commitment to building Africa’s digital future and removing any bottlenecks in providing the fastest and most reliable access to the internet to every single African on the continent.

“The impact of Liquid Sea will be a far more reliable and ultra-fast connection for governments, businesses, schools and homes, in both coastal and landlocked countries across Africa.” research demonstrates obstacles in a digital world The Institute of Internet Research at Oxford University has been examining the impact of connectivity on African industries. One study focused on tourism within Rwanda.

Researcher, Dr. Mark Graham, said: “East Africa was the world’s last major

region without submarine fibre-optic broadband internet access, and until the summer of 2009 had been forced to rely on slow and costly satellite connections for access. However, the region has recently been connected via fibre-optic cable – in theory, allowing much greater speeds at much lower prices.

“This rapid transformation in the region’s connectivity has prompted politicians, journalists, academics, and citizens to speak of an economic revolution fuelled by information and communication technologies (ICTs) happening on the continent. while some research has been conducted into the impacts of ICTs on economic processes and practices, there remains surprisingly little research into changing connectivity in East Africa.

“Many tourism firms have adopted and are actively using digital connectivity. But, digital connectivity alone has not led to transformation.

Rather, a set of wider barriers prevents the transformative effects of connectivity being realised.”

Dr. Graham said a wider perception of Rwanda as a safer destination and its ‘gorilla’ brand had fuelled tourism but evidence that internet connections had been instrumental was less evident.

He says businesses embracing new technologies need to how to adapt them and work together.

For instance, the websites for tourism Rwanda are mundane informationled sites as opposed to the attractive brand-led marketing of places like South Africa. A huge learning curve still needs to take place, he concludes. ■ AFRICA INDUSTRY MAGAZINE Issue 02 13

p10-13 AI_Mar16_Broadband.indd 13

21/03/2016 10:19

p14-15 House ad.indd 14

21/03/2016 10:07

p14-15 House ad.indd 15

21/03/2016 10:07

ATLAS COPCO

A giant of INDUSTRIAL INNOVATION

Atlas Copco’s reputation and customer reach spans the globe. The company has more than 44,000 employees, supplies customers in 180 countries and has multi-billion dollar earnings in construction, industry and mining. countless people may O fnotcourse, even be aware that Atlas

Copco has a hand in the production of many everyday things – from the juice you have at breakfast to that relaxing glass of wine after a hard day’s work.

The company has an array of products and services, such as power tools and assembly systems, as well as being the leading provider of compressors. But it’s low key approach is very much in keeping with the origins of the company in 1873, when engineer Edvard Franckel approached Andre Wallenberg of the Swedish banking dynasty to finance a new venture.

The manufacture of railway cars began then, but neither could have foreseen the impressive global growth

that has taken place for 150 years.

To strive to reach the top in any given activity is demanding, but staying there elevates the challenge even further, as CEO Ronnie Leten explained: “We have top products with the latest technology to boost consumer productivity.

We have a service organisation that promotes continuous growth, but we all want to do better, whether it is in sales, service, or production, so there is a continuous drive from all of us.”

Energy efficiency That drive is based on key touchstones, such as innovation, energy efficiency and satisfying demanding customers.

Mr Leten continued: “For the buyer of a

Ronnie Leten

compressor, or construction equipment like a roller or paver, or mining equipment like a boomer, the energy efficiency of those machines is a very real factor in whether a customer buys.

“When it comes to tools, we are

16 AFRICA INDUSTRY MAGAZINE Issue 02

p16-19 AI_Mar16_Atlas Copco.indd 16

21/03/2016 10:06

MINING & RESOURCES

Challenging climate The business climate remains challenging, with mixed demand for Atlas Copco’s products and service. At the company’s last annual meeting, the CEO reported that manufacturing industry was healthy, as is the motor vehicle industry and that orders for small and medium-sized compressors and for vacuum increased. However, the construction industry was more or less flat.

The mining sector had a very low demand for equipment and, just like in 2013, measures have been necessary to safeguard competitiveness.

Despite these conditions, orders increased by 1% last year and record revenues were achieved, with good

contribution from growth of the service, business and strategic acquisitions. Mr Leten said: “Sustainability aspects and efforts are integrated in the way we do business. In our world, this includes everything from competence development and ethical behaviour to the development of new innovative products, which offer customers even higher productivity.

“We have ambitious goals for energy efficiency and continue to decrease our CO2 emissions in relation to cost of sales in our total supply chain.

Even more importantly, we are launching many new products that dramatically lower our customers’ energy consumption.

Management systems are in place to ensure that we safeguard the environment, health, safety and quality in our operations.”

It said that its service business remained robust in all business areas and that moderate growth had been achieved. Demand for Atlas Copco’s equipment, however, decreased in total.

The demand from some customer segments – for example, automotive and electronics, remained healthy, while other segments continued to be weak.

These included mining, construction, and oil and gas.

Order volumes increased for industrial assembly solutions as well as for vacuum equipment, while they decreased for mining and construction equipment and for compressors.

Geographically, Atlas Copco said Europe was robust and a moderate year-on-year order growth was achieved in the region. Order volumes also grew in India, but they were lower in many other markets, including China, Brazil, Australia and the US, it said.

‘‘

Europe was robust and a moderate year-on-year order growth was achieved in the region

‘‘

the facilitator that helps provide energy-efficient solutions to the customer. For example, our assembly technologies allow auto manufacturers to build cars using lighter materials, such as aluminium, making them more fuel efficient.

“Also, our customers want to be sure our products are 100% safe. And innovation is also a core value, because technology is changing rapidly and this means that, ultimately, customers have to remain competitive.”

Operational efficiency is also paramount for the lean company, says Mr Leten: “in several factories we have made assembly more efficient, but we still have some way to go to improve the supply chain and eliminate waste.

“Why are we so focused on innovation? Part of the answer is because it supports our goals for sustainable profitable development.

“We strive to increase our competitive edge by improving our customers’ energy efficiency by 20%, through products that are developed, manufactured and sourced responsibly.

“That is why we are so focused on providing high-quality products that are more productive, energy-efficient, safer, ergonomic, lighter, or that in other ways make customers more successful.”

Ronnie Leten, CEO, Atlas Copco

Atlas Copco is claiming “solid profitability” and record cash flow in tough market conditions, in its interim report on the fourth quarter and fullyear summary of 2015.

The company’s products include compressors, vacuum solutions and air treatment systems, construction and mining equipment, power tools and assembly systems.

AFRICA INDUSTRY MAGAZINE Issue 02 17

p16-19 AI_Mar16_Atlas Copco.indd 17

21/03/2016 10:06

ATLAS COPCO

Community development

Water For All is Atlas Copco’s main community engagement initiative.

Run by employees, the mission of the organization is to provide people in need with long-term access to clean drinking water.

Water For All was founded in Sweden

by Atlas Copco employees in 1984.

Through voluntary employee donations and contributions by the company, this non-profit organization has so far provided clean drinking water to more than 1.5m people. Water For All also welcomes external contributions,

such as from non-governmental organizations or customers.

Today, there are employees in some 30 countries running – or in the process of starting up – Water For All. These local organizations always work together with a partner in the field. The partners are carefully selected and have to be well-reputed, non-profit and nonpolitical organizations.

The majority of the projects have been in sub-Saharan countries, such as Kenya, Tanzania, Malawi, Mali and Ethiopia. There have also been substantial projects in China, India and Bangladesh, to name a few. The first project ever was in Peru.

Learn more about Water For All at its dedicated website www.water4all.org.

advanced stage. The Barra Olympic Park comprises an athletes’ village, sports arenas, media centre and a 400-bed hotel. The lead contractors have turned to Atlas Copco for leasing much of the required construction equipment.

Spokesman Luiz Mendes explained why they chose the company: “Atlas supplies state-of-the-art equipment, has a worldwide reputation and provides outstanding technical support.” ■

Key projects The Olympics in Rio take place later this year, with construction of facilities at an

Construction underway at the Rio Olympic Park

THOR thunders ahead Thor Developments has muscled its way on to the top table of Zambian building contractors in just a few hectic years.

T

om and Lorna van Vuuren took command of the business in 2009, and have steered it from $800,000 in annual sales to $35m.

A strict work ethic, reliance on Zambian staff and forging lasting relationships with clients has driven the company forward.

The impressive growth of the business has also been good news for jobs, as the permanent workforce has risen tenfold to 800, with another 1,200 sub-contractors on the books.

Tom said: “We work on a few important principles; keep overheads to a minimum, have a five-day completion goal with your clients,

keep costs low and maintain good relations with customers.”

The company’s breakthrough came through working with Heriot Properties to build Kafubu mall at Ndola, followed by further successful tenders with ZBL Maltings, Bell Equipment Retail Facility and other malls.

Thor Developments is also working closely with a number of educational institutions, such as Copperbelt

University and Nortec, as well as Mechanics for Africa. The idea is to get qualified young people out on-site to learn the job properly.

Thor has had support from Barclays and Stanic banks and Banc ABC is currently showing great initiative and support for the business.

Tom added: “We stick to the basics; we are contractors and must deliver a service that all are proud of. If we do not develop people, we are failing.

We want to develop a vital, self-sustaining business for now and the future.”

18 AFRICA INDUSTRY MAGAZINE Issue 02

p16-19 AI_Mar16_Atlas Copco.indd 18

21/03/2016 10:06

AFRICA INDUSTRY MAGAZINE Issue 02 19

p16-19 AI_Mar16_Atlas Copco.indd 19

21/03/2016 10:06

SWAKOP URANIUM

WORLD CLASS mining project One of the most ambitious mining projects in the world will continue to pick up pace in 2016. Swakop Uranium is currently developing the Husab Mine in Namibia, which is projected to become the second biggest uranium producer in the world.

P

otential production is more than the total current uranium production of Namibia and will elevate the nation into the top tier of world producers. It also represents the biggest investment

by China on the African continent.

The discovery has been one of the most significant mineral finds in decades. As a result, Swakop Uranium was established in 2006 to explore and produce high-grade uranium oxide as a source of fuel conversion for environmentally-friendly nuclear power.

The Husab area was pinpointed for exploration due to its similar rock formations to those of the Rossing mine to the north.

A wide-ranging feasibility study followed, involving many international consultancies. Environmental impact assessment (EIA) studies were conducted on both the mine and local infrastructure, such as roads, pipelines and power lines.

The assessments and licences were then granted, giving a final goahead for the scheme. As a result, an extensive drilling operation began and

Uranium

continues today.

Isak Katali, Minister of Mines and Energy, has congratulated Swakop Uranium’s majority shareholder, CGNPC, on this massive investment and said that it would assist in the growth and development of Namibia through job creation, export earnings and increased taxes.

Two-billion-dollar baby The Husab Mine is under development at the town of Swakopmund in the Erongoregion of western-central Namibia, at an investment cost of $2bn.

The mine is located approximately 60km from Walvis Bay and is expected to be the second largest uranium

mine in the world – after the McArthur River uranium mine in northern Saskatchwean, Canada – and the largest open-pit mine on the African continent. The Husab Mine uranium is granite hosted. The mine has the potential to produce 6,800 tonnes of uranium oxide per annum and contains around 280m tonnes of uranium ore.

Mining is expected to last nearly 20 years. Swakop Uranium was created in 2006 by Extract Resources, an Australian company listed on the Australian, Canadian, and Namibian stock exchanges, to explore, evaluate, develop, and produce uranium oxide.

In April 2012, Swakop Uranium was acquired by Taurus Minerals of Hong Kong, a subsidiary of the China General

20 AFRICA INDUSTRY MAGAZINE Issue 02

p20-27 AI_Mar16_Swakop.indd 20

21/03/2016 10:36

MINING & RESOURCES

attractive destination for foreign direct investment. More than 8000 workers will be employed during the construction phase.”

Environment Swakop Uranium has an environmental management plan for all species of fauna and flora found near, or within, its exploration and mining areas.

Welwitschia mirabilis, an ancient plant, grows in areas around the mine and carbon dating shows that some plants can be up to 1,000 years old.

One major challenge is to ensure that limited nearby water resources

Taurus Minerals of Hong Kong owns 90% of Swakop Uranium. The remaining 10% is owned by the Namibian state-owned Epangelo Mining Company Nuclear Power Company (CGNPC), Uranium Resources Co. Ltd. and the China-Africa Development Fund.

Taurus owns 90% of Swakop Uranium. The remaining 10% is owned by the Namibian state-owned Epangelo Mining Company. CGNPC’s investment in Swakop Uranium is one of the biggest investments in Namibia since its independence and, by far, the single biggest investment by China in Africa.

More than US$100m has been spent to reach the construction phase. A further US$2bn will be required to bring the mine online A spokesman for Epangelo Mining said the development and opening of the mine demonstrates that Namibia continues to be an AFRICA INDUSTRY MAGAZINE Issue 02 21

p20-27 AI_Mar16_Swakop.indd 21

21/03/2016 10:36

SWAKOP URANIUM

22 AFRICA INDUSTRY MAGAZINE Issue 02

p20-27 AI_Mar16_Swakop.indd 22

21/03/2016 10:36

MINING & RESOURCES

are not adversely affected by mining operations. The Namib Desert is a hyper-arid desert, with an average rainfall of between 0-50mm. Long-term records from the Rossing Uranium Mine, situated 5km north of the Husab mine, show an annual average rainfall of between 30-35mm per annum.

A hydrogeology report commissioned

More than 8000 workers will be employed during the construction phase

Welwitschia mirabilis, an ancient plant, grows in areas around the mine

by Swakop Uranium concluded that the mining activities will have an effect on water levels. Although there are no farmers or settlements in the area, Swakop Uranium has drilled a number of groundwater monitoring holes around the pit, the waste rock dump, the tailings storage facility, the Welwitschia fields as well as the Khan and Swakop Rivers, to measure the effect of mining activities in the area.

All the boreholes have their water

levels measured monthly and strategic boreholes are sampled every three months for water quality.

In order to reduce the dust produced by mining operations to acceptable levels, the Husab mine will employ a number of suppression methods such as using water, extraction fans, chemicals, and other suppressants.

Community support Community engagement is a key goal for the company, providing grant bursaries for promising Namibian university students on an annual basis, and has funded the construction of a new school. The company has also established a trust, called the Swakop The official ground breaking ceremony on the Husab construction site

Uranium Foundation Trust that will focus on training and education, the environment, infrastructure, health, and entrepreneurial development. The trust has donated N$100,000 to the Namibian Government’s Drought Relief fund.

Uranium mining is the process of extracting ore from the ground, with Kazakhstan, Canada and Australia currently the biggest producers. Ores are usually processed by grinding materials to a uniform particle size and treating them with chemical leaching.

The milling process then yields a dry powder, known as yellowcake, which is sold on the world market. However, the Fukushima nuclear disaster in Japan led to a fall in demand and, consequently, a reduction in prices.

The Husab mine will produce approximately 15 million pounds of uranium oxide per annum

AFRICA INDUSTRY MAGAZINE Issue 02 23

p20-27 AI_Mar16_Swakop.indd 23

21/03/2016 10:36

SWAKOP URANIUM

PUROLITE’s proud performance Purolite is a leading manufacturer and developer of ion exchange, catalyst, adsorbent and specialty resins.

E

stablished in industries such as hydrometallurgy, water treatment, power and ultra-pure water, Purolite brings more new products to the market than any other resin company. We are proud to supply ion exchange resin for the recovery and upgrading of uranium to Swakop Uranium’s Husab Mine Project. Our proven technologies efficiently and economically extract thousands of metric tonnes of uranium, gold and other metals for customers around the world. With the largest international technical sales force, global production and dedicated R&D, we work hard to develop solutions to complex problems.

Contact Purolite to see how we can improve your processes: telephone +27 (0) 11 7928251; email sales.southafrica@purolite.com www.purolite.com

Leading the way to optimum recoveries.

We are a proud supplier of ion exchange resin to Swakop Uranium’s Husab mine. Innovative products, technical support and reliable delivery make Purolite the market leader for uranium extraction in Southern Africa.

Photo: James Rosie. ©Purolite 2016

Purolite resins are used in many industries and applications, including hydrometallurgy (uranium, gold & precious metals, and base metals), industrial water, wastewater, ultra-pure water, power, pharmaceutical, and food & beverage.

To discover more information, visit us at www.purolite.com sales.southafrica@purolite.com Tel: +27 (0) 11 792 8251

24 AFRICA INDUSTRY MAGAZINE Issue 02

p20-27 AI_Mar16_Swakop.indd 24

21/03/2016 10:36

‘‘

‘‘

MINING & RESOURCES

Labour relations are facing serious challenges in the macro-environment, especially in the mining industry.

Erongo Regional Governor, Cleophas Mutjavikua

NUCLEAR ENERGY ASSOCIATION OVERVIEW ■ In the last 60 years, uranium has

become one of the world’s most important energy minerals.

■ It is mined and concentrated similarly to many other metals.

While uranium is used almost entirely for making electricity, a small proportion is used for the important task of producing medical isotopes. Some is also used in marine propulsion, especially Naval.

Uranium is a naturally occurring element, with an average concentration of 2.8 parts per million in the Earth’s crust. Traces of it occur almost everywhere. It is more abundant than gold, silver, or mercury, about the same as tin and slightly less abundant than cobalt, lead, or molybdenum. Vast amounts of uranium also occur in the world’s oceans, but in very low concentrations.

Workers’ pay deal Swakop Uranium and the Mineworkers Union of Namibia (MUN) have signed a three-year wage settlement.

Erongo Regional Governor, Cleophas Mutjavikua said: “Despite the fluctuating world economies, which impacts on Namibia, both parties proceeded to the signing of this historic agreement which paves the

way for employees to have a better understanding and clarity of their conditions of employment for the next three years.”

The Governor added: “I am confident that this three-year agreement will set the tone for the rest of the country to enter into Smart Partnerships between employer and trade unions.” National Union of Namibian Workers President, Ismael Kasuto said, “realistically, the agreement is in the interest of the workers, as we were expecting lesser benefits due to the current volatile Uranium market and the fact that Husab is not in full production, but still in the construction phase.

“If one compares your Agreement with similar industries, you got a good deal, especially the benefit guarantees as a result of a multi-year deal.”

Speaking on behalf of the employees, Jackie Karumbo, MUN SU Branch Chairperson said, “both sets of negotiating teams were caught between the expectations of employees and the shareholders. Bearing in mind the diverse objectives of the parties, which are the benefits of the workers versus running an operation at the least possible cost. However, we managed to get here, since we had to get ourselves together. Critical thinking became the order of the day, analysing the bigger picture with the objective to establish principles that will benefit both parties – the employees and the employer.”

The parties have agreed to a 7% increase on basic salary across the board for members in the bargaining unit, covering the period January 1, 2016 to December 31, 2018.

According to the Governor, labour

Erongo Regional Governor, Cleophas Mutjavikua

relations are currently facing serious challenges in the macro-environment, especially within the mining, fishing and tourism industries.

Mutjavikua said that new players (unions) will come up with new tactics to win over members from already existing unions as the latter do not nurture their ideologies to keep their membership.

“The walkout of some leadership

Isak Katali (who is he?)

AFRICA INDUSTRY MAGAZINE Issue 02 25

p20-27 AI_Mar16_Swakop.indd 25

21/03/2016 10:36

SWAKOP URANIUM

and members from long-existing unions clearly shows that members are not being nurtured. You should not only be part of the union for benefits, you should also be part of the union for its ideologies. However, unions do not educate their membership and so members move from one union to another,” the Governor said.

Future demand

on the environment and the health of local communities.

Consultation must be undertaken widely and not only with the mining industry and scientists, but also with communities that will be affected by uranium mining. There also has to be complete transparency about the details of the development and operation of uranium mining operations with all stakeholders, he said. ■

Like many metals, the price for uranium has fallen. But with 65 nuclear reactors in production and 165 more in the pipeline, long term demand is assured.

Power stations and weapons will drive demand, according to the North-West University Mine Water Research Group.

Professor Frank Winde stressed that the mining of uranium must be analysed in a comprehensive costbenefit analysis, which had to include all externalised costs, such as its impact

TURNMILL provides columns for Husab Project Turnmill Proquip Engineering (Pty) Ltd was awarded the contract for the adsorption and elution columns for the Swakop Uranium Husab Mine Project in Namibia.

T

urnmill started the project in April 2014 and completed by March 2015 – with full responsibility comprising the design, supply, fabrication, testing, surface protection, packaging, delivery, and site installation supervision and acceptance of the adsorption columns and elution columns (IX columns) in the Ion Exchange (IX) Plant.

The adsorption and elution columns will operate in the Ion Exchange (IX) area of the Husab Uranium Mine Process Plant. The IX will consist of nine parallel trains, each including one adsorption column and one elution column.

The columns will be installed outdoors. The IX columns are designed for a minimum operating life of 25 years, capable of continuous operations (24 hrs/day, 365 days/year), with downtime only for normal maintenance.

The project was transported on trucks from Vanderbijlpark, for final delivery to the Swakop Uranium Husab Project in Namibia.

Turnmill Proquip Engineering (Pty) Ltd is a medium to heavy specialist engineering company in Vanderbijlpark, with a notable track record as one of South Africa’s leading suppliers of manufacturing, fabrication, machining, welding and refurbishment services to industrial petrochemical and mining companies in South Africa and Africa.

Turnmill offers turnkey services including design, detail structural analysis and project management, as was aptly illustrated in the Husab Project. The company has a certified Quality Management System in place, in accordance with DIN EN ISO 9001:2008 (Certification was performed by TÜV Rheinland), and ISO 3834 Part 2 certification issued by SAIW. For further information, contact Charl Welman: charl@turnmill.co.za; cell 0836 760710; landline 016 986 0030; fax 016 986 0127. Or visit www.turnmill.co.za and www.structa.co.za.

26 AFRICA INDUSTRY MAGAZINE Issue 02

p20-27 AI_Mar16_Swakop.indd 26

21/03/2016 10:36

A4-Ad

Specialist engineering for Manufacturing, Fabrication, Machining, Welding and Refurbishment services

Tel: +27 (0)16 986 0030 Fax: +27 (0)16 986 0127 e-mail: rfq@turnmill.co.za

www.turnmill.co.za 12 Fairbank Street NW7

supplying your total needs for: Pressure Vessels

Materials Handling &

Columns, Shell & Tube Heat Exchanges and Drums

Structural Components Mill Components & Spares

Shop Fabricated Tanks

Rotable Unit Repairs

Rotary Kilns and

and Refurbishment

Vanderbijlpark, 1911 PO Box 2092, Vereeniging, 1930

Processed Fired Equipment

Turnmill is an ISO 9001:2008 and an ISO 3834 Part 2 Certified Company

Turnmill is part of the STRUCTA GROUP of Companies

AFRICA INDUSTRY MAGAZINE Issue 02 27

A4-Ad 1 p20-272015-Nov.indd AI_Mar16_Swakop.indd 27

2015-11-24 09:50:30 AM 21/03/2016 10:36

ROYAL BAFOKENG PLATINUM

PLATINUM caught in metals storm Royal Bafokeng Platinum (RBPlat) suffered a tough year after a one-fifth reduction in the basket price. Share earnings dipped, but the downturn also led to a write down of R2,89m of assets, following the price collapse of platinum group metals (PGMs). says figures T hewerecompany also hit by production

interruptions related to safety stoppages, a tax dispute with the South African Revenue Service and wage cost increases.

However, cash preservation continued to be a priority and RBPlat remains well capitalised, with no debt and a strong balance sheet, which positions it well for the continued weak pricing environment expected during 2016.

The weakening of the platinum market and continuing safety issues have proved a challenge for Royal Bafokeng Platinum.

The downturn in commodity markets and a trend towards recycling in automotive components has impacted on the businesses, along with several fatal accidents, which has frustrated the company’s attempts to achieve a zero rate.

As a result of tough market conditions,

RBPlat is to scale back its capital expenditure and ‘tighten its belt’.

However, the business has no gearing and remains in a better position than many competitors. But the key factor remains in a strong balance sheet and controlled spending.

Platinum prices are 30% down in US dollar terms and 18% down in rand over the year. Several fatalities in the mines also resulted in Safety 54 stoppages imposed by the Department of Mineral Resources (DMR), resulting in the loss of 14,000oz of platinum group metals (PMGs) and R250m in lost revenue.

Despite this, over a half a billion rand of cash was generated. Chief executive Steve Phiri said: “The biggest elephant in the room is the weak PGM price.

If the industry does not change, the market will force change upon us and that will be catastrophic for the industry and the country.”

The company’s biggest investment at

the moment is in Styldrift, where capital expenditure will be slowed down.

“If spot prices continue, we will receive R7.5bn less over the next five years and this would put us at risk.

However, we have always wanted to enhance flexibility through strategy and, by doing this, we will preserve cash and keep the balance sheet ungeared, ” Steve adds.

So, further development will only continue through using cash flow from existing operations.

RBPlat said it had delayed the timing of its Styldrift I project, as the depressed platinum market would prevail in the medium term. It added that capital expenditure on Steve Phiri Styldrift I had

28 AFRICA INDUSTRY MAGAZINE Issue 02

p28-33 AI_Mar16_RBPlatinum.indd 28

21/03/2016 10:18

MINING & RESOURCES

Styldrift project

Royal Bafokeng Platinum is listed on the JSE

amounted to R5.19bn as of the end of the third quarter. Expenditure on underground infrastructure to be completed in 2016 would total R1bn.

RBPlat said that it would slow expenditure on Styldrift in an effort to protect the company’s balance sheet amid depressed platinum prices, which it said would persist for the “foreseeable future”. The project Catalytic converter

Platinum jewellery is popular in India

will double RBPlat’s production to 600,000oz of PGMs. Platinum markets Two of the biggest markets for platinum are the automotive and jewellery industries. Many modern vehicles are built on green credentials, using technology like catalytic converters.

Recent regulation upgrades mean manufacturers are duty-bound to produce ecofriendly vehicles.

Although the market has flourished, some car makers are turning to recycling items rather than

buying from primary sources. This untimately creates a demand problem for mining companies.

Similarly, the platinum demand for jewellery has increased, particularly for wedding gifts in countries such as India as an alternative to gold.

However, demand across Asia is reducing, having a dampening effect on prices.

Platinum’s supply comes from two main sources: primary mining output and recycling – which typically comes from end-of-life auto catalysts and jewellery recycling. Over the last five years, between 72-77% of total annual platinum supply has come from primary mining output. That situation is starting to shift.

Platinum’s diverse other industrial uses account on average for just over 20% of total global demand.

Over the same period, global annual jewellery need has averaged 34% of

Many modern vehicles are built on green credentials, using technology like catalytic converters AFRICA INDUSTRY MAGAZINE Issue 02 29

p28-33 AI_Mar16_RBPlatinum.indd 29

21/03/2016 10:18

ROYAL BAFOKENG PLATINUM

total platinum demand. Investment is the smallest category of platinum requirement and also the most variable over the past five years, ranging between 2-11% of total demand.

Business model

Aspirations ■ Ensuring the safety of all staff and communities ■ Effective leadership ■ Technical strength and depth ■ Investment in training and development

The model is based on the six capitals – financial, manufactured, human, social and relationship, natural and intellectual – and Royal Bafokeng Platinum’s approach, which affects the quality and availability of our stock of capitals.

Financial position ■ Strong cash flow generation ■ Ungeared balance sheet

Supporting the strategy ■ Merensky bias ■ Shallow depth mines ■ 60 years life of mine ■ Prime location on the western limb of the Bushveld Complex ■ Strong cash flow ■ Ungeared balance sheet

Governance ■ Complying with and exceeding the requirements of the Mining Charter ■ Complying with the JSE Listings requirements ■ Applying principles of King III ■ Complying with all other relevant legislation

Risk management ■ The enterprise risk management framework applied across the business

30 AFRICA INDUSTRY MAGAZINE Issue 02

p28-33 AI_Mar16_RBPlatinum.indd 30

21/03/2016 10:18

MINING & RESOURCES

QUALITY HOMES at competitive prices Stakeholders ■ Engaging with and responding to all stakeholders

Double D & G is a highlycommended residential property development and construction company, based in the platinum city of Rustenburg, South Africa.

Social responsibility ■ Community investment Environment and community responsibility Royal Bafokeng Platinum’s modern outlook is underpinned by a commitment to the environment and its local communities.

It has already built over 400 homes, mainly for its workers, and has another 3,000 in the pipeline.

The company is also urging further efforts involving the international community, the South African Government, businesses and other stakeholders, to embrace carbon reduction. A company spokesman explained: “We recognise that climate

E

stablished over 12 years ago, the company meets the housing needs of this rapidly expanding region by providing quality-assured homes at competitive prices.

Double D & G identifies development opportunities, effectively markets and delivers housing solutions of the highest standard, and has the financial capacity and skills to take on the most challenging of building projects; cementing its position as the premier supplier of quality.

Royal Bafokeng Platinum Limited (RBPlat), a premium platinum group metals (PGMs) producer, chose Double D & G as the implementation partner to deliver housing infrastructure as part of the RBPlat Employee Housing Scheme. Intended to deliver more than 3000 new homes for RBPlat employees and their families, it is considered to be a flagship housing project within the South African platinum mining sector. www.ddandg.co.za

AFRICA INDUSTRY MAGAZINE Issue 02 31

p28-33 AI_Mar16_RBPlatinum.indd 31

21/03/2016 10:18

ROYAL BAFOKENG PLATINUM

change is an important global and local issue that requires urgent attention from all members of society. As a platinum group metals producer, we realise that our activities have an impact on climate change, through the production and release of greenhouse gas emissions which contribute to global climate change.

“Climate change has the potential to alter the environment in which we operate through increasing incidences of extreme events and slower changes

to climate patterns, that could impact on our ability to operate safely and continue to support our stakeholders.

“Royal Bafokeng Platinum therefore encourages all leaders of South Africa and other nations to take a stand and, together, build expertise, capacity and resilience strategies, to ensure adaptation to climate change brings benefits for us and future generations.

“We therefore call upon all parties to reach an agreement on a global carbon price, to provide clear direction in the

interest of both local and international business stability and the transition to a low carbon economy.

Royal Bafokeng Platinum also called on developed countries to provide the technical and financial support required by developing countries, including South Africa, to respond appropriately to climate change. In doing so, it supports the need to increase rapidly the contribution to the Green Climate Fund and for there to be a transparent and efficient means of disbursement and allocation.”

Addressing the causes and adapting to the impacts of climate change is core to the company’s strategy, which seeks to deliver ‘More than Mining’, by creating economic value for all shareholders.

Royal Bafokeng Nation The Royal Bafokeng tribe is justifiably proud of its claim to be the most

32 AFRICA INDUSTRY MAGAZINE Issue 02

p28-33 AI_Mar16_RBPlatinum.indd 32

21/03/2016 10:18

‘‘

‘‘

We recognise that climate change is an important global and local issue that requires urgent attention.

Royal Bafokeng Platinum spokesman

successful community investment initiative in the world.

Since platinum was discovered on its land in 1925 it has waged a battle with industrialists and corporations eager to cash in. But this battle has been dubbed ‘lawfare, not warfare’ as the Nation has used legal means and clever strategies to disarm the colonials and their Afrikaaner allies.

The result of decades of turmoil means the Nation receives royalties on all mining activities it doesn’t operate itself. It has established a trust to control its activities as well as administrative, operational and investment divisions.

In the past, the emphasis was on relieving native peoples of their rights – now the Nation is regarded as a flagship example of how the indigenous population can retain power over its own destiny.

Around 150,000 people inhabit 29 villages spread over 1200 sq km of land in the northwest of South Africa and have assets valued at $4bn. Of course, since the rush for mining started in the 19th century, many non-native Bafokeng have settled in the area.

During its turbulent recent history, the father of the current King, Kgosi Leruo Molottegi, was exiled, but when apartheid fell, the Nation took control of its natural assets.

It owns Royal Bafokeng Platinum and has a 13.16% stake in Impala Platinum – the company that commandeered much of the Nation’s assets back in the 1980s.

The Royal Bafokeng Administration invests millions of dollars in schools and public services and the vast majority of

people now have access to clean piped water and electricity.

King Kgosi said: “As with many people in the age of colonialism, our history of land ownership is one of having to fight to regain and retain something that was already ours. We decided to use lawfare, not warfare.

“We have, by no means, achieved our goals. This cannot be done by money alone. We are committed to ensure that our ownership of mineral resources enables us to walk this long and arduous journey.”

Black empowerment RBplat is a black-owned and controlled producer, which originated from a joint venture between Anglo American and the Royal Bafokeng Holdings. In 2010, via restructuring, RBPlat obtained a majority interest and was listed on the JSE. RBPlat mines PGMs in the Merensky and UG2 reefs on the Boschkoppie Styldrift and Frischgewaagd farms, in the Rustenburg area, which have been identified as hosting the last undeveloped Merensky reef on the western limb of the Bushveld Complex. RBPlat’s assets are the only significant shallow, highgrade Merensky resources and reserves still available for mining in South Africa.

Because the Royal Bafokeng

MINING & RESOURCES

PGMs Platinum group metals (PGMs) are found as a compound, which includes six pure metals with high melting points: platinum, palladium, rhodium, iridium, osmium and ruthenium, as well as gold and base metals, such as nickel, copper and cobalt. In addition to their oxidation and reduction properties, these metals have the ability to stay stable at high temperatures and are extremely resistant to corrosion.

Platinum is an excellent raw material and catalyst for manufacturing processes due to its distinctive chemical and physical properties.

Platinum and other PGMs are used in a number of industrial processes and commercial applications; in flat panel monitors, glass fibre, medical tools, computer hard drives, nylon and razors, among others.

The largest users of PGMs are automotive catalytic converter applications, that reduce pollution by treating exhaust gas before it leaves a car.

Nation, through its investment arm Royal Bafokeng Holdings (RBH), has a 52.53% investment in RBPlat, it not only complies with black economic empowerment requirements, but exceeds them. ■

Chaneng community garden

AFRICA INDUSTRY MAGAZINE Issue 02 33

p28-33 AI_Mar16_RBPlatinum.indd 33

21/03/2016 10:18

ROYAL BAFOKENG PLATINUM

A commitment to QUALITY

An INTERNATIONAL reputation

Royal Bafokeng Platinum’s business model is built on the best quality levels it can attain, and MDM Engineering, a leading name in project studies and management, is one of its key partners.

Fasken Martineau is a leading international business law and litigation firm, with offices around the globe.

M

F

DM has completed bankable feasibility studies on important RBPlat projects Styldrift 1 and the Merensky Concentrator.

MDM’s executive director George Bennett said the company is committed to excellence: “We pride ourselves on our ability to provide clients with a complete package that delivers on both cost efficiency and performance.”

MDM has a strong track record on projects across Africa, and also has a global reputation, recently undertaking work in Mexico and Brazil. Its standing in the mining world has been enhanced following a merger with global engineering operator Foster Wheeler in late 2014.

Mr Bennett explained: “This has given us additional balance sheet support as well as enabling us to retain the brand name. Our attention to detail and lateral problem solving skills provide us with technical innovation and unlock superior economic value for our clients.”

asken Martineau provides strategic advice to a broad range of clients, including close to half of the Fortune 100 companies, as well as medium and small companies, government agencies and regulatory authorities.

Expertise is offered in both common and civil law, in English and French. Many of its lawyers and staff are also fluent in many other languages spoken worldwide.

Awards The International Who’s Who of Business Lawyers named Fasken Martineau the 2015 Global Mining Law Firm of the Year, a recognition it has received seven times in 10 years.

FASKEN MARTINEAU Inanda Greens, 54 Wierda Road West, Johannesburg 2196.

Tel: +27 11 56 6244m

Grow With Us KHULA Fleet was established in Feb 2012 and had a vision of forming the first 100% Level 1 BBBEE Fleet Management Company in South Africa.

Our Services • Sourcing and Purchasing • Finance and Leasing • Maintenance Management • Fuel Management • Traffic Fine Management

• Management Information • Relief Vehicles (Short Rental) • Vehicle Disposal • Vehicle Tracking

The founder Darren Pillay has extensive commercial business and relevant industry experience. We are of the opinion that the South African Fleet Management Industry is dominated by large businesses and that the industry is receptive for a small business entrant, who would be able to be nimble, innovative and unique in its customised product offerings, focusing on the customer’s unique needs as its key priority.

www.khulafleet.co.za darrenp@khulafleet.co.za

34 AFRICA INDUSTRY MAGAZINE Issue 02

p34-35 AI_Mar16_2xAdvertorials.indd 34

21/03/2016 10:17

AFRICA INDUSTRY MAGAZINE Issue 02 35

p34-35 AI_Mar16_2xAdvertorials.indd 35

21/03/2016 10:17

JOHANNESBURG WATER

Water chiefs battling DROUGHT and VANDALS The city of Johannesburg’s water company has been urging more use of boreholes, amid the country’s lowest levels of rainfall in more than 100 years.

in affluent areas H ouseholders and other organisations like

golf clubs have been tapping into groundwater to make up for the shortages. Although several provinces have declared emergencies, the National Government has been loathe to do so, hoping that rain will relieve the pressure.

But the seriousness of the situation is also worsened by the plague of thefts and acts of vandalism disrupting supplies. More than 500 public water metres a month are taken, or damaged.

This deluge means disruptions to other citizens in many parts of the city and its surroundings.

But drought remains the most pressing problem. Johannesburg Water has teamed up with the Borehole Water Association (BWA) to encourage the city’s residents to switch to borehole water, to mitigate the crippling drought.

Both have inked a Memorandum of Understanding to promote the use of alternative water to mainstream supplies.

Member of the Mayoral Committee for Environment and Infrastructure Services, Councillor Matshidiso Mfikoe, called on residents to play their part: “We are a water-scarce country and everyone has a responsibility to save

this scarce resource.

Boreholes are a component of the water mix the City is exploring.

This includes harvesting ground and rainwater, and recycling it. We’re looking at innovative ways to save water.”

Ten well-off areas have been targeted, as the cost of sinking a single bore is between R30,000 and R50,000. There are already 13,500 boreholes in the city, with more in the pipeline.

Organisations such as parks, golf clubs and schools are among those that are being encouraged to participate.

South Africa is one of the biggest users of water. The world average is 175 litres per person per day, but in South Africa it’s 235 litres per person per day and while in Johannesburg it’s 300 litres per person per day.

The water company says education about preserving water is a priority. The challenge for Gauteng, for instance, is that it is a populous province, with five million people living in Johannesburg.

Ageing infrastructure and unpaid water debt are major challenges.

The goal is to close the gap between demand and consumption.

Already 572km of the 11,000km of water pipes have been replaced, with effluence, acid mine drainage and

recycling also on the agenda.

In South Africa, groundwater accounts for 13% of the country’s total water use, but geographically, two-thirds of the country relies on this resource.

Around 300 towns and villages rely solely on groundwater. These are places that have no other source of water available. Their water comes out of the ground, through a combination of springs and boreholes.

Research by the Water Research Commission has found that the country has an estimated 10 million cubic metres of renewable groundwater. In a normal drought, this drops to seven million, but the current drought has dropped reserves to such a low level that nobody knows how much is left.

36 AFRICA INDUSTRY MAGAZINE Issue 02

p36-39 AI_Mar16_Jo'burg Water.indd 36

21/03/2016 10:16

Resources flushed away on washing Around 10% of purified water in Johannesburg is consumed for drinking with the rest being used to water gardens, wash cars and clothes, as well as for bathing.

Johannesburg Water’s Managing Director Lungile Dhlamini says this practice has to end. His advice is to drill a borehole, where possible, to avoid water restrictions and to cut costs.

Water savings of between 60% and 80% can be realised for an average, middle-income household, if the borehole water is used for gardens and other irrigation purposes.

‘‘

‘‘

The Government has traditionally relied on people’s goodwill to hand over that information. There is no national control over the drilling of individual boreholes, unless a municipality has a specific bylaw to that effect. Legislation only kicks in when it comes to the industrial use of borehole water. In effect, anyone can drill a hole in the ground and suck up as much water as they want.

MUNICIPALITY

South Africa is one of the biggest users of water

“A borehole is an investment which enhances your property asset,” he said, adding that using boreholes can result in large savings on water bills.

Dhlamini announced that Johannesburg Water had been cooperating with the BWA for the past 18 months in terms of forging a partnership to encourage residents to drill boreholes.

The association conducted a hydrogeological survey of total township water demand – or kilolitres used per day – within the city of Johannesburg, to get an idea of groundwater use.

Dhlamini said South Africa has been classified as a water-stressed country, and Gauteng and Johannesburg are not exceptions.

“However, now we have proper and current hydro-geological data, to assist households who can afford to drill boreholes and to make informed

There is no national control over the drilling of individual boreholes, unless a municipality has a specific bylaw to that effect

decisions in encouraging responsible use of groundwater,” he said.

Johannesburg Water will assist households with the registration of their boreholes, as required in terms of the National Water Act. Although it is difficult to ascertain costs, the average price of drilling is about R1,000 per metre. Holes can be between 36m to 120m, depending on location and geological conditions.

Lungile Dhlamini

AFRICA INDUSTRY MAGAZINE Issue 02 37

p36-39 AI_Mar16_Jo'burg Water.indd 37

21/03/2016 10:17

BOREHOLE FACTS ■ There are currently only 13,500 boreholes in use around the city of Johannesburg.

■ In most areas of Gauteng, you do not require permission to install a borehole.

■ Once installed, all boreholes must be registered in compliance with the National Water Act of 1998.

■ Borehole water should not be used for drinking until tested.

■ Borehole water can be used for swimming pools.

■ Most wells can supply more water than a customer needs. Professional advice on this should be sought before drilling.

■ Most boreholes will continue supplying water for more than 40 or 50 years.

‘‘

The costs can be recovered within three years for those consuming large amounts of water.

“Boreholes,” said Dhlamini, “cannot be drilled everywhere – it all depends on the geology of the land, and that, too, determines the costs.

“In the past, the domestic water borehole drilling history in South Africa has had a chequered history.”

This has mainly been attributed to a combination of the following factors:

‘‘

JOHANNESBURG WATER

Should a national disaster be declared, emergency relief funds would be released from the National Treasury to eligible farmers Jannie De Villiers, CEO, Grain SA

spills, contaminated run-offs from impervious surfaces and failing sewage-treatment systems.”

six wastewater treatment plants, and serves 4.5m customers.

Grain production fears

Thieves and vandals also causing water cuts Johannesburg Water has an aging pipe system that requires billions of rands in investment. However, the situation is made even worse by some of the residents, who steal and damage more than 500 water metres every month, causing cuts and disruptions.

It is estimated that around half of the mains system still needs replacing, equivalent to hundreds of kilometres of pipework.

The independent utility, whose sole shareholder is the city of Johannesburg, has to maintain 89 reservoirs, 28 water towers, 10 depots, four laboratories and

South Africa’s largest grain producer, Grain SA, has reduced its forecast for maize imports but is still urging the Government to declare the drought a national disaster.

The company says that five out of nine provinces have been tagged disaster zones, but it needs to be an officialy recognised national disaster in order to release relief funds.

Chief Executive Jannie de Villiers said: “We need the leadership to declare it as a national disaster, so that the process can be triggered.

Should a national disaster be declared, then emergency relief funds would be released from the National Treasury to

■ Lack of information about all matters to do with drilling and construction of the borehole and the fact that, in the past, there were no codes of practice, or standards for the drilling industry.

This situation led to poor workmanship in the industry.

■ The problem of choosing costeffective and professional contractors.

The one downside of using borehole water is that it has to be regularly tested for contamination and the pumps have to be regularly maintained.

“Borehole water is generally not contaminated,” said Dhlamini, “but it can become so through chemical 38 AFRICA INDUSTRY MAGAZINE Issue 02

p36-39 AI_Mar16_Jo'burg Water.indd 38

21/03/2016 10:17

MUNICIPALITY

eligible farmers. However, any funding would probably come too late to secure the future of farmers currently on the brink of going bankrupt, or selling their holdings,” De Villiers said.

Farmers of livestock have been urged by the Government to cut down the sizes of their herds as the drought has scorched grazing land, while the predicted 2016 maize harvest is expected to fall 25% from last year, to 7.44m Praying for rain Southern Africa is currently in the grip of an intense drought, that has expanded and strengthened since the earliest stages of the 2015-2016 agricultural season – driven by one of the strongest El Niño events of the last 50 years – says the United Nations’ Food and Agricultural Organisation.

Across large swathes of Zimbabwe, Malawi, Zambia, Mozambique, South Africa, Botswana, and Madagascar, the current rainfall season has, so far, been the driest in the last 35 years. Agricultural areas in northern Namibia and southern Angola have also experienced high levels of water deficit.

Much of the southern African subregion has consequently experienced significant delays in planting and

very poor conditions for early crop development and pasture re-growth.

In many areas, planting has not been possible due to 30 to 50 day delays in the onset of seasonal rains, resulting in widespread crop failure.

Although there has been some relief since midJanuary in certain areas, the window of opportunity for the successful planting of crops under rain-fed conditions is nearly closed.

Even assuming normal rainfall for the remainder of the season, cropwater balance models indicate poor performance of maize over a widespread area.

The combination of a poor 20142015 season, an extremely dry early season and

forecasts for continuing hot and drierthan-average conditions through mid2016, suggest a scenario of extensive, regional-scale crop failure. ■

AFRICA INDUSTRY MAGAZINE Issue 02 39

p36-39 AI_Mar16_Jo'burg Water.indd 39

21/03/2016 10:17

NAMPAK

PACKAGING GIANT’S drive for new markets Africa’s leading producer of cans and packaging Nampak is pushing forward an agenda for cultural change as it seeks new market opportunities.

South African-based T heconglomerate Nampak is eyeing fresh challenges in sub-Saharan markets as well as driving forward a cultural change within the organisation.

Declining revenue in its home market has triggered a rethink within the company on how best to combat the business hurdles going forward.

Last year, sales remained buoyant, thanks to growth in Nigeria and Angola, but losses in the home-based glass division and increasing costs concentrated the minds of company chiefs. However, the growth potential of a rapidly urbanising population means investment is still required to meet demand.

Nampak intends to expand through greenfield investment and acquisitions in metals, glass and plastics. In addition, it has been reducing the number of transport suppliers it is dependent upon.

Chief executive Mr. André Marinus de Ruyter said: “We are driving cultural change at Nampak to create a more supportive, collaborative and internally aligned operating company that performs as a single unit, that can make better, buy better and sell better.”

He says the foundation stones have been laid for a more robust

performance following restructuring charges of R244m.

“From an operational perspective, we have resolved the difficulties at our Glass operation. This division is now performing according to expectations.

It had a significantly improved second half of the 2015 financial year, and the first few months of the 2016 financial year have been profitable. We are confident that Glass has turned around and will deliver profits to the bottom line.”

Spoilage concerns at its Bevcan aluminium beverage can lines in Springs continue to improve, and would not have a material impact on Nampak’s earnings in the 2016 financial year.

Last year, revenue and profits outside South Africa increased substantially by 43%, although foreign exchange control issues impacted on operating profits. The controls represent a hurdle on liquidity from Nigeria and Angola, although the company managed to repatriate six million dollars a month.

There has also been a trimming of group operations, with sales of the corrugated, tissue, flexible, recycling and sacks divisions. Further cost management and operational efficiencies were carried out.

During the year, Nampak spent R2.2bn on new equipment. There was also an

increase in production at the group’s beverage can businesses, in particular Bevcan Nigeria and Bevcan Angola.

Can-do

The pace of business change has led to new developments, particularly in the replacement of manufacturing tinplate cans to aluminium.

A high-speed aluminium line was introduced at the Springs factory.

This was designed to keep up with technological demands, customer focus and environmental impact.

Cans in the international market are mostly made from aluminium so it was an inevitable move. This also helps improve the recycling rate of beverage cans across South Africa. The aim is to achieve levels seen in Brazil where there is a collection rate of 98%.

A company spokesman said: “Aluminium is already the preferred medium for beverage cans

40 AFRICA INDUSTRY MAGAZINE Issue 02

p40-43 AI_Mar16_Nampak.indd 40

21/03/2016 10:16

MANUFACTURING

internationally. Globally, 85% of all beverage cans are made from this material. New aluminium can lines are capable of running eight can sizes and produce cans at speeds of up to 3000 cans per minute, as opposed to the 1600 steel cans currently produced per minute.

“The decision to move to aluminiumbodied cans was a natural progression due to the inherent advantages the conversion will hold for the economy, the beverage industry, consumers and the environment.”

In addition, the material cost is transparent, whereas steel is price volatile. Aluminium also weighs 60% less than steel resulting in reduced transportation costs.

The conversion to aluminium will also result in a significantly improved carbon footprint status. Approximately 10% less energy will be used in the manufacturing process, due to no external coating required, only one bank of spray machines will be used, only one oven is used and conveying in the production line is reduced by two thirds, which saves a lot of electricity.

Sister company Collect-a-Can is involved with recovery and recycling.

Currently the recycling rate of all beverage cans recycled in South Africa is estimated at 72%, significantly more than any other beverage format in South Africa.

Collect-a-Can has been in operation since 1993 and was one of the first recycling companies in Southern Africa. Today, there are over 220,000 otherwise unemployed, informal collectors who earn a living by collecting cans.

A new interactive website designed to help township businesess with their customers has been launched by Nampak Bevcan. The website, cando. sa.com, according to the company, is mobile compatible and allows township outlets to upload their business’ profile free of charge, advertise online and communicate with their customers.

Through the site, township business owners who do not have websites now

have an opportunity to create an online presence to generate awareness and interest in their businesses. The website also offers outlets that are already active on social media and have their own websites, exposure to a larger market.

Collect-a-Can changes Southern Africa’s can recovery and recycling organisation, Collect-a-Can, is streamlining and restructuring operations.

“Collect-a-Can is still committed to can recovery in the whole of southern Africa and will continue to operate in, and service, the Cape region,” says Zimasa Velaphi, Public Relations and

Marketing Manager at the company.

However, Collect-a-Can assures its local partners and clients that its efforts to protect the environment and educate and uplift the Cape communities will not be negatively affected by this decision.

“We have always worked closely with our Collect-a-Can representatives and

PROUD HISTORY Nampak is Africa’s largest diversified packaging manufacturer by volume and revenue. It has thousands of employees across state-of-the-art facilities in Africa and the United Kingdom.

1920s – Cardboard boxes made in South Africa.

1930s – Metal Box incorporated in South Africa.

1940s – Amalgamated Packaging Industries (API) was one of South Africa’s leading packaging companies. Metal Box South Africa listed on Johannesburg Stock Exchange.

1950s – Metal Box and other packaging companies grew organically.

1960s – National Containers and National Packaging were major packaging companies.

1968 – Nampak (National Amalgamated Packaging) formed through acquisitions. Nampak listed on Johannesburg Stock Exchange.

1970s – Nampak bought by Reed Corp and sold to Barlow Rand.

1980s – Nampak acquired 51% of Metal Box in 1983 and 100% in 1988.

1990s – Expanded into UK through acquisition of BlowMocan. Expanded into Europe through acquisition of Plysu plc. Acquired Crown Cork South Africa.

2002 – Acquired Crown Cork’s operations in Anglophone Africa. Acquired Malbak Limited.

2005 – Joint venture with Wiegand-Glass.

2006 – 10% of shares sold in BEE transaction.

2012 – Acquired the remaining 50% shareholding in Nampak Wiegand Glass from Wiegand Glass.

2013 – Acquired remaining shares in Packaging Industries Malawi.

2014 – Alucan acquisition in Nigeria successfully concluded. Nigeria plastic closures line for still water and carbonated soft drinks is commissioned.

Cartonnes and Labels division sold. Third Furnace at Nampak Glass is opened.

Plants supply a range of markets: ■ Processed foods ■ Sauces ■ Baby foods ■ Wine and spirits ■ Carbonated soft drinks ■ Cordials and concentrates

AFRICA INDUSTRY MAGAZINE Issue 02 41

p40-43 AI_Mar16_Nampak.indd 41

21/03/2016 10:16

NAMPAK

partners to help deliver on local can recovery needs and maintain our Cape regional footprint. For 23 years, Collect-a-Can has been at the forefront of minimising the negative impact of used metal cans on the environment and we will continue to do so going forward”, said Velaphi.

Black empowerment With the introduction in 2016 of the Department of Trade and Industry’s new Codes of Good Practice, Nampak – like many other companies in South Africa – faces a significant downward adjustment to its B-BBEE (Broad-Based Black Economic Empowerment).

In 2015, black ownership of Nampak was 32.92% and black female ownership was 11.40%. The B-BBEE ownership structure that was established in 2005 matured on 30 September 2015. Most of the

participants in this structure will retain their shareholding, while some are electing to trade their shares.

The group is considering its approach to ownership during 2016, once the current fluid situation around ownership settles.

Nampak’s target is for 60% black representation at management level in its South African operations. In 2015, the actual black management representation achieved in our continuing operations was 59%.

A spokesman said: “For 2015, our target was for 32% female representation, which we achieved.

We continue to grow our female

representation through the disciplined injection of talent with particular focus on graduates and apprentices. As a manufacturing organisation, we have been unable to attract and retain female representation, having a negative impact on our rating in this category.

“Transformation is imperative for the company to deliver an environment which is conducive to equality, fairness and transparency. Within our employee base, we undertake to continually address any inequalities present with regard to race, gender and disability and to accelerate progress through skills development programmes and the injection of talent.” ■

PROLINE offers speedy solutions

When Africa’s packaging giant Nampak Bevcan wanted a highspeed canning plant, it turned to the standout choice – Proline Engineering.

T

he UK-based conveyor specialist set up a steel beverage can line, capable of handling 750m units a year.

A strict work ethic, reliance on

Zambian staff and forging lasting relationships with clients has driven the company forward.

That success in Angola persuaded the company to commission a further three aluminium can lines at Springs SA, and two at Rosslyn. The facilites can produce nine different can sizes at a swift 3,000 cans per minute, per line.

Proline is a metal packaging industry conveyance specialist, with a global reach and unparalelled expertise.

It offers a tailor-made service from design to manufacture, installation, and product support for a variety of product-handling equipment.

Director Gary Jones said: “We offer complete product handling systems.

We design, build and install conveying systems to optimise productivity on

behalf of our customers.

“We have a team of more than 50 staff, operating worldwide, to ensure the highest quality technical service through our years of experience.

“We have worked in over 60 countries around the world and are used to meeting and exceeding our customers needs and expectations.”

Proline manufactures mechanical, vacuum and magnetic conveyors, to customers express specifications. The company can create single modules, or equipment to integrate with existing manufacturing capabilities.

It is also experienced in getting equipment and engineers to any given location around the globe. This year, the company celebrates its 20th anniversary at its base in Manchester, UK, home of the industrial revolution. www.proline-eng.co.uk

42 AFRICA INDUSTRY MAGAZINE Issue 02

p40-43 AI_Mar16_Nampak.indd 42

21/03/2016 10:16

AFRICA INDUSTRY MAGAZINE Issue 02 43

p40-43 AI_Mar16_Nampak.indd 43

21/03/2016 10:16

ASTRA PAINTS

ASTRA’S colourful history Astra Paints continues to be the market-leader in Zimbabwe, under the ownership of the Kansai Plascon Group.

Japanese takeover in 2013 T heeventually led to Astra Industries

delisting from the stock exchange last year as it could no longer comply with ownership rules.

Kansai said its intention was to grow business for the long term across Africa in its various industrial divisions.

Astra Paints commenced business in Harare as Herbert Evans paint in 1947.

Through the years, it merged with other paint companies, like Titanium Paints, to eventually become Plascon Paints, whose majority stake was then acquired by the Government of Zimbabwe, through the Reserve Bank of Zimbabwe in 1983. The paint concern was then renamed Astra

Paints, in line with the larger group, Astra Corporation.

Astra Paints is the largest paint and protective coatings manufacturer in Zimbabwe, and commands a market share of about 44%.

Astra Paints has a technical partnership with Barloworld Coatings (previously known as Plascon).

Production of paints is done in both Harare and Bulawayo factories, where 232 staff are employed.

The company has more than 60 years experience in the manufacture and distribution of paints and coatings.

It also has a chemicals division, which distributes 400 products around the southern Africa region. They are found in adhesives, alcohol, foods, textiles, pharmaceuticals and plastics.

An alcohol distillery, that produces highquality, potable spirits and absolute alcohols, is jointly owned in Hippo Valley Estates.

Astra Industries will be re-branding its products following the acquisition.

Colourful heritage Astra has had an illustrious past, achieving ISO 9002 certification 2000 and, in 2003, upgrading to ISO 9001 certification.

The company boasts over 67 years experience in the manufacture and distribution of paints and coatings as well as allied products. Astra prides itself in the training and skills of all staff, amongst which are such skills as marketing, finance, human resources and paint technology, for key quality control, development and manufacturing staff.

Portfolio of products Astra manufactures a comprehensive portfolio of products that can be broadly divided into four categories.

Firstly, decorative paints, used in the painting and decoration of homes and offices as well as associated ancillaries.

Products include oil-based paints, among them, high-gloss enamel paints, eggshell enamel paints, red oxide metal primer and zinc phosphate primer.

Water-based paints are also decorative paints and these include super acrylic exterior/interior PVA, ceiling PVA white,

44 AFRICA INDUSTRY MAGAZINE Issue 02

p44-45 AI_Mar16_Astra.indd 44

21/03/2016 10:15

MANUFACTURING

super washable satin, double velvet luxury PVA and micatex textured coatings. Varnishes also fall under this category and include products such as clear varnish, wood coat clear varnishes and varnish stains.

The second category is that of industrial paints and coatings. These are paints used in industry for the finishing of industrial goods of high durability and include baking enamels, powder coatings, drum enamels, copon pipe and tank coatings, and bitumen paints.

Furniture paints and coatings are all used for the industrial manufacture of furniture. Products include plaseal base coat, reaction lacquers, colour coats and ancillaries like wood grain fillers.

Lastly, Astra also manufactures automotive paints as well as importing from Barloworld Coatings for the OEM and refinish markets. Brands include the Glosskote enamel, Fleetline enamel, grey surface primer, the acrylic 2K auto range, Barloworld’s Acryline 2K auto range and top-of-the-range Herbert’s Standox 2K auto range.

DISTRIBUTION & MARKETS INCLUDE: ■ Hardware outlets ■ Construction companies ■ Mines and government departments

Astra Paints is the largest paint and protective coatings manufacturer in Zimbabwe Technical back-up It is also noteworthy that Astra Paints offers technical services for all of these categories as well as boasting the best project assistance service in support of their paint and coatings products. Astra’s main competitor is Dulux Paints. There are also other small paint manufacturers, mainly concentrating on the lower end of the market, including companies such as Prestige Paints, Splash, Promac, Solid and Chroma Paints.

Astra has a technical agreement with Freeworld Coatings, the largest paint manufacturer in Africa. Freeworld

Coatings ranks in the top 35 coatings businesses in the world. Astra Paints is 80% reliant on imported raw materials, the balance being met by local supplies.

Hardware stores provide a wide distribution network for Astra Paints’ products.

Further, it operates a fleet of vehicles in both Harare and Bulawayo, that serve those two markets. Astra Paints’ customer mix – who account for 80% of the division’s turnover – can be grouped into three categories, namely stockists or hardware dealers, general industrial and automotive. ■

ASTRA’S MISSION Astra is a customer-focused group, specialising in chemical trading, manufacturing and distribution of quality surface coatings. The company is committed to creating superior shareholder value through:

■ Providing high-quality products and services

■ Collaborating with strategic partners within chosen markets

■ Recognising our social responsibility

AFRICA INDUSTRY MAGAZINE Issue 02 45

p44-45 AI_Mar16_Astra.indd 45

21/03/2016 10:15

ROLFES

Important announcement from ROLFES COLOUR PIGMENTS

Africa’s only pigment manufacturing operation is to close after 78 years.

R

olfes Colour Pigments in Johannesburg is shutting down its manufacturing department, due to increasing concerns about health, environmental and safety risks associated with hazardous products like lead and chrome.

A spokesman said: “We are extremely proud of the pigment plant in South Africa, and the enormous amounts of pigments we have

supplied over the last 78 years to customers all over the world, but the company and shareholders felt that it had to come to an end.

“We will continue to supply lead chrome, organic and iron oxide pigments to our customers by importing the products from China and India. We commit to keep stock of these products at our warehouses in Jet Park, Johannesburg. Projects will be run with customers that use the Rolfes lead-free pigments, to find the best possible replacement for every application used by our customers.

“We will also continue to manufacture our excellent range of pigment dispersions at our factory in Johannesburg. We offer a huge range of water-based and solvent-based

dispersions for both factory tinting and retail tinting. Recently added to our product basket is a full range of low-VOC and VOC-free pigment dispersions – also for both factory and retail tinting.

“We will continue to supply our top-quality, anti-corrosive products, like strontium chromate and zinc phosphate, and plan to add some new environmentally-friendly products to our basket in the near future.

“Our qualified and well-experienced laboratory staff will continue to ensure consistent and good quality products, and our experienced colour laboratory staff will design and support new colour data bases for both factory and retail tinting. We will also continue to offer customised colour cards based on the NCS colour system.

To ensure we complete the circle, we also offer training and support on tinting systems and technical advice on all our products.”

46 AFRICA INDUSTRY MAGAZINE Issue 02

p46-47 AI_Mar16_Rolfes.indd 46

21/03/2016 10:15

AFRICA INDUSTRY MAGAZINE Issue 02 47

p46-47 AI_Mar16_Rolfes.indd 47

21/03/2016 10:15

NU-LINE ELEVATOR PRODUCTS PTE LTD

ELEVATING BUSINESS to another level Nu-Line Elevator Products Pte Ltd have thousands of happy customers every day – it’s just that they might not realise it! provides lifts T heandcompany escalators to high-profile,

high-footfall locations, like the Morning Glen shopping centre and Cape Town Airport. But it’s also an unobtrusive business – meaning that it often only gets noticed when products occasionally need attention.

And that’s a pity, as Nu-Line has got

a great story to tell, with its emphasis on training local people to the standard required by a company that prides itself on manufacturing excellence.

It also custom makes each piece of equipment, rather than importing items like many competitors.

Maybe it’s Nu-Line’s humble beginnings, from a single workshop in

1990, that has led to the creation of homegrown pride. The company and its workforce are united in their approach.

As the company explained: “We have been manufacturing and installing elevator products in South Africa since 1990 and guarantee that our products are manufactured from the best quality materials, with an emphasis on

48 AFRICA INDUSTRY MAGAZINE Issue 02

p48-51 AI_Mar16_Nu-Line.indd 48

21/03/2016 10:33

MANUFACTURING

The Morning Glen Shopping Centre is a prime example of how Nu-Line products can be utilized in a retail development excellent workmanship and safety.

“All products comply with the country’s regulations and Nu-Line is a member of the Independent Lift Association of South Africa, which helps regulate the elevator industry.

“We have a complete service department infrastructure that can offer maintenance on all our products installed throughout South Africa.

“Our products are already installed in Tanzania, Angola, Namibia, Zimbabwe, St Helena, Nigeria, Mozambique and Israel. With a strong technical team, we can offer comprehensive product support and after-sales service. The design team creates detailed product layout and installation drawings, comprehensively outlining all building and electrical requirements.”

Products Passenger elevators A full range of passenger elevators are available across the entire elevator design and price range. Interior options are endless as custom made products can incorporate special design themes and architectural features.

Key features include a load capacity from 300kg to 5000 kg, traction with counterweight, as well as glass, steel and coated finishes. Car shapes can be square, rectangular, circular, or to a custom design.

Goods The goods hoist is designed to be robust and is able to work in the most industrial conditions. A solution can be offered to transport anything from tea trolleys to cars.

Funiculars A funicular is the ideal solution to gain

access on various external levels on steep terrain. Any angle of incline can be accommodated. Extended glass panels allow more vision during a scenic ride.

Escalators The main function of an escalator is to connect the different floors of a building, thereby allowing easy access.

Escalators are used in business centres, shopping malls, railway stations and other public spaces.

Projects Woolworths is regarded as an upmarket retail store throughout South Africa and offers high-quality products. Likewise, they require a specified operating system and infrastructure for each store.

Elevators are manufactured to the Woolworths specification, with extra car height and floor area to enable the loading of larger items.

The Morning Glen Shopping Centre is a prime example of how Nu-Line products can be utilized in a retail development. The scenic glass elevator is positioned in the centre of the shopping mall offering travellers a panoramic view of all the floor levels.

The goods passenger elevator serves to transport both people and goods, while the goods hoists are more robust and are designed to accommodate the excessive loading and transport of merchandise to the various shops.

Cape Town airport A busy international airport needs to offer all options for transportation of goods and people. Nu-Line’s robust hoists are used to transport the suitcase trollies between the parking levels. The gun hoist is designed with AFRICA INDUSTRY MAGAZINE Issue 02 49

p48-51 AI_Mar16_Nu-Line.indd 49

21/03/2016 10:33

NU-LINE ELEVATOR PRODUCTS PTE LTD

‘‘

Our products are manufactured from the best quality material, with emphasis on workmanship and safety.

‘‘

special safety and security features for the transport of firearms. The platform lift is used by the office staff and also offers a solution for employees with restricted mobility.

Growth Company growth has been extremely strong, even at a time when world economies are struggling. In fact, yearon-year, sales have increased by around 20%, which in turn has led to further expansion of premises.

As has been mentioned, the company focuses on local labour skills, and this is important in a market that sometimes faces challenges when it comes to finding qualified technicians.

As a result, in-house training is a vital component at Nu-Line.

Health and safety training is also in place to educate company staff on key regulations, ensuring that work is performed safely and injury to employees or damage to equipment is prevented. Additionally, Nu-Line provides opportunities to the previously disadvantaged, so that they may benefit from staff training and the option to progress internally.

The company is also a supporter of ‘Learn to Earn’. This is an NGO that helps to train unemployed people in various life skills. They have two training centres – one in Khayelitsha, Cape Town and one in Hermanus – and Nu-Line have assisted them by providing the labour to install lifts in both facilities at no cost.

Originally in South Africa, both the building regulations and SANS regulations were not very thorough for

the design and requirements for the manufacturing of elevator products.

Over time, and with direct links to safety concerns, all of these laws have been amended, so that South African National Standards (SANS) are in line with the EN81 international standard.

Nu-Line has around 100 projects in progress across Africa and is pushing for more, and much of this comes from word-of-mouth recommendation and repeat business.

A fascinating history Elevators existed as far back as ancient Rome; Archimedes was building them in 336 B.C., and gladiators and animals

50 AFRICA INDUSTRY MAGAZINE Issue 02

p48-51 AI_Mar16_Nu-Line.indd 50

21/03/2016 10:33

MANUFACTURING

rode lifts to the Roman Coliseum arena

by A.D. 80. Of course, those early ‘elevators’ weren’t enclosed cars. They were simple platforms and hoists, typically used to perform tasks such as raising up water for irrigation or lifting heavy building materials.

These lifts were powered by animals, people, or even water wheels.

What we’re really talking about is the modern passenger elevator. The first one was built for King Louis XV in 1743 and was called ‘The Flying Chair’.

Installed on the outside of the King’s palace at Versailles, his elevator went from the first to the second floor.

Elevators became more common in the mid-1800s, during the Industrial Revolution, when they transported freight in factories and mines. These elevators were often based on the hydraulic system.

Another elevator design, and the one found most often today in passenger

elevators, uses a cable system, in which ropes raise and lower the car by means of a pulley and gear system.

OFFERS YOU A counterweight, raised and lowered at the same time as the car, works in COMPREHENSIVE RANGE OF: THE MOST much the same way as a see-saw and • MICROPHONE & COMPUTER helps to conserve energy. These•types COXIAL CABLES CABLES of elevators are easier to control, and • DOMESTIC • TRAILING CABLES buildings that have them consequently FLEX AND WIRE don’t need the extra room required by • PVC FLEXIBLE hydraulic systems.

• FIBRE-OPTIC CABLE CABLES By the 1850s, these types of elevators • SILICONE were powered by water pressure, or • MARINE AND steam, but still weren’t very common.

TEFLON CABLES These days, hi-tech elevators are a • DOUBLE GLASS world removed from these early efforts.

NICKLE The race to create the world’s tallest • MULTI-CORE Burj&Khalifa in Dubai and the Shanghai buildings has also brought challenges SCREENED Tower have smart lifts, able to zoom at in terms of elevators, with techniques UNSCREENED 4,000ft per minute. becoming ever more sophisticated. CABLES It All this involves technological is thought that in the near future there innovation, motors, highwill be ropless lifts able to41go sideways, Section Street, Paarden Eiland 7405,using PO Box new 386, Paarden Eiland 7420 Telephone: (021) 511 0262 • Fax (021) 511 4987 pressure air systems and powerful, slim as well as up and down.

Email: ros@jedelct.co.za magnet motors. ■ Showcase buildings such as the

CABLE SPECIALIST Nu-Line has

around 100 projects in progress across Africa and is pushing for more in a retail development

Cody Products provides

a service to the goods hoist industry, as a leading supplier of the locally manufactured Easy-Fold door, Full Mid bar Picket gate and the Simple lift gate.

The Easy-Fold door is available in Stainless Steel, Galvanised or Epoxy coated finish. The Picket gate is available in Painted or Zinc plated finish The doors and gates are manufactured to customer specified sizes and applications.

Office:+27 (0)11 660 5859 Cell: +27 (0)82 451 4607 Email: john@codyproducts.co.za www.codyproducts.co.za

7 Aster street, Boltonia, Krugersdorp, Gauteng, South Africa.

AFRICA INDUSTRY MAGAZINE Issue 02 51

p48-51 AI_Mar16_Nu-Line.indd 51

21/03/2016 10:33

sPAR DisTRiBuTion

SPAR Express

Inside a Malawi store

Distribution services SPAR-KLE Feeding the SPAR distribution network across Southern Africa is a mammoth task. It takes seven distribution centres and a huge fleet of vehicles and trailers to service more than 800 independent retailers operating under the famous SPAR brand. And, with expansion always on the agenda, it means a constant review and investment in technology and facilities.

T fundamentals of localism, but a he sPAR brand is based on the

national and cross-border distribution capability is key to its success. So therefore, the numerous grocery, liquor, DIY and pharmacy outlets are part of a large family and each is treated as such.

For instance, the seven distribution centres do not just deliver goods – they also get involved with marketing, promotions, financial advice and store development.

The ethos is to enable independent retailers to compete with other convenience stores as well as the larger retailers. It means that stores are put at the heart of the operation as well as the communities they serve. It also means that not just anyone will be allowed to open a SPAR; sourcing suitable retailers is an important part of the process.

That way, the power of the brand remains undiminished.

A great deal of work goes into ensuring that stores are part of the

fabric of each community they serve.

At the same time, the business is tuned in to the needs of the supply chain, so ongoing investment is crucial – including improvements to warehouse management software, RF scanning and more streamlined processes.

There have also been improvements in scheduling and routing telemetrics, to enhance performance of the distribution chain and keep costs down.

The vehicle fleet is constantly on the move, like busy ants working day and night. Stores need to be serviced around the clock, every day of the year.

This is particularly challenging when it comes to delivery of fresh produce and chilled goods, especially in stores many kilometres away.

Distribution centres There are six Distribution centres and one Build It centre servicing the large network of SPAR, Tops, Build It and Pharmacy at SPAR retailers.

Investment in warehousing and the supply chain is continuous, with the latest addition being a slow-moving goods shed being built at South Rand. Around 60% of supplies are direct and the remainder subject to drop shipment arrangements.

SPAR centres, comprising 250,000 sq metres of warehousing, serve

CENTRES ■ South Rand – 61,000sqm, serving 468 outlets

■ North Rand – 31, 460sqm, serving 308 outlets ■ KwaZulunatal – 57,000sqm, serving 378 outlets ■ Western Cape – 33, 550sqm, serving 315 outlets ■ Eastern Cape – 22, 680sqm, serving 225 outlets ■ Lowveld – 21, 400sqm, serving 123 outlets

52 AFRICA INDUSTRY MAGAZINE Issue 02

p52-57 AI_Mar16_SPAR.indd 52

21/03/2016 10:13

FooD & DRinK

Store servicing can be particularly challenging when it comes to delivery of fresh produce and chilled goods

South Africa, Namibia, Botswana, Mozambique and Angola.

Brisk trading

‘‘

SPAR continues to enjoy robust trading in an increasingly difficult environment.

In the last quarterly period to the end of January 2016, the group increased sales by 8.4% in South Africa, Built It sales were up 14.6% and liquor sales ahead by 12.5%.

The company said: “SPAR’s brands are well positioned to continue serving our diverse customers.

“The focus areas in South Africa for the year ahead include the opening of new stores across all brands, as well as supporting organic growth through further store refurbishments.

The group will continue investing in its warehousing and distribution capacity to support growth, with the slow-moving goods warehouse to be completed at South Rand, as well as commencing significant expansions to its Western Cape and Eastern Cape distribution facilities.

“SPAR’s business model, which is grounded in our voluntary trading relationship with our network of independent retailers, remains robust.”

Last year food inflation was low at

‘‘

Inside Malawi

In Malawi, ready-made meals are a popular feature for lunch and dinner

The ethos is to enable independent retailers to compete with other convenience stores as well as the larger retailers.

around 1%, due to the deflated cost of commodities. Consumer spending has also remained under pressure, particularly in the rural markets, so the group has continued to focus on competitive pricing.

Expansion SPAR International, the world’s largest voluntary retail chain, has been growing its influence across Africa by opening stores in Cameroon and Malawi. The expansion means it now operates in 10 markets on the continent and has increased its retail offer by 10% over the last five years. The store in Douala, Cameroon’s largest city – a 2,500sqm SPAR supermarket – was established with experienced local partner L’Atrium

Tobias Wasmuht (L) took over as CEO of SPAR International at the beginning of 2016 from Dr Gordon Campbell

S.A; a joint venture between two familyowned companies Dee-lite Sarl and Groupe ARNO. The company already operates 17 retail stores in Douala and the Capital city of Yaoundé, along with six distribution facilities across the country.

Planning is already underway on the next three SPAR sites in Cameroon, including a hypermarket in Yaoundé.

SPAR International’s new partner in Malawi, People’s Trading Centre, opened a 1,800sqm SPAR-branded store, bringing international best practice in terms of retail innovation and store layout to the local retail market. People’s Trading Centre has plans to open up to 10 new SPAR stores in Malawi over the next five years.

Before retiring at the end of 2015 SPAR’s International Managing Director, Gordon Campbell, said “Five years ago we identified the major potential for growth of the SPAR brand in Africa. Building strong partnerships, sharing international best practice, and adhering to the SPAR principles of focusing on freshness, quality, choice AFRICA INDUSTRY MAGAZINE Issue 02 53

p52-57 AI_Mar16_SPAR.indd 53

21/03/2016 10:13

sPAR DisTRiBuTion

Customers in Nigeria, keen to experience a new SPAR

and customer service, has meant that SPAR is now at the cutting edge of retail in the region. SPAR South Africa has been a key enabler of this expansion and has made a major contribution

Nigeria’s Port-Harcourt store is strong on service

SPAR RAISES FUNDS FOR CANSA

The revamp followed the passing of Liz Hook, wife of SPAR South Africa Group Director, Wayne Hook, who underwent cancer treatment.

With Wayne’s consent, the SPAR KwaZulu-Natal Distribution Centre organised a golf day in Liz’s memory to raise funds in aid of cancer. The funds raised on the day fell far short of the amount needed. The SPAR team agreed that a more creative solution was required and launched an impromptu telethon at the golf club, contacting SPAR suppliers and retailers. The team eventually managed to raise R1.9 million.

‘‘

54 AFRICA INDUSTRY MAGAZINE Issue 02

p52-57 AI_Mar16_SPAR.indd 54

become the first retail chain in Nigeria to offer a shopper loyalty programme that provides customers with exclusive offers and great value for money.

International brand SPAR is a stock exchange-listed company, with affiliated business in building supplies, pharmaceuticals, and liquor.

In 2014, SPAR Group Ltd bought 80% of BWG Foods Ltd in Ireland, holder of the licence for SPAR. BWG’s priorities for the year ahead include completing the full integration of Londis retailers into the portfolio.

‘‘

CANSA, a non-profit organisation that leads the fight against cancer in South Africa, has officially opened its re-vamped Mkhuhla House care home in Durban, thanks to a R1.9m makeover, funded by SPAR South Africa.

to the success across the African continent, sharing best practice and experience with new partners.

“Our partnership approach, as well as the flexibility and adaptability of our brand, has resulted in an offer that can meet the various needs of the modern African consumer.

“Recent developments in Cameroon and Malawi are an example of how success can breed success in SPAR, with established partners contributing their knowledge and expertise to make new market entry a great success.”

In addition to expansion in Cameroon and Malawi, SPAR has also grown its footprint in Nigeria with the opening of a new flagship store in Murtala Muhammed Airport in Lagos, following the highly successful hypermarket opening in Port Harcourt. SPAR Nigeria now operates seven stores and has

The focus areas in South Africa for the year ahead include the opening of new stores across all brands.

SPAR company spokesman

21/03/2016 10:13

FooD & DRinK

The SPICE of life Deli spices has grown in size and stature to become one of the most respected premier spice companies in south Africa.

T

SPAR Nigeria now operates seven stores and has become the first retail chain in Nigeria to offer a shopper loyalty programme

Brands remain well-positioned to continue benefiting from an improving Irish economy.

The Training Academy of SPAR South Africa continues

heir motto “People, Passion and Innovation” explains their dedication to creativity, quality, food safety and service. Deli Spices specializes in herbs, spices, blends, sauces, glazes, marinades, breading, soup bases and convenience foods.

Deli Spices 10,000sqm plant in the Western Cape now houses state-of-the-art equipment, training facilities, research and development laboratories and quality control facilities, to ensure all their products meet the high standards demanded by their clients. Deli Spices takes great pride in being the first spice company in South Africa to receive ISO accreditation. Currently they hold an SABS FSSC22000 accreditation certificate as well as Kosher and Halaal accreditation.

Their strong client relationships will always be the secret ingredient to their success.

DELI SPICES Western Cape Head Office 2 Bertie Avenue, Epping 2. Tel: +27 21 505 2000 www.delispices.co.za

Proud national supplier to SPAR for the past 25 years.

SUPPLIERS OF: Spices and Seasonings for the Meat Industry Natural Spices Home Meal Replacement & Quick Service Restaurant Solutions Catering Spices Natural, Collagen & Artificial Casings Functional Ingredients Butcher & Meat Processing Machines Butcher Requisites & Packaging 0861 SPICES (774237) | www.delispices.co.za |

AFRICA INDUSTRY MAGAZINE Issue 02 55

p52-57 AI_Mar16_SPAR.indd 55

21/03/2016 10:13

sPAR DisTRiBuTion

People’s Trading Centre has plans to open up to 10 new SPAR stores in Malawi over the next five years Customers enjoy SPAR’s ready-made meal selection

& Training Authority, and conducts training both on-site and off-site. The retention of middle managers targeted by the increasing competition, has been a focus. The training ensures that staff have the tools required to fulfil their roles and grow within the business.

Major announcement expected

to play a crucial role in developing the skills of retail and distribution employees.

The Academy is accredited with the Wholesale & Retail Sector Education

SPAR has announced that an extraordinary general meeting will take place in Durban. It says further details will be released, but is warning shareholders that the news may have an impact on securities trading.

A statement ran: “Shareholders are advised that the company has entered into negotiations which, if successfully concluded, may have a material effect on the price of the company’s securities. Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities, until a detailed announcement is made.” ■

THE SPAR PROMISE ■ 1000 exclusive brand products ■ Only the best and freshest ingredients ■ Products independently laboratory tested ■ ‘Double your money back’ quality guarantee

Keeping the SPARK alive for over 110 years For over 110 years, you’ve felt our presence, at home, at work and at leisure. The familiar warm scent of a matchstick burning out, or the perfectly polished school shoes your friends admired. it all started with The Lion Match company.

T

hrough quality and pride, The Lion Match Company has developed some of South Africa’s favourite home-care and lifestyle brands. From our iconic Lion Safety Matches to Lion Quality Shoe Polish, Lion Firelighters, Lion Strikers and Clearlite, we have succeeded in assembling an impressive array of brand names and products.

We won’t stop roaring We at The Lion Match Company remain up to date with acquisitions that are trusted, forward thinking

and innovative. In 2012, we took ownership of Nkunzi Unsgaard and Beige Holdings Ltd, housing these acquisitions and capabilities under the umbrella of The Lion Match Company.

This strategic decision cemented our position as a top industry contender in the FMCG arena.

the highest quality, crafted from several types of candle-making technologies.

We are proud to continue the legacy of such a trusted brand, affording us the opportunity to further leverage our expanded product basket within Southern Africa and beyond.

With continued efforts in research and development, The Lion Match Company will keep growing and innovating, retaining our status of household product excellence.

Did you know?

The Lion Match Company recently acquired Price’s Candles. With a legacy of over 100 years in the candle manufacturing industry, Price’s Candles offers household, decorative and scented candles. These are of

56 AFRICA INDUSTRY MAGAZINE Issue 02

p52-57 AI_Mar16_SPAR.indd 56

21/03/2016 10:13

4694_

Mining & Resources

CELEBRATING AFRICA FOR OVER

110 YEARS The Lion Match Company has been intertwined with South Africa’s and Africa’s history for the past 110 years.

We now have a portfolio of truly iconic South African brands.

We have grown as the country has grown, choosing acquisitions that have cemented our position as a top industry contender in the FMCG arena.

attic at ttic rush

www.lionmatch.co.za

Premium Brand AFRICA INDUSTRY MAGAZINE Issue 02 57

4694_LMC_african_industry_full_pg_ad_VSN 3.indd 1 p52-57 AI_Mar16_SPAR.indd 57

2015/12/15 PM 21/03/20161:47 10:13

NIGERDOCK NIGERIA PLC

NIGERDOCK faces up to oil price challenge

Chevron Agbami topsides

The falling oil price remains the biggest challenge to Nigeria’s prospects and its leading players, like Nigerdock Nigeria Plc. Uncertainty has already led to job losses across the industry, which is battling one of its biggest ever pricing downturns. heartbeat of the Nigerian T heeconomy is the coastal enterprise

zone of Snake Island, where Nigerdock Nigeria Plc is prominent. The shipbuilding, fabrication and training specialist recently launched the Sonam wellhead platform – the biggest ever topside created in the country, at 2,700 tonnes.

But the launch celebration was also a time for some tough talking as leading business figures and politicians gathered to mark the event.

At the sail and load out ceremony, Denzil Kentebe, executive secretary of the Nigerian Content & Development Monitoring Board, said it was imperative that industry stakeholders held firm to sustain jobs and capacity.

While praising Nigerdock in fabricating the topside, the executive secretary said: “While we celebrate these feats, we are mindful of the current economic environment, lull in business and threat to these capacities.”

The executive secretary said the company had recorded many landmarks on several projects, including modules fabricated on USAN and Ofon for Total, Abang and Itut topsides for ExxonMobil and Meren and Sonam topsides for Chevron.

“The capacity has not only been sustained, but increased over time.

Thousands of Nigerians have continued to be employed and trained. Nigerian suppliers have also been built up on the back of these projects and activities,” he continued.

But there have been severe warnings about the challenges ahead, alongside rumours that oil companies could sack 18,500 workers.

Even the Chairman of Nigerdock Plc and the Jagal Group, Mr. Anwar Jamarkani, at the ceremony bemoaned the slowing of orders. The Chairman said, “Over the years, we have invested millions of man hours in

Chevron Agbami biuy

Transocean Adriatic VIII refurb

58 AFRICA INDUSTRY MAGAZINE Issue 02

p58-61 AI_Mar16_Nigerdock.indd 58

21/03/2016 10:12

OIL & GAS

the training capacity, professional skills development and welfare of our workforce. But we need to do more. We are, therefore, concerned that projects that were originally scheduled for commencement are now being shelved, to the detriment of companies like ours.

“With no new projects on the horizon, companies may be forced to shut down and workers sent home. It is not our intention to send any more of our workers home,” he said.

The Chief Executive Officer of Shoreline Group – a Nigerian oil producer – Mr. Kola Karim, said recently that the firm planned to cut 35%, or 700 of its 2,000 staff.

Investment However, it is not all doom and gloom.

The excellence of Nigerdock and its facilities around Snake Island are still cause for considerable pride. More than $1bn is being poured into the area – one of the most important industrial sites in Africa.

The zone was established more than ten years ago to promote Nigeria’s emerging markets and has been strongly supported by investment from oil companies.

At the heart of this enterprise hub is Nigerdock, with its four operating divisions of offshore fabrication, pressure vessels, shipyard and worldclass training centre.

Nigerdock’s Shipyard Division is the largest facility of its kind in West Africa, with an outstanding history in the marine industry. It is specialised in the fields of ship building, repair, maintenance and refurbishment. It has a 25,000DWT graving dry dock, a 5,000DWT floating dock, quayside facilities and weatherproof multipurpose workshops. It has constructed over 30 passenger, steel hull ferries, aluminium pilot boats, tugs and barges, and has repaired over 600 vessels.

But it also has plans for more complex operations, such as rig refurbishment and building larger vessels at its Shipyard Division.

The shipyard management offers a high level of service and a worldclass training facility, focused on the areas of welding, pipefitting, plating and machining, rigging, safety, quality and first aid. It has the ability to train and test welders in all processes, in all positions and to any client’s requirements, whilst certifying to Lloyds, ABS and DNV standards.

Nigerdock has an aggressive investment program into new plant equipment and technologies.

It is also committed to the training of its workforce and the constant improvement of its systems and procedures.

Chevron Meji platform

Bonga FPSO

Facilities Nigerdock’s Offshore Fabrication Division specialises in the construction of topside modules, subsea manifolds, jackets, wellheads, satellites, process platforms, process piping, buoys, piles yokes and double joints. It also performs offshore installations of pipe spools, supports, platforms and heat shielding, including pipe coating and other complex installations.

The Nigerdock Training School trains offshore welders, grinders, fitters, blasters, painters, scaffolders and riggers – to the highest level.

Offshore logistics Snake Island Logistics is a major new development that serves as a support centre for offshore oil and gas projects.

It is situated at Snake Island Integrated Free Zone and some of the services it offers include logistics and materials handling, storage and shipping as well as aviation and marine services. The company is also developing a subsea technology and service park, which is to include facilities to host integrated project teams.

Nigerdock fabrication yard

Nigerdock’s Shipyard Division is the largest facility of its kind in West Africa AFRICA INDUSTRY MAGAZINE Issue 02 59

p58-61 AI_Mar16_Nigerdock.indd 59

21/03/2016 10:12

NIGERDOCK NIGERIA PLC

Technically ADVANCED… Trobatt Technical Company Limited is a solely-owned Nigerian company, engaged in electrical and instrumentation works. It also operates in the fields of civil, mechanical and cathodic protection construction and installation services, equipment supplies, and procurement services to the Oil & Gas, Manufacturing and Public sectors of the Nigerian economy.

T

he company has built a reputation for excellence and quality in the execution of the projects it undertakes, with its aim to deliver enhanced value to its clients and shareholders. Consequently, Trobatt

has emerged as a visible partner to leading organizations in the Oil and Gas (Upstream and Downstream), Power and Energy, Manufacturing, and Marine sectors of the Nigerian economy in its area of services.

Trobatt’s mission is to achieve a technological niche in the oil, gas, and related industries through the team work of a well-trained and highly motivated staff that is primarily focused on client satisfaction in service delivery.

The construction management team has vast construction build out experience, ranging from private residences, public use building/ facilities, oil and gas facilities, and

infrastructure projects. These successful experiences have proven that the construction management teams and systems put in place by Trobatt are efficient and effective.

By carefully managing information, people, equipment and materials, and working closely with the design engineers and quality management team, the qualified Construction Management Team ensures that all construction projects are executed successfully in a safe manner, on schedule and on budget. www.trobatttech.com

60 AFRICA INDUSTRY MAGAZINE Issue 02

p58-61 AI_Mar16_Nigerdock.indd 60

21/03/2016 10:12

Snake Island is 14km in length and 1.4km wide, is located opposite Tin Can Island Port, Apapa, and has immediate access to the open sea.

Snake Island Integrated Free Zone (SIIFZ) occupies 250 hectares of land covering approximately 4km of Snake Island shoreline, which is owned by Nigerdock. It was established in 2005, when approval was given for 250 hectares of land to be developed.

Chairman Mr Anwar Jarmakani says that, in the last three years, Snake Island has attracted direct investment to the tune of over $230m.

“The aim is to bring together, in one location, facilities and companies that can help achieve the vision of increasing Nigerian content in the oil and gas sector. A further goal of the zone is to serve as a major hub for improving capacity and capabilities within the country to world class standards. The ultimate vision, captured in our DISC concept, is to establish global competitiveness and ensure that Nigeria becomes a major source of supply across West Africa,” he explained.

He stated that despite daunting and enormous challenges, SIIFZ is consistently achieving its goals.

According to Mr Jarmakani, SIIFZ has developed a world class shipyard and, for the first time, attracted non-Nigerian vessels into its quays – for services including carrying out technical repairs and maintenance works not previously done in Nigeria.

Sonam Wellhead Project To improve supply and support the Government’s effort to reduce gas flaring, the Nigeria National Petroleum Corporation and Chevron Nigeria Limited announced the completion and load-out of the topside module of the SONAM Non-Associated Gas Wellhead Platform project.

The initiative will enable the delivery of up to 420m cubic feet per day of

gas from SONAM to the Escravos Gas Plant.

Chevron’s Director of Business Services, Mr Emmanuel Imafidon, explained: “The module was delivered as part of the domestic supply obligation.”

This also included construction training for 160 trainees, in fields ranging from welding and fitting to scaffolding.”

He also recalled that, less than 36 months after the steel cutting, the project is ready for load-

‘‘

Shell Bonga deepwater bouy

Total Usan FPSO

out, adding that, through partnership with Nigerdock and Hyundai Heavy Industries, the venture partners recorded a safety achievement of over 2.8m cumulative man-hours on the project.

The 2,700-ton Sonam NonAssociated Gas Wellhead Platform (Sonam NWP) was built by Hyundai Heavy Industries in partnership with Nigerdock in Lagos for the Nigerian National Petroleum Corporation (NNPC) and Chevron Nigeria Limited (CNL).

Mr Jamarkani explained that the platform has a height of 28m, a width of 40m and a length of 50m, making it the largest topside module ever built in Nigeria. Because of the volume of gas

Over the years, we have invested millions of man hours in the training capacity, professional skills development and welfare of our workforce.

‘‘

Snake Island

OIL & GAS

Chairman of Nigerdock Plc and the Jagal Group, Mr Anwar Jamarkani

the platform will produce, he said the project is a major milestone as it will provide feedstock for the much needed power generation.

He added: “The project will boost power generation ability and provide the much needed power for Nigeria’s domestic and industrial needs. It will significantly eliminate gas flaring from the project – in fulfillment of the Government’s gas flaring policy – and attract gas investment opportunities, thereby boosting this administration’s effort to diversify the economy from dependence on crude oil proceeds.

“The DSO project is a major milestone in the Government and industry’s quest towards achieving increased local content in the nation’s oil and gas sector. Over the course of the project, Nigerdock recorded several remarkable achievements leveraging Nigerian human and material resources, and maintaining its commitment to investment in equipment, infrastructure and technology.

“We are truly humbled to play a part in such landmark achievements, which will no doubt have a transformative effect on our country. However, we believe we can do much more and raise the bar.” ■ AFRICA INDUSTRY MAGAZINE Issue 02 61

p58-61 AI_Mar16_Nigerdock.indd 61

21/03/2016 10:12

SASOL

POURING OIL on troubled waters

Cost savings have helped energy giant Sasol in its battle against a depressed oil price and market volatility. A restructuring of its operations and reduction in headcount have all been part of the fight to weather the storm and lessen the impact on financial performance.

South African gas and T hechemicals company is also

facing additional difficulties in combating costs due to climate change.

But, despite the extremely challenging trading environment, there continues to be a strong business performance.

Naturally, there has been an impact on financial figures and half-year results are expected to show reduced profits and earnings per share.

Several strategies have been put in place to enable the company to survive and even prosper in these uncertain times. The world’s largest producer of liquid fuels has a savings target of R50bn over 30 months, has decreased manpower by 7% and capped non-

essential recruitment.

It is pressing ahead with a new complex in North America – the chemical industry’s biggest ever bet on shale gas, but another much more costly scheme on the American continent has been put on hold.

In addition, Sasol has concluded a major restructuring of its operating divisions across southern Africa and North America.

The energy and chemicals company has now been organised into a more streamlined business, with customerfacing units.

Active since 1950, Sasol has developed into an international player at the cutting-edge of liquid fuels,

chemicals and low-carbon electricity production. The company has been pioneering innovation for many years, particularly in countries requiring the conversion of hydrocarbons into liquid fuels and chemicals.

A spokesman said: “Sasol’s focused and strong project pipeline means we are actively capitalising on the growth opportunities that play to our strengths in southern Africa and North America.

Our focus is creating value sustainably and we are proud to be taking this company to new frontiers.”

Sasol was established in 1950 in South Africa and is now one of the country’s largest investors in capital projects, skills development and technological

62 AFRICA INDUSTRY MAGAZINE Issue 02

p62-65 AI_Mar16_Sasol.indd 62

21/03/2016 10:11

OIL & GAS

research and development.

Company founders pursued a vision to commercialise the production of oil from coal. It first started producing drums of creosote in 1955, formed a gas distribution company in 1966 and developed petrol for use in the Formula 1 sector in 1971.

Since 1950, Sasol has developed from a single petrochemical site, in Sasolburg in the Free State, to become a global integrated chemicals and energy company, with a presence in 37 countries and 30,000 employees – 85% of whom are in southern Africa.

Throughout its 65-year history, Sasol has played an important role in South Africa and the broader region’s industrialisation, growth and socioeconomic development.

To ensure communities continue to prosper, in 2012 it launched the Sasol Ikusasa public private partnership initiative, through which it is investing over R800 million in Sasolburg and Secunda, to upgrade infrastructure, education, health and security, over a four-year period.

In 1979, it listed on the Johannesburg Stock Exchange and, 13 years ago, joined the New York Stock Exchange.

Financial affairs Sasol´s headline earnings per share (HEPS) for the six months ending December 31 were down 24% as was expected.

Profitability was adversely impacted by a 47% lower-than-average crude oil price for the period. The price basket of commodity chemicals declined by 23%.

However there is some better news; highlights of operational performance

oil scenario, we have intensified and extended the scope of our response by derisking and rephasing certain projects.”

Mozambique connection strengthens Petrol for Formula 1 in 1971

were at an increase of 3% production volumes at the Secunda Synfuels operation and 4% in liquid fuels production. The Business Performance Enhancement Programme aimed at sustainable cost savings of R4.3bn is also currently on track.

The response to global pricing has positioned the company to cope with a $40 per barrel environment.

Assessments are being made on the implications of recent developments.

Outgoing President and Chief Executive David Constable said: “The decisive action to reposition Sasol through our Business Performance Enhancement Programme and our low oil price reponse plan places the organisation in a good position to maintain strong operational performances, despite the challenges.

“Given a lower for much longer

Sasol is to further help Mozambique realise its huge reserves of oil and gas. A new project, 372 miles north of the capital, Maputo, will be carried out in stages.

The first phase will include an oil, liquefied petroleum gas and gas project, adjacent to its Pande and Temane fields. Natural gas from the fields, in which Sasol holds a majority stake, is currently produced and processed at a central facility, before being transported via an 865km pipeline to gas markets in Mozambique and South Africa.

David Constable said the project was a “major milestone in further developing natural resources, which will significantly benefit southern Africa.”

Innovation Sasol has been a front runner in technological innovation ever since it was established.

AFRICA INDUSTRY MAGAZINE Issue 02 63

p62-65 AI_Mar16_Sasol.indd 63

21/03/2016 10:11

SASOL

Sasol Technology has a dedicated research and development team of more than 600 people, with over a third of them holding doctorates, or masters in engineering and science. Over the past 10 years, this team has been granted 210 patent families.

Most researchers are based at Sasolburg, where a state-of-the-art facility includes laboratories and analytical equipment, pilot plants, maintenance workshops and a library.

There is also an R&D centre at Secunda, with both hubs complemented by teams located in Enschede, The Netherlands, and at the University of St Andrews in Scotland.

Sasol voluntarily committed to reducing the GHG emissions intensity of all existing operations by 15% by 2020

■ Researching the potential for offsetting GHG emissions in southern Africa, including potential renewable energy projects.

■ Monitoring and influencing the development of carbon capture and storage (CCS) as a long-term solution.

Sasol voluntarily committed to reducing the GHG emissions intensity of all existing operations by 15% by 2020, from a 2005 baseline. Last year, it undertook a review of GHG intensity targets. This was in response to recent government policy developments.

Climate change Climate change and associated government policies represent a significant potential risk to the business, much of which is reliant on coal extraction. Its response must take into account the need for economic development, job creation, energy security and greenhouse gas (GHG) emission reductions. It is an important challenge.

A spokesman said: “As a carbonintensive company we recognise that we have a particular responsibility and opportunity to contribute to finding solutions to this challenge.

“We have had a comprehensive climate change programme in place since 2008. During 2014, we revised our GHG mitigation approach, which now rests on four main pillars: ■ Improving the carbon and energy efficiency of our processes.

■ Increasing the use of natural gas (instead of coal) for energy generation.

David Constable

Bongani Nqwababa

New company Chiefs Current President and Chief Executive David Constable is to make way for a new partnership at the head of the company in July. Bongani Nqwababa and Stephen Cornell have recently been named joint-Presidents and Chief Executive Officers.

Mr Nqwababa is currently Chief Financial Officer of Sasol, and a member of The Board while Mr Cornell is currently Executive Vice President of International Operations.

Dr Mandla Gantsho, Chairman of The Board, said, “Sasol´s succession

Stephen Cornell

plan for the President and CEO, which enabled the consideration of internal and external candidates in South Africa and globally, has informed the Board´s well-considered decision to appoint Steve and Bongani as JointCEOs. They have complementary skills, experience, qualifications and backgrounds and, together, they will form a formidable team.” ■

64 AFRICA INDUSTRY MAGAZINE Issue 02

p62-65 AI_Mar16_Sasol.indd 64

21/03/2016 10:11

» » » » » » »

AFRICA INDUSTRY MAGAZINE Issue 02 65

p62-65 AI_Mar16_Sasol.indd 65

21/03/2016 10:11

p62-65 AI_Mar16_Sasol.indd 66

21/03/2016 10:11