Africa Outlook - Issue 83

w w w. a f r i c a o u t l o o k m a g . c o m

THE VIRTUOUS CEMENT CYCLE Edney Vieira, Chairman & CEO of Cimentos de Moรงambique, on how the firm has been creating opportunities for people and communities for 95 years

Issue 83

AFRICA LOGISTICS PROPERTIES Driving an infrastructure revolution

TIGER ANIMAL FEEDS AND TIGER CHICKS Fuelling Zambian farming through nutritional and technical support

Arieh and Nachson Mimran, Co-Founders of To.org, explain how different investment types can be used as a catalyst for change

travel magazine T

he 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.

ISSUE 03

OMAN

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.

SIMPLE WAYS TO TRAVEL MORE SUSTAINABLY

Desert views and Bedouin culture

MALAWI

Africa’s warm heart

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.

Five easy tips

YOUR TRAVEL GUIDE TO

ROMANIA

Interview with Stu McKenzie, award-winning photographer, army veteran and Fellow of the Royal Geographical Society

THAILAND TRAVEL GUIDE

THAILAND

MALAYSIA TRAVEL GUIDE

This Southeast Asian country is a perennial favourite, thanks to an intoxicating combination of beautiful beaches, world-renowned cuisine and incredible temple complexes

M A L AYS I A

Writer: Dani Redd | Project Manager: Jordan Levey

K

nown as the ‘Land of Smiles’, Thailand is a friendly country that welcomed 38.27 million tourists to its shores last year.

There are plenty of reasons why this Southeast Asian destination is so popular.

For a start, there’s the beaches. In the south, Thailand’s two coastlines stretch for miles, populated by swathes of icing-sugar soft sand, the bays speckled with dramatic limestone formations. Thailand is also home to 1,430 islands, ranging from full moon party spots like Koh Pha Ngan to the more off the beaten track Similan Islands, a national marine park popular with scuba divers.

Then, there’s the food. Thailand’s noodles, stir fries and curries are beloved around the

world, characterised by the fragrant taste of lemongrass, kaffir lime leaves and tulsi. Every town is bursting at the seams with floating markets, street food stalls and high-end restaurants where you can try delicious local dishes.

Thailand’s rich spiritual heritage also attracts tourists. Golden temples and larger-than-life Buddha statues can be found across the country. Visitors can experience colourful religious festivals in the northeast of the country or explore the underground cave shrines in Kanchanaburi and Phetchaburi.

Despite Thailand’s popularity, it’s easy to find a quiet corner to relax, be it on a deserted island or an eco-retreat in the craggy mountains north of Chiang Mai.

Malaysia is a melting pot with a unique culture, a world-renowned food scene and a spectacular landscape of islands, ancient rainforest and mountains Writer: Dani Redd Project Manager: Joe Palliser

NAMIBIA TRAVEL GUIDE

T

here are many reasons why Malaysia is a tourist favourite.

For a start, there’s the landscape. Imagine 878 islands, ringed with white sand beaches leading down to translucent waters. Vibrant coral reefs lie just offshore, home to a profusion of marine life. Inland are ancient rainforests, the shaded canopy seemingly impenetrable.

Take a guided walk to learn about this habitat’s astonishing biodiversity.

You might even catch sight of a tapir, or a silver-leafed monkey swimming through the jungle canopy.

Outdoor enthusiasts will also relish tackling some of region’s towering granite mountains or exploring the intricate networks of limestone caves.

Then, there’s the culture. Malaysia

is a melting point of Malay, Indian, Chinese and aboriginal groups (Orang Asli). There’s a packed calendar of religious festivals, including Wesak, or Buddha’s birthday, celebrated with processions of flowers and candles.

Cities such as Melaka and Georgetown boast fascinating heritage districts where you can experience this fascinating fusion for yourself. Make sure you take time out to try Malaysia’s delicious cuisine, which reflects its multicultural population.

Of course, Malaysia has a modern side too. It can be found in the SEYCHELLES malls, skyscrapers and fine dining TRAVEL restaurants in larger cities, such as the GUIDE capital Kuala Lumpur.

S E YC H E L L E S Most people visit this archipelago in the Indian Ocean for the beaches, but it has much more to offer than that Writer: Dani Redd | Project Manager: Jordan Levey

D

escribing the Seychelles, it’s easy to veer into cliché. These picture-perfect islands are blessed with white sand beaches lapped by translucent water, fringed with palm trees and interesting rock formations. The dramatic sunsets, laidback atmosphere and a wide range of luxury accommodation make them a popular spot for honeymooners.

The Seychelles consists of 115 islands and some small islets, located

NAMIBIA Namibia is a country of rugged, otherworldly landscapes; a desert realm with a complex history and culturally diverse inhabitants Writer: Dani Redd | Project Manager: Joe Palliser

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amibia is known for its sparse, otherworldly landscapes. It gets its name from the Namib, the world’s oldest desert; a sparse, windswept region extending 1,900 kilometres down Africa’s Atlantic coast. The desert is characterised by its red dunes, which plunge down towards the ocean at Sandwich Harbour and Skeleton Coast. It’s also known for its white clay and salt pans, such as Deadvlei, where there are hundreds of ossified trees.

Another scenic spot in the desert is Moon Landscape, named after its eerie, pockmarked topography.

But sightseeing in Namibia isn’t just about deserts.

Inland you’ll find the green-gold grasslands of the Kalahari, and rugged mountains such as the Brandberg, Spitzkoppe and Damaraland.

Tourists flock to Namibia to experience its remote corners. Hot air ballooning, sand boarding and offroad quad bike excursions are all popular activities.

When it comes to safaris, Namibia offers some unrivalled experiences – head to Etosha National Park to see big cats, elephants and black rhinos.

Namibia has a fascinating history. It was inhabited as early as 25,000 BC, with tribes such as Ovambo and Herero gradually migrating into the country. In the “Scramble for Africa” Namibia became a German colony, known as German South West Africa, in 1884. After over a century of bloody battles, Namibia finally gained independence in 1990. These days it’s a country rich in historical attractions and cultural diversity; a country with plenty of stories to tell.

www.outlooktravelmag.com

in the Indian Ocean at a crossroads between Asia and Africa. Most of the action is concentrated around the three major islands: Mahé, La Digue and Praslin. Mahé is the largest and most populous; home to the capital, Victoria, and transport hub to the rest of the islands. La Digue is renowned for having some of the best beaches in the archipelago. Praslin, meanwhile, is home to the idyllic Vallée de Mai nature reserve.

But there’s more to the Seychelles

than just the beaches. Trek through the granite mountains and lush rainforests of the Morne Seychellois National Park. Try some of the island’s traditional Creole dishes at a local restaurant. Or if you’re a nature lover, head to Bird Island to observe its population of fairy terns and common noddies, as well as the giant Aldabra tortoises endemic to the archipelago. You’ll be bowled over by what the Seychelles has to offer.

WELCOME

(Re)building Nations

EDITORIAL Editorial Director: Tom Wadlow tom.wadlow@outlookpublishing.com Editor: Dani Redd dani.redd@outlookpublishing.com PRODUCTION Art Director: Stephen Giles steve.giles@outlookpublishing.com

As 2020 rapidly disappears before us, each passing month confirms that the social and economic fallout from COVID-19 will be felt for far longer than we might have anticipated.

Senior Designer: Devon Collins devon.collins@outlookpublishing.com Junior Designer: Matt Loudwell matt.loudwell@outlookpublishing.com 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 Callam Waller callam.waller@outlookpublishing.com Vivek Valmiki vivek.valmiki@outlookpublishing.com SALES MANAGERS Donovan Smith donovan.smith@outlookpublishing.com Josh Hyland josh.hyland@outlookpublishing.com Ryan Gray ryan.gray@outlookpublishing.com PROJECT MANAGERS Kyle Livingstone kyle.livingstone@outlookpublishing.com Lewis Bush lewis.bush@outlookpublishing.com Sam Love sam.love@outlookpublishing.com

ADMINISTRATION Finance Director: Suzanne Welsh suzanne.welsh@outlookpublishing.com Finance Manager: Sophia Curran sophia.curran@outlookpublishing.com Office Manager: Daniel George daniel.george@outlookpublishing.com CONTACT Africa Outlook East Wing, Ground Floor, 69-75 Thorpe Road, Norwich, Norfolk, NR1 1UA, United Kingdom.

Sales: +44 (0) 1603 959 652 Editorial: +44 (0) 1603 959 657 SUBSCRIPTIONS Tel: +44 (0) 1603 959 657 Email: tom.wadlow@outlookpublishing.com www.africaoutlookmag.com Like us on Facebook: facebook.com/africaoutlook Follow us on Twitter: @africa_outlook

Entire economies will need jumpstarting or rebuilding altogether, while societies will need to be given the confidence to interact with each other once more. As Aristotle famously cited, we are by nature a social animal, and a real danger emerging from this crisis is that such sociability could be replaced by fear.

However, we cannot ignore efforts made by people, governments and businesses to maintain a degree of ‘normality’ and keep the wheels moving, and once more we shine a light on organisations facing a variety of different challenges caused by the pandemic.

Our cover story comes from Mozambique, where almost all of its 20th and 21st century infrastructure carries the cement stamp of just one organisation.

For almost 100 years, state-run and now privately owned Cimentos de Moçambique has been producing this vital building material all over the country, a defiant constant during a tumultuous recent past which has effectively helped to build a nation from the ground up.

“There are some [COVID-19] cases here, but we are fortunate to not have suffered with a huge outbreak like countries in Europe or the USA, although every fatality caused by COVID-19 is a tragedy that we cannot ignore,” Chairman and CEO Edney Vieira tells us.

“The virus has also had its impact on us financially – we have felt it in terms of sales, but I am optimistic about getting through this and looking ahead to a more prosperous time.”

We also explore the cement industry in Congo through an interview with regional leader Dangote, while at the end of this edition you will find a fascinating digest from the Centre for Infectious Disease Research in Zambia, whose testing capabilities will prove vital in the country’s fight against coronavirus.

Other industries examined this issue include mining, water, agriculture and tourism, as well as an exclusive interview with brothers and Co-Founders of To.org, Arieh and Nachson Mimran, who explain how different forms of investment can be used as a catalyst for change.

Enjoy the read!

Tom Wadlow Editorial Director, Outlook Publishing Africa Outlook issue 83 | 3

CONTENTS

10 112

116 REGULARS

6 NEWS

8 14

112 Project Africa – Ethiopia

8 EXPERT EYE

Seizing Ethiopia’s Construction Opportunitiesportfolio

Energy infrastructure in Africa – beyond cables

BUSINESS INSIGHT

10 Renewable Energy

The $24 Billion Opportunity How off-grid solar and fintech can transform the lives of millions

A virtual gathering of data experts

116 Africa Oil & Power A forum for investing without boundaries

118 Africa Energy Forum Relocating to Amsterdam

An interview with Nick Brown, Co-Owner and Co-Founder of Latitude Hotels

A global forum for food and agriculture buyers and sellers

TOPICAL FOCUS

122 THE FINAL WORD

20 Sustainability

Investing in Change The unlikely pairing of creative activism and venture capitalism

4 | Africa Outlook issue 83

114 Data and Analytics Virtual Summit – West Africa

14 Tourism

The Business of Tourism

20

EVENTS

Around Africa in seven stories

120 Market Access Africa

What or who has been a source of inspiration for you during your career?

AFRICA OUTLOOK MAGAZINE

F E AT U R E S

24 SHOWCASING LEADING COMPANIES Tell us your story and we’ll tell the world

CONSTRUCTION ​

26 Cimentos de Moçambique

The Virtuous Cement Cycle Building Mozambique for 95 years and counting

36 Dangote Cement Congo​ Bringing the Dangote Way to Congo

Contributing to economic and social prosperity

44 Cemza

​Made to Last ​ aising the cement bar in the Eastern and R Western Capes

26

AGRICULTURE

ENERGY & UTILITIES

50 Tiger Animal Feeds and Tiger Chicks

​Let’s Solve Water

Nourishing Growth

Fuelling Zambian farming through nutritional and technical support

58 Yara Côte d’Ivoire

Keeping it Green in Côte d’Ivoire Boosting crop yields through sustainable products and practices

MINING

64 Londani Coal

​Powered by More than Coal A story of expansion and empowerment​​

90 Xylem Africa ​ one-Africa approach to water A management

SUPPLY CHAIN

​The Dawn of New Age Logistics Driving an infrastructure revolution

FINANCE

102 Mainstreet Microfinance Bank

70 Rocksure International

Driving Financial Inclusion in Nigeria

Ghana’s Gold Standard

Powered by customer-centric technology

Celebrating 10 years of mining service excellence

HEALTHCARE

76 B ​ lack Royalty Minerals​ ​ Beacon for Quality and A Responsibility

​ ontributing to socioeconomic C development in Bronkhorstspruit and beyond

44

96 Africa Logistics Properties

106 Centre for Infectious Disease Research in Zambia (CIDRZ)

58

​Making Healthcare Accessible​ ​ t the forefront of Zambia’s medical A progression

OIL & GAS

84 Lerexcom Petroleum Fuelling Development in the DRC

DRC’s young, dynamic petroleum provider

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NEWS Around Africa in seven stories…

ECOMMERCE

DPO Group and Mastercard in bid to shift African businesses online

TELECOMS

VODACOM REPORTS STRONG REVENUE AND CUSTOMER GROWTH FOR 2019 South African telco Vodacom has recorded a revenue rise of 4.8 percent for the financial year ending March 31, 2020.

It turned over R90.7 billion for the year, a figure which represents an 8.9 percent increase in headline earnings per share to 945cps and a dividend return of 845cps to shareholders.

Shameel Joosub, Vodacom Group CEO commented: “The past year has been characterised by strong

customer growth – we now connect 116 million customers across the Group, including Safaricom – and the benefits of prudent portfolio diversification.

“In South Africa, sharp data price reductions, specifically out-of-bundle data rates, announced in the first quarter led to a steady increase in data traffic as the year progressed with 1.9 million more data customers connecting to the Vodacom network, a 9.7 percent increase to 21.9 million.”

African digital payments company DPO Group recently launched an ecommerce platform powered by Mastercard payments technology. It will enable merchants across Africa to quickly move business online.

DPO Store is a free end to end ecommerce solution available in 19 countries, customisable to the merchant and including stock management capability and real-time order management.

Eran Feinstein, CEO of DPO Group, said: “The COVID-19 pandemic is not only a human tragedy, it is also having a growing economic impact and is forcing companies everywhere to make changes to their businesses.

“We are pleased to be partnering with Mastercard on this timely initiative to try and address some of the challenges businesses of all sizes are facing.”

Since the launch in April, 55 businesses selling essential services have signed up.

FOOD & DRINK

Namibia becomes first African country to export red meat to USA Following almost two decades of negotiation, Namibia has become the first African country to export red meat to the United States.

State-owned firm Meatco recently sent a shipment of 25 tonnes of beef to Philadelphia, the country set to export 860 tonnes of beef to the USA in 2020, rising to 5,000 tonnes by 2025.

6 | Africa Outlook issue 83

“Namibia will benefit economically from tapping into the largest consumer market with purchasing power of $13 trillion, and US consumers will benefit from access to Namibia’s high-quality, free-range, grass-fed beef,” said US Ambassador to Namibia, Lisa Johnson.

The United States is the world’s largest red meat consumer, averaging an annual consumption of 120 kilograms per person. Negotiations between Namibia and the US concerning regulations and logistics have spanned 18 years.

MINING

FINANCE

IMF APPROVES EMERGENCY LOAN TO NIGERIA

AngloGold Ashanti trebles Q1 cashflow from operating activities Miner AngloGold Ashanti has reported a strong increase in Q2 cashflow despite production losses.

A diverse portfolio of 14 mines in nine countries helped limit the impact of COVID-19- related stoppages to 11,000 ounces during the first quarter of 2020.

First quarter free cashflow before investment in growth projects – the measure on which dividend payments are based – rose 231 percent yearon-year to $94 million. Cashflow from operating activities rose by 227 percent from $67 million to $219

million over the same period.

Chief Executive Officer Kelvin Dushnisky said: “We’re making good progress on achieving our core strategic objectives – including asset sales and the redevelopment of Obuasi – and have worked hard to ensure we have the liquidity to weather potential disruptions.”

ENERGY

Ethiopia welcomes investment into geothermal power plant project The Trust Fund Committee of the Clean Technology Fund is to finance the 50 MW Tulu Moyo geothermal power plant project in Ethiopia.

Extending a $10 million loan, CTF’s participation is welcomed by the African Development Bank.

Anthony Nyong, Director of Climate Change and Green Growth at the bank, commented: “This concessional

resource will be instrumental in helping the country to diversify its energy mix by facilitating the deployment of renewable energy technologies while supporting Ethiopia in meeting the targets under its National Electrification Plan 2.0.”

The project entails the design, construction, commissioning and operation of a 50 MW geothermal power plant under a build, own, operate and transfer (BOOT) scheme, and marks the first phase of the Ethiopian government’s plan to build cumulative generation capacity of 150 MW by 2024.

The International Monetary Fund has approved a $3.4 billion emergency assistance loan to Nigeria, helping support the country’s coronavirus response.

The funds will help Nigeria limit a decline in international reserves and help mitigate the impact of both coronavirus and declining oil prices.

Nigeria will take steps to help households and businesses, while moving toward a more unified and flexible exchange rate.

“Once the COVID-19 crisis passes, the focus should remain on medium-term macroeconomic stability, with revenue-based fiscal consolidation essential to keep Nigeria’s debt sustainable and create fiscal space for priority spending,” said Mitsuhiro Furusawa, IMF’s Deputy Managing Director.

TECHNOLOGY

AMAZON WEB SERVICES ARRIVES IN CAPE TOWN Amazon Web Services (AWS) recently announced the opening of AWS Africa (Cape Town) Region, expanding its cloud footprint so customers can run applications with lower latency and store content in data centres in South Africa.

“The cloud is positively transforming lives and businesses across Africa and we are honoured to be a part of that transformation,” said Peter DeSantis, Senior Vice President of Global Infrastructure and Customer Support, Amazon Web Services. “We have a long history in South Africa and have been working to support the growth of the local technology community for over 15 years.”

Africa Outlook issue 83 | 7

EXPERT EYE

Energy infrastructure in Africa – beyond cables How African countries can be supported to expand their energy infrastructure and improve access to electricity Written by: Damien Simon, Marketing and Strategy Director for the B&T Southern Business Group at Nexans

O

ver half the African population (640 million people) do not have access to energy – the lowest electricity access rate worldwide.

Because of low installed capacity, there is reduced energy consumption and access. Even those connected to a power grid experience 54 days of power outage a year on average – that’s darkness for 15 percent of the year.

There are multiple dimensions to the problem of energy access across the continent, from insufficient power generation capacity to difficulties in managing energy infrastructure; attracting investments in the sector to challenges in serving low-income users.

While the sustainable development objective of achieving universal access to electricity by 2030 is a lot closer than one might think, demand is only set to rise with an increasing population, urbanisation and economic productivity.

To achieve universal access despite increasing demand, where do we start? Well, let’s start at the very beginning, with the infrastructure that enables people to have energy delivered to their homes, schools, hospitals and community spaces.

Despite both the overwhelming need and the ample means available, the delivery of infrastructure is not happening as quickly as governments and the ultimate beneficiaries of new infrastructure might like.

8 | Africa Outlook issue 83

ABOUT THE EXPERT

Damien Simon is Marketing and Strategy Director for the B&T Southern Business Group at Nexans.

His focus is the building and power infrastructure markets in Africa, Middle East, Oceania and South America. Simon contributes to the elaboration and execution of the strategy across the area while leading several strategic initiatives related to business development.

In parallel he focuses on the development of the NEOGRID turnkey offer for rural electrification with an ongoing project in Côte d’Ivoire for the ongrid electrification of 45 villages.

In his previous assignments within Nexans, Simon spent most of its career holding business development and marketing positions in Belgium, Germany, Sweden and UK.

Getting the fundamental aspects of project development and delivery correct is a challenge, yet it is vital to ensuring the long-term success of energy infrastructure projects.

Many countries are now looking to better analyse their markets and identify projects which can be delivered successfully. For example, in the Ivory Coast, we at Nexans are working with the Ivorian state energy company, CI-Energies, to develop a ready-to-use power distribution infrastructure to over 45 villages.

In this project we are offering a turnkey solution that also brings in our key competencies and support for the management of the project. In the energy and power sectors, this project planning for implementation is crucial as there are so many moving parts that need to come together in order to make a project successful.

For example, not only do the power generation assets need to be considered, but so do the necessary transmission and distribution networks and revenue collection processes (the latter is vital in ensuring that the energy generated can be paid for). If any one of these elements are missing or not up to standard, the long-term viability of energy or power projects can be compromised.

Alongside our work on the Ivory Coast, we employ both our skills and our cables to improve access to energy through the Nexans Foundation.

In 2018, we supported a project with Electriciens Sans Frontières (ESF), consisting of the renovation of the electrical system in the Saint-Charles Lwanga high school in Ziguinchor, Casamance, Senegal.

The objective was to help improve conditions for the 500 students so that they could receive quality training as a first step towards professional integration and business creation.

Since the best way to build on the knowledge gained in the classroom is to put theory into practice, the maintenance work was entrusted to students from the neighbouring technical college, under the supervision of ESF. At Nexans, we have asked ourselves what we can do to help the remaining

“TO ACHIEVE UNIVERSAL ACCESS DESPITE INCREASING DEMAND, WHERE DO WE START? WELL, LET’S START AT THE VERY BEGINNING, WITH THE INFRASTRUCTURE THAT ENABLES PEOPLE TO HAVE ENERGY DELIVERED TO THEIR HOMES, SCHOOLS, HOSPITALS AND COMMUNITY SPACES”

half of the African population turn on their lights by speeding up the electrification of Africa, a prerequisite for health and economic development.

Already at the heart of energy infrastructure, we are working to tailor our approach to meet the unique needs and demands of our African customers, allowing for seamless and quick execution as well as cost control. In this pursuit, we are moving beyond our services as a cabling company and provider of packaged components, to a provider of power infrastructure working together with African authorities to deliver comprehensive off-grid electricity solutions from beginning to end – until the lights are on.

Africa Outlook issue 83 | 9

GOGLA

10 | Africa Outlook issue 83

RENEWABLE ENERGY

THE $24 BILLION OPPORTUNITY Off-grid solar and fintech have been tipped to provide the long-term, sustainable solution to powering the African continent and connecting millions of citizens to the digital economy Writer: Tom Wadlow

A

frica’s electricity grids are struggling.

The World Bank predicts that 600 million African citizens have no access to power, a figure which, unless drastic action is taken, will only continue to rise given the region’s population is growing at a rate of around 30 million people a year.

And the simple truth, according to figures from International Energy Agency (IEA), is that electricity supply is not keeping up with demand.

Over the last 30 years, consumption has grown at an average of 8.4 percent per year while supply has lagged behind at 6.1 percent, meaning that those who are connected to the grid face inadequate provision, with over half of African households not even connected at all.

Consumers are therefore turning to off-grid means of powering their homes and livelihoods.

In Nigeria, for example, it is estimated that the likes of diesel generators are providing up to four times the energy delivered through the national grid. Many households in Lagos, it is noted, actually have two generators, the second providing emergency backup if the first breaks down.

Meanwhile, in rural areas, it is prohibitively expensive to be connected to national grids due to the high costs associated with extending transmission lines and difficulties faced recouping fees because of a lack of adequate financial services.

These insights come from the Transformational Tech series of reports by Kleos Advisory, the first of which providing a convincing case for developing off-grid infrastructure to plug the gaping gaps in electricity provision across Africa.

SOLAR IS HOTTING UP Harnessing the power of the sun is widely acknowledged as being the most effective and sustainable way of bringing off-grid energy to the masses.

Africa Outlook issue 83 | 11

GOGLA

The numbers, albeit small, are growing.

While solar and wind between them accounted for just 0.8 percent of African energy production in 2017, with oil, gas and coal providing over half, the balance of power does appear to be changing. Between 1990 and 2020, solar output has grown by a factor of 20 to an estimated 6,090 kilotonnes of oil equivalent.

Kleos Advisory’s report observes: “Despite being a very young industry, Africa’s solar power sector already has a high degree of segmentation and diversification.

“Some companies are focused on large-scale production to replace grid power. Others are leveraging solar’s ability to connect African households to their own private power supply and to sell them an array of goods and services that are enabled by access to electricity.”

The study pays particular attention to pay-as-you-go (PayGo) home 12 | Africa Outlook issue 83

solar systems, of which five million are estimated to have been sold in the past five years.

These are far superior to the first wave of solar generation units that entered the market in the 1990s, such devices tarnishing solar’s reputation as they were difficult to maintain and often arrived without the required level of customer support.

Today’s systems are more efficient and automated, some fitted with smart software that analyses levels of power received to ensure a consistent supply of electricity at all times.

They can also power far more devices than their predecessors – by the mid-2020s, affordable home solar systems are expected to power everything from mobile phones and TVs to fans, lights and the internet, leaving just high-power items like washing machines to be used via something like a diesel generator.

POWERED BY FINTECH

“As companies continue to improve their products and services, solar home systems can now power not only lights, but also radios, TVs, fans and other small household appliances”

However, the critical breakthrough, according to Kleos, is the ability for these solar units to connect to the world of digital finance and payments services.

The PayGo model enables African consumers to buy a solar unit on a rent-to-own basis, with repayments made via mobile costing no more

RENEWABLE ENERGY

Q&A: GOGLA GOGLA represents the interests of more than 170 companies engaged in the off-grid solar industry, including the likes of EDF and Total.

We asked Koen Peters, the association’s Executive Director, about off-grid solar development in Africa.

Q: Why, in your opinion, is off-grid solar a viable solution to solving the power crunch in Africa?

A: “It’s simple – because it’s working.

Our industry has improved access to clean and reliable energy for 280 million people globally in the last decade alone. Many of the sector’s customers live in rural and remote areas across Africa which are unlikely to be reached by the grid for the foreseeable future.

“As companies continue to improve their products and services, solar home systems can now power not only lights, but also radios, TVs, fans and other small household appliances.

This makes off-grid solar extremely popular: our recent Powering Opportunity report found that 94 percent of households with a solar home system in East Africa say their quality of life has improved.

“World leaders have the ambitious goal of reaching universal energy access by 2030. For this ambition to become reality, we need proven sustainable energy solutions – and off-grid solar is one of them.”

Q: What is the mood among your membership regarding the development of off-grid solutions in the region? Are they on board with the idea?

A: “Very much so. We see member companies expanding their services, both in terms of product range and geographical reach. Digital technology, innovation and improved business operations have made it possible for the sector to reach millions of additional people.

“The latest models of solar-powered water pumps, for example, allow farmers to enhance crop yields while monitoring groundwater extraction to prevent water reservoirs from running dry. How the off-grid solar market performs in a country or region, however, ultimately depends on numerous factors, including favourable investment flows and an enabling regulatory environment.”

Q: What are some of the challenges that will need to be overcome in order to effectively roll out off-grid solar to African communities?

A: “We need all relevant partners to work together to quickly bring these life-changing products to the people who need them most. This includes the industry, development partners, governments and investors. We see that in countries with a supportive regulatory environment in terms of tax and duty exemptions, like Kenya, a thriving and competitive off-grid solar market has emerged.

“This also helps address another challenge for the sector and customers – affordability. Our member companies offer high-quality products that often come with a range of after-sales services and fair warranties. Many of them have publicly committed to our Consumer Protection Code. In a highly price-sensitive market, quality off-grid solar products offered by responsible companies cannot always compete with generic products. Governments can come in here by supporting quality off-grid solar with tax exemptions and reliable policies and regulation.”

than what it would to charge their phones and buy kerosene for lighting.

“In as little as 18 months users can own their solar unit outright, and in the process build their own credit history,” the Kleos report claims. “This can be leveraged to purchase upgrades and electronic devices powered by the solar unit (e.g. widescreen TVs, set-top boxes and fans) and to give them access to financial services, including mobile banking and insurance.”

Crucially, the system does not require government resources, with the majority of consumers paying for the power themselves.

This also leads to another liberating benefit, which is free power. Once PayGo customers have paid off the cost of their solar units, they can enjoy cost-free electricity for the remainder of the battery life, which is typically at least 10 to 12 years. As battery technology improves, this will only increase.

Having crunched the numbers, Kleos and its research partner Azuri Technologies believe the opportunity to be worth some $24 billion per year.

This is based on an average annual household spend of $200 on energy and there being 120 million homes without power, the figure likely to be even higher as it does not factor in additional services that can be leveraged over the solar-fintech platform.

Africa Outlook issue 83 | 13

LATITUDE HOTELS

T

THE BUSINESS OF TOURISM

ourism is becoming an increasingly important driver of the African economy.

According to a report by African company Jumia, in 2018 travel and tourism accounted for 8.1 percent of the region’s GDP and contributed $194.2 billion to the region’s economy.

Indeed, Nick Brown, Co-Owner and Co-Founder of Latitude Hotels, believes that the industry is vital to building more resilient economies in Africa.

14 | Africa Outlook issue 83

Nick Brown, Co-Owner and Co-Founder of Latitude Hotels, explains that expanding Africa’s business hospitality offering benefits both travellers and local communities Written by: Dani Redd

“Tourism can offer an increased and diversified source of employment and foreign income and can alleviate reliance on agriculture and commodities,” the former investment banker explains.

“It can also deliver a significant contribution to much-needed export revenues through foreign tourist spending.

According to the World Bank, visitor spend as a percentage of exports in 2018 was 18.5 percent in Uganda and over seven percent in Zambia.”

TOURISM

While Africa has long been popular with leisure travellers – especially those looking for beach breaks and safari holidays – it also has a rapidly growing MICE industry (an acronym for meetings, incentives, conferencing and exhibitions). According to Rick Taylor, CEO of The Business Tourism Company, the sector carries with it “enormous potential”.

“International MICE delegates spend $366 per person per day in Africa,” he added.

Taylor went on to explain that up to 17 percent of business and event travellers were accompanied by their partners, and up to 38 percent

Nick Brown

were likely to become repeat leisure travellers if they felt their trip was wellmanaged.

What Taylor is describing is the trend of ‘bleisure travel’ – the idea of combining business trips with several days of sightseeing, which is on the rise in Africa. There is, furthermore, an increasing expectation among business travellers that their events and conferences will incorporate both leisure activities and immersion in the local culture.

Sophie Neubauer, Manager of Public Relations & Communications at WorldHotels, explained that today’s millennial travellers expect much Africa Outlook issue 83 | 15

LATITUDE HOTELS more from the MICE hotel, including bespoke leisure packages and a little “something extra” in their hotels.

“They want to share a story. This can be a unique design element, local music bands playing in the hotel or local cosmetics or refreshments offered in the mini bar,” she said.

And this is where Latitude Hotels comes in.

“The founding concept of Latitude was ‘work stay play’ and it remains our guiding principle as we continue to develop. We felt that many African cities lacked a hospitality offering that embraces the local culture while offering first class accommodation for a diverse mix of local and international guests,” Brown tells us.

In other words, the brand was born out of a necessity, to fill a gap

How has COVID-19 impacted the tourism and hospitality industries in the countries where Latitude operates?

NICK BROWN: “The impact of COVID-19 has been unprecedented for the sector.

The combination of restrictions on travel, closures of borders and limitations on the movement of people has meant that much of the hospitality sector has had to temporarily close. There are differences on a country by country basis, but many NGO, Embassy, and DFI staff have been repatriated, business and tourist travel has dried up and even local social gatherings are in many cases forbidden.

“At this stage it’s not clear how long restrictions will last and what the longer-term impact will be, but it’s likely that business models will need to be adjusted and reconfigured going forward.”

16 | Africa Outlook issue 83

in the market for a stylish, urban yet distinctly African hotel.

The company’s pilot project was Latitude 13˚, a hotel located in the former Japanese ambassador’s home in Lilongwe, Malawi, in 2012. The hotel boasts 20 long-stay apartments alongside garden suites and club rooms furnished with locally made arts and fabrics. It also has a heated outdoor pool, conferencing facilities and offers plenty of opportunities for socialising.

“The spa, gym and all our regular evening events – musical soirees, artist interactions or book readings and launches – are all popular and enjoyable ways for guests to unwind at the end of a day’s business,” Brown explains.

The success of the concept led to the opening of two new hotels – Latitude 15˚ in Lusaka in 2014, and Latitude 0˚ opening in Kampala last year. Latitude 0˚ has 47 spacious rooms, a rooftop bar, spa and pool – the bespoke interiors are locally sourced through ethical art organisation Katundu. Meanwhile, Latitude 15˚ boasts a private member’s club ‘The Other Side’, a hub for socialising. Each hotel has a space called ‘The Works’ – a stylish business environment with open plan desks,

“We felt that many African cities lacked a hospitality offering that embraces the local culture while offering first class accommodation for a diverse mix of local and international guests”

“THE FOUNDING CONCEPT OF LATITUDE WAS ‘WORK STAY PLAY’ AND IT REMAINS OUR GUIDING PRINCIPLE AS WE CONTINUE TO DEVELOP” – NICK BROWN, CO-OWNER AND CO-FOUNDER OF LATITUDE HOTELS

TOURISM

A team of Latitude staff

private offices and state-of-the-art conference facilities.

According to Brown, local businesses make use of the The Works, alongside corporate travellers and NGOs staying at the hotel. “We strive to encourage and foster an environment that offers a progressive and inclusive approach to business and development, as well as an authentic travel experience,� the Co-Owner adds.

Undoubtedly, Latitude has tapped into a gap in the market. But when asked about his success, Brown says what he is proudest of is how Latitude helps improve the quality of life of his dedicated employees.

Africa Outlook issue 83 | 17

LATITUDE HOTELS

Local businesses make use of the The Works, alongside corporate travellers and NGOs staying at the hotel “We operate in some of the poorest countries in the world, where education tends to be insufficient, literacy levels low and jobs scarce,” he continues. “The World Bank states that 74 percent of the total employed in Sub-Saharan Africa are in vulnerable employment. Our staff make Latitude what it is, and we take a progressive approach to recruitment and diversity and value ambition, attitude and conscience above all else.

“We proactively manage gender equality. We encourage internal promotion and we commit further to our team’s welfare and development not only through extensive training, but also through a range of benefits including bursary schemes where staff can apply for funded degree courses.”

18 | Africa Outlook issue 83

Latitude’s CSR Impact Report 2019 shows that 92 percent of the staff say they have learned new skills – staff turnover stands at less than two percent at Latitude 15˚ and 4.2 percent at 13˚. This is not just because the staff receive generous wages (at Latitude 0˚ wages are 477 percent of the average in Kampala) – they also cite medical benefits, bank account access and time off for weddings and funerals as reasons for their satisfaction.

Tourism has a key role to play in making African economies more resilient by providing entry-level jobs, training and development to prevent low-skilled workers becoming trapped in cycles of vulnerability. It also directly stimulates FDI (foreign direct investment).

As Latitude’s CSR Impact Report explains: “Focussing on human capital

TOURISM

What is Latitude doing to weather the COVID-19 crisis?

NICK BROWN: “Naturally our number one priority is the resilience and sustainability of the business, and all that implies in terms of jobs and investment. With the temporary closure of the hotels during this crisis we have been able to effectively put our operations into hibernation, pausing discretionary spend and nonessential capex, ensuring – very importantly – that we can maximise the support we offer staff during this crisis – both financial, and in terms of wellbeing.

development and encouraging FDI into the broader businesses and service sector, should provide an opportunity to enhance job creation and supply chain integration, and compensate in some cases for the lack of domestic investment.”

Put simply, then, tourism has the potential to help local communities – something Brown refers to as “a multiplier effect beyond the initial investment”.

And Brown believes the sector will become even more necessary in the future.

“Going forward tourism is likely to become only more important,” he says. “Growth has slowed and governments increasingly have to look outside the commodity and

“Whilst we have prepared robustly for the current suspension, we are also busy planning for emergence once borders re-open. We predict the post-COVID guest will give heightened consideration to both space and hygiene when planning accommodation. The first of these is inherent at our hotels, with spacious properties and low guest numbers. On the latter, we have reviewed and streamlined all our procedures to ensure we’ll continue to offer the highest standards to guests, who can be sure of a safe, relaxing and comfortable stay at any Latitude hotel.

“On a broader agenda, we have extended our CSR programme this month, having formally launched our community investment scheme, ‘Latitude Gratitude’, with a recent successful fundraiser in Lusaka. This will be part of a wider programme of investment in our local communities and is particularly timely when so many of them are experiencing such hardship.

“Looking ahead, we have a busy programme of growth for the group and, right now, we are just looking forward to welcoming our teams and guests – local, regional and international – back again as soon as circumstances allow.”

“INCREASING IMPORTANCE WILL BE PLACED ON OUR ROLE AS A FACILITATOR AND FOSTERER OF BUSINESS DEVELOPMENT, AID TRANSMISSION, INTEGRATION, KNOWLEDGE-SHARING AND INNOVATION” agriculture sectors to help growing fiscal and trade deficits.”

This highlights the necessity for the African hospitality industry to be attentive to tourism trends, such as an increase in ‘bleisure travellers’, and expand provision in a socially responsible, sustainable manner.

Brown has every intention of doing just that. Over the next few years, the company plans on growing its number of hotels while continuing to establish the Latitude brand.

“Increasing importance will be placed on our role as a facilitator and fosterer of business development, aid transmission, integration, knowledgesharing and innovation,” Brown says.

We have every reason to believe that it will succeed.

Africa Outlook issue 83 | 19

TOPICAL FOCUS

INVESTING IN CHANGE Arieh and Nachson Mimran, Co-Founders of To.org, explain how different forms of investment can be used as a catalyst for change Writer: Dani Redd The world is teeming with amazing people doing incredible things. But sometimes they’re forgotten or just need a little bit of help. Ultimately, it’s a story of all of us as a collective, of doing what’s right in the smartest way possible,” says Arieh Mimran.

I’m on a video call with Arieh (pictured right) and his brother Nachson, and we’re discussing To.org, their latest venture. Part ethical investment fund and part creative activism project, underpinned by both hard data and altruistic spirituality, To.org 20 | Africa Outlook issue 83

will take what you know about venture capitalism and turn it on its head.

GIVING BACK The brothers grew up in Senegal and Switzerland, and believe the stark contrast between the two countries was a catalyst for their activism.

“There were so many things about Senegal that we really wished we could see in Switzerland,” Arieh tells me. “Like a really strong sense of community. Homelessness is quite rare, as there’s always a relative who will take you in.

“When I first saw homeless people in Bern, the capital city of Switzerland, I was quite surprised because I wasn’t used to seeing them in Senegal.”

Arieh recalls that as he grew older and became more involved in the business world, he found that African businesses and NGOs had a strong meaning and vital purpose compared to western countries, where projects felt less necessary, with money being funnelled into the wrong places.

Both Mimran brothers, throughout the call, repeatedly acknowledge their privilege. They emphasise that one of

SUSTAINABILITY the most important things about being in their position is that they can give back to local communities.

“If we have food on our plates and access to education, then first of all, everyone else should have the same right. And secondly, anything above that we’d love to give back,” Arieh explains.

As a teenager, Arieh began to develop an interest in microfinance and sustainable economics. Meanwhile Nachson, seven years older, had been involved in the family business from a young age. Alongside learning about operating in frontier markets, he had become interested in the best way to run a business to maximise its socio-economic effects in a way best benefitting the local community.

The two brothers were beginning to discuss how best to combine their ideals and experience in a partnership when their mother passed away unexpectedly. This instilled in them a sense of urgency, and a desire to make their lives matter.

“We want to wake up every day to serve others in the most thoughtful and sophisticated of ways,” says Arieh.

“Not just in the ways that look the best, but in the most data-driven and in the most logical of ways.”

Nachson explains that the business is not just underpinned by hard data, but is also guided by the concept of tikkun olam, a philosophical principle found in the kabbalah.

“Tikkun olam is a principle that many enlightened souls live by, which is that we’ve inherited quite a chaotic and dysfunctional world, and if we aren’t in the 30 percent of the population that live in poverty then we have the ability to close every day with a serious review of the acts of tikkun, which are the acts that we’ve done through the day to help repair this chaotic situation that we’ve inherited,” he says.

“This is something that was instilled in us by our mother. When you’re younger an act of tikkun is hugging a kid who is being bullied at school.

And as we started growing into young adults, acts of tikkun started taking on more global implications, and involving more collective expertise focussed on social issues.”

So the brothers set up To.org, which exists to help accelerate the important work other businesses and individuals are doing in the fields of education reform, sustainability, agriculture, health and much more.

“This is the decade that matters,” Nachson explains. “We have less than 10 years to change the trajectory we’re on and we won’t sleep until we do that.”

VENTURING SOLUTIONS The brothers have thought long and hard about the best way they can mobilise To.org to give back. While they acknowledge the importance of financial capital, they also stress that donating money to a project or situation is not always the best, or only, way to help. The remit of To.org

INSIDE TO.ORG VENTURE: Investing in earlystage, high-growth companies with similar values and ideals to To.org that produce ethical, beneficial products and services.

FOUNDATION: This is the pro bono, non-profit arm of To.org, working with NGOs and other organisations to create sustainable, long term solutions and improvements to African communities, from the city of Dakar in Senegal to Nakivale refugee camp in Uganda.

CREATE: Using creative projects and ideas to establish networks, ignite conversations and provide innovative solutions to global problems, such as climate change.

therefore extends beyond simply functioning as an investment fund – it also helps facilitate collaborations, engages in humanitarian projects and helps provide creative branding and innovative solutions.

Each project is carefully evaluated by the brothers before they decide to take it on. But their motives are not solely pecuniary.

“Financial return is very important, especially if you are trying to compete in a highly capitalistic world,” Arieh says. “But after six years of work we finally defined six different types of return that we care about. I’ll split them into two categories – the first is more straightforward for the sustainable investor and that’s financial return, social return and environmental return.

“The second category is a little more esoteric. We realised that a lot of people make financial decisions because they want to learn, and at To.org, we’re a young company who believes that educational return is very important.

The fifth type of return is more brand or narrative-based – we want to take on projects that create a narrative which others want to be a part of.

“And then, finally, we look at spiritual return. We define this as: “if we fast forward 50 or 60 years, and Nachson or I or any of the other decisionmakers are on their deathbeds, did we make the right decision, at the right time, for the right reason?”

Some of the ventures that To.org is proudest of supporting include mPharma – a business dedicated to making medicines safe, accessible and affordable to everyone in Africa – and Sokowatch, a business linking small suppliers to the digital economy to improve African supply chains.

CREATIVE ACTIVISM While Arieh is heavily involved in the venture vertical of the business, Nachson spearheads the ‘To create’ vertical. He has always been interested in how vital information can be communicated in a way that engages people.

Africa Outlook issue 83 | 21

TOPICAL FOCUS

‘THE VANS ARE ‘PORTALS’, OR MEETING ROOMS WHERE PEOPLE ACROSS THE WORLD CAN VIDEO CONFERENCE AND INTERACT WITH EACH OTHER. FOR EXAMPLE, AN ARCHITECT IN A REFUGEE CAMP COULD SKYPE WITH AN ARCHITECT ON HOLIDAY IN GSTAAD’

“Not everyone has a response to an infographic,” he explains. “And this is where culture has a really important role to play.”

A pivotal moment in To.org’s thought about the importance of creativity came in 2016, when the Liberian President Ellen Johnson Sirleaf was trying to pass a progressive education reform act which involved inviting private sector operators to partner with the government – something she received backlash for.

The brothers connected their friend, the singer Akon – a philanthropist interested in electrification – with the Liberian Ministry of Education and private educational operatives, and together they established the Light to Learn initiative, which uses clean solar energy to power classrooms.

22 | Africa Outlook issue 83

CREATIVE CASE STUDIES THE GREAT GREEN WALL: To.org supports this pan-African initiative to build a ‘wall’ of trees from Senegal to Eritrea to help combat desertification and provide livelihood in rural areas (through farming and agroforestry) which are seeing exodus. It has already planted over 60,000 cashew nut trees and mango trees at the base of the wall in Senegal. It functions as a hybrid approach to land degradation, carbon offsetting and economics, while also challenging the symbolism of the wall as something that divides cultures.

SHADOWMAN VAN: One of ‘To Create’s’ flagship projects began with an art piece by Richard Hambleton – a graffitied 1970s van. To.org has parked the van outside the Mimran brothers’ hotel in Gstaad (The Alpina) and established a network of similar vans across the communities where it operates. The vans are ‘portals’, or meeting rooms where people across the world can video conference and interact with each other. For example, an architect in a refugee camp could Skype with an architect on holiday in Gstaad at The Alpina to discuss ideas and network.

SUSTAINABILITY together a collective of people we now call creative activists from our network to crack certain briefs. “‘To Create’ has a service where we help vital ventures with their brand strategy and design. But we go beyond that and also think of art, not just as an object but a system or tool that helps connect the 0.1 percent of the world with the 30 percent who live in poverty.”

Nachson proceeds to outline an example, holding up a plastic bottle that has been stuffed with around 50 discarded carrier bags, which gives it a density that allows it to be used in construction projects.

“We launched a movement in a Ugandan slum where we had more than 500 people, including women,

The initiative kicked off with a highprofile talent show that sparked interest across the continent.

“What was interesting here was the ability to connect seemingly unconnectable dots – an African influencer who happens to be in solar energy, a female African president with a cohort of private operators – and create this synergy,” Nachson explains. “This was the beginning of our vertical called ‘To Create’: bringing

children not in school and unemployed youth, and had them make these bottle bricks,” he continues. “We purchased each one for 20 cents and used them to build a public toilet in the slum.

“We used 13,356 bottle bricks, and the result is more like an art piece or a monument than a toilet. So it doesn’t just provide a solution to inadequate sanitation, it provides this mindset that anything is possible.”

The Great Green Wall

Both Nachson and Arieh want to diminish their own role in the projects they mention, highlighting instead the innovative ideas of the community around them.

“We are just one tiny little piece of the puzzle and our most valuable asset is the trust that this collection of misfits has in our ability to do things differently,” Nachson says.

However, it is clear to me that Arieh and Nachson have played a vital role in inciting a movement they hope will challenge views of capitalism, and become the status quo.

In a world that has seen some alarming shifts in the past couple of decades, ranging from climate change to the coronavirus pandemic, it is clear we need more organisations like To.org.

Africa Outlook issue 83 | 23

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CIMENTOS DE MOÇAMBIQUE

w w w. a f r i c a o u t l o o k m a g . c o m

THE VIRTUOUS CEMENT CYCLE Edney Vieira, Chairman & CEO of Cimentos de Moçambique, on how the firm has been creating opportunities for people and communities for 95 years

CONSTRUCTION

Issue 83

AFRICA LOGISTICS PROPERTIES

Cimentos de Moçambique continues to create prosperity for the country, not only by supplying major infrastructure with high quality cement, but through generating opportunities for people and communities

Driving an infrastructure revolution

TIGER ANIMAL FEEDS AND TIGER CHICKS

Writer: Tom Wadlow Project Manager: Josh Mann

F

Fuelling Zambian farming through nutritional and technical support

Edney Vieira, Chairman and CEO, Cimentos de Moçambique

or a building material that traces back to ancient Greece and Rome, cement, it is fair to suggest, has stood the ultimate test of time.

Around 2,000 years ago, human ingenuity deduced a reaction between lime and volcanic ash when mixed with water, a cementing material which formed the basis of huge swathes of construction work in Western Europe, the classic pozzolana cement gaining its name from the Italian city Pozzuoli.

The Portland cement we are familiar with today was first developed in England by John Smeaton before being patented by Joseph Aspdin in 1824, who produced the material from a synthetic mixture of limestone and clay, a move which sparked an enormous spread of cement manufacturing worldwide throughout the 19th and 20th centuries.

Worldwide production is still on the rise today, the 4.1 billion tonnes made in 2019 markedly higher than

THE VIRTUOUS CEMENT CYCLE

Marketi ng Oppo rtunity

BUILDING MOZAMBIQUE FOR 95 YEARS AND COUNTING the 3.3 billion tonnes recorded in 2010, although slightly under the 4.18 billiontonne peak witnessed in 2014.

The wider point, however, is that modern-day construction is still reliant on the production of cement in enormous volumes all over the world.

In Mozambique, almost all of its

20th and 21st century infrastructure carries the cement stamp of just one organisation.

For almost 100 years, state-run and now privately owned Cimentos de Moçambique has been producing this vital building material all over the country, a defiant constant during a Africa Outlook issue 83 | 3

Arieh and Nachson Mimran, Co-Founders of To.org, explain how different investment types can be used as a catalyst for change

www.africaoutlookmag.com/get-involved

CIMENTOS DE MOร AMBIQUE

Edney Vieira, Chairman and CEO, Cimentos de Moรงambique

CONSTRUCTION

Cimentos de Moรงambique continues to create prosperity for the country, not only by supplying major infrastructure with high quality cement, but through generating opportunities for people and communities Writer: Tom Wadlow Project Manager: Josh Mann

F

or a building material that traces back to ancient Greece and Rome, cement, it is fair to suggest, has stood the ultimate test of time.

Around 2,000 years ago, human ingenuity deduced a reaction between lime and volcanic ash when mixed with water, a cementing material which formed the basis of huge swathes of construction work in Western Europe, the classic pozzolana cement gaining its name from the Italian city Pozzuoli.

The Portland cement we are familiar with today was first developed in England by John Smeaton before being patented by Joseph Aspdin in 1824, who produced the material from a synthetic mixture of limestone and clay, a move which sparked an enormous spread of cement manufacturing worldwide throughout the 19th and 20th centuries.

Worldwide production is still on the rise today, the 4.1 billion tonnes made in 2019 markedly higher than

THE VIRTUOUS CEMENT CYCLE the 3.3 billion tonnes recorded in 2010, although slightly under the 4.18 billiontonne peak witnessed in 2014.

The wider point, however, is that modern-day construction is still reliant on the production of cement in enormous volumes all over the world.

In Mozambique, almost all of its

20th and 21st century infrastructure carries the cement stamp of just one organisation.

For almost 100 years, state-run and now privately owned Cimentos de Moรงambique has been producing this vital building material all over the country, a defiant constant during a Africa Outlook issue 83 | 27

CIMENTOS DE MOÇAMBIQUE

BRIEF BIO

EDNEY VIEIRA TELL US ABOUT YOUR WORKING BACKGROUND. EDNEY VIEIRA: “I am a lawyer by trade and started my career in the construction sector around 25 years ago. I spent around 10 years creating legal documents for companies in the industry before being invited to jump into an expatriated career, moving to Turkey in 2006 to head up the company’s operation there – before InterCement, its main shareholder was Cimpor, the leading Portuguese cement firm.

“I then moved to Portugal and have stayed at InterCement ever since it made the acquisition of shares in Cimpor. This led me to South Africa to manage risk and auditing for the company’s entire African operations, and I also took on supply chain, HR and legal responsibilities, specifically in South Africa, before moving out to Mozambique.”

30 | Africa Outlook issue 83

tumultuous recent past which has effectively helped to build a nation from the ground up.

Its current Chairman and CEO is Edney Vieira, who arrived at the company on the back of more than two decades of experience in the industry, much of it with InterCement, the group which owns Cimentos de Moçambique.

Mozambique has presented a different opportunity to Vieira, who previously worked in Turkey and Portugal before moving out to the African continent (including six years in South Africa).

“I enjoy living and working here in Mozambique, even though it has its own unique challenges,” he says.

“In the other countries I have been in you are used to having everything, whereas here you really learn to value what you have.

“Humans have a tendency to complain about things they don’t have, but we look at the full half of the glass here. The people are wonderful and welcoming, and the country is also naturally very beautiful.”

The conversation leads into the current situation the CEO finds himself in, regarding steering Cimentos de Moçambique through the current uncertainty caused by the coronavirus pandemic. While Mozambique, like many developing nations, has not faced huge numbers of cases for a variety of reasons, the economic impact of COVID-19 is still presenting a challenge.

“There are some cases here, but we are fortunate to not have suffered with a huge outbreak like countries in Europe or the USA, although every fatality caused by COVID-19 is a tragedy that we cannot ignore,” Vieira adds.

“The virus has also had its impact on us financially – we have felt it in terms of sales, but I am optimistic about getting through this and looking ahead to a more prosperous time.”

Renato Azenha Mozambique On behalf of our entire organisation, we extend our heartiest congratulations to Cimentos de Moçambique for completing 95 glorious years of success.

Companies like yours with a brilliant team of dedicated workers and with a friendly work environment can only aim for high results. Working with you has been a real honor.

With your commitment and sincerity you have time to time proved your worth and have gained the much deserved recognition and fame. With your services, the community has gained a lot.

We wish you all the success for many more years to come. And we hope to continue doing business with you in future.

Sincerely, Vasco Azenha RA Board

www.renatoazenha.com

Indeed, that Cimentos de Moçambique has been able to stand strong for 95 years suggests it is better placed than most to emerge out of the coronavirus pandemic in relatively good health.

Its five operational plants are spread throughout three provinces in the south, centre and north of the country, staffed by approximately 900 direct and indirect employees who produce 32.5 and 42.5 grade cement to for a diverse range of clients.

From retailers to heavy construction contractors and local firms to multinationals, Cimentos de Moçambique is renowned for its reliable and quality product, the company also able to make very specialist batches of 52.5 grade for specific projects when required.

For Viera, this reputation and nationwide coverage is key to holding firm against competitors in what is a vibrant sector.

CONSTRUCTION

A new beginning in Gaza

In the north of the province of Gaza, water research has been carried out using high depth water wells. As a result, towns are beginning to be equipped with their own water supply system. The origin of the water is coming from 300 to 350 meters depth.

These results that have been achieved by Renato Azenha (RA), a water works group and pioneer in water supply in Portugal, started in 1967.

Renato Azenha Mozambique embraces the entire value chain of the public supply sector, from groundwater abstractions, establishing with its public or private clients added value services that allow the

www.renatoazenha.com

production of water suitable for public supply, namely human consumption.

Nowadays, with a reputation forged over many years, RA is known for completing single well jobs or complex, multifaceted, high profile projects with a focus on safety, innovation, dependability and professionalism.

RA provides a very broad experience base, and our employees take pride in their expertise and work diligently to uphold or surpass our clients’ needs. RA has a team of expert consultants of national and world renowned experts who deal with the problems of groundwater and aquifer studies.

Production site in Matola

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Africa Outlook issue 83 | 31

CIMENTOS DE MOÇAMBIQUE “The competition here is very healthy,” he adds. “There are several competing companies which means we have to stay on our toes and make sure we produce the best possible product – we also have spare capacity meaning we are ready to fulfil any future demand.

“The market is well set up and the government has worked hard to safeguard our industry against unfair import competition, which has helped to protect quality, keep revenue in the country and maintain employment.”

A VIRTUOUS CYCLE Cimentos de Moçambique’s major advantage, as well as its geographic reach, is its brand recognition.

Being the sole operator in the country for decades enabled it to entrench itself into the market and put its stamp on almost every iconic building project until competition began to enter the market, and the fact it still commands the trust and custom it does is testament to the unwavering commitment to producing a quality product.

32 | Africa Outlook issue 83

“In all my career I have not been at a company with such a long and proud history of operation,” Vieira states.

“Mozambique’s recent history through the 20th century has been blighted by wars and instability, but the cement plants were still operating and helping to build the country – it is a remarkably resilient organisation. As a matter of fact, Cimentos de Moçambique has

essentially built Mozambique.

“It is something which makes us proud, not only for me as CEO, but for the families who have dedicated their working lives to making sure we produce quality products, some being tied to the organisation over several generations.

“They are part of what I call a virtuous cycle of employment, production and productivity, with Cimentos de Moçambique at the centre, like the sun in a solar system which powers the planets revolving around it. This progressive cycle has been functioning for nearly 100 years, and long may it continue.”

The virtuous cycle Vieira refers to encompasses local suppliers up and down the value chain with whom the company does business.

Vieira is quick to acknowledge the critical role that both Mozambican and international partners play in ensuring the smooth running of the organisation on a day to day basis, Cimentos de Moçambique prioritising local vendors where possible in its procurement activities.

CONSTRUCTION

CIMENTOS DE MOÇAMBIQUE

ABOUT INTERCEMENT InterCement is a Brazilian private equity company and leader in the Argentine and Mozambican markets. It is also vice-leader in Brazil and Paraguay and holds regional leadership in South Africa and Egypt. Today, the company has 35 cement and grinding plants spread across two continents.

INTERCEMENT AFRICA CIMENTOS DE MOÇAMBIQUE: After the acquisition of Cimpor in 2012, Cimentos de Moçambique and its stake in the also Mozambican company Cimentos de Nacala became part of the portfolio of companies of the holding company InterCement. Altogether there are five factories in the African country, distributed in the cities of Matola (integrated plant), Dondo and Nacala (milling facilities). Holding a strong market share, Cimentos de Moçambique is the market leader in Mozambique.

AMREYAH CEMENT: In Egypt, InterCement operates through its subsidiary Amreyah Cement, which produces and trades cement. The company is located in Alexandria and has three clinker production lines, in addition to mills. The company was founded in 1987 and became part of the holding company in 2012.

NATAL PORTLAND CEMENT: In 2012, InterCement integrated Natal Portland Cement (NPC), from South Africa, to its portfolio. In the country, the company has three cement plants, located in Port Shepstone (integrated plant), Durban and Newcastle (milling facilities). NPC’s history goes back to the founding of Durban Cement Ltd in 1964 and since then has been the market leader within the Province of KwazuluNatal.

Celebrating 95 years in operation

34 | Africa Outlook issue 83

Localised employment is also a fundamental part of the virtuous cycle.

Indeed, finding skills is cited by the Chairman and CEO as arguably the company’s greatest challenge, the firm determined to address this shortage by investing heavily in training and development in the form of internship programmes.

“I am proud to say that one of our plant managers joined us as an intern,” Vieira adds. “We have many powerful examples showing the impact of Cimentos de Moçambique on the lives of Mozambicans.”

Beyond employment opportunities, the organisation contains internal groups who volunteer time to create projects designed to engage with the community, the idea being to contribute a lasting impact which will deliver long-term benefit.

“By principle, we do not simply give money, as we don’t believe it is enough to simply offer finance as it will disappear down the chain if you don’t help in other ways,” Vieira continues.

“We invest in projects which can be handed over to local people – schemes

CONSTRUCTION

which can grow to a point where they become self-sustaining, like incubating a new business.

“Investing in youth is also vital to the future prospects of Mozambique, so a lot of our CSR activities support initiatives with schools in the communities surrounding our plants.

We educate students on what we do and how we do it, and often their parents work at our plants, so it is a way of helping encourage younger generations to engage in our industry and become interested in pursuing a career with us.”

The company also looks out for the community in an environmental sense, doing what it can to minimise the impact of its production operations.

It has invested heavily in waste management and co-processing, a technique which involves burning industrial and urban waste like tyres, used oils, plastics and paints to replace traditional fuels, without generating new waste and harming the environment.

Not only this, it also contributes

to the virtuous cycle by joining up operations with different sectors, in turn generating employment and promoting social development.

BUILDING PROSPERITY Creating prosperity is ultimately why Cimentos de Moçambique exists, and this is very much the focus of Vieira moving forwards.

Asked to conclude our conversation by summarising his outlook and plans for the future, he continues to look at the full half of the glass, not least because of major LNG-related infrastructure projects in the horizon in the north of the country.

“We strongly believe that these big projects must have the Cimentos de Moçambique stamp on them,” he says. “They are crucial developments for the country, and we are ready to supply them with the high-quality cement that they need. This is our future. We are one of the pillars and part of the foundation in the building of Mozambique.

“We may be nearing a century, but

“We have many powerful examples showing the impact of Cimentos de Moçambique on the lives of Mozambicans” the company is still young at heart and more youthful and vibrant than ever. Our employees are engaged and continue to be the beating heart of the business, so we must do our best to keep them motivated.

“This is what defines us – we have been a part of the making of this country and will keep adapting and improving in order to continue contributing.

Building prosperity is what we believe in, and together we are stronger.”

CIMENTOS DE MOÇAMBIQUE Tel: +258 21 482500 nbalate@intercement.com

Africa Outlook issue 83 | 35

DANGOTE CEMENT CONGO

36 | Africa Outlook issue 83

CONSTRUCTION Dangote Cement’s operations in Congo are a vital economic and social contributor, the firm’s plant near Mfila being the largest ever opened in the country

Bringing the Dangote Way to Congo D

Writer: Tom Wadlow | Project Manager: Josh Mann espite facing political and economic instability in recent years, the Republic of Congo’s economy appears to be heading in the right direction.

According to the World Bank, GDP growth for 2019 is expected to be recorded at 5.4 percent, an upward curve predicted to continue into 2020 and 2021, gaining an average of 1.8 percent per year for the next two-year period.

This outlook is based on a strong oil and resource sector and a growth in investments – in 2018, around 17 percent of GDP derived from investment, a figure which is forecast to rise to 22.7 percent during 2019 to 21, assuming favourable oil prices and budget surpluses.

It also requires a stable political picture. November 2017 proved to be a significant turning point, after a ceasefire agreement was signed between the Congolese Government and representatives of the former rebel leader Frédéric Bintsamou.

Since then the country has benefitted from a period of peace and security, a status quo which is gradually seeing investors return to the country.

Indeed, the non-oil sector also has its role to play, and 2017 also marked the entry of Dangote Cement, West Africa’s leading cement producer, into the Congolese market.

“Operating as a business unit of Dangote Group in Congo, the largest conglomerate in West Africa and one of the largest in the African continent, it is important for us to play our part in the ongoing development of the country,” comments Afroz Ansari, the company’s Country and Plant Director.

Africa Outlook issue 83 | 37

DANGOTE CEMENT CONGO

DANGOTE CEMENT IN NUMBERS Dangote is West Africa’s premier and largest producer of all grades of cement, from general purpose all the way through to highperformance Portland cement of strength class 52.5.

Below are some key facts and figures:

>24,000

EMPLOYEES ACROSS THE REGION

$2.5bn

REVENUE IN 2019

45.6mn

TONNES PER ANNUM CAPACITY ACROSS AFRICA

10

COUNTRIES WITH PRODUCTION OPERATIONS

32.5R, 42.5R, 52.5R

CEMENT BAG PRODUCT RANGES

38 | Africa Outlook issue 83

“We want to play a lead role in the writing of what is a constantly evolving development story here.”

Ansari is very well-placed to lead Dangote’s growth and progression in Congo. The industry expert has a long CV of experience spanning 40 years, working for numerous cement production firms across the likes of India, Saudi Arabia, Oman and Tanzania before joining Dangote in late 2018.

“After completing my university education, I opted to join the cement industry instead of the Indian railway sector,” Ansari recalls. “My first job in this space was as a trainee in production and quality control, gradually climbing up the ladder to reach a position of Plant Director/Country Director here in Congo.”

KEEPING CONGO BUILDING Ansari’s job is to ensure the continued success of the Congolese division.

Its cement plant is the largest ever to have opened in the country and is located near Mfila, situated on the road between Pointe-Noire and Brazzaville, Congo’s two major settlements and home to more than half of the population.

CONSTRUCTION

DANGOTE CEMENT CONGO Here, Dangote Cement Congo produces 1.5 million tonnes of high-quality cement per annum, complying with EN197-2011 and Congolese quality standards, and using the best analysers and equipment to be found in the industry.

“We at Dangote Cement pride ourselves on operating a unit with world class cement manufacturing technology,” Ansari adds. “This means having energy efficient mills, pollution control equipment, online quality control

systems and a best-in-class, industry leading operating system.

“I would go as far to say that our state-of-the-art technology is what sets us apart. We are able to produce the best available cement in the world thanks to continuous monitoring of all quality parameters of input. This occurs at each stage through cross belt and XRF analysers, using ROBO lab online sampling technology created by FLSmidth technology.

THE SEVEN SUSTAINABILITY PILLARS Dangote’s approach to business revolves around seven sustainability pillars, fundamentals which are measured and reported on regularly and comprehensively. These are: FINANCIAL: Achieve sustainable financial health through a business model that delivers strong returns to shareholders, whilst creating value for local economies by selling high quality products at affordable prices, supported by excellent customer service.

INSTITUTIONAL: Build a world-class institution centred around corporate governance best practices and sustainability principles that promote legal and regulatory compliance, transparency and business continuity.

ECONOMIC: Promote inclusive, sustainable economic growth, selfreliance, self-sufficiency and industrialisation across Africa by establishing efficient production facilities and developing resilient local economies in strategic locations and key markets.

CULTURAL: Embody our core values in day-to-day business, including a respect for cultural diversity and giving back to local societies. To be achieved through teamwork, empowerment, inclusion, respect, integrity and meritocracy within the organisation.

OPERATIONAL: Serve and satisfy markets by working together with partners to deliver the best products and services to customers and stakeholders through continuous product improvement, new business development, state-of-the-art technologies and systems to constantly optimise cost-efficiencies.

ENVIRONMENTAL: Create sustainable environmental management practices through a proactive approach to addressing the challenges and opportunities of climate change, while optimising performance in energy efficiency, water usage and emissions.

SOCIAL: Create a learning environment and platform for employees to grow and achieve their fullest potential, whilst adhering to the highest standards of health and safety. Curate sustainable prosperity in host communities through employment, skills transfer and entrepreneurial development.

40 | Africa Outlook issue 83

Puma Energy Puma Energy is a leading global energy business and supplies, stores and distributes petroleum products in 48 countries across six continents.

Founded in 1997, Puma Energy has its headquarters in Singapore and Geneva and regional hubs in South Africa, Puerto Rico, Australia and Estonia, and employs over 8,000 people globally.

Puma Energy has a network of 100 storage terminals, more than 3,000 retail sites, and a presence at over 80 airports. Our mission is to energise communities to help drive growth.

We focus on fast-growing markets where we supply quality fuels, oil products and invest in transformative infrastructure. Considering our global integrated supply system, we deliver high-quality products around the world safely, swiftly, reliably and at a competitive price.

Puma Energy Congo Brazzaville has 34 service stations that supplies high quality gasoline, diesel and lubricants.

CONSTRUCTION

Energising communities

Puma International Congo SA | 50, Avenue Felix EBOUE, zone Port Autonome de Pointe-Noire | Direct +242 06 660 84 10 | Mobile +242 05 051 51 50

The Dangote Cement Congo team

Africa Outlook issue 83 | 41

DANGOTE CEMENT CONGO “Meanwhile, all operations from our central control room are coordinated using technology from Siemens – this is transforming our industry and differentiates us from other cement producers in Congo.”

The Mfila site is able to draw on 144 million tonnes of limestone reserves, a long-term resource that will be important as Congo and the wider region bids to increase infrastructure building to cater to fast-growing populations.

Indeed, all Dangote plants are designed to make higher-strength cements such as 42.5 and 52.5 grades – these will increasingly be required as the size and height of buildings increase in Africa’s growing and urbanising economies, Congo being one of them.

This, as well as the Mfila plant’s strategic location, feeds into another competitive advantage in the form of Dangote’s supply chain network.

“DANGOTE PLANTS ARE DESIGNED TO MAKE HIGHERSTRENGTH CEMENTS SUCH AS 42.5 AND 52.5 GRADES – THESE WILL INCREASINGLY BE REQUIRED AS THE SIZE AND HEIGHT OF BUILDINGS INCREASE IN AFRICA’S GROWING AND URBANISING ECONOMIES”

The group’s size and financial strength enable it to invest in strong distribution capabilities at costs unattainable by smaller and less financially secure competitors, and Ansari is quick to praise the critical role that all Dangote Congo partners and suppliers play in its ongoing operations.

“Be it procurement or sales and marketing, the company’s supply chain operations are of the utmost importance, and all the time interdependent across the length of the operation,” adds Ansari.

“Positive engagement with suppliers has and will continue to play a major role in success of our business. Local partners and import suppliers are identified and selected very carefully, and we always try to encourage the use of local companies where possible.”

A SUSTAINABLE, RESPONSIBLE FUTURE Such empowerment of local enterprise is typical of Dangote’s approach to doing business in Congo.

Not only are local staff being empowered and trained to take over plant operations from the Chinese firm which built it, they are also encouraged to give back to the local

CONSTRUCTION community in the form of clean-up activities and other programmes which make up Dangote’s corporate social responsibility strategy.

From conducting awareness and training schemes for neighbouring villages on education and health, to financing and supplying the construction of bridges, roads and school buildings, the company has been an active corporate citizen since arriving in Congo in 2017.

In the summer of 2018, for example, it helped deliver a brand-new school building in Mfila, a facility which is able to accommodate 245 pupils.

Dangote is also working hard on plans to develop a new hospital building in the area, a project which Ansari hopes will come to fruition within the next

In the summer of 2018 Dangote Congo Cement helped deliver a brand-new school building in Mfila, a facility accommodating 245 pupils year or so.

This invaluable community work all ties into what the company refers to as the Dangote Way, a modus operandi defined by seven sustainability pillars which are practiced at every level of the organisation.

Sticking to these principles will ensure the company leaves a positive lasting legacy on Congo, something which Ansari is determined to build in the coming years.

The Country and Plant Director outlines four major objectives Dangote will be working towards through the rest of 2020 and beyond, two of them being to maximise the capacity at the Mfila site through a growth in sales and to diversify the product portfolio with new products.

The other two targets centre on energy. Not only will Dangote begin to make use of alternative, non-coalbased fuels, it will also adopt enhanced energy conversation practices in a bid to become a more environmentally sustainable operation.

Ansari concludes optimistically: “Growth in regional demand is expected to be at around eight percent on a year on year basis – local as well as regional demand will be driven by government spending on infrastructure development.

“Dangote will be striving to sustain and grow with improving operational efficiencies and cost management, despite low cement market demand versus production capacity. We will continue to improve our operations with continuous engagement of all internal and external stakeholders to ensure a long, prosperous future.”

DANGOTE CEMENT CONGO Tel. +242 057999191 dangote.congo@dangote.com www.dangote-group.com

CEMZA

44 | Africa Outlook issue 83

CONSTRUCTION

MADE TO LAST T

he Coega Industrial Development Zone – nestled in the Nelson Mandela Bay Municipality of South Africa not far from Port Elizabeth, it has served as an export hub and industry-friendly operating environment for more than 20 years.

A duty-free zone with tax incentives and rebates, Coega IDZ is also adjacent to the modern deep-water Port of Ngqura, a vital South African gateway to global markets.

In 2010, Cemza, with the backing of German powerhouse HeidelbergCement as part-owner, saw an opportunity.

“Prior to our entry, there had been no investment in the cement sector in Eastern Cape for many decades, and the only existing plant was out of date in terms of technology,” comments Managing Director Tushar Agrawal.

“The market was being supplied from other regions involving transport over long distances combined with import of cement from Asia. We saw this as being a suboptimal approach to the market that was not in line with the current technology and trends.

Having started production of precision engineered cement in 2018, Cemza has brought some much-needed home-grown capacity and quality to the South African market Writer: Tom Wadlow | Project Manager: Josh Mann

Atop Table Mountain, Cape Town “This motivated us to work on the opportunity, to deliver a value proposition to cement consumers by putting up an investment to fill the

supply gap,” the Managing Director enthusiastically explains.

Eight years of careful planning and construction later, Cemza began production at Coega IDZ and has never looked back.

Today it stands as a regional supplier of high-quality, precision-engineered cement to Eastern and Western Cape markets, offering a locally sourced alternative and a guarantee of consistency and reliable turnaround times. Sold in durable 50-kilo shrinkwrapped and palletised paper sacks, Cemza can cater to the entire cement spectrum, from general purpose 32.5N to premium 42.5N and ultra-strong 52.5N grades.

Each product is meticulously formulated in order to serve every construction need.

Indeed, a major differential for Cemza has been the introduction of slag-based cements. These products are especially suited to building in coastal environments thanks to its reduced permeability, superior durability and resistance, and greater long-term compressive and flexural strengths.

Africa Outlook issue 83 | 45

CEMZA Further still, slag-based cement offers enhanced workability and is easier to use, and also carries a much friendlier environmental footprint than its conventional counterparts.

For Agrawal, this perfectly highlights the company’s approach to innovation, injection of which being much needed in the local cement market.

“We follow the Kaizen philosophy whereby innovation and optimisation are ongoing processes,” he says. “Our approach is to continuously review for improvement in each facet of our operation, and that is shown by the introduction of slag-based cement

products to the Eastern Cape.

“Being a relatively young team, our agility and commitment to excellence is one of our key strengths.”

EQUIPPED FOR THE JOB Inventive human capital is backed up by state-of-the-art equipment, centred around a vertical grinding mill which the Managing Director describes as the beating heart of the facility.

It was sourced from German manufacturer Gebr. Pfeiffer, granting Cemza the advantage of being the only cement producing site with such equipment on the South African coast.

Scribante Concrete Established in 1999, Scribante Concrete today stands as one of the largest privately-owned ready-mix concrete suppliers in South Africa.

Its products serve customers in commercial, industrial, energy, civil, residential, and agricultural sectors, and are delivered by a fleet of 140 trucks which are able to reach your project location.

Scribante’s services cover commercial and mobile plants of which they can serve clients with six pump trucks. They also collect cement and extenders with a fleet of 8 cement trucks to make sure that stock never runs out.

“We understand that personal attention to each and every order, and each and every customer, helps define great service. Small contractors and homeowners alike are treated with the same courtesy and attention to detail as our largest customers doing the largest pours.”

www.scribanteconcrete.co.za

INTERNATIONAL BENCHMARKS

How does Cemza’s partnership with HeidelbergCement work, and what benefits is it delivering for you and your customers?

Tushar Agrawal: “HeidelbergCement (HC) is one of the world’s largest building materials companies with around 55,000 employees working at more than 3,000 production sites in more than 50 countries on five continents.

“It is a strategic shareholder of Cemza with representation by senior HC management on the Cemza board, and assisted us with the design and setup of the facility.

“Cemza also benefits immensely with regular technical support and guidance on latest trends and technological advancements from Heidelberg Technology Centre based in Leimen, Germany. With the help of the partnership, Cemza does not just comply with local requirements, but benchmarks itself against global best practices, quality assurance and product quality, thereby giving us an edge over our competitors.”

46 | Africa Outlook issue 83

“One of our key advantages is the capability to process ultra-fine grinding as per requirement,” Agrawal adds. “The fineness of cement is a major factor influencing its rate of hydration since the reactions involved occur at its interface with water.

“The finer the cement particles and the greater its surface area, the faster the rate of hydration and the greater the proportion of the cement which reacts within the paste. We can therefore adjust the fineness of the product to higher blaine to enhance strength with a product particle composition that is more stable.”

Cemza’s vertical mill also produces less noise and consumes around 40 percent less energy than traditional ball mills, its lower power consumption providing another competitive advantage as well as an environmental benefit.

Machine supplier Gebr. Pfeiffer is part of an esteemed network of partners from home and abroad, another being Danish firm Ventomatic

CONSTRUCTION

South Africa’s biggest privately owned readymix

Concrete Producer

• Commercial Plants

We strive to pair on time delivery with superior quality and competitive pricing. What every contractor and homeowner needs from their ready mix concrete supplier is really quite simple: delivery of the right mix of concrete, in the right quantity, at the right time, at a fair price.

• Mobile Plants

• Pump Service silvios@scribanteconcrete.com www.scribanteconcrete.co.za

“CEMZA HAS BEEN EXTREMELY FORTUNATE TO FORGE STRONG PARTNERSHIPS WITH CERTAIN KEY CUSTOMERS AND SUPPLIERS”

Africa Outlook issue 83 | 47

CEMZA FLSmidth which manufactured Cemza’s packing system.

“Cemza has been extremely fortunate to forge strong partnerships with certain key customers and suppliers,” Agrawal says.

“Our partnership with the major retailers of building materials – including the likes of Scribante, Massmart, Cashbuild and Spar Group – has positioned us as the preferred

cement brand in the Eastern Cape within the first year of our operations.

We also hugely appreciate Standard Chartered Bank for being extremely supportive of our business.”

A GOOD CORPORATE CITIZEN Doing business with suppliers is just one way Cemza is benefitting the surrounding community.

As well as providing employment

opportunities and looking out for the wellbeing of its staff, the company is equally eager to impart a positive, lasting impact more widely across the local area.

Agrawal highlights a recent corporate social responsibility initiative with well-known explorer Riaan Manser and the Sunflower Fund, a body devoted to the fight against blood-borne diseases such as leukaemia.

“WE ARE WORKING ON A STRATEGY TO EXPAND OUR FOOTPRINT INTO OTHER PROVINCES IN SOUTH AFRICA. WE ARE ALSO WORKING ON OPPORTUNITIES FOR EXPORT OF OUR PRODUCTS INTO NEIGHBOURING COUNTRIES AND THE INDIAN OCEAN ISLANDS”

48 | Africa Outlook issue 83

CONSTRUCTION

Cemza hopes to reverse the trend of reliance on imported cement in South Africa

“We ran a campaign in February 2020 called the ‘Cemzaman Challenge’, which involved Riaan along with his sidekick undertaking certain epic adventures with a bag of Cemza cement,” the Managing Director explains. “The campaign culminated in a donation of R150,000 to the Sunflower Fund by Cemza.

“For us as a proudly South African company serving our people, promoting skills and having a positive impact on the community that we operate in is as important as being the most trusted cement expert.”

And it is this ethos that will guide Cemza in its future growth and development, its commercial success enabling it to contribute even greater amounts of resources and time to the

people and communities surrounding its operation in the Eastern Cape.

Agrawal outlines ambitions to enhance the brand positioning of the company as a local market leader, a status which should enable it to fully remove any reliance on imported cement products. Over in the Western Cape, Cemza is aiming to become the second largest supplier, with other South African provinces also on the firm’s radar.

Concluding the conversation, Agrawal adds: “Cement demand in South Africa has generally been flat over the last few years.

“But while volume growth has been slow, we see opportunities for expansion as a large portion of the existing capacity in the country is

very old, and there has generally been a lack of investment in the cement sector here, which has led to growth in imports.

“We are working on a strategy to expand our footprint into other provinces in South Africa. We are also working on opportunities for export of our products into neighbouring countries and the Indian Ocean islands.”

Tel: +27 10 446 8451 safinaazk@cemza.co www.cemza.co

Africa Outlook issue 83 | 49

TIGER ANIMAL FEEDS AND TIGER CHICKS

50 | Africa Outlook issue 83

AGRICULTURE

Nourishing Growth Tiger Animal Feeds and Tiger Chicks contribute to the growth and profitability of Zambian farmers with its high-quality animal feed, world class broiler genetics and technical support

Writer: Dani Redd | Project Manager: David Knott

A

cross the world, demand for protein is growing in line with the world’s population. What this means, of course, is that demand for animal feed is growing alongside it.

In Africa, there is a growing requirement for animal feed. Maize – which is the main ingredient in animal feed – is also a staple food to feed the human population. This means there can be a significant requirement for these commodities, placing strain on the resources to produce them.

But one company has been doing its best to ensure farmers are able to purchase high-quality, cost-efficient animal feed.

Enter Tiger Animal Feeds, which has been one of the leading animal feed manufacturers and suppliers in Zambia since 1996. It provides pet food as well as various types of livestock feed and nutritional supplements to Zambia and the region.

“Our world-class range of feeds, strong distribution network and on-site nutritional service has greatly contributed to the growth and the profitability of farmers and the establishment of Africa Outlook issue 83 | 51

TIGER ANIMAL FEEDS AND TIGER CHICKS

Bühler Founded all the way back in 1860, Bühler is still a family owned business to this day with current CEO Stefan Scheiber only the sixth since its foundation.

Our animal feed solutions help you produce top quality feed and to make economical use of your raw material and energy. They come in a modular design so you can customise them to match your exact production processes.

ABOUT ASTRAL FOODS Astral Foods is the largest integrated poultry producer in South Africa. It employs in excess of 12,000 staff and owns 6,949 hectares of land across many different company brands.

Its key activities are animal feed, broiler genetics, sale of dayold chicks and production and distribution of a variety of fresh, frozen and value-added chicken products.

KEY BRANDS: • Festive and Goldi • Mountain Valley • County Fair • National Chicks • Ross 30 • Meadow Feeds • Provimi SSA • CAL Labs • Tiger Chicks • Tiger Animal Feeds • Mozpintos

52 | Africa Outlook issue 83

new farmers through training and aftersales support programmes,” explains Herman Nienaber, Chief Operating Officer at Tiger Animal Feeds.

SUPPORTING LOCAL FARMERS Nienaber started working at Tiger Animal Feeds in 2009, becoming COO in 2013, and brings his long-held passions for agriculture and nutrition to the role.

“I was raised on a maize farm in South Africa and as a result I developed a love for agriculture and the agricultural environment from a young age,” he explains. “After my full-time studies I took up employment as a Nutritionist at NuTec SA in January 2006, which was part of the Astral Foods group.”

Astral Foods is the parent company to Tiger Animal Feeds – and is one of the largest integrated poultry producers in Africa – so moving from one of its companies to another was a logical step for Nienaber.

Indeed, the COO is proud to be working for a company that helps local farmers.

“Tiger Animal Feeds supports local Zambian farmers, as it procures the bulk of its raw material inputs – such as maize, soya beans, sunflower cake – from small-scale farmers,” Nienaber explains.

We also offer services, maintenance, repairs, automation, technology support and training to our customers.

Our plants and equipment meet the most stringent sanitation standards for sustainable animal feed production.

We are a proud partner of Tiger Animal Feeds and happy to support the growing feed market in Zambia with our solutions which enable our customers to gain a competitive edge.

Beyond animal feed, Bühler supports the global move towards healthy food and clean mobility through numerous activities.

Worldwide, two billion people each day enjoy foods produced on Bühler equipment, and one billion people travel in vehicles manufactured with parts produced with our machinery, putting us in a unique position to help tackle some of the world’s most pressing, long-term challenges.

www.buhlergroup.com

Total solution provider for animal feed.

Buhler (Pty) Ltd. Apollo Park Unit 3A & 4A,Plot 35275 Mwembeshi Road Ext. P.O.Box Postnet 10 Kabulonga, Lusaka / Zambia Tel +260971397212

TIGER ANIMAL FEEDS AND TIGER CHICKS

The company’s nutritional service has greatly contributed to the growth and the profitability of farmers and the establishment of new farmers through training and aftersales support programmes “The only imported raw materials are ingredients that are not locally produced, such as vitamin and mineral premixes. Small-scale farmers are critical as suppliers to Tiger Animal Feeds.”

In fact, in 2006 the company was awarded the Zambia National Farmers Union (ZNFU) Distinguished Service to Agriculture Award. This highly prestigious honour came about thanks to the company’s strong distribution and supply network, as well as the aid it provides local farmers.

“The company has contributed to the growth of small-scale farmers and has helped establish new farming enterprises through training and aftersale support programmes,” explained ZNFU President Guy Robinson, at the time of the award.

54 | Africa Outlook issue 83

Tiger Animal Feeds’ nutritional helpline was cited as one example.

These days, an on-site nutritional service greatly contributes to the growth and profitability of the farmers who are its clients. So too have the products themselves, which offer high levels of nutrition.

The Winterbreker 80 Concentrate, for example, is a winter lick mineral concentrate which can be mixed in various ratios to make up a number of different winter licks and production licks.

These can be used to maintain bodyweight during the dry season, supplementing protein deficient in natural grazing. It contains the correct levels of macro minerals to ensure optimal metabolic function,

sugars and starches (from grain and molasses) and places an emphasis on trace minerals associated with fertility.

This enables farmers to increase the body condition score of livestock, thereby enhancing the animals’ chance of conception.

Another range of products – pullet starter (for birds aged zero to 42 days), pullet grower (42 to 105 days) and pullet developer (for birds aged 16 weeks and over) – are available for rearing laying hens. Feeding the birds according to this timeline ensures each age group meets its target weight; birds that are too light or heavy do not produce eggs as they should. Furthermore, birds suffering from inadequate nutrition are more susceptible to the cold and illnesses.

These two examples provide insight into the thoughtful scientific research that goes into all Tiger Animal Feeds’ products. They also highlight the importance of adequate balanced nutrition to aid animals in maintenance and overall production requirements as well as generally maintaining good health, something the COO is aware of.

“Tiger Animal Feeds’ continued and historical success is driven by ensuring nutritional supremacy and the consistency of supplying high quality animal feeds, combined with nutritional solutions and technical support to its customers,” Nienaber comments.

AGRICULTURE

Syndyton General Dealers

Tel 00260 977 448 991 Email allanphiri1967@gmail.com

Africa Outlook issue 83 | 55

TIGER ANIMAL FEEDS AND TIGER CHICKS HELPING HANDS When it comes to technical assistance, Tiger Animal Feeds has some fantastic tools at its disposal. For a start, there’s its laboratory – established in 1998, it has been at the forefront of acquiring the latest equipment to test and analyse raw materials (such as maize, soya and sileage) and animal feeds. Its state-of-the-art NIRS (Near Infra-Red Reflective Spectroscopy) service can provide accurate results in as little as 12 hours. This equipment enables it to offer its clients analyses of the feed and raw materials on their farms.

The laboratory is affiliated to one of South Africa’s leading

Herman Nienaber, Chief Operating Officer

laboratories – CAL (Central Analytical Laboratories) – and is able to offer its top-level services to clients too.

“Tiger Animal Feeds differentiates its stock feed on quality by making use of its parent company Astral Food’s vast technical experience and knowledge,” the COO says. “This ensures regular product and input testing, quality control, and research and development. Its systems also enable full product traceability.”

Meanwhile, the group’s human resources policies have also helped Tiger Animal Feeds provide a fullyintegrated training and development programme for its staff.

“Tiger Animal Feeds’ continued and historical success is driven by ensuring nutritional supremacy and the consistency of supplying high quality animal feeds, combined with nutritional solutions and technical support to its customers” 56 | Africa Outlook issue 83

AGRICULTURE

“Our staff are key to our success and have been over many years,” Nienaber continues. “Through our parent company’s human resource development programmes, a number of our staff have been trained and upskilled. We are guided by the group’s human resource policies.”

It goes without saying, then, that Tiger Animal Feeds is proud to be part of an expert consortium, which allows it to provide an excellent product portfolio and a wide range of training

and support services.

A decade ago, it even set up its own partner company, Tiger Chicks, a breeder farm and hatchery providing day-old broiler chicks for the domestic and regional markets. Tiger Chicks introduced the first slow feathering broiler bird, the Indian River broiler, to be supplied to the Zambian market.

“It has been a great 10 years and we are looking forward to many more years of adding value to the Zambian poultry industry through the

world-class breed we are supplying to the market,” Nienaber says.

The conversation, then, ends on an optimistic note. Despite the recent COVID-19 outbreak, the COO feels positive about the future.

“As the world is going through a very challenging period at the moment we aim to continue serving the Zambian people, ensuring we keep on supplying the highest quality broiler genetics and stock feeds, and doing our part in ensuring food security in the years ahead,” he concludes.

TIGER ANIMAL FEEDS AND TIGER CHICKS Tel: +260 96 6763 650 sales.office@tigerfeeds.com.zm www.tigerfeeds.com

Africa Outlook issue 83 | 57

YARA CÔTE D’IVOIRE

58 | Africa Outlook issue 83

AGRICULTURE

Keeping it Green in Côte d’Ivoire Yara Côte d’Ivoire is working with local farmers to ensure sustainable growth, through high-quality fertiliser and agronomic education Writer: Dani Redd | Project Manager: Vivek Valmiki

H

istorically, Côte d’Ivoire has been economically dependent on farming.

Back in 1960, agriculture accounted for 48 percent of the country’s GDP, predominantly thanks to its exports of cocoa. Fast forward to the present day and Côte d’Ivoire has also become one of the world’s biggest exporters of cashew nuts – palm oil, tropical fruits, cotton and rubber are also important agricultural exports.

However, according to World Bank, despite the country’s economic situation improving, since 2012 agriculture has contributed just 14 percent of GDP growth.

There are several reasons why Côte d’Ivoire’s agricultural sector has been constrained. Unpredictable weather patterns caused by climate change and deforestation have led to low crop yields in previous years.

Another reason is that agriculture is mainly conducted on a small scale, and smallholders often lack access to products that can increase yields, such as fertilisers.

Kanigui Yeo, General Manager of Yara Côte d’Ivoire, sees opportunities where there are challenges in the agricultural sector

But Kanigui Yeo, General Manager of Yara Côte d’Ivoire, doesn’t just see problems – he also sees potential for growth and change.

“Agriculture is a challenging but exciting space to be working in,” he says. “When you look at all the agri value chain in Côte d’Ivoire you will see problems and opportunities as well.

The infrastructure is poor, and more than 95 percent of farmers are smallholders with limited literacy, growing mainly cash crops for the direct export market.

“Most of them don’t apply the basic good agricultural practices and don’t have access to agricultural inputs.

They are also excluded from the banking sector. This is a dark picture, but it means there are a lot of opportunities for companies with purpose.”

And Yara Côte d’Ivoire is one such company. It is a division of Yara International with a simple, but hugely important vision: to help feed the world, while protecting the planet.

Yara International itself is a company founded in 1905 with the aim of Africa Outlook issue 83 | 59

YARA CÔTE D’IVOIRE solving an emerging famine in Europe, with a unique reputation as the only global crop nutrition company in the industry. It has a worldwide presence of around 16,000 employees and operations in over 60 countries, reporting revenue of $12.9 billion in 2019.

30 YEARS IN CÔTE D’IVOIRE Yara Côte d’Ivoire launched in 1990, and over the past few decades has been heavily involved in agricultural development in the country.

Its agronomists work with farmers to help them find the correct fertiliser solution for their needs. It offers premium fertilisers, including nitrophosphate compounds, liquid foliar calcium nitrates and micronutrients. It also works closely alongside research bodies to develop many of country’s current fertilisation protocols.

Based in the industrial area of Vridi in Abidjan, Yara Côte d’Ivoire employs around 50 staff, and has a network of more than 50 key distributors.

Since the 1990s, Yara Côte d’Ivoire has been collaborating with the CNRA (Centre National de Recherches Agronomiques), a government research unit which has added further credibility to its research and development. The CNRA has

approved many of Yara’s fertilisation protocols for key crops, such as its NPK blend and Nitrabor for cocoa.

“When you add this collaboration to the huge agronomic knowledge of Yara globally, it makes us the place to go for specialities or best products in the market,” Yeo explains. “Strong global and local R&D, key partnerships and non-negotiable quality standards are the major enablers of our longterm collaboration with CNRA.” Since his appointment as General Manager, Yeo has been focussing on improving team morale and rebuilding the company’s profitability. He also has the challenging task of having to balance capacity with local demand for Yara Côte d’Ivoire’s products.

“There is a critical need to increase capacity to match the level of the demand in recent years,” he says. “In 2018, Yara decided to downsize the activities in Côte d’Ivoire to focus on a smaller but more profitable business.

This decision came with a reduction in the blending and storage capacity.

“But two years later, we are stuck with a high demand and a limited capacity during the first half of the year. It’s not a local decision and we’ve started discussions with the stakeholders – they are speaking with our parent company to make this happen.”

Yara operates with a formidable distribution network

60 | Africa Outlook issue 83

EMT EMT is a renowned producer of blending, bagging, transporting and coating equipment in the fertiliser industry. Together with Yara’s predecessor Hydra EMT, we have helped shape the European fertiliser blending market.

Nowadays the two companies are closely involved in the development of the African fertiliser industry.

With its high quality, long lasting products EMT has been supplying the African market for more than 25 years. Tailor made systems, suited to each customers’ needs is what has provided the company with its reputation of quality and give EMT the status of preferred Yara supplier.

www.emt.tech

There are other ways in which belonging to a global company is beneficial to Yara Côte d’Ivoire.

For example, it works closely with Yara Switzerland to procure raw materials from the company’s network of global suppliers. Maintaining a good relationship with these suppliers is, according to Yeo, key to the company’s success.

“During the peak season, a shortage on a key raw material can lead to contract loss and penalties in the case of some tenders. It is therefore important for us to have a tight and collaborative relationship with our suppliers in respect with our code of business,” he explains.

Another way in which Yara Côte d’Ivoire can benefit from the wider organisation is through Yara’s position as a leader of digital farming devices.

Although Yeo acknowledges this position contrasts with what happens on the ground in countries like Côte d’Ivoire, several digital initiatives have

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LEADERSHIP FOCUS

What appealed to you about the role of leading Yara’s Côte d’Ivoire division, and how have you been able to help turn the business around over the past year?

KANIGUI YEO: “Leading Yara Côte d’Ivoire was an exciting challenge and a big risk the leaders of Yara Africa took with me. I had joined the company six months ago when the former Country Manager resigned.

I was coming from Unilever and I had a FMCG background with a strong experience in marketing and distribution.

“I joined as the Commercial Manager and my mandate was

in the middle of many challenges.

The business was not profitable and team morale was low, people were resigning, and the blending lines were slow and breaking frequently.

to reinforce the open market distribution contribution in the business. However, after the resignation of my former boss, they appointed me as General Manager

“I had to build a team aligned with the new direction, manage costs effectively, make sure the new line was commissioned and convince the market to trust us despite delays in some deliveries.

It was a difficult task and I had to recruit and rely on a few key people who believed we could make it happen. We took tough decisions regarding pricing and costs. In the end, it paid off: The EBIDTA target was achieved at 125 percent and delivered a positive net result for the first time in few years.”

Africa Outlook issue 83 | 61

YARA CÔTE D’IVOIRE

been launched. A Facebook page enables it to share information about products and activities, and to reach out to farmers in remoter areas.

However, most exciting is a recently acquired smart scanner that improves the ease of conducting soil analyses.

“The smart scanner is very effective as it creates trust alongside providing data for the farmers and cooperatives regarding the fertility of their soil, the nutrient deficiency and the recommended needs,” Yeo adds.

GROWING SUSTAINABLY Gaining the trust of farmers is an important step in Yara’s mission to help improve crop yields in Côte d’Ivoire, as it enables the company 62 | Africa Outlook issue 83

“DURING THIS CRISIS OF COVID-19, WE HAVE ALSO BEEN A KEY PLAYER TO HELP THE AUTHORITIES AND COMMUNITIES IN THE COUNTRY WITH A DONATION IN KIND AND IN MONEY TO BUY SOME PERSONAL PROTECTIVE EQUIPMENT” to transfer its 115 years’ worth of agronomic knowledge to them.

“In the communities, we work with lead farmers to train, coach and support to improve their agronomic skills, their practice and grow them to become ambassadors,” Yeo explains.

“During this process we provide the fertilisers and the relevant trainings to ensure they increase their yields, income and standards of living.”

In other words, Yara is doing a lot more than simply selling fertiliser. It is also helping educate farmers in sustainable best practice. While it aims to expand its output, it wants to do so in an environmentally friendly manner.

“We are committed to sustainably feeding the populations where we operate, and we ensure that our operations comply with the standards of environment and climate

AGRICULTURE

“We are committed to sustainably feeding the populations where we operate, and we ensure that our operations comply with the standards of environment and climate protection” protection,” the General Manager says.

The conversation, perhaps inevitably, moves onto the current COVID-19 crisis.

Yara, like millions of other companies across the world, is working hard to limit the virus’s impact, and it also wants to help mitigate the effects upon local communities.

“During this crisis of COVID-19, we have also been a key player to help the authorities and communities in the country with a donation in kind and in money to buy some personal protective equipment,” Yeo says.

Interestingly, the pandemic has given the General Manager an epiphany.

“At Yara we have the mission to responsibly feed the world and protect

the planet,” he says. “At first I didn’t understand the extent to which this was true. But the consequences of the COVID-19 epidemic have made me realise that we have a very important role to play in local food security.”

Yeo quotes the statistics – 50 percent of rice consumed in the country is imported from Asia. Onions and tomatoes are imported from Europe, despite the fact they can be grown in the country. Sub Saharan Africa has the lowest yields per hectare in the world.

“To tackle these wicked problems, we will need to truly collaborate as an industry with the governments, NGOs, the banks with the purpose of building a self-sufficient food production

industry in Côte d’Ivoire and in Africa,” he says.

“I believe that we have the human resources, the skills, the lands and the technologies to make it happen.”

With its background in crop nutrition, high quality products and sustainable values, Yara Côte d’Ivoire has every chance of succeeding in its mission.

YARA CÔTE D’IVOIRE Tel: +225 21 21 55 00 yaraciserviceclient@yara.com www.yara.ci

Africa Outlook issue 83 | 63

LONDANI COAL

S

Powered by More than Coal

outh Africa is a country powered by coal. Last year it produced 258.9 million tonnes, around 70 percent of which was used domestically (taking care of 80 percent of the country’s needs), with the rest being exported, activity which accounts for nine percent of the world’s supply.

64 | Africa Outlook issue 83

Not only is Londani Coal ambitiously expanding operations, it is also determined to continue empowering staff and engaging the local community Writer: Dani Redd | Project Manager: Josh Mann

Needless to say, coal mining is a major contributor to the country’s GDP, also providing around 100,000 direct jobs.

But that’s not to say the mining industry is without its challenges.

According to Selim Kaymak, Chief Executive Officer of Londani Coal, net investment in the industry has

MINING declined by 15 percent in the past eight years, while major energy producers face their own difficulties – high debt levels and operating costs, capacity constraints and aging equipment.

And then, of course, there’s the ongoing impact of COVID-19.

“The demand for electricity and liquid fuel products is dropping and the producing entities have limited stockpiling space for stock feed or end products,” Kaymak says. “This will in turn impact or disrupt current coal supply streams which will have an adverse effect on a market already under pressure.”

It is hard to imagine how companies can survive, let alone thrive, in such challenging conditions, but Londoni Coal is doing just that.

A YOUNG AND DYNAMIC COMPANY The firm was established in 2006 in the South African province of Mpumalanga. In January 2017 it re-commissioned a processing plant and a mine, Nndanganeni Colliery, which is located in the Witbank/ Middleburg coalfields – production started shortly afterwards.

The complex consists of two open cast mining pits and a DMS processing plant, and produces around 770 kilotonnes of saleable, high quality export product per annum.

Londani employs around 380 full-time employees and contractors who work in the mine, processing plant, material handling and on-site laboratory. It is managed by a dynamic

team, overseen by Kaymak, a political science graduate who first became interested in mining when he moved to South Africa to complete a Master’s in Business Administration at the University of Pretoria.

“After completing my MBA, I decided to stay in South Africa,” he adds. “I saw the mining industry as a very attractive, professional endeavour which requires an understanding of the global energy sector. On the other hand, it was also a good space to exercise and implement the knowledge I had gained from several international activities and in interacting with various government entities and NGOs, as well as business industries.

Africa Outlook issue 83 | 65

LONDANI COAL “Through my academic education I was afforded an opportunity to work for several international entities, which enabled me to understand both European and African economies.

How important are partner and supplier relationships to the success of your business?

SELIM KAYMAK: “We treat all contractors and suppliers as partners in our business. An efficient and effective supply chain system with a solid, trusted and reliable relationship with critical suppliers of services is a definite qualifying factor to conduct cost effective, profitable and sustainable business in this environment.

“We value each supplier and stakeholder throughout the value chain and foster longstanding relationships, which is key for current and future operations.

As mentioned before, our business model is built on using contractors for the majority of our work and our success proves the aforesaid statement.”

66 | Africa Outlook issue 83

Londani Coal allowed me to make practical use of these experiences – the job opportunity was the perfect match.”

INVESTING IN TECHNOLOGY Since inception of Londani Coal, the CEO has focussed on increasing profitability at the mine by hiring an expert team, and by expanding operations.

During 2018, the company opened up a new box cut within its current mining right, giving it access to highgrade coal that in turn created market opportunities abroad. Then, in 2019, it launched an exploration drilling programme.

“The main purpose is to identify additional resources and to extend our current mining operations within the immediate right,” Kaymak explains.

“This will enable us to fully utilise our established complex and maximise returns on invested capital.”

Currently, Londani is actively conducting studies in the surrounding area, hoping to identify new coal reserves.

“We are therefore always open and willing to work with neighbouring mines and reserve owners,” Kaymak continues. “Through this, standing relationships have already been established and value has been

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Combining innovative technology with the funding and delivery of world-class water and wastewater treatment projects and services, we aim to sustainably reclaim water affected by industrial and human activities.

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created. We would like to maintain this momentum and exploit all possible opportunities.”

The CEO is aware that as a junior mining company, it is vital for Londani Coal to form synergies with other mining outfits to survive in a challenging industry environment.

MINING

Enabling sustainable mining, while supplying reliable off-grid water supply Through effective, proven mine water treatment www.nafasiwater.com info@nafasiwater.com

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Africa Outlook issue 83 | 67

LONDANI COAL

The firm has also been investing in technology to ensure the safety and productivity of its operations, including active vehicle tracking and camera monitoring solutions.

“Investigation of incidents, with the aid of these technologies, has aided a lot in identifying root causes and enabled us to install permanent corrective actions or measures to prevent incidents,” the CEO says.

Technological advances also help with production and measuring, improving efficiency and accuracy.

Here, Londani Coal makes use of flyover surveys and partners with leaders in the field for accurate measuring, image-making and 3D modelling.

“This real-time data is used in our costing models, where each aspect of the operation can be quantified and qualified,” Kaymak explains. “We also have full-time geologists with specialised software that assess each step of 68 | Africa Outlook issue 83

our current and future mining areas to ensure we gain as much as possible by minimising coal losses.

“Monthly production areas are constantly coupled and measured against initial geological models of the area, and we manage mining gains and losses very accurately.”

HELPING IN THE COMMUNITY Such attention to detail is fundamental to a mining company’s longevity.

However, for Kaymak, mining isn’t just about profit – it’s also about people. Londani Coal fosters a positive working environment where staff are encouraged to take ownership of their area of responsibility, thereby empowering them to reach their full potential.

“We strive to maintain a participative leadership culture throughout the business where we work together and support each other

from top to bottom, irrespective of title or position,” he explains.

“Through the years we have mastered the field of dealing with diversity within the work environment. We are a very diverse team with vastly different backgrounds and demographics, but we make it work and use it to the full potential of the business.”

The company’s caring attitude extends beyond its staff to society as a whole. It is committed to ensuring that the community living within its area of operations are engaged and empowered. As well as stimulating the microeconomy by providing jobs, Londani takes an active role in helping local people.

“Our aim is to provide the best opportunities by working hand in hand with local government and non-governmental organisations according to an approved SLP plan,” Kaymak explains. “We believe that each skill

MINING

or infrastructure development has a lasting impact on the lives of our local people, which will remain for future generations to come.”

Londani Coal has helped organise events for World Aids Day, Mandela Day and Women’s Day, as well as establishing quarterly health campaigns in the community. It also pursues and conducts skills development as part of ongoing business operations. It trains community members to use mining machines and organises formal apprenticeships to boost employability and empowerment.

Kaymak also proudly reports that Londani Coal built a hall for Ipani Primary School, which is alongside the community and can accommodate up to 400 learners. It also helps with ad hoc projects for the students.

PLANNING AHEAD Importantly, the COVID-19 pandemic

has not dampened Londani Coal’s spirit. As the conversation draws to a close, Kaymak reveals plans to utilise the company’s mining right in full, alongside ambitious plans for expansion.

“As mentioned, we are actively looking for new reserves and partners to extend our current footprint in the mining industry. This is high on our list of priorities over the next 24 months,” he says.

“We will furthermore aim to grow on our existing customer base and want to establish more large-scale offtake agreements, both on the export and local market. Having said this, it will only be achievable by establishing joint ventures or partnerships with industry-leading companies.”

As the company expands, it will also work towards reducing operational costs and increasing profitability, moves which will help it to improve

financial returns for its stakeholders.

It will do all this while concentrating on maintaining positive relations with suppliers, contractors and the surrounding community, as well as keeping its people motivated.

And it is here that Kaymak ends the conversation by reiterating Londani Coal’s people-first values.

“In closing, we have always and will continue to focus on attracting and retaining the best employees in the market,” he says. “Our employees are the heartbeat of this company.”

LONDANI COAL Tel: +27 11 684 2764 info@londanicoal.co.za www.londanicoal.co.za

Africa Outlook issue 83 | 69

ROCKSURE INTERNATIONAL

GHANA’S

Gold Standard

G

old mining has long been a staple economic activity in Ghana.

Historical sources show that gold was mined in West Africa as early as the fifth century, well before European settlers began to monopolise the trade during the colonial era.

And while it is uncertain when exactly gold mining began in Ghana specifically, it continues to be the nation’s most significant domestic revenue generator. In 2017, for instance, total mining fiscal receipts paid to the Ghana Revenue Authority stood at around $370 million, up 31 percent on the previous year.

This illustrious history and relative stability of the current marketplace make Ghanaian mining an attractive proposition for organisations and individuals to pursue opportunities.

For instance, Rocksure International established itself as a provider of mining services in the country just over 10 years ago.

Through execution of a localoriented strategy, the company has built up considerable capacity and flexibility for implementing measures to meet the challenges of planning, equipping and staffing various mining sites, with operations also in Mali.

For Fabian Limberger, Chief Commercial Officer and one of very few expatriates managing the 70 | Africa Outlook issue 83

Rocksure International has been providing the full value chain of mining services for more than a decade, rising from humble beginnings into a 1,000-strong, Ghanaian-led enterprise Writer: Tom Wadlow | Project Manager: Josh Mann

MINING

Africa Outlook issue 83 | 71

ROCKSURE INTERNATIONAL company, the chance to explore this industry was too good to turn down.

With a background in finance and investment (in particular with mergers and acquisitions), Limberger worked for civil and mechanical engineering companies before joining Rocksure International nine years ago, his previous role being in Ghana with a firm which his current employer has shares in.

“Honestly speaking, I knew little about the mining industry before joining Rocksure,” he recalls. “I realised very quickly that the sector has TA L K I N G T E C H N O L O G Y

What technology is transforming your industry, and what is Rocksure’s approach to its adoption?

FABIAN LIMBERGER: “Generally speaking, trends such as automation in conjunction with advanced IT and AI applications are impactful.

“However, we feel that the decisions to potentially use certain ‘gadgets’ always need careful due diligence with regard to the actual suitability in its applicable environment. The nicest electronics and screens ultimately do not help if you can’t service and repair them out there in the bush.

“Having said that, careful selection of equipment is key for us, and we do invest into modern applications such as the implementation of a state-of-theart ERP system, or more recently the use of modern 3D simulators to train operators. These are just two examples of our recent investments into technology.”

72 | Africa Outlook issue 83

splendid opportunities for finance professionals to thrive and to apply their knowledge from various angels.

“The business case of Rocksure International as I saw it in particular then – and also still do now – provided a fascinating opportunity for me.”

The fact Limberger is one of few non-Ghanaian professionals operating and managing the company is a source of tremendous pride, Rocksure growing from humble origins into an organisation that employs in excess of 1,000 people today.

It is a busy operation, the company able to offer services covering RC drilling, production drilling and blasting, load and haul operations, ROM pad management, and much more besides – its fleet consists of 105 units of major equipment, from 40-tonne articulated trucks to 150tonne ridged dump trucks.

Rocksure operates at 19 production drill rigs and works for three major mining clients in Ghana, activity which saw it move around 24 million bank cubic metres (BCM) and drill in excess of two million metres last year.

“Since last year we have also

been part of a joint venture with our majority partner AUMS to provide underground mining services for Anglo Gold Ashanti Limited in Obuasi,” Limberger adds. “This has thereby enabled us to enter into this separate market segment of mining.”

POWERED BY PEOPLE This new venture is testament to the reputation built up over 10 years of operations in Ghana.

“Rocksure seeks to provide firstclass service to our clients, delivering on all the needs and requirements in a cost-effective way without compromising on quality, safety and the environment,” the CCO continues.

“We thrive to enhance our clients’ capacity to sustain and guarantee the social licence they operate with. Due to our excellent mining practices, our clients often win annual awards such as the best mining company organised by the Chamber of Mines of Ghana.”

What particularly stands out, for Limberger, is Rocksure’s adherence to internationally recognised best practices while being a truly native West African company.

MINING

At the company’s 10-year anniversary celebration, many employees were given awards for their dedication and service to the company

Africa Outlook issue 83 | 73

ROCKSURE INTERNATIONAL This combination of global quality and local knowhow is made possible by the firm’s greatest asset – its people.

“We have wonderful staff,” Limberger says. “The core team in management roles and quite a high number of staff have been with the company continuously from the outset.

“Recently in our 10-year anniversary celebration, so many employees were given awards for their dedicated service to the company. One can indeed feel that there is a certain pride to prove the capabilities of an often so called ‘local’ firm.”

To further help recognise the contribution of staff and operate organisational communications more effectively, Rocksure has just implemented a new HR management system, run on software which helps the company to individualise relationships with employees.

For example, it will ensure birthdays and important anniversary milestones are always celebrated. And while these might seem like small gestures, for Limberger it helps to define a positive company culture.

“I personally think that such gestures carry some weight in terms of employee satisfaction and loyalty,” he adds.

“Beyond those, we are constantly improving our capability to career plan for employees within our organisation.

We invest into training and upgrading skills, and we are pleased to state that our remuneration structure, benefits and general working conditions are competitive in this international labour market.”

“Notwithstanding our expressed gratitude, I wish to state – with tongue in cheek – that an element of competition always helps to keep everybody awake”

BUILT ON PARTNERSHIP Equally as important to Rocksure’s success and standing are relations with people outside of the organisation, be it external partners or members of the wider community who are supported by its operations.

Limberger is quick to highlight the indispensable role of suppliers, many of which have been loyal over many years, offering their creativity and support in times of difficulty and in turn acknowledging that Rocksure is itself a reliable, dependable business partner.

“Our success would not be possible without the support of many of our partners,” the CCO comments.

“Notwithstanding our expressed gratitude, I wish to state – with tongue in cheek – that an element of competition always helps to keep everybody awake. In business, everybody must deliver and perform well to remain in the game.”

Communities more widely are also important stakeholders in Rocksure’s activities.

Not only do they provide the supply of certain goods, on-site

MINING

Mining continues to be a key contributor to Ghana’s GDP

That Rocksure is able to support livelihoods and benefit the lives of so many Ghanaian families is a source of pride for Limberger, all adding to the key message that the company is 100 percent local catering being one such example, over time the firm has trained many men and women to become qualified professionals in numerous disciplines across the organisation.

That Rocksure is able to support livelihoods and benefit the lives of so many Ghanaian families is a source of pride for Limberger, all adding to the key message that the company is 100 percent local.

“Our mission statement is ‘to foster indigenous participation in the exploitation of national resources for effective development’, and we really mean that,” he says.

This will no doubt guide Rocksure’s future development. Indeed, the company is looking to enjoy another successful 10 years of operations as it enters the next chapter of its development in Ghana and further afield, Limberger revealing that a series of meetings are underway to identify and prioritise objectives for the near and medium term.

Concluding the conversation, he says: “It is a reality of being a contractor that one can’t always pick and choose as one would like.

“We are grateful to have been entrusted with the work that we are

undertaking, and we are determined to continue delivering and improving.

Our hope is that this will also allow us to win further jobs to secure the longevity of our company beyond the signed lifespan of our current projects.”

ROCKSURE INTERNATIONAL Tel: +233 289 330 033 info@rocksureintl.com www.rocksureintl.com

Africa Outlook issue 83 | 75

BLACK ROYALTY MINERALS

76 | Africa Outlook issue 83

MINING

A Beacon for Quality and Responsibility Black Royalty Minerals is showing that coal mining continues to be a vital socioeconomic contributor in South Africa, its Chilwavhusiku Colliery being launched in 2018 Project Manager: Josh Mann

Africa Outlook issue 83 | 77

BLACK ROYALTY MINERALS

S

outh Africa and coal go a long way back.

The country’s reserves are abundant thanks to the almighty Ecca deposits, a stratum of the Karoo Supergroup and thought to be anywhere between 250 and 280 million years old.

Located mostly in the north-eastern quarter of South Africa, the huge resource has been fundamental in powering the nation’s development since coal mining became mainstream in the late 19th century, its growth falling roughly in line with the start of goldmining on the Witwatersrand.

Either side of the Second World War saw mass industrialisation pick up across South Africa, which included a major programme of building power stations, particularly on the coal fields

of Witbank and Delmas, as well as Sasol’s major coal-based synfuels and organic chemicals complex at Secunda.

Given the lack of success in finding other fossil fuels, coal was and remains a critical source of fuel for commercial and industrial activities in the country today.

In Bronkhorstspruit, a small town east of Pretoria, Black Royalty Minerals launched its first colliery in 2018.

The company is part of the Makole Gorup and is ambitious when it comes to growth, the firm not only looking to maximise the potential of the Chilwavhusiku Colliery, but also exploring other coal mining assets as well as the possibility of working with other minerals throughout South Africa.

POWERFUL PARENT Black Royalty Minerals is a subsidiary of the Makole Group.

Makole Group is a South African 100 percent black owned conglomerate predominantly working in infrastructure, property development and mining fields, although it does have other business interests outside of construction and mining.

The group was established by Ndavhe Mareda, who maintains a hands-on role in the organisation, the Chairman involved in the overseeing of all construction and mining aspects of the business.

Milele Group Milele Group is a diversified investment holding company specialising in coal mining and beneficiation, logistics and agribusiness .

This black, female-owned powerhouse is steered by its exceptional young and dynamic geologist and businesswoman with a vast experience in the coal mining industry, CEO- Zandile Mdanda.

The company champions for women empowerment and transformation through excellence in business. To achieve this, the company leans on its qualified and experienced executives whose main objective is to ‘do today what will last forever’.

Milele Group is a well-known collaborator with other small to medium sized businesses, ensuring not only its own success but the growth and impact of other businesses in the larger economy.

Some of its core clients are BRM and cement manufacturing company, Lafarge. Moreover, the Group is determined to play its part in empowering youth through employment and community giveback initiatives. Whether it be coal- or agri- business, Milele Group is proving itself a driving force in sustainable growth and fruitful investments.

On its webpage dedicated to Black Royalty Minerals, it states: “Makole Group’s strategy is two-pronged – maintaining and growing our South African operations, integral to which is diversifying Black Royalty Minerals’ mineral resources assets and revenue streams such as export opportunities.”

Zandile Madanda - CEO

www.milelegroup.com

78 | Africa Outlook issue 83

We leverage our existing network of business contacts to promote a well-diversified investment portfolio

Milele Group, Building 3, First Floor.

Parc Nicol Park.

3001 William Nicol Drive, Bryanston, Johannesburg.

2191.

Telephone: (+27) 11 463 5554 Email: info@milelegroup.com

WWW.MILELEGROUP.COM

BLACK ROYALTY MINERALS “The vision of Chilwavhusiku Colliery is to provide clients with a market leading quality product which forms the essence of the establishment of the operation,” Black Royalty states on its website. “It is founded upon exceptional business ethics based on the visions of provision, inheritance, protection and proper product deliverance.”

Indeed, the company prides itself on driving sustainable development across all of its operations, an approach to business encapsulated by four key pillars: fair industry prices, excellent and honest services, uncompromised product quality, and continued increased capacity.

Not only this, the Chilwavhusiku Colliery was the first fully black-owned mine in South Africa, Makole Group’s Chairman Ndavhe Mareda standing

as an inspiration to others seeking to make it to the top of what has been a traditionally white-dominated industry.

Mareda’s story is one of a struggle to break the traditional monopoly, his success in doing so a landmark in the industry’s development into a more equal sector and responsible contributor to South Africa’s economy.

Speaking at the time of the mine’s opening, Mareda said: “Mining is a pillar and cornerstone of the South African economy. It is a foundation that you cannot ignore in conversations about economic development.

“We are looking at domestic and export markets and are working with a lot of traders… that will expand our horizons. In terms of specific markets, we will supply any sector that needs coal.”

The advances in digital technologies such as artificial intelligence (AI), big data, drones, automation and machine learning to name a few, has had a dramatic impact on how security solutions are created and implemented.

Technology can gather and process colossal amounts of information quickly and accurately. The possibilities of an integrated system of data-driven smart security technology are endless. Facial recognition software can identify and assess people and situations in seconds. Aerial drones can conduct silent perimeter patrols, observing and reporting to a centralised control room, where advanced AI gathers and processes the information, learning as it goes, instantly relaying any emergency alerts to local law enforcement teams.

Technology works hand in hand with the human element of security solutions and can make services like strike intervention, VIP protection, event security, and tactical response teams amongst others all that more effective.

IN FOCUS: BRONKHORSTSPRUIT Black Royalty Minerals likens its origins to two well-known sayings - make hay before sunset and fortune favours the brave.

It all began with the issuing of two mining permits within the Bronkhorstspruit district of Gauteng, around 50 kilometres east of Pretoria.

The smartest security companies are blending the benefits of technology with their workforce to enhance security capabilities in a truly integrated way.

BY HTONL - OWN WORK, CC BY-SA 4.0,

Bronkhorstspruit was thought to be founded in 1858 when a group of Voortrekkers settled in the area, initially named Kalkoenkransrivier until it changed in 1935.

The modern name derives from a military conflict.

On December 20, 1880, it was the scene of the Battle of Bronkhorstspruit, an important event in the early days of the First Boer War when a Boer commando ambushed a British army column.

Servest

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80 | Africa Outlook issue 83

Integrated Facilities Solutions?

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Servest’s Security division, founded 22 years ago, is one of the major private security companies in South Africa. Our 7 000 highly experienced, highly trained security officers are backed by regional and national command centres and serve our clients nationally.

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BLACK ROYALTY MINERALS

Indeed, key to Black Royalty Minerals’ plans for growth is its strict compliance with regulatory requirements, covering health and safety and the surrounding environment.

The company states: “Compliance with all the industry legal requirements is key if we are to grow our vision as a company. Whilst our country is regarded as a developing nation, our compliance process compares with some of the most sophisticated in the world.

“This is why we’re constantly gathering information through the annual Mining Indaba and the coal summits with other industry forums that are held each year around the 82 | Africa Outlook issue 83

Black Royalty Minerals ensures that at least 80 percent of its colliery workforce are sourced from surrounding communities

globe. It is our bid to ensure that we advance ourselves technically whilst in the compliance parameters of the highest degree, and keeping them relevant to our local industry.”

Black Royalty Minerals is also determined to operate in a socially responsible manner.

Its development plans for the Bronkhorstspruit community include ensuring that over 80 percent of its colliery workforce are sourced from surrounding communities.

Beyond this, the company is investing in promising young students by offering them tertiary education bursaries, and outsourcing to and collaborating with local

MINING

COAL IN SOUTH AFRICA The coal industry continues to be an important socioeconomic contributor to South Africa, as shown by the following statistics from Minerals Council South Africa: • The coal industry employed 92,230 people in 2019 (86,647 in 2018), representing about 19 percent of total employment in the mining sector.

• In 2019, 258.9 million tonnes of coal were produced (253 Mt in 2018) with total coal sales of R139.3 billion (R146 billion in 2018).

• The coal industry spent R61 billion procuring goods and services, most of it locally, thus contributing to the creation and maintaining of jobs in other industries.

• Around 70 percent of coal volume is consumed domestically and more than 70 percent of electricity demand is generated from coal power.

• Richards Bay Coal Terminal (RBCT) serves as the primary export port, and has a dedicated rail line.

‘BLACK ROYALTY MINERALS, WITH ITS RESPONSIBLE APPROACH TO BUSINESS AND AMBITIOUS PLANS TO GROW, LOOKS CERTAIN TO CONTINUE PLAYING AN IMPORTANT PART OF THIS ONGOING STORY’

business in advancing the economic circumstances of the surrounding community.

And the contribution coal mining makes will continue for many years to come, not only at the Chilwavhusiku Colliery but also across South Africa more widely.

Minerals Council South Africa confirms that the country’s major coal power stations will remain operational until at least the middle of this decade, with other thermal power stations being built by Eskom also ensuring the continued demand for coal for some time to come.

The livelihoods of more than 92,000 people are dependent on the industry,

making it the third largest mining subsector after gold and platinum, and no less vital in the ongoing socioeconomic development of the nation.

Black Royalty Minerals, with its responsible approach to business and ambitious plans to grow, looks certain to continue playing an important part of this ongoing story.

BLACK ROYALTY MINERALS Tel: +27 11 023 9380 info@blackroyalty.co.za www. blackroyalty.co.za

Africa Outlook issue 83 | 83

LEREXCOM PETROLEUM

Fuelling DEVELOPMENT IN THE DRC

Thanks to its young, dynamic team and ambitious leadership, LEREXCOM PETROLEUM is ready to supply fuel to enterprises across the Democratic Republic of Congo Writer: Tom Wadlow | Project Manager: Donovan Smith

84 | Africa Outlook issue 83

OIL & GAS

I

t is safe to suggest that the world would not be where it is today without petroleum.

Refined crude oil has shaped societies in a huge variety of ways, powering industrial development and mobility ever since the successful drilling of the first oil wells in Ontario, Canada, back in 1858.

However, not all parts of the world have fully exploited the transformational benefits on offer.

In the Democratic Republic of Congo (DRC), the industry is primed for development, something which local operator LEREXCOM PETROLEUM (LP) is helping to accelerate.

“Working in the petroleum space in

DRC is exciting and challenging at the same time,” comments Wilfrid Kilinda, the company’s Managing Director.

“The sector is in need of development, as many parts of the country don’t have access to petroleum products because of a lack of infrastructure.

“We are ready for roads and other industries to grow, and will respond to any situation put in front of us.”

LP was founded in 2017 by entrepreneur Jean Lengo, Chairman and CEO of the Ledya Group, which has LEREXCOM PETROLEUM under its umbrella of companies.

“This is one of many great achievements for our Executive Chairman,” adds Kilinda. “He has

a vision of promoting young generations and creating jobs. He took the risk of investing in a sector that was newly liberalised, and LP is the first company that took advantage of this development in the DRC.” Today LP stands as a leading private fuel logistics company dealing with storage and distribution of petroleum products such as gasoline and diesel.

It operates out of two terminals – one with a storage capacity of 36,000 cubic metres near Matadi, the chief seaport in the country, and another in the industrial zone of Maluku, in Kinshasa, with a storage capacity of 22,000 cubic metres.

Africa Outlook issue 83 | 85

LEREXCOM PETROLEUM LP serves both suppliers and distributors of fuel. These include clients which bring tankers to its facilities and companies which operate refilling stations or consume petroleum products for their own operations. Kilinda also reveals that the company currently has 210 direct employees on its books.

“Both our terminals are designed to cater to a much-needed increase in fuel imports, imports which need to reach a level more in line with the increase of demand expressed in the western part of the country,” Kalinda explains. “LP has its own truck fleet and can deliver products to Kinshasa, Matadi, Kisangani, Ilebo and beyond – we are ready to go everywhere as long as the road is accessible, or the water is navigable.”

Kilinda, despite spending more than four decades in the industry, entered the world of petroleum by chance.

He is an economist by education, sending his resume to various companies – one of them was an oil refinery firm called SOCIR, which called him in for an interview and test in Muanda, on the coast of the DRC. “From there I was selected and

started working as an intern, and slowly went up the job ladder all the way to the position of Refinery Director, a position I held for 14 years,” Kilinda recalls.

“I retired from SOCIR after 39 years of wonderful experience in the petroleum industry, but I wasn’t finished.

“Looking forward to giving back

knowledge and knowhow to younger generations, I decided to accept the call from Jean Lengo, who wanted me to be in his new company as an Operations Director. After the former Managing Director left, the Board of Directors of LP assigned me as their replacement, which is where I am today.”

PRODUCTIVE PARTNERSHIPS

How important are partner and supplier relationships to the success of your business?

WILFRID KILINDA: “We work together with many suppliers, without whom our company wouldn’t be as successful as it is today. They help us in the distribution of our services and goods and will continue to be an important part of our business for many more years to come.”

86 | Africa Outlook issue 83

You are striving to advance your business We will help to achieve it

LEREXCOM PETROLEUM and attention to detail, no matter the requirement. LP also boasts the best tanker offloading rate in the entire country, with a capacity to offload 1,000 cubic metres per hour.

Such delivery requires a commitment to invest in state-of-the-art technology.

“LEREXCOM PETROLEUM brought innovation into the industry in our country,” Kilinda adds. “In terms of technology, LP uses a tremendous level of automation which helps us in measurement accuracy, data digitisation and recording, terminal management, equipment control and supervision, process monitoring and security.

“We use also GPS monitoring, which allows us to ensure our trucks are where they should be, and when they

BUILDING A BRIGHT FUTURE Kilinda now leads a young and very dynamic team of employees, people who drive an innovative approach to business and openness to technology adoption which stands LP apart in the field.

Around nine in 10 staff are young, most of them being DRC nationals, with development of local talent a big priority for LEREXCOM PETROLEUM and its management.

In terms of service delivery, the company prides itself on being completely non-discriminant, in that each client is given equal treatment

88 | Africa Outlook issue 83

OIL & GAS

should be there. This further helps us avoid thefts and deters illegal behaviour by employees.”

Indeed, the company’s fleet will only get busier as the country continues to develop its road infrastructure, vital activity which will help to connect the remoter communities of the DRC. In anticipation of this growth in activity, LEREXCOM PETROLEUM is embarking on expansion of its two depots, something which fuels the Managing Director with excitement.

“It is extremely important for us because we believe that the industrial sector is going to develop, and that means the need for our products will grow as well,” Kilinda adds. “We want to be ready when that time comes in order to supply even the small and distant towns in the country.”

Such growth will also enable LP to impart a greater impact on DRC society in the form of corporate social responsibility initiatives.

Although still a young organisation, it has ambitious plans to become a social custodian, Kilinda outlining exciting plans to promote youth sports and provide freshwater to local

“IT IS EXTREMELY IMPORTANT FOR US BECAUSE WE BELIEVE THAT THE INDUSTRIAL SECTOR IS GOING TO DEVELOP, AND THAT MEANS THE NEED FOR OUR PRODUCTS WILL GROW AS WELL”

communities, the company already helping in the fight against COVID-19 by producing and distributing masks to the people of Kinshasa.

And the Managing Director is optimistic about reaching the necessary commercial targets in order to do this. Highlighting a recent major breakthrough, he concludes the conversation in confident mood.

“Our former challenge was to be incorporated in the government’s official price structure, as the price of fuel is regulated by the state,” he says.

“It became apparent that it was the

best route to work normally among other logistics companies in the country without being treated like pariahs.

It was difficult for us to get in the structure, but we recently succeeded thanks to the objective implication of the governing authorities.

“Now, we are projecting to reach a minimum volume of 10,000 metric tonnes of delivery per month. We need oil to develop the country, and this means bringing energy to all corners of the DRC and making life better.

Since energy comes with petroleum, it is our role to insure the supply of product nationwide.”

LEREXCOM PETROLEUM Tel: +243 82 85 00 925 contact@lerexcompetroleum.com www.lerexcompetroleum.com

Africa Outlook issue 83 | 89

XYLEM AFRICA

90 | Africa Outlook issue 83

ENERGY & UTILITIES

LET’S

SOLVE WATER

With a vast portfolio of leading-edge solutions, Xylem’s recently unified Africa division is united in its ambition to safeguard the continent’s most precious (and scarce) resource Writer: Tom Wadlow | Project Manager: Donovan Smith

S

oaring human demand for water has created a crisis.

Despite covering almost 70 percent of the earth, we rely on the 2.5 percent of water which is fresh, and 99 percent of that is not easily accessible, the majority being trapped in glaciers and snowfields.

Indeed, it is fascinating to consider that the water we drink today has likely existed in one form or another for hundreds of millions of years, a resource once consumed by dinosaurs who roamed the earth. Since then the amount of freshwater on our planet has remained fairly constant, recycled through the atmosphere and back onto earth countless times to fuel and feed all forms of life.

Innovation through the ages,

from Archimedes’ Screw and Roman aqueducts to turbines and distillation techniques, have enabled humans to make the most out of water, the leveraging of which has fuelled industrial and agrarian revolutions all over the world.

But there is a problem. The last two centuries have witnessed a population explosion unlike anything seen in civilizational history – in 1800 there were a little under 990 million people on earth, whereas today that figure reads closer to 7.8 billion.

Africa is home to around 1.33 billion people, or 16.7 percent of the global population. Most estimates agree that at current growth rates (around 2.5 percent a year), the continent will have to support double the number of inhabitants by as early as 2050.

Africa Outlook issue 83 | 91

XYLEM AFRICA The picture is therefore very clear.

The need for innovation in order to preserve and sustainably manage freshwater resources has never been more pressing, and organisations such as Xylem are at the forefront of these efforts.

“Technology and innovation enable us to be more productive, perform our duties or tasks more efficiently, and resolve issues quicker,” comments Vinesan Govender, Engineering Manager at Xylem Africa, a division formed in 2019 to unify the US multinational’s operations in the region.

“However, these are just tools – they are only effective based on how we as a society embrace them. Technology is driven by society’s attitude and resolve to solve a crisis.

“Our motto – let’s solve water – is our purpose. It is our mission to unite society and react to a crisis. Our

Xylem pumping solutions Xylem is most noted for its pumping solutions – the portfolio covers a broad range of pump solutions applicable through the entire water cycle, i.e. abstraction, dewatering, slurry, reticulation and transportation.

Xylem recently introduced the world’s first wastewater pumping system with integrated intelligence. The Flygt Concertor™ is capable of sensing the operating conditions of its environment, adapting its performance in real time, whilst providing crucial feedback to the operators. The Flygt Concertor is one of many examples of how Xylem is now introducing smart, interconnected pumping solutions to solving water.

More information at: www.xylem.com/en-uk/solutions

92 | Africa Outlook issue 83

technologies are born out of this resolve, to serve this purpose. Critical to the sustainable management of water is attitude, and technology is a product of attitude.”

Govender joined Xylem last year, the latest chapter in his engineering career which has taken a wholly different direction from when he started out more than two decades ago.

Having spent five years working in missile research and development, he made a conscious decision to put his skills towards a more positive cause, the move into water being confirmed when a former colleague introduced him to innovations in water purification.

After spells at Rand Water, Mott MacDonald PDNA and Veolia Water Technologies, he now helps to steer the development of Xylem’s portfolio.

This portfolio is vast, and includes a tremendous number of pioneering pumping, analysis, treatment, monitoring and control, metrology and non-revenue water (NRW) management solutions.

It covers an enormous base of use cases and industries such as agriculture, commercial buildings, construction, power generation, food and beverage, pharmaceuticals, mining, oil and gas, residential, municipal and transportation, to name but a few.

From individual laymen and NGOs to large corporates and utilities, Xylem engages a huge variety of clients across the globe, its Africa division employing approximately 250 dedicated personnel.

SOLVING WATER Although relatively new, Xylem Africa brings the full suite of products, solutions and expertise that the global group has to offer, a reputation and standing that is critical to making traction in a region which the company is proudly treating as a unified entity.

And the organisation itself is unified by a single statement already referred to by Govender – let’s solve water.

Water-Tight Engineering Water-Tight Engineering offers a range of Sensus Xylem water meters, from domestic to bulk industrial water meters, used by various stakeholders, from local government to private industry.

The materials used for the making of the water meters range from recyclable plastic composite to brass and iron for both hot and cold water applications.

Our esteemed Italian brand of EBARA pumps has decades of triumph in Europe, Asia, Middle East and Africa.

Our pump products are applied in sectors such as mining, manufacturing, construction, municipality service delivery such as sewage and water supply. Water-Tight Engineering Zimbabwe intends to flood its experience in wastewater engineering, ensuring smooth process inflows in industrial, municipalities and domestic waste transport.

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This is the hallmark of Xylem around the world, its solutions designed with that single intent in mind, and employees fully engaged and bought into the mission.

“Our ethos, innovative solutions and intensive corporate social programme are all aligned to solving water,” Govender adds. “My search for a career, where I will be enabled to make a positive difference to the world, is complete.”

Beyond development and deployment of its solutions, the Engineering Manager touches on CSR as a demonstration of how Xylem Africa and its people operate with a real sense of purpose.

He mentions a programme called Watermark, which is dedicated to providing water solutions to impoverished communities and areas stricken by natural disasters, whether it be to remove floodwater, restore a drinking supply or provide water wise awareness.

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Africa Outlook issue 83 | 93

XYLEM AFRICA “Like any business, we are driven to provide our shareholders the best returns possible, but it’s how we do it that is important,” Govender continues.

Xylem NRW solutions SENSUS, a Xylem brand, is a world leader in flow metering solutions in the residential environment, bulk water distribution and industrial environments.

Xylem solutions in Advanced Infrastructure Analytics (AIA) provide to municipalities, utilities and industrial customers the ability to monitor and manage their pipeline infrastructure.

Combining the flow metering solutions with the AIA solutions, Xylem is able to provide a complete NRW solution to the customer that is scalable and can be implemented in a phased approach.

More information at: www.xylem.com/en-uk/solutions

“The responsibility and ethics of the business is best understood through Watermark programmes, which have touched the lives of thousands of people and has had tangible impact on the environment across the four corners of the world.

“In Thailand, Xylem technology was used to pump the water out of the caves where the boys football team was stranded, and closer to home we helped relief efforts in the aftermath of Cyclone Idai when it struck Africa last year.”

Beyond these specific programmes, Xylem Africa also supports NGOs (most notably Engineers Without Borders USA), while employees routinely take part in clearing plastic and other litter out of water, again underlining the unified purpose to solve water.

“Watermark is not just about supporting disaster-struck communities,” Govender adds.

“It is also about the day to day initiatives driven by our employees and corporates around the world. Our employees are proud to dedicate their time to these activities – rather than posting on Facebook about what food they are eating, Xylem staff will share how many plastic packets they have cleared out of their nearby river.

“That, for me, is what our culture is all about. Everyone in the Xylem organisation cares about these initiatives and wants to contribute to society beyond their nine to five jobs.”

UNIFYING THE AGENDA The question of solving water, naturally, encompasses a tremendous array of variables up and down the water value chain, Xylem’s solutions covering almost every conceivable element of the water cycle.

One facet which underlines the sustainability of the whole system is wastage, water which is lost before reaching the end user.

Known in the industry as nonrevenue water, or NRW, it is a topic which is being taken increasingly

“Our strapline – let’s solve water – is our purpose.

It is our mission to unite society and react to a crisis.

Our technologies are born out of this resolve, to serve this purpose” 94 | Africa Outlook issue 83

ENERGY & UTILITIES seriously at a commercial and governmental level, and for good reason. Commonly cited figures reveal that, worldwide, around 45 billion litres of water are lost every day due to pipe leakage, wasteful practices and out of date technology.

“The mindset is shifting,” Govender says. “We are moving away from a purely consumption-based approach

Xylem treatment solutions Xylem solutions expand extensively into the treatment of water, for consumption, reuse and safe discharge back into the environment.

Xylem treatment technologies focus on non-chemical based solutions such as UV disinfection and ozone oxidation. This, combined with its solutions in aeration, mixing, filtration and clarification, enable Xylem to provide complete treatment solutions for potable water production, wastewater treatment and water reuse.

More information at: www.xylem.com/en-uk/solutions

to a preservation and sustainability mentality. Leaders in Africa are realising that driving economic improvement in their countries requires a different approach to managing water.”

Xylem has developed numerous solutions to address the issue, and ongoing pilots in South Africa are continuing to demonstrate the value of effective NRW management, something which Govender believes will help turn the tide regarding investment into such technologies.

Once more, the emphasis on NRW feeds into the wider let’s solve water mission statement.

And it is this unwavering purpose which will continue to form the focus of Xylem’s work moving forwards.

The company has a deep pipeline of completed and ongoing projects in Africa, be it collaborations with major water utilities or private enterprises, work which demonstrates the value of its solutions to solving water management issues across the region.

“As Africa urbanises, we see a large opportunity for our solutions that support smart cities, both in pumping and management,” Govender says.

“In the same vein, Africa’s demand to bring water to its furthest corners provides growth opportunities for us

in our water transport, treatment and management solutions.

“This includes our investment into new solutions targeted towards economically challenged societies.

This is of particular interest to me, as water challenges are faced by all on the economic spectrum, and we are catering to that entire spectrum.

“We have a diverse portfolio, but it is aligned to one goal. That is what defines Xylem, and we will not navigate away from that course.”

XYLEM AFRICA www.xyleminc.com

Africa Outlook issue 83 | 95

AFRICA LOGISTICS PROPERTIES

The Dawn of

NEW AGE LOGISTICS

Africa Logistics Properties is at the forefront of an infrastructure revolution in Nairobi, its state-of-the-art warehouses to the north of the city already winning over local, regional and global tenants, with another hub on the way Writer: Tom Wadlow | Project Manager: Lewis Bush

96 | Africa Outlook issue 83

SUPPLY CHAIN

N

airobi – described as East Africa’s most cosmopolitan city and the beating industrial heart of Kenya.

Nestled in the central highlands around 480 kilometres from the port city of Mombasa, Nairobi is responsible for more than a fifth of national GDP and home to around 6.5 million people, or one in eight Kenyans.

Indeed, the city’s rise has been a remarkable one given its relatively young age. Established in the late 1890s as a colonial railway settlement, the ‘green city in the sun’ became Kenya’s capital in 1907 and enjoyed a period of turbocharged growth post-independence.

But there was a problem. Nairobi, when designed by British colonialists, was only ever supposed to house around 500,000 people, a fraction of the several million that reside here today.

“The infrastructure cannot accommodate the needs of the population and various real estate sub-sectors that are now in the city,” explains Dean Shillaw, Chief Commercial Officer at Africa Logistics Properties (ALP).

“Even prior to independence in 1963, Nairobi was growing at such a rapid rate that the infrastructure was left behind. Instead, things were being retrofitted and quick fixes were being applied – it’s like building a LEGO house with the wrong pieces.”

However, the picture is changing once again. Governing authorities have realised the boom in industrial activity must be supported by enormous infrastructure upgrades, and several game-changing developments are beginning to bear fruit.

These include the A2 highway which runs to Ethiopia, the A104 which heads northwest to Uganda, and the Chinese One Belt One Road-inspired LASPPET corridor, which is helping Nairobi to position itself as a regional transit hub.

Further still, the Standard Gauge Railway to Mombasa and special economic zones (SEZ) are creating Africa Outlook issue 83 | 97

AFRICA LOGISTICS PROPERTIES business-friendly environments which are helping to lure more investment into the area. SEZ economic incentives include reduced corporation tax, no VAT, and preferential import and export duties, to name but a few.

Another key link in the infrastructure chain is modern, fit-for-purpose warehousing, the development of which is ALP’s raison d’être.

RESPONDING TO COVID-19 Disruption of consumer supply chains caused by the coronavirus pandemic is expected to result in a new wave of demand for warehousing solutions.

With consumers turning to online forms of retail amid lockdown measures, companies are seeking additional storage space to help deal with this shift away from in-store purchasing.

Pharmaceutical companies are also seeking to boost local manufacturing and build up emergency stockpiles.

“Ecommerce turnover is prediected to jump by a factor of six and retailers are pushing two to three times their usual volumes as a result,” comments Shillaw.

“In some cases, our third party logistics clientele are holding six months of stock instead of three, and cold storage needs in Nairobi are expected to ramp up by 100,000 square metres inside three years.

“This surge of Nairobi inbound containers will spike the need for large volumes warehousing needs, and the long-term influence on the local manufacturing sector is very positive, as the local market will become less reliant on the East.”

98 | Africa Outlook issue 83

“Nairobi is crying out for quality warehousing,” Shillaw says. “Today there are 22.2 million square metres of industrial space under roof in Nairobi, but it is of substandard quality, badly designed and generally very poorly connected to major transport links and utilities.

“The recipe is ideal for a company like ALP to build warehouses, and that is what I love doing. We are, ultimately, helping to reduce the cost of day to day living and consumables by optimising one key link in the overall supply chain.”

Supported by international shareholders (such as the World Bank and Common Wealth Development Corporation) and adopting global best practices in warehousing design specifications, ALP is a specialist integrated property investment company that develops, acquires and owns class-A industrial and logistics properties in principal cities across Africa.

In Nairobi, the company has developed the first international class-A logistics warehousing park (ALP North) measuring 50,000 square metres within a SEZ and commenced construction of its second park at ALP West, just northwest of the city along the A104.

For Shillaw, the opportunity to get hands-on in the building of massive-scale infrastructure was too good an opportunity to pass up, the CCO joining in late 2019. He is a certified financial planner by education, but his passion for industry is what has directed his working career to this point in time.

“I used to go to the ports at Cape Town and Durban and just appreciate how bulk infrastructure worked,” Shillaw recalls.

“My old man showed me a MacSteel facility in Johannesburg when I was a teenager and I instantly fell in love – it was a steel fabricator site that was 110,000 square metres in size with 15 to 20 metres height clearance, and about 30 gantry cranes moving steel

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within the factory. I was in awe of it and my passion for industrial buildings just snowballed from there.”

Shillaw commenced his career at the internationally recognised real estate consultancy Knight Frank before moving to JT Ross Developments, a 120-year-old family run development company domiciled in Durban, South Africa, and a platform for his next move which looked like being Londonbound. But the allure of working for Rendeavour on the 5,000-acre Tatu City development near Nairobi ended any plan to move continents, the CCO finally arriving at ALP after a threemonth sabbatical exploring some of the largest infrastructure in Europe.

A NEW ERA OF WAREHOUSING Shillaw’s job is to drive commercial growth in Sub-Saharan Africa with a core focus on developing ALP North and ALP West.

The former is a flagbearer for warehousing modernity in the region and

SUPPLY CHAIN

has already achieved several major milestones, the 50,000 square metres of space now 75 percent occupied.

It lies 25 kilometres north of Nairobi’s CBD with close access to both the Thika superhighway (A2) and Eastern Bypass and has several access points, helping to mitigate traffic congestion by not relying on a single road in and out of the facility.

Inside, ALP North is fitted out to the highest-grade specifications. Its FM2 standard, anti-dust coated floor can handle loads up to five tonnes per square metre with a 12-metre operating height, its pallet density up to 140 to 200 percent greater than a conventional counterpart.

Warehouse access is also second to none, with automated sectional doors and dock levellers every 1,000 square metres, and 40-metre deep truck reticulation spaces.

“ALP North was recognised in 2018 as the best industrial development in Africa, and it was the first

African building to achieve an EDGE Certification, which is a huge deal,” Shillaw adds.

“But what does being a green building actually mean? In terms of power we are saving 30 percent through solar and are generating 40 percent less wastewater. Water is the most valuable commodity in Africa so the fact we are saving and harvesting water is a big factor which defines true sustainability.”

On top of this, ALP North contains 200 LUX LED lighting, wall and roof insulation for stable indoor temperatures, and air handling units to ensure circulation is constant. The site also adheres to the highest fire safety and security standards.

The response to the development has been extremely encouraging, its success reflected by the signing of East Africa’s largest and second largest industrial lease agreements with Freight Forwarders Solutions and Twiga Foods respectively.

And Shillaw is determined to emulate this at ALP West, phase one of which, known as The Courtyard, being well on the way to completion by October this year.

“You could even argue that we overdid it on the specs with ALP North, because the barriers to entry are quite high,” the CCO adds. “It is not a cheap warehousing option, but the volumetric capability as a function of rent per square metre is unrivalled in Nairobi.

“With ALP West we want to appeal to smaller enterprises as well, so have built a mini industrial park to lower the barriers to entry without sacrificing on the A-grade quality fundamentals.

“This is what The Courtyard is all about, and will allow tenants to grow in a controlled, incubated way. It will serve as the feeder into the bulk of our next developments at ALP West, which has seven phases of construction in total and will contribute 100,000 square metres of space.”

While not as specialised as ALP Africa Outlook issue 83 | 99

AFRICA LOGISTICS PROPERTIES

North, Shillaw explains the mass market appeal of the new site, which is located two minutes from the Nairobi-Nakuru highway (A104) with several other link roads in construction around it.

Bulk earthworks for the second phase, which will deliver another 12,000 square metres, is about to commence, Shillaw outlining plans to deliver a phase approximately every year which will see completion of ALP West well before 2030.

A PARTNER FOR THE FUTURE Beyond the bricks and mortar, another key differentiator for ALP is its partnership-based, personal approach to doing business.

The company is here for the long haul, able to stand as a long-term capital partner and develop genuine business to business relationships with its tenants, who can focus on their core operations in the knowledge that their assets are in the best possible warehouses.

“We have a small unit of highly skilled and hugely experienced individuals that I believe make up the best team of warehousing professionals in Sub-Saharan Africa,” 100 | Africa Outlook issue 83

FLEXIBLE WAREHOUSING There are a number of ways a client can engage with ALP, from speculative warehouse development for the occupier lease market and build-to-suit, where a warehouse facility is designed and constructed specifically for a dedicated user.

Such BTS partnerships involve very close collaboration from the outset, the client able to shape their space according to their own needs, one of several advantages which also include: • choice of convenient location and investment form • not deploying the intensive capital to develop a facility – this capital can rather be invested into core business operations at a higher return/yield when compared with the real estate sector • cooperation with a dedicated BTS team • savings in terms of investment and operating costs • consulting on the scope of optimising logistic processes In terms of financing, a company can choose, among other options, a sale and leaseback scheme whereby they sell their industrial property to Africa Logistics Properties for cash and simultaneously sign a long-term lease.

This provides the benefit of immediate access to capital and continued operational control of the warehousing facilities.

ALP clients can also benefit from numerous property management services, including technical maintenance, lease contract provision, financial settlements, 24-hour security and warehouse site branding.

SUPPLY CHAIN these sites,” he continues. “We have prospective tenants coming to us and saying where they will be setting up, and we can then approach them with a turnkey solution based on our buildto-suit (BTS) structure.

“This is allowing us to act as an incubator across Sub-Saharan Africa.

We are speaking to multinational third-party logistics, cold-storage, pharmaceutical, retail and ecommerce providers who are asking whether we can build facilities for them in cities including Kampala and Addis Ababa, reversing that traditional mindset which has led to 85 percent of warehousing space in Kenya being owner occupied. Our partnerships enable a flexible approach to ownership, a structure which can change as time progresses.”

The possibilities, it seems, are almost endless. With the shortage of modern warehousing very much a regionwide issue, not just unique to Nairobi, ALP has proven its concept and is ready to act as an infrastructure catalyst on a larger scale.

It leaves Shillaw supremely optimistic about the future. Looking ahead, he concludes: “We know our solution works, and are managing to succeed and show it can be done in Africa.

“There are major benefits to be had from revolutionising warehousing in the region, which is a key component of the wider infrastructure renaissance that is underway.

“The more people and organisations we can convince to adopt our solutions, the wider the impact ALP will have and the greater the benefits which will ultimately be realised.”

Shillaw adds. “We operate like a family with an open-door policy and are good listeners, which is critical – there is no God-given hierarchy but at the same time everyone knows their roles, and we deliver on-time and on-budget.”

The CCO also reveals plans to expand the close-knit operation into new markets, citing the likes of Mozambique, Uganda and Ethiopia as potential new ventures for ALP. “But the beauty of this is that it is not just ALP going out there and finding

AFRICA LOGISTICS PROPERTIES Tel: +254 (0)714954103 info@africawarehouses.com www.africawarehouses.com

Africa Outlook issue 83 | 101

MAINSTREET MICROFINANCE BANK

DRIVING FINANCIAL INCLUSION IN NIGERIA Adegoke Adegbami, CEO of Mainstreet Microfinance Bank, discusses how digitisation and a customer-centric attitude are critical to extending financial access to all Writer: Dani Redd | Project Manager: Sam Love

Adegoke Adegbami, CEO

102 | Africa Outlook issue 83

I

n Nigeria, financial inclusion has always been a challenge.

An estimated 60 million Nigerians (out of a 200 million population) do not have bank accounts. There are several main reasons for this. First, many Nigerians work in private and informal sector jobs and receive wages in cash. What’s more, many live in areas where financial services such as ATMs and banks aren’t provided, so have historically been denied the opportunity to open accounts. According to The Africa Report, the sector’s strict mobile money regulations also initially hindered growth, as until 2018 only licensed banks (or fintech companies in partnership with them) were permitted to operate forms of mobile money services.

However, Mainstreet Microfinance Bank has a goal: to open up access to financial services, thereby helping develop Nigerian communities and businesses.

“Increasing access to financial services is our mission,” proclaims Adegoke Adegbami, the bank’s CEO. “It is financial inclusion that drives and guarantees economic inclusion. It is financial inclusion that drives social and political inclusion.

“And these are the factors that drive equality in our world. These are the

things that make the world a better place to live. Access to finance drives access to other good things in life like quality health services, political participation and human dignity.”

Adegbami has been interested in microfinance since leaving school in 1993. A decade later, he trained as a chartered accountant. In 2005, when the Nigerian government introduced a policy directing community banks to transform into microfinance banks, Adegbami’s relevant experience allowed him to act as a consultant to help facilitate the process.

“One of the microfinance banks convinced me to take up a job with them. Thereafter in 2008, I was employed as part of the team to set up a microfinance bank for the then Afribank Group,” he explains.

“Over the last 11 years, Afribank Microfinance has grown and seen many transformations, including its change of name to Mainstreet Microfinance.

I worked in different roles within the bank before becoming the CEO in 2015.

My interest and passion for the sector has remained very strong over all of these years.”

Mainstreet Microfinance Bank is licensed by the Central Bank of Nigeria (CBN) to provide services including micro savings, micro lending, micro insurance, training and financial advice

FINANCE

to individuals and SMEs. It operates within and beyond Lagos and currently has around 100,000 customers, a loan portfolio of $12 million and assets totalling approximately $15 million. It is still going strong after a decade in this challenging business environment – so, what explains its success?

PUTTING PEOPLE FIRST “Among other things, the quality of people we have stands us out. By people I mean the shareholders, directors and employees,” Adegbami explains.

“We have people who are very committed to the mission of the bank, and we have also invested tremendously in training and development.

“Our strength lies in the quality of our people. It also lies in the level of commitment and loyalty they demonstrate

in playing their roles and discharging their duties. Right from the shareholders, board members, management and staff, we have very fantastic people.

“As an organisation, we are very committed to training and overall development. On our board, there is nobody who has not gone through specialised training on microfinance, financial inclusion, risk management and corporate governance. All of our directors have gone through foreign training.

“The fact that we were part of a commercial bank group for about eight years has also helped us. The training we received from day one was beyond what was intended only for microfinance services – we also received training concerning the banking and financial services industry.”

The CEO – an employee who rose through the ranks – is testament to the efficacy of this training programme. So, too, is the bank’s ability to retain its staff in an industry where there is normally a rapid turnover.

“We had our 10-year anniversary last year and we have many staff who received long service awards,” he says.

“We have succeeded in keeping our staff because we know they are the most valuable assets that we have.”

The second key to the bank’s success is its customer-centred attitude.

“We put our customers first in all that we do,” Adegbami continues. “They are very loyal to us. Many of them have grown with us over the years. There is a story of a guy we loaned around $1,500 about seven years ago. Today, that business now accesses up to $150,000 Africa Outlook issue 83 | 103

MAINSTREET MICROFINANCE BANK from us at a time. We can only say we are grateful to all the people that have been parts of our success story.”

Finally, Adegbami cites the bank’s partners as integral to its accomplishments.

“We also have a lot of quality partners,” he comments. “Some of them are international while others are Nigerian based. Some of them provide us technical services while others provide funding for us. They have been the reasons for our survival and growth over the years.”

DIGITAL PORTFOLIO The following e-products are available to Mainstreet Microfinance Bank customers: INSTANT FUNDS TRANSFER – transfer funds to any commercial bank in Nigeria within two to three hours. Enables account holder to pay school fees, send money to family members and more MOBILE BANKING – download MMB’s mobile app to pay bills, check your balance and transfer money without visiting a bank USSD BANKING – use the bank’s USSD code for balance enquiries, one-click Airtime top-up and rapid transfers 24/7 INTERNET BANKING – access transactional activities (viewing account statements, making transfers) and nontransactional activities (stopping payments, updating contact information)

104 | Africa Outlook issue 83

This network of individuals and organisations assist in a wide variety of ways, from funding in the form of debts and deposits, to provision of technology and technical training.

Adegbami also pays tribute to a number of legal, management and financial advisors, as well as governmental agencies and high net worth individuals whose support has been invaluable in getting the company to where it stands today.

RIDING THE DIGITAL REVOLUTION The CEO is also aware that digitisation of services is the key to driving growth within the sector.

“First, you have the payment solutions,” he says. “They enable people to make payments, contributions, collections, purchases, subscriptions and so on. There are loan technologies like loan origination, scoring, enhancement or top-ups.

There are technologies used to drive various internal processes like accounting, treasury, internal control, risk management and HR. “Recently, technologies enabling you to conduct training and meetings have been developed. There are those that help you keep your documents and archive them electronically.

And, of course, our traditional core banking and accounting applications now come with different capacities.

All these are driven by artificial intelligence and machine learning. The internet of things and blockchain are also new technologies making inroads into our industry.”

To stay ahead of the curve, it is important for Mainstreet Microfinance Bank to keep abreast of the latest technological advances.

For example, it is 40 percent into a two-year strategy focussed on how technology can be used in a customercentric manner. This looks at various touch points and interactions, as well as ways to enhance the company’s own internal operations.

Carnation Registrars Ltd Carnation Registrars Limited (formerly Afribank Registrars Limited/Mainstreet Bank Registrars Limited) was incorporated in December 2004 to take over the functions of the Registrars Department of Afribank Nigeria Plc. which was established in 1993.

Our core services are the CREATION and MAINTENANCE of stockholders’ register of members.

Our clients enjoy the best software interactions with our multi-user and multi-register online system. It is composed of high-end information technology infrastructures with the capacity to accommodate more than 2,000,000 shareholders.

The company has the best team to provide excellent services to the satisfaction of our clients.

www.carnationregistrars.com

“We have also launched our mobile application, which enables our customers to perform all their standard banking transactions on their mobile device,” Adegbami adds, detailing some key technological milestones recently achieved.

“We launched our internet banking in 2019, targeted largely at our corporate customers. We also launched USSD banking, where customers can now make loan repayments and deposits using our USSD code. They can also collect payment for their sales from their own customers and, very soon, customers will be able to apply for loan or open new accounts with us without visit our office premises.

“We also deployed debit cards to our customers. During this lockdown period, our customers can access their money at any ATM terminal. The system enables us to transact with any other bank in Nigeria without going there physically. We now have technology that enables us carry out customer

FINANCE

Creation and Maintenance of Register We are Carnation Registrars a symbol of efficient quality and prompt on-line service provider with modern day State of the Art Information Technology System. We are constantly adding value to our client companies and numerous shareholders nationwide.

Our services are essentially the CREATION and MAINTENANCE of stockholder’s register of members.

We offer services in the areas of Public Issues, Bonus Issues, Rights Issues, Debentures, Bond Issues, Take-Over, Mergers, etc. Our responsibilities include among others.

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references without writing to the other bank. We can also conduct account statement verification without writing to or visiting the third-party bank.

“There are many other things we are currently working on. At the end of the execution of the current transformation strategy, 85 percent of our business will be digital.”

Adegbami believes that establishing numerous physical branches is no longer a sustainable business model, and aims to reach new markets via digital services instead, a nationwide tech-driven network which will be supported by strategically located representative offices.

OVERCOMING CHALLENGING TIMES AHEAD Despite these technological advances, Adegbami admits that there are challenging times ahead for the industry, in large part due to the economic instability within Nigeria, which makes it a high-risk business environment.

www.carnationregistrars.com

“Long term planning is very difficult,” he admits. “The Nigerian economy just exited a recession about two years ago.

Now there is COVID- 19 and the impact on the African economy is predicted to be profound. Government support for our business and the customers we service is very low. Microfinance businesses will be more stable and effective if there is a guaranteed intervention fund from the government.”

However, this doesn’t stop him from outlining ambitious plans for growth.

“Growth is paramount. If you stop growing you start dying,” he says.

“Today we have a total asset of over $15 million and portfolio balance of about

$12 million. By 2023 we want to have a total asset of about $60 million and portfolio of $45 million.

“We will deploy technology to drive the business in an efficient and customer centric manner. We also plan to diversify into other accessory or related businesses – these are businesses we believe are important to facilitate our core business of microfinance and financial inclusion.”

With its customer centric attitude, plans for technological expansion and long-serving, experienced staff, Mainstreet Microfinance Bank will continue to serve as a loyal financial partner for many more years to come.

MAINSTREET MICROFINANCE BANK Tel: +234 (0) 7083830241 www.mainstreetmfb.com

Africa Outlook issue 83 | 105

CENTRE FOR INFECTIOUS DISEASE RESEARCH IN ZAMBIA (CIDRZ)

106 | Africa Outlook issue 83

HEALTHCARE

Making Healthcare Accessible The Centre for Infectious Disease Research in Zambia continues to work towards its mission of making quality healthcare a reality for a greater number of Zambians Writer: Tom Wadlow | Project Manager: Callam Waller

T

o say that public health is in the spotlight right now would be something of an understatement.

Not only has the COVID-19 pandemic brought into focus the importance of basic hygiene standards and threat of transmissible viruses, it has underlined just how critical a population’s good health is to the social and economic prospects of a nation.

Economies have ground to a halt as labour forces are confined to their homes or restrictions in how they would normally work – indeed, the very meaning of the term normal is changing before us.

In Africa, while the impact of the virus has not reached levels of the likes seen in Europe and the United States, the coronavirus outbreak has still led to a number of deaths and restrictions on economic and social activity, once more highlighting the importance of healthy societies and functioning health systems.

Improving access to such medical provision is thus paramount, and the Centre for Infectious Disease Research

in Zambia (CIDRZ) has made this its mission in its home country.

Founded in 2001, it is a non-governmental organisation focussing on three pillars – direct service delivery, research and training – by spearheading innovative capacity development, exceptional implementation of science and research, and impactful and sustainable public health programmes.

Its research into major health threats such as HIV continues to be lifechanging for many Zambians, work which is underpinned by core values of accountability, equity, honesty, productivity, respect and transparency in everything it does.

“We are committed to answering research questions relevant to improving health in Zambia, including the threat posed by COVID-19,” comments CEO Dr Izukanji Sikazwe.

“Our research aims to identify locally relevant, culturally acceptable, resource-appropriate, evidence-based interventions that will influence policy and thus raise healthcare service delivery in the public health sector.

“Research has ranged from small Africa Outlook issue 83 | 107

CENTRE FOR INFECTIOUS DISEASE RESEARCH IN ZAMBIA (CIDRZ)

pharmacokinetic and behavioural studies to individual and cluster-randomised trials to large multi-country programme evaluations. We use the latest methodologies to generate evidence and advance knowledge.

“Our clinical trials contribute to the development of new interventions, our implementation science provides solutions to system challenges, our qualitative research broadens understanding, and our laboratory and immunology science improves impact.”

Such activities are funded through competitive grants, a process which Dr Sikazwe admits presents challenges as well as opportunities.

Projects are financed individually, which dictates CIDRZ’s work, but the organisation has mastered the process due to its experience and footprint in Zambia and close relationship with

the Ministry of Health and other key partners.

This is shown by the fact it submits 50 to 60 applications a year and commands a 45 percent acceptance rate, well above the 10-15 percent industry norm, a figure which should only be boosted by the establishment of a new business development unit to support competitive application submissions.

PIONEERING PROGRESSION Once a project is secured and requires laboratory testing, the investigators rely on exceptional team working in the state-of-the-art CIDRZ Central Laboratory (CCL).

Initially set up to support clinical trials focussed on prevention of mother to child transmission of HIV, its remit has expanded exponentially since.

The CCL is able to carry out laboratory

WHAT HAS INSPIRED YOUR MEDICAL CAREER TO THIS POINT? DR IZUKANJI SIKAZWE: “I enjoyed learning science subjects in high school, so my passion and career direction stemmed from there. My mother was a matron nurse here in Zambia, so I was familiar with hospital surroundings.

“It was a very distressing time rotating through the medical wards as a student in the late 1990s and early 2000s at the height of the HIV crisis in Zambia. There was no treatment available and I saw the impact of this on friends and relatives, so from that point onwards I was determined to do something in the field of HIV and infectious diseases.

“My post-graduate training was interrupted by senior doctor strikes, so I went to Maryland in the US to take my exams, coming back to Zambia at least once a year to touch base with colleagues at the main teaching hospital. Around 2006 when I returned, I started to help set up rural HIV clinics and training programmes, a project which was being funded by the US government.

“After this I completed a two-year fellowship in infectious diseases and became a technical advisor to the Zambian government on its HIV programme, and ever since have been more involved on the public health side, including my position now at CIDRZ.”

108 | Africa Outlook issue 83

testing that includes microbiology, mycobacteriology, virology, haematology, flow cytometry, immune cell processing, immunochemistry, and clinical chemistry.

This is possible thanks to sustained investments in human resources, leading-edge high throughput equipment and an information management system worth more than $1 million.

“The laboratory continues to support large numbers of clinical trials and government programmes,” Dr Sikazwe adds. “We have also invested in a modern specimen repository system, the largest in country that is able to store over a million specimens using high tech equipment to map, track specimens, and monitor storage temperature.

“All areas of our laboratory are supported by modern safety equipment, including a biosafety level III laboratory for processing and testing highly infectious materials.

“As well as this, our collaboration with different working groups, consisting of research, programmes and clinical care, has led to acknowledgement and recognition at both national and international levels.

“With these positive strides and continuous improvements in quality management systems of laboratory services, CCL received its ISO 15189:2012 accreditation in July 2018 and became the first medical laboratory in Zambia to be accredited

by Southern Africa Development Community Accreditation Services (SADCAS).”

These are important recognitions and demonstrate CIDRZ’s adherence to globally sought-after standards.

In terms of specific projects, the organisation’s flagship grant continues to be centred around the fight against HIV, the PEPFAR/CDC award being first secured in 2004. The abbreviation stands for the President’s Emergency Plan For Aids Relief/Centers for Disease Control and Prevention, a global HIV/Aids programme

HEALTHCARE

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sponsored by the government of the United States.

Its objective? To bring an end to the HIV epidemic and attain the universal 95/95/95 target.

Zambia is close to reaching this objective, which requires that 95 percent of the population know their HIV status, and of those that are positive, 95 percent of them will be on treatment, and of those on treatment, 95 percent will be virologically suppressed.

CIDRZ has been working actively across four provinces – Eastern, Western, Lusaka and Southern – to make this a reality.

Dr Sikazwe details: “During the last year we supported these efforts by providing health services and deploying frontline health workers.

We also provided technical assistance to provincial and district teams to improve delivery of services in 296 health facilities in Lusaka and Western provinces.

HIV test “We identified 45,150 HIV positive people out of 861,457 tests in Lusaka province, and 9,397 out of the 313,233 tested in Western province. Working with our network of community lay providers and volunteers, we improved HIV case finding through contact tracing and social networks.”

Further, CIDRZ facilitated supply and distribution of HIV self-testing kits, where citizens test themselves for HIV through a saliva sample.

Last year it distributed 41,053 such kits in Lusaka and Western provinces and identified 1,025 clients as new positives. This helped prompt the provision of anti-retro viral therapy to

209,983 people, of which 8,642 were children below 15 years old.

Dr Sikazwe goes on to introduce the concept of the last mile, whereby CIDRZ is working to develop more patient-oriented ways of treating infectious diseases which can and should be eliminated in their entirety, HIV being one of them, along with the likes of malaria and polio.

“The last mile initiative involves different stakeholders and philanthropists coming together to help eradicate these diseases in the remaining populations that continue to suffer high rates of infection,” she explains.

“My area of work focusses on eliminating the HIV epidemic and getting to a stage where the number of new infections falls below a certain level.

This is similar to how we are judging the COVID-19 spread and the need for ‘R0’, or the reproductive value that tracks how many people on average will be infected for every person who has the disease, to be below one.

Africa Outlook issue 83 | 109

CENTRE FOR INFECTIOUS DISEASE RESEARCH IN ZAMBIA (CIDRZ)

“The goalposts are forever moving with HIV, and my last mile is trying to assess the gap between diagnosis and access to treatment. And the treatment must be quality treatment, and centred around what is best for the patient – we are finding there is patient fatigue with the volume of visits and treatments, so we are working on how to keep them motivated and engaged, all the while keeping the disease suppressed.”

FIT FOR THE FUTURE As well as project execution such as that described by Dr Sikazwe, training and development are an equally essential part of CIDRZ’s bid to fulfil its

mission of improving access to healthcare in Zambia.

It has a dedicated training unit which implements various programmes to help educate the wider population, while a series of fellowship schemes help it to utilise the talent of medical students.

For example, the CIDRZHealthCorps Fellowship is a prestigious and a highly competitive year-long programme which enrols candidates from various fields of study from local or international universities. Successful candidates must carry MSc or MPH qualifications and are matched to specific projects at CIDRZ which helps them identify their career interests.

“A cherished goal of the CIDRZHealthCorps fellowship is to expose graduates and soon to graduate fellows to real life research and implementation science, and offer hands on experience which allows them to sharpen their career trajectory,” Dr Sikazwe says.

“The fellowship period is also dedicated to help fellows nurture their career development ideas, with special attention given to opportunities for PhD training as a possible next step.”

Nine fellows are currently on track in this year’s cycle, the tenth year it has been in operation, with each fellow receiving an all-inclusive grant of $2,000 per month.

A major focus for CIDRZ and Dr Sikazwe is to develop patient-centred solutions and treatments to diseases. HIV is a particular focus, with patient fatigued identified as a problem that needs to be overcome 110 | Africa Outlook issue 83

HEALTHCARE

“WE ARE COMMITTED TO ANSWER­ING RESEARCH QUESTIONS RELEVANT TO IMPROVING HEALTH IN ZAMBIA, INCLUD­ING THE THREAT POSED BY COVID-19” The next step, as identified by the CEO, is the CIDRZ PhD Fellowship.

Here, the purpose is to create a mechanism is to identify and maintain exceptional fellows who embark on PhD academic training, and ensure their research is linked to ongoing activities at CIDRZ, with renumeration being calculated on a project by project basis.

Candidates can engage in a number of ways through the University of Zambia and international universities, as well as distance learning such as the UK’s Open University. Currently, CIDRZ has 12 PhD candidates progressing well in their research, with a healthy number going through the application process.

The organisation also offers MSc training through distance learning or enrolment with the University of Zambia, with seven fellows currently supported after four completed the programme last year. Further still, internships are another way in which CIDRZ engages students, these programmes lasting up to six months and seeing volunteer interns paired with

mentors to gain hands-on experience in the field.

These fellowship and training endeavours highlight the importance of collaboration with external parties to CIDRZ, be it universities, governmental bodies, or other valued partners.

Indeed, Dr Sikazwe is quick to highlight the crucial part that this partnership network plays in the ongoing success of the group.

“Our partners are critical to our success and collaborations enable us to bring in fresh perspectives and strategies for implementing and improving health outcomes in Zambia,” she adds.

“We believe in having open strategic communication with partners, both international and locally, to look at how we best complement each other to meet our respective goals. There has to be a shared vision and a passion for the work at hand. We strongly believe in partnerships or collaborations that have a vested interest in growing the human resource capability of CIDRZ staff or Zambians, while pursuing the goal of any funding opportunity.

“Ultimately, the collaboration should result in improvement in the delivery of health services or generation of information that adds to the body of knowledge. Lastly, our partnerships should be complimentary and enable us to be most competitive with the various funders.”

Such collaborations will be of vital importance as CIDRZ enters the next chapter of its development.

The immediate priority for Dr Sikazwe is to leverage the organisation’s resources and knowledge to help tackle the COVID-19 pandemic, its testing capability likely to be crucial in this ongoing national effort.

Beyond this, the CEO looks forward to making progress on a number of other projects, as well as continuing the remarkable success rate when it comes to securing new grants.

However, she is the first to admit that the way CIDRZ does business will be different, concluding the conversation by outlining some of the organisation’s plans for the near-term future.

“We are having to put some trials on hold and rethink how we continue to carry out research in this environment,” she says. “Our research agenda will still evolve alongside the government’s wider health agenda, but how we do this will change.

“Already we are changing how we interact with clients and partners, using mobile and remote communications technology, and enrolling patients into trials virtually. There are challenges, but also opportunities, and I look forward to seeing our work unfold.”

CENTRE FOR INFECTIOUS DISEASE RESEARCH IN ZAMBIA (CIDRZ) Tel: +260 211 242 257/58/59 info@cidrz.org www.cidrz.org

Africa Outlook issue 83 | 111

EVENTS

Project Africa – Ethiopia July 2-4 | Addis Ababa, Ethiopia | www.projectafrica-ethiopia.com

Seizing Ethiopia’s construction opportunities ET H IO PIA, EAST Africa’s most populous country and one of the fastest-growing economies in the world, is showing increased business potential as it seeks to become a strong player in Africa’s construction market.

Driven by the government’s investment in infrastructure, as well as steady development in the agricultural and service sectors, Ethiopia’s GDP is expected to witness a growth rate of about 7.8 to 10 percent by 2023.

On the other hand, the government’s successful implementation of various policies has contributed to a noticeable increase in foreign direct investment which amounted to a total of $11.3 billion in the past three years.

The construction sector continues to be a pillar of the Ethiopian economy 112 | Africa Outlook issue 83

fueled by an increase in infrastructure development. In fact, the construction industry in Ethiopia has recorded an 11.6 percent growth rate.

With numerous projects in the pipeline such as railway lines, highways, power plants, and industrial parks, Ethiopia’s construction and infrastructure sector offers immense trade and investment opportunities for international industry specialists as the country seeks to benefit from the transfer of valuable knowhow and technology that it needs to further develop.

In response to apparent market demand and following its deep-rooted expertise in organising construction exhibitions across the Middle East, IFP Group (International Fairs and Promotions) is expanding its “Project

Series” portfolio into Africa with the launch of Project Africa – Ethiopia.

Project Africa – Ethiopia, the International Trade Exhibition for Construction Materials and Equipment for Africa, will be held from July 2-4 at the Millennium Hall in Addis Ababa, Ethiopia.

The exhibition provides a crucial international platform to access emerging trade and investment opportunities in Ethiopia’s robust construction market, explore upcoming construction and infrastructure projects, meet key decision-makers from the public and private sectors, and showcase products, equipment, and services to thousands of local and regional buyers.

SEIZE

ETHIOPIA'S

CONSTRUCTION

O P P O RT UN I T I E S THE INTERNATIONAL TRADE EXHIBITION FOR CONSTRUCTION MATERIALS AND EQUIPMENT FOR ETHIOPIA

2 - 4 JULY 2020

Millennium Hall, Addis Ababa Ethiopia info@projectafrica-ethiopia.com +251 9 11113209 projectafrica-ethiopia.com

EVENTS

Data and Analytics Virtual Summit – West Africa July 15-16 | Online | www.das.martechvibe.com

A virtual gathering of data experts DATA ANALY TICS has become central to how modern organisations and governments take decisions and execute plans. Online retailers, companies, governments and tech giants are investing millions in ramping up their ability to collect and analyse data.

West Africa too, is fast adopting big data technologies and transforming business through digitalisation. SubSaharan Africa region is currently 114 | Africa Outlook issue 83

responsible for an astonishing 45.6 percent of mobile money activity in the world.

MarTech Vibe Data & Analytics Virtual Summit - West Africa will cover crucial aspects of how big data and analytics can help government services, ministries, and large organisations in West Africa harness their data and identify new opportunities.

Sanjay Swamy, Co-Founder and Director of Strategic Partnerships, MarTech Vibe, says: “Businesses in the Sub Saharan region are rapidly adopting data and analytics tools and see it as a source of competitive advantage. According to a report published by KPMG, organisations in

Nigeria alone are looking to spend up to N50 million annually to build their data and analytics capabilities.

“We have carefully crafted the programme, keeping in mind the key challenges the region faces right from identifying the right solutions providers to building the right talent capabilities. Now is the right time for businesses to focus on data and analytics or they get left behind.”

The two-day virtual summit opens with experts from regional companies including the National Information Development Agency, Nigeria; GTBank PLC, Chevron, Wakanow, Dangote Group, First City Monument Bank, Axa Mansard, Eat ‘n’ Go and many more.

Can Data Drive Real Growth?

Find out at West Africa's first virtual summit on data and analytics. Hear domain expert and key player of the industry.

Vipin Chawla Chief Technology Officer Eat 'n' Go

UZO MKPARU AVP/Group Head, CRM, Customer Analytics & Insights First City Monument Bank Limited

NIKHIL KHANDELWAL Chief Technology Officer Lagos Free Zone (Tolaram Group)

BAYO ADEDEJI Chief Executive OfficerWakanow

BHARAT SONI Chief Information Security Officer GTBank Plc

PRASANNA KUMAR BURRI Group Chief Information Officer Dangote Group

Over 350 senior executives will join us to know how big data and analytics can transform their businesses.

Engage and influence the people who matter when it comes to making investment decisions. Log on to das.martechvibe.com to know more.

15- 16, July 2020 Media Partners

22+ Speakers 18+ Virtual Sessions | 350+ Delegates | Online & On-Demand

EVENTS

Africa Oil & Power

September 15-17 | Cape Town, South Africa | www.aop2020.com

A forum for investing without boundaries A F RIC A OIL & Power (AOP) is returning to Cape Town for the fifth year running on September 15-17, 2020, uniting Africa’s investors and leaders in the oil and gas, power and downstream industries for three days.

Under the theme Invest Without Boundaries, AOP 2020 highlights the importance of the Africa Continental Free Trade Area, the largest free trade area in the world, as a catalyst for energy production and innovation.

As African producers increasingly extend their energy value chains and as all African nations court global FDI 116 | Africa Outlook issue 83

for their energy sectors, AOP 2020 is the place to discover who is investing in African energy, why now, and in which projects.

AOP 2020 is the only conference on the continent that fully unites power with petroleum, focusing on the driving factors behind Africa’s energy transition.

For the first time, AOP 2020 will also host the Africa Renewables Forum, the Africa LNG Forum and the Energy Finance Forum, in line with the vision of South Africa’s Department of Mineral Resources and Energy

and government and private sector partners from all four corners of the continent.

JUNE 1, 2020 SIPOPO INTERNATIONAL CONFERENCE HALL

MALABO, EQUATORIAL GUINEA

AFRICA OIL & INVESTMENT 2020 www.investineg.com

SPONSOR OR EXHIBIT: yoi@investineg.com REGISTER FOR A DELEGATE PASS: www.investineg.com The Africa Oil & Investment Forum is the launch event for the Equatorial Guinea 2020 Year of Investment campaign, aimed at attracting investment into key industries in Equatorial Guinea, boosting entrepreneurship, generating profit for investors and creating jobs. Organized in partnership with the Ministry of Mines and Hydrocarbons of Equatorial Guinea and the African Energy Chamber, the event shines a spotlight on investment-ready projects spanning the value chain.

EVENTS

Africa Energy Forum October 20-22 | Amsterdam, Netherlands | www.africa-energy-forum.com

Africa Energy Forum relocates to Amsterdam TH IS YEAR’S Africa Energy Forum (aef) has been rescheduled to take place in Amsterdam, the Netherlands from October 20-22, 2020. Previously due to take place in July, the move comes in the interests of all attendees’ safety after monitoring the COVID-19 situation and its impact on global economies.

The Forum, organised by EnergyNet, brings together decisionmakers in Africa’s energy sector to form partnerships, identify opportunities and collectively move the industry forward.

EnergyNet’s Managing Director Simon Gosling commented on the move: “This decision has not been taken lightly and we hope clients will recognise this opportunity to fast118 | Africa Outlook issue 83

track their business development after a significant period of disruption.

“We’ve chosen Amsterdam for a number of reasons – most importantly its exceptionally resilient economy and $42 billion investment fund being deployed across the continent to support energy transition goals. The Netherlands played host to the very first aef back in 1999, and continues to play an exceptional role in the development finance space with FMO being a significant and highly regarded player.

“Despite challenging times we’ve continued to receive registrations and high level speakers, so are confident this postponement will be timely and continue to focus heavily on project development objectives.”

In line with the SDG7 goal “access to affordable, reliable, sustainable and modern energy for all”, aef will host a stream dedicated to unpacking Africa’s role in achieving SDG7, debating how the continent can meet energy demands in light of global sustainability goals.

Between now and October, EnergyNet will host a series of webinars and other online content focusing on strategic energy programmes such as the REIPPPP resurgence in South Africa. The purpose will be to define the direction energy programmes are taking so clients can prepare strategies to be among the preferred bidders by the Africa Energy Forum dates in October.

Forum Sponsor

Africa

Sustainability.

In one place.

20-22 OCTOBER 2020 • AMSTERDAM

For more information contact: aef@energynet.co.uk africa-energy-forum.com

EVENTS

Market Access Africa November 23-26 | Durban, South Africa | www.access-africa.com

A global forum for food and agriculture buyers and sellers M ARKET ACCESS Africa (MAA) is the global meeting place for food and agriculture buyers and sellers – promoting African food and agriculture commodities, scaling up processing, development of robust supply chains as well as tailor-made financial schemes – while providing opportunities to access new and existing markets in order to boost companies’ bottom lines.

Organised by the African Agri Council (AAC) in partnership with African governments and leading agribusinesses, MAA will provide a global platform for stakeholders to identify the latest technologies that will raise the continent’s food and agricultural productivity, link to trading services and discuss policy reforms to curb Africa’s annual import bill.

MAA connects the entire food and agriculture value chain with a focus on market access. We need to harness the latest technologies, apply the right 120 | Africa Outlook issue 83

policies and raise the continent’s food and agricultural productivity to curb its annual import bill.

• Connect agri producers with exporters and buyers to expand into new markets to impact companies’ bottom lines • Connect food producers and processors with trade financiers, banks and impact investors to increase their turnover and get the right financial partners • Connect exporters and buyers to reliable commodity suppliers therefore creating an actual market place • Maximise profit across the agri-food value chain by connecting demand to suppliers • Value Chain Connect – plug and integrate African agribusinesses to regional and international value chains

WHAT TO EXPECT Pre-event workshops – tailor made breakout sessions designed to guide a large number of people through a specified topic in a structured way, encouraging communication and participation with structured, formal output.

Thinktanks – smaller break-out sessions (sector led) covering specific topics, opportunities and challenges. Discussions to feature in the business intelligence report.

Agritech and services expo – a dedicated space to enable key stakeholders to showcase their products or services to a broad audience of participants.

B2B matchmaking – designed to match business interests, the matchmaking service provides all attendees with the opportunity to make their time at the event more productive and will have the functionality to pre-schedule meetings.

23-26 November 2020 I ICC, Durban, South Africa CONNECTING THE ENTIRE AGRI-FOOD BUSINESS VALUE CHAIN Market Access Africa (MAA) is the global meeting place for buyers and sellers across the entire agri-food business value chain Participate as a SPONSOR or EXHIBITOR and expand your food and agri business network! Get in touch to customise an ideal package for your company – www.access-africa.com/get-in-touch

600+ Delegates

35+

Countries represented

60+

Speakers

Participate as a DELEGATE! Register online before 31 July and save R3000!

Quote MAA20AOM www.access-africa.com/register Our Hosts

@AgriCouncil #AgriCouncil

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THE FINAL WORD To round off each issue, we ask our contributing business leaders for their views on the same question

What technology is helping to transform your industry and how?

Adegoke Adegbami Chief Executive Officer, Mainstreet Microfinance Bank “There are many of them. In fact, technology changes very fast today.

There are new technologies being introduced to the market every other day. Generally, for our own industry, you have payment solutions. They enable people to make payment, contributions, collections, purchases, subscriptions and so on. There are loan technologies like loan origination, scoring, enhancement or top-up, loan analysis and so on. There are technologies that are also used to drive various internal processes like accounting, treasury, internal control, risk management and HR. “Recently we have seen technologies that enable you to conduct training and meetings.

There are those that help you keep your documents and archive them electronically. And of course, our traditional core banking and accounting applications now come with different capacities. All these are driven by artificial intelligence and machine learning. Internet of things and blockchain are also parts of the new technologies making inroads into our industry.”

Dean Shillaw Chief Commercial Officer, Africa Logistics Properties “Prefabrication is one of the building technology buzzwords right now.

We are seeing almost entire buildings being prefabricated in a factory, where it is fully automated with 122 | Africa Outlook issue 83

no human error in a much shorter turnaround time, and at the end of the day, time is money in this sector.

I find this extremely interesting and revolutionary for the construction industry. We are also keeping our eyes on water preservation technologies, as this is the most precious commodity here in Africa, and some of the solutions out there are fascinating.”

Selim Kaymak Chief Executive Officer, Londani Coal “We are a firm believer of back to basics and doing things correctly in the most safe, efficient and productive manner as possible. This platform or foundation has been entrenched in our operations and from that we are actively looking for opportunities where technologies can sustain and build on this solid foundation we have built.

“On the safety front, active vehicle tracking and camera monitoring has

provided us with much needed info to prevent safety infringements and also to be much more pro-active. On the other hand, investigation of incidents, with the aid of the said technologies, has aided a lot in identifying root causes and to install permanent corrective actions or measures to prevent incidents.

“In terms of production and measuring, we make active use of flyover surveys and by partnering with the industry leaders in the field.

Measuring, images and 3D modelling has aided a lot in reporting on and planning of our operations to extract full value and to make our operations as efficient as possible. Realtime data is used in our costing models, where each aspect of the operation can be quantified and qualified.”

Are you a CEO/Director with a company story to tell? Contact Africa Outlook now!

Building Mozambique for 95 years and counting...

CIMENTOS DE MOÇAMBIQUE

CONSTRUCTION

Cimentos de Moçambique continues to create prosperity for the country, not only by supplying major infrastructure with high quality cement, but through generating opportunities for people and communities Writer: Tom Wadlow Project Manager: Josh Mann

F

BUILDING MOZAMBIQUE FOR 95 YEARS AND COUNTING

Edney Vieira, Chairman and CEO, Cimentos de Moçambique

or a building material that traces back to ancient Greece and Rome, cement, it is fair to suggest, has stood the ultimate test of time.

Around 2,000 years ago, human ingenuity deduced a reaction between lime and volcanic ash when mixed with water, a cementing material which formed the basis of huge swathes of construction work in Western Europe, the classic pozzolana cement gaining its name from the Italian city Pozzuoli.

The Portland cement we are familiar with today was first developed in England by John Smeaton before being patented by Joseph Aspdin in 1824, who produced the material from a synthetic mixture of limestone and clay, a move which sparked an enormous spread of cement manufacturing worldwide throughout the 19th and 20th centuries.

Worldwide production is still on the rise today, the 4.1 billion tonnes made in 2019 markedly higher than

THE VIRTUOUS CEMENT CYCLE

See page

26 36

CIMENTOS DE MOÇAMBIQUE

“The competition here is very healthy,” he adds. “There are several competing companies which means we have to stay on our toes and make sure we produce the best possible product – we also have spare capacity meaning we are ready to fulfil any future demand.

“The market is well set up and the government has worked hard to safeguard our industry against unfair import competition, which has helped to protect quality, keep revenue in the country and maintain employment.”

A VIRTUOUS CYCLE Cimentos de Moçambique’s major advantage, as well as its geographic reach, is its brand recognition.

Being the sole operator in the country for decades enabled it to entrench itself into the market and put its stamp on almost every iconic building project until competition began to enter the market, and the fact it still commands the trust and custom it does is testament to the unwavering commitment to producing a quality product.

“In all my career I have not been at a

the 3.3 billion tonnes recorded in 2010, although slightly under the 4.18 billiontonne peak witnessed in 2014.

The wider point, however, is that modern-day construction is still reliant on the production of cement in enormous volumes all over the world.

In Mozambique, almost all of its

company with such a long and proud history of operation,” Vieira states.

“Mozambique’s recent history through the 20th century has been blighted by wars and instability, but the cement plants were still operating and helping to build the country – it is a remarkably resilient organisation. As a matter of fact, Cimentos de Moçambique has essentially built Mozambique.

“It is something which makes us proud, not only for me as CEO, but for the families who have dedicated their working lives to making sure we produce quality products, some being tied to the organisation over several generations.

“They are part of what I call a virtuous cycle of employment, production and productivity, with

CONSTRUCTION Cimentos de Moçambique at the centre, like the sun in a solar system which powers the planets revolving around it. This progressive cycle has been functioning for nearly 100 years, and long may it continue.”

The virtuous cycle Vieira refers to encompasses local suppliers up and down the value chain with whom the company does business.

Vieira is quick to acknowledge the critical role that both Mozambican and international partners play in ensuring the smooth running of the organisation on a day to day basis, Cimentos de Moçambique prioritising local vendors where possible in its procurement activities.

20th and 21st century infrastructure carries the cement stamp of just one organisation.

For almost 100 years, state-run and now privately owned Cimentos de Moçambique has been producing this vital building material all over the country, a defiant constant during a Africa Outlook issue 83 | 3

8 | Africa Outlook issue 83

Cimentos de Moçambique 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!

w w w. a f r i c a o u t l o o k m a g . c o m

Issue 83

THE www.africaoutlookmag.com/get-involved VIRTUOUS CEMENT CYCLE

AFRICA LOGISTICS PROPERTIES Driving an infrastructure revolution

TIGER ANIMAL FEEDS AND TIGER CHICKS Fuelling Zambian farming

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

Outlook Creative Services

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

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