AFRICAN CLEAN ENERGY DEVELOPMENTS
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KOMATSU
A future where people, business, and planet thrive together
IXAFRICA
Facilitating the rapid expansion of digital infrastructure in East Africa
RAUBEX ROADS AND EARTHWORKS Driving the acceleration of the South African construction industry, we speak to the Managing Directors of the four pillars that have cemented the division as the frontrunner in road construction for nearly 50 years
Adama Soro, President of the Burkina Faso Chamber of Mines, unpacks the challenges facing the Burkinabe mining industry as a key driver of the country’s socioeconomic development
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Smooth cruising for European manufacturing
Behind the global tech powerhouse of the world’s Smartest City
The suite life of the hotel industry
World-class medical diagnostics for Africa
T R AV E L GUIDE
COCA-COLA SABCO MOZAMBIQUE Iconic and impactful brands and beverages
SYRAH RESOURCES LTD
Putting Mozambique on the map for global EV development
CYPRUS
GENIE ENERGY LTD
BATCHFIRE RESOURCES
Mediterranean escapism in the Land of Aphrodite
Advancing the solar generation
F E AT U R E
MOELLER AEROSPACE
PACTIV EVERGREEN
VAN MOER LOGISTICS
On a trajectory of expansion, Batchfire Resources is the low-fugitive emission energy coal producer pursuing plans for Net Zero
Sustainability and innovation in food and beverage packaging
Gideon Burger, CEO of Axiology Labs discusses providing top quality laboratory products for life science solutions across Africa
quality laboratory products for life science solutions across Africa Gideon Burger, CEO of Axiology Labs discusses providing top
Innoquest Diagnostics is moving forward as one in pursuit of transformative healthcare. Ginny Foo, CEO, gives us the details
Donavan Hutchinson, MD of SHI UK, tells us how how organisations are being empowered to adapt to changing business models and workplace strategies
LTD RESOURCES SYRAH
transformative healthcare. Ginny Foo, CEO, gives us the details Innoquest Diagnostics is moving forward as one in pursuit of
empowered to adapt to changing business models and workplace strategies Donavan Hutchinson, MD of SHI UK, tells us how how organisations are being
brands and beverages Iconic and impactful
MOZAMBIQUE SABCO COCA-COLA
RESOURCES BATCHFIRE
From quaint fishing village to bustling resort getaway
EVERGREEN PACTIV
AEROSPACE MOELLER
RE S US
We go Behind the Lens with culinary storyteller, Karolina Wiercigroch
VALLARTA PUERTO From quaint fishing village to bustling resort getaway
gas turbine technology discovery in air travel and industrial Ascending to new heights of
beverage packaging innovation in food and Sustainability and
TRAVEL GUIDE
PUERTO VALLARTA
We go Behind the Lens with culinary storyteller, Karolina Wiercigroch
of modern infrastructure investment Expert Eye, Amanda Li, discusses the unsustainable nature
LOGISTICS MOER VAN
pursuing plans for Net Zero is the low-fugitive emission energy coal producer On a trajectory of expansion, Batchfire Resources
Charting cleaner waters for the Adriatic
Expert Eye, Amanda Li, discusses the unsustainable nature of modern infrastructure investment
leading sustainable logistics in Belgium Founder and CEO, Jo Van Moer, discusses
EV development on the map for global Putting Mozambique
YACHTING’S SUSTAINABLE REVOLUTION
Ascending to new heights of discovery in air travel and industrial gas turbine technology
Founder and CEO, Jo Van Moer, discusses leading sustainable logistics in Belgium
MO
waters for the Adriatic Charting cleaner
REVOLUTION SUSTAINABLE YACHTING’S
GUIDE TRAVEL
F E AT U R E
solar generation Advancing the
Land of Aphrodite escapism in the Mediterranean
ENERGY LTD GENIE
CYPRUS GUIDE T R AV E L
diagnostics for Africa World-class medical
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ZERELLA FRESH
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WELCOME FROM THE EDITOR
EDITORIAL Head of Editorial: Jack Salter jack.salter@outlookpublishing.com Editor: Lucy Pilgrim lucy.pilgrim@outlookpublishing.com Editor: Ed Budds ed.budds@outlookpublishing.com
Editor: Lily Sawyer lily.sawyer@outlookpublishing.com Junior Editor: Rachel Carr rachel.carr@outlookpublishing.com Junior Editor: Lauren Kania lauren.kania@outlookpublishing.com
PRODUCTION Production Director: Stephen Giles steve.giles@outlookpublishing.com Senior Designer: Devon Collins devon.collins@outlookpublishing.com
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BUSINESS
CEO: Ben Weaver ben.weaver@outlookpublishing.com Managing Director: James Mitchell james.mitchell@outlookpublishing.com Chief Commercial Officer: Nick Norris nick.norris@outlookpublishing.com Regional Director: Joshua Mann joshua.mann@outlookpublishing.com TRAINING & DEVELOPMENT MANAGER Marvin Iseghehi marvin.Iseghehi@outlookpublishing.com
BUSINESS DEVELOPMENT DIRECTOR Thomas Arnold thomas.arnold@outlookpublishing.com
HEADS OF PROJECTS Callam Waller callam.waller@outlookpublishing.com Eddie Clinton eddie.clinton@outlookpublishing.com Deane Anderton deane.anderton@outlookpublishing.com Ryan Gray ryan.gray@outlookpublishing.com
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ADMINISTRATION
Finance Director: Suzanne Welsh suzanne.welsh@outlookpublishing.com Finance Assistant: Suzie Kittle suzie.kittle@outlookpublishing.com Finance Assistant: Victoria McAllister victoria.mcallister@outlookpublishing.com CONTACT Africa Outlook First Floor, Norvic House, 29-33 Chapelfield Road Norwich, NR2 1RP, United Kingdom. Sales: +44 (0) 1603 363 631 Editorial: +44 (0) 1603 363 655 SUBSCRIPTIONS Tel: +44 (0) 1603 363 655 jack.salter@outlookpublishing.com www.africaoutlookmag.com Like us on Facebook: facebook.com/africaoutlook Follow us on Twitter: @africa_outlook
ON THE ROAD TO GREATNESS Welcome to our 105th edition of Africa Outlook magazine. Roads are a vitally important public asset and the arteries through which economies pulse, enabling the crucial movement and flow of people, goods, and services. As well as enabling economic growth and development, roads also facilitate social mobility as improved connectivity makes it easier for people to access essential services such as healthcare and education, particularly in rural areas. The construction and maintenance of roads, an ongoing process that continues to evolve to meet growing demands, has therefore been one of the most significant factors in shaping a more prosperous, accessible, and connected modern society, impacting multiple facets of human life. Taking the high road as the cover star of our latest issue is Raubex Roads and Earthworks, part of the wider Raubex Group, who has been a frontrunner in road construction for almost half a century. We speak to the management team at Raubex Roads and Earthworks, who provide an in-depth insight into the four companies that comprise the division. “Due to our considerable size and abundance of highly skilled and experienced professionals, coupled with our established track record of successful execution of projects exceeding ZAR1.5 billion in value, we possess a substantial capacity and fulfil the criteria necessary to competitively bid as the principal contractor for megaprojects,” says Wouter van der Merwe, Managing Director of Raubex Construction. Likewise paving the way for a future where people, business, and planet thrive together, is Komatsu. Just like roads, mining has a significant impact on everyday life as commodities are crucial for power generation. Understanding that the world requires equipment to meet societal and environmental needs, Komatsu makes this as sustainable as possible through its manufacturing processes and technologies. “We are a category leader in innovation and technology. Our Japanese heritage implies precision and respect towards nature,” states Hermann Hollhumer, General Manager of Mining Operations at Komatsu. Elsewhere, learn about how IXAfrica is facilitating the rapid expansion of digital infrastructure in East Africa, WBHO Construction Pty Ltd is delivering trustworthy construction solutions, African Clean Energy Developments is empowering the expansion of renewables, and more. We hope that you enjoy your read. Jack Salter Head of Editorial, Outlook Publishing Africa Outlook Issue 105 | 3
CONTENTS
REGULARS
6 NEWS Around Africa in seven stories
8 EXPERT EYE Why Africa remains a rewarding destination for investment
I N D U STRY S P OTL I G H TS
20 Burkina Faso Chamber of Mines Addressing logistical and security issues amidst a mining boom
BU SI N ESS I N SI G H TS
10
10 Food & Beverage Sustainably Crafted The socially conscious South African wine start-up
14 Sustainability Optimising Kenya’s Reforestation Ensuring human and planetary health
TOP I C A L F OC U S
18 Sustainability 14
4 | Africa Outlook Issue 105
Green Growth in Africa Scaling up financing for climate action
166 THE FINAL WORD What advice would you give to someone considering entering your industry?
AFRICA OUTLOOK CONTENTS
F E AT U R E S
28 SHOWCASING LEADING COMPANIES
Tell us your story and we’ll tell the world
CO NST RUCTION
30 Raubex Roads and Earthworks Cementing Road and Construction Excellence A vital pillar of South African construction
56 WBHO Construction Pty Ltd Firm Foundations Delivering trustworthy construction solutions
64
64 RSC Group Integral Industrial Services Supporting multinationals across Africa
S UPPLY CHAIN
72 Digistics Delivering Supply Chain Success Resilient logistics and distribution operations
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90
142
M A N U FAC T U R I N G
TE C H N O LO GY
90 Sulzer South Africa
142 IXAfrica
Celebrating a Century of Heritage
A Digital Revolution
Solutions for sustainable flow management
Facilitating the rapid expansion of digital infrastructure in East Africa
104 UNICA Iron and Steel Setting a Solid Standard Growth and production in South Africa
114 Alu-Cab An Adventurous Pursuit A passion for overlanding and exploring the great outdoors
R ETA I L
124 Action Auto Zambia Ltd
E N E R GY & U TI L I TI E S
148 African Clean Energy Developments Empowering Expansion South African renewable energy continues to expand
158 Serengeti Energy Stewards of the Serengeti Empowering sub-Saharan sustainability
With You for the Long Run On a mission to create customers for life
MINING
132 Komatsu 72
Sustainable Solutions Informed by Innovation A future where people, business, and planet thrive together
158
Africa Outlook Issue 105 | 5
NEWS
Around Africa in seven stories… H E A LT H C A R E
GAVI’S COMMITMENT TO PANDEMIC PREPAREDNESS
TECHNOLOGY
AFRICA’S FIRST ALL-ELECTRIC BUS NETWORK XOF€135 MILLION HAS been secured to fund an electric Bus Rapid Transit (BRT) system in Dakar, Senegal’s capital city. The cash injection follows an ambitious urban transportation drive in the city, headed by Dakar Mobility, a pioneering Senegalese firm co-owned by Meridiam and the Sovereign Strategic Investment Fund
of Senegal (FONSIS). The BRT will span a total of 18.3 kilometres, feature 23 stops, a 121-strong fleet, and link the Petersen and Guédiawaye stations. It is hoped that the expansive electric network will combat severe traffic congestion in the city and contribute to reducing air pollution levels and greenhouse gas emissions.
TRANSPORT
RAPID RYANAIR EXPANSION IN RECENT DAYS, low-cost European airline Ryanair has announced plans to expand its operations across Morocco in early 2024. The company hopes that the move will boost its summer traffic in and out of the country by a third in 2024 alone, whilst it plans to fly over nine
6 | Africa Outlook Issue 105
million passengers over the course of the year. Eddie Wilson, head of Ryanair DAC, recognises Morocco as a site of huge potential, given the country’s growing popularity as an off-season weekend destination for European tourists, as well as the amount of the country’s diaspora that regularly fly home from Europe throughout the year. Ryanair plans to add two new aircrafts at Tangier airport, hoping to attract 17.5 million tourists by 2026.
VACCINE-PREVENTABLE DISEASES have historically troubled many localities across Africa. A recent announcement from global organisation Gavi hopes to alleviate this. Following a Gavi board meeting in Accra, Ghana, in early December, the alliance announced a USD$1.8 billion investment. Gavi’s commitment is intended to assist the continent in recovering from the aftermath of the COVID-19 pandemic, aid African vaccine manufacturing, and be better prepared to respond to future public health emergencies. The African Vaccine Manufacturing Accelerator (AVMA) will supplement Gavi’s investment with USD$1 billion, primarily to address considerable vaccine equity gaps identified during the COVID-19 pandemic.
FINANCE
ENERGY & UTILITIES
KENYA BUDGET DEFICIT CONCERNS
MOZAMBIQUE HYDROPROJECT HYPE
IN A TURBULENT economic climate, Kenya is searching for ways to bring its budget deficit under control ahead of the financial year’s close. A revised budget saw the deficit increase to 5.5 percent of GDP, compared to the initial 4.4 percent, eliciting concerns surrounding the government’s grasp on the national debt and its ability to stabilise the economy. The Central Bank of Kenya (CBK) raised benchmark lending rates by 200 basis points, its highest level
in over a decade, in an attempt to stabilise the exchange rate. Inflation rates are also in crisis, frozen at seven percent for the past three months, as officials attempt to reduce them to five percent.
A G R I C U LT U R E
3FARMATE ADVANCED AGRICULTURAL TECHNOLOGY GHANAIAN AGRITECH COMPANY, 3Farmate Robotics, has recently received a large investment from a Silicon Valley investor that will enable the company to begin revolutionising local farming. Known for its combination of robotic and artificial intelligence (AI) technologies, such as its 2021 seed-planting robot, 3Farmate aims
to increase efficiency and reduce overall costs for farmers across Africa and globally. The company’s unique AI-powered technology is driven by computer vision, deep learning, and state estimation algorithms. Its robots are able to navigate various farm terrains with precision, allowing the tech to plant seeds, spread fertiliser, and weed mechanically with remarkable precision. The recent financial injection is hoped to accelerate 3Farmate Robotics’ goal to transform African farming through technology.
FRENCH ENERGY GIANT EDF, alongside TotalEnergies and Sumitomo Corporation, have recently become involved in the USD$5billion Mphanda Nkuwa hydropower project in Mozambique. The development seeks to harness energy from the Zambezi River, which is one of the largest rivers in Africa, in the province of Tete. A dam and hydropower plant are set to be constructed, generating 1,500 megawatts of power primarily for Maputo, Mozambique’s capital, via an 800-mile transmission line. Due to be operational by 2031, the project will provide low-cost energy to Mozambique and eventually position the country as a regional exporter of renewable energy.
MINING
RAIL CRISIS CUTS COAL PRODUCTION THERMAL COAL EXPORTER Thungela Resources (TGAJJ) anticipates a decline in production due to ongoing rail freight problems in South Africa affecting the nation’s coal output. A 7.6 percent overall decline is expected to see South African coal production fall to 12.1 million tonnes in 2023, over a million tonnes lower than its 2022 output. A lack of locomotives and spares, alongside widespread cable theft and vandalism, has led to a considerable rail crisis in the country. Many bulk mineral exporters, such as Kumba Iron Ore and Transnet, have been forced to descale production due to constraints on transportation capacity. Africa Outlook Issue 105 | 7
Why Africa Remains a Rewarding Destination for Investment
Babs Ogundeyi, Group CEO and Founder of Kuda Technologies, discusses the continent’s funding potential and opportunities for a growing tech-savvy population Written by: Babs Ogundeyi, Group CEO and Founder, Kuda Technologies
I
n recent times, investor confidence in Africa has taken a significant hit, mirroring the broader global economic slowdown. Once an attractive destination for venture capital (VC), the continent has seen a sharp decline in funding — with start-up investments falling by over 50 percent in the past three quarters compared to the previous year. The recent decline in funding, coupled with the setbacks faced by some high-profile start-ups, has fuelled apprehension among investors and raised concerns about the future of African innovation and entrepreneurship. 8 | Africa Outlook Issue 105
Just three years ago, Africa was at the forefront of the global VC landscape. Investors from all corners of the world were pouring money into promising start-ups across the continent, recognising the untapped potential of its young, tech-savvy population and rapidly growing digital economy. However, as the global economy has shifted gears, becoming more cautious and uncertain, so too has investor sentiment towards emerging markets. Africa, with its inherent risks and challenges, has inevitably been affected by this shift — and recent shutdowns of well-funded start-ups have further heightened concerns.
Despite these setbacks, Africa remains a compelling investment destination, with a wealth of opportunities that far outweigh the perceived risks. The continent’s young and rapidly growing tech-savvy population presents an unparalleled prospect for businesses that cater to this underserved market. Additionally, Africa is a hotbed of entrepreneurial activity, with a growing number of individuals and organisations driving innovation and addressing the continent’s unique challenges and needs. This entrepreneurial spirit is fuelling the development of innovative solutions that can potentially transform various sectors across the continent.
ADAPTING TO A CHANGING INVESTMENT LANDSCAPE While the recent decline in VC funding is concerning, it is also a natural
EXPERT EYE FINANCE
decline, but simply as a reminder that the entrepreneurial landscape is competitive and not all businesses will succeed. However, the fact that these failures were met with relative calm and no widespread panic reflects the increasing maturity of Africa’s start-up ecosystem.
AFRICA’S SUSTAINABLE GROWTH POTENTIAL
consequence of a more cautious global investment landscape. Investors exercise prudence, evaluate their risk appetites, and focus on companies with solid fundamentals and viable business models. This shift in focus is not unique to Africa – it is a global trend. Start-ups in Africa, like their counterparts in other regions, need to adapt to this changing investment landscape. While funding is still available, it is becoming more selective, demanding a higher proof of concept and a clear path to profitability. Start-ups must focus on building a strong product that addresses real customer needs and demonstrating a sustainable business model that can withstand economic downturns. The recent shutdowns of wellfunded start-ups should not be seen as a sign of the continent’s overall
In uncertain times, it’s natural for investors to exercise caution. However, this should not translate into a complete withdrawal from Africa. Investors should look past the shortterm headwinds and focus on the continent’s long-term opportunities. Africa’s rapid adoption of mobile technology and internet connectivity has paved the way for a thriving digital economy. This digital transformation enables innovative start-ups to emerge and disrupt traditional industries, creating new business models and market opportunities. It is also essential to recognise that the continent’s challenges are not insurmountable. The infrastructure gap, for example, while a significant hurdle, also presents an opportunity for innovative solutions. Governments across the continent are also playing an increasingly important role in supporting entrepreneurship and fostering a conducive environment for start-ups to thrive. Initiatives such as regulatory reforms, investment promotion programmes, and access to financing are helping to create a more supportive ecosystem for entrepreneurs. While investors adopt a more selective approach, they should not abandon Africa altogether. Instead, they should focus on identifying and supporting start-ups that demonstrate strong fundamentals, a clear roadmap for success, and the ability to address the continent’s unique challenges and needs. On the other hand, startups should not be discouraged by the recent funding slowdown, but
focus on building solid foundations, developing viable business models, and demonstrating their ability to deliver value to customers.
LOOKING AHEAD Despite recent global economic fluctuations and start-up challenges, Africa’s long-term investment potential remains undiminished. The continent’s underlying strengths, coupled with the resilience of its people and the increasing maturity of its start-up ecosystem, provide a solid foundation for sustainable growth and investment opportunities. As Africa continues to navigate the current economic uncertainty, it is well-positioned to emerge as a key driver of global growth, creating immense opportunities for investors with a long-term perspective. The continent’s promise and prosperity are brighter than ever – and its future remains full of exciting possibilities.
ABOUT THE EXPERT Babs Ogundeyi is the Group CEO and Founder of Kuda Technologies, a FinTech company on a mission to make financial services more affordable, accessible, and rewarding for every African. Kuda Technologies’ money app for Africans is giving over 6.5 million people access to personal and business banking, free money transfers, investments, remittances, and instant credit. Before starting Kuda Technologies, Ogundeyi advised some of Africa’s biggest banks at PricewaterhouseCoopers and was a Special Adviser on Finance in the Nigerian government. He is also a founder of two other companies.
Africa Outlook Issue 105 | 9
S U S TA I N A B LY CRAFTED Africa Outlook (AO): Firstly, please introduce us to Lubanzi Wines as a socially conscious, sustainable wine producer?
Hailing from South Africa’s rugged Swartland, Lubanzi Wines is a socially conscious producer that endeavours to serve as a powerful force for good. We find out more with co-Founder, Charlie Brain Writer: Jack Salter 10 | Africa Outlook Issue 105
Charlie Brain, co-Founder (CB): Lubanzi Wines (Lubanzi) was founded in 2016 by myself, my good friend Walker Brown, and a community of winemakers, farm labourers, and humanitarians. Our focus is pretty simple – to produce well-made wines that punch above their weight, and in the process, are a real force for good in the world. AO: Can you elaborate upon how Lubanzi is built on the notion of not only making great wine, but also pioneering a more equitable and sustainable supply chain? CB: We believe in a better way of doing business. For us, that means taking people and planet as central and critical stakeholders in everything we do, and paying homage to the importance
of their place in the supply chain. Mostly, it just comes from a place of love for South Africa and wanting – and feeling a duty – to have Lubanzi be a force for real and meaningful social good in a place that we love and feel an obligation to personally. Everything we do to pioneer a more sustainable and equitable supply chain flows from that – whether it’s our commitment to fair trade farming, offsetting our carbon footprint, giving away one percent of sales to support environmental non-profits, eliminating single use plastics from our supply chain, or returning half of our profits to fund healthcare and education programmes for those working on wine farms and their families. Our focus isn’t just on making great wine, but also on building what we consider a more equitable and sustainable supply chain than is the norm in our industry. AO: Can you tell us more about Lubanzi’s belief that people should
LUBANZI WINES FOOD & BEVERAGE
magnetism of South Africa and make a difference in the lives of those who live and work on the country’s wine farms?
be in touch with what they consume, to understand how a product impacts the world from farm to table? CB: We feel, as consumers and business owners, that we all have a responsibility and a right to understand not only what we’re buying, but who we’re buying from and how what we’re purchasing affects the world around us. For us, it’s about seeing products as more than just a means to an end. It means not only understanding whether the wine you’re buying is
sustainably farmed or not, but also understanding whether it’s from an independent supplier or a large corporate. It’s about not only asking whether a wine has added sugar or not, but also asking if the company is employee-owned or not. It’s about asking deeper questions as consumers and communicating more wholistically as businesses when it comes to who we are, what we do, and how we do it. AO: As per your mission statement, how was Lubanzi built to share the
CB: The story of Lubanzi – two friends on a far-flung adventure backpacking along South Africa’s coast with a stray dog in tow – starts with a love and a passion for South Africa itself, the people, the culture, and the tapestry of the place. It just turns out that wine is such an incredible proxy for that in some ways. A tactile concoction of the combination of people and place, it became this incredible avenue to share a slice of the magnetism of South Africa as a country. You really do become fanatical about the winemaking over time, and that certainly happened to us, but we came here first and foremost because we love this place and wanted to share it. I’m not sure I necessarily ever expected to work in wine, but all the best things to do seem to happen by surprise. That same story – through our commitment to donate 50 percent of
THE STORY BEHIND THE LUBANZI NAME Lubanzi was named after a wandering dog that followed Brain and his friend on a six-day, 100-mile hiking trip across a beautiful stretch of South Africa’s eastern coast. They chose the name because of a belief in the power of adventure and its ability to bring meaning and joy to life. Whether that adventure is as grand as a 100-mile backpacking expedition, or as simple as trying a new restaurant – what’s important is to continue searching and being open to what the world has to offer. “We hope that belief and those ideas are what people take away from Lubanzi, as much as the quality of our wine, or our commitment to sustainability,” says Brain.
our profits – ends with the money we make not just being for ourselves, but for those who live and work on the country’s wine farms. One day in the distant future, when we’re long gone, that’ll hopefully be the story that lingers on. AO: Can you tell us more about your 12 | Africa Outlook Issue 105
Fair for Life, B Corp, and Climate Neutral certifications, as well as your commitment to giving 50 percent of net profits to the Pebbles Project? CB: We’ve embraced a real multitude of commitments over the years that demonstrate our commitment to living the values we speak about.
Through Fair for Life, we’re not just making sure that working conditions on these farms are up to par, but we’re committing to paying a premium on all the grapes that go into our wines. This premium is paid directly into cooperative funds owned by the workers on each respective farm. These premiums are meaningful in their size, and just last year, generated a 15 percent increase alone in compensation to workers on average. That’s almost two months of additional wages, which is a real difference maker. Additionally, we have a commitment to donate 50 percent of net profits back to the Pebbles Project. They are a non-profit organisation that focuses on healthcare and education programmes for those living and working on South Africa’s wine farms. As our business has grown over the last seven years, so has our commitment to the Pebbles Project. We’re
LUBANZI WINES FOOD & BEVERAGE
“ T H E S T O R Y O F L U B A N Z I S TA R T S W I T H A LOV E A N D A PA S S I O N F O R S O U T H A F R I C A I T S E L F, T H E P E O P L E , T H E C U LT U R E , A N D T H E TA P E S T R Y O F T H E P L A C E ” – CHARLIE BRAIN, CO-FOUNDER, LUBANZI WINES
now proud to sponsor 12 early childhood education centres throughout the winelands, a mobile learning centre that works with special needs kids in these 12 centres on additional learning objectives, year-round private medical and dental care for over 100 adults and 40 children, and a skills training programme for nearly 40 young adults. We also work with Climate Neutral on an annual deep assessment of our carbon emissions from grape to glass, and then offset all those emissions by supporting carbon removal projects. At the same time, we’re working
to find ways to reduce our carbon footprint, like removing all single use plastics from our supply chain moving forward. AO: Finally, what about your proud membership of 1% for the Planet, in which you contribute at least one percent of annual sales to environmental causes? CB: 1% for the Planet was an initiative founded in 2002 by the founders of Patagonia and Blue Line Co. The idea is simple – companies should pay a tax to compensate for the effect they
have on the natural world. In the same way that we all pay taxes to our government for our streets, sewer, electricity, safety, and so much more, we ought to be paying a tax to non-profit organisations who are working to repair and mitigate the effect business has on our planet. We were proud to join 1% for the Planet in 2020, and since joining have focused our energy on supporting two causes we believe in – urban greening and native reforestation in the Western Cape in order to revitalise our own surrounding area, and renewable energy infrastructure projects.
www.lubanziwines.com
Africa Outlook Issue 105 | 13
ASTRAZENECA SUSTAINABILITY
O PTIMI SING KEN YA’S R E FORESTATION With a commitment to planting and maintaining up to six million trees in Kenya, AstraZeneca is harnessing the deep learning capabilities of artificial intelligence to ensure the trees’ long-term growth and facilitate far-reaching health benefits for local communities. Deepak Arora, African Cluster President, tells us more Writer: Lucy Pilgrim
A
s part of its flagship AZ Forest programme, AstraZeneca has made a pledge to plant up to six million trees in Kenya. The new project, announced at COP28, builds on the company’s recently expanded African reforestation initiatives in Ghana and Rwanda. AZ Forest Africa, a geographical subdivision, is part of AstraZeneca’s broader commitment to plant and maintain more than 200 million trees across six continents by 2030 in recognition of the strong connection between human and planetary health. Launched in 2020, AZ Forest is a global reforestation and biodiversity initiative aimed at reducing the negative impacts of climate change and making a positive contribution to communities, local economies, nature, and the planet. “In partnership with non-profit organisations and expert delivery partners focused on global forest restoration, by the end of 2022, the company had planted over 10.5 million trees in Australia, Indonesia, Ghana, the US, and the UK,” opens Deepak Arora, African Cluster President for AstraZeneca. The company is working with world-leading experts to design and deliver its AZ Forest programme for its Kenya project, including Earthbanc and the Green Planet Initiative 2050 14 | Africa Outlook Issue 105
AZ FOREST GUIDING PRINCIPLES 1. Driving local communities and landholders, governments, and planting experts to embed social, ecological, and economic considerations into tree planting programmes from the outset. 2. Supporting the local needs and traditions of operational spaces. 3. Taking a science-driven approach, adhering to the highest standards and independent accreditation, to ensure transparency and demonstrate a long-term positive impact.
Foundation (GPI2050). The reforestation in Kenya will span six counties in the west of the country, adjacent to the Rift Valley, covering more than 3,500 hectares (ha) of land. The project will be amongst the first to use an advanced artificial intelligence (AI) deep learning model to analyse drone footage and satellite imagery to monitor tree growth and health, while also quantifying levels of carbon sequestration. “We use a rigorous and sciencebased framework with expert input to decide where we make investments and have confidence in the projects we have selected,” affirms Arora. Designed using a sciencebased approach and harnessing new technological innovations, the programme aims to promote long-term tree health, increase the biodiversity of flora and fauna, generate an economic boost, and improve overall health for local communities.
GREENER AND HEALTHIER LIVING AstraZeneca recognises the clear link between planetary and human health. As such, the company holds a firm belief that investing in the natural world through tree planting and conservation, as well as suppressing deforestation, are some of the most
Ghana
ASTRAZENECA SUSTAINABILITY
effective preventative health steps that can be taken. “We are investing in both drug R&D and environmental protection because it is the right thing to do. We recognise the strong connection between healthy people, a healthy society, and a healthy planet, and work hard to foster environments in which all life can thrive,” he explains. Indeed, a growing body of evidence highlights the co-benefits of reforestation beyond sequestering carbon and points towards an abundance of health advantages, including lower air and surface temperatures, reduced air pollution, lower risk of natural disasters, better biodiversity, and improved mental health and well-being. “At AstraZeneca, we understand
that a healthy environment is inextricably linked to the health of people, society, and the planet. There is an urgent need to halt and reverse biodiversity loss,” he adds. Indigenous and productive tree species planted as part of the AZ Forest programme will improve soil health and local crop yields, while produce, including leaves and honey, will benefit the local agro-economy. Meanwhile, more than 5,000 local farmers and community members will be engaged in the project, which also aims to support a groundbreaking reforestation ambition from the government as it aims to plant 15 billion trees by 2033. The role nature-based solutions can play in addressing the climate crisis was a top agenda item at
COP28, with the summit placing a focus on the progress made since the COP26 declaration in Glasgow to end deforestation. New research has underlined the impact that reforestation and the protection of existing trees can have in tackling climate change, potentially sequestering up to 226 gigatonnes of carbon, making it a key priority for the conference.
EXPANDING REFORESTATION BENEFITS Aside from Kenya, AZ Forest’s global programme aims to span 100,000 ha worldwide. For example, in Ghana, almost three million trees have been planted this year through a community-led project, known as Living Lab, supporting
ASTRAZENECA SUSTAINABILITY
Rift Valley, Kenya
ecological and community resilience. AstraZeneca partnered with the Circular Bioeconomy Alliance (CBA) on the first-of-its-kind programme, focusing on natural forest restoration, sustainable woodlots, and agroforestry. As a result, the project has engaged with 1,200 farmers across 23 communities. Elsewhere, in Rwanda, 6,000 farming households have signed up to the Living Lab project, with 16 community nurseries established to grow a range of indigenous and fruit tree species. Planting is set to start in the coming months, with a target to plant around 5.8 million trees across 21,000 ha, in what is one of the largest forest restoration initiatives in Rwanda. As a highly powerful pharmaceutical giant, AstraZeneca is transforming the future blueprint for reforestation, whilst ensuring the future integrity of Kenya’s reforestation. In the context of COP28, the company’s AZ Forest programme is an exemplar for surrounding global corporations. 16 | Africa Outlook Issue 105
Rwanda
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TOPICAL FOCUS SUSTAINABILITY
G R E E N G R OW T H IN AFRICA A
frica Day at COP28, held on 2nd December, 2023 at the Africa Pavilion in host city Dubai, plays a key part in representing the continent at the annual historical climate change conference. This year, the event fostered the theme ‘Scaling up Financing for Climate Action and Green Growth in Africa’, aimed at bolstering Africa’s overall voice in the global discussion on sustainability and providing a platform upon which to explore the continent’s recent response to climate change. The theme builds on outcomes from the recent Africa Climate Summit (ACS), hosted in Nairobi, Kenya, in September 2023. Its theme revolved around ‘Driving Green Growth and Climate Finance Solutions for Africa and the World’. Proceedings at Africa Day intended to examine ways to fund the USD$3 trillion required to implement Africa’s Nationally Determined Contributions (NDCs) by 2030. President William Ruto of Kenya, Coordinator of the Committee of African Heads of State and Government on Climate Change (CAHOSCC), who also headed up the ACS, gave this year’s keynote address. Discussions principally focused on leveraging domestic resource mobilisation and boosting foreign direct investment (FDI) in support of the energy transition, whilst the deployment of Africa’s plentiful renewable energy resources, resilient agriculture, and food systems were evaluated. Greening the African Continental
18 | Africa Outlook Issue 105
The annual COP summit has become a symbolic gathering of heads of state from across the globe. Coinciding with Africa Day, the continent’s leadership seeks to award Africa a voice at one of the world’s largest sustainability conferences Writer: Lily Sawyer
Free Trade Area (AfCFTA) was also an area of focus, alongside the transformation of critical minerals to power batteries and electric vehicles (EVs) in Africa, and climate change adaptation and resilience projects such as the Great Green Wall Initiative – a comprehensive rural development project. Thus, Africa Day is intended to amplify the voice of African countries within the global climate discussion, and provide a space in which the continent’s challenges, opportunities, and responses can be highlighted.
AREAS FOR DEVELOPMENT Africa’s framework for financing climate action and green growth currently includes the deployment of the continent’s abundant renewable resources and the processing of its essential minerals. However, significant funding is required to achieve this. Claver Gatete, Executive Secretary
of the United Nations Economic Commission for Africa (UNECA), wishes to focus on developing innovative financing mechanisms to bolster green growth. He referred to UNECA’s funding for South Africa, which recently awarded ZAR3 billion to fund renewable energy investments in the country. Gatete also called for the development of African carbon credit markets to provide significant opportunities for opening up green finance. At present, Africa is home to 65 percent of the world’s uncultivated arable land. Due to funding discrepancies, the continent is yet to monopolise its rich resources. The African Development Bank (AFDB) launched a Climate Action Window earlier this year, including up to USD$14 billion to supplement sustainable development across 37 low-income countries. However, in the context of Africa Day at COP28, the African Group of Negotiators (AGN) indicated its disappointment in Africa’s overall progress towards the Global Goal on Adaptation (GGA), which includes enhancing the world’s resilience towards climate change. The AGN’s position elaborates that USD$100 billion per year must be delivered, sourced potentially from reforming multilateral development banks (MDBs), for Africa to have any chance of meeting suggested GGA targets.
CELEBRATING SUCCESS Despite varying degrees of success
in achieving agreed climate targets, AFDB President Akinwhmi Adesina evoked national pride amongst African countries later in the day’s proceedings. He argued that Africa should always be celebrated, particularly in the context of younger generations and the future of the continent. The President of Senegal, Macky Sall, also highlighted that Africa has a legitimate need for development and industrialisation in order to become part of a valuable global supply chain. The President called for the recognition of Africa as a site of potential trade, commerce, and development, rather than merely being observed as a farm for raw materials. Additionally, the country must invest in its society to create added value, providing jobs to future generations within a stable and sustainable national economy. The ultimate challenge for Africa, therefore, is obtaining the ability to finance cheap energy, through green industry in particular. The continent must benefit from a fair energy transition, and global partners must support this for Africa’s potential to be realised.
investment for Africa to be able to engage in serious negotiations with its partners. The negotiation Mr Mahamat refers to is the Nairobi Declaration, adopted at the September 2023 ACS, which is recognised as a call to action for the world to speak as one. The declaration acknowledges that climate change is the single greatest challenge facing humanity, demanding urgent action from all nations. Azali Assoumani, Chairperson of the African Union (AU), officially inaugurated Africa Day at COP28 and praised Kenyan President William Ruto’s leadership. Assoumani recognised the importance of green and sustainable growth expanding in the country, and the development of innovative partnerships that point to positive change. Later in discussions, coastal and island states, such as Comoros, Seychelles, Mauritius, and Madagascar, were brought to the table.
Leaders talked of achieving synergy between inland, coastal, and island states, so that no African country will be marginalised from inclusive green development and funding. In 2015, the AU set out an ambitious and steadfast set of national goals in the African Agenda 2063. These goals will see the continent strive for a prosperous existence based on inclusive growth and sustainable development, and an Africa that is an influential global player and partner. Assoumani, who is also the President of the island state of Comoros, recognised how Africa’s oceans and marine resources have a crucial role to play in the African Agenda 2063. “Given their potential, the blue and green economies constitute a potent catalyst for sustainable development on our continent,” he concluded at Africa Day 2023, on a note of optimism.
SPEAKING AS ONE In a similar way to the AFDB’s Climate Action Window, which supports Africa’s poorest localities in combatting climate change despite their relative lack of contribution to the problem, the African Union Commission (AUC) Chairperson, Moussa Faki Mahamat, sought global
Africa Outlook Issue 105 | 19
SPOTLIGHT ON MINING IN BURKINA FASO
Since the 2000s, Burkina Faso has been experiencing a mining boom. However, despite being in the midst of a modern gold rush, the country has undergone security challenges over the past two years with a significant impact on the mining industry Writer: Jack Salter | Project Manager: Deane Anderton
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his boom has mainly been in gold, as Burkina Faso today is Africa’s fourth-largest producer of the precious metal, which is present in every region of the country. The mining industry has grown in Burkina Faso as a result, along with the artisanal and small-scale gold mining (ASGM) sector. According to some estimates, gold production from the ASGM sector even equals that
20 | Africa Outlook Issue 105
of the industrial sector in Burkina Faso and represents a primary source of income for a large part of the population. However, as a landlocked country, Burkinabe mining operations are faced with significantly increased logistical costs, particularly for oil and gas supplies, which can make up for about 30 percent of a mine’s operating expenses.
BURKINA FASO CHAMBER OF MINES INDUSTRY SPOTLIGHT
Mining companies in Burkina Faso are therefore looking for ways to improve energy efficiency and lower fuel consumption, as well as reduce the huge amount of dust that can be generated in the dry Sahelian climate. Another major challenge in Burkina Faso is the volatile security situation in the country. Mining companies operating in the most insecure areas are increasing investments in security systems as a result, in order to
keep their operations going and ensure safe transport. In addition to routine requirements such as personal protective equipment (PPE), there is therefore also an additional need for extra security measures such as armoured vehicles, surveillance drones, and cameras. Luckily, the mining sector is showing resilience thanks to joint action from both government and mining operators. Africa Outlook Issue 105 | 21
Adama Soro, President
BURKINA FASO CHAMBER OF MINES INDUSTRY SPOTLIGHT
INTERVIEW:
B U R K I N A FA S O CHAMBER OF MINES Adama Soro, President of the Burkina Faso Chamber of Mines, unpacks the challenges facing the Burkinabe mining industry as a key driver of the country’s socioeconomic development Africa Outlook (AO): Firstly, could you talk us through the beginnings of the Burkina Faso Chamber of Mines and its original vision and mission? Adama Soro, President (AS): The organisation began in 1996 as the Professional Association of Miners and was aiming to defend the interests of members and the overall mining industry in Burkina Faso, as well as promote the development and competitiveness of the industry. At the same time, it was also aiming at developing and maintaining partnerships with the administration and promoting internationally recognised best practices within the mining industry in terms of governance, socioeconomic development, and community engagement. Elsewhere, it was also aiming at fostering cooperative relationships and exchanges among members. It then faced the need to evolve to increase its reach to a broader membership before becoming the Burkina Faso Chamber of Mines in 2011. The original vision and mission hasn’t changed since 1996, promoting and engaging all stakeholders towards the broader mining industry. The core vision of the chamber is to position itself as an organisation of partners, key stakeholders, and facilitators of the mining industry in Burkina Faso. We view ourselves not only as a defender of our members but also as the promoter of the mining sector and the key driver for economic growth. Burkina Faso is among the poorest countries in the world, and as the mining sector accounts for roughly 20 percent of GDP, we need to use the industry as a key driver
for the socioeconomic development of the whole country. That is part of our DNA, pushing and establishing better relationships with all stakeholders locally. AO: What is your current take on the mining industry in Burkina Faso? Is it a particularly exciting or challenging environment to work in? AS: We started seeing a big change in Burkina Faso’s mining environment in 2008 when the mining boom began. This followed the adoption of a new mining code in 2003. Since then, we have had various companies coming from Canada, Australia, South Africa, and the UK to name a few. There are still some challenges around the mining activities in the country with relation to security. Concurrently we encountered some challenges during the COVID-19 pandemic heightened by the impacts of the crisis in Ukraine with a significant increase in the inflation rate. Africa Outlook Issue 105 | 23
BURKINA FASO CHAMBER OF MINES INDUSTRY SPOTLIGHT
AO: How does the Burkina Faso Chamber of Mines represent the private mining sector and promote the interests of its members?
Executive Director addressing LSM-ASM collaboration
“A S T H E M I N I N G S E C T O R A C C O U N T S F O R R O U G H LY 2 0 P E R C E N T O F G D P, W E N E E D TO U S E T H E I N D U ST RY AS A KEY DRIVER FOR THE SOCIOECONOMIC DEVELOPMENT OF THE WHOLE COUNTRY” – A D A M A S O R O , P R E S I D E N T, B U R K I N A FA S O C H A M B E R O F M I N E S
Burkina Faso is a landlocked country, therefore many goods and consumables used in the production process come from overseas. Subsequently, the security crisis both in the global and local realm impact inflation. Burkina Faso accounts for 22 percent of the Greenstone Belt, so the potential is there even if there are some challenges. The country started experiencing the side effects of insecurity and political instability because Burkina Faso encountered two coups in January and September 2022. As a result, gold production dropped from 68 tonnes in 2021 to 57 tonnes in 2022, which is roughly a decrease of 13 percent. This serious security situation made it difficult to operate for two reasons. The first was exploration due to some geographical restrictions (because most exploration sites are located in red/amber zones), but also difficulties in shipping goods and consumables to supply sites that are sometimes located in remote areas. However, mining production is set to increase next year, and the country is ready to accelerate the growth of the economy via the mining sector. We have gone from producing 5.9 tonnes of gold in 2010 to 57 tonnes last year, so production has basically multiplied tenfold over the last decade. At the same time, we are also seeing some challenges associated with the business environment, and we think that there is still some room for progress in the mining industry in Burkina Faso. 24 | Africa Outlook Issue 105
AS: Every six months, we share a document where we review all the challenges associated with the mining industry within the country and suggest some avenues that can be explored. Most of the time, we are able to find common ground between the private mining sector and the government. This document is the roadmap of the industry as we see it and is used to engage stakeholders including the private sector and the government. We regularly review and update these documents so that we can keep a better track of what we set as goals. At the same time, we also organise conferences, seminars, and workshops to further educate various stakeholders on key topics in the mining sector. We also promote best practices and governance in doing business to ensure international standards within all our activities. We’re also investing in socioeconomic projects and facilitating discussions to better manage expectations. We play the role of educating, advocating, and engaging people and stakeholders. AO: What other specific goals does the Burkina Faso Chamber of Mines have, and what strategy have you adopted to achieve these goals? AS: Firstly, our goal is for the Burkina Faso Chamber of Mines to be perceived by all stakeholders as a key player in the country’s socioeconomic environment. The second objective is to further engage with the administration, including the government and related bodies. The third objective is to promote best practices within the industry and further engage industry players. These are the three objectives that we pursue. AO: How do you see the mining industry in Burkina Faso developing in the next five years? AS: Despite the fact that we’re facing some challenges on security and inflation, Burkina Faso is still a good place to invest in terms of potential. For the coming years, we as a country, including the government and private mining sector, should be working to move forward with the various challenges that we are facing together. Additionally, we should work to increase investment in the mining sector. There are also some challenges on the legislative side. We’re now engaging with the government on various topics, such as dropping the expected increase in royalty rates. They were expected to double from five percent to
Coris Bank
BURKINA FASO CHAMBER OF MINES INDUSTRY SPOTLIGHT
Attending the Canadian Institute of Mining Forum 2023
roughly 10 percent, but as the umbrella organisation of all mining companies, we have engaged in discussions with the government and succeeded at bringing the royalties rate down to 6.5 percent. We should keep on discussing and promoting trustworthy dialogue with the government. A new decree on local content was also enforced in late 2021. The chamber raised some concerns to the government with regards to the competitiveness of the industry. We brought to their attention that local content is a good thing for the country’s economy. Even as mining companies, we understood the challenge of using overseas supplies during the COVID-19 pandemic. Hence, if mining
companies can be supplied with good quality and readily available products and services locally, the benefit will be of interest for everyone. Conversely, mining companies should not be compelled to buy locally when it is not competitive. However, we have a good understanding of the government’s perspectives and have been moving forward with reflecting on how to better enforce legislation without jeopardising the mining industry’s ability to contribute to the greater economy of Burkina Faso. One challenge is to sort out the security issues but also to sit down and discuss all the legislation related to the mining industry without jeopardising its ability to produce more. Burkina Faso is a good place to invest in because it has high potential; it only requires more engagement, productivity, and constructive dialogue. AO: Finally, what are your key priorities in order to continue representing Burkina Faso’s mining industry?
Vice President Soleymane Boly at Students in Mining National Forum
Chamber of Mines General Assembly
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AS: There are some positive discoveries that have been made over the years, such as copper in the southwest region of Burkina Faso. We also have an estimated 33 million tonnes of nickel in the north of the country, and there are some traces of lithium and diamonds, so there is some potential there. Some projects have been stopped because of challenges associated with insecurity, but we are hopeful that these will resume so we encourage the government to put favourable conditions in place for investors and operators. We are still optimistic. We have been impacted by challenges, but we’re not hindered and we think that we will succeed in moving fast and forward. Burkina Faso is still a good place to invest in. BURKINA FASO CHAMBER OF MINES Tel: +(226) 25 36 19 35 cmb@chambredesmines.bf chambredesmines.bf
BURKINA FASO CHAMBER OF MINES INDUSTRY SPOTLIGHT
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Issue 105
C E M E N T I N G R OA D A N D C O N S T R U C T I O N E XC E L L E N C E
RAUBEX ROADS AND EARTHWORKS CONSTRUCTION
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Raubex Roads and Earthworks is driving the acceleration of the South African construction industry. We speak to the Managing Directors of the four pillars that have cemented the subdivision as the frontrunner in road construction for nearly 50 years Writer: Lucy Pilgrim | Project Manager: Kierron Rose
RAUBEX ROADS AND EARTHWORKS Driving the acceleration of the South African construction industry, we speak to the Managing Directors of the four pillars that have cemented the division as the frontrunner in road construction for nearly 50 years
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aubex Roads and Earthworks Division is part of the wider Raubex Group, South Africa’s leading infrastructure development and construction materials supply organisation. As titans of the South African construction industry, the group operates throughout Southern Africa and Western Australia. Established in 1974, Raubex was listed on the Johannesburg stock exchange (JSE) in March 2007 and is proud to have operated with integrity, professionalism, and quality in all its work. As a specialised division, Raubex Roads and Earthworks is a global industry leader in road construction and earthworks, whilst similarly excelling in road surfacing and rehabilitation. These services comprise the laying of asphalt, chip and spray, surface dressing, enrichments, and slurry seals. Following over two decades of strategic acquisitions in the group, the division was finally consolidated in 2021, which allowed it to expertly operate in the roads and earthworks sector and general civil engineering construction space. Africa Outlook Issue 105 | 3
Adama Soro, President of the Burkina Faso Chamber of Mines, unpacks the challenges facing the Burkinabe mining industry as a key driver of the country’s socioeconomic development
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C E M E N T I N G R OA D CONSTRUCTION EX Raubex Roads and Earthworks is driving the acceleration of the South African construction industry. We speak to the Managing Directors of the four pillars that have cemented the division as the frontrunner in road construction for nearly 50 years Writer: Lucy Pilgrim | Project Manager: Kierron Rose
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D AND XC E L L E N C E
RAUBEX ROADS AND EARTHWORKS CONSTRUCTION
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aubex Roads and Earthworks is a division of the wider Raubex Group (Raubex), South Africa’s leading infrastructure development and construction materials supply organisation. As titans of the South African construction industry, the group operates throughout Southern Africa and Western Australia. Established in 1974, Raubex was listed on the Johannesburg stock exchange (JSE) in March 2007 and is proud to have operated with integrity, professionalism, and quality in all its work. As a specialised division, Raubex Roads and Earthworks is a global industry leader in road construction and earthworks, whilst similarly excelling in road surfacing and rehabilitation. These services comprise the laying of asphalt, chip and spray, surface dressing, enrichments, and slurry seals. Following over two decades of strategic acquisitions in the group, the division was finally consolidated in 2021, which allowed it to expertly operate in the roads and earthworks sector and general civil engineering construction space. Africa Outlook Issue 105 | 31
RAUBEX ROADS AND EARTHWORKS CONSTRUCTION
RAUBEX CONSTRUCTION A prominent construction company based in Bloemfontein and Pretoria, South Africa, Raubex Construction (RCON) is the oldest and largest entity in the division. Historically, it has been the core component in the group’s portfolio and was instrumental in its significant growth and success over the last five decades. “Unlike many other subsidiaries within the wider group, RCON was here from the beginning. Founded in 1974, its initial key areas of expertise focused on road construction and earthworks,” introduces Wouter van der Merwe, Managing Director of RCON.
“RAUBEX CONSTRUCTION’S FOUNDING VISION ALIGNS WITH THE DIVISION’S OV E R A R C H I N G M I SS I O N O F D E L I V E R I N G I N F R A S T R U C T U R E T H AT C O N T R I B U T E S T O S O C I E TA L D E V E L O P M E N T, E C O N O M I C G R OW T H , A N D T H E I M P R OV E M E N T O F T R A N S P O R TAT I O N N E T W O R K S ” – W O U T E R VA N D E R M E R W E , M A N A G I N G D I R E C T O R , RAUBEX CONSTRUCTION
Wouter van der Merwe, Managing Director, Raubex Construction
Subsequently, the company expanded and diversified its repertoire to become one of the cornerstones of Raubex Roads and Earthworks’ offerings. RCON’s resounding success is a reflection of the culture and the staff’s extensive experience and background in the industry. Van der Merwe grew up in a family where construction runs in their blood, as WP Construction was founded by his grandfather in 1954. For the subsequent five decades, the company operated in a similar niche market to that of RCON in the 1970s to 1990s. 32 | Africa Outlook Issue 105
“The company became part of Raubex in 2008. After graduating from university in 1999, I joined the family business which had been passed on to my father,” recalls van der Merwe. Today, under his leadership, the company has established itself as a leading player in the national and international construction industry, offering a diversified range of services across a multitude of sectors. “We are certainly the largest of the four companies in the division in terms of revenue, human resources, and equipment,” he emphasises.
“Due to our considerable size and abundance of highly skilled and experienced professionals, coupled with our established track record of successful execution of projects exceeding ZAR1.5 billion in value, we possess a substantial capacity and fulfil the criteria necessary to competitively bid as the principal contractor for megaprojects.” RCON specifically specialises in road construction, earthworks, infrastructure development, materials supply, and civil engineering works, amongst other construction-related activities.
Musina Ring Road
RAUBEX ROADS AND EARTHWORKS CONSTRUCTION
The numerous megaprojects the company has undertaken demonstrate its strategic expansion across Southern Africa. “Our footprint since inception can be found as far up as Zambia where our work often involves government contracts, private sector initiatives, and public-private partnerships,” van der Merwe highlights.
RCON’S N3 CATO RIDGE AND N3 DARDENELLES PROJECTS This project foresees the upgrading of section two of N3 between Cato Ridge and Dardenelles, and Dardenelles and Lynnfield Park.
N3 Cato Ridge. Prime Time. © Barend Summers
This will be executed via the following work: • The opening and rehabilitation of road cuttings. • Constructing two additional lanes in each direction. • Lengthening of underpass structures. • Widening of outer edges of the carriageway to provide for additional lanes. • Constructing auxiliary lanes on-ramp and off-ramp. • Strengthening of existing N3 pavements.
N3 Cato Ridge. Packing of precast bridge beams. © Barend Summers
• Interchange improvements to ramps, crossroads, and roadover-road structures. • Cross-draining pipe culverts along N3 routes. • Providing new ramps and upgrading provincial roads. • Constructing retaining walls.
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One recent project that RCON is most proud of is the Beitbridge Border Post modernisation in Zimbabwe, which was executed in a 50/50 joint venture with Raubex Building (Pty) Ltd., a company in the infrastructure division. This involved overseeing and implementing the expansion, upgrading, improvement, and overall renovation of the border post.
This project is an integral national milestone in reaching Zimbabwe’s socioeconomic development goals, with the design, finance, and construction conducted on behalf of the Zimbabwean government and was the first public-private partnership (PPP) that was delivered on time without any claims. The work included a complete re-design of the current border post,
N3 Cato Ridge. Sunset on productive day. © Pieter Neveling
RCON ANCILLARY WORKS • Fencing of road reserves. • Provision of road markings. • Installation of road studs and new road signs. • Erection of new guard rails. • Construction of gabion walls. • Top soiling, grassing, and finishing of road reserve, spoil areas, and the quarry. • Lighting of the freeway mainline on-ramp and off-ramp. N3 Cato Ridge
with three traffic streams. Each traffic stream includes a terminal building, gatehouses, search and scan facilities, and storage warehouses. The area covered totals an impressive 30,000 square metres (sqm). Furthermore, concrete hardstand areas for all parking and roads were also conducted, totalling 130,000 sqm, alongside new services addressing water, sewerage, and electricity
streams for the border post. Work outside the border included a 50,000 cubic metre (m3) oxidation dam, 220 staff houses, as well as the building of associated road and water pipeline infrastructure to and from the reservoir, amongst more. The border post will be managed and maintained by Raubex Facility Management for 17 years, after which ownership will be bestowed to
Zimbabwe. RCON is also currently working on two greatly substantial contracts on the outskirts of Durban in Kwa-Zulu Natal, along the National Route 3 (N3) that extends between Cato Ridge and Lynnfield. The combined valuation of these contracts sits at more than of ZAR2.9 billion, making it the largest operation in RCON’s portfolio. Africa Outlook Issue 105 | 35
Briefly introduce us to Umbuso Wamaqadi Contractors. Umbuso Wamaquadi Contractors (UWC) was started in 2013, so we are 10 years old now. The name itself is inspired by one of the original owners from the 1980s, so there is a legacy that comes with that. We are a road and earthworks business, but we also have experience in civil structures, and we recently completed the first phase of a bridge project. In the last 12 months, the bulk of our revenue has come from our quarry management and crushing, and the completion of our very first asphalt paving job. What are some of the ongoing or recent projects that you are most interested in showcasing? The core of our business for the last five years has been based around gravel rehabilitation jobs, such as the one we are currently busy with in Mooi River, the client being the KZN Department of Transport. These projects have been key for us, and the sustainability of the business.” We have also been involved in the Pisang Bridge Project, drilling into rocks, and the next phase of this project will be the deck and road construction. This was our first big involvement in a bridge project, so that was very exciting. We have also worked with Raubex Construction, on the Newlands’ roads. UWC assisted with the resurfacing of three main roads in the Newlands area. Again, this was our first asphalt job, and we were very busy with the ancillary works. Finally, we have been supplying aggregate and gravel materials to Raubex Construction, and we have supplied them with G7 Gabian stone, minus 120mm pioneer materials and will soon start supplying G4. What, for you, differentiates your business from the competition?
I think for us, it is the fact that we are always looking for new opportunities to gain experience and learn. A year ago, we knew nothing about crushing, and today UWC can say that that is about 50 percent of our revenue. That growth can only be done and can only be sustainable by capacitating yourself. That is to say that when an opportunity comes to you, you grab it with both hands and humble yourself in every situation so that those partners can continue to teach you and you can continue to grow. We learn from our mistakes, and we continue to build from there. So, what makes us different is the fact that we are always learning and evolving, and that is how we have kept our relevance. That is how we continue to grow and, honestly, that is how we do not feel trapped in a routine, coasting along, and so we are different in that way. Could you tell us about some of the major challenges faced within the industry and the business itself and then detail how these have been overcome? I think for a company of our size, there are two
main challenges: our access to funding and the effects of the COVID-19 pandemic. In terms of funding, there are often roadblocks along the way, whether that be due to the contracts themselves, or the commercial banks. We have had to stick it out, and now that we are a midsized company, I can comfortably say that having those conversations gets easier. But it was our willingness to stick it out that afforded us that comfort now. Banks are not easy to convince, especially within construction. The effects of the COVID-19 pandemic are not exclusive to us, of course. UWC, much like many other companies, struggled to find projects in 2020 and 2021. The main thing that helped us overcome this difficulty was having made connections before then and using that time to grow internally. In that first year of the COVID-19 pandemic we grew over 100 percent. Now, of course, we are looking at insurance options to sustain us if an event like that happens again, so we are learning to manoeuvre around these challenges. What are your major future ambitions going forward and how will these goals be achieved? Our first major ambition, which was a target when we started the year, is to move from a CIDB Grade 6 to a Grade 7 CEPE. We are already busy with that application. Long term, our five-year plan is concerned with moving from predominantly subcontractor work to becoming the main contractor on projects in which we are involved. That means we need to get our revenue to about 120 million a year for three years. We have to make sure we have the right people to fill the right positions in order to achieve this and that takes time at careful attention. Could you tell us more about your plans to address the challenges of youth unemployment and skills development? One thing that is apparent within the construction industry is the gatekeeping. People get settled and comfortable in their roles and that is fine, but we have chosen not to be that kind of contractor. So as far as offering young people employment, we can only take in as many people as we can. We have an opportunity to change the lives of people. We are helping two of our employees set up their
own business currently. These guys started as general workers in our Gabian laying team and they then became supervisors for two separate teams, so whenever we work on projects that require Gabian teams, we always turn to these guys. We wanted to open the industry up for them. We do not keep these opportunities for ourselves, instead, we value our communities. We want to help guide people on their career path, whatever that may be, and in terms of skills development, we also have a lot of inexperienced staff, new staff that have recently joined and they’re already involved in various training programmes. Shadowing is also a big part of the training process here, as we feel this gives our employees sure footing a lot sooner. What are you most proud of in relation to the company overall? We have a lot to be proud and thankful for. I am most proud of our growth in the last 12 months. We used to be a small business and I am happy to see that small business growing. A lot of people will say that too much growth in a short space of time is risky, but the people at UWC are ready to take it on and continue to evolve. We always have room for improvement, and I am proud of how we manage everything, but most importantly I am proud of the people we work with every day. What does the next 12 months look like for the business? Mostly, we are looking for stability. We are amazingly comfortable in most areas, but, of course, there are still areas where we would like to develop more. We also want to keep up the stream of work and make sure that it is sustainable for years to come. Ultimately, we want to maintain our growth, continue developing our skills, and keep our people in business, particularly our newer staff.
Unit 2c, 5 Sinembe Crescent, La Lucia Ridge, 4319 admin@umbusowamaqadi.co.za +27 31 003 6723 umbusowamaqadi.co.za Umbuso Wamaqadi Investments Umbuso Wamaqadi Investments
RAUBEX ROADS AND EARTHWORKS CONSTRUCTION
N1 Fogspray - Hexriverpass
ROADMAC SURFACING An adjacent subdivision that is also part of Raubex Roads and Earthworks is Roadmac Surfacing (RMS). Founded in 1997, it specialises in the rehabilitation and surfacing of roads, consisting of predominantly asphalt and chip and spray surfacing. “I grew up farming, so machinery and construction has always been a part of my life,” says Erik Grové, Managing Director of RMS. The company has cemented itself as the leading light road rehabilitation contractor in the region, possessing the impressive ability to surface over 10 million sqm of road per year. RMS tenders and executes work with RCON, alongside completing its own projects. “Our operational area consists of all the inland provinces as well as Namibia, where we work for South African National Roads Agency Limited (SANRAL), N3 Toll Concession (N3TC), TRAC, Bakwena, alongside 40 | Africa Outlook Issue 105
anticipates working on the R21, a significant north-south provincial route in the Gauteng region. This has become a very high-profile project due to the urgency of the repairs required and its association with the Gauteng Freeway Improvement Project (GFIP) and electronic tolls. “We are focused on broadening our client base and therefore looking forward to future projects working with toll concessionaires,” Grove tells us.
ROADMAC SURFACING CAPE Erik Grové, Managing Director, Roadmac Surfacing
other provincial departments and municipalities in the local area,” Grové states. The company currently has a staff base of 300 permanent employees, with a further 200 in reserve for larger operations. As RMS ventures into 2024, it
As another adjacent subdivision that is also part of Raubex Roads and Earthworks, Roadmac Surfacing Cape (RMSC) is a key contributor to the wider construction industry, operating in the Eastern, Western, and Northern Cape regions of South Africa. “The company is dedicated to maintaining high standards, quality work, and ethical business practices,” Grové tells us.
Pienaarsrivier: Coring at sunrise. Barnes Letanta
RMS’S RECENT PROJECTS ROADSIDE: Paved 304,000 tonnes (t) of asphalt and surfaced 60,685 sqm of 14 millimetre (mm) seals, as well as 133,200 sqm of 16mm seals. In partnership with N3TC, it was the first project that surpassed ZAR1 billion, reaching completion last year. WELKOM R730: Working with SANRAL, the company repaired the existing base of the road by 8,135 m3 by recycling pre-existing resources, and paved overlays of 35,714t of AR1 asphalt surfacing. US3: In partnership with Bakwena, RMS milled out and paved back 18,604t continuously, followed by an asphalt overlay of 71,510t medium, with an achieved internalised-resource identifier (IRI) average of 0.75 over the whole project.
N7 Northern Cape Fogspray 1
Africa Outlook Issue 105 | 41
RAUBEX ROADS AND EARTHWORKS CONSTRUCTION
RMSC’S NATIONAL ROUTE R336 UPGRADES The project entails the following components: • Relocation of services in urban and peri-urban areas. • Accommodation of traffic including pedestrian, nonmotorised, and vehicular traffic. • Rehabilitation of the existing road through Kirkwood and on the R336, including the construction of a new sub-base and crushed stone base. • Addition of climbing lanes and left and right turn lanes. • Construction of a roundabout. • Building of a lightweight structure to the side of the deck, located on the inside curve of the bridge to carry nonmotorised traffic. • Construction of non-motorised facilities to accommodate pedestrian movement. • Stormwater improvements along the R336 and in town, including culvert crossings, subsurface drainage systems, earth and concrete side chains, and cut-off drains at cuttings. • Base patching, crack sealing, edge break repairs, as well as texture slurry and construction of a double seal using 14mm and 7mm aggregate. • Other ancillary road improvement elements include the installation of service ducts, kerbs, guardrails, road markings, road signs, and road studs.
42 | Africa Outlook Issue 105
With approximately 500 employees and a substantial construction plant base, RMSC offers a plethora of services including asphalt overlays, major road rehabilitation with in-situ stabilisation, minor road rehabilitation including asphalt patching, road rejuvenation, road reseals, earthworks, and greenfield road construction.
“Our clientele has grown over the years and now includes SANRAL, provincial governments, municipalities, and various private clients,” he adds. The company covers a wide geographical range, operating across the bulk of the Northern and Eastern Cape provinces, alongside the entire Western Cape province. This ensures
that RMSC is well represented in these areas. RMSC’s major projects include the upgrade of the national route R336 between Kirkwood and Addo. Phase one of this operation takes place in the southern part of the Eastern Cape. The relevant local authorities overseeing the project are the Sarah Baartman District Municipality and
the Sunday’s River Valley Local Municipality, as the entire length of the road falls within the two. The successful execution of this project will strengthen RMSC’s reputation in the region and the wider construction industry. To bolster its advantageous position, the company’s key priorities for the coming year include ensuring a
safe environment for all stakeholders on its projects, as well as meeting specific targets and timelines. Meanwhile, RMSC will also continue its ongoing investment in employee training and development, whilst exploring opportunities for growth and diversification within the construction industry.
Africa Outlook Issue 105 | 43
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RAUBEX ROADS AND EARTHWORKS CONSTRUCTION
RAUBEX KZN As the fourth subdivision of Raubex Roads and Earthworks, Raubex KZN (RKZN) operates across KwaZuluNatal, whilst also working in other provinces simultaneously if needed. “Our clients and activities have changed to keep up with all the recent growth of our megaprojects,” says AJ Kruger, Managing Director of RKZN. “Strategically, we try not to have all our eggs in one basket and aim to expand our client base.” Kruger is deservedly proud of the success RKZN has enjoyed, having first started with Raubex Roads and Earthworks in the mid-1990s after graduating from Technicon Free State CUT in South Africa. However, he always knew that he would be an influential figure in the industry.
“ O U R H I STO RY G I V E S U S T H E A D VA N TA G E A S W E W E R E F O R M E D F R O M F O U R S P E C I A L I S T C O M PA N I E S , SO WE CAN HANDLE JUST ABOUT E V E RY P OSS I B L E R OA D CO N ST R U C T I O N SITE THERE IS” – A J K R U G E R , M A N AG I N G D I R E C TO R , R AU B E X K Z N
AJ Kruger, Managing Director, Raubex KZN
“I grew up in a construction home as my father was a building contractor and my uncle was a civil engineer. Construction is just part of who I am,” he fondly says. Kruger initially began his time with Raubex as a Construction Surveyor and was keen to gain valuable knowledge from his surroundings and progress through the company as he obtained more experience. Fast forward to 2021, and Kruger was given the role of Managing Director, having taken the company to new heights for approximately three years. 46 | Africa Outlook Issue 105
RKZN’s eclectic team means that the company has the necessary skills and experience across all departments of road construction. “Our history gives us the advantage as we were formed from four specialist companies, so we can handle just about every possible road construction site there is.” As such, the company’s repertoire ranges from standard greenfield bulk earthworks and road construction to projects that focus on road rehabilitation, which is becoming more common recently.
Moreover, RKZN’s other key areas include asphalt milling and fine milling, as well as specialising in asphalt paving, seal works, and milling operations. “We are one of the few companies in the country that can produce in-plant bitumen stabilised materials (BSM) using recovered asphalt (RA) and the placement of BSM with pavers as base course layers on roads,” Kruger elaborates. Notable projects of RKZN include the upgrade of National Route 2 (N2), spanning the KwaMashu Interchange to the Umdloti River Bridge.
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RAUBEX ROADS AND EARTHWORKS CONSTRUCTION
“This is the first megaproject taken on by RKZN, and we are very proud of the progress and the level of execution achieved. We have a very large staff contingent gaining invaluable experience on this project,” Kruger explains. Moreover, RKZN was responsible for the construction of the civil and electrical infrastructure at Dube Tradeport, specifically working on Agrizone 2. The project is strategically located adjacent to King Shaka International Airport, providing additional support for trade. “This is a special project for us as it is nearly complete, will be delivered on time, and is within the client’s budget. “It has so many different aspects and can be seen holistically as an infrastructure project that started from the greenfield zone to an operational trade zone for the agricultural sector.” This operation included managing the mass earthworks of Agrizone 2 as well as implementing a stormwater management system to harvest ponds. RKZN also constructed a two-lane main access road, accompanying guardhouses, and an internal roads network. Moreover, the company implemented access control and CCTV surveillance, bulk electrical infrastructure, clear view perimeter fencing, erosion protection for landscaping and signage, and constructed paved walkways for pedestrians and cyclists.
RAUBEX KZN IMPROVEMENTS TO N2 KWAMASHU Capacity improvements to N2 from the KwaMashu Interchange to the Umdloti River Bridge include: • Widening in the median for both carriageways. • Widening on the outside for both carriageways. • Construction of a 4.2 kilometre (km) concrete median barrier wall. • Building of vertical cutting retaining walls on the outside. • Construction of vertical fill retaining walls on the outside. • Sufficient drainage for the widening of the carriageways, including open drains, catch pits, and manholes. • Remedial work to the main carriageway’s existing pavement, including its mill and replacement. • Rehabilitation and widening of existing structures, including bridges and culverts. • Implementation of electrical works, including street lighting. • Concrete and structure work conducted by EMPA Structures, a part of the Raubex Infrastructure Division.
RAUBEX ROADS AND EARTHWORKS CONSTRUCTION
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Africa Outlook Issue 105 | 49
ON THE ROAD TO GREATER SUCCESS Raubex Roads and Earthworks endeavours to continue to grow and improve through four key, strategic areas. Firstly, Raubex Roads and Earthworks strives to select projects that align with its values and future direction, supported by a focus on securing contracts that match the division’s trajectory and expanding repertoire. “This means having a steady stream of work to keep our division strong. While we plan to grow, we’re also mindful of expanding at a measured pace without compromising on having enough skilled people to handle our work effectively,” comments Jaco van der Bijl, Managing Director of the division. Another important goal for the company is to ensure the diversification of its projects, branching out beyond construction to clients in sectors such as mining. In turn, this will create a more balanced portfolio and make room for emerging opportunities. Lastly, the division is also delving into the public-private partnership sector. “We see this as a chance to evolve while also being wary of unmanageable growth. As such, we 50 | Africa Outlook Issue 105
will explore new avenues and strive for success in the evolving landscape of construction and related industries with Southern Africa,” van der Merwe envisions. “Our priorities as a team are to execute these contracts to a high standard. We need to focus on profitability and managing the rising costs of materials. We work hard on finding innovative ideas to make processes on-site easier and more profitable,” Kruger affirms. “People retention is also a great focus for the division going forwards, as it endeavours to cultivate a culture that is welcoming and offers consistent career development and growth,” van der Bijl adds.
UNITING AS ONE DIVISION Each company is a vital component of the wider division, creating an enterprise that is well supported in not only meeting but exceeding its clients’ expectations. For example, due to the sheer operational size and abundance of megaprojects, RCON has the capabilities to harness the expertise of the three other affiliated entities, as well as the Infrastructure and Construction Materials divisions, by leveraging their skills and capabilities. This is endorsed by the likes of
RMS, who work closely with RCON by taking care of all the surfacing required of its projects, whilst also assisting across other regions with additional paving, chipping, slurry, and hydro cutting. “Our specialised skills are used by the whole of the division, and we are providing back up in all departments to have a complete package in terms of execution. This position enables us to grow as a division and increase our skills and ability to take on megaprojects without losing a night’s sleep. Consequently, we are in the right place at the right time,” reflects van der Bijl. Through the close support of each entity in the division, the overall capabilities of all the companies are strengthened, as van der Bijl elaborates. “This vision may encompass aspects of quality construction, sustainability, innovation in road infrastructure, and a commitment to meeting the evolving needs of communities and stakeholders.” As the saying goes, ‘if anyone can, Raubex can!’
RAUBEX ROADS AND EARTHWORKS www.raubex.com
RAUBEX ROADS AND EARTHWORKS CONSTRUCTION
Unitrax Trade & Invest +27 082 855 962 | admin@unitrax.co.za
Africa Outlook Issue 105 | 51
STEFANUTTI STOCKS – SETTING THE INDUSTRY STANDARD IN AFRICA Stefanutti Stocks is one of South Africa’s most prominent listed construction companies. It delivers infrastructure development projects, of any scale, to diverse sectors within the built environment across South Africa and its neighbouring regions. Its decades of industry experience and steadfast delivery of excellence in execution has positioned Stefanutti Stocks as a premier brand that is built on innovation and a foundation of common values (which include an uncompromising commitment to safety and quality). In addition to the more traditional civil engineering and construction activities Stefanutti Stocks offers specialist, niche construction expertise in the fields of fast-track data centre and industrial plant construction, geotechnical and piling, renewable energy, oil and gas (including in house pipe spool fabrication), precast concrete (manufacture and construction), bridge construction, slip forming, mechanical and piping, electrical and instrumentation, materials handling and tailings management. It is the country’s leading concrete rehabilitation, repair, and maintenance contractor. The Group boasts technical proficiency across all of its disciplines, and offers clients a collaborative full-service package, as well as a single point of accountability for mega project delivery. It has positioned itself as an invaluable project partner, with a reputation for offering innovative solutions and a proven ability to deliver projects cost effectively, safely, on time and to the required specification and scope.
The Group’s strengths lies in: -
the solution-based culture it brings to the project teams it is involved with
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its diversity and strategic positioning within the Southern African construction landscape
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an ability to seamlessly mobilise across the group
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its technologically advanced approach to managing construction sites
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its ability to offer a single-point of accountability, removing the interface risk from the client domain
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an ability to leverage its experience in creating a support and project infrastructure in even the harshest environments
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its successful recruitment and up-skilling of local communities as part of project deliverables
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its commitment to sustainability and transformation
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its streamlined shared services, management systems and policies
A view down the Ezulwini Valley where Stefanutti Stocks Eswatini has completed a number of high profile projects including most recently the FNB Headquarters.
Capacity
Disciplines
In South Africa, Stefanutti Stocks is a B-BBEE Level one contributor (SA)
The combined capabilities of the Stefanutti Stocks disciplines enables
with a Grade 9 rating from the CIDB, providing the group with unlimited
the Group to offer a multidisciplinary construction solution to its clients
tender capability. Each of its disciplines can mobilise and operate across
across all the regions within which it operates.
the country as well as cross-border, should contract opportunities arise
The Group’s scope of niche and traditional engineering and
– meaning that the group's capacity and capability to undertake mega
construction-related activities span the disciplines of buildin, civils,
projects spans its entire geographic footprint.
geotechnical, roads and earthworks, electrical and instrumentation,
Geographic footprint The group’s geographic footprint spans all provinces of South Africa and some Sub-Saharan African countries. Stefanutti Stocks has established operations and is a highly-regarded local contractor of choice in Botswana, Eswatini, Malawi, Zambia, and Zimbabwe.
mechanical (including water clarification), renewable energy (with a focus on balance of plant construction), oil and gas (including bulk tank construction and in-house pipe spool manufacturing), and mining services (spanning materials handling and tailings management). Infrastructure The Group constructs the full spectrum of public and industrial civil infrastructure and undertakes contracts in the transport (road, rail, and air), energy generation, heavy industrial, oil and gas, water (dams, conveyance, storage, effluent and water treatment plants), and mining sectors. The Group also boasts over five decades of experience in constructing award-winning buildings across southern Africa for the public and private sector, including global brands and international clients. Stefanutti Stocks has an established track record of constructing and delivering data centers and associated infrastructure. Its broad spectrum of expertise, strong solution-based culture, and capacity within the construction environment – including in-house MEP and the utilisation of a BIM platform throughout the project – supports seamless (even early) commissioning.
The Zimplats' Selous Metallurgical Complex (SMC) in Zimbabwe where Stefanutti Stocks is currently constructing mining infrastructure for the SMC SO2 Abatement and Smelter expansion project.
General Contracting in Africa
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Stefanutti Stocks has established operations outside of South Africa that are reputed to be amongst the best general contractors in their regions. Its operations in Botswana, Eswatini, Malawi, Zambia and Zimbabwe undertake building (airports, commercial and industrial) construction projects, civil works including water treatment works, reservoirs, bridges, and dam construction, agricultural land development, as well as bulk earthworks, road construction and rehabilitation contracts. In co-operation with the Group’s disciplines, the Stefanutti Stocks Africa region can offer clients the full spectrum of the group’s capabilities which include renewables, mining services, mechanical, electrical and instrumentation, and oil and gas.
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Recent Projects In South Africa, amongst many other multidisciplinary construction contracts, Stefanutti Stocks recently slipformed the Ivan Plats headgear – one of the largest headgears constructed in South Africa to date, completed the Zandvliet Wastewater Treatment Work for the City of Cape Town, completed the SAPREF R Tanks project in joint venture with VJ Tanks SA, constructed a new 132 kV client-owned High-Voltage (HV) substation in the Western Cape, and delivered infrastructure for a new 70MeV Cyclotron for iThemba Labs. Some current Stefanutti Stocks project highlights across the sub-Saharan continent include projects for Coca Cola Beverages, Barlow World, and a prestigious HQ redevelopment project in Botswana, the Manzini Interchange, CONCCO warehouse expansion, and a new head office for FNB in Eswatini, as well as the Lusaka Commercial Cold Store for Imperial’s Namibian Deep Catch Group, and the recently completed Radisson Blu Mosi-oa-Tunya Hotel Livingstone in Zambia. Captions: 1.
The CONCCO warehouse expansion in Matsapha, Eswatini.
2.
A recently completed new 132 kV client-owned High-Voltage (HV) substation.
3.
The two 24,307m3 fuel storage tanks that were designed and constructed for Transnet.
4.
The recently completed Manzini Golf Course Interchange project for Eswatini's Ministry of Public Works and Transport.
3
A view of the completed Radisson Blu Mosi-oa-Tunya Hotel Livingstone, a premier sustainably focused river-front resort, with 200-rooms and countless luxury facilities.
award-winning, world-class construction
The Fulton award winning, mixed-use Fairscape Precinct in Gaborone.
Stefanutti Stocks is a listed, multidisciplinary construction with the capability to deliver a range of projects of any scale to a multitude of clients in diverse markets. As an ambitious, well-respected, diverse construction group we boast technical proficiency across all our disciplines of Building, Civils, Renewable (focusing on balance of plant construction), Geotechnical, Roads & Earthworks (including bulk pipelines), Oil & Gas, Electrical & Instrumentation, Mechanical, and Mining Services (including Tailings Management and Materials Handling).
South Africa: Inland Region: +27 11 571 4300 Coastal Region: +27 31 835 3300 Western Cape Region: +27 21 834 6700 Africa Region: Botswana: +267 397 4773 Eswatini: +268 2518 5006 Zambia: +260 211 285623 www.stefanuttistocks.com Follow us on LinkedIn.
FIRM F O U N DAT I O N S
An unpredictable economic landscape has resulted in continued modifications within the African construction industry of late. Deon Robinson, Managing Director of WBHO Building Africa, shares how his company stays abreast of these changes Writer: Lily Sawyer | Project Manager: Kierron Rose
A
s the African construction industry continues to face political instability, currency fluctuations, and associated turbulence, many businesses have been left picking up the pieces. However, the robust business model of WBHO 56 | Africa Outlook Issue 105
Construction Pty Ltd (WBHO), built on a foundation of trusting client relations, meticulous planning, and a strong and dependable team of employees, has ensured that the company is able to rise above any challenge. Whilst staff and resources can sometimes be limited, and
WBHO CONSTRUCTION PTY LTD CONSTRUCTION
varying conditions present obstacles, WBHO prides itself on implementing forward planning to ensure that projects can always be completed on time and within budget. “As we all know, there are certain countries where the risk is just too high, so we choose locations where we have
a footprint and understand the local people, local law, and the weather conditions,” opens Deon Robinson, Managing Director of WBHO Building Africa. Robinson has been fascinated by the construction industry for over 33 years. His involvement in WBHO Africa Outlook Issue 105 | 57
over the past 14 years has seen him participate in cross-border projects whilst experiencing a variety of cultures and countries has been of interest, including projects within South Africa’s borders. “The dynamics of working across borders are very different from inland projects, and you get to meet and understand people from all different countries and diverse cultures,” he explains. Robinson, whose commitment to the African construction market remains strong, believes that wider external investment will help it to grow. “There is huge potential in the African market, and there are investors out there who will spend their money in stable regions, so we just have to be patient and look out for the right opportunity,” Robinson clarifies.
DIFFERENT FROM THE COMPETITION As a company, WBHO prides itself on standing out from the crowd. According to Robinson, this can be attributed to a company culture that WBHO has worked hard to cultivate, 58 | Africa Outlook Issue 105
where employees take priority. “It boils down to a culture where safety, training, recognition, and the future of all our employees are our highest priority,” Robinson explains. Compared to others, WBHO is a company that possesses considerable continuity within the construction industry, whilst its senior management team is experienced, well-versed, and capable. Indeed, for WBHO, it is the people behind the company that make all the difference, both in terms of capability and in securing the sustainability of the enterprise itself. Within the landscape of South Africa’s renewable energy infrastructure, WBHO is growing. As an area of attention for future development, the company recognises that the renewable energy market has the potential to expand WBHO nationally and further into the rest of the world. Africa’s renewable energy output is not currently on par with that of sustainability giants in Europe. Going forward, however, the company is hopeful for change.
WBHO’S COMPANY CULTURE – AT A GLANCE • The ‘WBHO Way’ includes a strong culture of professionalism and respect. • Extensive industry experience is built on the foundation of responsive senior management. • A conservative approach to risk management leads to risktaking outside of a traditional construction skill set. • WBHO’s presence in all divisions across 12 countries and two continents points to its capability to pursue opportunities across numerous geographies. • A broad technical range of products and services leads to sector specialisation. • WBHO’s 2023 projects point to its ability to consistently execute large-scale projects.
WBHO CONSTRUCTION PTY LTD CONSTRUCTION
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Africa Outlook Issue 105 | 59
WBHO CONSTRUCTION PTY LTD CONSTRUCTION
“ I T B O I L S D O W N T O A C U LT U R E W H E R E S A F E T Y, T R A I N I N G , R E C O G N I T I O N , A N D T H E F U T U R E O F A L L O U R E M P LOY E E S A R E O U R HIGHEST PRIORITY” – D E O N R O B I N S O N , M A N AG I N G D I R E C TO R , W B H O B U I L D I N G A F R I C A
AFRICA OUTLOOK: HOW IMPORTANT IS WBHO’S SUPPLY CHAIN TO YOUR OPERATIONS? Deon Robinson, Managing Director: “We have two chains
With an abundance of natural wind and sunshine to facilitate the production of renewables, and as the industry is only just taking off in the country, Africa is well equipped to fuel a considerable renewable energy revolution.
ONGOING PROJECTS Having established a reputation for quality, reliability, and timely delivery, WBHO regularly exceeds client expectations. The company carries out office and commercial building construction, including retail, hotels and resorts, healthcare, leisure, recreation, and education, as well as residential projects. “WBHO is recognised as a leading principal contractor in the African building industry,” Robinson informs. The company’s many construction projects, distributed around the continent, are emblematic of its recent success. WBHO’s standalone West Africa office in Ghana, where the company has been based for over 20 years, oversees many of its developments. Projects in Ghana primarily take place in the country’s capital, Accra. Construction was initiated when WBHO realised that, following the COVID-19 pandemic, the market and economy in Ghana began to pick up between 2022 and 2023. The company’s operational staff at all Ghanaian sites are motivated and hard-working, ameliorated by WBHO’s ‘employees first’ attitude at both on-the-ground and management levels. WBHO is also focusing on moving into 60 | Africa Outlook Issue 105
the data centre space, and further concentrating on residential construction. Project Zambia, completed in late 2023, took place in Lusaka, where the iconic InterContinental Lusaka and Holiday Inn Hotels were refurbished to create a social attraction in the city. Upgraded conference facilities in the structures feature new technological advancements, whilst external works to the pool areas have been included in the refurbishment. This project can be seen as a prime example of WBHO’s positive relationship with its subcontractors, such as on-site agents, quantity surveyors, engineers, and foremen. To foster positivity in this instance, WBHO conducts biweekly meetings in which the company’s values of collaboration and teamwork are prioritised. WBHO understands that, without its subcontractors, its projects could not be completed. WBHO’s Botswana-based projects include the Botswana Accountancy College and a refurbishment of the Diamond Trading Centre (DTC), both of which are located in the capital city of Gaborone. These projects can be seen as emblematic of the company’s successful importation of materials from a range of suppliers, in which the logistics and procurement supply chain plays an important role. Finally, Project Lesotho, located in Polihali Village in the country’s Mokhotlong District, will entail the construction of 110 permanent housing units, a visitors’ lodge including a 32-key boutique hotel, a school, a recreational centre, and a
of supply – subcontractors and suppliers. The key with subcontractors is to form relationships with upstanding and worthy companies and make them part of your team. “They are not freestanding, and if managed correctly, they will be an integral part of the success of a project, no matter what the challenge is. “For suppliers, it is important to make sure that they are able to supply products on time, within budget, at the correct quality standard, and deliver on time. “We believe that strong relationships must be cultivated with both subcontractors and suppliers in order to succeed.”
sports facility, with a gross site area of 14,500 square metres (sqm). The planned construction is located on top of a mountain, overlooking the future dam wall and reservoir; the project’s location is symbolic of WBHO’s elevated reputation as a result of its recent growth.
INVESTING IN EMPLOYEES WBHO brings expertise to each new undertaking to ensure a guaranteed level of quality and reliability while also presenting the company as a hub for professional development and growth.
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WBHO CONSTRUCTION PTY LTD CONSTRUCTION
To celebrate hard work, employees are rewarded with an empowering workplace environment that prioritises training and nurtures talent to ensure that the business grows and develops future leaders from within. Training and staff development is a major focus of investment in allowing WBHO to securely and sustainably deliver the levels of quality, safety, and reliability that its name is synonymous with. The company ensures that its most senior people are involved in the talent hiring process. Successful candidates then embark on mentorship programmes with more senior candidates, who follow their progress on the scheme and regularly check in on them, both professionally and personally. Prospective employees also undertake vacation work on WBHO projects, where they gain invaluable on-site experience. After graduating from various bursary schemes and employment drives, and joining WBHO full-time, they will attend engineering schools, beginning with an initial and extensive introduction to both the company and the wider industry. As they progress, employees can choose to specialise in engineering topics before being qualified in a specific area. Those who go on to advanced engineering school will have been in education for close to 10 years. In addition, young engineers and quantity surveyors are offered further guidance with various support systems within WBHO to become professionally registered through the South African Council for the Project and Construction Management Professions (SACPCMP), the Engineering Council of South Africa (ECSA), and Management Development Programme (MDP) courses. Those that emerge with management development qualifications usually opt to fulfil a
managerial role within the wider WBHO corporation. Finally, sponsorship programmes for engineers and quantity surveyors are also designed to pair directors with trainees as a means of further progression.
POWERFUL PRODUCTION At present, a large portion of WBHO’s business model is based on engaging with speciality subcontractors that undertake a large proportion of labour, reducing the need to maintain a large complement of staff. However, this model differs from country to country; for example, WBHO directly employs 70 percent of the labour involved in Project Lesotho and Polihali. On the production side of the business, WBHO has a structured training programme whereby foremen attain a South African National Qualifications Framework (NQF) registration or follow an accredited skills development course. “These are people who typically don’t have a diploma or a degree but possess many years of construction experience and have come up through our ranks. We have a huge push to get them through these programmes, and currently, more than 80 percent of our foremen have these accredited qualifications,” Robinson shares. “The main objective in the coming
year is to grow the order book and create more job opportunities in select African countries.” These comprehensive programmes ensure that all WBHO talent is well-equipped and prepared to hit the ground running, with a solid understanding of what is expected of them and how to perform their work safely in an environment that respects them and their contributions. WBHO prides itself on a target of zero harm to all people at its workplaces. The company believes that this begins with leadership and a strong commitment to having a safe organisation, whilst this ethos is cultivated and prioritised through the collective behaviours and actions of every person in the workplace. On its Polihali project alone, WBHO carried over 2.7 million working hours, in which none was lost to injury time. Notably, the Building Africa division as a whole has avoided lost injury time for over 13 years, owing to its passionate commitment to health and safety. “Safety, training, recognition, and the future of all our employees are our highest priority,” concludes Robinson.
WBHO CONSTRUCTION PTY LTD Tel: 011 321 7200 wbhoho@wbho.co.za www.wbho.co.za Africa Outlook Issue 105 | 63
INTEGRAL INDUSTRIAL SERVICES
Laszlo Fagyas, Business Development Director at RSC Group, discusses delivering world-class industrial services across the continent Writer: Jack Salter | Project Manager: Kierron Rose
64 | Africa Outlook Issue 105
RSC GROUP CONSTRUCTION
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or the successful delivery of projects in the most remote and harsh African environments, there is a preferred industrial services partner of choice. That partner is RSC Group (RSC), founded in 1987 by Louis Sacks and based at a seven-hectare (ha) blasting and painting facility in Krugersdorp, South Africa, which is one of the biggest in the southern hemisphere. RSC has evolved from a local jobbing facility to an international projects company, and is now the leading
industrial services provider in Africa, spearheaded by group Managing Director, Matthew Laing. “The facility typically handles about 1,000 tonnes of steel per month that comes in, gets blasted and painted, and then gets transported and shipped up into Africa,” opens Laszlo Fagyas, Business Development Director at RSC. “A lot of the steel that you find on the major plants and structures being built in Africa has been touched by this yard.”
Originally a corrosion protection entity offering abrasive blasting and protective coatings, RSC has evolved to deliver full turnkey industrial solutions on projects across the continent. By providing the world-class quality and uncompromising safety expected of RSC from its multinational partners and world-class asset owners, the business has enjoyed rapid growth and now boasts an extensive African footprint. “RSC has grown organically with Africa Outlook Issue 105 | 65
RSC GROUP CONSTRUCTION
Sasol
Engen
Kusile
logical extensions of our brand, and I think that’s where part of the group’s formidable strength comes from. We’ve never really grown in an inorganic way; it’s been slow, consistent, methodical growth, but we have had a huge spurt in the last few years since the COVID-19 pandemic,” informs Fagyas.
INDUSTRIAL HUBS Complementing its Krugersdorp facility, which has the scale to double its capacity to 2,000 tonnes of steel per month, another key strength of RSC has been its ability to deploy to industrial hubs across the African continent, and from there to service remote sites. Indeed, the group has grown its presence with branches in 12 other African countries, namely Namibia, Botswana, Zimbabwe, Mozambique, Tanzania, Kenya, Zambia, the Democratic Republic of the Congo (DRC), Ghana, Liberia, Mali, and most recently, Uganda. 66 | Africa Outlook Issue 105
“ R S C H A S G R O W N O R G A N I C A L LY W I T H LOGICAL EXTENSIONS OF OUR BRAND, A N D I T H I N K T H AT ’ S W H E R E P A R T O F T H E G R O U P ’ S FO R M I DA B L E ST R E N GT H COMES FROM” – L A S Z L O FA G YA S , B U S I N E S S D E V E L O P M E N T D I R E C T O R , RSC GROUP
This has enabled localised maintenance services to be provided to mines, power stations, and numerous industrial facilities by RSC, who establishes new branches in these countries once it has a good understanding of how the local industry operates and is always on the lookout for further growth opportunities in new locations. “It wasn’t long before the potential was identified to touch up steel on-site in other countries, so if steel was being shipped up to DRC, for example, then we would deploy a team there,” Fagyas tells us. “The touch-ups that were done
on-site have evolved RSC into a project-based company, and it has been a substantial sector of growth on the project side.” RSC’s developed footprint in Africa is a point of differentiation and has allowed the group to weather storms such as the COVID-19 pandemic, when most of its operations were suspended in South Africa. It has also been ahead of the curve in terms of local partnerships in each country that are based on merit, consistency, and delivery, ensuring compliance in RSC’s operations. These extensive supplier relationships and economies of scale have also
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been leveraged by the group to source the best products and provide value in terms of capacity and product availability. “Most importantly, it gives us the social license to operate in that country and acceptance by the communities and stakeholders. That’s key for us.” The ability to scale and grow has likewise been achieved by leveraging a dedicated shared services centre in South Africa, which supports the entire group and critically enables RSC to keep its cross-border branches lean and agile. This is along with Africa-hardened, cross-trained personnel that further increase RSC’s agility and responsiveness, and are ready to support multinational organisations on their African projects. “We provide authentic empowerment and skills development where it’s needed. These are practical, day-to-day, applied skills that are required, and that’s what we focus on within the group,” emphasises Fagyas. As a family-owned business
BOUQUET OF SERVICES
with a number of long-serving employees, multinationals are also pleasantly surprised when entering into a contract, as RSC is not a highly commercial organisation, and it prioritises getting the job done, even in testing environments. “We work on old family values, and if we start the job, we’re going to finish it. Sometimes that means throwing significant costs, people, and resources at a project because making the delivery date is more important than the bottom line.” Equal emphasis is given to quality and safety, which are both cornerstones of the RSC culture with ISO45001 and ISO9001 certification.
RSC has grown its bouquet of industrial service offerings through the logical extension of its core capabilities and brand. This includes the addition of scaffolding and rope access techniques, which were both incorporated as a prerequisite for corrosion protection access. “We needed access wherever we were painting on-site, so we had to incorporate scaffolding and systematically bought a considerable tonnage of scaffold to provide our own access on sites as opposed to relying on third-party contractors,” shares Fagyas. The group also offers acid lining, tank lining, insulation, cladding, sheeting, denso pipe wrapping, thermal spray aluminium, rubber lining, concrete rehabilitation, and fire intumescent coating services, utilising RSC’s internal core engineering expertise and asset base. “Because we’ve got engineering expertise in terms of coating and preparation, it gave birth to additional
“ W E P A R T N E R W I T H M U LT I N AT I O N A L S W O R K I N G A C R O S S A F R I C A ; T H AT I S O U R K E Y S E G M E N T A N D C O R E B U S I N E S S ” – L A S Z L O FA G YA S , B U S I N E S S D E V E L O P M E N T D I R E C T O R , R S C G R O U P
RSC GROUP CONSTRUCTION
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product lines. We specialise in all types of coatings, and we’ve just taken on more and more scope,” Fagyas informs us. Fire intumescent coatings form part of RSC’s dedicated passive fire protection services, applied to steel structures such as high-rise buildings, office blocks, or airport control towers to provide fire resistance. RSC‘s fire division is looking at expanding into active fire protection systems in the near future. Throughout Africa, there are also still huge amounts of asbestos present in structures, which was once popular for fireproofing and insulation. Asbestos removal was, therefore, another logical add-on to RSC’s portfolio, especially when operating remotely and across the border. “We have accredited asbestos removal capabilities. It just didn’t make sense to bring in contractors, so we are registered and certified with the Department of Health,” notes Fagyas.
Industrial sheeting
Concrete rehabilitation
Denso wrapping
Africa Outlook Issue 105 | 69
RSC GROUP CONSTRUCTION
RSC SERVICES – AT A GLANCE • ABRASIVE BLASTING • INDUSTRIAL PAINTING • CONCRETE REHABILITATION • HOT, COLD, AND ACOUSTIC INSULATION Asbestos removal
• INDUSTRIAL SHEETING • FIRE PROTECTION • ROPE ACCESS • PIGGING • CORROSION PROTECTION • SCAFFOLDING • SECONDARY CONTAINMENT AND ACID-PROOF LININGS • UHP CLEANING
Corrosion protection
• DENSO STEEL PROTECTION • RUBBER LINING • ASBESTOS REMOVAL
Abrasive blasting
UHP and HP cleaning
70 | Africa Outlook Issue 105
Insulation cladding
RSC GROUP CONSTRUCTION
Plural coating facility
RSC weighbridge
An additional recent add-on for the group is RSC Industrial Supplies, focusing on the provision of site-related personal protective equipment (PPE) and common industrial consumables. RSC employs 2,000 to 6,000 people at any one time and has developed a significant economy of scale and sourcing expertise for these basic mandatory requirements. It was another logical extension of its service and brand, which is now present in all of RSC’s countries of operation.
SINGLE POINT OF CONTACT The application and surface preparation for corrosion protection also provide various blasting methodologies and ultra-high pressure (UHP) cleaning to RSC’s list of core services. Surface preparation takes place before the application of paint, and RSC has built its own large department that handles UHP cleaning, which is so powerful it can cut steel. UHP cleaning is a relatively new innovation and exemplifies how RSC utilises the latest technologies where possible and makes them available to the end user.
RSC head office yard
“UHP only came out a few years ago, but we jumped on board and now have an extensive fleet of UHP machines,” says Fagyas. RSC has a rubber lining facility boasting two autoclaves and the capability to provide rubber lining services on-site. RSC supplies wear and corrosion protection on chutes, piping, and tanks using high wearresistant natural rubber. RSC also has a pipe pigging capabilities, offering inspection, desludging, and maintenance services. Pigging reduces the environmental impact of cleaning operations whilst reducing the loss of product and avoiding the need for line flushing. “With these sorts of capabilities, we therefore offer a single point of contact to numerous clients for multiple industrial services,” Fagyas explains. This single point of contact approach allows a client to receive numerous industrial services from a single contractor, saving them significantly on a single fixed and time-related cost. It also allows the asset owner to enjoy peace of mind in receiving numerous world-class services from a single credible
long-term partner. By combining all of these highly specialised and certified services, considerable savings are passed on to asset owners across the continent. There are numerous ongoing projects in progress that RSC is excited to be involved in, including five power station maintenance contracts in South Africa, and supporting eight of the world’s top 20 mining companies with maintenance contracts. An exciting recent green project is the provision of insulation and cladding along with scaffold provision for a molten salt power plant and solar array in the Northern Cape, adding a new green dimension to RSC’s services. “It’s likely that we will take on more industries within our scope, but once again, it will be done organically and smartly without too much fanfare or risk,” concludes Fagyas.
RSC GROUP rscgroup.co.za Africa Outlook Issue 105 | 71
DIGISTICS SUPPLY CHAIN
DEL C
Amidst a landsc economic change, ele supply issues, and c unrest in South A remained resilient. Th Renier Du P Writer: Lily Sawyer |
72 | Africa Outlook Issue 105
L I V E R I N G S U P P LY CHAIN SUCCESS
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cape of continuous ectricity and water considerable social Africa, Digistics has he company’s CEO, Preez, tells us more Project Manager: Taylor Green
Renier Du Preez, CEO
ollowing considerable turbulence caused by the recent COVID-19 pandemic, supply chain operations in South Africa have seen much disruption. As companies began to source supplies more locally, new relationships were forged amidst a changing economic landscape. Digistics, a South African supply chain and distribution operations company, has learned to quickly adapt in the face of disruption by having an astute awareness of its sales and costs, which naturally point to potential structural concerns. As a result of its continued diligence, the company remains engaged, optimistic, and enthusiastic about the supply chain industry in the country.
Africa Outlook Issue 105 | 73
Efficient – Reliable – On The Move
CONTACT US 0817133471 / 083 560 1385 / 061 441 1192 vickystransport@telkomsa.net isha@vickystransport.co.za vickystransport.co.za
DIGISTICS’ VALUEADDED LOGISTICS EXECUTION • Value-added logistics services • Demand management • International freight management • Inbound management • Warehouse management • Transport management • Distribution management
SUPPLY CHAIN MANAGEMENT • Consulting services • Technology solutions • Managed services • Contract logistics • Management solutions
76 | Africa Outlook Issue 105
“The supply chain is really one of the most exciting areas to be in; there’s just so much that’s happening,” opens Renier Du Preez, CEO of Digistics. Offering primary and secondary logistics solutions, Digistics works to promptly move products from suppliers to distribution centres. The company also has significant capacity for storage logistics solutions, and its vision to provide ‘the perfect delivery’ is enabled by prioritising its customers’ needs. “Our mission is to provide customers with a competitively priced supply chain business solution. We try and synchronise the critical exchange between information and people,” he details. Digistics’ main focus is on the restaurant industry, and it works with a whole host of global brands, including KFC, King Pie, McDonald’s, Ocean Basket, Burger King and Pizza Hut. Its commitment to service, quality, and
cutting-edge systems and technologies allows the company to maintain strong relationships with its clients and cultivate a reputation for excellence. With distribution centres across South Africa, in Cape Town, Durban, Gqeberha, Bloemfontein, and the Gauteng region, the company employs around 1,184 members of staff and boasts over 287 fleet vehicles across the country. Digistics focuses on creating a highly competitive service for its customers, and with the support of its holding company, Super Group Holdings (Super Group), a broadbased supply chain management business listed on the Johannesburg Securities Exchange (JSE), has allowed it to continue to meet this objective. “Our relationship with Super Group helps us to unlock opportunities and assists the company more widely,” explains Du Preez.
DIGISTICS SUPPLY CHAIN
Super Group is essentially a supply chain mobility company revolving around the optimisation of supply chain processes and vehicle fleets, with a strong IT focus and technology underpin. The supply chain division provides a platform for the group’s core expertise and offerings, which is applied to vertically integrated across companies offering logistics services across industries within South Africa. Founded in 1986, Super Group has an international footprint and offers customers a comprehensive range of products and services. In essence, Super Group integrates supply and demand management within and across companies. In 2012, 51 percent of Digistics’ shares were sold to Super Group, who later bought out the balance of the remaining shareholding in 2017, which
has allowed Digistics to grow significantly over a short space of time.
STANDING OUT FROM THE COMPETITION Notably, Digistics’ business model sets out to define the company as a logistics partner and not just another service provider. “We exist, live, and breathe the success of our partnerships. We’ve had 100 percent retention of all our contracts since inception and we focus on continuing to deliver customer success. It almost flows through the veins and the blood of our existence,” enthuses Du Preez. Digistics believes that by keeping its partners’ interests at heart, it can present disruptive and tailored solutions driven by customer needs. Something that allows Digistics to execute its quality targets consistently
in a supply chain context is its vehicle design. Each vehicle allows the company to transport frozen produce and ambient product from supplier to customer without the need to mix, chill, or dry, instead prioritising product quality by keeping it chilled at the correct chill temperature. “This is definitely something that is unique, and it talks to the quality of the food that we deliver, because we’re able to maintain the product temperature across the supply chain,” he comments. Digistics cultivates a dedication to assured supply and delivers best-inclass solutions, as it understands that customers cannot often buy the product that they’re looking for in any other supply chain. Du Preez exemplifies this concept through one of Digistics’ global brands, McDonald’s, and its unique offerings.
DIGISTICS SUPPLY CHAIN
“If you’re looking for milk and you can’t get it at one store, you can walk into another store and almost certainly find milk. However, if you want a Big Mac, you can only get that in one place: McDonald’s. We understand the importance of reliably providing our customers with the exact product they need.” Digistics also considers itself to have the best technology on the market, whilst its warehouse design is based on network optimisation, informed by where customers are located to ensure best-in-class pricing. “We are very competitive on pricing, so you’re getting the best quality and the highest reliability for that price,” he excites. Sustainability also plays an important part in Digistics’ operations as the company works to reduce its reliance on fossil fuels, remain 78 | Africa Outlook Issue 105
eco-friendly, and lower overall costs. “Some say that sustainability is expensive, but we’ve found that, on many projects, it reduces costs in the long term,” Du Preez insights. The company believes strongly in playing a role in creating a sustainable future for its immediate community and beyond.
SUSTAINABILITY PROJECTS IN FOCUS Inspired by South Africa’s historic use of local crude oil to create its own diesel, thus reducing nationwide reliance on imported fuels, Digistics has begun to engage in practices to create a circular economy within its own supply chain. Digistics is shrewdly aware that many of its customers, such as KFC, generate a lot of waste in the form of used cooking oils and fats. Such clients are regarded advantageously,
as Digistics has begun to collect the used oils to convert into biodiesel for the company’s vehicle fleet. Use of recycled oils to power its vehicles allows Digistics to achieve lower fuel costs compared to local diesel, reduce its environmental impact, and alleviate its reliance on diesel supplies. “This not only creates a competitive advantage but gives us unlimited access to fuel (biodiesel) should there ever be a shortage in the country or globally,” Du Preez highlights. Digistics is also currently working on developing solar and battery storage solutions for its vehicles. The aim is to achieve one of the nation’s biggest axel-driven fleets, which is recharged by the energy of the vehicles themselves. Motivated by similar battery recharge models in Europe, Digistics has set out to introduce four
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DIGISTICS SUPPLY CHAIN
sustainable axel-driven trailers to its fleet by January 2024. “I believe this will reduce our fuel consumption and add a lot of other benefits with regards to ecofriendliness,” Du Preez reflects. Digistics’ sustainability projects allow the company to create a contingency, whilst reducing costs and creating value for its customers. “That’s why we elected these projects; they’re no brainers and complement what we do as we’re able to create a competitive advantage not just for ourselves, but for our customers in the markets that they operate in,” he insists. Each of Digistics’ distribution centres is provided with an environmental scorecard, tracking the amount of material the company recycles and reuses, its energy and fuel consumption, as well as its landfill contribution. 80 | Africa Outlook Issue 105
WHY CHOOSE DIGISTICS? RELIABILITY – To take pressure away from the customer, Digistics schedules deliveries before and after peak times, and sends notifications prior to arrival. The company understands that reducing delivery time is critical for the customer and allows for increased overall efficiency. TECHNOLOGY – Digistics embraces ongoing technological changes by using the latest warehouse technology to optimise its operations. The company has developed a centralised management system through its control tower, which enables alignment across team members to always ensure customer-centric execution. ADAPTABILITY – Digistics is always ready to collect an emergency order when suppliers cannot deliver and has an emergency customer order ready within an hour. The company also integrates an awareness of route closures within its operations. SUSTAINABILITY – Digistics believes in making early investments to lower its greenhouse gas emissions, and by using the latest routing software to drive efficiency, it reduces the distances travelled. The company is generally focused on a more sustainable, ethical, and responsible future.
DIGISTICS SUPPLY CHAIN
Additionally, the company’s sites all have an environmental management system in place and are on the way to achieving ISO 14001 certification – an internationally recognised benchmark for sustainability.
COMPANY EXPANSION Digistics plans to expand across two facilities in the coming year, whilst a new North Distribution Centre (North DC) will extend the company’s national outreach. A major focus for the company is the integration of solar energy within its distribution centres. In Q1 next year, it plans to implement a ZAR35 million solar battery storage system. “Yes, it’s expensive, but the technology will allow us two hours’ worth of battery savings at night, and up to six hours in the daytime. In total, that’s about eight hours of savings,” informs Du Preez. In the midst of national electricity price hikes, which are anticipated to raise South African electricity costs 82 | Africa Outlook Issue 105
by around 14 percent in the next year, Du Preez considers Digistics’ move towards renewable energy an astute business decision. “For every eight or nine percent that the government increases national electricity costs by, we shorten our payback period with around one year, so it really makes sense,” he explains. Overall, Digistics has so far installed over 3,380 kilowatt hours (kWh) of solar at four of its six distribution centres, with further expansion planned for 2024, adding 7,719kWh of battery storage. The company is also planning to expand its recycling efforts by reusing cardboard from client deliveries. However, the potential of mixing food waste with materials intended for recycling during transportation has presented an obstacle. “You can’t put the waste in with the food that you deliver,” Du Preez explains. “We’re looking at a partnership with
a waste company where we consolidate waste collection, whilst also considering partitioning our trucks into two sections, where you can deliver from one section and collect cardboard and food waste from another.” By streamlining its delivery and waste collection services, Digistics aims to reduce customers as well as its own emissions whilst delivering a cost saving for customers.
OVERCOMING CHALLENGES South Africa’s electricity is supplied by Eskom, a government-owned and managed electricity company. As a growing business whose refrigerated facilities account for a large portion of its trade, Digistics’ reliance on electricity is now more critical than ever. Amidst a national electricity shortage, considerable civil unrest has occurred in South Africa of late. The scarcity of electricity and water presents a real problem for many businesses.
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“Our biggest challenge is our reliance on Eskom and anticipating a national blackout. This has pushed us into thinking more aggressively about how we embrace eco-friendly practices, whilst seeing an opportunity to create less of a reliance on Eskom by generating our own electricity.” Digistics has created a considerable competitive advantage for itself by establishing an in-house electricity supply through the use of large solar capacity and generators that can run all night. “Most of our customers rely on generators powered by Eskom, and as much as 60 to 70 percent of their stock is covered by these generators. There’s a very real chance that the only stock they may have left to trade with after potential blackouts will be sitting at Digistics, powered by our generators and solar reserves,” Du Preez details.
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Digistics also faces challenges presented by South Africa’s water shortage, as a lot of water is used in the company’s refrigeration plant and day-to-day activities. “We’re looking towards a bore hole and filtration solution, and we’re also using rain harvesting. A lot of rain harvesting strategies are in place at the new North DC.” The company has installed water holding tanks of between 15,000 litres (l) to 45,000l at all its facilities. Digistics plans to hold up to 150,000l underground at the North DC to ensure it is more self-sufficient from a water supply perspective. “By bringing a focus on sustainability to the fore, we obtain a self-sufficient mindset. I think this helps us to overcome challenges,” outlines Du Preez.
SOCIAL RESPONSIBILITY PRACTICES The fabric of South African society has been affected by a history of apartheid and unrest. Motivated by a sense of social responsibility, Digistics has founded several initiatives with the objective of uplifting the local community. The company’s work with Shine, a charity that focuses on improving the literacy levels of local children in third and fourth grade, is emblematic of its dedication to social work and its investment in education. “No business can exist without strong communities. It is therefore important that we do our part to make these communities stronger,” Du Preez comments. Additionally, Digistics’ work with Campus, a charity concerned with the care of abused women and children,
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provides much-needed funding to enable the charity to continue with its important work. The company’s investment in Thousand Hills, a charity based nearby in Kwa-Zulu Natal, enables community members in surrounding towns and villages to grow their own food and become self-sufficient. In many ways, Digistics’ activities with Thousand Hills particularly resonate with the company’s own ethos of cultivating self-sufficiency and independence. “I think it’s important for any company that operates within South Africa to be involved with charity work. You’ve got to be relevant to the community that you serve, and that’s why we’ve got quite a lot of activity in that space. “It all starts with extensive training and a focus on extending the operating life of all our assets,” Du Preez reflects.
PRIORITISING PROCUREMENT Naturally, Digistics has a large supply chain operation, and benefits from keeping an in-house procurement team, which allows the company to maintain control over its finances. “Procuring the stock and selling it on means that 85 to 89 percent of our 86 | Africa Outlook Issue 105
turnover is paying for stock. Managing the working capital is therefore critical and can only be done with an in-house procurement team,” he explains. Assured supply is what drives the business and allows Digistics to closely monitor its products, processes, and performance. “Our core existence is based around assured supply. If we can see the product, we know when we’re going to run out or where there’s challenges,” states Du Preez. “This allows us to trigger contingency and make sure we can guarantee supply to our clients.” The company’s focus on assured supply enables it to obtain best-inclass pricing, and independently manage its value proposition to customers. Looking ahead, Digistics intends to accelerate its sustainable biodiesel project with an international rollout. In partnership with its parent company, Super Group, the company is looking to implement the biodiesel initiative more widely across the company’s whole fleet. In addition, Digistics is consolidating its plans to build the new North DC by merging two of its large, older facilities.
“Again, the North DC is focused on the very best that we can get out of sustainability and energy reduction,” emphasises Du Preez. Furthermore, the company is seeking to expand more widely within Africa and further into Europe. “This is a top priority for us because at the end of the day, we’ve got to deal with challenges and expanding the business will help us to do that,” he expands. Digistics is also expanding its information technology and control tower capabilities. At present, the company has a lot of control tower capability, and this plays a large part in how it manages day-to-day planning, function, and physical execution of its processes. “We look for those areas where we can add value to current customers, how we can package their offering, developing disruptive capability, and then grow market shares where the opportunities exist,” Du Preez concludes.
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A future where people, business, and planet thrive together
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New cars that buyers really want
Driving the acceleration of the South African construction industry, we speak to the Managing Directors of the four pillars that have cemented the division as the frontrunner in road construction for nearly 50 years
Issue 1
Treating complex cancer cases from across Brazil
The jewel in Lesotho’s crown
Offering access to a unique global network, reaching hundreds of destinations, and carrying thousands of shipments a day
Championing the voices of its members, communicating the industry’s needs, and highlighting the importance of renewable infrastructure
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Michael Peither, CIO and co-Founder of VoltStorage GmbH, reveals the company’s innovative battery storage solutions spearheading the renewable power sector
Sphere, a model for renewable energy use, is a next-generation entertainment medium revolutionizing the future of live events
Michal Jezioro, President and Managing Director, highlights how DMC Mining Services continuously puts performance first
Moog Medical is having a direct impact on the lives of patients, says Vice President and General Manager, Mike Henderson
Marija Dukovska-Pavlovska, General Manager of Makstil, speaks about the company’s environmentally-friendly steel production practices
the Burkinabe mining industry as a key driver of the country’s socioeconomic development Adama Soro, President of the Burkina Faso Chamber of Mines, unpacks the challenges facing
company contributes to the growth of Australian electrical infrastructure Chris Ware, General Manager of Mayfield Industries, shares how his
innovative battery storage solutions spearheading the renewable power sector Michael Peither, CIO and co-Founder of VoltStorage GmbH, reveals the company’s
entertainment medium revolutionizing the future of live events Sphere, a model for renewable energy use, is a next-generation
how DMC Mining Services continuously puts performance first Michal Jezioro, President and Managing Director, highlights
says Vice President and General Manager, Mike Henderson Moog Medical is having a direct impact on the lives of patients,
about the company’s environmentally-friendly steel production practices Marija Dukovska-Pavlovska, General Manager of Makstil, speaks
in road construction for nearly 50 years pillars that have cemented the division as the frontrunner industry, we speak to the Managing Directors of the four Driving the acceleration of the South African construction
growth, sustainability and prosperity mining and rehabilitation company, that drives BUMA Australia has a vision to build a modern
buyers really want New cars that
PTY LTD PREMCAR
in East Africa digital infrastructure rapid expansion of Facilitating the
and gas exporter Australia’s leading oil
IXAFRICA
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together and planet thrive people, business, A future where
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innovation standard in conservation and Complex setting the global The world-class Olive Downs
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AND EARTHWORKS RAUBEX ROADS
RESOURCES PEMBROKE
infrastructure of renewable the importance and highlighting industry’s needs, communicating the voices of its members, Championing the
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thousands of shipments a day of destinations, and carrying network, reaching hundreds Offering access to a unique global
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DIAMONDS LETŠENG
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www.mining-outlook.com • Issue 4
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of healthcare one patient at a time the community is raising the standard talk about how working together with Dr. Jeffrey Kuvin and Dr. Alan Hartman
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C E L E B R AT I N G A C E N T U RY O F H E R I TAG E Comprehensively supporting customers, Sulzer South Africa is dedicated to improving pumping processes, operational reliability, and the high performance of industrial rotating machinery. We discuss all this and more with Managing Director, Henry Craukamp Writer: Ed Budds | Project Manager: Poppi Burke
90 | Africa Outlook Issue 105
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here is often a tendency to label Africa as one market or industry, but it’s important to remember that the continent is made up of 54 distinct nations, each with their own unique opportunities and challenges. Several noteworthy trends are shaping the current landscape, as despite the enduring challenges posed by the COVID-19 pandemic, many African companies are steadfastly maintaining their focus on pivotal trends, including digitalisation and sustainability. It is no secret that Africa is simultaneously experiencing an
increase in urbanisation, leading to an upturn in the need for water and electricity. The global requirement for natural resources also continues to boost investments in the mining industry, as the demand for raw materials is still a powerful factor in continued investments in the vast African mining sector. Meanwhile, across a plethora of African industries, the intense competition for talent acquisition remains an ongoing and pressing concern for businesses. Expertly navigating these numerous challenges is Sulzer South Africa (Sulzer), established in
1922, who has intricately built a rich company legacy rooted in the region’s industrial growth. “Our evolution from diesel engines and boilers to comprehensive electrical services marked the early stages of our diverse portfolio,” introduces Henry Craukamp, Managing Director of Sulzer. “Over the years, we have expanded our offerings to include solutions beyond pumps, catering to industries such as water treatment, chemical solutions, transportation, food processing, and power generation,” he expands.
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At Sulzer, we are more than just a product supplier; we aspire to be true partners in delivering substantial value to our customers.”
A HISTORY OF EXCELLENCE
AFRICA OUTLOOK: HOW DID YOUR CAREER JOURNEY BRING YOU TO YOUR CURRENT ROLE? Henry Craukamp, Managing Director: “My career journey began as a technician in the South African heavy industries. As a young engineer, I quickly realised that service excellence and maintaining close contact with customers were fundamental. “In order to provide service excellence in these industries, it is important to have a profound understanding of how electrical and mechanical equipment works and impacts various processes. As a result of this realisation, I developed a passion for understanding the intricate details of electrical and mechanical systems. “My professional journey was founded on this realisation, emphasising the critical intersection of technical expertise and a strong commitment to customer satisfaction.”
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Craukamp is a seasoned business leader with a wealth of experience in various aspects of the industrial and engineering sectors. As of 2022, he serves as the Managing Director and Compliance and Information Officer at Sulzer, where he oversees the entire business, assuming responsibility for sales and operations within the region. With approximately 300 employees, the company’s operational region currently serves customers in 10 countries from within South Africa, based out of two major service locations, Johannesburg and Welkom. Sulzer’s overarching mission as a full-service provider is to adapt continuously to meet the country’s evolving needs. Throughout Sulzer’s history in South Africa, it has accumulated extensive experience in navigating the complexities of investing, divesting, and reinvesting in a variety of countries and industries. “Our experience has enabled us to adapt and evolve as the landscape changes, and we find that difficulties like these are truly inspiring,” Craukamp tells us. “By transforming challenges into opportunities, we can provide solutions that directly meet the specific needs of our customers.
The roots of Sulzer’s history lie in the development of a range of pumps used in diverse applications where fluids are treated, pumped, or mixed. “We can stand out from the competition in this market because of our facilities, manufacturing and engineering capabilities, and the level of service we provide our customers,” Craukamp acclaims. A great example of Sulzer’s engineering capabilities is its ability to design equipment for a variety of industries and applications. “We have crafted a team of seven engineers, with backgrounds in turbine and hydrodynamic design, who are not only involved in local projects but also in global R&D efforts,” he elaborates. Because of this, Sulzer is more competitive than other pump manufacturers with centralised engineering activities. Moreover, the company has developed reverse engineering capabilities, so it can provide solutions for mechanical rotating equipment, high-speed gearboxes, hydrodynamic couplings, and electromechanical systems. In addition, customers can also benefit from Sulzer’s global network of expertise and know-how. With specialised requirements and a limited number of experienced service engineers in the industry, Sulzer values experience and knowledge. Throughout the organisation, the company invests a lot of time and effort in training and developing its employees. “With one engineer working with us for over 25 years, we have a seasoned, experienced engineering team and value their contributions highly.” With respect to Sulzer’s specialised capabilities, it boasts two service
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centres in Elandsfontein and Welkom that provide pump, rotating equipment, and electromechanical services. Additionally, the company offers in-house full-performance testing for pump systems, allowing the customer to feel confident when installing the equipment and reduce commissioning time.
EXCEPTIONAL SOLUTIONS AND SERVICE Sulzer has played a pivotal role over the last century by delivering exceptional solutions through its comprehensive engineering expertise, industry-specific product range, and customer-centric services. “While we are often recognised as the preferred pump company, our offerings go far beyond pumps and pump-related services. Our journey in South Africa traces back to the early 1900s when we were involved with diesel engines and boilers, preceding our formal establishment in 1922,” Craukamp shares. The company then seamlessly diversified into electrical services 94 | Africa Outlook Issue 105
“ O U R E VO LU T I O N F R O M D I E S E L E N G I N E S A N D B O I L E R S TO CO M P R E H E N S I V E E L E C T R I C A L S E R V I C E S M A R K E D T H E E A R LY S TA G E S O F O U R D I V E R S E P O R T F O L I O ” – H E N RY C R AU K A M P, M A N AG I N G D I R E C TO R , S U L Z E R S O U T H A F R I C A
Engineering machine workshop Specialising in the refurbishing of old and new pumps of any variety including HPH, HPL, BKN, PJ250, and MSJs pumps Fedpump, founded in 1991 by Ermindo da Cunha, is a engineering machine workshop dedicated to the refurbishing of a variety of pumps including HPH, HPL, BKN, PJ250 and MSJs. With a strong focus on quality, precision, and customer satisfaction, we have established ourselves as a trusted provider of pump refurbishment services in the industry. Our experienced team of engineers and technicians possess extensive knowledge and expertise in handling a wide range of pumps, ensuring optimal performance and longevity.
Our Expertise: At Fedpump we specialise in the refurbishment of a variety of pumps including HPH, HPL, BKN, PJ250 and MSJs, covering both old and new models. Our team of skilled engineers and technicians possess in-depth knowledge of various pump types, designs, and manufacturers. We have successfully refurbished pumps from renowned brands and can work with different materials, such as cast iron, stainless steel, and exotic alloys. Our expertise extends to: 1. Pump Inspection and Assessment: We conduct a thorough inspection of pumps to identify the root cause of any performance issues or failures. Our team utilises advanced diagnostic techniques and equipment to assess the condition of various components, including casings, impellers, bearings, seals, and shafts. 2. Repair and Replacement: Based on the inspection findings, we develop a comprehensive repair plan. Our technicians are proficient in repairing or replacing damaged or worn-out components, ensuring that the pumps meet or exceed original specifications. We source high-quality parts from trusted suppliers to ensure durability and performance.
Quality and Customer Satisfaction: At Fedpump, we are committed to delivering high-quality services and exceeding customer expectations. We prioritise the following: - Quality assurance: Our workshop adheres to rigorous quality assurance processes and follows industry best practices. We maintain strict quality control standards throughout the refurbishment process to ensure consistent and reliable results. - Timely delivery: We understand the importance of minimising downtime for our customers. Our team is dedicated to completing projects within agreed timelines, ensuring prompt delivery of refurbished pumps. - Customer collaboration: We value open communication and collaboration with our clients. We work closely with them to understand their specific requirements, provide regular updates on project progress, and address any concerns promptly.
Fedpump is a trusted engineering machine workshop specialising in the refurbishment of a variety of pumps including HPH, HPL, BKN, PJ250 and MSJs. With our expertise, we have dedication to quality. Contact us: Tel: (011) 894-3658 | Cell: 0605324233 Email: sonia.dacunha@yahoo.com
SULZER SOUTH AFRICA MANUFACTURING
“ BY T R A N S FO R M I N G C H A L L E N G E S I N TO O P P O RT U N I T I E S , W E C A N P R OV I D E S O L U T I O N S T H AT D I R E C T LY M E E T T H E S P E C I F I C N E E DS O F O U R C U STO M E R S ” – H E N R Y C R AU K A M P, M A N AG I N G D I R E C TO R , S U L Z E R S O U T H A F R I C A
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in 1925, before opening a pump reconditioning service centre in Jeppestown in 1936 to cater to the thriving gold industry of the 1940s. “To further support South Africa’s growth, we inaugurated a pump factory in 1951. During this period, we played a vital role in advancing the power, mining, and water sectors,” he adds. However, as the late 1960s approached, Sulzer anticipated a decline in demand for mine dewatering pumps, prompting a shift towards the power generation market and the increasing public need for water supply. In 1976, the company established a purpose-built pump manufacturing facility in Elandsfontein, which not only produced world-class pumps but also provided a comprehensive range of spare parts. This marked the inception of Sulzer’s journey as a combined supplier of new pumping assets and a service provider for rotating equipment. Furthermore, in 1979, a dedicated workshop for rotating equipment
SULZER SOUTH AFRICA MANUFACTURING
was introduced, aligning with the aging equipment in South Africa, proving to be a prudent move for both the company and its customers. Collaborations with original equipment manufacturers (OEMs) to manufacture approved spare parts further solidified Sulzer’s offering.
“While the 1980s witnessed the era of big hair and power dressing across the world, Sulzer was busy evolving into a leading independent service provider (ISP) in South Africa.” This impressive transformation was facilitated by the establishment of a new engineering department in 1984,
and by the end of the decade, Sulzer had become a fully-fledged ISP for rotating equipment for nearly any brand. Staying true to its heritage of adapting to customer needs, in 2023, Sulzer opened a state-of-the-art electromechanical services facility in Elandsfontein. This facility aligns with the company’s commitment to not only enhance its customers’ pump performance, but also optimise the entire associated drivetrain. The facility further bolsters Sulzer’s capabilities in refurbishing motors, gearboxes, and generators, offering customers in South Africa a comprehensive one-stop shop for their rotating equipment needs. Additionally, when necessary, customers can access Sulzer’s global network of over 100 service centres for comprehensive maintenance and repair works.
CSR PROJECTS Sulzer not only cares for its customers, but also for the communities where it operates. 98 | Africa Outlook Issue 105
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John Crane is a global leader in mission-critical technologies for the energy and process industries and an innovator in rotating equipment, encompassing mechanical seals, couplings, filtration systems and cutting-edge asset management and digital diagnostics solutions. Blending a rich legacy of innovation with a commitment to service excellence, we’ve enabled our customer’s reliable and sustainable operations for over a century. While recognizing the role of • Packing traditional energy, we are pioneering solutions that enable cleaner alternatives, crafting a vision for a sustainable energy future. Our extensive global presence underscores our promise to • Mechanical seals customers, with over 200 service centers in 50 countries. With more than £1 billion in • Split seals revenue in fiscal year 2023, we are an integral pillar of Smiths Group plc, an FTSE 100 listed company dedicated to improving our•world smarter engineering. Sealthrough face technologies
GLOBAL PRODUCTS GLOBAL PRODUCTS GLOBAL PRODUCTS GLOBAL PRODUCTS • Packing • Packing
• Packing • Mechanical • Mechanical sealsseals • Mechanical seals • Split • Split sealsseals • Split seals •South Seal face technologies John• Crane in Africa, established in 1967, has service centers throughout Seal face technologies • Upstream Pumping South Africa that provide a full range of products, services, and solutions, with • Seal face technologies maintenance and repair capabilities throughout all our facilities in Springs, • Upstream Pumping • John Crane Diamond® • Upstream Pumping Durban, Cape Town, Sasolburg, and Secunda. Our application-specific • tailored Upstream Pumping • Couplings approach and service offering provide the right solution for every • John Crane Diamond® • John Crane Diamond® situation. • Filtration ••John Crane Diamond® The South African business is a Broad-Based Black Economic Empowerment Couplings • Couplings (B-BBEE) Level 3 contributor following a successful partnership with Bunengi Couplings LOCAL Group, a• 100% women-owned investment andSERVICES services group, who • Black Filtration GLOBAL PRODUCTS Filtration share•our aspirations to enable underprivileged women to enter Science, • Maintenance and repair services • Filtration • Packing Technology, Engineering and Mathematics (STEM) careers.
POWERING SUSTAINABILITY, MAXIMIZING RELIABILITY
LOCAL SERVICES LOCAL SERVICES LOCAL SERVICES • Maintenance and repair services • Maintenance and repair services
• Mechanical seal reliability programs Further supportingseals John Crane’s commitment to invest in South Africa, our • Mechanical global gland packing production has now been consolidated in South Africa, with • Gas seal management programs • Split seals our Springs facility upgraded to a center of excellence, producing products to •various Assetkey management solutions support our local and global demand in the industries including mining. • Seal face technologies
POWERING SUSTAINABILITY, • Maintenance and repair services • Mechanical reliability programs • Five service centers in South Africa POWERING SUSTAINABILITY, • Mechanical seal seal reliability programs • Upstream Pumping • Mechanical seal reliability programs • Consignment stock agreements MAXIMIZING RELIABILITY • Gas seal management programs • John Crane Diamond® • Gas seal management programs MAXIMIZING RELIABILITY • Service exchange • Gas sealmanagement managementsolutions programsagreements • Couplings • Asset Supporting the broader economy through inclusive and equitable business practices aligns with the core values that define how we work with our partners, customers, vendors and suppliers.
• Asset management solutions
• Filtration • Asset management solutions
INDUSTRIES SERVEDAfrica GLOBAL PRODUCTS • Five service centers in South • Five service centers in South Africa GLOBAL PRODUCTS • Oil and Gas / Petrochemical • Packing • Five service centers in South Africa LOCAL SERVICES • Packing• Consignment stock agreements
• Consignment stock•agreements Mining • • Mechanical Maintenanceseals and repair services • Consignment stock agreements • Mechanical seals • Service exchange agreements • Pulp and Paper • seals • Service exchange agreements • Split Mechanical seal reliability programs • Split • seals Service exchange agreements • Chemical • Seal face technologies • Gas seal management programs • Seal face technologies Upstream Pumpingsolutions• Power Generation • •Asset management • Upstream Pumping •Africa Pharmaceutical • John Crane Diamond® • Five service in South •and Oilcenters and Gas / Petrochemical • Oil Gas / Petrochemical • John Crane Diamond® • General industries • • Couplings Consignment stock agreements • Oil and Gas / Petrochemical • Mining • Couplings • Mining • Filtration • Service exchange agreements • Mining • Filtration • Pulp and Paper
INDUSTRIES SERVED INDUSTRIES SERVED INDUSTRIES SERVED
Explore and discover the John Crane product or service that fits your needs
• Pulp and Paper B-BBEE Level 3 Contributor - South Africa LOCAL SERVICES INDUSTRIES SERVED •SERVICES Pulp and Paper • Chemical LOCAL • Maintenance and repair services • Chemical
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• Oil and Gas / Petrochemical • Maintenance and repair services • Chemical • seal reliability programs • Power Generation • Mechanical Mining Explore and discover • Power Generation Explore and discover the the • Mechanical seal reliability programs • Gas seal management programs • Power Generation Explore and discover • Pulp and Paper John Crane product orthe service • Pharmaceutical John Crane product or service • Gas seal management programs • Pharmaceutical • Asset management solutions • Chemical John Crane product or service that fits your needs Pharmaceutical that fits your needs • Asset•management solutions • General industries • General industries • Five service centers in South Africa • Power Generation that fits your needs Explore and discover the • Five service centers in South Africa • General industries • Consignment stock agreements John Crane product or service • Pharmaceutical • Consignment stock agreements Learn that fits your needs • Service exchange Learn MoreMore • General industriesagreements • Service B-BBEE exchangeLevel agreements 3 Contributor - South Africa Learn More
B-BBEE Level 3 Contributor - South Africa
INDUSTRIES SERVED B-BBEE Level 3 Contributor - South Africa INDUSTRIES • Oil and GasSERVED Petrochemical B-BBEE Level 3 /Contributor - South Africa • Oil and Gas / Petrochemical • Mining • Mining
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SULZER SOUTH AFRICA MANUFACTURING
“This is part of our identity, our vision, and deeply rooted in our employees’ DNA. Our sense of care binds us together even more,” Craukamp exudes. In 2021, the company introduced the Sulzer Scholarship for Women in Science and Engineering. This scholarship is targeted at female students pursuing degrees in engineering, technology, and science, with the ultimate goal of increasing female participation in the engineering industry. As part of Sulzer’s commitment to the communities in which it operates, the company is actively collaborating with universities in South Africa to establish and promote these scholarships, reflecting its presence and business needs in the region. Sulzer further demonstrates its commitment to education by providing financial support to 10 students from Volksrus Primary School on an annual basis. “Furthermore, in 2023, we embarked on a two-year restoration project for Primrose Primary School. This project not only aims to provide 100 | Africa Outlook Issue 105
SULZER SOUTH AFRICA MANUFACTURING
DRIVEN BY PURPOSE MISSION
CORE VALUES
Consistently deliver innovative solutions reinforced by responsive client service and a commitment to quality and excellence.
We invest in our people. At Pro-Industrial, we constantly enhance our professional knowledge and skills by staying abreast of the dynamic changes and technological advancements utilised by our clients and the industry.
We believe in partnering with our clients to help ensure their success. We are consistently driven to contribute to our clients’ ability to reach their VISION business goals. After all, we succeed when our Be recognised by our clients clients succeed. as their partner in the development, delivery, and We never compromise on our commitment management of engineering to quality. The core of what we do is ensuring engineering and design integrity. This defines products to samples and drawings as per customer’s who we are and our commitment to excellence. We are committed to diversity. The richness of requirements. our relationships and the success of our pursuits, individually or collectively, are influenced by the extent to which we respect, listen to, and appreciate one another irrespective of differences. In fact, diversity, in all of its forms, is the cornerstone of creativity and innovation.
(+27 11) 613 6971/72 | 082 921 9686 | proindgasket@mweb.co.za | stevenpillay@mweb.co.za
We pursue an unrelenting quest for excellence, continual improvement and cutting-edge modernisation of our machinery, technology and staff training. Guia Engineering’s core business is manufacturing a full range of precision machined components, on the latest CNC machines.
Our Services: •
Precision Component Manufacture
•
CNC Turning, Milling, Drilling
•
Precision Grinding
•
ISO 9001:2015 Accredited
•
1-100 000 Part Capacity
•
Prototyping
•
Light Fabrication
•
Replacement Parts
Guia Engineering serves all manufacturing plant sectors, particularly the mining, pharmaceutical, FMCG, electrical and packaging industries.
40 years and going strong Africa Outlook Issue 105 | 101
SULZER SOUTH AFRICA MANUFACTURING
students with a school to take pride in, but also to create a safe and conducive learning environment, especially for students from the local informal settlement,” he adds.
STRATEGISING FOR A BRIGHT FUTURE Sulzer aims to be a responsible corporate citizen and endeavours to harness the power of fluid engineering to make life better, safer, and more sustainable. “Our sustainability strategy is composed of three pillars – minimising our carbon footprint, enabling a
Sulzer Johannesburg service centre
102 | Africa Outlook Issue 105
low-carbon society, and engaging our employees and communities to build a more inclusive and sustainable future,” Craukamp offers. The three pillars are supported by Sulzer’s commitment to the principles of good corporate governance, which ensure a sound balance of power and support the company in creating sustainable value for its various stakeholders. Sulzer actively engages with its customers to address pump-related challenges, such as failures and evolving specification issues. Sulzer is also heavily investing in R&D for
leading engineering solutions to address these issues. “For example, we are working on utilising additive manufacturing for pump repairs and retrofits. This approach underscores our commitment to environmentallyresponsible practices, reducing the need for equipment disposal or extensive remanufacturing, thus aligning with our dedication to minimising our carbon footprint and advancing a low-carbon society.” Looking ahead, Sulzer’s key priorities include further enhancing its engineering capabilities, expanding its local footprint, and investing in advanced technologies. “We aim to position Sulzer as a leader in innovative solutions, ensuring our services align with evolving industry needs. Our focus on customer satisfaction, sustainability, and continuous improvement drives our strategic vision,” Craukamp sets out. “While specific targets are confidential, our overarching goal is to achieve sustainable growth, offer unparalleled customer experiences, and contribute meaningfully to the communities and industries we serve,” he excites. To summarise, Sulzer continues to expertly provide a comprehensive range of solutions to its customers. It is the company’s robust engineering capabilities and facilities in close proximity to its customers that set it apart from various competitors. Investing in continuous learning and development for its employees allows Sulzer to guarantee its services meet the highest standards, and will ensure that the company remains a leading fullservice provider in the market.
SULZER SOUTH AFRICA www.sulzer.com
SULZER SOUTH AFRICA MANUFACTURING
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Africa Outlook Issue 105 | 103
104 | Africa Outlook Issue 105
UNICA IRON AND STEEL MANUFACTURING
SETTING A SOLID S TA N DA R D E
As proud pioneers of secondary metals manufacturing, UNICA Iron and Steel is successfully forging a path in South Africa. Managing Director, Mohammed Asif Qasim, tells us more about the industry Writer: Rachel Carr Project Manager: Poppi Burke
stablished in 2007, UNICA Iron and Steel (UNICA) is the first in South Africa (SA) to feature a fully integrated mini-steel plant that produces light to medium structural steel. “We are growing with the pace of demand, and our market share increases daily. We are currently installing a new melting furnace to increase our capacity from 120,000 tonnes per annum (tpa) to 240,000 tpa,” opens Mohammed Asif Qasim, Managing Director of UNICA. Qasim began his career as an entrepreneur and retail shop owner. He developed an interest in the manufacturing industry as an industrialist in 1998 when UNICA Plastics, as it was then known, started in Pretoria. Subsequently, a steel fabrication shop was incepted in 2000, and following that, the company evolved into UNICA Iron and Steel, where Qasim became the Managing Director, co-Founder, and a shareholder. Alongside the melting furnace, Qasim proudly tells us of other projects in the pipeline for UNICA. For example, in an effort to optimise its production capacity, the company added argon oxygen decarburisation (AOD) and oxygen plants to its production processes.
UNICA IRON AND STEEL MANUFACTURING
“We are installing two oxygen plants and one AOD unit, which will allow us to improve our quality further and supply different market sectors,” Qasim tells us. AOD is a chemical process where oxygen is introduced in a vessel to create an exothermic reaction, hence, UNICA installed oxygen plants alongside it. As a result, the plant produces oxygen and nitrogen necessary for decarburising and refining the steel.
“We have invested over R450 million since the COVID-19 pandemic and are continuing to do so. Once all the expansions are completed, we may be at the level of R550 million,” Qasim notes.
PROCESSES AND PLANTS The company uses processed scrap as a raw material to produce steel using an induction furnace, in a process known as secondary steel making. The resultant billets are then processed
in the rolling mills to produce light to medium steel sections such as angle iron, round bars, and window sections. “Focusing on this niche, UNICA has managed to grow its share substantially and has become a benchmark operation for many who have followed its success,” Qasim reveals. “The company is the first 100 percent Bureau of Energy Efficiency (BEE) rated metal waste recycle plant in the small and medium-sized enterprises (SME) space.”
“FOCUSING ON THIS NICHE, UNICA H AS M A N AG E D TO G R OW I TS S H A R E S U B S TA N T I A L LY A N D H A S B E C O M E A B E N C H M A R K O P E R AT I O N F O R M A N Y W H O H AV E F O L L O W E D I T S S U C C E S S ” – M O H A M M E D AS I F Q AS I M , M A N AG I N G D I R E C TO R , UNICA IRON AND STEEL
106 | Africa Outlook Issue 105
Africa Outlook: Could you talk about UNICA’s supply chain operations and what the company procures locally? Mohammed Asif Qasim, Managing Director: “Since we are secondary steel producers, meaning we are metal recyclers, our major input is scrap, which we procure locally. “We have to procure certain consumables from India and China, as the plant is still new to SA, and there aren’t many producers of consumables in the country currently. However, manufacturing may start locally in the near future, but until then, we will rely on imports. Aside from that, 85 percent of our procurement is local.”
Indeed, UNICA has much to celebrate, and its success is partly down to the 900 people it employs from the rural Hammanskraal area in Gauteng Province. The workforce operates in rolling mills to produce over 100 different sections from billets created in an induction furnace and castes in a continuous caster. “When the plant was established, it was able to produce only 12,000 tpa, whereas in the space of 14 years, it has already reached the levels of 15,000 tpa and is expanding further, so we are hoping to reach up to 24,000 tpa by Q3 in 2024. “Next year, the process involving melting scrap to liquid metal and casting it to billets, which are then reheated and rolled from light to medium,” Qasim informs us. Before 2007, only six major steel-making plants existed in the country, which were
dominating the sector, particularly since there were only two major plants in the long products market. “That is where we saw a gap; therefore, we decided to adopt the Asian mini steel plant. Our success followed, with five or six more plants established after us,” continues Qasim.
A strategic hands-on approach gives
MPHO MOOFE TRADING ENTERPRISE the competitive advantage Mpho Moofe Trading Enterprise CC started operations in 2008. The Company was founded by its current Director, Stanley Sello Molele. Its main objective, to develop and provide good quality services in the following key areas: • Project Management • Operations • Construction • Technical Support • Engineering Services • Maintenance • Supply, distribution and other related services, reflecting its clients’ demands
Mpho Moofe Trading Enterprise CC’s products and services are always in demand because its engineering, project management skills and technical background is more diverse than that of its competitors. Mpho Moofe Trading Enterprise CC as a company, is 100% black owned and controlled, and is therefore well structured to supply excellent quality services to satisfy its broad range of clients and customers.
HEAD OFFICE (LIMPOPO): P.O Box 702, Rozano, 0723
GAUTENG OFFICE: 201 Maletswai Section, Ramotse, Hamm
Fax No: 012 345 6789 | Cell No: 079 967 0233
Fax No: 012 345 6789 | Cell No: 079 967 0233
Alternative No:078 686 0063
Alternative No:078 686 0063
E CC PLANT EQUIPMENT The company owns some construction plants list below: • 1x water tank 12000 litres • 1x TLB • 2x Bakkie • 1x Diesel bowser • 15x Welding machines • 15x Generators
OUR MISSION Empowerment of our employees and stakeholders is our mission. This will be achieved through continuous development within the communities and organisations we serve.
manskraal, 0400
stanleymolele@yahoo.com
UNICA IRON AND STEEL MANUFACTURING
STRENGTHENING COMMUNITIES “One of the reasons that UNICA is growing and successfully capturing the market is due to our dedicated, motivated, and welltrained workforce. Our experienced executive, senior, middle, and junior management in particular are key reasons for our prosperity,” Qasim sets out. As UNICA is a first-of-its-kind project in SA, most of its staff had no first-hand experience in the demands of secondary steel manufacturing. To address this, the company’s HR department provides on-the-job training.
“ T H E C O M PA N Y I S T H E F I R S T 1 0 0 PERCENT BUREAU OF ENERGY E F F I C I E N C Y R AT E D M E TA L WA S T E R E C YC L E P L A N T I N T H E S M A L L A N D M E D I U M - S I Z E D E N T E R P R I S E S S PAC E ” – M O H A M M E D AS I F Q AS I M , M A N AG I N G D I R E C TO R , UNICA IRON AND STEEL
“We also provide ample training and opportunities for career growth by encouraging our employees to work smart,” he adds. Over the years, the company has consistently improved staff conditions, and now it is the highestpaying employer in the country.
Furthermore, it distributes annual bonuses, long service awards, and production incentives. Employees of the month and year are just some of the initiatives that make UNICA the workplace of choice. As part of UNICA’s mission, vision, and values, it is also deeply committed to making a difference in the community through its corporate social responsibility (CSR) programmes. “We provide economic and equal opportunities to our immediate community by offering direct jobs to citizens in surrounding areas. We ensure that we also extend a helping hand to widows and orphans.” Other programmes include rehabilitating drug users and educating communities on drug abuse as well as the prevention of violence against women.
Allied Mineral Products South Africa (AMSA) would like to extend our deepest congratulations to Unica Iron and Steel for the ongoing partnership we have developed over the years. Best wishes for continued prosperity and growth. Allied Mineral Products is a global company and leading producer of monolithic refractory ceramics. We maintain a strong worldwide presence and have sales in more than 100 countries, supported by 7 precast shape facilities, and 12 manufacturing facilities in 8 countries.
Refractory Solutions for Africa New Precast Shapes Division alliedmineral.com | PH: +27-11-776-2400
UNICA IRON AND STEEL MANUFACTURING
“Sporting activities are also one of our key principles. As such, we sponsor local sports events and kits for teams,” acknowledges Qasim. As corporate citizens, UNICA believes its impact on the local communities and surrounding environment must be positive. To that end, the company encourages a culture of care, supporting multiple projects to uplift the disadvantaged and assist those less fortunate.
UNICA Environmental Objectives The company has set goals to become a sustainable operation and green steel manufacturer by 2025 by: • Migrating to clean energy, including solar and compressed natural gas (CNG). • Recycling at least 2,500 kilogrammes (kg) of general waste (paper, plastic, etc.) and at least 5,000 litres of used oil per annum. • Training 80 percent of employees on different topics under environmental management. • Ensuring that it does not exceed the allowed amount for dust monitoring more than twice a year. • Reducing water usage by five percent compared to the previous year. • Installing a waste processing plant to make waste useable for the construction industry. • Generating power.
112 | Africa Outlook Issue 105
UNICA UPGRADES As the plant is the first of its kind in SA, it is unique in its totality. “We have adapted many different methods in billet-making and rolling processes to innovate our profile. We produce and offer better commercial benefits to our market; for example, we are the first in the country to master and successfully produce light angles of 2 millimetres (mm) gauges. “Similarly, we have produced a special window section, which is light in weight but still does not lose strength due to its innovative design,” Qasim enthuses. The steel industry is one sector that the government has focused on, especially since the COVID-19 pandemic. More aggressive steps have been taken by the current administration,
having who has developed a master plan for the industry, encouraging even greater growth for UNICA. Moreover, the localisation drive and protection of regional products has played an important role in UNICA’s growth after the devastation caused by the COVID-19 pandemic. “During 2020, we completed a new rolling mill, which has allowed us to
expand our billet-making capabilities. Subsequently, the second expansion since the COVID-19 pandemic is underway. This growth is a direct result of our continuous hard work, R&D, and customer-orientated attitude, by providing clients with flexibility and easy access to our ordering and delivery systems,” he details.
All expansions are carried out with calculations and market surveys, demonstrating how UNICA sets realistic targets and achieves them to the maximum extent. “Our current goal is to cross the 24,000-tonne figure by the end of 2024. We are well on course, and I believe we will get there,” Qasim closes.
UNICA IRON AND STEEL Tel: 012 719 9736 info@unica.co.za ironandsteel.unica.co.za Africa Outlook Issue 105 | 113
AN A DV E N T U R O U S PURSUIT
Born out of a passion for overlanding and exploring the great outdoors, Alu-Cab has transformed from a Cape Town start-up to a global supplier of adventure vehicle accessories, as CEO, Warwick Leslie tells us Writer: Tom Wadlow | Project Manager: Poppi Burke
114 | Africa Outlook Issue 105
ALU-CAB MANUFACTURING
To be successful, you have to have your heart in your business, and your business in your heart.” Coined by Thomas Watson, the entrepreneur whose 40 years at IBM propelled it into the largest manufacturer of data-processing equipment in the world, this statement captures perfectly the story of Alu-Cab. Like Watson and IBM, this is a story of passion. In this case, Founder and COB Jeremy Bergh’s heart was in overlanding – a hobby centred around a combination of remote travel, offroading, and camping that is fuelled by a spirit of adventure and a desire to seek off-piste, unspoiled destinations. Africa Outlook Issue 105 | 115
The same can be said of Managing Director, Warwick Leslie, whose love of mechanical engineering (and fishing) brought him into the Alu-Cab fold. “I’ve been interested in anything mechanical my whole life,” he says. “When I finished school, I studied mechanical engineering and during that time got involved in circuit racing, building and modifying road cars for the track. At the same time, I also got very involved in fishing and that’s when I decided that I needed a more practical vehicle to get to the areas I wanted to get to. “The natural choice was a fourwheel drive and, being a tinkerer and someone that can’t leave things alone, that vehicle didn’t remain standard spec for very long. It was in this modifying journey that I met Jeremy. This was in the very early days of AluCab and together, we did quite a lot of work on the vehicle.” 116 | Africa Outlook Issue 105
Back then, Warwick was working in the food processing industry, an endeavour which, by his own admission, was not motivated by a
ALU-CAB AT A GLANCE Alu-Cab has grown from a Cape Town start-up to a fullyfledged manufacturer and global distributor of vehicle accessories for overlanding adventurers. •
Founded in 2000
•
Pioneer of the first-ever aluminium adventure canopy
•
620 employees
•
450 sellable products
•
Products sold in 70+ countries
passion for pursuing a career in the sector. “Jeremy offered me an opportunity to work at Alu-Cab,” he continues. “It was, at the time, a very scary one. It was a huge pay cut to get involved but I decided that I was young enough to take a risk. That was 19 years ago, and here we are today.”
STANDING OUT It is fair to say that a lot has happened since Warwick joined the Alu-Cab journey back in the early 2000s. The company was founded off the back of Bergh’s own travel experiences. Space and weight posed constant challenges, challenges which inspired the creation of the first ever aluminium canopy specifically engineered for adventure travellers. The product, which provides a practical way of utilising space and accommodating weight in overlanding vehicles, has been
ALU-CAB MANUFACTURING
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Africa Outlook Issue 105 | 117
subject to constant refinement ever since. As this process continued, with accessories for the canopy being innovated alongside improvements to the core product, the more Bergh and Warwick realised its boundless potential. Today, the company stands proud as a home-grown South African enterprise that operates its own fully developed manufacturing facility in Cape Town, where the journey started, and employs well over 600 people. It produces a vast portfolio of vehicle accessories designed to make the overlanding experience as seamless and comfortable as possible, ranging from a fridge slide-through to a full-blown sliding camper with central heating, and many more nifty items in between. Alu-Cab sells globally, with significant customer bases in Europe, North America, and Australia, where overlanding is often cited as being born. So, passion and heart aside, what has enabled the company to command a status as a market leader? 118 | Africa Outlook Issue 105
“J E R E M Y O F F E R E D M E A N O P P O R T U N I T Y T O W O R K AT A L U - C A B … I T WA S , AT T H E T I M E , A V E R Y S C A R Y O N E . I T WA S A H U G E P AY C U T T O G E T I N V O LV E D B U T I D E C I D E D T H AT I WA S Y O U N G E N O U G H T O TA K E A R I S K . T H AT WA S 1 9 Y E A R S A G O , A N D H E R E W E A R E T O D AY ” – WA R W I C K L E S L I E , C E O , A L U - C A B
ALU-CAB MANUFACTURING
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Africa Outlook Issue 105 | 119
ALU-CAB MANUFACTURING
“I think we’ve got two main differentiators that make us stand out from the competition,” Warwick explains. “The first and foremost is our innovation and R&D. We always try to come up with new and different solutions to problems that people experience in vehicular travel or otherwise. “The other main differentiator is the scope of products that we offer. We don’t concentrate on only one sector of the industry. We have a very broad spectrum of products which allows us to be as close to a turnkey accessory supplier as possible.”
RESPONSIBLE GROWTH Warwick and Alu-Cab, in reaching this point, have also ensured that the journey to becoming and now
120 | Africa Outlook Issue 105
sustaining a successful company is grounded in principle and responsibility. “We’re all about being conscious and sustainable,” he states. “We truly care about our impact on the
environment and we’re dedicated to making a positive, lasting change for future generations. We run a large CSI program that focuses on African conservation, both locally and beyond.” Indeed, the firm is involved in a variety of initiatives, working closely with a range of organisations to support anti-poaching and endangered wildlife conservation, as well as community upliftment. These include collaborations with the Ford Foundation, the Endangered Wildlife Trust’s Vultures for Africa Program, and the Freshwater Research Centre on its Saving Sandfish Project. Alu-Cab also keenly supports with the Thornybush K9 Unit, where it sponsors dogs to protect the environment against poaching.
ALU-CAB MANUFACTURING
TURNING A PASSION INTO A BUSINESS AFRICA OUTLOOK: HOW IS THE SPIRIT OF ADVENTURE CAPTURED ACROSS THE COMPANY AND ITS PRODUCT RANGE? WARWICK LESLIE, CEO: “Alu-Cab is owner-run, which I think is an important part of conveying our passion or excitement for travel. No-one wants to be working harder than they need to for their daily tasks. You’re out there to enjoy yourself and not be struggling with putting tents up or moving from camp to camp or whatever it might be. “We are continually learning, making adjustments and improving our products based on our own experiences in our own travels, because we get a huge kick out of being able to simplify the experience for our customers and for ourselves.”
In terms of its own business operations, the company leads by example, playing its part in the circular economy with its in-house recycling initiative that runs across the entire footprint of factories. Operating a response company also entails the empowerment of people and communities. Here, Alu-Cab is active on many fronts. “We invest in the growth and development of our staff through an active training program,” Warwick explains. “Many of our team members come from diverse backgrounds and are without formal qualifications – at Alu-Cab, we believe in providing opportunities for everyone to succeed. Africa Outlook Issue 105 | 121
COMPANY NAME SECTOR
“We’re also committed to uplifting our community and putting in the time and effort required to ensure that our employees are equipped with the necessary skills to excel. Our HR department prioritises internal hiring for promotion and development, but when necessary, we also seek talent externally. We’re passionate about individual development and strive to uplift not only our staff but also 122 | Africa Outlook Issue 105
the community around us.” Supporting local enterprises through the supply chain is another important component that contributes to social value creation. Alu-Cab’s procurement strategy revolves around utilising local suppliers wherever it is feasible, although a small portion of its stock does require sourcing from afar. However, the firm relies heavily on the reliability and quality of its local
ecosystem of suppliers and service providers, and invests significant energy and resources into nurturing mutually beneficial partnerships. “We pride ourselves on taking care of our suppliers and this ensures that we can deliver the best possible product at the most competitive price, all while supporting the growth and success of our local community,” Warwick adds.
ALU-CAB MANUFACTURING
“ W E P R I D E O U R S E LV E S O N TA K I N G C A R E O F O U R S U P P L I E R S A N D T H I S E N S U R E S T H AT W E CAN DELIVER THE BEST POSSIBLE PRODUCT AT T H E M O S T C O M P E T I T I V E P R I C E , A L L W H I L E SUPPORTING THE GROWTH AND SUCCESS OF OUR LOCAL COMMUNITY” – WA R W I C K L E S L I E , C E O , A L U - C A B
TIME FOR CONSOLIDATION Looking ahead, Warwick remains grounded. Rather than continuing to pursue aggressive expansion which could be unsustainable in the longer term, the priority now is to consolidate and streamline the organisation. “Due to our rapid growth over the last five years, we have ended up being quite fragmented in our manufacturing spaces because we’ve been forced to take whatever properties came up in
the area,” he explains. In response, Alu-Cab is in the process of consolidating five of its 15 factories. In the second half of 2024, the company will consolidate the remaining factories into a single building, bringing the total manufacturing real estate footprint down to just two sites. This, Warwick states, is key to unlocking efficiencies and working more coherently. Developing the innovation pipeline
and maintaining strong market positions across its territories are also key priorities. Succeed here also, and fast-forward a year to 18 months, AluCab will be poised to take the next big step on its overlanding journey.
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W I T H YO U F O R THE L NG RUN Michael Bentley, Managing Director of Action Auto Zambia Ltd, speaks to us about the company’s recovery after the COVID-19 pandemic and how it is continuing to put customers’ vehicle requirements and satisfaction at the forefront Writer: Lauren Kania | Project Manager: Josh Hyland
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ACTION AUTO ZAMBIA LTD RETAIL
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aving been established in 1997 in Lusaka, Zambia, Action Auto Zambia Ltd (Action Auto) is the appointed and authorised franchise dealer that sells, services, and maintains Isuzu passenger, commercial, and light commercial vehicles. Additionally, it is an authorised warranty centre that sells original Isuzu parts for a variety of customers. With three locations across the country, the company has continued to offer mobile services to cater to
customers with vehicles in more rural areas of Zambia, despite the many challenges that have presented themselves over the course of the past five years. Passion and excitement run deep within the structure of Action Auto, shaping the core of the company and contributing to the continuous innovation and developments that it is proud to boast. “The automotive industry continues to be an exciting and challenging place to be working in – with the
past five years offering different unprecedented encounters, and most of all, being challenged by dynamic, ever-evolving customer requirements in a changing world,” opens Michael Bentley, Managing Director of Action Auto. Specifically, the recent COVID-19 pandemic, which gripped the world in 2020, significantly impacted vehicle sales. Action Auto had to employ measures to safeguard its staff and customers during a time when faceto-face interactions were restricted.
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ACTION AUTO ZAMBIA LTD RETAIL
ACTION AUTO WINS BEST SPECIALIST JAPANESE VEHICLE DEALERSHIP SOUTHERN AFRICA FOR 2023 BY THE BUSINESS CONCEPT A prestigious programme that recognises and celebrates the achievements of the best and brightest in the global automotive industry, from manufacturers and suppliers to dealers and service providers, this is the second year running that Action Auto has been awarded this international honour. With results stemming from rewarding parties based on their excellence in the industry, the quality of their products, and their
“It was a tough year for us, and had it not been for our core customers who continued to support and purchase vehicles, we would not have been able to maintain our staff at a time when many other businesses had no choice but to permanently close,” expands Bentley. The following two years did not prove to be any easier, with lockdown policies continuing to impact supply chains and the shortage of global microchips and vehicle components causing further disruption, resulting in unprecedented waiting periods of up to one year for a car. “We have, however, come through the other side stronger as a team, and we’re excited to see what the future holds in a country as vibrant as Zambia,” enthuses Bentley.
dedication to service, Action Auto has showcased its successful move from nominee to winner through evidence of extensive expertise and skills, dedication to customer service, and client satisfaction with an ongoing commitment to excellence and innovation. “This win means a lot to us, as our team’s efforts and dedication to enhancing customer satisfaction and building strong customer relationships have been recognised. We are extremely proud of our team,” says Bentley.
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UNRIVALLED RELIABILITY While there have been many integral recognitions over the past few years due to the chaos caused by the COVID-19 pandemic, one of the most vital examples is the crucial relationship between companies, their partners, and suppliers. Action Auto readily recognises the importance of these relationships to the success of its business. “During 25+ years in operation, we have learned that by aligning key stakeholders and partners, supply chain collaboration helps us with the improvement of customer delivery, which drives business growth,” explains Bentley. With partners including banks, vehicle accessories, lubricants, batteries, vehicle cleaning, security, office supplies, and internet connectivity, Action Auto has maintained over 90 percent of its key partnerships throughout much industry disruption. Specifically, the company’s partnership with Isuzu allows Action Auto as a franchised dealer to actively provide user feedback for the innovation and acceleration of new
product development with ease and confidence. Another critical aspect that the company prides itself on is the high level of customer service provided at every level. “We take pride in our service and strive daily to deliver it to the highest level. We see our customers as an extension of the Isuzu family, and each interaction must cultivate that feeling through continued enhancement of customer satisfaction and building strong relationships,” he says proudly. This environment is cultivated by the Action Auto team, who are encouraged to create a positive and friendly experience from the very beginning, through to the vehicle purchase and delivery process, and finally, to the life cycle maintenance of the vehicle. “Our company ethos continues to create lifelong customers that stand the test of time,” cements Bentley.
ACTION AUTO ZAMBIA LTD RETAIL
“ W E TA K E P R I D E I N O U R S E R V I C E A N D S T R I V E D A I LY T O D E L I V E R I T T O T H E HIGHEST LEVEL” – M I C H A E L B E N T L E Y, M A N A G I N G D I R E C T O R , A C T I O N A U T O Z A M B I A LT D
UNCOMPROMISINGLY BOLD Having recently been awarded the Best Specialist Japanese Vehicle Dealership Southern Africa for 2022 by The Business Concept, Action Auto has proven time and time again its
commitment to serving people across Zambia. In addition to this award, the company has received, for the second year in a row, the 2023 Best Specialist Japanese Vehicle Dealership Southern Africa by The Business Concept, further displaying its competitive prowess and tenacity.
Alongside Action Auto’s various awards and recognitions, the company has expanded even further, opening the Leopards Hill Branch, a quick service facility catering to the eastern part of Lusaka. ‘‘The city of Lusaka has grown exponentially in the past 10 years, and we took the opportunity to open in a newly built shopping centre in the area. This facility has been a further blessing as it has increased our reach as customers grew weary of the traffic congestion in the Central Business District (CBD),” explains Bentley. To progress customer service and satisfaction even further, the company revamped and renovated its headquarters (HQ) and Kitwe facilities over the course of the past five years, updating the showroom and workshop for better flow and efficiency.
Next-level mobility is here Q: Firstly, could you provide us with an overview of Avis Fleet and your clients, services, vehicles, etc.? Avis Fleet (A): Avis is the largest fleet management company in Southern Africa with over 1,000 customers, managing more than 300,000 vehicles, and with operations in seven African countries. In Zambia, we have 40 customers and a fleet of 365 vehicles. We pride ourselves on building long-term partnerships with our customers, with a focus on helping them achieve maximum business mileage from their fleet through solutions which are shaped around their business vision and objectives, and easily adapted as their needs change. Q: How have you earned your reputation as a market leader and product innovator? What technologies do you employ to set the
company apart from its competitors? A: At Avis, we seek to provide our customers with uniquely modular and flexible fleet solutions that are shaped around their unique business requirements. Our extensive workforce is solely focused on removing inconveniences and reducing the ever-increasing costs associated with managing a fleet. This is coupled with embracing and developing technologies that provide solutions to the diverse needs of our customers. Q: Could you tell us more about your longterm leasing? A: Under our Avis Fleet Full Maintenance Lease, we source, register, and deliver vehicles to customers according to their specification and requirement. Over the lease term, Avis takes care off all costs related to the ownership of the vehicle, i.e., service, maintenance, and change
Q: What are the benefits of long-term leasing? A: • Leasing enables you to invest the capital you would have spent on the procurement of vehicles into your business, thereby allowing you to make a return on the capital multiple times during the lease term. • It eliminates exposure to unpredictable repair and maintenance costs by fixing the leasing cost over the lease term. • It allows you to pay for only what you use by spending less on staff that cover a lower mileage per month, as opposed applying a one-sizefits-all depreciation policy.
Q: How does leasing compare to Vehicle Asset Finance (VAF) offered by financial institutions? A: • No arrangement fees are required. • No insurance is charged on the allocated finance facility. • Our cost of capital charge is far less than the interest charged by financial institutions. • Once you have procured your vehicle using VAF, you still have to worry about insurance - road taxes, service, maintenance and tyre changes, etc.
• Total administration of the fleet remains with Avis, thus allowing your management and staff to prioritise their mainstream business.
of tyres at prescribed intervals, including annual road taxes. Avis also insures the vehicle and manages claims and accident repairs over the lease period. In addition, the vehicle comes with advanced tracking technology that allows a business to take full advantage of its fleet. Our leases run from a period of 12 to 60 months. Q: Can you speak about Avis’ relationship with its national partners? What does it mean to the company? A: We are currently not dealing with any government departments, but are open to trade with them should they show interest in leasing. Q: What aspects of the fleet does the company handle? A: Everything related to the vehicle is managed by Avis; all the customer needs to do is fill up the tank. In case of a breakdown, you just call Avis. Q: Does Avis offer a lease-to-own option?
A: All our customers are given the first right of refusal when the vehicle comes to term. If they wish to buy the vehicle, they buy it, otherwise, Avis will take it in and bear the challenges associated with our used car market which is flooded with grey imports from all over the world.
Contact us: +260 21 137 2585 Marina.Zyambo@zeda.co.za avis.co.za
ACTION AUTO ZAMBIA LTD RETAIL
“ H AV I N G O P E R AT E D F O R M O R E T H A N 2 5 Y E A R S , W E A R E P R O U D O F O U R ST R O N G T R AC K R E CO R D O F P R OV I D I N G S U P E R I O R Q UA L I T Y V E H I C L E S , A N D A R E F I R M LY C O M M I T T E D T O M E E T I N G , M A I N TA I N I N G , A N D E X C E E D I N G H I G H C U S T O M E R E X P E C TAT I O N S ” – M I C H A E L B E N T L E Y, M A N A G I N G D I R E C T O R , A C T I O N A U T O Z A M B I A LT D
Looking towards the future, Action Auto purchased a five-hectare plot of land in 2023, close to Kenneth Kaunda International Airport, and a truck workshop across the road from its HQ in Lusaka.“We intend to develop this land over the next 10 years in order to move the entire HQ facilities to the site, maintain a bonded storage warehouse for vehicles, and a larger 130 | Africa Outlook Issue 105
parts storage and distribution facility for the country and perhaps even neighbouring countries,” comments Bentley. Finally, after a pause resulting from the effects of the COVID-19 pandemic, the company is in the process of renewing its partnership talks with some key organisations to open authorised service outlets around
the country, with an initial focus on northwestern and southern provinces.
A COLLECTIVE FUTURE As the challenges of the COVID-19 pandemic highlighted, community and teamwork are crucial to the success of not just any business, but any society that wants to find collective growth.
ACTION AUTO AT A GLANCE • Trusted brand – Action Auto exclusively supplies brandnew Isuzu vehicles from Isuzu Motors, a brand synonymous with excellent value, quality, and safety. • Modern workshop – Action Auto runs a state-of-the-art automotive workshop for repairs and upgrades staffed by expert Isuzu trained and certified technicians. • Comprehensive spares – Action Auto maintains comprehensive stocks of Isuzu genuine replacement and service parts, and accessories for all vehicles sold. • Solid warranty – Action Auto vehicles carry a rock solid 100,000 kilometre (km) per three-year warranty that the company is proud to stand behind. • Strong team – All of Action Auto’s achievements are based on the dedication and work of its team.
No better is this personified than through the corporate social responsibility (CSRP) practices that Action Auto partakes in. “We are firm believers of supporting our community. From financial, material, logistical, or physical support, volunteer work, or providing complementary auto maintenance to first responders, we have demonstrated our support,” states Bentley. The company likewise supports two charitable, non-profit
organisations that help and educate orphans – Human Service Trust, and Chawama Chesire Homes for the elderly and homeless - and recently partnered with Mission Geeks, a non-profit supporting the work of Christian missions and community development organisations in the fields of education, health, and conservation. Additionally, those at Action Auto are extremely passionate about the conservation of wildlife in Zambia and channel this passion into supporting and volunteering as Honorary Wildlife Police Officer (HWPO), units, a division of the Zambia Department of National Parks and Wildlife (DNPW). “Myself and a few of our staff members are part of HWPO, donating our time and offering logistical and financial support for anti-poaching and wildlife rescue patrols,” expands Bentley. With plans to grow alongside its community, Action Auto has detailed a two-to-five-year plan with the goal of implanting the company in areas of Zambia in which it has had very little
presence other than mobile service teams. This will be accomplished by utilising strategic partnerships with some of its suppliers who have already established a presence in these areas in order to better serve the company’s ever-growing customer base who are no longer just operating in the areas along the line of rail or major road networks. “We are growing our team, looking towards the youth who offer fresh and enthusiastic energy, innovative thinking, diversity of thought, and digital fluency, which is becoming important amidst the increased use of social media as a tool for increased customer reach,” concludes Bentley.
ACTION AUTO ZAMBIA LTD Tel: +260 211 221076 salesadmin@actionautozambia.com actionautozambia.com Africa Outlook Issue 105 | 131
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KOMATSU MINING
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Hermann Hollhumer, General Manager – Mining Operations South Africa at Komatsu, discusses creating value through technology and manufacturing innovation to empower a sustainable future where people, business, and planet thrive together Writer: Jack Salter | Project Manager: Joshua Mann
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ommodities such as lithium, nickel, cobalt, manganese, and copper are critical for power generation. Mining therefore has a heavy influence on everyday life, with Africa responsible for 30 percent of resources in the global supply. Despite this significant contribution, there remains high untapped potential for the likes of iron ore and bauxite in Guinea, gold in Ghana, cobalt and copper in the Democratic Republic of the Congo (DRC), and diamonds in Botswana. Many African countries have a fantastic mining output and are well positioned in markets around the world, bolstered by young and growing populations that are embracing the technology revolution. Since it was founded in 1921, Komatsu has been renowned for quality, reliable equipment, and harnessing technology to maximise performance delivery for customers. “We are a category leader in innovation and technology. Our Japanese heritage implies precision and respect towards nature,” opens Hermann Hollhumer, General Manager
of Mining Operations at Komatsu. The company’s roots stretch back more than 100 years to a lush forest near Komatsu City in Ishikawa Prefecture, Japan, which was once home to a copper mine vital to the surrounding community. Understanding that the world requires equipment to meet the needs of society and the environment today and in the future, Komatsu works to make this as sustainable as possible for generations to come through its manufacturing processes and technologies. This includes reducing the carbon footprint associated with sourcing and manufacturing through renewable power supplies, remanufacturing components, and strategic sourcing. Technologies such as Tier 4 engines and electric overhead trolley and battery drive systems also improve productivity and reduce greenhouse gas (GHG) emissions during operations. The company uses numerous digital solutions to further enhance its equipment offering, such as fleet optimisation and health and diagnostics software. Africa Outlook Issue 105 | 133
KOMATSU MINING
FULL SUITE OF EQUIPMENT Komatsu offers a full range of surface mining equipment, such as drills, shovels, and trucks, as well as underground hard rock and shaft sinking equipment. Underground equipment includes load-haul-dump (LHD) machines, dump trucks, jumbo drills, and roof bolters; the latter comprises shaft jumbos, muckers, raise bore strings, stabilisers, and more. “We offer a full suite of equipment, mining solutions, and services that allow a mine to partner with one brand to deliver the full requirements,” Hollhumer informs us. “We also have a full service and support offering dependent on customer requirements – this includes parts supply, remanufacturing of components, technical resources, and project and quality management.” Driven to continuously improve the performance of its equipment, Komatsu focuses on identifying, creating, and delivering value in collaboration with the customers that it services, namely Tier 1 mining houses as well as many other mines, contractors, and a vast construction industry base.
“Some of our customers include Anglo American, Exxaro, Kumba, Assmang, Barrick, FMQ, Foskor, Thungela, Seriti, and Glencore,” he adds. Komatsu services these customers from its 16 branches and 21 depots across the Southern Africa region, with operations in South Africa, Namibia, Botswana, and Mozambique, and dealers in Zimbabwe, Madagascar, Mauritius, Malawi, and Zambia. This is complemented by a parts distribution centre based at 134 | Africa Outlook Issue 105
SUPPORTING THE LOCAL COMMUNITY Komatsu was founded in 1921 on the principle of supporting the
Komatsu’s head office in Germiston, Johannesburg, a secondary distribution centre in Kathu that services the Northern Cape region, a component remanufacturing facility in Reman, and a fully-equipped technical training facility that offers basic engineering skills and productspecific training to customers and team members. “We continue to invest in infrastructure and service facilities to meet the needs of the dynamic environment that we operate in, all aimed at exceeding customer
expectations,” Hollhumer shares. Immersive Technologies, a Komatsu-owned company, also offers simulators for the development of operators and technical staff.
SAFETY COMES FIRST For all Komatsu employees, SLQDC (safety, law, quality, delivery, cost) represents the order of priority when making decisions. This order applies to the entire company, including Komatsu’s offices, production floors, suppliers, and partners.
local community. Societal values are ingrained in the company’s purpose and guide its business. AMBITION - Striving for constant improvement. PERSEVERANCE - Never wavering from promises made. COLLABORATION - A win-win approach to all relationships. AUTHENTICITY - Act with sincerity, integrity, honesty, and communicate transparently.
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Pragmatic Partnership: Driving Efficiency, Innovation, and a Greener Planet with Komatsu and Cummins The power of partnership to drive efficiencies and innovation is well understood, especially across advanced manufacturing value chains. However, great partnerships don’t just happen. They require alignment of purpose and expertise to deliver greater value than the sum of their parts.
Writing in Harvard Business Review, researchers at Meta point out that while partnerships can accelerate innovation, “offset R&D costs, add expertise and flexibility, and help create new markets” the majority of these collaborations – at least in the tech industry - don’t produce results. The well-documented reasons for this include, “companies choose partners who aren’t a good fit, they set misguided goals, they fail to communicate effectively or fail to deliver per product requirements.” As the past 25 years have demonstrated, the partnership between Komatsu and Cummins is one that consistently works to the strengths of each partner to deliver results that benefit customers. What’s the secret of this successful collaboration across markets and industries? One critical factor is that the partnership is not driven by innovation for innovation’s sake. Rather, the partnership delivers innovation with a clear purpose: to continuously enhance solutions that cater to the most demanding market requirements today, across various conditions, and anticipate the solutions users will require in the future.
Pragmatic partnership for a greener planet
For instance, we can see this approach at work in the way Cummins and Komatsu collaborate to deliver a pragmatic and innovative pathway to carbon neutrality. Both Komatsu and Cummins are committed to ambitious emissions targets and both companies have deep experience in delivering the power technologies and equipment needed for mines, construction sites, and complex industrial facilities. It is no surprise, therefore, that the companies have built on their experience working together to create fit-for-purpose, zero emissions power technologies for the mining sector. Of course, while many miners have their eyes firmly set on a net zero horizon, they may not be able to decarbonise overnight. Once again, Cummins and Komatsu’s customer-focused innovation provides a bridge to a greener future. For example, the partnership delivers equipment to miners across Africa that meets the needs, capabilities, and constraints of local conditions. No less importantly, equipment can be adapted to lower carbon output, futureproofing miners’ investment and enabling a seamless transition to renewable mining.
User-first efficiency gains
Another exemplary showcase of Komatsu and Cummins’ customer-centric innovation is their collaborative effort to develop an integrated equipment and engine monitoring solution, designed to enhance mine maintenance optimisation.
WWW.CUMMINS.COM
The companies’ uniquely close working relationship enabled them to deliver a remote equipment monitoring system that provides for a single, consolidated data monitoring and collection process, that enables experts from both Cummins and Komatsu to assess – and proactively manage – asset health on a mine site. The monitoring is designed to reduce downtime and unplanned maintenance, decrease production costs, and predict maintenance requirements. At the same time, the shared infrastructure is streamlined, efficient, user-friendly, and costeffective and provides enhanced information security. This feat of integration not only demonstrates strong engineering principles but also signifies the benefits of a focused organisational strategy. The close and productive relationship between Cummins and Komatsu, coupled with their continuous efforts to improve their combined product offering, results in both production-level advantages and, crucially, a superior and more efficient product for customers.
Quality service as the benchmark
These case studies demonstrate how good partnerships translate into better products and services for customers. However, developing partnerships that deliver results doesn’t happen overnight. In the case of Komatsu and Cummins, reaching a level of integration where the partnership can deliver real value to clients in global markets is an ongoing process that requires trust, mutual respect, and a commitment to delivering long-term strategic goals together. The upshot is that Cummins and Komatsu don’t simply collaborate – they act as a single team. Moreover, this integration takes place at every level, and across departments, from engineering to marketing and beyond – identifying problems and opportunities and creating integrated solutions. For each partner, the benefits are clear. Komatsu effectively leverages Cummins’s expertise as a power system expert, integrating the latest advances in engine technology, fit for the market and fit for the future. For Cummins, Komatsu is more than a customer, Komatsu is a like-minded partner which provides opportunities, territories, and technologies that enable Cummins’ innovation, providing a platform for meaningful social and business development. Of course, the true value lies in the enhanced service the partnership offers to customers. Ultimately, this is the benchmark that truly matters, and the foundation upon which the partnership is built. “Cummins and Komatsu have been long-term partners with a focus on continued collaboration to drive the best total cost of ownership (TCO) for the customers. Cummins continuously endeavours to develop the best available products in the market, and offer best aftermarket sales and service network to support our customers and maximised the productivity of our products.” EL Hadji Fame – Managing Director, Cummins South Africa.
GROUNDBREAKING POWER AND PRODUCTIVITY Driven by the needs of our customers, we’re investing heavily in developing ever better products, to help keep you operating at the lowest cost, maximize your production, and keep you ahead.
WWW.CUMMINS.COM
KOMATSU MINING
“ W E O F F E R A F U L L S U I T E O F E Q U I P M E N T, M I N I N G S O L U T I O N S , A N D S E R V I C E S T H AT A L L O W A M I N E T O P A R T N E R W I T H O N E B R A N D TO D E L I V E R T H E F U L L R E Q U I R E M E N TS ” – H E R M A N N H O L L H U M E R , G E N E R A L M A N A G E R - M I N I N G O P E R AT I O N S S O U T H A F R I C A , K O M AT S U
“We make decisions and act according to the priorities of SLQDC. Safety always comes first, and the order is never mixed or reversed,” emphasises Hollhumer. “From providing safe products to the overall safety of our automatic operational systems, we persistently utilise the full scope of our innovation capabilities to find ways in which safety is used to maximise the value of our products to our customers.” Through collaborating with clients, 138 | Africa Outlook Issue 105
Komatsu develops solutions to mitigate or eliminate hazards in the workplace by integrating DANTOTSU products, services, and solutions to generate a positive cycle to resolve environmental, social, and governance (ESG) issues, including worksite safety. For example, Komatsu introduced the ICT Bulldozer and ICT Hydraulic Excavator in 2013 and 2014 respectively, which automated the control of blades
and buckets. These systems allow less experienced workers to perfectly reproduce the same high-level precision construction work of a skilled worker. “This has eliminated the need for ancillary workers and guiding processes, thus enabling our customers to make huge savings on rework costs and improving general safety,” Hollhumer explains. Komatsu’s Autonomous Haulage System (AHS) is another example
KOMATSU MINING
WE DESIGN, MANUFACTURE, AND REPAIR EARTHMOVING EQUIPMENT AND RELATED ATTACHMENTS
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Where other companies stop, Machinery Contractors only start of a safety innovation that has been implemented in major mines in Australia and Chile by the company, who is also promoting remote controlled operation of the PC7000-11 hydraulic excavator and 100-tonne track dozers for mining sites. “We look forward to deploying these solutions in Africa. Currently, Komatsu has more than 600 AHS trucks active globally,” he states. Remote controlled track dozers and hydraulic shovels are additionally offered by Komatsu to complement the transition to autonomous operations. This technology improves the productivity of the equipment and removes operators from higher risk areas. Immersive simulator technology, meanwhile, offers the ability to practice simulated emergency situations in a safe environment. “Innovations have improved health and safety when using Komatsu’s products, from doziness detection
to collision avoidance interface technology and autonomous operations,” notes Hollhumer.
CREATING VALUE The company is also supplying a 4800XPC electric rope shovel to Anglo American Platinum’s Mogalakwena mine, with delivery planned for April 2024. Built for tough environments, the 4800XPC delivers consistent uptime,
Machinery Contractors Machinery Contractors (Pty) Ltd Tel:+27(0)12 250 3534 |Tel:+27(0)12 250 8956 Fax:+27(0)12 250 2620 Email: info@machinerycontractors.co.za
a high cutting force, and is engineered for increased digging power and faster cycle times, utilising the latest mining technology. “It is the largest shovel in the world, and the first unit in Africa. This is the most energy efficient tool available and has a 20-year lifespan with numerous rebuild and remanufacturing activities to reduce the carbon and raw material footprint,” Hollhumer informs us.
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KOMATSU CORPORATE SOCIAL RESPONSIBILITY PRACTICES Corporate social responsibility (CSR) is at the core of Komatsu’s business activities – in essence, the company’s work addresses essential social needs. Komatsu recognises these social needs and focuses on education and supplier development programmes. Some of the initiatives that the company is involved in include: • YES4YOUTH employment initiative • CAREER Wise bursary services • STEM learner development • TECHNICAL Education for Communities (TEC) programme • F21 Foskor Half Marathon • ORAPA GM Charity Walk • JWANENG GM Cycle Race • MOGALAKWENA Charity Golf Day • BREAST cancer awareness campaign • THEO Jackson Jeppe Trust • EL-SHAMMAH Home for Abandoned Babies • COMMUNITY clean-ups • HIGHVELD Training Centre (HiTC) apprentice programme • AFRICAN Blessings
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Elsewhere, the company has introduced its underground hard rock fleet options with various marketleading design features, combined with Komatsu’s industry flagship Montabert drifter for improved drilling performance. Advanced underground digital communication and analytics solutions from Mine Site Technologies (MST) are also offered by Komatsu, alongside the recent launch of an online e-commerce portal, and investment in the growth of the forestry market. “We recognise the importance of the sustainability of forests and the ecosystem’s importance to the planet,” says Hollhumer.
Komatsu equally recognises that people are its greatest asset, as the company seeks to continue to create value and grow in the current era of volatility and uncertainty. “We believe people are the business, and their contributions in every aspect are invaluable. The ongoing growth of Komatsu will require us to develop human resources with frontline capabilities, built on our four values (ambition, perseverance, collaboration, and authenticity) that support us in acting in accordance with the ‘Komatsu Way’ and fulfilling our purpose,” he outlines. Just like the good judgment exercised in Komatsu’s corporate management, frontline capabilities
KOMATSU MINING
“ W E A R E A C AT E G O R Y L E A D E R I N I N N O VAT I O N A N D T E C H N O L O G Y. O U R J A P A N E S E H E R I TA G E I M P L I E S P R E C I S I O N A N D R E S P E C T T O WA R D S N AT U R E ” – H E R M A N N H O L L H U M E R , G E N E R A L M A N AG E R - M I N I N G O P E R AT I O N S S O U T H A F R I C A , K O M AT S U
need to be honed by accumulating wisdom and tackling new challenges. “We take great pride in the development of our team members. We aspire to offer technical expertise to meet the demanding requirements of our industry.” Currently, Komatsu is supporting 100 apprentices and five graduate
engineers for its South African operations. As well as team members, business partners are at the heart of the company’s value proposition to customers. Komatsu partners with local supply and manufacturing businesses to meet the demand of its diverse customer base.
Delivering the operational plans and targets is one of Komatsu’s key priorities for 2024, along with driving towards zero injuries and occupational health incidents, growing the business through improved service and equipment deployment, and harnessing its technology solutions to optimise equipment performance and value delivery to the customer. “Ultimately, it’s about living our brand promise of creating value together!” concludes Hollhumer.
KOMATSU Tel: + 27 11 923 1000 komatsu.com Africa Outlook Issue 105 | 141
A D I G I TA L R E VO L U T I O N IXAfrica is the site of a considerable tech revolution as Kenya’s investment in digital infrastructure continues to expand. Snehar Shah, CEO, tells us more about the company’s recent growth Writer: Lily Sawyer | Project Manager: Bex Middleton
IXAFRICA TECHNOLOGY
K
enya’s technology sector, often dubbed the ‘Silicon Savannah’, is rapidly developing into a hub for entrepreneurship and innovation. The country has seen increased public and commercial investment in digital infrastructure, creating a climate that supports the growth of forward-thinking enterprises. In turn, this has resulted in a remarkable expansion of sectors such as mobile communications, e-commerce, and FinTech in Kenya. The potential for innovation and growth in this field is exciting, especially considering Kenya’s youthful and tech-savvy population. IXAfrica’s Nairobi One data centre is leading the way in enabling this digital revolution. “IXAfrica is the leading hyperscale data centre provider in East and Central Africa, offering state-of-theart facilities for cloud, colocation, and connectivity services,” opens Snehar Shah, CEO. The company has plans for multiple data centres strategically located across the region, which ensure reliable and wide-reaching services for every client. IXAfrica’s customer base spans an extensive number of industries, from financial institutions to tech firms, who all rely on the company for critical infrastructure needs. With a dedicated team of highly skilled professionals, IXAfrica’s diverse workforce is committed to delivering exceptional service.
LEADING THE WAY IXAfrica is proud to be the largest digital habitat in East Africa for cloud, colocation, and connectivity. Its data centres are equipped with cutting-edge technology, ensuring consistently reliable, uninterrupted services. “We have invested significantly in our infrastructure, making us the largest data centre project in the region. Our aim is to provide Africa Outlook Issue 105 | 143
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a world-class environment for businesses looking to harness the power of digital transformation in East and Central Africa,” Shah shares. IXAfrica prioritises security, redundancy, and scalability, ensuring that its clients’ data is readily available. Significantly, the company is currently the only campus in East Africa fully equipped with the ability to host artificial intelligence (AI) servers from the hyperscalers. At 4.5 megawatts (MW), IXAfrica’s first phase is already the largest in the country. Its plans to build a further 18MW in its current campus, in addition to potentially 53MW on a second site in Tilisi, will make the company a considerable tech giant in the industry. “What sets IXAfrica apart is our unwavering commitment to excellence and innovation,” adds Shah. 144 | Africa Outlook Issue 105
Africa Outlook: Could you tell us more about IXAfrica’s dedication to sustainable and responsible corporate practices? Snehar Shah, CEO: “Corporate social responsibility (CSR) is a fundamental part of our business ethos. We are committed to sustainability both in our operations and in the communities we serve, and have adopted a wide range of innovations in the data centre industry. “We are in discussions with a view to implementing other renewable sources, such as solar, to supplement power generation from the grid. Additionally, our data centre has been designed to operate at a power usage effectiveness (PUE) of 1.25 at maximum load, meaning it can run in a more efficient manner compared to the European benchmark of 1.40. “Kenya’s energy is 92 percent renewable, sourced from a combination of geothermal, hydro, wind, and solar energy. IXAfrica seeks to align with the country’s sustainable practices by regularly directing impact studies for noise, light, gas, water, and traffic pollution, to ensure we are compliant with rigorous environment, health, and safety (EHS) processes and practices. “Our ‘Keep it Africa’ modus operandi is focused on a sustainable supply chain by localising and regionalising procurement. This objective will boost the local economy and ensure that the company maintains a reduced carbon footprint.”
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Africa Outlook Issue 105 | 145
IXAFRICA TECHNOLOGY
• Colocation services
A recent USD$50 million investment in expansion reflects IXAfrica’s commitment to meeting the growing demands of its clients and, in turn, bolstering the region’s digital transformation.
• Remote hands and eyes
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• Industry solutions • Migration services • Connectivity options • Bespoke data halls • Campus specifications • Internet exchanges
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Partners, suppliers, and a wealth of dedicated staff are integral to IXAfrica’s undeniable success in recent years. The company also collaborates closely with technology partners and suppliers to maintain the highest standards in its services. “We have partnered with the London Internet Exchange (LINX), which is one of the largest peering networks in the world. With its point of presence in Kenya, internet service providers (ISPs) will be able to connect to the wider LINX network,”
excites Shah. IXAfrica also collaborates with cloud and technology companies to provide them with a robust and reliable environment, whilst an extensive satellite landing station capacity enhances connectivity options. Additionally, the company’s serviced office space offers a convenient on-campus location for businesses to operate and collaborate, fostering innovation and growth in-house. “Our talented staff are the backbone of our organisation, and their expertise and dedication are crucial in providing top-tier services to our clients,” he continues. IXAfrica actively recruits qualified engineers and technicians, whilst providing cutting-edge training in
“IXAFRICA IS THE LEADING HYPERSCALE D ATA C E N T R E P R O V I D E R I N E A S T A N D C E N T R A L A F R I C A , O F F E R I N G S TAT E - O F -T H E A R T FA C I L I T I E S F O R C L O U D , C O L O C AT I O N , AND CONNECTIVITY SERVICES” – SNEHAR SHAH, CEO, IXAFRICA
staff members’ fields to equip them with the necessary tools for their continued success. The company is building a worldclass team based locally in Nairobi, Kenya, thanks to Founder and Chair, Guy Willner, an experienced veteran in the industry having grown IXEurope and sold it to Equinix in 2007. Its senior leadership was also behind the set-up of Teraco in South Africa, having run other large data centre operations in the region. “Our partners and shareholders have been driving the largest power engineering projects in Africa in partnership with global leaders such as Schneider,” adds Shah.
LOOK TO THE FUTURE IXAfrica is continuously exploring opportunities to enhance its services
and support digital transformation in the region and beyond. “We are actively evaluating partnerships and investments that align with our mission of advancing technology in the region,” Shah divulges. IXAfrica is committed to staying at the forefront of cloud connectivity. Its key priorities for the coming year include the successful completion of its extensive expansion project. Through the company’s evolution, it intends to further strengthen its ecosystem of cloud and technology partners and continue to innovate in the data centre space. In addition, IXAfrica will explore new partnerships and investment opportunities that align with its ethos and core values. The widespread implementation of hyperscalers is the company’s most
recent objective. Kenya’s growing internet penetration makes it a prime destination for this development, whilst the majority of the country’s power generation is renewable, contributing to the sustainability goals of the proposal. “The revolution to implement hyperscalers has begun. It is not a question of if, but when IXAfrica is able to host the cloud locally to meet the data sovereignty and latency requirements,” Shah concludes.
IXAFRICA Tel: +254 793 973 584 info@ixafrica.co.ke www.ixafrica.co.ke Africa Outlook Issue 105 | 147
E M P OW E R I N G
E X PA N S I O N As South Africa’s renewable energy sector grows, so does energy and utilities company African Clean Energy Developments. James Cumming, General Manager, tells us more about its recent expansion and vision for the future Writer: Lily Sawyer | Project Manager: Kyle Livingstone
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AFRICAN CLEAN ENERGY DEVELOPMENTS ENERGY & UTILITIES
I
n recent years, South Africa’s energy and utilities sector has undergone considerable change in response to an energy crisis which has seen nationwide undersupply, coal obsolescence, and a poor and ageing coal fleet. Consequently, the country finds itself amid a widespread transition towards renewable energy, which has seen the government deregulate the power market and encourage renewable energy deployment. As a result, private energy generation and offtake, embodied by the work of African Clean Energy Developments (ACED),
is now widely encouraged, placing the company at the helm of South Africa’s clean energy industry and transition. “We are in the midst of a global energy transition, and to be part of that is fascinating and meaningful in a number of ways,” opens James Cumming, General Manager of ACED. The company, headquartered in Cape Town, has been in operation since 2008 and developed more than 700 megawatts (MW) of wind power, as well as 500MW of solar power, under the Department of Mineral Resources and Energy’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The company also has 170MW of
wind and 30MW of solar projects currently under or completing construction in the private offtake market. “To have ACED leading this market is extremely rewarding for the team and our business. Beyond what it means for us and our shareholders, it’s great to be solving South Africa’s current energy crisis with clean power and local capital, whilst creating jobs and fostering investment,” he continues. The company’s private projects have been market-leading South African firsts, providing clients such as Harmony Gold, Sibanye Stillwater, and Sasol South Africa with low-cost, zero-emission power solutions.
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SEEKING OUT SUCCESS With a further 470MW of private ACED projects due to enter construction in the next two quarters, Cumming attributes the company’s success to a number of core competencies. “As a business, we are particularly solution and execution focused. We are a lean team of highly skilled and motivated people that get things done by maintaining a sense of opportunism and entrepreneurialism, while ensuring we are professional and honour the fiduciary duty of our shareholders,” he divulges. ACED is further developing more than four gigawatts (GW) of wind
projects and 5GW of solar photovoltaic (PV) projects for private clients and governments, mostly in South Africa, but also in Eswatini, Namibia, and Malawi - projects that epitomise the company’s expertise. ACED has a unique track record of taking projects from early development to financial close, contributing to its overall success. “It allows us to ensure we close the loop in development and delivery, ensuring expedience in starting with the end in mind, and enabling more value engineering in the push to financial close and construction.” Renewable energy projects, much like most large infrastructure projects,
can take many years to come to life, but ACED has shown an ability to consistently deliver whenever the market allows. “From greenfield development to financial close and delivering a project to commercial operations, we pride ourselves on being swift, organised, and facing the plethora of challenges that arise in this industry, head-on,” Cumming highlights.
PRIDE IN PEOPLE ACED benefits from having a focused team of committed employees. The company entrusts a team of 17 dedicated people with the development and asset origination of its projects.
“ W E P R I D E O U R S E LV E S O N B E I N G S W I F T, O R G A N I S E D , A N D FA C I N G T H E P L E T H O R A O F C H A L L E N G E S T H AT A R I S E IN THIS INDUSTRY HEAD-ON” – JA M E S C U M M I N G , G E N E R A L M A N AG E R , A F R I C A N C L E A N E N E R GY D E V E LO P M E N TS
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UNLOCKING THE GRID • ACED is aiming to reach financial close on a large-scale energy trading power purchase agreement (PPA) with a trader recently founded in South Africa. • Much like many other countries, South Africa’s grid is currently constrained in areas best suited to renewables development. • As it continues to expand, ACED is working to help foster the grid market segment in a beneficial
A larger team works diligently across various parent and sister businesses, covering roles from support to asset management, bringing an additional 45 people into the full project life cycle. “Our staff are everything. We would be nothing without them; they are ACED,” Cumming states appreciatively. In a booming energy market, ACED has experienced exponential growth
of late, demonstrated by its ongoing development and origination efforts. In response to the company’s recent expansion, Cumming details how the team adapts and grows. “With the market as hot as it is, the days are long and stress levels are often high. We like to think of ourselves as a family but also as a high-performance sports team,” he elaborates.
way for both the private and public sector. • Whilst constantly developing and growing its greenfield pipeline and pushing the boundaries on using large-scale renewable energy generation, the company hopes to unlock grid capacity in South Africa.
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AFRICA OUTLOOK: COULD YOU TELL US MORE ABOUT YOUR CORPORATE SOCIAL RESPONSIBILITY (CSR ) PRACTICES? James Cumming, General Manager: “We implement such practices on a project-by-project basis in both our REIPPPP projects and in the private sector. “This is mostly funded by economic development contributions from review sharing, but also via community trusts that hold equity in some of the projects. “Our sister asset management company, EIMS, has a full-time community operations and economic development team, ensuring impactful results from the development initiatives that the projects fund.”
“We expect a lot from each other, but I’d like to think no individual ever feels alone or over-stretched – hard work gets recognised, and growth aspirations can constantly be explored.” In addition to its employees, ACED values its financial partners highly. Owned and funded by Old Mutual’s African Infrastructure Investment Managers (AIIM), and the IDEAS Fund (one of the AIIM managed funds), ACED is part of a wellestablished and vertically integrated ecosystem of businesses within the group. Most notable is Energy Infrastructure Management Services Africa (EIMS), who manages the assets of ACED-developed projects to ensure optimal performance. Enabled by a supportive network of owners and partners, considerable exposure to multiple work streams symbolises growth and advancement within the company. “While it is hard work, it is also interesting and rewarding in a number of ways,” Cumming reflects.
CELEBRATING SUPPLY CHAIN As a considerable clean energy player in South Africa, ACED naturally relies heavily on its suppliers. “Supplier relationships are vital to the success of our projects. With this in mind, we do our best to ensure we run rigorous, fair, but competitive tender processes,” explains Cumming. The company values its suppliers and contractors highly and views them as partners in its projects. ACED recognises the challenging commercial discussions that must take place as it seeks to balance economic risk within a tough climate, yet supplier and contractor relations remain strong. Notably, the company carries out its wind farm developments under split contracts and solar PV is still typically an engineering, procurement, and construction (EPC) contract. Therefore, ACED’s direct relationship with equipment suppliers on these projects is typically limited. However, this is beginning to change as the company seeks to ensure competitiveness across its procedures.
“ O U R S TA F F A R E E V E R Y T H I N G . W E WO U L D B E N OT H I N G W I T H O U T T H E M ; T H E Y A R E AC E D ” – JA M E S C U M M I N G , G E N E R A L M A N AG E R , AFRICAN CLEAN ENERGY DEVELOPMENTS
154 | Africa Outlook Issue 105
“WE ARE IN THE MIDST OF A GLOBAL ENERGY TRANSITION A N D T O B E P A R T O F T H AT I S FA S C I N AT I N G A N D M E A N I N G F U L I N A N U M B E R O F WAY S ” – JA M E S C U M M I N G , G E N E R A L M A N AG E R , AFRICAN CLEAN ENERGY DEVELOPMENTS
AFRICAN CLEAN ENERGY DEVELOPMENTS ENERGY & UTILITIES
“This doesn’t apply to wind turbines, where we contract directly with original equipment manufacturers (OEMs). We have done projects with all the major players over the years,” Cumming clarifies. ACED aims to treat suppliers and contractors equally, not necessarily having explicit framework agreements in place as yet. “It is useful to be able to call on past relationships and documentation sets when completing new projects,” he comments.
LOOKING AHEAD The Msenge Emoyeni Wind Farm and Castle Wind Farm can be seen as prime examples of the company’s recent expansion, as they are the first private wind power projects in South Africa and the only ones in the country to have reached financial close at the time of writing. “The Msenge Emoyeni Wind Farm is eight months into construction. It has an installed capacity of 72MW and uses Goldwind turbines. “Comparatively, the Castle Wind
Farm is six months into construction with an installed capacity of 96MW, and also uses Goldwind turbines,” informs Cumming. Each of ACED’s new wind farm developments are under wheeling arrangements with large global companies that benefit as offtakers. A rise in South African wheeling agreements can be seen as emblematic of the country’s surge in private renewable energy production, enabled by the government’s removal of several regulatory barriers, and a growing global appetite for onshore wind and solar PV energy. “The offtaker for the Msenge Emoyeni Wind Farm is Sasol South Africa (Sasol) and the project will also supply renewable energy to their Sasolburg site via a wheeling arrangement. The power Sasol is purchasing from the wind farm will be used to secure a renewable energy supply for green hydrogen production. The commercial operations date (COD) will be reached in early 2024. “The offtaker for the Castle Wind
Farm is Sibanye Stillwater, and the project will supply renewable energy to their mines via a wheeling arrangement that will reduce their input costs and decarbonise their operations. The COD will be reached in early 2025,” Cumming outlines. ACED anticipates closing another 50MW solar PV project in the coming months and will close a further 420MW of wind projects in Q1 and Q2 2024 – all for private offtakers. “We are very proud to be leading the private offtake market in South Africa, but we also look forward to participating in government procurement programmes in the near future,” he concludes.
AFRICAN CLEAN ENERGY DEVELOPMENTS Tel: +27 21 670 1402 info@aced.co.za aced.co.za Africa Outlook Issue 105 | 157
ST E WA R DS OF
THE SERENGETI
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SERENGETI ENERGY ENERGY & UTILITIES
Serengeti Energy has harnessed the power to provide clean and affordable energy, contribute to environmental sustainability, and advance economic development. Chief Technical Officer, Brian Brooks, tells us more Writer: Ed Budds | Project Manager: Kyle Livingstone
T
oday, in sub-Saharan Africa (SSA), energy demand is surging, and climate change concerns are intensifying daily. In this evolving framework, the role of independent power producers (IPPs) is one of great significance. As such, Serengeti Energy firmly believes that renewable energy holds the key to unlocking Africa’s potential for a sustainable and
prosperous future. “Our mission is to provide electricity through renewable energy resources in sub-Saharan Africa; we are developing, building, and operating small to medium-sized renewable energy power plants to help support sustainable economic growth in the region,” introduces Brian Brooks, Chief Technical Officerof Serengeti Energy. Africa Outlook Issue 105 | 159
SERENGETI ENERGY ENERGY & UTILITIES
AFRICA OUTLOOK: HOW DID YOU BECOME INTERESTED AND INVOLVED IN THE ENERGY AND UTILITIES INDUSTRY? Brian Brooks, Chief Technical Officer: “I spent 20 years in the
“ W E C O N D U C T E N V I R O N M E N TA L A N D S O C I A L I M PAC T A S S E S S M E N T S TO I D E N T I F Y P OT E N T I A L C H A L L E N G E S A N D M I T I G AT E A N Y N E G AT I V E E F F E C T S O N LOCAL COMMUNITIES AND ECOSYSTEMS” – BRIAN BROOKS, CHIEF TECHNICAL OFFICER, SERENGETI ENERGY
manufacturing industry before becoming part of the renewable energy family. My manufacturing experience was in high-energy usage plants around the world before the real pressure started gathering to reduce noxious emissions and I started becoming concerned about the damage our industry was doing to the environment. “When the opportunity came to join the renewables space, I didn’t think twice about it. I started off working for a solar subsubcontractor as a construction manager and eventually joined a major EPC company responsible for the construction of projects across Africa over a period of five years before joining the IPP space in 2018. I then joined Serengeti Energy as Chief Technology Officer in September 2023.”
Across SSA, each country presents a unique energy landscape, driven by distinct policies, regulations, and market dynamics. “As a company, our success thus far can be attributed to a thorough understanding of local policy, identifying mutually impactful opportunities for the business and the country, and implementing the right technology mix to ensure the electricity supply is stable and sustainable,” he continues. Alongside this, the renewable energy landscape in Africa is growing as the demand for power continues. Serengeti Energy is playing its part by 160 | Africa Outlook Issue 105
investing, developing, constructing, and operating renewable energy power projects that contribute to bridging the energy deficit in SSA. The region is also vulnerable to climate change and extreme weather conditions, which in some cases cause heavy floods and landslides, impacting on the company’s power plants and the communities around it.
DEVELOPMENT AND COLLABORATION Collaboration with local stakeholders is a key step in Serengeti Energy’s development process. This involves partnering with government
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authorities, utilities, and the communities that its projects directly impact. Building trust, ensuring mutual benefit, respecting local values, and addressing its concerns are therefore critical for Serengeti Energy. “We conduct environmental and social impact assessments to identify potential challenges and mitigate any negative effects on local communities and ecosystems, in strict adherence to local and international regulations and best practices, while ensuring that the project is also viable for the company and its investors in the long term,” Brooks tells us. Project development also involves the entire journey from inception 162 | Africa Outlook Issue 105
to operation. It begins with a needs and opportunity assessment in the country that Serengeti Energy intends to develop a project, followed by meticulous site selection, guided by comprehensive resource assessments. “Next, our experienced development teams analyse the solar irradiation, wind patterns, hydrological data, and other variables, ensuring that our potential projects are strategically constructed in areas where renewable resources are rich, maximising energy generation efficiency,” he adds. In parallel, the company’s development team reaches out to potential offtakers and public
stakeholders to ensure the alignment of the project with its stakeholders’ needs and advance on power purchase agreements (PPAs) and permit discussions. Once a site is approved, detailed planning and engineering come into play. Serengeti Energy’s engineering and construction team, together with its environmental, social, and governance governance (ESG) teams, collaborate to design projects that are not just energy-efficient but also sustainable. “We integrate the latest advancements in solar array technology, water-to-wire equipment, and grid protection infrastructure, to optimise the performance and
reliability of our installations.” At Serengeti Energy, the company views investment in renewable energy and development not just as a process but as a commitment to a brighter tomorrow. Collaboration with reliable development finance institutions has provided crucial support, and the company also relies on the Serengeti Energy Technical Assistance Fund to de-risk projects in the development stage, to enable it to focus on making them more viable and attractive to local governments.
ENVIRONMENTAL STEWARDS Serengeti Energy is committed to a proactive ESG approach, focusing on minimising negative impacts and fostering positive outcomes. “Inclusivity is the cornerstone of our strategy; through stakeholder consultations, we cultivate strong community relationships. Gender inclusivity is also a top priority within our ESG mandate, driving our efforts to boost female representation across all organisational levels,” acclaims Brooks. “Our actions are guided by comprehensive policies addressing diversity, gender equality, and inclusion,” he continues. Furthermore, Serengeti Energy remains deeply committed to minimising the impact on its communities by engaging in meaningful consultations with all Project Affected Persons (PAPs)
MITIGATING RISK SERENGETI Energy has adopted a comprehensive approach to safety and risk management to safeguard its investments, manpower, and infrastructure to ensure the long-term profitability and sustainability of operations, and the wellbeing of its surrounding communities. MITIGATING risk is essential to ensure continuous electricity supply, compliance with agreements, financial sustainability, attracting investment, and most importantly, supporting the region’s socioeconomic development. Some of the measures the company has undertaken include: • Comprehensive environmental impact assessments during all stages, including development, construction, and operations to address potential environmental and ecological impacts, and implement safeguards accordingly. • Installation of early warning systems to notify the teams on site of potential flooding. Serengeti Energy has established open communication channels with local communities and authorities through its experienced Community Liaison Officers who help coordinate flood preparedness and response efforts, enhancing overall safety. • Construction of flood barriers to prevent floodwaters from reaching critical areas of the power plant and nearby settlements. • Landslide stabilisation measures, such as soil reinforcement and slope protection through building gabions to reduce the risk of landslides affecting the plant. • Installation of drainage and water diversion systems to channel floodwater and surface run-off away from sensitive areas. • Routine inspections of all infrastructure and equipment to identify potential vulnerabilities. • Comprehensive insurance coverage, which is important to protect against operational risks, such as equipment damage, natural disasters, and business interruption.
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“ O U R AC T I O N S A R E G U I D E D BY COMPREHENSIVE POLICIES ADDRESSING D I V E R S I T Y, G E N D E R E Q U A L I T Y, A N D INCLUSION” - BRIAN BROOKS, CHIEF TECHNICAL OFFICER, SERENGETI ENERGY
throughout project lifecycles. This dedication extends to the development and execution of livelihood restoration measures, effectively mitigating the project’s effects on their income. “Our Livelihood Restoration Programme (LRP) in Malawi has significantly benefited 120 Project Affected Households (PAH) engaged in agriculture. This initiative includes vocational training, transitional support, and the provision of agricultural inputs.” 164 | Africa Outlook Issue 105
Encouragingly, the LRP’s vocational training programme has seen a 71.3 percent success rate and, as such, several beneficiaries have transitioned into entrepreneurial endeavours, aided by start-up kits. Environmental stewardship is a core priority for Serengeti Energy, evident through the company’s rigorous management of environmental issues as well as being actively engaged in a conservation initiative, exemplified by its Uganda projects’ conservation
programme. Collaboratively designed with communities, this initiative emphasises soil protection, catchment conservation, and sustainable livelihoods. Giving back also remains integral to Serengeti Energy, and its CSR policy champions communitydriven projects, empowering local participation and ownership through inclusive community institutions. This impactful approach resonates across all the company’s ongoing CSR initiatives, underscoring its dedication to meaningful community impact.
CAPACITY BUILDING FOR THE FUTURE Capacity building is a key activity within Serengeti Energy and its Technical Assistance (TA) facility and aims to support the sustainable market development for renewable energy in Africa.
The TA fund at Serengeti Energy, which was established to address the shortcomings of the renewable energy generation market, aims to counter issues such as lack of experience from local developers and build capacity with local promoters and financial institutions to support renewable energy projects in underserved regions in SSA. As part of this mandate, the Serengeti Energy TA facility, and Private Financing Advisory Network (PFAN), a global network that facilitates investments in clean energy and climate adaptation projects, joined forces in 2022 to drive the Umoja Incubator project. “This was inspired by the shared vision to empower local entrepreneurs and accelerate the development of sustainable energy solutions in underserved communities,” qualifies Brooks. The Umoja Incubator programme is an initiative designed to identify, mentor, and support local aspiring developers in the renewable energy sector who have big ideas but lack the experience or financial capabilities to bring their projects to completion. Local developers submit their project proposals online for review by a panel of professional judges; thereafter, the
best proposals are shortlisted and invited to an in-person workshop to make their final pitches after which the winning renewable energy project is selected and announced. The winning projects enter a partnership with Serengeti Energy where they are taken through several commercial and technical training courses, and eventually receive funding. Elsewhere, regarding the future of the company, the priority for Serengeti Energy is to continue building small to medium-scale hydro and solar plants with a suitable proportion of battery storage, consistently from year to year. “In the short term, we will maximise the performance of our existing assets to generate revenue and balance sheet strength to support the growth of the business,” concludes Brooks enthusiastically.
SERENGETI ENERGY Tel: +254 115 546 710 info@serengetienergy.com serengetienergy.com Africa Outlook Issue 105 | 165
THE FINAL WORD To round off each issue, we ask our contributing business leaders for their views on the same question
What advice would you give to someone considering entering your industry?
Wouter van der Merwe Managing Director, Raubex Construction “Entering the construction industry is a challenging environment both mentally and physically. Here are a few pointers: 1. Be prepared to work hard! 2. Have a never-say-die approach and always have a plan B! 3. Get the best people with the correct skill set and who can work well in a team. 4. Understand your strengths and weaknesses. 5. Get as much information on the type of skills required to make a thorough plan of the work needed. 6. Have a ‘work smart rather than hard’ attitude.” 166 | Africa Outlook Issue 105
Henry Craukamp Managing Director, Sulzer South Africa “For individuals considering a career in our industry, my advice is to cultivate a passion for continuous learning and high-quality service, and embrace adaptability. The industrial landscape is constantly evolving, and staying updated with the latest technologies and practices is crucial. “Additionally, developing strong problem-solving skills and effective communication abilities will set aspiring professionals apart. Building a diverse skill set and being open to challenges will not only lead to personal growth, but also contribute significantly to the dynamic and innovative field of industrial services.”
Mohammed Asif Qasim Managing Director, UNICA Iron and Steel “Innovate, work smart, and be a leader, not a follower.”
Deon Robinson Managing Director, WBHO Building Africa “This industry is becoming very tough, but if you are willing to go the extra mile and have the passion for construction, then it will be very satisfying in the long run.”
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