Africa Outlook - issue 85

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

Issue 85

Banking on

BLOOD How South Africa’s Western Cape Blood Service continues to collect, process and deliver life-saving blood products

INDWE RISK SERVICES Embracing digitisation

JAM CLOTHING From a moment of inspiration to 111 South African stores

COMPAGNIE SUCRIÈRE SÉNÉGALAISE Securing self-sufficiency in sugar

Kagiso Khaole, Chief of Staff and Head of Content and Services at Samsung Africa, talks about the tech giant’s work to deliver affordable technology to African communities

North America Outlook magazine WIND RIVER

TECHNOLOGY

THE CRITICAL ENABLER AT THE INTELLIGENT EDGE WIND RIVER

Portfolio edition

INCHCAPE SHIPPING SERVICES

Leveraging technology to provide international transparency in the shipping industry

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MWC19

Mobile World Congress provided the ultimate forum showcasing innovation

How Wind River software continues to lead the way in today’s hyperconnected and autonomous era

NASA Jet Propulsion Laboratory’s (JPL) Mars Exploration Rover, Spirit, powered by Wind River technology, successfully landed on Mars at approximately 8:35 p.m. PT, January 3, 2004

I like to think I anticipated the advancement of connectivity and digital transformation several decades ago – it would make me a visionary!

“But the fact of the matter is that when I started in the industry, connectivity was very simple and slow. I did envisage back then that speed and complexity would increase exponentially, but what I didn’t see coming was wireless becoming mainstream, the ability to connect with very little hardware, and the critical role the edge would play.”

Visionary or not, Michel Genard is better placed than most to discuss the hyperconnected era that we live

Genard is VP of Product for Wind River, a US-based global leader in delivering software for connected systems at the intelligent edge – an organisation which has been fully immersed in the above picture for the best part of 40 years.

“I started as an engineer and am an engineer by design,” he recalls. “What inspired me then was the desire to design and create. I am from a generation where electronics and software were starting to become mainstream, when the combination of hardware and software enabled you to do so many new things.

“What fascinated me in joining Wind River was discovering the almost invisible software that is critical to the functioning of systems which cannot fail.”

This, in short, is what positions Wind River so strongly in today’s ever-evolving connected world.

The company’s vast portfolio of software solutions is accelerating the digital transformation of critical infrastructure systems found across a tremendous variety of verticals, renowned for meeting the strictest standards in safety, security, performance and reliability.

Wind River software has been ensuring can’t-fail systems remain operational for almost four decades, the company leading the way at the intelligent edge in a hyperconnected and autonomous era Writer: Tom Wadlow | Project Manager: Vivek Valmiki

in today.

Last year surpassed the 20 billion mark in terms of the number of devices connected to the internet, with estimates suggesting that figure will rise to an extraordinary 300 billion

And while the nature and scale of connectivity has drastically changed over 40 years and led the firm to continually adapt and evolve, Wind River’s basic premise remains the same – to ensure customers’ mission critical devices and systems work.

“What makes Wind River unique is our relevance and opportunity at the intelligent edge,” says Genard, who set up the organisation’s first European office in the 1980s. “This means our technology plays an essential role from the device edge to the infrastructure edge, where you are going to have small footprint cloud deployment near the infrastructure – making sure all of those critical elements work.”

Airbiquity® Airbiquity® and Wind River® are collaborating to integrate key technologies for the development of an end-to-end software lifecycle management solution for connected and autonomous vehicles, spanning vehicle to cloud. The solution enables secure and intelligent over-the-air (OTA) software updates and data management.

Proper and proactive management of software over the course of a vehicle’s

lifecycle is becoming increasingly by as soon as 2030. important to enhance performance, value, and address safety In monetary terms, the opportunity maintain and security threats. Using OTA, automotive OEMs can securely is also gargantuan. For instance, the transmit diagnostic and operational data and efficiently deploy software global digitalBRINGING transformation market updates 5G TO THE EDGE to mitigate recall expenses The 5G dynamic is, for Genard, was valued at almost $262 billion in and enable new vehicle features. something of a perfect storm for the Together, Wind River and Airbiquity company. Arguably the single greatest 2018 and is expected to breach $1 provide the automotive industry technology buzzword or trend of at an open and flexible OTA solution trillion by 2026, growing at5Gan averagecombining market-leading software least the last two years, is begintechnology components to create transform the way we live, rate of somening 18 to percent a year. a comprehensive, interoperable, work and interact on a meaningful pre-validated OTA solution backed by In 2016 the global Within thescale. vast world of 5G infrastructhe expertise of two industry-leading ture market was worth a little over half software technology companies. connectivity,aa fundamental and billion dollars – by 2025 that figure is • Wind River is contributing Edge projected to reach almost $23 billion.

Sync, a highly modular OTA update exponentially growing category is A gamechanger here, according to and software lifecycle management solution Genard, is network slicing. edge computing.

“5G is not just another G, i.e. a super • Airbiquity is contributing In 2017, theboosted global value of this spe- OTAmatic®, a cloud-based bandwidth version of 3G and OTA service including OTA 4G,” he explains. “It was always going cialist marketto was measured at $1.73 orchestration, campaign be fast. Rather, the intriguing thing management, software and data about 5G is the is topology of the netbillion, a figure which forecast to management, and Uptane-based work, and the slicing of the 5G network security framework capabilities rise to more than $28portions billion by 2027, that will allow of the network An integrated solution combining to be used for specific use cases. growing at an average rate of some 35Wind River Edge Sync and Airbiquity “You can aggregate and divide OTAmatic also has applicability to multiple nonautomotive IoT sectors, different parts of the network and this percent a year.

Ian Pearson, the President of Ford Romania discusses a 6,000-strong workforce and state-of-the-art Craiova plant

122 | EME Outlook issue 35 Michel Genard, VP of Product for Wind River

creates a massive opportunity to really exploit the advantages of IoT, autonomous technology and a great many other things that may previously have been difficult to scale.

“5G is going to make all of this possible at a more affordable, accessible EME Outlook issue 35 | price, and Wind River can bring the reliability required to successfully scale 5G networks.”

such as medical, industrial, aerospace, military, and telecommunications.

www.airbiquity.com

Portfolio edition

1191 Second Avenue | Suite 1900 | Seattle, WA 98101

Web www.airbiquity.com

Email contact@airbiquity.com

Phone +1 206 219 2700

© Airbiquity 2020. Airbiquity® and OTAmatic® are trademarks of Airbiquity Inc. All other products and brand names may be trademarks or registered trademarks of their respective owners. Specifications are subject to change without notice.

© Airbiquity 2020. Airbiquity® and OTAmatic® are trademarks of Airbiquity Inc. All other products and brand names may be trademarks or registered trademarks of their respective owners. Specifications are subject to change without notice.

© Airbiquity 2020. Airbiquity® and OTAmatic® are trademarks of Airbiquity Inc. All other products and brand names may be trademarks or registered trademarks of their respective owners. Specifications are subject to change without notice.

5G networks.” reliability required to successfully scale price, and Wind River can bring the EME Outlook issue 35 | sible at a more affordable, accessible “5G is going to make all of this posbeen difficult to scale. other things that may previously have omous technology and a great many exploit the advantages of IoT, autoncreates a massive opportunity to really different parts of the network and this “You can aggregate and divide to be used for specific use cases. that will allow portions of the network work, and the slicing of the 5G network about 5G is the topology of the netto be fast. Rather, the intriguing thing 4G,” he explains. “It was always going boosted bandwidth version of 3G and “5G is not just another G, i.e. a super Genard, is network slicing.

A gamechanger here, according to projected to reach almost $23 billion. a billion dollars – by 2025 that figure is ture market was worth a little over half scale. In 2016 the global 5G infrastrucwork and interact on a meaningful ning to transform the way we live, least the last two years, 5G is begintechnology buzzword or trend of at company. Arguably the single greatest something of a perfect storm for the The 5G dynamic is, for Genard,

Web www.airbiquity.com

Email contact@airbiquity.com

Phone +1 206 219 2700

New B2B publication launching December 2020

hyperconnected and autonomous era How Wind River software continues to lead the way in today’s

SERVICES SHIPPING INCHCAPE

Corporate Headquarters

© Airbiquity 2020. Airbiquity® and OTAmatic® are trademarks of Airbiquity Inc. All other products and brand names may be trademarks or registered trademarks of their respective owners. Specifications are subject to change without notice.

32 | EME Outlook issue 35

122 | EME Outlook issue 35

6,000-strong workforce and state-of-the-art Craiova plant Ian Pearson, the President of Ford Romania discusses a

shipping industry transparency in the to provide international Leveraging technology

Since the beginning of connected car Airbiquity has thrived at the increasingly trafficked intersection of automotive devices, software technology, and the cloud. For more than 20 years we’ve enabled automotive grade programs and ecosystems of innovative hardware and software to be integrated and managed—at scale. That’s why over 40 million vehicles from leading automakers around the world have been built with Airbiquity software and cloud-based service delivery capability.

Turn to Airbiquity to make your connected car program vision a reality.

123

32 | EME Outlook issue 35

for Wind River Michel Genard, VP of Product

Intelligent Connectivity Is In Our DNA

showcasing innovation provided the ultimate forum Mobile World Congress

MWC19

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at approximately 8:35 p.m. PT, January 3, 2004 technology, successfully landed on Mars Exploration Rover, Spirit, powered by Wind River NASA Jet Propulsion Laboratory’s (JPL) Mars

the hyperconnected era that we live better placed than most to discuss Visionary or not, Michel Genard is would play.” ware, and the critical role the edge ability to connect with very little hardwireless becoming mainstream, the tially, but what I didn’t see coming was complexity would increase exponenenvisage back then that speed and tivity was very simple and slow. I did when I started in the industry, connec“But the fact of the matter is that me a visionary! several decades ago – it would make and digital transformation advancement of connectivity I like to think I anticipated the

will rise to an extraordinary 300 billion with estimates suggesting that figure devices connected to the internet, mark in terms of the number of Last year surpassed the 20 billion in today.

www.airbiquity.com

military, and telecommunications. such as medical, industrial, aerospace,

percent a year. multiple nonautomotive IoT sectors, OTAmatic also has applicability to growing at an average rate of some 35Wind River Edge Sync and Airbiquity An integrated solution combining rise to more than $28 billion by 2027, security framework capabilities management, and Uptane-based billion, a figure which is forecast to management, software and data orchestration, campaign cialist market was measured at $1.73 OTA service including OTA In 2017, the global value of this spe- OTAmatic®, a cloud-based • Airbiquity is contributing edge computing. solution and software lifecycle management mance and reliability. exponentially growing category is Sync, a highly modular OTA update standards in safety, security, perfor• Wind River is contributing Edge renowned for meeting the strictest Writer: Tom Wadlow | Project Manager: Vivek Valmiki connectivity, a fundamental and software technology companies. a tremendous variety of verticals, the expertise of two industry-leading Within infrastructure systems found across the vast world of pre-validated OTA solution backed by the digital transformation of critical a comprehensive, interoperable, rate of some 18 percent a year. software solutions is accelerating technology components to create The company’s vast portfolioby of 2026, growing at an averagecombining market-leading software trillion an open and flexible OTA solution ing connected world. provide the automotive industry 2018ever-evolvand is expected to breach $1 River so strongly in today’s Together, Wind River and Airbiquity This, in short, is what positions Wind was valued at almost $262 billion in and enable new vehicle features. fail.” to mitigate recall expenses 5G TO THE EDGE functioning of systems which cannot global digitalBRINGING transformation market updates data and efficiently deploy software invisible software that is critical to the diagnostic and operational isthe also gargantuan.

For instance, the transmit those critical elements work.”

River was discovering almost automotive OEMs can securely “What fascinated me in joining Wind the infrastructure – making sure all of security threats. Using OTA, In monetary terms, the opportunity and maintain value, and address safety small footprint cloud deployment near many new things. important to enhance performance, and software enabled you to do so edge, where you are going to have by as soon asture 2030. lifecycle is becoming increasingly

and autonomous era intelligent edge in a hyperconnected the company leading the way at the operational for almost four decades, ensuring can’t-fail systems remain Wind River software has been

when the combination of hardware were starting to become mainstream, ation where electronics and software design and create. I am from a generinspired me then was the desire to engineer by design,” he recalls. “What “I started as an engineer and am an best part of 40 years. immersed in the above picture for the organisation which has been fully systems at the intelligent edge – an delivering software for connected River, a US-based global leader in Genard is VP of Product for Wind

from the device edge to the infrastructechnology plays an essential role office in the 1980s. “This means our up the organisation’s first European intelligent edge,” says Genard, who set our relevance and opportunity at the “What makes Wind River unique is devices and systems work. ensure customers’ mission critical basic premise remains the same – to tinually adapt and evolve, Wind River’s over 40 years and led the firm to conconnectivity has drastically changed And while the nature and scale of

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Turn to Airbiquity to make your connected car program vision a reality. built with Airbiquity software and cloud-based service delivery capability. million vehicles from leading automakers around the world have been software to be integrated and managed—at scale. That’s why over 40 automotive grade programs and ecosystems of innovative hardware and technology, and the cloud. For more than 20 years we’ve enabled increasingly trafficked intersection of automotive devices, software Since the beginning of connected car Airbiquity has thrived at the

software over the course of a vehicle’s Proper and proactive management of management.

(OTA) software updates and data secure and intelligent over-the-air vehicle to cloud. The solution enables and autonomous vehicles, spanning management solution for connected of an end-to-end software lifecycle technologies for the development collaborating to integrate key Airbiquity® and Wind River® are

Building on the global success of our sister titles – APAC Outlook, Africa Outlook and Is In Our DNA Connectivity EME Outlook – Outlook Publishing is proud to be launching a dedicatedIntelligent platform for businesses in the United States and Canada to tell their success stories.

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WELCOME

Life Fuel

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

No health service can operate effectively without

PRODUCTION Art Director: Stephen Giles steve.giles@outlookpublishing.com

a reliable, safe and plentiful supply of blood.

Senior Designer: Devon Collins devon.collins@outlookpublishing.com

It is estimated that blood accounts for roughly

Junior Designer: Matt Loudwell matt.loudwell@outlookpublishing.com

seven percent of the bodyweight of an average

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 Joe Palliser joe.palliser@outlookpublishing.com Vivek Valmiki vivek.valmiki@outlookpublishing.com SALES MANAGERS Donovan Smith donovan.smith@outlookpublishing.com Josh Hyland josh.hyland@outlookpublishing.com Matt Cole-Wilkin matt.cole-wilkin@outlookpublishing.com Ryan Gray ryan.gray@outlookpublishing.com PROJECT MANAGERS David Knott david.knott@outlookpublishing.com Kyle Livingstone kyle.livingstone@outlookpublishing.com Lewis Bush lewis.bush@outlookpublishing.com Sam Love sam.love@outlookpublishing.com

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person, adults containing around five litres of blood inside their bodies. The loss of blood can therefore be fatal, meaning hospitals must be stocked with enough to treat their patients without the danger of running out.

In South Africa’s Western Cape, the Western Cape Blood Service continues to collect, process and deliver life-saving blood products to public and private healthcare providers in spite of the challenges presented by the coronavirus pandemic.

The subject of this edition’s cover, we caught up with CEO Dr Greg Bellairs, one of the first questions being how it has handled the disruption caused

by COVID-19.

“We were fortunate to have sufficient reserves to weather the financial storm, and the early uncertainty levels, which were high, have been replaced by recent experience demonstrating that although sales and income were reduced, we now know to what extent, and are able to anticipate the impacts of later waves of the pandemic,” he tells us.

“Despite our financial challenges, we recognise that we are fortunate to operate in the healthcare space, which somewhat insulated us from the financial devastation faced by organisations which could not operate at all during the lockdown. One of our core goals was to not retrench any staff, and to pay everyone in full – we were able to achieve this.”

This issue of Africa Outlook also sees the launch of a new spotlight series of insights, honing in on Botswanan mining and Kenyan manufacturing, featuring interviews with leading industry associations.

Elsewhere, Kagiso Khaole, Chief of Staff and Head of Content and Services at Samsung Africa, talks to us about the multinational giant’s new range of affordable smartphones which are helping to connect consumers across the continent, while payments player DPO Group’s founder Eran Feinstein tells us why he swapped a career in aviation to start a wholly new and different venture.

This month’s magazine also includes exclusive interviews with JAM Clothing, Indwe Risk Services, Frost & Sullivan, New Southern Energy and Landmark Africa.

Enjoy the read!

Tom Wadlow Editorial Director, Outlook Publishing Africa Outlook issue 85 | 3

CONTENTS

10 24

32 REGULARS

6 NEWS Around Africa in seven stories

14

24 Botswana Mining

8 EXPERT EYE

Exploring the need for diversification in Botswana’s mining sector

The transformative effect of cloud computing on manufacturing

32 Kenya Manufacturing

BUSINESS INSIGHT

10 Technology

Connecting a Continent A Q&A with Kagiso Khaole, Chief of Staff and Head of Content and Services at Samsung Africa

14 Finance

From Pilot to PSP

18

INDUSTRY SPOTLIGHTS

How Eran Feinstein swapped a career in aviation for his own payments venture

TOPICAL FOCUS

18 Transport networks

Making Africa more Accessible The challenges and opportunities of Africa’s Standard Gauge Railway

Examining a growing sector with the Kenya Association of Manufacturers

EVENTS

118 Nigeria Mining Week A digital welcome to the region’s mining players

120 Africa Energy Forum Relocating to Amsterdam

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

124 Digital African Utility Week and POWERGEN Africa The largest power and water utilities exhibition, online

126 THE FINAL WORD If you could offer one piece of advice for a young entrepreneur entering your industry, what would it be?

4 | Africa Outlook issue 85

AFRICA OUTLOOK MAGAZINE

44 66 78

F E AT U R E S

42 SHOWCASING LEADING COMPANIES

98 Frost & Sullivan Africa

Tell us your story and we’ll tell the world

Helping businesses to realise their potential

HEALTHCARE

44 Western Cape Blood Service Banking on Blood

A story of collaboration and continuity during COVID-19

RETAIL

66 JAM Clothing

The Real Fashion Deal From a moment of inspiration to 111 South African stores

Intelligent Growth

90

ENERGY & UTILITIES

102 New Southern Energy Electrifying Africa with Renewable Energy

Catalysing the rise of solar power

CONSTRUCTION

110 Landmark Africa Building Landmarks

Creating unique mixed-use property developments in Africa

AGRICULTURE

78 Compagnie Sucriere Senegalaise (CSS) Securing Self-Sufficiency

98

A Senegalese socioeconomic stalwart

FINANCE

90 Indwe Risk Services

Changing the Face of Insurance Embracing digitisation in insurance and risk services

110 Africa Outlook issue 85 | 5

NEWS Around Africa in seven stories…

TECHNOLOGY

Kenyan startup WorkPay raises $2.1 million in seed funding

CONSTRUCTION

SENEGAL’S $6 BILLION AKON CITY GIVEN THE GREEN LIGHT T H E SEN EGA LESE American RnB singer Akon has launched a sustainable, futuristic real estate project near Mbodième, a coastal village in west Senegal. Akon City will consist of a shopping mall, restaurants, a hospital, a school, a police station and more, all of which will be powered by a photovoltaic solar power plant. The artist was inspired by the fictional kingdom of Wakanda in the Marvel movie Black Panther.

The cost of the project amounts

to $6 billion (nearly 80 percent of Senegal’s 2020 budget) and is integrated into the country’s tourism vision. It has been designated a special tax zone by the Senegalese government, a move likely to attract foreign investors.

Akon City is being implemented by consulting and engineering firm KE International and designed by architecture firm Bakri & Associates Development Consultants.

Construction will begin in Q1 of 2021.

WO R K PAY – a Kenyan start-up which provides cloud-based HR, payroll and workforce management systems – has raised $2.1 million in funds from Kepple Africa, Y Combinator and other investors.

The startup was founded by Paul Kimani and Jackson Kibigo in 2017 and known as TozzaPlus. It was initially a full-solutions ERP software company, but in 2018 rebranded and streamlined to focus solely on human resource management software.

Last year, WorkPay was selected for the fourth cohort of the Google for Startups Accelerator Africa. In March it accessed $150,000 in funds from Y Combinator’s Winter Batch. In this seed round, Y Combinator made follow-up investments.

The startup works with more than 250 SMEs to pay 20,000 employees monthly. It saves between five and 10 percent of payroll costs by eliminating fraud and errors in payroll systems.

OIL & GAS

Go-ahead given to $3.5 billion crude oil pipeline TA N Z A N I A N P R E S I DE N T John Magufuli and his Ugandan counterpart Yoweri Museveni have signed an intention to start implementing the construction of the East African Crude Oil Pipeline (EACOP).

Uganda has discovered around 6.5 billion barrels of oil since 2006 – Total and partners have helped it develop a 1,443-kilometre-long pipeline to transport oil from Hoima, Uganda, 6 | Africa Outlook issue 85

to Tanga, Tanzania, where it can be distributed across the world. The cost of the project is $3.5 billion.

“This is an important step towards the implementation of the project. We, the presidents, have signed and I will see who will delay it,” said Dr Magufuli during a speech.

The two leaders have agreed that Tanzania will receive a 60 percent share of the profits accrued from the pipeline project, as around 80 percent of the pipe will lie on its land.

FINANCE

ECONOMY

WorldRemit to acquire African remittance company Sendwave WO R L D REMIT, A digital, crossborder payments company, has announced plans to acquire appbased remittance company Sendwave in a cash and stock transaction.

Founded in 2014, Sendwave has built a leading and rapidly growing digital payments service in East and West Africa, expanding into Bangladesh this summer. Service users can send money to users to pay for necessities, healthcare and school fees. “‘Sendwave’-ing money is as easy as sending a text – one less worry for the hard-working and generous diaspora communities that we serve. We are

AFRICA’S FREE TRADE HQ OPENS IN ACCRA

eager to combine WorldRemit’s wide reach with our recipe for success in areas like Kenya, Ghana, and Nigeria.

Together, we can achieve a better service for current and future users,” said Will Fogel, CEO of Sendwave.

Between June 2019 and 2020, WorldRemit and Sendwave sent approximately $7.5 billion in transfers, which generated around $280 million in revenue.

TH E S E C R E TA R I AT of the African Continental Free Trade Area (AfCFTA) has recently opened in Accra, the capital of Ghana. It was built through a grant of $3.5 million from the African Development Bank.

The opening of these head offices represents a major milestone in the implementation of a major free trade agreement that will encourage intracontinental trade. Trading has been postponed to January 1, 2021, due to the economic ramifications of COVID-19. So far, 54 states have agreed to the AfCFTA – 28 of these have signed the agreement.

S U S TA I N A B I L I T Y

IFC releases $39 million for Engee recycling plant in Nigeria T H E INTERN ATIONAL Financial Corporation (IFC) has extended a $39 million loan to Engee PET Manufacturing Company Nigeria Limited. It will use the financing to build a plant that derives more than 20 percent of its raw material from local plastic waste.

According to estimates, the new plant is expected to double the number of recycled plastic bottles

in Nigeria, redeploying up to 30,000 tons of used plastic bottles a year.

Nigeria generates around 2.5 million tonnes of plastic waste per year, 70 percent of which ends up in landfills, sewers and water bodies.

“The plant’s collection, cleaning and treatment processes are sufficient to accelerate the evolution of plastics recycling in the country and support jobs along the recycling value chain. This will be a great victory for the Nigerian economy and its environment,” said Alexander Gendis, Managing Director of Engee Manufacturing.

H E A LT H C A R E

FLYING DOCTORS TO RAISE $1 BILLION TO IMPROVE HEALTHCARE ACROSS AFRICA F LY I N G DO C TO R S Healthcare Investment Company is in process of setting up a $1 billion fund, which it will then invest in healthcare and wellness across Africa.

“We are raising in three tranches within four years. The first $200 million by the end of first quarter next year, and then $300 million and $500 million,” said Ola Brown, Managing Partner and Co-Founder, said in an interview.

Brown founded Flying Doctors – initially an air ambulance service – 10 years ago, and later set up the investment company to fund healthcare firms. It now has a portfolio estimated at $200 million, with companies including LifeStore Pharmacy and Helium.

Africa Outlook issue 85 | 7

EXPERT EYE

The transformative effect of cloud computing on manufacturing Cloud computing is a powerful technology enabling companies to become more productive, improving both customer communication and supply-chain performance Written by: JP van Loggerenberg, Chief Technology Officer, SYSPRO

T

oday, manufacturing is being transformed rapidly by changes in ICT, AI, robotics fields, cyberphysical systems (CPS), and increasingly powerful IoT devices.

The integration of these new technologies has meant that data usage has grown exponentially; however, current legacy systems are often limited in providing agility, flexibility and scalability. As such, a cloud strategy is seen as a logical next step due to its ability to store masses of data, while offering a more flexible solution.

Google CEO Eric Schmidt coined the term “cloud computing” in 2006, with its application mushrooming since then. This has resulted in an increasing number of cloud providers, with the market growing by over 30 percent in 2019.

However, cloud tactics must be embraced by the organisation as a whole to be effective. A cloud strategy should not focus solely on resolving technical issues, but aim to promote, develop, and extract tangible business benefits.

According to a study entitled the ‘3rd State of Manufacturing Technology’, manufacturers are using cloud for productivity applications (90 percent); new product introductions (45 percent); to improve communications and connectivity 8 | Africa Outlook issue 85

with customers (60 percent); and to improve supply-chain performance (60 percent).

The cloud also offers manufacturers scalability, operational efficiency, application and partner integration, data storage, management, analytics and enhanced security. At the most foundational level, cloud computing influences how manufacturers manage their operations, from ERP

“WHEN ADOPTING A CLOUD FIRST APPROACH IT IS CRITICAL TO BEAR IN MIND THAT ‘CLOUD FIRST’ DOES NOT NECESSARILY MEAN ‘CLOUD ONLY’”

and financial management to data analytics and workforce training. In fact, Gartner predicts that by 2025 over half of ERP spend will be on cloud deployment.

Despite its various benefits, a cloud first strategy also poses new challenges and requires different decisions. Gartner stresses that these decisions start with “an understanding

of the type of application and its technical characteristics, the needs and constraints of the associated data, and the integration of the application and data with other systems”.

When adopting a cloud first approach it is critical to bear in mind that ‘cloud first’ does not necessarily mean ‘cloud only’. Whether you are a manufacturer evaluating a new ERP system or considering how to make your existing ERP implementation better, an important issue to consider is where your software should run, namely in the cloud or on-premises.

While some applications can migrate successfully to the cloud, there is a strong justification to keep some applications on-premises in their own infrastructure environments. This is simply because it takes time for an enterprise to develop the skills necessary to run a successful cloud operation. A cloud project is likely to be a multi-year effort, especially as it will take the organisation time to leverage all the benefits associated with cloud applications.

For a cloud first strategy, there are a few potential options which should be considered: public cloud, on-premises and hybrid.

Public cloud Running your ERP system on a public cloud platform such as Microsoft Azure means you only pay for the resources used. Also, costs rise and fall depending on how the cloud infrastructure is deployed. The initial benefit, of course, is saving on your own investment in infrastructure, which can be a significant sunk cost.

For manufacturers that operate in several locations, or across multiple time zones, a cloud ERP means everyone has access to a single system, rather than running their own local instances. This results in major benefits in terms of centralised reporting, stronger governance and compliance, and improved collaboration across the enterprise.

A single system also reduces the need for multiple skillsets to support different locations.

Businesses that opt for the public cloud still need to take responsibility for managing their resources and developing the skills to do it

effectively. This requires a level of managed services.

A common model for running ERP in a public cloud is the Infrastructureas-a-Service model (IaaS). The responsibility for the components of this service is divided between the customer and the cloud provider.

On-premise Specific machine interfaces may be highly customised and difficult to implement via the cloud in some manufacturing environments.

Although it is rare, public cloud platforms have been known to suffer downtime. Downtime is the single largest source of lost production time, affecting productivity, impacting customer service and business goodwill.

An organisation can maintain full control by running its ERP system on-premises. This is critical for highly regulated industries with privacy and compliance concerns, where a measure of first-line control is essential. Hence companies with regulatory concerns have full accountability in the knowledge that they know exactly where their data is at all times, and how secure it is.

Hybrid The ‘best-of-both-worlds’ option is to separate your ERP into both on-premises and cloud components.

Collaborating with suppliers in terms of quotes and orders is simpler via a cloud portal. Customers and salespeople are assured of up-to-date information on deliveries and pricing via the web or mobile devices if this is cloud-based.

Organisations are turning to cloud-enabled ERP to drive ongoing innovation, increase agility and responsiveness, achieve greater elasticity and scalability, accelerate product development and reduce costs.

With manufacturing and distribution at the heart of their concern, SYSPRO customers have the ultimate flexibility to select a cloud ERP solution that best meets their specific requirements – whether on-premises, in the cloud, or hybrid. This flexibility allows them to transition practically, and at their pace, with easy, cloud-enabled access to the latest available technologies such as Bots, AI, and IoT.

ABOUT THE EXPERT JP van Loggerenberg is the Chief Technology Officer at SYSPRO, and has been instrumental in standardising and rationalising processes and systems within SYSPRO. JP started his career at SYSPRO in 2013 as the Product Owner Financial. His extensive exposure to strategic planning, business process re-engineering, and in information technology infrastructure has allowed him to construct a Services Practice within the SYSPRO business. Within Services, JP focuses on several key areas, namely information technology, consulting and support.

He holds a Bachelor of Commerce (Law) degree, and a Master’s Degree in Business Leadership (MBL) with a specialisation in information technology.

Africa Outlook issue 85 | 9

SAMSUNG AFRICA

CONNECTING A CONTINENT

Kagiso Khaole, Chief of Staff and Head of Content and Services at Samsung Africa, talks about the tech giant’s ongoing work to deliver affordable technology to African communities Edited by: Tom Wadlow

10 | Africa Outlook issue 85

TECHNOLOGY

T

he African technology industry is rapidly evolving.

According to research by Forbes, the number of so-called tech hubs – incubator facilities, innovation centres and accelerators – has risen by 50 percent over the past few years to more than 640 such sites in 2020.

The continent is home to 1.2 billion people, a large proportion of them being young and eager to embrace an increasingly digital way of life.

Improving technology infrastructure and access to smart connectivity devices is therefore paramount to driving progress - progress which needs to be made with Africa’s internet penetration sitting at just 39.3 percent in Q1 2020, well below the global average of 58.8 percent.

Global giant Samsung is a busy player on the continent, and Kagiso Khaole is the company’s regional Chief of Staff and Head of Content and Services.

As Head of the Content and Services Group in Africa, he leads a talented team responsible for the continuous evolution the Samsung ecosystem which spans across AI, IoT, health, gaming, payments, insurance, mobile security and 5G networks.

Meanwhile, the Chief of Staff remit covers two key areas of responsibilities which span all functional areas of the organisation, including strategic initiative ownership and driving organisational effectiveness.

Ultimately, the aim here is to serve as a linchpin within the executive structure and provide strategic counsel to the President of the organisation to solve immediate and long-term challenges.

A demanding, far-reaching brief, but one which fulfils Khaole’s long-held passion for seeing technology deliver positive change. He took time out to answer our questions.

Africa Outlook (AfO): What sparked your interest in technology-based career?

Kagiso Khaole (KK): Technology is that boundless canvas which gives Africa Outlook issue 85 | 11

SAMSUNG AFRICA

“I BELIEVE IN THE POWER OF APPLIED TECHNOLOGY TO SOLVE OUR TOUGHEST HUMAN ISSUES”

ideas an opportunity to become a reality. I believe in the power of applied technology to solve our toughest human issues and lift individuals, societies and entire countries to prosperity. My affinity to technology was formed at very early age, where many popular cartoons and toys revolved around robots and advanced mechanical creations of both heroes and mad scientists. One of my favourite childhood hobbies was repurposing old electronic toys and other gadgets in the house to make new toys. In hindsight, it got me into a lot of trouble but fuelled my innate curiosity of the world around me and ignited my love for the digital world I work in now.

AfO: What role can technology and Samsung play in creating a better South Africa?

KK: We believe technology can change lives. It empowers people to do what they couldn’t do before and connect with the world in new ways.

For Samsung, it’s about offering purposeful innovation that enhances South Africans’ lives.

We listen to the needs of our consumers and understand that they are looking to not just buy products but experience the benefits 12 | Africa Outlook issue 85

– convenience, peace of mind, and enjoyment. They are looking for technology to help them fully experience life. These are just some of the emerging factors that drives Samsung’s thinking of innovation.

We continue to turn innovative products into seamless experiences and memorable moments – and make the technology affordable to more people. As we follow this innovation philosophy, we can inspire people to ‘Do What You Can’t’.

Additionally, under Samsung’s corporate citizenship vision, we are heavily invested in programmes that will help South Africa’s youth gain necessary academic and professional skills useful for the fourth industrial revolution.

This is an integral part of Samsung’s mission to empower South African communities to play a bigger role in the economy. It’s innovation for all – empowerment that will make a real difference in the country and continent. Samsung is primarily focused on education such as the Samsung Engineering Academy and bursary programmes, which are

focused on preparing youth to place their future in their own hands. This is aligned with Samsung’s global mission, ‘Enabling People’, which is aimed at aiding people, discovering and developing their full potential.

Every time we open new facilities like a Future-Innovation Hub in a university or a technology centre in a school, we are taking another step forward to making life better for all South Africans.

AfO: I see you recently launched three affordable devices. How important is it to produce smartphones which are accessible and affordable?

KK: It is essential. To turn Africa’s potential into power, we must place cutting-edge technology in the hands of the youth and the many people who will shape the future of this continent. We also want to help solve social problems and build a better world for everyone. This is our commitment – enabling people to achieve more. To create this lasting change, we will continue to listen and create ideas and solutions that make a real difference in Africa and defy barriers to progress. Through affordable devices such as the Galaxy A51, A71 and Note10 Lite we can create a better future for all. These devices represent our continuous effort to deliver industry-leading innovations, from performance and power to intelligence and services – distinct premium features offered with unrivalled value. Now, importantly, the youth have access to longerlasting batteries, smarter cameras and incredible performance. It opens up a world of possibilities. This is great progress.

AfO: How crucial is mobile money and Samsung Pay to opening up access to financial services in Africa?

TECHNOLOGY terms of Samsung and its impact on socio-economic development across the region?

KK: There is no doubt that the fourth industrial revolution is fast approaching and fortunately, with a broad youth base, access to global value chains as technology suppliers and the chance for SMEs to capitalise on new technologies, Africa is in a positive position to seize the opportunities ahead. Samsung’s ongoing vision is to develop skilled electronics technicians and engineers by bridging the current skills gap.

Engineering academies across Africa have already seen thousands of students graduate with hands-on, practical skills at no cost, enabling them to move into jobs after they graduate.

KK: It’s the future so it’s very important. The use of mobile money and Samsung Pay has grown exponentially over the past few years, making Africa the global leader in mobile money innovation, adoption, and usage.

Samsung Pay has, in turn, brought a new level of convenience and security when making contactless mobile payments. Armed with the ever-present smartphone, you can now pay with your smartphone in a way you just couldn’t before.

It’s this kind of convenience where technology can make a massive difference in our lives. It allows for greater financial inclusion that can benefit more people than ever before. The fact is, Sub-Saharan Africa is the only region in the world where close to 10 percent of GDP in transactions occur through mobile money.

This compares with just seven percent of GDP in Asia and less than two percent of GDP in other regions.

Therefore, Africa is rich with the potential to adopt a future-focused idea sooner than the rest of the world and enhance the possibilities. Because most African users now rely on mobile

Affordable devices make technology available to more people payments to send and receive money domestically, they can increasingly take advantage of new services to also send and receive money internationally.

In addition, they use mobile money to pay their bills, receive their wages, and pay for goods and services. Mobile money is the future and Africa is taking the lead in its many uses. For Africa, it’s a game-changer.

In the decade to come, we want to see the results of these and many other programmes. Samsung will also continue to design cutting-edge products that are accessible to more people in more ways. The power of technology in the hands of inspired and talented Africans is the dream. We hope they, in turn, give back to their communities to build an empowered and prosperous Africa.

AfO: If you could fast forward 10 years, what would you like to see in Africa Outlook issue 85 | 13

DPO GROUP

The dynamic and fast-growing DPO Group is making waves in Africa’s payments market, its Co-Founder and CEO Eran Feinstein switching from a career in aviation to start his own venture Written by: Dani Redd

A

frica has one of the most underpenetrated yet fastest growing online payments markets in the world.

It expanded at a rate of around 39 percent year on year from 2015 to 2020 and, according to a recent report by the GSMA, 2018 saw a wave of reforms in Nigeria, Ethiopia and Egypt which could lead to over 110 million 14 | Africa Outlook issue 85

FROM PILOT TO PSP new mobile money accounts being opened over a five year period.

It is also a market that DPO Group is currently making waves in, the company recognised as one of Africa’s leading online commerce platforms.

Testament to the group’s success is that it was recently part of a landmark deal – Network International will be acquiring 100 percent of DPO Group, which will continue operating under its own brand.

“This deal represents a significant milestone for the pan-African payments landscape and the customers and businesses we serve,” explains Eran Feinstein, CEO of DPO Group.

“Combining the two companies will allow us to broaden our offering for new and existing customers, significantly improving capacity for

Africa’s merchants to do business, not only across the continent, but in the Middle East as well as globally.”

Both Network International and Apis Partners (DPO Group’s investor company) have nothing but positive words about Feinstein and his cofounder, Offer Gat. “Eran and Offer are outstanding and visionary entrepreneurs who have built DPO into a truly world class business in a very short period of time,” explains Matteo Stefanel, Managing Partner and Apis Co-Founder.

MOVING BUSINESS ONLINE DPO Group is one of Africa’s leading payment service providers (PSPs), which works with businesses and individuals across Africa to make online payments using cards, mobile money and e-wallets.

FINANCE

It consists of four companies – DPO, PayGate Plus, PayFast and SiD Secure EFT – working with over 100,000 merchants ranging from airlines to restaurants, and boasts a 300-strong team with a presence in 19 African countries. These include South Africa, Botswana, Kenya, Mauritius, Nigeria, Namibia and more.

The business has undeniably grown at an exponential rate, but Feinstein’s career history comes as somewhat of a surprise.

“I began my career as an airline pilot,” he explains. “Then I moved into IT within the aviation industry where I gathered the necessary experience and expertise to start my own business in a sector spanning both of these sectors.”

On a visit to Nairobi in 2006, Feinstein was approached by a Kenyan airline representative who wanted the technology to process online bookings from overseas –

something that wasn’t available in the country at the time. Feinstein and his Co-Founder Gat therefore decided to develop the technology to facilitate this request. Thus, DPO Group was launched as a PSP for airlines and has been expanding and diversifying ever since, now standing as a truly panAfrican initiative.

“Our hunger to find innovative solutions to everyday challenges, coupled with an understanding of the cultural and market differences, helped us launch and build DPO into a force for connectivity and growth in Africa,” the CEO says with pride.

Africa Outlook issue 85 | 15

DPO GROUP

FOUR COMPANIES, ONE DPO GROUP The DPO Group consists of: DPO: A secure payment platform which has PCI DSS level 1 compliance and can process all payment methods and currencies PAYGATE PLUS: Acquired in 2016, this is DPO South Africa’s fully managed solution for online payments, with an easy set up and transactions in one place PAYFAST: This is South Africa’s fastest and most flexible online payments gateway, and was acquired by DPO Group in 2019 SID SECURE EFT: A secure payment method enabling customers to make online payments without a credit card

16 | Africa Outlook issue 85

In recent years, DPO Group has made a shift towards ecommerce, which is now a major new business vertical. Feinstein observes that this market has “huge untapped potential for growth” for two reasons: growing internet use across the continent and an increase in mobile money use.

“Africa continues to be the world leader when it comes to mobile money services. According to the latest GSMA report, 50 million Sub-Saharan Africans created a mobile money account in 2019, bringing the total number of users to 469 million, or 45 percent of global mobile money users,” he explains.

Furthermore, an increasing number of African consumers are accessing the internet. In 2019, there was higher internet usage in Africa than in North America, Latin America and the Middle East. But despite this high demand, African internet penetration is behind the rest of the world, something DPO Group can capitalise on.

And the demand for ecommerce solutions in Africa has risen sharply due to the COVID-19 pandemic.

According to Feinstein, new

“IT IS VITAL FOR BUSINESSES, PARTICULARLY SMALL AND MEDIUM-SIZED ENTERPRISES, TO STAY CONNECTED TO THEIR CUSTOMERS TO ENSURE THEY CAN SURVIVE THE COVID-19 CRISIS AND EMERGE RESILIENT” business account registrations at PayFast have increased 83 percent on last year since the start of lockdown in South Africa in March, when there was a strict curfew and countrywide travel bans in place.

“The COVID-19 pandemic is not only a human tragedy; it is also having a growing economic impact and is forcing companies everywhere to make changes to their businesses,” Feinstein comments.

FINANCE “SMEs are the lifeblood of the economy in Africa and many are already struggling to be visible and trade in this unusual environment, with many of their customers now staying at home.”

It was this sudden necessity for consumer goods in the light of restricted movement that led DPO Group to quickly establish its online DPO Store in partnership with Mastercard.

DPO STORE: BUILDING RESILIENCE THROUGH ECOMMERCE Back in March, DPO launched an ecommerce store powered by Mastercard’s payments gateway technology, which is available in the 19 African

countries DPO Group operates in.

“We have a saying at DPO: ‘If it’s difficult, we’ll do it immediately. If it seems impossible, give us a few weeks!’ Our technology team worked around the clock to find a solution that was robust, secure and affordable,” Feinstein says.

The result is the DPO Store, which develops a free tailor-made website in each merchant’s own branding and includes an integrated digital payment system. According to the CEO, DPO Group aims to get this up and running within 72 hours, thereby fast-tracking a switch to digital.

Although initially aimed at essential services (such as pharmacies and supermarkets), it is now being used by all types of businesses.

“It is vital for businesses, particularly small and medium-sized enterprises, to stay connected to their customers to ensure they can survive the COVID-19 crisis and emerge resilient,” the CEO says.

Feinstein believes that, going forward, ecommerce will be more important than ever. Businesses will need to develop and enhance their online abilities to keep up with rising demand. DPO Store can help merchants overcome challenges that previously faced ecommerce in Africa – including affordability, cybercrime and poor digital infrastructure – by providing an affordable platform linked to DPO’s world-class fraud prevention and risk management platforms.

Since the launch of DPO Store, thousands of transactions have already taken place. Feinstein predicts that more than 5,000 businesses in Africa will be using it. In the future, he hopes to continue capitalising on the success of the growing online retail market in Africa. But also, even more importantly, he aims to help build business resilience to any future global crises.

“As lockdown continues and once the pandemic has passed, we hope to continue to support our merchants, not only to sustain their businesses during the crisis, but also to widen their customer base and create a more resilient and futureproof business model,” the CEO concludes.

Africa Outlook issue 85 | 17

TOPICAL FOCUS

MAKING AFRICA MORE ACCESSIBLE Africa’s Standard Gauge Railway represents a real opportunity for the continent, but construction isn’t without its challenges Writer: Dani Redd

18 | Africa Outlook issue 85

Without infrastructure, there will be no investors. Without investors, there will be no jobs for our youth.”

So said the Kenyan President Uhuru Kenyatta last October, as he launched the second phase of Kenya’s Standard Gauge Railway (SGR) project, a $1.5 billion high-speed railway running from the capital of Nairobi to Naivasha.

The first phase of the SGR project was completed in 2017, following two years of construction. Costing $3.8 billion dollars, the railway stretches

IMAGE: MICHAŁ HUNIEWICZ

TRANSPORT NETWORKS

The Kenya-Uganda Railway was dubbed tge “Lunatic Express” by British news media in the colonial era, largely because of the enormous cost in terms of finance and human life it claimed during its construction. Built towards the end of the 19th century, it was known as a vicious iron snake that slithered its way across the grassy plains of the two countries.

for 300 miles from the port city of Mombasa to the capital of Nairobi.

Both phases of the project were predominantly financed by China Eximbank and built by China Road and Bridge Corporation.

The train running from Mombasa to Nairobi was named the Madaraka Express after the day Kenya attained self-rule – it replaced the colonial era British railway, known as the “Lunatic Express”. Once a slow and shaky ride taking up to a day, the travel time between Mombasa and Nairobi was shortened to just four hours. The new express also had the capacity to transport around half the goods coming into Mombasa Port, compared to previous figures of around five percent.

“We now celebrate not the Lunatic Express but the Madaraka Express, that will begin to reshape the story of Kenya for the next 100 years. I am proud to be associated with this day,” Kenyatta announced.

These railways are part of a more ambitious infrastructure project that will connect to western Kenya and six other East African countries, including Ethiopia and Tanzania. Parts of the network have already been built, including a 756-kilometre railway between Djibouti port to Ethiopia’s capital of Addis Ababa.

GAME CHANGING INFRASTRUCTURE For many people, Africa’s new railways herald wide economic benefits for the continent.

“It’s a big game changer,” said Aly Khan Satchu, a financial analyst based in Nairobi, who was interviewed by CNN about the Kenyan SGR. “We’ve got cheap geothermal power in Naivasha – you can tap into that power. You can build your factories, you can put your goods on the railway, you can export it to Mombasa and you can access a three billion person market on the Indian Ocean economy.”

Before the creation of the SGR, 45 percent of the cost of Kenyan goods went towards transport expenditure – a cost that is now significantly lower.

Scholars Wang Bing and Nancy Muthoni Githaiga conducted a research study into both the benefits and drawbacks of the Kenyan SGR. They argue that the new SGR not only yields economic benefits but also reduces the country’s carbon footprint, as the new train is a much lower emitter than the previous one.

Furthermore, at least 60 new jobs were created for every kilometre of railway built – thanks to both construction and the production and supply of building materials like steel and cement. The Kenyan government had a policy that at least 40 percent of the labour and commodities used had to be sourced from within the country, thereby directly benefitting its economy.

Meanwhile, the Ethiopia-Djibouti Railway (EDR) was also praised last year for transporting around 70,000 tonnes of fertiliser from Djibouti port to Ethiopia in time for the main harvest season. This important fertiliser was transported in 26 rounds. According to the Ethiopia-Djibouti Railway Share company, it would have formerly taken around 75 freight trucks to transport the amount carried by a single train, and the journey would have taken three days as opposed to 11 hours.

TOPICAL FOCUS

Construction of the SGR tracks on the bridge crossing Ngong Road, near Karen and Ngong IMAGE: MACABE5387

“The EDR immensely benefits Ethiopia by reducing its expenditure for high-cost commodities like imported petroleum and related items.

It provides an economic advantage for the nation and the agriculture sector by delivering the fertilisers right on time,” said Aminu Juhar, EDR’s Planning Manager.

As well as successfully transporting freight, passengers are also able to travel between destinations more easily. This opens up Africa for both domestic and international travellers, improving business opportunities, trade connections and tourism.

CRITICISMS ABOUT SGR However, the SGR projects across Africa are not without their critics.

Many wildlife conservation groups have been vocal against the project in Kenya, saying it will affect animal behaviour and migration. According 20 | Africa Outlook issue 85

‘BEIJING HAS SO FAR WITHHELD THE $4.9 BILLION NECESSARY FOR THE THIRD PHASE OF KENYA’S SGR WHICH CONNECTS NAIVASHA WITH THE UGANDAN BORDER’ to the NGO Save the Elephants, during the construction of the first phase of the SGR 10 elephants were killed. In response to these concerns, designers added wildlife corridors and raised section of the line to facilitate animal movement.

The biggest criticism, however, is the fact that the Chinese-funded SGR projects are part of China’s Belt and Road Initiative. This infrastructure project, billed as a 21st century Silk Road, is a belt of overland corridors and maritime routes connecting over 60 countries and expecting to cost over $1 trillion. Critics believe it constitutes a form of economic

imperialism, as Chinese firms are often given construction contracts instead of local companies.

Furthermore, China has offered many countries loans so they can fund these large-scale construction projects. A 2018 report by the Center For Global Development found that eight countries – including Kenya and Ethiopia – are at serious risk of not being able to repay their loans. This has led to worries that China could use debt-trap diplomacy in order to gain strategic concessions over territorial disputes, or silence on human rights violations.

This negative publicity has had an adverse effect.

ENERGY & UTILITIES “The Chinese are adopting a more cautious approach to their debt exposure in Africa because of increased noise around its sustainability and potential default,” explains Piers Dawson, investment consultant at Africa Matters Ltd. Beijing has so far withheld the $4.9 billion necessary for the third phase of Kenya’s SGR which connects Naivasha with the Ugandan border, which is a big blow to Kenya’s infrastructure development plans. Furthermore, the Kenyan project has also been dogged with rumours of governmental corruption.

IMPROVING AFRICA’S INFRASTRUCTURE FOR THE FUTURE However, none of the above changes the fact that, so far, the SGR railways lines in Africa have improved infrastructure, created jobs, and cut journey times. While the railway lines themselves might not offer a high ROI,

According to the Ethiopia-Djibouti Railway Share company, it would have formerly taken around 75 freight trucks to transport the amount carried by a single train, and the journey would have taken three days as opposed to 11 hours.

IMAGE: MACABE5387

they do act as catalysts for economic development within the country.

According to a study by Project Insight, Africa’s growth projects are hampered by poor infrastructure.

Improving its quality and quantity to match those of the best performing countries could improve GDP by

around 2.6 percent year on year.

Furthermore, as Africa continues to develop its infrastructure, it will learn from previous projects. Tanzania, for example, began rebuilding its railway network after Kenya and Ethiopia.

Instead of sourcing funding from China for its network, the country

received loans from the Export Credit Bank of Turkey, and a $1.5 billion 20year loan from Standard Chartered Bank. It is also working with the Africa Trade Insurance Agency on a plan for the firm to provide a ‘credit wrap’, insuring sovereign bonds and other international financing structures.

In the time of COVID-19, infrastructure is more important than ever, helping economic recovery and keeping supply chains moving.

With the right loan conditions and management, Africa’s SGR railways represent a real opportunity for growth and development on the continent.

Africa Outlook issue 85 | 21

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INDUSTRY SPOTLIGHTS Welcome to our series of spotlights.

These reports dive into specific segments of economies across the region, featuring exclusive insight from associations and organisations in the know.

Botswana Mining Kenya Manufacturing

INDUSTRY SPOTLIGHT

MINING

IN BOTSWANA The mining sector is dominated by diamond mining, but with reserves beginning to dwindle, it is looking to diversify Writer: Dani Redd | Project Manager: Matt Cole-Wilkin

B

otswana produces roughly a quarter of the world’s diamonds.

Prospectors from De Beers first discovered diamonds in northern Botswana in the early 1970s. The company partnered with the government to form Debswana and opened four diamond mines: Orapa and Lelhakane (1972); Jwaneng (1982), the world’s richest mine; and Damtshaa (2003). It continues to dominate the market.

Diamond mining contributes to roughly 50 percent of government revenue, which it has used to build infrastructure and make rapid improvements to living standards. Thanks to robust governance, it has managed its diamond revenue in an efficient and transparent manner.

The country also mines coal for power generation, while nickel and copper have been mined

24 | Africa Outlook issue 85

at Selebi-Phikwe since 1984. Its two other proven mineral resources are salt and soda ash.

Challenges within the sector However, one challenge is the necessity to create more jobs within the mining sector, as the country currently has a high unemployment rate (of approximately 20 percent).

Another is that diamond production is beginning to slow due to the downward commodity cycle and declining reserves. This means that Botswana needs to diversify its exports and economy – one way to do this is through mining for other minerals. Within the country there are currently a lot of mineral exploration initiatives, searching in particular for base metals and precious stones.

INTRODUCTION

BOTSWANA MINING

Type of industry: Primary Main product(s): Diamonds, copper, nickel, coal Contribution to GDP: $ 1.26 billion (2019) Average annual growth rate: 2.6 percent Number employed: 12,773 (2017)

Mining in Botswana is well regulated by the government, in particular the Ministry of Mineral Resources and Water Affairs, along with the Department of Geological Survey and Mines. The Mines and Mineral Act regulates licences for mining and exploration, while also balancing mining activity with environmental protection. Any prospective mining company needs to go through a three-step process to begin extraction in Botswana. The first of these is a 12-month reconnaissance permit, allowing a company to survey an area for mineral deposits. The second is a prospecting licence, which allows them to search for minerals – any results must be communicated to the government. After this, a company may apply for a 25-year license to begin carrying out mining.

INTRODUCTION

Mining legislation FACTS & FIGURES

Africa Outlook issue 85 | 25

INDUSTRY SPOTLIGHT

Interview: Botswana Chamber of Mines Botswana Chamber of Mines (BCM) was founded in 1984 out of the need to interact and network over issues of health and safety within the country’s mines. This was when the country’s mining industry was still in its infancy, and the need of such an organisation to drive these objectives was apparent

A S S O C I AT I O N

Charles Siwawa Chief Executive Officer, Botswana Chamber of Mines

B

CM’s vision is to be a respected, effective and unified voice for the mining industry, which educates and shares knowledge with its stakeholders. Its mission is to represent the interests and needs of the mining industry in Botswana. We sat down with Charles Siwawa, the Chamber’s CEO, to find out more.

Africa Outlook (AfO): Since inception, how has the BCM developed and progressed in terms of its key objectives and the messages it tries to get across?

Charles Siwawa (CS): The genesis of Botswana Chamber of Mines commenced in 1984 with officers sponsored from the various mines to carry out chores for the organisation. However, as the mining industry grew, it became apparent that a secretariat was needed to efficiently handle the daily duties. The Botswana Chamber of Mines office were opened in Gaborone in April 2010.

The Chamber has grown significantly over the years – initially it was formed by five mining companies and today its membership has grown to

26 | Africa Outlook issue 85

over 35 – and growth is still anticipated to occur in the foreseeable future. Notable projects within the Chamber include artisan skills development, supply chain process and focussing on local entrepreneurs.

We have also achieved an advocacy role with the government and non-governmental organisations, with the intentions of ensuring effective communications with all our stakeholders.

Mining safety, health and environmental performance has improved tremendously during the past 10 years. The fact of peer review has assisted this industry to grow its performance as networking played a critical role in sharing of ideas for improvement.

BOTSWANA MINING

“Mining safety, health and environmental performance has improved tremendously during the past 10 years”

It is the Chamber’s hope that it develops in its desire to be an organisation that educates and shares knowledge. The interventions undertaken through engaging the public has endeared the Chamber well through becoming an organisation of trust and transparency.

AfO: What do you find most exciting about the mining industry in Botswana? On the flip side, what are its biggest challenges?

CS: It is exciting that Botswana’s mining industry is expanding. There is significant mineral exploration taking place, to the extent that the country sees more companies opening up their exploration activities to mining operations. The companies are

encouraged to beneficiate their produce within the country, hence stimulating the GDP and enhancing employment opportunities.

The challenges that the mining industry in Botswana faces are primarily commodity price fluctuations, grade of mineral deposits being on the lower quartile of the world scales and infrastructure provision across the country.

However, the government has made significant progress in the provision of infrastructure across the country, in particular roads, electricity, water, communication and so forth. These are commendable efforts on the part of government, especially considering that some of these mineral exploration activities are in remote parts of the country.

Africa Outlook issue 85 | 27

A S S O C I AT I O N

INDUSTRY SPOTLIGHT

AfO: How has COVID-19 affected the Botswanan mining industry?

CS: The mining industry was affected to a great extent, primarily because all mineral products are consumed outside of the country. The situation has to improve first from the outside markets before the mining industry can make headway on the recovery process. We take note that gold remained positive in its price performance, but the country has only one gold mine that produces relatively low tonnages of gold.

In terms of the actual infections, there were very few incidents of infections at the mines, even though they were operational throughout the lockdowns (as they were considered an essential service).

focus as a result of available infrastructure in the area such as roads, telecommunications and electricity.

It is anticipated that at a minimum two mines should be operational in that area in the next three years.

AfO: What trends are currently transforming the industry? How are you responding to them?

AfO: Are you optimistic about the future of the Botswanan mining industry?

CS: A current trend is the beneficiating of mineral products at the host country, as espoused by the African Union through the African Mining Vision (AMV). Some work has already been done to beneficiate diamonds in the country, whereas other studies are currently being undertaken to seek pointers of recommendations.

Furthermore, there is a lot of mineral exploration activity which will possibly lead to mining operations. The minerals are varied but the lead is in base metals and precious stones.

CS: The future of Botswana mining industry is pointing northwards. The key is in ensuring sustainability of the mining operations through prudent feasibility studies, which are subjected to rigorous tests of variability in both inputs and outputs.

AfO: Have you got any projects in the pipeline that you wish to highlight?

CS: There are a few projects in the western part of the country aimed at producing copper.

This area has recently received mineral exploration 28 | Africa Outlook issue 85

Botswana Chamber of Mines Tel: +267 391 4685/6 bcm@info.bw www.bcm.org.bw

BOTSWANA MINING

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OPERATIONAL READINESS

“With no time to lose, we help you get up and running faster than you thought possible”

PROCESS OPTIMIZATION

“Utilize our extensive experience: practical solutions to improve recoveries and optimize throughput”

MAINTENANCE SUPPORT

“On-demand expert assistance: bring the best out of your team and optimize the overall utilization of your plant”

SOLUTIONS FOR JUNIOR MINERS

“With limited capital investment: Keeping you ahead of the game with long term cost savings”

DIGITAL

“Let your data guide you: Interpret your data to improve your performance”

info@solara-mp.com | www.solara-mp.com LABOUR HIRE “On demand access to highly skilled manpower” Artisans | General helpers | Riggers | Specialized teams | Trade dispute representations | Permits SITE SUPPORT SERVICES “No job too big or too small. We provide fully equipped and skilled support teams” Housekeeping | Spillage | Mill relign | Process dams & industrial cleaning | Shut down & maintenance assistance | Guard rail fabrication & installation | Kerbing | Fencing | Bush clearing SCAFFOLDING AND LIFTING EQUIPMENT “Hassle free supply, erection, inspection and maintenance of scaffolding and other lifting equipment” Supply & rental | Inspections & certification | Service and repair PROJECTS / PARTNERSHIP SERVICES “Practical solutions to complicated problems.

Allow our strategic partnerships to engineer your operation to perfection” Process optimization | Downtime minimization | Condition monitoring | Design, fabrication and installation | Civil works

enterprises (Pty) Ltd

A 100% CITIZEN OWNED COMPANY WITH AN EXPERIENCED LEADERSHIP TEAM. WE LEAD EMPLOYMENT CREATION THROUGH SERVICES TO SUPPORT MINING AND MINERAL PROCESSING OPERATIONS.

THITMA QUANTUM ENTERPRISES (PTY) LTD UIN BW00000107980, PO Box 1693 | ORAPA T +267 71642334 | 75254044 | 72629022 E info@thitma.com | www.thitma.com

INDUSTRY SPOTLIGHT

Current trends and innovations With low-carbon minerals in increasing demand, Botswana can capitalise by decarbonising its industry

Dani Redd Editor, Industry Spotlight, Africa Outlook

T R E NBUSINESS DS & INNOV INSIGHT AT I O N S

I

ndustries and governments across the world are trying to transition to a low carbon economy.

Many low-emission energy systems are more mineral intensive than those powered by fossil fuels, so there will be increased demand for copper, lead, and more; a demand Botswana could capitalise on with its increased mineral exploration.

Low-carbon premium minerals will be particularly in demand.

In order to decarbonise their mineral production, mining companies can incorporate the use of renewable technologies into their processes.

Mining companies across Botswana are increasingly keen to develop solar power energy to meet their electricity needs in an economically viable, sustainable manner. The country’s main coal plant, Morupule B, has been plagued by technical problems that leave it unable to operate at full capacity, which makes finding a reliable power source even more important. Furthermore, electricity tariffs are rising within the country.

“Mining companies across Botswana are increasingly keen to develop solar power energy to meet their electricity needs in an economically viable, sustainable manner”

30 | Africa Outlook issue 85

There is also an increasing move towards digitisation within the mining sector. There are numerous reasons for doing so, the most important of which are to increase productivity, improve safety and reduce costs.

In Botswana and beyond there is a significant uptake of digital services including analytics and process-specific dashboards, remote process management platforms, and digital safety portfolios including collision avoidance and personal alert software.

Collecting and processing large amounts of data will be essential for Botswanan mining companies as they digitise and automate their operations. One by-product of this is that being transparent with this data will improve the mining industry’s relations with stakeholders.

Mining companies across Botswana are increasingly keen to develop solar power energy

K E Y P L AY E R S

BOTSWANA MINING

Key Players The companies shaping and disrupting the mining industry in Botswana

SOLARA HOLDINGS Solara Holdings has a proven track record in providing practical solutions to establish, operate and support mineral processing plants. It provides support with any aspect of the mineral processing cycle, from outsourcing operating and maintenance solutions, to performance monitoring and process optimisation.

De Beers Group R Mining & Exploration Ghaghoo Diamond Mine DRA Minergy

Africa Outlook issue 85 | 31

INDUSTRY SPOTLIGHT

MANUFACTURING

IN KENYA

The Kenyan government and private stakeholders are working hard to create a manufacturing sector that drives economic development and wealth creation Writer: Dani Redd | Project Manager: Joe Palliser

K

enya is considered the economic and financial hub of East Africa, with a robust and diverse economy based on tourism offerings, agriculture, forestry, mining and more.

Historically, the manufacturing centre has stagnated at around 10 percent of GDP, dipping to 7.7 percent in 2018. However, the government and private organisations (large and small) are aware of the manufacturing sector’s role in making Kenya an industrialised and competitive economy.

This renewed interest has resulted in plans and policies such as the Big Four Agenda, which seeks to increase the manufacturing sector’s percentage of overall GDP contribution to 15 percent by 2022.

32 | Africa Outlook issue 85

Subsectors Kenya’s manufacturing industry is diverse, comprising a variety of different sub-sectors such as automotive, metal and plastics. It also consists of both large businesses and SMEs, both of which have a part to play in economic development.

Food and beverage is the largest manufacturing subsector, which includes businesses manufacturing cocoa and confectionary from beans; dairies producing butter and milk; and distilleries and breweries manufacturing alcoholic beverages. Kenyan beer production has an annual turnover of $280 million, making it a significant contributor to the economy.

MANUFACTURING IN KENYA

Other subsectors include apparel and textiles, including those that are handwoven and stitched.

According to the CEO of the Export Promotion Council, Peter Biwott, there is an increased appetite for authentic Kenyan handicrafts.

“If you look at the export strategy, we have identified these items as having a huge impact on the country’s GDP since that is what many of our tourists are looking for,” he says.

This suggests that SMEs within the textiles industry and beyond have a key part to play in economic development.

FACTS & FIGURES Type of industry: Primary Sub-sectors: Automotive, metal, F&B, textiles, pharmaceutical Percentage of GDP: 7.7 percent (2018) Annual growth rate: 4.2 percent (2018) Number employed: 299,620 (2018)

Kenya’s Vision 2030 is to make Kenya a “middle income country providing high quality life for all its citizens by the year 2030”. It is shaped by President Uhuru Kenyatta’s Big Four agenda – food security, manufacturing, affordable housing and healthcare.

One aspect of this vision is the “Buy Kenya Build Kenya Policy” – to increase competitiveness and consumption of locally produced goods and services. However, although the government have taken steps to enforce it, KAM is calling for greater interventions.

These include supporting SME development through the provision of affordable credit; increasing the resilience of the manufacturing sector by ensuring long-term policy stability; improving the ease of doing business and development of regional value chains to minimise exposure from external shocks and much more.

In line with Vision 2030, KAM created its Manufacturing Priority Agenda 2020 – “Establishing a competitive manufacturing-led economy for job and wealth creation”. It consists of five pillars, such as ‘government-driven SMEs development’ – which aims to enhance market and financial access for SMEs – and ‘competitiveness and level playing field’, which promotes access to reliable, affordable longterm energy, reduces logistics costs and provides an enhanced cashflow to manufacturers through addressing fees and levies, alongside incentivising prompt payments.

I NITNRTORDOUDCUTCITOIN ON

Kenya’s Manufacturing Priority Agenda

Africa Outlook issue 85 | 33

INDUSTRY SPOTLIGHT

Interview: Kenya Association of Manufacturers Associations play a vital role in representing the interests of their members at an industry and national level. We asked Mr Mucai Kunyiha of the Kenya Association of Manufacturers to find out more about the current state of the sector and what it is doing to advance its agendas

Mr Mucai Kunyiha

A S S O C I AT I O N

Chairman, Kenya Association of Manufacturers

K

enya Association of Manufacturers (KAM) was established in 1959 as a representative of manufacturing and value-add industries in Kenya. Its mission: to promote competitive and sustainable local manufacturing.

It uses fact-based advocacy to collaborate with governmental agencies in ensuring a flourishing manufacturing sector, with the goal of achieving a double-digit contribution to GDP. We spoke to Mr Mucai Kunyiha, Chairman of KAM, to find out more.

Africa Outlook (AfO): Since inception, how has KAM developed and progressed in terms of its key objectives?

Mucai Kunyiha (MK): Since its establishment in 1959, KAM has evolved into a dynamic, vibrant, credible and respected business association that unites industrialists and offers a common voice for businesses and SMEs. We have also built a sustainable organisation through membership growth, and our very own building opened in December 2014.

34 | Africa Outlook issue 85

We have expanded our regional presence. This has played a key role in enhancing our advocacy work at county level. Through our advocacy, we have seen business grow and expand. Some of our advocacy issues include: ‘Buy Kenya Build Kenya’; fighting against illicit trade; access to affordable and reliable energy; infrastructural development such as roads and water.

This year, we have seen local manufacturers big and small step up to support the country in the fight against COVID-19 and to keep Kenya moving.

They have produced essential items, such as hand sanitiser and personal protective equipment including full body suits, masks and gloves to be used by medical personnel. Our automotive sector, led by Mutsimoto Company Limited, also developed the first ever locally manufactured ventilator, which was recently certified by the government.

AfO: What do you find most exciting about the manufacturing industry in Kenya?

MK: The local manufacturing sector is diverse, with 14 sectors located all over the country. It is exciting to witness first-hand the impact manufacturers make on the societies in which they operate, and nationally it is mind-blowing. They are a key engine for job and wealth creation as well as the economic sustainability of the country.

MANUFACTURING IN KENYA

“It is exciting to witness first-hand the impact manufacturers make on the societies in which they operate, and nationally it is mind-blowing. They are a key engine for job and wealth creation as well as the economic sustainability of the country”

The technological advancements used to manufacture some products also makes the sector exciting; for example, a machine that produces a lot of goods in a very short time to meet market demand. Recently, we visited one of our members, who is the power behind most major brands in the hospitality sector. The manufacturer produces kitchen and laundry equipment, and is also a coldroom solution provider, offering innovative products and services from concept development, designing, sourcing, fabrication and installation to after-sales service.

AfO: On the flip side, what are its biggest challenges?

MK: We hope to contribute 15 percent to the GDP by 2022, as outlined in the Big Four Agenda.

However, we are hindered by challenges such as the quality of power, difficulties in accessing finances, unpredictable policies and regulatory environment, shortage of an adequately skilled workforce, market access in the region, illicit trade which eats into local manufacturers’ market share, an influx of cheap goods, taxation and county licenses and fees which hinders trade in and among counties.

Africa Outlook issue 85 | 35

A S S O C I AT I O N

INDUSTRY SPOTLIGHT

We are consistently engaging government to resolve these challenges, in order to achieve our development goals as a country for job and wealth creation.

AfO: Can you talk a little more about Kenya’s sustainable development goals and how KAM aims to work towards them?

MK: SDGs are universally accepted, most importantly because they create opportunities for different industries to create shared value. In the manufacturing sector, for instance, we do see the coming together of market potential, societal demands and policy action. It is therefore critical for all stakeholders, the private and public sector alike, to unite and fast-track the realisation of the SDGs before we run out of time. This has seen us rally our members and the wider private sector to embrace and integrate sustainability within their business strategies and operations.

We at KAM resonate with the 14 sectors of manufacturing under our membership whose role is crucial in the implementation of the SDGs. While real progress has been made by the business community, action to meet the SDGs is not advancing at the speed or scale required.

Furthermore, the current pandemic has impacted on the implementation of SDGs. For example, it has reversed gains made in SDG 3 on good health, achieving clean water and sanitation targets (SDG 6), weak economic growth and the absence of decent work (SDG 8), pervasive inequalities (SDG

36 | Africa Outlook issue 85

10), and above all, entrenched poverty (SDG 1) and food insecurity (SDG 2).

At the moment we need goodwill and commitment from all stakeholders – private sector and government – to achieve these goals. We must focus on addressing underlying factors through the SDGs, even as we seek to overcome COVID-19.

Now is the time to embrace new innovative ideas to fast track our progress in realising SDGs. However, this must be hinged on robust institutional frameworks with distinct, yet complementary roles, responsibilities and accountability measures.

At the beginning of the year, KAM, the Office of the Deputy President and Global Compact Network Kenya carried out a study to understand Kenya’s SDGs readiness from a policy, legislative and institutional perspective. The report provides a legislative review of Kenyan Laws to identify areas that need to be reformed to align with the SDG commitments. It has also identified gaps in the laws and policies across the 17 goals, with an emphasis on how the country can achieve green economic growth.

The recommendations in the SDG Readiness Report seek to support enabling legislation targeting specific SDGs and sub-goals. They include consolidation and integration of institutional framework through creation of a multi-sectoral agency that coordinates all the institutions dealing with SDGs; integration of the SDGs within the constitutional, legislative and regulatory frameworks; and involvement of the counties in the implementation of the SDGs.

MANUFACTURING IN KENYA

“Our focus now is to build resilience in industries, which the pandemic pointed us to”

AfO: How has COVID-19 affected the manufacturing industry?

MK: Earlier this year, in partnership with KPMG, we launched a report on the impact of COVID-19 on the manufacturing sector in Kenya. The survey sought to highlight: challenges facing manufacturers in the midst of COVID-19, and how they are adapting to these changes; manufacturers’ perception on the economic measures put in place by the government in response to COVID-19’s effect on the economy; and proposals to address these challenges.

The report revealed some upsetting statistics.

For example, 91 percent of non-essential goods manufacturers have seen a significant fall in demand, compared to 74 percent of essential goods manufacturers. Manufacturers’ top priorities are reducing costs (78 percent), job retention (61 percent), and improving cashflows (53 percent).

However, 40 percent of manufacturers have had to reduce their casual workforce, with 73 percent retaining their permanent employees.

We were pleased to see that more than 90 percent of manufacturers have adhered to guidelines put in place to curb the spread of the virus such as sanitisation points, social distancing and providing PPE equipment. In terms of economic incentives, 71 percent of manufacturers indicated that zero tax on income less than Kshs 24,000 ($220 USD) was most helpful while reducing the VAT to 14 percent was least helpful.

AfO: Have you got any projects in the pipeline you wish to highlight?

MK: Our focus now is to build resilience in industries, which the pandemic pointed us to. Kenya can forge the resilience of local industries by enhancing

our local value chain, from raw materials to finished products. By doing so, we can shelter the manufacturing sector from industrial and trade risks arising out of external shocks. This way, Kenya can source raw materials and intermediate products locally, before turning to international markets.

We can also build resilient industries by supporting Kenyan-made products through public procurement, creating awareness on locally manufactured products and encouraging consumers to buy local.

Predictable and stable policy initiatives are also critical. This entails succinct fiscal and regulatory policies and initiatives that encourage investments into the sector. Increased investments will see local industry thrive and in turn create jobs and wealth for many.

AfO: Are you optimistic about the future of the manufacturing industry?

MK: We have identified 76 opportunities for investment and value addition through our Manufacturing Resilience and Sustainability Strategy: A Sector Deep Dive Report. Among them, the manufacture and supply of medical equipment, investments in adopting new technology, increased attention to developing local value chains to reduce dependence on imports, circular value chain, agroprocessing, regional leather value chain integration and packaging materials.

We are keen to see manufacturers take up these opportunities. As such, we shall continue engaging manufacturers to understand the bottlenecks hampering their uptake.

Furthermore, we will continue to engage the government on the overarching interventions needed to aid in the recovery of the manufacturing sector and economy, as businesses try to navigate different challenges brought about by the pandemic.

Kenya Association of Manufacturers Tel: +254 (020) 232481 info[@]kam.co.ke www.africa-log-prop.co.za

Africa Outlook issue 85 | 37

INDUSTRY SPOTLIGHT

Current trends and innovations Kenyan manufacturers need to embrace robotics, AI and machine learning to remain competitive

Dani Redd Editor, Industry Spotlight, Africa Outlook

T R E NBUSINESS DS & INNOV INSIGHT AT I O N S

M

any of the current trends within Kenya’s manufacturing industry have arisen from the need to survive the effects of COVID-19.

Local industries had to strategise and implement immediate actions to ensure business continuity and ensure the safety of their employees at the workplace, focusing on strategic initiatives to accelerate preparations for recovery and increasing their resilience.

According to KAM, local manufacturers have had to tailor production and supply systems to meet the ever-changing needs of the consumer, resulting in an increased uptake of ecommerce, as more consumers shift to online shopping.

There has also been an increase in the uptake of automation by industry, in order to ensure business continuity and increase output. This was to ensure compliance with measures put in place to

mitigate the spread of coronavirus, including social distancing, which required less employees to be present in the workplace.

Kenya is considered the leading technology and innovation hub in Africa. In order for its manufacturing sector to remain competitive it needs to keep up to date with technological advances such as robotics, AI and machine learning.

Globally, the AI in the manufacturing market is expected to be valued at $1.1 billion in 2020, and is likely to reach $16.7 billion by 2026, expanding at an annual rate of 57.2 percent during the forecast period.

Machine learning’s ability to collect and handle big data and its applications in real-time speech translation, robotics, and facial analysis is fuelling its growth in the manufacturing market. Indeed, it is something which Kenyan manufacturers will be monitoring closely.

‘Local manufacturers have had to tailor production and supply systems to meet the everchanging needs of the consumer, resulting in an increased uptake of ecommerce’ Kenya is considered the leading technology and innovation hub in Africa

38 | Africa Outlook issue 85

ACO Industries was established in the early 1970’s as single-product manufacturer. From those modest beginnings, HACO is now one of the region’s leading FMCG manufacturers, supplying a wide range of products to the East African and COMESA Markets.

Beginning with Stationery and Shaver Products, HACO diversified its operation into Personal and Home Care products in the mid 1990’s. Principal to this process were international partners such as Société BIC France, E.T. Browne Drug Company Inc. USA and Jeyes PLC UK. HACO Industries is now a leading FMCG Manufacturers with brands in the Personal, Home & Hair Care categories, supplying a wide range of products to the entire East African, COMESA, and ECOWAS Markets.

MIADI marked the first specifically tailored product to be launched from HACO Laboratories, the company’s Research & Development division. The launch also came at the culmination of HACO’s 20 year plus involvement in the Hair Care Market with international brands.

The year 2020 has seen HACO Industries rapidly scale up and launch 7 new brands across our markets of operation. The portfolio now includes Personal Care Products under the Amara Brand (Skin Lotions & Creams, Jellies & Oils, Hand Sanitizer, Handwash & Showergel) , Homecare in the Fabric Care Category with the So Soft Brand, Dishwashing Category with the Sparkle brand & Householding Cleaning under the ACE Brand (Liquid Toilet Cleaner & Blocks, Disinfectant, Multipurpose Cleaner & Bathroom Cleaner). Plastics under the HACO Brand (Pegs & Rulers).

We also exclusively hold the East Africa distribution licenses for Mattel Toys (Barbie, Fisher Price, Hot Wheels, Scrabble & UNO) as well as for E.T. Browne Drug Company Inc. USA for their Palmers brand.

Our mission is to create and provide quality personal care and home care products that meet the needs of consumers and enhances their everyday life.

Our vision is to be the most preferred company with a commanding presence in every household by 2030.

HACO Industries applies world-class standards and best practice in manufacturing, supply chain, marketing and sales distribution. Consumers are our business and we remain 100% focused on customers.

We invest meaningfully in training, coaching and reward systems to motivate our teams. We pride ourselves on being ‘The Home of Quality’.

:

+254 020 864 2000

:

customercare@haco.co.ke

: www.haco.co.ke

INDUSTRY SPOTLIGHT

Key Players The companies shaping and disrupting the manufacturing industry in Kenya

BROADWAY GROUP Broadway Group is a milling and baking organisation that has been producing high-quality flour and bread products for decades. The enterprise is primarily formed of Broadway Bakery Limited and Bakex Millers Limited. The former started in 1958 and the latter in 1983, making it one of the oldest grain mills in Kenya.

HACO KENYA HACO Industries is now one of the region’s leading FMCG manufacturers, supplying products across East African and COMESA markets. Its portfolio includes personal care products (brands such as Miadi and Amara) and homecare (by brands such as So Soft and Sparkle).

CARMEL MOUNT LOGISTICS Carmel Mount Logistics is a shipping and logistics provider with decades of experience.

It is renowned for its efficient freight forwarding and clearing, and offers a range of services including container liner, supply chain and transportation services.

Bamburi Cement BIDCO East Africa Breweries

40 | Africa Outlook issue 85

www.broadway.co.ke

Good for you. Good for the environment too.

A range of flours ideal for all of your baking needs

K E Y P L AY E R S

MANUFACTURING IN KENYA

KEEPING KENYANS HEALTHY SINCE 1958 info@bakex.co.ke Bakex_ke bakex_ke Bakex_KE

info@broadway.co.ke broadwaysbread broadwaysbread mandobiteske mandobiteske

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Carmel Mount Freight Logistics is a dynamic clearing & forwarding, shipping and logistics service provider with years of experience. Known for offering reliable and efficient freight forwarding and clearing service throughout the world, Carmel Mount Freight Logistics focus’ on delivering dedicated personalized service. As competition continues to intensify, service quality has remained a crucial determinant in creating overall customer satisfaction. Championed by a well- established worldwide network from shipping lines to other prominent agents, Carmel Mount Freight Logistics offers a wide range of services including container liner, supply chain and transportation services. Along with its highly trained professionals and superior industry standard, Carmel Mount Freight Logistics enjoys good business relations with its partners, airlines, shipping lines, agents and other cargo handlers sustaining its smooth, secure and prompt cargo delivery.

Services Provided • Freight forwarding and customs clearance • Project cargo clearance and transportation • Sea Freight Clearing and Forwarding • Air Freight Clearing and Forwarding (Mombasa & Nairobi, Kenya) • Vehicle Clearing and Shipping • Shipping Brokerage • Warehousing

CELEBRATING 10 YEARS Mombasa office - HQ Mombasa Trade Centre, Nkrumah Road, 1st Floor, Suite 101 South Tower, Mombasa, Kenya Tel: +254-66 2327077 / +254 203567111 / +254 776 107477 Nairobi office Trance Towers, Office 104D, Tsavo Road, Nairobi, Kenya.

Tel: +254 785 690 822 jones@carmelmount.co.kew carmelmount@nedones.co.ke

www.carmelmount.co.ke

Africa Outlook issue 85 | 41

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

AFRICA OUTLOOK is a digital and print product aimed at boardroom and hands-on decision-makers across a wide range of industries on the continent.

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

We reach an audience of 185,000 people across the continent, bridging the full range of industrial sectors: agriculture, construction, energy & utilities, finance, food & drink, healthcare, manufacturing, mining & resources, oil & gas, retail, shipping & logistics, technology and travel & tourism.

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

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

FREE

WESTERN CAPE BLOOD SERVICE

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

Issue 85

Banking on

BLOOD

HEALTHCARE

Banking on

T

Blood

How South Africa’s Western Cape Blood Service continues to collect, process and deliver life-saving blood products

INDWE RISK SERVICES Embracing digitisation

South Africa’s Western Cape Blood Service continues to collect, process and deliver life-saving blood products to public and private healthcare providers in spite of the challenges presented by the coronavirus pandemic Writer: Tom Wadlow | Project Manager: Callam Waller

JAM CLOTHING From a moment of inspiration to 111 South African stores

Note: The photos in this article were taken prior to the coronavirus outbreak.

The wearing of masks is now mandatory.

he mind boggles when looking at statistics relating to blood.

The fuel that keeps us alive, the human body manufactures around 17 million red blood cells per second, with a single unit of blood containing 2.4 trillion of these cells.

It is estimated that blood accounts for roughly seven percent of the bodyweight of an average person, adults containing around five litres of blood inside their bodies. A small part of that, 0.02 percent, is pure gold.

A complex and intriguing part of our makeup, enduring heavy losses of blood can be fatal, making a reliable and safe supply of blood a critical part of any healthcare system and hospital network.

In South Africa, there are two major bodies responsible for the provision of blood to medical institutions and healthcare providers, with most of the country covered by the South African National Blood Service.

In the west of the country, the Western Cape Blood Service (WCBS) is responsible for collecting, processing, testing and distributing blood products in the Western Cape province.

And it is here that Dr Greg Bellairs presides as CEO. “A fundamental duty of any blood service is to provide blood products to patients in hospitals timeously, safely and consistently. Without blood, many patients would otherwise die,” he says. “Blood products are critical in many clinical situations – for example, trauma, surgery, and treatment of leukaemia.”

Bellairs goes on to explain the transfusion process and how WCBS fits into this lifesaving series of events.

“It starts with a treating clinician ordering the blood products required for the patient, and submitting an order form and blood sample to the blood bank,” he continues.

“Blood products are selected and matched for the patient – a process called crossmatching, which ensures

Marketi ng Oppo rtunity

A STORY OF COLLABORATION AND CONTINUITY DURING COVID-19

Africa Outlook issue 85 | 3

Kagiso Khaole, Chief of Staff and Head of Content and Services at Samsung Africa, talks about the tech giant’s work to deliver affordable technology to African communities

www.africaoutlookmag.com/work-with-us

WESTERN CAPE BLOOD SERVICE

Banking on

Blood South Africa’s Western Cape Blood Service continues to collect, process and deliver life-saving blood products to public and private healthcare providers in spite of the challenges presented by the coronavirus pandemic Writer: Tom Wadlow | Project Manager: Callam Waller

HEALTHCARE

T

Note: The photos in this article were taken prior to the coronavirus outbreak.

The wearing of masks is now mandatory.

he mind boggles when looking at statistics relating to blood.

The fuel that keeps us alive, the human body manufactures around 17 million red blood cells per second, with a single unit of blood containing 2.4 trillion of these cells.

It is estimated that blood accounts for roughly seven percent of the bodyweight of an average person, adults containing around five litres of blood inside their bodies. A small part of that, 0.02 percent, is pure gold.

A complex and intriguing part of our makeup, enduring heavy losses of blood can be fatal, making a reliable and safe supply of blood a critical part of any healthcare system and hospital network.

In South Africa, there are two major bodies responsible for the provision of blood to medical institutions and healthcare providers, with most of the country covered by the South African National Blood Service.

In the west of the country, the Western Cape Blood Service (WCBS) is responsible for collecting, processing, testing and distributing blood products in the Western Cape province.

And it is here that Dr Greg Bellairs presides as CEO. “A fundamental duty of any blood service is to provide blood products to patients in hospitals timeously, safely and consistently. Without blood, many patients would otherwise die,” he says. “Blood products are critical in many clinical situations – for example, trauma, surgery, and treatment of leukaemia.”

Bellairs goes on to explain the transfusion process and how WCBS fits into this lifesaving series of events.

“It starts with a treating clinician ordering the blood products required for the patient, and submitting an order form and blood sample to the blood bank,” he continues.

“Blood products are selected and matched for the patient – a process called crossmatching, which ensures Africa Outlook issue 85 | 45

A partnership built Since 2016 Roche Diagnostics has been a proud partner of the Western Cape Blood Service (WCBS); helping them deliver the safest blood products and efficient service to the people of the Western Cape.

WCBS is established.

Closely involved with the first heart transplant that took place at Groote Schuur Hospital.

A new laboratory facility is set up to facilitate testing blood for HIV infection.

Introduces the latest technology to test donated blood – Nucleic Acid Testing (NAT).

1938

1967

1985

2005

Roche is founded in Basel, Switzerland and since then has grown into one of the world's leading healthcare companies.

1896

Roche enters the diagnostics market.

1968

Roche launches the world’s first HIV-1 test.

1985

Roche introduces Nucleic Acid Testing (NAT).

Today Roche is a global leader in NAT.

1998

on saving lives As a global leader in diagnostics, Roche is dedicated to helping save patients’ lives by delivering state-of-the-art solutions to aid in the protection of the world’s blood and plasma supply from infectious diseases.

WCBS partners with Roche Diagnostics for serological blood screening.

Roche Diagnostics and WCBS further solidify their partnership with the introduction of the high volume cobas® e801 module for serological blood screening, making WCBS the first blood service in Africa to implement this technology.

Successful validation followed by second line testing for HBeAg and Anti-HBe.

Linked for Life.

2016

2018

2019

2020

We look forward to an exciting partnership together with the WCBS and commit to continuously deliver excellence, safety and life-saving innovation.

Source: www.wcbs.org.za | www.roche.com Published and Distributed by: Roche Diagnostics (Pty) Ltd. | Hertford Office Park | Building E 90 Bekker Road | Vorna Valley | Midrand | South Africa MC-ZA-00238 | 10/2020

WESTERN CAPE BLOOD SERVICE

THE BLOOD PORTFOLIO Broadly speaking, blood products are divided into the following categories: • Red cell products – to restore oxygen-carrying capacity in patients who have low haemoglobin levels usually following extensive blood loss or due to severe anaemia • Plasma products – to restore blood clotting proteins, for example after a massive haemorrhage • Platelet products – to normalise patients’ platelet counts (platelets pay a critical role in early blood clotting and maintaining haemostasis), for example in patients who have had a massive haemorrhage, or who have insufficient platelets due to bone marrow malignancies and while undergoing bone marrow transplantation

48 | Africa Outlook issue 85

that the products are compatible with the patient’s blood type.

“After crossmatching, blood products are issued in a specialised container which we call a hamper, designed to keep them at a specific optimal temperature during transport to the hospital and, ultimately, to the patient’s bedside for transfusion by clinical staff.”

Transporting the precious cargo is WCBS’s fleet of around 80 vehicles.

Operating the vehicle fleet and other vital frontline and back office functions are a team of 530 staff members, the service being headquartered in Cape Town with regional offices in the smaller towns of Paarl, Worcester and George.

While much of the processing and testing work is centralised in Cape Town, blood is collected across the length and breadth of the Western Cape from fixed site donation clinics, mobile clinics and even pop-up caravan and bus facilities.

The province itself is home to 6.6 million people, and around 72,000 of them are voluntary blood donors who between them donate around

156,000 units of whole blood and 4,000 units of single-donor platelets a year.

This donation pool supplies eight blood banks which provide blood products to 140 state and private hospitals on a 24-seven, 365 days a year basis. A further 102 emergency blood banks are situated in the hospitals themselves, these being stocked with group O blood, from what are known as universal donors.

Today’s operation is a far cry from the organisation which was established in 1938 at Groote Schuur Hospital. Back then, only 200 donors were on the books and an average of 30 transfusions a month were being carried out, although the practice was in its infancy during the 1930s.

The process was also entirely different. The donors themselves would transfer blood directly to the recipient with just a screen separating them, a key series of turning points arriving in the 1940s when new premises were found and mobile units established, enabling a wider scouting mission for donors across the Western Cape.

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Banking on

Issue 85

www.africaoutlookmag.com/work-with-us BLOOD How South Africa’s Western Cape Blood Service continues to collect, process and deliver life-saving blood products

We never forget that behind every specimen there’s a real person waiting for critical test results - which is why we never stop working to deliver accurate, efficient, and reliable instruments, easy-to-use technology, and continuous collaboration to ensure your lab is delivering exceptional patient care.

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WESTERN CAPE BLOOD SERVICE It wasn’t until 2019 that the nonprofit organisation’s name evolved from the Western Province Blood Transfusion Service to the Western Cape Blood Service, the decision taken to reflect the geographical area of operation and fact that the group does not itself transfuse blood.

RESPONDING TO A CRISIS This year, the onset of the coronavirus pandemic has presented an altogether unique set of circumstances for the service.

LEADERSHIP FOCUS DR GREG BELLAIRS Greg Bellairs qualified as a medical doctor at the University of Cape Town in 1990. Over the next decade, he worked in trauma and emergency medicine, and anaesthesiology in both the United Kingdom and South Africa.

In 2000 he completed an MBA at the University of Cape Town’s Graduate School of Business and co-founded a barrier surgical textile company thereafter.

Bellairs then decided he wanted to remain involved with clinical medicine as well as develop further managerially, and he joined WCBS in 2002 in the position of Medical Officer and was promoted to Administrative Director/CFO in 2008.

In 2011 he completed the Postgraduate Diploma in Transfusion Medicine at the University of Free State, and was appointed as CEO/Medical Director of WCBS in 2012.

52 | Africa Outlook issue 85

Bellairs explains that the COVID-19 outbreak has impacted WCBS across its three strategic pillars: namely sufficiency of blood supply; safety across donations, products and the working environment; and financial and operational sustainability.

Commenting on the first two of these, he adds: “Blood donations have been significantly impacted

by COVID-19, as well as the various degrees of lockdown imposed over recent months. With restrictions imposed on people travelling, blood donors have been assured that travel for blood donation is allowed.

“WCBS also needed to provide a safe environment for blood donation, which included increasing the spacing between donation chairs and beds, amending blood donation clinic workflows, providing PPE for staff

and donors, enhanced sanitisation procedures, and more.

“As we collect significant amounts of blood from schools, universities, and corporate clinics, the closure of these and restrictions on visitors markedly reduced opportunities to collect blood. Adjusted blood collection strategies included convening more clinics, for example at shopping malls, as people still needed to continue to shop for food, as well as clinics in residential areas. In addition, donors were redirected to these clinics by the call centre, SMS, website and email.”

Despite the clear and obvious challenges faced, WCBS was able to collect enough blood throughout the peak of the COVID-19 crisis, even though stocks were lower than the organisation usually strives for (five days of each blood type).

“AT THE HEIGHT OF RESTRICTIONS, AND DURING THE PERIOD WHEN ALCOHOL WAS BANNED AND ELECTIVE SURGERY CURTAILED TO FREE UP HOSPITAL BEDS FOR COVID-19 PATIENTS, THE VOLUMES OF BLOOD PRODUCTS SOLD WERE REDUCED BY AT LEAST 30 PERCENT”

A

global leader of in vitro diagnostics for over 80 years, our purpose is simple: to improve and save lives with diagnostics. It’s what defines us. Ortho Clinical Diagnostics delivers the high-quality in vitro diagnostic solutions that give healthcare professionals around the world the information they need to make treatment decisions sooner. We serve the global Transfusion Medicine community with donor screening and blood typing solutions to help ensure every patient receives blood that is safe and the right unit. We also bring sophisticated information management, testing technologies, automation and interpretation tools to clinical laboratories worldwide to help them run more efficiently and ensure exceptional patient care.

Being considerate of the earth and its resources is a longstanding commitment of Ortho Clinical Diagnostics. We are committed to operating in a manner that supports the environmental health of the communities in which we operate and the sustainability of the planet. In our operations, we focus our environmental efforts on reducing waste and energy consumption while generating clean energy at our global facilities; and incorporating environmentally-friendly practices into our product manufacturing and packaging. Protecting the environment and advancing sustainability go handin-hand with our purpose of improving and saving lives through diagnostics.

WATER INITIATIVES Our innovative waterless technology powers our clinical testing solutions since 1978. Our VITROS® Systems, which test blood for diseases, conditions and substances, do not require water or drains to operate, helping our customers reduce their environmental footprint. Each VITROS® System alone saves hospitals 170,000 litres of purified water a year per analyser, enough for a family of four to survive on for 20 years.

WASTE INITIATIVES We have recycled 400 tonnes of medical waste into plastic construction materials and our facilities alone have saved 125 millions of litters of water per year since 2015.

ENERGY INITIATIVES Our on-site solar panels and co-generation units offset enough energy to power 875 typical homes every year.

Our VITROS® Systems, which test blood for diseases, conditions and substances, do not require water or drains to operate, helping our customers reduce their environmental footprint. Through our dry technology, Ortho has helped hospitals around the world save millions of litres of fresh water. It’s why you can find our systems on aircraft carriers and humanitarian aid ships, and in remote areas.

+649 082 008 | helen.brown@orthoclinicaldiagnostics.com www.orthoclinicaldiagnostics.com

WESTERN CAPE BLOOD SERVICE

This is some feat given that staffing levels were also markedly affected.

WCBS lost many working hours due to employees either contracting the virus or having to isolate themselves – fortunately, the organisation has

THE WCBS MISSION “Western Cape Blood Service is a non-profit regional health organisation, dedicated to collecting blood from voluntary blood donors, and providing the safest blood products and efficient service to the community, while operating at the highest professional and ethical standards and remaining a viable organisation.”

56 | Africa Outlook issue 85

suffered zero coronavirus fatalities and was able to plug the resourcing gap to ensure seamless continuity of service.

Another interesting nuance of the pandemic period has been the demand for blood and subsequent impact on sales and revenue.

“Blood usage varied significantly depending on the degree of lockdown,” Bellairs explains. “At the height of restrictions, and during the period when alcohol was banned and elective surgery curtailed to free up hospital beds for COVID-19 patients, the volumes of blood products sold were reduced by at least 30 percent.

“As restrictions were lifted, sales improved but remained lower than originally expected. In South Africa, trauma is influenced by the availability and use of alcohol – and we saw evidence of this when alcohol became available, as blood usage increased.”

More recent weeks have seen sales normalise, but WCBS is still

feeling the impact of several months of reduced income, a period which meant that expenses were reassessed, down-managed, and all non-essential expenditure was curtailed.

Bellairs adds: “We were fortunate to have sufficient reserves to weather the financial storm, and the early uncertainty levels, which were high, have been replaced by recent experience demonstrating that although sales and income were reduced, we now know to what extent, and are able to anticipate the impacts of later waves of the pandemic.

“Despite our financial challenges, we recognise that we are fortunate to operate in the healthcare space, which somewhat insulated us from the financial devastation faced by organisations which could not operate at all during the lockdown.

“One of our core goals was to not retrench any staff, and to pay everyone in full – we were able to achieve this.”

Time Matters When You Have a Sepsis!

S

epsis is a complex and severe syndrome associated with a dysregulated immune response to infection. It is a global health crisis that every year affects around 50 million people worldwide, and at least 11 million die.

Depending on country, mortality varies between 15 and 50 percent. At least two million sepsis deaths are estimated to occur in Africa each year. These statistics, however, are presumed to be gross underestimates, because in Africa sepsis is rarely diagnosed, reported, or registered as cause of death.

Patients with sepsis most often enter the hospital through the emergency department, and clinicians often use white blood cell (WBC) counts to help identify sepsis, but changes in WBC alone have limited utility for sepsis diagnosis and delayed detection can impact adverse outcomes. Many surviving patients suffer from the consequences of sepsis for the rest of their lives.

Early detection in emergency department and appropriate therapeutic intervention can increases the likelihood of survival for patients with sepsis.

The hematology laboratory has a vital role to play in rapidly identifying septic patients or those who are at high risk of developing sepsis. Recently, a new sepsis biomarker, Monocyte Distribution Width (MDW), which is based on monocytes’ variability in sepsis, became available on a routine hematology analyser DxH900 from Beckman Coulter. The analyser characterises cells in their near-native state to enable measurement of small changes in cell morphology that occur at the onset of sepsis. The performance

Beckman Coulter South Africa, Jhb

|

of this early sepsis indicator demonstrated in large clinical trials and received FDA 510(k) clearance in April 2019.

The clinical trial was conducted by Dr. Crouser, a researcher and a leader of the sepsis detection and treatment program at the Ohio State University’s East Hospital, Columbus, OH and his team to assess the monocyte distribution width parameter as a sepsis biomarker.

The large multicenter study concluded that “in conjunction with the WBC, as components of the CBC with differential, the performance of MDW further improves and is predicted to enhance healthcare decisions relating to the early detection and treatment of sepsis in the ED.”1 This year, Beckman Coulter has expanded its partnership with Biomedical Advanced Research and Development Authority (BARDA) to study the use of the unique sepsis diagnostic biomarker (MDW) in COVID-19 patients. The aim of the new study is to optimise a machine-learning based sepsis diagnostic and prediction algorithm to determine whether the test can aid in the detection of sepsis in coronavirus (COVID-19) patients, regardless of whether it is bacterial or viral induced.

1. Crouser ED, Parrillo JE, Seymour C, et al. Monocyte distribution width, a novel indicator of Sepsis-2 and Sepsis-3 in high risk emergency department patients. Crit Care Med. 2019;47(8):1018–25.

T +27 11 564 3000

|

www.beckmancoulter.com

WESTERN CAPE BLOOD SERVICE

ILEX South Africa “Do Something Remarkable” – the motto which Western Cape Blood Services lives by, is seen in their actions to donors and patients every day. During these times of unknown WCBS has been remarkable in its commitment to donors and patients.

We and our partners (Grifols, CERUS, Fresenius Kabi and Hologic) are proud to be associated with WCBS and its remarkable service to blood transfusion.

Starting with Nucleic Acid Testing through Grifols, then Pathogen Inactivation through CERUS, we have expanded our product representation with Fresenius Kabi blood transfusion products in the region. Expanding our portfolio allows us to supply a full donor to patient solution for blood transfusion services in Africa.

THE POWER OF PARTNERSHIP Another key observation illuminated by the pandemic has been the critical nature of WCBS’s supply chain and network of partnerships.

The CEO is quick to acknowledge the role each supplier and partner plays towards the organisation reaching its objectives, be they producers of blood collection bags or manufacturers of testing reagents which help ensure

THE WCBS VISION “To maintain a blood service that is appropriate to the needs of the South African Community. To be prepared to extend the service to provide for wider regional or national needs and to provide leadership in transfusion practice.”

58 | Africa Outlook issue 85

blood is safe for transfusion.

Many of its suppliers are multinational companies which operate with local footprints, while a large number of the products used across both consumable and capital categories are specialised and imported, and hence subject to currency volatility.

It makes for a complex picture, one which Bellairs says became even more complicated thanks to the arrival of COVID-19.

“We were worried about the impact on security of supplies, with borders being shut and logistics operations swamped, as well as many other customers in our field seeking to increase their holdings of critical equipment,” he says.

“We asked some suppliers to increase their locally held stock levels to mitigate risk of running out, and we also increased our stock holdings of certain items, for instance from two months of supply to four or even six months.

Due to worldwide travel, pathogens which until recently were unknown in certain regions are now of great concern in blood transfusion and for patients receiving blood products.

Many of the diseases that these pathogens can cause are not commonly diagnosed in the newly-affected countries and as a result detection is difficult. Pathogen inactivation, a proactive approach, addresses a broad spectrum of pathogens, reduces the need for new testing, and maintains blood continuity and availability even during a pandemic.

As one of the greatest medical advances, blood transfusion in the future will become even more of a personalised and precision medicine as new cellular therapeutics and risk reduction methods are implemented.

As a dynamic partner, ILEX provides solutions that create value for blood transfusion services in Africa.

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Supporting Blood Transfusion Services now and into the Future Collection – Processing – Testing – Patient COLLECTION Blood bags, Apheresis equipment, Sealers, Hemoglobin testing, Red Cell Collection, Transportation Systems PROCESSING Pathogen Inactivation, Component Processing, Filters TESTING Nucleic Acid Testing, Viral Load Determination, Laboratory Information Systems PATIENT Blood bags, filters, product transportation systems

ILEX - for Innovation Tel: +27-11-804-4004 | Fax: +27-11-804-1120 E-mail: mail@ilex.co.za | sales@ilex.co.za

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WESTERN CAPE BLOOD SERVICE

BLOOD BASICS Blood is a complex component of the human anatomy. Here is a rundown of some of the basics: • Every person belongs to one of eight blood types or sub-types which derive from the four larger ABO blood groups – A, B, AB and O. The Rhesus system further divides these groups into positive and negative, leaving eight in total: O-, O+, B-, B+, A-, A+, AB- or AB+ • ABO blood grouping is determined by the correlation of visible clumping in mixtures of plasma, the liquid component of blood, and the red cells, which carry oxygen • Not all blood types are compatible. For example, if a blood group A patient is given blood group B, the anti-B antibodies in their plasma will destroy the red cells in the transfused blood • Blood group O individuals are known as universal donors and are therefore the most sought after by bodies such as WCBS. They lack A and B blood group antigens which makes it possible for their blood to be given to all ABO types • AB+ blood group individuals are known as universal recipients, meaning they can receive all ABO blood types • Some individuals are born with rare blood types, making them difficult to match to regular blood groups

60 | Africa Outlook issue 85

“With many long-term relationships with our suppliers in place, and due to the fact that security of supply is in both parties’ interests, we successfully navigated the highest level of lockdown and at no stage were inadequate supplies of consumables a threat to ongoing operations.”

At the other end of the chain, customer relationships have also been in the spotlight. Again, WCBS holds long-established, well-developed partnerships with both public and private medical providers/insurers, with each sector accounting for roughly half of the service’s revenue.

“When we have problems, they are usually quite easy to resolve,” Bellairs continues. “Although due to the impacts of COVID-19 on the local economy, we do anticipate increasing difficulty in managing bad debt, as well as a migration of insured patients to the state sector, which could put extra strain on income.

“In addition, as the exchange rate worsens, this will drive up costs of those items which are sourced internationally, which can be mitigated in the short-term by forward covering US dollar-based purchases.”

SAFEGUARDING THE FUTURE As the conversation moves towards what lies ahead for WCBS and the future of the organisation, it quickly becomes clear that education and staff development form an important part of ensuring an ongoing success story.

Here, Bellairs outlines the crucial work of the Learning & Development Department, a body which provides in-house training and organises external learning activities for colleagues.

All technical and medical staff are required to participate in regular education exercises, with continuous professional development another key priority.

“It is important for staff to stay abreast of new developments – often through peer-reviewed publications

COURIERIT At Courierit, we believe it’s not just about blood. It’s about saving our Nation. The Western Cape has been the epicentre of the coronavirus with the infection rate just under Gauteng, which accounts for the highest number of confirmed cases in South Africa. The current pandemic has placed considerable strain on our medical institutions and medical staff. The efficient transportation of blood to various medical facilities has become a pertinent factor in the ability of medical personnel’s capability to save lives.

Courierit has been the official carrier of the Western Cape Blood Service for over a decade. The decision to entrust Courierit with the mammoth task of transporting the precious cargo was largely attributed to the Company’s extensive portfolio of working with various departments within the public sector, including the Department of Health, The Western Cape Department of Education and South African National Blood Association.

Courierit earned its reputation of being the preferred last mile service provider for various organs of state based on its strict health and safety measures and security protocols.

Courierit remains committed to our partnerships and will continue to improve our service offering. We have heightened our health and safety protocols to ensure that this precious cargo remains safe from the risk of contamination.

The No Touch Delivery Initiative, in which customers are required to use the unique one-time pin as a means of validating their consignment, eliminates the need for any contact between the courier and the client. This highlights the brands commitment to protect its clients as well as employees.

www.ewaybill.co.za

WESTERN CAPE BLOOD SERVICE and in-house research projects, and studying evolving technologies,” the CEO adds. “This is often prompted by evolutions or revolutions in the offerings from suppliers, and the changes in the regulatory and operational environment which require constant training and development.”

Further, WCBS offers financial support to students in the form of bursaries, students who are then offered employment on successful completion of their studies. Existing staff are also supported either financially or operationally with postgraduate learning.

Away from WCBS, many staff undertake research studies with their results often presented at national or international gatherings of experts, in some cases going on to be published in industry journals.

Indeed, every other year Western Cape Blood Service involves itself in the South African National Blood Transfusion Congress, an event organised and hosted by the South African Society for Blood Transfusion. It is an important date in the WCBS diary, the next instalment slated for August 2021 in Durban.

“This four-day event showcases expert invited international and local speakers, local research presentations, and a comprehensive trade exhibition,” Bellairs says. “The congress provides a

worthwhile opportunity for any people from blood services or related fields in Africa to attend, learn, and network with like-minded professionals.”

It is a forum through which to explore and discover new ideas, something which the CEO is eager to accelerate over the course of the next year or so at WCBS. For example, in the area of distribution, it is looking into the idea of using smart fridges which will enable clinicians to order compatible blood for patients remotely, while plans to increase the availability of returnable products in order to reduce waste are also afoot.

Drones are another exciting avenue of exploration. Here, WCBS is working with the South African National Blood Service on overcoming the various logistical challenges found in some areas of the Western Cape.

This all feeds into the overarching objective for Bellairs – to fulfil demand for blood products in line with population growth in the coming years.

“Growth in terms of demand for blood products is a factor of population size and burden of disease,” he explains. “The population of the province is increasing at approximately three percent per year, and demand for blood products and related services increases at a similar rate.

The Scientific Group The Scientific Group is a clinical diagnostic and life science company with 35 years’ experience in the professional sales and service of instruments, reagents and consumables in the scientific and diagnostic healthcare industries throughout Africa.

The Scientific Group and WCBS have a longstanding relationship spanning over 15 years. It was initiated with the automation of the Donor Blood Grouping Laboratory which evolved in the automation of the pre analytics of this laboratory.

The classic tube technique methodology was in use across all blood banks and in 2005 The Scientific Group introduced full automation to the blood banks with column agglutination technology from Ortho Clinical Diagnostics.

The roll out of fully automated and semiautomated systems from Ortho Clinical Diagnostics commenced in 2006 at the seven blood banks across the Western Cape region. Over the last 14 years automated blood group testing systems have been replaced as well as updated with the revolutionary technologies from Ortho Clinical Diagnostics.

The implementation of automated systems into the blood banks benefited the organisation by offering traceability of results and optimizing the laboratory’s efficiency.

The Scientific Group is also the proud distributor of Angelantoni, an international leader in the manufacturing of cold and cryogenic equipment.

The Plasmafrost (blast freezer) range was first installed in the main Processing Lab of WCBS in January 2017 and has since then grown to several other sites in South Africa. In 2019, we proudly launched the revolutionary Hemosafe (automated and computerised blood bank refrigerator) range at the South African Blood Congress.

Being the pioneer of Automation in South Africa, WCBS has been instrumental in the success of The Scientific Group and its partners.

tsgenquiries@ascendismedical.com

62 | Africa Outlook issue 85

Bringing Innovation to Africa.

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WESTERN CAPE BLOOD SERVICE

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“Patient blood management is focussed on ensuring that when blood products are requested, they are clinically indicated and that all alternatives have been considered. This may soften demand going forward, and other opportunities are in the pipeline, like the collection of source plasma for the production of plasma-derived medical products.”

From an operational perspective, WCBS is exploring how it can reduce waste and improve efficiencies in blood component processing and laboratory testing areas – it is currently three years into a lean management programme, an initiative which the CEO says has yielded promising results so far.

Improving the donor experience is another priority and a factor which could lead to greater volumes of blood entering the system. Bellairs reveals that WCBS is planning to enable screening and completion of self-exclusion forms online, improving the 64 | Africa Outlook issue 85

overall donor experience.

Such developments leave him optimistic about what lies ahead.

The conversation closes by looking back at the lessons learned from the COVID-19 crisis, and the undoubted positives that have emerged from what has been a tremendously difficult situation for not just the Western Cape, but the whole of South Africa.

“It already appears that we have passed the peak of infections, although there are risks of second and later waves,” Bellairs says. “The impacts will be felt for many years to come, as the local economy has been deeply affected – jobs have been lost, and companies have closed.

“However, a positive outcome has been the development of healthcare capacity, and the relationships between the state and private healthcare providers have been strengthened considerably, hopefully moving us towards a stronger, more collaborative healthcare system.

“The challenges going forward will be the funding of healthcare, and sustaining the enhanced healthcare capability we have seen function so effectively in recent months to manage COVID-19.

“In addition, rather than being disrupted by COVID-19, we are now working in a new normal with the virus. It is now routine for everyone to wear face masks, everywhere, and follow the other universal precautions. Businesses, communities, and individuals have adapted to the ‘new normal’ and creative ways have been found to continue operations safely and sustainably.”

WESTERN CAPE BLOOD SERVICE Tel: +27 (0) 21 507 6300 info@wcbs.org.za www.wcbs.org.za

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Africa Outlook issue 85 | 65

JAM CLOTHING

66 | Africa Outlook issue 85

RETAIL

THE REAL FASHION DEAL Following a eureka moment during his first job after graduation, Michael Ditz and JAM Clothing have brought quality, affordable fashion to consumers up and down South Africa for more than 20 years Writer: Tom Wadlow | Project Manager: Josh Hyland

Africa Outlook issue 85 | 67

JAM CLOTHING

I

f 2020’s global health and economic difficulties have taught us anything, it is that every ounce of expenditure counts.

From the individual consumer feeling the pinch to corporations having to adapt to extraordinary circumstances brought about by the COVID-19 pandemic, this year has brought into focus the imperative of taking nothing for granted.

It is an unenviable situation for budding entrepreneurs seeking to start their commercial journey. Well before the onset of coronavirus, the startup failure rate in South Africa was around nine in 10 within two years of operation, an indication of how tough it is to monetise an idea.

Fortunately for Michael Ditz, his eureka moment arrived in in the 1990s.

Taking the entrepreneurial plunge a few years after graduating from the University of KwaZulu-Natal, he now stands as Managing Director of his own highly successful fashion retail group, JAM Clothing.

“Back in the early 90s there was so much opportunity in South Africa, relative to now,” Ditz recalls. “One of my key responsibilities while working at my former employer was the clearing of old stock. There, I met a bunch of retailers who only wanted to buy deals. These guys where buying huge volumes and coming back every month for more – it didn’t take long for the penny to drop.

“I left the business in 1992 to register my own company, MD Trading, and started wholesaling clothing to many of my customers that I’d traded with previously. The business flourished and expanded, and by December 1998 we opened our first JAM store.”

MAKING FASHION ACCESSIBLE Although Ditz admits he had it easier than those venturing into business today, the opening message about taking every ounce of expenditure seriously was just as critical for the Managing Director back in the 1990s.

Indeed, a meticulous, relentless attention to detail on costings is what underpins the entire value offering of JAM Clothing.

“TRUTH BE TOLD, OUR QUALITY IS OFTEN FAR SUPERIOR TO MOST OF OUR COMPETITORS AND AT A FRACTION OF THE PRICE. WE MANAGE TO BUY AT DISCOUNTED PRICES AND THEN PASS THE DISCOUNT ONTO OUR CUSTOMERS, UNDERCUTTING THE MARKET NEARLY ALL THE TIME”

JAM CLOTHING

Its main distribution hub and head office can be found on the same site in Durban, the beating heart of a retail network that spans 111 outlets and is about to venture online (September 2020).

The company’s goal? To make high quality fashion brands accessible to all, at a fraction of regular retail prices.

“JAM sells distressed fashion for the entire family,” Ditz says. “What that means is that we don’t buy regular stock, nor do we manufacture our own goods.

“Nearly everything we buy is either a chain store cancellation or overrun.

Often the stock was originally destined for European or US markets – so, truth be told, our quality is often far superior to most of our competitors and at a fraction of the price. We manage to buy at discounted prices and then 70 | Africa Outlook issue 85

pass the discount onto our customers, undercutting the market nearly all the time.”

Central to this is a formidable supplier network built up over more than two decades of operation, Ditz quick to acknowledge the vital role such partners play in the smooth running of JAM on a daily basis.

Relationships are built on mutual understanding of each parties’ business workings and needs, the result being a JAM offering that carries almost universal appeal across South Africa.

“As a result of the nature of our procurement we are able to pitch our brand across a very wide band of customers,” Ditz continues. “The extreme value offering coupled with the fashionability appeals to a cross section of the population.

“AS A RESULT OF THE NATURE OF OUR PROCUREMENT WE ARE ABLE TO PITCH OUR BRAND ACROSS A VERY WIDE BAND OF CUSTOMERS”

Retail Industry in Unchartered Territory

T

he world is in unchartered territory and as many retailers face the harsh reality of the COVID-19 pandemic, we are beginning to accept that jobs have been, and will continue to be lost, orders will be cancelled, and many doors will not be reopened.

Many retailers, as with many other businesses, need to rethink their digital strategies, as it becomes clear that digital transformation is no longer just a buzzword, but a fundamental path for business survival. With online sales now considered a lifeline, as the sudden shift to digital and contactless purchasing takes hold. To survive, they will have to quickly adapt or adopt suppliers that already have digital solutions in place.

It is clear that survival in this unusual time means the re-invention of your products or services and how they are delivered. It requires a deeper understanding of your audience, a keener focus on waste reduction and a commitment to your business strengths in order to deliver to new market needs.

Therefore, retailers need to rethink this new world and their place in a digital first future. They will need suppliers who are positioned to move them in the digital direction, today.

BCX provides the Dolfin Merchandising, a product that has been around for 20-plus years and integrates brick and mortar stores to online. It covers stock management, conditional and pricing promotions, reporting with an integrated warehouse and point of sale system plus Android applications that support Stock Counts and queue busting (with integrated EFT) to provide a seamless experience.

What better partner than BCX to help your business navigate this new world? At BCX, we pride ourselves on being an end-to-end digital partner for corporates, governments and retailers across the African continent.

For more information visit www.BCX.co.za

Included is the added complexity of delivering direct to the customer, previously a nice to have. It has quickly become a must have. Here, retailers need to look at their customer base and understand their requirements and expectations when it comes to online ordering, delivery and collection. There is no question that this will be a test of your business resilience.

www.BCX.co.za

JAM CLOTHING

Blue International Blue International is committed to its partnerships with retail and commercial enterprises, locally and across borders. The firm secures stores, offices, and warehouses with high-end technology, including alarm monitoring, remote CCTV surveillance, access control, and 24-hour armed response services.

Blue International has achieved unparalleled success and has become the professional security firm of choice for blue-chip retail and commercial entities, with an international footprint, who over the past 15 years have entrusted its team with all of their security requirements.

Operating as a one stop shop, Blue International provides clients with tailored security solutions and a single person contact for quick, convenient access to their services when needed.

Blue International’s state of the art monitoring centre exclusively services commercial and retail clients, employing dedicated controllers who are always watching to rapidly dispatch 24-hour armed response vehicles to attend to any breaches on site.

“We are able to sell the same merchandise in South Africa’s traditional townships and the more affluent retail centres. We avoid the regional and super regional malls – at our prices those rentals are simply unaffordable. Convenience, neighbourhood and strip malls all work well, and before the COVID-19 outbreak central business districts were also strong retail nodes, although this seems to have changed.”

RISING TO THE CHALLENGE Ditz touches on the main event of 2020, the coronavirus pandemic causing societal and economic devastation all over the world.

South Africa has suffered more than most African nations to date, largely 72 | Africa Outlook issue 85

because it is the most connected of all African nations with the most advanced economy. For JAM, this year’s events have only served to heighten its focus on financials so it can continue offering value to consumers during difficult times.

Despite facing cashflow shortages in light of lockdowns and public uncertainty over heading into bricks and mortar stores, the company has been able to continue paying its 1,000plus staff, a key priority now being to negotiate a form of COVID-19 rent relief with landlords.

It is a pressurised situation for both sides, made more complex by lease renewals and plans for new store openings, but Ditz is determined to make it work.

Blue International’s high-end access control technology enables commercial and retail enterprises to reduce financial risk by limiting employees’ access to a building or to certain facilities on site. The system can limit access to facilities, grant after-hours access to authorised employees, and provide an audit trail of entry and exit times.

Blue International secures a wide range of prestigious organisations throughout South Africa including Pick ‘n Pay, Boxer, Clicks, and The Mr. Price Group. The firm is proud to be associated with a highly entrepreneurial and innovative brand, such as JAM Clothing, and looks forward to growing its partnership with the firm as it expands further, nationally, and beyond borders.

www.blueinternational.co.za

086 100 4114 www.blueinternational.co.za

JAM CLOTHING

Triocorp

Outside and inside JAM HQ

Commitment, Dedication and Collaboration Triocorp has been a key supplier to JAM Clothing for over a decade.

During these years, Triocorp has aided in streamlining JAM Clothing’s packaging and distribution network by supplying swing tags, self-adhesive labels, and label print technology to facilitate the retailers national growth.

Since the beginning of this fruitful relationship, Triocorp’s major contribution has been the consistent and steady supply of packaging materials country wide.

Swing tags with JAM’s branding are conceptualised and printed at our Cornubia Industrial Estate facility and then provided to our on site team based at JAM Clothing, who assist in the intricate functionality of day to day product movement.

Within this space, our professionally trained technicians allocate, verify, and print swing tags and barcodes for sequencing, stock control, and dispatch.

Indeed, from the hardships the MD actually sees plenty of cause for optimism.

“On the positive side, many of our suppliers are or have been overstocked, and this has allowed us to buy very keenly and pass on the saving to our customers, who are really under severe financial pressure,” Ditz says.

“Through these really great offerings we have managed to navigate our way through the last six months.

“COVID-19 has, of course, been a reality check for everyone. We’ve had to halt all expansion plans in the short term, but what we are seeing now is the opportunity to open pop up stores.

Nearly all malls now have vacancies and we hope to take advantage of this situation.

“Everyone is feeling the pinch and I believe families are being forced to 74 | Africa Outlook issue 85

‘shop down’ – this too is playing into our hands. And although I think it’s too early to finalise expansion plans, for sure there is plenty opportunity out there for us.”

LEVERAGING ONLINE One such avenue of opportunity lies in the field of ecommerce.

Here, JAM is set to launch a new online retail platform, a development which could not have been more timely given the shift in consumer behaviour brought about by lockdowns.

It has been a sizable undertaking and is a project that has required huge amounts of planning and preparation, not least in calculating how opening up an internet-based sales channel might impact the fortunes of the company’s 111 physical stores.

Together with the JAM Clothing team, we have created a working system that is simple, efficient, and dedicated to ensuring that JAM Clothing meets its growing targets.

Triocorp would like to take the opportunity to commend Jam Clothing on its exceptional business practice and we look forward to continuing as participants in the JAM success story.

www.triocorp.co.za

For the love of labels.

Swing Tags | Thermal Transfer Ribbon | Posters Barcode Printers | Self-Adhesive Labels | Banners triocorp.co.za info@triocorp.co.za

JAM CLOTHING

CARING FOR THE COMMUNITY Corporate social responsibility is an integral part of JAM Clothing and what it stands for. Asked about the company’s endeavours, Ditz responds: “JAM has always been committed to giving back to the community, and we have embarked on various social responsibility projects over the years.

Our communities play a big part in our success story, so it’s important for us to give back.

“We have had the privilege of working with some remarkable institutions and partners over the years. One of our recent projects involved the Open Air School in Durban, which is a special needs school for physically challenged learners from grade R to matric. The JAM team took on the challenge of providing a much needed face-lift for their boarders hostel, OASIS HOUSE. Upon their return from July school holidays, the boarders were completely surprised to find a fresh, colourful new dining hall, recreation room and study hall.

“In a first-time event for Durban, JAM was also affiliate sponsor of the Street Store, a pop-up shop for the poorest of the poor. JAM donated clothing and afforded the homeless community in Durban, the opportunity to ‘shop’ with dignity and self-respect, at no cost.

“We will continue to seek out opportunities to uplift the less fortunate in the communities around South Africa.”

76 | Africa Outlook issue 85

JAM Clothing invests significant time and resources into community projects across South Africa

RETAIL

However, Ditz is well aware of the need to combine a personal, physical presence with the modern reality of how customers want to shop.

The same can also be said of how the business functions internally, the launching of a new online training platform last year showing how JAM has adapted to the challenges presented by operating a truly nationwide footprint with almost 940 permanent staff.

“We use a software package called Moodle, and every week training material is sent to store staff,” Ditz explains.

“Being a relatively young business and growing at quite a fast rate has given many individuals an opportunity to grow. We have many success stories of people starting in stores and working their way up into senior positions at head office.”

Employee motivation and development is a vital facet of JAM’s

sustained success, the MD all too aware that his business relies on the dedication of its workforce.

“You can have the best store in the best location with the best merchandise, but if your retail staff are not 100 percent committed to serving and satisfying their customers, you might as well shut up shop,” Ditz adds.

“We see this time and time again – when a store is struggling and you bring in a new, motivated team, suddenly it starts performing.”

And motivation across the board, from store staff to head office management, will be central to JAM fulfilling the undoubted growth potential that lies ahead.

Ditz signs off confidently by looking ahead at the longer term, the platform for development having been laid by the work carried out in recent times.

“Our long-term view remains positive, however, short term there’s certainly a bumpy road ahead.

Worldwide there’s a move to ‘off price’ clothing and I believe we are well positioned in the South African market.

“We are only at 111 stores, which is relatively small compared to many of our competitors, so there is plenty of scope within the country and even more opportunities in Southern Africa.

We are launching our online platform and this will give us access to a totally new market, which is very exciting.”

JAM CLOTHING Tel: +27 (0) 31 303 9670 www.jamclothing.co.za

Africa Outlook issue 85 | 77

COMPAGNIE SUCRIERE SENEGALAISE (CSS)

Securing Self-Sufficiency in Sugar The story of Compagnie Sucriere Senegalaise, one of Senegal’s stalwart enterprises and most important socioeconomic drivers, and its bid to bolster food security Writer: Tom Wadlow | Project Manager: Vivek Valmiki

C

hief Executive Officer of Compagnie Sucriere Senegalaise (CSS), André Froissard, talks to Africa Outlook about the company’s history and latest endeavours. Please note – the original interview was conducted in French and has been translated for this publication.

Africa Outlook (AfO): How was CSS born, why did you choose to create it in Senegal?

André Froissard (AF): No one better than Hubert CHOUVENC, author of the story “Des Hommes, du Sucre, aux Portes du Désert” could better describe the comparative history of Richard Toll and the CSS. The following excerpts are quoted from his story: “A long time ago, in the northern part of a country named Senegal, 78 | Africa Outlook issue 85

there was a river that flowed idly in the middle of the bush, or the desert, one should say. To the odds of its meanders maliciously set by Mother Nature, a few villages dozed off under the sun. These were small fishermen and farmers villages which struggled to survive to the whims of the river and its floods. A few tribes of shepherds pastured along the banks in search of water so precious for both men and animals. Of these hamlets, there was a village somewhat larger, just a borough not then a city, at the south of which a large plain stretched until the boundaries of a lake lost among the reeds and the papyruses. The conditions there seemed much better, water was plentiful. The river was north and the lake was south, but by another vagary of Mother Nature, the soil remained highly unyielding.

AGRICULTURE

André Froissard Africa Outlook issue 85 | 79

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COMPAGNIE SUCRIERE SENEGALAISE (CSS)

“One day something happened that would irremediably change the very face of the village, an ordinary event related due to chance: a determined man walked through Richard Toll and visited the plain. Mr. Jacques Mimran was his name. He arrived at the heart of this land located in the middle of nowhere in the 1970s, and perhaps he already knew that he would never leave again. One needed sharp imagination, or to be a visionary, to change the course of things by farming in the desert… yet this was precisely his project: to grow sugar on a salty land.

“Sometime later, he settled in the village. He took measurements and surveys, made complex calculations which no-one could understand.

Machines came one day, in large clouds of dust and engine roars, to disrupt the silence of the forgotten bush. There was a full convoy there: trucks, tractors, bulldozers, cranes and all kinds of other contraptions operated by a small army of drivers and mechanics.

82 | Africa Outlook issue 85

“ONE NEEDED SHARP IMAGINATION, OR TO BE A VISIONARY, TO CHANGE THE COURSE OF THINGS

BY FARMING IN THE DESERT… YET THIS WAS PRECISELY HIS PROJECT: TO GROW SUGAR ON A SALTY LAND”

“Workers came from everywhere, but there were not then many and every morning trucks set out for the bush and nearby hamlets to recruit villagers desirous to earn some money. The factory had finally started operating and the warehouses started filling up with sugar entirely produced in the village. It was a favourable period for the inhabitants of the locality who saw their generations multiply. The workers were pampered before giving in to the machetes of an army of cane cutters who swarmed the fields every morning during the harvesting period. Today, Richard Toll has grown into a very well-known city countrywide.

“The establishment of such an agro-industrial plant under these conditions could not happen without a few difficulties. These difficulties were primarily logistical but mostly infrastructural related. Everything had to be invented, everything had to be installed; from housing quarters to land layout and development.”

N

etafim helps the world grow more with less. Its journey started in 1965 in Kibbutz Hatzerim, a community in Israel’s Negev desert. Struggling to farm in the dry, sandy soil inspired its founders to find a more efficient way to grow crops. In doing so, they discovered and pioneered drip irrigation. This precision solution offers a rate of 90–95 percent water efficiency by delivering water and fertiliser to the roots of the plant instead of the soil around it. Drip-irrigation technology enables farmers to grow higher yields more sustainably by saving water, reducing use of fertilisers and conserving energy and labour. Such is the effectiveness of its solution that Netafim has become the largest irrigation company in the world.

With 17 manufacturing plants, 5,000 employees and 29 subsidiaries, Netafim has a 30 percent market share and earns over a billion dollars in sales per year.

It currently operates in over 110 countries, including Egypt, Algeria, Tanzania, Ghana, Nigeria, Senegal and many more. Netafim Africa has been established to help facilitate agricultural transformation in Africa, changing the economics of the country by enabling farmers to improve crop quality and quantity per hectare and cubic metre of water. It wants to fight the scarcity of food, water and agricultural land in Africa, helping the country become less reliant on food imports. This mission is vital considering that the UN estimates the African population will grow from 1.1 to 2.4 billion by 2050.

Netafim Africa works alongside governments, the private sector, international institutions and NGOs to revolutionise agriculture in Africa. It can provide end-to-end agricultural solutions to everyone from family-run farms to large agricultural enterprises.

Its family systems are off grid, benefitting from the same precision technology as other products but in a more cost-effective framework. Meanwhile, its

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digital farming solutions feature smart technologies that enable farmers to manage and control irrigation and soil nutrition remotely, from phone, tablet or computer. Netafim Africa is also able to provide a range of project-related services, including agronomical and technical support, feasibility studies and designs. It believes in transferring this knowledge to local communities to facilitate self-sufficiency.

One of Netafim Africa’s landmark projects is with Compagnie Sucriere Senegalaise (CSS). This was a turnkey project set across 3,500 acres of sugarcane plantation growing in desert conditions. Netafim Africa installed a drip irrigation system and designed a knowledge transfer programme to build a local team that could operate and control the system efficiently. The system is projected to deliver an annual harvest of between 150 to 180 tonnes per hectare.

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COMPAGNIE SUCRIERE SENEGALAISE (CSS)

Copadex Senegal Copadex Senegal has been able to support CSS over the last four seasons thanks to the supply of agricultural tires. Thanks to the support and technical monitoring of Copadex Senegal, CSS has replaced all Diagonale technology tires for Radial technology tires.

This change was made after a test demonstrating the longevity and advantages of Michelin Radial tires.

This change has reduced the hourly cost of tires by three and generated economies of scale amounting to hundreds of thousands of euros.

SECRETS TO SUCCESS The CSS’s strategy, initiated in 2007 by André Froissard, revolves around several objectives: • Allowing each department of the organisation to have the required skills for its operation at all times while providing the working conditions necessary for their optimal performance; • Ensuring the performance of The CSS by better generational transfer of skills and the development of a successful succession preparation plan.

• Developing corporate culture internally as well as with the environment; • Promoting a local HR culture to take care of employees in a more personalised way, particularly in assisting for transformation and acquisition of new skills; • Being an attractive company, capable of retaining its quality human resources and highly aware of respect for social justice and equity; • Promoting the existence of a social dialogue label with the social partners.

84 | Africa Outlook issue 85

AfO: The relatively prosperous town of Richard Toll’s local economy relies mainly on the sugar cane industry thanks to CSS. What defines your strength technically, in terms of management, products, socially and market positioning?

AF: The Compagnie Sucrière Sénégalaise, as a key player in the local economy, is a breath of fresh air for Richard Toll and represents the main funder of the municipality’s budget.

The tens of thousands of farmers and herders who permanently benefit from its actions can attest to that.

The CSS cultivates sugar cane, but it actively participates in rice production through the support it provides to thousands of rice farmers by fully covering their irrigation water bill on more than 5,000 hectares sown in double season. The company’s establishment conditions anticipated the development of the surrounding villages and quickly the problem of access to water arose. For 50 years CSS has supplied drinking water to the surrounding villages, this having also developed boreholes and basins for livestock.

These actions were reinforced thanks to the arrival of the Marie Louise Mimran Foundation, particularly in the areas of education and health.

Switching from Diagonal to Radial technology has saved tens of production days per campaign: fewer punctures and less downtime of agricultural tractors due to tires.

Finally, since the Radial tire technology has a less significant impact on soil compaction, the CSS terrain has been better preserved during the last four campaigns.

Copadex Senegal continues to support CSS through technical support and regular fleet visits and continues to offer innovative solutions in order to optimise the tire expense item.

copadexsenegal@copadex.com

Copadex Senegal, generator of solutions Copadex Senegal, which has been in Dakar since 2010, is a team of 20 people to respond to your requests for quotes and monitor your account on a daily basis.

With 40 years of experience in the tyre industry with recognized expertise, we have been the official distributor of the Michelin Group for Senegal since 2012 on car, van, 4x4, heavy goods, agricultural, industrial and civil/mining tyres. A permanent stock of more than 8,000 tyres in Dakar allows us to meet the needs of the Senegalese market and the sub-region. Copadex has a team of tyre technicians to operate throughout Senegal. In order to be part of a sustainable development approach, Copadex Senegal also offers a repair service to extend the life of tyres and avoid premature tyre releases.

Copadex Senegal Tyre importer-wholesaler Avenue Djily M’BAYE - “LE GOELAN” building BP 32396 - DAKAR - SENEGAL Phone: +221 33 889 79 40 copadexsenegal@copadex.com

COMPAGNIE SUCRIERE SENEGALAISE (CSS)

CSS is based in Richard Toll, Senegal

The strength of CSS is drawn from this early management of the human factor in its environment. As the country’s largest private employer, the CSS has sought excellence through the development of human capital and investment in technological innovation.

In all production sectors, the shareholder has not skimped on the means to procure the equipment and materials resulting from the latest innovations, which means that it is among the first in the world in terms of yield per hectare of sugar cane.

At the managerial level, Senegal’s self-sufficiency programmes in sugar, KT 150 and KT 200 have been the pretext for profound changes in human resources. Targeted recruitments of young talents trained and working in Europe, eager to return home, as well as quality training plans, have helped increase industrial 86 | Africa Outlook issue 85

results were achieved on sugar and alcohol products.

The production of white sugar is approximately 140,000 tonnes and entirely intended for the local market, while that of alcohol, a highly strategic product during this period of the pandemic, peaked at more than 12 million litres. In its future strategies, the CSS intends to market brown sugar, with a vision of development in B2B and B2C marketing. This latter product is increasingly in demand.

AfO: How do your farmers feel to be involved in your company activities?

Do they know the real impact of such a factory and its activities on the daily life of Senegalese people? yields to place CSS among the most successful sugar industries in Africa.

The results obtained in recent years sufficiently indicate the relevance of such strategic choices. Promising

AF: Horticultural and fruit farms emerge throughout the infrastructure of the Compagnie Sucrière Sénégalaise, benefiting from free water supply all year round.

GROWING AFRICA...

As world attention shifts to Africa as the future of agricultural production, companies supplying this rapidly evolving sector are poised to enjoy remarkable growth. One such company is Farm-Ag International (PTY) Ltd, a diversified specialist in the formulation, manufacture and supply of agrochemicals.

As the NUMBER ONE SUPPLIER of agrochemicals to the sugar industry throughout Africa, Farm-Ag intends drawing on its extensive experience to position itself in the broader agricultural sphere. The company’s customers include all major sugar producers from South Africa to as far afield as Sudan.

Each and every batch that is dispatched from Farm-Ag’s Durban plant is evaluated to ensure that it conforms to the highest international standards.

Farm-Ag International (PTY) Ltd focuses on providing its customers with: • Cost effective solutions to help contain escalating costs • Strong service delivery • Technical support from an experienced team Product is formulated in-house as well as imported from top international manufacturers and sold under its own Farm-Ag brand to: • Wholesalers • Directly to large scale agricultural producers • Via distributors, to end users Emphasis is placed on: • Expanding Farm-Ag’s portfolio in order to service growers of high volume crops such as sugar, maize, wheat, cotton and timber

Farm-Ag’s long term objective is to become a major supplier of agrochemical inputs for agriculture in Africa.

Farm-Ag International combines generations of experience with passion and commitment. Making it our business to understand the changing needs of your environment, by providing tried and trusted crop protection solutions at competitive prices, is not just what we do. It’s who we are. That’s why we’re proud to supply Farm-Ag products to the leading sugarcane growers in South Africa.

T +27 31 00 33 486 info@farmag.co.za ISO 9001:2008 Certified Company

COMPAGNIE SUCRIERE SENEGALAISE (CSS) There is also, as mentioned above, 5,000 hectares of rice cultivated on the perimeters of Colonat, Thiagar, Lougue Deymis, Pakh (localities of Richard Toll). In addition, there is free maintenance of equipment and other collective facilities such as canals and drains. All of this interaction is underpinned by trust and solidarity, cemented by 50 years of intelligent cohabitation.

dismissals for economic reasons have been recorded by us so far.

We have been fortunate enough to avoid draconian measures which would have resulted in the total or partial closure of the company.

AfO: How is your sector dealing with the COVID-19 pandemic that has struck in Senegal?

AfO: The health crisis has made many countries aware of the need to focus on ‘producing locally, consuming locally’. Do you think that the revival of economic activities should necessarily go through local production by boosting local industry before promoting imports?

AF: The agribusiness sector has been the least impacted by the pandemic.

Admittedly, the general preventive measures dictated by the Senegalese government have resulted in additional costs, in particular on expense accounts such as salaries and staff transport, but overall the sector has so far weathered well the impact of the pandemic and no

AF: Judging from by the content of the post COVID-19 Resilience Plan concocted by the Senegalese Government, we believe that the public authorities have become aware of the limits of an outward-looking economy, which imports its essential products including food and strategic drugs. It was proven long ago that the economic development of Senegal, in

88 | Africa Outlook issue 85

the absence of natural resources, will inevitably involve agriculture and the processing of agricultural production.

The Compagnie Sucrière Sénégalaise has just taken an important step in the process of achieving self-sufficiency in sugar in Senegal. In fact, during the 2019-2020 harvest campaign which has just been completed, we have just produced 141,000 tonnes of sugar. Achieving self-sufficiency also means removing all the constraints that block the development of local production. As long as traders are allowed to compete with local production efforts, through the all-out distribution of import licenses, self-sufficiency will remain an empty slogan.

The other big constraint on the way to food self-sufficiency remains the nagging issue of access to land. The sustained politicisation of the land issue is increasingly turning investors away in favour of new generations

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of real estate speculators who are gradually transforming arable land into real estate projects. For more than eight years, the CSS has been looking for 3,500 hectares to complete Senegal’s self-sufficiency programme in sugar.

AfO: The Senegalese Valley brings together farmers and fishermen. Because of the scarcity of fish, fishermen are turning to agriculture – yet aquaculture could be an alternative for fish selfsufficiency. Would you be open to a real partnership with the National Aquaculture Agency (ANA) to meet the food needs of the population?

AF: Indeed, years of wild fishing in our plains and rivers have led to a scarcity of catches. Many fishermen find themselves helpless in the face of this situation and are increasingly thinking of giving up this profession.

Aquaculture could be a viable solution in this area.

CONTACT EUROCHO | eurocho@eurocho.fr | +33 468 113 880 | www.eurocho.fr

The National Aquaculture Agency has been working with the CSS for years to create potential, also focusing on biological control of the weed cover of the banks of water bodies with herbivorous species of fishes.

Conclusive results have been obtained.

The CSS has helped some retirees to set up fish farming ponds. Recently, we received a visit from the General Director of the ANA to find ways to strengthen this partnership and to encourage as many people as possible to get involved in this very profitable and promising activity.

even though the CSS has made huge recruiting efforts in recent years. For this, we will quickly need new land (just over 3,500 hectares) to cultivate sugar cane in the desert.

Given the sugar supply is in deficit in the ECOWAS region, Senegal has exceptional potential to be the main exporter of sugar in the sub-region. A clearly stated political will enable CSS or other nationals to consider creating a second sugar company, drawing on the knowhow and experience acquired by our teams.

AfO: What are your short- and longterm goals and plans at a national and sub-regional level?

AF: Our short-term objectives are specific. This is to ensure selfsufficiency in sugar for Senegal in the context of environmentally friendly production. This could help boost job creation in the region and fight massive youth underemployment,

COMPAGNIE SUCRIERE SENEGALAISE (CSS) Tel: +221 33 938 23 23 info@css.sn www.css.sn

Africa Outlook issue 85 | 89

INDWE RISK SERVICES

90 | Africa Outlook issue 85

FINANCE

CHANGING THE FACE OF INSURANCE Indwe Risk Services is a South African risk and insurance advisory business that is embracing technological innovation and digitisation Writer: Dani Redd | Project Manager: Sam Love

I don’t think the insurance industry has ever been more exciting than right now. It is really a disruptive sector, with lots of opportunities to change the game.”

These words are spoken by Peter Olyott, CEO of Indwe Risk Services.

His view is authoritative, having worked in the insurance industry for close on 40 years. He started off his career as an underwriting clerk, before becoming a broker at Alexander Forbes (formerly Price Forbes), where he remained for two decades.

Peter Olyott, CEO

After leaving the sector to work with a business process outsourcing company, he was convinced by the then CEO of Indwe to rejoin the industry. He arrived at Indwe in 2009, became the Managing Director in 2012 and the CEO in 2014. Furthermore, he holds a position as the President of the Financial Intermediaries Association of South Africa (FIA) and is a board member of the Insurance Institute of South Africa.

Indwe Risk Services is one of South Africa’s leading personal, business and

Africa Outlook issue 85 | 91

INDWE RISK SERVICES

Joe Szemerei, Executive Director: Individual & Volume Business specialist risk and insurance advisory businesses. It provides bespoke insurance solutions tailored to clients’ needs, which are underwritten by South Africa’s major insurers. It was founded in 2006 as the product of a merger between Thebe Risk Services and Pretasi Brokers, established in 1903 and 1972 respectively. The company took the name ‘Indwe’, the isiXhosa and isiZulu word for ‘blue crane’, which is South Africa’s national bird, as a nod to its national heritage.

With its decades of experience, Indwe is a key player in an industry that Olyott says is rapidly changing.

“In today’s world the clients are more demanding. They require greater depth of knowledge, more advice and they want it quicker and cheaper, and they want it instantaneously so you can’t dictate when they come to you; they decide for themselves,” the CEO explains.

“I think the excitement centres on the increasingly pervasive role of technology within all aspects of the business, from the advice to the products and the services.”

“What it has done, in short, is accelerated the future,” Olyott says.

Indwe had planned on ‘going virtual’ in a few years’ time. But in March it had to transition to remote working practically overnight, as South Africa went into lockdown. Its bricks and mortar office became obsolete, to be replaced by virtual offices and online meetings. To the CEO, it was remarkable how quickly the company adapted, and how easily it could continue providing services to clients.

“Funny how when you’re under pressure and don’t have a lot of choice, things become a lot easier,” he says.

“Nobody is debating the pros and cons because there isn’t an option.

And if you wanted to stay in business you just had to adapt.”

One of the main ways in which Indwe adapted was through training its staff to use digital platforms to interact with clients online.

“You have a meeting online where everyone is about two centimetres high, which is very different to meeting face to face. The body language is pretty one-dimensional; it’s a bit like being on live television and a lot of people are not used to that,” the CEO says.

All of Indwe’s staff – including those from the sales, marketing and

92 | Africa Outlook issue 85

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INDWE RISK SERVICES service divisions – are being provided with media training to improve how they present themselves on virtual platforms, with further specialised training for those who need it in their roles. Although Indwe might go back to some face-to-face meetings, the CEO believes that the company’s future is virtual. Before the pandemic, it had already established its first virtual office in Limpopo, which it will be running as a pilot project over the upcoming year. It is likely that Indwe will expand this model into Southern Africa, something that will allow it to operate in multiple new locations.

“Before, you had to pay for the cost of bricks and mortar, but now, as long as you’ve got bandwidth and Wi-Fi, you can basically employ in a lot of different towns, without going to the expense of setting up an office,” Olyott explains.

COVID-19 has also accelerated Indwe’s digitised sales and marketing strategy. It recently launched its first

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

Peter Olyott: “Very. We could not have a business without our partners. We make sure that we have sound business relationships with our insurance partners and also our outsource business partners, who handle value chains, IT systems, and upfront underwriting on our personal book of insurance. And then we have other product service providers who provide replacement glass, and others who provide cars in the event of crimes or people having accidents.”

94 | Africa Outlook issue 85

app, BluPixl, which it has been working on for the past couple of years. The app allows customers to compare and purchase insurance solutions on their phones; request quotes and get advice on managing policies and submitting claims through a chatbot.

“In launching BluPixl, we want to bring convenience, choice and customisation to the fingertips of South Africans. Not only does the platform enable consumers to shop and experience insurance the same way they do with everyday goods and services, it also serves to assist them in making informed choices,” the CEO says.

STAYING POWER – EMBRACING DIGITISATION According to Olyott, Indwe plans to stay ahead of the curve by embracing digital innovations.

“Our main focus is integrating technology into everything that we do,” he explains.

In November 2019, the company launched RiskTech®, a drone survey and risk identification offering. Drones are a safe and accurate way to quickly acquire high-quality aerial images, and can also be used for 3D modelling, thermal imaging and terrain analysis.

They can be used alongside other technologies (such as ground-penetrating radar, or GPR) to conduct comprehensive assessments of energy distribution networks, water treatment plants and much more, identifying environmental and mechanical risks.

This assessment enables insurance cover to be fine-tuned, and claims to be fast-tracked more quickly, meaning drone technology is not just a game changer in insurance surveys, but also in crisis management.

“The business really seems to be taking off, pardon the pun,” Olyott quips.

Indwe has also integrated all its clients onto GIS mapping. “If a disaster should strike in South Africa, we can isolate our client businesses and give immediate advice and updates, as well

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Africa Outlook issue 85 | 95

INDWE RISK SERVICES

Yolande van Esch, Financial Director as quickly find out how many clients will be affected. It will improve our response to clients when these things occur,” the CEO continues.

Research and Development is an integral part of Indwe’s offering as an organisation – the fact that Olyott has a background in R&D should come as no surprise.

“Insurance is notoriously behind the times,” he says. “Some of the products we sell today are products we sold when I entered the industry, which tells you a lot. We are pushing to upgrade products to the requirements of today’s consumer-led business, and we use technology to do that.”

But it is not just its technological aptitude that stands Indwe apart.

The company also boasts decades of sectoral expertise of the integration of risk management and insurance.

It is 100 percent locally owned, which means it can make decisions quickly, without having to consult any international shareholders. But in this case, local does not mean small.

“We are probably in the top five in terms of size, including the international companies as well. We have a very strong branch network and partners across Africa,” Olyott says.

Indwe is committed to expanding its 96 | Africa Outlook issue 85

offering. It recently branched out into broader financial services, providing life insurance, pensions and retirement funding in partnership with Sanlam.

Furthermore, it has also recently launched a new business, Acuideas, an insurance product and service distributor of independent brokers – a venture enabling Indwe to focus on helping develop emerging black businesses.

But despite its ambitious and expanding offerings, the company continues to focus on what is most important – the client.

It adopts an “Ubuntu” approach to business, a Nguna Bantu term referring to the essential virtues of humanity and compassion. It will not pursue any business goals that compromise its integrity, and prefers to engage in sustainable, long-term partnerships with clients – hence its preference for providing customercentric, bespoke insurance solutions.

“For our commercial clients we have something called a business review guide, and it’s not an insurance tick box, it means really understanding the client’s business. We can marry that customer business knowledge to insurance and provide a more bespoke offering,” Olyott explains.

Jacques Jordaan, Executive Head Operational Support

Steyn McDowall, Executive Director: Business & Specialist Insurance

EMPOWERING THE SECTOR The “Ubuntu” approach also informs Indwe’s approach to the sector, where it is a key player in championing black empowerment.

It puts the principles of B-BBEE (Broad-Based Black Economic Empowerment) into practice through a number of initiatives. First, it aims to advance transformation and equal representation within Indwe (which extends to gender as well as race).

It is also committed to upliftment of the communities in which it operates, through focussed CSR initiatives.

The firm is also an accredited training provider, offering training and skills development programmes for employees. Bursaries and loans are on offer for those staff members desiring to go onto further study. Furthermore, it runs a year-long training programme equipping graduates for future employment within the insurance industry. The scheme is based on empowerment principles and has been developed to address the shortage of black professionals in the sector.

Another part of Indwe’s empowerment initiative is Project 300 – the goal of establishing at least 300 more black insurance brokers over the next few years across the

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“The man who runs the Acuideas business for me is also the chairman of the transformation council of the FIA. We will be looking to support even more black brokers with buying power, mentorship and coaching going into the future,” he says.

LOOKING FORWARDS

Dicky Pillay, Executive Head: Acuideas country. It plays an ever-increasing role in developing independent black brokers through its Acuideas business and, in his position as President of the FIA, Olyott further encourages more inclusion within the financial services sector.

Over the upcoming year, Indwe will continue to focus on its key goals of digitisation and black economic empowerment.

“We just want to carry on doing what we’ve been doing, but better,” Olyott says.

“The days of people trying to be all things to all people is gone.

Specialisation and diversification are required – it’s impossible to be good at everything.”

Because of this, Indwe is seeking to diversify into sectors of the economy where it sees growth, and where there is an opportunity that matches

its service offering. It is particularly interested in the rescue and conflict sectors, which require a lot of risk management – it is here that its newly developed RiskTech® will come to the fore.

And in a more general sense, it is clear that Indwe’s embracement of innovation will continue to stand it in good stead as the company continues to reinvent itself in the dynamic, rapidly transforming insurance sector.

INDWE RISK SERVICES Tel: +27 (0)11 912 7300 indwe@indwe.co.za www.indwe.co.za

Africa Outlook issue 85 | 97

FROST & SULLIVAN AFRICA

Hendrik Malan and his team

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GROWTH Strategy consulting and intelligence firm Frost & Sullivan helps businesses realise their growth potential and take advantage of the opportunities Africa has to offer Writer: Dani Redd | Project Manager: Sam Love

Africa is a big place. There are 54 countries, more than 1,500 languages and numerous religions. There are a lot of challenges operating across such a large, diverse continent – weak infrastructure being one of them.

“People interested in business opportunities here often look at statistics concerning the entire continent, and don’t realise how challenging it is to take advantage of all the opportunities on offer.”

This is where Frost & Sullivan comes in, the opening words being spoken by Hendrik Malan, its CEO for Africa.

Founded in the 1960s with the goal of identifying, monitoring and analysing emerging technologies and markets, it is now a strategy consulting and marketing intelligence firm, combining an understanding of growth and innovation with sector-specific knowledge to help countries and governments develop and expand.

Its clients are typically from the investment community, the public sector (trade agencies and economic development organisations) and the larger corporate market. The company gathers ongoing commercial and technical intelligence from across the

globe, which it uses to help its clients achieve the best possible outcomes for its expansion endeavours.

THE SCALPEL APPROACH Frost & Sullivan takes what Malan refers to as a ‘scalpel approach’ to

driving growth.

“The scalpel approach is about evaluating each and every initiative in its own right and combining these initiatives in an understanding of what it might mean for the organisation,” the CEO explains.

CAREER SNAPSHOT

HENDRIK MALAN CEO OF FROST & SULLIVAN AFRICA “I was fortunate enough to land a fully paid scholarship to do my MBA at a Belgian business school. At the end of the engagement, I went on placement with a company and did a consulting project on digital disintermediation. After working with the Managing Director for two months and solving the challenge, I was completely hooked.

The problem-solving aspect, interacting with senior leadership, the complexity of the engagement – everything just appealed to me and I decided that this was what I wanted to do with my career.

“I joined Frost & Sullivan almost 15 years ago when they launched their first dedicated presence in Africa. I was working for Deloitte’s Innovation Division at the time, and the progression to Frost & Sullivan’s growthfocused consulting was a natural one. I took over operations from my predecessor in 2012 and have not looked back since. The quality of projects and stakeholders we get to work with is tough to beat! Every year delivers new challenges and new opportunities.”

Africa Outlook issue 85 | 99

FROST & SULLIVAN AFRICA

CASE STUDY

34SOUTH – A SHIP RECYCLING FACILITY IN SOUTH AFRICA Growing environmental and labour concerns in the global shipbreaking industry present a desperate need for greencompliant ship recycling facilities.

Shipbreaking yards in Southeast Asia and the Middle East demolish obsolete vessels under rudimentary conditions through a practice termed ‘beaching’, which inevitably pollutes the ocean and its surroundings and creates unsafe working conditions.

Frost & Sullivan Africa recently completed a full commercial assessment for a proposed green facility on the west coast of South Africa. The planned ship recycling facility, 34South, offers a prime location for end-of-life vessels passing through the Cape of Good Hope to avoid the tolls of the Suez Canal. This is a great opportunity for South Africa to play an important role in industry reforms.

100 | Africa Outlook issue 85

“This is important because innovation can be quite a ‘fluffy’ space. By which I mean that although a critical measure in principle, as soon as you get into specifics it becomes very difficult to measure. We tend to steer away from innovation terminology and focus on growth, as it is more tangible – we can ask questions about whether the business is moving in the same direction as the market, the current technology and service models being used.”

The company takes the scalpel approach to a client’s growth portfolio by unpacking the specific initiatives feeding into the overall growth strategy.

This includes both inorganic growth – achieved through mergers and acquisitions – and organic growth, achieved through market expansion and putting out new products and services. Internal development and R&D also factor into growth. Frost & Sullivan takes all these components into account when evaluating whether a business’s growth strategy will deliver its aspirations, year on year.

It is also necessary to ground these aspirations in the context of Africa’s operating environment, which Malan explains can often be very challenging, and which not all businesses are prepared for.

“A practical example is that a lot of times people will look at the population size of Nigeria and think, ‘oh great, now we can access a massive market’.

But our response would typically be, ‘but how are you going to get your product to them?’ It’s important to think about infrastructure – there is virtually no cold chain infrastructure here, even in the main urban centres.”

With its in-depth knowledge of operating on the African continent, Frost & Sullivan can quantify risks and opportunities, making targeted recommendations on how to mitigate the former and take advantage of the latter. This local context is combined with a global perspective on risk, innovation and growth derived from a

team of over 1,200 analysts and consultants, who are based in 45 offices across the globe.

As well as relying on the firm’s expertise, Frost & Sullivan Africa partners with engineering firms, finance firms, legal firms and even artificial intelligence companies to deliver its projects.

“The days of developing projects in isolation are gone; so is being a ‘one stop shop,’ Malan says. ‘We need a broad range of specialised skills to ensure actionable recommendations.”

To Malan, it is not just Frost & Sullivan’s expertise that distinguishes it from other growth consulting and market intelligence firms. He also believes the company’s core values of integrity, collaboration, excellence and curiosity stand it apart.

“Our values are a critical part of our operations. We integrate them into our projects, discuss them weekly during our team meetings and let them direct our future focus. We constantly try to evaluate whether the values we push externally (through marketing) align with what we live internally,” the CEO says.

LOOKING AHEAD As an intelligence firm, Frost & Sullivan is aware of the potential short- and long- term effects of COVID-19.

According to its research, GDP in 2020 in Africa is expected to decline by 2.5 percent on average, although it will rebound in 2021 to approximately 2.5-3.0 percent (which is lower than pre-COVID levels). However, the pandemic has not deterred Frost & Sullivan from making ambitious plans for expansion and growth in the upcoming year.

One of its key focus areas is in integrating AI into its delivery models, something that is not without its challenges.

“The concern I have around artificial intelligence in Africa particularly is incomplete datasets. Any artificial system needs to have access to quite a significant amount of data and

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CASE STUDY

BOTSWANA SEZ MASTER PLANNING Botswana is one of the most stable economies and democracies in Africa. The country’s economy is largely dependent on diamond exports, but a stagnating global market and ageing mines means Botswana needs to diversify. Development of specialised industrial parks or Special Economic Zones (SEZs) is the best way to circumvent issues such as bureaucracy and the lack of infrastructure.

Frost & Sullivan developed the broader SEZ strategy for Botswana in 2019, and is now supporting the Special Economic Zone Authority (SEZA) with developing detailed masterplans for two of the zones – one in Gaborone focused on financial services, and the other in Francistown, focused on logistics. These projects are expected to provide the needed catalysts to develop other industries in Botswana, allowing businesses to take advantage of the opportunities the country has to offer.

information to make intelligent decisions,” the CEO explains.

Another potential issue is that in Africa there is a reluctance to consider AI technology because of a lack of information and on the ground knowledge about it. This is a view Malan does not subscribe to, although he does believe that any data inputted into AI needs to be verified by human knowledge and experience.

“For Africa I think there is a role to be played by artificial intelligence, especially in consumer markets. The African consumer is not particularly well understood, as until quite recently there was a distinct lack of retail infrastructure, but it is now evolving

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The International Energy Agency (IEA) estimates that gas demand in Africa will double in 2040, and there is interest across the region through the new gas pipelines that are completed and underway. We also have increased LNG port developments which is a suitable alternative as natural gas is developed. In South Africa, for example, the gas discoveries, including Total’s Brulpadda, will provide supply in the long-term, while local and regional gas resources, including LNG, can be utilized for the immediate need.

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quickly,” he says.

This year, Frost & Sullivan ran a couple of trials with an AI partner, with the goal of becoming comfortable with applying artificial intelligence.

“What I learned is that a lot of what artificial intelligence can give you is sentiment. Sentiment towards a particular industry or a particular government – there’s a lot you can pick up through social media chatter, which you can then use to gain an understanding of where the market might be moving towards, or the level of political dissent,” Malan says.

Over the next year, Frost & Sullivan is looking to use AI to learn more about consumer sentiment and political stability in high-risk countries.

It is also looking to mature its implementation capabilities, helping

international companies to begin doing business in Africa.

“The majority of western managers find Africa to be quite an attack on the senses – the noise and traffic can be a shock for someone who isn’t used to travelling in developing areas. We want to help facilitate that introduction; to help foreign businesses find their ‘Africa legs’ by showing them around and guiding them through certain aspects of starting a business here,” Malan explains.

With its in-depth knowledge of the continent and scalpel attitude to growth, Frost & Sullivan is more than equal to the task.

FROST & SULLIVAN AFRICA Tel: +27 21 680 3260 rebecca.mabika@frost.com www.frost.com

Africa Outlook issue 85 | 101

NEW SOUTHERN ENERGY

102 | Africa Outlook issue 85

ENERGY & UTILITIES

ELECTRIFYING O AFRICA WITH RENEWABLE ENERGY New Southern Energy is spearheading a solar revolution in South Africa and beyond with its smart photovoltaic solutions Writer: Dani Redd | Project Manager: David Knott

n the African continent, around 600 million people lack access to electricity.

One reason for this is because Africa’s power infrastructure doesn’t extend to the continent’s remoter areas. But 110 million Africans without electricity live in urban areas – prohibitively high costs prevent them from establishing a connection.

David Masureik thinks he has found the solution – solar energy. It is his goal to help bring clean, renewable energy to the African continent. His reasons for getting involved in the industry, he says, were threefold.

“One, was the fundamental need for the electrification of the African continent, which is necessary for growth and sustainability,” he says.

“Two, was from an environmental aspect – it is the most sustainable way to electrify the continent. And third, it’s a blue-sky opportunity with huge potential growth. All those things combined led me to start the company, which has been growing from strength to strength.”

The company in question is New Southern Energy, which Masureik founded in 2011 in South Africa, along with partner Deepak John.

“We both come from a business background,” Masureik adds. “We saw the opportunity to make a good case for renewables and thought that was lacking in the market. There was a lot of technical expertise but also a lot of technical scepticism from potential clients and financial backers.”

The founding duo began a dialogue with them, trying to explain how and why solar technology was feasible.

After they’d encouraged their first buyer, they built a committed team around the project, and have grown the business from there.

It is, Masureik explains, an exciting sector to be working within.

“On a purely fundamental level, the opportunity is vast – a Pan-African opportunity with huge chances of growth and investment,” he adds.

Africa Outlook issue 85 | 103

NEW SOUTHERN ENERGY However, the industry is not without its challenges. Masureik outlines three macro factors impeding its growth: political nuances; regulatory processes; and doctrines concerning renewable energy. A fourth factor is access to capital – banks have regulations and risk mitigations that have meant uptake of solar energy has been slower than desired. But despite these challenges, he remains optimistic.

“It is changing and getting better.

There is definitely more of an open mind and a push to adopt renewable technologies on a large scale by most governments these days.

Furthermore, as banks and lenders get more comfortable and familiar with our product, it will improve,” the CEO comments.

For Masureik, it is imperative that solar energy succeeds – not just to generate profit, but because he believes it is Africa’s only hope to electrify. This is because building big power infrastructures and laying down power lines is a far more difficult process than setting up solar farms.

“With solar energy you can generate at source, which means you don’t have to have large infrastructure and power lines to generate electricity,” he explains. “You can drop down a microgrid to power batteries and generators anywhere you like, even in areas where the grid is never going to get to.”

PIONEERING PHOTOVOLTAICS

CASE STUDY: NICOLWAY This project was intended to reduce the energy consumption bill of the Nicolway Mall, in Bryanston, through utilising 15 to 20 percent renewable energy (the rest being supplied by the grid).

A 1.2-megawatt system was recently installed, using Canadian Solar PV modules and 33 27-kilowatt Solaredge invertors. The system’s performance will be continuously monitored by New Southern Energy’s O&M department – data will be accessed via an online database.

104 | Africa Outlook issue 85

And that is what New Southern Energy has been encouraging its customers to do.

In the nine years it has been in business, the company has continued to offer turnkey solutions in renewable energy. Services include complementary initial assessments, installation, grid maintenance and even help in sourcing financing. It can install either grid-tied projects for sites connected to the national grid, or microgrid solutions across Africa for locations with no grid access.

“In the hospitality sector we typically do a lot of off-grid applications, generally for high-end lodges in remote places. They need to run 24-seven on a diesel generator – we convert them to run predominantly on solar and batteries, and provide a full utilities service. We put down the electrical infrastructure, we put down the energy supply, and manage the entire grid, so to speak,” Masureik says.

FIMER FIMER offers one of the broadest lines of products for commercial and industrial applications. The offering includes a powerful line of three-phase string inverters for photovoltaic (PV) systems, including the PVS-50/60 and the PVS-100/120.

These products guarantee high total efficiency and reliability while optimising the total cost of ownership in mid-to-large solar projects. The systems are complemented by a series of cloud-based advanced communication services which simplify the integration in smart environments.

Some of the benefits of these highpowered inverters: • High power density: Solar projects that have FIMER installed will require fewer inverters installed to get the same power output; this saves time and costs on the installation, commissioning and maintenance.

• Dual-stage topology: Enable greater energy production, which helps to produce more energy, provide a faster ROI and save the business more money over the life of the system.

• An all-in-one system: The inverter systems have been designed to include everything to reduce the need for external materials and components which makes for a tidier install and reduces costs further.

• Flexibility is key: Mount the inverters horizontally or vertically on ground or rooftop installations.

• Made in Italy: All of FIMER’s string inverters are designed, developed and manufactured in Italy.

The PVS-50 comes with three independent MPPT and two power ratings, 50 kW and 60 kW. The PVS100 comes with a choice of two or six independent MPPT with two power ratings, 100 kW and 120, and both options are ideal for roof or groundmounted solutions.

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FIMER’s PVS-50/60 and PVS-100/120-TL are both all-in-one high-power string inverter solutions and are perfect for ground mounted and rooftop installations for mid-to-large commercial and industrial applications.

These products guarantee high total efficiency and reliability, while optimizing the total cost of ownership. The systems are fully integrated with the FIMER digital platform, it provides advanced functionalities like remote monitoring and export limitation control.

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NEW SOUTHERN ENERGY Joubert & Seuns This system was designed and constructed to generate renewable power by harnessing solar energy and converting it to AC power

New Way Established in 1983, New Way Power is a proudly owned subsidiary of the industrial, JSE-Listed enX group.

Our expertise in the design, manufacture and aftersales of quality generators is unrivalled. Our stateof-the-art manufacturing facility in Johannesburg ensures our solutions are locally manufactured in South Africa, affording us a competitive edge in the power generation market.

Our renowned international partner brands Baudouin, John Deere, Mitsubishi and Grupel, enable New Way to deliver the best suited power solution in many diverse applications.

With product offerings ranging between 20KVA and 2500kVA, and in various build configurations, our diverse customer base covers the, agricultural, data centres, IT and telecommunications, healthcare, mining and construction industries.

Other sectors the company works in are agriculture, retail, manufacturing and property – solar installations are suitable for anywhere with both a large energy consumption and a high cost of energy. Many grid-tied solar systems are able to beat the energy grid rate, allowing an organisation to save money while reducing its carbon footprint.

One recent project that Masureik is particularly proud of is the PV installation at Nicolway Mall.

“The construction pattern fits perfectly with the solar panels,” he comments. “It is a good positional revenue generator for their properties.

They get a good return on their investment and they view it much like an additional tenant that increases the value on their property. It was a very high-end mall and a very high-end installation, so we benchmarked it as a top-quality product.”

Another pioneering project is the installation of a floating PV system for an agricultural client – although 106 | Africa Outlook issue 85

the technology has been adopted elsewhere, this is the first of its kind in South Africa. New Southern Energy embarked upon this pilot project in order to gain experience with floating PV systems, to see how the technology works and how well it performs.

“But it also ticks a few boxes in terms of land use,” the CEO adds.

“From an agriculturalist’s perspective, they have bodies of water available and don’t want to use land where they could plant crops. It also mitigates evaporation, which helps with water shortages, and the cooler environment helps the PV solar to perform better.

These three things combined were a conceptually nice idea.”

The pilot project was successful, and New Southern Energy has ambitions to roll out similar installations across other plots. However, the cost of installation in South Africa is still high, as the floating mould structures need to be imported from Europe, which means the technology is prohibitively expensive for some organisations.

Our core business model covers locally manufactured power solutions, short term and long term rentals, after sales support and spare parts for all our premium brands.

For the past four years New Southern Energy, a valued partner in solar integration, has turned to New Way for our custom product to compliment and back up their Hybrid grid-tied and off-grid solutions in remote African locations. New Way offers innovative solutions to the application requirement.

With offices in Johannesburg, Durban and Cape Town and a highlyexperienced team, we are perfectly positioned to deliver and support an extensive, customised range of prime and standby power solutions in South Africa and the Sub-Saharan surrounds.

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Built For Africa ∙ Locally Manufactured ∙ Reliability ∙ Quality & Service

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NEW SOUTHERN ENERGY

Golden Arrow Training Centre A solar energy system was proposed for the Golden Arrow Training Centre in Phillipi, Cape Town. With an aim to reduce the municipal electrical bill by utilising the available sun energy, the new solar system will supply the training centre with sustainable energy, reducing municipal demand and shaving load spikes. An initial 25.6kWp system was built in 2018 and a 25.92kWp extension was added in 2020, bringing the total system size to 51.52kWp.

ENERGY & UTILITIES “WE ARE USING NAIROBI AS A BASE TO SERVE THE EAST AFRICAN MARKETS; TRYING TO PROVIDE A GOOD QUALITY SERVICE WE SEE AS PARTLY LACKING THERE. FUNDAMENTALLY THE MARKET IS VERY POSITIVE – IT LOOKS GOOD FOR MEDIUM TO LONG TERM” Alongside its turnkey offering, Masureik believes that another reason for the company’s success is its strong relationships with suppliers.

“We are essentially an EPC – an engineering, procurement and construction company – so once we design a system, we need to procure it. We don’t hold any stock; we rely on our key suppliers to hold stock on hand and to supply stock for projects when we need it at a competitive rate,” he explains.

Because of this, suppliers are of paramount importance, and New Southern Energy is always looking for further ways to involve them in projects and solution-finding exercises.

However, COVID-19 inevitably created delays and shortages within the company’s supply chain. Masureik explains that these difficulties have started to ease off since June, with various national lockdowns becoming less stringent.

“The biggest challenge we have at the moment is with the solar panels themselves; we have supply issues coming out of China, not only from COVID but also from manufacturing issues – there have been some fires and disasters in their supply chain, which has affected global supply,” he says.

CONTINUING TO ELECTRIFY Despite this issue, the CEO is confident in the company’s future growth and expansion. Indeed, the company has recently expanded inside the Kenyan market.

“We have been there for a couple of years and are slowly starting to get traction and have some interesting projects on the go there. We are using Nairobi as a base to serve the East African markets; trying to provide a good quality service we see as partly lacking there. Fundamentally the market is very positive – it looks good for medium to long term,” Masureik says.

In the upcoming years, New Southern Energy aims to continue expanding in Kenya, becoming a bigger player in the country’s renewable sector.

It would also like to expand into other countries across the continent, such as Botswana, working towards its goal for Pan-African electrification.

A third and final objective is to integrate vertically with an energy fund, in order to help finance an increasing number of projects.

With an increasing interest in renewable energy across the African continent, New Southern Energy looks set to play its part in electrifying the region.

NEW SOUTHERN ENERGY +27 (0) 11 805 0582 info@newsouthernenergy.com

Africa Outlook issue 85 | 109

LANDMARK AFRICA

BUILDING LANDMARKS Landmark Africa has executed mixed-use developments in Africa, creating a unique set of business, leisure and lifestyle destinations across the continent Writer: Dani Redd | Project Manager: Eddie Clinton

110 | Africa Outlook issue 85

CONSTRUCTION

P

aul Onwuanibe grew up between two cultures.

“I had an interesting start to life in that my parents were diplomats in the UK; although I maintain dual citizenship, I see myself as a fullyfledged Nigerian even though I was born and grew up in London. At the age of 10 my father decided to send me to boarding school in Nigeria because he wanted me to have that Nigerian experience. With hindsight, it was an excellent decision. A lot of my early influences and relationships came from there,” he recalls.

Onwuanibe studied architecture to degree level in University of Nigeria, but after he achieved the prestigious RIBA certification in the

UK, concluded it was not where his long-term interests lay.

“I realised I didn’t really like the detail of architecture, although I enjoyed the imagination and creation of it,” he explains.

Following three years working in an architectural practice in the UK, he joined a property management and construction company, a position that took him to over 60 countries, opening over 200 offices. He also worked with the founder of Regus, who inspired with his entrepreneurial journey of turning a €200,000 company into a multibillion-dollar investment in eight years.

“I learnt a lot about property, human behaviour, city infrastructure, finances, supply chain, and about the commercial needs of businesses in the global marketplace. I also appreciated the importance of having a good office services platform within a certain sector,” Onwuanibe says. “I eventually decided it was time to embark upon my own entrepreneurial journey.

And that’s when I thought of Landmark.”

Africa Outlook issue 85 | 111

LANDMARK AFRICA

Paul Onwuanibe, CEO

THE KEY FIGURES

$80 MILLION

CURRENT ENTERPRISE VALUE

$300 MILLION

CURRENT ENTERPRISE VALUE

$1 BILLION

PROJECTED ENTERPRISE VALUE AT EXIT

250,000 SQUARE METRES LAND HOLDINGS

220,000 SQUARE METRES

PROJECTED CONSOLIDATED GROSS LEASABLE AREA

3.2 MILLION

VISITORS A YEAR

112 | Africa Outlook issue 85

He started Landmark in 1997 in London. The aim? To help smaller businesses access well-located, highend office spaces at a reasonable cost, thereby enhancing their brand’s image. The name Landmark, he explains, epitomises ‘image, ‘destination’ and ‘location’.

Before long, Landmark was operating across seven different European countries as well as the city of New York in America.

“I then thought to myself, ‘we must really do this in Africa, because Africa is so undersupplied; very virgin and very new and in dire need of an office network platform,’” its founder explains.

In 2003 Landmark Africa was born.

It opened offices across four different locations on the continent over the period: Johannesburg, in the south; Lagos, in the west; Nairobi, in the east, and Cairo, in the north. At the time, big international players such as Dell, Siemens, Google and Microsoft had recently moved into Africa – many of these companies became Landmark Africa’s clients.

Fast forward to the present day and Landmark Africa has transformed from solely being a property development company to creating a set of business, leisure and lifestyle destinations that are unique to Africa.

“We have every sector and every service within our ecosystem. Health facilities, education facilities, offices, business facilities, F&B outlets, hospitality, sports and retail. We even have the only in-city private beach on the West African coastline, so we believe we have developed a vastly different and unique live, work and play platform,” Onwuanibe says.

PIONEERING MIXED-USE DESTINATIONS IN AFRICA It is not just Landmark Africa that has changed, but also the sector it works in.

“The property development industry is changing dramatically in Nigeria,” Onwuanibe explains. “It’s a

ELFAD ELFAD is a sewage management company which uses ‘biogas sewage management technology’ to treat sewage and wastewater.

Our anaerobic digestion system uses fixed dome anaerobic digesters which do not require air blowers (oxygen), chemicals and dozing pumps to treat sewage and wastewater.

“We have been battling with activated sludge systems for a decade now with several maintenance issues until we gave ELFAD’s biogas sewage treatment system a big trial at Landmark Village,” says Landmark’s head of Facility. Landmark Event Center-Oniru, VI, Lagos.

“We have been using this system for more than a year now, and are planning to engage ELFAD again to convert the activated sludge systems at Landmark Towers.”

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lot more mature and evolving; there’s a big increase in institutional developers and it’s a lot more diversified than it used to be. There’s a larger view of property as an economic driver.

Before, developers literally used to just develop properties for their own wealth store, and pass it onto their children and grandchildren, but property is now being used as an economic tool.”

He proceeds to outline further benefits, such as improved transparency within the sector, more financial opportunities, and businesses beginning to embrace technology and sustainability. But there are challenges too.

“There’s a commodity collapse from time to time, which is a key risk for investors, and fiscal slippage, as a result of things like this. Sometimes there’s a big disruption from the reform agenda the government have set up – the state and geopolitical environment is important to property.

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Africa Outlook issue 85 | 113

LANDMARK AFRICA

Developers are still trying to grapple with the bureaucratic nature of the regulatory environment and the multiplicity of taxes.

“We’re not in a continent where infrastructure development appears to be a priority to the government, so a lot of private organisations have to create their own infrastructure at great expense and pain” the CEO says.

Against this geopolitical and economic backdrop, it is easy to see why mixed-use developments are popular. For a start, they help combat the efficiency, security, traffic and infrastructural challenges, as they involve the juxtaposition of multiple facilities in one place.

The ‘walkability’ of mixed-use 114 | Africa Outlook issue 85

developments not only enhances quality of life for residents, but can also help revitalise an area, increasing private investment, creating efficiencies, promoting tourism, and supporting the development of a good business climate.

“We are proud of our mixed-use platform, which has changed the lives of a lot of people and organisations; just in the way they see real-estate and how offices and homes compliment the leisure and entertainment platform in Africa,” Onwuanibe explains.

LANDMARK PROJECTS One of the company’s flagship projects is Landmark Village, a fourhectare mixed-use site along an

eight-hectare private beachfront in Victoria Island, Lagos.

There are various amenities available, including restaurants, cinemas, apartments and hotels, retail units and office spaces. The development also boasts the only in-city beach on the West African coastline, which offers leisure activities such as quad biking, paintball, AstroTurf football, mini golf, volleyball, basketball, and water sports. It is bordered by the 1.6 kilometre Boardwalk, West Africa’s first pedestrian and cycle path along the Atlantic Ocean.

“It’s one of the most visited destinations on the West African coastline – we had 2.6 million visitors in 2019 alone. Our destination

CONSTRUCTION encourages people to come together and on average our visitors probably spend about $10 per head, a number which will significantly increase as we execute the next phase of our hotel and residential development. Our whole mixed-use live, work and play philosophy is unique,” Onwuanibe comments.

The company will continue to develop Landmark Village by adding a four-star hotel and tailormade affordable luxury apartments that will give its residents access to all the facilities of Landmark Village.

It recently added an open-air retail boulevard to the Village, inspired by City Walk in Dubai.

“I’m excited about creating something called the Landmark Dream Theatre, which will be like the O2 in Greenwich, London or Maddison Square Gardens in New York City. It will have an indoor arena for events, sporting activities, concerts and exhibitions – there’s nothing like that in West Africa,” Onwuanibe proclaims.

RELATIONSHIP-BUILDING The CEO believes that one reason

“YOU’RE DEALING WITH DIFFERENT INDUSTRIES, DIFFERENT SUPPLIERS, DIFFERENT INVESTORS AND DIFFERENT CLIENTS WHILST YOU CONTINUE TO BUILD THOSE RELATIONSHIPS WITH YOUR STAKEHOLDERS”

for Landmark Africa’s success is the positive relationships it has built over the years with businesses, clients and suppliers.

“We basically built our business on trust and partnerships,” Onwuanibe says. “The property market is all about the value chain, and the supply chain is a significant part of that chain – power, facilities management, mechanical engineering, structural and all the fittings/furnishings.

“You’re dealing with different industries, different suppliers, different investors and different clients whilst you continue to build those relationships with your stakeholders.

They say, ‘if you want to build fast, go alone; if you want to build far, go together’.”

Undertaking construction projects in Nigeria can be challenging, as around 60 percent of building products come from outside the country, necessitating the establishment of cross-border supply chains. Landmark Africa therefore must import products and transport them to its construction sites, a process Onwuanibe describes as

LANDMARK AFRICA

AWARDS AND ACCOLADES Over the past few years, Landmark Africa has been received numerous awards:

EUROMONEY REAL ESTATE AWARDS: 2016 WINNER – Best Real Estate Developer Award, Leisure/Hotel Category SUPERBRANDS: 2017 - East Africa Super Brand Award LONDON STOCK EXCHANGE: 2017 – Companies to Inspire ALL AFRICA BUSINESS LEADERS AWARD: 2017 FINALIST – African Company of the Year APPOEMN: 2017 WINNER – Best Purpose-Built Event Space THE PYNE AWARDS: 2018 WINNER – Event Venue of the Year EUROMONEY REAL ESTATE AWARDS: 2018 WINNER – Best Real Estate Developer Award, Industrial/Warehouse Africa Category EUROMONEY REAL ESTATE AWARDS: 2018 WINNER – Best Real Estate Developer Award, Industrial/Warehouse Nigeria Category FIABCI NIGERIA: 2018 WINNER – Best Mixed-use Development, Landmark Towers NIESV: 2019 Nominated – Corporate (Real Estate) Development Award

interesting, but incredibly challenging.

The company builds positive relationships with banks and other financial institutions to stay in business, something the CEO explains that Landmark Africa has done to great effect.

“I’m proud of the way we’ve dealt with financial institutions,” Onwuanibe adds. “We’ve worked with Standard Bank, Diamond Bank (now Access Bank), who have financed us across several projects over the last decade.

To date we have received over $100 million of finance and have paid every penny back, mostly ahead of schedule.

“It’s important to keep your word, and it’s important to treat loans with the respect that they were given to you. It also ensures people come back and continue to finance you.”

LOOKING FORWARD, GIVING BACK But Landmark Africa’s meteoric rise has been temporarily slowed down by COVID-19.

“From a real estate point of view, obviously the pandemic hurt. In December, we had more than 350,000 people visit Landmark. In June, at the height of the pandemic, we had less than 600,” Onwuanibe says.

He describes the pandemic as a ‘black swan event’, meaning it is characterised by extreme rarity and

enormous impact.

“There are several things you have to pay attention to during a black swan event. One of these is the supply chain. Another is to ensure that people remain economically active, and three is to think about welfare, making sure people have access to essentials,” the CEO says.

With so much mixed-use space going idle, Landmark Africa used the opportunity to give back to its community.

It partnered with YPO and the Lagos state government to develop a temporary field hospital on its property to help flatten the coronavirus curve in the country.

The 80 beds hospital had 10 critical care beds, and world-class facilities.

Around 400 patients passed through its doors, and there was an extremely low mortality rate. One of the highlights was treating and discharging a 98-year-old woman.

This caring ethos is not new – Onwuanibe has long believed in the importance of giving back. He is the past President and Founder of The Human Race Foundation – a diasporaled philanthropic, charitable, and commercial network – and the Board Chairman of the Lakeshore Cancer Centre, the first operational facility dedicated to cancer prevention and treatment in Nigeria.

AFRICA PROPERTY INVESTMENT SUMMIT: 2019 FINALIST – Best Mixed-use Development & Best Retail Development FOAID: 2019 – Landmark Boulevard citation at Festival of Architecture and Interior Design, India MEA MARKETS AFRICA EXCELLENCE AWARDS: 2020 WINNER – Best West Africa Real Estate Development Firm

116 | Africa Outlook issue 85

ETI-OSA Covid-19 isolation centre

CONSTRUCTION

Shiro restaurant Landmark Africa is also committed to the welfare of its clients and visitors.

It is working hard to COVID-proof its developments by re-engineering its spaces.

“It has been difficult – we preach social inclusion, while the pandemic preaches social distancing,” the CEO says.

He explains that buildings developed in the future will have to take into account social distancing measures: corridors and bathrooms will need to be larger; there will need to be an increase in open-air areas; the number of touchpoints will need to be reduced; and much more. But despite this need for futureproofing, and the financial hit caused by the pandemic, Onwuanibe remains resolutely

Hard Rock Cafe optimistic about the future.

“The first goal is to get through this pandemic and come out of it not just surviving but thriving,” he says.

“We’re creating a whole new system for access to our busines ecosystem.

Landmark Online will ensure the ecosystem patrons and partners can take advantage of most of our services and offerings remotely.

“Secondly is to focus on creating destinations in more African countries, changing the way people think about leisure, hospitality and entertainment in a residential and commercial setting.

We want to create new bubbles where you can live, work and play in the same environment and you feel safe and secure; you don’t have to deal with traffic, you have all the infrastructure

and all the services, overlaid with a customer service experience previously unknown in this part of the world.

“That’s a big priority for us – to strengthen our brand and improve the way people think about our industry, our continent and our country.”

With its unique philosophy and ethos of transparency and trust, we are in no doubt that Landmark Africa will succeed in its mission.

LANDMARK AFRICA Tel: +234 (0) 818 660 000 contactus@landmarkafrica.com www.landmarkafrica.com

Africa Outlook issue 85 | 117

EVENTS

Nigeria Mining Week October 12-16 | Online | www.nigeriaminingweek.com

A digital welcome to the region’s mining players WIT H A network of industry leaders, investors, visionaries and pioneers transforming the face of mining in the country, Nigeria Mining Week is the place to be to uncover the latest projects, meet new partners and land new deals.

The conference and exhibition is organised by Miners Association Nigeria and is hosted by the Ministry of Mines and Steel Development in association with Clarion Events and PwC. Established for four years, Nigeria Mining Week is the partner of choice, 118 | Africa Outlook issue 85

the innovative port of call and deal maker platform for all the mining stakeholders and influencers in the public and private sector wanting to do business in Nigeria.

We believe that providing an open dialogue between government, mining operators and technologies and services providers will create opportunities within the sector.

Why is Nigeria on the mining business map?

Despite having been neglected in

the past, Nigeria’s mining industry has witnessed some phenomenal developments within the past five years.

Endowed with key minerals and metals, Nigeria has tremendous mining potential, and the government’s economic diversification agenda lies in the exploitation of these resources.

The Ministry of Mines and Steel Development, supported by the Presidency is committed to making Nigeria a new global mining hub, through various initiatives to revive the sector.

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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 fast120 | Africa Outlook issue 85

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.

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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

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.

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EVENTS

Digital African Utility Week and POWERGEN Africa November 24-26 | Online (Swapcard) | www.african-utility-week.com

The largest power and water utilities exhibition, online TH E 20TH edition of African Utility Week and POWERGEN Africa, scheduled to take place from November 24-26 this year, is set to be a fully-fledged digital event featuring an inspiring online platform with world-class speakers, live discussions and virtual networking and product showcases.

Digital event highlights include: • Access focused and highly topical conference content • Learn from the industry’s leading experts 124 | Africa Outlook issue 85

• Personalise your learning opportunities by streaming the sessions most relevant to you and your business • Connect with your peers through our AI-powered digital networking The Digital African Utility Week and POWERGEN Africa will provide a mix of free and premium sessions ensuring that all levels of attendee can get the most value from in-depth content. The event offers partners and industry peers and opportunity to stay connected and informed on relevant

industry topics.

It is our way to offer both our long time partners and friends, as well as new acquaintances, the opportunity to stay connected despite being unable to meet in person. The Digital African Utility Week and POWERGEN Africa provides a market leading digital platform for buyers and sellers to connect and conduct business.

The event will be hosted online on the Swapcard platform, allowing connection with a broader audience, quality streaming of videos and engagement with everyone.

AFRICA’S LEADING POWER, ENERGY AND WATER CONFERENCE AND EXPO GOES ON(LINE)

THE DIGITAL EVENT 24 – 26 NOVEMBER 2020 Participate in a fully-fledged digital event featuring an inspiring online platform with world-class speakers, live discussions and digital networking and product showcases

Access focused and highly topical conference content

Learn from the industry's leading experts

Personalise your learning opportunities by streaming the sessions most relevant to you and your business

Connect with your peers through our AI-powered digital networking

To view the programme and register, please visit: www.african-utility-week.com/digital

THE FINAL WORD To round off each issue, we ask our contributing business leaders for their views on the same question

Paul Onwuanibe CEO, Landmark Africa “I believe in the importance of what I call the ‘Three Ts’: transparency, truth and trust. I would say to the young entrepreneur: “show that you are authentic, strive for excellence, show empathy at all times and remain logical”. There are no shortcuts in business - we need to be lifelong students and continue to learn.

So pay attention to those ‘Three Ts’.”

If you could offer one piece of advice for a young entrepreneur entering your industry, what would it be?

Peter Olyott CEO, Indwe Risk Services “What I can see, having been in the industry for so long, is that it has definitely broadened its appeal to other sectors and specialists over the past 20 years.

“When I joined, you just sold insurance. These days we have actuaries, lawyers, accountants, intermediaries, tech specialists, web designers and marketers, all capable of finding a career within insurance.

It is really a disruptive sector, with lots of opportunities to change the game. Insurance is constantly having to reinvent itself, and these changes are now exponential, so it’s a really exciting field to be in.”

Michael Ditz Managing Director, JAM Clothing “One of the beauties about retail today is that there are very few barriers to entry. In today’s world with the power of the internet and especially social media almost anybody can start a retail business.

You don’t even need a lot of capital to get started.

“There are also so many retail specific courses that are available at tertiary institutions, but I believe that there’s no substitute for on 126 | Africa Outlook issue 85

the job work experience. You can see the people in the industry who have worked in manufacturing and then started on the shop floor, their technical knowledge and knowhow stands out a mile.

“Finally, you can have the best store in the best location with the best merchandise, but if your retail staff are not 100 percent committed to serving and satisfying their customers you might as well shut shop. We see this time and time again when a store is struggling, and you bring in a new motivated team suddenly the store starts performing.”

Hendrik Malan CEO, Frost & Sullivan Africa “Outlearn the competition. There are a lot of very clever people out there. The chance of you being the best are slim. However, few individuals keep up a rigorous routine of learning after they leave university or college. If you focus your attention on mastering your craft for a number of years – combining practical experience of various aspects of the industry/skill with good quality learning and development – you WILL outlearn your competition.”

A story of collaboration and continuity during COVID-19...

WESTERN CAPE BLOOD SERVICE

HEALTHCARE

Banking on

T

he mind boggles when looking at statistics relating to blood.

The fuel that keeps us alive, the human body manufactures around 17 million red blood cells per second, with a single unit of blood containing 2.4 trillion of these cells.

It is estimated that blood accounts for roughly seven percent of the bodyweight of an average person, adults containing around five litres of blood inside their bodies. A small part of that, 0.02 percent, is pure gold.

A complex and intriguing part of our makeup, enduring heavy losses of blood can be fatal, making a reliable and safe supply of blood a critical part of any healthcare system and hospital network.

In South Africa, there are two major bodies responsible for the provision of blood to medical institutions and healthcare providers, with most of the covered by the South African WESTERN country CAPE BLOOD SERVICE National Blood Service.

In the west of the country, the Western Cape Blood Service (WCBS) is responsible for collecting, processing, testing and distributing blood products in the Western Cape province.

And it is here that Dr Greg Bellairs presides as CEO. “A fundamental duty of any blood service is to provide blood products to patients in hospitals timeously, safely and consistently. Without blood, many patients would otherwise die,” he says. “Blood products are critical in many clinical situations – for example, trauma, surgery, and treatment of leukaemia.”

Bellairs goes on to explain the transThis is some feat given that staffing suffered zero coronavirus fatalities andinto feeling the impact of several months fusion process and how WCBS fits levels were also markedly affected. was able to plug the resourcing gap to of reduced income, a period which thishours lifesaving series ofcontinuity events.

WCBS lost many working due ensure seamless of service. meant that expenses were reassessed, to employees either contracting the Another interesting nuance of “It starts with a treating clinician down-managed, and all non-essential virus or having to isolate themselves the pandemic period has been the expenditure was curtailed.

– fortunately, the organisation has thedemand forproducts blood and subsequent ordering blood required Bellairs adds: “We were fortunate to impact on sales and revenue. have sufficient reserves to weather the for the patient,“Blood andusage submitting an financial storm, and the early uncervaried significantly depending on the degree of lockorder form and blood sample to the tainty levels, which were high, have Note: The photos in this THE WCBS down,” Bellairs explains. “At the height been replaced by recent experience blood bank,” he continues. of restrictions, and during the period demonstrating that although sales MISSION article were taken prior to when alcohol was banned and elective and income were reduced, we now “Blood are selected and know to what extent, and are able to Service products the coronavirus outbreak. “Western Cape Blood surgery curtailed to free up hospiis a non-profit regional health beds for COVID-19 the anticipate the impacts of later waves matched for tal the patient –patients, a process The wearing of masks is organisation, dedicated to volumes of blood products sold were of the pandemic. now mandatory. crossmatching, which ensures “Despite our financial challenges, collecting bloodcalled from voluntary reduced by at least 30 percent.

Blood South Africa’s Western Cape Blood Service continues to collect, process and deliver life-saving blood products to public and private healthcare providers in spite of the challenges presented by the coronavirus pandemic Writer: Tom Wadlow | Project Manager: Callam Waller

A STORY OF COLLABORATION AND CONTINUITY DURING COVID-19

blood donors, and providing the safest blood products and efficient service to the community, while operating at the highest professional and ethical standards and remaining a viable organisation.”

“As restrictions were lifted, sales improved but remained lower than originally expected. In South Africa, Africa Outlook issue 85 trauma is influenced by the availability and use of alcohol – and we saw evidence of this when alcohol became available, as blood usage increased.”

More recent weeks have seen sales normalise, but WCBS is still

we recognise that we are fortunate to operate in the healthcare space, which somewhat insulated us from the finan-

|cial3devastation faced by organisations which could not operate at all during the lockdown.

“One of our core goals was to not retrench any staff, and to pay everyone in full – we were able to achieve this.”

See page

44 36 Time Matters When You Have a Sepsis!

S

epsis is a complex and severe syndrome associated with a dysregulated immune response to infection. It is a global health crisis that every year affects around 50 million people worldwide, and at least 11 million die.

Depending on country, mortality varies between 15 and 50 percent. At least two million sepsis deaths are estimated to occur in Africa each year. These statistics, however, are presumed to be gross underestimates, because in Africa sepsis is rarely diagnosed, reported, or registered as cause of death.

Patients with sepsis most often enter the hospital through the emergency department, and clinicians often use white blood cell (WBC) counts to help identify sepsis, but changes in WBC alone have limited utility for sepsis diagnosis and delayed detection can impact adverse outcomes. Many surviving patients suffer from the consequences of sepsis for the rest of their lives.

Early detection in emergency department and appropriate therapeutic intervention can increases the likelihood of survival for patients with sepsis.

The hematology laboratory has a vital role to play in rapidly identifying septic patients or those who are at high risk of developing sepsis. Recently, a new sepsis biomarker, Monocyte Distribution Width (MDW), which is based on monocytes’ variability in sepsis, became available on a routine hematology analyzer DxH900 from Beckman Coulter. The analyser characterises cells in their near-native state to enable measurement of small changes in cell morphology that occur at the onset of sepsis. The performance of this early sepsis indicator demonstrated in large

Beckman Coulter South Africa, Jhb

|

clinical trials and received FDA 510(k) clearance in April 2019.

The clinical trial was conducted by Dr. Crouser, a researcher and a leader of the sepsis detection and treatment program at the Ohio State University’s East Hospital, Columbus, OH and his team to assess the monocyte distribution width parameter as a sepsis biomarker.

The large multicenter study concluded that “in conjunction with the WBC, as components of the CBC with differential, the performance of MDW further improves and is predicted to enhance healthcare decisions relating to the early detection and treatment of sepsis in the ED.”1 This year, Beckman Coulter has expanded its partnership with Biomedical Advanced Research and Development Authority (BARDA) to study the use of the unique sepsis diagnostic biomarker (MDW) in COVID-19 patients. The aim of the new study is to optimise a machine-learning based sepsis diagnostic and prediction algorithm to determine whether the test can aid in the detection of sepsis in coronavirus (COVID-19) patients, regardless of whether it is bacterial or viral induced.

1. Crouser ED, Parrillo JE, Seymour C, et al. Monocyte distribution width, a novel indicator of Sepsis-2 and Sepsis-3 in high risk emergency department patients. Crit Care Med. 2019;47(8):1018–25.

T +27 11 564 3000

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www.beckmancoulter.com

14 | Africa Outlook issue 85

Western Cape Blood Service has told its story.

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Issue 85

www.africaoutlookmag.com/work-with-us BLOOD How South Africa’s Western Cape Blood Service continues to collect, process and deliver life-saving blood products

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

Outlook Creative Services

specialist production skills to offer a full and bespoke range of editorial, design and marketing services via its new Outlook Creative Services division.

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DESIGN:

E D I TO R I A L :

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

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

Devon Collins +44 (0) 1603 959 661 devon.collins@outlookpublishing.com

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