Africa Outlook - Issue 84

SERENGETI BREWERIES

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

Keeping up with consumer tastes

Issue 84

POLMED Providing the critical peace of mind for South Africa’s police service

GROOTE SCHUUR HOSPITAL

82 YEARS OF PATIENT CARE Jeff Gable, Head of Research and Chief Economist at Absa, looks into the economic ramifications of COVID-19 in Africa

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WELCOME

In Good Health

EDITORIAL Editorial Director: Tom Wadlow tom.wadlow@outlookpublishing.com Editor: Dani Redd dani.redd@outlookpublishing.com

As the summer of 2020 draws to a close, this issue of Africa Outlook is packed full of examples of companies demonstrating their resilience through what continues to be an extraordinary time.

PRODUCTION Art Director: Stephen Giles steve.giles@outlookpublishing.com Senior Designer: Devon Collins devon.collins@outlookpublishing.com

This edition’s cover story hones in on the workings of a globally famous hospital in South Africa that has been at the frontline of the country’s ongoing fight against COVID-19.

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.

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Situated in the Western Cape, Groote Schuur Hospital was where Dr Christiaan Barnard performed the world’s first human to human heart transplant in 1967, arguably its most recognisable accolade. Fast-forward to today, and the hospital continues to develop its services and patient care, its CEO Dr Bhavna Patel offering exclusive insight into the latest goings on and plans for the future.

“For me, building on that innovative spirit, cultivating and nurturing an environment of supporting new thinking and being open to ideas makes the hospital an exciting place to work,” Patel tells us.

“Quality is never compromised, but innovative ideas, defined as anything that is new or different and that will improve the care that we offer our patients, are always supported. Hence our vision statement of ‘Leading Innovative Healthcare’.”

In an in-depth report, we examine Groote Schuur’s inspirational legacy as well as Patel’s plans to continue innovating and enhancing the patient experience.

In Tanzania, Serengeti Breweries Limited prides itself on producing and distributing leading beverage brands up and down the country. We caught up with Mark Ocitti, Managing Director, to see how the company is keeping up with ever-changing consumer tastes and supporting local enterprise.

“The acquisition in 2010 prompted increased investment in international quality standards, leading to increased job opportunities for the people of Tanzania and more revenue contribution to the government,” Ocitti says, commenting on the investment made by global giant Diageo.

“The company currently employs over 700 staff both directly and indirectly.

Further, we source 70 percent of our beer raw materials from a network of 400 local farmers – growers of barley, sorghum and maize.”

Elsewhere in this busy issue, we explore the economic ramifications of coronavirus with Absa Bank, while renewable energy expert Wartsila gives us a flavour of its ongoing projects on the continent.

Other exclusive interviews featured in this edition include conversations with South Africa’s Polmed insurance scheme, PEP Clothing, Royal Crown Packaging, eHealth Africa, Curo Fund Services and DP World Maputo.

Enjoy the read!

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Tom Wadlow Editorial Director, Outlook Publishing Africa Outlook issue 84 | 3

CONTENTS

20 158

164 REGULARS

6 NEWS Around Africa in seven stories

8

8 EXPERT EYE How grassroots innovation is transforming communities across Africa

BUSINESS INSIGHT

12 Energy

Power = Progress Wärtsilä’s Ville Rimali on Africa’s electrification challenges

16 Economy

12

Rebuilding African Economies Charting the economic effects of COVID-19 in Africa

18 Supply chain

Zambia: In the Logistics Spotlight A Q&A with Olivier Terra, Managing Director at Bollore Transport & Logistics Zambia Limited

TOPICAL FOCUS

20 Women in business

Bridging the Gender Divide Helping Africa’s female entrepreneurs grow

16 4 | Africa Outlook issue 84

EVENTS

158 Africa Oil & Power A forum for investing without boundaries

160 Africa Energy Forum Relocating to Amsterdam

162 Market Access Africa A global forum for food and agriculture buyers and sellers

164 African Utility Week and POWERGEN Africa The largest power and water utilities exhibition

166 THE FINAL WORD What impact has the coronavirus pandemic had on your industry, and how are you responding?

AFRICA OUTLOOK MAGAZINE

F E AT U R E S

22 SHOWCASING LEADING COMPANIES

24

Tell us your story and we’ll tell the world

HEALTHCARE

24 Groote Schuur Hospital Commemorating 82 Years of Patient Care

Celebrating one of South Africa’s most renowned hospitals

44 Polmed

Protecting the Protectors How Polmed provides peace of mind for South Africa’s police service

58 eHealth Africa & EHA Clinics

Nigeria’s New-Age Healthcare Leveraging the power of technology and information

FOOD & DRINK

66 Serengeti Breweries (SBL) The Pride of Tanzania

Keeping up with consumer tastes

80 National Alcohol and Liquor Factory (NALF) The Spirit of Ethiopia

Keeping up with consumer tastes

88 Java House

The Perfect Cup of Coffee Kenya’s coffee and dining ‘superbrand’

CONSTRUCTION

92 Lafarge Zambia Building a Nation

Setting the foundation’s for Zambia’s development

114 Dangote Cement Ghana Laying the Foundation

Supplying Ghanaian development with quality and reliability

MANUFACTURING

120 Pep Clothing

44

Clothing with Culture Inside Cape Town’s people-centric garment manufacturer

130 Royal Crown Packaging Limited (RCPL) Rising to the Challenge

Serving vital packaging needs in the pandemic period

SUPPLY CHAIN

136 DP World Maputo

Mozambique’s Global Gateway Making Maputo the port of call

148 Uganda Railways Corporation Staying on Track

Showing that rail is the future for East African logistics

66

FINANCE

154 Curo Fund Services

A Digital Journey Defined by Passion and Courage Embracing automation in times of change

120 Africa Outlook issue 84 | 5

NEWS Around Africa in seven stories…

H E A LT H C A R E

Amref Health Africa partners with Mastercard Foundation on COVID-19 training

T E L E C O M M U N I C AT I O N S

MTN SEES STRONG PROFIT MARGINS AMID COVID-19 CHALLENGES AF RICAN MULTINATI ON A L telecommunications giant MTN recently reported encouraging results for the first half of 2020, reporting service revenue growth of 9.4 percent and EBITDA growth of 10.9 percent.

Despite lockdown restrictions impacting its network rollout, the company invested R10 billion ($580 million) in capital expenditure, bringing a further 54 million people

into 3G and 4G coverage. It also enrolled a further 11 million subscribers to its service in the first six months of the year.

“While we expect the remainder of the year to be shaped by the ongoing challenges presented by the pandemic, we believe that MTN will remain comparatively resilient and is poised to sustain its growth over the medium term,” said MTN Group President and CEO Rob Shuter.

OIL & GAS

Dangote Industries to open Africa’s largest oil refinery in 2021 DA N G OT E OI L Refinery, the largest in Africa, is set to be opened early next year in Lagos, Nigeria. Dangote Industries’ Executive Director confirmed progress had been made and building was progressing as scheduled.

6 | Africa Outlook issue 84

MASTE R C A R D F O U N DATI O N has committed approximately $1.8 million of its COVID-19 Recovery and Resilience Programme to help Amref Health Africa fund a programme training 33,104 healthcare providers and 31,280 volunteers in identifying, treating and managing cases.

“During this pandemic, partnerships have proven to be essential, particularly in equipping health care personnel and strengthening diverse institutions in the front line against the social and economic aftermath of this disease,” said Dr Meshack Ndirangu, Country Director, Amref Health Africa in Kenya.

Amref’s existing digital learning solutions (LEAP and JIBU) will now be used to help healthcare workers carry out disease surveillance, referral, contact tracing and upholding biosafety standards.

The idea of the refinery was developed by Aliko Dangote, Africa’s wealthiest man. It will have the capacity to process 650,000 barrels of crude oil and handle three billion cubic feet of gas daily. It will consist of 1,000 kilometres of pipe infrastructure, making it the largest of its kind in the world.

Dangote Group will also be opening a fertiliser plant – the world’s biggest – in the vicinity, with a name-plate capacity of 3 million tons of urea and ammonia.

T E L E C O M M U N I C AT I O N S

MINING

Loon launches balloonpowered internet in Kenya

SA MINER GOLD FIELDS REPORTS SURGE IN PROFIT

LO O N – a subsidiary of Google’s parent company, Alphabet – recently launched a fleet of high-altitude balloons to deliver internet service to Kenya.

The balloons will hover around 12 miles up into the stratosphere and will initially provide a 4G LTE network connection to a 31,000 square mile area including Nairobi. It is collaborating with Telkom Africa, one of the country’s largest carriers, to do so.

G O L D F I E L DS recently reported a four-fold jump in half year earnings, with headlines per share increasing in price from $0.05 to $0.20. This is due to gold bullion surging in price.

However, the company remained “reasonably cautious” about the rest of the year’s profit, thanks to the COVID-19 crisis. An estimated 42,000 ounces of output was lost due to COVID-19-related stoppages.

Record gold prices and a weak rand are a lifeline for the South African gold industry after the disruption caused by the pandemic.

“A bittersweet respite for gold companies has been the rise in this safe haven metal to record levels,” said Chief Executive Officer Nick Holland.

LEADERSHIP

African Leadership Magazine unveils annual award winners T H E E DITORIAL board of the African Leadership Magazine recently unveiled the winners in the 17 categories of its African Business Leadership Awards 2020.

The winners were selected from over 220,000 entries by a three-step process including a call for nominations, online voting for shortlisted nominees,

The service is being billed as a costeffective solution to the challenge of providing internet access to underserved remote areas.

and a final review from the editorial board taking votes into consideration.

Rebecca Miano, CEO of Kenya Electricity Company, scooped the African Inspirational Business Leadership Award, while Patrice Motsepe, Chairman of African Rainbow Minerals, won the Lifetime Achievement Award.

“Our winners and all the nominees truly deserve to be recognised for the outstanding work they have done over the last year, and they continue to do for the development of our continent,” said the magazine’s Dr Ken Giami.

H E A LT H C A R E

SEVEN AFRICAN COUNTRIES BEGIN ADMINISTERING CORONAVIRUS ANTIBODY TESTS TH E A F R I C A N Centres for Disease Control and Prevention recently began administering coronavirus antibody tests in seven African countries.

“Liberia, Sierra Leone, Zambia, Zimbabwe, Cameroon, Nigeria, Morocco are the first set of countries that committed to it,” head of Africa CDC John Nkengasong said in a weekly briefing.

Dr Nkengasong added that Africa was making good progress towards developing a vaccine.

A continental strategy is being developed to set up a consortium of clinical trials, followed by the procurement and financing of vaccines.

Africa Outlook issue 84 | 7

EXPERT EYE

How Grassroots Innovation is Transforming Communities across Africa Wariara Waireri, Senior Manager in International Development at the Royal Academy of Engineering, discusses the impact of grassroots innovation across Africa Written by: Wariara Waireri

A

frica is home to eight of the 15 fastest growing economies in the world, and has a young but thriving startup scene.

The dynamic and fast-growing entrepreneurial landscape presents key opportunities for business and innovation, and has attracted investors and innovators from far and wide.

In 2019, African startups received a total of $1.3 billion in venture capital, almost twice as much as the previous year. The continent’s potential as a high-growth market is on the rise, and in addition to the economic boost that growth promises, grassroots innovation can play a transformative role in solving the continent’s biggest challenges.

The philosophy behind the Royal Academy of Engineering’s Africa Prize for Engineering Innovation is that startup success is crucial for delivering significant social benefits as well as economic gains. Locally developed innovations are best placed to make a sustainable impact in communities, as they emerge from real understanding of the local challenges and offer context-specific solutions.

Africa is increasingly being associated with a creative and collaborative ecosystem that enables successful grassroots innovation by local entrepreneurs. Nigeria – recently labelled the top space on the continent for startups – has become a venture hotbed. It is home to Africa’s first and largest open living lab and pre-incubation space, 8 | Africa Outlook issue 84

ABOUT THE EXPERT

Wariara Waireri is the Senior Manager for International Development at the Royal Academy of Engineering. She leads the Africa programs to build sustainable societies and inclusive economies that work for everyone.

Prior to this she ran her own organisation, The Engineering Lab, and also enjoyed stints at Safaricom, the Mara Foundation and the International Labour Organization. Waireri holds a Master of Science in Disasters, Adaption and Development from King’s College London.

Co-Creation Hub (CcHUB), which has built a community of over 14,000 entrepreneurs and supported over 120 early-stage ventures. Similarly, Kenya’s tech scene, dubbed ‘Silicon Savannah’, has generated over 1,300 startups according to a 2018 startup ecosystem survey, through its hubs and co-working spaces that

encourage collaborative innovation.

Such innovation ecosystems have created opportunities for communities to work together, develop skills and create solutions to problems with new and exciting technologies.

These burgeoning initiatives are still growing, but their capacity is currently outpaced by the need. 22 percent of Africa’s working population start new businesses without access to adequate support or capital to carry through, and entrepreneurs often operate in high risk, unregulated and dynamic markets, requiring a high level of innovation, experimentation and business acumen.

The Africa Prize was founded by the Royal Academy of Engineering in 2014 as an early response to this need.

Backed by the UK government, this unique initiative aims to nurture young African businesses with innovative and scalable engineering solutions to local challenges, through entrepreneurship support, mentorship, media exposure and access to networks in the UK and Africa.

The eight-month programme provides entrepreneurs with the foundation to operate a successful business within their complex ecosystems, developing pathways to scale by building bridges between entrepreneurs and business support.

Through this model, entrepreneurs developing grassroots innovations can build sustainable businesses that create better livelihoods for low and middle-income communities.

Over the last six years, Africa Prize alumni have created over 1,500 jobs and raised more than $14 million in grants and equity. More importantly though, a recent survey showed that they are projected to benefit over three million lives in the next five years, demonstrating the enormous impact of supporting grassroots solutions.

In the energy sector, low-cost solar cells are bringing power to some of the 600 million people on the continent who live in remote communities and villages. In Southern Africa, SolarTurtle is one of many Africa Prize startups trying to navigate the challenges of Africa’s off-grid electricity sector with mobile, flexible solar technology.

These low-cost solar cells are providing clean and affordable energy to communities in the Eastern Cape, as well as financially empowering women and young people with opportunities to run SolarTurtle Hubs as small energy franchises.

Much of the impact and success of

grassroots innovators comes from that crucial combination of sector and local knowledge. The innovators behind Sparky Dryer, a thermo dehydrator that increases produce shelf-life from days to years, developed their solution as a result of their experience growing up in smallholder farm families. Over the past year, they have expanded their sales from Uganda to throughout East Africa, and have developed programmes that have reached more than 2,500 young farmers and entrepreneurs, educating them in smart farming practices and expanding their professional opportunities.

Similarly, Safe Motherhood Alliance in Zambia was launched after the founder Muzalema Mwanza discovered on having her first child that mothers must provide their own delivery kits. Her team develops affordable baby delivery kits, and in just two years has scaled up into 20 clinics, distributed kits to 6,000

pregnant women and trained 200 midwives.

This small sample of startups is only a fraction of the innovations emerging from across the continent, and I am truly excited about what is in store for Africa. Global partnership and collaboration are key to sustainable development. We are already starting to see the snowball effect in our own alumni community, and hope this positive reinforcement of knowledge and expertise will continue to accelerate in the future.

The hugely successful results of the Africa Prize have been made possible through a network of generous supporters and partners, from all areas of engineering and business, and we hope more organisations will help it continue to make an impact. The more entrepreneurs that receive the support they need, the greater the chance that they will be able pass that success on, mentoring the next generation of innovators.

Africa Outlook issue 84 | 9

Outlook Creative Services Complementing the production of Africa Outlook, APAC Outlook, EME Outlook and North America Outlook magazines, Outlook Publishing’s awardwinning in-house team is now utilising these same specialist production skills to offer a full and bespoke range of editorial, design and marketing services via its new Outlook Creative Services division.

For more information on how we can work with you in providing a plethora of completely flexible and customisable production services, please visit: www.outlookpublishing.com/creative-services

DESIGN: Stephen Giles +44 (0) 1603 959 656 steve.giles@outlookpublishing.com

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Dani Redd +44 (0) 1603 959 667 dani.redd@outlookpublishing.com

WÄRTSILÄ

POWER = PRO

12 | Africa Outlook issue 84

OGRESS

ENERGY

Ville Rimali, Director of Growth & Development for Africa & Europe at Wärtsilä, discusses the challenges facing the African continent in its bid to implement much-needed electrification Writer: Tom Wadlow

B

y 2040 Africa, alarmingly, will become home to 90 percent of the world’s population who lack access to electricity.

According to figures published at the end of 2019 by the International Energy Agency (IEA), around 600 million people around the world today are unable to access energy, that figure only dropping to 530 million by 2030 if the IEA is proved correct.

It is an enormous problem. Africa’s populace is among the fastest growing and youngest in the world, with one in two people being added to the world’s population set to be African between now and 2040.

This is far higher than the growth rates seen in China during its economic and energy boom years, so the question of how Africa meets its electricity needs is fundamental to its prospects of socioeconomic development for decades to come.

For instance, the IEA predicts that demand for oil in Africa will outstrip that needed in the Middle East and China between 2018 and 2040.

“Although there are major differences between countries, with some having large electricity deficits and others being further along in meeting their citizens’ energy needs, the continent as a whole is behind Europe and the US, and there’s a huge need for electrification,” Africa Outlook issue 84 | 13

WÄRTSILÄ

comments Ville Rimali, Director of Growth & Development for Africa & Europe at Wärtsilä, a global energy technology and systems manufacturer headquartered in Finland.

“Africa’s electricity struggles are all the more striking when you consider the fact that the African economy is growing steadily, albeit at rates lower than the World Bank previously projected.

“So why, in spite of this, are large parts of Africa deprived of access to regular electricity? In short, supply hasn’t kept pace with demand. This is due to a number of factors, including rapid urbanisation, failure to make necessary investments, and high costs for existing electricity supplies.”

Rimali and Wärtsilä are wellplaced to comment on the subject.

A company with almost 200 years of experience behind it, Wärtsilä has 72 GW of power plant capacity in 180 countries around the world, with plants delivered to 46 of Africa’s 54 nations – capacity which stands at around 7,500 MW. For Rimali, a combination of under14 | Africa Outlook issue 84

“Wärtsilä is making promising inroads across the continent, Rimali keen to cite a number of projects in Mali and Senegal as it bids to help the continent transition to a 100 percent renewable future”

other institutions that can give grants and funding need to negotiate with governments to fund these projects.

“National utilities’ operating costs are also a challenge, as the bottom line is that their generation costs are higher than what they can legally investment and therefore struggling charge consumers. As a result, they infrastructure are key factors explainneed to be continually subsidised, ing Africa’s power problems. which is impractical if countries are “Supporting infrastructure – working towards a healthy power including power grids – hasn’t kept market.” up,” he adds. “Consequently, there The resultant picture is therefore are frequent blackouts, brownouts, one of high prices and a considerable and load shedding. Reliable power barrier to development, with infrastructure is a major challenge business attractiveness seriously today. This is partially because of a undermined by an unreliable and lack of generation, but also due to lack expensive power supply. of transmission.

In response, many governments are “Not all African governments have attempting to open their countries made the necessary investments to up to more foreign investment in the expand electricity production. Even energy sector, with transparency, inSouth Africa’s power utility company, ternationally recognised regulations Eskom, has had issues upgrading its and a guarantee on the security of generating capacity. There needs to investments identified as key to luring be the ability to build power plants and in outside parties. generation capacity.

Renewables are seen as a sustaina“The African Development Bank, ble and increasingly affordable option International Finance Corporation, and that could help to plug the massive

ENERGY Not only will it enable the mine to reduce fuel consumption, Fekola will be the first mine in the region to add energy storage and solar to its operations, the GEMS system also set to control a new 30MW solar plant.

In Senegal, Wärtsilä has delivered a 130MW Flexicycle plant. The Malicounda power project in Mbour is located 85 kilometres from the country’s capital, Dakar, and is based on a gas, multi-fuel, or liquid fuel power plant combined with a steam turbine.

The plant will operate on seven Wärtsilä 50 engines operating initially on heavy fuel oil, with an option to convert to a gas fuelled operation as soon as gas becomes available.

This adds to the 450MW of Wärtsilä installed capacity in Senegal, the county’s leading provider of power generation equipment.

THE WÄRTSILÄ MODULAR BLOCK In December 2019, Wärtsilä received the first order for its innovative new Wärtsilä Modular Block solution for power generation from Aggreko, a global provider of mobile, modular power, temperature control and energy services.

Four Wärtsilä Modular Block enclosures, with one mediumspeed Wärtsilä 32 engine in each, will provide 40 MW of energy to Resolute Mining’s Syama off-grid gold mine in Mali. The Wärtsilä Modular Block solution will replace the existing diesel generators currently powering the mine and,

gap in supply. Here, Wärtsilä is making promising inroads across the continent, Rimali keen to cite a number of projects in Mali and Senegal as it bids to help the continent transition to a 100 percent renewable future.

These include the company’s first African energy storage development.

Located in Mali, Wärtsilä will optimise the energy system at the Fekola Mine in the southwest of the country through the design and engineer of a cutting-edge 17MW/15MWh energy storage system based on its GEMS energy management solution.

And it is through pioneering projects such as this that will enable the firm to continue powering muchneeded electrification progress across the region, as Rimali concludes confidently.

“We are proud of all the projects we have delivered in Africa, whether they are EPC or engineering and equipment,” he says. “Wärtsilä can provide complete smart energy solutions, enabling a 100 percent renewable energy future in Africa, with flexibility and storage easing up the transition.”

Africa Outlook issue 84 | 15

COVID-19

REBUILDING

AFRICAN ECONOMIES Most forecasters agree that 2020 will be Africa’s first continental recession since the early 1990s. Whilst growth is expected to start to recover from 2021, the damage done to living standards, per capita incomes, and poverty rates is likely to take many years to recover from.”

This bleak picture is painted by Jeff Gable, Head of Research and Chief Economist at Absa, one of Africa’s largest diversified financial services companies.

And it’s one he’s more than qualified to comment on, having 25 years of experience in covering emerging markets. He joined Absa in early 2007, and his Johannesburg-based team covers macroeconomics, foreign exchange, interest rates and credit for South Africa and over a dozen other African markets.

But despite his expertise, Gable admits that the economic ramifications of COVID-19 are difficult to predict, not least because the official macroeconomic data has not yet appeared.

16 | Africa Outlook issue 84

Jeff Gable, Head of Research and Chief Economist at Absa, provides insights into the economic ramifications of COVID-19 in Africa Written by: Dani Redd Furthermore, within Africa, there is a challenge when it comes to data collection.

“Bar a few countries, there is little high-frequency macro data with which to monitor the health of the economy in near real-time,” he explains. “Understanding where the worst of the economic impact of the COVID-19 crisis is being felt, and designing and implementing quickly appropriate policy

interventions is even more difficult.”

Africa also faces the same issue when it comes to public health. The pandemic has highlighted the necessity for accurate and timely data monitoring, but many African countries lag far behind global best practice for tracing and tracking. Even so, Gable is able to provide Africa Outlook with his economic predictions for Africa.

ECONOMIC IMPACT Although data collection might be difficult, Gable and his team have begun to gauge the economic effects of COVID-19 based upon anecdotal evidence and the sets of high frequency data they’ve obtained.

“Most fiercely and immediately hit have been those economies for which tourism is a major source of income and employment,” the Head of Research and Chief Economist says. “Commodity producers, too, have felt the pinch, particularly those in the oil sector as prices plummeted earlier in the year.”

Another less obvious factor is that remittance flows from Africa’s global

ECONOMY diaspora are likely to reduce. This is a key source of income for some of the poorest economies on the continent.

But there is one positive, according to Gable. Compared to other countries, Africa has relatively few COVID-19 cases – around 900,00 across the continent, with more than half in South Africa.

“This has provided space for most countries on the continent to ease the most restrictive social distancing measures relatively quickly, thus limiting some of economic impact witnessed in other countries where lockdowns, enforced quarantines and other extreme social distancing has gone on longer,” Gable explains.

In the long-term, he expects that there will be a divergent rate of recovery across African countries.

Places reliant on tourism will feel the pinch, as will those economies leveraged around very few commodities (as demand for them might drop in a post-COVID world).

Unsurprisingly, Gable expects that all African economies will emerge from the crisis with higher levels of debt as they struggle to regain previous rates of growth.

“Efforts to ensure Africa’s progress against the Millennium Development Goals will therefore need to become more innovative and entrepreneurial if Africa is to make good its goal of a more promising future for all who live in it,” he says.

SIYASIZANA So, what are African governments and regional organisations doing to facilitate economic recovery? Many lack the financial resources of more developed countries, and are simply not able to provide the same level of direct fiscal support. But that doesn’t mean they aren’t doing all that they can.

Gable provides a few examples.

Kenya, he informs us, has cut VAT, corporate tax and more in order to provide short term relief. South Africa aims to prevent mass layoffs by

allowing the use of the Unemployment Insurance Fund to top up wages for furloughed workers, while also increasing child support grants.

The G20’s initiative for bilateral creditors to provide debt holidays for the poorest countries has given some places in Africa welcome breathing space. Organisations such as the IMF, World Bank and African Development bank have quickly mobilised to provide critical, low-cost hard currency funding.

“This will help ensure that the immediate health crisis doesn’t spiral beyond control simply because governments weren’t able to raise the money necessary for critical health interventions,” he explains.

Meanwhile, Absa jumped to its customers’ aid with a Payment Relief Programme, which provided quick, temporary financial relief to more than 730,000 customers totalling $500 million. Customers were able to pause credit payments for three months, and given repayment discounts on certain products.

It is now working on Siyasizana – a word which means “help one another” – working with clients to provide longterm, sustainable economic solutions tailored to the individual. The bank will work with each customer to help them remain resilient through services such as overdrafts, home loans and more.

THE LESSONS LEARNED All around the world businesses, countries and households have learned lessons about the pandemic. One of the most important ones is about cooperation – health data and pharmaceutical research will need to be shared to reduce chances of COVID-19 enduring or reoccurring.

What’s more, the importance of building resilient institutions has never been greater.

“Countries will look to improve the capacity of their own healthcare systems, while businesses will need to find ways to both continue to enjoy the efficiency gains that come with

globalisation whilst also having more resiliency in the advent of sudden trade interruptions,” Gable explains.

Another important lesson, he continues, is one of financial leverage – an investment strategy of using borrowed capital to increase potential ROI. Many businesses and households will be emerging from the crisis with more leverage than they entered with.

According to Gable, many countries and businesses in Africa used the easy monetary conditions that proceeded from the global financial crisis to continue borrowing.

“This left their balance sheets far more stretched at the outset of the COVID-19 crisis than they had been at the outset of the financial crash,” he says.

Ultimately, this has resulted in less space to borrow within the downturn.

“People are beginning to recognise that an important part of economic and financial resilience comes from being more financially cautious in the good times,” Gable concludes.

Just like the rest of the world, Africa has a long road to economic recovery. But it is to be hoped that organisations, businesses and governments can be rebuilt so that they are more resilient than before.

JEFF GABLE Head of Research: Fixed Income Currencies and Commodities (FICC) and Chief Economist for Absa. Voted Best Research House at the JSE/Spire Awards last October (for the fourth time in the last five years).

Gable brings 25 years of experience covering emerging markets to his role, having joined Absa in early 2007 from Barclays in London and with his earlier career spanning Deutsche Bank (London), the IMF (US) and the Bank of Canada (Canada).

His Johannesburg-based team covers macroeconomics, foreign exchange, interest rates and credit for South Africa and more than a dozen markets across the continent.

Africa Outlook issue 84 | 17

ZAMBIA SPOTLIGHT

Z

ZAMBIA: IN THE LOGISTICS SPOTLIGHT

As COVID-19 continues to disrupt supply chains all over the world, we caught up with Bollore Logistics to assess the impact and ramifications of the pandemic in Zambia Written by: Tom Wadlow

ambia – nestled in Southern Africa and bordered by the likes of Angola, Namibia, the DRC, Botswana, Malawi, Mozambique and Tanzania, it is no surprise that the country is home to a busy cross-border logistics scene.

As Africa’s second largest copper producer, the country enjoyed a boom period of economic growth between 2004 and 2014, averaging 7.4 percent annual GDP expansion, a trend which propelled it to middle-income country status in 2011.

The country has continued to grow, albeit more slowly, and now more than ever it is looking to become a regional trading and transport hub in Southern Africa.

Olivier Terra is better placed than most to comment on such ambitions.

He is Managing Director of Bollore Transport & Logistics Zambia Limited, part of the global Bollore Logistics which operates the largest integrated logistics network in Africa. Here, Terra answers our questions.

Africa Outlook (AfO): How did you get into the logistics industry, and what is it about the industry which has allowed you to enjoy a long and successful career to date?

Olivier Terra (OT): I have always had a keen interest for international trade as far back as my early childhood memories. We lived in different countries with my parents as my dad was in the business. Ships, trains and trucks were big boys’ toys at the time. I joined the logistics industry more than 20 years ago and keep learning every day. It is a service industry in which client satisfaction becomes a drug.

And you get pretty quick rewards each time you meet or exceed someone’s expectations.

AfO: Does Zambia have what it takes to become a logistics hub for the Southern Africa region?

OT: Absolutely. This is a land-linked country, not a land locked one. It has

18 | Africa Outlook issue 84

SUPPLY CHAIN the opportunity to facilitate trade with its bigger brothers in DRC, in the great lake region or by driving policies with its neighbours to facilitate traffic on each of the corridors to and from Zambia.

AfO: What impact has the COVID-19 pandemic had on the industry? Did it take you by surprise or catch you off guard?

OT: We were somehow taken by surprise, although we did see it coming.

Remember Europe was hit way before the African continent. But South Africa closed its doors very abruptly and without any consultation with its partners. This created kneejerk reactions and a set of incoherent measures taken from one border to the next which fuelled confusion. There were no consultations either from local authorities with representatives of the trucking or forwarding industry, for example, which disabled us from disseminating the message to and from our members.

AfO: How has Bollore responded to the situation?

OT: We had prepared ourselves early on, set up a work from home scenario and self-contained ourselves in March

to protect our staff and our partners.

We were ready to function without interruption throughout the pandemic.

your staff. This inevitably requires more empowerment and a better use of your own resources, time and online tools.

AfO: What measures would you like to see implemented by the government to help the logistics industry?

How can legislation help to alleviate the disruption caused by the pandemic?

AfO: Tell us about some of Bollore’s landmark achievements and developments over the past few years. How has the company grown and enhanced its services for customers?

OT: We would certainly benefit from added consultation. Regular technical review meetings with experts from the industry and policy makers can only improve the decision-making process.

ZRA have done pretty well in encouraging pre-registration of trucks and pre-clearance, but there is a growing demand for borders to stay open late and to improve efficiency of staff.

There is a growing need for more regional integration of customs systems to speed up formalities and curb abuse.

AfO: Are there any lessons learned or practices you have adopted that will remain in place post-pandemic?

OT: Working from remote locations, whether at home or not, is a growing trend and the pandemic has only exacerbated this need. This requires a great deal of autonomy and trust in

OT: We have built on the strengths of our very extensive integrated logistics network. Our Chingola logistics hub serves that purpose and offers bonded warehousing solutions to our DRC customers who wish to optimise their supply chain. Our Hinterland teams in Zambia and on the various corridors enable us to service all ports from Zambia, import and export. We own a large fleet of trucks through our White Horse/Zalawi Zambian entity and we capitalise on our advanced knowledge of customs processes and regulations to assist our customers and enable them to better manage their customs risks.

AfO: Looking ahead, are you optimistic about the future for both Bollore and the wider logistics industry in Zambia?

OT: Absolutely – this search for excellence and entrepreneurial spirit is at the heart of Bollore values.

Remember, we are a family-owned group which has clawed its way into the top 10 biggest logistics companies in the world. This is due to a relentless drive to create and sustain global solutions that are innovative in servicing multimodal transports, global supply chains and industrial projects; all of this in compliance with regulations and ethics. Our operational excellence is primarily based on our team’s expertise and proactivity, and our engagement in continuous improvement.

Africa Outlook issue 84 | 19

TOPICAL FOCUS

BRIDGING THE GENDER DIVIDE Africa’s women entrepreneurs face structural and societal obstacles, but helping them unlock their potential is essential for economic growth Writer: Dani Redd

A

frica has taken great strides in closing its gender gap over the past few years.

The World Economic Forum’s Global Gender Gap Report 2020 placed Rwanda in the top 10 of the Global Gender Gap Index Rating. Meanwhile, new initiatives have been developed to celebrate businesswomen in Africa – Reset Global People and Pulse recently announced a list of the Top 100 Women CEOs in Africa. Topping the bill is the inspiring Abimbola Alale, 20 | Africa Outlook issue 84

CEO of Nigerian Communication Satellite Limited, who boasts a PhD in Peace, Security and Strategic Studies, a degree in Space Studies and an MBA from the International Space University.

On the African continent, an increasing number of women are choosing to start their own businesses.

In fact, Sub-Saharan Africa is the only region in the world where women entrepreneurs are in the majority.

But it’s not all good news. According

to a report jointly produced by World Bank’s Africa Region Gender Innovation Lab and the FCI Global Practice, women’s businesses are consistently outperformed by men’s, with fewer employees, lower average sales, and less value-added. So what explains this underperformance?

THE PROBLEM According to the report, data obtained from 14 impact datasets across 10 African countries shows that the typical male-owned firm has six times the capital investment of female-owned enterprises.

This is because women commonly have less access to assets, which consequently affects their ability to secure loans. Furthermore, women are less likely to have control over household resources and are sometimes pressured to share their profits within the family, instead of reinvesting them in their businesses.

WOMEN IN BUSINESS Gender-biased beliefs also hamper women’s prospects in the sphere of business, with some women experiencing discrimination for attempting to pursue an entrepreneurial career.

A lack of formal education and training leads to lower levels of confidence, and subsequently reduces risk-taking and ambition. It also means that many women tend to cluster in female-dominated sectors such as retail and hospitality, rather than crossing over to male-dominated sectors like construction and finance, which offer higher financial yields.

THE SOLUTION The problems faced by women entrepreneurs sound almost insurmountable. But the good news is that many governments, NGOs and businesses are taking targeted steps to solve them, enabling women to realise their potential.

Training programmes that are specifically targeted towards women can address skills gaps and lead to increased confidence.

Personal initiative training in Togo has had positive effects on profits of female-owned micro-enterprises and generated a 91 percent ROI. An entrepreneurship training programme in Ethiopia has improved the business performance of women-owned firms.

Meanwhile, improving women’s access to finance will increase their ability to build businesses. There are plenty of grassroots organisations helping to facilitate this, including the Women’s Microfinance Initiative, which is establishing womenadministered village-level loan hubs across East Africa. These hubs offer capital, training and support services to enable women to engage in sustainable, income-producing activities.

Diariétou Gaye, World Bank Director of Strategy and Operations for the Africa Region, believes more can be done to enable women to access

NINE FACTORS HOLDING BACK WOMEN’S BUSINESSES IN AFRICA According to “Profiting from Parity: Unlocking the Potential of Women’s Businesses in Africa”, a report by World Bank’s Africa Region Gender Innovation Lab and the FCI Global Practice, there are nine factors impeding women’s entrepreneurship. These are: 1. LEGAL DISCRIMINATION: In many African countries, women simply do not have the same legal rights as men to open a bank account, register a business or own property.

2. SOCIAL NORMS: Women are affected by societal influences, and in many African countries, social norms do not match with a woman striving to grow a business.

3. RISK OF GENDER-BASED VIOLENCE: GBV takes its toll on women’s wellbeing, and working outside the home may put them at risk. In Malawi, 14 percent of female entrepreneurs have been subject to physical or emotional violence from a partner.

4. EDUCATION AND SKILLS GAPS: According to the report, selfemployed women have completed fewer years of formal education than men, while men often have higher technical skills.

5. CONFIDENCE AND RISK PREFERENCES: Women business owners in Africa demonstrate less confidence in their abilities – in Ghana, women are 14 percent less likely than men to think they would be a good leader.

6. FINANCE AND ASSETS: Women control fewer assets, affecting their capacity for loans and investments.

7. ACCESS TO NETWORKS AND INFORMATION: Women don’t have the same access as men to large, diverse and well-resourced networks that enable their businesses to grow.

8. HOUSEHOLD ALLOCATION OF PRODUCTIVE RESOURCES: Women often lack authority over household assets and are often pressured to share resources.

9. DOMESTIC RESPONSIBILITIES: Women in Africa spend more time than men on domestic chores and caring for household members, which limits the amount of time they can dedicate to their business.

bank loans by eliminating the need for collateral.

“In Ethiopia, psychometric testing measuring honesty and willingness to repay loans offers a promising solution, as demonstrated by a World Bank initiative involving a partnership with one of the country’s financial institutions,” he explains.

More and more is being done to help women advance in business across Africa. To do so is integral both to women’s wellbeing and the economic advancement of society.

When women and men have equal opportunities in business, it leads to a more productive society and betterperforming institutions.

Africa Outlook issue 84 | 21

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With content compiled by our experienced editorial team, complemented by an in-house design and production team ensuring delivery to the highest standards, we look to promote the latest in engaging news, industry trends and success stories from the length and breadth of Africa.

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Issue 84

Commemorating 82 Years of Patient Care Healthcare in South Africa is challenging, but Groote Schuur Hospital continually rises to the occasion with its rich legacy, passionate CEO, and expert staff Writer: Dani Redd | Project Manager: Callam Waller

rtunity

HEALTHCARE

G

roote Schuur Hospital is an imposing stone building in the shadow of Devil’s Peak on the Western Cape, part of a ‘miniature city’ of different accommodation and training centres.

Above its central gable is a statue of Hygeia, the Greek goddess of health – she has been welcoming patients since the hospital opened in 1938. In its current incarnation it is a 975-bed public hospital providing specialist and sub-specialist care, with strengths in transplant services and cancer care. It also offers services in all medical and surgical sub-disciplines, psychiatric, neurosciences, obstetrics, gynaecology, neo-natal care and much more. The Department of Anaesthesia, Peri-operative Medicine and Critical Care support all these specialised activities. An estimated 10,000 people pass through its doors on a daily basis.

If the walls of the building could talk,

they would have thousands of stories to tell. Stories of ground-breaking medical procedures; of the upheavals of World War II and of apartheid; of world-famous doctors and dedicated nurses.

“The legacy of Groote Schuur Hospital is a huge inspiration to all who work at the institution and all who wish that they could work there,” says Dr Bhavna Patel, CEO of Groote Schuur Hospital (or GSH).

Her own journey, from medical student to CEO, is in itself an inspiration. Patel has had a lifelong interest in becoming a doctor.

“After qualifying at the University of Cape Town, I completed my internship at Groote Schuur Hospital. You must understand that this was around the time when apartheid was still very much prevalent in South Africa; while the class was only comprised of 10 percent non-whites, after completing

six years of study, very few of the nonwhites were employed in the public hospitals. I therefore started a private practice, which I managed for about eight years,” she explains.

During this period, Patel studied a fellowship with a specialisation in Public Health and was placed on rotation at GSH. And it was here she stayed, rising through the ranks until she transitioned from the position of senior manager to CEO. “I am humbled and proud to lead such a wonderful institution,” she says.

AN INSPIRING LEGACY And it’s easy to see why.

Groote Schuur Hospital opened to great fanfare in 1938; a magnificent cross-shaped structure designed to promote recovery with its wellventilated, light-filled wards, and balconies and verandas for patients to enjoy the fresh air.

POLMED Providing the critical peace of mind for South Africa’s police service

CELEBRATING ONE OF SOUTH AFRICA’S MOST RENOWNED HOSPITALS

GROOTE SCHUUR HOSPITAL

82 YEARS OF PATIENT CARE

2 | Africa Outlook issue 84

Africa Outlook issue 84 | 3

Jeff Gable, Head of Research and Chief Economist at Absa, looks into the economic ramifications of COVID-19 in Africa

www.africaoutlookmag.com/get-involved

GROOTE SCHUUR HOSPITAL

Commemorating 82 Years of Patient Care Healthcare in South Africa is challenging, but Groote Schuur Hospital continually rises to the occasion with its rich legacy, passionate CEO, and expert staff Writer: Dani Redd | Project Manager: Callam Waller

24 | Africa Outlook issue 84

HEALTHCARE

G

roote Schuur Hospital is an imposing stone building in the shadow of Devil’s Peak on the Western Cape, part of a ‘miniature city’ of different accommodation and training centres.

Above its central gable is a statue of Hygeia, the Greek goddess of health – she has been welcoming patients since the hospital opened in 1938. In its current incarnation it is a 975-bed public hospital providing specialist and sub-specialist care, with strengths in transplant services and cancer care. It also offers services in all medical and surgical sub-disciplines, psychiatric, neurosciences, obstetrics, gynaecology, neo-natal care and much more. The Department of Anaesthesia, Peri-operative Medicine and Critical Care support all these specialised activities. An estimated 10,000 people pass through its doors on a daily basis.

If the walls of the building could talk,

they would have thousands of stories to tell. Stories of ground-breaking medical procedures; of the upheavals of World War II and of apartheid; of world-famous doctors and dedicated nurses.

“The legacy of Groote Schuur Hospital is a huge inspiration to all who work at the institution and all who wish that they could work there,” says Dr Bhavna Patel, CEO of Groote Schuur Hospital (or GSH).

Her own journey, from medical student to CEO, is in itself an inspiration. Patel has had a lifelong interest in becoming a doctor.

“After qualifying at the University of Cape Town, I completed my internship at Groote Schuur Hospital. You must understand that this was around the time when apartheid was still very much prevalent in South Africa; while the class was only comprised of 10 percent non-whites, after completing

six years of study, very few of the nonwhites were employed in the public hospitals. I therefore started a private practice, which I managed for about eight years,” she explains.

During this period, Patel studied a fellowship with a specialisation in Public Health and was placed on rotation at GSH. And it was here she stayed, rising through the ranks until she transitioned from the position of senior manager to CEO. “I am humbled and proud to lead such a wonderful institution,” she says.

AN INSPIRING LEGACY And it’s easy to see why.

Groote Schuur Hospital opened to great fanfare in 1938; a magnificent cross-shaped structure designed to promote recovery with its wellventilated, light-filled wards, and balconies and verandas for patients to enjoy the fresh air.

Africa Outlook issue 84 | 25

“high-flow nasal oxygen is saving lives and sparing some patients the trauma of intubation” O2FLO High Flow Respiratory Humidifier is a simple to use system that delivers warmed and humidified respiratory gases to spontaneously breathing patients and is capable of providing high flow therapy.

UTH AFR SO

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“the revolution in paediatric care, the symba bed!”

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Phoenix Neomed is the exclusive distributor of Inspired O2FLO. We have been part of the fight against the Coronavirus, commissioing these life saving units around the country.

Symba was developed through extensive technical and market research. It goes beyond current cot-beds offering a safe, mobile and accessible product tailored for both patients, parents and medical professionals.

We’re proud to support local manufacture and always get excited for our customers who are installing this innovative and intuative South African product. paediatric hospital bed

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“HFO ventilation can reduce premature baby and neonate mortality” Humming Vue is a high value, full-featured, flexible paediatric HFO ventilator. Like previous Metran models, Humming Vue is a volume generator ventilator. It produces the precise stroke volume (SV) to obtain a specified amplitude pressure (∆P). SV is similar to tidal volume in conventional ventilation. A fixed SV is guaranteed no matter how the lung compliance changes.

Phoenix Neomed cares about the whole family, and this is why we are proud to introduce the Humming Vue to the South African market.

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GROOTE SCHUUR HOSPITAL But despite a promising start, the advent of the Second World War quickly strained funds and services.

In 1944 the Plastic Surgery Unit was established, dealing with facial disfigurements and skin grafting for burns.

Throughout the 50s and 60s, GSH’s doctors and surgeons conducted world-renowned research and surgical procedures. Dr James Louw introduced the pap smear to South Africa in 1955, while in 1957 Allan Cormack

GROOTE SCHUUR HOSPITAL – LANDMARK EVENTS 1938 – Groote Schuur Hospital opens to the public 1955 – The first operation in Africa to remove a tumour on the adrenal gland of a patient with primary aldosteronism is successfully performed 1955 – Dr James Louw, from GSH’s Department of Obstetrics and Gynaecology, introduces the pap smear to South Africa 1957 – Allan Cormack develops a prototype of the world’s first CAT scanner (and in 1979 jointly wins the Nobel Prize for his contribution to x-ray computed topography) 1958 – Africa’s first successful open-heart surgery is performed by Dr Christiaan Barnard 1967 – Members of the university and hospital develop the world’s first blood warming machine 1967 – The world’s first human heart transplant is performed by Dr Christiaan Barnard 1975 – The world’s first vascularized human fallopian tube transplant is performed by Dr Brian Cohen 1981 – Mr W. N. Wicomb develops a method for storing and preserving donor hearts (another world first) 1983 – The world’s first liver transplant using a heterotopic technique from a liver grown on a pig’s back is performed at GSH 1986 – the Cape’s first test tube twins are born 1989 – A technique to locate brain tumours without invasive surgery is discovered 2003 – The hospital makes the world’s first successful delivery of a baby grown attached to the mother’s liver, rather than the uterus 2013 – The first operation for a brain tumour using intra-operative fluorescence is conducted at a South African public hospital 2015 – Dr Chin implants the world’s smallest pacemaker into a patient – the first such procedure in the MEA region 2017 – Professor Semple and Dr Mustak perform the world’s first endoscopic minimally invasive surgery using the eye socket as an entry point

28 | Africa Outlook issue 84

developed the world’s first CAT scanner (a contribution to medicine that would later see him win the Nobel Prize).

Arguably, 1967 represents the zenith of GSH’s contribution to medicine, as this was the year that Dr Christiaan Barnard performed the world’s first human to human heart transplant.

This event placed the hospital in the spotlight.

“On Saturday, I was a surgeon in South Africa, very little known. On Monday, I was world renowned,” Barnard said at the time.

From developing the world’s first blood-warming machine in 1967, to delivering a ‘miracle baby’ that gestated on the mother’s liver in 2003, GSH has broken new medical ground on many occasions.

“For me, building on that innovative spirit, cultivating and nurturing an environment of supporting new thinking and being open to ideas makes the hospital an exciting place to work,” Patel explains. “Quality is never compromised, but innovative ideas, defined as anything that is new or different and that will improve the care that we offer our patients, are always supported. Hence our vision statement of ‘Leading Innovative Healthcare’.”

S

tarted in 2009 with a mission to focus on neonatal and paediatric patients, Phoenix Neomed has established itself as a leader in the business of medical equipment. Founded by former nurse Eleanor Hamer the company was born out of one important goal … ‘making a difference’.

This commitment is evident in our agility and the diversification of our offerings within the medical field.

to our rise as the perfect partner for patient care with bedside training on all products in our portfolio to all end users ad infinitum.

It’s no longer all about the babies, The current ‘coronavirus’ landscape has made our contribution even more important. Our latest we take care of products in this fight have been instrumental in

Positively influence to the infant mortality rate is at the core of our professional directive in the Republic of South Africa and beyond. By using the latest advancements in technology, we ensure life support to premature and vulnerable infants by providing state-of-the-art medical equipment.

The Phoenix Neomed footprint comprises of a sales team both in South Africa and Sub-Saharan territories with a majority of the sales people and clinical application specialists being clinically trained in nursing and nurse education. It is this attention to education that makes us the perfect partner and trusted advisor to our clients when it comes to Intensive care of the neonatal, paediatric and adult patients.

everyone

saving lives world wide. The “Inspired” Vincent 02Flo™ High Flow Oxygen Therapy (HFOT) device has also been performing miracles in the hands of the highly specialized front line staff throughout the country since March, 2020 led by the specialists in their field at Groote Schuur Hospital, and many of the academic hospitals country wide.

As we have grown and flourished in this mission, we now have a vehicle to spread the word in “caring for everyone.” Not just the patients but the healthcare practitioners. This is our latest mission, and one that we don’t take lightly! We strive and challenge ourselves to not only get it right, but to delivery beyond expectations.

Detailed training of the end users through skills transference is key to our patient care ethos. This perpetual support on technical and clinical training and a ‘customer-centric’ approach has contributed

Email: sales@phoenixneomed.co.za 1221 T +27(0) 11 431 1221011 | E431sales@phoenixneomed.co.za | www.phoenixneomed.com Fax:

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GROOTE SCHUUR HOSPITAL INNOVATION THROUGH TRAINING

CULTURE CURATION CEO Bhavna Patel’s Leadership Development Programme is based around three core verticals: LEADING – The programme was designed for the leaders to get to know and understand themselves, others, and their teams.

INNOVATIVE – The programme helped with implementation and management of improvement initiatives that have been integrated into managers’ daily activities, in the broader context of leading their area of responsibility at Groote Schuur Hospital. Improvements were managed using a system that allowed for the results to become part of the normal activities of the area.

HEALTHCARE – This relates to an outcome measuring the improvement of delivering quality healthcare to the patients through improved leadership, better team functioning and creating a culture of ongoing continuous improvements.

30 | Africa Outlook issue 84

Since first taking office, Patel has prioritised this vision statement.

“We strive to deliver quality healthcare to the patients through improved leadership, better team functioning and creating a culture of ongoing continuous improvements,” the CEO explains.

Realising that few of the hospital’s senior executives had any formal training or qualifications in management and leadership, Patel conceptualised and implemented a Leadership Development Programme to facilitate learning, based around the vision statement.

Many of the learning activities took place internally, facilitated by Patel. One aspect of the programme included a call for innovative ideas during a one-week scoping exercise, supported by the Bertha Centre for Social Innovation and Entrepreneurship at Cape Town University. The best ideas were selected and ultimately developed, including a Resource Hub for volunteers, ways of streamlining referrals and communicating and tracking via an eBoard.

In 2015 an Innovation Hub was opened, a physical environment where staff could think outside the box, without the usual distractions of work.

Patel desires to maintain this cycle of continuous improvement, enabling GSH to become a resilient learning organisation, constantly striving for excellence and adapting to change.

In her opinion, excellence is achieved through education and staff learning.

The hospital is affiliated with the University of Cape Town, one of Africa’s top-ranked institutions. It provides a practical training platform for both undergraduates and postgraduates.

“On top of that we also serve as the base where all the university research activities happen, leading to much acclaim for both the university and the hospital,” Patel explains.

Torque Medical Supplies Torque Medical (Pty) Ltd (Torque Medical), your trusted and professional service provider brings you top of class healthcare equipment and accessories that are at the heart of saving lives.

The company, together with its subsidiary, Isifuba (Pty) Ltd (Isifuba), has recently been acquired by new shareholders, the Serialong Trust whose founder is an entrepreneur, former Business Leadership South Africa (BLSA) Chief Executive and Chancellor of the University of Free State, Prof. Bonang Mohale.

Torque is a proudly South African company with 100% Black Ownership, 75% of which is Black-Woman owned.

It focuses on Cardiology and Surgical products, while Isifuba focuses on export, sub-distribution and manufacturing opportunities within the same healthcare space.

Caring for people is at the heart of everything we do. We are people who help all people, whether they are cardiologists and surgeons; hospital employees; health scheme administrators; or patients … We are helping people on their path to better, safer, more responsible access to the medical solutions and knowledge they need.

In delivering on our vision and mission, we are growing and partnering with people who share the vision and values of Honesty; Integrity; and Respect, as well as our commitment to return to a personal, one-on-one relationship between all players and stakeholders in the surgical/cardiovascular realm.

Ranging from quality surgical equipment, to cutting-edge cardiovascular equipment to peerless knowledge and expertise, we ensure that we supply quality solutions at a value that gives all people access to life-saving procedures.

PEOPLE AT THE HEART OF SAVING LIVES HONESTY | INTEGRITY | RESPECT

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GROOTE SCHUUR HOSPITAL

Dräger Dräger is an international leader in the fields of medical and safety technology. Since 1889 Dräger products have protected, supported and saved lives.

This is what drives us: Improving Acute Care As “Your Specialist in Acute Care”, we never stop improving acute care as we support you in advancing clinical outcomes, managing costs, enhancing patient experiences and ensuring staff satisfaction. That’s why we at Dräger have been passionate about developing technologies, products, knowhow and services for acute care that help you achieve your goals for over 130 years.

Active interventions over the past decade have seen a dramatic reduction in new patient waiting times

Our vision for the future of acute care is hospital automation – so that we can improve care for everyone: patients, caretakers and executives alike. As your specialist in acute care, we always strive for improvement. We welcome you to join us in our efforts.

At Dräger, we develop technology for life. Our customers are the basis for our ideas and innovations – the challenges you encounter on a daily basis in the hospital are our inspiration.

But for the CEO, learning should be for everyone. The hospital offers a raft of training programmes including Basic Education for early school leavers, computer literacy, and degrees and diplomas allowing all staff to progress in their fields of work.

“Sustaining a level of expertise requires the hospital to keep up with advances in technology and building the capacity of the staff and managers, so that the hospital maintains its world-renowned status as a leader of innovative healthcare,” Patel comments.

TRANSFORMATION AND BUILDING REFURBISHMENT As well as continual training, it is also important for the hospital to ensure 32 | Africa Outlook issue 84

that its procedures and facilities are as up to date as possible.

Active interventions over the past decade have seen a dramatic reduction in new patient waiting times, as well as lowered consumption of coal and water (which dropped 42 percent and 51 percent respectively between 2010 and 2016).

However, fully refurbishing and upgrading facilities can be difficult for state-funded hospitals such as GSH. For this, they are often reliant on the generosity of private donors. It was through such generosity that the hospital was recently able to upgrade its neo-natal unit. As its maternity centre serves as a referral unit for all complicated obstetric cases, it looks after many premature babies requiring

Improving treatment outcomes, reducing the cost of procedures and increasing the satisfaction of your colleagues and patients: These requirements are what drives us to develop efficient solutions to improve acute care. With protective treatment approaches, care-centred workplaces, smart technologies and comprehensive services, we support you in reducing obstacles in acute care.

Connectivity in the hospital is no longer a dream for the future – it is now reality. Today, we are already offering solutions to streamline clinical work processes and ensure uninterrupted access to patient data. We continue to develop these technologies on an ongoing basis to offer you new, smart applications for greater patient safety and more individualised treatment.

www.draeger.com

GROOTE SCHUUR HOSPITAL intensive care, but, according Patel, the unit was too cramped. Extra space was found, but there were not enough funds for the upgrade.

“Fundraising efforts collected small amounts, but insufficient for the needs of the restructuring. After seven years, our luck turned and a donor from the United Kingdom heard of our pledge and agreed to donate the full amount needed, plus additional amounts for totally new equipment. This donor had a link to the hospital since his grandfather was the very first specialist to perform an anaesthetic at GSH when it opened in 1938,” the CEO explains.

Fully refurbishing and upgrading facilities can be difficult for statefunded hospitals such as GSH

34 | Africa Outlook issue 84

The newly refurbished neo-natal unit now has adequate space for the babies, staff resting areas and teaching facilities. According to the CEO, the quality of care being offered has improved, alongside staff morale.

OVERCOMING CHALLENGES Despite its rich legacy and excellent reputation, the eight decades in which the hospital has been operating have seen many challenges.

Specifically, the 1948 policy of apartheid had implications for medical patients, students, and staff, with segregated wards, salary disparities and

unequal funding. ‘Non-white’ services experienced much greater pressure, while ‘non-white’ staff were denied the career and training opportunities of their white peers. Past students Professor Abdul Wahab Barday and Dr Bhadra Uttam Chavda recall that they were often not allowed to witness post-mortems when a white patient was involved. Even attending medical school was difficult.

“We as ‘Darkie Students’ had to apply to the to the Minister of Education, and also had to obviously apply to the ‘White’ University, UCT,” they explain.

Who We Are AEC-Amersham, is a wholly owned subsidiary of NTP Radioisotopes and provides quality products and services for the Healthcare and Laboratory market segments.

Vision AEC-Amersham aims to be the leading supplier of healthcare products to the African market.

Mission AEC-Amersham is dedicated to making radiopharmaceutical products, laboratory supplies, and quality & safety assurance equipment accessible to the market.

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GROOTE SCHUUR HOSPITAL

Akacia Medical One of the first fully compliant BEE level 2 health care companies in South Africa, Akacia Medical and Healthcare Group is part of a handful of true frontrunners, when it comes to meaningful transformation. We manufacture and supply products that diagnose, treat and monitor patients through our subsidiaries Akacia Medical, Clinisut, and MSQ Diagnostics.

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“WITH THIS IN MIND, TRANSFORMATION AT GROOTE SCHUUR MUST PROMOTE EQUALITY FOR ALL THE CITIZENS THAT ENTER OUR PREMISES... EQUALITY IN THE WAY THAT WE TEACH AND TRAIN OUR STUDENTS...”

“Despite having done our clinical years mostly at GSH, we as black students were not allowed to do the internship at GSH because of the apartheid policy. We had to apply to Somerset or Livingstone Hospital.”

This is not to say that members of staff at the hospital condoned these policies. Chief Medical Superintendent Dr Joce Kane-Berman was temporarily dismissed from her post in 1988 for comments concerning her support of Nelson Mandela and the future of an undivided South Africa.

Patel believes it is important to learn from the past to affect transformation in the future.

“With this in mind, transformation at Groote Schuur must promote equality for all the citizens that enter our premises. Equality in the treatment that we offer; equality in the criteria that we apply; equality in the way that we teach and train our students and, most of all, equality in the mannerism and behaviour that we practise when 36 | Africa Outlook issue 84

doing so,” she explains.

But outside of the hospital, South Africa is still “hugely inequitable”, according to the CEO, making delivering healthcare a challenge.

“The public health care services need to support more than two thirds of a growing population of unemployed, uninsured citizens and immigrants from elsewhere in Africa seeking care. This trend is compounded by an ageing population, a rising burden of infectious and chronic diseases and a global shortage of an adequately skilled workforce,” she explains.

Patel cites a report by Statistics South Africa which states that half of adults over 18 live below the poverty line, unemployment is at 29 percent and 31 percent of households rely solely on social grants. What this means is that over 80 percent of the South African population rely solely on the public health services – hospitals such as GSH, who must balance a demand for care with diminishing resources.

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GROOTE SCHUUR HOSPITAL

COVID-19 PREPAREDNESS PROCEDURES • Getting physical wards ready and managing staff rotations on COVID-19 wards • Staff were risk-assessed and clinical staff divided into multi-disciplinary teams • Nurses were similarly divided into teams, and allocated to the wards as they opened • Ensuring there were always wards available as the amount of cases increased • Patients suspected of having the disease were also isolated in specific wards while waiting for test results • The management team ensured there was adequate PPE for staff, and consumables and linen for patients • The operating theatre was reorganised for operations on COVID-19 patients • As staff started to become ill, relief teams were organised • A wellness team was established to provide counselling and support to staff

However, the CEO remains determinedly optimistic, beginning by asserting that the standard of health service delivery across the Western Cape is relatively stable.

“There will always be challenges, but how one responds to this is determined by the environment we work within. With the government considering the implementation of a National Health Insurance model of care, these are interesting times to be in a space of leadership in healthcare, since what we plan and do now can improve the future of health in the country and better care for our patients,” she says.

THE LATEST CHALLENGE: COVID-19 The newest chapter in the story of Groote Schuur Hospital is that of COVID-19, the global pandemic that has claimed 835,843 lives at the time of writing, and disrupted millions of others.

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38 | Africa Outlook issue 84

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Africa Outlook issue 84 | 39

GROOTE SCHUUR HOSPITAL Following the reports from China, Europe, and the USA, Patel and her team anticipated that the virus would eventually arrive in South Africa. They began to plan for this in February and had de-escalated the hospital’s outpatient department and theatre activities by mid-March. On March 23rd, South

Q: HOW IMPORTANT ARE PARTNER AND SUPPLIER RELATIONSHIPS TO THE SMOOTH RUNNING OF GROOTE SCHUUR? Bhavna Patel: “Supply chain management is very strictly regulated within the public sector and our organisation must comply with all of these requirements. Demand management and the entire supply chain process is under the control of our very firm, no-nonsense Finance Director, Mrs Annelise Bezuidenhout. She ensures that we comply, but at the same time, that all the clinical needs are met.

“While it is important to have a supplier relationship, we also need a transparent system of doing business to ensure fairness. All our procurement is an electronic method of inviting quotes or a formal tender process and we are bound by these regulations.

The only supplier relationship we might have is when we have standardised equipment to one make or where there is a sole supplier.”

40 | Africa Outlook issue 84

Africa went into lockdown. On April 1st, the first coronavirus patient arrived at GSH. And after that it was all hands on deck.

As cases increased, the pandemic took its toll on the staff.

“They had to deal with their own fear; with the fear of infecting their family members, some of whom were susceptible; with many patient deaths – some prolonged, some too quick; with calling family members and only speaking to them on the phone as they could not visit the patient while in hospital; with working in teams; with being totally outside of their comfort zones and needing to adapt to this fairly quickly,” Patel explains.

In response to this, the CEO ensured that staff received counselling and support from an onsite wellness team, and that relief teams were in place when COVID-19 cases rose among the team. She also ensured that she and her fellow management were “leading from the front” – being visible and

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supportive, despite the anxieties they also faced.

Another difficulty was ensuring smooth supply chain management throughout the pandemic; deliveries of PPE and consumables needed to be planned well in advance. According to Patel, this proved challenging as the hospital’s regular suppliers were not

always able to deliver.

“Our relationships held us in good stead. Simple historical factors, such as ensuring that we always paid the supplier within the required timeframe, speaking personally to certain company representatives and bulkordering together with other hospitals assisted us to meet the needs of our

patients and staff,” the CEO explains.

Despite difficulties with supply – and the need to be wary of companies who made promises they couldn’t deliver – GSH managed to stay within the year’s budget.

As well as managing the situation in the hospital, GSH’s expert staff are collaborating with others around the Africa Outlook issue 84 | 41

GROOTE SCHUUR HOSPITAL world to help fight the virus. It is a site of the Solidarity trial, an international clinical trial launched by the World Health Organization and its partners, and many other research collaborations.

GSH has also introduced virtual weekly lectures about COVID-19, which are attended by clinicians across Africa.

The past couple of months have been difficult for GSH. But thanks to its committed staff, visible leadership, resident experts and good supplier relationships, it has never become overwhelmed.

“This has been a challenge, but through a team spirit and the wonderful commitment and dedication of our staff, we hope we have overcome the worst part of the effect of this virus,” Patel says.

LOOKING FORWARD TO THE FUTURE The next chapter in the story of Groote Schuur hospital is all about learning and transformation. Patel wants to look ahead, not only continuing to treat coronavirus patients but being able to cater to this new reality through adaptation of services.

“It most certainly cannot be business as usual and as I have continually told the staff, if we have not learnt any lessons from this COVID experience, then

all the pain and lives lost will have been in vain,” the CEO says.

“We have lost too much not to plan for this new reality. How do we offer our services differently? How do we plan for a ‘whole of society’ approach to health in our country? How do we follow a systems approach to the health of our patients? How do we integrate information technology and

information management to learn and adapt? How do we build resilience within the staff and the organisation?

How do we sustain excellence in healthcare? How do we keep the Groote Schuur Hospital energy alive?”

There are, then, a lot of questions to be answered and challenges to be tackled. According to Patel, these will be addressed slowly, and in a phased manner. In doing so, she hopes to continue to build GSH into a prosperous hospital – one with the resilience and capacity to deal with any challenge that is thrown at it.

With Patel’s passion, the dedication and expertise of her staff, and the rich legacy of Groote Schuur Hospital, we have every reason to believe she will succeed.

GROOTE SCHUUR HOSPITAL Tel: +27 (0) 21 404 2187/8 gshproffice@westerncape.gov.za www.westerncape.gov.za

42 | Africa Outlook issue 84

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POLMED

PROTECTING THE PROTECTORS Inside the story of Polmed, the dedicated closed medical scheme for South Africa’s police officers and their dependents, an organisation that has gone from strength to strength since its establishment in 2000 Writer: Tom Wadlow | Project Manager: Callam Waller Police officers are an integral part of our society. They are the most visible representatives of the government. In our hour of need, danger, crisis, and difficulty – when citizens do not know what to do and whom to approach – police officers are there.”

The peace of mind provided by police is, all too often, taken for granted.

44 | Africa Outlook issue 84

There to uphold the rule of law, protect life and liberty, and ensure we feel safe in our everyday lives, the enormity of the task that stands in front of police services all over the world makes it one of the most pressurised and stressful occupations.

In South Africa this is no different.

The South African Police Service (SAPS) works tirelessly to protect and serve citizens… but who or what

is there to protect them in their hour of need?

The opening words are from Ms Neo Khauoe, the Principal Officer of the South African Police Service Medical Scheme, known as Polmed. Registered in 2000 as a non-profit, closed medical scheme, it provides cost-effective health insurance for those risking their lives to protect the public.

“Police officers are often called to

HEALTHCARE

LEADERSHIP FOCUS

NEO KHAUOE Now serving as the Principal Officer of Polmed, Neo Khauoe began her career in the nursing profession, coupling this expertise with courses in human resources management, theology and executive management, and a Master of Business Administration (MBA) degree.

She carries more than 26 years of healthcare leadership experience. Prior to joining Polmed, she was the Principal Officer of Sizwe Medical Fund, and has also held executive and senior management roles which include being a General Manager, Scheme Executive, Client Relationship Manager and Provider Relations Manager.

“I was driven by love and compassion for people, and I thought nursing would be the perfect opportunity to lend a helping hand,” she says, recalling why she opted to work in healthcare. “My experience of working with the most vulnerable in society is what I still cherish today, and has given me a rich insight into what these people have to go through in life and, more importantly, how they need to be assisted.”

the scene of trouble and therefore are exposed to trauma, both physical and emotional,” Khauoe explains.

“They frequently deal with individuals who are antisocial, antiauthority, angry, violent, emotionally disturbed, manipulative, or under the influence of alcohol and/or drugs.

“Such events and experiences can have serious negative effects on the health and psychological wellbeing of a police officer. That is why they need tremendous support in the form of quality healthcare. We would be doing an injustice to our law enforcement officials if we do not give them adequate health cover which is central to their risk profile, given the challenges they face on a daily basis.

“We want them to focus on carrying out their duties and worry less about the adequacy and cost of their healthcare needs. That is why Polmed was established – to give our police officers the best healthcare available at an affordable cost, and to give them assurance that we will always be there for them in the time of their healthcare needs.”

20 YEARS AND COUNTING As a closed medical scheme, Polmed does not offer cover to the general public, instead provisioning for active, retired and medically boarded police personnel.

However, since inception, its scope has broadened significantly to include: spouses and partners (including multiple spouses); children Africa Outlook issue 84 | 45

POLMED of all ages with disabilities; adult child dependents studying until the age of 25; adult child dependents who are financially dependent on the member, adopted and fostered dependents; parents and parents in-law; widows and widowers; and children of fallen police officers.

This is reflected by an impressive growth in membership. Starting with 235,940 insured lives in 2000, the figure now stands at 507,764, a rise of around 56 percent which makes Polmed the fourth largest medical scheme in South Africa.

It is also refreshingly simple, with just two benefit options – Aquarium and Marine. The former offers basic cost-effective benefits and is designed for the young and healthy, with Marine offering basic and enhanced benefits for older and sickly members.

For Khauoe, a key differentiator of Polmed is its undoubted value for money versus other schemes. “Polmed

46 | Africa Outlook issue 84

remains the most cost-effective medical scheme offering higher insured benefits at lower cost,” she says.

“Polmed is more affordable, even to the Police Trainees who only receive an allowance, thereby increasing access to healthcare to the lowest income earners within the South African Police Service, and more so during their retirement when they need healthcare services the most.”

To give an indication of the value on offer, a Polmed member with two dependents on the Marine option with a basic income between R13,000 and R15,000 pays R1,505 in monthly contributions, where other comparable medical schemes will require payment of anything between R2,318 to R3,611 per month. The same Polmed member enjoys out-of-hospital benefits worth R29,537 per annum, compared to his or her counterparts who are offered anything between R7,870 and R16,652 by their respective medical schemes.

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POLMED

INSIDE THE POLMED BUSINESS MODEL The basic premise of Polmed’s model is to create value for stakeholders without a motivation for profit.

“The success of the scheme’s business model depends on product differentiation, affordability and service excellence. Medical schemes operate in a complex and challenging environment,” says Khauoe.

“BECAUSE OF THE STRESSFUL NATURE OF THEIR JOBS, POLICE OFFICERS ARE PRONE TO BEING VICTIMS OF MENTAL ILLNESS AND OTHER RELATED CONDITIONS” And almost all facets of healthcare are covered, including psychological support, the importance of which often flies under the radar.

“Because of the stressful nature of their jobs, police officers are prone to being victims of mental illness and other related conditions,” Khauoe continues. “Again, Polmed does not want its members to carry this burden on their own. That is why the Scheme offers them rich benefits in the form of ongoing psychological counselling and support, to help them cope and live a normal life.

“For this purpose, Polmed has established a network of highly skilled and registered psychologists and social workers to provide them with the psycho-social support they need, which includes post-trauma and periodic debriefing.

“This is in line with our vision – healthy members for a safer South 48 | Africa Outlook issue 84

Africa – which recognises and acknowledges that our police officers play a crucial role in keeping South Africa safe. However, for them to achieve a safer South Africa for those who live in it, they must be physically and mentally healthy.”

A STANDOUT SCHEME The cost-effectiveness message is just one of three major reasons that, according to Khauoe, stand Polmed apart in the field.

Second is the fact that the scheme boasts some of the lowest nonhealthcare costs in the trade. Indeed, the non-healthcare expenditure ratio has continuously declined over recent years, from 6.55 percent in 2012 to 3.57 percent in 2019. It is now among the lowest in the industry, and far below the 10 percent target prescribed by the Council for Medical Schemes (CMS).

“Trustees have the responsibility of maintaining the fragile balance between competitive contribution rates, cost and sustainability. Risk management tools and refined benefit design techniques are utilised to provide access to quality healthcare while managing the cost and ensuring the sustainability of the scheme.”

There are various elements of the business model in action, the most obvious being contributions income – around 75 percent of contributions come from the employer (SAPS), with the remainder being paid by members.

In terms of paying providers, Polmed mostly follows a mix of fee-for-service model, per diem’, fixed fees and some capitation, while non-healthcare costs refer to expenditure that is not related to the provision of medical care.

Polmed outsources managed care as well as administration functions of the scheme, currently to Medscheme.

GROUP

The AfroCentric Group is a black-owned, investment holding company which is substantially invested in healthcare. AfroCentric was established in 2008 and is listed in the healthcare sector on the JSE. AfroCentric is the largest diversified healthcare company in Southern Africa.

Through our operating subsidiaries, we increase access to sustainable, affordable and quality healthcare by providing health administration, health risk management and a range of complementary solutions across the healthcare value chain to our medical scheme clients and their members. A primary lever in our strategy is to reduce the cost of healthcare by eliminating inefficiency throughout the healthcare value chain.

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OUR BUSINESS OFFERINGS ARE DIVIDED INTO THE FOLLOWING CLUSTERS: Administration and risk management cluster

AfroCentric is involved in the full medicine value chain (from manufacturing to delivery) in order to reduce the cost of medicine expenditure and to ensure that the consumer is able to receive the required medicine swiftly, and with as little additional payments as possible.

The corporate services cluster A Member of AfroCentric Group

This portion of the business enables funders who are involved in the health sector administer and manage their funds.

This includes: a. customer service to the fund members b. financial risk management and actuarial oversight c. managing any fraudulent transactions d. managing and improving the health of the relevant population e. reducing the cost of care.

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This cluster is able to offer a corporate an end-to-end solution to optimise the health of its employees and maximise its health investment and the returns.

This diversified business model and growth strategy enable us to achieve sustainable growth and value creation across the healthcare sector by leveraging our competitive advantages.

POLMED Finally, and no less important, is the financial sustainability of Polmed. As of December 2019, reserves stand at more than 40 percent, way above the CMS standard of 25 percent, although the impact of COVID-19 is yet to be calculated.

It is therefore no surprise that Polmed is in a position to offer a comprehensive level of cover to its members, who are overwhelmingly satisfied with its offering and service (as evidenced by a 91% satisfaction level achieved in the 2020 independent Polmed Member Satisfaction Survey).

This is in no small part thanks to the enormous network of partners and service providers that look after its members, and Khauoe is quick to recognise how vital they are in achieving such high satisfaction ratings.

“Our healthcare providers are an integral part of Polmed’s service delivery mechanisms,” the Principal Officer says. “They are the vehicle through which we deliver services to our members, they are the ones who interact with our members on a daily basis when they need healthcare services.

“They examine, diagnose, treat, educate them on various healthcare matters and provide continual healthcare for those with chronic conditions to improve their quality of life. As such, they are an indispensable element of our value chain, and part of our core business.”

Crucially, costs are fixed for Polmed members, who do not incur unexpected charges when they visit a medical professional, particularly those who are on Polmed Provider Network.

Scriptpharm Another way in which Polmed has been working towards creating value for its members is through its strategic partnership with Scriptpharm.

Scriptpharm, an Afrocentric Health subsidiary, is an accredited and registered managed care organisation focussing on the complete pharmaceutical value chain (chronic, acute, oncology and HIV medicines and consumables).

Its pharmacy network is contracted to numerous medical schemes as either a designated service provider, or through a preferred provider arrangement.

Polmed has been partnering with Scriptpharm for the management of its acute, chronic and HIV medicines since the beginning of 2019. This partnership was further enhanced with an oncology medicine management pilot project that launched in October 2019.

Its partnership with Scriptpharm holds various advantages for Polmed and its members. Through careful value chain optimisation Scriptpharm has already realised significant savings on chronic and oncology medicine claims for the Scheme, with further savings projected over the next two years.

The Scheme has also seen additional savings on acute claims, where the utilisation of the extensive and customised Scriptpharm pharmacy network and lower dispensing fees created value for Polmed members.

A major and very visible benefit to members has been the broader access to pharmacies they now enjoy, thanks to the introduction of Scriptpharm’s extensive pharmacy network. However, the main benefit – albeit far less visible to members – is that the savings made possible through this partnership between the Scheme and Scriptpharm will no doubt have a positive impact on the extent of future member contribution increases.

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50 | Africa Outlook issue 84

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Our core competence lies in providing single-source medical evacuation capabilities in South Africa, where we have an extensive footprint in all nine provinces with our designated service providers.

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“OUR HEALTHCARE PROVIDERS ARE AN INTEGRAL PART OF POLMED’S SERVICE DELIVERY MECHANISMS. THEY ARE THE VEHICLE THROUGH WHICH WE DELIVER SERVICES...”

A careful selection process ensures that only the best partners are selected, be they general practitioners, hospitals, pharmacies, renal dialysis specialists, oncology centres, optical experts, psychologists or emergency medical service providers, all of which make up the Polmed network or designated service providers.

COMBATTING COVID-19 The network has also been responsive to the challenges presented by the coronavirus pandemic.

Indeed, management of these complexities is Polmed’s most significant ongoing project, with several endeavours helping to ensure its members are provided the protection they need.

For instance, the scheme has partnered with Gift for Givers and Wellness Odyssey (Polmed’s wellness service provider) to ensure all members are screened frequently, with high-risk individuals being sent for testing. All screening and testing procedures are covered.

52 | Africa Outlook issue 84

Polmed is also part of the SAPS COVID-19 Steering Committee, a body which meets weekly to assess the coronavirus impact on police officers and devise strategies to help curb the spread of the illness. Further, the Scheme is also working with its network of providers to enable Polmed members to be placed in quarantine and isolation facilities if they cannot self-isolate at home.

Again, these services are fully covered.

“Our police officers have been at the forefront of the battle against COVID19 since the outbreak was announced, thereby facing the daily risks of being infected,” Khauoe says.

“Unfortunately, some of them have contracted the virus and, sadly, some have passed away in the process. These are the realities of COVID-19 and its devastating effects on communities across the world.

However, our fatality rate is much lower than all benchmarks at 0.9 percent of the insured lives who tested posited to COVID-19.”

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POLMED The other key component of the Polmed response has been to educate its members.

Khauoe continues: “The most basic thing to do during a pandemic like this one is to provide accurate information to avoid reliance on fake news and misinformation designed to instil fear, confusion, and anxiety.

“Polmed has been running a robust educational campaign to sensitise SAPS members about COVID-19. Since early March 2020, we have consistently updated members via various media platforms, educating them about COVID-19, and updating them on their available benefits should they contract the virus.

“We are continuously engaging with all the relevant stakeholders, including SAPS management and our healthcare providers to see how best we can assist SAPS members and their dependents during this pandemic, so that they can continue rendering the essential service that the country needs.”

“We have since opened several isolation and quarantine sites across all provinces, specific for Polmed beneficiaries.”

A COORDINATED FUTURE The Principal Officer is also all too aware that the industry is not going to be the same as it was before coronavirus arrived.

Indeed, the pandemic has heightened the urgency for South Africa to strengthen its healthcare system in both public and private spheres, so that it is prepared should another disease outbreak arise.

“As a nation, we also have to look at the World Health Organization’s definition of health as ‘a state of complete physical, mental, and social wellbeing and not merely the absence of disease or infirmity,” she adds.

“This will require us to look at health comprehensively, not just as provision of care. The discussion will begin to look at things like access to water,

Medirite Through their long-standing partnership, Medirite and Polmed offer their member’s accessible and affordable healthcare - including hosting flu vaccination drives in-store.

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Africa Outlook issue 84 | 55

POLMED food, shelter, primary healthcare and ensure that there is a comprehensive programme of action that addresses all the elements that contribute to the wellbeing of South Africans.”

But what of Polmed specifically?

How will the Scheme continue to evolve and deliver greater levels of cover to its deserving members?

THE POLMED NETWORK GENERAL PRACTITIONERS – just under 4,000 all over the country.

HOSPITALS – six hospital groups able to provide services to members across all SA provinces.

PHARMACIES – over 2,200 community pharmacies, retail pharmacies and courier pharmacies.

RENAL DIALYSIS PROVIDERS – various centres across a national footprint.

ONCOLOGY – offering prevention, diagnosis, and treatment of cancers to patients through accredited oncology centres.

SPECIALISTS – more than 2,440 various kinds of specialist medical practitioners.

OPTICAL – consisting of numerous accredited optometrists for the provision of eye care services.

EMERGENCY MEDICAL SERVICES – Polmed has an accredited emergency service provider to attend to members’ medical emergencies.

56 | Africa Outlook issue 84

The priority, at least in the nearterm, is what Khauoe refers to as care coordination. Stated simply, the idea is to avoid duplication of services and value leakage by organising patient care more effectively throughout the network, a process which involves synchronising the delivery of a member’s treatment from multiple

providers and specialists.

Central to these efforts will be the near 4,000 GPs in the Polmed network.

“We need to establish strong partnerships with general practitioners, who are often the first point of entry for our members into the healthcare system,” says Khauoe.

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“We want them to play a central role in providing our members with comprehensive, cost effective and quality primary healthcare services.

“Polmed is therefore embarking on a project to ensure that all our members have their own dedicated general practitioner, or family doctor, instead of consulting various providers, sometimes for the same clinical condition.

“We want to achieve a dispensation where GPs are responsible for coordinating our members’ overall healthcare needs, such as early prevention of diseases by doing preventative screening annually, proper management of chronic diseases to eliminate unnecessary hospital admissions, referral for pathology testing and specialised care.”

Coordinated care is particularly important given the growing number of patients who live with chronic conditions.

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information is critical to effective management of such illnesses, and Polmed is determined to revolve its services around the focal point of GPs, who in turn will refer members to the appropriate specialists across the network.

And it is this network that will need to grow if Polmed is to continue deliv1 8/18/20 ering first-class cover, bringing healthcare delivery as close as possible to Polmed members.

Khauoe reflects this in her concluding remarks as the conversation draws to a close: “Our duty is to ensure that our networks continue to grow and improve,” she says.

“This means growth not only in terms of our reach and accessibility to members, but also in terms of the quality of healthcare services offered, as evidenced by improvement of our members’ overall health and wellbeing.”

POLMED Tel: +27 (0) 12 818 7500 www.polmed.co.za

Africa Outlook issue 84 | 57

8:51 AM

EHEALTH AFRICA & EHA CLINICS

Nigeria’s New Age Healthcare eHealth Africa and EHA Clinics are leveraging the power of technology and information to enable more efficient, targeted provision of vital services across Nigeria, including key support in the fight against COVID-19 Writer: Tom Wadlow | Project Manager: Callam Waller 58 | Africa Outlook issue 84

HEALTHCARE

D

ata is the new oil, the information age, the fourth industrial revolution.

These are all sayings that, even a decade ago, were not staples of conversations. In 2009, for example, there were around 234 million websites that populated the World Wide Web, and around 247 billion emails were sent or received every day.

Fast-forward to the present day, and you cannot avoid data in almost every aspect of home and working life. More than two billion websites now make up the internet, while estimates suggest that more than 347 billion emails will be sent each day by 2023. The past two years alone have seen data centres’ share of global power consumption rise by a factor of four, the process

of simply storing our information now using up well over one percent of the world’s electricity.

In the healthcare sphere, the power of data translates into saving lives, something which Adam Thompson, the Executive Director of eHealth Africa and CEO of EHA Clinics, has been pioneering in Nigeria for more than 10 years.

Africa Outlook issue 84 | 59

EHEALTH AFRICA & EHA CLINICS

Adam Thompson, CEO

ABOUT EHEALTH AFRICA Established in 2009, eHealth Africa’s work centres around building stronger health systems in Nigeria and the wider region, with a particular focus on bringing healthcare to underserved communities through leveraging the power of technology, enabling providers to make data-driven decisions.

Today it has offices in Nigeria, Sierra Leone, Germany and the United States, its projects reaching many countries, including Chad, Cameroon, the Democratic Republic of Congo and Niger, among others. For example, its team manages the Nigeria-wide Ebola response projects for the US Centers for Disease Control and Prevention in the Ebola-affected African hot zone.

To discover more about eHealth Africa’s reach and impact, explore the latest Annual Impact Report.

60 | Africa Outlook issue 84

It is an unlikely journey from Santa Cruz and the University of California, but one which has resulted in the creation of a truly life-changing business for many thousands of Nigerian and other African citizens.

“This all stemmed from my university work with fellow co-founder Evelyn Castle,” Thompson recalls. “We were looking at how data and new technologies can improve the way that public health services are delivered, chiefly through giving them more information.

“We launched with that initial framework and developed solutions such as medical records systems so providers could access more real-time data and, ultimately, make better and faster decisions. The initial impact was substantial as it immediately removed the need to delve through piles of paper records, plus we could refer patients, for example pregnant women, before any complications, as the information was there and in real time.”

The mission of eHealth Africa, put simply, is to build stronger health systems through the design and implementation of data-driven solutions that respond to local needs, and provide underserved communities with tools to lead healthier lives.

Founded as a small-scale operation in 2009, the organisation has swelled to a team of 500 skilled personnel all over the country, eHealth Africa now building systems for other health agencies and conducting programmes which cover the full spectrum of wellness, from HIV treatment to advice on nutrition.

PLUGGING THE GAP In 2018, Thompson and eHealth Africa broadened their horizons by setting up EHA Clinics, a new venture whose formation was partly a result of trying to improve the welfare of their own staff.

Such was the size and scale of the firm in 2018, the cost of insuring its several hundred employees led Thompson

Beacon Consulting Ltd For over five years, Beacon Consulting has supported eHealth Africa’s programme implementation through the provision of robust enterprise security risk management and intelligence services in security challenged environments in Nigeria (including the inaccessible locations in the north), Chad, DRC, South Sudan, Cameroon, and Niger.

Security-challenged communities are the most vulnerable and are often neglected. We enable eHealth Africa to fill this gap by managing risks and supporting a flexible and resilient security. We take pride in the 100 percent success rate we have had with eHealth Africa in over five years (zero casualties to eHealth Africa assets).

The diversity of eHealth Africa over 500 staff and varied project locations brought to the fore the importance of having a diverse and inclusive workforce. We have learned that embracing diversity can help us thrive in different locations, and can result in better problem-solving for our team.

“Beacon Consulting has been at the forefront of ensuring safe operations for eHealth Africa, across Nigeria, for over five years. The company provides eHealth Africa with holistic security risk management and advisory services, specifically in areas of physical security, terrorism, communal conflicts, political instability, and transportation safety.

Over the years, Beacon Consulting’s expertise and guidance has enabled eHealth Africa to build resilience and allow its operations, interventions, and core activities to continue smoothly in complex environments.

The partnership has been successful, with a 99 percent satisfaction score for Beacon Consulting’s commitment to the safety and security of eHealth Africa’s personnel and assets” – Adam Thompson & Evelyn Castle EDs/Co-Founders, eHealth Africa We look forward to continued success with eHealth Africa and other organisations looking to safely and securely execute projects across Africa.

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EHEALTH AFRICA & EHA CLINICS

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Our prefabricated building types are designed to meet diverse building functions fit for purpose and with passion, focus, commitment, we have successfully completed numerous projects in and across Nigeria.

As a company with a desire of total localisation of the technologies, we have actively invested in local content development and with a firm resolve to local industry development of the Nigerian dream.

Karmod Nigeria will be glad to partner with you in delivering convenient buildings tailored to meet huge housing benefits and solutions.

EHA CLINICS – KEY SERVICES • Comprehensive care • In-house pharmacy • Mobile pharmacy • Onsite lab • Urgent care • Pediatric primary care • Telehealth service • Telespecialist consultation • Homecare service • Emergency evacuation services • Dental care • Eye care • 24/7 call center • Minor procedures • COVID-19 testing and treatment

62 | Africa Outlook issue 84

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and his team to investigate what provision their investment was actually delivering for staff and their families.

Their conclusion was that there were some serious gaps to be filled, and that they could do something about it.

The CEO adds: “We wanted to improve the picture and address poorly equipped facilities and a lack of quality management systems and training. The benchmark was creating a model that we would be happy for our employees to go to for good quality treatment.

“The pilot therefore centred around primary care for our own people in a bid to build a proof of concept that could be rolled out in the private sector. We received a lot of external demand to access the same services our staff were receiving, and it has grown from there.”

Today there are three EHA Clinics that serve as a one-stop shop for consultation, diagnosis and pharmacy services backed up by onsite labs, underpinned by sophisticated

technology that enables the safe and secure flow of patient data to enable providers to make the right medical decisions – the exact reason why eHealth was set up in the first place.

Thompson outlines ambitious plans to expand the number of clinics in existing and new Nigerian cities, while also looking into more specialist centres (for emergencies or cancer treatment, for instance) located in areas where they are needed the most.

“We’re also looking at options and seeking investment to build a larger hospital-scale facility that can cater for a wide spectrum of treatments,” Thompson says.

“At the other end of the scale, we’re looking at how to bring healthcare closer to people. So, as well as these large facilities, we want to set up smaller, almost retail-like outlets in key locations with a large footfall to capture those who would go to a pharmacy, where they may in fact need more specialist help.”

HEALTHCARE

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Africa Outlook issue 84 | 63

EHEALTH AFRICA & EHA CLINICS RISING TO A NEW CHALLENGE Other ways of delivering healthcare closer to the patient include recently launched telehealth and homecare services, capabilities which have proven invaluable this year amid the global coronavirus pandemic.

Like many businesses, EHA Clinics was forced to adapt quickly. In rapid time the firm established dedicated clinics and COVID-19 diagnostics labs in two Nigerian cities, sites which are able to provide a test result within 24 hours, helping to plug the gap in testing capacity which has hampered the country’s efforts to trace the progress of the virus.

“We also faced a challenge in patient confidence about receiving treatment not just for coronavirus, but other health issues,” Thompson adds. “In March the number of people visiting us dropped to about 30 percent of what we would usually see in many facilities.

There was some hesitancy among both patients and medical staff about coming into clinics in the early stages when we didn’t know too much about the virus.

“However, we got our team together and focused very quickly in order to respond to the emergency, and by April our numbers had recovered as we had reassured them it was safe to visit us.

Codix Pharma Codix is a fast-growing pharmaceutical company, headquartered in Nigeria with offices in the UK, Ghana, and Sierra Leone. With its brand pillars hinged on people, innovation, and health service development, the company has collaborated with the public sector in Nigeria to develop guidelines for the management of diabetes and equipped PHCs with NCD clinics.

The company’s passion for innovation and development of the health service led to its partnership with renowned global diagnostics manufacturers (OSANG Healthcare, SD Biosensor, Micobiomed, and Hubdic), and was first to market with the complete solution for Coronavirus diagnostics which comprises of fluorescent immunoassay detection, antigen and antibody rapid diagnostic detection kits and PCR reagent in partnership with SD Biosensor.

Codix remains committed to advancing the Nigerian pharmaceutical sector through local manufacturing starting with blood glucose meters and strips by 2021, which would be first of its kind in Sub-Saharan African continent.

There are also plans to commence RDT manufacturing thereafter in the medium term.

“Across all of our activities, we rely on close relationships with our suppliers and partners” 64 | Africa Outlook issue 84

Further, we have been treating people with mild COVID-19 symptoms at home through our homecare service, as well as more serious cases on-site.”

The extraordinary circumstances created by the pandemic has highlighted the paramount importance of a robust training and development programme, the CEO quick to highlight how critical this has been in not only adapting to the ‘new normal’, but more generally in the development of eHealth Africa and EHA Clinics into what it is today.

With plans for West African expansion, Codix will establish its presence through partnerships in all five English speaking West African countries (Gambia and Liberia in addition to Nigeria, Ghana and Sierra Leone) by the end of the year 2021, and expansion to other parts of West Africa (French speaking countries of the region) by the end of year 2030.

All the above and more, makes Codix a good fit for strategic partnerships such as has been established with e-Health Africa Clinics for over three years, in developing primary healthcare service within sub-urban areas, and accommodating the underserved population as well in Nigeria.

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Part of the group’s Chief Innovation Officer’s remit is to identify gaps in knowledge and help develop learning goals for various teams across the organisation, goals which fall in line with plans for growth.

“A good example of this in action has been our training programme on ultrasound,” Thompson says.

“We are at the forefront in terms of using ultrasound as a point of care diagnostic tool, which has involved taking a lot of learnings from how it is done in the US to here in Nigeria.

“We wanted to jump on that and get ahead of the curve, so we’re able to swap a stethoscope for an ultrasound probe that can instantly provide a lot more detailed information on breathing, lung functions, heart functions, internal bleeding, and a whole host of other things.

“This is just one of many programmes tailored towards staff groups, all of which are tracked on an internal platform.”

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The CEO also points to the critical role played by international and local partners in delivering training to eHealth Africa and EHA Clinics’ employees, be they NGOs or multinational corporations.

“Across all of our activities, we rely on close relationships with our suppliers and partners,” Thompson continues. “Whether it’s helping us to troubleshoot issues, supplying equipment or even helping our teams with research, we have a number of vital collaborations.”

Indeed, such collaboration will be crucial in the months and years ahead as Nigeria continues to tackle the health and socioeconomic challenges caused by the COVID-19 outbreak.

In the immediate term, overcoming the barriers presented by the crisis is the priority for Thompson, who is determined to contribute as much as he can to the nation’s ongoing effort to contain the virus before returning to

info@codixpharma.com

something closer to business as usual.

He concludes optimistically: “We have certainly been challenged

by COVID-19 this year, but we are confident about the future. It is a lot more difficult right now to access capital, and that is what we need to enable our growth to continue.

“However, I’m proud of how we have responded and feel fortunate that we have been able to create new services and replace some of our lost income during this time. The key for the whole sector is to get investors back into Nigeria and supporting some of the great startups that are here.”

EHEALTH AFRICA & EHA CLINICS Tel: +234 (0) 800 342 254 6427 info@eha.ng www.eha.ng

Africa Outlook issue 84 | 65

SERENGETI BREWERIES (SBL)

THE PRIDE OF TANZANIA Serengeti Breweries continues to produce and distribute market leading beers and spirits across Tanzania providing opportunities to invest in people and planet Writer: Tom Wadlow | Project Manager: Donovan Smith

66 | Africa Outlook issue 84

FOOD & DRINK

O

SBL Dar es Salaam brewery capacity expansion project

f all the alcoholic beverages in the world, beer, it is safe to say, has truly stood the test of time.

It is the oldest recorded recipe in the world, the Ancient Egyptians documenting brews with ingredients such as dates, pomegranates and indigenous herbs around 5,000 BC. Harsh sounding by today’s standards, these ancient beer recipes have evolved into what is now a metropolis of variety accentuated by the rise of breweries and brands the world over.

From porters and pilsners to wheat and rye, it is arguably the most diverse beverage category of modern times.

And while beer’s origins can be traced back to Africa, the continent today is home to many thriving beverage markets, including Tanzania.

“Tanzania has enjoyed good sustained economic growth for over 15 years, averaging over seven percent annual GDP increases along with a high population growth rate,” comments Mark Ocitti, Managing Director of leading Tanzanian brewer and beverage distributor Serengeti Breweries Limited (SBL).

“The country has also undertaken major reforms to improve the business environment. All these have contributed to the expansion of the country’s alcohol market over the years, with beer companies becoming among the leading taxpayers in the country.

“We are optimistic that Tanzania’s business environment will continue to improve even further once the government fully implements its blueprint, which entails undertaking a number of policy reforms around taxation, bureaucracy and other nontariff barriers to trade.”

If a company is well-placed to comment on the health of Tanzania’s beverage industry, it is SBL. Incorporated in 1988 as Associated Breweries, it stands today as a major player in the beer industry of the country, its brands (which also include spirits) are readily available nationwide.

Africa Outlook issue 84 | 67

GEA is one of the largest technology suppliers for food processing and a wide range of other industries. The global group focuses on technologies, components and sustainable solutions for sophisticated production processes in diverse end-user markets.

Our applications – in touch with GEA every day Our customers are at the heart of everything we do, and we build strong partnerships with them. We provide individual and sustainable solutions for a wide range of customer-specific applications.

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GEA Africa (PTY) Ltd. directly represents the full GEA portfolio throughout southern and eastern Africa.

The GEA Africa sales cluster highlighted together with our branch offices. With our Angolan office now well established, our next office is planned for Ethiopia.

The beverage market is experiencing dynamic growth worldwide and there is an increasing variety of new products to meet demand, from fruit juices, even with natural bits, to isotonic and health drinks. GEA is a leader in providing the technological and technical expertise to help producers, brewers and wine makers to quench the global thirst for beverages.

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SERENGETI BREWERIES (SBL) The year 2002 saw the change in name to SBL. In 2010 Diageo, under its East Africa Breweries Limited business, bought a majority stake in the organisation.

“This acquisition prompted increased investment in international quality standards, leading to increased job opportunities for the people of

SBL’S BEERS Among SBL’s beer brands are: SERENGETI PREMIUM LITE: The newest addition to the Serengeti trademark family.

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Tanzania and more revenue contribution to the government,” Ocitti adds.

“The company currently employs over 700 staff both directly and indirectly.

Further, we source 70 percent of our beer raw materials from a network of 400 local farmers – growers of barley, sorghum and maize.”

Such produce makes its way to one of three SBL breweries in Tanzania, located in Dar es Salaam, Mwanza and Moshi. Here the company brews all its beers including Serengeti Lite, which was recently recognised with a Superbrand Award and is testament to the quality that Tanzania is able to produce.

This is where John Wanyancha, Corporate Relations Director, joins the conversation.

Immediately asked whether he enjoys a beer, and if he has a preferred tipple, he responds: “Yes I do, and my favourite beer brand is Serengeti Premium Lager, the first local Tanzanian beer brand to be made of 100 percent malt.

“Serengeti Premium Lager is the flagship brand for Serengeti Breweries, first brewed in 1996. A multiple Gold winner of the International Monde Selection Award, it is a combination of local heritage and craftmanship – brewed by a truly Tanzanian brew master.

“Just like or national park, Serengeti Premium Lager is the Pride of Tanzania and celebrates our country and the diversity of our people.

Serengeti Premium Lager is also the Proud Sponsor of the Taifa Stars, the Tanzanian national football team.”

RISING TO THE CHALLENGE As well as its own beers, SBL houses other leading beers such as Pilsner Lager, Tusker Lager, Kibo Gold, and Guinness stout. Owing to its association with Diageo, the company is also home to some of the world’s most renowned spirits such as Johnnie Walker whisky, Smirnoff Vodka, Gordon’s gin, Captain Morgan rum and Baileys Irish cream.

PILSNER KING: A variant of Pilsner Lager that is brewed through a unique process that involves filtering, giving it a superior liquid clarity and authentic taste that serves to bring a refreshing reward to its consumers.

KIBO GOLD: Re-introduced into Tanzania in June 2012. It is produced in SBL’s Moshi brewery and widely distributed throughout the northern parts of Tanzania in key regions including Kilimanjaro, Arusha, Tanga and Manyara.

OTHER BEERS: Guinness, Tusker, and Senator SBL new corporate logo launch event in Dar es Salaam on October 2019 70 | Africa Outlook issue 84

GEA Africa (Pty) LTD GEA is one of the largest suppliers of processing equipment in the beverage industry, providing the technology expertise required to help beverage producers quench the global thirst. As a leading international technology group, GEA focusses on process technology and components for sophisticated production processes in various markets, supplying smart solutions to our customers.

GEA Southern and Eastern Africa boasts a staff compliment of 300 people servicing the Sub-Saharan market with branches in South Africa, Namibia, Angola, Kenya and Tanzania. We have a team of experience field service engineers and specialists that is never far away, wherever you are in our region, 24 hours a day, 365 days a year.

At GEA Africa we draw on global expertise to offer our customers the very latest technologies in equipment supply, providing solutions tailored to their specific needs: Equipment for your needs in the beverage industry, dairy farming and milking, refrigeration technologies, food processing and packaging, as well as many non-food markets like pharmaceutical, personal care, pulp and chemical.

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SERENGETI BREWERIES (SBL)

Hypro Group Hypro is an India-based company from Pune which offers turnkey solutions for brewing, CO2 recovery and allied solutions for the hygienic process industry.

The firm’s products are designed, manufactured and tested as per requirements of international codes and standards. The products come with CE marking or U Stamp (ASME) as per customer requirement.

Established in 1999 as a startup, Hypro has progressed steadily over years. Its infrastructure is fortified with futuristic technologies, process delivery systems and machinery to command supremacy over the field of operation.

Serengeti Breweries Limited (SBL) Corporate Relations Director, John Wanyancha (Left) hands over part of 1,250 litres of hand sanitiser to the Minister for Health Community Development, Gender, Elderly and Children, Ummy This sustained portfolio growth since global beverage giant Diageo invested in 2010 has helped SBL remain relevant in a market whose consumers are adopting everchanging tastes.

However, opportunities to explore different beers and spirits have been drastically limited throughout much of 2020, not least because the COVID-19 pandemic has caused the closure of many bars and social venues where alcohol is dispensed.

“Coronavirus has negatively impacted the alcohol industry in many ways,” Wanyancha says. “As a result of its required prevention measures, which include social distancing, customers can no longer congregate in large numbers in bars and other forms of outlets, thereby restricting sales volumes.

“As a result of this requirement, our company has been forced to change its ways of working and placing substantial investment into provision of safety equipment for those working 72 | Africa Outlook issue 84

in production facilities and executing sales and other field activities.”

Despite the obvious and immediate disruption, SBL stood up to the challenge and thrust itself into the national fight against the virus.

Ocitti adds: “Upon confirmation of the first case of COVID-19 in Tanzania in March this year, SBL quickly came forward to partner with the government in a countrywide awareness creation exercise.

“We helped the Ministry of Health deliver posters and COVID-19 information leaflets to every regional headquarters countrywide. This was followed in April by donating sanitisers in Dar es Salaam, for distribution to the wider Tanzanian community.

“We are delighted that this joint response to the pandemic by both government and private stakeholders has yielded positive results, and the country was recently endorsed by, among others, the World Travel and Tourism Council.”

Hypro conceptualises, develops, manufactures, installs and commissions a wide range of products, the company commanding a presence in four continents and 14 countries across the globe.

Its specialised teams of engineers and industry experts possess an in-depth knowledge to offer appropriate customised solutions to customers.

From industrial breweries to liquid processing facilities and CO2 recovery plants, Hypro is able to provide turnkey solutions tailored to client needs.

“With focus on constant improvement and proficient aftersales support, we have earned our reputation in the market. We are constantly finding solutions to minimise the carbon footprint of your system, thanks to our energy recovery solutions. We will be happy to assist you for your requirements – feel free to get in touch with our team.”

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Hypro Group is an International Standard Hygienic Process Equipment Manufacturing Company based in India. We conceptualize, develop, manufacture and install a wide range of products for Industrial Breweries, Industrial Craft Breweries, Microbreweries, Pharma/Liquid Processing Industry, Beverage Industry and CO2 Recovery Plants for Industrial & Craft Breweries across the globe.

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SERENGETI BREWERIES (SBL) Indeed, the challenges presented by the coronavirus outbreak have had an impact on SBL’s own growth ambitions, but the company continues to invest in view of brighter future.

In 2020, the company concluded a £10 million expansion of its brewery in Dar es Salaam, a vital addition of capacity which will enable it to cater to increasing demands for its products.

At the site in Moshi, nestled in the northeastern region of Tanzania, SBL is currently expanding its production facilities in an investment worth £4.5 million, with the third brewery

in Mwanza (on the shore of Lake Victoria) also set for expansion.

The result of this phased growth plan, as well as the much-needed capacity gain, will generate socioeconomic development in these areas through the creation of additional job opportunities and additional business for raw materials suppliers.

Indeed, the Managing Director is quick to point out the vital role that farmers and other suppliers play in SBL’s ongoing operations.

“SBL’s value chain comprises of

SBL MD Mark Ocitti (left) and Minister of Industry and Trade, Innocent Bashungwa during the new corporate logo launch event 74 | Africa Outlook issue 84

many players,” Ocitti says. “From upstream, the company sources grain from over 400 farmers located across eight regions. The grain, which include barley, maize and sorghum, are transported by third parties into SBL and other offsite facilities for storage and primary processing. SBL also sources many other ingredients from local and overseas suppliers that go into beer production.

“Downstream, SBL partners with hundreds of distributors and transporters to deliver its products to every corner of the country

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ABM Ltd In 2014 ABM commissioned its first spirit blending plant or ‘Cube’ in Ghana, Africa.

Since then Cubes have been installed in Nigeria, Angola, Mozambique, Cameroon and we are currently underway with our next planned installation in Tanzania.

The ‘Cube’ concept was initiated to find a methodology offsetting ‘traditional’ costs of setting up a manufacturing site by designing an easily deployable containerised solution that can be as readily relocated as business needs change, at an initial investment of less than 50 percent of the cost of the ‘traditional’ plant.

SBL MD Mark Ocitti (sitting centre) in a group photo with management of Kilacha Agriculture and Livestock Training Center and students who are beneficiries of Kilimo Viwanda Agro-scholarship program in Feb 2020

In 2014 ABM was delighted to receive Diageo’s prestigious ‘Engineering for Innovation’ award for this work.

where, again, the company relies on thousands of outlets to get its product to the consumers.”

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INVESTING IN PEOPLE AND PLANET This comprehensive network spread across the length and breadth of Tanzania is central to SBL’s ambition to become the best performing, most trusted and respected consumer products company in the country.

Wanyancha cites its scale, geographical footprint and innate desire to continuously improve as indicators that the business is already well-placed to reach this objective.

“For this reason, SBL is continuously investing on empowering its staff through regular training, providing them with the best work environment and investing on modernising our operational processes,” he says proudly.

“Serengeti Breweries is an employer of choice in Tanzania’s job market due to its competitive employment terms.

The company offers a six-month maternity leave to female employees compared to the three-month 76 | Africa Outlook issue 84

statutory leave.

“Further, we have a graduate programme that nurtures and develops budding employees to higher roles in the organisation. We also run a women empowerment and mentorship initiative known as Spirited Women, that enables female employees to grow their careers into senior leadership positions.”

As well its own people, SBL is channeling more investment into social projects and environmental preservation activities.

It functions in the belief that its business cannot thrive outside of the wellbeing of the communities in which it operates, be they farmers or local Tanzanians who consume the various products.

For example, SBL runs a programme to develop and empower its 400 supplier farmers, growers of sorghum, barley and maize which are spread through eight different regions.

Another education-driven initiative takes the form of a scholarship scheme that provides 40 fully-funded agri-related qualifications for local students every year, the aim being to

Swivel Marketing Established in 2011, Swivel Marketing is a Tanzanian agency with presence across African nations, including Ghana, Nigeria, the DRC, Ethiopia, Kenya, Uganda and Zambia.

Its mission is simple – to create digitally infused experiences that power consumer conversations – and this is exactly how it helps Serengeti Breweries to promote several of its brands, from Guinness and Pilsner King to Tusker and Serengeti’s own brews.

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Africa Outlook issue 84 | 77

SERENGETI BREWERIES (SBL) build further technical competencies among its farming network.

Another critical aspect of community wellbeing is road safety.

Here, SBL reaches out to thousands of its customers and the general public including drivers, college students, bodaboda riders (motorcyclists), bus drivers and pedestrians with don’t drink and drive messages. This, according to the Tanzanian police, has contributed to improving road safety.

SBL also recognises the need to safeguard the environment and natural resources, especially water, this being the second major component of its CSR strategy.

Not only does the company plant thousands of trees each year to conserve water catchment areas, it also drives Diageo’s Water of Life scheme in Tanzania.

“Since 2010, SBL has undertaken 18 water projects across the country, benefitting over 300,000 Tanzanians by providing them with free, clean and safe water,” Ocitti says.

Diageo’s strong record in water stewardship and the Water of Life programme has brought water and sanitation to around 10 million people in 18 countries over the last

SBL’S SPIRITS Among the SBL spirits portfolio are: • Johnnie Walker blended scotch whisky • Baileys Original Irish cream • Smirnoff • Richot brandy • J&B blended scotch whisky • Black and White • Gilbeys • Ciroc Vodka • Captain Morgan Gold

78 | Africa Outlook issue 84

A police officer taking part to educate motorbike riders on Don’t Drink and Drive, a campaign by SBL 10 years. The aim is for the Water for Life initiative to be self-funded by local Diageo businesses, rather than being supported from the company head office, and SBL has been a keen contributor.

Further, in 2015 Diageo and SBL implemented the Alliance for Water Stewardship (AWS) Standard at their Moshi brewery. AWS is a global partnership dedicated to promoting the responsible use of freshwater, through a water stewardship system that drives and recognises improved water management practices.

Such endeavours will not only help to make SBL’s operations more environmentally friendly, but also more economical, a trend which will enable it to build on the success already achieved since setting up in 1988.

Renowned for supplying quality to the market, it is very much this message that the Managing Director presents when looking ahead to the future of the company and the next chapter in its exciting development.

Ocitti concludes the conversation optimistically: “Going forward, SBL remains committed to meeting the

changing consumer tastes through innovation. Innovation and quality remain at the heart of our business.

“We have and will continue to consistently introduce new products into our portfolio to meet the emerging tastes and needs of our customers. This will happen hand in hand with a strong focus on quality as key to all SBL activities. We believe this is the reason that all our beer and spirit brands have won different awards locally and internationally. The Superbrand Award for Serengeti Lite, for instance, is one of the many brand quality recognitions we have.

“We want to reassure our customers and other business stakeholders that SBL remains determined to continue producing high quality products in line with international standards.”

SERENGETI BREWERIES (SBL) Tel: +255 784 104 100 www.eabl.com

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Africa Outlook issue 84 | 79

NATIONAL ALCOHOL & LIQUOR FACTORY

The

SPIRIT of Ethiopia Ethiopia’s National Alcohol & Liquor Factory has been producing alcohol since 1906, combining this historical legacy with a drive towards modernisation Writer: Dani Redd | Project Manager: Ryan Gray

80 | Africa Outlook issue 84

FOOD & DRINK

G

in is a distilled alcoholic drink that derives its predominant flavour from juniper berries.

It originated as a medicinal liquor produced by Italian monks, and soon became an object of commerce in the spirits industry.

Gin became widespread in the UK after William of Orange’s Glorious Revolution in 1688, and subsequent import restrictions on French brandy.

By the 1730s, more than 10 million gallons of gin were being distilled annually in London – it was made at factories and at home in bathtubs, hawked by pedlars and given as substitutes for wages. The population was so gin-crazed that parliament had to pass five major legislative acts to prohibit production and consumption.

Gin travelled to lands prone to malarial infections with British soldiers and colonists, and soon became the drink of choice to mask the bitter flavour of the anti-malarial quinine.

Indeed, fast forward to the present day and this medicinal elixir has evolved to the delicious gin and tonic we know and love. Gin is undergoing a renaissance, with new craft brands skilfully blending interesting new herbal and floral botanicals. And this popularity isn’t just restricted to European countries like the UK and Holland.

“My favourite liquor is Baro’s Dry Gin,” says Mesfin Abate Woldesenbet, CEO of Ethiopia’s National Alcohol & Liquor Factory (NALF). “The quality of gin we are producing is equal to the international standard, with a reasonable price – many customers in Ethiopia prefer it to drink.”

Mesfin joined NALF in 2008, following a career at Tabor Ceramics sh.

Co. where he worked as Production and Technical Operation Sector Manager, and Finchaa Sugar Factory where he worked as Ethanol Plant Head.

“When I joined NALF as Mekanissa Branch Factory Manager I was faced with a big challenge,” he recalls.

“The factory’s machinery was old

and the technology in place was not compatible with current factories. This made it difficult to compete with the newly emergent liquor industries in Ethiopia.

“Productivity was declining and the Mekanissa factory was only reaching 40 percent of capacity utilisation – the responsibility to rehabilitate the plants and regain the lost market share was on the shoulders of top management.”

The now-CEO relished the challenge. He has made it his task to ensure the success of the factory, transforming the organisation in every aspect from capacity to technology; from human resource development to different systems implementation.

Mesfin Abate Woldesenbet, CEO of Ethiopia’s National Alcohol & Liquor Factory (NALF) reveals his favourite tiple is Baro’s Dry Gin

A PROMINENT PRESENCE According to the CEO, Ethiopia’s liquor industry is growing at an exponential rate. Up until 1995, NALF was the only factory in the country making pure alcohol for liquor production, but now there are many such production lines. But in an increasingly competitive sector, NALF stands out.

Africa Outlook issue 84 | 81

NATIONAL ALCOHOL & LIQUOR FACTORY

Head office building

National Alcohol & Liquor Factory is a state-owned business organisation, which has been pioneering alcohol production in Ethiopia since its Sebeta branch factory was established in 1906.

It currently has two facilities and produces extra neutral alcohol (ENA) used in liquor production, laboratory work, and medicine production; denatured alcohol for clinical purposes, used in beauty salons and cleaning equipment; and its own brand liquors. These include Baro’s Dry Gin, Vodka, Ouzo and Coffee Liqueur.

NALF’s Mekanissa factory distillery plant produces 18,000 litres of ENA per day, while its Sebeta branch produces 12,000 litres. NALF’s overall annual designed production capacity is 10,950,000 litres and nine million litre attainable capacity.

Over the 2019/20 budget year, NALF produced 5,260,413 litres of ENA, 12,999,193 litres of various liquors, 128,845 litres of hand sanitiser and 522,268 litres of denatured alcohol. This performance data shows a deviation from the factory’s attainable capacity. According to the CEO, this is in large part due to local input shortage of ingredients such as molasses and technical alcohol.

NALF employs around 1,070 82 | Africa Outlook issue 84

NALF BY NUMBERS 5,260,413 – LITRES OF ENA PRODUCED IN 2019/20

12,999,193 – LITRES OF DIFFERENT LIQUORS PRODUCED IN 2019/20

$28.49mn – 2018/2019 CALCULATED ANNUAL REVENUE

30,000

LITRES ENA PER DAY – DAILY OVERALL PRODUCTION CAPACITY

1,070

– NUMBER OF EMPLOYEES

2

– NUMBER OF FACTORIES

workers in permanent, temporary and contract positions, and through outsourced activities such as unloading, cleaning and security.

Its clients are both regional and foreign agents, groceries, hotels and restaurants.

“National Alcohol & Liquor Factory occupies a pioneering status, signalling a major breakthrough in the onset of beverage industrialisation in Ethiopia over the last century,” the CEO says.

NALF currently has its own brand liquors including Baro’s Dry Gin, Vodka, Ouzo and Coffee Liqueur

NATIONAL ALCOHOL & LIQUOR FACTORY

Community Coble stone road around Mekanissa

New distillery at Mekanissa

THE NEED TO MODERNISE Over the years, the factory has improved its manufacturing technologies and production capacity, while being reliant on old machinery.

But a few years ago, it became apparent that the demand for liquor products in Ethiopia outweighed the supply.

“The factory’s management decided to conduct a market and feasibility study. The study clearly indicated the growth of demand for liquor products over the upcoming years, and that producing these liquors is highly feasible. The feasibility study also showed the existence of growing demand for Ethiopian liquor products abroad,” Mesfin says.

84 | Africa Outlook issue 84

New warehouse

Waste treatment plant

“...THE EXPANSION, IN ADDITION TO THE REHABILITATION, INCREASED THE PRODUCTION CAPACITY OF THE FACTORY TO MORE THAN FOUR TIMES THE PREVIOUS CAPACITY”

Many Ethiopians – especially those who live in rural areas – partake of traditional drinks such as tej, a honey wine flavoured with gesho twigs.

But according to the CEO, there is an increasing appetite for beer, spirits, soft drinks and bottled water across the country.

In order to keep up with demand, NALF needed to modernise and improve capacity.

“The factory, then, started to implement expansion and rehabilitation of its old and downsized plant machinery. The expansion, in addition to the rehabilitation, increased the production capacity of the factory to more than four times the previous capacity,” he says.

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RILLI srl is a company specialising in the design and construction of new distilleries, expansion and/or optimisation of current distilleries using its know-how, experience and technology.

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Working all over the world our company had direct experience processing any kind of feedstock as wine by-products, molasses, fruits, wheat, maize, barley to obtain bio-fuel, extra neutral alcohol and any other kind of distillate.

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NATIONAL ALCOHOL & LIQUOR FACTORY “For example, the factory has erected a new distillery plant at Sebeta with a production capacity of 12,000 litres of ENA per day, where previously it was only 2,000 litres per day.”

A CARING COMPANY NALF’s awareness of market demand and willingness to meet it by continually modernising machinery is one of the things that stand it apart.

Another factor that distinguishes it from the competition is its customerfocussed care. NALF aims to fully satisfy its customers’ needs and expectations, while also enhancing the wellbeing of society.

According to the CEO, NALF supports several governmental organisations and NGOs. One of these is Mekedonia, a local NGO focussed on improving the lives of the elderly and those with mental health through provision of shelter, food, clothes, medicine and education. It has undertaken vital construction projects, such as building toilets and showers for a community in Lideta Sub City, woreda 10. Meanwhile, it also supports the communities adjacent to its factories by providing food and edible oil.

NALF extends this ethos of care and compassion to stakeholders, employees and suppliers.

Tastepoint Supporting the growth of the alcohol industry in Ethiopia, Frutarom has succeeded in leading the alcoholic beverage market with the largest manufactures of alcohol, our partner NALF. The unique combination of market needs and customer requirements together with Frutarom’s local approach and innovative flavors has made it possible for our customer’s products to become market leaders.

Following its acquisition by IFF, Frutarom is converting to Tastepoint brand but retains the existing flavour portfolio plus additional technologies.

Tastepoint by IFF is focused on servicing local partners with its “can-do” approach.

We can be reached via Esti Keren & Itpa .

www.Tastepoint.com

Community policing centre around Mekanissa “We have a very good relationship with all our partners and arrange discussion forums periodically,” Mesfin explains.

The CEO is acutely aware of the importance of suppliers to the seamless running of the business.

“Suppliers are our main partners,” he continues. “Especially in our country the local input (molasses and technical alcohol) is under monopoly with the Ethiopian Sugar Corporation. So, our growth depends on the corporation’s capacity to supply.”

FOOD & DRINK

“Tastepoint, the new name for Frutarom in the Ethiopia , is the leading name for premium flavors.

Supporting the growth of the alcohol industry in Ethiopia, Frutarom has succeeded in leading the alcoholic beverage market together with local manufactures of alcohol.

Our local approach and innovative flavors make our customer’s products market leaders.”

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However, there is high deviation between the input NALF demands and what the Ethiopian Sugar Corporation can supply.

“We are looking for an alternative input which will substitute molasses and technical alcohol. We formed a steering committee to look for possible substitutes for the current local inputs by commissioning an alternative raw material feasibility study,” the CEO explains.

In addition to Ethiopian Sugar Corporation, NALF partners with many suppliers both locally and abroad. It uses them to obtain vital ingredients, including essences, sulphuric acid, caustic soda and glass bottles.

LOOKING AHEAD Just like companies the world over, NALF was affected by the current pandemic. It responded quickly, ensuring that employees were wellinformed and provided with PPE. It

also prepared an impact assessment and action plan on how to respond to COVID-19, both now and in the future.

NALF was also able to add a valuable new product to its roster – hand sanitiser, which it distributed to its staff and other organisations in need.

“We supported many nongovernmental and governmental organisations with denatured alcohol for sanitising purposes and to disinfect working areas,” Mesfin says.

However, the company is already looking forward to the remainder of 2020 and beyond. As well as actively performing COVID-19 response activities, the CEO also outlines ambitious plans to replace old machinery with newer models, such as the liquor plant at the company’s Sebeta branch. He also plans to install an enterprise resource planning (ERP) system – software that integrates

main business processes – to enhance communication and productivity.

All in all, the CEO feels optimistic about the upcoming year.

“We look forward to a bright future within the industry because an improving electric power supply is expected to boost the industrialisation of many factories in the country,” he explains.

“This helps overall economic growth, boosts per capita income and increases demand for the beverage industry products.”

NATIONAL ALCOHOL & LIQUOR FACTORY Tel: +251 115 516 999 info@nalf.com.et www.nalf.com.et

Africa Outlook issue 84 | 87

JAVA HOUSE

88 | Africa Outlook issue 84

FOOD & DRINK

THE PERFECT CUP OF COFFEE ‘Superbrand’ Java House popularised coffee culture in Kenya, and has ambitious plans for growth across East Africa Project Manager: Lewis Bush

A

ccording to one version of events, coffee was first discovered in Ethiopia by a goat herder – he noticed that after consuming berries from a certain tree, his goats would be up half the night.

He reported the news to a local abbot, who infused the berries to make an energising drink. News travelled across the Arabian Peninsula; by the 16th century coffee was widely drunk in Persia, Egypt, Syria and Turkey.

It was in these countries that coffee house culture originated; people would gather to drink coffee, engage in conversation, watch performances, and keep up to date with the news. The idea soon caught on and these days people across the world visit coffee

shops to relax with friends or attend business meetings.

But in 1999, when Kevin Ashley and Jon Wag were searching for a venue like this in Kenya, they came up short.

Kenya is renowned for its aromatic arabica coffee, which is grown in rich volcanic soil on the foothills of Mount Kenya. However, there was no subsequent social space in which to enjoy coffee made from these beans.

And so, Java House was born.

SPREADING COFFEE CULTURE The first branch of Java House was opened in 1999 in Nairobi. Fast forward 21 years and Java House is East Africa’s leading coffee and food chain, consisting more than 80 branches across four F&B businesses.

It currently reaches 20,000 guests a day across all branches.

Africa Outlook issue 84 | 89

JAVA HOUSE

THE JAVA HOUSE FAMILY Java House Group consists of four food and beverage brands: • JAVA HOUSE: A coffee-led, casual dining concept • PLANET YOGHURT: Self-serve frozen yoghurt outlets • 360 DEGREES: An upscale but casual restaurant serving artisan pizza • KUKITO: An alternative quick service restaurant brand

90 | Africa Outlook issue 84

‘IT IS UNSURPRISING, THEN, THAT LAST NOVEMBER JAVA HOUSE WAS CROWNED BRAND OF THE YEAR AT THE GLOBALLY RENOWNED WORLD BRANDING AWARDS IN LONDON’ So, what explains the brand’s success? For a start, Java House is committed to continual evolution to meet its customers’ increasing expectations.

When we first spoke to Java House’s CEO Paul Smith last year, he had recently implemented sweeping changes to the company, including digital media campaigns and numerous reimaging projects.

A Singapore-based design company, Optimotto, helped Java House rebrand with vibrant uniforms and colourful, African-themed outlets.

Everything has been revamped, from its website to its menus.

It is unsurprising, then, that last

November Java House was crowned Brand of the Year at the globally renowned World Branding Awards in London. Only a month before it achieved ‘superbrand’ status from the Superbrands Council and Consumers from Across East Africa. The council uses consumer interviews to determine the designation, suggesting that Java House is a brand that Kenyans resonate with.

A second reason for Java House’s success is the entrepreneurial spirit of its management, who are quick to spot and capitalise on a gap in the market.

In 2011, it pioneered frozen yoghurt in the country when it opened its Planet Yoghurt brand. In 2018, it launched

FOOD & DRINK

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360 Degrees Artisan Pizza in Kigali, Rwanda, bringing the first upscale yet casual Italian restaurant to the region.

Its latest venture is Kukito – a healthier Kenyan alternative to fried chicken.

“We are delighted to unveil Kukito to the public. This brand is as Kenyan as it gets. It upholds the love for chicken and the need for human connections over amazing food. We hope your excitement matches ours,” said Priscilla Gathungu, Java House Group Head of HR, during the launch ceremony.

STAYING TRUE TO ITS ROOTS But amid the innovation and diversification, Java House is staying true to its roots. Its key focus over the upcoming months is to implement an ambitious franchising programme and continue building its iconic brand.

It offers interested partners training, design and project management support; brand guidelines and support in achieving a ‘world class’ opening

‘THE AIM: TO HAVE OPENED 200 STORES IN THE NEXT FIVE YEARS ACROSS ITS CURRENT COUNTRIES OF OPERATION – KENYA, UGANDA AND RWANDA – AND ALSO POTENTIALLY IN NIGERIA AND ETHIOPIA’ strategy; a franchise portal covering everything from standard operating procedures to menus; comprehensive induction and training, and much more.

The aim: to have opened 200 stores in the next five years across its current countries of operation – Kenya, Uganda and Rwanda – and also potentially in Nigeria and Ethiopia. To achieve this growth, it intends to relocate and replace its current factory, expanding its footprint from 4,000 square metres to 6,500 metres.

Throughout all this expansion, Java House has not lost sight of what is

important: creating a delicious cup of coffee for its customers.

It only ever uses Kenyan AA beans, which are considered one of the best arabica coffee beans in the world. Grown at an altitude between 1,700 and 1,800 metres, the beans create a rich, heavy-bodied coffee with notes of bergamot, berries and lemongrass. Java House carefully roasts its Kenyan AA beans itself, and the resulting brew is a source of pride to the company.

With its high-quality coffee, attractive ambiance and ambitious plans for growth, the future certainly looks bright for Java House Group.

Africa Outlook issue 84 | 91

LAFARGE ZAMBIA

CONSTRUCTION

Zambia

BUILDING A NATION

Lafarge Zambia continues to supply projects up and down Zambia, its high-quality cement products a go-to solution for construction clients and contractors Writer: Tom Wadlow | Project Manager: Josh Mann

I did not sleep much in 2019 due to the turnaround needed, and now I am often awake with concern for our staff’s health and safety due to COVID-19, but I know we will prevail. I am confident about our future and our ability to weather the storm – however, it will be challenging.”

Jimmy Khan’s tenure as CEO of cement producer Larfage Zambia has, by his own admission, not been plain sailing.

Arriving at a company already operating in an increasingly competitive industry, the onset of

coronavirus through 2020 has brought about a wholly new set of complex challenges.

But it is a task that he and the organisation have embraced and tackled head on, this after a whirlwind 2019 which saw something of a remarkable transformation of the business, one which has laid the foundation to face the COVID challenge and emerge even stronger on the other side.

“The cement industry in Zambia has dramatically changed in the last five years, with two new competitors arriving in 2015 and 2018 respectively Africa Outlook issue 84 | 93

MATERIAL HANDLING & LOGISTICS

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“I owe a very sincere thank you to our customers, our suppliers and transporters and, of course, the Lafarge Zambia staff” – Jimmy Khan, Country CEO

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POWERPLUS 42.5N This is designed for heavy construction projects, including bridges, railways, stadiums and airports. Powerplus 42.5N is a Portland cement tailored to building applications where highstrength concrete is required to maintain structural integrity.

96 | Africa Outlook issue 84

and a local competitor doubling production in 2019, meaning the market moved from being undersupplied to dramatically oversupplied,” Khan explains.

“This type of change is not normal, and it creates an industry shock that can have multiple short term impacts – price drops, position changes, brand impacts and talent leakages.

“I arrived at a very exciting time in January 2019 – our business was on a precipice with just two options.

One, we downsize materially with restructurings and closure of plants; or two, we recover in 12 months and take back our leadership position. If we were not successful in 12 months, the group would not have an appetite to continue burning cash with a negative net profit.”

While innovation has been key to the revitalisation of the business, the core part of the plan involved going back to basics.

The company has streamlined over the last two years and currently has two cement plants and three kilns

which provide 3,200 tonnes per day of capacity. Indeed, it is the only two-plant operation in the country, its sites at Lusaka (one million tonnes capacity) and Ndola (400,000 tonnes) providing a material strategic advantage in terms of logistics, as well as producing the widest product range on the market.

This network is supplemented by several delivery depots, 70 retail outlets (Binastore), and around 700 employees and a similar number of dedicated fleet drivers – a total of about 1,400 team members.

“I owe a very sincere thank you to our customers, our suppliers and transporters and, of course, the Lafarge Zambia staff,” Khan adds.

“They have all stepped up. The work that has been done to turn this business around in 12 months is nothing short of spectacular, and none of this would have been possible without having each one of the three groups fully engaged.”

Indeed, the CEO is quick to further acknowledge the company’s people

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ETEC is an integrated solution provider in the cement and extended industries, with its own core technology and a focus on innovation.

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LAFARGE ZAMBIA as the key point of difference in what is a congested market.

“Lafarge Zambia has a modern automated pre-calciner plant, but in our business, the cost and quality of production is a derivative of the people as much as the hardware,” Khan continues. “Our Lusaka (Chilanga) plant is new with a closed circuit ball mill, while our Ndola plant is more than 50 years old, but the cash cost is quite comparable and the standard deviation of the cement at Ndola is below 1.4 points, which is world class in terms of quality and consistency.

“With two new players coming in, we have had almost a zero percent loss of talent and only four expats in our business – truly, our people and

teams are a dramatic differentiator in this market.”

The company’s people are also extremely well trained, with 2019 alone seeing more than 7,000 man hours spent on staff education.

And Khan himself speaks as somebody who has benefitted from training and mentorship. His time at Lafarge began in 2003 with the North American business, an experience which taught him the critical importance of company culture.

“Having a good manager was more important to me than anything else professionally,” Khan says. “Curtis Beckett, a quirky but brilliant manager, is where my journey started 17 years ago and he is probably why I am still at Lafarge.

KHAN AND LAFARGE Upon graduating in 2003, Khan had his eyes on the big four accounting firms before his recruiter presented him with the opportunity to apply for a position at Lafarge’s North American division.

Admitting to being grossly underprepared, Khan quickly realised the need to organise himself and, after an interview with several managers over more than two hours, accepted a job offer still under the premise that it would lead to the holy grail of the accountancy giants. However, this soon changed, with Africa generating particular interest.

After moving to Nigeria in 2013, Khan soon learned the nuances of managing multi-layered teams, a key learning being to give his managers space to run their own teams and build up their own leadership skills. In 2015, he took his first Managing Director/CEO position, heading up Lafarge operations in Mauritius which, at the time, was turning over $70 million and had 270 employees on the books.

“While we turned that Mauritius business around in two years, I made mistakes that I needed to learn from. I thought I needed to be liked and popular to be able to influence such a large population quickly, and I found myself getting too close to my executive committee, sometimes blurring the lines of professionalism and friendship,” Khan says. “The CEO position is often a lonely one, and difficult decisions need to be made in the interest of all employees and the group – it is important to keep that professional integrity at all times. The success of Mauritius is ultimately what gave me the opportunity to be in Zambia, where I continue to learn every day.”

98 | Africa Outlook issue 84

CBMI AFRICA LTD CBMI AFRICA LTD (CBMI Zambia Subsidiary), affiliated to China National Building Material Group(CNBM) that is listed in Fortune Global 500, is a wholly-owned subsidiary of CBMI Construction Co., Ltd. It is located in the core business district of Lusaka, the capital of Zambia, with convenient transportation and obvious location advantages.

The main business of CBMI AFRICA LTD is turnkey industrial engineering and construction projects. The company provides customised EPC or EP mode general contracting integrated service in such aspects as engineering consultation, design and R&D, equipment manufacturing, civil construction and installation, production and commissioning, spare parts and components, aftersales service, and production management at various scales for clients in accordance with their requirements and environment conditions. The company’s business involves industrial construction, metallurgy, power, municipal, environmental protection and other fields.

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“Over these last 17 years I have had fantastic managers and this is what has kept me engaged and motivated at the company. I quickly began to understand corporate life and culture and my curiosity grew.

“Lafarge is an organisation that allows a person to be curious about new areas and I knew I had to seize the opportunity. As a result, I always volunteered for the jobs that were either difficult or not many wanted to do, such as heavy travel, or confrontational by nature, like auditing. During those first 10 years I visited many countries with Lafarge, but the African countries piqued my interest the most.”

ADAPTIVE AND RESPONSIVE And this curation of culture has come to define the success of Lafarge Zambia over the past two years or so, the COVID-19 crisis in particular highlighting the resilience built up in the organisation during this time.

Of course, the virus has had an impact operationally and commercially, but adherence to globally consistent safety standards and culture has enabled the company 100 | Africa Outlook issue 84

PRODUCT SNAPSHOT

POWERCRETE 42.5R PowerCrete 42.5R is a cement product designed for applications in the mining industry. For ease of handling in mining environments, PowerCrete is packaged in 25-kilo bags and has a plastic inner lining that makes it water resistant – providing greater workability in underground mining conditions.

to keep disruption down to a minimum. Worldwide, LafargeHolcim has recorded very low infection rates compared to other industrial businesses of a similar size, an observation backed up by its external medical provider SES, which oversees hundreds of multinationals.

Khan reveals that Lafarge Zambia saw a 30 percent drop in sales volumes in Q2 2020, a trend which would have forced many companies to cut staff, benefits or salaries to make up the deficit. However, thanks to his team’s response, none of this has happened.

“We enjoy a healthy balance sheet and the turnaround measures completed in 2019 have helped Lafarge Zambia sustain through this crisis,” Khan explains.

“As of Q3 we are seeing a rebound and some level of normalcy. However, we are sending critical weekly messages to all members of our team that COVID-19 is real, and that we must continue our vigilance and safety practices.

“Coincidentally, we started investing heavily in digital solutions in 2019 and, due to COVID-19s arrival, many of

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Lift & Shift Trucking Based in Zambia, Lift and Shift Trucking transports equipment and supplies throughout the country.

Whether it is moving farm equipment or transporting supplies from one side of the country to the other, Lift and Shift Trucking will ensure that your products arrive safely and on time.

The company’s services include: • Cargo transportation • General logistics • Realtime tracking • Packaging and storage • Weighbridge Lift and Shift Trucking is based in the Zambian capital Lusaka, its team made up of professionals dedicated to first-rate customer service who work to keep things as simple as possible for clients.

those initiatives have been accelerated and turned into material successes overnight.”

These include the launch of two new applications, the first designed for customers to place orders, track deliveries, and check balances in real time.

COVID-19 has highlighted how electronic orders are practical and safe, and has accelerated the adoption of digital technologies across all aspects of life, and construction is no exception. Through a robust digital campaign in March 2020, the Lead Retail app has been a huge hit.

Since its launch, over 85,000 tonnes of building materials have been processed via this method and online sales volumes have doubled.

The other application centres around an Uber Eats delivery-style partnership with a local startup.

“Our discussions began around cement bag delivery to end users within 90 minutes, as small as one bag to as large as 600 bags,” says Khan.

“The initial response from them was 102 | Africa Outlook issue 84

quite apprehensive, and this was a wholly different idea for us as well.

“We offered to invest in their application to help develop a Lafarge Cement interface. Our target was to sell 500 bags of cement a month and get some positive marketing presence with end users. It has been three months and we have currently sold 27,000 bags, 35 percent being repeat customers, and have had an overwhelmingly positive response.”

Such has been the success of the scheme, the two parties plan to roll the service out in two more markets outside of Lusaka where it is currently available.

PARENT POWER Indeed, innovation and adaptability are why the Zambia operation has been running for more than 70 years, the company also benefitting hugely from its membership of the wider LafargeHolcim enterprise.

The merger of two giants, Lafarge and Holcim, in 2015, the group is very much a global leader in all things

The firm is able to transport a range of goods up and down the country from industries including: food and drink, agro chemicals, plastics and packaging, agriculture, engineering equipment, dangerous goods and more.

It is also proud to be a partner of leading cement producer Lafarge in Zambia, a collaboration which is hoped will continue for many years to come.

“I always perceived my company as a unit that could make a difference with its quality service and competitive pricing. Taking a path less travelled, I expanded Lift and Shift Trucking into a complete logistics solutions company, a highly sensitive business that requires a high amount of technical knowhow, expertise and specialised knowledge.”

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LAFARGE ZAMBIA building materials, its history dating back to 1833 when Lafarge was founded in France by Joseph-Auguste Pavin de Lafarge.

Later in the 1800s, Lafarge won what was dubbed the contract of the century when it became supplier to the Suez Canal in Egypt. Here, it delivered 200,000 tonnes of hydraulic lime needed to the build the piers.

Holcim is also well over 100 years old and carries enormous heritage, the Swiss firm being established in 1912

by Adolf Gygi who opened a cement plant in Holderbank.

Today, LafargeHolcim operates four major business segments all over the world – cement, aggregates, ready-mix concrete and solutions and products. To give an idea of its global scale, the firm employs around 72,000 employees across 2,300 sites spread over 80 countries, Zambia being one of them.

It also houses a vast amount of intellectual property, with some 170 PRODUCT SNAPSHOT

SUPASET 42.5R SupaSet is a rapid setting, earlystrength cement that is ideal for block-making and concrete processes. Its fast drying rate and two-day strength makes it the product of choice for block makers.

104 | Africa Outlook issue 84

‘LAFARGE ZAMBIA DONATED TO THE HOSTING OF SEVERAL KEY EVENTS THROUGH THE BUSOLI ROYAL ESTABLISHMENTS AND CUUNDU CULTURAL FUND, WHILE IT ALSO SPONSORED THE COUNTRY’S PUSH WOMEN AWARDS’ patent families in its portfolio and 40 percent of such patents being related to low-carbon solutions.

Across the group, 2019 saw a net sales growth of 3.1 percent alongside a 4.3 percent increase in waste reused in operations and 5.7 percent decrease in freshwater withdrawn per tonne of cement made, a sign that the company is growing sustainably.

And the powerful network is only getting stronger, the worldwide group reliant on thousands of partnerships with suppliers and vendors to keep its operations running smoothly on a day to day basis.

In Zambia, Khan explains that the division operates one of the farthest average trips per truck in the entire LafargeHolcim group. It delivers 55 percent of its sales with a fleet of 700 trucks that between them cover 19 million kilometres annually, or around 800 kilometres per trip which is well above the industry average of 150 to 200 kilometres.

It is a huge undertaking, one which costs around $18 million a year, making fluid supplier relations of massive importance.

“This is absolutely paramount,” says Khan. “I spend about 30 percent of my week with suppliers, transporters and customers.

“Our top 10 transporters who represent 80 percent of our fleet are people who I know on a first name basis, have my personal number and are considered a core part of our Lafarge family. We have partnered together and brought truck turnaround times from seven hours down to 2.5 hours with a target to reach 90 minutes.

“Using our CSR teams, we have proactive communication with customers on deliveries and we are planning to integrate the truck GPS systems into our LeadRetail app so real time delivery on the truck is available to customers.”

LAFARGE ZAMBIA CARING FOR THE COMMUNITY The formidable heritage and resource base of LafargeHolcim is an undoubted advantage to the Zambian operation, as it is to all company divisions across the world.

Despite making a small loss for the year 2019, Lafarge Zambia has zero long-term debts and is therefore able to continue investing in the country, not only in its own operations but also the wider community in which it operates.

“Our community’s growth and prosperity lies at the crux of our organisation,” Khan adds. “We believe that when our communities prosper, we as a company are on the way to realising one of our greatest growth objectives: building a better Zambia for all and having health and safety as our overarching value.”

Indeed, this is a vital component of the company’s identity, shown by the tremendous variety of events and

projects it donated to through the course of last year.

For example, it recognises the rich and diverse culture to be found in Zambia which includes a number of colourful cultural ceremonies. Here, Lafarge Zambia donated to the hosting of several key events through the Busoli Royal Establishments and Cuundu Cultural Fund, while it also sponsored the country’s Push Women Awards.

Wellness is another key strand of CSR activities, no better highlighted than by its Malaria prevention programme which sees employees’ homes fumigated and provided with mosquito nets, with further support given to charities to fumigate homes of other local families.

The annual Lafarge Lusaka Marathon, which has been running since 2012 in partnership with the Zambia Amateur Athletic Association, is another demonstration of wellness CSR in action.

CSR IN FOCUS Lafarge Zambia works with partners to spearhead a range of communitydriven activities in the country. Some of these include: ROOM TO READ: Lafarge Zambia’s partnership with Room to Read has promoted a reading culture which has helped fill the void caused by a lack of libraries in the country. For several years now, Lafarge has built libraries at schools across the country, in a bid to improve literacy.

Allterrain Services (ATS) Allterrain Services (ATS) is the leading remote site facilities management specialist with operations across 25 African countries.

Our international standards of operational excellence, quality, safety, ethics and good governance, together with our experience in creating supplier networks, adapting our business practices to local needs and changing conditions, coupled with developing local talent and skills provides holistic client value.

We dedicate ourselves to deliver the highest levels of quality, value and service to our clients and we recently celebrated 20 million man-hours LTI free. ATS is committed to fully implementing an Integrated HSE Management System and we are currently certified throughout Africa for OHSAS 18001, ISO 14001 ISO 9001 and ISO 22000.

We pride ourselves on being flexible and adaptable to ensure the highest standards of service excellence and client satisfaction.

ATS and Lafarge have been in partnership since 2015 and during this period ATS has provided the following integrated facilities management services to Lafarge Zambia PLC; - General building maintenance including air-conditioning services - Reception services

HABITAT FOR HUMANITY: Lafarge has partnered with Habitat for Humanity since 2004, building houses for those less fortunate and uplifting communities by donating cement to build houses for needy families that come from female led households.

- Catering services

TWITTI SCHOOL: The school is under the management of the Lilayi Education trust in Chilanga Lilayi. It was built by the Help of a Friend for Zambia Society, in partnership with Lafarge which donated cement for the project’s construction.

- Cleaning and housekeeping services

SAVING MOTHERS, GIVING LIFE: A Lafarge and USAID Project, Saving Mothers, Giving Life partnered in the construction and renovation of maternal waiting shelters in Zambia. Lafarge Zambia contributed 3,000 bags of cement to construct 10 mothers’ shelters, the project spearheaded by USAID to keep mothers and their babies safe and healthy.

106 | Africa Outlook issue 84

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MPHAMVU 32.5N Zambia’s leading general purpose cement, Mphamvu 32.5N is developed to suit a wide range of applications, from domestic to major developments. A key feature is its ease of use, builders choosing the product because of how simple it is to mix, place and finish with minimal loss.

108 | Africa Outlook issue 84

“The last marathon held in 2019 featured the Republican President Dr Edgar Chagwa Lungu and the First Lady Madam Esther Lungu,” Khan recalls.

“The primary aim of the marathon is to promote athletes, wellness and fitness in the country. The funds raised through participation are distributed to various charities that Lafarge Zambia supports across the country, which includes Chilanga Mother of Mercy Hospice Chawama and Kabulonga Cheshire Homes, and the University Teaching Hospital-Cancer Disease Hospital.”

As well as financing and organising events, the company has donated cement to a large number of important community building projects, including several primary and secondary schools in Lusaka, Itawa, and Sianda, and road construction developments.

It has also donated 11 acres of land to the local Chilanga authority to

build a new civic centre, as well as more than 75 houses to the Ministry of Education and Home Affairs to provide accommodation to teachers and police officers in the local area.

At the Chilanga plant, Lafarge Zambia often hosts community groups as it bids to keep close ties with local people, a feature which has been especially prominent during Zambia’s fight against the coronavirus pandemic.

The defining event of 2020, COVID19’s global spread from the Chinese province of Wuhan has caused tremendous disruption, not least in lives lost but also economic hardship as a result of measures to try and contain the virus.

Almost everywhere has felt the ripple effects, and Zambia is no different as it bids to keep coronavirus at bay.

Here, as well as adopting stringent internal measures, Lafarge Zambia has invested heavily in the wider fight against COVID-19.

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Lafarge has been a community stalwart in Zambia ever since it arrived in the country, participating in many social projects

Africa Outlook issue 84 | 109

LAFARGE ZAMBIA

“Health and safety is a core value, therefore the health and safety of the nation is of great importance to us as Zambia is our home,” says Khan.

“We have therefore implemented initiatives in our communities in partnership with local government, district commissioners offices and the district health departments to ensure the health and safety of our communities during this crisis.”

Such measures include provision of branded vehicles with COVID-19 messages and public announcement systems for use in Chilanga and Ndola, and wide-reaching disinfection of public places in these two areas.

Further, the company donated 8,000 masks, 1,000 bottles of hand sanitiser and 1,000 bottles of hand soap to the Ministry of Health (as well as other supplies to charities) in a bid to boost personal hygiene, seen as key to helping prevent the virus from spreading among the population.

110 | Africa Outlook issue 84

A SAFE AND SECURE FUTURE The coronavirus pandemic has presented a challenge like no other to Lafarge Zambia, the year 2020 one of the most challenging and nuanced of all the 71 years the company has been present in the country.

In the midst of the transformation programme in 2019, the business celebrated its 70th birthday, a feat which has taught Khan the value of treating every day differently, and the paramount importance of not slipping into what he describes as autopilot mode.

“17 years ago, when I first joined Lafarge, I assumed if a company survives five years it is basically on autopilot, and the growth and progress becomes linear and continuous,” the CEO recalls. “However, being in an industry position where there are multiple fast-growing competitors, I have realised how naive I was.

“I now have a strong appreciation for Jeff Bezos’s observation that

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No 1 Induna Mills,

Light Industrial Area, Kitwe, Zambia.

Howick, KwaZulu-Natal, South Africa.

Tel (office): +260 764 444 700

Tel (office): +27 33 239 7200

Email: admin@rematiptop.co.zm

Email: info@rematiptop.co.za

admin@rematiptop.co.zm BrianB@rematiptop.co.zm www.rema-tiptop.co.za

Plot No.406/401A Chimwala Road, Off Boer Road, Makeni, Bonaventure, Lusaka, Zambia

Africa Outlook issue 84 | 111

LAFARGE ZAMBIA

PRODUCT SNAPSHOT

POWERBUILD 42.5N Powerbuild 42.5N is the fifth cement in the Lafarge Zambia portfolio. It is specially designed for mass concrete applications, such as foundations for large buildings.

‘every day is day one’. If we are not progressing forward and innovating daily, we are losing position and, in our industry, as with most heavy capital industries, position is critical.

“I believe it takes only a year or two of complacency or negligence to lose position in our industry and probably about five to 10 years to get it back, or potentially you never recover to the ‘glory days’.

112 | Africa Outlook issue 84

“With that in mind, the 70-year mark is an exceptional achievement by the teams in Zambia. The longer those years of operation become the sharper we must be – Mia Hamm said it is easier to climb the mountain then to stay on top. If anybody perceives that Apple, Toyota, Google, Tata and Amazon find it easy to stay on top, I assure you they do not.”

And staying on top of the Zambian cement industry is exactly what Khan is determined to do moving forwards.

Thanks to constant innovation, challenging old ways of doing things and embracing new ideas, Lafarge Zambia is well-placed to supply any uptick in local demand.

The CEO signs off the conversation in buoyant fashion, stating his confidence that the market will continue to provide opportunities for growth and expansion.

“I read a lot of papers from economists and market experts to help me make the right decisions for

our business and people,” Khan says.

“However, often I find that we overcomplicate things and believe that our strategic views have become very short term in the last two decades. There is an excessive amount of information and it can become overwhelming for many managers.

“I think in most of Africa there is the simple reality that for the next 30 years we will need agriculture, power and cement. There may be blips of overcapacity or supply demand mismatches, but overtime it will always even out. Investing in Africa is still the way to go for the next few decades – we just need courage and talent.”

LAFARGE ZAMBIA Tel: +260 211 367 415 enquiries.zambia@lafargeholcim.com

www.lafarge.co.zm

CONSTRUCTION

Tanga General Dealers Co. Ltd established in 1991 has a wide range of experience in supply of goods and services throughout Zambia and Congo DRC. We have the following portfolio:

Mountolive Consultancy and Logistics

Instrumentation spares Food Grade Enamel Paints & Lubricants Safety and environmental materials Industrial Laboratory spares Chemicals spares Electrical spares Mechanical spares

We offer but not limited to the following goods and services; • • • • • • • • • •

Corrosion Prevention & Treatment Rubber Lining Personal Protective Equipment Supply of Tools and Hardware Supply, Repair, Servicing and testing of Electrical and Mechanical Equipment Supply and Repair of Valves Metal Fabrication, supply and installation Supply and repair of various Steel/HDPE Pipes, Fittings and flow meters Supply and Repair of Pump Barrels Supply, Repair, Service and proof load Testing Of All Lifting Tackles Plot Number 7629 Off Nyerere Road Light Industrial Area Kitwe, Zambia enquiry@tangageneraldealers.com | sales@tangageneraldealers.com +260 212 220 382 | +260 955 767 552

• • • • • • •

Clearing and Forwarding Logistics Consultancy Supply Chain Consultancy Warehouse Management Trade and Investment Facilitation Port Operations Management Bulk Commodities Trading

Plot C11 Vitanda Street, P.O.Box 70315, Ndola, Zambia T +260966298430 | +260974081317 E mcmainsa@gmail.com

Africa Outlook issue 84 | 113

DANGOTE CEMENT GHANA

LAYING THE FOUNDATION Having introduced competition into the Ghanaian market, Dangote Cement has established itself as a go-to for quality and nationwide coverage, its products helping to build vital infrastructure and homes across the country Writer: Tom Wadlow | Project Manager: Josh Mann

114 | Africa Outlook issue 84

CONSTRUCTION

G

hana has come an extraordinarily long way over the past three decades.

Once impoverished and on the verge of economic collapse, fast-forward to the present day and the situation is unrecognisable.

Yes, the onset of COVID-19 has disrupted growth and will cause some tremors, but the past few years have seen Ghana’s GDP grow at some of the fastest rates in the world, with gold, cocoa and oil among its key exports and drivers of prosperity.

This has enabled its government to embark on ambitious infrastructure programmes. Driving a One District, One Factory policy, the idea is to create jobs through the setting up of factories and industries as the country embraces greater levels of industrialisation.

One such industry is cement, a critical supplier to all infrastructure and building projects taking place across Ghana.

“Ghana’s cement sector is both challenging and exciting at the same time,” comments Brice Houeto, Country CEO for Dangote Cement, the continent’s leading producer.

“For example, the most basic cement raw material is limestone, and Ghana is not fortunate in the sense that it does not have large enough reserves for cement producers to draw upon.

“However, the industry has been able to overcome this and the amount of construction going on here is above average compared with the rest of the continent, therefore we are seeing a sustained growth in cement consumption.

“The number of players entering the industry is also increasing very quickly, which of course presents a challenge but means we operate in a dynamic and vibrant sector.”

Indeed, Dangote can be credited for catalysing the competitive buzz seen within Ghana’s cement industry today.

It entered the market in 2010, breaking a long-held monopoly and

introducing both a quality and large range of products not seen previously. Today, the company dispatches cement both in bags and bulk from its Tema facility (Greater Accra), an operation which employs around 1,300 local people and sells into the domestic market and nearby countries.

Current capacity stands at 1.2 million tonnes per annum, a capacity that could be supplemented in case of a surge in demand by the group from other Ecowas production sites.

Brice Houeto, Country CEO for Dangote Cement

DANGOTE CEMENT IN NUMBERS Dangote is 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 • $2.5 BILLION revenue in 2019 • 45.6 MILLION tonnes per annum capacity across Africa • Production operations in 10 COUNTRIES • 32.5R, 42.5R and 52.5R ranges

Africa Outlook issue 84 | 115

DANGOTE CEMENT GHANA

Bosch Rexroth Ghana Bosch Rexroth Ghana established in 2003 services the mining, oil and gas and heavy industry markets in Ghana and West Africa.

The company operates world-class repair, service, testing, calibration and installation facilities to meet every hydraulic application requirement.

As a member of Bosch Rexroth SA Group of companies, the company represents over 27 different brands in Africa catering for all hydraulic and pneumatic needs of its customers.

www.boschrexroth.africa

STANDING APART For Houeto, there are two major reasons why Dangote stands above the competition in the Ghanaian market.

“The first is simply about quality,” he says. “What we produce is unmatched, and Dangote is trusted and recognised as such by building professionals all over the country.

“Second is our enormous logistics setup and capabilities. We have a fleet of over 1,200 trucks which are delivering products to customers, a capacity that is simply unrivalled and 116 | Africa Outlook issue 84

unheard of. So, not only do we make the best quality cement, we are able to deliver it more efficiently to every corner of Ghana than anybody else on the market.”

Indeed, such has been the success of Dangote Cement Ghana, the Country CEO outlines plans to upgrade and optimise the operation.

“Much of this work involves upgrading our processes and making improvements in productivity,” Houeto continues. “By the time this is completed, we anticipate making

productivity gains of up to 30 percent.

“The COVID-19 outbreak has delayed things slightly, but we expect to complete phase one of our plans around November this year, assuming we’re able to start making progress again in September.

“Phase two will begin in the first half of 2021 and involves redesigning the workflow at the plant, creating a clear distinction between the industrial and background support parts of the business. That will enhance both safety and productivity.”

With the Tema upgrades now expected to be completed by around the end of 2021, Dangote is also planning to build a new grinding plant at Takoradi.

Nestled on the coast around 230 kilometres southwest of Accra, it is designed to produce around half a million tonnes per year and will help the company to fulfil increasing demand in the local market.

CONSTRUCTION

Move Now. Drive Tomorrow.

Shape Africa.

Bosch Rexroth Ghana is the Hub for Bosch Rexroth SA in West Africa and offers high-quality products and services in the form of aftermarket service and the installation and refurbishment of hydraulic pumps, cylinders, valves, hose and fittings and hydraulic and mechanical torque wrenches. From planning and design, through to manufacture, installation and commissioning, total hydraulic, pneumatic and automation solutions are provided.

Bosch Rexroth Ghana limited No.3 Airport Road, Air force Takoradi, Ghana Tel: +233 (0) 241 23 766 Email: Westafrica@hytec.com.gh Website: www.boschrexroth.africa

SUPPORTING COMMUNITIES Central to Dangote’s ability to continue serving Ghana’s cement needs will be a fully functioning supply chain, a facet of the business that Houeto describes as absolutely essential to the success it has enjoyed thus far.

Moreover, the COVID-19 pandemic has heightened the firm’s emphasis on working with local partners, with Ghana full of dynamic producers and businesses with which it can develop fruitful partnerships for a large range of its needs.

“An optimised supply chain is one of the most important factors in our continued success here,” Houeto says. “All of our suppliers I like to refer to as partners, and we must ensure we master these relationships so that in turn we can keep providing exceptional and competitive solutions to our customers.

“We cannot afford for there to be a break in the chain, as the impact Africa Outlook issue 84 | 117

DANGOTE CEMENT GHANA

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 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.

118 | Africa Outlook issue 84

on our costs, operational efficiency, and even more so our customers’ satisfaction, is huge.”

Dangote’s support of local communities stretches far beyond providing opportunities for supplier companies.

Not only does the company itself provide major employment opportunities through its Tema plant and 1,200-strong distribution fleet, it also engages various community stakeholders through programmes that are entrenched in sustainability.

“Over the 10 years we have been in Ghana, Dangote has continuously increased its involvement with members of the community through many different activities,” Houeto says.

“For instance, we have a greenhouse initiative which is about safeguarding the environment around us, and every year we partner with local forestry commissions to plant trees around the coastline in the Tema area.

“Everything we do in the community is focused on sustainability, whether it is do with the water supply, developing schools or helping hospitals – a self-fulfilling reward of our daily job.”

OPTIMISTIC OUTLOOK Indeed, central to the Country CEO’s stance on Dangote’s commitment to communities is the impact such initiatives will have in the long term, the message very much being that the company is here to stay.

CONSTRUCTION

Having achieved the milestone of 10 years in Ghana, the firm has a strong foundation from which to further develop its brand and reputation, the clear disruption being caused by the COVID-19 outbreak only being a temporary hurdle to overcome.

Indeed, the pandemic has forced Dangote to adapt to new and innovative ways of working, something Houeto is eager to embrace permanently.

“Like many businesses, Dangote Cement Ghana had to learn to cope with the constraints of the pandemic,” Houeto says. “The health and safety of our personnel as well as our customers is of utmost importance. One of

the ways we found to preserve what matters the most was to fast-track working at home, so we digitalised our transactions as much as possible.

“We have kept our employees safe and our customer service has not been weakened, and so I would like to take some of these new ways of working forwards, especially where digitisation has made us more effective.”

This ‘new normal’ leaves Houeto optimistic, not only about Dangote’s own fortunes in Ghana but the wider economic picture and demand for cement as the company moves into its second 10-year chapter.

He concludes the conversation buoyantly: “I can only see growth in

this industry over the next decade.

Demand will continue to rise both in Ghana and regionally – the need for housing, schools and other vital infrastructure is going to increase.

“Dangote entered the market at a very low base in terms of output and consumption, and there is so much space still to move into.”

DANGOTE CEMENT GHANA Tel: +234-1-460-643 www.dangotecement.com customercare@dangote.com

Africa Outlook issue 84 | 119

PEP CLOTHING

120 | Africa Outlook issue 84

MANUFACTURING

I have a love affair with fabrics, and I love working for the group. Even though we are a publicly listed company, it feels like a family business and a family entity, with people at its heart and values that I closely identify with personally. I’ve been on an exciting journey and touched almost every part of the business over nearly 30 years.�

Marthie Raphael was destined to enjoy a long career in the garment industry at Pep Clothing.

Having funded a degree in Consumer Science from Stellenbosch University by making and selling her own evening and bridal wear, a passion inspired by consecutive creative generations in the family, the now-CEO has only worked at one organisation and its affiliates since graduating in 1992.

The organisation in question is Pepkor, a holding company which owns the largest retail store footprint in Southern Africa, with Pep Clothing operating as its garment manufacturing arm, based at a factory just outside of Cape Town for more than 50 years.

CLOTHING WITH CULTURE Pep Clothing has been producing carefully crafted garments for more than 50 years, its longevity a product of a company culture that puts people at its heart Writer: Tom Wadlow | Project Manager: Kyle Livingstone

Africa Outlook issue 84 | 121

PEP CLOTHING Raphael began her career as a Quality Engineer at this division (then known as Pep Manufacturing), moving to a Pepkor joint venture site in Malawi

PEP CLOTHING AN INTRODUCTION Pep Clothing is an apparel manufacturer supplying garments, flip flops to leading retailers across the Southern Africa region, and medical PPE to local South African hospitals.

Established more than 50 years ago, its main line of business continues to be school clothing (seven million items made per year), including trousers, shorts, shirts and dresses, with other key lines being in the underwear category (two million items).

The company strives to continually improve its production methods and quality of output, with all products subject to random daily audits using a statistical model known as the Pep Clothing Defect Classification List.

For more information on Pep Clothing and parent company Pepkor, visit: www.pepkor.co.za

for four years before returning to South Africa in the retail wing of the group. In 2003, she moved back into the Pep Clothing business, working her way up through business development and logistics roles, becoming CEO in 2006.

Today, the company produces around 15 million high quality items a year for retailers all over Southern Africa, including those within the wider Pepkor group and external customers.

Its main product lines include school wear, underwear, flip flops and the recently added medical garment category, these carefully crafted products produced by a workforce of around 2,000 dedicated personnel.

And many of these employees share Raphael’s passion and love for the business. The CEO’s long career with Pep Clothing is by no means occurring in isolation – staff turnover is extremely low, and hiring only tends to occur in batches when a new production line is launched.

“People are our business,” Raphael says. “Values drive behaviour and culture, and our entire organisation, both at Pep Clothing and Pepkor, revolves around relationships and caring for our people. We are all based at one site, and therefore the relationships between us are critical to productivity.

Savino Del Bene South Africa Savino Del Bene South Africa is part of the Savino Del Bene SpA; a global company that specialises in logistics and supply chain management, offering a variety of services in the form of ocean, air and road freight around the world. In South Africa we have offices in Johannesburg, Cape Town, Durban and Port Elizabeth.

Our parent company was founded in Italy more than 100 years ago and has 174 owned branches and 108 subsidiary offices across the globe; and employs over 4,400 people, worldwide.

We offer advanced shipping services, customs clearance, warehouse management and a wide range of logistics support services and solutions. We have longstanding relationships with all the key carriers in air and ocean and we have global reach. At Savino Del Bene we constantly strive to ensure that we deliver value through impeccable service with flexibility and agility at the most competitive price for our clients.

As a successful, growing business, we are driven by the desire to raise the standard of living for all South Africans by making a positive contribution to our clients’ business.

We aim to facilitate their trade and achieve mutual success so that we can create jobs and growth opportunities for our people in South Africa.

We are passionate about our people and we make every effort to ensure that our company is a great place to work and that they are equipped with the skills to make them successful in our field, so that they too can make a positive contribution to their communities.

The company has achieved B-BBEE level two status with 125 percent preferential procurement recognition.

We are committed to diversity in the supply chain and logistics industry and our BBBEE status incorporates 26 percent black women equity.

Marthie Raphael, CEO

122 | Africa Outlook issue 84

www.savinodelbene.com

Savino Del Bene South Africa is part of the Savino Del Bene SpA; a global company that specialises in logistics and supply chain management, offering a variety of services in the form of ocean, air and road freight around the world. In South Africa we have offices in Johannesburg, Cape Town, Durban and Port Elizabeth.

Our parent company was founded in Italy more than 100 years ago and has 174 owned branches and 108 subsidiary offices across the globe; and employs over 4400 people, worldwide.

We offer advanced shipping services, customs clearance, warehouse management and a wide range of logistics support services and solutions. We have longstanding relationships with all the key carriers in Air and Ocean and we have global reach. At Savino Del Bene we constantly strive to ensure that we deliver value through impeccable service with flexibility and agility at the most competitive price for our clients.

JOHANNESBURG HQ Tel: +27(0) 11 437 3000 headoffice.jhb@savinodelbene.com Eastport Logistics Park, Building 1, Cnr R21 Expressway & R25, Witfontein Ext. 75, Kempton Park

CAPE TOWN Tel: +27(0) 21 951 4117 capetown.za@savinodelbene.com Cnr Symphony & Robert Sobukwe Rd, Steel Park, Bellville South, Cape Town

As a successful, growing business, we are driven by the desire to raise the standard of living for all South Africans by making a positive contribution to our clients’ business. We aim to facilitate their trade and achieve mutual success so that we can create jobs and growth opportunities for our people in South Africa.

We are passionate about our people and we make every effort to ensure that our Company is a great place to work and that they are equipped with the skills to make them successful in our field, so that they too can make a positive contribution to their communities.

The company has achieved B-BBEE level 2 status with 125% preferential procurement recognition. We are committed to diversity in the supply chain and logistics industry and our BBBEE status incorporates 26% black women equity.

DURBAN Tel: +27(0) 31 579 8660 durban.za@savinodelbene.com 14 Mahoganyfield Way, Springfield Park, Durban

PORT ELIZABETH Tel: +27(0) 41 373 1556 portelizabeth.za@savinodelbene.com 118 Cape Road, Mill Park, Port Elizabeth

PEP CLOTHING

Traderplus Traderplus, a division of FineLine Technologies, is the premier provider of quality swing tickets for the African continent.

As of 2018 the combined synergies of Traderplus and FineLine put to use FineLine’s RFID encoding and printing expertise, alongside Traderplus’ industry leading printing processes and capabilities that have become a global benchmark of swing ticket supply for brick and mortar and e-commerce retailers and their vendor networks.

FineLine Technologies is an international provider of barcode, and RFID integrated labels, tags and stickers to major retailers of apparel, footwear, fine jewellery, watches, eyewear and other hard-to-tag items.

“We have a very active culture calendar to reinforce our values, and actively seek to make a difference in our people’s lives. Our care committee helps employees who face difficult situations such as a flooded home, and we rally round to help each other. It is a testament to our culture because, even though individual staff may not have much, they are always there to help others in need.”

Indeed, culture is as important as competency when Pep Clothing does engage in recruitment, the CEO also explaining a preference to train new recruits from within, leveraging the considerable practical and virtual resources of Pepkor, which includes several modules on the culture and values underpinning the organisation.

ADAPTING TO THE NEW NORMAL For Raphael, this emphasis on values not only explains why she has stayed with the group for so long, but is also the single most significant factor behind its sustained success over more than half a century.

And today, during a time dominated 124 | Africa Outlook issue 84

by the COVID-19 pandemic, this sense of togetherness is more important than ever.

Pep Clothing, a people intensive operation used to working at close quarters with one another, has had to adapt more than most in order to safeguard its employees and comply with regulations issued by South African health authorities.

“We actually had a bit of a head start here in Cape Town,” Raphael states.

“This is because hand sanitising has been in place here for around three years due to Cape Town’s water shortages. Scaling that up has therefore been fairly straightforward, but we’ve faced other challenges in terms of wearing masks and especially social distancing.

“For our production lines to run effectively, people need to be close as we don’t have machinery which passes a garment from person to person. We have installed screens in the canteen and production line to reduce the risk of transmission, but we’ve not been able to avoid the need for people to get up and move products, so productivity has of course been affected.

Headquartered in the United States, FineLine owns and operates manufacturing hubs in North America, South Africa and the APAC region.

Established in 1998, FineLine remains focussed on providing our international supply chain with the highest quality service and products. Pioneered on the 36-48 hours turnaround, and worldwide delivery within five days, supply chain efficiency is our business.

Aligned in much the same way, our partnership with Traderplus gives many of South Africa’s top retailers, the maximum benefits of complete visibility of their swing ticket programmes via FASTtrak – FineLine’s sophisticated, rules-based data management platform.

Our cloud-based portal gives retailers and their suppliers 24-seven online ordering, tracking and analytics that our customer base uses to support their business needs and decision making.

We are helping over 300 retailers and 50,000 vendors consistently and efficiently manage their supply chains, printing over seven billion tickets every year. Labelling innovation is our business, and we can help you.

www.traderplus.co.za

Enhancing Global Supply Chains through innovative labelling solutions As the FASTEST global service bureau printer in the industry, Traderplus ( A Division of FineLine Technologies) provides retailers and their vendors with complete supply chain visibility and in-depth order analytics. Get merchandise to shelves faster with Swing_tickets from Traderplus

Click.

Encode & Print.

T (+27) 31 579 4114 | E info@traderplus.co.za www.traderplus.co.za | www.finelinetech.com

Delivered.

PEP CLOTHING

Fibertex Fibertex Nonwovens is a leading manufacturer and supplier of a comprehensive range of nonwovens and performance-based materials.

The Fibertex team has worked closely with customers around the globe for over 50 years, offering the finest solutions in acoustics, automotive, building, composites, concrete, filtration, furniture, geotextiles, Medico and wipes.

The Medico range comprises a wide selection of fabrics used for woundcare and dressings. Quality filter media is combined with advanced filtration technologies – including nanofibres - to ensure dependable filtrations solutions for a safer environment. Highperformance wipes are used for critical cleaning in many industries, including healthcare services, vital in the fight against the COVID-19 pandemic.

www.fibertex.com

“We’ve also developed a detailed contact tracing system, so if one of our employees tests positive, we can identify who they have been in contact with and quarantine those people. It has certainly been a challenge, but we have acted quickly and handled the situation well.”

Indeed, the introduction of the medical garments line is also a direct consequence of the coronavirus outbreak, which has struck South Africa particularly hard in comparison to the rest of the continent.

Pep Clothing will produce around 500,000 disposable gowns over the next financial year beginning October 2020, in addition to those currently in production, with plans to diversify into coveralls (boiler suit-like garments) around February 2021 once new waterproofing machinery has been installed at the Cape Town factory.

“Historically South Africa has relied on imported medical clothing, especially in the disposable segment, 126 | Africa Outlook issue 84

but we plan to keep this production line in operation permanently once the pandemic has passed,” Raphael says. “It has required a lot of collaboration between various stakeholders to create a suitable product, but we’ve developed a fabric with our textiles partners and are supplying local hospitals.”

ON THE FRONT FOOT The medical line of business joins flip flops as a new venture for Pep Clothing, which has carved a niche in this part of the footwear market after an extremely productive foray over the past 18 months or so.

Raphael reveals that 90 new hires were required to kickstart the operation, which currently produces around five million pairs of flip flops a year.

Such has been the success to date, the company received a Disney Award for the best product in Africa last year in the flip flop category, what the CEO describes a major confidence boost.

“The award was tremendous recognition for the team and is a huge feather in their caps,” Raphael says.

“Being a clothing factory, we’ve never ventured into the realm of footwear before, so to create a whole new division from scratch with brand new people was a big task. The fact they’ve managed to win an award within eight months of production starting is a massive motivation for them – I am extremely proud.”

Growing output of both the flip flop and medical categories is a major priority for Pep Clothing over the coming year, these avenues seen as opportunities to offset any slowdown in business in more conventional product lines as a result of the ongoing COVID-19 impact on the national and regional economy.

This is one of three key objectives for Raphael, another being to develop more customers within the Pepkor group.

The third is to drive continuous improvement and build further

MANUFACTURING

At Fibertex, we work closely with our customers to create high-performance and sustainable solutions that improve the quality of life for us all.

MEDICO

AUTOMOTIVE

FILTRATION

CONSTRUCTION

SPECIAL SOLUTIONS

Head Office +27 31 736 7100 | salesza@fibertex.com | www.fibertex.com

PROUD LOGISTICS PROVIDER TO

PEP CLOTHING

TP

TECHPAK CARTON MANUFACTURING

Committed Supplier to Pep Clothing

• Freight Forwarding • Customs Clearing • General & Bonded Warehousing • Transportation by Air, Sea & Road • Bespoke Supply Chain Solutions info@primelog.co.za | +27 21 447 2599 | www.primelog.co.za

P.O. Box 390, Maitland 7404, Cape Town, South Africa Tel +27 21 593 0882 | Email faseeg@techpakcarton.co.za Digital +27 877025796 | Mobile + 27 824421651

Africa Outlook issue 84 | 127

PEP CLOTHING

PEPKOR

BY NUMBERS Pep Clothing is part of Pepkor Holdings Limited, which has the largest retail store footprint in Southern Africa. Its presence can be summarised by the following key numbers:

R69.6 billion – annual revenue

56,100 – number of employees

5,415 – number of stores 2.4 million square metres – amount of retail space

>400 million – number of transactions per year

Pepkor’s revenue is split between: clothing and general merchandise (65 percent); furniture, appliances and electronics (13 percent); building materials (12 percent); fintech (10 percent).

128 | Africa Outlook issue 84

efficiency within its operations, an ongoing goal which highlights the crucial nature of relationships with partners up and down the supply chain.

“We cannot afford to have any bottlenecks, and so our supply chain is critical, from packaging and admin to transportation and distribution,” Raphael says. “We therefore invest heavily in this area, not necessarily purely financial, but also in terms of time, effort and education.

“For the past six years we have run a very successful supply development programme, which has enabled us to massively improve our on time and in full performance across the supplier network – from about 66 percent up to 99 percent – with all of our suppliers.”

The CEO goes on to describe the personal nature of these relationships, the company opting not to use an agent and deal directly with partners – whether based in South Africa or internationally, Pep Clothing will visit supplier premises at least once a year.

Again, people are key to finding the winning formula, both inside

and outside of the company. And for Raphael, the future hinges on the motivation of employees, their wellbeing continuing to be front and centre of considerations as the firm navigates its way through this extraordinary period.

She signs off with optimism, looking ahead to a bright future.

“I am confident about what the year ahead has in store. While we are not expecting, for obvious reasons, to see much growth, there are many focus areas that are cause for excitement.

“We have a saying here that we have to do something better today than we did yesterday, and that philosophy will carry us through the times ahead.”

PEP CLOTHING Tel: +27 (0) 21 937 2300 sales@pepclo.co.za

MANUFACTURING

Cape Town 21 Thor Circle, Thornton Tel: + 27 21 532 0102 Rajesh Raghunandan: +27 83 678 3863 Durban 10 Monaco Place, Westmead Tel: +27 31 705 1643 Rabin Nagesar: +27 84 402 2927

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Africa Outlook issue 84 | 129

ROYAL CROWN PACKAGING LIMITED (RCPL)

RISING TO THE

CHALLENGE Royal Crown Packaging Limited continues to serve its home market in Ghana as well as other West African countries, despite the ongoing challenges presented by the COVID-19 pandemic Writer: Tom Wadlow | Project Manager: Lewis Bush

130 | Africa Outlook issue 84

MANUFACTURING The past two years for the packaging industry in general have been a challenging one, and Royal Crown Packaging Limited (RCPL) has had its fair share.

Nonetheless, our mantra has always been to find innovative ways to overcome any hurdles we may stumble upon.�

These opening words from Managing Director Emelia Adjei reflect the resilience and dedication to quality shown by RCPL in recent times.

A lot has happened since Africa Outlook last spoke with the Ghanaian manufacturer in 2018, including the outbreak of the global coronavirus pandemic which has dominated the whole of 2020 thus far.

But while the direct and indirect challenges presented by the crisis are numerous and profound, RCPL proudly continues to serve a growing number of customers in both Ghana and the wider region, its goal to become a West African leader with a global footprint still very much in sight.

RCPL INTRODUCTION Royal Crown Packaging Limited is a manufacturer of corrugated boxes, folding carton solutions and plastic bottle caps.

Established on May 8, 2015, the company began production seven months later.

A sister company to Kasapreko Company Ltd and a subsidiary of Pinnacle Holding Company, RCPL is a wholly owned Ghanaian firm and leading industry player in both domestic and international markets.

Supplying the highest quality products with the key goal of establishing itself as Africa’s leading packaging manufacturer, the company continues to receive numerous industry awards.

ROYAL CROWN PACKAGING LIMITED (RCPL)

Emelia Adjei, Managing Director

COUNTERING CORONAVIRUS Indeed, Emelia reveals that RCPL, like many of its industry peers, has had to quickly adapt to a new normal and overcome numerous obstacles presented by the onset of COVID-19.

“These include a sharp increase in the prices of our imported paper reels, which is our major raw material,” she says. “Another challenge has been the limited availability of cargo vessels and unreliable sailing schedules, since most countries were on partial lockdown with a majority of staff working from home. Related to this were the excessive delays in the clearing of goods from the ports of discharge.”

Emelia is a holder of a 40 Under 40 Award, an initiative of Xodus Communications Limited which seeks to identify, honour and celebrate a cross-section of the nation’s most influential and accomplished young business leaders. She also won the Woman Exporter of the year in 2018, presented by the Ghana Export Promotion Authority.

It is fair to suggest her leadership credentials have been tested by the recent disruption to business, RCPL’s response being both well-coordinated and with employee welfare at its heart.

132 | Africa Outlook issue 84

“As we always say, our staff are our greatest asset as a company,” Emelia adds. “We have put in place measures to promote world class corporate culture, work-life balance, team bonding spirit and above all ensure high productivity through accountability.

“During the peak of the COVID-19 period we ensured the safety of all staff by running skeletal staffing, providing all relevant PPEs and instituting an employee assistance programme. We continue to run our skeleton crew and work from home model until such a time that all bans are lifted, and we are sure of their full safety to return to work. Similar strict safety protocols are extended to our visitors and transporters to ensure their safety, while customers are also routinely reminded of the importance of HSE. “RCPL has also supported our gallant front liners by donating PPE to the medical team stationed at Tema West Municipal Assembly in our community.”

In terms of dealing directly with the procurement challenges already identified, the Managing Director explains several ways in which RCPL has adapted.

This includes implementing a plan where the company has at least one-month import cover for every stackable production item, the firm also reprofiling its major suppliers based on product availability, consistency in delivery time and reliability.

Further, RCPL is improving communications across its supply chain via regular follow ups, while a similar ramping up of communications is being implemented regarding contact with customs and clearing houses to help avoid unnecessary delays.

And although some supply chain issues inevitably remain, Emelia is quick to praise the ongoing cooperation and dedication of RCPL’s partner network.

“The success of our business could not have been possible without the immense support of our cherished suppliers,” she states. “At RCPL, we believe having the right partners and suppliers is pivotal to our operations and we acknowledge them as sensitive and important extensions of our business – this has reflected in the quality of output we produce onto the market.

“We are still open and exploring more supplier options. Royal Crown has over 80 anchor suppliers in different fields, including papers, adhesives, inks, spare parts, office and admin materials, and other consumables.

“Our suppliers also serve as our knowledge base, and most of them are curious to share industrial innovations, new findings, and progressive knowledge with us. We have had cases where our paper suppliers recommend new practices and technologies even if it will affect their margins. A clear example is the introduction of recycled paper to meet demands of lower-class markets.”

MANUFACTURING

Corporate and Investment Banking

at stanbicbank.com.gh.

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DISCOVERING OPPORTUNITIES Indeed, the coronavirus crisis has compelled companies like RCPL and its suppliers to innovate in order to navigate difficulties.

Emelia observes that, in many subsectors, an overstock of finished goods has led to a shortage of packaging such as boxes to store products in, presenting opportunities for the company to plug the gap in supply. She also notes that the pattern of industry demand is also shifting.

“We have seen a move from food and beverages to chemicals and apparel,” the Managing Director says.

“Demand will rise for specific products, including dietary supplements such as flexible blister foils, closures, rigid plastics, pumps, to name a few.”

The Managing Director also points to the example of RCPL’s sister firm Kasapreko Company Ltd, which set up a hand sanitiser plant and is producing it in large quantities to help curb the spread of the pandemic.

Africa Outlook issue 84 | 133

ROYAL CROWN PACKAGING LIMITED (RCPL) “Manufacturers of corrugated boxes are also benefitting from surging demand from express delivery and ecommerce as well,” Emelia continues.

“Thanks to our diversified portfolio, we were able to take advantage of the new opportunities arising and leverage on our strengths to remain a relevant and trusted player in the industry.

“In the long run, we believe that the constraints resulting from COVID-19 will cultivate new consumer habits, which will stimulate a further dissemination of the ecommerce platform into the market.

“As a result, consumers who did not previously purchase online will start shopping online, while regular users might expand their online buying frequency. This will successively lead to growth momentum for corrugated box producers.”

Another demonstration of RCPL grasping the nettle can be seen in the numerous industry awards the company continues to receive.

At the Ghana Manufacturing Awards, it scooped the Best Growing Manufacturing Company of the Year 2019, as well as Packaging Product Manufacturing Company of the Year 2020, while the Entrepreneurs

Sally Osei-Boateng, Group HR & Corporate Communications Head

Cynthia Aziiba, Factory Manager

Foundation of Ghana recognised RCPL at the 2019 Made In Ghana Awards in the packaging category as the best in the industry. Further, the firm also won a President’s National Awards for Export Achievement, presented in December 2019 by the Ghana Export Promotion Council.

Sally Osei-Boateng, Group HR & Corporate Communications Head, adds: “We are proud of our achievements of being continually recognised and awarded both locally and internationally for our good works.

“Our Managing Director was nominated by the Institute of Packaging Ghana to represent our country at the World Packaging Organisation Conference (WPO), held in Bali, Indonesia, where Ghana received its membership plaque and also had the opportunity to be awarded sponsorship for a five-day intensive packaging technology training programme.”

Education continues to form a crucial part of RCPL’s corporate social responsibility, with the company honouring its pledge to widen its support for the communities within which it operates.

For example, over the past two years the firm has partnered with TOKU Foundation, an NGO focused on providing educational sponsorship

for needy but brilliant female students to reach their highest heights academically.

Another endeavour has seen a culture of saving initiative launched at two schools, with more than 1,000 students given the challenge of saving as much as they can by the end of 2020. All students have been provided with customised corrugated piggy banks, taken through a session on the need to save and challenged to win exciting prizes.

“We have also introduced an annual innovation challenge into the world of packaging,” Sally adds. “This we do in collaboration with the Institute of Packaging Ghana and various universities across the country. Our maiden edition was held in July 2019 and saw candidates from the University of Ghana Legon, Kwame Nkrumah University of Science and Technology (K.N.U.S.T) and Ashesi University take part.

“The aim of this project is to introduce students to the world of packaging, identify the inherent challenges within the packaging industry and propose innovative solutions to the constraints inherent in our sector.”

KEEPING PACE It is very much the aim of Emelia and Royal Crown to increase its

MANUFACTURING

CELEBRATING CYNTHIA A Q&A with Factory Manager Cynthia Aziiba Q: Tell us about your journey to Royal Crown, and why you decided to join the company.

A: Before joining in Dec 2015 as Supply Chain Manager, I worked with DHL Supply Chain for about three years as the Contract Manager in charge of Diageo’s contract for Ghana, but prior to that I had worked with Guinness Ghana Breweries Ltd for 14 years.

Back in 2015, Royal Crown was starting its business operations and looking for a Supply Chain Manager to head the department. I was honoured as the ideal candidate to hold the position, after my interaction with the interview panel. I had to form my team, develop policies, SOPs, and trainings for the department. With the challenges and heavy workloads that come with new business operations, I had to work for long hours under constant pressure (while nursing a five-month-old baby) for the first year.

After a year and a half, there was an opening for the role of a Factory Manager. I applied, went through the interview process, excelled and took up the position with a lot of enthusiasm.

If I am not mistaken, it is uncommon in our part of the world for a woman to be in charge of such a position in a plant operation in the corrugating industry and this makes me very proud and challenges me more. My decision to join Royal Crown was greatly influenced by the

contribution to the community through schemes such as this, a target which will only be met if the business continues to operate successfully.

The key to this in the future, for the Managing Director, is to run as efficiently as possible in order to keep pace with increasingly competitive regional settings.

And there are several ways this will be done. From installing new machinery and better tracking drivers to enhancing navigation systems and providing customers with accurate estimated arrival times, RCPL is determined to reinforce its brand position and make itself a supplier of

fact that it was a solely Ghanaian-owned business. I had an urge to work for a company that was fully Ghanaian, and so this opportunity presented itself at the perfect time, and I was honoured to join the winning team.

Q: What roles and responsibilities do you have as Factory Manager?

A: As the Factory Manager, I oversee the operations of the organisation. I am in charge of the production, maintenance and facilities, and research and development. These departments are predominantly male dominated – close to 100 males. One of our strategies going forward is to encourage females to take up roles in these fields through our career fairs.

My daily operational routine starts with meetings across all functions of the company to discuss plans such as safety, production, dispatches and maintenance for the past 24 hours, and what is expected (resources and materials needed for the day’s operations) for the next 24 hours and beyond. This is followed by my gemba walk to see exactly what we have available and what needs to be done. Every day has its own tasks and challenges to be tackled, and that is what makes it exciting for me.

Q: What advice would you give to other women looking to pursue a career in the industry?

A: One thing I feel is very important is the need for a better gender balance in the packaging and manufacturing industry, especially in the operations section. I would encourage more females to challenge themselves by pursuing careers in the industry.

choice for even more customers in Ghana and West Africa.

“When it comes to delivering goods to the customers, it is essential to do it right,” Emelia says. “In order to improve our competitive advantage, we have decided to take control of our delivery management system.”

The Managing Director also refers to the ultimate ambition stated at the beginning – to be the leader in the packaging industry not just in Ghana, but with a global footprint. She highlights a huge opportunity to shift reliance away from China, the world’s major industry player, which suffered badly during the COVID-19 pandemic

with many clients looking elsewhere to fulfil their packaging needs.

It makes for fascinating period ahead, and by the time we next catch up, RCPL may well have transformed itself into a truly global player.

ROYAL CROWN PACKAGING LIMITED (RCPL) Tel: +233 (0) 302 819 196 info@royalcrownpkg.com www.royalcrownpkg.com

Africa Outlook issue 84 | 135

DP WORLD MAPUTO

136 | Africa Outlook issue 84

SUPPLY CHAIN

Mozambique’s

GLOBAL GATEWAY

As DP World continues to develop its container terminal and surrounding infrastructure at Maputo, the firm’s customer-centric ethos and bold plans for expansion are placing it on the regional map Writer: Tom Wadlow | Project Manager: Lewis Bush

Africa Outlook issue 84 | 137

DP WORLD MAPUTO

M

aputo – nestled on Africa’s south-eastern coast, the Mozambican capital serves a crucial gateway to the region’s vast economic hinterland.

Originally named after Portuguese trader Lourenco Marques, who first explored the area in 1544, the city’s container terminal has emerged as an important conduit linking local industrial endeavours (such as mining) to the markets of eastern and southern Asia.

And with enviable land connections to the likes of South Africa, Zimbabwe and Eswatini, as well as sea connections via shipping lines travelling to Europe and the Middle East, India, and East Asia, Maputo can rightly be regarded as a global transit hub.

DP World has been managing, developing and operating the Maputo container terminal since it acquired previous stakeholder P&O in 2006, with Mozambique International Port Services being renamed to DP World Maputo two years later.

Christian Roeder is the company’s CEO. An industry veteran who has spent many years in Southern Africa having started his career at Maersk, the region’s steady growth and still undoubted potential to develop further is what has kept him here for more than 15 years.

“There are certainly exciting developments occurring, and to be a part of it has been a very rewarding experience,” Roeder says.

“In terms of imports and exports a lot of people are dependent on this port to access not only Mozambique, but the wider region and countries like South Africa. East-west trade dominates with very little movement between north and south, and Maputo is right on the end of one of several east-west trade corridors that run through the country, while also serving India.

“It is therefore our obligation to Mozambican clients who must use us to keep costs down, and improve our efficiencies. If we can help keep the cost of trade down, we will have done our job.”

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DP WORLD MAPUTO THE DP WORLD WAY

DP WORLD MAPUTO – KEY NUMBERS • Capacity:

300,000 TEUs

• Quay length:

308 metres

• Terminal size:

15 hectares

• Depth alongside:

12 metres C.D

• Container yard capacity:

2,450 TEU ground slots

• Rail sidings:

1,500 metres

140 | Africa Outlook issue 84

As part of the largest marine terminal operator in the world, DP World Maputo carries considerable brand trust, its core activities being centred around the discharging and loading of containers in vessels.

For Roeder, the firm’s customercentric approach to doing business is what stands it apart, the CEO determined to breakdown what has been a misguided perception about using Mozambique for transit.

“I think there has been a psychological barrier for quite some time,” Roeder says, “with fears about bureaucracy and the different language here.

“However, we put the customer at the centre of our thinking and that is reflected by the repeat business we receive, and that is crucial. I know this because I have been on the other side

as a port user many times, and I know how frustrating it can be to deal with bureaucracy and inefficiencies.

“We therefore try to be proactive and tackle issues such as gate congestion, and put in a lot of energy into dealing with customer enquiries regarding container releases as quickly as possible.

“It is also important to look at our operations with a wider lens. For instance, if it takes several hours for a truck to get in and out of port, then the fact we can service them within 20 minutes once they are here makes it a somewhat meaningless KPI. We look at how we fit into the end-to-end logistics process. This perspective, I believe, makes us different.”

Indeed, making life easier for customers is engrained in organisational culture around the world, its stated purpose being: a global approach to a local business

DP WORLD MAPUTO environment where excellence, innovation and profitability drive our core business philosophy of exceptional customer service.

BIGGER AND BETTER And these values will only continue to be strengthened as DP World Maputo forges ahead with an ambitious phased expansion plan.

The terminal’s capacity currently stands at 300,000 TEUs, the site spread over 15 hectares with a quay length of 308 metres and depth alongside of 12 metres. By the time the expansion phases are completed, the terminal will double in size and provide a capacity of a million TEUs, a quay length of 655 metres and alongside depth of 16 metres.

SERIOUS ABOUT SUSTAINABILITY Sustainability forms a key part of the DP World Maputo business model. This is delivered across several key areas, including: • Protecting the environment through responsible use of natural resources, preventing pollution and leading the way on environmental policy • Investing in people by encouraging diversity, developing talent and listening to employees • Ensuring high safety standards through the implementation of best policy and practice, and supplying and maintaining safe equipment

The work is already starting to pay off. In April 2020, for example, DP World Maputo welcomed its largest ever vessel when the giant Santa Catarina, operated by Maersk, called into port carrying 3,310 containers.

Further still, Roeder outlines important plans to upgrade cranes and boost the site’s rail operation, the plan being to install four sidings of 750 metres. A linked South African dry port, DP World Komatipoort, is already in operation, a facet of DP World Maputo’s offering that again will be expanded in the coming years, helping to bring it closer to its clients.

“This will help us present Maputo as a viable alternative corridor to Durban,” Roeder says.

“We’re at the stage where we want to grow beyond the port. Maputo port has been trying to tap into the hinterland business for at least 10 to 15 years and there have always been issues, but we are making progress and using technology to make it easier for our clients to use us.

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We are the right partner for optimising our customers’ financial resources, with the best solutions for treasury management and the safe investment of surplus funds, with returns in line with defined maturities and objectives. We have a vast range of financing solutions for day-to-day business management, treasury support and investment and customised solutions for import and export activities.

BCI is the ideal partner across the whole of the corporate life cycle, from start-up to domestic expansion investment plans. We have dedicated managers who will assist, advise and serve you with quality and diligence in all aspects of commercial and investment banking. You will also find specialised teams prepared to advise and maximise your business in such key economic sectors as agriculture, energy and infrastructures.

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142 | Africa Outlook issue 84

DP WORLD MAPUTO

The company acknowledges the vital role played by its network of suppliers “A big priority is to open up access to rail services, and we are working closely with our fellow shareholder Caminho de Ferros de Moçambique (CFM), the national rail operator. If we are able to shift more cargo off of Mozambique’s roads and onto trains, then this will reduce pressure on a

“A BIG PRIORITY IS TO OPEN UP ACCESS TO RAIL SERVICES, AND WE ARE WORKING CLOSELY WITH OUR FELLOW SHAREHOLDER CAMINHO DE FERROS DE MOÇAMBIQUE (CFM), THE NATIONAL RAIL OPERATOR” 144 | Africa Outlook issue 84

road system that struggles to cope with huge numbers of trucks.”

Indeed, Roeder is quick to acknowledge the vital role that the company’s entire network of suppliers play, the combination of these relationships ensuring that DP World Maputo is able to serve its customers efficiently 24-seven and deliver impressive turnaround times.

From crane manufactures to technology vendors, an effective container terminal operation relies on a series of stakeholders each playing their role, the development and expansion of Maputo dependent on these partnerships continuing to flourish.

THE COVID CONUNDRUM To suggest that these ongoing developments are not progressing without challenges, however, would be a huge

understatement.

This year will be remembered as the year that coronavirus caused a global health and economic crisis, the impact felt in almost every region around the world with the African continent beginning to see a sustained rise in cases.

In Mozambique, the so-called first wave is yet to arrive, but Roeder explains that the virus has already caused major disruption to DP World Maputo, not least because South Africa’s lockdowns have created issues for its transit business in and out of the country.

The CEO himself has had to embrace a degree of home working, with many other office-based staff working remotely as much as possible since April. A self-proclaimed extrovert, Roeder admits that he misses the

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DP WORLD MAPUTO

human interaction that comes with being on site and is a firm believer in the productivity of a physical conversation versus a prolonged chain of emails.

However, even during these unprecedented times, DP World Maputo has been able to create positive outcomes.

“We’ve been able to concentrate internally and make this as easy as possible for our employees by being as flexible as possible,” Roeder says. “There has been more time for housekeeping and reviewing processes, seeing where we can introduce technology and digitisation to make ourselves more efficient for clients, for example in the area of customs.

“The COVID crisis has proven we are stronger together, and I am convinced 146 | Africa Outlook issue 84

now that we are in a better position to grow when the time permits. We’ve also shown that we can prepare and respond to emergency situations, so if something else happens we are ready to deal with it in a way that keeps our people safe.”

And this is very much the priority for the CEO in the immediate term – ensuring the safety of his colleagues in anticipation of any serious coronavirus outbreak in Mozambique.

Roeder tentatively expects to be back in the office and returning to some form of ‘new normality’ during the first quarter of 2021, a critical year for DP World Maputo as it looks to make progress on its various expansion goals in order to hit its 2022 targets.

Another priority for Roeder is to develop and implement a series of exciting programmes around the development of talent within the organisation.

The firm already cooperates with universities and is committed to upskilling local Mozambicans through various training schemes, but the CEO wants to diversify the workforce and open up opportunities for more women to join the industry.

“We’re really making an effort to get a more diverse group of people into the sector,” Roeder adds. “This will involve changing our recruitment strategy and driving a shift in mindset.

The groundwork is being laid at the moment, and I am excited to see how the projects evolve.

SUPPLY CHAIN

“WE’RE REALLY MAKING AN EFFORT TO GET A MORE DIVERSE GROUP OF PEOPLE INTO THE SECTOR... THIS WILL INVOLVE CHANGING OUR RECRUITMENT STRATEGY AND DRIVING A SHIFT IN MINDSET”

“I have experience of similar initiatives from my previous years of working in warehousing, and if it can be successful there, then I am absolutely confident we can make it work here at DP World Maputo.”

Rebalancing the shipping workforce will be no easy task, however.

According the 2017 Unctad Maritime Report, between two and three percent of the world’s entire maritime workforce are female.

But it is a challenge that Roeder is eagerly taking on, the encouragement of inclusion and diversity one of several key components which make up the DP World Maputo CSR programme.

Its goal? To embrace responsibility for the company’s actions, encourage

a positive impact through its activities and enhance the prospects of communities.

Indeed, building a sustainable future for the area will also be dependent on the container terminal thriving in the future, Roeder concluding the conversation by restating his confidence about the prospects of the port and what DP World Maputo can offer to clients from all over the world.

“Maputo as a corridor has a tremendous future ahead of it,” he says. “We

see ourselves playing a big part in linking certain areas in South Africa, Zimbabwe and Eswatini, and beyond that we’re looking at Zambia and the DRC. “We’re ready to act as a secondary and primary route, and if we continue to put our customers at the forefront of our thinking, I am confident that Maputo will become the terminal of choice in the region.”

DP WORLD MAPUTO Tel: +258 823010114/843985160 Fax: +258 21- 305722 www.dpworldmaputo.com

Africa Outlook issue 84 | 147

UGANDA RAILWAYS CORPORATION

148 | Africa Outlook issue 84

SUPPLY CHAIN

STAYING ON

TRACK Despite facing challenges brought about by natural disaster and COVID-19, Uganda Railways Corporation continues to drive improvements to critical infrastructure that will open up opportunities and deliver growth Writer: Tom Wadlow | Project Manager: Lewis Bush

T

he last 12 months, it is safe to say, has brought many a challenge to the development of Uganda’s rail network.

Investment has been difficult to secure, while the El Nino of November 2019 devestated infrastructure in nearby Kenya and Tanzania, vital export links which Uganda relies upon. Meanwhile, the outbreak of COVID-19 has caused severe disruption, not only causing construction projects to be put on hold, but also a standstill in passenger and freight rail usage.

However, while the difficulties presented are stark, Uganda Railways Corporation (URC) has continued to stabilise operations and make progress on a number of its game-changing projects.

“We are rehabilitating the track and rolling stock while finalising plans for full revamping of the Meter Gauge network,” comments Managing Director Charles Kateeba, speaking to Africa Outlook 12 months on from our previous conversation.

Africa Outlook issue 84 | 149

UGANDA RAILWAYS CORPORATION

Charles Kateeba, Managing Director, Uganda Railways Corporation “The year has seen commencement of the rehabilitation of Tororo-Gulu line, construction of Gulu multimodal hub and the Capacity Building Programme. We have also re-opened the second line to Kisumu and seen the return of fuel carriages from Kisumu Jetty to Jinja and Port Bell.

There is also marked growth of rail exports, now averaging 30 percent of total cargo carried.”

Kateeba is also quick to acknowledge how challenging the first half of 2020 has been.

The pandemic brought about a huge decline in import and export flows, its volumes reduced by more than 83 percent between February and May, the resultant reduction in cashflow forcing it to place some recovery plans on hold.

Commuter rail traffic also nosedived due to lockdown restrictions, although Kateeba points out that URC was faced with a situation whereby it needed to help increase railway operations.

“This is to mitigate the health risk posed by foreign truck drivers crossing our borders,” he explains. “This required us to ramp up operations, despite the cashflow problems and 150 | Africa Outlook issue 84

constrained investment climate.

“This has led to renewed attention by the government of the need to invest in rail transportation and, as a result, we’ve been able to receive allocations for urgent procurement of locomotive container handling equipment.

“The hardships faced by truck drivers and border entry points has meant longer transit times for trucks, thereby making rail, which hitherto was much slower than trucks, become attractive.

“It has given prominence to the Kisumu-Port Bell route for fuel transport by wagon ferry, and the return of Eldoret as a loading point for fuel by rail transport. We have therefore brought forward plans for rehabilitation of our second wagon ferry and fuel tank wagons.”

PROJECT PROGRESS Indeed, in spite of the challenges faced, URC is determined to fulfil its mission undeterred, which is to establish and manage a reliable, efficient and safe railway and marine transport service in East Africa for sustainable economic and social development.

Kateeba goes into further detail on a number of ongoing developments which have made promising progress over the past 12 months, starting with Tororo-Gulu line which serves northern Uganda.

Rehabilitation work began on the 375-kilometre line in February 2020, the €47 million project being funded by the European Union and Ugandan government and delivered by French contractor SOGEA-SATOM. Although the coronavirus restrictions have caused some disruption, the Managing Director is confident of timely completion in early 2023.

“The terminus, Gulu, is about 130 kilometres from the South Sudan border and 250 kilometres from the Democratic Republic of Congo,” Kateeba explains. “It is therefore expected to bring about renewed impetus to economic development.

Consultrans Ever since it was founded, Consultrans has been a strategic consultancy firm, which has been providing assistance for both public administrations and private enterprises.

In 1985 we decided to set up a consultancy firm, focusing mainly on the transport sector that would be able to give its customers integral solutions. We realised very early on that the integration of engineers and economist with lawyers and IT specialists was essential to meet this challenge.

30 years have gone by and we now have the satisfaction of being able to say we still have our first clients and our company has grown considerably, currently consisting of some 60 professionals, who have led Consultrans along new courses, turning it into an innovative enterprise present in several sectors of the economy, and a clear benchmark in the area of transport in Europe.

Since 2008, Consultrans is part of IMATHIA GROUP, that began its activities in 1999.

The Consultrans client can always expect creative solutions based on the rigorous analysis method of a changing reality and in the practical experience of the consultants.

The strength of Consultran’s human team consists of the combination of senior consultants with executive experience in methodologies and advanced tools.

www.consultrans.com

Transport Consultancy and Logistics Transport planning, demand studies, mobility analysis, modeling of the Transport system, evaluation of transport policies and projects, public bus concessions, BRT (Bus Rapid Transit) feasibility studies, plans sectorial of taxis, bicycle, traffic studies, field investigations, railway operation and simulation, as well as due diligence for investment, operation and railway simulation or economic-financial studies in transport infrastructures.

Civil Engineering High specialization in the transport sector, mainly the railway sector, where the company covers all technical fields, from geotechnics, structures or layout to superstructures, electrification, communications and signaling.

Architecture and Urban Mobility Design and technical assistance in complex and modern buildings such as intermodal stations or workshops, with the rehabilitation of historical buildings the adaptation of which to current modes of transport requires highly qualified work for their architectural adaptation, all developed with the BIM methodology.

Technology and R&D&I Projects and Studies to analyse needs, planning and development of information systems, ICT project assessment, etc.

www.consultrans.es consultrans@consultrans.es

UGANDA RAILWAYS CORPORATION

THE KAMPALAKASESE LINE The Kampala-Kasese meter gauge line was constructed in the 1950s with the main objective of transporting copper ore from Kilembe mines to a copper smelter in Jinja, and finally onto Mombasa for shipment around the world.

It was built at low cost, on an alignment running along or across swamps and wetlands laid with second hand light rails, high ruling gradient of 1.5 percent and sharp curves of 175 metre radius. The line, having largely run its life, was abandoned in 1997 and much of the track materials have all been stolen or lifted – it requires full reconstruction.

“The long-term plan is to rebuild it to Standard Gauge but there are plans to relay the line in the medium term, as the plans for Standard Gauge line have fallen behind schedule regionally,” Kateeba adds.

“The line serves a rich agricultural, mineral and tourism area of Rwenzori, connecting to the mineral rich North Kivu Region in the DRC. It is expected to boost agriculture and agri-processing industries, tourism, mineral and mineral processing and urbanisation activities.”

152 | Africa Outlook issue 84

“Alongside the rehabilitation, a multimodal hub is being set up at Gulu at the cost of $11m. Together, the two projects will bring cheaper and reliable transport to the country’s most prospective agricultural region and connection to South Sudan and northeastern DRC. It will also serve as the staging ground for oil production logistics in the Northern Albertine oil basin.”

Construction of the Gulu hub also began in February and, once complete, will deliver a wide array of benefits, not least in terms of cost effectiveness. For example, the cost of transport by rail from Mombasa to Kampala will be seven cents USD per tonne per kilometre, six cents cheaper than travelling by road.

The development will also deliver employment opportunities and growth of urban centres along the line, with

greenhouse gas emissions also set to be cut with more efficient rail operations removing trucks from roads.

The hub at Gulu will also carry a decongestion impact on Kampala, with freight destined for Northern Uganda, South Sudan and Eastern DRC able to take this alternative route, while the regional airport is also expected to benefit from more custom.

Another significant initiative highlighted by Kateeba is the URC Capacity Building programme, a scheme which over several phases will see €330 million injected into track rehabilitation (275 kilometres), refurbishment of rolling stock, renewal of workshop machinery and training of employees.

The track improvements will see it upgraded to 50 kilos per metre rail on concrete sleepers and full ballast, a vast enhancement of the existing ageing lines.

SUPPLY CHAIN FUELLED BY OPTIMISM The prospective benefits of the Gulu project reflect Kateeba’s wider confidence in the future of rail in Uganda.

Asked what he might expect to report back in another year’s time, the Managing Director reveals expectations to improve traffic and increase the share of freight travelling in and out of the country by rail.

The COVID-19 pandemic has highlighted the need for further government investment in railways, its fiscal plans now reflecting this imperative and providing Kateeba with more optimism than he had a year ago.

He concludes the conversation buoyantly: “The very survival of Uganda as a viable sovereign state depends on the success of rail to

“The main goal of the project is to modify the current railway organisation and reinforce local industry’s current market competitiveness by reducing transport costs below the road haulage rates,” Kateeba says.

“This will allow us to accelerate the country’s competitiveness, meet increasing traffic demands and create employment opportunities.”

“UGANDA AND EAST AFRICA HAS ENTERED INTO A VERY EXCITING THOUGH CHALLENGING PERIOD IN RAILWAY DEVELOPMENT AND LOGISTICS”

provide reliable transportation of her exports and imports. Being literally at the crossroads of Africa’s north, south, east and west logistics corridors, Uganda is the perfect country for trans-African rail development.

“Uganda and East Africa has entered into a very exciting though challenging period in railway development and logistics.

“On one side there’s high demand for rail transport due to high cost and inefficiency of road transport.

On the other, all the three East African countries are revamping and extending their railway networks by constructing the new Standard Gauge network that will extend to the Democratic Republic of Congo, Rwanda, Burundi and South Sudan.

“This presents an opportunity for both railway construction companies to come in with proposals for design, build, operate, transfer and private rail operation over public-owned networks and leasing of rolling stock.

Therefore, it is exciting for foreign investors to be looking at East Africa, and particularly Uganda, for investment in rail transport and related infrastructure and services.”

UGANDA RAILWAYS CORPORATION Tel: +256 312 219 100 info@urc.go.ug www.urc.go.ug

Africa Outlook issue 84 | 153

CURO FUND SERVICES

154 | Africa Outlook issue 84

FINANCE

A Digital Journey Defined by Passion and Courage Curo Fund Services is not only adopting a new automated platform that will transform its way of working, but also an evolved culture underpinned by two core values and a shift in the home-office paradigm Writer: Tom Wadlow | Project Manager: Sam Love

T

he human-machine dynamic is constantly evolving.

Today, there are about as many connected devices as there are people on earth, the IoT market alone worth well over $400 billion – fast-forward to 2030, and 24 billion connected devices will be controlled by 8.5 billion people.

It is fair to say, then, that our lives are becoming exponentially digitised, not only at home, but also at work.

Once traditional industries have been forced to transform and embrace new ways of working, a clear example being the African finance sector which has seen an explosion in mobile banking start to plug the gaps that bricks and mortar branches have been unable to fill.

Banks are having to adapt to the modern consumer in order to remain relevant, and the same can be said of the investments sphere, especially during what are challenging economic times.

“The industry here in South Africa is grappling with similar challenges to the global investments industry,” comments Barri Maggott, CEO of Curo Fund Services, provider of outsourced fund administration services to asset managers.

Barri Maggott, CEO of Curo Fund Services, has been strategically leading the organisation’s growth since May 2016

“Returns are difficult to generate, margins are being squeezed, technology is disrupting – these are just some of the challenges. However, these create opportunities for businesses who can respond quickly and find creative ways to enhance their services to clients. Thus, it certainly is an exciting space to be working in.”

Maggott has spent almost all of his career in financial services. Training as a chartered accountant in the late 1990s, he has always held a passion for the investments sector, the opportunity to join Curo in 2016 and leverage his prior experience being too good to pass up.

And he joined a company which already carried a stellar reputation as a consistent and reliable service provider.

Indeed, from its base in Cape Town Curo offers investment administration to more than 30 percent of South Africa’s top asset managers, with aspirations to grow its cohort of 300 staff and venture into the global market.

“At the heart of Curo is our relentless drive to take care of, look after and effectively manage the investment administration of our clients,” Maggott explains. “We believe that by offering a frictionless, integrated, accurate Africa Outlook issue 84 | 155

CURO FUND SERVICES service backed by domain expertise, we will allow our clients to focus their efforts on creating alpha for their clients.

“Our service experience is constructed in a way that enables clients to maintain and enhance their clients’ experience. We see client challenges as our challenges.”

Curo also stands out in that it is one of very few companies in the

CURO COMMUNITY INITIATIVES CSR, or Curo Community Initiatives, are centred on creating educational opportunities.

The company supports a team of volunteers which help Cape Town institutions to promote learning, growth and development of their students, with initiatives extended from day care and preparatory schools through to secondary schools.

“We further support previously disadvantaged youth in their tertiary education pursuits at local universities,” adds Maggott.

“We have an annual Graduate Recruitment Programme to further facilitate opportunities and encourage industry transformation.”

156 | Africa Outlook issue 84

investment administration sector that is Level 1 B-BBEE accredited, the company very much an industry pioneer in black economic empowerment and determined to spearhead a wider transformation in the sector.

DIGITAL DIFFERENTIATION Transformation can also be framed in terms of technology, its disruptive impact already described by Maggott as both a challenge and source of tremendous excitement.

This is largely because Curo is engaged in what the CEO calls a significant programme of digitisation.

Centred around a new, automated platform from which it will manage its processes, the ultimate objective is to reduce risk and enhance the client experience, enabling it to focus more energy on its own core business and customers.

“Our business involves processing a huge number of transactions, information and accounting functions and reporting this back to clients,” Maggott says.

“That production cycle is made of inputs, processes and outputs, with different teams managing each stage, almost like a factory production line.

The new platform operates on a much more end to end basis, with data seamlessly flowing straight through, requiring very little human intervention.

“This allows our people to focus on exceptions and value-added services, which essentially will allow us to offer a superior service to our clients. It is a fundamental shift in the way we run our business.”

The CEO reveals that the first batch of clients will be transferred to the new platform by the end of August, with all accounts being migrated over the next 12 months.

It is a huge project which will lay the foundation for more digital transformation at Curo in the future, and one which has highlighted the importance of fruitful partnerships.

“No business can be successful

Solve Consulting Solve is a management consulting firm specialising in the financial services industry, established in 1997 and 51 percent black-owned.

We offer advisory and implementation services to our clients, focusing on business, operations and digital transformation.

We have worked with most asset managers, life companies, investment and fund administrators, wealth managers and treasury operations in South Africa and have gained international exposure in Europe and Africa. We have cultivated a reputation as thought leaders, through our extensive exposure to industry best practices.

We are proud of our association with Curo in their transformation journey.

www.solveconsulting.co.za

without partners and service providers,” Maggott says. “We have a limited number of key relationships which are integral to our fortunes. If the relationships are based on the objective of driving ours and our partners’ success, then we believe that alignment will result in the type of partnerships we are looking for.”

PASSION AND COURAGE Curo’s digitisation programme also carries a vital human element.

Adoption of new technologies and ways of working will not be successful without the buy-in and, in some cases, upskilling of employees, a task which is embodied by the company’s transition to a new working culture.

“We have revised our cultural message to just two simple values – passion and courage,” says Maggott.

“Overturning the legacy way of doing things has been arguably the greatest challenge we have faced so far, and the culture shift is still ongoing.

FINANCE

www.solveconsulting.co.za

Expert Management Consultants to the Financial Services industry We are a Level 2 B-BBEE, 51% Black Owned boutique management consulting firm, motivated by creating and sustaining trusted-advisor relationships with our clients. Our sole focus is on the Financial Services industry and we have worked with almost all the large and medium-sized Financial Services companies in South Africa since 1997. Our credibility and reputation is sustained by developing focused areas of leadership and deep expertise.

Our Services Advisory services: We offer our clients experienced consultants who provide comprehensive guidance and support during times of crucial business decisions.

Execution services: We assign experienced, skilled and effective subject-matter experts, project managers and business analysts to assist with the implementation of business decisions and requirements.

In each of our engagements, we strive to add value to our clients by combining Deep domain expertise • Tried and trusted methodologies • Disciplined approach • Emotional Intelligence Lionel De Nicola

Chris Lourens

Nayoshen Maistry

+27 82 572 7616 lionel.denicola@solveconsulting.co.za

+27 82 600 8751 chris.lourens@solveconsulting.co.za

+27 83 778 6778 nayoshen.maistry@solveconsulting.co.za

“It also involves looking for slightly different talents and attitudes when we recruit. We need a combination of new skills that we were not looking for previously and a willingness to embrace change and challenge ideas.

Data management and reporting is essential to what we do, and we must be able to present it in a way to clients that maximises its value.”

Maggott goes on to explain another element of the new Curo culture, one which has been accelerated by the onset of the coronavirus pandemic.

“The pandemic has naturally had an impact on revenues and forced us to adopt a work from home model,” he continues. “Through early decision making and careful management, the impact on our client service has been very limited – we have been able to maintain our high standard of service delivery to clients despite the adverse circumstances.

“We also believe that there are opportunities for improvement and

new ways of doing things that have arisen out of the crisis, and are working on making sure that we capitalise on these opportunities.

“The switch has gone even better than we expected, so we’re now looking at a whole new definition of what the purpose of our office space is. The paradigm has shifted – work is now at home and the office is where you come to socialise with colleagues, have innovation sessions and be connected as a team.”

The resilience shown by Curo during an unprecedented 2020 neatly reflects the tumultuous circumstances in which the company was created.

In 2012, Sanlam and Old Mutual came together with a common problem after JP Morgan discontinued its provision of investment and asset management administration services.

It was a disastrous situation for both enterprises and one that needed resolving in rapid time – hence Curo Fund Services was born, and in just

eight years it has flourished into a 300-strong workforce administering more than R2 trillion of assets.

And looking ahead to the next chapter of the firm’s development, Maggott is excited by what the upcoming year has in store, despite all of the disruption and difficulties caused by the COVID-19 pandemic.

He concludes buoyantly: “The delivery of our new platform is the foundation of our success for the next number of years and starts in the coming year.

“Moving our existing clients to this platform will give them a significant improvement in client experience, and will ultimately provide us with the differentiated product that will enable us to attract new clients.”

Tel: +27 21 944 4000 www.curofund.com

Africa Outlook issue 84 | 157

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 158 | Africa Outlook issue 84

as all African nations court global FDI 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.

CTICC, Cape Town, South Africa

Theme: Invest Without Boundaries

AFRICA OIL & POWER 2020

SEPT. 15-17

Cape Town South Africa AFRICA’S ENERGY CONFERENCE Africa’s Energy Event returns for its fifth anniversary as a crucial platform for promoting investment in the energy industries of African countries. In 2020, we expand our format to welcome more countries, pavilions, strategic partners and delegates.

www.aop2020.com

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 decision-makers 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 fast160 | Africa Outlook issue 84

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

WH AT TO E XPE CT

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 to impact companies’ bottom line.

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 in order 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 162 | Africa Outlook issue 84

policies and raise the continent’s food and agricultural productivity to curb its annual import bill.

• CON N EC T agri producers with exporters and buyers to expand into new markets to impact company bottom line • CON N EC T food producers and processors with trade financiers, banks and impact investors to increase their turnover and get the right financial partners • CON N EC T exporters and buyers to reliable commodity suppliers therefore creating an actual market place • M AX I M I Z E profit across the agri-food value chain by connecting demand to suppliers • VA LU E Chain Connect – plug and integrate African agribusinesses to regional and international value chains

P R E - E V E N T WO R KS H O P S – 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.

TH I N KTA N KS – smaller breakout sessions (sector led) covering specific topics, opportunities and challenges. Discussions to feature in the business intelligence report.

AG R I TE C H A N D S E RV I C E S E X P O – a dedicated space to enable key stakeholders to showcase their products or services to a broad audience of participants.

B 2 B M ATC H M A K I N G – 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

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Quote MAA20AOM www.access-africa.com/register Our Hosts

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EVENTS

African Utility Week and POWERGEN Africa May 11-13, 2021 | Cape Town, South Africa | www.african-utility-week.com

The region’s largest power and water utilities exhibition A F RIC AN UTILITY Week and POWERGEN Africa, will take place from May 11-13, 2021, at the International Convention Centre in Cape Town, South Africa.

This event has been running for 20 consecutive years and has established itself as the largest power and water utilities exhibition and conference on the African continent.

We offer valuable business opportunities for utilities, municipalities, governments, regulators, large power users and solution providers.

Our ability to deliver a unique insight 164 | Africa Outlook issue 84

into the entire African power and water sector is why thousands of buyers from over 81 countries and over 80 African utilities attend every year.

Through consultation with our African industry partners, we deliver a scaled continental marketplace enabling business through professional learning, networking and connections.

Alongside our 10,000-plus attendees from 82 countries over three days, 360-plus exhibitors choose us to showcase their market-ready and innovative solutions that are appropriate and relevant for Africa.

We are committed to providing you a unique and professional experience in achieving your business objectives across the continent through partnering with African Utility Week and POWERGEN Africa.

From its humble beginnings as South African Prepayment Week to the African Utility Week rebrand and then joining forces with POWERGEN Africa in 2019, the event continues to be Africa’s premier meeting place for the entire power, energy and water value chain.

Now 20 years on, we continue to innovate and lead the conversation on transforming Africa’s energy and water economy, through expert-led content, business driven experiences, networking and strategic partnerships within the industry.

11 – 13 May 2021, CTICC, Cape Town, South Africa FIND OUT ALL ABOUT COST EFFECTIVE SELFGENERATION OF POWER AND THE INTEGRATION WHY ATTEND • Free-to-attend expo with access to over 360 suppliers and service providers • Free Knowledge Hub seminars addressing current industry challenges • Strategic Conference and workshops on integrating renewable energy to the market • Access to suppliers and providers with the know-how of implementing new technology and innovations at reasonable cost

Register for your FREE pass E: auw@clarionevents.com T: +27 21 700 3500

10 000+ visitors

80+

360+

350+

countries

exhibitors

speakers

DON’T BE CAUGHT IN THE DARK! GET AHEAD OF THE CHANGES IN THE POWER AND ENERGY INDUSTRY www.african-utility-week.com www.powergenafrica.com

THE FINAL WORD To round off each issue, we ask our contributing business leaders for their views on the same question

Neo Khauoe Principal Officer, Polmed “The healthcare industry is probably never going to be the same after COVID-19. The emphasis going forward is to ensure that we strengthen our healthcare system, both public and private, to ensure that we are ready for the next pandemic.

Most importantly, we need to urgently ensure that all our citizens have universal access to quality healthcare services.

“The most basic thing to do during a pandemic like this one is timely dissemination of accurate information to members to avoid them relying on fake news, misinformation and other pieces of information designed to instill fear, confusion, and anxiety.

“Polmed has been running a robust educational campaign to educate and sensitize SAPS members about COVID-19. Since early March 2020, Polmed has consistently updated members via various media platforms, educating members about COVID-19, and updating them on their available benefits should they contract COVID-19.

“We are continuously engaging with all the relevant stakeholders, including SAPS management and our healthcare providers to see how best we can assist members and their dependents during this pandemic, so that they can continue rendering the essential service that the country needs.”

Emelia Adjei Managing Director, Royal Crown Packaging “Royal Crown Packaging, like many other corrugating companies worldwide, has felt the impact of the pandemic in the areas of supply chain and sales at the onset of the COVID-19 pandemic and its associated lockdown.

166 | Africa Outlook issue 84

What impact has the coronavirus pandemic had on your industry, and how are you responding?

Polmed has been running a robust educational campaign to sensitise SAPS members about COVID-19

“As a packaging company, we have had to stay operational to serve the needs of not just the Ghanaian market, but also other African countries we supply, but of course ensuring all safety protocols are observed. We continue to run our skeletal and work from home model until such a time that all bans are lifted, and we are sure of their full safety to return to work. Similar strict safety protocols are extended to our visitors and transporters.”

Christian Roeder CEO, DP World Maputo “We’ve been able to concentrate internally and make this as easy as possible for our employees by being as flexible as possible. There

has been more time for housekeeping and reviewing processes, seeing where we can introduce technology and digitisation to make ourselves more efficient for clients, for example in the area of customs.

“The COVID crisis has proven we are stronger together, and I am convinced now that we are in a better position to grow when the time permits. We’ve also shown that we can prepare and respond to emergency situations, so if something else happens we are ready to deal with it in a way that keeps our people safe.”

Are you a CEO/Director with a company story to tell? Contact Africa Outlook now!

Celebrating one of South Africa’s most renowned hospitals...

GROOTE SCHUUR HOSPITAL

HEALTHCARE

Commemorating 82 Years of Patient Care Healthcare in South Africa is challenging, but Groote Schuur Hospital continually rises to the occasion with its rich legacy, passionate CEO, and expert staff Writer: Dani Redd | Project Manager: Callam Waller

G

roote Schuur Hospital is an imposing stone building in the shadow of Devil’s Peak on the Western Cape, part of a ‘miniature city’ of different accommodation and training centres.

Above its central gable is a statue of Hygeia, the Greek goddess of health – she has been welcoming patients since the hospital opened in 1938. In its current incarnation it is a 975-bed public hospital providing specialist and sub-specialist care, with strengths in transplant services and cancer care. It also offers services in all medical and surgical sub-disciplines, psychiatric, neurosciences, obstetrics, gynaecology, neo-natal care and much more. The Department of Anaesthesia, Peri-operative Medicine and Critical Care support all these specialised activities. An estimated 10,000 people pass through its doors on a daily basis.

If the walls of the building could talk,

See page

24 36

they would have thousands of stories six years of study, very few of the nonto tell. Stories of ground-breaking whites were employed in the public medical procedures; of the upheavals hospitals. I therefore started a private of World War II and of apartheid; of practice, which I managed for about world-famous doctors and dedicated eight years,” she explains. nurses.

During this period, Patel studied “The legacy of Groote Schuur a fellowship with a specialisation Hospital is a huge inspiration to all who in Public Health and was placed on work at the institution and all who wish rotation at GSH. And it was here she that they could work there,” says Dr stayed, rising through the ranks until Bhavna Patel, CEO of Groote Schuur she transitioned from the position of Hospital (or GSH). senior manager to CEO. Her own journey, from medical “I am humbled and proud to lead student to CEO, is in itself an such a wonderful institution,” she says. inspiration. Patel has had a lifelong AN INSPIRING LEGACY interest in becoming a doctor.

And it’s easy to see why.

“After qualifying at the University of Groote Schuur Hospital opened to Cape Town, I completed my internship great fanfare in 1938; a magnificent at Groote Schuur Hospital. You must cross-shaped structure designed understand that this was around the to promote recovery with its welltime when apartheid was still very GROOTE SCHUUR HOSPITAL ventilated, light-filled wards, and much prevalent in South Africa; while balconies and verandas for patients to the class was only comprised of 10 Following the reports from China, Africaair. went into lockdown. On April enjoy the fresh percent non-whites, after completing Europe, and the USA, Patel and her team anticipated that the virus would eventually arrive in South Africa. They began to plan for this in February and had de-escalated the hospital’s outpatient department and theatre activities by mid-March. On March 23rd, South

Q: HOW IMPORTANT ARE PARTNER AND SUPPLIER RELATIONSHIPS TO THE SMOOTH RUNNING OF GROOTE SCHUUR? Bhavna Patel: “Supply chain management is very strictly regulated within the public sector and our organisation must comply with all of these requirements. Demand management and the entire supply chain process is under the control of our very firm, no-nonsense Finance Director, Mrs Annelise Bezuidenhout. She ensures that we comply, but at the same time, that all the clinical needs are met.

“While it is important to have a supplier relationship, we also need a transparent system of doing business to ensure fairness. All our procurement is an electronic method of inviting quotes or a formal tender process and we are bound by these regulations.

The only supplier relationship we might have is when we have standardised equipment to one make or where there is a sole supplier.”

CELEBRATING ONE OF SOUTH AFRICA’S MOST RENOWNED HOSPITALS 2 | Africa Outlook issue 84

1st, the first coronavirus patient arrived at GSH. And after that it was all hands on deck.

As cases increased, the pandemic took its toll on the staff.

“They had to deal with their own fear; with the fear of infecting their family members, some of whom were susceptible; with many patient deaths – some prolonged, some too quick; with calling family members and only speaking to them on the phone as they could not visit the patient while in hospital; with working in teams; with being totally outside of their comfort zones and needing to adapt to this fairly quickly,” Patel explains.

In response to this, the CEO ensured that staff received counselling and support from an onsite wellness team, and that relief teams were in place when COVID-19 cases rose among the team. She also ensured that she and her fellow management were “leading from the front” – being visible and

HEALTHCARE

Boston Scientific Boston Scientific transforms lives through innovative medical solutions that improve the health of patients around the world.

IT TAKES IMAGINATION TO MAKE SCIENCE MORE GROUNDBREAKING.

As a global medical technology leader for 40 years, we advance science for life by providing a broad range of high performance solutions that address unmet patient needs and reduce the cost of healthcare.

That’s the difference between making devices and making progress.

For more information, visit: www.bostonscientific.com and connect on Twitter and Facebook.

An uncompromising pursuit of excellence. An unwavering focus on solutions that will make the most difference for patients.

Intently listening and collaborating side-by-side with clinicians to understand their most complex problems. These are the principles for every product, solution and relationship we build. It’s what we do every day to advance science for patients, for life.

To learn more about what it takes to advance science for life, visit www.bostonscientific.com

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Africa Outlook issue 84 | 3

supportive, despite the anxieties they also faced.

Another difficulty was ensuring smooth supply chain management throughout the pandemic; deliveries of PPE and consumables needed to be planned well in advance. According to Patel, this proved challenging as the hospital’s regular suppliers were not

always able to deliver.

“Our relationships held us in good stead. Simple historical factors, such as ensuring that we always paid the supplier within the required timeframe, speaking personally to certain company representatives and bulkordering together with other hospitals assisted us to meet the needs of our

18 | Africa Outlook issue 84

patients and staff,” the CEO explains.

Despite difficulties with supply – and the need to be wary of companies who made promises they couldn’t deliver – GSH managed to stay within the year’s budget.

As well as managing the situation in the hospital, GSH’s expert staff are collaborating with others around the Africa Outlook issue 84 | 19

Groote Schuur Hospital has told its story.

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