Africa Outlook - Issue 81

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www.africaoutlookmag.com Issue 81 MURRAY & DICKSON CONSTRUCTION An inclusive, ‘grow with us’ approach to business NAS AIRPORT SERVICES Achieving the taste of excellence As the COVID-19 pandemic progresses, Ghana’s National Insurance Commission is working hard to provide some much needed peace of mind INSPIRING INSURANCE CONFIDENCE IN THE SPOTLIGHT: INTERVIEW WITH PUMA ENERGY AFRICA’S TOP 100 CEO, EGHOSA ORIAIKHI MABHENA

travel magazine

The unrelenting demand to travel, both for business and leisure purposes, is showing no signs of slowing up, and for Outlook Publishing, the growing extent to which we are covering this industry across our existing titles has led to the launch of Outlook Travel magazine.

The major component of the publication takes the form of our Outlook Travel Guides, providing executives, avid travellers and our existing 575,000 international subscribers with the ultimate rundown of all the major economic drivers and thriving hubs across the world, with exclusive input from tourism industry associations and stakeholders – the people who know these places the best.

You can join the vast numbers of tourism sector players enjoying the exposure we provide across our digital and print platforms with a range of options, from advertising through to free-of-charge editorials, extensive social media saturation, enhanced B2B networking opportunities, and a readymade forum to attract new investment and increase exposure.

www.outlooktravelmag.com

EDITORIAL

Editorial Director: Tom Wadlow tom.wadlow@outlookpublishing.com

Deputy Editor: Jonathan Dyble jonathan.dyble@outlookpublishing.com

PRODUCTION

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BUSINESS

Managing Director: Ben Weaver ben.weaver@outlookpublishing.com

Sales Director: Nick Norris nick.norris@outlookpublishing.com

Operations Director: James Mitchell james.mitchell@outlookpublishing.com

PROJECT DIRECTOR

Joshua Mann joshua.mann@outlookpublishing.com

TRAINING & DEVELOPMENT DIRECTOR

Eddie Clinton eddie.clinton@outlookpublishing.com

HEADS OF PROJECTS

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SALES MANAGERS

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CONTACT

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Countering Coronavirus

There is only one topic of conversation on everybody’s lips at the moment, one which seemed barely imaginable just a few months ago.

When China reported its first cases of COVID-19 towards the end of 2019, few would have foreseen the events that have followed, events which continue to sweep across every part of the world.

At the time of publishing this magazine, more than 382,500 cases of COVID-19 have been reported, with 102,000 of those having recovered and over 16,500 people losing their life.

While the vast majority of the infected populous will make a full recovery, the ease at which the virus is transmitting is cause for tremendous concern, especially given the strain it is already placing on some of the most advanced healthcare systems in the world.

Another critical calculation being made is how to balance saving lives and safeguarding economies for when the worst passes. Businesses have a vital role to play in ensuring societies and economies continue to function, and this edition of Africa Outlook looks into some of the work being carried out across numerous industries.

Our cover feature centres on an interview with Justice Ofori, Commissioner of the National Insurance Commission Ghana.

“The global COVID-19 pandemic is the perfect example of why insurance is important,” he tells us. “It’s crucial that we take the necessary safety precautions, washing our hands and using alcohol-based sanitisers to curb its spread, but for those affected by it and falling upon poor health or hardships, insurance can be there to help pick up the pieces.”

Industrial endeavours are also important in keeping economies moving, not least the construction sector, which has endured hardship across the likes of South Africa in recent times. We speak with M&D Construction Group about how it continues to deliver leading, multidisciplined services in a tough period.

Before this you will find an inspiring leadership profile with Puma Energy Africa CEO Eghosa Oriaikhi Mabhena.

Recently named among the top 100 female CEOs in Africa, she discusses her journey to the top of the industry and provides compelling advice for women seeking to follow in her footsteps.

A good news story among the uncertainty caused by COVID-19, we want to continue communicating the positive actions being taken by businesses and entrepreneurs.

Enjoy the read!

WELCOME Africa Outlook issue 81 | 3
12 114 46 18 94 84 REGULARS 14 6 NEWS Around Africa in seven stories 10 EXPERT EYE A look inside the business environment perceptions of Africa’s growing economies BUSINESS INSIGHT 12 Leadership Empowered and Energised An interview with Puma Energy Africa CEO Eghosa Oriaikhi Mabhena 14 Economy The impact of COVID-19 in Africa The Economist Intelligence Unit unveils the effects of the coronavirus TOPICAL FOCUS 18 Tourism Coronavirus and the Impact on Tourism Expert insight from Nigel Vere Nicoll of the African Travel and Tourism Association 134 THE FINAL WORD What is your approach to recruitment and staff development? CONTENTS 4 | Africa Outlook issue 81
20 SHOWCASING LEADING COMPANIES Tell us your story and we’ll tell the world FINANCE 22 National Insurance Commission Ghana Inspiring Insurance Confidence in the Face of COVID-19 Encouraging impactful financial protection 32 Alexander Forbes Botswana Financial Wellbeing and Peace of Mind, for a Lifetime Helping clients achieve a lifetime of financial well-being and security FOOD & DRINK 36 NAS Airport Services Ltd Going the Extra Mile Achieving the taste of excellence 46 COMACO For the Love of Nature Creating harmony between people and planet 52 Twiga Foods Taking Food Further Galvanising Kenya’s grassroots agriculture SUPPLY CHAIN 58 Greendoor Group Bridging the Gap Helping local companies stay on track 64 Reload Logistics Built to Back African Business Motivating trade and transactions 70 Metro Express Limited Mobilising Mauritius Delivering the nation’s first ever light rail system 78 CMC Motors Group Ltd Keeping Industry Moving Delivering leading brands of trucks, tractors and pickups across East Africa CONSTRUCTION 84 Murray & Dickson Construction Curating a Khula Nathi Culture An inclusive, ‘grow with us’ approach to business 94 Laurus Development Partners Redefining Development Setting the standard in real estate 102 Tiber Construction Built to Last Nurturing knowledge to safeguard the future TECHNOLOGY 108 Macrocomm Driven by Data Empowering fleet operators with invaluable insight 114 TESPOK Keeping Kenya Connected Safeguarding communications during a period of crisis HEALTHCARE 118 MediGuide International Improving Outcomes with Alternate Opinions Finding the closest way to the cure RETAIL 130 Matus High-Class Hardware At the heart of quality wholesale FEATURES 36 130 108 70 AFRICA OUTLOOK MAGAZINE Africa Outlook issue 81 | 5

NIGERIA’S JUMIA OFFERS ITS ECOMMERCE NETWORK TO TACKLE CORONAVIRUS

ECOMMERCE FIRM Jumia is stepping in to help the African continent fight the coronavirus pandemic.

The Nigerian-based online retail platform serves 11 countries and will donate certified face masks to health ministries, as well as offer its last mile delivery network to distribute further supplies.

According to the World Health Organization, the number of countries affected jumped from five to 30 within the space of a week, with governments imposing measures to prevent large crowds from gathering in one place.

Jumia will also offer its web platform as a means of sharing information.

Ecobank Transnational Inc. announces new appointments

DR GEORGES Agyekum Nana

Donkor has been appointed as a NonExecutive Director at Ecobank Transnational Incorporated (ETI), replacing the retiring Bashir Mamman Ifo.

Dr Donkor has over 25 years’ experience in senior management roles across the fields of marketing, finance, legal, compliance and administration.

The company’s board also announced the appointment of Zanele Monnakgotla as a Non-Executive Director. Monnakgotla has more than 20 years’ public and private sector experience in structured finance and strategy.

“I do warmly welcome both Dr Donkor and Mrs Monnakgotla and believe that their respective expertise will be most beneficial to the board,” said Emmanuel Ikazoboh, Chairman of the Board of ETI.

Visa partners with Paga on payments and fintech

VISA HAS entered into a partnership with Nigeria-based startup Paga, working together on payments and technology.

Paga was founded in Lagos before expanding into West Africa, Ethiopia and Mexico. The company developed a multichannel network for 14 million Nigerian customers to transfer money, pay bills and make digital payments.

Thanks to the new partnership, Paga account holders are now able to carry out transactions on Visa’s formidable global network.

“We want to expand merchant access to payment acceptance and we want to drive financial inclusion,” said Otto Williams, Visa’s Head of Strategic Partnerships, Fintech and Ventures for Africa.

Around Africa in seven stories…
FINANCE
FINTECH
NEWS 6 | Africa Outlook issue 81
HOSPITALITY

African Development Bank launches Nigerian electrification project

THE AFRICAN Development Bank is working with the Government of Nigeria to launch the National Electrification Project (NEP) to provide Nigeria’s underserved communities with sustainable energy solutions.

The project is to be implemented by Nigeria’s Rural Electrification Agency as part of a target to achieve universal energy access by 2030.

A $200 million fund from the Bank and Africa Growing Together Fund (AGTF) will be channelled into off-grid and mini-grid solutions.

“Over 500,000 people will have access to approximately 76.5 MW of

HOSPITALITY

SOUTH AFRICA’S largest hotel group is prepared for a coronavirus outbreak, putting forward a series of preventative measures. Netcare formed a multi-disciplinary taskforce as soon as the first COVID-19 cases were announced in China to ensure full preparedness.

“We have closely cooperated with the National Institute for Communica-

increased installed power, of which 68 MW will be solar generated,” said Wale Shonibare, African Development Bank’s Vice President for Power, Energy, Climate Change and Green Growth.

ble Diseases (NICD) and the Department of Health (DoH) on an ongoing basis, and have aligned our clinical protocols for managing COVID-19 patients with their clinical guidelines. We have also implemented comprehensive measures to detect, identify and respond appropriately to any suspected or confirmed cases of COVID-19 at any of our group’s facilities,” said Richard Friedland, Netcare’s CEO.

Measures include daily COVID-19 screening of staff, UV light disinfecting robots, restricting visiting times and the number of visitors, and gazebos at entrances to screen patients.

ORANGE MONEY LAUNCHES IN MOROCCO

TELECOMMUNICATIONS

GIANT Orange has announced the launch of Orange Money in Morocco.

The service will allow Moroccans to make payments and transfer money using their phones, this being the 18th country in Africa and the Middle East to offer the service.

Launched in 2008, the Orange Money mobile money solution allows millions of people excluded from the banking system to deposit, withdraw and transfer money.

It records exponential growth –in 2019, $2.83 billion worth of transactions were carried out through Orange Money by 45 million customers across the 18 countries in which it is operational.

JACK MA PLEDGES CORONAVIRUS TESTING KITS FOR AFRICA

CHINESE BILLIONAIRE and Alibaba Co-Founder Jack Ma will donate over a million coronavirus testing kits to the African continent.

Africa had, until recently, been spared the exponential spread of COVID-19, but experts are worried about the impact of the virus on the continent’s fragile health infrastructure.

Jack Ma’s foundation will be sending 1.1 million testing kits, six million masks, and 60,000 protective suits and face shields to Ethiopia, for distribution among Africa’s 54 nations.

He has also pledged $14.5 million towards the development of a vaccine against the virus.

ENERGY
TECHNOLOGY
HEALTHCARE
SA’s Netcare wellprepared for coronavirus outbreak
Africa Outlook issue 81 | 7

Outlook Creative Services

Complementing the production of Africa Outlook, Asia Outlook and EME Outlook magazines, Outlook Publishing’s award-winning in-house team is now utilising these same specialist production skills to offer a full and bespoke range of editorial, design and marketing services via its new Outlook Creative Services division. For more information on how we can work with you in providing a plethora of completely flexible and customisable production services, please visit: www.outlookpublishing.com/creative-services

DESIGN:

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EDITORIAL:

Tom Wadlow +44 (0) 1603 959 657 tom.wadlow@outlookpublishing.com

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A look inside the business environment perceptions of Africa’s growing economies

An analysis of the key trends and takeaways from The Africa List Business Barometer

conditions

private sector

Over the past decade there has been a shift in Sub-Saharan Africa’s economic landscape. Development and growth is increasingly driven beyond the traditional powerhouses of Nigeria, Kenya and South Africa, and the extractive sectors. You can see it through the rapid rise of a country such as Ethiopia, which posted some of the highest economic growth figures globally in the 2010s.

The Africa List is a select network of CEOs and emerging business leaders, with communities in Ethiopia and other emerging African economies: DRC, Tanzania, Uganda, Zambia and most recently Ghana (another of the fastest growing markets on the continent in the last decade).

To harness the insights from this incredible community and shed light on the realities of doing business on the ground through the eyes of those shaping these business environments, we surveyed the membership. In December 2019, The Africa List Business Barometer – the largest survey of its kind ever conducted – brought together the opinions and insights of over 350 business leaders and owners in the Democratic Republic of the Congo (DRC), Ethiopia, Tanzania, Uganda and Zambia, and unearthed some fascinating findings.

Buoyancy on the ground

Perhaps the most striking results are around business confidence. 81 percent of CEOs and business leaders

ABOUT THE EXPERT

Nieros Oyegun joined CDC Group as Head of The Africa List in 2017. Since joining, she has overseen the network as it has expanded across the continent and developed its learning and development offering for members.

Oyegun has a wealth of experience when it comes to doing business across Africa. She previously worked in investment banking and alternative assets, and helped lead the development of Macquarie’s Africa infrastructure project finance and advisory business with landmark projects in renewable energy, toll roads and water treatment. She also served as Head of Corporate Finance and Investor Relations at a portfolio company, one of Nigeria’s largest deep offshore logistics companies.

in Africa’s emerging economies are positive about the business situation in their country, with 87 percent expecting the business situation to remain stable or to improve in the year ahead compared to the current situation. This is despite persistent and often well documented challenges, which our members report on a regular basis, including regulatory obstacles and unstable political environments. Furthermore, and contrary to

popular opinion, the survey found there to be no direct correlation between challenging conditions and business confidence. In fact, the opposite is the case. For example, members in the DRC acknowledged the high-profile challenges created by the political environment in the past year, but were the most positive about an improvement in business conditions, with 75 percent feeling optimistic about the next 12 months.

Whilst there is some difference of opinion on the factors behind this optimism, there appear to be two driving forces. First is the increasing consumer demand for products and services, driven by rising household incomes. And second is the expansion of Africa’s digital and technological infrastructure, which our leaders see as another major opportunity for growth.

Commitment to investing

Our members didn’t just report optimism. They also identified how that translates to proactive behaviour with 55 percent expecting to increase investment in their business and 50 percent committing to hire more staff in the next year.

However, challenges pertaining to sourcing skilled employees was echoed loudly among our members, with nearly a third of participants identifying human resource issues as a primary constraint to growth. This was supported by frustrations with sometimes outdated education

– a unique and valuable tool for monitoring business
through the eyes of those leading the continent’s
EXPERT EYE 10 | Africa Outlook issue 81

systems which fail to sufficiently equip students for the needs of the job market, and the knock-on impact this has in finding the right people to hire, who are short in supply and therefore expensive to bring on board.

Positively, it appears that business leaders in these countries are taking the situation into their own hands. Most businesses reported plans to invest considerable amounts in training and upskilling for their employees to fill the gaps. They recognise that by doing so they will provide not only short-term value to the quality of the workforce, but long-term commercial gain.

How companies do good

Another key insight worth highlighting from the report is around perceptions of how businesses ‘do good’.

When asked about the primary way in which companies ‘do good’, across all countries, participants identified creating employment over options including engaging in corporate social

responsibility initiatives, paying taxes and creating wealth for shareholders. As a result, and perhaps surprisingly compared to perceptions in more developed countries, financial services, telecommunications and mining were all sectors cited as ‘doing good’. In the context of the countries surveyed, however, unemployment rates are high, secure work isn’t easily accessible and the higher-quality jobs, salaries and worker benefits these sectors can offer has a direct impact on people’s lives.

These results demonstrate that many of our members feel that by making the investment to grow their workforce and by providing good quality jobs, they are in turn making a positive contribution to wider societal good. They are acutely aware of the broader impact of their work outside the workplace and how long-term commercial growth can, in turn, support prosperity at a local, national and regional level.

Tracking this sentiment into 2020

Our aim now is to make The Africa List Business Barometer an annual occurrence, tracking the sentiments of our business leaders into 2020 and beyond.

With the upcoming Tanzanian and Ethiopian elections, the continued negotiation and implementation of the African continental free trade agreement and ongoing climate issues across the continent, the 2020s look set to bring about seismic changes for Africa.

With such a pivotal decade lying ahead, the Business Barometer will be a unique and valuable tool for monitoring business conditions through the eyes of those leading the continent’s private sector in some of its fastest growing countries. We look forward to sharing more of these exceptional leaders’ views, as they navigate risks and seize the considerable opportunities to bring about sustainable economic growth and prosperity.

Africa Outlook issue 81 | 11

EMPOWERED AND ENERGISED

Growing up in Africa in the 80s and 90s, it was clear to see how important it was and still is to provide people access to energy. It has a massive impact on welfare, health and economic prospects.

“I think this ambition, whether I knew it or not at the time, was always hardwired into my psyche, especially given the work my dad was doing. And technology has come a long way since then, so there was no doubt in my mind that studying mechanical engineering and following in my father’s footsteps would make for a very rewarding career.”

As a 16-year-old, Eghosa Oriaikhi Mabhena was in a considerable minority of young women in the UK. Moving to London from her home country in Nigeria, she was one of very few women determined to pursue a career in the engineering field.

And although today’s numbers are improving, the available figures are

Puma Energy Africa’s Eghosa

Oriaikhi Mabhena, recently named among the top 100 female CEOs in Africa, discusses her journey to the top of the industry

still stark. According to the Women’s Engineering Society, in 2018 just 25.4 percent of girls aged 16 to 18 in the UK would consider a career in engineering, compared to 51.9 percent of boys. In terms of employment, just 12.37 percent of all UK engineers are women.

Oriaikhi Mabhena, who has been in the industry for around two decades, is now CEO of Puma Energy’s Africa business, very much following in the footsteps of her father, who worked with Shell for almost 40 years.

“I have always had the urge to work internationally in order to acquire enough experience to truly make a dif-

ference in Africa one day,” she says. “My goal therefore was always to work for international companies that are constantly pushing the frontiers of technology, which is why I took the opportunity to work in the R&D department for Schlumberger in the UK in 2004.

“This drive continues to motivate me today on a daily basis – if my work is helping people to gain access to economic opportunities, education, healthcare and security in life, then it is a job well done.”

Oriaikhi Mabhena spent nine years at Schlumberger before working in several director positions at Baker Hughes until July 2019, when she joined Puma Energy as a member of the Executive Committee at the group level, moving back to Africa to head up the company’s regional division. Now living in Johannesburg, the opportunity to lead from the ground was too good to turn down.

“So, why Puma?” the CEO asks. “The short answer is I wanted to be closer to

12 | Africa Outlook issue 81 PUMA ENERGY AFRICA

the end customer, the people who we are impacting. I can feel the communities we are energising, whereas in London that was far more difficult to do, so this was the ideal opportunity to apply the experience and business acumen I have acquired.”

Since arriving, Oriaikhi Mabhena’s mission has been to build a One Puma One Africa team, a unit of Puma Energy which manages all business across the African continent.

This covers operations in 17 countries, her work ranging from corporate strategy, business development, government relations through to developing strategic relationships with other critical stakeholders, including industry bodies, and oil and gas operators, all the while placing the customer at the heart of Puma’s activities.

“I am very passionate about two things,” Oriaikhi Mabhena continues. “The first is about becoming a preferred place to work and be, and the second is executing our strategy and becoming a preferred supplier to our customers.

“Yes, of course we want to continue building value for our investors and shareholders, but we are also becoming an increasingly customer-centric business. The way to win is for customers to fall in love with the brand and identify with Puma. That’s how we deliver value and success.”

Such has been Oriaikhi Mabhena’s impact, she was recently named by Reset Global People in its Top 100 Women CEOs in Africa, ahead of the African Women CEOs Summit scheduled for July 2020 in Lagos.

Describing the award as extremely humbling, her initial reaction to finding out the news, perhaps surprisingly, was one of bewilderment.

“The day I found out was one of the toughest I have had since moving out to South Africa,” Oriaikhi Mabhena recalls. “I remember getting home at about eight o’clock and thinking wow this is tough, and my sister called telling me to get off the sofa and look

at the link she had sent me.

“I opened it and was confused – I didn’t know how I had been ranked and I hadn’t been contacted, but once I had a chance to take it in, I realised that from time to time you need a reminder that you are doing the right thing.

“It was validation that I was making a difference, and that the hard work is worth it. It is a tough time for the industry, which is in a period of transition to renewable and sustainable ways of thinking, so to be recognised like this shows we are on the right track. It has motivated me to keep pushing.”

men to open the doors and mentor us women to gain a seat at the table, until there are enough of us in the industry to support more women to advance to senior leadership and c-suite I am grateful to be standing on the shoulders of the women who have paved the way before me. I also recognise the people who have believed in me and invested in me personally and professionally along the way and till this day.

“However, regardless of gender, you need to be a talented individual who can deliver on goals and drive value, and we must prove that. I think once that value has been seen then there is a need for our industry to ask why that is the case – perhaps there are things women do differently to do with culture and leadership that could be attributed to gender.

“But that conversation only happens because result and value have been proven. If anything, it is a results and value-based conversation rather than a gender-based conversation. Once you have your seat at the table, you can then show the value of having a woman in the room.”

Oriaikhi Mabhena is also a prominent voice in the dialogue surrounding women’s participation in the energy industry.

Recent figures from catalyst.org show a promising trend but are striking nonetheless, the representation of women on the boards of power and utilities firms growing to 17 percent in 2019, up from just two percent five years earlier.

So, how has Oriaikhi Mabhena blazed a trail to the top of an industry whose leadership is still so male dominated?

“This is very close to my heart,” she says. “I subscribe to the UN’s HeForShe campaign as we need

Oriaikhi Mabhena also highlights how she has taken inspiration from other role models throughout her education and career to date, the CEO determined to continue imparting her own advice onto other women in the future. She likens this to the four-minute mile attitude, whereby others are inspired to go one better than her, remembering how she was inspired by another girl studying engineering in her school days.

“I want more women to stay in the industry and feel there is a long-term future for them,” she says, bringing the conversation to a close.

“My advice would be to have fun. Love what you are doing. At the end of the day, delivering value is much easier when you are enjoying yourself. Value is also about people as well as results, so my advice is to create value and have fun while doing it.”

Africa Outlook issue 81 | 13 LEADERSHIP
“MY ADVICE WOULD BE TO HAVE FUN. LOVE WHAT YOU ARE DOING”

THE IMPACT OF COVID-19 IN AFRICA

Businesses involving face-to-face interactions are closing around the world, as governments introduce quarantine measures to slow the spread of COVID-19, the highly infectious coronavirus that now grips the planet. It has spread to a growing number of countries in Sub-Saharan Africa (SSA), with over 40 nations having reported confirmed cases by mid-March. Given the virulence of the disease, it is set to spread across the entire region. South Africa has already imposed the most drastic restrictions, following its declaration of a ‘state of disaster’. Although SSA has lagged behind most other areas of the world with the onset of the infection, the weak state of most national healthcare systems – including a lack of capacity for screening, testing and quarantining suspected cases – are all factors which increase its vulnerability.

Set against this, SSA’s relatively low level of urbanisation, underdeveloped

We’re still in the midst of and coming to terms with the coronavirus that has led to unprecedented actions globally, not seen in many of our lifetimes. Here, the EIU looks at the facts and gives an outlook on how the situation could develop on the African continent

travel networks and youthful population will offer a limited degree of protection. The fact that SSA has a young population (over 60 percent of its citizens are under the age of 25) should therefore offer some degree of protection from the very worst consequences.

The overall economic impact on SSA is still unclear but could match, or exceed, that caused by the global financial crisis of 2008/09. Much will depend upon the duration of the global pandemic, although this is again shrouded in uncertainty. The threat to public health poses a particularly formidable challenge to SSA, given the region’s generally poor healthcare provision. Just two countries in SSA (South Africa and Senegal) have dedicated testing facilities. A major outbreak would overwhelm all of the health services in the region, as demonstrated by Italy’s experience. Kenya’s health

CORONAVIRUS 14 | Africa Outlook issue 81

facility assessment report for 2018/19, for example, indicates a low level of preparedness for infectious disease outbreaks. The WHO names Angola, Côte d’Ivoire, the Democratic Republic of Congo, Ethiopia, Ghana, Kenya, Mauritius, Nigeria, South Africa, Tanzania Uganda and Zambia as being particularly vulnerable, based on their high levels of contact with China. However, given the rapid global transmission of the virus – together with the robust measures taken by the Chinese authorities – Europe is now a much larger threat.

WHAT LIES AHEAD?

Other factors working in SSA’s favour are its relatively low levels of urbanisation and urban population densities, and limited internal travel networks, both within countries and between countries. This stands in sharp contrast to China and Europe, which have closely packed and largely urban populations, and modern and efficient

transport systems. This will help reduce the pace of transmission in SSA, and possibly limit the overall spread. Nonetheless, unlike China, which constructed a new hospital using prefabricated units in just 10 days, SSA will struggle to deal with the disease if it becomes entrenched. SSA’s main focus, therefore, will need to be on short-term containment, pending the possible arrival of a dedicated vaccine. However, as it is likely to take at least 12-18 months, SSA faces an extremely challenging period ahead. Quarantine measures, such as travel bans and trade restrictions, will inevitably have damaging effects on countries’ growth, with consumer and business sentiment badly undermined by the outbreak.

Governments throughout SSA will struggle to balance the need for long-term structural reforms with the challenge of preventing a major hit to citizens’ living standards as a result of the coronavirus pandemic.

Fiscal positions in some countries have improved in recent years on the back of higher tax revenues and greater expenditure constraint, but this situation is set to go into reverse in the near term. Lower global commodity prices (both oil and non-oil) will also depress the region’s export earnings, and populist policies will ensure that spending pressures remain high. The region’s generally fragile finances will limit the extent to which governments can attempt to cushion the economic impact of the pandemic. However, increased external support including the $50 billion that the IMF has made available through its rapid-disbursing emergency financing facilities could offer a modicum of relief.

GOVERNMENT INTERVENTION

African governments will try to introduce financial support measures to dampen the impact of the virus on their economies; in some countries this will include support for key sectors. Many African states still have scope to cut benchmark interest rates and adjust financial regulations to lower stubbornly high commercial lending rates and encourage private sector

ECONOMY Africa Outlook issue 81 | 15
‘AFRICAN GOVERNMENTS WILL TRY TO INTRODUCE FINANCIAL SUPPORT MEASURES TO DAMPEN THE IMPACT OF THE VIRUS ON THEIR ECONOMIES; IN SOME COUNTRIES THIS WILL INCLUDE SUPPORT FOR KEY SECTORS’

credit extension. Cash injections and bailouts would be even more effective in propping up companies, but national finances are already stretched in many African countries, despite years of fiscal consolidation, and falling tax revenues will add to the pressures. Recurring budget deficits, rapidly rising public debt and low financial buffers will force African governments to look carefully at the steps they can take to ease the economic crisis.

THE THREAT TO BUSINESS

Understandably, businesses and trade organisations are also calling for financial support from African governments to weather the storm. Their requests include access to low-cost or interest free loans, cash injections for critical enterprises, temporary waivers from various forms of taxation and financial help to protect workers’ incomes. In Europe and Asia, governments are already introducing financial support packages for the sector. However, African governments may struggle to find the funding to introduce similar packages, given the number of other priority sectors that will also need support African states are also keen to prop up key sectors that are deemed of national importance. For many countries, this includes the travel and tourism sector, which is among those hardest-hit by efforts to control the global spread of COVID-19. Tourism revenues have plummeted, and travel companies are incurring significant financial losses as a result of

travel restrictions and falling global demand. Businesses operating in the sector have responded by implementing business continuity plans, restructuring and refocussing business operations, cutting costs sharply and attempting to secure financial support in the hope of surviving the fall-out from the pandemic.

The threat to companies is immense, whether they are small- and medium-sized enterprises, large corporations or state-owned enterprises such as national airline carriers. Businesses are already reviewing workforce locations and working practices, repatriating staff and scrutinising their sickness and absence policies, particularly for those who need to self-isolate or to look after the elderly or children. Many companies are also allowing employees to work from home. However, remote working will be difficult given the nature of the tourism business, as well as the weakness of telecoms infrastructure, intermittent power supplies and a lack of IT equipment across parts of the region.

OTHER OPTIONS

Businesses will attempt to shore up their finances through measures such as staff redundancies and cost-cutting, renegotiating supplier contracts, delaying vendor payments, suspending planned investments, selling non-core assets and restructuring corporate debts. A sharp increase in business defaults, delinquencies, liquidations and restructuring are anticipated across a number of sectors during 2020 and possibly early 2021.

Under normal circumstances, many countries would turn to external financial support, especially official development assistance and concessional loans.

CORONAVIRUS
‘... THE FORECAST OF A RECOVERY IN 2021 IS DEPENDENT ON THE SUCCESS OF EFFORTS TO SUPPRESS THE PANDEMIC, WHICH REMAINS AN UNCERTAIN OUTCOME’

But with the rest of the world also facing economic pressures, such assistance may be difficult to secure. Other options include relaxing regulations and introducing measures to encourage employment and investment. However, such measures will need to wait until a recovery is in sight. Until then, companies will need to survive through a painful period of adjustment.

FUTURE FORECASTS

The Economist Intelligence Unit forecasts that real GDP growth in SSA will deteriorate in 2020 and, under a worse-case scenario, turn negative

before recovering in 2021. However, the forecast of a recovery in 2021 is dependent on the success of efforts to suppress the pandemic, which remains an uncertain outcome. Overall economic performance will continue to be heavily influenced by trends in the region’s two largest economies, South Africa and Nigeria, which jointly account for over one third of SSA’s aggregate GDP. Economic activity in both of these countries is set to weaken sharply. It is hoped that this will be partly offset by slightly better conditions in some of the continent’s smaller but more dynamic economies, including Kenya, Ethiopia and Côte

d’Ivoire. Furthermore, countries such as Ghana and Senegal, which have more diversified economies and have more supportive institutions, will witness average growth, helped by the resilience of domestic demand and some continuing inward investment. That said, the overall pace of economic expansion in SSA will remain well below recent historical levels (an annual average of 5.6 percent between 2000 and 2014). The mass failure of companies, both large and small, would deepen the looming global downturn and hinder the recovery that will eventually take place once the current pandemic is brought under control.

Africa Outlook issue 81 | 17 ECONOMY

CORONAVIRUS AND THE IMPACT ON TOURISM

It is a stark warning from the head of a body that represents the tourism trade in Africa.

ATTA® has around 700 members in Sub-Saharan Africa, split relatively evenly between buyers – such as tour operators – and suppliers (hotels, lodges, and transportation companies). As President of ATTA®, Vere Nicoll has detailed knowledge of how the coronavirus pandemic is impacting the African tourism industry, which is why I’ve contacted him.

“In the 21 countries we represent, the answer is ‘no’, because there are non-essential travel warnings in many African countries, and many more will be putting them on in the next day or so,” Vere Nicoll says. “You can go on holiday – the non-essential warning isn’t binding – but the likelihood is you won’t get into the country in question.

“We live in very challenging and uncharted waters at the moment,” says Nigel Vere Nicoll, President of the African Travel and Tourism Association (ATTA®), an organisation which he founded 25 years ago.

The questions I ask him make me feel as if we’re both characters in a dystopian novel (indeed, there’s been a boom in sales of books about epidemics, including Albert Camus’ The Plague).

First, I ask the industry veteran whether international travel to Africa is currently possible, or if all borders are currently closed.

“I was speaking to the British High Commission in Nairobi today, and I questioned why some countries are being given a non-essential travel warning when they have very few cases. The answer I got was because anyone visiting these countries will have to go immediately into self-isolation –they won’t be able to get anywhere, so there’s no point in them going.

“British, Americans and Europeans can’t travel – this is going to decimate the African market. It is extremely serious, and we have to help find ways to work around it.”

One of the biggest problems currently facing the industry is a

Nigel Vere Nicoll,
President
of the African Travel and Tourism
Association, gives his opinion on how the coronavirus will affect Africa’s tourism industry
18 | Africa Outlook issue 81 TOPICAL FOCUS

confusion over cancelled bookings. The UK government’s Foreign and Commonwealth Office offers three travel advisories – ‘green’ (you can go), ‘amber’ (all but essential travel) and ‘red’ (don’t go).

“The amber advisory is the trigger for the insurance industry to say ‘we’re not going to pay,’” Vere Nicoll explains. “And under EU package regulations, Article 12 paragraph 8, the tour operators have to refund their customers in full.

“These companies are fighting for survival. Many organisations, including ATTA®, are clubbing together to ask the government for temporary changes to the EU package restrictions with immediate effect. So, for Africa, we’re saying that tour operators shouldn’t be responsible for providing refunds if these costs aren’t covered by the suppliers, such as hotels.

“We also want a government-backed hardship fund to help tour operators, because tour operators are saying they don’t have the money to refund – they need their profits to pay their staff. If they have to refund everyone then they haven’t got anything left. Tour operators are also saying that they want to provide refunds in an alternative format, such as credit to be used over the next year. But that’s not the law.”

Convincing the UK government to make a short-term change to current measures is vital to the African tourism industry. This is because there are around 150 tour operators in the UK specialising in African travel, ranging from larger companies like TUI, to smaller boutique operators.

Vere Nicoll stresses that it’s important for buyers and suppliers in the tourism industry to collaborate in the upcoming months.

“We’ve shared the benefits in the past – let’s work together to share the burden. It’s not about rules and regulations, it’s about finding a solution,” he says.

I also ask about the effect corona-

virus will have on the wider African economy. Vere Nicoll tells me that there will be a massive impact, at least in the short term, as so many people in Africa are directly and indirectly employed in the tourism industry.

“Take one small boutique lodge in Africa with, say, 10 rooms,” he says. “They would employ about 50 people, but their extended suppliers – so, the person who does the laundry, or brings in the eggs every day – probably equates to around 1,000 extra people. If that lodge packs up, then 1,000 people have no income.”

in jeopardy, because if the Masai don’t get revenue then their livelihood is at stake.”

So, what is the solution? How can the African tourism industry keep going?

Vere Nicoll believes the answer lies in domestic tourism. As there are such low levels of COVID-19 within many African countries at the moment, travel is still possible.

“It’s not possible to cross borders within Africa, because they all have the same warning on, but it is possible to create domestic tourism,” he explains. “In fact, this is an amazing opportunity to create cashflow for survival with the local market. Kenya, for example, has a huge number of Europeans living within the country, who could become domestic tourists.”

Another saving grace is that it’s currently low season in East Africa, so tourism companies and hotels in that area anticipate having fewer customers this time of year. Some smaller safari lodges are even closed, ready to reopen for summer’s high season.

The ATTA® President further informs me that there are other, less obvious effects. In Kenya, for example, many conservancies have been established on land belonging to the Masai Mara peoples. They remove their grazing cattle from the land and lease it to organisations building safari lodges who conserve it for wildlife, the revenue from tourists providing an income to the Masai people.

“That model works fine until there’s a nonessential travel warning, and then no money is coming in and they can’t pay the Masai,” Vere Nicoll adds. “One my closest friends has just been to see one of the chiefs and explained the situation, telling him ‘we’re going to go on paying you out of reserve funds, but we don’t know how long this is sustainable for’.

“If this goes on for a long time, all this work on conservancies will be put

“What we are hoping is that tourism will recover in the English autumn and they’ll have the chance to get some bookings in the late season, leading up until Christmas,” Vere Nicoll says. “If it lasts any longer, we’re in a totally different ball game.”

However, he concludes our conversation on a note of optimism.

“The bottom line is that the tourism industry is very resilient. It always has been. We’ve been through many problems over the years, especially in East and Southern Africa, and we’ve always come through in the end.

“I think the industry will come out of it much stronger. A lot of relationships will be built up. And I think that once the coronavirus goes, if it’s a shortterm thing, then the industry will bounce back tremendously.”

In these uncertain times, it’s important to cling onto messages of hope like this.

Africa Outlook issue 81 | 19 TOURISM
“...WE’VE BEEN THROUGH MANY PROBLEMS OVER THE YEARS, ESPECIALLY IN EAST AND SOUTHERN AFRICA, AND WE’VE ALWAYS COME THROUGH IN THE END”

Tell us your story and we’ll tell the world.

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With content compiled by our experienced editorial team, complemented by an in-house design and production team ensuring delivery to the highest standards, we look to promote the latest in engaging news, industry trends and success stories from the length and breadth of Africa. We reach an audience of 185,000 people across the continent, bridging the full range of industrial sectors: agriculture, construction, energy & utilities, finance, food & drink, healthcare, manufacturing, mining & resources, oil & gas, retail, shipping & logistics, technology and travel & tourism.

In joining the leading industry heavyweights already enjoying the exposure we can provide, you can benefit from FREE coverage across both digital and print platforms, a FREE marketing brochure, extensive social media saturation, enhanced B2B networking opportunities, and a readymade forum to attract new investment and to grow your business.

To get involved, please contact Outlook Publishing’s Managing Director, Ben Weaver, who can provide further details on how to feature your company, for FREE, in one of our upcoming editions.

www.africaoutlookmag.com MURRAY & DICKSON CONSTRUCTION An inclusive, ‘grow with us’ approach to business NAS AIRPORT SERVICES Achieving the taste of excellence As the COVID-19 pandemic progresses, Ghana’s National Insurance Commission is working hard to provide some much needed peace of mind INSPIRING INSURANCE CONFIDENCE IN THE SPOTLIGHT: INTERVIEW WITH PUMA ENERGY AFRICA’S TOP 100 CEO, EGHOSA ORIAIKHI MABHENA FREE Marketing Opportunity www.africaoutlookmag.com/get-involved
22 | Africa Outlook issue 81 NATIONAL INSURANCE COMMISSION GHANA
Justice Ofori, Commissioner

Inspiring insurance confidence in the face of COVID-19

The Ghanaian insurance landscape has become more exciting as there is a new wind of change regarding our approach to the regulation, supervision and general operational standards of industry players.

“We are making insurance a matter of importance to people rather than a matter of compulsion, and have gathered adequate momentum in our exponential drive to achieving an improved insurance penetration rate. We are poised to stop at nothing with the resolve to ensuring that we make greater inroads within the insurance space.”

It’s been 18 months since I last spoke with Justice Ofori, Commissioner of Insurance at Ghana’s insurance regulatory body, and it’s refreshing to say a lot has changed for the better over the period.

The country’s insurance industry has experienced what can only be described as a drastic transformation, Ofori hinting to recent strides and achievements chalked up by the Commission in collaboration with other key stakeholders.

“We have created and continue to improve on an environment where insurance companies no longer

compete on pricing but on the quality of their services, which is remarkable,” he states. “We’ve been promoting a sound system, thus shaping the needed element of insurance – trust!”

Trust is everything when it comes to the financial services sector; it has to be earned and nurtured, and having recognised this NIC, is tirelessly pursuing an endless list of impactful initiatives that are helping to both improve industry performance and change public perceptions about insurance.

First, it recently announced a new, more flexible minimum capital requirement for all insurance companies – a move that has allowed industry players to improve their focus on and at the same time prioritise policyholders’ interests.

“We’ve done this by providing an adequate period within which regulated entities are expected to meet the minimum requirements with less stress,” Ofori states. “It is instructive to note that there seem to be quite a number of insurance companies who are unable to live up to expectations by way of efficiency and effectiveness, and this has been dealt with, instilling the much needed confidence in insurance.”

Ghana’s National Insurance Commission (NIC) is changing the negative perceptions around indemnity, ensuring providers are delivering meaningfully reliable services to policyholders and helping to develop a sense of trust as the underlying mission of every insurance entity in claims payment
Africa Outlook issue 81 | 23 FINANCE

TAKING STRIDES

What is also worthy of note is that the minimum capital requirement strategic announcement is just one of 10 transformational endeavours on NIC’s agenda.

The Motor Insurance Database (MID) is a second such initiative. Designed to substantially improve the national understanding of Ghana’s motor insurance market, it has greatly helped all stakeholders to better analyse policies and authenticities with the view to minimising fraud,

JUSTICE OFORI

particularly motoring insurance which forms over 40 percent of the portfolio of non-life underwriting companies.

“The introduction of MID in January 2020 was a huge leap for most non-life insurance companies and intermediaries,” the Commissioner comments. “Though it’s still in its early days yet, the interim statistics have shown a significant reduction in premium rate undercutting as well as minimising the menace of fake insurance,” the Commissioner he adds, striking a positive note about the future.

OLD MUTUAL

Digital innovation through the use of WhatsApp

Over the years, digital penetration has grown with most Ghanaians leveraging on the availability of platforms such as WhatsApp as their main channel of communication. This presents an opportunity for all players in the financial industry.

In response to this, Old Mutual Life Assurance Ghana, a leader in the insurance industry, introduced a ground-breaking and first of its kind distribution channel to the Ghanaian market – WhatsApp.

Mr Justice Ofori holds an International Executive Masters in Business Administration (MBA) and a Bachelor of Arts degree from the University of Ghana, his major being Political Science. He is a Fellow of the Chartered Insurance Institute of Ghana (CIIG) and a Chartered Insurance Professional of the Insurance Institute of Canada (CIP).

Ofori’s career in Insurance spans a period of about two decades having held managerial roles within the insurance space both locally and internationally. Prior to his current role as Commissioner of the NIC, he was the first Director of Ghana’s Premier Insurance Training Institution, the Ghana Insurance College having trained about 300 insurance practitioners who have attained the ACII status of the CII of the United Kingdom. With a wide range of experience in both teaching with remarkable pedagogical and managerial skills, it came as no surprise when he rose to the high office of the Commissioner of Insurance and has since been on top of issues, benchmarking global industry best practices.

The product, JustCover, was launched in December 2019, and the solution allows customers to buy and pay for local inter-city travel insurance on WhatsApp.

The second phase of this innovation is to introduce international travel on the same WhatsApp platform – this will provide accidental emergency cover for international travellers up to €300,000.

At Old Mutual, we believe the use of technology is a vital part of the future of insurance and we are excited that Old Mutual Ghana is showing the way, not only in Ghana or Africa, but across the world.

To purchase your insurance cover through WhatsApp, simply save the number 0242426455, send “hi” to the number on WhatsApp, answer a few questions and you are covered. In effect, we are using the technology of WhatsApp to provide ‘on-demand’ pay as you go insurance that is anytime and anywhere.

This innovative service is unique to Old Mutual and we are proud to be able to offer it to all our stakeholders.

WhatsApp: +233 (0) 24 242 6455

24 | Africa Outlook issue 81 NATIONAL INSURANCE COMMISSION GHANA
LEADERSHIP FOCUS

The development of a supervision manual for anti-money laundering, the deliverance of risk-based supervision legislation and implementation of the International Public Sector Accounting Standards (IPSAS), with the NIC having been one of the few state agencies to have implemented this globally ahead of the set deadline, are all additional ways in which the organisation has been improving international best practices worth emulating by other state agencies.

Further, the NIC has targeted the training of 10,000 insurance sales agents, having already trained over 2,000 as of December 2019. The Commission, through the Ghana Insurance College, is also upskilling the existing insurance sales agents in ethics and sound standard practices so that they will be credible ambassadors as opposed to the hitherto propagators of mis-selling that can occur. It is instructive to note that this is helping to grow the industry as well

as revamping its reputation.

Ofori explains: “We’re working assiduously on the new insurance bill to help the growth of the industry, bridge the gap in legislation and bolster international best practices in the Ghanaian insurance market. These include compulsory group life insurance, workmen’s compensation, professional indemnity, marine, commercial buildings and public liability insurances, among others.

“The Agricultural Insurance Policy has also been drafted and submitted to the government for consideration with the aid of the Alliance for Green Revolution in Africa (AGRA). This bill will provide a comprehensive regulatory framework on which a more structured regime will be hinged.”

A SHIFTING MINDSET

The outcome of all these efforts and others has been a rise in awareness, and with that awareness has come significant progress.

KEK Insurance Brokers Ltd.

KEK Insurance Brokers Ltd is an indigenous broking firm with substantial links, head-quartered in Accra, Ghana with subsidiaries in Sierra Leone and Liberia.

The company was registered as an Insurance broking firm in 1985, became market leaders in 1990 and has consistently maintained this lead on the basis of market share for 28 years and is still leading.

OUR AREAS OF OPERATIONS

• General insurance broking

• Life insurance broking

• Reinsurance broking

• Claims administration

• Risk management services

• Consultancy services www.kekgroup.net

StarLife

StarLife Assurance is a wholly Ghanaian-owned life insurance company and the third largest in Ghana.

As an award-winning company, with a passion for helping people identify the most secured wealth creation opportunities, we offer innovative life insurance products tailored to meet the unique market segments of the insuring public.

We pride ourselves on restoring people after life’s eventualities. With an enviable record of claims payment and presence in all regional and district capitals of Ghana, we continue to deliver value-added products and excellent service to our customers.

T +233 (0)302739600 www.starlifeassurance.com

NATIONAL INSURANCE COMMISSION GHANA 26 | Africa Outlook issue 81
GES-NIC Introduction of Basic Insurance in 2nd Cycle Institutions
Our professionals with the right expertise will design the most appropriate insurance program for your needs. General Insurance Broking Life Insurance Broking Reinsurance Broking Claims Management Risk Management Ghana’s leading Insurance broker since 1992 (+233) 302-764023 GA-153-5910 kek@kekinsurancegroup.com www.kekgroup.net FINANCE Africa Outlook issue 81 | 27

Ofori himself points to the life sector as one that picked up markedly, revealing that the informal sector, which accounts for over 80 percent of Ghana’s working population, is one that has particularly come to value the real benefits of insurance in general.

“Professionals in the informal sector, like market traders and artisans, have benefitted from the support of the German Development Corporation (GIZ) through micro and small-scale business clinics, which has engendered trust through the simplicity of language,” Ofori affirms. “When there is awareness, needs are created, and as needs are created, actions of patronage fall in line thus culminating in the growth of the sector.”

The digitalisation of insurance has also been wholly embraced by the local population, MID standing as a prime such example, and early movers in the market have made significant gains, generating an exponential increase in gross premiums in the first

two months after implementation.

“The MID has become more userfriendly as every motorist, driver, passenger or pedestrian with any type of mobile phone has the ability to check the authenticity of any vehicle,” Ofori adds.

Crucial to the success of each of these initiatives have been those organisations working in harmony with the NIC towards a common goal.

It has cultivated close relationships with the Driver and Vehicle Licensing Authority (DVLA), the Ghana National Fire Service (GNFS) and the Motor Traffic and Transport Department (MTTD) of the Ghana Police Service, each of these organisations helping to uphold the NIC’s mission of increasing public confidence in insurance in diverse ways.

Indeed, in the eyes of the Commissioner, these collaborations and others are not just crucial but also formidable pillars on which a solid insurance industry can be built.

Donewell Insurance

DICL has been offering general insurance services for the past 27 years in Ghana and has the clear objective of being your insurer of choice with respect to personal and commercial lines.

Our core values of Integrity, professionalism and stewardship are built around solid structures to ensure our policyholders get unbiased firstrate services.

Our insurance solutions are hinged on prompt payment of claims, financial strength and our appetite for risk is unmatched supported by world class reinsurers.

We value relationships with all our stakeholders and live by our slogan...

“If it must be done, it must be Donewell.”

www.donewellinsurance.com

GLICO Group

With a promise to cushion its customers for life, GLICO LIFE is poised to deliver value to all its stakeholders.

The company’s goal therefore is to meet customer expectations through a transformed digital experience.

It believes that digitalisation is an effective way to achieve greater customer satisfaction in today’s technologically advancing business world.

The use of technology in its business operations has therefore not only enhanced GLICO LIFE’s customer experience, but has improved and strengthened its relations with all its stakeholders.

www.glicolife.com

Justice Ofori speaks on the digitisation of insurance
28 | Africa Outlook issue 81 NATIONAL INSURANCE COMMISSION GHANA
Africa Outlook issue 81 | 29 FINANCE

“The NIC is also partnering with the Ghana Education Service (GES) in order to provide basic insurance education in second cycle institutions with a youth-focussed approach, the launch of which took place in January 2020,” he adds.

“Our relationships with donor agencies such as GIZ and AGRA similarly continue to yield the needed results.”

PURPOSED TO PROTECT

Without question, the work of NIC in partnership with each of these entities has begun to turn the tide on poor practices in Ghanaian insurance and also create awareness in the remotest parts of the country using empirical research results.

Regulated entities no longer have any choice but to fine tune their operations and ultimately deliver meaningful services to policyholders, thus developing the long-needed sense of trust and rising demand in the process.

The Training of Trainers (ToT)

seminars for Officers of the Police MTTD have commenced in earnest to ensure a successful enforcement of the MID in all 16 Regions of the Nation.

And the NIC itself has never been in a better position to make greater progress, as its footprint now spans seven geographical regions owing to a recent decentralisation policy of its supervision and regulatory mandates, resulting in the establishment of three additional offices in Koforidua, Cape Coast and the Sunyani areas, bringing the number outside Accra to seven.

“We’re no longer operating on a basis of ‘long-talk’ from Accra anymore,” Ofori states. “These offices are a fully-fledged part of NIC’s functions and deliver on supervision, regulation and take complaints and compensation issues very seriously as we draw closer to policyholders and prospective ones.”

Likewise, it has also established a research Unit in order to better assess industry performance, undertaking

various empirical and market research programmes with the view to further increasing the overall penetration rate.

Indeed, this is the organisation’s ultimate ambition moving forward. In the next year, it hopes to have created a 70 percent digitised national insurance system with marine cargo and hull insurance digitisation in the offing, awareness rates nearing 90 percent, and a more financially agile industry that will enhance confidence in insurance among members of the general public.

Why? Well, for Ofori, it comes down to the simple fact that insurance is the best way to protect finances, lives and businesses.

“The poor need insurance to protect the little they have and continue living as comfortably as possible, as do the rich,” he affirms. “It is risky to deceive ourselves into thinking that insurance premiums are high, rather than being motivated by the relief that will be there in the event of mishaps.

30 | Africa Outlook issue 81 NATIONAL INSURANCE COMMISSION GHANA
The NIC is working tirelessly to ensure trust in insurance is regained

ABOUT THE NIC

The National Insurance Commission was established under Insurance Law 1989 (PNDC Law 227) and now operates under Insurance Act 2006 (Act 724). The objective of the Commission is to ensure the effective administration, supervision, regulation and control of insurance businesses in Ghana.

NIC is mandated to perform a wide spectrum of functions including licensing of entities, setting of standards and facilitating the setting of codes for practitioners. The Commission is also mandated to approve rates of insurance premiums and commissions, provide a bureau for the resolution of complaints and arbitrate insurance claims when disputes arise.

Other responsibilities include the provision of recommendation to the sector Minister for policy formulation, supervision of practitioners, enforcement of compliance and public education. The development of strong relationships with regulators from other countries and international bodies such as the International Association of Insurance Supervisors (IAIS) and ensuring the conformity of practitioners to internationally accepted standards are also under its umbrella.

The enactment of Act 724 was a major milestone in the development of a robust insurance regulatory environment, empowering and granting adequate powers to the Commission. Together with several other initiatives in the past decade, this law and in turn the Commission provide a strong regulatory framework for Ghana’s insurance industry.

VISION: To be a model insurance services regulator in Africa.

MISSION: To be an effective custodian of public interests, ensuring financial soundness of insurance companies and prompt attention to grievances of policyholders and interested third parties. To act as the catalyst for the development, robust growth and prosperity of Ghana’s insurance industry.

CORE VALUES: Integrity, transparency, accountability, responsiveness, accessibility, innovation.

Vice-President of the Republic of Ghana, Alhaji Dr Mahamudu Bawumia, unveiling a new digitisation of insurance initiative

“If one perceives insurance as being expensive, then we should begin to think of the fact that there is a reason we leave our house doors locked before going to sleep, even if we’ve never experienced a break-in before.

“The global COVID-19 pandemic is the perfect example of why insurance is important. It’s crucial that we take the necessary safety precautions, washing our hands and using alcohol-based sanitisers to curb its spread, but for those affected by it and falling upon poor health or hardships, insurance can be there to help pick up the pieces.”

NATIONAL INSURANCE COMMISSION GHANA

Tel: +233 302 238300 / 238301 info@nicgh.org www.nicgh.org

Africa Outlook issue 81 | 31 FINANCE

Providing financial well-being and peace of mind, for a lifetime

Business is buoyant in Botswana right now.

Owing to sizeable fiscal buffers and prudent political, social and economic policies, the country has enjoyed strong growth for a number of years. Further, the Minister of Finance and Economic Development recently outlined the new government’s plans to transform the economy following the conclusion of the October 2019 national elections.

From ICT improvements to the creation of sustainable jobs, tackling corruption, enhancing education and training, the provision of quality healthcare and attracting both local and international investments, its commitments have the country poised for prosperity, and many industries are already thriving.

“The financial services industry in Botswana is evolving, with more players entering this space. There are currently four licensed retirement fund administrators compared to two in the previous year, and there has been some regulatory framework changes and amendments which will positively

impact our corporate and individual clients.,” Poloko Masitara, CEO of Alexander Forbes Botswana states.

It’s been little over 12 months since I last spoke with Masitara, the Chief Executive able to pick up with similar optimism to where we left off.

In the past year, Alexander Forbes Botswana has achieved a member under administration growth of 16 percent, retained 95 percent of its existing clients and changed its strategy to being advice-led and focussed on clients.

“We’ve also increased our marketing activities and visibility including our participation in industry events, planned and implemented the first annual Alexander Forbes wellness month, and rolled out our Life Gauge consulting tool that is focussed on retirement health, allowing us to demonstrate to clients the effect of different variables on future retirement prospects,” Masitara states.

“Furthermore, our use of the AFONLINE platform has intensified –another tool our members may use to monitor and improve their retirement

and investment planning through help with budgeting, saving, debt, tax, retirement, life and education.”

MANDATED TO MAKE A DIFFERENCE

To say that 2019 was a busy year for the company would be an understatement.

The entrance of new players and a rising awareness of the financial services sector has facilitated an injection of healthy competition in Botswana, and Alexander Forbes has been proactive, continuing to improve its offering and deliver on its value proposition of providing financial wellbeing and peace of mind through integrated and holistic advice.

“We’ve definitely seen our model shift to being an advice-led client centric,” Masitara comments.

“We’ve integrated all parts of our business, developed our client facing team with divisional experts, introduced new, innovative investments, products and enablement hub, and created a joint service platform including our fund

Alexander Forbes continues to impart financial and social benefit to the people of Botswana through an advice-led client-centric approach, and impactful social responsibility initiatives
Writer: Jonathan Dyble | Project Manager: Josh Mann
32 | Africa Outlook issue 81 ALEXANDER FORBES BOTSWANA

administration, technology and shared services.”

Aside from the aforementioned operational improvements, it has also expanded upon already extensive participation in corporate social responsibility initiatives, delivering meaningful benefits to disadvantaged communities and individuals in a multitude of ways.

Its support of the Dignity Foundation. A registered nonprofit organisation which provides sanitary pads, counselling for abuse,

education on health and legal rights, cancer preventative medical checks treatment for sexually transmitted diseases, and protection from sexual and violent abuse to girls nationwide.

Further, we partnered with the Dreams Alive Club on its Girl Talk Dreamer’s exchange expo, which is designed to inspire adolescent girls and young women in pursuing aspirational careers. “We partnered with Dreams Alive Club under the investment, accounting and financial services career hub and sponsored

FINANCE
Africa Outlook issue 81 | 33
“WE’VE DEFINITELY SEEN OUR MODEL SHIFTING FROM BEING PRODUCT CENTRIC TO CLIENT CENTRIC”

INTRODUCING ALEXANDER FORBES

The Alexander Forbes Group is a diversified financial services company with its head office in South Africa and a footprint in Africa and Europe. It specialises in employee benefits and investments, long term insurance, providing financial advice, risk brokerage, and administration solutions to individuals, companies, parastatals and union bodies.

For individuals, Alexander Forbes Botswana’s services include preserving retirement benefits, pre-retirement planning, pre-withdrawal planning and counselling, retirement planning, discretionary investments and wills and estate planning.

For businesses, its services span the following segments: employee benefits administration, The Alexander Forbes Trust, client services, beneficiary funds, asset consultants, financial management and consulting and actuarial services.

15 students attending the career expo. We’re proud to work with them. Their programmes are focussed on empowering young people in the greater Gaborone area by engaging them in community activities and workshops that allow interaction with knowledgeable industry specialists and influential role models,” Masitara reveals.

“They deliver positive recreational activities, facilitate career mentorships and develop discussions around communities and social issues that promote behavioural change.”

The Chief Executive herself also recently attended a ceremony at Mosikari Secondary School in central Botswana, where Alexander Forbes sponsored the gifts that were presented to the best performing students, many of which are from challenged backgrounds.

“We also sponsored the UB Foundation’s 19th annual fundraising gala dinner,” she adds. “The proceeds from this event are used to offer graduate scholarships to high performing Botswana students, 250 of which have been supported since its inception in 2004.”

MOVING WITH THE MARKET

Such initiatives reflect Alexander Forbes Botswana’s position as important contributor to socioeconomic empowerment in Botswana.

Standard Chartered Bank

Standard Chartered Bank is the oldest bank in Botswana, having started operations back in 1897.

A bank of many firsts in the country, Standard Chartered has been at the forefront of innovation and service to the people and government of Botswana.

In 2019, the Bank launched the first of its kind Digital Bank, allowing customers access to over 70 banking services and the option of opening bank accounts directly from their smartphones without ever having to set foot in a branch.

www.sc.com/bw

Through the latter stages of 2019 and early part of 2020, the company has both continued to deliver upon a vast and growing variety of empowerment initiatives and bring ever better products and services to the local populous, further advancing the country’s financial services industry.

But what of the remainder of the year? And beyond that?

“Right now, we’re working on rolling out a new customer-centric system and developing our administration system to further enhance our operational efficiency, capitalising on new capabilities such as automation of our processes,” Masitara muses, looking ahead.

“Technology is changing constantly in this market, and we recognise that we will continually have to respond in order to accommodate clients across all age bands and improve their individual experiences with us.”

34 | Africa Outlook issue 81 ALEXANDER FORBES BOTSWANA
“WE’VE INTEGRATED ALL PARTS OF OUR BUSINESS, DEVELOPED OUR CLIENT FACING TEAM WITH DIVISIONAL EXPERTS, INTRODUCED NEW, INNOVATIVE SOLUTIONS AND A PRODUCT ENABLEMENT HUB, AND CREATED A JOINT SERVICE PLATFORM INCLUDING OUR FUND ADMINISTRATION AND SHARED SERVICES”

Bank on the go with the SC Mobile Botswana App.

SC Mobile means easy, fast and secure banking from anywhere.

Download, activate and fund your account to enjoy 2GB data across all networks.

You will receive a Visa Gold Debit card delivered to a location of your choice. sc.com/ bw

Download the SC Mobile Botswana App today - experience the new way of banking.

For Alexander Forbes Botswana, the goals for the next 12 months will be much the same as before – to retain its existing client base, capitalise on new opportunities and diversify its products and services.

Adversity may need to be overcome in this period, particularly the local and global and economic impact of the COVID-19 which has resulted in governments across the world taking various measures to control its spread. Botswana has not been spared and the government has already responded with guidelines and restrictions to protect people from the virus. Alexander Forbes has also taken measures across the group and has implemented health protocols to safeguard both staff and clients

against the virus, as well as institute remote working in order to engage and service clients during this period.

Masitara admits the virus presents new challenges for Botswana and Alexander Forbes and fully supports these measures.

Notwithstanding the impact of COVID-19 on the Botswana economy, Masitara is cautiously optimistic about the future of the country.

“Presenting the proposed budget for 2020/21, the Minister of Finance and Economic Development explained that the government would respond to the need to propel the economy,” Masitara states, looking to the future.

ALEXANDER FORBES BOTSWANA

Tel: +267 3651900/01 enquiries.botswana@aforbes.com www.alexanderforbes.com

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Africa Outlook issue 81 | 35 FINANCE
36 | Africa Outlook issue 81 NAS AIRPORT SERVICES LTD
PHOTO: PATRICK SORDOILLET

Extra Mile Going the

NAS Airport Services Ltd is a company dedicated to delivering the highest quality inflight and corporate catering solutions and associated activities, forever going above and beyond when it comes to customer expectations
Africa Outlook issue 81 | 37 FOOD & DRINK
Writer: Jonathan Dyble | Project Manager: Matthew Selby

Ease is a greater threat to progress than hardship so keep moving, keep growing, keep learning. See you at work!”

For Stephane Lopez, this famous quote from Denzel Washington has become something of a personal mantra – that hard work pays off.

An individual with 24 years’ experience in inflight catering, cabin cleaning, maintenance, repair and operations (MRO) across Gabon, Equatorial Guinea, Seychelles, Reunion Island, French Antilles, the UAE and now Kenya, he today stands as the General Manager of NAS Airport Services Ltd – a company that’s become crucial to the operational success of over 30 international airlines at Jomo Kenyatta International Airport (JKIA) in Nairobi and Moi International Airport (MIA) in Mombasa.

Why? Well, mirroring the GM’s own philosophy, NAS demonstrates consistent dedication to delivering the highest quality products and services.

“We are proud to say that NAS is a one-stop shop for all of its customers,” Lopez states. “Our scope covers inflight catering, corporate catering, airport bars and restaurants, lounge operations, train services, laundry services, quality assurance services and laboratory services.

“What differentiates us is our people. Our team members are the greatest asset we have with their depth of knowledge, wide experience, trying mindset and progressive spirit and dedication. They remain agile and focussed on a daily basis in order to exceed our customers’ expectations.

“Going the extra mile is very much part of our DNA.”

The who, what and where of NAS

NAS Airport Services Ltd functions as a fully integrated catering provision, loading and off-loading, laundry, bonded storage and dry goods uplift services provider, operating out of Nairobi and Mombasa.

Its flagship inflight catering division is one of the longestrunning and most formidable catering specialists in the world. It has a daily meal capacity of roughly 15,000 units delivered by a workforce of 950 highly trained professionals, all working under purpose-built, super hygienic and fully equipped facilities.

The company prides itself on a deep-rooted understanding of its customers’ businesses, tailoring its services to the specific and individual requirements of each airline, private enterprise, hospital and school that it serves in the aim of remaining the most valued inflight and corporate catering service company on the continent.

Its corporate catering customers include Associated Battery Manufacturers, Chloride Exide, The Standard Group, British American Tobacco Kenya, Unilever, NAS Plastics, Kenchic, Nestle Kenya, James Finlay and Kenya Petroleum Refineries, while its inflight catering perimeter has the opportunity to serve approximately 20 airlines from around the world.

MISSION: To deliver treasures of quality products and services.

VISION: To achieve the taste of excellence.

38 | Africa Outlook issue 81 NAS AIRPORT SERVICES LTD
Giles Pommier, Executive Chef

COMMITTED TO KENYA

Indeed, the GM is full of admiration for his staff in upholding such a unique, purposeful ethos.

On a quarterly basis, the company duly celebrates its teams’ efforts during the internal Double Baggers Award Ceremony where those who have contributed significantly are recognised and credited. Likewise, it also hosts a monthly NAS Top Table Award Ceremony that holds a similar purpose.

“Top Table is also used to promote our employees who go above and beyond their duties,” Lopez explains. “Teamwork, customer focus, anticipation, communication, a never give up and can-do attitude and respect are key for us.”

Awards are not the only way in which staff are rewarded. In addition,

NAS develops team building events in the aim of cultivating a unified spirit and invests heavily in both internal and external training resources to support personal progression plans.

“I am also a true believer of promoting from within our organisation,” Lopez comments. “As managers, we have a mandate to continue building NAS for tomorrow by helping each and every employee realise their full potential in whatever way we can.”

The company’s partners and suppliers are also viewed in a similarly important light. Having originally been founded in 1949, NAS has developed a number of long standing, fruitful collaborations with various enterprises over decades, the GM pointing to these relationships as vital.

“IN NAS, N IS FOR NURTURING OUR PEOPLE AND GROWING OUR POTENTIAL, A IS FOR ANTICIPATING OUR CUSTOMERS’ EXPECTATIONS AND STAYING AGILE, AND S IS FOR SUPPLYING SAFE FOOD IN LINE WITH STRICT REGULATIONS”
- STEPHANE LOPEZ, GENERAL MANAGER
NAS AIRPORT SERVICES LTD 40 | Africa Outlook issue 81
The NAS Airport Services team

Aquamist is a key market player as one of the leading bottlers and suppliers of mineral water in kenya. our range of products include still and sparkling mineral water (in glass and plastic bottles), flavoured water, ice tea and frutz ready to drink juices. We have been in operation since 1998 and currently employ a workforce of 350. Our staff have enabled us to sustain the rapidly growing demand for our products, whilst maintaining a high level of quality products and exceptional service. Our fleet of 44 delivery trucks enables us to deliver to customers in major towns across the country.

Aquamist Mineral Water is a naturally balanced mineral water, sourced from the edge of the Great Rift Valley. Our water is bottled under stringent conditions, using state of the art, fully automated equipment. We are ISO 22000:2005 certified by Bureau Veritas and conform to all national and international standards as mineral water. We are proud to have been voted the Most Preferred Water in a Glass Bottle, the Most Preferred Flavoured Water and the Most Preferred Emerging Beverage Brand for our brand Ice Tea at the Kenya Beverage Excellence Awards in 2019.

Aquamist Mineral Water (still and sparkling) is readily available in glass bottles in 375ml, 500ml and 750ml. The 500ml size is a new addition to our range of glass bottles. We have also switched from plastic to metal caps, providing our customers with a more eco-friendly bottle. Using a glass bottle with an aluminium cap reduces your carbon footprint, as glass is endlessly recyclable and aluminium can be recycled and reused without losing its properties. Our glass bottles are heat sterilised between use, ensuring our water is clean, fresh and pure.

As a Kenyan company, we decided to introduce our country’s majestic animals to our new look and are striving to make our country more environmentally friendly for future generations. Aquamist has participated in various corporate social responsibility projects over the years. Almost a million Kenya Shillings was raised for the United Nations Malaria Campaign and 12,000 litres of water donated towards famine relief in Northern Kenya. More recently, we partnered with Tropic Air 10 to 4 Mountain Bike Challenge to raise money for the Mount Kenya Trust. We recently donated mineral water to the Kenya Red Cross to support the Government of Kenya in their efforts to fight the COVID-19 pandemic.

Our partnership with NAS Airport services

Aquamist Limited began its partnership with NAS Airport Services in 2013. We are proud to be the preferred supplier of branded mineral water to the leading in-flight catering company in Kenya. We extend our heartiest congratulations to NAS on its 70th anniversary and look forward to a continued partnership during the coming years.

T +254 20 444 7244 | E info@aquamistwater.com | www.aquamistwater.com

“Our partners and suppliers are essential,” he affirms. “I am proud to say that NAS Catering Services provides meals both on flights and in any canteen that are prepared, cooked and delivered using fresh products, and that is largely thanks to the work of these entities given the farms to fork concept.

“As a local operator, part of our mission is to work with local suppliers and partners, and 95 percent of all

our catering products are currently produced in Kenya. Our suppliers are chosen from an extensive auditing process based on the quality and dependability of their goods which are stored at our cold storage facilities which comply with the strictest international hygiene controls including ISO 22000 – 2018 certification.”

This commitment is further reflected in NAS’s extensive corporate social responsibility efforts, notably its flagship greenhouse projects.

Previously, the company found a number of children’s homes becoming reliant upon its food supplies and sought to change this, empowering them across Kenya with the development of greenhouses in which these facilities may grow their own produce.

“The plan is to help at least one children’s home in each of Kenya’s 47 counties,” Lopez says. “We still have a lot of work to, but we have so far opened eight greenhouses that have helped to transform food security for these kids.”

Norda industries Ltd

Norda Industries Ltd was founded in 2008 with a mission to create growth and opportunity in East Africa by providing consumers with quality, innovative and outstanding products.

Over the years we have continuously come up with a wide range of popular snacks with Urban Bites potato crisps being the key brand that brought NAS and Norda together as key partners.

Norda’s partnership journey with NAS began on December 4, 2014 and has flourished over the years.

We continue to supply NAS with Urban Bites range available in seven exciting flavours.

www.norda.co.ke

Ramesh has made his name supplying NAS with fresh fruit and vegetables that makes everything look, smell, taste better for over 22 years.

He takes pride in sourcing fruit and vegetables from the finest growers across Kenya for the world’s airlines.

New Muthaiga Green Grocers Ltd Operated with panache by Ramesh Ruparel, New Muthaiga Green Grocers Ltd is noted for the quality of its produce.
T +254 728926222 E jaymeernish@gmail.com
NAS AIRPORT SERVICES LTD 42 | Africa Outlook issue 81
PHOTO: PATRICK SORDOILLET
Grab a pack of the best quality potato crisps! High-class greengrocers, supplying NAS for 22 years NEW MUTHAIGA GREEN GROCERS P.O.Box 63117 - 00619, Nairobi, Kenya Tel: +254 728926222 Email: jaymeernish@gmail.com Celebrating 50 years! FOOD & DRINK Africa Outlook issue 81 | 43

CONTINUING THE FIGHT

Beyond the meaningful relationships it builds with both its own people, external partners and local communities, NAS likewise is making great strides in the way of operational improvement.

From a process standpoint, it conforms to world-class standards, investing in integrated software to guarantee accuracy and real-time analysis capabilities on every client order and maximise efficiency through its supply chain, scheduling, audits and checklists.

What’s more, this software can be tweaked to be compatible with its client airliners’ own administration platforms – another demonstration of NAS’s willingness to go above and beyond when it comes to exceeding customer expectations.

“We’re always looking to benefit equipment or processes,” Lopez states. “We’re well known for the development of the ‘sous-vide’ technique, where food is vacuum sealed, with our state-of-the-art in-house equipment that includes blast chillers, ovens and packing machines and a research and development kitchen

lead by our culinary director for Africa.

“Likewise, owing to the fact that we’re part of SERVAIR – GateGroup, we’ve implemented a brand-new enterprise resource planning system which enables us to have full traceability of our perimeters.”

All these investments will be crucial in enabling NAS to meet its goals moving forward – to grow, protect and consolidate the company, its customers, team members, partners and shareholders.

Given the current global climate, this won’t be without its challenges. The implications of coronavirus will undoubtedly take their toll on economies and companies around the world, NAS undoubtedly set to take a hit owing to rising travel restrictions.

Yet despite the cause for concern, the GM still expresses positivity for the future as our conversation comes to a close, pointing to the pillars upon which the organisation is built as strong enough to withstand the impacts.

“Our environment is in perpetual change with difficult times as now with the current COVID-19 outbreak around the world,” he affirms. “But we

will remain extremely focussed on our mission in order to take our organisation and our teams to the next level. We’re confident that as one we have a great chance of celebrating 80, 90, 100 years and more.

“We’re always excited to work with different people, engage in different projects, learn, share, discover new best practices and different ways of working, thinking and living.

“I would like to thank all our NAS pioneers and team members for their continued fight for our company and customers. As we say here, Pamoja Tusonge Mbele – together we are moving!”

Tel: +254 (0)20 6972000 www.nascat.com

NAS AIRPORT SERVICES LTD
NAS AIRPORT SERVICES LTD 44 | Africa Outlook issue 81
PHOTO: PATRICK SORDOILLET
We have all your packaging materials in place www.vistapackaging.co.ke Managed Packaging Solutions Packaging Application Analysis Sustainability Solutions Custom Packaging Design Kitting & Assembly Mugoya Vegetable Shop Ltd. Grocers, suppliers and exporters of fresh fruit and vegetables City Park Drive, Off Limuru Road. P.O. Box 1279-00621, Nairobi, Kenya. info@souschefltd.com | www.souschefltd.com Sous Chef is a manufacturer of a variety of frozen food products. It also has an outside catering arm and a Caribbean restaurant within its portfolio. FOOD & DRINK Africa Outlook issue 81 | 45

FOR THE LOVE OF NATURE

The wet faces of relaxed hippos glisten in the morning sun along the waterways of the Luangwa River. Elephants wade through the nearby marshland, playfully jetting water from their trunks as they pause to bathe. A leopard lies sprawled across a thick branch of the riverbank’s dense forest, enjoying a snooze after a hard-earned hunt.

A gunshot is heard, the serenity spoiled.

During the 1980s, poaching tragically became a necessity for many locals living in eastern Zambia. Poor farming practices had led to

exhausted soils and dwindling crop yields, resulting in food shortages and rising poverty.

Thousands of animals were killed and their habitats decimated as communities went in search of food and new fertile farmland in order to survive. The situation had reached a crisis point as poverty and conservation became embroiled in a constant, worsening conflict.

“I had completed some of my PhD work in Zambia,” recalls Dale Lewis, CEO and Founder of Community Markets for Conservation (COMACO). “I was based in a beautiful, wild, natural

COMACO is a not-for-profit built to incentivise conservation, improve social security and turn the tide on poaching and deforestation. We speak with Dale Lewis, the man behind its philanthropic model
Jonathan Dyble Project Manager: Matthew Selby
46 | Africa Outlook issue 81 COMACO

area, but witnessed some horrific scenes of elephant poaching.

“Beyond law enforcement tactics, it didn’t seem like anyone was trying to find a viable solution to the problem. I couldn’t put that out of my mind and decided to return to the country with a limited research budget to see what I could do.

“I ate the local food and lived in the local villages alongside local people – I was the barefoot biologist that rode a bicycle. And it was that daily association with these communities that helped me to realise that their problems were intertwined with those of the elephants.

“People did not know how to farm productively or sustainably because nobody had taught them, and hunger became their motivation to go out and

hunt. When I conducted a survey and saw how widespread this was, I decided to hang up my binoculars and start off in a new direction with COMACO.”

TURNING THE TIDE

In the 15 years since Lewis’s epiphany, COMACO has become a crucial player helping to turn the tide on poaching and deforestation.

A not-for-profit enterprise incentivising sustainable farming and conservation, it has educated 200,000 smallholders and potential poachers in sustainable crop cultivation practices, helping them to dramatically increase crop yields.

Through these learnings, eastern Zambian communities are now able to grow enough nutrient-rich food crops to not only feed their families but also sell any surplus to COMACO for a fair price on the premise that they act as stewards of the land. In doing so, the organisation has rotated the once incompatible relationship between people and nature into one of harmonious co-dependency.

“We’re focussed on getting farmers to understand their soils,” Lewis explains.

“Crop rotations are important in keeping fields healthy year after year, while planting legume crops such as soy and ground nuts help to naturally enhance soil nutrition. In dealing with drought, we also teach our farmers to prepare fields with special techniques designed to retain moisture for months at a time.”

Additionally, COMACO’s network of smallholders pursue agroforestry practices where nitrogen-fixing trees are planted together with crops. Last year alone, they planted 36 million Gliricidia sepium trees that not only fix nitrogen and other important nutrients in depleted soils, but also naturally repel pests and remove the need for harmful chemicals in maintaining crop cycles.

COMACO BY THE NUMBERS 179,000 SMALL-SCALE FARMER PARTNERS $4.5 MILLION ANNUAL CONTRIBUTION TO ZAMBIA’S ECONOMY 450 PERCENT RISE IN SMALLHOLDER ANNUAL INCOMES SINCE INCEPTION 78 PERCENT RISE IN SMALLHOLDER FOOD SECURITY 100-200 PERCENT RISE IN MAIZE YIELDS 1,769 POACHERS TRANSFORMED 1.45 MILLION HECTARES CONSERVATION AREA
Dale Lewis
Africa Outlook issue 81 | 47 FOOD & DRINK

PRODUCTS WITH PURPOSE

COMACO’s It’s Wild! products provide thousands of families with a reliable income source and remove the economic driver for illegal wildlife poaching and deforestation. Its range includes:

HONEY: Made by wild bees in the verdant forests of Luangwa Valley, it is 100 percent natural and pesticide free.

YUMMY SOY: A high-fibre, protein-rich health food that contains all your daily nutrients in one serving, crafted to World Health Organization specifications that can be used by low-income families to meet daily nutritional needs.

CHAMA RICE: Gluten-, pesticideand fertiliser-free rice containing important vitamins including B1 and B3. Comes in white and brown varieties.

BEANS: Packed with fibre, potassium, iron and daily vitamins. Comes in both red and white varieties.

PEANUT BUTTER: Voted the third best food product in all of Zambia in 2017 and has been awarded an official Mark of Quality for its quality control against aflatoxins. Sold in three varieties: smooth, crunchy and with moringa.

WILD MUSHROOMS: A wonderfully rich tasting local wild mushroom that is dry processed and cooks well in many different dishes.

SOY PIECES: A processed soybean product that has the texture of meat, flavoured as beef, chicken or natural. A low cost healthy replacement to a meat diet.

Unquestionably, the social impact it has delivered through these efforts has been immense.

Since starting out, the organisation has managed to bolster food security of the individuals it works with from under 50 percent secure to 86 percent secure, triple maize output in some cases and raise the average real earnings of households from $79 a year to over $400 per year.

“We recognise $400 is still not big money,” Lewis comments. “It’s not our goal to make everyone rich – it’s our goal to make communities wealthier by keeping families’ income secure, and we’ve seen a real transformation. Soils are healthier than before, allowing people to be sedentary, and when they’re sedentary they aren’t cutting down trees to find new farmland and they’re more likely to accumulate assets helpful to their livelihood.

“This is our point of difference. The world needs its natural ecosystems healthy, breathing and alive, and there are a lot of smallholder farmers in Zambia living on large, ecologically valuable pieces of land that support incredible biodiversity.

“The hope is that our brand, It’s Wild!, tells this message – that we’re preserving the country by working with those people who can protect the landscape and create healthy, high quality food products at the same time, so that humans and animals may live side by side.”

THE EVOLVING COMACO ECOSYSTEM

Indeed, as COMACO grows and blossoms, so too does the circular economy that surrounds it.

Of late, the organisation has invested in its flagship Chipata plant, located in Zambia’s Eastern Province. It now deshells groundnuts in-house to create a biowaste product that is compacted, turned into briquettes and used as the fuel powering its dry processing of fruits and other products.

Meanwhile, acting as a leading

Equatorial Food Ingredients

Equatorial Food Ingredients, established in 1994, is a key supplier to COMACO, the Zambian Government and the Zambian manufacturing sector in it’s entirety. It champions the quality of its products, which are made in a safe environment.

The company believes in development and self-sufficiency and serves as an ambassador for manufacturers who play a vital role in local economies, activity which has seen Equatorial Food Ingredients recognised with multiple awards.

It is located in Lusaka, the capital of Zambia, and will continue to generate employment opportunities for the Zambian people.

www.capefoodingredients.com

proponent of forest conservation, COMACO pays an annual conservation dividend to communities that demonstrate a commitment to agreed conservation standards.

It partners with communities to reduce CO2 emissions and earn carbon credits which provide local people with an additional income, this initiative having started with nine chiefdoms as part of the World Bank’s BioCarbon Fund pilot project in 2015.

The initial carbon verification produced 228,000 tonnes of CO2 emission reductions, a figure that saw COMACO pay out $490,000 across these nine communities. Local leaders consulted with their community members to decide how to invest this money and decided on projects including boreholes, maize mills, oil expellers for local supplies of cooking oil, livestock and breeding pens, grain storage facilities, trucks for collecting farm commodities, and operational and salary support for local forest guards.

48 | Africa Outlook issue 81 COMACO
EQUATORIAL FOOD INGREDIENTS LTD In partnership with INGREDIENTS for Food and Beverage Manufacturers INCLUDING Beverages, Bakery, Dairy, Confectionery, Sauces, Flavours, Sweeteners, Stabilisers, Thickeners, Colours, Vitamins and Minerals, Cocoa Powder Etc. Email: lea@efi.co.zm | www.capefoodingredients.co.za Nobody fits quicker than a kwik-fit fitter! UNSTOLIC RESOURCES LTD Tyres Service Batteries Alignment +260 211 840094 +260 977 641111 sales@unstolic.com craigc@kwikfitmw.com www.unstolic.com Plot 696, Kalambo Road P.O. Box 31527, Lusaka Africa Outlook issue 81 | 49 FOOD & DRINK

committed to. I’m honoured to call myself their CEO – I might have the fancy title, but they deserve the credit.”

Cooperation with external parties is also a key strength of COMACO, including both philanthropic bodies and impact investors. Lewis reveals: “We would not have gotten this far without the faith and support these partners have placed in our model.

“Some of our investors, for example, provide us with concessionary rates, meaning our financial pressures are slightly lifted, which ensures that we give our farmers a good price. Too often, rural people are exploited. From their point of view, they work very hard and don’t get much money, so why

Five years on, COMACO has since grown this initiative to involve 38 chiefdoms, helping to restore 1.4 million hectares of local forests in the process.

“Through large scale adoption of agroforestry and the reduced need to cut trees for more farmland by local farmers, forests have begun to recover,” explains Lewis, “and It’s Wild! is helping these farmers see the value of forest protection with products such as honey, wild mushrooms and even carbon credits.

Women’s empowerment is another important priority for COMACO. Currently, 52 percent of all smallholders that have joined its network are women as well as a growing number who serve on the executive committees of farmer cooperatives, providing a balanced and inclusive system of equal opportunities.

“And we’ve also started assisting our farmers in obtaining relevant certifications so that our products may be classified as organic,” Lewis adds.

“We’re excited to see them expressing interest in improving the quality of their produce, as they genuinely believe that It’s Wild! products are theirs and COMACO is their company that helps to tell their story to the consumer. And so they should.”

Above: Mwape Chibale extension posing with some surrendered guns from ex-poachers who are being trained in conservation farming.

Right: Ex-poachers selling rice to COMACO in Chitambo District, Central Province, Zambia

CHANGING THE STATUS QUO

The organisation’s own staff embrace this same outlook, nurturing the its overall purpose to support small-scale farmers through a range of markets to achieve conservation outcomes.

Indeed, the CEO expresses his pride and admiration for the efforts of his almost entirely Zambian team, pointing to this workforce as the real engine orchestrating COMACO’s amazing work.

“I couldn’t forget my team, not can I think them enough,” he affirms.

“I’m consistently blown away by the way in which they look after each other, support each other, and work long hours to further our mission and protect the farmers that we’re

should they then compromise themselves by prioritising the environment?

“We have been able to change this dynamic with the help of our partners. These are not entities that are motivated by money or greed. Rather, they share our desire to see socioeconomic and environmental progress in Africa.”

CREATING A FUTURE FOR ALL

Beyond investors, retailers have had a similarly major impact on COMACO’s trajectory, often going the extra mile to help showcase its products and raise brand awareness with specialised in-store displays and other methods of marketing.

And the retail domain is inciting further anticipation from the Chief Exec

50 | Africa Outlook issue 81 COMACO

as he casts an eye over the future. He explains: “We’re receiving interest in our products from retailers in the US, UK, Germany, Belgium, South Africa and Botswana.

“Why is this exciting? Ultimately it means more demand for the quality products our farmers are helping to produce and more farmers we can support with better paying markets. It all works well for the farmer and conservation.”

Long term, COMACO’s vision is to become one of the largest producers of organic food products in the world – an objective that is entirely feasible given the stature of its expanding network.

That said, numerous challenges do remain. Logistically, COMACO’s model requires it to organise and train farmers and their leaders, develop communication systems, maintain quality control and minimise waste – processes that take on increasing complexity but are critical for its value chains.

“We have tried to use every technical solution we can find to keep our costs down,” Lewis comments. “The challenge from here is to become even smarter about the way in which we manage our costs while ensuring quality and nutrition is upheld.

“If we continue on this track then I do believe that, with our farmer and

conservation story behind us, we will realise our massive potential in the marketplace. At the end of the day and for me personally, at least on a philosophical and spiritual level, it is symbolically about the elephant –do we want to share our world with these wild animals and the habitats they need? Can we find a way to live together as one?

“I think we’ve proven that it is possible. Our hope now is that as people discover our brand, our story and what we stand for, despite being a young company, we will make this vision a reality for Africa.”

COMACO

Tel: +26 097 158 3282 comaco@itswild.org www.itswild.org

Africa Outlook issue 81 | 51 FOOD & DRINK
Top: COMACO staff at its Agri Show Display where it won first prize. Above: Beekeeping in a community conservation area, Eastern Province

FURTHER TAKING FOOD

Twiga Foods has become a critical part of Kenya’s economy, having helped to formalise the country’s informal agriculture sector by backing 17,000 smallholder farmers

Agriculture is more than just farming and food. It is jobs, security, economy, society and development, and for Africa it is, therefore, crucial.

The sector has a massive continental footprint, with more than 60 percent of the population in the Sub-Saharan region working as smallholder farmers and 23 percent of regional GDP being derived from agrarian activities. Agriculture is the continent’s greatest employer, helping individuals from all backgrounds to overcome poverty and enjoy healthy, active working lives.

To only look at the positives, however, would be naïve. According to McKinsey, Africa in fact has the potential to produce two, maybe even three times more cereals and grains than current output, while similar increases might also be seen in horticultural crops and livestock. Indeed, with this in mind, the potential for organisations to make a meaningful impact is tremendous.

Enter Twiga Foods, a company mandated to turn the tide on lagging

agricultural productivity and output in Kenya by assisting smallholder farmers and tackling issues at source.

The company’s model is simple. Local farmers opt to sign up to its network, at which point Twiga visits and assesses those prospecting farms and adds them to its system should they be successful. After that, it will issue a purchase order to each individual smallholder, indicate a date of harvest, and then harvest and weigh its farmers’ produce before paying them.

All produce is gathered at the company’s collection centres where it is then sent to its centralised packhouse for processing, grading and dispatch across more than 80 sales routes serving Nairobi, Machakos and Thika.

Where do these routes lead? Directly to the doorsteps of Twiga’s network of vendors that undergo a similar sign up process. They also opt in and receive a visit from a company representative before they are registered into its system where they are able to place orders and receive these deliveries.

52 | Africa Outlook issue 81 TWIGA FOODS
Africa Outlook issue 81 | 53 FOOD & DRINK

Through this offering, Twiga has become a critical function in the grassroots economy. Its farmers benefit from a guaranteed market, transparent pricing, farming advice and access to credit from the organisation’s partners, and the vendors are able to enjoy fair prices, quality produce, free delivery, assured food safety, easy tracking and, likewise, access to credit.

“Since 2014, Twiga has been bridging gaps in food and market security through an organised platform for an efficient, fair, transparent and formal marketplace,” the company states.

“Today, we source quality fresh and processed food from thousands

of farmers and food manufacturers and deliver from our pack houses to thousands of vendors at prices fair to everyone.”

CHANGING THE STATUS QUO

This seed to shelf model has become the backbone of more than 17,000 Kenyan smallholders and 8,000 national vendors, its success down to the efforts of these parties alongside its dedicated 400-strong in-house workforce of sourcing, sales, logistics, finance, technology, administrative and HR professionals.

These contributions are not all, however.

FROM FARM TO MARKET

Below is an overview of Twiga’s banana handling process, where the company helps to handle, process and ripen bananas in accordance with strict food quality control guidelines.

HARVESTING: The company harvests bananas while they are mature but still green. They are then de-handed, cleaned with antifungals and sodium hypochlorite, and packing into crates ready for transportation to its warehouses.

PROCESSING: Once received, the bananas are weighed and graded, with each bunch checked to confirm that it meets Twiga’s stringent quality standards.

NATURAL RIPENING: Here, the bananas are carefully placed in crates and loaded into modern state-of-the-art cooling rooms that control the natural ripening process. This usually takes between five and eight days, with the company’s cold storage facility able to accommodate up to 500 tonnes of bananas.

DISPATCH: Once ready for market, the bananas are rechecked to reconfirm Twiga’s quality standards, packed into crates according to its customers’ orders and dispatched to market.

DELIVERY: The organisation delivers ready for market bananas at its customers’ doorsteps for no additional cost.

TWIGA FOODS 54 | Africa Outlook issue 81
www.cdl.co.ke Career Directions Ltd (CDL) is a proactive Human Resource Management & Consultancy Firm with 13 years experience in providing a complete range of Human Resource solutions. We deliver the highest level of professionalism and expertise and have an extensive client base in Africa: spanning . Kenya, Uganda, Tanzania, Rwanda, Ethiopia, Southern Sudan, Zambia, Nigeria & Ghana We have amassed a substantial portfolio of clients serving industries such as: hospitality, telecommunications, manufacturing, logistics, transport, ICT & commercial, oil & gas, media & communications, and commercial. TALK TO US: Email: info@cdl.co.ke Call: +254 726 583 140 Outsourced Labour Recruitment HR Consultancy Training Sales Outsourcing Payroll Management Psychometric & Personality Testing PROVIDING HUMAN RESOURCE FOR 13 YEARS S O L U T I O N S

External parties outside of the Twiga network have also been crucial in assisting the company’s rise, the International Finance Corporation, TLcom Capital and Creadev being three such entities that have supported its growth, pledging $23.75 million in investment during a recent Series B funding round that concluded in October 2019.

“This funding enables us to invest in our technology and organization to tackle the inefficiencies in Africa’s domestic food production and distribution ecosystems; a $300 billion informal and fragmented market that is estimated to grow to $1 trillion by 2030,” Peter Njono, the company’s CEO, said at the time.

“With the support of our investors, we are developing technology-driven commercial solutions and cooperating with existing industry players to solve the challenge of food security in Africa.”

OPIC and Alpha Mundi also invested $6 million during this funding round, which has likewise helped to continue the development of Twiga’s proprietary technology and logistics assets, used to create a convenient and reliable alternative to current farm-tomarket processes, as well as laying the foundations for its planned expansion into other African countries.

“Food security is a key priority for the Kenyan government and Twiga Foods is playing a major role in achieving this,” stated Professor Hamadi Boga, Principal Secretary of the Kenya State Department for Crop Development and Agricultural Research in the wake of the announcement.

“As our population grows and urbanisation continues, it is essential that we can provide access to affordable food for as many Kenyans as possible, as well as support and promote sustainable agriculture. We commend them on their impact so

far, as well as their ability to attract investment to Kenya.”

Indeed, the company’s contributions and overall impact cannot be overstated.

Not only is Twiga helping to bring fresh produce such as bananas, potatoes, onions, tomatoes and watermelons to the population, as well as a range of processed foods including rice, maize flour, cooking oil, milk, juice, sugar and snacks, it has also helped to reduce supply chain inefficiencies.

Its investment in materials handling, for example, has helped to reduce the level of food waste by up to 70 percent compared to market averages.

With Sub-Saharan Africa’s population set to double over the next 30 years, access to reliable and affordable food sources for consumers and guaranteed markets for farmers are essential for effective food distribution. Given this context, Twiga will continue to be a crucial entity in the future.

TWIGA FOODS 56 | Africa Outlook issue 81
“WITH THE SUPPORT OF OUR INVESTORS, WE ARE DEVELOPING TECHNOLOGY-DRIVEN COMMERCIAL SOLUTIONS AND COOPERATING WITH EXISTING INDUSTRY PLAYERS TO SOLVE THE CHALLENGE OF FOOD SECURITY IN AFRICA”

HUMAN RESOURCE OUTSOURCING

About Career Directions Ltd (CDL)

CDL is a proactive Human Resource Consultancy & Management Firm with over 13 years’ experience in providing a complete range of human resource solutions. We deliver unrivalled professionalism and expertise in human resource practice and have an extensive client base across Africa. We are headquartered in Kenya and with branches in Uganda, Tanzania, Rwanda, Ethiopia, Zambia, Nigeria, Ghana and Southern Sudan.

We serve large, medium and small sized organisations. Our extensive client base cuts across a wide range of sectors that include telco, hospitality, manufacturing, banking, healthcare, retail & distribution, transport and logistics, aviation, ICT, oil and gas, media and communications, commercial and more.

We have a wide range of services that include: Labour outsourcing: CDL offers the simplicity of an end-to-end service including onboarding, payroll, HR and benefits administration, labour law compliance, performance management, disciplinary process, separation and day-to-day employee management.

Recruitment: We partner with you to achieve flexible, cost effective and objective hiring solutions that meet your recruitment needs.

Payroll management: Our finance and payroll experts understand the often complex needs of payroll and will manage multiple payments, taxes and insurances on your behalf and ensure your organisation complies to labour laws and regulations.

Training programmes: We believe that when done properly, training can improve employee productivity thereby increasing revenue and profits while decreasing costs, waste, and inefficiencies.

Sales outsourcing: We develop customised retail sales programmes that stimulate trial and brand awareness while increasing sales, profitability and consumer retention.

Psychometric and personality testing: Our talent assessment solutions support organisations in the selection, performance management and development of staff.

CDL and Twiga Foods Ltd partnership

CDL has proudly been in partnership with Twiga foods Ltd for labour outsourcing services. We recruit and manage different cadres of staff both long term and short term. Our service is centered around planning, recruitment and reference checks, staff contracting, attendance management, payroll management, performance management, leave management, management of work-related injuries, disciplinary management and day to day HR administration.

Benefits of outsourcing with CDL

• Improved organisational efficiency and productivity

• Streamlined human resource operations

• Greater capacity for organisations to focus on core business activities

• Cost efficiencies as a result of streamlining your company’s cashflow, reduced overhead costs that usually come with running back-end operations, reduced cost of hiring, avoiding penalties from noncompliance

• Risk management: We stay abreast of various aspects of tax and labour employment laws and regulations and ensure your organisation is compliant

Outsourcing enables a company to focus on activities with the most strategic value while saving money and benefiting from the specialised expertise of HR outsourcing firms.

Career Directions Ltd | www.cdl.co.ke | E info@cdl.co.ke | T +254(0)726 583140
58 | Africa Outlook issue 81 GREENDOOR GROUP

May 2019 was a landmark month in the scheme of Africa’s heightening development ambitions.

It marked the inauguration of the African Continental Free Trade Area (AfCFTA), the world’s largest free trade area since the WTO, that promises to accentuate the opportunities made available by the region’s rapidly expanding infrastructure, growing supply chains, broadening distribution networks and advancing mobility.

Indeed, owing to the continent’s

widespread emphasis on economic integration, these opportunities are now plentiful. According to the IMF, intraregional imports as a share of total imports has almost tripled in the past two decades, now valued at approximately $100 billion.

And that number is expected rise further against the backdrop of the AfCFTA, meaning the future for local logistics players like Greendoor Group looks incredibly bright.

“Logistics is ever changing; no day is ever the same,” explains Richard Hall,

the company’s Chief Operating Officer. “It certainly keeps us on our toes. Back when we first started going into the DRC in 2008, there were long stretches of dirt and even one climb where trucks had to be towed by a wrecker.

“Fast forward 12 years, and the roads are now mostly tarred. Challenges remain of course, but trade has become much easier.”

Founded in 2006 by Ken Hall (Richard’s father), Greendoor Group set out to bridge the gap in crossborder transport, meeting the rising

BRIDGING THE GAP

Greendoor Group is not merely helping to meet the demand for logistics across the rapidly advancing African continent – it is doing so by delivering the highest quality transport services which always put the customer first

Africa Outlook issue 81 | 59 SUPPLY CHAIN
Writer: Jonathan Dyble | Project Manager: Lewis Bush

demand for reliable service providers.

And it has been succeeding in its mission. Today, the firm specialises in the transport of containerised and breakbulk cargo between Durban, South Africa and Zimbabwe, Zambia, the Katanga Province of the DRC and beyond.

“We have always concentrated on the southern parts of the DRC with Kolwezi being our northernmost reach there,” the COO adds. “In Zambia, meanwhile, we are focused on the Copperbelt Province and in the last couple of years have travelled further northwest into Solwezi, as well as exploring Angola and Mozambique at the request of our clients.”

GOING THE EXTRA MILE

It is this latter point that speaks volumes of Greendoor Group’s culture.

By Hall’s own admission, the company prides itself on being a client-focused enterprise, delivering on promises and backing the growth of its customers.

“We have always worked on personal touches and relationships, trying to understand what makes our clients tick,” he affirms. “We consider it highly important to know exactly what is expected of us before making any promises so that we are able to deliver the highest levels of satisfaction across every endeavour.”

Such is not only achieved through the company’s staunch values that include high ethical standards, integrity, reliability and proactive, open communication, but likewise because of its state-of-the-art fleet.

Each truck is fitted with 24-hour real time satellite tracking technologies, providing overriding visibility to the benefit of Greendoor Group’s own operational efficiency and for the peace of mind of its customers. Further, the company offers a range of other value-added solutions including customs entries, bureau inspection valuation assessment control assistance, and warehousing and packaging

350 VEHICLES AND COUNTING

Here, Richard Hall tells the story of Greendoor Group, mapping out the company’s humble beginnings and its meteoric rise in the 12 years since joining.

“My brother and I had spent some time outside of South Africa studying and travelling, and decided it was best to get back to help our family grow the business,” he explains. “My father has always been involved in transport in some form or another, so we were always surrounded by trucks growing up.

“Soon after this in late 2007, my father was lucky enough to have a chance coffee meeting with Mike Koch. After the meeting and some further chats Mike became keen to get involved and took a stake in the company, and with his financial backing we were able to purchase our first vehicles in early 2008 – 20 International 9800s. We continued to grow the fleet consistently through the recession and by 2015 had in excess of 150 vehicles pulling both triaxles and super-links.

“Since then the fleet has multiplied, and we now run just over 350 vehicles along the North South Corridor.”

at its strategically located sites in Johannesburg, Lusaka and Chingola.

As this expansive portfolio suggests, fleet and technological improvements are forever on the company’s radar, striding to find new ways in which

its service offering can be bolstered. And alongside the aforementioned, Hall is able to point to a number of other alternative, growth-related investments which are currently being pursued.

GREENDOOR GROUP 60 | Africa Outlook issue 81

Clearing

Forwarding Clearing Documentation

Sea Freight

A

Jervis Zimba, President of the Zambia National Farmers’ Union (ZNFU), the owners of the event said this year’s event at GART is expected to bring more than 20 000 visitors, over 220 local and international exhibitors, including international pavilions from Germany, Italy, UK

Cargo Services are leaders in the industry and 40 years of experience has cultivated a strong solid working relationship with our various service providers. We are customs and EDI accredited with a team of highly experienced staff. Cargo Services continually strives to exceed our clients’ expectations and embrace all projects with ease and professionalism, ensuring that we become a trusted partner for generations to come.

Last year, the event featured several interna tional pavilions again and a VIP attendance that included three cabinet ministers and the Zam bian President Edgar Lungu who visited the event for the fourth year in a row.

Zimba said the 6th event is expected to lever age on the huge success of last year’s Agritech Expo, despite numerous challenges experi enced which include the economic crunch and cholera and FMD outbreaks.

Agritech Expo Zambia will feature industry fea tured zones - livestock zone, live crop trials, machinery and equipment demos, construction park, 4x4 test track, energy park, internation al pavilions, indoor expo tent, irrigation zone, centre pivot display, agriteach training work shops, vip large scale farmers agenda, sme zone, business zone, aquaculture showcase and nethouse showcase

gritech Expo anticipates luring more visitors to its annual agriculture jamboree slated for April.and Zimbabwe.

In addition 3500 VIP and large scale farmers are expected to grace the event.

Air Freight 10 Zambian Agribusiness Magazine | April - June 2019 www.agribusinesszambia.com

New features for 2019 include livestock demos and workshops, live planting demos, more ag riteach workshop zones and industry support.

“Agritech Expo Zambia 2019 promises more agro technology and innovation advancements as the event continues to unveil the future for our agriculture,” said Zimba.

Agritech Expo celebrates 6th birthday General News The Forwarders Where Service Counts Freight Forwarding & Customs Clearing Agent • Air, Sea & Road Freight Logistics • Customs Brokers • Worldwide Service, Worldwide Support • RIT/Transit Bonds available through Zimbabwe & Zambia www.hill-delamain.co.zm Hill + Delamain ZAMBIA: 7216 Kachidza Road, Lusaka T: +260 211 286480 F: +260 211 286484 E: logistics@hdcargo.co.zm ZIMBABWE: 22 Simon Mazorodze Road, Southerton, Harare T: +263-4-757721/629/860 F: +263-4-757658 E: logistics@hdcargo.co.zw - Local Expertise with Global Reach - Operating in Zambia for over 50 years MAIL: phakalane@kwanokeng.com PHONE: (+267) 396 0283/6 FAX: (+267) 396 0287 WEBSITE: www.kwanokengoil.com HEAD OFFICE AT PLOT 68291 PHAKALANE GABORONE OPEN 365 DAYS SUPPLY CHAIN Africa Outlook issue 81 | 61

Road Freight
Agritech Expo Zambia is owned by the Zambia National Farmers Union (ZNFU) and is organ ised by Spintelligent, leading Cape Town-based trade exhibition and conference organiser, and the African office of Clarion Events Ltd, based in the UK.

ONE GROUP THREE OFFERINGS

Greendoor Group is made up of two divisions and a very close sister company in the form of Hauloads Zambia, each offering tailored, first-class logistics services for an array of different clientele. These include:

CARGO 2 CONGO: Established to service the growing demand for transport into and out of the DRC and Zambia, it today accounts for 200 vehicles including super-links, 15-metre triaxles and specialised units such as step deck and low deck trucks.

KA GO 2 GO: Specialises in running consolidated express loads to Zambia, a niche market that has grown rapidly off the back of support from mining companies and their suppliers in Lusaka and the Copperbelt Province. Vehicles range from one-tonne to 32-tonne trucks.

HAULOADS ZAMBIA: The first established distribution centre and checkpoint for vehicles in the Greendoor Group, delivering to Zambia and further afield in the DRC. This division comprises 40 heavy haulage rigs currently but with the hope of expanding this fleet to approximately 100 in the near future, that provide the company with greater flexibility by enabling collection and delivery both in Zambia itself and to and from all other neighbouring countries. There are also a fleet of 150 Acid tankers that run between Zambia and the DRC.

“We are hoping to purchase land in the Zambia Copperbelt in order to better service the region and use this as a springboard into the DRC,” he states. “Launching an extensive servicing centre for our fleet is also in our sights as it continues to grow, as is the installation of solar panels at our South African and Zambian depots to reduce reliance on the grid.”

WORKING COLLABORATIVELY TOWARDS RENEWED GOALS

These are undeniably sound ambitions given the current trajectory of the regional economy. However, they are not only focus of the company’s current efforts.

Much like its emphasis on

developing and maintaining great relationships with its customers, Greendoor Group equally ensures it maintains similarly fruitful ties with its staff and suppliers.

Hall explains: “Our workforce is very important to us, as our whole ethos is built around our family business structure. The environment here is a happy and exciting one – our low employee turnover indicates that people enjoy working here and are motivated to come and deliver great services every day.

“Likewise, being a transporter, we rely heavily on our relationships with supply chain companies. That includes those who cater to relevant mines in both Zambia and the DRC, as

62 | Africa Outlook issue 81 GREENDOOR GROUP

well as our own suppliers and service providers.”

Staying on the subject of important parties, talk then turns to a fourth critical facet for the company – catering to the needs of the communities in which Greendoor Group operates.

While the company’s leading logistics have helped to transform many a business in the region, a major part of its remit also includes contributing to the local landscape in wider ways, a recent example of this approach being its sponsorship of the Zambian Golf Open.

“We have been able to give back to the people of Kitwe via this sponsorship,” Hall states, “something that we want to continue to do moving forward.”

But what of the organisation’s other ambitions for 2020 and beyond?

First and foremost, its primary priority will be consolidating Greendoor Group’s position as the flagship cross-border transport company servicing South Africa. Alongside this, however, broadening the firm’s horizons into new markets is a particularly promising prospect and one which the COO is able to express buoyant optimism about.

“As I mentioned, we are very keen on furthering our footprint in Angola and Mozambique,” he reiterates.

“In the DRC meanwhile, the consensus is that exports will likely double in 2020 – a boom that will obviously be very positive for us and we hope that

a fair share of it will exit through South Africa.

“Overall, we have always had a very positive outlook from year to year and I think that attitude has brought us to where we are today. It is very easy to sit and complain about anything in life, but a lot harder to go out and make a real difference.”

GREENDOOR GROUP

Tel: +27 11 316 5003

info@greendoorlogistics.co.za www.greendoorlogistics.co.za

Africa Outlook issue 81 | 63 SUPPLY CHAIN

AFRICAN BUSINESS Built to Back

Africa – a land brimming with untapped potential. While roughly 16 percent of the global population can be found on the continent, current figures suggest its 54 countries account for just two percent of global trade.

But 2020 marks a new decade and a new era.

Africa is on the brink of transition; its leaders having realised the continent’s potential and the crucial role it can play in the global commodity supply chain. Of course, the success of this transition will be highly dependent on the continued development of transport infrastructure, investment into which is on the up.

GlobalData forecasts that $69 billion will be spent across 448 large-scale

With a fully integrated approach to freight, Reload Logistics is inspiring integration and driving development across borders with its best-inclass service offering
64 | Africa Outlook issue 81 RELOAD LOGISTICS
Writer: Jonathan Dyble | Project Manager: Lewis Bush

African transport construction projects during 2020, a rise on the $47.1 billion spent in 2019. Combined, these projects will create an additional 75,297 kilometres of newly constructed roads, bridges and railways upon completion – a web of physical links that will pave the way for regional trade to blossom.

“Logistics in Africa is super exciting with many challenges and many opportunities,” explains Ruud Walgaard, CEO of Reload Logistics – one company for which the future looks incredibly bright given the transport-focussed emphasis enrolling across the region.

“It is for sure more exciting here than in Europe or elsewhere. The industry outlook in Southern Africa, for example,

is very positive, with new mining projects coming online and bolstering the flow of goods within the region.”

So, where does Reload Logistics fit into this thriving sector?

As a matter of fact, it is already recognised as a major contributor to the Southern African supply chain. With strategic footprints in each of the region’s key markets, it handles and moves more than one million tonnes of essential resources a year, from minerals to metals to soft commodities, helping to galvanise local businesses and motivate trade and transactions.

“We are a key player in offering complete logistics services to facilitate the link between supply and demand for various traders and essential commodities such as minerals, metals,

tobacco, cotton, sugar, fertiliser and soft commodities,” Walgaard affirms.

“We provide full logistics services to international customers from landlocked countries to ports and subsequently any place in the world.

“Our brand’s success is built on offering solid, reliable and diversified services to our clients. We operate in countries that move quickly and constantly and are therefore always close to the operation to anticipate and react to new situations with speed and efficiency.”

RELOAD’S FIVE CORE PILLARS

Indeed, Reload Logistics is a company with an esteemed value-added offering, the company priding itself on five key points of difference.

Africa Outlook issue 81 | 65 SUPPLY CHAIN

First is its ongoing investment into an unrivalled physical asset base that includes 12 warehouses situated in key strategic locations across Southern Africa. In total, these facilities comprise 700,000 square metres of warehousing space, backed up by a fleet of 320 trucks.

UNRAVELLING RELOAD LOGISTICS

Launched in 2007, Reload Logistics has grown into one of the leading providers of logistics solutions in the Southern Africa region.

In touch with the needs of Africa’s terrain and its infrastructural challenges, the company has become well versed in handling soft and hard commodities and associated products, able to support a range of businesses with break bulk and containerised cargo including vessels, barges, trucks and rail.

SERVICES: Warehousing, international freight-forwarding, customs clearing and consulting, transport solutions and project cargo.

AIM: To become the foremost logistics service provider in the region, striving to meet the needs of a diverse client base by always exceeding expectations and maintaining well-renowned ethical standards.

MISSION: To revolutionise the logistics industry in Southern Africa by delivering breakthrough value to clients, and combining ingenuity, expertise and experience to offer seamless services that demonstrably improve business efficiency.

“As a freight forwarder, Reload Logistics has invested massively in heavy infrastructure which allows the group to ensure service delivery without sole reliance on third parties,” Waalgaard explains. “Reload Group’s suppliers and key partners complement its asset base which increases our overall capabilities.

“Owing to our ongoing growth we are expanding our network, but those suppliers who have supported Reload Logistics from the beginning have a special place in our hearts.”

Through these foundations comes a second key differentiator in the form of efficient management spanning the entire logistics chain, from critical transport and warehousing activities to clearing operations and shipping. Here, Maxime Budan, the company’s Chief Financial Officer, enters the conversation and highlights a range of capabilities.

“Our trucks can transport commodities from mine to warehouse to port; we’re able to store, sample, reweigh, bag and handle goods in our warehouses; our clearing allows us to fast track any cargo, trucks or trains across borders; and we provide sea freight services from ports anywhere in the world,” he reveals.

Likewise, having local managers on the ground in Ndola, Dar Es Salaam, Lubumbashi, Johannesburg, Beira and Durban ensures the company is always close to the client and therefore able to respond to and solve any issues in an efficient and rapid manner.

“This is very much appreciated by our customers. It gives them comfort that their cargo is in safe hands at all times during transit from source to the final destination,” Budan comments, the CFO then pointing to Reload Logistics’ focus on legal compliance and its staff as the final two pillars upon which it has built its success.

“Fourthly, we provide our services in a legal and compliant framework which has allowed the group to attract international companies to the region. This was not the case previously, as companies did not receive enough comfort in terms of the overall framework of operation,” Walgaard states.

“And finally, we invest in our people, providing them with the best tools to grow, perform and in turn support the company’s upward trajectory.”

This latter segment is particularly close to the hearts of both Walgaard and Budan.

Their goal is to invest in local people in particular, Reload Logistics’

66 | Africa Outlook issue 81 RELOAD LOGISTICS

A journey of a thousand loads

One innovative partnership

At Standard Bank we believe that Africa means business. Our partnership with Reload Logistic is a shining example of this approach. Through their journey to foster and facilitate asset-based logistics, we have provided innovative support which has bolstered their growth. We are looking forward to seeing how our on-the-ground expertise and local insights will sustain their glowing reputation across Southern Africa and beyond.

standardbank.co.za/cib

Authorised financial services and registered credit provider (NCRCP15). The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06) Corporate and
Investment Banking

employees sent on training courses and given the opportunity to cross borders, gaining international exposure and an understanding of varying logistics-related nuances of multiple Southern African countries.

“We are proud to see specialists from Malawi, South Africa, Tanzania and Mozambique working in our Zambian warehouse,” Walgaard affirms. “We consider our people to be our greatest and most important asset. They excel in looking after our clients’ daily needs.”

CHAMPIONING CSR

In each of the communities that it operates, Reload Logistics actively engages in corporate social responsibility initiatives. In Zambia, the company has been supporting an orphanage and school for mentally handicapped children, for example.

Its CSR strategy is built on three elements:

SUSTAINABLE DEVELOPMENT

Taking a global lead towards ecofriendly and efficient transport solutions while contributing to the sustainable development of local communities.

RESPECT FOR THE ENVIRONMENT

Committed to protecting the environment through continuous improvement in its business processes, management and services, striving to reduce the impact of its work.

HEALTH AND SAFETY

Ensuring every employee is well-trained, supported and equipped, with the belief that a healthy and positive team spirit fosters customer confidence and enhances business reputation.

REALISING THE POTENTIAL

Moving forward, this list of key strategic urban areas will only continue to expand as Reload Logistics further broadens and consolidates its reach across the Southern Africa region.

Right now, the company is in the process of establishing itself in Angola and Namibia, its overall warehouse facilities footprint expected to reach one million square metres by the end of 2020.

“We’re optimistic that this enlargement will complete our presence,” Budan comments, “and we’re also looking at extending our fleet.

“Reputation and reliability are vital to logistics in Africa. Our clients, mainly commodity traders and mining houses, appreciate our commitment to speed, quality and accuracy – characteristics that are already upheld by our existing assets, but ones that will be bolstered by these new efforts.”

Unquestionably, the coming year will be a busy one for Reload Logistics as it continues to sustain its one-stop logistics shop status and growing platform that is renowned for worldclass service. And likewise, the general industry backdrop in which it is operating is similarly promising.

Not only is the continent forecast to receive roughly $69 billion in transport infrastructure investments this year, but plans to build or expand five major ports (in Barra do Danda and Lobito

in Angola, Lekki in Nigeria, Musoma in Tanzania and Lamu in Kenya) are also in the works, set to drastically improve Africa’s connections with the rest of the world.

What’s more, the Africa Continental Free Trade Agreement (AfCFTA) implemented last year has already begun to transform intercontinental trade, drawing an influx of multinational firms that are beginning to recognise the long-term prospects offered by an African operation.

These developments stand to benefit Reload Logistics dramatically moving forward, the company perfectly positioned to contribute to the realisation of Africa’s true potential.

“We are certainly looking to the future,” the Chief Executive expresses as our conversation comes to a close. “Markets are growing and attracting new players from Europe and Asia. Yet it is our solid investments, our people and our dynamism that gives me confidence that we will not only maintain but grow our market share.”

RELOAD LOGISTICS

Tel: +260 212 615 966 contact@reloadlogistics.com www.reloadlogistics.com

68 | Africa Outlook issue 81 RELOAD LOGISTICS
Clearspan Structures (Pty) Ltd +27 11 823 2402/3/ 4 cspjhb@clearspan.co.za www.clearspan.co.za Jeff Montjoie +27 83 625 5232 jmo@clearspan.co.za Mike Adair +27 82 707 4890 ma@clearspan.co.za Address 3 Fobian Street Driefontein 85-Ir Boksburg Gauteng South Africa Developing quality industrialised buildings, warehousing, factories, office and steel-framed buildings throughout Sub-Saharan Africa for over the last 40 Years. FOR MORE INFORMATION VISIT: www.outlookpublishing.com/creative-services Outlook Creative Services Outlook Publishing’s awardwinning in-house team is now utilising its extensive production skills to offer a full and bespoke range of editorial, design and marketing services via its new Outlook Creative Services division. Africa Outlook issue 81 | 69 SUPPLY CHAIN

Mauritius Mobilising

How Metro Express Limited is delivering the country’s first ever light rail system, a gamechanging new network which is already opening up opportunities for Mauritian people
70 | Africa Outlook issue 81 METRO EXPRESS LIMITED
Writer: Tom Wadlow | Project Manager: Lewis Bush

There is no doubt that Mauritius represents a tremendous economic success story since independence in 1968.

Now an upper-middle income country, the island state is home to 1.3 million people who continue to drive strong GDP growth, 2018 recording a 3.8 percent increase with a similar level of expansion expected to be confirmed for 2019.

Indeed, Mauritius is well on its way to becoming a high-income nation as

it transitions to a knowledge-based, innovation-driven economy, although such rapid progression has brought some less desirable side effects.

Once of the most visible is the proliferation of cars on the island’s road network. Today there are around 550,000, almost one for every two citizens on what is a relatively small landmass, and the figure is rising by around five percent a year.

And there are economic costs too, with traffic congestion expected to Dr Das Mootanah, CEO

Africa Outlook issue 81 | 71 SUPPLY CHAIN

cost the Mauritian economy around MUR 10 billion ($260 million) annually by 2030.

The solution? Encourage more citizens to make use of alternative, sustainable forms of transport.

This is where Metro Express comes in. Under construction since 2017, it is the country’s first ever light rail transit (LRT) system and marks the first investment in train travel since the old lines were closed in the 1960s. Spanning 26 kilometres, once finished it will connect major urban centres from Curepipe to Port Louis via 19 new stations, six of which serving as multimodal transit hubs.

“This absolutely is a gamechanger for Mauritius,” says Dr Das Mootanah, CEO of Metro Express Limited (MEL), the organisation spearheading the project.

“There are numerous challenges facing Mauritius which we are tackling. As well as congestion, we have also seen increasing numbers of

road traffic accidents, about 150 on average annually, so building alternative modes of transport is a matter of public safety.

“The development will also have an aggregate effect on the economy. By building infrastructure and transport hubs through the five major towns, it will act as a catalyst for incremental growth and generate opportunities for entrepreneurs as well as job seekers.

“Mass transit systems also have inherent social benefits. People will have a chance to get out of their cars and have a conversation while they are travelling either individually, in groups or with their families. In fact, we have already observed this on our trains, especially on weekends, where young families often go out in the evening for leisure from Rose Hill to Port Louis.”

As Dr Mootanah indicates, Metro Express is

Franki Africa

Franki and the Fast Track

In what is referred to as one of the most challenging railway line projects in Mauritius, Frankipile Mauritius International, a Keller company, has successfully completed the foundations for various structures along the 26-kilometre route.

The Mauritius light rail transit system, including 19 stations, is now nearing completion. The new line runs from Curepipe to Immigration Square in Port Louis and passes through densely urbanised areas of Vacoas, Rose Hill and Quatre Bornes making access to the various sites and piling positions very awkward and difficult. The location of the Metro Express running parallel to inner city roads added to the technical and logistical challenges.

Metro Express Ltd appointed leading construction company Larsen and Toubro for the design and construction of the Metro Express. FMI were originally commissioned by L&T to conduct the geotechnical investigation along the 26-kilometre route. This investigation consisted of 257 boreholes to assess the underlying geotechnical conditions.

The results from the geotechnical investigation revealed that a piled foundation solution would be most suited for the various structures associated with the new railway line.

Following the geotechnical investigation and pile testing phase, FMI was appointed as the specialist piling contractor for the project.

In total, FMI installed 450 piles spread over nine different sites, the piles were one metre in diameter and founded at an average depth of 13 metres below ground level.

Despite all the challenges, the FMI team were able to successfully complete the project within time and on budget.

www.franki.com

METRO EXPRESS BY NUMBERS 26 KILOMETRES OF RAIL TRACK 18 TRAINS 19 STATIONS 850,000 PASSENGERS CARRIED TO DATE 72 | Africa Outlook issue 81 METRO EXPRESS LIMITED
offers
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Tel.: +27 11 062 7600 e-mail: info.za@keller.com website: www.franki.com Franki Africa provides dedicated expertise in: • Ground Improvement • Deep Foundations • Grouting • Earth Retention • Near Shore Marine Works
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both design and construction for the General Construction, Civil Engineering and Mining Industries. Call Franki today about your next project.

Passenger safety and customer service are two major themes of Metro Express Limited’s working practices

already operational along phase one from Rose Hill to Port Louis, transporting more than 850,000 passengers to date. This covers around 13 kilometres with 13 of the 18 trains already delivered, the rest of the line anticipated to be completed by the end of 2021.

Another socioeconomic benefit is the fact that the construction and operation of the LRT network itself continues to generate direct employment opportunities.

Metro Express Limited employs hundreds of people in areas such as project management, engineering, HR, finance, marketing, procurement, station operations, ticket inspection, train maintenance and more. Meanwhile, major contractor Larsen & Toubro (L&T) employs more than 2,000 people across multiple building sites.

A COLLABORATIVE JOURNEY

Dr Mootanah is the first to admit,

however, that the project has brought with it some enormous challenges.

“This is among the most complex infrastructure development ever carried out in Mauritius,” he explains. “We had several challenging aspects and we quickly implemented exceptional and collaborative measures to achieve our objectives.

“For instance, passenger safety and customer service are two major themes in whatever we do at Metro Express Limited. Therefore we have several levels of assurance already embedded in our systems and way of working.”

The first involves thorough safety audits conducted by Larsen & Toubro as part of its contract, covering tests on the rail track and surrounding infrastructure, with train vehicle supplier CAF also conducting fitness tests on all units delivered to Mauritius.

Additionally, the Quality, Health, Safety, Environment and Risk Patrol is

METRO EXPRESS LIMITED 74 | Africa Outlook issue 81
“...PASSENGER SAFETY AND CUSTOMER SERVICE ARE TWO MAJOR THEMES IN WHATEVER WE DO AT METRO EXPRESS LIMITED. THEREFORE WE HAVE SEVERAL LEVELS OF ASSURANCE ALREADY EMBEDDED IN OUR SYSTEMS AND WAY OF WORKING”
JOIN US! SERVICES BS EN ISO 9001:2015 CERTIFIED ISO/IEC 17025:2017 ACCREDITED LABORATORY Sika (Mauritius) Ltd Industrial Estate - Plaine Lauzun 11222 - Mauritius Tel.: +230 2128603/21 | +230 2135723 www.sika.mu SUPPLY CHAIN

LEADERSHIP FOCUS

“I have been involved on high profile megaprojects including the 2012 London Olympics, High Speed Rail in London and Sydney Railway,” Dr Mootanah says. “Since leaving Mauritius in 1994 I had been coming back every year or two to visit and always wanted to return to use my expertise to benefit my home country.

“When I got the opportunity at the Road Development Authority (RDA) in Mauritius, it gave me exactly that chance. It was only when I returned to the country in 2016 that I really noticed there hasn’t been much change in our towns and cities.

“Then came the Metro Express project – the first LRT system in Mauritius. It was the perfect opportunity to use my experience in railways to benefit the country and help in the urban regeneration and transformation of these cities.”

an exercise that brings together representatives of several bodies (including MEL, L&T and supervisory partners) on site each week to supervise the work and control environmental, health and safety aspects.

Safety was also a major consideration during the design phase of Metro Express, while global rail operator SMRT has been providing training to MEL staff and is present during testing exercises to ensure safety policies are properly implemented.

Further, authorities such as fire and rescue and the police, as well as ministerial authorities, have been collaborating closely throughout the project’s development.

Dr Mootanah also explains how collaboration with the public has been critical to the smooth delivery of the project, citing how L&T has set up information desks to dispense information and receive feedback from the public.

“Communication and engagement with the public was also a very interesting challenge to take on given the complexity of the scheme and the multitude of different partners involved,” he says. “We are constantly on the go and continue to engage proactively with the public.

“Nevertheless, it has been and still is a very rich experience. It is a learning exercise, especially for our communication team. But as you know, communication is about understanding your audience. In addition, it is now a 24-seven process with growing number of Mauritians on social networks.

“As it is a national project, people are passionate and share different opinions. This has allowed us to broaden our experience and competence.”

Likewise, communication and cooperation with suppliers has been equally fundamental to the success of Metro Express to date, Dr Mootanah praising the contributions of all companies involved so far, from major contractors such as L&T to other partners including Labolink, Frankpile International and Sika.

Dr Das Mootanah has been the Chief Executive Officer of Metro Express Limited since July 2018. He carries over 28 years’ international crosssector leadership experience in London, Sydney and Mauritius in major infrastructure programmes.
76 | Africa Outlook issue 81 METRO EXPRESS LIMITED
Dr Das Mootanah

Looking ahead, such relationships will continue to be vital in importance as the project nears completion, and with the Mauritian government considering plans to extend the network east to west across the entire island, an exciting period lies ahead.

So much so that Dr Mootanah and Metro Express are encouraging other African nations to follow suit, the CEO concluding by reiterating the potential rail has to connect people and deliver prosperity.

“We have had ministers from Seychelles and delegations from Reunion Island and Madagascar visit the project to see what they can learn for their future transport infrastructure projects.

“Collaborating with African countries will be important for us. We should embrace our African identity and, in the future once this project is delivered, we will look to step up cooperation and collaboration with other African countries.

“I was recently in Madagascar which has such huge potential but is underdeveloped. It gives you an idea of how much can be done in Africa.”

METRO EXPRESS LIMITED

Tel: +230 460 0460 registry@metroexpressltd.org www. mauritiusmetroexpress.mu

Africa Outlook issue 81 | 77 SUPPLY CHAIN
Despite working with a multitude of partners, Metro Express Limited ensures engagement with the public

KEEPING INDUSTRY MOVING

For every direct job created in the automotive industry, at least another five indirect jobs are supported.

According to International Organisation of Motor Vehicle Manufacturers, the sector continues to serve as a vital employer and economic stimulator in every region of the world.

In East Africa, Kenya’s National Automotive Policy is seeking to transform the automotive industry into a significant GDP contributor by 2023, helping to generate employment and upskill large numbers of people across the country at the same time.

Indeed, if existing assembly capacity is maximised to 100 percent output, almost 80,000 jobs can be created by

CMC Motors Group continues to distribute leading brands of trucks, tractors and pickups across East Africa, its new Ford showroom in Nairobi delivering an enhanced customer experience
Writer: Tom Wadlow | Project Manager: Lewis Bush
78 | Africa Outlook issue 81 CMC MOTORS GROUP LTD

commercial vehicle assembly alone.

Enter CMC Motors Group Limited, part of the Al-Futtaim Group since 2014.

Present across Kenya, Uganda and Tanzania through a network of showrooms and assembly facilities, the company serves as the customer-facing distributor of several global automotive brands, including Ford,

Mazda, Suzuki, Renault, UD, Eicher and New Holland.

Noel Mabuma is CMC’s CEO, and responsible for leading the firm towards its mission to provide exceptional customer experience by supplying an outstanding range of automotive cars and products with superior levels of sales and aftersales support. And it is a service which he is

determined to continue providing through challenging times surrounding the outbreak of the coronavirus.

“In response to the global outbreak of COVID-19, and in line with our commitment to the health and safety of our associates, customers, partners and their families, we at Al-Futtaim CMC Motors Group would like to reiterate that we are dedicated to

Africa Outlook issue 81 | 79 SUPPLY CHAIN

continue serving our customers with the same level of quality they are used to,” he says.

“We are strictly adhering to the health and safety directives implemented by the local authorities and have so far taken necessary measures to protect all internal and external stakeholders against contamination.”

Mabuma is quick to praise the ongoing efforts of his employees, a team which he believes stands CMC apart.

The company is a keen adopter of the Talent for Growth agenda, a system made up of four verticals (attract, engage, retain and develop) highlighting an employee’s journey within a business that also aids in building a culture of meritocracy that values, recognises and rewards performance.

According to the CEO, clear performance goals and accountabilities are key components to employee engagement and delivering business results that are discussed on the onset.

ABOUT CMC MOTORS GROUP LTD

Founded in 1948 as a Land Rover dealer in Kenya, CMC Motors Group is owned by CMC Holdings Ltd and was acquired by the Al-Futtaim Group in 2014.

The company has grown to become a leading light in the East African automotive industry thanks to exclusive distribution agreements with the likes of Ford, Mazda and Suzuki. CMC also distributes UD, Eicher and Renault Trucks (medium and heavy commercial), as well as buses, tractors and farming machinery made by New Holland.

CMC Motors Group is headquartered in Nairobi and operates an extensive branch network in Kenya, Uganda and Tanzania.

Five key advantages:

• Providing new models to the market and reducing reliance on secondhand vehicles

• Competitive pricing

• Latest engines, including Euro 3 and above (Ford – Euro 4)

• Expertise spread throughout East Africa

• Helps development of local parts manufacturers

Your Fabricator of Choice

We are a large, family run mechanical engineering establishment situated in Nairobi and have been operational for almost 70 years.

We are one of the pioneers as well as leaders in the field of engine reconditioning, precision machine work and bespoke fabrication works in East Africa. We currently employ over 100 staff in our CBD workshop and custom built 50,000-square-foot factory located on Mombasa Road, Nairobi.

Upon CMC Engineering closing in November 2016 we got the opportunity to employ its top craftsmen, as well as inheriting technical knowhow and the opportunity to purchase high-quality parts for fabrication of a variety of trailers under our JOSH QUALITY brand.

As well as fabrication of new products we take great pride in reconditioning our clients’ existing equipment such as old trailers, flatbeds, low loaders and also specialise in conversations such as flatbeds into enclosed units or three-axle semi-trailers into two-axle semis, etc.

We are also specialists in high end precision work involving engine overhaling and gear cutting. Our commitment to all our customers is the provision of a reliable, cost effective and professional service. We pride ourselves on our quality of work built on precision workmanship which paves the way to building a long-lasting business partnership.

www.ssjosh.com

80 | Africa Outlook issue 81 CMC MOTORS GROUP LTD
SOHAN SINGH JOSH & SONS LTD. “In Service Since 1962” Professional Mechanical Engineers Industrial • Commercial • Automotive • Agricultural ssjosh P.O. Box 45924-0100, Nairobi, Kenya Workshop -Josh House, Ukwala/ Ring Road Pumwani, Nairobi Factory - Josh Industrial Estate, Mombasa Road, Mavoko Tel: +254 20 3344337 +254 721 535399 +254 20 4401715 +254 777 440171 Email: info@ssjosh.com Website: www.ssjosh.com JOSH QUALITY

Noel Mabuma: “CMC endeavours to incorporate employees of varying gender, age, religion, race, ethnicity, cultural background, sexual orientation, religion, language, education, and ability in its sourcing agenda in order to promote inclusion and enhance competitive advantage.

“This includes new ways of doing things, increased creativity associated with millennials and better decision-making. Researchers have found that when diverse teams make business decisions, they outperform individual decision-makers up to 87 percent of the time.

“Moreover, we have benefited from a variety of different perspectives arising from diverse cultural backgrounds – higher employee engagement, improved talent acquisition rate and reduced employee turnover where employees feel accepted and valued.”

“An organisation is only as exceptional as the people in it,” Mabuma says, “and to get exceptional people, an agile recruitment process is required. Critical stakeholder decisions are made by way of building, buying or borrowing to support the strategic direction of the business.

“Specific key performance indicators are derived for required roles with an intent to attract the right talent engaged. Upon hire, talent discussions commence whereby their aspirations and developmental gaps are identified and interventions are put into place to build leadership capability.

“Through forward-focussed conversations about our business, organisation, pipeline, succession and people, talent reviews guide the investments we need to make to ensure critical roles are filled with the right talent and the right capabilities at the right time.”

FIT FOR THE FUTURE

This approach has enabled CMC to flourish ever since the company was established in 1948 as a Land Rover dealer in Kenya.

Today, it commands a solid presence throughout its home country and nearby Uganda and Tanzania, benefitting from the weight of its parent company Al-Futtaim Automotive Group which itself has more than 170 showrooms and 25 brands across the Middle East.

This is no better demonstrated than by a $3 million investment into a new Ford sales, service and spare parts facility in the industrial precinct of Nairobi, the Kenyan capital.

It was meticulously designed by local architects in collaboration with the American automaker to offer the most enhanced customer experience possible.

The site is the first showroom in Sub-Saharan Africa to implement the new Ford Signature facility standards with features such as the welcome pod with Ford Halo, curved light rafts amongst the display area and an iconic

HOW IMPORTANT IS IT TO HAVE A DIVERSE WORKFORCE?
CMC MOTORS GROUP LTD 82 | Africa Outlook issue 81

Ford entry tower.

“The five-metre front glass façade offers a clear product display and allows plenty of natural light,” Mabuma adds.

“The customer lounge offers a comfortable rest area with a view into the service workshop that enhances transparency of services. The layout connects the showroom, retail parts counter and service reception, allowing for uninterrupted customer flow.

“This project was key for CMC Motors as a dealer of Ford, underpinning our commitment to the brand with a flagship facility to strongly

showcase them in the region.”

Mabuma also reveals that this is not the only property development in the pipeline.

As well as the new Ford facility, CMC plans to refurbish branches across Kenya, Tanzania and Uganda, all in the aim of offering a modernised customer experience across the board.

Two other sites in Kenya (Mombasa and Nakuru) have already been upgraded, and more will follow in the months ahead.

And the CEO reiterates the message made at the beginning – that CMC remains open for business and is doing

all it can to help customers navigate through the uncertainty created by the COVID-19 pandemic.

For instance, all branches continue to be disinfected, with extra sanitisation of vehicles also taking place along with training for housekeeping staff. All guests will also be able to sanitise their hands on entering and leaving premises.

Mabuma concludes: “We encourage our employees and customers to refer to official sources to obtain information on the situation and abide by the guidelines set by the local health authorities in their effort to contain the outbreak. Stay safe and best regards.”

Tel: +254 (0)20 6932 000 www.cmcmotors.com

CMC MOTORS GROUP LTD
SUPPLY CHAIN Africa Outlook issue 81 | 83

Curating a Khula Nathi Culture

Murray & Dickson Construction is continuing to successfully navigate a tough industry environment thanks to its ‘grow with us’ way of working

84 | Africa Outlook issue 81 MURRAY & DICKSON CONSTRUCTION

Major project shortages, non-payment from state entities, hijacking of construction sites – these are all challenges that continue to face South Africa’s building industry.

Indeed, the year 2019 was another challenging one, with many companies collapsing and thousands of skilled workers left without employment, a trend which is showing little sign of reversing in the immediate future unless a concerted, coordinated response from government and enterprise takes place.

However, among the troubles there are some uplifting success stories.

Homegrown Murray & Dickson Construction (M&D) continues to operate successfully and on a sustainable footing, the company increasing its share of a declining national market.

“This bears testament to the skills and capabilities of the group,” comments CEO Rukesh Raghubir, catching up on the last time we spoke with him towards the end of 2018. “Certainly, being an entrepreneurial owner-led business that can respond swiftly to provide solutions is a significant competitive edge.

“Moreover, our focus on only partnering with companies and people with whom we have synergies to achieve our mission of ‘growing a great company with great people and great partnerships’ is also working.”

This latter point is critical, one which is entwined with M&D’s motto of Khula Nathi – grow with us.

It is applied to both employees and the firm’s network of subcontractors and suppliers, a unifying bond which Raghubir says has been crucial in allowing the organisation (and its partners) to not only ride out a tough industry storm, but diversify and develop its portfolio.

“Importantly, we demand loyalty and a firm commitment to our own core values of ‘being safe’, ‘doing it right’, ‘finding the best way’ and ‘doing what we say’ from all our partners,” he

Africa Outlook issue 81 | 85 CONSTRUCTION
Aeroton Water Tower. Technically-complex water projects are a major focus for M&D Construction Group
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adds. “In turn, they have reaped the benefits of this unwavering commitment to quality by growing with us.”

CONTINUING TO DELIVER

Such growth is about to accelerate into Mozambique.

Through a new wholly owned subsidiary, scheduled to be operational in Q2 2020, M&D will be seeking to participate in the construction of vital infrastructure on the country’s major liquified natural gas (LNG) projects.

The new division will be managed by experienced local energy infrastructure specialists, and has already submitted bids on two landmark developments, including one of the largest greenfield LNG facilities to have ever been given the green light.

Raghubir explains the magnitude of the development, one that involves

building infrastructure to extract gas from a field offshore northern Mozambique, pumping it onshore and liquefying it, ready for further export by LNG tankers. The second project will produce, liquefy and market natural gas and comprises the construction of onshore facilities, including two LNG trains with a total capacity of 15.2 million tonnes per year.

In order to deliver on these developments, should M&D tender successfully, the company is actively looking to bring in other individuals who have left the country.

“We are in a position where we can handpick the best of the best, considering our solid track-record and history,” Raghubir adds. “There is also an abundance of construction industry skills available.

“However, the challenge is finding

the right people for our company with its specific culture and values. Experience is just the starting point. There are a host of other factors that need to be considered to ensure that we have selected the most suitable candidate to fulfil a specific role in our company.”

This project pipeline in Mozambique represents an extension of M&D’s work on other significant energy-related developments closer to home.

These include a R210 million contract to build a catch pot tank at Total South Africa’s Alrode depot, and the successful completion of civil works for three 6,500-cubic-metre jet fuel storage tanks at OR Tambo International Airport. M&D has further worked on the upgrade of the fire-fighting system at both the airport and Transnet’s Kroonstad and Alrode fuel depots.

88 | Africa Outlook issue 81 MURRAY & DICKSON CONSTRUCTION

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Africa Outlook issue 81 | 89 CONSTRUCTION

CORE

CREDENTIALS

During the past year, M&D Construction Group has embarked on a restructuring and refocussing exercise.

It is now positioned as a multidisciplinary company backed up with 35-plus years of experience, able to complete work across a range of projects that rely on diverse skills.

The restructured group’s divisions now include:

• Infrastructure

• Pipelines

• Oil and Energy

• Special Projects

As well as operating as a Level 1 BBEEE enterprise (54 percent black owned and 23.2 percent female black owned), the company is also certified across a number of areas. These include CIDB 9CE, CIDB 9GB and CIDB 9ME grading, and ISO 45001:2018 Health and Safety, ISO 14001:2015 Environmental Management, and ISO 9001:2015 Quality Management systems.

Further, M&D is a member of the Black Business Council in the Built Environment, the South African Oil & Gas Alliance, the South African Forum of Civil Engineering Contractors, Corrosion Institute of South Africa, Concrete Society of South Africa and the YPO Construction Industry Network.

“On these projects, we also worked alongside prominent consulting engineering firms such as Kantey & Templer Consulting Engineers, SiVEST and VGI Consulting,” the CEO adds.

“Oil and energy projects will be a significant focus for M&D Construction Group moving forward. This division also intends to participate in the construction of wind and solar farms, as well as positioning itself as the construction partner of choice in EPC contracts.

“Meanwhile, we also intend to deploy our extensive skills and experience in structural steel, mechanical, piping and plate work construction, as well as electrical and instrumentation in these markets.”

THE MULTIDISCIPLINARY ADVANTAGE

Beyond the energy sphere, M&D has made a concerted effort to restructure

MURRAY & DICKSON CONSTRUCTION 90 | Africa Outlook issue 81

Lebone Bokamoso Projects (Pty)

Ltd is a 100% PDI owned building and civil construction company established in 2014. The company was founded out of a need to address the socio-economic challenges currently experienced in our communities and to partake in mainstream economic activities.

and refocus its business, making the most out of its multidisciplinary expertise.

This enables the firm to bid on a wide variety of projects, such capabilities highlighted by Raghubir who goes on to detail a number of developments covering water, mining and what the company classifies as special projects carried out by its own dedicated division.

He starts with Rand Water, a longstanding client for whom M&D is building a four-kilometre steel pipeline in Vereeniging, as well as four hot tops which are said to be the largest in the South African market, work which is due for completion in July 2020.

“Other milestone projects for this specific client body include the R250 million 06 Pipeline and associated infrastructure,” adds Raghubir.

“These are complemented by, among others, our work for Magalies

Water, namely the 11-kilometre-long and 508-millimetre-diameter steel Tuschenkost mine pipeline and pump station, as well as the 43 kilometre-long, one-metre-diameter steel pipeline from the Mafenya Reservoir to Evergreen.”

In the Dr Ruth Segomotsi Mompati District Municipality, M&D is helping to deliver a new wastewater treatment works, while further civil engineering construction highlights include the construction of the technically complex Aeroton Tower on behalf of Johannesburg Water, and a large reservoir and associated services for Heineken South Africa.

“Our continued work for the demanding mining and metals sector also remains an immense source of pride for me,” the CEO adds, before outlining several projects. “One is a R300 million contract to construct various civil structures, access roads,

parking, kerbing, concrete pavements and drainage for Black Mountain Mining’s Gamsberg concentrator project in Aggeneys.

“Moreover, M&D successfully completed the civil works for Coal of Africa’s Mooiplaats operation in Ermelo. The project entailed earthworks and concrete works, including the construction of, among others, a water treatment plant, silt traps, drains and tunnels.”

Other recent mining projects include a 50 ML reservoir and associated infrastructure for Maseve Investments in the North West Province of South Africa, and the installation of an 18.4-kilometre steel raw water pipeline at Northam Platinum’s Booysendal UG2 North Mine.

The third area Raghubir highlights is special projects, a division which he hopes to be involved in the de-construction market for years to come.

+27 84 686 1580 davidm@lebonebprojects.co.za
LEBONE HOUSE 34 Shannon St. The Orchards, Akasia, Pretonia, 0203 E T W A
www.lebonebprojects.co.za
CONSTRUCTION Africa Outlook issue 81 | 91

The special projects unit has also applied for a license to operate technology that turns sludge into resources, M&D already active in a project that entails using sophisticated techniques to turn wastewater into resources, as well as the development of proprietary turbines, pumps and other energy efficiency technologies.

LOOKING AHEAD

As the CEO has already affirmed, such a diverse spread of ongoing projects will only help to futureproof the business against a wider industry backdrop which continues to present challenges.

The largest, without doubt, is the rapidly developing outbreak of COVID-19.

“All M&D Construction Group’s head, regional and site offices have implemented robust measures to safeguard employees and play their

CHAMPIONING DIVERSITY

Asked why M&D Construction Group has built into a successful company over several decades, Raghubir is quick to pay tribute to the firm’s cohort of loyal, dedicated employees, dozens of which enjoying tenures of more than a decade and counting.

Another secret to the group’s success is diversity, as highlighted by the CEO.

“This is reflected by the company’s client base, supply chain and employees,” comments Raghubir. “While many people fear diversity, M&D Construction Group embraces and encourages it.

“It is a significant strength considering that a nation comprising different ethnicities and people with varying cultures and religious beliefs was able to thrive through so many dark periods in South Africa’s history.

“These include the many anxious and uncertain episodes during the Apartheid era and those, such as the global economic meltdown, during our democracy. It is this diversity that will ensure that we as a nation also endure the more recent ‘state capture’ saga that has had such a dire impact on the entire economy, including the South African construction industry.”

& DICKSON CONSTRUCTION
Biological reactor and RAS pump station. M&D Construction Group is strategically positioned as a multi-disciplinary company with more than 35 years of experience that competes in the niche construction markets.
MURRAY

Top: Oil and Energy projects will be a significant focus for M&D Construction Group moving forward.

role in preventing the spread of the virus,” says Raghubir. “However, should a protracted shutdown of the sector become necessary – as has been the case in some of the other local sectors of the economy and elsewhere in the world – this would have a potentially devastating impact on many industry participants.

“This is especially true for smaller companies in the construction value chain considering the very nature of the industry and cash flow. Public private coordination, including relief from the financial sector, will be necessary to save companies and their employees from financial ruin.”

A functioning construction sector is critical for when the virus outbreak passes, the sector responsible for around eight percent of formal employment and 17 percent of

informal employment in South Africa.

And Raghubir is optimistic that the country and region will come through the challenging times ahead, not just those caused by the COVID-19 pandemic.

In his concluding remarks, the CEO outlines his positive outlook for both the sector and M&D, shedding light on several plans which lie in the pipeline for 2020 and beyond.

“President Cyril Ramaphosa has laid strong foundations for growth and we should start feeling the outcome of these policies over the short to medium terms,” he explains. “Certainly, the restructured and refocused M&D Construction Group is well positioned to take advantage of the upturn when it arrives.

million a quarter, and built up adequate cash reserves. This is in addition to resolving outstanding claims, as well as developing a marketing strategy and plan to enhance our relationships with all potential and existing clients.

“Our cross-border initiative should also be in full swing and our staff reor upskilled to drive the new focus of the group. Importantly, we also intend to become a 51 percent black women-owned and 100 percent Black owned company.”

MURRAY

CONSTRUCTION

Africa Outlook issue 81 | 93 CONSTRUCTION

“By this time, we intend to have secured R1.5 billion of work, or R375 & DICKSON
Tel: +27 11 463 1962/1222 info@mdconstruction.co.za www.mdconstruction.co.za
Above: M&D Construction Group continues to build on a long legacy servicing the mining and metals infrastructure market. Right: M&D Construction Group continues to demonstrate its extensive capabilities in the oil and energy infrastructure market
94 | Africa Outlook issue 81 LAURUS DEVELOPMENT PARTNERS
One Airport Square, Ghana

Redefining Development

Laurus Development Partners is setting the standard in real estate development and management in Africa with its first-class team, strategic partners, successful track-record in project delivery and a highly progressive, impactful ethos

Project Manager: Eddie Clinton
Africa Outlook issue 81 | 95 CONSTRUCTION

“Africa is probably the last true emerging market. One in four customers worldwide will be African in 10 years’ time, and estimates suggest that $1.6 billion in additional infrastructure investment will be required annually during this period to accommodate such growth.

“Existing built stock, in the main, is not appropriate in terms of quality or quantity in most asset classes. Yet with that as a backcloth, the opportunities here are rather amazing for development companies, particularly when compared to more established markets for which all needs are already relatively satisfied.”

For Peter Young, the opportunity to help address Africa’s growing infrastructure and new-build gap was something of a dream come true.

A love of real estate has seen him enjoy an illustrious career spanning more than 35 years to date, specialising in retail-led, large-scale, mixeduse development and regeneration. Today he stands as the CEO of Laurus Development Partners – a leading West African property developer.

“Laurus has a great track record,” he explains.

“We develop high quality, efficiently designed, environmentally sustainable projects that deliver value to our investors, occupiers and communities. We’re a full spectrum developer offering a holistic range of specialisms from preparing client briefs through master

planning, built design development, property marketing, leasing, sales and tendering to tenant coordination, AM&FM.

“With a completed development portfolio valued at $1.2 billion, it is our goal to change how real estate development is undertaken in Africa.”

DEFINED BY FIRST CLASS DEVELOPMENTS

Indeed, Laurus is already well on the way to achieving this ambition.

The company is currently in the process of introducing its Development Management Construction specialism, whereby the company will embed its construction teams within its overall design team and introduce potential constructability issues into initial designs.

“I am of the opinion that the highest risk related to development in this region is construction,” Young states.

“By ensuring the construction team are fully cognisant of the design, specifications, procurement and costs, we can reduce risk massively, and with no need to tender can save valuable programme time.”

Through this approach, it is hoping to improve both pre-construction and construction programmes, as well as deliver projects at more competitive, more certain final costs. It is consolidating as a one-stop shop provider – a hugely attractive value offering in the African market.

Urban Systems Design

Urban Systems Design is a London based technical design practice, specialising in MEP and environmental design. We have extensive experience in international projects, from Europe to Africa, Asia, Middle East and Latin America.

How We Work

We believe that the best buildings and places are made with a holistic approach where everyone has a voice from the start – clients, consultants, contractors, operators. As MEP and environmental designers, we contribute best value when we are appointed at the earliest stage of a project, thus integrating conceptual ideas into the architectural design from the start and developing these through various design stages right through to building operation.

All our projects are director-led to ensure the value of our experience is maintained throughout. Our team, which comprises engineers, architects, researchers, come from a rich variety of cultural and educational backgrounds, as we believe that diversity is a strength. We are focused on delivering futureproof infrastructure and buildings compliant with the client’s brief, aspirations as well as considering the future environmental agenda that could impact the development.

We have a collaborative partnership with clients operating in Africa. Our business areas include: offices (One Airport Square, Accra, Ghana), telecoms infrastructure and data centres (for clients like Telkom SA SOC Ltd), commercial (Two Rivers Mall, Nairobi, Kenya), hotel and high-end residential (La Definition, Lagos, Nigeria for Total), sports and leisure, hotel, residential and retail (Twin Lakes, Lagos, Nigeria), retail (Jabi Lake Development, Abuja, Nigeria), application of renewable energies (e.g. research on waste-to-energy plants for Nigeria) and research on large-scale development of affordable, environmentally sustainable housing.

www.urbansystems.design
96 | Africa Outlook issue 81 LAURUS DEVELOPMENT PARTNERS
One Airport Square, Ghana video

MEP & Environmental Design

About Urban Systems Design

T: +44 (0)20 3790 8692 hello@urbansystems.design www.urbansystems.design

Urban Systems Design (USD) is a London based technical design practice, specialising in MEP & Environmental Design, at both macro (masterplan) and micro (building) scales. The Directors of USD have extensive experience of working across various countries in Africa, including delivery and construction of projects in Ghana, Nigeria & Kenya.

Having designed and delivered across many countries in Africa, Europe, North & South America, Middle East and Asia, the international outreach of the business has given USD a great advantage in understanding both the challenges and opportunities offered by working in different cities and countries – context, climate and culture are fundamental design factors that must be understood when working internationally.

USD’s experience covers various business sectors – hospitality and leisure, data centres, large scale retail developments, cultural as well as commercial and residential projects.

Urban

Pedestrian

One particular distinguishing feature of the business is how we integrate environmental design into day to day MEP engineering design. Every single project is considered environmentally, to maximise the potential of the project in delivering a sustainable design solution.

Designing out risk and considering self-sufficiency as operational autonomy also form an integral part of our design approach, in particular where local infrastructure is unreliable relative to particular demand – such as Data Centres.

As part of future proofing design and ensuring asset value retention, our design approach considers the future today; we share with our Clients options as to how they can secure their projects against future uncertainties, be they legislative or environmentally driven or purely from an investment perspective.

One Airport Square, Accra, Ghana (Mario Cucinella Architects; 20,000m2; offices; MEP / Environmental – BDSP)

Jabi Lake Mall, Abuja, Nigeria (MDS Architecture; 31,500m2; retail; MEP / Environmental – BDSP)

Urban Systems Design
Microclimate analysis
comfort analyses Environmental masterplanning Zero Carbon Strategies MEP
Circular Economy Environmental design Façade
Building
Masterplanning is another particular business expertise of USD, whereby our engagement covers both MEP/Utilities Infrastructure Design again coupled with the benefits of environmental design and renewable technologies. Systems MEP systems Renewable technologies Fire protection systems Vertical transportation IT
masterplanning Design LEED, BREEAM & WELL
performance
physics
& AV systems
La Definition, Lagos, Nigeria (Architect: Benoy; 130,000m2; mixed-use hotel & residential; MEP / Environmental – CBDSP)

“Many international corporates requiring new real estate developments, whether they’re in retail, hospitality or industrial, are looking for a one-stop shop solution,” Young adds. “They typically only want to deal with a single entity and provide a simple brief for, say, a grade A office building of ‘X’ square metres within budget of ‘Y’ USD.

“They do not want to manage a team of 25 consultants, and there are not many players who will take on such a comprehensive development and construction delivery role. With our structure and expertise, we believe we are best suited for such a position.”

The company’s portfolio is reflective

of its esteemed value offering.

To date it has delivered a multitude of flagship projects across West Africa, its work on the Heritage Place office development standing as a prime such example.

“Heritage Place is the only LEED certified office building in Lagos, and one of few in the region,” the Chief Exec reveals. “Its features include rainwater harvesting, passive solar protection, enhanced indoor air quality, office recycling facilities and an efficient comfort cooling system.”

Architecturally, the building is a landmark development in the Nigerian capital, combining striking façade design with eight floors of high-end

CHANGING THE FACE OF REAL ESTATE

Laurus Development Partners is striving to set new standards in a number of different markets across West Africa and beyond through the application of international design, delivery and management. These markets include, but are not limited to:

RETAIL: Focussed on community malls with retail partners.

HOSPITALITY: Working closely with a hospitality partner, delivering in line with their brand and operational spec requirements.

TELECOMMUNICATIONS: Working with their framework telecoms partner, where Laurus acts as the development company delivering all development needs including retail, head office, regional offices, training centres, masts and data centres.

INFRASTRUCTURE: Working with an African conglomerate partner, focussed on deep sea ports, berthing, dry docks, aviation such as new airports, terminals and cargo facilities, all strategically supported by major logistical distribution and free trade zone hubs.

LEISURE AND ENTERTAINMENT: Working with an international multimedia partner to deliver a unique, flagship groundbreaking mixedused development named Arena that will include a retail mall, hospitality facilities and a conference/exhibition centre. Also working with a multiplex operator in delivering cinemas for Arena and other third party projects that will be some of the largest in Africa, offering a wide range of screen experiences.

RESIDENTIAL: Working with new technologies to meet demand for large-scale housing that is efficient, highly engineered, and sold at a competitive price point.

office space and five floors of parking space, plus meeting rooms, cafes and a reception.

Young himself has also delivered work internationally, including a mixeduse development in Feltham in the UK. The project comprised an ASDA supermarket superstore together with a strong retail line-up, a library, medical centre, residential and offices.

Another significant project completion was Cairo Festival City retail mall. Young continues: “This at the time was the largest single built structuring building in Africa, standing at 326,000 square metres. The mall features a comprehensive mix of more than 310 shops including Egypt’s first IKEA, all served by 6,500 parking spaces.

“We worked with Al FuttaimCarillion and Orascom as joint contractors, and it’s truly a great illustration as to what can be achieved with sound collaboration between development companies and construction contractors, which is so important in Africa.”

Morgan Omonitan & Abe Ltd

Morgan Omonitan & Abe Ltd, also known as MO&A, is an engineering and development consulting firm based in Nigeria.

The company has been operating since 1972, meaning it has almost 50 years’ experience in providing essential consultancy services such as civil and structural engineering, project management and independent expert services to the private and public sectors.

“Our mission is to provide innovative and enduring engineering design and development solutions to the built environment through imaginative lateral thinking to meet client and end-user needs.”

T +234 (0) 808 913 7683 E info@moanigeria.com www.moanigeria.com

LAURUS DEVELOPMENT PARTNERS 98 | Africa Outlook issue 81
Proudly supporting Laurus Ultima throughout Africa engineersHRW Civil and Structural Engineers Unit 10 Blue Lion Place 237 Long Lane London UK SE1 4PU +44 (0) 20 7407 9575 www.ehrw.co.uk Engineering & Development Consulting FIELDS OF EXPERTISE • Structural Engineering Designs • Construction Management • Transportation Planning • Civil Engineering Designs • Engineering Planning • Project Management www.moanigeria.com 241, Igbosere Road, P.O. Box 7121, Lagos, Nigeria T +234 (0) 808 913 7683 T +234 (0) 909 360 8794 E info@moanigeria.com CONSTRUCTION Africa Outlook issue 81 | 99

PETER YOUNG: “One of the most important elements in delivering successful projects is achieving good professional team partnering and nurturing this. Laurus focusses on geocentrically located executive teams in Johannesburg and London, working to a more efficient structure and operation.

“The output is a faster, more efficient pre-construction design process. From our perspective, in addition to design speed, there is the additional benefit of reduced fee cost which can be translated back to the client as a project cost saving.

“We are also developing supplier partnering agreements for major build material procurement streams, and this has transpired to be very mutually beneficial. The supplier gains by having a preferred supplier status; a good quality relationship and knowledge of pipeline projects they can input upon developing their order book. As Laurus, we gain from early supplier input, design support, pricing and improved warranty support.”

PROVIDING EMPLOYMENT WITH PURPOSE

By maintaining consistent quality across each of these projects, Laurus has garnered an unrivalled reputation, and with that reputation has become renowned as a leading soft-landing partner to international corporates looking to set up in Africa.

Beyond projects and its Development Construction Management plans, however, the company is also focussed on bolstering its offering by pursuing a number of alternative initiatives.

Currently it is in advanced discussions with investor funds regarding the facilitation of a local Naira denominated real estate development fund, one that would offer the opportunity to reduce foreign exchange risks in Nigeria and deliver Naira-based leases which are available at more attractive rates to tenants.

Further, it is also looking to acquire incomplete projects or those needing more proactive development in order to increase investment value.

“This is strategic and offers Laurus the opportunity to secure good quality assets at reasonable pricing levels, often within a structure to deliver to the exiting investor a further opportunity to share in the increased value enhancement process,” Young comments.

“Marketing is also going to become an increasing focus for us. We have never previously undertaken any

marketing, our growth having been achieved simply by opportunity and proven project delivery, but we’ll be ramping this up moving forward.”

Beyond operational investment, Laurus’s workforce equally stands to benefit greatly from the company’s emphasis on continual improvement.

Not only has the company cultivated a family culture, it also makes daily strides to ensure that its staff are heading in the right direction when it comes to personal development, both locally and internationally.

“We are keen to ensure everyone has a good quality career path,” Young affirms. “We view ourselves as expats that empower the local workforce.

“We are here for the long term and want to give back wherever possible – I believe in performance being rewarded through bonuses and other packages.

“Our best quality staff are those who are originally local, but we have worked in established marketplaces and are now keen to bring that experience back home. Having a good combination of international expertise and experience as well as a good understanding of local customs is crucial.”

GRASPING THE OPPORTUNITY

In the same light, Laurus likewise takes pride in a plethora of corporate social responsibility efforts.

Beyond the impact it makes with its developments, many of which feature LEED certification or other sustainability credentials, it is now looking to establish training academies on site at some of its major construction projects.

Young explains: “In the construction industry as an example, in Nigeria, there are no colleges or other training establishments for construction trade skills. With this proposal, Laurus would deliver the academic training and classroom facilities, and in turn the contractor has to buy into delivering supervised work experience on site.

“On a typical $100 million project we

How important are partner and supplier relationships to the success of your business?
Hertiage Place, Nigeria
100 | Africa Outlook issue 81 LAURUS DEVELOPMENT PARTNERS
Heritage Place, Nigeria video

could provide fantastic real working exposure to some 300 youngsters and would look to take high performers through further accredited courses.”

The recent review of its construction processes is a second such initiative, Laurus now developing cold-rolled steel fabricated panels from hoardings that were previously discarded. These are then donated to assist in community development initiatives, such as the construction of libraries, schools and hospitals.

“In this way, not only are we making a financial profit for our clients, but we’re also able to leave behind a positive legacy to benefit local communities and other stakeholders,” Young adds.

Indeed, this will continue to be the primary objective underpinning

Top: Jabi Lake Mall, Abuja, Nigeria

Top right: Renaisance Tower

Above: Douala Retail Park. Right: LaD3

Left: Telecoms Production Hub

Laurus’s entire operation moving forward, the opportunity to further build upon this legacy being particularly promising.

The enterprise is currently holding discussions with several potential investors that could provide equity for its new development pipeline. And while there may be obstacles in this owing to uncertainty, the CEO remains optimistic as a result of the company’s already proven ability in helping to unlock Africa’s potential.

“Despite the risks and challenges we all face in real estate development, I remain confident about the future,” he states as our conversation comes to a close.

“There are huge opportunities in undertaking new developments –infrastructure, new commercial build

and residential – and the truth is we need more international developers, contractors and professional consultants.

“Likewise, we need more financial institutions to close the infrastructure gap and overcome the lack of funding, and we’re hopeful that West African governments will work towards creating an environment that is more investor friendly, offering incentives to new corporates to attract such players.”

Tel: +234 (0) 1 295 4892 www.laurusdp.com

LAURUS DEVELOPMENT PARTNERS
Africa Outlook issue 81 | 101 CONSTRUCTION
102 | Africa Outlook issue 81 TIBER CONSTRUCTION

Last Built to

Despite a challenging industry backdrop, Tiber Construction continues to deliver striking developments across Gauteng, the central business hub of South Africa - its approach to knowledge sharing and mentorship key to its longevity

Writer: Tom Wadlow Project Manager: Eddie Clinton
Africa Outlook issue 81 | 103 CONSTRUCTION

Few people spend more than 25 years at the same company without good reason. Either they are a glutton for punishment, or they continue to gain enjoyment and reward from their work as time has progressed.

Jose Correia, Managing Director of South Africa’s Tiber Construction, falls into the latter category.

“I have always been fascinated by construction and started down the civil engineering route,” he says. “Joining Tiber was very much a word a mouth exercise back then, it was about relationships and people you knew. Fast forward 25 years and I am still here, it has been a very rewarding learning curve and that I would say is

ABOUT TIBER CONSTRUCTION

Tiber Construction was founded in 1951 by Paolo Rivera, and now stands as a highly reputable leading light in South Africa’s building industry. The company provides a hands-on approach and delivers sustainable property solutions, including traditional building contracts, special projects, full turnkey solutions, client partnering and property development and management.

Tiber is headquartered in Sandton, and operates a formal safety and loss control programme, with periodic inspections on all building sites and company facilities. The firm is also an active community supporter through involvement in several projects targeting education and youth development, and supporter of numerous charitable organisations.

the reason I will always be part of the company.

“You should never stay long at a job you don’t enjoy. For me, the best reward comes from showing people the constructs you have worked on – your CV is like no other, made up of physical structures that are there to last.”

Such lengthy tenures are also an increasingly rare occurrence. Though exact figures vary, the average length an employee spends at a company is thought to be around three to five years, a far cry from the quarter century Correia has served at Tiber.

He made it the hard way, working through the ranks from a site engineer in 1994 up and through various levels of management before being made Managing Director in 2013.

Correia’s story is particularly relevant, for it represents what he believes is the major reason why Tiber has been able to flourish since it began operations in 1951, while also enduring tough

ISF Group

EXCELLENCE IN AFRICA THROUGH PARTNERSHIPS

ISF Group is a diversified engineering, procurement, construction and management company, with projects across the African continent. Over the past decade, we have sustained long-lasting partnerships by striving to consistently exceed expectations, leading to ISF’s appointment by Tiber to install all specialist services in the ACSA Head Office at OR Tambo Airport.

In an increasingly competitive environment, ISF focuses on innovation, agility, speed to market and continuous improvement. The Group has diversified its offering to provide end-to-end solutions, becoming a multi-disciplinary organisation that can add value to any project, small or large. ISF has developed specialist expertise in telecoms infrastructure, building and concrete structures, ICT infrastructure, energy generation, fire and security services.

104 | Africa Outlook issue 81 TIBER CONSTRUCTION

periods such as the one South Africa’s construction industry finds itself in currently.

“Our emphasis on succession planning, knowledge exchange and mentorship is critical to the sustainability of the company,” he says. “This is a principle that has always been passionately driven by our CEO, Fernando Cardoso who has been with the company since 1981.

“We believe that we need the next tier of leaders ready, as you cannot expect succession to fall into place in 10 years’ time automatically. And this starts from the bottom up with very specific training programmes like the youth skills development programme we recently implemented, which is being managed by a retired construction director who happened to be a big influence on my development at the start of my career and was my first mentor.

“You must master the basic skills, and this continues into management

training which takes place from site to site.”

Indeed, Correia is now part of a massively experienced management team who are constantly imparting their industry experiences and wisdom onto the next generation of potential company leaders.

Senior managers act as mentors for every budding leader, with all workers able to take advantage of various training and development investments – even hourly paid staff are able to develop skills in numerous trades, not just those which Tiber is paying them for.

The company also provides financial support through its bursary scheme, aimed at helping students who wish to study the construction discipline. To date, many students have successfully obtained qualifications and been employed full-time at Tiber.

“I know it is a cliché, but people really are our most important asset,” Correia adds. “I felt this as I developed

Africa Outlook issue 81 | 105 CONSTRUCTION

from a site engineer, and also benefitted hugely from the guidance and mentorship received from our CEO Fernando Cardoso.

“Unlocking potential is about more than identifying skills. It is also about getting to know the individual, valuing their contribution and making them know that you care.”

ADAPTING TO THE ENVIRONMENT

Such a wealth of experience and track record of delivery has been crucial to Tiber navigating what the MD describes as an extremely difficult time for the South African economy and the construction industry, a period which has seen margins squeezed and several companies close down as a result.

The company has also been able to adapt and diversify its business, removing a sole reliance on tenders to generate income. This has included venturing into new subsectors and entering partnerships to deliver turnkey solutions alongside developers.

Correia cites an ongoing development for Airports Company South Africa (ACSA) as a prime example.

Situated at Johannesburg’s busy O.R. Tambo International Airport, the headquarters building is Tiber’s first foray into governmental work, the company part of a consortium which includes MMQSMace and Heri Prop.

Work on the R1 billion commercial development began in Q1 2019 and comprises two five-storey and one four-storey building, including the head offices of ACSA and the South African Civil Aviation Authority, recreational space and parking.

“Previously all of work was carried out in the private sector, so working with ACSA was something different for us,” Correia says. “Being part of a consortium delivering the full project has also proven beneficial and is something we will look to do more of in the future, and being at O.R. Tambo has provided fantastic exposure.

“The most striking from a delivery perspective is the huge emphasis we have placed on skills development and local empowerment. There are different requirements involved, but we are making tremendous progress.”

With government projects tending to require stricter BEE adherence, Tiber has made enormous strides in the empowerment realm over the past few years. In what Correia describes as a responsible transformation of the company, it has risen dramatically from Level 8 all the way up to Level 1, which is the highest possible ranking.

An ongoing project for Investec is also showcasing Tiber’s adaptability.

It involves the refurbishment of its offices in the heart of Sandton, Johannesburg’s financial district, the MD expecting the development to be handed over in March 2021.

Critical to its success has been and will continue to be a seamless building process, creating minimal disruption to Investec employees who are still working within the existing site. For Tiber, this has presented numerous challenges, challenges which have been overcome by careful planning and a willingness to work outside of usual office hours.

“I would also like to highlight how important our partnerships with suppliers have been on this project and all of our developments,” adds Correia.

106 | Africa Outlook issue 81 TIBER CONSTRUCTION
Jose Correia, Managing Director

“In this tough environment, it is all about relationships and who you can trust, and Tiber’s success has increasingly involved partners over the years where previously we tended to take on everything ourselves. Our Joint Venture with ISF, for example, is an important ongoing relationship and was critical in winning the Investec project bid.

“We must also be open with and get to know our own clients, who in turn rely on us to deliver for them. One of the key reasons Tiber continues to secure work is because we are hands on in the way we serve customers –they can pick up the phone anytime they like and get through to our senior leadership.”

A MODULAR FUTURE

These relationships will be vital in what continues to be an uncertain time in South Africa’s building trade, Correia also pointing to the need for Tiber to continue exploring new ideas as a means to diversify income and safeguard the business.

A perfect case in point is the firm’s embracement of modular, or prefabrication construction techniques.

On a basic level, this involves building elements of buildings off-site in a controlled environment before being transported to the site for assembly, allowing greater attention to detail, faster turnaround times and in many cases reduced costs as far less activities are executed on site, therefore requiring substantially less labour.

Tiber, in partnership with Ohlhorst, uses a lightweight building solutions modular frame, a solution which also enables improved quality, increase in safety and security, reduced carbon emissions and a greater control of costings.

In Johannesburg, the company has just completed construction of a new Hi Hotel, its 123 rooms all created offsite in what is the first hotel of its kind in South Africa.

“Modular is an advanced technique in the likes of Europe, and we are showing that it works here too,” Correia says. “Every room was built at

our off-site production facility and the only thing which the room didn’t have in when it left our yard was the linen.

“Apart from the reception area and linen rooms, which were built on site, every part of this hotel was assembled, with rooms being added in stacks of three at a time. It has been incredible to see this come to fruition and the best compliment we can get is that it looks like it was built in-situ – we have received a lot of interest from developers off the back of this project and are now marketing the concept very energetically.”

And this is, for Correia, where the future lies for Tiber and the industry.

Although he does foresee brighter times ahead, the next year at least will continue to be a rough ride for the sector at large, which makes the adoption of new techniques and innovations all the more imperative to gain an edge in the market.

This is reflected in Correia’s concluding remarks, the Managing Director signing off in an upbeat fashion.

“Our industry is directly linked to the performance of the wider economy, and there is a lack of business confidence at the moment,” he says. “However, it is not by any means a case of doom and gloom, but it is imperative that the government and the private sector work together to ensure that opportunities are unlocked.

“For Tiber, our focus is to continue exploring new and different opportunities and do things differently, thereby differentiating ourselves from the general traditional market, converting the approaches we have had from developers into new business. We must be lean and agile so we can maximise opportunities when they arrive.”

TIBER CONSTRUCTION

Tel: +27 11 430 7700 tiber@tiber.co.za www.tiber.co.za

Africa Outlook issue 81 | 107 CONSTRUCTION
Investec entrance view CBS Hi Monte Hotel

DRIVEN by Data

Through its specialised Fleet Analytics division, Macrocomm is empowering fleet operators with invaluable insight into their daily transportation operations

Data, as is widely accepted, has become the world’s most abundant and arguably valuable commodity.

Today, we talk about data volumes in quantities most have never heard of, with one zettabyte equating to around a trillion gigabytes, and the numbers continuously growing.

At the end of 2018, the International Data Corporation (IDC) predicted some 33 zettabytes of data made up what is now commonly called the world’s ‘datasphere’, a body of information which IDC believes will expand to 175 zettabytes by as early as 2025. This translates into an average annual rise of more than 61 percent.

Interestingly, by 2025 some 90 zettabytes of data will be created on IoT devices, while nearly a third of all data generated will be consumed in real time.

Such is its universal usefulness, data is commonly dubbed the new oil.

In a transportation context, it has the power to transform the fortunes of enterprises reliant on fleets of vehicles moving on roads daily. So much so, the gathering, analysing and presenting of such data – known as fleet analytics –is now recognised as a profession in its own right.

MACROCOMM –THE BASICS

Established in 2005, Macrocomm offers turnkey digital solutions which are deployed by a team of experts across South Africa and the wider continent, operating through partnerships in key African countries.

The company is ideally placed to offer solutions for smart cities, smart industry and energy management systems, among other use cases, and also stands as an accredited reseller of mobile, data, networking and infrastructure related products, either as standalone offerings or as part of their IoT portfolio.

Macrocomm is a proud Level 1 Broad-Based Black Economic Empowerment entity. They pride themselves on job creation and upskilling government employees through training and skills transfer programmes. The firm also adheres to strict health and safety standards, as reflected by their NOSA accreditation.

108 | Africa Outlook issue 81 MACROCOMM
Africa Outlook issue 81 | 109 TECHNOLOGY

“There are many challenges facing South African businesses in a dynamic environment,therefore, I believe that technology is an enabler to address these challenges and best access opportunities to build the country.”

Enter South Africa’s Macrocomm. A Level 1 Broad-Based Black Economic Empowerment entity established in 2005, the firm helps organisations address critical technological challenges through a comprehensive portfolio of products and services.

Their mission is to become a leader in smart solutions across Southern Africa, developing and deploying turnkey solutions that automate communications between central systems and remote devices.

The organisation is led by CEO, Sivi Moodley, an active entrepreneur for over three decades. Sivi Moodley sees smart technology as a critical enabler in a dynamic albeit challenging South African business environment.

“I’ve led and managed medium to large businesses predominantly in the mobile networks, retail, property, IT and Internet of Things (IoT) arenas,” he says.

“My goal has been to guide Macrocomm in becoming a leading supplier of smart solutions to large corporates in our country, and given my extensive international travels, I strategically lead the Macrocomm team in line with international best practices.”

In order to help achieve their mission, the company launched Macrocomm Fleet Analytics (MFA), a division dedicated to leveraging their expertise in AI, IoT and Industry 4.0 space in order to serve clients operating fleets of vehicles.

“There are many challenges facing South African businesses in a dynamic environment,” Moodley adds. “Therefore, I believe that technology is an enabler to address these challenges and best access opportunities to build the country.”

“We believe that technology is a means to drive economic growth in

SqwidNet

Changing lives…

SqwidNet launched in November 2016 as the licensed Sigfox operator in South Africa. Its internet of things network offers low cost access to IoT solutions and operators in South Africa, creating opportunities for businesses small and large to take innovative strides that ultimately change lives.

SqwidNet is a wholly owned subsidiary of Dark Fibre Africa, the premier open-access fibre connectivity provider.

Its network provides nationwide coverage for the internet of things, allowing millions of sensors and devices to send small packets of data for analysis, immediate action and record keeping. It covers over 90 percent of the population (50.4 million people), and 90 percent of South Africa’s national road network.

This, alongside a growing partner network, enables the firm to provide strategic direction and advice on IoT solutions that solve business challenges.

Why SqwidNet?

• Long range – Sigfox technology enables devices to communicate with the SqwidNet network from tens of kilometres away.

• Low cost – it is up to 10 times cheaper to operate Sigfox-enabled devices on the SqwidNet network than to use cellular technology.

• Low power – the battery in a Sigfoxenabled device could potentially last for 10 years or longer, making it up to 300 times more energy efficient than a regular cellular device.

• Reliable and secure – because the SqwidNet network is based on Sigfox, it has built-in reliability and security features.

www.sqwidnet.com

110 | Africa Outlook issue 81 MACROCOMM

Driving innovation through IoT.

Bringing a global ecosystem together to solve Af rican problems.

CONNECTED DEVICES
PANT
new wave CMYK

South Africa, and that is one of the main reasons I originally entered the technology space.”

Macrocomm Fleet Analytics is the latest vehicle through which Moodley and the company are looking to bring South African organisations into the fourth industrial revolution (4IR) era.

Many transportation-focused enterprises may be daunted by the prospect of evolving beyond what might be simple telematics systems. The CEO explains the basic premise of Macrocomms’s new division, a business helping clients to bridge the data gap.

“This division is specifically focused on providing valuable and useful information to fleet operators by capturing data, analysing it using unique algorithms and feeding the end results back to the operator via a simple dashboard,” he says.

“What makes the MFA system unique is that it also feeds back the costs of the operation and, very importantly, the cost of any deviations from the norm. Another critical element is that the dashboard can be customised to suit an individual client’s needs.”

“For example, particular risk areas can be highlighted, including speeding, acceleration, deceleration, cornering and after-hours travel, while the number of variables measured can also be increased or decreased as and

Sivi Moodley: “We do not believe in looking at this through the lens of suppliers. Rather, we prefer to create partner companies where organisations are able to create environments that, to use one of my personal quotes, ‘create win win win environments’ – where it is a win for us, a win for our supplier or partner and ultimately a win for our customers and consumers.”

“Any relationship must be able to translate into value across all parts. If it does not translate into value, it is not a long-term relationship. It becomes a short-term relationship out of expedience. We believe in building long-term, sustainable relationships where all parties in the value chain always benefit and grow.”

when required.”

Moodley also refers to the information overload scenario, something which MFA’s platform removes by analysing and presenting data in a coherent, concise and cost-centric way, and avoiding what the CEO refers to as analysis paralysis syndrome.

Crucially, MFA’s system can integrate with data from any telematics provider, meaning clients can keep their existing systems should they wish, and that any fleet operator can adopt the MFA dashboard.

The result is that customers will be able to find answers to important questions. How much is excessive idling costing your organisation?

How important are suppliers to your success, and what do you look for when choosing a partner company to work with?
Christiaan Abrie, MD, Fleet Analytics & Connect Christo Nichols, Utilities, Managing Director
“A SUCCESSFUL BUSINESS IS ONE THAT IS ABLE TO ADAPT TO CHANGING ENVIRONMENTS AND UNDERSTAND THE DYNAMICS OF THE COUNTRY AND THE WORLD, TAKING INTO ACCOUNT CHANGING TECHNOLOGIES TO BEST ENABLE COMPANIES TO ACHIEVE THEIR GOALS”
MACROCOMM 112 | Africa Outlook issue 81

What makes the MFA system unique is that it also feeds back the costs of any deviations from standard routes

Do you know what errant driver behaviour is costing you? Can you compare different driver patterns to find an optimum resolution? What is your total, accurate daily fleet running cost covering everything from maintenance and depreciation to fuel consumption?

Moodley’s key message is that, with MFA, all of these vital questions can be answered.

The successful establishment of this specialised division will only serve to futureproof both clients across South Africa, as well as Macrocromm itself.

The company is looking ahead to a brighter next chapter, which they hope will see more and more enterprises harness the power of fleet analytics.

This ties in neatly to Moodley’s concluding statement, the CEO finishing off by outlining what he believes is the essential ingredient to a successful business.

He says: “A successful business is one that is able to adapt to changing environments and understand the dynamics of the country and the world, taking into account changing technologies to best enable companies to achieve their goals.” MACROCOMM

Sakh’ikhaya Suppliers is a BBBEE business specialising in the supply, building and maintenance industries. The team recognises that effectiveness, efficiency and quality of service is the cornerstone of the business; and we will offer our clients a single point of contact for building services covering such aspects as supply, maintenance, engineering, production support as well as skills transfer. Water and Sanitation | Construction | Supply 6 Jones Street, Parow, Cape Town +27 (0) 930-6706 info@sakhikhaya.co.za www.sakhikhaya.co.za
Tel: +27 10 493 6871 innovation@macrocomm.co.za www.macrocomm.co.za
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TECHNOLOGY Africa Outlook issue 81 | 113

CONNECTED Keeping Kenya

As the coronavirus outbreak continues to escalate, the Technology Service Providers Association of Kenya is ensuring the country remains online and able to communicate key information

114 | Africa Outlook issue 81 TESPOK
Writer: Tom Wadlow | Project Manager: Sam Love

When the city of Wuhan in the Hubei province of China reported its first cases of coronavirus, few would have foreseen the escalation that continues to sweep across almost all parts of the world.

At the time of writing, more than 441,000 cases of COVID-19 have been reported, with 111,000 of those having recovered and over 20,000 people losing their lives.

While the vast majority of the infected populous will make a full recovery, the ease at which the virus is transmitting is cause for tremendous concern, especially given the strain it is already placing on some of the most advanced healthcare systems in the world.

In Africa, the number of confirmed cases has passed the 1,000-mark, South Africa alone registering more than 400.

While the region appears to be behind other parts of the world such as Europe, fear is spreading that the continent will soon catch up, leading

many governments to issue measures to curb the progress of the virus.

Kenya is one such country. Despite recording a handful of cases so far (25), the country is headed towards a period of lockdown with public venues closed and international flights grounded.

Healthcare workers are on standby to handle an influx of patients and are rightly being admired around the world for their brave, professional and selfless commitment to the cause, often risking their own lives by being in such close proximity to COVID-19.

Another critical element to societies’ efforts to combat the virus is something of an unsung hero, what we all take for granted on a day to day basis – communication.

In Kenya, telcos and tech service firms are working around the clock to ensure their services remain online and reliable, their capabilities vital in ensuring people and businesses remain informed on the latest developments and advice given by governments and

health authorities.

Fiona Asonga is the Chief Executive Officer of the Technology Service Providers Association of Kenya, commonly known as TESPOK, a non-profit organisation representing the interests of telcos and communications providers in the country.

“We are beginning to see the number of cases doubling up, and our members are in critical need of information which we are obtaining from the government,” she says. “The situation is evolving all the time and so the authorities are trying to find a balanced position from which to move forward.

“We are already seeing a big jump in the demand for home internet use and it is crucial the industry is able to provide this, so we are trying to establish what support is needed for our members to make this happen. It is a two-way conversation we are trying to facilitate with the relevant government agencies.”

Africa Outlook issue 81 | 115 TECHNOLOGY

The importance of reliable communications in Kenya cannot be understated. The end of 2018 saw the country pass the 100 percent mark in terms of mobile penetration, with around 49.5 million mobile cellular subscriptions which are transforming the national economy.

New developments like the Global Roaming Exchange at the Kenya Internet Exchange point, an international routing hub for the nation’s mobile technology, have facilitated the entrenchment of mobile into consumer and commercial life, not least in the area of banking.

TESPOK –THE BASICS

VISION: To be an enabler of ICT growth and development.

MISSION: To be the leading association of choice in peering services and steering ICT development.

MAIN OBJECTIVES:

• To influence ICT policy and regulations by engaging government at the relevant levels.

• To address challenges faced by technology stakeholders and provide guidance on resolution mechanisms.

• To provide a forum for exchange of ideas amongst industry stakeholders and development of white papers.

• To manage the Kenya Internet Exchange Point in line with internationally accepted best practices.

CORE VALUES:

• Member centricity and brand visibility

• Integrity

• Inclusivity and empowerment

“The Kenya Revenue Authority’s Integrated Tax Management System is heavily dependant on the Kenya Internet Exchange Point for availability to the public and at the various custom points,” Asonga adds.

“The digital learning program has seen learners continue to access learning material and keep themselves busy, even after schools were closed several weeks back. The local internet traffic has increased, and service providers are being forced to upgrade their connections so as maintain the required quality of service parameters for the end users.”

Meanwhile, IoT developments are also advancing rapidly, another sign that Kenya is becoming one of Africa’s most well-connected countries.

But during these troubling times, the role of Asonga and TESPOK has shifted markedly, the organisation in constant dialogue with government as it attempts to coordinate the industry’s response.

“We are the partners behind the scenes making sure that communication continues to go uninterrupted,” she adds. “We are ensuring houses can continue to call hotlines and receive the most up to date information, an unsung hero role that is crucial in our country’s efforts to combat the outbreak.

“Our members and service engineers need to be on the ground, playing their part in unprecedented network upgrades and maintenance –we cannot afford for communications to stop running.”

And TESPOK itself is heeding the warnings issued by the Kenyan government.

116 | Africa Outlook issue 81 TESPOK

Connecting the World

More than 480 MILLION SUBSCRIBERS connected to the internet, China Telecom provides IP transit to bring you to the global internet from Africa.

With over 200 OVERSEAS POPS and more than 55T INTERCONTINENTAL CAPACITY, China Telecom deliver to every corner of the world.

As member of a major Internet exchange point in Africa, we are prepared to associate with you in KIXP/NAPAfrica/IXPN.

INFORMATION AND EXPERIENCES

Be it through holding seminars or issuing white papers, TESPOK is an active knowledge sharer as well as a guardian over the quality and level of internet access in Kenya.

The organisation has closed its offices until further notice in an attempt to minimise physical contact and slow the spread of COVID-19, its employees working from home and providing assistance in a number of areas, from technical support and new connections enquiries to escalations, queries and clarifications which are being handled by Asonga personally.

“We are also speaking with other associations from around Africa and other parts of the world,” Asonga says. “Sharing information and experiences in this way is vitally important, as we can learn from the likes of Italy and Germany who are at a more advanced stage in dealing with the outbreak.

“How are these associations helping to keep local internet traffic moving? This is what we need to learn.”

The CEO is hopeful the sector and wider economy will make it through the worst that is yet to come, the prospect of normal service resumed an inviting one that will see TESPOK continue its work representing the interests of Kenya’s telco players.

It has been doing so since 1999. Operating with a vision to serve as a key enabler of ICT growth and development, its current initiatives include the targeting of educational institutions to enable them to provide courses which teach the relevant skill sets required within the industry.

The association is also involved in addressing issues of professional conduct and standards of service within the industry, meaning its role has evolved into one of leadership and guidance, a factor which is especially pressing today as chief coordinator of the national industry’s response to the coronavirus outbreak.

As the pandemic continues to make progress, TESPOK will be at the centre of ensuring Kenya remains connected during this critical time.

TESPOK

Tel: +254 20 2245036 info@tespok.co.ke www.tespok.co.ke

mea@chinatelecomglobal.com China Telecom Africa and Middle East CTMEA2014
“SHARING
Africa Outlook issue 81 | 117 TECHNOLOGY
IN THIS WAY IS VITALLY IMPORTANT, AS WE CAN LEARN FROM THE LIKES OF ITALY AND GERMANY WHO ARE AT A MORE ADVANCED STAGE IN DEALING WITH THE OUTBREAK”

MediGuide is removing the geographical limitations of healthcare, its global network of partners and employees helping to bring on-demand diagnoses to patients in 152 countries around the world

Improving Outcomes with Alternate Opinions

118 | Africa Outlook issue 81 MEDIGUIDE INTERNATIONAL

I was always intrigued by the idea of people living longer and longer. In every year since 1983 – the year I entered the insurance industry – the average life expectancy of an individual living in our part of the world has extended by about three months.

“People are living longer, but the question is are they living healthier? When I started in the health insurance sector, it was a known fact that around 80 percent of the medical expenses spent on one person would come in the last 12-18 months of their life. If you lived until 78, fourth fifths of your medical expenditure would occur between 76.5 and end of life.

“What we don’t know, however, is that if we now live until 85, does this same 80 percent come between 83.5 and 85, or are we still suffering from conditions at the age of 76.5 and now have treatments sophisticated enough to treat those conditions and continue living?”

Paul Vermeulen, CEO of MediGuide International, is well aware of the challenging landscape facing health insurance companies.

Much like its fellow subsectors, health insurance has always been evidence-based, where a statistical analysis of what has gone before is used to predict what will happen now and into the future. However, owing to the

ongoing and rapid advances being made in medicine and its associated technologies, such a model is becoming increasingly hard to manage.

“In order to keep up with every single new innovation, medical practitioners would have to dedicate 36 hours to studying every day,” Vermeulen explains. “Of course, not only are there not 36 hours in a day, but doctors spend almost all of their time seeing patients.

“No single physician is able to comprehend the vast transformation we’re currently seeing in healthcare, and insurance companies are in the same boat, squeezed into a similarly difficult position where they have

Africa Outlook issue 81 | 119 HEALTHCARE

to predict outcomes that are often unpredictable.

“Each new drug might be 10 times more effective and expensive than current market alternatives. Yet insurance firms can only set their premiums based on what they know.”

MediGuide International is one organisation helping to navigate this testing environment.

A leading global health services firm, it proactively serves the trio of parties involved in this evolving healthcare dynamic – the insurance companies, the hospitals and the patients – by finding the closest way to the cure through alternative insights, treatment protocol advice and medical second opinions.

Its remote services remove the traditional geographic limitations of medicine, providing patients with quick access to critical information on a range of treatment options available across the globe on a 24-seven basis.

Indeed, its offering has become a

hugely important part of the global healthcare ecosystem.

The Chief Exec affirms: “In 95 percent of cases where we offered patients a medical second opinion last year, there was a change in the treatment protocol. In 14 percent of cases surgery was avoided, and four percent of the time the diagnosis actually changed.”

POWERED BY EMPLOYEES AND PARTNERS

So how is MediGuide International able to offer such valuable services around the world and around the clock?

A multitude of factors combine to uphold this customer-centric approach, Vermeulen first pointing to the dedicated team of clinical practitioners ensuring it is able to cater to an array of countries and time zones.

“Our nurses deal with patients all around the world at any time of day,” he affirms. “They don’t work all day every day, of course, but you’d

MEDIGUIDE INTERNATIONAL OPERATING IN 55 COUNTRIES SERVICING 152 COUNTRIES 10 MILLION TOTAL MEMBERSHIP 95% CASES RESULTING IN ALTERED TREATMENT PROTOCOL 14% CASES RESULTING IN SURGERY AVOIDANCE 4% CASES RESULTING IN A DIFFERENT DIAGNOSIS MEDIGUIDE INTERNATIONAL 122 | Africa Outlook issue 81

Ctravellers assistance for more than 48 years. We are available 24 hours a day 365 days a year, with 74 offices spread around the world, 1,300 collaborators and medical suppliers in more than 190 countries.

We are in constant evolution thanks to a profound digital transformation led by a human team eager to break paradigms to guarantee solutions according to travellers’ new needs through our providers in the communities where we operate.

We manage the world’s largest global network of highly qualified providers who are ready to solve a wide range of problems, from the simplest to the most complex ones. Our clients only need one contact, either by telephone, our website, or through our own mobile app to get in touch with us and get the solution they need.

Technology plays a crucial role in the travellers’ assistance industry since nowadays, traveling experience is mostly a digital experience. We are allies when the traveller is already in motion, and it is our goal to provide them with complete digital assistance. Therefore, we regard technology as one of our company’s competitive advantages. IT is a key ally to achieve our strategic goals and to position us as leaders in the market.

human factor above all: How to make the traveling experience a more pleasant one? From there on, we work to provide excellent technological tools, with greater functionalities.

An example of this is our APP, always updated to include the latest innovation in customer experience. This APP includes TELAfricaD, a remote medical assistance service, that allows you to have a video call with a physician or pediatrician any time no matter where ever you are. It also provides LOOP, a platform of augmented reality to maximise travellers’ experience worldwide.

Our spirit as an organisation is to be one step ahead, creating the future, as opposed to adapting to it. It is not only knowing what it is that consumers want, but understanding what they might wish. Innovation is not only technological, it is also about people and opportunities.

Pioneers in assisting travellers since 1972. Anytime, anywhere and for any reason.

SERVICE EXCELLENCE

MediGuide’s portfolio comprises four key service offerings. These include:

MEDICAL SECOND OPINION

MediGuide’s medical second opinions provide an alternate evaluation of a patient’s condition that occurs remotely, with a specialist team of expert multi-disciplinary physicians at world-leading medical centres helping to offer insight into different treatment options within 10 days.

LIFELINK

Covers all costs of travelling to world-leading medical centres on the MediGuide network so that patients can receive retreatment, regardless of location. This includes business class flights, accommodation for the patient and one companion and other related costs covered up to the value of $1 million.

NAVIGATOR

An alternate package to LifeLink, Navigator ensures the patient’s route from treatment to optimal healthcare outcome is as hassle-free as possible, using MediGuide’s cost containment and re-pricing strategies that can help to save considerable treatment costs, which can be substantial if treatment is financed with personal funds.

MEDIORBIS

A third package, MediOrbis offers on-demand telAfricadicine services, allowing patients to receive expert advice remotely from this same network of world-leading practitioners.

be surprised to hear the number of instances where our people wake up at 3:00am in the US to take a call with one of our members when its 3:00pm in China.

“They work relentlessly, tirelessly and without fail in order to assist our members. I’m continuously blown away and humbled by their efforts, and our customers are incredibly thankful for all the work that they do.”

MediGuide’s net promoter score (NPS) provides the best evidence.

Across all communications and interactions with customers last year, the company received positive feedback in 99.13 percent of cases – a figure almost unheard of in the industry.

“Our NPS score was in the 97th percentile in 2018, and at that time I thought we can only go down from here, right?” Vermeulen adds. “But amazingly, despite having doubled the number of cases that we took on year over year, our customer satisfaction rating actually went up.”

124 | Africa Outlook issue 81 MEDIGUIDE INTERNATIONAL

Aside from this esteAfricad workforce, other partners are also helping to uphold MediGuide’s handsome reputation.

Organisations such as Assist Card in Latin America and Greater China and Coris in Europe are a crucial part of the MediGuide backbone, placing their unwavering trust in the company as it expands into new regions, despite it often taking some time for its value proposition to establish major presence.

Likewise, the company also works directly with world-leading healthcare centres and medical professionals across the globe, such as the Harvard Medical School and Boston Children’s Hospital, that support its on-demand MediOrbis service.

“The relationships we have with these parties are extrAfricaly important,” Vermeulen iterates.

“To give you an example, I was at a family gathering on December 23, and received a phone call from someone explaining that their colleague urgently needed brain surgery. They asked us for a medical second opinion, and within six hours we were able to provide them with one thanks to the help of our partner MediOrbis and a leading neurosurgeon from the Cleveland Clinic in the US.

“When it’s urgent and when it’s really important, often under difficult circumstances, we know that we can rely on these partners, for which we are trAfricandously grateful.”

Insmart

Insmart is a leading Third-Party Administrator (TPA) in Vietnam, specialising in providing healthcare claims administration service for the insurance industry, managing and ensuring individuals and corporate alike are accorded with a seamless health experience and timely claims reimbursAfricant. Our key areas of expertise are:

• Third party administrator (TPA) or healthcare claims administrator

• Corporate employee health benefits administrator (EBA)

• Health and wellness administrator (HWA)

• Chronic disease managAfricant programme (CDMP)

As MediGuide’s exclusive distributor and TPA for one of its core MSO product in Vietnam, Insmart’s vision is to ensure MSO is available to all and empower the insured with the knowledge of disease and treatment protocol available to provide them with a peace of mind.

To find more detail of our services, please contact via: +84-2873-089990 (117) or info@insmart.com.vn FMI

At FMI, (a division of Bidvest Life Ltd), we believe in listening to real South African’s stories to continually innovate and improve our products in order to meet our customers’ individual needs.

We understand that when faced with a devastating injury or illness, our customers want peace of mind that their diagnosis is correct and that they’re getting the best possible treatment available. You can’t put a price on that.

That’s why we partnered with MediGuide International to offer Medical Second Opinions (MSOs) to all our FMI individual policyholders, at no additional cost.

www.fmi.co.za

MEDIGUIDE INTERNATIONAL 126 | Africa Outlook issue 81
“WHEN IT’S URGENT AND WHEN IT’S REALLY IMPORTANT, OFTEN UNDER DIFFICULT CIRCUMSTANCES, WE KNOW THAT WE CAN RELY ON THESE PARTNERS, FOR WHICH WE ARE TRAFRICANDOUSLY GRATEFUL”
Claim Administration Medical Second Opinion Health Screening Administration Genomic Screening Tele-Health Chronic Disease Management Medical Concierge To find more detail of our services: T+84-2873-089990 (117) E info@insmart.com.vn HEALTHCARE Africa Outlook issue 81 | 127

BRIDGING THE GAP

MediGuide’s stature is not only testament to the admirable efforts of its suppliers, partners and employees. Likewise, the company’s own strategic emphasis helps to play a part in maintaining its leading position at the forefront of the global healthcare market.

Right now, this approach comprises an extensive, ongoing digital transformation. Here, the company has been investing heavily in streamlining and digitalising its services, thereby bolstering its customer service offering by introducing an app and opening up new channels of communication.

It has been collaborating with Medicus AI, for example – an enterprise interpreting and translating medical reports and health data into easy-to-understand insights – in order to overcome the barriers that it faces by working as a global healthcare firm.

“Let’s assume that tomorrow we have to set up a programme in Serbia for one of our insurance clients, and that programme includes telAfricadicine,” Vermeulen muses. “They’ll have immediate access to doctors overseas, which would create some complexities owing to language barriers.

“We cannot expect that everybody in Serbia speaks English, so we have to

Paramount Health

The brain child of Dr Nayan Shah, Paramount Health Group started its journey in 1996 and today is one of the leading third party administrators (TPA) in India and a recognised managed care service provider in the global market.

With its focus on quality customer service and expertise in claims managAfricant, Paramount operates in 165+ locations in India, touching more than 52 million lives.

Our vision is to connect the healthcare ecosystem and its key players with technology, quality, innovation and effective medical managAfricant across the globe.

www.paramount.healthcare

“WE HAVE TO GIVE PEOPLE OPTIONS. IN SOME MARKETS THERE IS A SHORTAGE OF DOCTORS, OR A WAITING LIST. IF YOU WANT TO SEE A SPECIALIST IT CAN TAKE SIX WEEKS IN URGENT CASES, AND OTHERWISE MONTHS”
128 | Africa Outlook issue 81 MEDIGUIDE INTERNATIONAL
Dr Nayan Shah

Our array of Healthcare Services

• Cross border healthcare-Inbound and Outbound with 24x7x365

• Business Process Outsourcing of medical claims

• Medical Second Opinion

• Parahome Care - Provision of Healthcare Services at Home

• IT software integration and development

- Enhancement and Improvisations on the Digitized Health Space

• Medical Value (Travel For Non Insured)

• Servicing of Self Funded groups

• Management Consultancy services

• Medicine Supply Services

• Wellness Services and Concierge Services 401-402, Sumer Plaza, Marol

ensure simultaneous translations are provided. This is where Medicus AI is helping us.”

Another barrier stems from legalities.

Doctors in the US can’t order a prescription in Serbia because of legal limitations and because the names, recommended dosages and contents of drugs are going to vary across borders. Therefore, MediGuide has established a network of local partners around the world, ensuring it is able to uphold its services effectively across hundreds of different countries.

“Usually when people come to us seeking help they aren’t suffering from the flu,” the Chief Exec comments. “They usually come with life threatening situations, orthopaedics, fertility issues – a lot of different things, but it’s always serious.

“We have to give people options. In some markets there is a shortage of doctors, or a waiting list. If you want to

Welcome to the world of Paramount. This is where the essence of commitment, quality, and integrity blend together to offer world-class health services across the globe. Established in the year 1996, Paramount began by unfolding its Third Party Administration (TPA) services at a time when the concept of TPA itself was in a nascent stage. With the breadth and depth of experience, it has focused on resolving some of the most sensitive & complex healthcare problems. Maintaining highest standards of reliability and excellence have long been the hallmarks of its services.

With extensive competence in clinical care, healthcare technology, and a global resource base, Paramount has been consistently delivering bestin-class solutions at an unrivaled cost advantage to clients from several domains. Wide array of services offered includes beneficiary enrollment, claim settlement, cashless hospitalization services, call center solutions, medical underwriting, and overseas support.

As globalization is rapidly shaping up the world, Paramount has expanded horizons to offer affordable quality care services to clients ranging from insurance companies, corporates, government organizations, and selffunded groups. Having proved its competence in the world of medical insurance, it is now making inroads into various other healthcare services, such as cross border healthcare services, disease management programme, elder care programme, medical recruitment services, claims investigation, pre-insurance health checks, medical underwriting, corporate health portfolio management services, KPO & BPO solutions, school health programme, and value added health packages to name a few.

see a specialist it can take six weeks in urgent cases, and otherwise months. So, we are trying to provide solutions for those in real need and are doing this with the help of our partners by expanding our digital gateway.”

Ultimately, through taking these strides, the company will be better placed to continue to help bridge the broadening gaps in healthcare, this latter topic forming the basis of Vermeulen’s conclusion as he ends our conversation with an optimistic yet realistic perspective.

“Look at a country like the UK. It spends roughly 10 to 11 percent of total GDP on healthcare, and has a GDP per capita of roughly £30,000,” he explains. “Now take a look at Poland – their GDP per capita is roughly half of the UK’s, and the government’s margins only allow it to spend around seven or eight percent of total GDP on healthcare.

“You can see how the health gap in

different markets is growing, but we’re trying to offer those who have the capacity to buy an insurance policy in markets like Poland to overcome such situations by enabling access to Western European medicine at an affordable insurance premium rate.

“The unfortunate reality is that there are many people who can’t afford this – it’s something that’s sadly unavoidable. But we will always try to help where we can and improve the healthcare situations of those people who come to us in serious or life-threatening situations all over the world.”

MEDIGUIDE INTERNATIONAL

Tel: +1 (302) 425 5912 info@mediguide.com www.mediguide.com

Road,
(East), Mumbai 400
| Fax
4280 | Whatsapp No
7718806681 | Email
Maroshi
Marol, Andheri
059, India Tel +91 22 40004219/216
+91 22 4000
+91
travelhealth@paramount.healthcare
Headquartered in India, with presence in 27 states and 165 locations along with a robust base of medical professionals, Paramount is servicing healthcare needs of clients around the world. Over the years, it has carved a niche for itself with its superior services. The quality of venturing into pioneering services has enabled it to successfully service 52 million lives till date.
Africa Outlook issue 81 | 129 HEALTHCARE

High-Class Hardware

The recent hardships facing South Africa have been well documented. The country’s political transition since 1994 is renowned as one of the most remarkable political feats of the past century, yet, from an economic standpoint, overall progress has slowed in the past half-decade.

The South African economy has failed to grow by more than two percent in any year since 2014, and once population growth is factored in, per capita growth has been close to nil throughout this entire period.

There’s always a silver lining, however. Within this climate, certain businesses have shown incredible adaptability and proactivity in overcoming numerous hurdles, local tool and hardware wholesaler Matus standing as a prime example of the ingenuity that can be derived from the need to make the best of a somewhat stagnant situation.

“South Africa’s a tough market to be operating in at the moment, no question,” explains Sibusiso Khumalo, the company’s Product and Marketing Executive. “The industrial goods sector has become increasingly saturated, making it harder and harder to stand out from the crowd.

“Amidst some customers battling through financial hardships, we understand that people will sometimes opt for cheaper options available on the market. In order to strengthen our differentiation, we have been working hard to ensure that we continue to offer great service at a fair value across our entire product range.”

So how exactly does Matus set itself ahead of the field? In the eyes of Khumalo, this is down to the diversity and quality of the company’s offering coupled with a unique culture.

“First, our products,” he states. “Not only do we offer customers our own brand tools, but those of our exclusive partner brands and non-exclusive partner brands as well. The choice we provide is honestly unmatched in the industry and, regarding product quality from our compressors to homologation on dust masks, the quality and compliance of our entire range is of the highest standard.

“Second, we are part of the Bidvest Group, benefitting from strong backing from one of South Africa’s leading corporations. Through this, we’re able to strike a balance between maintaining Matus’s originally family-led values and improving our performance year

THE WHO, WHAT & WHERE OF MATUS

Inaugurated in 1942 by brothers Lukie and Sam Matus, the organisation has risen to become the number one trusted tool and hardware partner serving the industrial, construction, agricultural, retail DIY and mining sectors with its vast and growing range of products.

Owned by the Bidvest Group, the company today serves not only SA but equally Lesotho, Namibia, Swaziland, Botswana and other countries across the Southern African region, headed up by newly appointed CEO Robin Coen.

OWN BRANDS: MTS, MAT-Weld, MAT-Safe, MAT-Air, Fox, Fascor and Mobi-Jack.

EXCLUSIVE BRANDS: Euroboor, Freemans, Groz, HiKOKI, Kendo, Stahlwille, Sykes-Pickavant and more.

VISION: To be the supplier and distributor of choice for tools, hardware and related equipment to the DIY and industrial markets.

MISSION: To build mutually beneficial partnerships with customers, staff and suppliers.

after year.
Matus is a cut above when it comes to wholesale hardware quality, the company continually striving to improve on its products, customer engagement and technological proficiency
130 | Africa Outlook issue 81 MATUS

“That combination keeps things fresh and exciting. What keeps us up at night is not a focus on price – it’s thinking about how to always provide greater value to our customers and remain sustainable.”

MEETING MARKET NEEDS

This strategic emphasis on continual

improvement is best reflected by an extensive array of diversified investments that the company has been pursuing of late.

Digital transformation is one such category within this, its efforts concentrated on leveraging critical technologies such as data analytics in order to better be in touch with the

demands of its customers and end users.

“How can we better understand customer behaviour and increase customer engagement by looking at digital activities? These are the sorts of areas we’re exploring,” Khumalo explains.

RETAIL
Africa Outlook issue 81 | 131

SOCIALLY RESPONSIBLE

Donating products to schools, particularly those serving South Africa’s underprivileged youth, is just one way in which Matus focusses on corporate social responsibility.

“We also sponsor some of these colleges,” Khumalo reveals. “The idea is to invest in programmes that are actually meaningful rather than just couriering in money and walking away, particularly in the hometowns of our staff.

“We recently spent the entire day with some school children, for example, providing them with presents and toys, and donated medical support equipment for those suffering with disabilities.”

1862.

“Because we’re a wholesale distributor, it can be tricky for us to create direct channels with the end users. But these technologies will help us – we recognise that the best way to keep customers coming back to us is when the end user continues to specifically request our products.”

As part of its attempts to create such a dynamic strategy, Matus continues to work with colleges and schools from across South Africa by training and donating products to them in some cases. In doing so trainee industrial professionals familiarise themselves with its tools and brands, which thereby become the brands of choice from the outset. Further, the enterprise is constantly looking to plug any gaps in the market.

“Within our MAT-Weld range we recently released a 230-amp welder, offering this at the same price point as a 200-amp model,” Khumalo states. “And we’re constantly reviewing our packaging to ensure it’s as attractive and informative as possible.”

STAHLWILLE

Professional Tool Solutions. Made in Germany!

For over 150 years, the name STAHLWILLE has been a byword for innovative premium handtools that are »Made in Germany«. With its intelligent torque technology and tool systems, high-grade tightening tools and individual solutions for tool storage in a modern design, STAHLWILLE continues to redefine standards.

The company unites all the outstanding features of traditional German forging, state-of-the-art production techniques and digital technologies.

Successful as these efforts have been, Matus can’t claim all the credit for its recent strides. And indeed it doesn’t, the Product and Marketing Executive pointing to the vital role of its employees, partners and suppliers.

“Between our experienced, knowledgeable staff who have been here for 20 or even 30 years in some cases and the new talent that we’re bringing in all the time to keep new ideas flowing, we have a fantastic mixture in our workforce,” he affirms.

“Likewise, our correspondence with customers is equally important. In some surrounding countries, for instance, we have an amazing relationship with local partners – distributors which helps us in spreading our products across the country.

“I think this is one of our strengths. We pay a lot of attention to these clients as they allow us to deliver stock to central locations before selling them throughout each respective region.”

132 | Africa Outlook issue 81 MATUS
PREMIUM TOOL SOLUTIONS. SINCE

PREMIUM TOOL SOLUTIONS. SINCE 1862.

IMPROVING THE PLATFORM FOR GROWTH

In support of the latter, Matus has created a network of five sizeable distribution centres throughout South Africa to make life easier for its customers.

“We’ve seen that these companies often don’t have the capital to hold large amounts of stock, but they still want to cater to the needs of their own customers on demand,” Khumalo comments. “These centres allow us to be closer to our customers, which helps them better meet their own clients’ needs.”

Moving forward, these distribution centres will form a large part of the organisation’s continual improvement efforts.

At its site in Durban, the firm is undertaking a major new build initiative aimed at improving efficiencies across picking, packing and the moving of products that is hoped to be complete in August 2020. Once successful, the company will then begin similar initiatives at its flagship Johannesburg hub.

“Like every company we want to grow, and these facilities upgrades or new builds are a major part of that process,” Khumalo states, ending our conversation on an optimistic note as his attention turns to the future.

“For the very same reason, we’ll continue to enhance our technologies, our customer relationship management systems, our use of intelligent data, and look for new opportunities both in South Africa and beyond.

“The support we get from Bidvest,

our internal stakeholders and our partners places us in good stead to achieve in each of these areas. We want to become more relevant in new markets and are certainly excited for the coming years.”

MATUS

Tel: +27 11 681 9440 info@matus.co.za www.matus.co.za

Africa Outlook issue 81 | 133 RETAIL

What

approach to recruitment and staff development?

“CMC endeavours to incorporate employees of varying gender, age, religion, race, ethnicity, cultural background, sexual orientation, religion, languages, education and abilities in its sourcing agenda in order to not only improve on its reputation and promote inclusion, but to enhance its competitive advantage.

“This will be achieved through greater innovation – new ways of doing things, increased creativity associated with millennials, and better decision making. Researchers have found that when diverse teams make business decisions, they outperformed individual decision-makers up to 87 percent of the time.

“Moreover, we have benefited from a variety of different perspectives arising from diverse cultural backgrounds through higher employee engagement, improved talent acquisition rates and reduced employee turnover, where employees feel accepted and valued.”

“Our staff are our most important asset and we promote our extra miles mindset through different award ceremonies that assist in talent retention. We are also developing team building events, which can create real synergies and team spirit, and view external and internal training sessions as essential to the personal development of our team members.

“I am a true believer of promoting from within. As managers, we have a mandate to continue building NAS for tomorrow by helping our team members to realise their full potential.”

“Johnson Crane Hire is a learning organisation and has various staff training initiatives overall. The company is a registered training institute for mobile crane operators in terms of the South African Occupational Health and Safety Act of 1994.

“Our Broad Based Black Economic Empowerment (BBBEE) initiative also includes the Learnership Programmes, which is a formal qualification in lifting machine operations.”

“We offer our staff opportunities to work across Southern Africa and are proud to see our Zambian warehousing operators and specialists taking the chance to be sent out to Malawi, South Africa, Tanzania and Mozambique. This provides them with exposure and is an advantage over our competitors as our employees are able to really understand the full supply chain, not just those in their countries of origin.

“Further, we constantly promote training and learning in order to maintain our level of excellency and retain key talent.”

is your
Are you a CEO/Director with a company story to tell? Contact Africa Outlook now!
THE FINAL WORD 134 | Africa Outlook issue 81
To round off each issue, we ask our contributing business leaders for their views on the same question

Encouraging impactful financial protection...

National Insurance Commission Ghana has told its story.

Now, why not tell yours? Our monthly magazine Africa Outlook is essential reading for business executives wanting to keep up with the latest in global news and trends affecting African businesses across all industries. With a monthly coverage of over 185,000 readers, your company can take advantage of exposure in Africa Outlook with a FREE article and FREE digital brochure, as well as access to further digital and print-based marketing tools that could transform your business. To share in this unrivalled opportunity, contact one of our project managers today!

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See page 22 36 www.africaoutlookmag.com Issue 81 NAS AIRPORT SERVICES Achieving the taste of excellence INSPIRING

Outlook Creative Services

Complementing the production of Africa Outlook, Asia Outlook and EME Outlook magazines, Outlook Publishing’s award-winning in-house team

is now utilising these same specialist production skills to offer a full and bespoke range of editorial, design and marketing services via its new Outlook Creative Services division.

For more information on how we can work with you in providing a plethora of completely flexible and customisable production services, please visit: www.outlookpublishing.com/creative-services

DESIGN:

Stephen Giles +44 (0) 1603 959 656 steve.giles@outlookpublishing.com

Devon Collins +44 (0) 1603 959 661 devon.collins@outlookpublishing.com

EDITORIAL:

Tom Wadlow +44 (0) 1603 959 657 tom.wadlow@outlookpublishing.com

Jonathan Dyble +44 (0) 1603 959 660 jonathan.dyble@outlookpublishing.com

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